Sen. Michael E. Hastings

Filed: 4/8/2022

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 1539

2    AMENDMENT NO. ______. Amend House Bill 1539 by replacing
3everything after the enacting clause with the following:
 
4
"ARTICLE 5. EDGE CREDIT

 
5    Section 5-5. The Economic Development for a Growing
6Economy Tax Credit Act is amended by changing Sections 5-5,
75-15, 5-20, and 5-77 as follows:
 
8    (35 ILCS 10/5-5)
9    Sec. 5-5. Definitions. As used in this Act:
10    "Agreement" means the Agreement between a Taxpayer and the
11Department under the provisions of Section 5-50 of this Act.
12    "Applicant" means a Taxpayer that is operating a business
13located or that the Taxpayer plans to locate within the State
14of Illinois and that is engaged in interstate or intrastate
15commerce for the purpose of manufacturing, processing,

 

 

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1assembling, warehousing, or distributing products, conducting
2research and development, providing tourism services, or
3providing services in interstate commerce, office industries,
4or agricultural processing, but excluding retail, retail food,
5health, or professional services. "Applicant" does not include
6a Taxpayer who closes or substantially reduces an operation at
7one location in the State and relocates substantially the same
8operation to another location in the State. This does not
9prohibit a Taxpayer from expanding its operations at another
10location in the State, provided that existing operations of a
11similar nature located within the State are not closed or
12substantially reduced. This also does not prohibit a Taxpayer
13from moving its operations from one location in the State to
14another location in the State for the purpose of expanding the
15operation provided that the Department determines that
16expansion cannot reasonably be accommodated within the
17municipality in which the business is located, or in the case
18of a business located in an incorporated area of the county,
19within the county in which the business is located, after
20conferring with the chief elected official of the municipality
21or county and taking into consideration any evidence offered
22by the municipality or county regarding the ability to
23accommodate expansion within the municipality or county.
24    "Credit" means the amount agreed to between the Department
25and Applicant under this Act, but not to exceed the lesser of:
26(1) the sum of (i) 50% of the Incremental Income Tax

 

 

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1attributable to New Employees at the Applicant's project and
2(ii) 10% of the training costs of New Employees; or (2) 100% of
3the Incremental Income Tax attributable to New Employees at
4the Applicant's project. However, if the project is located in
5an underserved area, then the amount of the Credit may not
6exceed the lesser of: (1) the sum of (i) 75% of the Incremental
7Income Tax attributable to New Employees at the Applicant's
8project and (ii) 10% of the training costs of New Employees; or
9(2) 100% of the Incremental Income Tax attributable to New
10Employees at the Applicant's project. If an Applicant agrees
11to hire the required number of New Employees, then the maximum
12amount of the Credit for that Applicant may be increased by an
13amount not to exceed 25% of the Incremental Income Tax
14attributable to retained employees at the Applicant's project;
15provided that, in order to receive the increase for retained
16employees, the Applicant must provide the additional evidence
17required under paragraph (3) of subsection (b) of Section
185-25.
19    "Department" means the Department of Commerce and Economic
20Opportunity.
21    "Director" means the Director of Commerce and Economic
22Opportunity.
23    "Full-time Employee" means an individual who is employed
24for consideration for at least 35 hours each week or who
25renders any other standard of service generally accepted by
26industry custom or practice as full-time employment. An

 

 

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1individual for whom a W-2 is issued by a Professional Employer
2Organization (PEO) is a full-time employee if employed in the
3service of the Applicant for consideration for at least 35
4hours each week or who renders any other standard of service
5generally accepted by industry custom or practice as full-time
6employment to Applicant.
7    "Incremental Income Tax" means the total amount withheld
8during the taxable year from the compensation of New Employees
9and, if applicable, retained employees under Article 7 of the
10Illinois Income Tax Act arising from employment at a project
11that is the subject of an Agreement.
12    "New Construction EDGE Agreement" means the Agreement
13between a Taxpayer and the Department under the provisions of
14Section 5-51 of this Act.
15    "New Construction EDGE Credit" means an amount agreed to
16between the Department and the Applicant under this Act as
17part of a New Construction EDGE Agreement that does not exceed
1850% of the Incremental Income Tax attributable to New
19Construction EDGE Employees at the Applicant's project;
20however, if the New Construction EDGE Project is located in an
21underserved area, then the amount of the New Construction EDGE
22Credit may not exceed 75% of the Incremental Income Tax
23attributable to New Construction EDGE Employees at the
24Applicant's New Construction EDGE Project.
25    "New Construction EDGE Employee" means a laborer or worker
26who is employed by an Illinois contractor or subcontractor in

 

 

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1the actual construction work on the site of a New Construction
2EDGE Project, pursuant to a New Construction EDGE Agreement.
3    "New Construction EDGE Incremental Income Tax" means the
4total amount withheld during the taxable year from the
5compensation of New Construction EDGE Employees.
6    "New Construction EDGE Project" means the building of a
7Taxpayer's structure or building, or making improvements of
8any kind to real property. "New Construction EDGE Project"
9does not include the routine operation, routine repair, or
10routine maintenance of existing structures, buildings, or real
11property.
12    "New Employee" means:
13        (a) A Full-time Employee first employed by a Taxpayer
14    in the project that is the subject of an Agreement and who
15    is hired after the Taxpayer enters into the tax credit
16    Agreement.
17        (b) The term "New Employee" does not include:
18            (1) an employee of the Taxpayer who performs a job
19        that was previously performed by another employee, if
20        that job existed for at least 6 months before hiring
21        the employee;
22            (2) an employee of the Taxpayer who was previously
23        employed in Illinois by a Related Member of the
24        Taxpayer and whose employment was shifted to the
25        Taxpayer after the Taxpayer entered into the tax
26        credit Agreement; or

 

 

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1            (3) a child, grandchild, parent, or spouse, other
2        than a spouse who is legally separated from the
3        individual, of any individual who has a direct or an
4        indirect ownership interest of at least 5% in the
5        profits, capital, or value of the Taxpayer.
6        (c) Notwithstanding paragraph (1) of subsection (b),
7    an employee may be considered a New Employee under the
8    Agreement if the employee performs a job that was
9    previously performed by an employee who was:
10            (1) treated under the Agreement as a New Employee;
11        and
12            (2) promoted by the Taxpayer to another job.
13        (d) Notwithstanding subsection (a), the Department may
14    award Credit to an Applicant with respect to an employee
15    hired prior to the date of the Agreement if:
16            (1) the Applicant is in receipt of a letter from
17        the Department stating an intent to enter into a
18        credit Agreement;
19            (2) the letter described in paragraph (1) is
20        issued by the Department not later than 15 days after
21        the effective date of this Act; and
22            (3) the employee was hired after the date the
23        letter described in paragraph (1) was issued.
24    "Noncompliance Date" means, in the case of a Taxpayer that
25is not complying with the requirements of the Agreement or the
26provisions of this Act, the day following the last date upon

 

 

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1which the Taxpayer was in compliance with the requirements of
2the Agreement and the provisions of this Act, as determined by
3the Director, pursuant to Section 5-65.
4    "Pass Through Entity" means an entity that is exempt from
5the tax under subsection (b) or (c) of Section 205 of the
6Illinois Income Tax Act.
7    "Professional Employer Organization" (PEO) means an
8employee leasing company, as defined in Section 206.1(A)(2) of
9the Illinois Unemployment Insurance Act.
10    "Related Member" means a person that, with respect to the
11Taxpayer during any portion of the taxable year, is any one of
12the following:
13        (1) An individual stockholder, if the stockholder and
14    the members of the stockholder's family (as defined in
15    Section 318 of the Internal Revenue Code) own directly,
16    indirectly, beneficially, or constructively, in the
17    aggregate, at least 50% of the value of the Taxpayer's
18    outstanding stock.
19        (2) A partnership, estate, or trust and any partner or
20    beneficiary, if the partnership, estate, or trust, and its
21    partners or beneficiaries own directly, indirectly,
22    beneficially, or constructively, in the aggregate, at
23    least 50% of the profits, capital, stock, or value of the
24    Taxpayer.
25        (3) A corporation, and any party related to the
26    corporation in a manner that would require an attribution

 

 

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1    of stock from the corporation to the party or from the
2    party to the corporation under the attribution rules of
3    Section 318 of the Internal Revenue Code, if the Taxpayer
4    owns directly, indirectly, beneficially, or constructively
5    at least 50% of the value of the corporation's outstanding
6    stock.
7        (4) A corporation and any party related to that
8    corporation in a manner that would require an attribution
9    of stock from the corporation to the party or from the
10    party to the corporation under the attribution rules of
11    Section 318 of the Internal Revenue Code, if the
12    corporation and all such related parties own in the
13    aggregate at least 50% of the profits, capital, stock, or
14    value of the Taxpayer.
15        (5) A person to or from whom there is attribution of
16    stock ownership in accordance with Section 1563(e) of the
17    Internal Revenue Code, except, for purposes of determining
18    whether a person is a Related Member under this paragraph,
19    20% shall be substituted for 5% wherever 5% appears in
20    Section 1563(e) of the Internal Revenue Code.
21    "Startup taxpayer" means a corporation, partnership, or
22other entity incorporated or organized no more than 5 years
23before the filing of an application for an Agreement that has
24never had any Illinois income tax liability, excluding any
25Illinois income tax liability of a Related Member which shall
26not be attributed to the startup taxpayer.

 

 

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1    "Taxpayer" means an individual, corporation, partnership,
2or other entity that has any Illinois Income Tax liability.
3    Until July 1, 2022, "underserved "Underserved area" means
4a geographic area that meets one or more of the following
5conditions:
6        (1) the area has a poverty rate of at least 20%
7    according to the latest federal decennial census;
8        (2) 75% or more of the children in the area
9    participate in the federal free lunch program according to
10    reported statistics from the State Board of Education;
11        (3) at least 20% of the households in the area receive
12    assistance under the Supplemental Nutrition Assistance
13    Program (SNAP); or
14        (4) the area has an average unemployment rate, as
15    determined by the Illinois Department of Employment
16    Security, that is more than 120% of the national
17    unemployment average, as determined by the U.S. Department
18    of Labor, for a period of at least 2 consecutive calendar
19    years preceding the date of the application.
20    On and after July 1, 2022, "underserved area" means a
21geographic area that meets one or more of the following
22conditions:
23        (1) the area has a poverty rate of at least 20%
24    according to the latest American Community Survey;
25        (2) 35% or more of the families with children in the
26    area are living below 130% of the poverty line, according

 

 

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1    to the latest American Community Survey;
2        (3) at least 20% of the households in the area receive
3    assistance under the Supplemental Nutrition Assistance
4    Program (SNAP); or
5        (4) the area has an average unemployment rate, as
6    determined by the Illinois Department of Employment
7    Security, that is more than 120% of the national
8    unemployment average, as determined by the U.S. Department
9    of Labor, for a period of at least 2 consecutive calendar
10    years preceding the date of the application.
11(Source: P.A. 101-9, eff. 6-5-19; 102-330, eff. 1-1-22.)
 
12    (35 ILCS 10/5-15)
13    Sec. 5-15. Tax Credit Awards. Subject to the conditions
14set forth in this Act, a Taxpayer is entitled to a Credit
15against or, as described in subsection (g) of this Section, a
16payment towards taxes imposed pursuant to subsections (a) and
17(b) of Section 201 of the Illinois Income Tax Act that may be
18imposed on the Taxpayer for a taxable year beginning on or
19after January 1, 1999, if the Taxpayer is awarded a Credit by
20the Department under this Act for that taxable year.
21    (a) The Department shall make Credit awards under this Act
22to foster job creation and retention in Illinois.
23    (b) A person that proposes a project to create new jobs in
24Illinois must enter into an Agreement with the Department for
25the Credit under this Act.

 

 

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1    (c) The Credit shall be claimed for the taxable years
2specified in the Agreement.
3    (d) The Credit shall not exceed the Incremental Income Tax
4attributable to the project that is the subject of the
5Agreement.
6    (e) Nothing herein shall prohibit a Tax Credit Award to an
7Applicant that uses a PEO if all other award criteria are
8satisfied.
9    (f) In lieu of the Credit allowed under this Act against
10the taxes imposed pursuant to subsections (a) and (b) of
11Section 201 of the Illinois Income Tax Act for any taxable year
12ending on or after December 31, 2009, for Taxpayers that
13entered into Agreements prior to January 1, 2015 and otherwise
14meet the criteria set forth in this subsection (f), the
15Taxpayer may elect to claim the Credit against its obligation
16to pay over withholding under Section 704A of the Illinois
17Income Tax Act.
18        (1) The election under this subsection (f) may be made
19    only by a Taxpayer that (i) is primarily engaged in one of
20    the following business activities: water purification and
21    treatment, motor vehicle metal stamping, automobile
22    manufacturing, automobile and light duty motor vehicle
23    manufacturing, motor vehicle manufacturing, light truck
24    and utility vehicle manufacturing, heavy duty truck
25    manufacturing, motor vehicle body manufacturing, cable
26    television infrastructure design or manufacturing, or

 

 

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1    wireless telecommunication or computing terminal device
2    design or manufacturing for use on public networks and
3    (ii) meets the following criteria:
4            (A) the Taxpayer (i) had an Illinois net loss or an
5        Illinois net loss deduction under Section 207 of the
6        Illinois Income Tax Act for the taxable year in which
7        the Credit is awarded, (ii) employed a minimum of
8        1,000 full-time employees in this State during the
9        taxable year in which the Credit is awarded, (iii) has
10        an Agreement under this Act on December 14, 2009 (the
11        effective date of Public Act 96-834), and (iv) is in
12        compliance with all provisions of that Agreement;
13            (B) the Taxpayer (i) had an Illinois net loss or an
14        Illinois net loss deduction under Section 207 of the
15        Illinois Income Tax Act for the taxable year in which
16        the Credit is awarded, (ii) employed a minimum of
17        1,000 full-time employees in this State during the
18        taxable year in which the Credit is awarded, and (iii)
19        has applied for an Agreement within 365 days after
20        December 14, 2009 (the effective date of Public Act
21        96-834);
22            (C) the Taxpayer (i) had an Illinois net operating
23        loss carryforward under Section 207 of the Illinois
24        Income Tax Act in a taxable year ending during
25        calendar year 2008, (ii) has applied for an Agreement
26        within 150 days after the effective date of this

 

 

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1        amendatory Act of the 96th General Assembly, (iii)
2        creates at least 400 new jobs in Illinois, (iv)
3        retains at least 2,000 jobs in Illinois that would
4        have been at risk of relocation out of Illinois over a
5        10-year period, and (v) makes a capital investment of
6        at least $75,000,000;
7            (D) the Taxpayer (i) had an Illinois net operating
8        loss carryforward under Section 207 of the Illinois
9        Income Tax Act in a taxable year ending during
10        calendar year 2009, (ii) has applied for an Agreement
11        within 150 days after the effective date of this
12        amendatory Act of the 96th General Assembly, (iii)
13        creates at least 150 new jobs, (iv) retains at least
14        1,000 jobs in Illinois that would have been at risk of
15        relocation out of Illinois over a 10-year period, and
16        (v) makes a capital investment of at least
17        $57,000,000; or
18            (E) the Taxpayer (i) employed at least 2,500
19        full-time employees in the State during the year in
20        which the Credit is awarded, (ii) commits to make at
21        least $500,000,000 in combined capital improvements
22        and project costs under the Agreement, (iii) applies
23        for an Agreement between January 1, 2011 and June 30,
24        2011, (iv) executes an Agreement for the Credit during
25        calendar year 2011, and (v) was incorporated no more
26        than 5 years before the filing of an application for an

 

 

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1        Agreement.
2        (1.5) The election under this subsection (f) may also
3    be made by a Taxpayer for any Credit awarded pursuant to an
4    agreement that was executed between January 1, 2011 and
5    June 30, 2011, if the Taxpayer (i) is primarily engaged in
6    the manufacture of inner tubes or tires, or both, from
7    natural and synthetic rubber, (ii) employs a minimum of
8    2,400 full-time employees in Illinois at the time of
9    application, (iii) creates at least 350 full-time jobs and
10    retains at least 250 full-time jobs in Illinois that would
11    have been at risk of being created or retained outside of
12    Illinois, and (iv) makes a capital investment of at least
13    $200,000,000 at the project location.
14        (1.6) The election under this subsection (f) may also
15    be made by a Taxpayer for any Credit awarded pursuant to an
16    agreement that was executed within 150 days after the
17    effective date of this amendatory Act of the 97th General
18    Assembly, if the Taxpayer (i) is primarily engaged in the
19    operation of a discount department store, (ii) maintains
20    its corporate headquarters in Illinois, (iii) employs a
21    minimum of 4,250 full-time employees at its corporate
22    headquarters in Illinois at the time of application, (iv)
23    retains at least 4,250 full-time jobs in Illinois that
24    would have been at risk of being relocated outside of
25    Illinois, (v) had a minimum of $40,000,000,000 in total
26    revenue in 2010, and (vi) makes a capital investment of at

 

 

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1    least $300,000,000 at the project location.
2        (1.7) Notwithstanding any other provision of law, the
3    election under this subsection (f) may also be made by a
4    Taxpayer for any Credit awarded pursuant to an agreement
5    that was executed or applied for on or after July 1, 2011
6    and on or before March 31, 2012, if the Taxpayer is
7    primarily engaged in the manufacture of original and
8    aftermarket filtration parts and products for automobiles,
9    motor vehicles, light duty motor vehicles, light trucks
10    and utility vehicles, and heavy duty trucks, (ii) employs
11    a minimum of 1,000 full-time employees in Illinois at the
12    time of application, (iii) creates at least 250 full-time
13    jobs in Illinois, (iv) relocates its corporate
14    headquarters to Illinois from another state, and (v) makes
15    a capital investment of at least $4,000,000 at the project
16    location.
17        (1.8) Notwithstanding any other provision of law, the
18    election under this subsection (f) may also be made by a
19    startup taxpayer for any Credit awarded pursuant to an
20    Agreement that was executed or applied for on or after the
21    effective date of this amendatory Act of the 102nd General
22    Assembly, if the startup taxpayer, without considering any
23    Related Member or other investor, (i) has never had any
24    Illinois income tax liability and (ii) was incorporated no
25    more than 5 years before the filing of an application for
26    an Agreement. Any such election under this paragraph (1.8)

 

 

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1    shall be effective unless and until such startup taxpayer
2    has any Illinois income tax liability. This election under
3    this paragraph (1.8) shall automatically terminate when
4    the startup taxpayer has any Illinois income tax liability
5    at the end of any taxable year during the term of the
6    Agreement. Thereafter, the startup taxpayer may receive a
7    Credit, taking into account any benefits previously
8    enjoyed or received by way of the election under this
9    paragraph (1.8), so long as the startup taxpayer remains
10    in compliance with the terms and conditions of the
11    Agreement.
12        (2) An election under this subsection shall allow the
13    credit to be taken against payments otherwise due under
14    Section 704A of the Illinois Income Tax Act during the
15    first calendar year beginning after the end of the taxable
16    year in which the credit is awarded under this Act.
17        (3) The election shall be made in the form and manner
18    required by the Illinois Department of Revenue and, once
19    made, shall be irrevocable.
20        (4) If a Taxpayer who meets the requirements of
21    subparagraph (A) of paragraph (1) of this subsection (f)
22    elects to claim the Credit against its withholdings as
23    provided in this subsection (f), then, on and after the
24    date of the election, the terms of the Agreement between
25    the Taxpayer and the Department may not be further amended
26    during the term of the Agreement.

 

 

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1    (g) A pass-through entity that has been awarded a credit
2under this Act, its shareholders, or its partners may treat
3some or all of the credit awarded pursuant to this Act as a tax
4payment for purposes of the Illinois Income Tax Act. The term
5"tax payment" means a payment as described in Article 6 or
6Article 8 of the Illinois Income Tax Act or a composite payment
7made by a pass-through entity on behalf of any of its
8shareholders or partners to satisfy such shareholders' or
9partners' taxes imposed pursuant to subsections (a) and (b) of
10Section 201 of the Illinois Income Tax Act. In no event shall
11the amount of the award credited pursuant to this Act exceed
12the Illinois income tax liability of the pass-through entity
13or its shareholders or partners for the taxable year.
14(Source: P.A. 100-511, eff. 9-18-17.)
 
15    (35 ILCS 10/5-20)
16    Sec. 5-20. Application for a project to create and retain
17new jobs.
18    (a) Any Taxpayer proposing a project located or planned to
19be located in Illinois may request consideration for
20designation of its project, by formal written letter of
21request or by formal application to the Department, in which
22the Applicant states its intent to make at least a specified
23level of investment and intends to hire or retain a specified
24number of full-time employees at a designated location in
25Illinois. As circumstances require, the Department may require

 

 

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1a formal application from an Applicant and a formal letter of
2request for assistance.
3    (b) In order to qualify for Credits under this Act, an
4Applicant's project must:
5        (1) if the Applicant has more than 100 employees,
6    involve an investment of at least $2,500,000 in capital
7    improvements to be placed in service within the State as a
8    direct result of the project; if the Applicant has 100 or
9    fewer employees, then there is no capital investment
10    requirement;
11        (1.5) if the Applicant has more than 100 employees,
12    employ a number of new employees in the State equal to the
13    lesser of (A) 10% of the number of full-time employees
14    employed by the applicant world-wide on the date the
15    application is filed with the Department or (B) 50 New
16    Employees; and, if the Applicant has 100 or fewer
17    employees, employ a number of new employees in the State
18    equal to the lesser of (A) 5% of the number of full-time
19    employees employed by the applicant world-wide on the date
20    the application is filed with the Department or (B) 50 New
21    Employees;
22        (1.6) if the Applicant is a startup taxpayer, the
23    employees employed by Related Members shall not be
24    attributed to the Applicant for purposes of determining
25    the capital investment or job creation requirements under
26    this subsection (b);

 

 

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1        (2) (blank);
2        (3) (blank); and
3        (4) include an annual sexual harassment policy report
4    as provided under Section 5-58.
5    (c) After receipt of an application, the Department may
6enter into an Agreement with the Applicant if the application
7is accepted in accordance with Section 5-25.
8(Source: P.A. 100-511, eff. 9-18-17; 100-698, eff. 1-1-19;
9101-81, eff. 7-12-19.)
 
10    (35 ILCS 10/5-77)
11    Sec. 5-77. Sunset of new Agreements. The Department shall
12not enter into any new Agreements under the provisions of
13Section 5-50 of this Act after June 30, 2027 June 30, 2022.
14(Source: P.A. 99-925, eff. 1-20-17; 100-511, eff. 9-18-17.)
 
15    Section 5-10. The River Edge Redevelopment Zone Act is
16amended by changing Section 10-3 as follows:
 
17    (65 ILCS 115/10-3)
18    Sec. 10-3. Definitions. As used in this Act:
19    "Department" means the Department of Commerce and Economic
20Opportunity.
21    "River Edge Redevelopment Zone" means an area of the State
22certified by the Department as a River Edge Redevelopment Zone
23pursuant to this Act.

 

 

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1    "Designated zone organization" means an association or
2entity: (1) the members of which are substantially all
3residents of the River Edge Redevelopment Zone or of the
4municipality in which the River Edge Redevelopment Zone is
5located; (2) the board of directors of which is elected by the
6members of the organization; (3) that satisfies the criteria
7set forth in Section 501(c) (3) or 501(c) (4) of the Internal
8Revenue Code; and (4) that exists primarily for the purpose of
9performing within the zone, for the benefit of the residents
10and businesses thereof, any of the functions set forth in
11Section 8 of this Act.
12    "Incremental income tax" means the total amount withheld
13during the taxable year from the compensation of River Edge
14Construction Jobs Employees.
15    "Agency" means: each officer, board, commission, and
16agency created by the Constitution, in the executive branch of
17State government, other than the State Board of Elections;
18each officer, department, board, commission, agency,
19institution, authority, university, and body politic and
20corporate of the State; each administrative unit or corporate
21outgrowth of the State government that is created by or
22pursuant to statute, other than units of local government and
23their officers, school districts, and boards of election
24commissioners; and each administrative unit or corporate
25outgrowth of the above and as may be created by executive order
26of the Governor. No entity is an "agency" for the purposes of

 

 

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1this Act unless the entity is authorized by law to make rules
2or regulations.
3    "River Edge construction jobs credit" means an amount
4equal to 50% of the incremental income tax attributable to
5River Edge construction employees employed on a River Edge
6construction jobs project. However, the amount may equal 75%
7of the incremental income tax attributable to River Edge
8construction employees employed on a River Edge construction
9jobs project located in an underserved area. The total
10aggregate amount of credits awarded under the Blue Collar Jobs
11Act (Article 20 of this amendatory Act of the 101st General
12Assembly) shall not exceed $20,000,000 in any State fiscal
13year.
14    "River Edge construction jobs employee" means a laborer or
15worker who is employed by an Illinois contractor or
16subcontractor in the actual construction work on the site of a
17River Edge construction jobs project.
18    "River Edge construction jobs project" means building a
19structure or building, or making improvements of any kind to
20real property, in a River Edge Redevelopment Zone that is
21built or improved in the course of completing a qualified
22rehabilitation plan. "River Edge construction jobs project"
23does not include the routine operation, routine repair, or
24routine maintenance of existing structures, buildings, or real
25property.
26    "Rule" means each agency statement of general

 

 

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1applicability that implements, applies, interprets, or
2prescribes law or policy, but does not include (i) statements
3concerning only the internal management of an agency and not
4affecting private rights or procedures available to persons or
5entities outside the agency, (ii) intra-agency memoranda, or
6(iii) the prescription of standardized forms.
7    Until July 1, 2022, "underserved "Underserved area" means
8a geographic area that meets one or more of the following
9conditions:
10        (1) the area has a poverty rate of at least 20%
11    according to the latest federal decennial census;
12        (2) 75% or more of the children in the area
13    participate in the federal free lunch program according to
14    reported statistics from the State Board of Education;
15        (3) at least 20% of the households in the area receive
16    assistance under the Supplemental Nutrition Assistance
17    Program (SNAP); or
18        (4) the area has an average unemployment rate, as
19    determined by the Illinois Department of Employment
20    Security, that is more than 120% of the national
21    unemployment average, as determined by the U.S. Department
22    of Labor, for a period of at least 2 consecutive calendar
23    years preceding the date of the application.
24    Beginning July 1, 2022, "Underserved area" means a
25geographic area that meets one or more of the following
26conditions:

 

 

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1        (1) the area has a poverty rate of at least 20%
2    according to the latest American Community Survey;
3        (2) 35% or more of the families with children in the
4    area are living below 130% of the poverty line, according
5    to the latest American Community Survey;
6        (3) at least 20% of the households in the area receive
7    assistance under the Supplemental Nutrition Assistance
8    Program (SNAP); or
9        (4) the area has an average unemployment rate, as
10    determined by the Illinois Department of Employment
11    Security, that is more than 120% of the national
12    unemployment average, as determined by the U.S. Department
13    of Labor, for a period of at least 2 consecutive calendar
14    years preceding the date of the application.
15(Source: P.A. 101-9, eff. 6-5-19.)
 
16
ARTICLE 10. FILM PRODUCTION TAX CREDIT

 
17    Section 10-5. The Illinois Income Tax Act is amended by
18changing Section 213 as follows:
 
19    (35 ILCS 5/213)
20    Sec. 213. Film production services credit. For tax years
21beginning on or after January 1, 2004, a taxpayer who has been
22awarded a tax credit under the Film Production Services Tax
23Credit Act or under the Film Production Services Tax Credit

 

 

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1Act of 2008 is entitled to a credit against the taxes imposed
2under subsections (a) and (b) of Section 201 of this Act in an
3amount determined by the Department of Commerce and Economic
4Opportunity under those Acts. If the taxpayer is a partnership
5or Subchapter S corporation, the credit is allowed to the
6partners or shareholders in accordance with the determination
7of income and distributive share of income under Sections 702
8and 704 and Subchapter S of the Internal Revenue Code.
9    A transfer of this credit may be made by the taxpayer
10earning the credit within one year after the credit is awarded
11in accordance with rules adopted by the Department of Commerce
12and Economic Opportunity. Beginning July 1, 2023, if a credit
13is transferred under this Section by the taxpayer, then the
14transferor taxpayer shall pay to the Department of Commerce
15and Economic Opportunity, upon notification of a transfer, a
16fee equal to 2.5% of the transferred credit amount eligible
17for nonresident wages, as described in Section 10 of the Film
18Production Services Tax Credit Act of 2008, and an additional
19fee of 0.25% of the total amount of the transferred credit that
20is not calculated on nonresident wages, which shall be
21deposited into the Illinois Production Workforce Development
22Fund.
23    The Department, in cooperation with the Department of
24Commerce and Economic Opportunity, must prescribe rules to
25enforce and administer the provisions of this Section. This
26Section is exempt from the provisions of Section 250 of this

 

 

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1Act.
2    The credit may not be carried back. If the amount of the
3credit exceeds the tax liability for the year, the excess may
4be carried forward and applied to the tax liability of the 5
5taxable years following the excess credit year. The credit
6shall be applied to the earliest year for which there is a tax
7liability. If there are credits from more than one tax year
8that are available to offset a liability, the earlier credit
9shall be applied first. In no event shall a credit under this
10Section reduce the taxpayer's liability to less than zero.
11(Source: P.A. 94-171, eff. 7-11-05; 95-720, eff. 5-27-08.)
 
12    Section 10-10. The Film Production Services Tax Credit Act
13of 2008 is amended by changing Sections 10 and 42 and by adding
14Section 46 as follows:
 
15    (35 ILCS 16/10)
16    Sec. 10. Definitions. As used in this Act:
17    "Accredited production" means: (i) for productions
18commencing before May 1, 2006, a film, video, or television
19production that has been certified by the Department in which
20the aggregate Illinois labor expenditures included in the cost
21of the production, in the period that ends 12 months after the
22time principal filming or taping of the production began,
23exceed $100,000 for productions of 30 minutes or longer, or
24$50,000 for productions of less than 30 minutes; and (ii) for

 

 

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1productions commencing on or after May 1, 2006, a film, video,
2or television production that has been certified by the
3Department in which the Illinois production spending included
4in the cost of production in the period that ends 12 months
5after the time principal filming or taping of the production
6began exceeds $100,000 for productions of 30 minutes or longer
7or exceeds $50,000 for productions of less than 30 minutes.
8"Accredited production" does not include a production that:
9        (1) is news, current events, or public programming, or
10    a program that includes weather or market reports;
11        (2) is a talk show;
12        (3) is a production in respect of a game,
13    questionnaire, or contest;
14        (4) is a sports event or activity;
15        (5) is a gala presentation or awards show;
16        (6) is a finished production that solicits funds;
17        (7) is a production produced by a film production
18    company if records, as required by 18 U.S.C. 2257, are to
19    be maintained by that film production company with respect
20    to any performer portrayed in that single media or
21    multimedia program; or
22        (8) is a production produced primarily for industrial,
23    corporate, or institutional purposes.
24    "Accredited animated production" means an accredited
25production in which movement and characters' performances are
26created using a frame-by-frame technique and a significant

 

 

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1number of major characters are animated. Motion capture by
2itself is not an animation technique.
3    "Accredited production certificate" means a certificate
4issued by the Department certifying that the production is an
5accredited production that meets the guidelines of this Act.
6    "Applicant" means a taxpayer that is a film production
7company that is operating or has operated an accredited
8production located within the State of Illinois and that (i)
9owns the copyright in the accredited production throughout the
10Illinois production period or (ii) has contracted directly
11with the owner of the copyright in the accredited production
12or a person acting on behalf of the owner to provide services
13for the production, where the owner of the copyright is not an
14eligible production corporation.
15    "Credit" means:
16        (1) for an accredited production approved by the
17    Department on or before January 1, 2005 and commencing
18    before May 1, 2006, the amount equal to 25% of the Illinois
19    labor expenditure approved by the Department. The
20    applicant is deemed to have paid, on its balance due day
21    for the year, an amount equal to 25% of its qualified
22    Illinois labor expenditure for the tax year. For Illinois
23    labor expenditures generated by the employment of
24    residents of geographic areas of high poverty or high
25    unemployment, as determined by the Department, in an
26    accredited production commencing before May 1, 2006 and

 

 

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1    approved by the Department after January 1, 2005, the
2    applicant shall receive an enhanced credit of 10% in
3    addition to the 25% credit; and
4        (2) for an accredited production commencing on or
5    after May 1, 2006, the amount equal to:
6            (i) 20% of the Illinois production spending for
7        the taxable year; plus
8            (ii) 15% of the Illinois labor expenditures
9        generated by the employment of residents of geographic
10        areas of high poverty or high unemployment, as
11        determined by the Department; and
12        (3) for an accredited production commencing on or
13    after January 1, 2009, the amount equal to:
14            (i) 30% of the Illinois production spending for
15        the taxable year; plus
16            (ii) 15% of the Illinois labor expenditures
17        generated by the employment of residents of geographic
18        areas of high poverty or high unemployment, as
19        determined by the Department.
20    "Department" means the Department of Commerce and Economic
21Opportunity.
22    "Director" means the Director of Commerce and Economic
23Opportunity.
24    "Illinois labor expenditure" means salary or wages paid to
25employees of the applicant for services on the accredited
26production.

 

 

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1    To qualify as an Illinois labor expenditure, the
2expenditure must be:
3        (1) Reasonable in the circumstances.
4        (2) Included in the federal income tax basis of the
5    property.
6        (3) Incurred by the applicant for services on or after
7    January 1, 2004.
8        (4) Incurred for the production stages of the
9    accredited production, from the final script stage to the
10    end of the post-production stage.
11        (5) Limited to the first $25,000 of wages paid or
12    incurred to each employee of a production commencing
13    before May 1, 2006 and the first $100,000 of wages paid or
14    incurred to each employee of a production commencing on or
15    after May 1, 2006 and prior to July 1, 2022. For
16    productions commencing on or after July 1, 2022, limited
17    to the first $500,000 of wages paid or incurred to each
18    nonresident or resident employee of a production company
19    or loan out company that provides in-State services to a
20    production, whether those wages are paid or incurred by
21    the production company, loan out company, or both, subject
22    to withholding payments provided for in Article 7 of the
23    Illinois Income Tax Act. For purposes of calculating
24    Illinois labor expenditures for a television series, the
25    nonresident wage limitations provided under this
26    subparagraph are applied to the entire season.

 

 

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1        (6) For a production commencing before May 1, 2006,
2    exclusive of the salary or wages paid to or incurred for
3    the 2 highest paid employees of the production.
4        (7) Directly attributable to the accredited
5    production.
6        (8) (Blank).
7        (9) Prior to July 1, 2022, paid Paid to persons
8    resident in Illinois at the time the payments were made.
9    For a production commencing on or after July 1, 2022, paid
10    to persons resident in Illinois and nonresidents at the
11    time the payments were made. For purposes of this
12    subparagraph, only wages paid to nonresidents working in
13    the following positions shall be considered Illinois labor
14    expenditures: Writer, Director, Director of Photography,
15    Production Designer, Costume Designer, Production
16    Accountant, VFX Supervisor, Editor, Composer, and Actor,
17    subject to the limitations set forth under this
18    subparagraph. For an accredited Illinois production
19    spending of $25,000,000 or less, no more than 2
20    nonresident actors' wages shall qualify as an Illinois
21    labor expenditure. For an accredited production with
22    Illinois production spending of more than $25,000,000, no
23    more than 4 nonresident actor's wages shall qualify as
24    Illinois labor expenditures.
25        (10) Paid for services rendered in Illinois.
26    "Illinois production spending" means the expenses incurred

 

 

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1by the applicant for an accredited production, including,
2without limitation, all of the following:
3        (1) expenses to purchase, from vendors within
4    Illinois, tangible personal property that is used in the
5    accredited production;
6        (2) expenses to acquire services, from vendors in
7    Illinois, for film production, editing, or processing; and
8        (3) for a production commencing before July 1, 2022,
9    the compensation, not to exceed $100,000 for any one
10    employee, for contractual or salaried employees who are
11    Illinois residents performing services with respect to the
12    accredited production. For a production commencing on or
13    after July 1, 2022, the compensation, not to exceed
14    $500,000 for any one employee, for contractual or salaried
15    employees who are Illinois residents or nonresident
16    employees, subject to the limitations set forth under
17    Section 10 of this Act.
18    "Loan out company" means a personal service corporation or
19other entity that is under contract with the taxpayer to
20provide specified individual personnel, such as artists, crew,
21actors, producers, or directors for the performance of
22services used directly in a production. "Loan out company"
23does not include entities contracted with by the taxpayer to
24provide goods or ancillary contractor services such as
25catering, construction, trailers, equipment, or
26transportation.

 

 

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1    "Qualified production facility" means stage facilities in
2the State in which television shows and films are or are
3intended to be regularly produced and that contain at least
4one sound stage of at least 15,000 square feet.
5    Rulemaking authority to implement Public Act 95-1006, if
6any, is conditioned on the rules being adopted in accordance
7with all provisions of the Illinois Administrative Procedure
8Act and all rules and procedures of the Joint Committee on
9Administrative Rules; any purported rule not so adopted, for
10whatever reason, is unauthorized.
11(Source: P.A. 102-558, eff. 8-20-21.)
 
12    (35 ILCS 16/42)
13    Sec. 42. Sunset of credits. The application of credits
14awarded pursuant to this Act shall be limited by a reasonable
15and appropriate sunset date. A taxpayer shall not be awarded
16any new credits entitled to take a credit awarded pursuant to
17this Act for tax years beginning on or after January 1, 2027.
18(Source: P.A. 101-178, eff. 8-1-19.)
 
19    (35 ILCS 16/46 new)
20    Sec. 46. Illinois Production Workforce Development Fund.
21    (a) The Illinois Production Workforce Development Fund is
22created as a special fund in the State Treasury. Beginning
23July 1, 2022, amounts paid to the Department of Commerce and
24Economic Opportunity pursuant to Section 213 of the Illinois

 

 

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1Income Tax Act shall be deposited into the Fund. The Fund shall
2be used exclusively to provide grants to community-based
3organizations, labor organizations, private and public
4universities, community colleges, and other organizations and
5institutions that may be deemed appropriate by the Department
6to administer workforce training programs that support efforts
7to recruit, hire, promote, retain, develop, and train a
8diverse and inclusive workforce in the film industry.
9    (b) Pursuant to Section 213 of the Illinois Income Tax
10Act, the Fund shall receive deposits in amounts not to exceed
110.25% of the amount of each credit certificate issued that is
12not calculated on out-of-state wages and transferred or
13claimed on an Illinois tax return in the quarter such credit
14was transferred or claimed. In addition, such amount shall
15also include 2.5% of the credit amount calculated on wages
16paid to nonresidents that is transferred or claimed on an
17Illinois tax return in the quarter such credit was transferred
18or claimed.
19    (c) At the request of the Department, the State
20Comptroller and the State Treasurer may advance amounts to the
21Fund on an annual basis not to exceed $1,000,000 in any fiscal
22year. The fund from which the moneys are advanced shall be
23reimbursed in the same fiscal year for any such advance
24payments as described in this Section. The method of
25reimbursement shall be set forth in rules.
26    (d) Of the appropriated funds in a given fiscal year, 50%

 

 

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1of the appropriated funds shall be reserved for organizations
2that meet one of the following criteria. The organization is:
3(1) a minority-owned business, as defined by the Business
4Enterprise for Minorities, Women, and Persons with
5Disabilities Act; (2) located in an underserved area, as
6defined by the Economic Development for a Growing Economy Tax
7Credit Act; or (3) on an annual basis, training a cohort of
8program participants where at least 50% of the program
9participants are either a minority person, as defined by the
10Business Enterprise for Minorities, Women, and Persons with
11Disabilities Act, or reside in an underserved area, as defined
12by the Economic Development for a Growing Economy Tax Credit
13Act.
14    (e) The Illinois Production Workforce Development Fund
15shall be administered by the Department. The Department may
16adopt rules necessary to administer the provisions of this
17Section.
18    (f) Notwithstanding any other law to the contrary, the
19Illinois Production Workforce Development Fund is not subject
20to sweeps, administrative charge-backs, or any other fiscal or
21budgetary maneuver that would in any way transfer any amounts
22from the Illinois Production Workforce Development Fund.
23    (g) By June 30 of each fiscal year, the Department must
24submit to the General Assembly a report that includes the
25following information: (1) an identification of the
26organizations and institutions that received funding to

 

 

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1administer workforce training programs during the fiscal year;
2(2) the number of total persons trained and the number of
3persons trained per workforce training program in the fiscal
4year; and (3) in the aggregate, per organization, the number
5of persons identified as a minority person or that reside in an
6underserved area that received training in the fiscal year.
 
7    Section 10-90. The State Finance Act is amended by adding
8Section 5.970 as follows:
 
9    (30 ILCS 105/5.970 new)
10    Sec. 5.970. The Illinois Production Workforce Development
11Fund.
 
12
ARTICLE 15. LIVE THEATER TAX CREDIT

 
13    Section 15-5. The Live Theater Production Tax Credit Act
14is amended by changing Section 10-20 as follows:
 
15    (35 ILCS 17/10-20)
16    Sec. 10-20. Tax credit award. Subject to the conditions
17set forth in this Act, an applicant is entitled to a tax credit
18award as approved by the Department for qualifying Illinois
19labor expenditures and Illinois production spending for each
20tax year in which the applicant is awarded an accredited
21theater production certificate issued by the Department. The

 

 

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1amount of tax credits awarded pursuant to this Act shall not
2exceed $2,000,000 for State fiscal years ending on or before
3June 30, 2022 and ending on or after June 30, 2024. Due to the
4impact of the COVID-19 pandemic, for the State fiscal year
5ending on June 30, 2023, the amount of tax credits awarded
6pursuant to this Act shall not exceed $4,000,000. For the
7State fiscal year ending on June 30, 2023, credits awarded
8under this Act in excess of $2,000,000 must be awarded to
9applicants with Illinois production spending of not less than
10$2,500,000, as shown on the applicant's application for the
11credit. in any fiscal year. Credits shall be awarded on a
12first-come, first-served basis. Notwithstanding the foregoing,
13if the amount of credits applied for in any fiscal year exceeds
14the amount authorized to be awarded under this Section, the
15excess credit amount shall be awarded in the next fiscal year
16in which credits remain available for award and shall be
17treated as having been applied for on the first day of that
18fiscal year.
19(Source: P.A. 97-636, eff. 6-1-12.)
 
20
ARTICLE 20. BIODIESEL

 
21    Section 20-5. The Use Tax Act is amended by changing
22Sections 3-10 and 3-41 and by adding Sections 3-5.1 and 3-42.5
23as follows:
 

 

 

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1    (35 ILCS 105/3-5.1 new)
2    Sec. 3-5.1. Biodiesel, renewable diesel, and biodiesel
3blends.
4    (a) On and after January 1, 2024 and on or before December
531, 2030, the taxes imposed by this Act, the Service Use Tax
6Act, the Service Occupation Tax Act, or the Retailers'
7Occupation Tax Act apply to 100% of the proceeds of sales of
8(i) biodiesel blends with no less than 1% and no more than 10%
9of biodiesel and (ii) any diesel fuel containing no less than
101% and no more than 10% of renewable diesel.
11    (b) From January 1, 2024 through March 31, 2024, the taxes
12imposed by this Act, the Service Use Tax Act, the Service
13Occupation Tax Act, or the Retailers' Occupation Tax Act do
14not apply to the proceeds of sales of any diesel fuel
15containing more than 10% biodiesel or renewable diesel.
16    (c) From April 1, 2024 through November 30, 2024, the
17taxes imposed by this Act, the Service Use Tax Act, the Service
18Occupation Tax Act, or the Retailers' Occupation Tax Act do
19not apply to the proceeds of sales of any diesel fuel
20containing more than 13% biodiesel or renewable diesel.
21    (d) From December 1, 2024 through March 31, 2025, the
22taxes imposed by this Act, the Service Use Tax Act, the Service
23Occupation Tax Act, or the Retailers' Occupation Tax Act do
24not apply to the proceeds of sales of any diesel fuel
25containing more than 10% biodiesel or renewable diesel.
26    (e) From April 1, 2025 through November 30, 2025, the

 

 

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1taxes imposed by this Act, the Service Use Tax Act, the Service
2Occupation Tax Act, or the Retailers' Occupation Tax Act do
3not apply to the proceeds of sales of any diesel fuel
4containing more than 16% biodiesel or renewable diesel.
5    (f) From December 1, 2025 through March 31, 2026, the
6taxes imposed by this Act, the Service Use Tax Act, the Service
7Occupation Tax Act, or the Retailers' Occupation Tax Act do
8not apply to the proceeds of sales of any diesel fuel
9containing more than 10% biodiesel or renewable diesel.
10    (g) On and after April 1, 2026 and on or before November
1130, 2030, the taxes imposed by this Act, the Service Use Tax
12Act, the Service Occupation Tax Act, or the Retailers'
13Occupation Tax Act do not apply to the proceeds of sales of any
14diesel fuel containing more than 19% biodiesel or renewable
15diesel; except that, from December 1 of calendar years 2026,
162027, 2028, and 2029 through March 31 of the following
17calendar year, and from December 1, 2030 through December 31,
182030, the taxes imposed by this Act, the Service Use Tax Act,
19the Service Occupation Tax Act, or the Retailers' Occupation
20Tax Act do not apply to the proceeds of sales of any diesel
21fuel containing more than 10% biodiesel or renewable diesel.
22    (h) This Section is exempt from the provisions of Section
233-90 of this Act, Section 3-75 of the Service Use Tax Act,
24Section 3-55 of the Service Occupation Tax Act, and Section
252-70 of the Retailers' Occupation Tax Act.
 

 

 

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1    (35 ILCS 105/3-10)
2    Sec. 3-10. Rate of tax. Unless otherwise provided in this
3Section, the tax imposed by this Act is at the rate of 6.25% of
4either the selling price or the fair market value, if any, of
5the tangible personal property. In all cases where property
6functionally used or consumed is the same as the property that
7was purchased at retail, then the tax is imposed on the selling
8price of the property. In all cases where property
9functionally used or consumed is a by-product or waste product
10that has been refined, manufactured, or produced from property
11purchased at retail, then the tax is imposed on the lower of
12the fair market value, if any, of the specific property so used
13in this State or on the selling price of the property purchased
14at retail. For purposes of this Section "fair market value"
15means the price at which property would change hands between a
16willing buyer and a willing seller, neither being under any
17compulsion to buy or sell and both having reasonable knowledge
18of the relevant facts. The fair market value shall be
19established by Illinois sales by the taxpayer of the same
20property as that functionally used or consumed, or if there
21are no such sales by the taxpayer, then comparable sales or
22purchases of property of like kind and character in Illinois.
23    Beginning on July 1, 2000 and through December 31, 2000,
24with respect to motor fuel, as defined in Section 1.1 of the
25Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
26the Use Tax Act, the tax is imposed at the rate of 1.25%.

 

 

10200HB1539sam001- 40 -LRB102 03555 HLH 39048 a

1    Beginning on August 6, 2010 through August 15, 2010, with
2respect to sales tax holiday items as defined in Section 3-6 of
3this Act, the tax is imposed at the rate of 1.25%.
4    With respect to gasohol, the tax imposed by this Act
5applies to (i) 70% of the proceeds of sales made on or after
6January 1, 1990, and before July 1, 2003, (ii) 80% of the
7proceeds of sales made on or after July 1, 2003 and on or
8before July 1, 2017, and (iii) 100% of the proceeds of sales
9made thereafter. If, at any time, however, the tax under this
10Act on sales of gasohol is imposed at the rate of 1.25%, then
11the tax imposed by this Act applies to 100% of the proceeds of
12sales of gasohol made during that time.
13    With respect to majority blended ethanol fuel, the tax
14imposed by this Act does not apply to the proceeds of sales
15made on or after July 1, 2003 and on or before December 31,
162023 but applies to 100% of the proceeds of sales made
17thereafter.
18    With respect to biodiesel blends with no less than 1% and
19no more than 10% biodiesel, the tax imposed by this Act applies
20to (i) 80% of the proceeds of sales made on or after July 1,
212003 and on or before December 31, 2018 and (ii) 100% of the
22proceeds of sales made after December 31, 2018 and before
23January 1, 2024. On and after January 1, 2024 and on or before
24December 31, 2030, the taxation of biodiesel, renewable
25diesel, and biodiesel blends shall be as provided in Section
263-5.1 thereafter. If, at any time, however, the tax under this

 

 

10200HB1539sam001- 41 -LRB102 03555 HLH 39048 a

1Act on sales of biodiesel blends with no less than 1% and no
2more than 10% biodiesel is imposed at the rate of 1.25%, then
3the tax imposed by this Act applies to 100% of the proceeds of
4sales of biodiesel blends with no less than 1% and no more than
510% biodiesel made during that time.
6    With respect to 100% biodiesel and biodiesel blends with
7more than 10% but no more than 99% biodiesel, the tax imposed
8by this Act does not apply to the proceeds of sales made on or
9after July 1, 2003 and on or before December 31, 2023 but
10applies to 100% of the proceeds of sales made thereafter. On
11and after January 1, 2024 and on or before December 31, 2030,
12the taxation of biodiesel, renewable diesel, and biodiesel
13blends shall be as provided in Section 3-5.1.
14    With respect to food for human consumption that is to be
15consumed off the premises where it is sold (other than
16alcoholic beverages, food consisting of or infused with adult
17use cannabis, soft drinks, and food that has been prepared for
18immediate consumption) and prescription and nonprescription
19medicines, drugs, medical appliances, products classified as
20Class III medical devices by the United States Food and Drug
21Administration that are used for cancer treatment pursuant to
22a prescription, as well as any accessories and components
23related to those devices, modifications to a motor vehicle for
24the purpose of rendering it usable by a person with a
25disability, and insulin, blood sugar testing materials,
26syringes, and needles used by human diabetics, the tax is

 

 

10200HB1539sam001- 42 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 43 -LRB102 03555 HLH 39048 a

1off the premises where it is sold" includes all food sold
2through a vending machine, except soft drinks, candy, and food
3products that are dispensed hot from a vending machine,
4regardless of the location of the vending machine.
5    Notwithstanding any other provisions of this Act,
6beginning September 1, 2009, "food for human consumption that
7is to be consumed off the premises where it is sold" does not
8include candy. For purposes of this Section, "candy" means a
9preparation of sugar, honey, or other natural or artificial
10sweeteners in combination with chocolate, fruits, nuts or
11other ingredients or flavorings in the form of bars, drops, or
12pieces. "Candy" does not include any preparation that contains
13flour or requires refrigeration.
14    Notwithstanding any other provisions of this Act,
15beginning September 1, 2009, "nonprescription medicines and
16drugs" does not include grooming and hygiene products. For
17purposes of this Section, "grooming and hygiene products"
18includes, but is not limited to, soaps and cleaning solutions,
19shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
20lotions and screens, unless those products are available by
21prescription only, regardless of whether the products meet the
22definition of "over-the-counter-drugs". For the purposes of
23this paragraph, "over-the-counter-drug" means a drug for human
24use that contains a label that identifies the product as a drug
25as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
26label includes:

 

 

10200HB1539sam001- 44 -LRB102 03555 HLH 39048 a

1        (A) A "Drug Facts" panel; or
2        (B) A statement of the "active ingredient(s)" with a
3    list of those ingredients contained in the compound,
4    substance or preparation.
5    Beginning on the effective date of this amendatory Act of
6the 98th General Assembly, "prescription and nonprescription
7medicines and drugs" includes medical cannabis purchased from
8a registered dispensing organization under the Compassionate
9Use of Medical Cannabis Program Act.
10    As used in this Section, "adult use cannabis" means
11cannabis subject to tax under the Cannabis Cultivation
12Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
13and does not include cannabis subject to tax under the
14Compassionate Use of Medical Cannabis Program Act.
15    If the property that is purchased at retail from a
16retailer is acquired outside Illinois and used outside
17Illinois before being brought to Illinois for use here and is
18taxable under this Act, the "selling price" on which the tax is
19computed shall be reduced by an amount that represents a
20reasonable allowance for depreciation for the period of prior
21out-of-state use.
22(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
23102-4, eff. 4-27-21.)
 
24    (35 ILCS 105/3-41)
25    Sec. 3-41. Biodiesel. "Biodiesel" means a renewable diesel

 

 

10200HB1539sam001- 45 -LRB102 03555 HLH 39048 a

1fuel that is not a hydrocarbon fuel and that is derived from
2biomass that is intended for use in diesel engines.
3(Source: P.A. 93-17, eff. 6-11-03.)
 
4    (35 ILCS 105/3-42.5 new)
5    Sec. 3-42.5. Renewable diesel. "Renewable diesel" means a
6diesel fuel that is a hydrocarbon fuel derived from biomass
7meeting the requirements of the latest version of ASTM
8standards D975 or D396. Fuels that have been co-processed are
9not considered renewable diesel.
 
10    Section 20-10. The Service Use Tax Act is amended by
11changing Section 3-10 as follows:
 
12    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
13    Sec. 3-10. Rate of tax. Unless otherwise provided in this
14Section, the tax imposed by this Act is at the rate of 6.25% of
15the selling price of tangible personal property transferred as
16an incident to the sale of service, but, for the purpose of
17computing this tax, in no event shall the selling price be less
18than the cost price of the property to the serviceman.
19    Beginning on July 1, 2000 and through December 31, 2000,
20with respect to motor fuel, as defined in Section 1.1 of the
21Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
22the Use Tax Act, the tax is imposed at the rate of 1.25%.
23    With respect to gasohol, as defined in the Use Tax Act, the

 

 

10200HB1539sam001- 46 -LRB102 03555 HLH 39048 a

1tax imposed by this Act applies to (i) 70% of the selling price
2of property transferred as an incident to the sale of service
3on or after January 1, 1990, and before July 1, 2003, (ii) 80%
4of the selling price of property transferred as an incident to
5the sale of service on or after July 1, 2003 and on or before
6July 1, 2017, and (iii) 100% of the selling price thereafter.
7If, at any time, however, the tax under this Act on sales of
8gasohol, as defined in the Use Tax Act, is imposed at the rate
9of 1.25%, then the tax imposed by this Act applies to 100% of
10the proceeds of sales of gasohol made during that time.
11    With respect to majority blended ethanol fuel, as defined
12in the Use Tax Act, the tax imposed by this Act does not apply
13to the selling price of property transferred as an incident to
14the sale of service on or after July 1, 2003 and on or before
15December 31, 2023 but applies to 100% of the selling price
16thereafter.
17    With respect to biodiesel blends, as defined in the Use
18Tax Act, with no less than 1% and no more than 10% biodiesel,
19the tax imposed by this Act applies to (i) 80% of the selling
20price of property transferred as an incident to the sale of
21service on or after July 1, 2003 and on or before December 31,
222018 and (ii) 100% of the proceeds of the selling price after
23December 31, 2018 and before January 1, 2024. On and after
24January 1, 2024 and on or before December 31, 2030, the
25taxation of biodiesel, renewable diesel, and biodiesel blends
26shall be as provided in Section 3-5.1 of the Use Tax

 

 

10200HB1539sam001- 47 -LRB102 03555 HLH 39048 a

1Act thereafter. If, at any time, however, the tax under this
2Act on sales of biodiesel blends, as defined in the Use Tax
3Act, with no less than 1% and no more than 10% biodiesel is
4imposed at the rate of 1.25%, then the tax imposed by this Act
5applies to 100% of the proceeds of sales of biodiesel blends
6with no less than 1% and no more than 10% biodiesel made during
7that time.
8    With respect to 100% biodiesel, as defined in the Use Tax
9Act, and biodiesel blends, as defined in the Use Tax Act, with
10more than 10% but no more than 99% biodiesel, the tax imposed
11by this Act does not apply to the proceeds of the selling price
12of property transferred as an incident to the sale of service
13on or after July 1, 2003 and on or before December 31, 2023 but
14applies to 100% of the selling price thereafter. 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.
18    At the election of any registered serviceman made for each
19fiscal year, sales of service in which the aggregate annual
20cost price of tangible personal property transferred as an
21incident to the sales of service is less than 35%, or 75% in
22the case of servicemen transferring prescription drugs or
23servicemen engaged in graphic arts production, of the
24aggregate annual total gross receipts from all sales of
25service, the tax imposed by this Act shall be based on the
26serviceman's cost price of the tangible personal property

 

 

10200HB1539sam001- 48 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 49 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 50 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 51 -LRB102 03555 HLH 39048 a

1    list of those ingredients contained in the compound,
2    substance or preparation.
3    Beginning on January 1, 2014 (the effective date of Public
4Act 98-122), "prescription and nonprescription medicines and
5drugs" includes medical cannabis purchased from a registered
6dispensing organization under the Compassionate Use of Medical
7Cannabis Program Act.
8    As used in this Section, "adult use cannabis" means
9cannabis subject to tax under the Cannabis Cultivation
10Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
11and does not include cannabis subject to tax under the
12Compassionate Use of Medical Cannabis Program Act.
13    If the property that is acquired from a serviceman is
14acquired outside Illinois and used outside Illinois before
15being brought to Illinois for use here and is taxable under
16this Act, the "selling price" on which the tax is computed
17shall be reduced by an amount that represents a reasonable
18allowance for depreciation for the period of prior
19out-of-state use.
20(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
21102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
22    Section 20-15. The Service Occupation Tax Act is amended
23by changing Section 3-10 as follows:
 
24    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)

 

 

10200HB1539sam001- 52 -LRB102 03555 HLH 39048 a

1    Sec. 3-10. Rate of tax. Unless otherwise provided in this
2Section, the tax imposed by this Act is at the rate of 6.25% of
3the "selling price", as defined in Section 2 of the Service Use
4Tax Act, of the tangible personal property. For the purpose of
5computing this tax, in no event shall the "selling price" be
6less than the cost price to the serviceman of the tangible
7personal property transferred. The selling price of each item
8of tangible personal property transferred as an incident of a
9sale of service may be shown as a distinct and separate item on
10the serviceman's billing to the service customer. If the
11selling price is not so shown, the selling price of the
12tangible personal property is deemed to be 50% of the
13serviceman's entire billing to the service customer. When,
14however, a serviceman contracts to design, develop, and
15produce special order machinery or equipment, the tax imposed
16by this Act shall be based on the serviceman's cost price of
17the tangible personal property transferred incident to the
18completion of the contract.
19    Beginning on July 1, 2000 and through December 31, 2000,
20with respect to motor fuel, as defined in Section 1.1 of the
21Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
22the Use Tax Act, the tax is imposed at the rate of 1.25%.
23    With respect to gasohol, as defined in the Use Tax Act, the
24tax imposed by this Act shall apply to (i) 70% of the cost
25price of property transferred as an incident to the sale of
26service on or after January 1, 1990, and before July 1, 2003,

 

 

10200HB1539sam001- 53 -LRB102 03555 HLH 39048 a

1(ii) 80% of the selling price of property transferred as an
2incident to the sale of service on or after July 1, 2003 and on
3or before July 1, 2017, and (iii) 100% of the cost price
4thereafter. If, at any time, however, the tax under this Act on
5sales of gasohol, as defined in the Use Tax Act, is imposed at
6the rate of 1.25%, then the tax imposed by this Act applies to
7100% of the proceeds of sales of gasohol made during that time.
8    With respect to majority blended ethanol fuel, as defined
9in the Use Tax Act, the tax imposed by this Act does not apply
10to the selling price of property transferred as an incident to
11the sale of service on or after July 1, 2003 and on or before
12December 31, 2023 but applies to 100% of the selling price
13thereafter.
14    With respect to biodiesel blends, as defined in the Use
15Tax Act, with no less than 1% and no more than 10% biodiesel,
16the tax imposed by this Act applies to (i) 80% of the selling
17price of property transferred as an incident to the sale of
18service on or after July 1, 2003 and on or before December 31,
192018 and (ii) 100% of the proceeds of the selling price after
20December 31, 2018 and before January 1, 2024. On and after
21January 1, 2024 and on or before December 31, 2030, the
22taxation of biodiesel, renewable diesel, and biodiesel blends
23shall be as provided in Section 3-5.1 of the Use Tax
24Act thereafter. If, at any time, however, the tax under this
25Act on sales of biodiesel blends, as defined in the Use Tax
26Act, with no less than 1% and no more than 10% biodiesel is

 

 

10200HB1539sam001- 54 -LRB102 03555 HLH 39048 a

1imposed at the rate of 1.25%, then the tax imposed by this Act
2applies to 100% of the proceeds of sales of biodiesel blends
3with no less than 1% and no more than 10% biodiesel made during
4that time.
5    With respect to 100% biodiesel, as defined in the Use Tax
6Act, and biodiesel blends, as defined in the Use Tax Act, with
7more than 10% but no more than 99% biodiesel material, the tax
8imposed by this Act does not apply to the proceeds of the
9selling price of property transferred as an incident to the
10sale of service on or after July 1, 2003 and on or before
11December 31, 2023 but applies to 100% of the selling price
12thereafter. On and after January 1, 2024 and on or before
13December 31, 2030, the taxation of biodiesel, renewable
14diesel, and biodiesel blends shall be as provided in Section
153-5.1 of the Use Tax Act.
16    At the election of any registered serviceman made for each
17fiscal year, sales of service in which the aggregate annual
18cost price of tangible personal property transferred as an
19incident to the sales of service is less than 35%, or 75% in
20the case of servicemen transferring prescription drugs or
21servicemen engaged in graphic arts production, of the
22aggregate annual total gross receipts from all sales of
23service, the tax imposed by this Act shall be based on the
24serviceman's cost price of the tangible personal property
25transferred incident to the sale of those services.
26    The tax shall be imposed at the rate of 1% on food prepared

 

 

10200HB1539sam001- 55 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 56 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 57 -LRB102 03555 HLH 39048 a

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

 

 

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1    Beginning on January 1, 2014 (the effective date of Public
2Act 98-122), "prescription and nonprescription medicines and
3drugs" includes medical cannabis purchased from a registered
4dispensing organization under the Compassionate Use of Medical
5Cannabis Program Act.
6    As used in this Section, "adult use cannabis" means
7cannabis subject to tax under the Cannabis Cultivation
8Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
9and does not include cannabis subject to tax under the
10Compassionate Use of Medical Cannabis Program Act.
11(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
12102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
13    Section 20-20. The Retailers' Occupation Tax Act is
14amended by changing Section 2-10 as follows:
 
15    (35 ILCS 120/2-10)
16    Sec. 2-10. Rate of tax. Unless otherwise provided in this
17Section, the tax imposed by this Act is at the rate of 6.25% of
18gross receipts from sales of tangible personal property made
19in the course of business.
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    Beginning on August 6, 2010 through August 15, 2010, with

 

 

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1respect to sales tax holiday items as defined in Section 2-8 of
2this Act, the tax is imposed at the rate of 1.25%.
3    Within 14 days after the effective date of this amendatory
4Act of the 91st General Assembly, each retailer of motor fuel
5and gasohol shall cause the following notice to be posted in a
6prominently visible place on each retail dispensing device
7that is used to dispense motor fuel or gasohol in the State of
8Illinois: "As of July 1, 2000, the State of Illinois has
9eliminated the State's share of sales tax on motor fuel and
10gasohol through December 31, 2000. The price on this pump
11should reflect the elimination of the tax." The notice shall
12be printed in bold print on a sign that is no smaller than 4
13inches by 8 inches. The sign shall be clearly visible to
14customers. Any retailer who fails to post or maintain a
15required sign through December 31, 2000 is guilty of a petty
16offense for which the fine shall be $500 per day per each
17retail premises where a violation occurs.
18    With respect to gasohol, as defined in the Use Tax Act, the
19tax imposed by this Act applies to (i) 70% of the proceeds of
20sales made on or after January 1, 1990, and before July 1,
212003, (ii) 80% of the proceeds of sales made on or after July
221, 2003 and on or before July 1, 2017, and (iii) 100% of the
23proceeds of sales made thereafter. If, at any time, however,
24the tax under this Act on sales of gasohol, as defined in the
25Use Tax Act, is imposed at the rate of 1.25%, then the tax
26imposed by this Act applies to 100% of the proceeds of sales of

 

 

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1gasohol made 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 proceeds of sales made on or after July 1, 2003 and on
5or before December 31, 2023 but applies to 100% of the proceeds
6of sales made thereafter.
7    With respect to biodiesel blends, as defined in the Use
8Tax Act, with no less than 1% and no more than 10% biodiesel,
9the tax imposed by this Act applies to (i) 80% of the proceeds
10of sales made on or after July 1, 2003 and on or before
11December 31, 2018 and (ii) 100% of the proceeds of sales made
12after December 31, 2018 and before January 1, 2024. On and
13after January 1, 2024 and on or before December 31, 2030, the
14taxation of biodiesel, renewable diesel, and biodiesel blends
15shall be as provided in Section 3-5.1 of the Use Tax Act
16thereafter. If, at any time, however, the tax under this Act on
17sales of biodiesel blends, as defined in the Use Tax Act, with
18no less than 1% and no more than 10% biodiesel is imposed at
19the rate of 1.25%, then the tax imposed by this Act applies to
20100% of the proceeds of sales of biodiesel blends with no less
21than 1% and no more than 10% biodiesel made during that time.
22    With respect to 100% biodiesel, as defined in the Use Tax
23Act, and biodiesel blends, as defined in the Use Tax Act, with
24more than 10% but no more than 99% biodiesel, the tax imposed
25by this Act does not apply to the proceeds of sales made on or
26after July 1, 2003 and on or before December 31, 2023 but

 

 

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1applies to 100% of the proceeds of sales made thereafter. On
2and after January 1, 2024 and on or before December 31, 2030,
3the taxation of biodiesel, renewable diesel, and biodiesel
4blends shall be as provided in Section 3-5.1 of the Use Tax
5Act.
6    With respect to food for human consumption that is to be
7consumed off the premises where it is sold (other than
8alcoholic beverages, food consisting of or infused with adult
9use cannabis, soft drinks, and food that has been prepared for
10immediate consumption) and prescription and nonprescription
11medicines, drugs, medical appliances, products classified as
12Class III medical devices by the United States Food and Drug
13Administration that are used for cancer treatment pursuant to
14a prescription, as well as any accessories and components
15related to those devices, modifications to a motor vehicle for
16the purpose of rendering it usable by a person with a
17disability, and insulin, blood sugar testing materials,
18syringes, and needles used by human diabetics, the tax is
19imposed at the rate of 1%. For the purposes of this Section,
20until September 1, 2009: the term "soft drinks" means any
21complete, finished, ready-to-use, non-alcoholic drink, whether
22carbonated or not, including but not limited to soda water,
23cola, fruit juice, vegetable juice, carbonated water, and all
24other preparations commonly known as soft drinks of whatever
25kind or description that are contained in any closed or sealed
26bottle, can, carton, or container, regardless of size; but

 

 

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

 

 

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1preparation of sugar, honey, or other natural or artificial
2sweeteners in combination with chocolate, fruits, nuts or
3other ingredients or flavorings in the form of bars, drops, or
4pieces. "Candy" does not include any preparation that contains
5flour or requires refrigeration.
6    Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "nonprescription medicines and
8drugs" does not include grooming and hygiene products. For
9purposes of this Section, "grooming and hygiene products"
10includes, but is not limited to, soaps and cleaning solutions,
11shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
12lotions and screens, unless those products are available by
13prescription only, regardless of whether the products meet the
14definition of "over-the-counter-drugs". For the purposes of
15this paragraph, "over-the-counter-drug" means a drug for human
16use that contains a label that identifies the product as a drug
17as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
18label includes:
19        (A) A "Drug Facts" panel; or
20        (B) A statement of the "active ingredient(s)" with a
21    list of those ingredients contained in the compound,
22    substance or preparation.
23    Beginning on the effective date of this amendatory Act of
24the 98th General Assembly, "prescription and nonprescription
25medicines and drugs" includes medical cannabis purchased from
26a registered dispensing organization under the Compassionate

 

 

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1Use of Medical Cannabis Program Act.
2    As used in this Section, "adult use cannabis" means
3cannabis subject to tax under the Cannabis Cultivation
4Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
5and does not include cannabis subject to tax under the
6Compassionate Use of Medical Cannabis Program Act.
7(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
8102-4, eff. 4-27-21.)
 
9    Section 20-25. The Motor Fuel Tax Law is amended by adding
10Section 3d as follows:
 
11    (35 ILCS 505/3d new)
12    Sec. 3d. Right to blend.
13    (a) A distributor who is properly licensed and permitted
14as a blender pursuant to this Act may blend petroleum-based
15diesel fuel with biodiesel and sell the blended or unblended
16product on any premises owned and operated by the distributor
17for the purpose of supporting or facilitating the retail sale
18of motor fuel.
19    (b) A refiner or supplier of petroleum-based diesel fuel
20or biodiesel shall not refuse to sell or transport to a
21distributor who is properly licensed and permitted as a
22blender pursuant to this Act any petroleum-based diesel fuel
23or biodiesel based on the distributor's or dealer's intent to
24use that product for blending.
 

 

 

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1
ARTICLE 25. HOSPITALS

 
2    Section 25-5. The Illinois Income Tax Act is amended by
3changing Section 223 as follows:
 
4    (35 ILCS 5/223)
5    Sec. 223. Hospital credit.
6    (a) For tax years ending on or after December 31, 2012 and
7ending on or before December 31, 2027 December 31, 2022, a
8taxpayer that is the owner of a hospital licensed under the
9Hospital Licensing Act, but not including an organization that
10is exempt from federal income taxes under the Internal Revenue
11Code, is entitled to a credit against the taxes imposed under
12subsections (a) and (b) of Section 201 of this Act in an amount
13equal to the lesser of the amount of real property taxes paid
14during the tax year on real property used for hospital
15purposes during the prior tax year or the cost of free or
16discounted services provided during the tax year pursuant to
17the hospital's charitable financial assistance policy,
18measured at cost.
19    (b) If the taxpayer is a partnership or Subchapter S
20corporation, the credit is allowed to the partners or
21shareholders in accordance with the determination of income
22and distributive share of income under Sections 702 and 704
23and Subchapter S of the Internal Revenue Code. A transfer of

 

 

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1this credit may be made by the taxpayer earning the credit
2within one year after the credit is earned in accordance with
3rules adopted by the Department. The Department shall
4prescribe rules to enforce and administer provisions of this
5Section. If the amount of the credit exceeds the tax liability
6for the year, then the excess credit may be carried forward and
7applied to the tax liability of the 5 taxable years following
8the excess credit year. The credit shall be applied to the
9earliest year for which there is a tax liability. If there are
10credits from more than one tax year that are available to
11offset a liability, the earlier credit shall be applied first.
12In no event shall a credit under this Section reduce the
13taxpayer's liability to less than zero.
14(Source: P.A. 100-587, eff. 6-4-18.)
 
15    Section 25-10. The Use Tax Act is amended by changing
16Section 3-8 as follows:
 
17    (35 ILCS 105/3-8)
18    Sec. 3-8. Hospital exemption.
19    (a) Tangible Until July 1, 2022, tangible personal
20property sold to or used by a hospital owner that owns one or
21more hospitals licensed under the Hospital Licensing Act or
22operated under the University of Illinois Hospital Act, or a
23hospital affiliate that is not already exempt under another
24provision of this Act and meets the criteria for an exemption

 

 

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1under this Section, is exempt from taxation under this Act.
2    (b) A hospital owner or hospital affiliate satisfies the
3conditions for an exemption under this Section if the value of
4qualified services or activities listed in subsection (c) of
5this Section for the hospital year equals or exceeds the
6relevant hospital entity's estimated property tax liability,
7without regard to any property tax exemption granted under
8Section 15-86 of the Property Tax Code, for the calendar year
9in which exemption or renewal of exemption is sought. For
10purposes of making the calculations required by this
11subsection (b), if the relevant hospital entity is a hospital
12owner that owns more than one hospital, the value of the
13services or activities listed in subsection (c) shall be
14calculated on the basis of only those services and activities
15relating to the hospital that includes the subject property,
16and the relevant hospital entity's estimated property tax
17liability shall be calculated only with respect to the
18properties comprising that hospital. In the case of a
19multi-state hospital system or hospital affiliate, the value
20of the services or activities listed in subsection (c) shall
21be calculated on the basis of only those services and
22activities that occur in Illinois and the relevant hospital
23entity's estimated property tax liability shall be calculated
24only with respect to its property located in Illinois.
25    (c) The following services and activities shall be
26considered for purposes of making the calculations required by

 

 

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1subsection (b):
2        (1) Charity care. Free or discounted services provided
3    pursuant to the relevant hospital entity's financial
4    assistance policy, measured at cost, including discounts
5    provided under the Hospital Uninsured Patient Discount
6    Act.
7        (2) Health services to low-income and underserved
8    individuals. Other unreimbursed costs of the relevant
9    hospital entity for providing without charge, paying for,
10    or subsidizing goods, activities, or services for the
11    purpose of addressing the health of low-income or
12    underserved individuals. Those activities or services may
13    include, but are not limited to: financial or in-kind
14    support to affiliated or unaffiliated hospitals, hospital
15    affiliates, community clinics, or programs that treat
16    low-income or underserved individuals; paying for or
17    subsidizing health care professionals who care for
18    low-income or underserved individuals; providing or
19    subsidizing outreach or educational services to low-income
20    or underserved individuals for disease management and
21    prevention; free or subsidized goods, supplies, or
22    services needed by low-income or underserved individuals
23    because of their medical condition; and prenatal or
24    childbirth outreach to low-income or underserved persons.
25        (3) Subsidy of State or local governments. Direct or
26    indirect financial or in-kind subsidies of State or local

 

 

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1    governments by the relevant hospital entity that pay for
2    or subsidize activities or programs related to health care
3    for low-income or underserved individuals.
4        (4) Support for State health care programs for
5    low-income individuals. At the election of the hospital
6    applicant for each applicable year, either (A) 10% of
7    payments to the relevant hospital entity and any hospital
8    affiliate designated by the relevant hospital entity
9    (provided that such hospital affiliate's operations
10    provide financial or operational support for or receive
11    financial or operational support from the relevant
12    hospital entity) under Medicaid or other means-tested
13    programs, including, but not limited to, General
14    Assistance, the Covering ALL KIDS Health Insurance Act,
15    and the State Children's Health Insurance Program or (B)
16    the amount of subsidy provided by the relevant hospital
17    entity and any hospital affiliate designated by the
18    relevant hospital entity (provided that such hospital
19    affiliate's operations provide financial or operational
20    support for or receive financial or operational support
21    from the relevant hospital entity) to State or local
22    government in treating Medicaid recipients and recipients
23    of means-tested programs, including but not limited to
24    General Assistance, the Covering ALL KIDS Health Insurance
25    Act, and the State Children's Health Insurance Program.
26    The amount of subsidy for purpose of this item (4) is

 

 

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1    calculated in the same manner as unreimbursed costs are
2    calculated for Medicaid and other means-tested government
3    programs in the Schedule H of IRS Form 990 in effect on the
4    effective date of this amendatory Act of the 97th General
5    Assembly.
6        (5) Dual-eligible subsidy. The amount of subsidy
7    provided to government by treating dual-eligible
8    Medicare/Medicaid patients. The amount of subsidy for
9    purposes of this item (5) is calculated by multiplying the
10    relevant hospital entity's unreimbursed costs for
11    Medicare, calculated in the same manner as determined in
12    the Schedule H of IRS Form 990 in effect on the effective
13    date of this amendatory Act of the 97th General Assembly,
14    by the relevant hospital entity's ratio of dual-eligible
15    patients to total Medicare patients.
16        (6) Relief of the burden of government related to
17    health care. Except to the extent otherwise taken into
18    account in this subsection, the portion of unreimbursed
19    costs of the relevant hospital entity attributable to
20    providing, paying for, or subsidizing goods, activities,
21    or services that relieve the burden of government related
22    to health care for low-income individuals. Such activities
23    or services shall include, but are not limited to,
24    providing emergency, trauma, burn, neonatal, psychiatric,
25    rehabilitation, or other special services; providing
26    medical education; and conducting medical research or

 

 

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1    training of health care professionals. The portion of
2    those unreimbursed costs attributable to benefiting
3    low-income individuals shall be determined using the ratio
4    calculated by adding the relevant hospital entity's costs
5    attributable to charity care, Medicaid, other means-tested
6    government programs, Medicare patients with disabilities
7    under age 65, and dual-eligible Medicare/Medicaid patients
8    and dividing that total by the relevant hospital entity's
9    total costs. Such costs for the numerator and denominator
10    shall be determined by multiplying gross charges by the
11    cost to charge ratio taken from the hospital's most
12    recently filed Medicare cost report (CMS 2252-10
13    Worksheet, Part I). In the case of emergency services, the
14    ratio shall be calculated using costs (gross charges
15    multiplied by the cost to charge ratio taken from the
16    hospital's most recently filed Medicare cost report (CMS
17    2252-10 Worksheet, Part I)) of patients treated in the
18    relevant hospital entity's emergency department.
19        (7) Any other activity by the relevant hospital entity
20    that the Department determines relieves the burden of
21    government or addresses the health of low-income or
22    underserved individuals.
23    (d) The hospital applicant shall include information in
24its exemption application establishing that it satisfies the
25requirements of subsection (b). For purposes of making the
26calculations required by subsection (b), the hospital

 

 

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1applicant may for each year elect to use either (1) the value
2of the services or activities listed in subsection (e) for the
3hospital year or (2) the average value of those services or
4activities for the 3 fiscal years ending with the hospital
5year. If the relevant hospital entity has been in operation
6for less than 3 completed fiscal years, then the latter
7calculation, if elected, shall be performed on a pro rata
8basis.
9    (e) For purposes of making the calculations required by
10this Section:
11        (1) particular services or activities eligible for
12    consideration under any of the paragraphs (1) through (7)
13    of subsection (c) may not be counted under more than one of
14    those paragraphs; and
15        (2) the amount of unreimbursed costs and the amount of
16    subsidy shall not be reduced by restricted or unrestricted
17    payments received by the relevant hospital entity as
18    contributions deductible under Section 170(a) of the
19    Internal Revenue Code.
20    (f) (Blank).
21    (g) Estimation of Exempt Property Tax Liability. The
22estimated property tax liability used for the determination in
23subsection (b) shall be calculated as follows:
24        (1) "Estimated property tax liability" means the
25    estimated dollar amount of property tax that would be
26    owed, with respect to the exempt portion of each of the

 

 

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1    relevant hospital entity's properties that are already
2    fully or partially exempt, or for which an exemption in
3    whole or in part is currently being sought, and then
4    aggregated as applicable, as if the exempt portion of
5    those properties were subject to tax, calculated with
6    respect to each such property by multiplying:
7            (A) the lesser of (i) the actual assessed value,
8        if any, of the portion of the property for which an
9        exemption is sought or (ii) an estimated assessed
10        value of the exempt portion of such property as
11        determined in item (2) of this subsection (g), by
12            (B) the applicable State equalization rate
13        (yielding the equalized assessed value), by
14            (C) the applicable tax rate.
15        (2) The estimated assessed value of the exempt portion
16    of the property equals the sum of (i) the estimated fair
17    market value of buildings on the property, as determined
18    in accordance with subparagraphs (A) and (B) of this item
19    (2), multiplied by the applicable assessment factor, and
20    (ii) the estimated assessed value of the land portion of
21    the property, as determined in accordance with
22    subparagraph (C).
23            (A) The "estimated fair market value of buildings
24        on the property" means the replacement value of any
25        exempt portion of buildings on the property, minus
26        depreciation, determined utilizing the cost

 

 

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1        replacement method whereby the exempt square footage
2        of all such buildings is multiplied by the replacement
3        cost per square foot for Class A Average building
4        found in the most recent edition of the Marshall &
5        Swift Valuation Services Manual, adjusted by any
6        appropriate current cost and local multipliers.
7            (B) Depreciation, for purposes of calculating the
8        estimated fair market value of buildings on the
9        property, is applied by utilizing a weighted mean life
10        for the buildings based on original construction and
11        assuming a 40-year life for hospital buildings and the
12        applicable life for other types of buildings as
13        specified in the American Hospital Association
14        publication "Estimated Useful Lives of Depreciable
15        Hospital Assets". In the case of hospital buildings,
16        the remaining life is divided by 40 and this ratio is
17        multiplied by the replacement cost of the buildings to
18        obtain an estimated fair market value of buildings. If
19        a hospital building is older than 35 years, a
20        remaining life of 5 years for residual value is
21        assumed; and if a building is less than 8 years old, a
22        remaining life of 32 years is assumed.
23            (C) The estimated assessed value of the land
24        portion of the property shall be determined by
25        multiplying (i) the per square foot average of the
26        assessed values of three parcels of land (not

 

 

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1        including farm land, and excluding the assessed value
2        of the improvements thereon) reasonably comparable to
3        the property, by (ii) the number of square feet
4        comprising the exempt portion of the property's land
5        square footage.
6        (3) The assessment factor, State equalization rate,
7    and tax rate (including any special factors such as
8    Enterprise Zones) used in calculating the estimated
9    property tax liability shall be for the most recent year
10    that is publicly available from the applicable chief
11    county assessment officer or officers at least 90 days
12    before the end of the hospital year.
13        (4) The method utilized to calculate estimated
14    property tax liability for purposes of this Section 15-86
15    shall not be utilized for the actual valuation,
16    assessment, or taxation of property pursuant to the
17    Property Tax Code.
18    (h) For the purpose of this Section, the following terms
19shall have the meanings set forth below:
20        (1) "Hospital" means any institution, place, building,
21    buildings on a campus, or other health care facility
22    located in Illinois that is licensed under the Hospital
23    Licensing Act and has a hospital owner.
24        (2) "Hospital owner" means a not-for-profit
25    corporation that is the titleholder of a hospital, or the
26    owner of the beneficial interest in an Illinois land trust

 

 

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1    that is the titleholder of a hospital.
2        (3) "Hospital affiliate" means any corporation,
3    partnership, limited partnership, joint venture, limited
4    liability company, association or other organization,
5    other than a hospital owner, that directly or indirectly
6    controls, is controlled by, or is under common control
7    with one or more hospital owners and that supports, is
8    supported by, or acts in furtherance of the exempt health
9    care purposes of at least one of those hospital owners'
10    hospitals.
11        (4) "Hospital system" means a hospital and one or more
12    other hospitals or hospital affiliates related by common
13    control or ownership.
14        (5) "Control" relating to hospital owners, hospital
15    affiliates, or hospital systems means possession, direct
16    or indirect, of the power to direct or cause the direction
17    of the management and policies of the entity, whether
18    through ownership of assets, membership interest, other
19    voting or governance rights, by contract or otherwise.
20        (6) "Hospital applicant" means a hospital owner or
21    hospital affiliate that files an application for an
22    exemption or renewal of exemption under this Section.
23        (7) "Relevant hospital entity" means (A) the hospital
24    owner, in the case of a hospital applicant that is a
25    hospital owner, and (B) at the election of a hospital
26    applicant that is a hospital affiliate, either (i) the

 

 

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1    hospital affiliate or (ii) the hospital system to which
2    the hospital applicant belongs, including any hospitals or
3    hospital affiliates that are related by common control or
4    ownership.
5        (8) "Subject property" means property used for the
6    calculation under subsection (b) of this Section.
7        (9) "Hospital year" means the fiscal year of the
8    relevant hospital entity, or the fiscal year of one of the
9    hospital owners in the hospital system if the relevant
10    hospital entity is a hospital system with members with
11    different fiscal years, that ends in the year for which
12    the exemption is sought.
13    (i) It is the intent of the General Assembly that any
14exemptions taken, granted, or renewed under this Section prior
15to the effective date of this amendatory Act of the 100th
16General Assembly are hereby validated.
17    (j) It is the intent of the General Assembly that the
18exemption under this Section applies on a continuous basis. If
19this amendatory Act of the 102nd General Assembly takes effect
20after July 1, 2022, any exemptions taken, granted, or renewed
21under this Section on or after July 1, 2022 and prior to the
22effective date of this amendatory Act of the 102nd General
23Assembly are hereby validated.
24    (k) This Section is exempt from the provisions of Section
253-90.
26(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 

 

 

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1    Section 25-15. The Service Use Tax Act is amended by
2changing Section 3-8 as follows:
 
3    (35 ILCS 110/3-8)
4    Sec. 3-8. Hospital exemption.
5    (a) Tangible Until July 1, 2022, tangible personal
6property sold to or used by a hospital owner that owns one or
7more hospitals licensed under the Hospital Licensing Act or
8operated under the University of Illinois Hospital Act, or a
9hospital affiliate that is not already exempt under another
10provision of this Act and meets the criteria for an exemption
11under this Section, is exempt from taxation under this Act.
12    (b) A hospital owner or hospital affiliate satisfies the
13conditions for an exemption under this Section if the value of
14qualified services or activities listed in subsection (c) of
15this Section for the hospital year equals or exceeds the
16relevant hospital entity's estimated property tax liability,
17without regard to any property tax exemption granted under
18Section 15-86 of the Property Tax Code, for the calendar year
19in which exemption or renewal of exemption is sought. For
20purposes of making the calculations required by this
21subsection (b), if the relevant hospital entity is a hospital
22owner that owns more than one hospital, the value of the
23services or activities listed in subsection (c) shall be
24calculated on the basis of only those services and activities

 

 

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1relating to the hospital that includes the subject property,
2and the relevant hospital entity's estimated property tax
3liability shall be calculated only with respect to the
4properties comprising that hospital. In the case of a
5multi-state hospital system or hospital affiliate, the value
6of the services or activities listed in subsection (c) shall
7be calculated on the basis of only those services and
8activities that occur in Illinois and the relevant hospital
9entity's estimated property tax liability shall be calculated
10only with respect to its property located in Illinois.
11    (c) The following services and activities shall be
12considered for purposes of making the calculations required by
13subsection (b):
14        (1) Charity care. Free or discounted services provided
15    pursuant to the relevant hospital entity's financial
16    assistance policy, measured at cost, including discounts
17    provided under the Hospital Uninsured Patient Discount
18    Act.
19        (2) Health services to low-income and underserved
20    individuals. Other unreimbursed costs of the relevant
21    hospital entity for providing without charge, paying for,
22    or subsidizing goods, activities, or services for the
23    purpose of addressing the health of low-income or
24    underserved individuals. Those activities or services may
25    include, but are not limited to: financial or in-kind
26    support to affiliated or unaffiliated hospitals, hospital

 

 

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1    affiliates, community clinics, or programs that treat
2    low-income or underserved individuals; paying for or
3    subsidizing health care professionals who care for
4    low-income or underserved individuals; providing or
5    subsidizing outreach or educational services to low-income
6    or underserved individuals for disease management and
7    prevention; free or subsidized goods, supplies, or
8    services needed by low-income or underserved individuals
9    because of their medical condition; and prenatal or
10    childbirth outreach to low-income or underserved persons.
11        (3) Subsidy of State or local governments. Direct or
12    indirect financial or in-kind subsidies of State or local
13    governments by the relevant hospital entity that pay for
14    or subsidize activities or programs related to health care
15    for low-income or underserved individuals.
16        (4) Support for State health care programs for
17    low-income individuals. At the election of the hospital
18    applicant for each applicable year, either (A) 10% of
19    payments to the relevant hospital entity and any hospital
20    affiliate designated by the relevant hospital entity
21    (provided that such hospital affiliate's operations
22    provide financial or operational support for or receive
23    financial or operational support from the relevant
24    hospital entity) under Medicaid or other means-tested
25    programs, including, but not limited to, General
26    Assistance, the Covering ALL KIDS Health Insurance Act,

 

 

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1    and the State Children's Health Insurance Program or (B)
2    the amount of subsidy provided by the relevant hospital
3    entity and any hospital affiliate designated by the
4    relevant hospital entity (provided that such hospital
5    affiliate's operations provide financial or operational
6    support for or receive financial or operational support
7    from the relevant hospital entity) to State or local
8    government in treating Medicaid recipients and recipients
9    of means-tested programs, including but not limited to
10    General Assistance, the Covering ALL KIDS Health Insurance
11    Act, and the State Children's Health Insurance Program.
12    The amount of subsidy for purposes of this item (4) is
13    calculated in the same manner as unreimbursed costs are
14    calculated for Medicaid and other means-tested government
15    programs in the Schedule H of IRS Form 990 in effect on the
16    effective date of this amendatory Act of the 97th General
17    Assembly.
18        (5) Dual-eligible subsidy. The amount of subsidy
19    provided to government by treating dual-eligible
20    Medicare/Medicaid patients. The amount of subsidy for
21    purposes of this item (5) is calculated by multiplying the
22    relevant hospital entity's unreimbursed costs for
23    Medicare, calculated in the same manner as determined in
24    the Schedule H of IRS Form 990 in effect on the effective
25    date of this amendatory Act of the 97th General Assembly,
26    by the relevant hospital entity's ratio of dual-eligible

 

 

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1    patients to total Medicare patients.
2        (6) Relief of the burden of government related to
3    health care. Except to the extent otherwise taken into
4    account in this subsection, the portion of unreimbursed
5    costs of the relevant hospital entity attributable to
6    providing, paying for, or subsidizing goods, activities,
7    or services that relieve the burden of government related
8    to health care for low-income individuals. Such activities
9    or services shall include, but are not limited to,
10    providing emergency, trauma, burn, neonatal, psychiatric,
11    rehabilitation, or other special services; providing
12    medical education; and conducting medical research or
13    training of health care professionals. The portion of
14    those unreimbursed costs attributable to benefiting
15    low-income individuals shall be determined using the ratio
16    calculated by adding the relevant hospital entity's costs
17    attributable to charity care, Medicaid, other means-tested
18    government programs, Medicare patients with disabilities
19    under age 65, and dual-eligible Medicare/Medicaid patients
20    and dividing that total by the relevant hospital entity's
21    total costs. Such costs for the numerator and denominator
22    shall be determined by multiplying gross charges by the
23    cost to charge ratio taken from the hospital's most
24    recently filed Medicare cost report (CMS 2252-10
25    Worksheet, Part I). In the case of emergency services, the
26    ratio shall be calculated using costs (gross charges

 

 

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1    multiplied by the cost to charge ratio taken from the
2    hospital's most recently filed Medicare cost report (CMS
3    2252-10 Worksheet, Part I)) of patients treated in the
4    relevant hospital entity's emergency department.
5        (7) Any other activity by the relevant hospital entity
6    that the Department determines relieves the burden of
7    government or addresses the health of low-income or
8    underserved individuals.
9    (d) The hospital applicant shall include information in
10its exemption application establishing that it satisfies the
11requirements of subsection (b). For purposes of making the
12calculations required by subsection (b), the hospital
13applicant may for each year elect to use either (1) the value
14of the services or activities listed in subsection (e) for the
15hospital year or (2) the average value of those services or
16activities for the 3 fiscal years ending with the hospital
17year. If the relevant hospital entity has been in operation
18for less than 3 completed fiscal years, then the latter
19calculation, if elected, shall be performed on a pro rata
20basis.
21    (e) For purposes of making the calculations required by
22this Section:
23        (1) particular services or activities eligible for
24    consideration under any of the paragraphs (1) through (7)
25    of subsection (c) may not be counted under more than one of
26    those paragraphs; and

 

 

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1        (2) the amount of unreimbursed costs and the amount of
2    subsidy shall not be reduced by restricted or unrestricted
3    payments received by the relevant hospital entity as
4    contributions deductible under Section 170(a) of the
5    Internal Revenue Code.
6    (f) (Blank).
7    (g) Estimation of Exempt Property Tax Liability. The
8estimated property tax liability used for the determination in
9subsection (b) shall be calculated as follows:
10        (1) "Estimated property tax liability" means the
11    estimated dollar amount of property tax that would be
12    owed, with respect to the exempt portion of each of the
13    relevant hospital entity's properties that are already
14    fully or partially exempt, or for which an exemption in
15    whole or in part is currently being sought, and then
16    aggregated as applicable, as if the exempt portion of
17    those properties were subject to tax, calculated with
18    respect to each such property by multiplying:
19            (A) the lesser of (i) the actual assessed value,
20        if any, of the portion of the property for which an
21        exemption is sought or (ii) an estimated assessed
22        value of the exempt portion of such property as
23        determined in item (2) of this subsection (g), by
24            (B) the applicable State equalization rate
25        (yielding the equalized assessed value), by
26            (C) the applicable tax rate.

 

 

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1        (2) The estimated assessed value of the exempt portion
2    of the property equals the sum of (i) the estimated fair
3    market value of buildings on the property, as determined
4    in accordance with subparagraphs (A) and (B) of this item
5    (2), multiplied by the applicable assessment factor, and
6    (ii) the estimated assessed value of the land portion of
7    the property, as determined in accordance with
8    subparagraph (C).
9            (A) The "estimated fair market value of buildings
10        on the property" means the replacement value of any
11        exempt portion of buildings on the property, minus
12        depreciation, determined utilizing the cost
13        replacement method whereby the exempt square footage
14        of all such buildings is multiplied by the replacement
15        cost per square foot for Class A Average building
16        found in the most recent edition of the Marshall &
17        Swift Valuation Services Manual, adjusted by any
18        appropriate current cost and local multipliers.
19            (B) Depreciation, for purposes of calculating the
20        estimated fair market value of buildings on the
21        property, is applied by utilizing a weighted mean life
22        for the buildings based on original construction and
23        assuming a 40-year life for hospital buildings and the
24        applicable life for other types of buildings as
25        specified in the American Hospital Association
26        publication "Estimated Useful Lives of Depreciable

 

 

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1        Hospital Assets". In the case of hospital buildings,
2        the remaining life is divided by 40 and this ratio is
3        multiplied by the replacement cost of the buildings to
4        obtain an estimated fair market value of buildings. If
5        a hospital building is older than 35 years, a
6        remaining life of 5 years for residual value is
7        assumed; and if a building is less than 8 years old, a
8        remaining life of 32 years is assumed.
9            (C) The estimated assessed value of the land
10        portion of the property shall be determined by
11        multiplying (i) the per square foot average of the
12        assessed values of three parcels of land (not
13        including farm land, and excluding the assessed value
14        of the improvements thereon) reasonably comparable to
15        the property, by (ii) the number of square feet
16        comprising the exempt portion of the property's land
17        square footage.
18        (3) The assessment factor, State equalization rate,
19    and tax rate (including any special factors such as
20    Enterprise Zones) used in calculating the estimated
21    property tax liability shall be for the most recent year
22    that is publicly available from the applicable chief
23    county assessment officer or officers at least 90 days
24    before the end of the hospital year.
25        (4) The method utilized to calculate estimated
26    property tax liability for purposes of this Section 15-86

 

 

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1    shall not be utilized for the actual valuation,
2    assessment, or taxation of property pursuant to the
3    Property Tax Code.
4    (h) For the purpose of this Section, the following terms
5shall have the meanings set forth below:
6        (1) "Hospital" means any institution, place, building,
7    buildings on a campus, or other health care facility
8    located in Illinois that is licensed under the Hospital
9    Licensing Act and has a hospital owner.
10        (2) "Hospital owner" means a not-for-profit
11    corporation that is the titleholder of a hospital, or the
12    owner of the beneficial interest in an Illinois land trust
13    that is the titleholder of a hospital.
14        (3) "Hospital affiliate" means any corporation,
15    partnership, limited partnership, joint venture, limited
16    liability company, association or other organization,
17    other than a hospital owner, that directly or indirectly
18    controls, is controlled by, or is under common control
19    with one or more hospital owners and that supports, is
20    supported by, or acts in furtherance of the exempt health
21    care purposes of at least one of those hospital owners'
22    hospitals.
23        (4) "Hospital system" means a hospital and one or more
24    other hospitals or hospital affiliates related by common
25    control or ownership.
26        (5) "Control" relating to hospital owners, hospital

 

 

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1    affiliates, or hospital systems means possession, direct
2    or indirect, of the power to direct or cause the direction
3    of the management and policies of the entity, whether
4    through ownership of assets, membership interest, other
5    voting or governance rights, by contract or otherwise.
6        (6) "Hospital applicant" means a hospital owner or
7    hospital affiliate that files an application for an
8    exemption or renewal of exemption under this Section.
9        (7) "Relevant hospital entity" means (A) the hospital
10    owner, in the case of a hospital applicant that is a
11    hospital owner, and (B) at the election of a hospital
12    applicant that is a hospital affiliate, either (i) the
13    hospital affiliate or (ii) the hospital system to which
14    the hospital applicant belongs, including any hospitals or
15    hospital affiliates that are related by common control or
16    ownership.
17        (8) "Subject property" means property used for the
18    calculation under subsection (b) of this Section.
19        (9) "Hospital year" means the fiscal year of the
20    relevant hospital entity, or the fiscal year of one of the
21    hospital owners in the hospital system if the relevant
22    hospital entity is a hospital system with members with
23    different fiscal years, that ends in the year for which
24    the exemption is sought.
25    (i) It is the intent of the General Assembly that any
26exemptions taken, granted, or renewed under this Section prior

 

 

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1to the effective date of this amendatory Act of the 100th
2General Assembly are hereby validated.
3    (j) It is the intent of the General Assembly that the
4exemption under this Section applies on a continuous basis. If
5this amendatory Act of the 102nd General Assembly takes effect
6after July 1, 2022, any exemptions taken, granted, or renewed
7under this Section on or after July 1, 2022 and prior to the
8effective date of this amendatory Act of the 102nd General
9Assembly are hereby validated.
10    (k) This Section is exempt from the provisions of Section
113-75.
12(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 
13    Section 25-20. The Service Occupation Tax Act is amended
14by changing Section 3-8 as follows:
 
15    (35 ILCS 115/3-8)
16    Sec. 3-8. Hospital exemption.
17    (a) Tangible Until July 1, 2022, tangible personal
18property sold to or used by a hospital owner that owns one or
19more hospitals licensed under the Hospital Licensing Act or
20operated under the University of Illinois Hospital Act, or a
21hospital affiliate that is not already exempt under another
22provision of this Act and meets the criteria for an exemption
23under this Section, is exempt from taxation under this Act.
24    (b) A hospital owner or hospital affiliate satisfies the

 

 

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1conditions for an exemption under this Section if the value of
2qualified services or activities listed in subsection (c) of
3this Section for the hospital year equals or exceeds the
4relevant hospital entity's estimated property tax liability,
5without regard to any property tax exemption granted under
6Section 15-86 of the Property Tax Code, for the calendar year
7in which exemption or renewal of exemption is sought. For
8purposes of making the calculations required by this
9subsection (b), if the relevant hospital entity is a hospital
10owner that owns more than one hospital, the value of the
11services or activities listed in subsection (c) shall be
12calculated on the basis of only those services and activities
13relating to the hospital that includes the subject property,
14and the relevant hospital entity's estimated property tax
15liability shall be calculated only with respect to the
16properties comprising that hospital. In the case of a
17multi-state hospital system or hospital affiliate, the value
18of the services or activities listed in subsection (c) shall
19be calculated on the basis of only those services and
20activities that occur in Illinois and the relevant hospital
21entity's estimated property tax liability shall be calculated
22only with respect to its property located in Illinois.
23    (c) The following services and activities shall be
24considered for purposes of making the calculations required by
25subsection (b):
26        (1) Charity care. Free or discounted services provided

 

 

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1    pursuant to the relevant hospital entity's financial
2    assistance policy, measured at cost, including discounts
3    provided under the Hospital Uninsured Patient Discount
4    Act.
5        (2) Health services to low-income and underserved
6    individuals. Other unreimbursed costs of the relevant
7    hospital entity for providing without charge, paying for,
8    or subsidizing goods, activities, or services for the
9    purpose of addressing the health of low-income or
10    underserved individuals. Those activities or services may
11    include, but are not limited to: financial or in-kind
12    support to affiliated or unaffiliated hospitals, hospital
13    affiliates, community clinics, or programs that treat
14    low-income or underserved individuals; paying for or
15    subsidizing health care professionals who care for
16    low-income or underserved individuals; providing or
17    subsidizing outreach or educational services to low-income
18    or underserved individuals for disease management and
19    prevention; free or subsidized goods, supplies, or
20    services needed by low-income or underserved individuals
21    because of their medical condition; and prenatal or
22    childbirth outreach to low-income or underserved persons.
23        (3) Subsidy of State or local governments. Direct or
24    indirect financial or in-kind subsidies of State or local
25    governments by the relevant hospital entity that pay for
26    or subsidize activities or programs related to health care

 

 

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1    for low-income or underserved individuals.
2        (4) Support for State health care programs for
3    low-income individuals. At the election of the hospital
4    applicant for each applicable year, either (A) 10% of
5    payments to the relevant hospital entity and any hospital
6    affiliate designated by the relevant hospital entity
7    (provided that such hospital affiliate's operations
8    provide financial or operational support for or receive
9    financial or operational support from the relevant
10    hospital entity) under Medicaid or other means-tested
11    programs, including, but not limited to, General
12    Assistance, the Covering ALL KIDS Health Insurance Act,
13    and the State Children's Health Insurance Program or (B)
14    the amount of subsidy provided by the relevant hospital
15    entity and any hospital affiliate designated by the
16    relevant hospital entity (provided that such hospital
17    affiliate's operations provide financial or operational
18    support for or receive financial or operational support
19    from the relevant hospital entity) to State or local
20    government in treating Medicaid recipients and recipients
21    of means-tested programs, including but not limited to
22    General Assistance, the Covering ALL KIDS Health Insurance
23    Act, and the State Children's Health Insurance Program.
24    The amount of subsidy for purposes of this item (4) is
25    calculated in the same manner as unreimbursed costs are
26    calculated for Medicaid and other means-tested government

 

 

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1    programs in the Schedule H of IRS Form 990 in effect on the
2    effective date of this amendatory Act of the 97th General
3    Assembly.
4        (5) Dual-eligible subsidy. The amount of subsidy
5    provided to government by treating dual-eligible
6    Medicare/Medicaid patients. The amount of subsidy for
7    purposes of this item (5) is calculated by multiplying the
8    relevant hospital entity's unreimbursed costs for
9    Medicare, calculated in the same manner as determined in
10    the Schedule H of IRS Form 990 in effect on the effective
11    date of this amendatory Act of the 97th General Assembly,
12    by the relevant hospital entity's ratio of dual-eligible
13    patients to total Medicare patients.
14        (6) Relief of the burden of government related to
15    health care. Except to the extent otherwise taken into
16    account in this subsection, the portion of unreimbursed
17    costs of the relevant hospital entity attributable to
18    providing, paying for, or subsidizing goods, activities,
19    or services that relieve the burden of government related
20    to health care for low-income individuals. Such activities
21    or services shall include, but are not limited to,
22    providing emergency, trauma, burn, neonatal, psychiatric,
23    rehabilitation, or other special services; providing
24    medical education; and conducting medical research or
25    training of health care professionals. The portion of
26    those unreimbursed costs attributable to benefiting

 

 

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1    low-income individuals shall be determined using the ratio
2    calculated by adding the relevant hospital entity's costs
3    attributable to charity care, Medicaid, other means-tested
4    government programs, Medicare patients with disabilities
5    under age 65, and dual-eligible Medicare/Medicaid patients
6    and dividing that total by the relevant hospital entity's
7    total costs. Such costs for the numerator and denominator
8    shall be determined by multiplying gross charges by the
9    cost to charge ratio taken from the hospital's most
10    recently filed Medicare cost report (CMS 2252-10
11    Worksheet, Part I). In the case of emergency services, the
12    ratio shall be calculated using costs (gross charges
13    multiplied by the cost to charge ratio taken from the
14    hospital's most recently filed Medicare cost report (CMS
15    2252-10 Worksheet, Part I)) of patients treated in the
16    relevant hospital entity's emergency department.
17        (7) Any other activity by the relevant hospital entity
18    that the Department determines relieves the burden of
19    government or addresses the health of low-income or
20    underserved individuals.
21    (d) The hospital applicant shall include information in
22its exemption application establishing that it satisfies the
23requirements of subsection (b). For purposes of making the
24calculations required by subsection (b), the hospital
25applicant may for each year elect to use either (1) the value
26of the services or activities listed in subsection (e) for the

 

 

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1hospital year or (2) the average value of those services or
2activities for the 3 fiscal years ending with the hospital
3year. If the relevant hospital entity has been in operation
4for less than 3 completed fiscal years, then the latter
5calculation, if elected, shall be performed on a pro rata
6basis.
7    (e) For purposes of making the calculations required by
8this Section:
9        (1) particular services or activities eligible for
10    consideration under any of the paragraphs (1) through (7)
11    of subsection (c) may not be counted under more than one of
12    those paragraphs; and
13        (2) the amount of unreimbursed costs and the amount of
14    subsidy shall not be reduced by restricted or unrestricted
15    payments received by the relevant hospital entity as
16    contributions deductible under Section 170(a) of the
17    Internal Revenue Code.
18    (f) (Blank).
19    (g) Estimation of Exempt Property Tax Liability. The
20estimated property tax liability used for the determination in
21subsection (b) shall be calculated as follows:
22        (1) "Estimated property tax liability" means the
23    estimated dollar amount of property tax that would be
24    owed, with respect to the exempt portion of each of the
25    relevant hospital entity's properties that are already
26    fully or partially exempt, or for which an exemption in

 

 

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1    whole or in part is currently being sought, and then
2    aggregated as applicable, as if the exempt portion of
3    those properties were subject to tax, calculated with
4    respect to each such property by multiplying:
5            (A) the lesser of (i) the actual assessed value,
6        if any, of the portion of the property for which an
7        exemption is sought or (ii) an estimated assessed
8        value of the exempt portion of such property as
9        determined in item (2) of this subsection (g), by
10            (B) the applicable State equalization rate
11        (yielding the equalized assessed value), by
12            (C) the applicable tax rate.
13        (2) The estimated assessed value of the exempt portion
14    of the property equals the sum of (i) the estimated fair
15    market value of buildings on the property, as determined
16    in accordance with subparagraphs (A) and (B) of this item
17    (2), multiplied by the applicable assessment factor, and
18    (ii) the estimated assessed value of the land portion of
19    the property, as determined in accordance with
20    subparagraph (C).
21            (A) The "estimated fair market value of buildings
22        on the property" means the replacement value of any
23        exempt portion of buildings on the property, minus
24        depreciation, determined utilizing the cost
25        replacement method whereby the exempt square footage
26        of all such buildings is multiplied by the replacement

 

 

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1        cost per square foot for Class A Average building
2        found in the most recent edition of the Marshall &
3        Swift Valuation Services Manual, adjusted by any
4        appropriate current cost and local multipliers.
5            (B) Depreciation, for purposes of calculating the
6        estimated fair market value of buildings on the
7        property, is applied by utilizing a weighted mean life
8        for the buildings based on original construction and
9        assuming a 40-year life for hospital buildings and the
10        applicable life for other types of buildings as
11        specified in the American Hospital Association
12        publication "Estimated Useful Lives of Depreciable
13        Hospital Assets". In the case of hospital buildings,
14        the remaining life is divided by 40 and this ratio is
15        multiplied by the replacement cost of the buildings to
16        obtain an estimated fair market value of buildings. If
17        a hospital building is older than 35 years, a
18        remaining life of 5 years for residual value is
19        assumed; and if a building is less than 8 years old, a
20        remaining life of 32 years is assumed.
21            (C) The estimated assessed value of the land
22        portion of the property shall be determined by
23        multiplying (i) the per square foot average of the
24        assessed values of three parcels of land (not
25        including farm land, and excluding the assessed value
26        of the improvements thereon) reasonably comparable to

 

 

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1        the property, by (ii) the number of square feet
2        comprising the exempt portion of the property's land
3        square footage.
4        (3) The assessment factor, State equalization rate,
5    and tax rate (including any special factors such as
6    Enterprise Zones) used in calculating the estimated
7    property tax liability shall be for the most recent year
8    that is publicly available from the applicable chief
9    county assessment officer or officers at least 90 days
10    before the end of the hospital year.
11        (4) The method utilized to calculate estimated
12    property tax liability for purposes of this Section 15-86
13    shall not be utilized for the actual valuation,
14    assessment, or taxation of property pursuant to the
15    Property Tax Code.
16    (h) For the purpose of this Section, the following terms
17shall have the meanings set forth below:
18        (1) "Hospital" means any institution, place, building,
19    buildings on a campus, or other health care facility
20    located in Illinois that is licensed under the Hospital
21    Licensing Act and has a hospital owner.
22        (2) "Hospital owner" means a not-for-profit
23    corporation that is the titleholder of a hospital, or the
24    owner of the beneficial interest in an Illinois land trust
25    that is the titleholder of a hospital.
26        (3) "Hospital affiliate" means any corporation,

 

 

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1    partnership, limited partnership, joint venture, limited
2    liability company, association or other organization,
3    other than a hospital owner, that directly or indirectly
4    controls, is controlled by, or is under common control
5    with one or more hospital owners and that supports, is
6    supported by, or acts in furtherance of the exempt health
7    care purposes of at least one of those hospital owners'
8    hospitals.
9        (4) "Hospital system" means a hospital and one or more
10    other hospitals or hospital affiliates related by common
11    control or ownership.
12        (5) "Control" relating to hospital owners, hospital
13    affiliates, or hospital systems means possession, direct
14    or indirect, of the power to direct or cause the direction
15    of the management and policies of the entity, whether
16    through ownership of assets, membership interest, other
17    voting or governance rights, by contract or otherwise.
18        (6) "Hospital applicant" means a hospital owner or
19    hospital affiliate that files an application for an
20    exemption or renewal of exemption under this Section.
21        (7) "Relevant hospital entity" means (A) the hospital
22    owner, in the case of a hospital applicant that is a
23    hospital owner, and (B) at the election of a hospital
24    applicant that is a hospital affiliate, either (i) the
25    hospital affiliate or (ii) the hospital system to which
26    the hospital applicant belongs, including any hospitals or

 

 

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1    hospital affiliates that are related by common control or
2    ownership.
3        (8) "Subject property" means property used for the
4    calculation under subsection (b) of this Section.
5        (9) "Hospital year" means the fiscal year of the
6    relevant hospital entity, or the fiscal year of one of the
7    hospital owners in the hospital system if the relevant
8    hospital entity is a hospital system with members with
9    different fiscal years, that ends in the year for which
10    the exemption is sought.
11    (i) It is the intent of the General Assembly that any
12exemptions taken, granted, or renewed under this Section prior
13to the effective date of this amendatory Act of the 100th
14General Assembly are hereby validated.
15    (j) It is the intent of the General Assembly that the
16exemption under this Section applies on a continuous basis. If
17this amendatory Act of the 102nd General Assembly takes effect
18after July 1, 2022, any exemptions taken, granted, or renewed
19under this Section on or after July 1, 2022 and prior to the
20effective date of this amendatory Act of the 102nd General
21Assembly are hereby validated.
22    (k) This Section is exempt from the provisions of Section
233-55.
24(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 
25    Section 25-25. The Retailers' Occupation Tax Act is

 

 

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1amended by changing Section 2-9 as follows:
 
2    (35 ILCS 120/2-9)
3    Sec. 2-9. Hospital exemption.
4    (a) Tangible Until July 1, 2022, tangible personal
5property sold to or used by a hospital owner that owns one or
6more hospitals licensed under the Hospital Licensing Act or
7operated under the University of Illinois Hospital Act, or a
8hospital affiliate that is not already exempt under another
9provision of this Act and meets the criteria for an exemption
10under this Section, is exempt from taxation under this Act.
11    (b) A hospital owner or hospital affiliate satisfies the
12conditions for an exemption under this Section if the value of
13qualified services or activities listed in subsection (c) of
14this Section for the hospital year equals or exceeds the
15relevant hospital entity's estimated property tax liability,
16without regard to any property tax exemption granted under
17Section 15-86 of the Property Tax Code, for the calendar year
18in which exemption or renewal of exemption is sought. For
19purposes of making the calculations required by this
20subsection (b), if the relevant hospital entity is a hospital
21owner that owns more than one hospital, the value of the
22services or activities listed in subsection (c) shall be
23calculated on the basis of only those services and activities
24relating to the hospital that includes the subject property,
25and the relevant hospital entity's estimated property tax

 

 

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1liability shall be calculated only with respect to the
2properties comprising that hospital. In the case of a
3multi-state hospital system or hospital affiliate, the value
4of the services or activities listed in subsection (c) shall
5be calculated on the basis of only those services and
6activities that occur in Illinois and the relevant hospital
7entity's estimated property tax liability shall be calculated
8only with respect to its property located in Illinois.
9    (c) The following services and activities shall be
10considered for purposes of making the calculations required by
11subsection (b):
12        (1) Charity care. Free or discounted services provided
13    pursuant to the relevant hospital entity's financial
14    assistance policy, measured at cost, including discounts
15    provided under the Hospital Uninsured Patient Discount
16    Act.
17        (2) Health services to low-income and underserved
18    individuals. Other unreimbursed costs of the relevant
19    hospital entity for providing without charge, paying for,
20    or subsidizing goods, activities, or services for the
21    purpose of addressing the health of low-income or
22    underserved individuals. Those activities or services may
23    include, but are not limited to: financial or in-kind
24    support to affiliated or unaffiliated hospitals, hospital
25    affiliates, community clinics, or programs that treat
26    low-income or underserved individuals; paying for or

 

 

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1    subsidizing health care professionals who care for
2    low-income or underserved individuals; providing or
3    subsidizing outreach or educational services to low-income
4    or underserved individuals for disease management and
5    prevention; free or subsidized goods, supplies, or
6    services needed by low-income or underserved individuals
7    because of their medical condition; and prenatal or
8    childbirth outreach to low-income or underserved persons.
9        (3) Subsidy of State or local governments. Direct or
10    indirect financial or in-kind subsidies of State or local
11    governments by the relevant hospital entity that pay for
12    or subsidize activities or programs related to health care
13    for low-income or underserved individuals.
14        (4) Support for State health care programs for
15    low-income individuals. At the election of the hospital
16    applicant for each applicable year, either (A) 10% of
17    payments to the relevant hospital entity and any hospital
18    affiliate designated by the relevant hospital entity
19    (provided that such hospital affiliate's operations
20    provide financial or operational support for or receive
21    financial or operational support from the relevant
22    hospital entity) under Medicaid or other means-tested
23    programs, including, but not limited to, General
24    Assistance, the Covering ALL KIDS Health Insurance Act,
25    and the State Children's Health Insurance Program or (B)
26    the amount of subsidy provided by the relevant hospital

 

 

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1    entity and any hospital affiliate designated by the
2    relevant hospital entity (provided that such hospital
3    affiliate's operations provide financial or operational
4    support for or receive financial or operational support
5    from the relevant hospital entity) to State or local
6    government in treating Medicaid recipients and recipients
7    of means-tested programs, including but not limited to
8    General Assistance, the Covering ALL KIDS Health Insurance
9    Act, and the State Children's Health Insurance Program.
10    The amount of subsidy for purposes of this item (4) is
11    calculated in the same manner as unreimbursed costs are
12    calculated for Medicaid and other means-tested government
13    programs in the Schedule H of IRS Form 990 in effect on the
14    effective date of this amendatory Act of the 97th General
15    Assembly.
16        (5) Dual-eligible subsidy. The amount of subsidy
17    provided to government by treating dual-eligible
18    Medicare/Medicaid patients. The amount of subsidy for
19    purposes of this item (5) is calculated by multiplying the
20    relevant hospital entity's unreimbursed costs for
21    Medicare, calculated in the same manner as determined in
22    the Schedule H of IRS Form 990 in effect on the effective
23    date of this amendatory Act of the 97th General Assembly,
24    by the relevant hospital entity's ratio of dual-eligible
25    patients to total Medicare patients.
26        (6) Relief of the burden of government related to

 

 

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1    health care. Except to the extent otherwise taken into
2    account in this subsection, the portion of unreimbursed
3    costs of the relevant hospital entity attributable to
4    providing, paying for, or subsidizing goods, activities,
5    or services that relieve the burden of government related
6    to health care for low-income individuals. Such activities
7    or services shall include, but are not limited to,
8    providing emergency, trauma, burn, neonatal, psychiatric,
9    rehabilitation, or other special services; providing
10    medical education; and conducting medical research or
11    training of health care professionals. The portion of
12    those unreimbursed costs attributable to benefiting
13    low-income individuals shall be determined using the ratio
14    calculated by adding the relevant hospital entity's costs
15    attributable to charity care, Medicaid, other means-tested
16    government programs, Medicare patients with disabilities
17    under age 65, and dual-eligible Medicare/Medicaid patients
18    and dividing that total by the relevant hospital entity's
19    total costs. Such costs for the numerator and denominator
20    shall be determined by multiplying gross charges by the
21    cost to charge ratio taken from the hospital's most
22    recently filed Medicare cost report (CMS 2252-10
23    Worksheet, Part I). In the case of emergency services, the
24    ratio shall be calculated using costs (gross charges
25    multiplied by the cost to charge ratio taken from the
26    hospital's most recently filed Medicare cost report (CMS

 

 

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1    2252-10 Worksheet, Part I)) of patients treated in the
2    relevant hospital entity's emergency department.
3        (7) Any other activity by the relevant hospital entity
4    that the Department determines relieves the burden of
5    government or addresses the health of low-income or
6    underserved individuals.
7    (d) The hospital applicant shall include information in
8its exemption application establishing that it satisfies the
9requirements of subsection (b). For purposes of making the
10calculations required by subsection (b), the hospital
11applicant may for each year elect to use either (1) the value
12of the services or activities listed in subsection (e) for the
13hospital year or (2) the average value of those services or
14activities for the 3 fiscal years ending with the hospital
15year. If the relevant hospital entity has been in operation
16for less than 3 completed fiscal years, then the latter
17calculation, if elected, shall be performed on a pro rata
18basis.
19    (e) For purposes of making the calculations required by
20this Section:
21        (1) particular services or activities eligible for
22    consideration under any of the paragraphs (1) through (7)
23    of subsection (c) may not be counted under more than one of
24    those paragraphs; and
25        (2) the amount of unreimbursed costs and the amount of
26    subsidy shall not be reduced by restricted or unrestricted

 

 

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1    payments received by the relevant hospital entity as
2    contributions deductible under Section 170(a) of the
3    Internal Revenue Code.
4    (f) (Blank).
5    (g) Estimation of Exempt Property Tax Liability. The
6estimated property tax liability used for the determination in
7subsection (b) shall be calculated as follows:
8        (1) "Estimated property tax liability" means the
9    estimated dollar amount of property tax that would be
10    owed, with respect to the exempt portion of each of the
11    relevant hospital entity's properties that are already
12    fully or partially exempt, or for which an exemption in
13    whole or in part is currently being sought, and then
14    aggregated as applicable, as if the exempt portion of
15    those properties were subject to tax, calculated with
16    respect to each such property by multiplying:
17            (A) the lesser of (i) the actual assessed value,
18        if any, of the portion of the property for which an
19        exemption is sought or (ii) an estimated assessed
20        value of the exempt portion of such property as
21        determined in item (2) of this subsection (g), by
22            (B) the applicable State equalization rate
23        (yielding the equalized assessed value), by
24            (C) the applicable tax rate.
25        (2) The estimated assessed value of the exempt portion
26    of the property equals the sum of (i) the estimated fair

 

 

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1    market value of buildings on the property, as determined
2    in accordance with subparagraphs (A) and (B) of this item
3    (2), multiplied by the applicable assessment factor, and
4    (ii) the estimated assessed value of the land portion of
5    the property, as determined in accordance with
6    subparagraph (C).
7            (A) The "estimated fair market value of buildings
8        on the property" means the replacement value of any
9        exempt portion of buildings on the property, minus
10        depreciation, determined utilizing the cost
11        replacement method whereby the exempt square footage
12        of all such buildings is multiplied by the replacement
13        cost per square foot for Class A Average building
14        found in the most recent edition of the Marshall &
15        Swift Valuation Services Manual, adjusted by any
16        appropriate current cost and local multipliers.
17            (B) Depreciation, for purposes of calculating the
18        estimated fair market value of buildings on the
19        property, is applied by utilizing a weighted mean life
20        for the buildings based on original construction and
21        assuming a 40-year life for hospital buildings and the
22        applicable life for other types of buildings as
23        specified in the American Hospital Association
24        publication "Estimated Useful Lives of Depreciable
25        Hospital Assets". In the case of hospital buildings,
26        the remaining life is divided by 40 and this ratio is

 

 

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1        multiplied by the replacement cost of the buildings to
2        obtain an estimated fair market value of buildings. If
3        a hospital building is older than 35 years, a
4        remaining life of 5 years for residual value is
5        assumed; and if a building is less than 8 years old, a
6        remaining life of 32 years is assumed.
7            (C) The estimated assessed value of the land
8        portion of the property shall be determined by
9        multiplying (i) the per square foot average of the
10        assessed values of three parcels of land (not
11        including farm land, and excluding the assessed value
12        of the improvements thereon) reasonably comparable to
13        the property, by (ii) the number of square feet
14        comprising the exempt portion of the property's land
15        square footage.
16        (3) The assessment factor, State equalization rate,
17    and tax rate (including any special factors such as
18    Enterprise Zones) used in calculating the estimated
19    property tax liability shall be for the most recent year
20    that is publicly available from the applicable chief
21    county assessment officer or officers at least 90 days
22    before the end of the hospital year.
23        (4) The method utilized to calculate estimated
24    property tax liability for purposes of this Section 15-86
25    shall not be utilized for the actual valuation,
26    assessment, or taxation of property pursuant to the

 

 

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1    Property Tax Code.
2    (h) For the purpose of this Section, the following terms
3shall have the meanings set forth below:
4        (1) "Hospital" means any institution, place, building,
5    buildings on a campus, or other health care facility
6    located in Illinois that is licensed under the Hospital
7    Licensing Act and has a hospital owner.
8        (2) "Hospital owner" means a not-for-profit
9    corporation that is the titleholder of a hospital, or the
10    owner of the beneficial interest in an Illinois land trust
11    that is the titleholder of a hospital.
12        (3) "Hospital affiliate" means any corporation,
13    partnership, limited partnership, joint venture, limited
14    liability company, association or other organization,
15    other than a hospital owner, that directly or indirectly
16    controls, is controlled by, or is under common control
17    with one or more hospital owners and that supports, is
18    supported by, or acts in furtherance of the exempt health
19    care purposes of at least one of those hospital owners'
20    hospitals.
21        (4) "Hospital system" means a hospital and one or more
22    other hospitals or hospital affiliates related by common
23    control or ownership.
24        (5) "Control" relating to hospital owners, hospital
25    affiliates, or hospital systems means possession, direct
26    or indirect, of the power to direct or cause the direction

 

 

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1    of the management and policies of the entity, whether
2    through ownership of assets, membership interest, other
3    voting or governance rights, by contract or otherwise.
4        (6) "Hospital applicant" means a hospital owner or
5    hospital affiliate that files an application for an
6    exemption or renewal of exemption under this Section.
7        (7) "Relevant hospital entity" means (A) the hospital
8    owner, in the case of a hospital applicant that is a
9    hospital owner, and (B) at the election of a hospital
10    applicant that is a hospital affiliate, either (i) the
11    hospital affiliate or (ii) the hospital system to which
12    the hospital applicant belongs, including any hospitals or
13    hospital affiliates that are related by common control or
14    ownership.
15        (8) "Subject property" means property used for the
16    calculation under subsection (b) of this Section.
17        (9) "Hospital year" means the fiscal year of the
18    relevant hospital entity, or the fiscal year of one of the
19    hospital owners in the hospital system if the relevant
20    hospital entity is a hospital system with members with
21    different fiscal years, that ends in the year for which
22    the exemption is sought.
23    (i) It is the intent of the General Assembly that any
24exemptions taken, granted, or renewed under this Section prior
25to the effective date of this amendatory Act of the 100th
26General Assembly are hereby validated.

 

 

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1    (j) It is the intent of the General Assembly that the
2exemption under this Section applies on a continuous basis. If
3this amendatory Act of the 102nd General Assembly takes effect
4after July 1, 2022, any exemptions taken, granted, or renewed
5under this Section on or after July 1, 2022 and prior to the
6effective date of this amendatory Act of the 102nd General
7Assembly are hereby validated.
8    (k) This Section is exempt from the provisions of Section
92-70.
10(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 
11
ARTICLE 30. ORGAN DONATION

 
12    Section 30-5. The Illinois Income Tax Act is amended by
13changing Section 704A as follows:
 
14    (35 ILCS 5/704A)
15    Sec. 704A. Employer's return and payment of tax withheld.
16    (a) In general, every employer who deducts and withholds
17or is required to deduct and withhold tax under this Act on or
18after January 1, 2008 shall make those payments and returns as
19provided in this Section.
20    (b) Returns. Every employer shall, in the form and manner
21required by the Department, make returns with respect to taxes
22withheld or required to be withheld under this Article 7 for
23each quarter beginning on or after January 1, 2008, on or

 

 

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1before the last day of the first month following the close of
2that quarter.
3    (c) Payments. With respect to amounts withheld or required
4to be withheld on or after January 1, 2008:
5        (1) Semi-weekly payments. For each calendar year, each
6    employer who withheld or was required to withhold more
7    than $12,000 during the one-year period ending on June 30
8    of the immediately preceding calendar year, payment must
9    be made:
10            (A) on or before each Friday of the calendar year,
11        for taxes withheld or required to be withheld on the
12        immediately preceding Saturday, Sunday, Monday, or
13        Tuesday;
14            (B) on or before each Wednesday of the calendar
15        year, for taxes withheld or required to be withheld on
16        the immediately preceding Wednesday, Thursday, or
17        Friday.
18        Beginning with calendar year 2011, payments made under
19    this paragraph (1) of subsection (c) must be made by
20    electronic funds transfer.
21        (2) Semi-weekly payments. Any employer who withholds
22    or is required to withhold more than $12,000 in any
23    quarter of a calendar year is required to make payments on
24    the dates set forth under item (1) of this subsection (c)
25    for each remaining quarter of that calendar year and for
26    the subsequent calendar year.

 

 

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1        (3) Monthly payments. Each employer, other than an
2    employer described in items (1) or (2) of this subsection,
3    shall pay to the Department, on or before the 15th day of
4    each month the taxes withheld or required to be withheld
5    during the immediately preceding month.
6        (4) Payments with returns. Each employer shall pay to
7    the Department, on or before the due date for each return
8    required to be filed under this Section, any tax withheld
9    or required to be withheld during the period for which the
10    return is due and not previously paid to the Department.
11    (d) Regulatory authority. The Department may, by rule:
12        (1) Permit employers, in lieu of the requirements of
13    subsections (b) and (c), to file annual returns due on or
14    before January 31 of the year for taxes withheld or
15    required to be withheld during the previous calendar year
16    and, if the aggregate amounts required to be withheld by
17    the employer under this Article 7 (other than amounts
18    required to be withheld under Section 709.5) do not exceed
19    $1,000 for the previous calendar year, to pay the taxes
20    required to be shown on each such return no later than the
21    due date for such return.
22        (2) Provide that any payment required to be made under
23    subsection (c)(1) or (c)(2) is deemed to be timely to the
24    extent paid by electronic funds transfer on or before the
25    due date for deposit of federal income taxes withheld
26    from, or federal employment taxes due with respect to, the

 

 

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1    wages from which the Illinois taxes were withheld.
2        (3) Designate one or more depositories to which
3    payment of taxes required to be withheld under this
4    Article 7 must be paid by some or all employers.
5        (4) Increase the threshold dollar amounts at which
6    employers are required to make semi-weekly payments under
7    subsection (c)(1) or (c)(2).
8    (e) Annual return and payment. Every employer who deducts
9and withholds or is required to deduct and withhold tax from a
10person engaged in domestic service employment, as that term is
11defined in Section 3510 of the Internal Revenue Code, may
12comply with the requirements of this Section with respect to
13such employees by filing an annual return and paying the taxes
14required to be deducted and withheld on or before the 15th day
15of the fourth month following the close of the employer's
16taxable year. The Department may allow the employer's return
17to be submitted with the employer's individual income tax
18return or to be submitted with a return due from the employer
19under Section 1400.2 of the Unemployment Insurance Act.
20    (f) Magnetic media and electronic filing. With respect to
21taxes withheld in calendar years prior to 2017, any W-2 Form
22that, under the Internal Revenue Code and regulations
23promulgated thereunder, is required to be submitted to the
24Internal Revenue Service on magnetic media or electronically
25must also be submitted to the Department on magnetic media or
26electronically for Illinois purposes, if required by the

 

 

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1Department.
2    With respect to taxes withheld in 2017 and subsequent
3calendar years, the Department may, by rule, require that any
4return (including any amended return) under this Section and
5any W-2 Form that is required to be submitted to the Department
6must be submitted on magnetic media or electronically.
7    The due date for submitting W-2 Forms shall be as
8prescribed by the Department by rule.
9    (g) For amounts deducted or withheld after December 31,
102009, a taxpayer who makes an election under subsection (f) of
11Section 5-15 of the Economic Development for a Growing Economy
12Tax Credit Act for a taxable year shall be allowed a credit
13against payments due under this Section for amounts withheld
14during the first calendar year beginning after the end of that
15taxable year equal to the amount of the credit for the
16incremental income tax attributable to full-time employees of
17the taxpayer awarded to the taxpayer by the Department of
18Commerce and Economic Opportunity under the Economic
19Development for a Growing Economy Tax Credit Act for the
20taxable year and credits not previously claimed and allowed to
21be carried forward under Section 211(4) of this Act as
22provided in subsection (f) of Section 5-15 of the Economic
23Development for a Growing Economy Tax Credit Act. The credit
24or credits may not reduce the taxpayer's obligation for any
25payment due under this Section to less than zero. If the amount
26of the credit or credits exceeds the total payments due under

 

 

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1this Section with respect to amounts withheld during the
2calendar year, the excess may be carried forward and applied
3against the taxpayer's liability under this Section in the
4succeeding calendar years as allowed to be carried forward
5under paragraph (4) of Section 211 of this Act. The credit or
6credits shall be applied to the earliest year for which there
7is a tax liability. If there are credits from more than one
8taxable year that are available to offset a liability, the
9earlier credit shall be applied first. Each employer who
10deducts and withholds or is required to deduct and withhold
11tax under this Act and who retains income tax withholdings
12under subsection (f) of Section 5-15 of the Economic
13Development for a Growing Economy Tax Credit Act must make a
14return with respect to such taxes and retained amounts in the
15form and manner that the Department, by rule, requires and pay
16to the Department or to a depositary designated by the
17Department those withheld taxes not retained by the taxpayer.
18For purposes of this subsection (g), the term taxpayer shall
19include taxpayer and members of the taxpayer's unitary
20business group as defined under paragraph (27) of subsection
21(a) of Section 1501 of this Act. This Section is exempt from
22the provisions of Section 250 of this Act. No credit awarded
23under the Economic Development for a Growing Economy Tax
24Credit Act for agreements entered into on or after January 1,
252015 may be credited against payments due under this Section.
26    (g-1) For amounts deducted or withheld after December 31,

 

 

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12024, a taxpayer who makes an election under the Reimagining
2Electric Vehicles in Illinois Act shall be allowed a credit
3against payments due under this Section for amounts withheld
4during the first quarterly reporting period beginning after
5the certificate is issued equal to the portion of the REV
6Illinois Credit attributable to the incremental income tax
7attributable to new employees and retained employees as
8certified by the Department of Commerce and Economic
9Opportunity pursuant to an agreement with the taxpayer under
10the Reimagining Electric Vehicles in Illinois Act for the
11taxable year. The credit or credits may not reduce the
12taxpayer's obligation for any payment due under this Section
13to less than zero. If the amount of the credit or credits
14exceeds the total payments due under this Section with respect
15to amounts withheld during the quarterly reporting period, the
16excess may be carried forward and applied against the
17taxpayer's liability under this Section in the succeeding
18quarterly reporting period as allowed to be carried forward
19under paragraph (4) of Section 211 of this Act. The credit or
20credits shall be applied to the earliest quarterly reporting
21period for which there is a tax liability. If there are credits
22from more than one quarterly reporting period that are
23available to offset a liability, the earlier credit shall be
24applied first. Each employer who deducts and withholds or is
25required to deduct and withhold tax under this Act and who
26retains income tax withholdings this subsection must make a

 

 

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1return with respect to such taxes and retained amounts in the
2form and manner that the Department, by rule, requires and pay
3to the Department or to a depositary designated by the
4Department those withheld taxes not retained by the taxpayer.
5For purposes of this subsection (g-1), the term taxpayer shall
6include taxpayer and members of the taxpayer's unitary
7business group as defined under paragraph (27) of subsection
8(a) of Section 1501 of this Act. This Section is exempt from
9the provisions of Section 250 of this Act.
10    (h) An employer may claim a credit against payments due
11under this Section for amounts withheld during the first
12calendar year ending after the date on which a tax credit
13certificate was issued under Section 35 of the Small Business
14Job Creation Tax Credit Act. The credit shall be equal to the
15amount shown on the certificate, but may not reduce the
16taxpayer's obligation for any payment due under this Section
17to less than zero. If the amount of the credit exceeds the
18total payments due under this Section with respect to amounts
19withheld during the calendar year, the excess may be carried
20forward and applied against the taxpayer's liability under
21this Section in the 5 succeeding calendar years. The credit
22shall be applied to the earliest year for which there is a tax
23liability. If there are credits from more than one calendar
24year that are available to offset a liability, the earlier
25credit shall be applied first. This Section is exempt from the
26provisions of Section 250 of this Act.

 

 

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1    (i) Each employer with 50 or fewer full-time equivalent
2employees during the reporting period may claim a credit
3against the payments due under this Section for each qualified
4employee in an amount equal to the maximum credit allowable.
5The credit may be taken against payments due for reporting
6periods that begin on or after January 1, 2020, and end on or
7before December 31, 2027. An employer may not claim a credit
8for an employee who has worked fewer than 90 consecutive days
9immediately preceding the reporting period; however, such
10credits may accrue during that 90-day period and be claimed
11against payments under this Section for future reporting
12periods after the employee has worked for the employer at
13least 90 consecutive days. In no event may the credit exceed
14the employer's liability for the reporting period. Each
15employer who deducts and withholds or is required to deduct
16and withhold tax under this Act and who retains income tax
17withholdings under this subsection must make a return with
18respect to such taxes and retained amounts in the form and
19manner that the Department, by rule, requires and pay to the
20Department or to a depositary designated by the Department
21those withheld taxes not retained by the employer.
22    For each reporting period, the employer may not claim a
23credit or credits for more employees than the number of
24employees making less than the minimum or reduced wage for the
25current calendar year during the last reporting period of the
26preceding calendar year. Notwithstanding any other provision

 

 

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1of this subsection, an employer shall not be eligible for
2credits for a reporting period unless the average wage paid by
3the employer per employee for all employees making less than
4$55,000 during the reporting period is greater than the
5average wage paid by the employer per employee for all
6employees making less than $55,000 during the same reporting
7period of the prior calendar year.
8    For purposes of this subsection (i):
9    "Compensation paid in Illinois" has the meaning ascribed
10to that term under Section 304(a)(2)(B) of this Act.
11    "Employer" and "employee" have the meaning ascribed to
12those terms in the Minimum Wage Law, except that "employee"
13also includes employees who work for an employer with fewer
14than 4 employees. Employers that operate more than one
15establishment pursuant to a franchise agreement or that
16constitute members of a unitary business group shall aggregate
17their employees for purposes of determining eligibility for
18the credit.
19    "Full-time equivalent employees" means the ratio of the
20number of paid hours during the reporting period and the
21number of working hours in that period.
22    "Maximum credit" means the percentage listed below of the
23difference between the amount of compensation paid in Illinois
24to employees who are paid not more than the required minimum
25wage reduced by the amount of compensation paid in Illinois to
26employees who were paid less than the current required minimum

 

 

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1wage during the reporting period prior to each increase in the
2required minimum wage on January 1. If an employer pays an
3employee more than the required minimum wage and that employee
4previously earned less than the required minimum wage, the
5employer may include the portion that does not exceed the
6required minimum wage as compensation paid in Illinois to
7employees who are paid not more than the required minimum
8wage.
9        (1) 25% for reporting periods beginning on or after
10    January 1, 2020 and ending on or before December 31, 2020;
11        (2) 21% for reporting periods beginning on or after
12    January 1, 2021 and ending on or before December 31, 2021;
13        (3) 17% for reporting periods beginning on or after
14    January 1, 2022 and ending on or before December 31, 2022;
15        (4) 13% for reporting periods beginning on or after
16    January 1, 2023 and ending on or before December 31, 2023;
17        (5) 9% for reporting periods beginning on or after
18    January 1, 2024 and ending on or before December 31, 2024;
19        (6) 5% for reporting periods beginning on or after
20    January 1, 2025 and ending on or before December 31, 2025.
21    The amount computed under this subsection may continue to
22be claimed for reporting periods beginning on or after January
231, 2026 and:
24        (A) ending on or before December 31, 2026 for
25    employers with more than 5 employees; or
26        (B) ending on or before December 31, 2027 for

 

 

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1    employers with no more than 5 employees.
2    "Qualified employee" means an employee who is paid not
3more than the required minimum wage and has an average wage
4paid per hour by the employer during the reporting period
5equal to or greater than his or her average wage paid per hour
6by the employer during each reporting period for the
7immediately preceding 12 months. A new qualified employee is
8deemed to have earned the required minimum wage in the
9preceding reporting period.
10    "Reporting period" means the quarter for which a return is
11required to be filed under subsection (b) of this Section.
12    (j) For reporting periods beginning on or after January 1,
132023, if a private employer grants all of its employees the
14option of taking a paid leave of absence of at least 30 days
15for the purpose of serving as an organ donor or bone marrow
16donor, then the private employer may take a credit against the
17payments due under this Section in an amount equal to the
18amount withheld under this Section with respect to wages paid
19while the employee is on organ donation leave, not to exceed
20$1,000 in withholdings for each employee who takes organ
21donation leave. To be eligible for the credit, such a leave of
22absence must be taken without loss of pay, vacation time,
23compensatory time, personal days, or sick time for at least
24the first 30 days of the leave of absence. The private employer
25shall adopt rules governing organ donation leave, including
26rules that (i) establish conditions and procedures for

 

 

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1requesting and approving leave and (ii) require medical
2documentation of the proposed organ or bone marrow donation
3before leave is approved by the private employer. A private
4employer must provide, in the manner required by the
5Department, documentation from the employee's medical
6provider, which the private employer receives from the
7employee, that verifies the employee's organ donation. The
8private employer must also provide, in the manner required by
9the Department, documentation that shows that a qualifying
10organ donor leave policy was in place and offered to all
11qualifying employees at the time the leave was taken. For the
12private employer to receive the tax credit, the employee
13taking organ donor leave must allow for the applicable medical
14records to be disclosed to the Department. If the private
15employer cannot provide the required documentation to the
16Department, then the private employer is ineligible for the
17credit under this Section. A private employer must also
18provide, in the form required by the Department, any
19additional documentation or information required by the
20Department to administer the credit under this Section. The
21credit under this subsection (j) shall be taken within one
22year after the date upon which the organ donation leave
23begins. If the leave taken spans into a second tax year, the
24employer qualifies for the allowable credit in the later of
25the 2 years. If the amount of credit exceeds the tax liability
26for the year, the excess may be carried and applied to the tax

 

 

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1liability for the 3 taxable years following the excess credit
2year. The tax credit shall be applied to the earliest year for
3which there is a tax liability. If there are credits for more
4than one year that are available to offset liability, the
5earlier credit shall be applied first.
6    Nothing in this subsection (j) prohibits a private
7employer from providing an unpaid leave of absence to its
8employees for the purpose of serving as an organ donor or bone
9marrow donor; however, if the employer's policy provides for
10fewer than 30 days of paid leave for organ or bone marrow
11donation, then the employer shall not be eligible for the
12credit under this Section.
13    As used in this subsection (j):
14        "Organ" means any biological tissue of the human body
15    that may be donated by a living donor, including, but not
16    limited to, the kidney, liver, lung, pancreas, intestine,
17    bone, skin, or any subpart of those organs.
18        "Organ donor" means a person from whose body an organ
19    is taken to be transferred to the body of another person.
20        "Private employer" means a sole proprietorship,
21    corporation, partnership, limited liability company, or
22    other entity with one or more employees. "Private
23    employer" does not include a municipality, county, State
24    agency, or other public employer.
25    This subsection (j) is exempt from the provisions of
26Section 250 of this Act.

 

 

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1(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21.)
 
2
ARTICLE 40. TAX REBATES

 
3    Section 40-3. The Illinois Administrative Procedure Act is
4amended by adding Section 5-45.21 as follows:
 
5    (5 ILCS 100/5-45.21 new)
6    Sec. 5-45.21. Emergency rulemaking. To provide for the
7expeditious and timely implementation of this amendatory Act
8of the 102nd General Assembly, emergency rules implementing
9Sections 208.5 and 212.1 of the Illinois Income Tax Act may be
10adopted in accordance with Section 5-45 by the Department of
11Revenue. The adoption of emergency rules authorized by Section
125-45 and this Section is deemed to be necessary for the public
13interest, safety, and welfare.
14    This Section is repealed one year after the effective date
15of this amendatory Act of the 102nd General Assembly.
 
16    Section 40-5. The State Finance Act is amended by changing
17Section 8g-1 as follows:
 
18    (30 ILCS 105/8g-1)
19    Sec. 8g-1. Fund transfers.
20    (a) (Blank).
21    (b) (Blank).

 

 

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1    (c) (Blank).
2    (d) (Blank).
3    (e) (Blank).
4    (f) (Blank).
5    (g) (Blank).
6    (h) (Blank).
7    (i) (Blank).
8    (j) (Blank).
9    (k) (Blank).
10    (l) (Blank).
11    (m) (Blank).
12    (n) (Blank).
13    (o) (Blank).
14    (p) (Blank).
15    (q) (Blank).
16    (r) (Blank).
17    (s) (Blank).
18    (t) (Blank).
19    (u) In addition to any other transfers that may be
20provided for by law, on July 1, 2021, or as soon thereafter as
21practical, only as directed by the Director of the Governor's
22Office of Management and Budget, the State Comptroller shall
23direct and the State Treasurer shall transfer the sum of
24$5,000,000 from the General Revenue Fund to the DoIT Special
25Projects Fund, and on June 1, 2022, or as soon thereafter as
26practical, but no later than June 30, 2022, the State

 

 

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1Comptroller shall direct and the State Treasurer shall
2transfer the sum so transferred from the DoIT Special Projects
3Fund to the General Revenue Fund.
4    (v) In addition to any other transfers that may be
5provided for by law, on July 1, 2021, or as soon thereafter as
6practical, the State Comptroller shall direct and the State
7Treasurer shall transfer the sum of $500,000 from the General
8Revenue Fund to the Governor's Administrative Fund.
9    (w) In addition to any other transfers that may be
10provided for by law, on July 1, 2021, or as soon thereafter as
11practical, the State Comptroller shall direct and the State
12Treasurer shall transfer the sum of $500,000 from the General
13Revenue Fund to the Grant Accountability and Transparency
14Fund.
15    (x) In addition to any other transfers that may be
16provided for by law, at a time or times during Fiscal Year 2022
17as directed by the Governor, the State Comptroller shall
18direct and the State Treasurer shall transfer up to a total of
19$20,000,000 from the General Revenue Fund to the Illinois
20Sports Facilities Fund to be credited to the Advance Account
21within the Fund.
22    (y) In addition to any other transfers that may be
23provided for by law, on June 15, 2021, or as soon thereafter as
24practical, but no later than June 30, 2021, the State
25Comptroller shall direct and the State Treasurer shall
26transfer the sum of $100,000,000 from the General Revenue Fund

 

 

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1to the Technology Management Revolving Fund.
2    (z) In addition to any other transfers that may be
3provided by law, on the effective date of this amendatory Act
4of the 102nd General Assembly, or as soon thereafter as
5practical, but no later than June 30, 2022, the State
6Comptroller shall direct and the State Treasurer shall
7transfer the sum of $685,000,000 from the General Revenue Fund
8to the Income Tax Refund Fund. Moneys from this transfer shall
9be used for the purpose of making the one-time rebate payments
10provided under Section 212.1 of the Illinois Income Tax Act.
11    (aa) In addition to any other transfers that may be
12provided by law, beginning on the effective date of this
13amendatory Act of the 102nd General Assembly and until
14December 31, 2023, at the direction of the Department of
15Revenue, the State Comptroller shall direct and the State
16Treasurer shall transfer from the General Revenue Fund to the
17Income Tax Refund Fund any amounts needed beyond the amounts
18transferred in subsection (z) to make payments of the one-time
19rebate payments provided under Section 212.1 of the Illinois
20Income Tax Act.
21(Source: P.A. 101-10, eff. 6-5-19; 101-636, eff. 6-10-20;
22102-16, eff. 6-17-21.)
 
23    Section 40-10. The Illinois Income Tax Act is amended by
24changing Section 901 and by adding Sections 208.5 and 212.1 as
25follows:
 

 

 

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1    (35 ILCS 5/208.5 new)
2    Sec. 208.5. Residential real estate tax rebate.
3    (a) The Department shall pay a one-time rebate to every
4individual taxpayer who files with the Department, on or
5before October 17, 2022, an Illinois income tax return for tax
6year 2021 and who qualifies, in that tax year, under rules
7adopted by the Department, for the income tax credit provided
8under Section 208 of this Act. The amount of the one-time
9rebate provided under this Section shall be the lesser of: (1)
10the amount of the credit provided under Section 208 for tax
11year 2021, including any amounts that would otherwise reduce a
12taxpayer's liability to less than zero, or (2) $300 per
13principal residence. The Department shall develop a process to
14claim a rebate for taxpayers who otherwise would be eligible
15for the rebate under this Section but who did not have an
16obligation to file a 2021 Illinois income tax return because
17their exemption allowance exceeded their Illinois base income.
18    (b) On the effective date of this amendatory Act of the
19102nd General Assembly, or as soon thereafter as practical,
20but no later than June 30, 2022, the State Comptroller shall
21direct and the State Treasurer shall transfer the sum of
22$470,000,000 from the General Revenue Fund to the Income Tax
23Refund Fund.
24    (c) On July 1, 2022, or as soon thereafter as practical,
25the State Comptroller shall direct and the State Treasurer

 

 

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1shall transfer the sum of $50,000,000 from the General Revenue
2Fund to the Income Tax Refund Fund.
3    (d) In addition to any other transfers that may be
4provided for by law, beginning on the effective date of this
5amendatory Act of the 102nd General Assembly and until June
630, 2023, the Director may certify additional transfer amounts
7needed beyond the amounts specified in subsections (b) and
8(c). The State Comptroller shall direct and the State
9Treasurer shall transfer the amounts certified by the Director
10from the General Revenue Fund to the Income Tax Refund Fund.
11    (e) The one-time rebate payments provided under this
12Section shall be paid from the Income Tax Refund Fund.
13    (f) Beginning on July 5, 2022, the Department shall
14certify to the Comptroller the names of the taxpayers who are
15eligible for a one-time rebate under this Section, the amounts
16of those rebates, and any other information that the
17Comptroller requires to direct the payment of the rebates
18provided under this Section to taxpayers.
19    (g) The amount of a rebate under this Section shall not be
20included in the taxpayer's income or resources for the
21purposes of determining eligibility or benefit level in any
22means-tested benefit program administered by a governmental
23entity unless required by federal law.
24    (h) Notwithstanding any other law to the contrary, the
25rebates shall not be subject to offset by the Comptroller
26against any liability owed either to the State or to any unit

 

 

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1of local government.
2    (i) This Section is repealed on January 1, 2024.
 
3    (35 ILCS 5/212.1 new)
4    Sec. 212.1. Individual income tax rebates.
5    (a) Each taxpayer who files an individual income tax
6return under this Act, on or before October 17, 2022, for the
7taxable year that began on January 1, 2021 and whose adjusted
8gross income for the taxable year is less than (i) $400,000, in
9the case of spouses filing a joint federal tax return, or (ii)
10$200,000, in the case of all other taxpayers, is entitled to a
11one-time rebate under this Section. The amount of the rebate
12shall be $50 for single filers and $100 for spouses filing a
13joint return, plus an additional $100 for each person who is
14claimed as a dependent, up to 3 dependents, on the taxpayer's
15federal income tax return for the taxable year that began on
16January 1, 2021. A taxpayer who files an individual income tax
17return under this Act for the taxable year that began on
18January 1, 2021, and who is claimed as a dependent on another
19individual's return for that year, is ineligible for the
20rebate provided under this Section. Spouses who qualify for a
21rebate under this Section and who file a joint return shall be
22treated as a single taxpayer for the purposes of the rebate
23under this Section. For a part-year resident, the amount of
24the rebate under this Section shall be in proportion to the
25amount of the taxpayer's income that is attributable to this

 

 

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1State for the taxable year that began on January 1, 2021.
2Taxpayers who were non-residents for the taxable year that
3began on January 1, 2021 are not entitled to a rebate under
4this Section.
5    (b) Beginning on July 5, 2022, the Department shall
6certify to the Comptroller the names of the taxpayers who are
7eligible for a one-time rebate under this Section, the amounts
8of those rebates, and any other information that the
9Comptroller requires to direct the payment of the rebates
10provided under this Section to taxpayers.
11    (c) If a taxpayer files an amended return indicating that
12the taxpayer is entitled to a rebate under this Section that
13the taxpayer did not receive, or indicating that the taxpayer
14did not receive the full rebate amount to which the taxpayer is
15entitled, then the rebate shall be processed in the same
16manner as a claim for refund under Article 9. If the taxpayer
17files an amended return indicating that the taxpayer received
18a rebate under this Section to which the taxpayer is not
19entitled, then the Department shall issue a notice of
20deficiency as provided in Article 9.
21    (d) The Department shall make the rebate payments
22authorized by this Section from the Income Tax Refund Fund.
23    (e) The amount of a rebate under this Section shall not be
24included in the taxpayer's income or resources for the
25purposes of determining eligibility or benefit level in any
26means-tested benefit program administered by a governmental

 

 

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1entity unless required by federal law.
2    (f) Nothing in this Section prevents a taxpayer from
3receiving the earned income tax credit and the rebate under
4this Section for the same taxable year.
5    (g) Notwithstanding any other law to the contrary, the
6rebates shall not be subject to offset by the Comptroller
7against any liability owed either to the State or to any unit
8of local government.
9    (h) The Department shall adopt rules for the
10implementation of this Section, including emergency rules
11under Section 5-45.21 of the Illinois Administrative Procedure
12Act.
13    (i) This Section is repealed one year after the effective
14date of this amendatory Act of the 102nd General Assembly.
 
15    (35 ILCS 5/901)
16    Sec. 901. Collection authority.
17    (a) In general. The Department shall collect the taxes
18imposed by this Act. The Department shall collect certified
19past due child support amounts under Section 2505-650 of the
20Department of Revenue Law of the Civil Administrative Code of
21Illinois. Except as provided in subsections (b), (c), (e),
22(f), (g), and (h) of this Section, money collected pursuant to
23subsections (a) and (b) of Section 201 of this Act shall be
24paid into the General Revenue Fund in the State treasury;
25money collected pursuant to subsections (c) and (d) of Section

 

 

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1201 of this Act shall be paid into the Personal Property Tax
2Replacement Fund, a special fund in the State Treasury; and
3money collected under Section 2505-650 of the Department of
4Revenue Law of the Civil Administrative Code of Illinois shall
5be paid into the Child Support Enforcement Trust Fund, a
6special fund outside the State Treasury, or to the State
7Disbursement Unit established under Section 10-26 of the
8Illinois Public Aid Code, as directed by the Department of
9Healthcare and Family Services.
10    (b) Local Government Distributive Fund. Beginning August
111, 2017, the Treasurer shall transfer each month from the
12General Revenue Fund to the Local Government Distributive Fund
13an amount equal to the sum of: (i) 6.06% (10% of the ratio of
14the 3% individual income tax rate prior to 2011 to the 4.95%
15individual income tax rate after July 1, 2017) of the net
16revenue realized from the tax imposed by subsections (a) and
17(b) of Section 201 of this Act upon individuals, trusts, and
18estates during the preceding month; (ii) 6.85% (10% of the
19ratio of the 4.8% corporate income tax rate prior to 2011 to
20the 7% corporate income tax rate after July 1, 2017) of the net
21revenue realized from the tax imposed by subsections (a) and
22(b) of Section 201 of this Act upon corporations during the
23preceding month; and (iii) beginning February 1, 2022, 6.06%
24of the net revenue realized from the tax imposed by subsection
25(p) of Section 201 of this Act upon electing pass-through
26entities. Net revenue realized for a month shall be defined as

 

 

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1the revenue from the tax imposed by subsections (a) and (b) of
2Section 201 of this Act which is deposited in the General
3Revenue Fund, the Education Assistance Fund, the Income Tax
4Surcharge Local Government Distributive Fund, the Fund for the
5Advancement of Education, and the Commitment to Human Services
6Fund during the month minus the amount paid out of the General
7Revenue Fund in State warrants during that same month as
8refunds to taxpayers for overpayment of liability under the
9tax imposed by subsections (a) and (b) of Section 201 of this
10Act.
11    Notwithstanding any provision of law to the contrary,
12beginning on July 6, 2017 (the effective date of Public Act
13100-23), those amounts required under this subsection (b) to
14be transferred by the Treasurer into the Local Government
15Distributive Fund from the General Revenue Fund shall be
16directly deposited into the Local Government Distributive Fund
17as the revenue is realized from the tax imposed by subsections
18(a) and (b) of Section 201 of this Act.
19    (c) Deposits Into Income Tax Refund Fund.
20        (1) Beginning on January 1, 1989 and thereafter, the
21    Department shall deposit a percentage of the amounts
22    collected pursuant to subsections (a) and (b)(1), (2), and
23    (3) of Section 201 of this Act into a fund in the State
24    treasury known as the Income Tax Refund Fund. Beginning
25    with State fiscal year 1990 and for each fiscal year
26    thereafter, the percentage deposited into the Income Tax

 

 

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1    Refund Fund during a fiscal year shall be the Annual
2    Percentage. For fiscal year 2011, the Annual Percentage
3    shall be 8.75%. For fiscal year 2012, the Annual
4    Percentage shall be 8.75%. For fiscal year 2013, the
5    Annual Percentage shall be 9.75%. For fiscal year 2014,
6    the Annual Percentage shall be 9.5%. For fiscal year 2015,
7    the Annual Percentage shall be 10%. For fiscal year 2018,
8    the Annual Percentage shall be 9.8%. For fiscal year 2019,
9    the Annual Percentage shall be 9.7%. For fiscal year 2020,
10    the Annual Percentage shall be 9.5%. For fiscal year 2021,
11    the Annual Percentage shall be 9%. For fiscal year 2022,
12    the Annual Percentage shall be 9.25%. For all other fiscal
13    years, the Annual Percentage shall be calculated as a
14    fraction, the numerator of which shall be the amount of
15    refunds approved for payment by the Department during the
16    preceding fiscal year as a result of overpayment of tax
17    liability under subsections (a) and (b)(1), (2), and (3)
18    of Section 201 of this Act plus the amount of such refunds
19    remaining approved but unpaid at the end of the preceding
20    fiscal year, minus the amounts transferred into the Income
21    Tax Refund Fund from the Tobacco Settlement Recovery Fund,
22    and the denominator of which shall be the amounts which
23    will be collected pursuant to subsections (a) and (b)(1),
24    (2), and (3) of Section 201 of this Act during the
25    preceding fiscal year; except that in State fiscal year
26    2002, the Annual Percentage shall in no event exceed 7.6%.

 

 

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1    The Director of Revenue shall certify the Annual
2    Percentage to the Comptroller on the last business day of
3    the fiscal year immediately preceding the fiscal year for
4    which it is to be effective.
5        (2) Beginning on January 1, 1989 and thereafter, the
6    Department shall deposit a percentage of the amounts
7    collected pursuant to subsections (a) and (b)(6), (7), and
8    (8), (c) and (d) of Section 201 of this Act into a fund in
9    the State treasury known as the Income Tax Refund Fund.
10    Beginning with State fiscal year 1990 and for each fiscal
11    year thereafter, the percentage deposited into the Income
12    Tax Refund Fund during a fiscal year shall be the Annual
13    Percentage. For fiscal year 2011, the Annual Percentage
14    shall be 17.5%. For fiscal year 2012, the Annual
15    Percentage shall be 17.5%. For fiscal year 2013, the
16    Annual Percentage shall be 14%. For fiscal year 2014, the
17    Annual Percentage shall be 13.4%. For fiscal year 2015,
18    the Annual Percentage shall be 14%. For fiscal year 2018,
19    the Annual Percentage shall be 17.5%. For fiscal year
20    2019, the Annual Percentage shall be 15.5%. For fiscal
21    year 2020, the Annual Percentage shall be 14.25%. For
22    fiscal year 2021, the Annual Percentage shall be 14%. For
23    fiscal year 2022, the Annual Percentage shall be 15%. For
24    all other fiscal years, the Annual Percentage shall be
25    calculated as a fraction, the numerator of which shall be
26    the amount of refunds approved for payment by the

 

 

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1    Department during the preceding fiscal year as a result of
2    overpayment of tax liability under subsections (a) and
3    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
4    Act plus the amount of such refunds remaining approved but
5    unpaid at the end of the preceding fiscal year, and the
6    denominator of which shall be the amounts which will be
7    collected pursuant to subsections (a) and (b)(6), (7), and
8    (8), (c) and (d) of Section 201 of this Act during the
9    preceding fiscal year; except that in State fiscal year
10    2002, the Annual Percentage shall in no event exceed 23%.
11    The Director of Revenue shall certify the Annual
12    Percentage to the Comptroller on the last business day of
13    the fiscal year immediately preceding the fiscal year for
14    which it is to be effective.
15        (3) The Comptroller shall order transferred and the
16    Treasurer shall transfer from the Tobacco Settlement
17    Recovery Fund to the Income Tax Refund Fund (i)
18    $35,000,000 in January, 2001, (ii) $35,000,000 in January,
19    2002, and (iii) $35,000,000 in January, 2003.
20    (d) Expenditures from Income Tax Refund Fund.
21        (1) Beginning January 1, 1989, money in the Income Tax
22    Refund Fund shall be expended exclusively for the purpose
23    of paying refunds resulting from overpayment of tax
24    liability under Section 201 of this Act and for making
25    transfers pursuant to this subsection (d), except that in
26    State fiscal years 2022 and 2023, moneys in the Income Tax

 

 

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1    Refund Fund shall also be used to pay one-time rebate
2    payments as provided under Sections 208.5 and 212.1.
3        (2) The Director shall order payment of refunds
4    resulting from overpayment of tax liability under Section
5    201 of this Act from the Income Tax Refund Fund only to the
6    extent that amounts collected pursuant to Section 201 of
7    this Act and transfers pursuant to this subsection (d) and
8    item (3) of subsection (c) have been deposited and
9    retained in the Fund.
10        (3) As soon as possible after the end of each fiscal
11    year, the Director shall order transferred and the State
12    Treasurer and State Comptroller shall transfer from the
13    Income Tax Refund Fund to the Personal Property Tax
14    Replacement Fund an amount, certified by the Director to
15    the Comptroller, equal to the excess of the amount
16    collected pursuant to subsections (c) and (d) of Section
17    201 of this Act deposited into the Income Tax Refund Fund
18    during the fiscal year over the amount of refunds
19    resulting from overpayment of tax liability under
20    subsections (c) and (d) of Section 201 of this Act paid
21    from the Income Tax Refund Fund during the fiscal year.
22        (4) As soon as possible after the end of each fiscal
23    year, the Director shall order transferred and the State
24    Treasurer and State Comptroller shall transfer from the
25    Personal Property Tax Replacement Fund to the Income Tax
26    Refund Fund an amount, certified by the Director to the

 

 

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1    Comptroller, equal to the excess of the amount of refunds
2    resulting from overpayment of tax liability under
3    subsections (c) and (d) of Section 201 of this Act paid
4    from the Income Tax Refund Fund during the fiscal year
5    over the amount collected pursuant to subsections (c) and
6    (d) of Section 201 of this Act deposited into the Income
7    Tax Refund Fund during the fiscal year.
8        (4.5) As soon as possible after the end of fiscal year
9    1999 and of each fiscal year thereafter, the Director
10    shall order transferred and the State Treasurer and State
11    Comptroller shall transfer from the Income Tax Refund Fund
12    to the General Revenue Fund any surplus remaining in the
13    Income Tax Refund Fund as of the end of such fiscal year;
14    excluding for fiscal years 2000, 2001, and 2002 amounts
15    attributable to transfers under item (3) of subsection (c)
16    less refunds resulting from the earned income tax credit,
17    and excluding for fiscal year 2022 amounts attributable to
18    transfers from the General Revenue Fund authorized by this
19    amendatory Act of the 102nd General Assembly.
20        (5) This Act shall constitute an irrevocable and
21    continuing appropriation from the Income Tax Refund Fund
22    for the purposes purpose of (i) paying refunds upon the
23    order of the Director in accordance with the provisions of
24    this Section and (ii) paying one-time rebate payments
25    under Sections 208.5 and 212.1.
26    (e) Deposits into the Education Assistance Fund and the

 

 

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1Income Tax Surcharge Local Government Distributive Fund. On
2July 1, 1991, and thereafter, of the amounts collected
3pursuant to subsections (a) and (b) of Section 201 of this Act,
4minus deposits into the Income Tax Refund Fund, the Department
5shall deposit 7.3% into the Education Assistance Fund in the
6State Treasury. Beginning July 1, 1991, and continuing through
7January 31, 1993, of the amounts collected pursuant to
8subsections (a) and (b) of Section 201 of the Illinois Income
9Tax Act, minus deposits into the Income Tax Refund Fund, the
10Department shall deposit 3.0% into the Income Tax Surcharge
11Local Government Distributive Fund in the State Treasury.
12Beginning February 1, 1993 and continuing through June 30,
131993, of the amounts collected pursuant to subsections (a) and
14(b) of Section 201 of the Illinois Income Tax Act, minus
15deposits into the Income Tax Refund Fund, the Department shall
16deposit 4.4% into the Income Tax Surcharge Local Government
17Distributive Fund in the State Treasury. Beginning July 1,
181993, and continuing through June 30, 1994, of the amounts
19collected under subsections (a) and (b) of Section 201 of this
20Act, minus deposits into the Income Tax Refund Fund, the
21Department shall deposit 1.475% into the Income Tax Surcharge
22Local Government Distributive Fund in the State Treasury.
23    (f) Deposits into the Fund for the Advancement of
24Education. Beginning February 1, 2015, the Department shall
25deposit the following portions of the revenue realized from
26the tax imposed upon individuals, trusts, and estates by

 

 

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1subsections (a) and (b) of Section 201 of this Act, minus
2deposits into the Income Tax Refund Fund, into the Fund for the
3Advancement of Education:
4        (1) beginning February 1, 2015, and prior to February
5    1, 2025, 1/30; and
6        (2) beginning February 1, 2025, 1/26.
7    If the rate of tax imposed by subsection (a) and (b) of
8Section 201 is reduced pursuant to Section 201.5 of this Act,
9the Department shall not make the deposits required by this
10subsection (f) on or after the effective date of the
11reduction.
12    (g) Deposits into the Commitment to Human Services Fund.
13Beginning February 1, 2015, the Department shall deposit the
14following portions of the revenue realized from the tax
15imposed upon individuals, trusts, and estates by subsections
16(a) and (b) of Section 201 of this Act, minus deposits into the
17Income Tax Refund Fund, into the Commitment to Human Services
18Fund:
19        (1) beginning February 1, 2015, and prior to February
20    1, 2025, 1/30; and
21        (2) beginning February 1, 2025, 1/26.
22    If the rate of tax imposed by subsection (a) and (b) of
23Section 201 is reduced pursuant to Section 201.5 of this Act,
24the Department shall not make the deposits required by this
25subsection (g) on or after the effective date of the
26reduction.

 

 

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1    (h) Deposits into the Tax Compliance and Administration
2Fund. Beginning on the first day of the first calendar month to
3occur on or after August 26, 2014 (the effective date of Public
4Act 98-1098), each month the Department shall pay into the Tax
5Compliance and Administration Fund, to be used, subject to
6appropriation, to fund additional auditors and compliance
7personnel at the Department, an amount equal to 1/12 of 5% of
8the cash receipts collected during the preceding fiscal year
9by the Audit Bureau of the Department from the tax imposed by
10subsections (a), (b), (c), and (d) of Section 201 of this Act,
11net of deposits into the Income Tax Refund Fund made from those
12cash receipts.
13(Source: P.A. 101-8, see Section 99 for effective date;
14101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-636, eff.
156-10-20; 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658,
16eff. 8-27-21; revised 10-19-21.)
 
17
ARTICLE 45. MOTOR FUEL

 
18    Section 45-3. The State Finance Act is amended by changing
19Section 6z-108 as follows:
 
20    (30 ILCS 105/6z-108)
21    Sec. 6z-108. Transportation Renewal Fund.
22    (a) The Transportation Renewal Fund is created as a
23special fund in the State treasury and shall receive Motor

 

 

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1Fuel Tax revenues as directed by Sections 2a and Section 8b of
2the Motor Fuel Tax Law.
3    (b) Money in the Transportation Renewal Fund shall be used
4exclusively for transportation-related purposes as described
5in Section 11 of Article IX of the Illinois Constitution of
61970.
7(Source: P.A. 101-30, eff. 6-28-19.)
 
8    Section 45-5. The Motor Fuel Tax Law is amended by
9changing Sections 2, 8a, and 17 as follows:
 
10    (35 ILCS 505/2)  (from Ch. 120, par. 418)
11    Sec. 2. A tax is imposed on the privilege of operating
12motor vehicles upon the public highways and recreational-type
13watercraft upon the waters of this State.
14    (a) Prior to August 1, 1989, the tax is imposed at the rate
15of 13 cents per gallon on all motor fuel used in motor vehicles
16operating on the public highways and recreational type
17watercraft operating upon the waters of this State. Beginning
18on August 1, 1989 and until January 1, 1990, the rate of the
19tax imposed in this paragraph shall be 16 cents per gallon.
20Beginning January 1, 1990 and until July 1, 2019, the rate of
21tax imposed in this paragraph, including the tax on compressed
22natural gas, shall be 19 cents per gallon. Beginning July 1,
232019 and until July 1, 2020, the rate of tax imposed in this
24paragraph shall be 38 cents per gallon. Beginning July 1, 2020

 

 

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1and until July 1, 2021, the rate of tax imposed in this
2paragraph shall be 38.7 cents per gallon. Beginning July 1,
32021 and until January 1, 2023, the rate of tax imposed in this
4paragraph shall be 39.2 cents per gallon. On January 1, 2023,
5the rate of tax imposed in this paragraph shall be increased by
6an amount equal to the percentage increase, if any, in the
7Consumer Price Index for All Urban Consumers for all items
8published by the United States Department of Labor for the 12
9months ending in September of 2022. On July 1, 2023, and on
10July 1 of each subsequent year, the rate of tax imposed in this
11paragraph shall be and increased on July 1 of each subsequent
12year by an amount equal to the percentage increase, if any, in
13the Consumer Price Index for All Urban Consumers for all items
14published by the United States Department of Labor for the 12
15months ending in March of the year in which the increase takes
16place each year. The rate shall be rounded to the nearest
17one-tenth of one cent.
18    (a-5) Beginning on July 1, 2022 and through December 31,
192022, each retailer of motor fuel shall cause the following
20notice to be posted in a prominently visible place on each
21retail dispensing device that is used to dispense motor fuel
22in the State of Illinois: "As of July 1, 2022, the State of
23Illinois has suspended the inflation adjustment to the motor
24fuel tax through December 31, 2022. The price on this pump
25should reflect the suspension of the tax increase." The notice
26shall be printed in bold print on a sign that is no smaller

 

 

10200HB1539sam001- 147 -LRB102 03555 HLH 39048 a

1than 4 inches by 8 inches. The sign shall be clearly visible to
2customers. Any retailer who fails to post or maintain a
3required sign through December 31, 2022 is guilty of a petty
4offense for which the fine shall be $500 per day per each
5retail premises where a violation occurs.
6    (b) Until July 1, 2019, the tax on the privilege of
7operating motor vehicles which use diesel fuel, liquefied
8natural gas, or propane shall be the rate according to
9paragraph (a) plus an additional 2 1/2 cents per gallon.
10Beginning July 1, 2019, the tax on the privilege of operating
11motor vehicles which use diesel fuel, liquefied natural gas,
12or propane shall be the rate according to subsection (a) plus
13an additional 7.5 cents per gallon. "Diesel fuel" is defined
14as any product intended for use or offered for sale as a fuel
15for engines in which the fuel is injected into the combustion
16chamber and ignited by pressure without electric spark.
17    (c) A tax is imposed upon the privilege of engaging in the
18business of selling motor fuel as a retailer or reseller on all
19motor fuel used in motor vehicles operating on the public
20highways and recreational type watercraft operating upon the
21waters of this State: (1) at the rate of 3 cents per gallon on
22motor fuel owned or possessed by such retailer or reseller at
2312:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
24per gallon on motor fuel owned or possessed by such retailer or
25reseller at 12:01 A.M. on January 1, 1990.
26    Retailers and resellers who are subject to this additional

 

 

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1tax shall be required to inventory such motor fuel and pay this
2additional tax in a manner prescribed by the Department of
3Revenue.
4    The tax imposed in this paragraph (c) shall be in addition
5to all other taxes imposed by the State of Illinois or any unit
6of local government in this State.
7    (d) Except as provided in Section 2a, the collection of a
8tax based on gallonage of gasoline used for the propulsion of
9any aircraft is prohibited on and after October 1, 1979, and
10the collection of a tax based on gallonage of special fuel used
11for the propulsion of any aircraft is prohibited on and after
12December 1, 2019.
13    (e) The collection of a tax, based on gallonage of all
14products commonly or commercially known or sold as 1-K
15kerosene, regardless of its classification or uses, is
16prohibited (i) on and after July 1, 1992 until December 31,
171999, except when the 1-K kerosene is either: (1) delivered
18into bulk storage facilities of a bulk user, or (2) delivered
19directly into the fuel supply tanks of motor vehicles and (ii)
20on and after January 1, 2000. Beginning on January 1, 2000, the
21collection of a tax, based on gallonage of all products
22commonly or commercially known or sold as 1-K kerosene,
23regardless of its classification or uses, is prohibited except
24when the 1-K kerosene is delivered directly into a storage
25tank that is located at a facility that has withdrawal
26facilities that are readily accessible to and are capable of

 

 

10200HB1539sam001- 149 -LRB102 03555 HLH 39048 a

1dispensing 1-K kerosene into the fuel supply tanks of motor
2vehicles. For purposes of this subsection (e), a facility is
3considered to have withdrawal facilities that are not "readily
4accessible to and capable of dispensing 1-K kerosene into the
5fuel supply tanks of motor vehicles" only if the 1-K kerosene
6is delivered from: (i) a dispenser hose that is short enough so
7that it will not reach the fuel supply tank of a motor vehicle
8or (ii) a dispenser that is enclosed by a fence or other
9physical barrier so that a vehicle cannot pull alongside the
10dispenser to permit fueling.
11    Any person who sells or uses 1-K kerosene for use in motor
12vehicles upon which the tax imposed by this Law has not been
13paid shall be liable for any tax due on the sales or use of 1-K
14kerosene.
15(Source: P.A. 100-9, eff. 7-1-17; 101-10, eff. 6-5-19; 101-32,
16eff. 6-28-19; 101-604, eff. 12-13-19.)
 
17    (35 ILCS 505/8a)  (from Ch. 120, par. 424a)
18    Sec. 8a. Deposit of proceeds. Until July 1, 2022 and
19beginning again on July 1, 2023, all All money received by the
20Department under Section 2a of this Act, except money received
21from taxes on aviation fuel sold or used on or after December
221, 2019 and through December 31, 2020, shall be deposited in
23the Underground Storage Tank Fund created by Section 57.11 of
24the Environmental Protection Act, as now or hereafter amended.
25All money received by the Department under Section 2a of this

 

 

10200HB1539sam001- 150 -LRB102 03555 HLH 39048 a

1Act for aviation fuel sold or used on or after December 1,
22019, shall be deposited into the State Aviation Program Fund.
3This exception for aviation fuel only applies for so long as
4the revenue use requirements of 49 U.S.C. 47107(b) and 49
5U.S.C. 47133 are binding on the State. For purposes of this
6Section, "aviation fuel" means jet fuel and aviation gasoline.
7Beginning on July 1, 2022 and through June 30, 2023, all money
8received by the Department under Section 2a shall be deposited
9in the Transportation Renewal Fund.
10(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 
11    (35 ILCS 505/17)  (from Ch. 120, par. 433)
12    Sec. 17. It is the purpose of Sections 2 and 13a of this
13Act to impose a tax upon the privilege of operating each motor
14vehicle as defined in this Act upon the public highways and the
15waters of this State, such tax to be based upon the consumption
16of motor fuel in such motor vehicle, so far as the same may be
17done, under the Constitution and statutes of the United
18States, and the Constitution of the State of Illinois. It is
19the purpose of Section 2a of this Act to impose a tax upon the
20privilege of importing or receiving in this State fuel for
21sale or use, such tax to be used to fund the Underground
22Storage Tank Fund or the Transportation Renewal Fund. If any
23of the provisions of this Act include transactions which are
24not taxable or are in any other respect unconstitutional, it
25is the intent of the General Assembly that, so far as possible,

 

 

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1the remaining provisions of the Act be given effect.
2(Source: P.A. 86-125.)
 
3    Section 45-10. The Environmental Impact Fee Law is amended
4by changing Section 320 as follows:
 
5    (415 ILCS 125/320)
6    (Section scheduled to be repealed on January 1, 2025)
7    Sec. 320. Deposit of fee receipts. Except as otherwise
8provided in this paragraph, all money received by the
9Department under this Law shall be deposited in the
10Underground Storage Tank Fund created by Section 57.11 of the
11Environmental Protection Act. All money received for aviation
12fuel by the Department under this Law on or after December 1,
132019 and ending with returns due on January 20, 2021, shall be
14immediately paid over by the Department to the State Aviation
15Program Fund. The Department shall only pay such moneys into
16the State Aviation Program Fund under this Act for so long as
17the revenue use requirements of 49 U.S.C. 47107(b) and 49
18U.S.C. 47133 are binding on the State. For purposes of this
19Section, "aviation fuel" means jet fuel and aviation gasoline.
20Beginning July 1, 2022 and through June 30, 2023, all money
21received by the Department under this Law shall be deposited
22into the Transportation Renewal Fund.
23(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 

 

 

10200HB1539sam001- 152 -LRB102 03555 HLH 39048 a

1
ARTICLE 50. ELECTRIC VEHICLES

 
2    Section 50-5. The Reimagining Electric Vehicles in
3Illinois Act is amended by changing Sections 10 and 20 as
4follows:
 
5    (20 ILCS 686/10)
6    Sec. 10. Definitions. As used in this Act:
7    "Advanced battery" means a battery that consists of a
8battery cell that can be integrated into a module, pack, or
9system to be used in energy storage applications, including a
10battery used in an electric vehicle or the electric grid.
11    "Advanced battery component" means a component of an
12advanced battery, including materials, enhancements,
13enclosures, anodes, cathodes, electrolytes, cells, and other
14associated technologies that comprise an advanced battery.
15    "Agreement" means the agreement between a taxpayer and the
16Department under the provisions of Section 45 of this Act.
17    "Applicant" means a taxpayer that (i) operates a business
18in Illinois or is planning to locate a business within the
19State of Illinois and (ii) is engaged in interstate or
20intrastate commerce for the purpose of manufacturing electric
21vehicles, electric vehicle component parts, or electric
22vehicle power supply equipment. "Applicant" does not include a
23taxpayer who closes or substantially reduces by more than 50%
24operations at one location in the State and relocates

 

 

10200HB1539sam001- 153 -LRB102 03555 HLH 39048 a

1substantially the same operation to another location in the
2State. This does not prohibit a Taxpayer from expanding its
3operations at another location in the State. This also does
4not prohibit a Taxpayer from moving its operations from one
5location in the State to another location in the State for the
6purpose of expanding the operation, provided that the
7Department determines that expansion cannot reasonably be
8accommodated within the municipality or county in which the
9business is located, or, in the case of a business located in
10an incorporated area of the county, within the county in which
11the business is located, after conferring with the chief
12elected official of the municipality or county and taking into
13consideration any evidence offered by the municipality or
14county regarding the ability to accommodate expansion within
15the municipality or county.
16    "Battery raw materials" means the raw and processed form
17of a mineral, metal, chemical, or other material used in an
18advanced battery component.
19    "Battery raw materials refining service provider" means a
20business that operates a facility that filters, sifts, and
21treats battery raw materials for use in an advanced battery.
22    "Battery recycling and reuse manufacturer" means a
23manufacturer that is primarily engaged in the recovery,
24retrieval, processing, recycling, or recirculating of battery
25raw materials for new use in electric vehicle batteries.
26    "Capital improvements" means the purchase, renovation,

 

 

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1rehabilitation, or construction of permanent tangible land,
2buildings, structures, equipment, and furnishings in an
3approved project sited in Illinois and expenditures for goods
4or services that are normally capitalized, including
5organizational costs and research and development costs
6incurred in Illinois. For land, buildings, structures, and
7equipment that are leased, the lease must equal or exceed the
8term of the agreement, and the cost of the property shall be
9determined from the present value, using the corporate
10interest rate prevailing at the time of the application, of
11the lease payments.
12    "Credit" means either a "REV Illinois Credit" or a "REV
13Construction Jobs Credit" agreed to between the Department and
14applicant under this Act.
15    "Department" means the Department of Commerce and Economic
16Opportunity.
17    "Director" means the Director of Commerce and Economic
18Opportunity.
19    "Electric vehicle" means a vehicle that is exclusively
20powered by and refueled by electricity, including electricity
21generated through a hydrogen fuel cells or solar technology
22must be plugged in to charge or utilize a pre-charged battery,
23and is permitted to operate on public roadways. "Electric
24vehicle" does not include hybrid electric vehicles, electric
25bicycles, or and extended-range electric vehicles that are
26also equipped with conventional fueled propulsion or auxiliary

 

 

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1engines.
2    "Electric vehicle manufacturer" means a new or existing
3manufacturer that is primarily focused on reequipping,
4expanding, or establishing a manufacturing facility in
5Illinois that produces electric vehicles as defined in this
6Section.
7    "Electric vehicle component parts manufacturer" means a
8new or existing manufacturer that is primarily focused on
9reequipping, expanding, or establishing a manufacturing
10facility in Illinois that produces advanced battery components
11or key components that directly support the electric functions
12of electric vehicles, as defined by this Section.
13    "Electric vehicle power supply equipment" means the
14equipment used specifically for the purpose of delivering
15electricity to an electric vehicle, including hydrogen fuel
16cells or solar refueling infrastructure.
17    "Electric vehicle power supply manufacturer" means a new
18or existing manufacturer that is focused on reequipping,
19expanding, or establishing a manufacturing facility in
20Illinois that produces electric vehicle power supply equipment
21used for the purpose of delivering electricity to an electric
22vehicle, including hydrogen fuel cell or solar refueling
23infrastructure.
24    "Energy Transition Area" means a county with less than
25100,000 people or a municipality that contains one or more of
26the following:

 

 

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1        (1) a fossil fuel plant that was retired from service
2    or has significant reduced service within 6 years before
3    the time of the application or will be retired or have
4    service significantly reduced within 6 years following the
5    time of the application; or
6        (2) a coal mine that was closed or had operations
7    significantly reduced within 6 years before the time of
8    the application or is anticipated to be closed or have
9    operations significantly reduced within 6 years following
10    the time of the application.
11    "Full-time employee" means an individual who is employed
12for consideration for at least 35 hours each week or who
13renders any other standard of service generally accepted by
14industry custom or practice as full-time employment. An
15individual for whom a W-2 is issued by a Professional Employer
16Organization (PEO) is a full-time employee if employed in the
17service of the applicant for consideration for at least 35
18hours each week.
19    "Incremental income tax" means the total amount withheld
20during the taxable year from the compensation of new employees
21and, if applicable, retained employees under Article 7 of the
22Illinois Income Tax Act arising from employment at a project
23that is the subject of an agreement.
24    "Institution of higher education" or "institution" means
25any accredited public or private university, college,
26community college, business, technical, or vocational school,

 

 

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1or other accredited educational institution offering degrees
2and instruction beyond the secondary school level.
3    "Minority person" means a minority person as defined in
4the Business Enterprise for Minorities, Women, and Persons
5with Disabilities Act.
6    "New employee" means a newly-hired full-time employee
7employed to work at the project site and whose work is directly
8related to the project.
9    "Noncompliance date" means, in the case of a taxpayer that
10is not complying with the requirements of the agreement or the
11provisions of this Act, the day following the last date upon
12which the taxpayer was in compliance with the requirements of
13the agreement and the provisions of this Act, as determined by
14the Director, pursuant to Section 70.
15    "Pass-through entity" means an entity that is exempt from
16the tax under subsection (b) or (c) of Section 205 of the
17Illinois Income Tax Act.
18    "Placed in service" means the state or condition of
19readiness, availability for a specifically assigned function,
20and the facility is constructed and ready to conduct its
21facility operations to manufacture goods.
22    "Professional employer organization" (PEO) means an
23employee leasing company, as defined in Section 206.1 of the
24Illinois Unemployment Insurance Act.
25    "Program" means the Reimagining Electric Vehicles in
26Illinois Program (the REV Illinois Program) established in

 

 

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1this Act.
2    "Project" or "REV Illinois Project" means a for-profit
3economic development activity for the manufacture of electric
4vehicles, electric vehicle component parts, or electric
5vehicle power supply equipment which is designated by the
6Department as a REV Illinois Project and is the subject of an
7agreement.
8    "Recycling facility" means a location at which the
9taxpayer disposes of batteries and other component parts in
10manufacturing of electric vehicles, electric vehicle component
11parts, or electric vehicle power supply equipment.
12    "Related member" means a person that, with respect to the
13taxpayer during any portion of the taxable year, is any one of
14the following:
15        (1) An individual stockholder, if the stockholder and
16    the members of the stockholder's family (as defined in
17    Section 318 of the Internal Revenue Code) own directly,
18    indirectly, beneficially, or constructively, in the
19    aggregate, at least 50% of the value of the taxpayer's
20    outstanding stock.
21        (2) A partnership, estate, trust and any partner or
22    beneficiary, if the partnership, estate, or trust, and its
23    partners or beneficiaries own directly, indirectly,
24    beneficially, or constructively, in the aggregate, at
25    least 50% of the profits, capital, stock, or value of the
26    taxpayer.

 

 

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1        (3) A corporation, and any party related to the
2    corporation in a manner that would require an attribution
3    of stock from the corporation under the attribution rules
4    of Section 318 of the Internal Revenue Code, if the
5    Taxpayer owns directly, indirectly, beneficially, or
6    constructively at least 50% of the value of the
7    corporation's outstanding stock.
8        (4) A corporation and any party related to that
9    corporation in a manner that would require an attribution
10    of stock from the corporation to the party or from the
11    party to the corporation under the attribution rules of
12    Section 318 of the Internal Revenue Code, if the
13    corporation and all such related parties own in the
14    aggregate at least 50% of the profits, capital, stock, or
15    value of the taxpayer.
16        (5) A person to or from whom there is an attribution of
17    stock ownership in accordance with Section 1563(e) of the
18    Internal Revenue Code, except, for purposes of determining
19    whether a person is a related member under this paragraph,
20    20% shall be substituted for 5% wherever 5% appears in
21    Section 1563(e) of the Internal Revenue Code.
22    "Retained employee" means a full-time employee employed by
23the taxpayer prior to the term of the Agreement who continues
24to be employed during the term of the agreement whose job
25duties are directly and substantially related to the project.
26For purposes of this definition, "directly and substantially

 

 

10200HB1539sam001- 160 -LRB102 03555 HLH 39048 a

1related to the project" means at least two-thirds of the
2employee's job duties must be directly related to the project
3and the employee must devote at least two-thirds of his or her
4time to the project. The term "retained employee" does not
5include any individual who has a direct or an indirect
6ownership interest of at least 5% in the profits, equity,
7capital, or value of the taxpayer or a child, grandchild,
8parent, or spouse, other than a spouse who is legally
9separated from the individual, of any individual who has a
10direct or indirect ownership of at least 5% in the profits,
11equity, capital, or value of the taxpayer.
12    "REV Illinois credit" means a credit agreed to between the
13Department and the applicant under this Act that is based on
14the incremental income tax attributable to new employees and,
15if applicable, retained employees, and on training costs for
16such employees at the applicant's project.
17    "REV construction jobs credit" means a credit agreed to
18between the Department and the applicant under this Act that
19is based on the incremental income tax attributable to
20construction wages paid in connection with construction of the
21project facilities.
22    "Statewide baseline" means the total number of full-time
23employees of the applicant and any related member employed by
24such entities at the time of application for incentives under
25this Act.
26    "Taxpayer" means an individual, corporation, partnership,

 

 

10200HB1539sam001- 161 -LRB102 03555 HLH 39048 a

1or other entity that has a legal obligation to pay Illinois
2income taxes and file an Illinois income tax return.
3    "Training costs" means costs incurred to upgrade the
4technological skills of full-time employees in Illinois and
5includes: curriculum development; training materials
6(including scrap product costs); trainee domestic travel
7expenses; instructor costs (including wages, fringe benefits,
8tuition and domestic travel expenses); rent, purchase or lease
9of training equipment; and other usual and customary training
10costs. "Training costs" do not include costs associated with
11travel outside the United States (unless the Taxpayer receives
12prior written approval for the travel by the Director based on
13a showing of substantial need or other proof the training is
14not reasonably available within the United States), wages and
15fringe benefits of employees during periods of training, or
16administrative cost related to full-time employees of the
17taxpayer.
18    "Underserved area" means any geographic areas as defined
19in Section 5-5 of the Economic Development for a Growing
20Economy Tax Credit Act.
21(Source: P.A. 102-669, eff. 11-16-21.)
 
22    (20 ILCS 686/20)
23    Sec. 20. REV Illinois Program; project applications.
24    (a) The Reimagining Electric Vehicles in Illinois (REV
25Illinois) Program is hereby established and shall be

 

 

10200HB1539sam001- 162 -LRB102 03555 HLH 39048 a

1administered by the Department. The Program will provide
2financial incentives to any one or more of the following: (1)
3eligible manufacturers of electric vehicles, electric vehicle
4component parts, and electric vehicle power supply equipment;
5(2) battery recycling and reuse manufacturers; or (3) battery
6raw materials refining service providers.
7    (b) Any taxpayer planning a project to be located in
8Illinois may request consideration for designation of its
9project as a REV Illinois Project, by formal written letter of
10request or by formal application to the Department, in which
11the applicant states its intent to make at least a specified
12level of investment and intends to hire a specified number of
13full-time employees at a designated location in Illinois. As
14circumstances require, the Department shall require a formal
15application from an applicant and a formal letter of request
16for assistance.
17    (c) In order to qualify for credits under the REV Illinois
18Program, an Applicant must:
19        (1) for an electric vehicle manufacturer:
20            (A) make an investment of at least $1,500,000,000
21        in capital improvements at the project site;
22            (B) to be placed in service within the State
23        within a 60-month period after approval of the
24        application; and
25            (C) create at least 500 new full-time employee
26        jobs; or

 

 

10200HB1539sam001- 163 -LRB102 03555 HLH 39048 a

1        (2) for an electric vehicle component parts
2    manufacturer:
3            (A) make an investment of at least $300,000,000 in
4        capital improvements at the project site;
5            (B) manufacture one or more parts that are
6        primarily used for electric vehicle manufacturing;
7            (C) to be placed in service within the State
8        within a 60-month period after approval of the
9        application; and
10            (D) create at least 150 new full-time employee
11        jobs; or
12        (3) for an electric vehicle manufacturer, an electric
13    vehicle power supply equipment manufacturer Manufacturer,
14    an or electric vehicle component part manufacturer that
15    does not qualify quality under paragraph (2) above, a
16    battery recycling and reuse manufacturer, or a battery raw
17    materials refining service provider:
18            (A) make an investment of at least $20,000,000 in
19        capital improvements at the project site;
20            (B) for electric vehicle component part
21        manufacturers, manufacture one or more parts that are
22        primarily used for electric vehicle manufacturing;
23            (C) to be placed in service within the State
24        within a 48-month period after approval of the
25        application; and
26            (D) create at least 50 new full-time employee

 

 

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1        jobs; or
2        (4) for an electric vehicle manufacturer or electric
3    vehicle component parts manufacturer with existing
4    operations within Illinois that intends to convert or
5    expand, in whole or in part, the existing facility from
6    traditional manufacturing to primarily electric vehicle
7    manufacturing, electric vehicle component parts
8    manufacturing, or electric vehicle power supply equipment
9    manufacturing:
10            (A) make an investment of at least $100,000,000 in
11        capital improvements at the project site;
12            (B) to be placed in service within the State
13        within a 60-month period after approval of the
14        application; and
15            (C) create the lesser of 75 new full-time employee
16        jobs or new full-time employee jobs equivalent to 10%
17        of the Statewide baseline applicable to the taxpayer
18        and any related member at the time of application.
19    (d) For agreements entered into prior to the effective
20date of this amendatory Act of the 102nd General Assembly, for
21For any applicant creating the full-time employee jobs noted
22in subsection (c), those jobs must have a total compensation
23equal to or greater than 120% of the average wage paid to
24full-time employees in the county where the project is
25located, as determined by the U.S. Bureau of Labor Statistics.
26For agreements entered into on or after the effective date of

 

 

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1this amendatory Act of the 102nd General Assembly, for any
2applicant creating the full-time employee jobs noted in
3subsection (c), those jobs must have a compensation equal to
4or greater than 120% of the average wage paid to full-time
5employees in a similar position within an occupational group
6in the county where the project is located, as determined by
7the U.S. Bureau of Labor Statistics.
8    (e) For any applicant, within 24 months after being placed
9in service, it must certify to the Department that it is carbon
10neutral or has attained certification under one of more of the
11following green building standards:
12        (1) BREEAM for New Construction or BREEAM In-Use;
13        (2) ENERGY STAR;
14        (3) Envision;
15        (4) ISO 50001 - energy management;
16        (5) LEED for Building Design and Construction or LEED
17    for Building Operations and Maintenance;
18        (6) Green Globes for New Construction or Green Globes
19    for Existing Buildings; or
20        (7) UL 3223.
21    (f) Each applicant must outline its hiring plan and
22commitment to recruit and hire full-time employee positions at
23the project site. The hiring plan may include a partnership
24with an institution of higher education to provide
25internships, including, but not limited to, internships
26supported by the Clean Jobs Workforce Network Program, or

 

 

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1full-time permanent employment for students at the project
2site. Additionally, the applicant may create or utilize
3participants from apprenticeship programs that are approved by
4and registered with the United States Department of Labor's
5Bureau of Apprenticeship and Training. The Applicant may apply
6for apprenticeship education expense credits in accordance
7with the provisions set forth in 14 Ill. Admin. Code 522. Each
8applicant is required to report annually, on or before April
915, on the diversity of its workforce in accordance with
10Section 50 of this Act. For existing facilities of applicants
11under paragraph (3) of subsection (b) above, if the taxpayer
12expects a reduction in force due to its transition to
13manufacturing electric vehicle, electric vehicle component
14parts, or electric vehicle power supply equipment, the plan
15submitted under this Section must outline the taxpayer's plan
16to assist with retraining its workforce aligned with the
17taxpayer's adoption of new technologies and anticipated
18efforts to retrain employees through employment opportunities
19within the taxpayer's workforce.
20    (g) Each applicant must demonstrate a contractual or other
21relationship with a recycling facility, or demonstrate its own
22recycling capabilities, at the time of application and report
23annually a continuing contractual or other relationship with a
24recycling facility and the percentage of batteries used in
25electric vehicles recycled throughout the term of the
26agreement.

 

 

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1    (h) A taxpayer may not enter into more than one agreement
2under this Act with respect to a single address or location for
3the same period of time. Also, a taxpayer may not enter into an
4agreement under this Act with respect to a single address or
5location for the same period of time for which the taxpayer
6currently holds an active agreement under the Economic
7Development for a Growing Economy Tax Credit Act. This
8provision does not preclude the applicant from entering into
9an additional agreement after the expiration or voluntary
10termination of an earlier agreement under this Act or under
11the Economic Development for a Growing Economy Tax Credit Act
12to the extent that the taxpayer's application otherwise
13satisfies the terms and conditions of this Act and is approved
14by the Department. An applicant with an existing agreement
15under the Economic Development for a Growing Economy Tax
16Credit Act may submit an application for an agreement under
17this Act after it terminates any existing agreement under the
18Economic Development for a Growing Economy Tax Credit Act with
19respect to the same address or location.
20(Source: P.A. 102-669, eff. 11-16-21.)
 
21
ARTICLE 55. EARNED INCOME TAX CREDIT

 
22    Section 55-5. The Illinois Income Tax Act is amended by
23changing Section 212 as follows:
 

 

 

10200HB1539sam001- 168 -LRB102 03555 HLH 39048 a

1    (35 ILCS 5/212)
2    Sec. 212. Earned income tax credit.
3    (a) With respect to the federal earned income tax credit
4allowed for the taxable year under Section 32 of the federal
5Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
6is entitled to a credit against the tax imposed by subsections
7(a) and (b) of Section 201 in an amount equal to (i) 5% of the
8federal tax credit for each taxable year beginning on or after
9January 1, 2000 and ending prior to December 31, 2012, (ii)
107.5% of the federal tax credit for each taxable year beginning
11on or after January 1, 2012 and ending prior to December 31,
122013, (iii) 10% of the federal tax credit for each taxable year
13beginning on or after January 1, 2013 and beginning prior to
14January 1, 2017, (iv) 14% of the federal tax credit for each
15taxable year beginning on or after January 1, 2017 and
16beginning prior to January 1, 2018, and (v) 18% of the federal
17tax credit for each taxable year beginning on or after January
181, 2018 and beginning prior to January 1, 2023, and (vi) 20% of
19the federal tax credit for each taxable year beginning on or
20after January 1, 2023.
21    For a non-resident or part-year resident, the amount of
22the credit under this Section shall be in proportion to the
23amount of income attributable to this State.
24    (b) For taxable years beginning before January 1, 2003, in
25no event shall a credit under this Section reduce the
26taxpayer's liability to less than zero. For each taxable year

 

 

10200HB1539sam001- 169 -LRB102 03555 HLH 39048 a

1beginning on or after January 1, 2003, if the amount of the
2credit exceeds the income tax liability for the applicable tax
3year, then the excess credit shall be refunded to the
4taxpayer. The amount of a refund shall not be included in the
5taxpayer's income or resources for the purposes of determining
6eligibility or benefit level in any means-tested benefit
7program administered by a governmental entity unless required
8by federal law.
9    (b-5) For taxable years beginning on or after January 1,
102023, each individual taxpayer who has attained the age of 18
11during the taxable year but has not yet attained the age of 25
12is entitled to the credit under paragraph (a) based on the
13federal tax credit for which the taxpayer would have been
14eligible without regard to any age requirements that would
15otherwise apply to individuals without a qualifying child in
16Section 32(c)(1)(A)(ii) of the federal Internal Revenue Code.
17    (b-10) For taxable years beginning on or after January 1,
182023, each individual taxpayer who has attained the age of 65
19or older during the taxable year is entitled to the credit
20under paragraph (a) based on the federal tax credit for which
21the taxpayer would have been eligible without regard to any
22age requirements that would otherwise apply to individuals
23without a qualifying child in Section 32(c)(1)(A)(ii) of the
24federal Internal Revenue Code.
25    (b-15) For taxable years beginning on or after January 1,
262023, each individual taxpayer filing a return using an

 

 

10200HB1539sam001- 170 -LRB102 03555 HLH 39048 a

1individual taxpayer identification number (ITIN) as prescribed
2under Section 6109 of the Internal Revenue Code, other than a
3Social Security number issued pursuant to Section 205(c)(2)(A)
4of the Social Security Act, is entitled to the credit under
5paragraph (a) based on the federal tax credit for which they
6would have been eligible without applying the restrictions
7regarding social security numbers in Section 32(m) of the
8federal Internal Revenue Code.
9    (c) This Section is exempt from the provisions of Section
10250.
11(Source: P.A. 100-22, eff. 7-6-17.)
 
12
ARTICLE 60. GROCERIES

 
13    Section 60-5. The State Finance Act is amended by adding
14Section 5.971 as follows:
 
15    (30 ILCS 105/5.971 new)
16    Sec. 5.971. The Grocery Tax Replacement Fund. This Section
17is repealed January 1, 2024.
 
18    Section 60-10. The State Finance Act is amended by
19changing Sections 6z-17 and 6z-18 and by adding Section 6z-130
20as follows:
 
21    (30 ILCS 105/6z-17)  (from Ch. 127, par. 142z-17)

 

 

10200HB1539sam001- 171 -LRB102 03555 HLH 39048 a

1    Sec. 6z-17. State and Local Sales Tax Reform Fund.
2    (a) After deducting the amount transferred to the Tax
3Compliance and Administration Fund under subsection (b), of
4the money paid into the State and Local Sales Tax Reform Fund:
5(i) subject to appropriation to the Department of Revenue,
6Municipalities having 1,000,000 or more inhabitants shall
7receive 20% and may expend such amount to fund and establish a
8program for developing and coordinating public and private
9resources targeted to meet the affordable housing needs of
10low-income and very low-income households within such
11municipality, (ii) 10% shall be transferred into the Regional
12Transportation Authority Occupation and Use Tax Replacement
13Fund, a special fund in the State treasury which is hereby
14created, (iii) until July 1, 2013, subject to appropriation to
15the Department of Transportation, the Madison County Mass
16Transit District shall receive .6%, and beginning on July 1,
172013, subject to appropriation to the Department of Revenue,
180.6% shall be distributed each month out of the Fund to the
19Madison County Mass Transit District, (iv) the following
20amounts, plus any cumulative deficiency in such transfers for
21prior months, shall be transferred monthly into the Build
22Illinois Fund and credited to the Build Illinois Bond Account
23therein:
24Fiscal YearAmount
251990$2,700,000
2619911,850,000

 

 

10200HB1539sam001- 172 -LRB102 03555 HLH 39048 a

119922,750,000
219932,950,000
3    From Fiscal Year 1994 through Fiscal Year 2025 the
4transfer shall total $3,150,000 monthly, plus any cumulative
5deficiency in such transfers for prior months, and (v) the
6remainder of the money paid into the State and Local Sales Tax
7Reform Fund shall be transferred into the Local Government
8Distributive Fund and, except for municipalities with
91,000,000 or more inhabitants which shall receive no portion
10of such remainder, shall be distributed, subject to
11appropriation, in the manner provided by Section 2 of "An Act
12in relation to State revenue sharing with local government
13entities", approved July 31, 1969, as now or hereafter
14amended. Municipalities with more than 50,000 inhabitants
15according to the 1980 U.S. Census and located within the Metro
16East Mass Transit District receiving funds pursuant to
17provision (v) of this paragraph may expend such amounts to
18fund and establish a program for developing and coordinating
19public and private resources targeted to meet the affordable
20housing needs of low-income and very low-income households
21within such municipality.
22    Moneys transferred from the Grocery Tax Replacement Fund
23to the State and Local Sales Tax Reform Fund under Section
246z-130 shall be treated under this Section in the same manner
25as if they had been remitted with the return on which they were
26reported.

 

 

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1    (b) Beginning on the first day of the first calendar month
2to occur on or after the effective date of this amendatory Act
3of the 98th General Assembly, each month the Department of
4Revenue shall certify to the State Comptroller and the State
5Treasurer, and the State Comptroller shall order transferred
6and the State Treasurer shall transfer from the State and
7Local Sales Tax Reform Fund to the Tax Compliance and
8Administration Fund, an amount equal to 1/12 of 5% of 20% of
9the cash receipts collected during the preceding fiscal year
10by the Audit Bureau of the Department of Revenue under the Use
11Tax Act, the Service Use Tax Act, the Service Occupation Tax
12Act, the Retailers' Occupation Tax Act, and associated local
13occupation and use taxes administered by the Department. The
14amount distributed under subsection (a) each month shall first
15be reduced by the amount transferred to the Tax Compliance and
16Administration Fund under this subsection (b). Moneys
17transferred to the Tax Compliance and Administration Fund
18under this subsection (b) shall be used, subject to
19appropriation, to fund additional auditors and compliance
20personnel at the Department of Revenue.
21(Source: P.A. 98-44, eff. 6-28-13; 98-1098, eff. 8-26-14.)
 
22    (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
23    Sec. 6z-18. Local Government Tax Fund. A portion of the
24money paid into the Local Government Tax Fund from sales of
25tangible personal property taxed at the 1% rate under the

 

 

10200HB1539sam001- 174 -LRB102 03555 HLH 39048 a

1Retailers' Occupation Tax Act and the Service Occupation Tax
2Act, which occurred in municipalities, shall be distributed to
3each municipality based upon the sales which occurred in that
4municipality. The remainder shall be distributed to each
5county based upon the sales which occurred in the
6unincorporated area of that county.
7    Moneys transferred from the Grocery Tax Replacement Fund
8to the Local Government Tax Fund under Section 6z-130 shall be
9treated under this Section in the same manner as if they had
10been remitted with the return on which they were reported.
11    A portion of the money paid into the Local Government Tax
12Fund from the 6.25% general use tax rate on the selling price
13of tangible personal property which is purchased outside
14Illinois at retail from a retailer and which is titled or
15registered by any agency of this State's government shall be
16distributed to municipalities as provided in this paragraph.
17Each municipality shall receive the amount attributable to
18sales for which Illinois addresses for titling or registration
19purposes are given as being in such municipality. The
20remainder of the money paid into the Local Government Tax Fund
21from such sales shall be distributed to counties. Each county
22shall receive the amount attributable to sales for which
23Illinois addresses for titling or registration purposes are
24given as being located in the unincorporated area of such
25county.
26    A portion of the money paid into the Local Government Tax

 

 

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1Fund from the 6.25% general rate (and, beginning July 1, 2000
2and through December 31, 2000, the 1.25% rate on motor fuel and
3gasohol, and beginning on August 6, 2010 through August 15,
42010, the 1.25% rate on sales tax holiday items) on sales
5subject to taxation under the Retailers' Occupation Tax Act
6and the Service Occupation Tax Act, which occurred in
7municipalities, shall be distributed to each municipality,
8based upon the sales which occurred in that municipality. The
9remainder shall be distributed to each county, based upon the
10sales which occurred in the unincorporated area of such
11county.
12    For the purpose of determining allocation to the local
13government unit, a retail sale by a producer of coal or other
14mineral mined in Illinois is a sale at retail at the place
15where the coal or other mineral mined in Illinois is extracted
16from the earth. This paragraph does not apply to coal or other
17mineral when it is delivered or shipped by the seller to the
18purchaser at a point outside Illinois so that the sale is
19exempt under the United States Constitution as a sale in
20interstate or foreign commerce.
21    Whenever the Department determines that a refund of money
22paid into the Local Government Tax Fund should be made to a
23claimant instead of issuing a credit memorandum, the
24Department shall notify the State Comptroller, who shall cause
25the order to be drawn for the amount specified, and to the
26person named, in such notification from the Department. Such

 

 

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1refund shall be paid by the State Treasurer out of the Local
2Government Tax Fund.
3    As soon as possible after the first day of each month,
4beginning January 1, 2011, upon certification of the
5Department of Revenue, the Comptroller shall order
6transferred, and the Treasurer shall transfer, to the STAR
7Bonds Revenue Fund the local sales tax increment, as defined
8in the Innovation Development and Economy Act, collected
9during the second preceding calendar month for sales within a
10STAR bond district and deposited into the Local Government Tax
11Fund, less 3% of that amount, which shall be transferred into
12the Tax Compliance and Administration Fund and shall be used
13by the Department, subject to appropriation, to cover the
14costs of the Department in administering the Innovation
15Development and Economy Act.
16    After the monthly transfer to the STAR Bonds Revenue Fund,
17on or before the 25th day of each calendar month, the
18Department shall prepare and certify to the Comptroller the
19disbursement of stated sums of money to named municipalities
20and counties, the municipalities and counties to be those
21entitled to distribution of taxes or penalties paid to the
22Department during the second preceding calendar month. The
23amount to be paid to each municipality or county shall be the
24amount (not including credit memoranda) collected during the
25second preceding calendar month by the Department and paid
26into the Local Government Tax Fund, plus an amount the

 

 

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1Department determines is necessary to offset any amounts which
2were erroneously paid to a different taxing body, and not
3including an amount equal to the amount of refunds made during
4the second preceding calendar month by the Department, and not
5including any amount which the Department determines is
6necessary to offset any amounts which are payable to a
7different taxing body but were erroneously paid to the
8municipality or county, and not including any amounts that are
9transferred to the STAR Bonds Revenue Fund. Within 10 days
10after receipt, by the Comptroller, of the disbursement
11certification to the municipalities and counties, provided for
12in this Section to be given to the Comptroller by the
13Department, the Comptroller shall cause the orders to be drawn
14for the respective amounts in accordance with the directions
15contained in such certification.
16    When certifying the amount of monthly disbursement to a
17municipality or county under this Section, the Department
18shall increase or decrease that amount by an amount necessary
19to offset any misallocation of previous disbursements. The
20offset amount shall be the amount erroneously disbursed within
21the 6 months preceding the time a misallocation is discovered.
22    The provisions directing the distributions from the
23special fund in the State Treasury provided for in this
24Section shall constitute an irrevocable and continuing
25appropriation of all amounts as provided herein. The State
26Treasurer and State Comptroller are hereby authorized to make

 

 

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1distributions as provided in this Section.
2    In construing any development, redevelopment, annexation,
3preannexation or other lawful agreement in effect prior to
4September 1, 1990, which describes or refers to receipts from
5a county or municipal retailers' occupation tax, use tax or
6service occupation tax which now cannot be imposed, such
7description or reference shall be deemed to include the
8replacement revenue for such abolished taxes, distributed from
9the Local Government Tax Fund.
10    As soon as possible after the effective date of this
11amendatory Act of the 98th General Assembly, the State
12Comptroller shall order and the State Treasurer shall transfer
13$6,600,000 from the Local Government Tax Fund to the Illinois
14State Medical Disciplinary Fund.
15(Source: P.A. 100-1171, eff. 1-4-19.)
 
16    (30 ILCS 105/6z-130 new)
17    Sec. 6z-130. Grocery Tax Replacement Fund.
18    (a) The Grocery Tax Replacement Fund is hereby created as
19a special fund in the State Treasury.
20    (b) On the effective date of this amendatory Act of the
21102nd General Assembly, or as soon thereafter as practical,
22but no later than June 30, 2022, the State Comptroller shall
23direct and the State Treasurer shall transfer the sum of
24$325,000,000 from the General Revenue Fund to the Grocery Tax
25Replacement Fund.

 

 

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1    (c) On July 1, 2022, or as soon thereafter as practical,
2the State Comptroller shall direct and the State Treasurer
3shall transfer the sum of $75,000,000 from the General Revenue
4Fund to the Grocery Tax Replacement Fund.
5    (d) In addition to any other transfers that may be
6provided for by law, beginning on the effective date of this
7amendatory Act of the 102nd General Assembly and until
8November 30, 2023, the Director may certify additional
9transfer amounts needed beyond the amounts specified in
10subsections (b) and (c) to cover any additional amounts needed
11to equal the net revenue that, but for the reduction of the
12rate to 0% in the Use Tax Act, the Service Use Tax Act, the
13Service Occupation Tax Act, and the Retailers' Occupation Tax
14Act under this amendatory Act of the 102nd General Assembly,
15would have been realized if the items that are subject to the
16rate reduction had been taxed at the 1% rate during the period
17of the reduction. The State Comptroller shall direct and the
18State Treasurer shall transfer the amounts certified by the
19Director from the General Revenue Fund to the Grocery Tax
20Replacement Fund.
21    (e) In addition to any other transfers that may be
22provided for by law, beginning on July 1, 2022 and until
23December 1, 2023, at the direction of the Department of
24Revenue, the State Comptroller shall direct and the State
25Treasurer shall transfer from the Grocery Tax Replacement Fund
26to the State and Local Sales Tax Reform Fund any amounts needed

 

 

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1to equal the net revenue that, but for the reduction of the
2rate to 0% in the Use Tax Act and Service Use Tax Act under
3this amendatory Act of the 102nd General Assembly, would have
4been deposited into the State and Local Sales Tax Reform Fund
5if the items that are subject to the rate reduction had been
6taxed at the 1% rate during the period of the reduction.
7    (f) In addition to any other transfers that may be
8provided for by law, beginning on July 1, 2022 and until
9December 1, 2023, at the direction of the Department of
10Revenue, the State Comptroller shall direct and the State
11Treasurer shall transfer from the Grocery Tax Replacement Fund
12to the Local Government Tax Fund any amounts needed to equal
13the net revenue that, but for the reduction of the rate to 0%
14in the Service Occupation Tax Act and the Retailers'
15Occupation Tax Act under this amendatory Act of the 102nd
16General Assembly, would have been deposited into the Local
17Government Tax Fund if the items that are subject to the rate
18reduction had been taxed at the 1% rate during the period of
19the reduction.
20    (g) The State Comptroller shall direct and the State
21Treasurer shall transfer the remaining balance in the Grocery
22Tax Replacement Fund to the General Revenue Fund on December
231, 2023, or as soon thereafter as practical. Upon completion
24of the transfer, the Grocery Tax Replacement Fund is
25dissolved.
26    (h) This Section is repealed on January 1, 2024.
 

 

 

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1    Section 60-15. The Use Tax Act is amended by changing
2Sections 3-10, 3a, and 9 as follows:
 
3    (35 ILCS 105/3-10)
4    Sec. 3-10. Rate of tax. Unless otherwise provided in this
5Section, the tax imposed by this Act is at the rate of 6.25% of
6either the selling price or the fair market value, if any, of
7the tangible personal property. In all cases where property
8functionally used or consumed is the same as the property that
9was purchased at retail, then the tax is imposed on the selling
10price of the property. In all cases where property
11functionally used or consumed is a by-product or waste product
12that has been refined, manufactured, or produced from property
13purchased at retail, then the tax is imposed on the lower of
14the fair market value, if any, of the specific property so used
15in this State or on the selling price of the property purchased
16at retail. For purposes of this Section "fair market value"
17means the price at which property would change hands between a
18willing buyer and a willing seller, neither being under any
19compulsion to buy or sell and both having reasonable knowledge
20of the relevant facts. The fair market value shall be
21established by Illinois sales by the taxpayer of the same
22property as that functionally used or consumed, or if there
23are no such sales by the taxpayer, then comparable sales or
24purchases of property of like kind and character in Illinois.

 

 

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1    Beginning on July 1, 2000 and through December 31, 2000,
2with respect to motor fuel, as defined in Section 1.1 of the
3Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
4the Use Tax Act, the tax is imposed at the rate of 1.25%.
5    Beginning on August 6, 2010 through August 15, 2010, with
6respect to sales tax holiday items as defined in Section 3-6 of
7this Act, the tax is imposed at the rate of 1.25%.
8    With respect to gasohol, the tax imposed by this Act
9applies to (i) 70% of the proceeds of sales made on or after
10January 1, 1990, and before July 1, 2003, (ii) 80% of the
11proceeds of sales made on or after July 1, 2003 and on or
12before July 1, 2017, and (iii) 100% of the proceeds of sales
13made thereafter. If, at any time, however, the tax under this
14Act on sales of gasohol is imposed at the rate of 1.25%, then
15the tax imposed by this Act applies to 100% of the proceeds of
16sales of gasohol made during that time.
17    With respect to majority blended ethanol fuel, the tax
18imposed by this Act does not apply to the proceeds of sales
19made on or after July 1, 2003 and on or before December 31,
202023 but applies to 100% of the proceeds of sales made
21thereafter.
22    With respect to biodiesel blends with no less than 1% and
23no more than 10% biodiesel, the tax imposed by this Act applies
24to (i) 80% of the proceeds of sales made on or after July 1,
252003 and on or before December 31, 2018 and (ii) 100% of the
26proceeds of sales made thereafter. If, at any time, however,

 

 

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1the tax under this Act on sales of biodiesel blends with no
2less than 1% and no more than 10% biodiesel is imposed at the
3rate of 1.25%, then the tax imposed by this Act applies to 100%
4of the proceeds of sales of biodiesel blends with no less than
51% and no more than 10% biodiesel made during that time.
6    With respect to 100% biodiesel and biodiesel blends with
7more than 10% but no more than 99% biodiesel, the tax imposed
8by this Act does not apply to the proceeds of sales made on or
9after July 1, 2003 and on or before December 31, 2023 but
10applies to 100% of the proceeds of sales made thereafter.
11    Until July 1, 2022 and beginning again on July 1, 2023,
12with With respect to food for human consumption that is to be
13consumed off the premises where it is sold (other than
14alcoholic beverages, food consisting of or infused with adult
15use cannabis, soft drinks, and food that has been prepared for
16immediate consumption), the tax is imposed at the rate of 1%.
17Beginning on July 1, 2022 and until July 1, 2023, with respect
18to food for human consumption that is to be consumed off the
19premises where it is sold (other than alcoholic beverages,
20food consisting of or infused with adult use cannabis, soft
21drinks, and food that has been prepared for immediate
22consumption), the tax is imposed at the rate of 0%.
23    With respect to and prescription and nonprescription
24medicines, drugs, medical appliances, products classified as
25Class III medical devices by the United States Food and Drug
26Administration that are used for cancer treatment pursuant to

 

 

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

 

 

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

 

 

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

 

 

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1(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
2102-4, eff. 4-27-21.)
 
3    (35 ILCS 105/3a)  (from Ch. 120, par. 439.3a)
4    Sec. 3a. The tax imposed by the Act shall when collected be
5stated as a distinct item separate and apart from the selling
6price of the tangible personal property. However, where it is
7not possible to state the sales tax separately in situations
8such as sales from vending machines or sales of liquor by the
9drink the Department may by rule exempt such sales from this
10requirement so long as purchasers are notified by a sign that
11the tax is included in the selling price.
12    In addition, retailers who sell items that would have been
13taxed at the 1% rate but for the 0% rate imposed under this
14amendatory Act of the 102nd General Assembly shall, to the
15extent feasible, include the following statement on any cash
16register tape, receipt, invoice, or sales ticket issued to
17customers: "From July 1, 2022 through July 1, 2023, the State
18of Illinois sales tax on groceries is 0%.". If it is not
19feasible for the retailer to include the statement on any cash
20register tape, receipt, invoice, or sales ticket issued to
21customers, then the retailer shall post the statement on a
22sign that is clearly visible to customers. The sign shall be no
23smaller than 4 inches by 8 inches.
24(Source: P.A. 84-229.)
 

 

 

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1    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
2    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
3and trailers that are required to be registered with an agency
4of this State, each retailer required or authorized to collect
5the tax imposed by this Act shall pay to the Department the
6amount of such tax (except as otherwise provided) at the time
7when he is required to file his return for the period during
8which such tax was collected, less a discount of 2.1% prior to
9January 1, 1990, and 1.75% on and after January 1, 1990, or $5
10per calendar year, whichever is greater, which is allowed to
11reimburse the retailer for expenses incurred in collecting the
12tax, keeping records, preparing and filing returns, remitting
13the tax and supplying data to the Department on request. The
14discount under this Section is not allowed for the 1.25%
15portion of taxes paid on aviation fuel that is subject to the
16revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1747133. When determining the discount allowed under this
18Section, retailers shall include the amount of tax that would
19have been due at the 1% rate but for the 0% rate imposed under
20this amendatory Act of the 102nd General Assembly. In the case
21of retailers who report and pay the tax on a transaction by
22transaction basis, as provided in this Section, such discount
23shall be taken with each such tax remittance instead of when
24such retailer files his periodic return. The discount allowed
25under this Section is allowed only for returns that are filed
26in the manner required by this Act. The Department may

 

 

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1disallow the discount for retailers whose certificate of
2registration is revoked at the time the return is filed, but
3only if the Department's decision to revoke the certificate of
4registration has become final. A retailer need not remit that
5part of any tax collected by him to the extent that he is
6required to remit and does remit the tax imposed by the
7Retailers' Occupation Tax Act, with respect to the sale of the
8same property.
9    Where such tangible personal property is sold under a
10conditional sales contract, or under any other form of sale
11wherein the payment of the principal sum, or a part thereof, is
12extended beyond the close of the period for which the return is
13filed, the retailer, in collecting the tax (except as to motor
14vehicles, watercraft, aircraft, and trailers that are required
15to be registered with an agency of this State), may collect for
16each tax return period, only the tax applicable to that part of
17the selling price actually received during such tax return
18period.
19    Except as provided in this Section, on or before the
20twentieth day of each calendar month, such retailer shall file
21a return for the preceding calendar month. Such return shall
22be filed on forms prescribed by the Department and shall
23furnish such information as the Department may reasonably
24require. The return shall include the gross receipts on food
25for human consumption that is to be consumed off the premises
26where it is sold (other than alcoholic beverages, food

 

 

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1consisting of or infused with adult use cannabis, soft drinks,
2and food that has been prepared for immediate consumption)
3which were received during the preceding calendar month,
4quarter, or year, as appropriate, and upon which tax would
5have been due but for the 0% rate imposed under this amendatory
6Act of the 102nd General Assembly. The return shall also
7include the amount of tax that would have been due on food for
8human consumption that is to be consumed off the premises
9where it is sold (other than alcoholic beverages, food
10consisting of or infused with adult use cannabis, soft drinks,
11and food that has been prepared for immediate consumption) but
12for the 0% rate imposed under this amendatory Act of the 102nd
13General Assembly.
14    On and after January 1, 2018, except for returns for motor
15vehicles, watercraft, aircraft, and trailers that are required
16to be registered with an agency of this State, with respect to
17retailers whose annual gross receipts average $20,000 or more,
18all returns required to be filed pursuant to this Act shall be
19filed electronically. Retailers who demonstrate that they do
20not have access to the Internet or demonstrate hardship in
21filing electronically may petition the Department to waive the
22electronic filing requirement.
23    The Department may require returns to be filed on a
24quarterly basis. If so required, a return for each calendar
25quarter shall be filed on or before the twentieth day of the
26calendar month following the end of such calendar quarter. The

 

 

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1taxpayer shall also file a return with the Department for each
2of the first two months of each calendar quarter, on or before
3the twentieth day of the following calendar month, stating:
4        1. The name of the seller;
5        2. The address of the principal place of business from
6    which he engages in the business of selling tangible
7    personal property at retail in this State;
8        3. The total amount of taxable receipts received by
9    him during the preceding calendar month from sales of
10    tangible personal property by him during such preceding
11    calendar month, including receipts from charge and time
12    sales, but less all deductions allowed by law;
13        4. The amount of credit provided in Section 2d of this
14    Act;
15        5. The amount of tax due;
16        5-5. The signature of the taxpayer; and
17        6. Such other reasonable information as the Department
18    may require.
19    Each retailer required or authorized to collect the tax
20imposed by this Act on aviation fuel sold at retail in this
21State during the preceding calendar month shall, instead of
22reporting and paying tax on aviation fuel as otherwise
23required by this Section, report and pay such tax on a separate
24aviation fuel tax return. The requirements related to the
25return shall be as otherwise provided in this Section.
26Notwithstanding any other provisions of this Act to the

 

 

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1contrary, retailers collecting tax on aviation fuel shall file
2all aviation fuel tax returns and shall make all aviation fuel
3tax payments by electronic means in the manner and form
4required by the Department. For purposes of this Section,
5"aviation fuel" means jet fuel and aviation gasoline.
6    If a taxpayer fails to sign a return within 30 days after
7the proper notice and demand for signature by the Department,
8the return shall be considered valid and any amount shown to be
9due on the return shall be deemed assessed.
10    Notwithstanding any other provision of this Act to the
11contrary, retailers subject to tax on cannabis shall file all
12cannabis tax returns and shall make all cannabis tax payments
13by electronic means in the manner and form required by the
14Department.
15    Beginning October 1, 1993, a taxpayer who has an average
16monthly tax liability of $150,000 or more shall make all
17payments required by rules of the Department by electronic
18funds transfer. Beginning October 1, 1994, a taxpayer who has
19an average monthly tax liability of $100,000 or more shall
20make all payments required by rules of the Department by
21electronic funds transfer. Beginning October 1, 1995, a
22taxpayer who has an average monthly tax liability of $50,000
23or more shall make all payments required by rules of the
24Department by electronic funds transfer. Beginning October 1,
252000, a taxpayer who has an annual tax liability of $200,000 or
26more shall make all payments required by rules of the

 

 

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

 

 

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1effectuate a program of electronic funds transfer and the
2requirements of this Section.
3    Before October 1, 2000, if the taxpayer's average monthly
4tax liability to the Department under this Act, the Retailers'
5Occupation Tax Act, the Service Occupation Tax Act, the
6Service Use Tax Act was $10,000 or more during the preceding 4
7complete calendar quarters, he shall file a return with the
8Department each month by the 20th day of the month next
9following the month during which such tax liability is
10incurred and shall make payments to the Department on or
11before the 7th, 15th, 22nd and last day of the month during
12which such liability is incurred. On and after October 1,
132000, if the taxpayer's average monthly tax liability to the
14Department under this Act, the Retailers' Occupation Tax Act,
15the Service Occupation Tax Act, and the Service Use Tax Act was
16$20,000 or more during the preceding 4 complete calendar
17quarters, he shall file a return with the Department each
18month by the 20th day of the month next following the month
19during which such tax liability is incurred and shall make
20payment to the Department on or before the 7th, 15th, 22nd and
21last day of the month during which such liability is incurred.
22If the month during which such tax liability is incurred began
23prior to January 1, 1985, each payment shall be in an amount
24equal to 1/4 of the taxpayer's actual liability for the month
25or an amount set by the Department not to exceed 1/4 of the
26average monthly liability of the taxpayer to the Department

 

 

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1for the preceding 4 complete calendar quarters (excluding the
2month of highest liability and the month of lowest liability
3in such 4 quarter period). If the month during which such tax
4liability is incurred begins on or after January 1, 1985, and
5prior to January 1, 1987, each payment shall be in an amount
6equal to 22.5% of the taxpayer's actual liability for the
7month or 27.5% of the taxpayer's liability for the same
8calendar month of the preceding year. If the month during
9which such tax liability is incurred begins on or after
10January 1, 1987, and prior to January 1, 1988, each payment
11shall be in an amount equal to 22.5% of the taxpayer's actual
12liability for the month or 26.25% of the taxpayer's liability
13for the same calendar month of the preceding year. If the month
14during which such tax liability is incurred begins on or after
15January 1, 1988, and prior to January 1, 1989, or begins on or
16after January 1, 1996, each payment shall be in an amount equal
17to 22.5% of the taxpayer's actual liability for the month or
1825% of the taxpayer's liability for the same calendar month of
19the preceding year. If the month during which such tax
20liability is incurred begins on or after January 1, 1989, and
21prior to January 1, 1996, each payment shall be in an amount
22equal to 22.5% of the taxpayer's actual liability for the
23month or 25% of the taxpayer's liability for the same calendar
24month of the preceding year or 100% of the taxpayer's actual
25liability for the quarter monthly reporting period. The amount
26of such quarter monthly payments shall be credited against the

 

 

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

 

 

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1the taxpayer's business has occurred which causes the taxpayer
2to anticipate that his average monthly tax liability for the
3reasonably foreseeable future will fall below the $20,000
4threshold stated above, then such taxpayer may petition the
5Department for a change in such taxpayer's reporting status.
6The Department shall change such taxpayer's reporting status
7unless it finds that such change is seasonal in nature and not
8likely to be long term. Quarter monthly payment status shall
9be determined under this paragraph as if the rate reduction to
100% in this amendatory Act of the 102nd General Assembly on food
11for human consumption that is to be consumed off the premises
12where it is sold (other than alcoholic beverages, food
13consisting of or infused with adult use cannabis, soft drinks,
14and food that has been prepared for immediate consumption) had
15not occurred. For quarter monthly payments due under this
16paragraph on or after July 1, 2023 and through June 30, 2024,
17"25% of the taxpayer's liability for the same calendar month
18of the preceding year" shall be determined as if the rate
19reduction to 0% in this amendatory Act of the 102nd General
20Assembly had not occurred. If any such quarter monthly payment
21is not paid at the time or in the amount required by this
22Section, then the taxpayer shall be liable for penalties and
23interest on the difference between the minimum amount due and
24the amount of such quarter monthly payment actually and timely
25paid, except insofar as the taxpayer has previously made
26payments for that month to the Department in excess of the

 

 

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1minimum payments previously due as provided in this Section.
2The Department shall make reasonable rules and regulations to
3govern the quarter monthly payment amount and quarter monthly
4payment dates for taxpayers who file on other than a calendar
5monthly basis.
6    If any such payment provided for in this Section exceeds
7the taxpayer's liabilities under this Act, the Retailers'
8Occupation Tax Act, the Service Occupation Tax Act and the
9Service Use Tax Act, as shown by an original monthly return,
10the Department shall issue to the taxpayer a credit memorandum
11no later than 30 days after the date of payment, which
12memorandum may be submitted by the taxpayer to the Department
13in payment of tax liability subsequently to be remitted by the
14taxpayer to the Department or be assigned by the taxpayer to a
15similar taxpayer under this Act, the Retailers' Occupation Tax
16Act, the Service Occupation Tax Act or the Service Use Tax Act,
17in accordance with reasonable rules and regulations to be
18prescribed by the Department, except that if such excess
19payment is shown on an original monthly return and is made
20after December 31, 1986, no credit memorandum shall be issued,
21unless requested by the taxpayer. If no such request is made,
22the taxpayer may credit such excess payment against tax
23liability subsequently to be remitted by the taxpayer to the
24Department under this Act, the Retailers' Occupation Tax Act,
25the Service Occupation Tax Act or the Service Use Tax Act, in
26accordance with reasonable rules and regulations prescribed by

 

 

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

 

 

10200HB1539sam001- 200 -LRB102 03555 HLH 39048 a

1    Notwithstanding any other provision in this Act concerning
2the time within which a retailer may file his return, in the
3case of any retailer who ceases to engage in a kind of business
4which makes him responsible for filing returns under this Act,
5such retailer shall file a final return under this Act with the
6Department not more than one month after discontinuing such
7business.
8    In addition, with respect to motor vehicles, watercraft,
9aircraft, and trailers that are required to be registered with
10an agency of this State, except as otherwise provided in this
11Section, every retailer selling this kind of tangible personal
12property shall file, with the Department, upon a form to be
13prescribed and supplied by the Department, a separate return
14for each such item of tangible personal property which the
15retailer sells, except that if, in the same transaction, (i) a
16retailer of aircraft, watercraft, motor vehicles or trailers
17transfers more than one aircraft, watercraft, motor vehicle or
18trailer to another aircraft, watercraft, motor vehicle or
19trailer retailer for the purpose of resale or (ii) a retailer
20of aircraft, watercraft, motor vehicles, or trailers transfers
21more than one aircraft, watercraft, motor vehicle, or trailer
22to a purchaser for use as a qualifying rolling stock as
23provided in Section 3-55 of this Act, then that seller may
24report the transfer of all the aircraft, watercraft, motor
25vehicles or trailers involved in that transaction to the
26Department on the same uniform invoice-transaction reporting

 

 

10200HB1539sam001- 201 -LRB102 03555 HLH 39048 a

1return form. For purposes of this Section, "watercraft" means
2a Class 2, Class 3, or Class 4 watercraft as defined in Section
33-2 of the Boat Registration and Safety Act, a personal
4watercraft, or any boat equipped with an inboard motor.
5    In addition, with respect to motor vehicles, watercraft,
6aircraft, and trailers that are required to be registered with
7an agency of this State, every person who is engaged in the
8business of leasing or renting such items and who, in
9connection with such business, sells any such item to a
10retailer for the purpose of resale is, notwithstanding any
11other provision of this Section to the contrary, authorized to
12meet the return-filing requirement of this Act by reporting
13the transfer of all the aircraft, watercraft, motor vehicles,
14or trailers transferred for resale during a month to the
15Department on the same uniform invoice-transaction reporting
16return form on or before the 20th of the month following the
17month in which the transfer takes place. Notwithstanding any
18other provision of this Act to the contrary, all returns filed
19under this paragraph must be filed by electronic means in the
20manner and form as required by the Department.
21    The transaction reporting return in the case of motor
22vehicles or trailers that are required to be registered with
23an agency of this State, shall be the same document as the
24Uniform Invoice referred to in Section 5-402 of the Illinois
25Vehicle Code and must show the name and address of the seller;
26the name and address of the purchaser; the amount of the

 

 

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

 

 

10200HB1539sam001- 203 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 204 -LRB102 03555 HLH 39048 a

1whom, he must title or register the tangible personal property
2that is involved (if titling or registration is required) in
3support of such purchaser's application for an Illinois
4certificate or other evidence of title or registration to such
5tangible personal property.
6    No retailer's failure or refusal to remit tax under this
7Act precludes a user, who has paid the proper tax to the
8retailer, from obtaining his certificate of title or other
9evidence of title or registration (if titling or registration
10is required) upon satisfying the Department that such user has
11paid the proper tax (if tax is due) to the retailer. The
12Department shall adopt appropriate rules to carry out the
13mandate of this paragraph.
14    If the user who would otherwise pay tax to the retailer
15wants the transaction reporting return filed and the payment
16of tax or proof of exemption made to the Department before the
17retailer is willing to take these actions and such user has not
18paid the tax to the retailer, such user may certify to the fact
19of such delay by the retailer, and may (upon the Department
20being satisfied of the truth of such certification) transmit
21the information required by the transaction reporting return
22and the remittance for tax or proof of exemption directly to
23the Department and obtain his tax receipt or exemption
24determination, in which event the transaction reporting return
25and tax remittance (if a tax payment was required) shall be
26credited by the Department to the proper retailer's account

 

 

10200HB1539sam001- 205 -LRB102 03555 HLH 39048 a

1with the Department, but without the 2.1% or 1.75% discount
2provided for in this Section being allowed. When the user pays
3the tax directly to the Department, he shall pay the tax in the
4same amount and in the same form in which it would be remitted
5if the tax had been remitted to the Department by the retailer.
6    Where a retailer collects the tax with respect to the
7selling price of tangible personal property which he sells and
8the purchaser thereafter returns such tangible personal
9property and the retailer refunds the selling price thereof to
10the purchaser, such retailer shall also refund, to the
11purchaser, the tax so collected from the purchaser. When
12filing his return for the period in which he refunds such tax
13to the purchaser, the retailer may deduct the amount of the tax
14so refunded by him to the purchaser from any other use tax
15which such retailer may be required to pay or remit to the
16Department, as shown by such return, if the amount of the tax
17to be deducted was previously remitted to the Department by
18such retailer. If the retailer has not previously remitted the
19amount of such tax to the Department, he is entitled to no
20deduction under this Act upon refunding such tax to the
21purchaser.
22    Any retailer filing a return under this Section shall also
23include (for the purpose of paying tax thereon) the total tax
24covered by such return upon the selling price of tangible
25personal property purchased by him at retail from a retailer,
26but as to which the tax imposed by this Act was not collected

 

 

10200HB1539sam001- 206 -LRB102 03555 HLH 39048 a

1from the retailer filing such return, and such retailer shall
2remit the amount of such tax to the Department when filing such
3return.
4    If experience indicates such action to be practicable, the
5Department may prescribe and furnish a combination or joint
6return which will enable retailers, who are required to file
7returns hereunder and also under the Retailers' Occupation Tax
8Act, to furnish all the return information required by both
9Acts on the one form.
10    Where the retailer has more than one business registered
11with the Department under separate registration under this
12Act, such retailer may not file each return that is due as a
13single return covering all such registered businesses, but
14shall file separate returns for each such registered business.
15    Beginning January 1, 1990, each month the Department shall
16pay into the State and Local Sales Tax Reform Fund, a special
17fund in the State Treasury which is hereby created, the net
18revenue realized for the preceding month from the 1% tax
19imposed under this Act.
20    Beginning January 1, 1990, each month the Department shall
21pay into the County and Mass Transit District Fund 4% of the
22net revenue realized for the preceding month from the 6.25%
23general rate on the selling price of tangible personal
24property which is purchased outside Illinois at retail from a
25retailer and which is titled or registered by an agency of this
26State's government.

 

 

10200HB1539sam001- 207 -LRB102 03555 HLH 39048 a

1    Beginning January 1, 1990, each month the Department shall
2pay into the State and Local Sales Tax Reform Fund, a special
3fund in the State Treasury, 20% of the net revenue realized for
4the preceding month from the 6.25% general rate on the selling
5price of tangible personal property, other than (i) tangible
6personal property which is purchased outside Illinois at
7retail from a retailer and which is titled or registered by an
8agency of this State's government and (ii) aviation fuel sold
9on or after December 1, 2019. This exception for aviation fuel
10only applies for so long as the revenue use requirements of 49
11U.S.C. 47107(b) and 49 U.S.C. 47133 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 Fuels 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%

 

 

10200HB1539sam001- 208 -LRB102 03555 HLH 39048 a

1rate on the selling price of motor fuel and gasohol. Beginning
2September 1, 2010, each month the Department shall pay into
3the State and Local Sales Tax Reform Fund 100% of the net
4revenue realized for the preceding month from the 1.25% rate
5on the selling price of sales tax holiday items.
6    Beginning January 1, 1990, each month the Department shall
7pay into the Local Government Tax Fund 16% of the net revenue
8realized for the preceding month from the 6.25% general rate
9on the selling price of tangible personal property which is
10purchased outside Illinois at retail from a retailer and which
11is titled or registered by an agency of this State's
12government.
13    Beginning October 1, 2009, each month the Department shall
14pay into the Capital Projects Fund an amount that is equal to
15an amount estimated by the Department to represent 80% of the
16net revenue realized for the preceding month from the sale of
17candy, grooming and hygiene products, and soft drinks that had
18been taxed at a rate of 1% prior to September 1, 2009 but that
19are now taxed at 6.25%.
20    Beginning July 1, 2011, each month the Department shall
21pay into the Clean Air Act Permit Fund 80% of the net revenue
22realized for the preceding month from the 6.25% general rate
23on the selling price of sorbents used in Illinois in the
24process of sorbent injection as used to comply with the
25Environmental Protection Act or the federal Clean Air Act, but
26the total payment into the Clean Air Act Permit Fund under this

 

 

10200HB1539sam001- 209 -LRB102 03555 HLH 39048 a

1Act and the Retailers' Occupation Tax Act shall not exceed
2$2,000,000 in any fiscal year.
3    Beginning July 1, 2013, each month the Department shall
4pay into the Underground Storage Tank Fund from the proceeds
5collected under this Act, the Service Use Tax Act, the Service
6Occupation Tax Act, and the Retailers' Occupation Tax Act an
7amount equal to the average monthly deficit in the Underground
8Storage Tank Fund during the prior year, as certified annually
9by the Illinois Environmental Protection Agency, but the total
10payment into the Underground Storage Tank Fund under this Act,
11the Service Use Tax Act, the Service Occupation Tax Act, and
12the Retailers' Occupation Tax Act shall not exceed $18,000,000
13in any State fiscal year. As used in this paragraph, the
14"average monthly deficit" shall be equal to the difference
15between the average monthly claims for payment by the fund and
16the average monthly revenues deposited into the fund,
17excluding payments made pursuant to this paragraph.
18    Beginning July 1, 2015, of the remainder of the moneys
19received by the Department under this Act, the Service Use Tax
20Act, the Service Occupation Tax Act, and the Retailers'
21Occupation Tax Act, each month the Department shall deposit
22$500,000 into the State Crime Laboratory Fund.
23    Of the remainder of the moneys received by the Department
24pursuant to this Act, (a) 1.75% thereof shall be paid into the
25Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
26and after July 1, 1989, 3.8% thereof shall be paid into the

 

 

10200HB1539sam001- 210 -LRB102 03555 HLH 39048 a

1Build Illinois Fund; provided, however, that if in any fiscal
2year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
3may be, of the moneys received by the Department and required
4to be paid into the Build Illinois Fund pursuant to Section 3
5of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
6Act, Section 9 of the Service Use Tax Act, and Section 9 of the
7Service Occupation Tax Act, such Acts being hereinafter called
8the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
9may be, of moneys being hereinafter called the "Tax Act
10Amount", and (2) the amount transferred to the Build Illinois
11Fund from the State and Local Sales Tax Reform Fund shall be
12less than the Annual Specified Amount (as defined in Section 3
13of the Retailers' Occupation Tax Act), an amount equal to the
14difference shall be immediately paid into the Build Illinois
15Fund from other moneys received by the Department pursuant to
16the Tax Acts; and further provided, that if on the last
17business day of any month the sum of (1) the Tax Act Amount
18required to be deposited into the Build Illinois Bond Account
19in the Build Illinois Fund during such month and (2) the amount
20transferred during such month to the Build Illinois Fund from
21the State and Local Sales Tax Reform Fund shall have been less
22than 1/12 of the Annual Specified Amount, an amount equal to
23the difference shall be immediately paid into the Build
24Illinois Fund from other moneys received by the Department
25pursuant to the Tax Acts; and, further provided, that in no
26event shall the payments required under the preceding proviso

 

 

10200HB1539sam001- 211 -LRB102 03555 HLH 39048 a

1result in aggregate payments into the Build Illinois Fund
2pursuant to this clause (b) for any fiscal year in excess of
3the greater of (i) the Tax Act Amount or (ii) the Annual
4Specified Amount for such fiscal year; and, further provided,
5that the amounts payable into the Build Illinois Fund under
6this clause (b) shall be payable only until such time as the
7aggregate amount on deposit under each trust indenture
8securing Bonds issued and outstanding pursuant to the Build
9Illinois Bond Act is sufficient, taking into account any
10future investment income, to fully provide, in accordance with
11such indenture, for the defeasance of or the payment of the
12principal of, premium, if any, and interest on the Bonds
13secured by such indenture and on any Bonds expected to be
14issued thereafter and all fees and costs payable with respect
15thereto, all as certified by the Director of the Bureau of the
16Budget (now Governor's Office of Management and Budget). If on
17the last business day of any month in which Bonds are
18outstanding pursuant to the Build Illinois Bond Act, the
19aggregate of the moneys deposited in the Build Illinois Bond
20Account in the Build Illinois Fund in such month shall be less
21than the amount required to be transferred in such month from
22the Build Illinois Bond Account to the Build Illinois Bond
23Retirement and Interest Fund pursuant to Section 13 of the
24Build Illinois Bond Act, an amount equal to such deficiency
25shall be immediately paid from other moneys received by the
26Department pursuant to the Tax Acts to the Build Illinois

 

 

10200HB1539sam001- 212 -LRB102 03555 HLH 39048 a

1Fund; provided, however, that any amounts paid to the Build
2Illinois Fund in any fiscal year pursuant to this sentence
3shall be deemed to constitute payments pursuant to clause (b)
4of the preceding sentence and shall reduce the amount
5otherwise payable for such fiscal year pursuant to clause (b)
6of the preceding sentence. The moneys received by the
7Department pursuant to this Act and required to be deposited
8into the Build Illinois Fund are subject to the pledge, claim
9and charge set forth in Section 12 of the Build Illinois Bond
10Act.
11    Subject to payment of amounts into the Build Illinois Fund
12as provided in the preceding paragraph or in any amendment
13thereto hereafter enacted, the following specified monthly
14installment of the amount requested in the certificate of the
15Chairman of the Metropolitan Pier and Exposition Authority
16provided under Section 8.25f of the State Finance Act, but not
17in excess of the sums designated as "Total Deposit", shall be
18deposited in the aggregate from collections under Section 9 of
19the Use Tax Act, Section 9 of the Service Use Tax Act, Section
209 of the Service Occupation Tax Act, and Section 3 of the
21Retailers' Occupation Tax Act into the McCormick Place
22Expansion Project Fund in the specified fiscal years.
23Fiscal YearTotal Deposit
241993         $0
251994 53,000,000
261995 58,000,000

 

 

10200HB1539sam001- 213 -LRB102 03555 HLH 39048 a

11996 61,000,000
21997 64,000,000
31998 68,000,000
41999 71,000,000
52000 75,000,000
62001 80,000,000
72002 93,000,000
82003 99,000,000
92004103,000,000
102005108,000,000
112006113,000,000
122007119,000,000
132008126,000,000
142009132,000,000
152010139,000,000
162011146,000,000
172012153,000,000
182013161,000,000
192014170,000,000
202015179,000,000
212016189,000,000
222017199,000,000
232018210,000,000
242019221,000,000
252020233,000,000
262021300,000,000

 

 

10200HB1539sam001- 214 -LRB102 03555 HLH 39048 a

12022300,000,000
22023300,000,000
32024 300,000,000
42025 300,000,000
52026 300,000,000
62027 375,000,000
72028 375,000,000
82029 375,000,000
92030 375,000,000
102031 375,000,000
112032 375,000,000
122033 375,000,000
132034375,000,000
142035375,000,000
152036450,000,000
16and
17each fiscal year
18thereafter that bonds
19are outstanding under
20Section 13.2 of the
21Metropolitan Pier and
22Exposition Authority Act,
23but not after fiscal year 2060.
24    Beginning July 20, 1993 and in each month of each fiscal
25year thereafter, one-eighth of the amount requested in the
26certificate of the Chairman of the Metropolitan Pier and

 

 

10200HB1539sam001- 215 -LRB102 03555 HLH 39048 a

1Exposition Authority for that fiscal year, less the amount
2deposited into the McCormick Place Expansion Project Fund by
3the State Treasurer in the respective month under subsection
4(g) of Section 13 of the Metropolitan Pier and Exposition
5Authority Act, plus cumulative deficiencies in the deposits
6required under this Section for previous months and years,
7shall be deposited into the McCormick Place Expansion Project
8Fund, until the full amount requested for the fiscal year, but
9not in excess of the amount specified above as "Total
10Deposit", has been deposited.
11    Subject to payment of amounts into the Capital Projects
12Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
13and the McCormick Place Expansion Project Fund pursuant to the
14preceding paragraphs or in any amendments thereto hereafter
15enacted, for aviation fuel sold on or after December 1, 2019,
16the Department shall each month deposit into the Aviation Fuel
17Sales Tax Refund Fund an amount estimated by the Department to
18be required for refunds of the 80% portion of the tax on
19aviation fuel under this Act. The Department shall only
20deposit moneys into the Aviation Fuel Sales Tax Refund Fund
21under this paragraph for so long as the revenue use
22requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
23binding on the State.
24    Subject to payment of amounts into the Build Illinois Fund
25and the McCormick Place Expansion Project Fund pursuant to the
26preceding paragraphs or in any amendments thereto hereafter

 

 

10200HB1539sam001- 216 -LRB102 03555 HLH 39048 a

1enacted, beginning July 1, 1993 and ending on September 30,
22013, the Department shall each month pay into the Illinois
3Tax Increment Fund 0.27% of 80% of the net revenue realized for
4the preceding month from the 6.25% general rate on the selling
5price of tangible personal property.
6    Subject to payment of amounts into the Build Illinois Fund
7and the McCormick Place Expansion Project Fund pursuant to the
8preceding paragraphs or in any amendments thereto hereafter
9enacted, beginning with the receipt of the first report of
10taxes paid by an eligible business and continuing for a
1125-year period, the Department shall each month pay into the
12Energy Infrastructure Fund 80% of the net revenue realized
13from the 6.25% general rate on the selling price of
14Illinois-mined coal that was sold to an eligible business. For
15purposes of this paragraph, the term "eligible business" means
16a new electric generating facility certified pursuant to
17Section 605-332 of the Department of Commerce and Economic
18Opportunity Law of the Civil Administrative Code of Illinois.
19    Subject to payment of amounts into the Build Illinois
20Fund, the McCormick Place Expansion Project Fund, the Illinois
21Tax Increment Fund, and the Energy Infrastructure Fund
22pursuant to the preceding paragraphs or in any amendments to
23this Section hereafter enacted, beginning on the first day of
24the first calendar month to occur on or after August 26, 2014
25(the effective date of Public Act 98-1098), each month, from
26the collections made under Section 9 of the Use Tax Act,

 

 

10200HB1539sam001- 217 -LRB102 03555 HLH 39048 a

1Section 9 of the Service Use Tax Act, Section 9 of the Service
2Occupation Tax Act, and Section 3 of the Retailers' Occupation
3Tax Act, the Department shall pay into the Tax Compliance and
4Administration Fund, to be used, subject to appropriation, to
5fund additional auditors and compliance personnel at the
6Department of Revenue, an amount equal to 1/12 of 5% of 80% of
7the cash receipts collected during the preceding fiscal year
8by the Audit Bureau of the Department under the Use Tax Act,
9the Service Use Tax Act, the Service Occupation Tax Act, the
10Retailers' Occupation Tax Act, and associated local occupation
11and use taxes administered by the Department.
12    Subject to payments of amounts into the Build Illinois
13Fund, the McCormick Place Expansion Project Fund, the Illinois
14Tax Increment Fund, the Energy Infrastructure Fund, and the
15Tax Compliance and Administration Fund as provided in this
16Section, beginning on July 1, 2018 the Department shall pay
17each month into the Downstate Public Transportation Fund the
18moneys required to be so paid under Section 2-3 of the
19Downstate Public Transportation Act.
20    Subject to successful execution and delivery of a
21public-private agreement between the public agency and private
22entity and completion of the civic build, beginning on July 1,
232023, of the remainder of the moneys received by the
24Department under the Use Tax Act, the Service Use Tax Act, the
25Service Occupation Tax Act, and this Act, the Department shall
26deposit the following specified deposits in the aggregate from

 

 

10200HB1539sam001- 218 -LRB102 03555 HLH 39048 a

1collections under the Use Tax Act, the Service Use Tax Act, the
2Service Occupation Tax Act, and the Retailers' Occupation Tax
3Act, as required under Section 8.25g of the State Finance Act
4for distribution consistent with the Public-Private
5Partnership for Civic and Transit Infrastructure Project Act.
6The moneys received by the Department pursuant to this Act and
7required to be deposited into the Civic and Transit
8Infrastructure Fund are subject to the pledge, claim, and
9charge set forth in Section 25-55 of the Public-Private
10Partnership for Civic and Transit Infrastructure Project Act.
11As used in this paragraph, "civic build", "private entity",
12"public-private agreement", and "public agency" have the
13meanings provided in Section 25-10 of the Public-Private
14Partnership for Civic and Transit Infrastructure Project Act.
15        Fiscal Year............................Total Deposit
16        2024....................................$200,000,000
17        2025....................................$206,000,000
18        2026....................................$212,200,000
19        2027....................................$218,500,000
20        2028....................................$225,100,000
21        2029....................................$288,700,000
22        2030....................................$298,900,000
23        2031....................................$309,300,000
24        2032....................................$320,100,000
25        2033....................................$331,200,000
26        2034....................................$341,200,000

 

 

10200HB1539sam001- 219 -LRB102 03555 HLH 39048 a

1        2035....................................$351,400,000
2        2036....................................$361,900,000
3        2037....................................$372,800,000
4        2038....................................$384,000,000
5        2039....................................$395,500,000
6        2040....................................$407,400,000
7        2041....................................$419,600,000
8        2042....................................$432,200,000
9        2043....................................$445,100,000
10    Beginning July 1, 2021 and until July 1, 2022, subject to
11the payment of amounts into the State and Local Sales Tax
12Reform Fund, the Build Illinois Fund, the McCormick Place
13Expansion Project Fund, the Illinois Tax Increment Fund, the
14Energy Infrastructure Fund, and the Tax Compliance and
15Administration Fund as provided in this Section, the
16Department shall pay each month into the Road Fund the amount
17estimated to represent 16% of the net revenue realized from
18the taxes imposed on motor fuel and gasohol. Beginning July 1,
192022 and until July 1, 2023, subject to the payment of amounts
20into the State and Local Sales Tax Reform Fund, the Build
21Illinois Fund, the McCormick Place Expansion Project Fund, the
22Illinois Tax Increment Fund, the Energy Infrastructure Fund,
23and the Tax Compliance and Administration Fund as provided in
24this Section, the Department shall pay each month into the
25Road Fund the amount estimated to represent 32% of the net
26revenue realized from the taxes imposed on motor fuel and

 

 

10200HB1539sam001- 220 -LRB102 03555 HLH 39048 a

1gasohol. Beginning July 1, 2023 and until July 1, 2024,
2subject to the payment of amounts into the State and Local
3Sales Tax Reform Fund, the Build Illinois Fund, the McCormick
4Place Expansion Project Fund, the Illinois Tax Increment Fund,
5the Energy Infrastructure Fund, and the Tax Compliance and
6Administration Fund as provided in this Section, the
7Department shall pay each month into the Road Fund the amount
8estimated to represent 48% of the net revenue realized from
9the taxes imposed on motor fuel and gasohol. Beginning July 1,
102024 and until July 1, 2025, subject to the payment of amounts
11into the State and Local Sales Tax Reform Fund, the Build
12Illinois Fund, the McCormick Place Expansion Project Fund, the
13Illinois Tax Increment Fund, the Energy Infrastructure Fund,
14and the Tax Compliance and Administration Fund as provided in
15this Section, the Department shall pay each month into the
16Road Fund the amount estimated to represent 64% of the net
17revenue realized from the taxes imposed on motor fuel and
18gasohol. Beginning on July 1, 2025, subject to the payment of
19amounts into the State and Local Sales Tax Reform Fund, the
20Build Illinois Fund, the McCormick Place Expansion Project
21Fund, the Illinois Tax Increment Fund, the Energy
22Infrastructure Fund, and the Tax Compliance and Administration
23Fund as provided in this Section, the Department shall pay
24each month into the Road Fund the amount estimated to
25represent 80% of the net revenue realized from the taxes
26imposed on motor fuel and gasohol. As used in this paragraph

 

 

10200HB1539sam001- 221 -LRB102 03555 HLH 39048 a

1"motor fuel" has the meaning given to that term in Section 1.1
2of the Motor Fuel Tax Law Act, and "gasohol" has the meaning
3given to that term in Section 3-40 of this Act.
4    Of the remainder of the moneys received by the Department
5pursuant to this Act, 75% thereof shall be paid into the State
6Treasury and 25% shall be reserved in a special account and
7used only for the transfer to the Common School Fund as part of
8the monthly transfer from the General Revenue Fund in
9accordance with Section 8a of the State Finance Act.
10    As soon as possible after the first day of each month, upon
11certification of the Department of Revenue, the Comptroller
12shall order transferred and the Treasurer shall transfer from
13the General Revenue Fund to the Motor Fuel Tax Fund an amount
14equal to 1.7% of 80% of the net revenue realized under this Act
15for the second preceding month. Beginning April 1, 2000, this
16transfer is no longer required and shall not be made.
17    Net revenue realized for a month shall be the revenue
18collected by the State pursuant to this Act, less the amount
19paid out during that month as refunds to taxpayers for
20overpayment of liability.
21    For greater simplicity of administration, manufacturers,
22importers and wholesalers whose products are sold at retail in
23Illinois by numerous retailers, and who wish to do so, may
24assume the responsibility for accounting and paying to the
25Department all tax accruing under this Act with respect to
26such sales, if the retailers who are affected do not make

 

 

10200HB1539sam001- 222 -LRB102 03555 HLH 39048 a

1written objection to the Department to this arrangement.
2(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
3100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
415, Section 15-10, eff. 6-5-19; 101-10, Article 25, Section
525-105, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
66-28-19; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
 
7    Section 60-20. The Service Use Tax Act is amended by
8changing Sections 3-10 and 9 as follows:
 
9    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
10    Sec. 3-10. Rate of tax. Unless otherwise provided in this
11Section, the tax imposed by this Act is at the rate of 6.25% of
12the selling price of tangible personal property transferred as
13an incident to the sale of service, but, for the purpose of
14computing this tax, in no event shall the selling price be less
15than the cost price of the property to the serviceman.
16    Beginning on July 1, 2000 and through December 31, 2000,
17with respect to motor fuel, as defined in Section 1.1 of the
18Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
19the Use Tax Act, the tax is imposed at the rate of 1.25%.
20    With respect to gasohol, as defined in the Use Tax Act, the
21tax imposed by this Act applies to (i) 70% of the selling price
22of property transferred as an incident to the sale of service
23on or after January 1, 1990, and before July 1, 2003, (ii) 80%
24of the selling price of property transferred as an incident to

 

 

10200HB1539sam001- 223 -LRB102 03555 HLH 39048 a

1the sale of service on or after July 1, 2003 and on or before
2July 1, 2017, and (iii) 100% of the selling price thereafter.
3If, at any time, however, the tax under this Act on sales of
4gasohol, as defined in the Use Tax Act, is imposed at the rate
5of 1.25%, then the tax imposed by this Act applies to 100% of
6the proceeds of sales of gasohol 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 selling price of property transferred as an incident to
10the sale of service on or after July 1, 2003 and on or before
11December 31, 2023 but applies to 100% of the selling price
12thereafter.
13    With respect to biodiesel blends, as defined in the Use
14Tax Act, with no less than 1% and no more than 10% biodiesel,
15the tax imposed by this Act applies to (i) 80% of the selling
16price of property transferred as an incident to the sale of
17service on or after July 1, 2003 and on or before December 31,
182018 and (ii) 100% of the proceeds of the selling price
19thereafter. If, at any time, however, the tax under this Act on
20sales of biodiesel blends, as defined in the Use Tax Act, with
21no less than 1% and no more than 10% biodiesel is imposed at
22the rate of 1.25%, then the tax imposed by this Act applies to
23100% of the proceeds of sales of biodiesel blends with no less
24than 1% and no more than 10% biodiesel made during that time.
25    With respect to 100% biodiesel, as defined in the Use Tax
26Act, and biodiesel blends, as defined in the Use Tax Act, with

 

 

10200HB1539sam001- 224 -LRB102 03555 HLH 39048 a

1more than 10% but no more than 99% biodiesel, the tax imposed
2by this Act does not apply to the proceeds of the selling price
3of property transferred as an incident to the sale of service
4on or after July 1, 2003 and on or before December 31, 2023 but
5applies to 100% of the selling price thereafter.
6    At the election of any registered serviceman made for each
7fiscal year, sales of service in which the aggregate annual
8cost price of tangible personal property transferred as an
9incident to the sales of service is less than 35%, or 75% in
10the case of servicemen transferring prescription drugs or
11servicemen engaged in graphic arts production, of the
12aggregate annual total gross receipts from all sales of
13service, the tax imposed by this Act shall be based on the
14serviceman's cost price of the tangible personal property
15transferred as an incident to the sale of those services.
16    Until July 1, 2022 and beginning again on July 1, 2023, the
17The tax shall be imposed at the rate of 1% on food prepared for
18immediate consumption and transferred incident to a sale of
19service subject to this Act or the Service Occupation Tax Act
20by an entity licensed under the Hospital Licensing Act, the
21Nursing Home Care Act, the Assisted Living and Shared Housing
22Act, the ID/DD Community Care Act, the MC/DD Act, the
23Specialized Mental Health Rehabilitation Act of 2013, or the
24Child Care Act of 1969, or an entity that holds a permit issued
25pursuant to the Life Care Facilities Act. Until July 1, 2022
26and beginning again on July 1, 2023, the The tax shall also be

 

 

10200HB1539sam001- 225 -LRB102 03555 HLH 39048 a

1imposed at the rate of 1% on food for human consumption that is
2to be consumed off the premises where it is sold (other than
3alcoholic beverages, food consisting of or infused with adult
4use cannabis, soft drinks, and food that has been prepared for
5immediate consumption and is not otherwise included in this
6paragraph).
7    Beginning on July 1, 2022 and until July 1, 2023, the tax
8shall be imposed at the rate of 0% on food prepared for
9immediate consumption and transferred incident to a sale of
10service subject to this Act or the Service Occupation Tax Act
11by an entity licensed under the Hospital Licensing Act, the
12Nursing Home Care Act, the Assisted Living and Shared Housing
13Act, the ID/DD Community Care Act, the MC/DD Act, the
14Specialized Mental Health Rehabilitation Act of 2013, or the
15Child Care Act of 1969, or an entity that holds a permit issued
16pursuant to the Life Care Facilities Act. Beginning on July 1,
172022 and until July 1, 2023, the tax shall also be imposed at
18the rate of 0% on food for human consumption that is to be
19consumed off the premises where it is sold (other than
20alcoholic beverages, food consisting of or infused with adult
21use cannabis, soft drinks, and food that has been prepared for
22immediate consumption and is not otherwise included in this
23paragraph).
24    The tax shall also be imposed at the rate of 1% on and
25prescription and nonprescription medicines, drugs, medical
26appliances, products classified as Class III medical devices

 

 

10200HB1539sam001- 226 -LRB102 03555 HLH 39048 a

1by the United States Food and Drug Administration that are
2used for cancer treatment pursuant to a prescription, as well
3as any accessories 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. For the purposes of this Section, until September
81, 2009: the term "soft drinks" means any complete, finished,
9ready-to-use, non-alcoholic drink, whether carbonated or not,
10including but not limited to soda water, cola, fruit juice,
11vegetable juice, carbonated water, and all other preparations
12commonly known as soft drinks of whatever kind or description
13that are contained in any closed or sealed bottle, can,
14carton, or container, regardless of size; but "soft drinks"
15does not include coffee, tea, non-carbonated water, infant
16formula, milk or milk products as defined in the Grade A
17Pasteurized Milk and Milk Products Act, or drinks containing
1850% or more natural fruit or vegetable juice.
19    Notwithstanding any other provisions of this Act,
20beginning September 1, 2009, "soft drinks" means non-alcoholic
21beverages that contain natural or artificial sweeteners. "Soft
22drinks" do not include beverages that contain milk or milk
23products, soy, rice or similar milk substitutes, or greater
24than 50% of vegetable or fruit juice by volume.
25    Until August 1, 2009, and notwithstanding any other
26provisions of this Act, "food for human consumption that is to

 

 

10200HB1539sam001- 227 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 228 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 229 -LRB102 03555 HLH 39048 a

1out-of-state use.
2(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
3102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
4    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
5    Sec. 9. Each serviceman required or authorized to collect
6the tax herein imposed shall pay to the Department the amount
7of such tax (except as otherwise provided) at the time when he
8is required to file his return for the period during which such
9tax was collected, less a discount of 2.1% prior to January 1,
101990 and 1.75% on and after January 1, 1990, or $5 per calendar
11year, whichever is greater, which is allowed to reimburse the
12serviceman for expenses incurred in collecting the tax,
13keeping records, preparing and filing returns, remitting the
14tax and supplying data to the Department on request. When
15determining the discount allowed under this Section,
16servicemen shall include the amount of tax that would have
17been due at the 1% rate but for the 0% rate imposed under this
18amendatory Act of the 102nd General Assembly. The discount
19under this Section is not allowed for the 1.25% portion of
20taxes paid on aviation fuel that is subject to the revenue use
21requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
22discount allowed under this Section is allowed only for
23returns that are filed in the manner required by this Act. The
24Department may disallow the discount for servicemen whose
25certificate of registration is revoked at the time the return

 

 

10200HB1539sam001- 230 -LRB102 03555 HLH 39048 a

1is filed, but only if the Department's decision to revoke the
2certificate of registration has become final. A serviceman
3need not remit that part of any tax collected by him to the
4extent that he is required to pay and does pay the tax imposed
5by the Service Occupation Tax Act with respect to his sale of
6service involving the incidental transfer by him of the same
7property.
8    Except as provided hereinafter in this Section, on or
9before the twentieth day of each calendar month, such
10serviceman shall file a return for the preceding calendar
11month in accordance with reasonable Rules and Regulations to
12be promulgated by the Department. Such return shall be filed
13on a form prescribed by the Department and shall contain such
14information as the Department may reasonably require. The
15return shall include the gross receipts which were received
16during the preceding calendar month or quarter on the
17following items upon which tax would have been due but for the
180% rate imposed under this amendatory Act of the 102nd General
19Assembly: (i) food for human consumption that is to be
20consumed 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); and (ii) food prepared for immediate
24consumption and transferred incident to a sale of service
25subject to this Act or the Service Occupation Tax Act by an
26entity licensed under the Hospital Licensing Act, the Nursing

 

 

10200HB1539sam001- 231 -LRB102 03555 HLH 39048 a

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. The return shall also include
6the amount of tax that would have been due on the items listed
7in the previous sentence but for the 0% rate imposed under this
8amendatory Act of the 102nd General Assembly.
9    On and after January 1, 2018, with respect to servicemen
10whose annual gross receipts average $20,000 or more, all
11returns required to be filed pursuant to this Act shall be
12filed electronically. Servicemen who demonstrate that they do
13not have access to the Internet or demonstrate hardship in
14filing electronically may petition the Department to waive the
15electronic filing requirement.
16    The Department may require returns to be filed on a
17quarterly basis. If so required, a return for each calendar
18quarter shall be filed on or before the twentieth day of the
19calendar month following the end of such calendar quarter. The
20taxpayer shall also file a return with the Department for each
21of the first two months of each calendar quarter, on or before
22the twentieth day of the following calendar month, stating:
23        1. The name of the seller;
24        2. The address of the principal place of business from
25    which he engages in business as a serviceman in this
26    State;

 

 

10200HB1539sam001- 232 -LRB102 03555 HLH 39048 a

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

 

 

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1the return shall be considered valid and any amount shown to be
2due on the return shall be deemed assessed.
3    Notwithstanding any other provision of this Act to the
4contrary, servicemen subject to tax on cannabis shall file all
5cannabis tax returns and shall make all cannabis tax payments
6by electronic means in the manner and form required by the
7Department.
8    Beginning October 1, 1993, a taxpayer who has an average
9monthly tax liability of $150,000 or more shall make all
10payments required by rules of the Department by electronic
11funds transfer. Beginning October 1, 1994, a taxpayer who has
12an average monthly tax liability of $100,000 or more shall
13make all payments required by rules of the Department by
14electronic funds transfer. Beginning October 1, 1995, a
15taxpayer who has an average monthly tax liability of $50,000
16or more shall make all payments required by rules of the
17Department by electronic funds transfer. Beginning October 1,
182000, a taxpayer who has an annual tax liability of $200,000 or
19more shall make all payments required by rules of the
20Department by electronic funds transfer. The term "annual tax
21liability" shall be the sum of the taxpayer's liabilities
22under this Act, and under all other State and local occupation
23and use tax laws administered by the Department, for the
24immediately preceding calendar year. The term "average monthly
25tax liability" means the sum of the taxpayer's liabilities
26under this Act, and under all other State and local occupation

 

 

10200HB1539sam001- 234 -LRB102 03555 HLH 39048 a

1and use tax laws administered by the Department, for the
2immediately preceding calendar year divided by 12. Beginning
3on October 1, 2002, a taxpayer who has a tax liability in the
4amount set forth in subsection (b) of Section 2505-210 of the
5Department of Revenue Law shall make all payments required by
6rules of the Department by electronic funds transfer.
7    Before August 1 of each year beginning in 1993, the
8Department shall notify all taxpayers required to make
9payments by electronic funds transfer. All taxpayers required
10to make payments by electronic funds transfer shall make those
11payments for a minimum of one year beginning on October 1.
12    Any taxpayer not required to make payments by electronic
13funds transfer may make payments by electronic funds transfer
14with the permission of the Department.
15    All taxpayers required to make payment by electronic funds
16transfer and any taxpayers authorized to voluntarily make
17payments by electronic funds transfer shall make those
18payments in the manner authorized by the Department.
19    The Department shall adopt such rules as are necessary to
20effectuate a program of electronic funds transfer and the
21requirements of this Section.
22    If the serviceman is otherwise required to file a monthly
23return and if the serviceman's average monthly tax liability
24to the Department does not exceed $200, the Department may
25authorize his returns to be filed on a quarter annual basis,
26with the return for January, February and March of a given year

 

 

10200HB1539sam001- 235 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 236 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 237 -LRB102 03555 HLH 39048 a

1such serviceman shall not file each return that is due as a
2single return covering all such registered businesses, but
3shall file separate returns for each such registered business.
4    Beginning January 1, 1990, each month the Department shall
5pay into the State and Local Tax Reform Fund, a special fund in
6the State Treasury, the net revenue realized for the preceding
7month from the 1% tax imposed under this Act.
8    Beginning January 1, 1990, each month the Department shall
9pay into the State and Local Sales Tax Reform Fund 20% of the
10net revenue realized for the preceding month from the 6.25%
11general rate on transfers of tangible personal property, other
12than (i) tangible personal property which is purchased outside
13Illinois at retail from a retailer and which is titled or
14registered by an agency of this State's government and (ii)
15aviation fuel sold on or after December 1, 2019. This
16exception for aviation fuel only applies for so long as the
17revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1847133 are binding on the State.
19    For aviation fuel sold on or after December 1, 2019, each
20month the Department shall pay into the State Aviation Program
21Fund 20% of the net revenue realized for the preceding month
22from the 6.25% general rate on the selling price of aviation
23fuel, less an amount estimated by the Department to be
24required for refunds of the 20% portion of the tax on aviation
25fuel under this Act, which amount shall be deposited into the
26Aviation Fuel Sales Tax Refund Fund. The Department shall only

 

 

10200HB1539sam001- 238 -LRB102 03555 HLH 39048 a

1pay moneys into the State Aviation Program Fund and the
2Aviation Fuel Sales Tax Refund Fund under this Act for so long
3as the revenue use requirements of 49 U.S.C. 47107(b) and 49
4U.S.C. 47133 are binding on the State.
5    Beginning August 1, 2000, each month the Department shall
6pay into the State and Local Sales Tax Reform Fund 100% of the
7net revenue realized for the preceding month from the 1.25%
8rate on the selling price of motor fuel and gasohol.
9    Beginning October 1, 2009, each month the Department shall
10pay into the Capital Projects Fund an amount that is equal to
11an amount estimated by the Department to represent 80% of the
12net revenue realized for the preceding month from the sale of
13candy, grooming and hygiene products, and soft drinks that had
14been taxed at a rate of 1% prior to September 1, 2009 but that
15are now taxed at 6.25%.
16    Beginning July 1, 2013, each month the Department shall
17pay into the Underground Storage Tank Fund from the proceeds
18collected under this Act, the Use Tax Act, the Service
19Occupation Tax Act, and the Retailers' Occupation Tax Act an
20amount equal to the average monthly deficit in the Underground
21Storage Tank Fund during the prior year, as certified annually
22by the Illinois Environmental Protection Agency, but the total
23payment into the Underground Storage Tank Fund under this Act,
24the Use Tax Act, the Service Occupation Tax Act, and the
25Retailers' Occupation Tax Act shall not exceed $18,000,000 in
26any State fiscal year. As used in this paragraph, the "average

 

 

10200HB1539sam001- 239 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 240 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 241 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 242 -LRB102 03555 HLH 39048 a

1installment of the amount requested in the certificate of the
2Chairman of the Metropolitan Pier and Exposition Authority
3provided under Section 8.25f of the State Finance Act, but not
4in excess of the sums designated as "Total Deposit", shall be
5deposited in the aggregate from collections under Section 9 of
6the Use Tax Act, Section 9 of the Service Use Tax Act, Section
79 of the Service Occupation Tax Act, and Section 3 of the
8Retailers' Occupation Tax Act into the McCormick Place
9Expansion Project Fund in the specified fiscal years.
 
10Fiscal YearTotal Deposit
111993         $0
121994 53,000,000
131995 58,000,000
141996 61,000,000
151997 64,000,000
161998 68,000,000
171999 71,000,000
182000 75,000,000
192001 80,000,000
202002 93,000,000
212003 99,000,000
222004103,000,000
232005108,000,000
242006113,000,000
252007119,000,000

 

 

10200HB1539sam001- 243 -LRB102 03555 HLH 39048 a

12008126,000,000
22009132,000,000
32010139,000,000
42011146,000,000
52012153,000,000
62013161,000,000
72014170,000,000
82015179,000,000
92016189,000,000
102017199,000,000
112018210,000,000
122019221,000,000
132020233,000,000
142021300,000,000
152022300,000,000
162023300,000,000
172024 300,000,000
182025 300,000,000
192026 300,000,000
202027 375,000,000
212028 375,000,000
222029 375,000,000
232030 375,000,000
242031 375,000,000
252032 375,000,000
262033 375,000,000

 

 

10200HB1539sam001- 244 -LRB102 03555 HLH 39048 a

12034375,000,000
22035375,000,000
32036450,000,000
4and
5each fiscal year
6thereafter that bonds
7are outstanding under
8Section 13.2 of the
9Metropolitan Pier and
10Exposition Authority Act,
11but not after fiscal year 2060.
12    Beginning July 20, 1993 and in each month of each fiscal
13year thereafter, one-eighth of the amount requested in the
14certificate of the Chairman of the Metropolitan Pier and
15Exposition Authority for that fiscal year, less the amount
16deposited into the McCormick Place Expansion Project Fund by
17the State Treasurer in the respective month under subsection
18(g) of Section 13 of the Metropolitan Pier and Exposition
19Authority Act, plus cumulative deficiencies in the deposits
20required under this Section for previous months and years,
21shall be deposited into the McCormick Place Expansion Project
22Fund, until the full amount requested for the fiscal year, but
23not in excess of the amount specified above as "Total
24Deposit", has been deposited.
25    Subject to payment of amounts into the Capital Projects
26Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,

 

 

10200HB1539sam001- 245 -LRB102 03555 HLH 39048 a

1and the McCormick Place Expansion Project Fund pursuant to the
2preceding paragraphs or in any amendments thereto hereafter
3enacted, for aviation fuel sold on or after December 1, 2019,
4the Department shall each month deposit into the Aviation Fuel
5Sales Tax Refund Fund an amount estimated by the Department to
6be required for refunds of the 80% portion of the tax on
7aviation fuel under this Act. The Department shall only
8deposit moneys into the Aviation Fuel Sales Tax Refund Fund
9under this paragraph 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    Subject to payment of amounts into the Build Illinois Fund
13and the McCormick Place Expansion Project Fund pursuant to the
14preceding paragraphs or in any amendments thereto hereafter
15enacted, beginning July 1, 1993 and ending on September 30,
162013, the Department shall each month pay into the Illinois
17Tax Increment Fund 0.27% of 80% of the net revenue realized for
18the preceding month from the 6.25% general rate on the selling
19price of tangible personal property.
20    Subject to payment of amounts into the Build Illinois Fund
21and the McCormick Place Expansion Project Fund pursuant to the
22preceding paragraphs or in any amendments thereto hereafter
23enacted, beginning with the receipt of the first report of
24taxes paid by an eligible business and continuing for a
2525-year period, the Department shall each month pay into the
26Energy Infrastructure Fund 80% of the net revenue realized

 

 

10200HB1539sam001- 246 -LRB102 03555 HLH 39048 a

1from the 6.25% general rate on the selling price of
2Illinois-mined coal that was sold to an eligible business. For
3purposes of this paragraph, the term "eligible business" means
4a new electric generating facility certified pursuant to
5Section 605-332 of the Department of Commerce and Economic
6Opportunity Law of the Civil Administrative Code of Illinois.
7    Subject to payment of amounts into the Build Illinois
8Fund, the McCormick Place Expansion Project Fund, the Illinois
9Tax Increment Fund, and the Energy Infrastructure Fund
10pursuant to the preceding paragraphs or in any amendments to
11this Section hereafter enacted, beginning on the first day of
12the first calendar month to occur on or after August 26, 2014
13(the effective date of Public Act 98-1098), each month, from
14the collections made under Section 9 of the Use Tax Act,
15Section 9 of the Service Use Tax Act, Section 9 of the Service
16Occupation Tax Act, and Section 3 of the Retailers' Occupation
17Tax Act, the Department shall pay into the Tax Compliance and
18Administration Fund, to be used, subject to appropriation, to
19fund additional auditors and compliance personnel at the
20Department of Revenue, an amount equal to 1/12 of 5% of 80% of
21the cash receipts collected during the preceding fiscal year
22by the Audit Bureau of the Department under the Use Tax Act,
23the Service Use Tax Act, the Service Occupation Tax Act, the
24Retailers' Occupation Tax Act, and associated local occupation
25and use taxes administered by the Department.
26    Subject to payments of amounts into the Build Illinois

 

 

10200HB1539sam001- 247 -LRB102 03555 HLH 39048 a

1Fund, the McCormick Place Expansion Project Fund, the Illinois
2Tax Increment Fund, the Energy Infrastructure Fund, and the
3Tax Compliance and Administration Fund as provided in this
4Section, beginning on July 1, 2018 the Department shall pay
5each month into the Downstate Public Transportation Fund the
6moneys required to be so paid under Section 2-3 of the
7Downstate Public Transportation Act.
8    Subject to successful execution and delivery of a
9public-private agreement between the public agency and private
10entity and completion of the civic build, beginning on July 1,
112023, of the remainder of the moneys received by the
12Department under the Use Tax Act, the Service Use Tax Act, the
13Service Occupation Tax Act, and this Act, the Department shall
14deposit the following specified deposits in the aggregate from
15collections under the Use Tax Act, the Service Use Tax Act, the
16Service Occupation Tax Act, and the Retailers' Occupation Tax
17Act, as required under Section 8.25g of the State Finance Act
18for distribution consistent with the Public-Private
19Partnership for Civic and Transit Infrastructure Project Act.
20The moneys received by the Department pursuant to this Act and
21required to be deposited into the Civic and Transit
22Infrastructure Fund are subject to the pledge, claim, and
23charge set forth in Section 25-55 of the Public-Private
24Partnership for Civic and Transit Infrastructure Project Act.
25As used in this paragraph, "civic build", "private entity",
26"public-private agreement", and "public agency" have the

 

 

10200HB1539sam001- 248 -LRB102 03555 HLH 39048 a

1meanings provided in Section 25-10 of the Public-Private
2Partnership for Civic and Transit Infrastructure Project Act.
3        Fiscal Year............................Total Deposit
4        2024....................................$200,000,000
5        2025....................................$206,000,000
6        2026....................................$212,200,000
7        2027....................................$218,500,000
8        2028....................................$225,100,000
9        2029....................................$288,700,000
10        2030....................................$298,900,000
11        2031....................................$309,300,000
12        2032....................................$320,100,000
13        2033....................................$331,200,000
14        2034....................................$341,200,000
15        2035....................................$351,400,000
16        2036....................................$361,900,000
17        2037....................................$372,800,000
18        2038....................................$384,000,000
19        2039....................................$395,500,000
20        2040....................................$407,400,000
21        2041....................................$419,600,000
22        2042....................................$432,200,000
23        2043....................................$445,100,000
24    Beginning July 1, 2021 and until July 1, 2022, subject to
25the payment of amounts into the State and Local Sales Tax
26Reform Fund, the Build Illinois Fund, the McCormick Place

 

 

10200HB1539sam001- 249 -LRB102 03555 HLH 39048 a

1Expansion Project Fund, the Illinois Tax Increment Fund, the
2Energy Infrastructure Fund, and the Tax Compliance and
3Administration Fund as provided in this Section, the
4Department shall pay each month into the Road Fund the amount
5estimated to represent 16% of the net revenue realized from
6the taxes imposed on motor fuel and gasohol. Beginning July 1,
72022 and until July 1, 2023, subject to the payment of amounts
8into the State and Local Sales Tax Reform Fund, the Build
9Illinois Fund, the McCormick Place Expansion Project Fund, the
10Illinois Tax Increment Fund, the Energy Infrastructure Fund,
11and the Tax Compliance and Administration Fund as provided in
12this Section, the Department shall pay each month into the
13Road Fund the amount estimated to represent 32% of the net
14revenue realized from the taxes imposed on motor fuel and
15gasohol. Beginning July 1, 2023 and until July 1, 2024,
16subject to the payment of amounts into the State and Local
17Sales Tax Reform Fund, the Build Illinois Fund, the McCormick
18Place Expansion Project Fund, the Illinois Tax Increment Fund,
19the Energy Infrastructure Fund, and the Tax Compliance and
20Administration Fund as provided in this Section, the
21Department shall pay each month into the Road Fund the amount
22estimated to represent 48% of the net revenue realized from
23the taxes imposed on motor fuel and gasohol. Beginning July 1,
242024 and until July 1, 2025, subject to the payment of amounts
25into the State and Local Sales Tax Reform Fund, the Build
26Illinois Fund, the McCormick Place Expansion Project Fund, the

 

 

10200HB1539sam001- 250 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 251 -LRB102 03555 HLH 39048 a

1shall order transferred and the Treasurer shall transfer from
2the General Revenue Fund to the Motor Fuel Tax Fund an amount
3equal to 1.7% of 80% of the net revenue realized under this Act
4for the second preceding month. Beginning April 1, 2000, this
5transfer is no longer required and shall not be made.
6    Net revenue realized for a month shall be the revenue
7collected by the State pursuant to this Act, less the amount
8paid out during that month as refunds to taxpayers for
9overpayment of liability.
10(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
11100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
1215, Section 15-15, eff. 6-5-19; 101-10, Article 25, Section
1325-110, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
146-28-19; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
 
15    Section 60-25. The Service Occupation Tax Act is amended
16by changing Sections 3-10 and 9 as follows:
 
17    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
18    Sec. 3-10. Rate of tax. Unless otherwise provided in this
19Section, the tax imposed by this Act is at the rate of 6.25% of
20the "selling price", as defined in Section 2 of the Service Use
21Tax Act, of the tangible personal property. For the purpose of
22computing this tax, in no event shall the "selling price" be
23less than the cost price to the serviceman of the tangible
24personal property transferred. The selling price of each item

 

 

10200HB1539sam001- 252 -LRB102 03555 HLH 39048 a

1of tangible personal property transferred as an incident of a
2sale of service may be shown as a distinct and separate item on
3the serviceman's billing to the service customer. If the
4selling price is not so shown, the selling price of the
5tangible personal property is deemed to be 50% of the
6serviceman's entire billing to the service customer. When,
7however, a serviceman contracts to design, develop, and
8produce special order machinery or equipment, the tax imposed
9by this Act shall be based on the serviceman's cost price of
10the tangible personal property transferred incident to the
11completion of the contract.
12    Beginning on July 1, 2000 and through December 31, 2000,
13with respect to motor fuel, as defined in Section 1.1 of the
14Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
15the Use Tax Act, the tax is imposed at the rate of 1.25%.
16    With respect to gasohol, as defined in the Use Tax Act, the
17tax imposed by this Act shall apply to (i) 70% of the cost
18price of property transferred as an incident to the sale of
19service on or after January 1, 1990, and before July 1, 2003,
20(ii) 80% of the selling price of property transferred as an
21incident to the sale of service on or after July 1, 2003 and on
22or before July 1, 2017, and (iii) 100% of the cost price
23thereafter. If, at any time, however, the tax under this Act on
24sales of gasohol, as defined in the Use Tax Act, is imposed at
25the rate of 1.25%, then the tax imposed by this Act applies to
26100% of the proceeds of sales of gasohol made during that time.

 

 

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1    With respect to majority blended ethanol fuel, as defined
2in the Use Tax Act, the tax imposed by this Act does not apply
3to the selling price of property transferred as an incident to
4the sale of service on or after July 1, 2003 and on or before
5December 31, 2023 but applies to 100% of the selling price
6thereafter.
7    With respect to biodiesel blends, as defined in the Use
8Tax Act, with no less than 1% and no more than 10% biodiesel,
9the tax imposed by this Act applies to (i) 80% of the selling
10price of property transferred as an incident to the sale of
11service on or after July 1, 2003 and on or before December 31,
122018 and (ii) 100% of the proceeds of the selling price
13thereafter. If, at any time, however, the tax under this Act on
14sales of biodiesel blends, as defined in the Use Tax Act, with
15no less than 1% and no more than 10% biodiesel is imposed at
16the rate of 1.25%, then the tax imposed by this Act applies to
17100% of the proceeds of sales of biodiesel blends with no less
18than 1% and no more than 10% biodiesel made during that time.
19    With respect to 100% biodiesel, as defined in the Use Tax
20Act, and biodiesel blends, as defined in the Use Tax Act, with
21more than 10% but no more than 99% biodiesel material, the tax
22imposed by this Act does not apply to the proceeds of the
23selling price of property transferred as an incident to the
24sale of service on or after July 1, 2003 and on or before
25December 31, 2023 but applies to 100% of the selling price
26thereafter.

 

 

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1    At the election of any registered serviceman made for each
2fiscal year, sales of service in which the aggregate annual
3cost price of tangible personal property transferred as an
4incident to the sales of service is less than 35%, or 75% in
5the case of servicemen transferring prescription drugs or
6servicemen engaged in graphic arts production, of the
7aggregate annual total gross receipts from all sales of
8service, the tax imposed by this Act shall be based on the
9serviceman's cost price of the tangible personal property
10transferred incident to the sale of those services.
11    Until July 1, 2022 and beginning again on July 1, 2023, the
12The tax shall be imposed at the rate of 1% on food prepared for
13immediate consumption and transferred incident to a sale of
14service subject to this Act or the Service Use Occupation Tax
15Act by an entity licensed under the Hospital Licensing Act,
16the Nursing Home Care Act, the Assisted Living and Shared
17Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
18Specialized Mental Health Rehabilitation Act of 2013, or the
19Child Care Act of 1969, or an entity that holds a permit issued
20pursuant to the Life Care Facilities Act. Until July 1, 2022
21and beginning again on July 1, 2023, the The tax shall also be
22imposed at the rate of 1% on food for human consumption that is
23to be consumed off the premises where it is sold (other than
24alcoholic beverages, food consisting of or infused with adult
25use cannabis, soft drinks, and food that has been prepared for
26immediate consumption and is not otherwise included in this

 

 

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1paragraph).
2    Beginning on July 1, 2022 and until July 1, 2023, the tax
3shall be imposed at the rate of 0% on food prepared for
4immediate consumption and transferred incident to a sale of
5service subject to this Act or the Service Use Tax Act by an
6entity licensed under the Hospital Licensing Act, the Nursing
7Home Care Act, the Assisted Living and Shared Housing Act, the
8ID/DD Community Care Act, the MC/DD Act, the Specialized
9Mental Health Rehabilitation Act of 2013, or the Child Care
10Act of 1969, or an entity that holds a permit issued pursuant
11to the Life Care Facilities Act. Beginning July 1, 2022 and
12until July 1, 2023, the tax shall also be imposed at the rate
13of 0% on food for human consumption that is to be consumed off
14the premises where it is sold (other than alcoholic beverages,
15food consisting of or infused with adult use cannabis, soft
16drinks, and food that has been prepared for immediate
17consumption and is not otherwise included in this paragraph).
18    The tax shall also be imposed at the rate of 1% on and
19prescription and nonprescription medicines, drugs, medical
20appliances, products classified as Class III medical devices
21by the United States Food and Drug Administration that are
22used for cancer treatment pursuant to a prescription, as well
23as any accessories and components related to those devices,
24modifications to a motor vehicle for the purpose of rendering
25it usable by a person with a disability, and insulin, blood
26sugar testing materials, syringes, and needles used by human

 

 

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

 

 

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1off the premises where it is sold" includes all food sold
2through a vending machine, except soft drinks, candy, and food
3products that are dispensed hot from a vending machine,
4regardless of the location of the vending machine.
5    Notwithstanding any other provisions of this Act,
6beginning September 1, 2009, "food for human consumption that
7is to be consumed off the premises where it is sold" does not
8include candy. For purposes of this Section, "candy" means a
9preparation of sugar, honey, or other natural or artificial
10sweeteners in combination with chocolate, fruits, nuts or
11other ingredients or flavorings in the form of bars, drops, or
12pieces. "Candy" does not include any preparation that contains
13flour or requires refrigeration.
14    Notwithstanding any other provisions of this Act,
15beginning September 1, 2009, "nonprescription medicines and
16drugs" does not include grooming and hygiene products. For
17purposes of this Section, "grooming and hygiene products"
18includes, but is not limited to, soaps and cleaning solutions,
19shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
20lotions and screens, unless those products are available by
21prescription only, regardless of whether the products meet the
22definition of "over-the-counter-drugs". For the purposes of
23this paragraph, "over-the-counter-drug" means a drug for human
24use that contains a label that identifies the product as a drug
25as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
26label includes:

 

 

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1        (A) A "Drug Facts" panel; or
2        (B) A statement of the "active ingredient(s)" with a
3    list of those ingredients contained in the compound,
4    substance or preparation.
5    Beginning on January 1, 2014 (the effective date of Public
6Act 98-122), "prescription and nonprescription medicines and
7drugs" includes medical cannabis purchased from a registered
8dispensing organization under the Compassionate Use of Medical
9Cannabis Program Act.
10    As used in this Section, "adult use cannabis" means
11cannabis subject to tax under the Cannabis Cultivation
12Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
13and does not include cannabis subject to tax under the
14Compassionate Use of Medical Cannabis Program Act.
15(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
16102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
17    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
18    Sec. 9. Each serviceman required or authorized to collect
19the tax herein imposed shall pay to the Department the amount
20of such tax at the time when he is required to file his return
21for the period during which such tax was collectible, less a
22discount of 2.1% prior to January 1, 1990, and 1.75% on and
23after January 1, 1990, or $5 per calendar year, whichever is
24greater, which is allowed to reimburse the serviceman for
25expenses incurred in collecting the tax, keeping records,

 

 

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1preparing and filing returns, remitting the tax and supplying
2data to the Department on request. When determining the
3discount allowed under this Section, servicemen shall include
4the amount of tax that would have been due at the 1% rate but
5for the 0% rate imposed under this amendatory Act of the 102nd
6General Assembly. The discount under this Section is not
7allowed for the 1.25% portion of taxes paid on aviation fuel
8that is subject to the revenue use requirements of 49 U.S.C.
947107(b) and 49 U.S.C. 47133. The discount allowed under this
10Section is allowed only for returns that are filed in the
11manner required by this Act. The Department may disallow the
12discount for servicemen whose certificate of registration is
13revoked at the time the return is filed, but only if the
14Department's decision to revoke the certificate of
15registration has become final.
16    Where such tangible personal property is sold under a
17conditional sales contract, or under any other form of sale
18wherein the payment of the principal sum, or a part thereof, is
19extended beyond the close of the period for which the return is
20filed, the serviceman, in collecting the tax may collect, for
21each tax return period, only the tax applicable to the part of
22the selling price actually received during such tax return
23period.
24    Except as provided hereinafter in this Section, on or
25before the twentieth day of each calendar month, such
26serviceman shall file a return for the preceding calendar

 

 

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1month in accordance with reasonable rules and regulations to
2be promulgated by the Department of Revenue. Such return shall
3be filed on a form prescribed by the Department and shall
4contain such information as the Department may reasonably
5require. The return shall include the gross receipts which
6were received during the preceding calendar month or quarter
7on the following items upon which tax would have been due but
8for the 0% rate imposed under this amendatory Act of the 102nd
9General Assembly: (i) food for human consumption that is to be
10consumed off the premises where it is sold (other than
11alcoholic beverages, food consisting of or infused with adult
12use cannabis, soft drinks, and food that has been prepared for
13immediate consumption); and (ii) food prepared for immediate
14consumption and transferred incident to a sale of service
15subject to this Act or the Service Use Tax Act by an entity
16licensed under the Hospital Licensing Act, the Nursing Home
17Care Act, the Assisted Living and Shared Housing Act, the
18ID/DD Community Care Act, the MC/DD Act, the Specialized
19Mental Health Rehabilitation Act of 2013, or the Child Care
20Act of 1969, or an entity that holds a permit issued pursuant
21to the Life Care Facilities Act. The return shall also include
22the amount of tax that would have been due on the items listed
23in the previous sentence but for the 0% rate imposed under this
24amendatory Act of the 102nd General Assembly.
25    On and after January 1, 2018, with respect to servicemen
26whose annual gross receipts average $20,000 or more, all

 

 

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1returns required to be filed pursuant to this Act shall be
2filed electronically. Servicemen who demonstrate that they do
3not have access to the Internet or demonstrate hardship in
4filing electronically may petition the Department to waive the
5electronic filing requirement.
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 two months of each calendar quarter, on or before
12the twentieth day of the following calendar month, stating:
13        1. The name of the seller;
14        2. The address of the principal place of business from
15    which he engages in business as a serviceman in this
16    State;
17        3. The total amount of taxable receipts received by
18    him during the preceding calendar month, including
19    receipts from charge and time sales, but less all
20    deductions allowed by law;
21        4. The amount of credit provided in Section 2d of this
22    Act;
23        5. The amount of tax due;
24        5-5. The signature of the taxpayer; and
25        6. Such other reasonable information as the Department
26    may require.

 

 

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1    Each serviceman required or authorized to collect the tax
2herein imposed on aviation fuel acquired as an incident to the
3purchase of a service in this State during the preceding
4calendar month shall, instead of reporting and paying tax as
5otherwise required by this Section, report and pay such tax on
6a separate aviation fuel tax return. The requirements related
7to the return shall be as otherwise provided in this Section.
8Notwithstanding any other provisions of this Act to the
9contrary, servicemen transferring aviation fuel incident to
10sales of service shall file all aviation fuel tax returns and
11shall make all aviation fuel tax payments by electronic means
12in the manner and form required by the Department. For
13purposes of this Section, "aviation fuel" means jet fuel and
14aviation gasoline.
15    If a taxpayer fails to sign a return within 30 days after
16the proper notice and demand for signature by the Department,
17the return shall be considered valid and any amount shown to be
18due on the return shall be deemed assessed.
19    Notwithstanding any other provision of this Act to the
20contrary, servicemen subject to tax on cannabis shall file all
21cannabis tax returns and shall make all cannabis tax payments
22by electronic means in the manner and form required by the
23Department.
24    Prior to October 1, 2003, and on and after September 1,
252004 a serviceman may accept a Manufacturer's Purchase Credit
26certification from a purchaser in satisfaction of Service Use

 

 

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1Tax as provided in Section 3-70 of the Service Use Tax Act if
2the purchaser provides the appropriate documentation as
3required by Section 3-70 of the Service Use Tax Act. A
4Manufacturer's Purchase Credit certification, accepted prior
5to October 1, 2003 or on or after September 1, 2004 by a
6serviceman as provided in Section 3-70 of the Service Use Tax
7Act, may be used by that serviceman to satisfy Service
8Occupation Tax liability in the amount claimed in the
9certification, not to exceed 6.25% of the receipts subject to
10tax from a qualifying purchase. A Manufacturer's Purchase
11Credit reported on any original or amended return filed under
12this Act after October 20, 2003 for reporting periods prior to
13September 1, 2004 shall be disallowed. Manufacturer's Purchase
14Credit reported on annual returns due on or after January 1,
152005 will be disallowed for periods prior to September 1,
162004. No Manufacturer's Purchase Credit may be used after
17September 30, 2003 through August 31, 2004 to satisfy any tax
18liability imposed under this Act, including any audit
19liability.
20    If the serviceman's average monthly tax liability to the
21Department does not exceed $200, the Department may authorize
22his returns to be filed on a quarter annual basis, with the
23return for January, February and March of a given year being
24due by April 20 of such year; with the return for April, May
25and June of a given year being due by July 20 of such year;
26with the return for July, August and September of a given year

 

 

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1being due by October 20 of such year, and with the return for
2October, November and December of a given year being due by
3January 20 of the following year.
4    If the serviceman's average monthly tax liability to the
5Department does not exceed $50, the Department may authorize
6his returns to be filed on an annual basis, with the return for
7a given year being due by January 20 of the following year.
8    Such quarter annual and annual returns, as to form and
9substance, shall be subject to the same requirements as
10monthly returns.
11    Notwithstanding any other provision in this Act concerning
12the time within which a serviceman may file his return, in the
13case of any serviceman who ceases to engage in a kind of
14business which makes him responsible for filing returns under
15this Act, such serviceman shall file a final return under this
16Act with the Department not more than 1 month after
17discontinuing such business.
18    Beginning October 1, 1993, a taxpayer who has an average
19monthly tax liability of $150,000 or more shall make all
20payments required by rules of the Department by electronic
21funds transfer. Beginning October 1, 1994, a taxpayer who has
22an average monthly tax liability of $100,000 or more shall
23make all payments required by rules of the Department by
24electronic funds transfer. Beginning October 1, 1995, a
25taxpayer who has an average monthly tax liability of $50,000
26or more shall make all payments required by rules of the

 

 

10200HB1539sam001- 265 -LRB102 03555 HLH 39048 a

1Department by electronic funds transfer. Beginning October 1,
22000, a taxpayer who has an annual tax liability of $200,000 or
3more shall make all payments required by rules of the
4Department by electronic funds transfer. The term "annual tax
5liability" shall be the sum of the taxpayer's liabilities
6under this Act, and under all other State and local occupation
7and use tax laws administered by the Department, for the
8immediately preceding calendar year. The term "average monthly
9tax liability" means the sum of the taxpayer's liabilities
10under this Act, and under all other State and local occupation
11and use tax laws administered by the Department, for the
12immediately preceding calendar year divided by 12. Beginning
13on October 1, 2002, a taxpayer who has a tax liability in the
14amount set forth in subsection (b) of Section 2505-210 of the
15Department of Revenue Law shall make all payments required by
16rules of the Department by electronic funds transfer.
17    Before August 1 of each year beginning in 1993, the
18Department shall notify all taxpayers required to make
19payments by electronic funds transfer. All taxpayers required
20to make payments by electronic funds transfer shall make those
21payments for a minimum of one year beginning on October 1.
22    Any taxpayer not required to make payments by electronic
23funds transfer may make payments by electronic funds transfer
24with the permission of the Department.
25    All taxpayers required to make payment by electronic funds
26transfer and any taxpayers authorized to voluntarily make

 

 

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1payments by electronic funds transfer shall make those
2payments in the manner authorized by the Department.
3    The Department shall adopt such rules as are necessary to
4effectuate a program of electronic funds transfer and the
5requirements of this Section.
6    Where a serviceman collects the tax with respect to the
7selling price of tangible personal property which he sells and
8the purchaser thereafter returns such tangible personal
9property and the serviceman refunds the selling price thereof
10to the purchaser, such serviceman shall also refund, to the
11purchaser, the tax so collected from the purchaser. When
12filing his return for the period in which he refunds such tax
13to the purchaser, the serviceman may deduct the amount of the
14tax so refunded by him to the purchaser from any other Service
15Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
16Use Tax which such serviceman may be required to pay or remit
17to the Department, as shown by such return, provided that the
18amount of the tax to be deducted shall previously have been
19remitted to the Department by such serviceman. If the
20serviceman shall not previously have remitted the amount of
21such tax to the Department, he shall be entitled to no
22deduction hereunder upon refunding such tax to the purchaser.
23    If experience indicates such action to be practicable, the
24Department may prescribe and furnish a combination or joint
25return which will enable servicemen, who are required to file
26returns hereunder and also under the Retailers' Occupation Tax

 

 

10200HB1539sam001- 267 -LRB102 03555 HLH 39048 a

1Act, the Use Tax Act or the Service Use Tax Act, to furnish all
2the return information required by all said Acts on the one
3form.
4    Where the serviceman has more than one business registered
5with the Department under separate registrations hereunder,
6such serviceman shall file separate returns for each
7registered business.
8    Beginning January 1, 1990, each month the Department shall
9pay into the Local Government Tax Fund the revenue realized
10for the preceding month from the 1% tax imposed under this Act.
11    Beginning January 1, 1990, each month the Department shall
12pay into the County and Mass Transit District Fund 4% of the
13revenue realized for the preceding month from the 6.25%
14general rate on sales of tangible personal property other than
15aviation fuel sold on or after December 1, 2019. This
16exception for aviation fuel only applies for so long as the
17revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1847133 are binding on the State.
19    Beginning August 1, 2000, each month the Department shall
20pay into the County and Mass Transit District Fund 20% of the
21net revenue realized for the preceding month from the 1.25%
22rate on the selling price of motor fuel and gasohol.
23    Beginning January 1, 1990, each month the Department shall
24pay into the Local Government Tax Fund 16% of the revenue
25realized for the preceding month from the 6.25% general rate
26on transfers of tangible personal property other than aviation

 

 

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1fuel sold on or after December 1, 2019. This exception for
2aviation fuel only applies 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    For aviation fuel sold on or after December 1, 2019, each
6month the Department shall pay into the State Aviation Program
7Fund 20% of the net revenue realized for the preceding month
8from the 6.25% general rate on the selling price of aviation
9fuel, less an amount estimated by the Department to be
10required for refunds of the 20% portion of the tax on aviation
11fuel under this Act, which amount shall be deposited into the
12Aviation Fuel Sales Tax Refund Fund. The Department shall only
13pay moneys into the State Aviation Program Fund and the
14Aviation Fuel Sales Tax Refund Fund under this Act for so long
15as the revenue use requirements of 49 U.S.C. 47107(b) and 49
16U.S.C. 47133 are binding on the State.
17    Beginning August 1, 2000, each month the Department shall
18pay into the Local Government Tax Fund 80% of the net revenue
19realized for the preceding month from the 1.25% rate on the
20selling price of motor fuel and gasohol.
21    Beginning October 1, 2009, each month the Department shall
22pay into the Capital Projects Fund an amount that is equal to
23an amount estimated by the Department to represent 80% of the
24net revenue realized for the preceding month from the sale of
25candy, grooming and hygiene products, and soft drinks that had
26been taxed at a rate of 1% prior to September 1, 2009 but that

 

 

10200HB1539sam001- 269 -LRB102 03555 HLH 39048 a

1are now taxed at 6.25%.
2    Beginning July 1, 2013, each month the Department shall
3pay into the Underground Storage Tank Fund from the proceeds
4collected under this Act, the Use Tax Act, the Service Use Tax
5Act, and the Retailers' Occupation Tax Act an amount equal to
6the average monthly deficit in the Underground Storage Tank
7Fund during the prior year, as certified annually by the
8Illinois Environmental Protection Agency, but the total
9payment into the Underground Storage Tank Fund under this Act,
10the Use Tax Act, the Service Use Tax Act, and the Retailers'
11Occupation Tax Act shall not exceed $18,000,000 in any State
12fiscal year. As used in this paragraph, the "average monthly
13deficit" shall be equal to the difference between the average
14monthly claims for payment by the fund and the average monthly
15revenues deposited into the fund, excluding payments made
16pursuant to this paragraph.
17    Beginning July 1, 2015, of the remainder of the moneys
18received by the Department under the Use Tax Act, the Service
19Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
20each month the Department shall deposit $500,000 into the
21State Crime Laboratory Fund.
22    Of the remainder of the moneys received by the Department
23pursuant to this Act, (a) 1.75% thereof shall be paid into the
24Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
25and after July 1, 1989, 3.8% thereof shall be paid into the
26Build Illinois Fund; provided, however, that if in any fiscal

 

 

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1year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
2may be, of the moneys received by the Department and required
3to be paid into the Build Illinois Fund pursuant to Section 3
4of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
5Act, Section 9 of the Service Use Tax Act, and Section 9 of the
6Service Occupation Tax Act, such Acts being hereinafter called
7the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
8may be, of moneys being hereinafter called the "Tax Act
9Amount", and (2) the amount transferred to the Build Illinois
10Fund from the State and Local Sales Tax Reform Fund shall be
11less than the Annual Specified Amount (as defined in Section 3
12of the Retailers' Occupation Tax Act), 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 if on the last
16business day of any month the sum of (1) the Tax Act Amount
17required to be deposited into the Build Illinois Account in
18the Build Illinois Fund during such month and (2) the amount
19transferred during such month to the Build Illinois Fund from
20the State and Local Sales Tax Reform Fund shall have been less
21than 1/12 of the Annual Specified Amount, an amount equal to
22the difference shall be immediately paid into the Build
23Illinois Fund from other moneys received by the Department
24pursuant to the Tax Acts; and, further provided, that in no
25event shall the payments required under the preceding proviso
26result in aggregate payments into the Build Illinois Fund

 

 

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1pursuant to this clause (b) for any fiscal year in excess of
2the greater of (i) the Tax Act Amount or (ii) the Annual
3Specified Amount for such fiscal year; and, further provided,
4that the amounts payable into the Build Illinois Fund under
5this clause (b) shall be payable only until such time as the
6aggregate amount on deposit under each trust indenture
7securing Bonds issued and outstanding pursuant to the Build
8Illinois Bond Act is sufficient, taking into account any
9future investment income, to fully provide, in accordance with
10such indenture, for the defeasance of or the payment of the
11principal of, premium, if any, and interest on the Bonds
12secured by such indenture and on any Bonds expected to be
13issued thereafter and all fees and costs payable with respect
14thereto, all as certified by the Director of the Bureau of the
15Budget (now Governor's Office of Management and Budget). If on
16the last business day of any month in which Bonds are
17outstanding pursuant to the Build Illinois Bond Act, the
18aggregate of the moneys deposited in the Build Illinois Bond
19Account in the Build Illinois Fund in such month shall be less
20than the amount required to be transferred in such month from
21the Build Illinois Bond Account to the Build Illinois Bond
22Retirement and Interest Fund pursuant to Section 13 of the
23Build Illinois Bond Act, an amount equal to such deficiency
24shall be immediately paid from other moneys received by the
25Department pursuant to the Tax Acts to the Build Illinois
26Fund; provided, however, that any amounts paid to the Build

 

 

10200HB1539sam001- 272 -LRB102 03555 HLH 39048 a

1Illinois Fund in any fiscal year pursuant to this sentence
2shall be deemed to constitute payments pursuant to clause (b)
3of the preceding sentence and shall reduce the amount
4otherwise payable for such fiscal year pursuant to clause (b)
5of the preceding sentence. The moneys received by the
6Department pursuant to this Act and required to be deposited
7into the Build Illinois Fund are subject to the pledge, claim
8and charge set forth in Section 12 of the Build Illinois Bond
9Act.
10    Subject to payment of amounts into the Build Illinois Fund
11as provided in the preceding paragraph or in any amendment
12thereto hereafter enacted, the following specified monthly
13installment of the amount requested in the certificate of the
14Chairman of the Metropolitan Pier and Exposition Authority
15provided under Section 8.25f of the State Finance Act, but not
16in excess of the sums designated as "Total Deposit", shall be
17deposited in the aggregate from collections under Section 9 of
18the Use Tax Act, Section 9 of the Service Use Tax Act, Section
199 of the Service Occupation Tax Act, and Section 3 of the
20Retailers' Occupation Tax Act into the McCormick Place
21Expansion Project Fund in the specified fiscal years.
 
22Fiscal YearTotal Deposit
231993         $0
241994 53,000,000
251995 58,000,000

 

 

10200HB1539sam001- 273 -LRB102 03555 HLH 39048 a

11996 61,000,000
21997 64,000,000
31998 68,000,000
41999 71,000,000
52000 75,000,000
62001 80,000,000
72002 93,000,000
82003 99,000,000
92004103,000,000
102005108,000,000
112006113,000,000
122007119,000,000
132008126,000,000
142009132,000,000
152010139,000,000
162011146,000,000
172012153,000,000
182013161,000,000
192014170,000,000
202015179,000,000
212016189,000,000
222017199,000,000
232018210,000,000
242019221,000,000
252020233,000,000
262021300,000,000

 

 

10200HB1539sam001- 274 -LRB102 03555 HLH 39048 a

12022300,000,000
22023300,000,000
32024 300,000,000
42025 300,000,000
52026 300,000,000
62027 375,000,000
72028 375,000,000
82029 375,000,000
92030 375,000,000
102031 375,000,000
112032 375,000,000
122033 375,000,000
132034375,000,000
142035375,000,000
152036450,000,000
16and
17each fiscal year
18thereafter that bonds
19are outstanding under
20Section 13.2 of the
21Metropolitan Pier and
22Exposition Authority Act,
23but not after fiscal year 2060.
24    Beginning July 20, 1993 and in each month of each fiscal
25year thereafter, one-eighth of the amount requested in the
26certificate of the Chairman of the Metropolitan Pier and

 

 

10200HB1539sam001- 275 -LRB102 03555 HLH 39048 a

1Exposition Authority for that fiscal year, less the amount
2deposited into the McCormick Place Expansion Project Fund by
3the State Treasurer in the respective month under subsection
4(g) of Section 13 of the Metropolitan Pier and Exposition
5Authority Act, plus cumulative deficiencies in the deposits
6required under this Section for previous months and years,
7shall be deposited into the McCormick Place Expansion Project
8Fund, until the full amount requested for the fiscal year, but
9not in excess of the amount specified above as "Total
10Deposit", has been deposited.
11    Subject to payment of amounts into the Capital Projects
12Fund, the Build Illinois Fund, and the McCormick Place
13Expansion Project Fund pursuant to the preceding paragraphs or
14in any amendments thereto hereafter enacted, for aviation fuel
15sold on or after December 1, 2019, the Department shall each
16month deposit into the Aviation Fuel Sales Tax Refund Fund an
17amount estimated by the Department to be required for refunds
18of the 80% portion of the tax on aviation fuel under this Act.
19The Department shall only deposit moneys into the Aviation
20Fuel Sales Tax Refund Fund under this paragraph for so long as
21the revenue use requirements of 49 U.S.C. 47107(b) and 49
22U.S.C. 47133 are binding on the State.
23    Subject to payment of amounts into the Build Illinois Fund
24and the McCormick Place Expansion Project Fund pursuant to the
25preceding paragraphs or in any amendments thereto hereafter
26enacted, beginning July 1, 1993 and ending on September 30,

 

 

10200HB1539sam001- 276 -LRB102 03555 HLH 39048 a

12013, the Department shall each month pay into the Illinois
2Tax Increment Fund 0.27% of 80% of the net revenue realized for
3the preceding month from the 6.25% general rate on the selling
4price of tangible personal property.
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 with the receipt of the first report of
9taxes paid by an eligible business and continuing for a
1025-year period, the Department shall each month pay into the
11Energy Infrastructure Fund 80% of the net revenue realized
12from the 6.25% general rate on the selling price of
13Illinois-mined coal that was sold to an eligible business. For
14purposes of this paragraph, the term "eligible business" means
15a new electric generating facility certified pursuant to
16Section 605-332 of the Department of Commerce and Economic
17Opportunity Law of the Civil Administrative Code of Illinois.
18    Subject to payment of amounts into the Build Illinois
19Fund, the McCormick Place Expansion Project Fund, the Illinois
20Tax Increment Fund, and the Energy Infrastructure Fund
21pursuant to the preceding paragraphs or in any amendments to
22this Section hereafter enacted, beginning on the first day of
23the first calendar month to occur on or after August 26, 2014
24(the effective date of Public Act 98-1098), each month, from
25the collections made under Section 9 of the Use Tax Act,
26Section 9 of the Service Use Tax Act, Section 9 of the Service

 

 

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1Occupation Tax Act, and Section 3 of the Retailers' Occupation
2Tax Act, the Department shall pay into the Tax Compliance and
3Administration Fund, to be used, subject to appropriation, to
4fund additional auditors and compliance personnel at the
5Department of Revenue, an amount equal to 1/12 of 5% of 80% of
6the cash receipts collected during the preceding fiscal year
7by the Audit Bureau of the Department under the Use Tax Act,
8the Service Use Tax Act, the Service Occupation Tax Act, the
9Retailers' Occupation Tax Act, and associated local occupation
10and use taxes administered by the Department.
11    Subject to payments of amounts into the Build Illinois
12Fund, the McCormick Place Expansion Project Fund, the Illinois
13Tax Increment Fund, the Energy Infrastructure Fund, and the
14Tax Compliance and Administration Fund as provided in this
15Section, beginning on July 1, 2018 the Department shall pay
16each month into the Downstate Public Transportation Fund the
17moneys required to be so paid under Section 2-3 of the
18Downstate Public Transportation Act.
19    Subject to successful execution and delivery of a
20public-private agreement between the public agency and private
21entity and completion of the civic build, beginning on July 1,
222023, of the remainder of the moneys received by the
23Department under the Use Tax Act, the Service Use Tax Act, the
24Service Occupation Tax Act, and this Act, the Department shall
25deposit the following specified deposits in the aggregate from
26collections under the Use Tax Act, the Service Use Tax Act, the

 

 

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1Service Occupation Tax Act, and the Retailers' Occupation Tax
2Act, as required under Section 8.25g of the State Finance Act
3for distribution consistent with the Public-Private
4Partnership for Civic and Transit Infrastructure Project Act.
5The moneys received by the Department pursuant to this Act and
6required to be deposited into the Civic and Transit
7Infrastructure Fund are subject to the pledge, claim and
8charge set forth in Section 25-55 of the Public-Private
9Partnership for Civic and Transit Infrastructure Project Act.
10As used in this paragraph, "civic build", "private entity",
11"public-private agreement", and "public agency" have the
12meanings provided in Section 25-10 of the Public-Private
13Partnership for Civic and Transit Infrastructure Project Act.
14        Fiscal Year............................Total Deposit
15        2024....................................$200,000,000
16        2025....................................$206,000,000
17        2026....................................$212,200,000
18        2027....................................$218,500,000
19        2028....................................$225,100,000
20        2029....................................$288,700,000
21        2030....................................$298,900,000
22        2031....................................$309,300,000
23        2032....................................$320,100,000
24        2033....................................$331,200,000
25        2034....................................$341,200,000
26        2035....................................$351,400,000

 

 

10200HB1539sam001- 279 -LRB102 03555 HLH 39048 a

1        2036....................................$361,900,000
2        2037....................................$372,800,000
3        2038....................................$384,000,000
4        2039....................................$395,500,000
5        2040....................................$407,400,000
6        2041....................................$419,600,000
7        2042....................................$432,200,000
8        2043....................................$445,100,000
9    Beginning July 1, 2021 and until July 1, 2022, subject to
10the payment of amounts into the County and Mass Transit
11District Fund, the Local Government Tax Fund, the Build
12Illinois Fund, the McCormick Place Expansion Project Fund, the
13Illinois Tax Increment Fund, the Energy Infrastructure Fund,
14and the Tax Compliance and Administration Fund as provided in
15this Section, the Department shall pay each month into the
16Road Fund the amount estimated to represent 16% of the net
17revenue realized from the taxes imposed on motor fuel and
18gasohol. Beginning July 1, 2022 and until July 1, 2023,
19subject to the payment of amounts into the County and Mass
20Transit District Fund, the Local Government Tax Fund, the
21Build Illinois Fund, the McCormick Place Expansion Project
22Fund, the Illinois Tax Increment Fund, the Energy
23Infrastructure Fund, and the Tax Compliance and Administration
24Fund as provided in this Section, the Department shall pay
25each month into the Road Fund the amount estimated to
26represent 32% of the net revenue realized from the taxes

 

 

10200HB1539sam001- 280 -LRB102 03555 HLH 39048 a

1imposed on motor fuel and gasohol. Beginning July 1, 2023 and
2until July 1, 2024, subject to the payment of amounts into the
3County and Mass Transit District Fund, the Local Government
4Tax Fund, the Build Illinois Fund, the McCormick Place
5Expansion Project Fund, the Illinois Tax Increment Fund, the
6Energy Infrastructure 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 48% of the net revenue realized from
10the taxes imposed on motor fuel and gasohol. Beginning July 1,
112024 and until July 1, 2025, 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,
15the Energy Infrastructure Fund, and the Tax Compliance and
16Administration Fund as provided in this Section, the
17Department shall pay each month into the Road Fund the amount
18estimated to represent 64% of the net revenue realized from
19the taxes imposed on motor fuel and gasohol. Beginning on July
201, 2025, subject to the payment of amounts into the County and
21Mass Transit District Fund, the Local Government Tax Fund, the
22Build Illinois Fund, the McCormick Place Expansion Project
23Fund, the Illinois Tax Increment Fund, the Energy
24Infrastructure Fund, and the Tax Compliance and Administration
25Fund as provided in this Section, the Department shall pay
26each month into the Road Fund the amount estimated to

 

 

10200HB1539sam001- 281 -LRB102 03555 HLH 39048 a

1represent 80% of the net revenue realized from the taxes
2imposed on motor fuel and gasohol. As used in this paragraph
3"motor fuel" has the meaning given to that term in Section 1.1
4of the Motor Fuel Tax Law Act, and "gasohol" has the meaning
5given to that term in Section 3-40 of the Use Tax Act.
6    Of the remainder of the moneys received by the Department
7pursuant to this Act, 75% shall be paid into the General
8Revenue Fund of the State Treasury and 25% shall be reserved in
9a special account and used only for the transfer to the Common
10School Fund as part of the monthly transfer from the General
11Revenue Fund in accordance with Section 8a of the State
12Finance Act.
13    The Department may, upon separate written notice to a
14taxpayer, require the taxpayer to prepare and file with the
15Department on a form prescribed by the Department within not
16less than 60 days after receipt of the notice an annual
17information return for the tax year specified in the notice.
18Such annual return to the Department shall include a statement
19of gross receipts as shown by the taxpayer's last Federal
20income tax return. If the total receipts of the business as
21reported in the Federal income tax return do not agree with the
22gross receipts reported to the Department of Revenue for the
23same period, the taxpayer shall attach to his annual return a
24schedule showing a reconciliation of the 2 amounts and the
25reasons for the difference. The taxpayer's annual return to
26the Department shall also disclose the cost of goods sold by

 

 

10200HB1539sam001- 282 -LRB102 03555 HLH 39048 a

1the taxpayer during the year covered by such return, opening
2and closing inventories of such goods for such year, cost of
3goods used from stock or taken from stock and given away by the
4taxpayer during such year, pay roll information of the
5taxpayer's business during such year and any additional
6reasonable information which the Department deems would be
7helpful in determining the accuracy of the monthly, quarterly
8or annual returns filed by such taxpayer as hereinbefore
9provided for in this Section.
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

 

 

10200HB1539sam001- 283 -LRB102 03555 HLH 39048 a

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 foregoing portion of this Section concerning the
6filing of an annual information return shall not apply to a
7serviceman who is not required to file an income tax return
8with the United States Government.
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, it shall be
21permissible for manufacturers, importers and wholesalers whose
22products are sold by numerous servicemen in Illinois, and who
23wish to do so, to assume the responsibility for accounting and
24paying to the Department all tax accruing under this Act with
25respect to such sales, if the servicemen who are affected do
26not make written objection to the Department to this

 

 

10200HB1539sam001- 284 -LRB102 03555 HLH 39048 a

1arrangement.
2(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
3100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
415, Section 15-20, eff. 6-5-19; 101-10, Article 25, Section
525-115, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
66-28-19; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
 
7    Section 60-30. The Retailers' Occupation Tax Act is
8amended by changing Sections 2-10 and 3 as follows:
 
9    (35 ILCS 120/2-10)
10    Sec. 2-10. Rate of tax. Unless otherwise provided in this
11Section, the tax imposed by this Act is at the rate of 6.25% of
12gross receipts from sales of tangible personal property made
13in the course of business.
14    Beginning on July 1, 2000 and through December 31, 2000,
15with respect to motor fuel, as defined in Section 1.1 of the
16Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
17the Use Tax Act, the tax is imposed at the rate of 1.25%.
18    Beginning on August 6, 2010 through August 15, 2010, with
19respect to sales tax holiday items as defined in Section 2-8 of
20this Act, the tax is imposed at the rate of 1.25%.
21    Within 14 days after the effective date of this amendatory
22Act of the 91st General Assembly, each retailer of motor fuel
23and gasohol shall cause the following notice to be posted in a
24prominently visible place on each retail dispensing device

 

 

10200HB1539sam001- 285 -LRB102 03555 HLH 39048 a

1that is used to dispense motor fuel or gasohol in the State of
2Illinois: "As of July 1, 2000, the State of Illinois has
3eliminated the State's share of sales tax on motor fuel and
4gasohol through December 31, 2000. The price on this pump
5should reflect the elimination of the tax." The notice shall
6be printed in bold print on a sign that is no smaller than 4
7inches by 8 inches. The sign shall be clearly visible to
8customers. Any retailer who fails to post or maintain a
9required sign through December 31, 2000 is guilty of a petty
10offense for which the fine shall be $500 per day per each
11retail premises where a violation occurs.
12    With respect to gasohol, as defined in the Use Tax Act, the
13tax imposed by this Act applies to (i) 70% of the proceeds of
14sales made on or after January 1, 1990, and before July 1,
152003, (ii) 80% of the proceeds of sales made on or after July
161, 2003 and on or before July 1, 2017, and (iii) 100% of the
17proceeds of sales made thereafter. If, at any time, however,
18the tax under this Act on sales of gasohol, as defined in the
19Use Tax Act, is imposed at the rate of 1.25%, then the tax
20imposed by this Act applies to 100% of the proceeds of sales of
21gasohol made during that time.
22    With respect to majority blended ethanol fuel, as defined
23in the Use Tax Act, the tax imposed by this Act does not apply
24to the proceeds of sales made on or after July 1, 2003 and on
25or before December 31, 2023 but applies to 100% of the proceeds
26of sales made thereafter.

 

 

10200HB1539sam001- 286 -LRB102 03555 HLH 39048 a

1    With respect to biodiesel blends, as defined in the Use
2Tax Act, with no less than 1% and no more than 10% biodiesel,
3the tax imposed by this Act applies to (i) 80% of the proceeds
4of sales made on or after July 1, 2003 and on or before
5December 31, 2018 and (ii) 100% of the proceeds of sales made
6thereafter. If, at any time, however, the tax under this Act on
7sales of biodiesel blends, as defined in the Use Tax Act, with
8no less than 1% and no more than 10% biodiesel is imposed at
9the rate of 1.25%, then the tax imposed by this Act applies to
10100% of the proceeds of sales of biodiesel blends with no less
11than 1% and no more than 10% biodiesel made during that time.
12    With respect to 100% biodiesel, as defined in the Use Tax
13Act, and biodiesel blends, as defined in the Use Tax Act, with
14more than 10% but no more than 99% biodiesel, the tax imposed
15by this Act does not apply to the proceeds of sales made on or
16after July 1, 2003 and on or before December 31, 2023 but
17applies to 100% of the proceeds of sales made thereafter.
18    Until July 1, 2022 and beginning again on July 1, 2023,
19with With respect to food for human consumption that is to be
20consumed 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 1%.
24Beginning July 1, 2022 and until July 1, 2023, with respect to
25food for human consumption that is to be consumed off the
26premises where it is sold (other than alcoholic beverages,

 

 

10200HB1539sam001- 287 -LRB102 03555 HLH 39048 a

1food consisting of or infused with adult use cannabis, soft
2drinks, and food that has been prepared for immediate
3consumption), the tax is imposed at the rate of 0%.
4    With respect to and prescription and nonprescription
5medicines, drugs, medical appliances, products classified as
6Class III medical devices by the United States Food and Drug
7Administration that are used for cancer treatment pursuant to
8a prescription, as well as any accessories and components
9related to those devices, modifications to a motor vehicle for
10the purpose of rendering it usable by a person with a
11disability, and insulin, blood sugar testing materials,
12syringes, and needles used by human diabetics, the tax is
13imposed at the rate of 1%. For the purposes of this Section,
14until September 1, 2009: the term "soft drinks" means any
15complete, finished, ready-to-use, non-alcoholic drink, whether
16carbonated or not, including but not limited to soda water,
17cola, fruit juice, vegetable juice, carbonated water, and all
18other preparations commonly known as soft drinks of whatever
19kind or description that are contained in any closed or sealed
20bottle, can, carton, or container, regardless of size; but
21"soft drinks" does not include coffee, tea, non-carbonated
22water, infant formula, milk or milk products as defined in the
23Grade A Pasteurized Milk and Milk Products Act, or drinks
24containing 50% or more natural fruit or vegetable juice.
25    Notwithstanding any other provisions of this Act,
26beginning September 1, 2009, "soft drinks" means non-alcoholic

 

 

10200HB1539sam001- 288 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 289 -LRB102 03555 HLH 39048 a

1beginning September 1, 2009, "nonprescription medicines and
2drugs" does not include grooming and hygiene products. For
3purposes of this Section, "grooming and hygiene products"
4includes, but is not limited to, soaps and cleaning solutions,
5shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
6lotions and screens, unless those products are available by
7prescription only, regardless of whether the products meet the
8definition of "over-the-counter-drugs". For the purposes of
9this paragraph, "over-the-counter-drug" means a drug for human
10use that contains a label that identifies the product as a drug
11as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
12label includes:
13        (A) A "Drug Facts" panel; or
14        (B) A statement of the "active ingredient(s)" with a
15    list of those ingredients contained in the compound,
16    substance or preparation.
17    Beginning on the effective date of this amendatory Act of
18the 98th General Assembly, "prescription and nonprescription
19medicines and drugs" includes medical cannabis purchased from
20a registered dispensing organization under the Compassionate
21Use of Medical Cannabis Program Act.
22    As used in this Section, "adult use cannabis" means
23cannabis subject to tax under the Cannabis Cultivation
24Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
25and does not include cannabis subject to tax under the
26Compassionate Use of Medical Cannabis Program Act.

 

 

10200HB1539sam001- 290 -LRB102 03555 HLH 39048 a

1(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
2102-4, eff. 4-27-21.)
 
3    (35 ILCS 120/3)  (from Ch. 120, par. 442)
4    Sec. 3. Except as provided in this Section, on or before
5the twentieth day of each calendar month, every person engaged
6in the business of selling tangible personal property at
7retail in this State during the preceding calendar month shall
8file a return with the Department, stating:
9        1. The name of the seller;
10        2. His residence address and the address of his
11    principal place of business and the address of the
12    principal place of business (if that is a different
13    address) from which he engages in the business of selling
14    tangible personal property at retail in this State;
15        3. Total amount of receipts received by him during the
16    preceding calendar month or quarter, as the case may be,
17    from sales of tangible personal property, and from
18    services furnished, by him during such preceding calendar
19    month or quarter;
20        4. Total amount received by him during the preceding
21    calendar month or quarter on charge and time sales of
22    tangible personal property, and from services furnished,
23    by him prior to the month or quarter for which the return
24    is filed;
25        5. Deductions allowed by law;

 

 

10200HB1539sam001- 291 -LRB102 03555 HLH 39048 a

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

 

 

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1to be registered with an agency of this State, with respect to
2retailers whose annual gross receipts average $20,000 or more,
3all returns required to be filed pursuant to this Act shall be
4filed electronically. Retailers who demonstrate that they do
5not have access to the Internet or demonstrate hardship in
6filing electronically 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

 

 

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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
4Purchaser Credit reported on annual returns due on or after
5January 1, 2005 will be disallowed for periods prior to
6September 1, 2004. No Manufacturer's Purchase Credit may be
7used after September 30, 2003 through August 31, 2004 to
8satisfy any tax liability imposed under this Act, including
9any audit liability.
10    The Department may require returns to be filed on a
11quarterly basis. If so required, a return for each calendar
12quarter shall be filed on or before the twentieth day of the
13calendar month following the end of such calendar quarter. The
14taxpayer shall also file a return with the Department for each
15of the first two months of each calendar quarter, on or before
16the twentieth day of the following calendar month, stating:
17        1. The name of the seller;
18        2. The address of the principal place of business from
19    which he engages in the business of selling tangible
20    personal property at retail in this State;
21        3. The total amount of taxable receipts received by
22    him during the preceding calendar month from sales of
23    tangible personal property by him during such preceding
24    calendar month, including receipts from charge and time
25    sales, but less all deductions allowed by law;
26        4. The amount of credit provided in Section 2d of this

 

 

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

 

 

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

 

 

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1retailer is unable to receive the sales information by
2electronic means, the distributor, importing distributor, or
3manufacturer shall furnish the sales information by personal
4delivery or by mail. For purposes of this paragraph, the term
5"electronic means" includes, but is not limited to, the use of
6a secure Internet website, e-mail, or facsimile.
7    If a total amount of less than $1 is payable, refundable or
8creditable, such amount shall be disregarded if it is less
9than 50 cents and shall be increased to $1 if it is 50 cents or
10more.
11    Notwithstanding any other provision of this Act to the
12contrary, retailers subject to tax on cannabis shall file all
13cannabis tax returns and shall make all cannabis tax payments
14by electronic means in the manner and form required by the
15Department.
16    Beginning October 1, 1993, a taxpayer who has an average
17monthly tax liability of $150,000 or more shall make all
18payments required by rules of the Department by electronic
19funds transfer. Beginning October 1, 1994, a taxpayer who has
20an average monthly tax liability of $100,000 or more shall
21make all payments required by rules of the Department by
22electronic funds transfer. Beginning October 1, 1995, a
23taxpayer who has an average monthly tax liability of $50,000
24or more shall make all payments required by rules of the
25Department by electronic funds transfer. Beginning October 1,
262000, a taxpayer who has an annual tax liability of $200,000 or

 

 

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

 

 

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

 

 

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

 

 

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1transfers more than one aircraft, watercraft, motor vehicle or
2trailer to another aircraft, watercraft, motor vehicle
3retailer or trailer retailer for the purpose of resale or (ii)
4a retailer of aircraft, watercraft, motor vehicles, or
5trailers transfers more than one aircraft, watercraft, motor
6vehicle, or trailer to a purchaser for use as a qualifying
7rolling stock as provided in Section 2-5 of this Act, then that
8seller may report the transfer of all aircraft, watercraft,
9motor vehicles or trailers involved in that transaction to the
10Department on the same uniform invoice-transaction reporting
11return form. For purposes of this Section, "watercraft" means
12a Class 2, Class 3, or Class 4 watercraft as defined in Section
133-2 of the Boat Registration and Safety Act, a personal
14watercraft, or any boat equipped with an inboard motor.
15    In addition, with respect to motor vehicles, watercraft,
16aircraft, and trailers that are required to be registered with
17an agency of this State, every person who is engaged in the
18business of leasing or renting such items and who, in
19connection with such business, sells any such item to a
20retailer for the purpose of resale is, notwithstanding any
21other provision of this Section to the contrary, authorized to
22meet the return-filing requirement of this Act by reporting
23the transfer of all the aircraft, watercraft, motor vehicles,
24or trailers transferred for resale during a month to the
25Department on the same uniform invoice-transaction reporting
26return form on or before the 20th of the month following the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1subdivision 5 of his monthly or quarterly return, as the case
2may be, in case the seller had theretofore included the
3receipts from the sale of such tangible personal property in a
4return filed by him and had paid the tax imposed by this Act
5with respect to such receipts.
6    Where the seller is a corporation, the return filed on
7behalf of such corporation shall be signed by the president,
8vice-president, secretary or treasurer or by the properly
9accredited agent of such corporation.
10    Where the seller is a limited liability company, the
11return filed on behalf of the limited liability company shall
12be signed by a manager, member, or properly accredited agent
13of the limited liability company.
14    Except as provided in this Section, the retailer filing
15the return under this Section shall, at the time of filing such
16return, pay to the Department the amount of tax imposed by this
17Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
18on and after January 1, 1990, or $5 per calendar year,
19whichever is greater, which is allowed to reimburse the
20retailer for the expenses incurred in keeping records,
21preparing and filing returns, remitting the tax and supplying
22data to the Department on request. On and after January 1,
232021, a certified service provider, as defined in the Leveling
24the Playing Field for Illinois Retail Act, filing the return
25under this Section on behalf of a remote retailer shall, at the
26time of such return, pay to the Department the amount of tax

 

 

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1imposed by this Act less a discount of 1.75%. A remote retailer
2using a certified service provider to file a return on its
3behalf, as provided in the Leveling the Playing Field for
4Illinois Retail Act, is not eligible for the discount. When
5determining the discount allowed under this Section, retailers
6shall include the amount of tax that would have been due at the
71% rate but for the 0% rate imposed under this amendatory Act
8of the 102nd General Assembly. The discount under this Section
9is not allowed for the 1.25% portion of taxes paid on aviation
10fuel that is subject to the revenue use requirements of 49
11U.S.C. 47107(b) and 49 U.S.C. 47133. Any prepayment made
12pursuant to Section 2d of this Act shall be included in the
13amount on which such 2.1% or 1.75% discount is computed. In the
14case of retailers who report and pay the tax on a transaction
15by transaction basis, as provided in this Section, such
16discount shall be taken with each such tax remittance instead
17of when such retailer files his periodic return. The discount
18allowed under this Section is allowed only for returns that
19are filed in the manner required by this Act. The Department
20may disallow the discount for retailers whose certificate of
21registration is revoked at the time the return is filed, but
22only if the Department's decision to revoke the certificate of
23registration has become final.
24    Before October 1, 2000, if the taxpayer's average monthly
25tax liability to the Department under this Act, the Use Tax
26Act, the Service Occupation Tax Act, and the Service Use Tax

 

 

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

 

 

10200HB1539sam001- 308 -LRB102 03555 HLH 39048 a

1in such 4 quarter period). If the month during which such tax
2liability is incurred begins on or after January 1, 1985 and
3prior to January 1, 1987, each payment shall be in an amount
4equal to 22.5% of the taxpayer's actual liability for the
5month or 27.5% of the taxpayer's liability for the same
6calendar month of the preceding year. If the month during
7which such tax liability is incurred begins on or after
8January 1, 1987 and prior to January 1, 1988, each payment
9shall be in an amount equal to 22.5% of the taxpayer's actual
10liability for the month or 26.25% of the taxpayer's liability
11for the same calendar month of the preceding year. If the month
12during which such tax liability is incurred begins on or after
13January 1, 1988, and prior to January 1, 1989, or begins on or
14after January 1, 1996, each payment shall be in an amount equal
15to 22.5% of the taxpayer's actual liability for the month or
1625% of the taxpayer's liability for the same calendar month of
17the preceding year. If the month during which such tax
18liability is incurred begins on or after January 1, 1989, and
19prior to January 1, 1996, each payment shall be in an amount
20equal to 22.5% of the taxpayer's actual liability for the
21month or 25% of the taxpayer's liability for the same calendar
22month of the preceding year or 100% of the taxpayer's actual
23liability for the quarter monthly reporting period. The amount
24of such quarter monthly payments shall be credited against the
25final tax liability of the taxpayer's return for that month.
26Before October 1, 2000, once applicable, the requirement of

 

 

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

 

 

10200HB1539sam001- 310 -LRB102 03555 HLH 39048 a

1calendar quarter period is less than $20,000. However, if a
2taxpayer can show the Department that a substantial change in
3the taxpayer's business has occurred which causes the taxpayer
4to anticipate that his average monthly tax liability for the
5reasonably foreseeable future will fall below the $20,000
6threshold stated above, then such taxpayer may petition the
7Department for a change in such taxpayer's reporting status.
8The Department shall change such taxpayer's reporting status
9unless it finds that such change is seasonal in nature and not
10likely to be long term. Quarter monthly payment status shall
11be determined under this paragraph as if the rate reduction to
120% in this amendatory Act of the 102nd General Assembly on food
13for human consumption that is to be consumed off the premises
14where it is sold (other than alcoholic beverages, food
15consisting of or infused with adult use cannabis, soft drinks,
16and food that has been prepared for immediate consumption) had
17not occurred. For quarter monthly payments due under this
18paragraph on or after July 1, 2023 and through June 30, 2024,
19"25% of the taxpayer's liability for the same calendar month
20of the preceding year" shall be determined as if the rate
21reduction to 0% in this amendatory Act of the 102nd General
22Assembly had not occurred. If any such quarter monthly payment
23is not paid at the time or in the amount required by this
24Section, then the taxpayer shall be liable for penalties and
25interest on the difference between the minimum amount due as a
26payment and the amount of such quarter monthly payment

 

 

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1actually and timely paid, except insofar as the taxpayer has
2previously made payments for that month to the Department in
3excess of the minimum payments previously due as provided in
4this Section. The Department shall make reasonable rules and
5regulations to govern the quarter monthly payment amount and
6quarter monthly payment dates for taxpayers who file on other
7than a calendar monthly basis.
8    The provisions of this paragraph apply before October 1,
92001. Without regard to whether a taxpayer is required to make
10quarter monthly payments as specified above, any taxpayer who
11is required by Section 2d of this Act to collect and remit
12prepaid taxes and has collected prepaid taxes which average in
13excess of $25,000 per month during the preceding 2 complete
14calendar quarters, shall file a return with the Department as
15required by Section 2f and shall make payments to the
16Department on or before the 7th, 15th, 22nd and last day of the
17month during which such liability is incurred. If the month
18during which such tax liability is incurred began prior to
19September 1, 1985 (the effective date of Public Act 84-221),
20each payment shall be in an amount not less than 22.5% of the
21taxpayer's actual liability under Section 2d. If the month
22during which such tax liability is incurred begins on or after
23January 1, 1986, each payment shall be in an amount equal to
2422.5% of the taxpayer's actual liability for the month or
2527.5% of the taxpayer's liability for the same calendar month
26of the preceding calendar year. If the month during which such

 

 

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1tax liability is incurred begins on or after January 1, 1987,
2each payment shall be in an amount equal to 22.5% of the
3taxpayer's actual liability for the month or 26.25% of the
4taxpayer's liability for the same calendar month of the
5preceding year. The amount of such quarter monthly payments
6shall be credited against the final tax liability of the
7taxpayer's return for that month filed under this Section or
8Section 2f, as the case may be. Once applicable, the
9requirement of the making of quarter monthly payments to the
10Department pursuant to this paragraph shall continue until
11such taxpayer's average monthly prepaid tax collections during
12the preceding 2 complete calendar quarters is $25,000 or less.
13If any such quarter monthly payment is not paid at the time or
14in the amount required, the taxpayer shall be liable for
15penalties and interest on such difference, except insofar as
16the taxpayer has previously made payments for that month in
17excess of the minimum payments previously due.
18    The provisions of this paragraph apply on and after
19October 1, 2001. Without regard to whether a taxpayer is
20required to make quarter monthly payments as specified above,
21any taxpayer who is required by Section 2d of this Act to
22collect and remit prepaid taxes and has collected prepaid
23taxes that average in excess of $20,000 per month during the
24preceding 4 complete calendar quarters shall file a return
25with the Department as required by Section 2f and shall make
26payments to the Department on or before the 7th, 15th, 22nd and

 

 

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1last day of the month during which the liability is incurred.
2Each payment shall be in an amount equal to 22.5% of the
3taxpayer's actual liability for the month or 25% of the
4taxpayer's liability for the same calendar month of the
5preceding year. The amount of the quarter monthly payments
6shall be credited against the final tax liability of the
7taxpayer's return for that month filed under this Section or
8Section 2f, as the case may be. Once applicable, the
9requirement of the making of quarter monthly payments to the
10Department pursuant to this paragraph shall continue until the
11taxpayer's average monthly prepaid tax collections during the
12preceding 4 complete calendar quarters (excluding the month of
13highest liability and the month of lowest liability) is less
14than $19,000 or until such taxpayer's average monthly
15liability to the Department as computed for each calendar
16quarter of the 4 preceding complete calendar quarters is less
17than $20,000. If any such quarter monthly payment is not paid
18at the time or in the amount required, the taxpayer shall be
19liable for penalties and interest on such difference, except
20insofar as the taxpayer has previously made payments for that
21month in excess of the minimum payments previously due.
22    If any payment provided for in this Section exceeds the
23taxpayer's liabilities under this Act, the Use Tax Act, the
24Service Occupation Tax Act and the Service Use Tax Act, as
25shown on an original monthly return, the Department shall, if
26requested by the taxpayer, issue to the taxpayer a credit

 

 

10200HB1539sam001- 314 -LRB102 03555 HLH 39048 a

1memorandum no later than 30 days after the date of payment. The
2credit evidenced by such credit memorandum may be assigned by
3the taxpayer to a similar taxpayer under this Act, the Use Tax
4Act, the Service Occupation Tax Act or the Service Use Tax Act,
5in accordance with reasonable rules and regulations to be
6prescribed by the Department. If no such request is made, the
7taxpayer may credit such excess payment against tax liability
8subsequently to be remitted to the Department under this Act,
9the Use Tax Act, the Service Occupation Tax Act or the Service
10Use Tax Act, in accordance with reasonable rules and
11regulations prescribed by the Department. If the Department
12subsequently determined that all or any part of the credit
13taken was not actually due to the taxpayer, the taxpayer's
142.1% and 1.75% vendor's discount shall be reduced by 2.1% or
151.75% of the difference between the credit taken and that
16actually due, and that taxpayer shall be liable for penalties
17and interest on such difference.
18    If a retailer of motor fuel is entitled to a credit under
19Section 2d of this Act which exceeds the taxpayer's liability
20to the Department under this Act for the month for which the
21taxpayer is filing a return, the Department shall issue the
22taxpayer a credit memorandum for the excess.
23    Beginning January 1, 1990, each month the Department shall
24pay into the Local Government Tax Fund, a special fund in the
25State treasury which is hereby created, the net revenue
26realized for the preceding month from the 1% tax imposed under

 

 

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1this Act.
2    Beginning January 1, 1990, each month the Department shall
3pay into the County and Mass Transit District Fund, a special
4fund in the State treasury which is hereby created, 4% of the
5net revenue realized for the preceding month from the 6.25%
6general rate other than aviation fuel sold on or after
7December 1, 2019. This exception for aviation fuel only
8applies for so long as the revenue use requirements of 49
9U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
10    Beginning August 1, 2000, each month the Department shall
11pay into the County and Mass Transit District Fund 20% of the
12net revenue realized for the preceding month from the 1.25%
13rate on the selling price of motor fuel and gasohol. Beginning
14September 1, 2010, each month the Department shall pay into
15the County and Mass Transit District Fund 20% of the net
16revenue realized for the preceding month from the 1.25% rate
17on the selling price of sales tax holiday items.
18    Beginning January 1, 1990, each month the Department shall
19pay into the Local Government Tax Fund 16% of the net revenue
20realized for the preceding month from the 6.25% general rate
21on the selling price 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    For aviation fuel sold on or after December 1, 2019, each

 

 

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1month the Department shall pay into the State Aviation Program
2Fund 20% of the net revenue realized for the preceding month
3from the 6.25% general rate on the selling price of aviation
4fuel, less an amount estimated by the Department to be
5required for refunds of the 20% portion of the tax on aviation
6fuel under this Act, which amount shall be deposited into the
7Aviation Fuel Sales Tax Refund Fund. The Department shall only
8pay moneys into the State Aviation Program Fund and the
9Aviation Fuel Sales Tax Refund Fund under this Act for so long
10as the revenue use requirements of 49 U.S.C. 47107(b) and 49
11U.S.C. 47133 are binding on the State.
12    Beginning August 1, 2000, each month the Department shall
13pay into the Local Government Tax Fund 80% of the net revenue
14realized for the preceding month from the 1.25% rate on the
15selling price of motor fuel and gasohol. Beginning September
161, 2010, each month the Department shall pay into the Local
17Government Tax Fund 80% of the net revenue realized for the
18preceding month from the 1.25% rate on the selling price of
19sales tax holiday items.
20    Beginning October 1, 2009, each month the Department shall
21pay into the Capital Projects Fund an amount that is equal to
22an amount estimated by the Department to represent 80% of the
23net revenue realized for the preceding month from the sale of
24candy, grooming and hygiene products, and soft drinks that had
25been taxed at a rate of 1% prior to September 1, 2009 but that
26are now taxed at 6.25%.

 

 

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1    Beginning July 1, 2011, each month the Department shall
2pay into the Clean Air Act Permit Fund 80% of the net revenue
3realized for the preceding month from the 6.25% general rate
4on the selling price of sorbents used in Illinois in the
5process of sorbent injection as used to comply with the
6Environmental Protection Act or the federal Clean Air Act, but
7the total payment into the Clean Air Act Permit Fund under this
8Act and the Use Tax Act shall not exceed $2,000,000 in any
9fiscal year.
10    Beginning July 1, 2013, each month the Department shall
11pay into the Underground Storage Tank Fund from the proceeds
12collected under this Act, the Use Tax Act, the Service Use Tax
13Act, and the Service Occupation Tax Act an amount equal to the
14average monthly deficit in the Underground Storage Tank Fund
15during the prior year, as certified annually by the Illinois
16Environmental Protection Agency, but the total payment into
17the Underground Storage Tank Fund under this Act, the Use Tax
18Act, the Service Use Tax Act, and the Service Occupation Tax
19Act shall not exceed $18,000,000 in any State fiscal year. As
20used in this paragraph, the "average monthly deficit" shall be
21equal to the difference between the average monthly claims for
22payment by the fund and the average monthly revenues deposited
23into the fund, excluding payments made pursuant to this
24paragraph.
25    Beginning July 1, 2015, of the remainder of the moneys
26received by the Department under the Use Tax Act, the Service

 

 

10200HB1539sam001- 318 -LRB102 03555 HLH 39048 a

1Use Tax Act, the Service Occupation Tax Act, and this Act, each
2month the Department shall deposit $500,000 into the State
3Crime Laboratory Fund.
4    Of the remainder of the moneys received by the Department
5pursuant to this Act, (a) 1.75% thereof shall be paid into the
6Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
7and after July 1, 1989, 3.8% thereof shall be paid into the
8Build Illinois Fund; provided, however, that if in any fiscal
9year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
10may be, of the moneys received by the Department and required
11to be paid into the Build Illinois Fund pursuant to this Act,
12Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
13Act, and Section 9 of the Service Occupation Tax Act, such Acts
14being hereinafter called the "Tax Acts" and such aggregate of
152.2% or 3.8%, as the case may be, of moneys being hereinafter
16called the "Tax Act Amount", and (2) the amount transferred to
17the Build Illinois Fund from the State and Local Sales Tax
18Reform Fund shall be less than the Annual Specified Amount (as
19hereinafter defined), an amount equal to the difference shall
20be immediately paid into the Build Illinois Fund from other
21moneys received by the Department pursuant to the Tax Acts;
22the "Annual Specified Amount" means the amounts specified
23below for fiscal years 1986 through 1993:
24Fiscal YearAnnual Specified Amount
251986$54,800,000
261987$76,650,000

 

 

10200HB1539sam001- 319 -LRB102 03555 HLH 39048 a

11988$80,480,000
21989$88,510,000
31990$115,330,000
41991$145,470,000
51992$182,730,000
61993$206,520,000;
7and means the Certified Annual Debt Service Requirement (as
8defined in Section 13 of the Build Illinois Bond Act) or the
9Tax Act Amount, whichever is greater, for fiscal year 1994 and
10each fiscal year thereafter; and further provided, that if on
11the last business day of any month the sum of (1) the Tax Act
12Amount required to be deposited into the Build Illinois Bond
13Account in the Build Illinois Fund during such month and (2)
14the amount transferred to the Build Illinois Fund from the
15State and Local Sales Tax Reform Fund shall have been less than
161/12 of the Annual Specified Amount, an amount equal to the
17difference shall be immediately paid into the Build Illinois
18Fund from other moneys received by the Department pursuant to
19the Tax Acts; and, further provided, that in no event shall the
20payments required under the preceding proviso result in
21aggregate payments into the Build Illinois Fund pursuant to
22this clause (b) for any fiscal year in excess of the greater of
23(i) the Tax Act Amount or (ii) the Annual Specified Amount for
24such fiscal year. The amounts payable into the Build Illinois
25Fund under clause (b) of the first sentence in this paragraph
26shall be payable only until such time as the aggregate amount

 

 

10200HB1539sam001- 320 -LRB102 03555 HLH 39048 a

1on deposit under each trust indenture securing Bonds issued
2and outstanding pursuant to the Build Illinois Bond Act is
3sufficient, taking into account any future investment income,
4to fully provide, in accordance with such indenture, for the
5defeasance of or the payment of the principal of, premium, if
6any, and interest on the Bonds secured by such indenture and on
7any Bonds expected to be issued thereafter and all fees and
8costs payable with respect thereto, all as certified by the
9Director of the Bureau of the Budget (now Governor's Office of
10Management and Budget). If on the last business day of any
11month in which Bonds are outstanding pursuant to the Build
12Illinois Bond Act, the aggregate of moneys deposited in the
13Build Illinois Bond Account in the Build Illinois Fund in such
14month shall be less than the amount required to be transferred
15in such month from the Build Illinois Bond Account to the Build
16Illinois Bond Retirement and Interest Fund pursuant to Section
1713 of the Build Illinois Bond Act, an amount equal to such
18deficiency shall be immediately paid from other moneys
19received by the Department pursuant to the Tax Acts to the
20Build Illinois Fund; provided, however, that any amounts paid
21to the Build Illinois Fund in any fiscal year pursuant to this
22sentence shall be deemed to constitute payments pursuant to
23clause (b) of the first sentence of this paragraph and shall
24reduce the amount otherwise payable for such fiscal year
25pursuant to that clause (b). The moneys received by the
26Department pursuant to this Act and required to be deposited

 

 

10200HB1539sam001- 321 -LRB102 03555 HLH 39048 a

1into the Build Illinois Fund are subject to the pledge, claim
2and charge set forth in Section 12 of the Build Illinois Bond
3Act.
4    Subject to payment of amounts into the Build Illinois Fund
5as provided in the preceding paragraph or in any amendment
6thereto hereafter enacted, the following specified monthly
7installment of the amount requested in the certificate of the
8Chairman of the Metropolitan Pier and Exposition Authority
9provided under Section 8.25f of the State Finance Act, but not
10in excess of sums designated as "Total Deposit", shall be
11deposited in the aggregate from collections under Section 9 of
12the Use Tax Act, Section 9 of the Service Use Tax Act, Section
139 of the Service Occupation Tax Act, and Section 3 of the
14Retailers' Occupation Tax Act into the McCormick Place
15Expansion Project Fund in the specified fiscal years.
16Fiscal YearTotal Deposit
171993         $0
181994 53,000,000
191995 58,000,000
201996 61,000,000
211997 64,000,000
221998 68,000,000
231999 71,000,000
242000 75,000,000
252001 80,000,000
262002 93,000,000

 

 

10200HB1539sam001- 322 -LRB102 03555 HLH 39048 a

12003 99,000,000
22004103,000,000
32005108,000,000
42006113,000,000
52007119,000,000
62008126,000,000
72009132,000,000
82010139,000,000
92011146,000,000
102012153,000,000
112013161,000,000
122014170,000,000
132015179,000,000
142016189,000,000
152017199,000,000
162018210,000,000
172019221,000,000
182020233,000,000
192021300,000,000
202022300,000,000
212023300,000,000
222024 300,000,000
232025 300,000,000
242026 300,000,000
252027 375,000,000
262028 375,000,000

 

 

10200HB1539sam001- 323 -LRB102 03555 HLH 39048 a

12029 375,000,000
22030 375,000,000
32031 375,000,000
42032 375,000,000
52033375,000,000
62034375,000,000
72035375,000,000
82036450,000,000
9and
10each fiscal year
11thereafter that bonds
12are outstanding under
13Section 13.2 of the
14Metropolitan Pier and
15Exposition Authority Act,
16but not after fiscal year 2060.
17    Beginning July 20, 1993 and in each month of each fiscal
18year thereafter, one-eighth of the amount requested in the
19certificate of the Chairman of the Metropolitan Pier and
20Exposition Authority for that fiscal year, less the amount
21deposited into the McCormick Place Expansion Project Fund by
22the State Treasurer in the respective month under subsection
23(g) of Section 13 of the Metropolitan Pier and Exposition
24Authority Act, plus cumulative deficiencies in the deposits
25required under this Section for previous months and years,
26shall be deposited into the McCormick Place Expansion Project

 

 

10200HB1539sam001- 324 -LRB102 03555 HLH 39048 a

1Fund, until the full amount requested for the fiscal year, but
2not in excess of the amount specified above as "Total
3Deposit", has been deposited.
4    Subject to payment of amounts into the Capital Projects
5Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
6and the McCormick Place Expansion Project Fund pursuant to the
7preceding paragraphs or in any amendments thereto hereafter
8enacted, for aviation fuel sold on or after December 1, 2019,
9the Department shall each month deposit into the Aviation Fuel
10Sales Tax Refund Fund an amount estimated by the Department to
11be required for refunds of the 80% portion of the tax on
12aviation fuel under this Act. The Department shall only
13deposit moneys into the Aviation Fuel Sales Tax Refund Fund
14under this paragraph for so long as the revenue use
15requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
16binding on the State.
17    Subject to payment of amounts into the Build Illinois Fund
18and the McCormick Place Expansion Project Fund pursuant to the
19preceding paragraphs or in any amendments thereto hereafter
20enacted, beginning July 1, 1993 and ending on September 30,
212013, the Department shall each month pay into the Illinois
22Tax Increment Fund 0.27% of 80% of the net revenue realized for
23the preceding month from the 6.25% general rate on the selling
24price of tangible personal property.
25    Subject to payment of amounts into the Build Illinois Fund
26and the McCormick Place Expansion Project Fund pursuant to the

 

 

10200HB1539sam001- 325 -LRB102 03555 HLH 39048 a

1preceding paragraphs or in any amendments thereto hereafter
2enacted, beginning with the receipt of the first report of
3taxes paid by an eligible business and continuing for a
425-year period, the Department shall each month pay into the
5Energy Infrastructure Fund 80% of the net revenue realized
6from the 6.25% general rate on the selling price of
7Illinois-mined coal that was sold to an eligible business. For
8purposes of this paragraph, the term "eligible business" means
9a new electric generating facility certified pursuant to
10Section 605-332 of the Department of Commerce and Economic
11Opportunity Law of the Civil Administrative Code of Illinois.
12    Subject to payment of amounts into the Build Illinois
13Fund, the McCormick Place Expansion Project Fund, the Illinois
14Tax Increment Fund, and the Energy Infrastructure Fund
15pursuant to the preceding paragraphs or in any amendments to
16this Section hereafter enacted, beginning on the first day of
17the first calendar month to occur on or after August 26, 2014
18(the effective date of Public Act 98-1098), each month, from
19the collections made under Section 9 of the Use Tax Act,
20Section 9 of the Service Use Tax Act, Section 9 of the Service
21Occupation Tax Act, and Section 3 of the Retailers' Occupation
22Tax Act, the Department shall pay into the Tax Compliance and
23Administration Fund, to be used, subject to appropriation, to
24fund additional auditors and compliance personnel at the
25Department of Revenue, an amount equal to 1/12 of 5% of 80% of
26the cash receipts collected during the preceding fiscal year

 

 

10200HB1539sam001- 326 -LRB102 03555 HLH 39048 a

1by the Audit Bureau of the Department under the Use Tax Act,
2the Service Use Tax Act, the Service Occupation Tax Act, the
3Retailers' Occupation Tax Act, and associated local occupation
4and use taxes administered 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, the Energy Infrastructure Fund, and the
8Tax Compliance and Administration Fund as provided in this
9Section, beginning on July 1, 2018 the Department shall pay
10each month into the Downstate Public Transportation Fund the
11moneys required to be so paid under Section 2-3 of the
12Downstate 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

 

 

10200HB1539sam001- 327 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 328 -LRB102 03555 HLH 39048 a

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 County and Mass Transit
5District Fund, the Local Government Tax Fund, the Build
6Illinois Fund, the McCormick Place Expansion Project Fund, the
7Illinois Tax Increment Fund, the Energy Infrastructure Fund,
8and the Tax Compliance and Administration Fund as provided in
9this Section, the Department shall pay each month into the
10Road Fund the amount estimated to represent 16% of the net
11revenue realized from the taxes imposed on motor fuel and
12gasohol. Beginning July 1, 2022 and until July 1, 2023,
13subject to the payment of amounts into the County and Mass
14Transit District Fund, the Local Government Tax Fund, the
15Build Illinois Fund, the McCormick Place Expansion Project
16Fund, the Illinois Tax Increment Fund, the Energy
17Infrastructure Fund, and the Tax Compliance and Administration
18Fund as provided in this Section, the Department shall pay
19each month into the Road Fund the amount estimated to
20represent 32% of the net revenue realized from the taxes
21imposed on motor fuel and gasohol. Beginning July 1, 2023 and
22until July 1, 2024, subject to the payment of amounts into the
23County and Mass Transit District Fund, the Local Government
24Tax Fund, the Build Illinois Fund, the McCormick Place
25Expansion Project Fund, the Illinois Tax Increment Fund, the
26Energy Infrastructure Fund, and the Tax Compliance and

 

 

10200HB1539sam001- 329 -LRB102 03555 HLH 39048 a

1Administration Fund as provided in this Section, the
2Department shall pay each month into the Road Fund the amount
3estimated to represent 48% of the net revenue realized from
4the taxes imposed on motor fuel and gasohol. Beginning July 1,
52024 and until July 1, 2025, subject to the payment of amounts
6into the County and Mass Transit District Fund, the Local
7Government Tax Fund, the Build Illinois Fund, the McCormick
8Place Expansion Project Fund, the Illinois Tax Increment Fund,
9the Energy Infrastructure Fund, and the Tax Compliance and
10Administration Fund as provided in this Section, the
11Department shall pay each month into the Road Fund the amount
12estimated to represent 64% of the net revenue realized from
13the taxes imposed on motor fuel and gasohol. Beginning on July
141, 2025, subject to the payment of amounts into the County and
15Mass Transit District Fund, the Local Government Tax Fund, the
16Build Illinois Fund, the McCormick Place Expansion Project
17Fund, the Illinois Tax Increment Fund, the Energy
18Infrastructure Fund, and the Tax Compliance and Administration
19Fund as provided in this Section, the Department shall pay
20each month into the Road Fund the amount estimated to
21represent 80% of the net revenue realized from the taxes
22imposed on motor fuel and gasohol. As used in this paragraph
23"motor fuel" has the meaning given to that term in Section 1.1
24of the Motor Fuel Tax Law Act, and "gasohol" has the meaning
25given to that term in Section 3-40 of the Use Tax Act.
26    Of the remainder of the moneys received by the Department

 

 

10200HB1539sam001- 330 -LRB102 03555 HLH 39048 a

1pursuant to this Act, 75% thereof shall be paid into the State
2Treasury and 25% shall be reserved in a special account and
3used only for the transfer to the Common School Fund as part of
4the monthly transfer from the General Revenue Fund in
5accordance with Section 8a of the State Finance Act.
6    The Department may, upon separate written notice to a
7taxpayer, require the taxpayer to prepare and file with the
8Department on a form prescribed by the Department within not
9less than 60 days after receipt of the notice an annual
10information return for the tax year specified in the notice.
11Such annual return to the Department shall include a statement
12of gross receipts as shown by the retailer's last Federal
13income tax return. If the total receipts of the business as
14reported in the Federal income tax return do not agree with the
15gross receipts reported to the Department of Revenue for the
16same period, the retailer shall attach to his annual return a
17schedule showing a reconciliation of the 2 amounts and the
18reasons for the difference. The retailer's annual return to
19the Department shall also disclose the cost of goods sold by
20the retailer during the year covered by such return, opening
21and closing inventories of such goods for such year, costs of
22goods used from stock or taken from stock and given away by the
23retailer during such year, payroll information of the
24retailer's business during such year and any additional
25reasonable information which the Department deems would be
26helpful in determining the accuracy of the monthly, quarterly

 

 

10200HB1539sam001- 331 -LRB102 03555 HLH 39048 a

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

 

 

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1Government.
2    As soon as possible after the first day of each month, upon
3certification of the Department of Revenue, the Comptroller
4shall order transferred and the Treasurer shall transfer from
5the General Revenue Fund to the Motor Fuel Tax Fund an amount
6equal to 1.7% of 80% of the net revenue realized under this Act
7for the second preceding month. Beginning April 1, 2000, this
8transfer is no longer required and shall not be made.
9    Net revenue realized for a month shall be the revenue
10collected by the State pursuant to this Act, less the amount
11paid out during that month as refunds to taxpayers for
12overpayment of liability.
13    For greater simplicity of administration, manufacturers,
14importers and wholesalers whose products are sold at retail in
15Illinois by numerous retailers, and who wish to do so, may
16assume the responsibility for accounting and paying to the
17Department all tax accruing under this Act with respect to
18such sales, if the retailers who are affected do not make
19written objection to the Department to this arrangement.
20    Any person who promotes, organizes, provides retail
21selling space for concessionaires or other types of sellers at
22the Illinois State Fair, DuQuoin State Fair, county fairs,
23local fairs, art shows, flea markets and similar exhibitions
24or events, including any transient merchant as defined by
25Section 2 of the Transient Merchant Act of 1987, is required to
26file a report with the Department providing the name of the

 

 

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

 

 

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1notify concessionaires and other sellers affected by the
2imposition of this requirement. In the absence of notification
3by the Department, the concessionaires and other sellers shall
4file their returns as otherwise required in this Section.
5(Source: P.A. 101-10, Article 15, Section 15-25, eff. 6-5-19;
6101-10, Article 25, Section 25-120, eff. 6-5-19; 101-27, eff.
76-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
8101-636, eff. 6-10-20; 102-634, eff. 8-27-21; revised
912-7-21.)
 
10    Section 60-35. The Innovation Development and Economy Act
11is amended by changing Sections 10 and 31 as follows:
 
12    (50 ILCS 470/10)
13    Sec. 10. Definitions. As used in this Act, the following
14words and phrases shall have the following meanings unless a
15different meaning clearly appears from the context:
16    "Base year" means the calendar year immediately prior to
17the calendar year in which the STAR bond district is
18established.
19    "Commence work" means the manifest commencement of actual
20operations on the development site, such as, erecting a
21building, general on-site and off-site grading and utility
22installations, commencing design and construction
23documentation, ordering lead-time materials, excavating the
24ground to lay a foundation or a basement, or work of like

 

 

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1description which a reasonable person would recognize as being
2done with the intention and purpose to continue work until the
3project is completed.
4    "County" means the county in which a proposed STAR bond
5district is located.
6    "De minimis" means an amount less than 15% of the land area
7within a STAR bond district.
8    "Department of Revenue" means the Department of Revenue of
9the State of Illinois.
10    "Destination user" means an owner, operator, licensee,
11co-developer, subdeveloper, or tenant (i) that operates a
12business within a STAR bond district that is a retail store
13having at least 150,000 square feet of sales floor area; (ii)
14that at the time of opening does not have another Illinois
15location within a 70 mile radius; (iii) that has an annual
16average of not less than 30% of customers who travel from at
17least 75 miles away or from out-of-state, as demonstrated by
18data from a comparable existing store or stores, or, if there
19is no comparable existing store, as demonstrated by an
20economic analysis that shows that the proposed retailer will
21have an annual average of not less than 30% of customers who
22travel from at least 75 miles away or from out-of-state; and
23(iv) that makes an initial capital investment, including
24project costs and other direct costs, of not less than
25$30,000,000 for such retail store.
26    "Destination hotel" means a hotel (as that term is defined

 

 

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1in Section 2 of the Hotel Operators' Occupation Tax Act)
2complex having at least 150 guest rooms and which also
3includes a venue for entertainment attractions, rides, or
4other activities oriented toward the entertainment and
5amusement of its guests and other patrons.
6    "Developer" means any individual, corporation, trust,
7estate, partnership, limited liability partnership, limited
8liability company, or other entity. The term does not include
9a not-for-profit entity, political subdivision, or other
10agency or instrumentality of the State.
11    "Director" means the Director of Revenue, who shall
12consult with the Director of Commerce and Economic Opportunity
13in any approvals or decisions required by the Director under
14this Act.
15    "Economic impact study" means a study conducted by an
16independent economist to project the financial benefit of the
17proposed STAR bond project to the local, regional, and State
18economies, consider the proposed adverse impacts on similar
19projects and businesses, as well as municipalities within the
20projected market area, and draw conclusions about the net
21effect of the proposed STAR bond project on the local,
22regional, and State economies. A copy of the economic impact
23study shall be provided to the Director for review.
24    "Eligible area" means any improved or vacant area that (i)
25is contiguous and is not, in the aggregate, less than 250 acres
26nor more than 500 acres which must include only parcels of real

 

 

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1property directly and substantially benefited by the proposed
2STAR bond district plan, (ii) is adjacent to a federal
3interstate highway, (iii) is within one mile of 2 State
4highways, (iv) is within one mile of an entertainment user, or
5a major or minor league sports stadium or other similar
6entertainment venue that had an initial capital investment of
7at least $20,000,000, and (v) includes land that was
8previously surface or strip mined. The area may be bisected by
9streets, highways, roads, alleys, railways, bike paths,
10streams, rivers, and other waterways and still be deemed
11contiguous. In addition, in order to constitute an eligible
12area one of the following requirements must be satisfied and
13all of which are subject to the review and approval of the
14Director as provided in subsection (d) of Section 15:
15        (a) the governing body of the political subdivision
16    shall have determined that the area meets the requirements
17    of a "blighted area" as defined under the Tax Increment
18    Allocation Redevelopment Act; or
19        (b) the governing body of the political subdivision
20    shall have determined that the area is a blighted area as
21    determined under the provisions of Section 11-74.3-5 of
22    the Illinois Municipal Code; or
23        (c) the governing body of the political subdivision
24    shall make the following findings:
25            (i) that the vacant portions of the area have
26        remained vacant for at least one year, or that any

 

 

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1        building located on a vacant portion of the property
2        was demolished within the last year and that the
3        building would have qualified under item (ii) of this
4        subsection;
5            (ii) if portions of the area are currently
6        developed, that the use, condition, and character of
7        the buildings on the property are not consistent with
8        the purposes set forth in Section 5;
9            (iii) that the STAR bond district is expected to
10        create or retain job opportunities within the
11        political subdivision;
12            (iv) that the STAR bond district will serve to
13        further the development of adjacent areas;
14            (v) that without the availability of STAR bonds,
15        the projects described in the STAR bond district plan
16        would not be possible;
17            (vi) that the master developer meets high
18        standards of creditworthiness and financial strength
19        as demonstrated by one or more of the following: (i)
20        corporate debenture ratings of BBB or higher by
21        Standard & Poor's Corporation or Baa or higher by
22        Moody's Investors Service, Inc.; (ii) a letter from a
23        financial institution with assets of $10,000,000 or
24        more attesting to the financial strength of the master
25        developer; or (iii) specific evidence of equity
26        financing for not less than 10% of the estimated total

 

 

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1        STAR bond project costs;
2            (vii) that the STAR bond district will strengthen
3        the commercial sector of the political subdivision;
4            (viii) that the STAR bond district will enhance
5        the tax base of the political subdivision; and
6            (ix) that the formation of a STAR bond district is
7        in the best interest of the political subdivision.
8    "Entertainment user" means an owner, operator, licensee,
9co-developer, subdeveloper, or tenant that operates a business
10within a STAR bond district that has a primary use of providing
11a venue for entertainment attractions, rides, or other
12activities oriented toward the entertainment and amusement of
13its patrons, occupies at least 20 acres of land in the STAR
14bond district, and makes an initial capital investment,
15including project costs and other direct and indirect costs,
16of not less than $25,000,000 for that venue.
17    "Feasibility study" means a feasibility study as defined
18in subsection (b) of Section 20.
19    "Infrastructure" means the public improvements and private
20improvements that serve the public purposes set forth in
21Section 5 of this Act and that benefit the STAR bond district
22or any STAR bond projects, including, but not limited to,
23streets, drives and driveways, traffic and directional signs
24and signals, parking lots and parking facilities,
25interchanges, highways, sidewalks, bridges, underpasses and
26overpasses, bike and walking trails, sanitary storm sewers and

 

 

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1lift stations, drainage conduits, channels, levees, canals,
2storm water detention and retention facilities, utilities and
3utility connections, water mains and extensions, and street
4and parking lot lighting and connections.
5    "Local sales taxes" means any locally-imposed taxes
6received by a municipality, county, or other local
7governmental entity arising from sales by retailers and
8servicemen within a STAR bond district, including business
9district sales taxes and STAR bond occupation taxes, and that
10portion of the net revenue realized under the Retailers'
11Occupation Tax Act, the Use Tax Act, the Service Use Tax Act,
12and the Service Occupation Tax Act from transactions at places
13of business located within a STAR bond district, including
14that portion of the net revenue that would have been realized
15but for the reduction of the rate to 0% under this amendatory
16Act of the 102nd General Assembly, that is deposited or, under
17this amendatory Act of the 102nd General Assembly, transferred
18into the Local Government Tax Fund and the County and Mass
19Transit District Fund. For the purpose of this Act, "local
20sales taxes" does not include (i) any taxes authorized
21pursuant to the Local Mass Transit District Act or the
22Metro-East Park and Recreation District Act for so long as the
23applicable taxing district does not impose a tax on real
24property, (ii) county school facility and resources occupation
25taxes imposed pursuant to Section 5-1006.7 of the Counties
26Code, or (iii) any taxes authorized under the Flood Prevention

 

 

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1District Act.
2    "Local sales tax increment" means, except as otherwise
3provided in this Section, with respect to local sales taxes
4administered by the Illinois Department of Revenue, (i) all of
5the local sales tax paid (plus all of the local sales tax that
6would have been paid but for the reduction of the rate to 0%
7under this amendatory Act of the 102nd General Assembly) by
8destination users, destination hotels, and entertainment users
9that is in excess of the local sales tax paid (plus all of the
10local sales tax that would have been paid but for the reduction
11of the rate to 0% under this amendatory Act of the 102nd
12General Assembly) by destination users, destination hotels,
13and entertainment users for the same month in the base year, as
14determined by the Illinois Department of Revenue, (ii) in the
15case of a municipality forming a STAR bond district that is
16wholly within the corporate boundaries of the municipality and
17in the case of a municipality and county forming a STAR bond
18district that is only partially within such municipality, that
19portion of the local sales tax paid (plus the local sales tax
20that would have been paid but for the reduction of the rate to
210% under this amendatory Act of the 102nd General Assembly) by
22taxpayers that are not destination users, destination hotels,
23or entertainment users that is in excess of the local sales tax
24paid (plus the local sales tax that would have been paid but
25for the reduction of the rate to 0% under this amendatory Act
26of the 102nd General Assembly) by taxpayers that are not

 

 

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1destination users, destination hotels, or entertainment users
2for the same month in the base year, as determined by the
3Illinois Department of Revenue, and (iii) in the case of a
4county in which a STAR bond district is formed that is wholly
5within a municipality, that portion of the local sales tax
6paid by taxpayers that are not destination users, destination
7hotels, or entertainment users that is in excess of the local
8sales tax paid by taxpayers that are not destination users,
9destination hotels, or entertainment users for the same month
10in the base year, as determined by the Illinois Department of
11Revenue, but only if the corporate authorities of the county
12adopts an ordinance, and files a copy with the Department
13within the same time frames as required for STAR bond
14occupation taxes under Section 31, that designates the taxes
15referenced in this clause (iii) as part of the local sales tax
16increment under this Act. "Local sales tax increment" means,
17with respect to local sales taxes administered by a
18municipality, county, or other unit of local government, that
19portion of the local sales tax that is in excess of the local
20sales tax for the same month in the base year, as determined by
21the respective municipality, county, or other unit of local
22government. If any portion of local sales taxes are, at the
23time of formation of a STAR bond district, already subject to
24tax increment financing under the Tax Increment Allocation
25Redevelopment Act, then the local sales tax increment for such
26portion shall be frozen at the base year established in

 

 

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1accordance with this Act, and all future incremental increases
2shall be included in the "local sales tax increment" under
3this Act. Any party otherwise entitled to receipt of
4incremental local sales tax revenues through an existing tax
5increment financing district shall be entitled to continue to
6receive such revenues up to the amount frozen in the base year.
7Nothing in this Act shall affect the prior qualification of
8existing redevelopment project costs incurred that are
9eligible for reimbursement under the Tax Increment Allocation
10Redevelopment Act. In such event, prior to approving a STAR
11bond district, the political subdivision forming the STAR bond
12district shall take such action as is necessary, including
13amending the existing tax increment financing district
14redevelopment plan, to carry out the provisions of this Act.
15The Illinois Department of Revenue shall allocate the local
16sales tax increment only if the local sales tax is
17administered by the Department. "Local sales tax increment"
18does not include taxes and penalties collected on aviation
19fuel, as defined in Section 3 of the Retailers' Occupation
20Tax, sold on or after December 1, 2019 and through December 31,
212020.
22    "Market study" means a study to determine the ability of
23the proposed STAR bond project to gain market share locally
24and regionally and to remain profitable past the term of
25repayment of STAR bonds.
26    "Master developer" means a developer cooperating with a

 

 

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1political subdivision to plan, develop, and implement a STAR
2bond project plan for a STAR bond district. Subject to the
3limitations of Section 25, the master developer may work with
4and transfer certain development rights to other developers
5for the purpose of implementing STAR bond project plans and
6achieving the purposes of this Act. A master developer for a
7STAR bond district shall be appointed by a political
8subdivision in the resolution establishing the STAR bond
9district, and the master developer must, at the time of
10appointment, own or have control of, through purchase
11agreements, option contracts, or other means, not less than
1250% of the acreage within the STAR bond district and the master
13developer or its affiliate must have ownership or control on
14June 1, 2010.
15    "Master development agreement" means an agreement between
16the master developer and the political subdivision to govern a
17STAR bond district and any STAR bond projects.
18    "Municipality" means the city, village, or incorporated
19town in which a proposed STAR bond district is located.
20    "Pledged STAR revenues" means those sales tax and revenues
21and other sources of funds pledged to pay debt service on STAR
22bonds or to pay project costs pursuant to Section 30.
23Notwithstanding any provision to the contrary, the following
24revenues shall not constitute pledged STAR revenues or be
25available to pay principal and interest on STAR bonds: any
26State sales tax increment or local sales tax increment from a

 

 

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1retail entity initiating operations in a STAR bond district
2while terminating operations at another Illinois location
3within 25 miles of the STAR bond district. For purposes of this
4paragraph, "terminating operations" means a closing of a
5retail operation that is directly related to the opening of
6the same operation or like retail entity owned or operated by
7more than 50% of the original ownership in a STAR bond district
8within one year before or after initiating operations in the
9STAR bond district, but it does not mean closing an operation
10for reasons beyond the control of the retail entity, as
11documented by the retail entity, subject to a reasonable
12finding by the municipality (or county if such retail
13operation is not located within a municipality) in which the
14terminated operations were located that the closed location
15contained inadequate space, had become economically obsolete,
16or was no longer a viable location for the retailer or
17serviceman.
18    "Political subdivision" means a municipality or county
19which undertakes to establish a STAR bond district pursuant to
20the provisions of this Act.
21    "Project costs" means and includes the sum total of all
22costs incurred or estimated to be incurred on or following the
23date of establishment of a STAR bond district that are
24reasonable or necessary to implement a STAR bond district plan
25or any STAR bond project plans, or both, including costs
26incurred for public improvements and private improvements that

 

 

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1serve the public purposes set forth in Section 5 of this Act.
2Such costs include without limitation the following:
3        (a) costs of studies, surveys, development of plans
4    and specifications, formation, implementation, and
5    administration of a STAR bond district, STAR bond district
6    plan, any STAR bond projects, or any STAR bond project
7    plans, including, but not limited to, staff and
8    professional service costs for architectural, engineering,
9    legal, financial, planning, or other services, provided
10    however that no charges for professional services may be
11    based on a percentage of the tax increment collected and
12    no contracts for professional services, excluding
13    architectural and engineering services, may be entered
14    into if the terms of the contract extend beyond a period of
15    3 years;
16        (b) property assembly costs, including, but not
17    limited to, acquisition of land and other real property or
18    rights or interests therein, located within the boundaries
19    of a STAR bond district, demolition of buildings, site
20    preparation, site improvements that serve as an engineered
21    barrier addressing ground level or below ground
22    environmental contamination, including, but not limited
23    to, parking lots and other concrete or asphalt barriers,
24    the clearing and grading of land, and importing additional
25    soil and fill materials, or removal of soil and fill
26    materials from the site;

 

 

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1        (c) subject to paragraph (d), costs of buildings and
2    other vertical improvements that are located within the
3    boundaries of a STAR bond district and owned by a
4    political subdivision or other public entity, including
5    without limitation police and fire stations, educational
6    facilities, and public restrooms and rest areas;
7        (c-1) costs of buildings and other vertical
8    improvements that are located within the boundaries of a
9    STAR bond district and owned by a destination user or
10    destination hotel; except that only 2 destination users in
11    a STAR bond district and one destination hotel are
12    eligible to include the cost of those vertical
13    improvements as project costs;
14        (c-5) costs of buildings; rides and attractions, which
15    include carousels, slides, roller coasters, displays,
16    models, towers, works of art, and similar theme and
17    amusement park improvements; and other vertical
18    improvements that are located within the boundaries of a
19    STAR bond district and owned by an entertainment user;
20    except that only one entertainment user in a STAR bond
21    district is eligible to include the cost of those vertical
22    improvements as project costs;
23        (d) costs of the design and construction of
24    infrastructure and public works located within the
25    boundaries of a STAR bond district that are reasonable or
26    necessary to implement a STAR bond district plan or any

 

 

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1    STAR bond project plans, or both, except that project
2    costs shall not include the cost of constructing a new
3    municipal public building principally used to provide
4    offices, storage space, or conference facilities or
5    vehicle storage, maintenance, or repair for
6    administrative, public safety, or public works personnel
7    and that is not intended to replace an existing public
8    building unless the political subdivision makes a
9    reasonable determination in a STAR bond district plan or
10    any STAR bond project plans, supported by information that
11    provides the basis for that determination, that the new
12    municipal building is required to meet an increase in the
13    need for public safety purposes anticipated to result from
14    the implementation of the STAR bond district plan or any
15    STAR bond project plans;
16        (e) costs of the design and construction of the
17    following improvements located outside the boundaries of a
18    STAR bond district, provided that the costs are essential
19    to further the purpose and development of a STAR bond
20    district plan and either (i) part of and connected to
21    sewer, water, or utility service lines that physically
22    connect to the STAR bond district or (ii) significant
23    improvements for adjacent offsite highways, streets,
24    roadways, and interchanges that are approved by the
25    Illinois Department of Transportation. No other cost of
26    infrastructure and public works improvements located

 

 

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1    outside the boundaries of a STAR bond district may be
2    deemed project costs;
3        (f) costs of job training and retraining projects,
4    including the cost of "welfare to work" programs
5    implemented by businesses located within a STAR bond
6    district;
7        (g) financing costs, including, but not limited to,
8    all necessary and incidental expenses related to the
9    issuance of obligations and which may include payment of
10    interest on any obligations issued hereunder including
11    interest accruing during the estimated period of
12    construction of any improvements in a STAR bond district
13    or any STAR bond projects for which such obligations are
14    issued and for not exceeding 36 months thereafter and
15    including reasonable reserves related thereto;
16        (h) to the extent the political subdivision by written
17    agreement accepts and approves the same, all or a portion
18    of a taxing district's capital costs resulting from a STAR
19    bond district or STAR bond projects necessarily incurred
20    or to be incurred within a taxing district in furtherance
21    of the objectives of a STAR bond district plan or STAR bond
22    project plans;
23        (i) interest cost incurred by a developer for project
24    costs related to the acquisition, formation,
25    implementation, development, construction, and
26    administration of a STAR bond district, STAR bond district

 

 

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1    plan, STAR bond projects, or any STAR bond project plans
2    provided that:
3            (i) payment of such costs in any one year may not
4        exceed 30% of the annual interest costs incurred by
5        the developer with regard to the STAR bond district or
6        any STAR bond projects during that year; and
7            (ii) the total of such interest payments paid
8        pursuant to this Act may not exceed 30% of the total
9        cost paid or incurred by the developer for a STAR bond
10        district or STAR bond projects, plus project costs,
11        excluding any property assembly costs incurred by a
12        political subdivision pursuant to this Act;
13        (j) costs of common areas located within the
14    boundaries of a STAR bond district;
15        (k) costs of landscaping and plantings, retaining
16    walls and fences, man-made lakes and ponds, shelters,
17    benches, lighting, and similar amenities located within
18    the boundaries of a STAR bond district;
19        (l) costs of mounted building signs, site monument,
20    and pylon signs located within the boundaries of a STAR
21    bond district; or
22        (m) if included in the STAR bond district plan and
23    approved in writing by the Director, salaries or a portion
24    of salaries for local government employees to the extent
25    the same are directly attributable to the work of such
26    employees on the establishment and management of a STAR

 

 

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1    bond district or any STAR bond projects.
2    Except as specified in items (a) through (m), "project
3costs" shall not include:
4        (i) the cost of construction of buildings that are
5    privately owned or owned by a municipality and leased to a
6    developer or retail user for non-entertainment retail
7    uses;
8        (ii) moving expenses for employees of the businesses
9    locating within the STAR bond district;
10        (iii) property taxes for property located in the STAR
11    bond district;
12        (iv) lobbying costs; and
13        (v) general overhead or administrative costs of the
14    political subdivision that would still have been incurred
15    by the political subdivision if the political subdivision
16    had not established a STAR bond district.
17    "Project development agreement" means any one or more
18agreements, including any amendments thereto, between a master
19developer and any co-developer or subdeveloper in connection
20with a STAR bond project, which project development agreement
21may include the political subdivision as a party.
22    "Projected market area" means any area within the State in
23which a STAR bond district or STAR bond project is projected to
24have a significant fiscal or market impact as determined by
25the Director.
26    "Resolution" means a resolution, order, ordinance, or

 

 

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1other appropriate form of legislative action of a political
2subdivision or other applicable public entity approved by a
3vote of a majority of a quorum at a meeting of the governing
4body of the political subdivision or applicable public entity.
5    "STAR bond" means a sales tax and revenue bond, note, or
6other obligation payable from pledged STAR revenues and issued
7by a political subdivision, the proceeds of which shall be
8used only to pay project costs as defined in this Act.
9    "STAR bond district" means the specific area declared to
10be an eligible area as determined by the political
11subdivision, and approved by the Director, in which the
12political subdivision may develop one or more STAR bond
13projects.
14    "STAR bond district plan" means the preliminary or
15conceptual plan that generally identifies the proposed STAR
16bond project areas and identifies in a general manner the
17buildings, facilities, and improvements to be constructed or
18improved in each STAR bond project area.
19    "STAR bond project" means a project within a STAR bond
20district which is approved pursuant to Section 20.
21    "STAR bond project area" means the geographic area within
22a STAR bond district in which there may be one or more STAR
23bond projects.
24    "STAR bond project plan" means the written plan adopted by
25a political subdivision for the development of a STAR bond
26project in a STAR bond district; the plan may include, but is

 

 

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1not limited to, (i) project costs incurred prior to the date of
2the STAR bond project plan and estimated future STAR bond
3project costs, (ii) proposed sources of funds to pay those
4costs, (iii) the nature and estimated term of any obligations
5to be issued by the political subdivision to pay those costs,
6(iv) the most recent equalized assessed valuation of the STAR
7bond project area, (v) an estimate of the equalized assessed
8valuation of the STAR bond district or applicable project area
9after completion of a STAR bond project, (vi) a general
10description of the types of any known or proposed developers,
11users, or tenants of the STAR bond project or projects
12included in the plan, (vii) a general description of the type,
13structure, and character of the property or facilities to be
14developed or improved, (viii) a description of the general
15land uses to apply to the STAR bond project, and (ix) a general
16description or an estimate of the type, class, and number of
17employees to be employed in the operation of the STAR bond
18project.
19    "State sales tax" means all of the net revenue realized
20under the Retailers' Occupation Tax Act, the Use Tax Act, the
21Service Use Tax Act, and the Service Occupation Tax Act from
22transactions at places of business located within a STAR bond
23district, excluding that portion of the net revenue realized
24under the Retailers' Occupation Tax Act, the Use Tax Act, the
25Service Use Tax Act, and the Service Occupation Tax Act from
26transactions at places of business located within a STAR bond

 

 

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1district that is deposited into the Local Government Tax Fund
2and the County and Mass Transit District Fund.
3    "State sales tax increment" means (i) 100% of that portion
4of the State sales tax that is in excess of the State sales tax
5for the same month in the base year, as determined by the
6Department of Revenue, from transactions at up to 2
7destination users, one destination hotel, and one
8entertainment user located within a STAR bond district, which
9destination users, destination hotel, and entertainment user
10shall be designated by the master developer and approved by
11the political subdivision and the Director in conjunction with
12the applicable STAR bond project approval, and (ii) 25% of
13that portion of the State sales tax that is in excess of the
14State sales tax for the same month in the base year, as
15determined by the Department of Revenue, from all other
16transactions within a STAR bond district. If any portion of
17State sales taxes are, at the time of formation of a STAR bond
18district, already subject to tax increment financing under the
19Tax Increment Allocation Redevelopment Act, then the State
20sales tax increment for such portion shall be frozen at the
21base year established in accordance with this Act, and all
22future incremental increases shall be included in the State
23sales tax increment under this Act. Any party otherwise
24entitled to receipt of incremental State sales tax revenues
25through an existing tax increment financing district shall be
26entitled to continue to receive such revenues up to the amount

 

 

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1frozen in the base year. Nothing in this Act shall affect the
2prior qualification of existing redevelopment project costs
3incurred that are eligible for reimbursement under the Tax
4Increment Allocation Redevelopment Act. In such event, prior
5to approving a STAR bond district, the political subdivision
6forming the STAR bond district shall take such action as is
7necessary, including amending the existing tax increment
8financing district redevelopment plan, to carry out the
9provisions of this Act.
10    "Substantial change" means a change wherein the proposed
11STAR bond project plan differs substantially in size, scope,
12or use from the approved STAR bond district plan or STAR bond
13project plan.
14    "Taxpayer" means an individual, partnership, corporation,
15limited liability company, trust, estate, or other entity that
16is subject to the Illinois Income Tax Act.
17    "Total development costs" means the aggregate public and
18private investment in a STAR bond district, including project
19costs and other direct and indirect costs related to the
20development of the STAR bond district.
21    "Traditional retail use" means the operation of a business
22that derives at least 90% of its annual gross revenue from
23sales at retail, as that phrase is defined by Section 1 of the
24Retailers' Occupation Tax Act, but does not include the
25operations of destination users, entertainment users,
26restaurants, hotels, retail uses within hotels, or any other

 

 

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1non-retail uses.
2    "Vacant" means that portion of the land in a proposed STAR
3bond district that is not occupied by a building, facility, or
4other vertical improvement.
5(Source: P.A. 101-10, eff. 6-5-19; 101-455, eff. 8-23-19;
6101-604, eff. 12-13-19.)
 
7    (50 ILCS 470/31)
8    Sec. 31. STAR bond occupation taxes.
9    (a) If the corporate authorities of a political
10subdivision have established a STAR bond district and have
11elected to impose a tax by ordinance pursuant to subsection
12(b) or (c) of this Section, each year after the date of the
13adoption of the ordinance and until all STAR bond project
14costs and all political subdivision obligations financing the
15STAR bond project costs, if any, have been paid in accordance
16with the STAR bond project plans, but in no event longer than
17the maximum maturity date of the last of the STAR bonds issued
18for projects in the STAR bond district, all amounts generated
19by the retailers' occupation tax and service occupation tax
20shall be collected and the tax shall be enforced by the
21Department of Revenue in the same manner as all retailers'
22occupation taxes and service occupation taxes imposed in the
23political subdivision imposing the tax. The corporate
24authorities of the political subdivision shall deposit the
25proceeds of the taxes imposed under subsections (b) and (c)

 

 

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1into either (i) a special fund held by the corporate
2authorities of the political subdivision called the STAR Bonds
3Tax Allocation Fund for the purpose of paying STAR bond
4project costs and obligations incurred in the payment of those
5costs if such taxes are designated as pledged STAR revenues by
6resolution or ordinance of the political subdivision or (ii)
7the political subdivision's general corporate fund if such
8taxes are not designated as pledged STAR revenues by
9resolution or ordinance.
10    The tax imposed under this Section by a municipality may
11be imposed only on the portion of a STAR bond district that is
12within the boundaries of the municipality. For any part of a
13STAR bond district that lies outside of the boundaries of that
14municipality, the municipality in which the other part of the
15STAR bond district lies (or the county, in cases where a
16portion of the STAR bond district lies in the unincorporated
17area of a county) is authorized to impose the tax under this
18Section on that part of the STAR bond district.
19    (b) The corporate authorities of a political subdivision
20that has established a STAR bond district under this Act may,
21by ordinance or resolution, impose a STAR Bond Retailers'
22Occupation Tax upon all persons engaged in the business of
23selling tangible personal property, other than an item of
24tangible personal property titled or registered with an agency
25of this State's government, at retail in the STAR bond
26district at a rate not to exceed 1% of the gross receipts from

 

 

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1the sales made in the course of that business, to be imposed
2only in 0.25% increments. The tax may not be imposed on
3tangible personal property taxed at the 1% rate under the
4Retailers' Occupation Tax Act (or at the 0% rate imposed under
5this amendatory Act of the 102nd General Assembly). Beginning
6December 1, 2019 and through December 31, 2020, this tax is not
7imposed on sales of aviation fuel unless the tax revenue is
8expended for airport-related purposes. If the District does
9not have an airport-related purpose to which aviation fuel tax
10revenue is dedicated, then aviation fuel is excluded from the
11tax. The municipality must comply with the certification
12requirements for airport-related purposes under Section 2-22
13of the Retailers' Occupation Tax Act. For purposes of this
14Act, "airport-related purposes" has the meaning ascribed in
15Section 6z-20.2 of the State Finance Act. Beginning January 1,
162021, this tax is not imposed on sales of aviation fuel for so
17long as the revenue use requirements of 49 U.S.C. 47107(b) and
1849 U.S.C. 47133 are binding on the District.
19    The tax imposed under this subsection and all civil
20penalties that may be assessed as an incident thereof shall be
21collected and enforced by the Department of Revenue. The
22certificate of registration that is issued by the Department
23to a retailer under the Retailers' Occupation Tax Act shall
24permit the retailer to engage in a business that is taxable
25under any ordinance or resolution enacted pursuant to this
26subsection without registering separately with the Department

 

 

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1under such ordinance or resolution or under this subsection.
2The Department of Revenue shall have full power to administer
3and enforce this subsection, to collect all taxes and
4penalties due under this subsection in the manner hereinafter
5provided, and to determine all rights to credit memoranda
6arising on account of the erroneous payment of tax or penalty
7under this subsection. In the administration of, and
8compliance with, this subsection, the Department and persons
9who are subject to this subsection shall have the same rights,
10remedies, privileges, immunities, powers, and duties, and be
11subject to the same conditions, restrictions, limitations,
12penalties, exclusions, exemptions, and definitions of terms
13and employ the same modes of procedure, as are prescribed in
14Sections 1, 1a through 1o, 2 through 2-65 (in respect to all
15provisions therein other than the State rate of tax), 2c
16through 2h, 3 (except as to the disposition of taxes and
17penalties collected, and except that the retailer's discount
18is not allowed for taxes paid on aviation fuel that are subject
19to the revenue use requirements of 49 U.S.C. 47107(b) and 49
20U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k,
215l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the
22Retailers' Occupation Tax Act and all provisions of the
23Uniform Penalty and Interest Act, as fully as if those
24provisions were set forth herein.
25    If a tax is imposed under this subsection (b), a tax shall
26also be imposed under subsection (c) of this Section.

 

 

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1    (c) If a tax has been imposed under subsection (b), a STAR
2Bond Service Occupation Tax shall also be imposed upon all
3persons engaged, in the STAR bond district, in the business of
4making sales of service, who, as an incident to making those
5sales of service, transfer tangible personal property within
6the STAR bond district, either in the form of tangible
7personal property or in the form of real estate as an incident
8to a sale of service. The tax shall be imposed at the same rate
9as the tax imposed in subsection (b) and shall not exceed 1% of
10the selling price of tangible personal property so transferred
11within the STAR bond district, to be imposed only in 0.25%
12increments. The tax may not be imposed on tangible personal
13property taxed at the 1% rate under the Service Occupation Tax
14Act (or at the 0% rate imposed under this amendatory Act of the
15102nd General Assembly). Beginning December 1, 2019 and
16through December 31, 2020, this tax is not imposed on sales of
17aviation fuel unless the tax revenue is expended for
18airport-related purposes. If the District does not have an
19airport-related purpose to which aviation fuel tax revenue is
20dedicated, then aviation fuel is excluded from the tax. The
21municipality must comply with the certification requirements
22for airport-related purposes under Section 2-22 of the
23Retailers' Occupation Tax Act. For purposes of this Act,
24"airport-related purposes" has the meaning ascribed in Section
256z-20.2 of the State Finance Act. Beginning January 1, 2021,
26this tax is not imposed on sales of aviation fuel for so long

 

 

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1as the revenue use requirements of 49 U.S.C. 47107(b) and 49
2U.S.C. 47133 are binding on the District.
3    The tax imposed under this subsection and all civil
4penalties that may be assessed as an incident thereof shall be
5collected and enforced by the Department of Revenue. The
6certificate of registration that is issued by the Department
7to a retailer under the Retailers' Occupation Tax Act or under
8the Service Occupation Tax Act shall permit the registrant to
9engage in a business that is taxable under any ordinance or
10resolution enacted pursuant to this subsection without
11registering separately with the Department under that
12ordinance or resolution or under this subsection. The
13Department of Revenue shall have full power to administer and
14enforce this subsection, to collect all taxes and penalties
15due under this subsection, to dispose of taxes and penalties
16so collected in the manner hereinafter provided, and to
17determine all rights to credit memoranda arising on account of
18the erroneous payment of tax or penalty under this subsection.
19In the administration of, and compliance with this subsection,
20the Department and persons who are subject to this subsection
21shall have the same rights, remedies, privileges, immunities,
22powers, and duties, and be subject to the same conditions,
23restrictions, limitations, penalties, exclusions, exemptions,
24and definitions of terms and employ the same modes of
25procedure as are prescribed in Sections 2, 2a through 2d, 3
26through 3-50 (in respect to all provisions therein other than

 

 

10200HB1539sam001- 362 -LRB102 03555 HLH 39048 a

1the State rate of tax), 4 (except that the reference to the
2State shall be to the STAR bond district), 5, 7, 8 (except that
3the jurisdiction to which the tax shall be a debt to the extent
4indicated in that Section 8 shall be the political
5subdivision), 9 (except as to the disposition of taxes and
6penalties collected, and except that the returned merchandise
7credit for this tax may not be taken against any State tax, and
8except that the retailer's discount is not allowed for taxes
9paid on aviation fuel that are subject to the revenue use
10requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
1111, 12 (except the reference therein to Section 2b of the
12Retailers' Occupation Tax Act), 13 (except that any reference
13to the State shall mean the political subdivision), the first
14paragraph of Section 15, and Sections 16, 17, 18, 19 and 20 of
15the Service Occupation Tax Act and all provisions of the
16Uniform Penalty and Interest Act, as fully as if those
17provisions were set forth herein.
18    If a tax is imposed under this subsection (c), a tax shall
19also be imposed under subsection (b) of this Section.
20    (d) Persons subject to any tax imposed under this Section
21may reimburse themselves for their seller's tax liability
22under this Section by separately stating the tax as an
23additional charge, which charge may be stated in combination,
24in a single amount, with State taxes that sellers are required
25to collect under the Use Tax Act, in accordance with such
26bracket schedules as the Department may prescribe.

 

 

10200HB1539sam001- 363 -LRB102 03555 HLH 39048 a

1    Whenever the Department determines that a refund should be
2made under this Section to a claimant instead of issuing a
3credit memorandum, the Department shall notify the State
4Comptroller, who shall cause the order to be drawn for the
5amount specified and to the person named in the notification
6from the Department. The refund shall be paid by the State
7Treasurer out of the STAR Bond Retailers' Occupation Tax Fund
8or the Local Government Aviation Trust Fund, as appropriate.
9    Except as otherwise provided in this paragraph, the
10Department shall immediately pay over to the State Treasurer,
11ex officio, as trustee, all taxes, penalties, and interest
12collected under this Section for deposit into the STAR Bond
13Retailers' Occupation Tax Fund. Taxes and penalties collected
14on aviation fuel sold on or after December 1, 2019, shall be
15immediately paid over by the Department to the State
16Treasurer, ex officio, as trustee, for deposit into the Local
17Government Aviation Trust Fund. The Department shall only pay
18moneys into the Local Government Aviation Trust Fund under
19this Section for so long as the revenue use requirements of 49
20U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
21District. On or before the 25th day of each calendar month, the
22Department shall prepare and certify to the Comptroller the
23disbursement of stated sums of money to named political
24subdivisions from the STAR Bond Retailers' Occupation Tax
25Fund, the political subdivisions to be those from which
26retailers have paid taxes or penalties under this Section to

 

 

10200HB1539sam001- 364 -LRB102 03555 HLH 39048 a

1the Department during the second preceding calendar month. The
2amount to be paid to each political subdivision shall be the
3amount (not including credit memoranda and not including taxes
4and penalties collected on aviation fuel sold on or after
5December 1, 2019) collected under this Section during the
6second preceding calendar month by the Department plus an
7amount the Department determines is necessary to offset any
8amounts that were erroneously paid to a different taxing body,
9and not including an amount equal to the amount of refunds made
10during the second preceding calendar month by the Department,
11less 3% of that amount, which shall be deposited into the Tax
12Compliance and Administration Fund and shall be used by the
13Department, subject to appropriation, to cover the costs of
14the Department in administering and enforcing the provisions
15of this Section, on behalf of such political subdivision, and
16not including any amount that the Department determines is
17necessary to offset any amounts that were payable to a
18different taxing body but were erroneously paid to the
19political subdivision. Within 10 days after receipt by the
20Comptroller of the disbursement certification to the political
21subdivisions provided for in this Section to be given to the
22Comptroller by the Department, the Comptroller shall cause the
23orders to be drawn for the respective amounts in accordance
24with the directions contained in the certification. The
25proceeds of the tax paid to political subdivisions under this
26Section shall be deposited into either (i) the STAR Bonds Tax

 

 

10200HB1539sam001- 365 -LRB102 03555 HLH 39048 a

1Allocation Fund by the political subdivision if the political
2subdivision has designated them as pledged STAR revenues by
3resolution or ordinance or (ii) the political subdivision's
4general corporate fund if the political subdivision has not
5designated them as pledged STAR revenues.
6    An ordinance or resolution imposing or discontinuing the
7tax under this Section or effecting a change in the rate
8thereof shall either (i) be adopted and a certified copy
9thereof filed with the Department on or before the first day of
10April, whereupon the Department, if all other requirements of
11this Section are met, shall proceed to administer and enforce
12this Section as of the first day of July next following the
13adoption and filing; or (ii) be adopted and a certified copy
14thereof filed with the Department on or before the first day of
15October, whereupon, if all other requirements of this Section
16are met, the Department shall proceed to administer and
17enforce this Section as of the first day of January next
18following the adoption and filing.
19    The Department of Revenue shall not administer or enforce
20an ordinance imposing, discontinuing, or changing the rate of
21the tax under this Section until the political subdivision
22also provides, in the manner prescribed by the Department, the
23boundaries of the STAR bond district and each address in the
24STAR bond district in such a way that the Department can
25determine by its address whether a business is located in the
26STAR bond district. The political subdivision must provide

 

 

10200HB1539sam001- 366 -LRB102 03555 HLH 39048 a

1this boundary and address information to the Department on or
2before April 1 for administration and enforcement of the tax
3under this Section by the Department beginning on the
4following July 1 and on or before October 1 for administration
5and enforcement of the tax under this Section by the
6Department beginning on the following January 1. The
7Department of Revenue shall not administer or enforce any
8change made to the boundaries of a STAR bond district or any
9address change, addition, or deletion until the political
10subdivision reports the boundary change or address change,
11addition, or deletion to the Department in the manner
12prescribed by the Department. The political subdivision must
13provide this boundary change or address change, addition, or
14deletion information to the Department on or before April 1
15for administration and enforcement by the Department of the
16change, addition, or deletion beginning on the following July
171 and on or before October 1 for administration and
18enforcement by the Department of the change, addition, or
19deletion beginning on the following January 1. The retailers
20in the STAR bond district shall be responsible for charging
21the tax imposed under this Section. If a retailer is
22incorrectly included or excluded from the list of those
23required to collect the tax under this Section, both the
24Department of Revenue and the retailer shall be held harmless
25if they reasonably relied on information provided by the
26political subdivision.

 

 

10200HB1539sam001- 367 -LRB102 03555 HLH 39048 a

1    A political subdivision that imposes the tax under this
2Section must submit to the Department of Revenue any other
3information as the Department may require that is necessary
4for the administration and enforcement of the tax.
5    When certifying the amount of a monthly disbursement to a
6political subdivision under this Section, the Department shall
7increase or decrease the amount by an amount necessary to
8offset any misallocation of previous disbursements. The offset
9amount shall be the amount erroneously disbursed within the
10previous 6 months from the time a misallocation is discovered.
11    Nothing in this Section shall be construed to authorize
12the political subdivision to impose a tax upon the privilege
13of engaging in any business which under the Constitution of
14the United States may not be made the subject of taxation by
15this State.
16    (e) When STAR bond project costs, including, without
17limitation, all political subdivision obligations financing
18STAR bond project costs, have been paid, any surplus funds
19then remaining in the STAR Bonds Tax Allocation Fund shall be
20distributed to the treasurer of the political subdivision for
21deposit into the political subdivision's general corporate
22fund. Upon payment of all STAR bond project costs and
23retirement of obligations, but in no event later than the
24maximum maturity date of the last of the STAR bonds issued in
25the STAR bond district, the political subdivision shall adopt
26an ordinance immediately rescinding the taxes imposed pursuant

 

 

10200HB1539sam001- 368 -LRB102 03555 HLH 39048 a

1to this Section and file a certified copy of the ordinance with
2the Department in the form and manner as described in this
3Section.
4(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19;
5101-604, eff. 12-13-19.)
 
6    Section 60-40. The Counties Code is amended by changing
7Sections 5-1006, 5-1006.5, 5-1006.7, and 5-1007 as follows:
 
8    (55 ILCS 5/5-1006)  (from Ch. 34, par. 5-1006)
9    Sec. 5-1006. Home Rule County Retailers' Occupation Tax
10Law. Any county that is a home rule unit may impose a tax upon
11all persons engaged in the business of selling tangible
12personal property, other than an item of tangible personal
13property titled or registered with an agency of this State's
14government, at retail in the county on the gross receipts from
15such sales made in the course of their business. If imposed,
16this tax shall only be imposed in 1/4% increments. On and after
17September 1, 1991, this additional tax may not be imposed on
18tangible personal property taxed at the 1% rate under the
19Retailers' Occupation Tax Act (or at the 0% rate imposed under
20this amendatory Act of the 102nd General Assembly). Beginning
21December 1, 2019, this tax is not imposed on sales of aviation
22fuel unless the tax revenue is expended for airport-related
23purposes. If the county does not have an airport-related
24purpose to which it dedicates aviation fuel tax revenue, then

 

 

10200HB1539sam001- 369 -LRB102 03555 HLH 39048 a

1aviation fuel is excluded from the tax. The county must comply
2with the certification requirements for airport-related
3purposes under Section 2-22 of the Retailers' Occupation Tax
4Act. For purposes of this Section, "airport-related purposes"
5has the meaning ascribed in Section 6z-20.2 of the State
6Finance Act. This exclusion for aviation fuel only applies for
7so long as the revenue use requirements of 49 U.S.C. 47107(b)
8and 49 U.S.C. 47133 are binding on the county. The changes made
9to this Section by this amendatory Act of the 101st General
10Assembly are a denial and limitation of home rule powers and
11functions under subsection (g) of Section 6 of Article VII of
12the Illinois Constitution. The tax imposed by a home rule
13county pursuant to this Section and all civil penalties that
14may be assessed as an incident thereof shall be collected and
15enforced by the State Department of Revenue. The certificate
16of registration that is issued by the Department to a retailer
17under the Retailers' Occupation Tax Act shall permit the
18retailer to engage in a business that is taxable under any
19ordinance or resolution enacted pursuant to this Section
20without registering separately with the Department under such
21ordinance or resolution or under this Section. The Department
22shall have full power to administer and enforce this Section;
23to collect all taxes and penalties due hereunder; to dispose
24of taxes and penalties so collected in the manner hereinafter
25provided; and to determine all rights to credit memoranda
26arising on account of the erroneous payment of tax or penalty

 

 

10200HB1539sam001- 370 -LRB102 03555 HLH 39048 a

1hereunder. In the administration of, and compliance with, this
2Section, the Department and persons who are subject to this
3Section shall have the same rights, remedies, privileges,
4immunities, powers and duties, and be subject to the same
5conditions, restrictions, limitations, penalties and
6definitions of terms, and employ the same modes of procedure,
7as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j,
81k, 1m, 1n, 2 through 2-65 (in respect to all provisions
9therein other than the State rate of tax), 3 (except as to the
10disposition of taxes and penalties collected, and except that
11the retailer's discount is not allowed for taxes paid on
12aviation fuel that are subject to the revenue use requirements
13of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
145d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
1510, 11, 12 and 13 of the Retailers' Occupation Tax Act and
16Section 3-7 of the Uniform Penalty and Interest Act, as fully
17as if those provisions were set forth herein.
18    No tax may be imposed by a home rule county pursuant to
19this Section unless the county also imposes a tax at the same
20rate pursuant to Section 5-1007.
21    Persons subject to any tax imposed pursuant to the
22authority granted in this Section may reimburse themselves for
23their seller's tax liability hereunder by separately stating
24such tax as an additional charge, which charge may be stated in
25combination, in a single amount, with State tax which sellers
26are required to collect under the Use Tax Act, pursuant to such

 

 

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1bracket schedules as the Department may prescribe.
2    Whenever the Department determines that a refund should be
3made under this Section to a claimant instead of issuing a
4credit memorandum, the Department shall notify the State
5Comptroller, who shall cause the order to be drawn for the
6amount specified and to the person named in the notification
7from the Department. The refund shall be paid by the State
8Treasurer out of the home rule county retailers' occupation
9tax fund or the Local Government Aviation Trust Fund, as
10appropriate.
11    Except as otherwise provided in this paragraph, the
12Department shall forthwith pay over to the State Treasurer, ex
13officio, as trustee, all taxes and penalties collected
14hereunder for deposit into the Home Rule County Retailers'
15Occupation Tax Fund. Taxes and penalties collected on aviation
16fuel sold on or after December 1, 2019, shall be immediately
17paid over by the Department to the State Treasurer, ex
18officio, as trustee, for deposit into the Local Government
19Aviation Trust Fund. The Department shall only pay moneys into
20the Local Government Aviation Trust Fund under this Section
21for so long as the revenue use requirements of 49 U.S.C.
2247107(b) and 49 U.S.C. 47133 are binding on the county.
23    As soon as possible after the first day of each month,
24beginning January 1, 2011, upon certification of the
25Department of Revenue, the Comptroller shall order
26transferred, and the Treasurer shall transfer, to the STAR

 

 

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1Bonds Revenue Fund the local sales tax increment, as defined
2in the Innovation Development and Economy Act, collected under
3this Section during the second preceding calendar month for
4sales within a STAR bond district.
5    After the monthly transfer to the STAR Bonds Revenue Fund,
6on or before the 25th day of each calendar month, the
7Department shall prepare and certify to the Comptroller the
8disbursement of stated sums of money to named counties, the
9counties to be those from which retailers have paid taxes or
10penalties hereunder to the Department during the second
11preceding calendar month. The amount to be paid to each county
12shall be the amount (not including credit memoranda and not
13including taxes and penalties collected on aviation fuel sold
14on or after December 1, 2019) collected hereunder during the
15second preceding calendar month by the Department plus an
16amount the Department determines is necessary to offset any
17amounts that were erroneously paid to a different taxing body,
18and not including an amount equal to the amount of refunds made
19during the second preceding calendar month by the Department
20on behalf of such county, and not including any amount which
21the Department determines is necessary to offset any amounts
22which were payable to a different taxing body but were
23erroneously paid to the county, and not including any amounts
24that are transferred to the STAR Bonds Revenue Fund, less 1.5%
25of the remainder, which the Department shall transfer into the
26Tax Compliance and Administration Fund. The Department, at the

 

 

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1time of each monthly disbursement to the counties, shall
2prepare and certify to the State Comptroller the amount to be
3transferred into the Tax Compliance and Administration Fund
4under this Section. Within 10 days after receipt, by the
5Comptroller, of the disbursement certification to the counties
6and the Tax Compliance and Administration Fund provided for in
7this Section to be given to the Comptroller by the Department,
8the Comptroller shall cause the orders to be drawn for the
9respective amounts in accordance with the directions contained
10in the certification.
11    In addition to the disbursement required by the preceding
12paragraph, an allocation shall be made in March of each year to
13each county that received more than $500,000 in disbursements
14under the preceding paragraph in the preceding calendar year.
15The allocation shall be in an amount equal to the average
16monthly distribution made to each such county under the
17preceding paragraph during the preceding calendar year
18(excluding the 2 months of highest receipts). The distribution
19made in March of each year subsequent to the year in which an
20allocation was made pursuant to this paragraph and the
21preceding paragraph shall be reduced by the amount allocated
22and disbursed under this paragraph in the preceding calendar
23year. The Department shall prepare and certify to the
24Comptroller for disbursement the allocations made in
25accordance with this paragraph.
26    For the purpose of determining the local governmental unit

 

 

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1whose tax is applicable, a retail sale by a producer of coal or
2other mineral mined in Illinois is a sale at retail at the
3place where the coal or other mineral mined in Illinois is
4extracted from the earth. This paragraph does not apply to
5coal or other mineral when it is delivered or shipped by the
6seller to the purchaser at a point outside Illinois so that the
7sale is exempt under the United States Constitution as a sale
8in interstate or foreign commerce.
9    Nothing in this Section shall be construed to authorize a
10county to impose a tax upon the privilege of engaging in any
11business which under the Constitution of the United States may
12not be made the subject of taxation by this State.
13    An ordinance or resolution imposing or discontinuing a tax
14hereunder or effecting a change in the rate thereof shall be
15adopted and a certified copy thereof filed with the Department
16on or before the first day of June, whereupon the Department
17shall proceed to administer and enforce this Section as of the
18first day of September next following such adoption and
19filing. Beginning January 1, 1992, an ordinance or resolution
20imposing or discontinuing the tax hereunder or effecting a
21change in the rate thereof shall be adopted and a certified
22copy thereof filed with the Department on or before the first
23day of July, whereupon the Department shall proceed to
24administer and enforce this Section as of the first day of
25October next following such adoption and filing. Beginning
26January 1, 1993, an ordinance or resolution imposing or

 

 

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1discontinuing the tax hereunder or effecting a change in the
2rate thereof shall be adopted and a certified copy thereof
3filed with the Department on or before the first day of
4October, whereupon the Department shall proceed to administer
5and enforce this Section as of the first day of January next
6following such adoption and filing. Beginning April 1, 1998,
7an ordinance or resolution imposing or discontinuing the tax
8hereunder or effecting a change in the rate thereof shall
9either (i) be adopted and a certified copy thereof filed with
10the Department on or before the first day of April, whereupon
11the Department shall proceed to administer and enforce this
12Section as of the first day of July next following the adoption
13and filing; or (ii) be adopted and a certified copy thereof
14filed with the Department on or before the first day of
15October, whereupon the Department shall proceed to administer
16and enforce this Section as of the first day of January next
17following the adoption and filing.
18    When certifying the amount of a monthly disbursement to a
19county under this Section, the Department shall increase or
20decrease such amount by an amount necessary to offset any
21misallocation of previous disbursements. The offset amount
22shall be the amount erroneously disbursed within the previous
236 months from the time a misallocation is discovered.
24    This Section shall be known and may be cited as the Home
25Rule County Retailers' Occupation Tax Law.
26(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;

 

 

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1100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
27-12-19; 101-604, eff. 12-13-19.)
 
3    (55 ILCS 5/5-1006.5)
4    Sec. 5-1006.5. Special County Retailers' Occupation Tax
5For Public Safety, Public Facilities, Mental Health, Substance
6Abuse, or Transportation.
7    (a) The county board of any county may impose a tax upon
8all persons engaged in the business of selling tangible
9personal property, other than personal property titled or
10registered with an agency of this State's government, at
11retail in the county on the gross receipts from the sales made
12in the course of business to provide revenue to be used
13exclusively for public safety, public facility, mental health,
14substance abuse, or transportation purposes in that county
15(except as otherwise provided in this Section), if a
16proposition for the tax has been submitted to the electors of
17that county and approved by a majority of those voting on the
18question. If imposed, this tax shall be imposed only in
19one-quarter percent increments. By resolution, the county
20board may order the proposition to be submitted at any
21election. If the tax is imposed for transportation purposes
22for expenditures for public highways or as authorized under
23the Illinois Highway Code, the county board must publish
24notice of the existence of its long-range highway
25transportation plan as required or described in Section 5-301

 

 

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1of the Illinois Highway Code and must make the plan publicly
2available prior to approval of the ordinance or resolution
3imposing the tax. If the tax is imposed for transportation
4purposes for expenditures for passenger rail transportation,
5the county board must publish notice of the existence of its
6long-range passenger rail transportation plan and must make
7the plan publicly available prior to approval of the ordinance
8or resolution imposing the tax.
9    If a tax is imposed for public facilities purposes, then
10the name of the project may be included in the proposition at
11the discretion of the county board as determined in the
12enabling resolution. For example, the "XXX Nursing Home" or
13the "YYY Museum".
14    The county clerk shall certify the question to the proper
15election authority, who shall submit the proposition at an
16election in accordance with the general election law.
17        (1) The proposition for public safety purposes shall
18    be in substantially the following form:
19        "To pay for public safety purposes, shall (name of
20    county) be authorized to impose an increase on its share
21    of local sales taxes by (insert rate)?"
22        As additional information on the ballot below the
23    question shall appear the following:
24        "This would mean that a consumer would pay an
25    additional (insert amount) in sales tax for every $100 of
26    tangible personal property bought at retail."

 

 

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1        The county board may also opt to establish a sunset
2    provision at which time the additional sales tax would
3    cease being collected, if not terminated earlier by a vote
4    of the county board. If the county board votes to include a
5    sunset provision, the proposition for public safety
6    purposes shall be in substantially the following form:
7        "To pay for public safety purposes, shall (name of
8    county) be authorized to impose an increase on its share
9    of local sales taxes by (insert rate) for a period not to
10    exceed (insert number of years)?"
11        As additional information on the ballot below the
12    question shall appear the following:
13        "This would mean that a consumer would pay an
14    additional (insert amount) in sales tax for every $100 of
15    tangible personal property bought at retail. If imposed,
16    the additional tax would cease being collected at the end
17    of (insert number of years), if not terminated earlier by
18    a vote of the county board."
19        For the purposes of the paragraph, "public safety
20    purposes" means crime prevention, detention, fire
21    fighting, police, medical, ambulance, or other emergency
22    services.
23        Votes shall be recorded as "Yes" or "No".
24        Beginning on the January 1 or July 1, whichever is
25    first, that occurs not less than 30 days after May 31, 2015
26    (the effective date of Public Act 99-4), Adams County may

 

 

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1    impose a public safety retailers' occupation tax and
2    service occupation tax at the rate of 0.25%, as provided
3    in the referendum approved by the voters on April 7, 2015,
4    notwithstanding the omission of the additional information
5    that is otherwise required to be printed on the ballot
6    below the question pursuant to this item (1).
7        (2) The proposition for transportation purposes shall
8    be in substantially the following form:
9        "To pay for improvements to roads and other
10    transportation purposes, shall (name of county) be
11    authorized to impose an increase on its share of local
12    sales taxes by (insert rate)?"
13        As additional information on the ballot below the
14    question shall appear the following:
15        "This would mean that a consumer would pay an
16    additional (insert amount) in sales tax for every $100 of
17    tangible personal property bought at retail."
18        The county board may also opt to establish a sunset
19    provision at which time the additional sales tax would
20    cease being collected, if not terminated earlier by a vote
21    of the county board. If the county board votes to include a
22    sunset provision, the proposition for transportation
23    purposes shall be in substantially the following form:
24        "To pay for road improvements and other transportation
25    purposes, shall (name of county) be authorized to impose
26    an increase on its share of local sales taxes by (insert

 

 

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1    rate) for a period not to exceed (insert number of
2    years)?"
3        As additional information on the ballot below the
4    question shall appear the following:
5        "This would mean that a consumer would pay an
6    additional (insert amount) in sales tax for every $100 of
7    tangible personal property bought at retail. If imposed,
8    the additional tax would cease being collected at the end
9    of (insert number of years), if not terminated earlier by
10    a vote of the county board."
11        For the purposes of this paragraph, transportation
12    purposes means construction, maintenance, operation, and
13    improvement of public highways, any other purpose for
14    which a county may expend funds under the Illinois Highway
15    Code, and passenger rail transportation.
16        The votes shall be recorded as "Yes" or "No".
17        (3) The proposition for public facilities purposes
18    shall be in substantially the following form:
19        "To pay for public facilities purposes, shall (name of
20    county) be authorized to impose an increase on its share
21    of local sales taxes by (insert rate)?"
22        As additional information on the ballot below the
23    question shall appear the following:
24        "This would mean that a consumer would pay an
25    additional (insert amount) in sales tax for every $100 of
26    tangible personal property bought at retail."

 

 

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1        The county board may also opt to establish a sunset
2    provision at which time the additional sales tax would
3    cease being collected, if not terminated earlier by a vote
4    of the county board. If the county board votes to include a
5    sunset provision, the proposition for public facilities
6    purposes shall be in substantially the following form:
7        "To pay for public facilities purposes, shall (name of
8    county) be authorized to impose an increase on its share
9    of local sales taxes by (insert rate) for a period not to
10    exceed (insert number of years)?"
11        As additional information on the ballot below the
12    question shall appear the following:
13        "This would mean that a consumer would pay an
14    additional (insert amount) in sales tax for every $100 of
15    tangible personal property bought at retail. If imposed,
16    the additional tax would cease being collected at the end
17    of (insert number of years), if not terminated earlier by
18    a vote of the county board."
19        For purposes of this Section, "public facilities
20    purposes" means the acquisition, development,
21    construction, reconstruction, rehabilitation,
22    improvement, financing, architectural planning, and
23    installation of capital facilities consisting of
24    buildings, structures, and durable equipment and for the
25    acquisition and improvement of real property and interest
26    in real property required, or expected to be required, in

 

 

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1    connection with the public facilities, for use by the
2    county for the furnishing of governmental services to its
3    citizens, including, but not limited to, museums and
4    nursing homes.
5        The votes shall be recorded as "Yes" or "No".
6        (4) The proposition for mental health purposes shall
7    be in substantially the following form:
8        "To pay for mental health purposes, shall (name of
9    county) be authorized to impose an increase on its share
10    of local sales taxes by (insert rate)?"
11        As additional information on the ballot below the
12    question shall appear the following:
13        "This would mean that a consumer would pay an
14    additional (insert amount) in sales tax for every $100 of
15    tangible personal property bought at retail."
16        The county board may also opt to establish a sunset
17    provision at which time the additional sales tax would
18    cease being collected, if not terminated earlier by a vote
19    of the county board. If the county board votes to include a
20    sunset provision, the proposition for public facilities
21    purposes shall be in substantially the following form:
22        "To pay for mental health purposes, shall (name of
23    county) be authorized to impose an increase on its share
24    of local sales taxes by (insert rate) for a period not to
25    exceed (insert number of years)?"
26        As additional information on the ballot below the

 

 

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1    question shall appear the following:
2        "This would mean that a consumer would pay an
3    additional (insert amount) in sales tax for every $100 of
4    tangible personal property bought at retail. If imposed,
5    the additional tax would cease being collected at the end
6    of (insert number of years), if not terminated earlier by
7    a vote of the county board."
8        The votes shall be recorded as "Yes" or "No".
9        (5) The proposition for substance abuse purposes shall
10    be in substantially the following form:
11        "To pay for substance abuse purposes, shall (name of
12    county) be authorized to impose an increase on its share
13    of local sales taxes by (insert rate)?"
14        As additional information on the ballot below the
15    question shall appear the following:
16        "This would mean that a consumer would pay an
17    additional (insert amount) in sales tax for every $100 of
18    tangible personal property bought at retail."
19        The county board may also opt to establish a sunset
20    provision at which time the additional sales tax would
21    cease being collected, if not terminated earlier by a vote
22    of the county board. If the county board votes to include a
23    sunset provision, the proposition for public facilities
24    purposes shall be in substantially the following form:
25        "To pay for substance abuse purposes, shall (name of
26    county) be authorized to impose an increase on its share

 

 

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1    of local sales taxes by (insert rate) for a period not to
2    exceed (insert number of years)?"
3        As additional information on the ballot below the
4    question shall appear the following:
5        "This would mean that a consumer would pay an
6    additional (insert amount) in sales tax for every $100 of
7    tangible personal property bought at retail. If imposed,
8    the additional tax would cease being collected at the end
9    of (insert number of years), if not terminated earlier by
10    a vote of the county board."
11        The votes shall be recorded as "Yes" or "No".
12    If a majority of the electors voting on the proposition
13vote in favor of it, the county may impose the tax. A county
14may not submit more than one proposition authorized by this
15Section to the electors at any one time.
16    This additional tax may not be imposed on tangible
17personal property taxed at the 1% rate under the Retailers'
18Occupation Tax Act (or at the 0% rate imposed under this
19amendatory Act of the 102nd General Assembly). Beginning
20December 1, 2019 and through December 31, 2020, this tax is not
21imposed on sales of aviation fuel unless the tax revenue is
22expended for airport-related purposes. If the county does not
23have an airport-related purpose to which it dedicates aviation
24fuel tax revenue, then aviation fuel is excluded from the tax.
25The county must comply with the certification requirements for
26airport-related purposes under Section 2-22 of the Retailers'

 

 

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1Occupation Tax Act. For purposes of this Section,
2"airport-related purposes" has the meaning ascribed in Section
36z-20.2 of the State Finance Act. Beginning January 1, 2021,
4this tax is not imposed on sales of aviation fuel 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 county. The tax imposed by a
7county under this Section and all civil penalties that may be
8assessed as an incident of the tax shall be collected and
9enforced by the Illinois Department of Revenue and deposited
10into a special fund created for that purpose. The certificate
11of registration that is issued by the Department to a retailer
12under the Retailers' Occupation Tax Act shall permit the
13retailer to engage in a business that is taxable without
14registering separately with the Department under an ordinance
15or resolution under this Section. The Department has full
16power to administer and enforce this Section, to collect all
17taxes and penalties due under this Section, to dispose of
18taxes and penalties so collected in the manner provided in
19this Section, and to determine all rights to credit memoranda
20arising on account of the erroneous payment of a tax or penalty
21under this Section. In the administration of and compliance
22with this Section, the Department and persons who are subject
23to this Section shall (i) have the same rights, remedies,
24privileges, immunities, powers, and duties, (ii) be subject to
25the same conditions, restrictions, limitations, penalties, and
26definitions of terms, and (iii) employ the same modes of

 

 

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1procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
21f, 1i, 1j, 1k, 1m, 1n, 2 through 2-70 (in respect to all
3provisions contained in those Sections other than the State
4rate of tax), 2a, 2b, 2c, 3 (except provisions relating to
5transaction returns and quarter monthly payments, and except
6that the retailer's discount is not allowed for taxes paid on
7aviation fuel that are deposited into the Local Government
8Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
95j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13
10of the Retailers' Occupation Tax Act and Section 3-7 of the
11Uniform Penalty and Interest Act as if those provisions were
12set forth in this Section.
13    Persons subject to any tax imposed under the authority
14granted in this Section may reimburse themselves for their
15sellers' tax liability by separately stating the tax as an
16additional charge, which charge may be stated in combination,
17in a single amount, with State tax which sellers are required
18to collect under the Use Tax Act, pursuant to such bracketed
19schedules as the Department may prescribe.
20    Whenever the Department determines that a refund should be
21made under this Section to a claimant instead of issuing a
22credit memorandum, the Department shall notify the State
23Comptroller, who shall cause the order to be drawn for the
24amount specified and to the person named in the notification
25from the Department. The refund shall be paid by the State
26Treasurer out of the County Public Safety, Public Facilities,

 

 

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1Mental Health, Substance Abuse, or Transportation Retailers'
2Occupation Tax Fund or the Local Government Aviation Trust
3Fund, as appropriate.
4    (b) If a tax has been imposed under subsection (a), a
5service occupation tax shall also be imposed at the same rate
6upon all persons engaged, in the county, in the business of
7making sales of service, who, as an incident to making those
8sales of service, transfer tangible personal property within
9the county as an incident to a sale of service. This tax may
10not be imposed on tangible personal property taxed at the 1%
11rate under the Service Occupation Tax Act (or at the 0% rate
12imposed under this amendatory Act of the 102nd General
13Assembly). Beginning December 1, 2019 and through December 31,
142020, this tax is not imposed on sales of aviation fuel unless
15the tax revenue is expended for airport-related purposes. If
16the county does not have an airport-related purpose to which
17it dedicates aviation fuel tax revenue, then aviation fuel is
18excluded from the tax. The county must comply with the
19certification requirements for airport-related purposes under
20Section 2-22 of the Retailers' Occupation Tax Act. For
21purposes of this Section, "airport-related purposes" has the
22meaning ascribed in Section 6z-20.2 of the State Finance Act.
23Beginning January 1, 2021, this tax is not imposed on sales of
24aviation fuel for so long as the revenue use requirements of 49
25U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
26The tax imposed under this subsection and all civil penalties

 

 

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1that may be assessed as an incident thereof shall be collected
2and enforced by the Department of Revenue. The Department has
3full power to administer and enforce this subsection; to
4collect all taxes and penalties due hereunder; to dispose of
5taxes and penalties so collected in the manner hereinafter
6provided; and to determine all rights to credit memoranda
7arising on account of the erroneous payment of tax or penalty
8hereunder. In the administration of and compliance with this
9subsection, the Department and persons who are subject to this
10paragraph shall (i) have the same rights, remedies,
11privileges, immunities, powers, and duties, (ii) be subject to
12the same conditions, restrictions, limitations, penalties,
13exclusions, exemptions, and definitions of terms, and (iii)
14employ the same modes of procedure as are prescribed in
15Sections 2 (except that the reference to State in the
16definition of supplier maintaining a place of business in this
17State shall mean the county), 2a, 2b, 2c, 3 through 3-50 (in
18respect to all provisions therein other than the State rate of
19tax), 4 (except that the reference to the State shall be to the
20county), 5, 7, 8 (except that the jurisdiction to which the tax
21shall be a debt to the extent indicated in that Section 8 shall
22be the county), 9 (except as to the disposition of taxes and
23penalties collected, and except that the retailer's discount
24is not allowed for taxes paid on aviation fuel that are
25deposited into the Local Government Aviation Trust Fund), 10,
2611, 12 (except the reference therein to Section 2b of the

 

 

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1Retailers' Occupation Tax Act), 13 (except that any reference
2to the State shall mean the county), Section 15, 16, 17, 18,
319, and 20 of the Service Occupation Tax Act, and Section 3-7
4of the Uniform Penalty and Interest Act, as fully as if those
5provisions were set forth herein.
6    Persons subject to any tax imposed under the authority
7granted in this subsection may reimburse themselves for their
8serviceman's tax liability by separately stating the tax as an
9additional charge, which charge may be stated in combination,
10in a single amount, with State tax that servicemen are
11authorized to collect under the Service Use Tax Act, in
12accordance with such bracket schedules as the Department may
13prescribe.
14    Whenever the Department determines that a refund should be
15made under this subsection to a claimant instead of issuing a
16credit memorandum, the Department shall notify the State
17Comptroller, who shall cause the warrant to be drawn for the
18amount specified, and to the person named, in the notification
19from the Department. The refund shall be paid by the State
20Treasurer out of the County Public Safety, Public Facilities,
21Mental Health, Substance Abuse, or Transportation Retailers'
22Occupation Fund or the Local Government Aviation Trust Fund,
23as appropriate.
24    Nothing in this subsection shall be construed to authorize
25the county to impose a tax upon the privilege of engaging in
26any business which under the Constitution of the United States

 

 

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1may not be made the subject of taxation by the State.
2    (c) Except as otherwise provided in this paragraph, the
3Department shall immediately pay over to the State Treasurer,
4ex officio, as trustee, all taxes and penalties collected
5under this Section to be deposited into the County Public
6Safety, Public Facilities, Mental Health, Substance Abuse, or
7Transportation Retailers' Occupation Tax Fund, which shall be
8an unappropriated trust fund held outside of the State
9treasury. Taxes and penalties collected on aviation fuel sold
10on or after December 1, 2019 and through December 31, 2020,
11shall be immediately paid over by the Department to the State
12Treasurer, ex officio, as trustee, for deposit into the Local
13Government Aviation Trust Fund. The Department shall only pay
14moneys into the Local Government Aviation Trust Fund under
15this Act for so long as the revenue use requirements of 49
16U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
17    As soon as possible after the first day of each month,
18beginning January 1, 2011, upon certification of the
19Department of Revenue, the Comptroller shall order
20transferred, and the Treasurer shall transfer, to the STAR
21Bonds Revenue Fund the local sales tax increment, as defined
22in the Innovation Development and Economy Act, collected under
23this Section during the second preceding calendar month for
24sales within a STAR bond district.
25    After the monthly transfer to the STAR Bonds Revenue Fund,
26on or before the 25th day of each calendar month, the

 

 

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1Department shall prepare and certify to the Comptroller the
2disbursement of stated sums of money to the counties from
3which retailers have paid taxes or penalties to the Department
4during the second preceding calendar month. The amount to be
5paid to each county, and deposited by the county into its
6special fund created for the purposes of this Section, shall
7be the amount (not including credit memoranda and not
8including taxes and penalties collected on aviation fuel sold
9on or after December 1, 2019 and through December 31, 2020)
10collected under this Section during the second preceding
11calendar month by the Department plus an amount the Department
12determines is necessary to offset any amounts that were
13erroneously paid to a different taxing body, and not including
14(i) an amount equal to the amount of refunds made during the
15second preceding calendar month by the Department on behalf of
16the county, (ii) any amount that the Department determines is
17necessary to offset any amounts that were payable to a
18different taxing body but were erroneously paid to the county,
19(iii) any amounts that are transferred to the STAR Bonds
20Revenue Fund, and (iv) 1.5% of the remainder, which shall be
21transferred into the Tax Compliance and Administration Fund.
22The Department, at the time of each monthly disbursement to
23the counties, shall prepare and certify to the State
24Comptroller the amount to be transferred into the Tax
25Compliance and Administration Fund under this subsection.
26Within 10 days after receipt by the Comptroller of the

 

 

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1disbursement certification to the counties and the Tax
2Compliance and Administration Fund provided for in this
3Section to be given to the Comptroller by the Department, the
4Comptroller shall cause the orders to be drawn for the
5respective amounts in accordance with directions contained in
6the certification.
7    In addition to the disbursement required by the preceding
8paragraph, an allocation shall be made in March of each year to
9each county that received more than $500,000 in disbursements
10under the preceding paragraph in the preceding calendar year.
11The allocation shall be in an amount equal to the average
12monthly distribution made to each such county under the
13preceding paragraph during the preceding calendar year
14(excluding the 2 months of highest receipts). The distribution
15made in March of each year subsequent to the year in which an
16allocation was made pursuant to this paragraph and the
17preceding paragraph shall be reduced by the amount allocated
18and disbursed under this paragraph in the preceding calendar
19year. The Department shall prepare and certify to the
20Comptroller for disbursement the allocations made in
21accordance with this paragraph.
22    (d) For the purpose of determining the local governmental
23unit whose tax is applicable, a retail sale by a producer of
24coal or another mineral mined in Illinois is a sale at retail
25at the place where the coal or other mineral mined in Illinois
26is extracted from the earth. This paragraph does not apply to

 

 

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1coal or another mineral when it is delivered or shipped by the
2seller to the purchaser at a point outside Illinois so that the
3sale is exempt under the United States Constitution as a sale
4in interstate or foreign commerce.
5    (e) Nothing in this Section shall be construed to
6authorize a county to impose a tax upon the privilege of
7engaging in any business that under the Constitution of the
8United States may not be made the subject of taxation by this
9State.
10    (e-5) If a county imposes a tax under this Section, the
11county board may, by ordinance, discontinue or lower the rate
12of the tax. If the county board lowers the tax rate or
13discontinues the tax, a referendum must be held in accordance
14with subsection (a) of this Section in order to increase the
15rate of the tax or to reimpose the discontinued tax.
16    (f) Beginning April 1, 1998 and through December 31, 2013,
17the results of any election authorizing a proposition to
18impose a tax under this Section or effecting a change in the
19rate of tax, or any ordinance lowering the rate or
20discontinuing the tax, shall be certified by the county clerk
21and filed with the Illinois Department of Revenue either (i)
22on or before the first day of April, whereupon the Department
23shall proceed to administer and enforce the tax as of the first
24day of July next following the filing; or (ii) on or before the
25first day of October, whereupon the Department shall proceed
26to administer and enforce the tax as of the first day of

 

 

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1January next following the filing.
2    Beginning January 1, 2014, the results of any election
3authorizing a proposition to impose a tax under this Section
4or effecting an increase in the rate of tax, along with the
5ordinance adopted to impose the tax or increase the rate of the
6tax, or any ordinance adopted to lower the rate or discontinue
7the tax, shall be certified by the county clerk and filed with
8the Illinois Department of Revenue either (i) on or before the
9first day of May, whereupon the Department shall proceed to
10administer and enforce the tax as of the first day of July next
11following the adoption and filing; or (ii) on or before the
12first day of October, whereupon the Department shall proceed
13to administer and enforce the tax as of the first day of
14January next following the adoption and filing.
15    (g) When certifying the amount of a monthly disbursement
16to a county under this Section, the Department shall increase
17or decrease the amounts by an amount necessary to offset any
18miscalculation of previous disbursements. The offset amount
19shall be the amount erroneously disbursed within the previous
206 months from the time a miscalculation is discovered.
21    (g-5) Every county authorized to levy a tax under this
22Section shall, before it levies such tax, establish a 7-member
23mental health board, which shall have the same powers and
24duties and be constituted in the same manner as a community
25mental health board established under the Community Mental
26Health Act. Proceeds of the tax under this Section that are

 

 

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1earmarked for mental health or substance abuse purposes shall
2be deposited into a special county occupation tax fund for
3mental health and substance abuse. The 7-member mental health
4board established under this subsection shall administer the
5special county occupation tax fund for mental health and
6substance abuse in the same manner as the community mental
7health board administers the community mental health fund
8under the Community Mental Health Act.
9    (h) This Section may be cited as the "Special County
10Occupation Tax For Public Safety, Public Facilities, Mental
11Health, Substance Abuse, or Transportation Law".
12    (i) For purposes of this Section, "public safety"
13includes, but is not limited to, crime prevention, detention,
14fire fighting, police, medical, ambulance, or other emergency
15services. The county may share tax proceeds received under
16this Section for public safety purposes, including proceeds
17received before August 4, 2009 (the effective date of Public
18Act 96-124), with any fire protection district located in the
19county. For the purposes of this Section, "transportation"
20includes, but is not limited to, the construction,
21maintenance, operation, and improvement of public highways,
22any other purpose for which a county may expend funds under the
23Illinois Highway Code, and passenger rail transportation. For
24the purposes of this Section, "public facilities purposes"
25includes, but is not limited to, the acquisition, development,
26construction, reconstruction, rehabilitation, improvement,

 

 

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1financing, architectural planning, and installation of capital
2facilities consisting of buildings, structures, and durable
3equipment and for the acquisition and improvement of real
4property and interest in real property required, or expected
5to be required, in connection with the public facilities, for
6use by the county for the furnishing of governmental services
7to its citizens, including, but not limited to, museums and
8nursing homes.
9    (j) The Department may promulgate rules to implement
10Public Act 95-1002 only to the extent necessary to apply the
11existing rules for the Special County Retailers' Occupation
12Tax for Public Safety to this new purpose for public
13facilities.
14(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
15101-275, eff. 8-9-19; 101-604, eff. 12-13-19; 102-379, eff.
161-1-22.)
 
17    (55 ILCS 5/5-1006.7)
18    Sec. 5-1006.7. School facility and resources occupation
19taxes.
20    (a) In any county, a tax shall be imposed upon all persons
21engaged in the business of selling tangible personal property,
22other than personal property titled or registered with an
23agency of this State's government, at retail in the county on
24the gross receipts from the sales made in the course of
25business to provide revenue to be used exclusively for (i)

 

 

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1school facility purposes (except as otherwise provided in this
2Section), (ii) school resource officers and mental health
3professionals, or (iii) school facility purposes, school
4resource officers, and mental health professionals if a
5proposition for the tax has been submitted to the electors of
6that county and approved by a majority of those voting on the
7question as provided in subsection (c). The tax under this
8Section shall be imposed only in one-quarter percent
9increments and may not exceed 1%.
10    This additional tax may not be imposed on tangible
11personal property taxed at the 1% rate under the Retailers'
12Occupation Tax Act (or at the 0% rate imposed under this
13amendatory Act of the 102nd General Assembly). Beginning
14December 1, 2019 and through December 31, 2020, this tax is not
15imposed on sales of aviation fuel unless the tax revenue is
16expended for airport-related purposes. If the county does not
17have an airport-related purpose to which it dedicates aviation
18fuel tax revenue, then aviation fuel is excluded from the tax.
19The county must comply with the certification requirements for
20airport-related purposes under Section 2-22 of the Retailers'
21Occupation Tax Act. For purposes of this Section,
22"airport-related purposes" has the meaning ascribed in Section
236z-20.2 of the State Finance Act. Beginning January 1, 2021,
24this tax is not imposed on sales of aviation fuel for so long
25as the revenue use requirements of 49 U.S.C. 47107(b) and 49
26U.S.C. 47133 are binding on the county. The Department of

 

 

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1Revenue has full power to administer and enforce this
2subsection, to collect all taxes and penalties due under this
3subsection, to dispose of taxes and penalties so collected in
4the manner provided in this subsection, and to determine all
5rights to credit memoranda arising on account of the erroneous
6payment of a tax or penalty under this subsection. The
7Department shall deposit all taxes and penalties collected
8under this subsection into a special fund created for that
9purpose.
10    In the administration of and compliance with this
11subsection, the Department and persons who are subject to this
12subsection (i) have the same rights, remedies, privileges,
13immunities, powers, and duties, (ii) are subject to the same
14conditions, restrictions, limitations, penalties, and
15definitions of terms, and (iii) shall employ the same modes of
16procedure as are set forth in Sections 1 through 1o, 2 through
172-70 (in respect to all provisions contained in those Sections
18other than the State rate of tax), 2a through 2h, 3 (except as
19to the disposition of taxes and penalties collected, and
20except that the retailer's discount is not allowed for taxes
21paid on aviation fuel that are subject to the revenue use
22requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
235a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c,
246d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
25Occupation Tax Act and all provisions of the Uniform Penalty
26and Interest Act as if those provisions were set forth in this

 

 

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1subsection.
2    The certificate of registration that is issued by the
3Department to a retailer under the Retailers' Occupation Tax
4Act permits the retailer to engage in a business that is
5taxable without registering separately with the Department
6under an ordinance or resolution under this subsection.
7    Persons subject to any tax imposed under the authority
8granted in this subsection may reimburse themselves for their
9seller's tax liability by separately stating that tax as an
10additional charge, which may be stated in combination, in a
11single amount, with State tax that sellers are required to
12collect under the Use Tax Act, pursuant to any bracketed
13schedules set forth by the Department.
14    (b) If a tax has been imposed under subsection (a), then a
15service occupation tax must also be imposed at the same rate
16upon all persons engaged, in the county, in the business of
17making sales of service, who, as an incident to making those
18sales of service, transfer tangible personal property within
19the county as an incident to a sale of service.
20    This tax may not be imposed on tangible personal property
21taxed at the 1% rate under the Service Occupation Tax Act (or
22at the 0% rate imposed under this amendatory Act of the 102nd
23General Assembly). Beginning December 1, 2019 and through
24December 31, 2020, this tax is not imposed on sales of aviation
25fuel unless the tax revenue is expended for airport-related
26purposes. If the county does not have an airport-related

 

 

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1purpose to which it dedicates aviation fuel tax revenue, then
2aviation fuel is excluded from the tax. The county must comply
3with the certification requirements for airport-related
4purposes under Section 2-22 of the Retailers' Occupation Tax
5Act. For purposes of this Section, "airport-related purposes"
6has the meaning ascribed in Section 6z-20.2 of the State
7Finance Act. Beginning January 1, 2021, this tax is not
8imposed on sales of aviation fuel for so long as the revenue
9use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
10binding on the county.
11    The tax imposed under this subsection and all civil
12penalties that may be assessed as an incident thereof shall be
13collected and enforced by the Department and deposited into a
14special fund created for that purpose. The Department has full
15power to administer and enforce this subsection, to collect
16all taxes and penalties due under this subsection, to dispose
17of taxes and penalties so collected in the manner provided in
18this subsection, and to determine all rights to credit
19memoranda arising on account of the erroneous payment of a tax
20or penalty under this subsection.
21    In the administration of and compliance with this
22subsection, the Department and persons who are subject to this
23subsection shall (i) have the same rights, remedies,
24privileges, immunities, powers and duties, (ii) be subject to
25the same conditions, restrictions, limitations, penalties and
26definition of terms, and (iii) employ the same modes of

 

 

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1procedure as are set forth in Sections 2 (except that that
2reference to State in the definition of supplier maintaining a
3place of business in this State means the county), 2a through
42d, 3 through 3-50 (in respect to all provisions contained in
5those Sections other than the State rate of tax), 4 (except
6that the reference to the State shall be to the county), 5, 7,
78 (except that the jurisdiction to which the tax is a debt to
8the extent indicated in that Section 8 is the county), 9
9(except as to the disposition of taxes and penalties
10collected, and except that the retailer's discount is not
11allowed for taxes paid on aviation fuel that are subject to the
12revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1347133), 10, 11, 12 (except the reference therein to Section 2b
14of the Retailers' Occupation Tax Act), 13 (except that any
15reference to the State means the county), Section 15, 16, 17,
1618, 19, and 20 of the Service Occupation Tax Act and all
17provisions of the Uniform Penalty and Interest Act, as fully
18as if those provisions were set forth herein.
19    Persons subject to any tax imposed under the authority
20granted in this subsection may reimburse themselves for their
21serviceman's tax liability by separately stating the tax as an
22additional charge, which may be stated in combination, in a
23single amount, with State tax that servicemen are authorized
24to collect under the Service Use Tax Act, pursuant to any
25bracketed schedules set forth by the Department.
26    (c) The tax under this Section may not be imposed until the

 

 

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1question of imposing the tax has been submitted to the
2electors of the county at a regular election and approved by a
3majority of the electors voting on the question. For all
4regular elections held prior to August 23, 2011 (the effective
5date of Public Act 97-542), upon a resolution by the county
6board or a resolution by school district boards that represent
7at least 51% of the student enrollment within the county, the
8county board must certify the question to the proper election
9authority in accordance with the Election Code.
10    For all regular elections held prior to August 23, 2011
11(the effective date of Public Act 97-542), the election
12authority must submit the question in substantially the
13following form:
14        Shall (name of county) be authorized to impose a
15    retailers' occupation tax and a service occupation tax
16    (commonly referred to as a "sales tax") at a rate of
17    (insert rate) to be used exclusively for school facility
18    purposes?
19    The election authority must record the votes as "Yes" or
20"No".
21    If a majority of the electors voting on the question vote
22in the affirmative, then the county may, thereafter, impose
23the tax.
24    For all regular elections held on or after August 23, 2011
25(the effective date of Public Act 97-542), the regional
26superintendent of schools for the county must, upon receipt of

 

 

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1a resolution or resolutions of school district boards that
2represent more than 50% of the student enrollment within the
3county, certify the question to the proper election authority
4for submission to the electors of the county at the next
5regular election at which the question lawfully may be
6submitted to the electors, all in accordance with the Election
7Code.
8    For all regular elections held on or after August 23, 2011
9(the effective date of Public Act 97-542) and before August
1023, 2019 (the effective date of Public Act 101-455), the
11election authority must submit the question in substantially
12the following form:
13        Shall a retailers' occupation tax and a service
14    occupation tax (commonly referred to as a "sales tax") be
15    imposed in (name of county) at a rate of (insert rate) to
16    be used exclusively for school facility purposes?
17    The election authority must record the votes as "Yes" or
18"No".
19    If a majority of the electors voting on the question vote
20in the affirmative, then the tax shall be imposed at the rate
21set forth in the question.
22    For all regular elections held on or after August 23, 2019
23(the effective date of Public Act 101-455), the election
24authority must submit the question as follows:
25        (1) If the referendum is to expand the use of revenues
26    from a currently imposed tax exclusively for school

 

 

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1    facility purposes to include school resource officers and
2    mental health professionals, the question shall be in
3    substantially the following form:
4            In addition to school facility purposes, shall
5        (name of county) school districts be authorized to use
6        revenues from the tax commonly referred to as the
7        school facility sales tax that is currently imposed in
8        (name of county) at a rate of (insert rate) for school
9        resource officers and mental health professionals?
10        (2) If the referendum is to increase the rate of a tax
11    currently imposed exclusively for school facility purposes
12    at less than 1% and dedicate the additional revenues for
13    school resource officers and mental health professionals,
14    the question shall be in substantially the following form:
15            Shall the tax commonly referred to as the school
16        facility sales tax that is currently imposed in (name
17        of county) at the rate of (insert rate) be increased to
18        a rate of (insert rate) with the additional revenues
19        used exclusively for school resource officers and
20        mental health professionals?
21        (3) If the referendum is to impose a tax in a county
22    that has not previously imposed a tax under this Section
23    exclusively for school facility purposes, the question
24    shall be in substantially the following form:
25            Shall a retailers' occupation tax and a service
26        occupation tax (commonly referred to as a sales tax)

 

 

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1        be imposed in (name of county) at a rate of (insert
2        rate) to be used exclusively for school facility
3        purposes?
4        (4) If the referendum is to impose a tax in a county
5    that has not previously imposed a tax under this Section
6    exclusively for school resource officers and mental health
7    professionals, the question shall be in substantially the
8    following form:
9            Shall a retailers' occupation tax and a service
10        occupation tax (commonly referred to as a sales tax)
11        be imposed in (name of county) at a rate of (insert
12        rate) to be used exclusively for school resource
13        officers and mental health professionals?
14        (5) If the referendum is to impose a tax in a county
15    that has not previously imposed a tax under this Section
16    exclusively for school facility purposes, school resource
17    officers, and mental health professionals, the question
18    shall be in substantially the following form:
19            Shall a retailers' occupation tax and a service
20        occupation tax (commonly referred to as a sales tax)
21        be imposed in (name of county) at a rate of (insert
22        rate) to be used exclusively for school facility
23        purposes, school resource officers, and mental health
24        professionals?
25    The election authority must record the votes as "Yes" or
26"No".

 

 

10200HB1539sam001- 406 -LRB102 03555 HLH 39048 a

1    If a majority of the electors voting on the question vote
2in the affirmative, then the tax shall be imposed at the rate
3set forth in the question.
4    For the purposes of this subsection (c), "enrollment"
5means the head count of the students residing in the county on
6the last school day of September of each year, which must be
7reported on the Illinois State Board of Education Public
8School Fall Enrollment/Housing Report.
9    (d) Except as otherwise provided, the Department shall
10immediately pay over to the State Treasurer, ex officio, as
11trustee, all taxes and penalties collected under this Section
12to be deposited into the School Facility Occupation Tax Fund,
13which shall be an unappropriated trust fund held outside the
14State treasury. Taxes and penalties collected on aviation fuel
15sold on or after December 1, 2019 and through December 31,
162020, shall be immediately paid over by the Department to the
17State Treasurer, ex officio, as trustee, for deposit into the
18Local Government Aviation Trust Fund. The Department shall
19only pay moneys into the Local Government Aviation Trust Fund
20under this Section for so long as the revenue use requirements
21of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
22county.
23    On or before the 25th day of each calendar month, the
24Department shall prepare and certify to the Comptroller the
25disbursement of stated sums of money to the regional
26superintendents of schools in counties from which retailers or

 

 

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1servicemen have paid taxes or penalties to the Department
2during the second preceding calendar month. The amount to be
3paid to each regional superintendent of schools and disbursed
4to him or her in accordance with Section 3-14.31 of the School
5Code, is equal to the amount (not including credit memoranda
6and not including taxes and penalties collected on aviation
7fuel sold on or after December 1, 2019 and through December 31,
82020) collected from the county under this Section during the
9second preceding calendar month by the Department, (i) less 2%
10of that amount (except the amount collected on aviation fuel
11sold on or after December 1, 2019 and through December 31,
122020), which shall be deposited into the Tax Compliance and
13Administration Fund and shall be used by the Department,
14subject to appropriation, to cover the costs of the Department
15in administering and enforcing the provisions of this Section,
16on behalf of the county, (ii) plus an amount that the
17Department determines is necessary to offset any amounts that
18were erroneously paid to a different taxing body; (iii) less
19an amount equal to the amount of refunds made during the second
20preceding calendar month by the Department on behalf of the
21county; and (iv) less any amount that the Department
22determines is necessary to offset any amounts that were
23payable to a different taxing body but were erroneously paid
24to the county. When certifying the amount of a monthly
25disbursement to a regional superintendent of schools under
26this Section, the Department shall increase or decrease the

 

 

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1amounts by an amount necessary to offset any miscalculation of
2previous disbursements within the previous 6 months from the
3time a miscalculation is discovered.
4    Within 10 days after receipt by the Comptroller from the
5Department of the disbursement certification to the regional
6superintendents of the schools provided for in this Section,
7the Comptroller shall cause the orders to be drawn for the
8respective amounts in accordance with directions contained in
9the certification.
10    If the Department determines that a refund should be made
11under this Section to a claimant instead of issuing a credit
12memorandum, then the Department shall notify the Comptroller,
13who shall cause the order to be drawn for the amount specified
14and to the person named in the notification from the
15Department. The refund shall be paid by the Treasurer out of
16the School Facility Occupation Tax Fund or the Local
17Government Aviation Trust Fund, as appropriate.
18    (e) For the purposes of determining the local governmental
19unit whose tax is applicable, a retail sale by a producer of
20coal or another mineral mined in Illinois is a sale at retail
21at the place where the coal or other mineral mined in Illinois
22is extracted from the earth. This subsection does not apply to
23coal or another mineral when it is delivered or shipped by the
24seller to the purchaser at a point outside Illinois so that the
25sale is exempt under the United States Constitution as a sale
26in interstate or foreign commerce.

 

 

10200HB1539sam001- 409 -LRB102 03555 HLH 39048 a

1    (f) Nothing in this Section may be construed to authorize
2a tax to be imposed upon the privilege of engaging in any
3business that under the Constitution of the United States may
4not be made the subject of taxation by this State.
5    (g) If a county board imposes a tax under this Section
6pursuant to a referendum held before August 23, 2011 (the
7effective date of Public Act 97-542) at a rate below the rate
8set forth in the question approved by a majority of electors of
9that county voting on the question as provided in subsection
10(c), then the county board may, by ordinance, increase the
11rate of the tax up to the rate set forth in the question
12approved by a majority of electors of that county voting on the
13question as provided in subsection (c). If a county board
14imposes a tax under this Section pursuant to a referendum held
15before August 23, 2011 (the effective date of Public Act
1697-542), then the board may, by ordinance, discontinue or
17reduce the rate of the tax. If a tax is imposed under this
18Section pursuant to a referendum held on or after August 23,
192011 (the effective date of Public Act 97-542) and before
20August 23, 2019 (the effective date of Public Act 101-455),
21then the county board may reduce or discontinue the tax, but
22only in accordance with subsection (h-5) of this Section. If a
23tax is imposed under this Section pursuant to a referendum
24held on or after August 23, 2019 (the effective date of Public
25Act 101-455), then the county board may reduce or discontinue
26the tax, but only in accordance with subsection (h-10). If,

 

 

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1however, a school board issues bonds that are secured by the
2proceeds of the tax under this Section, then the county board
3may not reduce the tax rate or discontinue the tax if that rate
4reduction or discontinuance would adversely affect the school
5board's ability to pay the principal and interest on those
6bonds as they become due or necessitate the extension of
7additional property taxes to pay the principal and interest on
8those bonds. If the county board reduces the tax rate or
9discontinues the tax, then a referendum must be held in
10accordance with subsection (c) of this Section in order to
11increase the rate of the tax or to reimpose the discontinued
12tax.
13    Until January 1, 2014, the results of any election that
14imposes, reduces, or discontinues a tax under this Section
15must be certified by the election authority, and any ordinance
16that increases or lowers the rate or discontinues the tax must
17be certified by the county clerk and, in each case, filed with
18the Illinois Department of Revenue either (i) on or before the
19first day of April, whereupon the Department shall proceed to
20administer and enforce the tax or change in the rate as of the
21first day of July next following the filing; or (ii) on or
22before the first day of October, whereupon the Department
23shall proceed to administer and enforce the tax or change in
24the rate as of the first day of January next following the
25filing.
26    Beginning January 1, 2014, the results of any election

 

 

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1that imposes, reduces, or discontinues a tax under this
2Section must be certified by the election authority, and any
3ordinance that increases or lowers the rate or discontinues
4the tax must be certified by the county clerk and, in each
5case, filed with the Illinois Department of Revenue either (i)
6on or before the first day of May, whereupon the Department
7shall proceed to administer and enforce the tax or change in
8the rate as of the first day of July next following the filing;
9or (ii) on or before the first day of October, whereupon the
10Department shall proceed to administer and enforce the tax or
11change in the rate as of the first day of January next
12following the filing.
13    (h) For purposes of this Section, "school facility
14purposes" means (i) the acquisition, development,
15construction, reconstruction, rehabilitation, improvement,
16financing, architectural planning, and installation of capital
17facilities consisting of buildings, structures, and durable
18equipment and for the acquisition and improvement of real
19property and interest in real property required, or expected
20to be required, in connection with the capital facilities and
21(ii) the payment of bonds or other obligations heretofore or
22hereafter issued, including bonds or other obligations
23heretofore or hereafter issued to refund or to continue to
24refund bonds or other obligations issued, for school facility
25purposes, provided that the taxes levied to pay those bonds
26are abated by the amount of the taxes imposed under this

 

 

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1Section that are used to pay those bonds. "School facility
2purposes" also includes fire prevention, safety, energy
3conservation, accessibility, school security, and specified
4repair purposes set forth under Section 17-2.11 of the School
5Code.
6    (h-5) A county board in a county where a tax has been
7imposed under this Section pursuant to a referendum held on or
8after August 23, 2011 (the effective date of Public Act
997-542) and before August 23, 2019 (the effective date of
10Public Act 101-455) may, by ordinance or resolution, submit to
11the voters of the county the question of reducing or
12discontinuing the tax. In the ordinance or resolution, the
13county board shall certify the question to the proper election
14authority in accordance with the Election Code. The election
15authority must submit the question in substantially the
16following form:
17        Shall the school facility retailers' occupation tax
18    and service occupation tax (commonly referred to as the
19    "school facility sales tax") currently imposed in (name of
20    county) at a rate of (insert rate) be (reduced to (insert
21    rate))(discontinued)?
22If a majority of the electors voting on the question vote in
23the affirmative, then, subject to the provisions of subsection
24(g) of this Section, the tax shall be reduced or discontinued
25as set forth in the question.
26    (h-10) A county board in a county where a tax has been

 

 

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1imposed under this Section pursuant to a referendum held on or
2after August 23, 2019 (the effective date of Public Act
3101-455) may, by ordinance or resolution, submit to the voters
4of the county the question of reducing or discontinuing the
5tax. In the ordinance or resolution, the county board shall
6certify the question to the proper election authority in
7accordance with the Election Code. The election authority must
8submit the question in substantially the following form:
9        Shall the school facility and resources retailers'
10    occupation tax and service occupation tax (commonly
11    referred to as the school facility and resources sales
12    tax) currently imposed in (name of county) at a rate of
13    (insert rate) be (reduced to (insert rate))
14    (discontinued)?
15    The election authority must record the votes as "Yes" or
16"No".
17    If a majority of the electors voting on the question vote
18in the affirmative, then, subject to the provisions of
19subsection (g) of this Section, the tax shall be reduced or
20discontinued as set forth in the question.
21    (i) This Section does not apply to Cook County.
22    (j) This Section may be cited as the County School
23Facility and Resources Occupation Tax Law.
24(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19;
25101-455, eff. 8-23-19; 101-604, eff. 12-13-19.)
 

 

 

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1    (55 ILCS 5/5-1007)  (from Ch. 34, par. 5-1007)
2    Sec. 5-1007. Home Rule County Service Occupation Tax Law.
3The corporate authorities of a home rule county may impose a
4tax upon all persons engaged, in such county, in the business
5of making sales of service at the same rate of tax imposed
6pursuant to Section 5-1006 of the selling price of all
7tangible personal property transferred by such servicemen
8either in the form of tangible personal property or in the form
9of real estate as an incident to a sale of service. If imposed,
10such tax shall only be imposed in 1/4% increments. On and after
11September 1, 1991, this additional tax may not be imposed on
12tangible personal property taxed at the 1% rate under the
13Service Occupation Tax Act (or at the 0% rate imposed under
14this amendatory Act of the 102nd General Assembly). Beginning
15December 1, 2019, this tax is not imposed on sales of aviation
16fuel unless the tax revenue is expended for airport-related
17purposes. If the county does not have an airport-related
18purpose to which it dedicates aviation fuel tax revenue, then
19aviation fuel is excluded from the tax. The county must comply
20with the certification requirements for airport-related
21purposes under Section 2-22 of the Retailers' Occupation Tax
22Act. For purposes of this Section, "airport-related purposes"
23has the meaning ascribed in Section 6z-20.2 of the State
24Finance Act. This exclusion for aviation fuel only applies for
25so long as the revenue use requirements of 49 U.S.C. 47107(b)
26and 49 U.S.C. 47133 are binding on the county. The changes made

 

 

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1to this Section by this amendatory Act of the 101st General
2Assembly are a denial and limitation of home rule powers and
3functions under subsection (g) of Section 6 of Article VII of
4the Illinois Constitution. The tax imposed by a home rule
5county pursuant to this Section and all civil penalties that
6may be assessed as an incident thereof shall be collected and
7enforced by the State Department of Revenue. The certificate
8of registration which is issued by the Department to a
9retailer under the Retailers' Occupation Tax Act or under the
10Service Occupation Tax Act shall permit such registrant to
11engage in a business which is taxable under any ordinance or
12resolution enacted pursuant to this Section without
13registering separately with the Department under such
14ordinance or resolution or under this Section. The Department
15shall have full power to administer and enforce this Section;
16to collect all taxes and penalties due hereunder; to dispose
17of taxes and penalties so collected in the manner hereinafter
18provided; and to determine all rights to credit memoranda
19arising on account of the erroneous payment of tax or penalty
20hereunder. In the administration of, and compliance with, this
21Section the Department and persons who are subject to this
22Section shall have the same rights, remedies, privileges,
23immunities, powers and duties, and be subject to the same
24conditions, restrictions, limitations, penalties and
25definitions of terms, and employ the same modes of procedure,
26as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in

 

 

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1respect to all provisions therein other than the State rate of
2tax), 4 (except that the reference to the State shall be to the
3taxing county), 5, 7, 8 (except that the jurisdiction to which
4the tax shall be a debt to the extent indicated in that Section
58 shall be the taxing county), 9 (except as to the disposition
6of taxes and penalties collected, and except that the returned
7merchandise credit for this county tax may not be taken
8against any State tax, and except that the retailer's discount
9is not allowed for taxes paid on aviation fuel that are subject
10to the revenue use requirements of 49 U.S.C. 47107(b) and 49
11U.S.C. 47133), 10, 11, 12 (except the reference therein to
12Section 2b of the Retailers' Occupation Tax Act), 13 (except
13that any reference to the State shall mean the taxing county),
14the first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
15Service Occupation Tax Act and Section 3-7 of the Uniform
16Penalty and Interest Act, as fully as if those provisions were
17set forth herein.
18    No tax may be imposed by a home rule county pursuant to
19this Section unless such county also imposes a tax at the same
20rate pursuant to Section 5-1006.
21    Persons subject to any tax imposed pursuant to the
22authority granted in this Section may reimburse themselves for
23their serviceman's tax liability hereunder by separately
24stating such tax as an additional charge, which charge may be
25stated in combination, in a single amount, with State tax
26which servicemen are authorized to collect under the Service

 

 

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1Use Tax Act, pursuant to such bracket schedules as the
2Department may prescribe.
3    Whenever the Department determines that a refund should be
4made under this Section to a claimant instead of issuing
5credit memorandum, the Department shall notify the State
6Comptroller, who shall cause the order to be drawn for the
7amount specified, and to the person named, in such
8notification from the Department. Such refund shall be paid by
9the State Treasurer out of the home rule county retailers'
10occupation tax fund or the Local Government Aviation Trust
11Fund, as appropriate.
12    Except as otherwise provided in this paragraph, the
13Department shall forthwith pay over to the State Treasurer, ex
14officio, as trustee, all taxes and penalties collected
15hereunder for deposit into the Home Rule County Retailers'
16Occupation Tax Fund. Taxes and penalties collected on aviation
17fuel sold on or after December 1, 2019, shall be immediately
18paid over by the Department to the State Treasurer, ex
19officio, as trustee, for deposit into the Local Government
20Aviation Trust Fund. The Department shall only pay moneys into
21the Local Government Aviation Trust Fund under this Section
22for so long as the revenue use requirements of 49 U.S.C.
2347107(b) and 49 U.S.C. 47133 are binding on the county.
24    As soon as possible after the first day of each month,
25beginning January 1, 2011, upon certification of the
26Department of Revenue, the Comptroller shall order

 

 

10200HB1539sam001- 418 -LRB102 03555 HLH 39048 a

1transferred, and the Treasurer shall transfer, to the STAR
2Bonds Revenue Fund the local sales tax increment, as defined
3in the Innovation Development and Economy Act, collected under
4this Section during the second preceding calendar month for
5sales within a STAR bond district.
6    After the monthly transfer to the STAR Bonds Revenue Fund,
7on or before the 25th day of each calendar month, the
8Department shall prepare and certify to the Comptroller the
9disbursement of stated sums of money to named counties, the
10counties to be those from which suppliers and servicemen have
11paid taxes or penalties hereunder to the Department during the
12second preceding calendar month. The amount to be paid to each
13county shall be the amount (not including credit memoranda and
14not including taxes and penalties collected on aviation fuel
15sold on or after December 1, 2019) collected hereunder during
16the second preceding calendar month by the Department, and not
17including an amount equal to the amount of refunds made during
18the second preceding calendar month by the Department on
19behalf of such county, and not including any amounts that are
20transferred to the STAR Bonds Revenue Fund, less 1.5% of the
21remainder, which the Department shall transfer into the Tax
22Compliance and Administration Fund. The Department, at the
23time of each monthly disbursement to the counties, shall
24prepare and certify to the State Comptroller the amount to be
25transferred into the Tax Compliance and Administration Fund
26under this Section. Within 10 days after receipt, by the

 

 

10200HB1539sam001- 419 -LRB102 03555 HLH 39048 a

1Comptroller, of the disbursement certification to the counties
2and the Tax Compliance and Administration Fund provided for in
3this Section to be given to the Comptroller by the Department,
4the Comptroller shall cause the orders to be drawn for the
5respective amounts in accordance with the directions contained
6in such certification.
7    In addition to the disbursement required by the preceding
8paragraph, an allocation shall be made in each year to each
9county which received more than $500,000 in disbursements
10under the preceding paragraph in the preceding calendar year.
11The allocation shall be in an amount equal to the average
12monthly distribution made to each such county under the
13preceding paragraph during the preceding calendar year
14(excluding the 2 months of highest receipts). The distribution
15made in March of each year subsequent to the year in which an
16allocation was made pursuant to this paragraph and the
17preceding paragraph shall be reduced by the amount allocated
18and disbursed under this paragraph in the preceding calendar
19year. The Department shall prepare and certify to the
20Comptroller for disbursement the allocations made in
21accordance with this paragraph.
22    Nothing in this Section shall be construed to authorize a
23county to impose a tax upon the privilege of engaging in any
24business which under the Constitution of the United States may
25not be made the subject of taxation by this State.
26    An ordinance or resolution imposing or discontinuing a tax

 

 

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1hereunder or effecting a change in the rate thereof shall be
2adopted and a certified copy thereof filed with the Department
3on or before the first day of June, whereupon the Department
4shall proceed to administer and enforce this Section as of the
5first day of September next following such adoption and
6filing. Beginning January 1, 1992, an ordinance or resolution
7imposing or discontinuing the tax hereunder or effecting a
8change in the rate thereof shall be adopted and a certified
9copy thereof filed with the Department on or before the first
10day of July, whereupon the Department shall proceed to
11administer and enforce this Section as of the first day of
12October next following such adoption and filing. Beginning
13January 1, 1993, an ordinance or resolution imposing or
14discontinuing the tax hereunder or effecting a change in the
15rate thereof shall be adopted and a certified copy thereof
16filed with the Department on or before the first day of
17October, whereupon the Department shall proceed to administer
18and enforce this Section as of the first day of January next
19following such adoption and filing. Beginning April 1, 1998,
20an ordinance or resolution imposing or discontinuing the tax
21hereunder or effecting a change in the rate thereof shall
22either (i) be adopted and a certified copy thereof filed with
23the Department on or before the first day of April, whereupon
24the Department shall proceed to administer and enforce this
25Section as of the first day of July next following the adoption
26and filing; or (ii) be adopted and a certified copy thereof

 

 

10200HB1539sam001- 421 -LRB102 03555 HLH 39048 a

1filed with the Department on or before the first day of
2October, whereupon the Department shall proceed to administer
3and enforce this Section as of the first day of January next
4following the adoption and filing.
5    This Section shall be known and may be cited as the Home
6Rule County Service Occupation Tax Law.
7(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
8100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
97-12-19; 101-604, eff. 12-13-19.)
 
10    Section 60-45. The Illinois Municipal Code is amended by
11changing Sections 8-11-1, 8-11-1.3, 8-11-1.4, 8-11-1.6,
128-11-1.7, 8-11-5, and 11-74.3-6 as follows:
 
13    (65 ILCS 5/8-11-1)  (from Ch. 24, par. 8-11-1)
14    Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
15Act. The corporate authorities of a home rule municipality may
16impose a tax upon all persons engaged in the business of
17selling tangible personal property, other than an item of
18tangible personal property titled or registered with an agency
19of this State's government, at retail in the municipality on
20the gross receipts from these sales made in the course of such
21business. If imposed, the tax shall only be imposed in 1/4%
22increments. On and after September 1, 1991, this additional
23tax may not be imposed on tangible personal property taxed at
24the 1% rate under the Retailers' Occupation Tax Act (or at the

 

 

10200HB1539sam001- 422 -LRB102 03555 HLH 39048 a

10% rate imposed under this amendatory Act of the 102nd General
2Assembly). Beginning December 1, 2019, this tax is not imposed
3on sales of aviation fuel unless the tax revenue is expended
4for airport-related purposes. If a municipality does not have
5an airport-related purpose to which it dedicates aviation fuel
6tax revenue, then aviation fuel is excluded from the tax. Each
7municipality must comply with the certification requirements
8for airport-related purposes under Section 2-22 of the
9Retailers' Occupation Tax Act. For purposes of this Section,
10"airport-related purposes" has the meaning ascribed in Section
116z-20.2 of the State Finance Act. This exclusion for aviation
12fuel only applies for so long as the revenue use requirements
13of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
14municipality. The changes made to this Section by this
15amendatory Act of the 101st General Assembly are a denial and
16limitation of home rule powers and functions under subsection
17(g) of Section 6 of Article VII of the Illinois Constitution.
18The tax imposed by a home rule municipality under this Section
19and all civil penalties that may be assessed as an incident of
20the tax shall be collected and enforced by the State
21Department of Revenue. The certificate of registration that is
22issued by the Department to a retailer under the Retailers'
23Occupation Tax Act shall permit the retailer to engage in a
24business that is taxable under any ordinance or resolution
25enacted pursuant to this Section without registering
26separately with the Department under such ordinance or

 

 

10200HB1539sam001- 423 -LRB102 03555 HLH 39048 a

1resolution or under this Section. The Department shall have
2full power to administer and enforce this Section; to collect
3all taxes and penalties due hereunder; to dispose of taxes and
4penalties so collected in the manner hereinafter provided; and
5to determine all rights to credit memoranda arising on account
6of the erroneous payment of tax or penalty hereunder. In the
7administration of, and compliance with, this Section the
8Department and persons who are subject to this Section shall
9have the same rights, remedies, privileges, immunities, powers
10and duties, and be subject to the same conditions,
11restrictions, limitations, penalties and definitions of terms,
12and employ the same modes of procedure, as are prescribed in
13Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65
14(in respect to all provisions therein other than the State
15rate of tax), 2c, 3 (except as to the disposition of taxes and
16penalties collected, and except that the retailer's discount
17is not allowed for taxes paid on aviation fuel that are subject
18to the revenue use requirements of 49 U.S.C. 47107(b) and 49
19U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
205k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
21Retailers' Occupation Tax Act and Section 3-7 of the Uniform
22Penalty and Interest Act, as fully as if those provisions were
23set forth herein.
24    No tax may be imposed by a home rule municipality under
25this Section unless the municipality also imposes a tax at the
26same rate under Section 8-11-5 of this Act.

 

 

10200HB1539sam001- 424 -LRB102 03555 HLH 39048 a

1    Persons subject to any tax imposed under the authority
2granted in this Section may reimburse themselves for their
3seller's tax liability hereunder by separately stating that
4tax as an additional charge, which charge may be stated in
5combination, in a single amount, with State tax which sellers
6are required to collect under the Use Tax Act, pursuant to such
7bracket schedules as the Department may prescribe.
8    Whenever the Department determines that a refund should be
9made under this Section to a claimant instead of issuing a
10credit memorandum, the Department shall notify the State
11Comptroller, who shall cause the order to be drawn for the
12amount specified and to the person named in the notification
13from the Department. The refund shall be paid by the State
14Treasurer out of the home rule municipal retailers' occupation
15tax fund or the Local Government Aviation Trust Fund, as
16appropriate.
17    Except as otherwise provided in this paragraph, the
18Department shall immediately pay over to the State Treasurer,
19ex officio, as trustee, all taxes and penalties collected
20hereunder for deposit into the Home Rule Municipal Retailers'
21Occupation Tax Fund. Taxes and penalties collected on aviation
22fuel sold on or after December 1, 2019, shall be immediately
23paid over by the Department to the State Treasurer, ex
24officio, as trustee, for deposit into the Local Government
25Aviation Trust Fund. The Department shall only pay moneys into
26the Local Government Aviation Trust Fund under this Section

 

 

10200HB1539sam001- 425 -LRB102 03555 HLH 39048 a

1for so long as the revenue use requirements of 49 U.S.C.
247107(b) and 49 U.S.C. 47133 are binding on the State.
3    As soon as possible after the first day of each month,
4beginning January 1, 2011, upon certification of the
5Department of Revenue, the Comptroller shall order
6transferred, and the Treasurer shall transfer, to the STAR
7Bonds Revenue Fund the local sales tax increment, as defined
8in the Innovation Development and Economy Act, collected under
9this Section during the second preceding calendar month for
10sales within a STAR bond district.
11    After the monthly transfer to the STAR Bonds Revenue Fund,
12on or before the 25th day of each calendar month, the
13Department shall prepare and certify to the Comptroller the
14disbursement of stated sums of money to named municipalities,
15the municipalities to be those from which retailers have paid
16taxes or penalties hereunder to the Department during the
17second preceding calendar month. The amount to be paid to each
18municipality shall be the amount (not including credit
19memoranda and not including taxes and penalties collected on
20aviation fuel sold on or after December 1, 2019) collected
21hereunder during the second preceding calendar month by the
22Department plus an amount the Department determines is
23necessary to offset any amounts that were erroneously paid to
24a different taxing body, and not including an amount equal to
25the amount of refunds made during the second preceding
26calendar month by the Department on behalf of such

 

 

10200HB1539sam001- 426 -LRB102 03555 HLH 39048 a

1municipality, and not including any amount that the Department
2determines is necessary to offset any amounts that were
3payable to a different taxing body but were erroneously paid
4to the municipality, and not including any amounts that are
5transferred to the STAR Bonds Revenue Fund, less 1.5% of the
6remainder, which the Department shall transfer into the Tax
7Compliance and Administration Fund. The Department, at the
8time of each monthly disbursement to the municipalities, shall
9prepare and certify to the State Comptroller the amount to be
10transferred into the Tax Compliance and Administration Fund
11under this Section. Within 10 days after receipt by the
12Comptroller of the disbursement certification to the
13municipalities and the Tax Compliance and Administration Fund
14provided for in this Section to be given to the Comptroller by
15the Department, the Comptroller shall cause the orders to be
16drawn for the respective amounts in accordance with the
17directions contained in the certification.
18    In addition to the disbursement required by the preceding
19paragraph and in order to mitigate delays caused by
20distribution procedures, an allocation shall, if requested, be
21made within 10 days after January 14, 1991, and in November of
221991 and each year thereafter, to each municipality that
23received more than $500,000 during the preceding fiscal year,
24(July 1 through June 30) whether collected by the municipality
25or disbursed by the Department as required by this Section.
26Within 10 days after January 14, 1991, participating

 

 

10200HB1539sam001- 427 -LRB102 03555 HLH 39048 a

1municipalities shall notify the Department in writing of their
2intent to participate. In addition, for the initial
3distribution, participating municipalities shall certify to
4the Department the amounts collected by the municipality for
5each month under its home rule occupation and service
6occupation tax during the period July 1, 1989 through June 30,
71990. The allocation within 10 days after January 14, 1991,
8shall be in an amount equal to the monthly average of these
9amounts, excluding the 2 months of highest receipts. The
10monthly average for the period of July 1, 1990 through June 30,
111991 will be determined as follows: the amounts collected by
12the municipality under its home rule occupation and service
13occupation tax during the period of July 1, 1990 through
14September 30, 1990, plus amounts collected by the Department
15and paid to such municipality through June 30, 1991, excluding
16the 2 months of highest receipts. The monthly average for each
17subsequent period of July 1 through June 30 shall be an amount
18equal to the monthly distribution made to each such
19municipality under the preceding paragraph during this period,
20excluding the 2 months of highest receipts. The distribution
21made in November 1991 and each year thereafter under this
22paragraph and the preceding paragraph shall be reduced by the
23amount allocated and disbursed under this paragraph in the
24preceding period of July 1 through June 30. The Department
25shall prepare and certify to the Comptroller for disbursement
26the allocations made in accordance with this paragraph.

 

 

10200HB1539sam001- 428 -LRB102 03555 HLH 39048 a

1    For the purpose of determining the local governmental unit
2whose tax is applicable, a retail sale by a producer of coal or
3other mineral mined in Illinois is a sale at retail at the
4place where the coal or other mineral mined in Illinois is
5extracted from the earth. This paragraph does not apply to
6coal or other mineral when it is delivered or shipped by the
7seller to the purchaser at a point outside Illinois so that the
8sale is exempt under the United States Constitution as a sale
9in interstate or foreign commerce.
10    Nothing in this Section shall be construed to authorize a
11municipality to impose a tax upon the privilege of engaging in
12any business which under the Constitution of the United States
13may not be made the subject of taxation by this State.
14    An ordinance or resolution imposing or discontinuing a tax
15hereunder or effecting a change in the rate thereof shall be
16adopted and a certified copy thereof filed with the Department
17on or before the first day of June, whereupon the Department
18shall proceed to administer and enforce this Section as of the
19first day of September next following the adoption and filing.
20Beginning January 1, 1992, an ordinance or resolution imposing
21or discontinuing the tax hereunder or effecting a change in
22the rate thereof shall be adopted and a certified copy thereof
23filed with the Department on or before the first day of July,
24whereupon the Department shall proceed to administer and
25enforce this Section as of the first day of October next
26following such adoption and filing. Beginning January 1, 1993,

 

 

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1an ordinance or resolution imposing or discontinuing the tax
2hereunder or effecting a change in the rate thereof shall be
3adopted and a certified copy thereof filed with the Department
4on or before the first day of October, whereupon the
5Department shall proceed to administer and enforce this
6Section as of the first day of January next following the
7adoption and filing. However, a municipality located in a
8county with a population in excess of 3,000,000 that elected
9to become a home rule unit at the general primary election in
101994 may adopt an ordinance or resolution imposing the tax
11under this Section and file a certified copy of the ordinance
12or resolution with the Department on or before July 1, 1994.
13The Department shall then proceed to administer and enforce
14this Section as of October 1, 1994. Beginning April 1, 1998, an
15ordinance or resolution imposing or discontinuing the tax
16hereunder or effecting a change in the rate thereof shall
17either (i) be adopted and a certified copy thereof filed with
18the Department on or before the first day of April, whereupon
19the Department shall proceed to administer and enforce this
20Section as of the first day of July next following the adoption
21and filing; or (ii) be adopted and a certified copy thereof
22filed with the Department on or before the first day of
23October, whereupon the Department shall proceed to administer
24and enforce this Section as of the first day of January next
25following the adoption and filing.
26    When certifying the amount of a monthly disbursement to a

 

 

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1municipality under this Section, the Department shall increase
2or decrease the amount by an amount necessary to offset any
3misallocation of previous disbursements. The offset amount
4shall be the amount erroneously disbursed within the previous
56 months from the time a misallocation is discovered.
6    Any unobligated balance remaining in the Municipal
7Retailers' Occupation Tax Fund on December 31, 1989, which
8fund was abolished by Public Act 85-1135, and all receipts of
9municipal tax as a result of audits of liability periods prior
10to January 1, 1990, shall be paid into the Local Government Tax
11Fund for distribution as provided by this Section prior to the
12enactment of Public Act 85-1135. All receipts of municipal tax
13as a result of an assessment not arising from an audit, for
14liability periods prior to January 1, 1990, shall be paid into
15the Local Government Tax Fund for distribution before July 1,
161990, as provided by this Section prior to the enactment of
17Public Act 85-1135; and on and after July 1, 1990, all such
18receipts shall be distributed as provided in Section 6z-18 of
19the State Finance Act.
20    As used in this Section, "municipal" and "municipality"
21means a city, village or incorporated town, including an
22incorporated town that has superseded a civil township.
23    This Section shall be known and may be cited as the Home
24Rule Municipal Retailers' Occupation Tax Act.
25(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
26100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.

 

 

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17-12-19; 101-604, eff. 12-13-19.)
 
2    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
3    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
4Occupation Tax Act. The corporate authorities of a non-home
5rule municipality may impose a tax upon all persons engaged in
6the business of selling tangible personal property, other than
7on an item of tangible personal property which is titled and
8registered by an agency of this State's Government, at retail
9in the municipality for expenditure on public infrastructure
10or for property tax relief or both as defined in Section
118-11-1.2 if approved by referendum as provided in Section
128-11-1.1, of the gross receipts from such sales made in the
13course of such business. If the tax is approved by referendum
14on or after July 14, 2010 (the effective date of Public Act
1596-1057), the corporate authorities of a non-home rule
16municipality may, until July 1, 2030, use the proceeds of the
17tax for expenditure on municipal operations, in addition to or
18in lieu of any expenditure on public infrastructure or for
19property tax relief. The tax imposed may not be more than 1%
20and may be imposed only in 1/4% increments. The tax may not be
21imposed on tangible personal property taxed at the 1% rate
22under the Retailers' Occupation Tax Act (or at the 0% rate
23imposed under this amendatory Act of the 102nd General
24Assembly). Beginning December 1, 2019, this tax is not imposed
25on sales of aviation fuel unless the tax revenue is expended

 

 

10200HB1539sam001- 432 -LRB102 03555 HLH 39048 a

1for airport-related purposes. If a municipality does not have
2an airport-related purpose to which it dedicates aviation fuel
3tax revenue, then aviation fuel is excluded from the tax. Each
4municipality must comply with the certification requirements
5for airport-related purposes under Section 2-22 of the
6Retailers' Occupation Tax Act. For purposes of this Section,
7"airport-related purposes" has the meaning ascribed in Section
86z-20.2 of the State Finance Act. This exclusion for aviation
9fuel only applies for so long as the revenue use requirements
10of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
11municipality. The tax imposed by a municipality pursuant to
12this Section and all civil penalties that may be assessed as an
13incident thereof shall be collected and enforced by the State
14Department of Revenue. The certificate of registration which
15is issued by the Department to a retailer under the Retailers'
16Occupation Tax Act shall permit such retailer to engage in a
17business which is taxable under any ordinance or resolution
18enacted pursuant to this Section without registering
19separately with the Department under such ordinance or
20resolution or under this Section. The Department shall have
21full power to administer and enforce this Section; to collect
22all taxes and penalties due hereunder; to dispose of taxes and
23penalties so collected in the manner hereinafter provided, and
24to determine all rights to credit memoranda, arising on
25account of the erroneous payment of tax or penalty hereunder.
26In the administration of, and compliance with, this Section,

 

 

10200HB1539sam001- 433 -LRB102 03555 HLH 39048 a

1the Department and persons who are subject to this Section
2shall have the same rights, remedies, privileges, immunities,
3powers and duties, and be subject to the same conditions,
4restrictions, limitations, penalties and definitions of terms,
5and employ the same modes of procedure, as are prescribed in
6Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in
7respect to all provisions therein other than the State rate of
8tax), 2c, 3 (except as to the disposition of taxes and
9penalties collected, and except that the retailer's discount
10is not allowed for taxes paid on aviation fuel that are subject
11to the revenue use requirements of 49 U.S.C. 47107(b) and 49
12U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
135k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
14Retailers' Occupation Tax Act and Section 3-7 of the Uniform
15Penalty and Interest Act as fully as if those provisions were
16set forth herein.
17    No municipality may impose a tax under this Section unless
18the municipality also imposes a tax at the same rate under
19Section 8-11-1.4 of this Code.
20    Persons subject to any tax imposed pursuant to the
21authority granted in this Section may reimburse themselves for
22their seller's tax liability hereunder by separately stating
23such tax as an additional charge, which charge may be stated in
24combination, in a single amount, with State tax which sellers
25are required to collect under the Use Tax Act, pursuant to such
26bracket schedules as the Department may prescribe.

 

 

10200HB1539sam001- 434 -LRB102 03555 HLH 39048 a

1    Whenever the Department determines that a refund should be
2made under this Section to a claimant instead of issuing a
3credit memorandum, the Department shall notify the State
4Comptroller, who shall cause the order to be drawn for the
5amount specified, and to the person named, in such
6notification from the Department. Such refund shall be paid by
7the State Treasurer out of the non-home rule municipal
8retailers' occupation tax fund or the Local Government
9Aviation Trust Fund, as appropriate.
10    Except as otherwise provided, the Department shall
11forthwith pay over to the State Treasurer, ex officio, as
12trustee, all taxes and penalties collected hereunder for
13deposit into the Non-Home Rule Municipal Retailers' Occupation
14Tax Fund. Taxes and penalties collected on aviation fuel sold
15on or after December 1, 2019, shall be immediately paid over by
16the Department to the State Treasurer, ex officio, as trustee,
17for deposit into the Local Government Aviation Trust Fund. The
18Department shall only pay moneys into the Local Government
19Aviation Trust Fund under this Section for so long as the
20revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2147133 are binding on the municipality.
22    As soon as possible after the first day of each month,
23beginning January 1, 2011, upon certification of the
24Department of Revenue, the Comptroller shall order
25transferred, and the Treasurer shall transfer, to the STAR
26Bonds Revenue Fund the local sales tax increment, as defined

 

 

10200HB1539sam001- 435 -LRB102 03555 HLH 39048 a

1in the Innovation Development and Economy Act, collected under
2this Section during the second preceding calendar month for
3sales within a STAR bond district.
4    After the monthly transfer to the STAR Bonds Revenue Fund,
5on or before the 25th day of each calendar month, the
6Department shall prepare and certify to the Comptroller the
7disbursement of stated sums of money to named municipalities,
8the municipalities to be those from which retailers have paid
9taxes or penalties hereunder to the Department during the
10second preceding calendar month. The amount to be paid to each
11municipality shall be the amount (not including credit
12memoranda and not including taxes and penalties collected on
13aviation fuel sold on or after December 1, 2019) collected
14hereunder during the second preceding calendar month by the
15Department plus an amount the Department determines is
16necessary to offset any amounts which were erroneously paid to
17a different taxing body, and not including an amount equal to
18the amount of refunds made during the second preceding
19calendar month by the Department on behalf of such
20municipality, and not including any amount which the
21Department determines is necessary to offset any amounts which
22were payable to a different taxing body but were erroneously
23paid to the municipality, and not including any amounts that
24are transferred to the STAR Bonds Revenue Fund, less 1.5% of
25the remainder, which the Department shall transfer into the
26Tax Compliance and Administration Fund. The Department, at the

 

 

10200HB1539sam001- 436 -LRB102 03555 HLH 39048 a

1time of each monthly disbursement to the municipalities, shall
2prepare and certify to the State Comptroller the amount to be
3transferred into the Tax Compliance and Administration Fund
4under this Section. Within 10 days after receipt, by the
5Comptroller, of the disbursement certification to the
6municipalities and the Tax Compliance and Administration Fund
7provided for in this Section to be given to the Comptroller by
8the Department, the Comptroller shall cause the orders to be
9drawn for the respective amounts in accordance with the
10directions contained in such certification.
11    For the purpose of determining the local governmental unit
12whose tax is applicable, a retail sale, by a producer of coal
13or other mineral mined in Illinois, is a sale at retail at the
14place where the coal or other mineral mined in Illinois is
15extracted from the earth. This paragraph does not apply to
16coal or other mineral when it is delivered or shipped by the
17seller to the purchaser at a point outside Illinois so that the
18sale is exempt under the Federal Constitution as a sale in
19interstate or foreign commerce.
20    Nothing in this Section shall be construed to authorize a
21municipality to impose a tax upon the privilege of engaging in
22any business which under the constitution of the United States
23may not be made the subject of taxation by this State.
24    When certifying the amount of a monthly disbursement to a
25municipality under this Section, the Department shall increase
26or decrease such amount by an amount necessary to offset any

 

 

10200HB1539sam001- 437 -LRB102 03555 HLH 39048 a

1misallocation of previous disbursements. The offset amount
2shall be the amount erroneously disbursed within the previous
36 months from the time a misallocation is discovered.
4    The Department of Revenue shall implement Public Act
591-649 so as to collect the tax on and after January 1, 2002.
6    As used in this Section, "municipal" and "municipality"
7mean a city, village, or incorporated town, including an
8incorporated town which has superseded a civil township.
9    This Section shall be known and may be cited as the
10Non-Home Rule Municipal Retailers' Occupation Tax Act.
11(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
12100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-47, eff.
131-1-20; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19.)
 
14    (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)
15    Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
16Tax Act. The corporate authorities of a non-home rule
17municipality may impose a tax upon all persons engaged, in
18such municipality, in the business of making sales of service
19for expenditure on public infrastructure or for property tax
20relief or both as defined in Section 8-11-1.2 if approved by
21referendum as provided in Section 8-11-1.1, of the selling
22price of all tangible personal property transferred by such
23servicemen either in the form of tangible personal property or
24in the form of real estate as an incident to a sale of service.
25If the tax is approved by referendum on or after July 14, 2010

 

 

10200HB1539sam001- 438 -LRB102 03555 HLH 39048 a

1(the effective date of Public Act 96-1057), the corporate
2authorities of a non-home rule municipality may, until
3December 31, 2020, use the proceeds of the tax for expenditure
4on municipal operations, in addition to or in lieu of any
5expenditure on public infrastructure or for property tax
6relief. The tax imposed may not be more than 1% and may be
7imposed only in 1/4% increments. The tax may not be imposed on
8tangible personal property taxed at the 1% rate under the
9Service Occupation Tax Act (or at the 0% rate imposed under
10this amendatory Act of the 102nd General Assembly). Beginning
11December 1, 2019, this tax is not imposed on sales of aviation
12fuel unless the tax revenue is expended for airport-related
13purposes. If a municipality does not have an airport-related
14purpose to which it dedicates aviation fuel tax revenue, then
15aviation fuel is excluded from the tax. Each municipality must
16comply with the certification requirements for airport-related
17purposes under Section 2-22 of the Retailers' Occupation Tax
18Act. For purposes of this Section, "airport-related purposes"
19has the meaning ascribed in Section 6z-20.2 of the State
20Finance Act. This exclusion for aviation fuel only applies for
21so long as the revenue use requirements of 49 U.S.C. 47107(b)
22and 49 U.S.C. 47133 are binding on the municipality. The tax
23imposed by a municipality pursuant to this Section and all
24civil penalties that may be assessed as an incident thereof
25shall be collected and enforced by the State Department of
26Revenue. The certificate of registration which is issued by

 

 

10200HB1539sam001- 439 -LRB102 03555 HLH 39048 a

1the Department to a retailer under the Retailers' Occupation
2Tax Act or under the Service Occupation Tax Act shall permit
3such registrant to engage in a business which is taxable under
4any ordinance or resolution enacted pursuant to this Section
5without registering separately with the Department under such
6ordinance or resolution or under this Section. The Department
7shall have full power to administer and enforce this Section;
8to collect all taxes and penalties due hereunder; to dispose
9of taxes and penalties so collected in the manner hereinafter
10provided, and to determine all rights to credit memoranda
11arising on account of the erroneous payment of tax or penalty
12hereunder. In the administration of, and compliance with, this
13Section the Department and persons who are subject to this
14Section shall have the same rights, remedies, privileges,
15immunities, powers and duties, and be subject to the same
16conditions, restrictions, limitations, penalties and
17definitions of terms, and employ the same modes of procedure,
18as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
19respect to all provisions therein other than the State rate of
20tax), 4 (except that the reference to the State shall be to the
21taxing municipality), 5, 7, 8 (except that the jurisdiction to
22which the tax shall be a debt to the extent indicated in that
23Section 8 shall be the taxing municipality), 9 (except as to
24the disposition of taxes and penalties collected, and except
25that the returned merchandise credit for this municipal tax
26may not be taken against any State tax, and except that the

 

 

10200HB1539sam001- 440 -LRB102 03555 HLH 39048 a

1retailer's discount is not allowed for taxes paid on aviation
2fuel that are subject to the revenue use requirements of 49
3U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except the
4reference therein to Section 2b of the Retailers' Occupation
5Tax Act), 13 (except that any reference to the State shall mean
6the taxing municipality), the first paragraph of Section 15,
716, 17, 18, 19 and 20 of the Service Occupation Tax Act and
8Section 3-7 of the Uniform Penalty and Interest Act, as fully
9as if those provisions were set forth herein.
10    No municipality may impose a tax under this Section unless
11the municipality also imposes a tax at the same rate under
12Section 8-11-1.3 of this Code.
13    Persons subject to any tax imposed pursuant to the
14authority granted in this Section may reimburse themselves for
15their serviceman's tax liability hereunder by separately
16stating such tax as an additional charge, which charge may be
17stated in combination, in a single amount, with State tax
18which servicemen are authorized to collect under the Service
19Use Tax Act, pursuant to such bracket schedules as the
20Department may prescribe.
21    Whenever the Department determines that a refund should be
22made under this Section to a claimant instead of issuing
23credit memorandum, the Department shall notify the State
24Comptroller, who shall cause the order to be drawn for the
25amount specified, and to the person named, in such
26notification from the Department. Such refund shall be paid by

 

 

10200HB1539sam001- 441 -LRB102 03555 HLH 39048 a

1the State Treasurer out of the municipal retailers' occupation
2tax fund or the Local Government Aviation Trust Fund, as
3appropriate.
4    Except as otherwise provided in this paragraph, the
5Department shall forthwith pay over to the State Treasurer, ex
6officio, as trustee, all taxes and penalties collected
7hereunder for deposit into the municipal retailers' occupation
8tax fund. Taxes and penalties collected on aviation fuel sold
9on or after December 1, 2019, shall be immediately paid over by
10the Department to the State Treasurer, ex officio, as trustee,
11for deposit into the Local Government Aviation Trust Fund. The
12Department shall only pay moneys into the Local Government
13Aviation Trust Fund under this Section for so long as the
14revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1547133 are binding on the municipality.
16    As soon as possible after the first day of each month,
17beginning January 1, 2011, upon certification of the
18Department of Revenue, the Comptroller shall order
19transferred, and the Treasurer shall transfer, to the STAR
20Bonds Revenue Fund the local sales tax increment, as defined
21in the Innovation Development and Economy Act, collected under
22this Section during the second preceding calendar month for
23sales within a STAR bond district.
24    After the monthly transfer to the STAR Bonds Revenue Fund,
25on or before the 25th day of each calendar month, the
26Department shall prepare and certify to the Comptroller the

 

 

10200HB1539sam001- 442 -LRB102 03555 HLH 39048 a

1disbursement of stated sums of money to named municipalities,
2the municipalities to be those from which suppliers and
3servicemen have paid taxes or penalties hereunder to the
4Department during the second preceding calendar month. The
5amount to be paid to each municipality shall be the amount (not
6including credit memoranda and not including taxes and
7penalties collected on aviation fuel sold on or after December
81, 2019) collected hereunder during the second preceding
9calendar month by the Department, and not including an amount
10equal to the amount of refunds made during the second
11preceding calendar month by the Department on behalf of such
12municipality, and not including any amounts that are
13transferred to the STAR Bonds Revenue Fund, less 1.5% of the
14remainder, which the Department shall transfer into the Tax
15Compliance and Administration Fund. The Department, at the
16time of each monthly disbursement to the municipalities, shall
17prepare and certify to the State Comptroller the amount to be
18transferred into the Tax Compliance and Administration Fund
19under this Section. Within 10 days after receipt, by the
20Comptroller, of the disbursement certification to the
21municipalities, the General Revenue Fund, and the Tax
22Compliance and Administration Fund provided for in this
23Section to be given to the Comptroller by the Department, the
24Comptroller shall cause the orders to be drawn for the
25respective amounts in accordance with the directions contained
26in such certification.

 

 

10200HB1539sam001- 443 -LRB102 03555 HLH 39048 a

1    The Department of Revenue shall implement Public Act
291-649 so as to collect the tax on and after January 1, 2002.
3    Nothing in this Section shall be construed to authorize a
4municipality to impose a tax upon the privilege of engaging in
5any business which under the constitution of the United States
6may not be made the subject of taxation by this State.
7    As used in this Section, "municipal" or "municipality"
8means or refers to a city, village or incorporated town,
9including an incorporated town which has superseded a civil
10township.
11    This Section shall be known and may be cited as the
12"Non-Home Rule Municipal Service Occupation Tax Act".
13(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
14100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
157-12-19; 101-604, eff. 12-13-19.)
 
16    (65 ILCS 5/8-11-1.6)
17    Sec. 8-11-1.6. Non-home rule municipal retailers'
18occupation tax; municipalities between 20,000 and 25,000. The
19corporate authorities of a non-home rule municipality with a
20population of more than 20,000 but less than 25,000 that has,
21prior to January 1, 1987, established a Redevelopment Project
22Area that has been certified as a State Sales Tax Boundary and
23has issued bonds or otherwise incurred indebtedness to pay for
24costs in excess of $5,000,000, which is secured in part by a
25tax increment allocation fund, in accordance with the

 

 

10200HB1539sam001- 444 -LRB102 03555 HLH 39048 a

1provisions of Division 11-74.4 of this Code may, by passage of
2an ordinance, impose a tax upon all persons engaged in the
3business of selling tangible personal property, other than on
4an item of tangible personal property that is titled and
5registered by an agency of this State's Government, at retail
6in the municipality. This tax may not be imposed on tangible
7personal property taxed at the 1% rate under the Retailers'
8Occupation Tax Act (or at the 0% rate imposed under this
9amendatory Act of the 102nd General Assembly). Beginning
10December 1, 2019, this tax is not imposed on sales of aviation
11fuel unless the tax revenue is expended for airport-related
12purposes. If a municipality does not have an airport-related
13purpose to which it dedicates aviation fuel tax revenue, then
14aviation fuel is excluded from the tax. Each municipality must
15comply with the certification requirements for airport-related
16purposes under Section 2-22 of the Retailers' Occupation Tax
17Act. For purposes of this Section, "airport-related purposes"
18has the meaning ascribed in Section 6z-20.2 of the State
19Finance Act. This exclusion for aviation fuel only applies for
20so long as the revenue use requirements of 49 U.S.C. 47107(b)
21and 49 U.S.C. 47133 are binding on the municipality. If
22imposed, the tax shall only be imposed in .25% increments of
23the gross receipts from such sales made in the course of
24business. Any tax imposed by a municipality under this Section
25and all civil penalties that may be assessed as an incident
26thereof shall be collected and enforced by the State

 

 

10200HB1539sam001- 445 -LRB102 03555 HLH 39048 a

1Department of Revenue. An ordinance imposing a tax hereunder
2or effecting a change in the rate thereof shall be adopted and
3a certified copy thereof filed with the Department on or
4before the first day of October, whereupon the Department
5shall proceed to administer and enforce this Section as of the
6first day of January next following such adoption and filing.
7The certificate of registration that is issued by the
8Department to a retailer under the Retailers' Occupation Tax
9Act shall permit the retailer to engage in a business that is
10taxable under any ordinance or resolution enacted under this
11Section without registering separately with the Department
12under the ordinance or resolution or under this Section. The
13Department shall have full power to administer and enforce
14this Section, to collect all taxes and penalties due
15hereunder, to dispose of taxes and penalties so collected in
16the manner hereinafter provided, and to determine all rights
17to credit memoranda, arising on account of the erroneous
18payment of tax or penalty hereunder. In the administration of,
19and compliance with this Section, the Department and persons
20who are subject to this Section shall have the same rights,
21remedies, privileges, immunities, powers, and duties, and be
22subject to the same conditions, restrictions, limitations,
23penalties, and definitions of terms, and employ the same modes
24of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
251e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
26therein other than the State rate of tax), 2c, 3 (except as to

 

 

10200HB1539sam001- 446 -LRB102 03555 HLH 39048 a

1the disposition of taxes and penalties collected, and except
2that the retailer's discount is not allowed for taxes paid on
3aviation fuel that are subject to the revenue use requirements
4of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
55d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
610, 11, 12 and 13 of the Retailers' Occupation Tax Act and
7Section 3-7 of the Uniform Penalty and Interest Act as fully as
8if those provisions were set forth herein.
9    A tax may not be imposed by a municipality under this
10Section unless the municipality also imposes a tax at the same
11rate under Section 8-11-1.7 of this Act.
12    Persons subject to any tax imposed under the authority
13granted in this Section may reimburse themselves for their
14seller's tax liability hereunder by separately stating the tax
15as an additional charge, which charge may be stated in
16combination, in a single amount, with State tax which sellers
17are required to collect under the Use Tax Act, pursuant to such
18bracket schedules as the Department may prescribe.
19    Whenever the Department determines that a refund should be
20made under this Section to a claimant, instead of issuing a
21credit memorandum, the Department shall notify the State
22Comptroller, who shall cause the order to be drawn for the
23amount specified, and to the person named in the notification
24from the Department. The refund shall be paid by the State
25Treasurer out of the Non-Home Rule Municipal Retailers'
26Occupation Tax Fund, which is hereby created or the Local

 

 

10200HB1539sam001- 447 -LRB102 03555 HLH 39048 a

1Government Aviation Trust Fund, as appropriate.
2    Except as otherwise provided in this paragraph, the
3Department shall forthwith pay over to the State Treasurer, ex
4officio, as trustee, all taxes and penalties collected
5hereunder for deposit into the Non-Home Rule Municipal
6Retailers' Occupation Tax Fund. Taxes and penalties collected
7on aviation fuel sold on or after December 1, 2019, shall be
8immediately paid over by the Department to the State
9Treasurer, ex officio, as trustee, for deposit into the Local
10Government Aviation Trust Fund. The Department shall only pay
11moneys into the Local Government Aviation Trust Fund under
12this Section for so long as the revenue use requirements of 49
13U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
14municipality.
15    As soon as possible after the first day of each month,
16beginning January 1, 2011, upon certification of the
17Department of Revenue, the Comptroller shall order
18transferred, and the Treasurer shall transfer, to the STAR
19Bonds Revenue Fund the local sales tax increment, as defined
20in the Innovation Development and Economy Act, collected under
21this Section during the second preceding calendar month for
22sales within a STAR bond district.
23    After the monthly transfer to the STAR Bonds Revenue Fund,
24on or before the 25th day of each calendar month, the
25Department shall prepare and certify to the Comptroller the
26disbursement of stated sums of money to named municipalities,

 

 

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1the municipalities to be those from which retailers have paid
2taxes or penalties hereunder to the Department during the
3second preceding calendar month. The amount to be paid to each
4municipality shall be the amount (not including credit
5memoranda and not including taxes and penalties collected on
6aviation fuel sold on or after December 1, 2019) collected
7hereunder during the second preceding calendar month by the
8Department plus an amount the Department determines is
9necessary to offset any amounts that were erroneously paid to
10a different taxing body, and not including an amount equal to
11the amount of refunds made during the second preceding
12calendar month by the Department on behalf of the
13municipality, and not including any amount that the Department
14determines is necessary to offset any amounts that were
15payable to a different taxing body but were erroneously paid
16to the municipality, and not including any amounts that are
17transferred to the STAR Bonds Revenue Fund, less 1.5% of the
18remainder, which the Department shall transfer into the Tax
19Compliance and Administration Fund. The Department, at the
20time of each monthly disbursement to the municipalities, shall
21prepare and certify to the State Comptroller the amount to be
22transferred into the Tax Compliance and Administration Fund
23under this Section. Within 10 days after receipt by the
24Comptroller of the disbursement certification to the
25municipalities and the Tax Compliance and Administration Fund
26provided for in this Section to be given to the Comptroller by

 

 

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1the Department, the Comptroller shall cause the orders to be
2drawn for the respective amounts in accordance with the
3directions contained in the certification.
4    For the purpose of determining the local governmental unit
5whose tax is applicable, a retail sale by a producer of coal or
6other mineral mined in Illinois is a sale at retail at the
7place where the coal or other mineral mined in Illinois is
8extracted from the earth. This paragraph does not apply to
9coal or other mineral when it is delivered or shipped by the
10seller to the purchaser at a point outside Illinois so that the
11sale is exempt under the federal Constitution as a sale in
12interstate or foreign commerce.
13    Nothing in this Section shall be construed to authorize a
14municipality to impose a tax upon the privilege of engaging in
15any business which under the constitution of the United States
16may not be made the subject of taxation by this State.
17    When certifying the amount of a monthly disbursement to a
18municipality under this Section, the Department shall increase
19or decrease the amount by an amount necessary to offset any
20misallocation of previous disbursements. The offset amount
21shall be the amount erroneously disbursed within the previous
226 months from the time a misallocation is discovered.
23    As used in this Section, "municipal" and "municipality"
24means a city, village, or incorporated town, including an
25incorporated town that has superseded a civil township.
26(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;

 

 

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1100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, eff.
26-5-19; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19.)
 
3    (65 ILCS 5/8-11-1.7)
4    Sec. 8-11-1.7. Non-home rule municipal service occupation
5tax; municipalities between 20,000 and 25,000. The corporate
6authorities of a non-home rule municipality with a population
7of more than 20,000 but less than 25,000 as determined by the
8last preceding decennial census that has, prior to January 1,
91987, established a Redevelopment Project Area that has been
10certified as a State Sales Tax Boundary and has issued bonds or
11otherwise incurred indebtedness to pay for costs in excess of
12$5,000,000, which is secured in part by a tax increment
13allocation fund, in accordance with the provisions of Division
1411-74.4 of this Code may, by passage of an ordinance, impose a
15tax upon all persons engaged in the municipality in the
16business of making sales of service. If imposed, the tax shall
17only be imposed in .25% increments of the selling price of all
18tangible personal property transferred by such servicemen
19either in the form of tangible personal property or in the form
20of real estate as an incident to a sale of service. This tax
21may not be imposed on tangible personal property taxed at the
221% rate under the Service Occupation Tax Act (or at the 0% rate
23imposed under this amendatory Act of the 102nd General
24Assembly). Beginning December 1, 2019, this tax is not imposed
25on sales of aviation fuel unless the tax revenue is expended

 

 

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1for airport-related purposes. If a municipality does not have
2an airport-related purpose to which it dedicates aviation fuel
3tax revenue, then aviation fuel is excluded from the tax. Each
4municipality must comply with the certification requirements
5for airport-related purposes under Section 2-22 of the
6Retailers' Occupation Tax Act. For purposes of this Section,
7"airport-related purposes" has the meaning ascribed in Section
86z-20.2 of the State Finance Act. This exclusion for aviation
9fuel only applies for so long as the revenue use requirements
10of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
11municipality. The tax imposed by a municipality under this
12Section and all civil penalties that may be assessed as an
13incident thereof shall be collected and enforced by the State
14Department of Revenue. An ordinance imposing a tax hereunder
15or effecting a change in the rate thereof shall be adopted and
16a certified copy thereof filed with the Department on or
17before the first day of October, whereupon the Department
18shall proceed to administer and enforce this Section as of the
19first day of January next following such adoption and filing.
20The certificate of registration that is issued by the
21Department to a retailer under the Retailers' Occupation Tax
22Act or under the Service Occupation Tax Act shall permit the
23registrant to engage in a business that is taxable under any
24ordinance or resolution enacted under this Section without
25registering separately with the Department under the ordinance
26or resolution or under this Section. The Department shall have

 

 

10200HB1539sam001- 452 -LRB102 03555 HLH 39048 a

1full power to administer and enforce this Section, to collect
2all taxes and penalties due hereunder, to dispose of taxes and
3penalties so collected in a manner hereinafter provided, and
4to determine all rights to credit memoranda arising on account
5of the erroneous payment of tax or penalty hereunder. In the
6administration of and compliance with this Section, the
7Department and persons who are subject to this Section shall
8have the same rights, remedies, privileges, immunities,
9powers, and duties, and be subject to the same conditions,
10restrictions, limitations, penalties and definitions of terms,
11and employ the same modes of procedure, as are prescribed in
12Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
13provisions therein other than the State rate of tax), 4
14(except that the reference to the State shall be to the taxing
15municipality), 5, 7, 8 (except that the jurisdiction to which
16the tax shall be a debt to the extent indicated in that Section
178 shall be the taxing municipality), 9 (except as to the
18disposition of taxes and penalties collected, and except that
19the returned merchandise credit for this municipal tax may not
20be taken against any State tax, and except that the retailer's
21discount is not allowed for taxes paid on aviation fuel that
22are subject to the revenue use requirements of 49 U.S.C.
2347107(b) and 49 U.S.C. 47133), 10, 11, 12, (except the
24reference therein to Section 2b of the Retailers' Occupation
25Tax Act), 13 (except that any reference to the State shall mean
26the taxing municipality), the first paragraph of Sections 15,

 

 

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116, 17, 18, 19, and 20 of the Service Occupation Tax Act and
2Section 3-7 of the Uniform Penalty and Interest Act, as fully
3as if those provisions were set forth herein.
4    A tax may not be imposed by a municipality under this
5Section unless the municipality also imposes a tax at the same
6rate under Section 8-11-1.6 of this Act.
7    Person subject to any tax imposed under the authority
8granted in this Section may reimburse themselves for their
9servicemen's tax liability hereunder by separately stating the
10tax as an additional charge, which charge may be stated in
11combination, in a single amount, with State tax that
12servicemen are authorized to collect under the Service Use Tax
13Act, under such bracket schedules as the Department may
14prescribe.
15    Whenever the Department determines that a refund should be
16made under this Section to a claimant instead of issuing
17credit memorandum, the Department shall notify the State
18Comptroller, who shall cause the order to be drawn for the
19amount specified, and to the person named, in such
20notification from the Department. The refund shall be paid by
21the State Treasurer out of the Non-Home Rule Municipal
22Retailers' Occupation Tax Fund or the Local Government
23Aviation Trust Fund, as appropriate.
24    Except as otherwise provided in this paragraph, the
25Department shall forthwith pay over to the State Treasurer, ex
26officio, as trustee, all taxes and penalties collected

 

 

10200HB1539sam001- 454 -LRB102 03555 HLH 39048 a

1hereunder for deposit into the Non-Home Rule Municipal
2Retailers' Occupation Tax Fund. Taxes and penalties collected
3on aviation fuel sold on or after December 1, 2019, shall be
4immediately paid over by the Department to the State
5Treasurer, ex officio, as trustee, for deposit into the Local
6Government Aviation Trust Fund. The Department shall only pay
7moneys into the Local Government Aviation Trust Fund under
8this Section for so long as the revenue use requirements of 49
9U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
10Municipality.
11    As soon as possible after the first day of each month,
12beginning January 1, 2011, upon certification of the
13Department of Revenue, the Comptroller shall order
14transferred, and the Treasurer shall transfer, to the STAR
15Bonds Revenue Fund the local sales tax increment, as defined
16in the Innovation Development and Economy Act, collected under
17this Section during the second preceding calendar month for
18sales within a STAR bond district.
19    After the monthly transfer to the STAR Bonds Revenue Fund,
20on or before the 25th day of each calendar month, the
21Department shall prepare and certify to the Comptroller the
22disbursement of stated sums of money to named municipalities,
23the municipalities to be those from which suppliers and
24servicemen have paid taxes or penalties hereunder to the
25Department during the second preceding calendar month. The
26amount to be paid to each municipality shall be the amount (not

 

 

10200HB1539sam001- 455 -LRB102 03555 HLH 39048 a

1including credit memoranda and not including taxes and
2penalties collected on aviation fuel sold on or after December
31, 2019) collected hereunder during the second preceding
4calendar month by the Department, and not including an amount
5equal to the amount of refunds made during the second
6preceding calendar month by the Department on behalf of such
7municipality, and not including any amounts that are
8transferred to the STAR Bonds Revenue Fund, less 1.5% of the
9remainder, which the Department shall transfer into the Tax
10Compliance and Administration Fund. The Department, at the
11time of each monthly disbursement to the municipalities, shall
12prepare and certify to the State Comptroller the amount to be
13transferred into the Tax Compliance and Administration Fund
14under this Section. Within 10 days after receipt by the
15Comptroller of the disbursement certification to the
16municipalities, the Tax Compliance and Administration Fund,
17and the General Revenue Fund, provided for in this Section to
18be given to the Comptroller by the Department, the Comptroller
19shall cause the orders to be drawn for the respective amounts
20in accordance with the directions contained in the
21certification.
22    When certifying the amount of a monthly disbursement to a
23municipality under this Section, the Department shall increase
24or decrease the amount by an amount necessary to offset any
25misallocation of previous disbursements. The offset amount
26shall be the amount erroneously disbursed within the previous

 

 

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16 months from the time a misallocation is discovered.
2    Nothing in this Section shall be construed to authorize a
3municipality to impose a tax upon the privilege of engaging in
4any business which under the constitution of the United States
5may not be made the subject of taxation by this State.
6(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
7100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, eff.
86-5-19; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19.)
 
9    (65 ILCS 5/8-11-5)  (from Ch. 24, par. 8-11-5)
10    Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
11Act. The corporate authorities of a home rule municipality may
12impose a tax upon all persons engaged, in such municipality,
13in the business of making sales of service at the same rate of
14tax imposed pursuant to Section 8-11-1, of the selling price
15of all tangible personal property transferred by such
16servicemen either in the form of tangible personal property or
17in the form of real estate as an incident to a sale of service.
18If imposed, such tax shall only be imposed in 1/4% increments.
19On and after September 1, 1991, this additional tax may not be
20imposed on tangible personal property taxed at the 1% rate
21under the Service Retailers' Occupation Tax Act (or at the 0%
22rate imposed under this amendatory Act of the 102nd General
23Assembly). Beginning December 1, 2019, this tax may not be
24imposed on sales of aviation fuel unless the tax revenue is
25expended for airport-related purposes. If a municipality does

 

 

10200HB1539sam001- 457 -LRB102 03555 HLH 39048 a

1not have an airport-related purpose to which it dedicates
2aviation fuel tax revenue, then aviation fuel shall be
3excluded from tax. Each municipality must comply with the
4certification requirements for airport-related purposes under
5Section 2-22 of the Retailers' Occupation Tax Act. For
6purposes of this Section, "airport-related purposes" has the
7meaning ascribed in Section 6z-20.2 of the State Finance Act.
8This exception for aviation fuel only applies for so long as
9the revenue use requirements of 49 U.S.C. 47107(b) and 49
10U.S.C. 47133 are binding on the State. The changes made to this
11Section by this amendatory Act of the 101st General Assembly
12are a denial and limitation of home rule powers and functions
13under subsection (g) of Section 6 of Article VII of the
14Illinois Constitution. The tax imposed by a home rule
15municipality pursuant to this Section and all civil penalties
16that may be assessed as an incident thereof shall be collected
17and enforced by the State Department of Revenue. The
18certificate of registration which is issued by the Department
19to a retailer under the Retailers' Occupation Tax Act or under
20the Service Occupation Tax Act shall permit such registrant to
21engage in a business which is taxable under any ordinance or
22resolution enacted pursuant to this Section without
23registering separately with the Department under such
24ordinance or resolution or under this Section. The Department
25shall have full power to administer and enforce this Section;
26to collect all taxes and penalties due hereunder; to dispose

 

 

10200HB1539sam001- 458 -LRB102 03555 HLH 39048 a

1of taxes and penalties so collected in the manner hereinafter
2provided, and to determine all rights to credit memoranda
3arising on account of the erroneous payment of tax or penalty
4hereunder. In the administration of, and compliance with, this
5Section the Department and persons who are subject to this
6Section shall have the same rights, remedies, privileges,
7immunities, powers and duties, and be subject to the same
8conditions, restrictions, limitations, penalties and
9definitions of terms, and employ the same modes of procedure,
10as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
11respect to all provisions therein other than the State rate of
12tax), 4 (except that the reference to the State shall be to the
13taxing municipality), 5, 7, 8 (except that the jurisdiction to
14which the tax shall be a debt to the extent indicated in that
15Section 8 shall be the taxing municipality), 9 (except as to
16the disposition of taxes and penalties collected, and except
17that the returned merchandise credit for this municipal tax
18may not be taken against any State tax, and except that the
19retailer's discount is not allowed for taxes paid on aviation
20fuel that are subject to the revenue use requirements of 49
21U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except the
22reference therein to Section 2b of the Retailers' Occupation
23Tax Act), 13 (except that any reference to the State shall mean
24the taxing municipality), the first paragraph of Section 15,
2516, 17 (except that credit memoranda issued hereunder may not
26be used to discharge any State tax liability), 18, 19 and 20 of

 

 

10200HB1539sam001- 459 -LRB102 03555 HLH 39048 a

1the Service Occupation Tax Act and Section 3-7 of the Uniform
2Penalty and Interest Act, as fully as if those provisions were
3set forth herein.
4    No tax may be imposed by a home rule municipality pursuant
5to this Section unless such municipality also imposes a tax at
6the same rate pursuant to Section 8-11-1 of this Act.
7    Persons subject to any tax imposed pursuant to the
8authority granted in this Section may reimburse themselves for
9their serviceman's tax liability hereunder by separately
10stating such tax as an additional charge, which charge may be
11stated in combination, in a single amount, with State tax
12which servicemen are authorized to collect under the Service
13Use Tax Act, pursuant to such bracket schedules as the
14Department may prescribe.
15    Whenever the Department determines that a refund should be
16made under this Section to a claimant instead of issuing
17credit memorandum, the Department shall notify the State
18Comptroller, who shall cause the order to be drawn for the
19amount specified, and to the person named, in such
20notification from the Department. Such refund shall be paid by
21the State Treasurer out of the home rule municipal retailers'
22occupation tax fund or the Local Government Aviation Trust
23Fund, as appropriate.
24    Except as otherwise provided in this paragraph, the
25Department shall forthwith pay over to the State Treasurer, ex
26officio, as trustee, all taxes and penalties collected

 

 

10200HB1539sam001- 460 -LRB102 03555 HLH 39048 a

1hereunder for deposit into the Home Rule Municipal Retailers'
2Occupation Tax Fund. Taxes and penalties collected on aviation
3fuel sold on or after December 1, 2019, shall be immediately
4paid over by the Department to the State Treasurer, ex
5officio, as trustee, for deposit into the Local Government
6Aviation Trust Fund. The Department shall only pay moneys into
7the Local Government Aviation Trust Fund under this Section
8for so long as the revenue use requirements of 49 U.S.C.
947107(b) and 49 U.S.C. 47133 are binding on the municipality.
10    As soon as possible after the first day of each month,
11beginning January 1, 2011, upon certification of the
12Department of Revenue, the Comptroller shall order
13transferred, and the Treasurer shall transfer, to the STAR
14Bonds Revenue Fund the local sales tax increment, as defined
15in the Innovation Development and Economy Act, collected under
16this Section during the second preceding calendar month for
17sales within a STAR bond district.
18    After the monthly transfer to the STAR Bonds Revenue Fund,
19on or before the 25th day of each calendar month, the
20Department shall prepare and certify to the Comptroller the
21disbursement of stated sums of money to named municipalities,
22the municipalities to be those from which suppliers and
23servicemen have paid taxes or penalties hereunder to the
24Department during the second preceding calendar month. The
25amount to be paid to each municipality shall be the amount (not
26including credit memoranda and not including taxes and

 

 

10200HB1539sam001- 461 -LRB102 03555 HLH 39048 a

1penalties collected on aviation fuel sold on or after December
21, 2019) collected hereunder during the second preceding
3calendar month by the Department, and not including an amount
4equal to the amount of refunds made during the second
5preceding calendar month by the Department on behalf of such
6municipality, and not including any amounts that are
7transferred to the STAR Bonds Revenue Fund, less 1.5% of the
8remainder, which the Department shall transfer into the Tax
9Compliance and Administration Fund. The Department, at the
10time of each monthly disbursement to the municipalities, shall
11prepare and certify to the State Comptroller the amount to be
12transferred into the Tax Compliance and Administration Fund
13under this Section. Within 10 days after receipt, by the
14Comptroller, of the disbursement certification to the
15municipalities and the Tax Compliance and Administration Fund
16provided for in this Section to be given to the Comptroller by
17the Department, the Comptroller shall cause the orders to be
18drawn for the respective amounts in accordance with the
19directions contained in such certification.
20    In addition to the disbursement required by the preceding
21paragraph and in order to mitigate delays caused by
22distribution procedures, an allocation shall, if requested, be
23made within 10 days after January 14, 1991, and in November of
241991 and each year thereafter, to each municipality that
25received more than $500,000 during the preceding fiscal year,
26(July 1 through June 30) whether collected by the municipality

 

 

10200HB1539sam001- 462 -LRB102 03555 HLH 39048 a

1or disbursed by the Department as required by this Section.
2Within 10 days after January 14, 1991, participating
3municipalities shall notify the Department in writing of their
4intent to participate. In addition, for the initial
5distribution, participating municipalities shall certify to
6the Department the amounts collected by the municipality for
7each month under its home rule occupation and service
8occupation tax during the period July 1, 1989 through June 30,
91990. The allocation within 10 days after January 14, 1991,
10shall be in an amount equal to the monthly average of these
11amounts, excluding the 2 months of highest receipts. Monthly
12average for the period of July 1, 1990 through June 30, 1991
13will be determined as follows: the amounts collected by the
14municipality under its home rule occupation and service
15occupation tax during the period of July 1, 1990 through
16September 30, 1990, plus amounts collected by the Department
17and paid to such municipality through June 30, 1991, excluding
18the 2 months of highest receipts. The monthly average for each
19subsequent period of July 1 through June 30 shall be an amount
20equal to the monthly distribution made to each such
21municipality under the preceding paragraph during this period,
22excluding the 2 months of highest receipts. The distribution
23made in November 1991 and each year thereafter under this
24paragraph and the preceding paragraph shall be reduced by the
25amount allocated and disbursed under this paragraph in the
26preceding period of July 1 through June 30. The Department

 

 

10200HB1539sam001- 463 -LRB102 03555 HLH 39048 a

1shall prepare and certify to the Comptroller for disbursement
2the allocations made in accordance with this paragraph.
3    Nothing in this Section shall be construed to authorize a
4municipality to impose a tax upon the privilege of engaging in
5any business which under the constitution of the United States
6may not be made the subject of taxation by this State.
7    An ordinance or resolution imposing or discontinuing a tax
8hereunder or effecting a change in the rate thereof shall be
9adopted and a certified copy thereof filed with the Department
10on or before the first day of June, whereupon the Department
11shall proceed to administer and enforce this Section as of the
12first day of September next following such adoption and
13filing. Beginning January 1, 1992, an ordinance or resolution
14imposing or discontinuing the tax hereunder or effecting a
15change in the rate thereof shall be adopted and a certified
16copy thereof filed with the Department on or before the first
17day of July, whereupon the Department shall proceed to
18administer and enforce this Section as of the first day of
19October next following such adoption and filing. Beginning
20January 1, 1993, an ordinance or resolution imposing or
21discontinuing the tax hereunder or effecting a change in the
22rate thereof shall be adopted and a certified copy thereof
23filed with the Department on or before the first day of
24October, whereupon the Department shall proceed to administer
25and enforce this Section as of the first day of January next
26following such adoption and filing. However, a municipality

 

 

10200HB1539sam001- 464 -LRB102 03555 HLH 39048 a

1located in a county with a population in excess of 3,000,000
2that elected to become a home rule unit at the general primary
3election in 1994 may adopt an ordinance or resolution imposing
4the tax under this Section and file a certified copy of the
5ordinance or resolution with the Department on or before July
61, 1994. The Department shall then proceed to administer and
7enforce this Section as of October 1, 1994. Beginning April 1,
81998, an ordinance or resolution imposing or discontinuing the
9tax hereunder or effecting a change in the rate thereof shall
10either (i) be adopted and a certified copy thereof filed with
11the Department on or before the first day of April, whereupon
12the Department shall proceed to administer and enforce this
13Section as of the first day of July next following the adoption
14and filing; or (ii) be adopted and a certified copy thereof
15filed with the Department on or before the first day of
16October, whereupon the Department shall proceed to administer
17and enforce this Section as of the first day of January next
18following the adoption and filing.
19    Any unobligated balance remaining in the Municipal
20Retailers' Occupation Tax Fund on December 31, 1989, which
21fund was abolished by Public Act 85-1135, and all receipts of
22municipal tax as a result of audits of liability periods prior
23to January 1, 1990, shall be paid into the Local Government Tax
24Fund, for distribution as provided by this Section prior to
25the enactment of Public Act 85-1135. All receipts of municipal
26tax as a result of an assessment not arising from an audit, for

 

 

10200HB1539sam001- 465 -LRB102 03555 HLH 39048 a

1liability periods prior to January 1, 1990, shall be paid into
2the Local Government Tax Fund for distribution before July 1,
31990, as provided by this Section prior to the enactment of
4Public Act 85-1135, and on and after July 1, 1990, all such
5receipts shall be distributed as provided in Section 6z-18 of
6the State Finance Act.
7    As used in this Section, "municipal" and "municipality"
8means a city, village or incorporated town, including an
9incorporated town which has superseded a civil township.
10    This Section shall be known and may be cited as the Home
11Rule Municipal Service Occupation Tax Act.
12(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
13100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
147-12-19; 101-604, eff. 12-13-19.)
 
15    (65 ILCS 5/11-74.3-6)
16    Sec. 11-74.3-6. Business district revenue and obligations;
17business district tax allocation fund.
18    (a) If the corporate authorities of a municipality have
19approved a business district plan, have designated a business
20district, and have elected to impose a tax by ordinance
21pursuant to subsection (10) or (11) of Section 11-74.3-3, then
22each year after the date of the approval of the ordinance but
23terminating upon the date all business district project costs
24and all obligations paying or reimbursing business district
25project costs, if any, have been paid, but in no event later

 

 

10200HB1539sam001- 466 -LRB102 03555 HLH 39048 a

1than the dissolution date, all amounts generated by the
2retailers' occupation tax and service occupation tax shall be
3collected and the tax shall be enforced by the Department of
4Revenue in the same manner as all retailers' occupation taxes
5and service occupation taxes imposed in the municipality
6imposing the tax and all amounts generated by the hotel
7operators' occupation tax shall be collected and the tax shall
8be enforced by the municipality in the same manner as all hotel
9operators' occupation taxes imposed in the municipality
10imposing the tax. The corporate authorities of the
11municipality shall deposit the proceeds of the taxes imposed
12under subsections (10) and (11) of Section 11-74.3-3 into a
13special fund of the municipality called the "[Name of]
14Business District Tax Allocation Fund" for the purpose of
15paying or reimbursing business district project costs and
16obligations incurred in the payment of those costs.
17    (b) The corporate authorities of a municipality that has
18designated a business district under this Law may, by
19ordinance, impose a Business District Retailers' Occupation
20Tax upon all persons engaged in the business of selling
21tangible personal property, other than an item of tangible
22personal property titled or registered with an agency of this
23State's government, at retail in the business district at a
24rate not to exceed 1% of the gross receipts from the sales made
25in the course of such business, to be imposed only in 0.25%
26increments. The tax may not be imposed on tangible personal

 

 

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1property taxed at the rate of 1% under the Retailers'
2Occupation Tax Act (or at the 0% rate imposed under this
3amendatory Act of the 102nd General Assembly). Beginning
4December 1, 2019 and through December 31, 2020, this tax is not
5imposed on sales of aviation fuel unless the tax revenue is
6expended for airport-related purposes. If the District does
7not have an airport-related purpose to which it dedicates
8aviation fuel tax revenue, then aviation fuel is excluded from
9the tax. Each municipality must comply with the certification
10requirements for airport-related purposes under Section 2-22
11of the Retailers' Occupation Tax Act. For purposes of this
12Section, "airport-related purposes" has the meaning ascribed
13in Section 6z-20.2 of the State Finance Act. Beginning January
141, 2021, this tax is not imposed on sales of aviation fuel for
15so long as the revenue use requirements of 49 U.S.C. 47107(b)
16and 49 U.S.C. 47133 are binding on the District.
17    The tax imposed under this subsection and all civil
18penalties that may be assessed as an incident thereof shall be
19collected and enforced by the Department of Revenue. The
20certificate of registration that is issued by the Department
21to a retailer under the Retailers' Occupation Tax Act shall
22permit the retailer to engage in a business that is taxable
23under any ordinance or resolution enacted pursuant to this
24subsection without registering separately with the Department
25under such ordinance or resolution or under this subsection.
26The Department of Revenue shall have full power to administer

 

 

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1and enforce this subsection; to collect all taxes and
2penalties due under this subsection in the manner hereinafter
3provided; and to determine all rights to credit memoranda
4arising on account of the erroneous payment of tax or penalty
5under this subsection. In the administration of, and
6compliance with, this subsection, the Department and persons
7who are subject to this subsection shall have the same rights,
8remedies, privileges, immunities, powers and duties, and be
9subject to the same conditions, restrictions, limitations,
10penalties, exclusions, exemptions, and definitions of terms
11and employ the same modes of procedure, as are prescribed in
12Sections 1, 1a through 1o, 2 through 2-65 (in respect to all
13provisions therein other than the State rate of tax), 2c
14through 2h, 3 (except as to the disposition of taxes and
15penalties collected, and except that the retailer's discount
16is not allowed for taxes paid on aviation fuel that are subject
17to the revenue use requirements of 49 U.S.C. 47107(b) and 49
18U.S.C. 47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6,
196a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the Retailers'
20Occupation Tax Act and all provisions of the Uniform Penalty
21and Interest Act, as fully as if those provisions were set
22forth herein.
23    Persons subject to any tax imposed under this subsection
24may reimburse themselves for their seller's tax liability
25under this subsection by separately stating the tax as an
26additional charge, which charge may be stated in combination,

 

 

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1in a single amount, with State taxes that sellers are required
2to collect under the Use Tax Act, in accordance with such
3bracket schedules as the Department may prescribe.
4    Whenever the Department determines that a refund should be
5made under this subsection to a claimant instead of issuing a
6credit memorandum, the Department shall notify the State
7Comptroller, who shall cause the order to be drawn for the
8amount specified and to the person named in the notification
9from the Department. The refund shall be paid by the State
10Treasurer out of the business district retailers' occupation
11tax fund or the Local Government Aviation Trust Fund, as
12appropriate.
13    Except as otherwise provided in this paragraph, the
14Department shall immediately pay over to the State Treasurer,
15ex officio, as trustee, all taxes, penalties, and interest
16collected under this subsection for deposit into the business
17district retailers' occupation tax fund. Taxes and penalties
18collected on aviation fuel sold on or after December 1, 2019,
19shall be immediately paid over by the Department to the State
20Treasurer, ex officio, as trustee, for deposit into the Local
21Government Aviation Trust Fund. The Department shall only pay
22moneys into the Local Government Aviation Trust Fund under
23this Section for so long as the revenue use requirements of 49
24U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
25District.
26    As soon as possible after the first day of each month,

 

 

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1beginning January 1, 2011, upon certification of the
2Department of Revenue, the Comptroller shall order
3transferred, and the Treasurer shall transfer, to the STAR
4Bonds Revenue Fund the local sales tax increment, as defined
5in the Innovation Development and Economy Act, collected under
6this subsection during the second preceding calendar month for
7sales within a STAR bond district.
8    After the monthly transfer to the STAR Bonds Revenue Fund,
9on or before the 25th day of each calendar month, the
10Department shall prepare and certify to the Comptroller the
11disbursement of stated sums of money to named municipalities
12from the business district retailers' occupation tax fund, the
13municipalities to be those from which retailers have paid
14taxes or penalties under this subsection to the Department
15during the second preceding calendar month. The amount to be
16paid to each municipality shall be the amount (not including
17credit memoranda and not including taxes and penalties
18collected on aviation fuel sold on or after December 1, 2019)
19collected under this subsection during the second preceding
20calendar month by the Department plus an amount the Department
21determines is necessary to offset any amounts that were
22erroneously paid to a different taxing body, and not including
23an amount equal to the amount of refunds made during the second
24preceding calendar month by the Department, less 2% of that
25amount (except the amount collected on aviation fuel sold on
26or after December 1, 2019), which shall be deposited into the

 

 

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1Tax Compliance and Administration Fund and shall be used by
2the Department, subject to appropriation, to cover the costs
3of the Department in administering and enforcing the
4provisions of this subsection, on behalf of such municipality,
5and not including any amount that the Department determines is
6necessary to offset any amounts that were payable to a
7different taxing body but were erroneously paid to the
8municipality, and not including any amounts that are
9transferred to the STAR Bonds Revenue Fund. Within 10 days
10after receipt by the Comptroller of the disbursement
11certification to the municipalities provided for in this
12subsection to be given to the Comptroller by the Department,
13the Comptroller shall cause the orders to be drawn for the
14respective amounts in accordance with the directions contained
15in the certification. The proceeds of the tax paid to
16municipalities under this subsection shall be deposited into
17the Business District Tax Allocation Fund by the municipality.
18    An ordinance imposing or discontinuing the tax under this
19subsection or effecting a change in the rate thereof shall
20either (i) be adopted and a certified copy thereof filed with
21the Department on or before the first day of April, whereupon
22the Department, if all other requirements of this subsection
23are met, shall proceed to administer and enforce this
24subsection as of the first day of July next following the
25adoption and filing; or (ii) be adopted and a certified copy
26thereof filed with the Department on or before the first day of

 

 

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1October, whereupon, if all other requirements of this
2subsection are met, the Department shall proceed to administer
3and enforce this subsection as of the first day of January next
4following the adoption and filing.
5    The Department of Revenue shall not administer or enforce
6an ordinance imposing, discontinuing, or changing the rate of
7the tax under this subsection, until the municipality also
8provides, in the manner prescribed by the Department, the
9boundaries of the business district and each address in the
10business district in such a way that the Department can
11determine by its address whether a business is located in the
12business district. The municipality must provide this boundary
13and address information to the Department on or before April 1
14for administration and enforcement of the tax under this
15subsection by the Department beginning on the following July 1
16and on or before October 1 for administration and enforcement
17of the tax under this subsection by the Department beginning
18on the following January 1. The Department of Revenue shall
19not administer or enforce any change made to the boundaries of
20a business district or address change, addition, or deletion
21until the municipality reports the boundary change or address
22change, addition, or deletion to the Department in the manner
23prescribed by the Department. The municipality must provide
24this boundary change information or address change, addition,
25or deletion to the Department on or before April 1 for
26administration and enforcement by the Department of the change

 

 

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1beginning on the following July 1 and on or before October 1
2for administration and enforcement by the Department of the
3change beginning on the following January 1. The retailers in
4the business district shall be responsible for charging the
5tax imposed under this subsection. If a retailer is
6incorrectly included or excluded from the list of those
7required to collect the tax under this subsection, both the
8Department of Revenue and the retailer shall be held harmless
9if they reasonably relied on information provided by the
10municipality.
11    A municipality that imposes the tax under this subsection
12must submit to the Department of Revenue any other information
13as the Department may require for the administration and
14enforcement of the tax.
15    When certifying the amount of a monthly disbursement to a
16municipality under this subsection, the Department shall
17increase or decrease the amount by an amount necessary to
18offset any misallocation of previous disbursements. The offset
19amount shall be the amount erroneously disbursed within the
20previous 6 months from the time a misallocation is discovered.
21    Nothing in this subsection shall be construed to authorize
22the municipality to impose a tax upon the privilege of
23engaging in any business which under the Constitution of the
24United States may not be made the subject of taxation by this
25State.
26    If a tax is imposed under this subsection (b), a tax shall

 

 

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1also be imposed under subsection (c) of this Section.
2    (c) If a tax has been imposed under subsection (b), a
3Business District Service Occupation Tax shall also be imposed
4upon all persons engaged, in the business district, in the
5business of making sales of service, who, as an incident to
6making those sales of service, transfer tangible personal
7property within the business district, either in the form of
8tangible personal property or in the form of real estate as an
9incident to a sale of service. The tax shall be imposed at the
10same rate as the tax imposed in subsection (b) and shall not
11exceed 1% of the selling price of tangible personal property
12so transferred within the business district, to be imposed
13only in 0.25% increments. The tax may not be imposed on
14tangible personal property taxed at the 1% rate under the
15Service Occupation Tax Act (or at the 0% rate imposed under
16this amendatory Act of the 102nd General Assembly). Beginning
17December 1, 2019, this tax is not imposed on sales of aviation
18fuel unless the tax revenue is expended for airport-related
19purposes. If the District does not have an airport-related
20purpose to which it dedicates aviation fuel tax revenue, then
21aviation fuel is excluded from the tax. Each municipality must
22comply with the certification requirements for airport-related
23purposes under Section 2-22 of the Retailers' Occupation Tax
24Act. For purposes of this Act, "airport-related purposes" has
25the meaning ascribed in Section 6z-20.2 of the State Finance
26Act. Beginning January 1, 2021, this tax is not imposed on

 

 

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1sales of aviation fuel for so long as the revenue use
2requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
3binding on the District.
4    The tax imposed under this subsection and all civil
5penalties that may be assessed as an incident thereof shall be
6collected and enforced by the Department of Revenue. The
7certificate of registration which is issued by the Department
8to a retailer under the Retailers' Occupation Tax Act or under
9the Service Occupation Tax Act shall permit such registrant to
10engage in a business which is taxable under any ordinance or
11resolution enacted pursuant to this subsection without
12registering separately with the Department under such
13ordinance or resolution or under this subsection. The
14Department of Revenue shall have full power to administer and
15enforce this subsection; to collect all taxes and penalties
16due under this subsection; to dispose of taxes and penalties
17so collected in the manner hereinafter provided; and to
18determine all rights to credit memoranda arising on account of
19the erroneous payment of tax or penalty under this subsection.
20In the administration of, and compliance with this subsection,
21the Department and persons who are subject to this subsection
22shall have the same rights, remedies, privileges, immunities,
23powers and duties, and be subject to the same conditions,
24restrictions, limitations, penalties, exclusions, exemptions,
25and definitions of terms and employ the same modes of
26procedure as are prescribed in Sections 2, 2a through 2d, 3

 

 

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1through 3-50 (in respect to all provisions therein other than
2the State rate of tax), 4 (except that the reference to the
3State shall be to the business district), 5, 7, 8 (except that
4the jurisdiction to which the tax shall be a debt to the extent
5indicated in that Section 8 shall be the municipality), 9
6(except as to the disposition of taxes and penalties
7collected, and except that the returned merchandise credit for
8this tax may not be taken against any State tax, and except
9that the retailer's discount is not allowed for taxes paid on
10aviation fuel that are subject to the revenue use requirements
11of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except
12the reference therein to Section 2b of the Retailers'
13Occupation Tax Act), 13 (except that any reference to the
14State shall mean the municipality), the first paragraph of
15Section 15, and Sections 16, 17, 18, 19 and 20 of the Service
16Occupation Tax Act and all provisions of the Uniform Penalty
17and Interest Act, as fully as if those provisions were set
18forth herein.
19    Persons subject to any tax imposed under the authority
20granted in this subsection may reimburse themselves for their
21serviceman's tax liability hereunder by separately stating the
22tax as an additional charge, which charge may be stated in
23combination, in a single amount, with State tax that
24servicemen are authorized to collect under the Service Use Tax
25Act, in accordance with such bracket schedules as the
26Department may prescribe.

 

 

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1    Whenever the Department determines that a refund should be
2made under this subsection to a claimant instead of issuing
3credit memorandum, the Department shall notify the State
4Comptroller, who shall cause the order to be drawn for the
5amount specified, and to the person named, in such
6notification from the Department. Such refund shall be paid by
7the State Treasurer out of the business district retailers'
8occupation tax fund or the Local Government Aviation Trust
9Fund, as appropriate.
10    Except as otherwise provided in this paragraph, the
11Department shall forthwith pay over to the State Treasurer,
12ex-officio, as trustee, all taxes, penalties, and interest
13collected under this subsection for deposit into the business
14district retailers' occupation tax fund. Taxes and penalties
15collected on aviation fuel sold on or after December 1, 2019,
16shall be immediately paid over by the Department to the State
17Treasurer, ex officio, as trustee, for deposit into the Local
18Government Aviation Trust Fund. The Department shall only pay
19moneys into the Local Government Aviation Trust Fund under
20this Section 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
22District.
23    As soon as possible after the first day of each month,
24beginning January 1, 2011, upon certification of the
25Department of Revenue, the Comptroller shall order
26transferred, and the Treasurer shall transfer, to the STAR

 

 

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1Bonds Revenue Fund the local sales tax increment, as defined
2in the Innovation Development and Economy Act, collected under
3this subsection during the second preceding calendar month for
4sales within a STAR bond district.
5    After the monthly transfer to the STAR Bonds Revenue Fund,
6on or before the 25th day of each calendar month, the
7Department shall prepare and certify to the Comptroller the
8disbursement of stated sums of money to named municipalities
9from the business district retailers' occupation tax fund, the
10municipalities to be those from which suppliers and servicemen
11have paid taxes or penalties under this subsection to the
12Department during the second preceding calendar month. The
13amount to be paid to each municipality shall be the amount (not
14including credit memoranda and not including taxes and
15penalties collected on aviation fuel sold on or after December
161, 2019) collected under this subsection during the second
17preceding calendar month by the Department, less 2% of that
18amount (except the amount collected on aviation fuel sold on
19or after December 1, 2019), which shall be deposited into the
20Tax Compliance and Administration Fund and shall be used by
21the Department, subject to appropriation, to cover the costs
22of the Department in administering and enforcing the
23provisions of this subsection, and not including an amount
24equal to the amount of refunds made during the second
25preceding calendar month by the Department on behalf of such
26municipality, and not including any amounts that are

 

 

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1transferred to the STAR Bonds Revenue Fund. Within 10 days
2after receipt, by the Comptroller, of the disbursement
3certification to the municipalities, provided for in this
4subsection to be given to the Comptroller by the Department,
5the Comptroller shall cause the orders to be drawn for the
6respective amounts in accordance with the directions contained
7in such certification. The proceeds of the tax paid to
8municipalities under this subsection shall be deposited into
9the Business District Tax Allocation Fund by the municipality.
10    An ordinance imposing or discontinuing the tax under this
11subsection or effecting a change in the rate thereof shall
12either (i) be adopted and a certified copy thereof filed with
13the Department on or before the first day of April, whereupon
14the Department, if all other requirements of this subsection
15are met, shall proceed to administer and enforce this
16subsection as of the first day of July next following the
17adoption and filing; or (ii) be adopted and a certified copy
18thereof filed with the Department on or before the first day of
19October, whereupon, if all other conditions of this subsection
20are met, the Department shall proceed to administer and
21enforce this subsection as of the first day of January next
22following the adoption and filing.
23    The Department of Revenue shall not administer or enforce
24an ordinance imposing, discontinuing, or changing the rate of
25the tax under this subsection, until the municipality also
26provides, in the manner prescribed by the Department, the

 

 

10200HB1539sam001- 480 -LRB102 03555 HLH 39048 a

1boundaries of the business district in such a way that the
2Department can determine by its address whether a business is
3located in the business district. The municipality must
4provide this boundary and address information to the
5Department on or before April 1 for administration and
6enforcement of the tax under this subsection by the Department
7beginning on the following July 1 and on or before October 1
8for administration and enforcement of the tax under this
9subsection by the Department beginning on the following
10January 1. The Department of Revenue shall not administer or
11enforce any change made to the boundaries of a business
12district or address change, addition, or deletion until the
13municipality reports the boundary change or address change,
14addition, or deletion to the Department in the manner
15prescribed by the Department. The municipality must provide
16this boundary change information or address change, addition,
17or deletion to the Department on or before April 1 for
18administration and enforcement by the Department of the change
19beginning on the following July 1 and on or before October 1
20for administration and enforcement by the Department of the
21change beginning on the following January 1. The retailers in
22the business district shall be responsible for charging the
23tax imposed under this subsection. If a retailer is
24incorrectly included or excluded from the list of those
25required to collect the tax under this subsection, both the
26Department of Revenue and the retailer shall be held harmless

 

 

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1if they reasonably relied on information provided by the
2municipality.
3    A municipality that imposes the tax under this subsection
4must submit to the Department of Revenue any other information
5as the Department may require for the administration and
6enforcement of the tax.
7    Nothing in this subsection shall be construed to authorize
8the municipality to impose a tax upon the privilege of
9engaging in any business which under the Constitution of the
10United States may not be made the subject of taxation by the
11State.
12    If a tax is imposed under this subsection (c), a tax shall
13also be imposed under subsection (b) of this Section.
14    (d) By ordinance, a municipality that has designated a
15business district under this Law may impose an occupation tax
16upon all persons engaged in the business district in the
17business of renting, leasing, or letting rooms in a hotel, as
18defined in the Hotel Operators' Occupation Tax Act, at a rate
19not to exceed 1% of the gross rental receipts from the renting,
20leasing, or letting of hotel rooms within the business
21district, to be imposed only in 0.25% increments, excluding,
22however, from gross rental receipts the proceeds of renting,
23leasing, or letting to permanent residents of a hotel, as
24defined in the Hotel Operators' Occupation Tax Act, and
25proceeds from the tax imposed under subsection (c) of Section
2613 of the Metropolitan Pier and Exposition Authority Act.

 

 

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1    The tax imposed by the municipality under this subsection
2and all civil penalties that may be assessed as an incident to
3that tax shall be collected and enforced by the municipality
4imposing the tax. The municipality shall have full power to
5administer and enforce this subsection, to collect all taxes
6and penalties due under this subsection, to dispose of taxes
7and penalties so collected in the manner provided in this
8subsection, and to determine all rights to credit memoranda
9arising on account of the erroneous payment of tax or penalty
10under this subsection. In the administration of and compliance
11with this subsection, the municipality and persons who are
12subject to this subsection shall have the same rights,
13remedies, privileges, immunities, powers, and duties, shall be
14subject to the same conditions, restrictions, limitations,
15penalties, and definitions of terms, and shall employ the same
16modes of procedure as are employed with respect to a tax
17adopted by the municipality under Section 8-3-14 of this Code.
18    Persons subject to any tax imposed under the authority
19granted in this subsection may reimburse themselves for their
20tax liability for that tax by separately stating that tax as an
21additional charge, which charge may be stated in combination,
22in a single amount, with State taxes imposed under the Hotel
23Operators' Occupation Tax Act, and with any other tax.
24    Nothing in this subsection shall be construed to authorize
25a municipality to impose a tax upon the privilege of engaging
26in any business which under the Constitution of the United

 

 

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1States may not be made the subject of taxation by this State.
2    The proceeds of the tax imposed under this subsection
3shall be deposited into the Business District Tax Allocation
4Fund.
5    (e) Obligations secured by the Business District Tax
6Allocation Fund may be issued to provide for the payment or
7reimbursement of business district project costs. Those
8obligations, when so issued, shall be retired in the manner
9provided in the ordinance authorizing the issuance of those
10obligations by the receipts of taxes imposed pursuant to
11subsections (10) and (11) of Section 11-74.3-3 and by other
12revenue designated or pledged by the municipality. A
13municipality may in the ordinance pledge, for any period of
14time up to and including the dissolution date, all or any part
15of the funds in and to be deposited in the Business District
16Tax Allocation Fund to the payment of business district
17project costs and obligations. Whenever a municipality pledges
18all of the funds to the credit of a business district tax
19allocation fund to secure obligations issued or to be issued
20to pay or reimburse business district project costs, the
21municipality may specifically provide that funds remaining to
22the credit of such business district tax allocation fund after
23the payment of such obligations shall be accounted for
24annually and shall be deemed to be "surplus" funds, and such
25"surplus" funds shall be expended by the municipality for any
26business district project cost as approved in the business

 

 

10200HB1539sam001- 484 -LRB102 03555 HLH 39048 a

1district plan. Whenever a municipality pledges less than all
2of the monies to the credit of a business district tax
3allocation fund to secure obligations issued or to be issued
4to pay or reimburse business district project costs, the
5municipality shall provide that monies to the credit of the
6business district tax allocation fund and not subject to such
7pledge or otherwise encumbered or required for payment of
8contractual obligations for specific business district project
9costs shall be calculated annually and shall be deemed to be
10"surplus" funds, and such "surplus" funds shall be expended by
11the municipality for any business district project cost as
12approved in the business district plan.
13    No obligation issued pursuant to this Law and secured by a
14pledge of all or any portion of any revenues received or to be
15received by the municipality from the imposition of taxes
16pursuant to subsection (10) of Section 11-74.3-3, shall be
17deemed to constitute an economic incentive agreement under
18Section 8-11-20, notwithstanding the fact that such pledge
19provides for the sharing, rebate, or payment of retailers'
20occupation taxes or service occupation taxes imposed pursuant
21to subsection (10) of Section 11-74.3-3 and received or to be
22received by the municipality from the development or
23redevelopment of properties in the business district.
24    Without limiting the foregoing in this Section, the
25municipality may further secure obligations secured by the
26business district tax allocation fund with a pledge, for a

 

 

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1period not greater than the term of the obligations and in any
2case not longer than the dissolution date, of any part or any
3combination of the following: (i) net revenues of all or part
4of any business district project; (ii) taxes levied or imposed
5by the municipality on any or all property in the
6municipality, including, specifically, taxes levied or imposed
7by the municipality in a special service area pursuant to the
8Special Service Area Tax Law; (iii) the full faith and credit
9of the municipality; (iv) a mortgage on part or all of the
10business district project; or (v) any other taxes or
11anticipated receipts that the municipality may lawfully
12pledge.
13    Such obligations may be issued in one or more series, bear
14such date or dates, become due at such time or times as therein
15provided, but in any case not later than (i) 20 years after the
16date of issue or (ii) the dissolution date, whichever is
17earlier, bear interest payable at such intervals and at such
18rate or rates as set forth therein, except as may be limited by
19applicable law, which rate or rates may be fixed or variable,
20be in such denominations, be in such form, either coupon,
21registered, or book-entry, carry such conversion, registration
22and exchange privileges, be subject to defeasance upon such
23terms, have such rank or priority, be executed in such manner,
24be payable in such medium or payment at such place or places
25within or without the State, make provision for a corporate
26trustee within or without the State with respect to such

 

 

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1obligations, prescribe the rights, powers, and duties thereof
2to be exercised for the benefit of the municipality and the
3benefit of the owners of such obligations, provide for the
4holding in trust, investment, and use of moneys, funds, and
5accounts held under an ordinance, provide for assignment of
6and direct payment of the moneys to pay such obligations or to
7be deposited into such funds or accounts directly to such
8trustee, be subject to such terms of redemption with or
9without premium, and be sold at such price, all as the
10corporate authorities shall determine. No referendum approval
11of the electors shall be required as a condition to the
12issuance of obligations pursuant to this Law except as
13provided in this Section.
14    In the event the municipality authorizes the issuance of
15obligations pursuant to the authority of this Law secured by
16the full faith and credit of the municipality, or pledges ad
17valorem taxes pursuant to this subsection, which obligations
18are other than obligations which may be issued under home rule
19powers provided by Section 6 of Article VII of the Illinois
20Constitution or which ad valorem taxes are other than ad
21valorem taxes which may be pledged under home rule powers
22provided by Section 6 of Article VII of the Illinois
23Constitution or which are levied in a special service area
24pursuant to the Special Service Area Tax Law, the ordinance
25authorizing the issuance of those obligations or pledging
26those taxes shall be published within 10 days after the

 

 

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1ordinance has been adopted, in a newspaper having a general
2circulation within the municipality. The publication of the
3ordinance shall be accompanied by a notice of (i) the specific
4number of voters required to sign a petition requesting the
5question of the issuance of the obligations or pledging such
6ad valorem taxes to be submitted to the electors; (ii) the time
7within which the petition must be filed; and (iii) the date of
8the prospective referendum. The municipal clerk shall provide
9a petition form to any individual requesting one.
10    If no petition is filed with the municipal clerk, as
11hereinafter provided in this Section, within 21 days after the
12publication of the ordinance, the ordinance shall be in
13effect. However, if within that 21-day period a petition is
14filed with the municipal clerk, signed by electors numbering
15not less than 15% of the number of electors voting for the
16mayor or president at the last general municipal election,
17asking that the question of issuing obligations using full
18faith and credit of the municipality as security for the cost
19of paying or reimbursing business district project costs, or
20of pledging such ad valorem taxes for the payment of those
21obligations, or both, be submitted to the electors of the
22municipality, the municipality shall not be authorized to
23issue obligations of the municipality using the full faith and
24credit of the municipality as security or pledging such ad
25valorem taxes for the payment of those obligations, or both,
26until the proposition has been submitted to and approved by a

 

 

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1majority of the voters voting on the proposition at a
2regularly scheduled election. The municipality shall certify
3the proposition to the proper election authorities for
4submission in accordance with the general election law.
5    The ordinance authorizing the obligations may provide that
6the obligations shall contain a recital that they are issued
7pursuant to this Law, which recital shall be conclusive
8evidence of their validity and of the regularity of their
9issuance.
10    In the event the municipality authorizes issuance of
11obligations pursuant to this Law secured by the full faith and
12credit of the municipality, the ordinance authorizing the
13obligations may provide for the levy and collection of a
14direct annual tax upon all taxable property within the
15municipality sufficient to pay the principal thereof and
16interest thereon as it matures, which levy may be in addition
17to and exclusive of the maximum of all other taxes authorized
18to be levied by the municipality, which levy, however, shall
19be abated to the extent that monies from other sources are
20available for payment of the obligations and the municipality
21certifies the amount of those monies available to the county
22clerk.
23    A certified copy of the ordinance shall be filed with the
24county clerk of each county in which any portion of the
25municipality is situated, and shall constitute the authority
26for the extension and collection of the taxes to be deposited

 

 

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1in the business district tax allocation fund.
2    A municipality may also issue its obligations to refund,
3in whole or in part, obligations theretofore issued by the
4municipality under the authority of this Law, whether at or
5prior to maturity. However, the last maturity of the refunding
6obligations shall not be expressed to mature later than the
7dissolution date.
8    In the event a municipality issues obligations under home
9rule powers or other legislative authority, the proceeds of
10which are pledged to pay or reimburse business district
11project costs, the municipality may, if it has followed the
12procedures in conformance with this Law, retire those
13obligations from funds in the business district tax allocation
14fund in amounts and in such manner as if those obligations had
15been issued pursuant to the provisions of this Law.
16    No obligations issued pursuant to this Law shall be
17regarded as indebtedness of the municipality issuing those
18obligations or any other taxing district for the purpose of
19any limitation imposed by law.
20    Obligations issued pursuant to this Law shall not be
21subject to the provisions of the Bond Authorization Act.
22    (f) When business district project costs, including,
23without limitation, all obligations paying or reimbursing
24business district project costs have been paid, any surplus
25funds then remaining in the Business District Tax Allocation
26Fund shall be distributed to the municipal treasurer for

 

 

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1deposit into the general corporate fund of the municipality.
2Upon payment of all business district project costs and
3retirement of all obligations paying or reimbursing business
4district project costs, but in no event more than 23 years
5after the date of adoption of the ordinance imposing taxes
6pursuant to subsection (10) or (11) of Section 11-74.3-3, the
7municipality shall adopt an ordinance immediately rescinding
8the taxes imposed pursuant to subsection (10) or (11) of
9Section 11-74.3-3.
10(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19;
11101-604, eff. 12-13-19.)
 
12    Section 60-50. The Flood Prevention District Act is
13amended by changing Section 25 as follows:
 
14    (70 ILCS 750/25)
15    Sec. 25. Flood prevention retailers' and service
16occupation taxes.
17    (a) If the Board of Commissioners of a flood prevention
18district determines that an emergency situation exists
19regarding levee repair or flood prevention, and upon an
20ordinance confirming the determination adopted by the
21affirmative vote of a majority of the members of the county
22board of the county in which the district is situated, the
23county may impose a flood prevention retailers' occupation tax
24upon all persons engaged in the business of selling tangible

 

 

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1personal property at retail within the territory of the
2district to provide revenue to pay the costs of providing
3emergency levee repair and flood prevention and to secure the
4payment of bonds, notes, and other evidences of indebtedness
5issued under this Act for a period not to exceed 25 years or as
6required to repay the bonds, notes, and other evidences of
7indebtedness issued under this Act. The tax rate shall be
80.25% of the gross receipts from all taxable sales made in the
9course of that business. Beginning December 1, 2019 and
10through December 31, 2020, this tax is not imposed on sales of
11aviation fuel unless the tax revenue is expended for
12airport-related purposes. If the District does not have an
13airport-related purpose to which it dedicates aviation fuel
14tax revenue, then aviation fuel is excluded from the tax. The
15County must comply with the certification requirements for
16airport-related purposes under Section 2-22 of the Retailers'
17Occupation Tax Act. The tax imposed under this Section and all
18civil penalties that may be assessed as an incident thereof
19shall be collected and enforced by the State Department of
20Revenue. The Department shall have full power to administer
21and enforce this Section; to collect all taxes and penalties
22so collected in the manner hereinafter provided; and to
23determine all rights to credit memoranda arising on account of
24the erroneous payment of tax or penalty hereunder.
25    For purposes of this Act, "airport-related purposes" has
26the meaning ascribed in Section 6z-20.2 of the State Finance

 

 

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1Act. Beginning January 1, 2021, this tax is not imposed on
2sales of aviation fuel 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 District.
5    In the administration of and compliance with this
6subsection, the Department and persons who are subject to this
7subsection (i) have the same rights, remedies, privileges,
8immunities, powers, and duties, (ii) are subject to the same
9conditions, restrictions, limitations, penalties, and
10definitions of terms, and (iii) shall employ the same modes of
11procedure as are set forth in Sections 1 through 1o, 2 through
122-70 (in respect to all provisions contained in those Sections
13other than the State rate of tax), 2a through 2h, 3 (except as
14to the disposition of taxes and penalties collected, and
15except that the retailer's discount is not allowed for taxes
16paid on aviation fuel that are subject to the revenue use
17requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
185a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5l, 6, 6a, 6b, 6c, 6d, 7,
198, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax
20Act and all provisions of the Uniform Penalty and Interest Act
21as if those provisions were set forth in this subsection.
22    Persons subject to any tax imposed under this Section may
23reimburse themselves for their seller's tax liability
24hereunder by separately stating the tax as an additional
25charge, which charge may be stated in combination in a single
26amount with State taxes that sellers are required to collect

 

 

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1under the Use Tax Act, under any bracket schedules the
2Department may prescribe.
3    If a tax is imposed under this subsection (a), a tax shall
4also be imposed under subsection (b) of this Section.
5    (b) If a tax has been imposed under subsection (a), a flood
6prevention service occupation tax shall also be imposed upon
7all persons engaged within the territory of the district in
8the business of making sales of service, who, as an incident to
9making the sales of service, transfer tangible personal
10property, either in the form of tangible personal property or
11in the form of real estate as an incident to a sale of service
12to provide revenue to pay the costs of providing emergency
13levee repair and flood prevention and to secure the payment of
14bonds, notes, and other evidences of indebtedness issued under
15this Act for a period not to exceed 25 years or as required to
16repay the bonds, notes, and other evidences of indebtedness.
17The tax rate shall be 0.25% of the selling price of all
18tangible personal property transferred. Beginning December 1,
192019 and through December 31, 2020, this tax is not imposed on
20sales of aviation fuel unless the tax revenue is expended for
21airport-related purposes. If the District does not have an
22airport-related purpose to which it dedicates aviation fuel
23tax revenue, then aviation fuel is excluded from the tax. The
24County must comply with the certification requirements for
25airport-related purposes under Section 2-22 of the Retailers'
26Occupation Tax Act. For purposes of this Act, "airport-related

 

 

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1purposes" has the meaning ascribed in Section 6z-20.2 of the
2State Finance Act. Beginning January 1, 2021, this tax is not
3imposed on sales of aviation fuel for so long as the revenue
4use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
5binding on the District.
6    The tax imposed under this subsection and all civil
7penalties that may be assessed as an incident thereof shall be
8collected and enforced by the State Department of Revenue. The
9Department shall have full power to administer and enforce
10this subsection; to collect all taxes and penalties due
11hereunder; to dispose of taxes and penalties collected in the
12manner hereinafter provided; and to determine all rights to
13credit memoranda arising on account of the erroneous payment
14of tax or penalty hereunder.
15    In the administration of and compliance with this
16subsection, the Department and persons who are subject to this
17subsection shall (i) have the same rights, remedies,
18privileges, immunities, powers, and duties, (ii) be subject to
19the same conditions, restrictions, limitations, penalties, and
20definitions of terms, and (iii) employ the same modes of
21procedure as are set forth in Sections 2 (except that the
22reference to State in the definition of supplier maintaining a
23place of business in this State means the district), 2a
24through 2d, 3 through 3-50 (in respect to all provisions
25contained in those Sections other than the State rate of tax),
264 (except that the reference to the State shall be to the

 

 

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1district), 5, 7, 8 (except that the jurisdiction to which the
2tax is a debt to the extent indicated in that Section 8 is the
3district), 9 (except as to the disposition of taxes and
4penalties collected, and except that the retailer's discount
5is not allowed for taxes paid on aviation fuel that are subject
6to the revenue use requirements of 49 U.S.C. 47107(b) and 49
7U.S.C. 47133), 10, 11, 12 (except the reference therein to
8Section 2b of the Retailers' Occupation Tax Act), 13 (except
9that any reference to the State means the district), Section
1015, 16, 17, 18, 19, and 20 of the Service Occupation Tax Act
11and all provisions of the Uniform Penalty and Interest Act, as
12fully as if those provisions were set forth herein.
13    Persons subject to any tax imposed under the authority
14granted in this subsection may reimburse themselves for their
15serviceman's tax liability hereunder by separately stating the
16tax as an additional charge, that charge may be stated in
17combination in a single amount with State tax that servicemen
18are authorized to collect under the Service Use Tax Act, under
19any bracket schedules the Department may prescribe.
20    (c) The taxes imposed in subsections (a) and (b) may not be
21imposed on personal property titled or registered with an
22agency of the State or on personal property taxed at the 1%
23rate under the Retailers' Occupation Tax Act and the Service
24Occupation Tax Act (or at the 0% rate imposed under this
25amendatory Act of the 102nd General Assembly).
26    (d) Nothing in this Section shall be construed to

 

 

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1authorize the district to impose a tax upon the privilege of
2engaging in any business that under the Constitution of the
3United States may not be made the subject of taxation by the
4State.
5    (e) The certificate of registration that is issued by the
6Department to a retailer under the Retailers' Occupation Tax
7Act or a serviceman under the Service Occupation Tax Act
8permits the retailer or serviceman to engage in a business
9that is taxable without registering separately with the
10Department under an ordinance or resolution under this
11Section.
12    (f) Except as otherwise provided, the Department shall
13immediately pay over to the State Treasurer, ex officio, as
14trustee, all taxes and penalties collected under this Section
15to be deposited into the Flood Prevention Occupation Tax Fund,
16which shall be an unappropriated trust fund held outside the
17State treasury. Taxes and penalties collected on aviation fuel
18sold on or after December 1, 2019 and through December 31,
192020, shall be immediately paid over by the Department to the
20State Treasurer, ex officio, as trustee, for deposit into the
21Local Government Aviation Trust Fund. The Department shall
22only pay moneys into the Local Government Aviation Trust Fund
23under this Act for so long as the revenue use requirements of
2449 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
25District.
26    On or before the 25th day of each calendar month, the

 

 

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1Department shall prepare and certify to the Comptroller the
2disbursement of stated sums of money to the counties from
3which retailers or servicemen have paid taxes or penalties to
4the Department during the second preceding calendar month. The
5amount to be paid to each county is equal to the amount (not
6including credit memoranda and not including taxes and
7penalties collected on aviation fuel sold on or after December
81, 2019 and through December 31, 2020) collected from the
9county under this Section during the second preceding calendar
10month by the Department, (i) less 2% of that amount (except the
11amount collected on aviation fuel sold on or after December 1,
122019 and through December 31, 2020), which shall be deposited
13into the Tax Compliance and Administration Fund and shall be
14used by the Department in administering and enforcing the
15provisions of this Section on behalf of the county, (ii) plus
16an amount that the Department determines is necessary to
17offset any amounts that were erroneously paid to a different
18taxing body; (iii) less an amount equal to the amount of
19refunds made during the second preceding calendar month by the
20Department on behalf of the county; and (iv) less any amount
21that the Department determines is necessary to offset any
22amounts that were payable to a different taxing body but were
23erroneously paid to the county. When certifying the amount of
24a monthly disbursement to a county under this Section, the
25Department shall increase or decrease the amounts by an amount
26necessary to offset any miscalculation of previous

 

 

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1disbursements within the previous 6 months from the time a
2miscalculation is discovered.
3    Within 10 days after receipt by the Comptroller from the
4Department of the disbursement certification to the counties
5provided for in this Section, the Comptroller shall cause the
6orders to be drawn for the respective amounts in accordance
7with directions contained in the certification.
8    If the Department determines that a refund should be made
9under this Section to a claimant instead of issuing a credit
10memorandum, then the Department shall notify the Comptroller,
11who shall cause the order to be drawn for the amount specified
12and to the person named in the notification from the
13Department. The refund shall be paid by the Treasurer out of
14the Flood Prevention Occupation Tax Fund or the Local
15Government Aviation Trust Fund, as appropriate.
16    (g) If a county imposes a tax under this Section, then the
17county board shall, by ordinance, discontinue the tax upon the
18payment of all indebtedness of the flood prevention district.
19The tax shall not be discontinued until all indebtedness of
20the District has been paid.
21    (h) Any ordinance imposing the tax under this Section, or
22any ordinance that discontinues the tax, must be certified by
23the county clerk and filed with the Illinois Department of
24Revenue either (i) on or before the first day of April,
25whereupon the Department shall proceed to administer and
26enforce the tax or change in the rate as of the first day of

 

 

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1July next following the filing; or (ii) on or before the first
2day of October, whereupon the Department shall proceed to
3administer and enforce the tax or change in the rate as of the
4first day of January next following the filing.
5    (j) County Flood Prevention Occupation Tax Fund. All
6proceeds received by a county from a tax distribution under
7this Section must be maintained in a special fund known as the
8[name of county] flood prevention occupation tax fund. The
9county shall, at the direction of the flood prevention
10district, use moneys in the fund to pay the costs of providing
11emergency levee repair and flood prevention and to pay bonds,
12notes, and other evidences of indebtedness issued under this
13Act.
14    (k) This Section may be cited as the Flood Prevention
15Occupation Tax Law.
16(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19;
17101-604, eff. 12-13-19.)
 
18    Section 60-55. The Metro-East Park and Recreation District
19Act is amended by changing Section 30 as follows:
 
20    (70 ILCS 1605/30)
21    Sec. 30. Taxes.
22    (a) The board shall impose a tax upon all persons engaged
23in the business of selling tangible personal property, other
24than personal property titled or registered with an agency of

 

 

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1this State's government, at retail in the District on the
2gross receipts from the sales made in the course of business.
3This tax shall be imposed only at the rate of one-tenth of one
4per cent.
5    This additional tax may not be imposed on tangible
6personal property taxed at the 1% rate under the Retailers'
7Occupation Tax Act (or at the 0% rate imposed under this
8amendatory Act of the 102nd General Assembly). Beginning
9December 1, 2019 and through December 31, 2020, this tax is not
10imposed on sales of aviation fuel unless the tax revenue is
11expended for airport-related purposes. If the District does
12not have an airport-related purpose to which it dedicates
13aviation fuel tax revenue, then aviation fuel shall be
14excluded from tax. The board must comply with the
15certification requirements for airport-related purposes under
16Section 2-22 of the Retailers' Occupation Tax Act. For
17purposes of this Act, "airport-related purposes" has the
18meaning ascribed in Section 6z-20.2 of the State Finance Act.
19Beginning January 1, 2021, this tax is not imposed on sales of
20aviation fuel 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
22District. The tax imposed by the Board under this Section and
23all civil penalties that may be assessed as an incident of the
24tax shall be collected and enforced by the Department of
25Revenue. The certificate of registration that is issued by the
26Department to a retailer under the Retailers' Occupation Tax

 

 

10200HB1539sam001- 501 -LRB102 03555 HLH 39048 a

1Act shall permit the retailer to engage in a business that is
2taxable without registering separately with the Department
3under an ordinance or resolution under this Section. The
4Department has full power to administer and enforce this
5Section, to collect all taxes and penalties due under this
6Section, to dispose of taxes and penalties so collected in the
7manner provided in this Section, and to determine all rights
8to credit memoranda arising on account of the erroneous
9payment of a tax or penalty under this Section. In the
10administration of and compliance with this Section, the
11Department and persons who are subject to this Section shall
12(i) have the same rights, remedies, privileges, immunities,
13powers, and duties, (ii) be subject to the same conditions,
14restrictions, limitations, penalties, and definitions of
15terms, and (iii) employ the same modes of procedure as are
16prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
171n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
18contained in those Sections other than the State rate of tax),
192-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except provisions
20relating to transaction returns and quarter monthly payments,
21and except that the retailer's discount is not allowed for
22taxes paid on aviation fuel that are subject to the revenue use
23requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
245a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c,
256d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
26Occupation Tax Act and the Uniform Penalty and Interest Act as

 

 

10200HB1539sam001- 502 -LRB102 03555 HLH 39048 a

1if those provisions were set forth in this Section.
2    Persons subject to any tax imposed under the authority
3granted in this Section may reimburse themselves for their
4sellers' tax liability by separately stating the tax as an
5additional charge, which charge may be stated in combination,
6in a single amount, with State tax which sellers are required
7to collect under the Use Tax Act, pursuant to such bracketed
8schedules as the Department may prescribe.
9    Whenever the Department determines that a refund should be
10made under this Section to a claimant instead of issuing a
11credit memorandum, the Department shall notify the State
12Comptroller, who shall cause the order to be drawn for the
13amount specified and to the person named in the notification
14from the Department. The refund shall be paid by the State
15Treasurer out of the State Metro-East Park and Recreation
16District Fund or the Local Government Aviation Trust Fund, as
17appropriate.
18    (b) If a tax has been imposed under subsection (a), a
19service occupation tax shall also be imposed at the same rate
20upon all persons engaged, in the District, in the business of
21making sales of service, who, as an incident to making those
22sales of service, transfer tangible personal property within
23the District as an incident to a sale of service. This tax may
24not be imposed on tangible personal property taxed at the 1%
25rate under the Service Occupation Tax Act (or at the 0% rate
26imposed under this amendatory Act of the 102nd General

 

 

10200HB1539sam001- 503 -LRB102 03555 HLH 39048 a

1Assembly). Beginning December 1, 2019 and through December 31,
22020, this tax may not be imposed on sales of aviation fuel
3unless the tax revenue is expended for airport-related
4purposes. If the District does not have an airport-related
5purpose to which it dedicates aviation fuel tax revenue, then
6aviation fuel shall be excluded from tax. The board must
7comply with the certification requirements for airport-related
8purposes under Section 2-22 of the Retailers' Occupation Tax
9Act. For purposes of this Act, "airport-related purposes" has
10the meaning ascribed in Section 6z-20.2 of the State Finance
11Act. Beginning January 1, 2021, this tax is not imposed on
12sales of aviation fuel for so long as the revenue use
13requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
14binding on the District. The tax imposed under this subsection
15and all civil penalties that may be assessed as an incident
16thereof shall be collected and enforced by the Department of
17Revenue. The Department has full power to administer and
18enforce this subsection; to collect all taxes and penalties
19due hereunder; to dispose of taxes and penalties so collected
20in the manner hereinafter provided; and to determine all
21rights to credit memoranda arising on account of the erroneous
22payment of tax or penalty hereunder. In the administration of,
23and compliance with this subsection, the Department and
24persons who are subject to this paragraph shall (i) have the
25same rights, remedies, privileges, immunities, powers, and
26duties, (ii) be subject to the same conditions, restrictions,

 

 

10200HB1539sam001- 504 -LRB102 03555 HLH 39048 a

1limitations, penalties, exclusions, exemptions, and
2definitions of terms, and (iii) employ the same modes of
3procedure as are prescribed in Sections 2 (except that the
4reference to State in the definition of supplier maintaining a
5place of business in this State shall mean the District), 2a,
62b, 2c, 3 through 3-50 (in respect to all provisions therein
7other than the State rate of tax), 4 (except that the reference
8to the State shall be to the District), 5, 7, 8 (except that
9the jurisdiction to which the tax shall be a debt to the extent
10indicated in that Section 8 shall be the District), 9 (except
11as to the disposition of taxes and penalties collected, and
12except that the retailer's discount is not allowed for taxes
13paid on aviation fuel that are subject to the revenue use
14requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
1511, 12 (except the reference therein to Section 2b of the
16Retailers' Occupation Tax Act), 13 (except that any reference
17to the State shall mean the District), Sections 15, 16, 17, 18,
1819 and 20 of the Service Occupation Tax Act and the Uniform
19Penalty and Interest Act, as fully as if those provisions were
20set forth herein.
21    Persons subject to any tax imposed under the authority
22granted in this subsection may reimburse themselves for their
23serviceman's tax liability by separately stating the tax as an
24additional charge, which charge may be stated in combination,
25in a single amount, with State tax that servicemen are
26authorized to collect under the Service Use Tax Act, in

 

 

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1accordance with such bracket schedules as the Department may
2prescribe.
3    Whenever the Department determines that a refund should be
4made under this subsection to a claimant instead of issuing a
5credit memorandum, the Department shall notify the State
6Comptroller, who shall cause the warrant to be drawn for the
7amount specified, and to the person named, in the notification
8from the Department. The refund shall be paid by the State
9Treasurer out of the State Metro-East Park and Recreation
10District Fund or the Local Government Aviation Trust Fund, as
11appropriate.
12    Nothing in this subsection shall be construed to authorize
13the board to impose a tax upon the privilege of engaging in any
14business which under the Constitution of the United States may
15not be made the subject of taxation by the State.
16    (c) Except as otherwise provided in this paragraph, the
17Department shall immediately pay over to the State Treasurer,
18ex officio, as trustee, all taxes and penalties collected
19under this Section to be deposited into the State Metro-East
20Park and Recreation District Fund, which shall be an
21unappropriated trust fund held outside of the State treasury.
22Taxes and penalties collected on aviation fuel sold on or
23after December 1, 2019 and through December 31, 2020, shall be
24immediately paid over by the Department to the State
25Treasurer, ex officio, as trustee, for deposit into the Local
26Government Aviation Trust Fund. The Department shall only pay

 

 

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1moneys into the Local Government Aviation Trust Fund under
2this Act 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
4District.
5    As soon as possible after the first day of each month,
6beginning January 1, 2011, upon certification of the
7Department of Revenue, the Comptroller shall order
8transferred, and the Treasurer shall transfer, to the STAR
9Bonds Revenue Fund the local sales tax increment, as defined
10in the Innovation Development and Economy Act, collected under
11this Section during the second preceding calendar month for
12sales within a STAR bond district. The Department shall make
13this certification only if the Metro East Park and Recreation
14District imposes a tax on real property as provided in the
15definition of "local sales taxes" under the Innovation
16Development and Economy Act.
17    After the monthly transfer to the STAR Bonds Revenue Fund,
18on or before the 25th day of each calendar month, the
19Department shall prepare and certify to the Comptroller the
20disbursement of stated sums of money pursuant to Section 35 of
21this Act to the District from which retailers have paid taxes
22or penalties to the Department during the second preceding
23calendar month. The amount to be paid to the District shall be
24the amount (not including credit memoranda and not including
25taxes and penalties collected on aviation fuel sold on or
26after December 1, 2019 and through December 31, 2020)

 

 

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1collected under this Section during the second preceding
2calendar month by the Department plus an amount the Department
3determines is necessary to offset any amounts that were
4erroneously paid to a different taxing body, and not including
5(i) an amount equal to the amount of refunds made during the
6second preceding calendar month by the Department on behalf of
7the District, (ii) any amount that the Department determines
8is necessary to offset any amounts that were payable to a
9different taxing body but were erroneously paid to the
10District, (iii) any amounts that are transferred to the STAR
11Bonds Revenue Fund, and (iv) 1.5% of the remainder, which the
12Department shall transfer into the Tax Compliance and
13Administration Fund. The Department, at the time of each
14monthly disbursement to the District, shall prepare and
15certify to the State Comptroller the amount to be transferred
16into the Tax Compliance and Administration Fund under this
17subsection. Within 10 days after receipt by the Comptroller of
18the disbursement certification to the District and the Tax
19Compliance and Administration Fund provided for in this
20Section to be given to the Comptroller by the Department, the
21Comptroller shall cause the orders to be drawn for the
22respective amounts in accordance with directions contained in
23the certification.
24    (d) For the purpose of determining whether a tax
25authorized under this Section is applicable, a retail sale by
26a producer of coal or another mineral mined in Illinois is a

 

 

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1sale at retail at the place where the coal or other mineral
2mined in Illinois is extracted from the earth. This paragraph
3does not apply to coal or another mineral when it is delivered
4or shipped by the seller to the purchaser at a point outside
5Illinois so that the sale is exempt under the United States
6Constitution as a sale in interstate or foreign commerce.
7    (e) Nothing in this Section shall be construed to
8authorize the board to impose a tax upon the privilege of
9engaging in any business that under the Constitution of the
10United States may not be made the subject of taxation by this
11State.
12    (f) An ordinance imposing a tax under this Section or an
13ordinance extending the imposition of a tax to an additional
14county or counties shall be certified by the board and filed
15with the Department of Revenue either (i) on or before the
16first day of April, whereupon the Department shall proceed to
17administer and enforce the tax as of the first day of July next
18following the filing; or (ii) on or before the first day of
19October, whereupon the Department shall proceed to administer
20and enforce the tax as of the first day of January next
21following the filing.
22    (g) When certifying the amount of a monthly disbursement
23to the District under this Section, the Department shall
24increase or decrease the amounts by an amount necessary to
25offset any misallocation of previous disbursements. The offset
26amount shall be the amount erroneously disbursed within the

 

 

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1previous 6 months from the time a misallocation is discovered.
2(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
3100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
47-12-19; 101-604, eff. 12-13-19.)
 
5    Section 60-60. The Regional Transportation Authority Act
6is amended by changing Section 4.03 as follows:
 
7    (70 ILCS 3615/4.03)  (from Ch. 111 2/3, par. 704.03)
8    Sec. 4.03. Taxes.
9    (a) In order to carry out any of the powers or purposes of
10the Authority, the Board may by ordinance adopted with the
11concurrence of 12 of the then Directors, impose throughout the
12metropolitan region any or all of the taxes provided in this
13Section. Except as otherwise provided in this Act, taxes
14imposed under this Section and civil penalties imposed
15incident thereto shall be collected and enforced by the State
16Department of Revenue. The Department shall have the power to
17administer and enforce the taxes and to determine all rights
18for refunds for erroneous payments of the taxes. Nothing in
19Public Act 95-708 is intended to invalidate any taxes
20currently imposed by the Authority. The increased vote
21requirements to impose a tax shall only apply to actions taken
22after January 1, 2008 (the effective date of Public Act
2395-708).
24    (b) The Board may impose a public transportation tax upon

 

 

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1all persons engaged in the metropolitan region in the business
2of selling at retail motor fuel for operation of motor
3vehicles upon public highways. The tax shall be at a rate not
4to exceed 5% of the gross receipts from the sales of motor fuel
5in the course of the business. As used in this Act, the term
6"motor fuel" shall have the same meaning as in the Motor Fuel
7Tax Law. The Board may provide for details of the tax. The
8provisions of any tax shall conform, as closely as may be
9practicable, to the provisions of the Municipal Retailers
10Occupation Tax Act, including without limitation, conformity
11to penalties with respect to the tax imposed and as to the
12powers of the State Department of Revenue to promulgate and
13enforce rules and regulations relating to the administration
14and enforcement of the provisions of the tax imposed, except
15that reference in the Act to any municipality shall refer to
16the Authority and the tax shall be imposed only with regard to
17receipts from sales of motor fuel in the metropolitan region,
18at rates as limited by this Section.
19    (c) In connection with the tax imposed under paragraph (b)
20of this Section, the Board may impose a tax upon the privilege
21of using in the metropolitan region motor fuel for the
22operation of a motor vehicle upon public highways, the tax to
23be at a rate not in excess of the rate of tax imposed under
24paragraph (b) of this Section. The Board may provide for
25details of the tax.
26    (d) The Board may impose a motor vehicle parking tax upon

 

 

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1the privilege of parking motor vehicles at off-street parking
2facilities in the metropolitan region at which a fee is
3charged, and may provide for reasonable classifications in and
4exemptions to the tax, for administration and enforcement
5thereof and for civil penalties and refunds thereunder and may
6provide criminal penalties thereunder, the maximum penalties
7not to exceed the maximum criminal penalties provided in the
8Retailers' Occupation Tax Act. The Authority may collect and
9enforce the tax itself or by contract with any unit of local
10government. The State Department of Revenue shall have no
11responsibility for the collection and enforcement unless the
12Department agrees with the Authority to undertake the
13collection and enforcement. As used in this paragraph, the
14term "parking facility" means a parking area or structure
15having parking spaces for more than 2 vehicles at which motor
16vehicles are permitted to park in return for an hourly, daily,
17or other periodic fee, whether publicly or privately owned,
18but does not include parking spaces on a public street, the use
19of which is regulated by parking meters.
20    (e) The Board may impose a Regional Transportation
21Authority Retailers' Occupation Tax upon all persons engaged
22in the business of selling tangible personal property at
23retail in the metropolitan region. In Cook County, the tax
24rate shall be 1.25% of the gross receipts from sales of
25tangible personal property taxed at the 1% rate under the
26Retailers' Occupation Tax Act (or at the 0% rate imposed under

 

 

10200HB1539sam001- 512 -LRB102 03555 HLH 39048 a

1this amendatory Act of the 102nd General Assembly), and 1% of
2the gross receipts from other taxable sales made in the course
3of that business. In DuPage, Kane, Lake, McHenry, and Will
4counties, the tax rate shall be 0.75% of the gross receipts
5from all taxable sales made in the course of that business. The
6rate of tax imposed in DuPage, Kane, Lake, McHenry, and Will
7counties under this Section on sales of aviation fuel on or
8after December 1, 2019 shall, however, be 0.25% unless the
9Regional Transportation Authority in DuPage, Kane, Lake,
10McHenry, and Will counties has an "airport-related purpose"
11and the additional 0.50% of the 0.75% tax on aviation fuel is
12expended for airport-related purposes. If there is no
13airport-related purpose to which aviation fuel tax revenue is
14dedicated, then aviation fuel is excluded from the additional
150.50% of the 0.75% tax. The tax imposed under this Section and
16all civil penalties that may be assessed as an incident
17thereof shall be collected and enforced by the State
18Department of Revenue. The Department shall have full power to
19administer and enforce this Section; to collect all taxes and
20penalties so collected in the manner hereinafter provided; and
21to determine all rights to credit memoranda arising on account
22of the erroneous payment of tax or penalty hereunder. In the
23administration of, and compliance with this Section, the
24Department and persons who are subject to this Section shall
25have the same rights, remedies, privileges, immunities,
26powers, and duties, and be subject to the same conditions,

 

 

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1restrictions, limitations, penalties, exclusions, exemptions,
2and definitions of terms, and employ the same modes of
3procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
41e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
5therein other than the State rate of tax), 2c, 3 (except as to
6the disposition of taxes and penalties collected, and except
7that the retailer's discount is not allowed for taxes paid on
8aviation fuel that are subject to the revenue use requirements
9of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
105d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
1110, 11, 12, and 13 of the Retailers' Occupation Tax Act and
12Section 3-7 of the Uniform Penalty and Interest Act, as fully
13as if those provisions were set forth herein.
14    The Board and DuPage, Kane, Lake, McHenry, and Will
15counties must comply with the certification requirements for
16airport-related purposes under Section 2-22 of the Retailers'
17Occupation Tax Act. For purposes of this Section,
18"airport-related purposes" has the meaning ascribed in Section
196z-20.2 of the State Finance Act. This exclusion for aviation
20fuel only applies for so long as the revenue use requirements
21of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
22Authority.
23    Persons subject to any tax imposed under the authority
24granted in this Section may reimburse themselves for their
25seller's tax liability hereunder by separately stating the tax
26as an additional charge, which charge may be stated in

 

 

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1combination in a single amount with State taxes that sellers
2are required to collect under the Use Tax Act, under any
3bracket schedules the Department may prescribe.
4    Whenever the Department determines that a refund should be
5made under this Section to a claimant instead of issuing a
6credit memorandum, the Department shall notify the State
7Comptroller, who shall cause the warrant to be drawn for the
8amount specified, and to the person named, in the notification
9from the Department. The refund shall be paid by the State
10Treasurer out of the Regional Transportation Authority tax
11fund established under paragraph (n) of this Section or the
12Local Government Aviation Trust Fund, as appropriate.
13    If a tax is imposed under this subsection (e), a tax shall
14also be imposed under subsections (f) and (g) of this Section.
15    For the purpose of determining whether a tax authorized
16under this Section is applicable, a retail sale by a producer
17of coal or other mineral mined in Illinois, is a sale at retail
18at the place where the coal or other mineral mined in Illinois
19is extracted from the earth. This paragraph does not apply to
20coal or other mineral when it is delivered or shipped by the
21seller to the purchaser at a point outside Illinois so that the
22sale is exempt under the Federal Constitution as a sale in
23interstate or foreign commerce.
24    No tax shall be imposed or collected under this subsection
25on the sale of a motor vehicle in this State to a resident of
26another state if that motor vehicle will not be titled in this

 

 

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1State.
2    Nothing in this Section shall be construed to authorize
3the Regional Transportation Authority to impose a tax upon the
4privilege of engaging in any business that under the
5Constitution of the United States may not be made the subject
6of taxation by this State.
7    (f) If a tax has been imposed under paragraph (e), a
8Regional Transportation Authority Service Occupation Tax shall
9also be imposed upon all persons engaged, in the metropolitan
10region in the business of making sales of service, who as an
11incident to making the sales of service, transfer tangible
12personal property within the metropolitan region, either in
13the form of tangible personal property or in the form of real
14estate as an incident to a sale of service. In Cook County, the
15tax rate shall be: (1) 1.25% of the serviceman's cost price of
16food prepared for immediate consumption and transferred
17incident to a sale of service subject to the service
18occupation tax by an entity licensed under the Hospital
19Licensing Act, the Nursing Home Care Act, the Specialized
20Mental Health Rehabilitation Act of 2013, the ID/DD Community
21Care Act, or the MC/DD Act that is located in the metropolitan
22region; (2) 1.25% of the selling price of tangible personal
23property taxed at the 1% rate under the Service Occupation Tax
24Act (or at the 0% rate imposed under this amendatory Act of the
25102nd General Assembly); and (3) 1% of the selling price from
26other taxable sales of tangible personal property transferred.

 

 

10200HB1539sam001- 516 -LRB102 03555 HLH 39048 a

1In DuPage, Kane, Lake, McHenry, and Will counties, the rate
2shall be 0.75% of the selling price of all tangible personal
3property transferred. The rate of tax imposed in DuPage, Kane,
4Lake, McHenry, and Will counties under this Section on sales
5of aviation fuel on or after December 1, 2019 shall, however,
6be 0.25% unless the Regional Transportation Authority in
7DuPage, Kane, Lake, McHenry, and Will counties has an
8"airport-related purpose" and the additional 0.50% of the
90.75% tax on aviation fuel is expended for airport-related
10purposes. If there is no airport-related purpose to which
11aviation fuel tax revenue is dedicated, then aviation fuel is
12excluded from the additional 0.5% of the 0.75% tax.
13    The Board and DuPage, Kane, Lake, McHenry, and Will
14counties must comply with the certification requirements for
15airport-related purposes under Section 2-22 of the Retailers'
16Occupation Tax Act. For purposes of this Section,
17"airport-related purposes" has the meaning ascribed in Section
186z-20.2 of the State Finance Act. This exclusion for aviation
19fuel only applies for so long as the revenue use requirements
20of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
21Authority.
22    The tax imposed under this paragraph and all civil
23penalties that may be assessed as an incident thereof shall be
24collected and enforced by the State Department of Revenue. The
25Department shall have full power to administer and enforce
26this paragraph; to collect all taxes and penalties due

 

 

10200HB1539sam001- 517 -LRB102 03555 HLH 39048 a

1hereunder; to dispose of taxes and penalties collected in the
2manner hereinafter provided; and to determine all rights to
3credit memoranda arising on account of the erroneous payment
4of tax or penalty hereunder. In the administration of and
5compliance with this paragraph, the Department and persons who
6are subject to this paragraph shall have the same rights,
7remedies, privileges, immunities, powers, and duties, and be
8subject to the same conditions, restrictions, limitations,
9penalties, exclusions, exemptions, and definitions of terms,
10and employ the same modes of procedure, as are prescribed in
11Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
12provisions therein other than the State rate of tax), 4
13(except that the reference to the State shall be to the
14Authority), 5, 7, 8 (except that the jurisdiction to which the
15tax shall be a debt to the extent indicated in that Section 8
16shall be the Authority), 9 (except as to the disposition of
17taxes and penalties collected, and except that the returned
18merchandise credit for this tax may not be taken against any
19State tax, and except that the retailer's discount is not
20allowed for taxes paid on aviation fuel that are subject to the
21revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2247133), 10, 11, 12 (except the reference therein to Section 2b
23of the Retailers' Occupation Tax Act), 13 (except that any
24reference to the State shall mean the Authority), the first
25paragraph of Section 15, 16, 17, 18, 19, and 20 of the Service
26Occupation Tax Act and Section 3-7 of the Uniform Penalty and

 

 

10200HB1539sam001- 518 -LRB102 03555 HLH 39048 a

1Interest Act, as fully as if those provisions were set forth
2herein.
3    Persons subject to any tax imposed under the authority
4granted in this paragraph may reimburse themselves for their
5serviceman's tax liability hereunder by separately stating the
6tax as an additional charge, that charge may be stated in
7combination in a single amount with State tax that servicemen
8are authorized to collect under the Service Use Tax Act, under
9any bracket schedules the Department may prescribe.
10    Whenever the Department determines that a refund should be
11made under this paragraph to a claimant instead of issuing a
12credit memorandum, the Department shall notify the State
13Comptroller, who shall cause the warrant to be drawn for the
14amount specified, and to the person named in the notification
15from the Department. The refund shall be paid by the State
16Treasurer out of the Regional Transportation Authority tax
17fund established under paragraph (n) of this Section or the
18Local Government Aviation Trust Fund, as appropriate.
19    Nothing in this paragraph shall be construed to authorize
20the Authority to impose a tax upon the privilege of engaging in
21any business that under the Constitution of the United States
22may not be made the subject of taxation by the State.
23    (g) If a tax has been imposed under paragraph (e), a tax
24shall also be imposed upon the privilege of using in the
25metropolitan region, any item of tangible personal property
26that is purchased outside the metropolitan region at retail

 

 

10200HB1539sam001- 519 -LRB102 03555 HLH 39048 a

1from a retailer, and that is titled or registered with an
2agency of this State's government. In Cook County, the tax
3rate shall be 1% of the selling price of the tangible personal
4property, as "selling price" is defined in the Use Tax Act. In
5DuPage, Kane, Lake, McHenry, and Will counties, the tax rate
6shall be 0.75% of the selling price of the tangible personal
7property, as "selling price" is defined in the Use Tax Act. The
8tax shall be collected from persons whose Illinois address for
9titling or registration purposes is given as being in the
10metropolitan region. The tax shall be collected by the
11Department of Revenue for the Regional Transportation
12Authority. The tax must be paid to the State, or an exemption
13determination must be obtained from the Department of Revenue,
14before the title or certificate of registration for the
15property may be issued. The tax or proof of exemption may be
16transmitted to the Department by way of the State agency with
17which, or the State officer with whom, the tangible personal
18property must be titled or registered if the Department and
19the State agency or State officer determine that this
20procedure will expedite the processing of applications for
21title or registration.
22    The Department shall have full power to administer and
23enforce this paragraph; to collect all taxes, penalties, and
24interest due hereunder; to dispose of taxes, penalties, and
25interest collected in the manner hereinafter provided; and to
26determine all rights to credit memoranda or refunds arising on

 

 

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1account of the erroneous payment of tax, penalty, or interest
2hereunder. In the administration of and compliance with this
3paragraph, the Department and persons who are subject to this
4paragraph shall have the same rights, remedies, privileges,
5immunities, powers, and duties, and be subject to the same
6conditions, restrictions, limitations, penalties, exclusions,
7exemptions, and definitions of terms and employ the same modes
8of procedure, as are prescribed in Sections 2 (except the
9definition of "retailer maintaining a place of business in
10this State"), 3 through 3-80 (except provisions pertaining to
11the State rate of tax, and except provisions concerning
12collection or refunding of the tax by retailers), 4, 11, 12,
1312a, 14, 15, 19 (except the portions pertaining to claims by
14retailers and except the last paragraph concerning refunds),
1520, 21, and 22 of the Use Tax Act, and are not inconsistent
16with this paragraph, as fully as if those provisions were set
17forth herein.
18    Whenever the Department determines that a refund should be
19made under this paragraph to a claimant instead of issuing a
20credit memorandum, the Department shall notify the State
21Comptroller, who shall cause the order to be drawn for the
22amount specified, and to the person named in the notification
23from the Department. The refund shall be paid by the State
24Treasurer out of the Regional Transportation Authority tax
25fund established under paragraph (n) of this Section.
26    (h) The Authority may impose a replacement vehicle tax of

 

 

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1$50 on any passenger car as defined in Section 1-157 of the
2Illinois Vehicle Code purchased within the metropolitan region
3by or on behalf of an insurance company to replace a passenger
4car of an insured person in settlement of a total loss claim.
5The tax imposed may not become effective before the first day
6of the month following the passage of the ordinance imposing
7the tax and receipt of a certified copy of the ordinance by the
8Department of Revenue. The Department of Revenue shall collect
9the tax for the Authority in accordance with Sections 3-2002
10and 3-2003 of the Illinois Vehicle Code.
11    The Department shall immediately pay over to the State
12Treasurer, ex officio, as trustee, all taxes collected
13hereunder.
14    As soon as possible after the first day of each month,
15beginning January 1, 2011, upon certification of the
16Department of Revenue, the Comptroller shall order
17transferred, and the Treasurer shall transfer, to the STAR
18Bonds Revenue Fund the local sales tax increment, as defined
19in the Innovation Development and Economy Act, collected under
20this Section during the second preceding calendar month for
21sales within a STAR bond district.
22    After the monthly transfer to the STAR Bonds Revenue Fund,
23on or before the 25th day of each calendar month, the
24Department shall prepare and certify to the Comptroller the
25disbursement of stated sums of money to the Authority. The
26amount to be paid to the Authority shall be the amount

 

 

10200HB1539sam001- 522 -LRB102 03555 HLH 39048 a

1collected hereunder during the second preceding calendar month
2by the Department, less any amount determined by the
3Department to be necessary for the payment of refunds, and
4less any amounts that are transferred to the STAR Bonds
5Revenue Fund. Within 10 days after receipt by the Comptroller
6of the disbursement certification to the Authority provided
7for in this Section to be given to the Comptroller by the
8Department, the Comptroller shall cause the orders to be drawn
9for that amount in accordance with the directions contained in
10the certification.
11    (i) The Board may not impose any other taxes except as it
12may from time to time be authorized by law to impose.
13    (j) A certificate of registration issued by the State
14Department of Revenue to a retailer under the Retailers'
15Occupation Tax Act or under the Service Occupation Tax Act
16shall permit the registrant to engage in a business that is
17taxed under the tax imposed under paragraphs (b), (e), (f) or
18(g) of this Section and no additional registration shall be
19required under the tax. A certificate issued under the Use Tax
20Act or the Service Use Tax Act shall be applicable with regard
21to any tax imposed under paragraph (c) of this Section.
22    (k) The provisions of any tax imposed under paragraph (c)
23of this Section shall conform as closely as may be practicable
24to the provisions of the Use Tax Act, including without
25limitation conformity as to penalties with respect to the tax
26imposed and as to the powers of the State Department of Revenue

 

 

10200HB1539sam001- 523 -LRB102 03555 HLH 39048 a

1to promulgate and enforce rules and regulations relating to
2the administration and enforcement of the provisions of the
3tax imposed. The taxes shall be imposed only on use within the
4metropolitan region and at rates as provided in the paragraph.
5    (l) The Board in imposing any tax as provided in
6paragraphs (b) and (c) of this Section, shall, after seeking
7the advice of the State Department of Revenue, provide means
8for retailers, users or purchasers of motor fuel for purposes
9other than those with regard to which the taxes may be imposed
10as provided in those paragraphs to receive refunds of taxes
11improperly paid, which provisions may be at variance with the
12refund provisions as applicable under the Municipal Retailers
13Occupation Tax Act. The State Department of Revenue may
14provide for certificates of registration for users or
15purchasers of motor fuel for purposes other than those with
16regard to which taxes may be imposed as provided in paragraphs
17(b) and (c) of this Section to facilitate the reporting and
18nontaxability of the exempt sales or uses.
19    (m) Any ordinance imposing or discontinuing any tax under
20this Section shall be adopted and a certified copy thereof
21filed with the Department on or before June 1, whereupon the
22Department of Revenue shall proceed to administer and enforce
23this Section on behalf of the Regional Transportation
24Authority as of September 1 next following such adoption and
25filing. Beginning January 1, 1992, an ordinance or resolution
26imposing or discontinuing the tax hereunder shall be adopted

 

 

10200HB1539sam001- 524 -LRB102 03555 HLH 39048 a

1and a certified copy thereof filed with the Department on or
2before the first day of July, whereupon the Department shall
3proceed to administer and enforce this Section as of the first
4day of October next following such adoption and filing.
5Beginning January 1, 1993, an ordinance or resolution
6imposing, increasing, decreasing, or discontinuing the tax
7hereunder shall be adopted and a certified copy thereof filed
8with the Department, whereupon the Department shall proceed to
9administer and enforce this Section as of the first day of the
10first month to occur not less than 60 days following such
11adoption and filing. Any ordinance or resolution of the
12Authority imposing a tax under this Section and in effect on
13August 1, 2007 shall remain in full force and effect and shall
14be administered by the Department of Revenue under the terms
15and conditions and rates of tax established by such ordinance
16or resolution until the Department begins administering and
17enforcing an increased tax under this Section as authorized by
18Public Act 95-708. The tax rates authorized by Public Act
1995-708 are effective only if imposed by ordinance of the
20Authority.
21    (n) Except as otherwise provided in this subsection (n),
22the State Department of Revenue shall, upon collecting any
23taxes as provided in this Section, pay the taxes over to the
24State Treasurer as trustee for the Authority. The taxes shall
25be held in a trust fund outside the State Treasury. If an
26airport-related purpose has been certified, taxes and

 

 

10200HB1539sam001- 525 -LRB102 03555 HLH 39048 a

1penalties collected in DuPage, Kane, Lake, McHenry and Will
2counties on aviation fuel sold on or after December 1, 2019
3from the 0.50% of the 0.75% rate shall be immediately paid over
4by the Department to the State Treasurer, ex officio, as
5trustee, for deposit into the Local Government Aviation Trust
6Fund. The Department shall only pay moneys into the Local
7Government Aviation Trust Fund under this Act for so long as
8the revenue use requirements of 49 U.S.C. 47107(b) and 49
9U.S.C. 47133 are binding on the Authority. On or before the
1025th day of each calendar month, the State Department of
11Revenue shall prepare and certify to the Comptroller of the
12State of Illinois and to the Authority (i) the amount of taxes
13collected in each county other than Cook County in the
14metropolitan region, (not including, if an airport-related
15purpose has been certified, the taxes and penalties collected
16from the 0.50% of the 0.75% rate on aviation fuel sold on or
17after December 1, 2019 that are deposited into the Local
18Government Aviation Trust Fund) (ii) the amount of taxes
19collected within the City of Chicago, and (iii) the amount
20collected in that portion of Cook County outside of Chicago,
21each amount less the amount necessary for the payment of
22refunds to taxpayers located in those areas described in items
23(i), (ii), and (iii), and less 1.5% of the remainder, which
24shall be transferred from the trust fund into the Tax
25Compliance and Administration Fund. The Department, at the
26time of each monthly disbursement to the Authority, shall

 

 

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1prepare and certify to the State Comptroller the amount to be
2transferred into the Tax Compliance and Administration Fund
3under this subsection. Within 10 days after receipt by the
4Comptroller of the certification of the amounts, the
5Comptroller shall cause an order to be drawn for the transfer
6of the amount certified into the Tax Compliance and
7Administration Fund and the payment of two-thirds of the
8amounts certified in item (i) of this subsection to the
9Authority and one-third of the amounts certified in item (i)
10of this subsection to the respective counties other than Cook
11County and the amount certified in items (ii) and (iii) of this
12subsection to the Authority.
13    In addition to the disbursement required by the preceding
14paragraph, an allocation shall be made in July 1991 and each
15year thereafter to the Regional Transportation Authority. The
16allocation shall be made in an amount equal to the average
17monthly distribution during the preceding calendar year
18(excluding the 2 months of lowest receipts) and the allocation
19shall include the amount of average monthly distribution from
20the Regional Transportation Authority Occupation and Use Tax
21Replacement Fund. The distribution made in July 1992 and each
22year thereafter under this paragraph and the preceding
23paragraph shall be reduced by the amount allocated and
24disbursed under this paragraph in the preceding calendar year.
25The Department of Revenue shall prepare and certify to the
26Comptroller for disbursement the allocations made in

 

 

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1accordance with this paragraph.
2    (o) Failure to adopt a budget ordinance or otherwise to
3comply with Section 4.01 of this Act or to adopt a Five-year
4Capital Program or otherwise to comply with paragraph (b) of
5Section 2.01 of this Act shall not affect the validity of any
6tax imposed by the Authority otherwise in conformity with law.
7    (p) At no time shall a public transportation tax or motor
8vehicle parking tax authorized under paragraphs (b), (c), and
9(d) of this Section be in effect at the same time as any
10retailers' occupation, use or service occupation tax
11authorized under paragraphs (e), (f), and (g) of this Section
12is in effect.
13    Any taxes imposed under the authority provided in
14paragraphs (b), (c), and (d) shall remain in effect only until
15the time as any tax authorized by paragraph (e), (f), or (g) of
16this Section are imposed and becomes effective. Once any tax
17authorized by paragraph (e), (f), or (g) is imposed the Board
18may not reimpose taxes as authorized in paragraphs (b), (c),
19and (d) of the Section unless any tax authorized by paragraph
20(e), (f), or (g) of this Section becomes ineffective by means
21other than an ordinance of the Board.
22    (q) Any existing rights, remedies and obligations
23(including enforcement by the Regional Transportation
24Authority) arising under any tax imposed under paragraph (b),
25(c), or (d) of this Section shall not be affected by the
26imposition of a tax under paragraph (e), (f), or (g) of this

 

 

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1Section.
2(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
3100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
47-12-19; 101-604, eff. 12-13-19.)
 
5
ARTICLE 65. SCHOOL SUPPLY HOLIDAY

 
6    Section 65-5. The Use Tax Act is amended by changing
7Sections 3-6, 3-10 and 9 as follows:
 
8    (35 ILCS 105/3-6)
9    Sec. 3-6. Sales tax holiday items.
10    (a) Any The tangible personal property described in this
11subsection is a sales tax holiday item and qualifies for the
121.25% reduced rate of tax for the period set forth in Section
133-10 of this Act (hereinafter referred to as the Sales Tax
14Holiday Period). The reduced rate on these items shall be
15administered under the provisions of subsection (b) of this
16Section. The following items are subject to the reduced rate:
17        (1) Clothing items that each have a retail selling
18    price of less than $125 $100.
19        "Clothing" means, unless otherwise specified in this
20    Section, all human wearing apparel suitable for general
21    use. "Clothing" does not include clothing accessories,
22    protective equipment, or sport or recreational equipment.
23    "Clothing" includes, but is not limited to: household and

 

 

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1    shop aprons; athletic supporters; bathing suits and caps;
2    belts and suspenders; boots; coats and jackets; ear muffs;
3    footlets; gloves and mittens for general use; hats and
4    caps; hosiery; insoles for shoes; lab coats; neckties;
5    overshoes; pantyhose; rainwear; rubber pants; sandals;
6    scarves; shoes and shoelaces; slippers; sneakers; socks
7    and stockings; steel-toed shoes; underwear; and school
8    uniforms.
9        "Clothing accessories" means, but is not limited to:
10    briefcases; cosmetics; hair notions, including, but not
11    limited to barrettes, hair bows, and hair nets; handbags;
12    handkerchiefs; jewelry; non-prescription sunglasses;
13    umbrellas; wallets; watches; and wigs and hair pieces.
14        "Protective equipment" means, but is not limited to:
15    breathing masks; clean room apparel and equipment; ear and
16    hearing protectors; face shields; hard hats; helmets;
17    paint or dust respirators; protective gloves; safety
18    glasses and goggles; safety belts; tool belts; and
19    welder's gloves and masks.
20        "Sport or recreational equipment" means, but is not
21    limited to: ballet and tap shoes; cleated or spiked
22    athletic shoes; gloves, including, but not limited to,
23    baseball, bowling, boxing, hockey, and golf gloves;
24    goggles; hand and elbow guards; life preservers and vests;
25    mouth guards; roller and ice skates; shin guards; shoulder
26    pads; ski boots; waders; and wetsuits and fins.

 

 

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1        (2) School supplies. "School supplies" means, unless
2    otherwise specified in this Section, items used by a
3    student in a course of study. The purchase of school
4    supplies for use by persons other than students for use in
5    a course of study are not eligible for the reduced rate of
6    tax. "School supplies" do not include school art supplies;
7    school instructional materials; cameras; film and memory
8    cards; videocameras, tapes, and videotapes; computers;
9    cell phones; Personal Digital Assistants (PDAs); handheld
10    electronic schedulers; and school computer supplies.
11        "School supplies" includes, but is not limited to:
12    binders; book bags; calculators; cellophane tape;
13    blackboard chalk; compasses; composition books; crayons;
14    erasers; expandable, pocket, plastic, and manila folders;
15    glue, paste, and paste sticks; highlighters; index cards;
16    index card boxes; legal pads; lunch boxes; markers;
17    notebooks; paper, including loose leaf ruled notebook
18    paper, copy paper, graph paper, tracing paper, manila
19    paper, colored paper, poster board, and construction
20    paper; pencils; pencil leads; pens; ink and ink refills
21    for pens; pencil boxes and other school supply boxes;
22    pencil sharpeners; protractors; rulers; scissors; and
23    writing tablets.
24        "School art supply" means an item commonly used by a
25    student in a course of study for artwork and includes only
26    the following items: clay and glazes; acrylic, tempera,

 

 

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1    and oil paint; paintbrushes for artwork; sketch and
2    drawing pads; and watercolors.
3        "School instructional material" means written material
4    commonly used by a student in a course of study as a
5    reference and to learn the subject being taught and
6    includes only the following items: reference books;
7    reference maps and globes; textbooks; and workbooks.
8        "School computer supply" means an item commonly used
9    by a student in a course of study in which a computer is
10    used and applies only to the following items: flashdrives
11    and other computer data storage devices; data storage
12    media, such as diskettes and compact disks; boxes and
13    cases for disk storage; external ports or drives; computer
14    cases; computer cables; computer printers; and printer
15    cartridges, toner, and ink.
16    (b) Administration. Notwithstanding any other provision of
17this Act, the reduced rate of tax under Section 3-10 of this
18Act for clothing and school supplies shall be administered by
19the Department under the provisions of this subsection (b).
20        (1) Bundled sales. Items that qualify for the reduced
21    rate of tax that are bundled together with items that do
22    not qualify for the reduced rate of tax and that are sold
23    for one itemized price will be subject to the reduced rate
24    of tax only if the value of the items that qualify for the
25    reduced rate of tax exceeds the value of the items that do
26    not qualify for the reduced rate of tax.

 

 

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1        (2) Coupons and discounts. An unreimbursed discount by
2    the seller reduces the sales price of the property so that
3    the discounted sales price determines whether the sales
4    price is within a sales tax holiday price threshold. A
5    coupon or other reduction in the sales price is treated as
6    a discount if the seller is not reimbursed for the coupon
7    or reduction amount by a third party.
8        (3) Splitting of items normally sold together.
9    Articles that are normally sold as a single unit must
10    continue to be sold in that manner. Such articles cannot
11    be priced separately and sold as individual items in order
12    to obtain the reduced rate of tax. For example, a pair of
13    shoes cannot have each shoe sold separately so that the
14    sales price of each shoe is within a sales tax holiday
15    price threshold.
16        (4) Rain checks. A rain check is a procedure that
17    allows a customer to purchase an item at a certain price at
18    a later time because the particular item was out of stock.
19    Eligible property that customers purchase during the Sales
20    Tax Holiday Period with the use of a rain check will
21    qualify for the reduced rate of tax regardless of when the
22    rain check was issued. Issuance of a rain check during the
23    Sales Tax Holiday Period will not qualify eligible
24    property for the reduced rate of tax if the property is
25    actually purchased after the Sales Tax Holiday Period.
26        (5) Exchanges. The procedure for an exchange in

 

 

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1    regards to a sales tax holiday is as follows:
2            (A) If a customer purchases an item of eligible
3        property during the Sales Tax Holiday Period, but
4        later exchanges the item for a similar eligible item,
5        even if a different size, different color, or other
6        feature, no additional tax is due even if the exchange
7        is made after the Sales Tax Holiday Period.
8            (B) If a customer purchases an item of eligible
9        property during the Sales Tax Holiday Period, but
10        after the Sales Tax Holiday Period has ended, the
11        customer returns the item and receives credit on the
12        purchase of a different item, the 6.25% general
13        merchandise sales tax rate is due on the sale of the
14        newly purchased item.
15            (C) If a customer purchases an item of eligible
16        property before the Sales Tax Holiday Period, but
17        during the Sales Tax Holiday Period the customer
18        returns the item and receives credit on the purchase
19        of a different item of eligible property, the reduced
20        rate of tax is due on the sale of the new item if the
21        new item is purchased during the Sales Tax Holiday
22        Period.
23        (6) (Blank). Delivery charges. Delivery charges,
24    including shipping, handling and service charges, are part
25    of the sales price of eligible property.
26        (7) Order date and back orders. For the purpose of a

 

 

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1    sales tax holiday, eligible property qualifies for the
2    reduced rate of tax if: (i) the item is both delivered to
3    and paid for by the customer during the Sales Tax Holiday
4    Period or (ii) the customer orders and pays for the item
5    and the seller accepts the order during the Sales Tax
6    Holiday Period for immediate shipment, even if delivery is
7    made after the Sales Tax Holiday Period. The seller
8    accepts an order when the seller has taken action to fill
9    the order for immediate shipment. Actions to fill an order
10    include placement of an "in date" stamp on an order or
11    assignment of an "order number" to an order within the
12    Sales Tax Holiday Period. An order is for immediate
13    shipment when the customer does not request delayed
14    shipment. An order is for immediate shipment
15    notwithstanding that the shipment may be delayed because
16    of a backlog of orders or because stock is currently
17    unavailable to, or on back order by, the seller.
18        (8) Returns. For a 60-day period immediately after the
19    Sales Tax Holiday Period, if a customer returns an item
20    that would qualify for the reduced rate of tax, credit for
21    or refund of sales tax shall be given only at the reduced
22    rate unless the customer provides a receipt or invoice
23    that shows tax was paid at the 6.25% general merchandise
24    rate, or the seller has sufficient documentation to show
25    that tax was paid at the 6.25% general merchandise rate on
26    the specific item. This 60-day period is set solely for

 

 

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1    the purpose of designating a time period during which the
2    customer must provide documentation that shows that the
3    appropriate sales tax rate was paid on returned
4    merchandise. The 60-day period is not intended to change a
5    seller's policy on the time period during which the seller
6    will accept returns.
7    (c) The Department may implement the provisions of this
8Section through the use of emergency rules, along with
9permanent rules filed concurrently with such emergency rules,
10in accordance with the provisions of Section 5-45 of the
11Illinois Administrative Procedure Act. For purposes of the
12Illinois Administrative Procedure Act, the adoption of rules
13to implement the provisions of this Section shall be deemed an
14emergency and necessary for the public interest, safety, and
15welfare.
16(Source: P.A. 96-1012, eff. 7-7-10.)
 
17    (35 ILCS 105/3-10)
18    Sec. 3-10. Rate of tax. Unless otherwise provided in this
19Section, the tax imposed by this Act is at the rate of 6.25% of
20either the selling price or the fair market value, if any, of
21the tangible personal property. In all cases where property
22functionally used or consumed is the same as the property that
23was purchased at retail, then the tax is imposed on the selling
24price of the property. In all cases where property
25functionally used or consumed is a by-product or waste product

 

 

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1that has been refined, manufactured, or produced from property
2purchased at retail, then the tax is imposed on the lower of
3the fair market value, if any, of the specific property so used
4in this State or on the selling price of the property purchased
5at retail. For purposes of this Section "fair market value"
6means the price at which property would change hands between a
7willing buyer and a willing seller, neither being under any
8compulsion to buy or sell and both having reasonable knowledge
9of the relevant facts. The fair market value shall be
10established by Illinois sales by the taxpayer of the same
11property as that functionally used or consumed, or if there
12are no such sales by the taxpayer, then comparable sales or
13purchases of property of like kind and character in Illinois.
14    Beginning on July 1, 2000 and through December 31, 2000,
15with respect to motor fuel, as defined in Section 1.1 of the
16Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
17the Use Tax Act, the tax is imposed at the rate of 1.25%.
18    Beginning on August 6, 2010 through August 15, 2010, and
19beginning again on August 5, 2022 through August 14, 2022,
20with respect to sales tax holiday items as defined in Section
213-6 of this Act, the tax is imposed at the rate of 1.25%.
22    With respect to gasohol, the tax imposed by this Act
23applies to (i) 70% of the proceeds of sales made on or after
24January 1, 1990, and before July 1, 2003, (ii) 80% of the
25proceeds of sales made on or after July 1, 2003 and on or
26before July 1, 2017, and (iii) 100% of the proceeds of sales

 

 

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1made thereafter. If, at any time, however, the tax under this
2Act on sales of gasohol is imposed at the rate of 1.25%, then
3the tax imposed by this Act applies to 100% of the proceeds of
4sales of gasohol made during that time.
5    With respect to majority blended ethanol fuel, the tax
6imposed by this Act does not apply to the proceeds of sales
7made on or after July 1, 2003 and on or before December 31,
82023 but applies to 100% of the proceeds of sales made
9thereafter.
10    With respect to biodiesel blends with no less than 1% and
11no more than 10% biodiesel, the tax imposed by this Act applies
12to (i) 80% of the proceeds of sales made on or after July 1,
132003 and on or before December 31, 2018 and (ii) 100% of the
14proceeds of sales made thereafter. If, at any time, however,
15the tax under this Act on sales of biodiesel blends with no
16less than 1% and no more than 10% biodiesel is imposed at the
17rate of 1.25%, then the tax imposed by this Act applies to 100%
18of the proceeds of sales of biodiesel blends with no less than
191% and no more than 10% biodiesel made during that time.
20    With respect to 100% biodiesel and biodiesel blends with
21more than 10% but no more than 99% biodiesel, the tax imposed
22by this Act does not apply to the proceeds of sales made on or
23after July 1, 2003 and on or before December 31, 2023 but
24applies to 100% of the proceeds of sales made thereafter.
25    With respect to food for human consumption that is to be
26consumed off the premises where it is sold (other than

 

 

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

 

 

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

 

 

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

 

 

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1retailer is acquired outside Illinois and used outside
2Illinois before being brought to Illinois for use here and is
3taxable under this Act, the "selling price" on which the tax is
4computed shall be reduced by an amount that represents a
5reasonable allowance for depreciation for the period of prior
6out-of-state use.
7(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
8102-4, eff. 4-27-21.)
 
9    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
10    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
11and trailers that are required to be registered with an agency
12of this State, each retailer required or authorized to collect
13the tax imposed by this Act shall pay to the Department the
14amount of such tax (except as otherwise provided) at the time
15when he is required to file his return for the period during
16which such tax was collected, less a discount of 2.1% prior to
17January 1, 1990, and 1.75% on and after January 1, 1990, or $5
18per calendar year, whichever is greater, which is allowed to
19reimburse the retailer for expenses incurred in collecting the
20tax, keeping records, preparing and filing returns, remitting
21the tax and supplying data to the Department on request. When
22determining the discount allowed under this Section, retailers
23shall include the amount of tax that would have been due at the
246.25% rate but for the 1.25% rate imposed on sales tax holiday
25items under this amendatory Act of the 102nd General Assembly.

 

 

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1The discount under this Section is not allowed for the 1.25%
2portion of taxes paid on aviation fuel that is subject to the
3revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
447133. In the case of retailers who report and pay the tax on a
5transaction by transaction basis, as provided in this Section,
6such discount shall be taken with each such tax remittance
7instead of when such retailer files his periodic return. The
8discount allowed under this Section is allowed only for
9returns that are filed in the manner required by this Act. The
10Department may disallow the discount for retailers whose
11certificate of registration is revoked at the time the return
12is filed, but only if the Department's decision to revoke the
13certificate of registration has become final. A retailer need
14not remit that part of any tax collected by him to the extent
15that he is required to remit and does remit the tax imposed by
16the Retailers' Occupation Tax Act, with respect to the sale of
17the same property.
18    Where such tangible personal property is sold under a
19conditional sales contract, or under any other form of sale
20wherein the payment of the principal sum, or a part thereof, is
21extended beyond the close of the period for which the return is
22filed, the retailer, in collecting the tax (except as to motor
23vehicles, watercraft, aircraft, and trailers that are required
24to be registered with an agency of this State), may collect for
25each tax return period, only the tax applicable to that part of
26the selling price actually received during such tax return

 

 

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1period.
2    Except as provided in this Section, on or before the
3twentieth day of each calendar month, such retailer shall file
4a return for the preceding calendar month. Such return shall
5be filed on forms prescribed by the Department and shall
6furnish such information as the Department may reasonably
7require. On and after January 1, 2018, except for returns for
8motor vehicles, watercraft, aircraft, and trailers that are
9required to be registered with an agency of this State, with
10respect to retailers whose annual gross receipts average
11$20,000 or more, all returns required to be filed pursuant to
12this Act shall be filed electronically. Retailers who
13demonstrate that they do not have access to the Internet or
14demonstrate hardship in filing electronically may petition the
15Department to waive the electronic filing requirement.
16    The Department may require returns to be filed on a
17quarterly basis. If so required, a return for each calendar
18quarter shall be filed on or before the twentieth day of the
19calendar month following the end of such calendar quarter. The
20taxpayer shall also file a return with the Department for each
21of the first two months of each calendar quarter, on or before
22the twentieth day of the following calendar month, stating:
23        1. The name of the seller;
24        2. The address of the principal place of business from
25    which he engages in the business of selling tangible
26    personal property at retail in this State;

 

 

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

 

 

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1the return shall be considered valid and any amount shown to be
2due on the return shall be deemed assessed.
3    Notwithstanding any other provision of this Act to the
4contrary, retailers subject to tax on cannabis shall file all
5cannabis tax returns and shall make all cannabis tax payments
6by electronic means in the manner and form required by the
7Department.
8    Beginning October 1, 1993, a taxpayer who has an average
9monthly tax liability of $150,000 or more shall make all
10payments required by rules of the Department by electronic
11funds transfer. Beginning October 1, 1994, a taxpayer who has
12an average monthly tax liability of $100,000 or more shall
13make all payments required by rules of the Department by
14electronic funds transfer. Beginning October 1, 1995, a
15taxpayer who has an average monthly tax liability of $50,000
16or more shall make all payments required by rules of the
17Department by electronic funds transfer. Beginning October 1,
182000, a taxpayer who has an annual tax liability of $200,000 or
19more shall make all payments required by rules of the
20Department by electronic funds transfer. The term "annual tax
21liability" shall be the sum of the taxpayer's liabilities
22under this Act, and under all other State and local occupation
23and use tax laws administered by the Department, for the
24immediately preceding calendar year. The term "average monthly
25tax liability" means 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 divided by 12. Beginning
3on October 1, 2002, a taxpayer who has a tax liability in the
4amount set forth in subsection (b) of Section 2505-210 of the
5Department of Revenue Law shall make all payments required by
6rules of the Department by electronic funds transfer.
7    Before August 1 of each year beginning in 1993, the
8Department shall notify all taxpayers required to make
9payments by electronic funds transfer. All taxpayers required
10to make payments by electronic funds transfer shall make those
11payments for a minimum of one year beginning on October 1.
12    Any taxpayer not required to make payments by electronic
13funds transfer may make payments by electronic funds transfer
14with the permission of the Department.
15    All taxpayers required to make payment by electronic funds
16transfer and any taxpayers authorized to voluntarily make
17payments by electronic funds transfer shall make those
18payments in the manner authorized by the Department.
19    The Department shall adopt such rules as are necessary to
20effectuate a program of electronic funds transfer and the
21requirements of this Section.
22    Before October 1, 2000, if the taxpayer's average monthly
23tax liability to the Department under this Act, the Retailers'
24Occupation Tax Act, the Service Occupation Tax Act, the
25Service Use Tax Act was $10,000 or more during the preceding 4
26complete calendar quarters, he shall file a return with the

 

 

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1Department each month by the 20th day of the month next
2following the month during which such tax liability is
3incurred and shall make payments to the Department on or
4before the 7th, 15th, 22nd and last day of the month during
5which such liability is incurred. On and after October 1,
62000, if the taxpayer's average monthly tax liability to the
7Department under this Act, the Retailers' Occupation Tax Act,
8the Service Occupation Tax Act, and the Service Use Tax Act was
9$20,000 or more during the preceding 4 complete calendar
10quarters, he shall file a return with the Department each
11month by the 20th day of the month next following the month
12during which such tax liability is incurred and shall make
13payment to the Department on or before the 7th, 15th, 22nd and
14last day of the month during which such liability is incurred.
15If the month during which such tax liability is incurred began
16prior to January 1, 1985, each payment shall be in an amount
17equal to 1/4 of the taxpayer's actual liability for the month
18or an amount set by the Department not to exceed 1/4 of the
19average monthly liability of the taxpayer to the Department
20for the preceding 4 complete calendar quarters (excluding the
21month of highest liability and the month of lowest liability
22in such 4 quarter period). If the month during which such tax
23liability is incurred begins on or after January 1, 1985, and
24prior to January 1, 1987, each payment shall be in an amount
25equal to 22.5% of the taxpayer's actual liability for the
26month or 27.5% of the taxpayer's liability for the same

 

 

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1calendar month of the preceding year. If the month during
2which such tax liability is incurred begins on or after
3January 1, 1987, and prior to January 1, 1988, each payment
4shall be in an amount equal to 22.5% of the taxpayer's actual
5liability for the month or 26.25% of the taxpayer's liability
6for the same calendar month of the preceding year. If the month
7during which such tax liability is incurred begins on or after
8January 1, 1988, and prior to January 1, 1989, or begins on or
9after January 1, 1996, each payment shall be in an amount equal
10to 22.5% of the taxpayer's actual liability for the month or
1125% of the taxpayer's liability for the same calendar month of
12the preceding year. If the month during which such tax
13liability is incurred begins on or after January 1, 1989, and
14prior to January 1, 1996, each payment shall be in an amount
15equal to 22.5% of the taxpayer's actual liability for the
16month or 25% of the taxpayer's liability for the same calendar
17month of the preceding year or 100% of the taxpayer's actual
18liability for the quarter monthly reporting period. The amount
19of such quarter monthly payments shall be credited against the
20final tax liability of the taxpayer's return for that month.
21Before October 1, 2000, once applicable, the requirement of
22the making of quarter monthly payments to the Department shall
23continue until such taxpayer's average monthly liability to
24the Department during the preceding 4 complete calendar
25quarters (excluding the month of highest liability and the
26month of lowest liability) is less than $9,000, or until such

 

 

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1taxpayer's average monthly liability to the Department as
2computed for each calendar quarter of the 4 preceding complete
3calendar quarter period is less than $10,000. However, if a
4taxpayer can show the Department that a substantial change in
5the taxpayer's business has occurred which causes the taxpayer
6to anticipate that his average monthly tax liability for the
7reasonably foreseeable future will fall below the $10,000
8threshold stated above, then such taxpayer may petition the
9Department for change in such taxpayer's reporting status. On
10and after October 1, 2000, once applicable, the requirement of
11the making of quarter monthly payments to the Department shall
12continue until such taxpayer's average monthly liability to
13the Department during the preceding 4 complete calendar
14quarters (excluding the month of highest liability and the
15month of lowest liability) is less than $19,000 or until such
16taxpayer's average monthly liability to the Department as
17computed for each calendar quarter of the 4 preceding complete
18calendar quarter period is less than $20,000. However, if a
19taxpayer can show the Department that a substantial change in
20the taxpayer's business has occurred which causes the taxpayer
21to anticipate that his average monthly tax liability for the
22reasonably foreseeable future will fall below the $20,000
23threshold stated above, then such taxpayer may petition the
24Department for a change in such taxpayer's reporting status.
25The Department shall change such taxpayer's reporting status
26unless it finds that such change is seasonal in nature and not

 

 

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1likely to be long term. Quarter monthly payment status shall
2be determined under this paragraph as if the rate reduction to
31.25% in this amendatory Act of the 102nd General Assembly on
4sales tax holiday items had not occurred. For quarter monthly
5payments due on or after July 1, 2023 and through June 30,
62024, "25% of the taxpayer's liability for the same calendar
7month of the preceding year" shall be determined as if the rate
8reduction to 1.25% in this amendatory Act of the 102nd General
9Assembly on sales tax holiday items had not occurred. If any
10such quarter monthly payment is not paid at the time or in the
11amount required by this Section, then the taxpayer shall be
12liable for penalties and interest on the difference between
13the minimum amount due and the amount of such quarter monthly
14payment actually and timely paid, except insofar as the
15taxpayer has previously made payments for that month to the
16Department in excess of the minimum payments previously due as
17provided in this Section. The Department shall make reasonable
18rules and regulations to govern the quarter monthly payment
19amount and quarter monthly payment dates for taxpayers who
20file on other than a calendar monthly basis.
21    If any such payment provided for in this Section exceeds
22the taxpayer's liabilities under this Act, the Retailers'
23Occupation Tax Act, the Service Occupation Tax Act and the
24Service Use Tax Act, as shown by an original monthly return,
25the Department shall issue to the taxpayer a credit memorandum
26no later than 30 days after the date of payment, which

 

 

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1memorandum may be submitted by the taxpayer to the Department
2in payment of tax liability subsequently to be remitted by the
3taxpayer to the Department or be assigned by the taxpayer to a
4similar taxpayer under this Act, the Retailers' Occupation Tax
5Act, the Service Occupation Tax Act or the Service Use Tax Act,
6in accordance with reasonable rules and regulations to be
7prescribed by the Department, except that if such excess
8payment is shown on an original monthly return and is made
9after December 31, 1986, no credit memorandum shall be issued,
10unless requested by the taxpayer. If no such request is made,
11the taxpayer may credit such excess payment against tax
12liability subsequently to be remitted by the taxpayer to the
13Department under this Act, the Retailers' Occupation Tax Act,
14the Service Occupation Tax Act or the Service Use Tax Act, in
15accordance with reasonable rules and regulations prescribed by
16the Department. If the Department subsequently determines that
17all or any part of the credit taken was not actually due to the
18taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
19be reduced by 2.1% or 1.75% of the difference between the
20credit taken and that actually due, and the taxpayer shall be
21liable for penalties and interest on such difference.
22    If the retailer is otherwise required to file a monthly
23return and if the retailer's average monthly tax liability to
24the Department does not exceed $200, the Department may
25authorize his returns to be filed on a quarter annual basis,
26with the return for January, February, and March of a given

 

 

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

 

 

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1property shall file, with the Department, upon a form to be
2prescribed and supplied by the Department, a separate return
3for each such item of tangible personal property which the
4retailer sells, except that if, in the same transaction, (i) a
5retailer of aircraft, watercraft, motor vehicles or trailers
6transfers more than one aircraft, watercraft, motor vehicle or
7trailer to another aircraft, watercraft, motor vehicle or
8trailer retailer for the purpose of resale or (ii) a retailer
9of aircraft, watercraft, motor vehicles, or trailers transfers
10more than one aircraft, watercraft, motor vehicle, or trailer
11to a purchaser for use as a qualifying rolling stock as
12provided in Section 3-55 of this Act, then that seller may
13report the transfer of all the aircraft, watercraft, motor
14vehicles or trailers involved in that transaction to the
15Department on the same uniform invoice-transaction reporting
16return form. For purposes of this Section, "watercraft" means
17a Class 2, Class 3, or Class 4 watercraft as defined in Section
183-2 of the Boat Registration and Safety Act, a personal
19watercraft, or any boat equipped with an inboard motor.
20    In addition, with respect to motor vehicles, watercraft,
21aircraft, and trailers that are required to be registered with
22an agency of this State, every person who is engaged in the
23business of leasing or renting such items and who, in
24connection with such business, sells any such item to a
25retailer for the purpose of resale is, notwithstanding any
26other provision of this Section to the contrary, authorized to

 

 

10200HB1539sam001- 554 -LRB102 03555 HLH 39048 a

1meet the return-filing requirement of this Act by reporting
2the transfer of all the aircraft, watercraft, motor vehicles,
3or trailers transferred for resale during a month to the
4Department on the same uniform invoice-transaction reporting
5return form on or before the 20th of the month following the
6month in which the transfer takes place. Notwithstanding any
7other provision of this Act to the contrary, all returns filed
8under this paragraph must be filed by electronic means in the
9manner and form as required by the Department.
10    The transaction reporting return in the case of motor
11vehicles or trailers that are required to be registered with
12an agency of this State, shall be the same document as the
13Uniform Invoice referred to in Section 5-402 of the Illinois
14Vehicle Code and must show the name and address of the seller;
15the name and address of the purchaser; the amount of the
16selling price 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

 

 

10200HB1539sam001- 555 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 556 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 557 -LRB102 03555 HLH 39048 a

1Department shall adopt appropriate rules to carry out the
2mandate of this paragraph.
3    If the user who would otherwise pay tax to the retailer
4wants the transaction reporting return filed and the payment
5of tax or proof of exemption made to the Department before the
6retailer is willing to take these actions and such user has not
7paid the tax to the retailer, such user may certify to the fact
8of such delay by the retailer, and may (upon the Department
9being satisfied of the truth of such certification) transmit
10the information required by the transaction reporting return
11and the remittance for tax or proof of exemption directly to
12the Department and obtain his tax receipt or exemption
13determination, in which event the transaction reporting return
14and tax remittance (if a tax payment was required) shall be
15credited by the Department to the proper retailer's account
16with the Department, but without the 2.1% or 1.75% discount
17provided for in this Section being allowed. When the user pays
18the tax directly to the Department, he shall pay the tax in the
19same amount and in the same form in which it would be remitted
20if the tax had been remitted to the Department by the retailer.
21    Where a retailer collects the tax with respect to the
22selling price of tangible personal property which he sells and
23the purchaser thereafter returns such tangible personal
24property and the retailer refunds the selling price thereof to
25the purchaser, such retailer shall also refund, to the
26purchaser, the tax so collected from the purchaser. When

 

 

10200HB1539sam001- 558 -LRB102 03555 HLH 39048 a

1filing his return for the period in which he refunds such tax
2to the purchaser, the retailer may deduct the amount of the tax
3so refunded by him to the purchaser from any other use tax
4which such retailer may be required to pay or remit to the
5Department, as shown by such return, if the amount of the tax
6to be deducted was previously remitted to the Department by
7such retailer. If the retailer has not previously remitted the
8amount of such tax to the Department, he is entitled to no
9deduction under this Act upon refunding such tax to the
10purchaser.
11    Any retailer filing a return under this Section shall also
12include (for the purpose of paying tax thereon) the total tax
13covered by such return upon the selling price of tangible
14personal property purchased by him at retail from a retailer,
15but as to which the tax imposed by this Act was not collected
16from the retailer filing such return, and such retailer shall
17remit the amount of such tax to the Department when filing such
18return.
19    If experience indicates such action to be practicable, the
20Department may prescribe and furnish a combination or joint
21return which will enable retailers, who are required to file
22returns hereunder and also under the Retailers' Occupation Tax
23Act, to furnish all the return information required by both
24Acts on the one form.
25    Where the retailer has more than one business registered
26with the Department under separate registration under this

 

 

10200HB1539sam001- 559 -LRB102 03555 HLH 39048 a

1Act, such retailer may not file each return that is due as a
2single return covering all such registered businesses, but
3shall file separate returns for each such registered business.
4    Beginning January 1, 1990, each month the Department shall
5pay into the State and Local Sales Tax Reform Fund, a special
6fund in the State Treasury which is hereby created, the net
7revenue realized for the preceding month from the 1% tax
8imposed under this Act.
9    Beginning January 1, 1990, each month the Department shall
10pay into the County and Mass Transit District Fund 4% of the
11net revenue realized for the preceding month from the 6.25%
12general rate on the selling price of tangible personal
13property which is purchased outside Illinois at retail from a
14retailer and which is titled or registered by an agency of this
15State's government.
16    Beginning January 1, 1990, each month the Department shall
17pay into the State and Local Sales Tax Reform Fund, a special
18fund in the State Treasury, 20% of the net revenue realized for
19the preceding month from the 6.25% general rate on the selling
20price of tangible personal property, other than (i) tangible
21personal property which is purchased outside Illinois at
22retail from a retailer and which is titled or registered by an
23agency of this State's government and (ii) aviation fuel sold
24on or after December 1, 2019. This exception for aviation fuel
25only applies for so long as the revenue use requirements of 49
26U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

 

 

10200HB1539sam001- 560 -LRB102 03555 HLH 39048 a

1    For aviation fuel sold on or after December 1, 2019, each
2month the Department shall pay into the State Aviation Program
3Fund 20% of the net revenue realized for the preceding month
4from the 6.25% general rate on the selling price of aviation
5fuel, less an amount estimated by the Department to be
6required for refunds of the 20% portion of the tax on aviation
7fuel under this Act, which amount shall be deposited into the
8Aviation Fuel Sales Tax Refund Fund. The Department shall only
9pay moneys into the State Aviation Program Fund and the
10Aviation Fuels Sales Tax Refund Fund under this Act for so long
11as the revenue use requirements of 49 U.S.C. 47107(b) and 49
12U.S.C. 47133 are binding on the State.
13    Beginning August 1, 2000, each month the Department shall
14pay into the State and Local Sales Tax Reform Fund 100% of the
15net revenue realized for the preceding month from the 1.25%
16rate on the selling price of motor fuel and gasohol. If, in any
17month, the tax on sales tax holiday items, as defined in
18Section 3-6, is imposed at the rate of 1.25%, then Beginning
19September 1, 2010, each month the Department shall pay into
20the State and Local Sales Tax Reform Fund 100% of the net
21revenue realized for that the preceding month from the 1.25%
22rate on the selling price of sales tax holiday items into the
23State and Local Sales Tax Reform Fund.
24    Beginning January 1, 1990, each month the Department shall
25pay into the Local Government Tax Fund 16% of the net revenue
26realized for the preceding month from the 6.25% general rate

 

 

10200HB1539sam001- 561 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 562 -LRB102 03555 HLH 39048 a

1by the Illinois Environmental Protection Agency, but the total
2payment into the Underground Storage Tank Fund under this Act,
3the Service Use Tax Act, the Service Occupation Tax Act, and
4the Retailers' Occupation Tax Act shall not exceed $18,000,000
5in any State fiscal year. As used in this paragraph, the
6"average monthly deficit" shall be equal to the difference
7between the average monthly claims for payment by the fund and
8the average monthly revenues deposited into the fund,
9excluding payments made pursuant to this paragraph.
10    Beginning July 1, 2015, of the remainder of the moneys
11received by the Department under this Act, the Service Use Tax
12Act, the Service Occupation Tax Act, and the Retailers'
13Occupation Tax Act, each month the Department shall deposit
14$500,000 into the State Crime Laboratory Fund.
15    Of the remainder of the moneys received by the Department
16pursuant to this Act, (a) 1.75% thereof shall be paid into the
17Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
18and after July 1, 1989, 3.8% thereof shall be paid into the
19Build Illinois Fund; provided, however, that if in any fiscal
20year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
21may be, of the moneys received by the Department and required
22to be paid into the Build Illinois Fund pursuant to Section 3
23of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
24Act, Section 9 of the Service Use Tax Act, and Section 9 of the
25Service Occupation Tax Act, such Acts being hereinafter called
26the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case

 

 

10200HB1539sam001- 563 -LRB102 03555 HLH 39048 a

1may be, of moneys being hereinafter called the "Tax Act
2Amount", and (2) the amount transferred to the Build Illinois
3Fund from the State and Local Sales Tax Reform Fund shall be
4less than the Annual Specified Amount (as defined in Section 3
5of the Retailers' Occupation Tax Act), an amount equal to the
6difference shall be immediately paid into the Build Illinois
7Fund from other moneys received by the Department pursuant to
8the Tax Acts; and further provided, that if on the last
9business day of any month the sum of (1) the Tax Act Amount
10required to be deposited into the Build Illinois Bond Account
11in the Build Illinois Fund during such month and (2) the amount
12transferred during such month to the Build Illinois Fund from
13the State and Local Sales Tax Reform Fund shall have been less
14than 1/12 of the Annual Specified Amount, an amount equal to
15the difference shall be immediately paid into the Build
16Illinois Fund from other moneys received by the Department
17pursuant to the Tax Acts; and, further provided, that in no
18event shall the payments required under the preceding proviso
19result in aggregate payments into the Build Illinois Fund
20pursuant to this clause (b) for any fiscal year in excess of
21the greater of (i) the Tax Act Amount or (ii) the Annual
22Specified Amount for such fiscal year; and, further provided,
23that the amounts payable into the Build Illinois Fund under
24this clause (b) shall be payable only until such time as the
25aggregate amount on deposit under each trust indenture
26securing Bonds issued and outstanding pursuant to the Build

 

 

10200HB1539sam001- 564 -LRB102 03555 HLH 39048 a

1Illinois Bond Act is sufficient, taking into account any
2future investment income, to fully provide, in accordance with
3such indenture, for the defeasance of or the payment of the
4principal of, premium, if any, and interest on the Bonds
5secured by such indenture and on any Bonds expected to be
6issued thereafter and all fees and costs payable with respect
7thereto, all as certified by the Director of the Bureau of the
8Budget (now Governor's Office of Management and Budget). If on
9the last business day of any month in which Bonds are
10outstanding pursuant to the Build Illinois Bond Act, the
11aggregate of the moneys deposited in the Build Illinois Bond
12Account in the Build Illinois Fund in such month shall be less
13than the amount required to be transferred in such month from
14the Build Illinois Bond Account to the Build Illinois Bond
15Retirement and Interest Fund pursuant to Section 13 of the
16Build Illinois Bond Act, an amount equal to such deficiency
17shall be immediately paid from other moneys received by the
18Department pursuant to the Tax Acts to the Build Illinois
19Fund; provided, however, that any amounts paid to the Build
20Illinois Fund in any fiscal year pursuant to this sentence
21shall be deemed to constitute payments pursuant to clause (b)
22of the preceding sentence and shall reduce the amount
23otherwise payable for such fiscal year pursuant to clause (b)
24of the preceding sentence. The moneys received by the
25Department pursuant to this Act and required to be deposited
26into the Build Illinois Fund are subject to the pledge, claim

 

 

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1and charge set forth in Section 12 of the Build Illinois Bond
2Act.
3    Subject to payment of amounts into the Build Illinois Fund
4as provided in the preceding paragraph or in any amendment
5thereto hereafter enacted, the following specified monthly
6installment of the amount requested in the certificate of the
7Chairman of the Metropolitan Pier and Exposition Authority
8provided under Section 8.25f of the State Finance Act, but not
9in excess of the sums designated as "Total Deposit", shall be
10deposited in the aggregate from collections under Section 9 of
11the Use Tax Act, Section 9 of the Service Use Tax Act, Section
129 of the Service Occupation Tax Act, and Section 3 of the
13Retailers' Occupation Tax Act into the McCormick Place
14Expansion Project Fund in the specified fiscal years.
15Fiscal YearTotal Deposit
161993         $0
171994 53,000,000
181995 58,000,000
191996 61,000,000
201997 64,000,000
211998 68,000,000
221999 71,000,000
232000 75,000,000
242001 80,000,000
252002 93,000,000
262003 99,000,000

 

 

10200HB1539sam001- 566 -LRB102 03555 HLH 39048 a

12004103,000,000
22005108,000,000
32006113,000,000
42007119,000,000
52008126,000,000
62009132,000,000
72010139,000,000
82011146,000,000
92012153,000,000
102013161,000,000
112014170,000,000
122015179,000,000
132016189,000,000
142017199,000,000
152018210,000,000
162019221,000,000
172020233,000,000
182021300,000,000
192022300,000,000
202023300,000,000
212024 300,000,000
222025 300,000,000
232026 300,000,000
242027 375,000,000
252028 375,000,000
262029 375,000,000

 

 

10200HB1539sam001- 567 -LRB102 03555 HLH 39048 a

12030 375,000,000
22031 375,000,000
32032 375,000,000
42033 375,000,000
52034375,000,000
62035375,000,000
72036450,000,000
8and
9each fiscal year
10thereafter that bonds
11are outstanding under
12Section 13.2 of the
13Metropolitan Pier and
14Exposition Authority Act,
15but not after fiscal year 2060.
16    Beginning July 20, 1993 and in each month of each fiscal
17year thereafter, one-eighth of the amount requested in the
18certificate of the Chairman of the Metropolitan Pier and
19Exposition Authority for that fiscal year, less the amount
20deposited into the McCormick Place Expansion Project Fund by
21the State Treasurer in the respective month under subsection
22(g) of Section 13 of the Metropolitan Pier and Exposition
23Authority Act, plus cumulative deficiencies in the deposits
24required under this Section for previous months and years,
25shall be deposited into the McCormick Place Expansion Project
26Fund, until the full amount requested for the fiscal year, but

 

 

10200HB1539sam001- 568 -LRB102 03555 HLH 39048 a

1not in excess of the amount specified above as "Total
2Deposit", has been deposited.
3    Subject to payment of amounts into the Capital Projects
4Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
5and the McCormick Place Expansion Project Fund pursuant to the
6preceding paragraphs or in any amendments thereto hereafter
7enacted, for aviation fuel sold on or after December 1, 2019,
8the Department shall each month deposit into the Aviation Fuel
9Sales Tax Refund Fund an amount estimated by the Department to
10be required for refunds of the 80% portion of the tax on
11aviation fuel under this Act. The Department shall only
12deposit moneys into the Aviation Fuel Sales Tax Refund Fund
13under this paragraph for so long as the revenue use
14requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
15binding on the State.
16    Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning July 1, 1993 and ending on September 30,
202013, the Department shall each month pay into the Illinois
21Tax Increment Fund 0.27% of 80% of the net revenue realized for
22the preceding month from the 6.25% general rate on the selling
23price of tangible personal property.
24    Subject to payment of amounts into the Build Illinois Fund
25and the McCormick Place Expansion Project Fund pursuant to the
26preceding paragraphs or in any amendments thereto hereafter

 

 

10200HB1539sam001- 569 -LRB102 03555 HLH 39048 a

1enacted, beginning with the receipt of the first report of
2taxes paid by an eligible business and continuing for a
325-year period, the Department shall each month pay into the
4Energy Infrastructure Fund 80% of the net revenue realized
5from the 6.25% general rate on the selling price of
6Illinois-mined coal that was sold to an eligible business. For
7purposes of this paragraph, the term "eligible business" means
8a new electric generating facility certified pursuant to
9Section 605-332 of the Department of Commerce and Economic
10Opportunity Law of the Civil Administrative Code of Illinois.
11    Subject to payment of amounts into the Build Illinois
12Fund, the McCormick Place Expansion Project Fund, the Illinois
13Tax Increment Fund, and the Energy Infrastructure Fund
14pursuant to the preceding paragraphs or in any amendments to
15this Section hereafter enacted, beginning on the first day of
16the first calendar month to occur on or after August 26, 2014
17(the effective date of Public Act 98-1098), each month, from
18the collections made under Section 9 of the Use Tax Act,
19Section 9 of the Service Use Tax Act, Section 9 of the Service
20Occupation Tax Act, and Section 3 of the Retailers' Occupation
21Tax Act, the Department shall pay into the Tax Compliance and
22Administration Fund, to be used, subject to appropriation, to
23fund additional auditors and compliance personnel at the
24Department of Revenue, an amount equal to 1/12 of 5% of 80% of
25the cash receipts collected during the preceding fiscal year
26by the Audit Bureau of the Department under the Use Tax Act,

 

 

10200HB1539sam001- 570 -LRB102 03555 HLH 39048 a

1the Service Use Tax Act, the Service Occupation Tax Act, the
2Retailers' Occupation Tax Act, and associated local occupation
3and use taxes administered by the Department.
4    Subject to payments of amounts into the Build Illinois
5Fund, the McCormick Place Expansion Project Fund, the Illinois
6Tax Increment Fund, the Energy Infrastructure Fund, and the
7Tax Compliance and Administration Fund as provided in this
8Section, beginning on July 1, 2018 the Department shall pay
9each month into the Downstate Public Transportation Fund the
10moneys required to be so paid under Section 2-3 of the
11Downstate 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

 

 

10200HB1539sam001- 571 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 572 -LRB102 03555 HLH 39048 a

1        2043....................................$445,100,000
2    Beginning July 1, 2021 and until July 1, 2022, subject to
3the payment of amounts into the State and Local Sales Tax
4Reform Fund, the Build Illinois Fund, the McCormick Place
5Expansion Project Fund, the Illinois Tax Increment Fund, the
6Energy Infrastructure 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 State and Local Sales Tax Reform Fund, the Build
13Illinois Fund, the McCormick Place Expansion Project Fund, the
14Illinois Tax Increment Fund, the Energy Infrastructure 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 State and Local
21Sales Tax Reform Fund, the Build Illinois Fund, the McCormick
22Place Expansion Project Fund, the Illinois Tax Increment Fund,
23the Energy Infrastructure Fund, and the Tax Compliance and
24Administration 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

 

 

10200HB1539sam001- 573 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 574 -LRB102 03555 HLH 39048 a

1accordance with Section 8a of the State Finance Act.
2    As soon as possible after the first day of each month, upon
3certification of the Department of Revenue, the Comptroller
4shall order transferred and the Treasurer shall transfer from
5the General Revenue Fund to the Motor Fuel Tax Fund an amount
6equal to 1.7% of 80% of the net revenue realized under this Act
7for the second preceding month. Beginning April 1, 2000, this
8transfer is no longer required and shall not be made.
9    Net revenue realized for a month shall be the revenue
10collected by the State pursuant to this Act, less the amount
11paid out during that month as refunds to taxpayers for
12overpayment of liability.
13    For greater simplicity of administration, manufacturers,
14importers and wholesalers whose products are sold at retail in
15Illinois by numerous retailers, and who wish to do so, may
16assume the responsibility for accounting and paying to the
17Department all tax accruing under this Act with respect to
18such sales, if the retailers who are affected do not make
19written objection to the Department to this arrangement.
20(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
21100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
2215, Section 15-10, eff. 6-5-19; 101-10, Article 25, Section
2325-105, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
246-28-19; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
 
25    Section 65-10. The Retailers' Occupation Tax Act is

 

 

10200HB1539sam001- 575 -LRB102 03555 HLH 39048 a

1amended by changing Sections 2-8, 2-10 and 3 as follows:
 
2    (35 ILCS 120/2-8)
3    Sec. 2-8. Sales tax holiday items.
4    (a) Any The tangible personal property described in this
5subsection is a sales tax holiday item and qualifies for the
61.25% reduced rate of tax for the period set forth in Section
72-10 of this Act (hereinafter referred to as the Sales Tax
8Holiday Period). The reduced rate on these items shall be
9administered under the provisions of subsection (b) of this
10Section. The following items are subject to the reduced rate:
11        (1) Clothing items that each have a retail selling
12    price of less than $125 $100.
13        "Clothing" means, unless otherwise specified in this
14    Section, all human wearing apparel suitable for general
15    use. "Clothing" does not include clothing accessories,
16    protective equipment, or sport or recreational equipment.
17    "Clothing" includes, but is not limited to: household and
18    shop aprons; athletic supporters; bathing suits and caps;
19    belts and suspenders; boots; coats and jackets; ear muffs;
20    footlets; gloves and mittens for general use; hats and
21    caps; hosiery; insoles for shoes; lab coats; neckties;
22    overshoes; pantyhose; rainwear; rubber pants; sandals;
23    scarves; shoes and shoelaces; slippers; sneakers; socks
24    and stockings; steel-toed shoes; underwear; and school
25    uniforms.

 

 

10200HB1539sam001- 576 -LRB102 03555 HLH 39048 a

1        "Clothing accessories" means, but is not limited to:
2    briefcases; cosmetics; hair notions, including, but not
3    limited to barrettes, hair bows, and hair nets; handbags;
4    handkerchiefs; jewelry; non-prescription sunglasses;
5    umbrellas; wallets; watches; and wigs and hair pieces.
6        "Protective equipment" means, but is not limited to:
7    breathing masks; clean room apparel and equipment; ear and
8    hearing protectors; face shields; hard hats; helmets;
9    paint or dust respirators; protective gloves; safety
10    glasses and goggles; safety belts; tool belts; and
11    welder's gloves and masks.
12        "Sport or recreational equipment" means, but is not
13    limited to: ballet and tap shoes; cleated or spiked
14    athletic shoes; gloves, including, but not limited to,
15    baseball, bowling, boxing, hockey, and golf gloves;
16    goggles; hand and elbow guards; life preservers and vests;
17    mouth guards; roller and ice skates; shin guards; shoulder
18    pads; ski boots; waders; and wetsuits and fins.
19        (2) School supplies. "School supplies" means, unless
20    otherwise specified in this Section, items used by a
21    student in a course of study. The purchase of school
22    supplies for use by persons other than students for use in
23    a course of study are not eligible for the reduced rate of
24    tax. "School supplies" do not include school art supplies;
25    school instructional materials; cameras; film and memory
26    cards; videocameras, tapes, and videotapes; computers;

 

 

10200HB1539sam001- 577 -LRB102 03555 HLH 39048 a

1    cell phones; Personal Digital Assistants (PDAs); handheld
2    electronic schedulers; and school computer supplies.
3        "School supplies" includes, but is not limited to:
4    binders; book bags; calculators; cellophane tape;
5    blackboard chalk; compasses; composition books; crayons;
6    erasers; expandable, pocket, plastic, and manila folders;
7    glue, paste, and paste sticks; highlighters; index cards;
8    index card boxes; legal pads; lunch boxes; markers;
9    notebooks; paper, including loose leaf ruled notebook
10    paper, copy paper, graph paper, tracing paper, manila
11    paper, colored paper, poster board, and construction
12    paper; pencils; pencil leads; pens; ink and ink refills
13    for pens; pencil boxes and other school supply boxes;
14    pencil sharpeners; protractors; rulers; scissors; and
15    writing tablets.
16        "School art supply" means an item commonly used by a
17    student in a course of study for artwork and includes only
18    the following items: clay and glazes; acrylic, tempera,
19    and oil paint; paintbrushes for artwork; sketch and
20    drawing pads; and watercolors.
21        "School instructional material" means written material
22    commonly used by a student in a course of study as a
23    reference and to learn the subject being taught and
24    includes only the following items: reference books;
25    reference maps and globes; textbooks; and workbooks.
26        "School computer supply" means an item commonly used

 

 

10200HB1539sam001- 578 -LRB102 03555 HLH 39048 a

1    by a student in a course of study in which a computer is
2    used and applies only to the following items: flashdrives
3    and other computer data storage devices; data storage
4    media, such as diskettes and compact disks; boxes and
5    cases for disk storage; external ports or drives; computer
6    cases; computer cables; computer printers; and printer
7    cartridges, toner, and ink.
8    (b) Administration. Notwithstanding any other provision of
9this Act, the reduced rate of tax under Section 3-10 of this
10Act for clothing and school supplies shall be administered by
11the Department under the provisions of this subsection (b).
12        (1) Bundled sales. Items that qualify for the reduced
13    rate of tax that are bundled together with items that do
14    not qualify for the reduced rate of tax and that are sold
15    for one itemized price will be subject to the reduced rate
16    of tax only if the value of the items that qualify for the
17    reduced rate of tax exceeds the value of the items that do
18    not qualify for the reduced rate of tax.
19        (2) Coupons and discounts. An unreimbursed discount by
20    the seller reduces the sales price of the property so that
21    the discounted sales price determines whether the sales
22    price is within a sales tax holiday price threshold. A
23    coupon or other reduction in the sales price is treated as
24    a discount if the seller is not reimbursed for the coupon
25    or reduction amount by a third party.
26        (3) Splitting of items normally sold together.

 

 

10200HB1539sam001- 579 -LRB102 03555 HLH 39048 a

1    Articles that are normally sold as a single unit must
2    continue to be sold in that manner. Such articles cannot
3    be priced separately and sold as individual items in order
4    to obtain the reduced rate of tax. For example, a pair of
5    shoes cannot have each shoe sold separately so that the
6    sales price of each shoe is within a sales tax holiday
7    price threshold.
8        (4) Rain checks. A rain check is a procedure that
9    allows a customer to purchase an item at a certain price at
10    a later time because the particular item was out of stock.
11    Eligible property that customers purchase during the Sales
12    Tax Holiday Period with the use of a rain check will
13    qualify for the reduced rate of tax regardless of when the
14    rain check was issued. Issuance of a rain check during the
15    Sales Tax Holiday Period will not qualify eligible
16    property for the reduced rate of tax if the property is
17    actually purchased after the Sales Tax Holiday Period.
18        (5) Exchanges. The procedure for an exchange in
19    regards to a sales tax holiday is as follows:
20            (A) If a customer purchases an item of eligible
21        property during the Sales Tax Holiday Period, but
22        later exchanges the item for a similar eligible item,
23        even if a different size, different color, or other
24        feature, no additional tax is due even if the exchange
25        is made after the Sales Tax Holiday Period.
26            (B) If a customer purchases an item of eligible

 

 

10200HB1539sam001- 580 -LRB102 03555 HLH 39048 a

1        property during the Sales Tax Holiday Period, but
2        after the Sales Tax Holiday Period has ended, the
3        customer returns the item and receives credit on the
4        purchase of a different item, the 6.25% general
5        merchandise sales tax rate is due on the sale of the
6        newly purchased item.
7            (C) If a customer purchases an item of eligible
8        property before the Sales Tax Holiday Period, but
9        during the Sales Tax Holiday Period the customer
10        returns the item and receives credit on the purchase
11        of a different item of eligible property, the reduced
12        rate of tax is due on the sale of the new item if the
13        new item is purchased during the Sales Tax Holiday
14        Period.
15        (6) (Blank). Delivery charges. Delivery charges,
16    including shipping, handling and service charges, are part
17    of the sales price of eligible property.
18        (7) Order date and back orders. For the purpose of a
19    sales tax holiday, eligible property qualifies for the
20    reduced rate of tax if: (i) the item is both delivered to
21    and paid for by the customer during the Sales Tax Holiday
22    Period or (ii) the customer orders and pays for the item
23    and the seller accepts the order during the Sales Tax
24    Holiday Period for immediate shipment, even if delivery is
25    made after the Sales Tax Holiday Period. The seller
26    accepts an order when the seller has taken action to fill

 

 

10200HB1539sam001- 581 -LRB102 03555 HLH 39048 a

1    the order for immediate shipment. Actions to fill an order
2    include placement of an "in date" stamp on an order or
3    assignment of an "order number" to an order within the
4    Sales Tax Holiday Period. An order is for immediate
5    shipment when the customer does not request delayed
6    shipment. An order is for immediate shipment
7    notwithstanding that the shipment may be delayed because
8    of a backlog of orders or because stock is currently
9    unavailable to, or on back order by, the seller.
10        (8) Returns. For a 60-day period immediately after the
11    Sales Tax Holiday Period, if a customer returns an item
12    that would qualify for the reduced rate of tax, credit for
13    or refund of sales tax shall be given only at the reduced
14    rate unless the customer provides a receipt or invoice
15    that shows tax was paid at the 6.25% general merchandise
16    rate, or the seller has sufficient documentation to show
17    that tax was paid at the 6.25% general merchandise rate on
18    the specific item. This 60-day period is set solely for
19    the purpose of designating a time period during which the
20    customer must provide documentation that shows that the
21    appropriate sales tax rate was paid on returned
22    merchandise. The 60-day period is not intended to change a
23    seller's policy on the time period during which the seller
24    will accept returns.
25    (c) The Department may implement the provisions of this
26Section through the use of emergency rules, along with

 

 

10200HB1539sam001- 582 -LRB102 03555 HLH 39048 a

1permanent rules filed concurrently with such emergency rules,
2in accordance with the provisions of Section 5-45 of the
3Illinois Administrative Procedure Act. For purposes of the
4Illinois Administrative Procedure Act, the adoption of rules
5to implement the provisions of this Section shall be deemed an
6emergency and necessary for the public interest, safety, and
7welfare.
8(Source: P.A. 96-1012, eff. 7-7-10.)
 
9    (35 ILCS 120/2-10)
10    Sec. 2-10. Rate of tax. Unless otherwise provided in this
11Section, the tax imposed by this Act is at the rate of 6.25% of
12gross receipts from sales of tangible personal property made
13in the course of business.
14    Beginning on July 1, 2000 and through December 31, 2000,
15with respect to motor fuel, as defined in Section 1.1 of the
16Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
17the Use Tax Act, the tax is imposed at the rate of 1.25%.
18    Beginning on August 6, 2010 through August 15, 2010, and
19beginning again on August 5, 2022 through August 14, 2022,
20with respect to sales tax holiday items as defined in Section
212-8 of this Act, the tax is imposed at the rate of 1.25%.
22    Within 14 days after the effective date of this amendatory
23Act of the 91st General Assembly, each retailer of motor fuel
24and gasohol shall cause the following notice to be posted in a
25prominently visible place on each retail dispensing device

 

 

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1that is used to dispense motor fuel or gasohol in the State of
2Illinois: "As of July 1, 2000, the State of Illinois has
3eliminated the State's share of sales tax on motor fuel and
4gasohol through December 31, 2000. The price on this pump
5should reflect the elimination of the tax." The notice shall
6be printed in bold print on a sign that is no smaller than 4
7inches by 8 inches. The sign shall be clearly visible to
8customers. Any retailer who fails to post or maintain a
9required sign through December 31, 2000 is guilty of a petty
10offense for which the fine shall be $500 per day per each
11retail premises where a violation occurs.
12    With respect to gasohol, as defined in the Use Tax Act, the
13tax imposed by this Act applies to (i) 70% of the proceeds of
14sales made on or after January 1, 1990, and before July 1,
152003, (ii) 80% of the proceeds of sales made on or after July
161, 2003 and on or before July 1, 2017, and (iii) 100% of the
17proceeds of sales made thereafter. If, at any time, however,
18the tax under this Act on sales of gasohol, as defined in the
19Use Tax Act, is imposed at the rate of 1.25%, then the tax
20imposed by this Act applies to 100% of the proceeds of sales of
21gasohol made during that time.
22    With respect to majority blended ethanol fuel, as defined
23in the Use Tax Act, the tax imposed by this Act does not apply
24to the proceeds of sales made on or after July 1, 2003 and on
25or before December 31, 2023 but applies to 100% of the proceeds
26of sales made thereafter.

 

 

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1    With respect to biodiesel blends, as defined in the Use
2Tax Act, with no less than 1% and no more than 10% biodiesel,
3the tax imposed by this Act applies to (i) 80% of the proceeds
4of sales made on or after July 1, 2003 and on or before
5December 31, 2018 and (ii) 100% of the proceeds of sales made
6thereafter. If, at any time, however, the tax under this Act on
7sales of biodiesel blends, as defined in the Use Tax Act, with
8no less than 1% and no more than 10% biodiesel is imposed at
9the rate of 1.25%, then the tax imposed by this Act applies to
10100% of the proceeds of sales of biodiesel blends with no less
11than 1% and no more than 10% biodiesel made during that time.
12    With respect to 100% biodiesel, as defined in the Use Tax
13Act, and biodiesel blends, as defined in the Use Tax Act, with
14more than 10% but no more than 99% biodiesel, the tax imposed
15by this Act does not apply to the proceeds of sales made on or
16after July 1, 2003 and on or before December 31, 2023 but
17applies to 100% of the proceeds of sales made thereafter.
18    With respect to food for human consumption that is to be
19consumed off the premises where it is sold (other than
20alcoholic beverages, food consisting of or infused with adult
21use cannabis, soft drinks, and food that has been prepared for
22immediate consumption) and prescription and nonprescription
23medicines, drugs, medical appliances, products classified as
24Class III medical devices by the United States Food and Drug
25Administration that are used for cancer treatment pursuant to
26a prescription, as well as any accessories and components

 

 

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1related to those devices, modifications to a motor vehicle for
2the purpose of rendering it usable by a person with a
3disability, and insulin, blood sugar testing materials,
4syringes, and needles used by human diabetics, the tax is
5imposed at the rate of 1%. For the purposes of this Section,
6until September 1, 2009: the term "soft drinks" means any
7complete, finished, ready-to-use, non-alcoholic drink, whether
8carbonated or not, including but not limited to soda water,
9cola, fruit juice, vegetable juice, carbonated water, and all
10other preparations commonly known as soft drinks of whatever
11kind or description that are contained in any closed or sealed
12bottle, can, carton, or container, regardless of size; but
13"soft drinks" does not include coffee, tea, non-carbonated
14water, infant formula, milk or milk products as defined in the
15Grade A Pasteurized Milk and Milk Products Act, or drinks
16containing 50% or more natural 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" do 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 C.F.R. § 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 the effective date of this amendatory Act of
10the 98th General Assembly, "prescription and nonprescription
11medicines and drugs" includes medical cannabis purchased from
12a registered dispensing organization under the Compassionate
13Use of Medical Cannabis 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. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
20102-4, eff. 4-27-21.)
 
21    (35 ILCS 120/3)  (from Ch. 120, par. 442)
22    Sec. 3. Except as provided in this Section, on or before
23the twentieth day of each calendar month, every person engaged
24in the business of selling tangible personal property at
25retail in this State during the preceding calendar month shall

 

 

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1file a return with the Department, stating:
2        1. The name of the seller;
3        2. His residence address and the address of his
4    principal place of business and the address of the
5    principal place of business (if that is a different
6    address) from which he engages in the business of selling
7    tangible personal property at retail in this State;
8        3. Total amount of receipts received by him during the
9    preceding calendar month or quarter, as the case may be,
10    from sales of tangible personal property, and from
11    services furnished, by him during such preceding calendar
12    month or quarter;
13        4. Total amount received by him during the preceding
14    calendar month or quarter on charge and time sales of
15    tangible personal property, and from services furnished,
16    by him prior to the month or quarter for which the return
17    is filed;
18        5. Deductions allowed by law;
19        6. Gross receipts which were received by him during
20    the preceding calendar month or quarter and upon the basis
21    of which the tax is imposed;
22        7. The amount of credit provided in Section 2d of this
23    Act;
24        8. The amount of tax due;
25        9. The signature of the taxpayer; and
26        10. Such other reasonable information as the

 

 

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1    Department may require.
2    On and after January 1, 2018, except for returns for motor
3vehicles, watercraft, aircraft, and trailers that are required
4to be registered with an agency of this State, with respect to
5retailers whose annual gross receipts average $20,000 or more,
6all returns required to be filed pursuant to this Act shall be
7filed electronically. Retailers who demonstrate that they do
8not have access to the Internet or demonstrate hardship in
9filing electronically may petition the Department to waive the
10electronic filing requirement.
11    If a taxpayer fails to sign a return within 30 days after
12the proper notice and demand for signature by the Department,
13the return shall be considered valid and any amount shown to be
14due on the return shall be deemed assessed.
15    Each return shall be accompanied by the statement of
16prepaid tax issued pursuant to Section 2e for which credit is
17claimed.
18    Prior to October 1, 2003, and on and after September 1,
192004 a retailer may accept a Manufacturer's Purchase Credit
20certification from a purchaser in satisfaction of Use Tax as
21provided in Section 3-85 of the Use Tax Act if the purchaser
22provides the appropriate documentation as required by Section
233-85 of the Use Tax Act. A Manufacturer's Purchase Credit
24certification, accepted by a retailer prior to October 1, 2003
25and on and after September 1, 2004 as provided in Section 3-85
26of the Use Tax Act, may be used by that retailer to satisfy

 

 

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1Retailers' Occupation Tax liability in the amount claimed in
2the certification, not to exceed 6.25% of the receipts subject
3to tax from a qualifying purchase. A Manufacturer's Purchase
4Credit reported on any original or amended return filed under
5this Act after October 20, 2003 for reporting periods prior to
6September 1, 2004 shall be disallowed. Manufacturer's Purchase
7Purchaser Credit reported on annual returns due on or after
8January 1, 2005 will be disallowed for periods prior to
9September 1, 2004. No Manufacturer's Purchase Credit may be
10used after September 30, 2003 through August 31, 2004 to
11satisfy any tax liability imposed under this Act, including
12any audit liability.
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; and
6        6. Such other reasonable information as the Department
7    may require.
8    Every person engaged in the business of selling aviation
9fuel at retail in this State during the preceding calendar
10month shall, instead of reporting and paying tax as otherwise
11required by this Section, report and pay such tax on a separate
12aviation fuel tax return. The requirements related to the
13return shall be as otherwise provided in this Section.
14Notwithstanding any other provisions of this Act to the
15contrary, retailers selling aviation fuel shall file all
16aviation fuel tax returns and shall make all aviation fuel tax
17payments by electronic means in the manner and form required
18by the Department. For purposes of this Section, "aviation
19fuel" means jet fuel and aviation gasoline.
20    Beginning on October 1, 2003, any person who is not a
21licensed distributor, importing distributor, or manufacturer,
22as defined in the Liquor Control Act of 1934, but is engaged in
23the business of selling, at retail, alcoholic liquor shall
24file a statement with the Department of Revenue, in a format
25and at a time prescribed by the Department, showing the total
26amount paid for alcoholic liquor purchased during the

 

 

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

 

 

10200HB1539sam001- 593 -LRB102 03555 HLH 39048 a

1distributor, or manufacturer shall notify the retailer as to
2the method by which the distributor, importing distributor, or
3manufacturer will provide the sales information. If the
4retailer is unable to receive the sales information by
5electronic means, the distributor, importing distributor, or
6manufacturer shall furnish the sales information by personal
7delivery or by mail. For purposes of this paragraph, the term
8"electronic means" includes, but is not limited to, the use of
9a secure Internet website, e-mail, or facsimile.
10    If a total amount of less than $1 is payable, refundable or
11creditable, such amount shall be disregarded if it is less
12than 50 cents and shall be increased to $1 if it is 50 cents or
13more.
14    Notwithstanding any other provision of this Act to the
15contrary, retailers subject to tax on cannabis shall file all
16cannabis tax returns and shall make all cannabis tax payments
17by electronic means in the manner and form required by the
18Department.
19    Beginning October 1, 1993, a taxpayer who has an average
20monthly tax liability of $150,000 or more shall make all
21payments required by rules of the Department by electronic
22funds transfer. Beginning October 1, 1994, a taxpayer who has
23an average monthly tax liability of $100,000 or more shall
24make all payments required by rules of the Department by
25electronic funds transfer. Beginning October 1, 1995, a
26taxpayer who has an average monthly tax liability of $50,000

 

 

10200HB1539sam001- 594 -LRB102 03555 HLH 39048 a

1or more shall make all payments required by rules of the
2Department by electronic funds transfer. Beginning October 1,
32000, a taxpayer who has an annual tax liability of $200,000 or
4more shall make all payments required by rules of the
5Department by electronic funds transfer. The term "annual tax
6liability" shall be the sum of the taxpayer's liabilities
7under this Act, and under all other State and local occupation
8and use tax laws administered by the Department, for the
9immediately preceding calendar year. The term "average monthly
10tax liability" shall be the sum of the taxpayer's liabilities
11under this Act, and under all other State and local occupation
12and use tax laws administered by the Department, for the
13immediately preceding calendar year divided by 12. Beginning
14on October 1, 2002, a taxpayer who has a tax liability in the
15amount set forth in subsection (b) of Section 2505-210 of the
16Department of Revenue Law shall make all payments required by
17rules of the Department by electronic funds transfer.
18    Before August 1 of each year beginning in 1993, the
19Department shall notify all taxpayers required to make
20payments by electronic funds transfer. All taxpayers required
21to make payments by electronic funds transfer shall make those
22payments for a minimum of one year beginning on October 1.
23    Any taxpayer not required to make payments by electronic
24funds transfer may make payments by electronic funds transfer
25with the permission of the Department.
26    All taxpayers required to make payment by electronic funds

 

 

10200HB1539sam001- 595 -LRB102 03555 HLH 39048 a

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

 

 

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1liability with the Department does not exceed $50, the
2Department may authorize his returns to be filed on an annual
3basis, with the return for a given year being due by January 20
4of the following year.
5    Such quarter annual and annual returns, as to form and
6substance, shall be subject to the same requirements as
7monthly returns.
8    Notwithstanding any other provision in this Act concerning
9the time within which a retailer may file his return, in the
10case of any retailer who ceases to engage in a kind of business
11which makes him responsible for filing returns under this Act,
12such retailer shall file a final return under this Act with the
13Department not more than one month after discontinuing such
14business.
15    Where the same person has more than one business
16registered with the Department under separate registrations
17under this Act, such person may not file each return that is
18due as a single return covering all such registered
19businesses, but shall file separate returns for each such
20registered business.
21    In addition, with respect to motor vehicles, watercraft,
22aircraft, and trailers that are required to be registered with
23an agency of this State, except as otherwise provided in this
24Section, every retailer selling this kind of tangible personal
25property shall file, with the Department, upon a form to be
26prescribed and supplied by the Department, a separate return

 

 

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1for each such item of tangible personal property which the
2retailer sells, except that if, in the same transaction, (i) a
3retailer of aircraft, watercraft, motor vehicles or trailers
4transfers more than one aircraft, watercraft, motor vehicle or
5trailer to another aircraft, watercraft, motor vehicle
6retailer or trailer retailer for the purpose of resale or (ii)
7a retailer of aircraft, watercraft, motor vehicles, or
8trailers transfers more than one aircraft, watercraft, motor
9vehicle, or trailer to a purchaser for use as a qualifying
10rolling stock as provided in Section 2-5 of this Act, then that
11seller may report the transfer of all aircraft, watercraft,
12motor vehicles or trailers involved in that transaction to the
13Department on the same uniform invoice-transaction reporting
14return form. For purposes of this Section, "watercraft" means
15a Class 2, Class 3, or Class 4 watercraft as defined in Section
163-2 of the Boat Registration and Safety Act, a personal
17watercraft, or any boat equipped with an inboard motor.
18    In addition, with respect to motor vehicles, watercraft,
19aircraft, and trailers that are required to be registered with
20an agency of this State, every person who is engaged in the
21business of leasing or renting such items and who, in
22connection with such business, sells any such item to a
23retailer for the purpose of resale is, notwithstanding any
24other provision of this Section to the contrary, authorized to
25meet the return-filing requirement of this Act by reporting
26the transfer of all the aircraft, watercraft, motor vehicles,

 

 

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

 

 

10200HB1539sam001- 599 -LRB102 03555 HLH 39048 a

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

 

 

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

 

 

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

 

 

10200HB1539sam001- 602 -LRB102 03555 HLH 39048 a

1    Refunds made by the seller during the preceding return
2period to purchasers, on account of tangible personal property
3returned to the seller, shall be allowed as a deduction under
4subdivision 5 of his monthly or quarterly return, as the case
5may be, in case the seller had theretofore included the
6receipts from the sale of such tangible personal property in a
7return filed by him and had paid the tax imposed by this Act
8with respect to such receipts.
9    Where the seller is a corporation, the return filed on
10behalf of such corporation shall be signed by the president,
11vice-president, secretary or treasurer or by the properly
12accredited agent of such corporation.
13    Where the seller is a limited liability company, the
14return filed on behalf of the limited liability company shall
15be signed by a manager, member, or properly accredited agent
16of the limited liability company.
17    Except as provided in this Section, the retailer filing
18the return under this Section shall, at the time of filing such
19return, pay to the Department the amount of tax imposed by this
20Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
21on and after January 1, 1990, or $5 per calendar year,
22whichever is greater, which is allowed to reimburse the
23retailer for the expenses incurred in keeping records,
24preparing and filing returns, remitting the tax and supplying
25data to the Department on request. On and after January 1,
262021, a certified service provider, as defined in the Leveling

 

 

10200HB1539sam001- 603 -LRB102 03555 HLH 39048 a

1the Playing Field for Illinois Retail Act, filing the return
2under this Section on behalf of a remote retailer shall, at the
3time of such return, pay to the Department the amount of tax
4imposed by this Act less a discount of 1.75%. A remote retailer
5using a certified service provider to file a return on its
6behalf, as provided in the Leveling the Playing Field for
7Illinois Retail Act, is not eligible for the discount. When
8determining the discount allowed under this Section, retailers
9shall include the amount of tax that would have been due at the
106.25% rate but for the 1.25% rate imposed on sales tax holiday
11items under this amendatory Act of the 102nd General Assembly.
12The discount under this Section is not allowed for the 1.25%
13portion of taxes paid on aviation fuel that is subject to the
14revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1547133. Any prepayment made pursuant to Section 2d of this Act
16shall be included in the amount on which such 2.1% or 1.75%
17discount is computed. In the case of retailers who report and
18pay the tax on a transaction by transaction basis, as provided
19in this Section, such discount shall be taken with each such
20tax remittance instead of when such retailer files his
21periodic return. The discount allowed under this Section is
22allowed only for returns that are filed in the manner required
23by this Act. The Department may disallow the discount for
24retailers whose certificate of registration is revoked at the
25time the return is filed, but only if the Department's
26decision to revoke the certificate of registration has become

 

 

10200HB1539sam001- 604 -LRB102 03555 HLH 39048 a

1final.
2    Before October 1, 2000, if the taxpayer's average monthly
3tax liability to the Department under this Act, the Use Tax
4Act, the Service Occupation Tax Act, and the Service Use Tax
5Act, excluding any liability for prepaid sales tax to be
6remitted in accordance with Section 2d of this Act, was
7$10,000 or more during the preceding 4 complete calendar
8quarters, he shall file a return with the Department each
9month by the 20th day of the month next following the month
10during which such tax liability is incurred and shall make
11payments to the Department on or before the 7th, 15th, 22nd and
12last day of the month during which such liability is incurred.
13On and after October 1, 2000, if the taxpayer's average
14monthly tax liability to the Department under this Act, the
15Use Tax Act, the Service Occupation Tax Act, and the Service
16Use Tax Act, excluding any liability for prepaid sales tax to
17be remitted in accordance with Section 2d of this Act, was
18$20,000 or more during the preceding 4 complete calendar
19quarters, he shall file a return with the Department each
20month by the 20th day of the month next following the month
21during which such tax liability is incurred and shall make
22payment to the Department on or before the 7th, 15th, 22nd and
23last day of the month during which such liability is incurred.
24If the month during which such tax liability is incurred began
25prior to January 1, 1985, each payment shall be in an amount
26equal to 1/4 of the taxpayer's actual liability for the month

 

 

10200HB1539sam001- 605 -LRB102 03555 HLH 39048 a

1or an amount set by the Department not to exceed 1/4 of the
2average monthly liability of the taxpayer to the Department
3for the preceding 4 complete calendar quarters (excluding the
4month of highest liability and the month of lowest liability
5in such 4 quarter period). If the month during which such tax
6liability is incurred begins on or after January 1, 1985 and
7prior to January 1, 1987, each payment shall be in an amount
8equal to 22.5% of the taxpayer's actual liability for the
9month or 27.5% of the taxpayer's liability for the same
10calendar month of the preceding year. If the month during
11which such tax liability is incurred begins on or after
12January 1, 1987 and prior to January 1, 1988, each payment
13shall be in an amount equal to 22.5% of the taxpayer's actual
14liability for the month or 26.25% of the taxpayer's liability
15for the same calendar month of the preceding year. If the month
16during which such tax liability is incurred begins on or after
17January 1, 1988, and prior to January 1, 1989, or begins on or
18after January 1, 1996, each payment shall be in an amount equal
19to 22.5% of the taxpayer's actual liability for the month or
2025% of the taxpayer's liability for the same calendar month of
21the preceding year. If the month during which such tax
22liability is incurred begins on or after January 1, 1989, and
23prior to January 1, 1996, each payment shall be in an amount
24equal to 22.5% of the taxpayer's actual liability for the
25month or 25% of the taxpayer's liability for the same calendar
26month of the preceding year or 100% of the taxpayer's actual

 

 

10200HB1539sam001- 606 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 607 -LRB102 03555 HLH 39048 a

1quarters (excluding the month of highest liability and the
2month of lowest liability) is less than $19,000 or until such
3taxpayer's average monthly liability to the Department as
4computed for each calendar quarter of the 4 preceding complete
5calendar quarter period is less than $20,000. However, if a
6taxpayer can show the Department that a substantial change in
7the taxpayer's business has occurred which causes the taxpayer
8to anticipate that his average monthly tax liability for the
9reasonably foreseeable future will fall below the $20,000
10threshold stated above, then such taxpayer may petition the
11Department for a change in such taxpayer's reporting status.
12The Department shall change such taxpayer's reporting status
13unless it finds that such change is seasonal in nature and not
14likely to be long term. Quarter monthly payment status shall
15be determined under this paragraph as if the rate reduction to
161.25% in this amendatory Act of the 102nd General Assembly on
17sales tax holiday items had not occurred. For quarter monthly
18payments due on or after July 1, 2023 and through June 30,
192024, "25% of the taxpayer's liability for the same calendar
20month of the preceding year" shall be determined as if the rate
21reduction to 1.25% in this amendatory Act of the 102nd General
22Assembly on sales tax holiday items had not occurred. If any
23such quarter monthly payment is not paid at the time or in the
24amount required by this Section, then the taxpayer shall be
25liable for penalties and interest on the difference between
26the minimum amount due as a payment and the amount of such

 

 

10200HB1539sam001- 608 -LRB102 03555 HLH 39048 a

1quarter monthly payment actually and timely paid, except
2insofar as the taxpayer has previously made payments for that
3month to the Department in excess of the minimum payments
4previously due as provided in this Section. The Department
5shall make reasonable rules and regulations to govern the
6quarter monthly payment amount and quarter monthly payment
7dates for taxpayers who file on other than a calendar monthly
8basis.
9    The provisions of this paragraph apply before October 1,
102001. Without regard to whether a taxpayer is required to make
11quarter monthly payments as specified above, any taxpayer who
12is required by Section 2d of this Act to collect and remit
13prepaid taxes and has collected prepaid taxes which average in
14excess of $25,000 per month during the preceding 2 complete
15calendar quarters, shall file a return with the Department as
16required by Section 2f and shall make payments to the
17Department on or before the 7th, 15th, 22nd and last day of the
18month during which such liability is incurred. If the month
19during which such tax liability is incurred began prior to
20September 1, 1985 (the effective date of Public Act 84-221),
21each payment shall be in an amount not less than 22.5% of the
22taxpayer's actual liability under Section 2d. If the month
23during which such tax liability is incurred begins on or after
24January 1, 1986, each payment shall be in an amount equal to
2522.5% of the taxpayer's actual liability for the month or
2627.5% of the taxpayer's liability for the same calendar month

 

 

10200HB1539sam001- 609 -LRB102 03555 HLH 39048 a

1of the preceding calendar year. If the month during which such
2tax liability is incurred begins on or after January 1, 1987,
3each payment shall be in an amount equal to 22.5% of the
4taxpayer's actual liability for the month or 26.25% of the
5taxpayer's liability for the same calendar month of the
6preceding year. The amount of such quarter monthly payments
7shall be credited against the final tax liability of the
8taxpayer's return for that month filed under this Section or
9Section 2f, as the case may be. Once applicable, the
10requirement of the making of quarter monthly payments to the
11Department pursuant to this paragraph shall continue until
12such taxpayer's average monthly prepaid tax collections during
13the preceding 2 complete calendar quarters is $25,000 or less.
14If any such quarter monthly payment is not paid at the time or
15in the amount required, the taxpayer shall be liable for
16penalties and interest on such difference, except insofar as
17the taxpayer has previously made payments for that month in
18excess of the minimum payments previously due.
19    The provisions of this paragraph apply on and after
20October 1, 2001. Without regard to whether a taxpayer is
21required to make quarter monthly payments as specified above,
22any taxpayer who is required by Section 2d of this Act to
23collect and remit prepaid taxes and has collected prepaid
24taxes that average in excess of $20,000 per month during the
25preceding 4 complete calendar quarters shall file a return
26with the Department as required by Section 2f and shall make

 

 

10200HB1539sam001- 610 -LRB102 03555 HLH 39048 a

1payments to the Department on or before the 7th, 15th, 22nd and
2last day of the month during which the liability is incurred.
3Each payment shall be in an amount equal to 22.5% of the
4taxpayer's actual liability for the month or 25% of the
5taxpayer's liability for the same calendar month of the
6preceding year. The amount of the quarter monthly payments
7shall be credited against the final tax liability of the
8taxpayer's return for that month filed under this Section or
9Section 2f, as the case may be. Once applicable, the
10requirement of the making of quarter monthly payments to the
11Department pursuant to this paragraph shall continue until the
12taxpayer's average monthly prepaid tax collections during the
13preceding 4 complete calendar quarters (excluding the month of
14highest liability and the month of lowest liability) is less
15than $19,000 or until such taxpayer's average monthly
16liability to the Department as computed for each calendar
17quarter of the 4 preceding complete calendar quarters is less
18than $20,000. If any such quarter monthly payment is not paid
19at the time or in the amount required, the taxpayer shall be
20liable for penalties and interest on such difference, except
21insofar as the taxpayer has previously made payments for that
22month in excess of the minimum payments previously due.
23    If any payment provided for in this Section exceeds the
24taxpayer's liabilities under this Act, the Use Tax Act, the
25Service Occupation Tax Act and the Service Use Tax Act, as
26shown on an original monthly return, the Department shall, if

 

 

10200HB1539sam001- 611 -LRB102 03555 HLH 39048 a

1requested by the taxpayer, issue to the taxpayer a credit
2memorandum no later than 30 days after the date of payment. The
3credit evidenced by such credit memorandum may be assigned by
4the taxpayer to a similar taxpayer under this Act, the Use Tax
5Act, the Service Occupation Tax Act or the Service Use Tax Act,
6in accordance with reasonable rules and regulations to be
7prescribed by the Department. If no such request is made, the
8taxpayer may credit such excess payment against tax liability
9subsequently to be remitted to the Department under this Act,
10the Use Tax Act, the Service Occupation Tax Act or the Service
11Use Tax Act, in accordance with reasonable rules and
12regulations prescribed by the Department. If the Department
13subsequently determined that all or any part of the credit
14taken was not actually due to the taxpayer, the taxpayer's
152.1% and 1.75% vendor's discount shall be reduced by 2.1% or
161.75% of the difference between the credit taken and that
17actually due, and that taxpayer shall be liable for penalties
18and interest on such difference.
19    If a retailer of motor fuel is entitled to a credit under
20Section 2d of this Act which exceeds the taxpayer's liability
21to the Department under this Act for the month for which the
22taxpayer is filing a return, the Department shall issue the
23taxpayer a credit memorandum for the excess.
24    Beginning January 1, 1990, each month the Department shall
25pay into the Local Government Tax Fund, a special fund in the
26State treasury which is hereby created, the net revenue

 

 

10200HB1539sam001- 612 -LRB102 03555 HLH 39048 a

1realized for the preceding month from the 1% tax imposed under
2this Act.
3    Beginning January 1, 1990, each month the Department shall
4pay into the County and Mass Transit District Fund, a special
5fund in the State treasury which is hereby created, 4% of the
6net revenue realized for the preceding month from the 6.25%
7general rate other than aviation fuel sold on or after
8December 1, 2019. This exception for aviation fuel only
9applies for so long as the revenue use requirements of 49
10U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
11    Beginning August 1, 2000, each month the Department shall
12pay into the County and Mass Transit District Fund 20% of the
13net revenue realized for the preceding month from the 1.25%
14rate on the selling price of motor fuel and gasohol. If, in any
15month, the tax on sales tax holiday items, as defined in
16Section 2-8, is imposed at the rate of 1.25%, then Beginning
17September 1, 2010, each month the Department shall pay into
18the County and Mass Transit District Fund 20% of the net
19revenue realized for that the preceding month from the 1.25%
20rate on the selling price of sales tax holiday items into the
21County and Mass Transit District Fund.
22    Beginning January 1, 1990, each month the Department shall
23pay into the Local Government Tax Fund 16% of the net revenue
24realized for the preceding month from the 6.25% general rate
25on the selling price of tangible personal property other than
26aviation fuel sold on or after December 1, 2019. This

 

 

10200HB1539sam001- 613 -LRB102 03555 HLH 39048 a

1exception for aviation fuel only applies for so long as the
2revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
347133 are binding on the State.
4    For aviation fuel sold on or after December 1, 2019, each
5month the Department shall pay into the State Aviation Program
6Fund 20% of the net revenue realized for the preceding month
7from the 6.25% general rate on the selling price of aviation
8fuel, less an amount estimated by the Department to be
9required for refunds of the 20% portion of the tax on aviation
10fuel under this Act, which amount shall be deposited into the
11Aviation Fuel Sales Tax Refund Fund. The Department shall only
12pay moneys into the State Aviation Program Fund and the
13Aviation Fuel Sales Tax Refund Fund under this Act for so long
14as the revenue use requirements of 49 U.S.C. 47107(b) and 49
15U.S.C. 47133 are binding on the State.
16    Beginning August 1, 2000, each month the Department shall
17pay into the Local Government Tax Fund 80% of the net revenue
18realized for the preceding month from the 1.25% rate on the
19selling price of motor fuel and gasohol. If, in any month, the
20tax on sales tax holiday items, as defined in Section 2-8, is
21imposed at the rate of 1.25%, then Beginning September 1,
222010, each month the Department shall pay into the Local
23Government Tax Fund 80% of the net revenue realized for that
24the preceding month from the 1.25% rate on the selling price of
25sales tax holiday items into the Local Government Tax Fund.
26    Beginning October 1, 2009, each month the Department shall

 

 

10200HB1539sam001- 614 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 615 -LRB102 03555 HLH 39048 a

1equal to the difference between the average monthly claims for
2payment by the fund and the average monthly revenues deposited
3into the fund, excluding payments made pursuant to this
4paragraph.
5    Beginning July 1, 2015, of the remainder of the moneys
6received by the Department under the Use Tax Act, the Service
7Use Tax Act, the Service Occupation Tax Act, and this Act, each
8month the Department shall deposit $500,000 into the State
9Crime Laboratory Fund.
10    Of the remainder of the moneys received by the Department
11pursuant to this Act, (a) 1.75% thereof shall be paid into the
12Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
13and after July 1, 1989, 3.8% thereof shall be paid into the
14Build Illinois Fund; provided, however, that if in any fiscal
15year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
16may be, of the moneys received by the Department and required
17to be paid into the Build Illinois Fund pursuant to this Act,
18Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
19Act, and Section 9 of the Service Occupation Tax Act, such Acts
20being hereinafter called the "Tax Acts" and such aggregate of
212.2% or 3.8%, as the case may be, of moneys being hereinafter
22called the "Tax Act Amount", and (2) the amount transferred to
23the Build Illinois Fund from the State and Local Sales Tax
24Reform Fund shall be less than the Annual Specified Amount (as
25hereinafter defined), an amount equal to the difference shall
26be immediately paid into the Build Illinois Fund from other

 

 

10200HB1539sam001- 616 -LRB102 03555 HLH 39048 a

1moneys received by the Department pursuant to the Tax Acts;
2the "Annual Specified Amount" means the amounts specified
3below for fiscal years 1986 through 1993:
4Fiscal YearAnnual Specified Amount
51986$54,800,000
61987$76,650,000
71988$80,480,000
81989$88,510,000
91990$115,330,000
101991$145,470,000
111992$182,730,000
121993$206,520,000;
13and means the Certified Annual Debt Service Requirement (as
14defined in Section 13 of the Build Illinois Bond Act) or the
15Tax Act Amount, whichever is greater, for fiscal year 1994 and
16each fiscal year thereafter; and further provided, that if on
17the last business day of any month the sum of (1) the Tax Act
18Amount required to be deposited into the Build Illinois Bond
19Account in the Build Illinois Fund during such month and (2)
20the amount transferred to the Build Illinois Fund from the
21State and Local Sales Tax Reform Fund shall have been less than
221/12 of the Annual Specified Amount, an amount equal to the
23difference shall be immediately paid into the Build Illinois
24Fund from other moneys received by the Department pursuant to
25the Tax Acts; and, further provided, that in no event shall the
26payments required under the preceding proviso result in

 

 

10200HB1539sam001- 617 -LRB102 03555 HLH 39048 a

1aggregate payments into the Build Illinois Fund pursuant to
2this clause (b) for any fiscal year in excess of the greater of
3(i) the Tax Act Amount or (ii) the Annual Specified Amount for
4such fiscal year. The amounts payable into the Build Illinois
5Fund under clause (b) of the first sentence in this paragraph
6shall be payable only until such time as the aggregate amount
7on deposit under each trust indenture securing Bonds issued
8and outstanding pursuant to the Build Illinois Bond Act is
9sufficient, taking into account any future investment income,
10to fully provide, in accordance with such indenture, for the
11defeasance of or the payment of the principal of, premium, if
12any, and interest on the Bonds secured by such indenture and on
13any Bonds expected to be issued thereafter and all fees and
14costs payable with respect thereto, all as certified by the
15Director of the Bureau of the Budget (now Governor's Office of
16Management and Budget). If on the last business day of any
17month in which Bonds are outstanding pursuant to the Build
18Illinois Bond Act, the aggregate of moneys deposited in the
19Build Illinois Bond Account in the Build Illinois Fund in such
20month shall be less than the amount required to be transferred
21in such month from the Build Illinois Bond Account to the Build
22Illinois Bond Retirement and Interest Fund pursuant to Section
2313 of the Build Illinois Bond Act, an amount equal to such
24deficiency shall be immediately paid from other moneys
25received by the Department pursuant to the Tax Acts to the
26Build Illinois Fund; provided, however, that any amounts paid

 

 

10200HB1539sam001- 618 -LRB102 03555 HLH 39048 a

1to the Build Illinois Fund in any fiscal year pursuant to this
2sentence shall be deemed to constitute payments pursuant to
3clause (b) of the first sentence of this paragraph and shall
4reduce the amount otherwise payable for such fiscal year
5pursuant to that clause (b). The moneys received by the
6Department pursuant to this Act and required to be deposited
7into the Build Illinois Fund are subject to the pledge, claim
8and charge set forth in Section 12 of the Build Illinois Bond
9Act.
10    Subject to payment of amounts into the Build Illinois Fund
11as provided in the preceding paragraph or in any amendment
12thereto hereafter enacted, the following specified monthly
13installment of the amount requested in the certificate of the
14Chairman of the Metropolitan Pier and Exposition Authority
15provided under Section 8.25f of the State Finance Act, but not
16in excess of sums designated as "Total Deposit", shall be
17deposited in the aggregate from collections under Section 9 of
18the Use Tax Act, Section 9 of the Service Use Tax Act, Section
199 of the Service Occupation Tax Act, and Section 3 of the
20Retailers' Occupation Tax Act into the McCormick Place
21Expansion Project Fund in the specified fiscal years.
22Fiscal YearTotal Deposit
231993         $0
241994 53,000,000
251995 58,000,000
261996 61,000,000

 

 

10200HB1539sam001- 619 -LRB102 03555 HLH 39048 a

11997 64,000,000
21998 68,000,000
31999 71,000,000
42000 75,000,000
52001 80,000,000
62002 93,000,000
72003 99,000,000
82004103,000,000
92005108,000,000
102006113,000,000
112007119,000,000
122008126,000,000
132009132,000,000
142010139,000,000
152011146,000,000
162012153,000,000
172013161,000,000
182014170,000,000
192015179,000,000
202016189,000,000
212017199,000,000
222018210,000,000
232019221,000,000
242020233,000,000
252021300,000,000
262022300,000,000

 

 

10200HB1539sam001- 620 -LRB102 03555 HLH 39048 a

12023300,000,000
22024 300,000,000
32025 300,000,000
42026 300,000,000
52027 375,000,000
62028 375,000,000
72029 375,000,000
82030 375,000,000
92031 375,000,000
102032 375,000,000
112033375,000,000
122034375,000,000
132035375,000,000
142036450,000,000
15and
16each fiscal year
17thereafter that bonds
18are outstanding under
19Section 13.2 of the
20Metropolitan Pier and
21Exposition Authority Act,
22but not after fiscal year 2060.
23    Beginning July 20, 1993 and in each month of each fiscal
24year thereafter, one-eighth of the amount requested in the
25certificate of the Chairman of the Metropolitan Pier and
26Exposition Authority for that fiscal year, less the amount

 

 

10200HB1539sam001- 621 -LRB102 03555 HLH 39048 a

1deposited into the McCormick Place Expansion Project Fund by
2the State Treasurer in the respective month under subsection
3(g) of Section 13 of the Metropolitan Pier and Exposition
4Authority Act, plus cumulative deficiencies in the deposits
5required under this Section for previous months and years,
6shall be deposited into the McCormick Place Expansion Project
7Fund, until the full amount requested for the fiscal year, but
8not in excess of the amount specified above as "Total
9Deposit", has been deposited.
10    Subject to payment of amounts into the Capital Projects
11Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
12and the McCormick Place Expansion Project Fund pursuant to the
13preceding paragraphs or in any amendments thereto hereafter
14enacted, for aviation fuel sold on or after December 1, 2019,
15the Department shall each month deposit into the Aviation Fuel
16Sales Tax Refund Fund an amount estimated by the Department to
17be required for refunds of the 80% portion of the tax on
18aviation fuel under this Act. The Department shall only
19deposit moneys into the Aviation Fuel Sales Tax Refund Fund
20under this paragraph for so long as the revenue use
21requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
22binding on the State.
23    Subject to payment of amounts into the Build Illinois Fund
24and the McCormick Place Expansion Project Fund pursuant to the
25preceding paragraphs or in any amendments thereto hereafter
26enacted, beginning July 1, 1993 and ending on September 30,

 

 

10200HB1539sam001- 622 -LRB102 03555 HLH 39048 a

12013, the Department shall each month pay into the Illinois
2Tax Increment Fund 0.27% of 80% of the net revenue realized for
3the preceding month from the 6.25% general rate on the selling
4price of tangible personal property.
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 with the receipt of the first report of
9taxes paid by an eligible business and continuing for a
1025-year period, the Department shall each month pay into the
11Energy Infrastructure Fund 80% of the net revenue realized
12from the 6.25% general rate on the selling price of
13Illinois-mined coal that was sold to an eligible business. For
14purposes of this paragraph, the term "eligible business" means
15a new electric generating facility certified pursuant to
16Section 605-332 of the Department of Commerce and Economic
17Opportunity Law of the Civil Administrative Code of Illinois.
18    Subject to payment of amounts into the Build Illinois
19Fund, the McCormick Place Expansion Project Fund, the Illinois
20Tax Increment Fund, and the Energy Infrastructure Fund
21pursuant to the preceding paragraphs or in any amendments to
22this Section hereafter enacted, beginning on the first day of
23the first calendar month to occur on or after August 26, 2014
24(the effective date of Public Act 98-1098), each month, from
25the collections made under Section 9 of the Use Tax Act,
26Section 9 of the Service Use Tax Act, Section 9 of the Service

 

 

10200HB1539sam001- 623 -LRB102 03555 HLH 39048 a

1Occupation Tax Act, and Section 3 of the Retailers' Occupation
2Tax Act, the Department shall pay into the Tax Compliance and
3Administration Fund, to be used, subject to appropriation, to
4fund additional auditors and compliance personnel at the
5Department of Revenue, an amount equal to 1/12 of 5% of 80% of
6the cash receipts collected during the preceding fiscal year
7by the Audit Bureau of the Department under the Use Tax Act,
8the Service Use Tax Act, the Service Occupation Tax Act, the
9Retailers' Occupation Tax Act, and associated local occupation
10and use taxes administered by the Department.
11    Subject to payments of amounts into the Build Illinois
12Fund, the McCormick Place Expansion Project Fund, the Illinois
13Tax Increment Fund, the Energy Infrastructure Fund, and the
14Tax Compliance and Administration Fund as provided in this
15Section, beginning on July 1, 2018 the Department shall pay
16each month into the Downstate Public Transportation Fund the
17moneys required to be so paid under Section 2-3 of the
18Downstate Public Transportation Act.
19    Subject to successful execution and delivery of a
20public-private agreement between the public agency and private
21entity and completion of the civic build, beginning on July 1,
222023, of the remainder of the moneys received by the
23Department under the Use Tax Act, the Service Use Tax Act, the
24Service Occupation Tax Act, and this Act, the Department shall
25deposit the following specified deposits in the aggregate from
26collections under the Use Tax Act, the Service Use Tax Act, the

 

 

10200HB1539sam001- 624 -LRB102 03555 HLH 39048 a

1Service Occupation Tax Act, and the Retailers' Occupation Tax
2Act, as required under Section 8.25g of the State Finance Act
3for distribution consistent with the Public-Private
4Partnership for Civic and Transit Infrastructure Project Act.
5The moneys received by the Department pursuant to this Act and
6required to be deposited into the Civic and Transit
7Infrastructure Fund are subject to the pledge, claim and
8charge set forth in Section 25-55 of the Public-Private
9Partnership for Civic and Transit Infrastructure Project Act.
10As used in this paragraph, "civic build", "private entity",
11"public-private agreement", and "public agency" have the
12meanings provided in Section 25-10 of the Public-Private
13Partnership for Civic and Transit Infrastructure Project Act.
14        Fiscal Year.............................Total Deposit
15        2024.....................................$200,000,000
16        2025....................................$206,000,000
17        2026....................................$212,200,000
18        2027....................................$218,500,000
19        2028....................................$225,100,000
20        2029....................................$288,700,000
21        2030....................................$298,900,000
22        2031....................................$309,300,000
23        2032....................................$320,100,000
24        2033....................................$331,200,000
25        2034....................................$341,200,000
26        2035....................................$351,400,000

 

 

10200HB1539sam001- 625 -LRB102 03555 HLH 39048 a

1        2036....................................$361,900,000
2        2037....................................$372,800,000
3        2038....................................$384,000,000
4        2039....................................$395,500,000
5        2040....................................$407,400,000
6        2041....................................$419,600,000
7        2042....................................$432,200,000
8        2043....................................$445,100,000
9    Beginning July 1, 2021 and until July 1, 2022, subject to
10the payment of amounts into the County and Mass Transit
11District Fund, the Local Government Tax Fund, the Build
12Illinois Fund, the McCormick Place Expansion Project Fund, the
13Illinois Tax Increment Fund, the Energy Infrastructure Fund,
14and the Tax Compliance and Administration Fund as provided in
15this Section, the Department shall pay each month into the
16Road Fund the amount estimated to represent 16% of the net
17revenue realized from the taxes imposed on motor fuel and
18gasohol. Beginning July 1, 2022 and until July 1, 2023,
19subject to the payment of amounts into the County and Mass
20Transit District Fund, the Local Government Tax Fund, the
21Build Illinois Fund, the McCormick Place Expansion Project
22Fund, the Illinois Tax Increment Fund, the Energy
23Infrastructure Fund, and the Tax Compliance and Administration
24Fund as provided in this Section, the Department shall pay
25each month into the Road Fund the amount estimated to
26represent 32% of the net revenue realized from the taxes

 

 

10200HB1539sam001- 626 -LRB102 03555 HLH 39048 a

1imposed on motor fuel and gasohol. Beginning July 1, 2023 and
2until July 1, 2024, subject to the payment of amounts into the
3County and Mass Transit District Fund, the Local Government
4Tax Fund, the Build Illinois Fund, the McCormick Place
5Expansion Project Fund, the Illinois Tax Increment Fund, the
6Energy Infrastructure 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 48% of the net revenue realized from
10the taxes imposed on motor fuel and gasohol. Beginning July 1,
112024 and until July 1, 2025, 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,
15the Energy Infrastructure Fund, and the Tax Compliance and
16Administration Fund as provided in this Section, the
17Department shall pay each month into the Road Fund the amount
18estimated to represent 64% of the net revenue realized from
19the taxes imposed on motor fuel and gasohol. Beginning on July
201, 2025, subject to the payment of amounts into the County and
21Mass Transit District Fund, the Local Government Tax Fund, the
22Build Illinois Fund, the McCormick Place Expansion Project
23Fund, the Illinois Tax Increment Fund, the Energy
24Infrastructure Fund, and the Tax Compliance and Administration
25Fund as provided in this Section, the Department shall pay
26each month into the Road Fund the amount estimated to

 

 

10200HB1539sam001- 627 -LRB102 03555 HLH 39048 a

1represent 80% of the net revenue realized from the taxes
2imposed on motor fuel and gasohol. As used in this paragraph
3"motor fuel" has the meaning given to that term in Section 1.1
4of the Motor Fuel Tax Act, and "gasohol" has the meaning given
5to that term in Section 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
19income tax return. If the total receipts of the business as
20reported in the Federal income tax return do not agree with the
21gross receipts reported to the Department of Revenue for the
22same period, the retailer shall attach to his annual return a
23schedule showing a reconciliation of the 2 amounts and the
24reasons for the difference. The retailer's annual return to
25the Department shall also disclose the cost of goods sold by
26the retailer during the year covered by such return, opening

 

 

10200HB1539sam001- 628 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 629 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 630 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 631 -LRB102 03555 HLH 39048 a

1exhibition or event. Such a finding shall be based on evidence
2that a substantial number of concessionaires or other sellers
3who are not residents of Illinois will be engaging in the
4business of selling tangible personal property at retail at
5the exhibition or event, or other evidence of a significant
6risk of loss of revenue to the State. The Department shall
7notify concessionaires and other sellers affected by the
8imposition of this requirement. In the absence of notification
9by the Department, the concessionaires and other sellers shall
10file their returns as otherwise required in this Section.
11(Source: P.A. 101-10, Article 15, Section 15-25, eff. 6-5-19;
12101-10, Article 25, Section 25-120, eff. 6-5-19; 101-27, eff.
136-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
14101-636, eff. 6-10-20; 102-634, eff. 8-27-21; revised
1512-7-21.)
 
16    Section 65-15. The State Finance Act is amended by
17changing Sections 6z-18 and 6z-20 as follows:
 
18    (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
19    Sec. 6z-18. Local Government Tax Fund. A portion of the
20money paid into the Local Government Tax Fund from sales of
21tangible personal property taxed at the 1% rate under the
22Retailers' Occupation Tax Act and the Service Occupation Tax
23Act, which occurred in municipalities, shall be distributed to
24each municipality based upon the sales which occurred in that

 

 

10200HB1539sam001- 632 -LRB102 03555 HLH 39048 a

1municipality. The remainder shall be distributed to each
2county based upon the sales which occurred in the
3unincorporated area of that county.
4    A portion of the money paid into the Local Government Tax
5Fund from the 6.25% general use tax rate on the selling price
6of tangible personal property which is purchased outside
7Illinois at retail from a retailer and which is titled or
8registered by any agency of this State's government shall be
9distributed to municipalities as provided in this paragraph.
10Each municipality shall receive the amount attributable to
11sales for which Illinois addresses for titling or registration
12purposes are given as being in such municipality. The
13remainder of the money paid into the Local Government Tax Fund
14from such sales shall be distributed to counties. Each county
15shall receive the amount attributable to sales for which
16Illinois addresses for titling or registration purposes are
17given as being located in the unincorporated area of such
18county.
19    A portion of the money paid into the Local Government Tax
20Fund from the 6.25% general rate (and, beginning July 1, 2000
21and through December 31, 2000, the 1.25% rate on motor fuel and
22gasohol, and beginning on August 6, 2010 through August 15,
232010, and beginning again on August 5, 2022 through August 14,
242022, the 1.25% rate on sales tax holiday items) on sales
25subject to taxation under the Retailers' Occupation Tax Act
26and the Service Occupation Tax Act, which occurred in

 

 

10200HB1539sam001- 633 -LRB102 03555 HLH 39048 a

1municipalities, shall be distributed to each municipality,
2based upon the sales which occurred in that municipality. The
3remainder shall be distributed to each county, based upon the
4sales which occurred in the unincorporated area of such
5county.
6    For the purpose of determining allocation to the local
7government unit, a retail sale by a producer of coal or other
8mineral mined in Illinois is a sale at retail at the place
9where the coal or other mineral mined in Illinois is extracted
10from the earth. This paragraph does not apply to coal or other
11mineral when it is delivered or shipped by the seller to the
12purchaser at a point outside Illinois so that the sale is
13exempt under the United States Constitution as a sale in
14interstate or foreign commerce.
15    Whenever the Department determines that a refund of money
16paid into the Local Government Tax Fund should be made to a
17claimant instead of issuing a credit memorandum, the
18Department shall notify the State Comptroller, who shall cause
19the order to be drawn for the amount specified, and to the
20person named, in such notification from the Department. Such
21refund shall be paid by the State Treasurer out of the Local
22Government Tax Fund.
23    As soon as possible after the first day of each month,
24beginning January 1, 2011, upon certification of the
25Department of Revenue, the Comptroller shall order
26transferred, and the Treasurer shall transfer, to the STAR

 

 

10200HB1539sam001- 634 -LRB102 03555 HLH 39048 a

1Bonds Revenue Fund the local sales tax increment, as defined
2in the Innovation Development and Economy Act, collected
3during the second preceding calendar month for sales within a
4STAR bond district and deposited into the Local Government Tax
5Fund, less 3% of that amount, which shall be transferred into
6the Tax Compliance and Administration Fund and shall be used
7by the Department, subject to appropriation, to cover the
8costs of the Department in administering the Innovation
9Development and Economy Act.
10    After the monthly transfer to the STAR Bonds Revenue Fund,
11on or before the 25th day of each calendar month, the
12Department shall prepare and certify to the Comptroller the
13disbursement of stated sums of money to named municipalities
14and counties, the municipalities and counties to be those
15entitled to distribution of taxes or penalties paid to the
16Department during the second preceding calendar month. The
17amount to be paid to each municipality or county shall be the
18amount (not including credit memoranda) collected during the
19second preceding calendar month by the Department and paid
20into the Local Government Tax Fund, plus an amount the
21Department determines is necessary to offset any amounts which
22were erroneously paid to a different taxing body, and not
23including an amount equal to the amount of refunds made during
24the second preceding calendar month by the Department, and not
25including any amount which the Department determines is
26necessary to offset any amounts which are payable to a

 

 

10200HB1539sam001- 635 -LRB102 03555 HLH 39048 a

1different taxing body but were erroneously paid to the
2municipality or county, and not including any amounts that are
3transferred to the STAR Bonds Revenue Fund. Within 10 days
4after receipt, by the Comptroller, of the disbursement
5certification to the municipalities and counties, provided for
6in this Section to be given to the Comptroller by the
7Department, the Comptroller shall cause the orders to be drawn
8for the respective amounts in accordance with the directions
9contained in such certification.
10    When certifying the amount of monthly disbursement to a
11municipality or county under this Section, the Department
12shall increase or decrease that amount by an amount necessary
13to offset any misallocation of previous disbursements. The
14offset amount shall be the amount erroneously disbursed within
15the 6 months preceding the time a misallocation is discovered.
16    The provisions directing the distributions from the
17special fund in the State Treasury provided for in this
18Section shall constitute an irrevocable and continuing
19appropriation of all amounts as provided herein. The State
20Treasurer and State Comptroller are hereby authorized to make
21distributions as provided in this Section.
22    In construing any development, redevelopment, annexation,
23preannexation or other lawful agreement in effect prior to
24September 1, 1990, which describes or refers to receipts from
25a county or municipal retailers' occupation tax, use tax or
26service occupation tax which now cannot be imposed, such

 

 

10200HB1539sam001- 636 -LRB102 03555 HLH 39048 a

1description or reference shall be deemed to include the
2replacement revenue for such abolished taxes, distributed from
3the Local Government Tax Fund.
4    As soon as possible after the effective date of this
5amendatory Act of the 98th General Assembly, the State
6Comptroller shall order and the State Treasurer shall transfer
7$6,600,000 from the Local Government Tax Fund to the Illinois
8State Medical Disciplinary Fund.
9(Source: P.A. 100-1171, eff. 1-4-19.)
 
10    (30 ILCS 105/6z-20)  (from Ch. 127, par. 142z-20)
11    Sec. 6z-20. County and Mass Transit District Fund. Of the
12money received from the 6.25% general rate (and, beginning
13July 1, 2000 and through December 31, 2000, the 1.25% rate on
14motor fuel and gasohol, and beginning on August 6, 2010
15through August 15, 2010, and beginning again on August 5, 2022
16through August 14, 2022, the 1.25% rate on sales tax holiday
17items) on sales subject to taxation under the Retailers'
18Occupation Tax Act and Service Occupation Tax Act and paid
19into the County and Mass Transit District Fund, distribution
20to the Regional Transportation Authority tax fund, created
21pursuant to Section 4.03 of the Regional Transportation
22Authority Act, for deposit therein shall be made based upon
23the retail sales occurring in a county having more than
243,000,000 inhabitants. The remainder shall be distributed to
25each county having 3,000,000 or fewer inhabitants based upon

 

 

10200HB1539sam001- 637 -LRB102 03555 HLH 39048 a

1the retail sales occurring in each such county.
2    For the purpose of determining allocation to the local
3government unit, a retail sale by a producer of coal or other
4mineral mined in Illinois is a sale at retail at the place
5where the coal or other mineral mined in Illinois is extracted
6from the earth. This paragraph does not apply to coal or other
7mineral when it is delivered or shipped by the seller to the
8purchaser at a point outside Illinois so that the sale is
9exempt under the United States Constitution as a sale in
10interstate or foreign commerce.
11    Of the money received from the 6.25% general use tax rate
12on tangible personal property which is purchased outside
13Illinois at retail from a retailer and which is titled or
14registered by any agency of this State's government and paid
15into the County and Mass Transit District Fund, the amount for
16which Illinois addresses for titling or registration purposes
17are given as being in each county having more than 3,000,000
18inhabitants shall be distributed into the Regional
19Transportation Authority tax fund, created pursuant to Section
204.03 of the Regional Transportation Authority Act. The
21remainder of the money paid from such sales shall be
22distributed to each county based on sales for which Illinois
23addresses for titling or registration purposes are given as
24being located in the county. Any money paid into the Regional
25Transportation Authority Occupation and Use Tax Replacement
26Fund from the County and Mass Transit District Fund prior to

 

 

10200HB1539sam001- 638 -LRB102 03555 HLH 39048 a

1January 14, 1991, which has not been paid to the Authority
2prior to that date, shall be transferred to the Regional
3Transportation Authority tax fund.
4    Whenever the Department determines that a refund of money
5paid into the County and Mass Transit District Fund should be
6made to a claimant instead of issuing a credit memorandum, the
7Department shall notify the State Comptroller, who shall cause
8the order to be drawn for the amount specified, and to the
9person named, in such notification from the Department. Such
10refund shall be paid by the State Treasurer out of the County
11and Mass Transit District Fund.
12    As soon as possible after the first day of each month,
13beginning January 1, 2011, upon certification of the
14Department of Revenue, the Comptroller shall order
15transferred, and the Treasurer shall transfer, to the STAR
16Bonds Revenue Fund the local sales tax increment, as defined
17in the Innovation Development and Economy Act, collected
18during the second preceding calendar month for sales within a
19STAR bond district and deposited into the County and Mass
20Transit District Fund, less 3% of that amount, which shall be
21transferred into the Tax Compliance and Administration Fund
22and shall be used by the Department, subject to appropriation,
23to cover the costs of the Department in administering the
24Innovation Development and Economy Act.
25    After the monthly transfer to the STAR Bonds Revenue Fund,
26on or before the 25th day of each calendar month, the

 

 

10200HB1539sam001- 639 -LRB102 03555 HLH 39048 a

1Department shall prepare and certify to the Comptroller the
2disbursement of stated sums of money to the Regional
3Transportation Authority and to named counties, the counties
4to be those entitled to distribution, as hereinabove provided,
5of taxes or penalties paid to the Department during the second
6preceding calendar month. The amount to be paid to the
7Regional Transportation Authority and each county having
83,000,000 or fewer inhabitants shall be the amount (not
9including credit memoranda) collected during the second
10preceding calendar month by the Department and paid into the
11County and Mass Transit District Fund, plus an amount the
12Department determines is necessary to offset any amounts which
13were erroneously paid to a different taxing body, and not
14including an amount equal to the amount of refunds made during
15the second preceding calendar month by the Department, and not
16including any amount which the Department determines is
17necessary to offset any amounts which were payable to a
18different taxing body but were erroneously paid to the
19Regional Transportation Authority or county, and not including
20any amounts that are transferred to the STAR Bonds Revenue
21Fund, less 1.5% of the amount to be paid to the Regional
22Transportation Authority, which shall be transferred into the
23Tax Compliance and Administration Fund. The Department, at the
24time of each monthly disbursement to the Regional
25Transportation Authority, shall prepare and certify to the
26State Comptroller the amount to be transferred into the Tax

 

 

10200HB1539sam001- 640 -LRB102 03555 HLH 39048 a

1Compliance and Administration Fund under this Section. Within
210 days after receipt, by the Comptroller, of the disbursement
3certification to the Regional Transportation Authority,
4counties, and the Tax Compliance and Administration Fund
5provided for in this Section to be given to the Comptroller by
6the Department, the Comptroller shall cause the orders to be
7drawn for the respective amounts in accordance with the
8directions contained in such certification.
9    When certifying the amount of a monthly disbursement to
10the Regional Transportation Authority or to a county under
11this Section, the Department shall increase or decrease that
12amount by an amount necessary to offset any misallocation of
13previous disbursements. The offset amount shall be the amount
14erroneously disbursed within the 6 months preceding the time a
15misallocation is discovered.
16    The provisions directing the distributions from the
17special fund in the State Treasury provided for in this
18Section and from the Regional Transportation Authority tax
19fund created by Section 4.03 of the Regional Transportation
20Authority Act shall constitute an irrevocable and continuing
21appropriation of all amounts as provided herein. The State
22Treasurer and State Comptroller are hereby authorized to make
23distributions as provided in this Section.
24    In construing any development, redevelopment, annexation,
25preannexation or other lawful agreement in effect prior to
26September 1, 1990, which describes or refers to receipts from

 

 

10200HB1539sam001- 641 -LRB102 03555 HLH 39048 a

1a county or municipal retailers' occupation tax, use tax or
2service occupation tax which now cannot be imposed, such
3description or reference shall be deemed to include the
4replacement revenue for such abolished taxes, distributed from
5the County and Mass Transit District Fund or Local Government
6Distributive Fund, as the case may be.
7(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
 
8
ARTICLE 70. BREAST PUMPS

 
9    Section 70-5. The Use Tax Act is amended by changing
10Section 3-5 as follows:
 
11    (35 ILCS 105/3-5)
12    Sec. 3-5. Exemptions. Use of the following tangible
13personal property is exempt from the tax imposed by this Act:
14    (1) Personal property purchased from a corporation,
15society, association, foundation, institution, or
16organization, other than a limited liability company, that is
17organized and operated as a not-for-profit service enterprise
18for the benefit of persons 65 years of age or older if the
19personal property was not purchased by the enterprise for the
20purpose of resale by the enterprise.
21    (2) Personal property purchased by a not-for-profit
22Illinois county fair association for use in conducting,
23operating, or promoting the county fair.

 

 

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1    (3) Personal property purchased by a not-for-profit arts
2or cultural organization that establishes, by proof required
3by the Department by rule, that it has received an exemption
4under Section 501(c)(3) of the Internal Revenue Code and that
5is organized and operated primarily for the presentation or
6support of arts or cultural programming, activities, or
7services. These organizations include, but are not limited to,
8music and dramatic arts organizations such as symphony
9orchestras and theatrical groups, arts and cultural service
10organizations, local arts councils, visual arts organizations,
11and media arts organizations. On and after July 1, 2001 (the
12effective date of Public Act 92-35), however, an entity
13otherwise eligible for this exemption shall not make tax-free
14purchases unless it has an active identification number issued
15by the Department.
16    (4) Personal property purchased by a governmental body, by
17a corporation, society, association, foundation, or
18institution organized and operated exclusively for charitable,
19religious, or educational purposes, or by a not-for-profit
20corporation, society, association, foundation, institution, or
21organization that has no compensated officers or employees and
22that is organized and operated primarily for the recreation of
23persons 55 years of age or older. A limited liability company
24may qualify for the exemption under this paragraph only if the
25limited liability company is organized and operated
26exclusively for educational purposes. On and after July 1,

 

 

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11987, however, no entity otherwise eligible for this exemption
2shall make tax-free purchases unless it has an active
3exemption identification number issued by the Department.
4    (5) Until July 1, 2003, a passenger car that is a
5replacement vehicle to the extent that the purchase price of
6the car is subject to the Replacement Vehicle Tax.
7    (6) Until July 1, 2003 and beginning again on September 1,
82004 through August 30, 2014, graphic arts machinery and
9equipment, including repair and replacement parts, both new
10and used, and including that manufactured on special order,
11certified by the purchaser to be used primarily for graphic
12arts production, and including machinery and equipment
13purchased for lease. Equipment includes chemicals or chemicals
14acting as catalysts but only if the chemicals or chemicals
15acting as catalysts effect a direct and immediate change upon
16a graphic arts product. Beginning on July 1, 2017, graphic
17arts machinery and equipment is included in the manufacturing
18and assembling machinery and equipment exemption under
19paragraph (18).
20    (7) Farm chemicals.
21    (8) Legal tender, currency, medallions, or gold or silver
22coinage issued by the State of Illinois, the government of the
23United States of America, or the government of any foreign
24country, and bullion.
25    (9) Personal property purchased from a teacher-sponsored
26student organization affiliated with an elementary or

 

 

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

 

 

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1limited to, tractors, harvesters, sprayers, planters, seeders,
2or spreaders. Precision farming equipment includes, but is not
3limited to, soil testing sensors, computers, monitors,
4software, global positioning and mapping systems, and other
5such equipment.
6    Farm machinery and equipment also includes computers,
7sensors, software, and related equipment used primarily in the
8computer-assisted operation of production agriculture
9facilities, equipment, and activities such as, but not limited
10to, the collection, monitoring, and correlation of animal and
11crop data for the purpose of formulating animal diets and
12agricultural chemicals. This item (11) is exempt from the
13provisions of Section 3-90.
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, 2023, 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

 

 

10200HB1539sam001- 653 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 657 -LRB102 03555 HLH 39048 a

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, 2024, 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, but excludes any materials, parts,
12equipment, components, and consumable supplies used in the
13modification, replacement, repair, and maintenance of aircraft
14engines or power plants, whether such engines or power plants
15are installed or uninstalled upon any such aircraft.
16"Consumable supplies" include, but are not limited to,
17adhesive, tape, sandpaper, general purpose lubricants,
18cleaning solution, latex gloves, and protective films. This
19exemption applies only to the use of qualifying tangible
20personal property by persons who modify, refurbish, complete,
21repair, replace, or maintain aircraft and who (i) hold an Air
22Agency Certificate and are empowered to operate an approved
23repair station by the Federal Aviation Administration, (ii)
24have a Class IV Rating, and (iii) conduct operations in
25accordance with Part 145 of the Federal Aviation Regulations.
26The exemption does not include aircraft operated by a

 

 

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1commercial air carrier providing scheduled passenger air
2service pursuant to authority issued under Part 121 or Part
3129 of the Federal Aviation Regulations. The changes made to
4this paragraph (35) by Public Act 98-534 are declarative of
5existing law. It is the intent of the General Assembly that the
6exemption under this paragraph (35) applies continuously from
7January 1, 2010 through December 31, 2024; however, no claim
8for credit or refund is allowed for taxes paid as a result of
9the disallowance of this exemption on or after January 1, 2015
10and prior to the effective date of this amendatory Act of the
11101st General Assembly.
12    (36) Tangible personal property purchased by a
13public-facilities corporation, as described in Section
1411-65-10 of the Illinois Municipal Code, for purposes of
15constructing or furnishing a municipal convention hall, but
16only if the legal title to the municipal convention hall is
17transferred to the municipality without any further
18consideration by or on behalf of the municipality at the time
19of the completion of the municipal convention hall or upon the
20retirement or redemption of any bonds or other debt
21instruments issued by the public-facilities corporation in
22connection with the development of the municipal convention
23hall. This exemption includes existing public-facilities
24corporations as provided in Section 11-65-25 of the Illinois
25Municipal Code. This paragraph is exempt from the provisions
26of Section 3-90.

 

 

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1    (37) Beginning January 1, 2017 and through December 31,
22026, menstrual pads, tampons, and menstrual cups.
3    (38) Merchandise that is subject to the Rental Purchase
4Agreement Occupation and Use Tax. The purchaser must certify
5that the item is purchased to be rented subject to a rental
6purchase agreement, as defined in the Rental Purchase
7Agreement Act, and provide proof of registration under the
8Rental Purchase Agreement Occupation and Use Tax Act. This
9paragraph is exempt from the provisions of Section 3-90.
10    (39) Tangible personal property purchased by a purchaser
11who is exempt from the tax imposed by this Act by operation of
12federal law. This paragraph is exempt from the provisions of
13Section 3-90.
14    (40) Qualified tangible personal property used in the
15construction or operation of a data center that has been
16granted a certificate of exemption by the Department of
17Commerce and Economic Opportunity, whether that tangible
18personal property is purchased by the owner, operator, or
19tenant of the data center or by a contractor or subcontractor
20of the owner, operator, or tenant. Data centers that would
21have qualified for a certificate of exemption prior to January
221, 2020 had Public Act 101-31 been in effect may apply for and
23obtain an exemption for subsequent purchases of computer
24equipment or enabling software purchased or leased to upgrade,
25supplement, or replace computer equipment or enabling software
26purchased or leased in the original investment that would have

 

 

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1qualified.
2    The Department of Commerce and Economic Opportunity shall
3grant a certificate of exemption under this item (40) to
4qualified data centers as defined by Section 605-1025 of the
5Department of Commerce and Economic Opportunity Law of the
6Civil Administrative Code of Illinois.
7    For the purposes of this item (40):
8        "Data center" means a building or a series of
9    buildings rehabilitated or constructed to house working
10    servers in one physical location or multiple sites within
11    the State of Illinois.
12        "Qualified tangible personal property" means:
13    electrical systems and equipment; climate control and
14    chilling equipment and systems; mechanical systems and
15    equipment; monitoring and secure systems; emergency
16    generators; hardware; computers; servers; data storage
17    devices; network connectivity equipment; racks; cabinets;
18    telecommunications cabling infrastructure; raised floor
19    systems; peripheral components or systems; software;
20    mechanical, electrical, or plumbing systems; battery
21    systems; cooling systems and towers; temperature control
22    systems; other cabling; and other data center
23    infrastructure equipment and systems necessary to operate
24    qualified tangible personal property, including fixtures;
25    and component parts of any of the foregoing, including
26    installation, maintenance, repair, refurbishment, and

 

 

10200HB1539sam001- 661 -LRB102 03555 HLH 39048 a

1    replacement of qualified tangible personal property to
2    generate, transform, transmit, distribute, or manage
3    electricity necessary to operate qualified tangible
4    personal property; and all other tangible personal
5    property that is essential to the operations of a computer
6    data center. The term "qualified tangible personal
7    property" also includes building materials physically
8    incorporated in to the qualifying data center. To document
9    the exemption allowed under this Section, the retailer
10    must obtain from the purchaser a copy of the certificate
11    of eligibility issued by the Department of Commerce and
12    Economic Opportunity.
13    This item (40) is exempt from the provisions of Section
143-90.
15    (41) Beginning July 1, 2022, breast pumps, breast pump
16collection and storage supplies, and breast pump kits. This
17item (41) is exempt from the provisions of Section 3-90. As
18used in this item (41):
19        "Breast pump" means an electrically controlled or
20    manually controlled pump device designed or marketed to be
21    used to express milk from a human breast during lactation,
22    including the pump device and any battery, AC adapter, or
23    other power supply unit that is used to power the pump
24    device and is packaged and sold with the pump device at the
25    time of sale.
26        "Breast pump collection and storage supplies" means

 

 

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1    items of tangible personal property designed or marketed
2    to be used in conjunction with a breast pump to collect
3    milk expressed from a human breast and to store collected
4    milk until it is ready for consumption.
5        "Breast pump collection and storage supplies"
6    includes, but is not limited to: breast shields and breast
7    shield connectors; breast pump tubes and tubing adapters;
8    breast pump valves and membranes; backflow protectors and
9    backflow protector adaptors; bottles and bottle caps
10    specific to the operation of the breast pump; and breast
11    milk storage bags.
12        "Breast pump collection and storage supplies" does not
13    include: (1) bottles and bottle caps not specific to the
14    operation of the breast pump; (2) breast pump travel bags
15    and other similar carrying accessories, including ice
16    packs, labels, and other similar products; (3) breast pump
17    cleaning supplies; (4) nursing bras, bra pads, breast
18    shells, and other similar products; and (5) creams,
19    ointments, and other similar products that relieve
20    breastfeeding-related symptoms or conditions of the
21    breasts or nipples, unless sold as part of a breast pump
22    kit that is pre-packaged by the breast pump manufacturer
23    or distributor.
24        "Breast pump kit" means a kit that: (1) contains no
25    more than a breast pump, breast pump collection and
26    storage supplies, a rechargeable battery for operating the

 

 

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1    breast pump, a breastmilk cooler, bottle stands, ice
2    packs, and a breast pump carrying case; and (2) is
3    pre-packaged as a breast pump kit by the breast pump
4    manufacturer or distributor.
5(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
6101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
76-17-21.)
 
8    Section 70-10. The Service Use Tax Act is amended by
9changing Section 3-5 as follows:
 
10    (35 ILCS 110/3-5)
11    Sec. 3-5. Exemptions. Use of the following tangible
12personal property is exempt from the tax imposed by this Act:
13    (1) Personal property purchased from a corporation,
14society, association, foundation, institution, or
15organization, other than a limited liability company, that is
16organized and operated as a not-for-profit service enterprise
17for the benefit of persons 65 years of age or older if the
18personal property was not purchased by the enterprise for the
19purpose of resale by the enterprise.
20    (2) Personal property purchased by a non-profit Illinois
21county fair association for use in conducting, operating, or
22promoting the county fair.
23    (3) Personal property purchased by a not-for-profit arts
24or cultural organization that establishes, by proof required

 

 

10200HB1539sam001- 664 -LRB102 03555 HLH 39048 a

1by the Department by rule, that it has received an exemption
2under Section 501(c)(3) of the Internal Revenue Code and that
3is organized and operated primarily for the presentation or
4support of arts or cultural programming, activities, or
5services. These organizations include, but are not limited to,
6music and dramatic arts organizations such as symphony
7orchestras and theatrical groups, arts and cultural service
8organizations, local arts councils, visual arts organizations,
9and media arts organizations. On and after July 1, 2001 (the
10effective date of Public Act 92-35), however, an entity
11otherwise eligible for this exemption shall not make tax-free
12purchases unless it has an active identification number issued
13by the Department.
14    (4) Legal tender, currency, medallions, or gold or silver
15coinage issued by the State of Illinois, the government of the
16United States of America, or the government of any foreign
17country, and bullion.
18    (5) Until July 1, 2003 and beginning again on September 1,
192004 through August 30, 2014, graphic arts machinery and
20equipment, including repair and replacement parts, both new
21and used, and including that manufactured on special order or
22purchased for lease, certified by the purchaser to be used
23primarily for graphic arts production. Equipment includes
24chemicals or chemicals acting as catalysts but only if the
25chemicals or chemicals acting as catalysts effect a direct and
26immediate change upon a graphic arts product. Beginning on

 

 

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

 

 

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1farming equipment that is installed or purchased to be
2installed on farm machinery and equipment including, but not
3limited to, tractors, harvesters, sprayers, planters, seeders,
4or spreaders. Precision farming equipment includes, but is not
5limited to, soil testing sensors, computers, monitors,
6software, global positioning and mapping systems, and other
7such equipment.
8    Farm machinery and equipment also includes computers,
9sensors, software, and related equipment used primarily in the
10computer-assisted operation of production agriculture
11facilities, equipment, and activities such as, but not limited
12to, the collection, monitoring, and correlation of animal and
13crop data for the purpose of formulating animal diets and
14agricultural chemicals. This item (7) is exempt from the
15provisions of Section 3-75.
16    (8) Until June 30, 2013, fuel and petroleum products sold
17to or used by an air common carrier, certified by the carrier
18to be used for consumption, shipment, or storage in the
19conduct of its business as an air common carrier, for a flight
20destined for or returning from a location or locations outside
21the United States without regard to previous or subsequent
22domestic stopovers.
23    Beginning July 1, 2013, fuel and petroleum products sold
24to or used by an air carrier, certified by the carrier to be
25used for consumption, shipment, or storage in the conduct of
26its business as an air common carrier, for a flight that (i) is

 

 

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

 

 

10200HB1539sam001- 668 -LRB102 03555 HLH 39048 a

1and equipment, including repair and replacement parts, both
2new and used, including that manufactured on special order,
3certified by the purchaser to be used primarily for
4photoprocessing, and including photoprocessing machinery and
5equipment purchased for lease.
6    (12) Until July 1, 2023, coal and aggregate exploration,
7mining, off-highway hauling, processing, maintenance, and
8reclamation equipment, including replacement parts and
9equipment, and including equipment purchased for lease, but
10excluding motor vehicles required to be registered under the
11Illinois Vehicle Code. The changes made to this Section by
12Public Act 97-767 apply on and after July 1, 2003, but no claim
13for credit or refund is allowed on or after August 16, 2013
14(the effective date of Public Act 98-456) for such taxes paid
15during the period beginning July 1, 2003 and ending on August
1616, 2013 (the effective date of Public Act 98-456).
17    (13) Semen used for artificial insemination of livestock
18for direct agricultural production.
19    (14) Horses, or interests in horses, registered with and
20meeting the requirements of any of the Arabian Horse Club
21Registry of America, Appaloosa Horse Club, American Quarter
22Horse Association, United States Trotting Association, or
23Jockey Club, as appropriate, used for purposes of breeding or
24racing for prizes. This item (14) is exempt from the
25provisions of Section 3-75, and the exemption provided for
26under this item (14) applies for all periods beginning May 30,

 

 

10200HB1539sam001- 669 -LRB102 03555 HLH 39048 a

11995, but no claim for credit or refund is allowed on or after
2January 1, 2008 (the effective date of Public Act 95-88) for
3such taxes paid during the period beginning May 30, 2000 and
4ending on January 1, 2008 (the effective date of Public Act
595-88).
6    (15) Computers and communications equipment utilized for
7any hospital purpose and equipment used in the diagnosis,
8analysis, or treatment of hospital patients purchased by a
9lessor who leases the equipment, under a lease of one year or
10longer executed or in effect at the time the lessor would
11otherwise be subject to the tax imposed by this Act, 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. If the equipment is leased
15in a manner that does not qualify for this exemption or is used
16in any other non-exempt manner, the lessor shall be liable for
17the tax imposed under this Act or the 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 Use Tax Act, as the case may be, if the tax has not
23been paid by the lessor. If a lessor improperly collects any
24such amount from the lessee, the lessee shall have a legal
25right to claim a refund of that amount from the lessor. If,
26however, that amount is not refunded to the lessee for any

 

 

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

 

 

10200HB1539sam001- 671 -LRB102 03555 HLH 39048 a

1disaster area in Illinois or bordering Illinois by a
2manufacturer or retailer that is registered in this State to a
3corporation, society, association, foundation, or institution
4that has been issued a sales tax exemption identification
5number by the Department that assists victims of the disaster
6who reside within the declared disaster area.
7    (18) Beginning with taxable years ending on or after
8December 31, 1995 and ending with taxable years ending on or
9before December 31, 2004, personal property that is used in
10the performance of infrastructure repairs in this State,
11including but not limited to municipal roads and streets,
12access roads, bridges, sidewalks, waste disposal systems,
13water and sewer line extensions, water distribution and
14purification facilities, storm water drainage and retention
15facilities, and sewage treatment facilities, resulting from a
16State or federally declared disaster in Illinois or bordering
17Illinois when such repairs are initiated on facilities located
18in the declared disaster area within 6 months after the
19disaster.
20    (19) Beginning July 1, 1999, game or game birds purchased
21at a "game breeding and hunting preserve area" as that term is
22used in the Wildlife Code. This paragraph is exempt from the
23provisions of Section 3-75.
24    (20) A motor vehicle, as that term is defined in Section
251-146 of the Illinois Vehicle Code, that is donated to a
26corporation, limited liability company, society, association,

 

 

10200HB1539sam001- 672 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 673 -LRB102 03555 HLH 39048 a

1another individual or entity that sold the property for the
2purpose of resale by the fundraising entity and that profits
3from the sale to the fundraising entity. This paragraph is
4exempt from the provisions of Section 3-75.
5    (22) Beginning January 1, 2000 and through December 31,
62001, new or used automatic vending machines that prepare and
7serve hot food and beverages, including coffee, soup, and
8other items, and replacement parts for these machines.
9Beginning January 1, 2002 and through June 30, 2003, machines
10and parts for machines used in commercial, coin-operated
11amusement and vending business if a use or occupation tax is
12paid on the gross receipts derived from the use of the
13commercial, coin-operated amusement and vending machines. This
14paragraph is exempt from the provisions of Section 3-75.
15    (23) Beginning August 23, 2001 and through June 30, 2016,
16food for human consumption that is to be consumed off the
17premises where it is sold (other than alcoholic beverages,
18soft drinks, and food that has been prepared for immediate
19consumption) and prescription and nonprescription medicines,
20drugs, medical appliances, and insulin, urine testing
21materials, syringes, and needles used by diabetics, for human
22use, when purchased for use by a person receiving medical
23assistance under Article V of the Illinois Public Aid Code who
24resides in a licensed long-term care facility, as defined in
25the Nursing Home Care Act, or in a licensed facility as defined
26in the ID/DD Community Care Act, the MC/DD Act, or the

 

 

10200HB1539sam001- 674 -LRB102 03555 HLH 39048 a

1Specialized Mental Health Rehabilitation Act of 2013.
2    (24) Beginning on August 2, 2001 (the effective date of
3Public Act 92-227), computers and communications equipment
4utilized for any hospital purpose and equipment used in the
5diagnosis, analysis, or treatment of hospital patients
6purchased by a lessor who leases the equipment, under a lease
7of one year or longer executed or in effect at the time the
8lessor would otherwise be subject to the tax imposed by this
9Act, to a hospital that has been issued an active tax exemption
10identification number by the Department under Section 1g of
11the Retailers' Occupation Tax Act. If the equipment is leased
12in a manner that does not qualify for this exemption or is used
13in any other nonexempt manner, the lessor shall be liable for
14the tax imposed under this Act or the Use Tax Act, as the case
15may be, based on the fair market value of the property at the
16time the nonqualifying use occurs. No lessor shall collect or
17attempt to collect an amount (however designated) that
18purports to reimburse that lessor for the tax imposed by this
19Act or the Use Tax Act, as the case may be, if the tax has not
20been paid by the lessor. If a lessor improperly collects any
21such amount from the lessee, the lessee shall have a legal
22right to claim a refund of that amount from the lessor. If,
23however, that amount is not refunded to the lessee for any
24reason, the lessor is liable to pay that amount to the
25Department. This paragraph is exempt from the provisions of
26Section 3-75.

 

 

10200HB1539sam001- 675 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 676 -LRB102 03555 HLH 39048 a

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 3-75.
4    (27) Beginning January 1, 2010 and continuing through
5December 31, 2024, 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, but excludes any materials, parts,
12equipment, components, and consumable supplies used in the
13modification, replacement, repair, and maintenance of aircraft
14engines or power plants, whether such engines or power plants
15are installed or uninstalled upon any such aircraft.
16"Consumable supplies" include, but are not limited to,
17adhesive, tape, sandpaper, general purpose lubricants,
18cleaning solution, latex gloves, and protective films. This
19exemption applies only to the use of qualifying tangible
20personal property transferred incident to the modification,
21refurbishment, completion, replacement, repair, or maintenance
22of aircraft by persons who (i) hold an Air Agency Certificate
23and are empowered to operate an approved repair station by the
24Federal Aviation Administration, (ii) have a Class IV Rating,
25and (iii) conduct operations in accordance with Part 145 of
26the Federal Aviation Regulations. The exemption does not

 

 

10200HB1539sam001- 677 -LRB102 03555 HLH 39048 a

1include aircraft operated by a commercial air carrier
2providing scheduled passenger air service pursuant to
3authority issued under Part 121 or Part 129 of the Federal
4Aviation Regulations. The changes made to this paragraph (27)
5by Public Act 98-534 are declarative of existing law. It is the
6intent of the General Assembly that the exemption under this
7paragraph (27) applies continuously from January 1, 2010
8through December 31, 2024; however, no claim for credit or
9refund is allowed for taxes paid as a result of the
10disallowance of this exemption on or after January 1, 2015 and
11prior to the effective date of this amendatory Act of the 101st
12General Assembly.
13    (28) Tangible personal property purchased by a
14public-facilities corporation, as described in Section
1511-65-10 of the Illinois Municipal Code, for purposes of
16constructing or furnishing a municipal convention hall, but
17only if the legal title to the municipal convention hall is
18transferred to the municipality without any further
19consideration by or on behalf of the municipality at the time
20of the completion of the municipal convention hall or upon the
21retirement or redemption of any bonds or other debt
22instruments issued by the public-facilities corporation in
23connection with the development of the municipal convention
24hall. This exemption includes existing public-facilities
25corporations as provided in Section 11-65-25 of the Illinois
26Municipal Code. This paragraph is exempt from the provisions

 

 

10200HB1539sam001- 678 -LRB102 03555 HLH 39048 a

1of Section 3-75.
2    (29) Beginning January 1, 2017 and through December 31,
32026, menstrual pads, tampons, and menstrual cups.
4    (30) Tangible personal property transferred to a purchaser
5who is exempt from the tax imposed by this Act by operation of
6federal law. This paragraph is exempt from the provisions of
7Section 3-75.
8    (31) Qualified tangible personal property used in the
9construction or operation of a data center that has been
10granted a certificate of exemption by the Department of
11Commerce and Economic Opportunity, whether that tangible
12personal property is purchased by the owner, operator, or
13tenant of the data center or by a contractor or subcontractor
14of the owner, operator, or tenant. Data centers that would
15have qualified for a certificate of exemption prior to January
161, 2020 had this amendatory Act of the 101st General Assembly
17been in effect, may apply for and obtain an exemption for
18subsequent purchases of computer equipment or enabling
19software purchased or leased to upgrade, supplement, or
20replace computer equipment or enabling software purchased or
21leased in the original investment that would have qualified.
22    The Department of Commerce and Economic Opportunity shall
23grant a certificate of exemption under this item (31) to
24qualified data centers as defined by Section 605-1025 of the
25Department of Commerce and Economic Opportunity Law of the
26Civil Administrative Code of Illinois.

 

 

10200HB1539sam001- 679 -LRB102 03555 HLH 39048 a

1    For the purposes of this item (31):
2        "Data center" means a building or a series of
3    buildings rehabilitated or constructed to house working
4    servers in one physical location or multiple sites within
5    the State of Illinois.
6        "Qualified tangible personal property" means:
7    electrical systems and equipment; climate control and
8    chilling equipment and systems; mechanical systems and
9    equipment; monitoring and secure systems; emergency
10    generators; hardware; computers; servers; data storage
11    devices; network connectivity equipment; racks; cabinets;
12    telecommunications cabling infrastructure; raised floor
13    systems; peripheral components or systems; software;
14    mechanical, electrical, or plumbing systems; battery
15    systems; cooling systems and towers; temperature control
16    systems; other cabling; and other data center
17    infrastructure equipment and systems necessary to operate
18    qualified tangible personal property, including fixtures;
19    and component parts of any of the foregoing, including
20    installation, maintenance, repair, refurbishment, and
21    replacement of qualified tangible personal property to
22    generate, transform, transmit, distribute, or manage
23    electricity necessary to operate qualified tangible
24    personal property; and all other tangible personal
25    property that is essential to the operations of a computer
26    data center. The term "qualified tangible personal

 

 

10200HB1539sam001- 680 -LRB102 03555 HLH 39048 a

1    property" also includes building materials physically
2    incorporated in to the qualifying data center. To document
3    the exemption allowed under this Section, the retailer
4    must obtain from the purchaser a copy of the certificate
5    of eligibility issued by the Department of Commerce and
6    Economic Opportunity.
7    This item (31) is exempt from the provisions of Section
83-75.
9    (32) Beginning July 1, 2022, breast pumps, breast pump
10collection and storage supplies, and breast pump kits. This
11item (32) is exempt from the provisions of Section 3-75. As
12used in this item (32):
13        "Breast pump" means an electrically controlled or
14    manually controlled pump device designed or marketed to be
15    used to express milk from a human breast during lactation,
16    including the pump device and any battery, AC adapter, or
17    other power supply unit that is used to power the pump
18    device and is packaged and sold with the pump device at the
19    time of sale.
20        "Breast pump collection and storage supplies" means
21    items of tangible personal property designed or marketed
22    to be used in conjunction with a breast pump to collect
23    milk expressed from a human breast and to store collected
24    milk until it is ready for consumption.
25        "Breast pump collection and storage supplies"
26    includes, but is not limited to: breast shields and breast

 

 

10200HB1539sam001- 681 -LRB102 03555 HLH 39048 a

1    shield connectors; breast pump tubes and tubing adapters;
2    breast pump valves and membranes; backflow protectors and
3    backflow protector adaptors; bottles and bottle caps
4    specific to the operation of the breast pump; and breast
5    milk storage bags.
6        "Breast pump collection and storage supplies" does not
7    include: (1) bottles and bottle caps not specific to the
8    operation of the breast pump; (2) breast pump travel bags
9    and other similar carrying accessories, including ice
10    packs, labels, and other similar products; (3) breast pump
11    cleaning supplies; (4) nursing bras, bra pads, breast
12    shells, and other similar products; and (5) creams,
13    ointments, and other similar products that relieve
14    breastfeeding-related symptoms or conditions of the
15    breasts or nipples, unless sold as part of a breast pump
16    kit that is pre-packaged by the breast pump manufacturer
17    or distributor.
18        "Breast pump kit" means a kit that: (1) contains no
19    more than a breast pump, breast pump collection and
20    storage supplies, a rechargeable battery for operating the
21    breast pump, a breastmilk cooler, bottle stands, ice
22    packs, and a breast pump carrying case; and (2) is
23    pre-packaged as a breast pump kit by the breast pump
24    manufacturer or distributor.
25(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
26101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
 

 

 

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1    Section 70-15. The Service Occupation Tax Act is amended
2by changing Section 3-5 as follows:
 
3    (35 ILCS 115/3-5)
4    Sec. 3-5. Exemptions. The following tangible personal
5property is exempt from the tax imposed by this Act:
6    (1) Personal property sold by a corporation, society,
7association, foundation, institution, or organization, other
8than a limited liability company, that is organized and
9operated as a not-for-profit service enterprise for the
10benefit of persons 65 years of age or older if the personal
11property was not purchased by the enterprise for the purpose
12of resale by the enterprise.
13    (2) Personal property purchased by a not-for-profit
14Illinois county fair association for use in conducting,
15operating, or promoting the county fair.
16    (3) Personal property purchased by any 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

 

 

10200HB1539sam001- 683 -LRB102 03555 HLH 39048 a

1organizations, local arts councils, visual arts organizations,
2and media arts organizations. On and after July 1, 2001 (the
3effective date of Public Act 92-35), however, an entity
4otherwise eligible for this exemption shall not make tax-free
5purchases unless it has an active identification number issued
6by the Department.
7    (4) Legal tender, currency, medallions, or gold or silver
8coinage issued by the State of Illinois, the government of the
9United States of America, or the government of any foreign
10country, and bullion.
11    (5) Until July 1, 2003 and beginning again on September 1,
122004 through August 30, 2014, graphic arts machinery and
13equipment, including repair and replacement parts, both new
14and used, and including that manufactured on special order or
15purchased for lease, certified by the purchaser to be used
16primarily for graphic arts production. Equipment includes
17chemicals or chemicals acting as catalysts but only if the
18chemicals or chemicals acting as catalysts effect a direct and
19immediate change upon a graphic arts product. Beginning on
20July 1, 2017, graphic arts machinery and equipment is included
21in the manufacturing and assembling machinery and equipment
22exemption under Section 2 of this Act.
23    (6) Personal property sold by a teacher-sponsored student
24organization affiliated with an elementary or secondary school
25located in Illinois.
26    (7) Farm machinery and equipment, both new and used,

 

 

10200HB1539sam001- 684 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 685 -LRB102 03555 HLH 39048 a

1    Farm machinery and equipment also includes computers,
2sensors, software, and related equipment used primarily in the
3computer-assisted operation of production agriculture
4facilities, equipment, and activities such as, but not limited
5to, the collection, monitoring, and correlation of animal and
6crop data for the purpose of formulating animal diets and
7agricultural chemicals. This item (7) is exempt from the
8provisions of Section 3-55.
9    (8) Until June 30, 2013, fuel and petroleum products sold
10to or used by an air common carrier, certified by the carrier
11to be used for consumption, shipment, or storage in the
12conduct of its business as an air common carrier, for a flight
13destined for or returning from a location or locations outside
14the United States without regard to previous or subsequent
15domestic stopovers.
16    Beginning July 1, 2013, fuel and petroleum products sold
17to or used by an air carrier, certified by the carrier to be
18used for consumption, shipment, or storage in the conduct of
19its business as an air common carrier, for a flight that (i) is
20engaged in foreign trade or is engaged in trade between the
21United States and any of its possessions and (ii) transports
22at least one individual or package for hire from the city of
23origination to the city of final destination on the same
24aircraft, without regard to a change in the flight number of
25that aircraft.
26    (9) Proceeds of mandatory service charges separately

 

 

10200HB1539sam001- 686 -LRB102 03555 HLH 39048 a

1stated on customers' bills for the purchase and consumption of
2food and beverages, to the extent that the proceeds of the
3service charge are in fact turned over as tips or as a
4substitute for tips to the employees who participate directly
5in preparing, serving, hosting or cleaning up the food or
6beverage function with respect to which the service charge is
7imposed.
8    (10) Until July 1, 2003, oil field exploration, drilling,
9and production equipment, including (i) rigs and parts of
10rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
11pipe and tubular goods, including casing and drill strings,
12(iii) pumps and pump-jack units, (iv) storage tanks and flow
13lines, (v) any individual replacement part for oil field
14exploration, drilling, and production equipment, and (vi)
15machinery and equipment purchased for lease; but excluding
16motor vehicles required to be registered under the Illinois
17Vehicle Code.
18    (11) Photoprocessing machinery and equipment, including
19repair and replacement parts, both new and used, including
20that manufactured on special order, certified by the purchaser
21to be used primarily for photoprocessing, and including
22photoprocessing machinery and equipment purchased for lease.
23    (12) Until July 1, 2023, coal and aggregate exploration,
24mining, off-highway hauling, processing, maintenance, and
25reclamation equipment, including replacement parts and
26equipment, and including equipment purchased for lease, but

 

 

10200HB1539sam001- 687 -LRB102 03555 HLH 39048 a

1excluding motor vehicles required to be registered under the
2Illinois Vehicle Code. The changes made to this Section by
3Public Act 97-767 apply on and after July 1, 2003, but no claim
4for credit or refund is allowed on or after August 16, 2013
5(the effective date of Public Act 98-456) for such taxes paid
6during the period beginning July 1, 2003 and ending on August
716, 2013 (the effective date of Public Act 98-456).
8    (13) Beginning January 1, 1992 and through June 30, 2016,
9food for human consumption that is to be consumed off the
10premises where it is sold (other than alcoholic beverages,
11soft drinks and food that has been prepared for immediate
12consumption) and prescription and non-prescription medicines,
13drugs, medical appliances, and insulin, urine testing
14materials, syringes, and needles used by diabetics, for human
15use, when purchased for use by a person receiving medical
16assistance under Article V of the Illinois Public Aid Code who
17resides in a licensed long-term care facility, as defined in
18the Nursing Home Care Act, or in a licensed facility as defined
19in the ID/DD Community Care Act, the MC/DD Act, or the
20Specialized Mental Health Rehabilitation Act of 2013.
21    (14) Semen used for artificial insemination of livestock
22for direct agricultural production.
23    (15) Horses, or interests in horses, registered with and
24meeting the requirements of any of the Arabian Horse Club
25Registry of America, Appaloosa Horse Club, American Quarter
26Horse Association, United States Trotting Association, or

 

 

10200HB1539sam001- 688 -LRB102 03555 HLH 39048 a

1Jockey Club, as appropriate, used for purposes of breeding or
2racing for prizes. This item (15) is exempt from the
3provisions of Section 3-55, and the exemption provided for
4under this item (15) applies for all periods beginning May 30,
51995, but no claim for credit or refund is allowed on or after
6January 1, 2008 (the effective date of Public Act 95-88) for
7such taxes paid during the period beginning May 30, 2000 and
8ending on January 1, 2008 (the effective date of Public Act
995-88).
10    (16) Computers and communications equipment utilized for
11any hospital purpose and equipment used in the diagnosis,
12analysis, or treatment of hospital patients sold to a lessor
13who leases the equipment, under a lease of one year or longer
14executed or in effect at the time of the purchase, to a
15hospital that has been issued an active tax exemption
16identification number by the Department under Section 1g of
17the Retailers' Occupation Tax Act.
18    (17) Personal property sold to a lessor who leases the
19property, under a lease of one year or longer executed or in
20effect at the time of the purchase, to a governmental body that
21has been issued an active tax exemption identification number
22by the Department under Section 1g of the Retailers'
23Occupation Tax Act.
24    (18) 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 donated

 

 

10200HB1539sam001- 689 -LRB102 03555 HLH 39048 a

1for disaster relief to be used in a State or federally declared
2disaster area in Illinois or bordering Illinois by a
3manufacturer or retailer that is registered in this State to a
4corporation, society, association, foundation, or institution
5that has been issued a sales tax exemption identification
6number by the Department that assists victims of the disaster
7who reside within the declared disaster area.
8    (19) Beginning with taxable years ending on or after
9December 31, 1995 and ending with taxable years ending on or
10before December 31, 2004, personal property that is used in
11the performance of infrastructure repairs in this State,
12including but not limited to municipal roads and streets,
13access roads, bridges, sidewalks, waste disposal systems,
14water and sewer line extensions, water distribution and
15purification facilities, storm water drainage and retention
16facilities, and sewage treatment facilities, resulting from a
17State or federally declared disaster in Illinois or bordering
18Illinois when such repairs are initiated on facilities located
19in the declared disaster area within 6 months after the
20disaster.
21    (20) Beginning July 1, 1999, game or game birds sold at a
22"game breeding and hunting preserve area" as that term is used
23in the Wildlife Code. This paragraph is exempt from the
24provisions of Section 3-55.
25    (21) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

10200HB1539sam001- 690 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 691 -LRB102 03555 HLH 39048 a

1entity purchases the personal property sold at the events from
2another individual or entity that sold the property for the
3purpose of resale by the fundraising entity and that profits
4from the sale to the fundraising entity. This paragraph is
5exempt from the provisions of Section 3-55.
6    (23) Beginning January 1, 2000 and through December 31,
72001, new or used automatic vending machines that prepare and
8serve hot food and beverages, including coffee, soup, and
9other items, and replacement parts for these machines.
10Beginning January 1, 2002 and through June 30, 2003, machines
11and parts for machines used in commercial, coin-operated
12amusement and vending business if a use or occupation tax is
13paid on the gross receipts derived from the use of the
14commercial, coin-operated amusement and vending machines. This
15paragraph is exempt from the provisions of Section 3-55.
16    (24) Beginning on August 2, 2001 (the effective date of
17Public Act 92-227), computers and communications equipment
18utilized for any hospital purpose and equipment used in the
19diagnosis, analysis, or treatment of hospital patients sold to
20a lessor who leases the equipment, under a lease of one year or
21longer executed or in effect at the time of the purchase, to a
22hospital that has been issued an active tax exemption
23identification number by the Department under Section 1g of
24the Retailers' Occupation Tax Act. This paragraph is exempt
25from the provisions of Section 3-55.
26    (25) Beginning on August 2, 2001 (the effective date of

 

 

10200HB1539sam001- 692 -LRB102 03555 HLH 39048 a

1Public Act 92-227), personal property sold to a lessor who
2leases the property, under a lease of one year or longer
3executed or in effect at the time of the purchase, to a
4governmental body that has been issued an active tax exemption
5identification number by the Department under Section 1g of
6the Retailers' Occupation Tax Act. This paragraph is exempt
7from the provisions of Section 3-55.
8    (26) Beginning on January 1, 2002 and through June 30,
92016, tangible personal property purchased from an Illinois
10retailer by a taxpayer engaged in centralized purchasing
11activities in Illinois who will, upon receipt of the property
12in Illinois, temporarily store the property in Illinois (i)
13for the purpose of subsequently transporting it outside this
14State for use or consumption thereafter solely outside this
15State or (ii) for the purpose of being processed, fabricated,
16or manufactured into, attached to, or incorporated into other
17tangible personal property to be transported outside this
18State and thereafter used or consumed solely outside this
19State. The Director of Revenue shall, pursuant to rules
20adopted in accordance with the Illinois Administrative
21Procedure Act, issue a permit to any taxpayer in good standing
22with the Department who is eligible for the exemption under
23this paragraph (26). The permit issued under this paragraph
24(26) shall authorize the holder, to the extent and in the
25manner specified in the rules adopted under this Act, to
26purchase tangible personal property from a retailer exempt

 

 

10200HB1539sam001- 693 -LRB102 03555 HLH 39048 a

1from the taxes imposed by this Act. Taxpayers shall maintain
2all necessary books and records to substantiate the use and
3consumption of all such tangible personal property outside of
4the State of Illinois.
5    (27) Beginning January 1, 2008, tangible personal property
6used in the construction or maintenance of a community water
7supply, as defined under Section 3.145 of the Environmental
8Protection Act, that is operated by a not-for-profit
9corporation that holds a valid water supply permit issued
10under Title IV of the Environmental Protection Act. This
11paragraph is exempt from the provisions of Section 3-55.
12    (28) Tangible personal property sold to a
13public-facilities corporation, as described in Section
1411-65-10 of the Illinois Municipal Code, for purposes of
15constructing or furnishing a municipal convention hall, but
16only if the legal title to the municipal convention hall is
17transferred to the municipality without any further
18consideration by or on behalf of the municipality at the time
19of the completion of the municipal convention hall or upon the
20retirement or redemption of any bonds or other debt
21instruments issued by the public-facilities corporation in
22connection with the development of the municipal convention
23hall. This exemption includes existing public-facilities
24corporations as provided in Section 11-65-25 of the Illinois
25Municipal Code. This paragraph is exempt from the provisions
26of Section 3-55.

 

 

10200HB1539sam001- 694 -LRB102 03555 HLH 39048 a

1    (29) Beginning January 1, 2010 and continuing through
2December 31, 2024, materials, parts, equipment, components,
3and furnishings incorporated into or upon an aircraft as part
4of the modification, refurbishment, completion, replacement,
5repair, or maintenance of the aircraft. This exemption
6includes consumable supplies used in the modification,
7refurbishment, completion, replacement, repair, and
8maintenance of aircraft, but excludes any materials, parts,
9equipment, components, and consumable supplies used in the
10modification, replacement, repair, and maintenance of aircraft
11engines or power plants, whether such engines or power plants
12are installed or uninstalled upon any such aircraft.
13"Consumable supplies" include, but are not limited to,
14adhesive, tape, sandpaper, general purpose lubricants,
15cleaning solution, latex gloves, and protective films. This
16exemption applies only to the transfer of qualifying tangible
17personal property incident to the modification, refurbishment,
18completion, replacement, repair, or maintenance of an aircraft
19by persons who (i) hold an Air Agency Certificate and are
20empowered to operate an approved repair station by the Federal
21Aviation Administration, (ii) have a Class IV Rating, and
22(iii) conduct operations in accordance with Part 145 of the
23Federal Aviation Regulations. The exemption does not include
24aircraft operated by a commercial air carrier providing
25scheduled passenger air service pursuant to authority issued
26under Part 121 or Part 129 of the Federal Aviation

 

 

10200HB1539sam001- 695 -LRB102 03555 HLH 39048 a

1Regulations. The changes made to this paragraph (29) by Public
2Act 98-534 are declarative of existing law. It is the intent of
3the General Assembly that the exemption under this paragraph
4(29) applies continuously from January 1, 2010 through
5December 31, 2024; however, no claim for credit or refund is
6allowed for taxes paid as a result of the disallowance of this
7exemption on or after January 1, 2015 and prior to the
8effective date of this amendatory Act of the 101st General
9Assembly.
10    (30) Beginning January 1, 2017 and through December 31,
112026, menstrual pads, tampons, and menstrual cups.
12    (31) Tangible personal property transferred to a purchaser
13who is exempt from tax by operation of federal law. This
14paragraph is exempt from the provisions of Section 3-55.
15    (32) Qualified tangible personal property used in the
16construction or operation of a data center that has been
17granted a certificate of exemption by the Department of
18Commerce and Economic Opportunity, whether that tangible
19personal property is purchased by the owner, operator, or
20tenant of the data center or by a contractor or subcontractor
21of the owner, operator, or tenant. Data centers that would
22have qualified for a certificate of exemption prior to January
231, 2020 had this amendatory Act of the 101st General Assembly
24been in effect, may apply for and obtain an exemption for
25subsequent purchases of computer equipment or enabling
26software purchased or leased to upgrade, supplement, or

 

 

10200HB1539sam001- 696 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 697 -LRB102 03555 HLH 39048 a

1    installation, maintenance, repair, refurbishment, and
2    replacement of qualified tangible personal property to
3    generate, transform, transmit, distribute, or manage
4    electricity necessary to operate qualified tangible
5    personal property; and all other tangible personal
6    property that is essential to the operations of a computer
7    data center. The term "qualified tangible personal
8    property" also includes building materials physically
9    incorporated in to the qualifying data center. To document
10    the exemption allowed under this Section, the retailer
11    must obtain from the purchaser a copy of the certificate
12    of eligibility issued by the Department of Commerce and
13    Economic Opportunity.
14    This item (32) is exempt from the provisions of Section
153-55.
16    (33) Beginning July 1, 2022, breast pumps, breast pump
17collection and storage supplies, and breast pump kits. This
18item (33) is exempt from the provisions of Section 3-55. As
19used in this item (33):
20        "Breast pump" means an electrically controlled or
21    manually controlled pump device designed or marketed to be
22    used to express milk from a human breast during lactation,
23    including the pump device and any battery, AC adapter, or
24    other power supply unit that is used to power the pump
25    device and is packaged and sold with the pump device at the
26    time of sale.

 

 

10200HB1539sam001- 698 -LRB102 03555 HLH 39048 a

1        "Breast pump collection and storage supplies" means
2    items of tangible personal property designed or marketed
3    to be used in conjunction with a breast pump to collect
4    milk expressed from a human breast and to store collected
5    milk until it is ready for consumption.
6        "Breast pump collection and storage supplies"
7    includes, but is not limited to: breast shields and breast
8    shield connectors; breast pump tubes and tubing adapters;
9    breast pump valves and membranes; backflow protectors and
10    backflow protector adaptors; bottles and bottle caps
11    specific to the operation of the breast pump; and breast
12    milk storage bags.
13        "Breast pump collection and storage supplies" does not
14    include: (1) bottles and bottle caps not specific to the
15    operation of the breast pump; (2) breast pump travel bags
16    and other similar carrying accessories, including ice
17    packs, labels, and other similar products; (3) breast pump
18    cleaning supplies; (4) nursing bras, bra pads, breast
19    shells, and other similar products; and (5) creams,
20    ointments, and other similar products that relieve
21    breastfeeding-related symptoms or conditions of the
22    breasts or nipples, unless sold as part of a breast pump
23    kit that is pre-packaged by the breast pump manufacturer
24    or distributor.
25        "Breast pump kit" means a kit that: (1) contains no
26    more than a breast pump, breast pump collection and

 

 

10200HB1539sam001- 699 -LRB102 03555 HLH 39048 a

1    storage supplies, a rechargeable battery for operating the
2    breast pump, a breastmilk cooler, bottle stands, ice
3    packs, and a breast pump carrying case; and (2) is
4    pre-packaged as a breast pump kit by the breast pump
5    manufacturer or distributor.
6(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
7101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
 
8    Section 70-20. The Retailers' Occupation Tax Act is
9amended by changing Section 2-5 as follows:
 
10    (35 ILCS 120/2-5)
11    Sec. 2-5. Exemptions. Gross receipts from proceeds from
12the sale of the following tangible personal property are
13exempt from the tax imposed by this Act:
14        (1) Farm chemicals.
15        (2) Farm machinery and equipment, both new and used,
16    including that manufactured on special order, certified by
17    the purchaser to be used primarily for production
18    agriculture or State or federal agricultural programs,
19    including individual replacement parts for the machinery
20    and equipment, including machinery and equipment purchased
21    for lease, and including implements of husbandry defined
22    in Section 1-130 of the Illinois Vehicle Code, farm
23    machinery and agricultural chemical and fertilizer
24    spreaders, and nurse wagons required to be registered

 

 

10200HB1539sam001- 700 -LRB102 03555 HLH 39048 a

1    under Section 3-809 of the Illinois Vehicle Code, but
2    excluding other motor vehicles required to be registered
3    under the Illinois Vehicle Code. Horticultural polyhouses
4    or hoop houses used for propagating, growing, or
5    overwintering plants shall be considered farm machinery
6    and equipment under this item (2). Agricultural chemical
7    tender tanks and dry boxes shall include units sold
8    separately from a motor vehicle required to be licensed
9    and units sold mounted on a motor vehicle required to be
10    licensed, if the selling price of the tender is separately
11    stated.
12        Farm machinery and equipment shall include precision
13    farming equipment that is installed or purchased to be
14    installed on farm machinery and equipment including, but
15    not limited to, tractors, harvesters, sprayers, planters,
16    seeders, or spreaders. Precision farming equipment
17    includes, but is not limited to, soil testing sensors,
18    computers, monitors, software, global positioning and
19    mapping systems, and other such equipment.
20        Farm machinery and equipment also includes computers,
21    sensors, software, and related equipment used primarily in
22    the computer-assisted operation of production agriculture
23    facilities, equipment, and activities such as, but not
24    limited to, the collection, monitoring, and correlation of
25    animal and crop data for the purpose of formulating animal
26    diets and agricultural chemicals. This item (2) is exempt

 

 

10200HB1539sam001- 701 -LRB102 03555 HLH 39048 a

1    from the provisions of Section 2-70.
2        (3) Until July 1, 2003, distillation machinery and
3    equipment, sold as a unit or kit, assembled or installed
4    by the retailer, certified by the user to be used only for
5    the production of ethyl alcohol that will be used for
6    consumption as motor fuel or as a component of motor fuel
7    for the personal use of the user, and not subject to sale
8    or resale.
9        (4) Until July 1, 2003 and beginning again September
10    1, 2004 through August 30, 2014, graphic arts machinery
11    and equipment, including repair and replacement parts,
12    both new and used, and including that manufactured on
13    special order or purchased for lease, certified by the
14    purchaser to be used primarily for graphic arts
15    production. Equipment includes chemicals or chemicals
16    acting as catalysts but only if the chemicals or chemicals
17    acting as catalysts effect a direct and immediate change
18    upon a graphic arts product. Beginning on July 1, 2017,
19    graphic arts machinery and equipment is included in the
20    manufacturing and assembling machinery and equipment
21    exemption under paragraph (14).
22        (5) A motor vehicle that is used for automobile
23    renting, as defined in the Automobile Renting Occupation
24    and Use Tax Act. This paragraph is exempt from the
25    provisions of Section 2-70.
26        (6) Personal property sold by a teacher-sponsored

 

 

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1    student organization affiliated with an elementary or
2    secondary school located in Illinois.
3        (7) Until July 1, 2003, proceeds of that portion of
4    the selling price of a passenger car the sale of which is
5    subject to the Replacement Vehicle Tax.
6        (8) Personal property sold to an Illinois county fair
7    association for use in conducting, operating, or promoting
8    the county fair.
9        (9) Personal property sold to a not-for-profit arts or
10    cultural organization that establishes, by proof required
11    by the Department by rule, that it has received an
12    exemption under Section 501(c)(3) of the Internal Revenue
13    Code and that is organized and operated primarily for the
14    presentation or support of arts or cultural programming,
15    activities, or services. These organizations include, but
16    are not limited to, music and dramatic arts organizations
17    such as symphony orchestras and theatrical groups, arts
18    and cultural service organizations, local arts councils,
19    visual arts organizations, and media arts organizations.
20    On and after July 1, 2001 (the effective date of Public Act
21    92-35), however, an entity otherwise eligible for this
22    exemption shall not make tax-free purchases unless it has
23    an active identification number issued by the Department.
24        (10) Personal property sold by a corporation, society,
25    association, foundation, institution, or organization,
26    other than a limited liability company, that is organized

 

 

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1    and operated as a not-for-profit service enterprise for
2    the benefit of persons 65 years of age or older if the
3    personal property was not purchased by the enterprise for
4    the purpose of resale by the enterprise.
5        (11) Personal property sold to a governmental body, to
6    a corporation, society, association, foundation, or
7    institution organized and operated exclusively for
8    charitable, religious, or educational purposes, or to a
9    not-for-profit corporation, society, association,
10    foundation, institution, or organization that has no
11    compensated officers or employees and that is organized
12    and operated primarily for the recreation of persons 55
13    years of age or older. A limited liability company may
14    qualify for the exemption under this paragraph only if the
15    limited liability company is organized and operated
16    exclusively for educational purposes. On and after July 1,
17    1987, however, no entity otherwise eligible for this
18    exemption shall make tax-free purchases unless it has an
19    active identification number issued by the Department.
20        (12) (Blank).
21        (12-5) On and after July 1, 2003 and through June 30,
22    2004, motor vehicles of the second division with a gross
23    vehicle weight in excess of 8,000 pounds that are subject
24    to the commercial distribution fee imposed under Section
25    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
26    2004 and through June 30, 2005, the use in this State of

 

 

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1    motor vehicles of the second division: (i) with a gross
2    vehicle weight rating in excess of 8,000 pounds; (ii) that
3    are subject to the commercial distribution fee imposed
4    under Section 3-815.1 of the Illinois Vehicle Code; and
5    (iii) that are primarily used for commercial purposes.
6    Through June 30, 2005, this exemption applies to repair
7    and replacement parts added after the initial purchase of
8    such a motor vehicle if that motor vehicle is used in a
9    manner that would qualify for the rolling stock exemption
10    otherwise provided for in this Act. For purposes of this
11    paragraph, "used for commercial purposes" means the
12    transportation of persons or property in furtherance of
13    any commercial or industrial enterprise whether for-hire
14    or not.
15        (13) Proceeds from sales to owners, lessors, or
16    shippers of tangible personal property that is utilized by
17    interstate carriers for hire for use as rolling stock
18    moving in interstate commerce and equipment operated by a
19    telecommunications provider, licensed as a common carrier
20    by the Federal Communications Commission, which is
21    permanently installed in or affixed to aircraft moving in
22    interstate commerce.
23        (14) Machinery and equipment that will be used by the
24    purchaser, or a lessee of the purchaser, primarily in the
25    process of manufacturing or assembling tangible personal
26    property for wholesale or retail sale or lease, whether

 

 

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1    the sale or lease is made directly by the manufacturer or
2    by some other person, whether the materials used in the
3    process are owned by the manufacturer or some other
4    person, or whether the sale or lease is made apart from or
5    as an incident to the seller's engaging in the service
6    occupation of producing machines, tools, dies, jigs,
7    patterns, gauges, or other similar items of no commercial
8    value on special order for a particular purchaser. The
9    exemption provided by this paragraph (14) does not include
10    machinery and equipment used in (i) the generation of
11    electricity for wholesale or retail sale; (ii) the
12    generation or treatment of natural or artificial gas for
13    wholesale or retail sale that is delivered to customers
14    through pipes, pipelines, or mains; or (iii) the treatment
15    of water for wholesale or retail sale that is delivered to
16    customers through pipes, pipelines, or mains. The
17    provisions of Public Act 98-583 are declaratory of
18    existing law as to the meaning and scope of this
19    exemption. Beginning on July 1, 2017, the exemption
20    provided by this paragraph (14) includes, but is not
21    limited to, graphic arts machinery and equipment, as
22    defined in paragraph (4) of this Section.
23        (15) Proceeds of mandatory service charges separately
24    stated on customers' bills for purchase and consumption of
25    food and beverages, to the extent that the proceeds of the
26    service charge are in fact turned over as tips or as a

 

 

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1    substitute for tips to the employees who participate
2    directly in preparing, serving, hosting or cleaning up the
3    food or beverage function with respect to which the
4    service charge is imposed.
5        (16) Tangible personal property sold to a purchaser if
6    the purchaser is exempt from use tax by operation of
7    federal law. This paragraph is exempt from the provisions
8    of Section 2-70.
9        (17) Tangible personal property sold to a common
10    carrier by rail or motor that receives the physical
11    possession of the property in Illinois and that transports
12    the property, or shares with another common carrier in the
13    transportation of the property, out of Illinois on a
14    standard uniform bill of lading showing the seller of the
15    property as the shipper or consignor of the property to a
16    destination outside Illinois, for use outside Illinois.
17        (18) Legal tender, currency, medallions, or gold or
18    silver coinage issued by the State of Illinois, the
19    government of the United States of America, or the
20    government of any foreign country, and bullion.
21        (19) Until July 1, 2003, oil field exploration,
22    drilling, and production equipment, including (i) rigs and
23    parts of rigs, rotary rigs, cable tool rigs, and workover
24    rigs, (ii) pipe and tubular goods, including casing and
25    drill strings, (iii) pumps and pump-jack units, (iv)
26    storage tanks and flow lines, (v) any individual

 

 

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1    replacement part for oil field exploration, drilling, and
2    production equipment, and (vi) machinery and equipment
3    purchased for lease; but excluding motor vehicles required
4    to be registered under the Illinois Vehicle Code.
5        (20) Photoprocessing machinery and equipment,
6    including repair and replacement parts, both new and used,
7    including that manufactured on special order, certified by
8    the purchaser to be used primarily for photoprocessing,
9    and including photoprocessing machinery and equipment
10    purchased for lease.
11        (21) Until July 1, 2023, coal and aggregate
12    exploration, mining, off-highway hauling, processing,
13    maintenance, and reclamation equipment, including
14    replacement parts and equipment, and including equipment
15    purchased for lease, but excluding motor vehicles required
16    to be registered under the Illinois Vehicle Code. The
17    changes made to this Section by Public Act 97-767 apply on
18    and after July 1, 2003, but no claim for credit or refund
19    is allowed on or after August 16, 2013 (the effective date
20    of Public Act 98-456) for such taxes paid during the
21    period beginning July 1, 2003 and ending on August 16,
22    2013 (the effective date of Public Act 98-456).
23        (22) Until June 30, 2013, fuel and petroleum products
24    sold to or used by an air carrier, certified by the carrier
25    to be used for consumption, shipment, or storage in the
26    conduct of its business as an air common carrier, for a

 

 

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1    flight destined for or returning from a location or
2    locations outside the United States without regard to
3    previous or subsequent domestic stopovers.
4        Beginning July 1, 2013, fuel and petroleum products
5    sold to or used by an air carrier, certified by the carrier
6    to be used for consumption, shipment, or storage in the
7    conduct of its business as an air common carrier, for a
8    flight that (i) is engaged in foreign trade or is engaged
9    in trade between the United States and any of its
10    possessions and (ii) transports at least one individual or
11    package for hire from the city of origination to the city
12    of final destination on the same aircraft, without regard
13    to a change in the flight number of that aircraft.
14        (23) A transaction in which the purchase order is
15    received by a florist who is located outside Illinois, but
16    who has a florist located in Illinois deliver the property
17    to the purchaser or the purchaser's donee in Illinois.
18        (24) Fuel consumed or used in the operation of ships,
19    barges, or vessels that are used primarily in or for the
20    transportation of property or the conveyance of persons
21    for hire on rivers bordering on this State if the fuel is
22    delivered by the seller to the purchaser's barge, ship, or
23    vessel while it is afloat upon that bordering river.
24        (25) Except as provided in item (25-5) of this
25    Section, a motor vehicle sold in this State to a
26    nonresident even though the motor vehicle is delivered to

 

 

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1    the nonresident in this State, if the motor vehicle is not
2    to be titled in this State, and if a drive-away permit is
3    issued to the motor vehicle as provided in Section 3-603
4    of the Illinois Vehicle Code or if the nonresident
5    purchaser has vehicle registration plates to transfer to
6    the motor vehicle upon returning to his or her home state.
7    The issuance of the drive-away permit or having the
8    out-of-state registration plates to be transferred is
9    prima facie evidence that the motor vehicle will not be
10    titled in this State.
11        (25-5) The exemption under item (25) does not apply if
12    the state in which the motor vehicle will be titled does
13    not allow a reciprocal exemption for a motor vehicle sold
14    and delivered in that state to an Illinois resident but
15    titled in Illinois. The tax collected under this Act on
16    the sale of a motor vehicle in this State to a resident of
17    another state that does not allow a reciprocal exemption
18    shall be imposed at a rate equal to the state's rate of tax
19    on taxable property in the state in which the purchaser is
20    a resident, except that the tax shall not exceed the tax
21    that would otherwise be imposed under this Act. At the
22    time of the sale, the purchaser shall execute a statement,
23    signed under penalty of perjury, of his or her intent to
24    title the vehicle in the state in which the purchaser is a
25    resident within 30 days after the sale and of the fact of
26    the payment to the State of Illinois of tax in an amount

 

 

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1    equivalent to the state's rate of tax on taxable property
2    in his or her state of residence and shall submit the
3    statement to the appropriate tax collection agency in his
4    or her state of residence. In addition, the retailer must
5    retain a signed copy of the statement in his or her
6    records. Nothing in this item shall be construed to
7    require the removal of the vehicle from this state
8    following the filing of an intent to title the vehicle in
9    the purchaser's state of residence if the purchaser titles
10    the vehicle in his or her state of residence within 30 days
11    after the date of sale. The tax collected under this Act in
12    accordance with this item (25-5) shall be proportionately
13    distributed as if the tax were collected at the 6.25%
14    general rate imposed under this Act.
15        (25-7) Beginning on July 1, 2007, no tax is imposed
16    under this Act on the sale of an aircraft, as defined in
17    Section 3 of the Illinois Aeronautics Act, if all of the
18    following conditions are met:
19            (1) the aircraft leaves this State within 15 days
20        after the later of either the issuance of the final
21        billing for the sale of the aircraft, or the
22        authorized approval for return to service, completion
23        of the maintenance record entry, and completion of the
24        test flight and ground test for inspection, as
25        required by 14 C.F.R. 91.407;
26            (2) the aircraft is not based or registered in

 

 

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1        this State after the sale of the aircraft; and
2            (3) the seller retains in his or her books and
3        records and provides to the Department a signed and
4        dated certification from the purchaser, on a form
5        prescribed by the Department, certifying that the
6        requirements of this item (25-7) are met. The
7        certificate must also include the name and address of
8        the purchaser, the address of the location where the
9        aircraft is to be titled or registered, the address of
10        the primary physical location of the aircraft, and
11        other information that the Department may reasonably
12        require.
13        For purposes of this item (25-7):
14        "Based in this State" means hangared, stored, or
15    otherwise used, excluding post-sale customizations as
16    defined in this Section, for 10 or more days in each
17    12-month period immediately following the date of the sale
18    of the aircraft.
19        "Registered in this State" means an aircraft
20    registered with the Department of Transportation,
21    Aeronautics Division, or titled or registered with the
22    Federal Aviation Administration to an address located in
23    this State.
24        This paragraph (25-7) is exempt from the provisions of
25    Section 2-70.
26        (26) Semen used for artificial insemination of

 

 

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1    livestock for direct agricultural production.
2        (27) Horses, or interests in horses, registered with
3    and meeting the requirements of any of the Arabian Horse
4    Club Registry of America, Appaloosa Horse Club, American
5    Quarter Horse Association, United States Trotting
6    Association, or Jockey Club, as appropriate, used for
7    purposes of breeding or racing for prizes. This item (27)
8    is exempt from the provisions of Section 2-70, and the
9    exemption provided for under this item (27) applies for
10    all periods beginning May 30, 1995, but no claim for
11    credit or refund is allowed on or after January 1, 2008
12    (the effective date of Public Act 95-88) for such taxes
13    paid during the period beginning May 30, 2000 and ending
14    on January 1, 2008 (the effective date of Public Act
15    95-88).
16        (28) Computers and communications equipment utilized
17    for any hospital purpose and equipment used in the
18    diagnosis, analysis, or treatment of hospital patients
19    sold to a lessor who leases the equipment, under a lease of
20    one year or longer executed or in effect at the time of the
21    purchase, to a hospital that has been issued an active tax
22    exemption identification number by the Department under
23    Section 1g of this Act.
24        (29) Personal property sold to a lessor who leases the
25    property, under a lease of one year or longer executed or
26    in effect at the time of the purchase, to a governmental

 

 

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

 

 

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1    declared disaster area within 6 months after the disaster.
2        (32) Beginning July 1, 1999, game or game birds sold
3    at a "game breeding and hunting preserve area" as that
4    term is used in the Wildlife Code. This paragraph is
5    exempt from the provisions of Section 2-70.
6        (33) A motor vehicle, as that term is defined in
7    Section 1-146 of the Illinois Vehicle Code, that is
8    donated to a corporation, limited liability company,
9    society, association, foundation, or institution that is
10    determined by the Department to be organized and operated
11    exclusively for educational purposes. For purposes of this
12    exemption, "a corporation, limited liability company,
13    society, association, foundation, or institution organized
14    and operated exclusively for educational purposes" means
15    all tax-supported public schools, private schools that
16    offer systematic instruction in useful branches of
17    learning by methods common to public schools and that
18    compare favorably in their scope and intensity with the
19    course of study presented in tax-supported schools, and
20    vocational or technical schools or institutes organized
21    and operated exclusively to provide a course of study of
22    not less than 6 weeks duration and designed to prepare
23    individuals to follow a trade or to pursue a manual,
24    technical, mechanical, industrial, business, or commercial
25    occupation.
26        (34) Beginning January 1, 2000, personal property,

 

 

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1    including food, purchased through fundraising events for
2    the benefit of a public or private elementary or secondary
3    school, a group of those schools, or one or more school
4    districts if the events are sponsored by an entity
5    recognized by the school district that consists primarily
6    of volunteers and includes parents and teachers of the
7    school children. This paragraph does not apply to
8    fundraising events (i) for the benefit of private home
9    instruction or (ii) for which the fundraising entity
10    purchases the personal property sold at the events from
11    another individual or entity that sold the property for
12    the purpose of resale by the fundraising entity and that
13    profits from the sale to the fundraising entity. This
14    paragraph is exempt from the provisions of Section 2-70.
15        (35) Beginning January 1, 2000 and through December
16    31, 2001, new or used automatic vending machines that
17    prepare and serve hot food and beverages, including
18    coffee, soup, and other items, and replacement parts for
19    these machines. Beginning January 1, 2002 and through June
20    30, 2003, machines and parts for machines used in
21    commercial, coin-operated amusement and vending business
22    if a use or occupation tax is paid on the gross receipts
23    derived from the use of the commercial, coin-operated
24    amusement and vending machines. This paragraph is exempt
25    from the provisions of Section 2-70.
26        (35-5) Beginning August 23, 2001 and through June 30,

 

 

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1    2016, food for human consumption that is to be consumed
2    off the premises where it is sold (other than alcoholic
3    beverages, soft drinks, and food that has been prepared
4    for immediate consumption) and prescription and
5    nonprescription medicines, drugs, medical appliances, and
6    insulin, urine testing materials, syringes, and needles
7    used by diabetics, for human use, when purchased for use
8    by a person receiving medical assistance under Article V
9    of the Illinois Public Aid Code who resides in a licensed
10    long-term care facility, as defined in the Nursing Home
11    Care Act, or a licensed facility as defined in the ID/DD
12    Community Care Act, the MC/DD Act, or the Specialized
13    Mental Health Rehabilitation Act of 2013.
14        (36) Beginning August 2, 2001, computers and
15    communications equipment utilized for any hospital purpose
16    and equipment used in the diagnosis, analysis, or
17    treatment of hospital patients sold to a lessor who leases
18    the equipment, under a lease of one year or longer
19    executed or in effect at the time of the purchase, to a
20    hospital that has been issued an active tax exemption
21    identification number by the Department under Section 1g
22    of this Act. This paragraph is exempt from the provisions
23    of Section 2-70.
24        (37) Beginning August 2, 2001, personal property sold
25    to a lessor who leases the property, under a lease of one
26    year or longer executed or in effect at the time of the

 

 

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1    purchase, to a governmental body that has been issued an
2    active tax exemption identification number by the
3    Department under Section 1g of this Act. This paragraph is
4    exempt from the provisions of Section 2-70.
5        (38) Beginning on January 1, 2002 and through June 30,
6    2016, tangible personal property purchased from an
7    Illinois retailer by a taxpayer engaged in centralized
8    purchasing activities in Illinois who will, upon receipt
9    of the property in Illinois, temporarily store the
10    property in Illinois (i) for the purpose of subsequently
11    transporting it outside this State for use or consumption
12    thereafter solely outside this State or (ii) for the
13    purpose of being processed, fabricated, or manufactured
14    into, attached to, or incorporated into other tangible
15    personal property to be transported outside this State and
16    thereafter used or consumed solely outside this State. The
17    Director of Revenue shall, pursuant to rules adopted in
18    accordance with the Illinois Administrative Procedure Act,
19    issue a permit to any taxpayer in good standing with the
20    Department who is eligible for the exemption under this
21    paragraph (38). The permit issued under this paragraph
22    (38) shall authorize the holder, to the extent and in the
23    manner specified in the rules adopted under this Act, to
24    purchase tangible personal property from a retailer exempt
25    from the taxes imposed by this Act. Taxpayers shall
26    maintain all necessary books and records to substantiate

 

 

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1    the use and consumption of all such tangible personal
2    property outside of the State of Illinois.
3        (39) Beginning January 1, 2008, tangible personal
4    property used in the construction or maintenance of a
5    community water supply, as defined under Section 3.145 of
6    the Environmental Protection Act, that is operated by a
7    not-for-profit corporation that holds a valid water supply
8    permit issued under Title IV of the Environmental
9    Protection Act. This paragraph is exempt from the
10    provisions of Section 2-70.
11        (40) Beginning January 1, 2010 and continuing through
12    December 31, 2024, materials, parts, equipment,
13    components, and furnishings incorporated into or upon an
14    aircraft as part of the modification, refurbishment,
15    completion, replacement, repair, or maintenance of the
16    aircraft. This exemption includes consumable supplies used
17    in the modification, refurbishment, completion,
18    replacement, repair, and maintenance of aircraft, but
19    excludes any materials, parts, equipment, components, and
20    consumable supplies used in the modification, replacement,
21    repair, and maintenance of aircraft engines or power
22    plants, whether such engines or power plants are installed
23    or uninstalled upon any such aircraft. "Consumable
24    supplies" include, but are not limited to, adhesive, tape,
25    sandpaper, general purpose lubricants, cleaning solution,
26    latex gloves, and protective films. This exemption applies

 

 

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1    only to the sale of qualifying tangible personal property
2    to persons who modify, refurbish, complete, replace, or
3    maintain an aircraft and who (i) hold an Air Agency
4    Certificate and are empowered to operate an approved
5    repair station by the Federal Aviation Administration,
6    (ii) have a Class IV Rating, and (iii) conduct operations
7    in accordance with Part 145 of the Federal Aviation
8    Regulations. The exemption does not include aircraft
9    operated by a commercial air carrier providing scheduled
10    passenger air service pursuant to authority issued under
11    Part 121 or Part 129 of the Federal Aviation Regulations.
12    The changes made to this paragraph (40) by Public Act
13    98-534 are declarative of existing law. It is the intent
14    of the General Assembly that the exemption under this
15    paragraph (40) applies continuously from January 1, 2010
16    through December 31, 2024; however, no claim for credit or
17    refund is allowed for taxes paid as a result of the
18    disallowance of this exemption on or after January 1, 2015
19    and prior to the effective date of this amendatory Act of
20    the 101st General Assembly.
21        (41) Tangible personal property sold to a
22    public-facilities corporation, as described in Section
23    11-65-10 of the Illinois Municipal Code, for purposes of
24    constructing or furnishing a municipal convention hall,
25    but only if the legal title to the municipal convention
26    hall is transferred to the municipality without any

 

 

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1    further consideration by or on behalf of the municipality
2    at the time of the completion of the municipal convention
3    hall or upon the retirement or redemption of any bonds or
4    other debt instruments issued by the public-facilities
5    corporation in connection with the development of the
6    municipal convention hall. This exemption includes
7    existing public-facilities corporations as provided in
8    Section 11-65-25 of the Illinois Municipal Code. This
9    paragraph is exempt from the provisions of Section 2-70.
10        (42) Beginning January 1, 2017 and through December
11    31, 2026, menstrual pads, tampons, and menstrual cups.
12        (43) Merchandise that is subject to the Rental
13    Purchase Agreement Occupation and Use Tax. The purchaser
14    must certify that the item is purchased to be rented
15    subject to a rental purchase agreement, as defined in the
16    Rental Purchase Agreement Act, and provide proof of
17    registration under the Rental Purchase Agreement
18    Occupation and Use Tax Act. This paragraph is exempt from
19    the provisions of Section 2-70.
20        (44) Qualified tangible personal property used in the
21    construction or operation of a data center that has been
22    granted a certificate of exemption by the Department of
23    Commerce and Economic Opportunity, whether that tangible
24    personal property is purchased by the owner, operator, or
25    tenant of the data center or by a contractor or
26    subcontractor of the owner, operator, or tenant. Data

 

 

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1    centers that would have qualified for a certificate of
2    exemption prior to January 1, 2020 had this amendatory Act
3    of the 101st General Assembly been in effect, may apply
4    for and obtain an exemption for subsequent purchases of
5    computer equipment or enabling software purchased or
6    leased to upgrade, supplement, or replace computer
7    equipment or enabling software purchased or leased in the
8    original investment that would have qualified.
9        The Department of Commerce and Economic Opportunity
10    shall grant a certificate of exemption under this item
11    (44) to qualified data centers as defined by Section
12    605-1025 of the Department of Commerce and Economic
13    Opportunity Law of the Civil Administrative Code of
14    Illinois.
15        For the purposes of this item (44):
16            "Data center" means a building or a series of
17        buildings rehabilitated or constructed to house
18        working servers in one physical location or multiple
19        sites within the State of Illinois.
20            "Qualified tangible personal property" means:
21        electrical systems and equipment; climate control and
22        chilling equipment and systems; mechanical systems and
23        equipment; monitoring and secure systems; emergency
24        generators; hardware; computers; servers; data storage
25        devices; network connectivity equipment; racks;
26        cabinets; telecommunications cabling infrastructure;

 

 

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1        raised floor systems; peripheral components or
2        systems; software; mechanical, electrical, or plumbing
3        systems; battery systems; cooling systems and towers;
4        temperature control systems; other cabling; and other
5        data center infrastructure equipment and systems
6        necessary to operate qualified tangible personal
7        property, including fixtures; and component parts of
8        any of the foregoing, including installation,
9        maintenance, repair, refurbishment, and replacement of
10        qualified tangible personal property to generate,
11        transform, transmit, distribute, or manage electricity
12        necessary to operate qualified tangible personal
13        property; and all other tangible personal property
14        that is essential to the operations of a computer data
15        center. The term "qualified tangible personal
16        property" also includes building materials physically
17        incorporated into in to the qualifying data center. To
18        document the exemption allowed under this Section, the
19        retailer must obtain from the purchaser a copy of the
20        certificate of eligibility issued by the Department of
21        Commerce and Economic Opportunity.
22        This item (44) is exempt from the provisions of
23    Section 2-70.
24        (45) Beginning January 1, 2020 and through December
25    31, 2020, sales of tangible personal property made by a
26    marketplace seller over a marketplace for which tax is due

 

 

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1    under this Act but for which use tax has been collected and
2    remitted to the Department by a marketplace facilitator
3    under Section 2d of the Use Tax Act are exempt from tax
4    under this Act. A marketplace seller claiming this
5    exemption shall maintain books and records demonstrating
6    that the use tax on such sales has been collected and
7    remitted by a marketplace facilitator. Marketplace sellers
8    that have properly remitted tax under this Act on such
9    sales may file a claim for credit as provided in Section 6
10    of this Act. No claim is allowed, however, for such taxes
11    for which a credit or refund has been issued to the
12    marketplace facilitator under the Use Tax Act, or for
13    which the marketplace facilitator has filed a claim for
14    credit or refund under the Use Tax Act.
15        (46) Beginning July 1, 2022, breast pumps, breast pump
16    collection and storage supplies, and breast pump kits.
17    This item (46) is exempt from the provisions of Section
18    2-70. As used in this item (46):
19        "Breast pump" means an electrically controlled or
20    manually controlled pump device designed or marketed to be
21    used to express milk from a human breast during lactation,
22    including the pump device and any battery, AC adapter, or
23    other power supply unit that is used to power the pump
24    device and is packaged and sold with the pump device at the
25    time of sale.
26        "Breast pump collection and storage supplies" means

 

 

10200HB1539sam001- 724 -LRB102 03555 HLH 39048 a

1    items of tangible personal property designed or marketed
2    to be used in conjunction with a breast pump to collect
3    milk expressed from a human breast and to store collected
4    milk until it is ready for consumption.
5        "Breast pump collection and storage supplies"
6    includes, but is not limited to: breast shields and breast
7    shield connectors; breast pump tubes and tubing adapters;
8    breast pump valves and membranes; backflow protectors and
9    backflow protector adaptors; bottles and bottle caps
10    specific to the operation of the breast pump; and breast
11    milk storage bags.
12        "Breast pump collection and storage supplies" does not
13    include: (1) bottles and bottle caps not specific to the
14    operation of the breast pump; (2) breast pump travel bags
15    and other similar carrying accessories, including ice
16    packs, labels, and other similar products; (3) breast pump
17    cleaning supplies; (4) nursing bras, bra pads, breast
18    shells, and other similar products; and (5) creams,
19    ointments, and other similar products that relieve
20    breastfeeding-related symptoms or conditions of the
21    breasts or nipples, unless sold as part of a breast pump
22    kit that is pre-packaged by the breast pump manufacturer
23    or distributor.
24        "Breast pump kit" means a kit that: (1) contains no
25    more than a breast pump, breast pump collection and
26    storage supplies, a rechargeable battery for operating the

 

 

10200HB1539sam001- 725 -LRB102 03555 HLH 39048 a

1    breast pump, a breastmilk cooler, bottle stands, ice
2    packs, and a breast pump carrying case; and (2) is
3    pre-packaged as a breast pump kit by the breast pump
4    manufacturer or distributor.
5(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
6101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
78-27-21; revised 11-9-21.)
 
8
ARTICLE 75. USE AND OCCUPATION TAXES-EQUIPMENT

 
9    Section 75-5. The Use Tax Act is amended by changing
10Section 3-5 as follows:
 
11    (35 ILCS 105/3-5)
12    Sec. 3-5. Exemptions. Use of the following tangible
13personal property is exempt from the tax imposed by this Act:
14    (1) Personal property purchased from a corporation,
15society, association, foundation, institution, or
16organization, other than a limited liability company, that is
17organized and operated as a not-for-profit service enterprise
18for the benefit of persons 65 years of age or older if the
19personal property was not purchased by the enterprise for the
20purpose of resale by the enterprise.
21    (2) Personal property purchased by a not-for-profit
22Illinois county fair association for use in conducting,
23operating, or promoting the county fair.

 

 

10200HB1539sam001- 726 -LRB102 03555 HLH 39048 a

1    (3) Personal property purchased by a not-for-profit arts
2or cultural organization that establishes, by proof required
3by the Department by rule, that it has received an exemption
4under Section 501(c)(3) of the Internal Revenue Code and that
5is organized and operated primarily for the presentation or
6support of arts or cultural programming, activities, or
7services. These organizations include, but are not limited to,
8music and dramatic arts organizations such as symphony
9orchestras and theatrical groups, arts and cultural service
10organizations, local arts councils, visual arts organizations,
11and media arts organizations. On and after July 1, 2001 (the
12effective date of Public Act 92-35), however, an entity
13otherwise eligible for this exemption shall not make tax-free
14purchases unless it has an active identification number issued
15by the Department.
16    (4) Personal property purchased by a governmental body, by
17a corporation, society, association, foundation, or
18institution organized and operated exclusively for charitable,
19religious, or educational purposes, or by a not-for-profit
20corporation, society, association, foundation, institution, or
21organization that has no compensated officers or employees and
22that is organized and operated primarily for the recreation of
23persons 55 years of age or older. A limited liability company
24may qualify for the exemption under this paragraph only if the
25limited liability company is organized and operated
26exclusively for educational purposes. On and after July 1,

 

 

10200HB1539sam001- 727 -LRB102 03555 HLH 39048 a

11987, however, no entity otherwise eligible for this exemption
2shall make tax-free purchases unless it has an active
3exemption identification number issued by the Department.
4    (5) Until July 1, 2003, a passenger car that is a
5replacement vehicle to the extent that the purchase price of
6the car is subject to the Replacement Vehicle Tax.
7    (6) Until July 1, 2003 and beginning again on September 1,
82004 through August 30, 2014, graphic arts machinery and
9equipment, including repair and replacement parts, both new
10and used, and including that manufactured on special order,
11certified by the purchaser to be used primarily for graphic
12arts production, and including machinery and equipment
13purchased for lease. Equipment includes chemicals or chemicals
14acting as catalysts but only if the chemicals or chemicals
15acting as catalysts effect a direct and immediate change upon
16a graphic arts product. Beginning on July 1, 2017, graphic
17arts machinery and equipment is included in the manufacturing
18and assembling machinery and equipment exemption under
19paragraph (18).
20    (7) Farm chemicals.
21    (8) Legal tender, currency, medallions, or gold or silver
22coinage issued by the State of Illinois, the government of the
23United States of America, or the government of any foreign
24country, and bullion.
25    (9) Personal property purchased from a teacher-sponsored
26student organization affiliated with an elementary or

 

 

10200HB1539sam001- 728 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 729 -LRB102 03555 HLH 39048 a

1limited to, tractors, harvesters, sprayers, planters, seeders,
2or spreaders. Precision farming equipment includes, but is not
3limited to, soil testing sensors, computers, monitors,
4software, global positioning and mapping systems, and other
5such equipment.
6    Farm machinery and equipment also includes computers,
7sensors, software, and related equipment used primarily in the
8computer-assisted operation of production agriculture
9facilities, equipment, and activities such as, but not limited
10to, the collection, monitoring, and correlation of animal and
11crop data for the purpose of formulating animal diets and
12agricultural chemicals. This item (11) is exempt from the
13provisions of Section 3-90.
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

 

 

10200HB1539sam001- 730 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 731 -LRB102 03555 HLH 39048 a

1photoprocessing machinery and equipment purchased for lease.
2    (16) Until July 1, 2028 July 1, 2023, coal and aggregate
3exploration, mining, off-highway hauling, processing,
4maintenance, and reclamation equipment, including replacement
5parts and equipment, and including equipment purchased for
6lease, but excluding motor vehicles required to be registered
7under the Illinois Vehicle Code. The changes made to this
8Section by Public Act 97-767 apply on and after July 1, 2003,
9but no claim for credit or refund is allowed on or after August
1016, 2013 (the effective date of Public Act 98-456) for such
11taxes paid during the period beginning July 1, 2003 and ending
12on August 16, 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

 

 

10200HB1539sam001- 732 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 733 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 734 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 735 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 736 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 737 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 738 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 739 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 740 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 741 -LRB102 03555 HLH 39048 a

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, 2024, 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, but excludes any materials, parts,
12equipment, components, and consumable supplies used in the
13modification, replacement, repair, and maintenance of aircraft
14engines or power plants, whether such engines or power plants
15are installed or uninstalled upon any such aircraft.
16"Consumable supplies" include, but are not limited to,
17adhesive, tape, sandpaper, general purpose lubricants,
18cleaning solution, latex gloves, and protective films. This
19exemption applies only to the use of qualifying tangible
20personal property by persons who modify, refurbish, complete,
21repair, replace, or maintain aircraft and who (i) hold an Air
22Agency Certificate and are empowered to operate an approved
23repair station by the Federal Aviation Administration, (ii)
24have a Class IV Rating, and (iii) conduct operations in
25accordance with Part 145 of the Federal Aviation Regulations.
26The exemption does not include aircraft operated by a

 

 

10200HB1539sam001- 742 -LRB102 03555 HLH 39048 a

1commercial air carrier providing scheduled passenger air
2service pursuant to authority issued under Part 121 or Part
3129 of the Federal Aviation Regulations. The changes made to
4this paragraph (35) by Public Act 98-534 are declarative of
5existing law. It is the intent of the General Assembly that the
6exemption under this paragraph (35) applies continuously from
7January 1, 2010 through December 31, 2024; however, no claim
8for credit or refund is allowed for taxes paid as a result of
9the disallowance of this exemption on or after January 1, 2015
10and prior to the effective date of this amendatory Act of the
11101st General Assembly.
12    (36) Tangible personal property purchased by a
13public-facilities corporation, as described in Section
1411-65-10 of the Illinois Municipal Code, for purposes of
15constructing or furnishing a municipal convention hall, but
16only if the legal title to the municipal convention hall is
17transferred to the municipality without any further
18consideration by or on behalf of the municipality at the time
19of the completion of the municipal convention hall or upon the
20retirement or redemption of any bonds or other debt
21instruments issued by the public-facilities corporation in
22connection with the development of the municipal convention
23hall. This exemption includes existing public-facilities
24corporations as provided in Section 11-65-25 of the Illinois
25Municipal Code. This paragraph is exempt from the provisions
26of Section 3-90.

 

 

10200HB1539sam001- 743 -LRB102 03555 HLH 39048 a

1    (37) Beginning January 1, 2017 and through December 31,
22026, menstrual pads, tampons, and menstrual cups.
3    (38) Merchandise that is subject to the Rental Purchase
4Agreement Occupation and Use Tax. The purchaser must certify
5that the item is purchased to be rented subject to a rental
6purchase agreement, as defined in the Rental Purchase
7Agreement Act, and provide proof of registration under the
8Rental Purchase Agreement Occupation and Use Tax Act. This
9paragraph is exempt from the provisions of Section 3-90.
10    (39) Tangible personal property purchased by a purchaser
11who is exempt from the tax imposed by this Act by operation of
12federal law. This paragraph is exempt from the provisions of
13Section 3-90.
14    (40) Qualified tangible personal property used in the
15construction or operation of a data center that has been
16granted a certificate of exemption by the Department of
17Commerce and Economic Opportunity, whether that tangible
18personal property is purchased by the owner, operator, or
19tenant of the data center or by a contractor or subcontractor
20of the owner, operator, or tenant. Data centers that would
21have qualified for a certificate of exemption prior to January
221, 2020 had Public Act 101-31 been in effect may apply for and
23obtain an exemption for subsequent purchases of computer
24equipment or enabling software purchased or leased to upgrade,
25supplement, or replace computer equipment or enabling software
26purchased or leased in the original investment that would have

 

 

10200HB1539sam001- 744 -LRB102 03555 HLH 39048 a

1qualified.
2    The Department of Commerce and Economic Opportunity shall
3grant a certificate of exemption under this item (40) to
4qualified data centers as defined by Section 605-1025 of the
5Department of Commerce and Economic Opportunity Law of the
6Civil Administrative Code of Illinois.
7    For the purposes of this item (40):
8        "Data center" means a building or a series of
9    buildings rehabilitated or constructed to house working
10    servers in one physical location or multiple sites within
11    the State of Illinois.
12        "Qualified tangible personal property" means:
13    electrical systems and equipment; climate control and
14    chilling equipment and systems; mechanical systems and
15    equipment; monitoring and secure systems; emergency
16    generators; hardware; computers; servers; data storage
17    devices; network connectivity equipment; racks; cabinets;
18    telecommunications cabling infrastructure; raised floor
19    systems; peripheral components or systems; software;
20    mechanical, electrical, or plumbing systems; battery
21    systems; cooling systems and towers; temperature control
22    systems; other cabling; and other data center
23    infrastructure equipment and systems necessary to operate
24    qualified tangible personal property, including fixtures;
25    and component parts of any of the foregoing, including
26    installation, maintenance, repair, refurbishment, and

 

 

10200HB1539sam001- 745 -LRB102 03555 HLH 39048 a

1    replacement of qualified tangible personal property to
2    generate, transform, transmit, distribute, or manage
3    electricity necessary to operate qualified tangible
4    personal property; and all other tangible personal
5    property that is essential to the operations of a computer
6    data center. The term "qualified tangible personal
7    property" also includes building materials physically
8    incorporated in to the qualifying data center. To document
9    the exemption allowed under this Section, the retailer
10    must obtain from the purchaser a copy of the certificate
11    of eligibility issued by the Department of Commerce and
12    Economic Opportunity.
13    This item (40) is exempt from the provisions of Section
143-90.
15(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
16101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
176-17-21.)
 
18    Section 75-10. The Service Use Tax Act is amended by
19changing Section 3-5 as follows:
 
20    (35 ILCS 110/3-5)
21    Sec. 3-5. Exemptions. Use of the following tangible
22personal property is exempt from the tax imposed by this Act:
23    (1) Personal property purchased from a corporation,
24society, association, foundation, institution, or

 

 

10200HB1539sam001- 746 -LRB102 03555 HLH 39048 a

1organization, other than a limited liability company, that is
2organized and operated as a not-for-profit service enterprise
3for the benefit of persons 65 years of age or older if the
4personal property was not purchased by the enterprise for the
5purpose of resale by the enterprise.
6    (2) Personal property purchased by a non-profit Illinois
7county fair association for use in conducting, operating, or
8promoting the county fair.
9    (3) Personal property purchased by a not-for-profit arts
10or cultural organization that establishes, by proof required
11by the Department by rule, that it has received an exemption
12under Section 501(c)(3) of the Internal Revenue Code and that
13is organized and operated primarily for the presentation or
14support of arts or cultural programming, activities, or
15services. These organizations include, but are not limited to,
16music and dramatic arts organizations such as symphony
17orchestras and theatrical groups, arts and cultural service
18organizations, local arts councils, visual arts organizations,
19and media arts organizations. On and after July 1, 2001 (the
20effective date of Public Act 92-35), however, an entity
21otherwise eligible for this exemption shall not make tax-free
22purchases unless it has an active identification number issued
23by the Department.
24    (4) Legal tender, currency, medallions, or gold or silver
25coinage issued by the State of Illinois, the government of the
26United States of America, or the government of any foreign

 

 

10200HB1539sam001- 747 -LRB102 03555 HLH 39048 a

1country, and bullion.
2    (5) Until July 1, 2003 and beginning again on September 1,
32004 through August 30, 2014, graphic arts machinery and
4equipment, including repair and replacement parts, both new
5and used, and including that manufactured on special order or
6purchased for lease, certified by the purchaser to be used
7primarily for graphic arts production. Equipment includes
8chemicals or chemicals acting as catalysts but only if the
9chemicals or chemicals acting as catalysts effect a direct and
10immediate change upon a graphic arts product. Beginning on
11July 1, 2017, graphic arts machinery and equipment is included
12in the manufacturing and assembling machinery and equipment
13exemption under Section 2 of this Act.
14    (6) Personal property purchased from a teacher-sponsored
15student organization affiliated with an elementary or
16secondary school located in Illinois.
17    (7) Farm machinery and equipment, both new and used,
18including that manufactured on special order, certified by the
19purchaser to be used primarily for production agriculture or
20State or federal agricultural programs, including individual
21replacement parts for the machinery and equipment, including
22machinery and equipment purchased for lease, and including
23implements of husbandry defined in Section 1-130 of the
24Illinois Vehicle Code, farm machinery and agricultural
25chemical and fertilizer spreaders, and nurse wagons required
26to be registered under Section 3-809 of the Illinois Vehicle

 

 

10200HB1539sam001- 748 -LRB102 03555 HLH 39048 a

1Code, but excluding other motor vehicles required to be
2registered under the Illinois Vehicle Code. Horticultural
3polyhouses or hoop houses used for propagating, growing, or
4overwintering plants shall be considered farm machinery and
5equipment under this item (7). Agricultural chemical tender
6tanks and dry boxes shall include units sold separately from a
7motor vehicle required to be licensed and units sold mounted
8on a motor vehicle required to be licensed if the selling price
9of the tender is separately stated.
10    Farm machinery and equipment shall include precision
11farming equipment that is installed or purchased to be
12installed on farm machinery and equipment including, but not
13limited to, tractors, harvesters, sprayers, planters, seeders,
14or spreaders. Precision farming equipment includes, but is not
15limited to, soil testing sensors, computers, monitors,
16software, global positioning and mapping systems, and other
17such equipment.
18    Farm machinery and equipment also includes computers,
19sensors, software, and related equipment used primarily in the
20computer-assisted operation of production agriculture
21facilities, equipment, and activities such as, but not limited
22to, the collection, monitoring, and correlation of animal and
23crop data for the purpose of formulating animal diets and
24agricultural chemicals. This item (7) is exempt from the
25provisions of Section 3-75.
26    (8) Until June 30, 2013, fuel and petroleum products sold

 

 

10200HB1539sam001- 749 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 750 -LRB102 03555 HLH 39048 a

1and production equipment, including (i) rigs and parts of
2rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
3pipe and tubular goods, including casing and drill strings,
4(iii) pumps and pump-jack units, (iv) storage tanks and flow
5lines, (v) any individual replacement part for oil field
6exploration, drilling, and production equipment, and (vi)
7machinery and equipment purchased for lease; but excluding
8motor vehicles required to be registered under the Illinois
9Vehicle Code.
10    (11) Proceeds from the sale of photoprocessing machinery
11and equipment, including repair and replacement parts, both
12new and used, including that manufactured on special order,
13certified by the purchaser to be used primarily for
14photoprocessing, and including photoprocessing machinery and
15equipment purchased for lease.
16    (12) Until July 1, 2028 July 1, 2023, coal and aggregate
17exploration, mining, off-highway hauling, processing,
18maintenance, and reclamation equipment, including replacement
19parts and equipment, and including equipment purchased for
20lease, but excluding motor vehicles required to be registered
21under the Illinois Vehicle Code. The changes made to this
22Section by Public Act 97-767 apply on and after July 1, 2003,
23but no claim for credit or refund is allowed on or after August
2416, 2013 (the effective date of Public Act 98-456) for such
25taxes paid during the period beginning July 1, 2003 and ending
26on August 16, 2013 (the effective date of Public Act 98-456).

 

 

10200HB1539sam001- 751 -LRB102 03555 HLH 39048 a

1    (13) Semen used for artificial insemination of livestock
2for direct agricultural production.
3    (14) Horses, or interests in horses, registered with and
4meeting the requirements of any of the Arabian Horse Club
5Registry of America, Appaloosa Horse Club, American Quarter
6Horse Association, United States Trotting Association, or
7Jockey Club, as appropriate, used for purposes of breeding or
8racing for prizes. This item (14) is exempt from the
9provisions of Section 3-75, and the exemption provided for
10under this item (14) applies for all periods beginning May 30,
111995, but no claim for credit or refund is allowed on or after
12January 1, 2008 (the effective date of Public Act 95-88) for
13such taxes paid during the period beginning May 30, 2000 and
14ending on January 1, 2008 (the effective date of Public Act
1595-88).
16    (15) Computers and communications equipment utilized for
17any hospital purpose and equipment used in the diagnosis,
18analysis, or treatment of hospital patients purchased by a
19lessor who leases the equipment, under a lease of one year or
20longer executed or in effect at the time the lessor would
21otherwise be subject to the tax imposed by this Act, to a
22hospital that has been issued an active tax exemption
23identification number by the Department under Section 1g of
24the Retailers' Occupation Tax Act. If the equipment is leased
25in a manner that does not qualify for this exemption or is used
26in any other non-exempt manner, the lessor shall be liable for

 

 

10200HB1539sam001- 752 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 753 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 754 -LRB102 03555 HLH 39048 a

1Illinois when such repairs are initiated on facilities located
2in the declared disaster area within 6 months after the
3disaster.
4    (19) Beginning July 1, 1999, game or game birds purchased
5at a "game breeding and hunting preserve area" as that term is
6used in the Wildlife Code. This paragraph is exempt from the
7provisions of Section 3-75.
8    (20) A motor vehicle, as that term is defined in Section
91-146 of the Illinois Vehicle Code, that is donated to a
10corporation, limited liability company, society, association,
11foundation, or institution that is determined by the
12Department to be organized and operated exclusively for
13educational purposes. For purposes of this exemption, "a
14corporation, limited liability company, society, association,
15foundation, or institution organized and operated exclusively
16for educational purposes" means all tax-supported public
17schools, private schools that offer systematic instruction in
18useful branches of learning by methods common to public
19schools and that compare favorably in their scope and
20intensity with the course of study presented in tax-supported
21schools, and vocational or technical schools or institutes
22organized and operated exclusively to provide a course of
23study of not less than 6 weeks duration and designed to prepare
24individuals to follow a trade or to pursue a manual,
25technical, mechanical, industrial, business, or commercial
26occupation.

 

 

10200HB1539sam001- 755 -LRB102 03555 HLH 39048 a

1    (21) Beginning January 1, 2000, personal property,
2including food, purchased through fundraising events for the
3benefit of a public or private elementary or secondary school,
4a group of those schools, or one or more school districts if
5the events are sponsored by an entity recognized by the school
6district that consists primarily of volunteers and includes
7parents and teachers of the school children. This paragraph
8does not apply to fundraising events (i) for the benefit of
9private home instruction or (ii) for which the fundraising
10entity purchases the personal property sold at the events from
11another individual or entity that sold the property for the
12purpose of resale by the fundraising entity and that profits
13from the sale to the fundraising entity. This paragraph is
14exempt from the provisions of Section 3-75.
15    (22) Beginning January 1, 2000 and through December 31,
162001, new or used automatic vending machines that prepare and
17serve hot food and beverages, including coffee, soup, and
18other items, and replacement parts for these machines.
19Beginning January 1, 2002 and through June 30, 2003, machines
20and parts for machines used in commercial, coin-operated
21amusement and vending business if a use or occupation tax is
22paid on the gross receipts derived from the use of the
23commercial, coin-operated amusement and vending machines. This
24paragraph is exempt from the provisions of Section 3-75.
25    (23) Beginning August 23, 2001 and through June 30, 2016,
26food for human consumption that is to be consumed off the

 

 

10200HB1539sam001- 756 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 757 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 758 -LRB102 03555 HLH 39048 a

1by the lessor. If a lessor improperly collects any such amount
2from the lessee, the lessee shall have a legal right to claim a
3refund of that amount from the lessor. If, however, that
4amount is not refunded to the lessee for any reason, the lessor
5is liable to pay that amount to the Department. This paragraph
6is exempt from the provisions of Section 3-75.
7    (26) Beginning January 1, 2008, tangible personal property
8used in the construction or maintenance of a community water
9supply, as defined under Section 3.145 of the Environmental
10Protection Act, that is operated by a not-for-profit
11corporation that holds a valid water supply permit issued
12under Title IV of the Environmental Protection Act. This
13paragraph is exempt from the provisions of Section 3-75.
14    (27) Beginning January 1, 2010 and continuing through
15December 31, 2024, materials, parts, equipment, components,
16and furnishings incorporated into or upon an aircraft as part
17of the modification, refurbishment, completion, replacement,
18repair, or maintenance of the aircraft. This exemption
19includes consumable supplies used in the modification,
20refurbishment, completion, replacement, repair, and
21maintenance of aircraft, but excludes any materials, parts,
22equipment, components, and consumable supplies used in the
23modification, replacement, repair, and maintenance of aircraft
24engines or power plants, whether such engines or power plants
25are installed or uninstalled upon any such aircraft.
26"Consumable supplies" include, but are not limited to,

 

 

10200HB1539sam001- 759 -LRB102 03555 HLH 39048 a

1adhesive, tape, sandpaper, general purpose lubricants,
2cleaning solution, latex gloves, and protective films. This
3exemption applies only to the use of qualifying tangible
4personal property transferred incident to the modification,
5refurbishment, completion, replacement, repair, or maintenance
6of aircraft by persons who (i) hold an Air Agency Certificate
7and are empowered to operate an approved repair station by the
8Federal Aviation Administration, (ii) have a Class IV Rating,
9and (iii) conduct operations in accordance with Part 145 of
10the Federal Aviation Regulations. The exemption does not
11include aircraft operated by a commercial air carrier
12providing scheduled passenger air service pursuant to
13authority issued under Part 121 or Part 129 of the Federal
14Aviation Regulations. The changes made to this paragraph (27)
15by Public Act 98-534 are declarative of existing law. It is the
16intent of the General Assembly that the exemption under this
17paragraph (27) applies continuously from January 1, 2010
18through December 31, 2024; however, no claim for credit or
19refund is allowed for taxes paid as a result of the
20disallowance of this exemption on or after January 1, 2015 and
21prior to the effective date of this amendatory Act of the 101st
22General Assembly.
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 this amendatory Act of the 101st General Assembly

 

 

10200HB1539sam001- 761 -LRB102 03555 HLH 39048 a

1been in effect, may apply for and obtain an exemption for
2subsequent purchases of computer equipment or enabling
3software purchased or leased to upgrade, supplement, or
4replace computer equipment or enabling software purchased or
5leased in the original investment that would have qualified.
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

 

 

10200HB1539sam001- 762 -LRB102 03555 HLH 39048 a

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 in to the qualifying data center. To document
13    the exemption allowed under this Section, the retailer
14    must obtain from the purchaser a copy of the certificate
15    of eligibility issued by the Department of Commerce and
16    Economic Opportunity.
17    This item (31) is exempt from the provisions of Section
183-75.
19(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
20101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
 
21    Section 75-15. The Service Occupation Tax Act is amended
22by changing Section 3-5 as follows:
 
23    (35 ILCS 115/3-5)
24    Sec. 3-5. Exemptions. The following tangible personal

 

 

10200HB1539sam001- 763 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 764 -LRB102 03555 HLH 39048 a

1    (4) Legal tender, currency, medallions, or gold or silver
2coinage issued by the State of Illinois, the government of the
3United States of America, or the government of any foreign
4country, and bullion.
5    (5) Until July 1, 2003 and beginning again on September 1,
62004 through August 30, 2014, graphic arts machinery and
7equipment, including repair and replacement parts, both new
8and used, and including that manufactured on special order or
9purchased for lease, certified by the purchaser to be used
10primarily for graphic arts production. Equipment includes
11chemicals or chemicals acting as catalysts but only if the
12chemicals or chemicals acting as catalysts effect a direct and
13immediate change upon a graphic arts product. Beginning on
14July 1, 2017, graphic arts machinery and equipment is included
15in the manufacturing and assembling machinery and equipment
16exemption under Section 2 of this Act.
17    (6) Personal property sold by a teacher-sponsored student
18organization affiliated with an elementary or secondary school
19located in Illinois.
20    (7) Farm machinery and equipment, both new and used,
21including that manufactured on special order, certified by the
22purchaser to be used primarily for production agriculture or
23State or federal agricultural programs, including individual
24replacement parts for the machinery and equipment, including
25machinery and equipment purchased for lease, and including
26implements of husbandry defined in Section 1-130 of the

 

 

10200HB1539sam001- 765 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 766 -LRB102 03555 HLH 39048 a

1agricultural chemicals. This item (7) is exempt from the
2provisions of Section 3-55.
3    (8) Until June 30, 2013, fuel and petroleum products sold
4to or used by an air common carrier, certified by the carrier
5to be used for consumption, shipment, or storage in the
6conduct of its business as an air common carrier, for a flight
7destined for or returning from a location or locations outside
8the United States without regard to previous or subsequent
9domestic stopovers.
10    Beginning July 1, 2013, fuel and petroleum products sold
11to or used by an air carrier, certified by the carrier to be
12used for consumption, shipment, or storage in the conduct of
13its business as an air common carrier, for a flight that (i) is
14engaged in foreign trade or is engaged in trade between the
15United States and any of its possessions and (ii) transports
16at least one individual or package for hire from the city of
17origination to the city of final destination on the same
18aircraft, without regard to a change in the flight number of
19that aircraft.
20    (9) Proceeds of mandatory service charges separately
21stated on customers' bills for the purchase and consumption of
22food and beverages, to the extent that the proceeds of the
23service charge are in fact turned over as tips or as a
24substitute for tips to the employees who participate directly
25in preparing, serving, hosting or cleaning up the food or
26beverage function with respect to which the service charge is

 

 

10200HB1539sam001- 767 -LRB102 03555 HLH 39048 a

1imposed.
2    (10) Until July 1, 2003, oil field exploration, drilling,
3and production equipment, including (i) rigs and parts of
4rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
5pipe and tubular goods, including casing and drill strings,
6(iii) pumps and pump-jack units, (iv) storage tanks and flow
7lines, (v) any individual replacement part for oil field
8exploration, drilling, and production equipment, and (vi)
9machinery and equipment purchased for lease; but excluding
10motor vehicles required to be registered under the Illinois
11Vehicle Code.
12    (11) Photoprocessing machinery and equipment, including
13repair and replacement parts, both new and used, including
14that manufactured on special order, certified by the purchaser
15to be used primarily for photoprocessing, and including
16photoprocessing machinery and equipment purchased for lease.
17    (12) Until July 1, 2028 July 1, 2023, coal and aggregate
18exploration, mining, off-highway hauling, processing,
19maintenance, and reclamation equipment, including replacement
20parts and equipment, and including equipment purchased for
21lease, but excluding motor vehicles required to be registered
22under the Illinois Vehicle Code. The changes made to this
23Section by Public Act 97-767 apply on and after July 1, 2003,
24but no claim for credit or refund is allowed on or after August
2516, 2013 (the effective date of Public Act 98-456) for such
26taxes paid during the period beginning July 1, 2003 and ending

 

 

10200HB1539sam001- 768 -LRB102 03555 HLH 39048 a

1on August 16, 2013 (the effective date of Public Act 98-456).
2    (13) Beginning January 1, 1992 and through June 30, 2016,
3food for human consumption that is to be consumed off the
4premises where it is sold (other than alcoholic beverages,
5soft drinks and food that has been prepared for immediate
6consumption) and prescription and non-prescription medicines,
7drugs, medical appliances, and insulin, urine testing
8materials, syringes, and needles used by diabetics, for human
9use, when purchased for use by a person receiving medical
10assistance under Article V of the Illinois Public Aid Code who
11resides in a licensed long-term care facility, as defined in
12the Nursing Home Care Act, or in a licensed facility as defined
13in the ID/DD Community Care Act, the MC/DD Act, or the
14Specialized Mental Health Rehabilitation Act of 2013.
15    (14) Semen used for artificial insemination of livestock
16for direct agricultural production.
17    (15) Horses, or interests in horses, registered with and
18meeting the requirements of any of the Arabian Horse Club
19Registry of America, Appaloosa Horse Club, American Quarter
20Horse Association, United States Trotting Association, or
21Jockey Club, as appropriate, used for purposes of breeding or
22racing for prizes. This item (15) is exempt from the
23provisions of Section 3-55, and the exemption provided for
24under this item (15) applies for all periods beginning May 30,
251995, but no claim for credit or refund is allowed on or after
26January 1, 2008 (the effective date of Public Act 95-88) for

 

 

10200HB1539sam001- 769 -LRB102 03555 HLH 39048 a

1such taxes paid during the period beginning May 30, 2000 and
2ending on January 1, 2008 (the effective date of Public Act
395-88).
4    (16) Computers and communications equipment utilized for
5any hospital purpose and equipment used in the diagnosis,
6analysis, or treatment of hospital patients sold to a lessor
7who leases the equipment, under a lease of one year or longer
8executed or in effect at the time of the purchase, to a
9hospital that has been issued an active tax exemption
10identification number by the Department under Section 1g of
11the Retailers' Occupation Tax Act.
12    (17) Personal property sold to a lessor who leases the
13property, under a lease of one year or longer executed or in
14effect at the time of the purchase, to a governmental body that
15has been issued an active tax exemption identification number
16by the Department under Section 1g of the Retailers'
17Occupation Tax Act.
18    (18) Beginning with taxable years ending on or after
19December 31, 1995 and ending with taxable years ending on or
20before December 31, 2004, personal property that is donated
21for disaster relief to be used in a State or federally declared
22disaster area in Illinois or bordering Illinois by a
23manufacturer or retailer that is registered in this State to a
24corporation, society, association, foundation, or institution
25that has been issued a sales tax exemption identification
26number by the Department that assists victims of the disaster

 

 

10200HB1539sam001- 770 -LRB102 03555 HLH 39048 a

1who reside within the declared disaster area.
2    (19) Beginning with taxable years ending on or after
3December 31, 1995 and ending with taxable years ending on or
4before December 31, 2004, personal property that is used in
5the performance of infrastructure repairs in this State,
6including but not limited to municipal roads and streets,
7access roads, bridges, sidewalks, waste disposal systems,
8water and sewer line extensions, water distribution and
9purification facilities, storm water drainage and retention
10facilities, and sewage treatment facilities, resulting from a
11State or federally declared disaster in Illinois or bordering
12Illinois when such repairs are initiated on facilities located
13in the declared disaster area within 6 months after the
14disaster.
15    (20) Beginning July 1, 1999, game or game birds sold at a
16"game breeding and hunting preserve area" as that term is used
17in the Wildlife Code. This paragraph is exempt from the
18provisions of Section 3-55.
19    (21) A motor vehicle, as that term is defined in Section
201-146 of the Illinois Vehicle Code, that is donated to a
21corporation, limited liability company, society, association,
22foundation, or institution that is determined by the
23Department to be organized and operated exclusively for
24educational purposes. For purposes of this exemption, "a
25corporation, limited liability company, society, association,
26foundation, or institution organized and operated exclusively

 

 

10200HB1539sam001- 771 -LRB102 03555 HLH 39048 a

1for educational purposes" means all tax-supported public
2schools, private schools that offer systematic instruction in
3useful branches of learning by methods common to public
4schools and that compare favorably in their scope and
5intensity with the course of study presented in tax-supported
6schools, and vocational or technical schools or institutes
7organized and operated exclusively to provide a course of
8study of not less than 6 weeks duration and designed to prepare
9individuals to follow a trade or to pursue a manual,
10technical, mechanical, industrial, business, or commercial
11occupation.
12    (22) Beginning January 1, 2000, personal property,
13including food, purchased through fundraising events for the
14benefit of a public or private elementary or secondary school,
15a group of those schools, or one or more school districts if
16the events are sponsored by an entity recognized by the school
17district that consists primarily of volunteers and includes
18parents and teachers of the school children. This paragraph
19does not apply to fundraising events (i) for the benefit of
20private home instruction or (ii) for which the fundraising
21entity purchases the personal property sold at the events from
22another individual or entity that sold the property for the
23purpose of resale by the fundraising entity and that profits
24from the sale to the fundraising entity. This paragraph is
25exempt from the provisions of Section 3-55.
26    (23) Beginning January 1, 2000 and through December 31,

 

 

10200HB1539sam001- 772 -LRB102 03555 HLH 39048 a

12001, new or used automatic vending machines that prepare and
2serve hot food and beverages, including coffee, soup, and
3other items, and replacement parts for these machines.
4Beginning January 1, 2002 and through June 30, 2003, machines
5and parts for machines used in commercial, coin-operated
6amusement and vending business if a use or occupation tax is
7paid on the gross receipts derived from the use of the
8commercial, coin-operated amusement and vending machines. This
9paragraph is exempt from the provisions of Section 3-55.
10    (24) Beginning on August 2, 2001 (the effective date of
11Public Act 92-227), computers and communications equipment
12utilized for any hospital purpose and equipment used in the
13diagnosis, analysis, or treatment of hospital patients sold to
14a lessor who leases the equipment, under a lease of one year or
15longer executed or in effect at the time of the purchase, to a
16hospital that has been issued an active tax exemption
17identification number by the Department under Section 1g of
18the Retailers' Occupation Tax Act. This paragraph is exempt
19from the provisions of Section 3-55.
20    (25) Beginning on August 2, 2001 (the effective date of
21Public Act 92-227), personal property sold to a lessor who
22leases the property, under a lease of one year or longer
23executed or in effect at the time of the purchase, to a
24governmental body that has been issued an active tax exemption
25identification number by the Department under Section 1g of
26the Retailers' Occupation Tax Act. This paragraph is exempt

 

 

10200HB1539sam001- 773 -LRB102 03555 HLH 39048 a

1from the provisions of Section 3-55.
2    (26) Beginning on January 1, 2002 and through June 30,
32016, tangible personal property purchased from an Illinois
4retailer by a taxpayer engaged in centralized purchasing
5activities in Illinois who will, upon receipt of the property
6in Illinois, temporarily store the property in Illinois (i)
7for the purpose of subsequently transporting it outside this
8State for use or consumption thereafter solely outside this
9State or (ii) for the purpose of being processed, fabricated,
10or manufactured into, attached to, or incorporated into other
11tangible personal property to be transported outside this
12State and thereafter used or consumed solely outside this
13State. The Director of Revenue shall, pursuant to rules
14adopted in accordance with the Illinois Administrative
15Procedure Act, issue a permit to any taxpayer in good standing
16with the Department who is eligible for the exemption under
17this paragraph (26). The permit issued under this paragraph
18(26) shall authorize the holder, to the extent and in the
19manner specified in the rules adopted under this Act, to
20purchase tangible personal property from a retailer exempt
21from the taxes imposed by this Act. Taxpayers shall maintain
22all necessary books and records to substantiate the use and
23consumption of all such tangible personal property outside of
24the State of Illinois.
25    (27) Beginning January 1, 2008, tangible personal property
26used in the construction or maintenance of a community water

 

 

10200HB1539sam001- 774 -LRB102 03555 HLH 39048 a

1supply, as defined under Section 3.145 of the Environmental
2Protection Act, that is operated by a not-for-profit
3corporation that holds a valid water supply permit issued
4under Title IV of the Environmental Protection Act. This
5paragraph is exempt from the provisions of Section 3-55.
6    (28) Tangible personal property sold to a
7public-facilities corporation, as described in Section
811-65-10 of the Illinois Municipal Code, for purposes of
9constructing or furnishing a municipal convention hall, but
10only if the legal title to the municipal convention hall is
11transferred to the municipality without any further
12consideration by or on behalf of the municipality at the time
13of the completion of the municipal convention hall or upon the
14retirement or redemption of any bonds or other debt
15instruments issued by the public-facilities corporation in
16connection with the development of the municipal convention
17hall. This exemption includes existing public-facilities
18corporations as provided in Section 11-65-25 of the Illinois
19Municipal Code. This paragraph is exempt from the provisions
20of Section 3-55.
21    (29) Beginning January 1, 2010 and continuing through
22December 31, 2024, materials, parts, equipment, components,
23and furnishings incorporated into or upon an aircraft as part
24of the modification, refurbishment, completion, replacement,
25repair, or maintenance of the aircraft. This exemption
26includes consumable supplies used in the modification,

 

 

10200HB1539sam001- 775 -LRB102 03555 HLH 39048 a

1refurbishment, completion, replacement, repair, and
2maintenance of aircraft, but excludes any materials, parts,
3equipment, components, and consumable supplies used in the
4modification, replacement, repair, and maintenance of aircraft
5engines or power plants, whether such engines or power plants
6are installed or uninstalled upon any such aircraft.
7"Consumable supplies" include, but are not limited to,
8adhesive, tape, sandpaper, general purpose lubricants,
9cleaning solution, latex gloves, and protective films. This
10exemption applies only to the transfer of qualifying tangible
11personal property incident to the modification, refurbishment,
12completion, replacement, repair, or maintenance of an aircraft
13by persons who (i) hold an Air Agency Certificate and are
14empowered to operate an approved repair station by the Federal
15Aviation Administration, (ii) have a Class IV Rating, and
16(iii) conduct operations in accordance with Part 145 of the
17Federal Aviation Regulations. The exemption does not include
18aircraft operated by a commercial air carrier providing
19scheduled passenger air service pursuant to authority issued
20under Part 121 or Part 129 of the Federal Aviation
21Regulations. The changes made to this paragraph (29) by Public
22Act 98-534 are declarative of existing law. It is the intent of
23the General Assembly that the exemption under this paragraph
24(29) applies continuously from January 1, 2010 through
25December 31, 2024; however, no claim for credit or refund is
26allowed for taxes paid as a result of the disallowance of this

 

 

10200HB1539sam001- 776 -LRB102 03555 HLH 39048 a

1exemption on or after January 1, 2015 and prior to the
2effective date of this amendatory Act of the 101st General
3Assembly.
4    (30) Beginning January 1, 2017 and through December 31,
52026, menstrual pads, tampons, and menstrual cups.
6    (31) Tangible personal property transferred to a purchaser
7who is exempt from tax by operation of federal law. This
8paragraph is exempt from the provisions of Section 3-55.
9    (32) Qualified tangible personal property used in the
10construction or operation of a data center that has been
11granted a certificate of exemption by the Department of
12Commerce and Economic Opportunity, whether that tangible
13personal property is purchased by the owner, operator, or
14tenant of the data center or by a contractor or subcontractor
15of the owner, operator, or tenant. Data centers that would
16have qualified for a certificate of exemption prior to January
171, 2020 had this amendatory Act of the 101st General Assembly
18been in effect, may apply for and obtain an exemption for
19subsequent purchases of computer equipment or enabling
20software purchased or leased to upgrade, supplement, or
21replace computer equipment or enabling software purchased or
22leased in the original investment that would have qualified.
23    The Department of Commerce and Economic Opportunity shall
24grant a certificate of exemption under this item (32) to
25qualified data centers as defined by Section 605-1025 of the
26Department of Commerce and Economic Opportunity Law of the

 

 

10200HB1539sam001- 777 -LRB102 03555 HLH 39048 a

1Civil Administrative Code of Illinois.
2    For the purposes of this item (32):
3        "Data center" means a building or a series of
4    buildings rehabilitated or constructed to house working
5    servers in one physical location or multiple sites within
6    the State of Illinois.
7        "Qualified tangible personal property" means:
8    electrical systems and equipment; climate control and
9    chilling equipment and systems; mechanical systems and
10    equipment; monitoring and secure systems; emergency
11    generators; hardware; computers; servers; data storage
12    devices; network connectivity equipment; racks; cabinets;
13    telecommunications cabling infrastructure; raised floor
14    systems; peripheral components or systems; software;
15    mechanical, electrical, or plumbing systems; battery
16    systems; cooling systems and towers; temperature control
17    systems; other cabling; and other data center
18    infrastructure equipment and systems necessary to operate
19    qualified tangible personal property, including fixtures;
20    and component parts of any of the foregoing, including
21    installation, maintenance, repair, refurbishment, and
22    replacement of qualified tangible personal property to
23    generate, transform, transmit, distribute, or manage
24    electricity necessary to operate qualified tangible
25    personal property; and all other tangible personal
26    property that is essential to the operations of a computer

 

 

10200HB1539sam001- 778 -LRB102 03555 HLH 39048 a

1    data center. The term "qualified tangible personal
2    property" also includes building materials physically
3    incorporated in to the qualifying data center. To document
4    the exemption allowed under this Section, the retailer
5    must obtain from the purchaser a copy of the certificate
6    of eligibility issued by the Department of Commerce and
7    Economic Opportunity.
8    This item (32) is exempt from the provisions of Section
93-55.
10(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
11101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
 
12    Section 75-20. The Retailers' Occupation Tax Act is
13amended by changing Section 2-5 as follows:
 
14    (35 ILCS 120/2-5)
15    Sec. 2-5. Exemptions. Gross receipts from proceeds from
16the sale of the following tangible personal property are
17exempt from the tax imposed by this Act:
18        (1) Farm chemicals.
19        (2) Farm machinery and equipment, both new and used,
20    including that manufactured on special order, certified by
21    the purchaser to be used primarily for production
22    agriculture or State or federal agricultural programs,
23    including individual replacement parts for the machinery
24    and equipment, including machinery and equipment purchased

 

 

10200HB1539sam001- 779 -LRB102 03555 HLH 39048 a

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

 

 

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1    facilities, equipment, and activities such as, but not
2    limited to, the collection, monitoring, and correlation of
3    animal and crop data for the purpose of formulating animal
4    diets and agricultural chemicals. This item (2) is exempt
5    from the provisions of Section 2-70.
6        (3) Until July 1, 2003, distillation machinery and
7    equipment, sold as a unit or kit, assembled or installed
8    by the retailer, certified by the user to be used only for
9    the production of ethyl alcohol that will be used for
10    consumption as motor fuel or as a component of motor fuel
11    for the personal use of the user, and not subject to sale
12    or resale.
13        (4) Until July 1, 2003 and beginning again September
14    1, 2004 through August 30, 2014, graphic arts machinery
15    and equipment, including repair and replacement parts,
16    both new and used, and including that manufactured on
17    special order or purchased for lease, certified by the
18    purchaser to be used primarily for graphic arts
19    production. Equipment includes chemicals or chemicals
20    acting as catalysts but only if the chemicals or chemicals
21    acting as catalysts effect a direct and immediate change
22    upon a graphic arts product. Beginning on July 1, 2017,
23    graphic arts machinery and equipment is included in the
24    manufacturing and assembling machinery and equipment
25    exemption under paragraph (14).
26        (5) A motor vehicle that is used for automobile

 

 

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1    renting, as defined in the Automobile Renting Occupation
2    and Use Tax Act. This paragraph is exempt from the
3    provisions of Section 2-70.
4        (6) Personal property sold by a teacher-sponsored
5    student organization affiliated with an elementary or
6    secondary school located in Illinois.
7        (7) Until July 1, 2003, proceeds of that portion of
8    the selling price of a passenger car the sale of which is
9    subject to the Replacement Vehicle Tax.
10        (8) Personal property sold to an Illinois county fair
11    association for use in conducting, operating, or promoting
12    the county fair.
13        (9) Personal property sold to a not-for-profit arts or
14    cultural organization that establishes, by proof required
15    by the Department by rule, that it has received an
16    exemption under Section 501(c)(3) of the Internal Revenue
17    Code and that is organized and operated primarily for the
18    presentation or support of arts or cultural programming,
19    activities, or services. These organizations include, but
20    are not limited to, music and dramatic arts organizations
21    such as symphony orchestras and theatrical groups, arts
22    and cultural service organizations, local arts councils,
23    visual arts organizations, and media arts organizations.
24    On and after July 1, 2001 (the effective date of Public Act
25    92-35), however, an entity otherwise eligible for this
26    exemption shall not make tax-free purchases unless it has

 

 

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1    an active identification number issued by the Department.
2        (10) Personal property sold by a corporation, society,
3    association, foundation, institution, or organization,
4    other than a limited liability company, that is organized
5    and operated as a not-for-profit service enterprise for
6    the benefit of persons 65 years of age or older if the
7    personal property was not purchased by the enterprise for
8    the purpose of resale by the enterprise.
9        (11) Personal property sold to a governmental body, to
10    a corporation, society, association, foundation, or
11    institution organized and operated exclusively for
12    charitable, religious, or educational purposes, or to a
13    not-for-profit corporation, society, association,
14    foundation, institution, or organization that has no
15    compensated officers or employees and that is organized
16    and operated primarily for the recreation of persons 55
17    years of age or older. A limited liability company may
18    qualify for the exemption under this paragraph only if the
19    limited liability company is organized and operated
20    exclusively for educational purposes. On and after July 1,
21    1987, however, no entity otherwise eligible for this
22    exemption shall make tax-free purchases unless it has an
23    active identification number issued by the Department.
24        (12) (Blank).
25        (12-5) On and after July 1, 2003 and through June 30,
26    2004, motor vehicles of the second division with a gross

 

 

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1    vehicle weight in excess of 8,000 pounds that are subject
2    to the commercial distribution fee imposed under Section
3    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
4    2004 and through June 30, 2005, the use in this State of
5    motor vehicles of the second division: (i) with a gross
6    vehicle weight rating in excess of 8,000 pounds; (ii) that
7    are subject to the commercial distribution fee imposed
8    under Section 3-815.1 of the Illinois Vehicle Code; and
9    (iii) that are primarily used for commercial purposes.
10    Through June 30, 2005, this exemption applies to repair
11    and replacement parts added after the initial purchase of
12    such a motor vehicle if that motor vehicle is used in a
13    manner that would qualify for the rolling stock exemption
14    otherwise provided for in this Act. For purposes of this
15    paragraph, "used for commercial purposes" means the
16    transportation of persons or property in furtherance of
17    any commercial or industrial enterprise whether for-hire
18    or not.
19        (13) Proceeds from sales to owners, lessors, or
20    shippers of tangible personal property that is utilized by
21    interstate carriers for hire for use as rolling stock
22    moving in interstate commerce and equipment operated by a
23    telecommunications provider, licensed as a common carrier
24    by the Federal Communications Commission, which is
25    permanently installed in or affixed to aircraft moving in
26    interstate commerce.

 

 

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1        (14) Machinery and equipment that will be used by the
2    purchaser, or a lessee of the purchaser, primarily in the
3    process of manufacturing or assembling tangible personal
4    property for wholesale or retail sale or lease, whether
5    the sale or lease is made directly by the manufacturer or
6    by some other person, whether the materials used in the
7    process are owned by the manufacturer or some other
8    person, or whether the sale or lease is made apart from or
9    as an incident to the seller's engaging in the service
10    occupation of producing machines, tools, dies, jigs,
11    patterns, gauges, or other similar items of no commercial
12    value on special order for a particular purchaser. The
13    exemption provided by this paragraph (14) does not include
14    machinery and equipment used in (i) the generation of
15    electricity for wholesale or retail sale; (ii) the
16    generation or treatment of natural or artificial gas for
17    wholesale or retail sale that is delivered to customers
18    through pipes, pipelines, or mains; or (iii) the treatment
19    of water for wholesale or retail sale that is delivered to
20    customers through pipes, pipelines, or mains. The
21    provisions of Public Act 98-583 are declaratory of
22    existing law as to the meaning and scope of this
23    exemption. Beginning on July 1, 2017, the exemption
24    provided by this paragraph (14) includes, but is not
25    limited to, graphic arts machinery and equipment, as
26    defined in paragraph (4) of this Section.

 

 

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1        (15) Proceeds of mandatory service charges separately
2    stated on customers' bills for purchase and consumption of
3    food and beverages, to the extent that the proceeds of the
4    service charge are in fact turned over as tips or as a
5    substitute for tips to the employees who participate
6    directly in preparing, serving, hosting or cleaning up the
7    food or beverage function with respect to which the
8    service charge is imposed.
9        (16) Tangible personal property sold to a purchaser if
10    the purchaser is exempt from use tax by operation of
11    federal law. This paragraph is exempt from the provisions
12    of Section 2-70.
13        (17) Tangible personal property sold to a common
14    carrier by rail or motor that receives the physical
15    possession of the property in Illinois and that transports
16    the property, or shares with another common carrier in the
17    transportation of the property, out of Illinois on a
18    standard uniform bill of lading showing the seller of the
19    property as the shipper or consignor of the property to a
20    destination outside Illinois, for use outside Illinois.
21        (18) Legal tender, currency, medallions, or gold or
22    silver coinage issued by the State of Illinois, the
23    government of the United States of America, or the
24    government of any foreign country, and bullion.
25        (19) Until July 1, 2003, oil field exploration,
26    drilling, and production equipment, including (i) rigs and

 

 

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1    parts of rigs, rotary rigs, cable tool rigs, and workover
2    rigs, (ii) pipe and tubular goods, including casing and
3    drill strings, (iii) pumps and pump-jack units, (iv)
4    storage tanks and flow lines, (v) any individual
5    replacement part for oil field exploration, drilling, and
6    production equipment, and (vi) machinery and equipment
7    purchased for lease; but excluding motor vehicles required
8    to be registered under the Illinois Vehicle Code.
9        (20) Photoprocessing machinery and equipment,
10    including repair and replacement parts, both new and used,
11    including that manufactured on special order, certified by
12    the purchaser to be used primarily for photoprocessing,
13    and including photoprocessing machinery and equipment
14    purchased for lease.
15        (21) Until July 1, 2028 July 1, 2023, coal and
16    aggregate exploration, mining, off-highway hauling,
17    processing, maintenance, and reclamation equipment,
18    including replacement parts and equipment, and including
19    equipment purchased for lease, but excluding motor
20    vehicles required to be registered under the Illinois
21    Vehicle Code. The changes made to this Section by Public
22    Act 97-767 apply on and after July 1, 2003, but no claim
23    for credit or refund is allowed on or after August 16, 2013
24    (the effective date of Public Act 98-456) for such taxes
25    paid during the period beginning July 1, 2003 and ending
26    on August 16, 2013 (the effective date of Public Act

 

 

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1    98-456).
2        (22) Until June 30, 2013, fuel and petroleum products
3    sold to or used by an air carrier, certified by the carrier
4    to be used for consumption, shipment, or storage in the
5    conduct of its business as an air common carrier, for a
6    flight destined for or returning from a location or
7    locations outside the United States without regard to
8    previous or subsequent domestic stopovers.
9        Beginning July 1, 2013, fuel and petroleum products
10    sold to or used by an air carrier, certified by the carrier
11    to be used for consumption, shipment, or storage in the
12    conduct of its business as an air common carrier, for a
13    flight that (i) is engaged in foreign trade or is engaged
14    in trade between the United States and any of its
15    possessions and (ii) transports at least one individual or
16    package for hire from the city of origination to the city
17    of final destination on the same aircraft, without regard
18    to a change in the flight number of that aircraft.
19        (23) A transaction in which the purchase order is
20    received by a florist who is located outside Illinois, but
21    who has a florist located in Illinois deliver the property
22    to the purchaser or the purchaser's donee in Illinois.
23        (24) Fuel consumed or used in the operation of ships,
24    barges, or vessels that are used primarily in or for the
25    transportation of property or the conveyance of persons
26    for hire on rivers bordering on this State if the fuel is

 

 

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1    delivered by the seller to the purchaser's barge, ship, or
2    vessel while it is afloat upon that bordering river.
3        (25) Except as provided in item (25-5) of this
4    Section, a motor vehicle sold in this State to a
5    nonresident even though the motor vehicle is delivered to
6    the nonresident in this State, if the motor vehicle is not
7    to be titled in this State, and if a drive-away permit is
8    issued to the motor vehicle as provided in Section 3-603
9    of the Illinois Vehicle Code or if the nonresident
10    purchaser has vehicle registration plates to transfer to
11    the motor vehicle upon returning to his or her home state.
12    The issuance of the drive-away permit or having the
13    out-of-state registration plates to be transferred is
14    prima facie evidence that the motor vehicle will not be
15    titled in this State.
16        (25-5) The exemption under item (25) does not apply if
17    the state in which the motor vehicle will be titled does
18    not allow a reciprocal exemption for a motor vehicle sold
19    and delivered in that state to an Illinois resident but
20    titled in Illinois. The tax collected under this Act on
21    the sale of a motor vehicle in this State to a resident of
22    another state that does not allow a reciprocal exemption
23    shall be imposed at a rate equal to the state's rate of tax
24    on taxable property in the state in which the purchaser is
25    a resident, except that the tax shall not exceed the tax
26    that would otherwise be imposed under this Act. At the

 

 

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1    time of the sale, the purchaser shall execute a statement,
2    signed under penalty of perjury, of his or her intent to
3    title the vehicle in the state in which the purchaser is a
4    resident within 30 days after the sale and of the fact of
5    the payment to the State of Illinois of tax in an amount
6    equivalent to the state's rate of tax on taxable property
7    in his or her state of residence and shall submit the
8    statement to the appropriate tax collection agency in his
9    or her state of residence. In addition, the retailer must
10    retain a signed copy of the statement in his or her
11    records. Nothing in this item shall be construed to
12    require the removal of the vehicle from this state
13    following the filing of an intent to title the vehicle in
14    the purchaser's state of residence if the purchaser titles
15    the vehicle in his or her state of residence within 30 days
16    after the date of sale. The tax collected under this Act in
17    accordance with this item (25-5) shall be proportionately
18    distributed as if the tax were collected at the 6.25%
19    general rate imposed under this Act.
20        (25-7) Beginning on July 1, 2007, no tax is imposed
21    under this Act on the sale of an aircraft, as defined in
22    Section 3 of the Illinois Aeronautics Act, if all of the
23    following conditions are met:
24            (1) the aircraft leaves this State within 15 days
25        after the later of either the issuance of the final
26        billing for the sale of the aircraft, or the

 

 

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1        authorized approval for return to service, completion
2        of the maintenance record entry, and completion of the
3        test flight and ground test for inspection, as
4        required by 14 C.F.R. 91.407;
5            (2) the aircraft is not based or registered in
6        this State after the sale of the aircraft; and
7            (3) the seller retains in his or her books and
8        records and provides to the Department a signed and
9        dated certification from the purchaser, on a form
10        prescribed by the Department, certifying that the
11        requirements of this item (25-7) are met. The
12        certificate must also include the name and address of
13        the purchaser, the address of the location where the
14        aircraft is to be titled or registered, the address of
15        the primary physical location of the aircraft, and
16        other information that the Department may reasonably
17        require.
18        For purposes of this item (25-7):
19        "Based in this State" means hangared, stored, or
20    otherwise used, excluding post-sale customizations as
21    defined in this Section, for 10 or more days in each
22    12-month period immediately following the date of the sale
23    of the aircraft.
24        "Registered in this State" means an aircraft
25    registered with the Department of Transportation,
26    Aeronautics Division, or titled or registered with the

 

 

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1    Federal Aviation Administration to an address located in
2    this State.
3        This paragraph (25-7) is exempt from the provisions of
4    Section 2-70.
5        (26) Semen used for artificial insemination of
6    livestock for direct agricultural production.
7        (27) Horses, or interests in horses, registered with
8    and meeting the requirements of any of the Arabian Horse
9    Club Registry of America, Appaloosa Horse Club, American
10    Quarter Horse Association, United States Trotting
11    Association, or Jockey Club, as appropriate, used for
12    purposes of breeding or racing for prizes. This item (27)
13    is exempt from the provisions of Section 2-70, and the
14    exemption provided for under this item (27) applies for
15    all periods beginning May 30, 1995, but no claim for
16    credit or refund is allowed on or after January 1, 2008
17    (the effective date of Public Act 95-88) for such taxes
18    paid during the period beginning May 30, 2000 and ending
19    on January 1, 2008 (the effective date of Public Act
20    95-88).
21        (28) Computers and communications equipment utilized
22    for any hospital purpose and equipment used in the
23    diagnosis, analysis, or treatment of hospital patients
24    sold to a lessor who leases the equipment, under a lease of
25    one year or longer executed or in effect at the time of the
26    purchase, to a hospital that has been issued an active tax

 

 

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1    exemption identification number by the Department under
2    Section 1g of this Act.
3        (29) Personal property sold to a lessor who leases the
4    property, under a lease of one year or longer executed or
5    in effect at the time of the purchase, to a governmental
6    body that has been issued an active tax exemption
7    identification number by the Department under Section 1g
8    of this Act.
9        (30) Beginning with taxable years ending on or after
10    December 31, 1995 and ending with taxable years ending on
11    or before December 31, 2004, personal property that is
12    donated for disaster relief to be used in a State or
13    federally declared disaster area in Illinois or bordering
14    Illinois by a manufacturer or retailer that is registered
15    in this State to a corporation, society, association,
16    foundation, or institution that has been issued a sales
17    tax exemption identification number by the Department that
18    assists victims of the disaster who reside within the
19    declared disaster area.
20        (31) Beginning with taxable years ending on or after
21    December 31, 1995 and ending with taxable years ending on
22    or before December 31, 2004, personal property that is
23    used in the performance of infrastructure repairs in this
24    State, including but not limited to municipal roads and
25    streets, access roads, bridges, sidewalks, waste disposal
26    systems, water and sewer line extensions, water

 

 

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1    distribution and purification facilities, storm water
2    drainage and retention facilities, and sewage treatment
3    facilities, resulting from a State or federally declared
4    disaster in Illinois or bordering Illinois when such
5    repairs are initiated on facilities located in the
6    declared disaster area within 6 months after the disaster.
7        (32) Beginning July 1, 1999, game or game birds sold
8    at a "game breeding and hunting preserve area" as that
9    term is used in the Wildlife Code. This paragraph is
10    exempt from the provisions of Section 2-70.
11        (33) A motor vehicle, as that term is defined in
12    Section 1-146 of the Illinois Vehicle Code, that is
13    donated to a corporation, limited liability company,
14    society, association, foundation, or institution that is
15    determined by the Department to be organized and operated
16    exclusively for educational purposes. For purposes of this
17    exemption, "a corporation, limited liability company,
18    society, association, foundation, or institution organized
19    and operated exclusively for educational purposes" means
20    all tax-supported public schools, private schools that
21    offer systematic instruction in useful branches of
22    learning by methods common to public schools and that
23    compare favorably in their scope and intensity with the
24    course of study presented in tax-supported schools, and
25    vocational or technical schools or institutes organized
26    and operated exclusively to provide a course of study of

 

 

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1    not less than 6 weeks duration and designed to prepare
2    individuals to follow a trade or to pursue a manual,
3    technical, mechanical, industrial, business, or commercial
4    occupation.
5        (34) Beginning January 1, 2000, personal property,
6    including food, purchased through fundraising events for
7    the benefit of a public or private elementary or secondary
8    school, a group of those schools, or one or more school
9    districts if the events are sponsored by an entity
10    recognized by the school district that consists primarily
11    of volunteers and includes parents and teachers of the
12    school children. This paragraph does not apply to
13    fundraising events (i) for the benefit of private home
14    instruction or (ii) for which the fundraising entity
15    purchases the personal property sold at the events from
16    another individual or entity that sold the property for
17    the purpose of resale by the fundraising entity and that
18    profits from the sale to the fundraising entity. This
19    paragraph is exempt from the provisions of Section 2-70.
20        (35) Beginning January 1, 2000 and through December
21    31, 2001, new or used automatic vending machines that
22    prepare and serve hot food and beverages, including
23    coffee, soup, and other items, and replacement parts for
24    these machines. Beginning January 1, 2002 and through June
25    30, 2003, machines and parts for machines used in
26    commercial, coin-operated amusement and vending business

 

 

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1    if a use or occupation tax is paid on the gross receipts
2    derived from the use of the commercial, coin-operated
3    amusement and vending machines. This paragraph is exempt
4    from the provisions of Section 2-70.
5        (35-5) Beginning August 23, 2001 and through June 30,
6    2016, food for human consumption that is to be consumed
7    off the premises where it is sold (other than alcoholic
8    beverages, soft drinks, and food that has been prepared
9    for immediate consumption) and prescription and
10    nonprescription medicines, drugs, medical appliances, and
11    insulin, urine testing materials, syringes, and needles
12    used by diabetics, for human use, when purchased for use
13    by a person receiving medical assistance under Article V
14    of the Illinois Public Aid Code who resides in a licensed
15    long-term care facility, as defined in the Nursing Home
16    Care Act, or a licensed facility as defined in the ID/DD
17    Community Care Act, the MC/DD Act, or the Specialized
18    Mental Health Rehabilitation Act of 2013.
19        (36) Beginning August 2, 2001, computers and
20    communications equipment utilized for any hospital purpose
21    and equipment used in the diagnosis, analysis, or
22    treatment of hospital patients sold to a lessor who leases
23    the equipment, under a lease of one year or longer
24    executed or in effect at the time of the purchase, to a
25    hospital that has been issued an active tax exemption
26    identification number by the Department under Section 1g

 

 

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1    of this Act. This paragraph is exempt from the provisions
2    of Section 2-70.
3        (37) Beginning August 2, 2001, personal property sold
4    to a lessor who leases the property, under a lease of one
5    year or longer executed or in effect at the time of the
6    purchase, to a governmental body that has been issued an
7    active tax exemption identification number by the
8    Department under Section 1g of this Act. This paragraph is
9    exempt from the provisions of Section 2-70.
10        (38) Beginning on January 1, 2002 and through June 30,
11    2016, tangible personal property purchased from an
12    Illinois retailer by a taxpayer engaged in centralized
13    purchasing activities in Illinois who will, upon receipt
14    of the property in Illinois, temporarily store the
15    property in Illinois (i) for the purpose of subsequently
16    transporting it outside this State for use or consumption
17    thereafter solely outside this State or (ii) for the
18    purpose of being processed, fabricated, or manufactured
19    into, attached to, or incorporated into other tangible
20    personal property to be transported outside this State and
21    thereafter used or consumed solely outside this State. The
22    Director of Revenue shall, pursuant to rules adopted in
23    accordance with the Illinois Administrative Procedure Act,
24    issue a permit to any taxpayer in good standing with the
25    Department who is eligible for the exemption under this
26    paragraph (38). The permit issued under this paragraph

 

 

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1    (38) shall authorize the holder, to the extent and in the
2    manner specified in the rules adopted under this Act, to
3    purchase tangible personal property from a retailer exempt
4    from the taxes imposed by this Act. Taxpayers shall
5    maintain all necessary books and records to substantiate
6    the use and consumption of all such tangible personal
7    property outside of the State of Illinois.
8        (39) Beginning January 1, 2008, tangible personal
9    property used in the construction or maintenance of a
10    community water supply, as defined under Section 3.145 of
11    the Environmental Protection Act, that is operated by a
12    not-for-profit corporation that holds a valid water supply
13    permit issued under Title IV of the Environmental
14    Protection Act. This paragraph is exempt from the
15    provisions of Section 2-70.
16        (40) Beginning January 1, 2010 and continuing through
17    December 31, 2024, materials, parts, equipment,
18    components, and furnishings incorporated into or upon an
19    aircraft as part of the modification, refurbishment,
20    completion, replacement, repair, or maintenance of the
21    aircraft. This exemption includes consumable supplies used
22    in the modification, refurbishment, completion,
23    replacement, repair, and maintenance of aircraft, but
24    excludes any materials, parts, equipment, components, and
25    consumable supplies used in the modification, replacement,
26    repair, and maintenance of aircraft engines or power

 

 

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1    plants, whether such engines or power plants are installed
2    or uninstalled upon any such aircraft. "Consumable
3    supplies" include, but are not limited to, adhesive, tape,
4    sandpaper, general purpose lubricants, cleaning solution,
5    latex gloves, and protective films. This exemption applies
6    only to the sale of qualifying tangible personal property
7    to persons who modify, refurbish, complete, replace, or
8    maintain an aircraft and who (i) hold an Air Agency
9    Certificate and are empowered to operate an approved
10    repair station by the Federal Aviation Administration,
11    (ii) have a Class IV Rating, and (iii) conduct operations
12    in accordance with Part 145 of the Federal Aviation
13    Regulations. The exemption does not include aircraft
14    operated by a commercial air carrier providing scheduled
15    passenger air service pursuant to authority issued under
16    Part 121 or Part 129 of the Federal Aviation Regulations.
17    The changes made to this paragraph (40) by Public Act
18    98-534 are declarative of existing law. It is the intent
19    of the General Assembly that the exemption under this
20    paragraph (40) applies continuously from January 1, 2010
21    through December 31, 2024; however, no claim for credit or
22    refund is allowed for taxes paid as a result of the
23    disallowance of this exemption on or after January 1, 2015
24    and prior to the effective date of this amendatory Act of
25    the 101st General Assembly.
26        (41) Tangible personal property sold to a

 

 

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

 

 

10200HB1539sam001- 800 -LRB102 03555 HLH 39048 a

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

 

 

10200HB1539sam001- 801 -LRB102 03555 HLH 39048 a

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

 

 

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1        This item (44) is exempt from the provisions of
2    Section 2-70.
3        (45) Beginning January 1, 2020 and through December
4    31, 2020, sales of tangible personal property made by a
5    marketplace seller over a marketplace for which tax is due
6    under this Act but for which use tax has been collected and
7    remitted to the Department by a marketplace facilitator
8    under Section 2d of the Use Tax Act are exempt from tax
9    under this Act. A marketplace seller claiming this
10    exemption shall maintain books and records demonstrating
11    that the use tax on such sales has been collected and
12    remitted by a marketplace facilitator. Marketplace sellers
13    that have properly remitted tax under this Act on such
14    sales may file a claim for credit as provided in Section 6
15    of this Act. No claim is allowed, however, for such taxes
16    for which a credit or refund has been issued to the
17    marketplace facilitator under the Use Tax Act, or for
18    which the marketplace facilitator has filed a claim for
19    credit or refund under the Use Tax Act.
20(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
21101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
228-27-21; revised 11-9-21.)
 
23
ARTICLE 80. STATE FINANCE ACT

 
24    Section 80-5. The State Finance Act is amended by changing

 

 

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1Section 8g-1 as follows:
 
2    (30 ILCS 105/8g-1)
3    Sec. 8g-1. Fund transfers.
4    (a) (Blank).
5    (b) (Blank).
6    (c) (Blank).
7    (d) (Blank).
8    (e) (Blank).
9    (f) (Blank).
10    (g) (Blank).
11    (h) (Blank).
12    (i) (Blank).
13    (j) (Blank).
14    (k) (Blank).
15    (l) (Blank).
16    (m) (Blank).
17    (n) (Blank).
18    (o) (Blank).
19    (p) (Blank).
20    (q) (Blank).
21    (r) (Blank).
22    (s) (Blank).
23    (t) (Blank).
24    (u) In addition to any other transfers that may be
25provided for by law, on July 1, 2021, or as soon thereafter as

 

 

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1practical, only as directed by the Director of the Governor's
2Office of Management and Budget, the State Comptroller shall
3direct and the State Treasurer shall transfer the sum of
4$5,000,000 from the General Revenue Fund to the DoIT Special
5Projects Fund, and on June 1, 2022, or as soon thereafter as
6practical, but no later than June 30, 2022, the State
7Comptroller shall direct and the State Treasurer shall
8transfer the sum so transferred from the DoIT Special Projects
9Fund to the General Revenue Fund.
10    (v) In addition to any other transfers that may be
11provided for by law, on July 1, 2021, or as soon thereafter as
12practical, the State Comptroller shall direct and the State
13Treasurer shall transfer the sum of $500,000 from the General
14Revenue Fund to the Governor's Administrative Fund.
15    (w) In addition to any other transfers that may be
16provided for by law, on July 1, 2021, or as soon thereafter as
17practical, the State Comptroller shall direct and the State
18Treasurer shall transfer the sum of $500,000 from the General
19Revenue Fund to the Grant Accountability and Transparency
20Fund.
21    (x) In addition to any other transfers that may be
22provided for by law, at a time or times during Fiscal Year 2022
23as directed by the Governor, the State Comptroller shall
24direct and the State Treasurer shall transfer up to a total of
25$20,000,000 from the General Revenue Fund to the Illinois
26Sports Facilities Fund to be credited to the Advance Account

 

 

10200HB1539sam001- 805 -LRB102 03555 HLH 39048 a

1within the Fund.
2    (y) In addition to any other transfers that may be
3provided for by law, on June 15, 2021, or as soon thereafter as
4practical, but no later than June 30, 2021, the State
5Comptroller shall direct and the State Treasurer shall
6transfer the sum of $100,000,000 from the General Revenue Fund
7to the Technology Management Revolving Fund.
8    (z) In addition to any other transfers that may be
9provided for by law, on the effective date of this amendatory
10Act of the 102nd General Assembly, or as soon thereafter as
11practical, but no later than June 30, 2022, the State
12Comptroller shall direct and the State Treasurer shall
13transfer the sum of $720,000,000 from the General Revenue Fund
14to the Budget Stabilization Fund.
15    (aa) In addition to any other transfers that may be
16provided for by law, on July 1, 2022, or as soon thereafter as
17practical, the State Comptroller shall direct and the State
18Treasurer shall transfer the sum of $280,000,000 from the
19General Revenue Fund to the Budget Stabilization Fund.
20    (bb) In addition to any other transfers that may be
21provided for by law, on July 1, 2022, or as soon thereafter as
22practical, the State Comptroller shall direct and the State
23Treasurer shall transfer the sum of $200,000,000 from the
24General Revenue Fund to the Pension Stabilization Fund.
25(Source: P.A. 101-10, eff. 6-5-19; 101-636, eff. 6-10-20;
26102-16, eff. 6-17-21.)
 

 

 

10200HB1539sam001- 806 -LRB102 03555 HLH 39048 a

1
ARTICLE 85. INCOME TAX-INSTRUCTIONAL MATERIALS

 
2    Section 85-5. The Illinois Income Tax Act is amended by
3changing Section 225 as follows:
 
4    (35 ILCS 5/225)
5    Sec. 225. Credit for instructional materials and supplies.
6For taxable years beginning on and after January 1, 2017, a
7taxpayer shall be allowed a credit in the amount paid by the
8taxpayer during the taxable year for instructional materials
9and supplies with respect to classroom based instruction in a
10qualified school, or the maximum credit amount $250, whichever
11is less, provided that the taxpayer is a teacher, instructor,
12counselor, principal, or aide in a qualified school for at
13least 900 hours during a school year.
14    The credit may not be carried back and may not reduce the
15taxpayer's liability to less than zero. If the amount of the
16credit exceeds the tax liability for the year, the excess may
17be carried forward and applied to the tax liability of the 5
18taxable years following the excess credit year. The tax credit
19shall be applied to the earliest year for which there is a tax
20liability. If there are credits for more than one year that are
21available to offset a liability, the earlier credit shall be
22applied first.
23    For purposes of this Section, the term "materials and

 

 

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1supplies" means amounts paid for instructional materials or
2supplies that are designated for classroom use in any
3qualified school. For purposes of this Section, the term
4"qualified school" means a public school or non-public school
5located in Illinois.
6    For purposes of this Section, the term "maximum credit
7amount" means (i) $250 for taxable years beginning prior to
8January 1, 2023 and (ii) $500 for taxable years beginning on or
9after January 1, 2023.
10    This Section is exempt from the provisions of Section 250.
11(Source: P.A. 100-22, eff. 7-6-17.)
 
12
ARTICLE 95. AGRITOURISM

 
13    Section 95-3. The Illinois Administrative Procedure Act is
14amended by adding Section 5-45.22 as follows:
 
15    (5 ILCS 100/5-45.22 new)
16    Sec. 5-45.22. Emergency rulemaking. To provide for the
17expeditious and timely implementation of Article 95 of this
18amendatory Act of the 102nd General Assembly, emergency rules
19implementing Article 95 of this amendatory Act of the 102nd
20General Assembly may be adopted in accordance with Section
215-45 by the Department of Agriculture. The adoption of
22emergency rules authorized by Section 5-45 and this Section is
23deemed to be necessary for the public interest, safety, and

 

 

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1welfare.
2    This Section is repealed one year after the effective date
3of this amendatory Act of the 102nd General Assembly.
 
4    Section 95-5. The Illinois Income Tax Act is amended by
5adding Section 232 as follows:
 
6    (35 ILCS 5/232 new)
7    Sec. 232. Tax credit for agritourism liability insurance.
8    (a) For taxable years beginning on or after January 1,
92022 and ending on or before December 31, 2023, any individual
10or entity that operates an agritourism operation in the State
11during the taxable year shall be entitled to a tax credit
12against the tax imposed by subsections (a) and (b) of Section
13201 equal to the lesser of 100% of the liability insurance
14premiums paid by that individual or entity during the taxable
15year or $1,000. To claim the credit, the taxpayer must apply to
16the Department of Agriculture for a certificate of credit in
17the form and manner required by the Department of Agriculture
18by rule. If granted, the taxpayer shall attach a copy of the
19certificate of credit to his or her Illinois income tax return
20for the taxable year. The total amount of credits that may be
21awarded by the Department of Agriculture may not exceed
22$1,000,000 in any calendar year.
23    (b) For the purposes of this Section:
24    "Agricultural property" means property that is used in

 

 

10200HB1539sam001- 809 -LRB102 03555 HLH 39048 a

1whole or in part for production agriculture, as defined in
2Section 3-35 of the Use Tax Act, or used in connection with one
3or more of the following:
4        (1) the growing and harvesting of crops;
5        (2) the feeding, breeding, and management of
6    livestock;
7        (3) dairying or any other agricultural or
8    horticultural use or combination of those uses, including,
9    but not limited to, the harvesting of hay, grain, fruit,
10    or truck or vegetable crops, or floriculture, mushroom
11    growing, plant or tree nurseries, orchards, forestry, sod
12    farming, or greenhouses; or
13        (4) the keeping, raising, and feeding of livestock or
14    poultry, including dairying, poultry, swine, sheep, beef
15    cattle, ponies or horses, fur farming, bees, fish and
16    wildlife farming.
17    "Agritourism activities" includes, but is not limited to,
18the following:
19        (1) historic, cultural, and on-site educational
20    programs;
21        (2) guided and self-guided tours, including school
22    tours;
23        (3) animal exhibitions or petting zoos;
24        (4) agricultural crop mazes, such as corn or flower
25    mazes;
26        (5) harvest-your-own or U-pick operations;

 

 

10200HB1539sam001- 810 -LRB102 03555 HLH 39048 a

1        (6) horseback or pony rides; and
2        (7) hayrides or sleigh rides.
3    "Agritourism activities" does not include the following
4activities:
5        (1) hunting;
6        (2) fishing;
7        (3) amusement rides;
8        (4) rodeos;
9        (5) off-road biking or motorized off-highway or
10    all-terrain vehicle activities;
11        (6) boating, swimming, canoeing, hiking, camping,
12    skiing, bounce houses, or similar activities; or
13        (7) entertainment venues such as weddings or concerts.
14    "Agritourism operation" means an individual or entity that
15carries out agricultural activities on agricultural property
16and allows members of the general public, for recreational,
17entertainment, or educational purposes, to view or enjoy those
18activities.
19    (c) If the taxpayer is a partnership or Subchapter S
20corporation, the credit shall be allowed to the partners or
21shareholders in accordance with the determination of income
22and distributive share of income under Sections 702 and 704
23and Subchapter S of the Internal Revenue Code.
24    (d) In no event shall a credit under this Section reduce
25the taxpayer's liability to less than zero. If the amount of
26the credit exceeds the tax liability for the year, the excess

 

 

10200HB1539sam001- 811 -LRB102 03555 HLH 39048 a

1may be carried forward and applied to the tax liability of the
25 taxable years following the excess credit year. The tax
3credit shall be applied to the earliest year for which there is
4a tax liability. If there are credits for more than one year
5that are available to offset a liability, the earlier credit
6shall be applied first.
 
7
ARTICLE 100. PARKING EXCISE TAX

 
8    Section 100-5. The Parking Excise Tax Act is amended by
9changing Section 10-5 as follows:
 
10    (35 ILCS 525/10-5)
11    Sec. 10-5. Definitions. As used in this Act:
12    "Booking intermediary" means any person or entity that
13facilitates the processing and fulfillment of reservation
14transactions between an operator and a person or entity
15desiring parking in a parking lot or garage of that operator.
16    "Charge or fee paid for parking" means the gross amount of
17consideration for the use or privilege of parking a motor
18vehicle in or upon any parking lot or garage in the State,
19collected by an operator and valued in money, whether received
20in money or otherwise, including cash, credits, property, and
21services, determined without any deduction for costs or
22expenses, but not including charges that are added to the
23charge or fee on account of the tax imposed by this Act or on

 

 

10200HB1539sam001- 812 -LRB102 03555 HLH 39048 a

1account of any other tax imposed on the charge or fee. "Charge
2or fee paid for parking" excludes separately stated charges
3not for the use or privilege or parking and excludes amounts
4retained by or paid to a booking intermediary for services
5provided by the booking intermediary. If any separately stated
6charge is not optional, it shall be presumed that it is part of
7the charge for the use or privilege or parking.
8    "Department" means the Department of Revenue.
9    "Operator" means any person who engages in the business of
10operating a parking area or garage, or who, directly or
11through an agreement or arrangement with another party,
12collects the consideration for parking or storage of motor
13vehicles, recreational vehicles, or other self-propelled
14vehicles, at that parking place. This includes, but is not
15limited to, any facilitator or aggregator that collects the
16purchase price from the purchaser the charge or fee paid for
17parking. "Operator" does not include a bank, credit card
18company, payment processor, booking intermediary, or person
19whose involvement is limited to performing functions that are
20similar to those performed by a bank, credit card company, or
21payment processor, or booking intermediary.
22    "Parking area or garage" means any real estate, building,
23structure, premises, enclosure or other place, whether
24enclosed or not, except a public way, within the State, where
25motor vehicles, recreational vehicles, or other self-propelled
26vehicles, are stored, housed or parked for hire, charge, fee

 

 

10200HB1539sam001- 813 -LRB102 03555 HLH 39048 a

1or other valuable consideration in a condition ready for use,
2or where rent or compensation is paid to the owner, manager,
3operator or lessee of the premises for the housing, storing,
4sheltering, keeping or maintaining motor vehicles,
5recreational vehicles, or other self-propelled vehicles.
6"Parking area or garage" includes any parking area or garage,
7whether the vehicle is parked by the owner of the vehicle or by
8the operator or an attendant.
9    "Person" means any natural individual, firm, trust,
10estate, partnership, association, joint stock company, joint
11venture, corporation, limited liability company, or a
12receiver, trustee, guardian, or other representative appointed
13by order of any court.
14    "Purchase price" means the consideration paid for the
15purchase of a parking space in a parking area or garage, valued
16in money, whether received in money or otherwise, including
17cash, gift cards, credits, and property, and shall be
18determined without any deduction on account of the cost of
19materials used, labor or service costs, or any other expense
20whatsoever.
21    "Purchase price" includes any and all charges that the
22recipient pays related to or incidental to obtaining the use
23or privilege of using a parking space in a parking area or
24garage, including but not limited to any and all related
25markups, service fees, convenience fees, facilitation fees,
26cancellation fees, overtime fees, or other such charges,

 

 

10200HB1539sam001- 814 -LRB102 03555 HLH 39048 a

1regardless of terminology. However, "purchase price" shall not
2include consideration paid for:
3        (1) optional, separately stated charges not for the
4    use or privilege of using a parking space in the parking
5    area or garage;
6        (2) any charge for a dishonored check;
7        (3) any finance or credit charge, penalty or charge
8    for delayed payment, or discount for prompt payment;
9        (4) any purchase by a purchaser if the operator is
10    prohibited by federal or State Constitution, treaty,
11    convention, statute or court decision from collecting the
12    tax from such purchaser;
13        (5) the isolated or occasional sale of parking spaces
14    subject to tax under this Act by a person who does not hold
15    himself out as being engaged (or who does not habitually
16    engage) in selling of parking spaces; and
17        (6) any amounts added to a purchaser's bills because
18    of charges made pursuant to the tax imposed by this Act. If
19    credit is extended, then the amount thereof shall be
20    included only as and when payments are made.
21    "Purchaser" means any person who acquires a parking space
22in a parking area or garage for use for valuable
23consideration.
24    "Use" means the exercise by any person of any right or
25power over, or the enjoyment of, a parking space in a parking
26area or garage subject to tax under this Act.

 

 

10200HB1539sam001- 815 -LRB102 03555 HLH 39048 a

1(Source: P.A. 101-31, eff. 6-28-19.)
 
2
ARTICLE 105. UNEMPLOYMENT BENEFITS

 
3    Section 105-5. The Unemployment Insurance Act is amended
4by changing Sections 401, 403, 703, 1505, 1506.6, and 2100 as
5follows:
 
6    (820 ILCS 405/401)  (from Ch. 48, par. 401)
7    Sec. 401. Weekly Benefit Amount - Dependents' Allowances.
8    A. With respect to any week beginning in a benefit year
9beginning prior to January 4, 2004, an individual's weekly
10benefit amount shall be an amount equal to the weekly benefit
11amount as defined in the provisions of this Act as amended and
12in effect on November 18, 2011.
13    B. 1. With respect to any benefit year beginning on or
14after January 4, 2004 and before January 6, 2008, an
15individual's weekly benefit amount shall be 48% of his or her
16prior average weekly wage, rounded (if not already a multiple
17of one dollar) to the next higher dollar; provided, however,
18that the weekly benefit amount cannot exceed the maximum
19weekly benefit amount and cannot be less than $51. Except as
20otherwise provided in this Section, with respect to any
21benefit year beginning on or after January 6, 2008, an
22individual's weekly benefit amount shall be 47% of his or her
23prior average weekly wage, rounded (if not already a multiple

 

 

10200HB1539sam001- 816 -LRB102 03555 HLH 39048 a

1of one dollar) to the next higher dollar; provided, however,
2that the weekly benefit amount cannot exceed the maximum
3weekly benefit amount and cannot be less than $51. With
4respect to any benefit year beginning on or after January 1,
52023 and before January 1, 2024 July 3, 2022, an individual's
6weekly benefit amount shall be 42.4% of his or her prior
7average weekly wage, rounded (if not already a multiple of one
8dollar) to the next higher dollar; provided, however, that the
9weekly benefit amount cannot exceed the maximum weekly benefit
10amount and cannot be less than $51.
11    2. For the purposes of this subsection:
12    An individual's "prior average weekly wage" means the
13total wages for insured work paid to that individual during
14the 2 calendar quarters of his base period in which such total
15wages were highest, divided by 26. If the quotient is not
16already a multiple of one dollar, it shall be rounded to the
17nearest dollar; however if the quotient is equally near 2
18multiples of one dollar, it shall be rounded to the higher
19multiple of one dollar.
20    "Determination date" means June 1 and December 1 of each
21calendar year except that, for the purposes of this Act only,
22there shall be no June 1 determination date in any year.
23    "Determination period" means, with respect to each June 1
24determination date, the 12 consecutive calendar months ending
25on the immediately preceding December 31 and, with respect to
26each December 1 determination date, the 12 consecutive

 

 

10200HB1539sam001- 817 -LRB102 03555 HLH 39048 a

1calendar months ending on the immediately preceding June 30.
2    "Benefit period" means the 12 consecutive calendar month
3period beginning on the first day of the first calendar month
4immediately following a determination date, except that, with
5respect to any calendar year in which there is a June 1
6determination date, "benefit period" shall mean the 6
7consecutive calendar month period beginning on the first day
8of the first calendar month immediately following the
9preceding December 1 determination date and the 6 consecutive
10calendar month period beginning on the first day of the first
11calendar month immediately following the June 1 determination
12date.
13    "Gross wages" means all the wages paid to individuals
14during the determination period immediately preceding a
15determination date for insured work, and reported to the
16Director by employers prior to the first day of the third
17calendar month preceding that date.
18    "Covered employment" for any calendar month means the
19total number of individuals, as determined by the Director,
20engaged in insured work at mid-month.
21    "Average monthly covered employment" means one-twelfth of
22the sum of the covered employment for the 12 months of a
23determination period.
24    "Statewide average annual wage" means the quotient,
25obtained by dividing gross wages by average monthly covered
26employment for the same determination period, rounded (if not

 

 

10200HB1539sam001- 818 -LRB102 03555 HLH 39048 a

1already a multiple of one cent) to the nearest cent.
2    "Statewide average weekly wage" means the quotient,
3obtained by dividing the statewide average annual wage by 52,
4rounded (if not already a multiple of one cent) to the nearest
5cent. Notwithstanding any provision of this Section to the
6contrary, the statewide average weekly wage for any benefit
7period prior to calendar year 2012 shall be as determined by
8the provisions of this Act as amended and in effect on November
918, 2011. Notwithstanding any provisions of this Section to
10the contrary, the statewide average weekly wage for the
11benefit period of calendar year 2012 shall be $856.55 and for
12each calendar year thereafter, the statewide average weekly
13wage shall be the statewide average weekly wage, as determined
14in accordance with this sentence, for the immediately
15preceding benefit period plus (or minus) an amount equal to
16the percentage change in the statewide average weekly wage, as
17computed in accordance with the first sentence of this
18paragraph, between the 2 immediately preceding benefit
19periods, multiplied by the statewide average weekly wage, as
20determined in accordance with this sentence, for the
21immediately preceding benefit period. However, for purposes of
22the Workers' Compensation Act, the statewide average weekly
23wage will be computed using June 1 and December 1
24determination dates of each calendar year and such
25determination shall not be subject to the limitation of the
26statewide average weekly wage as computed in accordance with

 

 

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1the preceding sentence of this paragraph.
2    With respect to any week beginning in a benefit year
3beginning prior to January 4, 2004, "maximum weekly benefit
4amount" with respect to each week beginning within a benefit
5period shall be as defined in the provisions of this Act as
6amended and in effect on November 18, 2011.
7    With respect to any benefit year beginning on or after
8January 4, 2004 and before January 6, 2008, "maximum weekly
9benefit amount" with respect to each week beginning within a
10benefit period means 48% of the statewide average weekly wage,
11rounded (if not already a multiple of one dollar) to the next
12higher dollar.
13    Except as otherwise provided in this Section, with respect
14to any benefit year beginning on or after January 6, 2008,
15"maximum weekly benefit amount" with respect to each week
16beginning within a benefit period means 47% of the statewide
17average weekly wage, rounded (if not already a multiple of one
18dollar) to the next higher dollar.
19    With respect to any benefit year beginning on or after
20January 1, 2023 and before January 1, 2024 July 3, 2022,
21"maximum weekly benefit amount" with respect to each week
22beginning within a benefit period means 42.4% of the statewide
23average weekly wage, rounded (if not already a multiple of one
24dollar) to the next higher dollar.
25    C. With respect to any week beginning in a benefit year
26beginning prior to January 4, 2004, an individual's

 

 

10200HB1539sam001- 820 -LRB102 03555 HLH 39048 a

1eligibility for a dependent allowance with respect to a
2nonworking spouse or one or more dependent children shall be
3as defined by the provisions of this Act as amended and in
4effect on November 18, 2011.
5    With respect to any benefit year beginning on or after
6January 4, 2004 and before January 6, 2008, an individual to
7whom benefits are payable with respect to any week shall, in
8addition to those benefits, be paid, with respect to such
9week, as follows: in the case of an individual with a
10nonworking spouse, 9% of his or her prior average weekly wage,
11rounded (if not already a multiple of one dollar) to the next
12higher dollar, provided, that the total amount payable to the
13individual with respect to a week shall not exceed 57% of the
14statewide average weekly wage, rounded (if not already a
15multiple of one dollar) to the next higher dollar; and in the
16case of an individual with a dependent child or dependent
17children, 17.2% of his or her prior average weekly wage,
18rounded (if not already a multiple of one dollar) to the next
19higher dollar, provided that the total amount payable to the
20individual with respect to a week shall not exceed 65.2% of the
21statewide average weekly wage, rounded (if not already a
22multiple of one dollar) to the next higher dollar.
23    With respect to any benefit year beginning on or after
24January 6, 2008 and before January 1, 2010, an individual to
25whom benefits are payable with respect to any week shall, in
26addition to those benefits, be paid, with respect to such

 

 

10200HB1539sam001- 821 -LRB102 03555 HLH 39048 a

1week, as follows: in the case of an individual with a
2nonworking spouse, 9% of his or her prior average weekly wage,
3rounded (if not already a multiple of one dollar) to the next
4higher dollar, provided, that the total amount payable to the
5individual with respect to a week shall not exceed 56% of the
6statewide average weekly wage, rounded (if not already a
7multiple of one dollar) to the next higher dollar; and in the
8case of an individual with a dependent child or dependent
9children, 18.2% of his or her prior average weekly wage,
10rounded (if not already a multiple of one dollar) to the next
11higher dollar, provided that the total amount payable to the
12individual with respect to a week shall not exceed 65.2% of the
13statewide average weekly wage, rounded (if not already a
14multiple of one dollar) to the next higher dollar.
15    The additional amount paid pursuant to this subsection in
16the case of an individual with a dependent child or dependent
17children shall be referred to as the "dependent child
18allowance", and the percentage rate by which an individual's
19prior average weekly wage is multiplied pursuant to this
20subsection to calculate the dependent child allowance shall be
21referred to as the "dependent child allowance rate".
22    Except as otherwise provided in this Section, with respect
23to any benefit year beginning on or after January 1, 2010, an
24individual to whom benefits are payable with respect to any
25week shall, in addition to those benefits, be paid, with
26respect to such week, as follows: in the case of an individual

 

 

10200HB1539sam001- 822 -LRB102 03555 HLH 39048 a

1with a nonworking spouse, the greater of (i) 9% of his or her
2prior average weekly wage, rounded (if not already a multiple
3of one dollar) to the next higher dollar, or (ii) $15, provided
4that the total amount payable to the individual with respect
5to a week shall not exceed 56% of the statewide average weekly
6wage, rounded (if not already a multiple of one dollar) to the
7next higher dollar; and in the case of an individual with a
8dependent child or dependent children, the greater of (i) the
9product of the dependent child allowance rate multiplied by
10his or her prior average weekly wage, rounded (if not already a
11multiple of one dollar) to the next higher dollar, or (ii) the
12lesser of $50 or 50% of his or her weekly benefit amount,
13rounded (if not already a multiple of one dollar) to the next
14higher dollar, provided that the total amount payable to the
15individual with respect to a week shall not exceed the product
16of the statewide average weekly wage multiplied by the sum of
1747% plus the dependent child allowance rate, rounded (if not
18already a multiple of one dollar) to the next higher dollar.
19    With respect to any benefit year beginning on or after
20January 1, 2023 and before January 1, 2024 July 3, 2022, an
21individual to whom benefits are payable with respect to any
22week shall, in addition to those benefits, be paid, with
23respect to such week, as follows: in the case of an individual
24with a nonworking spouse, the greater of (i) 9% of his or her
25prior average weekly wage, rounded (if not already a multiple
26of one dollar) to the next higher dollar, or (ii) $15, provided

 

 

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1that the total amount payable to the individual with respect
2to a week shall not exceed 51.4% of the statewide average
3weekly wage, rounded (if not already a multiple of one dollar)
4to the next higher dollar; and in the case of an individual
5with a dependent child or dependent children, the greater of
6(i) the product of the dependent child allowance rate
7multiplied by his or her prior average weekly wage, rounded
8(if not already a multiple of one dollar) to the next higher
9dollar, or (ii) the lesser of $50 or 50% of his or her weekly
10benefit amount, rounded (if not already a multiple of one
11dollar) to the next higher dollar, provided that the total
12amount payable to the individual with respect to a week shall
13not exceed the product of the statewide average weekly wage
14multiplied by the sum of 42.4% plus the dependent child
15allowance rate, rounded (if not already a multiple of one
16dollar) to the next higher dollar.
17    With respect to each benefit year beginning after calendar
18year 2012, the dependent child allowance rate shall be the sum
19of the allowance adjustment applicable pursuant to Section
201400.1 to the calendar year in which the benefit year begins,
21plus the dependent child allowance rate with respect to each
22benefit year beginning in the immediately preceding calendar
23year, except as otherwise provided in this subsection. The
24dependent child allowance rate with respect to each benefit
25year beginning in calendar year 2010 shall be 17.9%. The
26dependent child allowance rate with respect to each benefit

 

 

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1year beginning in calendar year 2011 shall be 17.4%. The
2dependent child allowance rate with respect to each benefit
3year beginning in calendar year 2012 shall be 17.0% and, with
4respect to each benefit year beginning after calendar year
52012, shall not be less than 17.0% or greater than 17.9%.
6    For the purposes of this subsection:
7    "Dependent" means a child or a nonworking spouse.
8    "Child" means a natural child, stepchild, or adopted child
9of an individual claiming benefits under this Act or a child
10who is in the custody of any such individual by court order,
11for whom the individual is supplying and, for at least 90
12consecutive days (or for the duration of the parental
13relationship if it has existed for less than 90 days)
14immediately preceding any week with respect to which the
15individual has filed a claim, has supplied more than one-half
16the cost of support, or has supplied at least 1/4 of the cost
17of support if the individual and the other parent, together,
18are supplying and, during the aforesaid period, have supplied
19more than one-half the cost of support, and are, and were
20during the aforesaid period, members of the same household;
21and who, on the first day of such week (a) is under 18 years of
22age, or (b) is, and has been during the immediately preceding
2390 days, unable to work because of illness or other
24disability: provided, that no person who has been determined
25to be a child of an individual who has been allowed benefits
26with respect to a week in the individual's benefit year shall

 

 

10200HB1539sam001- 825 -LRB102 03555 HLH 39048 a

1be deemed to be a child of the other parent, and no other
2person shall be determined to be a child of such other parent,
3during the remainder of that benefit year.
4    "Nonworking spouse" means the lawful husband or wife of an
5individual claiming benefits under this Act, for whom more
6than one-half the cost of support has been supplied by the
7individual for at least 90 consecutive days (or for the
8duration of the marital relationship if it has existed for
9less than 90 days) immediately preceding any week with respect
10to which the individual has filed a claim, but only if the
11nonworking spouse is currently ineligible to receive benefits
12under this Act by reason of the provisions of Section 500E.
13    An individual who was obligated by law to provide for the
14support of a child or of a nonworking spouse for the aforesaid
15period of 90 consecutive days, but was prevented by illness or
16injury from doing so, shall be deemed to have provided more
17than one-half the cost of supporting the child or nonworking
18spouse for that period.
19(Source: P.A. 101-423, eff. 1-1-20; 101-633, eff. 6-5-20;
20102-671, eff. 11-30-21.)
 
21    (820 ILCS 405/403)  (from Ch. 48, par. 403)
22    Sec. 403. Maximum total amount of benefits.
23    A. With respect to any benefit year beginning prior to
24September 30, 1979, any otherwise eligible individual shall be
25entitled, during such benefit year, to a maximum total amount

 

 

10200HB1539sam001- 826 -LRB102 03555 HLH 39048 a

1of benefits as shall be determined in the manner set forth in
2this Act as amended and in effect on November 9, 1977.
3    B. With respect to any benefit year beginning on or after
4September 30, 1979, except as otherwise provided in this
5Section, any otherwise eligible individual shall be entitled,
6during such benefit year, to a maximum total amount of
7benefits equal to 26 times his or her weekly benefit amount
8plus dependents' allowances, or to the total wages for insured
9work paid to such individual during the individual's base
10period, whichever amount is smaller. With respect to any
11benefit year beginning in calendar year 2012, any otherwise
12eligible individual shall be entitled, during such benefit
13year, to a maximum total amount of benefits equal to 25 times
14his or her weekly benefit amount plus dependents' allowances,
15or to the total wages for insured work paid to such individual
16during the individual's base period, whichever amount is
17smaller. With respect to any benefit year beginning on or
18after January 1, 2023 and before January 1, 2024 July 3, 2022,
19any otherwise eligible individual shall be entitled, during
20such benefit year, to a maximum total amount of benefits equal
21to 24 times his or her weekly benefit amount plus dependents'
22allowances, or to the total wages for insured work paid to such
23individual during the individual's base period, whichever
24amount is smaller.
25(Source: P.A. 101-423, eff. 1-1-20; 102-671, eff. 11-30-21.)
 

 

 

10200HB1539sam001- 827 -LRB102 03555 HLH 39048 a

1    (820 ILCS 405/703)  (from Ch. 48, par. 453)
2    Sec. 703. Reconsideration of findings or determinations.
3The claims adjudicator may reconsider his finding at any time
4within thirteen weeks after the close of the benefit year. He
5may reconsider his determination at any time within one year
6after the last day of the week for which the determination was
7made, except that if the issue is whether or not, by reason of
8a back pay award made by any governmental agency or pursuant to
9arbitration proceedings, or by reason of a payment of wages
10wrongfully withheld by an employing unit, an individual has
11received wages for a week with respect to which he or she has
12received benefits or if the issue is whether or not the
13claimant misstated his earnings for the week, such
14reconsidered determination may be made at any time within 3
15years after the last day of the week, or if the issue is
16whether or not an individual misstated earnings for any week
17beginning on or after March 15, 2020, such reconsidered
18determination may be made at any time within 5 years after the
19last day of the week. No finding or determination shall be
20reconsidered at any time after appeal therefrom has been taken
21pursuant to the provisions of Section 800, except where a case
22has been remanded to the claims adjudicator by a Referee, the
23Director or the Board of Review, and except, further, that if
24an issue as to whether or not the claimant misstated his
25earnings is newly discovered, the determination may be
26reconsidered after and notwithstanding the fact that the

 

 

10200HB1539sam001- 828 -LRB102 03555 HLH 39048 a

1decision upon the appeal has become final. Notice of such
2reconsidered determination or reconsidered finding shall be
3promptly given to the parties entitled to notice of the
4original determination or finding, as the case may be, in the
5same manner as is prescribed therefor, and such reconsidered
6determination or reconsidered finding shall be subject to
7appeal in the same manner and shall be given the same effect as
8is provided for an original determination or finding.
9    The changes made by this amendatory Act of the 102nd
10General Assembly apply retroactively to March 15, 2020.
11(Source: P.A. 92-396, eff. 1-1-02.)
 
12    (820 ILCS 405/1505)  (from Ch. 48, par. 575)
13    Sec. 1505. Adjustment of state experience factor. The
14state experience factor shall be adjusted in accordance with
15the following provisions:
16    A. For calendar years prior to 1988, the state experience
17factor shall be adjusted in accordance with the provisions of
18this Act as amended and in effect on November 18, 2011.
19    B. (Blank).
20    C. For calendar year 1988 and each calendar year
21thereafter, for which the state experience factor is being
22determined.
23        1. For every $50,000,000 (or fraction thereof) by
24    which the adjusted trust fund balance falls below the
25    target balance set forth in this subsection, the state

 

 

10200HB1539sam001- 829 -LRB102 03555 HLH 39048 a

1    experience factor for the succeeding year shall be
2    increased one percent absolute.
3        For every $50,000,000 (or fraction thereof) by which
4    the adjusted trust fund balance exceeds the target balance
5    set forth in this subsection, the state experience factor
6    for the succeeding year shall be decreased by one percent
7    absolute.
8        The target balance in each calendar year prior to 2003
9    is $750,000,000. The target balance in calendar year 2003
10    is $920,000,000. The target balance in calendar year 2004
11    is $960,000,000. The target balance in calendar year 2005
12    and each calendar year thereafter is $1,000,000,000.
13        2. For the purposes of this subsection:
14        "Net trust fund balance" is the amount standing to the
15    credit of this State's account in the unemployment trust
16    fund as of June 30 of the calendar year immediately
17    preceding the year for which a state experience factor is
18    being determined.
19        "Adjusted trust fund balance" is the net trust fund
20    balance minus the sum of the benefit reserves for fund
21    building for July 1, 1987 through June 30 of the year prior
22    to the year for which the state experience factor is being
23    determined. The adjusted trust fund balance shall not be
24    less than zero. If the preceding calculation results in a
25    number which is less than zero, the amount by which it is
26    less than zero shall reduce the sum of the benefit

 

 

10200HB1539sam001- 830 -LRB102 03555 HLH 39048 a

1    reserves for fund building for subsequent years.
2        For the purpose of determining the state experience
3    factor for 1989 and for each calendar year thereafter, the
4    following "benefit reserves for fund building" shall apply
5    for each state experience factor calculation in which that
6    12 month period is applicable:
7            a. For the 12 month period ending on June 30, 1988,
8        the "benefit reserve for fund building" shall be
9        8/104th of the total benefits paid from January 1,
10        1988 through June 30, 1988.
11            b. For the 12 month period ending on June 30, 1989,
12        the "benefit reserve for fund building" shall be the
13        sum of:
14                i. 8/104ths of the total benefits paid from
15            July 1, 1988 through December 31, 1988, plus
16                ii. 4/108ths of the total benefits paid from
17            January 1, 1989 through June 30, 1989.
18            c. For the 12 month period ending on June 30, 1990,
19        the "benefit reserve for fund building" shall be
20        4/108ths of the total benefits paid from July 1, 1989
21        through December 31, 1989.
22            d. For 1992 and for each calendar year thereafter,
23        the "benefit reserve for fund building" for the 12
24        month period ending on June 30, 1991 and for each
25        subsequent 12 month period shall be zero.
26        3. Notwithstanding the preceding provisions of this

 

 

10200HB1539sam001- 831 -LRB102 03555 HLH 39048 a

1    subsection, for calendar years 1988 through 2003, the
2    state experience factor shall not be increased or
3    decreased by more than 15 percent absolute.
4    D. Notwithstanding the provisions of subsection C, the
5adjusted state experience factor:
6        1. Shall be 111 percent for calendar year 1988;
7        2. Shall not be less than 75 percent nor greater than
8    135 percent for calendar years 1989 through 2003; and
9    shall not be less than 75% nor greater than 150% for
10    calendar year 2004 and each calendar year thereafter, not
11    counting any increase pursuant to subsection D-1, D-2, or
12    D-3;
13        3. Shall not be decreased by more than 5 percent
14    absolute for any calendar year, beginning in calendar year
15    1989 and through calendar year 1992, by more than 6%
16    absolute for calendar years 1993 through 1995, by more
17    than 10% absolute for calendar years 1999 through 2003 and
18    by more than 12% absolute for calendar year 2004 and each
19    calendar year thereafter, from the adjusted state
20    experience factor of the calendar year preceding the
21    calendar year for which the adjusted state experience
22    factor is being determined;
23        4. Shall not be increased by more than 15% absolute
24    for calendar year 1993, by more than 14% absolute for
25    calendar years 1994 and 1995, by more than 10% absolute
26    for calendar years 1999 through 2003 and by more than 16%

 

 

10200HB1539sam001- 832 -LRB102 03555 HLH 39048 a

1    absolute for calendar year 2004 and each calendar year
2    thereafter, from the adjusted state experience factor for
3    the calendar year preceding the calendar year for which
4    the adjusted state experience factor is being determined;
5        5. Shall be 100% for calendar years 1996, 1997, and
6    1998.
7    D-1. The adjusted state experience factor for each of
8calendar years 2013 through 2015 shall be increased by 5%
9absolute above the adjusted state experience factor as
10calculated without regard to this subsection. The adjusted
11state experience factor for each of calendar years 2016
12through 2018 shall be increased by 6% absolute above the
13adjusted state experience factor as calculated without regard
14to this subsection. The increase in the adjusted state
15experience factor for calendar year 2018 pursuant to this
16subsection shall not be counted for purposes of applying
17paragraph 3 or 4 of subsection D to the calculation of the
18adjusted state experience factor for calendar year 2019.
19    D-2. (Blank).
20    D-3. The adjusted state experience factor for the portion
21of calendar year 2023 2022 beginning July 3, 2022 shall be
22increased by 16% absolute above the adjusted state experience
23factor as calculated without regard to this subsection. The
24increase in the adjusted state experience factor for the
25portion of calendar year 2023 2022 beginning July 3, 2022
26pursuant to this subsection shall not be counted for purposes

 

 

10200HB1539sam001- 833 -LRB102 03555 HLH 39048 a

1of applying paragraph 3 or 4 of subsection D to the calculation
2of the adjusted state experience factor for calendar year 2024
32023.
4    E. The amount standing to the credit of this State's
5account in the unemployment trust fund as of June 30 shall be
6deemed to include as part thereof (a) any amount receivable on
7that date from any Federal governmental agency, or as a
8payment in lieu of contributions under the provisions of
9Sections 1403 and 1405 B and paragraph 2 of Section 302C, in
10reimbursement of benefits paid to individuals, and (b) amounts
11credited by the Secretary of the Treasury of the United States
12to this State's account in the unemployment trust fund
13pursuant to Section 903 of the Federal Social Security Act, as
14amended, including any such amounts which have been
15appropriated by the General Assembly in accordance with the
16provisions of Section 2100 B for expenses of administration,
17except any amounts which have been obligated on or before that
18date pursuant to such appropriation.
19(Source: P.A. 101-423, eff. 1-1-20; 101-633, eff. 6-5-20;
20102-671, eff. 11-30-21.)
 
21    (820 ILCS 405/1506.6)
22    Sec. 1506.6. Surcharge; specified period. For each
23employer whose contribution rate for calendar year 2023 2022
24is determined pursuant to Section 1500 or 1506.1, in addition
25to the contribution rate established pursuant to Section

 

 

10200HB1539sam001- 834 -LRB102 03555 HLH 39048 a

11506.3, for the portion of calendar year 2022 beginning July
23, 2022, an additional surcharge of 0.325% shall be added to
3the contribution rate. The surcharge established by this
4Section shall be due at the same time as other contributions
5with respect to the quarter are due, as provided in Section
61400. Payments attributable to the surcharge established
7pursuant to this Section shall be contributions and deposited
8into the clearing account.
9(Source: P.A. 101-423, eff. 1-1-20; 101-633, eff. 6-5-20;
10102-671, eff. 11-30-21.)
 
11    (820 ILCS 405/2100)  (from Ch. 48, par. 660)
12    Sec. 2100. Handling of funds - Bond - Accounts.
13    A. All contributions and payments in lieu of contributions
14collected under this Act, including but not limited to fund
15building receipts and receipts attributable to the surcharge
16established pursuant to Section 1506.5, together with any
17interest thereon; all penalties collected pursuant to this
18Act; any property or securities acquired through the use
19thereof; all moneys advanced to this State's account in the
20unemployment trust fund pursuant to the provisions of Title
21XII of the Social Security Act, as amended; all moneys
22directed for transfer from the Master Bond Fund or the Title
23XII Interest Fund to this State's account in the unemployment
24trust fund; all moneys received from the Federal government as
25reimbursements pursuant to Section 204 of the Federal-State

 

 

10200HB1539sam001- 835 -LRB102 03555 HLH 39048 a

1Extended Unemployment Compensation Act of 1970, as amended;
2all moneys credited to this State's account in the
3unemployment trust fund pursuant to Section 903 of the Federal
4Social Security Act, as amended; all administrative fees
5collected from individuals pursuant to Section 900 or from
6employing units pursuant to Section 2206.1; funds directed for
7deposit into the State's account in the Unemployment Trust
8Fund from any other source; and all earnings of such property
9or securities and any interest earned upon any such moneys
10shall be paid or turned over to the Department and held by the
11Director, as ex-officio custodian of the clearing account, the
12unemployment trust fund account and the benefit account, and
13by the State Treasurer, as ex-officio custodian of the special
14administrative account, separate and apart from all public
15moneys or funds of this State, as hereinafter provided. Such
16moneys shall be administered by the Director exclusively for
17the purposes of this Act.
18    No such moneys shall be paid or expended except upon the
19direction of the Director in accordance with such regulations
20as he shall prescribe pursuant to the provisions of this Act.
21    The State Treasurer shall be liable on his general
22official bond for the faithful performance of his duties in
23connection with the moneys in the special administrative
24account provided for under this Act. Such liability on his
25official bond shall exist in addition to the liability upon
26any separate bond given by him. All sums recovered for losses

 

 

10200HB1539sam001- 836 -LRB102 03555 HLH 39048 a

1sustained by the account shall be deposited in that account.
2    The Director shall be liable on his general official bond
3for the faithful performance of his duties in connection with
4the moneys in the clearing account, the benefit account and
5unemployment trust fund account provided for under this Act.
6Such liability on his official bond shall exist in addition to
7the liability upon any separate bond given by him. All sums
8recovered for losses sustained by any one of the accounts
9shall be deposited in the account that sustained such loss.
10    The Treasurer shall maintain for such moneys a special
11administrative account. The Director shall maintain for such
12moneys 3 separate accounts: a clearing account, a benefit
13account, and an unemployment trust fund account. All moneys
14payable under this Act (except moneys requisitioned from this
15State's account in the unemployment trust fund and deposited
16in the benefit account and moneys directed for deposit into
17the Special Programs Fund provided for under Section 2107),
18including but not limited to moneys directed for transfer from
19the Master Bond Fund or the Title XII Interest Fund to this
20State's account in the unemployment trust fund, upon receipt
21thereof, shall be immediately deposited in the clearing
22account; provided, however, that, except as is otherwise
23provided in this Section, interest and penalties shall not be
24deemed a part of the clearing account but shall be transferred
25immediately upon clearance thereof to the special
26administrative account; further provided that an amount not to

 

 

10200HB1539sam001- 837 -LRB102 03555 HLH 39048 a

1exceed $90,000,000 in payments attributable to the surcharge
2established pursuant to Section 1506.5, including any interest
3thereon, shall not be deemed a part of the clearing account but
4shall be transferred immediately upon clearance thereof to the
5Title XII Interest Fund.
6    After clearance thereof, all other moneys in the clearing
7account shall be immediately deposited by the Director with
8the Secretary of the Treasury of the United States of America
9to the credit of the account of this State in the unemployment
10trust fund, established and maintained pursuant to the Federal
11Social Security Act, as amended, except fund building
12receipts, which shall be deposited into the Master Bond Fund.
13The benefit account shall consist of all moneys requisitioned
14from this State's account in the unemployment trust fund. The
15moneys in the benefit account shall be expended in accordance
16with regulations prescribed by the Director and solely for the
17payment of benefits, refunds of contributions, interest and
18penalties under the provisions of the Act, the payment of
19health insurance in accordance with Section 410 of this Act,
20and the transfer or payment of funds to any Federal or State
21agency pursuant to reciprocal arrangements entered into by the
22Director under the provisions of Section 2700E, except that
23moneys credited to this State's account in the unemployment
24trust fund pursuant to Section 903 of the Federal Social
25Security Act, as amended, shall be used exclusively as
26provided in subsection B. For purposes of this Section only,

 

 

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1to the extent allowed by applicable legal requirements, the
2payment of benefits includes but is not limited to the payment
3of principal on any bonds issued pursuant to the Illinois
4Unemployment Insurance Trust Fund Financing Act, exclusive of
5any interest or administrative expenses in connection with the
6bonds. The Director shall, from time to time, requisition from
7the unemployment trust fund such amounts, not exceeding the
8amounts standing to the State's account therein, as he deems
9necessary solely for the payment of such benefits, refunds,
10and funds, for a reasonable future period. The Director, as
11ex-officio custodian of the benefit account, which shall be
12kept separate and apart from all other public moneys, shall
13issue payment of such benefits, refunds, health insurance and
14funds solely from the moneys so received into the benefit
15account. However, after January 1, 1987, no payment shall be
16drawn on such benefit account unless at the time of drawing
17there is sufficient money in the account to make the payment.
18The Director shall retain in the clearing account an amount of
19interest and penalties equal to the amount of interest and
20penalties to be refunded from the benefit account. After
21clearance thereof, the amount so retained shall be immediately
22deposited by the Director, as are all other moneys in the
23clearing account, with the Secretary of the Treasury of the
24United States. If, at any time, an insufficient amount of
25interest and penalties is available for retention in the
26clearing account, no refund of interest or penalties shall be

 

 

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1made from the benefit account until a sufficient amount is
2available for retention and is so retained, or until the State
3Treasurer, upon the direction of the Director, transfers to
4the Director a sufficient amount from the special
5administrative account, for immediate deposit in the benefit
6account.
7    Any balance of moneys requisitioned from the unemployment
8trust fund which remains unclaimed or unpaid in the benefit
9account after the expiration of the period for which such sums
10were requisitioned shall either be deducted from estimates of
11and may be utilized for authorized expenditures during
12succeeding periods, or, in the discretion of the Director,
13shall be redeposited with the Secretary of the Treasury of the
14United States to the credit of the State's account in the
15unemployment trust fund.
16    Moneys in the clearing, benefit and special administrative
17accounts shall not be commingled with other State funds but
18they shall be deposited as required by law and maintained in
19separate accounts on the books of a savings and loan
20association or bank.
21    No bank or savings and loan association shall receive
22public funds as permitted by this Section, unless it has
23complied with the requirements established pursuant to Section
246 of "An Act relating to certain investments of public funds by
25public agencies", approved July 23, 1943, as now or hereafter
26amended.

 

 

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1    B. Moneys credited to the account of this State in the
2unemployment trust fund by the Secretary of the Treasury of
3the United States pursuant to Section 903 of the Social
4Security Act may be requisitioned from this State's account
5and used as authorized by Section 903. Any interest required
6to be paid on advances under Title XII of the Social Security
7Act shall be paid in a timely manner and shall not be paid,
8directly or indirectly, by an equivalent reduction in
9contributions or payments in lieu of contributions from
10amounts in this State's account in the unemployment trust
11fund. Such moneys may be requisitioned and used for the
12payment of expenses incurred for the administration of this
13Act, but only pursuant to a specific appropriation by the
14General Assembly and only if the expenses are incurred and the
15moneys are requisitioned after the enactment of an
16appropriation law which:
17        1. Specifies the purpose or purposes for which such
18    moneys are appropriated and the amount or amounts
19    appropriated therefor;
20        2. Limits the period within which such moneys may be
21    obligated to a period ending not more than 2 years after
22    the date of the enactment of the appropriation law; and
23        3. Limits the amount which may be obligated during any
24    fiscal year to an amount which does not exceed the amount
25    by which (a) the aggregate of the amounts transferred to
26    the account of this State pursuant to Section 903 of the

 

 

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1    Social Security Act exceeds (b) the aggregate of the
2    amounts used by this State pursuant to this Act and
3    charged against the amounts transferred to the account of
4    this State.
5    For purposes of paragraph (3) above, amounts obligated for
6administrative purposes pursuant to an appropriation shall be
7chargeable against transferred amounts at the exact time the
8obligation is entered into. The appropriation, obligation, and
9expenditure or other disposition of money appropriated under
10this subsection shall be accounted for in accordance with
11standards established by the United States Secretary of Labor.
12    Moneys appropriated as provided herein for the payment of
13expenses of administration shall be requisitioned by the
14Director as needed for the payment of obligations incurred
15under such appropriation. Upon requisition, such moneys shall
16be deposited with the State Treasurer, who shall hold such
17moneys, as ex-officio custodian thereof, in accordance with
18the requirements of Section 2103 and, upon the direction of
19the Director, shall make payments therefrom pursuant to such
20appropriation. Moneys so deposited shall, until expended,
21remain a part of the unemployment trust fund and, if any will
22not be expended, shall be returned promptly to the account of
23this State in the unemployment trust fund.
24    C. The Governor is authorized to apply to the United
25States Secretary of Labor for an advance or advances to this
26State's account in the unemployment trust fund pursuant to the

 

 

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1conditions set forth in Title XII of the Federal Social
2Security Act, as amended. The State's account in the
3unemployment trust fund is authorized to receive
4appropriations of State funds from other State accounts to
5repay any such advance or advances. The amount of any such
6advance may be repaid from this State's account in the
7unemployment trust fund.
8    D. The Director shall annually on or before the first day
9of March report in writing to the Employment Security Advisory
10Board concerning the deposits into and expenditures from this
11State's account in the Unemployment Trust Fund.
12    E. The changes made by this amendatory Act of the 102nd
13General Assembly to subsection A and subsection C clarify
14authority already provided by law.
15(Source: P.A. 97-1, eff. 3-31-11; 97-621, eff. 11-18-11;
1697-791, eff. 1-1-13.)
 
17
ARTICLE 999. EFFECTIVE DATE

 
18    Section 999-99. Effective date. This Act takes effect upon
19becoming law, except that Article 100 takes effect on July 1,
202023.".