102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB4164

 

Introduced 2/9/2022, by Sen. Donald P. DeWitte

 

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

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


LRB102 26254 HLH 36122 b

 

 

A BILL FOR

 

SB4164LRB102 26254 HLH 36122 b

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

 

 

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after July 1, 2001 (the
7effective date of Public Act 92-35), however, an entity
8otherwise eligible for this exemption shall not make tax-free
9purchases unless it has an active identification number issued
10by the Department.
11    (4) Personal property purchased by a governmental body, by
12a corporation, society, association, foundation, or
13institution organized and operated exclusively for charitable,
14religious, or educational purposes, or by a not-for-profit
15corporation, society, association, foundation, institution, or
16organization that has no compensated officers or employees and
17that is organized and operated primarily for the recreation of
18persons 55 years of age or older. A limited liability company
19may qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes. On and after July 1,
221987, however, no entity otherwise eligible for this exemption
23shall make tax-free purchases unless it has an active
24exemption identification number issued by the Department.
25    (5) Until July 1, 2003, a passenger car that is a
26replacement vehicle to the extent that the purchase price of

 

 

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

 

 

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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 (11). 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.

 

 

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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 (11) is exempt from the
8provisions of Section 3-90.
9    (12) 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    (13) Proceeds of mandatory service charges separately

 

 

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1stated on customers' bills for the purchase and consumption of
2food and beverages purchased at retail from a retailer, to the
3extent that the proceeds of the service charge are in fact
4turned over as tips or as a substitute for tips to the
5employees who participate directly in preparing, serving,
6hosting or cleaning up the food or beverage function with
7respect to which the service charge is imposed.
8    (14) 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    (15) 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    (16) 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

 

 

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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    (17) Until July 1, 2003, distillation machinery and
9equipment, sold as a unit or kit, assembled or installed by the
10retailer, certified by the user to be used only for the
11production of ethyl alcohol that will be used for consumption
12as motor fuel or as a component of motor fuel for the personal
13use of the user, and not subject to sale or resale.
14    (18) Manufacturing and assembling machinery and equipment
15used primarily in the process of manufacturing or assembling
16tangible personal property for wholesale or retail sale or
17lease, whether that sale or lease is made directly by the
18manufacturer or by some other person, whether the materials
19used in the process are owned by the manufacturer or some other
20person, or whether that sale or lease is made apart from or as
21an incident to the seller's engaging in the service occupation
22of producing machines, tools, dies, jigs, patterns, gauges, or
23other similar items of no commercial value on special order
24for a particular purchaser. The exemption provided by this
25paragraph (18) includes production related tangible personal
26property, as defined in Section 3-50, purchased on or after

 

 

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1July 1, 2019. The exemption provided by this paragraph (18)
2does not include machinery and equipment used in (i) the
3generation of electricity for wholesale or retail sale; (ii)
4the generation or treatment of natural or artificial gas for
5wholesale or retail sale that is delivered to customers
6through pipes, pipelines, or mains; or (iii) the treatment of
7water for wholesale or retail sale that is delivered to
8customers through pipes, pipelines, or mains. The provisions
9of Public Act 98-583 are declaratory of existing law as to the
10meaning and scope of this exemption. Beginning on July 1,
112017, the exemption provided by this paragraph (18) includes,
12but is not limited to, graphic arts machinery and equipment,
13as defined in paragraph (6) of this Section.
14    (19) Personal property delivered to a purchaser or
15purchaser's donee inside Illinois when the purchase order for
16that personal property was received by a florist located
17outside Illinois who has a florist located inside Illinois
18deliver the personal property.
19    (20) Semen used for artificial insemination of livestock
20for direct agricultural production.
21    (21) Horses, or interests in horses, registered with and
22meeting the requirements of any of the Arabian Horse Club
23Registry of America, Appaloosa Horse Club, American Quarter
24Horse Association, United States Trotting Association, or
25Jockey Club, as appropriate, used for purposes of breeding or
26racing for prizes. This item (21) is exempt from the

 

 

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1provisions of Section 3-90, and the exemption provided for
2under this item (21) applies for all periods beginning May 30,
31995, but no claim for credit or refund is allowed on or after
4January 1, 2008 for such taxes paid during the period
5beginning May 30, 2000 and ending on January 1, 2008.
6    (22) 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 Service Use Tax Act, as
18the case may be, based on the fair market value of the property
19at the time the non-qualifying use occurs. No lessor shall
20collect or attempt to collect an amount (however designated)
21that purports to reimburse that lessor for the tax imposed by
22this Act or the Service Use Tax Act, as the case may be, if the
23tax has 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    (23) 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 sales tax exemption identification
8number by the Department under Section 1g of the Retailers'
9Occupation Tax Act. If the property is leased in a manner that
10does not qualify for this exemption or used in any other
11non-exempt manner, the lessor shall be liable for the tax
12imposed under this Act or the Service Use Tax Act, as the case
13may be, based on the fair market value of the property at the
14time the non-qualifying use occurs. No lessor shall collect or
15attempt to collect an amount (however designated) that
16purports to reimburse that lessor for the tax imposed by this
17Act or the Service Use Tax Act, as the case may be, if the tax
18has not been paid by the lessor. If a lessor improperly
19collects any such amount from the lessee, the lessee shall
20have a legal right to claim a refund of that amount from the
21lessor. If, however, that amount is not refunded to the lessee
22for any reason, the lessor is liable to pay that amount to the
23Department.
24    (24) 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

 

 

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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    (25) 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    (26) Beginning July 1, 1999, game or game birds purchased
22at a "game breeding and hunting preserve area" as that term is
23used in the Wildlife Code. This paragraph is exempt from the
24provisions of Section 3-90.
25    (27) A motor vehicle, as that term is defined in Section
261-146 of the Illinois Vehicle Code, that is donated to a

 

 

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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    (28) 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

 

 

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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 3-90.
6    (29) 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 3-90.
16    (30) Beginning January 1, 2001 and through June 30, 2016,
17food for human consumption that is to be consumed off the
18premises where it is sold (other than alcoholic beverages,
19soft drinks, and food that has been prepared for immediate
20consumption) and prescription and nonprescription medicines,
21drugs, medical appliances, and insulin, urine testing
22materials, syringes, and needles used by diabetics, for human
23use, when purchased for use by a person receiving medical
24assistance under Article V of the Illinois Public Aid Code who
25resides in a licensed long-term care facility, as defined in
26the Nursing Home Care Act, or in a licensed facility as defined

 

 

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

 

 

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1Section 3-90.
2    (32) Beginning on August 2, 2001 (the effective date of
3Public Act 92-227), personal property purchased by a lessor
4who leases the property, under a lease of one year or longer
5executed or in effect at the time the lessor would otherwise be
6subject to the tax imposed by this Act, to a governmental body
7that has been issued an active sales tax exemption
8identification number by the Department under Section 1g of
9the Retailers' Occupation Tax Act. If the property is leased
10in a manner that does not qualify for this exemption or used in
11any other nonexempt manner, the lessor shall be liable for the
12tax imposed under this Act or the Service Use Tax Act, as the
13case may be, based on the fair market value of the property at
14the time the nonqualifying use occurs. No lessor shall collect
15or attempt to collect an amount (however designated) that
16purports to reimburse that lessor for the tax imposed by this
17Act or the Service Use Tax Act, as the case may be, if the tax
18has not been paid by the lessor. If a lessor improperly
19collects any such amount from the lessee, the lessee shall
20have a legal right to claim a refund of that amount from the
21lessor. If, however, that amount is not refunded to the lessee
22for any reason, the lessor is liable to pay that amount to the
23Department. This paragraph is exempt from the provisions of
24Section 3-90.
25    (33) On and after July 1, 2003 and through June 30, 2004,
26the use in this State of motor vehicles of the second division

 

 

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1with a gross vehicle weight in excess of 8,000 pounds and that
2are subject to the commercial distribution fee imposed under
3Section 3-815.1 of the Illinois Vehicle Code. Beginning on
4July 1, 2004 and through June 30, 2005, the use in this State
5of motor vehicles of the second division: (i) with a gross
6vehicle weight rating in excess of 8,000 pounds; (ii) that are
7subject to the commercial distribution fee imposed under
8Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
9are primarily used for commercial purposes. Through June 30,
102005, this exemption applies to repair and replacement parts
11added after the initial purchase of such a motor vehicle if
12that motor vehicle is used in a manner that would qualify for
13the rolling stock exemption otherwise provided for in this
14Act. For purposes of this paragraph, the term "used for
15commercial purposes" means the transportation of persons or
16property in furtherance of any commercial or industrial
17enterprise, whether for-hire or not.
18    (34) Beginning January 1, 2008, tangible personal property
19used in the construction or maintenance of a community water
20supply, as defined under Section 3.145 of the Environmental
21Protection Act, that is operated by a not-for-profit
22corporation that holds a valid water supply permit issued
23under Title IV of the Environmental Protection Act. This
24paragraph is exempt from the provisions of Section 3-90.
25    (35) Beginning January 1, 2010 and continuing through
26December 31, 2024, materials, parts, equipment, components,

 

 

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1and furnishings incorporated into or upon an aircraft as part
2of the modification, refurbishment, completion, replacement,
3repair, or maintenance of the aircraft. This exemption
4includes consumable supplies used in the modification,
5refurbishment, completion, replacement, repair, and
6maintenance of aircraft, but excludes any materials, parts,
7equipment, components, and consumable supplies used in the
8modification, replacement, repair, and maintenance of aircraft
9engines or power plants, whether such engines or power plants
10are installed or uninstalled upon any such aircraft.
11"Consumable supplies" include, but are not limited to,
12adhesive, tape, sandpaper, general purpose lubricants,
13cleaning solution, latex gloves, and protective films. This
14exemption applies only to the use of qualifying tangible
15personal property by persons who modify, refurbish, complete,
16repair, replace, or maintain aircraft and who (i) hold an Air
17Agency Certificate and are empowered to operate an approved
18repair station by the Federal Aviation Administration, (ii)
19have a Class IV Rating, and (iii) conduct operations in
20accordance with Part 145 of the Federal Aviation Regulations.
21The exemption does not include aircraft operated by a
22commercial air carrier providing scheduled passenger air
23service pursuant to authority issued under Part 121 or Part
24129 of the Federal Aviation Regulations. The changes made to
25this paragraph (35) by Public Act 98-534 are declarative of
26existing law. It is the intent of the General Assembly that the

 

 

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1exemption under this paragraph (35) applies continuously from
2January 1, 2010 through December 31, 2024; however, no claim
3for credit or refund is allowed for taxes paid as a result of
4the disallowance of this exemption on or after January 1, 2015
5and prior to the effective date of this amendatory Act of the
6101st General Assembly.
7    (36) Tangible personal property purchased by a
8public-facilities corporation, as described in Section
911-65-10 of the Illinois Municipal Code, for purposes of
10constructing or furnishing a municipal convention hall, but
11only if the legal title to the municipal convention hall is
12transferred to the municipality without any further
13consideration by or on behalf of the municipality at the time
14of the completion of the municipal convention hall or upon the
15retirement or redemption of any bonds or other debt
16instruments issued by the public-facilities corporation in
17connection with the development of the municipal convention
18hall. This exemption includes existing public-facilities
19corporations as provided in Section 11-65-25 of the Illinois
20Municipal Code. This paragraph is exempt from the provisions
21of Section 3-90.
22    (37) Beginning January 1, 2017 and through December 31,
232026, menstrual pads, tampons, and menstrual cups.
24    (38) Merchandise that is subject to the Rental Purchase
25Agreement Occupation and Use Tax. The purchaser must certify
26that the item is purchased to be rented subject to a rental

 

 

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1purchase agreement, as defined in the Rental Purchase
2Agreement Act, and provide proof of registration under the
3Rental Purchase Agreement Occupation and Use Tax Act. This
4paragraph is exempt from the provisions of Section 3-90.
5    (39) Tangible personal property purchased by a purchaser
6who is exempt from the tax imposed by this Act by operation of
7federal law. This paragraph is exempt from the provisions of
8Section 3-90.
9    (40) 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 Public Act 101-31 been in effect may apply for and
18obtain an exemption for subsequent purchases of computer
19equipment or enabling software purchased or leased to upgrade,
20supplement, or replace computer equipment or enabling software
21purchased or leased in the original investment that would have
22qualified.
23    The Department of Commerce and Economic Opportunity shall
24grant a certificate of exemption under this item (40) to
25qualified data centers as defined by Section 605-1025 of the
26Department of Commerce and Economic Opportunity Law of the

 

 

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1Civil Administrative Code of Illinois.
2    For the purposes of this item (40):
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

 

 

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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 (40) is exempt from the provisions of Section
93-90.
10    (41) Beginning July 1, 2022, food for human consumption
11that is to be consumed off the premises where it is sold (other
12than alcoholic beverages, food consisting of or infused with
13adult use cannabis, soft drinks, and food that has been
14prepared for immediate consumption) and prescription and
15nonprescription medicines, drugs, medical appliances, products
16classified as Class III medical devices by the United States
17Food and Drug Administration that are used for cancer
18treatment pursuant to a prescription, as well as any
19accessories and components related to those devices,
20modifications to a motor vehicle for the purpose of rendering
21it usable by a person with a disability, and insulin, blood
22sugar testing materials, syringes, and needles used by human
23diabetics. This item (41) is exempt from the provisions of
24Section 3-90.
25(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
26101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.

 

 

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

 

 

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1Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2the Use Tax Act, the tax is imposed at the rate of 1.25%.
3    Beginning on August 6, 2010 through August 15, 2010, with
4respect to sales tax holiday items as defined in Section 3-6 of
5this Act, the tax is imposed at the rate of 1.25%.
6    With respect to gasohol, the tax imposed by this Act
7applies to (i) 70% of the proceeds of sales made on or after
8January 1, 1990, and before July 1, 2003, (ii) 80% of the
9proceeds of sales made on or after July 1, 2003 and on or
10before July 1, 2017, and (iii) 100% of the proceeds of sales
11made thereafter. If, at any time, however, the tax under this
12Act on sales of gasohol is imposed at the rate of 1.25%, then
13the tax imposed by this Act applies to 100% of the proceeds of
14sales of gasohol made during that time.
15    With respect to majority blended ethanol fuel, the tax
16imposed by this Act does not apply to the proceeds of sales
17made on or after July 1, 2003 and on or before December 31,
182023 but applies to 100% of the proceeds of sales made
19thereafter.
20    With respect to biodiesel blends with no less than 1% and
21no more than 10% biodiesel, the tax imposed by this Act applies
22to (i) 80% of the proceeds of sales made on or after July 1,
232003 and on or before December 31, 2018 and (ii) 100% of the
24proceeds of sales made thereafter. If, at any time, however,
25the tax under this Act on sales of biodiesel blends with no
26less than 1% and no more than 10% biodiesel is imposed at the

 

 

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1rate of 1.25%, then the tax imposed by this Act applies to 100%
2of the proceeds of sales of biodiesel blends with no less than
31% and no more than 10% biodiesel made during that time.
4    With respect to 100% biodiesel and biodiesel blends with
5more than 10% but no more than 99% biodiesel, the tax imposed
6by this Act does not apply to the proceeds of sales made on or
7after July 1, 2003 and on or before December 31, 2023 but
8applies to 100% of the proceeds of sales made thereafter.
9    Until July 1, 2022, with With respect to food for human
10consumption that is to be consumed off the premises where it is
11sold (other than alcoholic beverages, food consisting of or
12infused with adult use cannabis, soft drinks, and food that
13has been prepared for immediate consumption) and prescription
14and nonprescription medicines, drugs, medical appliances,
15products classified as Class III medical devices by the United
16States Food and Drug Administration that are used for cancer
17treatment pursuant to a prescription, as well as any
18accessories and components related to those devices,
19modifications to a motor vehicle for the purpose of rendering
20it usable by a person with a disability, and insulin, blood
21sugar testing materials, syringes, and needles used by human
22diabetics, the tax is imposed at the rate of 1%. Beginning on
23July 1, 2022, items that had been subject to a 1% rate of tax
24under this paragraph shall be exempt as provided in item (41)
25of Section 3-5. For the purposes of this Section, until
26September 1, 2009: the term "soft drinks" means any complete,

 

 

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1finished, ready-to-use, non-alcoholic drink, whether
2carbonated or not, including but not limited to soda water,
3cola, fruit juice, vegetable juice, carbonated water, and all
4other preparations commonly known as soft drinks of whatever
5kind or description that are contained in any closed or sealed
6bottle, can, carton, or container, regardless of size; but
7"soft drinks" does not include coffee, tea, non-carbonated
8water, infant formula, milk or milk products as defined in the
9Grade A Pasteurized Milk and Milk Products Act, or drinks
10containing 50% or more natural fruit or 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

 

 

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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

 

 

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1    list of those ingredients contained in the compound,
2    substance or preparation.
3    Beginning on the effective date of this amendatory Act of
4the 98th General Assembly, "prescription and nonprescription
5medicines and drugs" includes medical cannabis purchased from
6a registered dispensing organization under the Compassionate
7Use of Medical Cannabis 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 purchased at retail from a
14retailer is acquired outside Illinois and used outside
15Illinois before being brought to Illinois for use here and is
16taxable under this Act, the "selling price" on which the tax is
17computed shall be reduced by an amount that represents a
18reasonable allowance 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.)
 
22    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
23    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
24and trailers that are required to be registered with an agency
25of this State, each retailer required or authorized to collect

 

 

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1the tax imposed by this Act shall pay to the Department the
2amount of such tax (except as otherwise provided) at the time
3when he is required to file his return for the period during
4which such tax was collected, less a discount of 2.1% prior to
5January 1, 1990, and 1.75% on and after January 1, 1990, or $5
6per calendar year, whichever is greater, which is allowed to
7reimburse the retailer for expenses incurred in collecting the
8tax, keeping records, preparing and filing returns, remitting
9the tax and supplying data to the Department on request. The
10discount under this Section is not allowed for the 1.25%
11portion of taxes paid on aviation fuel that is subject to the
12revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1347133. In the case of retailers who report and pay the tax on a
14transaction by transaction basis, as provided in this Section,
15such discount shall be taken with each such tax remittance
16instead of when such retailer files his periodic return. The
17discount allowed under this Section is allowed only for
18returns that are filed in the manner required by this Act. The
19Department may disallow the discount for retailers whose
20certificate of registration is revoked at the time the return
21is filed, but only if the Department's decision to revoke the
22certificate of registration has become final. A retailer need
23not remit that part of any tax collected by him to the extent
24that he is required to remit and does remit the tax imposed by
25the Retailers' Occupation Tax Act, with respect to the sale of
26the same property.

 

 

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1    Where such tangible personal property is sold under a
2conditional sales contract, or under any other form of sale
3wherein the payment of the principal sum, or a part thereof, is
4extended beyond the close of the period for which the return is
5filed, the retailer, in collecting the tax (except as to motor
6vehicles, watercraft, aircraft, and trailers that are required
7to be registered with an agency of this State), may collect for
8each tax return period, only the tax applicable to that part of
9the selling price actually received during such tax return
10period.
11    Except as provided in this Section, on or before the
12twentieth day of each calendar month, such retailer shall file
13a return for the preceding calendar month. Such return shall
14be filed on forms prescribed by the Department and shall
15furnish such information as the Department may reasonably
16require. On and after January 1, 2018, except for returns for
17motor vehicles, watercraft, aircraft, and trailers that are
18required to be registered with an agency of this State, with
19respect to retailers whose annual gross receipts average
20$20,000 or more, all returns required to be filed pursuant to
21this Act shall be filed electronically. Retailers who
22demonstrate that they do not have access to the Internet or
23demonstrate hardship in filing electronically may petition the
24Department to waive the electronic filing requirement.
25    The Department may require returns to be filed on a
26quarterly basis. If so required, a return for each calendar

 

 

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

 

 

SB4164- 31 -LRB102 26254 HLH 36122 b

1return shall be as otherwise provided in this Section.
2Notwithstanding any other provisions of this Act to the
3contrary, retailers collecting tax on aviation fuel shall file
4all aviation fuel tax returns and shall make all aviation fuel
5tax payments by electronic means in the manner and form
6required by the Department. For purposes of this Section,
7"aviation fuel" means jet fuel and aviation gasoline.
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    Notwithstanding any other provision of this Act to the
13contrary, retailers subject to tax on cannabis shall file all
14cannabis tax returns and shall make all cannabis tax payments
15by electronic means in the manner and form required by the
16Department.
17    Beginning October 1, 1993, a taxpayer who has an average
18monthly tax liability of $150,000 or more shall make all
19payments required by rules of the Department by electronic
20funds transfer. Beginning October 1, 1994, a taxpayer who has
21an average monthly tax liability of $100,000 or more shall
22make all payments required by rules of the Department by
23electronic funds transfer. Beginning October 1, 1995, a
24taxpayer who has an average monthly tax liability of $50,000
25or more shall make all payments required by rules of the
26Department by electronic funds transfer. Beginning October 1,

 

 

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12000, a taxpayer who has an annual tax liability of $200,000 or
2more shall make all payments required by rules of the
3Department by electronic funds transfer. The term "annual tax
4liability" shall be the sum of the taxpayer's liabilities
5under this Act, and under all other State and local occupation
6and use tax laws administered by the Department, for the
7immediately preceding calendar year. The term "average monthly
8tax liability" means the sum of the taxpayer's liabilities
9under this Act, and under all other State and local occupation
10and use tax laws administered by the Department, for the
11immediately preceding calendar year divided by 12. Beginning
12on October 1, 2002, a taxpayer who has a tax liability in the
13amount set forth in subsection (b) of Section 2505-210 of the
14Department of Revenue Law shall make all payments required by
15rules of the Department by electronic funds transfer.
16    Before August 1 of each year beginning in 1993, the
17Department shall notify all taxpayers required to make
18payments by electronic funds transfer. All taxpayers required
19to make payments by electronic funds transfer shall make those
20payments for a minimum of one year beginning on October 1.
21    Any taxpayer not required to make payments by electronic
22funds transfer may make payments by electronic funds transfer
23with the permission of the Department.
24    All taxpayers required to make payment by electronic funds
25transfer and any taxpayers authorized to voluntarily make
26payments by electronic funds transfer shall make those

 

 

SB4164- 33 -LRB102 26254 HLH 36122 b

1payments in the manner authorized by the Department.
2    The Department shall adopt such rules as are necessary to
3effectuate a program of electronic funds transfer and the
4requirements of this Section.
5    Before October 1, 2000, if the taxpayer's average monthly
6tax liability to the Department under this Act, the Retailers'
7Occupation Tax Act, the Service Occupation Tax Act, the
8Service Use Tax Act was $10,000 or more during the preceding 4
9complete calendar quarters, he shall file a return with the
10Department each month by the 20th day of the month next
11following the month during which such tax liability is
12incurred and shall make payments to the Department on or
13before the 7th, 15th, 22nd and last day of the month during
14which such liability is incurred. On and after October 1,
152000, if the taxpayer's average monthly tax liability to the
16Department under this Act, the Retailers' Occupation Tax Act,
17the Service Occupation Tax Act, and the Service Use Tax 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

 

 

SB4164- 34 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 35 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 36 -LRB102 26254 HLH 36122 b

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. If any such quarter monthly payment is
11not paid at the time or in the amount required by this Section,
12then the taxpayer shall be liable for penalties and interest
13on the difference between the minimum amount due and the
14amount of such quarter monthly payment actually and timely
15paid, except insofar as the taxpayer has previously made
16payments for that month to the Department in excess of the
17minimum payments previously due as provided in this Section.
18The Department shall make reasonable rules and regulations to
19govern the quarter monthly payment amount and quarter monthly
20payment dates for taxpayers who file on other than a calendar
21monthly basis.
22    If any such payment provided for in this Section exceeds
23the taxpayer's liabilities under this Act, the Retailers'
24Occupation Tax Act, the Service Occupation Tax Act and the
25Service Use Tax Act, as shown by an original monthly return,
26the Department shall issue to the taxpayer a credit memorandum

 

 

SB4164- 37 -LRB102 26254 HLH 36122 b

1no later than 30 days after the date of payment, which
2memorandum may be submitted by the taxpayer to the Department
3in payment of tax liability subsequently to be remitted by the
4taxpayer to the Department or be assigned by the taxpayer to a
5similar taxpayer under this Act, the Retailers' Occupation Tax
6Act, the Service Occupation Tax Act or the Service Use Tax Act,
7in accordance with reasonable rules and regulations to be
8prescribed by the Department, except that if such excess
9payment is shown on an original monthly return and is made
10after December 31, 1986, no credit memorandum shall be issued,
11unless requested by the taxpayer. If no such request is made,
12the taxpayer may credit such excess payment against tax
13liability subsequently to be remitted by the taxpayer to the
14Department under this Act, the Retailers' Occupation Tax Act,
15the Service Occupation Tax Act or the Service Use Tax Act, in
16accordance with reasonable rules and regulations prescribed by
17the Department. If the Department subsequently determines that
18all or any part of the credit taken was not actually due to the
19taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
20be reduced by 2.1% or 1.75% of the difference between the
21credit taken and that actually due, and the taxpayer shall be
22liable for penalties and interest on such difference.
23    If the retailer is otherwise required to file a monthly
24return and if the retailer's average monthly tax liability to
25the Department does not exceed $200, the Department may
26authorize his returns to be filed on a quarter annual basis,

 

 

SB4164- 38 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 39 -LRB102 26254 HLH 36122 b

1Section, every retailer selling this kind of tangible personal
2property shall file, with the Department, upon a form to be
3prescribed and supplied by the Department, a separate return
4for each such item of tangible personal property which the
5retailer sells, except that if, in the same transaction, (i) a
6retailer of aircraft, watercraft, motor vehicles or trailers
7transfers more than one aircraft, watercraft, motor vehicle or
8trailer to another aircraft, watercraft, motor vehicle or
9trailer retailer for the purpose of resale or (ii) a retailer
10of aircraft, watercraft, motor vehicles, or trailers transfers
11more than one aircraft, watercraft, motor vehicle, or trailer
12to a purchaser for use as a qualifying rolling stock as
13provided in Section 3-55 of this Act, then that seller may
14report the transfer of all the aircraft, watercraft, motor
15vehicles or trailers involved in that transaction to the
16Department on the same uniform invoice-transaction reporting
17return form. For purposes of this Section, "watercraft" means
18a Class 2, Class 3, or Class 4 watercraft as defined in Section
193-2 of the Boat Registration and Safety Act, a personal
20watercraft, or any boat equipped with an inboard motor.
21    In addition, with respect to motor vehicles, watercraft,
22aircraft, and trailers that are required to be registered with
23an agency of this State, every person who is engaged in the
24business of leasing or renting such items and who, in
25connection with such business, sells any such item to a
26retailer for the purpose of resale is, notwithstanding any

 

 

SB4164- 40 -LRB102 26254 HLH 36122 b

1other provision of this Section to the contrary, authorized to
2meet the return-filing requirement of this Act by reporting
3the transfer of all the aircraft, watercraft, motor vehicles,
4or trailers transferred for resale during a month to the
5Department on the same uniform invoice-transaction reporting
6return form on or before the 20th of the month following the
7month in which the transfer takes place. Notwithstanding any
8other provision of this Act to the contrary, all returns filed
9under this paragraph must be filed by electronic means in the
10manner and form as required by the Department.
11    The transaction reporting return in the case of motor
12vehicles or trailers that are required to be registered with
13an agency of this State, shall be the same document as the
14Uniform Invoice referred to in Section 5-402 of the Illinois
15Vehicle Code and must show the name and address of the seller;
16the name and address of the purchaser; the amount of the
17selling price including the amount allowed by the retailer for
18traded-in property, if any; the amount allowed by the retailer
19for the traded-in tangible personal property, if any, to the
20extent to which Section 2 of this Act allows an exemption for
21the value of traded-in property; the balance payable after
22deducting such trade-in allowance from the total selling
23price; the amount of tax due from the retailer with respect to
24such transaction; the amount of tax collected from the
25purchaser by the retailer on such transaction (or satisfactory
26evidence that such tax is not due in that particular instance,

 

 

SB4164- 41 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 42 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 43 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 44 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 45 -LRB102 26254 HLH 36122 b

1with the Department under separate registration under this
2Act, such retailer may not file each return that is due as a
3single return covering all such registered businesses, but
4shall file separate returns for each such registered business.
5    Beginning January 1, 1990 and until August 1, 2022, each
6month the Department shall pay into the State and Local Sales
7Tax Reform Fund, a special fund in the State Treasury which is
8hereby created, the net revenue realized for the preceding
9month from the 1% tax imposed under this Act.
10    Beginning August 1, 2022, the State Comptroller shall
11order transferred and the State Treasurer shall transfer from
12the General Revenue Fund to the State and Local Sales Tax
13Reform Fund, the amount deposited into the State and Local
14Sales Tax Reform Fund for the same month in calendar year 2021.
15On August 1 of each year, the amount transferred from the
16General Revenue Fund to the State and Local Sales Tax Reform
17Fund shall be increased by the percentage change, if any, in
18the Consumer Price Index for All Urban Consumers as issued by
19the United States Department of Labor for the most recent
2012-month period for which data is available.
21    Beginning January 1, 1990, each month the Department shall
22pay into the County and Mass Transit District Fund 4% of the
23net revenue realized for the preceding month from the 6.25%
24general rate on the selling price of tangible personal
25property which is purchased outside Illinois at retail from a
26retailer and which is titled or registered by an agency of this

 

 

SB4164- 46 -LRB102 26254 HLH 36122 b

1State's government.
2    Beginning January 1, 1990, each month the Department shall
3pay into the State and Local Sales Tax Reform Fund, a special
4fund in the State Treasury, 20% of the net revenue realized for
5the preceding month from the 6.25% general rate on the selling
6price of tangible personal property, other than (i) tangible
7personal property which is purchased outside Illinois at
8retail from a retailer and which is titled or registered by an
9agency of this State's government and (ii) aviation fuel sold
10on or after December 1, 2019. This exception for aviation fuel
11only applies for so long as the revenue use requirements of 49
12U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
13    For aviation fuel sold on or after December 1, 2019, each
14month the Department shall pay into the State Aviation Program
15Fund 20% of the net revenue realized for the preceding month
16from the 6.25% general rate on the selling price of aviation
17fuel, less an amount estimated by the Department to be
18required for refunds of the 20% portion of the tax on aviation
19fuel under this Act, which amount shall be deposited into the
20Aviation Fuel Sales Tax Refund Fund. The Department shall only
21pay moneys into the State Aviation Program Fund and the
22Aviation Fuels Sales Tax Refund Fund under this Act for so long
23as the revenue use requirements of 49 U.S.C. 47107(b) and 49
24U.S.C. 47133 are binding on the State.
25    Beginning August 1, 2000, each month the Department shall
26pay into the State and Local Sales Tax Reform Fund 100% of the

 

 

SB4164- 47 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 48 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 49 -LRB102 26254 HLH 36122 b

1and after July 1, 1989, 3.8% thereof shall be paid into the
2Build Illinois Fund; provided, however, that if in any fiscal
3year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
4may be, of the moneys received by the Department and required
5to be paid into the Build Illinois Fund pursuant to Section 3
6of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
7Act, Section 9 of the Service Use Tax Act, and Section 9 of the
8Service Occupation Tax Act, such Acts being hereinafter called
9the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
10may be, of moneys being hereinafter called the "Tax Act
11Amount", and (2) the amount transferred to the Build Illinois
12Fund from the State and Local Sales Tax Reform Fund shall be
13less than the Annual Specified Amount (as defined in Section 3
14of the Retailers' Occupation Tax Act), an amount equal to the
15difference shall be immediately paid into the Build Illinois
16Fund from other moneys received by the Department pursuant to
17the Tax Acts; and further provided, that if on the last
18business day of any month the sum of (1) the Tax Act Amount
19required to be deposited into the Build Illinois Bond Account
20in the Build Illinois Fund during such month and (2) the amount
21transferred during such month to the Build Illinois Fund from
22the State and Local Sales Tax Reform Fund shall have been less
23than 1/12 of the Annual Specified Amount, an amount equal to
24the difference shall be immediately paid into the Build
25Illinois Fund from other moneys received by the Department
26pursuant to the Tax Acts; and, further provided, that in no

 

 

SB4164- 50 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 51 -LRB102 26254 HLH 36122 b

1Department pursuant to the Tax Acts to the Build Illinois
2Fund; provided, however, that any amounts paid to the Build
3Illinois Fund in any fiscal year pursuant to this sentence
4shall be deemed to constitute payments pursuant to clause (b)
5of the preceding sentence and shall reduce the amount
6otherwise payable for such fiscal year pursuant to clause (b)
7of the preceding sentence. The moneys received by the
8Department pursuant to this Act and required to be deposited
9into the Build Illinois Fund are subject to the pledge, claim
10and charge set forth in Section 12 of the Build Illinois Bond
11Act.
12    Subject to payment of amounts into the Build Illinois Fund
13as provided in the preceding paragraph or in any amendment
14thereto hereafter enacted, the following specified monthly
15installment of the amount requested in the certificate of the
16Chairman of the Metropolitan Pier and Exposition Authority
17provided under Section 8.25f of the State Finance Act, but not
18in excess of the sums designated as "Total Deposit", shall be
19deposited in the aggregate from collections under Section 9 of
20the Use Tax Act, Section 9 of the Service Use Tax Act, Section
219 of the Service Occupation Tax Act, and Section 3 of the
22Retailers' Occupation Tax Act into the McCormick Place
23Expansion Project Fund in the specified fiscal years.
24Fiscal YearTotal Deposit
251993         $0
261994 53,000,000

 

 

SB4164- 52 -LRB102 26254 HLH 36122 b

11995 58,000,000
21996 61,000,000
31997 64,000,000
41998 68,000,000
51999 71,000,000
62000 75,000,000
72001 80,000,000
82002 93,000,000
92003 99,000,000
102004103,000,000
112005108,000,000
122006113,000,000
132007119,000,000
142008126,000,000
152009132,000,000
162010139,000,000
172011146,000,000
182012153,000,000
192013161,000,000
202014170,000,000
212015179,000,000
222016189,000,000
232017199,000,000
242018210,000,000
252019221,000,000
262020233,000,000

 

 

SB4164- 53 -LRB102 26254 HLH 36122 b

12021300,000,000
22022300,000,000
32023300,000,000
42024 300,000,000
52025 300,000,000
62026 300,000,000
72027 375,000,000
82028 375,000,000
92029 375,000,000
102030 375,000,000
112031 375,000,000
122032 375,000,000
132033 375,000,000
142034375,000,000
152035375,000,000
162036450,000,000
17and
18each fiscal year
19thereafter that bonds
20are outstanding under
21Section 13.2 of the
22Metropolitan Pier and
23Exposition Authority Act,
24but not after fiscal year 2060.
25    Beginning July 20, 1993 and in each month of each fiscal
26year thereafter, one-eighth of the amount requested in the

 

 

SB4164- 54 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 55 -LRB102 26254 HLH 36122 b

1preceding paragraphs or in any amendments thereto hereafter
2enacted, beginning July 1, 1993 and ending on September 30,
32013, the Department shall each month pay into the Illinois
4Tax Increment Fund 0.27% of 80% of the net revenue realized for
5the preceding month from the 6.25% general rate on the selling
6price of tangible personal property.
7    Subject to payment of amounts into the Build Illinois Fund
8and the McCormick Place Expansion Project Fund pursuant to the
9preceding paragraphs or in any amendments thereto hereafter
10enacted, beginning with the receipt of the first report of
11taxes paid by an eligible business and continuing for a
1225-year period, the Department shall each month pay into the
13Energy Infrastructure Fund 80% of the net revenue realized
14from the 6.25% general rate on the selling price of
15Illinois-mined coal that was sold to an eligible business. For
16purposes of this paragraph, the term "eligible business" means
17a new electric generating facility certified pursuant to
18Section 605-332 of the Department of Commerce and Economic
19Opportunity Law of the Civil Administrative Code of Illinois.
20    Subject to payment of amounts into the Build Illinois
21Fund, the McCormick Place Expansion Project Fund, the Illinois
22Tax Increment Fund, and the Energy Infrastructure Fund
23pursuant to the preceding paragraphs or in any amendments to
24this Section hereafter enacted, beginning on the first day of
25the first calendar month to occur on or after August 26, 2014
26(the effective date of Public Act 98-1098), each month, from

 

 

SB4164- 56 -LRB102 26254 HLH 36122 b

1the collections made under Section 9 of the Use Tax Act,
2Section 9 of the Service Use Tax Act, Section 9 of the Service
3Occupation Tax Act, and Section 3 of the Retailers' Occupation
4Tax Act, the Department shall pay into the Tax Compliance and
5Administration Fund, to be used, subject to appropriation, to
6fund additional auditors and compliance personnel at the
7Department of Revenue, an amount equal to 1/12 of 5% of 80% of
8the cash receipts collected during the preceding fiscal year
9by the Audit Bureau of the Department under the Use Tax Act,
10the Service Use Tax Act, the Service Occupation Tax Act, the
11Retailers' Occupation Tax Act, and associated local occupation
12and use taxes administered by the Department.
13    Subject to payments of amounts into the Build Illinois
14Fund, the McCormick Place Expansion Project Fund, the Illinois
15Tax Increment Fund, the Energy Infrastructure Fund, and the
16Tax Compliance and Administration Fund as provided in this
17Section, beginning on July 1, 2018 the Department shall pay
18each month into the Downstate Public Transportation Fund the
19moneys required to be so paid under Section 2-3 of the
20Downstate Public Transportation Act.
21    Subject to successful execution and delivery of a
22public-private agreement between the public agency and private
23entity and completion of the civic build, beginning on July 1,
242023, of the remainder of the moneys received by the
25Department under the Use Tax Act, the Service Use Tax Act, the
26Service Occupation Tax Act, and this Act, the Department shall

 

 

SB4164- 57 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 58 -LRB102 26254 HLH 36122 b

1        2034....................................$341,200,000
2        2035....................................$351,400,000
3        2036....................................$361,900,000
4        2037....................................$372,800,000
5        2038....................................$384,000,000
6        2039....................................$395,500,000
7        2040....................................$407,400,000
8        2041....................................$419,600,000
9        2042....................................$432,200,000
10        2043....................................$445,100,000
11    Beginning July 1, 2021 and until July 1, 2022, subject to
12the payment of amounts into the State and Local Sales Tax
13Reform Fund, the Build Illinois Fund, the McCormick Place
14Expansion Project Fund, the Illinois Tax Increment Fund, the
15Energy 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 16% of the net revenue realized from
19the taxes imposed on motor fuel and gasohol. Beginning July 1,
202022 and until July 1, 2023, subject to the payment of amounts
21into the State and Local Sales Tax Reform Fund, the Build
22Illinois Fund, the McCormick Place Expansion Project Fund, the
23Illinois Tax Increment Fund, the Energy Infrastructure Fund,
24and the Tax Compliance and Administration Fund as provided in
25this Section, the Department shall pay each month into the
26Road Fund the amount estimated to represent 32% of the net

 

 

SB4164- 59 -LRB102 26254 HLH 36122 b

1revenue realized from the taxes imposed on motor fuel and
2gasohol. Beginning July 1, 2023 and until July 1, 2024,
3subject to the payment of amounts into the State and Local
4Sales Tax Reform Fund, the Build Illinois Fund, the McCormick
5Place Expansion Project Fund, the Illinois Tax Increment Fund,
6the Energy 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 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 64% of the net
18revenue realized from the taxes imposed on motor fuel and
19gasohol. Beginning on July 1, 2025, subject to the payment of
20amounts into the State and Local Sales Tax Reform 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 80% of the net revenue realized from the taxes

 

 

SB4164- 60 -LRB102 26254 HLH 36122 b

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

 

 

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1such sales, if the retailers who are affected do not make
2written objection to the Department to this arrangement.
3(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
4100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
515, Section 15-10, eff. 6-5-19; 101-10, Article 25, Section
625-105, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
76-28-19; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
 
8    Section 10. The Service Use Tax Act is amended by changing
9Sections 3-5, 3-10, and 9 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

 

 

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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

 

 

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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,

 

 

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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

 

 

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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,

 

 

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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

 

 

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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

 

 

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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.

 

 

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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

 

 

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1corporation that holds a valid water supply permit issued
2under Title IV of the Environmental Protection Act. This
3paragraph is exempt from the provisions of Section 3-75.
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

 

 

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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

 

 

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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.

 

 

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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

 

 

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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, food prepared for immediate
10consumption and transferred incident to a sale of service
11subject to this Act or the Service Occupation Tax Act by an
12entity licensed under the Hospital Licensing Act, the Nursing
13Home Care Act, the Assisted Living and Shared Housing Act, the
14ID/DD Community Care Act, the MC/DD Act, the Specialized
15Mental Health Rehabilitation Act of 2013, or the Child Care
16Act of 1969, or an entity that holds a permit issued pursuant
17to the Life Care Facilities Act; food for human consumption
18that is to be consumed off the premises where it is sold (other
19than alcoholic beverages, food consisting of or infused with
20adult use cannabis, soft drinks, and food that has been
21prepared for immediate consumption and is not otherwise
22included in this paragraph); and prescription and
23nonprescription medicines, drugs, medical appliances, products
24classified as Class III medical devices by the United States
25Food and Drug Administration that are used for cancer
26treatment pursuant to a prescription, as well as any

 

 

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1accessories and components related to those devices,
2modifications to a motor vehicle for the purpose of rendering
3it usable by a person with a disability, and insulin, blood
4sugar testing materials, syringes, and needles used by human
5diabetics. This item (32) is exempt from the provisions of
6Section 3-75.
7(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
8101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
 
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
25the sale of service on or after July 1, 2003 and on or before

 

 

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1July 1, 2017, and (iii) 100% of the selling price thereafter.
2If, at any time, however, the tax under this Act on sales of
3gasohol, as defined in the Use Tax Act, is imposed at the rate
4of 1.25%, then the tax imposed by this Act applies to 100% of
5the proceeds of sales of gasohol made during that time.
6    With respect to majority blended ethanol fuel, as defined
7in the Use Tax Act, the tax imposed by this Act does not apply
8to the selling price of property transferred as an incident to
9the sale of service on or after July 1, 2003 and on or before
10December 31, 2023 but applies to 100% of the selling price
11thereafter.
12    With respect to biodiesel blends, as defined in the Use
13Tax Act, with no less than 1% and no more than 10% biodiesel,
14the tax imposed by this Act applies to (i) 80% of the selling
15price of property transferred as an incident to the sale of
16service on or after July 1, 2003 and on or before December 31,
172018 and (ii) 100% of the proceeds of the selling price
18thereafter. If, at any time, however, the tax under this Act on
19sales of biodiesel blends, as defined in the Use Tax Act, with
20no less than 1% and no more than 10% biodiesel is imposed at
21the rate of 1.25%, then the tax imposed by this Act applies to
22100% of the proceeds of sales of biodiesel blends with no less
23than 1% and no more than 10% biodiesel made during that time.
24    With respect to 100% biodiesel, as defined in the Use Tax
25Act, and biodiesel blends, as defined in the Use Tax Act, with
26more than 10% but no more than 99% biodiesel, the tax imposed

 

 

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1by this Act does not apply to the proceeds of the selling price
2of property transferred as an incident to the sale of service
3on or after July 1, 2003 and on or before December 31, 2023 but
4applies to 100% of the selling price thereafter.
5    At the election of any registered serviceman made for each
6fiscal year, sales of service in which the aggregate annual
7cost price of tangible personal property transferred as an
8incident to the sales of service is less than 35%, or 75% in
9the case of servicemen transferring prescription drugs or
10servicemen engaged in graphic arts production, of the
11aggregate annual total gross receipts from all sales of
12service, the tax imposed by this Act shall be based on the
13serviceman's cost price of the tangible personal property
14transferred as an incident to the sale of those services.
15    Until July 1, 2022, the The tax shall be imposed at the
16rate of 1% on food prepared for immediate consumption and
17transferred incident to a sale of service subject to this Act
18or the Service Occupation Tax Act by an entity licensed under
19the Hospital Licensing Act, the Nursing Home Care Act, the
20Assisted Living and Shared Housing Act, the ID/DD Community
21Care Act, the MC/DD Act, the Specialized Mental Health
22Rehabilitation Act of 2013, or the Child Care Act of 1969, or
23an entity that holds a permit issued pursuant to the Life Care
24Facilities Act. Until July 1, 2022, the The tax shall also be
25imposed at the rate of 1% on food for human consumption that is
26to be consumed 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 is not otherwise included in this
4paragraph) and prescription and nonprescription medicines,
5drugs, medical appliances, products classified as Class III
6medical 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. Beginning on
13July 1, 2022, items that had been subject to a 1% rate of tax
14under this paragraph shall be exempt as provided in item (32)
15of Section 3-5. For the purposes of this Section, until
16September 1, 2009: the term "soft drinks" means any complete,
17finished, ready-to-use, non-alcoholic drink, whether
18carbonated or not, including but not limited to soda water,
19cola, fruit juice, vegetable juice, carbonated water, and all
20other preparations commonly known as soft drinks of whatever
21kind or description that are contained in any closed or sealed
22bottle, can, carton, or container, regardless of size; but
23"soft drinks" does not include coffee, tea, non-carbonated
24water, infant formula, milk or milk products as defined in the
25Grade A Pasteurized Milk and Milk Products Act, or drinks
26containing 50% or more natural fruit or vegetable juice.

 

 

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

 

 

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1flour or requires refrigeration.
2    Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "nonprescription medicines and
4drugs" does not include grooming and hygiene products. For
5purposes of this Section, "grooming and hygiene products"
6includes, but is not limited to, soaps and cleaning solutions,
7shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
8lotions and screens, unless those products are available by
9prescription only, regardless of whether the products meet the
10definition of "over-the-counter-drugs". For the purposes of
11this paragraph, "over-the-counter-drug" means a drug for human
12use that contains a label that identifies the product as a drug
13as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
14label includes:
15        (A) A "Drug Facts" panel; or
16        (B) A statement of the "active ingredient(s)" with a
17    list of those ingredients contained in the compound,
18    substance or preparation.
19    Beginning on January 1, 2014 (the effective date of Public
20Act 98-122), "prescription and nonprescription medicines and
21drugs" includes medical cannabis purchased from a registered
22dispensing organization under the Compassionate Use of Medical
23Cannabis Program Act.
24    As used in this Section, "adult use cannabis" means
25cannabis subject to tax under the Cannabis Cultivation
26Privilege Tax Law and the Cannabis Purchaser Excise Tax Law

 

 

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1and does not include cannabis subject to tax under the
2Compassionate Use of Medical Cannabis Program Act.
3    If the property that is acquired from a serviceman is
4acquired outside Illinois and used outside Illinois before
5being brought to Illinois for use here and is taxable under
6this Act, the "selling price" on which the tax is computed
7shall be reduced by an amount that represents a reasonable
8allowance for depreciation for the period of prior
9out-of-state use.
10(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
11102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
12    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
13    Sec. 9. Each serviceman required or authorized to collect
14the tax herein imposed shall pay to the Department the amount
15of such tax (except as otherwise provided) at the time when he
16is required to file his return for the period during which such
17tax was collected, less a discount of 2.1% prior to January 1,
181990 and 1.75% on and after January 1, 1990, or $5 per calendar
19year, whichever is greater, which is allowed to reimburse the
20serviceman for expenses incurred in collecting the tax,
21keeping records, preparing and filing returns, remitting the
22tax and supplying data to the Department on request. The
23discount under this Section is not allowed for the 1.25%
24portion of taxes paid on aviation fuel that is subject to the
25revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.

 

 

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147133. The discount allowed under this Section is allowed only
2for returns that are filed in the manner required by this Act.
3The Department may disallow the discount for servicemen whose
4certificate of registration is revoked at the time the return
5is filed, but only if the Department's decision to revoke the
6certificate of registration has become final. A serviceman
7need not remit that part of any tax collected by him to the
8extent that he is required to pay and does pay the tax imposed
9by the Service Occupation Tax Act with respect to his sale of
10service involving the incidental transfer by him of the same
11property.
12    Except as provided hereinafter in this Section, on or
13before the twentieth day of each calendar month, such
14serviceman shall file a return for the preceding calendar
15month in accordance with reasonable Rules and Regulations to
16be promulgated by the Department. Such return shall be filed
17on a form prescribed by the Department and shall contain such
18information as the Department may reasonably require. On and
19after January 1, 2018, with respect to servicemen whose annual
20gross receipts average $20,000 or more, all returns required
21to be filed pursuant to this Act shall be filed
22electronically. Servicemen who demonstrate that they do not
23have access to the Internet or demonstrate hardship in filing
24electronically may petition the Department to waive the
25electronic filing requirement.
26    The Department may require returns to be filed on a

 

 

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

 

 

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1tax return. The requirements related to the return shall be as
2otherwise provided in this Section. Notwithstanding any other
3provisions of this Act to the contrary, servicemen collecting
4tax on aviation fuel shall file all aviation fuel tax returns
5and shall make all aviation fuel tax payments by electronic
6means in the manner and form required by the Department. For
7purposes of this Section, "aviation fuel" means jet fuel and
8aviation gasoline.
9    If a taxpayer fails to sign a return within 30 days after
10the proper notice and demand for signature by the Department,
11the return shall be considered valid and any amount shown to be
12due on the return shall be deemed assessed.
13    Notwithstanding any other provision of this Act to the
14contrary, servicemen subject to tax on cannabis shall file all
15cannabis tax returns and shall make all cannabis tax payments
16by electronic means in the manner and form required by the
17Department.
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

 

 

SB4164- 89 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 90 -LRB102 26254 HLH 36122 b

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    If the serviceman is otherwise required to file a monthly
7return and if the serviceman's average monthly tax liability
8to the Department does not exceed $200, the Department may
9authorize his returns to be filed on a quarter annual basis,
10with the return for January, February and March of a given year
11being due by April 20 of such year; with the return for April,
12May and June of a given year being due by July 20 of such year;
13with the return for July, August and September of a given year
14being due by October 20 of such year, and with the return for
15October, November and December of a given year being due by
16January 20 of the following year.
17    If the serviceman is otherwise required to file a monthly
18or quarterly return and if the serviceman's average monthly
19tax liability to the Department does not exceed $50, the
20Department may authorize his returns to be filed on an annual
21basis, with the return for a given year being due by January 20
22of the following year.
23    Such quarter annual and annual returns, as to form and
24substance, shall be subject to the same requirements as
25monthly returns.
26    Notwithstanding any other provision in this Act concerning

 

 

SB4164- 91 -LRB102 26254 HLH 36122 b

1the time within which a serviceman may file his return, in the
2case of any serviceman who ceases to engage in a kind of
3business which makes him responsible for filing returns under
4this Act, such serviceman shall file a final return under this
5Act with the Department not more than 1 month after
6discontinuing such business.
7    Where a serviceman collects the tax with respect to the
8selling price of property which he sells and the purchaser
9thereafter returns such property and the serviceman refunds
10the selling price thereof to the purchaser, such serviceman
11shall also refund, to the purchaser, the tax so collected from
12the purchaser. When filing his return for the period in which
13he refunds such tax to the purchaser, the serviceman may
14deduct the amount of the tax so refunded by him to the
15purchaser from any other Service Use Tax, Service Occupation
16Tax, retailers' occupation tax or use tax which such
17serviceman may be required to pay or remit to the Department,
18as shown by such return, provided that the amount of the tax to
19be deducted shall previously have been remitted to the
20Department by such serviceman. If the serviceman shall not
21previously have remitted the amount of such tax to the
22Department, he shall be entitled to no deduction hereunder
23upon refunding such tax to the purchaser.
24    Any serviceman filing a return hereunder shall also
25include the total tax upon the selling price of tangible
26personal property purchased for use by him as an incident to a

 

 

SB4164- 92 -LRB102 26254 HLH 36122 b

1sale of service, and such serviceman shall remit the amount of
2such tax to the Department when filing such return.
3    If experience indicates such action to be practicable, the
4Department may prescribe and furnish a combination or joint
5return which will enable servicemen, who are required to file
6returns hereunder and also under the Service Occupation Tax
7Act, to furnish all the return information required by both
8Acts on the one form.
9    Where the serviceman has more than one business registered
10with the Department under separate registration hereunder,
11such serviceman shall not file each return that is due as a
12single return covering all such registered businesses, but
13shall file separate returns for each such registered business.
14    Beginning January 1, 1990 and until August 1, 2022, each
15month the Department shall pay into the State and Local Tax
16Reform Fund, a special fund in the State Treasury, the net
17revenue realized for the preceding month from the 1% tax
18imposed under this Act.
19    Beginning August 1, 2022, the State Comptroller shall
20order transferred and the State Treasurer shall transfer from
21the General Revenue Fund to the State and Local Sales Tax
22Reform Fund, the amount deposited into the State and Local
23Sales Tax Reform Fund for the same month in calendar year 2021.
24On August 1 of each year, the amount transferred from the
25General Revenue Fund to the State and Local Sales Tax Reform
26Fund shall be increased by the percentage change, if any, in

 

 

SB4164- 93 -LRB102 26254 HLH 36122 b

1the Consumer Price Index for All Urban Consumers as issued by
2the United States Department of Labor for the most recent
312-month period for which data is available.
4    Beginning January 1, 1990, each month the Department shall
5pay into the State and Local Sales Tax Reform Fund 20% of the
6net revenue realized for the preceding month from the 6.25%
7general rate on transfers of tangible personal property, other
8than (i) tangible personal property which is purchased outside
9Illinois at retail from a retailer and which is titled or
10registered by an agency of this State's government and (ii)
11aviation fuel sold on or after December 1, 2019. This
12exception for aviation fuel only applies for so long as the
13revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1447133 are binding on the State.
15    For aviation fuel sold on or after December 1, 2019, each
16month the Department shall pay into the State Aviation Program
17Fund 20% of the net revenue realized for the preceding month
18from the 6.25% general rate on the selling price of aviation
19fuel, less an amount estimated by the Department to be
20required for refunds of the 20% portion of the tax on aviation
21fuel under this Act, which amount shall be deposited into the
22Aviation Fuel Sales Tax Refund Fund. The Department shall only
23pay moneys into the State Aviation Program Fund and the
24Aviation Fuel Sales Tax Refund Fund under this Act 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 State.

 

 

SB4164- 94 -LRB102 26254 HLH 36122 b

1    Beginning August 1, 2000, each month the Department shall
2pay into the State and Local Sales Tax Reform Fund 100% of the
3net revenue realized for the preceding month from the 1.25%
4rate on the selling price of motor fuel and gasohol.
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, 2013, each month the Department shall
13pay into the Underground Storage Tank Fund from the proceeds
14collected under this Act, the Use Tax Act, the Service
15Occupation Tax Act, and the Retailers' Occupation Tax Act an
16amount equal to the average monthly deficit in the Underground
17Storage Tank Fund during the prior year, as certified annually
18by the Illinois Environmental Protection Agency, but the total
19payment into the Underground Storage Tank Fund under this Act,
20the Use Tax Act, the Service Occupation Tax Act, and the
21Retailers' Occupation Tax Act shall not exceed $18,000,000 in
22any State fiscal year. As used in this paragraph, the "average
23monthly deficit" shall be equal to the difference between the
24average monthly claims for payment by the fund and the average
25monthly revenues deposited into the fund, excluding payments
26made pursuant to this paragraph.

 

 

SB4164- 95 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 96 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 97 -LRB102 26254 HLH 36122 b

1outstanding pursuant to the Build Illinois Bond Act, the
2aggregate of the moneys deposited in the Build Illinois Bond
3Account in the Build Illinois Fund in such month shall be less
4than the amount required to be transferred in such month from
5the Build Illinois Bond Account to the Build Illinois Bond
6Retirement and Interest Fund pursuant to Section 13 of the
7Build Illinois Bond Act, an amount equal to such deficiency
8shall be immediately paid from other moneys received by the
9Department pursuant to the Tax Acts to the Build Illinois
10Fund; provided, however, that any amounts paid to the Build
11Illinois Fund in any fiscal year pursuant to this sentence
12shall be deemed to constitute payments pursuant to clause (b)
13of the preceding sentence and shall reduce the amount
14otherwise payable for such fiscal year pursuant to clause (b)
15of the preceding sentence. The moneys received by the
16Department pursuant to this Act and required to be deposited
17into the Build Illinois Fund are subject to the pledge, claim
18and charge set forth in Section 12 of the Build Illinois Bond
19Act.
20    Subject to payment of amounts into the Build Illinois Fund
21as provided in the preceding paragraph or in any amendment
22thereto hereafter enacted, the following specified monthly
23installment of the amount requested in the certificate of the
24Chairman of the Metropolitan Pier and Exposition Authority
25provided under Section 8.25f of the State Finance Act, but not
26in excess of the sums designated as "Total Deposit", shall be

 

 

SB4164- 98 -LRB102 26254 HLH 36122 b

1deposited in the aggregate from collections under Section 9 of
2the Use Tax Act, Section 9 of the Service Use Tax Act, Section
39 of the Service Occupation Tax Act, and Section 3 of the
4Retailers' Occupation Tax Act into the McCormick Place
5Expansion Project Fund in the specified fiscal years.
 
6Fiscal YearTotal Deposit
71993         $0
81994 53,000,000
91995 58,000,000
101996 61,000,000
111997 64,000,000
121998 68,000,000
131999 71,000,000
142000 75,000,000
152001 80,000,000
162002 93,000,000
172003 99,000,000
182004103,000,000
192005108,000,000
202006113,000,000
212007119,000,000
222008126,000,000
232009132,000,000
242010139,000,000
252011146,000,000

 

 

SB4164- 99 -LRB102 26254 HLH 36122 b

12012153,000,000
22013161,000,000
32014170,000,000
42015179,000,000
52016189,000,000
62017199,000,000
72018210,000,000
82019221,000,000
92020233,000,000
102021300,000,000
112022300,000,000
122023300,000,000
132024 300,000,000
142025 300,000,000
152026 300,000,000
162027 375,000,000
172028 375,000,000
182029 375,000,000
192030 375,000,000
202031 375,000,000
212032 375,000,000
222033 375,000,000
232034375,000,000
242035375,000,000
252036450,000,000
26and

 

 

SB4164- 100 -LRB102 26254 HLH 36122 b

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

 

 

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1Sales Tax Refund Fund an amount estimated by the Department to
2be required for refunds of the 80% portion of the tax on
3aviation fuel under this Act. The Department shall only
4deposit moneys into the Aviation Fuel Sales Tax Refund Fund
5under this paragraph for so long as the revenue use
6requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
7binding on the State.
8    Subject to payment of amounts into the Build Illinois Fund
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, beginning July 1, 1993 and ending on September 30,
122013, the Department shall each month pay into the Illinois
13Tax Increment Fund 0.27% of 80% of the net revenue realized for
14the preceding month from the 6.25% general rate on the selling
15price of tangible personal property.
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 with the receipt of the first report of
20taxes paid by an eligible business and continuing for a
2125-year period, the Department shall each month pay into the
22Energy Infrastructure Fund 80% of the net revenue realized
23from the 6.25% general rate on the selling price of
24Illinois-mined coal that was sold to an eligible business. For
25purposes of this paragraph, the term "eligible business" means
26a new electric generating facility certified pursuant to

 

 

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1Section 605-332 of the Department of Commerce and Economic
2Opportunity Law of the Civil Administrative Code of Illinois.
3    Subject to payment of amounts into the Build Illinois
4Fund, the McCormick Place Expansion Project Fund, the Illinois
5Tax Increment Fund, and the Energy Infrastructure Fund
6pursuant to the preceding paragraphs or in any amendments to
7this Section hereafter enacted, beginning on the first day of
8the first calendar month to occur on or after August 26, 2014
9(the effective date of Public Act 98-1098), each month, from
10the collections made under Section 9 of the Use Tax Act,
11Section 9 of the Service Use Tax Act, Section 9 of the Service
12Occupation Tax Act, and Section 3 of the Retailers' Occupation
13Tax Act, the Department shall pay into the Tax Compliance and
14Administration Fund, to be used, subject to appropriation, to
15fund additional auditors and compliance personnel at the
16Department of Revenue, an amount equal to 1/12 of 5% of 80% of
17the cash receipts collected during the preceding fiscal year
18by the Audit Bureau of the Department under the Use Tax Act,
19the Service Use Tax Act, the Service Occupation Tax Act, the
20Retailers' Occupation Tax Act, and associated local occupation
21and use taxes administered by the Department.
22    Subject to payments of amounts into the Build Illinois
23Fund, the McCormick Place Expansion Project Fund, the Illinois
24Tax Increment Fund, the Energy Infrastructure Fund, and the
25Tax Compliance and Administration Fund as provided in this
26Section, beginning on July 1, 2018 the Department shall pay

 

 

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1each month into the Downstate Public Transportation Fund the
2moneys required to be so paid under Section 2-3 of the
3Downstate Public Transportation Act.
4    Subject to successful execution and delivery of a
5public-private agreement between the public agency and private
6entity and completion of the civic build, beginning on July 1,
72023, of the remainder of the moneys received by the
8Department under the Use Tax Act, the Service Use Tax Act, the
9Service Occupation Tax Act, and this Act, the Department shall
10deposit the following specified deposits in the aggregate from
11collections under the Use Tax Act, the Service Use Tax Act, the
12Service Occupation Tax Act, and the Retailers' Occupation Tax
13Act, as required under Section 8.25g of the State Finance Act
14for distribution consistent with the Public-Private
15Partnership for Civic and Transit Infrastructure Project Act.
16The moneys received by the Department pursuant to this Act and
17required to be deposited into the Civic and Transit
18Infrastructure Fund are subject to the pledge, claim, and
19charge set forth in Section 25-55 of the Public-Private
20Partnership for Civic and Transit Infrastructure Project Act.
21As used in this paragraph, "civic build", "private entity",
22"public-private agreement", and "public agency" have the
23meanings provided in Section 25-10 of the Public-Private
24Partnership for Civic and Transit Infrastructure Project Act.
25        Fiscal Year............................Total Deposit
26        2024....................................$200,000,000

 

 

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1        2025....................................$206,000,000
2        2026....................................$212,200,000
3        2027....................................$218,500,000
4        2028....................................$225,100,000
5        2029....................................$288,700,000
6        2030....................................$298,900,000
7        2031....................................$309,300,000
8        2032....................................$320,100,000
9        2033....................................$331,200,000
10        2034....................................$341,200,000
11        2035....................................$351,400,000
12        2036....................................$361,900,000
13        2037....................................$372,800,000
14        2038....................................$384,000,000
15        2039....................................$395,500,000
16        2040....................................$407,400,000
17        2041....................................$419,600,000
18        2042....................................$432,200,000
19        2043....................................$445,100,000
20    Beginning July 1, 2021 and until July 1, 2022, subject to
21the payment of amounts into the State and Local Sales Tax
22Reform Fund, the Build Illinois Fund, the McCormick Place
23Expansion Project Fund, the Illinois Tax Increment Fund, the
24Energy Infrastructure Fund, and the Tax Compliance and
25Administration Fund as provided in this Section, the
26Department shall pay each month into the Road Fund the amount

 

 

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1estimated to represent 16% of the net revenue realized from
2the taxes imposed on motor fuel and gasohol. Beginning July 1,
32022 and until July 1, 2023, subject to the payment of amounts
4into the State and Local Sales Tax Reform Fund, the Build
5Illinois Fund, the McCormick Place Expansion Project Fund, the
6Illinois Tax Increment Fund, the Energy Infrastructure Fund,
7and the Tax Compliance and Administration Fund as provided in
8this Section, the Department shall pay each month into the
9Road Fund the amount estimated to represent 32% of the net
10revenue realized from the taxes imposed on motor fuel and
11gasohol. Beginning July 1, 2023 and until July 1, 2024,
12subject to the payment of amounts into the State and Local
13Sales Tax Reform 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 48% of the net revenue realized from
19the taxes imposed on motor fuel and gasohol. Beginning July 1,
202024 and until July 1, 2025, subject to the payment of amounts
21into the State and Local Sales Tax Reform Fund, the Build
22Illinois Fund, the McCormick Place Expansion Project Fund, the
23Illinois Tax Increment Fund, the Energy Infrastructure Fund,
24and the Tax Compliance and Administration Fund as provided in
25this Section, the Department shall pay each month into the
26Road Fund the amount estimated to represent 64% of the net

 

 

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1revenue realized from the taxes imposed on motor fuel and
2gasohol. Beginning on July 1, 2025, subject to the payment of
3amounts into the State and Local Sales Tax Reform Fund, the
4Build Illinois Fund, the McCormick Place Expansion Project
5Fund, the Illinois Tax Increment Fund, the Energy
6Infrastructure Fund, and the Tax Compliance and Administration
7Fund as provided in this Section, the Department shall pay
8each month into the Road Fund the amount estimated to
9represent 80% of the net revenue realized from the taxes
10imposed on motor fuel and gasohol. As used in this paragraph
11"motor fuel" has the meaning given to that term in Section 1.1
12of the Motor Fuel Tax Act, and "gasohol" has the meaning given
13to that term in Section 3-40 of the Use Tax Act.
14    Of the remainder of the moneys received by the Department
15pursuant to this Act, 75% thereof shall be paid into the
16General Revenue Fund of the State Treasury and 25% shall be
17reserved in a special account and used only for the transfer to
18the Common School Fund as part of the monthly transfer from the
19General Revenue Fund in accordance with Section 8a of the
20State Finance Act.
21    As soon as possible after the first day of each month, upon
22certification of the Department of Revenue, the Comptroller
23shall order transferred and the Treasurer shall transfer from
24the General Revenue Fund to the Motor Fuel Tax Fund an amount
25equal to 1.7% of 80% of the net revenue realized under this Act
26for the second preceding month. Beginning April 1, 2000, this

 

 

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1transfer is no longer required and shall not be made.
2    Net revenue realized for a month shall be the revenue
3collected by the State pursuant to this Act, less the amount
4paid out during that month as refunds to taxpayers for
5overpayment of liability.
6(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
7100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
815, Section 15-15, eff. 6-5-19; 101-10, Article 25, Section
925-110, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
106-28-19; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
 
11    Section 15. The Service Occupation Tax Act is amended by
12changing Sections 3-5, 3-10, and 9 as follows:
 
13    (35 ILCS 115/3-5)
14    Sec. 3-5. Exemptions. The following tangible personal
15property is exempt from the tax imposed by this Act:
16    (1) Personal property sold by a corporation, society,
17association, foundation, institution, or organization, other
18than a limited liability company, that is organized and
19operated as a not-for-profit service enterprise for the
20benefit of persons 65 years of age or older if the personal
21property was not purchased by the enterprise for the purpose
22of resale by the enterprise.
23    (2) Personal property purchased by a not-for-profit
24Illinois county fair association for use in conducting,

 

 

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1operating, or promoting the county fair.
2    (3) Personal property purchased by any not-for-profit arts
3or cultural organization that establishes, by proof required
4by the Department by rule, that it has received an exemption
5under Section 501(c)(3) of the Internal Revenue Code and that
6is organized and operated primarily for the presentation or
7support of arts or cultural programming, activities, or
8services. These organizations include, but are not limited to,
9music and dramatic arts organizations such as symphony
10orchestras and theatrical groups, arts and cultural service
11organizations, local arts councils, visual arts organizations,
12and media arts organizations. On and after July 1, 2001 (the
13effective date of Public Act 92-35), however, an entity
14otherwise eligible for this exemption shall not make tax-free
15purchases unless it has an active identification number issued
16by the Department.
17    (4) Legal tender, currency, medallions, or gold or silver
18coinage issued by the State of Illinois, the government of the
19United States of America, or the government of any foreign
20country, and bullion.
21    (5) Until July 1, 2003 and beginning again on September 1,
222004 through August 30, 2014, graphic arts machinery and
23equipment, including repair and replacement parts, both new
24and used, and including that manufactured on special order or
25purchased for lease, certified by the purchaser to be used
26primarily for graphic arts production. Equipment includes

 

 

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

 

 

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1on a motor vehicle required to be licensed if the selling price
2of the tender is separately stated.
3    Farm machinery and equipment shall include precision
4farming equipment that is installed or purchased to be
5installed on farm machinery and equipment including, but not
6limited to, tractors, harvesters, sprayers, planters, seeders,
7or spreaders. Precision farming equipment includes, but is not
8limited to, soil testing sensors, computers, monitors,
9software, global positioning and mapping systems, and other
10such equipment.
11    Farm machinery and equipment also includes computers,
12sensors, software, and related equipment used primarily in the
13computer-assisted operation of production agriculture
14facilities, equipment, and activities such as, but not limited
15to, the collection, monitoring, and correlation of animal and
16crop data for the purpose of formulating animal diets and
17agricultural chemicals. This item (7) is exempt from the
18provisions of Section 3-55.
19    (8) Until June 30, 2013, fuel and petroleum products sold
20to or used by an air common carrier, certified by the carrier
21to be used for consumption, shipment, or storage in the
22conduct of its business as an air common carrier, for a flight
23destined for or returning from a location or locations outside
24the United States without regard to previous or subsequent
25domestic stopovers.
26    Beginning July 1, 2013, fuel and petroleum products sold

 

 

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

 

 

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1Vehicle Code.
2    (11) Photoprocessing machinery and equipment, including
3repair and replacement parts, both new and used, including
4that manufactured on special order, certified by the purchaser
5to be used primarily for photoprocessing, and including
6photoprocessing machinery and equipment purchased for lease.
7    (12) Until July 1, 2023, coal and aggregate exploration,
8mining, off-highway hauling, processing, maintenance, and
9reclamation equipment, including replacement parts and
10equipment, and including equipment purchased for lease, but
11excluding motor vehicles required to be registered under the
12Illinois Vehicle Code. The changes made to this Section by
13Public Act 97-767 apply on and after July 1, 2003, but no claim
14for credit or refund is allowed on or after August 16, 2013
15(the effective date of Public Act 98-456) for such taxes paid
16during the period beginning July 1, 2003 and ending on August
1716, 2013 (the effective date of Public Act 98-456).
18    (13) Beginning January 1, 1992 and through June 30, 2016,
19food for human consumption that is to be consumed off the
20premises where it is sold (other than alcoholic beverages,
21soft drinks and food that has been prepared for immediate
22consumption) and prescription and non-prescription medicines,
23drugs, medical appliances, and insulin, urine testing
24materials, syringes, and needles used by diabetics, for human
25use, when purchased for use by a person receiving medical
26assistance under Article V of the Illinois Public Aid Code who

 

 

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1resides in a licensed long-term care facility, as defined in
2the Nursing Home Care Act, or in a licensed facility as defined
3in the ID/DD Community Care Act, the MC/DD Act, or the
4Specialized Mental Health Rehabilitation Act of 2013.
5    (14) Semen used for artificial insemination of livestock
6for direct agricultural production.
7    (15) Horses, or interests in horses, registered with and
8meeting the requirements of any of the Arabian Horse Club
9Registry of America, Appaloosa Horse Club, American Quarter
10Horse Association, United States Trotting Association, or
11Jockey Club, as appropriate, used for purposes of breeding or
12racing for prizes. This item (15) is exempt from the
13provisions of Section 3-55, and the exemption provided for
14under this item (15) applies for all periods beginning May 30,
151995, but no claim for credit or refund is allowed on or after
16January 1, 2008 (the effective date of Public Act 95-88) for
17such taxes paid during the period beginning May 30, 2000 and
18ending on January 1, 2008 (the effective date of Public Act
1995-88).
20    (16) Computers and communications equipment utilized for
21any hospital purpose and equipment used in the diagnosis,
22analysis, or treatment of hospital patients sold to a lessor
23who leases the equipment, under a lease of one year or longer
24executed or in effect at the time of the purchase, to a
25hospital that has been issued an active tax exemption
26identification number by the Department under Section 1g of

 

 

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1the Retailers' Occupation Tax Act.
2    (17) Personal property sold to a lessor who leases the
3property, under a lease of one year or longer executed or in
4effect at the time of the purchase, to a governmental body that
5has been issued an active tax exemption identification number
6by the Department under Section 1g of the Retailers'
7Occupation Tax Act.
8    (18) 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 donated
11for disaster relief to be used in a State or federally declared
12disaster area in Illinois or bordering Illinois by a
13manufacturer or retailer that is registered in this State to a
14corporation, society, association, foundation, or institution
15that has been issued a sales tax exemption identification
16number by the Department that assists victims of the disaster
17who reside within the declared disaster area.
18    (19) 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 used in
21the performance of infrastructure repairs in this State,
22including but not limited to municipal roads and streets,
23access roads, bridges, sidewalks, waste disposal systems,
24water and sewer line extensions, water distribution and
25purification facilities, storm water drainage and retention
26facilities, and sewage treatment facilities, resulting from a

 

 

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1State or federally declared disaster in Illinois or bordering
2Illinois when such repairs are initiated on facilities located
3in the declared disaster area within 6 months after the
4disaster.
5    (20) Beginning July 1, 1999, game or game birds sold at a
6"game breeding and hunting preserve area" as that term is used
7in the Wildlife Code. This paragraph is exempt from the
8provisions of Section 3-55.
9    (21) A motor vehicle, as that term is defined in Section
101-146 of the Illinois Vehicle Code, that is donated to a
11corporation, limited liability company, society, association,
12foundation, or institution that is determined by the
13Department to be organized and operated exclusively for
14educational purposes. For purposes of this exemption, "a
15corporation, limited liability company, society, association,
16foundation, or institution organized and operated exclusively
17for educational purposes" means all tax-supported public
18schools, private schools that offer systematic instruction in
19useful branches of learning by methods common to public
20schools and that compare favorably in their scope and
21intensity with the course of study presented in tax-supported
22schools, and vocational or technical schools or institutes
23organized and operated exclusively to provide a course of
24study of not less than 6 weeks duration and designed to prepare
25individuals to follow a trade or to pursue a manual,
26technical, mechanical, industrial, business, or commercial

 

 

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1occupation.
2    (22) Beginning January 1, 2000, personal property,
3including food, purchased through fundraising events for the
4benefit of a public or private elementary or secondary school,
5a group of those schools, or one or more school districts if
6the events are sponsored by an entity recognized by the school
7district that consists primarily of volunteers and includes
8parents and teachers of the school children. This paragraph
9does not apply to fundraising events (i) for the benefit of
10private home instruction or (ii) for which the fundraising
11entity purchases the personal property sold at the events from
12another individual or entity that sold the property for the
13purpose of resale by the fundraising entity and that profits
14from the sale to the fundraising entity. This paragraph is
15exempt from the provisions of Section 3-55.
16    (23) Beginning January 1, 2000 and through December 31,
172001, new or used automatic vending machines that prepare and
18serve hot food and beverages, including coffee, soup, and
19other items, and replacement parts for these machines.
20Beginning January 1, 2002 and through June 30, 2003, machines
21and parts for machines used in commercial, coin-operated
22amusement and vending business if a use or occupation tax is
23paid on the gross receipts derived from the use of the
24commercial, coin-operated amusement and vending machines. This
25paragraph is exempt from the provisions of Section 3-55.
26    (24) Beginning on August 2, 2001 (the effective date of

 

 

SB4164- 117 -LRB102 26254 HLH 36122 b

1Public Act 92-227), computers and communications equipment
2utilized for any hospital purpose and equipment used in the
3diagnosis, analysis, or treatment of hospital patients sold to
4a lessor who leases the equipment, under a lease of one year or
5longer executed or in effect at the time of the purchase, to a
6hospital that has been issued an active tax exemption
7identification number by the Department under Section 1g of
8the Retailers' Occupation Tax Act. This paragraph is exempt
9from the provisions of Section 3-55.
10    (25) Beginning on August 2, 2001 (the effective date of
11Public Act 92-227), personal property sold to a lessor who
12leases the property, under a lease of one year or longer
13executed or in effect at the time of the purchase, to a
14governmental body that has been issued an active tax exemption
15identification number by the Department under Section 1g of
16the Retailers' Occupation Tax Act. This paragraph is exempt
17from the provisions of Section 3-55.
18    (26) Beginning on January 1, 2002 and through June 30,
192016, tangible personal property purchased from an Illinois
20retailer by a taxpayer engaged in centralized purchasing
21activities in Illinois who will, upon receipt of the property
22in Illinois, temporarily store the property in Illinois (i)
23for the purpose of subsequently transporting it outside this
24State for use or consumption thereafter solely outside this
25State or (ii) for the purpose of being processed, fabricated,
26or manufactured into, attached to, or incorporated into other

 

 

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1tangible personal property to be transported outside this
2State and thereafter used or consumed solely outside this
3State. The Director of Revenue shall, pursuant to rules
4adopted in accordance with the Illinois Administrative
5Procedure Act, issue a permit to any taxpayer in good standing
6with the Department who is eligible for the exemption under
7this paragraph (26). The permit issued under this paragraph
8(26) shall authorize the holder, to the extent and in the
9manner specified in the rules adopted under this Act, to
10purchase tangible personal property from a retailer exempt
11from the taxes imposed by this Act. Taxpayers shall maintain
12all necessary books and records to substantiate the use and
13consumption of all such tangible personal property outside of
14the State of Illinois.
15    (27) Beginning January 1, 2008, tangible personal property
16used in the construction or maintenance of a community water
17supply, as defined under Section 3.145 of the Environmental
18Protection Act, that is operated by a not-for-profit
19corporation that holds a valid water supply permit issued
20under Title IV of the Environmental Protection Act. This
21paragraph is exempt from the provisions of Section 3-55.
22    (28) Tangible personal property sold to a
23public-facilities corporation, as described in Section
2411-65-10 of the Illinois Municipal Code, for purposes of
25constructing or furnishing a municipal convention hall, but
26only if the legal title to the municipal convention hall is

 

 

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1transferred to the municipality without any further
2consideration by or on behalf of the municipality at the time
3of the completion of the municipal convention hall or upon the
4retirement or redemption of any bonds or other debt
5instruments issued by the public-facilities corporation in
6connection with the development of the municipal convention
7hall. This exemption includes existing public-facilities
8corporations as provided in Section 11-65-25 of the Illinois
9Municipal Code. This paragraph is exempt from the provisions
10of Section 3-55.
11    (29) Beginning January 1, 2010 and continuing through
12December 31, 2024, materials, parts, equipment, components,
13and furnishings incorporated into or upon an aircraft as part
14of the modification, refurbishment, completion, replacement,
15repair, or maintenance of the aircraft. This exemption
16includes consumable supplies used in the modification,
17refurbishment, completion, replacement, repair, and
18maintenance of aircraft, but excludes any materials, parts,
19equipment, components, and consumable supplies used in the
20modification, replacement, repair, and maintenance of aircraft
21engines or power plants, whether such engines or power plants
22are installed or uninstalled upon any such aircraft.
23"Consumable supplies" include, but are not limited to,
24adhesive, tape, sandpaper, general purpose lubricants,
25cleaning solution, latex gloves, and protective films. This
26exemption applies only to the transfer of qualifying tangible

 

 

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1personal property incident to the modification, refurbishment,
2completion, replacement, repair, or maintenance of an aircraft
3by persons who (i) hold an Air Agency Certificate and are
4empowered to operate an approved repair station by the Federal
5Aviation Administration, (ii) have a Class IV Rating, and
6(iii) conduct operations in accordance with Part 145 of the
7Federal Aviation Regulations. The exemption does not include
8aircraft operated by a commercial air carrier providing
9scheduled passenger air service pursuant to authority issued
10under Part 121 or Part 129 of the Federal Aviation
11Regulations. The changes made to this paragraph (29) by Public
12Act 98-534 are declarative of existing law. It is the intent of
13the General Assembly that the exemption under this paragraph
14(29) applies continuously from January 1, 2010 through
15December 31, 2024; however, no claim for credit or refund is
16allowed for taxes paid as a result of the disallowance of this
17exemption on or after January 1, 2015 and prior to the
18effective date of this amendatory Act of the 101st General
19Assembly.
20    (30) Beginning January 1, 2017 and through December 31,
212026, menstrual pads, tampons, and menstrual cups.
22    (31) Tangible personal property transferred to a purchaser
23who is exempt from tax by operation of federal law. This
24paragraph is exempt from the provisions of Section 3-55.
25    (32) Qualified tangible personal property used in the
26construction or operation of a data center that has been

 

 

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1granted a certificate of exemption by the Department of
2Commerce and Economic Opportunity, whether that tangible
3personal property is purchased by the owner, operator, or
4tenant of the data center or by a contractor or subcontractor
5of the owner, operator, or tenant. Data centers that would
6have qualified for a certificate of exemption prior to January
71, 2020 had this amendatory Act of the 101st General Assembly
8been in effect, may apply for and obtain an exemption for
9subsequent purchases of computer equipment or enabling
10software purchased or leased to upgrade, supplement, or
11replace computer equipment or enabling software purchased or
12leased in the original investment that would have qualified.
13    The Department of Commerce and Economic Opportunity shall
14grant a certificate of exemption under this item (32) to
15qualified data centers as defined by Section 605-1025 of the
16Department of Commerce and Economic Opportunity Law of the
17Civil Administrative Code of Illinois.
18    For the purposes of this item (32):
19        "Data center" means a building or a series of
20    buildings rehabilitated or constructed to house working
21    servers in one physical location or multiple sites within
22    the State of Illinois.
23        "Qualified tangible personal property" means:
24    electrical systems and equipment; climate control and
25    chilling equipment and systems; mechanical systems and
26    equipment; monitoring and secure systems; emergency

 

 

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1    generators; hardware; computers; servers; data storage
2    devices; network connectivity equipment; racks; cabinets;
3    telecommunications cabling infrastructure; raised floor
4    systems; peripheral components or systems; software;
5    mechanical, electrical, or plumbing systems; battery
6    systems; cooling systems and towers; temperature control
7    systems; other cabling; and other data center
8    infrastructure equipment and systems necessary to operate
9    qualified tangible personal property, including fixtures;
10    and component parts of any of the foregoing, including
11    installation, maintenance, repair, refurbishment, and
12    replacement of qualified tangible personal property to
13    generate, transform, transmit, distribute, or manage
14    electricity necessary to operate qualified tangible
15    personal property; and all other tangible personal
16    property that is essential to the operations of a computer
17    data center. The term "qualified tangible personal
18    property" also includes building materials physically
19    incorporated in to the qualifying data center. To document
20    the exemption allowed under this Section, the retailer
21    must obtain from the purchaser a copy of the certificate
22    of eligibility issued by the Department of Commerce and
23    Economic Opportunity.
24    This item (32) is exempt from the provisions of Section
253-55.
26    (33) Beginning July 1, 2022, food prepared for immediate

 

 

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1consumption and transferred incident to a sale of service
2subject to this Act or the Service Occupation Tax Act by an
3entity licensed under the Hospital Licensing Act, the Nursing
4Home Care Act, the Assisted Living and Shared Housing Act, the
5ID/DD Community Care Act, the MC/DD Act, the Specialized
6Mental Health Rehabilitation Act of 2013, or the Child Care
7Act of 1969, or an entity that holds a permit issued pursuant
8to the Life Care Facilities Act; food for human consumption
9that is to be consumed off the premises where it is sold (other
10than alcoholic beverages, food consisting of or infused with
11adult use cannabis, soft drinks, and food that has been
12prepared for immediate consumption and is not otherwise
13included in this paragraph); and prescription and
14nonprescription medicines, drugs, medical appliances, products
15classified as Class III medical devices by the United States
16Food and Drug Administration that are used for cancer
17treatment pursuant to a prescription, as well as any
18accessories and components related to those devices,
19modifications to a motor vehicle for the purpose of rendering
20it usable by a person with a disability, and insulin, blood
21sugar testing materials, syringes, and needles used by human
22diabetics. This item (33) is exempt from the provisions of
23Section 3-55.
24(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
25101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
 

 

 

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1    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
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
4the "selling price", as defined in Section 2 of the Service Use
5Tax Act, of the tangible personal property. For the purpose of
6computing this tax, in no event shall the "selling price" be
7less than the cost price to the serviceman of the tangible
8personal property transferred. The selling price of each item
9of tangible personal property transferred as an incident of a
10sale of service may be shown as a distinct and separate item on
11the serviceman's billing to the service customer. If the
12selling price is not so shown, the selling price of the
13tangible personal property is deemed to be 50% of the
14serviceman's entire billing to the service customer. When,
15however, a serviceman contracts to design, develop, and
16produce special order machinery or equipment, the tax imposed
17by this Act shall be based on the serviceman's cost price of
18the tangible personal property transferred incident to the
19completion of the contract.
20    Beginning on July 1, 2000 and through December 31, 2000,
21with respect to motor fuel, as defined in Section 1.1 of the
22Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23the Use Tax Act, the tax is imposed at the rate of 1.25%.
24    With respect to gasohol, as defined in the Use Tax Act, the
25tax imposed by this Act shall apply to (i) 70% of the cost
26price of property transferred as an incident to the sale of

 

 

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1service on or after January 1, 1990, and before July 1, 2003,
2(ii) 80% of the selling price of property transferred as an
3incident to the sale of service on or after July 1, 2003 and on
4or before July 1, 2017, and (iii) 100% of the cost price
5thereafter. If, at any time, however, the tax under this Act on
6sales of gasohol, as defined in the Use Tax Act, is imposed at
7the rate of 1.25%, then the tax imposed by this Act applies to
8100% of the proceeds of sales of gasohol made during that time.
9    With respect to majority blended ethanol fuel, as defined
10in the Use Tax Act, the tax imposed by this Act does not apply
11to the selling price of property transferred as an incident to
12the sale of service on or after July 1, 2003 and on or before
13December 31, 2023 but applies to 100% of the selling price
14thereafter.
15    With respect to biodiesel blends, as defined in the Use
16Tax Act, with no less than 1% and no more than 10% biodiesel,
17the tax imposed by this Act applies to (i) 80% of the selling
18price of property transferred as an incident to the sale of
19service on or after July 1, 2003 and on or before December 31,
202018 and (ii) 100% of the proceeds of the selling price
21thereafter. If, at any time, however, the tax under this Act on
22sales of biodiesel blends, as defined in the Use Tax Act, with
23no less than 1% and no more than 10% biodiesel is imposed at
24the rate of 1.25%, then the tax imposed by this Act applies to
25100% of the proceeds of sales of biodiesel blends with no less
26than 1% and no more than 10% biodiesel made during that time.

 

 

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

 

 

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1an entity that holds a permit issued pursuant to the Life Care
2Facilities Act. Until July 1, 2022 the The tax shall also be
3imposed at the rate of 1% on food for human consumption that is
4to be consumed off the premises where it is sold (other than
5alcoholic beverages, food consisting of or infused with adult
6use cannabis, soft drinks, and food that has been prepared for
7immediate consumption and is not otherwise included in this
8paragraph) and prescription and nonprescription medicines,
9drugs, medical appliances, products classified as Class III
10medical devices by the United States Food and Drug
11Administration that are used for cancer treatment pursuant to
12a prescription, as well as any accessories and components
13related to those devices, modifications to a motor vehicle for
14the purpose of rendering it usable by a person with a
15disability, and insulin, blood sugar testing materials,
16syringes, and needles used by human diabetics. Beginning on
17July 1, 2022, items that had been subject to a 1% rate of tax
18under this paragraph shall be exempt as provided in item (33)
19of Section 3-5. For the purposes of this Section, until
20September 1, 2009: the term "soft drinks" means any complete,
21finished, 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
26can, carton, or container, regardless of size; but "soft

 

 

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1drinks" does not include coffee, tea, non-carbonated water,
2infant formula, milk or milk products as defined in the Grade A
3Pasteurized Milk and Milk Products Act, or drinks containing
450% 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 January 1, 2014 (the effective date of Public
24Act 98-122), "prescription and nonprescription medicines and
25drugs" includes medical cannabis purchased from a registered
26dispensing organization under the Compassionate Use of Medical

 

 

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1Cannabis 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; 102-16, eff. 6-17-21.)
 
9    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
10    Sec. 9. Each serviceman required or authorized to collect
11the tax herein imposed shall pay to the Department the amount
12of such tax at the time when he is required to file his return
13for the period during which such tax was collectible, less a
14discount of 2.1% prior to January 1, 1990, and 1.75% on and
15after January 1, 1990, or $5 per calendar year, whichever is
16greater, which is allowed to reimburse the serviceman for
17expenses incurred in collecting the tax, keeping records,
18preparing and filing returns, remitting the tax and supplying
19data to the Department on request. The discount under this
20Section is not allowed for the 1.25% portion of taxes paid on
21aviation fuel that is subject to the revenue use requirements
22of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The discount
23allowed under this Section is allowed only for returns that
24are filed in the manner required by this Act. The Department
25may disallow the discount for servicemen whose certificate of

 

 

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1registration is revoked at the time the return is filed, but
2only if the Department's decision to revoke the certificate of
3registration has become final.
4    Where such tangible personal property is sold under a
5conditional sales contract, or under any other form of sale
6wherein the payment of the principal sum, or a part thereof, is
7extended beyond the close of the period for which the return is
8filed, the serviceman, in collecting the tax may collect, for
9each tax return period, only the tax applicable to the part of
10the selling price actually received during such tax return
11period.
12    Except as provided hereinafter in this Section, on or
13before the twentieth day of each calendar month, such
14serviceman shall file a return for the preceding calendar
15month in accordance with reasonable rules and regulations to
16be promulgated by the Department of Revenue. Such return shall
17be filed on a form prescribed by the Department and shall
18contain such information as the Department may reasonably
19require. On and after January 1, 2018, with respect to
20servicemen whose annual gross receipts average $20,000 or
21more, all returns required to be filed pursuant to this Act
22shall be filed electronically. Servicemen who demonstrate that
23they do not have access to the Internet or demonstrate
24hardship in filing electronically may petition the Department
25to waive the electronic filing requirement.
26    The Department may require returns to be filed on a

 

 

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

 

 

SB4164- 133 -LRB102 26254 HLH 36122 b

1to the return shall be as otherwise provided in this Section.
2Notwithstanding any other provisions of this Act to the
3contrary, servicemen transferring aviation fuel incident to
4sales of service shall file all aviation fuel tax returns and
5shall make all aviation fuel tax payments by electronic means
6in the manner and form required by the Department. For
7purposes of this Section, "aviation fuel" means jet fuel and
8aviation gasoline.
9    If a taxpayer fails to sign a return within 30 days after
10the proper notice and demand for signature by the Department,
11the return shall be considered valid and any amount shown to be
12due on the return shall be deemed assessed.
13    Notwithstanding any other provision of this Act to the
14contrary, servicemen subject to tax on cannabis shall file all
15cannabis tax returns and shall make all cannabis tax payments
16by electronic means in the manner and form required by the
17Department.
18    Prior to October 1, 2003, and on and after September 1,
192004 a serviceman may accept a Manufacturer's Purchase Credit
20certification from a purchaser in satisfaction of Service Use
21Tax as provided in Section 3-70 of the Service Use Tax Act if
22the purchaser provides the appropriate documentation as
23required by Section 3-70 of the Service Use Tax Act. A
24Manufacturer's Purchase Credit certification, accepted prior
25to October 1, 2003 or on or after September 1, 2004 by a
26serviceman as provided in Section 3-70 of the Service Use Tax

 

 

SB4164- 134 -LRB102 26254 HLH 36122 b

1Act, may be used by that serviceman to satisfy Service
2Occupation Tax liability in the amount claimed in the
3certification, not to exceed 6.25% of the receipts subject to
4tax from a qualifying purchase. A Manufacturer's Purchase
5Credit reported on any original or amended return filed under
6this Act after October 20, 2003 for reporting periods prior to
7September 1, 2004 shall be disallowed. Manufacturer's Purchase
8Credit reported on annual returns due on or after January 1,
92005 will be disallowed for periods prior to September 1,
102004. No Manufacturer's Purchase Credit may be used after
11September 30, 2003 through August 31, 2004 to satisfy any tax
12liability imposed under this Act, including any audit
13liability.
14    If the serviceman's average monthly tax liability to the
15Department does not exceed $200, the Department may authorize
16his returns to be filed on a quarter annual basis, with the
17return for January, February and March of a given year being
18due by April 20 of such year; with the return for April, May
19and June of a given year being due by July 20 of such year;
20with the return for July, August and September of a given year
21being due by October 20 of such year, and with the return for
22October, November and December of a given year being due by
23January 20 of the following year.
24    If the serviceman's average monthly tax liability to the
25Department does not exceed $50, the Department may authorize
26his returns to be filed on an annual basis, with the return for

 

 

SB4164- 135 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 136 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 137 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 138 -LRB102 26254 HLH 36122 b

1registered business.
2    Beginning January 1, 1990 and until August 1, 2022, each
3month the Department shall pay into the Local Government Tax
4Fund the revenue realized for the preceding month from the 1%
5tax imposed under this Act.
6    Beginning August 1, 2022, the State Comptroller shall
7order transferred and the State Treasurer shall transfer from
8the General Revenue Fund to the Local Government Tax Fund, the
9amount deposited into the Local Government Tax Fund for the
10same month in calendar year 2021. On August 1 of each year, the
11amount transferred from the General Revenue Fund to the Local
12Government Tax Fund shall be increased by the percentage
13change, if any, in the Consumer Price Index for All Urban
14Consumers as issued by the United States Department of Labor
15for the most recent 12-month period for which data is
16available.
17    Beginning January 1, 1990, each month the Department shall
18pay into the County and Mass Transit District Fund 4% of the
19revenue realized for the preceding month from the 6.25%
20general rate on sales of tangible personal property other than
21aviation fuel sold on or after December 1, 2019. This
22exception for aviation fuel only applies for so long as the
23revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2447133 are binding on the State.
25    Beginning August 1, 2000, each month the Department shall
26pay into the County and Mass Transit District Fund 20% of the

 

 

SB4164- 139 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 140 -LRB102 26254 HLH 36122 b

1    Beginning October 1, 2009, each month the Department shall
2pay into the Capital Projects Fund an amount that is equal to
3an amount estimated by the Department to represent 80% of the
4net revenue realized for the preceding month from the sale of
5candy, grooming and hygiene products, and soft drinks that had
6been taxed at a rate of 1% prior to September 1, 2009 but that
7are now taxed at 6.25%.
8    Beginning July 1, 2013, each month the Department shall
9pay into the Underground Storage Tank Fund from the proceeds
10collected under this Act, the Use Tax Act, the Service Use Tax
11Act, and the Retailers' Occupation Tax Act an amount equal to
12the average monthly deficit in the Underground Storage Tank
13Fund during the prior year, as certified annually by the
14Illinois Environmental Protection Agency, but the total
15payment into the Underground Storage Tank Fund under this Act,
16the Use Tax Act, the Service Use Tax Act, and the Retailers'
17Occupation Tax Act shall not exceed $18,000,000 in any State
18fiscal year. As used in this paragraph, the "average monthly
19deficit" shall be equal to the difference between the average
20monthly claims for payment by the fund and the average monthly
21revenues deposited into the fund, excluding payments made
22pursuant to this paragraph.
23    Beginning July 1, 2015, of the remainder of the moneys
24received by the Department under the Use Tax Act, the Service
25Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
26each month the Department shall deposit $500,000 into the

 

 

SB4164- 141 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 142 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 143 -LRB102 26254 HLH 36122 b

1the Build Illinois Bond Account to the Build Illinois Bond
2Retirement and Interest Fund pursuant to Section 13 of the
3Build Illinois Bond Act, an amount equal to such deficiency
4shall be immediately paid from other moneys received by the
5Department pursuant to the Tax Acts to the Build Illinois
6Fund; provided, however, that any amounts paid to the Build
7Illinois Fund in any fiscal year pursuant to this sentence
8shall be deemed to constitute payments pursuant to clause (b)
9of the preceding sentence and shall reduce the amount
10otherwise payable for such fiscal year pursuant to clause (b)
11of the preceding sentence. The moneys received by the
12Department pursuant to this Act and required to be deposited
13into the Build Illinois Fund are subject to the pledge, claim
14and charge set forth in Section 12 of the Build Illinois Bond
15Act.
16    Subject to payment of amounts into the Build Illinois Fund
17as provided in the preceding paragraph or in any amendment
18thereto hereafter enacted, the following specified monthly
19installment of the amount requested in the certificate of the
20Chairman of the Metropolitan Pier and Exposition Authority
21provided under Section 8.25f of the State Finance Act, but not
22in excess of the sums designated as "Total Deposit", shall be
23deposited in the aggregate from collections under Section 9 of
24the Use Tax Act, Section 9 of the Service Use Tax Act, Section
259 of the Service Occupation Tax Act, and Section 3 of the
26Retailers' Occupation Tax Act into the McCormick Place

 

 

SB4164- 144 -LRB102 26254 HLH 36122 b

1Expansion Project Fund in the specified fiscal years.
 
2Fiscal YearTotal Deposit
31993         $0
41994 53,000,000
51995 58,000,000
61996 61,000,000
71997 64,000,000
81998 68,000,000
91999 71,000,000
102000 75,000,000
112001 80,000,000
122002 93,000,000
132003 99,000,000
142004103,000,000
152005108,000,000
162006113,000,000
172007119,000,000
182008126,000,000
192009132,000,000
202010139,000,000
212011146,000,000
222012153,000,000
232013161,000,000
242014170,000,000
252015179,000,000

 

 

SB4164- 145 -LRB102 26254 HLH 36122 b

12016189,000,000
22017199,000,000
32018210,000,000
42019221,000,000
52020233,000,000
62021300,000,000
72022300,000,000
82023300,000,000
92024 300,000,000
102025 300,000,000
112026 300,000,000
122027 375,000,000
132028 375,000,000
142029 375,000,000
152030 375,000,000
162031 375,000,000
172032 375,000,000
182033 375,000,000
192034375,000,000
202035375,000,000
212036450,000,000
22and
23each fiscal year
24thereafter that bonds
25are outstanding under
26Section 13.2 of the

 

 

SB4164- 146 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 147 -LRB102 26254 HLH 36122 b

1the revenue use requirements of 49 U.S.C. 47107(b) and 49
2U.S.C. 47133 are binding on the State.
3    Subject to payment of amounts into the Build Illinois Fund
4and the McCormick Place Expansion Project Fund pursuant to the
5preceding paragraphs or in any amendments thereto hereafter
6enacted, beginning July 1, 1993 and ending on September 30,
72013, the Department shall each month pay into the Illinois
8Tax Increment Fund 0.27% of 80% of the net revenue realized for
9the preceding month from the 6.25% general rate on the selling
10price of tangible personal property.
11    Subject to payment of amounts into the Build Illinois Fund
12and the McCormick Place Expansion Project Fund pursuant to the
13preceding paragraphs or in any amendments thereto hereafter
14enacted, beginning with the receipt of the first report of
15taxes paid by an eligible business and continuing for a
1625-year period, the Department shall each month pay into the
17Energy Infrastructure Fund 80% of the net revenue realized
18from the 6.25% general rate on the selling price of
19Illinois-mined coal that was sold to an eligible business. For
20purposes of this paragraph, the term "eligible business" means
21a new electric generating facility certified pursuant to
22Section 605-332 of the Department of Commerce and Economic
23Opportunity Law of the Civil Administrative Code of Illinois.
24    Subject to payment of amounts into the Build Illinois
25Fund, the McCormick Place Expansion Project Fund, the Illinois
26Tax Increment Fund, and the Energy Infrastructure Fund

 

 

SB4164- 148 -LRB102 26254 HLH 36122 b

1pursuant to the preceding paragraphs or in any amendments to
2this Section hereafter enacted, beginning on the first day of
3the first calendar month to occur on or after August 26, 2014
4(the effective date of Public Act 98-1098), each month, from
5the collections made under Section 9 of the Use Tax Act,
6Section 9 of the Service Use Tax Act, Section 9 of the Service
7Occupation Tax Act, and Section 3 of the Retailers' Occupation
8Tax Act, the Department shall pay into the Tax Compliance and
9Administration Fund, to be used, subject to appropriation, to
10fund additional auditors and compliance personnel at the
11Department of Revenue, an amount equal to 1/12 of 5% of 80% of
12the cash receipts collected during the preceding fiscal year
13by the Audit Bureau of the Department under the Use Tax Act,
14the Service Use Tax Act, the Service Occupation Tax Act, the
15Retailers' Occupation Tax Act, and associated local occupation
16and use taxes administered by the Department.
17    Subject to payments of amounts into the Build Illinois
18Fund, the McCormick Place Expansion Project Fund, the Illinois
19Tax Increment Fund, the Energy Infrastructure Fund, and the
20Tax Compliance and Administration Fund as provided in this
21Section, beginning on July 1, 2018 the Department shall pay
22each month into the Downstate Public Transportation Fund the
23moneys required to be so paid under Section 2-3 of the
24Downstate Public Transportation Act.
25    Subject to successful execution and delivery of a
26public-private agreement between the public agency and private

 

 

SB4164- 149 -LRB102 26254 HLH 36122 b

1entity and completion of the civic build, beginning on July 1,
22023, of the remainder of the moneys received by the
3Department under the Use Tax Act, the Service Use Tax Act, the
4Service Occupation Tax Act, and this Act, the Department shall
5deposit the following specified deposits in the aggregate from
6collections under the Use Tax Act, the Service Use Tax Act, the
7Service Occupation Tax Act, and the Retailers' Occupation Tax
8Act, as required under Section 8.25g of the State Finance Act
9for distribution consistent with the Public-Private
10Partnership for Civic and Transit Infrastructure Project Act.
11The moneys received by the Department pursuant to this Act and
12required to be deposited into the Civic and Transit
13Infrastructure Fund are subject to the pledge, claim and
14charge set forth in Section 25-55 of the Public-Private
15Partnership for Civic and Transit Infrastructure Project Act.
16As used in this paragraph, "civic build", "private entity",
17"public-private agreement", and "public agency" have the
18meanings provided in Section 25-10 of the Public-Private
19Partnership for Civic and Transit Infrastructure Project Act.
20        Fiscal Year............................Total Deposit
21        2024....................................$200,000,000
22        2025....................................$206,000,000
23        2026....................................$212,200,000
24        2027....................................$218,500,000
25        2028....................................$225,100,000
26        2029....................................$288,700,000

 

 

SB4164- 150 -LRB102 26254 HLH 36122 b

1        2030....................................$298,900,000
2        2031....................................$309,300,000
3        2032....................................$320,100,000
4        2033....................................$331,200,000
5        2034....................................$341,200,000
6        2035....................................$351,400,000
7        2036....................................$361,900,000
8        2037....................................$372,800,000
9        2038....................................$384,000,000
10        2039....................................$395,500,000
11        2040....................................$407,400,000
12        2041....................................$419,600,000
13        2042....................................$432,200,000
14        2043....................................$445,100,000
15    Beginning July 1, 2021 and until July 1, 2022, subject to
16the payment of amounts into the County and Mass Transit
17District Fund, the Local Government Tax Fund, the Build
18Illinois Fund, the McCormick Place Expansion Project Fund, the
19Illinois Tax Increment Fund, the Energy Infrastructure Fund,
20and the Tax Compliance and Administration Fund as provided in
21this Section, the Department shall pay each month into the
22Road Fund the amount estimated to represent 16% of the net
23revenue realized from the taxes imposed on motor fuel and
24gasohol. Beginning July 1, 2022 and until July 1, 2023,
25subject to the payment of amounts into the County and Mass
26Transit District Fund, the Local Government Tax Fund, the

 

 

SB4164- 151 -LRB102 26254 HLH 36122 b

1Build Illinois Fund, the McCormick Place Expansion Project
2Fund, the Illinois Tax Increment Fund, the Energy
3Infrastructure Fund, and the Tax Compliance and Administration
4Fund as provided in this Section, the Department shall pay
5each month into the Road Fund the amount estimated to
6represent 32% of the net revenue realized from the taxes
7imposed on motor fuel and gasohol. Beginning July 1, 2023 and
8until July 1, 2024, subject to the payment of amounts into the
9County and Mass Transit District Fund, the Local Government
10Tax Fund, the Build Illinois Fund, the McCormick Place
11Expansion Project Fund, the Illinois Tax Increment Fund, the
12Energy Infrastructure Fund, and the Tax Compliance and
13Administration Fund as provided in this Section, the
14Department shall pay each month into the Road Fund the amount
15estimated to represent 48% of the net revenue realized from
16the taxes imposed on motor fuel and gasohol. Beginning July 1,
172024 and until July 1, 2025, subject to the payment of amounts
18into the County and Mass Transit District Fund, the Local
19Government Tax Fund, the Build Illinois Fund, the McCormick
20Place Expansion Project Fund, the Illinois Tax Increment Fund,
21the Energy Infrastructure Fund, and the Tax Compliance and
22Administration Fund as provided in this Section, the
23Department shall pay each month into the Road Fund the amount
24estimated to represent 64% of the net revenue realized from
25the taxes imposed on motor fuel and gasohol. Beginning on July
261, 2025, subject to the payment of amounts into the County and

 

 

SB4164- 152 -LRB102 26254 HLH 36122 b

1Mass Transit District Fund, the Local Government Tax Fund, the
2Build Illinois Fund, the McCormick Place Expansion Project
3Fund, the Illinois Tax Increment Fund, the Energy
4Infrastructure Fund, and the Tax Compliance and Administration
5Fund as provided in this Section, the Department shall pay
6each month into the Road Fund the amount estimated to
7represent 80% of the net revenue realized from the taxes
8imposed on motor fuel and gasohol. As used in this paragraph
9"motor fuel" has the meaning given to that term in Section 1.1
10of the Motor Fuel Tax Act, and "gasohol" has the meaning given
11to that term in Section 3-40 of the Use Tax Act.
12    Of the remainder of the moneys received by the Department
13pursuant to this Act, 75% shall be paid into the General
14Revenue Fund of the State Treasury and 25% shall be reserved in
15a special account and used only for the transfer to the Common
16School Fund as part of the monthly transfer from the General
17Revenue Fund in accordance with Section 8a of the State
18Finance Act.
19    The Department may, upon separate written notice to a
20taxpayer, require the taxpayer to prepare and file with the
21Department on a form prescribed by the Department within not
22less than 60 days after receipt of the notice an annual
23information return for the tax year specified in the notice.
24Such annual return to the Department shall include a statement
25of gross receipts as shown by the taxpayer's last Federal
26income tax return. If the total receipts of the business as

 

 

SB4164- 153 -LRB102 26254 HLH 36122 b

1reported in the Federal income tax return do not agree with the
2gross receipts reported to the Department of Revenue for the
3same period, the taxpayer shall attach to his annual return a
4schedule showing a reconciliation of the 2 amounts and the
5reasons for the difference. The taxpayer's annual return to
6the Department shall also disclose the cost of goods sold by
7the taxpayer during the year covered by such return, opening
8and closing inventories of such goods for such year, cost of
9goods used from stock or taken from stock and given away by the
10taxpayer during such year, pay roll information of the
11taxpayer's business during such year and any additional
12reasonable information which the Department deems would be
13helpful in determining the accuracy of the monthly, quarterly
14or annual returns filed by such taxpayer as hereinbefore
15provided for in this Section.
16    If the annual information return required by this Section
17is not filed when and as required, the taxpayer shall be liable
18as follows:
19        (i) Until January 1, 1994, the taxpayer shall be
20    liable for a penalty equal to 1/6 of 1% of the tax due from
21    such taxpayer under this Act during the period to be
22    covered by the annual return for each month or fraction of
23    a month until such return is filed as required, the
24    penalty to be assessed and collected in the same manner as
25    any other penalty provided for in this Act.
26        (ii) On and after January 1, 1994, the taxpayer shall

 

 

SB4164- 154 -LRB102 26254 HLH 36122 b

1    be liable for a penalty as described in Section 3-4 of the
2    Uniform Penalty and Interest Act.
3    The chief executive officer, proprietor, owner or highest
4ranking manager shall sign the annual return to certify the
5accuracy of the information contained therein. Any person who
6willfully signs the annual return containing false or
7inaccurate information shall be guilty of perjury and punished
8accordingly. The annual return form prescribed by the
9Department shall include a warning that the person signing the
10return may be liable for perjury.
11    The foregoing portion of this Section concerning the
12filing of an annual information return shall not apply to a
13serviceman who is not required to file an income tax return
14with the United States Government.
15    As soon as possible after the first day of each month, upon
16certification of the Department of Revenue, the Comptroller
17shall order transferred and the Treasurer shall transfer from
18the General Revenue Fund to the Motor Fuel Tax Fund an amount
19equal to 1.7% of 80% of the net revenue realized under this Act
20for the second preceding month. Beginning April 1, 2000, this
21transfer is no longer required and shall not be made.
22    Net revenue realized for a month shall be the revenue
23collected by the State pursuant to this Act, less the amount
24paid out during that month as refunds to taxpayers for
25overpayment of liability.
26    For greater simplicity of administration, it shall be

 

 

SB4164- 155 -LRB102 26254 HLH 36122 b

1permissible for manufacturers, importers and wholesalers whose
2products are sold by numerous servicemen in Illinois, and who
3wish to do so, to assume the responsibility for accounting and
4paying to the Department all tax accruing under this Act with
5respect to such sales, if the servicemen who are affected do
6not make written objection to the Department to this
7arrangement.
8(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
9100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
1015, Section 15-20, eff. 6-5-19; 101-10, Article 25, Section
1125-115, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
126-28-19; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
 
13    Section 20. The Retailers' Occupation Tax Act is amended
14by changing Sections 2-5, 2-10, and 3 as follows:
 
15    (35 ILCS 120/2-5)
16    Sec. 2-5. Exemptions. Gross receipts from proceeds from
17the sale of the following tangible personal property are
18exempt from the tax imposed by this Act:
19        (1) Farm chemicals.
20        (2) Farm machinery and equipment, both new and used,
21    including that manufactured on special order, certified by
22    the purchaser to be used primarily for production
23    agriculture or State or federal agricultural programs,
24    including individual replacement parts for the machinery

 

 

SB4164- 156 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 157 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 158 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 159 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 160 -LRB102 26254 HLH 36122 b

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

 

 

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

 

 

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

 

 

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

 

 

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1    2013 (the effective date of Public Act 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

 

 

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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

 

 

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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        (46) Beginning July 1, 2022, food for human
21    consumption that is to be consumed off the premises where
22    it is sold (other than alcoholic beverages, food
23    consisting of or infused with adult use cannabis, soft
24    drinks, and food that has been prepared for immediate
25    consumption) and prescription and nonprescription
26    medicines, drugs, medical appliances, products classified

 

 

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1    as Class III medical devices by the United States Food and
2    Drug Administration that are used for cancer treatment
3    pursuant to a prescription, as well as any accessories and
4    components related to those devices, modifications to a
5    motor vehicle for the purpose of rendering it usable by a
6    person with a disability, and insulin, blood sugar testing
7    materials, syringes, and needles used by human diabetics.
8    This item (46) is exempt from the provisions of Section
9    2-70.
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; 102-634, eff.
128-27-21; revised 11-9-21.)
 
13    (35 ILCS 120/2-10)
14    Sec. 2-10. Rate of tax. Unless otherwise provided in this
15Section, the tax imposed by this Act is at the rate of 6.25% of
16gross receipts from sales of tangible personal property made
17in the course of business.
18    Beginning on July 1, 2000 and through December 31, 2000,
19with respect to motor fuel, as defined in Section 1.1 of the
20Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
21the Use Tax Act, the tax is imposed at the rate of 1.25%.
22    Beginning on August 6, 2010 through August 15, 2010, with
23respect to sales tax holiday items as defined in Section 2-8 of
24this Act, the tax is imposed at the rate of 1.25%.
25    Within 14 days after the effective date of this amendatory

 

 

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1Act of the 91st General Assembly, each retailer of motor fuel
2and gasohol shall cause the following notice to be posted in a
3prominently visible place on each retail dispensing device
4that is used to dispense motor fuel or gasohol in the State of
5Illinois: "As of July 1, 2000, the State of Illinois has
6eliminated the State's share of sales tax on motor fuel and
7gasohol through December 31, 2000. The price on this pump
8should reflect the elimination of the tax." The notice shall
9be printed in bold print on a sign that is no smaller than 4
10inches by 8 inches. The sign shall be clearly visible to
11customers. Any retailer who fails to post or maintain a
12required sign through December 31, 2000 is guilty of a petty
13offense for which the fine shall be $500 per day per each
14retail premises where a violation occurs.
15    With respect to gasohol, as defined in the Use Tax Act, the
16tax imposed by this Act applies to (i) 70% of the proceeds of
17sales made on or after January 1, 1990, and before July 1,
182003, (ii) 80% of the proceeds of sales made on or after July
191, 2003 and on or before July 1, 2017, and (iii) 100% of the
20proceeds of sales made thereafter. If, at any time, however,
21the tax under this Act on sales of gasohol, as defined in the
22Use Tax Act, is imposed at the rate of 1.25%, then the tax
23imposed by this Act applies to 100% of the proceeds of sales of
24gasohol made during that time.
25    With respect to majority blended ethanol fuel, as defined
26in the Use Tax Act, the tax imposed by this Act does not apply

 

 

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1to the proceeds of sales made on or after July 1, 2003 and on
2or before December 31, 2023 but applies to 100% of the proceeds
3of sales made thereafter.
4    With respect to biodiesel blends, as defined in the Use
5Tax Act, with no less than 1% and no more than 10% biodiesel,
6the tax imposed by this Act applies to (i) 80% of the proceeds
7of sales made on or after July 1, 2003 and on or before
8December 31, 2018 and (ii) 100% of the proceeds of sales made
9thereafter. If, at any time, however, the tax under this Act on
10sales of biodiesel blends, as defined in the Use Tax Act, with
11no less than 1% and no more than 10% biodiesel is imposed at
12the rate of 1.25%, then the tax imposed by this Act applies to
13100% of the proceeds of sales of biodiesel blends with no less
14than 1% and no more than 10% biodiesel made during that time.
15    With respect to 100% biodiesel, as defined in the Use Tax
16Act, and biodiesel blends, as defined in the Use Tax Act, with
17more than 10% but no more than 99% biodiesel, the tax imposed
18by this Act does not apply to the proceeds of sales made on or
19after July 1, 2003 and on or before December 31, 2023 but
20applies to 100% of the proceeds of sales made thereafter.
21    Until July 1, 2022, with With respect to food for human
22consumption that is to be consumed off the premises where it is
23sold (other than alcoholic beverages, food consisting of or
24infused with adult use cannabis, soft drinks, and food that
25has been prepared for immediate consumption) and prescription
26and nonprescription medicines, drugs, medical appliances,

 

 

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1products classified as Class III medical devices by the United
2States Food and Drug Administration that are used for cancer
3treatment pursuant to a prescription, as well as any
4accessories and components related to those devices,
5modifications to a motor vehicle for the purpose of rendering
6it usable by a person with a disability, and insulin, blood
7sugar testing materials, syringes, and needles used by human
8diabetics, the tax is imposed at the rate of 1%. Beginning on
9July 1, 2022, items that had been subject to a 1% rate of tax
10under this paragraph shall be exempt as provided in item (46)
11of Section 2-5. For the purposes of this Section, until
12September 1, 2009: the term "soft drinks" means any complete,
13finished, ready-to-use, non-alcoholic drink, whether
14carbonated or not, including but not limited to soda water,
15cola, fruit juice, vegetable juice, carbonated water, and all
16other preparations commonly known as soft drinks of whatever
17kind or description that are contained in any closed or sealed
18bottle, can, carton, or container, regardless of size; but
19"soft drinks" does not include coffee, tea, non-carbonated
20water, infant formula, milk or milk products as defined in the
21Grade A Pasteurized Milk and Milk Products Act, or drinks
22containing 50% or more natural fruit or vegetable juice.
23    Notwithstanding any other provisions of this Act,
24beginning September 1, 2009, "soft drinks" means non-alcoholic
25beverages that contain natural or artificial sweeteners. "Soft
26drinks" do not include beverages that contain milk or milk

 

 

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

 

 

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1purposes of this Section, "grooming and hygiene products"
2includes, but is not limited to, soaps and cleaning solutions,
3shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
4lotions and screens, unless those products are available by
5prescription only, regardless of whether the products meet the
6definition of "over-the-counter-drugs". For the purposes of
7this paragraph, "over-the-counter-drug" means a drug for human
8use that contains a label that identifies the product as a drug
9as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
10label includes:
11        (A) A "Drug Facts" panel; or
12        (B) A statement of the "active ingredient(s)" with a
13    list of those ingredients contained in the compound,
14    substance or preparation.
15    Beginning on the effective date of this amendatory Act of
16the 98th General Assembly, "prescription and nonprescription
17medicines and drugs" includes medical cannabis purchased from
18a registered dispensing organization under the Compassionate
19Use of Medical Cannabis Program Act.
20    As used in this Section, "adult use cannabis" means
21cannabis subject to tax under the Cannabis Cultivation
22Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
23and does not include cannabis subject to tax under the
24Compassionate Use of Medical Cannabis Program Act.
25(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
26102-4, eff. 4-27-21.)
 

 

 

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

 

 

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1    of which the tax is imposed;
2        7. The amount of credit provided in Section 2d of this
3    Act;
4        8. The amount of tax due;
5        9. The signature of the taxpayer; and
6        10. Such other reasonable information as the
7    Department may require.
8    On and after January 1, 2018, except for returns for motor
9vehicles, watercraft, aircraft, and trailers that are required
10to be registered with an agency of this State, with respect to
11retailers whose annual gross receipts average $20,000 or more,
12all returns required to be filed pursuant to this Act shall be
13filed electronically. Retailers who demonstrate that they do
14not have access to the Internet or demonstrate hardship in
15filing electronically may petition the Department to waive the
16electronic filing requirement.
17    If a taxpayer fails to sign a return within 30 days after
18the proper notice and demand for signature by the Department,
19the return shall be considered valid and any amount shown to be
20due on the return shall be deemed assessed.
21    Each return shall be accompanied by the statement of
22prepaid tax issued pursuant to Section 2e for which credit is
23claimed.
24    Prior to October 1, 2003, and on and after September 1,
252004 a retailer may accept a Manufacturer's Purchase Credit
26certification from a purchaser in satisfaction of Use Tax as

 

 

SB4164- 188 -LRB102 26254 HLH 36122 b

1provided in Section 3-85 of the Use Tax Act if the purchaser
2provides the appropriate documentation as required by Section
33-85 of the Use Tax Act. A Manufacturer's Purchase Credit
4certification, accepted by a retailer prior to October 1, 2003
5and on and after September 1, 2004 as provided in Section 3-85
6of the Use Tax Act, may be used by that retailer to satisfy
7Retailers' Occupation Tax liability in the amount claimed in
8the certification, not to exceed 6.25% of the receipts subject
9to tax from a qualifying purchase. A Manufacturer's Purchase
10Credit reported on any original or amended return filed under
11this Act after October 20, 2003 for reporting periods prior to
12September 1, 2004 shall be disallowed. Manufacturer's Purchase
13Purchaser Credit reported on annual returns due on or after
14January 1, 2005 will be disallowed for periods prior to
15September 1, 2004. No Manufacturer's Purchase Credit may be
16used after September 30, 2003 through August 31, 2004 to
17satisfy any tax liability imposed under this Act, including
18any audit liability.
19    The Department may require returns to be filed on a
20quarterly basis. If so required, a return for each calendar
21quarter shall be filed on or before the twentieth day of the
22calendar month following the end of such calendar quarter. The
23taxpayer shall also file a return with the Department for each
24of the first two months of each calendar quarter, on or before
25the twentieth day of the following calendar month, stating:
26        1. The name of the seller;

 

 

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1        2. The address of the principal place of business from
2    which he engages in the business of selling tangible
3    personal property at retail in this State;
4        3. The total amount of taxable receipts received by
5    him during the preceding calendar month from sales of
6    tangible personal property by him during such preceding
7    calendar month, including receipts from charge and time
8    sales, but less all deductions allowed by law;
9        4. The amount of credit provided in Section 2d of this
10    Act;
11        5. The amount of tax due; and
12        6. Such other reasonable information as the Department
13    may require.
14    Every person engaged in the business of selling aviation
15fuel at retail in this State during the preceding calendar
16month shall, instead of reporting and paying tax as otherwise
17required by this Section, report and pay such tax on a separate
18aviation fuel tax return. The requirements related to the
19return shall be as otherwise provided in this Section.
20Notwithstanding any other provisions of this Act to the
21contrary, retailers selling aviation fuel shall file all
22aviation fuel tax returns and shall make all aviation fuel tax
23payments by electronic means in the manner and form required
24by the Department. For purposes of this Section, "aviation
25fuel" means jet fuel and aviation gasoline.
26    Beginning on October 1, 2003, any person who is not a

 

 

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

 

 

SB4164- 191 -LRB102 26254 HLH 36122 b

1electronic means to each retailer listed on the monthly
2statement a report containing a cumulative total of that
3distributor's, importing distributor's, or manufacturer's
4total sales of alcoholic liquor to that retailer no later than
5the 10th day of the month for the preceding month during which
6the transaction occurred. The distributor, importing
7distributor, or manufacturer shall notify the retailer as to
8the method by which the distributor, importing distributor, or
9manufacturer will provide the sales information. If the
10retailer is unable to receive the sales information by
11electronic means, the distributor, importing distributor, or
12manufacturer shall furnish the sales information by personal
13delivery or by mail. For purposes of this paragraph, the term
14"electronic means" includes, but is not limited to, the use of
15a secure Internet website, e-mail, or facsimile.
16    If a total amount of less than $1 is payable, refundable or
17creditable, such amount shall be disregarded if it is less
18than 50 cents and shall be increased to $1 if it is 50 cents or
19more.
20    Notwithstanding any other provision of this Act to the
21contrary, retailers subject to tax on cannabis shall file all
22cannabis tax returns and shall make all cannabis tax payments
23by electronic means in the manner and form required by the
24Department.
25    Beginning October 1, 1993, a taxpayer who has an average
26monthly tax liability of $150,000 or more shall make all

 

 

SB4164- 192 -LRB102 26254 HLH 36122 b

1payments required by rules of the Department by electronic
2funds transfer. Beginning October 1, 1994, a taxpayer who has
3an average monthly tax liability of $100,000 or more shall
4make all payments required by rules of the Department by
5electronic funds transfer. Beginning October 1, 1995, a
6taxpayer who has an average monthly tax liability of $50,000
7or more shall make all payments required by rules of the
8Department by electronic funds transfer. Beginning October 1,
92000, a taxpayer who has an annual tax liability of $200,000 or
10more shall make all payments required by rules of the
11Department by electronic funds transfer. The term "annual tax
12liability" shall be the sum of the taxpayer's liabilities
13under this Act, and under all other State and local occupation
14and use tax laws administered by the Department, for the
15immediately preceding calendar year. The term "average monthly
16tax liability" shall be the sum of the taxpayer's liabilities
17under this Act, and under all other State and local occupation
18and use tax laws administered by the Department, for the
19immediately preceding calendar year divided by 12. Beginning
20on October 1, 2002, a taxpayer who has a tax liability in the
21amount set forth in subsection (b) of Section 2505-210 of the
22Department of Revenue Law shall make all payments required by
23rules of the Department by electronic funds transfer.
24    Before August 1 of each year beginning in 1993, the
25Department shall notify all taxpayers required to make
26payments by electronic funds transfer. All taxpayers required

 

 

SB4164- 193 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 194 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 195 -LRB102 26254 HLH 36122 b

1    In addition, with respect to motor vehicles, watercraft,
2aircraft, and trailers that are required to be registered with
3an agency of this State, except as otherwise provided in this
4Section, every retailer selling this kind of tangible personal
5property shall file, with the Department, upon a form to be
6prescribed and supplied by the Department, a separate return
7for each such item of tangible personal property which the
8retailer sells, except that if, in the same transaction, (i) a
9retailer of aircraft, watercraft, motor vehicles or trailers
10transfers more than one aircraft, watercraft, motor vehicle or
11trailer to another aircraft, watercraft, motor vehicle
12retailer or trailer retailer for the purpose of resale or (ii)
13a retailer of aircraft, watercraft, motor vehicles, or
14trailers transfers more than one aircraft, watercraft, motor
15vehicle, or trailer to a purchaser for use as a qualifying
16rolling stock as provided in Section 2-5 of this Act, then that
17seller may report the transfer of all aircraft, watercraft,
18motor vehicles or trailers involved in that transaction to the
19Department on the same uniform invoice-transaction reporting
20return form. For purposes of this Section, "watercraft" means
21a Class 2, Class 3, or Class 4 watercraft as defined in Section
223-2 of the Boat Registration and Safety Act, a personal
23watercraft, or any boat equipped with an inboard motor.
24    In addition, with respect to motor vehicles, watercraft,
25aircraft, and trailers that are required to be registered with
26an agency of this State, every person who is engaged in the

 

 

SB4164- 196 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 197 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 198 -LRB102 26254 HLH 36122 b

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

 

 

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

 

 

SB4164- 200 -LRB102 26254 HLH 36122 b

1credited by the Department to the proper retailer's account
2with the Department, but without the 2.1% or 1.75% discount
3provided for in this Section being allowed. When the user pays
4the tax directly to the Department, he shall pay the tax in the
5same amount and in the same form in which it would be remitted
6if the tax had been remitted to the Department by the retailer.
7    Refunds made by the seller during the preceding return
8period to purchasers, on account of tangible personal property
9returned to the seller, shall be allowed as a deduction under
10subdivision 5 of his monthly or quarterly return, as the case
11may be, in case the seller had theretofore included the
12receipts from the sale of such tangible personal property in a
13return filed by him and had paid the tax imposed by this Act
14with respect to such receipts.
15    Where the seller is a corporation, the return filed on
16behalf of such corporation shall be signed by the president,
17vice-president, secretary or treasurer or by the properly
18accredited agent of such corporation.
19    Where the seller is a limited liability company, the
20return filed on behalf of the limited liability company shall
21be signed by a manager, member, or properly accredited agent
22of the limited liability company.
23    Except as provided in this Section, the retailer filing
24the return under this Section shall, at the time of filing such
25return, pay to the Department the amount of tax imposed by this
26Act less a discount of 2.1% prior to January 1, 1990 and 1.75%

 

 

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1on and after January 1, 1990, or $5 per calendar year,
2whichever is greater, which is allowed to reimburse the
3retailer for the expenses incurred in keeping records,
4preparing and filing returns, remitting the tax and supplying
5data to the Department on request. On and after January 1,
62021, a certified service provider, as defined in the Leveling
7the Playing Field for Illinois Retail Act, filing the return
8under this Section on behalf of a remote retailer shall, at the
9time of such return, pay to the Department the amount of tax
10imposed by this Act less a discount of 1.75%. A remote retailer
11using a certified service provider to file a return on its
12behalf, as provided in the Leveling the Playing Field for
13Illinois Retail Act, is not eligible for the discount. 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. Any prepayment made pursuant to Section 2d of this Act
18shall be included in the amount on which such 2.1% or 1.75%
19discount is computed. In the case of retailers who report and
20pay the tax on a transaction by transaction basis, as provided
21in this Section, such discount shall be taken with each such
22tax remittance instead of when such retailer files his
23periodic return. The discount allowed under this Section is
24allowed only for returns that are filed in the manner required
25by this Act. The Department may disallow the discount for
26retailers whose certificate of registration is revoked at the

 

 

SB4164- 202 -LRB102 26254 HLH 36122 b

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

 

 

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1prior to January 1, 1985, each payment shall be in an amount
2equal to 1/4 of the taxpayer's actual liability for the month
3or an amount set by the Department not to exceed 1/4 of the
4average monthly liability of the taxpayer to the Department
5for the preceding 4 complete calendar quarters (excluding the
6month of highest liability and the month of lowest liability
7in such 4 quarter period). If the month during which such tax
8liability is incurred begins on or after January 1, 1985 and
9prior to January 1, 1987, each payment shall be in an amount
10equal to 22.5% of the taxpayer's actual liability for the
11month or 27.5% of the taxpayer's liability for the same
12calendar month of the preceding year. If the month during
13which such tax liability is incurred begins on or after
14January 1, 1987 and prior to January 1, 1988, each payment
15shall be in an amount equal to 22.5% of the taxpayer's actual
16liability for the month or 26.25% of the taxpayer's liability
17for the same calendar month of the preceding year. If the month
18during which such tax liability is incurred begins on or after
19January 1, 1988, and prior to January 1, 1989, or begins on or
20after January 1, 1996, each payment shall be in an amount equal
21to 22.5% of the taxpayer's actual liability for the month or
2225% of the taxpayer's liability for the same calendar month of
23the preceding year. If the month during which such tax
24liability is incurred begins on or after January 1, 1989, and
25prior to January 1, 1996, each payment shall be in an amount
26equal to 22.5% of the taxpayer's actual liability for the

 

 

SB4164- 204 -LRB102 26254 HLH 36122 b

1month or 25% of the taxpayer's liability for the same calendar
2month of the preceding year or 100% of the taxpayer's actual
3liability for the quarter monthly reporting period. The amount
4of such quarter monthly payments shall be credited against the
5final tax liability of the taxpayer's return for that month.
6Before October 1, 2000, once applicable, the requirement of
7the making of quarter monthly payments to the Department by
8taxpayers having an average monthly tax liability of $10,000
9or more as determined in the manner provided above shall
10continue until such taxpayer's average monthly liability to
11the Department during the preceding 4 complete calendar
12quarters (excluding the month of highest liability and the
13month of lowest liability) is less than $9,000, or until such
14taxpayer's average monthly liability to the Department as
15computed for each calendar quarter of the 4 preceding complete
16calendar quarter period is less than $10,000. However, if a
17taxpayer can show the Department that a substantial change in
18the taxpayer's business has occurred which causes the taxpayer
19to anticipate that his average monthly tax liability for the
20reasonably foreseeable future will fall below the $10,000
21threshold stated above, then such taxpayer may petition the
22Department for a change in such taxpayer's reporting status.
23On and after October 1, 2000, once applicable, the requirement
24of the making of quarter monthly payments to the Department by
25taxpayers having an average monthly tax liability of $20,000
26or more as determined in the manner provided above shall

 

 

SB4164- 205 -LRB102 26254 HLH 36122 b

1continue until such taxpayer's average monthly liability to
2the Department during the preceding 4 complete calendar
3quarters (excluding the month of highest liability and the
4month of lowest liability) is less than $19,000 or until such
5taxpayer's average monthly liability to the Department as
6computed for each calendar quarter of the 4 preceding complete
7calendar quarter period is less than $20,000. However, if a
8taxpayer can show the Department that a substantial change in
9the taxpayer's business has occurred which causes the taxpayer
10to anticipate that his average monthly tax liability for the
11reasonably foreseeable future will fall below the $20,000
12threshold stated above, then such taxpayer may petition the
13Department for a change in such taxpayer's reporting status.
14The Department shall change such taxpayer's reporting status
15unless it finds that such change is seasonal in nature and not
16likely to be long term. If any such quarter monthly payment is
17not paid at the time or in the amount required by this Section,
18then the taxpayer shall be liable for penalties and interest
19on the difference between the minimum amount due as a payment
20and the amount of such quarter monthly payment actually and
21timely paid, except insofar as the taxpayer has previously
22made payments for that month to the Department in excess of the
23minimum payments previously due as provided in this Section.
24The Department shall make reasonable rules and regulations to
25govern the quarter monthly payment amount and quarter monthly
26payment dates for taxpayers who file on other than a calendar

 

 

SB4164- 206 -LRB102 26254 HLH 36122 b

1monthly basis.
2    The provisions of this paragraph apply before October 1,
32001. Without regard to whether a taxpayer is required to make
4quarter monthly payments as specified above, any taxpayer who
5is required by Section 2d of this Act to collect and remit
6prepaid taxes and has collected prepaid taxes which average in
7excess of $25,000 per month during the preceding 2 complete
8calendar quarters, shall file a return with the Department as
9required by Section 2f and shall make payments to the
10Department on or before the 7th, 15th, 22nd and last day of the
11month during which such liability is incurred. If the month
12during which such tax liability is incurred began prior to
13September 1, 1985 (the effective date of Public Act 84-221),
14each payment shall be in an amount not less than 22.5% of the
15taxpayer's actual liability under Section 2d. If the month
16during which such tax liability is incurred begins on or after
17January 1, 1986, each payment shall be in an amount equal to
1822.5% of the taxpayer's actual liability for the month or
1927.5% of the taxpayer's liability for the same calendar month
20of the preceding calendar year. If the month during which such
21tax liability is incurred begins on or after January 1, 1987,
22each payment shall be in an amount equal to 22.5% of the
23taxpayer's actual liability for the month or 26.25% of the
24taxpayer's liability for the same calendar month of the
25preceding year. The amount of such quarter monthly payments
26shall be credited against the final tax liability of the

 

 

SB4164- 207 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 208 -LRB102 26254 HLH 36122 b

1taxpayer's return for that month filed under this Section or
2Section 2f, as the case may be. Once applicable, the
3requirement of the making of quarter monthly payments to the
4Department pursuant to this paragraph shall continue until the
5taxpayer's average monthly prepaid tax collections during the
6preceding 4 complete calendar quarters (excluding the month of
7highest liability and the month of lowest liability) is less
8than $19,000 or until such taxpayer's average monthly
9liability to the Department as computed for each calendar
10quarter of the 4 preceding complete calendar quarters is less
11than $20,000. If any such quarter monthly payment is not paid
12at the time or in the amount required, the taxpayer shall be
13liable for penalties and interest on such difference, except
14insofar as the taxpayer has previously made payments for that
15month in excess of the minimum payments previously due.
16    If any payment provided for in this Section exceeds the
17taxpayer's liabilities under this Act, the Use Tax Act, the
18Service Occupation Tax Act and the Service Use Tax Act, as
19shown on an original monthly return, the Department shall, if
20requested by the taxpayer, issue to the taxpayer a credit
21memorandum no later than 30 days after the date of payment. The
22credit evidenced by such credit memorandum may be assigned by
23the taxpayer to a similar taxpayer under this Act, the Use Tax
24Act, the Service Occupation Tax Act or the Service Use Tax Act,
25in accordance with reasonable rules and regulations to be
26prescribed by the Department. If no such request is made, the

 

 

SB4164- 209 -LRB102 26254 HLH 36122 b

1taxpayer may credit such excess payment against tax liability
2subsequently to be remitted to the Department under this Act,
3the Use Tax Act, the Service Occupation Tax Act or the Service
4Use Tax Act, in accordance with reasonable rules and
5regulations prescribed by the Department. If the Department
6subsequently determined that all or any part of the credit
7taken was not actually due to the taxpayer, the taxpayer's
82.1% and 1.75% vendor's discount shall be reduced by 2.1% or
91.75% of the difference between the credit taken and that
10actually due, and that taxpayer shall be liable for penalties
11and interest on such difference.
12    If a retailer of motor fuel is entitled to a credit under
13Section 2d of this Act which exceeds the taxpayer's liability
14to the Department under this Act for the month for which the
15taxpayer is filing a return, the Department shall issue the
16taxpayer a credit memorandum for the excess.
17    Beginning January 1, 1990 and until August 1, 2022, each
18month the Department shall pay into the Local Government Tax
19Fund, a special fund in the State treasury which is hereby
20created, the net revenue realized for the preceding month from
21the 1% tax imposed under this Act.
22    Beginning August 1, 2022, the State Comptroller shall
23order transferred and the State Treasurer shall transfer from
24the General Revenue Fund to the Local Government Tax Fund, the
25amount deposited into the Local Government Tax Fund for the
26same month in calendar year 2021. On August 1 of each year, the

 

 

SB4164- 210 -LRB102 26254 HLH 36122 b

1amount transferred from the General Revenue Fund to the Local
2Government Tax Fund shall be increased by the percentage
3change, if any, in the Consumer Price Index for All Urban
4Consumers as issued by the United States Department of Labor
5for the most recent 12-month period for which data is
6available.
7    Beginning January 1, 1990, each month the Department shall
8pay into the County and Mass Transit District Fund, a special
9fund in the State treasury which is hereby created, 4% of the
10net revenue realized for the preceding month from the 6.25%
11general rate other than aviation fuel sold on or after
12December 1, 2019. This exception for aviation fuel only
13applies for so long as the revenue use requirements of 49
14U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
15    Beginning August 1, 2000, each month the Department shall
16pay into the County and Mass Transit District Fund 20% of the
17net revenue realized for the preceding month from the 1.25%
18rate on the selling price of motor fuel and gasohol. Beginning
19September 1, 2010, each month the Department shall pay into
20the County and Mass Transit District Fund 20% of the net
21revenue realized for the preceding month from the 1.25% rate
22on the selling price of sales tax holiday items.
23    Beginning January 1, 1990, each month the Department shall
24pay into the Local Government Tax Fund 16% of the net revenue
25realized for the preceding month from the 6.25% general rate
26on the selling price of tangible personal property other than

 

 

SB4164- 211 -LRB102 26254 HLH 36122 b

1aviation fuel sold on or after December 1, 2019. This
2exception for aviation fuel only applies for so long as the
3revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
447133 are binding 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. Beginning September
211, 2010, each month the Department shall pay into the Local
22Government Tax Fund 80% of the net revenue realized for the
23preceding month from the 1.25% rate on the selling price of
24sales tax holiday items.
25    Beginning October 1, 2009, each month the Department shall
26pay into the Capital Projects Fund an amount that is equal to

 

 

SB4164- 212 -LRB102 26254 HLH 36122 b

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

 

 

SB4164- 213 -LRB102 26254 HLH 36122 b

1payment by the fund and the average monthly revenues deposited
2into the fund, excluding payments made pursuant to this
3paragraph.
4    Beginning July 1, 2015, of the remainder of the moneys
5received by the Department under the Use Tax Act, the Service
6Use Tax Act, the Service Occupation Tax Act, and this Act, each
7month the Department shall deposit $500,000 into the State
8Crime Laboratory Fund.
9    Of the remainder of the moneys received by the Department
10pursuant to this Act, (a) 1.75% thereof shall be paid into the
11Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
12and after July 1, 1989, 3.8% thereof shall be paid into the
13Build Illinois Fund; provided, however, that if in any fiscal
14year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
15may be, of the moneys received by the Department and required
16to be paid into the Build Illinois Fund pursuant to this Act,
17Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
18Act, and Section 9 of the Service Occupation Tax Act, such Acts
19being hereinafter called the "Tax Acts" and such aggregate of
202.2% or 3.8%, as the case may be, of moneys being hereinafter
21called the "Tax Act Amount", and (2) the amount transferred to
22the Build Illinois Fund from the State and Local Sales Tax
23Reform Fund shall be less than the Annual Specified Amount (as
24hereinafter defined), an amount equal to the difference shall
25be immediately paid into the Build Illinois Fund from other
26moneys received by the Department pursuant to the Tax Acts;

 

 

SB4164- 214 -LRB102 26254 HLH 36122 b

1the "Annual Specified Amount" means the amounts specified
2below for fiscal years 1986 through 1993:
3Fiscal YearAnnual Specified Amount
41986$54,800,000
51987$76,650,000
61988$80,480,000
71989$88,510,000
81990$115,330,000
91991$145,470,000
101992$182,730,000
111993$206,520,000;
12and means the Certified Annual Debt Service Requirement (as
13defined in Section 13 of the Build Illinois Bond Act) or the
14Tax Act Amount, whichever is greater, for fiscal year 1994 and
15each fiscal year thereafter; and further provided, that if on
16the last business day of any month the sum of (1) the Tax Act
17Amount required to be deposited into the Build Illinois Bond
18Account in the Build Illinois Fund during such month and (2)
19the amount transferred to the Build Illinois Fund from the
20State and Local Sales Tax Reform Fund shall have been less than
211/12 of the Annual Specified Amount, an amount equal to the
22difference shall be immediately paid into the Build Illinois
23Fund from other moneys received by the Department pursuant to
24the Tax Acts; and, further provided, that in no event shall the
25payments required under the preceding proviso result in
26aggregate payments into the Build Illinois Fund pursuant to

 

 

SB4164- 215 -LRB102 26254 HLH 36122 b

1this clause (b) for any fiscal year in excess of the greater of
2(i) the Tax Act Amount or (ii) the Annual Specified Amount for
3such fiscal year. The amounts payable into the Build Illinois
4Fund under clause (b) of the first sentence in this paragraph
5shall be payable only until such time as the aggregate amount
6on deposit under each trust indenture securing Bonds issued
7and outstanding pursuant to the Build Illinois Bond Act is
8sufficient, taking into account any future investment income,
9to fully provide, in accordance with such indenture, for the
10defeasance of or the payment of the principal of, premium, if
11any, and interest on the Bonds secured by such indenture and on
12any Bonds expected to be issued thereafter and all fees and
13costs payable with respect thereto, all as certified by the
14Director of the Bureau of the Budget (now Governor's Office of
15Management and Budget). If on the last business day of any
16month in which Bonds are outstanding pursuant to the Build
17Illinois Bond Act, the aggregate of moneys deposited in the
18Build Illinois Bond Account in the Build Illinois Fund in such
19month shall be less than the amount required to be transferred
20in such month from the Build Illinois Bond Account to the Build
21Illinois Bond Retirement and Interest Fund pursuant to Section
2213 of the Build Illinois Bond Act, an amount equal to such
23deficiency shall be immediately paid from other moneys
24received by the Department pursuant to the Tax Acts to the
25Build Illinois Fund; provided, however, that any amounts paid
26to the Build Illinois Fund in any fiscal year pursuant to this

 

 

SB4164- 216 -LRB102 26254 HLH 36122 b

1sentence shall be deemed to constitute payments pursuant to
2clause (b) of the first sentence of this paragraph and shall
3reduce the amount otherwise payable for such fiscal year
4pursuant to that clause (b). The moneys received by the
5Department pursuant to this Act and required to be deposited
6into the Build Illinois Fund are subject to the pledge, claim
7and charge set forth in Section 12 of the Build Illinois Bond
8Act.
9    Subject to payment of amounts into the Build Illinois Fund
10as provided in the preceding paragraph or in any amendment
11thereto hereafter enacted, the following specified monthly
12installment of the amount requested in the certificate of the
13Chairman of the Metropolitan Pier and Exposition Authority
14provided under Section 8.25f of the State Finance Act, but not
15in excess of sums designated as "Total Deposit", shall be
16deposited in the aggregate from collections under Section 9 of
17the Use Tax Act, Section 9 of the Service Use Tax Act, Section
189 of the Service Occupation Tax Act, and Section 3 of the
19Retailers' Occupation Tax Act into the McCormick Place
20Expansion Project Fund in the specified fiscal years.
21Fiscal YearTotal Deposit
221993         $0
231994 53,000,000
241995 58,000,000
251996 61,000,000
261997 64,000,000

 

 

SB4164- 217 -LRB102 26254 HLH 36122 b

11998 68,000,000
21999 71,000,000
32000 75,000,000
42001 80,000,000
52002 93,000,000
62003 99,000,000
72004103,000,000
82005108,000,000
92006113,000,000
102007119,000,000
112008126,000,000
122009132,000,000
132010139,000,000
142011146,000,000
152012153,000,000
162013161,000,000
172014170,000,000
182015179,000,000
192016189,000,000
202017199,000,000
212018210,000,000
222019221,000,000
232020233,000,000
242021300,000,000
252022300,000,000
262023300,000,000

 

 

SB4164- 218 -LRB102 26254 HLH 36122 b

12024 300,000,000
22025 300,000,000
32026 300,000,000
42027 375,000,000
52028 375,000,000
62029 375,000,000
72030 375,000,000
82031 375,000,000
92032 375,000,000
102033375,000,000
112034375,000,000
122035375,000,000
132036450,000,000
14and
15each fiscal year
16thereafter that bonds
17are outstanding under
18Section 13.2 of the
19Metropolitan Pier and
20Exposition Authority Act,
21but not after fiscal year 2060.
22    Beginning July 20, 1993 and in each month of each fiscal
23year thereafter, one-eighth of the amount requested in the
24certificate of the Chairman of the Metropolitan Pier and
25Exposition Authority for that fiscal year, less the amount
26deposited into the McCormick Place Expansion Project Fund by

 

 

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1the State Treasurer in the respective month under subsection
2(g) of Section 13 of the Metropolitan Pier and Exposition
3Authority Act, plus cumulative deficiencies in the deposits
4required under this Section for previous months and years,
5shall be deposited into the McCormick Place Expansion Project
6Fund, until the full amount requested for the fiscal year, but
7not in excess of the amount specified above as "Total
8Deposit", has been deposited.
9    Subject to payment of amounts into the Capital Projects
10Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
11and the McCormick Place Expansion Project Fund pursuant to the
12preceding paragraphs or in any amendments thereto hereafter
13enacted, for aviation fuel sold on or after December 1, 2019,
14the Department shall each month deposit into the Aviation Fuel
15Sales Tax Refund Fund an amount estimated by the Department to
16be required for refunds of the 80% portion of the tax on
17aviation fuel under this Act. The Department shall only
18deposit moneys into the Aviation Fuel Sales Tax Refund Fund
19under this paragraph for so long as the revenue use
20requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
21binding on the State.
22    Subject to payment of amounts into the Build Illinois Fund
23and the McCormick Place Expansion Project Fund pursuant to the
24preceding paragraphs or in any amendments thereto hereafter
25enacted, beginning July 1, 1993 and ending on September 30,
262013, the Department shall each month pay into the Illinois

 

 

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1Tax Increment Fund 0.27% of 80% of the net revenue realized for
2the preceding month from the 6.25% general rate on the selling
3price of tangible personal property.
4    Subject to payment of amounts into the Build Illinois Fund
5and the McCormick Place Expansion Project Fund pursuant to the
6preceding paragraphs or in any amendments thereto hereafter
7enacted, beginning with the receipt of the first report of
8taxes paid by an eligible business and continuing for a
925-year period, the Department shall each month pay into the
10Energy Infrastructure Fund 80% of the net revenue realized
11from the 6.25% general rate on the selling price of
12Illinois-mined coal that was sold to an eligible business. For
13purposes of this paragraph, the term "eligible business" means
14a new electric generating facility certified pursuant to
15Section 605-332 of the Department of Commerce and Economic
16Opportunity Law of the Civil Administrative Code of Illinois.
17    Subject to payment of amounts into the Build Illinois
18Fund, the McCormick Place Expansion Project Fund, the Illinois
19Tax Increment Fund, and the Energy Infrastructure Fund
20pursuant to the preceding paragraphs or in any amendments to
21this Section hereafter enacted, beginning on the first day of
22the first calendar month to occur on or after August 26, 2014
23(the effective date of Public Act 98-1098), each month, from
24the collections made under Section 9 of the Use Tax Act,
25Section 9 of the Service Use Tax Act, Section 9 of the Service
26Occupation Tax Act, and Section 3 of the Retailers' Occupation

 

 

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1Tax Act, the Department shall pay into the Tax Compliance and
2Administration Fund, to be used, subject to appropriation, to
3fund additional auditors and compliance personnel at the
4Department of Revenue, an amount equal to 1/12 of 5% of 80% of
5the cash receipts collected during the preceding fiscal year
6by the Audit Bureau of the Department under the Use Tax Act,
7the Service Use Tax Act, the Service Occupation Tax Act, the
8Retailers' Occupation Tax Act, and associated local occupation
9and use taxes administered by the Department.
10    Subject to payments of amounts into the Build Illinois
11Fund, the McCormick Place Expansion Project Fund, the Illinois
12Tax Increment Fund, the Energy Infrastructure Fund, and the
13Tax Compliance and Administration Fund as provided in this
14Section, beginning on July 1, 2018 the Department shall pay
15each month into the Downstate Public Transportation Fund the
16moneys required to be so paid under Section 2-3 of the
17Downstate Public Transportation Act.
18    Subject to successful execution and delivery of a
19public-private agreement between the public agency and private
20entity and completion of the civic build, beginning on July 1,
212023, of the remainder of the moneys received by the
22Department under the Use Tax Act, the Service Use Tax Act, the
23Service Occupation Tax Act, and this Act, the Department shall
24deposit the following specified deposits in the aggregate from
25collections under the Use Tax Act, the Service Use Tax Act, the
26Service Occupation Tax Act, and the Retailers' Occupation Tax

 

 

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1Act, as required under Section 8.25g of the State Finance Act
2for distribution consistent with the Public-Private
3Partnership for Civic and Transit Infrastructure Project Act.
4The moneys received by the Department pursuant to this Act and
5required to be deposited into the Civic and Transit
6Infrastructure Fund are subject to the pledge, claim and
7charge set forth in Section 25-55 of the Public-Private
8Partnership for Civic and Transit Infrastructure Project Act.
9As used in this paragraph, "civic build", "private entity",
10"public-private agreement", and "public agency" have the
11meanings provided in Section 25-10 of the Public-Private
12Partnership for Civic and Transit Infrastructure Project Act.
13        Fiscal Year.............................Total Deposit
14        2024.....................................$200,000,000
15        2025....................................$206,000,000
16        2026....................................$212,200,000
17        2027....................................$218,500,000
18        2028....................................$225,100,000
19        2029....................................$288,700,000
20        2030....................................$298,900,000
21        2031....................................$309,300,000
22        2032....................................$320,100,000
23        2033....................................$331,200,000
24        2034....................................$341,200,000
25        2035....................................$351,400,000
26        2036....................................$361,900,000

 

 

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

 

 

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1until July 1, 2024, subject to the payment of amounts into the
2County and Mass Transit District Fund, the Local Government
3Tax Fund, the Build Illinois Fund, the McCormick Place
4Expansion Project Fund, the Illinois Tax Increment Fund, the
5Energy 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 County and Mass Transit District Fund, the Local
12Government Tax Fund, the Build Illinois Fund, the McCormick
13Place Expansion Project Fund, the Illinois Tax Increment Fund,
14the Energy 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 64% of the net revenue realized from
18the taxes imposed on motor fuel and gasohol. Beginning on July
191, 2025, subject to the payment of amounts into the County and
20Mass Transit 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 80% of the net revenue realized from the taxes

 

 

SB4164- 225 -LRB102 26254 HLH 36122 b

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

 

 

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

 

 

SB4164- 227 -LRB102 26254 HLH 36122 b

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

 

 

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

 

 

SB4164- 229 -LRB102 26254 HLH 36122 b

1that a substantial number of concessionaires or other sellers
2who are not residents of Illinois will be engaging in the
3business of selling tangible personal property at retail at
4the exhibition or event, or other evidence of a significant
5risk of loss of revenue to the State. The Department shall
6notify concessionaires and other sellers affected by the
7imposition of this requirement. In the absence of notification
8by the Department, the concessionaires and other sellers shall
9file their returns as otherwise required in this Section.
10(Source: P.A. 101-10, Article 15, Section 15-25, eff. 6-5-19;
11101-10, Article 25, Section 25-120, eff. 6-5-19; 101-27, eff.
126-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
13101-636, eff. 6-10-20; 102-634, eff. 8-27-21; revised
1412-7-21.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.