103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4040

 

Introduced 4/20/2023, by Rep. Martin J. Moylan - Nabeela Syed - Jonathan Carroll, Mary Gill, Joyce Mason, et al.

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Creates the Megaproject Sports and Entertainment Facility Admission Tax Act. Imposes a tax of $3 for each individual admitted to a sports and entertainment facility located on megaproject property. Contains provisions concerning the distribution of the proceeds of the tax. Amends the Property Tax Code. Provides that certain property may be certified by the Department of Revenue as containing a megaproject. Provides that a "megaproject" is a project with respect to which a company makes a specified investment during a specified investment period. Provides that the Department of Revenue may issue a megaproject certificate only for a megaproject in the Village of Arlington Heights. Provides that the megaproject property is eligible for an assessment freeze. Provides that megaproject property may be granted an abatement. Provides that a company that operates a megaproject shall enter into an agreement with the municipality in which the project is located to make certain special payments. Creates the Arlington Megaproject Oversight Board. Provides that the incentive agreement must be approved by resolution of the Arlington Megaproject Oversight Board. Amends the State Finance Act making conforming changes. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that qualified tangible personal property used in the construction or operation of a megaproject is exempt from the taxes imposed under those Acts. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, the Hotel Operators' Occupation Tax Act, and the Liquor Control Act of 1934. Provides that certain tax proceeds from megaproject property shall be deposited into the Arlington Megaproject Infrastructure Fund. Makes other changes. Effective June 1, 2023.


LRB103 31628 HLH 60767 b

 

 

A BILL FOR

 

HB4040LRB103 31628 HLH 60767 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 1. Short title. This Act may be cited as the
5Megaproject Sports and Entertainment Facility Admission Tax
6Act.
 
7    Section 5. Definitions. As used in this Act:
8    "Department" means the Department of Revenue.
9    "Megaproject property" means property covered by a
10megaproject certificate issued pursuant to Division 22 of
11Article 10 of the Property Tax Code.
12    "Owner" means the owner of a sports and entertainment
13facility located on megaproject property.
14    "Person" means any individual, partnership, corporation,
15association, governmental subdivision, or public or private
16organization.
17    "Sports and entertainment facility" means a stadium,
18arena, or other similar structure for the holding of athletic
19contests and other events and gatherings, including, but not
20limited to, the following: baseball events, football events,
21and automobile racing; musical, dramatic, and other artistic,
22cultural, or social events; public meetings; and other public
23events.
 

 

 

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1    Section 10. Tax imposed. Beginning on the first day of the
2first month to occur not less than 60 days after the Department
3issues a megaproject certificate pursuant to Division 22 of
4Article 10 of the Property Tax Code and continuing through the
5last day of the calendar month in which the incentive period
6expires, as defined in Section 10-910 of the Property Tax
7Code, a tax is imposed upon admission to a sports and
8entertainment facility located on the megaproject property.
9The rate of the tax under this Act is $3 for each individual
10admitted to the sports and entertainment facility. The owner
11shall collect and remit the tax imposed under this Act. The tax
12under this Act shall be paid on a per-admission basis, except
13that an individual who exits a sports and entertainment
14facility and reenters that sports and entertainment facility
15on the same day shall be subject only to the initial admission
16tax. The Department may issue tax-free passes to agents of the
17owner, employees of the owner, and other persons who provide
18goods and services at the sports and entertainment facility
19pursuant to a contract or agreement with the owner. Those
20tax-free passes shall allow those individuals to access the
21sports and entertainment facility without incurring the tax
22imposed under this Act.
 
23    Section 15. Returns.
24    (a) On or before the 25th day of each calendar month, each

 

 

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1person who is required to collect and remit the tax under this
2Act shall file a return with the Department stating:
3        (1) the name of the person required to collect and
4    remit the tax;
5        (2) the address of the person's principal place of
6    business;
7        (3) the address of the sports and entertainment
8    facility;
9        (4) the number of taxable admissions to the sports and
10    entertainment facility during the period covered by the
11    return;
12        (5) the total amount of tax due under this Act for the
13    period covered by the return; and
14        (6) such other information as the Department may
15    require.
16    (b) The person filing the return under this Act shall, at
17the time of filing the return, pay to the Department the amount
18of tax imposed by this Act.
 
19    Section 17. Sports Facilities Bond Repayment Trust Fund;
20distribution of proceeds.
21    (a) Within 90 days after the effective date of this Act,
22the Department shall certify the reimbursement amount to the
23State Comptroller and the State Treasurer. For the purposes of
24this Section, the reimbursement amount is an amount equal to
25the sum of (i) the total amount paid into the Illinois Sports

 

 

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1Facilities Fund under Section 13.1 of the State Revenue
2Sharing Act and Section 6 of the Hotel Operators' Occupation
3Tax Act on or after June 1, 2001 (the effective date of Public
4Act 91-935) and before the effective date of this Act as a
5reallocation of moneys due to the City of Chicago from the
6Local Government Distributive Fund and (ii) the amount
7projected by the Department to be paid into the Illinois
8Sports Facilities Fund under Section 13.1 of the State Revenue
9Sharing Act and Section 6 of the Hotel Operators' Occupation
10Tax Act on or after the effective date of this Act as a
11reallocation of moneys due to the City of Chicago from the
12Local Government Distributive Fund.
13    (b) The Sports Facilities Bond Repayment Trust Fund is
14hereby created as a trust fund to be held outside of the State
15Treasury with the State Treasurer, ex officio, as custodian.
16Moneys in the Trust Fund shall be used solely as provided in
17this Section. All deposits into the Trust Fund shall be held in
18the Trust Fund by the State Treasurer separate and apart from
19all public moneys or funds of this State. Any interest earned
20on moneys in the Sports Facilities Bond Repayment Trust Fund
21shall be deposited into the Sports Facilities Bond Repayment
22Trust Fund. Moneys in the Sports Facilities Bond Repayment
23Trust Fund shall be paid to the City of Chicago upon order of
24the Comptroller and in accordance with the directions
25contained in the certification under subsection (a).
26    (c) The proceeds of the tax imposed under this Act shall be

 

 

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1paid into the Sports Facilities Bond Repayment Trust Fund
2until the total reimbursement amount has been paid into the
3Sports Facilities Bond Repayment Trust Fund. Once the total
4reimbursement amount has been deposited into the Sports
5Facilities Bond Repayment Trust Fund, the proceeds of the tax
6under this Act shall be paid into the Common School Fund.
 
7    Section 20. Incorporation of the Retailers' Occupation Tax
8Act and the Uniform Penalty and Interest Act. The Department
9shall administer and collect the admission tax imposed by this
10Act, to the extent practicable, in a manner consistent with
11the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
125i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the Retailers' Occupation
13Tax Act and Section 3-7 of the Uniform Penalty and Interest
14Act.
 
15    Section 25. Rulemaking. The Department shall adopt rules
16necessary for the implementation of this Act.
 
17    Section 900. The State Finance Act is amended by adding
18Sections 5.990 and 6z-139 as follows:
 
19    (30 ILCS 105/5.990 new)
20    Sec. 5.990. The Arlington Megaproject Infrastructure Fund.
 
21    (30 ILCS 105/6z-139 new)

 

 

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1    Sec. 6z-139. The Arlington Megaproject Infrastructure
2Fund.
3    (a) The Arlington Megaproject Infrastructure Fund is
4created as a special fund in the State treasury. The entities
5receiving disbursements under subsection (b) of this Section
6may use funds received from the Arlington Megaproject
7Infrastructure Fund only for capital projects and
8infrastructure improvements. All interest earned on moneys in
9the Fund shall be deposited into the Fund. The Fund shall not
10be subject to administrative charges or chargebacks,
11including, but not limited to, those authorized under Section
128h.
13    (b) On or before the last day of each month, the State
14Treasurer and the State Comptroller shall distribute the
15available balance in the Arlington Megaproject Infrastructure
16Fund as follows:
17        (1) 35% to the Village of Arlington Heights;
18        (2) 10% to Cook County;
19        (6) 10% to the Village of Palatine;
20        (8) 10% to the City of Rolling Meadows; and
21        (3) 7% to the Village of Buffalo Grove;
22        (4) 7% to the Village of Elk Grove Village;
23        (5) 7% to the Village of Mount Prospect;
24        (7) 7% to the City of Prospect Heights;
25        (9) 7% to the Village of Wheeling.
 

 

 

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1    Section 905. The Use Tax Act is amended by changing
2Sections 3-5 and 9 as follows:
 
3    (35 ILCS 105/3-5)
4    Sec. 3-5. Exemptions. Use of the following tangible
5personal property is exempt from the tax imposed by this Act:
6    (1) Personal property purchased from a corporation,
7society, association, foundation, institution, or
8organization, other than a limited liability company, that is
9organized and operated as a not-for-profit service enterprise
10for the benefit of persons 65 years of age or older if the
11personal property was not purchased by the enterprise for the
12purpose of resale by the enterprise.
13    (2) Personal property purchased by a not-for-profit
14Illinois county fair association for use in conducting,
15operating, or promoting the county fair.
16    (3) Personal property purchased by a not-for-profit arts
17or cultural organization that establishes, by proof required
18by the Department by rule, that it has received an exemption
19under Section 501(c)(3) of the Internal Revenue Code and that
20is organized and operated primarily for the presentation or
21support of arts or cultural programming, activities, or
22services. These organizations include, but are not limited to,
23music and dramatic arts organizations such as symphony
24orchestras and theatrical groups, arts and cultural service
25organizations, local arts councils, visual arts organizations,

 

 

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1and media arts organizations. On and after July 1, 2001 (the
2effective date of Public Act 92-35), however, an entity
3otherwise eligible for this exemption shall not make tax-free
4purchases unless it has an active identification number issued
5by the Department.
6    (4) Personal property purchased by a governmental body, by
7a corporation, society, association, foundation, or
8institution organized and operated exclusively for charitable,
9religious, or educational purposes, or by a not-for-profit
10corporation, society, association, foundation, institution, or
11organization that has no compensated officers or employees and
12that is organized and operated primarily for the recreation of
13persons 55 years of age or older. A limited liability company
14may qualify for the exemption under this paragraph only if the
15limited liability company is organized and operated
16exclusively for educational purposes. On and after July 1,
171987, however, no entity otherwise eligible for this exemption
18shall make tax-free purchases unless it has an active
19exemption identification number issued by the Department.
20    (5) Until July 1, 2003, a passenger car that is a
21replacement vehicle to the extent that the purchase price of
22the car is subject to the Replacement Vehicle Tax.
23    (6) Until July 1, 2003 and beginning again on September 1,
242004 through August 30, 2014, graphic arts machinery and
25equipment, including repair and replacement parts, both new
26and used, and including that manufactured on special order,

 

 

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

 

 

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

 

 

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1crop data for the purpose of formulating animal diets and
2agricultural chemicals. This item (11) is exempt from the
3provisions of Section 3-90.
4    (12) Until June 30, 2013, fuel and petroleum products sold
5to or used by an air common carrier, certified by the carrier
6to be used for consumption, shipment, or storage in the
7conduct of its business as an air common carrier, for a flight
8destined for or returning from a location or locations outside
9the United States without regard to previous or subsequent
10domestic stopovers.
11    Beginning July 1, 2013, fuel and petroleum products sold
12to or used by an air carrier, certified by the carrier to be
13used for consumption, shipment, or storage in the conduct of
14its business as an air common carrier, for a flight that (i) is
15engaged in foreign trade or is engaged in trade between the
16United States and any of its possessions and (ii) transports
17at least one individual or package for hire from the city of
18origination to the city of final destination on the same
19aircraft, without regard to a change in the flight number of
20that aircraft.
21    (13) Proceeds of mandatory service charges separately
22stated on customers' bills for the purchase and consumption of
23food and beverages purchased at retail from a retailer, to the
24extent that the proceeds of the service charge are in fact
25turned over as tips or as a substitute for tips to the
26employees who participate directly in preparing, serving,

 

 

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

 

 

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1during the period beginning July 1, 2003 and ending on August
216, 2013 (the effective date of Public Act 98-456).
3    (17) Until July 1, 2003, distillation machinery and
4equipment, sold as a unit or kit, assembled or installed by the
5retailer, certified by the user to be used only for the
6production of ethyl alcohol that will be used for consumption
7as motor fuel or as a component of motor fuel for the personal
8use of the user, and not subject to sale or resale.
9    (18) Manufacturing and assembling machinery and equipment
10used primarily in the process of manufacturing or assembling
11tangible personal property for wholesale or retail sale or
12lease, whether that sale or lease is made directly by the
13manufacturer or by some other person, whether the materials
14used in the process are owned by the manufacturer or some other
15person, or whether that sale or lease is made apart from or as
16an incident to the seller's engaging in the service occupation
17of producing machines, tools, dies, jigs, patterns, gauges, or
18other similar items of no commercial value on special order
19for a particular purchaser. The exemption provided by this
20paragraph (18) includes production related tangible personal
21property, as defined in Section 3-50, purchased on or after
22July 1, 2019. The exemption provided by this paragraph (18)
23does not include machinery and equipment used in (i) the
24generation of electricity for wholesale or retail sale; (ii)
25the generation or treatment of natural or artificial gas for
26wholesale or retail sale that is delivered to customers

 

 

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1through pipes, pipelines, or mains; or (iii) the treatment of
2water for wholesale or retail sale that is delivered to
3customers through pipes, pipelines, or mains. The provisions
4of Public Act 98-583 are declaratory of existing law as to the
5meaning and scope of this exemption. Beginning on July 1,
62017, the exemption provided by this paragraph (18) includes,
7but is not limited to, graphic arts machinery and equipment,
8as defined in paragraph (6) of this Section.
9    (19) Personal property delivered to a purchaser or
10purchaser's donee inside Illinois when the purchase order for
11that personal property was received by a florist located
12outside Illinois who has a florist located inside Illinois
13deliver the personal property.
14    (20) Semen used for artificial insemination of livestock
15for direct agricultural production.
16    (21) Horses, or interests in horses, registered with and
17meeting the requirements of any of the Arabian Horse Club
18Registry of America, Appaloosa Horse Club, American Quarter
19Horse Association, United States Trotting Association, or
20Jockey Club, as appropriate, used for purposes of breeding or
21racing for prizes. This item (21) is exempt from the
22provisions of Section 3-90, and the exemption provided for
23under this item (21) applies for all periods beginning May 30,
241995, but no claim for credit or refund is allowed on or after
25January 1, 2008 for such taxes paid during the period
26beginning May 30, 2000 and ending on January 1, 2008.

 

 

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

 

 

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

 

 

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1number by the Department that assists victims of the disaster
2who reside within the declared disaster area.
3    (25) Beginning with taxable years ending on or after
4December 31, 1995 and ending with taxable years ending on or
5before December 31, 2004, personal property that is used in
6the performance of infrastructure repairs in this State,
7including but not limited to municipal roads and streets,
8access roads, bridges, sidewalks, waste disposal systems,
9water and sewer line extensions, water distribution and
10purification facilities, storm water drainage and retention
11facilities, and sewage treatment facilities, resulting from a
12State or federally declared disaster in Illinois or bordering
13Illinois when such repairs are initiated on facilities located
14in the declared disaster area within 6 months after the
15disaster.
16    (26) Beginning July 1, 1999, game or game birds purchased
17at a "game breeding and hunting preserve area" as that term is
18used in the Wildlife Code. This paragraph is exempt from the
19provisions of Section 3-90.
20    (27) A motor vehicle, as that term is defined in Section
211-146 of the Illinois Vehicle Code, that is donated to a
22corporation, limited liability company, society, association,
23foundation, or institution that is determined by the
24Department to be organized and operated exclusively for
25educational purposes. For purposes of this exemption, "a
26corporation, limited liability company, society, association,

 

 

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1foundation, or institution organized and operated exclusively
2for educational purposes" means all tax-supported public
3schools, private schools that offer systematic instruction in
4useful branches of learning by methods common to public
5schools and that compare favorably in their scope and
6intensity with the course of study presented in tax-supported
7schools, and vocational or technical schools or institutes
8organized and operated exclusively to provide a course of
9study of not less than 6 weeks duration and designed to prepare
10individuals to follow a trade or to pursue a manual,
11technical, mechanical, industrial, business, or commercial
12occupation.
13    (28) Beginning January 1, 2000, personal property,
14including food, purchased through fundraising events for the
15benefit of a public or private elementary or secondary school,
16a group of those schools, or one or more school districts if
17the events are sponsored by an entity recognized by the school
18district that consists primarily of volunteers and includes
19parents and teachers of the school children. This paragraph
20does not apply to fundraising events (i) for the benefit of
21private home instruction or (ii) for which the fundraising
22entity purchases the personal property sold at the events from
23another individual or entity that sold the property for the
24purpose of resale by the fundraising entity and that profits
25from the sale to the fundraising entity. This paragraph is
26exempt from the provisions of Section 3-90.

 

 

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1    (29) Beginning January 1, 2000 and through December 31,
22001, new or used automatic vending machines that prepare and
3serve hot food and beverages, including coffee, soup, and
4other items, and replacement parts for these machines.
5Beginning January 1, 2002 and through June 30, 2003, machines
6and parts for machines used in commercial, coin-operated
7amusement and vending business if a use or occupation tax is
8paid on the gross receipts derived from the use of the
9commercial, coin-operated amusement and vending machines. This
10paragraph is exempt from the provisions of Section 3-90.
11    (30) Beginning January 1, 2001 and through June 30, 2016,
12food for human consumption that is to be consumed off the
13premises where it is sold (other than alcoholic beverages,
14soft drinks, and food that has been prepared for immediate
15consumption) and prescription and nonprescription medicines,
16drugs, medical appliances, and insulin, urine testing
17materials, syringes, and needles used by diabetics, for human
18use, when purchased for use by a person receiving medical
19assistance under Article V of the Illinois Public Aid Code who
20resides in a licensed long-term care facility, as defined in
21the Nursing Home Care Act, or in a licensed facility as defined
22in the ID/DD Community Care Act, the MC/DD Act, or the
23Specialized Mental Health Rehabilitation Act of 2013.
24    (31) Beginning on August 2, 2001 (the effective date of
25Public Act 92-227), computers and communications equipment
26utilized for any hospital purpose and equipment used in the

 

 

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

 

 

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1subject to the tax imposed by this Act, to a governmental body
2that has been issued an active sales tax exemption
3identification number by the Department under Section 1g of
4the Retailers' Occupation Tax Act. If the property is leased
5in a manner that does not qualify for this exemption or used in
6any other nonexempt manner, the lessor shall be liable for the
7tax imposed under this Act or the Service Use Tax Act, as the
8case may be, based on the fair market value of the property at
9the time the nonqualifying use occurs. No lessor shall collect
10or attempt to collect an amount (however designated) that
11purports to reimburse that lessor for the tax imposed by this
12Act or the Service Use Tax Act, as the case may be, if the tax
13has not been paid by the lessor. If a lessor improperly
14collects any such amount from the lessee, the lessee shall
15have a legal right to claim a refund of that amount from the
16lessor. If, however, that amount is not refunded to the lessee
17for any reason, the lessor is liable to pay that amount to the
18Department. This paragraph is exempt from the provisions of
19Section 3-90.
20    (33) On and after July 1, 2003 and through June 30, 2004,
21the use in this State of motor vehicles of the second division
22with a gross vehicle weight in excess of 8,000 pounds and that
23are subject to the commercial distribution fee imposed under
24Section 3-815.1 of the Illinois Vehicle Code. Beginning on
25July 1, 2004 and through June 30, 2005, the use in this State
26of motor vehicles of the second division: (i) with a gross

 

 

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1vehicle weight rating in excess of 8,000 pounds; (ii) that are
2subject to the commercial distribution fee imposed under
3Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
4are primarily used for commercial purposes. Through June 30,
52005, this exemption applies to repair and replacement parts
6added after the initial purchase of such a motor vehicle if
7that motor vehicle is used in a manner that would qualify for
8the rolling stock exemption otherwise provided for in this
9Act. For purposes of this paragraph, the term "used for
10commercial purposes" means the transportation of persons or
11property in furtherance of any commercial or industrial
12enterprise, whether for-hire or not.
13    (34) Beginning January 1, 2008, tangible personal property
14used in the construction or maintenance of a community water
15supply, as defined under Section 3.145 of the Environmental
16Protection Act, that is operated by a not-for-profit
17corporation that holds a valid water supply permit issued
18under Title IV of the Environmental Protection Act. This
19paragraph is exempt from the provisions of Section 3-90.
20    (35) Beginning January 1, 2010 and continuing through
21December 31, 2024, materials, parts, equipment, components,
22and furnishings incorporated into or upon an aircraft as part
23of the modification, refurbishment, completion, replacement,
24repair, or maintenance of the aircraft. This exemption
25includes consumable supplies used in the modification,
26refurbishment, completion, replacement, repair, and

 

 

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1maintenance of aircraft, but excludes any materials, parts,
2equipment, components, and consumable supplies used in the
3modification, replacement, repair, and maintenance of aircraft
4engines or power plants, whether such engines or power plants
5are installed or uninstalled upon any such aircraft.
6"Consumable supplies" include, but are not limited to,
7adhesive, tape, sandpaper, general purpose lubricants,
8cleaning solution, latex gloves, and protective films. This
9exemption applies only to the use of qualifying tangible
10personal property by persons who modify, refurbish, complete,
11repair, replace, or maintain aircraft and who (i) hold an Air
12Agency Certificate and are empowered to operate an approved
13repair station by the Federal Aviation Administration, (ii)
14have a Class IV Rating, and (iii) conduct operations in
15accordance with Part 145 of the Federal Aviation Regulations.
16The exemption does not include aircraft operated by a
17commercial air carrier providing scheduled passenger air
18service pursuant to authority issued under Part 121 or Part
19129 of the Federal Aviation Regulations. The changes made to
20this paragraph (35) by Public Act 98-534 are declarative of
21existing law. It is the intent of the General Assembly that the
22exemption under this paragraph (35) applies continuously from
23January 1, 2010 through December 31, 2024; however, no claim
24for credit or refund is allowed for taxes paid as a result of
25the disallowance of this exemption on or after January 1, 2015
26and prior to February 5, 2020 (the effective date of Public Act

 

 

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1101-629) this amendatory Act of the 101st General Assembly.
2    (36) Tangible personal property purchased by a
3public-facilities corporation, as described in Section
411-65-10 of the Illinois Municipal Code, for purposes of
5constructing or furnishing a municipal convention hall, but
6only if the legal title to the municipal convention hall is
7transferred to the municipality without any further
8consideration by or on behalf of the municipality at the time
9of the completion of the municipal convention hall or upon the
10retirement or redemption of any bonds or other debt
11instruments issued by the public-facilities corporation in
12connection with the development of the municipal convention
13hall. This exemption includes existing public-facilities
14corporations as provided in Section 11-65-25 of the Illinois
15Municipal Code. This paragraph is exempt from the provisions
16of Section 3-90.
17    (37) Beginning January 1, 2017 and through December 31,
182026, menstrual pads, tampons, and menstrual cups.
19    (38) Merchandise that is subject to the Rental Purchase
20Agreement Occupation and Use Tax. The purchaser must certify
21that the item is purchased to be rented subject to a rental
22purchase agreement, as defined in the Rental Purchase
23Agreement Act, and provide proof of registration under the
24Rental Purchase Agreement Occupation and Use Tax Act. This
25paragraph is exempt from the provisions of Section 3-90.
26    (39) Tangible personal property purchased by a purchaser

 

 

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1who is exempt from the tax imposed by this Act by operation of
2federal law. This paragraph is exempt from the provisions of
3Section 3-90.
4    (40) Qualified tangible personal property used in the
5construction or operation of a data center that has been
6granted a certificate of exemption by the Department of
7Commerce and Economic Opportunity, whether that tangible
8personal property is purchased by the owner, operator, or
9tenant of the data center or by a contractor or subcontractor
10of the owner, operator, or tenant. Data centers that would
11have qualified for a certificate of exemption prior to January
121, 2020 had Public Act 101-31 been in effect may apply for and
13obtain an exemption for subsequent purchases of computer
14equipment or enabling software purchased or leased to upgrade,
15supplement, or replace computer equipment or enabling software
16purchased or leased in the original investment that would have
17qualified.
18    The Department of Commerce and Economic Opportunity shall
19grant a certificate of exemption under this item (40) to
20qualified data centers as defined by Section 605-1025 of the
21Department of Commerce and Economic Opportunity Law of the
22Civil Administrative Code of Illinois.
23    For the purposes of this item (40):
24        "Data center" means a building or a series of
25    buildings rehabilitated or constructed to house working
26    servers in one physical location or multiple sites within

 

 

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

 

 

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1    of eligibility issued by the Department of Commerce and
2    Economic Opportunity.
3    This item (40) is exempt from the provisions of Section
43-90.
5    (41) Beginning July 1, 2022, breast pumps, breast pump
6collection and storage supplies, and breast pump kits. This
7item (41) is exempt from the provisions of Section 3-90. As
8used in this item (41):
9        "Breast pump" means an electrically controlled or
10    manually controlled pump device designed or marketed to be
11    used to express milk from a human breast during lactation,
12    including the pump device and any battery, AC adapter, or
13    other power supply unit that is used to power the pump
14    device and is packaged and sold with the pump device at the
15    time of sale.
16        "Breast pump collection and storage supplies" means
17    items of tangible personal property designed or marketed
18    to be used in conjunction with a breast pump to collect
19    milk expressed from a human breast and to store collected
20    milk until it is ready for consumption.
21        "Breast pump collection and storage supplies"
22    includes, but is not limited to: breast shields and breast
23    shield connectors; breast pump tubes and tubing adapters;
24    breast pump valves and membranes; backflow protectors and
25    backflow protector adaptors; bottles and bottle caps
26    specific to the operation of the breast pump; and breast

 

 

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1    milk storage bags.
2        "Breast pump collection and storage supplies" does not
3    include: (1) bottles and bottle caps not specific to the
4    operation of the breast pump; (2) breast pump travel bags
5    and other similar carrying accessories, including ice
6    packs, labels, and other similar products; (3) breast pump
7    cleaning supplies; (4) nursing bras, bra pads, breast
8    shells, and other similar products; and (5) creams,
9    ointments, and other similar products that relieve
10    breastfeeding-related symptoms or conditions of the
11    breasts or nipples, unless sold as part of a breast pump
12    kit that is pre-packaged by the breast pump manufacturer
13    or distributor.
14        "Breast pump kit" means a kit that: (1) contains no
15    more than a breast pump, breast pump collection and
16    storage supplies, a rechargeable battery for operating the
17    breast pump, a breastmilk cooler, bottle stands, ice
18    packs, and a breast pump carrying case; and (2) is
19    pre-packaged as a breast pump kit by the breast pump
20    manufacturer or distributor.
21    (42) (41) Tangible personal property sold by or on behalf
22of the State Treasurer pursuant to the Revised Uniform
23Unclaimed Property Act. This item (42) (41) is exempt from the
24provisions of Section 3-90.
25    (43) Qualified tangible personal property used in the
26construction or operation of a megaproject for which a

 

 

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1certificate has been issued by the Department under Division
222 of Article 10 of the Property Tax Code, whether that
3tangible personal property is purchased by the owner,
4operator, or tenant of the megaproject or by a contractor or
5subcontractor of the owner, operator, or tenant.
6    As used in this item (43):
7    "Megaproject" has the meaning ascribed to that term in
8Section 10-910 of the Property Tax Code.
9    "Qualified tangible personal property" means: electrical
10systems and equipment; climate control and chilling equipment
11and systems; mechanical systems and equipment; monitoring and
12security systems; emergency generators; hardware; computers;
13servers; data storage devices; network connectivity equipment;
14racks; cabinets; telecommunications cabling infrastructure;
15raised floor systems; peripheral components or systems;
16software; mechanical, electrical, or plumbing systems; battery
17systems; cooling systems and towers; temperature control
18systems; other cabling; and other data center infrastructure
19equipment and systems necessary to operate qualified tangible
20personal property, including fixtures; and component parts of
21those items, including installation, maintenance, repair,
22refurbishment, and replacement of qualified tangible personal
23property to generate, transform, transmit, distribute, or
24manage electricity necessary to operate qualified tangible
25personal property; and all other tangible personal property
26that is essential to the operations of a megaproject. The term

 

 

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1"qualified tangible personal property" also includes building
2materials to be incorporated into the megaproject. To document
3the exemption allowed under this Section, the retailer,
4contractor or subcontractor or supplier must obtain from the
5purchaser a copy of the certificate issued by the Department
6of Revenue for the megaproject as described and defined in
7Division 22 of Article 10 of the Property Tax Code.
8    This item (43) is exempt from the provisions of Section
93-90.
10(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
11101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
126-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
13102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
14eff. 5-27-22; revised 8-1-22.)
 
15    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
16    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
17and trailers that are required to be registered with an agency
18of this State, each retailer required or authorized to collect
19the tax imposed by this Act shall pay to the Department the
20amount of such tax (except as otherwise provided) at the time
21when he is required to file his return for the period during
22which such tax was collected, less a discount of 2.1% prior to
23January 1, 1990, and 1.75% on and after January 1, 1990, or $5
24per calendar year, whichever is greater, which is allowed to
25reimburse the retailer for expenses incurred in collecting the

 

 

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1tax, keeping records, preparing and filing returns, remitting
2the tax and supplying data to the Department on request. When
3determining the discount allowed under this Section, retailers
4shall include the amount of tax that would have been due at the
56.25% rate but for the 1.25% rate imposed on sales tax holiday
6items under Public Act 102-700 this amendatory Act of the
7102nd General Assembly. The discount under this Section is not
8allowed for the 1.25% portion of taxes paid on aviation fuel
9that is subject to the revenue use requirements of 49 U.S.C.
1047107(b) and 49 U.S.C. 47133. When determining the discount
11allowed under this Section, retailers shall include the amount
12of tax that would have been due at the 1% rate but for the 0%
13rate imposed under Public Act 102-700 this amendatory Act of
14the 102nd General Assembly. In the case of retailers who
15report and pay the tax on a transaction by transaction basis,
16as provided in this Section, such discount shall be taken with
17each such tax remittance instead of when such retailer files
18his periodic return. The discount allowed under this Section
19is allowed only for returns that are filed in the manner
20required by this Act. The Department may disallow the discount
21for retailers whose certificate of registration is revoked at
22the time the return is filed, but only if the Department's
23decision to revoke the certificate of registration has become
24final. A retailer need not remit that part of any tax collected
25by him to the extent that he is required to remit and does
26remit the tax imposed by the Retailers' Occupation Tax Act,

 

 

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1with respect to the sale of the same property.
2    Where such tangible personal property is sold under a
3conditional sales contract, or under any other form of sale
4wherein the payment of the principal sum, or a part thereof, is
5extended beyond the close of the period for which the return is
6filed, the retailer, in collecting the tax (except as to motor
7vehicles, watercraft, aircraft, and trailers that are required
8to be registered with an agency of this State), may collect for
9each tax return period, only the tax applicable to that part of
10the selling price actually received during such tax return
11period.
12    Except as provided in this Section, on or before the
13twentieth day of each calendar month, such retailer shall file
14a return for the preceding calendar month. Such return shall
15be filed on forms prescribed by the Department and shall
16furnish such information as the Department may reasonably
17require. The return shall include the gross receipts on food
18for human consumption that is to be consumed off the premises
19where it is sold (other than alcoholic beverages, food
20consisting of or infused with adult use cannabis, soft drinks,
21and food that has been prepared for immediate consumption)
22which were received during the preceding calendar month,
23quarter, or year, as appropriate, and upon which tax would
24have been due but for the 0% rate imposed under Public Act
25102-700 this amendatory Act of the 102nd General Assembly. The
26return shall also include the amount of tax that would have

 

 

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1been due on food for human consumption that is to be consumed
2off the premises where it is sold (other than alcoholic
3beverages, food consisting of or infused with adult use
4cannabis, soft drinks, and food that has been prepared for
5immediate consumption) but for the 0% rate imposed under
6Public Act 102-700 this amendatory Act of the 102nd General
7Assembly.
8    On and after January 1, 2018, except for returns required
9to be filed prior to January 1, 2023 for motor vehicles,
10watercraft, aircraft, and trailers that are required to be
11registered with an agency of this State, with respect to
12retailers whose annual gross receipts average $20,000 or more,
13all returns required to be filed pursuant to this Act shall be
14filed electronically. On and after January 1, 2023, with
15respect to retailers whose annual gross receipts average
16$20,000 or more, all returns required to be filed pursuant to
17this Act, including, but not limited to, returns for motor
18vehicles, watercraft, aircraft, and trailers that are required
19to be registered with an agency of this State, shall be filed
20electronically. Retailers who demonstrate that they do not
21have access to the Internet or demonstrate hardship in filing
22electronically may petition the Department to waive the
23electronic filing requirement.
24    The Department may require returns to be filed on a
25quarterly basis. If so required, a return for each calendar
26quarter shall be filed on or before the twentieth day of the

 

 

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

 

 

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1Notwithstanding any other provisions of this Act to the
2contrary, retailers collecting tax on aviation fuel shall file
3all aviation fuel tax returns and shall make all aviation fuel
4tax payments by electronic means in the manner and form
5required by the Department. For purposes of this Section,
6"aviation fuel" means jet fuel and aviation gasoline.
7    If a taxpayer fails to sign a return within 30 days after
8the proper notice and demand for signature by the Department,
9the return shall be considered valid and any amount shown to be
10due on the return shall be deemed assessed.
11    Notwithstanding any other provision of this Act to the
12contrary, retailers subject to tax on cannabis shall file all
13cannabis tax returns and shall make all cannabis tax payments
14by electronic means in the manner and form required by the
15Department.
16    Beginning October 1, 1993, a taxpayer who has an average
17monthly tax liability of $150,000 or more shall make all
18payments required by rules of the Department by electronic
19funds transfer. Beginning October 1, 1994, a taxpayer who has
20an average monthly tax liability of $100,000 or more shall
21make all payments required by rules of the Department by
22electronic funds transfer. Beginning October 1, 1995, a
23taxpayer who has an average monthly tax liability of $50,000
24or more shall make all payments required by rules of the
25Department by electronic funds transfer. Beginning October 1,
262000, a taxpayer who has an annual tax liability of $200,000 or

 

 

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

 

 

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1    The Department shall adopt such rules as are necessary to
2effectuate a program of electronic funds transfer and the
3requirements of this Section.
4    Before October 1, 2000, if the taxpayer's average monthly
5tax liability to the Department under this Act, the Retailers'
6Occupation Tax Act, the Service Occupation Tax Act, the
7Service Use Tax Act was $10,000 or more during the preceding 4
8complete calendar quarters, he shall file a return with the
9Department each month by the 20th day of the month next
10following the month during which such tax liability is
11incurred and shall make payments to the Department on or
12before the 7th, 15th, 22nd and last day of the month during
13which such liability is incurred. On and after October 1,
142000, if the taxpayer's average monthly tax liability to the
15Department under this Act, the Retailers' Occupation Tax Act,
16the Service Occupation Tax Act, and the Service Use Tax Act was
17$20,000 or more during the preceding 4 complete calendar
18quarters, he shall file a return with the Department each
19month by the 20th day of the month next following the month
20during which such tax liability is incurred and shall make
21payment to the Department on or before the 7th, 15th, 22nd and
22last day of the month during which such liability is incurred.
23If the month during which such tax liability is incurred began
24prior to January 1, 1985, each payment shall be in an amount
25equal to 1/4 of the taxpayer's actual liability for the month
26or an amount set by the Department not to exceed 1/4 of the

 

 

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1average monthly liability of the taxpayer to the Department
2for the preceding 4 complete calendar quarters (excluding the
3month of highest liability and the month of lowest liability
4in such 4 quarter period). If the month during which such tax
5liability is incurred begins on or after January 1, 1985, and
6prior to January 1, 1987, each payment shall be in an amount
7equal to 22.5% of the taxpayer's actual liability for the
8month or 27.5% of the taxpayer's liability for the same
9calendar month of the preceding year. If the month during
10which such tax liability is incurred begins on or after
11January 1, 1987, and prior to January 1, 1988, each payment
12shall be in an amount equal to 22.5% of the taxpayer's actual
13liability for the month or 26.25% of the taxpayer's liability
14for the same calendar month of the preceding year. If the month
15during which such tax liability is incurred begins on or after
16January 1, 1988, and prior to January 1, 1989, or begins on or
17after January 1, 1996, each payment shall be in an amount equal
18to 22.5% of the taxpayer's actual liability for the month or
1925% of the taxpayer's liability for the same calendar month of
20the preceding year. If the month during which such tax
21liability is incurred begins on or after January 1, 1989, and
22prior to January 1, 1996, each payment shall be in an amount
23equal to 22.5% of the taxpayer's actual liability for the
24month or 25% of the taxpayer's liability for the same calendar
25month of the preceding year or 100% of the taxpayer's actual
26liability for the quarter monthly reporting period. The amount

 

 

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

 

 

HB4040- 40 -LRB103 31628 HLH 60767 b

1taxpayer can show the Department that a substantial change in
2the taxpayer's business has occurred which causes the taxpayer
3to anticipate that his average monthly tax liability for the
4reasonably foreseeable future will fall below the $20,000
5threshold stated above, then such taxpayer may petition the
6Department for a change in such taxpayer's reporting status.
7The Department shall change such taxpayer's reporting status
8unless it finds that such change is seasonal in nature and not
9likely to be long term. Quarter monthly payment status shall
10be determined under this paragraph as if the rate reduction to
111.25% in Public Act 102-700 this amendatory Act of the 102nd
12General Assembly on sales tax holiday items had not occurred.
13For quarter monthly payments due on or after July 1, 2023 and
14through June 30, 2024, "25% of the taxpayer's liability for
15the same calendar month of the preceding year" shall be
16determined as if the rate reduction to 1.25% in Public Act
17102-700 this amendatory Act of the 102nd General Assembly on
18sales tax holiday items had not occurred. Quarter monthly
19payment status shall be determined under this paragraph as if
20the rate reduction to 0% in Public Act 102-700 this amendatory
21Act of the 102nd General Assembly on 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) had not occurred.
26For quarter monthly payments due under this paragraph on or

 

 

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1after July 1, 2023 and through June 30, 2024, "25% of the
2taxpayer's liability for the same calendar month of the
3preceding year" shall be determined as if the rate reduction
4to 0% in Public Act 102-700 this amendatory Act of the 102nd
5General Assembly had not occurred. If any such quarter monthly
6payment is not paid at the time or in the amount required by
7this Section, then the taxpayer shall be liable for penalties
8and interest on the difference between the minimum amount due
9and the amount of such quarter monthly payment actually and
10timely paid, except insofar as the taxpayer has previously
11made payments for that month to the Department in excess of the
12minimum payments previously due as provided in this Section.
13The Department shall make reasonable rules and regulations to
14govern the quarter monthly payment amount and quarter monthly
15payment dates for taxpayers who file on other than a calendar
16monthly basis.
17    If any such payment provided for in this Section exceeds
18the taxpayer's liabilities under this Act, the Retailers'
19Occupation Tax Act, the Service Occupation Tax Act and the
20Service Use Tax Act, as shown by an original monthly return,
21the Department shall issue to the taxpayer a credit memorandum
22no later than 30 days after the date of payment, which
23memorandum may be submitted by the taxpayer to the Department
24in payment of tax liability subsequently to be remitted by the
25taxpayer to the Department or be assigned by the taxpayer to a
26similar taxpayer under this Act, the Retailers' Occupation Tax

 

 

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

 

 

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

 

 

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1retailer of aircraft, watercraft, motor vehicles or trailers
2transfers more than one aircraft, watercraft, motor vehicle or
3trailer to another aircraft, watercraft, motor vehicle or
4trailer retailer for the purpose of resale or (ii) a retailer
5of aircraft, watercraft, motor vehicles, or trailers transfers
6more than one aircraft, watercraft, motor vehicle, or trailer
7to a purchaser for use as a qualifying rolling stock as
8provided in Section 3-55 of this Act, then that seller may
9report the transfer of all the aircraft, watercraft, motor
10vehicles or trailers involved in that transaction to the
11Department on the same uniform invoice-transaction reporting
12return form. For purposes of this Section, "watercraft" means
13a Class 2, Class 3, or Class 4 watercraft as defined in Section
143-2 of the Boat Registration and Safety Act, a personal
15watercraft, or any boat equipped with an inboard motor.
16    In addition, with respect to motor vehicles, watercraft,
17aircraft, and trailers that are required to be registered with
18an agency of this State, every person who is engaged in the
19business of leasing or renting such items and who, in
20connection with such business, sells any such item to a
21retailer for the purpose of resale is, notwithstanding any
22other provision of this Section to the contrary, authorized to
23meet the return-filing requirement of this Act by reporting
24the transfer of all the aircraft, watercraft, motor vehicles,
25or trailers transferred for resale during a month to the
26Department on the same uniform invoice-transaction reporting

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

HB4040- 50 -LRB103 31628 HLH 60767 b

1beginning on the first day of the first month after the
2Arlington Megaproject is established under Division 22 of
3Article 10 of the Property Tax Code, all taxes collected under
4this Act from persons located within the Arlington Megaproject
5shall be deposited into the Arlington Megaproject
6Infrastructure Fund.
7    Beginning January 1, 1990, each month the Department shall
8pay into the State and Local Sales Tax Reform Fund, a special
9fund in the State Treasury which is hereby created, the net
10revenue realized for the preceding month from the 1% tax
11imposed under this Act.
12    Beginning January 1, 1990, each month the Department shall
13pay into the County and Mass Transit District Fund 4% of the
14net revenue realized for the preceding month from the 6.25%
15general rate on the selling price of tangible personal
16property which is purchased outside Illinois at retail from a
17retailer and which is titled or registered by an agency of this
18State's government.
19    Beginning January 1, 1990, each month the Department shall
20pay into the State and Local Sales Tax Reform Fund, a special
21fund in the State Treasury, 20% of the net revenue realized for
22the preceding month from the 6.25% general rate on the selling
23price of tangible personal property, other than (i) tangible
24personal property which is purchased outside Illinois at
25retail from a retailer and which is titled or registered by an
26agency of this State's government and (ii) aviation fuel sold

 

 

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

 

 

HB4040- 52 -LRB103 31628 HLH 60767 b

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

 

 

HB4040- 53 -LRB103 31628 HLH 60767 b

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

 

 

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

 

 

HB4040- 55 -LRB103 31628 HLH 60767 b

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

 

 

HB4040- 56 -LRB103 31628 HLH 60767 b

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

 

 

HB4040- 57 -LRB103 31628 HLH 60767 b

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

 

 

HB4040- 58 -LRB103 31628 HLH 60767 b

12029 375,000,000
22030 375,000,000
32031 375,000,000
42032 375,000,000
52033 375,000,000
62034375,000,000
72035375,000,000
82036450,000,000
9and
10each fiscal year
11thereafter that bonds
12are outstanding under
13Section 13.2 of the
14Metropolitan Pier and
15Exposition Authority Act,
16but not after fiscal year 2060.
17    Beginning July 20, 1993 and in each month of each fiscal
18year thereafter, one-eighth of the amount requested in the
19certificate of the Chairman of the Metropolitan Pier and
20Exposition Authority for that fiscal year, less the amount
21deposited into the McCormick Place Expansion Project Fund by
22the State Treasurer in the respective month under subsection
23(g) of Section 13 of the Metropolitan Pier and Exposition
24Authority Act, plus cumulative deficiencies in the deposits
25required under this Section for previous months and years,
26shall be deposited into the McCormick Place Expansion Project

 

 

HB4040- 59 -LRB103 31628 HLH 60767 b

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

 

 

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

 

 

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

 

 

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

 

 

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1        2042....................................$432,200,000
2        2043....................................$445,100,000
3    Beginning July 1, 2021 and until July 1, 2022, subject to
4the payment of amounts into the State and Local Sales Tax
5Reform Fund, the Build Illinois Fund, the McCormick Place
6Expansion Project Fund, the Illinois Tax Increment Fund, the
7Energy Infrastructure Fund, and the Tax Compliance and
8Administration Fund as provided in this Section, the
9Department shall pay each month into the Road Fund the amount
10estimated to represent 16% of the net revenue realized from
11the taxes imposed on motor fuel and gasohol. Beginning July 1,
122022 and until July 1, 2023, subject to the payment of amounts
13into the State and Local Sales Tax Reform Fund, the Build
14Illinois Fund, the McCormick Place Expansion Project Fund, the
15Illinois Tax Increment Fund, the Energy Infrastructure Fund,
16and the Tax Compliance and Administration Fund as provided in
17this Section, the Department shall pay each month into the
18Road Fund the amount estimated to represent 32% of the net
19revenue realized from the taxes imposed on motor fuel and
20gasohol. Beginning July 1, 2023 and until July 1, 2024,
21subject to the payment of amounts into the State and Local
22Sales Tax Reform Fund, the Build Illinois Fund, the McCormick
23Place Expansion Project Fund, the Illinois Tax Increment Fund,
24the Energy 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 48% of the net revenue realized from
2the taxes imposed on motor fuel and gasohol. Beginning July 1,
32024 and until July 1, 2025, 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 64% of the net
10revenue realized from the taxes imposed on motor fuel and
11gasohol. Beginning on July 1, 2025, subject to the payment of
12amounts into the State and Local Sales Tax Reform Fund, the
13Build Illinois Fund, the McCormick Place Expansion Project
14Fund, the Illinois Tax Increment Fund, the Energy
15Infrastructure Fund, and the Tax Compliance and Administration
16Fund as provided in this Section, the Department shall pay
17each month into the Road Fund the amount estimated to
18represent 80% of the net revenue realized from the taxes
19imposed on motor fuel and gasohol. As used in this paragraph
20"motor fuel" has the meaning given to that term in Section 1.1
21of the Motor Fuel Tax Law, and "gasohol" has the meaning given
22to that term in Section 3-40 of this Act.
23    Of the remainder of the moneys received by the Department
24pursuant to this Act, 75% thereof shall be paid into the State
25Treasury and 25% shall be reserved in a special account and
26used only for the transfer to the Common School Fund as part of

 

 

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1the monthly transfer from the General Revenue Fund in
2accordance with Section 8a of the State Finance Act.
3    As soon as possible after the first day of each month, upon
4certification of the Department of Revenue, the Comptroller
5shall order transferred and the Treasurer shall transfer from
6the General Revenue Fund to the Motor Fuel Tax Fund an amount
7equal to 1.7% of 80% of the net revenue realized under this Act
8for the second preceding month. Beginning April 1, 2000, this
9transfer is no longer required and shall not be made.
10    Net revenue realized for a month shall be the revenue
11collected by the State pursuant to this Act, less the amount
12paid out during that month as refunds to taxpayers for
13overpayment of liability.
14    For greater simplicity of administration, manufacturers,
15importers and wholesalers whose products are sold at retail in
16Illinois by numerous retailers, and who wish to do so, may
17assume the responsibility for accounting and paying to the
18Department all tax accruing under this Act with respect to
19such sales, if the retailers who are affected do not make
20written objection to the Department to this arrangement.
21(Source: P.A. 101-10, Article 15, Section 15-10, eff. 6-5-19;
22101-10, Article 25, Section 25-105, eff. 6-5-19; 101-27, eff.
236-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
24101-636, eff. 6-10-20; 102-700, Article 60, Section 60-15,
25eff. 4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;
26102-1019, eff. 1-1-23; revised 12-13-22.)
 

 

 

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1    Section 910. The Service Use Tax Act is amended by
2changing Sections 3-5 and 9 as follows:
 
3    (35 ILCS 110/3-5)
4    Sec. 3-5. Exemptions. Use of the following tangible
5personal property is exempt from the tax imposed by this Act:
6    (1) Personal property purchased from a corporation,
7society, association, foundation, institution, or
8organization, other than a limited liability company, that is
9organized and operated as a not-for-profit service enterprise
10for the benefit of persons 65 years of age or older if the
11personal property was not purchased by the enterprise for the
12purpose of resale by the enterprise.
13    (2) Personal property purchased by a non-profit Illinois
14county fair association for use in conducting, operating, or
15promoting the county fair.
16    (3) Personal property purchased by a not-for-profit arts
17or cultural organization that establishes, by proof required
18by the Department by rule, that it has received an exemption
19under Section 501(c)(3) of the Internal Revenue Code and that
20is organized and operated primarily for the presentation or
21support of arts or cultural programming, activities, or
22services. These organizations include, but are not limited to,
23music and dramatic arts organizations such as symphony
24orchestras and theatrical groups, arts and cultural service

 

 

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1organizations, local arts councils, visual arts organizations,
2and media arts organizations. On and after July 1, 2001 (the
3effective date of Public Act 92-35), however, an entity
4otherwise eligible for this exemption shall not make tax-free
5purchases unless it has an active identification number issued
6by the Department.
7    (4) Legal tender, currency, medallions, or gold or silver
8coinage issued by the State of Illinois, the government of the
9United States of America, or the government of any foreign
10country, and bullion.
11    (5) Until July 1, 2003 and beginning again on September 1,
122004 through August 30, 2014, graphic arts machinery and
13equipment, including repair and replacement parts, both new
14and used, and including that manufactured on special order or
15purchased for lease, certified by the purchaser to be used
16primarily for graphic arts production. Equipment includes
17chemicals or chemicals acting as catalysts but only if the
18chemicals or chemicals acting as catalysts effect a direct and
19immediate change upon a graphic arts product. Beginning on
20July 1, 2017, graphic arts machinery and equipment is included
21in the manufacturing and assembling machinery and equipment
22exemption under Section 2 of this Act.
23    (6) Personal property purchased from a teacher-sponsored
24student organization affiliated with an elementary or
25secondary school located in Illinois.
26    (7) 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 (7). Agricultural chemical tender
15tanks and dry boxes shall include units sold separately from a
16motor vehicle required to be licensed and units sold mounted
17on a motor vehicle required to be licensed if the selling price
18of the tender is separately stated.
19    Farm machinery and equipment shall include precision
20farming equipment that is installed or purchased to be
21installed on farm machinery and equipment including, but not
22limited to, tractors, harvesters, sprayers, planters, seeders,
23or spreaders. Precision farming equipment includes, but is not
24limited to, soil testing sensors, computers, monitors,
25software, global positioning and mapping systems, and other
26such equipment.

 

 

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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 (7) is exempt from the
8provisions of Section 3-75.
9    (8) Until June 30, 2013, fuel and petroleum products sold
10to or used by an air common carrier, certified by the carrier
11to be used for consumption, shipment, or storage in the
12conduct of its business as an air common carrier, for a flight
13destined for or returning from a location or locations outside
14the United States without regard to previous or subsequent
15domestic stopovers.
16    Beginning July 1, 2013, fuel and petroleum products sold
17to or used by an air carrier, certified by the carrier to be
18used for consumption, shipment, or storage in the conduct of
19its business as an air common carrier, for a flight that (i) is
20engaged in foreign trade or is engaged in trade between the
21United States and any of its possessions and (ii) transports
22at least one individual or package for hire from the city of
23origination to the city of final destination on the same
24aircraft, without regard to a change in the flight number of
25that aircraft.
26    (9) Proceeds of mandatory service charges separately

 

 

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1stated on customers' bills for the purchase and consumption of
2food and beverages acquired as an incident to the purchase of a
3service from a serviceman, to the extent that the proceeds of
4the service charge are in fact turned over as tips or as a
5substitute for tips to the employees who participate directly
6in preparing, serving, hosting or cleaning up the food or
7beverage function with respect to which the service charge is
8imposed.
9    (10) Until July 1, 2003, oil field exploration, drilling,
10and production equipment, including (i) rigs and parts of
11rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
12pipe and tubular goods, including casing and drill strings,
13(iii) pumps and pump-jack units, (iv) storage tanks and flow
14lines, (v) any individual replacement part for oil field
15exploration, drilling, and production equipment, and (vi)
16machinery and equipment purchased for lease; but excluding
17motor vehicles required to be registered under the Illinois
18Vehicle Code.
19    (11) Proceeds from the sale of photoprocessing machinery
20and equipment, including repair and replacement parts, both
21new and used, including that manufactured on special order,
22certified by the purchaser to be used primarily for
23photoprocessing, and including photoprocessing machinery and
24equipment purchased for lease.
25    (12) Until July 1, 2028, coal and aggregate exploration,
26mining, off-highway hauling, processing, maintenance, and

 

 

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1reclamation equipment, including replacement parts and
2equipment, and including equipment purchased for lease, but
3excluding motor vehicles required to be registered under the
4Illinois Vehicle Code. The changes made to this Section by
5Public Act 97-767 apply on and after July 1, 2003, but no claim
6for credit or refund is allowed on or after August 16, 2013
7(the effective date of Public Act 98-456) for such taxes paid
8during the period beginning July 1, 2003 and ending on August
916, 2013 (the effective date of Public Act 98-456).
10    (13) Semen used for artificial insemination of livestock
11for direct agricultural production.
12    (14) Horses, or interests in horses, registered with and
13meeting the requirements of any of the Arabian Horse Club
14Registry of America, Appaloosa Horse Club, American Quarter
15Horse Association, United States Trotting Association, or
16Jockey Club, as appropriate, used for purposes of breeding or
17racing for prizes. This item (14) is exempt from the
18provisions of Section 3-75, and the exemption provided for
19under this item (14) applies for all periods beginning May 30,
201995, but no claim for credit or refund is allowed on or after
21January 1, 2008 (the effective date of Public Act 95-88) for
22such taxes paid during the period beginning May 30, 2000 and
23ending on January 1, 2008 (the effective date of Public Act
2495-88).
25    (15) Computers and communications equipment utilized for
26any hospital purpose and equipment used in the diagnosis,

 

 

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

 

 

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

 

 

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1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is used in
3the performance of infrastructure repairs in this State,
4including but not limited to municipal roads and streets,
5access roads, bridges, sidewalks, waste disposal systems,
6water and sewer line extensions, water distribution and
7purification facilities, storm water drainage and retention
8facilities, and sewage treatment facilities, resulting from a
9State or federally declared disaster in Illinois or bordering
10Illinois when such repairs are initiated on facilities located
11in the declared disaster area within 6 months after the
12disaster.
13    (19) Beginning July 1, 1999, game or game birds purchased
14at a "game breeding and hunting preserve area" as that term is
15used in the Wildlife Code. This paragraph is exempt from the
16provisions of Section 3-75.
17    (20) A motor vehicle, as that term is defined in Section
181-146 of the Illinois Vehicle Code, that is donated to a
19corporation, limited liability company, society, association,
20foundation, or institution that is determined by the
21Department to be organized and operated exclusively for
22educational purposes. For purposes of this exemption, "a
23corporation, limited liability company, society, association,
24foundation, or institution organized and operated exclusively
25for educational purposes" means all tax-supported public
26schools, private schools that offer systematic instruction in

 

 

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1useful branches of learning by methods common to public
2schools and that compare favorably in their scope and
3intensity with the course of study presented in tax-supported
4schools, and vocational or technical schools or institutes
5organized and operated exclusively to provide a course of
6study of not less than 6 weeks duration and designed to prepare
7individuals to follow a trade or to pursue a manual,
8technical, mechanical, industrial, business, or commercial
9occupation.
10    (21) Beginning January 1, 2000, personal property,
11including food, purchased through fundraising events for the
12benefit of a public or private elementary or secondary school,
13a group of those schools, or one or more school districts if
14the events are sponsored by an entity recognized by the school
15district that consists primarily of volunteers and includes
16parents and teachers of the school children. This paragraph
17does not apply to fundraising events (i) for the benefit of
18private home instruction or (ii) for which the fundraising
19entity purchases the personal property sold at the events from
20another individual or entity that sold the property for the
21purpose of resale by the fundraising entity and that profits
22from the sale to the fundraising entity. This paragraph is
23exempt from the provisions of Section 3-75.
24    (22) Beginning January 1, 2000 and through December 31,
252001, new or used automatic vending machines that prepare and
26serve hot food and beverages, including coffee, soup, and

 

 

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

 

 

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

 

 

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1Occupation Tax Act. If the property is leased in a manner that
2does not qualify for this exemption or is used in any other
3nonexempt manner, the lessor shall be liable for the tax
4imposed under this Act or the Use Tax Act, as the case may be,
5based on the fair market value of the property at the time the
6nonqualifying use occurs. No lessor shall collect or attempt
7to collect an amount (however designated) that purports to
8reimburse that lessor for the tax imposed by this Act or the
9Use Tax Act, as the case may be, if the tax has not been paid
10by the lessor. If a lessor improperly collects any such amount
11from the lessee, the lessee shall have a legal right to claim a
12refund of that amount from the lessor. If, however, that
13amount is not refunded to the lessee for any reason, the lessor
14is liable to pay that amount to the Department. This paragraph
15is exempt from the provisions of Section 3-75.
16    (26) Beginning January 1, 2008, tangible personal property
17used in the construction or maintenance of a community water
18supply, as defined under Section 3.145 of the Environmental
19Protection Act, that is operated by a not-for-profit
20corporation that holds a valid water supply permit issued
21under Title IV of the Environmental Protection Act. This
22paragraph is exempt from the provisions of Section 3-75.
23    (27) Beginning January 1, 2010 and continuing through
24December 31, 2024, materials, parts, equipment, components,
25and furnishings incorporated into or upon an aircraft as part
26of the modification, refurbishment, completion, replacement,

 

 

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1repair, or maintenance of the aircraft. This exemption
2includes consumable supplies used in the modification,
3refurbishment, completion, replacement, repair, and
4maintenance of aircraft, but excludes any materials, parts,
5equipment, components, and consumable supplies used in the
6modification, replacement, repair, and maintenance of aircraft
7engines or power plants, whether such engines or power plants
8are installed or uninstalled upon any such aircraft.
9"Consumable supplies" include, but are not limited to,
10adhesive, tape, sandpaper, general purpose lubricants,
11cleaning solution, latex gloves, and protective films. This
12exemption applies only to the use of qualifying tangible
13personal property transferred incident to the modification,
14refurbishment, completion, replacement, repair, or maintenance
15of aircraft by persons who (i) hold an Air Agency Certificate
16and are empowered to operate an approved repair station by the
17Federal Aviation Administration, (ii) have a Class IV Rating,
18and (iii) conduct operations in accordance with Part 145 of
19the Federal Aviation Regulations. The exemption does not
20include aircraft operated by a commercial air carrier
21providing scheduled passenger air service pursuant to
22authority issued under Part 121 or Part 129 of the Federal
23Aviation Regulations. The changes made to this paragraph (27)
24by Public Act 98-534 are declarative of existing law. It is the
25intent of the General Assembly that the exemption under this
26paragraph (27) applies continuously from January 1, 2010

 

 

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1through December 31, 2024; however, no claim for credit or
2refund is allowed for taxes paid as a result of the
3disallowance of this exemption on or after January 1, 2015 and
4prior to February 5, 2020 (the effective date of Public Act
5101-629) this amendatory Act of the 101st General Assembly.
6    (28) Tangible personal property purchased by a
7public-facilities corporation, as described in Section
811-65-10 of the Illinois Municipal Code, for purposes of
9constructing or furnishing a municipal convention hall, but
10only if the legal title to the municipal convention hall is
11transferred to the municipality without any further
12consideration by or on behalf of the municipality at the time
13of the completion of the municipal convention hall or upon the
14retirement or redemption of any bonds or other debt
15instruments issued by the public-facilities corporation in
16connection with the development of the municipal convention
17hall. This exemption includes existing public-facilities
18corporations as provided in Section 11-65-25 of the Illinois
19Municipal Code. This paragraph is exempt from the provisions
20of Section 3-75.
21    (29) Beginning January 1, 2017 and through December 31,
222026, menstrual pads, tampons, and menstrual cups.
23    (30) Tangible personal property transferred to a purchaser
24who is exempt from the tax imposed by this Act by operation of
25federal law. This paragraph is exempt from the provisions of
26Section 3-75.

 

 

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1    (31) Qualified tangible personal property used in the
2construction or operation of a data center that has been
3granted a certificate of exemption by the Department of
4Commerce and Economic Opportunity, whether that tangible
5personal property is purchased by the owner, operator, or
6tenant of the data center or by a contractor or subcontractor
7of the owner, operator, or tenant. Data centers that would
8have qualified for a certificate of exemption prior to January
91, 2020 had Public Act 101-31 this amendatory Act of the 101st
10General Assembly been in effect, may apply for and obtain an
11exemption for subsequent purchases of computer equipment or
12enabling software purchased or leased to upgrade, supplement,
13or replace computer equipment or enabling software purchased
14or leased in the original investment that would have
15qualified.
16    The Department of Commerce and Economic Opportunity shall
17grant a certificate of exemption under this item (31) to
18qualified data centers as defined by Section 605-1025 of the
19Department of Commerce and Economic Opportunity Law of the
20Civil Administrative Code of Illinois.
21    For the purposes of this item (31):
22        "Data center" means a building or a series of
23    buildings rehabilitated or constructed to house working
24    servers in one physical location or multiple sites within
25    the State of Illinois.
26        "Qualified tangible personal property" means:

 

 

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

 

 

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1    This item (31) is exempt from the provisions of Section
23-75.
3    (32) Beginning July 1, 2022, breast pumps, breast pump
4collection and storage supplies, and breast pump kits. This
5item (32) is exempt from the provisions of Section 3-75. As
6used in this item (32):
7        "Breast pump" means an electrically controlled or
8    manually controlled pump device designed or marketed to be
9    used to express milk from a human breast during lactation,
10    including the pump device and any battery, AC adapter, or
11    other power supply unit that is used to power the pump
12    device and is packaged and sold with the pump device at the
13    time of sale.
14        "Breast pump collection and storage supplies" means
15    items of tangible personal property designed or marketed
16    to be used in conjunction with a breast pump to collect
17    milk expressed from a human breast and to store collected
18    milk until it is ready for consumption.
19        "Breast pump collection and storage supplies"
20    includes, but is not limited to: breast shields and breast
21    shield connectors; breast pump tubes and tubing adapters;
22    breast pump valves and membranes; backflow protectors and
23    backflow protector adaptors; bottles and bottle caps
24    specific to the operation of the breast pump; and breast
25    milk storage bags.
26        "Breast pump collection and storage supplies" does not

 

 

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1    include: (1) bottles and bottle caps not specific to the
2    operation of the breast pump; (2) breast pump travel bags
3    and other similar carrying accessories, including ice
4    packs, labels, and other similar products; (3) breast pump
5    cleaning supplies; (4) nursing bras, bra pads, breast
6    shells, and other similar products; and (5) creams,
7    ointments, and other similar products that relieve
8    breastfeeding-related symptoms or conditions of the
9    breasts or nipples, unless sold as part of a breast pump
10    kit that is pre-packaged by the breast pump manufacturer
11    or distributor.
12        "Breast pump kit" means a kit that: (1) contains no
13    more than a breast pump, breast pump collection and
14    storage supplies, a rechargeable battery for operating the
15    breast pump, a breastmilk cooler, bottle stands, ice
16    packs, and a breast pump carrying case; and (2) is
17    pre-packaged as a breast pump kit by the breast pump
18    manufacturer or distributor.
19    (33) (32) Tangible personal property sold by or on behalf
20of the State Treasurer pursuant to the Revised Uniform
21Unclaimed Property Act. This item (33) (32) is exempt from the
22provisions of Section 3-75.
23    (34) Qualified tangible personal property used in the
24construction or operation of a megaproject for which a
25certificate has been issued by the Department of Revenue as
26described and defined in Division 22 of Article 10 of the

 

 

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1Property Tax Code, whether that tangible personal property is
2purchased by the owner, operator, or tenant of the megaproject
3or by a contractor or subcontractor of the owner, operator, or
4tenant.
5    For the purposes of this item (34):
6    "Megaproject" has the meaning ascribed to that term in
7Section 10-910 of the Property Tax Code.
8    "Qualified tangible personal property" means: electrical
9systems and equipment; climate control and chilling equipment
10and systems; mechanical systems and equipment; monitoring and
11security systems; emergency generators; hardware; computers;
12servers; data storage devices; network connectivity equipment;
13racks; cabinets; telecommunications cabling infrastructure;
14raised floor systems; peripheral components or systems;
15software; mechanical, electrical, or plumbing systems; battery
16systems; cooling systems and towers; temperature control
17systems; other cabling; and other data center infrastructure
18equipment and systems necessary to operate qualified tangible
19personal property, including fixtures; and component parts of
20any of the foregoing, including installation, maintenance,
21repair, refurbishment, and replacement of qualified tangible
22personal property to generate, transform, transmit,
23distribute, or manage electricity necessary to operate
24qualified tangible personal property; and all other tangible
25personal property that is essential to the operations of a
26megaproject. The term "qualified tangible personal property"

 

 

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1also includes building materials to be incorporated into the
2megaproject. To document the exemption allowed under this
3Section, the retailer, contractor or subcontractor or supplier
4must obtain from the purchaser a copy of the certificate
5issued by the Department of Revenue for the megaproject as
6described and defined in Division 22 of Article 10 of the
7Property Tax Code.
8    This item (34) is exempt from the provisions of Section
93-75.
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; 102-700, Article
1270, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
1375-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
 
14    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
15    Sec. 9. Each serviceman required or authorized to collect
16the tax herein imposed shall pay to the Department the amount
17of such tax (except as otherwise provided) at the time when he
18is required to file his return for the period during which such
19tax was collected, less a discount of 2.1% prior to January 1,
201990 and 1.75% on and after January 1, 1990, or $5 per calendar
21year, whichever is greater, which is allowed to reimburse the
22serviceman for expenses incurred in collecting the tax,
23keeping records, preparing and filing returns, remitting the
24tax and supplying data to the Department on request. When
25determining the discount allowed under this Section,

 

 

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1servicemen shall include the amount of tax that would have
2been due at the 1% rate but for the 0% rate imposed under this
3amendatory Act of the 102nd General Assembly. The discount
4under this Section is not allowed for the 1.25% portion of
5taxes paid on aviation fuel that is subject to the revenue use
6requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
7discount allowed under this Section is allowed only for
8returns that are filed in the manner required by this Act. The
9Department may disallow the discount for servicemen whose
10certificate of registration is revoked at the time the return
11is filed, but only if the Department's decision to revoke the
12certificate of registration has become final. A serviceman
13need not remit that part of any tax collected by him to the
14extent that he is required to pay and does pay the tax imposed
15by the Service Occupation Tax Act with respect to his sale of
16service involving the incidental transfer by him of the same
17property.
18    Except as provided hereinafter in this Section, on or
19before the twentieth day of each calendar month, such
20serviceman shall file a return for the preceding calendar
21month in accordance with reasonable Rules and Regulations to
22be promulgated by the Department. Such return shall be filed
23on a form prescribed by the Department and shall contain such
24information as the Department may reasonably require. The
25return shall include the gross receipts which were received
26during the preceding calendar month or quarter on the

 

 

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1following items upon which tax would have been due but for the
20% rate imposed under this amendatory Act of the 102nd General
3Assembly: (i) food for human consumption that is to be
4consumed 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 (ii) food prepared for immediate
8consumption and transferred incident to a sale of service
9subject to this Act or the Service Occupation Tax Act by an
10entity licensed under the Hospital Licensing Act, the Nursing
11Home Care Act, the Assisted Living and Shared Housing Act, the
12ID/DD Community Care Act, the MC/DD Act, the Specialized
13Mental Health Rehabilitation Act of 2013, or the Child Care
14Act of 1969, or an entity that holds a permit issued pursuant
15to the Life Care Facilities Act. The return shall also include
16the amount of tax that would have been due on the items listed
17in the previous sentence but for the 0% rate imposed under this
18amendatory Act of the 102nd General Assembly.
19    On and after January 1, 2018, with respect to servicemen
20whose annual gross receipts average $20,000 or more, all
21returns required to be filed pursuant to this Act shall be
22filed electronically. Servicemen who demonstrate that they do
23not have access to the Internet or demonstrate hardship in
24filing electronically 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

 

 

HB4040- 91 -LRB103 31628 HLH 60767 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

 

 

HB4040- 92 -LRB103 31628 HLH 60767 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

 

 

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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

 

 

HB4040- 94 -LRB103 31628 HLH 60767 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    Notwithstanding any provision of law to the contrary,
15beginning on the first day of the first month after the
16Arlington Megaproject is established under Division 22 of
17Article 10 of the Property Tax Code, all taxes collected under
18this Act from persons located within the Arlington Megaproject
19shall be deposited into the Arlington Megaproject
20Infrastructure Fund.
21    Beginning January 1, 1990, each month the Department shall
22pay into the State and Local Tax Reform Fund, a special fund in
23the State Treasury, the net revenue realized for the preceding
24month from the 1% tax imposed under this Act.
25    Beginning January 1, 1990, each month the Department shall
26pay into the State and Local Sales Tax Reform Fund 20% of the

 

 

HB4040- 95 -LRB103 31628 HLH 60767 b

1net revenue realized for the preceding month from the 6.25%
2general rate on transfers of tangible personal property, other
3than (i) tangible personal property which is purchased outside
4Illinois at retail from a retailer and which is titled or
5registered by an agency of this State's government and (ii)
6aviation fuel sold on or after December 1, 2019. This
7exception for aviation fuel only applies for so long as the
8revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
947133 are binding on the State.
10    For aviation fuel sold on or after December 1, 2019, each
11month the Department shall pay into the State Aviation Program
12Fund 20% of the net revenue realized for the preceding month
13from the 6.25% general rate on the selling price of aviation
14fuel, less an amount estimated by the Department to be
15required for refunds of the 20% portion of the tax on aviation
16fuel under this Act, which amount shall be deposited into the
17Aviation Fuel Sales Tax Refund Fund. The Department shall only
18pay moneys into the State Aviation Program Fund and the
19Aviation Fuel Sales Tax Refund Fund under this Act for so long
20as the revenue use requirements of 49 U.S.C. 47107(b) and 49
21U.S.C. 47133 are binding on the State.
22    Beginning August 1, 2000, each month the Department shall
23pay into the State and Local Sales Tax Reform Fund 100% of the
24net revenue realized for the preceding month from the 1.25%
25rate on the selling price of motor fuel and gasohol.
26    Beginning October 1, 2009, each month the Department shall

 

 

HB4040- 96 -LRB103 31628 HLH 60767 b

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

 

 

HB4040- 97 -LRB103 31628 HLH 60767 b

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

 

 

HB4040- 98 -LRB103 31628 HLH 60767 b

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

 

 

HB4040- 99 -LRB103 31628 HLH 60767 b

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

 

 

HB4040- 100 -LRB103 31628 HLH 60767 b

1Fiscal YearTotal Deposit
21993         $0
31994 53,000,000
41995 58,000,000
51996 61,000,000
61997 64,000,000
71998 68,000,000
81999 71,000,000
92000 75,000,000
102001 80,000,000
112002 93,000,000
122003 99,000,000
132004103,000,000
142005108,000,000
152006113,000,000
162007119,000,000
172008126,000,000
182009132,000,000
192010139,000,000
202011146,000,000
212012153,000,000
222013161,000,000
232014170,000,000
242015179,000,000
252016189,000,000

 

 

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12017199,000,000
22018210,000,000
32019221,000,000
42020233,000,000
52021300,000,000
62022300,000,000
72023300,000,000
82024 300,000,000
92025 300,000,000
102026 300,000,000
112027 375,000,000
122028 375,000,000
132029 375,000,000
142030 375,000,000
152031 375,000,000
162032 375,000,000
172033 375,000,000
182034375,000,000
192035375,000,000
202036450,000,000
21and
22each fiscal year
23thereafter that bonds
24are outstanding under
25Section 13.2 of the
26Metropolitan Pier and

 

 

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

 

 

HB4040- 103 -LRB103 31628 HLH 60767 b

1requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
2binding 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

 

 

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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

 

 

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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

 

 

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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 State and Local Sales Tax
17Reform Fund, the Build Illinois Fund, the McCormick Place
18Expansion Project Fund, the Illinois Tax Increment Fund, the
19Energy Infrastructure Fund, and the Tax Compliance and
20Administration Fund as provided in this Section, the
21Department shall pay each month into the Road Fund the amount
22estimated to represent 16% of the net revenue realized from
23the taxes imposed on motor fuel and gasohol. Beginning July 1,
242022 and until July 1, 2023, subject to the payment of amounts
25into the State and Local Sales Tax Reform Fund, the Build
26Illinois Fund, the McCormick Place Expansion Project Fund, the

 

 

HB4040- 107 -LRB103 31628 HLH 60767 b

1Illinois Tax Increment Fund, the Energy Infrastructure Fund,
2and the Tax Compliance and Administration Fund as provided in
3this Section, the Department shall pay each month into the
4Road Fund the amount estimated to represent 32% of the net
5revenue realized from the taxes imposed on motor fuel and
6gasohol. Beginning July 1, 2023 and until July 1, 2024,
7subject to the payment of amounts into the State and Local
8Sales Tax Reform Fund, the Build Illinois Fund, the McCormick
9Place Expansion Project Fund, the Illinois Tax Increment Fund,
10the Energy Infrastructure Fund, and the Tax Compliance and
11Administration Fund as provided in this Section, the
12Department shall pay each month into the Road Fund the amount
13estimated to represent 48% of the net revenue realized from
14the taxes imposed on motor fuel and gasohol. Beginning July 1,
152024 and until July 1, 2025, subject to the payment of amounts
16into the State and Local Sales Tax Reform Fund, the Build
17Illinois Fund, the McCormick Place Expansion Project Fund, the
18Illinois Tax Increment Fund, the Energy Infrastructure Fund,
19and the Tax Compliance and Administration Fund as provided in
20this Section, the Department shall pay each month into the
21Road Fund the amount estimated to represent 64% of the net
22revenue realized from the taxes imposed on motor fuel and
23gasohol. Beginning on July 1, 2025, subject to the payment of
24amounts into the State and Local Sales Tax Reform Fund, the
25Build Illinois Fund, the McCormick Place Expansion Project
26Fund, the Illinois Tax Increment Fund, the Energy

 

 

HB4040- 108 -LRB103 31628 HLH 60767 b

1Infrastructure Fund, and the Tax Compliance and Administration
2Fund as provided in this Section, the Department shall pay
3each month into the Road Fund the amount estimated to
4represent 80% of the net revenue realized from the taxes
5imposed on motor fuel and gasohol. As used in this paragraph
6"motor fuel" has the meaning given to that term in Section 1.1
7of the Motor Fuel Tax Law, and "gasohol" has the meaning given
8to that term in Section 3-40 of the Use Tax Act.
9    Of the remainder of the moneys received by the Department
10pursuant to this Act, 75% thereof shall be paid into the
11General Revenue Fund of the State Treasury and 25% shall be
12reserved in a special account and used only for the transfer to
13the Common School Fund as part of the monthly transfer from the
14General Revenue Fund in accordance with Section 8a of the
15State Finance Act.
16    As soon as possible after the first day of each month, upon
17certification of the Department of Revenue, the Comptroller
18shall order transferred and the Treasurer shall transfer from
19the General Revenue Fund to the Motor Fuel Tax Fund an amount
20equal to 1.7% of 80% of the net revenue realized under this Act
21for the second preceding month. Beginning April 1, 2000, this
22transfer is no longer required and shall not be made.
23    Net revenue realized for a month shall be the revenue
24collected by the State pursuant to this Act, less the amount
25paid out during that month as refunds to taxpayers for
26overpayment of liability.

 

 

HB4040- 109 -LRB103 31628 HLH 60767 b

1(Source: P.A. 101-10, Article 15, Section 15-15, eff. 6-5-19;
2101-10, Article 25, Section 25-110, eff. 6-5-19; 101-27, eff.
36-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
4101-636, eff. 6-10-20; 102-700, eff. 4-19-22.)
 
5    Section 915. The Service Occupation Tax Act is amended by
6changing Sections 3-5 and 9 as follows:
 
7    (35 ILCS 115/3-5)
8    Sec. 3-5. Exemptions. The following tangible personal
9property is exempt from the tax imposed by this Act:
10    (1) Personal property sold by a corporation, society,
11association, foundation, institution, or organization, other
12than a limited liability company, that is organized and
13operated as a not-for-profit service enterprise for the
14benefit of persons 65 years of age or older if the personal
15property was not purchased by the enterprise for the purpose
16of resale by the enterprise.
17    (2) Personal property purchased by a not-for-profit
18Illinois county fair association for use in conducting,
19operating, or promoting the county fair.
20    (3) Personal property purchased by any not-for-profit arts
21or cultural organization that establishes, by proof required
22by the Department by rule, that it has received an exemption
23under Section 501(c)(3) of the Internal Revenue Code and that
24is organized and operated primarily for the presentation or

 

 

HB4040- 110 -LRB103 31628 HLH 60767 b

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) Legal tender, currency, medallions, or gold or silver
12coinage issued by the State of Illinois, the government of the
13United States of America, or the government of any foreign
14country, and bullion.
15    (5) Until July 1, 2003 and beginning again on September 1,
162004 through August 30, 2014, graphic arts machinery and
17equipment, including repair and replacement parts, both new
18and used, and including that manufactured on special order or
19purchased for lease, certified by the purchaser to be used
20primarily for graphic arts production. Equipment includes
21chemicals or chemicals acting as catalysts but only if the
22chemicals or chemicals acting as catalysts effect a direct and
23immediate change upon a graphic arts product. Beginning on
24July 1, 2017, graphic arts machinery and equipment is included
25in the manufacturing and assembling machinery and equipment
26exemption under Section 2 of this Act.

 

 

HB4040- 111 -LRB103 31628 HLH 60767 b

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

 

 

HB4040- 112 -LRB103 31628 HLH 60767 b

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

 

 

HB4040- 113 -LRB103 31628 HLH 60767 b

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

 

 

HB4040- 114 -LRB103 31628 HLH 60767 b

1    (12) Until July 1, 2028, coal and aggregate exploration,
2mining, off-highway hauling, processing, maintenance, and
3reclamation equipment, including replacement parts and
4equipment, and including equipment purchased for lease, but
5excluding motor vehicles required to be registered under the
6Illinois Vehicle Code. The changes made to this Section by
7Public Act 97-767 apply on and after July 1, 2003, but no claim
8for credit or refund is allowed on or after August 16, 2013
9(the effective date of Public Act 98-456) for such taxes paid
10during the period beginning July 1, 2003 and ending on August
1116, 2013 (the effective date of Public Act 98-456).
12    (13) Beginning January 1, 1992 and through June 30, 2016,
13food for human consumption that is to be consumed off the
14premises where it is sold (other than alcoholic beverages,
15soft drinks and food that has been prepared for immediate
16consumption) and prescription and non-prescription medicines,
17drugs, medical appliances, and insulin, urine testing
18materials, syringes, and needles used by diabetics, for human
19use, when purchased for use by a person receiving medical
20assistance under Article V of the Illinois Public Aid Code who
21resides in a licensed long-term care facility, as defined in
22the Nursing Home Care Act, or in a licensed facility as defined
23in the ID/DD Community Care Act, the MC/DD Act, or the
24Specialized Mental Health Rehabilitation Act of 2013.
25    (14) Semen used for artificial insemination of livestock
26for direct agricultural production.

 

 

HB4040- 115 -LRB103 31628 HLH 60767 b

1    (15) Horses, or interests in horses, registered with and
2meeting the requirements of any of the Arabian Horse Club
3Registry of America, Appaloosa Horse Club, American Quarter
4Horse Association, United States Trotting Association, or
5Jockey Club, as appropriate, used for purposes of breeding or
6racing for prizes. This item (15) is exempt from the
7provisions of Section 3-55, and the exemption provided for
8under this item (15) applies for all periods beginning May 30,
91995, but no claim for credit or refund is allowed on or after
10January 1, 2008 (the effective date of Public Act 95-88) for
11such taxes paid during the period beginning May 30, 2000 and
12ending on January 1, 2008 (the effective date of Public Act
1395-88).
14    (16) Computers and communications equipment utilized for
15any hospital purpose and equipment used in the diagnosis,
16analysis, or treatment of hospital patients sold to a lessor
17who leases the equipment, under a lease of one year or longer
18executed or in effect at the time of the purchase, to a
19hospital that has been issued an active tax exemption
20identification number by the Department under Section 1g of
21the Retailers' Occupation Tax Act.
22    (17) Personal property sold to a lessor who leases the
23property, under a lease of one year or longer executed or in
24effect at the time of the purchase, to a governmental body that
25has been issued an active tax exemption identification number
26by the Department under Section 1g of the Retailers'

 

 

HB4040- 116 -LRB103 31628 HLH 60767 b

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

 

 

HB4040- 117 -LRB103 31628 HLH 60767 b

1in the Wildlife Code. This paragraph is exempt from the
2provisions of Section 3-55.
3    (21) A motor vehicle, as that term is defined in Section
41-146 of the Illinois Vehicle Code, that is donated to a
5corporation, limited liability company, society, association,
6foundation, or institution that is determined by the
7Department to be organized and operated exclusively for
8educational purposes. For purposes of this exemption, "a
9corporation, limited liability company, society, association,
10foundation, or institution organized and operated exclusively
11for educational purposes" means all tax-supported public
12schools, private schools that offer systematic instruction in
13useful branches of learning by methods common to public
14schools and that compare favorably in their scope and
15intensity with the course of study presented in tax-supported
16schools, and vocational or technical schools or institutes
17organized and operated exclusively to provide a course of
18study of not less than 6 weeks duration and designed to prepare
19individuals to follow a trade or to pursue a manual,
20technical, mechanical, industrial, business, or commercial
21occupation.
22    (22) Beginning January 1, 2000, personal property,
23including food, purchased through fundraising events for the
24benefit of a public or private elementary or secondary school,
25a group of those schools, or one or more school districts if
26the events are sponsored by an entity recognized by the school

 

 

HB4040- 118 -LRB103 31628 HLH 60767 b

1district that consists primarily of volunteers and includes
2parents and teachers of the school children. This paragraph
3does not apply to fundraising events (i) for the benefit of
4private home instruction or (ii) for which the fundraising
5entity purchases the personal property sold at the events from
6another individual or entity that sold the property for the
7purpose of resale by the fundraising entity and that profits
8from the sale to the fundraising entity. This paragraph is
9exempt from the provisions of Section 3-55.
10    (23) Beginning January 1, 2000 and through December 31,
112001, new or used automatic vending machines that prepare and
12serve hot food and beverages, including coffee, soup, and
13other items, and replacement parts for these machines.
14Beginning January 1, 2002 and through June 30, 2003, machines
15and parts for machines used in commercial, coin-operated
16amusement and vending business if a use or occupation tax is
17paid on the gross receipts derived from the use of the
18commercial, coin-operated amusement and vending machines. This
19paragraph is exempt from the provisions of Section 3-55.
20    (24) Beginning on August 2, 2001 (the effective date of
21Public Act 92-227), computers and communications equipment
22utilized for any hospital purpose and equipment used in the
23diagnosis, analysis, or treatment of hospital patients sold to
24a lessor who leases the equipment, under a lease of one year or
25longer executed or in effect at the time of the purchase, to a
26hospital that has been issued an active tax exemption

 

 

HB4040- 119 -LRB103 31628 HLH 60767 b

1identification number by the Department under Section 1g of
2the Retailers' Occupation Tax Act. This paragraph is exempt
3from the provisions of Section 3-55.
4    (25) Beginning on August 2, 2001 (the effective date of
5Public Act 92-227), personal property sold to a lessor who
6leases the property, under a lease of one year or longer
7executed or in effect at the time of the purchase, to a
8governmental body that has been issued an active tax exemption
9identification number by the Department under Section 1g of
10the Retailers' Occupation Tax Act. This paragraph is exempt
11from the provisions of Section 3-55.
12    (26) Beginning on January 1, 2002 and through June 30,
132016, tangible personal property purchased from an Illinois
14retailer by a taxpayer engaged in centralized purchasing
15activities in Illinois who will, upon receipt of the property
16in Illinois, temporarily store the property in Illinois (i)
17for the purpose of subsequently transporting it outside this
18State for use or consumption thereafter solely outside this
19State or (ii) for the purpose of being processed, fabricated,
20or manufactured into, attached to, or incorporated into other
21tangible personal property to be transported outside this
22State and thereafter used or consumed solely outside this
23State. The Director of Revenue shall, pursuant to rules
24adopted in accordance with the Illinois Administrative
25Procedure Act, issue a permit to any taxpayer in good standing
26with the Department who is eligible for the exemption under

 

 

HB4040- 120 -LRB103 31628 HLH 60767 b

1this paragraph (26). The permit issued under this paragraph
2(26) shall authorize the holder, to the extent and in the
3manner specified in the rules adopted under this Act, to
4purchase tangible personal property from a retailer exempt
5from the taxes imposed by this Act. Taxpayers shall maintain
6all necessary books and records to substantiate the use and
7consumption of all such tangible personal property outside of
8the State of Illinois.
9    (27) Beginning January 1, 2008, tangible personal property
10used in the construction or maintenance of a community water
11supply, as defined under Section 3.145 of the Environmental
12Protection Act, that is operated by a not-for-profit
13corporation that holds a valid water supply permit issued
14under Title IV of the Environmental Protection Act. This
15paragraph is exempt from the provisions of Section 3-55.
16    (28) Tangible personal property sold to a
17public-facilities corporation, as described in Section
1811-65-10 of the Illinois Municipal Code, for purposes of
19constructing or furnishing a municipal convention hall, but
20only if the legal title to the municipal convention hall is
21transferred to the municipality without any further
22consideration by or on behalf of the municipality at the time
23of the completion of the municipal convention hall or upon the
24retirement or redemption of any bonds or other debt
25instruments issued by the public-facilities corporation in
26connection with the development of the municipal convention

 

 

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1hall. This exemption includes existing public-facilities
2corporations as provided in Section 11-65-25 of the Illinois
3Municipal Code. This paragraph is exempt from the provisions
4of Section 3-55.
5    (29) Beginning January 1, 2010 and continuing through
6December 31, 2024, materials, parts, equipment, components,
7and furnishings incorporated into or upon an aircraft as part
8of the modification, refurbishment, completion, replacement,
9repair, or maintenance of the aircraft. This exemption
10includes consumable supplies used in the modification,
11refurbishment, completion, replacement, repair, and
12maintenance of aircraft, but excludes any materials, parts,
13equipment, components, and consumable supplies used in the
14modification, replacement, repair, and maintenance of aircraft
15engines or power plants, whether such engines or power plants
16are installed or uninstalled upon any such aircraft.
17"Consumable supplies" include, but are not limited to,
18adhesive, tape, sandpaper, general purpose lubricants,
19cleaning solution, latex gloves, and protective films. This
20exemption applies only to the transfer of qualifying tangible
21personal property incident to the modification, refurbishment,
22completion, replacement, repair, or maintenance of an aircraft
23by persons who (i) hold an Air Agency Certificate and are
24empowered to operate an approved repair station by the Federal
25Aviation Administration, (ii) have a Class IV Rating, and
26(iii) conduct operations in accordance with Part 145 of the

 

 

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1Federal Aviation Regulations. The exemption does not include
2aircraft operated by a commercial air carrier providing
3scheduled passenger air service pursuant to authority issued
4under Part 121 or Part 129 of the Federal Aviation
5Regulations. The changes made to this paragraph (29) by Public
6Act 98-534 are declarative of existing law. It is the intent of
7the General Assembly that the exemption under this paragraph
8(29) applies continuously from January 1, 2010 through
9December 31, 2024; however, no claim for credit or refund is
10allowed for taxes paid as a result of the disallowance of this
11exemption on or after January 1, 2015 and prior to February 5,
122020 (the effective date of Public Act 101-629) this
13amendatory Act of the 101st General Assembly.
14    (30) Beginning January 1, 2017 and through December 31,
152026, menstrual pads, tampons, and menstrual cups.
16    (31) Tangible personal property transferred to a purchaser
17who is exempt from tax by operation of federal law. This
18paragraph is exempt from the provisions of Section 3-55.
19    (32) Qualified tangible personal property used in the
20construction or operation of a data center that has been
21granted a certificate of exemption by the Department of
22Commerce and Economic Opportunity, whether that tangible
23personal property is purchased by the owner, operator, or
24tenant of the data center or by a contractor or subcontractor
25of the owner, operator, or tenant. Data centers that would
26have qualified for a certificate of exemption prior to January

 

 

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11, 2020 had Public Act 101-31 this amendatory Act of the 101st
2General Assembly been in effect, may apply for and obtain an
3exemption for subsequent purchases of computer equipment or
4enabling software purchased or leased to upgrade, supplement,
5or replace computer equipment or enabling software purchased
6or leased in the original investment that would have
7qualified.
8    The Department of Commerce and Economic Opportunity shall
9grant a certificate of exemption under this item (32) to
10qualified data centers as defined by Section 605-1025 of the
11Department of Commerce and Economic Opportunity Law of the
12Civil Administrative Code of Illinois.
13    For the purposes of this item (32):
14        "Data center" means a building or a series of
15    buildings rehabilitated or constructed to house working
16    servers in one physical location or multiple sites within
17    the State of Illinois.
18        "Qualified tangible personal property" means:
19    electrical systems and equipment; climate control and
20    chilling equipment and systems; mechanical systems and
21    equipment; monitoring and secure systems; emergency
22    generators; hardware; computers; servers; data storage
23    devices; network connectivity equipment; racks; cabinets;
24    telecommunications cabling infrastructure; raised floor
25    systems; peripheral components or systems; software;
26    mechanical, electrical, or plumbing systems; battery

 

 

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1    systems; cooling systems and towers; temperature control
2    systems; other cabling; and other data center
3    infrastructure equipment and systems necessary to operate
4    qualified tangible personal property, including fixtures;
5    and component parts of any of the foregoing, including
6    installation, maintenance, repair, refurbishment, and
7    replacement of qualified tangible personal property to
8    generate, transform, transmit, distribute, or manage
9    electricity necessary to operate qualified tangible
10    personal property; and all other tangible personal
11    property that is essential to the operations of a computer
12    data center. The term "qualified tangible personal
13    property" also includes building materials physically
14    incorporated in to the qualifying data center. To document
15    the exemption allowed under this Section, the retailer
16    must obtain from the purchaser a copy of the certificate
17    of eligibility issued by the Department of Commerce and
18    Economic Opportunity.
19    This item (32) is exempt from the provisions of Section
203-55.
21    (33) Beginning July 1, 2022, breast pumps, breast pump
22collection and storage supplies, and breast pump kits. This
23item (33) is exempt from the provisions of Section 3-55. As
24used in this item (33):
25        "Breast pump" means an electrically controlled or
26    manually controlled pump device designed or marketed to be

 

 

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

 

 

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1    breasts or nipples, unless sold as part of a breast pump
2    kit that is pre-packaged by the breast pump manufacturer
3    or distributor.
4        "Breast pump kit" means a kit that: (1) contains no
5    more than a breast pump, breast pump collection and
6    storage supplies, a rechargeable battery for operating the
7    breast pump, a breastmilk cooler, bottle stands, ice
8    packs, and a breast pump carrying case; and (2) is
9    pre-packaged as a breast pump kit by the breast pump
10    manufacturer or distributor.
11    (34) (33) Tangible personal property sold by or on behalf
12of the State Treasurer pursuant to the Revised Uniform
13Unclaimed Property Act. This item (34) (33) is exempt from the
14provisions of Section 3-55.
15    (35) Qualified tangible personal property used in the
16construction or operation of a megaproject for which a
17certificate has been issued by the Department of Revenue as
18described and defined in Division 22 of Article 10 of the
19Property Tax Code, whether that tangible personal property is
20purchased by the owner, operator, or tenant of the megaproject
21or by a contractor or subcontractor of the owner, operator, or
22tenant.
23    For the purposes of this item (35):
24    "Megaproject" has the meaning ascribed to that term in
25Section 10-910 of the Property Tax Code.
26    "Qualified tangible personal property" means: electrical

 

 

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1systems and equipment; climate control and chilling equipment
2and systems; mechanical systems and equipment; monitoring and
3security systems; emergency generators; hardware; computers;
4servers; data storage devices; network connectivity equipment;
5racks; cabinets; telecommunications cabling infrastructure;
6raised floor systems; peripheral components or systems;
7software; mechanical, electrical, or plumbing systems; battery
8systems; cooling systems and towers; temperature control
9systems; other cabling; and other data center infrastructure
10equipment and systems necessary to operate qualified tangible
11personal property, including fixtures; and component parts of
12any of the foregoing, including installation, maintenance,
13repair, refurbishment, and replacement of qualified tangible
14personal property to generate, transform, transmit,
15distribute, or manage electricity necessary to operate
16qualified tangible personal property; and all other tangible
17personal property that is essential to the operations of a
18megaproject. The term "qualified tangible personal property"
19also includes building materials to be incorporated into the
20megaproject. To document the exemption allowed under this
21Section, the retailer, contractor or subcontractor or supplier
22must obtain from the purchaser a copy of the certificate
23issued by the Department of Revenue for the megaproject as
24described and defined in Division 22 of Article 10 of the
25Property Tax Code.
26    This item (35) is exempt from the provisions of Section

 

 

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13-55.
2(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
3101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
470, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
575-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
 
6    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
7    Sec. 9. Each serviceman required or authorized to collect
8the tax herein imposed shall pay to the Department the amount
9of such tax at the time when he is required to file his return
10for the period during which such tax was collectible, less a
11discount of 2.1% prior to January 1, 1990, and 1.75% on and
12after January 1, 1990, or $5 per calendar year, whichever is
13greater, which is allowed to reimburse the serviceman for
14expenses incurred in collecting the tax, keeping records,
15preparing and filing returns, remitting the tax and supplying
16data to the Department on request. When determining the
17discount allowed under this Section, servicemen shall include
18the amount of tax that would have been due at the 1% rate but
19for the 0% rate imposed under this amendatory Act of the 102nd
20General Assembly. The discount under this Section is not
21allowed for the 1.25% portion of taxes paid on aviation fuel
22that is subject to the revenue use requirements of 49 U.S.C.
2347107(b) and 49 U.S.C. 47133. The discount allowed under this
24Section is allowed only for returns that are filed in the
25manner required by this Act. The Department may disallow the

 

 

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1discount for servicemen whose certificate of registration is
2revoked at the time the return is filed, but only if the
3Department's decision to revoke the certificate of
4registration has become final.
5    Where such tangible personal property is sold under a
6conditional sales contract, or under any other form of sale
7wherein the payment of the principal sum, or a part thereof, is
8extended beyond the close of the period for which the return is
9filed, the serviceman, in collecting the tax may collect, for
10each tax return period, only the tax applicable to the part of
11the selling price actually received during such tax return
12period.
13    Except as provided hereinafter in this Section, on or
14before the twentieth day of each calendar month, such
15serviceman shall file a return for the preceding calendar
16month in accordance with reasonable rules and regulations to
17be promulgated by the Department of Revenue. Such return shall
18be filed on a form prescribed by the Department and shall
19contain such information as the Department may reasonably
20require. The return shall include the gross receipts which
21were received during the preceding calendar month or quarter
22on the following items upon which tax would have been due but
23for the 0% rate imposed under this amendatory Act of the 102nd
24General Assembly: (i) food for human consumption that is to be
25consumed off the premises where it is sold (other than
26alcoholic beverages, food consisting of or infused with adult

 

 

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

 

 

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

 

 

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1in the manner and form required by the Department. For
2purposes of this Section, "aviation fuel" means jet fuel and
3aviation gasoline.
4    If a taxpayer fails to sign a return within 30 days after
5the proper notice and demand for signature by the Department,
6the return shall be considered valid and any amount shown to be
7due on the return shall be deemed assessed.
8    Notwithstanding any other provision of this Act to the
9contrary, servicemen subject to tax on cannabis shall file all
10cannabis tax returns and shall make all cannabis tax payments
11by electronic means in the manner and form required by the
12Department.
13    Prior to October 1, 2003, and on and after September 1,
142004 a serviceman may accept a Manufacturer's Purchase Credit
15certification from a purchaser in satisfaction of Service Use
16Tax as provided in Section 3-70 of the Service Use Tax Act if
17the purchaser provides the appropriate documentation as
18required by Section 3-70 of the Service Use Tax Act. A
19Manufacturer's Purchase Credit certification, accepted prior
20to October 1, 2003 or on or after September 1, 2004 by a
21serviceman as provided in Section 3-70 of the Service Use Tax
22Act, may be used by that serviceman to satisfy Service
23Occupation Tax liability in the amount claimed in the
24certification, not to exceed 6.25% of the receipts subject to
25tax from a qualifying purchase. A Manufacturer's Purchase
26Credit reported on any original or amended return filed under

 

 

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1this Act after October 20, 2003 for reporting periods prior to
2September 1, 2004 shall be disallowed. Manufacturer's Purchase
3Credit reported on annual returns due on or after January 1,
42005 will be disallowed for periods prior to September 1,
52004. No Manufacturer's Purchase Credit may be used after
6September 30, 2003 through August 31, 2004 to satisfy any tax
7liability imposed under this Act, including any audit
8liability.
9    If the serviceman's average monthly tax liability to the
10Department does not exceed $200, the Department may authorize
11his returns to be filed on a quarter annual basis, with the
12return for January, February and March of a given year being
13due by April 20 of such year; with the return for April, May
14and June of a given year being due by July 20 of such year;
15with the return for July, August and September of a given year
16being due by October 20 of such year, and with the return for
17October, November and December of a given year being due by
18January 20 of the following year.
19    If the serviceman's average monthly tax liability to the
20Department does not exceed $50, the Department may authorize
21his returns to be filed on an annual basis, with the return for
22a given year being due by January 20 of 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

 

 

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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    Beginning October 1, 1993, a taxpayer who has an average
8monthly tax liability of $150,000 or more shall make all
9payments required by rules of the Department by electronic
10funds transfer. Beginning October 1, 1994, a taxpayer who has
11an average monthly tax liability of $100,000 or more shall
12make all payments required by rules of the Department by
13electronic funds transfer. Beginning October 1, 1995, a
14taxpayer who has an average monthly tax liability of $50,000
15or more shall make all payments required by rules of the
16Department by electronic funds transfer. Beginning October 1,
172000, a taxpayer who has an annual tax liability of $200,000 or
18more shall make all payments required by rules of the
19Department by electronic funds transfer. The term "annual tax
20liability" shall be the sum of the taxpayer's liabilities
21under this Act, and under all other State and local occupation
22and use tax laws administered by the Department, for the
23immediately preceding calendar year. The term "average monthly
24tax liability" means the sum of the taxpayer's liabilities
25under this Act, and under all other State and local occupation
26and use tax laws administered by the Department, for the

 

 

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1immediately preceding calendar year divided by 12. Beginning
2on October 1, 2002, a taxpayer who has a tax liability in the
3amount set forth in subsection (b) of Section 2505-210 of the
4Department of Revenue Law shall make all payments required by
5rules of the Department by electronic funds transfer.
6    Before August 1 of each year beginning in 1993, the
7Department shall notify all taxpayers required to make
8payments by electronic funds transfer. All taxpayers required
9to make payments by electronic funds transfer shall make those
10payments for a minimum of one year beginning on October 1.
11    Any taxpayer not required to make payments by electronic
12funds transfer may make payments by electronic funds transfer
13with the permission of the Department.
14    All taxpayers required to make payment by electronic funds
15transfer and any taxpayers authorized to voluntarily make
16payments by electronic funds transfer shall make those
17payments in the manner authorized by the Department.
18    The Department shall adopt such rules as are necessary to
19effectuate a program of electronic funds transfer and the
20requirements of this Section.
21    Where a serviceman collects the tax with respect to the
22selling price of tangible personal property which he sells and
23the purchaser thereafter returns such tangible personal
24property and the serviceman refunds the selling price thereof
25to the purchaser, such serviceman shall also refund, to the
26purchaser, the tax so collected from the purchaser. When

 

 

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

 

 

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1this Act from persons located within the Arlington Megaproject
2shall be deposited into the Arlington Megaproject
3Infrastructure Fund.
4    Beginning January 1, 1990, each month the Department shall
5pay into the Local Government Tax Fund the revenue realized
6for the preceding month from the 1% tax imposed under this Act.
7    Beginning January 1, 1990, each month the Department shall
8pay into the County and Mass Transit District Fund 4% of the
9revenue realized for the preceding month from the 6.25%
10general rate on sales of tangible personal property other than
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    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.
19    Beginning January 1, 1990, each month the Department shall
20pay into the Local Government Tax Fund 16% of the revenue
21realized for the preceding month from the 6.25% general rate
22on transfers of tangible personal property other than aviation
23fuel sold on or after December 1, 2019. This exception for
24aviation fuel only applies for so long as the revenue use
25requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
26binding on the State.

 

 

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1    For aviation fuel sold on or after December 1, 2019, each
2month the Department shall pay into the State Aviation Program
3Fund 20% of the net revenue realized for the preceding month
4from the 6.25% general rate on the selling price of aviation
5fuel, less an amount estimated by the Department to be
6required for refunds of the 20% portion of the tax on aviation
7fuel under this Act, which amount shall be deposited into the
8Aviation Fuel Sales Tax Refund Fund. The Department shall only
9pay moneys into the State Aviation Program Fund and the
10Aviation Fuel Sales Tax Refund Fund under this Act for so long
11as the revenue use requirements of 49 U.S.C. 47107(b) and 49
12U.S.C. 47133 are binding on the State.
13    Beginning August 1, 2000, each month the Department shall
14pay into the Local Government Tax Fund 80% of the net revenue
15realized for the preceding month from the 1.25% rate on the
16selling price of motor fuel and gasohol.
17    Beginning October 1, 2009, each month the Department shall
18pay into the Capital Projects Fund an amount that is equal to
19an amount estimated by the Department to represent 80% of the
20net revenue realized for the preceding month from the sale of
21candy, grooming and hygiene products, and soft drinks that had
22been taxed at a rate of 1% prior to September 1, 2009 but that
23are now taxed at 6.25%.
24    Beginning July 1, 2013, each month the Department shall
25pay into the Underground Storage Tank Fund from the proceeds
26collected under this Act, the Use Tax Act, the Service Use Tax

 

 

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

 

 

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

 

 

HB4040- 141 -LRB103 31628 HLH 60767 b

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

 

 

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1of the preceding sentence. The moneys received by the
2Department pursuant to this Act and required to be deposited
3into the Build Illinois Fund are subject to the pledge, claim
4and charge set forth in Section 12 of the Build Illinois Bond
5Act.
6    Subject to payment of amounts into the Build Illinois Fund
7as provided in the preceding paragraph or in any amendment
8thereto hereafter enacted, the following specified monthly
9installment of the amount requested in the certificate of the
10Chairman of the Metropolitan Pier and Exposition Authority
11provided under Section 8.25f of the State Finance Act, but not
12in excess of the sums designated as "Total Deposit", shall be
13deposited in the aggregate from collections under Section 9 of
14the Use Tax Act, Section 9 of the Service Use Tax Act, Section
159 of the Service Occupation Tax Act, and Section 3 of the
16Retailers' Occupation Tax Act into the McCormick Place
17Expansion Project Fund in the specified fiscal years.
 
18Fiscal YearTotal Deposit
191993         $0
201994 53,000,000
211995 58,000,000
221996 61,000,000
231997 64,000,000
241998 68,000,000
251999 71,000,000

 

 

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12000 75,000,000
22001 80,000,000
32002 93,000,000
42003 99,000,000
52004103,000,000
62005108,000,000
72006113,000,000
82007119,000,000
92008126,000,000
102009132,000,000
112010139,000,000
122011146,000,000
132012153,000,000
142013161,000,000
152014170,000,000
162015179,000,000
172016189,000,000
182017199,000,000
192018210,000,000
202019221,000,000
212020233,000,000
222021300,000,000
232022300,000,000
242023300,000,000
252024 300,000,000
262025 300,000,000

 

 

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12026 300,000,000
22027 375,000,000
32028 375,000,000
42029 375,000,000
52030 375,000,000
62031 375,000,000
72032 375,000,000
82033 375,000,000
92034375,000,000
102035375,000,000
112036450,000,000
12and
13each fiscal year
14thereafter that bonds
15are outstanding under
16Section 13.2 of the
17Metropolitan Pier and
18Exposition Authority Act,
19but not after fiscal year 2060.
20    Beginning July 20, 1993 and in each month of each fiscal
21year thereafter, one-eighth of the amount requested in the
22certificate of the Chairman of the Metropolitan Pier and
23Exposition Authority for that fiscal year, less the amount
24deposited into the McCormick Place Expansion Project Fund by
25the State Treasurer in the respective month under subsection
26(g) of Section 13 of the Metropolitan Pier and Exposition

 

 

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1Authority Act, plus cumulative deficiencies in the deposits
2required under this Section for previous months and years,
3shall be deposited into the McCormick Place Expansion Project
4Fund, until the full amount requested for the fiscal year, but
5not in excess of the amount specified above as "Total
6Deposit", has been deposited.
7    Subject to payment of amounts into the Capital Projects
8Fund, the Build Illinois Fund, and the McCormick Place
9Expansion Project Fund pursuant to the preceding paragraphs or
10in any amendments thereto hereafter enacted, for aviation fuel
11sold on or after December 1, 2019, the Department shall each
12month deposit into the Aviation Fuel Sales Tax Refund Fund an
13amount estimated by the Department to be required for refunds
14of the 80% portion of the tax on aviation fuel under this Act.
15The Department shall only deposit moneys into the Aviation
16Fuel Sales Tax Refund Fund under this paragraph for so long as
17the revenue use requirements of 49 U.S.C. 47107(b) and 49
18U.S.C. 47133 are binding on the State.
19    Subject to payment of amounts into the Build Illinois Fund
20and the McCormick Place Expansion Project Fund pursuant to the
21preceding paragraphs or in any amendments thereto hereafter
22enacted, beginning July 1, 1993 and ending on September 30,
232013, the Department shall each month pay into the Illinois
24Tax Increment Fund 0.27% of 80% of the net revenue realized for
25the preceding month from the 6.25% general rate on the selling
26price of tangible personal property.

 

 

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

 

 

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1Department of Revenue, an amount equal to 1/12 of 5% of 80% of
2the cash receipts collected during the preceding fiscal year
3by the Audit Bureau of the Department under the Use Tax Act,
4the Service Use Tax Act, the Service Occupation Tax Act, the
5Retailers' Occupation Tax Act, and associated local occupation
6and use taxes administered by the Department.
7    Subject to payments of amounts into the Build Illinois
8Fund, the McCormick Place Expansion Project Fund, the Illinois
9Tax Increment Fund, the Energy Infrastructure Fund, and the
10Tax Compliance and Administration Fund as provided in this
11Section, beginning on July 1, 2018 the Department shall pay
12each month into the Downstate Public Transportation Fund the
13moneys required to be so paid under Section 2-3 of the
14Downstate Public Transportation Act.
15    Subject to successful execution and delivery of a
16public-private agreement between the public agency and private
17entity and completion of the civic build, beginning on July 1,
182023, of the remainder of the moneys received by the
19Department under the Use Tax Act, the Service Use Tax Act, the
20Service Occupation Tax Act, and this Act, the Department shall
21deposit the following specified deposits in the aggregate from
22collections under the Use Tax Act, the Service Use Tax Act, the
23Service Occupation Tax Act, and the Retailers' Occupation Tax
24Act, as required under Section 8.25g of the State Finance Act
25for distribution consistent with the Public-Private
26Partnership for Civic and Transit Infrastructure Project Act.

 

 

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

 

 

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

 

 

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1Expansion Project Fund, the Illinois Tax Increment Fund, the
2Energy Infrastructure Fund, and the Tax Compliance and
3Administration Fund as provided in this Section, the
4Department shall pay each month into the Road Fund the amount
5estimated to represent 48% of the net revenue realized from
6the taxes imposed on motor fuel and gasohol. Beginning July 1,
72024 and until July 1, 2025, subject to the payment of amounts
8into the County and Mass Transit District Fund, the Local
9Government Tax Fund, the Build Illinois Fund, the McCormick
10Place Expansion Project Fund, the Illinois Tax Increment Fund,
11the Energy Infrastructure Fund, and the Tax Compliance and
12Administration Fund as provided in this Section, the
13Department shall pay each month into the Road Fund the amount
14estimated to represent 64% of the net revenue realized from
15the taxes imposed on motor fuel and gasohol. Beginning on July
161, 2025, subject to the payment of amounts into the County and
17Mass Transit District Fund, the Local Government Tax Fund, the
18Build Illinois Fund, the McCormick Place Expansion Project
19Fund, the Illinois Tax Increment Fund, the Energy
20Infrastructure Fund, and the Tax Compliance and Administration
21Fund as provided in this Section, the Department shall pay
22each month into the Road Fund the amount estimated to
23represent 80% of the net revenue realized from the taxes
24imposed on motor fuel and gasohol. As used in this paragraph
25"motor fuel" has the meaning given to that term in Section 1.1
26of the Motor Fuel Tax Law, and "gasohol" has the meaning given

 

 

HB4040- 151 -LRB103 31628 HLH 60767 b

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

 

 

HB4040- 152 -LRB103 31628 HLH 60767 b

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

 

 

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1    The foregoing portion of this Section concerning the
2filing of an annual information return shall not apply to a
3serviceman who is not required to file an income tax return
4with the United States Government.
5    As soon as possible after the first day of each month, upon
6certification of the Department of Revenue, the Comptroller
7shall order transferred and the Treasurer shall transfer from
8the General Revenue Fund to the Motor Fuel Tax Fund an amount
9equal to 1.7% of 80% of the net revenue realized under this Act
10for the second preceding month. Beginning April 1, 2000, this
11transfer is no longer required and shall not be made.
12    Net revenue realized for a month shall be the revenue
13collected by the State pursuant to this Act, less the amount
14paid out during that month as refunds to taxpayers for
15overpayment of liability.
16    For greater simplicity of administration, it shall be
17permissible for manufacturers, importers and wholesalers whose
18products are sold by numerous servicemen in Illinois, and who
19wish to do so, to assume the responsibility for accounting and
20paying to the Department all tax accruing under this Act with
21respect to such sales, if the servicemen who are affected do
22not make written objection to the Department to this
23arrangement.
24(Source: P.A. 101-10, Article 15, Section 15-20, eff. 6-5-19;
25101-10, Article 25, Section 25-115, eff. 6-5-19; 101-27, eff.
266-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;

 

 

HB4040- 154 -LRB103 31628 HLH 60767 b

1101-636, eff. 6-10-20; 102-700, eff. 4-19-22.)
 
2    Section 920. The Retailers' Occupation Tax Act is amended
3by changing Sections 2-5 and 3 as follows:
 
4    (35 ILCS 120/2-5)
5    Sec. 2-5. Exemptions. Gross receipts from proceeds from
6the sale of the following tangible personal property are
7exempt from the tax imposed by this Act:
8        (1) Farm chemicals.
9        (2) Farm machinery and equipment, both new and used,
10    including that manufactured on special order, certified by
11    the purchaser to be used primarily for production
12    agriculture or State or federal agricultural programs,
13    including individual replacement parts for the machinery
14    and equipment, including machinery and equipment purchased
15    for lease, and including implements of husbandry defined
16    in Section 1-130 of the Illinois Vehicle Code, farm
17    machinery and agricultural chemical and fertilizer
18    spreaders, and nurse wagons required to be registered
19    under Section 3-809 of the Illinois Vehicle Code, but
20    excluding other motor vehicles required to be registered
21    under the Illinois Vehicle Code. Horticultural polyhouses
22    or hoop houses used for propagating, growing, or
23    overwintering plants shall be considered farm machinery
24    and equipment under this item (2). Agricultural chemical

 

 

HB4040- 155 -LRB103 31628 HLH 60767 b

1    tender tanks and dry boxes shall include units sold
2    separately from a motor vehicle required to be licensed
3    and units sold mounted on a motor vehicle required to be
4    licensed, if the selling price of the tender is separately
5    stated.
6        Farm machinery and equipment shall include precision
7    farming equipment that is installed or purchased to be
8    installed on farm machinery and equipment including, but
9    not limited to, tractors, harvesters, sprayers, planters,
10    seeders, or spreaders. Precision farming equipment
11    includes, but is not limited to, soil testing sensors,
12    computers, monitors, software, global positioning and
13    mapping systems, and other such equipment.
14        Farm machinery and equipment also includes computers,
15    sensors, software, and related equipment used primarily in
16    the computer-assisted operation of production agriculture
17    facilities, equipment, and activities such as, but not
18    limited to, the collection, monitoring, and correlation of
19    animal and crop data for the purpose of formulating animal
20    diets and agricultural chemicals. This item (2) is exempt
21    from the provisions of Section 2-70.
22        (3) Until July 1, 2003, distillation machinery and
23    equipment, sold as a unit or kit, assembled or installed
24    by the retailer, certified by the user to be used only for
25    the production of ethyl alcohol that will be used for
26    consumption as motor fuel or as a component of motor fuel

 

 

HB4040- 156 -LRB103 31628 HLH 60767 b

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

 

 

HB4040- 157 -LRB103 31628 HLH 60767 b

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

 

 

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

 

 

HB4040- 159 -LRB103 31628 HLH 60767 b

1    and replacement parts added after the initial purchase of
2    such a motor vehicle if that motor vehicle is used in a
3    manner that would qualify for the rolling stock exemption
4    otherwise provided for in this Act. For purposes of this
5    paragraph, "used for commercial purposes" means the
6    transportation of persons or property in furtherance of
7    any commercial or industrial enterprise whether for-hire
8    or not.
9        (13) Proceeds from sales to owners, lessors, or
10    shippers of tangible personal property that is utilized by
11    interstate carriers for hire for use as rolling stock
12    moving in interstate commerce and equipment operated by a
13    telecommunications provider, licensed as a common carrier
14    by the Federal Communications Commission, which is
15    permanently installed in or affixed to aircraft moving in
16    interstate commerce.
17        (14) Machinery and equipment that will be used by the
18    purchaser, or a lessee of the purchaser, primarily in the
19    process of manufacturing or assembling tangible personal
20    property for wholesale or retail sale or lease, whether
21    the sale or lease is made directly by the manufacturer or
22    by some other person, whether the materials used in the
23    process are owned by the manufacturer or some other
24    person, or whether the sale or lease is made apart from or
25    as an incident to the seller's engaging in the service
26    occupation of producing machines, tools, dies, jigs,

 

 

HB4040- 160 -LRB103 31628 HLH 60767 b

1    patterns, gauges, or other similar items of no commercial
2    value on special order for a particular purchaser. The
3    exemption provided by this paragraph (14) does not include
4    machinery and equipment used in (i) the generation of
5    electricity for wholesale or retail sale; (ii) the
6    generation or treatment of natural or artificial gas for
7    wholesale or retail sale that is delivered to customers
8    through pipes, pipelines, or mains; or (iii) the treatment
9    of water for wholesale or retail sale that is delivered to
10    customers through pipes, pipelines, or mains. The
11    provisions of Public Act 98-583 are declaratory of
12    existing law as to the meaning and scope of this
13    exemption. Beginning on July 1, 2017, the exemption
14    provided by this paragraph (14) includes, but is not
15    limited to, graphic arts machinery and equipment, as
16    defined in paragraph (4) of this Section.
17        (15) Proceeds of mandatory service charges separately
18    stated on customers' bills for purchase and consumption of
19    food and beverages, to the extent that the proceeds of the
20    service charge are in fact turned over as tips or as a
21    substitute for tips to the employees who participate
22    directly in preparing, serving, hosting or cleaning up the
23    food or beverage function with respect to which the
24    service charge is imposed.
25        (16) Tangible personal property sold to a purchaser if
26    the purchaser is exempt from use tax by operation of

 

 

HB4040- 161 -LRB103 31628 HLH 60767 b

1    federal law. This paragraph is exempt from the provisions
2    of Section 2-70.
3        (17) Tangible personal property sold to a common
4    carrier by rail or motor that receives the physical
5    possession of the property in Illinois and that transports
6    the property, or shares with another common carrier in the
7    transportation of the property, out of Illinois on a
8    standard uniform bill of lading showing the seller of the
9    property as the shipper or consignor of the property to a
10    destination outside Illinois, for use outside Illinois.
11        (18) Legal tender, currency, medallions, or gold or
12    silver coinage issued by the State of Illinois, the
13    government of the United States of America, or the
14    government of any foreign country, and bullion.
15        (19) Until July 1, 2003, oil field exploration,
16    drilling, and production equipment, including (i) rigs and
17    parts of rigs, rotary rigs, cable tool rigs, and workover
18    rigs, (ii) pipe and tubular goods, including casing and
19    drill strings, (iii) pumps and pump-jack units, (iv)
20    storage tanks and flow lines, (v) any individual
21    replacement part for oil field exploration, drilling, and
22    production equipment, and (vi) machinery and equipment
23    purchased for lease; but excluding motor vehicles required
24    to be registered under the Illinois Vehicle Code.
25        (20) Photoprocessing machinery and equipment,
26    including repair and replacement parts, both new and used,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    purposes of breeding or racing for prizes. This item (27)
2    is exempt from the provisions of Section 2-70, and the
3    exemption provided for under this item (27) applies for
4    all periods beginning May 30, 1995, but no claim for
5    credit or refund is allowed on or after January 1, 2008
6    (the effective date of Public Act 95-88) for such taxes
7    paid during the period beginning May 30, 2000 and ending
8    on January 1, 2008 (the effective date of Public Act
9    95-88).
10        (28) Computers and communications equipment utilized
11    for any hospital purpose and equipment used in the
12    diagnosis, analysis, or treatment of hospital patients
13    sold to a lessor who leases the equipment, under a lease of
14    one year or longer executed or in effect at the time of the
15    purchase, to a hospital that has been issued an active tax
16    exemption identification number by the Department under
17    Section 1g of this Act.
18        (29) Personal property sold to a lessor who leases the
19    property, under a lease of one year or longer executed or
20    in effect at the time of the purchase, to a governmental
21    body that has been issued an active tax exemption
22    identification number by the Department under Section 1g
23    of this Act.
24        (30) Beginning with taxable years ending on or after
25    December 31, 1995 and ending with taxable years ending on
26    or before December 31, 2004, personal property that is

 

 

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

 

 

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1    Section 1-146 of the Illinois Vehicle Code, that is
2    donated to a corporation, limited liability company,
3    society, association, foundation, or institution that is
4    determined by the Department to be organized and operated
5    exclusively for educational purposes. For purposes of this
6    exemption, "a corporation, limited liability company,
7    society, association, foundation, or institution organized
8    and operated exclusively for educational purposes" means
9    all tax-supported public schools, private schools that
10    offer systematic instruction in useful branches of
11    learning by methods common to public schools and that
12    compare favorably in their scope and intensity with the
13    course of study presented in tax-supported schools, and
14    vocational or technical schools or institutes organized
15    and operated exclusively to provide a course of study of
16    not less than 6 weeks duration and designed to prepare
17    individuals to follow a trade or to pursue a manual,
18    technical, mechanical, industrial, business, or commercial
19    occupation.
20        (34) Beginning January 1, 2000, personal property,
21    including food, purchased through fundraising events for
22    the benefit of a public or private elementary or secondary
23    school, a group of those schools, or one or more school
24    districts if the events are sponsored by an entity
25    recognized by the school district that consists primarily
26    of volunteers and includes parents and teachers of the

 

 

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1    school children. This paragraph does not apply to
2    fundraising events (i) for the benefit of private home
3    instruction or (ii) for which the fundraising entity
4    purchases the personal property sold at the events from
5    another individual or entity that sold the property for
6    the purpose of resale by the fundraising entity and that
7    profits from the sale to the fundraising entity. This
8    paragraph is exempt from the provisions of Section 2-70.
9        (35) Beginning January 1, 2000 and through December
10    31, 2001, new or used automatic vending machines that
11    prepare and serve hot food and beverages, including
12    coffee, soup, and other items, and replacement parts for
13    these machines. Beginning January 1, 2002 and through June
14    30, 2003, machines and parts for machines used in
15    commercial, coin-operated amusement and vending business
16    if a use or occupation tax is paid on the gross receipts
17    derived from the use of the commercial, coin-operated
18    amusement and vending machines. This paragraph is exempt
19    from the provisions of Section 2-70.
20        (35-5) Beginning August 23, 2001 and through June 30,
21    2016, food for human consumption that is to be consumed
22    off the premises where it is sold (other than alcoholic
23    beverages, soft drinks, and food that has been prepared
24    for immediate consumption) and prescription and
25    nonprescription medicines, drugs, medical appliances, and
26    insulin, urine testing materials, syringes, and needles

 

 

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

 

 

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1    Illinois retailer by a taxpayer engaged in centralized
2    purchasing activities in Illinois who will, upon receipt
3    of the property in Illinois, temporarily store the
4    property in Illinois (i) for the purpose of subsequently
5    transporting it outside this State for use or consumption
6    thereafter solely outside this State or (ii) for the
7    purpose of being processed, fabricated, or manufactured
8    into, attached to, or incorporated into other tangible
9    personal property to be transported outside this State and
10    thereafter used or consumed solely outside this State. The
11    Director of Revenue shall, pursuant to rules adopted in
12    accordance with the Illinois Administrative Procedure Act,
13    issue a permit to any taxpayer in good standing with the
14    Department who is eligible for the exemption under this
15    paragraph (38). The permit issued under this paragraph
16    (38) shall authorize the holder, to the extent and in the
17    manner specified in the rules adopted under this Act, to
18    purchase tangible personal property from a retailer exempt
19    from the taxes imposed by this Act. Taxpayers shall
20    maintain all necessary books and records to substantiate
21    the use and consumption of all such tangible personal
22    property outside of the State of Illinois.
23        (39) Beginning January 1, 2008, tangible personal
24    property used in the construction or maintenance of a
25    community water supply, as defined under Section 3.145 of
26    the Environmental Protection Act, that is operated by a

 

 

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

 

 

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1    in accordance with Part 145 of the Federal Aviation
2    Regulations. The exemption does not include aircraft
3    operated by a commercial air carrier providing scheduled
4    passenger air service pursuant to authority issued under
5    Part 121 or Part 129 of the Federal Aviation Regulations.
6    The changes made to this paragraph (40) by Public Act
7    98-534 are declarative of existing law. It is the intent
8    of the General Assembly that the exemption under this
9    paragraph (40) applies continuously from January 1, 2010
10    through December 31, 2024; however, no claim for credit or
11    refund is allowed for taxes paid as a result of the
12    disallowance of this exemption on or after January 1, 2015
13    and prior to February 5, 2020 (the effective date of
14    Public Act 101-629) this amendatory Act of the 101st
15    General Assembly.
16        (41) Tangible personal property sold to a
17    public-facilities corporation, as described in Section
18    11-65-10 of the Illinois Municipal Code, for purposes of
19    constructing or furnishing a municipal convention hall,
20    but only if the legal title to the municipal convention
21    hall is transferred to the municipality without any
22    further consideration by or on behalf of the municipality
23    at the time of the completion of the municipal convention
24    hall or upon the retirement or redemption of any bonds or
25    other debt instruments issued by the public-facilities
26    corporation in connection with the development of the

 

 

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1    municipal convention hall. This exemption includes
2    existing public-facilities corporations as provided in
3    Section 11-65-25 of the Illinois Municipal Code. This
4    paragraph is exempt from the provisions of Section 2-70.
5        (42) Beginning January 1, 2017 and through December
6    31, 2026, menstrual pads, tampons, and menstrual cups.
7        (43) Merchandise that is subject to the Rental
8    Purchase Agreement Occupation and Use Tax. The purchaser
9    must certify that the item is purchased to be rented
10    subject to a rental purchase agreement, as defined in the
11    Rental Purchase Agreement Act, and provide proof of
12    registration under the Rental Purchase Agreement
13    Occupation and Use Tax Act. This paragraph is exempt from
14    the provisions of Section 2-70.
15        (44) Qualified tangible personal property used in the
16    construction or operation of a data center that has been
17    granted a certificate of exemption by the Department of
18    Commerce and Economic Opportunity, whether that tangible
19    personal property is purchased by the owner, operator, or
20    tenant of the data center or by a contractor or
21    subcontractor of the owner, operator, or tenant. Data
22    centers that would have qualified for a certificate of
23    exemption prior to January 1, 2020 had Public Act 101-31
24    this amendatory Act of the 101st General Assembly been in
25    effect, may apply for and obtain an exemption for
26    subsequent purchases of computer equipment or enabling

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        (47) (46) Tangible personal property sold by or on
2    behalf of the State Treasurer pursuant to the Revised
3    Uniform Unclaimed Property Act. This item (47) (46) is
4    exempt from the provisions of Section 2-70.
5        (48) Qualified tangible personal property used in the
6    construction or operation of a megaproject for which a
7    certificate has been issued by the Department of Revenue
8    as described and defined in Division 22 of Article 10 of
9    the Property Tax Code, whether that tangible personal
10    property is purchased by the owner, operator, or tenant of
11    the megaproject or by a contractor or subcontractor of the
12    owner, operator, or tenant. For the purposes of this item
13    (48):
14        "Megaproject" has the meaning ascribed to that term in
15    Section 10-910 of the Property Tax Code.
16        "Qualified tangible personal property" means:
17    electrical systems and equipment; climate control and
18    chilling equipment and systems; mechanical systems and
19    equipment; monitoring and security systems; emergency
20    generators; hardware; computers; servers; data storage
21    devices; network connectivity equipment; racks; cabinets;
22    telecommunications cabling infrastructure; raised floor
23    systems; peripheral components or systems; software;
24    mechanical, electrical, or plumbing systems; battery
25    systems; cooling systems and towers; temperature control
26    systems; other cabling; and other data center

 

 

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1    infrastructure equipment and systems necessary to operate
2    qualified tangible personal property, including fixtures;
3    and component parts of any of the foregoing, including
4    installation, maintenance, repair, refurbishment, and
5    replacement of qualified tangible personal property to
6    generate, transform, transmit, distribute, or manage
7    electricity necessary to operate qualified tangible
8    personal property; and all other tangible personal
9    property that is essential to the operations of a
10    megaproject. The term "qualified tangible personal
11    property" also includes building materials to be
12    incorporated into the megaproject. To document the
13    exemption allowed under this Section, the retailer,
14    contractor or subcontractor or supplier must obtain from
15    the purchaser a copy of the certificate issued by the
16    Department of Revenue for the megaproject as described and
17    defined in Division 22 of Article 10 of the Property Tax
18    Code.
19        This item (48) is exempt from the provisions of
20    Section 2-70.
21(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
22101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
238-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
24102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
25eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
 

 

 

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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
26    of which the tax is imposed, including gross receipts on

 

 

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

 

 

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1all returns required to be filed pursuant to this Act shall be
2filed electronically. On and after January 1, 2023, with
3respect to retailers whose annual gross receipts average
4$20,000 or more, all returns required to be filed pursuant to
5this Act, including, but not limited to, returns for motor
6vehicles, watercraft, aircraft, and trailers that are required
7to be registered with an agency of this State, shall be filed
8electronically. Retailers who demonstrate that they do not
9have access to the Internet or demonstrate hardship in filing
10electronically may petition the Department to waive the
11electronic filing requirement.
12    If a taxpayer fails to sign a return within 30 days after
13the proper notice and demand for signature by the Department,
14the return shall be considered valid and any amount shown to be
15due on the return shall be deemed assessed.
16    Each return shall be accompanied by the statement of
17prepaid tax issued pursuant to Section 2e for which credit is
18claimed.
19    Prior to October 1, 2003, and on and after September 1,
202004 a retailer may accept a Manufacturer's Purchase Credit
21certification from a purchaser in satisfaction of Use Tax as
22provided in Section 3-85 of the Use Tax Act if the purchaser
23provides the appropriate documentation as required by Section
243-85 of the Use Tax Act. A Manufacturer's Purchase Credit
25certification, accepted by a retailer prior to October 1, 2003
26and on and after September 1, 2004 as provided in Section 3-85

 

 

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1of the Use Tax Act, may be used by that retailer to satisfy
2Retailers' Occupation Tax liability in the amount claimed in
3the certification, not to exceed 6.25% of the receipts subject
4to tax 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    The Department may require returns to be filed on a
15quarterly basis. If so required, a return for each calendar
16quarter shall be filed on or before the twentieth day of the
17calendar month following the end of such calendar quarter. The
18taxpayer shall also file a return with the Department for each
19of the first two months of each calendar quarter, on or before
20the twentieth day of the following calendar month, stating:
21        1. The name of the seller;
22        2. The address of the principal place of business from
23    which he engages in the business of selling tangible
24    personal property at retail in this State;
25        3. The total amount of taxable receipts received by
26    him during the preceding calendar month from sales of

 

 

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

 

 

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

 

 

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

 

 

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1taxpayer who has an average monthly tax liability of $50,000
2or more shall make all payments required by rules of the
3Department by electronic funds transfer. Beginning October 1,
42000, a taxpayer who has an annual tax liability of $200,000 or
5more shall make all payments required by rules of the
6Department by electronic funds transfer. The term "annual tax
7liability" shall be the sum of the taxpayer's liabilities
8under this Act, and under all other State and local occupation
9and use tax laws administered by the Department, for the
10immediately preceding calendar year. The term "average monthly
11tax liability" shall be the sum of the taxpayer's liabilities
12under this Act, and under all other State and local occupation
13and use tax laws administered by the Department, for the
14immediately preceding calendar year divided by 12. Beginning
15on October 1, 2002, a taxpayer who has a tax liability in the
16amount set forth in subsection (b) of Section 2505-210 of the
17Department of Revenue Law shall make all payments required by
18rules of the Department by electronic funds transfer.
19    Before August 1 of each year beginning in 1993, the
20Department shall notify all taxpayers required to make
21payments by electronic funds transfer. All taxpayers required
22to make payments by electronic funds transfer shall make those
23payments for a minimum of one year beginning on October 1.
24    Any taxpayer not required to make payments by electronic
25funds transfer may make payments by electronic funds transfer
26with the permission of the Department.

 

 

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

 

 

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

 

 

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1prescribed and supplied by the Department, a separate return
2for each such item of tangible personal property which the
3retailer sells, except that if, in the same transaction, (i) a
4retailer of aircraft, watercraft, motor vehicles or trailers
5transfers more than one aircraft, watercraft, motor vehicle or
6trailer to another aircraft, watercraft, motor vehicle
7retailer or trailer retailer for the purpose of resale or (ii)
8a retailer of aircraft, watercraft, motor vehicles, or
9trailers transfers more than one aircraft, watercraft, motor
10vehicle, or trailer to a purchaser for use as a qualifying
11rolling stock as provided in Section 2-5 of this Act, then that
12seller may report the transfer of all aircraft, watercraft,
13motor vehicles or trailers involved in that transaction to the
14Department on the same uniform invoice-transaction reporting
15return form. For purposes of this Section, "watercraft" means
16a Class 2, Class 3, or Class 4 watercraft as defined in Section
173-2 of the Boat Registration and Safety Act, a personal
18watercraft, or any boat equipped with an inboard motor.
19    In addition, with respect to motor vehicles, watercraft,
20aircraft, and trailers that are required to be registered with
21an agency of this State, every person who is engaged in the
22business of leasing or renting such items and who, in
23connection with such business, sells any such item to a
24retailer for the purpose of resale is, notwithstanding any
25other provision of this Section to the contrary, authorized to
26meet the return-filing requirement of this Act by reporting

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1if the tax had been remitted to the Department by the retailer.
2    Refunds made by the seller during the preceding return
3period to purchasers, on account of tangible personal property
4returned to the seller, shall be allowed as a deduction under
5subdivision 5 of his monthly or quarterly return, as the case
6may be, in case the seller had theretofore included the
7receipts from the sale of such tangible personal property in a
8return filed by him and had paid the tax imposed by this Act
9with respect to such receipts.
10    Where the seller is a corporation, the return filed on
11behalf of such corporation shall be signed by the president,
12vice-president, secretary or treasurer or by the properly
13accredited agent of such corporation.
14    Where the seller is a limited liability company, the
15return filed on behalf of the limited liability company shall
16be signed by a manager, member, or properly accredited agent
17of the limited liability company.
18    Except as provided in this Section, the retailer filing
19the return under this Section shall, at the time of filing such
20return, pay to the Department the amount of tax imposed by this
21Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
22on and after January 1, 1990, or $5 per calendar year,
23whichever is greater, which is allowed to reimburse the
24retailer for the expenses incurred in keeping records,
25preparing and filing returns, remitting the tax and supplying
26data to the Department on request. On and after January 1,

 

 

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12021, a certified service provider, as defined in the Leveling
2the Playing Field for Illinois Retail Act, filing the return
3under this Section on behalf of a remote retailer shall, at the
4time of such return, pay to the Department the amount of tax
5imposed by this Act less a discount of 1.75%. A remote retailer
6using a certified service provider to file a return on its
7behalf, as provided in the Leveling the Playing Field for
8Illinois Retail Act, is not eligible for the discount. When
9determining the discount allowed under this Section, retailers
10shall include the amount of tax that would have been due at the
111% rate but for the 0% rate imposed under Public Act 102-700
12this amendatory Act of the 102nd General Assembly. When
13determining the discount allowed under this Section, retailers
14shall include the amount of tax that would have been due at the
156.25% rate but for the 1.25% rate imposed on sales tax holiday
16items under Public Act 102-700 this amendatory Act of the
17102nd General Assembly. The discount under this Section is not
18allowed for the 1.25% portion of taxes paid on aviation fuel
19that is subject to the revenue use requirements of 49 U.S.C.
2047107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to
21Section 2d of this Act shall be included in the amount on which
22such 2.1% or 1.75% discount is computed. In the case of
23retailers who report and pay the tax on a transaction by
24transaction basis, as provided in this Section, such discount
25shall be taken with each such tax remittance instead of when
26such retailer files his periodic return. The discount allowed

 

 

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1under this Section is allowed only for returns that are filed
2in the manner required by this Act. The Department may
3disallow the discount for retailers whose certificate of
4registration is revoked at the time the return is filed, but
5only if the Department's decision to revoke the certificate of
6registration has become final.
7    Before October 1, 2000, if the taxpayer's average monthly
8tax liability to the Department under this Act, the Use Tax
9Act, the Service Occupation Tax Act, and the Service Use Tax
10Act, excluding any liability for prepaid sales tax to be
11remitted in accordance with Section 2d of this Act, was
12$10,000 or more during the preceding 4 complete calendar
13quarters, he shall file a return with the Department each
14month by the 20th day of the month next following the month
15during which such tax liability is incurred and shall make
16payments to the Department on or before the 7th, 15th, 22nd and
17last day of the month during which such liability is incurred.
18On and after October 1, 2000, if the taxpayer's average
19monthly tax liability to the Department under this Act, the
20Use Tax Act, the Service Occupation Tax Act, and the Service
21Use Tax Act, excluding any liability for prepaid sales tax to
22be remitted in accordance with Section 2d of this Act, was
23$20,000 or more during the preceding 4 complete calendar
24quarters, he shall file a return with the Department each
25month by the 20th day of the month next following the month
26during which such tax liability is incurred and shall make

 

 

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1payment to the Department on or before the 7th, 15th, 22nd and
2last day of the month during which such liability is incurred.
3If the month during which such tax liability is incurred began
4prior to January 1, 1985, each payment shall be in an amount
5equal to 1/4 of the taxpayer's actual liability for the month
6or an amount set by the Department not to exceed 1/4 of the
7average monthly liability of the taxpayer to the Department
8for the preceding 4 complete calendar quarters (excluding the
9month of highest liability and the month of lowest liability
10in such 4 quarter period). If the month during which such tax
11liability is incurred begins on or after January 1, 1985 and
12prior to January 1, 1987, each payment shall be in an amount
13equal to 22.5% of the taxpayer's actual liability for the
14month or 27.5% of the taxpayer's liability for the same
15calendar month of the preceding year. If the month during
16which such tax liability is incurred begins on or after
17January 1, 1987 and prior to January 1, 1988, each payment
18shall be in an amount equal to 22.5% of the taxpayer's actual
19liability for the month or 26.25% of the taxpayer's liability
20for the same calendar month of the preceding year. If the month
21during which such tax liability is incurred begins on or after
22January 1, 1988, and prior to January 1, 1989, or begins on or
23after January 1, 1996, each payment shall be in an amount equal
24to 22.5% of the taxpayer's actual liability for the month or
2525% of the taxpayer's liability for the same calendar month of
26the preceding year. If the month during which such tax

 

 

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1liability is incurred begins on or after January 1, 1989, and
2prior to January 1, 1996, each payment shall be in an amount
3equal to 22.5% of the taxpayer's actual liability for the
4month or 25% of the taxpayer's liability for the same calendar
5month of the preceding year or 100% of the taxpayer's actual
6liability for the quarter monthly reporting period. The amount
7of such quarter monthly payments shall be credited against the
8final tax liability of the taxpayer's return for that month.
9Before October 1, 2000, once applicable, the requirement of
10the making of quarter monthly payments to the Department by
11taxpayers having an average monthly tax liability of $10,000
12or more as determined in the manner provided above shall
13continue until such taxpayer's average monthly liability to
14the Department during the preceding 4 complete calendar
15quarters (excluding the month of highest liability and the
16month of lowest liability) is less than $9,000, or until such
17taxpayer's average monthly liability to the Department as
18computed for each calendar quarter of the 4 preceding complete
19calendar quarter period is less than $10,000. However, if a
20taxpayer can show the Department that a substantial change in
21the taxpayer's business has occurred which causes the taxpayer
22to anticipate that his average monthly tax liability for the
23reasonably foreseeable future will fall below the $10,000
24threshold stated above, then such taxpayer may petition the
25Department for a change in such taxpayer's reporting status.
26On and after October 1, 2000, once applicable, the requirement

 

 

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1of the making of quarter monthly payments to the Department by
2taxpayers having an average monthly tax liability of $20,000
3or more as determined in the manner provided above shall
4continue until such taxpayer's average monthly liability to
5the Department during the preceding 4 complete calendar
6quarters (excluding the month of highest liability and the
7month of lowest liability) is less than $19,000 or until such
8taxpayer's average monthly liability to the Department as
9computed for each calendar quarter of the 4 preceding complete
10calendar quarter period is less than $20,000. However, if a
11taxpayer can show the Department that a substantial change in
12the taxpayer's business has occurred which causes the taxpayer
13to anticipate that his average monthly tax liability for the
14reasonably foreseeable future will fall below the $20,000
15threshold stated above, then such taxpayer may petition the
16Department for a change in such taxpayer's reporting status.
17The Department shall change such taxpayer's reporting status
18unless it finds that such change is seasonal in nature and not
19likely to be long term. Quarter monthly payment status shall
20be determined under this paragraph as if the rate reduction to
210% in Public Act 102-700 this amendatory Act of the 102nd
22General Assembly on food for human consumption that is to be
23consumed off the premises where it is sold (other than
24alcoholic beverages, food consisting of or infused with adult
25use cannabis, soft drinks, and food that has been prepared for
26immediate consumption) had not occurred. For quarter monthly

 

 

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1payments due under this paragraph on or after July 1, 2023 and
2through June 30, 2024, "25% of the taxpayer's liability for
3the same calendar month of the preceding year" shall be
4determined as if the rate reduction to 0% in Public Act 102-700
5this amendatory Act of the 102nd General Assembly had not
6occurred. Quarter monthly payment status shall be determined
7under this paragraph as if the rate reduction to 1.25% in
8Public Act 102-700 this amendatory Act of the 102nd General
9Assembly on sales tax holiday items had not occurred. For
10quarter monthly payments due on or after July 1, 2023 and
11through June 30, 2024, "25% of the taxpayer's liability for
12the same calendar month of the preceding year" shall be
13determined as if the rate reduction to 1.25% in Public Act
14102-700 this amendatory Act of the 102nd General Assembly on
15sales tax holiday items had not occurred. If any such quarter
16monthly payment is not paid at the time or in the amount
17required by this Section, then the taxpayer shall be liable
18for penalties and interest on the difference between the
19minimum amount due as a payment and the amount of such quarter
20monthly payment actually and timely paid, except insofar as
21the taxpayer has previously made payments for that month to
22the Department in excess of the minimum payments previously
23due as provided in this Section. The Department shall make
24reasonable rules and regulations to govern the quarter monthly
25payment amount and quarter monthly payment dates for taxpayers
26who file on other than a calendar monthly basis.

 

 

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1    The provisions of this paragraph apply before October 1,
22001. Without regard to whether a taxpayer is required to make
3quarter monthly payments as specified above, any taxpayer who
4is required by Section 2d of this Act to collect and remit
5prepaid taxes and has collected prepaid taxes which average in
6excess of $25,000 per month during the preceding 2 complete
7calendar quarters, shall file a return with the Department as
8required by Section 2f and shall make payments to the
9Department on or before the 7th, 15th, 22nd and last day of the
10month during which such liability is incurred. If the month
11during which such tax liability is incurred began prior to
12September 1, 1985 (the effective date of Public Act 84-221),
13each payment shall be in an amount not less than 22.5% of the
14taxpayer's actual liability under Section 2d. If the month
15during which such tax liability is incurred begins on or after
16January 1, 1986, each payment shall be in an amount equal to
1722.5% of the taxpayer's actual liability for the month or
1827.5% of the taxpayer's liability for the same calendar month
19of the preceding calendar year. If the month during which such
20tax liability is incurred begins on or after January 1, 1987,
21each payment shall be in an amount equal to 22.5% of the
22taxpayer's actual liability for the month or 26.25% of the
23taxpayer's liability for the same calendar month of the
24preceding year. The amount of such quarter monthly payments
25shall be credited against the final tax liability of the
26taxpayer's return for that month filed under this Section or

 

 

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

 

 

HB4040- 206 -LRB103 31628 HLH 60767 b

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

 

 

HB4040- 207 -LRB103 31628 HLH 60767 b

1subsequently to be remitted to the Department under this Act,
2the Use Tax Act, the Service Occupation Tax Act or the Service
3Use Tax Act, in accordance with reasonable rules and
4regulations prescribed by the Department. If the Department
5subsequently determined that all or any part of the credit
6taken was not actually due to the taxpayer, the taxpayer's
72.1% and 1.75% vendor's discount shall be reduced by 2.1% or
81.75% of the difference between the credit taken and that
9actually due, and that taxpayer shall be liable for penalties
10and interest on such difference.
11    If a retailer of motor fuel is entitled to a credit under
12Section 2d of this Act which exceeds the taxpayer's liability
13to the Department under this Act for the month for which the
14taxpayer is filing a return, the Department shall issue the
15taxpayer a credit memorandum for the excess.
16    Notwithstanding any provision of law to the contrary,
17beginning on the first day of the first month after the
18Arlington Megaproject is established under Division 22 of
19Article 10 of the Property Tax Code, all taxes collected under
20this Act from persons located within the Arlington Megaproject
21shall be deposited into the Arlington Megaproject
22Infrastructure Fund.
23    Beginning January 1, 1990, each month the Department shall
24pay into the Local Government Tax Fund, a special fund in the
25State treasury which is hereby created, the net revenue
26realized for the preceding month from the 1% tax imposed under

 

 

HB4040- 208 -LRB103 31628 HLH 60767 b

1this Act.
2    Beginning January 1, 1990, each month the Department shall
3pay into the County and Mass Transit District Fund, a special
4fund in the State treasury which is hereby created, 4% of the
5net revenue realized for the preceding month from the 6.25%
6general rate other than aviation fuel sold on or after
7December 1, 2019. This exception for aviation fuel only
8applies for so long as the revenue use requirements of 49
9U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
10    Beginning August 1, 2000, each month the Department shall
11pay into the County and Mass Transit District Fund 20% of the
12net revenue realized for the preceding month from the 1.25%
13rate on the selling price of motor fuel and gasohol. If, in any
14month, the tax on sales tax holiday items, as defined in
15Section 2-8, is imposed at the rate of 1.25%, then the
16Department shall pay 20% of the net revenue realized for that
17month from the 1.25% rate on the selling price of sales tax
18holiday items into the County and Mass Transit District Fund.
19    Beginning January 1, 1990, each month the Department shall
20pay into the Local Government Tax Fund 16% of the net revenue
21realized for the preceding month from the 6.25% general rate
22on the selling price of tangible personal property other than
23aviation fuel sold on or after December 1, 2019. This
24exception for aviation fuel only applies for so long as the
25revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2647133 are binding on the State.

 

 

HB4040- 209 -LRB103 31628 HLH 60767 b

1    For aviation fuel sold on or after December 1, 2019, each
2month the Department shall pay into the State Aviation Program
3Fund 20% of the net revenue realized for the preceding month
4from the 6.25% general rate on the selling price of aviation
5fuel, less an amount estimated by the Department to be
6required for refunds of the 20% portion of the tax on aviation
7fuel under this Act, which amount shall be deposited into the
8Aviation Fuel Sales Tax Refund Fund. The Department shall only
9pay moneys into the State Aviation Program Fund and the
10Aviation Fuel Sales Tax Refund Fund under this Act for so long
11as the revenue use requirements of 49 U.S.C. 47107(b) and 49
12U.S.C. 47133 are binding on the State.
13    Beginning August 1, 2000, each month the Department shall
14pay into the Local Government Tax Fund 80% of the net revenue
15realized for the preceding month from the 1.25% rate on the
16selling price of motor fuel and gasohol. If, in any month, the
17tax on sales tax holiday items, as defined in Section 2-8, is
18imposed at the rate of 1.25%, then the Department shall pay 80%
19of the net revenue realized for that month from the 1.25% rate
20on the selling price of sales tax holiday items into the Local
21Government Tax Fund.
22    Beginning October 1, 2009, each month the Department shall
23pay into the Capital Projects Fund an amount that is equal to
24an amount estimated by the Department to represent 80% of the
25net revenue realized for the preceding month from the sale of
26candy, grooming and hygiene products, and soft drinks that had

 

 

HB4040- 210 -LRB103 31628 HLH 60767 b

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

 

 

HB4040- 211 -LRB103 31628 HLH 60767 b

1    Beginning July 1, 2015, of the remainder of the moneys
2received by the Department under the Use Tax Act, the Service
3Use Tax Act, the Service Occupation Tax Act, and this Act, each
4month the Department shall deposit $500,000 into the State
5Crime 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 this Act,
14Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
15Act, and Section 9 of the Service Occupation Tax Act, such Acts
16being hereinafter called the "Tax Acts" and such aggregate of
172.2% or 3.8%, as the case may be, of moneys being hereinafter
18called the "Tax Act Amount", and (2) the amount transferred to
19the Build Illinois Fund from the State and Local Sales Tax
20Reform Fund shall be less than the Annual Specified Amount (as
21hereinafter defined), an amount equal to the difference shall
22be immediately paid into the Build Illinois Fund from other
23moneys received by the Department pursuant to the Tax Acts;
24the "Annual Specified Amount" means the amounts specified
25below for fiscal years 1986 through 1993:
26Fiscal YearAnnual Specified Amount

 

 

HB4040- 212 -LRB103 31628 HLH 60767 b

11986$54,800,000
21987$76,650,000
31988$80,480,000
41989$88,510,000
51990$115,330,000
61991$145,470,000
71992$182,730,000
81993$206,520,000;
9and means the Certified Annual Debt Service Requirement (as
10defined in Section 13 of the Build Illinois Bond Act) or the
11Tax Act Amount, whichever is greater, for fiscal year 1994 and
12each fiscal year thereafter; and further provided, that if on
13the last business day of any month the sum of (1) the Tax Act
14Amount required to be deposited into the Build Illinois Bond
15Account in the Build Illinois Fund during such month and (2)
16the amount transferred to the Build Illinois Fund from the
17State and Local Sales Tax Reform Fund shall have been less than
181/12 of the Annual Specified Amount, 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 in no event shall the
22payments required under the preceding proviso result in
23aggregate payments into the Build Illinois Fund pursuant to
24this clause (b) for any fiscal year in excess of the greater of
25(i) the Tax Act Amount or (ii) the Annual Specified Amount for
26such fiscal year. The amounts payable into the Build Illinois

 

 

HB4040- 213 -LRB103 31628 HLH 60767 b

1Fund under clause (b) of the first sentence in this paragraph
2shall be payable only until such time as the aggregate amount
3on deposit under each trust indenture securing Bonds issued
4and outstanding pursuant to the Build Illinois Bond Act is
5sufficient, taking into account any future investment income,
6to fully provide, in accordance with such indenture, for the
7defeasance of or the payment of the principal of, premium, if
8any, and interest on the Bonds secured by such indenture and on
9any Bonds expected to be issued thereafter and all fees and
10costs payable with respect thereto, all as certified by the
11Director of the Bureau of the Budget (now Governor's Office of
12Management and Budget). If on the last business day of any
13month in which Bonds are outstanding pursuant to the Build
14Illinois Bond Act, the aggregate of moneys deposited in the
15Build Illinois Bond Account in the Build Illinois Fund in such
16month shall be less than the amount required to be transferred
17in such month from the Build Illinois Bond Account to the Build
18Illinois Bond Retirement and Interest Fund pursuant to Section
1913 of the Build Illinois Bond Act, an amount equal to such
20deficiency shall be immediately paid from other moneys
21received by the Department pursuant to the Tax Acts to the
22Build Illinois Fund; provided, however, that any amounts paid
23to the Build Illinois Fund in any fiscal year pursuant to this
24sentence shall be deemed to constitute payments pursuant to
25clause (b) of the first sentence of this paragraph and shall
26reduce the amount otherwise payable for such fiscal year

 

 

HB4040- 214 -LRB103 31628 HLH 60767 b

1pursuant to that clause (b). The moneys received by the
2Department pursuant to this Act and required to be deposited
3into the Build Illinois Fund are subject to the pledge, claim
4and charge set forth in Section 12 of the Build Illinois Bond
5Act.
6    Subject to payment of amounts into the Build Illinois Fund
7as provided in the preceding paragraph or in any amendment
8thereto hereafter enacted, the following specified monthly
9installment of the amount requested in the certificate of the
10Chairman of the Metropolitan Pier and Exposition Authority
11provided under Section 8.25f of the State Finance Act, but not
12in excess of sums designated as "Total Deposit", shall be
13deposited in the aggregate from collections under Section 9 of
14the Use Tax Act, Section 9 of the Service Use Tax Act, Section
159 of the Service Occupation Tax Act, and Section 3 of the
16Retailers' Occupation Tax Act into the McCormick Place
17Expansion Project Fund in the specified fiscal years.
18Fiscal YearTotal Deposit
191993         $0
201994 53,000,000
211995 58,000,000
221996 61,000,000
231997 64,000,000
241998 68,000,000
251999 71,000,000
262000 75,000,000

 

 

HB4040- 215 -LRB103 31628 HLH 60767 b

12001 80,000,000
22002 93,000,000
32003 99,000,000
42004103,000,000
52005108,000,000
62006113,000,000
72007119,000,000
82008126,000,000
92009132,000,000
102010139,000,000
112011146,000,000
122012153,000,000
132013161,000,000
142014170,000,000
152015179,000,000
162016189,000,000
172017199,000,000
182018210,000,000
192019221,000,000
202020233,000,000
212021300,000,000
222022300,000,000
232023300,000,000
242024 300,000,000
252025 300,000,000
262026 300,000,000

 

 

HB4040- 216 -LRB103 31628 HLH 60767 b

12027 375,000,000
22028 375,000,000
32029 375,000,000
42030 375,000,000
52031 375,000,000
62032