Sen. Celina Villanueva

Filed: 5/25/2024

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 4951

2    AMENDMENT NO. ______. Amend House Bill 4951, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5
"ARTICLE 5.

 
6    Section 5-5. The Department of Revenue Law of the Civil
7Administrative Code of Illinois is amended by adding Section
82505-815 as follows:
 
9    (20 ILCS 2505/2505-815 new)
10    Sec. 2505-815. County Official Compensation Task Force.
11    (a) The County Official Compensation Task Force is created
12to review the compensation of county-level officials as
13provided for in various State statutes and to make
14recommendations to the General Assembly on any appropriate
15changes to those statutes, including implementation dates.

 

 

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1    (b) The members of the Task Force shall be as follows:
2        (1) the Director of Revenue or the Director's
3    designee, who shall serve as the chair of the Task Force;
4        (2) two representatives from a statewide organization
5    that represents chief county assessment officers, with one
6    representative from a county with a 2020 population of
7    fewer than 25,000 persons and one representative from a
8    county with a 2020 population of 25,000 or more, to be
9    appointed by the Director of Revenue;
10        (3) two representatives from a statewide organization
11    that represents county auditors, with one representative
12    from a county with a 2020 population of fewer than 25,000
13    persons and one representative from a county with a 2020
14    population of 25,000 or more, to be appointed by the
15    Director of Revenue;
16        (4) two representatives from a statewide organization
17    that represents county clerks and recorders, with one
18    representative from a county with a 2020 population of
19    fewer than 25,000 persons and one representative from a
20    county with a 2020 population of 25,000 or more, to be
21    appointed by the Director of Revenue;
22        (5) two representatives from a statewide organization
23    that represents circuit clerks, with one representative
24    from a county with a 2020 population of fewer than 25,000
25    persons and one representative from a county with a 2020
26    population of 25,000 or more, to be appointed by the Chief

 

 

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1    Justice of the Supreme Court;
2        (6) two representatives from a statewide organization
3    that represents county treasurers, with one representative
4    from a county with a 2020 population of fewer than 25,000
5    persons and one representative from a county with a 2020
6    population of 25,000 or more, to be appointed by the
7    Director of Revenue;
8        (7) four representatives from a statewide organization
9    that represents county board members, with 2
10    representatives from counties with a 2020 population of
11    fewer than 25,000 persons and 2 representatives from
12    counties with a 2020 population of 25,000 or more, to be
13    appointed by the Governor; and
14        (8) four members from the General Assembly, with one
15    member appointed by the President of the Senate, one
16    member appointed by the Senate Minority Leader, one member
17    appointed by the Speaker of the House of Representatives,
18    and one member appointed by the House Minority Leader.
19    (c) The Department of Revenue shall provide administrative
20and other support to the Task Force.
21    (d) The Task Force's review shall include, but is not
22limited to, the following subjects:
23        (1) a review and comparison of current statutory
24    provisions and requirements for compensation of
25    county-level officials;
26        (2) the proportion of salary and related costs borne

 

 

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1    by State government compared to local government;
2        (3) job duties, education requirements, and other
3    requirements of those serving as county-level officials;
4    and
5        (4) current compensation levels for county-level
6    officials as compared to comparable positions in
7    non-governmental positions and comparable positions in
8    other levels of government.
9    (e) On or before September 1, 2024, the Task Force members
10shall be appointed. On or before February 1, 2025, the Task
11Force shall prepare a status report that summarizes its work.
12The Task Force shall also prepare a comprehensive report
13either (i) on or before May 1, 2025 or (ii) on or before
14December 31, 2025, if all appointments to the Task Force are
15not made by September 1, 2024. The comprehensive report shall
16summarize the Task Force's findings and make recommendations
17on the implementation of changes to the compensation of chief
18county assessment officers, county auditors, county clerks and
19recorders, county coroners, county treasurers, and circuit
20clerks that will ensure compensation is competitive for
21recruitment and retention and will ensure parity exists among
22compensation levels within each profession, each county, and
23across the State.
24    (f) The Task Force is dissolved on January 1, 2026.
 
25
ARTICLE 10.

 

 

 

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1    Section 10-1. Short title. This Act may be cited as the
2Workforce Development through Charitable Loan Repayment Act.
3References in this Article to "this Act" mean this Article.
 
4    Section 10-5. Purpose. The purpose of this Act is to
5create a private sector incentive for qualified workers to
6work and live in eligible areas while also reducing the
7student debt burden of those workers.
 
8    Section 10-10. Definitions. As used in this Act:
9    "Commission" means the Illinois Student Assistance
10Commission.
11    "Full-time employee" means an individual who is employed
12for consideration for at least 35 hours each week.
13    "Program" means the Workforce Development Through
14Charitable Loan Repayment Program established under this Act.
15    "Qualified community foundation" means a community
16foundation or similar publicly supported organization
17described in Section 170(b)(1)(A)(vi) of the Internal Revenue
18Code of 1986 that (i) is organized or operating in this State,
19(ii) substantially complies, as determined by the Commission,
20with the national standards for United States community
21foundations established by the Community Foundations National
22Standards or a successor entity, and (iii) is approved by the
23Commission for participation in the Program as provided in

 

 

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1Section 10-17.
2    "Qualified worker" means an individual who meets all of
3the following:
4        (1) the individual is a full-time employee of a
5    business that meets one or more of the following:
6            (A) the business is a qualified new business
7        venture that is registered with the Department of
8        Commerce and Economic Opportunity under Section 220 of
9        the Illinois Income Tax Act;
10            (B) the business is primarily engaged in a
11        targeted growth industry;
12            (C) the business is a minority-owned business, a
13        women-owned business, or a business owned by a person
14        with a disability, as those terms are defined in the
15        Business Enterprise for Minorities, Women, and Persons
16        with Disabilities Act; or
17            (D) the business is a not-for-profit corporation,
18        as defined in the General Not For Profit Corporation
19        Act of 1986;
20        (2) the individual is employed by the business
21    described in paragraph (1) at a job site that is located in
22    an Enterprise Zone, an Opportunity Zone, an underserved
23    area, or an area that has a bachelor's degree attainment
24    rate for the population that is below the State or
25    national average for the population, as determined by the
26    United States Census Bureau; and

 

 

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1        (3) the individual (i) received an associate degree or
2    higher and has an outstanding balance due on a qualified
3    education loan, as defined in Section 221 of the Internal
4    Revenue Code, or (ii) accrued educational debt while
5    pursuing skilled trades and related schooling.
6    "Student loan repayment assistance" means grants or
7post-graduation scholarships made by a community foundation
8directly to a student loan servicer on behalf of a qualified
9worker.
10    "Targeted growth industry" means one or more of the
11following:
12        (1) advanced manufacturing;
13        (2) agribusiness and food processing;
14        (3) transportation distribution and logistics;
15        (4) life sciences and biotechnology;
16        (5) business and professional services; or
17        (6) energy.
18    "Underserved area" has the meaning given to that term in
19Section 5-5 of the Economic Development for a Growing Economy
20Tax Credit Act.
 
21    Section 10-15. Establishment of the Program;
22advertisement. The Workforce Development through Charitable
23Loan Repayment Program is hereby created for the purpose of
24facilitating student loan repayment assistance for qualified
25workers. The Program shall be administered by qualified

 

 

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1community foundations with the assistance of the Commission.
2The Commission shall advertise the program on its website.
 
3    Section 10-17. Approval to participate in the Program.
4    (a) A qualified community foundation shall apply to the
5Commission, in the form and manner prescribed by the
6Commission, for eligibility to participate in the Program
7under this Act. Each application shall include:
8        (1) documentary evidence that the qualified community
9    foundation meets the qualifications under Section
10    170(b)(1)(A)(vi) of the Internal Revenue Code and
11    substantially complies with the standards established by
12    Community Foundations National Standards;
13        (2) a list of the names and addresses of all members of
14    the governing board of the qualified community foundation;
15    and
16        (3) a copy of the most recent financial audit of the
17    qualified community foundation's accounts and records
18    conducted by an independent certified public accountant in
19    accordance with auditing standards generally accepted in
20    the United States, government auditing standards, and
21    rules adopted by the Commission.
22    (b) The Commission shall review and either approve or deny
23each application for participation. Applicants shall be
24notified of the status of their application within a
25reasonable amount of time after the completed application is

 

 

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1received.
2    (c) The Commission may provide, by rule, that qualified
3community foundations that are eligible to participate in tax
4incentive programs administered by other State agencies are
5automatically eligible to participate in the Program under
6this Section.
 
7    Section 10-20. Applications. Each qualified community
8foundation shall establish an application process for
9qualified workers to receive student loan repayment assistance
10from the qualified community foundation in accordance with
11this Act and rules adopted for the implementation of this Act
12by the Commission. If necessary due to limited funds, the
13qualified community foundation shall give priority to
14applicants with a higher student debt-to-income ratio when
15awarding student loan repayment assistance under the Program.
 
16    Section 10-25. Eligibility; work requirement. Each
17individual qualified community foundation shall certify the
18eligibility of qualified workers to receive student loan
19repayment assistance and establish work requirements in
20accordance with this Act, rules adopted by the Commission, and
21the requirements of the individual qualified community
22foundation.
 
23    Section 10-30. Administration; rules. Qualified community

 

 

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1foundations shall administer the Program under this Act and
2shall issue to qualified workers any forms required by the
3Commission or the Department of Revenue. The Commission shall
4adopt rules for the Program's effective implementation, except
5that rules regarding the documentation necessary to deduct
6student loan repayment assistance from the worker's income
7under subparagraph (LL) of subsection (a) of Section 203 of
8the Illinois Income Tax Act may be adopted by the Department of
9Revenue in consultation with the Commission. Individual
10qualified community foundations may impose requirements for
11participation in the Program, which shall not be inconsistent
12with this Act or the rules adopted by the Commission or the
13Department of Revenue in connection with this Act.
 
14    Section 10-35. Reporting. Each qualified community
15foundation shall submit an annual report to the Commission
16summarizing its loan repayment activity under the Program.
17Reports under this Section shall be submitted in the form and
18manner prescribed by the Commission.
 
19    Section 10-900. The Illinois Income Tax Act is amended by
20changing Section 203 as follows:
 
21    (35 ILCS 5/203)
22    Sec. 203. Base income defined.
23    (a) Individuals.

 

 

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1        (1) In general. In the case of an individual, base
2    income means an amount equal to the taxpayer's adjusted
3    gross income for the taxable year as modified by paragraph
4    (2).
5        (2) Modifications. The adjusted gross income referred
6    to in paragraph (1) shall be modified by adding thereto
7    the sum of the following amounts:
8            (A) An amount equal to all amounts paid or accrued
9        to the taxpayer as interest or dividends during the
10        taxable year to the extent excluded from gross income
11        in the computation of adjusted gross income, except
12        stock dividends of qualified public utilities
13        described in Section 305(e) of the Internal Revenue
14        Code;
15            (B) An amount equal to the amount of tax imposed by
16        this Act to the extent deducted from gross income in
17        the computation of adjusted gross income for the
18        taxable year;
19            (C) An amount equal to the amount received during
20        the taxable year as a recovery or refund of real
21        property taxes paid with respect to the taxpayer's
22        principal residence under the Revenue Act of 1939 and
23        for which a deduction was previously taken under
24        subparagraph (L) of this paragraph (2) prior to July
25        1, 1991, the retrospective application date of Article
26        4 of Public Act 87-17. In the case of multi-unit or

 

 

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1        multi-use structures and farm dwellings, the taxes on
2        the taxpayer's principal residence shall be that
3        portion of the total taxes for the entire property
4        which is attributable to such principal residence;
5            (D) An amount equal to the amount of the capital
6        gain deduction allowable under the Internal Revenue
7        Code, to the extent deducted from gross income in the
8        computation of adjusted gross income;
9            (D-5) An amount, to the extent not included in
10        adjusted gross income, equal to the amount of money
11        withdrawn by the taxpayer in the taxable year from a
12        medical care savings account and the interest earned
13        on the account in the taxable year of a withdrawal
14        pursuant to subsection (b) of Section 20 of the
15        Medical Care Savings Account Act or subsection (b) of
16        Section 20 of the Medical Care Savings Account Act of
17        2000;
18            (D-10) For taxable years ending after December 31,
19        1997, an amount equal to any eligible remediation
20        costs that the individual deducted in computing
21        adjusted gross income and for which the individual
22        claims a credit under subsection (l) of Section 201;
23            (D-15) For taxable years 2001 and thereafter, an
24        amount equal to the bonus depreciation deduction taken
25        on the taxpayer's federal income tax return for the
26        taxable year under subsection (k) of Section 168 of

 

 

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1        the Internal Revenue Code;
2            (D-16) If the taxpayer sells, transfers, abandons,
3        or otherwise disposes of property for which the
4        taxpayer was required in any taxable year to make an
5        addition modification under subparagraph (D-15), then
6        an amount equal to the aggregate amount of the
7        deductions taken in all taxable years under
8        subparagraph (Z) with respect to that property.
9            If the taxpayer continues to own property through
10        the last day of the last tax year for which a
11        subtraction is allowed with respect to that property
12        under subparagraph (Z) and for which the taxpayer was
13        allowed in any taxable year to make a subtraction
14        modification under subparagraph (Z), then an amount
15        equal to that subtraction modification.
16            The taxpayer is required to make the addition
17        modification under this subparagraph only once with
18        respect to any one piece of property;
19            (D-17) An amount equal to the amount otherwise
20        allowed as a deduction in computing base income for
21        interest paid, accrued, or incurred, directly or
22        indirectly, (i) for taxable years ending on or after
23        December 31, 2004, to a foreign person who would be a
24        member of the same unitary business group but for the
25        fact that foreign person's business activity outside
26        the United States is 80% or more of the foreign

 

 

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1        person's total business activity and (ii) for taxable
2        years ending on or after December 31, 2008, to a person
3        who would be a member of the same unitary business
4        group but for the fact that the person is prohibited
5        under Section 1501(a)(27) from being included in the
6        unitary business group because he or she is ordinarily
7        required to apportion business income under different
8        subsections of Section 304. The addition modification
9        required by this subparagraph shall be reduced to the
10        extent that dividends were included in base income of
11        the unitary group for the same taxable year and
12        received by the taxpayer or by a member of the
13        taxpayer's unitary business group (including amounts
14        included in gross income under Sections 951 through
15        964 of the Internal Revenue Code and amounts included
16        in gross income under Section 78 of the Internal
17        Revenue Code) with respect to the stock of the same
18        person to whom the interest was paid, accrued, or
19        incurred.
20            This paragraph shall not apply to the following:
21                (i) an item of interest paid, accrued, or
22            incurred, directly or indirectly, to a person who
23            is subject in a foreign country or state, other
24            than a state which requires mandatory unitary
25            reporting, to a tax on or measured by net income
26            with respect to such interest; or

 

 

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1                (ii) an item of interest paid, accrued, or
2            incurred, directly or indirectly, to a person if
3            the taxpayer can establish, based on a
4            preponderance of the evidence, both of the
5            following:
6                    (a) the person, during the same taxable
7                year, paid, accrued, or incurred, the interest
8                to a person that is not a related member, and
9                    (b) the transaction giving rise to the
10                interest expense between the taxpayer and the
11                person did not have as a principal purpose the
12                avoidance of Illinois income tax, and is paid
13                pursuant to a contract or agreement that
14                reflects an arm's-length interest rate and
15                terms; or
16                (iii) the taxpayer can establish, based on
17            clear and convincing evidence, that the interest
18            paid, accrued, or incurred relates to a contract
19            or agreement entered into at arm's-length rates
20            and terms and the principal purpose for the
21            payment is not federal or Illinois tax avoidance;
22            or
23                (iv) an item of interest paid, accrued, or
24            incurred, directly or indirectly, to a person if
25            the taxpayer establishes by clear and convincing
26            evidence that the adjustments are unreasonable; or

 

 

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1            if the taxpayer and the Director agree in writing
2            to the application or use of an alternative method
3            of apportionment under Section 304(f).
4                Nothing in this subsection shall preclude the
5            Director from making any other adjustment
6            otherwise allowed under Section 404 of this Act
7            for any tax year beginning after the effective
8            date of this amendment provided such adjustment is
9            made pursuant to regulation adopted by the
10            Department and such regulations provide methods
11            and standards by which the Department will utilize
12            its authority under Section 404 of this Act;
13            (D-18) An amount equal to the amount of intangible
14        expenses and costs otherwise allowed as a deduction in
15        computing base income, and that were paid, accrued, or
16        incurred, directly or indirectly, (i) for taxable
17        years ending on or after December 31, 2004, to a
18        foreign person who would be a member of the same
19        unitary business group but for the fact that the
20        foreign person's business activity outside the United
21        States is 80% or more of that person's total business
22        activity and (ii) for taxable years ending on or after
23        December 31, 2008, to a person who would be a member of
24        the same unitary business group but for the fact that
25        the person is prohibited under Section 1501(a)(27)
26        from being included in the unitary business group

 

 

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1        because he or she is ordinarily required to apportion
2        business income under different subsections of Section
3        304. The addition modification required by this
4        subparagraph shall be reduced to the extent that
5        dividends were included in base income of the unitary
6        group for the same taxable year and received by the
7        taxpayer or by a member of the taxpayer's unitary
8        business group (including amounts included in gross
9        income under Sections 951 through 964 of the Internal
10        Revenue Code and amounts included in gross income
11        under Section 78 of the Internal Revenue Code) with
12        respect to the stock of the same person to whom the
13        intangible expenses and costs were directly or
14        indirectly paid, incurred, or accrued. The preceding
15        sentence does not apply to the extent that the same
16        dividends caused a reduction to the addition
17        modification required under Section 203(a)(2)(D-17) of
18        this Act. As used in this subparagraph, the term
19        "intangible expenses and costs" includes (1) expenses,
20        losses, and costs for, or related to, the direct or
21        indirect acquisition, use, maintenance or management,
22        ownership, sale, exchange, or any other disposition of
23        intangible property; (2) losses incurred, directly or
24        indirectly, from factoring transactions or discounting
25        transactions; (3) royalty, patent, technical, and
26        copyright fees; (4) licensing fees; and (5) other

 

 

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1        similar expenses and costs. For purposes of this
2        subparagraph, "intangible property" includes patents,
3        patent applications, trade names, trademarks, service
4        marks, copyrights, mask works, trade secrets, and
5        similar types of intangible assets.
6            This paragraph shall not apply to the following:
7                (i) any item of intangible expenses or costs
8            paid, accrued, or incurred, directly or
9            indirectly, from a transaction with a person who
10            is subject in a foreign country or state, other
11            than a state which requires mandatory unitary
12            reporting, to a tax on or measured by net income
13            with respect to such item; or
14                (ii) any item of intangible expense or cost
15            paid, accrued, or incurred, directly or
16            indirectly, if the taxpayer can establish, based
17            on a preponderance of the evidence, both of the
18            following:
19                    (a) the person during the same taxable
20                year paid, accrued, or incurred, the
21                intangible expense or cost to a person that is
22                not a related member, and
23                    (b) the transaction giving rise to the
24                intangible expense or cost between the
25                taxpayer and the person did not have as a
26                principal purpose the avoidance of Illinois

 

 

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1                income tax, and is paid pursuant to a contract
2                or agreement that reflects arm's-length terms;
3                or
4                (iii) any item of intangible expense or cost
5            paid, accrued, or incurred, directly or
6            indirectly, from a transaction with a person if
7            the taxpayer establishes by clear and convincing
8            evidence, that the adjustments are unreasonable;
9            or if the taxpayer and the Director agree in
10            writing to the application or use of an
11            alternative method of apportionment under Section
12            304(f);
13                Nothing in this subsection shall preclude the
14            Director from making any other adjustment
15            otherwise allowed under Section 404 of this Act
16            for any tax year beginning after the effective
17            date of this amendment provided such adjustment is
18            made pursuant to regulation adopted by the
19            Department and such regulations provide methods
20            and standards by which the Department will utilize
21            its authority under Section 404 of this Act;
22            (D-19) For taxable years ending on or after
23        December 31, 2008, an amount equal to the amount of
24        insurance premium expenses and costs otherwise allowed
25        as a deduction in computing base income, and that were
26        paid, accrued, or incurred, directly or indirectly, to

 

 

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1        a person who would be a member of the same unitary
2        business group but for the fact that the person is
3        prohibited under Section 1501(a)(27) from being
4        included in the unitary business group because he or
5        she is ordinarily required to apportion business
6        income under different subsections of Section 304. The
7        addition modification required by this subparagraph
8        shall be reduced to the extent that dividends were
9        included in base income of the unitary group for the
10        same taxable year and received by the taxpayer or by a
11        member of the taxpayer's unitary business group
12        (including amounts included in gross income under
13        Sections 951 through 964 of the Internal Revenue Code
14        and amounts included in gross income under Section 78
15        of the Internal Revenue Code) with respect to the
16        stock of the same person to whom the premiums and costs
17        were directly or indirectly paid, incurred, or
18        accrued. The preceding sentence does not apply to the
19        extent that the same dividends caused a reduction to
20        the addition modification required under Section
21        203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
22        Act;
23            (D-20) For taxable years beginning on or after
24        January 1, 2002 and ending on or before December 31,
25        2006, in the case of a distribution from a qualified
26        tuition program under Section 529 of the Internal

 

 

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1        Revenue Code, other than (i) a distribution from a
2        College Savings Pool created under Section 16.5 of the
3        State Treasurer Act or (ii) a distribution from the
4        Illinois Prepaid Tuition Trust Fund, an amount equal
5        to the amount excluded from gross income under Section
6        529(c)(3)(B). For taxable years beginning on or after
7        January 1, 2007, in the case of a distribution from a
8        qualified tuition program under Section 529 of the
9        Internal Revenue Code, other than (i) a distribution
10        from a College Savings Pool created under Section 16.5
11        of the State Treasurer Act, (ii) a distribution from
12        the Illinois Prepaid Tuition Trust Fund, or (iii) a
13        distribution from a qualified tuition program under
14        Section 529 of the Internal Revenue Code that (I)
15        adopts and determines that its offering materials
16        comply with the College Savings Plans Network's
17        disclosure principles and (II) has made reasonable
18        efforts to inform in-state residents of the existence
19        of in-state qualified tuition programs by informing
20        Illinois residents directly and, where applicable, to
21        inform financial intermediaries distributing the
22        program to inform in-state residents of the existence
23        of in-state qualified tuition programs at least
24        annually, an amount equal to the amount excluded from
25        gross income under Section 529(c)(3)(B).
26            For the purposes of this subparagraph (D-20), a

 

 

10300HB4951sam002- 22 -LRB103 38094 HLH 74177 a

1        qualified tuition program has made reasonable efforts
2        if it makes disclosures (which may use the term
3        "in-state program" or "in-state plan" and need not
4        specifically refer to Illinois or its qualified
5        programs by name) (i) directly to prospective
6        participants in its offering materials or makes a
7        public disclosure, such as a website posting; and (ii)
8        where applicable, to intermediaries selling the
9        out-of-state program in the same manner that the
10        out-of-state program distributes its offering
11        materials;
12            (D-20.5) For taxable years beginning on or after
13        January 1, 2018, in the case of a distribution from a
14        qualified ABLE program under Section 529A of the
15        Internal Revenue Code, other than a distribution from
16        a qualified ABLE program created under Section 16.6 of
17        the State Treasurer Act, an amount equal to the amount
18        excluded from gross income under Section 529A(c)(1)(B)
19        of the Internal Revenue Code;
20            (D-21) For taxable years beginning on or after
21        January 1, 2007, in the case of transfer of moneys from
22        a qualified tuition program under Section 529 of the
23        Internal Revenue Code that is administered by the
24        State to an out-of-state program, an amount equal to
25        the amount of moneys previously deducted from base
26        income under subsection (a)(2)(Y) of this Section;

 

 

10300HB4951sam002- 23 -LRB103 38094 HLH 74177 a

1            (D-21.5) For taxable years beginning on or after
2        January 1, 2018, in the case of the transfer of moneys
3        from a qualified tuition program under Section 529 or
4        a qualified ABLE program under Section 529A of the
5        Internal Revenue Code that is administered by this
6        State to an ABLE account established under an
7        out-of-state ABLE account program, an amount equal to
8        the contribution component of the transferred amount
9        that was previously deducted from base income under
10        subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
11        Section;
12            (D-22) For taxable years beginning on or after
13        January 1, 2009, and prior to January 1, 2018, in the
14        case of a nonqualified withdrawal or refund of moneys
15        from a qualified tuition program under Section 529 of
16        the Internal Revenue Code administered by the State
17        that is not used for qualified expenses at an eligible
18        education institution, an amount equal to the
19        contribution component of the nonqualified withdrawal
20        or refund that was previously deducted from base
21        income under subsection (a)(2)(y) of this Section,
22        provided that the withdrawal or refund did not result
23        from the beneficiary's death or disability. For
24        taxable years beginning on or after January 1, 2018:
25        (1) in the case of a nonqualified withdrawal or
26        refund, as defined under Section 16.5 of the State

 

 

10300HB4951sam002- 24 -LRB103 38094 HLH 74177 a

1        Treasurer Act, of moneys from a qualified tuition
2        program under Section 529 of the Internal Revenue Code
3        administered by the State, an amount equal to the
4        contribution component of the nonqualified withdrawal
5        or refund that was previously deducted from base
6        income under subsection (a)(2)(Y) of this Section, and
7        (2) in the case of a nonqualified withdrawal or refund
8        from a qualified ABLE program under Section 529A of
9        the Internal Revenue Code administered by the State
10        that is not used for qualified disability expenses, an
11        amount equal to the contribution component of the
12        nonqualified withdrawal or refund that was previously
13        deducted from base income under subsection (a)(2)(HH)
14        of this Section;
15            (D-23) An amount equal to the credit allowable to
16        the taxpayer under Section 218(a) of this Act,
17        determined without regard to Section 218(c) of this
18        Act;
19            (D-24) For taxable years ending on or after
20        December 31, 2017, an amount equal to the deduction
21        allowed under Section 199 of the Internal Revenue Code
22        for the taxable year;
23            (D-25) In the case of a resident, an amount equal
24        to the amount of tax for which a credit is allowed
25        pursuant to Section 201(p)(7) of this Act;
26    and by deducting from the total so obtained the sum of the

 

 

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1    following amounts:
2            (E) For taxable years ending before December 31,
3        2001, any amount included in such total in respect of
4        any compensation (including but not limited to any
5        compensation paid or accrued to a serviceman while a
6        prisoner of war or missing in action) paid to a
7        resident by reason of being on active duty in the Armed
8        Forces of the United States and in respect of any
9        compensation paid or accrued to a resident who as a
10        governmental employee was a prisoner of war or missing
11        in action, and in respect of any compensation paid to a
12        resident in 1971 or thereafter for annual training
13        performed pursuant to Sections 502 and 503, Title 32,
14        United States Code as a member of the Illinois
15        National Guard or, beginning with taxable years ending
16        on or after December 31, 2007, the National Guard of
17        any other state. For taxable years ending on or after
18        December 31, 2001, any amount included in such total
19        in respect of any compensation (including but not
20        limited to any compensation paid or accrued to a
21        serviceman while a prisoner of war or missing in
22        action) paid to a resident by reason of being a member
23        of any component of the Armed Forces of the United
24        States and in respect of any compensation paid or
25        accrued to a resident who as a governmental employee
26        was a prisoner of war or missing in action, and in

 

 

10300HB4951sam002- 26 -LRB103 38094 HLH 74177 a

1        respect of any compensation paid to a resident in 2001
2        or thereafter by reason of being a member of the
3        Illinois National Guard or, beginning with taxable
4        years ending on or after December 31, 2007, the
5        National Guard of any other state. The provisions of
6        this subparagraph (E) are exempt from the provisions
7        of Section 250;
8            (F) An amount equal to all amounts included in
9        such total pursuant to the provisions of Sections
10        402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
11        408 of the Internal Revenue Code, or included in such
12        total as distributions under the provisions of any
13        retirement or disability plan for employees of any
14        governmental agency or unit, or retirement payments to
15        retired partners, which payments are excluded in
16        computing net earnings from self employment by Section
17        1402 of the Internal Revenue Code and regulations
18        adopted pursuant thereto;
19            (G) The valuation limitation amount;
20            (H) An amount equal to the amount of any tax
21        imposed by this Act which was refunded to the taxpayer
22        and included in such total for the taxable year;
23            (I) An amount equal to all amounts included in
24        such total pursuant to the provisions of Section 111
25        of the Internal Revenue Code as a recovery of items
26        previously deducted from adjusted gross income in the

 

 

10300HB4951sam002- 27 -LRB103 38094 HLH 74177 a

1        computation of taxable income;
2            (J) An amount equal to those dividends included in
3        such total which were paid by a corporation which
4        conducts business operations in a River Edge
5        Redevelopment Zone or zones created under the River
6        Edge Redevelopment Zone Act, and conducts
7        substantially all of its operations in a River Edge
8        Redevelopment Zone or zones. This subparagraph (J) is
9        exempt from the provisions of Section 250;
10            (K) An amount equal to those dividends included in
11        such total that were paid by a corporation that
12        conducts business operations in a federally designated
13        Foreign Trade Zone or Sub-Zone and that is designated
14        a High Impact Business located in Illinois; provided
15        that dividends eligible for the deduction provided in
16        subparagraph (J) of paragraph (2) of this subsection
17        shall not be eligible for the deduction provided under
18        this subparagraph (K);
19            (L) For taxable years ending after December 31,
20        1983, an amount equal to all social security benefits
21        and railroad retirement benefits included in such
22        total pursuant to Sections 72(r) and 86 of the
23        Internal Revenue Code;
24            (M) With the exception of any amounts subtracted
25        under subparagraph (N), an amount equal to the sum of
26        all amounts disallowed as deductions by (i) Sections

 

 

10300HB4951sam002- 28 -LRB103 38094 HLH 74177 a

1        171(a)(2) and 265(a)(2) of the Internal Revenue Code,
2        and all amounts of expenses allocable to interest and
3        disallowed as deductions by Section 265(a)(1) of the
4        Internal Revenue Code; and (ii) for taxable years
5        ending on or after August 13, 1999, Sections
6        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
7        Internal Revenue Code, plus, for taxable years ending
8        on or after December 31, 2011, Section 45G(e)(3) of
9        the Internal Revenue Code and, for taxable years
10        ending on or after December 31, 2008, any amount
11        included in gross income under Section 87 of the
12        Internal Revenue Code; the provisions of this
13        subparagraph are exempt from the provisions of Section
14        250;
15            (N) An amount equal to all amounts included in
16        such total which are exempt from taxation by this
17        State either by reason of its statutes or Constitution
18        or by reason of the Constitution, treaties or statutes
19        of the United States; provided that, in the case of any
20        statute of this State that exempts income derived from
21        bonds or other obligations from the tax imposed under
22        this Act, the amount exempted shall be the interest
23        net of bond premium amortization;
24            (O) An amount equal to any contribution made to a
25        job training project established pursuant to the Tax
26        Increment Allocation Redevelopment Act;

 

 

10300HB4951sam002- 29 -LRB103 38094 HLH 74177 a

1            (P) An amount equal to the amount of the deduction
2        used to compute the federal income tax credit for
3        restoration of substantial amounts held under claim of
4        right for the taxable year pursuant to Section 1341 of
5        the Internal Revenue Code or of any itemized deduction
6        taken from adjusted gross income in the computation of
7        taxable income for restoration of substantial amounts
8        held under claim of right for the taxable year;
9            (Q) An amount equal to any amounts included in
10        such total, received by the taxpayer as an
11        acceleration in the payment of life, endowment or
12        annuity benefits in advance of the time they would
13        otherwise be payable as an indemnity for a terminal
14        illness;
15            (R) An amount equal to the amount of any federal or
16        State bonus paid to veterans of the Persian Gulf War;
17            (S) An amount, to the extent included in adjusted
18        gross income, equal to the amount of a contribution
19        made in the taxable year on behalf of the taxpayer to a
20        medical care savings account established under the
21        Medical Care Savings Account Act or the Medical Care
22        Savings Account Act of 2000 to the extent the
23        contribution is accepted by the account administrator
24        as provided in that Act;
25            (T) An amount, to the extent included in adjusted
26        gross income, equal to the amount of interest earned

 

 

10300HB4951sam002- 30 -LRB103 38094 HLH 74177 a

1        in the taxable year on a medical care savings account
2        established under the Medical Care Savings Account Act
3        or the Medical Care Savings Account Act of 2000 on
4        behalf of the taxpayer, other than interest added
5        pursuant to item (D-5) of this paragraph (2);
6            (U) For one taxable year beginning on or after
7        January 1, 1994, an amount equal to the total amount of
8        tax imposed and paid under subsections (a) and (b) of
9        Section 201 of this Act on grant amounts received by
10        the taxpayer under the Nursing Home Grant Assistance
11        Act during the taxpayer's taxable years 1992 and 1993;
12            (V) Beginning with tax years ending on or after
13        December 31, 1995 and ending with tax years ending on
14        or before December 31, 2004, an amount equal to the
15        amount paid by a taxpayer who is a self-employed
16        taxpayer, a partner of a partnership, or a shareholder
17        in a Subchapter S corporation for health insurance or
18        long-term care insurance for that taxpayer or that
19        taxpayer's spouse or dependents, to the extent that
20        the amount paid for that health insurance or long-term
21        care insurance may be deducted under Section 213 of
22        the Internal Revenue Code, has not been deducted on
23        the federal income tax return of the taxpayer, and
24        does not exceed the taxable income attributable to
25        that taxpayer's income, self-employment income, or
26        Subchapter S corporation income; except that no

 

 

10300HB4951sam002- 31 -LRB103 38094 HLH 74177 a

1        deduction shall be allowed under this item (V) if the
2        taxpayer is eligible to participate in any health
3        insurance or long-term care insurance plan of an
4        employer of the taxpayer or the taxpayer's spouse. The
5        amount of the health insurance and long-term care
6        insurance subtracted under this item (V) shall be
7        determined by multiplying total health insurance and
8        long-term care insurance premiums paid by the taxpayer
9        times a number that represents the fractional
10        percentage of eligible medical expenses under Section
11        213 of the Internal Revenue Code of 1986 not actually
12        deducted on the taxpayer's federal income tax return;
13            (W) For taxable years beginning on or after
14        January 1, 1998, all amounts included in the
15        taxpayer's federal gross income in the taxable year
16        from amounts converted from a regular IRA to a Roth
17        IRA. This paragraph is exempt from the provisions of
18        Section 250;
19            (X) For taxable year 1999 and thereafter, an
20        amount equal to the amount of any (i) distributions,
21        to the extent includible in gross income for federal
22        income tax purposes, made to the taxpayer because of
23        his or her status as a victim of persecution for racial
24        or religious reasons by Nazi Germany or any other Axis
25        regime or as an heir of the victim and (ii) items of
26        income, to the extent includible in gross income for

 

 

10300HB4951sam002- 32 -LRB103 38094 HLH 74177 a

1        federal income tax purposes, attributable to, derived
2        from or in any way related to assets stolen from,
3        hidden from, or otherwise lost to a victim of
4        persecution for racial or religious reasons by Nazi
5        Germany or any other Axis regime immediately prior to,
6        during, and immediately after World War II, including,
7        but not limited to, interest on the proceeds
8        receivable as insurance under policies issued to a
9        victim of persecution for racial or religious reasons
10        by Nazi Germany or any other Axis regime by European
11        insurance companies immediately prior to and during
12        World War II; provided, however, this subtraction from
13        federal adjusted gross income does not apply to assets
14        acquired with such assets or with the proceeds from
15        the sale of such assets; provided, further, this
16        paragraph shall only apply to a taxpayer who was the
17        first recipient of such assets after their recovery
18        and who is a victim of persecution for racial or
19        religious reasons by Nazi Germany or any other Axis
20        regime or as an heir of the victim. The amount of and
21        the eligibility for any public assistance, benefit, or
22        similar entitlement is not affected by the inclusion
23        of items (i) and (ii) of this paragraph in gross income
24        for federal income tax purposes. This paragraph is
25        exempt from the provisions of Section 250;
26            (Y) For taxable years beginning on or after

 

 

10300HB4951sam002- 33 -LRB103 38094 HLH 74177 a

1        January 1, 2002 and ending on or before December 31,
2        2004, moneys contributed in the taxable year to a
3        College Savings Pool account under Section 16.5 of the
4        State Treasurer Act, except that amounts excluded from
5        gross income under Section 529(c)(3)(C)(i) of the
6        Internal Revenue Code shall not be considered moneys
7        contributed under this subparagraph (Y). For taxable
8        years beginning on or after January 1, 2005, a maximum
9        of $10,000 contributed in the taxable year to (i) a
10        College Savings Pool account under Section 16.5 of the
11        State Treasurer Act or (ii) the Illinois Prepaid
12        Tuition Trust Fund, except that amounts excluded from
13        gross income under Section 529(c)(3)(C)(i) of the
14        Internal Revenue Code shall not be considered moneys
15        contributed under this subparagraph (Y). For purposes
16        of this subparagraph, contributions made by an
17        employer on behalf of an employee, or matching
18        contributions made by an employee, shall be treated as
19        made by the employee. This subparagraph (Y) is exempt
20        from the provisions of Section 250;
21            (Z) For taxable years 2001 and thereafter, for the
22        taxable year in which the bonus depreciation deduction
23        is taken on the taxpayer's federal income tax return
24        under subsection (k) of Section 168 of the Internal
25        Revenue Code and for each applicable taxable year
26        thereafter, an amount equal to "x", where:

 

 

10300HB4951sam002- 34 -LRB103 38094 HLH 74177 a

1                (1) "y" equals the amount of the depreciation
2            deduction taken for the taxable year on the
3            taxpayer's federal income tax return on property
4            for which the bonus depreciation deduction was
5            taken in any year under subsection (k) of Section
6            168 of the Internal Revenue Code, but not
7            including the bonus depreciation deduction;
8                (2) for taxable years ending on or before
9            December 31, 2005, "x" equals "y" multiplied by 30
10            and then divided by 70 (or "y" multiplied by
11            0.429); and
12                (3) for taxable years ending after December
13            31, 2005:
14                    (i) for property on which a bonus
15                depreciation deduction of 30% of the adjusted
16                basis was taken, "x" equals "y" multiplied by
17                30 and then divided by 70 (or "y" multiplied
18                by 0.429);
19                    (ii) for property on which a bonus
20                depreciation deduction of 50% of the adjusted
21                basis was taken, "x" equals "y" multiplied by
22                1.0;
23                    (iii) for property on which a bonus
24                depreciation deduction of 100% of the adjusted
25                basis was taken in a taxable year ending on or
26                after December 31, 2021, "x" equals the

 

 

10300HB4951sam002- 35 -LRB103 38094 HLH 74177 a

1                depreciation deduction that would be allowed
2                on that property if the taxpayer had made the
3                election under Section 168(k)(7) of the
4                Internal Revenue Code to not claim bonus
5                depreciation on that property; and
6                    (iv) for property on which a bonus
7                depreciation deduction of a percentage other
8                than 30%, 50% or 100% of the adjusted basis
9                was taken in a taxable year ending on or after
10                December 31, 2021, "x" equals "y" multiplied
11                by 100 times the percentage bonus depreciation
12                on the property (that is, 100(bonus%)) and
13                then divided by 100 times 1 minus the
14                percentage bonus depreciation on the property
15                (that is, 100(1-bonus%)).
16            The aggregate amount deducted under this
17        subparagraph in all taxable years for any one piece of
18        property may not exceed the amount of the bonus
19        depreciation deduction taken on that property on the
20        taxpayer's federal income tax return under subsection
21        (k) of Section 168 of the Internal Revenue Code. This
22        subparagraph (Z) is exempt from the provisions of
23        Section 250;
24            (AA) If the taxpayer sells, transfers, abandons,
25        or otherwise disposes of property for which the
26        taxpayer was required in any taxable year to make an

 

 

10300HB4951sam002- 36 -LRB103 38094 HLH 74177 a

1        addition modification under subparagraph (D-15), then
2        an amount equal to that addition modification.
3            If the taxpayer continues to own property through
4        the last day of the last tax year for which a
5        subtraction is allowed with respect to that property
6        under subparagraph (Z) and for which the taxpayer was
7        required in any taxable year to make an addition
8        modification under subparagraph (D-15), then an amount
9        equal to that addition modification.
10            The taxpayer is allowed to take the deduction
11        under this subparagraph only once with respect to any
12        one piece of property.
13            This subparagraph (AA) is exempt from the
14        provisions of Section 250;
15            (BB) Any amount included in adjusted gross income,
16        other than salary, received by a driver in a
17        ridesharing arrangement using a motor vehicle;
18            (CC) The amount of (i) any interest income (net of
19        the deductions allocable thereto) taken into account
20        for the taxable year with respect to a transaction
21        with a taxpayer that is required to make an addition
22        modification with respect to such transaction under
23        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
24        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
25        the amount of that addition modification, and (ii) any
26        income from intangible property (net of the deductions

 

 

10300HB4951sam002- 37 -LRB103 38094 HLH 74177 a

1        allocable thereto) taken into account for the taxable
2        year with respect to a transaction with a taxpayer
3        that is required to make an addition modification with
4        respect to such transaction under Section
5        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
6        203(d)(2)(D-8), but not to exceed the amount of that
7        addition modification. This subparagraph (CC) is
8        exempt from the provisions of Section 250;
9            (DD) An amount equal to the interest income taken
10        into account for the taxable year (net of the
11        deductions allocable thereto) with respect to
12        transactions with (i) a foreign person who would be a
13        member of the taxpayer's unitary business group but
14        for the fact that the foreign person's business
15        activity outside the United States is 80% or more of
16        that person's total business activity and (ii) for
17        taxable years ending on or after December 31, 2008, to
18        a person who would be a member of the same unitary
19        business group but for the fact that the person is
20        prohibited under Section 1501(a)(27) from being
21        included in the unitary business group because he or
22        she is ordinarily required to apportion business
23        income under different subsections of Section 304, but
24        not to exceed the addition modification required to be
25        made for the same taxable year under Section
26        203(a)(2)(D-17) for interest paid, accrued, or

 

 

10300HB4951sam002- 38 -LRB103 38094 HLH 74177 a

1        incurred, directly or indirectly, to the same person.
2        This subparagraph (DD) is exempt from the provisions
3        of Section 250;
4            (EE) An amount equal to the income from intangible
5        property taken into account for the taxable year (net
6        of the deductions allocable thereto) with respect to
7        transactions with (i) a foreign person who would be a
8        member of the taxpayer's unitary business group but
9        for the fact that the foreign person's business
10        activity outside the United States is 80% or more of
11        that person's total business activity and (ii) for
12        taxable years ending on or after December 31, 2008, to
13        a person who would be a member of the same unitary
14        business group but for the fact that the person is
15        prohibited under Section 1501(a)(27) from being
16        included in the unitary business group because he or
17        she is ordinarily required to apportion business
18        income under different subsections of Section 304, but
19        not to exceed the addition modification required to be
20        made for the same taxable year under Section
21        203(a)(2)(D-18) for intangible expenses and costs
22        paid, accrued, or incurred, directly or indirectly, to
23        the same foreign person. This subparagraph (EE) is
24        exempt from the provisions of Section 250;
25            (FF) An amount equal to any amount awarded to the
26        taxpayer during the taxable year by the Court of

 

 

10300HB4951sam002- 39 -LRB103 38094 HLH 74177 a

1        Claims under subsection (c) of Section 8 of the Court
2        of Claims Act for time unjustly served in a State
3        prison. This subparagraph (FF) is exempt from the
4        provisions of Section 250;
5            (GG) For taxable years ending on or after December
6        31, 2011, in the case of a taxpayer who was required to
7        add back any insurance premiums under Section
8        203(a)(2)(D-19), such taxpayer may elect to subtract
9        that part of a reimbursement received from the
10        insurance company equal to the amount of the expense
11        or loss (including expenses incurred by the insurance
12        company) that would have been taken into account as a
13        deduction for federal income tax purposes if the
14        expense or loss had been uninsured. If a taxpayer
15        makes the election provided for by this subparagraph
16        (GG), the insurer to which the premiums were paid must
17        add back to income the amount subtracted by the
18        taxpayer pursuant to this subparagraph (GG). This
19        subparagraph (GG) is exempt from the provisions of
20        Section 250;
21            (HH) For taxable years beginning on or after
22        January 1, 2018 and prior to January 1, 2028, a maximum
23        of $10,000 contributed in the taxable year to a
24        qualified ABLE account under Section 16.6 of the State
25        Treasurer Act, except that amounts excluded from gross
26        income under Section 529(c)(3)(C)(i) or Section

 

 

10300HB4951sam002- 40 -LRB103 38094 HLH 74177 a

1        529A(c)(1)(C) of the Internal Revenue Code shall not
2        be considered moneys contributed under this
3        subparagraph (HH). For purposes of this subparagraph
4        (HH), contributions made by an employer on behalf of
5        an employee, or matching contributions made by an
6        employee, shall be treated as made by the employee;
7            (II) For taxable years that begin on or after
8        January 1, 2021 and begin before January 1, 2026, the
9        amount that is included in the taxpayer's federal
10        adjusted gross income pursuant to Section 61 of the
11        Internal Revenue Code as discharge of indebtedness
12        attributable to student loan forgiveness and that is
13        not excluded from the taxpayer's federal adjusted
14        gross income pursuant to paragraph (5) of subsection
15        (f) of Section 108 of the Internal Revenue Code; and
16            (JJ) For taxable years beginning on or after
17        January 1, 2023, for any cannabis establishment
18        operating in this State and licensed under the
19        Cannabis Regulation and Tax Act or any cannabis
20        cultivation center or medical cannabis dispensing
21        organization operating in this State and licensed
22        under the Compassionate Use of Medical Cannabis
23        Program Act, an amount equal to the deductions that
24        were disallowed under Section 280E of the Internal
25        Revenue Code for the taxable year and that would not be
26        added back under this subsection. The provisions of

 

 

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1        this subparagraph (JJ) are exempt from the provisions
2        of Section 250; .
3            (KK) (JJ) To the extent includible in gross income
4        for federal income tax purposes, any amount awarded or
5        paid to the taxpayer as a result of a judgment or
6        settlement for fertility fraud as provided in Section
7        15 of the Illinois Fertility Fraud Act, donor
8        fertility fraud as provided in Section 20 of the
9        Illinois Fertility Fraud Act, or similar action in
10        another state; and .
11            (LL) For taxable years beginning on or after
12        January 1, 2026, if the taxpayer is a qualified
13        worker, as defined in the Workforce Development
14        through Charitable Loan Repayment Act, an amount equal
15        to the amount included in the taxpayer's federal
16        adjusted gross income that is attributable to student
17        loan repayment assistance received by the taxpayer
18        during the taxable year from a qualified community
19        foundation under the provisions of the Workforce
20        Development Through Charitable Loan Repayment Act.
21            This subparagraph (LL) is exempt from the
22        provisions of Section 250.
 
23    (b) Corporations.
24        (1) In general. In the case of a corporation, base
25    income means an amount equal to the taxpayer's taxable

 

 

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1    income for the taxable year as modified by paragraph (2).
2        (2) Modifications. The taxable income referred to in
3    paragraph (1) shall be modified by adding thereto the sum
4    of the following amounts:
5            (A) An amount equal to all amounts paid or accrued
6        to the taxpayer as interest and all distributions
7        received from regulated investment companies during
8        the taxable year to the extent excluded from gross
9        income in the computation of taxable income;
10            (B) An amount equal to the amount of tax imposed by
11        this Act to the extent deducted from gross income in
12        the computation of taxable income for the taxable
13        year;
14            (C) In the case of a regulated investment company,
15        an amount equal to the excess of (i) the net long-term
16        capital gain for the taxable year, over (ii) the
17        amount of the capital gain dividends designated as
18        such in accordance with Section 852(b)(3)(C) of the
19        Internal Revenue Code and any amount designated under
20        Section 852(b)(3)(D) of the Internal Revenue Code,
21        attributable to the taxable year (this amendatory Act
22        of 1995 (Public Act 89-89) is declarative of existing
23        law and is not a new enactment);
24            (D) The amount of any net operating loss deduction
25        taken in arriving at taxable income, other than a net
26        operating loss carried forward from a taxable year

 

 

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1        ending prior to December 31, 1986;
2            (E) For taxable years in which a net operating
3        loss carryback or carryforward from a taxable year
4        ending prior to December 31, 1986 is an element of
5        taxable income under paragraph (1) of subsection (e)
6        or subparagraph (E) of paragraph (2) of subsection
7        (e), the amount by which addition modifications other
8        than those provided by this subparagraph (E) exceeded
9        subtraction modifications in such earlier taxable
10        year, with the following limitations applied in the
11        order that they are listed:
12                (i) the addition modification relating to the
13            net operating loss carried back or forward to the
14            taxable year from any taxable year ending prior to
15            December 31, 1986 shall be reduced by the amount
16            of addition modification under this subparagraph
17            (E) which related to that net operating loss and
18            which was taken into account in calculating the
19            base income of an earlier taxable year, and
20                (ii) the addition modification relating to the
21            net operating loss carried back or forward to the
22            taxable year from any taxable year ending prior to
23            December 31, 1986 shall not exceed the amount of
24            such carryback or carryforward;
25            For taxable years in which there is a net
26        operating loss carryback or carryforward from more

 

 

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1        than one other taxable year ending prior to December
2        31, 1986, the addition modification provided in this
3        subparagraph (E) shall be the sum of the amounts
4        computed independently under the preceding provisions
5        of this subparagraph (E) for each such taxable year;
6            (E-5) For taxable years ending after December 31,
7        1997, an amount equal to any eligible remediation
8        costs that the corporation deducted in computing
9        adjusted gross income and for which the corporation
10        claims a credit under subsection (l) of Section 201;
11            (E-10) For taxable years 2001 and thereafter, an
12        amount equal to the bonus depreciation deduction taken
13        on the taxpayer's federal income tax return for the
14        taxable year under subsection (k) of Section 168 of
15        the Internal Revenue Code;
16            (E-11) If the taxpayer sells, transfers, abandons,
17        or otherwise disposes of property for which the
18        taxpayer was required in any taxable year to make an
19        addition modification under subparagraph (E-10), then
20        an amount equal to the aggregate amount of the
21        deductions taken in all taxable years under
22        subparagraph (T) with respect to that property.
23            If the taxpayer continues to own property through
24        the last day of the last tax year for which a
25        subtraction is allowed with respect to that property
26        under subparagraph (T) and for which the taxpayer was

 

 

10300HB4951sam002- 45 -LRB103 38094 HLH 74177 a

1        allowed in any taxable year to make a subtraction
2        modification under subparagraph (T), then an amount
3        equal to that subtraction modification.
4            The taxpayer is required to make the addition
5        modification under this subparagraph only once with
6        respect to any one piece of property;
7            (E-12) An amount equal to the amount otherwise
8        allowed as a deduction in computing base income for
9        interest paid, accrued, or incurred, directly or
10        indirectly, (i) for taxable years ending on or after
11        December 31, 2004, to a foreign person who would be a
12        member of the same unitary business group but for the
13        fact the foreign person's business activity outside
14        the United States is 80% or more of the foreign
15        person's total business activity and (ii) for taxable
16        years ending on or after December 31, 2008, to a person
17        who would be a member of the same unitary business
18        group but for the fact that the person is prohibited
19        under Section 1501(a)(27) from being included in the
20        unitary business group because he or she is ordinarily
21        required to apportion business income under different
22        subsections of Section 304. The addition modification
23        required by this subparagraph shall be reduced to the
24        extent that dividends were included in base income of
25        the unitary group for the same taxable year and
26        received by the taxpayer or by a member of the

 

 

10300HB4951sam002- 46 -LRB103 38094 HLH 74177 a

1        taxpayer's unitary business group (including amounts
2        included in gross income pursuant to Sections 951
3        through 964 of the Internal Revenue Code and amounts
4        included in gross income under Section 78 of the
5        Internal Revenue Code) with respect to the stock of
6        the same person to whom the interest was paid,
7        accrued, or incurred.
8            This paragraph shall not apply to the following:
9                (i) an item of interest paid, accrued, or
10            incurred, directly or indirectly, to a person who
11            is subject in a foreign country or state, other
12            than a state which requires mandatory unitary
13            reporting, to a tax on or measured by net income
14            with respect to such interest; or
15                (ii) an item of interest paid, accrued, or
16            incurred, directly or indirectly, to a person if
17            the taxpayer can establish, based on a
18            preponderance of the evidence, both of the
19            following:
20                    (a) the person, during the same taxable
21                year, paid, accrued, or incurred, the interest
22                to a person that is not a related member, and
23                    (b) the transaction giving rise to the
24                interest expense between the taxpayer and the
25                person did not have as a principal purpose the
26                avoidance of Illinois income tax, and is paid

 

 

10300HB4951sam002- 47 -LRB103 38094 HLH 74177 a

1                pursuant to a contract or agreement that
2                reflects an arm's-length interest rate and
3                terms; or
4                (iii) the taxpayer can establish, based on
5            clear and convincing evidence, that the interest
6            paid, accrued, or incurred relates to a contract
7            or agreement entered into at arm's-length rates
8            and terms and the principal purpose for the
9            payment is not federal or Illinois tax avoidance;
10            or
11                (iv) an item of interest paid, accrued, or
12            incurred, directly or indirectly, to a person if
13            the taxpayer establishes by clear and convincing
14            evidence that the adjustments are unreasonable; or
15            if the taxpayer and the Director agree in writing
16            to the application or use of an alternative method
17            of apportionment under Section 304(f).
18                Nothing in this subsection shall preclude the
19            Director from making any other adjustment
20            otherwise allowed under Section 404 of this Act
21            for any tax year beginning after the effective
22            date of this amendment provided such adjustment is
23            made pursuant to regulation adopted by the
24            Department and such regulations provide methods
25            and standards by which the Department will utilize
26            its authority under Section 404 of this Act;

 

 

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1            (E-13) An amount equal to the amount of intangible
2        expenses and costs otherwise allowed as a deduction in
3        computing base income, and that were paid, accrued, or
4        incurred, directly or indirectly, (i) for taxable
5        years ending on or after December 31, 2004, to a
6        foreign person who would be a member of the same
7        unitary business group but for the fact that the
8        foreign person's business activity outside the United
9        States is 80% or more of that person's total business
10        activity and (ii) for taxable years ending on or after
11        December 31, 2008, to a person who would be a member of
12        the same unitary business group but for the fact that
13        the person is prohibited under Section 1501(a)(27)
14        from being included in the unitary business group
15        because he or she is ordinarily required to apportion
16        business income under different subsections of Section
17        304. The addition modification required by this
18        subparagraph shall be reduced to the extent that
19        dividends were included in base income of the unitary
20        group for the same taxable year and received by the
21        taxpayer or by a member of the taxpayer's unitary
22        business group (including amounts included in gross
23        income pursuant to Sections 951 through 964 of the
24        Internal Revenue Code and amounts included in gross
25        income under Section 78 of the Internal Revenue Code)
26        with respect to the stock of the same person to whom

 

 

10300HB4951sam002- 49 -LRB103 38094 HLH 74177 a

1        the intangible expenses and costs were directly or
2        indirectly paid, incurred, or accrued. The preceding
3        sentence shall not apply to the extent that the same
4        dividends caused a reduction to the addition
5        modification required under Section 203(b)(2)(E-12) of
6        this Act. As used in this subparagraph, the term
7        "intangible expenses and costs" includes (1) expenses,
8        losses, and costs for, or related to, the direct or
9        indirect acquisition, use, maintenance or management,
10        ownership, sale, exchange, or any other disposition of
11        intangible property; (2) losses incurred, directly or
12        indirectly, from factoring transactions or discounting
13        transactions; (3) royalty, patent, technical, and
14        copyright fees; (4) licensing fees; and (5) other
15        similar expenses and costs. For purposes of this
16        subparagraph, "intangible property" includes patents,
17        patent applications, trade names, trademarks, service
18        marks, copyrights, mask works, trade secrets, and
19        similar types of intangible assets.
20            This paragraph shall not apply to the following:
21                (i) any item of intangible expenses or costs
22            paid, accrued, or incurred, directly or
23            indirectly, from a transaction with a person who
24            is subject in a foreign country or state, other
25            than a state which requires mandatory unitary
26            reporting, to a tax on or measured by net income

 

 

10300HB4951sam002- 50 -LRB103 38094 HLH 74177 a

1            with respect to such item; or
2                (ii) any item of intangible expense or cost
3            paid, accrued, or incurred, directly or
4            indirectly, if the taxpayer can establish, based
5            on a preponderance of the evidence, both of the
6            following:
7                    (a) the person during the same taxable
8                year paid, accrued, or incurred, the
9                intangible expense or cost to a person that is
10                not a related member, and
11                    (b) the transaction giving rise to the
12                intangible expense or cost between the
13                taxpayer and the person did not have as a
14                principal purpose the avoidance of Illinois
15                income tax, and is paid pursuant to a contract
16                or agreement that reflects arm's-length terms;
17                or
18                (iii) any item of intangible expense or cost
19            paid, accrued, or incurred, directly or
20            indirectly, from a transaction with a person if
21            the taxpayer establishes by clear and convincing
22            evidence, that the adjustments are unreasonable;
23            or if the taxpayer and the Director agree in
24            writing to the application or use of an
25            alternative method of apportionment under Section
26            304(f);

 

 

10300HB4951sam002- 51 -LRB103 38094 HLH 74177 a

1                Nothing in this subsection shall preclude the
2            Director from making any other adjustment
3            otherwise allowed under Section 404 of this Act
4            for any tax year beginning after the effective
5            date of this amendment provided such adjustment is
6            made pursuant to regulation adopted by the
7            Department and such regulations provide methods
8            and standards by which the Department will utilize
9            its authority under Section 404 of this Act;
10            (E-14) For taxable years ending on or after
11        December 31, 2008, an amount equal to the amount of
12        insurance premium expenses and costs otherwise allowed
13        as a deduction in computing base income, and that were
14        paid, accrued, or incurred, directly or indirectly, to
15        a person who would be a member of the same unitary
16        business group but for the fact that the person is
17        prohibited under Section 1501(a)(27) from being
18        included in the unitary business group because he or
19        she is ordinarily required to apportion business
20        income under different subsections of Section 304. The
21        addition modification required by this subparagraph
22        shall be reduced to the extent that dividends were
23        included in base income of the unitary group for the
24        same taxable year and received by the taxpayer or by a
25        member of the taxpayer's unitary business group
26        (including amounts included in gross income under

 

 

10300HB4951sam002- 52 -LRB103 38094 HLH 74177 a

1        Sections 951 through 964 of the Internal Revenue Code
2        and amounts included in gross income under Section 78
3        of the Internal Revenue Code) with respect to the
4        stock of the same person to whom the premiums and costs
5        were directly or indirectly paid, incurred, or
6        accrued. The preceding sentence does not apply to the
7        extent that the same dividends caused a reduction to
8        the addition modification required under Section
9        203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
10        Act;
11            (E-15) For taxable years beginning after December
12        31, 2008, any deduction for dividends paid by a
13        captive real estate investment trust that is allowed
14        to a real estate investment trust under Section
15        857(b)(2)(B) of the Internal Revenue Code for
16        dividends paid;
17            (E-16) An amount equal to the credit allowable to
18        the taxpayer under Section 218(a) of this Act,
19        determined without regard to Section 218(c) of this
20        Act;
21            (E-17) For taxable years ending on or after
22        December 31, 2017, an amount equal to the deduction
23        allowed under Section 199 of the Internal Revenue Code
24        for the taxable year;
25            (E-18) for taxable years beginning after December
26        31, 2018, an amount equal to the deduction allowed

 

 

10300HB4951sam002- 53 -LRB103 38094 HLH 74177 a

1        under Section 250(a)(1)(A) of the Internal Revenue
2        Code for the taxable year;
3            (E-19) for taxable years ending on or after June
4        30, 2021, an amount equal to the deduction allowed
5        under Section 250(a)(1)(B)(i) of the Internal Revenue
6        Code for the taxable year;
7            (E-20) for taxable years ending on or after June
8        30, 2021, an amount equal to the deduction allowed
9        under Sections 243(e) and 245A(a) of the Internal
10        Revenue Code for the taxable year.
11    and by deducting from the total so obtained the sum of the
12    following amounts:
13            (F) An amount equal to the amount of any tax
14        imposed by this Act which was refunded to the taxpayer
15        and included in such total for the taxable year;
16            (G) An amount equal to any amount included in such
17        total under Section 78 of the Internal Revenue Code;
18            (H) In the case of a regulated investment company,
19        an amount equal to the amount of exempt interest
20        dividends as defined in subsection (b)(5) of Section
21        852 of the Internal Revenue Code, paid to shareholders
22        for the taxable year;
23            (I) With the exception of any amounts subtracted
24        under subparagraph (J), an amount equal to the sum of
25        all amounts disallowed as deductions by (i) Sections
26        171(a)(2) and 265(a)(2) and amounts disallowed as

 

 

10300HB4951sam002- 54 -LRB103 38094 HLH 74177 a

1        interest expense by Section 291(a)(3) of the Internal
2        Revenue Code, and all amounts of expenses allocable to
3        interest and disallowed as deductions by Section
4        265(a)(1) of the Internal Revenue Code; and (ii) for
5        taxable years ending on or after August 13, 1999,
6        Sections 171(a)(2), 265, 280C, 291(a)(3), and
7        832(b)(5)(B)(i) of the Internal Revenue Code, plus,
8        for tax years ending on or after December 31, 2011,
9        amounts disallowed as deductions by Section 45G(e)(3)
10        of the Internal Revenue Code and, for taxable years
11        ending on or after December 31, 2008, any amount
12        included in gross income under Section 87 of the
13        Internal Revenue Code and the policyholders' share of
14        tax-exempt interest of a life insurance company under
15        Section 807(a)(2)(B) of the Internal Revenue Code (in
16        the case of a life insurance company with gross income
17        from a decrease in reserves for the tax year) or
18        Section 807(b)(1)(B) of the Internal Revenue Code (in
19        the case of a life insurance company allowed a
20        deduction for an increase in reserves for the tax
21        year); the provisions of this subparagraph are exempt
22        from the provisions of Section 250;
23            (J) An amount equal to all amounts included in
24        such total which are exempt from taxation by this
25        State either by reason of its statutes or Constitution
26        or by reason of the Constitution, treaties or statutes

 

 

10300HB4951sam002- 55 -LRB103 38094 HLH 74177 a

1        of the United States; provided that, in the case of any
2        statute of this State that exempts income derived from
3        bonds or other obligations from the tax imposed under
4        this Act, the amount exempted shall be the interest
5        net of bond premium amortization;
6            (K) An amount equal to those dividends included in
7        such total which were paid by a corporation which
8        conducts business operations in a River Edge
9        Redevelopment Zone or zones created under the River
10        Edge Redevelopment Zone Act and conducts substantially
11        all of its operations in a River Edge Redevelopment
12        Zone or zones. This subparagraph (K) is exempt from
13        the provisions of Section 250;
14            (L) An amount equal to those dividends included in
15        such total that were paid by a corporation that
16        conducts business operations in a federally designated
17        Foreign Trade Zone or Sub-Zone and that is designated
18        a High Impact Business located in Illinois; provided
19        that dividends eligible for the deduction provided in
20        subparagraph (K) of paragraph 2 of this subsection
21        shall not be eligible for the deduction provided under
22        this subparagraph (L);
23            (M) For any taxpayer that is a financial
24        organization within the meaning of Section 304(c) of
25        this Act, an amount included in such total as interest
26        income from a loan or loans made by such taxpayer to a

 

 

10300HB4951sam002- 56 -LRB103 38094 HLH 74177 a

1        borrower, to the extent that such a loan is secured by
2        property which is eligible for the River Edge
3        Redevelopment Zone Investment Credit. To determine the
4        portion of a loan or loans that is secured by property
5        eligible for a Section 201(f) investment credit to the
6        borrower, the entire principal amount of the loan or
7        loans between the taxpayer and the borrower should be
8        divided into the basis of the Section 201(f)
9        investment credit property which secures the loan or
10        loans, using for this purpose the original basis of
11        such property on the date that it was placed in service
12        in the River Edge Redevelopment Zone. The subtraction
13        modification available to the taxpayer in any year
14        under this subsection shall be that portion of the
15        total interest paid by the borrower with respect to
16        such loan attributable to the eligible property as
17        calculated under the previous sentence. This
18        subparagraph (M) is exempt from the provisions of
19        Section 250;
20            (M-1) For any taxpayer that is a financial
21        organization within the meaning of Section 304(c) of
22        this Act, an amount included in such total as interest
23        income from a loan or loans made by such taxpayer to a
24        borrower, to the extent that such a loan is secured by
25        property which is eligible for the High Impact
26        Business Investment Credit. To determine the portion

 

 

10300HB4951sam002- 57 -LRB103 38094 HLH 74177 a

1        of a loan or loans that is secured by property eligible
2        for a Section 201(h) investment credit to the
3        borrower, the entire principal amount of the loan or
4        loans between the taxpayer and the borrower should be
5        divided into the basis of the Section 201(h)
6        investment credit property which secures the loan or
7        loans, using for this purpose the original basis of
8        such property on the date that it was placed in service
9        in a federally designated Foreign Trade Zone or
10        Sub-Zone located in Illinois. No taxpayer that is
11        eligible for the deduction provided in subparagraph
12        (M) of paragraph (2) of this subsection shall be
13        eligible for the deduction provided under this
14        subparagraph (M-1). The subtraction modification
15        available to taxpayers in any year under this
16        subsection shall be that portion of the total interest
17        paid by the borrower with respect to such loan
18        attributable to the eligible property as calculated
19        under the previous sentence;
20            (N) Two times any contribution made during the
21        taxable year to a designated zone organization to the
22        extent that the contribution (i) qualifies as a
23        charitable contribution under subsection (c) of
24        Section 170 of the Internal Revenue Code and (ii)
25        must, by its terms, be used for a project approved by
26        the Department of Commerce and Economic Opportunity

 

 

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1        under Section 11 of the Illinois Enterprise Zone Act
2        or under Section 10-10 of the River Edge Redevelopment
3        Zone Act. This subparagraph (N) is exempt from the
4        provisions of Section 250;
5            (O) An amount equal to: (i) 85% for taxable years
6        ending on or before December 31, 1992, or, a
7        percentage equal to the percentage allowable under
8        Section 243(a)(1) of the Internal Revenue Code of 1986
9        for taxable years ending after December 31, 1992, of
10        the amount by which dividends included in taxable
11        income and received from a corporation that is not
12        created or organized under the laws of the United
13        States or any state or political subdivision thereof,
14        including, for taxable years ending on or after
15        December 31, 1988, dividends received or deemed
16        received or paid or deemed paid under Sections 951
17        through 965 of the Internal Revenue Code, exceed the
18        amount of the modification provided under subparagraph
19        (G) of paragraph (2) of this subsection (b) which is
20        related to such dividends, and including, for taxable
21        years ending on or after December 31, 2008, dividends
22        received from a captive real estate investment trust;
23        plus (ii) 100% of the amount by which dividends,
24        included in taxable income and received, including,
25        for taxable years ending on or after December 31,
26        1988, dividends received or deemed received or paid or

 

 

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1        deemed paid under Sections 951 through 964 of the
2        Internal Revenue Code and including, for taxable years
3        ending on or after December 31, 2008, dividends
4        received from a captive real estate investment trust,
5        from any such corporation specified in clause (i) that
6        would but for the provisions of Section 1504(b)(3) of
7        the Internal Revenue Code be treated as a member of the
8        affiliated group which includes the dividend
9        recipient, exceed the amount of the modification
10        provided under subparagraph (G) of paragraph (2) of
11        this subsection (b) which is related to such
12        dividends. For taxable years ending on or after June
13        30, 2021, (i) for purposes of this subparagraph, the
14        term "dividend" does not include any amount treated as
15        a dividend under Section 1248 of the Internal Revenue
16        Code, and (ii) this subparagraph shall not apply to
17        dividends for which a deduction is allowed under
18        Section 245(a) of the Internal Revenue Code. This
19        subparagraph (O) is exempt from the provisions of
20        Section 250 of this Act;
21            (P) An amount equal to any contribution made to a
22        job training project established pursuant to the Tax
23        Increment Allocation Redevelopment Act;
24            (Q) An amount equal to the amount of the deduction
25        used to compute the federal income tax credit for
26        restoration of substantial amounts held under claim of

 

 

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1        right for the taxable year pursuant to Section 1341 of
2        the Internal Revenue Code;
3            (R) On and after July 20, 1999, in the case of an
4        attorney-in-fact with respect to whom an interinsurer
5        or a reciprocal insurer has made the election under
6        Section 835 of the Internal Revenue Code, 26 U.S.C.
7        835, an amount equal to the excess, if any, of the
8        amounts paid or incurred by that interinsurer or
9        reciprocal insurer in the taxable year to the
10        attorney-in-fact over the deduction allowed to that
11        interinsurer or reciprocal insurer with respect to the
12        attorney-in-fact under Section 835(b) of the Internal
13        Revenue Code for the taxable year; the provisions of
14        this subparagraph are exempt from the provisions of
15        Section 250;
16            (S) For taxable years ending on or after December
17        31, 1997, in the case of a Subchapter S corporation, an
18        amount equal to all amounts of income allocable to a
19        shareholder subject to the Personal Property Tax
20        Replacement Income Tax imposed by subsections (c) and
21        (d) of Section 201 of this Act, including amounts
22        allocable to organizations exempt from federal income
23        tax by reason of Section 501(a) of the Internal
24        Revenue Code. This subparagraph (S) is exempt from the
25        provisions of Section 250;
26            (T) For taxable years 2001 and thereafter, for the

 

 

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1        taxable year in which the bonus depreciation deduction
2        is taken on the taxpayer's federal income tax return
3        under subsection (k) of Section 168 of the Internal
4        Revenue Code and for each applicable taxable year
5        thereafter, an amount equal to "x", where:
6                (1) "y" equals the amount of the depreciation
7            deduction taken for the taxable year on the
8            taxpayer's federal income tax return on property
9            for which the bonus depreciation deduction was
10            taken in any year under subsection (k) of Section
11            168 of the Internal Revenue Code, but not
12            including the bonus depreciation deduction;
13                (2) for taxable years ending on or before
14            December 31, 2005, "x" equals "y" multiplied by 30
15            and then divided by 70 (or "y" multiplied by
16            0.429); and
17                (3) for taxable years ending after December
18            31, 2005:
19                    (i) for property on which a bonus
20                depreciation deduction of 30% of the adjusted
21                basis was taken, "x" equals "y" multiplied by
22                30 and then divided by 70 (or "y" multiplied
23                by 0.429);
24                    (ii) for property on which a bonus
25                depreciation deduction of 50% of the adjusted
26                basis was taken, "x" equals "y" multiplied by

 

 

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1                1.0;
2                    (iii) for property on which a bonus
3                depreciation deduction of 100% of the adjusted
4                basis was taken in a taxable year ending on or
5                after December 31, 2021, "x" equals the
6                depreciation deduction that would be allowed
7                on that property if the taxpayer had made the
8                election under Section 168(k)(7) of the
9                Internal Revenue Code to not claim bonus
10                depreciation on that property; and
11                    (iv) for property on which a bonus
12                depreciation deduction of a percentage other
13                than 30%, 50% or 100% of the adjusted basis
14                was taken in a taxable year ending on or after
15                December 31, 2021, "x" equals "y" multiplied
16                by 100 times the percentage bonus depreciation
17                on the property (that is, 100(bonus%)) and
18                then divided by 100 times 1 minus the
19                percentage bonus depreciation on the property
20                (that is, 100(1-bonus%)).
21            The aggregate amount deducted under this
22        subparagraph in all taxable years for any one piece of
23        property may not exceed the amount of the bonus
24        depreciation deduction taken on that property on the
25        taxpayer's federal income tax return under subsection
26        (k) of Section 168 of the Internal Revenue Code. This

 

 

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1        subparagraph (T) is exempt from the provisions of
2        Section 250;
3            (U) If the taxpayer sells, transfers, abandons, or
4        otherwise disposes of property for which the taxpayer
5        was required in any taxable year to make an addition
6        modification under subparagraph (E-10), then an amount
7        equal to that addition modification.
8            If the taxpayer continues to own property through
9        the last day of the last tax year for which a
10        subtraction is allowed with respect to that property
11        under subparagraph (T) and for which the taxpayer was
12        required in any taxable year to make an addition
13        modification under subparagraph (E-10), then an amount
14        equal to that addition modification.
15            The taxpayer is allowed to take the deduction
16        under this subparagraph only once with respect to any
17        one piece of property.
18            This subparagraph (U) is exempt from the
19        provisions of Section 250;
20            (V) The amount of: (i) any interest income (net of
21        the deductions allocable thereto) taken into account
22        for the taxable year with respect to a transaction
23        with a taxpayer that is required to make an addition
24        modification with respect to such transaction under
25        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
26        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed

 

 

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1        the amount of such addition modification, (ii) any
2        income from intangible property (net of the deductions
3        allocable thereto) taken into account for the taxable
4        year with respect to a transaction with a taxpayer
5        that is required to make an addition modification with
6        respect to such transaction under Section
7        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
8        203(d)(2)(D-8), but not to exceed the amount of such
9        addition modification, and (iii) any insurance premium
10        income (net of deductions allocable thereto) taken
11        into account for the taxable year with respect to a
12        transaction with a taxpayer that is required to make
13        an addition modification with respect to such
14        transaction under Section 203(a)(2)(D-19), Section
15        203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
16        203(d)(2)(D-9), but not to exceed the amount of that
17        addition modification. This subparagraph (V) is exempt
18        from the provisions of Section 250;
19            (W) An amount equal to the interest income taken
20        into account for the taxable year (net of the
21        deductions allocable thereto) with respect to
22        transactions with (i) a foreign person who would be a
23        member of the taxpayer's unitary business group but
24        for the fact that the foreign person's business
25        activity outside the United States is 80% or more of
26        that person's total business activity and (ii) for

 

 

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1        taxable years ending on or after December 31, 2008, to
2        a person who would be a member of the same unitary
3        business group but for the fact that the person is
4        prohibited under Section 1501(a)(27) from being
5        included in the unitary business group because he or
6        she is ordinarily required to apportion business
7        income under different subsections of Section 304, but
8        not to exceed the addition modification required to be
9        made for the same taxable year under Section
10        203(b)(2)(E-12) for interest paid, accrued, or
11        incurred, directly or indirectly, to the same person.
12        This subparagraph (W) is exempt from the provisions of
13        Section 250;
14            (X) An amount equal to the income from intangible
15        property taken into account for the taxable year (net
16        of the deductions allocable thereto) with respect to
17        transactions with (i) a foreign person who would be a
18        member of the taxpayer's unitary business group but
19        for the fact that the foreign person's business
20        activity outside the United States is 80% or more of
21        that person's total business activity and (ii) for
22        taxable years ending on or after December 31, 2008, to
23        a person who would be a member of the same unitary
24        business group but for the fact that the person is
25        prohibited under Section 1501(a)(27) from being
26        included in the unitary business group because he or

 

 

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1        she is ordinarily required to apportion business
2        income under different subsections of Section 304, but
3        not to exceed the addition modification required to be
4        made for the same taxable year under Section
5        203(b)(2)(E-13) for intangible expenses and costs
6        paid, accrued, or incurred, directly or indirectly, to
7        the same foreign person. This subparagraph (X) is
8        exempt from the provisions of Section 250;
9            (Y) For taxable years ending on or after December
10        31, 2011, in the case of a taxpayer who was required to
11        add back any insurance premiums under Section
12        203(b)(2)(E-14), such taxpayer may elect to subtract
13        that part of a reimbursement received from the
14        insurance company equal to the amount of the expense
15        or loss (including expenses incurred by the insurance
16        company) that would have been taken into account as a
17        deduction for federal income tax purposes if the
18        expense or loss had been uninsured. If a taxpayer
19        makes the election provided for by this subparagraph
20        (Y), the insurer to which the premiums were paid must
21        add back to income the amount subtracted by the
22        taxpayer pursuant to this subparagraph (Y). This
23        subparagraph (Y) is exempt from the provisions of
24        Section 250;
25            (Z) The difference between the nondeductible
26        controlled foreign corporation dividends under Section

 

 

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1        965(e)(3) of the Internal Revenue Code over the
2        taxable income of the taxpayer, computed without
3        regard to Section 965(e)(2)(A) of the Internal Revenue
4        Code, and without regard to any net operating loss
5        deduction. This subparagraph (Z) is exempt from the
6        provisions of Section 250; and
7            (AA) For taxable years beginning on or after
8        January 1, 2023, for any cannabis establishment
9        operating in this State and licensed under the
10        Cannabis Regulation and Tax Act or any cannabis
11        cultivation center or medical cannabis dispensing
12        organization operating in this State and licensed
13        under the Compassionate Use of Medical Cannabis
14        Program Act, an amount equal to the deductions that
15        were disallowed under Section 280E of the Internal
16        Revenue Code for the taxable year and that would not be
17        added back under this subsection. The provisions of
18        this subparagraph (AA) are exempt from the provisions
19        of Section 250.
20        (3) Special rule. For purposes of paragraph (2)(A),
21    "gross income" in the case of a life insurance company,
22    for tax years ending on and after December 31, 1994, and
23    prior to December 31, 2011, shall mean the gross
24    investment income for the taxable year and, for tax years
25    ending on or after December 31, 2011, shall mean all
26    amounts included in life insurance gross income under

 

 

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1    Section 803(a)(3) of the Internal Revenue Code.
 
2    (c) Trusts and estates.
3        (1) In general. In the case of a trust or estate, base
4    income means an amount equal to the taxpayer's taxable
5    income for the taxable year as modified by paragraph (2).
6        (2) Modifications. Subject to the provisions of
7    paragraph (3), the taxable income referred to in paragraph
8    (1) shall be modified by adding thereto the sum of the
9    following amounts:
10            (A) An amount equal to all amounts paid or accrued
11        to the taxpayer as interest or dividends during the
12        taxable year to the extent excluded from gross income
13        in the computation of taxable income;
14            (B) In the case of (i) an estate, $600; (ii) a
15        trust which, under its governing instrument, is
16        required to distribute all of its income currently,
17        $300; and (iii) any other trust, $100, but in each such
18        case, only to the extent such amount was deducted in
19        the computation of taxable income;
20            (C) An amount equal to the amount of tax imposed by
21        this Act to the extent deducted from gross income in
22        the computation of taxable income for the taxable
23        year;
24            (D) The amount of any net operating loss deduction
25        taken in arriving at taxable income, other than a net

 

 

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1        operating loss carried forward from a taxable year
2        ending prior to December 31, 1986;
3            (E) For taxable years in which a net operating
4        loss carryback or carryforward from a taxable year
5        ending prior to December 31, 1986 is an element of
6        taxable income under paragraph (1) of subsection (e)
7        or subparagraph (E) of paragraph (2) of subsection
8        (e), the amount by which addition modifications other
9        than those provided by this subparagraph (E) exceeded
10        subtraction modifications in such taxable year, with
11        the following limitations applied in the order that
12        they are listed:
13                (i) the addition modification relating to the
14            net operating loss carried back or forward to the
15            taxable year from any taxable year ending prior to
16            December 31, 1986 shall be reduced by the amount
17            of addition modification under this subparagraph
18            (E) which related to that net operating loss and
19            which was taken into account in calculating the
20            base income of an earlier taxable year, and
21                (ii) the addition modification relating to the
22            net operating loss carried back or forward to the
23            taxable year from any taxable year ending prior to
24            December 31, 1986 shall not exceed the amount of
25            such carryback or carryforward;
26            For taxable years in which there is a net

 

 

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1        operating loss carryback or carryforward from more
2        than one other taxable year ending prior to December
3        31, 1986, the addition modification provided in this
4        subparagraph (E) shall be the sum of the amounts
5        computed independently under the preceding provisions
6        of this subparagraph (E) for each such taxable year;
7            (F) For taxable years ending on or after January
8        1, 1989, an amount equal to the tax deducted pursuant
9        to Section 164 of the Internal Revenue Code if the
10        trust or estate is claiming the same tax for purposes
11        of the Illinois foreign tax credit under Section 601
12        of this Act;
13            (G) An amount equal to the amount of the capital
14        gain deduction allowable under the Internal Revenue
15        Code, to the extent deducted from gross income in the
16        computation of taxable income;
17            (G-5) For taxable years ending after December 31,
18        1997, an amount equal to any eligible remediation
19        costs that the trust or estate deducted in computing
20        adjusted gross income and for which the trust or
21        estate claims a credit under subsection (l) of Section
22        201;
23            (G-10) For taxable years 2001 and thereafter, an
24        amount equal to the bonus depreciation deduction taken
25        on the taxpayer's federal income tax return for the
26        taxable year under subsection (k) of Section 168 of

 

 

10300HB4951sam002- 71 -LRB103 38094 HLH 74177 a

1        the Internal Revenue Code; and
2            (G-11) If the taxpayer sells, transfers, abandons,
3        or otherwise disposes of property for which the
4        taxpayer was required in any taxable year to make an
5        addition modification under subparagraph (G-10), then
6        an amount equal to the aggregate amount of the
7        deductions taken in all taxable years under
8        subparagraph (R) with respect to that property.
9            If the taxpayer continues to own property through
10        the last day of the last tax year for which a
11        subtraction is allowed with respect to that property
12        under subparagraph (R) and for which the taxpayer was
13        allowed in any taxable year to make a subtraction
14        modification under subparagraph (R), then an amount
15        equal to that subtraction modification.
16            The taxpayer is required to make the addition
17        modification under this subparagraph only once with
18        respect to any one piece of property;
19            (G-12) An amount equal to the amount otherwise
20        allowed as a deduction in computing base income for
21        interest paid, accrued, or incurred, directly or
22        indirectly, (i) for taxable years ending on or after
23        December 31, 2004, to a foreign person who would be a
24        member of the same unitary business group but for the
25        fact that the foreign person's business activity
26        outside the United States is 80% or more of the foreign

 

 

10300HB4951sam002- 72 -LRB103 38094 HLH 74177 a

1        person's total business activity and (ii) for taxable
2        years ending on or after December 31, 2008, to a person
3        who would be a member of the same unitary business
4        group but for the fact that the person is prohibited
5        under Section 1501(a)(27) from being included in the
6        unitary business group because he or she is ordinarily
7        required to apportion business income under different
8        subsections of Section 304. The addition modification
9        required by this subparagraph shall be reduced to the
10        extent that dividends were included in base income of
11        the unitary group for the same taxable year and
12        received by the taxpayer or by a member of the
13        taxpayer's unitary business group (including amounts
14        included in gross income pursuant to Sections 951
15        through 964 of the Internal Revenue Code and amounts
16        included in gross income under Section 78 of the
17        Internal Revenue Code) with respect to the stock of
18        the same person to whom the interest was paid,
19        accrued, or incurred.
20            This paragraph shall not apply to the following:
21                (i) an item of interest paid, accrued, or
22            incurred, directly or indirectly, to a person who
23            is subject in a foreign country or state, other
24            than a state which requires mandatory unitary
25            reporting, to a tax on or measured by net income
26            with respect to such interest; or

 

 

10300HB4951sam002- 73 -LRB103 38094 HLH 74177 a

1                (ii) an item of interest paid, accrued, or
2            incurred, directly or indirectly, to a person if
3            the taxpayer can establish, based on a
4            preponderance of the evidence, both of the
5            following:
6                    (a) the person, during the same taxable
7                year, paid, accrued, or incurred, the interest
8                to a person that is not a related member, and
9                    (b) the transaction giving rise to the
10                interest expense between the taxpayer and the
11                person did not have as a principal purpose the
12                avoidance of Illinois income tax, and is paid
13                pursuant to a contract or agreement that
14                reflects an arm's-length interest rate and
15                terms; or
16                (iii) the taxpayer can establish, based on
17            clear and convincing evidence, that the interest
18            paid, accrued, or incurred relates to a contract
19            or agreement entered into at arm's-length rates
20            and terms and the principal purpose for the
21            payment is not federal or Illinois tax avoidance;
22            or
23                (iv) an item of interest paid, accrued, or
24            incurred, directly or indirectly, to a person if
25            the taxpayer establishes by clear and convincing
26            evidence that the adjustments are unreasonable; or

 

 

10300HB4951sam002- 74 -LRB103 38094 HLH 74177 a

1            if the taxpayer and the Director agree in writing
2            to the application or use of an alternative method
3            of apportionment under Section 304(f).
4                Nothing in this subsection shall preclude the
5            Director from making any other adjustment
6            otherwise allowed under Section 404 of this Act
7            for any tax year beginning after the effective
8            date of this amendment provided such adjustment is
9            made pursuant to regulation adopted by the
10            Department and such regulations provide methods
11            and standards by which the Department will utilize
12            its authority under Section 404 of this Act;
13            (G-13) An amount equal to the amount of intangible
14        expenses and costs otherwise allowed as a deduction in
15        computing base income, and that were paid, accrued, or
16        incurred, directly or indirectly, (i) for taxable
17        years ending on or after December 31, 2004, to a
18        foreign person who would be a member of the same
19        unitary business group but for the fact that the
20        foreign person's business activity outside the United
21        States is 80% or more of that person's total business
22        activity and (ii) for taxable years ending on or after
23        December 31, 2008, to a person who would be a member of
24        the same unitary business group but for the fact that
25        the person is prohibited under Section 1501(a)(27)
26        from being included in the unitary business group

 

 

10300HB4951sam002- 75 -LRB103 38094 HLH 74177 a

1        because he or she is ordinarily required to apportion
2        business income under different subsections of Section
3        304. The addition modification required by this
4        subparagraph shall be reduced to the extent that
5        dividends were included in base income of the unitary
6        group for the same taxable year and received by the
7        taxpayer or by a member of the taxpayer's unitary
8        business group (including amounts included in gross
9        income pursuant to Sections 951 through 964 of the
10        Internal Revenue Code and amounts included in gross
11        income under Section 78 of the Internal Revenue Code)
12        with respect to the stock of the same person to whom
13        the intangible expenses and costs were directly or
14        indirectly paid, incurred, or accrued. The preceding
15        sentence shall not apply to the extent that the same
16        dividends caused a reduction to the addition
17        modification required under Section 203(c)(2)(G-12) of
18        this Act. As used in this subparagraph, the term
19        "intangible expenses and costs" includes: (1)
20        expenses, losses, and costs for or related to the
21        direct or indirect acquisition, use, maintenance or
22        management, ownership, sale, exchange, or any other
23        disposition of intangible property; (2) losses
24        incurred, directly or indirectly, from factoring
25        transactions or discounting transactions; (3) royalty,
26        patent, technical, and copyright fees; (4) licensing

 

 

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1        fees; and (5) other similar expenses and costs. For
2        purposes of this subparagraph, "intangible property"
3        includes patents, patent applications, trade names,
4        trademarks, service marks, copyrights, mask works,
5        trade secrets, and similar types of intangible assets.
6            This paragraph shall not apply to the following:
7                (i) any item of intangible expenses or costs
8            paid, accrued, or incurred, directly or
9            indirectly, from a transaction with a person who
10            is subject in a foreign country or state, other
11            than a state which requires mandatory unitary
12            reporting, to a tax on or measured by net income
13            with respect to such item; or
14                (ii) any item of intangible expense or cost
15            paid, accrued, or incurred, directly or
16            indirectly, if the taxpayer can establish, based
17            on a preponderance of the evidence, both of the
18            following:
19                    (a) the person during the same taxable
20                year paid, accrued, or incurred, the
21                intangible expense or cost to a person that is
22                not a related member, and
23                    (b) the transaction giving rise to the
24                intangible expense or cost between the
25                taxpayer and the person did not have as a
26                principal purpose the avoidance of Illinois

 

 

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1                income tax, and is paid pursuant to a contract
2                or agreement that reflects arm's-length terms;
3                or
4                (iii) any item of intangible expense or cost
5            paid, accrued, or incurred, directly or
6            indirectly, from a transaction with a person if
7            the taxpayer establishes by clear and convincing
8            evidence, that the adjustments are unreasonable;
9            or if the taxpayer and the Director agree in
10            writing to the application or use of an
11            alternative method of apportionment under Section
12            304(f);
13                Nothing in this subsection shall preclude the
14            Director from making any other adjustment
15            otherwise allowed under Section 404 of this Act
16            for any tax year beginning after the effective
17            date of this amendment provided such adjustment is
18            made pursuant to regulation adopted by the
19            Department and such regulations provide methods
20            and standards by which the Department will utilize
21            its authority under Section 404 of this Act;
22            (G-14) For taxable years ending on or after
23        December 31, 2008, an amount equal to the amount of
24        insurance premium expenses and costs otherwise allowed
25        as a deduction in computing base income, and that were
26        paid, accrued, or incurred, directly or indirectly, to

 

 

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1        a person who would be a member of the same unitary
2        business group but for the fact that the person is
3        prohibited under Section 1501(a)(27) from being
4        included in the unitary business group because he or
5        she is ordinarily required to apportion business
6        income under different subsections of Section 304. The
7        addition modification required by this subparagraph
8        shall be reduced to the extent that dividends were
9        included in base income of the unitary group for the
10        same taxable year and received by the taxpayer or by a
11        member of the taxpayer's unitary business group
12        (including amounts included in gross income under
13        Sections 951 through 964 of the Internal Revenue Code
14        and amounts included in gross income under Section 78
15        of the Internal Revenue Code) with respect to the
16        stock of the same person to whom the premiums and costs
17        were directly or indirectly paid, incurred, or
18        accrued. The preceding sentence does not apply to the
19        extent that the same dividends caused a reduction to
20        the addition modification required under Section
21        203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
22        Act;
23            (G-15) An amount equal to the credit allowable to
24        the taxpayer under Section 218(a) of this Act,
25        determined without regard to Section 218(c) of this
26        Act;

 

 

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1            (G-16) For taxable years ending on or after
2        December 31, 2017, an amount equal to the deduction
3        allowed under Section 199 of the Internal Revenue Code
4        for the taxable year;
5    and by deducting from the total so obtained the sum of the
6    following amounts:
7            (H) An amount equal to all amounts included in
8        such total pursuant to the provisions of Sections
9        402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
10        of the Internal Revenue Code or included in such total
11        as distributions under the provisions of any
12        retirement or disability plan for employees of any
13        governmental agency or unit, or retirement payments to
14        retired partners, which payments are excluded in
15        computing net earnings from self employment by Section
16        1402 of the Internal Revenue Code and regulations
17        adopted pursuant thereto;
18            (I) The valuation limitation amount;
19            (J) An amount equal to the amount of any tax
20        imposed by this Act which was refunded to the taxpayer
21        and included in such total for the taxable year;
22            (K) An amount equal to all amounts included in
23        taxable income as modified by subparagraphs (A), (B),
24        (C), (D), (E), (F) and (G) which are exempt from
25        taxation by this State either by reason of its
26        statutes or Constitution or by reason of the

 

 

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1        Constitution, treaties or statutes of the United
2        States; provided that, in the case of any statute of
3        this State that exempts income derived from bonds or
4        other obligations from the tax imposed under this Act,
5        the amount exempted shall be the interest net of bond
6        premium amortization;
7            (L) With the exception of any amounts subtracted
8        under subparagraph (K), an amount equal to the sum of
9        all amounts disallowed as deductions by (i) Sections
10        171(a)(2) and 265(a)(2) of the Internal Revenue Code,
11        and all amounts of expenses allocable to interest and
12        disallowed as deductions by Section 265(a)(1) of the
13        Internal Revenue Code; and (ii) for taxable years
14        ending on or after August 13, 1999, Sections
15        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
16        Internal Revenue Code, plus, (iii) for taxable years
17        ending on or after December 31, 2011, Section
18        45G(e)(3) of the Internal Revenue Code and, for
19        taxable years ending on or after December 31, 2008,
20        any amount included in gross income under Section 87
21        of the Internal Revenue Code; the provisions of this
22        subparagraph are exempt from the provisions of Section
23        250;
24            (M) An amount equal to those dividends included in
25        such total which were paid by a corporation which
26        conducts business operations in a River Edge

 

 

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1        Redevelopment Zone or zones created under the River
2        Edge Redevelopment Zone Act and conducts substantially
3        all of its operations in a River Edge Redevelopment
4        Zone or zones. This subparagraph (M) is exempt from
5        the provisions of Section 250;
6            (N) An amount equal to any contribution made to a
7        job training project established pursuant to the Tax
8        Increment Allocation Redevelopment Act;
9            (O) An amount equal to those dividends included in
10        such total that were paid by a corporation that
11        conducts business operations in a federally designated
12        Foreign Trade Zone or Sub-Zone and that is designated
13        a High Impact Business located in Illinois; provided
14        that dividends eligible for the deduction provided in
15        subparagraph (M) of paragraph (2) of this subsection
16        shall not be eligible for the deduction provided under
17        this subparagraph (O);
18            (P) An amount equal to the amount of the deduction
19        used to compute the federal income tax credit for
20        restoration of substantial amounts held under claim of
21        right for the taxable year pursuant to Section 1341 of
22        the Internal Revenue Code;
23            (Q) For taxable year 1999 and thereafter, an
24        amount equal to the amount of any (i) distributions,
25        to the extent includible in gross income for federal
26        income tax purposes, made to the taxpayer because of

 

 

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1        his or her status as a victim of persecution for racial
2        or religious reasons by Nazi Germany or any other Axis
3        regime or as an heir of the victim and (ii) items of
4        income, to the extent includible in gross income for
5        federal income tax purposes, attributable to, derived
6        from or in any way related to assets stolen from,
7        hidden from, or otherwise lost to a victim of
8        persecution for racial or religious reasons by Nazi
9        Germany or any other Axis regime immediately prior to,
10        during, and immediately after World War II, including,
11        but not limited to, interest on the proceeds
12        receivable as insurance under policies issued to a
13        victim of persecution for racial or religious reasons
14        by Nazi Germany or any other Axis regime by European
15        insurance companies immediately prior to and during
16        World War II; provided, however, this subtraction from
17        federal adjusted gross income does not apply to assets
18        acquired with such assets or with the proceeds from
19        the sale of such assets; provided, further, this
20        paragraph shall only apply to a taxpayer who was the
21        first recipient of such assets after their recovery
22        and who is a victim of persecution for racial or
23        religious reasons by Nazi Germany or any other Axis
24        regime or as an heir of the victim. The amount of and
25        the eligibility for any public assistance, benefit, or
26        similar entitlement is not affected by the inclusion

 

 

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1        of items (i) and (ii) of this paragraph in gross income
2        for federal income tax purposes. This paragraph is
3        exempt from the provisions of Section 250;
4            (R) For taxable years 2001 and thereafter, for the
5        taxable year in which the bonus depreciation deduction
6        is taken on the taxpayer's federal income tax return
7        under subsection (k) of Section 168 of the Internal
8        Revenue Code and for each applicable taxable year
9        thereafter, an amount equal to "x", where:
10                (1) "y" equals the amount of the depreciation
11            deduction taken for the taxable year on the
12            taxpayer's federal income tax return on property
13            for which the bonus depreciation deduction was
14            taken in any year under subsection (k) of Section
15            168 of the Internal Revenue Code, but not
16            including the bonus depreciation deduction;
17                (2) for taxable years ending on or before
18            December 31, 2005, "x" equals "y" multiplied by 30
19            and then divided by 70 (or "y" multiplied by
20            0.429); and
21                (3) for taxable years ending after December
22            31, 2005:
23                    (i) for property on which a bonus
24                depreciation deduction of 30% of the adjusted
25                basis was taken, "x" equals "y" multiplied by
26                30 and then divided by 70 (or "y" multiplied

 

 

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1                by 0.429);
2                    (ii) for property on which a bonus
3                depreciation deduction of 50% of the adjusted
4                basis was taken, "x" equals "y" multiplied by
5                1.0;
6                    (iii) for property on which a bonus
7                depreciation deduction of 100% of the adjusted
8                basis was taken in a taxable year ending on or
9                after December 31, 2021, "x" equals the
10                depreciation deduction that would be allowed
11                on that property if the taxpayer had made the
12                election under Section 168(k)(7) of the
13                Internal Revenue Code to not claim bonus
14                depreciation on that property; and
15                    (iv) for property on which a bonus
16                depreciation deduction of a percentage other
17                than 30%, 50% or 100% of the adjusted basis
18                was taken in a taxable year ending on or after
19                December 31, 2021, "x" equals "y" multiplied
20                by 100 times the percentage bonus depreciation
21                on the property (that is, 100(bonus%)) and
22                then divided by 100 times 1 minus the
23                percentage bonus depreciation on the property
24                (that is, 100(1-bonus%)).
25            The aggregate amount deducted under this
26        subparagraph in all taxable years for any one piece of

 

 

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1        property may not exceed the amount of the bonus
2        depreciation deduction taken on that property on the
3        taxpayer's federal income tax return under subsection
4        (k) of Section 168 of the Internal Revenue Code. This
5        subparagraph (R) is exempt from the provisions of
6        Section 250;
7            (S) If the taxpayer sells, transfers, abandons, or
8        otherwise disposes of property for which the taxpayer
9        was required in any taxable year to make an addition
10        modification under subparagraph (G-10), then an amount
11        equal to that addition modification.
12            If the taxpayer continues to own property through
13        the last day of the last tax year for which a
14        subtraction is allowed with respect to that property
15        under subparagraph (R) and for which the taxpayer was
16        required in any taxable year to make an addition
17        modification under subparagraph (G-10), then an amount
18        equal to that addition modification.
19            The taxpayer is allowed to take the deduction
20        under this subparagraph only once with respect to any
21        one piece of property.
22            This subparagraph (S) is exempt from the
23        provisions of Section 250;
24            (T) The amount of (i) any interest income (net of
25        the deductions allocable thereto) taken into account
26        for the taxable year with respect to a transaction

 

 

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1        with a taxpayer that is required to make an addition
2        modification with respect to such transaction under
3        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
4        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
5        the amount of such addition modification and (ii) any
6        income from intangible property (net of the deductions
7        allocable thereto) taken into account for the taxable
8        year with respect to a transaction with a taxpayer
9        that is required to make an addition modification with
10        respect to such transaction under Section
11        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
12        203(d)(2)(D-8), but not to exceed the amount of such
13        addition modification. This subparagraph (T) is exempt
14        from the provisions of Section 250;
15            (U) An amount equal to the interest income taken
16        into account for the taxable year (net of the
17        deductions allocable thereto) with respect to
18        transactions with (i) a foreign person who would be a
19        member of the taxpayer's unitary business group but
20        for the fact the foreign person's business activity
21        outside the United States is 80% or more of that
22        person's total business activity and (ii) for taxable
23        years ending on or after December 31, 2008, to a person
24        who would be a member of the same unitary business
25        group but for the fact that the person is prohibited
26        under Section 1501(a)(27) from being included in the

 

 

10300HB4951sam002- 87 -LRB103 38094 HLH 74177 a

1        unitary business group because he or she is ordinarily
2        required to apportion business income under different
3        subsections of Section 304, but not to exceed the
4        addition modification required to be made for the same
5        taxable year under Section 203(c)(2)(G-12) for
6        interest paid, accrued, or incurred, directly or
7        indirectly, to the same person. This subparagraph (U)
8        is exempt from the provisions of Section 250;
9            (V) An amount equal to the income from intangible
10        property taken into account for the taxable year (net
11        of the deductions allocable thereto) with respect to
12        transactions with (i) a foreign person who would be a
13        member of the taxpayer's unitary business group but
14        for the fact that the foreign person's business
15        activity outside the United States is 80% or more of
16        that person's total business activity and (ii) for
17        taxable years ending on or after December 31, 2008, to
18        a person who would be a member of the same unitary
19        business group but for the fact that the person is
20        prohibited under Section 1501(a)(27) from being
21        included in the unitary business group because he or
22        she is ordinarily required to apportion business
23        income under different subsections of Section 304, but
24        not to exceed the addition modification required to be
25        made for the same taxable year under Section
26        203(c)(2)(G-13) for intangible expenses and costs

 

 

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1        paid, accrued, or incurred, directly or indirectly, to
2        the same foreign person. This subparagraph (V) is
3        exempt from the provisions of Section 250;
4            (W) in the case of an estate, an amount equal to
5        all amounts included in such total pursuant to the
6        provisions of Section 111 of the Internal Revenue Code
7        as a recovery of items previously deducted by the
8        decedent from adjusted gross income in the computation
9        of taxable income. This subparagraph (W) is exempt
10        from Section 250;
11            (X) an amount equal to the refund included in such
12        total of any tax deducted for federal income tax
13        purposes, to the extent that deduction was added back
14        under subparagraph (F). This subparagraph (X) is
15        exempt from the provisions of Section 250;
16            (Y) For taxable years ending on or after December
17        31, 2011, in the case of a taxpayer who was required to
18        add back any insurance premiums under Section
19        203(c)(2)(G-14), such taxpayer may elect to subtract
20        that part of a reimbursement received from the
21        insurance company equal to the amount of the expense
22        or loss (including expenses incurred by the insurance
23        company) that would have been taken into account as a
24        deduction for federal income tax purposes if the
25        expense or loss had been uninsured. If a taxpayer
26        makes the election provided for by this subparagraph

 

 

10300HB4951sam002- 89 -LRB103 38094 HLH 74177 a

1        (Y), the insurer to which the premiums were paid must
2        add back to income the amount subtracted by the
3        taxpayer pursuant to this subparagraph (Y). This
4        subparagraph (Y) is exempt from the provisions of
5        Section 250;
6            (Z) For taxable years beginning after December 31,
7        2018 and before January 1, 2026, the amount of excess
8        business loss of the taxpayer disallowed as a
9        deduction by Section 461(l)(1)(B) of the Internal
10        Revenue Code; and
11            (AA) For taxable years beginning on or after
12        January 1, 2023, for any cannabis establishment
13        operating in this State and licensed under the
14        Cannabis Regulation and Tax Act or any cannabis
15        cultivation center or medical cannabis dispensing
16        organization operating in this State and licensed
17        under the Compassionate Use of Medical Cannabis
18        Program Act, an amount equal to the deductions that
19        were disallowed under Section 280E of the Internal
20        Revenue Code for the taxable year and that would not be
21        added back under this subsection. The provisions of
22        this subparagraph (AA) are exempt from the provisions
23        of Section 250.
24        (3) Limitation. The amount of any modification
25    otherwise required under this subsection shall, under
26    regulations prescribed by the Department, be adjusted by

 

 

10300HB4951sam002- 90 -LRB103 38094 HLH 74177 a

1    any amounts included therein which were properly paid,
2    credited, or required to be distributed, or permanently
3    set aside for charitable purposes pursuant to Internal
4    Revenue Code Section 642(c) during the taxable year.
 
5    (d) Partnerships.
6        (1) In general. In the case of a partnership, base
7    income means an amount equal to the taxpayer's taxable
8    income for the taxable year as modified by paragraph (2).
9        (2) Modifications. The taxable income referred to in
10    paragraph (1) shall be modified by adding thereto the sum
11    of the following amounts:
12            (A) An amount equal to all amounts paid or accrued
13        to the taxpayer as interest or dividends during the
14        taxable year to the extent excluded from gross income
15        in the computation of taxable income;
16            (B) An amount equal to the amount of tax imposed by
17        this Act to the extent deducted from gross income for
18        the taxable year;
19            (C) The amount of deductions allowed to the
20        partnership pursuant to Section 707 (c) of the
21        Internal Revenue Code in calculating its taxable
22        income;
23            (D) An amount equal to the amount of the capital
24        gain deduction allowable under the Internal Revenue
25        Code, to the extent deducted from gross income in the

 

 

10300HB4951sam002- 91 -LRB103 38094 HLH 74177 a

1        computation of taxable income;
2            (D-5) For taxable years 2001 and thereafter, an
3        amount equal to the bonus depreciation deduction taken
4        on the taxpayer's federal income tax return for the
5        taxable year under subsection (k) of Section 168 of
6        the Internal Revenue Code;
7            (D-6) If the taxpayer sells, transfers, abandons,
8        or otherwise disposes of property for which the
9        taxpayer was required in any taxable year to make an
10        addition modification under subparagraph (D-5), then
11        an amount equal to the aggregate amount of the
12        deductions taken in all taxable years under
13        subparagraph (O) with respect to that property.
14            If the taxpayer continues to own property through
15        the last day of the last tax year for which a
16        subtraction is allowed with respect to that property
17        under subparagraph (O) and for which the taxpayer was
18        allowed in any taxable year to make a subtraction
19        modification under subparagraph (O), then an amount
20        equal to that subtraction modification.
21            The taxpayer is required to make the addition
22        modification under this subparagraph only once with
23        respect to any one piece of property;
24            (D-7) An amount equal to the amount otherwise
25        allowed as a deduction in computing base income for
26        interest paid, accrued, or incurred, directly or

 

 

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1        indirectly, (i) for taxable years ending on or after
2        December 31, 2004, to a foreign person who would be a
3        member of the same unitary business group but for the
4        fact the foreign person's business activity outside
5        the United States is 80% or more of the foreign
6        person's total business activity and (ii) for taxable
7        years ending on or after December 31, 2008, to a person
8        who would be a member of the same unitary business
9        group but for the fact that the person is prohibited
10        under Section 1501(a)(27) from being included in the
11        unitary business group because he or she is ordinarily
12        required to apportion business income under different
13        subsections of Section 304. The addition modification
14        required by this subparagraph shall be reduced to the
15        extent that dividends were included in base income of
16        the unitary group for the same taxable year and
17        received by the taxpayer or by a member of the
18        taxpayer's unitary business group (including amounts
19        included in gross income pursuant to Sections 951
20        through 964 of the Internal Revenue Code and amounts
21        included in gross income under Section 78 of the
22        Internal Revenue Code) with respect to the stock of
23        the same person to whom the interest was paid,
24        accrued, or incurred.
25            This paragraph shall not apply to the following:
26                (i) an item of interest paid, accrued, or

 

 

10300HB4951sam002- 93 -LRB103 38094 HLH 74177 a

1            incurred, directly or indirectly, to a person who
2            is subject in a foreign country or state, other
3            than a state which requires mandatory unitary
4            reporting, to a tax on or measured by net income
5            with respect to such interest; or
6                (ii) an item of interest paid, accrued, or
7            incurred, directly or indirectly, to a person if
8            the taxpayer can establish, based on a
9            preponderance of the evidence, both of the
10            following:
11                    (a) the person, during the same taxable
12                year, paid, accrued, or incurred, the interest
13                to a person that is not a related member, and
14                    (b) the transaction giving rise to the
15                interest expense between the taxpayer and the
16                person did not have as a principal purpose the
17                avoidance of Illinois income tax, and is paid
18                pursuant to a contract or agreement that
19                reflects an arm's-length interest rate and
20                terms; or
21                (iii) the taxpayer can establish, based on
22            clear and convincing evidence, that the interest
23            paid, accrued, or incurred relates to a contract
24            or agreement entered into at arm's-length rates
25            and terms and the principal purpose for the
26            payment is not federal or Illinois tax avoidance;

 

 

10300HB4951sam002- 94 -LRB103 38094 HLH 74177 a

1            or
2                (iv) an item of interest paid, accrued, or
3            incurred, directly or indirectly, to a person if
4            the taxpayer establishes by clear and convincing
5            evidence that the adjustments are unreasonable; or
6            if the taxpayer and the Director agree in writing
7            to the application or use of an alternative method
8            of apportionment under Section 304(f).
9                Nothing in this subsection shall preclude the
10            Director from making any other adjustment
11            otherwise allowed under Section 404 of this Act
12            for any tax year beginning after the effective
13            date of this amendment provided such adjustment is
14            made pursuant to regulation adopted by the
15            Department and such regulations provide methods
16            and standards by which the Department will utilize
17            its authority under Section 404 of this Act; and
18            (D-8) An amount equal to the amount of intangible
19        expenses and costs otherwise allowed as a deduction in
20        computing base income, and that were paid, accrued, or
21        incurred, directly or indirectly, (i) for taxable
22        years ending on or after December 31, 2004, to a
23        foreign person who would be a member of the same
24        unitary business group but for the fact that the
25        foreign person's business activity outside the United
26        States is 80% or more of that person's total business

 

 

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1        activity and (ii) for taxable years ending on or after
2        December 31, 2008, to a person who would be a member of
3        the same unitary business group but for the fact that
4        the person is prohibited under Section 1501(a)(27)
5        from being included in the unitary business group
6        because he or she is ordinarily required to apportion
7        business income under different subsections of Section
8        304. The addition modification required by this
9        subparagraph shall be reduced to the extent that
10        dividends were included in base income of the unitary
11        group for the same taxable year and received by the
12        taxpayer or by a member of the taxpayer's unitary
13        business group (including amounts included in gross
14        income pursuant to Sections 951 through 964 of the
15        Internal Revenue Code and amounts included in gross
16        income under Section 78 of the Internal Revenue Code)
17        with respect to the stock of the same person to whom
18        the intangible expenses and costs were directly or
19        indirectly paid, incurred or accrued. The preceding
20        sentence shall not apply to the extent that the same
21        dividends caused a reduction to the addition
22        modification required under Section 203(d)(2)(D-7) of
23        this Act. As used in this subparagraph, the term
24        "intangible expenses and costs" includes (1) expenses,
25        losses, and costs for, or related to, the direct or
26        indirect acquisition, use, maintenance or management,

 

 

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1        ownership, sale, exchange, or any other disposition of
2        intangible property; (2) losses incurred, directly or
3        indirectly, from factoring transactions or discounting
4        transactions; (3) royalty, patent, technical, and
5        copyright fees; (4) licensing fees; and (5) other
6        similar expenses and costs. For purposes of this
7        subparagraph, "intangible property" includes patents,
8        patent applications, trade names, trademarks, service
9        marks, copyrights, mask works, trade secrets, and
10        similar types of intangible assets;
11            This paragraph shall not apply to the following:
12                (i) any item of intangible expenses or costs
13            paid, accrued, or incurred, directly or
14            indirectly, from a transaction with a person who
15            is subject in a foreign country or state, other
16            than a state which requires mandatory unitary
17            reporting, to a tax on or measured by net income
18            with respect to such item; or
19                (ii) any item of intangible expense or cost
20            paid, accrued, or incurred, directly or
21            indirectly, if the taxpayer can establish, based
22            on a preponderance of the evidence, both of the
23            following:
24                    (a) the person during the same taxable
25                year paid, accrued, or incurred, the
26                intangible expense or cost to a person that is

 

 

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1                not a related member, and
2                    (b) the transaction giving rise to the
3                intangible expense or cost between the
4                taxpayer and the person did not have as a
5                principal purpose the avoidance of Illinois
6                income tax, and is paid pursuant to a contract
7                or agreement that reflects arm's-length terms;
8                or
9                (iii) any item of intangible expense or cost
10            paid, accrued, or incurred, directly or
11            indirectly, from a transaction with a person if
12            the taxpayer establishes by clear and convincing
13            evidence, that the adjustments are unreasonable;
14            or if the taxpayer and the Director agree in
15            writing to the application or use of an
16            alternative method of apportionment under Section
17            304(f);
18                Nothing in this subsection shall preclude the
19            Director from making any other adjustment
20            otherwise allowed under Section 404 of this Act
21            for any tax year beginning after the effective
22            date of this amendment provided such adjustment is
23            made pursuant to regulation adopted by the
24            Department and such regulations provide methods
25            and standards by which the Department will utilize
26            its authority under Section 404 of this Act;

 

 

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1            (D-9) For taxable years ending on or after
2        December 31, 2008, an amount equal to the amount of
3        insurance premium expenses and costs otherwise allowed
4        as a deduction in computing base income, and that were
5        paid, accrued, or incurred, directly or indirectly, to
6        a person who would be a member of the same unitary
7        business group but for the fact that the person is
8        prohibited under Section 1501(a)(27) from being
9        included in the unitary business group because he or
10        she is ordinarily required to apportion business
11        income under different subsections of Section 304. The
12        addition modification required by this subparagraph
13        shall be reduced to the extent that dividends were
14        included in base income of the unitary group for the
15        same taxable year and received by the taxpayer or by a
16        member of the taxpayer's unitary business group
17        (including amounts included in gross income under
18        Sections 951 through 964 of the Internal Revenue Code
19        and amounts included in gross income under Section 78
20        of the Internal Revenue Code) with respect to the
21        stock of the same person to whom the premiums and costs
22        were directly or indirectly paid, incurred, or
23        accrued. The preceding sentence does not apply to the
24        extent that the same dividends caused a reduction to
25        the addition modification required under Section
26        203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;

 

 

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1            (D-10) An amount equal to the credit allowable to
2        the taxpayer under Section 218(a) of this Act,
3        determined without regard to Section 218(c) of this
4        Act;
5            (D-11) For taxable years ending on or after
6        December 31, 2017, an amount equal to the deduction
7        allowed under Section 199 of the Internal Revenue Code
8        for the taxable year;
9    and by deducting from the total so obtained the following
10    amounts:
11            (E) The valuation limitation amount;
12            (F) An amount equal to the amount of any tax
13        imposed by this Act which was refunded to the taxpayer
14        and included in such total for the taxable year;
15            (G) An amount equal to all amounts included in
16        taxable income as modified by subparagraphs (A), (B),
17        (C) and (D) which are exempt from taxation by this
18        State either by reason of its statutes or Constitution
19        or by reason of the Constitution, treaties or statutes
20        of the United States; provided that, in the case of any
21        statute of this State that exempts income derived from
22        bonds or other obligations from the tax imposed under
23        this Act, the amount exempted shall be the interest
24        net of bond premium amortization;
25            (H) Any income of the partnership which
26        constitutes personal service income as defined in

 

 

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1        Section 1348(b)(1) of the Internal Revenue Code (as in
2        effect December 31, 1981) or a reasonable allowance
3        for compensation paid or accrued for services rendered
4        by partners to the partnership, whichever is greater;
5        this subparagraph (H) is exempt from the provisions of
6        Section 250;
7            (I) An amount equal to all amounts of income
8        distributable to an entity subject to the Personal
9        Property Tax Replacement Income Tax imposed by
10        subsections (c) and (d) of Section 201 of this Act
11        including amounts distributable to organizations
12        exempt from federal income tax by reason of Section
13        501(a) of the Internal Revenue Code; this subparagraph
14        (I) is exempt from the provisions of Section 250;
15            (J) With the exception of any amounts subtracted
16        under subparagraph (G), an amount equal to the sum of
17        all amounts disallowed as deductions by (i) Sections
18        171(a)(2) and 265(a)(2) of the Internal Revenue Code,
19        and all amounts of expenses allocable to interest and
20        disallowed as deductions by Section 265(a)(1) of the
21        Internal Revenue Code; and (ii) for taxable years
22        ending on or after August 13, 1999, Sections
23        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
24        Internal Revenue Code, plus, (iii) for taxable years
25        ending on or after December 31, 2011, Section
26        45G(e)(3) of the Internal Revenue Code and, for

 

 

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1        taxable years ending on or after December 31, 2008,
2        any amount included in gross income under Section 87
3        of the Internal Revenue Code; the provisions of this
4        subparagraph are exempt from the provisions of Section
5        250;
6            (K) An amount equal to those dividends included in
7        such total which were paid by a corporation which
8        conducts business operations in a River Edge
9        Redevelopment Zone or zones created under the River
10        Edge Redevelopment Zone Act and conducts substantially
11        all of its operations from a River Edge Redevelopment
12        Zone or zones. This subparagraph (K) is exempt from
13        the provisions of Section 250;
14            (L) An amount equal to any contribution made to a
15        job training project established pursuant to the Real
16        Property Tax Increment Allocation Redevelopment Act;
17            (M) An amount equal to those dividends included in
18        such total that were paid by a corporation that
19        conducts business operations in a federally designated
20        Foreign Trade Zone or Sub-Zone and that is designated
21        a High Impact Business located in Illinois; provided
22        that dividends eligible for the deduction provided in
23        subparagraph (K) of paragraph (2) of this subsection
24        shall not be eligible for the deduction provided under
25        this subparagraph (M);
26            (N) An amount equal to the amount of the deduction

 

 

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1        used to compute the federal income tax credit for
2        restoration of substantial amounts held under claim of
3        right for the taxable year pursuant to Section 1341 of
4        the Internal Revenue Code;
5            (O) For taxable years 2001 and thereafter, for the
6        taxable year in which the bonus depreciation deduction
7        is taken on the taxpayer's federal income tax return
8        under subsection (k) of Section 168 of the Internal
9        Revenue Code and for each applicable taxable year
10        thereafter, an amount equal to "x", where:
11                (1) "y" equals the amount of the depreciation
12            deduction taken for the taxable year on the
13            taxpayer's federal income tax return on property
14            for which the bonus depreciation deduction was
15            taken in any year under subsection (k) of Section
16            168 of the Internal Revenue Code, but not
17            including the bonus depreciation deduction;
18                (2) for taxable years ending on or before
19            December 31, 2005, "x" equals "y" multiplied by 30
20            and then divided by 70 (or "y" multiplied by
21            0.429); and
22                (3) for taxable years ending after December
23            31, 2005:
24                    (i) for property on which a bonus
25                depreciation deduction of 30% of the adjusted
26                basis was taken, "x" equals "y" multiplied by

 

 

10300HB4951sam002- 103 -LRB103 38094 HLH 74177 a

1                30 and then divided by 70 (or "y" multiplied
2                by 0.429);
3                    (ii) for property on which a bonus
4                depreciation deduction of 50% of the adjusted
5                basis was taken, "x" equals "y" multiplied by
6                1.0;
7                    (iii) for property on which a bonus
8                depreciation deduction of 100% of the adjusted
9                basis was taken in a taxable year ending on or
10                after December 31, 2021, "x" equals the
11                depreciation deduction that would be allowed
12                on that property if the taxpayer had made the
13                election under Section 168(k)(7) of the
14                Internal Revenue Code to not claim bonus
15                depreciation on that property; and
16                    (iv) for property on which a bonus
17                depreciation deduction of a percentage other
18                than 30%, 50% or 100% of the adjusted basis
19                was taken in a taxable year ending on or after
20                December 31, 2021, "x" equals "y" multiplied
21                by 100 times the percentage bonus depreciation
22                on the property (that is, 100(bonus%)) and
23                then divided by 100 times 1 minus the
24                percentage bonus depreciation on the property
25                (that is, 100(1-bonus%)).
26            The aggregate amount deducted under this

 

 

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1        subparagraph in all taxable years for any one piece of
2        property may not exceed the amount of the bonus
3        depreciation deduction taken on that property on the
4        taxpayer's federal income tax return under subsection
5        (k) of Section 168 of the Internal Revenue Code. This
6        subparagraph (O) is exempt from the provisions of
7        Section 250;
8            (P) If the taxpayer sells, transfers, abandons, or
9        otherwise disposes of property for which the taxpayer
10        was required in any taxable year to make an addition
11        modification under subparagraph (D-5), then an amount
12        equal to that addition modification.
13            If the taxpayer continues to own property through
14        the last day of the last tax year for which a
15        subtraction is allowed with respect to that property
16        under subparagraph (O) and for which the taxpayer was
17        required in any taxable year to make an addition
18        modification under subparagraph (D-5), then an amount
19        equal to that addition modification.
20            The taxpayer is allowed to take the deduction
21        under this subparagraph only once with respect to any
22        one piece of property.
23            This subparagraph (P) is exempt from the
24        provisions of Section 250;
25            (Q) The amount of (i) any interest income (net of
26        the deductions allocable thereto) taken into account

 

 

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1        for the taxable year with respect to a transaction
2        with a taxpayer that is required to make an addition
3        modification with respect to such transaction under
4        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
5        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
6        the amount of such addition modification and (ii) any
7        income from intangible property (net of the deductions
8        allocable thereto) taken into account for the taxable
9        year with respect to a transaction with a taxpayer
10        that is required to make an addition modification with
11        respect to such transaction under Section
12        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
13        203(d)(2)(D-8), but not to exceed the amount of such
14        addition modification. This subparagraph (Q) is exempt
15        from Section 250;
16            (R) An amount equal to the interest income taken
17        into account for the taxable year (net of the
18        deductions allocable thereto) with respect to
19        transactions with (i) a foreign person who would be a
20        member of the taxpayer's unitary business group but
21        for the fact that the foreign person's business
22        activity outside the United States is 80% or more of
23        that person's total business activity and (ii) for
24        taxable years ending on or after December 31, 2008, to
25        a person who would be a member of the same unitary
26        business group but for the fact that the person is

 

 

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1        prohibited under Section 1501(a)(27) from being
2        included in the unitary business group because he or
3        she is ordinarily required to apportion business
4        income under different subsections of Section 304, but
5        not to exceed the addition modification required to be
6        made for the same taxable year under Section
7        203(d)(2)(D-7) for interest paid, accrued, or
8        incurred, directly or indirectly, to the same person.
9        This subparagraph (R) is exempt from Section 250;
10            (S) An amount equal to the income from intangible
11        property taken into account for the taxable year (net
12        of the deductions allocable thereto) with respect to
13        transactions with (i) a foreign person who would be a
14        member of the taxpayer's unitary business group but
15        for the fact that the foreign person's business
16        activity outside the United States is 80% or more of
17        that person's total business activity and (ii) for
18        taxable years ending on or after December 31, 2008, to
19        a person who would be a member of the same unitary
20        business group but for the fact that the person is
21        prohibited under Section 1501(a)(27) from being
22        included in the unitary business group because he or
23        she is ordinarily required to apportion business
24        income under different subsections of Section 304, but
25        not to exceed the addition modification required to be
26        made for the same taxable year under Section

 

 

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1        203(d)(2)(D-8) for intangible expenses and costs paid,
2        accrued, or incurred, directly or indirectly, to the
3        same person. This subparagraph (S) is exempt from
4        Section 250;
5            (T) For taxable years ending on or after December
6        31, 2011, in the case of a taxpayer who was required to
7        add back any insurance premiums under Section
8        203(d)(2)(D-9), such taxpayer may elect to subtract
9        that part of a reimbursement received from the
10        insurance company equal to the amount of the expense
11        or loss (including expenses incurred by the insurance
12        company) that would have been taken into account as a
13        deduction for federal income tax purposes if the
14        expense or loss had been uninsured. If a taxpayer
15        makes the election provided for by this subparagraph
16        (T), the insurer to which the premiums were paid must
17        add back to income the amount subtracted by the
18        taxpayer pursuant to this subparagraph (T). This
19        subparagraph (T) is exempt from the provisions of
20        Section 250; and
21            (U) For taxable years beginning on or after
22        January 1, 2023, for any cannabis establishment
23        operating in this State and licensed under the
24        Cannabis Regulation and Tax Act or any cannabis
25        cultivation center or medical cannabis dispensing
26        organization operating in this State and licensed

 

 

10300HB4951sam002- 108 -LRB103 38094 HLH 74177 a

1        under the Compassionate Use of Medical Cannabis
2        Program Act, an amount equal to the deductions that
3        were disallowed under Section 280E of the Internal
4        Revenue Code for the taxable year and that would not be
5        added back under this subsection. The provisions of
6        this subparagraph (U) are exempt from the provisions
7        of Section 250.
 
8    (e) Gross income; adjusted gross income; taxable income.
9        (1) In general. Subject to the provisions of paragraph
10    (2) and subsection (b)(3), for purposes of this Section
11    and Section 803(e), a taxpayer's gross income, adjusted
12    gross income, or taxable income for the taxable year shall
13    mean the amount of gross income, adjusted gross income or
14    taxable income properly reportable for federal income tax
15    purposes for the taxable year under the provisions of the
16    Internal Revenue Code. Taxable income may be less than
17    zero. However, for taxable years ending on or after
18    December 31, 1986, net operating loss carryforwards from
19    taxable years ending prior to December 31, 1986, may not
20    exceed the sum of federal taxable income for the taxable
21    year before net operating loss deduction, plus the excess
22    of addition modifications over subtraction modifications
23    for the taxable year. For taxable years ending prior to
24    December 31, 1986, taxable income may never be an amount
25    in excess of the net operating loss for the taxable year as

 

 

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1    defined in subsections (c) and (d) of Section 172 of the
2    Internal Revenue Code, provided that when taxable income
3    of a corporation (other than a Subchapter S corporation),
4    trust, or estate is less than zero and addition
5    modifications, other than those provided by subparagraph
6    (E) of paragraph (2) of subsection (b) for corporations or
7    subparagraph (E) of paragraph (2) of subsection (c) for
8    trusts and estates, exceed subtraction modifications, an
9    addition modification must be made under those
10    subparagraphs for any other taxable year to which the
11    taxable income less than zero (net operating loss) is
12    applied under Section 172 of the Internal Revenue Code or
13    under subparagraph (E) of paragraph (2) of this subsection
14    (e) applied in conjunction with Section 172 of the
15    Internal Revenue Code.
16        (2) Special rule. For purposes of paragraph (1) of
17    this subsection, the taxable income properly reportable
18    for federal income tax purposes shall mean:
19            (A) Certain life insurance companies. In the case
20        of a life insurance company subject to the tax imposed
21        by Section 801 of the Internal Revenue Code, life
22        insurance company taxable income, plus the amount of
23        distribution from pre-1984 policyholder surplus
24        accounts as calculated under Section 815a of the
25        Internal Revenue Code;
26            (B) Certain other insurance companies. In the case

 

 

10300HB4951sam002- 110 -LRB103 38094 HLH 74177 a

1        of mutual insurance companies subject to the tax
2        imposed by Section 831 of the Internal Revenue Code,
3        insurance company taxable income;
4            (C) Regulated investment companies. In the case of
5        a regulated investment company subject to the tax
6        imposed by Section 852 of the Internal Revenue Code,
7        investment company taxable income;
8            (D) Real estate investment trusts. In the case of
9        a real estate investment trust subject to the tax
10        imposed by Section 857 of the Internal Revenue Code,
11        real estate investment trust taxable income;
12            (E) Consolidated corporations. In the case of a
13        corporation which is a member of an affiliated group
14        of corporations filing a consolidated income tax
15        return for the taxable year for federal income tax
16        purposes, taxable income determined as if such
17        corporation had filed a separate return for federal
18        income tax purposes for the taxable year and each
19        preceding taxable year for which it was a member of an
20        affiliated group. For purposes of this subparagraph,
21        the taxpayer's separate taxable income shall be
22        determined as if the election provided by Section
23        243(b)(2) of the Internal Revenue Code had been in
24        effect for all such years;
25            (F) Cooperatives. In the case of a cooperative
26        corporation or association, the taxable income of such

 

 

10300HB4951sam002- 111 -LRB103 38094 HLH 74177 a

1        organization determined in accordance with the
2        provisions of Section 1381 through 1388 of the
3        Internal Revenue Code, but without regard to the
4        prohibition against offsetting losses from patronage
5        activities against income from nonpatronage
6        activities; except that a cooperative corporation or
7        association may make an election to follow its federal
8        income tax treatment of patronage losses and
9        nonpatronage losses. In the event such election is
10        made, such losses shall be computed and carried over
11        in a manner consistent with subsection (a) of Section
12        207 of this Act and apportioned by the apportionment
13        factor reported by the cooperative on its Illinois
14        income tax return filed for the taxable year in which
15        the losses are incurred. The election shall be
16        effective for all taxable years with original returns
17        due on or after the date of the election. In addition,
18        the cooperative may file an amended return or returns,
19        as allowed under this Act, to provide that the
20        election shall be effective for losses incurred or
21        carried forward for taxable years occurring prior to
22        the date of the election. Once made, the election may
23        only be revoked upon approval of the Director. The
24        Department shall adopt rules setting forth
25        requirements for documenting the elections and any
26        resulting Illinois net loss and the standards to be

 

 

10300HB4951sam002- 112 -LRB103 38094 HLH 74177 a

1        used by the Director in evaluating requests to revoke
2        elections. Public Act 96-932 is declaratory of
3        existing law;
4            (G) Subchapter S corporations. In the case of: (i)
5        a Subchapter S corporation for which there is in
6        effect an election for the taxable year under Section
7        1362 of the Internal Revenue Code, the taxable income
8        of such corporation determined in accordance with
9        Section 1363(b) of the Internal Revenue Code, except
10        that taxable income shall take into account those
11        items which are required by Section 1363(b)(1) of the
12        Internal Revenue Code to be separately stated; and
13        (ii) a Subchapter S corporation for which there is in
14        effect a federal election to opt out of the provisions
15        of the Subchapter S Revision Act of 1982 and have
16        applied instead the prior federal Subchapter S rules
17        as in effect on July 1, 1982, the taxable income of
18        such corporation determined in accordance with the
19        federal Subchapter S rules as in effect on July 1,
20        1982; and
21            (H) Partnerships. In the case of a partnership,
22        taxable income determined in accordance with Section
23        703 of the Internal Revenue Code, except that taxable
24        income shall take into account those items which are
25        required by Section 703(a)(1) to be separately stated
26        but which would be taken into account by an individual

 

 

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1        in calculating his taxable income.
2        (3) Recapture of business expenses on disposition of
3    asset or business. Notwithstanding any other law to the
4    contrary, if in prior years income from an asset or
5    business has been classified as business income and in a
6    later year is demonstrated to be non-business income, then
7    all expenses, without limitation, deducted in such later
8    year and in the 2 immediately preceding taxable years
9    related to that asset or business that generated the
10    non-business income shall be added back and recaptured as
11    business income in the year of the disposition of the
12    asset or business. Such amount shall be apportioned to
13    Illinois using the greater of the apportionment fraction
14    computed for the business under Section 304 of this Act
15    for the taxable year or the average of the apportionment
16    fractions computed for the business under Section 304 of
17    this Act for the taxable year and for the 2 immediately
18    preceding taxable years.
 
19    (f) Valuation limitation amount.
20        (1) In general. The valuation limitation amount
21    referred to in subsections (a)(2)(G), (c)(2)(I) and
22    (d)(2)(E) is an amount equal to:
23            (A) The sum of the pre-August 1, 1969 appreciation
24        amounts (to the extent consisting of gain reportable
25        under the provisions of Section 1245 or 1250 of the

 

 

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1        Internal Revenue Code) for all property in respect of
2        which such gain was reported for the taxable year;
3        plus
4            (B) The lesser of (i) the sum of the pre-August 1,
5        1969 appreciation amounts (to the extent consisting of
6        capital gain) for all property in respect of which
7        such gain was reported for federal income tax purposes
8        for the taxable year, or (ii) the net capital gain for
9        the taxable year, reduced in either case by any amount
10        of such gain included in the amount determined under
11        subsection (a)(2)(F) or (c)(2)(H).
12        (2) Pre-August 1, 1969 appreciation amount.
13            (A) If the fair market value of property referred
14        to in paragraph (1) was readily ascertainable on
15        August 1, 1969, the pre-August 1, 1969 appreciation
16        amount for such property is the lesser of (i) the
17        excess of such fair market value over the taxpayer's
18        basis (for determining gain) for such property on that
19        date (determined under the Internal Revenue Code as in
20        effect on that date), or (ii) the total gain realized
21        and reportable for federal income tax purposes in
22        respect of the sale, exchange or other disposition of
23        such property.
24            (B) If the fair market value of property referred
25        to in paragraph (1) was not readily ascertainable on
26        August 1, 1969, the pre-August 1, 1969 appreciation

 

 

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1        amount for such property is that amount which bears
2        the same ratio to the total gain reported in respect of
3        the property for federal income tax purposes for the
4        taxable year, as the number of full calendar months in
5        that part of the taxpayer's holding period for the
6        property ending July 31, 1969 bears to the number of
7        full calendar months in the taxpayer's entire holding
8        period for the property.
9            (C) The Department shall prescribe such
10        regulations as may be necessary to carry out the
11        purposes of this paragraph.
 
12    (g) Double deductions. Unless specifically provided
13otherwise, nothing in this Section shall permit the same item
14to be deducted more than once.
 
15    (h) Legislative intention. Except as expressly provided by
16this Section there shall be no modifications or limitations on
17the amounts of income, gain, loss or deduction taken into
18account in determining gross income, adjusted gross income or
19taxable income for federal income tax purposes for the taxable
20year, or in the amount of such items entering into the
21computation of base income and net income under this Act for
22such taxable year, whether in respect of property values as of
23August 1, 1969 or otherwise.
24(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;

 

 

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1102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff.
212-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; revised
39-26-23.)
 
4
ARTICLE 15.

 
5    Section 15-5. The Property Tax Code is amended by changing
6Section 18-173 as follows:
 
7    (35 ILCS 200/18-173)
8    Sec. 18-173. Housing opportunity area abatement program.
9    (a) For the purpose of promoting access to housing near
10work and in order to promote economic diversity throughout
11Illinois and to alleviate the concentration of low-income
12households in areas of high poverty, a housing opportunity
13area tax abatement program is created.
14    (b) As used in this Section:
15    "Housing authority" means either a housing authority
16created under the Housing Authorities Act or other government
17agency that is authorized by the United States government
18under the United States Housing Act of 1937 to administer a
19housing choice voucher program, or the authorized agent of
20such a housing authority that is authorized to act upon that
21authority's behalf.
22    "Housing choice voucher" means a tenant voucher issued by
23a housing authority under Section 8 of the United States

 

 

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1Housing Act of 1937 and a tenant voucher converted to a
2project-based voucher by a housing authority.
3    "Housing opportunity area" means a census tract where less
4than 10% of the residents live below the poverty level, as
5defined by the United States government and determined by the
6most recent United States census, that is located within a
7qualified township, except for census tracts located within
8any township that is located wholly within a municipality with
91,000,000 or more inhabitants. A census tract that is located
10within a township that is located wholly within a municipality
11with 1,000,000 or more inhabitants is considered a housing
12opportunity area if less than 12% of the residents of the
13census tract live below the poverty level.
14    "Housing opportunity unit" means a dwelling unit located
15in residential property that is located in a housing
16opportunity area, that is owned by the applicant, and that is
17rented to and occupied by a tenant who is participating in a
18housing choice voucher program administered by a housing
19authority as of January 1st of the tax year for which the
20application is made.
21    "Qualified units" means the number of housing opportunity
22units located in the property with the limitation that no more
23than 2 units or 20% of the total units contained within the
24property, whichever is greater, may be considered qualified
25units. Further, no unit may be considered qualified unless the
26property in which it is contained is in substantial compliance

 

 

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1with local building codes, and, moreover, no unit may be
2considered qualified unless it meets the United States
3Department of Housing and Urban Development's housing quality
4standards as of the most recent housing authority inspection.
5    "Qualified township" means a township located within a
6county with 200,000 or more inhabitants whose tax capacity
7exceeds 80% of the average tax capacity of the county in which
8it is located, except for townships located within a county
9with 3,000,000 or more inhabitants, where a qualified township
10means a township whose tax capacity exceeds 115% of the
11average tax capacity of the county except for townships
12located wholly within a municipality with 1,000,000 or more
13inhabitants. All townships located wholly within a
14municipality with 1,000,000 or more inhabitants are considered
15qualified townships.
16    "Tax capacity" means the equalized assessed value of all
17taxable real estate located within a township or county
18divided by the total population of that township or county.
19    (c) The owner of property located within a housing
20opportunity area who has a housing choice voucher contract
21with a housing authority may apply for a housing opportunity
22area tax abatement by annually submitting an application to
23the housing authority that administers the housing choice
24voucher contract. The application must include the number of
25housing opportunity units as well as the total number of
26dwelling units contained within the property. The owner must,

 

 

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1under oath, self-certify as to the total number of dwelling
2units in the property and must self-certify that the property
3is in substantial compliance with local building codes. The
4housing authority shall annually determine the number of
5qualified units located within each property for which an
6application is made.
7    The housing authority shall establish rules and procedures
8governing the application processes and may charge an
9application fee. The county clerk may audit the applications
10to determine that the properties subject to the tax abatement
11meet the requirements of this Section. The determination of
12eligibility of a property for the housing opportunity area
13abatement shall be made annually; however, no property may
14receive an abatement for more than 10 tax years.
15    (d) The housing authority shall determine housing
16opportunity areas within its service area and annually deliver
17to the county clerk, in a manner determined by the county
18clerk, a list of all properties containing qualified units
19within that service area by December 31st of the tax year for
20which the property is eligible for abatement; the list shall
21include the number of qualified units and the total number of
22dwelling units for each property.
23    The county clerk shall deliver annually to a housing
24authority, upon that housing authority's request, the most
25recent available equalized assessed value for the county as a
26whole and for those taxing districts and townships so

 

 

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1specified by the requesting housing authority.
2    (e) The county clerk shall abate the tax attributed to a
3portion of the property determined to be eligible for a
4housing opportunity area abatement. The portion eligible for
5abatement shall be determined by reducing the equalized
6assessment value by a percentage calculated using the
7following formula: 19% of the equalized assessed value of the
8property multiplied by a fraction where the numerator is the
9number of qualified units and denominator is the total number
10of dwelling units located within the property.
11    (f) Any municipality, except for municipalities with
121,000,000 or more inhabitants, may annually petition the
13county clerk to be excluded from a housing opportunity area if
14it is able to demonstrate that more than 2.5% of the total
15residential units located within that municipality are
16occupied by tenants under the housing choice voucher program.
17Properties located within an excluded municipality shall not
18be eligible for the housing opportunity area abatement for the
19tax year in which the petition is made.
20    (g) Applicability. This Section applies to tax years 2004
21through 2034 2024, unless extended by law.
22(Source: P.A. 98-957, eff. 8-15-14.)
 
23
ARTICLE 20.

 
24    Section 20-5. The Property Tax Code is amended by changing

 

 

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1Section 21-355 as follows:
 
2    (35 ILCS 200/21-355)
3    Sec. 21-355. Amount of redemption. Any person desiring to
4redeem shall deposit an amount specified in this Section with
5the county clerk of the county in which the property is
6situated, in legal money of the United States, or by cashier's
7check, certified check, post office money order or money order
8issued by a financial institution insured by an agency or
9instrumentality of the United States, payable to the county
10clerk of the proper county. The deposit shall be deemed timely
11only if actually received in person at the county clerk's
12office prior to the close of business as defined in Section
133-2007 of the Counties Code on or before the expiration of the
14period of redemption or by United States mail with a post
15office cancellation mark dated not less than one day prior to
16the expiration of the period of redemption. The deposit shall
17be in an amount equal to the total of the following:
18        (a) the certificate amount, which shall include all
19    tax principal, special assessments, interest and penalties
20    paid by the tax purchaser together with costs and fees of
21    sale and fees paid under Sections 21-295 and 21-315
22    through 21-335, except for the nonrefundable $80 fee paid,
23    pursuant to Section 21-295, for each item purchased at the
24    tax sale;
25        (b) the accrued penalty, computed through the date of

 

 

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1    redemption as a percentage of the certificate amount, as
2    follows:
3            (1) if the redemption occurs on or before the
4        expiration of 6 months from the date of sale, the
5        certificate amount times the penalty bid at sale;
6            (2) if the redemption occurs after 6 months from
7        the date of sale, and on or before the expiration of 12
8        months from the date of sale, the certificate amount
9        times 2 times the penalty bid at sale;
10            (3) if the redemption occurs after 12 months from
11        the date of sale and on or before the expiration of 18
12        months from the date of sale, the certificate amount
13        times 3 times the penalty bid at sale;
14            (4) if the redemption occurs after 18 months from
15        the date of sale and on or before the expiration of 24
16        months from the date of sale, the certificate amount
17        times 4 times the penalty bid at sale;
18            (5) if the redemption occurs after 24 months from
19        the date of sale and on or before the expiration of 30
20        months from the date of sale, the certificate amount
21        times 5 times the penalty bid at sale;
22            (6) if the redemption occurs after 30 months from
23        the date of sale and on or before the expiration of 36
24        months from the date of sale, the certificate amount
25        times 6 times the penalty bid at sale.
26        In the event that the property to be redeemed has been

 

 

10300HB4951sam002- 123 -LRB103 38094 HLH 74177 a

1    purchased under Section 21-405 before January 1, 2024, the
2    penalty bid shall be 12% per penalty period as set forth in
3    subparagraphs (1) through (6) of this subsection (b). The
4    changes to this subdivision (b)(6) made by this amendatory
5    Act of the 91st General Assembly are not a new enactment,
6    but declaratory of existing law.
7        For counties with fewer than 3,000,000 inhabitants, if
8    the property to be redeemed is property with respect to
9    which a tax lien or certificate is acquired after January
10    1, 2024 by the county as trustee pursuant to Section
11    21-90, the penalty bid at sale shall accrue according to
12    the penalty periods established in subparagraphs (1)
13    through (6) of this subsection (b).
14        For counties with more than 3,000,000 inhabitants, if
15    If the property to be redeemed is property with respect to
16    which a tax lien or certificate is acquired on or after
17    January 1, 2024 by the county as trustee pursuant to
18    Section 21-90, the penalty bid is 0.75% and shall accrue
19    monthly instead of according to the penalty periods
20    established in subparagraphs (1) through (6) of this
21    subsection (b).
22        (c) The total of all taxes, special assessments,
23    accrued interest on those taxes and special assessments
24    and costs charged in connection with the payment of those
25    taxes or special assessments, except for the nonrefundable
26    $80 fee paid, pursuant to Section 21-295, for each item

 

 

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1    purchased at the tax sale, which have been paid by the tax
2    certificate holder on or after the date those taxes or
3    special assessments became delinquent together with 12%
4    penalty on each amount so paid for each year or portion
5    thereof intervening between the date of that payment and
6    the date of redemption. In counties with less than
7    3,000,000 inhabitants, however, a tax certificate holder
8    may not pay all or part of an installment of a subsequent
9    tax or special assessment for any year, nor shall any
10    tender of such a payment be accepted, until after the
11    second or final installment of the subsequent tax or
12    special assessment has become delinquent or until after
13    the holder of the certificate of purchase has filed a
14    petition for a tax deed under Section 22.30. The person
15    redeeming shall also pay the amount of interest charged on
16    the subsequent tax or special assessment and paid as a
17    penalty by the tax certificate holder. This amendatory Act
18    of 1995 applies to tax years beginning with the 1995
19    taxes, payable in 1996, and thereafter.
20        (d) Any amount paid to redeem a forfeiture occurring
21    before January 1, 2024 but after the tax sale together
22    with 12% penalty thereon for each year or portion thereof
23    intervening between the date of the forfeiture redemption
24    and the date of redemption from the sale.
25        (e) Any amount paid by the certificate holder for
26    redemption of a subsequently occurring tax sale, including

 

 

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1    tax liens or certificates held by the county as trustee,
2    pursuant to Section 21-90.
3        (f) All fees paid to the county clerk under Section
4    22-5.
5        (g) All fees paid to the registrar of titles incident
6    to registering the tax certificate in compliance with the
7    Registered Titles (Torrens) Act.
8        (h) All fees paid to the circuit clerk and the
9    sheriff, a licensed or registered private detective, or
10    the coroner in connection with the filing of the petition
11    for tax deed and service of notices under Sections 22-15
12    through 22-30 and 22-40 in addition to (1) a fee of $35 if
13    a petition for tax deed has been filed, which fee shall be
14    posted to the tax judgement, sale, redemption, and
15    forfeiture record, to be paid to the purchaser or his or
16    her assignee; (2) a fee of $4 if a notice under Section
17    22-5 has been filed, which fee shall be posted to the tax
18    judgment, sale, redemption, and forfeiture record, to be
19    paid to the purchaser or his or her assignee; (3) all costs
20    paid to record a lis pendens notice in connection with
21    filing a petition under this Code; and (4) if a petition
22    for tax deed has been filed, all fees up to $150 per
23    redemption paid to a registered or licensed title
24    insurance company or title insurance agent for a title
25    search to identify all owners, parties interested, and
26    occupants of the property, to be paid to the purchaser or

 

 

10300HB4951sam002- 126 -LRB103 38094 HLH 74177 a

1    his or her assignee. The fees in (1) and (2) of this
2    paragraph (h) shall be exempt from the posting
3    requirements of Section 21-360. The costs incurred in
4    causing notices to be served by a licensed or registered
5    private detective under Section 22-15, may not exceed the
6    amount that the sheriff would be authorized by law to
7    charge if those notices had been served by the sheriff.
8        (i) All fees paid for publication of notice of the tax
9    sale in accordance with Section 22-20.
10        (j) All sums paid to any county, city, village or
11    incorporated town for reimbursement under Section 22-35.
12        (k) All costs and expenses of receivership under
13    Section 21-410, to the extent that these costs and
14    expenses exceed any income from the property in question,
15    if the costs and expenditures have been approved by the
16    court appointing the receiver and a certified copy of the
17    order or approval is filed and posted by the certificate
18    holder with the county clerk. Only actual costs expended
19    may be posted on the tax judgment, sale, redemption and
20    forfeiture record.
21(Source: P.A. 103-555, eff. 1-1-24.)
 
22
ARTICLE 25.

 
23    Section 25-5. The Property Tax Code is amended by changing
24Section 20-15 as follows:
 

 

 

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1    (35 ILCS 200/20-15)
2    Sec. 20-15. Information on bill or separate statement.
3There shall be printed on each bill, or on a separate slip
4which shall be mailed with the bill:
5        (a) a statement itemizing the rate at which taxes have
6    been extended for each of the taxing districts in the
7    county in whose district the property is located, and in
8    those counties utilizing electronic data processing
9    equipment the dollar amount of tax due from the person
10    assessed allocable to each of those taxing districts,
11    including a separate statement of the dollar amount of tax
12    due which is allocable to a tax levied under the Illinois
13    Local Library Act or to any other tax levied by a
14    municipality or township for public library purposes,
15        (b) a separate statement for each of the taxing
16    districts of the dollar amount of tax due which is
17    allocable to a tax levied under the Illinois Pension Code
18    or to any other tax levied by a municipality or township
19    for public pension or retirement purposes,
20        (b-5) a list of each tax increment financing (TIF)
21    district in which the property is located and the dollar
22    amount of tax due that is allocable to the TIF district,
23        (c) the total tax rate,
24        (d) the total amount of tax due, and
25        (e) the amount by which the total tax and the tax

 

 

10300HB4951sam002- 128 -LRB103 38094 HLH 74177 a

1    allocable to each taxing district differs from the
2    taxpayer's last prior tax bill.
3    The county treasurer shall ensure that only those taxing
4districts in which a parcel of property is located shall be
5listed on the bill for that property.
6    In all counties the statement shall also provide:
7        (1) the property index number or other suitable
8    description,
9        (2) the assessment of the property,
10        (3) the statutory amount of each homestead exemption
11    applied to the property,
12        (4) the assessed value of the property after
13    application of all homestead exemptions,
14        (5) the equalization factors imposed by the county and
15    by the Department, and
16        (6) the equalized assessment resulting from the
17    application of the equalization factors to the basic
18    assessment.
19    In all counties which do not classify property for
20purposes of taxation, for property on which a single family
21residence is situated the statement shall also include a
22statement to reflect the fair cash value determined for the
23property. In all counties which classify property for purposes
24of taxation in accordance with Section 4 of Article IX of the
25Illinois Constitution, for parcels of residential property in
26the lowest assessment classification the statement shall also

 

 

10300HB4951sam002- 129 -LRB103 38094 HLH 74177 a

1include a statement to reflect the fair cash value determined
2for the property.
3    In all counties, the statement must include information
4that certain taxpayers may be eligible for tax exemptions,
5abatements, and other assistance programs and that, for more
6information, taxpayers should consult with the office of their
7township or county assessor and with the Illinois Department
8of Revenue. For bills mailed on or after January 1, 2026, the
9statement must include, in bold face type, a list of
10exemptions available to taxpayers and contact information for
11the chief county assessment officer.
12    In counties which use the estimated or accelerated billing
13methods, these statements shall only be provided with the
14final installment of taxes due. The provisions of this Section
15create a mandatory statutory duty. They are not merely
16directory or discretionary. The failure or neglect of the
17collector to mail the bill, or the failure of the taxpayer to
18receive the bill, shall not affect the validity of any tax, or
19the liability for the payment of any tax.
20(Source: P.A. 100-621, eff. 7-20-18; 101-134, eff. 7-26-19.)
 
21
ARTICLE 30.

 
22    Section 30-5. The Property Tax Code is amended by changing
23Section 30-25 as follows:
 

 

 

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1    (35 ILCS 200/30-25)
2    Sec. 30-25. Distributions from account.
3    (a) At the direction of the corporate authorities of a
4taxing district, the treasurer of the taxing district shall
5disburse the amounts held in the tax reimbursement account.
6Unless the taxing district has divided the moneys as provided
7in subsection (b), disbursements shall be made to all of the
8owners of taxable homestead property within the taxing
9district. Each owner of taxable homestead property shall
10receive a proportionate share of the total disbursement based
11on the amount of ad valorem taxes on taxable homestead
12property paid by the owner to the taxing district under the
13most recent tax bill.
14    (b) The corporate authorities of a taxing district may
15direct the treasurer to divide the moneys deposited into the
16account into 2 separate pools to be designated the homestead
17property pool and the commercial or industrial property pool.
18The amount to be deposited into each pool shall be determined
19by the corporate authorities of the taxing district, except
20that at least 50% of the moneys in the account shall be
21deposited into the homestead property pool. The treasurer
22shall disburse the amounts held in each pool in the tax
23reimbursement account at the direction of the corporate
24authorities. Disbursements from the homestead property pool
25shall be made to all of the owners of taxable homestead
26property within the taxing district. Each owner of taxable

 

 

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1homestead property shall receive a proportionate share of the
2total disbursement from the pool based on the amount of ad
3valorem taxes on taxable homestead property paid by the owner
4to the taxing district under the most recent tax bill.
5Disbursements from the commercial or industrial property pool
6shall be made to all of the owners of taxable commercial or
7industrial property, except (i) those owners whose property is
8located within a tax increment financing district, (ii) those
9owners who received a tax incentive as a result of a tax
10incentivized development established by an intergovernmental
11agreement to which the taxing district is a party, or (iii)
12those owners whose property is classified as an apartment
13building. Each eligible owner of taxable commercial or
14industrial property shall receive a proportionate share of the
15total disbursement from the pool based on the amount of ad
16valorem taxes on taxable commercial or industrial property
17paid by the owner to the taxing district under the most recent
18tax bill.
19    (c) In determining the proportionate share of each owner
20of homestead property, the numerator shall be the amount of
21taxes on homestead property paid by that owner to the taxing
22district under the most recent tax bill, and the denominator
23shall be the aggregate total of all taxes on homestead
24property paid by all owners to the taxing district under the
25most recent tax bills.
26    (d) In determining the proportionate share of each owner

 

 

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1of commercial or industrial property, the numerator shall be
2the amount of taxes on commercial or industrial property paid
3by that owner to the taxing district under the most recent tax
4bill, and the denominator shall be the aggregate total of all
5taxes on commercial or industrial property paid by all owners
6to the taxing district under the most recent tax bills less
7taxes paid on commercial or industrial property located in a
8tax increment financing district, taxes paid on commercial or
9industrial property for which the owner received a tax
10incentive as a result of a tax incentivized development
11established by an intergovernmental agreement to which the
12taxing district is a party, and taxes paid on an apartment
13building.
14    (e) As used in this Section:
15    "Qualified redevelopment costs" means costs advanced by a
16taxing district to a commercial or industrial property owner
17to promote economic development when, but for the advancement
18of the funds, the development would not be financially
19feasible.
20    "Tax incentivized development" means an economic
21development project established by intergovernmental agreement
22whereby a taxing district advances qualified redevelopment
23costs to a commercial or industrial property owner.
24(Source: P.A. 90-471, eff. 8-17-97.)
 
25
ARTICLE 35.

 

 

 

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1    Section 35-5. The Property Tax Code is amended by changing
2Sections 18-15 and 18-190 and by adding Section 18-17 as
3follows:
 
4    (35 ILCS 200/18-15)
5    Sec. 18-15. Filing of levies of taxing districts.
6    (a) Notwithstanding any other law to the contrary, all
7taxing districts, other than a school district subject to the
8authority of a Financial Oversight Panel pursuant to Article
91H of the School Code, and except as provided in Section 18-17,
10shall annually certify to the county clerk, on or before the
11last Tuesday in December, the several amounts that they have
12levied.
13    (a-5) Certification to the county clerk under subsection
14(a), including any supplemental or supportive documentation,
15may be submitted electronically.
16    (b) A school district subject to the authority of a
17Financial Oversight Panel pursuant to Article 1H of the School
18Code shall file a certificate of tax levy, necessary to effect
19the implementation of the approved financial plan and the
20approval of the Panel, as otherwise provided by this Section,
21except that the certificate must be certified to the county
22clerk on or before the first Tuesday in November.
23    (c) If a school district as specified in subsection (b) of
24this Section fails to certify and return the certificate of

 

 

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1tax levy, necessary to effect the implementation of the
2approved financial plan and the approval of the Financial
3Oversight Panel, to the county clerk on or before the first
4Tuesday in November, then the Financial Oversight Panel for
5the school district shall proceed to adopt, certify, and
6return a certificate of tax levy for the school district to the
7county clerk on or before the last Tuesday in December.
8(Source: P.A. 102-625, eff. 1-1-22.)
 
9    (35 ILCS 200/18-17 new)
10    Sec. 18-17. Supplemental levy for LaMoille Community Unit
11School District #303. Notwithstanding any other provision of
12law, LaMoille Community Unit School District #303 may, by
13ordinance adopted on or before June 30, 2024, amend or
14supplement its levy for the 2023 tax year for taxes scheduled
15to be collected in calendar year 2024. The District shall
16certify the amount of the amended or supplemental levy to the
17county clerk as soon as possible after the amended or
18supplemental levy is adopted, and the county clerk shall
19include those amounts in the extension of taxes for the 2023
20tax year. In no event shall the amended or supplemental levy
21adopted under this Section cause the District's property tax
22rate for the 2023 tax year to exceed the District's limiting
23rate under the Property Tax Extension Limitation Law or any
24other limitation on the extension of property taxes applicable
25to the District. This Section is repealed on January 1, 2025.
 

 

 

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1    (35 ILCS 200/18-190)
2    Sec. 18-190. Direct referendum; new rate or increased
3limiting rate.
4    (a) If a new rate is authorized by statute to be imposed
5without referendum or is subject to a backdoor referendum, as
6defined in Section 28-2 of the Election Code, the governing
7body of the affected taxing district before levying the new
8rate shall submit the new rate to direct referendum under the
9provisions of this Section and of Article 28 of the Election
10Code. Notwithstanding any other provision of law, the levies
11authorized by Sections 21-110 and 21-110.1 of the Illinois
12Pension Code shall not be considered new rates; however,
13nothing in this amendatory Act of the 98th General Assembly
14authorizes a taxing district to increase its limiting rate or
15its aggregate extension without first obtaining referendum
16approval as provided in this Section. Notwithstanding any
17other provision of law, the levy authorized by Section 18-17
18is considered part of the annual corporate extension for the
19taxing district and is not considered a new rate.
20Notwithstanding the provisions, requirements, or limitations
21of any other law, any tax levied for the 2005 levy year and all
22subsequent levy years by any taxing district subject to this
23Law may be extended at a rate exceeding the rate established
24for that tax by referendum or statute, provided that the rate
25does not exceed the statutory ceiling above which the tax is

 

 

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1not authorized to be further increased either by referendum or
2in any other manner. Notwithstanding the provisions,
3requirements, or limitations of any other law, all taxing
4districts subject to this Law shall follow the provisions of
5this Section whenever seeking referenda approval after March
621, 2006 to (i) levy a new tax rate authorized by statute or
7(ii) increase the limiting rate applicable to the taxing
8district. All taxing districts subject to this Law are
9authorized to seek referendum approval of each proposition
10described and set forth in this Section.
11    The proposition seeking to obtain referendum approval to
12levy a new tax rate as authorized in clause (i) shall be in
13substantially the following form:
14        Shall ... (insert legal name, number, if any, and
15    county or counties of taxing district and geographic or
16    other common name by which a school or community college
17    district is known and referred to), Illinois, be
18    authorized to levy a new tax for ... purposes and have an
19    additional tax of ...% of the equalized assessed value of
20    the taxable property therein extended for such purposes?
21The votes must be recorded as "Yes" or "No".
22    The proposition seeking to obtain referendum approval to
23increase the limiting rate as authorized in clause (ii) shall
24be in substantially the following form:
25        Shall the limiting rate under the Property Tax
26    Extension Limitation Law for ... (insert legal name,

 

 

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1    number, if any, and county or counties of taxing district
2    and geographic or other common name by which a school or
3    community college district is known and referred to),
4    Illinois, be increased by an additional amount equal to
5    ...% above the limiting rate for the purpose of...(insert
6    purpose) for levy year ... (insert the most recent levy
7    year for which the limiting rate of the taxing district is
8    known at the time the submission of the proposition is
9    initiated by the taxing district) and be equal to ...% of
10    the equalized assessed value of the taxable property
11    therein for levy year(s) (insert each levy year for which
12    the increase will be applicable, which years must be
13    consecutive and may not exceed 4)?
14    The votes must be recorded as "Yes" or "No".
15    The ballot for any proposition submitted pursuant to this
16Section shall have printed thereon, but not as a part of the
17proposition submitted, only the following supplemental
18information (which shall be supplied to the election authority
19by the taxing district) in substantially the following form:
20        (1) The approximate amount of taxes extendable at the
21    most recently extended limiting rate is $..., and the
22    approximate amount of taxes extendable if the proposition
23    is approved is $....
24        (2) For the ... (insert the first levy year for which
25    the new rate or increased limiting rate will be
26    applicable) levy year the approximate amount of the

 

 

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1    additional tax extendable against property containing a
2    single family residence and having a fair market value at
3    the time of the referendum of $100,000 is estimated to be
4    $....
5        (3) Based upon an average annual percentage increase
6    (or decrease) in the market value of such property of %...
7    (insert percentage equal to the average annual percentage
8    increase or decrease for the prior 3 levy years, at the
9    time the submission of the proposition is initiated by the
10    taxing district, in the amount of (A) the equalized
11    assessed value of the taxable property in the taxing
12    district less (B) the new property included in the
13    equalized assessed value), the approximate amount of the
14    additional tax extendable against such property for the
15    ... levy year is estimated to be $... and for the ... levy
16    year is estimated to be $ ....
17        (4) If the proposition is approved, the aggregate
18    extension for ... (insert each levy year for which the
19    increase will apply) will be determined by the limiting
20    rate set forth in the proposition, rather than the
21    otherwise applicable limiting rate calculated under the
22    provisions of the Property Tax Extension Limitation Law
23    (commonly known as the Property Tax Cap Law).
24The approximate amount of taxes extendable shown in paragraph
25(1) shall be computed upon the last known equalized assessed
26value of taxable property in the taxing district (at the time

 

 

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1the submission of the proposition is initiated by the taxing
2district). Paragraph (3) shall be included only if the
3increased limiting rate will be applicable for more than one
4levy year and shall list each levy year for which the increased
5limiting rate will be applicable. The additional tax shown for
6each levy year shall be the approximate dollar amount of the
7increase over the amount of the most recently completed
8extension at the time the submission of the proposition is
9initiated by the taxing district. The approximate amount of
10the additional taxes extendable shown in paragraphs (2) and
11(3) shall be calculated by multiplying $100,000 (the fair
12market value of the property without regard to any property
13tax exemptions) by (i) the percentage level of assessment
14prescribed for that property by statute, or by ordinance of
15the county board in counties that classify property for
16purposes of taxation in accordance with Section 4 of Article
17IX of the Illinois Constitution; (ii) the most recent final
18equalization factor certified to the county clerk by the
19Department of Revenue at the time the taxing district
20initiates the submission of the proposition to the electors;
21and (iii) either the new rate or the amount by which the
22limiting rate is to be increased. This amendatory Act of the
2397th General Assembly is intended to clarify the existing
24requirements of this Section, and shall not be construed to
25validate any prior non-compliant referendum language.
26Paragraph (4) shall be included if the proposition concerns a

 

 

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1limiting rate increase but shall not be included if the
2proposition concerns a new rate. Any notice required to be
3published in connection with the submission of the proposition
4shall also contain this supplemental information and shall not
5contain any other supplemental information regarding the
6proposition. Any error, miscalculation, or inaccuracy in
7computing any amount set forth on the ballot and in the notice
8that is not deliberate shall not invalidate or affect the
9validity of any proposition approved. Notice of the referendum
10shall be published and posted as otherwise required by law,
11and the submission of the proposition shall be initiated as
12provided by law.
13    If a majority of all ballots cast on the proposition are in
14favor of the proposition, the following provisions shall be
15applicable to the extension of taxes for the taxing district:
16        (A) a new tax rate shall be first effective for the
17    levy year in which the new rate is approved;
18        (B) if the proposition provides for a new tax rate,
19    the taxing district is authorized to levy a tax after the
20    canvass of the results of the referendum by the election
21    authority for the purposes for which the tax is
22    authorized;
23        (C) a limiting rate increase shall be first effective
24    for the levy year in which the limiting rate increase is
25    approved, provided that the taxing district may elect to
26    have a limiting rate increase be effective for the levy

 

 

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1    year prior to the levy year in which the limiting rate
2    increase is approved unless the extension of taxes for the
3    prior levy year occurs 30 days or less after the canvass of
4    the results of the referendum by the election authority in
5    any county in which the taxing district is located;
6        (D) in order for the limiting rate increase to be
7    first effective for the levy year prior to the levy year of
8    the referendum, the taxing district must certify its
9    election to have the limiting rate increase be effective
10    for the prior levy year to the clerk of each county in
11    which the taxing district is located not more than 2 days
12    after the date the results of the referendum are canvassed
13    by the election authority; and
14        (E) if the proposition provides for a limiting rate
15    increase, the increase may be effective regardless of
16    whether the proposition is approved before or after the
17    taxing district adopts or files its levy for any levy
18    year.
19    Rates required to extend taxes on levies subject to a
20backdoor referendum in each year there is a levy are not new
21rates or rate increases under this Section if a levy has been
22made for the fund in one or more of the preceding 3 levy years.
23Changes made by this amendatory Act of 1997 to this Section in
24reference to rates required to extend taxes on levies subject
25to a backdoor referendum in each year there is a levy are
26declarative of existing law and not a new enactment.

 

 

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1    (b) Whenever other applicable law authorizes a taxing
2district subject to the limitation with respect to its
3aggregate extension provided for in this Law to issue bonds or
4other obligations either without referendum or subject to
5backdoor referendum, the taxing district may elect for each
6separate bond issuance to submit the question of the issuance
7of the bonds or obligations directly to the voters of the
8taxing district, and if the referendum passes the taxing
9district is not required to comply with any backdoor
10referendum procedures or requirements set forth in the other
11applicable law. The direct referendum shall be initiated by
12ordinance or resolution of the governing body of the taxing
13district, and the question shall be certified to the proper
14election authorities in accordance with the provisions of the
15Election Code.
16(Source: P.A. 97-1087, eff. 8-24-12; 98-1088, eff. 8-26-14.)
 
17    Section 35-10. The School Code is amended by changing
18Section 17-3.2 as follows:
 
19    (105 ILCS 5/17-3.2)  (from Ch. 122, par. 17-3.2)
20    Sec. 17-3.2. Additional or supplemental budget.
21    (a) Whenever the voters of a school district have voted in
22favor of an increase in the annual tax rate for educational or
23operations and maintenance purposes or both at an election
24held after the adoption of the annual school budget for any

 

 

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1fiscal year, the board may adopt or pass during that fiscal
2year an additional or supplemental budget under the sole
3authority of this Section by a vote of a majority of the full
4membership of the board, any other provision of this Article
5to the contrary notwithstanding, in and by which such
6additional or supplemental budget the board shall appropriate
7such additional sums of money as it may find necessary to
8defray expenses and liabilities of that district to be
9incurred for educational or operations and maintenance
10purposes or both of the district during that fiscal year, but
11not in excess of the additional funds estimated to be
12available by virtue of such voted increase in the annual tax
13rate for educational or operations and maintenance purposes or
14both. Such additional or supplemental budget shall be regarded
15as an amendment of the annual school budget for the fiscal year
16in which it is adopted, and the board may levy the additional
17tax for educational or operations and maintenance purposes or
18both to equal the amount of the additional sums of money
19appropriated in that additional or supplemental budget,
20immediately.
21    (b) Notwithstanding any other provision of law, LaMoille
22Community Unit School District #303 may adopt an additional or
23supplemental budget in connection with an amended or
24supplemental levy adopted under Section 18-17 of the Property
25Tax Code without receiving the approval of the voters as
26provided in subsection (a). This subsection (b) is inoperative

 

 

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1on and after January 1, 2025.
2(Source: P.A. 86-1334.)
 
3
ARTICLE 40.

 
4    Section 40-1. Short title. This Act may be cited as the
5Local Journalism Sustainability Act. References in this
6Article to "this Act" mean this Article.
 
7    Section 40-5. Definitions.
8    "Award cycle" means the 4 reporting periods for which the
9employer is awarded a credit under Section 40-10.
10    "Comparable rate" has the meaning given to that term by
11the Federal Communications Commission in its campaign
12advertising rate rules.
13    "Department" means the Department of Commerce and Economic
14Opportunity.
15    "Independently owned" means, as applied to a local news
16organization, that:
17        (1) the local news organization is not a publicly
18    traded entity and no more than 5% of the beneficial
19    ownership of the local news organization is owned,
20    directly or indirectly, by a publicly traded entity; and
21        (2) the local news organization is not a subsidiary.
22    "Local news organization" means an entity that:
23        (1) engages professionals to create, edit, produce,

 

 

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1    and distribute original content concerning matters of
2    public interest through reporting activities, including
3    conducting interviews, observing current events, or
4    analyzing documents or other information;
5        (2) has at least one employee who meets all of the
6    following criteria:
7            (A) the employee is employed by the entity on a
8        full-time basis for at least 30 hours a week;
9            (B) the employee's job duties for the entity
10        consist primarily of providing coverage of Illinois or
11        local Illinois community news as described in
12        paragraph (C);
13            (C) the employee gathers, prepares, collects,
14        photographs, writes, edits, reports, or publishes
15        original local or State community news for
16        dissemination to the local or State community; and
17            (D) the employee lives within 50 miles of the
18        coverage area;
19        (3) in the case of a print publication, has published
20    at least one print publication per month over the previous
21    12 months and either (i) holds a valid United States
22    Postal Service periodical permit or (ii) has at least 25%
23    of its content dedicated to local news;
24        (4) in the case of a digital-only entity, has
25    published one piece about the community per week over the
26    previous 12 months and has at least 33% of its digital

 

 

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1    audience in Illinois, averaged over a 12-month period;
2        (5) in the case of a hybrid entity that has both print
3    and digital outlets, meets the requirements in either
4    paragraph (3) or (4) of this definition;
5        (6) has disclosed in its print publication or on its
6    website its beneficial ownership or, in the case of a
7    not-for-profit entity, its board of directors;
8        (7) in the case of an entity that maintains tax status
9    under Section 501(c)(3) of the federal Internal Revenue
10    Code, has declared the coverage of local or State news as
11    the stated mission in its filings with the Internal
12    Revenue Service;
13        (8) has not received any payments of more than 50% of
14    its gross receipts for the previous year from political
15    action committees or other entities described in Section
16    527 of the federal Internal Revenue Code or from an
17    organization that maintains Section 501(c)(4) or 501(c)(6)
18    status under the federal Internal Revenue Code, unless
19    those payments are for political advertising during the
20    lowest unit windows and using comparable rates; and
21        (9) has not received more than 30% of its revenue from
22    the previous taxable year from political advertisements
23    during lowest unit windows.
24    "Local news organization" does not include an organization
25that received more than $100,000 from organizations described
26in paragraph (8) during the taxable year or any preceding

 

 

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1taxable year.
2    "Lowest unit window" has the meaning given to that term by
3the Federal Communications Commission in its campaign
4advertising rate rules.
5    "New journalism position" means an employment position
6that results in a net increase in qualified journalists
7employed by the local news organization from January 1 of the
8preceding calendar year compared to January 1 of the calendar
9year in which a credit under this Act is sought.
10    "Private fund" means a corporation that:
11        (1) would be considered an investment company under
12    Section 3 of the Investment Company Act of 1940, 15 U.S.C.
13    80a-3, but for the application of paragraph (1) or (7) of
14    subsection (c) of that Section;
15        (2) is not a venture capital fund, as defined in
16    Section 275.203(l)-1 of Title 17 of the Code of Federal
17    Regulations, as in effect on the effective date of this
18    Act; and
19        (3) is not an institution selected under Section 107
20    of the federal Community Development Banking and Financial
21    Institutions Act of 1994.
22    "Qualified journalist" means a person who:
23        (1) is employed for an average of at least 30 hours per
24    week; and
25        (2) is responsible for gathering, developing,
26    preparing, directing the recording of, producing,

 

 

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1    collecting, photographing, recording, writing, editing,
2    reporting, designing, presenting, distributing, or
3    publishing original news or information that concerns
4    local matters of public interest.
5    "Reporting period" means the quarter for which a return is
6required to be filed under Article 7 of the Illinois Income Tax
7Act.
 
8    Section 40-10. Credit award. For reporting periods that
9begin on or after January 1, 2025 and before January 1, 2030,
10employers, including employers that maintain tax status under
11Section 501(c)(3) of the federal Internal Revenue Code, that
12are local news organizations and that are required to deduct
13and withhold taxes as provided in Article 7 of the Illinois
14Income Tax Act are eligible to receive a credit against
15payments due under Section 704A of the Illinois Income Tax
16Act. The credit shall be $15,000 per qualified journalist
17employed and paid by the employer during the 12-month period
18immediately preceding the date on which the employer applies
19for a credit under this Section. An additional credit of
20$10,000 shall be awarded against payments due under Section
21704A of the Illinois Income Tax Act for each qualified
22journalist who fills a new journalism position for the
23employer during the 12-month period immediately preceding the
24date on which the employer applies for a credit under this
25Section. No more than $150,000 in credits under this Act may be

 

 

10300HB4951sam002- 149 -LRB103 38094 HLH 74177 a

1awarded to any one local news organization in a single
2calendar year. If the local news organization is not
3independently owned or lists a private fund among its
4beneficial ownership, no more than $250,000 in credits may be
5awarded in a single calendar year to all local news
6organizations that share the same ownership interest. The
7total amount of credits that may be awarded under this Act in
8any given calendar year may not exceed $5,000,000, of which no
9more than $4,000,000 may be awarded for the $15,000 credit
10that applies to qualified journalists, and no more than
11$1,000,000 may be awarded for the additional $10,000 credit
12that is awarded for new journalism positions. Credits under
13this Section shall be awarded by the Department on a
14first-come, first-served basis.
15    The Department shall issue a credit certificate to each
16eligible local news organization. Upon issuance of the credit
17certificate, the Department shall inform the Department of
18Revenue, in the form and manner as agreed between the
19agencies, of the date the credit certificate was issued, the
20name and tax identification number of the recipient, the
21amount of the credit, and such other information as the
22Department of Revenue may require. The credit certificate
23shall be attached to the taxpayer's return.
24    The credit shall be applied to the first reporting period
25after the credit certificate is issued and that begins on or
26after January 1, 2025. If the amount of credit exceeds the

 

 

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1liability for the reporting period, the excess credit shall be
2refunded to the taxpayer.
 
3    Section 40-15. Application for local journalism
4certificate.
5    (a) In order to qualify for a tax credit award under this
6Act, an applicant must apply with the Department, in the form
7and manner required by the Department, for each award cycle
8for which a credit under this Act is sought, providing
9information necessary to calculate the tax credit award and
10any additional information as reasonably required by the
11Department. A separate application shall be filed for each
12local news organization. The tax credit award shall be
13calculated based upon the filing by the applicant on forms
14prescribed by the Department. The Department shall cooperate
15with the Department of Revenue as needed in order to determine
16credit amount and eligibility.
17     (b) Upon satisfactory review of the application, the
18Department shall issue a local journalism certificate stating
19the amount of the tax credit award to which the applicant is
20entitled for the credit period and shall contemporaneously
21notify the applicant and Department of Revenue upon issuance
22of the certificate.
 
23    Section 40-20. Powers of the Department. The Department
24and the Department of Revenue may, in consultation, adopt any

 

 

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1rules necessary to administer the provisions of this Act.
 
2    Section 40-25. Program terms and conditions. Any
3documentary materials or data made available or received from
4an applicant by any agent or employee of the Department are
5confidential and are not public records to the extent that the
6materials or data consist of commercial or financial
7information regarding the operation of, or the production of,
8the applicant or recipient of any tax credit award under this
9Act.
 
10    Section 40-900. The Illinois Income Tax Act is amended by
11changing Section 704A as follows:
 
12    (35 ILCS 5/704A)
13    Sec. 704A. Employer's return and payment of tax withheld.
14    (a) In general, every employer who deducts and withholds
15or is required to deduct and withhold tax under this Act on or
16after January 1, 2008 shall make those payments and returns as
17provided in this Section.
18    (b) Returns. Every employer shall, in the form and manner
19required by the Department, make returns with respect to taxes
20withheld or required to be withheld under this Article 7 for
21each quarter beginning on or after January 1, 2008, on or
22before the last day of the first month following the close of
23that quarter.

 

 

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

 

 

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

 

 

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

 

 

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1calendar years, the Department may, by rule, require that any
2return (including any amended return) under this Section and
3any W-2 Form that is required to be submitted to the Department
4must be submitted on magnetic media or electronically.
5    The due date for submitting W-2 Forms shall be as
6prescribed by the Department by rule.
7    (g) For amounts deducted or withheld after December 31,
82009, a taxpayer who makes an election under subsection (f) of
9Section 5-15 of the Economic Development for a Growing Economy
10Tax Credit Act for a taxable year shall be allowed a credit
11against payments due under this Section for amounts withheld
12during the first calendar year beginning after the end of that
13taxable year equal to the amount of the credit for the
14incremental income tax attributable to full-time employees of
15the taxpayer awarded to the taxpayer by the Department of
16Commerce and Economic Opportunity under the Economic
17Development for a Growing Economy Tax Credit Act for the
18taxable year and credits not previously claimed and allowed to
19be carried forward under Section 211(4) of this Act as
20provided in subsection (f) of Section 5-15 of the Economic
21Development for a Growing Economy Tax Credit Act. The credit
22or credits may not reduce the taxpayer's obligation for any
23payment due under this Section to less than zero. If the amount
24of the credit or credits exceeds the total payments due under
25this Section with respect to amounts withheld during the
26calendar year, the excess may be carried forward and applied

 

 

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1against the taxpayer's liability under this Section in the
2succeeding calendar years as allowed to be carried forward
3under paragraph (4) of Section 211 of this Act. The credit or
4credits shall be applied to the earliest year for which there
5is a tax liability. If there are credits from more than one
6taxable year that are available to offset a liability, the
7earlier credit shall be applied first. Each employer who
8deducts and withholds or is required to deduct and withhold
9tax under this Act and who retains income tax withholdings
10under subsection (f) of Section 5-15 of the Economic
11Development for a Growing Economy Tax Credit Act must make a
12return with respect to such taxes and retained amounts in the
13form and manner that the Department, by rule, requires and pay
14to the Department or to a depositary designated by the
15Department those withheld taxes not retained by the taxpayer.
16For purposes of this subsection (g), the term taxpayer shall
17include taxpayer and members of the taxpayer's unitary
18business group as defined under paragraph (27) of subsection
19(a) of Section 1501 of this Act. This Section is exempt from
20the provisions of Section 250 of this Act. No credit awarded
21under the Economic Development for a Growing Economy Tax
22Credit Act for agreements entered into on or after January 1,
232015 may be credited against payments due under this Section.
24    (g-1) For amounts deducted or withheld after December 31,
252024, a taxpayer who makes an election under the Reimagining
26Energy and Vehicles in Illinois Act shall be allowed a credit

 

 

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1against payments due under this Section for amounts withheld
2during the first quarterly reporting period beginning after
3the certificate is issued equal to the portion of the REV
4Illinois Credit attributable to the incremental income tax
5attributable to new employees and retained employees as
6certified by the Department of Commerce and Economic
7Opportunity pursuant to an agreement with the taxpayer under
8the Reimagining Energy and Vehicles in Illinois Act for the
9taxable year. The credit or credits may not reduce the
10taxpayer's obligation for any payment due under this Section
11to less than zero. If the amount of the credit or credits
12exceeds the total payments due under this Section with respect
13to amounts withheld during the quarterly reporting period, the
14excess may be carried forward and applied against the
15taxpayer's liability under this Section in the succeeding
16quarterly reporting period as allowed to be carried forward
17under paragraph (4) of Section 211 of this Act. The credit or
18credits shall be applied to the earliest quarterly reporting
19period for which there is a tax liability. If there are credits
20from more than one quarterly reporting period that are
21available to offset a liability, the earlier credit shall be
22applied first. Each employer who deducts and withholds or is
23required to deduct and withhold tax under this Act and who
24retains income tax withholdings this subsection must make a
25return with respect to such taxes and retained amounts in the
26form and manner that the Department, by rule, requires and pay

 

 

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1to the Department or to a depositary designated by the
2Department those withheld taxes not retained by the taxpayer.
3For purposes of this subsection (g-1), the term taxpayer shall
4include taxpayer and members of the taxpayer's unitary
5business group as defined under paragraph (27) of subsection
6(a) of Section 1501 of this Act. This Section is exempt from
7the provisions of Section 250 of this Act.
8    (g-2) For amounts deducted or withheld after December 31,
92024, a taxpayer who makes an election under the Manufacturing
10Illinois Chips for Real Opportunity (MICRO) Act shall be
11allowed a credit against payments due under this Section for
12amounts withheld during the first quarterly reporting period
13beginning after the certificate is issued equal to the portion
14of the MICRO Illinois Credit attributable to the incremental
15income tax attributable to new employees and retained
16employees as certified by the Department of Commerce and
17Economic Opportunity pursuant to an agreement with the
18taxpayer under the Manufacturing Illinois Chips for Real
19Opportunity (MICRO) Act for the taxable year. The credit or
20credits may not reduce the taxpayer's obligation for any
21payment due under this Section to less than zero. If the amount
22of the credit or credits exceeds the total payments due under
23this Section with respect to amounts withheld during the
24quarterly reporting period, the excess may be carried forward
25and applied against the taxpayer's liability under this
26Section in the succeeding quarterly reporting period as

 

 

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1allowed to be carried forward under paragraph (4) of Section
2211 of this Act. The credit or credits shall be applied to the
3earliest quarterly reporting period for which there is a tax
4liability. If there are credits from more than one quarterly
5reporting period that are available to offset a liability, the
6earlier credit shall be applied first. Each employer who
7deducts and withholds or is required to deduct and withhold
8tax under this Act and who retains income tax withholdings
9this subsection must make a return with respect to such taxes
10and retained amounts in the form and manner that the
11Department, by rule, requires and pay to the Department or to a
12depositary designated by the Department those withheld taxes
13not retained by the taxpayer. For purposes of this subsection,
14the term taxpayer shall include taxpayer and members of the
15taxpayer's unitary business group as defined under paragraph
16(27) of subsection (a) of Section 1501 of this Act. This
17Section is exempt from the provisions of Section 250 of this
18Act.
19    (h) An employer may claim a credit against payments due
20under this Section for amounts withheld during the first
21calendar year ending after the date on which a tax credit
22certificate was issued under Section 35 of the Small Business
23Job Creation Tax Credit Act. The credit shall be equal to the
24amount shown on the certificate, but may not reduce the
25taxpayer's obligation for any payment due under this Section
26to less than zero. If the amount of the credit exceeds the

 

 

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1total payments due under this Section with respect to amounts
2withheld during the calendar year, the excess may be carried
3forward and applied against the taxpayer's liability under
4this Section in the 5 succeeding calendar years. The credit
5shall be applied to the earliest year for which there is a tax
6liability. If there are credits from more than one calendar
7year that are available to offset a liability, the earlier
8credit shall be applied first. This Section is exempt from the
9provisions of Section 250 of this Act.
10    (i) Each employer with 50 or fewer full-time equivalent
11employees during the reporting period may claim a credit
12against the payments due under this Section for each qualified
13employee in an amount equal to the maximum credit allowable.
14The credit may be taken against payments due for reporting
15periods that begin on or after January 1, 2020, and end on or
16before December 31, 2027. An employer may not claim a credit
17for an employee who has worked fewer than 90 consecutive days
18immediately preceding the reporting period; however, such
19credits may accrue during that 90-day period and be claimed
20against payments under this Section for future reporting
21periods after the employee has worked for the employer at
22least 90 consecutive days. In no event may the credit exceed
23the employer's liability for the reporting period. Each
24employer who deducts and withholds or is required to deduct
25and withhold tax under this Act and who retains income tax
26withholdings under this subsection must make a return with

 

 

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1respect to such taxes and retained amounts in the form and
2manner that the Department, by rule, requires and pay to the
3Department or to a depositary designated by the Department
4those withheld taxes not retained by the employer.
5    For each reporting period, the employer may not claim a
6credit or credits for more employees than the number of
7employees making less than the minimum or reduced wage for the
8current calendar year during the last reporting period of the
9preceding calendar year. Notwithstanding any other provision
10of this subsection, an employer shall not be eligible for
11credits for a reporting period unless the average wage paid by
12the employer per employee for all employees making less than
13$55,000 during the reporting period is greater than the
14average wage paid by the employer per employee for all
15employees making less than $55,000 during the same reporting
16period of the prior calendar year.
17    For purposes of this subsection (i):
18    "Compensation paid in Illinois" has the meaning ascribed
19to that term under Section 304(a)(2)(B) of this Act.
20    "Employer" and "employee" have the meaning ascribed to
21those terms in the Minimum Wage Law, except that "employee"
22also includes employees who work for an employer with fewer
23than 4 employees. Employers that operate more than one
24establishment pursuant to a franchise agreement or that
25constitute members of a unitary business group shall aggregate
26their employees for purposes of determining eligibility for

 

 

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1the credit.
2    "Full-time equivalent employees" means the ratio of the
3number of paid hours during the reporting period and the
4number of working hours in that period.
5    "Maximum credit" means the percentage listed below of the
6difference between the amount of compensation paid in Illinois
7to employees who are paid not more than the required minimum
8wage reduced by the amount of compensation paid in Illinois to
9employees who were paid less than the current required minimum
10wage during the reporting period prior to each increase in the
11required minimum wage on January 1. If an employer pays an
12employee more than the required minimum wage and that employee
13previously earned less than the required minimum wage, the
14employer may include the portion that does not exceed the
15required minimum wage as compensation paid in Illinois to
16employees who are paid not more than the required minimum
17wage.
18        (1) 25% for reporting periods beginning on or after
19    January 1, 2020 and ending on or before December 31, 2020;
20        (2) 21% for reporting periods beginning on or after
21    January 1, 2021 and ending on or before December 31, 2021;
22        (3) 17% for reporting periods beginning on or after
23    January 1, 2022 and ending on or before December 31, 2022;
24        (4) 13% for reporting periods beginning on or after
25    January 1, 2023 and ending on or before December 31, 2023;
26        (5) 9% for reporting periods beginning on or after

 

 

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1    January 1, 2024 and ending on or before December 31, 2024;
2        (6) 5% for reporting periods beginning on or after
3    January 1, 2025 and ending on or before December 31, 2025.
4    The amount computed under this subsection may continue to
5be claimed for reporting periods beginning on or after January
61, 2026 and:
7        (A) ending on or before December 31, 2026 for
8    employers with more than 5 employees; or
9        (B) ending on or before December 31, 2027 for
10    employers with no more than 5 employees.
11    "Qualified employee" means an employee who is paid not
12more than the required minimum wage and has an average wage
13paid per hour by the employer during the reporting period
14equal to or greater than his or her average wage paid per hour
15by the employer during each reporting period for the
16immediately preceding 12 months. A new qualified employee is
17deemed to have earned the required minimum wage in the
18preceding reporting period.
19    "Reporting period" means the quarter for which a return is
20required to be filed under subsection (b) of this Section.
21    (j) For reporting periods beginning on or after January 1,
222023, if a private employer grants all of its employees the
23option of taking a paid leave of absence of at least 30 days
24for the purpose of serving as an organ donor or bone marrow
25donor, then the private employer may take a credit against the
26payments due under this Section in an amount equal to the

 

 

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1amount withheld under this Section with respect to wages paid
2while the employee is on organ donation leave, not to exceed
3$1,000 in withholdings for each employee who takes organ
4donation leave. To be eligible for the credit, such a leave of
5absence must be taken without loss of pay, vacation time,
6compensatory time, personal days, or sick time for at least
7the first 30 days of the leave of absence. The private employer
8shall adopt rules governing organ donation leave, including
9rules that (i) establish conditions and procedures for
10requesting and approving leave and (ii) require medical
11documentation of the proposed organ or bone marrow donation
12before leave is approved by the private employer. A private
13employer must provide, in the manner required by the
14Department, documentation from the employee's medical
15provider, which the private employer receives from the
16employee, that verifies the employee's organ donation. The
17private employer must also provide, in the manner required by
18the Department, documentation that shows that a qualifying
19organ donor leave policy was in place and offered to all
20qualifying employees at the time the leave was taken. For the
21private employer to receive the tax credit, the employee
22taking organ donor leave must allow for the applicable medical
23records to be disclosed to the Department. If the private
24employer cannot provide the required documentation to the
25Department, then the private employer is ineligible for the
26credit under this Section. A private employer must also

 

 

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1provide, in the form required by the Department, any
2additional documentation or information required by the
3Department to administer the credit under this Section. The
4credit under this subsection (j) shall be taken within one
5year after the date upon which the organ donation leave
6begins. If the leave taken spans into a second tax year, the
7employer qualifies for the allowable credit in the later of
8the 2 years. If the amount of credit exceeds the tax liability
9for the year, the excess may be carried and applied to the tax
10liability for the 3 taxable years following the excess credit
11year. The tax credit shall be applied to the earliest year for
12which there is a tax liability. If there are credits for more
13than one year that are available to offset liability, the
14earlier credit shall be applied first.
15    Nothing in this subsection (j) prohibits a private
16employer from providing an unpaid leave of absence to its
17employees for the purpose of serving as an organ donor or bone
18marrow donor; however, if the employer's policy provides for
19fewer than 30 days of paid leave for organ or bone marrow
20donation, then the employer shall not be eligible for the
21credit under this Section.
22    As used in this subsection (j):
23    "Organ" means any biological tissue of the human body that
24may be donated by a living donor, including, but not limited
25to, the kidney, liver, lung, pancreas, intestine, bone, skin,
26or any subpart of those organs.

 

 

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1    "Organ donor" means a person from whose body an organ is
2taken to be transferred to the body of another person.
3    "Private employer" means a sole proprietorship,
4corporation, partnership, limited liability company, or other
5entity with one or more employees. "Private employer" does not
6include a municipality, county, State agency, or other public
7employer.
8    This subsection (j) is exempt from the provisions of
9Section 250 of this Act.
10    (k) A taxpayer who is issued a certificate under the Local
11Journalism Sustainability Act for a taxable year shall be
12allowed a credit against payments due under this Section as
13provided in that Act.
14(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21;
15102-700, Article 30, Section 30-5, eff. 4-19-22; 102-700,
16Article 110, Section 110-905, eff. 4-19-22; 102-1125, eff.
172-3-23.)
 
18
ARTICLE 45.

 
19    Section 45-5. The Live Theater Production Tax Credit Act
20is amended by changing Sections 10-10, 10-20, and 10-40 as
21follows:
 
22    (35 ILCS 17/10-10)
23    Sec. 10-10. Definitions. As used in this Act:

 

 

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1    "Accredited theater production" means a for-profit live
2stage presentation in a qualified production facility, as
3defined in this Section, that is either (i) a pre-Broadway
4production or (ii) a long-run production for which the
5aggregate Illinois labor and marketing expenditures exceed
6$100,000. For credits awarded under this Act on or after July
71, 2022 in State Fiscal Year 2023, "accredited theater
8production" also includes any commercial Broadway touring
9show. For credits awarded under this Act on or after July 1,
102024, "accredited theater production" also includes non-profit
11theater productions.
12    "Commercial Broadway touring show" means a production that
13(i) is performed in a qualified production facility and plays
14in more than 2 other markets in North America outside of
15Illinois within 12 months of its Illinois presentation and
16(ii) has Illinois production spending of not less than
17$100,000, as shown on the applicant's application for the
18credit.
19    "Pre-Broadway production" means a live stage production
20that, (i) in its original or adaptive version, is performed in
21a qualified production facility with the goal of having a
22presentation scheduled for Broadway's Theater District in New
23York City within 12 months after its Illinois presentation and
24(ii) has Illinois production spending of not less than
25$100,000, as shown on the applicant's application for the
26credit.

 

 

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1    "Long-run production" means a live stage production that
2is performed in a qualified production facility for longer
3than 8 weeks, with at least 6 performances per week, and
4includes a production that spans the end of one tax year and
5the commencement of a new tax year that, in combination, meets
6the criteria set forth in this definition making it a long-run
7production eligible for a theater tax credit award in each tax
8year or portion thereof.
9    "Non-profit theater production" means a live stage
10production that is at least 75 minutes in length with a written
11script that (i) is produced by a 501(c)3 non-profit registered
12in the State of Illinois for at least 5 years, (ii) has
13Illinois production spending of not less than $10,000, as
14shown on the applicant's application for the credit, and (iii)
15has a minimum annual operating budget of $25,000 or more, as
16shown on the applicant's application for the credit.
17    "Accredited theater production certificate" means a
18certificate issued by the Department certifying that the
19production is an accredited theater production that meets the
20guidelines of this Act.
21    "Applicant" means a taxpayer that is a theater producer,
22owner, licensee, operator, or presenter that is presenting or
23has presented a live stage presentation located within the
24State of Illinois who:
25        (1) owns or licenses the theatrical rights of the
26    stage presentation for the Illinois production period; or

 

 

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1        (2) has contracted or will contract directly with the
2    owner or licensee of the theatrical rights or a person
3    acting on behalf of the owner or licensee to provide live
4    performances of the production.
5    An applicant that directly or indirectly owns, controls,
6or operates multiple qualified production facilities shall be
7presumed to be and considered for the purposes of this Act to
8be a single applicant; provided, however, that as to each of
9the applicant's qualified production facilities, the applicant
10shall be eligible to separately and contemporaneously (i)
11apply for and obtain accredited theater production
12certificates, (ii) stage accredited theater productions, and
13(iii) apply for and receive a tax credit award certificate for
14each of the applicant's accredited theater productions
15performed at each of the applicant's qualified production
16facilities.
17    "Department" means the Department of Commerce and Economic
18Opportunity.
19    "Director" means the Director of the Department.
20    "Illinois labor expenditure" means gross salary or wages
21including, but not limited to, taxes, benefits, and any other
22consideration incurred or paid to non-talent employees of the
23applicant for services rendered to and on behalf of the
24accredited theater production. To qualify as an Illinois labor
25expenditure, the expenditure must be:
26        (1) incurred or paid by the applicant on or after the

 

 

10300HB4951sam002- 170 -LRB103 38094 HLH 74177 a

1    effective date of the Act for services related to any
2    portion of an accredited theater production from its
3    pre-production stages, including, but not limited to, the
4    writing of the script, casting, hiring of service
5    providers, purchases from vendors, marketing, advertising,
6    public relations, load in, rehearsals, performances, other
7    accredited theater production related activities, and load
8    out;
9        (2) directly attributable to the accredited theater
10    production;
11        (3) limited to the first $100,000 of wages incurred or
12    paid to each employee of an accredited theater production
13    in each tax year;
14        (4) included in the federal income tax basis of the
15    property;
16        (5) paid in the tax year for which the applicant is
17    claiming the tax credit award, or no later than 60 days
18    after the end of the tax year;
19        (6) paid to persons residing in Illinois at the time
20    payments were made; and
21        (7) reasonable in the circumstances.
22    "Illinois production spending" means any and all expenses
23directly or indirectly incurred relating to an accredited
24theater production presented in any qualified production
25facility of the applicant, including, but not limited to,
26expenditures for:

 

 

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1        (1) national marketing, public relations, and the
2    creation and placement of print, electronic, television,
3    billboard, and other forms of advertising; and
4        (2) the construction and fabrication of scenic
5    materials and elements; provided, however, that the
6    maximum amount of expenditures attributable to the
7    construction and fabrication of scenic materials and
8    elements eligible for a tax credit award shall not exceed
9    $500,000 per applicant per production in any single tax
10    year.
11    "Qualified production facility" means a facility located
12in the State in which live theatrical productions are, or are
13intended to be, exclusively presented that contains at least
14one stage, a seating capacity of 1,200 or more seats or, if the
15live theater production is a non-profit theater production, a
16seating capacity of 50 or more seats, and dressing rooms,
17storage areas, and other ancillary amenities necessary for the
18accredited theater production.
19    "Tax credit award" means the issuance to a taxpayer by the
20Department of a tax credit award in conformance with Sections
2110-40 and 10-45 of this Act.
22    "Tax year" means a calendar year for the period January 1
23to and including December 31.
24(Source: P.A. 102-1112, eff. 12-21-22.)
 
25    (35 ILCS 17/10-20)

 

 

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1    Sec. 10-20. Tax credit award. Subject to the conditions
2set forth in this Act, an applicant is entitled to a tax credit
3award as approved by the Department for qualifying Illinois
4labor expenditures and Illinois production spending for each
5tax year in which the applicant is awarded an accredited
6theater production certificate issued by the Department. The
7amount of tax credits awarded pursuant to this Act shall not
8exceed $2,000,000 in any State fiscal year ending on or before
9June 30, 2022. The , except that the amount of tax credits
10awarded pursuant to this Act for the State fiscal year ending
11on June 30, 2023 or the State fiscal year ending on June 30,
122024 shall not exceed $4,000,000. For the State fiscal year
13ending on June 30, 2023 and the State fiscal year ending on
14June 30, 2024, no more than $2,000,000 in credits may be
15awarded in either of those fiscal years to accredited theater
16productions that are not commercial Broadway touring shows,
17and no more than $2,000,000 in credits may be awarded in either
18of those fiscal years to commercial Broadway touring shows.
19For State fiscal years ending on or after June 30, 2025, the
20amount of tax credits awarded under this Act shall not exceed
21$6,000,000, with no more than $2,000,000 in credits awarded
22for long-run productions and pre-Broadway productions, no more
23than $2,000,000 in credits awarded for commercial Broadway
24touring shows, and no more than $2,000,000 in credits awarded
25for non-profit theater productions. In the case of credits
26awarded under this Act for non-profit theater productions, no

 

 

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1more than $100,000 in credits may be awarded to any single
2non-profit theater production. Credits shall be awarded on a
3first-come, first-served basis. Notwithstanding the foregoing,
4if the amount of credits applied for in any fiscal year exceeds
5the amount authorized to be awarded under this Section, the
6excess credit amount shall be awarded in the next fiscal year
7in which credits remain available for award and shall be
8treated as having been applied for on the first day of that
9fiscal year.
10(Source: P.A. 102-700, eff. 4-19-22; 102-1112, eff. 12-21-22.)
 
11    (35 ILCS 17/10-40)
12    Sec. 10-40. Issuance of Tax Credit Award Certificate.
13    (a) In order to qualify for a tax credit award under this
14Act, an applicant must file an application for each accredited
15theater production at each of the applicant's qualified
16production facilities, on forms prescribed by the Department,
17providing information necessary to calculate the tax credit
18award and any additional information as reasonably required by
19the Department.
20    (b) Upon satisfactory review of the application, the
21Department shall issue a tax credit award certificate stating
22the amount of the tax credit award to which the applicant is
23entitled for that tax year and shall contemporaneously notify
24the applicant and Illinois Department of Revenue in accordance
25with Section 222 of the Illinois Income Tax Act or, if the

 

 

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1applicant is a nonprofit theater production, subsection (k) of
2Section 704A of the Illinois Income Tax Act, as applicable.
3(Source: P.A. 97-636, eff. 6-1-12.)
 
4    Section 45-10. The Illinois Income Tax Act is amended by
5changing Sections 222 and 704A as follows:
 
6    (35 ILCS 5/222)
7    Sec. 222. Live theater production credit.
8    (a) For tax years beginning on or after January 1, 2012 and
9beginning prior to January 1, 2027, a taxpayer who has
10received a tax credit award under the Live Theater Production
11Tax Credit Act for a long-run production, a pre-Broadway
12production, or a commercial Broadway touring show is entitled
13to a credit against the taxes imposed under subsections (a)
14and (b) of Section 201 of this Act in an amount determined
15under that Act by the Department of Commerce and Economic
16Opportunity.
17    (b) For taxable years ending before December 31, 2023, if
18the taxpayer is a partnership, limited liability partnership,
19limited liability company, or Subchapter S corporation, the
20tax credit award is allowed to the partners, unit holders, or
21shareholders in accordance with the determination of income
22and distributive share of income under Sections 702 and 704
23and Subchapter S of the Internal Revenue Code. For taxable
24years ending on or after December 31, 2023, if the taxpayer is

 

 

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1a partnership or Subchapter S corporation, then the provisions
2of Section 251 apply.
3    (c) A sale, assignment, or transfer of the tax credit
4award may be made by the taxpayer earning the credit within one
5year after the credit is awarded in accordance with rules
6adopted by the Department of Commerce and Economic
7Opportunity.
8    (d) The Department of Revenue, in cooperation with the
9Department of Commerce and Economic Opportunity, shall adopt
10rules to enforce and administer the provisions of this
11Section.
12    (e) The tax credit award may not be carried back. If the
13amount of the credit exceeds the tax liability for the year,
14the excess may be carried forward and applied to the tax
15liability of the 5 tax years following the excess credit year.
16The tax credit award shall be applied to the earliest year for
17which there is a tax liability. If there are credits from more
18than one tax year that are available to offset liability, the
19earlier credit shall be applied first. In no event may a credit
20under this Section reduce the taxpayer's liability to less
21than zero.
22(Source: P.A. 102-16, eff. 6-17-21; 103-396, eff. 1-1-24.)
 
23    (35 ILCS 5/704A)
24    Sec. 704A. Employer's return and payment of tax withheld.
25    (a) In general, every employer who deducts and withholds

 

 

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1or is required to deduct and withhold tax under this Act on or
2after January 1, 2008 shall make those payments and returns as
3provided in this Section.
4    (b) Returns. Every employer shall, in the form and manner
5required by the Department, make returns with respect to taxes
6withheld or required to be withheld under this Article 7 for
7each quarter beginning on or after January 1, 2008, on or
8before the last day of the first month following the close of
9that quarter.
10    (c) Payments. With respect to amounts withheld or required
11to be withheld on or after January 1, 2008:
12        (1) Semi-weekly payments. For each calendar year, each
13    employer who withheld or was required to withhold more
14    than $12,000 during the one-year period ending on June 30
15    of the immediately preceding calendar year, payment must
16    be made:
17            (A) on or before each Friday of the calendar year,
18        for taxes withheld or required to be withheld on the
19        immediately preceding Saturday, Sunday, Monday, or
20        Tuesday;
21            (B) on or before each Wednesday of the calendar
22        year, for taxes withheld or required to be withheld on
23        the immediately preceding Wednesday, Thursday, or
24        Friday.
25        Beginning with calendar year 2011, payments made under
26    this paragraph (1) of subsection (c) must be made by

 

 

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1    electronic funds transfer.
2        (2) Semi-weekly payments. Any employer who withholds
3    or is required to withhold more than $12,000 in any
4    quarter of a calendar year is required to make payments on
5    the dates set forth under item (1) of this subsection (c)
6    for each remaining quarter of that calendar year and for
7    the subsequent calendar year.
8        (3) Monthly payments. Each employer, other than an
9    employer described in items (1) or (2) of this subsection,
10    shall pay to the Department, on or before the 15th day of
11    each month the taxes withheld or required to be withheld
12    during the immediately preceding month.
13        (4) Payments with returns. Each employer shall pay to
14    the Department, on or before the due date for each return
15    required to be filed under this Section, any tax withheld
16    or required to be withheld during the period for which the
17    return is due and not previously paid to the Department.
18    (d) Regulatory authority. The Department may, by rule:
19        (1) Permit employers, in lieu of the requirements of
20    subsections (b) and (c), to file annual returns due on or
21    before January 31 of the year for taxes withheld or
22    required to be withheld during the previous calendar year
23    and, if the aggregate amounts required to be withheld by
24    the employer under this Article 7 (other than amounts
25    required to be withheld under Section 709.5) do not exceed
26    $1,000 for the previous calendar year, to pay the taxes

 

 

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1    required to be shown on each such return no later than the
2    due date for such return.
3        (2) Provide that any payment required to be made under
4    subsection (c)(1) or (c)(2) is deemed to be timely to the
5    extent paid by electronic funds transfer on or before the
6    due date for deposit of federal income taxes withheld
7    from, or federal employment taxes due with respect to, the
8    wages from which the Illinois taxes were withheld.
9        (3) Designate one or more depositories to which
10    payment of taxes required to be withheld under this
11    Article 7 must be paid by some or all employers.
12        (4) Increase the threshold dollar amounts at which
13    employers are required to make semi-weekly payments under
14    subsection (c)(1) or (c)(2).
15    (e) Annual return and payment. Every employer who deducts
16and withholds or is required to deduct and withhold tax from a
17person engaged in domestic service employment, as that term is
18defined in Section 3510 of the Internal Revenue Code, may
19comply with the requirements of this Section with respect to
20such employees by filing an annual return and paying the taxes
21required to be deducted and withheld on or before the 15th day
22of the fourth month following the close of the employer's
23taxable year. The Department may allow the employer's return
24to be submitted with the employer's individual income tax
25return or to be submitted with a return due from the employer
26under Section 1400.2 of the Unemployment Insurance Act.

 

 

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1    (f) Magnetic media and electronic filing. With respect to
2taxes withheld in calendar years prior to 2017, any W-2 Form
3that, under the Internal Revenue Code and regulations
4promulgated thereunder, is required to be submitted to the
5Internal Revenue Service on magnetic media or electronically
6must also be submitted to the Department on magnetic media or
7electronically for Illinois purposes, if required by the
8Department.
9    With respect to taxes withheld in 2017 and subsequent
10calendar years, the Department may, by rule, require that any
11return (including any amended return) under this Section and
12any W-2 Form that is required to be submitted to the Department
13must be submitted on magnetic media or electronically.
14    The due date for submitting W-2 Forms shall be as
15prescribed by the Department by rule.
16    (g) For amounts deducted or withheld after December 31,
172009, a taxpayer who makes an election under subsection (f) of
18Section 5-15 of the Economic Development for a Growing Economy
19Tax Credit Act for a taxable year shall be allowed a credit
20against payments due under this Section for amounts withheld
21during the first calendar year beginning after the end of that
22taxable year equal to the amount of the credit for the
23incremental income tax attributable to full-time employees of
24the taxpayer awarded to the taxpayer by the Department of
25Commerce and Economic Opportunity under the Economic
26Development for a Growing Economy Tax Credit Act for the

 

 

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1taxable year and credits not previously claimed and allowed to
2be carried forward under Section 211(4) of this Act as
3provided in subsection (f) of Section 5-15 of the Economic
4Development for a Growing Economy Tax Credit Act. The credit
5or credits may not reduce the taxpayer's obligation for any
6payment due under this Section to less than zero. If the amount
7of the credit or credits exceeds the total payments due under
8this Section with respect to amounts withheld during the
9calendar year, the excess may be carried forward and applied
10against the taxpayer's liability under this Section in the
11succeeding calendar years as allowed to be carried forward
12under paragraph (4) of Section 211 of this Act. The credit or
13credits shall be applied to the earliest year for which there
14is a tax liability. If there are credits from more than one
15taxable year that are available to offset a liability, the
16earlier credit shall be applied first. Each employer who
17deducts and withholds or is required to deduct and withhold
18tax under this Act and who retains income tax withholdings
19under subsection (f) of Section 5-15 of the Economic
20Development for a Growing Economy Tax Credit Act must make a
21return with respect to such taxes and retained amounts in the
22form and manner that the Department, by rule, requires and pay
23to the Department or to a depositary designated by the
24Department those withheld taxes not retained by the taxpayer.
25For purposes of this subsection (g), the term taxpayer shall
26include taxpayer and members of the taxpayer's unitary

 

 

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1business group as defined under paragraph (27) of subsection
2(a) of Section 1501 of this Act. This Section is exempt from
3the provisions of Section 250 of this Act. No credit awarded
4under the Economic Development for a Growing Economy Tax
5Credit Act for agreements entered into on or after January 1,
62015 may be credited against payments due under this Section.
7    (g-1) For amounts deducted or withheld after December 31,
82024, a taxpayer who makes an election under the Reimagining
9Energy and Vehicles in Illinois Act shall be allowed a credit
10against payments due under this Section for amounts withheld
11during the first quarterly reporting period beginning after
12the certificate is issued equal to the portion of the REV
13Illinois Credit attributable to the incremental income tax
14attributable to new employees and retained employees as
15certified by the Department of Commerce and Economic
16Opportunity pursuant to an agreement with the taxpayer under
17the Reimagining Energy and Vehicles in Illinois Act for the
18taxable year. The credit or credits may not reduce the
19taxpayer's obligation for any payment due under this Section
20to less than zero. If the amount of the credit or credits
21exceeds the total payments due under this Section with respect
22to amounts withheld during the quarterly reporting period, the
23excess may be carried forward and applied against the
24taxpayer's liability under this Section in the succeeding
25quarterly reporting period as allowed to be carried forward
26under paragraph (4) of Section 211 of this Act. The credit or

 

 

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1credits shall be applied to the earliest quarterly reporting
2period for which there is a tax liability. If there are credits
3from more than one quarterly reporting period that are
4available to offset a liability, the earlier credit shall be
5applied first. Each employer who deducts and withholds or is
6required to deduct and withhold tax under this Act and who
7retains income tax withholdings this subsection must make a
8return with respect to such taxes and retained amounts in the
9form and manner that the Department, by rule, requires and pay
10to the Department or to a depositary designated by the
11Department those withheld taxes not retained by the taxpayer.
12For purposes of this subsection (g-1), the term taxpayer shall
13include taxpayer and members of the taxpayer's unitary
14business group as defined under paragraph (27) of subsection
15(a) of Section 1501 of this Act. This Section is exempt from
16the provisions of Section 250 of this Act.
17    (g-2) For amounts deducted or withheld after December 31,
182024, a taxpayer who makes an election under the Manufacturing
19Illinois Chips for Real Opportunity (MICRO) Act shall be
20allowed a credit against payments due under this Section for
21amounts withheld during the first quarterly reporting period
22beginning after the certificate is issued equal to the portion
23of the MICRO Illinois Credit attributable to the incremental
24income tax attributable to new employees and retained
25employees as certified by the Department of Commerce and
26Economic Opportunity pursuant to an agreement with the

 

 

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1taxpayer under the Manufacturing Illinois Chips for Real
2Opportunity (MICRO) Act for the taxable year. The credit or
3credits may not reduce the taxpayer's obligation for any
4payment due under this Section to less than zero. If the amount
5of the credit or credits exceeds the total payments due under
6this Section with respect to amounts withheld during the
7quarterly reporting period, the excess may be carried forward
8and applied against the taxpayer's liability under this
9Section in the succeeding quarterly reporting period as
10allowed to be carried forward under paragraph (4) of Section
11211 of this Act. The credit or credits shall be applied to the
12earliest quarterly reporting period for which there is a tax
13liability. If there are credits from more than one quarterly
14reporting period that are available to offset a liability, the
15earlier credit shall be applied first. Each employer who
16deducts and withholds or is required to deduct and withhold
17tax under this Act and who retains income tax withholdings
18this subsection must make a return with respect to such taxes
19and retained amounts in the form and manner that the
20Department, by rule, requires and pay to the Department or to a
21depositary designated by the Department those withheld taxes
22not retained by the taxpayer. For purposes of this subsection,
23the term taxpayer shall include taxpayer and members of the
24taxpayer's unitary business group as defined under paragraph
25(27) of subsection (a) of Section 1501 of this Act. This
26Section is exempt from the provisions of Section 250 of this

 

 

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1Act.
2    (h) An employer may claim a credit against payments due
3under this Section for amounts withheld during the first
4calendar year ending after the date on which a tax credit
5certificate was issued under Section 35 of the Small Business
6Job Creation Tax Credit Act. The credit shall be equal to the
7amount shown on the certificate, but may not reduce the
8taxpayer's obligation for any payment due under this Section
9to less than zero. If the amount of the credit exceeds the
10total payments due under this Section with respect to amounts
11withheld during the calendar year, the excess may be carried
12forward and applied against the taxpayer's liability under
13this Section in the 5 succeeding calendar years. The credit
14shall be applied to the earliest year for which there is a tax
15liability. If there are credits from more than one calendar
16year that are available to offset a liability, the earlier
17credit shall be applied first. This Section is exempt from the
18provisions of Section 250 of this Act.
19    (i) Each employer with 50 or fewer full-time equivalent
20employees during the reporting period may claim a credit
21against the payments due under this Section for each qualified
22employee in an amount equal to the maximum credit allowable.
23The credit may be taken against payments due for reporting
24periods that begin on or after January 1, 2020, and end on or
25before December 31, 2027. An employer may not claim a credit
26for an employee who has worked fewer than 90 consecutive days

 

 

10300HB4951sam002- 185 -LRB103 38094 HLH 74177 a

1immediately preceding the reporting period; however, such
2credits may accrue during that 90-day period and be claimed
3against payments under this Section for future reporting
4periods after the employee has worked for the employer at
5least 90 consecutive days. In no event may the credit exceed
6the employer's liability for the reporting period. Each
7employer who deducts and withholds or is required to deduct
8and withhold tax under this Act and who retains income tax
9withholdings under this subsection must make a return with
10respect to such taxes and retained amounts in the form and
11manner that the Department, by rule, requires and pay to the
12Department or to a depositary designated by the Department
13those withheld taxes not retained by the employer.
14    For each reporting period, the employer may not claim a
15credit or credits for more employees than the number of
16employees making less than the minimum or reduced wage for the
17current calendar year during the last reporting period of the
18preceding calendar year. Notwithstanding any other provision
19of this subsection, an employer shall not be eligible for
20credits for a reporting period unless the average wage paid by
21the employer per employee for all employees making less than
22$55,000 during the reporting period is greater than the
23average wage paid by the employer per employee for all
24employees making less than $55,000 during the same reporting
25period of the prior calendar year.
26    For purposes of this subsection (i):

 

 

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1    "Compensation paid in Illinois" has the meaning ascribed
2to that term under Section 304(a)(2)(B) of this Act.
3    "Employer" and "employee" have the meaning ascribed to
4those terms in the Minimum Wage Law, except that "employee"
5also includes employees who work for an employer with fewer
6than 4 employees. Employers that operate more than one
7establishment pursuant to a franchise agreement or that
8constitute members of a unitary business group shall aggregate
9their employees for purposes of determining eligibility for
10the credit.
11    "Full-time equivalent employees" means the ratio of the
12number of paid hours during the reporting period and the
13number of working hours in that period.
14    "Maximum credit" means the percentage listed below of the
15difference between the amount of compensation paid in Illinois
16to employees who are paid not more than the required minimum
17wage reduced by the amount of compensation paid in Illinois to
18employees who were paid less than the current required minimum
19wage during the reporting period prior to each increase in the
20required minimum wage on January 1. If an employer pays an
21employee more than the required minimum wage and that employee
22previously earned less than the required minimum wage, the
23employer may include the portion that does not exceed the
24required minimum wage as compensation paid in Illinois to
25employees who are paid not more than the required minimum
26wage.

 

 

10300HB4951sam002- 187 -LRB103 38094 HLH 74177 a

1        (1) 25% for reporting periods beginning on or after
2    January 1, 2020 and ending on or before December 31, 2020;
3        (2) 21% for reporting periods beginning on or after
4    January 1, 2021 and ending on or before December 31, 2021;
5        (3) 17% for reporting periods beginning on or after
6    January 1, 2022 and ending on or before December 31, 2022;
7        (4) 13% for reporting periods beginning on or after
8    January 1, 2023 and ending on or before December 31, 2023;
9        (5) 9% for reporting periods beginning on or after
10    January 1, 2024 and ending on or before December 31, 2024;
11        (6) 5% for reporting periods beginning on or after
12    January 1, 2025 and ending on or before December 31, 2025.
13    The amount computed under this subsection may continue to
14be claimed for reporting periods beginning on or after January
151, 2026 and:
16        (A) ending on or before December 31, 2026 for
17    employers with more than 5 employees; or
18        (B) ending on or before December 31, 2027 for
19    employers with no more than 5 employees.
20    "Qualified employee" means an employee who is paid not
21more than the required minimum wage and has an average wage
22paid per hour by the employer during the reporting period
23equal to or greater than his or her average wage paid per hour
24by the employer during each reporting period for the
25immediately preceding 12 months. A new qualified employee is
26deemed to have earned the required minimum wage in the

 

 

10300HB4951sam002- 188 -LRB103 38094 HLH 74177 a

1preceding reporting period.
2    "Reporting period" means the quarter for which a return is
3required to be filed under subsection (b) of this Section.
4    (j) For reporting periods beginning on or after January 1,
52023, if a private employer grants all of its employees the
6option of taking a paid leave of absence of at least 30 days
7for the purpose of serving as an organ donor or bone marrow
8donor, then the private employer may take a credit against the
9payments due under this Section in an amount equal to the
10amount withheld under this Section with respect to wages paid
11while the employee is on organ donation leave, not to exceed
12$1,000 in withholdings for each employee who takes organ
13donation leave. To be eligible for the credit, such a leave of
14absence must be taken without loss of pay, vacation time,
15compensatory time, personal days, or sick time for at least
16the first 30 days of the leave of absence. The private employer
17shall adopt rules governing organ donation leave, including
18rules that (i) establish conditions and procedures for
19requesting and approving leave and (ii) require medical
20documentation of the proposed organ or bone marrow donation
21before leave is approved by the private employer. A private
22employer must provide, in the manner required by the
23Department, documentation from the employee's medical
24provider, which the private employer receives from the
25employee, that verifies the employee's organ donation. The
26private employer must also provide, in the manner required by

 

 

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1the Department, documentation that shows that a qualifying
2organ donor leave policy was in place and offered to all
3qualifying employees at the time the leave was taken. For the
4private employer to receive the tax credit, the employee
5taking organ donor leave must allow for the applicable medical
6records to be disclosed to the Department. If the private
7employer cannot provide the required documentation to the
8Department, then the private employer is ineligible for the
9credit under this Section. A private employer must also
10provide, in the form required by the Department, any
11additional documentation or information required by the
12Department to administer the credit under this Section. The
13credit under this subsection (j) shall be taken within one
14year after the date upon which the organ donation leave
15begins. If the leave taken spans into a second tax year, the
16employer qualifies for the allowable credit in the later of
17the 2 years. If the amount of credit exceeds the tax liability
18for the year, the excess may be carried and applied to the tax
19liability for the 3 taxable years following the excess credit
20year. The tax credit shall be applied to the earliest year for
21which there is a tax liability. If there are credits for more
22than one year that are available to offset liability, the
23earlier credit shall be applied first.
24    Nothing in this subsection (j) prohibits a private
25employer from providing an unpaid leave of absence to its
26employees for the purpose of serving as an organ donor or bone

 

 

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1marrow donor; however, if the employer's policy provides for
2fewer than 30 days of paid leave for organ or bone marrow
3donation, then the employer shall not be eligible for the
4credit under this Section.
5    As used in this subsection (j):
6    "Organ" means any biological tissue of the human body that
7may be donated by a living donor, including, but not limited
8to, the kidney, liver, lung, pancreas, intestine, bone, skin,
9or any subpart of those organs.
10    "Organ donor" means a person from whose body an organ is
11taken to be transferred to the body of another person.
12    "Private employer" means a sole proprietorship,
13corporation, partnership, limited liability company, or other
14entity with one or more employees. "Private employer" does not
15include a municipality, county, State agency, or other public
16employer.
17    This subsection (j) is exempt from the provisions of
18Section 250 of this Act.
19    (k) For reporting periods beginning on or after January 1,
202025 and before January 1, 2027, an employer may claim a credit
21against payments due under this Section for amounts withheld
22during the first reporting period to occur after the date on
23which a tax credit certificate is issued for a non-profit
24theater production under Section 10 of the Live Theater
25Production Tax Credit Act. The credit shall be equal to the
26amount shown on the certificate, but may not reduce the

 

 

10300HB4951sam002- 191 -LRB103 38094 HLH 74177 a

1taxpayer's obligation for any payment due under this Article
2to less than zero. If the amount of the credit exceeds the
3total amount due under this Article with respect to amounts
4withheld during the first reporting period to occur after the
5date on which a tax credit certificate is issued, the excess
6may be carried forward and applied against the taxpayer's
7liability under this Section for reporting periods that occur
8in the 5 succeeding calendar years. The excess credit shall be
9applied to the earliest reporting period for which there is a
10payment due under this Article. If there are credits from more
11than one reporting period that are available to offset a
12liability, the earlier credit shall be applied first. The
13Department of Revenue, in cooperation with the Department of
14Commerce and Economic Opportunity, shall adopt rules to
15enforce and administer the provisions of this subsection.
16(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21;
17102-700, Article 30, Section 30-5, eff. 4-19-22; 102-700,
18Article 110, Section 110-905, eff. 4-19-22; 102-1125, eff.
192-3-23.)
 
20
ARTICLE 50.

 
21    Section 50-1. Short title. This Act may be cited as the
22Music and Musicians Tax Credit and Jobs Act. References in
23this Article to "this Act" mean this Article.
 

 

 

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1    Section 50-5. Purpose. The State's economy depends heavily
2on music, professional musicians, music teachers, and
3educators. Illinois is a cultural crown jewel of the United
4States. Illinois and Chicago boast a robust history and
5community of creative artists, writers, musicians, architects,
6orchestras, live music and entertainment venues, civic operas,
7recording studios, and universities. The COVID-19 pandemic and
8the economic fallout that ensued brought on especially
9difficult circumstances for the live entertainment industry at
10large. Throughout the State, this has meant the closure of and
11overall decrease in culturally engaging aspects of Illinois
12cities from Cairo to Chicago.
13    According to the Americans for the Arts Action Fund, arts
14and culture represent 3.1% of the State's gross domestic
15product and 190,078 jobs. In fact, in 2020, Illinois arts and
16culture was larger than the State's agriculture industry. In
172015, nonprofit arts organizations in the State generated
18$4,000,000,000 in economic activity that supported 111,068
19jobs and generated $478,500,000 in State and local government
20revenue. In Chicago specifically, nonprofit arts groups
21generated $3,200,000,000 in total economic activity and
22$336,500,000 in State and local government revenue. Audiences
23exceeded 36,000,000 people.
24    Yet, during the COVID-19 pandemic, the arts suffered. As a
25result, Illinois arts and culture value added decreased by 9%
26between 2019 and 2020 and employment decreased by 12%.

 

 

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1Ultimately, $3,200,000,000 and 26,644 jobs were lost. Even as
2live performances have resumed, audience sizes remain below
3pre-pandemic levels. Regional theaters, local orchestras,
4opera houses, and performing arts organizations are reporting
5persistent drops in attendance.
6    It is the policy of this State to promote and encourage the
7training and hiring of Illinois residents who represent the
8diversity of the Illinois population through the creation and
9implementation of training, education, and recruitment
10programs organized in cooperation with Illinois colleges and
11universities, labor organizations, and the commercial
12for-profit music industry.
 
13    Section 50-10. Definitions.
14    "Department" means the Department of Commerce and Economic
15Opportunity.
16    "Expenditure in the State" means (i) an expenditure to
17acquire, from a source within the State, property that is
18subject to tax under the Use Tax Act, the Service Use Tax Act,
19the Service Occupation Tax Act, or the Retailers' Occupation
20Tax Act or (ii) an expenditure for compensation for services
21performed within the State that is subject to State income tax
22under the Illinois Income Tax Act.
23    "Illinois labor expenditure" means gross salary or wages,
24including, but not limited to, taxes, benefits, and any other
25consideration incurred or paid to artist employees of the

 

 

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1applicant for services rendered to and on behalf of the
2qualified music company, provided that the expenditure is:
3        (1) incurred or paid by the applicant on or after the
4    effective date of this Act for services related to any
5    portion of a qualified music company from rehearsals,
6    performances, and any other qualified music company
7    related activities;
8        (2) limited to the first $100,000 of wages incurred or
9    paid to each employee of a qualified music production in
10    each tax year;
11        (3) paid in the tax year for which the applicant is
12    claiming the tax credit award;
13        (4) paid to persons residing in Illinois at the time
14    payments were made; and
15        (5) reasonable under the circumstances.
16    "Qualified music company" means an entity that (i) is
17authorized to do business in Illinois, (ii) is engaged
18directly or indirectly in the production, distribution, or
19promotion of music, (iii) is certified by the Department as
20meeting the eligibility requirements of this Act, and (iv) has
21executed a contract with the Department providing the terms
22and conditions for its participation.
23    "Qualified music company payroll" or "QMC payroll" means
24wages reported by the qualified music company in box 1 of each
25W-2 form prepared for an employee of the qualified music
26company who is an Illinois resident.

 

 

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1    "Resident copyright" means the copyright of a musical
2composition written by an Illinois resident or owned by an
3Illinois-domiciled music company, as evidenced by documents of
4ownership, including, but not limited to, registration with
5the United States Copyright Office.
6    "Sound recording" means a recording of music, poetry, or a
7spoken-word performance made, in whole or in part, in
8Illinois. "Sound recording" does not include the audio
9portions of dialogue or words spoken and recorded as part of
10television news coverage or athletic events.
11    "Sound recording production company" means a company
12engaged in the business of producing sound recordings. "Sound
13recording production company" does not include any person or
14company, or any company owned, affiliated, or controlled, in
15whole or in part, by any company or person, that is in default
16on a loan made by the State or a loan guaranteed by the State,
17nor which has ever declared bankruptcy under which an
18obligation of the company or person to pay or repay public
19funds or moneys was discharged as a part of the bankruptcy.
20    "State-certified production" means a sound recording
21production, or a series of productions, including but not
22limited to master and demonstration recordings, occurring over
23the course of a 12-month period, and the base
24production-related investment that is approved by the
25Department within 180 days after receipt by the Department of
26a complete application for initial certification of a

 

 

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1production. If the production is not approved within 180 days,
2the Department shall provide a written report to the Senate
3Executive Committee and the House Executive Committee that
4states the reason why the production has not been approved.
5    "Tax credit award" means the issuance to a taxpayer by the
6Department of a tax credit award against the taxes imposed by
7subsections (a) and (b) of Section 201 of the Illinois Income
8Tax Act as provided in this Act.
 
9    Section 50-15. Powers of the Department. The Department,
10in addition to those powers granted under the Civil
11Administrative Code of Illinois, is granted and has all the
12powers necessary or convenient to carry out and effectuate the
13purposes and provisions of this Act, including, but not
14limited to, the power and authority to:
15        (1) adopt rules that are necessary and appropriate for
16    the administration of this Act;
17        (2) establish forms for applications, notifications,
18    contracts, or any other agreements with respect to tax
19    credits under this Act and to accept applications for tax
20    credits under this Act at any time during the year;
21        (3) assist applicants for tax credits under this Act
22    to promote, foster, and support sound recording and live
23    theater development and production and its related job
24    creation or retention within the State;
25        (4) gather information and conduct inquiries, as

 

 

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1    provided in this Act, required for the Department to
2    comply with the provisions of this Act and, without
3    limitation, to obtain information with respect to
4    applicants for the purpose of making any designations or
5    certifications necessary or desirable to assist the
6    Department with any recommendation or guidance in the
7    furtherance of the purposes of this Act and relating to
8    applicants' participation in training, education, and
9    recruitment programs that are organized in cooperation
10    with Illinois colleges and universities or labor
11    organizations designed to promote and encourage the
12    training and hiring of Illinois residents who represent
13    the diversity of the Illinois population;
14        (5) provide for sufficient personnel to permit
15    administrative, staffing, operating, and related support
16    required to adequately discharge the Department's duties
17    and responsibilities under this Act from funds as may be
18    appropriated by the General Assembly for the
19    administration of this Act; and
20        (6) require that the applicant at all times keep
21    proper books and records of accounts relating to the tax
22    credit award, in accordance with generally accepted
23    accounting principles consistently applied, and make those
24    books and records available for reasonable Department
25    inspection and audit, upon reasonable written request by
26    the Department, during the applicant's normal business

 

 

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1    hours. Any documents or data made available to the
2    Department or received by the Department from the
3    applicant by any agent, employee, officer, or service
4    provider shall be deemed confidential and shall not
5    constitute public records to the extent that the documents
6    or data consist of commercial or financial information
7    regarding the operation by the applicant of any theater or
8    any accredited theater production or any recipient of any
9    tax credit award under this Act.
 
10    Section 50-20. Application for certification of qualified
11music company. Any applicant that operates a qualified music
12company located in the State or is proposing to operate a
13qualified music company in the State may apply to the
14Department to have the qualified music company certified by
15the Department as a qualified music company.
 
16    Section 50-25. Review of applications for qualified music
17company certificates.
18     (a) The Department shall issue a qualified music company
19certificate to an applicant if it finds that a preponderance
20of the following conditions exists:
21        (1) the applicant is engaged directly or indirectly in
22    the production, distribution, and promotion of music;
23        (2) the applicant intends to make the expenditure in
24    the State required for certification of the qualified

 

 

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1    music company;
2        (3) the applicant's qualified music company is
3    economically sound and will benefit the people of the
4    State of Illinois by increasing opportunities for
5    employment and will strengthen the economy of Illinois;
6        (4) the following requirements related to the
7    implementation of a diversity plan have been met:
8            (A) the applicant has filed with the Department a
9        diversity plan outlining specific goals for hiring
10        Illinois labor expenditure eligible minority persons
11        and women, as defined in the Business Enterprise for
12        Minorities, Women, and Persons with Disabilities Act,
13        and for using vendors receiving certification under
14        the Business Enterprise for Minorities, Women, and
15        Persons with Disabilities Act;
16            (B) the Department has approved the plan as
17        meeting the requirements established by the Department
18        and verified that the applicant has met or made good
19        faith efforts in achieving those goals; and
20            (C) the Department has adopted any rules that are
21        necessary to ensure compliance with the provisions set
22        forth in this paragraph (4) and any rules that are
23        necessary to show that the applicant's plan reflects
24        the diversity of the population of this State;
25        (5) the applicant's qualified music company
26    application indicates whether the applicant intends to

 

 

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1    participate in training, education, and recruitment
2    programs that are organized in cooperation with Illinois
3    colleges and universities, labor organizations, and the
4    holders of qualified music company certificates and are
5    designed to promote and encourage the training and hiring
6    of Illinois residents who represent the diversity of
7    Illinois; and
8        (6) the tax credit award will result in an overall
9    positive impact to the State, as determined by the
10    Department using the best available data.
11    (b) If any of the provisions in this Section conflict with
12any existing collective bargaining agreements, the terms and
13conditions of those collective bargaining agreements shall
14control.
15    (c) The Department shall act expeditiously regarding
16approval of applications for qualified music companies so as
17to accommodate the operations and needs of those companies.
 
18    Section 50-30. Training programs for skills in critical
19demand. To accomplish the purposes of this Act, the Department
20may use the training programs provided under Section 605-800
21of the Department of Commerce and Economic Opportunity Law of
22the Civil Administrative Code of Illinois.
 
23    Section 50-35. Issuance of tax credit award certificate.
24    (a) In order to qualify for a tax credit award under this

 

 

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1Act, an applicant must file an application for each qualified
2music company at each of the applicant's qualified facilities,
3on forms prescribed by the Department, providing information
4necessary to calculate the tax credit award and any additional
5information as reasonably required by the Department.
6    (b) Upon satisfactory review of the application, the
7Department shall issue a tax credit award certificate stating
8the amount of the tax credit award to which the applicant is
9entitled for that tax year and shall contemporaneously notify
10the applicant and the Department of Revenue.
11    (c) For tax years beginning on or after January 1, 2025, a
12taxpayer who has been awarded a tax credit under paragraph (b)
13of this Section is entitled to a credit against the taxes
14imposed under subsections (a) and (b) of Section 201 of the
15Illinois Income Tax Act.
 
16    Section 50-40. Amount and payment of the tax credit award.
17    (a) For taxable years beginning on or after January 1,
182025, the Department may award tax credit awards to qualified
19music companies. The award may not exceed 10% of the Illinois
20labor expenditures for the State-certified production if the
21QMC payroll of the qualified music company for the taxable
22year does not exceed $150,000 or 15% of the Illinois labor
23expenditures for the State-certified production if the QMC
24payroll of the qualified music company for the taxable year
25exceeds $150,000, plus all of the following:

 

 

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1        (1) an additional 15% of the Illinois labor
2    expenditures for the State-certified production generated
3    by the employment of Illinois residents in geographic
4    areas of high poverty or high unemployment in each tax
5    year, as determined by the Department; and
6        (2) an additional 7% of the Illinois labor
7    expenditures for the State-certified production generated
8    by the employment of individuals who are employed at a
9    wage of no less than the general prevailing hourly rate as
10    paid for work of a similar character in the locality in
11    which the work is performed; and
12        (3) an additional 7% of the Illinois labor
13    expenditures for the State-certified production incurred
14    by a qualified music company and spent on post-production
15    sound recording for television or film work completed in
16    Illinois.
17    (b) To the extent that the base investment by a qualified
18music company is expended on a sound recording production of a
19resident copyright, the investor shall be allowed an
20additional 10% increase in the base investment rate.
21    (c) The aggregate amount of credits certified for all
22investors pursuant to this Section during any calendar year
23shall not exceed $1,000,000. No more than $200,000 in tax
24credits may be granted per calendar year for any single
25qualified music company.
26    (d) A business is eligible for participation in the

 

 

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1program if the business meets all of the following criteria:
2        (1) The business is engaged directly or indirectly in
3    the production, distribution, and promotion of music.
4        (2) The business is approved by the Director of
5    Commerce and Economic Opportunity.
6    (e) Upon approval of a tax credit award under this Act, the
7Department shall issue a tax credit certificate to the
8applicant.
 
9    Section 50-45. Qualified music program evaluation and
10reports.
11    (a) The Department's qualified music program tax credit
12award evaluation must include:
13        (1) an assessment of the effectiveness of the program
14    in creating and retaining new jobs in Illinois;
15        (2) an assessment of the revenue impact of the
16    program;
17        (3) in the discretion of the Department, a review of
18    the practices and experiences of other states or nations
19    with similar programs; and
20        (4) an assessment of the overall success of the
21    program.
22The Department may make a recommendation to extend, modify, or
23    not extend the program based on the evaluation.
24    (b) At the end of each fiscal quarter, the Department
25shall submit to the General Assembly a report that includes,

 

 

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1without limitation:
2        (1) an assessment of the economic impact of the
3    program, including the number of jobs created and
4    retained, and whether the job positions are entry level,
5    management, vendor, or production related;
6        (2) the amount of qualified music company spending
7    brought to Illinois, including the amount of spending and
8    type of Illinois vendors hired in connection with a
9    qualified music company; and
10        (3) a determination of whether those receiving
11    qualifying Illinois labor expenditure salaries or wages
12    reflect the geographic, racial and ethnic, gender, and
13    income level diversity of the State of Illinois.
14    (c) At the end of each fiscal year, the Department shall
15submit to the General Assembly a report that includes, without
16limitation:
17        (1) the identification of each vendor that provided
18    goods or services that were included in a qualified music
19    company's Illinois spending;
20        (2) a statement of the amount paid to each identified
21    vendor by the qualified music program and whether the
22    vendor is a minority-owned or women-owned business as
23    defined in Section 2 of the Business Enterprise for
24    Minorities, Women, and Persons with Disabilities Act; and
25        (3) a description of the steps taken by the Department
26    to encourage qualified music company to use vendors who

 

 

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1    are minority-owned or women-owned businesses.
 
2    Section 50-50. Program terms and conditions. Any
3documentary materials or data made available or received from
4an applicant by any agent or employee of the Department are
5confidential and are not public records to the extent that the
6materials or data consist of commercial or financial
7information regarding the operation of or the production of
8the applicant or recipient of any tax credit award under this
9Act.
 
10
ARTICLE 52.

 
11    Section 52-3. The Freedom of Information Act is amended by
12changing Section 7.5 as follows:
 
13    (5 ILCS 140/7.5)
14    (Text of Section before amendment by P.A. 103-472)
15    Sec. 7.5. Statutory exemptions. To the extent provided for
16by the statutes referenced below, the following shall be
17exempt from inspection and copying:
18        (a) All information determined to be confidential
19    under Section 4002 of the Technology Advancement and
20    Development Act.
21        (b) Library circulation and order records identifying
22    library users with specific materials under the Library

 

 

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1    Records Confidentiality Act.
2        (c) Applications, related documents, and medical
3    records received by the Experimental Organ Transplantation
4    Procedures Board and any and all documents or other
5    records prepared by the Experimental Organ Transplantation
6    Procedures Board or its staff relating to applications it
7    has received.
8        (d) Information and records held by the Department of
9    Public Health and its authorized representatives relating
10    to known or suspected cases of sexually transmissible
11    disease or any information the disclosure of which is
12    restricted under the Illinois Sexually Transmissible
13    Disease Control Act.
14        (e) Information the disclosure of which is exempted
15    under Section 30 of the Radon Industry Licensing Act.
16        (f) Firm performance evaluations under Section 55 of
17    the Architectural, Engineering, and Land Surveying
18    Qualifications Based Selection Act.
19        (g) Information the disclosure of which is restricted
20    and exempted under Section 50 of the Illinois Prepaid
21    Tuition Act.
22        (h) Information the disclosure of which is exempted
23    under the State Officials and Employees Ethics Act, and
24    records of any lawfully created State or local inspector
25    general's office that would be exempt if created or
26    obtained by an Executive Inspector General's office under

 

 

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1    that Act.
2        (i) Information contained in a local emergency energy
3    plan submitted to a municipality in accordance with a
4    local emergency energy plan ordinance that is adopted
5    under Section 11-21.5-5 of the Illinois Municipal Code.
6        (j) Information and data concerning the distribution
7    of surcharge moneys collected and remitted by carriers
8    under the Emergency Telephone System Act.
9        (k) Law enforcement officer identification information
10    or driver identification information compiled by a law
11    enforcement agency or the Department of Transportation
12    under Section 11-212 of the Illinois Vehicle Code.
13        (l) Records and information provided to a residential
14    health care facility resident sexual assault and death
15    review team or the Executive Council under the Abuse
16    Prevention Review Team Act.
17        (m) Information provided to the predatory lending
18    database created pursuant to Article 3 of the Residential
19    Real Property Disclosure Act, except to the extent
20    authorized under that Article.
21        (n) Defense budgets and petitions for certification of
22    compensation and expenses for court appointed trial
23    counsel as provided under Sections 10 and 15 of the
24    Capital Crimes Litigation Act (repealed). This subsection
25    (n) shall apply until the conclusion of the trial of the
26    case, even if the prosecution chooses not to pursue the

 

 

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1    death penalty prior to trial or sentencing.
2        (o) Information that is prohibited from being
3    disclosed under Section 4 of the Illinois Health and
4    Hazardous Substances Registry Act.
5        (p) Security portions of system safety program plans,
6    investigation reports, surveys, schedules, lists, data, or
7    information compiled, collected, or prepared by or for the
8    Department of Transportation under Sections 2705-300 and
9    2705-616 of the Department of Transportation Law of the
10    Civil Administrative Code of Illinois, the Regional
11    Transportation Authority under Section 2.11 of the
12    Regional Transportation Authority Act, or the St. Clair
13    County Transit District under the Bi-State Transit Safety
14    Act (repealed).
15        (q) Information prohibited from being disclosed by the
16    Personnel Record Review Act.
17        (r) Information prohibited from being disclosed by the
18    Illinois School Student Records Act.
19        (s) Information the disclosure of which is restricted
20    under Section 5-108 of the Public Utilities Act.
21        (t) (Blank).
22        (u) Records and information provided to an independent
23    team of experts under the Developmental Disability and
24    Mental Health Safety Act (also known as Brian's Law).
25        (v) Names and information of people who have applied
26    for or received Firearm Owner's Identification Cards under

 

 

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1    the Firearm Owners Identification Card Act or applied for
2    or received a concealed carry license under the Firearm
3    Concealed Carry Act, unless otherwise authorized by the
4    Firearm Concealed Carry Act; and databases under the
5    Firearm Concealed Carry Act, records of the Concealed
6    Carry Licensing Review Board under the Firearm Concealed
7    Carry Act, and law enforcement agency objections under the
8    Firearm Concealed Carry Act.
9        (v-5) Records of the Firearm Owner's Identification
10    Card Review Board that are exempted from disclosure under
11    Section 10 of the Firearm Owners Identification Card Act.
12        (w) Personally identifiable information which is
13    exempted from disclosure under subsection (g) of Section
14    19.1 of the Toll Highway Act.
15        (x) Information which is exempted from disclosure
16    under Section 5-1014.3 of the Counties Code or Section
17    8-11-21 of the Illinois Municipal Code.
18        (y) Confidential information under the Adult
19    Protective Services Act and its predecessor enabling
20    statute, the Elder Abuse and Neglect Act, including
21    information about the identity and administrative finding
22    against any caregiver of a verified and substantiated
23    decision of abuse, neglect, or financial exploitation of
24    an eligible adult maintained in the Registry established
25    under Section 7.5 of the Adult Protective Services Act.
26        (z) Records and information provided to a fatality

 

 

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1    review team or the Illinois Fatality Review Team Advisory
2    Council under Section 15 of the Adult Protective Services
3    Act.
4        (aa) Information which is exempted from disclosure
5    under Section 2.37 of the Wildlife Code.
6        (bb) Information which is or was prohibited from
7    disclosure by the Juvenile Court Act of 1987.
8        (cc) Recordings made under the Law Enforcement
9    Officer-Worn Body Camera Act, except to the extent
10    authorized under that Act.
11        (dd) Information that is prohibited from being
12    disclosed under Section 45 of the Condominium and Common
13    Interest Community Ombudsperson Act.
14        (ee) Information that is exempted from disclosure
15    under Section 30.1 of the Pharmacy Practice Act.
16        (ff) Information that is exempted from disclosure
17    under the Revised Uniform Unclaimed Property Act.
18        (gg) Information that is prohibited from being
19    disclosed under Section 7-603.5 of the Illinois Vehicle
20    Code.
21        (hh) Records that are exempt from disclosure under
22    Section 1A-16.7 of the Election Code.
23        (ii) Information which is exempted from disclosure
24    under Section 2505-800 of the Department of Revenue Law of
25    the Civil Administrative Code of Illinois.
26        (jj) Information and reports that are required to be

 

 

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1    submitted to the Department of Labor by registering day
2    and temporary labor service agencies but are exempt from
3    disclosure under subsection (a-1) of Section 45 of the Day
4    and Temporary Labor Services Act.
5        (kk) Information prohibited from disclosure under the
6    Seizure and Forfeiture Reporting Act.
7        (ll) Information the disclosure of which is restricted
8    and exempted under Section 5-30.8 of the Illinois Public
9    Aid Code.
10        (mm) Records that are exempt from disclosure under
11    Section 4.2 of the Crime Victims Compensation Act.
12        (nn) Information that is exempt from disclosure under
13    Section 70 of the Higher Education Student Assistance Act.
14        (oo) Communications, notes, records, and reports
15    arising out of a peer support counseling session
16    prohibited from disclosure under the First Responders
17    Suicide Prevention Act.
18        (pp) Names and all identifying information relating to
19    an employee of an emergency services provider or law
20    enforcement agency under the First Responders Suicide
21    Prevention Act.
22        (qq) Information and records held by the Department of
23    Public Health and its authorized representatives collected
24    under the Reproductive Health Act.
25        (rr) Information that is exempt from disclosure under
26    the Cannabis Regulation and Tax Act.

 

 

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1        (ss) Data reported by an employer to the Department of
2    Human Rights pursuant to Section 2-108 of the Illinois
3    Human Rights Act.
4        (tt) Recordings made under the Children's Advocacy
5    Center Act, except to the extent authorized under that
6    Act.
7        (uu) Information that is exempt from disclosure under
8    Section 50 of the Sexual Assault Evidence Submission Act.
9        (vv) Information that is exempt from disclosure under
10    subsections (f) and (j) of Section 5-36 of the Illinois
11    Public Aid Code.
12        (ww) Information that is exempt from disclosure under
13    Section 16.8 of the State Treasurer Act.
14        (xx) Information that is exempt from disclosure or
15    information that shall not be made public under the
16    Illinois Insurance Code.
17        (yy) Information prohibited from being disclosed under
18    the Illinois Educational Labor Relations Act.
19        (zz) Information prohibited from being disclosed under
20    the Illinois Public Labor Relations Act.
21        (aaa) Information prohibited from being disclosed
22    under Section 1-167 of the Illinois Pension Code.
23        (bbb) Information that is prohibited from disclosure
24    by the Illinois Police Training Act and the Illinois State
25    Police Act.
26        (ccc) Records exempt from disclosure under Section

 

 

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1    2605-304 of the Illinois State Police Law of the Civil
2    Administrative Code of Illinois.
3        (ddd) Information prohibited from being disclosed
4    under Section 35 of the Address Confidentiality for
5    Victims of Domestic Violence, Sexual Assault, Human
6    Trafficking, or Stalking Act.
7        (eee) Information prohibited from being disclosed
8    under subsection (b) of Section 75 of the Domestic
9    Violence Fatality Review Act.
10        (fff) Images from cameras under the Expressway Camera
11    Act. This subsection (fff) is inoperative on and after
12    July 1, 2025.
13        (ggg) Information prohibited from disclosure under
14    paragraph (3) of subsection (a) of Section 14 of the Nurse
15    Agency Licensing Act.
16        (hhh) Information submitted to the Illinois State
17    Police in an affidavit or application for an assault
18    weapon endorsement, assault weapon attachment endorsement,
19    .50 caliber rifle endorsement, or .50 caliber cartridge
20    endorsement under the Firearm Owners Identification Card
21    Act.
22        (iii) Data exempt from disclosure under Section 50 of
23    the School Safety Drill Act.
24        (jjj) (hhh) Information exempt from disclosure under
25    Section 30 of the Insurance Data Security Law.
26        (kkk) (iii) Confidential business information

 

 

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1    prohibited from disclosure under Section 45 of the Paint
2    Stewardship Act.
3        (lll) (Reserved).
4        (mmm) (iii) Information prohibited from being
5    disclosed under subsection (e) of Section 1-129 of the
6    Illinois Power Agency Act.
7        (nnn) Materials received by the Department of Commerce
8    and Economic Opportunity that are confidential under the
9    Music and Musicians Tax Credit and Jobs Act.
10(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
11102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
128-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
13102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
146-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
15eff. 1-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23;
16revised 1-2-24.)
 
17    (Text of Section after amendment by P.A. 103-472)
18    Sec. 7.5. Statutory exemptions. To the extent provided for
19by the statutes referenced below, the following shall be
20exempt from inspection and copying:
21        (a) All information determined to be confidential
22    under Section 4002 of the Technology Advancement and
23    Development Act.
24        (b) Library circulation and order records identifying
25    library users with specific materials under the Library

 

 

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1    Records Confidentiality Act.
2        (c) Applications, related documents, and medical
3    records received by the Experimental Organ Transplantation
4    Procedures Board and any and all documents or other
5    records prepared by the Experimental Organ Transplantation
6    Procedures Board or its staff relating to applications it
7    has received.
8        (d) Information and records held by the Department of
9    Public Health and its authorized representatives relating
10    to known or suspected cases of sexually transmissible
11    disease or any information the disclosure of which is
12    restricted under the Illinois Sexually Transmissible
13    Disease Control Act.
14        (e) Information the disclosure of which is exempted
15    under Section 30 of the Radon Industry Licensing Act.
16        (f) Firm performance evaluations under Section 55 of
17    the Architectural, Engineering, and Land Surveying
18    Qualifications Based Selection Act.
19        (g) Information the disclosure of which is restricted
20    and exempted under Section 50 of the Illinois Prepaid
21    Tuition Act.
22        (h) Information the disclosure of which is exempted
23    under the State Officials and Employees Ethics Act, and
24    records of any lawfully created State or local inspector
25    general's office that would be exempt if created or
26    obtained by an Executive Inspector General's office under

 

 

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1    that Act.
2        (i) Information contained in a local emergency energy
3    plan submitted to a municipality in accordance with a
4    local emergency energy plan ordinance that is adopted
5    under Section 11-21.5-5 of the Illinois Municipal Code.
6        (j) Information and data concerning the distribution
7    of surcharge moneys collected and remitted by carriers
8    under the Emergency Telephone System Act.
9        (k) Law enforcement officer identification information
10    or driver identification information compiled by a law
11    enforcement agency or the Department of Transportation
12    under Section 11-212 of the Illinois Vehicle Code.
13        (l) Records and information provided to a residential
14    health care facility resident sexual assault and death
15    review team or the Executive Council under the Abuse
16    Prevention Review Team Act.
17        (m) Information provided to the predatory lending
18    database created pursuant to Article 3 of the Residential
19    Real Property Disclosure Act, except to the extent
20    authorized under that Article.
21        (n) Defense budgets and petitions for certification of
22    compensation and expenses for court appointed trial
23    counsel as provided under Sections 10 and 15 of the
24    Capital Crimes Litigation Act (repealed). This subsection
25    (n) shall apply until the conclusion of the trial of the
26    case, even if the prosecution chooses not to pursue the

 

 

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1    death penalty prior to trial or sentencing.
2        (o) Information that is prohibited from being
3    disclosed under Section 4 of the Illinois Health and
4    Hazardous Substances Registry Act.
5        (p) Security portions of system safety program plans,
6    investigation reports, surveys, schedules, lists, data, or
7    information compiled, collected, or prepared by or for the
8    Department of Transportation under Sections 2705-300 and
9    2705-616 of the Department of Transportation Law of the
10    Civil Administrative Code of Illinois, the Regional
11    Transportation Authority under Section 2.11 of the
12    Regional Transportation Authority Act, or the St. Clair
13    County Transit District under the Bi-State Transit Safety
14    Act (repealed).
15        (q) Information prohibited from being disclosed by the
16    Personnel Record Review Act.
17        (r) Information prohibited from being disclosed by the
18    Illinois School Student Records Act.
19        (s) Information the disclosure of which is restricted
20    under Section 5-108 of the Public Utilities Act.
21        (t) (Blank).
22        (u) Records and information provided to an independent
23    team of experts under the Developmental Disability and
24    Mental Health Safety Act (also known as Brian's Law).
25        (v) Names and information of people who have applied
26    for or received Firearm Owner's Identification Cards under

 

 

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1    the Firearm Owners Identification Card Act or applied for
2    or received a concealed carry license under the Firearm
3    Concealed Carry Act, unless otherwise authorized by the
4    Firearm Concealed Carry Act; and databases under the
5    Firearm Concealed Carry Act, records of the Concealed
6    Carry Licensing Review Board under the Firearm Concealed
7    Carry Act, and law enforcement agency objections under the
8    Firearm Concealed Carry Act.
9        (v-5) Records of the Firearm Owner's Identification
10    Card Review Board that are exempted from disclosure under
11    Section 10 of the Firearm Owners Identification Card Act.
12        (w) Personally identifiable information which is
13    exempted from disclosure under subsection (g) of Section
14    19.1 of the Toll Highway Act.
15        (x) Information which is exempted from disclosure
16    under Section 5-1014.3 of the Counties Code or Section
17    8-11-21 of the Illinois Municipal Code.
18        (y) Confidential information under the Adult
19    Protective Services Act and its predecessor enabling
20    statute, the Elder Abuse and Neglect Act, including
21    information about the identity and administrative finding
22    against any caregiver of a verified and substantiated
23    decision of abuse, neglect, or financial exploitation of
24    an eligible adult maintained in the Registry established
25    under Section 7.5 of the Adult Protective Services Act.
26        (z) Records and information provided to a fatality

 

 

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1    review team or the Illinois Fatality Review Team Advisory
2    Council under Section 15 of the Adult Protective Services
3    Act.
4        (aa) Information which is exempted from disclosure
5    under Section 2.37 of the Wildlife Code.
6        (bb) Information which is or was prohibited from
7    disclosure by the Juvenile Court Act of 1987.
8        (cc) Recordings made under the Law Enforcement
9    Officer-Worn Body Camera Act, except to the extent
10    authorized under that Act.
11        (dd) Information that is prohibited from being
12    disclosed under Section 45 of the Condominium and Common
13    Interest Community Ombudsperson Act.
14        (ee) Information that is exempted from disclosure
15    under Section 30.1 of the Pharmacy Practice Act.
16        (ff) Information that is exempted from disclosure
17    under the Revised Uniform Unclaimed Property Act.
18        (gg) Information that is prohibited from being
19    disclosed under Section 7-603.5 of the Illinois Vehicle
20    Code.
21        (hh) Records that are exempt from disclosure under
22    Section 1A-16.7 of the Election Code.
23        (ii) Information which is exempted from disclosure
24    under Section 2505-800 of the Department of Revenue Law of
25    the Civil Administrative Code of Illinois.
26        (jj) Information and reports that are required to be

 

 

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1    submitted to the Department of Labor by registering day
2    and temporary labor service agencies but are exempt from
3    disclosure under subsection (a-1) of Section 45 of the Day
4    and Temporary Labor Services Act.
5        (kk) Information prohibited from disclosure under the
6    Seizure and Forfeiture Reporting Act.
7        (ll) Information the disclosure of which is restricted
8    and exempted under Section 5-30.8 of the Illinois Public
9    Aid Code.
10        (mm) Records that are exempt from disclosure under
11    Section 4.2 of the Crime Victims Compensation Act.
12        (nn) Information that is exempt from disclosure under
13    Section 70 of the Higher Education Student Assistance Act.
14        (oo) Communications, notes, records, and reports
15    arising out of a peer support counseling session
16    prohibited from disclosure under the First Responders
17    Suicide Prevention Act.
18        (pp) Names and all identifying information relating to
19    an employee of an emergency services provider or law
20    enforcement agency under the First Responders Suicide
21    Prevention Act.
22        (qq) Information and records held by the Department of
23    Public Health and its authorized representatives collected
24    under the Reproductive Health Act.
25        (rr) Information that is exempt from disclosure under
26    the Cannabis Regulation and Tax Act.

 

 

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1        (ss) Data reported by an employer to the Department of
2    Human Rights pursuant to Section 2-108 of the Illinois
3    Human Rights Act.
4        (tt) Recordings made under the Children's Advocacy
5    Center Act, except to the extent authorized under that
6    Act.
7        (uu) Information that is exempt from disclosure under
8    Section 50 of the Sexual Assault Evidence Submission Act.
9        (vv) Information that is exempt from disclosure under
10    subsections (f) and (j) of Section 5-36 of the Illinois
11    Public Aid Code.
12        (ww) Information that is exempt from disclosure under
13    Section 16.8 of the State Treasurer Act.
14        (xx) Information that is exempt from disclosure or
15    information that shall not be made public under the
16    Illinois Insurance Code.
17        (yy) Information prohibited from being disclosed under
18    the Illinois Educational Labor Relations Act.
19        (zz) Information prohibited from being disclosed under
20    the Illinois Public Labor Relations Act.
21        (aaa) Information prohibited from being disclosed
22    under Section 1-167 of the Illinois Pension Code.
23        (bbb) Information that is prohibited from disclosure
24    by the Illinois Police Training Act and the Illinois State
25    Police Act.
26        (ccc) Records exempt from disclosure under Section

 

 

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1    2605-304 of the Illinois State Police Law of the Civil
2    Administrative Code of Illinois.
3        (ddd) Information prohibited from being disclosed
4    under Section 35 of the Address Confidentiality for
5    Victims of Domestic Violence, Sexual Assault, Human
6    Trafficking, or Stalking Act.
7        (eee) Information prohibited from being disclosed
8    under subsection (b) of Section 75 of the Domestic
9    Violence Fatality Review Act.
10        (fff) Images from cameras under the Expressway Camera
11    Act. This subsection (fff) is inoperative on and after
12    July 1, 2025.
13        (ggg) Information prohibited from disclosure under
14    paragraph (3) of subsection (a) of Section 14 of the Nurse
15    Agency Licensing Act.
16        (hhh) Information submitted to the Illinois State
17    Police in an affidavit or application for an assault
18    weapon endorsement, assault weapon attachment endorsement,
19    .50 caliber rifle endorsement, or .50 caliber cartridge
20    endorsement under the Firearm Owners Identification Card
21    Act.
22        (iii) Data exempt from disclosure under Section 50 of
23    the School Safety Drill Act.
24        (jjj) (hhh) Information exempt from disclosure under
25    Section 30 of the Insurance Data Security Law.
26        (kkk) (iii) Confidential business information

 

 

10300HB4951sam002- 223 -LRB103 38094 HLH 74177 a

1    prohibited from disclosure under Section 45 of the Paint
2    Stewardship Act.
3        (lll) (iii) Data exempt from disclosure under Section
4    2-3.196 of the School Code.
5        (mmm) (iii) Information prohibited from being
6    disclosed under subsection (e) of Section 1-129 of the
7    Illinois Power Agency Act.
8        (nnn) Materials received by the Department of Commerce
9    and Economic Opportunity that are confidential under the
10    Music and Musicians Tax Credit and Jobs Act.
11(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
12102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
138-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
14102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
156-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
16eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23;
17103-580, eff. 12-8-23; revised 1-2-24.)
 
18    Section 52-5. The Illinois Income Tax Act is amended by
19adding Section 241 as follows:
 
20    (35 ILCS 5/241 new)
21    Sec. 241. Music and Musicians Tax Credits and Jobs Act.
22Taxpayers who have been awarded a credit under the Music and
23Musicians Tax Credits and Jobs Act are entitled to a credit
24against the taxes imposed by subsections (a) and (b) of

 

 

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1Section 201 of this Act in an amount determined by the
2Department of Commerce and Economic Opportunity under that
3Act. The credit shall be claimed in the taxable year in which
4the tax credit award certificate is issued, and the
5certificate shall be attached to the return. If the taxpayer
6is a partnership or Subchapter S corporation, the credit shall
7be allowed to the partners or shareholders in accordance with
8the provisions of Section 251.
9    The credit may not reduce the taxpayer's liability to less
10than zero. If the amount of the credit exceeds the tax
11liability for the year, the excess may be carried forward and
12applied to the tax liability of the 5 taxable years following
13the excess credit year. The credit shall be applied to the
14earliest year for which there is a tax liability. If there are
15credits from more than one tax year that are available to
16offset a liability, the earlier credit shall be applied first.
 
17
ARTICLE 55.

 
18    Section 55-5. The Illinois Income Tax Act is amended by
19changing Section 216 as follows:
 
20    (35 ILCS 5/216)
21    Sec. 216. Credit for wages paid to returning citizens
22ex-felons.
23    (a) For each taxable year beginning on or after January 1,

 

 

10300HB4951sam002- 225 -LRB103 38094 HLH 74177 a

12007, each taxpayer is entitled to a credit against the tax
2imposed by subsections (a) and (b) of Section 201 of this Act
3in an amount equal to 5% of qualified wages paid by the
4taxpayer during the taxable year to one or more Illinois
5residents who are qualified returning citizens ex-offenders.
6For each taxable year beginning on or after January 1, 2025,
7each taxpayer is entitled to a credit against the tax imposed
8by subsections (a) and (b) of Section 201 of this Act in an
9amount equal to 15% of qualified wages paid by the taxpayer
10during the taxable year to one or more Illinois residents who
11are qualified returning citizens. The total credit allowed to
12a taxpayer with respect to each qualified returning citizen
13ex-offender may not exceed $1,500 for all taxable years ending
14on or before December 31, 2024. For taxable years ending on or
15after December 31, 2025, the total credit allowed to a
16taxpayer with respect to each qualified returning citizen may
17not exceed $7,500. For taxable years ending on or after
18December 31, 2025, the total amount in credit that may be
19awarded under this Section may not exceed $1,000,000 per
20taxable year. For taxable years ending before December 31,
212023, for partners, shareholders of Subchapter S corporations,
22and owners of limited liability companies, if the liability
23company is treated as a partnership for purposes of federal
24and State income taxation, there shall be allowed a credit
25under this Section to be determined in accordance with the
26determination of income and distributive share of income under

 

 

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1Sections 702 and 704 and Subchapter S of the Internal Revenue
2Code. For taxable years ending on or after December 31, 2023,
3partners and shareholders of subchapter S corporations are
4entitled to a credit under this Section as provided in Section
5251.
6    (b) For purposes of this Section, "qualified wages":
7        (1) includes only wages that are subject to federal
8    unemployment tax under Section 3306 of the Internal
9    Revenue Code, without regard to any dollar limitation
10    contained in that Section;
11        (2) does not include any amounts paid or incurred by
12    an employer for any period to any qualified returning
13    citizen ex-offender for whom the employer receives
14    federally funded payments for on-the-job training of that
15    qualified returning citizen ex-offender for that period;
16    and
17        (3) includes only wages attributable to service
18    rendered during the one-year period beginning with the day
19    the qualified returning citizen ex-offender begins work
20    for the employer.
21    If the taxpayer has received any payment from a program
22established under Section 482(e)(1) of the federal Social
23Security Act with respect to a qualified returning citizen
24ex-offender, then, for purposes of calculating the credit
25under this Section, the amount of the qualified wages paid to
26that qualified ex-offender must be reduced by the amount of

 

 

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1the payment.
2    (c) For purposes of this Section, "qualified returning
3citizen ex-offender" means any person who:
4        (1) has been convicted of a crime in this State or of
5    an offense in any other jurisdiction, not including any
6    offense or attempted offense that would subject a person
7    to registration under the Sex Offender Registration Act;
8        (2) was sentenced to a period of incarceration in an
9    Illinois adult correctional center; and
10        (3) was hired by the taxpayer within 3 years after
11    being released from an Illinois adult correctional center
12    if the credit is claimed for a taxable year beginning on or
13    before January 1, 2024, or was hired by the taxpayer
14    within 5 years after being released from an Illinois adult
15    correctional center if the credit is claimed for a taxable
16    year beginning on or after January 1, 2025.
17    (d) In no event shall a credit under this Section reduce
18the taxpayer's liability to less than zero. If the amount of
19the credit exceeds the tax liability for the year, the excess
20may be carried forward and applied to the tax liability of the
215 taxable years following the excess credit year. The tax
22credit shall be applied to the earliest year for which there is
23a tax liability. If there are credits for more than one year
24that are available to offset a liability, the earlier credit
25shall be applied first.
26    (e) This Section is exempt from the provisions of Section

 

 

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1250.
2(Source: P.A. 103-396, eff. 1-1-24.)
 
3
ARTICLE 60.

 
4    Section 60-5. The Illinois Income Tax Act is amended by
5changing Section 234 as follows:
 
6    (35 ILCS 5/234)
7    Sec. 234. Volunteer emergency workers.
8    (a) For taxable years beginning on or after January 1,
92023 and beginning prior to January 1, 2028, each individual
10who (i) serves as a volunteer emergency worker for at least 9
11months during the taxable year and (ii) does not receive
12compensation for his or her services as a volunteer emergency
13worker of more than $5,000 for the taxable year may apply to
14the Department for a credit against the taxes imposed by
15subsections (a) and (b) of Section 201. The amount of the
16credit shall be $500 per eligible individual. If a taxpayer
17described in this subsection (a) is a volunteer member of a
18county or municipal emergency services and disaster agency
19under the Illinois Emergency Management Agency Act, then the
20taxpayer must serve as a volunteer emergency worker with the
21county or municipal emergency services and disaster agency for
22at least 100 hours during the taxable year. The aggregate
23amount of all tax credits awarded by the Department under this

 

 

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1Section in any calendar year may not exceed $5,000,000.
2Credits shall be awarded on a first-come first-served basis.
3    (b) A credit under this Section may not reduce a
4taxpayer's liability to less than zero.
5    (c) By January 24 of each year, the Office of the State
6Fire Marshal shall provide the Department of Revenue an
7electronic file with the names of volunteer emergency workers,
8other than volunteer emergency workers who are volunteer
9members of a county or municipal emergency services and
10disaster agency under the Illinois Emergency Management Agency
11Act, who (i) volunteered for at least 9 months during the
12immediately preceding calendar year, (ii) did not receive
13compensation for their services as a volunteer emergency
14worker of more than $5,000 during the immediately preceding
15calendar year, and (iii) are registered with the Office of the
16State Fire Marshal as of January 12 of the current year as
17meeting the requirements of items (i) and (ii) for the
18immediately preceding calendar year. The chief of the fire
19department, fire protection district, or fire protection
20association shall be responsible for notifying the State Fire
21Marshal of the volunteer emergency workers who met the
22requirements of items (i) and (ii) during the immediately
23preceding calendar year by January 12 of the current year.
24Notification shall be required in the format required by the
25State Fire Marshal. The chief of the fire department, fire
26protection district, or fire protection association shall be

 

 

10300HB4951sam002- 230 -LRB103 38094 HLH 74177 a

1responsible for the verification and accuracy of their
2submission to the State Fire Marshal under this subsection.
3    By January 24, 2025, and by January 24 of each year
4thereafter, the Illinois Emergency Management Agency and
5Office of Homeland Security shall provide the Department of
6Revenue an electronic file with the names of volunteer
7emergency workers who (A) volunteered with a county or
8municipal emergency services and disaster agency pursuant to
9the Illinois Emergency Management Agency Act for at least 9
10months during the immediately preceding calendar year, (B) did
11not receive compensation for their services as a volunteer
12emergency worker of more than $5,000 during the immediately
13preceding calendar year, (C) volunteered with a county or
14municipal emergency services and disaster agency pursuant to
15the Illinois Emergency Management Agency Act for at least 100
16hours during the immediately preceding calendar year, and (D)
17are registered with the Illinois Emergency Management Agency
18and Office of Homeland Security as of January 12 of the current
19year as meeting the requirements of items (A), (B), and (C) for
20the immediately preceding calendar year. The coordinator of
21the emergency services and disaster agency shall be
22responsible for notifying the Illinois Emergency Management
23Agency and Office of Homeland Security of the volunteer
24emergency workers who met the requirements of items (A), (B),
25and (C) during the immediately preceding calendar year by
26January 12 of the current year. Notification shall be in the

 

 

10300HB4951sam002- 231 -LRB103 38094 HLH 74177 a

1format required by the Illinois Emergency Management Agency
2and Office of Homeland Security. The coordinator of the
3emergency services and disaster agency shall be responsible
4for the verification and accuracy of their submission to the
5Illinois Emergency Management Agency and Office of Homeland
6Security under this subsection.
7    (d) As used in this Section, "volunteer emergency worker"
8means a person who serves as a member, other than on a
9full-time career basis, of a fire department, fire protection
10district, or fire protection association that has a Fire
11Department Identification Number issued by the Office of the
12State Fire Marshal and who does not serve as a member on a
13full-time career basis for another fire department, fire
14protection district, fire protection association, or
15governmental entity. For taxable years beginning on or after
16January 1, 2024, "volunteer emergency worker" also means a
17person who is a volunteer member of a county or municipal
18emergency services and disaster agency pursuant to the
19Illinois Emergency Management Agency Act.
20    (e) The Department shall adopt rules to implement and
21administer this Section, including rules concerning
22applications for the tax credit.
23(Source: P.A. 103-9, eff. 6-7-23.)
 
24
ARTICLE 65.

 

 

 

10300HB4951sam002- 232 -LRB103 38094 HLH 74177 a

1    Section 65-5. The Hotel Operators' Occupation Tax Act is
2amended by changing Sections 2, 3, 4, 5, and 6 and by adding
3Sections 3-2 and 3-3 as follows:
 
4    (35 ILCS 145/2)  (from Ch. 120, par. 481b.32)
5    Sec. 2. Definitions. As used in this Act, unless the
6context otherwise requires:
7    (1) "Hotel" means any building or buildings in which the
8public may, for a consideration, obtain living quarters,
9sleeping or housekeeping accommodations. The term includes,
10but is not limited to, inns, motels, tourist homes or courts,
11lodging houses, rooming houses and apartment houses, retreat
12centers, conference centers, and hunting lodges. For the
13purposes of re-renters of hotel rooms only, "hotel" does not
14include a short-term rental.
15    (2) "Operator" means any person engaged in the business of
16renting, leasing, or letting rooms in operating a hotel.
17    (3) "Occupancy" means the use or possession, or the right
18to the use or possession, of any room or rooms in a hotel for
19any purpose, or the right to the use or possession of the
20furnishings or to the services and accommodations accompanying
21the use and possession of the room or rooms.
22    (4) "Room" or "rooms" means any living quarters, sleeping
23or housekeeping accommodations.
24    (5) "Permanent resident" means any person who occupied or
25has the right to occupy any room or rooms, regardless of

 

 

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1whether or not it is the same room or rooms, in a hotel for at
2least 30 consecutive days.
3    (6) "Rent" or "rental" means the consideration received
4for occupancy, valued in money, whether received in money or
5otherwise, including all receipts, cash, credits and property
6or services of any kind or nature. "Rent" or "rental" includes
7any fee, charge, or commission received from a guest by a
8re-renter of hotel rooms specifically in connection with the
9re-rental of hotel rooms, but does not include any fee,
10charge, or commission received from a short-term rental by a
11hosting platform.
12    (7) "Department" means the Department of Revenue.
13    (8) "Person" means any natural individual, firm,
14partnership, association, joint stock company, joint
15adventure, public or private corporation, limited liability
16company, or a receiver, executor, trustee, guardian or other
17representative appointed by order of any court.
18    (9) "Re-renter of hotel rooms" means a person who is not
19employed by the hotel operator but who, either directly or
20indirectly, through agreements or arrangements with third
21parties, collects or processes the payment of rent for a hotel
22room located in this State and (i) obtains the right or
23authority to grant control of, access to, or occupancy of a
24hotel room in this State to a guest of the hotel or (ii)
25facilitates the booking of a hotel room located in this State.
26A person who obtains those rights or authorities is not

 

 

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1considered a re-renter of a hotel room if the person operates
2under a shared hotel brand with the operator.
3    (10) "Hosting platform" or "platform" means a person who
4provides an online application, software, website, or system
5through which a short-term rental located in this State is
6advertised or held out to the public as available to rent for
7occupancy. For purposes of this definition, "short-term
8rental" means an owner-occupied, tenant-occupied, or
9non-owner-occupied dwelling, including, but not limited to, an
10apartment, house, cottage, or condominium, located in this
11State, where: (i) at least one room in the dwelling is rented
12to an occupant for a period of less than 30 consecutive days;
13and (ii) all accommodations are reserved in advance; provided,
14however, that a dwelling shall be considered a single room if
15rented as such.
16    (11) "Shared hotel brand" means an identifying trademark
17that a hotel operator is expressly licensed to operate under
18in accordance with the terms of a hotel franchise or
19management agreement
20(Source: P.A. 100-213, eff. 8-18-17.)
 
21    (35 ILCS 145/3)  (from Ch. 120, par. 481b.33)
22    Sec. 3. Rate; exemptions.
23    (a) A tax is imposed upon hotel operators persons engaged
24in the business of renting, leasing or letting rooms in a hotel
25at the rate of 5% of 94% of the gross rental receipts from

 

 

10300HB4951sam002- 235 -LRB103 38094 HLH 74177 a

1engaging in business as a hotel operator such renting, leasing
2or letting, excluding, however, from gross rental receipts,
3the proceeds of such renting, leasing or letting hotel rooms
4to permanent residents of a that hotel and proceeds from the
5tax imposed under subsection (c) of Section 13 of the
6Metropolitan Pier and Exposition Authority Act.
7    (b) There shall be imposed an additional tax upon hotel
8operators persons engaged in the business of renting, leasing
9or letting rooms in a hotel at the rate of 1% of 94% of the
10gross rental receipts received by the hotel operator from
11engaging in business as a hotel operator from such renting,
12leasing or letting, excluding, however, from gross rental
13receipts, the proceeds of such renting, leasing or letting to
14permanent residents of that hotel and proceeds from the tax
15imposed under subsection (c) of Section 13 of the Metropolitan
16Pier and Exposition Authority Act.
17    (b-5) Beginning on July 1, 2024, if the renting, leasing,
18or letting of a hotel room is done through a re-renter of hotel
19rooms, then, subject to the provisions of Sections 3-2 and
203-3, the re-renter is the hotel operator for the purposes of
21the taxes under subsections (a) and (b). If the re-renter is
22headquartered outside of this State and has no presence in
23this State other than its business as a re-renter, conducted
24remotely, then, subject to the provisions of Sections 3-2 and
253-3, such re-renter is the hotel operator for the purposes of
26the taxes under subsections (a) and (b) if it meets one of the

 

 

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1following thresholds:
2        (1) the cumulative gross receipts from rentals in
3    Illinois by the re-renter of hotel rooms are $100,000 or
4    more; or
5        (2) the re-renter of hotel rooms cumulatively enters
6    into 200 or more separate transactions for rentals in
7    Illinois.
8    A re-renter of hotel rooms who is headquartered outside of
9this State and has no presence in this State other than its
10business as a re-renter, conducted remotely, shall determine
11on a quarterly basis, ending on the last day of March, June,
12September, and December, whether he or she meets the threshold
13of either paragraph (1) or (2) of this subsection (b-5) for the
14preceding 12-month period. If such re-renter of hotel rooms
15meets the threshold of either paragraph (1) or (2) for a
1612-month period, he or she is subject to tax under this Act and
17is required to remit the tax imposed under this Act and file
18returns for the 12-month period beginning on the first day of
19the next month after he or she determines that he or she meets
20the threshold of paragraph (1) or (2). At the end of that
2112-month period, such re-renter of hotel rooms shall determine
22whether he or she continued to meet the threshold of either
23paragraph (1) or (2) during the preceding 12-month period. If
24he or she met the threshold in either paragraph (1) or (2) for
25the preceding 12-month period, he or she is a hotel operator in
26this State and is required to remit the tax imposed under this

 

 

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1Act and file returns for the subsequent 12-month period. If,
2at the end of a 12-month period during which such re-renter is
3required to remit the tax imposed under this Act, the
4re-renter determines that he or she did not meet the threshold
5in either paragraph (1) or (2) during the preceding 12-month
6period, he or she shall subsequently determine on a quarterly
7basis, ending on the last day of March, June, September, and
8December, whether he or she meets the threshold of either
9paragraph (1) or (2) for the preceding 12-month period.
10    (c) No funds received pursuant to this Act shall be used to
11advertise for or otherwise promote new competition in the
12hotel business.
13    (d) However, such tax is not imposed upon the privilege of
14engaging in any business in Interstate Commerce or otherwise,
15which business may not, under the Constitution and Statutes of
16the United States, be made the subject of taxation by this
17State. In addition, the tax is not imposed upon gross rental
18receipts for which the hotel operator is prohibited from
19obtaining reimbursement for the tax from the customer by
20reason of a federal treaty.
21    (d-5) On and after July 1, 2017, the tax imposed by this
22Act shall not apply to gross rental receipts received by an
23entity that is organized and operated exclusively for
24religious purposes and possesses an active Exemption
25Identification Number issued by the Department pursuant to the
26Retailers' Occupation Tax Act when acting as a hotel operator

 

 

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1renting, leasing, or letting rooms:
2        (1) in furtherance of the purposes for which it is
3    organized; or
4        (2) to entities that (i) are organized and operated
5    exclusively for religious purposes, (ii) possess an active
6    Exemption Identification Number issued by the Department
7    pursuant to the Retailers' Occupation Tax Act, and (iii)
8    rent the rooms in furtherance of the purposes for which
9    they are organized.
10    No gross rental receipts are exempt under paragraph (2) of
11this subsection (d-5) unless the hotel operator obtains the
12active Exemption Identification Number from the exclusively
13religious entity to whom it is renting and maintains that
14number in its books and records. Gross rental receipts from
15all rentals other than those described in items (1) or (2) of
16this subsection (d-5) are subject to the tax imposed by this
17Act unless otherwise exempt under this Act.
18    This subsection (d-5) is exempt from the sunset provisions
19of Section 3-5 of this Act.
20    (d-10) On and after July 1, 2023, the tax imposed by this
21Act shall not apply to gross rental receipts received from the
22renting, leasing, or letting of rooms to an entity that is
23organized and operated exclusively by an organization
24chartered by the United States Congress for the purpose of
25providing disaster relief and that possesses an active
26Exemption Identification Number issued by the Department

 

 

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1pursuant to the Retailers' Occupation Tax Act if the renting,
2leasing, or letting of the rooms is in furtherance of the
3purposes for which the exempt organization is organized. This
4subsection (d-10) is exempt from the sunset provisions of
5Section 3-5 of this Act.
6    (e) Persons subject to the tax imposed by this Act may
7reimburse themselves for their tax liability under this Act by
8separately stating such tax as an additional charge, which
9charge may be stated in combination, in a single amount, with
10any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the
11Illinois Municipal Code, and Section 25.05-10 of "An Act to
12revise the law in relation to counties".
13    (f) If any hotel operator collects an amount (however
14designated) which purports to reimburse such operator for
15hotel operators' occupation tax liability measured by receipts
16which are not subject to hotel operators' occupation tax, or
17if any hotel operator, in collecting an amount (however
18designated) which purports to reimburse such operator for
19hotel operators' occupation tax liability measured by receipts
20which are subject to tax under this Act, collects more from the
21guest or re-renter customer than the operators' hotel
22operators' occupation tax liability in the transaction is, the
23guest or re-renter, as applicable, customer shall have a legal
24right to claim a refund of such amount from such operator.
25However, if such amount is not refunded to the guest or
26re-renter, as applicable, customer for any reason, the hotel

 

 

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1operator is liable to pay such amount to the Department.
2(Source: P.A. 103-9, eff. 6-7-23.)
 
3    (35 ILCS 145/3-2 new)
4    Sec. 3-2. No resale exemption; tax incurred by re-renters
5of hotel rooms. A hotel operator who rents, leases, or lets
6rooms subject to tax under this Act to a re-renter of hotel
7rooms incurs the tax under this Act on the gross rental
8receipts it receives from that re-renter of hotel rooms and
9cannot claim any resale exemption. In such situations, the
10re-renter of hotel rooms incurs tax under this Act on its gross
11rental receipts as provided in Section 3 of this Act.
 
12    (35 ILCS 145/3-3 new)
13    Sec. 3-3. Re-renter of hotel rooms; credit for tax
14reimbursement. A re-renter of hotel rooms may take a credit
15against the tax it incurs on the rental of a hotel room under
16this Act for the amount it paid under subsection (e) of Section
173 of this Act to a hotel operator as reimbursement for the tax
18incurred under this Act for the rental of that room for the
19purposes of re-rental.
 
20    (35 ILCS 145/4)  (from Ch. 120, par. 481b.34)
21    Sec. 4. Books and records. Every operator shall keep
22separate books or records of his business as an operator so as
23to show the rents and occupancies taxable under this Act

 

 

10300HB4951sam002- 241 -LRB103 38094 HLH 74177 a

1separately from his transactions not taxable under this Act.
2If any operator fails to keep such separate books or records,
3he shall be liable to tax at the rate designated in Section 3
4hereof upon the entire proceeds from his business hotel. The
5Department may adopt rules that establish requirements,
6including record forms and formats, for records required to be
7kept and maintained by taxpayers. For purposes of this
8Section, "records" means all data maintained by the taxpayer,
9including data on paper, microfilm, microfiche or any type of
10machine-sensible data compilation.
11(Source: P.A. 88-480.)
 
12    (35 ILCS 145/5)  (from Ch. 120, par. 481b.35)
13    Sec. 5. Certificate of registration; retailers' occupation
14tax registration provisions apply. It shall be unlawful for
15any person to engage in the business as a hotel operator of
16renting, leasing or letting rooms in a hotel in this State
17without a certificate of registration from the Department.
18    All of the provisions of Sections 2a and 2b of the
19Retailers' Occupation Tax Act, in effect on the effective date
20of this Act, as subsequently amended, shall apply to persons
21in the business as hotel operators of renting, leasing or
22letting rooms in a hotel in this State, to the same extent as
23if such provisions were included herein.
24(Source: Laws 1961, p. 1728.)
 

 

 

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1    (35 ILCS 145/6)  (from Ch. 120, par. 481b.36)
2    Sec. 6. Returns; allocation of proceeds Filing of returns
3and distribution of revenue. Except as provided hereinafter in
4this Section, on or before the last day of each calendar month,
5every person engaged as a hotel operator in the business of
6renting, leasing or letting rooms in a hotel in this State
7during the preceding calendar month shall file a return with
8the Department, stating:
9        1. The name of the operator;
10        2. His residence address and the address of his
11    principal place of business and the address of the
12    principal place of business (if that is a different
13    address) from which he engages in the business as a hotel
14    operator of renting, leasing or letting rooms in a hotel
15    in this State (including, if required by the Department,
16    the address of each hotel from which rental receipts were
17    received);
18        3. Total amount of rental receipts received by him
19    during the preceding calendar month from engaging in
20    business as a hotel operator renting, leasing or letting
21    rooms during such preceding calendar month;
22        4. Total amount of rental receipts received by him
23    during the preceding calendar month from renting, leasing
24    or letting rooms to permanent residents during such
25    preceding calendar month;
26        5. Total amount of other exclusions from gross rental

 

 

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1    receipts allowed by this Act;
2        6. Gross rental receipts which were received by him
3    during the preceding calendar month and upon the basis of
4    which the tax is imposed;
5        7. The amount of tax due;
6        8. Credit for any reimbursement of tax paid by a
7    re-renter of hotel rooms to hotel operators for rentals
8    purchased for re-rental, as provided in Section 3-3 of
9    this Act;
10        9. 8. Such other reasonable information as the
11    Department may require.
12    If the operator's average monthly tax liability to the
13Department does not exceed $200, the Department may authorize
14his returns to be filed on a quarter annual basis, with the
15return for January, February and March of a given year being
16due by April 30 of such year; with the return for April, May
17and June of a given year being due by July 31 of such year;
18with the return for July, August and September of a given year
19being due by October 31 of such year, and with the return for
20October, November and December of a given year being due by
21January 31 of the following year.
22    If the operator's average monthly tax liability to the
23Department does not exceed $50, the Department may authorize
24his returns to be filed on an annual basis, with the return for
25a given year being due by January 31 of the following year.
26    Such quarter annual and annual returns, as to form and

 

 

10300HB4951sam002- 244 -LRB103 38094 HLH 74177 a

1substance, shall be subject to the same requirements as
2monthly returns.
3    Notwithstanding any other provision in this Act concerning
4the time within which an operator may file his return, in the
5case of any operator who ceases to engage in a kind of business
6which makes him responsible for filing returns under this Act,
7such operator shall file a final return under this Act with the
8Department not more than 1 month after discontinuing such
9business.
10    Where the same person has more than 1 business registered
11with the Department under separate registrations under this
12Act, such person shall not file each return that is due as a
13single return covering all such registered businesses, but
14shall file separate returns for each such registered business.
15    In his return, the operator shall determine the value of
16any consideration other than money received by him in
17connection with engaging in business as a hotel operator the
18renting, leasing or letting of rooms in the course of his
19business and he shall include such value in his return. Such
20determination shall be subject to review and revision by the
21Department in the manner hereinafter provided for the
22correction of returns.
23    Where the operator is a corporation, the return filed on
24behalf of such corporation shall be signed by the president,
25vice-president, secretary or treasurer or by the properly
26accredited agent of such corporation.

 

 

10300HB4951sam002- 245 -LRB103 38094 HLH 74177 a

1    The person filing the return herein provided for shall, at
2the time of filing such return, pay to the Department the
3amount of tax herein imposed. The operator filing the return
4under this Section shall, at the time of filing such return,
5pay to the Department the amount of tax imposed by this Act
6less a discount of 2.1% or $25 per calendar year, whichever is
7greater, which is allowed to reimburse the operator for the
8expenses incurred in keeping records, preparing and filing
9returns, remitting the tax and supplying data to the
10Department on request.
11    If any payment provided for in this Section exceeds the
12operator's liabilities under this Act, as shown on an original
13return, the Department may authorize the operator to credit
14such excess payment against liability subsequently to be
15remitted to the Department under this Act, in accordance with
16reasonable rules adopted by the Department. If the Department
17subsequently determines that all or any part of the credit
18taken was not actually due to the operator, the operator's
19discount shall be reduced by an amount equal to the difference
20between the discount as applied to the credit taken and that
21actually due, and that operator shall be liable for penalties
22and interest on such difference.
23    There shall be deposited into the Build Illinois Fund in
24the State Treasury for each State fiscal year 40% of the amount
25of total net revenue from the tax imposed by subsection (a) of
26Section 3. Of the remaining 60%: (i) $5,000,000 shall be

 

 

10300HB4951sam002- 246 -LRB103 38094 HLH 74177 a

1deposited into the Illinois Sports Facilities Fund and
2credited to the Subsidy Account each fiscal year by making
3monthly deposits in the amount of 1/8 of $5,000,000 plus
4cumulative deficiencies in such deposits for prior months, and
5(ii) an amount equal to the then applicable Advance Amount
6shall be deposited into the Illinois Sports Facilities Fund
7and credited to the Advance Account each fiscal year by making
8monthly deposits in the amount of 1/8 of the then applicable
9Advance Amount plus any cumulative deficiencies in such
10deposits for prior months. (The deposits of the then
11applicable Advance Amount during each fiscal year shall be
12treated as advances of funds to the Illinois Sports Facilities
13Authority for its corporate purposes to the extent paid to the
14Authority or its trustee and shall be repaid into the General
15Revenue Fund in the State Treasury by the State Treasurer on
16behalf of the Authority pursuant to Section 19 of the Illinois
17Sports Facilities Authority Act, as amended. If in any fiscal
18year the full amount of the then applicable Advance Amount is
19not repaid into the General Revenue Fund, then the deficiency
20shall be paid from the amount in the Local Government
21Distributive Fund that would otherwise be allocated to the
22City of Chicago under the State Revenue Sharing Act.)
23    For purposes of the foregoing paragraph, the term "Advance
24Amount" means, for fiscal year 2002, $22,179,000, and for
25subsequent fiscal years through fiscal year 2033, 105.615% of
26the Advance Amount for the immediately preceding fiscal year,

 

 

10300HB4951sam002- 247 -LRB103 38094 HLH 74177 a

1rounded up to the nearest $1,000.
2    Of the remaining 60% of the amount of total net revenue
3beginning on August 1, 2011 through June 30, 2023, from the tax
4imposed by subsection (a) of Section 3 after all required
5deposits into the Illinois Sports Facilities Fund, an amount
6equal to 8% of the net revenue realized from this Act during
7the preceding month shall be deposited as follows: 18% of such
8amount shall be deposited into the Chicago Travel Industry
9Promotion Fund for the purposes described in subsection (n) of
10Section 5 of the Metropolitan Pier and Exposition Authority
11Act and the remaining 82% of such amount shall be deposited
12into the Local Tourism Fund each month for purposes authorized
13by Section 605-705 of the Department of Commerce and Economic
14Opportunity Law. Beginning on August 1, 2011 and through June
1530, 2023, an amount equal to 4.5% of the net revenue realized
16from this Act during the preceding month shall be deposited as
17follows: 55% of such amount shall be deposited into the
18Chicago Travel Industry Promotion Fund for the purposes
19described in subsection (n) of Section 5 of the Metropolitan
20Pier and Exposition Authority Act and the remaining 45% of
21such amount deposited into the International Tourism Fund for
22the purposes authorized in Section 605-707 of the Department
23of Commerce and Economic Opportunity Law. "Net revenue
24realized" means the revenue collected by the State under this
25Act less the amount paid out as refunds to taxpayers for
26overpayment of liability under this Act.

 

 

10300HB4951sam002- 248 -LRB103 38094 HLH 74177 a

1    Beginning on July 1, 2023, of the remaining 60% of the
2amount of total net revenue realized from the tax imposed
3under subsection (a) of Section 3, after all required deposits
4into the Illinois Sports Facilities Fund:
5        (1) an amount equal to 8% of the net revenue realized
6    under this Act for the preceding month shall be deposited
7    as follows: 82% to the Local Tourism Fund and 18% to the
8    Chicago Travel Industry Promotion Fund; and
9        (2) an amount equal to 4.5% of the net revenue
10    realized under this Act for the preceding month shall be
11    deposited as follows: 55% to the Chicago Travel Industry
12    Promotion Fund and 45% to the International Tourism Fund.
13    After making all these deposits, any remaining net revenue
14realized from the tax imposed under subsection (a) of Section
153 shall be deposited into the Tourism Promotion Fund in the
16State Treasury. All moneys received by the Department from the
17additional tax imposed under subsection (b) of Section 3 shall
18be deposited into the Build Illinois Fund in the State
19Treasury.
20    The Department may, upon separate written notice to a
21taxpayer, require the taxpayer to prepare and file with the
22Department on a form prescribed by the Department within not
23less than 60 days after receipt of the notice an annual
24information return for the tax year specified in the notice.
25Such annual return to the Department shall include a statement
26of gross receipts as shown by the operator's last State income

 

 

10300HB4951sam002- 249 -LRB103 38094 HLH 74177 a

1tax return. If the total receipts of the business as reported
2in the State income tax return do not agree with the gross
3receipts reported to the Department for the same period, the
4operator shall attach to his annual information return a
5schedule showing a reconciliation of the 2 amounts and the
6reasons for the difference. The operator's annual information
7return to the Department shall also disclose payroll
8information of the operator's business during the year covered
9by such return and any additional reasonable information which
10the Department deems would be helpful in determining the
11accuracy of the monthly, quarterly or annual tax returns by
12such operator as hereinbefore provided for in this Section.
13    If the annual information return required by this Section
14is not filed when and as required the taxpayer shall be liable
15for a penalty in an amount determined in accordance with
16Section 3-4 of the Uniform Penalty and Interest Act until such
17return is filed as required, the penalty to be assessed and
18collected in the same manner as any other penalty provided for
19in this Act.
20    The chief executive officer, proprietor, owner or highest
21ranking manager shall sign the annual return to certify the
22accuracy of the information contained therein. Any person who
23willfully signs the annual return containing false or
24inaccurate information shall be guilty of perjury and punished
25accordingly. The annual return form prescribed by the
26Department shall include a warning that the person signing the

 

 

10300HB4951sam002- 250 -LRB103 38094 HLH 74177 a

1return may be liable for perjury.
2    The foregoing portion of this Section concerning the
3filing of an annual information return shall not apply to an
4operator who is not required to file an income tax return with
5the United States Government.
6(Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
 
7    Section 65-10. The Illinois Municipal Code is amended by
8changing Section 8-3-13 as follows:
 
9    (65 ILCS 5/8-3-13)  (from Ch. 24, par. 8-3-13)
10    Sec. 8-3-13. The corporate authorities of any municipality
11containing 500,000 or more inhabitants may impose a tax prior
12to July 1, 1969, upon all hotel operators persons engaged in
13the municipality in the business of renting, leasing or
14letting rooms in a hotel, as defined in the Hotel Operators'
15Occupation Tax Act, at a rate not to exceed 1% of the gross
16rental receipts from engaging in business as a hotel operator
17the renting, leasing or letting, excluding, however, from
18gross rental receipts, the proceeds of the renting, leasing or
19letting of hotel rooms to permanent residents of a that hotel
20and proceeds from the tax imposed under subsection (c) of
21Section 13 of the Metropolitan Pier and Exposition Authority
22Act.
23    The tax imposed by a municipality under this Section and
24all civil penalties that may be assessed as an incident

 

 

10300HB4951sam002- 251 -LRB103 38094 HLH 74177 a

1thereof shall be collected and enforced by the State
2Department of Revenue. The certificate of registration that is
3issued by the Department to a lessor under the Hotel
4Operators' Occupation Tax Act shall permit the registrant to
5engage in a business that is taxable under any ordinance or
6resolution enacted under this Section without registering
7separately with the Department under the ordinance or
8resolution or under this Section. The Department shall have
9full power to administer and enforce this Section; to collect
10all taxes and penalties due hereunder; to dispose of taxes and
11penalties so collected in the manner provided in this Section;
12and to determine all rights to credit memoranda arising on
13account of the erroneous payment of tax or penalty hereunder.
14In the administration of and compliance with this Section, the
15Department and persons who are subject to this Section shall
16have the same rights, remedies, privileges, immunities, powers
17and duties, and be subject to the same conditions,
18restrictions, limitations, penalties and definitions of terms,
19and employ the same modes of procedure, as are prescribed in
20the Hotel Operators' Occupation Tax Act and the Uniform
21Penalty and Interest Act, as fully as if the provisions
22contained in those Acts were set forth herein.
23    Whenever the Department determines that a refund should be
24made under this Section to a claimant instead of issuing a
25credit memorandum, the Department shall notify the State
26Comptroller, who shall cause the warrant to be drawn for the

 

 

10300HB4951sam002- 252 -LRB103 38094 HLH 74177 a

1amount specified, and to the person named, in the notification
2from the Department. The refund shall be paid by the State
3Treasurer out of the Illinois tourism tax fund.
4    Persons subject to any tax imposed under authority granted
5by this Section may reimburse themselves for their tax
6liability for that tax by separately stating the tax as an
7additional charge, which charge may be stated in combination,
8in a single amount, with State tax imposed under the Hotel
9Operators' Occupation Tax Act.
10    The Department shall forthwith pay over to the State
11Treasurer, ex-officio, as trustee, all taxes and penalties
12collected hereunder. On or before the 25th day of each
13calendar month, the Department shall prepare and certify to
14the Comptroller the disbursement of stated sums of money to
15named municipalities from which lessors have paid taxes or
16penalties hereunder to the Department during the second
17preceding calendar month. The amount to be paid to each
18municipality shall be the amount (not including credit
19memoranda) collected hereunder during the second preceding
20calendar month by the Department, and not including an amount
21equal to the amount of refunds made during the second
22preceding calendar month by the Department on behalf of the
23municipality, less 4% of the balance, which sum shall be
24retained by the State Treasurer to cover the costs incurred by
25the Department in administering and enforcing the provisions
26of this Section, as provided herein. The Department, at the

 

 

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1time of each monthly disbursement to the municipalities, shall
2prepare and certify to the Comptroller the amount so retained
3by the State Treasurer, which shall be paid into the General
4Revenue Fund of the State Treasury.
5    Within 10 days after receipt by the Comptroller of the
6disbursement certification to the municipalities and the
7General Revenue Fund provided for in this Section to be given
8to the Comptroller by the Department, the Comptroller shall
9cause the warrants to be drawn for the respective amounts in
10accordance with the directions contained in the certification.
11    Nothing in this Section shall be construed to authorize a
12municipality to impose a tax upon the privilege of engaging in
13any business that, under the Constitution of the United
14States, may not be made the subject of taxation by this State.
15    An ordinance or resolution imposing a tax hereunder or
16effecting a change in the rate thereof shall be effective on
17the first day of the calendar month next following the
18expiration of the publication period provided in Section 1-2-4
19in respect to municipalities governed by that Section.
20    The corporate authorities of any municipality that levies
21a tax authorized by this Section shall transmit to the
22Department of Revenue on or not later than 5 days after the
23effective date of the ordinance or resolution a certified copy
24of the ordinance or resolution imposing the tax; whereupon,
25the Department of Revenue shall proceed to administer and
26enforce this Section on behalf of the municipality as of the

 

 

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1effective date of the ordinance or resolution. Upon a change
2in rate of a tax levied hereunder, or upon the discontinuance
3of the tax, the corporate authorities of the municipality
4shall, on or not later than 5 days after the effective date of
5the ordinance or resolution discontinuing the tax or effecting
6a change in rate, transmit to the Department of Revenue a
7certified copy of the ordinance or resolution effecting the
8change or discontinuance. The amounts disbursed to any
9municipality under this Section shall be expended by the
10municipality solely to promote tourism, conventions and other
11special events within that municipality or otherwise to
12attract nonresidents to visit the municipality.
13    Any municipality receiving and disbursing money under this
14Section shall report on or before the first Monday in January
15of each year to the Advisory Committee of the Illinois Tourism
16Promotion Fund, created by Section 12 of the Illinois
17Promotion Act. The reports shall specify the purposes for
18which the disbursements were made and shall contain detailed
19amounts of all receipts and disbursements under this Section.
20    This Section may be cited as the Tourism, Conventions and
21Other Special Events Promotion Act of 1967.
22(Source: P.A. 87-205; 87-733; 87-895.)
 
23    Section 65-15. The Metropolitan Pier and Exposition
24Authority Act is amended by changing Section 13 as follows:
 

 

 

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1    (70 ILCS 210/13)  (from Ch. 85, par. 1233)
2    Sec. 13. (a) The Authority shall not have power to levy
3taxes for any purpose, except as provided in subsections (b),
4(c), (d), (e), and (f).
5    (b) By ordinance the Authority shall, as soon as
6practicable after July 1, 1992 (the effective date of Public
7Act 87-733), impose a Metropolitan Pier and Exposition
8Authority Retailers' Occupation Tax upon all persons engaged
9in the business of selling tangible personal property at
10retail within the territory described in this subsection at
11the rate of 1.0% of the gross receipts (i) from the sale of
12food, alcoholic beverages, and soft drinks sold for
13consumption on the premises where sold and (ii) from the sale
14of food, alcoholic beverages, and soft drinks sold for
15consumption off the premises where sold by a retailer whose
16principal source of gross receipts is from the sale of food,
17alcoholic beverages, and soft drinks prepared for immediate
18consumption.
19    The tax imposed under this subsection and all civil
20penalties that may be assessed as an incident to that tax shall
21be collected and enforced by the Illinois Department of
22Revenue. The Department shall have full power to administer
23and enforce this subsection, to collect all taxes and
24penalties so collected in the manner provided in this
25subsection, and to determine all rights to credit memoranda
26arising on account of the erroneous payment of tax or penalty

 

 

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1under this subsection. In the administration of and compliance
2with this subsection, the Department and persons who are
3subject to this subsection shall have the same rights,
4remedies, privileges, immunities, powers, and duties, shall be
5subject to the same conditions, restrictions, limitations,
6penalties, exclusions, exemptions, and definitions of terms,
7and shall employ the same modes of procedure applicable to
8this Retailers' Occupation Tax as are prescribed in Sections
91, 2 through 2-65 (in respect to all provisions of those
10Sections other than the State rate of taxes), 2c, 2h, 2i, 3
11(except as to the disposition of taxes and penalties
12collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a,
136b, 6c, 7, 8, 9, 10, 11, 12, 13, and, until January 1, 1994,
1413.5 of the Retailers' Occupation Tax Act, and, on and after
15January 1, 1994, all applicable provisions of the Uniform
16Penalty and Interest Act that are not inconsistent with this
17Act, as fully as if provisions contained in those Sections of
18the Retailers' Occupation Tax Act were set forth in this
19subsection.
20    Persons subject to any tax imposed under the authority
21granted in this subsection may reimburse themselves for their
22seller's tax liability under this subsection by separately
23stating that tax as an additional charge, which charge may be
24stated in combination, in a single amount, with State taxes
25that sellers are required to collect under the Use Tax Act,
26pursuant to bracket schedules as the Department may prescribe.

 

 

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1The retailer filing the return shall, at the time of filing the
2return, pay to the Department the amount of tax imposed under
3this subsection, less a discount of 1.75%, which is allowed to
4reimburse the retailer for the expenses incurred in keeping
5records, preparing and filing returns, remitting the tax, and
6supplying data to the Department on request.
7    Whenever the Department determines that a refund should be
8made under this subsection to a claimant instead of issuing a
9credit memorandum, the Department shall notify the State
10Comptroller, who shall cause a warrant to be drawn for the
11amount specified and to the person named in the notification
12from the Department. The refund shall be paid by the State
13Treasurer out of the Metropolitan Pier and Exposition
14Authority trust fund held by the State Treasurer as trustee
15for the Authority.
16    Nothing in this subsection authorizes the Authority to
17impose a tax upon the privilege of engaging in any business
18that under the Constitution of the United States may not be
19made the subject of taxation by this State.
20    The Department shall forthwith pay over to the State
21Treasurer, ex officio, as trustee for the Authority, all taxes
22and penalties collected under this subsection for deposit into
23a trust fund held outside of the State Treasury.
24    As soon as possible after the first day of each month,
25beginning January 1, 2011, upon certification of the
26Department of Revenue, the Comptroller shall order

 

 

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1transferred, and the Treasurer shall transfer, to the STAR
2Bonds Revenue Fund the local sales tax increment, as defined
3in the Innovation Development and Economy Act, collected under
4this subsection during the second preceding calendar month for
5sales within a STAR bond district.
6    After the monthly transfer to the STAR Bonds Revenue Fund,
7on or before the 25th day of each calendar month, the
8Department shall prepare and certify to the Comptroller the
9amounts to be paid under subsection (g) of this Section, which
10shall be the amounts, not including credit memoranda,
11collected under this subsection during the second preceding
12calendar month by the Department, less any amounts determined
13by the Department to be necessary for the payment of refunds,
14less 1.5% of such balance, which sum shall be deposited by the
15State Treasurer into the Tax Compliance and Administration
16Fund in the State Treasury from which it shall be appropriated
17to the Department to cover the costs of the Department in
18administering and enforcing the provisions of this subsection,
19and less any amounts that are transferred to the STAR Bonds
20Revenue Fund. Within 10 days after receipt by the Comptroller
21of the certification, the Comptroller shall cause the orders
22to be drawn for the remaining amounts, and the Treasurer shall
23administer those amounts as required in subsection (g).
24    A certificate of registration issued by the Illinois
25Department of Revenue to a retailer under the Retailers'
26Occupation Tax Act shall permit the registrant to engage in a

 

 

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1business that is taxed under the tax imposed under this
2subsection, and no additional registration shall be required
3under the ordinance imposing the tax or under this subsection.
4    A certified copy of any ordinance imposing or
5discontinuing any tax under this subsection or effecting a
6change in the rate of that tax shall be filed with the
7Department, whereupon the Department shall proceed to
8administer and enforce this subsection on behalf of the
9Authority as of the first day of the third calendar month
10following the date of filing.
11    The tax authorized to be levied under this subsection may
12be levied within all or any part of the following described
13portions of the metropolitan area:
14        (1) that portion of the City of Chicago located within
15    the following area: Beginning at the point of intersection
16    of the Cook County - DuPage County line and York Road, then
17    North along York Road to its intersection with Touhy
18    Avenue, then east along Touhy Avenue to its intersection
19    with the Northwest Tollway, then southeast along the
20    Northwest Tollway to its intersection with Lee Street,
21    then south along Lee Street to Higgins Road, then south
22    and east along Higgins Road to its intersection with
23    Mannheim Road, then south along Mannheim Road to its
24    intersection with Irving Park Road, then west along Irving
25    Park Road to its intersection with the Cook County -
26    DuPage County line, then north and west along the county

 

 

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1    line to the point of beginning; and
2        (2) that portion of the City of Chicago located within
3    the following area: Beginning at the intersection of West
4    55th Street with Central Avenue, then east along West 55th
5    Street to its intersection with South Cicero Avenue, then
6    south along South Cicero Avenue to its intersection with
7    West 63rd Street, then west along West 63rd Street to its
8    intersection with South Central Avenue, then north along
9    South Central Avenue to the point of beginning; and
10        (3) that portion of the City of Chicago located within
11    the following area: Beginning at the point 150 feet west
12    of the intersection of the west line of North Ashland
13    Avenue and the north line of West Diversey Avenue, then
14    north 150 feet, then east along a line 150 feet north of
15    the north line of West Diversey Avenue extended to the
16    shoreline of Lake Michigan, then following the shoreline
17    of Lake Michigan (including Navy Pier and all other
18    improvements fixed to land, docks, or piers) to the point
19    where the shoreline of Lake Michigan and the Adlai E.
20    Stevenson Expressway extended east to that shoreline
21    intersect, then west along the Adlai E. Stevenson
22    Expressway to a point 150 feet west of the west line of
23    South Ashland Avenue, then north along a line 150 feet
24    west of the west line of South and North Ashland Avenue to
25    the point of beginning.
26    The tax authorized to be levied under this subsection may

 

 

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1also be levied on food, alcoholic beverages, and soft drinks
2sold on boats and other watercraft departing from and
3returning to the shoreline of Lake Michigan (including Navy
4Pier and all other improvements fixed to land, docks, or
5piers) described in item (3).
6    (c) By ordinance the Authority shall, as soon as
7practicable after July 1, 1992 (the effective date of Public
8Act 87-733), impose an occupation tax upon all hotel operators
9persons engaged in the corporate limits of the City of Chicago
10in the business of renting, leasing, or letting rooms in a
11hotel, as defined in the Hotel Operators' Occupation Tax Act,
12at a rate of 2.5% of the gross rental receipts from engaging in
13business as a hotel operator the renting, leasing, or letting
14of hotel rooms within the City of Chicago, excluding, however,
15from gross rental receipts the proceeds of renting, leasing,
16or letting of hotel rooms to permanent residents of a hotel, as
17defined in that Act. Gross rental receipts shall not include
18charges that are added on account of the liability arising
19from any tax imposed by the State or any governmental agency on
20the occupation of renting, leasing, or letting rooms in a
21hotel.
22    The tax imposed by the Authority under this subsection and
23all civil penalties that may be assessed as an incident to that
24tax shall be collected and enforced by the Illinois Department
25of Revenue. The certificate of registration that is issued by
26the Department to a lessor under the Hotel Operators'

 

 

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1Occupation Tax Act shall permit that registrant to engage in a
2business that is taxable under any ordinance enacted under
3this subsection without registering separately with the
4Department under that ordinance or under this subsection. The
5Department shall have full power to administer and enforce
6this subsection, to collect all taxes and penalties due under
7this subsection, to dispose of taxes and penalties so
8collected in the manner provided in this subsection, and to
9determine all rights to credit memoranda arising on account of
10the erroneous payment of tax or penalty under this subsection.
11In the administration of and compliance with this subsection,
12the Department and persons who are subject to this subsection
13shall have the same rights, remedies, privileges, immunities,
14powers, and duties, shall be subject to the same conditions,
15restrictions, limitations, penalties, and definitions of
16terms, and shall employ the same modes of procedure as are
17prescribed in the Hotel Operators' Occupation Tax Act (except
18where that Act is inconsistent with this subsection), as fully
19as if the provisions contained in the Hotel Operators'
20Occupation Tax Act were set out in this subsection.
21    Whenever the Department determines that a refund should be
22made under this subsection to a claimant instead of issuing a
23credit memorandum, the Department shall notify the State
24Comptroller, who shall cause a warrant to be drawn for the
25amount specified and to the person named in the notification
26from the Department. The refund shall be paid by the State

 

 

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1Treasurer out of the Metropolitan Pier and Exposition
2Authority trust fund held by the State Treasurer as trustee
3for the Authority.
4    Persons subject to any tax imposed under the authority
5granted in this subsection may reimburse themselves for their
6tax liability for that tax by separately stating that tax as an
7additional charge, which charge may be stated in combination,
8in a single amount, with State taxes imposed under the Hotel
9Operators' Occupation Tax Act, the municipal tax imposed under
10Section 8-3-13 of the Illinois Municipal Code, and the tax
11imposed under Section 19 of the Illinois Sports Facilities
12Authority Act.
13    The person filing the return shall, at the time of filing
14the return, pay to the Department the amount of tax, less a
15discount of 2.1% or $25 per calendar year, whichever is
16greater, which is allowed to reimburse the operator for the
17expenses incurred in keeping records, preparing and filing
18returns, remitting the tax, and supplying data to the
19Department on request.
20    Except as otherwise provided in this paragraph, the
21Department shall forthwith pay over to the State Treasurer, ex
22officio, as trustee for the Authority, all taxes and penalties
23collected under this subsection for deposit into a trust fund
24held outside the State Treasury. On or before the 25th day of
25each calendar month, the Department shall certify to the
26Comptroller the amounts to be paid under subsection (g) of

 

 

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1this Section, which shall be the amounts (not including credit
2memoranda) collected under this subsection during the second
3preceding calendar month by the Department, less any amounts
4determined by the Department to be necessary for payment of
5refunds, less 1.5% of the remainder, which the Department
6shall transfer into the Tax Compliance and Administration
7Fund. The Department, at the time of each monthly disbursement
8to the Authority, shall prepare and certify to the State
9Comptroller the amount to be transferred into the Tax
10Compliance and Administration Fund under this subsection.
11Within 10 days after receipt by the Comptroller of the
12Department's certification, the Comptroller shall cause the
13orders to be drawn for such amounts, and the Treasurer shall
14administer the amounts distributed to the Authority as
15required in subsection (g).
16    A certified copy of any ordinance imposing or
17discontinuing a tax under this subsection or effecting a
18change in the rate of that tax shall be filed with the Illinois
19Department of Revenue, whereupon the Department shall proceed
20to administer and enforce this subsection on behalf of the
21Authority as of the first day of the third calendar month
22following the date of filing.
23    (d) By ordinance the Authority shall, as soon as
24practicable after July 1, 1992 (the effective date of Public
25Act 87-733), impose a tax upon all persons engaged in the
26business of renting automobiles in the metropolitan area at

 

 

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1the rate of 6% of the gross receipts from that business, except
2that no tax shall be imposed on the business of renting
3automobiles for use as taxicabs or in livery service. The tax
4imposed under this subsection and all civil penalties that may
5be assessed as an incident to that tax shall be collected and
6enforced by the Illinois Department of Revenue. The
7certificate of registration issued by the Department to a
8retailer under the Retailers' Occupation Tax Act or under the
9Automobile Renting Occupation and Use Tax Act shall permit
10that person to engage in a business that is taxable under any
11ordinance enacted under this subsection without registering
12separately with the Department under that ordinance or under
13this subsection. The Department shall have full power to
14administer and enforce this subsection, to collect all taxes
15and penalties due under this subsection, to dispose of taxes
16and penalties so collected in the manner provided in this
17subsection, and to determine all rights to credit memoranda
18arising on account of the erroneous payment of tax or penalty
19under this subsection. In the administration of and compliance
20with this subsection, the Department and persons who are
21subject to this subsection shall have the same rights,
22remedies, privileges, immunities, powers, and duties, be
23subject to the same conditions, restrictions, limitations,
24penalties, and definitions of terms, and employ the same modes
25of procedure as are prescribed in Sections 2 and 3 (in respect
26to all provisions of those Sections other than the State rate

 

 

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1of tax; and in respect to the provisions of the Retailers'
2Occupation Tax Act referred to in those Sections, except as to
3the disposition of taxes and penalties collected, except for
4the provision allowing retailers a deduction from the tax to
5cover certain costs, and except that credit memoranda issued
6under this subsection may not be used to discharge any State
7tax liability) of the Automobile Renting Occupation and Use
8Tax Act, as fully as if provisions contained in those Sections
9of that Act were set forth in this subsection.
10    Persons subject to any tax imposed under the authority
11granted in this subsection may reimburse themselves for their
12tax liability under this subsection by separately stating that
13tax as an additional charge, which charge may be stated in
14combination, in a single amount, with State tax that sellers
15are required to collect under the Automobile Renting
16Occupation and Use Tax Act, pursuant to bracket schedules as
17the Department may prescribe.
18    Whenever the Department determines that a refund should be
19made under this subsection to a claimant instead of issuing a
20credit memorandum, the Department shall notify the State
21Comptroller, who shall cause a warrant to be drawn for the
22amount specified and to the person named in the notification
23from the Department. The refund shall be paid by the State
24Treasurer out of the Metropolitan Pier and Exposition
25Authority trust fund held by the State Treasurer as trustee
26for the Authority.

 

 

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1    Except as otherwise provided in this paragraph, the
2Department shall forthwith pay over to the State Treasurer, ex
3officio, as trustee, all taxes and penalties collected under
4this subsection for deposit into a trust fund held outside the
5State Treasury. On or before the 25th day of each calendar
6month, the Department shall certify to the Comptroller the
7amounts to be paid under subsection (g) of this Section (not
8including credit memoranda) collected under this subsection
9during the second preceding calendar month by the Department,
10less any amount determined by the Department to be necessary
11for payment of refunds, less 1.5% of the remainder, which the
12Department shall transfer into the Tax Compliance and
13Administration Fund. The Department, at the time of each
14monthly disbursement to the Authority, shall prepare and
15certify to the State Comptroller the amount to be transferred
16into the Tax Compliance and Administration Fund under this
17subsection. Within 10 days after receipt by the Comptroller of
18the Department's certification, the Comptroller shall cause
19the orders to be drawn for such amounts, and the Treasurer
20shall administer the amounts distributed to the Authority as
21required in subsection (g).
22    Nothing in this subsection authorizes the Authority to
23impose a tax upon the privilege of engaging in any business
24that under the Constitution of the United States may not be
25made the subject of taxation by this State.
26    A certified copy of any ordinance imposing or

 

 

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1discontinuing a tax under this subsection or effecting a
2change in the rate of that tax shall be filed with the Illinois
3Department of Revenue, whereupon the Department shall proceed
4to administer and enforce this subsection on behalf of the
5Authority as of the first day of the third calendar month
6following the date of filing.
7    (e) By ordinance the Authority shall, as soon as
8practicable after July 1, 1992 (the effective date of Public
9Act 87-733), impose a tax upon the privilege of using in the
10metropolitan area an automobile that is rented from a rentor
11outside Illinois and is titled or registered with an agency of
12this State's government at a rate of 6% of the rental price of
13that automobile, except that no tax shall be imposed on the
14privilege of using automobiles rented for use as taxicabs or
15in livery service. The tax shall be collected from persons
16whose Illinois address for titling or registration purposes is
17given as being in the metropolitan area. The tax shall be
18collected by the Department of Revenue for the Authority. The
19tax must be paid to the State or an exemption determination
20must be obtained from the Department of Revenue before the
21title or certificate of registration for the property may be
22issued. The tax or proof of exemption may be transmitted to the
23Department by way of the State agency with which or State
24officer with whom the tangible personal property must be
25titled or registered if the Department and that agency or
26State officer determine that this procedure will expedite the

 

 

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1processing of applications for title or registration.
2    The Department shall have full power to administer and
3enforce this subsection, to collect all taxes, penalties, and
4interest due under this subsection, to dispose of taxes,
5penalties, and interest so collected in the manner provided in
6this subsection, and to determine all rights to credit
7memoranda or refunds arising on account of the erroneous
8payment of tax, penalty, or interest under this subsection. In
9the administration of and compliance with this subsection, the
10Department and persons who are subject to this subsection
11shall have the same rights, remedies, privileges, immunities,
12powers, and duties, be subject to the same conditions,
13restrictions, limitations, penalties, and definitions of
14terms, and employ the same modes of procedure as are
15prescribed in Sections 2 and 4 (except provisions pertaining
16to the State rate of tax; and in respect to the provisions of
17the Use Tax Act referred to in that Section, except provisions
18concerning collection or refunding of the tax by retailers,
19except the provisions of Section 19 pertaining to claims by
20retailers, except the last paragraph concerning refunds, and
21except that credit memoranda issued under this subsection may
22not be used to discharge any State tax liability) of the
23Automobile Renting Occupation and Use Tax Act, as fully as if
24provisions contained in those Sections of that Act were set
25forth in this subsection.
26    Whenever the Department determines that a refund should be

 

 

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1made under this subsection to a claimant instead of issuing a
2credit memorandum, the Department shall notify the State
3Comptroller, who shall cause a warrant to be drawn for the
4amount specified and to the person named in the notification
5from the Department. The refund shall be paid by the State
6Treasurer out of the Metropolitan Pier and Exposition
7Authority trust fund held by the State Treasurer as trustee
8for the Authority.
9    Except as otherwise provided in this paragraph, the
10Department shall forthwith pay over to the State Treasurer, ex
11officio, as trustee, all taxes, penalties, and interest
12collected under this subsection for deposit into a trust fund
13held outside the State Treasury. On or before the 25th day of
14each calendar month, the Department shall certify to the State
15Comptroller the amounts to be paid under subsection (g) of
16this Section, which shall be the amounts (not including credit
17memoranda) collected under this subsection during the second
18preceding calendar month by the Department, less any amounts
19determined by the Department to be necessary for payment of
20refunds, less 1.5% of the remainder, which the Department
21shall transfer into the Tax Compliance and Administration
22Fund. The Department, at the time of each monthly disbursement
23to the Authority, shall prepare and certify to the State
24Comptroller the amount to be transferred into the Tax
25Compliance and Administration Fund under this subsection.
26Within 10 days after receipt by the State Comptroller of the

 

 

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1Department's certification, the Comptroller shall cause the
2orders to be drawn for such amounts, and the Treasurer shall
3administer the amounts distributed to the Authority as
4required in subsection (g).
5    A certified copy of any ordinance imposing or
6discontinuing a tax or effecting a change in the rate of that
7tax shall be filed with the Illinois Department of Revenue,
8whereupon the Department shall proceed to administer and
9enforce this subsection on behalf of the Authority as of the
10first day of the third calendar month following the date of
11filing.
12    (f) By ordinance the Authority shall, as soon as
13practicable after July 1, 1992 (the effective date of Public
14Act 87-733), impose an occupation tax on all persons, other
15than a governmental agency, engaged in the business of
16providing ground transportation for hire to passengers in the
17metropolitan area at a rate of (i) $4 per taxi or livery
18vehicle departure with passengers for hire from commercial
19service airports in the metropolitan area, (ii) for each
20departure with passengers for hire from a commercial service
21airport in the metropolitan area in a bus or van operated by a
22person other than a person described in item (iii): $18 per bus
23or van with a capacity of 1-12 passengers, $36 per bus or van
24with a capacity of 13-24 passengers, and $54 per bus or van
25with a capacity of over 24 passengers, and (iii) for each
26departure with passengers for hire from a commercial service

 

 

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1airport in the metropolitan area in a bus or van operated by a
2person regulated by the Interstate Commerce Commission or
3Illinois Commerce Commission, operating scheduled service from
4the airport, and charging fares on a per passenger basis: $2
5per passenger for hire in each bus or van. The term "commercial
6service airports" means those airports receiving scheduled
7passenger service and enplaning more than 100,000 passengers
8per year.
9    In the ordinance imposing the tax, the Authority may
10provide for the administration and enforcement of the tax and
11the collection of the tax from persons subject to the tax as
12the Authority determines to be necessary or practicable for
13the effective administration of the tax. The Authority may
14enter into agreements as it deems appropriate with any
15governmental agency providing for that agency to act as the
16Authority's agent to collect the tax.
17    In the ordinance imposing the tax, the Authority may
18designate a method or methods for persons subject to the tax to
19reimburse themselves for the tax liability arising under the
20ordinance (i) by separately stating the full amount of the tax
21liability as an additional charge to passengers departing the
22airports, (ii) by separately stating one-half of the tax
23liability as an additional charge to both passengers departing
24from and to passengers arriving at the airports, or (iii) by
25some other method determined by the Authority.
26    All taxes, penalties, and interest collected under any

 

 

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1ordinance adopted under this subsection, less any amounts
2determined to be necessary for the payment of refunds and less
3the taxes, penalties, and interest attributable to any
4increase in the rate of tax authorized by Public Act 96-898,
5shall be paid forthwith to the State Treasurer, ex officio,
6for deposit into a trust fund held outside the State Treasury
7and shall be administered by the State Treasurer as provided
8in subsection (g) of this Section. All taxes, penalties, and
9interest attributable to any increase in the rate of tax
10authorized by Public Act 96-898 shall be paid by the State
11Treasurer as follows: 25% for deposit into the Convention
12Center Support Fund, to be used by the Village of Rosemont for
13the repair, maintenance, and improvement of the Donald E.
14Stephens Convention Center and for debt service on debt
15instruments issued for those purposes by the village and 75%
16to the Authority to be used for grants to an organization
17meeting the qualifications set out in Section 5.6 of this Act,
18provided the Metropolitan Pier and Exposition Authority has
19entered into a marketing agreement with such an organization.
20    (g) Amounts deposited from the proceeds of taxes imposed
21by the Authority under subsections (b), (c), (d), (e), and (f)
22of this Section and amounts deposited under Section 19 of the
23Illinois Sports Facilities Authority Act shall be held in a
24trust fund outside the State Treasury and, other than the
25amounts transferred into the Tax Compliance and Administration
26Fund under subsections (b), (c), (d), and (e), shall be

 

 

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1administered by the Treasurer as follows:
2        (1) An amount necessary for the payment of refunds
3    with respect to those taxes shall be retained in the trust
4    fund and used for those payments.
5        (2) On July 20 and on the 20th of each month
6    thereafter, provided that the amount requested in the
7    annual certificate of the Chairman of the Authority filed
8    under Section 8.25f of the State Finance Act has been
9    appropriated for payment to the Authority, 1/8 of the
10    local tax transfer amount, together with any cumulative
11    deficiencies in the amounts transferred into the McCormick
12    Place Expansion Project Fund under this subparagraph (2)
13    during the fiscal year for which the certificate has been
14    filed, shall be transferred from the trust fund into the
15    McCormick Place Expansion Project Fund in the State
16    treasury until 100% of the local tax transfer amount has
17    been so transferred. "Local tax transfer amount" shall
18    mean the amount requested in the annual certificate, minus
19    the reduction amount. "Reduction amount" shall mean $41.7
20    million in fiscal year 2011, $36.7 million in fiscal year
21    2012, $36.7 million in fiscal year 2013, $36.7 million in
22    fiscal year 2014, and $31.7 million in each fiscal year
23    thereafter until 2035, provided that the reduction amount
24    shall be reduced by (i) the amount certified by the
25    Authority to the State Comptroller and State Treasurer
26    under Section 8.25 of the State Finance Act, as amended,

 

 

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1    with respect to that fiscal year and (ii) in any fiscal
2    year in which the amounts deposited in the trust fund
3    under this Section exceed $343.3 million, exclusive of
4    amounts set aside for refunds and for the reserve account,
5    one dollar for each dollar of the deposits in the trust
6    fund above $343.3 million with respect to that year,
7    exclusive of amounts set aside for refunds and for the
8    reserve account.
9        (3) On July 20, 2010, the Comptroller shall certify to
10    the Governor, the Treasurer, and the Chairman of the
11    Authority the 2010 deficiency amount, which means the
12    cumulative amount of transfers that were due from the
13    trust fund to the McCormick Place Expansion Project Fund
14    in fiscal years 2008, 2009, and 2010 under Section 13(g)
15    of this Act, as it existed prior to May 27, 2010 (the
16    effective date of Public Act 96-898), but not made. On
17    July 20, 2011 and on July 20 of each year through July 20,
18    2014, the Treasurer shall calculate for the previous
19    fiscal year the surplus revenues in the trust fund and pay
20    that amount to the Authority. On July 20, 2015 and on July
21    20 of each year thereafter to and including July 20, 2017,
22    as long as bonds and notes issued under Section 13.2 or
23    bonds and notes issued to refund those bonds and notes are
24    outstanding, the Treasurer shall calculate for the
25    previous fiscal year the surplus revenues in the trust
26    fund and pay one-half of that amount to the State

 

 

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1    Treasurer for deposit into the General Revenue Fund until
2    the 2010 deficiency amount has been paid and shall pay the
3    balance of the surplus revenues to the Authority. On July
4    20, 2018 and on July 20 of each year thereafter, the
5    Treasurer shall calculate for the previous fiscal year the
6    surplus revenues in the trust fund and pay all of such
7    surplus revenues to the State Treasurer for deposit into
8    the General Revenue Fund until the 2010 deficiency amount
9    has been paid. After the 2010 deficiency amount has been
10    paid, the Treasurer shall pay the balance of the surplus
11    revenues to the Authority. "Surplus revenues" means the
12    amounts remaining in the trust fund on June 30 of the
13    previous fiscal year (A) after the State Treasurer has set
14    aside in the trust fund (i) amounts retained for refunds
15    under subparagraph (1) and (ii) any amounts necessary to
16    meet the reserve account amount and (B) after the State
17    Treasurer has transferred from the trust fund to the
18    General Revenue Fund 100% of any post-2010 deficiency
19    amount. "Reserve account amount" means $15 million in
20    fiscal year 2011 and $30 million in each fiscal year
21    thereafter. The reserve account amount shall be set aside
22    in the trust fund and used as a reserve to be transferred
23    to the McCormick Place Expansion Project Fund in the event
24    the proceeds of taxes imposed under this Section 13 are
25    not sufficient to fund the transfer required in
26    subparagraph (2). "Post-2010 deficiency amount" means any

 

 

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1    deficiency in transfers from the trust fund to the
2    McCormick Place Expansion Project Fund with respect to
3    fiscal years 2011 and thereafter. It is the intention of
4    this subparagraph (3) that no surplus revenues shall be
5    paid to the Authority with respect to any year in which a
6    post-2010 deficiency amount has not been satisfied by the
7    Authority.
8    Moneys received by the Authority as surplus revenues may
9be used (i) for the purposes of paying debt service on the
10bonds and notes issued by the Authority, including early
11redemption of those bonds or notes, (ii) for the purposes of
12repair, replacement, and improvement of the grounds,
13buildings, and facilities of the Authority, and (iii) for the
14corporate purposes of the Authority in fiscal years 2011
15through 2015 in an amount not to exceed $20,000,000 annually
16or $80,000,000 total, which amount shall be reduced $0.75 for
17each dollar of the receipts of the Authority in that year from
18any contract entered into with respect to naming rights at
19McCormick Place under Section 5(m) of this Act. When bonds and
20notes issued under Section 13.2, or bonds or notes issued to
21refund those bonds and notes, are no longer outstanding, the
22balance in the trust fund shall be paid to the Authority.
23    (h) The ordinances imposing the taxes authorized by this
24Section shall be repealed when bonds and notes issued under
25Section 13.2 or bonds and notes issued to refund those bonds
26and notes are no longer outstanding.

 

 

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1(Source: P.A. 100-23, Article 5, Section 5-35, eff. 7-6-17;
2100-23, Article 35, Section 35-25, eff. 7-6-17; 100-587, eff.
36-4-18; 100-863, eff. 8-14-18; 101-636, eff. 6-10-20.)
 
4    Section 65-20. The Illinois Sports Facilities Authority
5Act is amended by changing Section 19 as follows:
 
6    (70 ILCS 3205/19)  (from Ch. 85, par. 6019)
7    Sec. 19. Tax. The Authority may impose an occupation tax
8upon all hotel operators persons engaged in the City of
9Chicago in the business of renting, leasing or letting rooms
10in a hotel, as defined in The Hotel Operators' Occupation Tax
11Act, at a rate not to exceed 2% of the gross rental receipts
12from engaging in business as a hotel operator the renting,
13leasing or letting of hotel rooms located within the City of
14Chicago, excluding, however, from gross rental receipts, the
15proceeds of such renting, leasing or letting of hotel rooms to
16permanent residents of a that hotel and proceeds from the tax
17imposed under subsection (c) of Section 13 of the Metropolitan
18Pier and Exposition Authority Act.
19    The tax imposed by the Authority pursuant to this Section
20and all civil penalties that may be assessed as an incident
21thereof shall be collected and enforced by the State
22Department of Revenue. The certificate of registration which
23is issued by the Department to a lessor under The Hotel
24Operators' Occupation Tax Act shall permit such registrant to

 

 

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1engage in a business which is taxable under any ordinance or
2resolution enacted pursuant to this Section without
3registering separately with the Department under such
4ordinance or resolution or under this Section. The Department
5shall have full power to administer and enforce this Section;
6to collect all taxes and penalties due hereunder; to dispose
7of taxes and penalties so collected in the manner provided in
8this Section, and to determine all rights to credit memoranda,
9arising on account of the erroneous payment of tax or penalty
10hereunder. In the administration of, and compliance with, this
11Section, the Department and persons who are subject to this
12Section shall have the same rights, remedies, privileges,
13immunities, powers and duties, and be subject to the same
14conditions, restrictions, limitations, penalties and
15definitions of terms, and employ the same modes of procedure,
16as are prescribed in The Hotel Operators' Occupation Tax Act
17(except where that Act is inconsistent herewith), as the same
18is now or may hereafter be amended, as fully as if the
19provisions contained in The Hotel Operators' Occupation Tax
20Act were set forth herein.
21    Whenever the Department determines that a refund should be
22made under this Section to a claimant instead of issuing a
23credit memorandum, the Department shall notify the State
24Comptroller, who shall cause the warrant to be drawn for the
25amount specified, and to the person named, in such
26notification from the Department. Such refund shall be paid by

 

 

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1the State Treasurer out of the amounts held by the State
2Treasurer as trustee for the Authority.
3    Persons subject to any tax imposed pursuant to authority
4granted by this Section may reimburse themselves for their tax
5liability for such tax by separately stating such tax as an
6additional charge, which charge may be stated in combination,
7in a single amount, with State tax imposed under The Hotel
8Operators' Occupation Tax Act, the municipal tax imposed under
9Section 8-3-13 of the Illinois Municipal Code, and the tax
10imposed under Section 13 of the Metropolitan Pier and
11Exposition Authority Act.
12    The Department shall forthwith pay over to the State
13Treasurer, ex-officio, as trustee for the Authority, all taxes
14and penalties collected hereunder for deposit in a trust fund
15outside the State Treasury. On or before the 25th day of each
16calendar month, the Department shall certify to the
17Comptroller the amount to be paid to or on behalf of the
18Authority from amounts collected hereunder by the Department,
19and deposited into such trust fund during the second preceding
20calendar month. The amount to be paid to or on behalf of the
21Authority shall be the amount (not including credit memoranda)
22collected hereunder during such second preceding calendar
23month by the Department, less an amount equal to the amount of
24refunds authorized during such second preceding calendar month
25by the Department on behalf of the Authority, and less 4% of
26such balance, which sum shall be retained by the State

 

 

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1Treasurer to cover the costs incurred by the Department in
2administering and enforcing the provisions of this Section, as
3provided herein. Each such monthly certification by the
4Department shall also certify to the Comptroller the amount to
5be so retained by the State Treasurer for payment into the
6General Revenue Fund of the State Treasury.
7    Each monthly certification by the Department shall
8certify, of the amount paid to or on behalf of the Authority,
9(i) the portion to be paid to the Authority, (ii) the portion
10to be paid into the General Revenue Fund of the State Treasury
11on behalf of the Authority as repayment of amounts advanced to
12the Authority pursuant to appropriation from the Illinois
13Sports Facilities Fund.
14    With respect to each State fiscal year, of the total
15amount to be paid to or on behalf of the Authority, the
16Department shall certify that payments shall first be made
17directly to the Authority in an amount equal to any difference
18between the annual amount certified by the Chairman of the
19Authority pursuant to Section 8.25-4 of the State Finance Act
20and the amount appropriated to the Authority from the Illinois
21Sports Facilities Fund. Next, the Department shall certify
22that payment shall be made into the General Revenue Fund of the
23State Treasury in an amount equal to the difference between
24(i) the lesser of (x) the amount appropriated from the
25Illinois Sports Facilities Fund to the Authority and (y) the
26annual amount certified by the Chairman of the Authority

 

 

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1pursuant to Section 8.25-4 of the State Finance Act and (ii)
2$10,000,000. The Department shall certify that all additional
3amounts shall be paid to the Authority and used for its
4corporate purposes.
5    Within 10 days after receipt, by the Comptroller, of the
6Department's monthly certification of amounts to be paid to or
7on behalf of the Authority and amounts to be paid into the
8General Revenue Fund, the Comptroller shall cause the warrants
9to be drawn for the respective amounts in accordance with the
10directions contained in such certification.
11    Amounts collected by the Department and paid to the
12Authority pursuant to this Section shall be used for the
13corporate purposes of the Authority. On June 15, 1992 and on
14each June 15 thereafter, the Authority shall repay to the
15State Treasurer all amounts paid to it under this Section and
16otherwise remaining available to the Authority after providing
17for (i) payment of principal and interest on, and other
18payments related to, its obligations issued or to be issued
19under Section 13 of the Act, including any deposits required
20to reserve funds created under any indenture or resolution
21authorizing issuance of the obligations and payments to
22providers of credit enhancement, (ii) payment of obligations
23under the provisions of any management agreement with respect
24to a facility or facilities owned by the Authority or of any
25assistance agreement with respect to any facility for which
26financial assistance is provided under this Act, and payment

 

 

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1of other capital and operating expenses of the Authority,
2including any deposits required to reserve funds created for
3repair and replacement of capital assets and to meet the
4obligations of the Authority under any management agreement or
5assistance agreement. Amounts repaid by the Authority to the
6State Treasurer hereunder shall be treated as repayment of
7amounts deposited into the Illinois Sports Facilities Fund and
8credited to the Subsidy Account and used for the corporate
9purposes of the Authority. The State Treasurer shall deposit
10$5,000,000 of the amount received into the General Revenue
11Fund; thereafter, at the beginning of each fiscal year the
12State Treasurer shall certify to the State Comptroller for all
13prior fiscal years the cumulative amount of any deficiencies
14in repayments to the City of Chicago of amounts in the Local
15Government Distributive Fund that would otherwise have been
16allocated to the City of Chicago under the State Revenue
17Sharing Act but instead were paid into the General Revenue
18Fund under Section 6 of the Hotel Operators' Occupation Tax
19Act and that have not been reimbursed, and the Comptroller
20shall, during the fiscal year at the beginning of which the
21certification was made, cause warrants to be drawn from the
22amount received for the repayment of that cumulative amount to
23the City of Chicago until that cumulative amount has been
24fully reimbursed; thereafter, the State Treasurer shall
25deposit the balance of the amount received into the trust fund
26established outside the State Treasury under subsection (g) of

 

 

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1Section 13 of the Metropolitan Pier and Exposition Authority
2Act.
3    Nothing in this Section shall be construed to authorize
4the Authority to impose a tax upon the privilege of engaging in
5any business which under the constitution of the United States
6may not be made the subject of taxation by this State.
7    An ordinance or resolution imposing or discontinuing a tax
8hereunder or effecting a change in the rate thereof shall be
9effective on the first day of the second calendar month next
10following the month in which the ordinance or resolution is
11passed.
12    If the Authority levies a tax authorized by this Section
13it shall transmit to the Department of Revenue not later than 5
14days after the adoption of the ordinance or resolution a
15certified copy of the ordinance or resolution imposing such
16tax whereupon the Department of Revenue shall proceed to
17administer and enforce this Section on behalf of the
18Authority. Upon a change in rate of a tax levied hereunder, or
19upon the discontinuance of the tax, the Authority shall not
20later than 5 days after the effective date of the ordinance or
21resolution discontinuing the tax or effecting a change in rate
22transmit to the Department of Revenue a certified copy of the
23ordinance or resolution effecting such change or
24discontinuance.
25(Source: P.A. 91-935, eff. 6-1-01.)
 

 

 

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1
ARTICLE 70.

 
2    Section 70-5. The Motor Fuel Tax Law is amended by
3changing Section 2a as follows:
 
4    (35 ILCS 505/2a)  (from Ch. 120, par. 418a)
5    Sec. 2a. Except as hereinafter provided, on and after
6January 1, 1990 and before January 1, 2030 January 1, 2025, a
7tax of three-tenths of a cent per gallon is imposed upon the
8privilege of being a receiver in this State of fuel for sale or
9use. Beginning January 1, 2021, this tax is not imposed on
10sales of aviation fuel for so long as the revenue use
11requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
12binding on the State.
13    The tax shall be paid by the receiver in this State who
14first sells or uses fuel. In the case of a sale, the tax shall
15be stated as a separate item on the invoice.
16    For the purpose of the tax imposed by this Section, being a
17receiver of "motor fuel" as defined by Section 1.1 of this Act,
18and aviation fuels, home heating oil and kerosene, but
19excluding liquified petroleum gases, is subject to tax without
20regard to whether the fuel is intended to be used for operation
21of motor vehicles on the public highways and waters. However,
22no such tax shall be imposed upon the importation or receipt of
23aviation fuels and kerosene at airports with over 300,000
24operations per year, for years prior to 1991, and over 170,000

 

 

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1operations per year beginning in 1991, located in a city of
2more than 1,000,000 inhabitants for sale to or use by holders
3of certificates of public convenience and necessity or foreign
4air carrier permits, issued by the United States Department of
5Transportation, and their air carrier affiliates, or upon the
6importation or receipt of aviation fuels and kerosene at
7facilities owned or leased by those certificate or permit
8holders and used in their activities at an airport described
9above. In addition, no such tax shall be imposed upon the
10importation or receipt of diesel fuel or liquefied natural gas
11sold to or used by a rail carrier registered pursuant to
12Section 18c-7201 of the Illinois Vehicle Code or otherwise
13recognized by the Illinois Commerce Commission as a rail
14carrier, to the extent used directly in railroad operations.
15In addition, no such tax shall be imposed when the sale is made
16with delivery to a purchaser outside this State or when the
17sale is made to a person holding a valid license as a receiver.
18In addition, no tax shall be imposed upon diesel fuel or
19liquefied natural gas consumed or used in the operation of
20ships, barges, or vessels, that are used primarily in or for
21the transportation of property in interstate commerce for hire
22on rivers bordering on this State, if the diesel fuel or
23liquefied natural gas is delivered by a licensed receiver to
24the purchaser's barge, ship, or vessel while it is afloat upon
25that bordering river. A specific notation thereof shall be
26made on the invoices or sales slips covering each sale.

 

 

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1(Source: P.A. 100-9, eff. 7-1-17; 101-604, eff. 12-13-19.)
 
2    Section 70-10. The Environmental Impact Fee Law is amended
3by changing Section 390 as follows:
 
4    (415 ILCS 125/390)
5    (Section scheduled to be repealed on January 1, 2025)
6    Sec. 390. Repeal. This Article is repealed on January 1,
72030 January 1, 2025.
8(Source: P.A. 96-161, eff. 8-10-09.)
 
9
ARTICLE 75.

 
10    Section 75-5. The Use Tax Act is amended by changing
11Sections 2, 3, 3-5, 3-10, 3-55, and 9 and by adding Section
121.05 as follows:
 
13    (35 ILCS 105/1.05 new)
14    Sec. 1.05. Legislative intent; leases. It is the intent of
15the General Assembly in enacting this amendatory Act of the
16103rd General Assembly to apply the tax imposed under this
17Act, except as otherwise provided in this Act, to the
18privilege of using in this State tangible personal property,
19other than motor vehicles, watercraft, aircraft, and
20semitrailers, as defined in Section 1-187 of the Illinois
21Vehicle Code, that are required to be registered with an

 

 

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1agency of this State, leased at retail from a retailer, for
2leases in effect, entered into, or renewed on or after January
31, 2025.
 
4    (35 ILCS 105/2)  (from Ch. 120, par. 439.2)
5    Sec. 2. Definitions.
6    "Use" means the exercise by any person of any right or
7power over tangible personal property incident to the
8ownership of that property, or, on and after January 1, 2025,
9incident to the possession or control of, the right to possess
10or control, or a license to use that property through a lease,
11except that it does not include the sale of such property in
12any form as tangible personal property in the regular course
13of business to the extent that such property is not first
14subjected to a use for which it was purchased, and does not
15include the use of such property by its owner for
16demonstration purposes: Provided that the property purchased
17is deemed to be purchased for the purpose of resale, despite
18first being used, to the extent to which it is resold as an
19ingredient of an intentionally produced product or by-product
20of manufacturing. "Use" does not mean the demonstration use or
21interim use of tangible personal property by a retailer before
22he sells that tangible personal property. On and after January
231, 2025, the lease of tangible personal property to a lessee by
24a retailer who is subject to tax on lease receipts under this
25amendatory Act of the 103rd General Assembly does not qualify

 

 

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1as demonstration use or interim use of that property. For
2watercraft or aircraft, if the period of demonstration use or
3interim use by the retailer exceeds 18 months, the retailer
4shall pay on the retailers' original cost price the tax
5imposed by this Act, and no credit for that tax is permitted if
6the watercraft or aircraft is subsequently sold by the
7retailer. "Use" does not mean the physical incorporation of
8tangible personal property, to the extent not first subjected
9to a use for which it was purchased, as an ingredient or
10constituent, into other tangible personal property (a) which
11is sold in the regular course of business or (b) which the
12person incorporating such ingredient or constituent therein
13has undertaken at the time of such purchase to cause to be
14transported in interstate commerce to destinations outside the
15State of Illinois: Provided that the property purchased is
16deemed to be purchased for the purpose of resale, despite
17first being used, to the extent to which it is resold as an
18ingredient of an intentionally produced product or by-product
19of manufacturing.
20    "Lease" means a transfer of the possession or control of,
21the right to possess or control, or a license to use, but not
22title to, tangible personal property for a fixed or
23indeterminate term for consideration, regardless of the name
24by which the transaction is called. "Lease" does not include a
25lease entered into merely as a security agreement that does
26not involve a transfer of possession or control from the

 

 

10300HB4951sam002- 290 -LRB103 38094 HLH 74177 a

1lessor to the lessee.
2    On and after January 1, 2025, the term "sale", when used in
3this Act, includes a lease.
4    "Watercraft" means a Class 2, Class 3, or Class 4
5watercraft as defined in Section 3-2 of the Boat Registration
6and Safety Act, a personal watercraft, or any boat equipped
7with an inboard motor.
8    "Purchase at retail" means the acquisition of the
9ownership of, the or title to, the possession or control of,
10the right to possess or control, or a license to use, tangible
11personal property through a sale at retail.
12    "Purchaser" means anyone who, through a sale at retail,
13acquires the ownership of, the title to, the possession or
14control of, the right to possess or control, or a license to
15use, tangible personal property for a valuable consideration.
16    "Sale at retail" means any transfer of the ownership of or
17title to tangible personal property to a purchaser, for the
18purpose of use, and not for the purpose of resale in any form
19as tangible personal property to the extent not first
20subjected to a use for which it was purchased, for a valuable
21consideration: Provided that the property purchased is deemed
22to be purchased for the purpose of resale, despite first being
23used, to the extent to which it is resold as an ingredient of
24an intentionally produced product or by-product of
25manufacturing. For this purpose, slag produced as an incident
26to manufacturing pig iron or steel and sold is considered to be

 

 

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1an intentionally produced by-product of manufacturing. "Sale
2at retail" includes any such transfer made for resale unless
3made in compliance with Section 2c of the Retailers'
4Occupation Tax Act, as incorporated by reference into Section
512 of this Act. Transactions whereby the possession of the
6property is transferred but the seller retains the title as
7security for payment of the selling price are sales.
8    "Sale at retail" shall also be construed to include any
9Illinois florist's sales transaction in which the purchase
10order is received in Illinois by a florist and the sale is for
11use or consumption, but the Illinois florist has a florist in
12another state deliver the property to the purchaser or the
13purchaser's donee in such other state.
14    Nonreusable tangible personal property that is used by
15persons engaged in the business of operating a restaurant,
16cafeteria, or drive-in is a sale for resale when it is
17transferred to customers in the ordinary course of business as
18part of the sale of food or beverages and is used to deliver,
19package, or consume food or beverages, regardless of where
20consumption of the food or beverages occurs. Examples of those
21items include, but are not limited to nonreusable, paper and
22plastic cups, plates, baskets, boxes, sleeves, buckets or
23other containers, utensils, straws, placemats, napkins, doggie
24bags, and wrapping or packaging materials that are transferred
25to customers as part of the sale of food or beverages in the
26ordinary course of business.

 

 

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1    The purchase, employment and transfer of such tangible
2personal property as newsprint and ink for the primary purpose
3of conveying news (with or without other information) is not a
4purchase, use or sale of tangible personal property.
5    "Selling price" means the consideration for a sale valued
6in money whether received in money or otherwise, including
7cash, credits, property other than as hereinafter provided,
8and services, but, prior to January 1, 2020 and beginning
9again on January 1, 2022, not including the value of or credit
10given for traded-in tangible personal property where the item
11that is traded-in is of like kind and character as that which
12is being sold; beginning January 1, 2020 and until January 1,
132022, "selling price" includes the portion of the value of or
14credit given for traded-in motor vehicles of the First
15Division as defined in Section 1-146 of the Illinois Vehicle
16Code of like kind and character as that which is being sold
17that exceeds $10,000. "Selling price" shall be determined
18without any deduction on account of the cost of the property
19sold, the cost of materials used, labor or service cost or any
20other expense whatsoever, but does not include interest or
21finance charges which appear as separate items on the bill of
22sale or sales contract nor charges that are added to prices by
23sellers on account of the seller's tax liability under the
24Retailers' Occupation Tax Act, or on account of the seller's
25duty to collect, from the purchaser, the tax that is imposed by
26this Act, or, except as otherwise provided with respect to any

 

 

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1cigarette tax imposed by a home rule unit, on account of the
2seller's tax liability under any local occupation tax
3administered by the Department, or, except as otherwise
4provided with respect to any cigarette tax imposed by a home
5rule unit on account of the seller's duty to collect, from the
6purchasers, the tax that is imposed under any local use tax
7administered by the Department. Effective December 1, 1985,
8"selling price" shall include charges that are added to prices
9by sellers on account of the seller's tax liability under the
10Cigarette Tax Act, on account of the seller's duty to collect,
11from the purchaser, the tax imposed under the Cigarette Use
12Tax Act, and on account of the seller's duty to collect, from
13the purchaser, any cigarette tax imposed by a home rule unit.
14    The provisions of this paragraph, which provides only for
15an alternative meaning of "selling price" with respect to the
16sale of certain motor vehicles incident to the contemporaneous
17lease of those motor vehicles, continue in effect and are not
18changed by the tax on leases implemented by this amendatory
19Act of the 103rd General Assembly. Notwithstanding any law to
20the contrary, for any motor vehicle, as defined in Section
211-146 of the Vehicle Code, that is sold on or after January 1,
222015 for the purpose of leasing the vehicle for a defined
23period that is longer than one year and (1) is a motor vehicle
24of the second division that: (A) is a self-contained motor
25vehicle designed or permanently converted to provide living
26quarters for recreational, camping, or travel use, with direct

 

 

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1walk through access to the living quarters from the driver's
2seat; (B) is of the van configuration designed for the
3transportation of not less than 7 nor more than 16 passengers;
4or (C) has a gross vehicle weight rating of 8,000 pounds or
5less or (2) is a motor vehicle of the first division, "selling
6price" or "amount of sale" means the consideration received by
7the lessor pursuant to the lease contract, including amounts
8due at lease signing and all monthly or other regular payments
9charged over the term of the lease. Also included in the
10selling price is any amount received by the lessor from the
11lessee for the leased vehicle that is not calculated at the
12time the lease is executed, including, but not limited to,
13excess mileage charges and charges for excess wear and tear.
14For sales that occur in Illinois, with respect to any amount
15received by the lessor from the lessee for the leased vehicle
16that is not calculated at the time the lease is executed, the
17lessor who purchased the motor vehicle does not incur the tax
18imposed by the Use Tax Act on those amounts, and the retailer
19who makes the retail sale of the motor vehicle to the lessor is
20not required to collect the tax imposed by this Act or to pay
21the tax imposed by the Retailers' Occupation Tax Act on those
22amounts. However, the lessor who purchased the motor vehicle
23assumes the liability for reporting and paying the tax on
24those amounts directly to the Department in the same form
25(Illinois Retailers' Occupation Tax, and local retailers'
26occupation taxes, if applicable) in which the retailer would

 

 

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1have reported and paid such tax if the retailer had accounted
2for the tax to the Department. For amounts received by the
3lessor from the lessee that are not calculated at the time the
4lease is executed, the lessor must file the return and pay the
5tax to the Department by the due date otherwise required by
6this Act for returns other than transaction returns. If the
7retailer is entitled under this Act to a discount for
8collecting and remitting the tax imposed under this Act to the
9Department with respect to the sale of the motor vehicle to the
10lessor, then the right to the discount provided in this Act
11shall be transferred to the lessor with respect to the tax paid
12by the lessor for any amount received by the lessor from the
13lessee for the leased vehicle that is not calculated at the
14time the lease is executed; provided that the discount is only
15allowed if the return is timely filed and for amounts timely
16paid. The "selling price" of a motor vehicle that is sold on or
17after January 1, 2015 for the purpose of leasing for a defined
18period of longer than one year shall not be reduced by the
19value of or credit given for traded-in tangible personal
20property owned by the lessor, nor shall it be reduced by the
21value of or credit given for traded-in tangible personal
22property owned by the lessee, regardless of whether the
23trade-in value thereof is assigned by the lessee to the
24lessor. In the case of a motor vehicle that is sold for the
25purpose of leasing for a defined period of longer than one
26year, the sale occurs at the time of the delivery of the

 

 

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1vehicle, regardless of the due date of any lease payments. A
2lessor who incurs a Retailers' Occupation Tax liability on the
3sale of a motor vehicle coming off lease may not take a credit
4against that liability for the Use Tax the lessor paid upon the
5purchase of the motor vehicle (or for any tax the lessor paid
6with respect to any amount received by the lessor from the
7lessee for the leased vehicle that was not calculated at the
8time the lease was executed) if the selling price of the motor
9vehicle at the time of purchase was calculated using the
10definition of "selling price" as defined in this paragraph.
11Notwithstanding any other provision of this Act to the
12contrary, lessors shall file all returns and make all payments
13required under this paragraph to the Department by electronic
14means in the manner and form as required by the Department.
15This paragraph does not apply to leases of motor vehicles for
16which, at the time the lease is entered into, the term of the
17lease is not a defined period, including leases with a defined
18initial period with the option to continue the lease on a
19month-to-month or other basis beyond the initial defined
20period.
21    The phrase "like kind and character" shall be liberally
22construed (including but not limited to any form of motor
23vehicle for any form of motor vehicle, or any kind of farm or
24agricultural implement for any other kind of farm or
25agricultural implement), while not including a kind of item
26which, if sold at retail by that retailer, would be exempt from

 

 

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1retailers' occupation tax and use tax as an isolated or
2occasional sale.
3    "Department" means the Department of Revenue.
4    "Person" means any natural individual, firm, partnership,
5association, joint stock company, joint adventure, public or
6private corporation, limited liability company, or a receiver,
7executor, trustee, guardian or other representative appointed
8by order of any court.
9    "Retailer" means and includes every person engaged in the
10business of making sales, including, on and after January 1,
112025, leases, at retail as defined in this Section. With
12respect to leases, a "retailer" also means a "lessor", except
13as otherwise provided in this Act.
14    A person who holds himself or herself out as being engaged
15(or who habitually engages) in selling tangible personal
16property at retail is a retailer hereunder with respect to
17such sales (and not primarily in a service occupation)
18notwithstanding the fact that such person designs and produces
19such tangible personal property on special order for the
20purchaser and in such a way as to render the property of value
21only to such purchaser, if such tangible personal property so
22produced on special order serves substantially the same
23function as stock or standard items of tangible personal
24property that are sold at retail.
25    A person whose activities are organized and conducted
26primarily as a not-for-profit service enterprise, and who

 

 

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1engages in selling tangible personal property at retail
2(whether to the public or merely to members and their guests)
3is a retailer with respect to such transactions, excepting
4only a person organized and operated exclusively for
5charitable, religious or educational purposes either (1), to
6the extent of sales by such person to its members, students,
7patients or inmates of tangible personal property to be used
8primarily for the purposes of such person, or (2), to the
9extent of sales by such person of tangible personal property
10which is not sold or offered for sale by persons organized for
11profit. The selling of school books and school supplies by
12schools at retail to students is not "primarily for the
13purposes of" the school which does such selling. This
14paragraph does not apply to nor subject to taxation occasional
15dinners, social or similar activities of a person organized
16and operated exclusively for charitable, religious or
17educational purposes, whether or not such activities are open
18to the public.
19    A person who is the recipient of a grant or contract under
20Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
21serves meals to participants in the federal Nutrition Program
22for the Elderly in return for contributions established in
23amount by the individual participant pursuant to a schedule of
24suggested fees as provided for in the federal Act is not a
25retailer under this Act with respect to such transactions.
26    Persons who engage in the business of transferring

 

 

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1tangible personal property upon the redemption of trading
2stamps are retailers hereunder when engaged in such business.
3    The isolated or occasional sale of tangible personal
4property at retail by a person who does not hold himself out as
5being engaged (or who does not habitually engage) in selling
6such tangible personal property at retail or a sale through a
7bulk vending machine does not make such person a retailer
8hereunder. However, any person who is engaged in a business
9which is not subject to the tax imposed by the Retailers'
10Occupation Tax Act because of involving the sale of or a
11contract to sell real estate or a construction contract to
12improve real estate, but who, in the course of conducting such
13business, transfers tangible personal property to users or
14consumers in the finished form in which it was purchased, and
15which does not become real estate, under any provision of a
16construction contract or real estate sale or real estate sales
17agreement entered into with some other person arising out of
18or because of such nontaxable business, is a retailer to the
19extent of the value of the tangible personal property so
20transferred. If, in such transaction, a separate charge is
21made for the tangible personal property so transferred, the
22value of such property, for the purposes of this Act, is the
23amount so separately charged, but not less than the cost of
24such property to the transferor; if no separate charge is
25made, the value of such property, for the purposes of this Act,
26is the cost to the transferor of such tangible personal

 

 

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1property.
2    "Retailer maintaining a place of business in this State",
3or any like term, means and includes any of the following
4retailers:
5        (1) A retailer having or maintaining within this
6    State, directly or by a subsidiary, an office,
7    distribution house, sales house, warehouse or other place
8    of business, or any agent or other representative
9    operating within this State under the authority of the
10    retailer or its subsidiary, irrespective of whether such
11    place of business or agent or other representative is
12    located here permanently or temporarily, or whether such
13    retailer or subsidiary is licensed to do business in this
14    State. However, the ownership of property that is located
15    at the premises of a printer with which the retailer has
16    contracted for printing and that consists of the final
17    printed product, property that becomes a part of the final
18    printed product, or copy from which the printed product is
19    produced shall not result in the retailer being deemed to
20    have or maintain an office, distribution house, sales
21    house, warehouse, or other place of business within this
22    State.
23        (1.1) A retailer having a contract with a person
24    located in this State under which the person, for a
25    commission or other consideration based upon the sale of
26    tangible personal property by the retailer, directly or

 

 

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1    indirectly refers potential customers to the retailer by
2    providing to the potential customers a promotional code or
3    other mechanism that allows the retailer to track
4    purchases referred by such persons. Examples of mechanisms
5    that allow the retailer to track purchases referred by
6    such persons include but are not limited to the use of a
7    link on the person's Internet website, promotional codes
8    distributed through the person's hand-delivered or mailed
9    material, and promotional codes distributed by the person
10    through radio or other broadcast media. The provisions of
11    this paragraph (1.1) shall apply only if the cumulative
12    gross receipts from sales of tangible personal property by
13    the retailer to customers who are referred to the retailer
14    by all persons in this State under such contracts exceed
15    $10,000 during the preceding 4 quarterly periods ending on
16    the last day of March, June, September, and December. A
17    retailer meeting the requirements of this paragraph (1.1)
18    shall be presumed to be maintaining a place of business in
19    this State but may rebut this presumption by submitting
20    proof that the referrals or other activities pursued
21    within this State by such persons were not sufficient to
22    meet the nexus standards of the United States Constitution
23    during the preceding 4 quarterly periods.
24        (1.2) Beginning July 1, 2011, a retailer having a
25    contract with a person located in this State under which:
26            (A) the retailer sells the same or substantially

 

 

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1        similar line of products as the person located in this
2        State and does so using an identical or substantially
3        similar name, trade name, or trademark as the person
4        located in this State; and
5            (B) the retailer provides a commission or other
6        consideration to the person located in this State
7        based upon the sale of tangible personal property by
8        the retailer.
9        The provisions of this paragraph (1.2) shall apply
10    only if the cumulative gross receipts from sales of
11    tangible personal property by the retailer to customers in
12    this State under all such contracts exceed $10,000 during
13    the preceding 4 quarterly periods ending on the last day
14    of March, June, September, and December.
15        (2) (Blank).
16        (3) (Blank).
17        (4) (Blank).
18        (5) (Blank).
19        (6) (Blank).
20        (7) (Blank).
21        (8) (Blank).
22        (9) Beginning October 1, 2018, a retailer making sales
23    of tangible personal property to purchasers in Illinois
24    from outside of Illinois if:
25            (A) the cumulative gross receipts from sales of
26        tangible personal property to purchasers in Illinois

 

 

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1        are $100,000 or more; or
2            (B) the retailer enters into 200 or more separate
3        transactions for the sale of tangible personal
4        property to purchasers in Illinois.
5        The retailer shall determine on a quarterly basis,
6    ending on the last day of March, June, September, and
7    December, whether he or she meets the criteria of either
8    subparagraph (A) or (B) of this paragraph (9) for the
9    preceding 12-month period. If the retailer meets the
10    threshold of either subparagraph (A) or (B) for a 12-month
11    period, he or she is considered a retailer maintaining a
12    place of business in this State and is required to collect
13    and remit the tax imposed under this Act and file returns
14    for one year. At the end of that one-year period, the
15    retailer shall determine whether he or she met the
16    threshold of either subparagraph (A) or (B) during the
17    preceding 12-month period. If the retailer met the
18    criteria in either subparagraph (A) or (B) for the
19    preceding 12-month period, he or she is considered a
20    retailer maintaining a place of business in this State and
21    is required to collect and remit the tax imposed under
22    this Act and file returns for the subsequent year. If at
23    the end of a one-year period a retailer that was required
24    to collect and remit the tax imposed under this Act
25    determines that he or she did not meet the threshold in
26    either subparagraph (A) or (B) during the preceding

 

 

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1    12-month period, the retailer shall subsequently determine
2    on a quarterly basis, ending on the last day of March,
3    June, September, and December, whether he or she meets the
4    threshold of either subparagraph (A) or (B) for the
5    preceding 12-month period.
6        Beginning January 1, 2020, neither the gross receipts
7    from nor the number of separate transactions for sales of
8    tangible personal property to purchasers in Illinois that
9    a retailer makes through a marketplace facilitator and for
10    which the retailer has received a certification from the
11    marketplace facilitator pursuant to Section 2d of this Act
12    shall be included for purposes of determining whether he
13    or she has met the thresholds of this paragraph (9).
14        (10) Beginning January 1, 2020, a marketplace
15    facilitator that meets a threshold set forth in subsection
16    (b) of Section 2d of this Act.
17    "Bulk vending machine" means a vending machine, containing
18unsorted confections, nuts, toys, or other items designed
19primarily to be used or played with by children which, when a
20coin or coins of a denomination not larger than $0.50 are
21inserted, are dispensed in equal portions, at random and
22without selection by the customer.
23(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 1-1-20;
24101-604, eff. 1-1-20; 102-353, eff. 1-1-22.)
 
25    (35 ILCS 105/3)  (from Ch. 120, par. 439.3)

 

 

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1    Sec. 3. Tax imposed. A tax is imposed upon the privilege of
2using in this State tangible personal property purchased,
3which, on and after January 1, 2025, includes leased, at
4retail from a retailer, including computer software, and
5including photographs, negatives, and positives that are the
6product of photoprocessing, but not including products of
7photoprocessing produced for use in motion pictures for
8commercial exhibition. Beginning January 1, 2001, prepaid
9telephone calling arrangements shall be considered tangible
10personal property subject to the tax imposed under this Act
11regardless of the form in which those arrangements may be
12embodied, transmitted, or fixed by any method now known or
13hereafter developed. Purchases of (1) electricity delivered to
14customers by wire; (2) natural or artificial gas that is
15delivered to customers through pipes, pipelines, or mains; and
16(3) water that is delivered to customers through pipes,
17pipelines, or mains are not subject to tax under this Act. The
18provisions of this amendatory Act of the 98th General Assembly
19are declaratory of existing law as to the meaning and scope of
20this Act.
21    The imposition of the tax under this Act on the privilege
22of using tangible personal property leased at retail applies
23to leases of tangible personal property in effect, entered
24into, or renewed on or after January 1, 2025. In the case of
25leases, except as otherwise provided in this Act, the lessor,
26in collecting the tax, may collect for each tax return period,

 

 

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1only the tax applicable to that part of the selling price
2actually received during such tax return period.
3    The inclusion of leases in the tax imposed under this Act
4by this amendatory Act of the 103rd General Assembly does not,
5however, extend to motor vehicles, watercraft, aircraft, and
6semitrailers, as defined in Section 1-187 of the Illinois
7Vehicle Code, that are required to be registered with an
8agency of this State. The taxation of these items shall
9continue in effect as prior to the effective date of the
10changes made to this Section by this amendatory Act of the
11103rd General Assembly (i.e. dealers owe retailers' occupation
12tax, lessors owe use tax, and lessees are not subject to
13retailers' occupation or use tax).
14(Source: P.A. 98-583, eff. 1-1-14.)
 
15    (35 ILCS 105/3-5)
16    Sec. 3-5. Exemptions. Use, which, on and after January 1,
172025, includes use by a lessee, of the following tangible
18personal property is exempt from the tax imposed by this Act:
19    (1) Personal property purchased from a corporation,
20society, association, foundation, institution, or
21organization, other than a limited liability company, that is
22organized and operated as a not-for-profit service enterprise
23for the benefit of persons 65 years of age or older if the
24personal property was not purchased by the enterprise for the
25purpose of resale by the enterprise.

 

 

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

 

 

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1age or older. A limited liability company may qualify for the
2exemption under this paragraph only if the limited liability
3company is organized and operated exclusively for educational
4purposes. On and after July 1, 1987, however, no entity
5otherwise eligible for this exemption shall make tax-free
6purchases unless it has an active exemption identification
7number issued by the Department.
8    (5) Until July 1, 2003, a passenger car that is a
9replacement vehicle to the extent that the purchase price of
10the car is subject to the Replacement Vehicle Tax.
11    (6) 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,
15certified by the purchaser to be used primarily for graphic
16arts production, and including machinery and equipment
17purchased for lease. Equipment includes chemicals or chemicals
18acting as catalysts but only if the chemicals or chemicals
19acting as catalysts effect a direct and immediate change upon
20a graphic arts product. Beginning on July 1, 2017, graphic
21arts machinery and equipment is included in the manufacturing
22and assembling machinery and equipment exemption under
23paragraph (18).
24    (7) Farm chemicals.
25    (8) Legal tender, currency, medallions, or gold or silver
26coinage issued by the State of Illinois, the government of the

 

 

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

 

 

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1of the tender is separately stated.
2    Farm machinery and equipment shall include precision
3farming equipment that is installed or purchased to be
4installed on farm machinery and equipment, including, but not
5limited to, tractors, harvesters, sprayers, planters, seeders,
6or spreaders. Precision farming equipment includes, but is not
7limited to, soil testing sensors, computers, monitors,
8software, global positioning and mapping systems, and other
9such equipment.
10    Farm machinery and equipment also includes computers,
11sensors, software, and related equipment used primarily in the
12computer-assisted operation of production agriculture
13facilities, equipment, and activities such as, but not limited
14to, the collection, monitoring, and correlation of animal and
15crop data for the purpose of formulating animal diets and
16agricultural chemicals.
17    Beginning on January 1, 2024, farm machinery and equipment
18also includes electrical power generation equipment used
19primarily for production agriculture.
20    This item (11) is exempt from the provisions of Section
213-90.
22    (12) Until June 30, 2013, fuel and petroleum products sold
23to or used by an air common carrier, certified by the carrier
24to be used for consumption, shipment, or storage in the
25conduct of its business as an air common carrier, for a flight
26destined for or returning from a location or locations outside

 

 

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

 

 

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1exploration, drilling, and production equipment, and (vi)
2machinery and equipment purchased for lease; but excluding
3motor vehicles required to be registered under the Illinois
4Vehicle Code.
5    (15) Photoprocessing machinery and equipment, including
6repair and replacement parts, both new and used, including
7that manufactured on special order, certified by the purchaser
8to be used primarily for photoprocessing, and including
9photoprocessing machinery and equipment purchased for lease.
10    (16) Until July 1, 2028, coal and aggregate exploration,
11mining, off-highway hauling, processing, maintenance, and
12reclamation equipment, including replacement parts and
13equipment, and including equipment purchased for lease, but
14excluding motor vehicles required to be registered under the
15Illinois Vehicle Code. The changes made to this Section by
16Public Act 97-767 apply on and after July 1, 2003, but no claim
17for credit or refund is allowed on or after August 16, 2013
18(the effective date of Public Act 98-456) for such taxes paid
19during the period beginning July 1, 2003 and ending on August
2016, 2013 (the effective date of Public Act 98-456).
21    (17) Until July 1, 2003, distillation machinery and
22equipment, sold as a unit or kit, assembled or installed by the
23retailer, certified by the user to be used only for the
24production of ethyl alcohol that will be used for consumption
25as motor fuel or as a component of motor fuel for the personal
26use of the user, and not subject to sale or resale.

 

 

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1    (18) Manufacturing and assembling machinery and equipment
2used primarily in the process of manufacturing or assembling
3tangible personal property for wholesale or retail sale or
4lease, whether that sale or lease is made directly by the
5manufacturer or by some other person, whether the materials
6used in the process are owned by the manufacturer or some other
7person, or whether that sale or lease is made apart from or as
8an incident to the seller's engaging in the service occupation
9of producing machines, tools, dies, jigs, patterns, gauges, or
10other similar items of no commercial value on special order
11for a particular purchaser. The exemption provided by this
12paragraph (18) includes production related tangible personal
13property, as defined in Section 3-50, purchased on or after
14July 1, 2019. The exemption provided by this paragraph (18)
15does not include machinery and equipment used in (i) the
16generation of electricity for wholesale or retail sale; (ii)
17the generation or treatment of natural or artificial gas for
18wholesale or retail sale that is delivered to customers
19through pipes, pipelines, or mains; or (iii) the treatment of
20water for wholesale or retail sale that is delivered to
21customers through pipes, pipelines, or mains. The provisions
22of Public Act 98-583 are declaratory of existing law as to the
23meaning and scope of this exemption. Beginning on July 1,
242017, the exemption provided by this paragraph (18) includes,
25but is not limited to, graphic arts machinery and equipment,
26as defined in paragraph (6) of this Section.

 

 

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1    (19) Personal property delivered to a purchaser or
2purchaser's donee inside Illinois when the purchase order for
3that personal property was received by a florist located
4outside Illinois who has a florist located inside Illinois
5deliver the personal property.
6    (20) Semen used for artificial insemination of livestock
7for direct agricultural production.
8    (21) Horses, or interests in horses, registered with and
9meeting the requirements of any of the Arabian Horse Club
10Registry of America, Appaloosa Horse Club, American Quarter
11Horse Association, United States Trotting Association, or
12Jockey Club, as appropriate, used for purposes of breeding or
13racing for prizes. This item (21) is exempt from the
14provisions of Section 3-90, and the exemption provided for
15under this item (21) applies for all periods beginning May 30,
161995, but no claim for credit or refund is allowed on or after
17January 1, 2008 for such taxes paid during the period
18beginning May 30, 2000 and ending on January 1, 2008.
19    (22) Computers and communications equipment utilized for
20any hospital purpose and equipment used in the diagnosis,
21analysis, or treatment of hospital patients purchased by a
22lessor who leases the equipment, under a lease of one year or
23longer executed or in effect at the time the lessor would
24otherwise be subject to the tax imposed by this Act, to a
25hospital that has been issued an active tax exemption
26identification number by the Department under Section 1g of

 

 

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

 

 

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

 

 

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1water and sewer line extensions, water distribution and
2purification facilities, storm water drainage and retention
3facilities, and sewage treatment facilities, resulting from a
4State or federally declared disaster in Illinois or bordering
5Illinois when such repairs are initiated on facilities located
6in the declared disaster area within 6 months after the
7disaster.
8    (26) Beginning July 1, 1999, game or game birds purchased
9at a "game breeding and hunting preserve area" as that term is
10used in the Wildlife Code. This paragraph is exempt from the
11provisions of Section 3-90.
12    (27) A motor vehicle, as that term is defined in Section
131-146 of the Illinois Vehicle Code, that is donated to a
14corporation, limited liability company, society, association,
15foundation, or institution that is determined by the
16Department to be organized and operated exclusively for
17educational purposes. For purposes of this exemption, "a
18corporation, limited liability company, society, association,
19foundation, or institution organized and operated exclusively
20for educational purposes" means all tax-supported public
21schools, private schools that offer systematic instruction in
22useful branches of learning by methods common to public
23schools and that compare favorably in their scope and
24intensity with the course of study presented in tax-supported
25schools, and vocational or technical schools or institutes
26organized and operated exclusively to provide a course of

 

 

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1study of not less than 6 weeks duration and designed to prepare
2individuals to follow a trade or to pursue a manual,
3technical, mechanical, industrial, business, or commercial
4occupation.
5    (28) Beginning January 1, 2000, personal property,
6including food, purchased through fundraising events for the
7benefit of a public or private elementary or secondary school,
8a group of those schools, or one or more school districts if
9the events are sponsored by an entity recognized by the school
10district that consists primarily of volunteers and includes
11parents and teachers of the school children. This paragraph
12does not apply to fundraising events (i) for the benefit of
13private home instruction or (ii) for which the fundraising
14entity purchases the personal property sold at the events from
15another individual or entity that sold the property for the
16purpose of resale by the fundraising entity and that profits
17from the sale to the fundraising entity. This paragraph is
18exempt from the provisions of Section 3-90.
19    (29) Beginning January 1, 2000 and through December 31,
202001, new or used automatic vending machines that prepare and
21serve hot food and beverages, including coffee, soup, and
22other items, and replacement parts for these machines.
23Beginning January 1, 2002 and through June 30, 2003, machines
24and parts for machines used in commercial, coin-operated
25amusement and vending business if a use or occupation tax is
26paid on the gross receipts derived from the use of the

 

 

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1commercial, coin-operated amusement and vending machines. This
2paragraph is exempt from the provisions of Section 3-90.
3    (30) Beginning January 1, 2001 and through June 30, 2016,
4food for human consumption that is to be consumed off the
5premises where it is sold (other than alcoholic beverages,
6soft drinks, and food that has been prepared for immediate
7consumption) and prescription and nonprescription medicines,
8drugs, medical appliances, and insulin, urine testing
9materials, syringes, and needles used by diabetics, for human
10use, when purchased for use by a person receiving medical
11assistance under Article V of the Illinois Public Aid Code who
12resides in a licensed long-term care facility, as defined in
13the Nursing Home Care Act, or in a licensed facility as defined
14in the ID/DD Community Care Act, the MC/DD Act, or the
15Specialized Mental Health Rehabilitation Act of 2013.
16    (31) Beginning on August 2, 2001 (the effective date of
17Public Act 92-227), computers and communications equipment
18utilized for any hospital purpose and equipment used in the
19diagnosis, analysis, or treatment of hospital patients
20purchased by a lessor who leases the equipment, under a lease
21of one year or longer executed or in effect at the time the
22lessor would otherwise be subject to the tax imposed by this
23Act, to a hospital that has been issued an active tax exemption
24identification number by the Department under Section 1g of
25the Retailers' Occupation Tax Act. If the equipment is leased
26in a manner that does not qualify for this exemption or is used

 

 

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

 

 

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1the time the nonqualifying use occurs. No lessor shall collect
2or attempt to collect an amount (however designated) that
3purports to reimburse that lessor for the tax imposed by this
4Act or the Service Use Tax Act, as the case may be, if the tax
5has not been paid by the lessor. If a lessor improperly
6collects any such amount from the lessee, the lessee shall
7have a legal right to claim a refund of that amount from the
8lessor. If, however, that amount is not refunded to the lessee
9for any reason, the lessor is liable to pay that amount to the
10Department. This paragraph is exempt from the provisions of
11Section 3-90.
12    (33) On and after July 1, 2003 and through June 30, 2004,
13the use in this State of motor vehicles of the second division
14with a gross vehicle weight in excess of 8,000 pounds and that
15are subject to the commercial distribution fee imposed under
16Section 3-815.1 of the Illinois Vehicle Code. Beginning on
17July 1, 2004 and through June 30, 2005, the use in this State
18of motor vehicles of the second division: (i) with a gross
19vehicle weight rating in excess of 8,000 pounds; (ii) that are
20subject to the commercial distribution fee imposed under
21Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
22are primarily used for commercial purposes. Through June 30,
232005, this exemption applies to repair and replacement parts
24added after the initial purchase of such a motor vehicle if
25that motor vehicle is used in a manner that would qualify for
26the rolling stock exemption otherwise provided for in this

 

 

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1Act. For purposes of this paragraph, the term "used for
2commercial purposes" means the transportation of persons or
3property in furtherance of any commercial or industrial
4enterprise, whether for-hire or not.
5    (34) Beginning January 1, 2008, tangible personal property
6used in the construction or maintenance of a community water
7supply, as defined under Section 3.145 of the Environmental
8Protection Act, that is operated by a not-for-profit
9corporation that holds a valid water supply permit issued
10under Title IV of the Environmental Protection Act. This
11paragraph is exempt from the provisions of Section 3-90.
12    (35) Beginning January 1, 2010 and continuing through
13December 31, 2029, materials, parts, equipment, components,
14and furnishings incorporated into or upon an aircraft as part
15of the modification, refurbishment, completion, replacement,
16repair, or maintenance of the aircraft. This exemption
17includes consumable supplies used in the modification,
18refurbishment, completion, replacement, repair, and
19maintenance of aircraft. However, until January 1, 2024, this
20exemption excludes any materials, parts, equipment,
21components, and consumable supplies used in the modification,
22replacement, repair, and maintenance of aircraft engines or
23power plants, whether such engines or power plants are
24installed or uninstalled upon any such aircraft. "Consumable
25supplies" include, but are not limited to, adhesive, tape,
26sandpaper, general purpose lubricants, cleaning solution,

 

 

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1latex gloves, and protective films.
2    Beginning January 1, 2010 and continuing through December
331, 2023, this exemption applies only to the use of qualifying
4tangible personal property by persons who modify, refurbish,
5complete, repair, replace, or maintain aircraft and who (i)
6hold an Air Agency Certificate and are empowered to operate an
7approved repair station by the Federal Aviation
8Administration, (ii) have a Class IV Rating, and (iii) conduct
9operations in accordance with Part 145 of the Federal Aviation
10Regulations. From January 1, 2024 through December 31, 2029,
11this exemption applies only to the use of qualifying tangible
12personal property by: (A) persons who modify, refurbish,
13complete, repair, replace, or maintain aircraft and who (i)
14hold an Air Agency Certificate and are empowered to operate an
15approved repair station by the Federal Aviation
16Administration, (ii) have a Class IV Rating, and (iii) conduct
17operations in accordance with Part 145 of the Federal Aviation
18Regulations; and (B) persons who engage in the modification,
19replacement, repair, and maintenance of aircraft engines or
20power plants without regard to whether or not those persons
21meet the qualifications of item (A).
22    The exemption does not include aircraft operated by a
23commercial air carrier providing scheduled passenger air
24service pursuant to authority issued under Part 121 or Part
25129 of the Federal Aviation Regulations. The changes made to
26this paragraph (35) by Public Act 98-534 are declarative of

 

 

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1existing law. It is the intent of the General Assembly that the
2exemption under this paragraph (35) applies continuously from
3January 1, 2010 through December 31, 2024; however, no claim
4for credit or refund is allowed for taxes paid as a result of
5the disallowance of this exemption on or after January 1, 2015
6and prior to February 5, 2020 (the effective date of Public Act
7101-629).
8    (36) Tangible personal property purchased by a
9public-facilities corporation, as described in Section
1011-65-10 of the Illinois Municipal Code, for purposes of
11constructing or furnishing a municipal convention hall, but
12only if the legal title to the municipal convention hall is
13transferred to the municipality without any further
14consideration by or on behalf of the municipality at the time
15of the completion of the municipal convention hall or upon the
16retirement or redemption of any bonds or other debt
17instruments issued by the public-facilities corporation in
18connection with the development of the municipal convention
19hall. This exemption includes existing public-facilities
20corporations as provided in Section 11-65-25 of the Illinois
21Municipal Code. This paragraph is exempt from the provisions
22of Section 3-90.
23    (37) Beginning January 1, 2017 and through December 31,
242026, menstrual pads, tampons, and menstrual cups.
25    (38) Merchandise that is subject to the Rental Purchase
26Agreement Occupation and Use Tax. The purchaser must certify

 

 

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1that the item is purchased to be rented subject to a
2rental-purchase rental purchase agreement, as defined in the
3Rental-Purchase Rental Purchase Agreement Act, and provide
4proof of registration under the Rental Purchase Agreement
5Occupation and Use Tax Act. This paragraph is exempt from the
6provisions of Section 3-90.
7    (39) Tangible personal property purchased by a purchaser
8who is exempt from the tax imposed by this Act by operation of
9federal law. This paragraph is exempt from the provisions of
10Section 3-90.
11    (40) Qualified tangible personal property used in the
12construction or operation of a data center that has been
13granted a certificate of exemption by the Department of
14Commerce and Economic Opportunity, whether that tangible
15personal property is purchased by the owner, operator, or
16tenant of the data center or by a contractor or subcontractor
17of the owner, operator, or tenant. Data centers that would
18have qualified for a certificate of exemption prior to January
191, 2020 had Public Act 101-31 been in effect may apply for and
20obtain an exemption for subsequent purchases of computer
21equipment or enabling software purchased or leased to upgrade,
22supplement, or replace computer equipment or enabling software
23purchased or leased in the original investment that would have
24qualified.
25    The Department of Commerce and Economic Opportunity shall
26grant a certificate of exemption under this item (40) to

 

 

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

 

 

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1    personal property; and all other tangible personal
2    property that is essential to the operations of a computer
3    data center. The term "qualified tangible personal
4    property" also includes building materials physically
5    incorporated into in to the qualifying data center. To
6    document the exemption allowed under this Section, the
7    retailer must obtain from the purchaser a copy of the
8    certificate of eligibility issued by the Department of
9    Commerce and Economic Opportunity.
10    This item (40) is exempt from the provisions of Section
113-90.
12    (41) Beginning July 1, 2022, breast pumps, breast pump
13collection and storage supplies, and breast pump kits. This
14item (41) is exempt from the provisions of Section 3-90. As
15used in this item (41):
16        "Breast pump" means an electrically controlled or
17    manually controlled pump device designed or marketed to be
18    used to express milk from a human breast during lactation,
19    including the pump device and any battery, AC adapter, or
20    other power supply unit that is used to power the pump
21    device and is packaged and sold with the pump device at the
22    time of sale.
23        "Breast pump collection and storage supplies" means
24    items of tangible personal property designed or marketed
25    to be used in conjunction with a breast pump to collect
26    milk expressed from a human breast and to store collected

 

 

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

 

 

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1    manufacturer or distributor.
2    (42) Tangible personal property sold by or on behalf of
3the State Treasurer pursuant to the Revised Uniform Unclaimed
4Property Act. This item (42) is exempt from the provisions of
5Section 3-90.
6    (43) Beginning on January 1, 2024, tangible personal
7property purchased by an active duty member of the armed
8forces of the United States who presents valid military
9identification and purchases the property using a form of
10payment where the federal government is the payor. The member
11of the armed forces must complete, at the point of sale, a form
12prescribed by the Department of Revenue documenting that the
13transaction is eligible for the exemption under this
14paragraph. Retailers must keep the form as documentation of
15the exemption in their records for a period of not less than 6
16years. "Armed forces of the United States" means the United
17States Army, Navy, Air Force, Marine Corps, or Coast Guard.
18This paragraph is exempt from the provisions of Section 3-90.
19    (44) Use by the lessee of the following leased tangible
20personal property:
21        (1) software transferred subject to a license that
22    meets the following requirements:
23            (A) it is evidenced by a written agreement signed
24        by the licensor and the customer;
25                (i) an electronic agreement in which the
26            customer accepts the license by means of an

 

 

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1            electronic signature that is verifiable and can be
2            authenticated and is attached to or made part of
3            the license will comply with this requirement;
4                (ii) a license agreement in which the customer
5            electronically accepts the terms by clicking "I
6            agree" does not comply with this requirement;
7            (B) it restricts the customer's duplication and
8        use of the software;
9            (C) it prohibits the customer from licensing,
10        sublicensing, or transferring the software to a third
11        party (except to a related party) without the
12        permission and continued control of the licensor;
13            (D) the licensor has a policy of providing another
14        copy at minimal or no charge if the customer loses or
15        damages the software, or of permitting the licensee to
16        make and keep an archival copy, and such policy is
17        either stated in the license agreement, supported by
18        the licensor's books and records, or supported by a
19        notarized statement made under penalties of perjury by
20        the licensor; and
21            (E) the customer must destroy or return all copies
22        of the software to the licensor at the end of the
23        license period; this provision is deemed to be met, in
24        the case of a perpetual license, without being set
25        forth in the license agreement; and
26        (2) property that is subject to a tax on lease

 

 

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1    receipts imposed by a home rule unit of local government
2    if the ordinance imposing that tax was adopted prior to
3    January 1, 2023.
4(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
5Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
6eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
7Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
8eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
9revised 12-12-23.)
 
10    (35 ILCS 105/3-10)
11    Sec. 3-10. Rate of tax. Unless otherwise provided in this
12Section, the tax imposed by this Act is at the rate of 6.25% of
13either the selling price or the fair market value, if any, of
14the tangible personal property, which, on and after January 1,
152025, includes leases of tangible personal property. In all
16cases where property functionally used or consumed is the same
17as the property that was purchased at retail, then the tax is
18imposed on the selling price of the property. In all cases
19where property functionally used or consumed is a by-product
20or waste product that has been refined, manufactured, or
21produced from property purchased at retail, then the tax is
22imposed on the lower of the fair market value, if any, of the
23specific property so used in this State or on the selling price
24of the property purchased at retail. For purposes of this
25Section "fair market value" means the price at which property

 

 

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1would change hands between a willing buyer and a willing
2seller, neither being under any compulsion to buy or sell and
3both having reasonable knowledge of the relevant facts. The
4fair market value shall be established by Illinois sales by
5the taxpayer of the same property as that functionally used or
6consumed, or if there are no such sales by the taxpayer, then
7comparable sales or purchases of property of like kind and
8character in Illinois.
9    Beginning on July 1, 2000 and through December 31, 2000,
10with respect to motor fuel, as defined in Section 1.1 of the
11Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
12the Use Tax Act, the tax is imposed at the rate of 1.25%.
13    Beginning on August 6, 2010 through August 15, 2010, and
14beginning again on August 5, 2022 through August 14, 2022,
15with respect to sales tax holiday items as defined in Section
163-6 of this Act, the tax is imposed at the rate of 1.25%.
17    With respect to gasohol, the tax imposed by this Act
18applies to (i) 70% of the proceeds of sales made on or after
19January 1, 1990, and before July 1, 2003, (ii) 80% of the
20proceeds of sales made on or after July 1, 2003 and on or
21before July 1, 2017, (iii) 100% of the proceeds of sales made
22after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
23the proceeds of sales made on or after January 1, 2024 and on
24or before December 31, 2028, and (v) 100% of the proceeds of
25sales made after December 31, 2028. If, at any time, however,
26the tax under this Act on sales of gasohol is imposed at the

 

 

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1rate of 1.25%, then the tax imposed by this Act applies to 100%
2of the proceeds of sales of gasohol made during that time.
3    With respect to mid-range ethanol blends, the tax imposed
4by this Act applies to (i) 80% of the proceeds of sales made on
5or after January 1, 2024 and on or before December 31, 2028 and
6(ii) 100% of the proceeds of sales made thereafter. If, at any
7time, however, the tax under this Act on sales of mid-range
8ethanol blends is imposed at the rate of 1.25%, then the tax
9imposed by this Act applies to 100% of the proceeds of sales of
10mid-range ethanol blends made during that time.
11    With respect to majority blended ethanol fuel, the tax
12imposed by this Act does not apply to the proceeds of sales
13made on or after July 1, 2003 and on or before December 31,
142028 but applies to 100% of the proceeds of sales made
15thereafter.
16    With respect to biodiesel blends with no less than 1% and
17no more than 10% biodiesel, the tax imposed by this Act applies
18to (i) 80% of the proceeds of sales made on or after July 1,
192003 and on or before December 31, 2018 and (ii) 100% of the
20proceeds of sales made after December 31, 2018 and before
21January 1, 2024. On and after January 1, 2024 and on or before
22December 31, 2030, the taxation of biodiesel, renewable
23diesel, and biodiesel blends shall be as provided in Section
243-5.1. If, at any time, however, the tax under this Act on
25sales of biodiesel blends with no less than 1% and no more than
2610% biodiesel is imposed at the rate of 1.25%, then the tax

 

 

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

 

 

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

 

 

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

 

 

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1definition of "over-the-counter-drugs". For the purposes of
2this paragraph, "over-the-counter-drug" means a drug for human
3use that contains a label that identifies the product as a drug
4as required by 21 CFR 201.66. The "over-the-counter-drug"
5label includes:
6        (A) a "Drug Facts" panel; or
7        (B) a statement of the "active ingredient(s)" with a
8    list of those ingredients contained in the compound,
9    substance or preparation.
10    Beginning on January 1, 2014 (the effective date of Public
11Act 98-122), "prescription and nonprescription medicines and
12drugs" includes medical cannabis purchased from a registered
13dispensing organization under the Compassionate Use of Medical
14Cannabis Program Act.
15    As used in this Section, "adult use cannabis" means
16cannabis subject to tax under the Cannabis Cultivation
17Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
18and does not include cannabis subject to tax under the
19Compassionate Use of Medical Cannabis Program Act.
20    If the property that is purchased at retail from a
21retailer is acquired outside Illinois and used outside
22Illinois before being brought to Illinois for use here and is
23taxable under this Act, the "selling price" on which the tax is
24computed shall be reduced by an amount that represents a
25reasonable allowance for depreciation for the period of prior
26out-of-state use. No depreciation is allowed in cases where

 

 

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1the tax under this Act is imposed on lease receipts.
2(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
3Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
460-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
54-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)
 
6    (35 ILCS 105/3-55)  (from Ch. 120, par. 439.3-55)
7    Sec. 3-55. Multistate exemption. To prevent actual or
8likely multistate taxation, the tax imposed by this Act does
9not apply to the use of tangible personal property in this
10State under the following circumstances:
11    (a) The use, in this State, of tangible personal property
12acquired outside this State by a nonresident individual and
13brought into this State by the individual for his or her own
14use while temporarily within this State or while passing
15through this State.
16    (b) (Blank).
17    (c) The use, in this State, by owners or , lessors,
18lessees, or shippers of tangible personal property that is
19utilized by interstate carriers for hire for use as rolling
20stock moving in interstate commerce as long as so used by the
21interstate carriers for hire, and equipment operated by a
22telecommunications provider, licensed as a common carrier by
23the Federal Communications Commission, which is permanently
24installed in or affixed to aircraft moving in interstate
25commerce.

 

 

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1    (d) The use, in this State, of tangible personal property
2that is acquired outside this State and caused to be brought
3into this State by a person who has already paid a tax in
4another State in respect to the sale, purchase, or use of that
5property, to the extent of the amount of the tax properly due
6and paid in the other State.
7    (e) The temporary storage, in this State, of tangible
8personal property that is acquired outside this State and
9that, after being brought into this State and stored here
10temporarily, is used solely outside this State or is
11physically attached to or incorporated into other tangible
12personal property that is used solely outside this State, or
13is altered by converting, fabricating, manufacturing,
14printing, processing, or shaping, and, as altered, is used
15solely outside this State.
16    (f) The temporary storage in this State of building
17materials and fixtures that are acquired either in this State
18or outside this State by an Illinois registered combination
19retailer and construction contractor, and that the purchaser
20thereafter uses outside this State by incorporating that
21property into real estate located outside this State.
22    (g) The use or purchase of tangible personal property by a
23common carrier by rail or motor that receives the physical
24possession of the property in Illinois, and that transports
25the property, or shares with another common carrier in the
26transportation of the property, out of Illinois on a standard

 

 

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

 

 

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

 

 

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1        billing for the purchase of the aircraft or the
2        authorized approval for return to service, completion
3        of the maintenance record entry, and completion of the
4        test flight and ground test for inspection, as
5        required by 14 C.F.R. 91.407;
6            (B) the aircraft is not based or registered in
7        this State after the purchase of the aircraft; and
8            (C) the purchaser provides the Department with a
9        signed and dated certification, on a form prescribed
10        by the Department, certifying that the requirements of
11        this item (1) are met. The certificate must also
12        include the name and address of the purchaser, the
13        address of the location where the aircraft is to be
14        titled or registered, the address of the primary
15        physical location of the aircraft, and other
16        information that the Department may reasonably
17        require.
18        (2) Beginning on July 1, 2007, no tax is imposed under
19    this Act on the use of an aircraft, as defined in Section 3
20    of the Illinois Aeronautics Act, that is temporarily
21    located in this State for the purpose of a prepurchase
22    evaluation if all of the following conditions are met:
23            (A) the aircraft is not based or registered in
24        this State after the prepurchase evaluation; and
25            (B) the purchaser provides the Department with a
26        signed and dated certification, on a form prescribed

 

 

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1        by the Department, certifying that the requirements of
2        this item (2) are met. The certificate must also
3        include the name and address of the purchaser, the
4        address of the location where the aircraft is to be
5        titled or registered, the address of the primary
6        physical location of the aircraft, and other
7        information that the Department may reasonably
8        require.
9        (3) Beginning on July 1, 2007, no tax is imposed under
10    this Act on the use of an aircraft, as defined in Section 3
11    of the Illinois Aeronautics Act, that is temporarily
12    located in this State for the purpose of a post-sale
13    customization if all of the following conditions are met:
14            (A) the aircraft leaves this State within 15 days
15        after the authorized approval for return to service,
16        completion of the maintenance record entry, and
17        completion of the test flight and ground test for
18        inspection, as required by 14 C.F.R. 91.407;
19            (B) the aircraft is not based or registered in
20        this State either before or after the post-sale
21        customization; and
22            (C) the purchaser provides the Department with a
23        signed and dated certification, on a form prescribed
24        by the Department, certifying that the requirements of
25        this item (3) are met. The certificate must also
26        include the name and address of the purchaser, the

 

 

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1        address of the location where the aircraft is to be
2        titled or registered, the address of the primary
3        physical location of the aircraft, and other
4        information that the Department may reasonably
5        require.
6    If tax becomes due under this subsection (h-2) because of
7the purchaser's use of the aircraft in this State, the
8purchaser shall file a return with the Department and pay the
9tax on the fair market value of the aircraft. This return and
10payment of the tax must be made no later than 30 days after the
11aircraft is used in a taxable manner in this State. The tax is
12based on the fair market value of the aircraft on the date that
13it is first used in a taxable manner in this State.
14    For purposes of this subsection (h-2):
15    "Based in this State" means hangared, stored, or otherwise
16used, excluding post-sale customizations as defined in this
17Section, for 10 or more days in each 12-month period
18immediately following the date of the sale of the aircraft.
19    "Post-sale customization" means any improvement,
20maintenance, or repair that is performed on an aircraft
21following a transfer of ownership of the aircraft.
22    "Prepurchase evaluation" means an examination of an
23aircraft to provide a potential purchaser with information
24relevant to the potential purchase.
25    "Registered in this State" means an aircraft registered
26with the Department of Transportation, Aeronautics Division,

 

 

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1or titled or registered with the Federal Aviation
2Administration to an address located in this State.
3    This subsection (h-2) is exempt from the provisions of
4Section 3-90.
5    (i) Beginning July 1, 1999, the use, in this State, of fuel
6acquired outside this State and brought into this State in the
7fuel supply tanks of locomotives engaged in freight hauling
8and passenger service for interstate commerce. This subsection
9is exempt from the provisions of Section 3-90.
10    (j) Beginning on January 1, 2002 and through June 30,
112016, the use of tangible personal property purchased from an
12Illinois retailer by a taxpayer engaged in centralized
13purchasing activities in Illinois who will, upon receipt of
14the property in Illinois, temporarily store the property in
15Illinois (i) for the purpose of subsequently transporting it
16outside this State for use or consumption thereafter solely
17outside this State or (ii) for the purpose of being processed,
18fabricated, or manufactured into, attached to, or incorporated
19into other tangible personal property to be transported
20outside this State and thereafter used or consumed solely
21outside this State. The Director of Revenue shall, pursuant to
22rules adopted in accordance with the Illinois Administrative
23Procedure Act, issue a permit to any taxpayer in good standing
24with the Department who is eligible for the exemption under
25this subsection (j). The permit issued under this subsection
26(j) shall authorize the holder, to the extent and in the manner

 

 

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1specified in the rules adopted under this Act, to purchase
2tangible personal property from a retailer exempt from the
3taxes imposed by this Act. Taxpayers shall maintain all
4necessary books and records to substantiate the use and
5consumption of all such tangible personal property outside of
6the State of Illinois.
7(Source: P.A. 100-321, eff. 8-24-17.)
 
8    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
9    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
10and trailers that are required to be registered with an agency
11of this State, each retailer required or authorized to collect
12the tax imposed by this Act shall pay to the Department the
13amount of such tax (except as otherwise provided) at the time
14when he is required to file his return for the period during
15which such tax was collected, less a discount of 2.1% prior to
16January 1, 1990, and 1.75% on and after January 1, 1990, or $5
17per calendar year, whichever is greater, which is allowed to
18reimburse the retailer for expenses incurred in collecting the
19tax, keeping records, preparing and filing returns, remitting
20the tax and supplying data to the Department on request. When
21determining the discount allowed under this Section, retailers
22shall include the amount of tax that would have been due at the
236.25% rate but for the 1.25% rate imposed on sales tax holiday
24items under Public Act 102-700. The discount under this
25Section is not allowed for the 1.25% portion of taxes paid on

 

 

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

 

 

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1each tax return period, only the tax applicable to that part of
2the selling price actually received during such tax return
3period.
4    In the case of leases, except as otherwise provided in
5this Act, the lessor, in collecting the tax, may collect for
6each tax return period, only the tax applicable to that part of
7the selling price actually received during such tax return
8period.
9    Except as provided in this Section, on or before the
10twentieth day of each calendar month, such retailer shall file
11a return for the preceding calendar month. Such return shall
12be filed on forms prescribed by the Department and shall
13furnish such information as the Department may reasonably
14require. The return shall include the gross receipts on food
15for human consumption that is to be consumed off the premises
16where it is sold (other than alcoholic beverages, food
17consisting of or infused with adult use cannabis, soft drinks,
18and food that has been prepared for immediate consumption)
19which were received during the preceding calendar month,
20quarter, or year, as appropriate, and upon which tax would
21have been due but for the 0% rate imposed under Public Act
22102-700. The return shall also include the amount of tax that
23would have been due on food for human consumption that is to be
24consumed off the premises where it is sold (other than
25alcoholic beverages, food consisting of or infused with adult
26use cannabis, soft drinks, and food that has been prepared for

 

 

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1immediate consumption) but for the 0% rate imposed under
2Public Act 102-700.
3    On and after January 1, 2018, except for returns required
4to be filed prior to January 1, 2023 for motor vehicles,
5watercraft, aircraft, and trailers that are required to be
6registered with an agency of this State, with respect to
7retailers whose annual gross receipts average $20,000 or more,
8all returns required to be filed pursuant to this Act shall be
9filed electronically. On and after January 1, 2023, with
10respect to retailers whose annual gross receipts average
11$20,000 or more, all returns required to be filed pursuant to
12this Act, including, but not limited to, returns for motor
13vehicles, watercraft, aircraft, and trailers that are required
14to be registered with an agency of this State, shall be filed
15electronically. Retailers who demonstrate that they do not
16have access to the Internet or demonstrate hardship in filing
17electronically may petition the Department to waive the
18electronic filing requirement.
19    The Department may require returns to be filed on a
20quarterly basis. If so required, a return for each calendar
21quarter shall be filed on or before the twentieth day of the
22calendar month following the end of such calendar quarter. The
23taxpayer shall also file a return with the Department for each
24of the first two months of each calendar quarter, on or before
25the twentieth day of the following calendar month, stating:
26        1. The name of the seller;

 

 

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

 

 

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1"aviation fuel" means jet fuel and aviation gasoline.
2    If a taxpayer fails to sign a return within 30 days after
3the proper notice and demand for signature by the Department,
4the return shall be considered valid and any amount shown to be
5due on the return shall be deemed assessed.
6    Notwithstanding any other provision of this Act to the
7contrary, retailers subject to tax on cannabis shall file all
8cannabis tax returns and shall make all cannabis tax payments
9by electronic means in the manner and form required by the
10Department.
11    Beginning October 1, 1993, a taxpayer who has an average
12monthly tax liability of $150,000 or more shall make all
13payments required by rules of the Department by electronic
14funds transfer. Beginning October 1, 1994, a taxpayer who has
15an average monthly tax liability of $100,000 or more shall
16make all payments required by rules of the Department by
17electronic funds transfer. Beginning October 1, 1995, a
18taxpayer who has an average monthly tax liability of $50,000
19or more shall make all payments required by rules of the
20Department by electronic funds transfer. Beginning October 1,
212000, a taxpayer who has an annual tax liability of $200,000 or
22more shall make all payments required by rules of the
23Department by electronic funds transfer. The term "annual tax
24liability" shall be 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. The term "average monthly
2tax liability" means the sum of the taxpayer's liabilities
3under this Act, and under all other State and local occupation
4and use tax laws administered by the Department, for the
5immediately preceding calendar year divided by 12. Beginning
6on October 1, 2002, a taxpayer who has a tax liability in the
7amount set forth in subsection (b) of Section 2505-210 of the
8Department of Revenue Law shall make all payments required by
9rules of the Department by electronic funds transfer.
10    Before August 1 of each year beginning in 1993, the
11Department shall notify all taxpayers required to make
12payments by electronic funds transfer. All taxpayers required
13to make payments by electronic funds transfer shall make those
14payments for a minimum of one year beginning on October 1.
15    Any taxpayer not required to make payments by electronic
16funds transfer may make payments by electronic funds transfer
17with the permission of the Department.
18    All taxpayers required to make payment by electronic funds
19transfer and any taxpayers authorized to voluntarily make
20payments by electronic funds transfer shall make those
21payments in the manner authorized by the Department.
22    The Department shall adopt such rules as are necessary to
23effectuate a program of electronic funds transfer and the
24requirements of this Section.
25    Before October 1, 2000, if the taxpayer's average monthly
26tax liability to the Department under this Act, the Retailers'

 

 

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1Occupation Tax Act, the Service Occupation Tax Act, the
2Service Use Tax Act was $10,000 or more during the preceding 4
3complete calendar quarters, he shall file a return with the
4Department each month by the 20th day of the month next
5following the month during which such tax liability is
6incurred and shall make payments to the Department on or
7before the 7th, 15th, 22nd and last day of the month during
8which such liability is incurred. On and after October 1,
92000, if the taxpayer's average monthly tax liability to the
10Department under this Act, the Retailers' Occupation Tax Act,
11the Service Occupation Tax Act, and the Service Use Tax Act was
12$20,000 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
16payment to the Department on or before the 7th, 15th, 22nd and
17last day of the month during which such liability is incurred.
18If the month during which such tax liability is incurred began
19prior to January 1, 1985, each payment shall be in an amount
20equal to 1/4 of the taxpayer's actual liability for the month
21or an amount set by the Department not to exceed 1/4 of the
22average monthly liability of the taxpayer to the Department
23for the preceding 4 complete calendar quarters (excluding the
24month of highest liability and the month of lowest liability
25in such 4 quarter period). If the month during which such tax
26liability is incurred begins on or after January 1, 1985, and

 

 

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1prior to January 1, 1987, each payment shall be in an amount
2equal to 22.5% of the taxpayer's actual liability for the
3month or 27.5% of the taxpayer's liability for the same
4calendar month of the preceding year. If the month during
5which such tax liability is incurred begins on or after
6January 1, 1987, and prior to January 1, 1988, each payment
7shall be in an amount equal to 22.5% of the taxpayer's actual
8liability for the month or 26.25% of the taxpayer's liability
9for the same calendar month of the preceding year. If the month
10during which such tax liability is incurred begins on or after
11January 1, 1988, and prior to January 1, 1989, or begins on or
12after January 1, 1996, each payment shall be in an amount equal
13to 22.5% of the taxpayer's actual liability for the month or
1425% of the taxpayer's liability for the same calendar month of
15the preceding year. If the month during which such tax
16liability is incurred begins on or after January 1, 1989, and
17prior to January 1, 1996, each payment shall be in an amount
18equal to 22.5% of the taxpayer's actual liability for the
19month or 25% of the taxpayer's liability for the same calendar
20month of the preceding year or 100% of the taxpayer's actual
21liability for the quarter monthly reporting period. The amount
22of such quarter monthly payments shall be credited against the
23final tax liability of the taxpayer's return for that month.
24Before October 1, 2000, once applicable, the requirement of
25the making of quarter monthly payments to the Department shall
26continue until such taxpayer's average monthly liability to

 

 

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

 

 

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1Department for a change in such taxpayer's reporting status.
2The Department shall change such taxpayer's reporting status
3unless it finds that such change is seasonal in nature and not
4likely to be long term. Quarter monthly payment status shall
5be determined under this paragraph as if the rate reduction to
61.25% in Public Act 102-700 on sales tax holiday items had not
7occurred. For quarter monthly payments due on or after July 1,
82023 and through June 30, 2024, "25% of the taxpayer's
9liability for the same calendar month of the preceding year"
10shall be determined as if the rate reduction to 1.25% in Public
11Act 102-700 on sales tax holiday items had not occurred.
12Quarter monthly payment status shall be determined under this
13paragraph as if the rate reduction to 0% in Public Act 102-700
14on food for human consumption that is to be consumed off the
15premises where it is sold (other than alcoholic beverages,
16food consisting of or infused with adult use cannabis, soft
17drinks, and food that has been prepared for immediate
18consumption) had not occurred. For quarter monthly payments
19due under this paragraph on or after July 1, 2023 and through
20June 30, 2024, "25% of the taxpayer's liability for the same
21calendar month of the preceding year" shall be determined as
22if the rate reduction to 0% in Public Act 102-700 had not
23occurred. If any such quarter monthly payment is not paid at
24the time or in the amount required by this Section, then the
25taxpayer shall be liable for penalties and interest on the
26difference between the minimum amount due and the amount of

 

 

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

 

 

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

 

 

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

 

 

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1report the transfer of all the aircraft, watercraft, motor
2vehicles or trailers involved in that transaction to the
3Department on the same uniform invoice-transaction reporting
4return form. For purposes of this Section, "watercraft" means
5a Class 2, Class 3, or Class 4 watercraft as defined in Section
63-2 of the Boat Registration and Safety Act, a personal
7watercraft, or any boat equipped with an inboard motor.
8    In addition, with respect to motor vehicles, watercraft,
9aircraft, and trailers that are required to be registered with
10an agency of this State, every person who is engaged in the
11business of leasing or renting such items and who, in
12connection with such business, sells any such item to a
13retailer for the purpose of resale is, notwithstanding any
14other provision of this Section to the contrary, authorized to
15meet the return-filing requirement of this Act by reporting
16the transfer of all the aircraft, watercraft, motor vehicles,
17or trailers transferred for resale during a month to the
18Department on the same uniform invoice-transaction reporting
19return form on or before the 20th of the month following the
20month in which the transfer takes place. Notwithstanding any
21other provision of this Act to the contrary, all returns filed
22under this paragraph must be filed by electronic means in the
23manner and form as required by the Department.
24    The transaction reporting return in the case of motor
25vehicles or trailers that are required to be registered with
26an agency of this State, shall be the same document as the

 

 

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1Uniform Invoice referred to in Section 5-402 of the Illinois
2Vehicle Code and must show the name and address of the seller;
3the name and address of the purchaser; the amount of the
4selling price 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; such
16other information as is required in Section 5-402 of the
17Illinois Vehicle Code, and such other information as the
18Department may reasonably require.
19    The transaction reporting return in the case of watercraft
20and aircraft must show the name and address of the seller; the
21name and address of the purchaser; the amount of the selling
22price including the amount allowed by the retailer for
23traded-in property, if any; the amount allowed by the retailer
24for the traded-in tangible personal property, if any, to the
25extent to which Section 2 of this Act allows an exemption for
26the value of traded-in property; the balance payable after

 

 

10300HB4951sam002- 362 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 363 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 364 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 365 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 366 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 367 -LRB103 38094 HLH 74177 a

1    Beginning August 1, 2000, each month the Department shall
2pay into the State and Local Sales Tax Reform Fund 100% of the
3net revenue realized for the preceding month from the 1.25%
4rate on the selling price of motor fuel and gasohol. If, in any
5month, the tax on sales tax holiday items, as defined in
6Section 3-6, is imposed at the rate of 1.25%, then the
7Department shall pay 100% of the net revenue realized for that
8month from the 1.25% rate on the selling price of sales tax
9holiday items into the State and Local Sales Tax Reform Fund.
10    Beginning January 1, 1990, each month the Department shall
11pay into the Local Government Tax Fund 16% of the net revenue
12realized for the preceding month from the 6.25% general rate
13on the selling price of tangible personal property which is
14purchased outside Illinois at retail from a retailer and which
15is titled or registered by an agency of this State's
16government.
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, 2011, each month the Department shall
25pay into the Clean Air Act Permit Fund 80% of the net revenue
26realized for the preceding month from the 6.25% general rate

 

 

10300HB4951sam002- 368 -LRB103 38094 HLH 74177 a

1on the selling price of sorbents used in Illinois in the
2process of sorbent injection as used to comply with the
3Environmental Protection Act or the federal Clean Air Act, but
4the total payment into the Clean Air Act Permit Fund under this
5Act and the Retailers' Occupation Tax Act shall not exceed
6$2,000,000 in any fiscal year.
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 Service 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 Service Use Tax Act, the Service Occupation Tax Act, and
16the Retailers' Occupation Tax Act shall not exceed $18,000,000
17in any State fiscal year. As used in this paragraph, the
18"average monthly deficit" shall be equal to the difference
19between the average monthly claims for payment by the fund and
20the average monthly revenues deposited into the fund,
21excluding payments made pursuant to this paragraph.
22    Beginning July 1, 2015, of the remainder of the moneys
23received by the Department under this Act, the Service Use Tax
24Act, the Service Occupation Tax Act, and the Retailers'
25Occupation Tax Act, each month the Department shall deposit
26$500,000 into the State Crime Laboratory Fund.

 

 

10300HB4951sam002- 369 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 370 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 371 -LRB103 38094 HLH 74177 a

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.

 

 

10300HB4951sam002- 372 -LRB103 38094 HLH 74177 a

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
262017199,000,000

 

 

10300HB4951sam002- 373 -LRB103 38094 HLH 74177 a

12018210,000,000
22019221,000,000
32020233,000,000
42021300,000,000
52022300,000,000
62023300,000,000
72024 300,000,000
82025 300,000,000
92026 300,000,000
102027 375,000,000
112028 375,000,000
122029 375,000,000
132030 375,000,000
142031 375,000,000
152032 375,000,000
162033 375,000,000
172034375,000,000
182035375,000,000
192036450,000,000
20and
21each fiscal year
22thereafter that bonds
23are outstanding under
24Section 13.2 of the
25Metropolitan Pier and
26Exposition Authority Act,

 

 

10300HB4951sam002- 374 -LRB103 38094 HLH 74177 a

1but not after fiscal year 2060.
2    Beginning July 20, 1993 and in each month of each fiscal
3year thereafter, one-eighth of the amount requested in the
4certificate of the Chairman of the Metropolitan Pier and
5Exposition Authority for that fiscal year, less the amount
6deposited into the McCormick Place Expansion Project Fund by
7the State Treasurer in the respective month under subsection
8(g) of Section 13 of the Metropolitan Pier and Exposition
9Authority Act, plus cumulative deficiencies in the deposits
10required under this Section for previous months and years,
11shall be deposited into the McCormick Place Expansion Project
12Fund, until the full amount requested for the fiscal year, but
13not in excess of the amount specified above as "Total
14Deposit", has been deposited.
15    Subject to payment of amounts into the Capital Projects
16Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, for aviation fuel sold on or after December 1, 2019,
20the Department shall each month deposit into the Aviation Fuel
21Sales Tax Refund Fund an amount estimated by the Department to
22be required for refunds of the 80% portion of the tax on
23aviation fuel under this Act. The Department shall only
24deposit moneys into the Aviation Fuel Sales Tax Refund Fund
25under this paragraph for so long as the revenue use
26requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are

 

 

10300HB4951sam002- 375 -LRB103 38094 HLH 74177 a

1binding on the State.
2    Subject to payment of amounts into the Build Illinois Fund
3and the McCormick Place Expansion Project Fund pursuant to the
4preceding paragraphs or in any amendments thereto hereafter
5enacted, beginning July 1, 1993 and ending on September 30,
62013, the Department shall each month pay into the Illinois
7Tax Increment Fund 0.27% of 80% of the net revenue realized for
8the preceding month from the 6.25% general rate on the selling
9price of tangible personal property.
10    Subject to payment of amounts into the Build Illinois
11Fund, the McCormick Place Expansion Project Fund, the Illinois
12Tax Increment Fund, and the Energy Infrastructure Fund
13pursuant to the preceding paragraphs or in any amendments to
14this Section hereafter enacted, beginning on the first day of
15the first calendar month to occur on or after August 26, 2014
16(the effective date of Public Act 98-1098), each month, from
17the collections made under Section 9 of the Use Tax Act,
18Section 9 of the Service Use Tax Act, Section 9 of the Service
19Occupation Tax Act, and Section 3 of the Retailers' Occupation
20Tax Act, the Department shall pay into the Tax Compliance and
21Administration Fund, to be used, subject to appropriation, to
22fund additional auditors and compliance personnel at the
23Department of Revenue, an amount equal to 1/12 of 5% of 80% of
24the cash receipts collected during the preceding fiscal year
25by the Audit Bureau of the Department under the Use Tax Act,
26the Service Use Tax Act, the Service Occupation Tax Act, the

 

 

10300HB4951sam002- 376 -LRB103 38094 HLH 74177 a

1Retailers' Occupation Tax Act, and associated local occupation
2and use taxes administered by the Department.
3    Subject to payments of amounts into the Build Illinois
4Fund, the McCormick Place Expansion Project Fund, the Illinois
5Tax Increment Fund, and the Tax Compliance and Administration
6Fund as provided in this Section, beginning on July 1, 2018 the
7Department shall pay each month into the Downstate Public
8Transportation Fund the moneys required to be so paid under
9Section 2-3 of the Downstate Public Transportation Act.
10    Subject to successful execution and delivery of a
11public-private agreement between the public agency and private
12entity and completion of the civic build, beginning on July 1,
132023, of the remainder of the moneys received by the
14Department under the Use Tax Act, the Service Use Tax Act, the
15Service Occupation Tax Act, and this Act, the Department shall
16deposit the following specified deposits in the aggregate from
17collections under the Use Tax Act, the Service Use Tax Act, the
18Service Occupation Tax Act, and the Retailers' Occupation Tax
19Act, as required under Section 8.25g of the State Finance Act
20for distribution consistent with the Public-Private
21Partnership for Civic and Transit Infrastructure Project Act.
22The moneys received by the Department pursuant to this Act and
23required to be deposited into the Civic and Transit
24Infrastructure Fund are subject to the pledge, claim, and
25charge set forth in Section 25-55 of the Public-Private
26Partnership for Civic and Transit Infrastructure Project Act.

 

 

10300HB4951sam002- 377 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 378 -LRB103 38094 HLH 74177 a

1the payment of amounts into the State and Local Sales Tax
2Reform Fund, the Build Illinois Fund, the McCormick Place
3Expansion Project Fund, the Illinois Tax Increment Fund, and
4the Tax Compliance and Administration Fund as provided in this
5Section, the Department shall pay each month into the Road
6Fund the amount estimated to represent 16% of the net revenue
7realized from the taxes imposed on motor fuel and gasohol.
8Beginning July 1, 2022 and until July 1, 2023, subject to the
9payment of amounts into the State and Local Sales Tax Reform
10Fund, the Build Illinois Fund, the McCormick Place Expansion
11Project Fund, the Illinois Tax Increment Fund, and the Tax
12Compliance and Administration Fund as provided in this
13Section, the Department shall pay each month into the Road
14Fund the amount estimated to represent 32% of the net revenue
15realized from the taxes imposed on motor fuel and gasohol.
16Beginning July 1, 2023 and until July 1, 2024, subject to the
17payment of amounts into the State and Local Sales Tax Reform
18Fund, the Build Illinois Fund, the McCormick Place Expansion
19Project Fund, the Illinois Tax Increment Fund, and the Tax
20Compliance and Administration Fund as provided in this
21Section, the Department shall pay each month into the Road
22Fund the amount estimated to represent 48% of the net revenue
23realized from the taxes imposed on motor fuel and gasohol.
24Beginning July 1, 2024 and until July 1, 2025, subject to the
25payment of amounts into the State and Local Sales Tax Reform
26Fund, the Build Illinois Fund, the McCormick Place Expansion

 

 

10300HB4951sam002- 379 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 380 -LRB103 38094 HLH 74177 a

1equal to 1.7% of 80% of the net revenue realized under this Act
2for the second preceding month. Beginning April 1, 2000, this
3transfer is no longer required and shall not be made.
4    Net revenue realized for a month shall be the revenue
5collected by the State pursuant to this Act, less the amount
6paid out during that month as refunds to taxpayers for
7overpayment of liability.
8    For greater simplicity of administration, manufacturers,
9importers and wholesalers whose products are sold at retail in
10Illinois by numerous retailers, and who wish to do so, may
11assume the responsibility for accounting and paying to the
12Department all tax accruing under this Act with respect to
13such sales, if the retailers who are affected do not make
14written objection to the Department to this arrangement.
15(Source: P.A. 102-700, Article 60, Section 60-15, eff.
164-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;
17102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff.
187-28-23.)
 
19    Section 75-10. The Service Use Tax Act is amended by
20changing Sections 2, 3, 3-5, 3-10, and 9 and by adding Section
211.05 as follows:
 
22    (35 ILCS 110/1.05 new)
23    Sec. 1.05. Legislative intent; leases. It is the intent of
24the General Assembly in enacting this amendatory Act of the

 

 

10300HB4951sam002- 381 -LRB103 38094 HLH 74177 a

1103rd General Assembly to apply the tax imposed under this
2Act, except as otherwise provided in this Act, to the
3privilege of using tangible personal property, other than
4motor vehicles, watercraft, aircraft, and semitrailers, as
5defined in Section 1-187 of the Illinois Vehicle Code, that
6are required to be registered with an agency of this State,
7transferred by lease, as an incident of a purchase of service,
8for leases in effect, entered into, or renewed on or after
9January 1, 2025.
 
10    (35 ILCS 110/2)  (from Ch. 120, par. 439.32)
11    Sec. 2. Definitions. In this Act:
12    "Use" means the exercise by any person of any right or
13power over tangible personal property incident to the
14ownership of that property, or, on and after January 1, 2025,
15incident to the possession or control of, the right to possess
16or control, or a license to use that property through a lease,
17but does not include the sale or use for demonstration by him
18of that property in any form as tangible personal property in
19the regular course of business. "Use" does not mean the
20interim use of tangible personal property. On and after
21January 1, 2025, the lease of tangible personal property to a
22lessee by a serviceman who is subject to tax on lease receipts
23under this amendatory Act of the 103rd General Assembly does
24not qualify as demonstration use or interim use of that
25property. "Use" does not mean nor the physical incorporation

 

 

10300HB4951sam002- 382 -LRB103 38094 HLH 74177 a

1of tangible personal property, as an ingredient or
2constituent, into other tangible personal property, (a) which
3is sold in the regular course of business or (b) which the
4person incorporating such ingredient or constituent therein
5has undertaken at the time of such purchase to cause to be
6transported in interstate commerce to destinations outside the
7State of Illinois.
8    "Lease" means a transfer of the possession or control of,
9the right to possess or control, or a license to use, but not
10title to, tangible personal property for a fixed or
11indeterminate term for consideration, regardless of the name
12by which the transaction is called. "Lease" does not include a
13lease entered into merely as a security agreement that does
14not involve a transfer of possession from the lessor to the
15lessee.
16    On and after January 1, 2025, the term "sale", when used in
17this Act with respect to tangible personal property, includes
18a lease.
19    "Purchased from a serviceman" means the acquisition of the
20ownership of, the or title to, the possession or control of,
21the right to possess or control, or a license to use, tangible
22personal property through a sale of service.
23    "Purchaser" means any person who, through a sale of
24service, acquires the ownership of, the or title to, the
25possession or control of, the right to possess or control, or a
26license to use, any tangible personal property.

 

 

10300HB4951sam002- 383 -LRB103 38094 HLH 74177 a

1    "Cost price" means the consideration paid by the
2serviceman for a purchase, including, on and after January 1,
32025, a lease, valued in money, whether paid in money or
4otherwise, including cash, credits and services, and shall be
5determined without any deduction on account of the supplier's
6cost of the property sold or on account of any other expense
7incurred by the supplier. When a serviceman contracts out part
8or all of the services required in his sale of service, it
9shall be presumed that the cost price to the serviceman of the
10property transferred to him or her by his or her subcontractor
11is equal to 50% of the subcontractor's charges to the
12serviceman in the absence of proof of the consideration paid
13by the subcontractor for the purchase of such property.
14    "Selling price" means the consideration for a sale,
15including, on and after January 1, 2025, a lease, valued in
16money whether received in money or otherwise, including cash,
17credits and service, and shall be determined without any
18deduction on account of the serviceman's cost of the property
19sold, the cost of materials used, labor or service cost or any
20other expense whatsoever, but does not include interest or
21finance charges which appear as separate items on the bill of
22sale or sales contract nor charges that are added to prices by
23sellers on account of the seller's duty to collect, from the
24purchaser, the tax that is imposed by this Act.
25    "Department" means the Department of Revenue.
26    "Person" means any natural individual, firm, partnership,

 

 

10300HB4951sam002- 384 -LRB103 38094 HLH 74177 a

1association, joint stock company, joint venture, public or
2private corporation, limited liability company, and any
3receiver, executor, trustee, guardian or other representative
4appointed by order of any court.
5    "Sale of service" means any transaction except:
6        (1) a retail sale of tangible personal property
7    taxable under the Retailers' Occupation Tax Act or under
8    the Use Tax Act.
9        (2) a sale of tangible personal property for the
10    purpose of resale made in compliance with Section 2c of
11    the Retailers' Occupation Tax Act.
12        (3) except as hereinafter provided, a sale or transfer
13    of tangible personal property as an incident to the
14    rendering of service for or by any governmental body, or
15    for or by any corporation, society, association,
16    foundation or institution organized and operated
17    exclusively for charitable, religious or educational
18    purposes or any not-for-profit corporation, society,
19    association, foundation, institution or organization which
20    has no compensated officers or employees and which is
21    organized and operated primarily for the recreation of
22    persons 55 years of age or older. A limited liability
23    company may qualify for the exemption under this paragraph
24    only if the limited liability company is organized and
25    operated exclusively for educational purposes.
26        (4) (blank).

 

 

10300HB4951sam002- 385 -LRB103 38094 HLH 74177 a

1        (4a) a sale or transfer of tangible personal property
2    as an incident to the rendering of service for owners or ,
3    lessors, lessees, or shippers of tangible personal
4    property which is utilized by interstate carriers for hire
5    for use as rolling stock moving in interstate commerce so
6    long as so used by interstate carriers for hire, and
7    equipment operated by a telecommunications provider,
8    licensed as a common carrier by the Federal Communications
9    Commission, which is permanently installed in or affixed
10    to aircraft moving in interstate commerce.
11        (4a-5) on and after July 1, 2003 and through June 30,
12    2004, a sale or transfer of a motor vehicle of the second
13    division with a gross vehicle weight in excess of 8,000
14    pounds as an incident to the rendering of service if that
15    motor vehicle is subject to the commercial distribution
16    fee imposed under Section 3-815.1 of the Illinois Vehicle
17    Code. Beginning on July 1, 2004 and through June 30, 2005,
18    the use in this State of motor vehicles of the second
19    division: (i) with a gross vehicle weight rating in excess
20    of 8,000 pounds; (ii) that are subject to the commercial
21    distribution fee imposed under Section 3-815.1 of the
22    Illinois Vehicle Code; and (iii) that are primarily used
23    for commercial purposes. Through June 30, 2005, this
24    exemption applies to repair and replacement parts added
25    after the initial purchase of such a motor vehicle if that
26    motor vehicle is used in a manner that would qualify for

 

 

10300HB4951sam002- 386 -LRB103 38094 HLH 74177 a

1    the rolling stock exemption otherwise provided for in this
2    Act. For purposes of this paragraph, "used for commercial
3    purposes" means the transportation of persons or property
4    in furtherance of any commercial or industrial enterprise
5    whether for-hire or not.
6        (5) a sale or transfer of machinery and equipment used
7    primarily in the process of the manufacturing or
8    assembling, either in an existing, an expanded or a new
9    manufacturing facility, of tangible personal property for
10    wholesale or retail sale or lease, whether such sale or
11    lease is made directly by the manufacturer or by some
12    other person, whether the materials used in the process
13    are owned by the manufacturer or some other person, or
14    whether such sale or lease is made apart from or as an
15    incident to the seller's engaging in a service occupation
16    and the applicable tax is a Service Use Tax or Service
17    Occupation Tax, rather than Use Tax or Retailers'
18    Occupation Tax. The exemption provided by this paragraph
19    (5) includes production related tangible personal
20    property, as defined in Section 3-50 of the Use Tax Act,
21    purchased on or after July 1, 2019. The exemption provided
22    by this paragraph (5) does not include machinery and
23    equipment used in (i) the generation of electricity for
24    wholesale or retail sale; (ii) the generation or treatment
25    of natural or artificial gas for wholesale or retail sale
26    that is delivered to customers through pipes, pipelines,

 

 

10300HB4951sam002- 387 -LRB103 38094 HLH 74177 a

1    or mains; or (iii) the treatment of water for wholesale or
2    retail sale that is delivered to customers through pipes,
3    pipelines, or mains. The provisions of Public Act 98-583
4    are declaratory of existing law as to the meaning and
5    scope of this exemption. The exemption under this
6    paragraph (5) is exempt from the provisions of Section
7    3-75.
8        (5a) the repairing, reconditioning or remodeling, for
9    a common carrier by rail, of tangible personal property
10    which belongs to such carrier for hire, and as to which
11    such carrier receives the physical possession of the
12    repaired, reconditioned or remodeled item of tangible
13    personal property in Illinois, and which such carrier
14    transports, or shares with another common carrier in the
15    transportation of such property, out of Illinois on a
16    standard uniform bill of lading showing the person who
17    repaired, reconditioned or remodeled the property to a
18    destination outside Illinois, for use outside Illinois.
19        (5b) a sale or transfer of tangible personal property
20    which is produced by the seller thereof on special order
21    in such a way as to have made the applicable tax the
22    Service Occupation Tax or the Service Use Tax, rather than
23    the Retailers' Occupation Tax or the Use Tax, for an
24    interstate carrier by rail which receives the physical
25    possession of such property in Illinois, and which
26    transports such property, or shares with another common

 

 

10300HB4951sam002- 388 -LRB103 38094 HLH 74177 a

1    carrier in the transportation of such property, out of
2    Illinois on a standard uniform bill of lading showing the
3    seller of the property as the shipper or consignor of such
4    property to a destination outside Illinois, for use
5    outside Illinois.
6        (6) until July 1, 2003, a sale or transfer of
7    distillation machinery and equipment, sold as a unit or
8    kit and assembled or installed by the retailer, which
9    machinery and equipment is certified by the user to be
10    used only for the production of ethyl alcohol that will be
11    used for consumption as motor fuel or as a component of
12    motor fuel for the personal use of such user and not
13    subject to sale or resale.
14        (7) at the election of any serviceman not required to
15    be otherwise registered as a retailer under Section 2a of
16    the Retailers' Occupation Tax Act, made for each fiscal
17    year sales of service in which the aggregate annual cost
18    price of tangible personal property transferred as an
19    incident to the sales of service is less than 35%, or 75%
20    in the case of servicemen transferring prescription drugs
21    or servicemen engaged in graphic arts production, of the
22    aggregate annual total gross receipts from all sales of
23    service. The purchase of such tangible personal property
24    by the serviceman shall be subject to tax under the
25    Retailers' Occupation Tax Act and the Use Tax Act.
26    However, if a primary serviceman who has made the election

 

 

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1    described in this paragraph subcontracts service work to a
2    secondary serviceman who has also made the election
3    described in this paragraph, the primary serviceman does
4    not incur a Use Tax liability if the secondary serviceman
5    (i) has paid or will pay Use Tax on his or her cost price
6    of any tangible personal property transferred to the
7    primary serviceman and (ii) certifies that fact in writing
8    to the primary serviceman.
9    Tangible personal property transferred incident to the
10completion of a maintenance agreement is exempt from the tax
11imposed pursuant to this Act.
12    Exemption (5) also includes machinery and equipment used
13in the general maintenance or repair of such exempt machinery
14and equipment or for in-house manufacture of exempt machinery
15and equipment. On and after July 1, 2017, exemption (5) also
16includes graphic arts machinery and equipment, as defined in
17paragraph (5) of Section 3-5. The machinery and equipment
18exemption does not include machinery and equipment used in (i)
19the generation of electricity for wholesale or retail sale;
20(ii) the generation or treatment of natural or artificial gas
21for wholesale or retail sale that is delivered to customers
22through pipes, pipelines, or mains; or (iii) the treatment of
23water for wholesale or retail sale that is delivered to
24customers through pipes, pipelines, or mains. The provisions
25of Public Act 98-583 are declaratory of existing law as to the
26meaning and scope of this exemption. For the purposes of

 

 

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1exemption (5), each of these terms shall have the following
2meanings: (1) "manufacturing process" shall mean the
3production of any article of tangible personal property,
4whether such article is a finished product or an article for
5use in the process of manufacturing or assembling a different
6article of tangible personal property, by procedures commonly
7regarded as manufacturing, processing, fabricating, or
8refining which changes some existing material or materials
9into a material with a different form, use or name. In relation
10to a recognized integrated business composed of a series of
11operations which collectively constitute manufacturing, or
12individually constitute manufacturing operations, the
13manufacturing process shall be deemed to commence with the
14first operation or stage of production in the series, and
15shall not be deemed to end until the completion of the final
16product in the last operation or stage of production in the
17series; and further, for purposes of exemption (5),
18photoprocessing is deemed to be a manufacturing process of
19tangible personal property for wholesale or retail sale; (2)
20"assembling process" shall mean the production of any article
21of tangible personal property, whether such article is a
22finished product or an article for use in the process of
23manufacturing or assembling a different article of tangible
24personal property, by the combination of existing materials in
25a manner commonly regarded as assembling which results in a
26material of a different form, use or name; (3) "machinery"

 

 

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1shall mean major mechanical machines or major components of
2such machines contributing to a manufacturing or assembling
3process; and (4) "equipment" shall include any independent
4device or tool separate from any machinery but essential to an
5integrated manufacturing or assembly process; including
6computers used primarily in a manufacturer's computer assisted
7design, computer assisted manufacturing (CAD/CAM) system; or
8any subunit or assembly comprising a component of any
9machinery or auxiliary, adjunct or attachment parts of
10machinery, such as tools, dies, jigs, fixtures, patterns and
11molds; or any parts which require periodic replacement in the
12course of normal operation; but shall not include hand tools.
13Equipment includes chemicals or chemicals acting as catalysts
14but only if the chemicals or chemicals acting as catalysts
15effect a direct and immediate change upon a product being
16manufactured or assembled for wholesale or retail sale or
17lease. The purchaser of such machinery and equipment who has
18an active resale registration number shall furnish such number
19to the seller at the time of purchase. The purchaser of such
20machinery and equipment and tools without an active resale
21registration number shall prepare a certificate of exemption
22stating facts establishing the exemption, which certificate
23shall be available to the Department for inspection or audit.
24The Department shall prescribe the form of the certificate.
25    Any informal rulings, opinions or letters issued by the
26Department in response to an inquiry or request for any

 

 

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1opinion from any person regarding the coverage and
2applicability of exemption (5) to specific devices shall be
3published, maintained as a public record, and made available
4for public inspection and copying. If the informal ruling,
5opinion or letter contains trade secrets or other confidential
6information, where possible the Department shall delete such
7information prior to publication. Whenever such informal
8rulings, opinions, or letters contain any policy of general
9applicability, the Department shall formulate and adopt such
10policy as a rule in accordance with the provisions of the
11Illinois Administrative Procedure Act.
12    On and after July 1, 1987, no entity otherwise eligible
13under exemption (3) of this Section shall make tax-free
14purchases unless it has an active exemption identification
15number issued by the Department.
16    The purchase, employment and transfer of such tangible
17personal property as newsprint and ink for the primary purpose
18of conveying news (with or without other information) is not a
19purchase, use or sale of service or of tangible personal
20property within the meaning of this Act.
21    "Serviceman" means any person who is engaged in the
22occupation of making sales of service.
23    "Sale at retail" means "sale at retail" as defined in the
24Retailers' Occupation Tax Act, which, on and after January 1,
252025, is defined to include leases.
26    "Supplier" means any person who makes sales of tangible

 

 

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1personal property to servicemen for the purpose of resale as
2an incident to a sale of service.
3    "Serviceman maintaining a place of business in this
4State", or any like term, means and includes any serviceman:
5        (1) having or maintaining within this State, directly
6    or by a subsidiary, an office, distribution house, sales
7    house, warehouse or other place of business, or any agent
8    or other representative operating within this State under
9    the authority of the serviceman or its subsidiary,
10    irrespective of whether such place of business or agent or
11    other representative is located here permanently or
12    temporarily, or whether such serviceman or subsidiary is
13    licensed to do business in this State;
14        (1.1) having a contract with a person located in this
15    State under which the person, for a commission or other
16    consideration based on the sale of service by the
17    serviceman, directly or indirectly refers potential
18    customers to the serviceman by providing to the potential
19    customers a promotional code or other mechanism that
20    allows the serviceman to track purchases referred by such
21    persons. Examples of mechanisms that allow the serviceman
22    to track purchases referred by such persons include but
23    are not limited to the use of a link on the person's
24    Internet website, promotional codes distributed through
25    the person's hand-delivered or mailed material, and
26    promotional codes distributed by the person through radio

 

 

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1    or other broadcast media. The provisions of this paragraph
2    (1.1) shall apply only if the cumulative gross receipts
3    from sales of service by the serviceman to customers who
4    are referred to the serviceman by all persons in this
5    State under such contracts exceed $10,000 during the
6    preceding 4 quarterly periods ending on the last day of
7    March, June, September, and December; a serviceman meeting
8    the requirements of this paragraph (1.1) shall be presumed
9    to be maintaining a place of business in this State but may
10    rebut this presumption by submitting proof that the
11    referrals or other activities pursued within this State by
12    such persons were not sufficient to meet the nexus
13    standards of the United States Constitution during the
14    preceding 4 quarterly periods;
15        (1.2) beginning July 1, 2011, having a contract with a
16    person located in this State under which:
17            (A) the serviceman sells the same or substantially
18        similar line of services as the person located in this
19        State and does so using an identical or substantially
20        similar name, trade name, or trademark as the person
21        located in this State; and
22            (B) the serviceman provides a commission or other
23        consideration to the person located in this State
24        based upon the sale of services by the serviceman.
25    The provisions of this paragraph (1.2) shall apply only if
26    the cumulative gross receipts from sales of service by the

 

 

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1    serviceman to customers in this State under all such
2    contracts exceed $10,000 during the preceding 4 quarterly
3    periods ending on the last day of March, June, September,
4    and December;
5        (2) soliciting orders for tangible personal property
6    by means of a telecommunication or television shopping
7    system (which utilizes toll free numbers) which is
8    intended by the retailer to be broadcast by cable
9    television or other means of broadcasting, to consumers
10    located in this State;
11        (3) pursuant to a contract with a broadcaster or
12    publisher located in this State, soliciting orders for
13    tangible personal property by means of advertising which
14    is disseminated primarily to consumers located in this
15    State and only secondarily to bordering jurisdictions;
16        (4) soliciting orders for tangible personal property
17    by mail if the solicitations are substantial and recurring
18    and if the retailer benefits from any banking, financing,
19    debt collection, telecommunication, or marketing
20    activities occurring in this State or benefits from the
21    location in this State of authorized installation,
22    servicing, or repair facilities;
23        (5) being owned or controlled by the same interests
24    which own or control any retailer engaging in business in
25    the same or similar line of business in this State;
26        (6) having a franchisee or licensee operating under

 

 

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1    its trade name if the franchisee or licensee is required
2    to collect the tax under this Section;
3        (7) pursuant to a contract with a cable television
4    operator located in this State, soliciting orders for
5    tangible personal property by means of advertising which
6    is transmitted or distributed over a cable television
7    system in this State;
8        (8) engaging in activities in Illinois, which
9    activities in the state in which the supply business
10    engaging in such activities is located would constitute
11    maintaining a place of business in that state; or
12        (9) beginning October 1, 2018, making sales of service
13    to purchasers in Illinois from outside of Illinois if:
14            (A) the cumulative gross receipts from sales of
15        service to purchasers in Illinois are $100,000 or
16        more; or
17            (B) the serviceman enters into 200 or more
18        separate transactions for sales of service to
19        purchasers in Illinois.
20        The serviceman shall determine on a quarterly basis,
21    ending on the last day of March, June, September, and
22    December, whether he or she meets the criteria of either
23    subparagraph (A) or (B) of this paragraph (9) for the
24    preceding 12-month period. If the serviceman meets the
25    criteria of either subparagraph (A) or (B) for a 12-month
26    period, he or she is considered a serviceman maintaining a

 

 

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1    place of business in this State and is required to collect
2    and remit the tax imposed under this Act and file returns
3    for one year. At the end of that one-year period, the
4    serviceman shall determine whether the serviceman met the
5    criteria of either subparagraph (A) or (B) during the
6    preceding 12-month period. If the serviceman met the
7    criteria in either subparagraph (A) or (B) for the
8    preceding 12-month period, he or she is considered a
9    serviceman maintaining a place of business in this State
10    and is required to collect and remit the tax imposed under
11    this Act and file returns for the subsequent year. If at
12    the end of a one-year period a serviceman that was
13    required to collect and remit the tax imposed under this
14    Act determines that he or she did not meet the criteria in
15    either subparagraph (A) or (B) during the preceding
16    12-month period, the serviceman subsequently shall
17    determine on a quarterly basis, ending on the last day of
18    March, June, September, and December, whether he or she
19    meets the criteria of either subparagraph (A) or (B) for
20    the preceding 12-month period.
21        Beginning January 1, 2020, neither the gross receipts
22    from nor the number of separate transactions for sales of
23    service to purchasers in Illinois that a serviceman makes
24    through a marketplace facilitator and for which the
25    serviceman has received a certification from the
26    marketplace facilitator pursuant to Section 2d of this Act

 

 

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1    shall be included for purposes of determining whether he
2    or she has met the thresholds of this paragraph (9).
3        (10) Beginning January 1, 2020, a marketplace
4    facilitator, as defined in Section 2d of this Act.
5(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
6100-587, eff. 6-4-18; 100-863, eff. 8-14-18; 101-9, Article
710, Section 10-15, eff. 6-5-19; 101-9, Article 25, Section
825-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 
9    (35 ILCS 110/3)  (from Ch. 120, par. 439.33)
10    Sec. 3. Tax imposed. A tax is imposed upon the privilege of
11using in this State real or tangible personal property
12acquired, which, on and after January 1, 2025, includes
13tangible personal property acquired through a lease, as an
14incident to the purchase of a service from a serviceman,
15including computer software, and including photographs,
16negatives, and positives that are the product of
17photoprocessing, but not including products of photoprocessing
18produced for use in motion pictures for public commercial
19exhibition. Beginning January 1, 2001, prepaid telephone
20calling arrangements shall be considered tangible personal
21property subject to the tax imposed under this Act regardless
22of the form in which those arrangements may be embodied,
23transmitted, or fixed by any method now known or hereafter
24developed. Purchases of (1) electricity delivered to customers
25by wire; (2) natural or artificial gas that is delivered to

 

 

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1customers through pipes, pipelines, or mains; and (3) water
2that is delivered to customers through pipes, pipelines, or
3mains are not subject to tax under this Act. The provisions of
4this amendatory Act of the 98th General Assembly are
5declaratory of existing law as to the meaning and scope of this
6Act.
7    The imposition of the tax under this Act on leases applies
8to leases of tangible personal property in effect, entered
9into, or renewed on or after January 1, 2025. In the case of
10leases, except as otherwise provided in this Act, the
11serviceman who is a lessor, in collecting the tax, may collect
12for each tax return period only the tax applicable to that part
13of the selling price actually received during such tax return
14period.
15(Source: P.A. 98-583, eff. 1-1-14.)
 
16    (35 ILCS 110/3-5)
17    Sec. 3-5. Exemptions. Use of the following tangible
18personal property is exempt from the tax imposed by this Act:
19    (1) Personal property purchased from a corporation,
20society, association, foundation, institution, or
21organization, other than a limited liability company, that is
22organized and operated as a not-for-profit service enterprise
23for the benefit of persons 65 years of age or older if the
24personal property was not purchased by the enterprise for the
25purpose of resale by the enterprise.

 

 

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

 

 

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

 

 

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1tanks and dry boxes shall include units sold separately from a
2motor vehicle required to be licensed and units sold mounted
3on a motor vehicle required to be licensed if the selling price
4of the tender is separately stated.
5    Farm machinery and equipment shall include precision
6farming equipment that is installed or purchased to be
7installed on farm machinery and equipment, including, but not
8limited to, tractors, harvesters, sprayers, planters, seeders,
9or spreaders. Precision farming equipment includes, but is not
10limited to, soil testing sensors, computers, monitors,
11software, global positioning and mapping systems, and other
12such equipment.
13    Farm machinery and equipment also includes computers,
14sensors, software, and related equipment used primarily in the
15computer-assisted operation of production agriculture
16facilities, equipment, and activities such as, but not limited
17to, the collection, monitoring, and correlation of animal and
18crop data for the purpose of formulating animal diets and
19agricultural chemicals.
20    Beginning on January 1, 2024, farm machinery and equipment
21also includes electrical power generation equipment used
22primarily for production agriculture.
23    This item (7) is exempt from the provisions of Section
243-75.
25    (8) Until June 30, 2013, fuel and petroleum products sold
26to or used by an air common carrier, certified by the carrier

 

 

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

 

 

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

 

 

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1for direct agricultural production.
2    (14) Horses, or interests in horses, registered with and
3meeting the requirements of any of the Arabian Horse Club
4Registry of America, Appaloosa Horse Club, American Quarter
5Horse Association, United States Trotting Association, or
6Jockey Club, as appropriate, used for purposes of breeding or
7racing for prizes. This item (14) is exempt from the
8provisions of Section 3-75, and the exemption provided for
9under this item (14) applies for all periods beginning May 30,
101995, but no claim for credit or refund is allowed on or after
11January 1, 2008 (the effective date of Public Act 95-88) for
12such taxes paid during the period beginning May 30, 2000 and
13ending on January 1, 2008 (the effective date of Public Act
1495-88).
15    (15) Computers and communications equipment utilized for
16any hospital purpose and equipment used in the diagnosis,
17analysis, or treatment of hospital patients purchased by a
18lessor who leases the equipment, under a lease of one year or
19longer executed or in effect at the time the lessor would
20otherwise be subject to the tax imposed by this Act, to a
21hospital that has been issued an active tax exemption
22identification number by the Department under Section 1g of
23the Retailers' Occupation Tax Act. If the equipment is leased
24in a manner that does not qualify for this exemption or is used
25in any other non-exempt manner, the lessor shall be liable for
26the tax imposed under this Act or the Use Tax Act, as the case

 

 

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

 

 

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

 

 

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1in the declared disaster area within 6 months after the
2disaster.
3    (19) Beginning July 1, 1999, game or game birds purchased
4at a "game breeding and hunting preserve area" as that term is
5used in the Wildlife Code. This paragraph is exempt from the
6provisions of Section 3-75.
7    (20) A motor vehicle, as that term is defined in Section
81-146 of the Illinois Vehicle Code, that is donated to a
9corporation, limited liability company, society, association,
10foundation, or institution that is determined by the
11Department to be organized and operated exclusively for
12educational purposes. For purposes of this exemption, "a
13corporation, limited liability company, society, association,
14foundation, or institution organized and operated exclusively
15for educational purposes" means all tax-supported public
16schools, private schools that offer systematic instruction in
17useful branches of learning by methods common to public
18schools and that compare favorably in their scope and
19intensity with the course of study presented in tax-supported
20schools, and vocational or technical schools or institutes
21organized and operated exclusively to provide a course of
22study of not less than 6 weeks duration and designed to prepare
23individuals to follow a trade or to pursue a manual,
24technical, mechanical, industrial, business, or commercial
25occupation.
26    (21) Beginning January 1, 2000, personal property,

 

 

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1including food, purchased through fundraising events for the
2benefit of a public or private elementary or secondary school,
3a group of those schools, or one or more school districts if
4the events are sponsored by an entity recognized by the school
5district that consists primarily of volunteers and includes
6parents and teachers of the school children. This paragraph
7does not apply to fundraising events (i) for the benefit of
8private home instruction or (ii) for which the fundraising
9entity purchases the personal property sold at the events from
10another individual or entity that sold the property for the
11purpose of resale by the fundraising entity and that profits
12from the sale to the fundraising entity. This paragraph is
13exempt from the provisions of Section 3-75.
14    (22) Beginning January 1, 2000 and through December 31,
152001, new or used automatic vending machines that prepare and
16serve hot food and beverages, including coffee, soup, and
17other items, and replacement parts for these machines.
18Beginning January 1, 2002 and through June 30, 2003, machines
19and parts for machines used in commercial, coin-operated
20amusement and vending business if a use or occupation tax is
21paid on the gross receipts derived from the use of the
22commercial, coin-operated amusement and vending machines. This
23paragraph is exempt from the provisions of Section 3-75.
24    (23) Beginning August 23, 2001 and through June 30, 2016,
25food for human consumption that is to be consumed off the
26premises where it is sold (other than alcoholic beverages,

 

 

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

 

 

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

 

 

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1from the lessee, the lessee shall have a legal right to claim a
2refund of that amount from the lessor. If, however, that
3amount is not refunded to the lessee for any reason, the lessor
4is liable to pay that amount to the Department. This paragraph
5is exempt from the provisions of Section 3-75.
6    (26) Beginning January 1, 2008, tangible personal property
7used in the construction or maintenance of a community water
8supply, as defined under Section 3.145 of the Environmental
9Protection Act, that is operated by a not-for-profit
10corporation that holds a valid water supply permit issued
11under Title IV of the Environmental Protection Act. This
12paragraph is exempt from the provisions of Section 3-75.
13    (27) Beginning January 1, 2010 and continuing through
14December 31, 2029, materials, parts, equipment, components,
15and furnishings incorporated into or upon an aircraft as part
16of the modification, refurbishment, completion, replacement,
17repair, or maintenance of the aircraft. This exemption
18includes consumable supplies used in the modification,
19refurbishment, completion, replacement, repair, and
20maintenance of aircraft. However, until January 1, 2024, this
21exemption excludes any materials, parts, equipment,
22components, and consumable supplies used in the modification,
23replacement, repair, and maintenance of aircraft engines or
24power plants, whether such engines or power plants are
25installed or uninstalled upon any such aircraft. "Consumable
26supplies" include, but are not limited to, adhesive, tape,

 

 

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1sandpaper, general purpose lubricants, cleaning solution,
2latex gloves, and protective films.
3    Beginning January 1, 2010 and continuing through December
431, 2023, this exemption applies only to the use of qualifying
5tangible personal property transferred incident to the
6modification, refurbishment, completion, replacement, repair,
7or maintenance of aircraft by persons who (i) hold an Air
8Agency Certificate and are empowered to operate an approved
9repair station by the Federal Aviation Administration, (ii)
10have a Class IV Rating, and (iii) conduct operations in
11accordance with Part 145 of the Federal Aviation Regulations.
12From January 1, 2024 through December 31, 2029, this exemption
13applies only to the use of qualifying tangible personal
14property by: (A) persons who modify, refurbish, complete,
15repair, replace, or maintain aircraft and who (i) hold an Air
16Agency Certificate and are empowered to operate an approved
17repair station by the Federal Aviation Administration, (ii)
18have a Class IV Rating, and (iii) conduct operations in
19accordance with Part 145 of the Federal Aviation Regulations;
20and (B) persons who engage in the modification, replacement,
21repair, and maintenance of aircraft engines or power plants
22without regard to whether or not those persons meet the
23qualifications of item (A).
24    The exemption does not include aircraft operated by a
25commercial air carrier providing scheduled passenger air
26service pursuant to authority issued under Part 121 or Part

 

 

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1129 of the Federal Aviation Regulations. The changes made to
2this paragraph (27) by Public Act 98-534 are declarative of
3existing law. It is the intent of the General Assembly that the
4exemption under this paragraph (27) applies continuously from
5January 1, 2010 through December 31, 2024; however, no claim
6for credit or refund is allowed for taxes paid as a result of
7the disallowance of this exemption on or after January 1, 2015
8and prior to February 5, 2020 (the effective date of Public Act
9101-629).
10    (28) Tangible personal property purchased by a
11public-facilities corporation, as described in Section
1211-65-10 of the Illinois Municipal Code, for purposes of
13constructing or furnishing a municipal convention hall, but
14only if the legal title to the municipal convention hall is
15transferred to the municipality without any further
16consideration by or on behalf of the municipality at the time
17of the completion of the municipal convention hall or upon the
18retirement or redemption of any bonds or other debt
19instruments issued by the public-facilities corporation in
20connection with the development of the municipal convention
21hall. This exemption includes existing public-facilities
22corporations as provided in Section 11-65-25 of the Illinois
23Municipal Code. This paragraph is exempt from the provisions
24of Section 3-75.
25    (29) Beginning January 1, 2017 and through December 31,
262026, menstrual pads, tampons, and menstrual cups.

 

 

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1    (30) Tangible personal property transferred to a purchaser
2who is exempt from the tax imposed by this Act by operation of
3federal law. This paragraph is exempt from the provisions of
4Section 3-75.
5    (31) Qualified tangible personal property used in the
6construction or operation of a data center that has been
7granted a certificate of exemption by the Department of
8Commerce and Economic Opportunity, whether that tangible
9personal property is purchased by the owner, operator, or
10tenant of the data center or by a contractor or subcontractor
11of the owner, operator, or tenant. Data centers that would
12have qualified for a certificate of exemption prior to January
131, 2020 had Public Act 101-31 been in effect, may apply for and
14obtain an exemption for subsequent purchases of computer
15equipment or enabling software purchased or leased to upgrade,
16supplement, or replace computer equipment or enabling software
17purchased or leased in the original investment that would have
18qualified.
19    The Department of Commerce and Economic Opportunity shall
20grant a certificate of exemption under this item (31) to
21qualified data centers as defined by Section 605-1025 of the
22Department of Commerce and Economic Opportunity Law of the
23Civil Administrative Code of Illinois.
24    For the purposes of this item (31):
25        "Data center" means a building or a series of
26    buildings rehabilitated or constructed to house working

 

 

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

 

 

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1    retailer must obtain from the purchaser a copy of the
2    certificate of eligibility issued by the Department of
3    Commerce and Economic Opportunity.
4    This item (31) is exempt from the provisions of Section
53-75.
6    (32) Beginning July 1, 2022, breast pumps, breast pump
7collection and storage supplies, and breast pump kits. This
8item (32) is exempt from the provisions of Section 3-75. As
9used in this item (32):
10        "Breast pump" means an electrically controlled or
11    manually controlled pump device designed or marketed to be
12    used to express milk from a human breast during lactation,
13    including the pump device and any battery, AC adapter, or
14    other power supply unit that is used to power the pump
15    device and is packaged and sold with the pump device at the
16    time of sale.
17        "Breast pump collection and storage supplies" means
18    items of tangible personal property designed or marketed
19    to be used in conjunction with a breast pump to collect
20    milk expressed from a human breast and to store collected
21    milk until it is ready for consumption.
22        "Breast pump collection and storage supplies"
23    includes, but is not limited to: breast shields and breast
24    shield connectors; breast pump tubes and tubing adapters;
25    breast pump valves and membranes; backflow protectors and
26    backflow protector adaptors; bottles and bottle caps

 

 

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1    specific to the operation of the breast pump; and breast
2    milk storage bags.
3        "Breast pump collection and storage supplies" does not
4    include: (1) bottles and bottle caps not specific to the
5    operation of the breast pump; (2) breast pump travel bags
6    and other similar carrying accessories, including ice
7    packs, labels, and other similar products; (3) breast pump
8    cleaning supplies; (4) nursing bras, bra pads, breast
9    shells, and other similar products; and (5) creams,
10    ointments, and other similar products that relieve
11    breastfeeding-related symptoms or conditions of the
12    breasts or nipples, unless sold as part of a breast pump
13    kit that is pre-packaged by the breast pump manufacturer
14    or distributor.
15        "Breast pump kit" means a kit that: (1) contains no
16    more than a breast pump, breast pump collection and
17    storage supplies, a rechargeable battery for operating the
18    breast pump, a breastmilk cooler, bottle stands, ice
19    packs, and a breast pump carrying case; and (2) is
20    pre-packaged as a breast pump kit by the breast pump
21    manufacturer or distributor.
22    (33) Tangible personal property sold by or on behalf of
23the State Treasurer pursuant to the Revised Uniform Unclaimed
24Property Act. This item (33) is exempt from the provisions of
25Section 3-75.
26    (34) Beginning on January 1, 2024, tangible personal

 

 

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1property purchased by an active duty member of the armed
2forces of the United States who presents valid military
3identification and purchases the property using a form of
4payment where the federal government is the payor. The member
5of the armed forces must complete, at the point of sale, a form
6prescribed by the Department of Revenue documenting that the
7transaction is eligible for the exemption under this
8paragraph. Retailers must keep the form as documentation of
9the exemption in their records for a period of not less than 6
10years. "Armed forces of the United States" means the United
11States Army, Navy, Air Force, Marine Corps, or Coast Guard.
12This paragraph is exempt from the provisions of Section 3-75.
13    (35) Use by a lessee of the following leased tangible
14personal property:
15        (1) software transferred subject to a license that
16    meets the following requirements:
17            (A) it is evidenced by a written agreement signed
18        by the licensor and the customer;
19                (i) an electronic agreement in which the
20            customer accepts the license by means of an
21            electronic signature that is verifiable and can be
22            authenticated and is attached to or made part of
23            the license will comply with this requirement;
24                (ii) a license agreement in which the customer
25            electronically accepts the terms by clicking "I
26            agree" does not comply with this requirement;

 

 

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1            (B) it restricts the customer's duplication and
2        use of the software;
3            (C) it prohibits the customer from licensing,
4        sublicensing, or transferring the software to a third
5        party (except to a related party) without the
6        permission and continued control of the licensor;
7            (D) the licensor has a policy of providing another
8        copy at minimal or no charge if the customer loses or
9        damages the software, or of permitting the licensee to
10        make and keep an archival copy, and such policy is
11        either stated in the license agreement, supported by
12        the licensor's books and records, or supported by a
13        notarized statement made under penalties of perjury by
14        the licensor; and
15            (E) the customer must destroy or return all copies
16        of the software to the licensor at the end of the
17        license period; this provision is deemed to be met, in
18        the case of a perpetual license, without being set
19        forth in the license agreement; and
20        (2) property that is subject to a tax on lease
21    receipts imposed by a home rule unit of local government
22    if the ordinance imposing that tax was adopted prior to
23    January 1, 2023.
24(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
25Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
2675-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,

 

 

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1Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
2eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
3revised 12-12-23.)
 
4    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
5    Sec. 3-10. Rate of tax. Unless otherwise provided in this
6Section, the tax imposed by this Act is at the rate of 6.25% of
7the selling price of tangible personal property transferred,
8including, on and after January 1, 2025, transferred by lease,
9as an incident to the sale of service, but, for the purpose of
10computing this tax, in no event shall the selling price be less
11than the cost price of the property to the serviceman.
12    Beginning on July 1, 2000 and through December 31, 2000,
13with respect to motor fuel, as defined in Section 1.1 of the
14Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
15the Use Tax Act, the tax is imposed at the rate of 1.25%.
16    With respect to gasohol, as defined in the Use Tax Act, the
17tax imposed by this Act applies to (i) 70% of the selling price
18of property transferred as an incident to the sale of service
19on or after January 1, 1990, and before July 1, 2003, (ii) 80%
20of the selling price of property transferred as an incident to
21the sale of service on or after July 1, 2003 and on or before
22July 1, 2017, (iii) 100% of the selling price of property
23transferred as an incident to the sale of service after July 1,
242017 and before January 1, 2024, (iv) 90% of the selling price
25of property transferred as an incident to the sale of service

 

 

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1on or after January 1, 2024 and on or before December 31, 2028,
2and (v) 100% of the selling price of property transferred as an
3incident to the sale of service after December 31, 2028. If, at
4any time, however, the tax under this Act on sales of gasohol,
5as defined in the Use Tax Act, is imposed at the rate of 1.25%,
6then the tax imposed by this Act applies to 100% of the
7proceeds of sales of gasohol made during that time.
8    With respect to mid-range ethanol blends, as defined in
9Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
10applies to (i) 80% of the selling price of property
11transferred as an incident to the sale of service on or after
12January 1, 2024 and on or before December 31, 2028 and (ii)
13100% of the selling price of property transferred as an
14incident to the sale of service after December 31, 2028. If, at
15any time, however, the tax under this Act on sales of mid-range
16ethanol blends is imposed at the rate of 1.25%, then the tax
17imposed by this Act applies to 100% of the selling price of
18mid-range ethanol blends transferred as an incident to the
19sale of service during that time.
20    With respect to majority blended ethanol fuel, as defined
21in the Use Tax Act, the tax imposed by this Act does not apply
22to the selling price of property transferred as an incident to
23the sale of service on or after July 1, 2003 and on or before
24December 31, 2028 but applies to 100% of the selling price
25thereafter.
26    With respect to biodiesel blends, as defined in the Use

 

 

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1Tax Act, with no less than 1% and no more than 10% biodiesel,
2the tax imposed by this Act applies to (i) 80% of the selling
3price of property transferred as an incident to the sale of
4service on or after July 1, 2003 and on or before December 31,
52018 and (ii) 100% of the proceeds of the selling price after
6December 31, 2018 and before January 1, 2024. On and after
7January 1, 2024 and on or before December 31, 2030, the
8taxation of biodiesel, renewable diesel, and biodiesel blends
9shall be as provided in Section 3-5.1 of the Use Tax Act. If,
10at any time, however, the tax under this Act on sales of
11biodiesel blends, as defined in the Use Tax Act, with no less
12than 1% and no more than 10% biodiesel is imposed at the rate
13of 1.25%, then the tax imposed by this Act applies to 100% of
14the proceeds of sales of biodiesel blends with no less than 1%
15and no more than 10% biodiesel made during that time.
16    With respect to biodiesel, as defined in the Use Tax Act,
17and biodiesel blends, as defined in the Use Tax Act, with more
18than 10% but no more than 99% biodiesel, the tax imposed by
19this Act does not apply to the proceeds of the selling price of
20property transferred as an incident to the sale of service on
21or after July 1, 2003 and on or before December 31, 2023. On
22and after January 1, 2024 and on or before December 31, 2030,
23the taxation of biodiesel, renewable diesel, and biodiesel
24blends shall be as provided in Section 3-5.1 of the Use Tax
25Act.
26    At the election of any registered serviceman made for each

 

 

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

 

 

10300HB4951sam002- 425 -LRB103 38094 HLH 74177 a

1    Beginning on July 1, 2022 and until July 1, 2023, the tax
2shall be imposed at the rate of 0% on food prepared for
3immediate consumption and transferred incident to a sale of
4service subject to this Act or the Service Occupation Tax Act
5by an entity licensed under the Hospital Licensing Act, the
6Nursing Home Care Act, the Assisted Living and Shared Housing
7Act, the ID/DD Community Care Act, the MC/DD Act, the
8Specialized Mental Health Rehabilitation Act of 2013, or the
9Child Care Act of 1969, or an entity that holds a permit issued
10pursuant to the Life Care Facilities Act. Beginning on July 1,
112022 and until July 1, 2023, the tax shall also be imposed at
12the rate of 0% on food for human consumption that is to be
13consumed off the premises where it is sold (other than
14alcoholic beverages, food consisting of or infused with adult
15use cannabis, soft drinks, and food that has been prepared for
16immediate consumption and is not otherwise included in this
17paragraph).
18    The tax shall also be imposed at the rate of 1% on
19prescription and nonprescription medicines, drugs, medical
20appliances, products classified as Class III medical devices
21by the United States Food and Drug Administration that are
22used for cancer treatment pursuant to a prescription, as well
23as any accessories and components related to those devices,
24modifications to a motor vehicle for the purpose of rendering
25it usable by a person with a disability, and insulin, blood
26sugar testing materials, syringes, and needles used by human

 

 

10300HB4951sam002- 426 -LRB103 38094 HLH 74177 a

1diabetics. For the purposes of this Section, until September
21, 2009: the term "soft drinks" means any complete, finished,
3ready-to-use, non-alcoholic drink, whether carbonated or not,
4including, but not limited to, soda water, cola, fruit juice,
5vegetable juice, carbonated water, and all other preparations
6commonly known as soft drinks of whatever kind or description
7that are contained in any closed or sealed bottle, can,
8carton, or container, regardless of size; but "soft drinks"
9does not include coffee, tea, non-carbonated water, infant
10formula, milk or milk products as defined in the Grade A
11Pasteurized Milk and Milk Products Act, or drinks containing
1250% or more natural fruit or vegetable juice.
13    Notwithstanding any other provisions of this Act,
14beginning September 1, 2009, "soft drinks" means non-alcoholic
15beverages that contain natural or artificial sweeteners. "Soft
16drinks" does not include beverages that contain milk or milk
17products, soy, rice or similar milk substitutes, or greater
18than 50% of vegetable or fruit juice by volume.
19    Until August 1, 2009, and notwithstanding any other
20provisions of this Act, "food for human consumption that is to
21be consumed off the premises where it is sold" includes all
22food sold through a vending machine, except soft drinks and
23food products that are dispensed hot from a vending machine,
24regardless of the location of the vending machine. Beginning
25August 1, 2009, and notwithstanding any other provisions of
26this Act, "food for human consumption that is to be consumed

 

 

10300HB4951sam002- 427 -LRB103 38094 HLH 74177 a

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

 

 

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1        (A) a "Drug Facts" panel; or
2        (B) a statement of the "active ingredient(s)" with a
3    list of those ingredients contained in the compound,
4    substance or preparation.
5    Beginning on January 1, 2014 (the effective date of Public
6Act 98-122), "prescription and nonprescription medicines and
7drugs" includes medical cannabis purchased from a registered
8dispensing organization under the Compassionate Use of Medical
9Cannabis Program Act.
10    As used in this Section, "adult use cannabis" means
11cannabis subject to tax under the Cannabis Cultivation
12Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
13and does not include cannabis subject to tax under the
14Compassionate Use of Medical Cannabis Program Act.
15    If the property that is acquired from a serviceman is
16acquired outside Illinois and used outside Illinois before
17being brought to Illinois for use here and is taxable under
18this Act, the "selling price" on which the tax is computed
19shall be reduced by an amount that represents a reasonable
20allowance for depreciation for the period of prior
21out-of-state use. No depreciation is allowed in cases where
22the tax under this Act is imposed on lease receipts.
23(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
24102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700,
25Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23;
26103-154, eff. 6-30-23.)
 

 

 

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1    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
2    Sec. 9. Each serviceman required or authorized to collect
3the tax herein imposed shall pay to the Department the amount
4of such tax (except as otherwise provided) at the time when he
5is required to file his return for the period during which such
6tax was collected, less a discount of 2.1% prior to January 1,
71990 and 1.75% on and after January 1, 1990, or $5 per calendar
8year, whichever is greater, which is allowed to reimburse the
9serviceman for expenses incurred in collecting the tax,
10keeping records, preparing and filing returns, remitting the
11tax and supplying data to the Department on request. When
12determining the discount allowed under this Section,
13servicemen shall include the amount of tax that would have
14been due at the 1% rate but for the 0% rate imposed under this
15amendatory Act of the 102nd General Assembly. The discount
16under this Section is not allowed for the 1.25% portion of
17taxes paid on aviation fuel that is subject to the revenue use
18requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
19discount allowed under this Section is allowed only for
20returns that are filed in the manner required by this Act. The
21Department may disallow the discount for servicemen whose
22certificate of registration is revoked at the time the return
23is filed, but only if the Department's decision to revoke the
24certificate of registration has become final. A serviceman
25need not remit that part of any tax collected by him to the

 

 

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1extent that he is required to pay and does pay the tax imposed
2by the Service Occupation Tax Act with respect to his sale of
3service involving the incidental transfer by him of the same
4property.
5    Except as provided hereinafter in this Section, on or
6before the twentieth day of each calendar month, such
7serviceman shall file a return for the preceding calendar
8month in accordance with reasonable Rules and Regulations to
9be promulgated by the Department. Such return shall be filed
10on a form prescribed by the Department and shall contain such
11information as the Department may reasonably require. The
12return shall include the gross receipts which were received
13during the preceding calendar month or quarter on the
14following items upon which tax would have been due but for the
150% rate imposed under this amendatory Act of the 102nd General
16Assembly: (i) food for human consumption that is to be
17consumed off the premises where it is sold (other than
18alcoholic beverages, food consisting of or infused with adult
19use cannabis, soft drinks, and food that has been prepared for
20immediate consumption); and (ii) food prepared for immediate
21consumption and transferred incident to a sale of service
22subject to this Act or the Service Occupation Tax Act by an
23entity licensed under the Hospital Licensing Act, the Nursing
24Home Care Act, the Assisted Living and Shared Housing Act, the
25ID/DD Community Care Act, the MC/DD Act, the Specialized
26Mental Health Rehabilitation Act of 2013, or the Child Care

 

 

10300HB4951sam002- 431 -LRB103 38094 HLH 74177 a

1Act of 1969, or an entity that holds a permit issued pursuant
2to the Life Care Facilities Act. The return shall also include
3the amount of tax that would have been due on the items listed
4in the previous sentence but for the 0% rate imposed under this
5amendatory Act of the 102nd General Assembly.
6    In the case of leases, except as otherwise provided in
7this Act, the lessor, in collecting the tax, may collect for
8each tax return period, only the tax applicable to that part of
9the selling price actually received during such tax return
10period.
11    On and after January 1, 2018, with respect to servicemen
12whose annual gross receipts average $20,000 or more, all
13returns required to be filed pursuant to this Act shall be
14filed electronically. Servicemen who demonstrate that they do
15not have access to the Internet or demonstrate hardship in
16filing electronically may petition the Department to waive the
17electronic filing requirement.
18    The Department may require returns to be filed on a
19quarterly basis. If so required, a return for each calendar
20quarter shall be filed on or before the twentieth day of the
21calendar month following the end of such calendar quarter. The
22taxpayer shall also file a return with the Department for each
23of the first two months of each calendar quarter, on or before
24the twentieth day of the following calendar month, stating:
25        1. The name of the seller;
26        2. The address of the principal place of business from

 

 

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

 

 

10300HB4951sam002- 433 -LRB103 38094 HLH 74177 a

1    If a taxpayer fails to sign a return within 30 days after
2the proper notice and demand for signature by the Department,
3the return shall be considered valid and any amount shown to be
4due on the return shall be deemed assessed.
5    Notwithstanding any other provision of this Act to the
6contrary, servicemen subject to tax on cannabis shall file all
7cannabis tax returns and shall make all cannabis tax payments
8by electronic means in the manner and form required by the
9Department.
10    Beginning October 1, 1993, a taxpayer who has an average
11monthly tax liability of $150,000 or more shall make all
12payments required by rules of the Department by electronic
13funds transfer. Beginning October 1, 1994, a taxpayer who has
14an average monthly tax liability of $100,000 or more shall
15make all payments required by rules of the Department by
16electronic funds transfer. Beginning October 1, 1995, a
17taxpayer who has an average monthly tax liability of $50,000
18or more shall make all payments required by rules of the
19Department by electronic funds transfer. Beginning October 1,
202000, a taxpayer who has an annual tax liability of $200,000 or
21more shall make all payments required by rules of the
22Department by electronic funds transfer. The term "annual tax
23liability" shall be the sum of the taxpayer's liabilities
24under this Act, and under all other State and local occupation
25and use tax laws administered by the Department, for the
26immediately preceding calendar year. The term "average monthly

 

 

10300HB4951sam002- 434 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 435 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 436 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 437 -LRB103 38094 HLH 74177 a

1    Where the serviceman has more than one business registered
2with the Department under separate registration hereunder,
3such serviceman shall not file each return that is due as a
4single return covering all such registered businesses, but
5shall file separate returns for each such registered business.
6    Beginning January 1, 1990, each month the Department shall
7pay into the State and Local Tax Reform Fund, a special fund in
8the State Treasury, the net revenue realized for the preceding
9month from the 1% tax imposed under this Act.
10    Beginning January 1, 1990, each month the Department shall
11pay into the State and Local Sales Tax Reform Fund 20% of the
12net revenue realized for the preceding month from the 6.25%
13general rate on transfers of tangible personal property, other
14than (i) tangible personal property which is purchased outside
15Illinois at retail from a retailer and which is titled or
16registered by an agency of this State's government and (ii)
17aviation fuel sold on or after December 1, 2019. This
18exception for aviation fuel only applies for so long as the
19revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2047133 are binding on the State.
21    For aviation fuel sold on or after December 1, 2019, each
22month the Department shall pay into the State Aviation Program
23Fund 20% of the net revenue realized for the preceding month
24from the 6.25% general rate on the selling price of aviation
25fuel, less an amount estimated by the Department to be
26required for refunds of the 20% portion of the tax on aviation

 

 

10300HB4951sam002- 438 -LRB103 38094 HLH 74177 a

1fuel under this Act, which amount shall be deposited into the
2Aviation Fuel Sales Tax Refund Fund. The Department shall only
3pay moneys into the State Aviation Program Fund and the
4Aviation Fuel Sales Tax Refund Fund under this Act for so long
5as the revenue use requirements of 49 U.S.C. 47107(b) and 49
6U.S.C. 47133 are binding on the State.
7    Beginning August 1, 2000, each month the Department shall
8pay into the State and Local Sales Tax Reform Fund 100% of the
9net revenue realized for the preceding month from the 1.25%
10rate on the selling price of motor fuel and gasohol.
11    Beginning October 1, 2009, each month the Department shall
12pay into the Capital Projects Fund an amount that is equal to
13an amount estimated by the Department to represent 80% of the
14net revenue realized for the preceding month from the sale of
15candy, grooming and hygiene products, and soft drinks that had
16been taxed at a rate of 1% prior to September 1, 2009 but that
17are now taxed at 6.25%.
18    Beginning July 1, 2013, each month the Department shall
19pay into the Underground Storage Tank Fund from the proceeds
20collected under this Act, the Use Tax Act, the Service
21Occupation Tax Act, and the Retailers' Occupation Tax Act an
22amount equal to the average monthly deficit in the Underground
23Storage Tank Fund during the prior year, as certified annually
24by the Illinois Environmental Protection Agency, but the total
25payment into the Underground Storage Tank Fund under this Act,
26the Use Tax Act, the Service Occupation Tax Act, and the

 

 

10300HB4951sam002- 439 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 440 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 441 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 442 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 443 -LRB103 38094 HLH 74177 a

12006113,000,000
22007119,000,000
32008126,000,000
42009132,000,000
52010139,000,000
62011146,000,000
72012153,000,000
82013161,000,000
92014170,000,000
102015179,000,000
112016189,000,000
122017199,000,000
132018210,000,000
142019221,000,000
152020233,000,000
162021300,000,000
172022300,000,000
182023300,000,000
192024 300,000,000
202025 300,000,000
212026 300,000,000
222027 375,000,000
232028 375,000,000
242029 375,000,000
252030 375,000,000
262031 375,000,000

 

 

10300HB4951sam002- 444 -LRB103 38094 HLH 74177 a

12032 375,000,000
22033 375,000,000
32034375,000,000
42035375,000,000
52036450,000,000
6and
7each fiscal year
8thereafter that bonds
9are outstanding under
10Section 13.2 of the
11Metropolitan Pier and
12Exposition Authority Act,
13but not after fiscal year 2060.
14    Beginning July 20, 1993 and in each month of each fiscal
15year thereafter, one-eighth of the amount requested in the
16certificate of the Chairman of the Metropolitan Pier and
17Exposition Authority for that fiscal year, less the amount
18deposited into the McCormick Place Expansion Project Fund by
19the State Treasurer in the respective month under subsection
20(g) of Section 13 of the Metropolitan Pier and Exposition
21Authority Act, plus cumulative deficiencies in the deposits
22required under this Section for previous months and years,
23shall be deposited into the McCormick Place Expansion Project
24Fund, until the full amount requested for the fiscal year, but
25not in excess of the amount specified above as "Total
26Deposit", has been deposited.

 

 

10300HB4951sam002- 445 -LRB103 38094 HLH 74177 a

1    Subject to payment of amounts into the Capital Projects
2Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
3and the McCormick Place Expansion Project Fund pursuant to the
4preceding paragraphs or in any amendments thereto hereafter
5enacted, for aviation fuel sold on or after December 1, 2019,
6the Department shall each month deposit into the Aviation Fuel
7Sales Tax Refund Fund an amount estimated by the Department to
8be required for refunds of the 80% portion of the tax on
9aviation fuel under this Act. The Department shall only
10deposit moneys into the Aviation Fuel Sales Tax Refund Fund
11under this paragraph for so long as the revenue use
12requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
13binding on the State.
14    Subject to payment of amounts into the Build Illinois Fund
15and the McCormick Place Expansion Project Fund pursuant to the
16preceding paragraphs or in any amendments thereto hereafter
17enacted, beginning July 1, 1993 and ending on September 30,
182013, the Department shall each month pay into the Illinois
19Tax Increment Fund 0.27% of 80% of the net revenue realized for
20the preceding month from the 6.25% general rate on the selling
21price of tangible personal property.
22    Subject to payment of amounts into the Build Illinois
23Fund, the McCormick Place Expansion Project Fund, the Illinois
24Tax Increment Fund, pursuant to the preceding paragraphs or in
25any amendments to this Section hereafter enacted, beginning on
26the first day of the first calendar month to occur on or after

 

 

10300HB4951sam002- 446 -LRB103 38094 HLH 74177 a

1August 26, 2014 (the effective date of Public Act 98-1098),
2each month, from the collections made under Section 9 of the
3Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of
4the Service Occupation Tax Act, and Section 3 of the
5Retailers' Occupation Tax Act, the Department shall pay into
6the Tax Compliance and Administration Fund, to be used,
7subject to appropriation, to fund additional auditors and
8compliance personnel at the Department of Revenue, an amount
9equal to 1/12 of 5% of 80% of the cash receipts collected
10during the preceding fiscal year by the Audit Bureau of the
11Department under the Use Tax Act, the Service Use Tax Act, the
12Service Occupation Tax Act, the Retailers' Occupation Tax Act,
13and associated local occupation and use taxes administered by
14the Department.
15    Subject to payments of amounts into the Build Illinois
16Fund, the McCormick Place Expansion Project Fund, the Illinois
17Tax Increment Fund, and the Tax Compliance and Administration
18Fund as provided in this Section, beginning on July 1, 2018 the
19Department shall pay each month into the Downstate Public
20Transportation Fund the moneys required to be so paid under
21Section 2-3 of the Downstate Public Transportation Act.
22    Subject to successful execution and delivery of a
23public-private agreement between the public agency and private
24entity and completion of the civic build, beginning on July 1,
252023, of the remainder of the moneys received by the
26Department under the Use Tax Act, the Service Use Tax Act, the

 

 

10300HB4951sam002- 447 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 448 -LRB103 38094 HLH 74177 a

1        2033....................................$331,200,000
2        2034....................................$341,200,000
3        2035....................................$351,400,000
4        2036....................................$361,900,000
5        2037....................................$372,800,000
6        2038....................................$384,000,000
7        2039....................................$395,500,000
8        2040....................................$407,400,000
9        2041....................................$419,600,000
10        2042....................................$432,200,000
11        2043....................................$445,100,000
12    Beginning July 1, 2021 and until July 1, 2022, subject to
13the payment of amounts into the State and Local Sales Tax
14Reform Fund, the Build Illinois Fund, the McCormick Place
15Expansion Project Fund, the Energy Infrastructure Fund, and
16the Tax Compliance and Administration Fund as provided in this
17Section, the Department shall pay each month into the Road
18Fund the amount estimated to represent 16% of the net revenue
19realized from the taxes imposed on motor fuel and gasohol.
20Beginning July 1, 2022 and until July 1, 2023, subject to the
21payment of amounts into the State and Local Sales Tax Reform
22Fund, the Build Illinois Fund, the McCormick Place Expansion
23Project Fund, the Illinois Tax Increment Fund, and the Tax
24Compliance and Administration Fund as provided in this
25Section, the Department shall pay each month into the Road
26Fund the amount estimated to represent 32% of the net revenue

 

 

10300HB4951sam002- 449 -LRB103 38094 HLH 74177 a

1realized from the taxes imposed on motor fuel and gasohol.
2Beginning July 1, 2023 and until July 1, 2024, subject to the
3payment of amounts into the State and Local Sales Tax Reform
4Fund, the Build Illinois Fund, the McCormick Place Expansion
5Project Fund, the Illinois Tax Increment Fund, and the Tax
6Compliance and Administration Fund as provided in this
7Section, the Department shall pay each month into the Road
8Fund the amount estimated to represent 48% of the net revenue
9realized from the taxes imposed on motor fuel and gasohol.
10Beginning July 1, 2024 and until July 1, 2025, subject to the
11payment of amounts into the State and Local Sales Tax Reform
12Fund, the Build Illinois Fund, the McCormick Place Expansion
13Project Fund, the Illinois Tax Increment Fund, and the Tax
14Compliance and Administration Fund as provided in this
15Section, the Department shall pay each month into the Road
16Fund the amount estimated to represent 64% of the net revenue
17realized from the taxes imposed on motor fuel and gasohol.
18Beginning on July 1, 2025, subject to the payment of amounts
19into the State and Local Sales Tax Reform Fund, the Build
20Illinois Fund, the McCormick Place Expansion Project Fund, the
21Illinois Tax Increment Fund, and the Tax Compliance and
22Administration Fund as provided in this Section, the
23Department shall pay each month into the Road Fund the amount
24estimated to represent 80% of the net revenue realized from
25the taxes imposed on motor fuel and gasohol. As used in this
26paragraph "motor fuel" has the meaning given to that term in

 

 

10300HB4951sam002- 450 -LRB103 38094 HLH 74177 a

1Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
2meaning given to that term in Section 3-40 of the Use Tax Act.
3    Of the remainder of the moneys received by the Department
4pursuant to this Act, 75% thereof shall be paid into the
5General Revenue Fund of the State Treasury and 25% shall be
6reserved in a special account and used only for the transfer to
7the Common School Fund as part of the monthly transfer from the
8General Revenue Fund in accordance with Section 8a of the
9State Finance Act.
10    As soon as possible after the first day of each month, upon
11certification of the Department of Revenue, the Comptroller
12shall order transferred and the Treasurer shall transfer from
13the General Revenue Fund to the Motor Fuel Tax Fund an amount
14equal to 1.7% of 80% of the net revenue realized under this Act
15for the second preceding month. Beginning April 1, 2000, this
16transfer is no longer required and shall not be made.
17    Net revenue realized for a month shall be the revenue
18collected by the State pursuant to this Act, less the amount
19paid out during that month as refunds to taxpayers for
20overpayment of liability.
21(Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)
 
22    Section 75-15. The Service Occupation Tax Act is amended
23by changing Sections 2, 3, 3-5, and 3-10 and by adding Section
241.05 as follows:
 

 

 

10300HB4951sam002- 451 -LRB103 38094 HLH 74177 a

1    (35 ILCS 115/1.05 new)
2    Sec. 1.05. Legislative intent; leases. It is the intent of
3the General Assembly in enacting this amendatory Act of the
4103rd General Assembly to apply the tax imposed under this
5Act, except as otherwise provided in this Act, to persons
6engaged in the business of making sales of service (referred
7to as "servicemen") on all tangible personal property, other
8than motor vehicles, watercraft, aircraft, and semitrailers,
9as defined in Section 1-187 of the Illinois Vehicle Code, that
10are required to be registered with an agency of this State,
11transferred by lease, as an incident of a sale of service, for
12leases in effect, entered into, or renewed on or after January
131, 2025.
 
14    (35 ILCS 115/2)  (from Ch. 120, par. 439.102)
15    Sec. 2. In this Act:
16    "Transfer" means any transfer of the title to property or
17of the ownership of property whether or not the transferor
18retains title as security for the payment of amounts due him
19from the transferee. On and after January 1, 2025, "transfer"
20also means any transfer of the possession or control of, the
21right to possess or control, or a license to use, but not title
22to, tangible personal property.
23    "Lease" means a transfer of the possession or control of,
24the right to possess or control, or a license to use, but not
25title to, tangible personal property for a fixed or

 

 

10300HB4951sam002- 452 -LRB103 38094 HLH 74177 a

1indeterminate term for consideration, regardless of the name
2by which the transaction is called. "Lease" does not include a
3lease entered into merely as a security agreement that does
4not involve a transfer of possession or control from the
5lessor to the lessee.
6    On and after January 1, 2025, the term "sale", when used in
7this Act with respect to tangible personal property, includes
8a lease.
9    "Cost Price" means the consideration paid by the
10serviceman for a purchase, including, on and after January 1,
112025, a lease, valued in money, whether paid in money or
12otherwise, including cash, credits and services, and shall be
13determined without any deduction on account of the supplier's
14cost of the property sold or on account of any other expense
15incurred by the supplier. When a serviceman contracts out part
16or all of the services required in his sale of service, it
17shall be presumed that the cost price to the serviceman of the
18property transferred to him by his or her subcontractor is
19equal to 50% of the subcontractor's charges to the serviceman
20in the absence of proof of the consideration paid by the
21subcontractor for the purchase of such property.
22    "Department" means the Department of Revenue.
23    "Person" means any natural individual, firm, partnership,
24association, joint stock company, joint venture, public or
25private corporation, limited liability company, and any
26receiver, executor, trustee, guardian or other representative

 

 

10300HB4951sam002- 453 -LRB103 38094 HLH 74177 a

1appointed by order of any court.
2    "Sale of Service" means any transaction except:
3    (a) A retail sale of tangible personal property taxable
4under the Retailers' Occupation Tax Act or under the Use Tax
5Act.
6    (b) A sale of tangible personal property for the purpose
7of resale made in compliance with Section 2c of the Retailers'
8Occupation Tax Act.
9    (c) Except as hereinafter provided, a sale or transfer of
10tangible personal property as an incident to the rendering of
11service for or by any governmental body or for or by any
12corporation, society, association, foundation or institution
13organized and operated exclusively for charitable, religious
14or educational purposes or any not-for-profit corporation,
15society, association, foundation, institution or organization
16which has no compensated officers or employees and which is
17organized and operated primarily for the recreation of persons
1855 years of age or older. A limited liability company may
19qualify for the exemption under this paragraph only if the
20limited liability company is organized and operated
21exclusively for educational purposes.
22    (d) (Blank).
23    (d-1) A sale or transfer of tangible personal property as
24an incident to the rendering of service for owners or ,
25lessors, lessees, or shippers of tangible personal property
26which is utilized by interstate carriers for hire for use as

 

 

10300HB4951sam002- 454 -LRB103 38094 HLH 74177 a

1rolling stock moving in interstate commerce, and equipment
2operated by a telecommunications provider, licensed as a
3common carrier by the Federal Communications Commission, which
4is permanently installed in or affixed to aircraft moving in
5interstate commerce.
6    (d-1.1) On and after July 1, 2003 and through June 30,
72004, a sale or transfer of a motor vehicle of the second
8division with a gross vehicle weight in excess of 8,000 pounds
9as an incident to the rendering of service if that motor
10vehicle is subject to the commercial distribution fee imposed
11under Section 3-815.1 of the Illinois Vehicle Code. Beginning
12on July 1, 2004 and through June 30, 2005, the use in this
13State of motor vehicles of the second division: (i) with a
14gross vehicle weight rating in excess of 8,000 pounds; (ii)
15that are subject to the commercial distribution fee imposed
16under Section 3-815.1 of the Illinois Vehicle Code; and (iii)
17that are primarily used for commercial purposes. Through June
1830, 2005, this exemption applies to repair and replacement
19parts added after the initial purchase of such a motor vehicle
20if that motor vehicle is used in a manner that would qualify
21for the rolling stock exemption otherwise provided for in this
22Act. For purposes of this paragraph, "used for commercial
23purposes" means the transportation of persons or property in
24furtherance of any commercial or industrial enterprise whether
25for-hire or not.
26    (d-2) The repairing, reconditioning or remodeling, for a

 

 

10300HB4951sam002- 455 -LRB103 38094 HLH 74177 a

1common carrier by rail, of tangible personal property which
2belongs to such carrier for hire, and as to which such carrier
3receives the physical possession of the repaired,
4reconditioned or remodeled item of tangible personal property
5in Illinois, and which such carrier transports, or shares with
6another common carrier in the transportation of such property,
7out of Illinois on a standard uniform bill of lading showing
8the person who repaired, reconditioned or remodeled the
9property as the shipper or consignor of such property to a
10destination outside Illinois, for use outside Illinois.
11    (d-3) A sale or transfer of tangible personal property
12which is produced by the seller thereof on special order in
13such a way as to have made the applicable tax the Service
14Occupation Tax or the Service Use Tax, rather than the
15Retailers' Occupation Tax or the Use Tax, for an interstate
16carrier by rail which receives the physical possession of such
17property in Illinois, and which transports such property, or
18shares with another common carrier in the transportation of
19such property, out of Illinois on a standard uniform bill of
20lading showing the seller of the property as the shipper or
21consignor of such property to a destination outside Illinois,
22for use outside Illinois.
23    (d-4) Until January 1, 1997, a sale, by a registered
24serviceman paying tax under this Act to the Department, of
25special order printed materials delivered outside Illinois and
26which are not returned to this State, if delivery is made by

 

 

10300HB4951sam002- 456 -LRB103 38094 HLH 74177 a

1the seller or agent of the seller, including an agent who
2causes the product to be delivered outside Illinois by a
3common carrier or the U.S. postal service.
4    (e) A sale or transfer of machinery and equipment used
5primarily in the process of the manufacturing or assembling,
6either in an existing, an expanded or a new manufacturing
7facility, of tangible personal property for wholesale or
8retail sale or lease, whether such sale or lease is made
9directly by the manufacturer or by some other person, whether
10the materials used in the process are owned by the
11manufacturer or some other person, or whether such sale or
12lease is made apart from or as an incident to the seller's
13engaging in a service occupation and the applicable tax is a
14Service Occupation Tax or Service Use Tax, rather than
15Retailers' Occupation Tax or Use Tax. The exemption provided
16by this paragraph (e) includes production related tangible
17personal property, as defined in Section 3-50 of the Use Tax
18Act, purchased on or after July 1, 2019. The exemption
19provided by this paragraph (e) does not include machinery and
20equipment used in (i) the generation of electricity for
21wholesale or retail sale; (ii) the generation or treatment of
22natural or artificial gas for wholesale or retail sale that is
23delivered to customers through pipes, pipelines, or mains; or
24(iii) the treatment of water for wholesale or retail sale that
25is delivered to customers through pipes, pipelines, or mains.
26The provisions of Public Act 98-583 are declaratory of

 

 

10300HB4951sam002- 457 -LRB103 38094 HLH 74177 a

1existing law as to the meaning and scope of this exemption. The
2exemption under this subsection (e) is exempt from the
3provisions of Section 3-75.
4    (f) Until July 1, 2003, the sale or transfer of
5distillation machinery and equipment, sold as a unit or kit
6and assembled or installed by the retailer, which machinery
7and equipment is certified by the user to be used only for the
8production of ethyl alcohol that will be used for consumption
9as motor fuel or as a component of motor fuel for the personal
10use of such user and not subject to sale or resale.
11    (g) At the election of any serviceman not required to be
12otherwise registered as a retailer under Section 2a of the
13Retailers' Occupation Tax Act, made for each fiscal year sales
14of service in which the aggregate annual cost price of
15tangible personal property transferred as an incident to the
16sales of service is less than 35% (75% in the case of
17servicemen transferring prescription drugs or servicemen
18engaged in graphic arts production) of the aggregate annual
19total gross receipts from all sales of service. The purchase
20of such tangible personal property by the serviceman shall be
21subject to tax under the Retailers' Occupation Tax Act and the
22Use Tax Act. However, if a primary serviceman who has made the
23election described in this paragraph subcontracts service work
24to a secondary serviceman who has also made the election
25described in this paragraph, the primary serviceman does not
26incur a Use Tax liability if the secondary serviceman (i) has

 

 

10300HB4951sam002- 458 -LRB103 38094 HLH 74177 a

1paid or will pay Use Tax on his or her cost price of any
2tangible personal property transferred to the primary
3serviceman and (ii) certifies that fact in writing to the
4primary serviceman.
5    Tangible personal property transferred incident to the
6completion of a maintenance agreement is exempt from the tax
7imposed pursuant to this Act.
8    Exemption (e) also includes machinery and equipment used
9in the general maintenance or repair of such exempt machinery
10and equipment or for in-house manufacture of exempt machinery
11and equipment. On and after July 1, 2017, exemption (e) also
12includes graphic arts machinery and equipment, as defined in
13paragraph (5) of Section 3-5. The machinery and equipment
14exemption does not include machinery and equipment used in (i)
15the generation of electricity for wholesale or retail sale;
16(ii) the generation or treatment of natural or artificial gas
17for wholesale or retail sale that is delivered to customers
18through pipes, pipelines, or mains; or (iii) the treatment of
19water for wholesale or retail sale that is delivered to
20customers through pipes, pipelines, or mains. The provisions
21of Public Act 98-583 are declaratory of existing law as to the
22meaning and scope of this exemption. For the purposes of
23exemption (e), each of these terms shall have the following
24meanings: (1) "manufacturing process" shall mean the
25production of any article of tangible personal property,
26whether such article is a finished product or an article for

 

 

10300HB4951sam002- 459 -LRB103 38094 HLH 74177 a

1use in the process of manufacturing or assembling a different
2article of tangible personal property, by procedures commonly
3regarded as manufacturing, processing, fabricating, or
4refining which changes some existing material or materials
5into a material with a different form, use or name. In relation
6to a recognized integrated business composed of a series of
7operations which collectively constitute manufacturing, or
8individually constitute manufacturing operations, the
9manufacturing process shall be deemed to commence with the
10first operation or stage of production in the series, and
11shall not be deemed to end until the completion of the final
12product in the last operation or stage of production in the
13series; and further for purposes of exemption (e),
14photoprocessing is deemed to be a manufacturing process of
15tangible personal property for wholesale or retail sale; (2)
16"assembling process" shall mean the production of any article
17of tangible personal property, whether such article is a
18finished product or an article for use in the process of
19manufacturing or assembling a different article of tangible
20personal property, by the combination of existing materials in
21a manner commonly regarded as assembling which results in a
22material of a different form, use or name; (3) "machinery"
23shall mean major mechanical machines or major components of
24such machines contributing to a manufacturing or assembling
25process; and (4) "equipment" shall include any independent
26device or tool separate from any machinery but essential to an

 

 

10300HB4951sam002- 460 -LRB103 38094 HLH 74177 a

1integrated manufacturing or assembly process; including
2computers used primarily in a manufacturer's computer assisted
3design, computer assisted manufacturing (CAD/CAM) system; or
4any subunit or assembly comprising a component of any
5machinery or auxiliary, adjunct or attachment parts of
6machinery, such as tools, dies, jigs, fixtures, patterns and
7molds; or any parts which require periodic replacement in the
8course of normal operation; but shall not include hand tools.
9Equipment includes chemicals or chemicals acting as catalysts
10but only if the chemicals or chemicals acting as catalysts
11effect a direct and immediate change upon a product being
12manufactured or assembled for wholesale or retail sale or
13lease. The purchaser of such machinery and equipment who has
14an active resale registration number shall furnish such number
15to the seller at the time of purchase. The purchaser of such
16machinery and equipment and tools without an active resale
17registration number shall furnish to the seller a certificate
18of exemption stating facts establishing the exemption, which
19certificate shall be available to the Department for
20inspection or audit.
21    Except as provided in Section 2d of this Act, the rolling
22stock exemption applies to rolling stock used by an interstate
23carrier for hire, even just between points in Illinois, if
24such rolling stock transports, for hire, persons whose
25journeys or property whose shipments originate or terminate
26outside Illinois.

 

 

10300HB4951sam002- 461 -LRB103 38094 HLH 74177 a

1    Any informal rulings, opinions or letters issued by the
2Department in response to an inquiry or request for any
3opinion from any person regarding the coverage and
4applicability of exemption (e) to specific devices shall be
5published, maintained as a public record, and made available
6for public inspection and copying. If the informal ruling,
7opinion or letter contains trade secrets or other confidential
8information, where possible the Department shall delete such
9information prior to publication. Whenever such informal
10rulings, opinions, or letters contain any policy of general
11applicability, the Department shall formulate and adopt such
12policy as a rule in accordance with the provisions of the
13Illinois Administrative Procedure Act.
14    On and after July 1, 1987, no entity otherwise eligible
15under exemption (c) of this Section shall make tax-free
16purchases unless it has an active exemption identification
17number issued by the Department.
18    "Serviceman" means any person who is engaged in the
19occupation of making sales of service.
20    "Sale at Retail" means "sale at retail" as defined in the
21Retailers' Occupation Tax Act, which, on and after January 1,
222025, is defined to include leases.
23    "Supplier" means any person who makes sales of tangible
24personal property to servicemen for the purpose of resale as
25an incident to a sale of service.
26(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;

 

 

10300HB4951sam002- 462 -LRB103 38094 HLH 74177 a

1100-863, eff. 8-14-18; 101-9, eff. 6-5-19; 101-604, eff.
212-13-19.)
 
3    (35 ILCS 115/3)  (from Ch. 120, par. 439.103)
4    Sec. 3. Tax imposed. A tax is imposed upon all persons
5engaged in the business of making sales of service (referred
6to as "servicemen") on all tangible personal property
7transferred, including, on and after January 1, 2025,
8transferred by lease, as an incident of a sale of service,
9including computer software, and including photographs,
10negatives, and positives that are the product of
11photoprocessing, but not including products of photoprocessing
12produced for use in motion pictures for public commercial
13exhibition. Beginning January 1, 2001, prepaid telephone
14calling arrangements shall be considered tangible personal
15property subject to the tax imposed under this Act regardless
16of the form in which those arrangements may be embodied,
17transmitted, or fixed by any method now known or hereafter
18developed. Sales of (1) electricity delivered to customers by
19wire; (2) natural or artificial gas that is delivered to
20customers through pipes, pipelines, or mains; and (3) water
21that is delivered to customers through pipes, pipelines, or
22mains are not subject to tax under this Act. The provisions of
23this amendatory Act of the 98th General Assembly are
24declaratory of existing law as to the meaning and scope of this
25Act.

 

 

10300HB4951sam002- 463 -LRB103 38094 HLH 74177 a

1    The imposition of the tax under this Act on tangible
2personal property transferred by lease by persons engaged in
3the business of making sales of service applies to leases in
4effect, entered into, or renewed on or after January 1, 2025.
5In the case of leases, except as otherwise provided in this
6Act, the serviceman who is a lessor must remit for each tax
7return period only the tax applicable to that part of the
8selling price actually received during such tax return period.
9(Source: P.A. 98-583, eff. 1-1-14.)
 
10    (35 ILCS 115/3-5)
11    Sec. 3-5. Exemptions. The following tangible personal
12property is exempt from the tax imposed by this Act:
13    (1) Personal property sold by a corporation, society,
14association, foundation, institution, or organization, other
15than a limited liability company, that is organized and
16operated as a not-for-profit service enterprise for the
17benefit of persons 65 years of age or older if the personal
18property was not purchased by the enterprise for the purpose
19of resale by the enterprise.
20    (2) Personal property purchased by a not-for-profit
21Illinois county fair association for use in conducting,
22operating, or promoting the county fair.
23    (3) Personal property purchased by any not-for-profit arts
24or cultural organization that establishes, by proof required
25by the Department by rule, that it has received an exemption

 

 

10300HB4951sam002- 464 -LRB103 38094 HLH 74177 a

1under Section 501(c)(3) of the Internal Revenue Code and that
2is organized and operated primarily for the presentation or
3support of arts or cultural programming, activities, or
4services. These organizations include, but are not limited to,
5music and dramatic arts organizations such as symphony
6orchestras and theatrical groups, arts and cultural service
7organizations, local arts councils, visual arts organizations,
8and media arts organizations. On and after July 1, 2001 (the
9effective date of Public Act 92-35), however, an entity
10otherwise eligible for this exemption shall not make tax-free
11purchases unless it has an active identification number issued
12by the Department.
13    (4) Legal tender, currency, medallions, or gold or silver
14coinage issued by the State of Illinois, the government of the
15United States of America, or the government of any foreign
16country, and bullion.
17    (5) Until July 1, 2003 and beginning again on September 1,
182004 through August 30, 2014, graphic arts machinery and
19equipment, including repair and replacement parts, both new
20and used, and including that manufactured on special order or
21purchased for lease, certified by the purchaser to be used
22primarily for graphic arts production. Equipment includes
23chemicals or chemicals acting as catalysts but only if the
24chemicals or chemicals acting as catalysts effect a direct and
25immediate change upon a graphic arts product. Beginning on
26July 1, 2017, graphic arts machinery and equipment is included

 

 

10300HB4951sam002- 465 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 466 -LRB103 38094 HLH 74177 a

1installed on farm machinery and equipment, including, but not
2limited to, tractors, harvesters, sprayers, planters, seeders,
3or spreaders. Precision farming equipment includes, but is not
4limited to, soil testing sensors, computers, monitors,
5software, global positioning and mapping systems, and other
6such equipment.
7    Farm machinery and equipment also includes computers,
8sensors, software, and related equipment used primarily in the
9computer-assisted operation of production agriculture
10facilities, equipment, and activities such as, but not limited
11to, the collection, monitoring, and correlation of animal and
12crop data for the purpose of formulating animal diets and
13agricultural chemicals.
14    Beginning on January 1, 2024, farm machinery and equipment
15also includes electrical power generation equipment used
16primarily for production agriculture.
17    This item (7) is exempt from the provisions of Section
183-55.
19    (8) Until June 30, 2013, fuel and petroleum products sold
20to or used by an air common carrier, certified by the carrier
21to be used for consumption, shipment, or storage in the
22conduct of its business as an air common carrier, for a flight
23destined for or returning from a location or locations outside
24the United States without regard to previous or subsequent
25domestic stopovers.
26    Beginning July 1, 2013, fuel and petroleum products sold

 

 

10300HB4951sam002- 467 -LRB103 38094 HLH 74177 a

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

 

 

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1Vehicle Code.
2    (11) Photoprocessing machinery and equipment, including
3repair and replacement parts, both new and used, including
4that manufactured on special order, certified by the purchaser
5to be used primarily for photoprocessing, and including
6photoprocessing machinery and equipment purchased for lease.
7    (12) Until July 1, 2028, coal and aggregate exploration,
8mining, off-highway hauling, processing, maintenance, and
9reclamation equipment, including replacement parts and
10equipment, and including equipment purchased for lease, but
11excluding motor vehicles required to be registered under the
12Illinois Vehicle Code. The changes made to this Section by
13Public Act 97-767 apply on and after July 1, 2003, but no claim
14for credit or refund is allowed on or after August 16, 2013
15(the effective date of Public Act 98-456) for such taxes paid
16during the period beginning July 1, 2003 and ending on August
1716, 2013 (the effective date of Public Act 98-456).
18    (13) Beginning January 1, 1992 and through June 30, 2016,
19food for human consumption that is to be consumed off the
20premises where it is sold (other than alcoholic beverages,
21soft drinks and food that has been prepared for immediate
22consumption) and prescription and non-prescription medicines,
23drugs, medical appliances, and insulin, urine testing
24materials, syringes, and needles used by diabetics, for human
25use, when purchased for use by a person receiving medical
26assistance under Article V of the Illinois Public Aid Code who

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1transferred to the municipality without any further
2consideration by or on behalf of the municipality at the time
3of the completion of the municipal convention hall or upon the
4retirement or redemption of any bonds or other debt
5instruments issued by the public-facilities corporation in
6connection with the development of the municipal convention
7hall. This exemption includes existing public-facilities
8corporations as provided in Section 11-65-25 of the Illinois
9Municipal Code. This paragraph is exempt from the provisions
10of Section 3-55.
11    (29) Beginning January 1, 2010 and continuing through
12December 31, 2029, materials, parts, equipment, components,
13and furnishings incorporated into or upon an aircraft as part
14of the modification, refurbishment, completion, replacement,
15repair, or maintenance of the aircraft. This exemption
16includes consumable supplies used in the modification,
17refurbishment, completion, replacement, repair, and
18maintenance of aircraft. However, until January 1, 2024, this
19exemption excludes any materials, parts, equipment,
20components, and consumable supplies used in the modification,
21replacement, repair, and maintenance of aircraft engines or
22power plants, whether such engines or power plants are
23installed or uninstalled upon any such aircraft. "Consumable
24supplies" include, but are not limited to, adhesive, tape,
25sandpaper, general purpose lubricants, cleaning solution,
26latex gloves, and protective films.

 

 

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1    Beginning January 1, 2010 and continuing through December
231, 2023, this exemption applies only to the transfer of
3qualifying tangible personal property incident to the
4modification, refurbishment, completion, replacement, repair,
5or maintenance of an aircraft by persons who (i) hold an Air
6Agency Certificate and are empowered to operate an approved
7repair station by the Federal Aviation Administration, (ii)
8have a Class IV Rating, and (iii) conduct operations in
9accordance with Part 145 of the Federal Aviation Regulations.
10The exemption does not include aircraft operated by a
11commercial air carrier providing scheduled passenger air
12service pursuant to authority issued under Part 121 or Part
13129 of the Federal Aviation Regulations. From January 1, 2024
14through December 31, 2029, this exemption applies only to the
15use of qualifying tangible personal property by: (A) persons
16who modify, refurbish, complete, repair, replace, or maintain
17aircraft and who (i) hold an Air Agency Certificate and are
18empowered to operate an approved repair station by the Federal
19Aviation Administration, (ii) have a Class IV Rating, and
20(iii) conduct operations in accordance with Part 145 of the
21Federal Aviation Regulations; and (B) persons who engage in
22the modification, replacement, repair, and maintenance of
23aircraft engines or power plants without regard to whether or
24not those persons meet the qualifications of item (A).
25    The changes made to this paragraph (29) by Public Act
2698-534 are declarative of existing law. It is the intent of the

 

 

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1General Assembly that the exemption under this paragraph (29)
2applies continuously from January 1, 2010 through December 31,
32024; however, no claim for credit or refund is allowed for
4taxes paid as a result of the disallowance of this exemption on
5or after January 1, 2015 and prior to February 5, 2020 (the
6effective date of Public Act 101-629).
7    (30) Beginning January 1, 2017 and through December 31,
82026, menstrual pads, tampons, and menstrual cups.
9    (31) Tangible personal property transferred to a purchaser
10who is exempt from tax by operation of federal law. This
11paragraph is exempt from the provisions of Section 3-55.
12    (32) Qualified tangible personal property used in the
13construction or operation of a data center that has been
14granted a certificate of exemption by the Department of
15Commerce and Economic Opportunity, whether that tangible
16personal property is purchased by the owner, operator, or
17tenant of the data center or by a contractor or subcontractor
18of the owner, operator, or tenant. Data centers that would
19have qualified for a certificate of exemption prior to January
201, 2020 had Public Act 101-31 been in effect, may apply for and
21obtain an exemption for subsequent purchases of computer
22equipment or enabling software purchased or leased to upgrade,
23supplement, or replace computer equipment or enabling software
24purchased or leased in the original investment that would have
25qualified.
26    The Department of Commerce and Economic Opportunity shall

 

 

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

 

 

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1    electricity necessary to operate qualified tangible
2    personal property; and all other tangible personal
3    property that is essential to the operations of a computer
4    data center. The term "qualified tangible personal
5    property" also includes building materials physically
6    incorporated into in to the qualifying data center. To
7    document the exemption allowed under this Section, the
8    retailer must obtain from the purchaser a copy of the
9    certificate of eligibility issued by the Department of
10    Commerce and Economic Opportunity.
11    This item (32) is exempt from the provisions of Section
123-55.
13    (33) Beginning July 1, 2022, breast pumps, breast pump
14collection and storage supplies, and breast pump kits. This
15item (33) is exempt from the provisions of Section 3-55. As
16used in this item (33):
17        "Breast pump" means an electrically controlled or
18    manually controlled pump device designed or marketed to be
19    used to express milk from a human breast during lactation,
20    including the pump device and any battery, AC adapter, or
21    other power supply unit that is used to power the pump
22    device and is packaged and sold with the pump device at the
23    time of sale.
24        "Breast pump collection and storage supplies" means
25    items of tangible personal property designed or marketed
26    to be used in conjunction with a breast pump to collect

 

 

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

 

 

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1    pre-packaged as a breast pump kit by the breast pump
2    manufacturer or distributor.
3    (34) Tangible personal property sold by or on behalf of
4the State Treasurer pursuant to the Revised Uniform Unclaimed
5Property Act. This item (34) is exempt from the provisions of
6Section 3-55.
7    (35) Beginning on January 1, 2024, tangible personal
8property purchased by an active duty member of the armed
9forces of the United States who presents valid military
10identification and purchases the property using a form of
11payment where the federal government is the payor. The member
12of the armed forces must complete, at the point of sale, a form
13prescribed by the Department of Revenue documenting that the
14transaction is eligible for the exemption under this
15paragraph. Retailers must keep the form as documentation of
16the exemption in their records for a period of not less than 6
17years. "Armed forces of the United States" means the United
18States Army, Navy, Air Force, Marine Corps, or Coast Guard.
19This paragraph is exempt from the provisions of Section 3-55.
20    (36) The lease of the following tangible personal
21property:
22        (1) computer software transferred subject to a license
23    that meets the following requirements:
24            (A) it is evidenced by a written agreement signed
25        by the licensor and the customer;
26                (i) an electronic agreement in which the

 

 

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1            customer accepts the license by means of an
2            electronic signature that is verifiable and can be
3            authenticated and is attached to or made part of
4            the license will comply with this requirement;
5                (ii) a license agreement in which the customer
6            electronically accepts the terms by clicking "I
7            agree" does not comply with this requirement;
8            (B) it restricts the customer's duplication and
9        use of the software;
10            (C) it prohibits the customer from licensing,
11        sublicensing, or transferring the software to a third
12        party (except to a related party) without the
13        permission and continued control of the licensor;
14            (D) the licensor has a policy of providing another
15        copy at minimal or no charge if the customer loses or
16        damages the software, or of permitting the licensee to
17        make and keep an archival copy, and such policy is
18        either stated in the license agreement, supported by
19        the licensor's books and records, or supported by a
20        notarized statement made under penalties of perjury by
21        the licensor; and
22            (E) the customer must destroy or return all copies
23        of the software to the licensor at the end of the
24        license period; this provision is deemed to be met, in
25        the case of a perpetual license, without being set
26        forth in the license agreement; and

 

 

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1        (2) property that is subject to a tax on lease
2    receipts imposed by a home rule unit of local government
3    if the ordinance imposing that tax was adopted prior to
4    January 1, 2023.
5(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
6Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
775-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
8Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,
9eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
10revised 12-12-23.)
 
11    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
12    Sec. 3-10. Rate of tax. Unless otherwise provided in this
13Section, the tax imposed by this Act is at the rate of 6.25% of
14the "selling price", as defined in Section 2 of the Service Use
15Tax Act, of the tangible personal property, including, on and
16after January 1, 2025, tangible personal property transferred
17by lease. For the purpose of computing this tax, in no event
18shall the "selling price" be less than the cost price to the
19serviceman of the tangible personal property transferred. The
20selling price of each item of tangible personal property
21transferred as an incident of a sale of service may be shown as
22a distinct and separate item on the serviceman's billing to
23the service customer. If the selling price is not so shown, the
24selling price of the tangible personal property is deemed to
25be 50% of the serviceman's entire billing to the service

 

 

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

 

 

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1made during that time.
2    With respect to mid-range ethanol blends, as defined in
3Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
4applies to (i) 80% of the selling price of property
5transferred as an incident to the sale of service on or after
6January 1, 2024 and on or before December 31, 2028 and (ii)
7100% of the selling price of property transferred as an
8incident to the sale of service after December 31, 2028. If, at
9any time, however, the tax under this Act on sales of mid-range
10ethanol blends is imposed at the rate of 1.25%, then the tax
11imposed by this Act applies to 100% of the selling price of
12mid-range ethanol blends transferred as an incident to the
13sale of service during that time.
14    With respect to majority blended ethanol fuel, as defined
15in the Use Tax Act, the tax imposed by this Act does not apply
16to the selling price of property transferred as an incident to
17the sale of service on or after July 1, 2003 and on or before
18December 31, 2028 but applies to 100% of the selling price
19thereafter.
20    With respect to biodiesel blends, as defined in the Use
21Tax Act, with no less than 1% and no more than 10% biodiesel,
22the tax imposed by this Act applies to (i) 80% of the selling
23price of property transferred as an incident to the sale of
24service on or after July 1, 2003 and on or before December 31,
252018 and (ii) 100% of the proceeds of the selling price after
26December 31, 2018 and before January 1, 2024. On and after

 

 

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1January 1, 2024 and on or before December 31, 2030, the
2taxation of biodiesel, renewable diesel, and biodiesel blends
3shall be as provided in Section 3-5.1 of the Use Tax Act. If,
4at any time, however, the tax under this Act on sales of
5biodiesel blends, as defined in the Use Tax Act, with no less
6than 1% and no more than 10% biodiesel is imposed at the rate
7of 1.25%, then the tax imposed by this Act applies to 100% of
8the proceeds of sales of biodiesel blends with no less than 1%
9and no more than 10% biodiesel made during that time.
10    With respect to biodiesel, as defined in the Use Tax Act,
11and biodiesel blends, as defined in the Use Tax Act, with more
12than 10% but no more than 99% biodiesel material, the tax
13imposed by this Act does not apply to the proceeds of the
14selling price of property transferred as an incident to the
15sale of service on or after July 1, 2003 and on or before
16December 31, 2023. On and after January 1, 2024 and on or
17before December 31, 2030, the taxation of biodiesel, renewable
18diesel, and biodiesel blends shall be as provided in Section
193-5.1 of the Use Tax Act.
20    At the election of any registered serviceman made for each
21fiscal year, sales of service in which the aggregate annual
22cost price of tangible personal property transferred as an
23incident to the sales of service is less than 35%, or 75% in
24the case of servicemen transferring prescription drugs or
25servicemen engaged in graphic arts production, of the
26aggregate annual total gross receipts from all sales of

 

 

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1service, the tax imposed by this Act shall be based on the
2serviceman's cost price of the tangible personal property
3transferred incident to the sale of those services.
4    Until July 1, 2022 and beginning again on July 1, 2023, the
5tax shall be imposed at the rate of 1% on food prepared for
6immediate consumption and transferred incident to a sale of
7service subject to this Act or the Service Use Tax Act by an
8entity licensed under the Hospital Licensing Act, the Nursing
9Home Care Act, the Assisted Living and Shared Housing Act, the
10ID/DD Community Care Act, the MC/DD Act, the Specialized
11Mental Health Rehabilitation Act of 2013, or the Child Care
12Act of 1969, or an entity that holds a permit issued pursuant
13to the Life Care Facilities Act. Until July 1, 2022 and
14beginning again on July 1, 2023, the tax shall also be imposed
15at the rate of 1% on food for human consumption that is to be
16consumed off the premises where it is sold (other than
17alcoholic beverages, food consisting of or infused with adult
18use cannabis, soft drinks, and food that has been prepared for
19immediate consumption and is not otherwise included in this
20paragraph).
21    Beginning on July 1, 2022 and until July 1, 2023, the tax
22shall be imposed at the rate of 0% on food prepared for
23immediate consumption and transferred incident to a sale of
24service subject to this Act or the Service Use Tax Act by an
25entity licensed under the Hospital Licensing Act, the Nursing
26Home Care Act, the Assisted Living and Shared Housing Act, the

 

 

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1ID/DD Community Care Act, the MC/DD Act, the Specialized
2Mental Health Rehabilitation Act of 2013, or the Child Care
3Act of 1969, or an entity that holds a permit issued pursuant
4to the Life Care Facilities Act. Beginning July 1, 2022 and
5until July 1, 2023, the tax shall also be imposed at the rate
6of 0% on food for human consumption that is to be consumed off
7the premises where it is sold (other than alcoholic beverages,
8food consisting of or infused with adult use cannabis, soft
9drinks, and food that has been prepared for immediate
10consumption and is not otherwise included in this paragraph).
11    The tax shall also be imposed at the rate of 1% on
12prescription and nonprescription medicines, drugs, medical
13appliances, products classified as Class III medical devices
14by the United States Food and Drug Administration that are
15used for cancer treatment pursuant to a prescription, as well
16as any accessories and components related to those devices,
17modifications to a motor vehicle for the purpose of rendering
18it usable by a person with a disability, and insulin, blood
19sugar testing materials, syringes, and needles used by human
20diabetics. For the purposes of this Section, until September
211, 2009: the term "soft drinks" means any complete, finished,
22ready-to-use, non-alcoholic drink, whether carbonated or not,
23including, but not limited to, soda water, cola, fruit juice,
24vegetable juice, carbonated water, and all other preparations
25commonly known as soft drinks of whatever kind or description
26that are contained in any closed or sealed can, carton, or

 

 

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

 

 

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1include candy. For purposes of this Section, "candy" means a
2preparation of sugar, honey, or other natural or artificial
3sweeteners in combination with chocolate, fruits, nuts or
4other ingredients or flavorings in the form of bars, drops, or
5pieces. "Candy" does not include any preparation that contains
6flour or requires refrigeration.
7    Notwithstanding any other provisions of this Act,
8beginning September 1, 2009, "nonprescription medicines and
9drugs" does not include grooming and hygiene products. For
10purposes of this Section, "grooming and hygiene products"
11includes, but is not limited to, soaps and cleaning solutions,
12shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
13lotions and screens, unless those products are available by
14prescription only, regardless of whether the products meet the
15definition of "over-the-counter-drugs". For the purposes of
16this paragraph, "over-the-counter-drug" means a drug for human
17use that contains a label that identifies the product as a drug
18as required by 21 CFR 201.66. The "over-the-counter-drug"
19label includes:
20        (A) a "Drug Facts" panel; or
21        (B) a statement of the "active ingredient(s)" with a
22    list of those ingredients contained in the compound,
23    substance or preparation.
24    Beginning on January 1, 2014 (the effective date of Public
25Act 98-122), "prescription and nonprescription medicines and
26drugs" includes medical cannabis purchased from a registered

 

 

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1dispensing organization under the Compassionate Use of Medical
2Cannabis Program Act.
3    As used in this Section, "adult use cannabis" means
4cannabis subject to tax under the Cannabis Cultivation
5Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
6and does not include cannabis subject to tax under the
7Compassionate Use of Medical Cannabis Program Act.
8(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
9102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,
10Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;
11103-154, eff. 6-30-23.)
 
12    Section 75-20. The Retailers' Occupation Tax Act is
13amended by changing the title of the Act, by changing Sections
141, 2, 2-5, 2-10, 2-12, 2a, 2c, and 3, and by adding Section
151.05 as follows:
 
16    (35 ILCS 120/Act title)
17    An Act in relation to a tax upon persons engaged in the
18business of selling, including leasing, tangible personal
19property.
 
20    (35 ILCS 120/1)  (from Ch. 120, par. 440)
21    Sec. 1. Definitions. "Sale at retail" means any transfer
22of the ownership of, the or title to, the possession or control
23of, the right to possess or control, or a license to use

 

 

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1tangible personal property to a purchaser, for the purpose of
2use or consumption, and not for the purpose of resale in any
3form as tangible personal property to the extent not first
4subjected to a use for which it was purchased, for a valuable
5consideration: Provided that the property purchased is deemed
6to be purchased for the purpose of resale, despite first being
7used, to the extent to which it is resold as an ingredient of
8an intentionally produced product or byproduct of
9manufacturing. For this purpose, slag produced as an incident
10to manufacturing pig iron or steel and sold is considered to be
11an intentionally produced byproduct of manufacturing.
12Transactions whereby the possession of the property is
13transferred but the seller retains the title as security for
14payment of the selling price shall be deemed to be sales.
15    "Sale at retail" shall be construed to include any
16transfer of the ownership of, the or title to, the possession
17or control of, the right to possess or control, or a license to
18use tangible personal property to a purchaser, for use or
19consumption by any other person to whom such purchaser may
20transfer the tangible personal property without a valuable
21consideration, and to include any transfer, whether made for
22or without a valuable consideration, for resale in any form as
23tangible personal property unless made in compliance with
24Section 2c of this Act.
25    Sales of tangible personal property, which property, to
26the extent not first subjected to a use for which it was

 

 

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1purchased, as an ingredient or constituent, goes into and
2forms a part of tangible personal property subsequently the
3subject of a "Sale at retail", are not sales at retail as
4defined in this Act: Provided that the property purchased is
5deemed to be purchased for the purpose of resale, despite
6first being used, to the extent to which it is resold as an
7ingredient of an intentionally produced product or byproduct
8of manufacturing.
9    "Sale at retail" shall be construed to include any
10Illinois florist's sales transaction in which the purchase
11order is received in Illinois by a florist and the sale is for
12use or consumption, but the Illinois florist has a florist in
13another state deliver the property to the purchaser or the
14purchaser's donee in such other state.
15    Nonreusable tangible personal property that is used by
16persons engaged in the business of operating a restaurant,
17cafeteria, or drive-in is a sale for resale when it is
18transferred to customers in the ordinary course of business as
19part of the sale of food or beverages and is used to deliver,
20package, or consume food or beverages, regardless of where
21consumption of the food or beverages occurs. Examples of those
22items include, but are not limited to nonreusable, paper and
23plastic cups, plates, baskets, boxes, sleeves, buckets or
24other containers, utensils, straws, placemats, napkins, doggie
25bags, and wrapping or packaging materials that are transferred
26to customers as part of the sale of food or beverages in the

 

 

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1ordinary course of business.
2    The purchase, employment and transfer of such tangible
3personal property as newsprint and ink for the primary purpose
4of conveying news (with or without other information) is not a
5purchase, use or sale of tangible personal property.
6    A person whose activities are organized and conducted
7primarily as a not-for-profit service enterprise, and who
8engages in selling tangible personal property at retail
9(whether to the public or merely to members and their guests)
10is engaged in the business of selling tangible personal
11property at retail with respect to such transactions,
12excepting only a person organized and operated exclusively for
13charitable, religious or educational purposes either (1), to
14the extent of sales by such person to its members, students,
15patients or inmates of tangible personal property to be used
16primarily for the purposes of such person, or (2), to the
17extent of sales by such person of tangible personal property
18which is not sold or offered for sale by persons organized for
19profit. The selling of school books and school supplies by
20schools at retail to students is not "primarily for the
21purposes of" the school which does such selling. The
22provisions of this paragraph shall not apply to nor subject to
23taxation occasional dinners, socials or similar activities of
24a person organized and operated exclusively for charitable,
25religious or educational purposes, whether or not such
26activities are open to the public.

 

 

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1    A person who is the recipient of a grant or contract under
2Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
3serves meals to participants in the federal Nutrition Program
4for the Elderly in return for contributions established in
5amount by the individual participant pursuant to a schedule of
6suggested fees as provided for in the federal Act is not
7engaged in the business of selling tangible personal property
8at retail with respect to such transactions.
9    "Lease" means a transfer of the possession or control of,
10the right to possess or control, or a license to use, but not
11title to, tangible personal property for a fixed or
12indeterminate term for consideration, regardless of the name
13by which the transaction is called. "Lease" does not include a
14lease entered into merely as a security agreement that does
15not involve a transfer of possession or control from the
16lessor to the lessee.
17    On and after January 1, 2025, the term "sale", when used in
18this Act, includes a lease.
19    "Purchaser" means anyone who, through a sale at retail,
20acquires the ownership of, the or title to, the possession or
21control of, the right to possess or control, or a license to
22use tangible personal property for a valuable consideration.
23    "Reseller of motor fuel" means any person engaged in the
24business of selling or delivering or transferring title of
25motor fuel to another person other than for use or
26consumption. No person shall act as a reseller of motor fuel

 

 

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1within this State without first being registered as a reseller
2pursuant to Section 2c or a retailer pursuant to Section 2a.
3    "Selling price" or the "amount of sale" means the
4consideration for a sale valued in money whether received in
5money or otherwise, including cash, credits, property, other
6than as hereinafter provided, and services, but, prior to
7January 1, 2020 and beginning again on January 1, 2022, not
8including the value of or credit given for traded-in tangible
9personal property where the item that is traded-in is of like
10kind and character as that which is being sold; beginning
11January 1, 2020 and until January 1, 2022, "selling price"
12includes the portion of the value of or credit given for
13traded-in motor vehicles of the First Division as defined in
14Section 1-146 of the Illinois Vehicle Code of like kind and
15character as that which is being sold that exceeds $10,000.
16"Selling price" shall be determined without any deduction on
17account of the cost of the property sold, the cost of materials
18used, labor or service cost or any other expense whatsoever,
19but does not include charges that are added to prices by
20sellers on account of the seller's tax liability under this
21Act, or on account of the seller's duty to collect, from the
22purchaser, the tax that is imposed by the Use Tax Act, or,
23except as otherwise provided with respect to any cigarette tax
24imposed by a home rule unit, on account of the seller's tax
25liability under any local occupation tax administered by the
26Department, or, except as otherwise provided with respect to

 

 

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1any cigarette tax imposed by a home rule unit on account of the
2seller's duty to collect, from the purchasers, the tax that is
3imposed under any local use tax administered by the
4Department. Effective December 1, 1985, "selling price" shall
5include charges that are added to prices by sellers on account
6of the seller's tax liability under the Cigarette Tax Act, on
7account of the sellers' duty to collect, from the purchaser,
8the tax imposed under the Cigarette Use Tax Act, and on account
9of the seller's duty to collect, from the purchaser, any
10cigarette tax imposed by a home rule unit.
11    The provisions of this paragraph, which provides only for
12an alternative meaning of "selling price" with respect to the
13sale of certain motor vehicles incident to the contemporaneous
14lease of those motor vehicles, continue in effect and are not
15changed by the tax on leases implemented by this amendatory
16Act of the 103rd General Assembly. Notwithstanding any law to
17the contrary, for any motor vehicle, as defined in Section
181-146 of the Vehicle Code, that is sold on or after January 1,
192015 for the purpose of leasing the vehicle for a defined
20period that is longer than one year and (1) is a motor vehicle
21of the second division that: (A) is a self-contained motor
22vehicle designed or permanently converted to provide living
23quarters for recreational, camping, or travel use, with direct
24walk through access to the living quarters from the driver's
25seat; (B) is of the van configuration designed for the
26transportation of not less than 7 nor more than 16 passengers;

 

 

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1or (C) has a gross vehicle weight rating of 8,000 pounds or
2less or (2) is a motor vehicle of the first division, "selling
3price" or "amount of sale" means the consideration received by
4the lessor pursuant to the lease contract, including amounts
5due at lease signing and all monthly or other regular payments
6charged over the term of the lease. Also included in the
7selling price is any amount received by the lessor from the
8lessee for the leased vehicle that is not calculated at the
9time the lease is executed, including, but not limited to,
10excess mileage charges and charges for excess wear and tear.
11For sales that occur in Illinois, with respect to any amount
12received by the lessor from the lessee for the leased vehicle
13that is not calculated at the time the lease is executed, the
14lessor who purchased the motor vehicle does not incur the tax
15imposed by the Use Tax Act on those amounts, and the retailer
16who makes the retail sale of the motor vehicle to the lessor is
17not required to collect the tax imposed by the Use Tax Act or
18to pay the tax imposed by this Act on those amounts. However,
19the lessor who purchased the motor vehicle assumes the
20liability for reporting and paying the tax on those amounts
21directly to the Department in the same form (Illinois
22Retailers' Occupation Tax, and local retailers' occupation
23taxes, if applicable) in which the retailer would have
24reported and paid such tax if the retailer had accounted for
25the tax to the Department. For amounts received by the lessor
26from the lessee that are not calculated at the time the lease

 

 

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1is executed, the lessor must file the return and pay the tax to
2the Department by the due date otherwise required by this Act
3for returns other than transaction returns. If the retailer is
4entitled under this Act to a discount for collecting and
5remitting the tax imposed under this Act to the Department
6with respect to the sale of the motor vehicle to the lessor,
7then the right to the discount provided in this Act shall be
8transferred to the lessor with respect to the tax paid by the
9lessor for any amount received by the lessor from the lessee
10for the leased vehicle that is not calculated at the time the
11lease is executed; provided that the discount is only allowed
12if the return is timely filed and for amounts timely paid. The
13"selling price" of a motor vehicle that is sold on or after
14January 1, 2015 for the purpose of leasing for a defined period
15of longer than one year shall not be reduced by the value of or
16credit given for traded-in tangible personal property owned by
17the lessor, nor shall it be reduced by the value of or credit
18given for traded-in tangible personal property owned by the
19lessee, regardless of whether the trade-in value thereof is
20assigned by the lessee to the lessor. In the case of a motor
21vehicle that is sold for the purpose of leasing for a defined
22period of longer than one year, the sale occurs at the time of
23the delivery of the vehicle, regardless of the due date of any
24lease payments. A lessor who incurs a Retailers' Occupation
25Tax liability on the sale of a motor vehicle coming off lease
26may not take a credit against that liability for the Use Tax

 

 

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1the lessor paid upon the purchase of the motor vehicle (or for
2any tax the lessor paid with respect to any amount received by
3the lessor from the lessee for the leased vehicle that was not
4calculated at the time the lease was executed) if the selling
5price of the motor vehicle at the time of purchase was
6calculated using the definition of "selling price" as defined
7in this paragraph. Notwithstanding any other provision of this
8Act to the contrary, lessors shall file all returns and make
9all payments required under this paragraph to the Department
10by electronic means in the manner and form as required by the
11Department. This paragraph does not apply to leases of motor
12vehicles for which, at the time the lease is entered into, the
13term of the lease is not a defined period, including leases
14with a defined initial period with the option to continue the
15lease on a month-to-month or other basis beyond the initial
16defined period.
17    The phrase "like kind and character" shall be liberally
18construed (including but not limited to any form of motor
19vehicle for any form of motor vehicle, or any kind of farm or
20agricultural implement for any other kind of farm or
21agricultural implement), while not including a kind of item
22which, if sold at retail by that retailer, would be exempt from
23retailers' occupation tax and use tax as an isolated or
24occasional sale.
25    "Gross receipts" from the sales of tangible personal
26property at retail means the total selling price or the amount

 

 

10300HB4951sam002- 501 -LRB103 38094 HLH 74177 a

1of such sales, as hereinbefore defined. In the case of charge
2and time sales, the amount thereof shall be included only as
3and when payments are received by the seller. In the case of
4leases, except as otherwise provided in this Act, the amount
5thereof shall be included only as and when gross receipts are
6received by the lessor. Receipts or other consideration
7derived by a seller from the sale, transfer or assignment of
8accounts receivable to a wholly owned subsidiary will not be
9deemed payments prior to the time the purchaser makes payment
10on such accounts.
11    "Department" means the Department of Revenue.
12    "Person" means any natural individual, firm, partnership,
13association, joint stock company, joint adventure, public or
14private corporation, limited liability company, or a receiver,
15executor, trustee, guardian or other representative appointed
16by order of any court.
17    The isolated or occasional sale of tangible personal
18property at retail by a person who does not hold himself out as
19being engaged (or who does not habitually engage) in selling
20such tangible personal property at retail, or a sale through a
21bulk vending machine, does not constitute engaging in a
22business of selling such tangible personal property at retail
23within the meaning of this Act; provided that any person who is
24engaged in a business which is not subject to the tax imposed
25by this Act because of involving the sale of or a contract to
26sell real estate or a construction contract to improve real

 

 

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1estate or a construction contract to engineer, install, and
2maintain an integrated system of products, but who, in the
3course of conducting such business, transfers tangible
4personal property to users or consumers in the finished form
5in which it was purchased, and which does not become real
6estate or was not engineered and installed, under any
7provision of a construction contract or real estate sale or
8real estate sales agreement entered into with some other
9person arising out of or because of such nontaxable business,
10is engaged in the business of selling tangible personal
11property at retail to the extent of the value of the tangible
12personal property so transferred. If, in such a transaction, a
13separate charge is made for the tangible personal property so
14transferred, the value of such property, for the purpose of
15this Act, shall be the amount so separately charged, but not
16less than the cost of such property to the transferor; if no
17separate charge is made, the value of such property, for the
18purposes of this Act, is the cost to the transferor of such
19tangible personal property. Construction contracts for the
20improvement of real estate consisting of engineering,
21installation, and maintenance of voice, data, video, security,
22and all telecommunication systems do not constitute engaging
23in a business of selling tangible personal property at retail
24within the meaning of this Act if they are sold at one
25specified contract price.
26    A person who holds himself or herself out as being engaged

 

 

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1(or who habitually engages) in selling tangible personal
2property at retail is a person engaged in the business of
3selling tangible personal property at retail hereunder with
4respect to such sales (and not primarily in a service
5occupation) notwithstanding the fact that such person designs
6and produces such tangible personal property on special order
7for the purchaser and in such a way as to render the property
8of value only to such purchaser, if such tangible personal
9property so produced on special order serves substantially the
10same function as stock or standard items of tangible personal
11property that are sold at retail.
12    Persons who engage in the business of transferring
13tangible personal property upon the redemption of trading
14stamps are engaged in the business of selling such property at
15retail and shall be liable for and shall pay the tax imposed by
16this Act on the basis of the retail value of the property
17transferred upon redemption of such stamps.
18    "Bulk vending machine" means a vending machine, containing
19unsorted confections, nuts, toys, or other items designed
20primarily to be used or played with by children which, when a
21coin or coins of a denomination not larger than $0.50 are
22inserted, are dispensed in equal portions, at random and
23without selection by the customer.
24    "Remote retailer" means a retailer that does not maintain
25within this State, directly or by a subsidiary, an office,
26distribution house, sales house, warehouse or other place of

 

 

10300HB4951sam002- 504 -LRB103 38094 HLH 74177 a

1business, or any agent or other representative operating
2within this State under the authority of the retailer or its
3subsidiary, irrespective of whether such place of business or
4agent is located here permanently or temporarily or whether
5such retailer or subsidiary is licensed to do business in this
6State.
7    "Marketplace" means a physical or electronic place, forum,
8platform, application, or other method by which a marketplace
9seller sells or offers to sell items.
10    "Marketplace facilitator" means a person who, pursuant to
11an agreement with an unrelated third-party marketplace seller,
12directly or indirectly through one or more affiliates
13facilitates a retail sale by an unrelated third party
14marketplace seller by:
15        (1) listing or advertising for sale by the marketplace
16    seller in a marketplace, tangible personal property that
17    is subject to tax under this Act; and
18        (2) either directly or indirectly, through agreements
19    or arrangements with third parties, collecting payment
20    from the customer and transmitting that payment to the
21    marketplace seller regardless of whether the marketplace
22    facilitator receives compensation or other consideration
23    in exchange for its services.
24    A person who provides advertising services, including
25listing products for sale, is not considered a marketplace
26facilitator, so long as the advertising service platform or

 

 

10300HB4951sam002- 505 -LRB103 38094 HLH 74177 a

1forum does not engage, directly or indirectly through one or
2more affiliated persons, in the activities described in
3paragraph (2) of this definition of "marketplace facilitator".
4    "Marketplace facilitator" does not include any person
5licensed under the Auction License Act. This exemption does
6not apply to any person who is an Internet auction listing
7service, as defined by the Auction License Act.
8    "Marketplace seller" means a person that makes sales
9through a marketplace operated by an unrelated third party
10marketplace facilitator.
11(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20;
12102-353, eff. 1-1-22; 102-634, eff. 8-27-21; 102-813, eff.
135-13-22.)
 
14    (35 ILCS 120/1.05 new)
15    Sec. 1.05. Legislative intent; leases. It is the intent of
16the General Assembly in enacting this amendatory Act of the
17103rd General Assembly to apply the tax imposed under this
18Act, except as otherwise provided in this Act, to persons
19engaged in the business of leasing at retail tangible personal
20property, other than motor vehicles, watercraft, aircraft, and
21semitrailers, as defined in Section 1-187 of the Illinois
22Vehicle Code, that are required to be registered with an
23agency of this State, leased at retail from a retailer, for
24leases in effect, entered into, or renewed on or after January
251, 2025.
 

 

 

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1    (35 ILCS 120/2)  (from Ch. 120, par. 441)
2    Sec. 2. Tax imposed.
3    (a) A tax is imposed upon persons engaged in the business
4of selling at retail, which, on and after January 1, 2025,
5includes leasing, tangible personal property, including
6computer software, and including photographs, negatives, and
7positives that are the product of photoprocessing, but not
8including products of photoprocessing produced for use in
9motion pictures for public commercial exhibition. Beginning
10January 1, 2001, prepaid telephone calling arrangements shall
11be considered tangible personal property subject to the tax
12imposed under this Act regardless of the form in which those
13arrangements may be embodied, transmitted, or fixed by any
14method now known or hereafter developed.
15    The imposition of the tax under this Act on persons
16engaged in the business of leasing tangible personal property
17applies to leases in effect, entered into, or renewed on or
18after January 1, 2025. In the case of leases, except as
19otherwise provided in this Act, the lessor must remit, for
20each tax return period, only the tax applicable to that part of
21the selling price actually received during such tax return
22period.
23    The inclusion of leases in the tax imposed under this Act
24by this amendatory Act of the 103rd General Assembly does not,
25however, extend to motor vehicles, watercraft, aircraft, and

 

 

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1semitrailers, as defined in Section 1-187 of the Illinois
2Vehicle Code, that are required to be registered with an
3agency of this State. The taxation of these items shall
4continue in effect as prior to the effective date of the
5changes made to this Section by this amendatory Act of the
6103rd General Assembly (i.e., dealers owe retailers'
7occupation tax, lessors owe use tax, and lessees are not
8subject to retailers' occupation or use tax).
9    Sales of (1) electricity delivered to customers by wire;
10(2) natural or artificial gas that is delivered to customers
11through pipes, pipelines, or mains; and (3) water that is
12delivered to customers through pipes, pipelines, or mains are
13not subject to tax under this Act. The provisions of this
14amendatory Act of the 98th General Assembly are declaratory of
15existing law as to the meaning and scope of this Act.
16    (b) Beginning on January 1, 2021, a remote retailer is
17engaged in the occupation of selling at retail in Illinois for
18purposes of this Act, if:
19        (1) the cumulative gross receipts from sales of
20    tangible personal property to purchasers in Illinois are
21    $100,000 or more; or
22        (2) the retailer enters into 200 or more separate
23    transactions for the sale of tangible personal property to
24    purchasers in Illinois.
25    Remote retailers that meet or exceed the threshold in
26either paragraph (1) or (2) above shall be liable for all

 

 

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1applicable State retailers' and locally imposed retailers'
2occupation taxes administered by the Department on all retail
3sales to Illinois purchasers.
4    The remote retailer shall determine on a quarterly basis,
5ending on the last day of March, June, September, and
6December, whether he or she meets the criteria of either
7paragraph (1) or (2) of this subsection for the preceding
812-month period. If the retailer meets the criteria of either
9paragraph (1) or (2) for a 12-month period, he or she is
10considered a retailer maintaining a place of business in this
11State and is required to collect and remit the tax imposed
12under this Act and all retailers' occupation tax imposed by
13local taxing jurisdictions in Illinois, provided such local
14taxes are administered by the Department, and to file all
15applicable returns for one year. At the end of that one-year
16period, the retailer shall determine whether the retailer met
17the criteria of either paragraph (1) or (2) for the preceding
1812-month period. If the retailer met the criteria in either
19paragraph (1) or (2) for the preceding 12-month period, he or
20she is considered a retailer maintaining a place of business
21in this State and is required to collect and remit all
22applicable State and local retailers' occupation taxes and
23file returns for the subsequent year. If, at the end of a
24one-year period, a retailer that was required to collect and
25remit the tax imposed under this Act determines that he or she
26did not meet the criteria in either paragraph (1) or (2) during

 

 

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1the preceding 12-month period, then the retailer shall
2subsequently determine on a quarterly basis, ending on the
3last day of March, June, September, and December, whether he
4or she meets the criteria of either paragraph (1) or (2) for
5the preceding 12-month period.
6    (b-5) For the purposes of this Section, neither the gross
7receipts from nor the number of separate transactions for
8sales of tangible personal property to purchasers in Illinois
9that a remote retailer makes through a marketplace facilitator
10shall be included for the purposes of determining whether he
11or she has met the thresholds of subsection (b) of this Section
12so long as the remote retailer has received certification from
13the marketplace facilitator that the marketplace facilitator
14is legally responsible for payment of tax on such sales.
15    (b-10) A remote retailer required to collect taxes imposed
16under the Use Tax Act on retail sales made to Illinois
17purchasers shall be liable to the Department for such taxes,
18except when the remote retailer is relieved of the duty to
19remit such taxes by virtue of having paid to the Department
20taxes imposed by this Act in accordance with this Section upon
21his or her gross receipts from such sales.
22    (c) Marketplace facilitators engaged in the business of
23selling at retail tangible personal property in Illinois.
24Beginning January 1, 2021, a marketplace facilitator is
25engaged in the occupation of selling at retail tangible
26personal property in Illinois for purposes of this Act if,

 

 

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1during the previous 12-month period:
2        (1) the cumulative gross receipts from sales of
3    tangible personal property on its own behalf or on behalf
4    of marketplace sellers to purchasers in Illinois equals
5    $100,000 or more; or
6        (2) the marketplace facilitator enters into 200 or
7    more separate transactions on its own behalf or on behalf
8    of marketplace sellers for the sale of tangible personal
9    property to purchasers in Illinois, regardless of whether
10    the marketplace facilitator or marketplace sellers for
11    whom such sales are facilitated are registered as
12    retailers in this State.
13    A marketplace facilitator who meets either paragraph (1)
14or (2) of this subsection is required to remit the applicable
15State retailers' occupation taxes under this Act and local
16retailers' occupation taxes administered by the Department on
17all taxable sales of tangible personal property made by the
18marketplace facilitator or facilitated for marketplace sellers
19to customers in this State. A marketplace facilitator selling
20or facilitating the sale of tangible personal property to
21customers in this State is subject to all applicable
22procedures and requirements of this Act.
23    The marketplace facilitator shall determine on a quarterly
24basis, ending on the last day of March, June, September, and
25December, whether he or she meets the criteria of either
26paragraph (1) or (2) of this subsection for the preceding

 

 

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112-month period. If the marketplace facilitator meets the
2criteria of either paragraph (1) or (2) for a 12-month period,
3he or she is considered a retailer maintaining a place of
4business in this State and is required to remit the tax imposed
5under this Act and all retailers' occupation tax imposed by
6local taxing jurisdictions in Illinois, provided such local
7taxes are administered by the Department, and to file all
8applicable returns for one year. At the end of that one-year
9period, the marketplace facilitator shall determine whether it
10met the criteria of either paragraph (1) or (2) for the
11preceding 12-month period. If the marketplace facilitator met
12the criteria in either paragraph (1) or (2) for the preceding
1312-month period, it is considered a retailer maintaining a
14place of business in this State and is required to collect and
15remit all applicable State and local retailers' occupation
16taxes and file returns for the subsequent year. If at the end
17of a one-year period a marketplace facilitator that was
18required to collect and remit the tax imposed under this Act
19determines that he or she did not meet the criteria in either
20paragraph (1) or (2) during the preceding 12-month period, the
21marketplace facilitator shall subsequently determine on a
22quarterly basis, ending on the last day of March, June,
23September, and December, whether he or she meets the criteria
24of either paragraph (1) or (2) for the preceding 12-month
25period.
26    A marketplace facilitator shall be entitled to any

 

 

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1credits, deductions, or adjustments to the sales price
2otherwise provided to the marketplace seller, in addition to
3any such adjustments provided directly to the marketplace
4facilitator. This Section pertains to, but is not limited to,
5adjustments such as discounts, coupons, and rebates. In
6addition, a marketplace facilitator shall be entitled to the
7retailers' discount provided in Section 3 of the Retailers'
8Occupation Tax Act on all marketplace sales, and the
9marketplace seller shall not include sales made through a
10marketplace facilitator when computing any retailers' discount
11on remaining sales. Marketplace facilitators shall report and
12remit the applicable State and local retailers' occupation
13taxes on sales facilitated for marketplace sellers separately
14from any sales or use tax collected on taxable retail sales
15made directly by the marketplace facilitator or its
16affiliates.
17    The marketplace facilitator is liable for the remittance
18of all applicable State retailers' occupation taxes under this
19Act and local retailers' occupation taxes administered by the
20Department on sales through the marketplace and is subject to
21audit on all such sales. The Department shall not audit
22marketplace sellers for their marketplace sales where a
23marketplace facilitator remitted the applicable State and
24local retailers' occupation taxes unless the marketplace
25facilitator seeks relief as a result of incorrect information
26provided to the marketplace facilitator by a marketplace

 

 

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1seller as set forth in this Section. The marketplace
2facilitator shall not be held liable for tax on any sales made
3by a marketplace seller that take place outside of the
4marketplace and which are not a part of any agreement between a
5marketplace facilitator and a marketplace seller. In addition,
6marketplace facilitators shall not be held liable to State and
7local governments of Illinois for having charged and remitted
8an incorrect amount of State and local retailers' occupation
9tax if, at the time of the sale, the tax is computed based on
10erroneous data provided by the State in database files on tax
11rates, boundaries, or taxing jurisdictions or incorrect
12information provided to the marketplace facilitator by the
13marketplace seller.
14    (d) A marketplace facilitator shall:
15        (1) certify to each marketplace seller that the
16    marketplace facilitator assumes the rights and duties of a
17    retailer under this Act with respect to sales made by the
18    marketplace seller through the marketplace; and
19        (2) remit taxes imposed by this Act as required by
20    this Act for sales made through the marketplace.
21    (e) A marketplace seller shall retain books and records
22for all sales made through a marketplace in accordance with
23the requirements of this Act.
24    (f) A marketplace facilitator is subject to audit on all
25marketplace sales for which it is considered to be the
26retailer, but shall not be liable for tax or subject to audit

 

 

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1on sales made by marketplace sellers outside of the
2marketplace.
3    (g) A marketplace facilitator required to collect taxes
4imposed under the Use Tax Act on marketplace sales made to
5Illinois purchasers shall be liable to the Department for such
6taxes, except when the marketplace facilitator is relieved of
7the duty to remit such taxes by virtue of having paid to the
8Department taxes imposed by this Act in accordance with this
9Section upon his or her gross receipts from such sales.
10    (h) Nothing in this Section shall allow the Department to
11collect retailers' occupation taxes from both the marketplace
12facilitator and marketplace seller on the same transaction.
13    (i) If, for any reason, the Department is prohibited from
14enforcing the marketplace facilitator's duty under this Act to
15remit taxes pursuant to this Section, the duty to remit such
16taxes remains with the marketplace seller.
17    (j) Nothing in this Section affects the obligation of any
18consumer to remit use tax for any taxable transaction for
19which a certified service provider acting on behalf of a
20remote retailer or a marketplace facilitator does not collect
21and remit the appropriate tax.
22    (k) Nothing in this Section shall allow the Department to
23collect the retailers' occupation tax from both the
24marketplace facilitator and the marketplace seller.
25(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
 

 

 

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1    (35 ILCS 120/2-5)
2    Sec. 2-5. Exemptions. Gross receipts from proceeds from
3the sale, which, on and after January 1, 2025, includes the
4lease, of the following tangible personal property are exempt
5from the tax imposed by this Act:
6        (1) Farm chemicals.
7        (2) Farm machinery and equipment, both new and used,
8    including that manufactured on special order, certified by
9    the purchaser to be used primarily for production
10    agriculture or State or federal agricultural programs,
11    including individual replacement parts for the machinery
12    and equipment, including machinery and equipment purchased
13    for lease, and including implements of husbandry defined
14    in Section 1-130 of the Illinois Vehicle Code, farm
15    machinery and agricultural chemical and fertilizer
16    spreaders, and nurse wagons required to be registered
17    under Section 3-809 of the Illinois Vehicle Code, but
18    excluding other motor vehicles required to be registered
19    under the Illinois Vehicle Code. Horticultural polyhouses
20    or hoop houses used for propagating, growing, or
21    overwintering plants shall be considered farm machinery
22    and equipment under this item (2). Agricultural chemical
23    tender tanks and dry boxes shall include units sold
24    separately from a motor vehicle required to be licensed
25    and units sold mounted on a motor vehicle required to be
26    licensed, if the selling price of the tender is separately

 

 

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1    stated.
2        Farm machinery and equipment shall include precision
3    farming equipment that is installed or purchased to be
4    installed on farm machinery and equipment including, but
5    not limited to, tractors, harvesters, sprayers, planters,
6    seeders, or spreaders. Precision farming equipment
7    includes, but is not limited to, soil testing sensors,
8    computers, monitors, software, global positioning and
9    mapping systems, and other such equipment.
10        Farm machinery and equipment also includes computers,
11    sensors, software, and related equipment used primarily in
12    the computer-assisted operation of production agriculture
13    facilities, equipment, and activities such as, but not
14    limited to, the collection, monitoring, and correlation of
15    animal and crop data for the purpose of formulating animal
16    diets and agricultural chemicals.
17        Beginning on January 1, 2024, farm machinery and
18    equipment also includes electrical power generation
19    equipment used primarily for production agriculture.
20        This item (2) is exempt from the provisions of Section
21    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

 

 

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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

 

 

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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) Except as otherwise provided in this Section,
26    personal property sold to a governmental body, to a

 

 

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

 

 

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1    Through June 30, 2005, this exemption applies to repair
2    and replacement parts added after the initial purchase of
3    such a motor vehicle if that motor vehicle is used in a
4    manner that would qualify for the rolling stock exemption
5    otherwise provided for in this Act. For purposes of this
6    paragraph, "used for commercial purposes" means the
7    transportation of persons or property in furtherance of
8    any commercial or industrial enterprise whether for-hire
9    or not.
10        (13) Proceeds from sales to owners or , lessors,
11    lessees, or shippers of tangible personal property that is
12    utilized by interstate carriers for hire for use as
13    rolling stock moving in interstate commerce and equipment
14    operated by a telecommunications provider, licensed as a
15    common carrier by the Federal Communications Commission,
16    which is permanently installed in or affixed to aircraft
17    moving in interstate commerce.
18        (14) Machinery and equipment that will be used by the
19    purchaser, or a lessee of the purchaser, primarily in the
20    process of manufacturing or assembling tangible personal
21    property for wholesale or retail sale or lease, whether
22    the sale or lease is made directly by the manufacturer or
23    by some other person, whether the materials used in the
24    process are owned by the manufacturer or some other
25    person, or whether the sale or lease is made apart from or
26    as an incident to the seller's engaging in the service

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    2016, tangible personal property purchased from an
2    Illinois retailer by a taxpayer engaged in centralized
3    purchasing activities in Illinois who will, upon receipt
4    of the property in Illinois, temporarily store the
5    property in Illinois (i) for the purpose of subsequently
6    transporting it outside this State for use or consumption
7    thereafter solely outside this State or (ii) for the
8    purpose of being processed, fabricated, or manufactured
9    into, attached to, or incorporated into other tangible
10    personal property to be transported outside this State and
11    thereafter used or consumed solely outside this State. The
12    Director of Revenue shall, pursuant to rules adopted in
13    accordance with the Illinois Administrative Procedure Act,
14    issue a permit to any taxpayer in good standing with the
15    Department who is eligible for the exemption under this
16    paragraph (38). The permit issued under this paragraph
17    (38) shall authorize the holder, to the extent and in the
18    manner specified in the rules adopted under this Act, to
19    purchase tangible personal property from a retailer exempt
20    from the taxes imposed by this Act. Taxpayers shall
21    maintain all necessary books and records to substantiate
22    the use and consumption of all such tangible personal
23    property outside of the State of Illinois.
24        (39) Beginning January 1, 2008, tangible personal
25    property used in the construction or maintenance of a
26    community water supply, as defined under Section 3.145 of

 

 

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

 

 

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1    aircraft and who (i) hold an Air Agency Certificate and
2    are empowered to operate an approved repair station by the
3    Federal Aviation Administration, (ii) have a Class IV
4    Rating, and (iii) conduct operations in accordance with
5    Part 145 of the Federal Aviation Regulations. The
6    exemption does not include aircraft operated by a
7    commercial air carrier providing scheduled passenger air
8    service pursuant to authority issued under Part 121 or
9    Part 129 of the Federal Aviation Regulations. From January
10    1, 2024 through December 31, 2029, this exemption applies
11    only to the use of qualifying tangible personal property
12    by: (A) persons who modify, refurbish, complete, repair,
13    replace, or maintain aircraft and who (i) hold an Air
14    Agency Certificate and are empowered to operate an
15    approved repair station by the Federal Aviation
16    Administration, (ii) have a Class IV Rating, and (iii)
17    conduct operations in accordance with Part 145 of the
18    Federal Aviation Regulations; and (B) persons who engage
19    in the modification, replacement, repair, and maintenance
20    of aircraft engines or power plants without regard to
21    whether or not those persons meet the qualifications of
22    item (A).
23        The changes made to this paragraph (40) by Public Act
24    98-534 are declarative of existing law. It is the intent
25    of the General Assembly that the exemption under this
26    paragraph (40) applies continuously from January 1, 2010

 

 

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1    through December 31, 2024; however, no claim for credit or
2    refund is allowed for taxes paid as a result of the
3    disallowance of this exemption on or after January 1, 2015
4    and prior to February 5, 2020 (the effective date of
5    Public Act 101-629).
6        (41) Tangible personal property sold to a
7    public-facilities corporation, as described in Section
8    11-65-10 of the Illinois Municipal Code, for purposes of
9    constructing or furnishing a municipal convention hall,
10    but only if the legal title to the municipal convention
11    hall is transferred to the municipality without any
12    further consideration by or on behalf of the municipality
13    at the time of the completion of the municipal convention
14    hall or upon the retirement or redemption of any bonds or
15    other debt instruments issued by the public-facilities
16    corporation in connection with the development of the
17    municipal convention hall. This exemption includes
18    existing public-facilities corporations as provided in
19    Section 11-65-25 of the Illinois Municipal Code. This
20    paragraph is exempt from the provisions of Section 2-70.
21        (42) Beginning January 1, 2017 and through December
22    31, 2026, menstrual pads, tampons, and menstrual cups.
23        (43) Merchandise that is subject to the Rental
24    Purchase Agreement Occupation and Use Tax. The purchaser
25    must certify that the item is purchased to be rented
26    subject to a rental-purchase rental purchase agreement, as

 

 

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

 

 

10300HB4951sam002- 538 -LRB103 38094 HLH 74177 a

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

 

 

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

 

 

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1    collection and storage supplies, and breast pump kits.
2    This item (46) is exempt from the provisions of Section
3    2-70. As used in this item (46):
4        "Breast pump" means an electrically controlled or
5    manually controlled pump device designed or marketed to be
6    used to express milk from a human breast during lactation,
7    including the pump device and any battery, AC adapter, or
8    other power supply unit that is used to power the pump
9    device and is packaged and sold with the pump device at the
10    time of sale.
11        "Breast pump collection and storage supplies" means
12    items of tangible personal property designed or marketed
13    to be used in conjunction with a breast pump to collect
14    milk expressed from a human breast and to store collected
15    milk until it is ready for consumption.
16        "Breast pump collection and storage supplies"
17    includes, but is not limited to: breast shields and breast
18    shield connectors; breast pump tubes and tubing adapters;
19    breast pump valves and membranes; backflow protectors and
20    backflow protector adaptors; bottles and bottle caps
21    specific to the operation of the breast pump; and breast
22    milk storage bags.
23        "Breast pump collection and storage supplies" does not
24    include: (1) bottles and bottle caps not specific to the
25    operation of the breast pump; (2) breast pump travel bags
26    and other similar carrying accessories, including ice

 

 

10300HB4951sam002- 541 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 542 -LRB103 38094 HLH 74177 a

1    documenting that the transaction is eligible for the
2    exemption under this paragraph. Retailers must keep the
3    form as documentation of the exemption in their records
4    for a period of not less than 6 years. "Armed forces of the
5    United States" means the United States Army, Navy, Air
6    Force, Marine Corps, or Coast Guard. This paragraph is
7    exempt from the provisions of Section 2-70.
8        (49) Gross receipts from the lease of the following
9    tangible personal property:
10            (1) computer software transferred subject to a
11        license that meets the following requirements:
12                (A) it is evidenced by a written agreement
13            signed by the licensor and the customer;
14                    (i) an electronic agreement in which the
15                customer accepts the license by means of an
16                electronic signature that is verifiable and
17                can be authenticated and is attached to or
18                made part of the license will comply with this
19                requirement;
20                    (ii) a license agreement in which the
21                customer electronically accepts the terms by
22                clicking "I agree" does not comply with this
23                requirement;
24                (B) it restricts the customer's duplication
25            and use of the software;
26                (C) it prohibits the customer from licensing,

 

 

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1            sublicensing, or transferring the software to a
2            third party (except to a related party) without
3            the permission and continued control of the
4            licensor;
5                (D) the licensor has a policy of providing
6            another copy at minimal or no charge if the
7            customer loses or damages the software, or of
8            permitting the licensee to make and keep an
9            archival copy, and such policy is either stated in
10            the license agreement, supported by the licensor's
11            books and records, or supported by a notarized
12            statement made under penalties of perjury by the
13            licensor; and
14                (E) the customer must destroy or return all
15            copies of the software to the licensor at the end
16            of the license period; this provision is deemed to
17            be met, in the case of a perpetual license,
18            without being set forth in the license agreement;
19            and
20            (2) property that is subject to a tax on lease
21        receipts imposed by a home rule unit of local
22        government if the ordinance imposing that tax was
23        adopted prior to January 1, 2023.
24(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
25102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
26Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.

 

 

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15-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
25-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
36-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
412-12-23.)
 
5    (35 ILCS 120/2-10)
6    Sec. 2-10. Rate of tax. Unless otherwise provided in this
7Section, the tax imposed by this Act is at the rate of 6.25% of
8gross receipts from sales, which, on and after January 1,
92025, includes leases, of tangible personal property made in
10the course of business.
11    Beginning on July 1, 2000 and through December 31, 2000,
12with respect to motor fuel, as defined in Section 1.1 of the
13Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
14the Use Tax Act, the tax is imposed at the rate of 1.25%.
15    Beginning on August 6, 2010 through August 15, 2010, and
16beginning again on August 5, 2022 through August 14, 2022,
17with respect to sales tax holiday items as defined in Section
182-8 of this Act, the tax is imposed at the rate of 1.25%.
19    Within 14 days after July 1, 2000 (the effective date of
20Public Act 91-872), each retailer of motor fuel and gasohol
21shall cause the following notice to be posted in a prominently
22visible place on each retail dispensing device that is used to
23dispense motor fuel or gasohol in the State of Illinois: "As of
24July 1, 2000, the State of Illinois has eliminated the State's
25share of sales tax on motor fuel and gasohol through December

 

 

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131, 2000. The price on this pump should reflect the
2elimination of the tax." The notice shall be printed in bold
3print on a sign that is no smaller than 4 inches by 8 inches.
4The sign shall be clearly visible to customers. Any retailer
5who fails to post or maintain a required sign through December
631, 2000 is guilty of a petty offense for which the fine shall
7be $500 per day per each retail premises where a violation
8occurs.
9    With respect to gasohol, as defined in the Use Tax Act, the
10tax imposed by this Act applies to (i) 70% of the proceeds of
11sales made on or after January 1, 1990, and before July 1,
122003, (ii) 80% of the proceeds of sales made on or after July
131, 2003 and on or before July 1, 2017, (iii) 100% of the
14proceeds of sales made after July 1, 2017 and prior to January
151, 2024, (iv) 90% of the proceeds of sales made on or after
16January 1, 2024 and on or before December 31, 2028, and (v)
17100% of the proceeds of sales made after December 31, 2028. If,
18at any time, however, the tax under this Act on sales of
19gasohol, as defined in the Use Tax Act, is imposed at the rate
20of 1.25%, then the tax imposed by this Act applies to 100% of
21the proceeds of sales of gasohol made during that time.
22    With respect to mid-range ethanol blends, as defined in
23Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
24applies to (i) 80% of the proceeds of sales made on or after
25January 1, 2024 and on or before December 31, 2028 and (ii)
26100% of the proceeds of sales made after December 31, 2028. If,

 

 

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1at any time, however, the tax under this Act on sales of
2mid-range ethanol blends is imposed at the rate of 1.25%, then
3the tax imposed by this Act applies to 100% of the proceeds of
4sales of mid-range ethanol blends made during that time.
5    With respect to majority blended ethanol fuel, as defined
6in the Use Tax Act, the tax imposed by this Act does not apply
7to the proceeds of sales made on or after July 1, 2003 and on
8or before December 31, 2028 but applies to 100% of the proceeds
9of sales made thereafter.
10    With respect to biodiesel blends, as defined in the Use
11Tax Act, with no less than 1% and no more than 10% biodiesel,
12the tax imposed by this Act applies to (i) 80% of the proceeds
13of sales made on or after July 1, 2003 and on or before
14December 31, 2018 and (ii) 100% of the proceeds of sales made
15after December 31, 2018 and before January 1, 2024. On and
16after January 1, 2024 and on or before December 31, 2030, the
17taxation of biodiesel, renewable diesel, and biodiesel blends
18shall be as provided in Section 3-5.1 of the Use Tax Act. If,
19at any time, however, the tax under this Act on sales of
20biodiesel blends, as defined in the Use Tax Act, with no less
21than 1% and no more than 10% biodiesel is imposed at the rate
22of 1.25%, then the tax imposed by this Act applies to 100% of
23the proceeds of sales of biodiesel blends with no less than 1%
24and no more than 10% biodiesel made during that time.
25    With respect to biodiesel, as defined in the Use Tax Act,
26and biodiesel blends, as defined in the Use Tax Act, with more

 

 

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

 

 

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

 

 

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

 

 

10300HB4951sam002- 550 -LRB103 38094 HLH 74177 a

1label includes:
2        (A) a "Drug Facts" panel; or
3        (B) a statement of the "active ingredient(s)" with a
4    list of those ingredients contained in the compound,
5    substance or preparation.
6    Beginning on January 1, 2014 (the effective date of Public
7Act 98-122), "prescription and nonprescription medicines and
8drugs" includes medical cannabis purchased from a registered
9dispensing organization under the Compassionate Use of Medical
10Cannabis Program Act.
11    As used in this Section, "adult use cannabis" means
12cannabis subject to tax under the Cannabis Cultivation
13Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
14and does not include cannabis subject to tax under the
15Compassionate Use of Medical Cannabis Program Act.
16(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
17Section 20-20, eff. 4-19-22; 102-700, Article 60, Section
1860-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff.
194-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
 
20    (35 ILCS 120/2-12)
21    Sec. 2-12. Location where retailer is deemed to be engaged
22in the business of selling. The purpose of this Section is to
23specify where a retailer is deemed to be engaged in the
24business of selling tangible personal property for the
25purposes of this Act, the Use Tax Act, the Service Use Tax Act,

 

 

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1and the Service Occupation Tax Act, and for the purpose of
2collecting any other local retailers' occupation tax
3administered by the Department. This Section applies only with
4respect to the particular selling activities described in the
5following paragraphs. The provisions of this Section are not
6intended to, and shall not be interpreted to, affect where a
7retailer is deemed to be engaged in the business of selling
8with respect to any activity that is not specifically
9described in the following paragraphs.
10        (1) If a purchaser who is present at the retailer's
11    place of business, having no prior commitment to the
12    retailer, agrees to purchase and makes payment for
13    tangible personal property at the retailer's place of
14    business, then the transaction shall be deemed an
15    over-the-counter sale occurring at the retailer's same
16    place of business where the purchaser was present and made
17    payment for that tangible personal property if the
18    retailer regularly stocks the purchased tangible personal
19    property or similar tangible personal property in the
20    quantity, or similar quantity, for sale at the retailer's
21    same place of business and then either (i) the purchaser
22    takes possession of the tangible personal property at the
23    same place of business or (ii) the retailer delivers or
24    arranges for the tangible personal property to be
25    delivered to the purchaser.
26        (2) If a purchaser, having no prior commitment to the

 

 

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1    retailer, agrees to purchase tangible personal property
2    and makes payment over the phone, in writing, or via the
3    Internet and takes possession of the tangible personal
4    property at the retailer's place of business, then the
5    sale shall be deemed to have occurred at the retailer's
6    place of business where the purchaser takes possession of
7    the property if the retailer regularly stocks the item or
8    similar items in the quantity, or similar quantities,
9    purchased by the purchaser.
10        (3) A retailer is deemed to be engaged in the business
11    of selling food, beverages, or other tangible personal
12    property through a vending machine at the location where
13    the vending machine is located at the time the sale is made
14    if (i) the vending machine is a device operated by coin,
15    currency, credit card, token, coupon or similar device;
16    (2) the food, beverage or other tangible personal property
17    is contained within the vending machine and dispensed from
18    the vending machine; and (3) the purchaser takes
19    possession of the purchased food, beverage or other
20    tangible personal property immediately.
21        (4) Minerals. A producer of coal or other mineral
22    mined in Illinois is deemed to be engaged in the business
23    of selling at the place where the coal or other mineral
24    mined in Illinois is extracted from the earth. With
25    respect to minerals (i) the term "extracted from the
26    earth" means the location at which the coal or other

 

 

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1    mineral is extracted from the mouth of the mine, and (ii) a
2    "mineral" includes not only coal, but also oil, sand,
3    stone taken from a quarry, gravel and any other thing
4    commonly regarded as a mineral and extracted from the
5    earth. This paragraph does not apply to coal or another
6    mineral when it is delivered or shipped by the seller to
7    the purchaser at a point outside Illinois so that the sale
8    is exempt under the United States Constitution as a sale
9    in interstate or foreign commerce.
10        (5) A retailer selling tangible personal property to a
11    nominal lessee or bailee pursuant to a lease with a dollar
12    or other nominal option to purchase is engaged in the
13    business of selling at the location where the property is
14    first delivered to the lessee or bailee for its intended
15    use.
16        (5.5) Lease transactions. The lease of tangible
17    personal property that is subject to the tax on leases
18    under this amendatory Act of the 103rd General Assembly is
19    sourced as follows:
20            (i) For a lease that requires recurring periodic
21        payments and for which the property is delivered to
22        the lessee by the lessor, each periodic payment is
23        sourced to the primary property location for each
24        period covered by the payment. The primary property
25        location shall be as indicated by an address for the
26        property provided by the lessee that is available to

 

 

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1        the lessor from its records maintained in the ordinary
2        course of business, when use of this address does not
3        constitute bad faith. The property location is not
4        altered by intermittent use at different locations,
5        such as use of business property that accompanies
6        employees on business trips and service calls.
7            (ii) For all other leases, including a lease that
8        does not require recurring periodic payments and any
9        lease for which the lessee takes possession of the
10        property at the lessor's place of business, the
11        payment is sourced as otherwise provided under this
12        Act for sales at retail other than leases.
13        (6) Beginning on January 1, 2021, a remote retailer
14    making retail sales of tangible personal property that
15    meet or exceed the thresholds established in paragraph (1)
16    or (2) of subsection (b) of Section 2 of this Act is
17    engaged in the business of selling at the Illinois
18    location to which the tangible personal property is
19    shipped or delivered or at which possession is taken by
20    the purchaser.
21        (7) Beginning January 1, 2021, a marketplace
22    facilitator facilitating sales of tangible personal
23    property that meet or exceed one of the thresholds
24    established in paragraph (1) or (2) of subsection (c) of
25    Section 2 of this Act is deemed to be engaged in the
26    business of selling at the Illinois location to which the

 

 

10300HB4951sam002- 555 -LRB103 38094 HLH 74177 a

1    tangible personal property is shipped or delivered or at
2    which possession is taken by the purchaser when the sale
3    is made by a marketplace seller on the marketplace
4    facilitator's marketplace.
5(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
 
6    (35 ILCS 120/2a)  (from Ch. 120, par. 441a)
7    Sec. 2a. Registration of retailers. It is unlawful for any
8person to engage in the business of selling, which, on and
9after January 1, 2025, includes leasing, tangible personal
10property at retail in this State without a certificate of
11registration from the Department. Application for a
12certificate of registration shall be made to the Department
13upon forms furnished by it. Each such application shall be
14signed and verified and shall state: (1) the name and social
15security number of the applicant; (2) the address of his
16principal place of business; (3) the address of the principal
17place of business from which he engages in the business of
18selling tangible personal property at retail in this State and
19the addresses of all other places of business, if any
20(enumerating such addresses, if any, in a separate list
21attached to and made a part of the application), from which he
22engages in the business of selling tangible personal property
23at retail in this State; (4) the name and address of the person
24or persons who will be responsible for filing returns and
25payment of taxes due under this Act; (5) in the case of a

 

 

10300HB4951sam002- 556 -LRB103 38094 HLH 74177 a

1publicly traded corporation, the name and title of the Chief
2Financial Officer, Chief Operating Officer, and any other
3officer or employee with responsibility for preparing tax
4returns under this Act, and, in the case of all other
5corporations, the name, title, and social security number of
6each corporate officer; (6) in the case of a limited liability
7company, the name, social security number, and FEIN number of
8each manager and member; and (7) such other information as the
9Department may reasonably require. The application shall
10contain an acceptance of responsibility signed by the person
11or persons who will be responsible for filing returns and
12payment of the taxes due under this Act. If the applicant will
13sell tangible personal property at retail through vending
14machines, his application to register shall indicate the
15number of vending machines to be so operated. If requested by
16the Department at any time, that person shall verify the total
17number of vending machines he or she uses in his or her
18business of selling tangible personal property at retail.
19    The Department shall provide by rule for an expedited
20business registration process for remote retailers required to
21register and file under subsection (b) of Section 2 who use a
22certified service provider to file their returns under this
23Act. Such expedited registration process shall allow the
24Department to register a taxpayer based upon the same
25registration information required by the Streamlined Sales Tax
26Governing Board for states participating in the Streamlined

 

 

10300HB4951sam002- 557 -LRB103 38094 HLH 74177 a

1Sales Tax Project.
2    The Department may deny a certificate of registration to
3any applicant if a person who is named as the owner, a partner,
4a manager or member of a limited liability company, or a
5corporate officer of the applicant on the application for the
6certificate of registration is or has been named as the owner,
7a partner, a manager or member of a limited liability company,
8or a corporate officer on the application for the certificate
9of registration of another retailer that (i) is in default for
10moneys due under this Act or any other tax or fee Act
11administered by the Department or (ii) fails to file any
12return, on or before the due date prescribed for filing that
13return (including any extensions of time granted by the
14Department), that the retailer is required to file under this
15Act or any other tax or fee Act administered by the Department.
16For purposes of this paragraph only, in determining whether a
17person is in default for moneys due, the Department shall
18include only amounts established as a final liability within
19the 23 years prior to the date of the Department's notice of
20denial of a certificate of registration.
21    The Department may require an applicant for a certificate
22of registration hereunder to, at the time of filing such
23application, furnish a bond from a surety company authorized
24to do business in the State of Illinois, or an irrevocable bank
25letter of credit or a bond signed by 2 personal sureties who
26have filed, with the Department, sworn statements disclosing

 

 

10300HB4951sam002- 558 -LRB103 38094 HLH 74177 a

1net assets equal to at least 3 times the amount of the bond to
2be required of such applicant, or a bond secured by an
3assignment of a bank account or certificate of deposit, stocks
4or bonds, conditioned upon the applicant paying to the State
5of Illinois all moneys becoming due under this Act and under
6any other State tax law or municipal or county tax ordinance or
7resolution under which the certificate of registration that is
8issued to the applicant under this Act will permit the
9applicant to engage in business without registering separately
10under such other law, ordinance or resolution. In making a
11determination as to whether to require a bond or other
12security, the Department shall take into consideration whether
13the owner, any partner, any manager or member of a limited
14liability company, or a corporate officer of the applicant is
15or has been the owner, a partner, a manager or member of a
16limited liability company, or a corporate officer of another
17retailer that is in default for moneys due under this Act or
18any other tax or fee Act administered by the Department; and
19whether the owner, any partner, any manager or member of a
20limited liability company, or a corporate officer of the
21applicant is or has been the owner, a partner, a manager or
22member of a limited liability company, or a corporate officer
23of another retailer whose certificate of registration has been
24revoked within the previous 5 years under this Act or any other
25tax or fee Act administered by the Department. If a bond or
26other security is required, the Department shall fix the

 

 

10300HB4951sam002- 559 -LRB103 38094 HLH 74177 a

1amount of the bond or other security, taking into
2consideration the amount of money expected to become due from
3the applicant under this Act and under any other State tax law
4or municipal or county tax ordinance or resolution under which
5the certificate of registration that is issued to the
6applicant under this Act will permit the applicant to engage
7in business without registering separately under such other
8law, ordinance, or resolution. The amount of security required
9by the Department shall be such as, in its opinion, will
10protect the State of Illinois against failure to pay the
11amount which may become due from the applicant under this Act
12and under any other State tax law or municipal or county tax
13ordinance or resolution under which the certificate of
14registration that is issued to the applicant under this Act
15will permit the applicant to engage in business without
16registering separately under such other law, ordinance or
17resolution, but the amount of the security required by the
18Department shall not exceed three times the amount of the
19applicant's average monthly tax liability, or $50,000.00,
20whichever amount is lower.
21    No certificate of registration under this Act shall be
22issued by the Department until the applicant provides the
23Department with satisfactory security, if required, as herein
24provided for.
25    Upon receipt of the application for certificate of
26registration in proper form, and upon approval by the

 

 

10300HB4951sam002- 560 -LRB103 38094 HLH 74177 a

1Department of the security furnished by the applicant, if
2required, the Department shall issue to such applicant a
3certificate of registration which shall permit the person to
4whom it is issued to engage in the business of selling tangible
5personal property at retail in this State. The certificate of
6registration shall be conspicuously displayed at the place of
7business which the person so registered states in his
8application to be the principal place of business from which
9he engages in the business of selling tangible personal
10property at retail in this State.
11    No certificate of registration issued prior to July 1,
122017 to a taxpayer who files returns required by this Act on a
13monthly basis or renewed prior to July 1, 2017 by a taxpayer
14who files returns required by this Act on a monthly basis shall
15be valid after the expiration of 5 years from the date of its
16issuance or last renewal. No certificate of registration
17issued on or after July 1, 2017 to a taxpayer who files returns
18required by this Act on a monthly basis or renewed on or after
19July 1, 2017 by a taxpayer who files returns required by this
20Act on a monthly basis shall be valid after the expiration of
21one year from the date of its issuance or last renewal. The
22expiration date of a sub-certificate of registration shall be
23that of the certificate of registration to which the
24sub-certificate relates. Prior to July 1, 2017, a certificate
25of registration shall automatically be renewed, subject to
26revocation as provided by this Act, for an additional 5 years

 

 

10300HB4951sam002- 561 -LRB103 38094 HLH 74177 a

1from the date of its expiration unless otherwise notified by
2the Department as provided by this paragraph. On and after
3July 1, 2017, a certificate of registration shall
4automatically be renewed, subject to revocation as provided by
5this Act, for an additional one year from the date of its
6expiration unless otherwise notified by the Department as
7provided by this paragraph.
8    Where a taxpayer to whom a certificate of registration is
9issued under this Act is in default to the State of Illinois
10for delinquent returns or for moneys due under this Act or any
11other State tax law or municipal or county ordinance
12administered or enforced by the Department, the Department
13shall, not less than 60 days before the expiration date of such
14certificate of registration, give notice to the taxpayer to
15whom the certificate was issued of the account period of the
16delinquent returns, the amount of tax, penalty and interest
17due and owing from the taxpayer, and that the certificate of
18registration shall not be automatically renewed upon its
19expiration date unless the taxpayer, on or before the date of
20expiration, has filed and paid the delinquent returns or paid
21the defaulted amount in full. A taxpayer to whom such a notice
22is issued shall be deemed an applicant for renewal. The
23Department shall promulgate regulations establishing
24procedures for taxpayers who file returns on a monthly basis
25but desire and qualify to change to a quarterly or yearly
26filing basis and will no longer be subject to renewal under

 

 

10300HB4951sam002- 562 -LRB103 38094 HLH 74177 a

1this Section, and for taxpayers who file returns on a yearly or
2quarterly basis but who desire or are required to change to a
3monthly filing basis and will be subject to renewal under this
4Section.
5    The Department may in its discretion approve renewal by an
6applicant who is in default if, at the time of application for
7renewal, the applicant files all of the delinquent returns or
8pays to the Department such percentage of the defaulted amount
9as may be determined by the Department and agrees in writing to
10waive all limitations upon the Department for collection of
11the remaining defaulted amount to the Department over a period
12not to exceed 5 years from the date of renewal of the
13certificate; however, no renewal application submitted by an
14applicant who is in default shall be approved if the
15immediately preceding renewal by the applicant was conditioned
16upon the installment payment agreement described in this
17Section. The payment agreement herein provided for shall be in
18addition to and not in lieu of the security that may be
19required by this Section of a taxpayer who is no longer
20considered a prior continuous compliance taxpayer. The
21execution of the payment agreement as provided in this Act
22shall not toll the accrual of interest at the statutory rate.
23    The Department may suspend a certificate of registration
24if the Department finds that the person to whom the
25certificate of registration has been issued knowingly sold
26contraband cigarettes.

 

 

10300HB4951sam002- 563 -LRB103 38094 HLH 74177 a

1    A certificate of registration issued under this Act more
2than 5 years before January 1, 1990 (the effective date of
3Public Act 86-383) shall expire and be subject to the renewal
4provisions of this Section on the next anniversary of the date
5of issuance of such certificate which occurs more than 6
6months after January 1, 1990 (the effective date of Public Act
786-383). A certificate of registration issued less than 5
8years before January 1, 1990 (the effective date of Public Act
986-383) shall expire and be subject to the renewal provisions
10of this Section on the 5th anniversary of the issuance of the
11certificate.
12    If the person so registered states that he operates other
13places of business from which he engages in the business of
14selling tangible personal property at retail in this State,
15the Department shall furnish him with a sub-certificate of
16registration for each such place of business, and the
17applicant shall display the appropriate sub-certificate of
18registration at each such place of business. All
19sub-certificates of registration shall bear the same
20registration number as that appearing upon the certificate of
21registration to which such sub-certificates relate.
22    If the applicant will sell tangible personal property at
23retail through vending machines, the Department shall furnish
24him with a sub-certificate of registration for each such
25vending machine, and the applicant shall display the
26appropriate sub-certificate of registration on each such

 

 

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1vending machine by attaching the sub-certificate of
2registration to a conspicuous part of such vending machine. If
3a person who is registered to sell tangible personal property
4at retail through vending machines adds an additional vending
5machine or additional vending machines to the number of
6vending machines he or she uses in his or her business of
7selling tangible personal property at retail, he or she shall
8notify the Department, on a form prescribed by the Department,
9to request an additional sub-certificate or additional
10sub-certificates of registration, as applicable. With each
11such request, the applicant shall report the number of
12sub-certificates of registration he or she is requesting as
13well as the total number of vending machines from which he or
14she makes retail sales.
15    Where the same person engages in 2 or more businesses of
16selling tangible personal property at retail in this State,
17which businesses are substantially different in character or
18engaged in under different trade names or engaged in under
19other substantially dissimilar circumstances (so that it is
20more practicable, from an accounting, auditing or bookkeeping
21standpoint, for such businesses to be separately registered),
22the Department may require or permit such person (subject to
23the same requirements concerning the furnishing of security as
24those that are provided for hereinbefore in this Section as to
25each application for a certificate of registration) to apply
26for and obtain a separate certificate of registration for each

 

 

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1such business or for any of such businesses, under a single
2certificate of registration supplemented by related
3sub-certificates of registration.
4    Any person who is registered under the Retailers'
5Occupation Tax Act as of March 8, 1963, and who, during the
63-year period immediately prior to March 8, 1963, or during a
7continuous 3-year period part of which passed immediately
8before and the remainder of which passes immediately after
9March 8, 1963, has been so registered continuously and who is
10determined by the Department not to have been either
11delinquent or deficient in the payment of tax liability during
12that period under this Act or under any other State tax law or
13municipal or county tax ordinance or resolution under which
14the certificate of registration that is issued to the
15registrant under this Act will permit the registrant to engage
16in business without registering separately under such other
17law, ordinance or resolution, shall be considered to be a
18Prior Continuous Compliance taxpayer. Also any taxpayer who
19has, as verified by the Department, faithfully and
20continuously complied with the condition of his bond or other
21security under the provisions of this Act for a period of 3
22consecutive years shall be considered to be a Prior Continuous
23Compliance taxpayer.
24    Every Prior Continuous Compliance taxpayer shall be exempt
25from all requirements under this Act concerning the furnishing
26of a bond or other security as a condition precedent to his

 

 

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1being authorized to engage in the business of selling tangible
2personal property at retail in this State. This exemption
3shall continue for each such taxpayer until such time as he may
4be determined by the Department to be delinquent in the filing
5of any returns, or is determined by the Department (either
6through the Department's issuance of a final assessment which
7has become final under the Act, or by the taxpayer's filing of
8a return which admits tax that is not paid to be due) to be
9delinquent or deficient in the paying of any tax under this Act
10or under any other State tax law or municipal or county tax
11ordinance or resolution under which the certificate of
12registration that is issued to the registrant under this Act
13will permit the registrant to engage in business without
14registering separately under such other law, ordinance or
15resolution, at which time that taxpayer shall become subject
16to all the financial responsibility requirements of this Act
17and, as a condition of being allowed to continue to engage in
18the business of selling tangible personal property at retail,
19may be required to post bond or other acceptable security with
20the Department covering liability which such taxpayer may
21thereafter incur. Any taxpayer who fails to pay an admitted or
22established liability under this Act may also be required to
23post bond or other acceptable security with this Department
24guaranteeing the payment of such admitted or established
25liability.
26    No certificate of registration shall be issued to any

 

 

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1person who is in default to the State of Illinois for moneys
2due under this Act or under any other State tax law or
3municipal or county tax ordinance or resolution under which
4the certificate of registration that is issued to the
5applicant under this Act will permit the applicant to engage
6in business without registering separately under such other
7law, ordinance or resolution.
8    Any person aggrieved by any decision of the Department
9under this Section may, within 20 days after notice of such
10decision, protest and request a hearing, whereupon the
11Department shall give notice to such person of the time and
12place fixed for such hearing and shall hold a hearing in
13conformity with the provisions of this Act and then issue its
14final administrative decision in the matter to such person. In
15the absence of such a protest within 20 days, the Department's
16decision shall become final without any further determination
17being made or notice given.
18    With respect to security other than bonds (upon which the
19Department may sue in the event of a forfeiture), if the
20taxpayer fails to pay, when due, any amount whose payment such
21security guarantees, the Department shall, after such
22liability is admitted by the taxpayer or established by the
23Department through the issuance of a final assessment that has
24become final under the law, convert the security which that
25taxpayer has furnished into money for the State, after first
26giving the taxpayer at least 10 days' written notice, by

 

 

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1registered or certified mail, to pay the liability or forfeit
2such security to the Department. If the security consists of
3stocks or bonds or other securities which are listed on a
4public exchange, the Department shall sell such securities
5through such public exchange. If the security consists of an
6irrevocable bank letter of credit, the Department shall
7convert the security in the manner provided for in the Uniform
8Commercial Code. If the security consists of a bank
9certificate of deposit, the Department shall convert the
10security into money by demanding and collecting the amount of
11such bank certificate of deposit from the bank which issued
12such certificate. If the security consists of a type of stocks
13or other securities which are not listed on a public exchange,
14the Department shall sell such security to the highest and
15best bidder after giving at least 10 days' notice of the date,
16time and place of the intended sale by publication in the
17"State Official Newspaper". If the Department realizes more
18than the amount of such liability from the security, plus the
19expenses incurred by the Department in converting the security
20into money, the Department shall pay such excess to the
21taxpayer who furnished such security, and the balance shall be
22paid into the State Treasury.
23    The Department shall discharge any surety and shall
24release and return any security deposited, assigned, pledged
25or otherwise provided to it by a taxpayer under this Section
26within 30 days after:

 

 

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1        (1) such taxpayer becomes a Prior Continuous
2    Compliance taxpayer; or
3        (2) such taxpayer has ceased to collect receipts on
4    which he is required to remit tax to the Department, has
5    filed a final tax return, and has paid to the Department an
6    amount sufficient to discharge his remaining tax
7    liability, as determined by the Department, under this Act
8    and under every other State tax law or municipal or county
9    tax ordinance or resolution under which the certificate of
10    registration issued under this Act permits the registrant
11    to engage in business without registering separately under
12    such other law, ordinance or resolution. The Department
13    shall make a final determination of the taxpayer's
14    outstanding tax liability as expeditiously as possible
15    after his final tax return has been filed; if the
16    Department cannot make such final determination within 45
17    days after receiving the final tax return, within such
18    period it shall so notify the taxpayer, stating its
19    reasons therefor.
20(Source: P.A. 102-40, eff. 6-25-21; 103-319, eff. 1-1-24.)
 
21    (35 ILCS 120/2c)  (from Ch. 120, par. 441c)
22    Sec. 2c. Resales of tangible personal property. If the
23purchaser is not registered with the Department as a taxpayer,
24but claims to be a reseller of the tangible personal property
25in such a way that such resales are not taxable under this Act

 

 

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1or under some other tax law which the Department may
2administer, such purchaser (except in the case of an
3out-of-State purchaser who will always resell and deliver the
4property to his customers outside Illinois) shall apply to the
5Department for a resale number. Such applicant shall state
6facts which will show the Department why such applicant is not
7liable for tax under this Act or under some other tax law which
8the Department may administer on any of his resales and shall
9furnish such additional information as the Department may
10reasonably require.
11    Upon approval of the application, the Department shall
12assign a resale number to the applicant and shall certify such
13number to him. The Department may cancel any such number which
14is obtained through misrepresentation, or which is used to
15make a purchase tax-free when the purchase in fact is not a
16purchase for resale, or which no longer applies because of the
17purchaser's having discontinued the making of tax exempt
18resales of the property.
19    The Department may restrict the use of the number to one
20year at a time or to some other definite period if the
21Department finds it impracticable or otherwise inadvisable to
22issue such numbers for indefinite periods.
23    Except as provided hereinabove in this Section, a sale
24shall be made tax-free on the ground of being a sale for resale
25if the purchaser has an active registration number or resale
26number from the Department and furnishes that number to the

 

 

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1seller in connection with certifying to the seller that any
2sale to such purchaser is nontaxable because of being a sale
3for resale. On and after January 1, 2025, a sale to a lessor of
4tangible personal property who is subject to the tax on leases
5implemented by this amendatory Act of the 103rd General
6Assembly, for the purpose of leasing that property, shall be
7made tax-free on the ground of being a sale for resale,
8provided the other provisions of this paragraph are met.
9    Failure to present an active registration number or resale
10number and a certification to the seller that a sale is for
11resale creates a presumption that a sale is not for resale.
12This presumption may be rebutted by other evidence that all of
13the seller's sales are sale for resale, or that a particular
14sale is a sale for resale.
15(Source: P.A. 83-1463.)
 
16    (35 ILCS 120/3)  (from Ch. 120, par. 442)
17    Sec. 3. Except as provided in this Section, on or before
18the twentieth day of each calendar month, every person engaged
19in the business of selling, which, on and after January 1,
202025, includes leasing, tangible personal property at retail
21in this State during the preceding calendar month shall file a
22return with the Department, stating:
23        1. The name of the seller;
24        2. His residence address and the address of his
25    principal place of business and the address of the

 

 

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1    principal place of business (if that is a different
2    address) from which he engages in the business of selling
3    tangible personal property at retail in this State;
4        3. Total amount of receipts received by him during the
5    preceding calendar month or quarter, as the case may be,
6    from sales of tangible personal property, and from
7    services furnished, by him during such preceding calendar
8    month or quarter;
9        4. Total amount received by him during the preceding
10    calendar month or quarter on charge and time sales of
11    tangible personal property, and from services furnished,
12    by him prior to the month or quarter for which the return
13    is filed;
14        5. Deductions allowed by law;
15        6. Gross receipts which were received by him during
16    the preceding calendar month or quarter and upon the basis
17    of which the tax is imposed, including gross receipts on
18    food for human consumption that is to be consumed off the
19    premises where it is sold (other than alcoholic beverages,
20    food consisting of or infused with adult use cannabis,
21    soft drinks, and food that has been prepared for immediate
22    consumption) which were received during the preceding
23    calendar month or quarter and upon which tax would have
24    been due but for the 0% rate imposed under Public Act
25    102-700;
26        7. The amount of credit provided in Section 2d of this

 

 

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1    Act;
2        8. The amount of tax due, including the amount of tax
3    that would have been due on food for human consumption
4    that is to be consumed off the premises where it is sold
5    (other than alcoholic beverages, food consisting of or
6    infused with adult use cannabis, soft drinks, and food
7    that has been prepared for immediate consumption) but for
8    the 0% rate imposed under Public Act 102-700;
9        9. The signature of the taxpayer; and
10        10. Such other reasonable information as the
11    Department may require.
12    In the case of leases, except as otherwise provided in
13this Act, the lessor must remit for each tax return period only
14the tax applicable to that part of the selling price actually
15received during such tax return period.
16    On and after January 1, 2018, except for returns required
17to be filed prior to January 1, 2023 for motor vehicles,
18watercraft, aircraft, and trailers that are required to be
19registered with an agency of this State, with respect to
20retailers whose annual gross receipts average $20,000 or more,
21all returns required to be filed pursuant to this Act shall be
22filed electronically. On and after January 1, 2023, with
23respect to retailers whose annual gross receipts average
24$20,000 or more, all returns required to be filed pursuant to
25this Act, including, but not limited to, returns for motor
26vehicles, watercraft, aircraft, and trailers that are required

 

 

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1to be registered with an agency of this State, shall be filed
2electronically. Retailers who demonstrate that they do not
3have access to the Internet or demonstrate hardship in filing
4electronically may petition the Department to waive the
5electronic filing requirement.
6    If a taxpayer fails to sign a return within 30 days after
7the proper notice and demand for signature by the Department,
8the return shall be considered valid and any amount shown to be
9due on the return shall be deemed assessed.
10    Each return shall be accompanied by the statement of
11prepaid tax issued pursuant to Section 2e for which credit is
12claimed.
13    Prior to October 1, 2003, and on and after September 1,
142004, a retailer may accept a Manufacturer's Purchase Credit
15certification from a purchaser in satisfaction of Use Tax as
16provided in Section 3-85 of the Use Tax Act if the purchaser
17provides the appropriate documentation as required by Section
183-85 of the Use Tax Act. A Manufacturer's Purchase Credit
19certification, accepted by a retailer prior to October 1, 2003
20and on and after September 1, 2004 as provided in Section 3-85
21of the Use Tax Act, may be used by that retailer to satisfy
22Retailers' Occupation Tax liability in the amount claimed in
23the certification, not to exceed 6.25% of the receipts subject
24to tax from a qualifying purchase. A Manufacturer's Purchase
25Credit reported on any original or amended return filed under
26this Act after October 20, 2003 for reporting periods prior to

 

 

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1September 1, 2004 shall be disallowed. Manufacturer's Purchase
2Credit reported on annual returns due on or after January 1,
32005 will be disallowed for periods prior to September 1,
42004. No Manufacturer's Purchase Credit may be used after
5September 30, 2003 through August 31, 2004 to satisfy any tax
6liability imposed under this Act, including any audit
7liability.
8    Beginning on July 1, 2023 and through December 31, 2032, a
9retailer may accept a Sustainable Aviation Fuel Purchase
10Credit certification from an air common carrier-purchaser in
11satisfaction of Use Tax on aviation fuel as provided in
12Section 3-87 of the Use Tax Act if the purchaser provides the
13appropriate documentation as required by Section 3-87 of the
14Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
15certification accepted by a retailer in accordance with this
16paragraph may be used by that retailer to satisfy Retailers'
17Occupation Tax liability (but not in satisfaction of penalty
18or interest) in the amount claimed in the certification, not
19to exceed 6.25% of the receipts subject to tax from a sale of
20aviation fuel. In addition, for a sale of aviation fuel to
21qualify to earn the Sustainable Aviation Fuel Purchase Credit,
22retailers must retain in their books and records a
23certification from the producer of the aviation fuel that the
24aviation fuel sold by the retailer and for which a sustainable
25aviation fuel purchase credit was earned meets the definition
26of sustainable aviation fuel under Section 3-87 of the Use Tax

 

 

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

 

 

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

 

 

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1distributor, and manufacturer of alcoholic liquor as defined
2in the Liquor Control Act of 1934, shall file a statement with
3the Department of Revenue, no later than the 10th day of the
4month for the preceding month during which transactions
5occurred, by electronic means, showing the total amount of
6gross receipts from the sale of alcoholic liquor sold or
7distributed during the preceding month to purchasers;
8identifying the purchaser to whom it was sold or distributed;
9the purchaser's tax registration number; and such other
10information reasonably required by the Department. A
11distributor, importing distributor, or manufacturer of
12alcoholic liquor must personally deliver, mail, or provide by
13electronic means to each retailer listed on the monthly
14statement a report containing a cumulative total of that
15distributor's, importing distributor's, or manufacturer's
16total sales of alcoholic liquor to that retailer no later than
17the 10th day of the month for the preceding month during which
18the transaction occurred. The distributor, importing
19distributor, or manufacturer shall notify the retailer as to
20the method by which the distributor, importing distributor, or
21manufacturer will provide the sales information. If the
22retailer is unable to receive the sales information by
23electronic means, the distributor, importing distributor, or
24manufacturer shall furnish the sales information by personal
25delivery or by mail. For purposes of this paragraph, the term
26"electronic means" includes, but is not limited to, the use of

 

 

10300HB4951sam002- 579 -LRB103 38094 HLH 74177 a

1a secure Internet website, e-mail, or facsimile.
2    If a total amount of less than $1 is payable, refundable or
3creditable, such amount shall be disregarded if it is less
4than 50 cents and shall be increased to $1 if it is 50 cents or
5more.
6    Notwithstanding any other provision of this Act to the
7contrary, retailers subject to tax on cannabis shall file all
8cannabis tax returns and shall make all cannabis tax payments
9by electronic means in the manner and form required by the
10Department.
11    Beginning October 1, 1993, a taxpayer who has an average
12monthly tax liability of $150,000 or more shall make all
13payments required by rules of the Department by electronic
14funds transfer. Beginning October 1, 1994, a taxpayer who has
15an average monthly tax liability of $100,000 or more shall
16make all payments required by rules of the Department by
17electronic funds transfer. Beginning October 1, 1995, a
18taxpayer who has an average monthly tax liability of $50,000
19or more shall make all payments required by rules of the
20Department by electronic funds transfer. Beginning October 1,
212000, a taxpayer who has an annual tax liability of $200,000 or
22more shall make all payments required by rules of the
23Department by electronic funds transfer. The term "annual tax
24liability" shall be 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

 

 

10300HB4951sam002- 580 -LRB103 38094 HLH 74177 a

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

 

 

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1is not a whole-dollar amount, be increased to the nearest
2whole-dollar amount in any case where the fractional part of a
3dollar is 50 cents or more, and decreased to the nearest
4whole-dollar amount where the fractional part of a dollar is
5less than 50 cents.
6    If the retailer is otherwise required to file a monthly
7return and if the retailer's average monthly tax liability to
8the 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
11year being due by April 20 of such year; with the return for
12April, May, and June of a given year being due by July 20 of
13such year; with the return for July, August, and September of a
14given year being due by October 20 of such year, and with the
15return for October, November, and December of a given year
16being due by January 20 of the following year.
17    If the retailer is otherwise required to file a monthly or
18quarterly return and if the retailer's average monthly tax
19liability with 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 retailer may file his return, in the
2case of any retailer who ceases to engage in a kind of business
3which makes him responsible for filing returns under this Act,
4such retailer shall file a final return under this Act with the
5Department not more than one month after discontinuing such
6business.
7    Where the same person has more than one business
8registered with the Department under separate registrations
9under this Act, such person may not file each return that is
10due as a single return covering all such registered
11businesses, but shall file separate returns for each such
12registered business.
13    In addition, with respect to motor vehicles, watercraft,
14aircraft, and trailers that are required to be registered with
15an agency of this State, except as otherwise provided in this
16Section, every retailer selling this kind of tangible personal
17property shall file, with the Department, upon a form to be
18prescribed and supplied by the Department, a separate return
19for each such item of tangible personal property which the
20retailer sells, except that if, in the same transaction, (i) a
21retailer of aircraft, watercraft, motor vehicles, or trailers
22transfers more than one aircraft, watercraft, motor vehicle,
23or trailer to another aircraft, watercraft, motor vehicle
24retailer, or trailer retailer for the purpose of resale or
25(ii) a retailer of aircraft, watercraft, motor vehicles, or
26trailers transfers more than one aircraft, watercraft, motor

 

 

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

 

 

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1    Any retailer who sells only motor vehicles, watercraft,
2aircraft, or trailers that are required to be registered with
3an agency of this State, so that all retailers' occupation tax
4liability is required to be reported, and is reported, on such
5transaction reporting returns and who is not otherwise
6required to file monthly or quarterly returns, need not file
7monthly or quarterly returns. However, those retailers shall
8be required to file returns on an annual basis.
9    The transaction reporting return, in the case of motor
10vehicles or trailers that are required to be registered with
11an agency of this State, shall be the same document as the
12Uniform Invoice referred to in Section 5-402 of the Illinois
13Vehicle Code and must show the name and address of the seller;
14the name and address of the purchaser; the amount of the
15selling price 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; such

 

 

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

 

 

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

 

 

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

 

 

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1with respect to such receipts.
2    Where the seller is a corporation, the return filed on
3behalf of such corporation shall be signed by the president,
4vice-president, secretary, or treasurer or by the properly
5accredited agent of such corporation.
6    Where the seller is a limited liability company, the
7return filed on behalf of the limited liability company shall
8be signed by a manager, member, or properly accredited agent
9of the limited liability company.
10    Except as provided in this Section, the retailer filing
11the return under this Section shall, at the time of filing such
12return, pay to the Department the amount of tax imposed by this
13Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
14on and after January 1, 1990, or $5 per calendar year,
15whichever is greater, which is allowed to reimburse the
16retailer for the expenses incurred in keeping records,
17preparing and filing returns, remitting the tax and supplying
18data to the Department on request. On and after January 1,
192021, a certified service provider, as defined in the Leveling
20the Playing Field for Illinois Retail Act, filing the return
21under this Section on behalf of a remote retailer shall, at the
22time of such return, pay to the Department the amount of tax
23imposed by this Act less a discount of 1.75%. A remote retailer
24using a certified service provider to file a return on its
25behalf, as provided in the Leveling the Playing Field for
26Illinois Retail Act, is not eligible for the discount. When

 

 

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1determining the discount allowed under this Section, retailers
2shall include the amount of tax that would have been due at the
31% rate but for the 0% rate imposed under Public Act 102-700.
4When determining the discount allowed under this Section,
5retailers shall include the amount of tax that would have been
6due at the 6.25% rate but for the 1.25% rate imposed on sales
7tax holiday items under Public Act 102-700. The discount under
8this Section is not allowed for the 1.25% portion of taxes paid
9on aviation fuel that is subject to the revenue use
10requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. Any
11prepayment made pursuant to Section 2d of this Act shall be
12included in the amount on which such 2.1% or 1.75% discount is
13computed. In the case of retailers who report and pay the tax
14on a transaction by transaction basis, as provided in this
15Section, such discount shall be taken with each such tax
16remittance instead of when such retailer files his periodic
17return. The discount allowed under this Section is allowed
18only for returns that are filed in the manner required by this
19Act. The Department may disallow the discount for retailers
20whose certificate of registration is revoked at the time the
21return is filed, but only if the Department's decision to
22revoke the certificate of registration has become final.
23    Before October 1, 2000, if the taxpayer's average monthly
24tax liability to the Department under this Act, the Use Tax
25Act, the Service Occupation Tax Act, and the Service Use Tax
26Act, excluding any liability for prepaid sales tax to be

 

 

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

 

 

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1liability is incurred begins on or after January 1, 1985 and
2prior to January 1, 1987, each payment shall be in an amount
3equal to 22.5% of the taxpayer's actual liability for the
4month or 27.5% of the taxpayer's liability for the same
5calendar month of the preceding year. If the month during
6which such tax liability is incurred begins on or after
7January 1, 1987 and prior to January 1, 1988, each payment
8shall be in an amount equal to 22.5% of the taxpayer's actual
9liability for the month or 26.25% of the taxpayer's liability
10for the same calendar month of the preceding year. If the month
11during which such tax liability is incurred begins on or after
12January 1, 1988, and prior to January 1, 1989, or begins on or
13after January 1, 1996, each payment shall be in an amount equal
14to 22.5% of the taxpayer's actual liability for the month or
1525% of the taxpayer's liability for the same calendar month of
16the preceding year. If the month during which such tax
17liability is incurred begins on or after January 1, 1989, and
18prior to January 1, 1996, each payment shall be in an amount
19equal to 22.5% of the taxpayer's actual liability for the
20month or 25% of the taxpayer's liability for the same calendar
21month of the preceding year or 100% of the taxpayer's actual
22liability for the quarter monthly reporting period. The amount
23of such quarter monthly payments shall be credited against the
24final tax liability of the taxpayer's return for that month.
25Before October 1, 2000, once applicable, the requirement of
26the making of quarter monthly payments to the Department by

 

 

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

 

 

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1taxpayer can show the Department that a substantial change in
2the taxpayer's business has occurred which causes the taxpayer
3to anticipate that his average monthly tax liability for the
4reasonably foreseeable future will fall below the $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
110% in Public Act 102-700 on food for human consumption that is
12to be consumed off the premises where it is sold (other than
13alcoholic beverages, food consisting of or infused with adult
14use cannabis, soft drinks, and food that has been prepared for
15immediate consumption) had not occurred. For quarter monthly
16payments due under this paragraph on or after July 1, 2023 and
17through June 30, 2024, "25% of the taxpayer's liability for
18the same calendar month of the preceding year" shall be
19determined as if the rate reduction to 0% in Public Act 102-700
20had not occurred. Quarter monthly payment status shall be
21determined under this paragraph as if the rate reduction to
221.25% in Public Act 102-700 on sales tax holiday items had not
23occurred. For quarter monthly payments due on or after July 1,
242023 and through June 30, 2024, "25% of the taxpayer's
25liability for the same calendar month of the preceding year"
26shall be determined as if the rate reduction to 1.25% in Public

 

 

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1Act 102-700 on sales tax holiday items had not occurred. If any
2such quarter monthly payment is not paid at the time or in the
3amount required by this Section, then the taxpayer shall be
4liable for penalties and interest on the difference between
5the minimum amount due as a payment and the amount of such
6quarter monthly payment actually and timely paid, except
7insofar as the taxpayer has previously made payments for that
8month to the Department in excess of the minimum payments
9previously due as provided in this Section. The Department
10shall make reasonable rules and regulations to govern the
11quarter monthly payment amount and quarter monthly payment
12dates for taxpayers who file on other than a calendar monthly
13basis.
14    The provisions of this paragraph apply before October 1,
152001. Without regard to whether a taxpayer is required to make
16quarter monthly payments as specified above, any taxpayer who
17is required by Section 2d of this Act to collect and remit
18prepaid taxes and has collected prepaid taxes which average in
19excess of $25,000 per month during the preceding 2 complete
20calendar quarters, shall file a return with the Department as
21required by Section 2f and shall make payments to the
22Department on or before the 7th, 15th, 22nd and last day of the
23month during which such liability is incurred. If the month
24during which such tax liability is incurred began prior to
25September 1, 1985 (the effective date of Public Act 84-221),
26each payment shall be in an amount not less than 22.5% of the

 

 

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1taxpayer's actual liability under Section 2d. If the month
2during which such tax liability is incurred begins on or after
3January 1, 1986, each payment shall be in an amount equal to
422.5% of the taxpayer's actual liability for the month or
527.5% of the taxpayer's liability for the same calendar month
6of the preceding calendar year. If the month during which such
7tax liability is incurred begins on or after January 1, 1987,
8each payment shall be in an amount equal to 22.5% of the
9taxpayer's actual liability for the month or 26.25% of the
10taxpayer's liability for the same calendar month of the
11preceding year. The amount of such quarter monthly payments
12shall be credited against the final tax liability of the
13taxpayer's return for that month filed under this Section or
14Section 2f, as the case may be. Once applicable, the
15requirement of the making of quarter monthly payments to the
16Department pursuant to this paragraph shall continue until
17such taxpayer's average monthly prepaid tax collections during
18the preceding 2 complete calendar quarters is $25,000 or less.
19If any such quarter monthly payment is not paid at the time or
20in the amount required, the taxpayer shall be liable for
21penalties and interest on such difference, except insofar as
22the taxpayer has previously made payments for that month in
23excess of the minimum payments previously due.
24    The provisions of this paragraph apply on and after
25October 1, 2001. Without regard to whether a taxpayer is
26required to make quarter monthly payments as specified above,

 

 

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

 

 

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1month in excess of the minimum payments previously due.
2    If any payment provided for in this Section exceeds the
3taxpayer's liabilities under this Act, the Use Tax Act, the
4Service Occupation Tax Act, and the Service Use Tax Act, as
5shown on an original monthly return, the Department shall, if
6requested by the taxpayer, issue to the taxpayer a credit
7memorandum no later than 30 days after the date of payment. The
8credit evidenced by such credit memorandum may be assigned by
9the taxpayer to a similar taxpayer under this Act, the Use Tax
10Act, the Service Occupation Tax Act, or the Service Use Tax
11Act, in accordance with reasonable rules and regulations to be
12prescribed by the Department. If no such request is made, the
13taxpayer may credit such excess payment against tax liability
14subsequently to be remitted to the Department under this Act,
15the Use Tax Act, the Service Occupation Tax Act, or the Service
16Use Tax Act, in accordance with reasonable rules and
17regulations prescribed by the Department. If the Department
18subsequently determined that all or any part of the credit
19taken was not actually due to the taxpayer, the taxpayer's
202.1% and 1.75% vendor's discount shall be reduced by 2.1% or
211.75% of the difference between the credit taken and that
22actually due, and that taxpayer shall be liable for penalties
23and interest on such difference.
24    If a retailer of motor fuel is entitled to a credit under
25Section 2d of this Act which exceeds the taxpayer's liability
26to the Department under this Act for the month for which the

 

 

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

 

 

10300HB4951sam002- 599 -LRB103 38094 HLH 74177 a

1realized for the preceding month from the 6.25% general rate
2on the selling price of tangible personal property other than
3aviation fuel sold on or after December 1, 2019. This
4exception for aviation fuel only applies for so long as the
5revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
647133 are binding on the State.
7    For aviation fuel sold on or after December 1, 2019, each
8month the Department shall pay into the State Aviation Program
9Fund 20% of the net revenue realized for the preceding month
10from the 6.25% general rate on the selling price of aviation
11fuel, less an amount estimated by the Department to be
12required for refunds of the 20% portion of the tax on aviation
13fuel under this Act, which amount shall be deposited into the
14Aviation Fuel Sales Tax Refund Fund. The Department shall only
15pay moneys into the State Aviation Program Fund and the
16Aviation Fuel Sales Tax Refund Fund under this Act for so long
17as the revenue use requirements of 49 U.S.C. 47107(b) and 49
18U.S.C. 47133 are binding on the State.
19    Beginning August 1, 2000, each month the Department shall
20pay into the Local Government Tax Fund 80% of the net revenue
21realized for the preceding month from the 1.25% rate on the
22selling price of motor fuel and gasohol. If, in any month, the
23tax on sales tax holiday items, as defined in Section 2-8, is
24imposed at the rate of 1.25%, then the Department shall pay 80%
25of the net revenue realized for that month from the 1.25% rate
26on the selling price of sales tax holiday items into the Local

 

 

10300HB4951sam002- 600 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 601 -LRB103 38094 HLH 74177 a

1Act shall not exceed $18,000,000 in any State fiscal year. As
2used in this paragraph, the "average monthly deficit" shall be
3equal to the difference between the average monthly claims for
4payment by the fund and the average monthly revenues deposited
5into the fund, excluding payments made pursuant to this
6paragraph.
7    Beginning July 1, 2015, of the remainder of the moneys
8received by the Department under the Use Tax Act, the Service
9Use Tax Act, the Service Occupation Tax Act, and this Act, each
10month the Department shall deposit $500,000 into the State
11Crime Laboratory Fund.
12    Of the remainder of the moneys received by the Department
13pursuant to this Act, (a) 1.75% thereof shall be paid into the
14Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
15and after July 1, 1989, 3.8% thereof shall be paid into the
16Build Illinois Fund; provided, however, that if in any fiscal
17year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
18may be, of the moneys received by the Department and required
19to be paid into the Build Illinois Fund pursuant to this Act,
20Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
21Act, and Section 9 of the Service Occupation Tax Act, such Acts
22being hereinafter called the "Tax Acts" and such aggregate of
232.2% or 3.8%, as the case may be, of moneys being hereinafter
24called the "Tax Act Amount", and (2) the amount transferred to
25the Build Illinois Fund from the State and Local Sales Tax
26Reform Fund shall be less than the Annual Specified Amount (as

 

 

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1hereinafter defined), an amount equal to the difference shall
2be immediately paid into the Build Illinois Fund from other
3moneys received by the Department pursuant to the Tax Acts;
4the "Annual Specified Amount" means the amounts specified
5below for fiscal years 1986 through 1993:
6Fiscal YearAnnual Specified Amount
71986$54,800,000
81987$76,650,000
91988$80,480,000
101989$88,510,000
111990$115,330,000
121991$145,470,000
131992$182,730,000
141993$206,520,000;
15and means the Certified Annual Debt Service Requirement (as
16defined in Section 13 of the Build Illinois Bond Act) or the
17Tax Act Amount, whichever is greater, for fiscal year 1994 and
18each fiscal year thereafter; and further provided, that if on
19the last business day of any month the sum of (1) the Tax Act
20Amount required to be deposited into the Build Illinois Bond
21Account in the Build Illinois Fund during such month and (2)
22the amount transferred to the Build Illinois Fund from the
23State and Local Sales Tax Reform Fund shall have been less than
241/12 of the Annual Specified Amount, an amount equal to the
25difference shall be immediately paid into the Build Illinois
26Fund from other moneys received by the Department pursuant to

 

 

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1the Tax Acts; and, further provided, that in no event shall the
2payments required under the preceding proviso result in
3aggregate payments into the Build Illinois Fund pursuant to
4this clause (b) for any fiscal year in excess of the greater of
5(i) the Tax Act Amount or (ii) the Annual Specified Amount for
6such fiscal year. The amounts payable into the Build Illinois
7Fund under clause (b) of the first sentence in this paragraph
8shall be payable only until such time as the aggregate amount
9on deposit under each trust indenture securing Bonds issued
10and outstanding pursuant to the Build Illinois Bond Act is
11sufficient, taking into account any future investment income,
12to fully provide, in accordance with such indenture, for the
13defeasance of or the payment of the principal of, premium, if
14any, and interest on the Bonds secured by such indenture and on
15any Bonds expected to be issued thereafter and all fees and
16costs payable with respect thereto, all as certified by the
17Director of the Bureau of the Budget (now Governor's Office of
18Management and Budget). If on the last business day of any
19month in which Bonds are outstanding pursuant to the Build
20Illinois Bond Act, the aggregate of moneys deposited in the
21Build Illinois Bond Account in the Build Illinois Fund in such
22month shall be less than the amount required to be transferred
23in such month from the Build Illinois Bond Account to the Build
24Illinois Bond Retirement and Interest Fund pursuant to Section
2513 of the Build Illinois Bond Act, an amount equal to such
26deficiency shall be immediately paid from other moneys

 

 

10300HB4951sam002- 604 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 605 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 606 -LRB103 38094 HLH 74177 a

12021300,000,000
22022300,000,000
32023300,000,000
42024 300,000,000
52025 300,000,000
62026 300,000,000
72027 375,000,000
82028 375,000,000
92029 375,000,000
102030 375,000,000
112031 375,000,000
122032 375,000,000
132033375,000,000
142034375,000,000
152035375,000,000
162036450,000,000
17and
18each fiscal year
19thereafter that bonds
20are outstanding under
21Section 13.2 of the
22Metropolitan Pier and
23Exposition Authority Act,
24but not after fiscal year 2060.
25    Beginning July 20, 1993 and in each month of each fiscal
26year thereafter, one-eighth of the amount requested in the

 

 

10300HB4951sam002- 607 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 608 -LRB103 38094 HLH 74177 a

1preceding paragraphs or in any amendments thereto hereafter
2enacted, beginning July 1, 1993 and ending on September 30,
32013, the Department shall each month pay into the Illinois
4Tax Increment Fund 0.27% of 80% of the net revenue realized for
5the preceding month from the 6.25% general rate on the selling
6price of tangible personal property.
7    Subject to payment of amounts into the Build Illinois
8Fund, the McCormick Place Expansion Project Fund, and the
9Illinois Tax Increment Fund pursuant to the preceding
10paragraphs or in any amendments to this Section hereafter
11enacted, beginning on the first day of the first calendar
12month to occur on or after August 26, 2014 (the effective date
13of Public Act 98-1098), each month, from the collections made
14under Section 9 of the Use Tax Act, Section 9 of the Service
15Use Tax Act, Section 9 of the Service Occupation Tax Act, and
16Section 3 of the Retailers' Occupation Tax Act, the Department
17shall pay into the Tax Compliance and Administration Fund, to
18be used, subject to appropriation, to fund additional auditors
19and compliance personnel at the Department of Revenue, an
20amount equal to 1/12 of 5% of 80% of the cash receipts
21collected during the preceding fiscal year by the Audit Bureau
22of the Department under the Use Tax Act, the Service Use Tax
23Act, the Service Occupation Tax Act, the Retailers' Occupation
24Tax Act, and associated local occupation and use taxes
25administered by the Department.
26    Subject to payments of amounts into the Build Illinois

 

 

10300HB4951sam002- 609 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 610 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 611 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 612 -LRB103 38094 HLH 74177 a

1Place Expansion Project Fund, the Illinois Tax Increment Fund,
2and the Tax Compliance and Administration Fund as provided in
3this Section, the Department shall pay each month into the
4Road Fund the amount estimated to represent 64% of the net
5revenue realized from the taxes imposed on motor fuel and
6gasohol. Beginning on July 1, 2025, subject to the payment of
7amounts into the County and Mass Transit District Fund, the
8Local Government Tax Fund, the Build Illinois Fund, the
9McCormick Place Expansion Project Fund, the Illinois Tax
10Increment Fund, and the Tax Compliance and Administration Fund
11as provided in this Section, the Department shall pay each
12month into the Road Fund the amount estimated to represent 80%
13of the net revenue realized from the taxes imposed on motor
14fuel and gasohol. As used in this paragraph "motor fuel" has
15the meaning given to that term in Section 1.1 of the Motor Fuel
16Tax Law, and "gasohol" has the meaning given to that term in
17Section 3-40 of the Use Tax Act.
18    Of the remainder of the moneys received by the Department
19pursuant to this Act, 75% thereof shall be paid into the State
20treasury and 25% shall be reserved in a special account and
21used only for the transfer to the Common School Fund as part of
22the monthly transfer from the General Revenue Fund in
23accordance with Section 8a of the State Finance Act.
24    The Department may, upon separate written notice to a
25taxpayer, require the taxpayer to prepare and file with the
26Department on a form prescribed by the Department within not

 

 

10300HB4951sam002- 613 -LRB103 38094 HLH 74177 a

1less than 60 days after receipt of the notice an annual
2information return for the tax year specified in the notice.
3Such annual return to the Department shall include a statement
4of gross receipts as shown by the retailer's last federal
5Federal income tax return. If the total receipts of the
6business as reported in the federal Federal income tax return
7do not agree with the gross receipts reported to the
8Department of Revenue for the same period, the retailer shall
9attach to his annual return a schedule showing a
10reconciliation of the 2 amounts and the reasons for the
11difference. The retailer's annual return to the Department
12shall also disclose the cost of goods sold by the retailer
13during the year covered by such return, opening and closing
14inventories of such goods for such year, costs of goods used
15from stock or taken from stock and given away by the retailer
16during such year, payroll information of the retailer's
17business during such year and any additional reasonable
18information which the Department deems would be helpful in
19determining the accuracy of the monthly, quarterly, or annual
20returns filed by such retailer as provided for in this
21Section.
22    If the annual information return required by this Section
23is not filed when and as required, the taxpayer shall be liable
24as follows:
25        (i) Until January 1, 1994, the taxpayer shall be
26    liable for a penalty equal to 1/6 of 1% of the tax due from

 

 

10300HB4951sam002- 614 -LRB103 38094 HLH 74177 a

1    such taxpayer under this Act during the period to be
2    covered by the annual return for each month or fraction of
3    a month until such return is filed as required, the
4    penalty to be assessed and collected in the same manner as
5    any other penalty provided for in this Act.
6        (ii) On and after January 1, 1994, the taxpayer shall
7    be liable for a penalty as described in Section 3-4 of the
8    Uniform Penalty and Interest Act.
9    The chief executive officer, proprietor, owner, or highest
10ranking manager shall sign the annual return to certify the
11accuracy of the information contained therein. Any person who
12willfully signs the annual return containing false or
13inaccurate information shall be guilty of perjury and punished
14accordingly. The annual return form prescribed by the
15Department shall include a warning that the person signing the
16return may be liable for perjury.
17    The provisions of this Section concerning the filing of an
18annual information return do not apply to a retailer who is not
19required to file an income tax return with the United States
20Government.
21    As soon as possible after the first day of each month, upon
22certification of the Department of Revenue, the Comptroller
23shall order transferred and the Treasurer shall transfer from
24the General Revenue Fund to the Motor Fuel Tax Fund an amount
25equal to 1.7% of 80% of the net revenue realized under this Act
26for the second preceding month. Beginning April 1, 2000, this

 

 

10300HB4951sam002- 615 -LRB103 38094 HLH 74177 a

1transfer is no longer required and shall not be made.
2    Net revenue realized for a month shall be the revenue
3collected by the State pursuant to this Act, less the amount
4paid out during that month as refunds to taxpayers for
5overpayment of liability.
6    For greater simplicity of administration, manufacturers,
7importers and wholesalers whose products are sold at retail in
8Illinois by numerous retailers, and who wish to do so, may
9assume the responsibility for accounting and paying to the
10Department all tax accruing under this Act with respect to
11such sales, if the retailers who are affected do not make
12written objection to the Department to this arrangement.
13    Any person who promotes, organizes, or provides retail
14selling space for concessionaires or other types of sellers at
15the Illinois State Fair, DuQuoin State Fair, county fairs,
16local fairs, art shows, flea markets, and similar exhibitions
17or events, including any transient merchant as defined by
18Section 2 of the Transient Merchant Act of 1987, is required to
19file a report with the Department providing the name of the
20merchant's business, the name of the person or persons engaged
21in merchant's business, the permanent address and Illinois
22Retailers Occupation Tax Registration Number of the merchant,
23the dates and location of the event, and other reasonable
24information that the Department may require. The report must
25be filed not later than the 20th day of the month next
26following the month during which the event with retail sales

 

 

10300HB4951sam002- 616 -LRB103 38094 HLH 74177 a

1was held. Any person who fails to file a report required by
2this Section commits a business offense and is subject to a
3fine not to exceed $250.
4    Any person engaged in the business of selling tangible
5personal property at retail as a concessionaire or other type
6of seller at the Illinois State Fair, county fairs, art shows,
7flea markets, and similar exhibitions or events, or any
8transient merchants, as defined by Section 2 of the Transient
9Merchant Act of 1987, may be required to make a daily report of
10the amount of such sales to the Department and to make a daily
11payment of the full amount of tax due. The Department shall
12impose this requirement when it finds that there is a
13significant risk of loss of revenue to the State at such an
14exhibition or event. Such a finding shall be based on evidence
15that a substantial number of concessionaires or other sellers
16who are not residents of Illinois will be engaging in the
17business of selling tangible personal property at retail at
18the exhibition or event, or other evidence of a significant
19risk of loss of revenue to the State. The Department shall
20notify concessionaires and other sellers affected by the
21imposition of this requirement. In the absence of notification
22by the Department, the concessionaires and other sellers shall
23file their returns as otherwise required in this Section.
24(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60,
25Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
2665-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.

 

 

10300HB4951sam002- 617 -LRB103 38094 HLH 74177 a

11-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363,
2eff. 7-28-23; revised 9-27-23.)
 
3    Section 75-25. The Innovation Development and Economy Act
4is amended by changing Section 31 as follows:
 
5    (50 ILCS 470/31)
6    Sec. 31. STAR bond occupation taxes.
7    (a) If the corporate authorities of a political
8subdivision have established a STAR bond district and have
9elected to impose a tax by ordinance pursuant to subsection
10(b) or (c) of this Section, each year after the date of the
11adoption of the ordinance and until all STAR bond project
12costs and all political subdivision obligations financing the
13STAR bond project costs, if any, have been paid in accordance
14with the STAR bond project plans, but in no event longer than
15the maximum maturity date of the last of the STAR bonds issued
16for projects in the STAR bond district, all amounts generated
17by the retailers' occupation tax and service occupation tax
18shall be collected and the tax shall be enforced by the
19Department of Revenue in the same manner as all retailers'
20occupation taxes and service occupation taxes imposed in the
21political subdivision imposing the tax. The corporate
22authorities of the political subdivision shall deposit the
23proceeds of the taxes imposed under subsections (b) and (c)
24into either (i) a special fund held by the corporate

 

 

10300HB4951sam002- 618 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 619 -LRB103 38094 HLH 74177 a

1only in 0.25% increments. The tax may not be imposed on
2tangible personal property taxed at the 1% rate under the
3Retailers' Occupation Tax Act (or at the 0% rate imposed under
4this amendatory Act of the 102nd General Assembly). Beginning
5December 1, 2019 and through December 31, 2020, this tax is not
6imposed on sales of aviation fuel unless the tax revenue is
7expended for airport-related purposes. If the District does
8not have an airport-related purpose to which aviation fuel tax
9revenue is dedicated, then aviation fuel is excluded from the
10tax. The municipality must comply with the certification
11requirements for airport-related purposes under Section 2-22
12of the Retailers' Occupation Tax Act. For purposes of this
13Act, "airport-related purposes" has the meaning ascribed in
14Section 6z-20.2 of the State Finance Act. Beginning January 1,
152021, this tax is not imposed on sales of aviation fuel for so
16long as the revenue use requirements of 49 U.S.C. 47107(b) and
1749 U.S.C. 47133 are binding on the District.
18    The tax imposed under this subsection and all civil
19penalties that may be assessed as an incident thereof shall be
20collected and enforced by the Department of Revenue. The
21certificate of registration that is issued by the Department
22to a retailer under the Retailers' Occupation Tax Act shall
23permit the retailer to engage in a business that is taxable
24under any ordinance or resolution enacted pursuant to this
25subsection without registering separately with the Department
26under such ordinance or resolution or under this subsection.

 

 

10300HB4951sam002- 620 -LRB103 38094 HLH 74177 a

1The Department of Revenue shall have full power to administer
2and enforce this subsection, to collect all taxes and
3penalties due under this subsection in the manner hereinafter
4provided, and to determine all rights to credit memoranda
5arising on account of the erroneous payment of tax or penalty
6under this subsection. In the administration of, and
7compliance with, this subsection, the Department and persons
8who are subject to this subsection shall have the same rights,
9remedies, privileges, immunities, powers, and duties, and be
10subject to the same conditions, restrictions, limitations,
11penalties, exclusions, exemptions, and definitions of terms
12and employ the same modes of procedure, as are prescribed in
13Sections 1, 1a through 1o, 2 through 2-65 (in respect to all
14provisions therein other than the State rate of tax), 2c
15through 2h, 3 (except as to the disposition of taxes and
16penalties collected, and except that the retailer's discount
17is not allowed for taxes paid on aviation fuel that are subject
18to the revenue use requirements of 49 U.S.C. 47107(b) and 49
19U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k,
205l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the
21Retailers' Occupation Tax Act and all provisions of the
22Uniform Penalty and Interest Act, as fully as if those
23provisions were set forth herein.
24    If a tax is imposed under this subsection (b), a tax shall
25also be imposed under subsection (c) of this Section.
26    (c) If a tax has been imposed under subsection (b), a STAR

 

 

10300HB4951sam002- 621 -LRB103 38094 HLH 74177 a

1Bond Service Occupation Tax shall also be imposed upon all
2persons engaged, in the STAR bond district, in the business of
3making sales of service, who, as an incident to making those
4sales of service, transfer tangible personal property within
5the STAR bond district, either in the form of tangible
6personal property or in the form of real estate as an incident
7to a sale of service. The tax shall be imposed at the same rate
8as the tax imposed in subsection (b) and shall not exceed 1% of
9the selling price of tangible personal property so transferred
10within the STAR bond district, to be imposed only in 0.25%
11increments. The tax may not be imposed on tangible personal
12property taxed at the 1% rate under the Service Occupation Tax
13Act (or at the 0% rate imposed under this amendatory Act of the
14102nd General Assembly). Beginning December 1, 2019 and
15through December 31, 2020, this tax is not imposed on sales of
16aviation fuel unless the tax revenue is expended for
17airport-related purposes. If the District does not have an
18airport-related purpose to which aviation fuel tax revenue is
19dedicated, then aviation fuel is excluded from the tax. The
20municipality must comply with the certification requirements
21for airport-related purposes under Section 2-22 of the
22Retailers' Occupation Tax Act. For purposes of this Act,
23"airport-related purposes" has the meaning ascribed in Section
246z-20.2 of the State Finance Act. Beginning January 1, 2021,
25this tax is not imposed on sales of aviation fuel for so long
26as the revenue use requirements of 49 U.S.C. 47107(b) and 49

 

 

10300HB4951sam002- 622 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 623 -LRB103 38094 HLH 74177 a

1State shall be to the STAR bond district), 5, 7, 8 (except that
2the jurisdiction to which the tax shall be a debt to the extent
3indicated in that Section 8 shall be the political
4subdivision), 9 (except as to the disposition of taxes and
5penalties collected, and except that the returned merchandise
6credit for this tax may not be taken against any State tax, and
7except that the retailer's discount is not allowed for taxes
8paid on aviation fuel that are subject to the revenue use
9requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
1011, 12 (except the reference therein to Section 2b of the
11Retailers' Occupation Tax Act), 13 (except that any reference
12to the State shall mean the political subdivision), the first
13paragraph of Section 15, and Sections 16, 17, 18, 19 and 20 of
14the Service Occupation Tax Act and all provisions of the
15Uniform Penalty and Interest Act, as fully as if those
16provisions were set forth herein.
17    If a tax is imposed under this subsection (c), a tax shall
18also be imposed under subsection (b) of this Section.
19    (c-5) If, on January 1, 2025, a unit of local government
20has in effect a tax under this Section, or if, after January 1,
212025, a unit of local government imposes a tax under this
22Section, then that tax applies to leases of tangible personal
23property in effect, entered into, or renewed on or after that
24date in the same manner as the tax under this Section and in
25accordance with the changes made by this amendatory Act of the
26103rd General Assembly.

 

 

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1    (d) Persons subject to any tax imposed under this Section
2may reimburse themselves for their seller's tax liability
3under this Section by separately stating the tax as an
4additional charge, which charge may be stated in combination,
5in a single amount, with State taxes that sellers are required
6to collect under the Use Tax Act, in accordance with such
7bracket schedules as the Department may prescribe.
8    Whenever the Department determines that a refund should be
9made under this Section to a claimant instead of issuing a
10credit memorandum, the Department shall notify the State
11Comptroller, who shall cause the order to be drawn for the
12amount specified and to the person named in the notification
13from the Department. The refund shall be paid by the State
14Treasurer out of the STAR Bond Retailers' Occupation Tax Fund
15or the Local Government Aviation Trust Fund, as appropriate.
16    Except as otherwise provided in this paragraph, the
17Department shall immediately pay over to the State Treasurer,
18ex officio, as trustee, all taxes, penalties, and interest
19collected under this Section for deposit into the STAR Bond
20Retailers' Occupation Tax Fund. Taxes and penalties collected
21on aviation fuel sold on or after December 1, 2019, shall be
22immediately paid over by the Department to the State
23Treasurer, ex officio, as trustee, for deposit into the Local
24Government Aviation Trust Fund. The Department shall only pay
25moneys into the Local Government Aviation Trust Fund under
26this Section for so long as the revenue use requirements of 49

 

 

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1U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
2District. On or before the 25th day of each calendar month, the
3Department shall prepare and certify to the Comptroller the
4disbursement of stated sums of money to named political
5subdivisions from the STAR Bond Retailers' Occupation Tax
6Fund, the political subdivisions to be those from which
7retailers have paid taxes or penalties under this Section to
8the Department during the second preceding calendar month. The
9amount to be paid to each political subdivision shall be the
10amount (not including credit memoranda and not including taxes
11and penalties collected on aviation fuel sold on or after
12December 1, 2019) collected under this Section during the
13second preceding calendar month by the Department plus an
14amount the Department determines is necessary to offset any
15amounts that were erroneously paid to a different taxing body,
16and not including an amount equal to the amount of refunds made
17during the second preceding calendar month by the Department,
18less 3% of that amount, which shall be deposited into the Tax
19Compliance and Administration Fund and shall be used by the
20Department, subject to appropriation, to cover the costs of
21the Department in administering and enforcing the provisions
22of this Section, on behalf of such political subdivision, and
23not including any amount that the Department determines is
24necessary to offset any amounts that were payable to a
25different taxing body but were erroneously paid to the
26political subdivision. Within 10 days after receipt by the

 

 

10300HB4951sam002- 626 -LRB103 38094 HLH 74177 a

1Comptroller of the disbursement certification to the political
2subdivisions provided for in this Section to be given to the
3Comptroller by the Department, the Comptroller shall cause the
4orders to be drawn for the respective amounts in accordance
5with the directions contained in the certification. The
6proceeds of the tax paid to political subdivisions under this
7Section shall be deposited into either (i) the STAR Bonds Tax
8Allocation Fund by the political subdivision if the political
9subdivision has designated them as pledged STAR revenues by
10resolution or ordinance or (ii) the political subdivision's
11general corporate fund if the political subdivision has not
12designated them as pledged STAR revenues.
13    An ordinance or resolution imposing or discontinuing the
14tax under this Section or effecting a change in the rate
15thereof shall either (i) be adopted and a certified copy
16thereof filed with the Department on or before the first day of
17April, whereupon the Department, if all other requirements of
18this Section are met, shall proceed to administer and enforce
19this Section as of the first day of July next following the
20adoption and filing; or (ii) be adopted and a certified copy
21thereof filed with the Department on or before the first day of
22October, whereupon, if all other requirements of this Section
23are met, the Department shall proceed to administer and
24enforce this Section as of the first day of January next
25following the adoption and filing.
26    The Department of Revenue shall not administer or enforce

 

 

10300HB4951sam002- 627 -LRB103 38094 HLH 74177 a

1an ordinance imposing, discontinuing, or changing the rate of
2the tax under this Section until the political subdivision
3also provides, in the manner prescribed by the Department, the
4boundaries of the STAR bond district and each address in the
5STAR bond district in such a way that the Department can
6determine by its address whether a business is located in the
7STAR bond district. The political subdivision must provide
8this boundary and address information to the Department on or
9before April 1 for administration and enforcement of the tax
10under this Section by the Department beginning on the
11following July 1 and on or before October 1 for administration
12and enforcement of the tax under this Section by the
13Department beginning on the following January 1. The
14Department of Revenue shall not administer or enforce any
15change made to the boundaries of a STAR bond district or any
16address change, addition, or deletion until the political
17subdivision reports the boundary change or address change,
18addition, or deletion to the Department in the manner
19prescribed by the Department. The political subdivision must
20provide this boundary change or address change, addition, or
21deletion information to the Department on or before April 1
22for administration and enforcement by the Department of the
23change, addition, or deletion beginning on the following July
241 and on or before October 1 for administration and
25enforcement by the Department of the change, addition, or
26deletion beginning on the following January 1. The retailers

 

 

10300HB4951sam002- 628 -LRB103 38094 HLH 74177 a

1in the STAR bond district shall be responsible for charging
2the tax imposed under this Section. If a retailer is
3incorrectly included or excluded from the list of those
4required to collect the tax under this Section, both the
5Department of Revenue and the retailer shall be held harmless
6if they reasonably relied on information provided by the
7political subdivision.
8    A political subdivision that imposes the tax under this
9Section must submit to the Department of Revenue any other
10information as the Department may require that is necessary
11for the administration and enforcement of the tax.
12    When certifying the amount of a monthly disbursement to a
13political subdivision under this Section, the Department shall
14increase or decrease the amount by an amount necessary to
15offset any misallocation of previous disbursements. The offset
16amount shall be the amount erroneously disbursed within the
17previous 6 months from the time a misallocation is discovered.
18    Nothing in this Section shall be construed to authorize
19the political subdivision to impose a tax upon the privilege
20of engaging in any business which under the Constitution of
21the United States may not be made the subject of taxation by
22this State.
23    (e) When STAR bond project costs, including, without
24limitation, all political subdivision obligations financing
25STAR bond project costs, have been paid, any surplus funds
26then remaining in the STAR Bonds Tax Allocation Fund shall be

 

 

10300HB4951sam002- 629 -LRB103 38094 HLH 74177 a

1distributed to the treasurer of the political subdivision for
2deposit into the political subdivision's general corporate
3fund. Upon payment of all STAR bond project costs and
4retirement of obligations, but in no event later than the
5maximum maturity date of the last of the STAR bonds issued in
6the STAR bond district, the political subdivision shall adopt
7an ordinance immediately rescinding the taxes imposed pursuant
8to this Section and file a certified copy of the ordinance with
9the Department in the form and manner as described in this
10Section.
11(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19;
12102-700, eff. 4-19-22.)
 
13    Section 75-30. The Counties Code is amended by changing
14Sections 5-1006, 5-1006.5, 5-1006.7, 5-1007, and 5-1008.5 as
15follows:
 
16    (55 ILCS 5/5-1006)  (from Ch. 34, par. 5-1006)
17    Sec. 5-1006. Home Rule County Retailers' Occupation Tax
18Law. Any county that is a home rule unit may impose a tax upon
19all persons engaged in the business of selling tangible
20personal property, other than an item of tangible personal
21property titled or registered with an agency of this State's
22government, at retail in the county on the gross receipts from
23such sales made in the course of their business. If imposed,
24this tax shall only be imposed in 1/4% increments. On and after

 

 

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1September 1, 1991, this additional tax may not be imposed on
2tangible personal property taxed at the 1% rate under the
3Retailers' Occupation Tax Act (or at the 0% rate imposed under
4this amendatory Act of the 102nd General Assembly). Beginning
5December 1, 2019, this tax is not imposed on sales of aviation
6fuel unless the tax revenue is expended for airport-related
7purposes. If the county does not have an airport-related
8purpose to which it dedicates aviation fuel tax revenue, then
9aviation fuel is excluded from the tax. The county must comply
10with the certification requirements for airport-related
11purposes under Section 2-22 of the Retailers' Occupation Tax
12Act. For purposes of this Section, "airport-related purposes"
13has the meaning ascribed in Section 6z-20.2 of the State
14Finance Act. This exclusion for aviation fuel only applies for
15so long as the revenue use requirements of 49 U.S.C. 47107(b)
16and 49 U.S.C. 47133 are binding on the county. The changes made
17to this Section by this amendatory Act of the 101st General
18Assembly are a denial and limitation of home rule powers and
19functions under subsection (g) of Section 6 of Article VII of
20the Illinois Constitution.
21    If, on January 1, 2025, a unit of local government has in
22effect a tax under this Section, or if, after January 1, 2025,
23a unit of local government imposes a tax under this Section,
24then that tax applies to leases of tangible personal property
25in effect, entered into, or renewed on or after that date in
26the same manner as the tax under this Section and in accordance

 

 

10300HB4951sam002- 631 -LRB103 38094 HLH 74177 a

1with the changes made by this amendatory Act of the 103rd
2General Assembly.
3    The tax imposed by a home rule county pursuant to this
4Section and all civil penalties that may be assessed as an
5incident thereof shall be collected and enforced by the State
6Department of Revenue. The certificate of registration that is
7issued by the Department to a retailer under the Retailers'
8Occupation Tax Act shall permit the retailer to engage in a
9business that is taxable under any ordinance or resolution
10enacted pursuant to this Section without registering
11separately with the Department under such ordinance or
12resolution or under this Section. The Department shall have
13full power to administer and enforce this Section; to collect
14all taxes and penalties due hereunder; to dispose of taxes and
15penalties so collected in the manner hereinafter provided; and
16to determine all rights to credit memoranda arising on account
17of the erroneous payment of tax or penalty hereunder. In the
18administration of, and compliance with, this Section, the
19Department and persons who are subject to this Section shall
20have the same rights, remedies, privileges, immunities, powers
21and duties, and be subject to the same conditions,
22restrictions, limitations, penalties and definitions of terms,
23and employ the same modes of procedure, as are prescribed in
24Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through
252-65 (in respect to all provisions therein other than the
26State rate of tax), 3 (except as to the disposition of taxes

 

 

10300HB4951sam002- 632 -LRB103 38094 HLH 74177 a

1and penalties collected, and except that the retailer's
2discount is not allowed for taxes paid on aviation fuel that
3are subject to the revenue use requirements of 49 U.S.C.
447107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
55g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
6and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
7the Uniform Penalty and Interest Act, as fully as if those
8provisions were set forth herein.
9    No tax may be imposed by a home rule county pursuant to
10this Section unless the county also imposes a tax at the same
11rate pursuant to Section 5-1007.
12    Persons subject to any tax imposed pursuant to the
13authority granted in this Section may reimburse themselves for
14their seller's tax liability hereunder by separately stating
15such tax as an additional charge, which charge may be stated in
16combination, in a single amount, with State tax which sellers
17are required to collect under the Use Tax Act, pursuant to such
18bracket schedules as the Department may prescribe.
19    Whenever the Department determines that a refund should be
20made under this Section to a claimant instead of issuing a
21credit memorandum, the Department shall notify the State
22Comptroller, who shall cause the order to be drawn for the
23amount specified and to the person named in the notification
24from the Department. The refund shall be paid by the State
25Treasurer out of the home rule county retailers' occupation
26tax fund or the Local Government Aviation Trust Fund, as

 

 

10300HB4951sam002- 633 -LRB103 38094 HLH 74177 a

1appropriate.
2    Except as otherwise provided in this paragraph, the
3Department shall forthwith pay over to the State Treasurer, ex
4officio, as trustee, all taxes and penalties collected
5hereunder for deposit into the Home Rule County Retailers'
6Occupation Tax Fund. Taxes and penalties collected on aviation
7fuel sold on or after December 1, 2019, shall be immediately
8paid over by the Department to the State Treasurer, ex
9officio, as trustee, for deposit into the Local Government
10Aviation Trust Fund. The Department shall only pay moneys into
11the Local Government Aviation Trust Fund under this Section
12for so long as the revenue use requirements of 49 U.S.C.
1347107(b) and 49 U.S.C. 47133 are binding on the county.
14    As soon as possible after the first day of each month,
15beginning January 1, 2011, upon certification of the
16Department of Revenue, the Comptroller shall order
17transferred, and the Treasurer shall transfer, to the STAR
18Bonds Revenue Fund the local sales tax increment, as defined
19in the Innovation Development and Economy Act, collected under
20this Section during the second preceding calendar month for
21sales within a STAR bond district.
22    After the monthly transfer to the STAR Bonds Revenue Fund,
23on or before the 25th day of each calendar month, the
24Department shall prepare and certify to the Comptroller the
25disbursement of stated sums of money to named counties, the
26counties to be those from which retailers have paid taxes or

 

 

10300HB4951sam002- 634 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 635 -LRB103 38094 HLH 74177 a

1in the certification.
2    In addition to the disbursement required by the preceding
3paragraph, an allocation shall be made in March of each year to
4each county that received more than $500,000 in disbursements
5under the preceding paragraph in the preceding calendar year.
6The allocation shall be in an amount equal to the average
7monthly distribution made to each such county under the
8preceding paragraph during the preceding calendar year
9(excluding the 2 months of highest receipts). The distribution
10made in March of each year subsequent to the year in which an
11allocation was made pursuant to this paragraph and the
12preceding paragraph shall be reduced by the amount allocated
13and disbursed under this paragraph in the preceding calendar
14year. The Department shall prepare and certify to the
15Comptroller for disbursement the allocations made in
16accordance with this paragraph.
17    For the purpose of determining the local governmental unit
18whose tax is applicable, a retail sale by a producer of coal or
19other mineral mined in Illinois is a sale at retail at the
20place where the coal or other mineral mined in Illinois is
21extracted from the earth. This paragraph does not apply to
22coal or other mineral when it is delivered or shipped by the
23seller to the purchaser at a point outside Illinois so that the
24sale is exempt under the United States Constitution as a sale
25in interstate or foreign commerce.
26    Nothing in this Section shall be construed to authorize a

 

 

10300HB4951sam002- 636 -LRB103 38094 HLH 74177 a

1county to impose a tax upon the privilege of engaging in any
2business which under the Constitution of the United States may
3not be made the subject of taxation by this State.
4    An ordinance or resolution imposing or discontinuing a tax
5hereunder or effecting a change in the rate thereof shall be
6adopted and a certified copy thereof filed with the Department
7on or before the first day of June, whereupon the Department
8shall proceed to administer and enforce this Section as of the
9first day of September next following such adoption and
10filing. Beginning January 1, 1992, an ordinance or resolution
11imposing or discontinuing the tax hereunder or effecting a
12change in the rate thereof shall be adopted and a certified
13copy thereof filed with the Department on or before the first
14day of July, whereupon the Department shall proceed to
15administer and enforce this Section as of the first day of
16October next following such adoption and filing. Beginning
17January 1, 1993, an ordinance or resolution imposing or
18discontinuing the tax hereunder or effecting a change in the
19rate thereof shall be adopted and a certified copy thereof
20filed with the Department on or before the first day of
21October, whereupon the Department shall proceed to administer
22and enforce this Section as of the first day of January next
23following such adoption and filing. Beginning April 1, 1998,
24an ordinance or resolution imposing or discontinuing the tax
25hereunder or effecting a change in the rate thereof shall
26either (i) be adopted and a certified copy thereof filed with

 

 

10300HB4951sam002- 637 -LRB103 38094 HLH 74177 a

1the Department on or before the first day of April, whereupon
2the Department shall proceed to administer and enforce this
3Section as of the first day of July next following the adoption
4and filing; or (ii) be adopted and a certified copy thereof
5filed with the Department on or before the first day of
6October, whereupon the Department shall proceed to administer
7and enforce this Section as of the first day of January next
8following the adoption and filing.
9    When certifying the amount of a monthly disbursement to a
10county under this Section, the Department shall increase or
11decrease such amount by an amount necessary to offset any
12misallocation of previous disbursements. The offset amount
13shall be the amount erroneously disbursed within the previous
146 months from the time a misallocation is discovered.
15    This Section shall be known and may be cited as the Home
16Rule County Retailers' Occupation Tax Law.
17(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
18101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
19    (55 ILCS 5/5-1006.5)
20    Sec. 5-1006.5. Special County Retailers' Occupation Tax
21For Public Safety, Public Facilities, Mental Health, Substance
22Abuse, or Transportation.
23    (a) The county board of any county may impose a tax upon
24all persons engaged in the business of selling tangible
25personal property, other than personal property titled or

 

 

10300HB4951sam002- 638 -LRB103 38094 HLH 74177 a

1registered with an agency of this State's government, at
2retail in the county on the gross receipts from the sales made
3in the course of business to provide revenue to be used
4exclusively for public safety, public facility, mental health,
5substance abuse, or transportation purposes in that county
6(except as otherwise provided in this Section), if a
7proposition for the tax has been submitted to the electors of
8that county and approved by a majority of those voting on the
9question. If imposed, this tax shall be imposed only in
10one-quarter percent increments. By resolution, the county
11board may order the proposition to be submitted at any
12election. If the tax is imposed for transportation purposes
13for expenditures for public highways or as authorized under
14the Illinois Highway Code, the county board must publish
15notice of the existence of its long-range highway
16transportation plan as required or described in Section 5-301
17of the Illinois Highway Code and must make the plan publicly
18available prior to approval of the ordinance or resolution
19imposing the tax. If the tax is imposed for transportation
20purposes for expenditures for passenger rail transportation,
21the county board must publish notice of the existence of its
22long-range passenger rail transportation plan and must make
23the plan publicly available prior to approval of the ordinance
24or resolution imposing the tax.
25    If a tax is imposed for public facilities purposes, then
26the name of the project may be included in the proposition at

 

 

10300HB4951sam002- 639 -LRB103 38094 HLH 74177 a

1the discretion of the county board as determined in the
2enabling resolution. For example, the "XXX Nursing Home" or
3the "YYY Museum".
4    The county clerk shall certify the question to the proper
5election authority, who shall submit the proposition at an
6election in accordance with the general election law.
7        (1) The proposition for public safety purposes shall
8    be in substantially the following form:
9        "To pay for public safety purposes, shall (name of
10    county) be authorized to impose an increase on its share
11    of local sales taxes by (insert rate)?"
12        As additional information on the ballot below the
13    question shall appear the following:
14        "This would mean that a consumer would pay an
15    additional (insert amount) in sales tax for every $100 of
16    tangible personal property bought at retail."
17        The county board may also opt to establish a sunset
18    provision at which time the additional sales tax would
19    cease being collected, if not terminated earlier by a vote
20    of the county board. If the county board votes to include a
21    sunset provision, the proposition for public safety
22    purposes shall be in substantially the following form:
23        "To pay for public safety purposes, shall (name of
24    county) be authorized to impose an increase on its share
25    of local sales taxes by (insert rate) for a period not to
26    exceed (insert number of years)?"

 

 

10300HB4951sam002- 640 -LRB103 38094 HLH 74177 a

1        As additional information on the ballot below the
2    question shall appear the following:
3        "This would mean that a consumer would pay an
4    additional (insert amount) in sales tax for every $100 of
5    tangible personal property bought at retail. If imposed,
6    the additional tax would cease being collected at the end
7    of (insert number of years), if not terminated earlier by
8    a vote of the county board."
9        For the purposes of the paragraph, "public safety
10    purposes" means crime prevention, detention, fire
11    fighting, police, medical, ambulance, or other emergency
12    services.
13        Votes shall be recorded as "Yes" or "No".
14        Beginning on the January 1 or July 1, whichever is
15    first, that occurs not less than 30 days after May 31, 2015
16    (the effective date of Public Act 99-4), Adams County may
17    impose a public safety retailers' occupation tax and
18    service occupation tax at the rate of 0.25%, as provided
19    in the referendum approved by the voters on April 7, 2015,
20    notwithstanding the omission of the additional information
21    that is otherwise required to be printed on the ballot
22    below the question pursuant to this item (1).
23        (2) The proposition for transportation purposes shall
24    be in substantially the following form:
25        "To pay for improvements to roads and other
26    transportation purposes, shall (name of county) be

 

 

10300HB4951sam002- 641 -LRB103 38094 HLH 74177 a

1    authorized to impose an increase on its share of local
2    sales taxes by (insert rate)?"
3        As additional information on the ballot below the
4    question shall appear the following:
5        "This would mean that a consumer would pay an
6    additional (insert amount) in sales tax for every $100 of
7    tangible personal property bought at retail."
8        The county board may also opt to establish a sunset
9    provision at which time the additional sales tax would
10    cease being collected, if not terminated earlier by a vote
11    of the county board. If the county board votes to include a
12    sunset provision, the proposition for transportation
13    purposes shall be in substantially the following form:
14        "To pay for road improvements and other transportation
15    purposes, shall (name of county) be authorized to impose
16    an increase on its share of local sales taxes by (insert
17    rate) for a period not to exceed (insert number of
18    years)?"
19        As additional information on the ballot below the
20    question shall appear the following:
21        "This would mean that a consumer would pay an
22    additional (insert amount) in sales tax for every $100 of
23    tangible personal property bought at retail. If imposed,
24    the additional tax would cease being collected at the end
25    of (insert number of years), if not terminated earlier by
26    a vote of the county board."

 

 

10300HB4951sam002- 642 -LRB103 38094 HLH 74177 a

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

 

 

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1        As additional information on the ballot below the
2    question shall appear the following:
3        "This would mean that a consumer would pay an
4    additional (insert amount) in sales tax for every $100 of
5    tangible personal property bought at retail. If imposed,
6    the additional tax would cease being collected at the end
7    of (insert number of years), if not terminated earlier by
8    a vote of the county board."
9        For purposes of this Section, "public facilities
10    purposes" means the acquisition, development,
11    construction, reconstruction, rehabilitation,
12    improvement, financing, architectural planning, and
13    installation of capital facilities consisting of
14    buildings, structures, and durable equipment and for the
15    acquisition and improvement of real property and interest
16    in real property required, or expected to be required, in
17    connection with the public facilities, for use by the
18    county for the furnishing of governmental services to its
19    citizens, including, but not limited to, museums and
20    nursing homes.
21        The votes shall be recorded as "Yes" or "No".
22        (4) The proposition for mental health purposes shall
23    be in substantially the following form:
24        "To pay for mental health purposes, shall (name of
25    county) be authorized to impose an increase on its share
26    of local sales taxes by (insert rate)?"

 

 

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

 

 

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

 

 

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1        The votes shall be recorded as "Yes" or "No".
2    If a majority of the electors voting on the proposition
3vote in favor of it, the county may impose the tax. A county
4may not submit more than one proposition authorized by this
5Section to the electors at any one time.
6    This additional tax may not be imposed on tangible
7personal property taxed at the 1% rate under the Retailers'
8Occupation Tax Act (or at the 0% rate imposed under this
9amendatory Act of the 102nd General Assembly). Beginning
10December 1, 2019 and through December 31, 2020, this tax is not
11imposed on sales of aviation fuel unless the tax revenue is
12expended for airport-related purposes. If the county does not
13have an airport-related purpose to which it dedicates aviation
14fuel tax revenue, then aviation fuel is excluded from the tax.
15The county must comply with the certification requirements for
16airport-related purposes under Section 2-22 of the Retailers'
17Occupation Tax Act. For purposes of this Section,
18"airport-related purposes" has the meaning ascribed in Section
196z-20.2 of the State Finance Act. Beginning January 1, 2021,
20this tax is not imposed on sales of aviation fuel for so long
21as the revenue use requirements of 49 U.S.C. 47107(b) and 49
22U.S.C. 47133 are binding on the county. The tax imposed by a
23county under this Section and all civil penalties that may be
24assessed as an incident of the tax shall be collected and
25enforced by the Illinois Department of Revenue and deposited
26into a special fund created for that purpose. The certificate

 

 

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1of registration that is issued by the Department to a retailer
2under the Retailers' Occupation Tax Act shall permit the
3retailer to engage in a business that is taxable without
4registering separately with the Department under an ordinance
5or resolution under this Section. The Department has full
6power to administer and enforce this Section, to collect all
7taxes and penalties due under this Section, to dispose of
8taxes and penalties so collected in the manner provided in
9this Section, and to determine all rights to credit memoranda
10arising on account of the erroneous payment of a tax or penalty
11under this Section. In the administration of and compliance
12with this Section, the Department and persons who are subject
13to this Section shall (i) have the same rights, remedies,
14privileges, immunities, powers, and duties, (ii) be subject to
15the same conditions, restrictions, limitations, penalties, and
16definitions of terms, and (iii) employ the same modes of
17procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
181f, 1i, 1j, 1k, 1m, 1n, 2 through 2-70 (in respect to all
19provisions contained in those Sections other than the State
20rate of tax), 2a, 2b, 2c, 3 (except provisions relating to
21transaction returns and quarter monthly payments, and except
22that the retailer's discount is not allowed for taxes paid on
23aviation fuel that are deposited into the Local Government
24Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
255j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13
26of the Retailers' Occupation Tax Act and Section 3-7 of the

 

 

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

 

 

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1rate under the Service Occupation Tax Act (or at the 0% rate
2imposed under this amendatory Act of the 102nd General
3Assembly). Beginning December 1, 2019 and through December 31,
42020, this tax is not imposed on sales of aviation fuel unless
5the tax revenue is expended for airport-related purposes. If
6the county does not have an airport-related purpose to which
7it dedicates aviation fuel tax revenue, then aviation fuel is
8excluded from the tax. The county must comply with the
9certification requirements for airport-related purposes under
10Section 2-22 of the Retailers' Occupation Tax Act. For
11purposes of this Section, "airport-related purposes" has the
12meaning ascribed in Section 6z-20.2 of the State Finance Act.
13Beginning January 1, 2021, this tax is not imposed on sales of
14aviation fuel for so long as the revenue use requirements of 49
15U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
16The tax imposed under this subsection and all civil penalties
17that may be assessed as an incident thereof shall be collected
18and enforced by the Department of Revenue. The Department has
19full power to administer and enforce this subsection; to
20collect all taxes and penalties due hereunder; to dispose of
21taxes and penalties so collected in the manner hereinafter
22provided; and to determine all rights to credit memoranda
23arising on account of the erroneous payment of tax or penalty
24hereunder. In the administration of and compliance with this
25subsection, the Department and persons who are subject to this
26paragraph shall (i) have the same rights, remedies,

 

 

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1privileges, immunities, powers, and duties, (ii) be subject to
2the same conditions, restrictions, limitations, penalties,
3exclusions, exemptions, and definitions of terms, and (iii)
4employ the same modes of procedure as are prescribed in
5Sections 2 (except that the reference to State in the
6definition of supplier maintaining a place of business in this
7State shall mean the county), 2a, 2b, 2c, 3 through 3-50 (in
8respect to all provisions therein other than the State rate of
9tax), 4 (except that the reference to the State shall be to the
10county), 5, 7, 8 (except that the jurisdiction to which the tax
11shall be a debt to the extent indicated in that Section 8 shall
12be the county), 9 (except as to the disposition of taxes and
13penalties collected, and except that the retailer's discount
14is not allowed for taxes paid on aviation fuel that are
15deposited into the Local Government Aviation Trust Fund), 10,
1611, 12 (except the reference therein to Section 2b of the
17Retailers' Occupation Tax Act), 13 (except that any reference
18to the State shall mean the county), Section 15, 16, 17, 18,
1919, and 20 of the Service Occupation Tax Act, and Section 3-7
20of the Uniform Penalty and Interest Act, as fully as if those
21provisions were set forth herein.
22    Persons subject to any tax imposed under the authority
23granted in this subsection may reimburse themselves for their
24serviceman's tax liability by separately stating the tax as an
25additional charge, which charge may be stated in combination,
26in a single amount, with State tax that servicemen are

 

 

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1authorized to collect under the Service Use Tax Act, in
2accordance with such bracket schedules as the Department may
3prescribe.
4    Whenever the Department determines that a refund should be
5made under this subsection to a claimant instead of issuing a
6credit memorandum, the Department shall notify the State
7Comptroller, who shall cause the warrant to be drawn for the
8amount specified, and to the person named, in the notification
9from the Department. The refund shall be paid by the State
10Treasurer out of the County Public Safety, Public Facilities,
11Mental Health, Substance Abuse, or Transportation Retailers'
12Occupation Fund or the Local Government Aviation Trust Fund,
13as appropriate.
14    Nothing in this subsection shall be construed to authorize
15the county to impose a tax upon the privilege of engaging in
16any business which under the Constitution of the United States
17may not be made the subject of taxation by the State.
18    (b-5) If, on January 1, 2025, a unit of local government
19has in effect a tax under this Section, or if, after January 1,
202025, a unit of local government imposes a tax under this
21Section, then that tax applies to leases of tangible personal
22property in effect, entered into, or renewed on or after that
23date in the same manner as the tax under this Section and in
24accordance with the changes made by this amendatory Act of the
25103rd General Assembly.
26    (c) Except as otherwise provided in this paragraph, the

 

 

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1Department shall immediately pay over to the State Treasurer,
2ex officio, as trustee, all taxes and penalties collected
3under this Section to be deposited into the County Public
4Safety, Public Facilities, Mental Health, Substance Abuse, or
5Transportation Retailers' Occupation Tax Fund, which shall be
6an unappropriated trust fund held outside of the State
7treasury. Taxes and penalties collected on aviation fuel sold
8on or after December 1, 2019 and through December 31, 2020,
9shall be immediately paid over by the Department to the State
10Treasurer, ex officio, as trustee, for deposit into the Local
11Government Aviation Trust Fund. The Department shall only pay
12moneys into the Local Government Aviation Trust Fund under
13this Act for so long as the revenue use requirements of 49
14U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
15    As soon as possible after the first day of each month,
16beginning January 1, 2011, upon certification of the
17Department of Revenue, the Comptroller shall order
18transferred, and the Treasurer shall transfer, to the STAR
19Bonds Revenue Fund the local sales tax increment, as defined
20in the Innovation Development and Economy Act, collected under
21this Section during the second preceding calendar month for
22sales within a STAR bond district.
23    After the monthly transfer to the STAR Bonds Revenue Fund,
24on or before the 25th day of each calendar month, the
25Department shall prepare and certify to the Comptroller the
26disbursement of stated sums of money to the counties from

 

 

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

 

 

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

 

 

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1sale is exempt under the United States Constitution as a sale
2in interstate or foreign commerce.
3    (e) Nothing in this Section shall be construed to
4authorize a county to impose a tax upon the privilege of
5engaging in any business that under the Constitution of the
6United States may not be made the subject of taxation by this
7State.
8    (e-5) If a county imposes a tax under this Section, the
9county board may, by ordinance, discontinue or lower the rate
10of the tax. If the county board lowers the tax rate or
11discontinues the tax, a referendum must be held in accordance
12with subsection (a) of this Section in order to increase the
13rate of the tax or to reimpose the discontinued tax.
14    (f) Beginning April 1, 1998 and through December 31, 2013,
15the results of any election authorizing a proposition to
16impose a tax under this Section or effecting a change in the
17rate of tax, or any ordinance lowering the rate or
18discontinuing the tax, shall be certified by the county clerk
19and filed with the Illinois Department of Revenue either (i)
20on or before the first day of April, whereupon the Department
21shall proceed to administer and enforce the tax as of the first
22day of July next following the filing; or (ii) on or before the
23first day of October, whereupon the Department shall proceed
24to administer and enforce the tax as of the first day of
25January next following the filing.
26    Beginning January 1, 2014, the results of any election

 

 

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1authorizing a proposition to impose a tax under this Section
2or effecting an increase in the rate of tax, along with the
3ordinance adopted to impose the tax or increase the rate of the
4tax, or any ordinance adopted to lower the rate or discontinue
5the tax, shall be certified by the county clerk and filed with
6the Illinois Department of Revenue either (i) on or before the
7first day of May, whereupon the Department shall proceed to
8administer and enforce the tax as of the first day of July next
9following the adoption and filing; or (ii) on or before the
10first day of October, whereupon the Department shall proceed
11to administer and enforce the tax as of the first day of
12January next following the adoption and filing.
13    (g) When certifying the amount of a monthly disbursement
14to a county under this Section, the Department shall increase
15or decrease the amounts by an amount necessary to offset any
16miscalculation of previous disbursements. The offset amount
17shall be the amount erroneously disbursed within the previous
186 months from the time a miscalculation is discovered.
19    (g-5) Every county authorized to levy a tax under this
20Section shall, before it levies such tax, establish a 7-member
21mental health board, which shall have the same powers and
22duties and be constituted in the same manner as a community
23mental health board established under the Community Mental
24Health Act. Proceeds of the tax under this Section that are
25earmarked for mental health or substance abuse purposes shall
26be deposited into a special county occupation tax fund for

 

 

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

 

 

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1equipment and for the acquisition and improvement of real
2property and interest in real property required, or expected
3to be required, in connection with the public facilities, for
4use by the county for the furnishing of governmental services
5to its citizens, including, but not limited to, museums and
6nursing homes.
7    (j) The Department may promulgate rules to implement
8Public Act 95-1002 only to the extent necessary to apply the
9existing rules for the Special County Retailers' Occupation
10Tax for Public Safety to this new purpose for public
11facilities.
12(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
13101-275, eff. 8-9-19; 101-604, eff. 12-13-19; 102-379, eff.
141-1-22; 102-700, eff. 4-19-22.)
 
15    (55 ILCS 5/5-1006.7)
16    Sec. 5-1006.7. School facility and resources occupation
17taxes.
18    (a) In any county, a tax shall be imposed upon all persons
19engaged in the business of selling tangible personal property,
20other than personal property titled or registered with an
21agency of this State's government, at retail in the county on
22the gross receipts from the sales made in the course of
23business to provide revenue to be used exclusively for (i)
24school facility purposes (except as otherwise provided in this
25Section), (ii) school resource officers and mental health

 

 

10300HB4951sam002- 659 -LRB103 38094 HLH 74177 a

1professionals, or (iii) school facility purposes, school
2resource officers, and mental health professionals if a
3proposition for the tax has been submitted to the electors of
4that county and approved by a majority of those voting on the
5question as provided in subsection (c). The tax under this
6Section shall be imposed only in one-quarter percent
7increments and may not exceed 1%.
8    This additional tax may not be imposed on tangible
9personal property taxed at the 1% rate under the Retailers'
10Occupation Tax Act (or at the 0% rate imposed under Public Act
11102-700). Beginning December 1, 2019 and through December 31,
122020, this tax is not imposed on sales of aviation fuel unless
13the tax revenue is expended for airport-related purposes. If
14the county does not have an airport-related purpose to which
15it dedicates aviation fuel tax revenue, then aviation fuel is
16excluded from the tax. The county must comply with the
17certification requirements for airport-related purposes under
18Section 2-22 of the Retailers' Occupation Tax Act. For
19purposes of this Section, "airport-related purposes" has the
20meaning ascribed in Section 6z-20.2 of the State Finance Act.
21Beginning January 1, 2021, this tax is not imposed on sales of
22aviation fuel for so long as the revenue use requirements of 49
23U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
24The Department of Revenue has full power to administer and
25enforce this subsection, to collect all taxes and penalties
26due under this subsection, to dispose of taxes and penalties

 

 

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1so collected in the manner provided in this subsection, and to
2determine all rights to credit memoranda arising on account of
3the erroneous payment of a tax or penalty under this
4subsection. The Department shall deposit all taxes and
5penalties collected under this subsection into a special fund
6created for that purpose.
7    In the administration of and compliance with this
8subsection, the Department and persons who are subject to this
9subsection (i) have the same rights, remedies, privileges,
10immunities, powers, and duties, (ii) are subject to the same
11conditions, restrictions, limitations, penalties, and
12definitions of terms, and (iii) shall employ the same modes of
13procedure as are set forth in Sections 1 through 1o, 2 through
142-70 (in respect to all provisions contained in those Sections
15other than the State rate of tax), 2a through 2h, 3 (except as
16to the disposition of taxes and penalties collected, and
17except that the retailer's discount is not allowed for taxes
18paid on aviation fuel that are subject to the revenue use
19requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
205a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c,
216d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
22Occupation Tax Act and all provisions of the Uniform Penalty
23and Interest Act as if those provisions were set forth in this
24subsection.
25    The certificate of registration that is issued by the
26Department to a retailer under the Retailers' Occupation Tax

 

 

10300HB4951sam002- 661 -LRB103 38094 HLH 74177 a

1Act permits the retailer to engage in a business that is
2taxable without registering separately with the Department
3under an ordinance or resolution under this subsection.
4    Persons subject to any tax imposed under the authority
5granted in this subsection may reimburse themselves for their
6seller's tax liability by separately stating that tax as an
7additional charge, which may be stated in combination, in a
8single amount, with State tax that sellers are required to
9collect under the Use Tax Act, pursuant to any bracketed
10schedules set forth by the Department.
11    (b) If a tax has been imposed under subsection (a), then a
12service occupation tax must also be imposed at the same rate
13upon all persons engaged, in the county, in the business of
14making sales of service, who, as an incident to making those
15sales of service, transfer tangible personal property within
16the county as an incident to a sale of service.
17    This tax may not be imposed on tangible personal property
18taxed at the 1% rate under the Service Occupation Tax Act (or
19at the 0% rate imposed under Public Act 102-700). Beginning
20December 1, 2019 and through December 31, 2020, this tax is not
21imposed on sales of aviation fuel unless the tax revenue is
22expended for airport-related purposes. If the county does not
23have an airport-related purpose to which it dedicates aviation
24fuel tax revenue, then aviation fuel is excluded from the tax.
25The county must comply with the certification requirements for
26airport-related purposes under Section 2-22 of the Retailers'

 

 

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1Occupation Tax Act. For purposes of this Section,
2"airport-related purposes" has the meaning ascribed in Section
36z-20.2 of the State Finance Act. Beginning January 1, 2021,
4this tax is not imposed on sales of aviation fuel for so long
5as the revenue use requirements of 49 U.S.C. 47107(b) and 49
6U.S.C. 47133 are binding on the county.
7    The tax imposed under this subsection and all civil
8penalties that may be assessed as an incident thereof shall be
9collected and enforced by the Department and deposited into a
10special fund created for that purpose. The Department has full
11power to administer and enforce this subsection, to collect
12all taxes and penalties due under this subsection, to dispose
13of taxes and penalties so collected in the manner provided in
14this subsection, and to determine all rights to credit
15memoranda arising on account of the erroneous payment of a tax
16or penalty under this subsection.
17    In the administration of and compliance with this
18subsection, the Department and persons who are subject to this
19subsection shall (i) have the same rights, remedies,
20privileges, immunities, powers and duties, (ii) be subject to
21the same conditions, restrictions, limitations, penalties and
22definition of terms, and (iii) employ the same modes of
23procedure as are set forth in Sections 2 (except that that
24reference to State in the definition of supplier maintaining a
25place of business in this State means the county), 2a through
262d, 3 through 3-50 (in respect to all provisions contained in

 

 

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1those Sections other than the State rate of tax), 4 (except
2that the reference to the State shall be to the county), 5, 7,
38 (except that the jurisdiction to which the tax is a debt to
4the extent indicated in that Section 8 is the county), 9
5(except as to the disposition of taxes and penalties
6collected, and except that the retailer's discount is not
7allowed for taxes paid on aviation fuel that are subject to the
8revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
947133), 10, 11, 12 (except the reference therein to Section 2b
10of the Retailers' Occupation Tax Act), 13 (except that any
11reference to the State means the county), 15, 16, 17, 18, 19,
12and 20 of the Service Occupation Tax Act and all provisions of
13the Uniform Penalty and Interest Act, as fully as if those
14provisions were set forth herein.
15    Persons subject to any tax imposed under the authority
16granted in this subsection may reimburse themselves for their
17serviceman's tax liability by separately stating the tax as an
18additional charge, which may be stated in combination, in a
19single amount, with State tax that servicemen are authorized
20to collect under the Service Use Tax Act, pursuant to any
21bracketed schedules set forth by the Department.
22    (b-5) If, on January 1, 2025, a unit of local government
23has in effect a tax under this Section, or if, after January 1,
242025, a unit of local government imposes a tax under this
25Section, then that tax applies to leases of tangible personal
26property in effect, entered into, or renewed on or after that

 

 

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1date in the same manner as the tax under this Section and in
2accordance with the changes made by this amendatory Act of the
3103rd General Assembly.
4    (c) The tax under this Section may not be imposed until the
5question of imposing the tax has been submitted to the
6electors of the county at a regular election and approved by a
7majority of the electors voting on the question. For all
8regular elections held prior to August 23, 2011 (the effective
9date of Public Act 97-542), upon a resolution by the county
10board or a resolution by school district boards that represent
11at least 51% of the student enrollment within the county, the
12county board must certify the question to the proper election
13authority in accordance with the Election Code.
14    For all regular elections held prior to August 23, 2011
15(the effective date of Public Act 97-542), the election
16authority must submit the question in substantially the
17following form:
18        Shall (name of county) be authorized to impose a
19    retailers' occupation tax and a service occupation tax
20    (commonly referred to as a "sales tax") at a rate of
21    (insert rate) to be used exclusively for school facility
22    purposes?
23    The election authority must record the votes as "Yes" or
24"No".
25    If a majority of the electors voting on the question vote
26in the affirmative, then the county may, thereafter, impose

 

 

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1the tax.
2    For all regular elections held on or after August 23, 2011
3(the effective date of Public Act 97-542), the regional
4superintendent of schools for the county must, upon receipt of
5a resolution or resolutions of school district boards that
6represent more than 50% of the student enrollment within the
7county, certify the question to the proper election authority
8for submission to the electors of the county at the next
9regular election at which the question lawfully may be
10submitted to the electors, all in accordance with the Election
11Code.
12    For all regular elections held on or after August 23, 2011
13(the effective date of Public Act 97-542) and before August
1423, 2019 (the effective date of Public Act 101-455), the
15election authority must submit the question in substantially
16the following form:
17        Shall a retailers' occupation tax and a service
18    occupation tax (commonly referred to as a "sales tax") be
19    imposed in (name of county) at a rate of (insert rate) to
20    be used exclusively for school facility purposes?
21    The election authority must record the votes as "Yes" or
22"No".
23    If a majority of the electors voting on the question vote
24in the affirmative, then the tax shall be imposed at the rate
25set forth in the question.
26    For all regular elections held on or after August 23, 2019

 

 

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1(the effective date of Public Act 101-455), the election
2authority must submit the question as follows:
3        (1) If the referendum is to expand the use of revenues
4    from a currently imposed tax exclusively for school
5    facility purposes to include school resource officers and
6    mental health professionals, the question shall be in
7    substantially the following form:
8            In addition to school facility purposes, shall
9        (name of county) school districts be authorized to use
10        revenues from the tax commonly referred to as the
11        school facility sales tax that is currently imposed in
12        (name of county) at a rate of (insert rate) for school
13        resource officers and mental health professionals?
14        (2) If the referendum is to increase the rate of a tax
15    currently imposed exclusively for school facility purposes
16    at less than 1% and dedicate the additional revenues for
17    school resource officers and mental health professionals,
18    the question shall be in substantially the following form:
19            Shall the tax commonly referred to as the school
20        facility sales tax that is currently imposed in (name
21        of county) at the rate of (insert rate) be increased to
22        a rate of (insert rate) with the additional revenues
23        used exclusively for school resource officers and
24        mental health professionals?
25        (3) If the referendum is to impose a tax in a county
26    that has not previously imposed a tax under this Section

 

 

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

 

 

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1        purposes, school resource officers, and mental health
2        professionals?
3    The election authority must record the votes as "Yes" or
4"No".
5    If a majority of the electors voting on the question vote
6in the affirmative, then the tax shall be imposed at the rate
7set forth in the question.
8    For the purposes of this subsection (c), "enrollment"
9means the head count of the students residing in the county on
10the last school day of September of each year, which must be
11reported on the Illinois State Board of Education Public
12School Fall Enrollment/Housing Report.
13    (d) Except as otherwise provided, the Department shall
14immediately pay over to the State Treasurer, ex officio, as
15trustee, all taxes and penalties collected under this Section
16to be deposited into the School Facility Occupation Tax Fund,
17which shall be an unappropriated trust fund held outside the
18State treasury. Taxes and penalties collected on aviation fuel
19sold on or after December 1, 2019 and through December 31,
202020, shall be immediately paid over by the Department to the
21State Treasurer, ex officio, as trustee, for deposit into the
22Local Government Aviation Trust Fund. The Department shall
23only pay moneys into the Local Government Aviation Trust Fund
24under this Section for so long as the revenue use requirements
25of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
26county.

 

 

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1    On or before the 25th day of each calendar month, the
2Department shall prepare and certify to the Comptroller the
3disbursement of stated sums of money to the regional
4superintendents of schools in counties from which retailers or
5servicemen have paid taxes or penalties to the Department
6during the second preceding calendar month. The amount to be
7paid to each regional superintendent of schools and disbursed
8to him or her in accordance with Section 3-14.31 of the School
9Code, is equal to the amount (not including credit memoranda
10and not including taxes and penalties collected on aviation
11fuel sold on or after December 1, 2019 and through December 31,
122020) collected from the county under this Section during the
13second preceding calendar month by the Department, (i) less 2%
14of that amount (except the amount collected on aviation fuel
15sold on or after December 1, 2019 and through December 31,
162020), of which 50% shall be deposited into the Tax Compliance
17and Administration Fund and shall be used by the Department,
18subject to appropriation, to cover the costs of the Department
19in administering and enforcing the provisions of this Section,
20on behalf of the county, and 50% shall be distributed to the
21regional superintendent of schools to cover the costs in
22administering and enforcing the provisions of this Section;
23(ii) plus an amount that the Department determines is
24necessary to offset any amounts that were erroneously paid to
25a different taxing body; (iii) less an amount equal to the
26amount of refunds made during the second preceding calendar

 

 

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1month by the Department on behalf of the county; and (iv) less
2any amount that the Department determines is necessary to
3offset any amounts that were payable to a different taxing
4body but were erroneously paid to the county. When certifying
5the amount of a monthly disbursement to a regional
6superintendent of schools under this Section, the Department
7shall increase or decrease the amounts by an amount necessary
8to offset any miscalculation of previous disbursements within
9the previous 6 months from the time a miscalculation is
10discovered.
11    Within 10 days after receipt by the Comptroller from the
12Department of the disbursement certification to the regional
13superintendents of the schools provided for in this Section,
14the Comptroller shall cause the orders to be drawn for the
15respective amounts in accordance with directions contained in
16the certification.
17    If the Department determines that a refund should be made
18under this Section to a claimant instead of issuing a credit
19memorandum, then the Department shall notify the Comptroller,
20who shall cause the order to be drawn for the amount specified
21and to the person named in the notification from the
22Department. The refund shall be paid by the Treasurer out of
23the School Facility Occupation Tax Fund or the Local
24Government Aviation Trust Fund, as appropriate.
25    (e) For the purposes of determining the local governmental
26unit whose tax is applicable, a retail sale by a producer of

 

 

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1coal or another mineral mined in Illinois is a sale at retail
2at the place where the coal or other mineral mined in Illinois
3is extracted from the earth. This subsection does not apply to
4coal or another mineral when it is delivered or shipped by the
5seller to the purchaser at a point outside Illinois so that the
6sale is exempt under the United States Constitution as a sale
7in interstate or foreign commerce.
8    (f) Nothing in this Section may be construed to authorize
9a tax to be imposed upon the privilege of engaging in any
10business that under the Constitution of the United States may
11not be made the subject of taxation by this State.
12    (g) If a county board imposes a tax under this Section
13pursuant to a referendum held before August 23, 2011 (the
14effective date of Public Act 97-542) at a rate below the rate
15set forth in the question approved by a majority of electors of
16that county voting on the question as provided in subsection
17(c), then the county board may, by ordinance, increase the
18rate of the tax up to the rate set forth in the question
19approved by a majority of electors of that county voting on the
20question as provided in subsection (c). If a county board
21imposes a tax under this Section pursuant to a referendum held
22before August 23, 2011 (the effective date of Public Act
2397-542), then the board may, by ordinance, discontinue or
24reduce the rate of the tax. If a tax is imposed under this
25Section pursuant to a referendum held on or after August 23,
262011 (the effective date of Public Act 97-542) and before

 

 

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1August 23, 2019 (the effective date of Public Act 101-455),
2then the county board may reduce or discontinue the tax, but
3only in accordance with subsection (h-5) of this Section. If a
4tax is imposed under this Section pursuant to a referendum
5held on or after August 23, 2019 (the effective date of Public
6Act 101-455), then the county board may reduce or discontinue
7the tax, but only in accordance with subsection (h-10). If,
8however, a school board issues bonds that are secured by the
9proceeds of the tax under this Section, then the county board
10may not reduce the tax rate or discontinue the tax if that rate
11reduction or discontinuance would adversely affect the school
12board's ability to pay the principal and interest on those
13bonds as they become due or necessitate the extension of
14additional property taxes to pay the principal and interest on
15those bonds. If the county board reduces the tax rate or
16discontinues the tax, then a referendum must be held in
17accordance with subsection (c) of this Section in order to
18increase the rate of the tax or to reimpose the discontinued
19tax.
20    Until January 1, 2014, the results of any election that
21imposes, reduces, or discontinues a tax under this Section
22must be certified by the election authority, and any ordinance
23that increases or lowers the rate or discontinues the tax must
24be certified by the county clerk and, in each case, filed with
25the Illinois Department of Revenue either (i) on or before the
26first day of April, whereupon the Department shall proceed to

 

 

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1administer and enforce the tax or change in the rate as of the
2first day of July next following the filing; or (ii) on or
3before the first day of October, whereupon the Department
4shall proceed to administer and enforce the tax or change in
5the rate as of the first day of January next following the
6filing.
7    Beginning January 1, 2014, the results of any election
8that imposes, reduces, or discontinues a tax under this
9Section must be certified by the election authority, and any
10ordinance that increases or lowers the rate or discontinues
11the tax must be certified by the county clerk and, in each
12case, filed with the Illinois Department of Revenue either (i)
13on or before the first day of May, whereupon the Department
14shall proceed to administer and enforce the tax or change in
15the rate as of the first day of July next following the filing;
16or (ii) on or before the first day of October, whereupon the
17Department shall proceed to administer and enforce the tax or
18change in the rate as of the first day of January next
19following the filing.
20    (h) For purposes of this Section, "school facility
21purposes" means (i) the acquisition, development,
22construction, reconstruction, rehabilitation, improvement,
23financing, architectural planning, and installation of capital
24facilities consisting of buildings, structures, and durable
25equipment and for the acquisition and improvement of real
26property and interest in real property required, or expected

 

 

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1to be required, in connection with the capital facilities and
2(ii) the payment of bonds or other obligations heretofore or
3hereafter issued, including bonds or other obligations
4heretofore or hereafter issued to refund or to continue to
5refund bonds or other obligations issued, for school facility
6purposes, provided that the taxes levied to pay those bonds
7are abated by the amount of the taxes imposed under this
8Section that are used to pay those bonds. "School facility
9purposes" also includes fire prevention, safety, energy
10conservation, accessibility, school security, and specified
11repair purposes set forth under Section 17-2.11 of the School
12Code.
13    (h-5) A county board in a county where a tax has been
14imposed under this Section pursuant to a referendum held on or
15after August 23, 2011 (the effective date of Public Act
1697-542) and before August 23, 2019 (the effective date of
17Public Act 101-455) may, by ordinance or resolution, submit to
18the voters of the county the question of reducing or
19discontinuing the tax. In the ordinance or resolution, the
20county board shall certify the question to the proper election
21authority in accordance with the Election Code. The election
22authority must submit the question in substantially the
23following form:
24        Shall the school facility retailers' occupation tax
25    and service occupation tax (commonly referred to as the
26    "school facility sales tax") currently imposed in (name of

 

 

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1    county) at a rate of (insert rate) be (reduced to (insert
2    rate))(discontinued)?
3If a majority of the electors voting on the question vote in
4the affirmative, then, subject to the provisions of subsection
5(g) of this Section, the tax shall be reduced or discontinued
6as set forth in the question.
7    (h-10) A county board in a county where a tax has been
8imposed under this Section pursuant to a referendum held on or
9after August 23, 2019 (the effective date of Public Act
10101-455) may, by ordinance or resolution, submit to the voters
11of the county the question of reducing or discontinuing the
12tax. In the ordinance or resolution, the county board shall
13certify the question to the proper election authority in
14accordance with the Election Code. The election authority must
15submit the question in substantially the following form:
16        Shall the school facility and resources retailers'
17    occupation tax and service occupation tax (commonly
18    referred to as the school facility and resources sales
19    tax) currently imposed in (name of county) at a rate of
20    (insert rate) be (reduced to (insert rate))
21    (discontinued)?
22    The election authority must record the votes as "Yes" or
23"No".
24    If a majority of the electors voting on the question vote
25in the affirmative, then, subject to the provisions of
26subsection (g) of this Section, the tax shall be reduced or

 

 

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1discontinued as set forth in the question.
2    (i) This Section does not apply to Cook County.
3    (j) This Section may be cited as the County School
4Facility and Resources Occupation Tax Law.
5(Source: P.A. 102-700, eff. 4-19-22; 102-1062, eff. 7-1-22;
6103-154, eff. 6-30-23.)
 
7    (55 ILCS 5/5-1007)  (from Ch. 34, par. 5-1007)
8    Sec. 5-1007. Home Rule County Service Occupation Tax Law.
9The corporate authorities of a home rule county may impose a
10tax upon all persons engaged, in such county, in the business
11of making sales of service at the same rate of tax imposed
12pursuant to Section 5-1006 of the selling price of all
13tangible personal property transferred by such servicemen
14either in the form of tangible personal property or in the form
15of real estate as an incident to a sale of service. If imposed,
16such tax shall only be imposed in 1/4% increments. On and after
17September 1, 1991, this additional tax may not be imposed on
18tangible personal property taxed at the 1% rate under the
19Service Occupation Tax Act (or at the 0% rate imposed under
20this amendatory Act of the 102nd General Assembly). Beginning
21December 1, 2019, this tax is not imposed on sales of aviation
22fuel unless the tax revenue is expended for airport-related
23purposes. If the county does not have an airport-related
24purpose to which it dedicates aviation fuel tax revenue, then
25aviation fuel is excluded from the tax. The county must comply

 

 

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

 

 

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1hereunder. In the administration of, and compliance with, this
2Section the Department and persons who are subject to this
3Section shall have the same rights, remedies, privileges,
4immunities, powers and duties, and be subject to the same
5conditions, restrictions, limitations, penalties and
6definitions of terms, and employ the same modes of procedure,
7as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
8respect to all provisions therein other than the State rate of
9tax), 4 (except that the reference to the State shall be to the
10taxing county), 5, 7, 8 (except that the jurisdiction to which
11the tax shall be a debt to the extent indicated in that Section
128 shall be the taxing county), 9 (except as to the disposition
13of taxes and penalties collected, and except that the returned
14merchandise credit for this county tax may not be taken
15against any State tax, and except that the retailer's discount
16is not allowed for taxes paid on aviation fuel that are subject
17to the revenue use requirements of 49 U.S.C. 47107(b) and 49
18U.S.C. 47133), 10, 11, 12 (except the reference therein to
19Section 2b of the Retailers' Occupation Tax Act), 13 (except
20that any reference to the State shall mean the taxing county),
21the first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
22Service Occupation Tax Act and Section 3-7 of the Uniform
23Penalty and Interest Act, as fully as if those provisions were
24set forth herein.
25    No tax may be imposed by a home rule county pursuant to
26this Section unless such county also imposes a tax at the same

 

 

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1rate pursuant to Section 5-1006.
2    If, on January 1, 2025, a unit of local government has in
3effect a tax under this Section, or if, after January 1, 2025,
4a unit of local government imposes a tax under this Section,
5then that tax applies to leases of tangible personal property
6in effect, entered into, or renewed on or after that date in
7the same manner as the tax under this Section and in accordance
8with the changes made by this amendatory Act of the 103rd
9General Assembly.
10    Persons subject to any tax imposed pursuant to the
11authority granted in this Section may reimburse themselves for
12their serviceman's tax liability hereunder by separately
13stating such tax as an additional charge, which charge may be
14stated in combination, in a single amount, with State tax
15which servicemen are authorized to collect under the Service
16Use Tax Act, pursuant to such bracket schedules as the
17Department may prescribe.
18    Whenever the Department determines that a refund should be
19made under this Section to a claimant instead of issuing
20credit memorandum, the Department shall notify the State
21Comptroller, who shall cause the order to be drawn for the
22amount specified, and to the person named, in such
23notification from the Department. Such refund shall be paid by
24the State Treasurer out of the home rule county retailers'
25occupation tax fund or the Local Government Aviation Trust
26Fund, as appropriate.

 

 

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1    Except as otherwise provided in this paragraph, the
2Department shall forthwith pay over to the State Treasurer, ex
3officio, as trustee, all taxes and penalties collected
4hereunder for deposit into the Home Rule County Retailers'
5Occupation Tax Fund. Taxes and penalties collected on aviation
6fuel sold on or after December 1, 2019, shall be immediately
7paid over by the Department to the State Treasurer, ex
8officio, as trustee, for deposit into the Local Government
9Aviation Trust Fund. The Department shall only pay moneys into
10the Local Government Aviation Trust Fund under this Section
11for so long as the revenue use requirements of 49 U.S.C.
1247107(b) and 49 U.S.C. 47133 are binding on the county.
13    As soon as possible after the first day of each month,
14beginning January 1, 2011, upon certification of the
15Department of Revenue, the Comptroller shall order
16transferred, and the Treasurer shall transfer, to the STAR
17Bonds Revenue Fund the local sales tax increment, as defined
18in the Innovation Development and Economy Act, collected under
19this Section during the second preceding calendar month for
20sales within a STAR bond district.
21    After the monthly transfer to the STAR Bonds Revenue Fund,
22on or before the 25th day of each calendar month, the
23Department shall prepare and certify to the Comptroller the
24disbursement of stated sums of money to named counties, the
25counties to be those from which suppliers and servicemen have
26paid taxes or penalties hereunder to the Department during the

 

 

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1second preceding calendar month. The amount to be paid to each
2county shall be the amount (not including credit memoranda and
3not including taxes and penalties collected on aviation fuel
4sold on or after December 1, 2019) collected hereunder during
5the second preceding calendar month by the Department, and not
6including an amount equal to the amount of refunds made during
7the second preceding calendar month by the Department on
8behalf of such county, and not including any amounts that are
9transferred to the STAR Bonds Revenue Fund, less 1.5% of the
10remainder, which the Department shall transfer into the Tax
11Compliance and Administration Fund. The Department, at the
12time of each monthly disbursement to the counties, shall
13prepare and certify to the State Comptroller the amount to be
14transferred into the Tax Compliance and Administration Fund
15under this Section. Within 10 days after receipt, by the
16Comptroller, of the disbursement certification to the counties
17and the Tax Compliance and Administration Fund provided for in
18this Section to be given to the Comptroller by the Department,
19the Comptroller shall cause the orders to be drawn for the
20respective amounts in accordance with the directions contained
21in such certification.
22    In addition to the disbursement required by the preceding
23paragraph, an allocation shall be made in each year to each
24county which received more than $500,000 in disbursements
25under the preceding paragraph in the preceding calendar year.
26The allocation shall be in an amount equal to the average

 

 

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1monthly distribution made to each such county under the
2preceding paragraph during the preceding calendar year
3(excluding the 2 months of highest receipts). The distribution
4made in March of each year subsequent to the year in which an
5allocation was made pursuant to this paragraph and the
6preceding paragraph shall be reduced by the amount allocated
7and disbursed under this paragraph in the preceding calendar
8year. The Department shall prepare and certify to the
9Comptroller for disbursement the allocations made in
10accordance with this paragraph.
11    Nothing in this Section shall be construed to authorize a
12county to impose a tax upon the privilege of engaging in any
13business which under the Constitution of the United States may
14not be made the subject of taxation by this State.
15    An ordinance or resolution imposing or discontinuing a tax
16hereunder or effecting a change in the rate thereof shall be
17adopted and a certified copy thereof filed with the Department
18on or before the first day of June, whereupon the Department
19shall proceed to administer and enforce this Section as of the
20first day of September next following such adoption and
21filing. Beginning January 1, 1992, an ordinance or resolution
22imposing or discontinuing the tax hereunder or effecting a
23change in the rate thereof shall be adopted and a certified
24copy thereof filed with the Department on or before the first
25day of July, whereupon the Department shall proceed to
26administer and enforce this Section as of the first day of

 

 

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1October next following such adoption and filing. Beginning
2January 1, 1993, an ordinance or resolution imposing or
3discontinuing the tax hereunder or effecting a change in the
4rate thereof shall be adopted and a certified copy thereof
5filed with the Department on or before the first day of
6October, whereupon the Department shall proceed to administer
7and enforce this Section as of the first day of January next
8following such adoption and filing. Beginning April 1, 1998,
9an ordinance or resolution imposing or discontinuing the tax
10hereunder or effecting a change in the rate thereof shall
11either (i) be adopted and a certified copy thereof filed with
12the Department on or before the first day of April, whereupon
13the Department shall proceed to administer and enforce this
14Section as of the first day of July next following the adoption
15and filing; or (ii) be adopted and a certified copy thereof
16filed with the Department on or before the first day of
17October, whereupon the Department shall proceed to administer
18and enforce this Section as of the first day of January next
19following the adoption and filing.
20    This Section shall be known and may be cited as the Home
21Rule County Service Occupation Tax Law.
22(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
23101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
24    (55 ILCS 5/5-1008.5)
25    Sec. 5-1008.5. Use and occupation taxes.

 

 

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1    (a) The Rock Island County Board may adopt a resolution
2that authorizes a referendum on the question of whether the
3county shall be authorized to impose a retailers' occupation
4tax, a service occupation tax, and a use tax at a rate of 1/4
5of 1% on behalf of the economic development activities of Rock
6Island County and communities located within the county. The
7county board shall certify the question to the proper election
8authorities who shall submit the question to the voters of the
9county at the next regularly scheduled election in accordance
10with the general election law. The question shall be in
11substantially the following form:
12        Shall Rock Island County be authorized to impose a
13    retailers' occupation tax, a service occupation tax, and a
14    use tax at the rate of 1/4 of 1% for the sole purpose of
15    economic development activities, including creation and
16    retention of job opportunities, support of affordable
17    housing opportunities, and enhancement of quality of life
18    improvements?
19    Votes shall be recorded as "yes" or "no". If a majority of
20all votes cast on the proposition are in favor of the
21proposition, the county is authorized to impose the tax.
22    (b) The county shall impose the retailers' occupation tax
23upon all persons engaged in the business of selling tangible
24personal property at retail in the county, at the rate
25approved by referendum, on the gross receipts from the sales
26made in the course of those businesses within the county. This

 

 

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1additional tax may not be imposed on tangible personal
2property taxed at the 1% rate under the Retailers' Occupation
3Tax Act. Beginning December 1, 2019, this tax is not imposed on
4sales of aviation fuel unless the tax revenue is expended for
5airport-related purposes. If the county does not have an
6airport-related purpose to which it dedicates aviation fuel
7tax revenue, then aviation fuel is excluded from the tax. The
8county must comply with the certification requirements for
9airport-related purposes under Section 2-22 of the Retailers'
10Occupation Tax Act. For purposes of this Section,
11"airport-related purposes" has the meaning ascribed in Section
126z-20.2 of the State Finance Act. This exclusion for aviation
13fuel only applies for so long as the revenue use requirements
14of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
15county. The tax imposed under this Section and all civil
16penalties that may be assessed as an incident of the tax shall
17be collected and enforced by the Department of Revenue. The
18Department has full power to administer and enforce this
19Section; to collect all taxes and penalties so collected in
20the manner provided in this Section; and to determine all
21rights to credit memoranda arising on account of the erroneous
22payment of tax or penalty under this Section. In the
23administration of, and compliance with, this Section, the
24Department and persons who are subject to this Section shall
25(i) have the same rights, remedies, privileges, immunities,
26powers and duties, (ii) be subject to the same conditions,

 

 

10300HB4951sam002- 686 -LRB103 38094 HLH 74177 a

1restrictions, limitations, penalties, exclusions, exemptions,
2and definitions of terms, and (iii) employ the same modes of
3procedure as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
41e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to
5all provisions other than the State rate of tax), 2-15 through
62-70, 2a, 2b, 2c, 3 (except as to the disposition of taxes and
7penalties collected and provisions related to quarter monthly
8payments, and except that the retailer's discount is not
9allowed for taxes paid on aviation fuel that are subject to the
10revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1147133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6,
126a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
13Occupation Tax Act and Section 3-7 of the Uniform Penalty and
14Interest Act, as fully as if those provisions were set forth in
15this subsection.
16    Persons subject to any tax imposed under this subsection
17may reimburse themselves for their seller's tax liability by
18separately stating the tax as an additional charge, which
19charge may be stated in combination, in a single amount, with
20State taxes that sellers are required to collect, in
21accordance with bracket schedules prescribed by the
22Department.
23    Whenever the Department determines that a refund should be
24made under this subsection to a claimant instead of issuing a
25credit memorandum, the Department shall notify the State
26Comptroller, who shall cause the warrant to be drawn for the

 

 

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1amount specified, and to the person named, in the notification
2from the Department. The refund shall be paid by the State
3Treasurer out of the tax fund referenced under paragraph (g)
4of this Section or the Local Government Aviation Trust Fund,
5as appropriate.
6    If a tax is imposed under this subsection (b), a tax shall
7also be imposed at the same rate under subsections (c) and (d)
8of this Section.
9    For the purpose of determining whether a tax authorized
10under this Section is applicable, a retail sale, by a producer
11of coal or another mineral mined in Illinois, is a sale at
12retail at the place where the coal or other mineral mined in
13Illinois is extracted from the earth. This paragraph does not
14apply to coal or another mineral when it is delivered or
15shipped by the seller to the purchaser at a point outside
16Illinois so that the sale is exempt under the federal
17Constitution as a sale in interstate or foreign commerce.
18    Nothing in this Section shall be construed to authorize
19the county to impose a tax upon the privilege of engaging in
20any business that under the Constitution of the United States
21may not be made the subject of taxation by this State.
22    (c) If a tax has been imposed under subsection (b), a
23service occupation tax shall also be imposed at the same rate
24upon all persons engaged, in the county, in the business of
25making sales of service, who, as an incident to making those
26sales of service, transfer tangible personal property within

 

 

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

 

 

10300HB4951sam002- 689 -LRB103 38094 HLH 74177 a

1remedies, privileges, immunities, powers, and duties, (ii) be
2subject to the same conditions, restrictions, limitations,
3penalties, exclusions, exemptions, and definitions of terms,
4and (iii) employ the same modes of procedure as are prescribed
5in Sections 2 (except that the reference to State in the
6definition of supplier maintaining a place of business in this
7State shall mean the county), 2a, 2b, 3 through 3-55 (in
8respect to all provisions other than the State rate of tax), 4
9(except that the reference to the State shall be to the
10county), 5, 7, 8 (except that the jurisdiction to which the tax
11shall be a debt to the extent indicated in that Section 8 shall
12be the county), 9 (except as to the disposition of taxes and
13penalties collected, and except that the returned merchandise
14credit for this tax may not be taken against any State tax, and
15except that the retailer's discount is not allowed for taxes
16paid on aviation fuel that are subject to the revenue use
17requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 11,
1812 (except the reference to Section 2b of the Retailers'
19Occupation Tax Act), 13 (except that any reference to the
20State shall mean the county), 15, 16, 17, 18, 19 and 20 of the
21Service Occupation Tax Act and Section 3-7 of the Uniform
22Penalty and Interest Act, as fully as if those provisions were
23set forth in this subsection.
24    Persons subject to any tax imposed under the authority
25granted in this subsection may reimburse themselves for their
26serviceman's tax liability by separately stating the tax as an

 

 

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1additional charge, which charge may be stated in combination,
2in a single amount, with State tax that servicemen are
3authorized to collect under the Service Use Tax Act, in
4accordance with bracket schedules prescribed by the
5Department.
6    Whenever the Department determines that a refund should be
7made under this subsection to a claimant instead of issuing a
8credit memorandum, the Department shall notify the State
9Comptroller, who shall cause the warrant to be drawn for the
10amount specified, and to the person named, in the notification
11from the Department. The refund shall be paid by the State
12Treasurer out of the tax fund referenced under paragraph (g)
13of this Section or the Local Government Aviation Trust Fund,
14as appropriate.
15    Nothing in this paragraph shall be construed to authorize
16the county to impose a tax upon the privilege of engaging in
17any business that under the Constitution of the United States
18may not be made the subject of taxation by the State.
19    (c-5) If, on January 1, 2025, a unit of local government
20has in effect a tax under this Section, or if, after January 1,
212025, a unit of local government imposes a tax under this
22Section, then that tax applies to leases of tangible personal
23property in effect, entered into, or renewed on or after that
24date in the same manner as the tax under this Section and in
25accordance with the changes made by this amendatory Act of the
26103rd General Assembly.

 

 

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1    (d) If a tax has been imposed under subsection (b), a use
2tax shall also be imposed at the same rate upon the privilege
3of using, in the county, any item of tangible personal
4property that is purchased outside the county at retail from a
5retailer, and that is titled or registered at a location
6within the county with an agency of this State's government.
7"Selling price" is defined as in the Use Tax Act. The tax shall
8be collected from persons whose Illinois address for titling
9or registration purposes is given as being in the county. The
10tax shall be collected by the Department of Revenue for the
11county. The tax must be paid to the State, or an exemption
12determination must be obtained from the Department of Revenue,
13before the title or certificate of registration for the
14property may be issued. The tax or proof of exemption may be
15transmitted to the Department by way of the State agency with
16which, or the State officer with whom, the tangible personal
17property must be titled or registered if the Department and
18the State agency or State officer determine that this
19procedure will expedite the processing of applications for
20title or registration.
21    The Department has full power to administer and enforce
22this paragraph; to collect all taxes, penalties, and interest
23due under this Section; to dispose of taxes, penalties, and
24interest so collected in the manner provided in this Section;
25and to determine all rights to credit memoranda or refunds
26arising on account of the erroneous payment of tax, penalty,

 

 

10300HB4951sam002- 692 -LRB103 38094 HLH 74177 a

1or interest under this Section. In the administration of, and
2compliance with, this subsection, the Department and persons
3who are subject to this paragraph shall (i) have the same
4rights, remedies, privileges, immunities, powers, and duties,
5(ii) be subject to the same conditions, restrictions,
6limitations, penalties, exclusions, exemptions, and
7definitions of terms, and (iii) employ the same modes of
8procedure as are prescribed in Sections 2 (except the
9definition of "retailer maintaining a place of business in
10this State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a,
114, 6, 7, 8 (except that the jurisdiction to which the tax shall
12be a debt to the extent indicated in that Section 8 shall be
13the county), 9 (except provisions relating to quarter monthly
14payments), 10, 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22
15of the Use Tax Act and Section 3-7 of the Uniform Penalty and
16Interest Act, that are not inconsistent with this paragraph,
17as fully as if those provisions were set forth in this
18subsection.
19    Whenever the Department determines that a refund should be
20made under this subsection to a claimant instead of issuing a
21credit memorandum, the Department shall notify the State
22Comptroller, who shall cause the order to be drawn for the
23amount specified, and to the person named, in the notification
24from the Department. The refund shall be paid by the State
25Treasurer out of the tax fund referenced under paragraph (g)
26of this Section.

 

 

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1    (e) A certificate of registration issued by the State
2Department of Revenue to a retailer under the Retailers'
3Occupation Tax Act or under the Service Occupation Tax Act
4shall permit the registrant to engage in a business that is
5taxed under the tax imposed under paragraphs (b), (c), or (d)
6of this Section and no additional registration shall be
7required. A certificate issued under the Use Tax Act or the
8Service Use Tax Act shall be applicable with regard to any tax
9imposed under paragraph (c) of this Section.
10    (f) The results of any election authorizing a proposition
11to impose a tax under this Section or effecting a change in the
12rate of tax shall be certified by the proper election
13authorities and filed with the Illinois Department on or
14before the first day of October. In addition, an ordinance
15imposing, discontinuing, or effecting a change in the rate of
16tax under this Section shall be adopted and a certified copy of
17the ordinance filed with the Department on or before the first
18day of October. After proper receipt of the certifications,
19the Department shall proceed to administer and enforce this
20Section as of the first day of January next following the
21adoption and filing.
22    (g) Except as otherwise provided in paragraph (g-2), the
23Department of Revenue shall, upon collecting any taxes and
24penalties as provided in this Section, pay the taxes and
25penalties over to the State Treasurer as trustee for the
26county. The taxes and penalties shall be held in a trust fund

 

 

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1outside the State Treasury. On or before the 25th day of each
2calendar month, the Department of Revenue shall prepare and
3certify to the Comptroller of the State of Illinois the amount
4to be paid to the county, which shall be the balance in the
5fund, less any amount determined by the Department to be
6necessary for the payment of refunds. Within 10 days after
7receipt by the Comptroller of the certification of the amount
8to be paid to the county, the Comptroller shall cause an order
9to be drawn for payment for the amount in accordance with the
10directions contained in the certification. Amounts received
11from the tax imposed under this Section shall be used only for
12the economic development activities of the county and
13communities located within the county.
14    (g-2) Taxes and penalties collected on aviation fuel sold
15on or after December 1, 2019, shall be immediately paid over by
16the Department to the State Treasurer, ex officio, as trustee,
17for deposit into the Local Government Aviation Trust Fund. The
18Department shall only pay moneys into the Local Government
19Aviation Trust Fund under this Section for so long as the
20revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2147133 are binding on the county.
22    (h) When certifying the amount of a monthly disbursement
23to the county under this Section, the Department shall
24increase or decrease the amounts by an amount necessary to
25offset any miscalculation of previous disbursements. The
26offset amount shall be the amount erroneously disbursed within

 

 

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1the previous 6 months from the time a miscalculation is
2discovered.
3    (i) This Section may be cited as the Rock Island County Use
4and Occupation Tax Law.
5(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19;
6101-604, eff. 12-13-19.)
 
7    Section 75-35. The Illinois Municipal Code is amended by
8changing Sections 8-11-1, 8-11-1.3, 8-11-1.4, 8-11-1.6,
98-11-1.7, and 11-74.3-6 as follows:
 
10    (65 ILCS 5/8-11-1)  (from Ch. 24, par. 8-11-1)
11    Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
12Act. The corporate authorities of a home rule municipality may
13impose a tax upon all persons engaged in the business of
14selling tangible personal property, other than an item of
15tangible personal property titled or registered with an agency
16of this State's government, at retail in the municipality on
17the gross receipts from these sales made in the course of such
18business. If imposed, the tax shall only be imposed in 1/4%
19increments. On and after September 1, 1991, this additional
20tax may not be imposed on tangible personal property taxed at
21the 1% rate under the Retailers' Occupation Tax Act (or at the
220% rate imposed under this amendatory Act of the 102nd General
23Assembly). Beginning December 1, 2019, this tax is not imposed
24on sales of aviation fuel unless the tax revenue is expended

 

 

10300HB4951sam002- 696 -LRB103 38094 HLH 74177 a

1for airport-related purposes. If a municipality does not have
2an airport-related purpose to which it dedicates aviation fuel
3tax revenue, then aviation fuel is excluded from the tax. Each
4municipality must comply with the certification requirements
5for airport-related purposes under Section 2-22 of the
6Retailers' Occupation Tax Act. For purposes of this Section,
7"airport-related purposes" has the meaning ascribed in Section
86z-20.2 of the State Finance Act. This exclusion for aviation
9fuel only applies for so long as the revenue use requirements
10of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
11municipality. The changes made to this Section by this
12amendatory Act of the 101st General Assembly are a denial and
13limitation of home rule powers and functions under subsection
14(g) of Section 6 of Article VII of the Illinois Constitution.
15The tax imposed by a home rule municipality under this Section
16and all civil penalties that may be assessed as an incident of
17the tax shall be collected and enforced by the State
18Department of Revenue. The certificate of registration that is
19issued by the Department to a retailer under the Retailers'
20Occupation Tax Act shall permit the retailer to engage in a
21business that is taxable under any ordinance or resolution
22enacted pursuant to this Section without registering
23separately with the Department under such ordinance or
24resolution or under this Section. The Department shall have
25full power to administer and enforce this Section; to collect
26all taxes and penalties due hereunder; to dispose of taxes and

 

 

10300HB4951sam002- 697 -LRB103 38094 HLH 74177 a

1penalties so collected in the manner hereinafter provided; and
2to determine all rights to credit memoranda arising on account
3of the erroneous payment of tax or penalty hereunder. In the
4administration of, and compliance with, this Section the
5Department and persons who are subject to this Section shall
6have the same rights, remedies, privileges, immunities, powers
7and duties, and be subject to the same conditions,
8restrictions, limitations, penalties and definitions of terms,
9and employ the same modes of procedure, as are prescribed in
10Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65
11(in respect to all provisions therein other than the State
12rate of tax), 2c, 3 (except as to the disposition of taxes and
13penalties collected, and except that the retailer's discount
14is not allowed for taxes paid on aviation fuel that are subject
15to the revenue use requirements of 49 U.S.C. 47107(b) and 49
16U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
175k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
18Retailers' Occupation Tax Act and Section 3-7 of the Uniform
19Penalty and Interest Act, as fully as if those provisions were
20set forth herein.
21    No tax may be imposed by a home rule municipality under
22this Section unless the municipality also imposes a tax at the
23same rate under Section 8-11-5 of this Act.
24    If, on January 1, 2025, a unit of local government has in
25effect a tax under this Section, or if, after January 1, 2025,
26a unit of local government imposes a tax under this Section,

 

 

10300HB4951sam002- 698 -LRB103 38094 HLH 74177 a

1then that tax applies to leases of tangible personal property
2in effect, entered into, or renewed on or after that date in
3the same manner as the tax under this Section and in accordance
4with the changes made by this amendatory Act of the 103rd
5General Assembly.
6    Persons subject to any tax imposed under the authority
7granted in this Section may reimburse themselves for their
8seller's tax liability hereunder by separately stating that
9tax as an additional charge, which charge may be stated in
10combination, in a single amount, with State tax which sellers
11are required to collect under the Use Tax Act, pursuant to such
12bracket schedules as the Department may prescribe.
13    Whenever the Department determines that a refund should be
14made under this Section to a claimant instead of issuing a
15credit memorandum, the Department shall notify the State
16Comptroller, who shall cause the order to be drawn for the
17amount specified and to the person named in the notification
18from the Department. The refund shall be paid by the State
19Treasurer out of the home rule municipal retailers' occupation
20tax fund or the Local Government Aviation Trust Fund, as
21appropriate.
22    Except as otherwise provided in this paragraph, the
23Department shall immediately pay over to the State Treasurer,
24ex officio, as trustee, all taxes and penalties collected
25hereunder for deposit into the Home Rule Municipal Retailers'
26Occupation Tax Fund. Taxes and penalties collected on aviation

 

 

10300HB4951sam002- 699 -LRB103 38094 HLH 74177 a

1fuel sold on or after December 1, 2019, shall be immediately
2paid over by the Department to the State Treasurer, ex
3officio, as trustee, for deposit into the Local Government
4Aviation Trust Fund. The Department shall only pay moneys into
5the Local Government Aviation Trust Fund under this Section
6for so long as the revenue use requirements of 49 U.S.C.
747107(b) and 49 U.S.C. 47133 are binding on the State.
8    As soon as possible after the first day of each month,
9beginning January 1, 2011, upon certification of the
10Department of Revenue, the Comptroller shall order
11transferred, and the Treasurer shall transfer, to the STAR
12Bonds Revenue Fund the local sales tax increment, as defined
13in the Innovation Development and Economy Act, collected under
14this Section during the second preceding calendar month for
15sales within a STAR bond district.
16    After the monthly transfer to the STAR Bonds Revenue Fund,
17on or before the 25th day of each calendar month, the
18Department shall prepare and certify to the Comptroller the
19disbursement of stated sums of money to named municipalities,
20the municipalities to be those from which retailers have paid
21taxes or penalties hereunder to the Department during the
22second preceding calendar month. The amount to be paid to each
23municipality shall be the amount (not including credit
24memoranda and not including taxes and penalties collected on
25aviation fuel sold on or after December 1, 2019) collected
26hereunder during the second preceding calendar month by the

 

 

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1Department plus an amount the Department determines is
2necessary to offset any amounts that were erroneously paid to
3a different taxing body, and not including an amount equal to
4the amount of refunds made during the second preceding
5calendar month by the Department on behalf of such
6municipality, and not including any amount that the Department
7determines is necessary to offset any amounts that were
8payable to a different taxing body but were erroneously paid
9to the municipality, and not including any amounts that are
10transferred to the STAR Bonds Revenue Fund, less 1.5% of the
11remainder, which the Department shall transfer into the Tax
12Compliance and Administration Fund. The Department, at the
13time of each monthly disbursement to the municipalities, shall
14prepare and certify to the State Comptroller the amount to be
15transferred into the Tax Compliance and Administration Fund
16under this Section. Within 10 days after receipt by the
17Comptroller of the disbursement certification to the
18municipalities and the Tax Compliance and Administration Fund
19provided for in this Section to be given to the Comptroller by
20the Department, the Comptroller shall cause the orders to be
21drawn for the respective amounts in accordance with the
22directions contained in the certification.
23    In addition to the disbursement required by the preceding
24paragraph and in order to mitigate delays caused by
25distribution procedures, an allocation shall, if requested, be
26made within 10 days after January 14, 1991, and in November of

 

 

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11991 and each year thereafter, to each municipality that
2received more than $500,000 during the preceding fiscal year,
3(July 1 through June 30) whether collected by the municipality
4or disbursed by the Department as required by this Section.
5Within 10 days after January 14, 1991, participating
6municipalities shall notify the Department in writing of their
7intent to participate. In addition, for the initial
8distribution, participating municipalities shall certify to
9the Department the amounts collected by the municipality for
10each month under its home rule occupation and service
11occupation tax during the period July 1, 1989 through June 30,
121990. The allocation within 10 days after January 14, 1991,
13shall be in an amount equal to the monthly average of these
14amounts, excluding the 2 months of highest receipts. The
15monthly average for the period of July 1, 1990 through June 30,
161991 will be determined as follows: the amounts collected by
17the municipality under its home rule occupation and service
18occupation tax during the period of July 1, 1990 through
19September 30, 1990, plus amounts collected by the Department
20and paid to such municipality through June 30, 1991, excluding
21the 2 months of highest receipts. The monthly average for each
22subsequent period of July 1 through June 30 shall be an amount
23equal to the monthly distribution made to each such
24municipality under the preceding paragraph during this period,
25excluding the 2 months of highest receipts. The distribution
26made in November 1991 and each year thereafter under this

 

 

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1paragraph and the preceding paragraph shall be reduced by the
2amount allocated and disbursed under this paragraph in the
3preceding period of July 1 through June 30. The Department
4shall prepare and certify to the Comptroller for disbursement
5the allocations made in accordance with this paragraph.
6    For the purpose of determining the local governmental unit
7whose tax is applicable, a retail sale by a producer of coal or
8other mineral mined in Illinois is a sale at retail at the
9place where the coal or other mineral mined in Illinois is
10extracted from the earth. This paragraph does not apply to
11coal or other mineral when it is delivered or shipped by the
12seller to the purchaser at a point outside Illinois so that the
13sale is exempt under the United States Constitution as a sale
14in interstate or foreign commerce.
15    Nothing in this Section shall be construed to authorize a
16municipality to impose a tax upon the privilege of engaging in
17any business which under the Constitution of the United States
18may not be made the subject of taxation by this State.
19    An ordinance or resolution imposing or discontinuing a tax
20hereunder or effecting a change in the rate thereof shall be
21adopted and a certified copy thereof filed with the Department
22on or before the first day of June, whereupon the Department
23shall proceed to administer and enforce this Section as of the
24first day of September next following the adoption and filing.
25Beginning January 1, 1992, an ordinance or resolution imposing
26or discontinuing the tax hereunder or effecting a change in

 

 

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1the rate thereof shall be adopted and a certified copy thereof
2filed with the Department on or before the first day of July,
3whereupon the Department shall proceed to administer and
4enforce this Section as of the first day of October next
5following such adoption and filing. Beginning January 1, 1993,
6an ordinance or resolution imposing or discontinuing the tax
7hereunder or effecting a change in the rate thereof shall be
8adopted and a certified copy thereof filed with the Department
9on or before the first day of October, whereupon the
10Department shall proceed to administer and enforce this
11Section as of the first day of January next following the
12adoption and filing. However, a municipality located in a
13county with a population in excess of 3,000,000 that elected
14to become a home rule unit at the general primary election in
151994 may adopt an ordinance or resolution imposing the tax
16under this Section and file a certified copy of the ordinance
17or resolution with the Department on or before July 1, 1994.
18The Department shall then proceed to administer and enforce
19this Section as of October 1, 1994. Beginning April 1, 1998, an
20ordinance or resolution imposing or discontinuing the tax
21hereunder or effecting a change in the rate thereof shall
22either (i) be adopted and a certified copy thereof filed with
23the Department on or before the first day of April, whereupon
24the Department shall proceed to administer and enforce this
25Section as of the first day of July next following the adoption
26and filing; or (ii) be adopted and a certified copy thereof

 

 

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1filed with the Department on or before the first day of
2October, whereupon the Department shall proceed to administer
3and enforce this Section as of the first day of January next
4following the adoption and filing.
5    When certifying the amount of a monthly disbursement to a
6municipality under this Section, the Department shall increase
7or decrease the amount by an amount necessary to offset any
8misallocation of previous disbursements. The offset amount
9shall be the amount erroneously disbursed within the previous
106 months from the time a misallocation is discovered.
11    Any unobligated balance remaining in the Municipal
12Retailers' Occupation Tax Fund on December 31, 1989, which
13fund was abolished by Public Act 85-1135, and all receipts of
14municipal tax as a result of audits of liability periods prior
15to January 1, 1990, shall be paid into the Local Government Tax
16Fund for distribution as provided by this Section prior to the
17enactment of Public Act 85-1135. All receipts of municipal tax
18as a result of an assessment not arising from an audit, for
19liability periods prior to January 1, 1990, shall be paid into
20the Local Government Tax Fund for distribution before July 1,
211990, as provided by this Section prior to the enactment of
22Public Act 85-1135; and on and after July 1, 1990, all such
23receipts shall be distributed as provided in Section 6z-18 of
24the State Finance Act.
25    As used in this Section, "municipal" and "municipality"
26means a city, village or incorporated town, including an

 

 

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1incorporated town that has superseded a civil township.
2    This Section shall be known and may be cited as the Home
3Rule Municipal Retailers' Occupation Tax Act.
4(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
5101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
6    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
7    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
8Occupation Tax Act. The corporate authorities of a non-home
9rule municipality may impose a tax upon all persons engaged in
10the business of selling tangible personal property, other than
11on an item of tangible personal property which is titled and
12registered by an agency of this State's Government, at retail
13in the municipality for expenditure on public infrastructure
14or for property tax relief or both as defined in Section
158-11-1.2 if approved by referendum as provided in Section
168-11-1.1, of the gross receipts from such sales made in the
17course of such business. If the tax is approved by referendum
18on or after July 14, 2010 (the effective date of Public Act
1996-1057), the corporate authorities of a non-home rule
20municipality may, until July 1, 2030, use the proceeds of the
21tax for expenditure on municipal operations, in addition to or
22in lieu of any expenditure on public infrastructure or for
23property tax relief. The tax imposed may not be more than 1%
24and may be imposed only in 1/4% increments. The tax may not be
25imposed on tangible personal property taxed at the 1% rate

 

 

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1under the Retailers' Occupation Tax Act (or at the 0% rate
2imposed under this amendatory Act of the 102nd General
3Assembly). Beginning December 1, 2019, this tax is not imposed
4on sales of aviation fuel unless the tax revenue is expended
5for airport-related purposes. If a municipality does not have
6an airport-related purpose to which it dedicates aviation fuel
7tax revenue, then aviation fuel is excluded from the tax. Each
8municipality must comply with the certification requirements
9for airport-related purposes under Section 2-22 of the
10Retailers' Occupation Tax Act. For purposes of this Section,
11"airport-related purposes" has the meaning ascribed in Section
126z-20.2 of the State Finance Act. This exclusion for aviation
13fuel only applies for so long as the revenue use requirements
14of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
15municipality. The tax imposed by a municipality pursuant to
16this Section and all civil penalties that may be assessed as an
17incident thereof shall be collected and enforced by the State
18Department of Revenue. The certificate of registration which
19is issued by the Department to a retailer under the Retailers'
20Occupation Tax Act shall permit such retailer to engage in a
21business which is taxable under any ordinance or resolution
22enacted pursuant to this Section without registering
23separately with the Department under such ordinance or
24resolution or under this Section. The Department shall have
25full power to administer and enforce this Section; to collect
26all taxes and penalties due hereunder; to dispose of taxes and

 

 

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1penalties so collected in the manner hereinafter provided, and
2to determine all rights to credit memoranda, arising on
3account of the erroneous payment of tax or penalty hereunder.
4In the administration of, and compliance with, this Section,
5the Department and persons who are subject to this Section
6shall have the same rights, remedies, privileges, immunities,
7powers and duties, and be subject to the same conditions,
8restrictions, limitations, penalties and definitions of terms,
9and employ the same modes of procedure, as are prescribed in
10Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in
11respect to all provisions therein other than the State rate of
12tax), 2c, 3 (except as to the disposition of taxes and
13penalties collected, and except that the retailer's discount
14is not allowed for taxes paid on aviation fuel that are subject
15to the revenue use requirements of 49 U.S.C. 47107(b) and 49
16U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
175k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
18Retailers' Occupation Tax Act and Section 3-7 of the Uniform
19Penalty and Interest Act as fully as if those provisions were
20set forth herein.
21    No municipality may impose a tax under this Section unless
22the municipality also imposes a tax at the same rate under
23Section 8-11-1.4 of this Code.
24    If, on January 1, 2025, a unit of local government has in
25effect a tax under this Section, or if, after January 1, 2025,
26a unit of local government imposes a tax under this Section,

 

 

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1then that tax applies to leases of tangible personal property
2in effect, entered into, or renewed on or after that date in
3the same manner as the tax under this Section and in accordance
4with the changes made by this amendatory Act of the 103rd
5General Assembly.
6    Persons subject to any tax imposed pursuant to the
7authority granted in this Section may reimburse themselves for
8their seller's tax liability hereunder by separately stating
9such tax as an additional charge, which charge may be stated in
10combination, in a single amount, with State tax which sellers
11are required to collect under the Use Tax Act, pursuant to such
12bracket schedules as the Department may prescribe.
13    Whenever the Department determines that a refund should be
14made under this Section to a claimant instead of issuing a
15credit memorandum, the Department shall notify the State
16Comptroller, who shall cause the order to be drawn for the
17amount specified, and to the person named, in such
18notification from the Department. Such refund shall be paid by
19the State Treasurer out of the non-home rule municipal
20retailers' occupation tax fund or the Local Government
21Aviation Trust Fund, as appropriate.
22    Except as otherwise provided, the Department shall
23forthwith pay over to the State Treasurer, ex officio, as
24trustee, all taxes and penalties collected hereunder for
25deposit into the Non-Home Rule Municipal Retailers' Occupation
26Tax Fund. Taxes and penalties collected on aviation fuel sold

 

 

10300HB4951sam002- 709 -LRB103 38094 HLH 74177 a

1on or after December 1, 2019, shall be immediately paid over by
2the Department to the State Treasurer, ex officio, as trustee,
3for deposit into the Local Government Aviation Trust Fund. The
4Department shall only pay moneys into the Local Government
5Aviation Trust Fund under this Section for so long as the
6revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
747133 are binding on the municipality.
8    As soon as possible after the first day of each month,
9beginning January 1, 2011, upon certification of the
10Department of Revenue, the Comptroller shall order
11transferred, and the Treasurer shall transfer, to the STAR
12Bonds Revenue Fund the local sales tax increment, as defined
13in the Innovation Development and Economy Act, collected under
14this Section during the second preceding calendar month for
15sales within a STAR bond district.
16    After the monthly transfer to the STAR Bonds Revenue Fund,
17on or before the 25th day of each calendar month, the
18Department shall prepare and certify to the Comptroller the
19disbursement of stated sums of money to named municipalities,
20the municipalities to be those from which retailers have paid
21taxes or penalties hereunder to the Department during the
22second preceding calendar month. The amount to be paid to each
23municipality shall be the amount (not including credit
24memoranda and not including taxes and penalties collected on
25aviation fuel sold on or after December 1, 2019) collected
26hereunder during the second preceding calendar month by the

 

 

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

 

 

10300HB4951sam002- 711 -LRB103 38094 HLH 74177 a

1extracted from the earth. This paragraph does not apply to
2coal or other mineral when it is delivered or shipped by the
3seller to the purchaser at a point outside Illinois so that the
4sale is exempt under the Federal Constitution as a sale in
5interstate or foreign commerce.
6    Nothing in this Section shall be construed to authorize a
7municipality to impose a tax upon the privilege of engaging in
8any business which under the constitution of the United States
9may not be made the subject of taxation by this State.
10    When certifying the amount of a monthly disbursement to a
11municipality under this Section, the Department shall increase
12or decrease such amount by an amount necessary to offset any
13misallocation of previous disbursements. The offset amount
14shall be the amount erroneously disbursed within the previous
156 months from the time a misallocation is discovered.
16    The Department of Revenue shall implement Public Act
1791-649 so as to collect the tax on and after January 1, 2002.
18    As used in this Section, "municipal" and "municipality"
19mean a city, village, or incorporated town, including an
20incorporated town which has superseded a civil township.
21    This Section shall be known and may be cited as the
22Non-Home Rule Municipal Retailers' Occupation Tax Act.
23(Source: P.A. 101-10, eff. 6-5-19; 101-47, eff. 1-1-20;
24101-81, eff. 7-12-19; 101-604, eff. 12-13-19; 102-700, eff.
254-19-22.)
 

 

 

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1    (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)
2    Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
3Tax Act. The corporate authorities of a non-home rule
4municipality may impose a tax upon all persons engaged, in
5such municipality, in the business of making sales of service
6for expenditure on public infrastructure or for property tax
7relief or both as defined in Section 8-11-1.2 if approved by
8referendum as provided in Section 8-11-1.1, of the selling
9price of all tangible personal property transferred by such
10servicemen either in the form of tangible personal property or
11in the form of real estate as an incident to a sale of service.
12If the tax is approved by referendum on or after July 14, 2010
13(the effective date of Public Act 96-1057), the corporate
14authorities of a non-home rule municipality may, until
15December 31, 2030, use the proceeds of the tax for expenditure
16on municipal operations, in addition to or in lieu of any
17expenditure on public infrastructure or for property tax
18relief. The tax imposed may not be more than 1% and may be
19imposed only in 1/4% increments. The tax may not be imposed on
20tangible personal property taxed at the 1% rate under the
21Service Occupation Tax Act (or at the 0% rate imposed under
22this amendatory Act of the 102nd General Assembly). Beginning
23December 1, 2019, this tax is not imposed on sales of aviation
24fuel unless the tax revenue is expended for airport-related
25purposes. If a municipality does not have an airport-related
26purpose to which it dedicates aviation fuel tax revenue, then

 

 

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

 

 

10300HB4951sam002- 714 -LRB103 38094 HLH 74177 a

1immunities, powers and duties, and be subject to the same
2conditions, restrictions, limitations, penalties and
3definitions of terms, and employ the same modes of procedure,
4as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
5respect to all provisions therein other than the State rate of
6tax), 4 (except that the reference to the State shall be to the
7taxing municipality), 5, 7, 8 (except that the jurisdiction to
8which the tax shall be a debt to the extent indicated in that
9Section 8 shall be the taxing municipality), 9 (except as to
10the disposition of taxes and penalties collected, and except
11that the returned merchandise credit for this municipal tax
12may not be taken against any State tax, and except that the
13retailer's discount is not allowed for taxes paid on aviation
14fuel that are subject to the revenue use requirements of 49
15U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except the
16reference therein to Section 2b of the Retailers' Occupation
17Tax Act), 13 (except that any reference to the State shall mean
18the taxing municipality), the first paragraph of Section 15,
1916, 17, 18, 19 and 20 of the Service Occupation Tax Act and
20Section 3-7 of the Uniform Penalty and Interest Act, as fully
21as if those provisions were set forth herein.
22    No municipality may impose a tax under this Section unless
23the municipality also imposes a tax at the same rate under
24Section 8-11-1.3 of this Code.
25    If, on January 1, 2025, a unit of local government has in
26effect a tax under this Section, or if, after January 1, 2025,

 

 

10300HB4951sam002- 715 -LRB103 38094 HLH 74177 a

1a unit of local government imposes a tax under this Section,
2then that tax applies to leases of tangible personal property
3in effect, entered into, or renewed on or after that date in
4the same manner as the tax under this Section and in accordance
5with the changes made by this amendatory Act of the 103rd
6General Assembly.
7    Persons subject to any tax imposed pursuant to the
8authority granted in this Section may reimburse themselves for
9their serviceman's tax liability hereunder by separately
10stating such tax as an additional charge, which charge may be
11stated in combination, in a single amount, with State tax
12which servicemen are authorized to collect under the Service
13Use Tax Act, pursuant to such bracket schedules as the
14Department may prescribe.
15    Whenever the Department determines that a refund should be
16made under this Section to a claimant instead of issuing
17credit memorandum, the Department shall notify the State
18Comptroller, who shall cause the order to be drawn for the
19amount specified, and to the person named, in such
20notification from the Department. Such refund shall be paid by
21the State Treasurer out of the municipal retailers' occupation
22tax fund or the Local Government Aviation Trust Fund, as
23appropriate.
24    Except as otherwise provided in this paragraph, the
25Department shall forthwith pay over to the State Treasurer, ex
26officio, as trustee, all taxes and penalties collected

 

 

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

 

 

10300HB4951sam002- 717 -LRB103 38094 HLH 74177 a

1penalties collected on aviation fuel sold on or after December
21, 2019) collected hereunder during the second preceding
3calendar month by the Department, and not including an amount
4equal to the amount of refunds made during the second
5preceding calendar month by the Department on behalf of such
6municipality, and not including any amounts that are
7transferred to the STAR Bonds Revenue Fund, less 1.5% of the
8remainder, which the Department shall transfer into the Tax
9Compliance and Administration Fund. The Department, at the
10time of each monthly disbursement to the municipalities, shall
11prepare and certify to the State Comptroller the amount to be
12transferred into the Tax Compliance and Administration Fund
13under this Section. Within 10 days after receipt, by the
14Comptroller, of the disbursement certification to the
15municipalities, the General Revenue Fund, and the Tax
16Compliance and Administration Fund provided for in this
17Section to be given to the Comptroller by the Department, the
18Comptroller shall cause the orders to be drawn for the
19respective amounts in accordance with the directions contained
20in such certification.
21    The Department of Revenue shall implement Public Act
2291-649 so as to collect the tax on and after January 1, 2002.
23    Nothing in this Section shall be construed to authorize a
24municipality to impose a tax upon the privilege of engaging in
25any business which under the constitution of the United States
26may not be made the subject of taxation by this State.

 

 

10300HB4951sam002- 718 -LRB103 38094 HLH 74177 a

1    As used in this Section, "municipal" or "municipality"
2means or refers to a city, village or incorporated town,
3including an incorporated town which has superseded a civil
4township.
5    This Section shall be known and may be cited as the
6"Non-Home Rule Municipal Service Occupation Tax Act".
7(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
 
8    (65 ILCS 5/8-11-1.6)
9    Sec. 8-11-1.6. Non-home rule municipal retailers'
10occupation tax; municipalities between 20,000 and 25,000. The
11corporate authorities of a non-home rule municipality with a
12population of more than 20,000 but less than 25,000 that has,
13prior to January 1, 1987, established a Redevelopment Project
14Area that has been certified as a State Sales Tax Boundary and
15has issued bonds or otherwise incurred indebtedness to pay for
16costs in excess of $5,000,000, which is secured in part by a
17tax increment allocation fund, in accordance with the
18provisions of Division 11-74.4 of this Code may, by passage of
19an ordinance, impose a tax upon all persons engaged in the
20business of selling tangible personal property, other than on
21an item of tangible personal property that is titled and
22registered by an agency of this State's Government, at retail
23in the municipality. This tax may not be imposed on tangible
24personal property taxed at the 1% rate under the Retailers'
25Occupation Tax Act (or at the 0% rate imposed under this

 

 

10300HB4951sam002- 719 -LRB103 38094 HLH 74177 a

1amendatory Act of the 102nd General Assembly). Beginning
2December 1, 2019, this tax is not imposed on sales of aviation
3fuel unless the tax revenue is expended for airport-related
4purposes. If a municipality does not have an airport-related
5purpose to which it dedicates aviation fuel tax revenue, then
6aviation fuel is excluded from the tax. Each municipality must
7comply with the certification requirements for airport-related
8purposes under Section 2-22 of the Retailers' Occupation Tax
9Act. For purposes of this Section, "airport-related purposes"
10has the meaning ascribed in Section 6z-20.2 of the State
11Finance Act. This exclusion for aviation fuel only applies for
12so long as the revenue use requirements of 49 U.S.C. 47107(b)
13and 49 U.S.C. 47133 are binding on the municipality. If
14imposed, the tax shall only be imposed in .25% increments of
15the gross receipts from such sales made in the course of
16business. Any tax imposed by a municipality under this Section
17and all civil penalties that may be assessed as an incident
18thereof shall be collected and enforced by the State
19Department of Revenue. An ordinance imposing a tax hereunder
20or effecting a change in the rate thereof shall be adopted and
21a certified copy thereof filed with the Department on or
22before the first day of October, whereupon the Department
23shall proceed to administer and enforce this Section as of the
24first day of January next following such adoption and filing.
25The certificate of registration that is issued by the
26Department to a retailer under the Retailers' Occupation Tax

 

 

10300HB4951sam002- 720 -LRB103 38094 HLH 74177 a

1Act shall permit the retailer to engage in a business that is
2taxable under any ordinance or resolution enacted under this
3Section without registering separately with the Department
4under the ordinance or resolution or under this Section. The
5Department shall have full power to administer and enforce
6this Section, to collect all taxes and penalties due
7hereunder, to dispose of taxes and penalties so collected in
8the manner hereinafter provided, and to determine all rights
9to credit memoranda, arising on account of the erroneous
10payment of tax or penalty hereunder. In the administration of,
11and compliance with this Section, the Department and persons
12who are subject to this Section shall have the same rights,
13remedies, privileges, immunities, powers, and duties, and be
14subject to the same conditions, restrictions, limitations,
15penalties, and definitions of terms, and employ the same modes
16of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
171e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
18therein other than the State rate of tax), 2c, 3 (except as to
19the disposition of taxes and penalties collected, and except
20that the retailer's discount is not allowed for taxes paid on
21aviation fuel that are subject to the revenue use requirements
22of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
235d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
2410, 11, 12 and 13 of the Retailers' Occupation Tax Act and
25Section 3-7 of the Uniform Penalty and Interest Act as fully as
26if those provisions were set forth herein.

 

 

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1    A tax may not be imposed by a municipality under this
2Section unless the municipality also imposes a tax at the same
3rate under Section 8-11-1.7 of this Act.
4    If, on January 1, 2025, a unit of local government has in
5effect a tax under this Section, or if, after January 1, 2025,
6a unit of local government imposes a tax under this Section,
7then that tax applies to leases of tangible personal property
8in effect, entered into, or renewed on or after that date in
9the same manner as the tax under this Section and in accordance
10with the changes made by this amendatory Act of the 103rd
11General Assembly.
12    Persons subject to any tax imposed under the authority
13granted in this Section may reimburse themselves for their
14seller's tax liability hereunder by separately stating the tax
15as an additional charge, which charge may be stated in
16combination, in a single amount, with State tax which sellers
17are required to collect under the Use Tax Act, pursuant to such
18bracket schedules as the Department may prescribe.
19    Whenever the Department determines that a refund should be
20made under this Section to a claimant, instead of issuing a
21credit memorandum, the Department shall notify the State
22Comptroller, who shall cause the order to be drawn for the
23amount specified, and to the person named in the notification
24from the Department. The refund shall be paid by the State
25Treasurer out of the Non-Home Rule Municipal Retailers'
26Occupation Tax Fund, which is hereby created or the Local

 

 

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

 

 

10300HB4951sam002- 723 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 724 -LRB103 38094 HLH 74177 a

1the Department, the Comptroller shall cause the orders to be
2drawn for the respective amounts in accordance with the
3directions contained in the certification.
4    For the purpose of determining the local governmental unit
5whose tax is applicable, a retail sale by a producer of coal or
6other mineral mined in Illinois is a sale at retail at the
7place where the coal or other mineral mined in Illinois is
8extracted from the earth. This paragraph does not apply to
9coal or other mineral when it is delivered or shipped by the
10seller to the purchaser at a point outside Illinois so that the
11sale is exempt under the federal Constitution as a sale in
12interstate or foreign commerce.
13    Nothing in this Section shall be construed to authorize a
14municipality to impose a tax upon the privilege of engaging in
15any business which under the constitution of the United States
16may not be made the subject of taxation by this State.
17    When certifying the amount of a monthly disbursement to a
18municipality under this Section, the Department shall increase
19or decrease the amount by an amount necessary to offset any
20misallocation of previous disbursements. The offset amount
21shall be the amount erroneously disbursed within the previous
226 months from the time a misallocation is discovered.
23    As used in this Section, "municipal" and "municipality"
24means a city, village, or incorporated town, including an
25incorporated town that has superseded a civil township.
26(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;

 

 

10300HB4951sam002- 725 -LRB103 38094 HLH 74177 a

1101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
2    (65 ILCS 5/8-11-1.7)
3    Sec. 8-11-1.7. Non-home rule municipal service occupation
4tax; municipalities between 20,000 and 25,000. The corporate
5authorities of a non-home rule municipality with a population
6of more than 20,000 but less than 25,000 as determined by the
7last preceding decennial census that has, prior to January 1,
81987, established a Redevelopment Project Area that has been
9certified as a State Sales Tax Boundary and has issued bonds or
10otherwise incurred indebtedness to pay for costs in excess of
11$5,000,000, which is secured in part by a tax increment
12allocation fund, in accordance with the provisions of Division
1311-74.4 of this Code may, by passage of an ordinance, impose a
14tax upon all persons engaged in the municipality in the
15business of making sales of service. If imposed, the tax shall
16only be imposed in .25% increments of the selling price of all
17tangible personal property transferred by such servicemen
18either in the form of tangible personal property or in the form
19of real estate as an incident to a sale of service. This tax
20may not be imposed on tangible personal property taxed at the
211% rate under the Service Occupation Tax Act (or at the 0% rate
22imposed under this amendatory Act of the 102nd General
23Assembly). Beginning December 1, 2019, this tax is not imposed
24on sales of aviation fuel unless the tax revenue is expended
25for airport-related purposes. If a municipality does not have

 

 

10300HB4951sam002- 726 -LRB103 38094 HLH 74177 a

1an airport-related purpose to which it dedicates aviation fuel
2tax revenue, then aviation fuel is excluded from the tax. Each
3municipality must comply with the certification requirements
4for airport-related purposes under Section 2-22 of the
5Retailers' Occupation Tax Act. For purposes of this Section,
6"airport-related purposes" has the meaning ascribed in Section
76z-20.2 of the State Finance Act. This exclusion for aviation
8fuel only applies for so long as the revenue use requirements
9of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
10municipality. The tax imposed by a municipality under this
11Section and all civil penalties that may be assessed as an
12incident thereof shall be collected and enforced by the State
13Department of Revenue. An ordinance imposing a tax hereunder
14or effecting a change in the rate thereof shall be adopted and
15a certified copy thereof filed with the Department on or
16before the first day of October, whereupon the Department
17shall proceed to administer and enforce this Section as of the
18first day of January next following such adoption and filing.
19The certificate of registration that is issued by the
20Department to a retailer under the Retailers' Occupation Tax
21Act or under the Service Occupation Tax Act shall permit the
22registrant to engage in a business that is taxable under any
23ordinance or resolution enacted under this Section without
24registering separately with the Department under the ordinance
25or resolution or under this Section. The Department shall have
26full power to administer and enforce this Section, to collect

 

 

10300HB4951sam002- 727 -LRB103 38094 HLH 74177 a

1all taxes and penalties due hereunder, to dispose of taxes and
2penalties so collected in a manner hereinafter provided, and
3to determine all rights to credit memoranda arising on account
4of the erroneous payment of tax or penalty hereunder. In the
5administration of and compliance with this Section, the
6Department and persons who are subject to this Section shall
7have the same rights, remedies, privileges, immunities,
8powers, and duties, and be subject to the same conditions,
9restrictions, limitations, penalties and definitions of terms,
10and employ the same modes of procedure, as are prescribed in
11Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
12provisions therein other than the State rate of tax), 4
13(except that the reference to the State shall be to the taxing
14municipality), 5, 7, 8 (except that the jurisdiction to which
15the tax shall be a debt to the extent indicated in that Section
168 shall be the taxing municipality), 9 (except as to the
17disposition of taxes and penalties collected, and except that
18the returned merchandise credit for this municipal tax may not
19be taken against any State tax, and except that the retailer's
20discount is not allowed for taxes paid on aviation fuel that
21are subject to the revenue use requirements of 49 U.S.C.
2247107(b) and 49 U.S.C. 47133), 10, 11, 12, (except the
23reference therein to Section 2b of the Retailers' Occupation
24Tax Act), 13 (except that any reference to the State shall mean
25the taxing municipality), the first paragraph of Sections 15,
2616, 17, 18, 19, and 20 of the Service Occupation Tax Act and

 

 

10300HB4951sam002- 728 -LRB103 38094 HLH 74177 a

1Section 3-7 of the Uniform Penalty and Interest Act, as fully
2as if those provisions were set forth herein.
3    A tax may not be imposed by a municipality under this
4Section unless the municipality also imposes a tax at the same
5rate under Section 8-11-1.6 of this Act.
6    If, on January 1, 2025, a unit of local government has in
7effect a tax under this Section, or if, after January 1, 2025,
8a unit of local government imposes a tax under this Section,
9then that tax applies to leases of tangible personal property
10in effect, entered into, or renewed on or after that date in
11the same manner as the tax under this Section and in accordance
12with the changes made by this amendatory Act of the 103rd
13General Assembly.
14    Person subject to any tax imposed under the authority
15granted in this Section may reimburse themselves for their
16servicemen's tax liability hereunder by separately stating the
17tax as an additional charge, which charge may be stated in
18combination, in a single amount, with State tax that
19servicemen are authorized to collect under the Service Use Tax
20Act, under such bracket schedules as the Department may
21prescribe.
22    Whenever the Department determines that a refund should be
23made under this Section to a claimant instead of issuing
24credit memorandum, the Department shall notify the State
25Comptroller, who shall cause the order to be drawn for the
26amount specified, and to the person named, in such

 

 

10300HB4951sam002- 729 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 730 -LRB103 38094 HLH 74177 a

1on or before the 25th day of each calendar month, the
2Department shall prepare and certify to the Comptroller the
3disbursement of stated sums of money to named municipalities,
4the municipalities to be those from which suppliers and
5servicemen have paid taxes or penalties hereunder to the
6Department during the second preceding calendar month. The
7amount to be paid to each municipality shall be the amount (not
8including credit memoranda and not including taxes and
9penalties collected on aviation fuel sold on or after December
101, 2019) collected hereunder during the second preceding
11calendar month by the Department, and not including an amount
12equal to the amount of refunds made during the second
13preceding calendar month by the Department on behalf of such
14municipality, and not including any amounts that are
15transferred to the STAR Bonds Revenue Fund, less 1.5% of the
16remainder, which the Department shall transfer into the Tax
17Compliance and Administration Fund. The Department, at the
18time of each monthly disbursement to the municipalities, shall
19prepare and certify to the State Comptroller the amount to be
20transferred into the Tax Compliance and Administration Fund
21under this Section. Within 10 days after receipt by the
22Comptroller of the disbursement certification to the
23municipalities, the Tax Compliance and Administration Fund,
24and the General Revenue Fund, provided for in this Section to
25be given to the Comptroller by the Department, the Comptroller
26shall cause the orders to be drawn for the respective amounts

 

 

10300HB4951sam002- 731 -LRB103 38094 HLH 74177 a

1in accordance with the directions contained in the
2certification.
3    When certifying the amount of a monthly disbursement to a
4municipality under this Section, the Department shall increase
5or decrease the amount by an amount necessary to offset any
6misallocation of previous disbursements. The offset amount
7shall be the amount erroneously disbursed within the previous
86 months from the time a misallocation is discovered.
9    Nothing in this Section shall be construed to authorize a
10municipality to impose a tax upon the privilege of engaging in
11any business which under the constitution of the United States
12may not be made the subject of taxation by this State.
13(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
14101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
15    (65 ILCS 5/11-74.3-6)
16    Sec. 11-74.3-6. Business district revenue and obligations;
17business district tax allocation fund.
18    (a) If the corporate authorities of a municipality have
19approved a business district plan, have designated a business
20district, and have elected to impose a tax by ordinance
21pursuant to subsection (10) or (11) of Section 11-74.3-3, then
22each year after the date of the approval of the ordinance but
23terminating upon the date all business district project costs
24and all obligations paying or reimbursing business district
25project costs, if any, have been paid, but in no event later

 

 

10300HB4951sam002- 732 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 733 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 734 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 735 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 736 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 737 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 738 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 739 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 740 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 741 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 742 -LRB103 38094 HLH 74177 a

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

 

 

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1    Whenever the Department determines that a refund should be
2made under this subsection to a claimant instead of issuing
3credit memorandum, the Department shall notify the State
4Comptroller, who shall cause the order to be drawn for the
5amount specified, and to the person named, in such
6notification from the Department. Such refund shall be paid by
7the State Treasurer out of the business district retailers'
8occupation tax fund or the Local Government Aviation Trust
9Fund, as appropriate.
10    Except as otherwise provided in this paragraph, the
11Department shall forthwith pay over to the State Treasurer,
12ex-officio, as trustee, all taxes, penalties, and interest
13collected under this subsection for deposit into the business
14district retailers' occupation tax fund. Taxes and penalties
15collected on aviation fuel sold on or after December 1, 2019,
16shall be immediately paid over by the Department to the State
17Treasurer, ex officio, as trustee, for deposit into the Local
18Government Aviation Trust Fund. The Department shall only pay
19moneys into the Local Government Aviation Trust Fund under
20this Section for so long as the revenue use requirements of 49
21U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
22District.
23    As soon as possible after the first day of each month,
24beginning January 1, 2011, upon certification of the
25Department of Revenue, the Comptroller shall order
26transferred, and the Treasurer shall transfer, to the STAR

 

 

10300HB4951sam002- 744 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 745 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 746 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 747 -LRB103 38094 HLH 74177 a

1if they reasonably relied on information provided by the
2municipality.
3    A municipality that imposes the tax under this subsection
4must submit to the Department of Revenue any other information
5as the Department may require for the administration and
6enforcement of the tax.
7    Nothing in this subsection shall be construed to authorize
8the municipality to impose a tax upon the privilege of
9engaging in any business which under the Constitution of the
10United States may not be made the subject of taxation by the
11State.
12    If a tax is imposed under this subsection (c), a tax shall
13also be imposed under subsection (b) of this Section.
14    (c-5) If, on January 1, 2025, a unit of local government
15has in effect a tax under this Section, or if, after January 1,
162025, a unit of local government imposes a tax under this
17Section, then that tax applies to leases of tangible personal
18property in effect, entered into, or renewed on or after that
19date in the same manner as the tax under this Section and in
20accordance with the changes made by this amendatory Act of the
21103rd General Assembly.
22    (d) By ordinance, a municipality that has designated a
23business district under this Law may impose an occupation tax
24upon all persons engaged in the business district in the
25business of renting, leasing, or letting rooms in a hotel, as
26defined in the Hotel Operators' Occupation Tax Act, at a rate

 

 

10300HB4951sam002- 748 -LRB103 38094 HLH 74177 a

1not to exceed 1% of the gross rental receipts from the renting,
2leasing, or letting of hotel rooms within the business
3district, to be imposed only in 0.25% increments, excluding,
4however, from gross rental receipts the proceeds of renting,
5leasing, or letting to permanent residents of a hotel, as
6defined in the Hotel Operators' Occupation Tax Act, and
7proceeds from the tax imposed under subsection (c) of Section
813 of the Metropolitan Pier and Exposition Authority Act.
9    The tax imposed by the municipality under this subsection
10and all civil penalties that may be assessed as an incident to
11that tax shall be collected and enforced by the municipality
12imposing the tax. The municipality shall have full power to
13administer and enforce this subsection, to collect all taxes
14and penalties due under this subsection, to dispose of taxes
15and penalties so collected in the manner provided in this
16subsection, and to determine all rights to credit memoranda
17arising on account of the erroneous payment of tax or penalty
18under this subsection. In the administration of and compliance
19with this subsection, the municipality and persons who are
20subject to this subsection shall have the same rights,
21remedies, privileges, immunities, powers, and duties, shall be
22subject to the same conditions, restrictions, limitations,
23penalties, and definitions of terms, and shall employ the same
24modes of procedure as are employed with respect to a tax
25adopted by the municipality under Section 8-3-14 of this Code.
26    Persons subject to any tax imposed under the authority

 

 

10300HB4951sam002- 749 -LRB103 38094 HLH 74177 a

1granted in this subsection may reimburse themselves for their
2tax liability for that tax by separately stating that tax as an
3additional charge, which charge may be stated in combination,
4in a single amount, with State taxes imposed under the Hotel
5Operators' Occupation Tax Act, and with any other tax.
6    Nothing in this subsection shall be construed to authorize
7a municipality to impose a tax upon the privilege of engaging
8in any business which under the Constitution of the United
9States may not be made the subject of taxation by this State.
10    The proceeds of the tax imposed under this subsection
11shall be deposited into the Business District Tax Allocation
12Fund.
13    (e) Obligations secured by the Business District Tax
14Allocation Fund may be issued to provide for the payment or
15reimbursement of business district project costs. Those
16obligations, when so issued, shall be retired in the manner
17provided in the ordinance authorizing the issuance of those
18obligations by the receipts of taxes imposed pursuant to
19subsections (10) and (11) of Section 11-74.3-3 and by other
20revenue designated or pledged by the municipality. A
21municipality may in the ordinance pledge, for any period of
22time up to and including the dissolution date, all or any part
23of the funds in and to be deposited in the Business District
24Tax Allocation Fund to the payment of business district
25project costs and obligations. Whenever a municipality pledges
26all of the funds to the credit of a business district tax

 

 

10300HB4951sam002- 750 -LRB103 38094 HLH 74177 a

1allocation fund to secure obligations issued or to be issued
2to pay or reimburse business district project costs, the
3municipality may specifically provide that funds remaining to
4the credit of such business district tax allocation fund after
5the payment of such obligations shall be accounted for
6annually and shall be deemed to be "surplus" funds, and such
7"surplus" funds shall be expended by the municipality for any
8business district project cost as approved in the business
9district plan. Whenever a municipality pledges less than all
10of the monies to the credit of a business district tax
11allocation fund to secure obligations issued or to be issued
12to pay or reimburse business district project costs, the
13municipality shall provide that monies to the credit of the
14business district tax allocation fund and not subject to such
15pledge or otherwise encumbered or required for payment of
16contractual obligations for specific business district project
17costs shall be calculated annually and shall be deemed to be
18"surplus" funds, and such "surplus" funds shall be expended by
19the municipality for any business district project cost as
20approved in the business district plan.
21    No obligation issued pursuant to this Law and secured by a
22pledge of all or any portion of any revenues received or to be
23received by the municipality from the imposition of taxes
24pursuant to subsection (10) of Section 11-74.3-3, shall be
25deemed to constitute an economic incentive agreement under
26Section 8-11-20, notwithstanding the fact that such pledge

 

 

10300HB4951sam002- 751 -LRB103 38094 HLH 74177 a

1provides for the sharing, rebate, or payment of retailers'
2occupation taxes or service occupation taxes imposed pursuant
3to subsection (10) of Section 11-74.3-3 and received or to be
4received by the municipality from the development or
5redevelopment of properties in the business district.
6    Without limiting the foregoing in this Section, the
7municipality may further secure obligations secured by the
8business district tax allocation fund with a pledge, for a
9period not greater than the term of the obligations and in any
10case not longer than the dissolution date, of any part or any
11combination of the following: (i) net revenues of all or part
12of any business district project; (ii) taxes levied or imposed
13by the municipality on any or all property in the
14municipality, including, specifically, taxes levied or imposed
15by the municipality in a special service area pursuant to the
16Special Service Area Tax Law; (iii) the full faith and credit
17of the municipality; (iv) a mortgage on part or all of the
18business district project; or (v) any other taxes or
19anticipated receipts that the municipality may lawfully
20pledge.
21    Such obligations may be issued in one or more series, bear
22such date or dates, become due at such time or times as therein
23provided, but in any case not later than (i) 20 years after the
24date of issue or (ii) the dissolution date, whichever is
25earlier, bear interest payable at such intervals and at such
26rate or rates as set forth therein, except as may be limited by

 

 

10300HB4951sam002- 752 -LRB103 38094 HLH 74177 a

1applicable law, which rate or rates may be fixed or variable,
2be in such denominations, be in such form, either coupon,
3registered, or book-entry, carry such conversion, registration
4and exchange privileges, be subject to defeasance upon such
5terms, have such rank or priority, be executed in such manner,
6be payable in such medium or payment at such place or places
7within or without the State, make provision for a corporate
8trustee within or without the State with respect to such
9obligations, prescribe the rights, powers, and duties thereof
10to be exercised for the benefit of the municipality and the
11benefit of the owners of such obligations, provide for the
12holding in trust, investment, and use of moneys, funds, and
13accounts held under an ordinance, provide for assignment of
14and direct payment of the moneys to pay such obligations or to
15be deposited into such funds or accounts directly to such
16trustee, be subject to such terms of redemption with or
17without premium, and be sold at such price, all as the
18corporate authorities shall determine. No referendum approval
19of the electors shall be required as a condition to the
20issuance of obligations pursuant to this Law except as
21provided in this Section.
22    In the event the municipality authorizes the issuance of
23obligations pursuant to the authority of this Law secured by
24the full faith and credit of the municipality, or pledges ad
25valorem taxes pursuant to this subsection, which obligations
26are other than obligations which may be issued under home rule

 

 

10300HB4951sam002- 753 -LRB103 38094 HLH 74177 a

1powers provided by Section 6 of Article VII of the Illinois
2Constitution or which ad valorem taxes are other than ad
3valorem taxes which may be pledged under home rule powers
4provided by Section 6 of Article VII of the Illinois
5Constitution or which are levied in a special service area
6pursuant to the Special Service Area Tax Law, the ordinance
7authorizing the issuance of those obligations or pledging
8those taxes shall be published within 10 days after the
9ordinance has been adopted, in a newspaper having a general
10circulation within the municipality. The publication of the
11ordinance shall be accompanied by a notice of (i) the specific
12number of voters required to sign a petition requesting the
13question of the issuance of the obligations or pledging such
14ad valorem taxes to be submitted to the electors; (ii) the time
15within which the petition must be filed; and (iii) the date of
16the prospective referendum. The municipal clerk shall provide
17a petition form to any individual requesting one.
18    If no petition is filed with the municipal clerk, as
19hereinafter provided in this Section, within 21 days after the
20publication of the ordinance, the ordinance shall be in
21effect. However, if within that 21-day period a petition is
22filed with the municipal clerk, signed by electors numbering
23not less than 15% of the number of electors voting for the
24mayor or president at the last general municipal election,
25asking that the question of issuing obligations using full
26faith and credit of the municipality as security for the cost

 

 

10300HB4951sam002- 754 -LRB103 38094 HLH 74177 a

1of paying or reimbursing business district project costs, or
2of pledging such ad valorem taxes for the payment of those
3obligations, or both, be submitted to the electors of the
4municipality, the municipality shall not be authorized to
5issue obligations of the municipality using the full faith and
6credit of the municipality as security or pledging such ad
7valorem taxes for the payment of those obligations, or both,
8until the proposition has been submitted to and approved by a
9majority of the voters voting on the proposition at a
10regularly scheduled election. The municipality shall certify
11the proposition to the proper election authorities for
12submission in accordance with the general election law.
13    The ordinance authorizing the obligations may provide that
14the obligations shall contain a recital that they are issued
15pursuant to this Law, which recital shall be conclusive
16evidence of their validity and of the regularity of their
17issuance.
18    In the event the municipality authorizes issuance of
19obligations pursuant to this Law secured by the full faith and
20credit of the municipality, the ordinance authorizing the
21obligations may provide for the levy and collection of a
22direct annual tax upon all taxable property within the
23municipality sufficient to pay the principal thereof and
24interest thereon as it matures, which levy may be in addition
25to and exclusive of the maximum of all other taxes authorized
26to be levied by the municipality, which levy, however, shall

 

 

10300HB4951sam002- 755 -LRB103 38094 HLH 74177 a

1be abated to the extent that monies from other sources are
2available for payment of the obligations and the municipality
3certifies the amount of those monies available to the county
4clerk.
5    A certified copy of the ordinance shall be filed with the
6county clerk of each county in which any portion of the
7municipality is situated, and shall constitute the authority
8for the extension and collection of the taxes to be deposited
9in the business district tax allocation fund.
10    A municipality may also issue its obligations to refund,
11in whole or in part, obligations theretofore issued by the
12municipality under the authority of this Law, whether at or
13prior to maturity. However, the last maturity of the refunding
14obligations shall not be expressed to mature later than the
15dissolution date.
16    In the event a municipality issues obligations under home
17rule powers or other legislative authority, the proceeds of
18which are pledged to pay or reimburse business district
19project costs, the municipality may, if it has followed the
20procedures in conformance with this Law, retire those
21obligations from funds in the business district tax allocation
22fund in amounts and in such manner as if those obligations had
23been issued pursuant to the provisions of this Law.
24    No obligations issued pursuant to this Law shall be
25regarded as indebtedness of the municipality issuing those
26obligations or any other taxing district for the purpose of

 

 

10300HB4951sam002- 756 -LRB103 38094 HLH 74177 a

1any limitation imposed by law.
2    Obligations issued pursuant to this Law shall not be
3subject to the provisions of the Bond Authorization Act.
4    (f) When business district project costs, including,
5without limitation, all obligations paying or reimbursing
6business district project costs have been paid, any surplus
7funds then remaining in the Business District Tax Allocation
8Fund shall be distributed to the municipal treasurer for
9deposit into the general corporate fund of the municipality.
10Upon payment of all business district project costs and
11retirement of all obligations paying or reimbursing business
12district project costs, but in no event more than 23 years
13after the date of adoption of the ordinance imposing taxes
14pursuant to subsection (10) or (11) of Section 11-74.3-3, the
15municipality shall adopt an ordinance immediately rescinding
16the taxes imposed pursuant to subsection (10) or (11) of
17Section 11-74.3-3.
18(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19;
19102-700, eff. 4-19-22.)
 
20    Section 75-40. The Civic Center Code is amended by
21changing Section 245-12 as follows:
 
22    (70 ILCS 200/245-12)
23    Sec. 245-12. Use and occupation taxes.
24    (a) The Authority may adopt a resolution that authorizes a

 

 

10300HB4951sam002- 757 -LRB103 38094 HLH 74177 a

1referendum on the question of whether the Authority shall be
2authorized to impose a retailers' occupation tax, a service
3occupation tax, and a use tax in one-quarter percent
4increments at a rate not to exceed 1%. The Authority shall
5certify the question to the proper election authorities who
6shall submit the question to the voters of the metropolitan
7area at the next regularly scheduled election in accordance
8with the general election law. The question shall be in
9substantially the following form:
10    "Shall the Salem Civic Center Authority be authorized to
11    impose a retailers' occupation tax, a service occupation
12    tax, and a use tax at the rate of (rate) for the sole
13    purpose of obtaining funds for the support, construction,
14    maintenance, or financing of a facility of the Authority?"
15    Votes shall be recorded as "yes" or "no".
16    If a majority of all votes cast on the proposition are in
17favor of the proposition, the Authority is authorized to
18impose the tax.
19    (b) The Authority shall impose the retailers' occupation
20tax upon all persons engaged in the business of selling
21tangible personal property at retail in the metropolitan area,
22at the rate approved by referendum, on the gross receipts from
23the sales made in the course of such business within the
24metropolitan area. Beginning December 1, 2019 and through
25December 31, 2020, this tax is not imposed on sales of aviation
26fuel unless the tax revenue is expended for airport-related

 

 

10300HB4951sam002- 758 -LRB103 38094 HLH 74177 a

1purposes. If the Authority does not have an airport-related
2purpose to which it dedicates aviation fuel tax revenue, then
3aviation fuel is excluded from the tax. The Authority must
4comply with the certification requirements for airport-related
5purposes under Section 2-22 of the Retailers' Occupation Tax
6Act. For purposes of this Section, "airport-related purposes"
7has the meaning ascribed in Section 6z-20.2 of the State
8Finance Act. Beginning January 1, 2021, this tax is not
9imposed on sales of aviation fuel for so long as the revenue
10use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
11binding on the Authority.
12    The tax imposed under this Section and all civil penalties
13that may be assessed as an incident thereof shall be collected
14and enforced by the Department of Revenue. The Department has
15full power to administer and enforce this Section; to collect
16all taxes and penalties so collected in the manner provided in
17this Section; and to determine all rights to credit memoranda
18arising on account of the erroneous payment of tax or penalty
19hereunder. In the administration of, and compliance with, this
20Section, the Department and persons who are subject to this
21Section shall (i) have the same rights, remedies, privileges,
22immunities, powers and duties, (ii) be subject to the same
23conditions, restrictions, limitations, penalties, exclusions,
24exemptions, and definitions of terms, and (iii) employ the
25same modes of procedure as are prescribed in Sections 1, 1a,
261a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10

 

 

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1(in respect to all provisions therein other than the State
2rate of tax), 2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except as
3to the disposition of taxes and penalties collected and
4provisions related to quarter monthly payments, and except
5that the retailer's discount is not allowed for taxes paid on
6aviation fuel that are subject to the revenue use requirements
7of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
85d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
911a, 12, and 13 of the Retailers' Occupation Tax Act and
10Section 3-7 of the Uniform Penalty and Interest Act, as fully
11as if those provisions were set forth in this subsection.
12    Persons subject to any tax imposed under this subsection
13may reimburse themselves for their seller's tax liability by
14separately stating the tax as an additional charge, which
15charge may be stated in combination, in a single amount, with
16State taxes that sellers are required to collect, in
17accordance with such bracket schedules as the Department may
18prescribe.
19    Whenever the Department determines that a refund should be
20made under this subsection to a claimant instead of issuing a
21credit memorandum, the Department shall notify the State
22Comptroller, who shall cause the warrant to be drawn for the
23amount specified, and to the person named, in the notification
24from the Department. The refund shall be paid by the State
25Treasurer out of the tax fund referenced under paragraph (g)
26of this Section or the Local Government Aviation Trust Fund,

 

 

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1as appropriate.
2    If a tax is imposed under this subsection (b), a tax shall
3also be imposed at the same rate under subsections (c) and (d)
4of this Section.
5    For the purpose of determining whether a tax authorized
6under this Section is applicable, a retail sale, by a producer
7of coal or other mineral mined in Illinois, is a sale at retail
8at the place where the coal or other mineral mined in Illinois
9is extracted from the earth. This paragraph does not apply to
10coal or other mineral when it is delivered or shipped by the
11seller to the purchaser at a point outside Illinois so that the
12sale is exempt under the Federal Constitution as a sale in
13interstate or foreign commerce.
14    Nothing in this Section shall be construed to authorize
15the Authority to impose a tax upon the privilege of engaging in
16any business which under the Constitution of the United States
17may not be made the subject of taxation by this State.
18    (c) If a tax has been imposed under subsection (b), a
19service occupation tax shall also be imposed at the same rate
20upon all persons engaged, in the metropolitan area, in the
21business of making sales of service, who, as an incident to
22making those sales of service, transfer tangible personal
23property within the metropolitan area as an incident to a sale
24of service. The tax imposed under this subsection and all
25civil penalties that may be assessed as an incident thereof
26shall be collected and enforced by the Department of Revenue.

 

 

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1    Beginning December 1, 2019 and through December 31, 2020,
2this tax is not imposed on sales of aviation fuel unless the
3tax revenue is expended for airport-related purposes. If the
4Authority does not have an airport-related purpose to which it
5dedicates aviation fuel tax revenue, then aviation fuel is
6excluded from the tax. The Authority must comply with the
7certification requirements for airport-related purposes under
8Section 2-22 of the Retailers' Occupation Tax Act. Beginning
9January 1, 2021, this tax is not imposed on sales of aviation
10fuel for so long as the revenue use requirements of 49 U.S.C.
1147107(b) and 49 U.S.C. 47133 are binding on the Authority.
12    The Department has full power to administer and enforce
13this paragraph; to collect all taxes and penalties due
14hereunder; to dispose of taxes and penalties so collected in
15the manner hereinafter provided; and to determine all rights
16to credit memoranda arising on account of the erroneous
17payment of tax or penalty hereunder. In the administration of,
18and compliance with this paragraph, the Department and persons
19who are subject to this paragraph shall (i) have the same
20rights, remedies, privileges, immunities, powers, and duties,
21(ii) be subject to the same conditions, restrictions,
22limitations, penalties, exclusions, exemptions, and
23definitions of terms, and (iii) employ the same modes of
24procedure as are prescribed in Sections 2 (except that the
25reference to State in the definition of supplier maintaining a
26place of business in this State shall mean the metropolitan

 

 

10300HB4951sam002- 762 -LRB103 38094 HLH 74177 a

1area), 2a, 2b, 3 through 3-55 (in respect to all provisions
2therein other than the State rate of tax), 4 (except that the
3reference to the State shall be to the Authority), 5, 7, 8
4(except that the jurisdiction to which the tax shall be a debt
5to the extent indicated in that Section 8 shall be the
6Authority), 9 (except as to the disposition of taxes and
7penalties collected, and except that the returned merchandise
8credit for this tax may not be taken against any State tax, and
9except that the retailer's discount is not allowed for taxes
10paid on aviation fuel that are subject to the revenue use
11requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 11,
1212 (except the reference therein to Section 2b of the
13Retailers' Occupation Tax Act), 13 (except that any reference
14to the State shall mean the Authority), 15, 16, 17, 18, 19 and
1520 of the Service Occupation Tax Act and Section 3-7 of the
16Uniform Penalty and Interest Act, as fully as if those
17provisions were set forth herein.
18    Persons subject to any tax imposed under the authority
19granted in this subsection may reimburse themselves for their
20serviceman's tax liability by separately stating the tax as an
21additional charge, which charge may be stated in combination,
22in a single amount, with State tax that servicemen are
23authorized to collect under the Service Use Tax Act, in
24accordance with such bracket schedules as the Department may
25prescribe.
26    Whenever the Department determines that a refund should be

 

 

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1made under this subsection to a claimant instead of issuing a
2credit memorandum, the Department shall notify the State
3Comptroller, who shall cause the warrant to be drawn for the
4amount specified, and to the person named, in the notification
5from the Department. The refund shall be paid by the State
6Treasurer out of the tax fund referenced under paragraph (g)
7of this Section or the Local Government Aviation Trust Fund,
8as appropriate.
9    Nothing in this paragraph shall be construed to authorize
10the Authority to impose a tax upon the privilege of engaging in
11any business which under the Constitution of the United States
12may not be made the subject of taxation by the State.
13    (c-5) If, on January 1, 2025, a unit of local government
14has in effect a tax under this Section, or if, after January 1,
152025, a unit of local government imposes a tax under this
16Section, then that tax applies to leases of tangible personal
17property in effect, entered into, or renewed on or after that
18date in the same manner as the tax under this Section and in
19accordance with the changes made by this amendatory Act of the
20103rd General Assembly.
21    (d) If a tax has been imposed under subsection (b), a use
22tax shall also be imposed at the same rate upon the privilege
23of using, in the metropolitan area, any item of tangible
24personal property that is purchased outside the metropolitan
25area at retail from a retailer, and that is titled or
26registered at a location within the metropolitan area with an

 

 

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1agency of this State's government. "Selling price" is defined
2as in the Use Tax Act. The tax shall be collected from persons
3whose Illinois address for titling or registration purposes is
4given as being in the metropolitan area. The tax shall be
5collected by the Department of Revenue for the Authority. The
6tax must be paid to the State, or an exemption determination
7must be obtained from the Department of Revenue, before the
8title or certificate of registration for the property may be
9issued. The tax or proof of exemption may be transmitted to the
10Department by way of the State agency with which, or the State
11officer with whom, the tangible personal property must be
12titled or registered if the Department and the State agency or
13State officer determine that this procedure will expedite the
14processing of applications for title or registration.
15    The Department has full power to administer and enforce
16this paragraph; to collect all taxes, penalties and interest
17due hereunder; to dispose of taxes, penalties and interest so
18collected in the manner hereinafter provided; and to determine
19all rights to credit memoranda or refunds arising on account
20of the erroneous payment of tax, penalty or interest
21hereunder. In the administration of, and compliance with, this
22subsection, the Department and persons who are subject to this
23paragraph shall (i) have the same rights, remedies,
24privileges, immunities, powers, and duties, (ii) be subject to
25the same conditions, restrictions, limitations, penalties,
26exclusions, exemptions, and definitions of terms, and (iii)

 

 

10300HB4951sam002- 765 -LRB103 38094 HLH 74177 a

1employ the same modes of procedure as are prescribed in
2Sections 2 (except the definition of "retailer maintaining a
3place of business in this State"), 3, 3-5, 3-10, 3-45, 3-55,
43-65, 3-70, 3-85, 3a, 4, 6, 7, 8 (except that the jurisdiction
5to which the tax shall be a debt to the extent indicated in
6that Section 8 shall be the Authority), 9 (except provisions
7relating to quarter monthly payments), 10, 11, 12, 12a, 12b,
813, 14, 15, 19, 20, 21, and 22 of the Use Tax Act and Section
93-7 of the Uniform Penalty and Interest Act, that are not
10inconsistent with this paragraph, as fully as if those
11provisions were set forth herein.
12    Whenever the Department determines that a refund should be
13made under this subsection to a claimant instead of issuing a
14credit memorandum, the Department shall notify the State
15Comptroller, who shall cause the order to be drawn for the
16amount specified, and to the person named, in the notification
17from the Department. The refund shall be paid by the State
18Treasurer out of the tax fund referenced under paragraph (g)
19of this Section.
20    (e) A certificate of registration issued by the State
21Department of Revenue to a retailer under the Retailers'
22Occupation Tax Act or under the Service Occupation Tax Act
23shall permit the registrant to engage in a business that is
24taxed under the tax imposed under paragraphs (b), (c), or (d)
25of this Section and no additional registration shall be
26required. A certificate issued under the Use Tax Act or the

 

 

10300HB4951sam002- 766 -LRB103 38094 HLH 74177 a

1Service Use Tax Act shall be applicable with regard to any tax
2imposed under paragraph (c) of this Section.
3    (f) The results of any election authorizing a proposition
4to impose a tax under this Section or effecting a change in the
5rate of tax shall be certified by the proper election
6authorities and filed with the Illinois Department on or
7before the first day of April. In addition, an ordinance
8imposing, discontinuing, or effecting a change in the rate of
9tax under this Section shall be adopted and a certified copy
10thereof filed with the Department on or before the first day of
11April. After proper receipt of such certifications, the
12Department shall proceed to administer and enforce this
13Section as of the first day of July next following such
14adoption and filing.
15    (g) Except as otherwise provided, the Department of
16Revenue shall, upon collecting any taxes and penalties as
17provided in this Section, pay the taxes and penalties over to
18the State Treasurer as trustee for the Authority. The taxes
19and penalties shall be held in a trust fund outside the State
20Treasury. Taxes and penalties collected on aviation fuel sold
21on or after December 1, 2019 and through December 31, 2020,
22shall be immediately paid over by the Department to the State
23Treasurer, ex officio, as trustee, for deposit into the Local
24Government Aviation Trust Fund. The Department shall only pay
25moneys into the Local Government Aviation Trust Fund under
26this Section for so long as the revenue use requirements of 49

 

 

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1U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
2District. On or before the 25th day of each calendar month, the
3Department of Revenue shall prepare and certify to the
4Comptroller of the State of Illinois the amount to be paid to
5the Authority, which shall be the balance in the fund, less any
6amount determined by the Department to be necessary for the
7payment of refunds and not including taxes and penalties
8collected on aviation fuel sold on or after December 1, 2019.
9Within 10 days after receipt by the Comptroller of the
10certification of the amount to be paid to the Authority, the
11Comptroller shall cause an order to be drawn for payment for
12the amount in accordance with the directions contained in the
13certification. Amounts received from the tax imposed under
14this Section shall be used only for the support, construction,
15maintenance, or financing of a facility of the Authority.
16    (h) When certifying the amount of a monthly disbursement
17to the Authority under this Section, the Department shall
18increase or decrease the amounts by an amount necessary to
19offset any miscalculation of previous disbursements. The
20offset amount shall be the amount erroneously disbursed within
21the previous 6 months from the time a miscalculation is
22discovered.
23    (i) This Section may be cited as the Salem Civic Center Use
24and Occupation Tax Law.
25(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 

 

 

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1    Section 75-45. The Flood Prevention District Act is
2amended by changing Section 25 as follows:
 
3    (70 ILCS 750/25)
4    Sec. 25. Flood prevention retailers' and service
5occupation taxes.
6    (a) If the Board of Commissioners of a flood prevention
7district determines that an emergency situation exists
8regarding levee repair or flood prevention, and upon an
9ordinance confirming the determination adopted by the
10affirmative vote of a majority of the members of the county
11board of the county in which the district is situated, the
12county may impose a flood prevention retailers' occupation tax
13upon all persons engaged in the business of selling tangible
14personal property at retail within the territory of the
15district to provide revenue to pay the costs of providing
16emergency levee repair and flood prevention and to secure the
17payment of bonds, notes, and other evidences of indebtedness
18issued under this Act for a period not to exceed 25 years or as
19required to repay the bonds, notes, and other evidences of
20indebtedness issued under this Act. The tax rate shall be
210.25% of the gross receipts from all taxable sales made in the
22course of that business. Beginning December 1, 2019 and
23through December 31, 2020, this tax is not imposed on sales of
24aviation fuel unless the tax revenue is expended for
25airport-related purposes. If the District does not have an

 

 

10300HB4951sam002- 769 -LRB103 38094 HLH 74177 a

1airport-related purpose to which it dedicates aviation fuel
2tax revenue, then aviation fuel is excluded from the tax. The
3County must comply with the certification requirements for
4airport-related purposes under Section 2-22 of the Retailers'
5Occupation Tax Act. The tax imposed under this Section and all
6civil penalties that may be assessed as an incident thereof
7shall be collected and enforced by the State Department of
8Revenue. The Department shall have full power to administer
9and enforce this Section; to collect all taxes and penalties
10so collected in the manner hereinafter provided; and to
11determine all rights to credit memoranda arising on account of
12the erroneous payment of tax or penalty hereunder.
13    For purposes of this Act, "airport-related purposes" has
14the meaning ascribed in Section 6z-20.2 of the State Finance
15Act. Beginning January 1, 2021, this tax is not imposed on
16sales of aviation fuel for so long as the revenue use
17requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
18binding on the District.
19    In the administration of and compliance with this
20subsection, the Department and persons who are subject to this
21subsection (i) have the same rights, remedies, privileges,
22immunities, powers, and duties, (ii) are subject to the same
23conditions, restrictions, limitations, penalties, and
24definitions of terms, and (iii) shall employ the same modes of
25procedure as are set forth in Sections 1 through 1o, 2 through
262-70 (in respect to all provisions contained in those Sections

 

 

10300HB4951sam002- 770 -LRB103 38094 HLH 74177 a

1other than the State rate of tax), 2a through 2h, 3 (except as
2to the disposition of taxes and penalties collected, and
3except that the retailer's discount is not allowed for taxes
4paid on aviation fuel that are subject to the revenue use
5requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
65a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5l, 6, 6a, 6b, 6c, 6d, 7,
78, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax
8Act and all provisions of the Uniform Penalty and Interest Act
9as if those provisions were set forth in this subsection.
10    Persons subject to any tax imposed under this Section may
11reimburse themselves for their seller's tax liability
12hereunder by separately stating the tax as an additional
13charge, which charge may be stated in combination in a single
14amount with State taxes that sellers are required to collect
15under the Use Tax Act, under any bracket schedules the
16Department may prescribe.
17    If a tax is imposed under this subsection (a), a tax shall
18also be imposed under subsection (b) of this Section.
19    (b) If a tax has been imposed under subsection (a), a flood
20prevention service occupation tax shall also be imposed upon
21all persons engaged within the territory of the district in
22the business of making sales of service, who, as an incident to
23making the sales of service, transfer tangible personal
24property, either in the form of tangible personal property or
25in the form of real estate as an incident to a sale of service
26to provide revenue to pay the costs of providing emergency

 

 

10300HB4951sam002- 771 -LRB103 38094 HLH 74177 a

1levee repair and flood prevention and to secure the payment of
2bonds, notes, and other evidences of indebtedness issued under
3this Act for a period not to exceed 25 years or as required to
4repay the bonds, notes, and other evidences of indebtedness.
5The tax rate shall be 0.25% of the selling price of all
6tangible personal property transferred. Beginning December 1,
72019 and through December 31, 2020, this tax is not imposed on
8sales of aviation fuel unless the tax revenue is expended for
9airport-related purposes. If the District does not have an
10airport-related purpose to which it dedicates aviation fuel
11tax revenue, then aviation fuel is excluded from the tax. The
12County must comply with the certification requirements for
13airport-related purposes under Section 2-22 of the Retailers'
14Occupation Tax Act. For purposes of this Act, "airport-related
15purposes" has the meaning ascribed in Section 6z-20.2 of the
16State Finance Act. Beginning January 1, 2021, this tax is not
17imposed on sales of aviation fuel for so long as the revenue
18use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
19binding on the District.
20    The tax imposed under this subsection and all civil
21penalties that may be assessed as an incident thereof shall be
22collected and enforced by the State Department of Revenue. The
23Department shall have full power to administer and enforce
24this subsection; to collect all taxes and penalties due
25hereunder; to dispose of taxes and penalties collected in the
26manner hereinafter provided; and to determine all rights to

 

 

10300HB4951sam002- 772 -LRB103 38094 HLH 74177 a

1credit memoranda arising on account of the erroneous payment
2of tax or penalty hereunder.
3    In the administration of and compliance with this
4subsection, the Department and persons who are subject to this
5subsection shall (i) have the same rights, remedies,
6privileges, immunities, powers, and duties, (ii) be subject to
7the same conditions, restrictions, limitations, penalties, and
8definitions of terms, and (iii) employ the same modes of
9procedure as are set forth in Sections 2 (except that the
10reference to State in the definition of supplier maintaining a
11place of business in this State means the district), 2a
12through 2d, 3 through 3-50 (in respect to all provisions
13contained in those Sections other than the State rate of tax),
144 (except that the reference to the State shall be to the
15district), 5, 7, 8 (except that the jurisdiction to which the
16tax is a debt to the extent indicated in that Section 8 is the
17district), 9 (except as to the disposition of taxes and
18penalties collected, and except that the retailer's discount
19is not allowed for taxes paid on aviation fuel that are subject
20to the revenue use requirements of 49 U.S.C. 47107(b) and 49
21U.S.C. 47133), 10, 11, 12 (except the reference therein to
22Section 2b of the Retailers' Occupation Tax Act), 13 (except
23that any reference to the State means the district), Section
2415, 16, 17, 18, 19, and 20 of the Service Occupation Tax Act
25and all provisions of the Uniform Penalty and Interest Act, as
26fully as if those provisions were set forth herein.

 

 

10300HB4951sam002- 773 -LRB103 38094 HLH 74177 a

1    Persons subject to any tax imposed under the authority
2granted in this subsection may reimburse themselves for their
3serviceman's tax liability hereunder by separately stating the
4tax as an additional charge, that charge may be stated in
5combination in a single amount with State tax that servicemen
6are authorized to collect under the Service Use Tax Act, under
7any bracket schedules the Department may prescribe.
8    (c) The taxes imposed in subsections (a) and (b) may not be
9imposed on personal property titled or registered with an
10agency of the State or on personal property taxed at the 1%
11rate under the Retailers' Occupation Tax Act and the Service
12Occupation Tax Act (or at the 0% rate imposed under this
13amendatory Act of the 102nd General Assembly).
14    (c-5) If, on January 1, 2025, a unit of local government
15has in effect a tax under this Section, or if, after January 1,
162025, a unit of local government imposes a tax under this
17Section, then that tax applies to leases of tangible personal
18property in effect, entered into, or renewed on or after that
19date in the same manner as the tax under this Section and in
20accordance with the changes made by this amendatory Act of the
21103rd General Assembly.
22    (d) Nothing in this Section shall be construed to
23authorize the district to impose a tax upon the privilege of
24engaging in any business that under the Constitution of the
25United States may not be made the subject of taxation by the
26State.

 

 

10300HB4951sam002- 774 -LRB103 38094 HLH 74177 a

1    (e) The certificate of registration that is issued by the
2Department to a retailer under the Retailers' Occupation Tax
3Act or a serviceman under the Service Occupation Tax Act
4permits the retailer or serviceman to engage in a business
5that is taxable without registering separately with the
6Department under an ordinance or resolution under this
7Section.
8    (f) Except as otherwise provided, the Department shall
9immediately pay over to the State Treasurer, ex officio, as
10trustee, all taxes and penalties collected under this Section
11to be deposited into the Flood Prevention Occupation Tax Fund,
12which shall be an unappropriated trust fund held outside the
13State treasury. Taxes and penalties collected on aviation fuel
14sold on or after December 1, 2019 and through December 31,
152020, shall be immediately paid over by the Department to the
16State Treasurer, ex officio, as trustee, for deposit into the
17Local Government Aviation Trust Fund. The Department shall
18only pay moneys into the Local Government Aviation Trust Fund
19under this Act for so long as the revenue use requirements of
2049 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
21District.
22    On or before the 25th day of each calendar month, the
23Department shall prepare and certify to the Comptroller the
24disbursement of stated sums of money to the counties from
25which retailers or servicemen have paid taxes or penalties to
26the Department during the second preceding calendar month. The

 

 

10300HB4951sam002- 775 -LRB103 38094 HLH 74177 a

1amount to be paid to each county is equal to the amount (not
2including credit memoranda and not including taxes and
3penalties collected on aviation fuel sold on or after December
41, 2019 and through December 31, 2020) collected from the
5county under this Section during the second preceding calendar
6month by the Department, (i) less 2% of that amount (except the
7amount collected on aviation fuel sold on or after December 1,
82019 and through December 31, 2020), which shall be deposited
9into the Tax Compliance and Administration Fund and shall be
10used by the Department in administering and enforcing the
11provisions of this Section on behalf of the county, (ii) plus
12an amount that the Department determines is necessary to
13offset any amounts that were erroneously paid to a different
14taxing body; (iii) less an amount equal to the amount of
15refunds made during the second preceding calendar month by the
16Department on behalf of the county; and (iv) less any amount
17that the Department determines is necessary to offset any
18amounts that were payable to a different taxing body but were
19erroneously paid to the county. When certifying the amount of
20a monthly disbursement to a county under this Section, the
21Department shall increase or decrease the amounts by an amount
22necessary to offset any miscalculation of previous
23disbursements within the previous 6 months from the time a
24miscalculation is discovered.
25    Within 10 days after receipt by the Comptroller from the
26Department of the disbursement certification to the counties

 

 

10300HB4951sam002- 776 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 777 -LRB103 38094 HLH 74177 a

1    (j) County Flood Prevention Occupation Tax Fund. All
2proceeds received by a county from a tax distribution under
3this Section must be maintained in a special fund known as the
4[name of county] flood prevention occupation tax fund. The
5county shall, at the direction of the flood prevention
6district, use moneys in the fund to pay the costs of providing
7emergency levee repair and flood prevention and to pay bonds,
8notes, and other evidences of indebtedness issued under this
9Act.
10    (k) This Section may be cited as the Flood Prevention
11Occupation Tax Law.
12(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19;
13102-700, eff. 4-19-22.)
 
14    Section 75-50. The Metro-East Park and Recreation District
15Act is amended by changing Section 30 as follows:
 
16    (70 ILCS 1605/30)
17    Sec. 30. Taxes.
18    (a) The board shall impose a tax upon all persons engaged
19in the business of selling tangible personal property, other
20than personal property titled or registered with an agency of
21this State's government, at retail in the District on the
22gross receipts from the sales made in the course of business.
23This tax shall be imposed only at the rate of one-tenth of one
24per cent.

 

 

10300HB4951sam002- 778 -LRB103 38094 HLH 74177 a

1    This additional tax may not be imposed on tangible
2personal property taxed at the 1% rate under the Retailers'
3Occupation Tax Act (or at the 0% rate imposed under this
4amendatory Act of the 102nd General Assembly). Beginning
5December 1, 2019 and through December 31, 2020, this tax is not
6imposed on sales of aviation fuel unless the tax revenue is
7expended for airport-related purposes. If the District does
8not have an airport-related purpose to which it dedicates
9aviation fuel tax revenue, then aviation fuel shall be
10excluded from tax. The board must comply with the
11certification requirements for airport-related purposes under
12Section 2-22 of the Retailers' Occupation Tax Act. For
13purposes of this Act, "airport-related purposes" has the
14meaning ascribed in Section 6z-20.2 of the State Finance Act.
15Beginning January 1, 2021, this tax is not imposed on sales of
16aviation fuel for so long as the revenue use requirements of 49
17U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
18District. The tax imposed by the Board under this Section and
19all civil penalties that may be assessed as an incident of the
20tax shall be collected and enforced by the Department of
21Revenue. The certificate of registration that is issued by the
22Department to a retailer under the Retailers' Occupation Tax
23Act shall permit the retailer to engage in a business that is
24taxable without registering separately with the Department
25under an ordinance or resolution under this Section. The
26Department has full power to administer and enforce this

 

 

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1Section, to collect all taxes and penalties due under this
2Section, to dispose of taxes and penalties so collected in the
3manner provided in this Section, and to determine all rights
4to credit memoranda arising on account of the erroneous
5payment of a tax or penalty under this Section. In the
6administration of and compliance with this Section, the
7Department and persons who are subject to this Section shall
8(i) have the same rights, remedies, privileges, immunities,
9powers, and duties, (ii) be subject to the same conditions,
10restrictions, limitations, penalties, and definitions of
11terms, and (iii) employ the same modes of procedure as are
12prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
131n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
14contained in those Sections other than the State rate of tax),
152-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except provisions
16relating to transaction returns and quarter monthly payments,
17and except that the retailer's discount is not allowed for
18taxes paid on aviation fuel that are subject to the revenue use
19requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
205a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c,
216d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
22Occupation Tax Act and the Uniform Penalty and Interest Act as
23if those provisions were set forth in this Section.
24    Persons subject to any tax imposed under the authority
25granted in this Section may reimburse themselves for their
26sellers' tax liability by separately stating the tax as an

 

 

10300HB4951sam002- 780 -LRB103 38094 HLH 74177 a

1additional charge, which charge may be stated in combination,
2in a single amount, with State tax which sellers are required
3to collect under the Use Tax Act, pursuant to such bracketed
4schedules as the Department may prescribe.
5    Whenever the Department determines that a refund should be
6made under this Section to a claimant instead of issuing a
7credit memorandum, the Department shall notify the State
8Comptroller, who shall cause the order to be drawn for the
9amount specified and to the person named in the notification
10from the Department. The refund shall be paid by the State
11Treasurer out of the State Metro-East Park and Recreation
12District Fund or the Local Government Aviation Trust Fund, as
13appropriate.
14    (b) If a tax has been imposed under subsection (a), a
15service occupation tax shall also be imposed at the same rate
16upon all persons engaged, in the District, in the business of
17making sales of service, who, as an incident to making those
18sales of service, transfer tangible personal property within
19the District as an incident to a sale of service. This tax may
20not be imposed on tangible personal property taxed at the 1%
21rate under the Service Occupation Tax Act (or at the 0% rate
22imposed under this amendatory Act of the 102nd General
23Assembly). Beginning December 1, 2019 and through December 31,
242020, this tax may not be imposed on sales of aviation fuel
25unless the tax revenue is expended for airport-related
26purposes. If the District does not have an airport-related

 

 

10300HB4951sam002- 781 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 782 -LRB103 38094 HLH 74177 a

1place of business in this State shall mean the District), 2a,
22b, 2c, 3 through 3-50 (in respect to all provisions therein
3other than the State rate of tax), 4 (except that the reference
4to the State shall be to the District), 5, 7, 8 (except that
5the jurisdiction to which the tax shall be a debt to the extent
6indicated in that Section 8 shall be the District), 9 (except
7as to the disposition of taxes and penalties collected, and
8except that the retailer's discount is not allowed for taxes
9paid on aviation fuel that are subject to the revenue use
10requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
1111, 12 (except the reference therein to Section 2b of the
12Retailers' Occupation Tax Act), 13 (except that any reference
13to the State shall mean the District), Sections 15, 16, 17, 18,
1419 and 20 of the Service Occupation Tax Act and the Uniform
15Penalty and Interest Act, as fully as if those provisions were
16set forth herein.
17    Persons subject to any tax imposed under the authority
18granted in this subsection may reimburse themselves for their
19serviceman's tax liability by separately stating the tax as an
20additional charge, which charge may be stated in combination,
21in a single amount, with State tax that servicemen are
22authorized to collect under the Service Use Tax Act, in
23accordance with such bracket schedules as the Department may
24prescribe.
25    Whenever the Department determines that a refund should be
26made under this subsection to a claimant instead of issuing a

 

 

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1credit memorandum, the Department shall notify the State
2Comptroller, who shall cause the warrant to be drawn for the
3amount specified, and to the person named, in the notification
4from the Department. The refund shall be paid by the State
5Treasurer out of the State Metro-East Park and Recreation
6District Fund or the Local Government Aviation Trust Fund, as
7appropriate.
8    Nothing in this subsection shall be construed to authorize
9the board to impose a tax upon the privilege of engaging in any
10business which under the Constitution of the United States may
11not be made the subject of taxation by the State.
12    (b-5) If, on January 1, 2025, a unit of local government
13has in effect a tax under this Section, or if, after January 1,
142025, a unit of local government imposes a tax under this
15Section, then that tax applies to leases of tangible personal
16property in effect, entered into, or renewed on or after that
17date in the same manner as the tax under this Section and in
18accordance with the changes made by this amendatory Act of the
19103rd General Assembly.
20    (c) Except as otherwise provided in this paragraph, the
21Department shall immediately pay over to the State Treasurer,
22ex officio, as trustee, all taxes and penalties collected
23under this Section to be deposited into the State Metro-East
24Park and Recreation District Fund, which shall be an
25unappropriated trust fund held outside of the State treasury.
26Taxes and penalties collected on aviation fuel sold on or

 

 

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1after December 1, 2019 and through December 31, 2020, shall be
2immediately paid over by the Department to the State
3Treasurer, ex officio, as trustee, for deposit into the Local
4Government Aviation Trust Fund. The Department shall only pay
5moneys into the Local Government Aviation Trust Fund under
6this Act for so long as the revenue use requirements of 49
7U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
8District.
9    As soon as possible after the first day of each month,
10beginning January 1, 2011, upon certification of the
11Department of Revenue, the Comptroller shall order
12transferred, and the Treasurer shall transfer, to the STAR
13Bonds Revenue Fund the local sales tax increment, as defined
14in the Innovation Development and Economy Act, collected under
15this Section during the second preceding calendar month for
16sales within a STAR bond district. The Department shall make
17this certification only if the Metro East Park and Recreation
18District imposes a tax on real property as provided in the
19definition of "local sales taxes" under the Innovation
20Development and Economy Act.
21    After the monthly transfer to the STAR Bonds Revenue Fund,
22on or before the 25th day of each calendar month, the
23Department shall prepare and certify to the Comptroller the
24disbursement of stated sums of money pursuant to Section 35 of
25this Act to the District from which retailers have paid taxes
26or penalties to the Department during the second preceding

 

 

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

 

 

10300HB4951sam002- 786 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 787 -LRB103 38094 HLH 74177 a

1to the District under this Section, the Department shall
2increase or decrease the amounts by an amount necessary to
3offset any misallocation of previous disbursements. The offset
4amount shall be the amount erroneously disbursed within the
5previous 6 months from the time a misallocation is discovered.
6(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
7101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
8    Section 75-55. The Local Mass Transit District Act is
9amended by changing Section 5.01 as follows:
 
10    (70 ILCS 3610/5.01)  (from Ch. 111 2/3, par. 355.01)
11    Sec. 5.01. Metro East Mass Transit District; use and
12occupation taxes.
13    (a) The Board of Trustees of any Metro East Mass Transit
14District may, by ordinance adopted with the concurrence of
15two-thirds of the then trustees, impose throughout the
16District any or all of the taxes and fees provided in this
17Section. Except as otherwise provided, all taxes and fees
18imposed under this Section shall be used only for public mass
19transportation systems, and the amount used to provide mass
20transit service to unserved areas of the District shall be in
21the same proportion to the total proceeds as the number of
22persons residing in the unserved areas is to the total
23population of the District. Except as otherwise provided in
24this Act, taxes imposed under this Section and civil penalties

 

 

10300HB4951sam002- 788 -LRB103 38094 HLH 74177 a

1imposed incident thereto shall be collected and enforced by
2the State Department of Revenue. The Department shall have the
3power to administer and enforce the taxes and to determine all
4rights for refunds for erroneous payments of the taxes.
5    (b) The Board may impose a Metro East Mass Transit
6District Retailers' Occupation Tax upon all persons engaged in
7the business of selling tangible personal property at retail
8in the district at a rate of 1/4 of 1%, or as authorized under
9subsection (d-5) of this Section, of the gross receipts from
10the sales made in the course of such business within the
11district, except that the rate of tax imposed under this
12Section on sales of aviation fuel on or after December 1, 2019
13shall be 0.25% in Madison County unless the Metro-East Mass
14Transit District in Madison County has an "airport-related
15purpose" and any additional amount authorized under subsection
16(d-5) is expended for airport-related purposes. If there is no
17airport-related purpose to which aviation fuel tax revenue is
18dedicated, then aviation fuel is excluded from any additional
19amount authorized under subsection (d-5). The rate in St.
20Clair County shall be 0.25% unless the Metro-East Mass Transit
21District in St. Clair County has an "airport-related purpose"
22and the additional 0.50% of the 0.75% tax on aviation fuel
23imposed in that County is expended for airport-related
24purposes. If there is no airport-related purpose to which
25aviation fuel tax revenue is dedicated, then aviation fuel is
26excluded from the additional 0.50% of the 0.75% tax.

 

 

10300HB4951sam002- 789 -LRB103 38094 HLH 74177 a

1    The Board must comply with the certification requirements
2for airport-related purposes under Section 2-22 of the
3Retailers' Occupation Tax Act. For purposes of this Section,
4"airport-related purposes" has the meaning ascribed in Section
56z-20.2 of the State Finance Act. This exclusion for aviation
6fuel only applies for so long as the revenue use requirements
7of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
8District.
9    The tax imposed under this Section and all civil penalties
10that may be assessed as an incident thereof shall be collected
11and enforced by the State Department of Revenue. The
12Department shall have full power to administer and enforce
13this Section; to collect all taxes and penalties so collected
14in the manner hereinafter provided; and to determine all
15rights to credit memoranda arising on account of the erroneous
16payment of tax or penalty hereunder. In the administration of,
17and compliance with, this Section, the Department and persons
18who are subject to this Section shall have the same rights,
19remedies, privileges, immunities, powers and duties, and be
20subject to the same conditions, restrictions, limitations,
21penalties, exclusions, exemptions and definitions of terms and
22employ the same modes of procedure, as are prescribed in
23Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
24(in respect to all provisions therein other than the State
25rate of tax), 2c, 3 (except as to the disposition of taxes and
26penalties collected, and except that the retailer's discount

 

 

10300HB4951sam002- 790 -LRB103 38094 HLH 74177 a

1is not allowed for taxes paid on aviation fuel that are subject
2to the revenue use requirements of 49 U.S.C. 47107(b) and 49
3U.S.C. 47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
45l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, 13, and 14 of the
5Retailers' Occupation Tax Act and Section 3-7 of the Uniform
6Penalty and Interest Act, as fully as if those provisions were
7set forth herein.
8    Persons subject to any tax imposed under the Section may
9reimburse themselves for their seller's tax liability
10hereunder by separately stating the tax as an additional
11charge, which charge may be stated in combination, in a single
12amount, with State taxes that sellers are required to collect
13under the Use Tax Act, in accordance with such bracket
14schedules as the Department may prescribe.
15    Whenever the Department determines that a refund should be
16made under this Section to a claimant instead of issuing a
17credit memorandum, the Department shall notify the State
18Comptroller, who shall cause the warrant to be drawn for the
19amount specified, and to the person named, in the notification
20from the Department. The refund shall be paid by the State
21Treasurer out of the Metro East Mass Transit District tax fund
22established under paragraph (h) of this Section or the Local
23Government Aviation Trust Fund, as appropriate.
24    If a tax is imposed under this subsection (b), a tax shall
25also be imposed under subsections (c) and (d) of this Section.
26    For the purpose of determining whether a tax authorized

 

 

10300HB4951sam002- 791 -LRB103 38094 HLH 74177 a

1under this Section is applicable, a retail sale, by a producer
2of coal or other mineral mined in Illinois, is a sale at retail
3at the place where the coal or other mineral mined in Illinois
4is extracted from the earth. This paragraph does not apply to
5coal or other mineral when it is delivered or shipped by the
6seller to the purchaser at a point outside Illinois so that the
7sale is exempt under the Federal Constitution as a sale in
8interstate or foreign commerce.
9    No tax shall be imposed or collected under this subsection
10on the sale of a motor vehicle in this State to a resident of
11another state if that motor vehicle will not be titled in this
12State.
13    Nothing in this Section shall be construed to authorize
14the Metro East Mass Transit District to impose a tax upon the
15privilege of engaging in any business which under the
16Constitution of the United States may not be made the subject
17of taxation by this State.
18    (c) If a tax has been imposed under subsection (b), a Metro
19East Mass Transit District Service Occupation Tax shall also
20be imposed upon all persons engaged, in the district, in the
21business of making sales of service, who, as an incident to
22making those sales of service, transfer tangible personal
23property within the District, either in the form of tangible
24personal property or in the form of real estate as an incident
25to a sale of service. The tax rate shall be 1/4%, or as
26authorized under subsection (d-5) of this Section, of the

 

 

10300HB4951sam002- 792 -LRB103 38094 HLH 74177 a

1selling price of tangible personal property so transferred
2within the district, except that the rate of tax imposed in
3these Counties under this Section on sales of aviation fuel on
4or after December 1, 2019 shall be 0.25% in Madison County
5unless the Metro-East Mass Transit District in Madison County
6has an "airport-related purpose" and any additional amount
7authorized under subsection (d-5) is expended for
8airport-related purposes. If there is no airport-related
9purpose to which aviation fuel tax revenue is dedicated, then
10aviation fuel is excluded from any additional amount
11authorized under subsection (d-5). The rate in St. Clair
12County shall be 0.25% unless the Metro-East Mass Transit
13District in St. Clair County has an "airport-related purpose"
14and the additional 0.50% of the 0.75% tax on aviation fuel is
15expended for airport-related purposes. If there is no
16airport-related purpose to which aviation fuel tax revenue is
17dedicated, then aviation fuel is excluded from the additional
180.50% of the 0.75% tax.
19    The Board must comply with the certification requirements
20for airport-related purposes under Section 2-22 of the
21Retailers' Occupation Tax Act. For purposes of this Section,
22"airport-related purposes" has the meaning ascribed in Section
236z-20.2 of the State Finance Act. This exclusion for aviation
24fuel only applies for so long as the revenue use requirements
25of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
26District.

 

 

10300HB4951sam002- 793 -LRB103 38094 HLH 74177 a

1    The tax imposed under this paragraph and all civil
2penalties that may be assessed as an incident thereof shall be
3collected and enforced by the State Department of Revenue. The
4Department shall have full power to administer and enforce
5this paragraph; to collect all taxes and penalties due
6hereunder; to dispose of taxes and penalties so collected in
7the manner hereinafter provided; and to determine all rights
8to credit memoranda arising on account of the erroneous
9payment of tax or penalty hereunder. In the administration of,
10and compliance with this paragraph, the Department and persons
11who are subject to this paragraph shall have the same rights,
12remedies, privileges, immunities, powers and duties, and be
13subject to the same conditions, restrictions, limitations,
14penalties, exclusions, exemptions and definitions of terms and
15employ the same modes of procedure as are prescribed in
16Sections 1a-1, 2 (except that the reference to State in the
17definition of supplier maintaining a place of business in this
18State shall mean the Authority), 2a, 3 through 3-50 (in
19respect to all provisions therein other than the State rate of
20tax), 4 (except that the reference to the State shall be to the
21Authority), 5, 7, 8 (except that the jurisdiction to which the
22tax shall be a debt to the extent indicated in that Section 8
23shall be the District), 9 (except as to the disposition of
24taxes and penalties collected, and except that the returned
25merchandise credit for this tax may not be taken against any
26State tax, and except that the retailer's discount is not

 

 

10300HB4951sam002- 794 -LRB103 38094 HLH 74177 a

1allowed for taxes paid on aviation fuel that are subject to the
2revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
347133), 10, 11, 12 (except the reference therein to Section 2b
4of the Retailers' Occupation Tax Act), 13 (except that any
5reference to the State shall mean the District), the first
6paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service
7Occupation Tax Act and Section 3-7 of the Uniform Penalty and
8Interest Act, as fully as if those provisions were set forth
9herein.
10    Persons subject to any tax imposed under the authority
11granted in this paragraph may reimburse themselves for their
12serviceman's tax liability hereunder by separately stating the
13tax as an additional charge, which charge may be stated in
14combination, in a single amount, with State tax that
15servicemen are authorized to collect under the Service Use Tax
16Act, in accordance with such bracket schedules as the
17Department may prescribe.
18    Whenever the Department determines that a refund should be
19made under this paragraph to a claimant instead of issuing a
20credit memorandum, the Department shall notify the State
21Comptroller, who shall cause the warrant to be drawn for the
22amount specified, and to the person named, in the notification
23from the Department. The refund shall be paid by the State
24Treasurer out of the Metro East Mass Transit District tax fund
25established under paragraph (h) of this Section or the Local
26Government Aviation Trust Fund, as appropriate.

 

 

10300HB4951sam002- 795 -LRB103 38094 HLH 74177 a

1    Nothing in this paragraph shall be construed to authorize
2the District to impose a tax upon the privilege of engaging in
3any business which under the Constitution of the United States
4may not be made the subject of taxation by the State.
5    (d) If a tax has been imposed under subsection (b), a Metro
6East Mass Transit District Use Tax shall also be imposed upon
7the privilege of using, in the district, any item of tangible
8personal property that is purchased outside the district at
9retail from a retailer, and that is titled or registered with
10an agency of this State's government, at a rate of 1/4%, or as
11authorized under subsection (d-5) of this Section, of the
12selling price of the tangible personal property within the
13District, as "selling price" is defined in the Use Tax Act. The
14tax shall be collected from persons whose Illinois address for
15titling or registration purposes is given as being in the
16District. The tax shall be collected by the Department of
17Revenue for the Metro East Mass Transit District. The tax must
18be paid to the State, or an exemption determination must be
19obtained from the Department of Revenue, before the title or
20certificate of registration for the property may be issued.
21The tax or proof of exemption may be transmitted to the
22Department by way of the State agency with which, or the State
23officer with whom, the tangible personal property must be
24titled or registered if the Department and the State agency or
25State officer determine that this procedure will expedite the
26processing of applications for title or registration.

 

 

10300HB4951sam002- 796 -LRB103 38094 HLH 74177 a

1    The Department shall have full power to administer and
2enforce this paragraph; to collect all taxes, penalties and
3interest due hereunder; to dispose of taxes, penalties and
4interest so collected in the manner hereinafter provided; and
5to determine all rights to credit memoranda or refunds arising
6on account of the erroneous payment of tax, penalty or
7interest hereunder. In the administration of, and compliance
8with, this paragraph, the Department and persons who are
9subject to this paragraph shall have the same rights,
10remedies, privileges, immunities, powers and duties, and be
11subject to the same conditions, restrictions, limitations,
12penalties, exclusions, exemptions and definitions of terms and
13employ the same modes of procedure, as are prescribed in
14Sections 2 (except the definition of "retailer maintaining a
15place of business in this State"), 3 through 3-80 (except
16provisions pertaining to the State rate of tax, and except
17provisions concerning collection or refunding of the tax by
18retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
19pertaining to claims by retailers and except the last
20paragraph concerning refunds), 20, 21 and 22 of the Use Tax Act
21and Section 3-7 of the Uniform Penalty and Interest Act, that
22are not inconsistent with this paragraph, as fully as if those
23provisions were set forth herein.
24    Whenever the Department determines that a refund should be
25made under this paragraph to a claimant instead of issuing a
26credit memorandum, the Department shall notify the State

 

 

10300HB4951sam002- 797 -LRB103 38094 HLH 74177 a

1Comptroller, who shall cause the order to be drawn for the
2amount specified, and to the person named, in the notification
3from the Department. The refund shall be paid by the State
4Treasurer out of the Metro East Mass Transit District tax fund
5established under paragraph (h) of this Section.
6    (d-1) If, on January 1, 2025, a unit of local government
7has in effect a tax under subsections (b), (c), and (d) or if,
8after January 1, 2025, a unit of local government imposes a tax
9under subsections (b), (c), and (d), then that tax applies to
10leases of tangible personal property in effect, entered into,
11or renewed on or after that date in the same manner as the tax
12under this Section and in accordance with the changes made by
13this amendatory Act of the 103rd General Assembly.
14    (d-5) (A) The county board of any county participating in
15the Metro East Mass Transit District may authorize, by
16ordinance, a referendum on the question of whether the tax
17rates for the Metro East Mass Transit District Retailers'
18Occupation Tax, the Metro East Mass Transit District Service
19Occupation Tax, and the Metro East Mass Transit District Use
20Tax for the District should be increased from 0.25% to 0.75%.
21Upon adopting the ordinance, the county board shall certify
22the proposition to the proper election officials who shall
23submit the proposition to the voters of the District at the
24next election, in accordance with the general election law.
25    The proposition shall be in substantially the following
26form:

 

 

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1        Shall the tax rates for the Metro East Mass Transit
2    District Retailers' Occupation Tax, the Metro East Mass
3    Transit District Service Occupation Tax, and the Metro
4    East Mass Transit District Use Tax be increased from 0.25%
5    to 0.75%?
6    (B) Two thousand five hundred electors of any Metro East
7Mass Transit District may petition the Chief Judge of the
8Circuit Court, or any judge of that Circuit designated by the
9Chief Judge, in which that District is located to cause to be
10submitted to a vote of the electors the question whether the
11tax rates for the Metro East Mass Transit District Retailers'
12Occupation Tax, the Metro East Mass Transit District Service
13Occupation Tax, and the Metro East Mass Transit District Use
14Tax for the District should be increased from 0.25% to 0.75%.
15    Upon submission of such petition the court shall set a
16date not less than 10 nor more than 30 days thereafter for a
17hearing on the sufficiency thereof. Notice of the filing of
18such petition and of such date shall be given in writing to the
19District and the County Clerk at least 7 days before the date
20of such hearing.
21    If such petition is found sufficient, the court shall
22enter an order to submit that proposition at the next
23election, in accordance with general election law.
24    The form of the petition shall be in substantially the
25following form: To the Circuit Court of the County of (name of
26county):

 

 

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1        We, the undersigned electors of the (name of transit
2    district), respectfully petition your honor to submit to a
3    vote of the electors of (name of transit district) the
4    following proposition:
5        Shall the tax rates for the Metro East Mass Transit
6    District Retailers' Occupation Tax, the Metro East Mass
7    Transit District Service Occupation Tax, and the Metro
8    East Mass Transit District Use Tax be increased from 0.25%
9    to 0.75%?
10        Name                Address, with Street and Number.
11..............................................................
12..............................................................
13    (C) The votes shall be recorded as "YES" or "NO". If a
14majority of all votes cast on the proposition are for the
15increase in the tax rates, the Metro East Mass Transit
16District shall begin imposing the increased rates in the
17District, and the Department of Revenue shall begin collecting
18the increased amounts, as provided under this Section. An
19ordinance imposing or discontinuing a tax hereunder or
20effecting a change in the rate thereof shall be adopted and a
21certified copy thereof filed with the Department on or before
22the first day of October, whereupon the Department shall
23proceed to administer and enforce this Section as of the first
24day of January next following the adoption and filing, or on or
25before the first day of April, whereupon the Department shall
26proceed to administer and enforce this Section as of the first

 

 

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1day of July next following the adoption and filing.
2    (D) If the voters have approved a referendum under this
3subsection, before November 1, 1994, to increase the tax rate
4under this subsection, the Metro East Mass Transit District
5Board of Trustees may adopt by a majority vote an ordinance at
6any time before January 1, 1995 that excludes from the rate
7increase tangible personal property that is titled or
8registered with an agency of this State's government. The
9ordinance excluding titled or registered tangible personal
10property from the rate increase must be filed with the
11Department at least 15 days before its effective date. At any
12time after adopting an ordinance excluding from the rate
13increase tangible personal property that is titled or
14registered with an agency of this State's government, the
15Metro East Mass Transit District Board of Trustees may adopt
16an ordinance applying the rate increase to that tangible
17personal property. The ordinance shall be adopted, and a
18certified copy of that ordinance shall be filed with the
19Department, on or before October 1, whereupon the Department
20shall proceed to administer and enforce the rate increase
21against tangible personal property titled or registered with
22an agency of this State's government as of the following
23January 1. After December 31, 1995, any reimposed rate
24increase in effect under this subsection shall no longer apply
25to tangible personal property titled or registered with an
26agency of this State's government. Beginning January 1, 1996,

 

 

10300HB4951sam002- 801 -LRB103 38094 HLH 74177 a

1the Board of Trustees of any Metro East Mass Transit District
2may never reimpose a previously excluded tax rate increase on
3tangible personal property titled or registered with an agency
4of this State's government. After July 1, 2004, if the voters
5have approved a referendum under this subsection to increase
6the tax rate under this subsection, the Metro East Mass
7Transit District Board of Trustees may adopt by a majority
8vote an ordinance that excludes from the rate increase
9tangible personal property that is titled or registered with
10an agency of this State's government. The ordinance excluding
11titled or registered tangible personal property from the rate
12increase shall be adopted, and a certified copy of that
13ordinance shall be filed with the Department on or before
14October 1, whereupon the Department shall administer and
15enforce this exclusion from the rate increase as of the
16following January 1, or on or before April 1, whereupon the
17Department shall administer and enforce this exclusion from
18the rate increase as of the following July 1. The Board of
19Trustees of any Metro East Mass Transit District may never
20reimpose a previously excluded tax rate increase on tangible
21personal property titled or registered with an agency of this
22State's government.
23    (d-6) If the Board of Trustees of any Metro East Mass
24Transit District has imposed a rate increase under subsection
25(d-5) and filed an ordinance with the Department of Revenue
26excluding titled property from the higher rate, then that

 

 

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1Board may, by ordinance adopted with the concurrence of
2two-thirds of the then trustees, impose throughout the
3District a fee. The fee on the excluded property shall not
4exceed $20 per retail transaction or an amount equal to the
5amount of tax excluded, whichever is less, on tangible
6personal property that is titled or registered with an agency
7of this State's government. Beginning July 1, 2004, the fee
8shall apply only to titled property that is subject to either
9the Metro East Mass Transit District Retailers' Occupation Tax
10or the Metro East Mass Transit District Service Occupation
11Tax. No fee shall be imposed or collected under this
12subsection on the sale of a motor vehicle in this State to a
13resident of another state if that motor vehicle will not be
14titled in this State.
15    (d-7) Until June 30, 2004, if a fee has been imposed under
16subsection (d-6), a fee shall also be imposed upon the
17privilege of using, in the district, any item of tangible
18personal property that is titled or registered with any agency
19of this State's government, in an amount equal to the amount of
20the fee imposed under subsection (d-6).
21    (d-7.1) Beginning July 1, 2004, any fee imposed by the
22Board of Trustees of any Metro East Mass Transit District
23under subsection (d-6) and all civil penalties that may be
24assessed as an incident of the fees shall be collected and
25enforced by the State Department of Revenue. Reference to
26"taxes" in this Section shall be construed to apply to the

 

 

10300HB4951sam002- 803 -LRB103 38094 HLH 74177 a

1administration, payment, and remittance of all fees under this
2Section. For purposes of any fee imposed under subsection
3(d-6), 4% of the fee, penalty, and interest received by the
4Department in the first 12 months that the fee is collected and
5enforced by the Department and 2% of the fee, penalty, and
6interest following the first 12 months (except the amount
7collected on aviation fuel sold on or after December 1, 2019)
8shall be deposited into the Tax Compliance and Administration
9Fund and shall be used by the Department, subject to
10appropriation, to cover the costs of the Department. No
11retailers' discount shall apply to any fee imposed under
12subsection (d-6).
13    (d-8) No item of titled property shall be subject to both
14the higher rate approved by referendum, as authorized under
15subsection (d-5), and any fee imposed under subsection (d-6)
16or (d-7).
17    (d-9) (Blank).
18    (d-10) (Blank).
19    (e) A certificate of registration issued by the State
20Department of Revenue to a retailer under the Retailers'
21Occupation Tax Act or under the Service Occupation Tax Act
22shall permit the registrant to engage in a business that is
23taxed under the tax imposed under paragraphs (b), (c) or (d) of
24this Section and no additional registration shall be required
25under the tax. A certificate issued under the Use Tax Act or
26the Service Use Tax Act shall be applicable with regard to any

 

 

10300HB4951sam002- 804 -LRB103 38094 HLH 74177 a

1tax imposed under paragraph (c) of this Section.
2    (f) (Blank).
3    (g) Any ordinance imposing or discontinuing any tax under
4this Section shall be adopted and a certified copy thereof
5filed with the Department on or before June 1, whereupon the
6Department of Revenue shall proceed to administer and enforce
7this Section on behalf of the Metro East Mass Transit District
8as of September 1 next following such adoption and filing.
9Beginning January 1, 1992, an ordinance or resolution imposing
10or discontinuing the tax hereunder shall be adopted and a
11certified copy thereof filed with the Department on or before
12the first day of July, whereupon the Department shall proceed
13to administer and enforce this Section as of the first day of
14October next following such adoption and filing. Beginning
15January 1, 1993, except as provided in subsection (d-5) of
16this Section, an ordinance or resolution imposing or
17discontinuing the tax hereunder shall be adopted and a
18certified copy thereof filed with the Department on or before
19the first day of October, whereupon the Department shall
20proceed to administer and enforce this Section as of the first
21day of January next following such adoption and filing, or,
22beginning January 1, 2004, on or before the first day of April,
23whereupon the Department shall proceed to administer and
24enforce this Section as of the first day of July next following
25the adoption and filing.
26    (h) Except as provided in subsection (d-7.1), the State

 

 

10300HB4951sam002- 805 -LRB103 38094 HLH 74177 a

1Department of Revenue shall, upon collecting any taxes as
2provided in this Section, pay the taxes over to the State
3Treasurer as trustee for the District. The taxes shall be held
4in a trust fund outside the State Treasury. If an
5airport-related purpose has been certified, taxes and
6penalties collected in St. Clair County on aviation fuel sold
7on or after December 1, 2019 from the 0.50% of the 0.75% rate
8shall be immediately paid over by the Department to the State
9Treasurer, ex officio, as trustee, for deposit into the Local
10Government Aviation Trust Fund. The Department shall only pay
11moneys into the Local Government Aviation Trust Fund under
12this Act for so long as the revenue use requirements of 49
13U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
14District.
15    As soon as possible after the first day of each month,
16beginning January 1, 2011, upon certification of the
17Department of Revenue, the Comptroller shall order
18transferred, and the Treasurer shall transfer, to the STAR
19Bonds Revenue Fund the local sales tax increment, as defined
20in the Innovation Development and Economy Act, collected under
21this Section during the second preceding calendar month for
22sales within a STAR bond district. The Department shall make
23this certification only if the local mass transit district
24imposes a tax on real property as provided in the definition of
25"local sales taxes" under the Innovation Development and
26Economy Act.

 

 

10300HB4951sam002- 806 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 807 -LRB103 38094 HLH 74177 a

1the Tax Compliance and Administration Fund, the Comptroller
2shall cause an order to be drawn for payment for the amount in
3accordance with the direction in the certification.
4(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
5101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 
6    Section 75-60. The Regional Transportation Authority Act
7is amended by changing Section 4.03 as follows:
 
8    (70 ILCS 3615/4.03)  (from Ch. 111 2/3, par. 704.03)
9    Sec. 4.03. Taxes.
10    (a) In order to carry out any of the powers or purposes of
11the Authority, the Board may by ordinance adopted with the
12concurrence of 12 of the then Directors, impose throughout the
13metropolitan region any or all of the taxes provided in this
14Section. Except as otherwise provided in this Act, taxes
15imposed under this Section and civil penalties imposed
16incident thereto shall be collected and enforced by the State
17Department of Revenue. The Department shall have the power to
18administer and enforce the taxes and to determine all rights
19for refunds for erroneous payments of the taxes. Nothing in
20Public Act 95-708 is intended to invalidate any taxes
21currently imposed by the Authority. The increased vote
22requirements to impose a tax shall only apply to actions taken
23after January 1, 2008 (the effective date of Public Act
2495-708).

 

 

10300HB4951sam002- 808 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 809 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 810 -LRB103 38094 HLH 74177 a

1Retailers' Occupation Tax Act (or at the 0% rate imposed under
2this amendatory Act of the 102nd General Assembly), and 1% of
3the gross receipts from other taxable sales made in the course
4of that business. In DuPage, Kane, Lake, McHenry, and Will
5counties, the tax rate shall be 0.75% of the gross receipts
6from all taxable sales made in the course of that business. The
7rate of tax imposed in DuPage, Kane, Lake, McHenry, and Will
8counties under this Section on sales of aviation fuel on or
9after December 1, 2019 shall, however, be 0.25% unless the
10Regional Transportation Authority in DuPage, Kane, Lake,
11McHenry, and Will counties has an "airport-related purpose"
12and the additional 0.50% of the 0.75% tax on aviation fuel is
13expended for airport-related purposes. If there is no
14airport-related purpose to which aviation fuel tax revenue is
15dedicated, then aviation fuel is excluded from the additional
160.50% of the 0.75% tax. The tax imposed under this Section and
17all civil penalties that may be assessed as an incident
18thereof shall be collected and enforced by the State
19Department of Revenue. The Department shall have full power to
20administer and enforce this Section; to collect all taxes and
21penalties so collected in the manner hereinafter provided; and
22to determine all rights to credit memoranda arising on account
23of the erroneous payment of tax or penalty hereunder. In the
24administration of, and compliance with this Section, the
25Department and persons who are subject to this Section shall
26have the same rights, remedies, privileges, immunities,

 

 

10300HB4951sam002- 811 -LRB103 38094 HLH 74177 a

1powers, and duties, and be subject to the same conditions,
2restrictions, limitations, penalties, exclusions, exemptions,
3and definitions of terms, and employ the same modes of
4procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
51e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
6therein other than the State rate of tax), 2c, 3 (except as to
7the disposition of taxes and penalties collected, and except
8that the retailer's discount is not allowed for taxes paid on
9aviation fuel that are subject to the revenue use requirements
10of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
115d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
1210, 11, 12, and 13 of the Retailers' Occupation Tax Act and
13Section 3-7 of the Uniform Penalty and Interest Act, as fully
14as if those provisions were set forth herein.
15    The Board and DuPage, Kane, Lake, McHenry, and Will
16counties must comply with the certification requirements for
17airport-related purposes under Section 2-22 of the Retailers'
18Occupation Tax Act. For purposes of this Section,
19"airport-related purposes" has the meaning ascribed in Section
206z-20.2 of the State Finance Act. This exclusion for aviation
21fuel only applies for so long as the revenue use requirements
22of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
23Authority.
24    Persons subject to any tax imposed under the authority
25granted in this Section may reimburse themselves for their
26seller's tax liability hereunder by separately stating the tax

 

 

10300HB4951sam002- 812 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 813 -LRB103 38094 HLH 74177 a

1another state if that motor vehicle will not be titled in this
2State.
3    Nothing in this Section shall be construed to authorize
4the Regional Transportation Authority to impose a tax upon the
5privilege of engaging in any business that under the
6Constitution of the United States may not be made the subject
7of taxation by this State.
8    (f) If a tax has been imposed under paragraph (e), a
9Regional Transportation Authority Service Occupation Tax shall
10also be imposed upon all persons engaged, in the metropolitan
11region in the business of making sales of service, who as an
12incident to making the sales of service, transfer tangible
13personal property within the metropolitan region, either in
14the form of tangible personal property or in the form of real
15estate as an incident to a sale of service. In Cook County, the
16tax rate shall be: (1) 1.25% of the serviceman's cost price of
17food prepared for immediate consumption and transferred
18incident to a sale of service subject to the service
19occupation tax by an entity licensed under the Hospital
20Licensing Act, the Nursing Home Care Act, the Specialized
21Mental Health Rehabilitation Act of 2013, the ID/DD Community
22Care Act, or the MC/DD Act that is located in the metropolitan
23region; (2) 1.25% of the selling price of tangible personal
24property taxed at the 1% rate under the Service Occupation Tax
25Act (or at the 0% rate imposed under this amendatory Act of the
26102nd General Assembly); and (3) 1% of the selling price from

 

 

10300HB4951sam002- 814 -LRB103 38094 HLH 74177 a

1other taxable sales of tangible personal property transferred.
2In DuPage, Kane, Lake, McHenry, and Will counties, the rate
3shall be 0.75% of the selling price of all tangible personal
4property transferred. The rate of tax imposed in DuPage, Kane,
5Lake, McHenry, and Will counties under this Section on sales
6of aviation fuel on or after December 1, 2019 shall, however,
7be 0.25% unless the Regional Transportation Authority in
8DuPage, Kane, Lake, McHenry, and Will counties has an
9"airport-related purpose" and the additional 0.50% of the
100.75% tax on aviation fuel is expended for airport-related
11purposes. If there is no airport-related purpose to which
12aviation fuel tax revenue is dedicated, then aviation fuel is
13excluded from the additional 0.5% of the 0.75% tax.
14    The Board and DuPage, Kane, Lake, McHenry, and Will
15counties must comply with the certification requirements for
16airport-related purposes under Section 2-22 of the Retailers'
17Occupation Tax Act. For purposes of this Section,
18"airport-related purposes" has the meaning ascribed in Section
196z-20.2 of the State Finance Act. This exclusion for aviation
20fuel only applies for so long as the revenue use requirements
21of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
22Authority.
23    The tax imposed under this paragraph and all civil
24penalties that may be assessed as an incident thereof shall be
25collected and enforced by the State Department of Revenue. The
26Department shall have full power to administer and enforce

 

 

10300HB4951sam002- 815 -LRB103 38094 HLH 74177 a

1this paragraph; to collect all taxes and penalties due
2hereunder; to dispose of taxes and penalties collected in the
3manner hereinafter provided; and to determine all rights to
4credit memoranda arising on account of the erroneous payment
5of tax or penalty hereunder. In the administration of and
6compliance with this paragraph, the Department and persons who
7are subject to this paragraph shall have the same rights,
8remedies, privileges, immunities, powers, and duties, and be
9subject to the same conditions, restrictions, limitations,
10penalties, exclusions, exemptions, and definitions of terms,
11and employ the same modes of procedure, as are prescribed in
12Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
13provisions therein other than the State rate of tax), 4
14(except that the reference to the State shall be to the
15Authority), 5, 7, 8 (except that the jurisdiction to which the
16tax shall be a debt to the extent indicated in that Section 8
17shall be the Authority), 9 (except as to the disposition of
18taxes and penalties collected, and except that the returned
19merchandise credit for this tax may not be taken against any
20State tax, and except that the retailer's discount is not
21allowed for taxes paid on aviation fuel that are subject to the
22revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2347133), 10, 11, 12 (except the reference therein to Section 2b
24of the Retailers' Occupation Tax Act), 13 (except that any
25reference to the State shall mean the Authority), the first
26paragraph of Section 15, 16, 17, 18, 19, and 20 of the Service

 

 

10300HB4951sam002- 816 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 817 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 818 -LRB103 38094 HLH 74177 a

1determine all rights to credit memoranda or refunds arising on
2account of the erroneous payment of tax, penalty, or interest
3hereunder. In the administration of and compliance with this
4paragraph, the Department and persons who are subject to this
5paragraph shall have the same rights, remedies, privileges,
6immunities, powers, and duties, and be subject to the same
7conditions, restrictions, limitations, penalties, exclusions,
8exemptions, and definitions of terms and employ the same modes
9of procedure, as are prescribed in Sections 2 (except the
10definition of "retailer maintaining a place of business in
11this State"), 3 through 3-80 (except provisions pertaining to
12the State rate of tax, and except provisions concerning
13collection or refunding of the tax by retailers), 4, 11, 12,
1412a, 14, 15, 19 (except the portions pertaining to claims by
15retailers and except the last paragraph concerning refunds),
1620, 21, and 22 of the Use Tax Act, and are not inconsistent
17with this paragraph, as fully as if those provisions were set
18forth herein.
19    Whenever the Department determines that a refund should be
20made under this paragraph to a claimant instead of issuing a
21credit memorandum, the Department shall notify the State
22Comptroller, who shall cause the order to be drawn for the
23amount specified, and to the person named in the notification
24from the Department. The refund shall be paid by the State
25Treasurer out of the Regional Transportation Authority tax
26fund established under paragraph (n) of this Section.

 

 

10300HB4951sam002- 819 -LRB103 38094 HLH 74177 a

1    (g-5) If, on January 1, 2025, a unit of local government
2has in effect a tax under subsections (e), (f), and (g), or if,
3after January 1, 2025, a unit of local government imposes a tax
4under subsections (e), (f), and (g), then that tax applies to
5leases of tangible personal property in effect, entered into,
6or renewed on or after that date in the same manner as the tax
7under this Section and in accordance with the changes made by
8this amendatory Act of the 103rd General Assembly.
9    (h) The Authority may impose a replacement vehicle tax of
10$50 on any passenger car as defined in Section 1-157 of the
11Illinois Vehicle Code purchased within the metropolitan region
12by or on behalf of an insurance company to replace a passenger
13car of an insured person in settlement of a total loss claim.
14The tax imposed may not become effective before the first day
15of the month following the passage of the ordinance imposing
16the tax and receipt of a certified copy of the ordinance by the
17Department of Revenue. The Department of Revenue shall collect
18the tax for the Authority in accordance with Sections 3-2002
19and 3-2003 of the Illinois Vehicle Code.
20    The Department shall immediately pay over to the State
21Treasurer, ex officio, as trustee, all taxes collected
22hereunder.
23    As soon as possible after the first day of each month,
24beginning January 1, 2011, upon certification of the
25Department of Revenue, the Comptroller shall order
26transferred, and the Treasurer shall transfer, to the STAR

 

 

10300HB4951sam002- 820 -LRB103 38094 HLH 74177 a

1Bonds Revenue Fund the local sales tax increment, as defined
2in the Innovation Development and Economy Act, collected under
3this Section during the second preceding calendar month for
4sales within a STAR bond district.
5    After the monthly transfer to the STAR Bonds Revenue Fund,
6on or before the 25th day of each calendar month, the
7Department shall prepare and certify to the Comptroller the
8disbursement of stated sums of money to the Authority. The
9amount to be paid to the Authority shall be the amount
10collected hereunder during the second preceding calendar month
11by the Department, less any amount determined by the
12Department to be necessary for the payment of refunds, and
13less any amounts that are transferred to the STAR Bonds
14Revenue Fund. Within 10 days after receipt by the Comptroller
15of the disbursement certification to the Authority provided
16for in this Section to be given to the Comptroller by the
17Department, the Comptroller shall cause the orders to be drawn
18for that amount in accordance with the directions contained in
19the certification.
20    (i) The Board may not impose any other taxes except as it
21may from time to time be authorized by law to impose.
22    (j) A certificate of registration issued by the State
23Department of Revenue to a retailer under the Retailers'
24Occupation Tax Act or under the Service Occupation Tax Act
25shall permit the registrant to engage in a business that is
26taxed under the tax imposed under paragraphs (b), (e), (f) or

 

 

10300HB4951sam002- 821 -LRB103 38094 HLH 74177 a

1(g) of this Section and no additional registration shall be
2required under the tax. A certificate issued under the Use Tax
3Act or the Service Use Tax Act shall be applicable with regard
4to any tax imposed under paragraph (c) of this Section.
5    (k) The provisions of any tax imposed under paragraph (c)
6of this Section shall conform as closely as may be practicable
7to the provisions of the Use Tax Act, including without
8limitation conformity as to penalties with respect to the tax
9imposed and as to the powers of the State Department of Revenue
10to promulgate and enforce rules and regulations relating to
11the administration and enforcement of the provisions of the
12tax imposed. The taxes shall be imposed only on use within the
13metropolitan region and at rates as provided in the paragraph.
14    (l) The Board in imposing any tax as provided in
15paragraphs (b) and (c) of this Section, shall, after seeking
16the advice of the State Department of Revenue, provide means
17for retailers, users or purchasers of motor fuel for purposes
18other than those with regard to which the taxes may be imposed
19as provided in those paragraphs to receive refunds of taxes
20improperly paid, which provisions may be at variance with the
21refund provisions as applicable under the Municipal Retailers
22Occupation Tax Act. The State Department of Revenue may
23provide for certificates of registration for users or
24purchasers of motor fuel for purposes other than those with
25regard to which taxes may be imposed as provided in paragraphs
26(b) and (c) of this Section to facilitate the reporting and

 

 

10300HB4951sam002- 822 -LRB103 38094 HLH 74177 a

1nontaxability of the exempt sales or uses.
2    (m) Any ordinance imposing or discontinuing any tax under
3this Section shall be adopted and a certified copy thereof
4filed with the Department on or before June 1, whereupon the
5Department of Revenue shall proceed to administer and enforce
6this Section on behalf of the Regional Transportation
7Authority as of September 1 next following such adoption and
8filing. Beginning January 1, 1992, an ordinance or resolution
9imposing or discontinuing the tax hereunder shall be adopted
10and a certified copy thereof filed with the Department on or
11before the first day of July, whereupon the Department shall
12proceed to administer and enforce this Section as of the first
13day of October next following such adoption and filing.
14Beginning January 1, 1993, an ordinance or resolution
15imposing, increasing, decreasing, or discontinuing the tax
16hereunder shall be adopted and a certified copy thereof filed
17with the Department, whereupon the Department shall proceed to
18administer and enforce this Section as of the first day of the
19first month to occur not less than 60 days following such
20adoption and filing. Any ordinance or resolution of the
21Authority imposing a tax under this Section and in effect on
22August 1, 2007 shall remain in full force and effect and shall
23be administered by the Department of Revenue under the terms
24and conditions and rates of tax established by such ordinance
25or resolution until the Department begins administering and
26enforcing an increased tax under this Section as authorized by

 

 

10300HB4951sam002- 823 -LRB103 38094 HLH 74177 a

1Public Act 95-708. The tax rates authorized by Public Act
295-708 are effective only if imposed by ordinance of the
3Authority.
4    (n) Except as otherwise provided in this subsection (n),
5the State Department of Revenue shall, upon collecting any
6taxes as provided in this Section, pay the taxes over to the
7State Treasurer as trustee for the Authority. The taxes shall
8be held in a trust fund outside the State Treasury. If an
9airport-related purpose has been certified, taxes and
10penalties collected in DuPage, Kane, Lake, McHenry and Will
11counties on aviation fuel sold on or after December 1, 2019
12from the 0.50% of the 0.75% rate shall be immediately paid over
13by the Department to the State Treasurer, ex officio, as
14trustee, for deposit into the Local Government Aviation Trust
15Fund. The Department shall only pay moneys into the Local
16Government Aviation Trust Fund under this Act for so long as
17the revenue use requirements of 49 U.S.C. 47107(b) and 49
18U.S.C. 47133 are binding on the Authority. On or before the
1925th day of each calendar month, the State Department of
20Revenue shall prepare and certify to the Comptroller of the
21State of Illinois and to the Authority (i) the amount of taxes
22collected in each county other than Cook County in the
23metropolitan region, (not including, if an airport-related
24purpose has been certified, the taxes and penalties collected
25from the 0.50% of the 0.75% rate on aviation fuel sold on or
26after December 1, 2019 that are deposited into the Local

 

 

10300HB4951sam002- 824 -LRB103 38094 HLH 74177 a

1Government Aviation Trust Fund) (ii) the amount of taxes
2collected within the City of Chicago, and (iii) the amount
3collected in that portion of Cook County outside of Chicago,
4each amount less the amount necessary for the payment of
5refunds to taxpayers located in those areas described in items
6(i), (ii), and (iii), and less 1.5% of the remainder, which
7shall be transferred from the trust fund into the Tax
8Compliance and Administration Fund. The Department, at the
9time of each monthly disbursement to the Authority, shall
10prepare and certify to the State Comptroller the amount to be
11transferred into the Tax Compliance and Administration Fund
12under this subsection. Within 10 days after receipt by the
13Comptroller of the certification of the amounts, the
14Comptroller shall cause an order to be drawn for the transfer
15of the amount certified into the Tax Compliance and
16Administration Fund and the payment of two-thirds of the
17amounts certified in item (i) of this subsection to the
18Authority and one-third of the amounts certified in item (i)
19of this subsection to the respective counties other than Cook
20County and the amount certified in items (ii) and (iii) of this
21subsection to the Authority.
22    In addition to the disbursement required by the preceding
23paragraph, an allocation shall be made in July 1991 and each
24year thereafter to the Regional Transportation Authority. The
25allocation shall be made in an amount equal to the average
26monthly distribution during the preceding calendar year

 

 

10300HB4951sam002- 825 -LRB103 38094 HLH 74177 a

1(excluding the 2 months of lowest receipts) and the allocation
2shall include the amount of average monthly distribution from
3the Regional Transportation Authority Occupation and Use Tax
4Replacement Fund. The distribution made in July 1992 and each
5year thereafter under this paragraph and the preceding
6paragraph shall be reduced by the amount allocated and
7disbursed under this paragraph in the preceding calendar year.
8The Department of Revenue shall prepare and certify to the
9Comptroller for disbursement the allocations made in
10accordance with this paragraph.
11    (o) Failure to adopt a budget ordinance or otherwise to
12comply with Section 4.01 of this Act or to adopt a Five-year
13Capital Program or otherwise to comply with paragraph (b) of
14Section 2.01 of this Act shall not affect the validity of any
15tax imposed by the Authority otherwise in conformity with law.
16    (p) At no time shall a public transportation tax or motor
17vehicle parking tax authorized under paragraphs (b), (c), and
18(d) of this Section be in effect at the same time as any
19retailers' occupation, use or service occupation tax
20authorized under paragraphs (e), (f), and (g) of this Section
21is in effect.
22    Any taxes imposed under the authority provided in
23paragraphs (b), (c), and (d) shall remain in effect only until
24the time as any tax authorized by paragraph (e), (f), or (g) of
25this Section are imposed and becomes effective. Once any tax
26authorized by paragraph (e), (f), or (g) is imposed the Board

 

 

10300HB4951sam002- 826 -LRB103 38094 HLH 74177 a

1may not reimpose taxes as authorized in paragraphs (b), (c),
2and (d) of the Section unless any tax authorized by paragraph
3(e), (f), or (g) of this Section becomes ineffective by means
4other than an ordinance of the Board.
5    (q) Any existing rights, remedies and obligations
6(including enforcement by the Regional Transportation
7Authority) arising under any tax imposed under paragraph (b),
8(c), or (d) of this Section shall not be affected by the
9imposition of a tax under paragraph (e), (f), or (g) of this
10Section.
11(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
12101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
13
ARTICLE 80.

 
14    Section 80-5. The Cigarette Tax Act is amended by changing
15Sections 4b, 9, 9e, and 9f as follows:
 
16    (35 ILCS 130/4b)  (from Ch. 120, par. 453.4b)
17    Sec. 4b. (a) The Department may, in its discretion, upon
18application, issue permits authorizing the payment of the tax
19herein imposed by out-of-State cigarette manufacturers who are
20not required to be licensed as distributors of cigarettes in
21this State, but who elect to qualify under this Act as
22distributors of cigarettes in this State, and who, to the
23satisfaction of the Department, furnish adequate security to

 

 

10300HB4951sam002- 827 -LRB103 38094 HLH 74177 a

1insure payment of the tax, provided that any such permit shall
2extend only to cigarettes which such permittee manufacturer
3places in original packages that are contained inside a sealed
4transparent wrapper. Such permits shall be issued without
5charge in such form as the Department may prescribe and shall
6not be transferable or assignable.
7    The following are ineligible to receive a distributor's
8permit under this subsection:
9        (1) a person who is not of good character and
10    reputation in the community in which he resides; the
11    Department may consider past conviction of a felony but
12    the conviction shall not operate as an absolute bar to
13    receiving a permit;
14        (2) a person who has been convicted of a felony under
15    any Federal or State law, if the Department, after
16    investigation and a hearing and consideration of
17    mitigating factors and evidence of rehabilitation
18    contained in the applicant's record, including those in
19    Section 4i of this Act, determines that such person has
20    not been sufficiently rehabilitated to warrant the public
21    trust and the conviction will impair the ability of the
22    person to engage in the position for which a permit is
23    sought;
24        (3) a corporation, if any officer, manager or director
25    thereof, or any stockholder or stockholders owning in the
26    aggregate more than 5% of the stock of such corporation,

 

 

10300HB4951sam002- 828 -LRB103 38094 HLH 74177 a

1    would not be eligible to receive a permit under this Act
2    for any reason.
3    With respect to cigarettes which come within the scope of
4such a permit and which any such permittee delivers or causes
5to be delivered in Illinois to licensed distributors, such
6permittee shall remit the tax imposed by this Act at the times
7provided for in Section 3 of this Act. Each such remittance
8shall be accompanied by a return filed with the Department on a
9form to be prescribed and furnished by the Department and
10shall disclose such information as the Department may lawfully
11require. Information that the Department may lawfully require
12includes information related to the uniform regulation and
13taxation of cigarettes. The Department may promulgate rules to
14require that the permittee's return be accompanied by
15appropriate computer-generated magnetic media supporting
16schedule data in the format prescribed by the Department,
17unless, as provided by rule, the Department grants an
18exception upon petition of the permittee. Each such return
19shall be accompanied by a copy of each invoice rendered by the
20permittee to any licensed distributor to whom the permittee
21delivered cigarettes of the type covered by the permit (or
22caused cigarettes of the type covered by the permit to be
23delivered) in Illinois during the period covered by such
24return.
25    Such permit may be suspended, canceled or revoked when, at
26any time, the Department considers that the security given is

 

 

10300HB4951sam002- 829 -LRB103 38094 HLH 74177 a

1inadequate, or that such tax can more effectively be collected
2from distributors located in this State, or whenever the
3permittee violates any provision of this Act or any lawful
4rule or regulation issued by the Department pursuant to this
5Act or is determined to be ineligible for a distributor's
6permit under this Act as provided in this Section, whenever
7the permittee shall notify the Department in writing of his
8desire to have the permit canceled. The Department shall have
9the power, in its discretion, to issue a new permit after such
10suspension, cancellation or revocation, except when the person
11who would receive the permit is ineligible to receive a
12distributor's permit under this Act.
13    All permits issued by the Department under this Act shall
14be valid for not to exceed one year after issuance unless
15sooner revoked, canceled or suspended as in this Act provided.
16    (b) Out-of-state cigarette manufacturers who are not
17required to be licensed as distributors of cigarettes in this
18State and who do not elect to obtain approval under subsection
194b(a) to pay the tax imposed by this Act, but who elect to
20qualify under this Act as distributors of cigarettes in this
21State for purposes of shipping and delivering unstamped
22original packages of cigarettes into this State to licensed
23distributors, shall obtain a permit from the Department. These
24permits shall be issued without charge in such form as the
25Department may prescribe and shall not be transferable or
26assignable.

 

 

10300HB4951sam002- 830 -LRB103 38094 HLH 74177 a

1    The following are ineligible to receive a distributor's
2permit under this subsection:
3        (1) a person who is not of good character and
4    reputation in the community in which he or she resides;
5    the Department may consider past conviction of a felony
6    but the conviction shall not operate as an absolute bar to
7    receiving a permit;
8        (2) a person who has been convicted of a felony under
9    any federal or State law, if the Department, after
10    investigation and a hearing and consideration of
11    mitigating factors and evidence of rehabilitation
12    contained in the applicant's record, including those set
13    forth in Section 4i of this Act, determines that the
14    person has not been sufficiently rehabilitated to warrant
15    the public trust and the conviction will impair the
16    ability of the person to engage in the position for which a
17    permit is sought; and
18        (3) a corporation, if any officer, manager, or
19    director thereof, or any stockholder or stockholders
20    owning in the aggregate more than 5% of the stock of the
21    corporation, would not be eligible to receive a permit
22    under this Act for any reason.
23    With respect to original packages of cigarettes that such
24permittee delivers or causes to be delivered in Illinois and
25distributes to the public for promotional purposes without
26consideration, the permittee shall pay the tax imposed by this

 

 

10300HB4951sam002- 831 -LRB103 38094 HLH 74177 a

1Act by remitting the amount thereof to the Department by the
25th day of each month covering cigarettes shipped or otherwise
3delivered in Illinois for those purposes during the preceding
4calendar month. The permittee, before delivering those
5cigarettes or causing those cigarettes to be delivered in this
6State, shall evidence his or her obligation to remit the taxes
7due with respect to those cigarettes by imprinting language to
8be prescribed by the Department on each original package of
9cigarettes, in such place thereon and in such manner also to be
10prescribed by the Department. The imprinted language shall
11acknowledge the permittee's payment of or liability for the
12tax imposed by this Act with respect to the distribution of
13those cigarettes.
14    With respect to cigarettes that the permittee delivers or
15causes to be delivered in Illinois to Illinois licensed
16distributors or distributed to the public for promotional
17purposes, the permittee shall, by the 5th day of each month,
18file with the Department, a report covering cigarettes shipped
19or otherwise delivered in Illinois to licensed distributors or
20distributed to the public for promotional purposes during the
21preceding calendar month on a form to be prescribed and
22furnished by the Department and shall disclose such other
23information as the Department may lawfully require.
24Information that the Department may lawfully require includes
25information related to the uniform regulation and taxation of
26cigarettes. The Department may promulgate rules to require

 

 

10300HB4951sam002- 832 -LRB103 38094 HLH 74177 a

1that the permittee's report be accompanied by appropriate
2computer-generated magnetic media supporting schedule data in
3the format prescribed by the Department, unless, as provided
4by rule, the Department grants an exception upon petition of
5the permittee. Each such report shall be accompanied by a copy
6of each invoice rendered by the permittee to any purchaser to
7whom the permittee delivered cigarettes of the type covered by
8the permit (or caused cigarettes of the type covered by the
9permit to be delivered) in Illinois during the period covered
10by such report.
11    Such permit may be suspended, canceled, or revoked
12whenever the permittee violates any provision of this Act or
13any lawful rule or regulation issued by the Department
14pursuant to this Act, is determined to be ineligible for a
15distributor's permit under this Act as provided in this
16Section, or notifies the Department in writing of his or her
17desire to have the permit canceled. The Department shall have
18the power, in its discretion, to issue a new permit after such
19suspension, cancellation, or revocation, except when the
20person who would receive the permit is ineligible to receive a
21distributor's permit under this Act.
22    All permits issued by the Department under this Act shall
23be valid for a period not to exceed one year after issuance
24unless sooner revoked, canceled, or suspended as provided in
25this Act.
26(Source: P.A. 100-286, eff. 1-1-18.)
 

 

 

10300HB4951sam002- 833 -LRB103 38094 HLH 74177 a

1    (35 ILCS 130/9)  (from Ch. 120, par. 453.9)
2    Sec. 9. Returns; remittance. Every distributor who is
3required to procure a license under this Act, but who is not a
4manufacturer of cigarettes in original packages which are
5contained in a sealed transparent wrapper, shall, on or before
6the 15th day of each calendar month, file a return with the
7Department, showing the quantity of cigarettes manufactured
8during the preceding calendar month, the quantity of
9cigarettes brought into this State or caused to be brought
10into this State from outside this State during the preceding
11calendar month without authorized evidence on the original
12packages of such cigarettes underneath the sealed transparent
13wrapper thereof that the tax liability imposed by this Act has
14been assumed by the out-of-State seller of such cigarettes,
15the quantity of cigarettes purchased tax-paid during the
16preceding calendar month either within or outside this State,
17the quantity of cigarettes sold by manufacturer
18representatives on behalf of the distributor, the quantity of
19cigarettes sold to manufacturer representatives, and the
20quantity of cigarettes sold or otherwise disposed of during
21the preceding calendar month. Such return shall be filed upon
22forms furnished and prescribed by the Department and shall
23contain such other information as the Department may
24reasonably require. Information that the Department may
25reasonably require includes information related to the uniform

 

 

10300HB4951sam002- 834 -LRB103 38094 HLH 74177 a

1regulation and taxation of cigarettes. The Department may
2promulgate rules to require that the distributor's return be
3accompanied by appropriate computer-generated magnetic media
4supporting schedule data in the format required by the
5Department, unless, as provided by rule, the Department grants
6an exception upon petition of a distributor.
7    Illinois manufacturers of cigarettes in original packages
8which are contained inside a sealed transparent wrapper shall
9file a return by the 5th day of each month covering the
10preceding calendar month. Each such return shall be
11accompanied by the appropriate remittance for tax as provided
12in Section 3 of this Act. Each such return shall show the
13quantity of such cigarettes manufactured during the period
14covered by the return, the quantity of cigarettes sold or
15otherwise disposed of during the period covered by the return
16and such other information as the Department may lawfully
17require. Information that the Department may lawfully require
18includes information related to the uniform regulation and
19taxation of cigarettes. Such returns shall be filed on forms
20prescribed and furnished by the Department. Each such return
21shall be accompanied by a copy of each invoice rendered by such
22manufacturer to any purchaser to whom such manufacturer
23delivered cigarettes (or caused cigarettes to be delivered)
24during the period covered by the return. The Department may
25promulgate rules to require that the manufacturer's return be
26accompanied by appropriate computer-generated magnetic media

 

 

10300HB4951sam002- 835 -LRB103 38094 HLH 74177 a

1supporting schedule data in the format required by the
2Department, unless, as provided by rule, the Department grants
3an exception upon petition of a manufacturer.
4(Source: P.A. 97-587, eff. 8-26-11.)
 
5    (35 ILCS 130/9e)
6    Sec. 9e. Secondary distributors; reports. Every secondary
7distributor who is required to procure a license under this
8Act shall, on or before the 15th day of each calendar month,
9file a report with the Department, showing the quantity of
10cigarettes purchased during the preceding calendar month
11either within or outside this State, and the quantity of
12cigarettes sold to retailers or otherwise disposed of during
13the preceding calendar month. Such reports shall be filed
14electronically in such form prescribed by the Department and
15shall contain such other information as the Department may
16reasonably require. Information that the Department may
17reasonably require includes information related to the uniform
18regulation and taxation of cigarettes. The secondary
19distributor's report shall be accompanied by appropriate
20computer generated magnetic media supporting schedule data in
21the format required by the Department, unless, as provided by
22rule, the Department grants an exception upon petition of a
23secondary distributor.
24    A certification by the Director of the Department that a
25report has not been filed, or that information has not been

 

 

10300HB4951sam002- 836 -LRB103 38094 HLH 74177 a

1supplied pursuant to the provisions of this Act, shall be
2prima facie evidence thereof.
3(Source: P.A. 96-1027, eff. 7-12-10.)
 
4    (35 ILCS 130/9f)
5    Sec. 9f. Manufacturer representatives; reports. Every
6manufacturer with authority to maintain manufacturer
7representatives as defined by Section 4f of this Act shall, on
8or before the 15th day of each calendar month, file a report
9with the Department, showing the quantity of cigarettes
10purchased from licensed distributors during the preceding
11calendar month, either within or outside this State, and the
12quantity of cigarettes sold to retailers or otherwise disposed
13of during the preceding calendar month. Such reports shall be
14filed in the form prescribed by the Department and shall
15contain such other information as the Department may
16reasonably require. Information that the Department may
17reasonably require includes information related to the uniform
18regulation and taxation of cigarettes. The report shall be
19filed electronically and be accompanied by appropriate
20computer generated magnetic media supporting schedule data in
21the format required by the Department, unless, as provided by
22rule, the Department grants an exception upon petition of a
23manufacturer with authority to maintain manufacturer
24representatives in this State.
25    A certification by the Director of the Department that a

 

 

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1report has not been filed, or that information has not been
2supplied pursuant to the provisions of this Act, shall be
3prima facie evidence thereof.
4(Source: P.A. 97-587, eff. 8-26-11.)
 
5    Section 80-10. The Cigarette Use Tax Act is amended by
6changing Sections 11 and 11a as follows:
 
7    (35 ILCS 135/11)  (from Ch. 120, par. 453.41)
8    Sec. 11. Return by distributor or manufacturer. Every
9distributor, who is required or authorized to collect tax
10under this Act, but who is not a manufacturer of cigarettes in
11original packages which are contained in a sealed transparent
12wrapper, shall, on or before the 15th day of each calendar
13month, file a return with the Department, showing such
14information as the Department may reasonably require.
15Information that the Department may reasonably require
16includes information related to the uniform regulation and
17taxation of cigarettes. The Department may promulgate rules to
18require that the distributor's return be accompanied by
19appropriate computer-generated magnetic media supporting
20schedule data in the format required by the Department,
21unless, as provided by rule, the Department grants an
22exception upon petition of a distributor.
23    Illinois manufacturers of cigarettes in original packages
24which are contained inside a sealed transparent wrapper shall

 

 

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1file a return by the 5th day of each month covering the
2preceding calendar month. Each such return shall be
3accompanied by the appropriate remittance for tax as provided
4in Section 3 of this Act. Each such return shall disclose such
5information as the Department may lawfully require.
6Information that the Department may lawfully require includes
7information related to the uniform regulation and taxation of
8cigarettes. Each such return shall be accompanied by a copy of
9each invoice rendered by such manufacturer to any purchaser to
10whom such manufacturer delivered cigarettes (or caused
11cigarettes to be delivered) during the period covered by the
12return. The Department may promulgate rules to require that
13the manufacturer's return be accompanied by appropriate
14computer-generated magnetic media supporting schedule data in
15the format required by the Department, unless, as provided by
16rule, the Department grants an exception upon petition of a
17manufacturer.
18    No distributor shall be required to return information to
19the extent to which the reporting of such information would be
20a duplication of such distributor's reporting of information
21in any return which he is required to file with the Department
22under the Cigarette Tax Act. Returns shall be filed on forms
23prescribed by the Department.
24(Source: P.A. 92-322, eff. 1-1-02.)
 
25    (35 ILCS 135/11a)

 

 

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1    Sec. 11a. Secondary distributors; reports. Every secondary
2distributor who is required to procure, or is authorized to
3procure, a license under this Act shall, on or before the 15th
4day of each calendar month, file a report with the Department,
5showing the quantity of cigarettes purchased during the
6preceding calendar month either within or outside this State,
7and the quantity of cigarettes sold to Illinois retailers or
8otherwise disposed of during the preceding calendar month.
9Such reports shall be filed electronically in such form
10prescribed by the Department and shall contain such other
11information as the Department may reasonably require.
12Information that the Department may reasonably require
13includes information related to the uniform regulation and
14taxation of cigarettes. The secondary distributor's report
15shall be accompanied by appropriate computer generated
16magnetic media supporting schedule data in the format required
17by the Department, unless, as provided by rule, the Department
18grants an exception upon petition of a secondary distributor.
19    A certification by the Director of the Department that a
20report has not been filed, or that information has not been
21supplied pursuant to the provisions of this Act, shall be
22prima facie evidence thereof.
23(Source: P.A. 96-1027, eff. 7-12-10.)
 
24    Section 80-15. The Tobacco Products Tax Act of 1995 is
25amended by changing Section 10-30 as follows:
 

 

 

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1    (35 ILCS 143/10-30)
2    Sec. 10-30. Returns.
3    (a) Every distributor shall, on or before the 15th day of
4each month, file a return with the Department covering the
5preceding calendar month. The return shall disclose the
6wholesale price for all tobacco products other than moist
7snuff and the quantity in ounces of moist snuff sold or
8otherwise disposed of and other information that the
9Department may reasonably require. Information that the
10Department may reasonably require includes information related
11to the uniform regulation and taxation of tobacco products.
12The return shall be filed upon a form prescribed and furnished
13by the Department.
14    (b) In addition to the information required under
15subsection (a), on or before the 15th day of each month,
16covering the preceding calendar month, each stamping
17distributor shall, on forms prescribed and furnished by the
18Department, report the quantity of little cigars sold or
19otherwise disposed of, including the number of packages of
20little cigars sold or disposed of during the month containing
2120 or 25 little cigars.
22    (c) At the time when any return of any distributor is due
23to be filed with the Department, the distributor shall also
24remit to the Department the tax liability that the distributor
25has incurred for transactions occurring in the preceding

 

 

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1calendar month.
2    (d) The Department may adopt rules to require the
3electronic filing of any return or document required to be
4filed under this Act. Those rules may provide for exceptions
5from the filing requirement set forth in this paragraph for
6persons who demonstrate that they do not have access to the
7Internet and petition the Department to waive the electronic
8filing requirement.
9    (e) If any payment provided for in this Section exceeds
10the distributor's liabilities under this Act, as shown on an
11original return, the distributor may credit such excess
12payment against liability subsequently to be remitted to the
13Department under this Act, in accordance with reasonable rules
14adopted by the Department.
15(Source: P.A. 100-1171, eff. 1-4-19.)
 
16
ARTICLE 85.

 
17    Section 85-5. The Illinois Income Tax Act is amended by
18changing Section 304 as follows:
 
19    (35 ILCS 5/304)  (from Ch. 120, par. 3-304)
20    Sec. 304. Business income of persons other than residents.
21    (a) In general. The business income of a person other than
22a resident shall be allocated to this State if such person's
23business income is derived solely from this State. If a person

 

 

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1other than a resident derives business income from this State
2and one or more other states, then, for tax years ending on or
3before December 30, 1998, and except as otherwise provided by
4this Section, such person's business income shall be
5apportioned to this State by multiplying the income by a
6fraction, the numerator of which is the sum of the property
7factor (if any), the payroll factor (if any) and 200% of the
8sales factor (if any), and the denominator of which is 4
9reduced by the number of factors other than the sales factor
10which have a denominator of zero and by an additional 2 if the
11sales factor has a denominator of zero. For tax years ending on
12or after December 31, 1998, and except as otherwise provided
13by this Section, persons other than residents who derive
14business income from this State and one or more other states
15shall compute their apportionment factor by weighting their
16property, payroll, and sales factors as provided in subsection
17(h) of this Section.
18    (1) Property factor.
19        (A) The property factor is a fraction, the numerator
20    of which is the average value of the person's real and
21    tangible personal property owned or rented and used in the
22    trade or business in this State during the taxable year
23    and the denominator of which is the average value of all
24    the person's real and tangible personal property owned or
25    rented and used in the trade or business during the
26    taxable year.

 

 

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1        (B) Property owned by the person is valued at its
2    original cost. Property rented by the person is valued at
3    8 times the net annual rental rate. Net annual rental rate
4    is the annual rental rate paid by the person less any
5    annual rental rate received by the person from
6    sub-rentals.
7        (C) The average value of property shall be determined
8    by averaging the values at the beginning and ending of the
9    taxable year, but the Director may require the averaging
10    of monthly values during the taxable year if reasonably
11    required to reflect properly the average value of the
12    person's property.
13    (2) Payroll factor.
14        (A) The payroll factor is a fraction, the numerator of
15    which is the total amount paid in this State during the
16    taxable year by the person for compensation, and the
17    denominator of which is the total compensation paid
18    everywhere during the taxable year.
19        (B) Compensation is paid in this State if:
20            (i) The individual's service is performed entirely
21        within this State;
22            (ii) The individual's service is performed both
23        within and without this State, but the service
24        performed without this State is incidental to the
25        individual's service performed within this State; or
26            (iii) For tax years ending prior to December 31,

 

 

10300HB4951sam002- 844 -LRB103 38094 HLH 74177 a

1        2020, some of the service is performed within this
2        State and either the base of operations, or if there is
3        no base of operations, the place from which the
4        service is directed or controlled is within this
5        State, or the base of operations or the place from
6        which the service is directed or controlled is not in
7        any state in which some part of the service is
8        performed, but the individual's residence is in this
9        State. For tax years ending on or after December 31,
10        2020, compensation is paid in this State if some of the
11        individual's service is performed within this State,
12        the individual's service performed within this State
13        is nonincidental to the individual's service performed
14        without this State, and the individual's service is
15        performed within this State for more than 30 working
16        days during the tax year. The amount of compensation
17        paid in this State shall include the portion of the
18        individual's total compensation for services performed
19        on behalf of his or her employer during the tax year
20        which the number of working days spent within this
21        State during the tax year bears to the total number of
22        working days spent both within and without this State
23        during the tax year. For purposes of this paragraph:
24                (a) The term "working day" means all days
25            during the tax year in which the individual
26            performs duties on behalf of his or her employer.

 

 

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1            All days in which the individual performs no
2            duties on behalf of his or her employer (e.g.,
3            weekends, vacation days, sick days, and holidays)
4            are not working days.
5                (b) A working day is spent within this State
6            if:
7                    (1) the individual performs service on
8                behalf of the employer and a greater amount of
9                time on that day is spent by the individual
10                performing duties on behalf of the employer
11                within this State, without regard to time
12                spent traveling, than is spent performing
13                duties on behalf of the employer without this
14                State; or
15                    (2) the only service the individual
16                performs on behalf of the employer on that day
17                is traveling to a destination within this
18                State, and the individual arrives on that day.
19                (c) Working days spent within this State do
20            not include any day in which the employee is
21            performing services in this State during a
22            disaster period solely in response to a request
23            made to his or her employer by the government of
24            this State, by any political subdivision of this
25            State, or by a person conducting business in this
26            State to perform disaster or emergency-related

 

 

10300HB4951sam002- 846 -LRB103 38094 HLH 74177 a

1            services in this State. For purposes of this item
2            (c):
3                    "Declared State disaster or emergency"
4                means a disaster or emergency event (i) for
5                which a Governor's proclamation of a state of
6                emergency has been issued or (ii) for which a
7                Presidential declaration of a federal major
8                disaster or emergency has been issued.
9                    "Disaster period" means a period that
10                begins 10 days prior to the date of the
11                Governor's proclamation or the President's
12                declaration (whichever is earlier) and extends
13                for a period of 60 calendar days after the end
14                of the declared disaster or emergency period.
15                    "Disaster or emergency-related services"
16                means repairing, renovating, installing,
17                building, or rendering services or conducting
18                other business activities that relate to
19                infrastructure that has been damaged,
20                impaired, or destroyed by the declared State
21                disaster or emergency.
22                    "Infrastructure" means property and
23                equipment owned or used by a public utility,
24                communications network, broadband and internet
25                service provider, cable and video service
26                provider, electric or gas distribution system,

 

 

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1                or water pipeline that provides service to
2                more than one customer or person, including
3                related support facilities. "Infrastructure"
4                includes, but is not limited to, real and
5                personal property such as buildings, offices,
6                power lines, cable lines, poles,
7                communications lines, pipes, structures, and
8                equipment.
9            (iv) Compensation paid to nonresident professional
10        athletes.
11            (a) General. The Illinois source income of a
12        nonresident individual who is a member of a
13        professional athletic team includes the portion of the
14        individual's total compensation for services performed
15        as a member of a professional athletic team during the
16        taxable year which the number of duty days spent
17        within this State performing services for the team in
18        any manner during the taxable year bears to the total
19        number of duty days spent both within and without this
20        State during the taxable year.
21            (b) Travel days. Travel days that do not involve
22        either a game, practice, team meeting, or other
23        similar team event are not considered duty days spent
24        in this State. However, such travel days are
25        considered in the total duty days spent both within
26        and without this State.

 

 

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1            (c) Definitions. For purposes of this subpart
2        (iv):
3                (1) The term "professional athletic team"
4            includes, but is not limited to, any professional
5            baseball, basketball, football, soccer, or hockey
6            team.
7                (2) The term "member of a professional
8            athletic team" includes those employees who are
9            active players, players on the disabled list, and
10            any other persons required to travel and who
11            travel with and perform services on behalf of a
12            professional athletic team on a regular basis.
13            This includes, but is not limited to, coaches,
14            managers, and trainers.
15                (3) Except as provided in items (C) and (D) of
16            this subpart (3), the term "duty days" means all
17            days during the taxable year from the beginning of
18            the professional athletic team's official
19            pre-season training period through the last game
20            in which the team competes or is scheduled to
21            compete. Duty days shall be counted for the year
22            in which they occur, including where a team's
23            official pre-season training period through the
24            last game in which the team competes or is
25            scheduled to compete, occurs during more than one
26            tax year.

 

 

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1                    (A) Duty days shall also include days on
2                which a member of a professional athletic team
3                performs service for a team on a date that
4                does not fall within the foregoing period
5                (e.g., participation in instructional leagues,
6                the "All Star Game", or promotional
7                "caravans"). Performing a service for a
8                professional athletic team includes conducting
9                training and rehabilitation activities, when
10                such activities are conducted at team
11                facilities.
12                    (B) Also included in duty days are game
13                days, practice days, days spent at team
14                meetings, promotional caravans, preseason
15                training camps, and days served with the team
16                through all post-season games in which the
17                team competes or is scheduled to compete.
18                    (C) Duty days for any person who joins a
19                team during the period from the beginning of
20                the professional athletic team's official
21                pre-season training period through the last
22                game in which the team competes, or is
23                scheduled to compete, shall begin on the day
24                that person joins the team. Conversely, duty
25                days for any person who leaves a team during
26                this period shall end on the day that person

 

 

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1                leaves the team. Where a person switches teams
2                during a taxable year, a separate duty-day
3                calculation shall be made for the period the
4                person was with each team.
5                    (D) Days for which a member of a
6                professional athletic team is not compensated
7                and is not performing services for the team in
8                any manner, including days when such member of
9                a professional athletic team has been
10                suspended without pay and prohibited from
11                performing any services for the team, shall
12                not be treated as duty days.
13                    (E) Days for which a member of a
14                professional athletic team is on the disabled
15                list and does not conduct rehabilitation
16                activities at facilities of the team, and is
17                not otherwise performing services for the team
18                in Illinois, shall not be considered duty days
19                spent in this State. All days on the disabled
20                list, however, are considered to be included
21                in total duty days spent both within and
22                without this State.
23                (4) The term "total compensation for services
24            performed as a member of a professional athletic
25            team" means the total compensation received during
26            the taxable year for services performed:

 

 

10300HB4951sam002- 851 -LRB103 38094 HLH 74177 a

1                    (A) from the beginning of the official
2                pre-season training period through the last
3                game in which the team competes or is
4                scheduled to compete during that taxable year;
5                and
6                    (B) during the taxable year on a date
7                which does not fall within the foregoing
8                period (e.g., participation in instructional
9                leagues, the "All Star Game", or promotional
10                caravans).
11                This compensation shall include, but is not
12            limited to, salaries, wages, bonuses as described
13            in this subpart, and any other type of
14            compensation paid during the taxable year to a
15            member of a professional athletic team for
16            services performed in that year. This compensation
17            does not include strike benefits, severance pay,
18            termination pay, contract or option year buy-out
19            payments, expansion or relocation payments, or any
20            other payments not related to services performed
21            for the team.
22                For purposes of this subparagraph, "bonuses"
23            included in "total compensation for services
24            performed as a member of a professional athletic
25            team" subject to the allocation described in
26            Section 302(c)(1) are: bonuses earned as a result

 

 

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1            of play (i.e., performance bonuses) during the
2            season, including bonuses paid for championship,
3            playoff or "bowl" games played by a team, or for
4            selection to all-star league or other honorary
5            positions; and bonuses paid for signing a
6            contract, unless the payment of the signing bonus
7            is not conditional upon the signee playing any
8            games for the team or performing any subsequent
9            services for the team or even making the team, the
10            signing bonus is payable separately from the
11            salary and any other compensation, and the signing
12            bonus is nonrefundable.
13    (3) Sales factor.
14        (A) The sales factor is a fraction, the numerator of
15    which is the total sales of the person in this State during
16    the taxable year, and the denominator of which is the
17    total sales of the person everywhere during the taxable
18    year.
19        (B) Sales of tangible personal property are in this
20    State if:
21            (i) The property is delivered or shipped to a
22        purchaser, other than the United States government,
23        within this State regardless of the f. o. b. point or
24        other conditions of the sale; or
25            (ii) The property is shipped from an office,
26        store, warehouse, factory or other place of storage in

 

 

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1        this State and either the purchaser is the United
2        States government or the person is not taxable in the
3        state of the purchaser; provided, however, that
4        premises owned or leased by a person who has
5        independently contracted with the seller for the
6        printing of newspapers, periodicals or books shall not
7        be deemed to be an office, store, warehouse, factory
8        or other place of storage for purposes of this
9        Section. Sales of tangible personal property are not
10        in this State if the seller and purchaser would be
11        members of the same unitary business group but for the
12        fact that either the seller or purchaser is a person
13        with 80% or more of total business activity outside of
14        the United States and the property is purchased for
15        resale.
16        (B-1) Patents, copyrights, trademarks, and similar
17    items of intangible personal property.
18            (i) Gross receipts from the licensing, sale, or
19        other disposition of a patent, copyright, trademark,
20        or similar item of intangible personal property, other
21        than gross receipts governed by paragraph (B-7) of
22        this item (3), are in this State to the extent the item
23        is utilized in this State during the year the gross
24        receipts are included in gross income.
25            (ii) Place of utilization.
26                (I) A patent is utilized in a state to the

 

 

10300HB4951sam002- 854 -LRB103 38094 HLH 74177 a

1            extent that it is employed in production,
2            fabrication, manufacturing, or other processing in
3            the state or to the extent that a patented product
4            is produced in the state. If a patent is utilized
5            in more than one state, the extent to which it is
6            utilized in any one state shall be a fraction
7            equal to the gross receipts of the licensee or
8            purchaser from sales or leases of items produced,
9            fabricated, manufactured, or processed within that
10            state using the patent and of patented items
11            produced within that state, divided by the total
12            of such gross receipts for all states in which the
13            patent is utilized.
14                (II) A copyright is utilized in a state to the
15            extent that printing or other publication
16            originates in the state. If a copyright is
17            utilized in more than one state, the extent to
18            which it is utilized in any one state shall be a
19            fraction equal to the gross receipts from sales or
20            licenses of materials printed or published in that
21            state divided by the total of such gross receipts
22            for all states in which the copyright is utilized.
23                (III) Trademarks and other items of intangible
24            personal property governed by this paragraph (B-1)
25            are utilized in the state in which the commercial
26            domicile of the licensee or purchaser is located.

 

 

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1            (iii) If the state of utilization of an item of
2        property governed by this paragraph (B-1) cannot be
3        determined from the taxpayer's books and records or
4        from the books and records of any person related to the
5        taxpayer within the meaning of Section 267(b) of the
6        Internal Revenue Code, 26 U.S.C. 267, the gross
7        receipts attributable to that item shall be excluded
8        from both the numerator and the denominator of the
9        sales factor.
10        (B-2) Gross receipts from the license, sale, or other
11    disposition of patents, copyrights, trademarks, and
12    similar items of intangible personal property, other than
13    gross receipts governed by paragraph (B-7) of this item
14    (3), may be included in the numerator or denominator of
15    the sales factor only if gross receipts from licenses,
16    sales, or other disposition of such items comprise more
17    than 50% of the taxpayer's total gross receipts included
18    in gross income during the tax year and during each of the
19    2 immediately preceding tax years; provided that, when a
20    taxpayer is a member of a unitary business group, such
21    determination shall be made on the basis of the gross
22    receipts of the entire unitary business group.
23        (B-5) For taxable years ending on or after December
24    31, 2008, except as provided in subsections (ii) through
25    (vii), receipts from the sale of telecommunications
26    service or mobile telecommunications service are in this

 

 

10300HB4951sam002- 856 -LRB103 38094 HLH 74177 a

1    State if the customer's service address is in this State.
2            (i) For purposes of this subparagraph (B-5), the
3        following terms have the following meanings:
4            "Ancillary services" means services that are
5        associated with or incidental to the provision of
6        "telecommunications services", including, but not
7        limited to, "detailed telecommunications billing",
8        "directory assistance", "vertical service", and "voice
9        mail services".
10            "Air-to-Ground Radiotelephone service" means a
11        radio service, as that term is defined in 47 CFR 22.99,
12        in which common carriers are authorized to offer and
13        provide radio telecommunications service for hire to
14        subscribers in aircraft.
15            "Call-by-call Basis" means any method of charging
16        for telecommunications services where the price is
17        measured by individual calls.
18            "Communications Channel" means a physical or
19        virtual path of communications over which signals are
20        transmitted between or among customer channel
21        termination points.
22            "Conference bridging service" means an "ancillary
23        service" that links two or more participants of an
24        audio or video conference call and may include the
25        provision of a telephone number. "Conference bridging
26        service" does not include the "telecommunications

 

 

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1        services" used to reach the conference bridge.
2            "Customer Channel Termination Point" means the
3        location where the customer either inputs or receives
4        the communications.
5            "Detailed telecommunications billing service"
6        means an "ancillary service" of separately stating
7        information pertaining to individual calls on a
8        customer's billing statement.
9            "Directory assistance" means an "ancillary
10        service" of providing telephone number information,
11        and/or address information.
12            "Home service provider" means the facilities based
13        carrier or reseller with which the customer contracts
14        for the provision of mobile telecommunications
15        services.
16            "Mobile telecommunications service" means
17        commercial mobile radio service, as defined in Section
18        20.3 of Title 47 of the Code of Federal Regulations as
19        in effect on June 1, 1999.
20            "Place of primary use" means the street address
21        representative of where the customer's use of the
22        telecommunications service primarily occurs, which
23        must be the residential street address or the primary
24        business street address of the customer. In the case
25        of mobile telecommunications services, "place of
26        primary use" must be within the licensed service area

 

 

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1        of the home service provider.
2            "Post-paid telecommunication service" means the
3        telecommunications service obtained by making a
4        payment on a call-by-call basis either through the use
5        of a credit card or payment mechanism such as a bank
6        card, travel card, credit card, or debit card, or by
7        charge made to a telephone number which is not
8        associated with the origination or termination of the
9        telecommunications service. A post-paid calling
10        service includes telecommunications service, except a
11        prepaid wireless calling service, that would be a
12        prepaid calling service except it is not exclusively a
13        telecommunication service.
14            "Prepaid telecommunication service" means the
15        right to access exclusively telecommunications
16        services, which must be paid for in advance and which
17        enables the origination of calls using an access
18        number or authorization code, whether manually or
19        electronically dialed, and that is sold in
20        predetermined units or dollars of which the number
21        declines with use in a known amount.
22            "Prepaid Mobile telecommunication service" means a
23        telecommunications service that provides the right to
24        utilize mobile wireless service as well as other
25        non-telecommunication services, including, but not
26        limited to, ancillary services, which must be paid for

 

 

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1        in advance that is sold in predetermined units or
2        dollars of which the number declines with use in a
3        known amount.
4            "Private communication service" means a
5        telecommunication service that entitles the customer
6        to exclusive or priority use of a communications
7        channel or group of channels between or among
8        termination points, regardless of the manner in which
9        such channel or channels are connected, and includes
10        switching capacity, extension lines, stations, and any
11        other associated services that are provided in
12        connection with the use of such channel or channels.
13            "Service address" means:
14                (a) The location of the telecommunications
15            equipment to which a customer's call is charged
16            and from which the call originates or terminates,
17            regardless of where the call is billed or paid;
18                (b) If the location in line (a) is not known,
19            service address means the origination point of the
20            signal of the telecommunications services first
21            identified by either the seller's
22            telecommunications system or in information
23            received by the seller from its service provider
24            where the system used to transport such signals is
25            not that of the seller; and
26                (c) If the locations in line (a) and line (b)

 

 

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1            are not known, the service address means the
2            location of the customer's place of primary use.
3            "Telecommunications service" means the electronic
4        transmission, conveyance, or routing of voice, data,
5        audio, video, or any other information or signals to a
6        point, or between or among points. The term
7        "telecommunications service" includes such
8        transmission, conveyance, or routing in which computer
9        processing applications are used to act on the form,
10        code or protocol of the content for purposes of
11        transmission, conveyance or routing without regard to
12        whether such service is referred to as voice over
13        Internet protocol services or is classified by the
14        Federal Communications Commission as enhanced or value
15        added. "Telecommunications service" does not include:
16                (a) Data processing and information services
17            that allow data to be generated, acquired, stored,
18            processed, or retrieved and delivered by an
19            electronic transmission to a purchaser when such
20            purchaser's primary purpose for the underlying
21            transaction is the processed data or information;
22                (b) Installation or maintenance of wiring or
23            equipment on a customer's premises;
24                (c) Tangible personal property;
25                (d) Advertising, including, but not limited
26            to, directory advertising;

 

 

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1                (e) Billing and collection services provided
2            to third parties;
3                (f) Internet access service;
4                (g) Radio and television audio and video
5            programming services, regardless of the medium,
6            including the furnishing of transmission,
7            conveyance and routing of such services by the
8            programming service provider. Radio and television
9            audio and video programming services shall
10            include, but not be limited to, cable service as
11            defined in 47 USC 522(6) and audio and video
12            programming services delivered by commercial
13            mobile radio service providers, as defined in 47
14            CFR 20.3;
15                (h) "Ancillary services"; or
16                (i) Digital products "delivered
17            electronically", including, but not limited to,
18            software, music, video, reading materials or ring
19            tones.
20            "Vertical service" means an "ancillary service"
21        that is offered in connection with one or more
22        "telecommunications services", which offers advanced
23        calling features that allow customers to identify
24        callers and to manage multiple calls and call
25        connections, including "conference bridging services".
26            "Voice mail service" means an "ancillary service"

 

 

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1        that enables the customer to store, send or receive
2        recorded messages. "Voice mail service" does not
3        include any "vertical services" that the customer may
4        be required to have in order to utilize the "voice mail
5        service".
6            (ii) Receipts from the sale of telecommunications
7        service sold on an individual call-by-call basis are
8        in this State if either of the following applies:
9                (a) The call both originates and terminates in
10            this State.
11                (b) The call either originates or terminates
12            in this State and the service address is located
13            in this State.
14            (iii) Receipts from the sale of postpaid
15        telecommunications service at retail are in this State
16        if the origination point of the telecommunication
17        signal, as first identified by the service provider's
18        telecommunication system or as identified by
19        information received by the seller from its service
20        provider if the system used to transport
21        telecommunication signals is not the seller's, is
22        located in this State.
23            (iv) Receipts from the sale of prepaid
24        telecommunications service or prepaid mobile
25        telecommunications service at retail are in this State
26        if the purchaser obtains the prepaid card or similar

 

 

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1        means of conveyance at a location in this State.
2        Receipts from recharging a prepaid telecommunications
3        service or mobile telecommunications service is in
4        this State if the purchaser's billing information
5        indicates a location in this State.
6            (v) Receipts from the sale of private
7        communication services are in this State as follows:
8                (a) 100% of receipts from charges imposed at
9            each channel termination point in this State.
10                (b) 100% of receipts from charges for the
11            total channel mileage between each channel
12            termination point in this State.
13                (c) 50% of the total receipts from charges for
14            service segments when those segments are between 2
15            customer channel termination points, 1 of which is
16            located in this State and the other is located
17            outside of this State, which segments are
18            separately charged.
19                (d) The receipts from charges for service
20            segments with a channel termination point located
21            in this State and in two or more other states, and
22            which segments are not separately billed, are in
23            this State based on a percentage determined by
24            dividing the number of customer channel
25            termination points in this State by the total
26            number of customer channel termination points.

 

 

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1            (vi) Receipts from charges for ancillary services
2        for telecommunications service sold to customers at
3        retail are in this State if the customer's primary
4        place of use of telecommunications services associated
5        with those ancillary services is in this State. If the
6        seller of those ancillary services cannot determine
7        where the associated telecommunications are located,
8        then the ancillary services shall be based on the
9        location of the purchaser.
10            (vii) Receipts to access a carrier's network or
11        from the sale of telecommunication services or
12        ancillary services for resale are in this State as
13        follows:
14                (a) 100% of the receipts from access fees
15            attributable to intrastate telecommunications
16            service that both originates and terminates in
17            this State.
18                (b) 50% of the receipts from access fees
19            attributable to interstate telecommunications
20            service if the interstate call either originates
21            or terminates in this State.
22                (c) 100% of the receipts from interstate end
23            user access line charges, if the customer's
24            service address is in this State. As used in this
25            subdivision, "interstate end user access line
26            charges" includes, but is not limited to, the

 

 

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1            surcharge approved by the federal communications
2            commission and levied pursuant to 47 CFR 69.
3                (d) Gross receipts from sales of
4            telecommunication services or from ancillary
5            services for telecommunications services sold to
6            other telecommunication service providers for
7            resale shall be sourced to this State using the
8            apportionment concepts used for non-resale
9            receipts of telecommunications services if the
10            information is readily available to make that
11            determination. If the information is not readily
12            available, then the taxpayer may use any other
13            reasonable and consistent method.
14        (B-7) For taxable years ending on or after December
15    31, 2008, receipts from the sale of broadcasting services
16    are in this State if the broadcasting services are
17    received in this State. For purposes of this paragraph
18    (B-7), the following terms have the following meanings:
19            "Advertising revenue" means consideration received
20        by the taxpayer in exchange for broadcasting services
21        or allowing the broadcasting of commercials or
22        announcements in connection with the broadcasting of
23        film or radio programming, from sponsorships of the
24        programming, or from product placements in the
25        programming.
26            "Audience factor" means the ratio that the

 

 

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1        audience or subscribers located in this State of a
2        station, a network, or a cable system bears to the
3        total audience or total subscribers for that station,
4        network, or cable system. The audience factor for film
5        or radio programming shall be determined by reference
6        to the books and records of the taxpayer or by
7        reference to published rating statistics provided the
8        method used by the taxpayer is consistently used from
9        year to year for this purpose and fairly represents
10        the taxpayer's activity in this State.
11            "Broadcast" or "broadcasting" or "broadcasting
12        services" means the transmission or provision of film
13        or radio programming, whether through the public
14        airwaves, by cable, by direct or indirect satellite
15        transmission, or by any other means of communication,
16        either through a station, a network, or a cable
17        system.
18            "Film" or "film programming" means the broadcast
19        on television of any and all performances, events, or
20        productions, including, but not limited to, news,
21        sporting events, plays, stories, or other literary,
22        commercial, educational, or artistic works, either
23        live or through the use of video tape, disc, or any
24        other type of format or medium. Each episode of a
25        series of films produced for television shall
26        constitute separate "film" notwithstanding that the

 

 

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1        series relates to the same principal subject and is
2        produced during one or more tax periods.
3            "Radio" or "radio programming" means the broadcast
4        on radio of any and all performances, events, or
5        productions, including, but not limited to, news,
6        sporting events, plays, stories, or other literary,
7        commercial, educational, or artistic works, either
8        live or through the use of an audio tape, disc, or any
9        other format or medium. Each episode in a series of
10        radio programming produced for radio broadcast shall
11        constitute a separate "radio programming"
12        notwithstanding that the series relates to the same
13        principal subject and is produced during one or more
14        tax periods.
15                (i) In the case of advertising revenue from
16            broadcasting, the customer is the advertiser and
17            the service is received in this State if the
18            commercial domicile of the advertiser is in this
19            State.
20                (ii) In the case where film or radio
21            programming is broadcast by a station, a network,
22            or a cable system for a fee or other remuneration
23            received from the recipient of the broadcast, the
24            portion of the service that is received in this
25            State is measured by the portion of the recipients
26            of the broadcast located in this State.

 

 

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1            Accordingly, the fee or other remuneration for
2            such service that is included in the Illinois
3            numerator of the sales factor is the total of
4            those fees or other remuneration received from
5            recipients in Illinois. For purposes of this
6            paragraph, a taxpayer may determine the location
7            of the recipients of its broadcast using the
8            address of the recipient shown in its contracts
9            with the recipient or using the billing address of
10            the recipient in the taxpayer's records.
11                (iii) In the case where film or radio
12            programming is broadcast by a station, a network,
13            or a cable system for a fee or other remuneration
14            from the person providing the programming, the
15            portion of the broadcast service that is received
16            by such station, network, or cable system in this
17            State is measured by the portion of recipients of
18            the broadcast located in this State. Accordingly,
19            the amount of revenue related to such an
20            arrangement that is included in the Illinois
21            numerator of the sales factor is the total fee or
22            other total remuneration from the person providing
23            the programming related to that broadcast
24            multiplied by the Illinois audience factor for
25            that broadcast.
26                (iv) In the case where film or radio

 

 

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1            programming is provided by a taxpayer that is a
2            network or station to a customer for broadcast in
3            exchange for a fee or other remuneration from that
4            customer the broadcasting service is received at
5            the location of the office of the customer from
6            which the services were ordered in the regular
7            course of the customer's trade or business.
8            Accordingly, in such a case the revenue derived by
9            the taxpayer that is included in the taxpayer's
10            Illinois numerator of the sales factor is the
11            revenue from such customers who receive the
12            broadcasting service in Illinois.
13                (v) In the case where film or radio
14            programming is provided by a taxpayer that is not
15            a network or station to another person for
16            broadcasting in exchange for a fee or other
17            remuneration from that person, the broadcasting
18            service is received at the location of the office
19            of the customer from which the services were
20            ordered in the regular course of the customer's
21            trade or business. Accordingly, in such a case the
22            revenue derived by the taxpayer that is included
23            in the taxpayer's Illinois numerator of the sales
24            factor is the revenue from such customers who
25            receive the broadcasting service in Illinois.
26        (B-8) Gross receipts from winnings under the Illinois

 

 

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1    Lottery Law from the assignment of a prize under Section
2    13.1 of the Illinois Lottery Law are received in this
3    State. This paragraph (B-8) applies only to taxable years
4    ending on or after December 31, 2013.
5        (B-9) For taxable years ending on or after December
6    31, 2019, gross receipts from winnings from pari-mutuel
7    wagering conducted at a wagering facility licensed under
8    the Illinois Horse Racing Act of 1975 or from winnings
9    from gambling games conducted on a riverboat or in a
10    casino or organization gaming facility licensed under the
11    Illinois Gambling Act are in this State.
12        (B-10) For taxable years ending on or after December
13    31, 2021, gross receipts from winnings from sports
14    wagering conducted in accordance with the Sports Wagering
15    Act are in this State.
16        (C) For taxable years ending before December 31, 2008,
17    sales, other than sales governed by paragraphs (B), (B-1),
18    (B-2), and (B-8) are in this State if:
19            (i) The income-producing activity is performed in
20        this State; or
21            (ii) The income-producing activity is performed
22        both within and without this State and a greater
23        proportion of the income-producing activity is
24        performed within this State than without this State,
25        based on performance costs.
26        (C-5) For taxable years ending on or after December

 

 

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1    31, 2008, sales, other than sales governed by paragraphs
2    (B), (B-1), (B-2), (B-5), and (B-7), are in this State if
3    any of the following criteria are met:
4            (i) Sales from the sale or lease of real property
5        are in this State if the property is located in this
6        State.
7            (ii) Sales from the lease or rental of tangible
8        personal property are in this State if the property is
9        located in this State during the rental period. Sales
10        from the lease or rental of tangible personal property
11        that is characteristically moving property, including,
12        but not limited to, motor vehicles, rolling stock,
13        aircraft, vessels, or mobile equipment are in this
14        State to the extent that the property is used in this
15        State.
16            (iii) In the case of interest, net gains (but not
17        less than zero) and other items of income from
18        intangible personal property, the sale is in this
19        State if:
20                (a) in the case of a taxpayer who is a dealer
21            in the item of intangible personal property within
22            the meaning of Section 475 of the Internal Revenue
23            Code, the income or gain is received from a
24            customer in this State. For purposes of this
25            subparagraph, a customer is in this State if the
26            customer is an individual, trust or estate who is

 

 

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1            a resident of this State and, for all other
2            customers, if the customer's commercial domicile
3            is in this State. Unless the dealer has actual
4            knowledge of the residence or commercial domicile
5            of a customer during a taxable year, the customer
6            shall be deemed to be a customer in this State if
7            the billing address of the customer, as shown in
8            the records of the dealer, is in this State; or
9                (b) in all other cases, if the
10            income-producing activity of the taxpayer is
11            performed in this State or, if the
12            income-producing activity of the taxpayer is
13            performed both within and without this State, if a
14            greater proportion of the income-producing
15            activity of the taxpayer is performed within this
16            State than in any other state, based on
17            performance costs.
18            (iv) Sales of services are in this State if the
19        services are received in this State. For the purposes
20        of this section, gross receipts from the performance
21        of services provided to a corporation, partnership, or
22        trust may only be attributed to a state where that
23        corporation, partnership, or trust has a fixed place
24        of business. If the state where the services are
25        received is not readily determinable or is a state
26        where the corporation, partnership, or trust receiving

 

 

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1        the service does not have a fixed place of business,
2        the services shall be deemed to be received at the
3        location of the office of the customer from which the
4        services were ordered in the regular course of the
5        customer's trade or business. If the ordering office
6        cannot be determined, the services shall be deemed to
7        be received at the office of the customer to which the
8        services are billed. If the taxpayer is not taxable in
9        the state in which the services are received, the sale
10        must be excluded from both the numerator and the
11        denominator of the sales factor. The Department shall
12        adopt rules prescribing where specific types of
13        service are received, including, but not limited to,
14        publishing, and utility service.
15        (D) For taxable years ending on or after December 31,
16    1995, the following items of income shall not be included
17    in the numerator or denominator of the sales factor:
18    dividends; amounts included under Section 78 of the
19    Internal Revenue Code; and Subpart F income as defined in
20    Section 952 of the Internal Revenue Code. No inference
21    shall be drawn from the enactment of this paragraph (D) in
22    construing this Section for taxable years ending before
23    December 31, 1995.
24        (E) Paragraphs (B-1) and (B-2) shall apply to tax
25    years ending on or after December 31, 1999, provided that
26    a taxpayer may elect to apply the provisions of these

 

 

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1    paragraphs to prior tax years. Such election shall be made
2    in the form and manner prescribed by the Department, shall
3    be irrevocable, and shall apply to all tax years; provided
4    that, if a taxpayer's Illinois income tax liability for
5    any tax year, as assessed under Section 903 prior to
6    January 1, 1999, was computed in a manner contrary to the
7    provisions of paragraphs (B-1) or (B-2), no refund shall
8    be payable to the taxpayer for that tax year to the extent
9    such refund is the result of applying the provisions of
10    paragraph (B-1) or (B-2) retroactively. In the case of a
11    unitary business group, such election shall apply to all
12    members of such group for every tax year such group is in
13    existence, but shall not apply to any taxpayer for any
14    period during which that taxpayer is not a member of such
15    group.
16    (b) Insurance companies.
17        (1) In general. Except as otherwise provided by
18    paragraph (2), business income of an insurance company for
19    a taxable year shall be apportioned to this State by
20    multiplying such income by a fraction, the numerator of
21    which is the direct premiums written for insurance upon
22    property or risk in this State, and the denominator of
23    which is the direct premiums written for insurance upon
24    property or risk everywhere. For purposes of this
25    subsection, the term "direct premiums written" means the
26    total amount of direct premiums written, assessments and

 

 

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1    annuity considerations as reported for the taxable year on
2    the annual statement filed by the company with the
3    Illinois Director of Insurance in the form approved by the
4    National Convention of Insurance Commissioners or such
5    other form as may be prescribed in lieu thereof.
6        (2) Reinsurance. If the principal source of premiums
7    written by an insurance company consists of premiums for
8    reinsurance accepted by it, the business income of such
9    company shall be apportioned to this State by multiplying
10    such income by a fraction, the numerator of which is the
11    sum of (i) direct premiums written for insurance upon
12    property or risk in this State, plus (ii) premiums written
13    for reinsurance accepted in respect of property or risk in
14    this State, and the denominator of which is the sum of
15    (iii) direct premiums written for insurance upon property
16    or risk everywhere, plus (iv) premiums written for
17    reinsurance accepted in respect of property or risk
18    everywhere. For purposes of this paragraph, premiums
19    written for reinsurance accepted in respect of property or
20    risk in this State, whether or not otherwise determinable,
21    may, at the election of the company, be determined on the
22    basis of the proportion which premiums written for
23    reinsurance accepted from companies commercially domiciled
24    in Illinois bears to premiums written for reinsurance
25    accepted from all sources, or, alternatively, in the
26    proportion which the sum of the direct premiums written

 

 

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1    for insurance upon property or risk in this State by each
2    ceding company from which reinsurance is accepted bears to
3    the sum of the total direct premiums written by each such
4    ceding company for the taxable year. The election made by
5    a company under this paragraph for its first taxable year
6    ending on or after December 31, 2011, shall be binding for
7    that company for that taxable year and for all subsequent
8    taxable years, and may be altered only with the written
9    permission of the Department, which shall not be
10    unreasonably withheld.
11    (c) Financial organizations.
12        (1) In general. For taxable years ending before
13    December 31, 2008, business income of a financial
14    organization shall be apportioned to this State by
15    multiplying such income by a fraction, the numerator of
16    which is its business income from sources within this
17    State, and the denominator of which is its business income
18    from all sources. For the purposes of this subsection, the
19    business income of a financial organization from sources
20    within this State is the sum of the amounts referred to in
21    subparagraphs (A) through (E) following, but excluding the
22    adjusted income of an international banking facility as
23    determined in paragraph (2):
24            (A) Fees, commissions or other compensation for
25        financial services rendered within this State;
26            (B) Gross profits from trading in stocks, bonds or

 

 

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1        other securities managed within this State;
2            (C) Dividends, and interest from Illinois
3        customers, which are received within this State;
4            (D) Interest charged to customers at places of
5        business maintained within this State for carrying
6        debit balances of margin accounts, without deduction
7        of any costs incurred in carrying such accounts; and
8            (E) Any other gross income resulting from the
9        operation as a financial organization within this
10        State.
11        In computing the amounts referred to in paragraphs (A)
12    through (E) of this subsection, any amount received by a
13    member of an affiliated group (determined under Section
14    1504(a) of the Internal Revenue Code but without reference
15    to whether any such corporation is an "includible
16    corporation" under Section 1504(b) of the Internal Revenue
17    Code) from another member of such group shall be included
18    only to the extent such amount exceeds expenses of the
19    recipient directly related thereto.
20        (2) International Banking Facility. For taxable years
21    ending before December 31, 2008:
22            (A) Adjusted Income. The adjusted income of an
23        international banking facility is its income reduced
24        by the amount of the floor amount.
25            (B) Floor Amount. The floor amount shall be the
26        amount, if any, determined by multiplying the income

 

 

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1        of the international banking facility by a fraction,
2        not greater than one, which is determined as follows:
3                (i) The numerator shall be:
4                The average aggregate, determined on a
5            quarterly basis, of the financial organization's
6            loans to banks in foreign countries, to foreign
7            domiciled borrowers (except where secured
8            primarily by real estate) and to foreign
9            governments and other foreign official
10            institutions, as reported for its branches,
11            agencies and offices within the state on its
12            "Consolidated Report of Condition", Schedule A,
13            Lines 2.c., 5.b., and 7.a., which was filed with
14            the Federal Deposit Insurance Corporation and
15            other regulatory authorities, for the year 1980,
16            minus
17                The average aggregate, determined on a
18            quarterly basis, of such loans (other than loans
19            of an international banking facility), as reported
20            by the financial institution for its branches,
21            agencies and offices within the state, on the
22            corresponding Schedule and lines of the
23            Consolidated Report of Condition for the current
24            taxable year, provided, however, that in no case
25            shall the amount determined in this clause (the
26            subtrahend) exceed the amount determined in the

 

 

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1            preceding clause (the minuend); and
2                (ii) the denominator shall be the average
3            aggregate, determined on a quarterly basis, of the
4            international banking facility's loans to banks in
5            foreign countries, to foreign domiciled borrowers
6            (except where secured primarily by real estate)
7            and to foreign governments and other foreign
8            official institutions, which were recorded in its
9            financial accounts for the current taxable year.
10            (C) Change to Consolidated Report of Condition and
11        in Qualification. In the event the Consolidated Report
12        of Condition which is filed with the Federal Deposit
13        Insurance Corporation and other regulatory authorities
14        is altered so that the information required for
15        determining the floor amount is not found on Schedule
16        A, lines 2.c., 5.b. and 7.a., the financial
17        institution shall notify the Department and the
18        Department may, by regulations or otherwise, prescribe
19        or authorize the use of an alternative source for such
20        information. The financial institution shall also
21        notify the Department should its international banking
22        facility fail to qualify as such, in whole or in part,
23        or should there be any amendment or change to the
24        Consolidated Report of Condition, as originally filed,
25        to the extent such amendment or change alters the
26        information used in determining the floor amount.

 

 

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1        (3) For taxable years ending on or after December 31,
2    2008, the business income of a financial organization
3    shall be apportioned to this State by multiplying such
4    income by a fraction, the numerator of which is its gross
5    receipts from sources in this State or otherwise
6    attributable to this State's marketplace and the
7    denominator of which is its gross receipts everywhere
8    during the taxable year. "Gross receipts" for purposes of
9    this subparagraph (3) means gross income, including net
10    taxable gain on disposition of assets, including
11    securities and money market instruments, when derived from
12    transactions and activities in the regular course of the
13    financial organization's trade or business. The following
14    examples are illustrative:
15            (i) Receipts from the lease or rental of real or
16        tangible personal property are in this State if the
17        property is located in this State during the rental
18        period. Receipts from the lease or rental of tangible
19        personal property that is characteristically moving
20        property, including, but not limited to, motor
21        vehicles, rolling stock, aircraft, vessels, or mobile
22        equipment are from sources in this State to the extent
23        that the property is used in this State.
24            (ii) Interest income, commissions, fees, gains on
25        disposition, and other receipts from assets in the
26        nature of loans that are secured primarily by real

 

 

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1        estate or tangible personal property are from sources
2        in this State if the security is located in this State.
3            (iii) Interest income, commissions, fees, gains on
4        disposition, and other receipts from consumer loans
5        that are not secured by real or tangible personal
6        property are from sources in this State if the debtor
7        is a resident of this State.
8            (iv) Interest income, commissions, fees, gains on
9        disposition, and other receipts from commercial loans
10        and installment obligations that are not secured by
11        real or tangible personal property are from sources in
12        this State if the proceeds of the loan are to be
13        applied in this State. If it cannot be determined
14        where the funds are to be applied, the income and
15        receipts are from sources in this State if the office
16        of the borrower from which the loan was negotiated in
17        the regular course of business is located in this
18        State. If the location of this office cannot be
19        determined, the income and receipts shall be excluded
20        from the numerator and denominator of the sales
21        factor.
22            (v) Interest income, fees, gains on disposition,
23        service charges, merchant discount income, and other
24        receipts from credit card receivables are from sources
25        in this State if the card charges are regularly billed
26        to a customer in this State.

 

 

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1            (vi) Receipts from the performance of services,
2        including, but not limited to, fiduciary, advisory,
3        and brokerage services, are in this State if the
4        services are received in this State within the meaning
5        of subparagraph (a)(3)(C-5)(iv) of this Section.
6            (vii) Receipts from the issuance of travelers
7        checks and money orders are from sources in this State
8        if the checks and money orders are issued from a
9        location within this State.
10            (viii) For tax years ending before December 31,
11        2024, receipts Receipts from investment assets and
12        activities and trading assets and activities are
13        included in the receipts factor as follows:
14                (1) Interest, dividends, net gains (but not
15            less than zero) and other income from investment
16            assets and activities from trading assets and
17            activities shall be included in the receipts
18            factor. Investment assets and activities and
19            trading assets and activities include, but are not
20            limited to: investment securities; trading account
21            assets; federal funds; securities purchased and
22            sold under agreements to resell or repurchase;
23            options; futures contracts; forward contracts;
24            notional principal contracts such as swaps;
25            equities; and foreign currency transactions. With
26            respect to the investment and trading assets and

 

 

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1            activities described in subparagraphs (A) and (B)
2            of this paragraph, the receipts factor shall
3            include the amounts described in such
4            subparagraphs.
5                    (A) The receipts factor shall include the
6                amount by which interest from federal funds
7                sold and securities purchased under resale
8                agreements exceeds interest expense on federal
9                funds purchased and securities sold under
10                repurchase agreements.
11                    (B) The receipts factor shall include the
12                amount by which interest, dividends, gains and
13                other income from trading assets and
14                activities, including, but not limited to,
15                assets and activities in the matched book, in
16                the arbitrage book, and foreign currency
17                transactions, exceed amounts paid in lieu of
18                interest, amounts paid in lieu of dividends,
19                and losses from such assets and activities.
20                (2) The numerator of the receipts factor
21            includes interest, dividends, net gains (but not
22            less than zero), and other income from investment
23            assets and activities and from trading assets and
24            activities described in paragraph (1) of this
25            subsection that are attributable to this State.
26                    (A) The amount of interest, dividends, net

 

 

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1                gains (but not less than zero), and other
2                income from investment assets and activities
3                in the investment account to be attributed to
4                this State and included in the numerator is
5                determined by multiplying all such income from
6                such assets and activities by a fraction, the
7                numerator of which is the gross income from
8                such assets and activities which are properly
9                assigned to a fixed place of business of the
10                taxpayer within this State and the denominator
11                of which is the gross income from all such
12                assets and activities.
13                    (B) The amount of interest from federal
14                funds sold and purchased and from securities
15                purchased under resale agreements and
16                securities sold under repurchase agreements
17                attributable to this State and included in the
18                numerator is determined by multiplying the
19                amount described in subparagraph (A) of
20                paragraph (1) of this subsection from such
21                funds and such securities by a fraction, the
22                numerator of which is the gross income from
23                such funds and such securities which are
24                properly assigned to a fixed place of business
25                of the taxpayer within this State and the
26                denominator of which is the gross income from

 

 

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1                all such funds and such securities.
2                    (C) The amount of interest, dividends,
3                gains, and other income from trading assets
4                and activities, including, but not limited to,
5                assets and activities in the matched book, in
6                the arbitrage book and foreign currency
7                transactions (but excluding amounts described
8                in subparagraphs (A) or (B) of this
9                paragraph), attributable to this State and
10                included in the numerator is determined by
11                multiplying the amount described in
12                subparagraph (B) of paragraph (1) of this
13                subsection by a fraction, the numerator of
14                which is the gross income from such trading
15                assets and activities which are properly
16                assigned to a fixed place of business of the
17                taxpayer within this State and the denominator
18                of which is the gross income from all such
19                assets and activities.
20                    (D) Properly assigned, for purposes of
21                this paragraph (2) of this subsection, means
22                the investment or trading asset or activity is
23                assigned to the fixed place of business with
24                which it has a preponderance of substantive
25                contacts. An investment or trading asset or
26                activity assigned by the taxpayer to a fixed

 

 

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1                place of business without the State shall be
2                presumed to have been properly assigned if:
3                        (i) the taxpayer has assigned, in the
4                    regular course of its business, such asset
5                    or activity on its records to a fixed
6                    place of business consistent with federal
7                    or state regulatory requirements;
8                        (ii) such assignment on its records is
9                    based upon substantive contacts of the
10                    asset or activity to such fixed place of
11                    business; and
12                        (iii) the taxpayer uses such records
13                    reflecting assignment of such assets or
14                    activities for the filing of all state and
15                    local tax returns for which an assignment
16                    of such assets or activities to a fixed
17                    place of business is required.
18                    (E) The presumption of proper assignment
19                of an investment or trading asset or activity
20                provided in subparagraph (D) of paragraph (2)
21                of this subsection may be rebutted upon a
22                showing by the Department, supported by a
23                preponderance of the evidence, that the
24                preponderance of substantive contacts
25                regarding such asset or activity did not occur
26                at the fixed place of business to which it was

 

 

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1                assigned on the taxpayer's records. If the
2                fixed place of business that has a
3                preponderance of substantive contacts cannot
4                be determined for an investment or trading
5                asset or activity to which the presumption in
6                subparagraph (D) of paragraph (2) of this
7                subsection does not apply or with respect to
8                which that presumption has been rebutted, that
9                asset or activity is properly assigned to the
10                state in which the taxpayer's commercial
11                domicile is located. For purposes of this
12                subparagraph (E), it shall be presumed,
13                subject to rebuttal, that taxpayer's
14                commercial domicile is in the state of the
15                United States or the District of Columbia to
16                which the greatest number of employees are
17                regularly connected with the management of the
18                investment or trading income or out of which
19                they are working, irrespective of where the
20                services of such employees are performed, as
21                of the last day of the taxable year.
22            (ix) For tax years ending on or after December 31,
23        2024, receipts from investment assets and activities
24        and trading assets and activities are included in the
25        receipts factor as follows:
26                (1) Interest, dividends, net gains (but not

 

 

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1            less than zero), and other income from investment
2            assets and activities from trading assets and
3            activities shall be included in the receipts
4            factor. Investment assets and activities and
5            trading assets and activities include, but are not
6            limited to the following: investment securities;
7            trading account assets; federal funds; securities
8            purchased and sold under agreements to resell or
9            repurchase; options; futures contracts; forward
10            contracts; notional principal contracts, such as
11            swaps; equities; and foreign currency
12            transactions. With respect to the investment and
13            trading assets and activities described in
14            subparagraphs (A) and (B) of this paragraph, the
15            receipts factor shall include the amounts
16            described in those subparagraphs.
17                    (A) The receipts factor shall include the
18                amount by which interest from federal funds
19                sold and securities purchased under resale
20                agreements exceeds interest expense on federal
21                funds purchased and securities sold under
22                repurchase agreements.
23                    (B) The receipts factor shall include the
24                amount by which interest, dividends, gains and
25                other income from trading assets and
26                activities, including, but not limited to,

 

 

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1                assets and activities in the matched book, in
2                the arbitrage book, and foreign currency
3                transactions, exceed amounts paid in lieu of
4                interest, amounts paid in lieu of dividends,
5                and losses from such assets and activities.
6                (2) The numerator of the receipts factor
7            includes interest, dividends, net gains (but not
8            less than zero), and other income from investment
9            assets and activities and from trading assets and
10            activities described in paragraph (1) of this
11            subsection that are attributable to this State.
12                    (A) The amount of interest, dividends, net
13                gains (but not less than zero), and other
14                income from investment assets and activities
15                in the investment account to be attributed to
16                this State and included in the numerator is
17                determined by multiplying all of the income
18                from those assets and activities by a
19                fraction, the numerator of which is the total
20                receipts included in the numerator pursuant to
21                items (i) through (vii) of this subparagraph
22                (3) and the denominator of which is all total
23                receipts included in the denominator, other
24                than interest, dividends, net gains (but not
25                less than zero), and other income from
26                investment assets and activities and trading

 

 

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1                assets and activities.
2                    (B) The amount of interest from federal
3                funds sold and purchased and from securities
4                purchased under resale agreements and
5                securities sold under repurchase agreements
6                attributable to this State and included in the
7                numerator is determined by multiplying the
8                amount described in subparagraph (A) of
9                paragraph (1) of this subsection from such
10                funds and such securities by a fraction, the
11                numerator of which is the total receipts
12                included in the numerator pursuant to items
13                (i) through (vii) of this subparagraph (3) and
14                the denominator of which is all total receipts
15                included in the denominator, other than
16                interest, dividends, net gains (but not less
17                than zero), and other income from investment
18                assets and activities and trading assets and
19                activities.
20                    (C) The amount of interest, dividends,
21                gains, and other income from trading assets
22                and activities, including, but not limited to,
23                assets and activities in the matched book, in
24                the arbitrage book and foreign currency
25                transactions (but excluding amounts described
26                in subparagraphs (A) or (B) of this

 

 

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1                paragraph), attributable to this State and
2                included in the numerator is determined by
3                multiplying the amount described in
4                subparagraph (B) of paragraph (1) of this
5                subsection by a fraction, the numerator of
6                which is the total receipts included in the
7                numerator pursuant to items (i) through (vii)
8                of this subparagraph (3) and the denominator
9                of which is all total receipts included in the
10                denominator, other than interest, dividends,
11                net gains (but not less than zero), and other
12                income from investment assets and activities
13                and trading assets and activities.
14        (4) (Blank).
15        (5) (Blank).
16    (c-1) Federally regulated exchanges. For taxable years
17ending on or after December 31, 2012, business income of a
18federally regulated exchange shall, at the option of the
19federally regulated exchange, be apportioned to this State by
20multiplying such income by a fraction, the numerator of which
21is its business income from sources within this State, and the
22denominator of which is its business income from all sources.
23For purposes of this subsection, the business income within
24this State of a federally regulated exchange is the sum of the
25following:
26        (1) Receipts attributable to transactions executed on

 

 

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1    a physical trading floor if that physical trading floor is
2    located in this State.
3        (2) Receipts attributable to all other matching,
4    execution, or clearing transactions, including without
5    limitation receipts from the provision of matching,
6    execution, or clearing services to another entity,
7    multiplied by (i) for taxable years ending on or after
8    December 31, 2012 but before December 31, 2013, 63.77%;
9    and (ii) for taxable years ending on or after December 31,
10    2013, 27.54%.
11        (3) All other receipts not governed by subparagraphs
12    (1) or (2) of this subsection (c-1), to the extent the
13    receipts would be characterized as "sales in this State"
14    under item (3) of subsection (a) of this Section.
15    "Federally regulated exchange" means (i) a "registered
16entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
17or (C), (ii) an "exchange" or "clearing agency" within the
18meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
19entities regulated under any successor regulatory structure to
20the foregoing, and (iv) all taxpayers who are members of the
21same unitary business group as a federally regulated exchange,
22determined without regard to the prohibition in Section
231501(a)(27) of this Act against including in a unitary
24business group taxpayers who are ordinarily required to
25apportion business income under different subsections of this
26Section; provided that this subparagraph (iv) shall apply only

 

 

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1if 50% or more of the business receipts of the unitary business
2group determined by application of this subparagraph (iv) for
3the taxable year are attributable to the matching, execution,
4or clearing of transactions conducted by an entity described
5in subparagraph (i), (ii), or (iii) of this paragraph.
6    In no event shall the Illinois apportionment percentage
7computed in accordance with this subsection (c-1) for any
8taxpayer for any tax year be less than the Illinois
9apportionment percentage computed under this subsection (c-1)
10for that taxpayer for the first full tax year ending on or
11after December 31, 2013 for which this subsection (c-1)
12applied to the taxpayer.
13    (d) Transportation services. For taxable years ending
14before December 31, 2008, business income derived from
15furnishing transportation services shall be apportioned to
16this State in accordance with paragraphs (1) and (2):
17        (1) Such business income (other than that derived from
18    transportation by pipeline) shall be apportioned to this
19    State by multiplying such income by a fraction, the
20    numerator of which is the revenue miles of the person in
21    this State, and the denominator of which is the revenue
22    miles of the person everywhere. For purposes of this
23    paragraph, a revenue mile is the transportation of 1
24    passenger or 1 net ton of freight the distance of 1 mile
25    for a consideration. Where a person is engaged in the
26    transportation of both passengers and freight, the

 

 

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1    fraction above referred to shall be determined by means of
2    an average of the passenger revenue mile fraction and the
3    freight revenue mile fraction, weighted to reflect the
4    person's
5            (A) relative railway operating income from total
6        passenger and total freight service, as reported to
7        the Interstate Commerce Commission, in the case of
8        transportation by railroad, and
9            (B) relative gross receipts from passenger and
10        freight transportation, in case of transportation
11        other than by railroad.
12        (2) Such business income derived from transportation
13    by pipeline shall be apportioned to this State by
14    multiplying such income by a fraction, the numerator of
15    which is the revenue miles of the person in this State, and
16    the denominator of which is the revenue miles of the
17    person everywhere. For the purposes of this paragraph, a
18    revenue mile is the transportation by pipeline of 1 barrel
19    of oil, 1,000 cubic feet of gas, or of any specified
20    quantity of any other substance, the distance of 1 mile
21    for a consideration.
22        (3) For taxable years ending on or after December 31,
23    2008, business income derived from providing
24    transportation services other than airline services shall
25    be apportioned to this State by using a fraction, (a) the
26    numerator of which shall be (i) all receipts from any

 

 

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1    movement or shipment of people, goods, mail, oil, gas, or
2    any other substance (other than by airline) that both
3    originates and terminates in this State, plus (ii) that
4    portion of the person's gross receipts from movements or
5    shipments of people, goods, mail, oil, gas, or any other
6    substance (other than by airline) that originates in one
7    state or jurisdiction and terminates in another state or
8    jurisdiction, that is determined by the ratio that the
9    miles traveled in this State bears to total miles
10    everywhere and (b) the denominator of which shall be all
11    revenue derived from the movement or shipment of people,
12    goods, mail, oil, gas, or any other substance (other than
13    by airline). Where a taxpayer is engaged in the
14    transportation of both passengers and freight, the
15    fraction above referred to shall first be determined
16    separately for passenger miles and freight miles. Then an
17    average of the passenger miles fraction and the freight
18    miles fraction shall be weighted to reflect the
19    taxpayer's:
20            (A) relative railway operating income from total
21        passenger and total freight service, as reported to
22        the Surface Transportation Board, in the case of
23        transportation by railroad; and
24            (B) relative gross receipts from passenger and
25        freight transportation, in case of transportation
26        other than by railroad.

 

 

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1        (4) For taxable years ending on or after December 31,
2    2008, business income derived from furnishing airline
3    transportation services shall be apportioned to this State
4    by multiplying such income by a fraction, the numerator of
5    which is the revenue miles of the person in this State, and
6    the denominator of which is the revenue miles of the
7    person everywhere. For purposes of this paragraph, a
8    revenue mile is the transportation of one passenger or one
9    net ton of freight the distance of one mile for a
10    consideration. If a person is engaged in the
11    transportation of both passengers and freight, the
12    fraction above referred to shall be determined by means of
13    an average of the passenger revenue mile fraction and the
14    freight revenue mile fraction, weighted to reflect the
15    person's relative gross receipts from passenger and
16    freight airline transportation.
17    (e) Combined apportionment. Where 2 or more persons are
18engaged in a unitary business as described in subsection
19(a)(27) of Section 1501, a part of which is conducted in this
20State by one or more members of the group, the business income
21attributable to this State by any such member or members shall
22be apportioned by means of the combined apportionment method.
23    (f) Alternative allocation. If the allocation and
24apportionment provisions of subsections (a) through (e) and of
25subsection (h) do not, for taxable years ending before
26December 31, 2008, fairly represent the extent of a person's

 

 

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1business activity in this State, or, for taxable years ending
2on or after December 31, 2008, fairly represent the market for
3the person's goods, services, or other sources of business
4income, the person may petition for, or the Director may,
5without a petition, permit or require, in respect of all or any
6part of the person's business activity, if reasonable:
7        (1) Separate accounting;
8        (2) The exclusion of any one or more factors;
9        (3) The inclusion of one or more additional factors
10    which will fairly represent the person's business
11    activities or market in this State; or
12        (4) The employment of any other method to effectuate
13    an equitable allocation and apportionment of the person's
14    business income.
15    (g) Cross reference. For allocation of business income by
16residents, see Section 301(a).
17    (h) For tax years ending on or after December 31, 1998, the
18apportionment factor of persons who apportion their business
19income to this State under subsection (a) shall be equal to:
20        (1) for tax years ending on or after December 31, 1998
21    and before December 31, 1999, 16 2/3% of the property
22    factor plus 16 2/3% of the payroll factor plus 66 2/3% of
23    the sales factor;
24        (2) for tax years ending on or after December 31, 1999
25    and before December 31, 2000, 8 1/3% of the property
26    factor plus 8 1/3% of the payroll factor plus 83 1/3% of

 

 

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1    the sales factor;
2        (3) for tax years ending on or after December 31,
3    2000, the sales factor.
4If, in any tax year ending on or after December 31, 1998 and
5before December 31, 2000, the denominator of the payroll,
6property, or sales factor is zero, the apportionment factor
7computed in paragraph (1) or (2) of this subsection for that
8year shall be divided by an amount equal to 100% minus the
9percentage weight given to each factor whose denominator is
10equal to zero.
11(Source: P.A. 101-31, eff. 6-28-19; 101-585, eff. 8-26-19;
12102-40, eff. 6-25-21; 102-558, eff. 8-20-21.)
 
13
ARTICLE 90.

 
14    Section 90-5. The Illinois Income Tax Act is amended by
15changing Sections 218 and 227 as follows:
 
16    (35 ILCS 5/218)
17    Sec. 218. Credit for student-assistance contributions.
18    (a) For taxable years ending on or after December 31, 2009
19and on or before December 31, 2029 2024, each taxpayer who,
20during the taxable year, makes a contribution (i) to a
21specified individual College Savings Pool Account under
22Section 16.5 of the State Treasurer Act or (ii) to the Illinois
23Prepaid Tuition Trust Fund in an amount matching a

 

 

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1contribution made in the same taxable year by an employee of
2the taxpayer to that Account or Fund is entitled to a credit
3against the tax imposed under subsections (a) and (b) of
4Section 201 in an amount equal to 25% of that matching
5contribution, but not to exceed $500 per contributing employee
6per taxable year.
7    (b) For taxable years ending before December 31, 2023, for
8partners, shareholders of Subchapter S corporations, and
9owners of limited liability companies, if the liability
10company is treated as a partnership for purposes of federal
11and State income taxation, there is allowed a credit under
12this Section to be determined in accordance with the
13determination of income and distributive share of income under
14Sections 702 and 704 and Subchapter S of the Internal Revenue
15Code. For taxable years ending on or after December 31, 2023,
16partners and shareholders of subchapter S corporations are
17entitled to a credit under this Section as provided in Section
18251.
19    (c) The credit may not be carried back. If the amount of
20the credit exceeds the tax liability for the year, the excess
21may be carried forward and applied to the tax liability of the
225 taxable years following the excess credit year. The tax
23credit shall be applied to the earliest year for which there is
24a tax liability. If there are credits for more than one year
25that are available to offset a liability, the earlier credit
26shall be applied first.

 

 

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1    (d) A taxpayer claiming the credit under this Section must
2maintain and record any information that the Illinois Student
3Assistance Commission, the Office of the State Treasurer, or
4the Department may require regarding the matching contribution
5for which the credit is claimed.
6(Source: P.A. 102-289, eff. 8-6-21; 103-396, eff. 1-1-24.)
 
7    (35 ILCS 5/227)
8    Sec. 227. Adoption credit.
9    (a) Beginning with tax years ending on or after December
1031, 2018 and ending with tax years ending on or before December
1131, 2029, in the case of an individual taxpayer there shall be
12allowed a credit against the tax imposed by subsections (a)
13and (b) of Section 201 in an amount equal to the amount of the
14federal adoption tax credit received pursuant to Section 23 of
15the Internal Revenue Code with respect to the adoption of a
16qualifying dependent child, subject to the limitations set
17forth in this subsection and subsection (b). The aggregate
18amount of qualified adoption expenses which may be taken into
19account under this Section for all taxable years with respect
20to the adoption of a qualifying dependent child by the
21taxpayer shall not exceed $2,000 ($1,000 in the case of a
22married individual filing a separate return). The credit under
23this Section shall be allowed: (i) in the case of any expense
24paid or incurred before the taxable year in which such
25adoption becomes final, for the taxable year following the

 

 

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1taxable year during which such expense is paid or incurred,
2and (ii) in the case of an expense paid or incurred during or
3after the taxable year in which such adoption becomes final,
4for the taxable year in which such expense is paid or incurred.
5No credit shall be allowed under this Section for any expense
6to the extent that funds for such expense are received under
7any federal, State, or local program. For purposes of this
8Section, spouses filing a joint return shall be considered one
9taxpayer.
10    For a non-resident or part-year resident, the amount of
11the credit under this Section shall be in proportion to the
12amount of income attributable to this State.
13    (b) Increased credit amount for resident children. With
14respect to the adoption of an eligible child who is at least
15one year old and resides in Illinois at the time the expenses
16are paid or incurred, subsection (a) shall be applied by
17substituting $5,000 ($2,500 in the case of a married
18individual filing a separate return) for $2,000.
19    (c) In no event shall a credit under this Section reduce
20the taxpayer's liability to less than zero. If the amount of
21the credit exceeds the income tax liability for the applicable
22tax year, the excess may be carried forward and applied to the
23tax liability of the 5 taxable years following the excess
24credit year. The credit shall be applied to the earliest year
25for which there is a tax liability. If there are credits from
26more than one year that are available to offset a liability,

 

 

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1the earlier credit shall be applied first.
2    (d) The term "qualified adoption expenses" shall have the
3same meaning as under Section 23(d) of the Internal Revenue
4Code.
5(Source: P.A. 100-587, eff. 6-4-18; 101-81, eff. 7-12-19.)
 
6
ARTICLE 93.

 
7    Section 93-1. Short title. This Act may be cited as the
8Ground-Based Sparkler Purchaser Excise Tax Act. References in
9this Article to "this Act" mean this Article.
 
10    Section 93-5. Definitions. As used in this Act:
11    "Affirmative act in furtherance of the evasion" means an
12act designed in whole or in part to (i) conceal, misrepresent,
13falsify, or manipulate any material fact or (ii) tamper with
14or destroy documents or materials related to a person's tax
15liability under this Act.
16    "Automated sales suppression device" or "zapper" means a
17software program that falsifies the electronic records of an
18electronic cash register or other point-of-sale system,
19including, but not limited to, transaction data and
20transaction reports. "Automated sales suppression device" or
21"zapper" includes the software program, any device that
22carries the software program, or an Internet link to the
23software program.

 

 

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1    "Consumer distributor" means any person who distributes,
2offers for sale, sells, or exchanges for consideration
3consumer fireworks in this State to another distributor or
4directly to any retailer or person for resale.
5    "Consumer retailer" means any person who offers for sale,
6sells, or exchanges for consideration consumer fireworks in
7this State directly to any person with a consumer display
8permit.
9    "Department" means the Department of Revenue.
10    "Director" means the Director of Revenue.
11    "Electronic cash register" means a device that keeps a
12register or supporting documents through the use of an
13electronic device or computer system designed to record
14transaction data for the purpose of computing, compiling, or
15processing retail sales transaction data in any manner.
16    "Ground-based sparkler retailer" means any person that
17transfers the ownership of or title to ground-based sparklers
18to a purchaser, for the purpose of use, and not for the purpose
19of resale, for a valuable consideration.
20    "Ground-based sparkler" means any ground-based sparkler
21that (i) is nonexplosive and nonaerial, (ii) may produce a
22crackling or whistling effect, and (iii) contains 75 grams or
23less of pyrotechnic composition per tube or a total of 500
24grams or less for multiple tubes, such as cones, including
25showers of sparks, fountains, repeaters, and cakes.
26    "Person" means a natural individual, firm, partnership,

 

 

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1association, joint stock company, joint adventure, public or
2private corporation, limited liability company, or a receiver,
3executor, trustee, guardian, or other representative appointed
4by order of any court.
5    "Phantom-ware" means a hidden programming option embedded
6in the operating system of an electronic cash register or
7hardwired into an electronic cash register that can be used to
8create a second set of records or that can eliminate or
9manipulate transaction records in an electronic cash register.
10    "Purchase price" means the consideration paid for a
11purchase of ground-based sparklers, valued in money, whether
12received in money or otherwise, including cash, gift cards,
13credits, and property and shall be determined without any
14deduction on account of the cost of materials used, labor or
15service costs, or any other expense whatsoever. "Purchase
16price" does not include consideration paid for:
17        (1) any charge for a payment that is not honored by a
18    financial institution;
19        (2) any finance or credit charge, penalty or charge
20    for delayed payment, or discount for prompt payment; and
21        (3) any amounts added to a purchaser's bill because of
22    charges made under the tax imposed by this Act, the
23    Retailers' Occupation Tax Act, the Use Tax Act, the
24    Service Occupation Tax Act, the Service Use Tax Act, or
25    any locally imposed occupation or use tax.
26    "Purchaser" means a person who, through a sale at retail,

 

 

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1acquires ground-based sparklers for a valuable consideration.
2    "Taxpayer" means a ground-based sparkler retailer who is
3required to collect the tax imposed under this Act.
4    "Transaction data" includes: items purchased by a
5purchaser; the price of each item; a taxability determination
6for each item; a segregated tax amount for each taxed item; the
7amount of cash or credit tendered; the net amount returned to
8the customer in change; the date and time of the purchase; the
9name, address, and identification number of the vendor; and
10the receipt or invoice number of the transaction.
11    "Transaction report" means a report that documents,
12without limitation, the sales, taxes, or fees collected, media
13totals, and discount voids at an electronic cash register and
14that is printed on a cash register tape at the end of a day or
15shift, or a report that documents every action at an
16electronic cash register and is stored electronically.
 
17    Section 93-10. Tax imposed.
18    (a) Beginning January 1, 2025, a tax is imposed upon
19purchasers for the privilege of using ground-based sparklers
20and not for the purpose of resale at the rate of 3% of the
21purchase price of ground-based sparklers.
22    (b) The tax imposed under this Act shall be in addition to
23all other occupation, privilege, or excise taxes imposed by
24the State or by any municipal corporation or political
25subdivision thereof.

 

 

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1    (c) The tax imposed under this Act shall not be imposed on
2any purchase by a purchaser if the ground-based sparkler
3retailer is prohibited by federal or State Constitution,
4treaty, convention, statute, or court decision from collecting
5the tax from the purchaser.
 
6    Section 93-15. Bundling of taxable and nontaxable items;
7prohibition; taxation. A ground-based sparkler retailer is
8prohibited from selling ground-based sparkler products in
9combination or bundled with any other items not subject to tax
10under this Act for one price, and each ground-based sparkler
11must be separately identified by quantity and price on the
12receipt.
13    If a ground-based sparkler retailer sells ground-based
14sparkler products in combination or bundled with items that
15are not subject to tax under this Act for one price in
16violation of the prohibition on this activity, then the tax
17under this Act is imposed on the purchase price of the entire
18bundled product.
 
19    Section 93-20. Collection of tax.
20    (a) The tax imposed by this Act shall be collected from the
21purchaser by the ground-based sparkler retailer at the rate
22stated in Section 93-10 with respect to ground-based sparklers
23sold by the ground-based sparkler retailer to the purchaser
24and shall be remitted to the Department as provided in Section

 

 

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193-35. Ground-based sparkler retailers shall collect the tax
2from purchasers by adding the tax to the amount of the purchase
3price received from the purchaser for selling ground-based
4sparklers to the purchaser. The tax imposed by this Act shall,
5when collected, be stated as a distinct item separate and
6apart from the purchase price of the ground-based sparklers.
7    (b) If a ground-based sparkler retailer collects the
8ground-based sparkler purchaser excise tax measured by a
9purchase price that is not subject to the ground-based
10sparkler purchaser excise tax, or if a ground-based sparkler
11retailer, in collecting the ground-based sparkler purchaser
12excise tax measured by a purchase price that is subject to tax
13under this Act, collects more from the purchaser than the
14required amount of the ground-based sparkler purchaser excise
15tax on the transaction, the purchaser shall have a legal right
16to claim a refund of that amount from the ground-based
17sparkler retailer. If, however, that amount is not refunded to
18the purchaser for any reason, the ground-based sparkler
19retailer is liable to pay that amount to the Department.
20    (c) Any person purchasing ground-based sparklers subject
21to tax under this Act as to which there has been no charge made
22to them of the tax imposed by Section 93-10 shall make payment
23of the tax imposed by Section 93-10 in the form and manner
24provided by the Department not later than the 20th day of the
25month following the month of purchase of the ground-based
26sparklers.
 

 

 

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1    Section 93-25. Registration of ground-based sparkler
2retailers. Every ground-based sparkler retailer required to
3collect the tax under this Act shall apply to the Department
4for a certificate of registration under this Act. All
5applications for registration under this Act shall be made by
6electronic means in the form and manner required by the
7Department. For that purpose, the provisions of Section 2a of
8the Retailers' Occupation Tax Act are incorporated into this
9Act to the extent not inconsistent with this Act. In addition,
10no certificate of registration shall be issued under this Act
11unless the applicant is licensed under the Retailers'
12Occupation Tax Act.
 
13    Section 93-30. Tax collected as debt owed to State. Any
14ground-based sparkler retailer required to collect the tax
15imposed by this Act shall be liable to the Department for the
16tax, whether the tax has been collected by the ground-based
17sparkler retailer, and any such tax shall constitute a debt
18owed by the ground-based sparkler retailer to the State. To
19the extent that a ground-based sparkler retailer is required
20to collect the tax imposed by this Act has actually collected
21that tax, the tax is held in trust for the benefit of the
22Department.
 
23    Section 93-35. Return and payment of tax by ground-based

 

 

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1sparkler retailer. Each ground-based sparkler retailer that is
2required or authorized to collect the tax imposed by this Act
3shall make a return to the Department, by electronic means, on
4or before the 20th day of each month for the preceding calendar
5month stating:
6        (1) the ground-based sparkler retailer's name;
7        (2) the address of the ground-based sparkler
8    retailer's principal place of business and the address of
9    the principal place of business, if that is a different
10    address, from which the ground-based sparkler retailer is
11    engaged in the business of selling ground-based sparklers
12    subject to tax under this Act;
13        (3) the total purchase price received by the
14    ground-based sparkler retailer for ground-based sparklers
15    subject to tax under this Act;
16        (4) the amount of tax due at each rate;
17        (5) the signature of the ground-based sparkler
18    retailer; and
19        (6) any other information as the Department may
20    reasonably require.
21    All returns required to be filed and payments required to
22be made under this Act shall be by electronic means.
23Ground-based sparkler retailers who demonstrate hardship in
24paying electronically may petition the Department to waive the
25electronic payment requirement.
26    Any amount that is required to be shown or reported on any

 

 

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1return or other document under this Act shall, if the amount is
2not a whole-dollar amount, be increased to the nearest
3whole-dollar amount if the fractional part of a dollar is
4$0.50 or more and decreased to the nearest whole-dollar amount
5if the fractional part of a dollar is less than $0.50. If a
6total amount of less than $1 is payable, refundable, or
7creditable, the amount shall be disregarded if it is less than
8$0.50 and shall be increased to $1 if it is $0.50 or more.
9    The ground-based sparkler retailer making the return under
10this Section shall also pay to the Department the amount of tax
11imposed by this Act, less a discount of 1.75% not to exceed
12$1,000 per return period, which is allowed to reimburse the
13ground-based sparkler retailer for the expenses incurred in
14keeping records, collecting tax, preparing and filing returns,
15remitting the tax, and supplying data to the Department upon
16request. No discount may be claimed by a ground-based sparkler
17retailer on returns not timely filed and for taxes not timely
18remitted. No discount may be claimed by a taxpayer for any
19return that is not filed electronically. No discount may be
20claimed by a taxpayer for any payment that is not made
21electronically, unless a waiver has been granted under this
22Section.
23    Notwithstanding any other provision of this Act concerning
24the time within which a ground-based sparkler retailer may
25file a return, any such ground-based sparkler retailer who
26ceases to engage in the kind of business that makes the person

 

 

10300HB4951sam002- 911 -LRB103 38094 HLH 74177 a

1responsible for filing returns under this Act shall file a
2final return under this Act with the Department within one
3month after discontinuing the business.
4    If any payment provided for in this Section exceeds the
5taxpayer's liabilities under this Act, as shown on an original
6monthly return, the Department shall, if requested by the
7taxpayer, issue to the taxpayer a credit memorandum no later
8than 30 days after the date of payment. The credit evidenced by
9the credit memorandum may be assigned by the taxpayer to a
10similar taxpayer under this Act, in accordance with reasonable
11rules adopted by the Department. If no such request is made,
12the taxpayer may credit the excess payment against tax
13liability subsequently to be remitted to the Department under
14this Act, in accordance with reasonable rules adopted by the
15Department. If the Department subsequently determines that all
16or any part of the credit taken was not actually due to the
17taxpayer, the taxpayer's discount shall be reduced, if
18necessary, to reflect the difference between the credit taken
19and that actually due, and that taxpayer shall be liable for
20penalties and interest on the difference. If a ground-based
21sparkler retailer fails to sign a return within 30 days after
22the proper notice and demand for signature by the Department
23is received by the ground-based sparkler retailer, the return
24shall be considered valid and any amount shown to be due on the
25return shall be deemed assessed.
 

 

 

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1    Section 93-40. Deposit of proceeds. From the revenue
2collected under Section 93-10, the Department shall pay 25%
3into the Firemen's Annuity and Benefit Fund, 25% into the
4Firefighters' Pension Investment Fund, and 50% into the
5General Revenue Fund.
 
6    Section 93-45. Record keeping; books and records.
7    (a) Every ground-based sparkler retailer, whether the
8ground-based sparkler retailer has obtained a certificate of
9registration under Section 93-25, shall keep complete and
10accurate records of ground-based sparklers held, purchased,
11sold, or otherwise disposed of, and shall preserve and keep
12all invoices, bills of lading, sales records, and copies of
13bills of sale, returns, and other pertinent papers and
14documents relating to the purchase, sale, or disposition of
15ground-based sparklers. Such records need not be maintained on
16the licensed premises but must be maintained in the State.
17However, all original invoices or copies thereof covering
18purchases of ground-based sparklers must be retained on the
19licensed premises for a period of 90 days after such purchase,
20unless the Department has granted a waiver in response to a
21written request in cases where records are kept at a central
22business location within the State. The Department shall adopt
23rules regarding the eligibility for a waiver, revocation of a
24waiver, and requirements and standards for maintenance and
25accessibility of records located at a central location under a

 

 

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1waiver provided under this Section.
2    (b) Books, records, papers, and documents that are
3required by this Act to be kept shall, at all times during the
4usual business hours of the day, be subject to inspection by
5the Department or its duly authorized agents and employees.
6The books, records, papers, and documents for any period with
7respect to which the Department is authorized to issue a
8notice of tax liability shall be preserved until the
9expiration of that period.
 
10    Section 93-50. Violations and penalties.
11    (a) If the amount due is under $300, any ground-based
12sparkler retailer who fails to file a return, willfully fails
13or refuses to make any payment to the Department of the tax
14imposed by this Act, or files a fraudulent return, or any
15officer or agent of a corporation engaged in the business of
16selling ground-based sparklers to purchasers located in this
17State who signs a fraudulent return filed on behalf of the
18corporation, or any accountant or other agent who knowingly
19enters false information on the return of any taxpayer under
20this Act is guilty of a Class 4 felony.
21    (b) If the amount due is $300 or more, any ground-based
22sparkler retailer who files, or causes to be filed, a
23fraudulent return, or any officer or agent of a corporation
24engaged in the business of selling ground-based sparklers to
25purchasers located in this State who files or causes to be

 

 

10300HB4951sam002- 914 -LRB103 38094 HLH 74177 a

1filed or signs or causes to be signed a fraudulent return filed
2on behalf of the corporation, or any accountant or other agent
3who knowingly enters false information on the return of any
4taxpayer under this Act is guilty of a Class 3 felony.
5    (c) Any person who violates any provision of Section
693-30, fails to keep books and records as required under this
7Act, or willfully violates a rule of the Department for the
8administration and enforcement of this Act is guilty of a
9Class 4 felony. A person commits a separate offense on each day
10that the person engages in business in violation of Section
1193-30 or a rule of the Department for the administration and
12enforcement of this Act. If a person fails to produce the books
13and records for inspection by the Department upon request, a
14prima facie presumption shall arise that the person has failed
15to keep books and records as required under this Act. A person
16who is unable to rebut this presumption is in violation of this
17Act and is subject to the penalties provided in this Section.
18    (d) Any person who willfully violates a rule of the
19Department for the administration and enforcement of this
20Article, is guilty of a business offense and may be fined up to
21$5,000.
22    (e) Any taxpayer or agent of a taxpayer who with the intent
23to defraud purports to make a payment due to the Department by
24issuing or delivering a check or other order upon a real or
25fictitious depository for the payment of money, knowing that
26it will not be paid by the depository, is guilty of a deceptive

 

 

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1practice in violation of Section 17-1 of the Criminal Code of
22012.
3    (f) Any person who fails to keep books and records or fails
4to produce books and records for inspection, as required by
5Section 93-45, is liable to pay to the Department, for deposit
6in the Tax Compliance and Administration Fund, a penalty of
7$1,000 for the first failure to keep books and records or
8failure to produce books and records for inspection, as
9required by Section 93-45, and $3,000 for each subsequent
10failure to keep books and records or failure to produce books
11and records for inspection, as required by Section 93-45.
12    (g) Any person who knowingly acts as a ground-based
13sparkler retailer in this State without first having obtained
14a certificate of registration to do so in compliance with
15Section 93-30 shall be guilty of a Class 4 felony.
16    (h) A person commits the offense of tax evasion under this
17Act when a person knowingly attempts in any manner to evade or
18defeat the tax imposed on the person or on any other person, or
19the payment thereof, and a person commits an affirmative act
20in furtherance of the evasion.
21    Two or more acts of sales tax evasion may be charged as a
22single count in any indictment, information, or complaint and
23the amount of tax deficiency may be aggregated for purposes of
24determining the amount of tax that is attempted to be or is
25evaded and the period between the first and last acts may be
26alleged as the date of the offense.

 

 

10300HB4951sam002- 916 -LRB103 38094 HLH 74177 a

1        (1) If the amount of tax, the assessment or payment of
2    which is attempted to be or is evaded is less than $500, a
3    person is guilty of a Class 4 felony.
4        (2) If the amount of tax, the assessment or payment of
5    which is attempted to be or is evaded is $500 or more but
6    less than $10,000, a person is guilty of a Class 3 felony.
7        (3) If the amount of tax, the assessment or payment of
8    which is attempted to be or is evaded is $10,000 or more
9    but less than $100,000, a person is guilty of a Class 2
10    felony.
11        (4) If the amount of tax, the assessment or payment of
12    which is attempted to be or is evaded is $100,000 or more,
13    a person is guilty of a Class 1 felony.
14    Any person who knowingly sells, purchases, installs,
15transfers, possesses, uses, or accesses any automated sales
16suppression device, zapper, or phantom-ware in this State is
17guilty of a Class 3 felony.
18    A prosecution for any act in violation of this Section may
19be commenced at any time within 5 years of the commission of
20that act.
21    (i) The Department may adopt rules to administer the
22penalties under this Section.
23    (j) Any person whose principal place of business is in
24this State and who is charged with a violation under this
25Section shall be tried in the county where the person's
26principal place of business is located unless the person

 

 

10300HB4951sam002- 917 -LRB103 38094 HLH 74177 a

1asserts a right to be tried in another venue.
2    (k) Except as otherwise provided in subsection (h), a
3prosecution for a violation described in this Section may be
4commenced within 3 years after the commission of the act
5constituting the violation.
 
6    Section 93-55. Department administration and enforcement.
7The Department shall have full power to administer and enforce
8this Act, to collect all taxes and penalties due hereunder, to
9dispose of taxes and penalties so collected in the manner
10hereinafter provided, and to determine all rights to credit
11memoranda, arising on account of the erroneous payment of tax
12or penalty hereunder.
13    In the administration of, and compliance with, this Act,
14the Department and persons who are subject to this Act shall
15have the same rights, remedies, privileges, immunities,
16powers, and duties, and be subject to the same conditions,
17restrictions, limitations, penalties, and definitions of
18terms, and employ the same modes of procedure, as are
19prescribed in Sections 2, 3-55, 3a, 4, 5, 7, 10a, 11, 12a, 12b,
2014, 15, 19, 20, 21, and 22 of the Use Tax Act and Sections 1,
212-12, 2b, 4 (except that the time limitation provisions shall
22run from the date when the tax is due rather than from the date
23when gross receipts are received), 5 (except that the time
24limitation provisions on the issuance of notices of tax
25liability shall run from the date when the tax is due rather

 

 

10300HB4951sam002- 918 -LRB103 38094 HLH 74177 a

1than from the date when gross receipts are received and except
2that in the case of a failure to file a return required by this
3Act, no notice of tax liability shall be issued on and after
4each July 1 and January 1 covering tax due with that return
5during any month or period more than 6 years before that July 1
6or January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i,
75j, 6d, 7, 8, 9, 10, 11, and 12 of the Retailers' Occupation
8Tax Act and all of the provisions of the Uniform Penalty and
9Interest Act, which are not inconsistent with this Act, as
10fully as if those provisions were set forth herein. References
11in the incorporated Sections of the Retailers' Occupation Tax
12Act and the Use Tax Act to retailers, to sellers, or to persons
13engaged in the business of selling tangible personal property
14mean ground-based sparkler retailers when used in this Act.
15References in the incorporated Sections to sales of tangible
16personal property mean sales of ground-based sparklers subject
17to tax under this Act when used in this Act.
 
18    Section 93-60. Arrest; search and seizure without warrant.
19Any duly authorized employee of the Department (i) may arrest,
20without warrant, any person committing in their presence a
21violation of any of the provisions of this Act, (ii) may,
22without a search warrant, inspect all ground-based sparklers
23located in any place of the business, and (iii) may seize any
24ground-based sparklers in the possession of the ground-based
25sparkler retailer in violation of this Act. The ground-based

 

 

10300HB4951sam002- 919 -LRB103 38094 HLH 74177 a

1sparklers so seized are subject to confiscation and forfeiture
2as provided in Sections 93-65 and 93-70.
 
3    Section 93-65. Seizure and forfeiture. After seizing any
4ground-based sparklers as provided in Section 93-60, the
5Department must hold a hearing and determine whether (i) the
6ground-based sparkler retailer was properly registered to sell
7the ground-based sparklers, (ii) the ground-based sparkler
8retailer possessed the ground-based sparklers in violation of
9this Act, or (iii) the ground-based sparkler retailer
10possessed the ground-based sparklers in violation of any
11reasonable rule adopted by the Department for the enforcement
12of this Act at the time of its seizure by the Department. The
13Department shall give not less than 20 days' notice of the time
14and place of the hearing to the owner of the ground-based
15sparklers, if the owner is known, and also to the person in
16whose possession the ground-based sparklers were found, if
17that person is known and if the person in possession is not the
18owner of the ground-based sparklers. If neither the owner nor
19the person in possession of the ground-based sparklers is
20known, the Department must cause publication of the time and
21place of the hearing to be made at least once in each week for
223 weeks successively in a newspaper of general circulation in
23the county where the hearing is to be held.
24    If, as the result of the hearing, the Department makes any
25of the findings listed in (i) through (iii) above, the

 

 

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1Department must enter an order declaring the ground-based
2sparklers confiscated and forfeited to the State, to be held
3by the Department for disposal by it as provided in Section
493-70. The Department must give notice of the order to the
5owner of the ground-based sparklers, if the owner is known,
6and also to the person in whose possession the ground-based
7sparklers were found, if that person is known and if the person
8in possession is not the owner of the ground-based sparklers.
9If neither the owner nor the person in possession of the
10ground-based sparklers is known, the Department must cause
11publication of the order to be made at least once in each week
12for 3 weeks successively in a newspaper of general circulation
13in the county where the hearing was held.
 
14    Section 93-70. Search warrant; issuance and return;
15process; confiscation of ground-based sparklers; forfeitures.
16    (a) If a peace officer of this State or any duly authorized
17officer or employee of the Department has reason to believe
18that any violation of this Act or a rule of the Department for
19the administration and enforcement of this Act has occurred
20and that the person violating this Act or rule has in that
21person's possession any ground-based sparklers in violation of
22this Act or a rule of the Department for the administration and
23enforcement of this Act, that peace officer or officer or
24employee of the Department may file or cause to be filed a
25complaint in writing, verified by affidavit, with any court

 

 

10300HB4951sam002- 921 -LRB103 38094 HLH 74177 a

1within whose jurisdiction the premises to be searched are
2situated, stating the facts upon which the belief is founded,
3the premises to be searched, and the property to be seized, and
4procure a search warrant and execute that warrant. Upon the
5execution of the search warrant, the peace officer, or officer
6or employee of the Department, executing the search warrant
7shall make due return of the warrant to the court issuing the
8warrant, together with an inventory of the property taken
9under the warrant. The court must then issue process against
10the owner of the property if the owner is known; otherwise,
11process must be issued against the person in whose possession
12the property is found, if that person is known. In case of
13inability to serve process upon the owner or the person in
14possession of the property at the time of its seizure, notice
15of the proceedings before the court must be given in the same
16manner as required by the law governing cases of attachment.
17Upon the return of the process duly served or upon the posting
18or publishing of notice made, as appropriate, the court or
19jury, if a jury is demanded, shall proceed to determine
20whether the property so seized was held or possessed in
21violation of this Act or a rule of the Department for the
22administration and enforcement of this Act. If a violation is
23found, judgment shall be entered confiscating the property and
24forfeiting it to the State and ordering its delivery to the
25Department. In addition, the court may tax and assess the
26costs of the proceedings.

 

 

10300HB4951sam002- 922 -LRB103 38094 HLH 74177 a

1    (b) If any ground-based sparklers have been declared
2forfeited to the State by the Department and all proceedings
3for the judicial review of the Department's decision have
4terminated, the Department shall, to the extent that its
5decision is sustained on review, destroy such ground-based
6sparklers.
 
7    Section 93-75. Rulemaking. The Department may adopt rules
8in accordance with the Illinois Administrative Procedure Act
9and prescribe forms relating to the administration and
10enforcement of this Act as it deems appropriate.
 
11    Section 93-900. The Fireworks Regulation Act of Illinois
12is amended by changing Sections 2, 3.5, and 24 and by adding
13Section 3.6 as follows:
 
14    (425 ILCS 30/2)  (from Ch. 127 1/2, par. 102)
15    Sec. 2. The following words and phrases, when used in this
16Act, shall for the purpose of this Act have the following
17definition and meaning:
18    (a) The term "fireworks" shall mean and include any
19explosive composition or any substance or combination of
20substances, or article prepared for the purpose of producing a
21visible or audible effect of a temporary exhibitional nature
22by explosion, combustion, deflagration, or detonation, and
23shall include blank cartridges, toy cannons in which

 

 

10300HB4951sam002- 923 -LRB103 38094 HLH 74177 a

1explosives are used, the type of balloons which require fire
2underneath to propel the same, firecrackers, torpedoes, sky
3rockets, Roman candles, bombs or other fireworks of like
4construction, and any fireworks containing any explosive
5compound; or any tablets or other device containing any
6explosive substance, or containing combustible substances
7producing visual effects. The term "fireworks" shall not
8include snake or glow worm pellets; smoke devices; sparklers;
9ground-based sparklers that (i) are nonexplosive and
10nonaerial, (ii) may produce a crackling or whistling effect,
11and (iii) contain 75 grams or less of pyrotechnic composition
12per tube or a total of 500 grams or less for multiple tubes,
13such as cones, including showers of sparks, fountains,
14repeaters, and cakes; trick noisemakers known as "party
15poppers", "booby traps", "snappers", "trick matches",
16"cigarette loads", and "auto burglar alarms"; toy pistols, toy
17canes, toy guns, or other devices in which paper or plastic
18caps containing twenty-five hundredths grains or less of
19explosive compound are used, provided they are so constructed
20that the hand cannot come in contact with the cap when in place
21for the explosion; and toy pistol paper or plastic caps which
22contain less than twenty-five hundredths grains of explosive
23mixture; the sale and use of which shall be permitted at all
24times.
25    (b) The term "fireworks plant" shall mean and include all
26lands, with buildings thereon, used in connection with the

 

 

10300HB4951sam002- 924 -LRB103 38094 HLH 74177 a

1manufacture or processing of fireworks, as well as storehouses
2located thereon for the storage of finished fireworks.
3    (c) The term "fireworks factory building" shall mean any
4building or other structure in which the manufacture of
5fireworks, or in which any processing involving fireworks is
6carried on.
7    (d) The term "magazine" shall mean any building or other
8structure used for the storage of explosive raw materials used
9in the manufacture of fireworks.
10    (e) The term "Office" shall mean the Office of the State
11Fire Marshal.
12(Source: P.A. 83-474.)
 
13    (425 ILCS 30/3.5)
14    Sec. 3.5. Sale and use prohibited on public property. A
15municipality may, by ordinance, prohibit the sale and use of
16sparklers or ground-based sparklers on public property.
17(Source: P.A. 92-93, eff. 1-1-02.)
 
18    (425 ILCS 30/3.6 new)
19    Sec. 3.6. Sale of ground-based sparklers. No ground-based
20sparkler that (i) is nonexplosive and nonaerial, (ii) may
21produce a crackling or whistling effect, and (iii) contains 75
22grams or less of pyrotechnic composition per tube or a total of
23500 grams or less for multiple tubes, such as cones, including
24showers of sparks, fountains, repeaters, and cakes, may be

 

 

10300HB4951sam002- 925 -LRB103 38094 HLH 74177 a

1sold to a person under the age of 18 years.
 
2    (425 ILCS 30/24)  (from Ch. 127 1/2, par. 124)
3    Sec. 24. The provisions of this Act shall not be construed
4or held to abrogate or in any way affect the power of cities,
5villages, and incorporated towns to regulate, restrain, and
6prohibit the use of fireworks, firecrackers, torpedoes, Roman
7candles, skyrockets, ground-based sparklers, and other
8pyrotechnic displays within their corporate limits. The
9sections of this Act and every part of such sections are hereby
10declared to be independent sections and parts of sections, and
11the invalidity of any section or part thereof shall not affect
12any other section or part of a section.
13(Source: Laws 1935, p. 881.)
 
14    Section 93-905. The Pyrotechnic Use Act is amended by
15changing Section 1 and by adding Section 3.5 as follows:
 
16    (425 ILCS 35/1)  (from Ch. 127 1/2, par. 127)
17    Sec. 1. Definitions. As used in this Act, the following
18words shall have the following meanings:
19    "1.3G fireworks" means those fireworks used for
20professional outdoor displays and classified as fireworks
21UN0333, UN0334, or UN0335 by the United States Department of
22Transportation under 49 C.F.R. 172.101.
23    "Consumer distributor" means any person who distributes,

 

 

10300HB4951sam002- 926 -LRB103 38094 HLH 74177 a

1offers for sale, sells, or exchanges for consideration
2consumer fireworks in Illinois to another distributor or
3directly to any retailer or person for resale.
4    "Consumer fireworks" means those fireworks that must
5comply with the construction, chemical composition, and
6labeling regulations of the U.S. Consumer Products Safety
7Commission, as set forth in 16 C.F.R. Parts 1500 and 1507, and
8classified as fireworks UN0336 or UN0337 by the United States
9Department of Transportation under 49 C.F.R. 172.101.
10"Consumer fireworks" shall not include snake or glow worm
11pellets; smoke devices; trick noisemakers known as "party
12poppers", "booby traps", "snappers", "trick matches",
13"cigarette loads", and "auto burglar alarms"; sparklers;
14ground-based sparklers that (i) are nonexplosive and
15nonaerial, (ii) may produce a crackling or whistling effect,
16and (iii) contain 75 grams or less of pyrotechnic composition
17per tube or a total of 500 grams or less for multiple tubes,
18such as cones, including showers of sparks, fountains,
19repeaters, and cakes; toy pistols, toy canes, toy guns, or
20other devices in which paper or plastic caps containing
21twenty-five hundredths grains or less of explosive compound
22are used, provided they are so constructed that the hand
23cannot come in contact with the cap when in place for the
24explosion; and toy pistol paper or plastic caps that contain
25less than twenty hundredths grains of explosive mixture; the
26sale and use of which shall be permitted at all times.

 

 

10300HB4951sam002- 927 -LRB103 38094 HLH 74177 a

1    "Consumer fireworks display" or "consumer display" means
2the detonation, ignition, or deflagration of consumer
3fireworks to produce a visual or audible effect.
4    "Consumer operator" means an adult individual who is
5responsible for the safety, setup, and discharge of the
6consumer fireworks display and who has completed the training
7required in Section 2.2 of this Act.
8    "Consumer retailer" means any person who offers for sale,
9sells, or exchanges for consideration consumer fireworks in
10Illinois directly to any person with a consumer display
11permit.
12    "Display fireworks" means 1.3G or special effects
13fireworks or as further defined in the Pyrotechnic Distributor
14and Operator Licensing Act.
15    "Flame effect" means the detonation, ignition, or
16deflagration of flammable gases, liquids, or special materials
17to produce a thermal, physical, visual, or audible effect
18before the public, invitees, or licensees, regardless of
19whether admission is charged, in accordance with National Fire
20Protection Association 160 guidelines, and as may be further
21defined in the Pyrotechnic Distributor and Operator Licensing
22Act.
23    "Lead pyrotechnic operator" means an individual who is
24responsible for the safety, setup, and discharge of the
25pyrotechnic display or pyrotechnic service and who is licensed
26pursuant to the Pyrotechnic Distributor and Operator Licensing

 

 

10300HB4951sam002- 928 -LRB103 38094 HLH 74177 a

1Act.
2    "Person" means an individual, firm, corporation,
3association, partnership, company, consortium, joint venture,
4commercial entity, state, municipality, or political
5subdivision of a state or any agency, department, or
6instrumentality of the United States and any officer, agent,
7or employee of these entities.
8    "Production company" means any person in the film, digital
9and video media, television, commercial, music, or theatrical
10stage industry who provides pyrotechnic services or
11pyrotechnic display services as part of a film, digital and
12video media, television, commercial, music, or theatrical
13production in the State of Illinois and is licensed by the
14Office pursuant to the Pyrotechnic Distributor and Operator
15Licensing Act.
16    "Pyrotechnic display" means the detonation, ignition, or
17deflagration of display fireworks or flame effects to produce
18visual or audible effects of an exhibitional nature before the
19public, invitees, or licensees, regardless of whether
20admission is charged, and as may be further defined in the
21Pyrotechnic Distributor and Operator Licensing Act.
22    "Pyrotechnic distributor" means any person who distributes
23display fireworks for sale in the State of Illinois or
24provides them as part of a pyrotechnic display service in the
25State of Illinois or provides only pyrotechnic services and is
26licensed by the Office pursuant to the Pyrotechnic Distributor

 

 

10300HB4951sam002- 929 -LRB103 38094 HLH 74177 a

1and Operator Licensing Act.
2    "Pyrotechnic service" means the detonation, ignition, or
3deflagration of display fireworks, special effects, or flame
4effects to produce a visual or audible effect.
5    "Special effects fireworks" means pyrotechnic devices used
6for special effects by professionals in the performing arts in
7conjunction with theatrical, musical, or other productions
8that are similar to consumer fireworks in chemical
9compositions and construction, but are not intended for
10consumer use and are not labeled as such or identified as
11"intended for indoor use". "Special effects fireworks" are
12classified as fireworks UN0431 or UN0432 by the United States
13Department of Transportation under 49 C.F.R. 172.101.
14(Source: P.A. 99-642, eff. 7-28-16.)
 
15    (425 ILCS 35/3.5 new)
16    Sec. 3.5. Sale of ground-based sparklers. No ground-based
17sparkler that (i) is nonexplosive and nonaerial, (ii) may
18produce a crackling or whistling effect, and (iii) contains 75
19grams or less of pyrotechnic composition per tube or a total of
20500 grams or less for multiple tubes, such as cones, including
21showers of sparks, fountains, repeaters, and cakes, may be
22sold to a person under the age of 18 years.
 
23
ARTICLE 95.

 

 

 

10300HB4951sam002- 930 -LRB103 38094 HLH 74177 a

1    Section 95-5. The Property Tax Code is amended by changing
2Section 20-130 as follows:
 
3    (35 ILCS 200/20-130)
4    Sec. 20-130. Distribution of taxes in counties of less
5than 3,000,000; return of erroneous distribution.
6    (a) All distributions of taxes collected and interest
7earned thereon by a county on behalf of taxing districts must
8be made by the county treasurer, in counties with less than
93,000,000 inhabitants, within 30 days after the due date and
10at 30 days intervals thereafter, unless the amount to be
11distributed is less than $5. The county treasurer shall
12distribute the taxes collected at the next 30-day interval if
13the taxes collected are $5 or more. If the tax collections for
14a taxing district are less than $5 for 3 consecutive 30-day
15intervals, the county treasurer shall automatically distribute
16the taxes collected to the unit of local government on the
17third 30-day interval. All interest earned by a county on
18behalf of taxing districts must be distributed by the county
19treasurer, in counties with less than 3,000,000 inhabitants,
20no later than the last distribution of taxes. The county
21treasurer shall determine the manner in which all
22distributions under this Section are to be made. The manner of
23distribution may include, but is not limited to, check or
24electronic funds transfer.
25    (b) Notwithstanding any other law to the contrary, if a

 

 

10300HB4951sam002- 931 -LRB103 38094 HLH 74177 a

1county makes an erroneous distribution of taxes collected and
2interest earned thereon, upon majority vote of the governing
3board of the taxing district that received the erroneous
4distribution, the taxing district shall return the funds to
5the county treasurer.
6(Source: P.A. 91-378, eff. 7-30-99.)
 
7
ARTICLE 100.

 
8    Section 100-5. The Illinois Income Tax Act is amended by
9adding Section 244 as follows:
 
10    (35 ILCS 5/244 new)
11    Sec. 244. Child tax credit.
12    (a) For the taxable years beginning on or after January 1,
132024, each individual taxpayer who has at least one qualifying
14child who is younger than 12 years of age as of the last day of
15the taxable year is entitled to a credit against the tax
16imposed by subsections (a) and (b) of Section 201. For tax
17years beginning on or after January 1, 2024 and before January
181, 2025, the credit shall be equal to 20% of the credit allowed
19to the taxpayer under Section 212 of this Act for that taxable
20year. For tax years beginning on or after January 1, 2025, the
21amount of the credit shall be equal to 40% of the credit
22allowed to the taxpayer under Section 212 of this Act for that
23taxable year.

 

 

10300HB4951sam002- 932 -LRB103 38094 HLH 74177 a

1    (b) If the amount of the credit exceeds the income tax
2liability for the applicable tax year, then the excess credit
3shall be refunded the taxpayer. The amount of the refund under
4this Section shall not be included in the taxpayer's income or
5resources for the purposes of determining eligibility or
6benefit level in any means-tested benefit program administered
7by a governmental entity unless required by federal law.
8    (c) The Department may adopt rules to carry out the
9provisions of this Section.
10    (d) As used in this Section, "qualifying child" has the
11meaning given to that term in Section 152 of the Internal
12Revenue Code.
13    (e) This Section is exempt from the provisions of Section
14250.
 
15
ARTICLE 105.

 
16    Section 105-5. The Illinois Income Tax Act is amended by
17changing Section 207 as follows:
 
18    (35 ILCS 5/207)  (from Ch. 120, par. 2-207)
19    Sec. 207. Net Losses.
20    (a) If after applying all of the (i) modifications
21provided for in paragraph (2) of Section 203(b), paragraph (2)
22of Section 203(c) and paragraph (2) of Section 203(d) and (ii)
23the allocation and apportionment provisions of Article 3 of

 

 

10300HB4951sam002- 933 -LRB103 38094 HLH 74177 a

1this Act and subsection (c) of this Section, the taxpayer's
2net income results in a loss;
3        (1) for any taxable year ending prior to December 31,
4    1999, such loss shall be allowed as a carryover or
5    carryback deduction in the manner allowed under Section
6    172 of the Internal Revenue Code;
7        (2) for any taxable year ending on or after December
8    31, 1999 and prior to December 31, 2003, such loss shall be
9    allowed as a carryback to each of the 2 taxable years
10    preceding the taxable year of such loss and shall be a net
11    operating loss carryover to each of the 20 taxable years
12    following the taxable year of such loss;
13        (3) for any taxable year ending on or after December
14    31, 2003 and prior to December 31, 2021, such loss shall be
15    allowed as a net operating loss carryover to each of the 12
16    taxable years following the taxable year of such loss,
17    except as provided in subsection (d); and
18        (4) for any taxable year ending on or after December
19    31, 2021, and for any net loss incurred in a taxable year
20    prior to a taxable year ending on or after December 31,
21    2021 for which the statute of limitation for utilization
22    of such net loss has not expired, such loss shall be
23    allowed as a net operating loss carryover to each of the 20
24    taxable years following the taxable year of such loss,
25    except as provided in subsection (d).
26    (a-5) Election to relinquish carryback and order of

 

 

10300HB4951sam002- 934 -LRB103 38094 HLH 74177 a

1application of losses.
2            (A) For losses incurred in tax years ending prior
3        to December 31, 2003, the taxpayer may elect to
4        relinquish the entire carryback period with respect to
5        such loss. Such election shall be made in the form and
6        manner prescribed by the Department and shall be made
7        by the due date (including extensions of time) for
8        filing the taxpayer's return for the taxable year in
9        which such loss is incurred, and such election, once
10        made, shall be irrevocable.
11            (B) The entire amount of such loss shall be
12        carried to the earliest taxable year to which such
13        loss may be carried. The amount of such loss which
14        shall be carried to each of the other taxable years
15        shall be the excess, if any, of the amount of such loss
16        over the sum of the deductions for carryback or
17        carryover of such loss allowable for each of the prior
18        taxable years to which such loss may be carried.
19    (b) Any loss determined under subsection (a) of this
20Section must be carried back or carried forward in the same
21manner for purposes of subsections (a) and (b) of Section 201
22of this Act as for purposes of subsections (c) and (d) of
23Section 201 of this Act.
24    (c) Notwithstanding any other provision of this Act, for
25each taxable year ending on or after December 31, 2008, for
26purposes of computing the loss for the taxable year under

 

 

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1subsection (a) of this Section and the deduction taken into
2account for the taxable year for a net operating loss
3carryover under paragraphs (1), (2), and (3) of subsection (a)
4of this Section, the loss and net operating loss carryover
5shall be reduced in an amount equal to the reduction to the net
6operating loss and net operating loss carryover to the taxable
7year, respectively, required under Section 108(b)(2)(A) of the
8Internal Revenue Code, multiplied by a fraction, the numerator
9of which is the amount of discharge of indebtedness income
10that is excluded from gross income for the taxable year (but
11only if the taxable year ends on or after December 31, 2008)
12under Section 108(a) of the Internal Revenue Code and that
13would have been allocated and apportioned to this State under
14Article 3 of this Act but for that exclusion, and the
15denominator of which is the total amount of discharge of
16indebtedness income excluded from gross income under Section
17108(a) of the Internal Revenue Code for the taxable year. The
18reduction required under this subsection (c) shall be made
19after the determination of Illinois net income for the taxable
20year in which the indebtedness is discharged.
21    (d) In the case of a corporation (other than a Subchapter S
22corporation): ,
23        (1) no carryover deduction shall be allowed under this
24    Section for any taxable year ending after December 31,
25    2010 and prior to December 31, 2012; , and
26        (2) no carryover deduction shall exceed $100,000 for

 

 

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1    any taxable year ending on or after December 31, 2012 and
2    prior to December 31, 2014 and for any taxable year ending
3    on or after December 31, 2021 and prior to December 31,
4    2024; and
5        (3) no carryover deduction shall exceed $500,000 for
6    any taxable year ending on or after December 31, 2024.
7    For the provided that, for purposes of determining the
8taxable years to which a net loss may be carried under
9subsection (a) of this Section, no taxable year for which a
10deduction is disallowed under this subsection, or for which
11the deduction would exceed $100,000 or $500,000, as
12applicable, if not for this subsection, shall be counted.
13    (e) In the case of a residual interest holder in a real
14estate mortgage investment conduit subject to Section 860E of
15the Internal Revenue Code, the net loss in subsection (a)
16shall be equal to:
17        (1) the amount computed under subsection (a), without
18    regard to this subsection (e), or if that amount is
19    positive, zero;
20        (2) minus an amount equal to the amount computed under
21    subsection (a), without regard to this subsection (e),
22    minus the amount that would be computed under subsection
23    (a) if the taxpayer's federal taxable income were computed
24    without regard to Section 860E of the Internal Revenue
25    Code and without regard to this subsection (e).
26    The modification in this subsection (e) is exempt from the

 

 

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1provisions of Section 250.
2(Source: P.A. 102-16, eff. 6-17-21; 102-669, eff. 11-16-21.)
 
3
ARTICLE 110.

 
4    Section 110-5. The Use Tax Act is amended by changing
5Section 9 as follows:
 
6    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
7    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
8and trailers that are required to be registered with an agency
9of this State, each retailer required or authorized to collect
10the tax imposed by this Act shall pay to the Department the
11amount of such tax (except as otherwise provided) at the time
12when he is required to file his return for the period during
13which such tax was collected, less a discount of 2.1% prior to
14January 1, 1990, and 1.75% on and after January 1, 1990, or $5
15per calendar year, whichever is greater, which is allowed to
16reimburse the retailer for expenses incurred in collecting the
17tax, keeping records, preparing and filing returns, remitting
18the tax and supplying data to the Department on request.
19Beginning with returns due on or after January 1, 2025, the
20discount allowed in this Section, the Retailers' Occupation
21Tax Act, the Service Occupation Tax Act, and the Service Use
22Tax Act, including any local tax administered by the
23Department and reported on the same return, shall not exceed

 

 

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1$1,000 per month in the aggregate for returns other than
2transaction returns filed during the month. When determining
3the discount allowed under this Section, retailers shall
4include the amount of tax that would have been due at the 6.25%
5rate but for the 1.25% rate imposed on sales tax holiday items
6under Public Act 102-700. The discount under this Section is
7not allowed for the 1.25% portion of taxes paid on aviation
8fuel that is subject to the revenue use requirements of 49
9U.S.C. 47107(b) and 49 U.S.C. 47133. When determining the
10discount allowed under this Section, retailers shall include
11the amount of tax that would have been due at the 1% rate but
12for the 0% rate imposed under Public Act 102-700. In the case
13of retailers who report and pay the tax on a transaction by
14transaction basis, as provided in this Section, such discount
15shall be taken with each such tax remittance instead of when
16such retailer files his periodic return, but, beginning with
17returns due on or after January 1, 2025, the discount allowed
18under this Section and the Retailers' Occupation Tax Act,
19including any local tax administered by the Department and
20reported on the same transaction return, shall not exceed
21$1,000 per month for all transaction returns filed during the
22month. The discount allowed under this Section is allowed only
23for returns that are filed in the manner required by this Act.
24The Department may disallow the discount for retailers whose
25certificate of registration is revoked at the time the return
26is filed, but only if the Department's decision to revoke the

 

 

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

 

 

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1quarter, or year, as appropriate, and upon which tax would
2have been due but for the 0% rate imposed under Public Act
3102-700. The return shall also include the amount of tax that
4would have been due on food for human consumption that is to be
5consumed off the premises where it is sold (other than
6alcoholic beverages, food consisting of or infused with adult
7use cannabis, soft drinks, and food that has been prepared for
8immediate consumption) but for the 0% rate imposed under
9Public Act 102-700.
10    On and after January 1, 2018, except for returns required
11to be filed prior to January 1, 2023 for motor vehicles,
12watercraft, aircraft, and trailers that are required to be
13registered with an agency of this State, with respect to
14retailers whose annual gross receipts average $20,000 or more,
15all returns required to be filed pursuant to this Act shall be
16filed electronically. On and after January 1, 2023, with
17respect to retailers whose annual gross receipts average
18$20,000 or more, all returns required to be filed pursuant to
19this Act, including, but not limited to, returns for motor
20vehicles, watercraft, aircraft, and trailers that are required
21to be registered with an agency of this State, shall be filed
22electronically. Retailers who demonstrate that they do not
23have access to the Internet or demonstrate hardship in filing
24electronically may petition the Department to waive the
25electronic filing requirement.
26    The Department may require returns to be filed on a

 

 

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

 

 

10300HB4951sam002- 942 -LRB103 38094 HLH 74177 a

1aviation fuel tax return. The requirements related to the
2return shall be as otherwise provided in this Section.
3Notwithstanding any other provisions of this Act to the
4contrary, retailers collecting tax on aviation fuel shall file
5all aviation fuel tax returns and shall make all aviation fuel
6tax payments by electronic means in the manner and form
7required by the Department. For purposes of this Section,
8"aviation fuel" means jet fuel and aviation 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, retailers 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

 

 

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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

 

 

10300HB4951sam002- 944 -LRB103 38094 HLH 74177 a

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    Before October 1, 2000, if the taxpayer's average monthly
7tax liability to the Department under this Act, the Retailers'
8Occupation Tax Act, the Service Occupation Tax Act, the
9Service Use Tax Act was $10,000 or more during the preceding 4
10complete calendar quarters, he shall file a return with the
11Department each month by the 20th day of the month next
12following the month during which such tax liability is
13incurred and shall make payments to the Department on or
14before the 7th, 15th, 22nd and last day of the month during
15which such liability is incurred. On and after October 1,
162000, if the taxpayer's average monthly tax liability to the
17Department under this Act, the Retailers' Occupation Tax Act,
18the Service Occupation Tax Act, and the Service Use Tax Act was
19$20,000 or more during the preceding 4 complete calendar
20quarters, he shall file a return with the Department each
21month by the 20th day of the month next following the month
22during which such tax liability is incurred and shall make
23payment to the Department on or before the 7th, 15th, 22nd and
24last day of the month during which such liability is incurred.
25If the month during which such tax liability is incurred began
26prior to January 1, 1985, each payment shall be in an amount

 

 

10300HB4951sam002- 945 -LRB103 38094 HLH 74177 a

1equal to 1/4 of the taxpayer's actual liability for the month
2or an amount set by the Department not to exceed 1/4 of the
3average monthly liability of the taxpayer to the Department
4for the preceding 4 complete calendar quarters (excluding the
5month of highest liability and the month of lowest liability
6in such 4 quarter period). If the month during which such tax
7liability is incurred begins on or after January 1, 1985, and
8prior to January 1, 1987, each payment shall be in an amount
9equal to 22.5% of the taxpayer's actual liability for the
10month or 27.5% of the taxpayer's liability for the same
11calendar month of the preceding year. If the month during
12which such tax liability is incurred begins on or after
13January 1, 1987, and prior to January 1, 1988, each payment
14shall be in an amount equal to 22.5% of the taxpayer's actual
15liability for the month or 26.25% of the taxpayer's liability
16for the same calendar month of the preceding year. If the month
17during which such tax liability is incurred begins on or after
18January 1, 1988, and prior to January 1, 1989, or begins on or
19after January 1, 1996, each payment shall be in an amount equal
20to 22.5% of the taxpayer's actual liability for the month or
2125% of the taxpayer's liability for the same calendar month of
22the preceding year. If the month during which such tax
23liability is incurred begins on or after January 1, 1989, and
24prior to January 1, 1996, each payment shall be in an amount
25equal to 22.5% of the taxpayer's actual liability for the
26month or 25% of the taxpayer's liability for the same calendar

 

 

10300HB4951sam002- 946 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 947 -LRB103 38094 HLH 74177 a

1computed for each calendar quarter of the 4 preceding complete
2calendar quarter period is less than $20,000. However, if a
3taxpayer can show the Department that a substantial change in
4the taxpayer's business has occurred which causes the taxpayer
5to anticipate that his average monthly tax liability for the
6reasonably foreseeable future will fall below the $20,000
7threshold stated above, then such taxpayer may petition the
8Department for a change in such taxpayer's reporting status.
9The Department shall change such taxpayer's reporting status
10unless it finds that such change is seasonal in nature and not
11likely to be long term. Quarter monthly payment status shall
12be determined under this paragraph as if the rate reduction to
131.25% in Public Act 102-700 on sales tax holiday items had not
14occurred. For quarter monthly payments due on or after July 1,
152023 and through June 30, 2024, "25% of the taxpayer's
16liability for the same calendar month of the preceding year"
17shall be determined as if the rate reduction to 1.25% in Public
18Act 102-700 on sales tax holiday items had not occurred.
19Quarter monthly payment status shall be determined under this
20paragraph as if the rate reduction to 0% in Public Act 102-700
21on food for human consumption that is to be consumed off the
22premises where it is sold (other than alcoholic beverages,
23food consisting of or infused with adult use cannabis, soft
24drinks, and food that has been prepared for immediate
25consumption) had not occurred. For quarter monthly payments
26due under this paragraph on or after July 1, 2023 and through

 

 

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

 

 

10300HB4951sam002- 949 -LRB103 38094 HLH 74177 a

1in accordance with reasonable rules and regulations to be
2prescribed by the Department, except that if such excess
3payment is shown on an original monthly return and is made
4after December 31, 1986, no credit memorandum shall be issued,
5unless requested by the taxpayer. If no such request is made,
6the taxpayer may credit such excess payment against tax
7liability subsequently to be remitted by the taxpayer to the
8Department under this Act, the Retailers' Occupation Tax Act,
9the Service Occupation Tax Act or the Service Use Tax Act, in
10accordance with reasonable rules and regulations prescribed by
11the Department. If the Department subsequently determines that
12all or any part of the credit taken was not actually due to the
13taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
14be reduced, if necessary, to reflect by 2.1% or 1.75% of the
15difference between the credit taken and that actually due, and
16the taxpayer shall be liable for penalties and interest on
17such 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

 

 

10300HB4951sam002- 951 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 952 -LRB103 38094 HLH 74177 a

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.

 

 

10300HB4951sam002- 953 -LRB103 38094 HLH 74177 a

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)

 

 

10300HB4951sam002- 954 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 955 -LRB103 38094 HLH 74177 a

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 vendor's 2.1% or 1.75%
13discount provided for in this Section being allowed. When the
14user pays the tax directly to the Department, he shall pay the
15tax in the same amount and in the same form in which it would
16be remitted if the tax had been remitted to the Department by
17the retailer.
18    Where a retailer collects the tax with respect to the
19selling price of tangible personal property which he sells and
20the purchaser thereafter returns such tangible personal
21property and the retailer refunds the selling price thereof to
22the purchaser, such retailer shall also refund, to the
23purchaser, the tax so collected from the purchaser. When
24filing his return for the period in which he refunds such tax
25to the purchaser, the retailer may deduct the amount of the tax
26so refunded by him to the purchaser from any other use tax

 

 

10300HB4951sam002- 956 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 957 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 958 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 959 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 960 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 961 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 962 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 963 -LRB103 38094 HLH 74177 a

1installment of the amount requested in the certificate of the
2Chairman of the Metropolitan Pier and Exposition Authority
3provided under Section 8.25f of the State Finance Act, but not
4in excess of the sums designated as "Total Deposit", shall be
5deposited in the aggregate from collections under Section 9 of
6the Use Tax Act, Section 9 of the Service Use Tax Act, Section
79 of the Service Occupation Tax Act, and Section 3 of the
8Retailers' Occupation Tax Act into the McCormick Place
9Expansion Project Fund in the specified fiscal years.
10Fiscal YearTotal Deposit
111993         $0
121994 53,000,000
131995 58,000,000
141996 61,000,000
151997 64,000,000
161998 68,000,000
171999 71,000,000
182000 75,000,000
192001 80,000,000
202002 93,000,000
212003 99,000,000
222004103,000,000
232005108,000,000
242006113,000,000
252007119,000,000
262008126,000,000

 

 

10300HB4951sam002- 964 -LRB103 38094 HLH 74177 a

12009132,000,000
22010139,000,000
32011146,000,000
42012153,000,000
52013161,000,000
62014170,000,000
72015179,000,000
82016189,000,000
92017199,000,000
102018210,000,000
112019221,000,000
122020233,000,000
132021300,000,000
142022300,000,000
152023300,000,000
162024 300,000,000
172025 300,000,000
182026 300,000,000
192027 375,000,000
202028 375,000,000
212029 375,000,000
222030 375,000,000
232031 375,000,000
242032 375,000,000
252033 375,000,000
262034375,000,000

 

 

10300HB4951sam002- 965 -LRB103 38094 HLH 74177 a

12035375,000,000
22036450,000,000
3and
4each fiscal year
5thereafter that bonds
6are outstanding under
7Section 13.2 of the
8Metropolitan Pier and
9Exposition Authority Act,
10but not after fiscal year 2060.
11    Beginning July 20, 1993 and in each month of each fiscal
12year thereafter, one-eighth of the amount requested in the
13certificate of the Chairman of the Metropolitan Pier and
14Exposition Authority for that fiscal year, less the amount
15deposited into the McCormick Place Expansion Project Fund by
16the State Treasurer in the respective month under subsection
17(g) of Section 13 of the Metropolitan Pier and Exposition
18Authority Act, plus cumulative deficiencies in the deposits
19required under this Section for previous months and years,
20shall be deposited into the McCormick Place Expansion Project
21Fund, until the full amount requested for the fiscal year, but
22not in excess of the amount specified above as "Total
23Deposit", has been deposited.
24    Subject to payment of amounts into the Capital Projects
25Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
26and the McCormick Place Expansion Project Fund pursuant to the

 

 

10300HB4951sam002- 966 -LRB103 38094 HLH 74177 a

1preceding paragraphs or in any amendments thereto hereafter
2enacted, for aviation fuel sold on or after December 1, 2019,
3the Department shall each month deposit into the Aviation Fuel
4Sales Tax Refund Fund an amount estimated by the Department to
5be required for refunds of the 80% portion of the tax on
6aviation fuel under this Act. The Department shall only
7deposit moneys into the Aviation Fuel Sales Tax Refund Fund
8under this paragraph for so long as the revenue use
9requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
10binding on the State.
11    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 July 1, 1993 and ending on September 30,
152013, the Department shall each month pay into the Illinois
16Tax Increment Fund 0.27% of 80% of the net revenue realized for
17the preceding month from the 6.25% general rate on the selling
18price of tangible personal property.
19    Subject to payment of amounts into the Build Illinois
20Fund, the McCormick Place Expansion Project Fund, the Illinois
21Tax Increment Fund, and the Energy Infrastructure Fund
22pursuant to the preceding paragraphs or in any amendments to
23this Section hereafter enacted, beginning on the first day of
24the first calendar month to occur on or after August 26, 2014
25(the effective date of Public Act 98-1098), each month, from
26the collections made under Section 9 of the Use Tax Act,

 

 

10300HB4951sam002- 967 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 968 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 969 -LRB103 38094 HLH 74177 a

1        2036....................................$361,900,000
2        2037....................................$372,800,000
3        2038....................................$384,000,000
4        2039....................................$395,500,000
5        2040....................................$407,400,000
6        2041....................................$419,600,000
7        2042....................................$432,200,000
8        2043....................................$445,100,000
9    Beginning July 1, 2021 and until July 1, 2022, subject to
10the payment of amounts into the State and Local Sales Tax
11Reform Fund, the Build Illinois Fund, the McCormick Place
12Expansion Project Fund, the Illinois Tax Increment Fund, and
13the Tax Compliance and Administration Fund as provided in this
14Section, the Department shall pay each month into the Road
15Fund the amount estimated to represent 16% of the net revenue
16realized from the taxes imposed on motor fuel and gasohol.
17Beginning July 1, 2022 and until July 1, 2023, subject to the
18payment of amounts into the State and Local Sales Tax Reform
19Fund, the Build Illinois Fund, the McCormick Place Expansion
20Project Fund, the Illinois Tax Increment Fund, and the Tax
21Compliance and Administration Fund as provided in this
22Section, the Department shall pay each month into the Road
23Fund the amount estimated to represent 32% of the net revenue
24realized from the taxes imposed on motor fuel and gasohol.
25Beginning July 1, 2023 and until July 1, 2024, subject to the
26payment of amounts into the State and Local Sales Tax Reform

 

 

10300HB4951sam002- 970 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 971 -LRB103 38094 HLH 74177 a

1pursuant to this Act, 75% thereof shall be paid into the State
2Treasury and 25% shall be reserved in a special account and
3used only for the transfer to the Common School Fund as part of
4the monthly transfer from the General Revenue Fund in
5accordance with Section 8a of the State Finance Act.
6    As soon as possible after the first day of each month, upon
7certification of the Department of Revenue, the Comptroller
8shall order transferred and the Treasurer shall transfer from
9the General Revenue Fund to the Motor Fuel Tax Fund an amount
10equal to 1.7% of 80% of the net revenue realized under this Act
11for the second preceding month. Beginning April 1, 2000, this
12transfer is no longer required and shall not be made.
13    Net revenue realized for a month shall be the revenue
14collected by the State pursuant to this Act, less the amount
15paid out during that month as refunds to taxpayers for
16overpayment of liability.
17    For greater simplicity of administration, manufacturers,
18importers and wholesalers whose products are sold at retail in
19Illinois by numerous retailers, and who wish to do so, may
20assume the responsibility for accounting and paying to the
21Department all tax accruing under this Act with respect to
22such sales, if the retailers who are affected do not make
23written objection to the Department to this arrangement.
24(Source: P.A. 102-700, Article 60, Section 60-15, eff.
254-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;
26102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff.

 

 

10300HB4951sam002- 972 -LRB103 38094 HLH 74177 a

17-28-23.)
 
2    Section 110-10. The Service Use Tax Act is amended by
3changing Section 9 as follows:
 
4    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
5    Sec. 9. Each serviceman required or authorized to collect
6the tax herein imposed shall pay to the Department the amount
7of such tax (except as otherwise provided) at the time when he
8is required to file his return for the period during which such
9tax was collected, less a discount of 2.1% prior to January 1,
101990 and 1.75% on and after January 1, 1990, or $5 per calendar
11year, whichever is greater, which is allowed to reimburse the
12serviceman for expenses incurred in collecting the tax,
13keeping records, preparing and filing returns, remitting the
14tax and supplying data to the Department on request. Beginning
15with returns due on or after January 1, 2025, the vendor's
16discount allowed in this Section, the Retailers' Occupation
17Tax Act, the Service Occupation Tax Act, and the Use Tax Act,
18including any local tax administered by the Department and
19reported on the same return, shall not exceed $1,000 per month
20in the aggregate. When determining the discount allowed under
21this Section, servicemen shall include the amount of tax that
22would have been due at the 1% rate but for the 0% rate imposed
23under this amendatory Act of the 102nd General Assembly. The
24discount under this Section is not allowed for the 1.25%

 

 

10300HB4951sam002- 973 -LRB103 38094 HLH 74177 a

1portion of taxes paid on aviation fuel that is subject to the
2revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
347133. The discount allowed under this Section is allowed only
4for returns that are filed in the manner required by this Act.
5The Department may disallow the discount for servicemen whose
6certificate of registration is revoked at the time the return
7is filed, but only if the Department's decision to revoke the
8certificate of registration has become final. A serviceman
9need not remit that part of any tax collected by him to the
10extent that he is required to pay and does pay the tax imposed
11by the Service Occupation Tax Act with respect to his sale of
12service involving the incidental transfer by him of the same
13property.
14    Except as provided hereinafter in this Section, on or
15before the twentieth day of each calendar month, such
16serviceman shall file a return for the preceding calendar
17month in accordance with reasonable Rules and Regulations to
18be promulgated by the Department. Such return shall be filed
19on a form prescribed by the Department and shall contain such
20information as the Department may reasonably require. The
21return shall include the gross receipts which were received
22during the preceding calendar month or quarter on the
23following items upon which tax would have been due but for the
240% rate imposed under this amendatory Act of the 102nd General
25Assembly: (i) food for human consumption that is to be
26consumed off the premises where it is sold (other than

 

 

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

 

 

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

 

 

10300HB4951sam002- 976 -LRB103 38094 HLH 74177 a

1and shall make all aviation fuel tax payments by electronic
2means in the manner and form required by the Department. For
3purposes of this Section, "aviation fuel" means jet fuel and
4aviation gasoline.
5    If a taxpayer fails to sign a return within 30 days after
6the proper notice and demand for signature by the Department,
7the return shall be considered valid and any amount shown to be
8due on the return shall be deemed assessed.
9    Notwithstanding any other provision of this Act to the
10contrary, servicemen subject to tax on cannabis shall file all
11cannabis tax returns and shall make all cannabis tax payments
12by electronic means in the manner and form required by the
13Department.
14    Beginning October 1, 1993, a taxpayer who has an average
15monthly tax liability of $150,000 or more shall make all
16payments required by rules of the Department by electronic
17funds transfer. Beginning October 1, 1994, a taxpayer who has
18an average monthly tax liability of $100,000 or more shall
19make all payments required by rules of the Department by
20electronic funds transfer. Beginning October 1, 1995, a
21taxpayer who has an average monthly tax liability of $50,000
22or more shall make all payments required by rules of the
23Department by electronic funds transfer. Beginning October 1,
242000, a taxpayer who has an annual tax liability of $200,000 or
25more shall make all payments required by rules of the
26Department by electronic funds transfer. The term "annual tax

 

 

10300HB4951sam002- 977 -LRB103 38094 HLH 74177 a

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

 

 

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

 

 

10300HB4951sam002- 979 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 980 -LRB103 38094 HLH 74177 a

1return which will enable servicemen, who are required to file
2returns hereunder and also under the Service Occupation Tax
3Act, to furnish all the return information required by both
4Acts on the one form.
5    Where the serviceman has more than one business registered
6with the Department under separate registration hereunder,
7such serviceman shall not file each return that is due as a
8single return covering all such registered businesses, but
9shall file separate returns for each such registered business.
10    Beginning January 1, 1990, each month the Department shall
11pay into the State and Local Tax Reform Fund, a special fund in
12the State Treasury, the net revenue realized for the preceding
13month from the 1% tax imposed under this Act.
14    Beginning January 1, 1990, each month the Department shall
15pay into the State and Local Sales Tax Reform Fund 20% of the
16net revenue realized for the preceding month from the 6.25%
17general rate on transfers of tangible personal property, other
18than (i) tangible personal property which is purchased outside
19Illinois at retail from a retailer and which is titled or
20registered by an agency of this State's government and (ii)
21aviation fuel sold on or after December 1, 2019. This
22exception for aviation fuel only applies for so long as the
23revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2447133 are binding on the State.
25    For aviation fuel sold on or after December 1, 2019, each
26month the Department shall pay into the State Aviation Program

 

 

10300HB4951sam002- 981 -LRB103 38094 HLH 74177 a

1Fund 20% of the net revenue realized for the preceding month
2from the 6.25% general rate on the selling price of aviation
3fuel, less an amount estimated by the Department to be
4required for refunds of the 20% portion of the tax on aviation
5fuel under this Act, which amount shall be deposited into the
6Aviation Fuel Sales Tax Refund Fund. The Department shall only
7pay moneys into the State Aviation Program Fund and the
8Aviation Fuel Sales Tax Refund Fund under this Act for so long
9as the revenue use requirements of 49 U.S.C. 47107(b) and 49
10U.S.C. 47133 are binding on the State.
11    Beginning August 1, 2000, each month the Department shall
12pay into the State and Local Sales Tax Reform Fund 100% of the
13net revenue realized for the preceding month from the 1.25%
14rate on the selling price of motor fuel and gasohol.
15    Beginning October 1, 2009, each month the Department shall
16pay into the Capital Projects Fund an amount that is equal to
17an amount estimated by the Department to represent 80% of the
18net revenue realized for the preceding month from the sale of
19candy, grooming and hygiene products, and soft drinks that had
20been taxed at a rate of 1% prior to September 1, 2009 but that
21are now taxed at 6.25%.
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 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

 

 

10300HB4951sam002- 982 -LRB103 38094 HLH 74177 a

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 Use Tax Act, the Service Occupation Tax Act, and the
5Retailers' Occupation Tax Act shall not exceed $18,000,000 in
6any State fiscal year. As used in this paragraph, the "average
7monthly deficit" shall be equal to the difference between the
8average monthly claims for payment by the fund and the average
9monthly revenues deposited into the fund, excluding payments
10made pursuant to this paragraph.
11    Beginning July 1, 2015, of the remainder of the moneys
12received by the Department under the Use Tax Act, this Act, the
13Service Occupation Tax Act, and the Retailers' Occupation Tax
14Act, each month the Department shall deposit $500,000 into the
15State 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

 

 

10300HB4951sam002- 983 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 984 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 985 -LRB103 38094 HLH 74177 a

1into the Build Illinois Fund are subject to the pledge, claim
2and charge set forth in Section 12 of the Build Illinois Bond
3Act.
4    Subject to payment of amounts into the Build Illinois Fund
5as provided in the preceding paragraph or in any amendment
6thereto hereafter enacted, the following specified monthly
7installment of the amount requested in the certificate of the
8Chairman of the Metropolitan Pier and Exposition Authority
9provided under Section 8.25f of the State Finance Act, but not
10in excess of 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

 

 

10300HB4951sam002- 986 -LRB103 38094 HLH 74177 a

12002 93,000,000
22003 99,000,000
32004103,000,000
42005108,000,000
52006113,000,000
62007119,000,000
72008126,000,000
82009132,000,000
92010139,000,000
102011146,000,000
112012153,000,000
122013161,000,000
132014170,000,000
142015179,000,000
152016189,000,000
162017199,000,000
172018210,000,000
182019221,000,000
192020233,000,000
202021300,000,000
212022300,000,000
222023300,000,000
232024 300,000,000
242025 300,000,000
252026 300,000,000
262027 375,000,000

 

 

10300HB4951sam002- 987 -LRB103 38094 HLH 74177 a

12028 375,000,000
22029 375,000,000
32030 375,000,000
42031 375,000,000
52032 375,000,000
62033 375,000,000
72034375,000,000
82035375,000,000
92036450,000,000
10and
11each fiscal year
12thereafter that bonds
13are outstanding under
14Section 13.2 of the
15Metropolitan Pier and
16Exposition Authority Act,
17but not after fiscal year 2060.
18    Beginning July 20, 1993 and in each month of each fiscal
19year thereafter, one-eighth of the amount requested in the
20certificate of the Chairman of the Metropolitan Pier and
21Exposition Authority for that fiscal year, less the amount
22deposited into the McCormick Place Expansion Project Fund by
23the State Treasurer in the respective month under subsection
24(g) of Section 13 of the Metropolitan Pier and Exposition
25Authority Act, plus cumulative deficiencies in the deposits
26required under this Section for previous months and years,

 

 

10300HB4951sam002- 988 -LRB103 38094 HLH 74177 a

1shall be deposited into the McCormick Place Expansion Project
2Fund, until the full amount requested for the fiscal year, but
3not in excess of the amount specified above as "Total
4Deposit", has been deposited.
5    Subject to payment of amounts into the Capital Projects
6Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
7and the McCormick Place Expansion Project Fund pursuant to the
8preceding paragraphs or in any amendments thereto hereafter
9enacted, for aviation fuel sold on or after December 1, 2019,
10the Department shall each month deposit into the Aviation Fuel
11Sales Tax Refund Fund an amount estimated by the Department to
12be required for refunds of the 80% portion of the tax on
13aviation fuel under this Act. The Department shall only
14deposit moneys into the Aviation Fuel Sales Tax Refund Fund
15under this paragraph for so long as the revenue use
16requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
17binding on the State.
18    Subject to payment of amounts into the Build Illinois Fund
19and the McCormick Place Expansion Project Fund pursuant to the
20preceding paragraphs or in any amendments thereto hereafter
21enacted, beginning July 1, 1993 and ending on September 30,
222013, the Department shall each month pay into the Illinois
23Tax Increment Fund 0.27% of 80% of the net revenue realized for
24the preceding month from the 6.25% general rate on the selling
25price of tangible personal property.
26    Subject to payment of amounts into the Build Illinois

 

 

10300HB4951sam002- 989 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 990 -LRB103 38094 HLH 74177 a

1public-private agreement between the public agency and private
2entity and completion of the civic build, beginning on July 1,
32023, of the remainder of the moneys received by the
4Department under the Use Tax Act, the Service Use Tax Act, the
5Service Occupation Tax Act, and this Act, the Department shall
6deposit the following specified deposits in the aggregate from
7collections under the Use Tax Act, the Service Use Tax Act, the
8Service Occupation Tax Act, and the Retailers' Occupation Tax
9Act, as required under Section 8.25g of the State Finance Act
10for distribution consistent with the Public-Private
11Partnership for Civic and Transit Infrastructure Project Act.
12The moneys received by the Department pursuant to this Act and
13required to be deposited into the Civic and Transit
14Infrastructure Fund are subject to the pledge, claim, and
15charge set forth in Section 25-55 of the Public-Private
16Partnership for Civic and Transit Infrastructure Project Act.
17As used in this paragraph, "civic build", "private entity",
18"public-private agreement", and "public agency" have the
19meanings provided in Section 25-10 of the Public-Private
20Partnership for Civic and Transit Infrastructure Project Act.
21        Fiscal Year............................Total Deposit
22        2024....................................$200,000,000
23        2025....................................$206,000,000
24        2026....................................$212,200,000
25        2027....................................$218,500,000
26        2028....................................$225,100,000

 

 

10300HB4951sam002- 991 -LRB103 38094 HLH 74177 a

1        2029....................................$288,700,000
2        2030....................................$298,900,000
3        2031....................................$309,300,000
4        2032....................................$320,100,000
5        2033....................................$331,200,000
6        2034....................................$341,200,000
7        2035....................................$351,400,000
8        2036....................................$361,900,000
9        2037....................................$372,800,000
10        2038....................................$384,000,000
11        2039....................................$395,500,000
12        2040....................................$407,400,000
13        2041....................................$419,600,000
14        2042....................................$432,200,000
15        2043....................................$445,100,000
16    Beginning July 1, 2021 and until July 1, 2022, subject to
17the payment of amounts into the State and Local Sales Tax
18Reform Fund, the Build Illinois Fund, the McCormick Place
19Expansion Project Fund, the Energy Infrastructure Fund, and
20the Tax Compliance and Administration Fund as provided in this
21Section, the Department shall pay each month into the Road
22Fund the amount estimated to represent 16% of the net revenue
23realized from the taxes imposed on motor fuel and gasohol.
24Beginning July 1, 2022 and until July 1, 2023, subject to the
25payment of amounts into the State and Local Sales Tax Reform
26Fund, the Build Illinois Fund, the McCormick Place Expansion

 

 

10300HB4951sam002- 992 -LRB103 38094 HLH 74177 a

1Project Fund, the Illinois Tax Increment Fund, and the Tax
2Compliance and Administration Fund as provided in this
3Section, the Department shall pay each month into the Road
4Fund the amount estimated to represent 32% of the net revenue
5realized from the taxes imposed on motor fuel and gasohol.
6Beginning July 1, 2023 and until July 1, 2024, subject to the
7payment of amounts into the State and Local Sales Tax Reform
8Fund, the Build Illinois Fund, the McCormick Place Expansion
9Project Fund, the Illinois Tax Increment Fund, and the Tax
10Compliance and Administration Fund as provided in this
11Section, the Department shall pay each month into the Road
12Fund the amount estimated to represent 48% of the net revenue
13realized from the taxes imposed on motor fuel and gasohol.
14Beginning July 1, 2024 and until July 1, 2025, subject to the
15payment of amounts into the State and Local Sales Tax Reform
16Fund, the Build Illinois Fund, the McCormick Place Expansion
17Project Fund, the Illinois Tax Increment Fund, and the Tax
18Compliance and Administration Fund as provided in this
19Section, the Department shall pay each month into the Road
20Fund the amount estimated to represent 64% of the net revenue
21realized from the taxes imposed on motor fuel and gasohol.
22Beginning on July 1, 2025, subject to the payment of amounts
23into the State and Local Sales Tax Reform Fund, the Build
24Illinois Fund, the McCormick Place Expansion Project Fund, the
25Illinois Tax Increment Fund, and the Tax Compliance and
26Administration Fund as provided in this Section, the

 

 

10300HB4951sam002- 993 -LRB103 38094 HLH 74177 a

1Department shall pay each month into the Road Fund the amount
2estimated to represent 80% of the net revenue realized from
3the taxes imposed on motor fuel and gasohol. As used in this
4paragraph "motor fuel" has the meaning given to that term in
5Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
6meaning given to that term in Section 3-40 of the Use Tax Act.
7    Of the remainder of the moneys received by the Department
8pursuant to this Act, 75% thereof shall be paid into the
9General Revenue Fund of the State Treasury and 25% shall be
10reserved in a special account and used only for the transfer to
11the Common School Fund as part of the monthly transfer from the
12General Revenue Fund in accordance with Section 8a of the
13State Finance Act.
14    As soon as possible after the first day of each month, upon
15certification of the Department of Revenue, the Comptroller
16shall order transferred and the Treasurer shall transfer from
17the General Revenue Fund to the Motor Fuel Tax Fund an amount
18equal to 1.7% of 80% of the net revenue realized under this Act
19for the second preceding month. Beginning April 1, 2000, this
20transfer is no longer required and shall not be made.
21    Net revenue realized for a month shall be the revenue
22collected by the State pursuant to this Act, less the amount
23paid out during that month as refunds to taxpayers for
24overpayment of liability.
25(Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)
 

 

 

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1    Section 110-15. The Service Occupation Tax Act is amended
2by changing Section 9 as follows:
 
3    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
4    Sec. 9. Each serviceman required or authorized to collect
5the tax herein imposed shall pay to the Department the amount
6of such tax at the time when he is required to file his return
7for the period during which such tax was collectible, less a
8discount of 2.1% prior to January 1, 1990, and 1.75% on and
9after January 1, 1990, or $5 per calendar year, whichever is
10greater, which is allowed to reimburse the serviceman for
11expenses incurred in collecting the tax, keeping records,
12preparing and filing returns, remitting the tax, and supplying
13data to the Department on request. Beginning with returns due
14on or after January 1, 2025, the vendor's discount allowed in
15this Section, the Retailers' Occupation Tax Act, the Use Tax
16Act, and the Service Use Tax Act, including any local tax
17administered by the Department and reported on the same
18return, shall not exceed $1,000 per month in the aggregate.
19When determining the discount allowed under this Section,
20servicemen shall include the amount of tax that would have
21been due at the 1% rate but for the 0% rate imposed under
22Public Act 102-700 this amendatory Act of the 102nd General
23Assembly. The discount under this Section is not allowed for
24the 1.25% portion of taxes paid on aviation fuel that is
25subject to the revenue use requirements of 49 U.S.C. 47107(b)

 

 

10300HB4951sam002- 995 -LRB103 38094 HLH 74177 a

1and 49 U.S.C. 47133. The discount allowed under this Section
2is allowed only for returns that are filed in the manner
3required by this Act. The Department may disallow the discount
4for servicemen whose certificate of registration is revoked at
5the time the return is filed, but only if the Department's
6decision to revoke the certificate of registration has become
7final.
8    Where such tangible personal property is sold under a
9conditional sales contract, or under any other form of sale
10wherein the payment of the principal sum, or a part thereof, is
11extended beyond the close of the period for which the return is
12filed, the serviceman, in collecting the tax may collect, for
13each tax return period, only the tax applicable to the part of
14the selling price actually received during such tax return
15period.
16    Except as provided hereinafter in this Section, on or
17before the twentieth day of each calendar month, such
18serviceman shall file a return for the preceding calendar
19month in accordance with reasonable rules and regulations to
20be promulgated by the Department of Revenue. Such return shall
21be filed on a form prescribed by the Department and shall
22contain such information as the Department may reasonably
23require. The return shall include the gross receipts which
24were received during the preceding calendar month or quarter
25on the following items upon which tax would have been due but
26for the 0% rate imposed under Public Act 102-700 this

 

 

10300HB4951sam002- 996 -LRB103 38094 HLH 74177 a

1amendatory Act of the 102nd General Assembly: (i) food for
2human consumption that is to be consumed off the premises
3where it is sold (other than alcoholic beverages, food
4consisting of or infused with adult use cannabis, soft drinks,
5and food that has been prepared for immediate consumption);
6and (ii) food prepared for immediate consumption and
7transferred incident to a sale of service subject to this Act
8or the Service Use Tax Act by an entity licensed under the
9Hospital Licensing Act, the Nursing Home Care Act, the
10Assisted Living and Shared Housing Act, the ID/DD Community
11Care Act, the MC/DD Act, the Specialized Mental Health
12Rehabilitation Act of 2013, or the Child Care Act of 1969, or
13an entity that holds a permit issued pursuant to the Life Care
14Facilities Act. The return shall also include the amount of
15tax that would have been due on the items listed in the
16previous sentence but for the 0% rate imposed under Public Act
17102-700 this amendatory Act of the 102nd General Assembly.
18    On and after January 1, 2018, with respect to servicemen
19whose annual gross receipts average $20,000 or more, all
20returns required to be filed pursuant to this Act shall be
21filed electronically. Servicemen who demonstrate that they do
22not have access to the Internet or demonstrate hardship in
23filing electronically may petition the Department to waive the
24electronic filing requirement.
25    The Department may require returns to be filed on a
26quarterly basis. If so required, a return for each calendar

 

 

10300HB4951sam002- 997 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 998 -LRB103 38094 HLH 74177 a

1Notwithstanding any other provisions of this Act to the
2contrary, servicemen transferring aviation fuel incident to
3sales of service shall file all aviation fuel tax returns and
4shall make all aviation fuel tax payments by electronic means
5in the manner and form required by the Department. For
6purposes of this Section, "aviation fuel" means jet fuel and
7aviation gasoline.
8    If a taxpayer fails to sign a return within 30 days after
9the proper notice and demand for signature by the Department,
10the return shall be considered valid and any amount shown to be
11due on the return shall be deemed assessed.
12    Notwithstanding any other provision of this Act to the
13contrary, servicemen subject to tax on cannabis shall file all
14cannabis tax returns and shall make all cannabis tax payments
15by electronic means in the manner and form required by the
16Department.
17    Prior to October 1, 2003, and on and after September 1,
182004 a serviceman may accept a Manufacturer's Purchase Credit
19certification from a purchaser in satisfaction of Service Use
20Tax as provided in Section 3-70 of the Service Use Tax Act if
21the purchaser provides the appropriate documentation as
22required by Section 3-70 of the Service Use Tax Act. A
23Manufacturer's Purchase Credit certification, accepted prior
24to October 1, 2003 or on or after September 1, 2004 by a
25serviceman as provided in Section 3-70 of the Service Use Tax
26Act, may be used by that serviceman to satisfy Service

 

 

10300HB4951sam002- 999 -LRB103 38094 HLH 74177 a

1Occupation Tax liability in the amount claimed in the
2certification, not to exceed 6.25% of the receipts subject to
3tax from a qualifying purchase. A Manufacturer's Purchase
4Credit reported on any original or amended return filed under
5this Act after October 20, 2003 for reporting periods prior to
6September 1, 2004 shall be disallowed. Manufacturer's Purchase
7Credit reported on annual returns due on or after January 1,
82005 will be disallowed for periods prior to September 1,
92004. No Manufacturer's Purchase Credit may be used after
10September 30, 2003 through August 31, 2004 to satisfy any tax
11liability imposed under this Act, including any audit
12liability.
13    Beginning on July 1, 2023 and through December 31, 2032, a
14serviceman may accept a Sustainable Aviation Fuel Purchase
15Credit certification from an air common carrier-purchaser in
16satisfaction of Service Use Tax as provided in Section 3-72 of
17the Service Use Tax Act if the purchaser provides the
18appropriate documentation as required by Section 3-72 of the
19Service Use Tax Act. A Sustainable Aviation Fuel Purchase
20Credit certification accepted by a serviceman in accordance
21with this paragraph may be used by that serviceman to satisfy
22service occupation tax liability (but not in satisfaction of
23penalty or interest) in the amount claimed in the
24certification, not to exceed 6.25% of the receipts subject to
25tax from a sale of aviation fuel. In addition, for a sale of
26aviation fuel to qualify to earn the Sustainable Aviation Fuel

 

 

10300HB4951sam002- 1000 -LRB103 38094 HLH 74177 a

1Purchase Credit, servicemen must retain in their books and
2records a certification from the producer of the aviation fuel
3that the aviation fuel sold by the serviceman and for which a
4sustainable aviation fuel purchase credit was earned meets the
5definition of sustainable aviation fuel under Section 3-72 of
6the Service Use Tax Act. The documentation must include detail
7sufficient for the Department to determine the number of
8gallons of sustainable aviation fuel sold.
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

 

 

10300HB4951sam002- 1001 -LRB103 38094 HLH 74177 a

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 one 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

 

 

10300HB4951sam002- 1002 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1003 -LRB103 38094 HLH 74177 a

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
17all the 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    Beginning January 1, 1990, each month the Department shall
24pay into the Local Government Tax Fund the revenue realized
25for the preceding month from the 1% tax imposed under this Act.
26    Beginning January 1, 1990, each month the Department shall

 

 

10300HB4951sam002- 1004 -LRB103 38094 HLH 74177 a

1pay into the County and Mass Transit District Fund 4% of the
2revenue realized for the preceding month from the 6.25%
3general rate on sales of tangible personal property other than
4aviation fuel sold on or after December 1, 2019. This
5exception for aviation fuel only applies for so long as the
6revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
747133 are binding on the State.
8    Beginning August 1, 2000, each month the Department shall
9pay into the County and Mass Transit District Fund 20% of the
10net revenue realized for the preceding month from the 1.25%
11rate on the selling price of motor fuel and gasohol.
12    Beginning January 1, 1990, each month the Department shall
13pay into the Local Government Tax Fund 16% of the revenue
14realized for the preceding month from the 6.25% general rate
15on transfers of tangible personal property other than aviation
16fuel sold on or after December 1, 2019. This exception for
17aviation fuel only applies for so long as the revenue use
18requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
19binding on the State.
20    For aviation fuel sold on or after December 1, 2019, each
21month the Department shall pay into the State Aviation Program
22Fund 20% of the net revenue realized for the preceding month
23from the 6.25% general rate on the selling price of aviation
24fuel, less an amount estimated by the Department to be
25required for refunds of the 20% portion of the tax on aviation
26fuel under this Act, which amount shall be deposited into the

 

 

10300HB4951sam002- 1005 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1006 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1007 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1008 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1009 -LRB103 38094 HLH 74177 a

1thereto hereafter enacted, the following specified monthly
2installment of the amount requested in the certificate of the
3Chairman of the Metropolitan Pier and Exposition Authority
4provided under Section 8.25f of the State Finance Act, but not
5in excess of the sums designated as "Total Deposit", shall be
6deposited in the aggregate from collections under Section 9 of
7the Use Tax Act, Section 9 of the Service Use Tax Act, Section
89 of the Service Occupation Tax Act, and Section 3 of the
9Retailers' Occupation Tax Act into the McCormick Place
10Expansion Project Fund in the specified fiscal years.
 
11Fiscal YearTotal Deposit
121993         $0
131994 53,000,000
141995 58,000,000
151996 61,000,000
161997 64,000,000
171998 68,000,000
181999 71,000,000
192000 75,000,000
202001 80,000,000
212002 93,000,000
222003 99,000,000
232004103,000,000
242005108,000,000
252006113,000,000

 

 

10300HB4951sam002- 1010 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1011 -LRB103 38094 HLH 74177 a

12033 375,000,000
22034375,000,000
32035375,000,000
42036450,000,000
5and
6each fiscal year
7thereafter that bonds
8are outstanding under
9Section 13.2 of the
10Metropolitan Pier and
11Exposition Authority Act,
12but not after fiscal year 2060.
13    Beginning July 20, 1993 and in each month of each fiscal
14year thereafter, one-eighth of the amount requested in the
15certificate of the Chairman of the Metropolitan Pier and
16Exposition Authority for that fiscal year, less the amount
17deposited into the McCormick Place Expansion Project Fund by
18the State Treasurer in the respective month under subsection
19(g) of Section 13 of the Metropolitan Pier and Exposition
20Authority Act, plus cumulative deficiencies in the deposits
21required under this Section for previous months and years,
22shall be deposited into the McCormick Place Expansion Project
23Fund, until the full amount requested for the fiscal year, but
24not in excess of the amount specified above as "Total
25Deposit", has been deposited.
26    Subject to payment of amounts into the Capital Projects

 

 

10300HB4951sam002- 1012 -LRB103 38094 HLH 74177 a

1Fund, the Build Illinois Fund, and the McCormick Place
2Expansion Project Fund pursuant to the preceding paragraphs or
3in any amendments thereto hereafter enacted, for aviation fuel
4sold on or after December 1, 2019, the Department shall each
5month deposit into the Aviation Fuel Sales Tax Refund Fund an
6amount estimated by the Department to be required for refunds
7of the 80% portion of the tax on aviation fuel under this Act.
8The Department shall only deposit moneys into the Aviation
9Fuel Sales Tax Refund Fund under this paragraph for so long as
10the revenue use requirements of 49 U.S.C. 47107(b) and 49
11U.S.C. 47133 are binding on the State.
12    Subject to payment of amounts into the Build Illinois Fund
13and the McCormick Place Expansion Project Fund pursuant to the
14preceding paragraphs or in any amendments thereto hereafter
15enacted, beginning July 1, 1993 and ending on September 30,
162013, the Department shall each month pay into the Illinois
17Tax Increment Fund 0.27% of 80% of the net revenue realized for
18the preceding month from the 6.25% general rate on the selling
19price of tangible personal property.
20    Subject to payment of amounts into the Build Illinois
21Fund, the McCormick Place Expansion Project Fund, and the
22Illinois Tax Increment Fund pursuant to the preceding
23paragraphs or in any amendments to this Section hereafter
24enacted, beginning on the first day of the first calendar
25month to occur on or after August 26, 2014 (the effective date
26of Public Act 98-1098), each month, from the collections made

 

 

10300HB4951sam002- 1013 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1014 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1015 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1016 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1017 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1018 -LRB103 38094 HLH 74177 a

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

 

 

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

 

 

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1(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
2103-363, eff. 7-28-23; revised 9-25-23.)
 
3    Section 110-20. The Retailers' Occupation Tax Act is
4amended by changing Section 3 as follows:
 
5    (35 ILCS 120/3)  (from Ch. 120, par. 442)
6    Sec. 3. Except as provided in this Section, on or before
7the twentieth day of each calendar month, every person engaged
8in the business of selling tangible personal property at
9retail in this State during the preceding calendar month shall
10file a return with the Department, stating:
11        1. The name of the seller;
12        2. His residence address and the address of his
13    principal place of business and the address of the
14    principal place of business (if that is a different
15    address) from which he engages in the business of selling
16    tangible personal property at retail in this State;
17        3. Total amount of receipts received by him during the
18    preceding calendar month or quarter, as the case may be,
19    from sales of tangible personal property, and from
20    services furnished, by him during such preceding calendar
21    month or quarter;
22        4. Total amount received by him during the preceding
23    calendar month or quarter on charge and time sales of
24    tangible personal property, and from services furnished,

 

 

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1    by him prior to the month or quarter for which the return
2    is filed;
3        5. Deductions allowed by law;
4        6. Gross receipts which were received by him during
5    the preceding calendar month or quarter and upon the basis
6    of which the tax is imposed, including gross receipts on
7    food for human consumption that is to be consumed off the
8    premises where it is sold (other than alcoholic beverages,
9    food consisting of or infused with adult use cannabis,
10    soft drinks, and food that has been prepared for immediate
11    consumption) which were received during the preceding
12    calendar month or quarter and upon which tax would have
13    been due but for the 0% rate imposed under Public Act
14    102-700;
15        7. The amount of credit provided in Section 2d of this
16    Act;
17        8. The amount of tax due, including the amount of tax
18    that would have been due on food for human consumption
19    that is to be consumed off the premises where it is sold
20    (other than alcoholic beverages, food consisting of or
21    infused with adult use cannabis, soft drinks, and food
22    that has been prepared for immediate consumption) but for
23    the 0% rate imposed under Public Act 102-700;
24        9. The signature of the taxpayer; and
25        10. Such other reasonable information as the
26    Department may require.

 

 

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1    On and after January 1, 2018, except for returns required
2to be filed prior to January 1, 2023 for motor vehicles,
3watercraft, aircraft, and trailers that are required to be
4registered with an agency of this State, with respect to
5retailers whose annual gross receipts average $20,000 or more,
6all returns required to be filed pursuant to this Act shall be
7filed electronically. On and after January 1, 2023, with
8respect to retailers whose annual gross receipts average
9$20,000 or more, all returns required to be filed pursuant to
10this Act, including, but not limited to, returns for motor
11vehicles, watercraft, aircraft, and trailers that are required
12to be registered with an agency of this State, shall be filed
13electronically. Retailers who demonstrate that they do not
14have access to the Internet or demonstrate hardship in filing
15electronically may petition the Department to waive the
16electronic filing requirement.
17    If a taxpayer fails to sign a return within 30 days after
18the proper notice and demand for signature by the Department,
19the return shall be considered valid and any amount shown to be
20due on the return shall be deemed assessed.
21    Each return shall be accompanied by the statement of
22prepaid tax issued pursuant to Section 2e for which credit is
23claimed.
24    Prior to October 1, 2003, and on and after September 1,
252004, a retailer may accept a Manufacturer's Purchase Credit
26certification from a purchaser in satisfaction of Use Tax as

 

 

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1provided in Section 3-85 of the Use Tax Act if the purchaser
2provides the appropriate documentation as required by Section
33-85 of the Use Tax Act. A Manufacturer's Purchase Credit
4certification, accepted by a retailer prior to October 1, 2003
5and on and after September 1, 2004 as provided in Section 3-85
6of the Use Tax Act, may be used by that retailer to satisfy
7Retailers' Occupation Tax liability in the amount claimed in
8the certification, not to exceed 6.25% of the receipts subject
9to tax from a qualifying purchase. A Manufacturer's Purchase
10Credit reported on any original or amended return filed under
11this Act after October 20, 2003 for reporting periods prior to
12September 1, 2004 shall be disallowed. Manufacturer's Purchase
13Credit reported on annual returns due on or after January 1,
142005 will be disallowed for periods prior to September 1,
152004. No Manufacturer's Purchase Credit may be used after
16September 30, 2003 through August 31, 2004 to satisfy any tax
17liability imposed under this Act, including any audit
18liability.
19    Beginning on July 1, 2023 and through December 31, 2032, a
20retailer may accept a Sustainable Aviation Fuel Purchase
21Credit certification from an air common carrier-purchaser in
22satisfaction of Use Tax on aviation fuel as provided in
23Section 3-87 of the Use Tax Act if the purchaser provides the
24appropriate documentation as required by Section 3-87 of the
25Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
26certification accepted by a retailer in accordance with this

 

 

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1paragraph may be used by that retailer to satisfy Retailers'
2Occupation Tax liability (but not in satisfaction of penalty
3or interest) in the amount claimed in the certification, not
4to exceed 6.25% of the receipts subject to tax from a sale of
5aviation fuel. In addition, for a sale of aviation fuel to
6qualify to earn the Sustainable Aviation Fuel Purchase Credit,
7retailers must retain in their books and records a
8certification from the producer of the aviation fuel that the
9aviation fuel sold by the retailer and for which a sustainable
10aviation fuel purchase credit was earned meets the definition
11of sustainable aviation fuel under Section 3-87 of the Use Tax
12Act. The documentation must include detail sufficient for the
13Department to determine the number of gallons of sustainable
14aviation fuel sold.
15    The Department may require returns to be filed on a
16quarterly basis. If so required, a return for each calendar
17quarter shall be filed on or before the twentieth day of the
18calendar month following the end of such calendar quarter. The
19taxpayer shall also file a return with the Department for each
20of the first 2 two months of each calendar quarter, on or
21before the twentieth day of the following calendar month,
22stating:
23        1. The name of the seller;
24        2. The address of the principal place of business from
25    which he engages in the business of selling tangible
26    personal property at retail in this State;

 

 

10300HB4951sam002- 1025 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1026 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1027 -LRB103 38094 HLH 74177 a

1total sales of alcoholic liquor to that retailer no later than
2the 10th day of the month for the preceding month during which
3the transaction occurred. The distributor, importing
4distributor, or manufacturer shall notify the retailer as to
5the method by which the distributor, importing distributor, or
6manufacturer will provide the sales information. If the
7retailer is unable to receive the sales information by
8electronic means, the distributor, importing distributor, or
9manufacturer shall furnish the sales information by personal
10delivery or by mail. For purposes of this paragraph, the term
11"electronic means" includes, but is not limited to, the use of
12a secure Internet website, e-mail, or facsimile.
13    If a total amount of less than $1 is payable, refundable or
14creditable, such amount shall be disregarded if it is less
15than 50 cents and shall be increased to $1 if it is 50 cents or
16more.
17    Notwithstanding any other provision of this Act to the
18contrary, retailers subject to tax on cannabis shall file all
19cannabis tax returns and shall make all cannabis tax payments
20by electronic means in the manner and form required by the
21Department.
22    Beginning October 1, 1993, a taxpayer who has an average
23monthly tax liability of $150,000 or more shall make all
24payments required by rules of the Department by electronic
25funds transfer. Beginning October 1, 1994, a taxpayer who has
26an average monthly tax liability of $100,000 or more shall

 

 

10300HB4951sam002- 1028 -LRB103 38094 HLH 74177 a

1make all payments required by rules of the Department by
2electronic funds transfer. Beginning October 1, 1995, a
3taxpayer who has an average monthly tax liability of $50,000
4or more shall make all payments required by rules of the
5Department by electronic funds transfer. Beginning October 1,
62000, a taxpayer who has an annual tax liability of $200,000 or
7more shall make all payments required by rules of the
8Department by electronic funds transfer. The term "annual tax
9liability" shall be 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. The term "average monthly
13tax liability" shall be the sum of the taxpayer's liabilities
14under this Act, and under all other State and local occupation
15and use tax laws administered by the Department, for the
16immediately preceding calendar year divided by 12. Beginning
17on October 1, 2002, a taxpayer who has a tax liability in the
18amount set forth in subsection (b) of Section 2505-210 of the
19Department of Revenue Law shall make all payments required by
20rules of the Department by electronic funds transfer.
21    Before August 1 of each year beginning in 1993, the
22Department shall notify all taxpayers required to make
23payments by electronic funds transfer. All taxpayers required
24to make payments by electronic funds transfer shall make those
25payments for a minimum of one year beginning on October 1.
26    Any taxpayer not required to make payments by electronic

 

 

10300HB4951sam002- 1029 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1030 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1031 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1032 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1033 -LRB103 38094 HLH 74177 a

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

 

 

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

 

 

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

 

 

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

 

 

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1whichever is greater, which is allowed to reimburse the
2retailer for the expenses incurred in keeping records,
3preparing and filing returns, remitting the tax and supplying
4data to the Department on request. On and after January 1,
52021, a certified service provider, as defined in the Leveling
6the Playing Field for Illinois Retail Act, filing the return
7under this Section on behalf of a remote retailer shall, at the
8time of such return, pay to the Department the amount of tax
9imposed by this Act less a discount of 1.75%. A remote retailer
10using a certified service provider to file a return on its
11behalf, as provided in the Leveling the Playing Field for
12Illinois Retail Act, is not eligible for the discount.
13Beginning with returns due on or after January 1, 2025, the
14vendor's discount allowed in this Section, the Service
15Occupation Tax Act, the Use Tax Act, and the Service Use Tax
16Act, including any local tax administered by the Department
17and reported on the same return, shall not exceed $1,000 per
18month in the aggregate for returns other than transaction
19returns filed during the month. When determining the discount
20allowed under this Section, retailers shall include the amount
21of tax that would have been due at the 1% rate but for the 0%
22rate imposed under Public Act 102-700. When determining the
23discount allowed under this Section, retailers shall include
24the amount of tax that would have been due at the 6.25% rate
25but for the 1.25% rate imposed on sales tax holiday items under
26Public Act 102-700. The discount under this Section is not

 

 

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1allowed for the 1.25% portion of taxes paid on aviation fuel
2that is subject to the revenue use requirements of 49 U.S.C.
347107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to
4Section 2d of this Act shall be included in the amount on which
5such 2.1% or 1.75% discount is computed. In the case of
6retailers who report and pay the tax on a transaction by
7transaction basis, as provided in this Section, such discount
8shall be taken with each such tax remittance instead of when
9such retailer files his periodic return, but, beginning with
10returns due on or after January 1, 2025, the vendor's discount
11allowed under this Section and the Use Tax Act, including any
12local tax administered by the Department and reported on the
13same transaction return, shall not exceed $1,000 per month for
14all transaction returns filed during the month. The discount
15allowed under this Section is allowed only for returns that
16are filed in the manner required by this Act. The Department
17may disallow the discount for retailers whose certificate of
18registration is revoked at the time the return is filed, but
19only if the Department's decision to revoke the certificate of
20registration has become final.
21    Before October 1, 2000, if the taxpayer's average monthly
22tax liability to the Department under this Act, the Use Tax
23Act, the Service Occupation Tax Act, and the Service Use Tax
24Act, excluding any liability for prepaid sales tax to be
25remitted in accordance with Section 2d of this Act, was
26$10,000 or more during the preceding 4 complete calendar

 

 

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1quarters, he shall file a return with the Department each
2month by the 20th day of the month next following the month
3during which such tax liability is incurred and shall make
4payments to the Department on or before the 7th, 15th, 22nd and
5last day of the month during which such liability is incurred.
6On and after October 1, 2000, if the taxpayer's average
7monthly tax liability to the Department under this Act, the
8Use Tax Act, the Service Occupation Tax Act, and the Service
9Use Tax Act, excluding any liability for prepaid sales tax to
10be remitted in accordance with Section 2d of this Act, was
11$20,000 or more during the preceding 4 complete calendar
12quarters, he shall file a return with the Department each
13month by the 20th day of the month next following the month
14during which such tax liability is incurred and shall make
15payment to the Department on or before the 7th, 15th, 22nd and
16last day of the month during which such liability is incurred.
17If the month during which such tax liability is incurred began
18prior to January 1, 1985, each payment shall be in an amount
19equal to 1/4 of the taxpayer's actual liability for the month
20or an amount set by the Department not to exceed 1/4 of the
21average monthly liability of the taxpayer to the Department
22for the preceding 4 complete calendar quarters (excluding the
23month of highest liability and the month of lowest liability
24in such 4 quarter period). If the month during which such tax
25liability is incurred begins on or after January 1, 1985 and
26prior to January 1, 1987, each payment shall be in an amount

 

 

10300HB4951sam002- 1040 -LRB103 38094 HLH 74177 a

1equal to 22.5% of the taxpayer's actual liability for the
2month or 27.5% of the taxpayer's liability for the same
3calendar month of the preceding year. If the month during
4which such tax liability is incurred begins on or after
5January 1, 1987 and prior to January 1, 1988, each payment
6shall be in an amount equal to 22.5% of the taxpayer's actual
7liability for the month or 26.25% of the taxpayer's liability
8for the same calendar month of the preceding year. If the month
9during which such tax liability is incurred begins on or after
10January 1, 1988, and prior to January 1, 1989, or begins on or
11after January 1, 1996, each payment shall be in an amount equal
12to 22.5% of the taxpayer's actual liability for the month or
1325% of the taxpayer's liability for the same calendar month of
14the preceding year. If the month during which such tax
15liability is incurred begins on or after January 1, 1989, and
16prior to January 1, 1996, each payment shall be in an amount
17equal to 22.5% of the taxpayer's actual liability for the
18month or 25% of the taxpayer's liability for the same calendar
19month of the preceding year or 100% of the taxpayer's actual
20liability for the quarter monthly reporting period. The amount
21of such quarter monthly payments shall be credited against the
22final tax liability of the taxpayer's return for that month.
23Before October 1, 2000, once applicable, the requirement of
24the making of quarter monthly payments to the Department by
25taxpayers having an average monthly tax liability of $10,000
26or more as determined in the manner provided above shall

 

 

10300HB4951sam002- 1041 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1042 -LRB103 38094 HLH 74177 a

1to anticipate that his average monthly tax liability for the
2reasonably foreseeable future will fall below the $20,000
3threshold stated above, then such taxpayer may petition the
4Department for a change in such taxpayer's reporting status.
5The Department shall change such taxpayer's reporting status
6unless it finds that such change is seasonal in nature and not
7likely to be long term. Quarter monthly payment status shall
8be determined under this paragraph as if the rate reduction to
90% in Public Act 102-700 on food for human consumption that is
10to be consumed off the premises where it is sold (other than
11alcoholic beverages, food consisting of or infused with adult
12use cannabis, soft drinks, and food that has been prepared for
13immediate consumption) had not occurred. For quarter monthly
14payments due under this paragraph on or after July 1, 2023 and
15through June 30, 2024, "25% of the taxpayer's liability for
16the same calendar month of the preceding year" shall be
17determined as if the rate reduction to 0% in Public Act 102-700
18had not occurred. Quarter monthly payment status shall be
19determined under this paragraph as if the rate reduction to
201.25% in Public Act 102-700 on sales tax holiday items had not
21occurred. For quarter monthly payments due on or after July 1,
222023 and through June 30, 2024, "25% of the taxpayer's
23liability for the same calendar month of the preceding year"
24shall be determined as if the rate reduction to 1.25% in Public
25Act 102-700 on sales tax holiday items had not occurred. If any
26such quarter monthly payment is not paid at the time or in the

 

 

10300HB4951sam002- 1043 -LRB103 38094 HLH 74177 a

1amount required by this Section, then the taxpayer shall be
2liable for penalties and interest on the difference between
3the minimum amount due as a payment and the amount of such
4quarter monthly payment actually and timely paid, except
5insofar as the taxpayer has previously made payments for that
6month to the Department in excess of the minimum payments
7previously due as provided in this Section. The Department
8shall make reasonable rules and regulations to govern the
9quarter monthly payment amount and quarter monthly payment
10dates for taxpayers who file on other than a calendar monthly
11basis.
12    The provisions of this paragraph apply before October 1,
132001. Without regard to whether a taxpayer is required to make
14quarter monthly payments as specified above, any taxpayer who
15is required by Section 2d of this Act to collect and remit
16prepaid taxes and has collected prepaid taxes which average in
17excess of $25,000 per month during the preceding 2 complete
18calendar quarters, shall file a return with the Department as
19required by Section 2f and shall make payments to the
20Department on or before the 7th, 15th, 22nd and last day of the
21month during which such liability is incurred. If the month
22during which such tax liability is incurred began prior to
23September 1, 1985 (the effective date of Public Act 84-221),
24each payment shall be in an amount not less than 22.5% of the
25taxpayer's actual liability under Section 2d. If the month
26during which such tax liability is incurred begins on or after

 

 

10300HB4951sam002- 1044 -LRB103 38094 HLH 74177 a

1January 1, 1986, each payment shall be in an amount equal to
222.5% of the taxpayer's actual liability for the month or
327.5% of the taxpayer's liability for the same calendar month
4of the preceding calendar year. If the month during which such
5tax liability is incurred begins on or after January 1, 1987,
6each payment shall be in an amount equal to 22.5% of the
7taxpayer's actual liability for the month or 26.25% of the
8taxpayer's liability for the same calendar month of the
9preceding year. The amount of such quarter monthly payments
10shall be credited against the final tax liability of the
11taxpayer's return for that month filed under this Section or
12Section 2f, as the case may be. Once applicable, the
13requirement of the making of quarter monthly payments to the
14Department pursuant to this paragraph shall continue until
15such taxpayer's average monthly prepaid tax collections during
16the preceding 2 complete calendar quarters is $25,000 or less.
17If any such quarter monthly payment is not paid at the time or
18in the amount required, the taxpayer shall be liable for
19penalties and interest on such difference, except insofar as
20the taxpayer has previously made payments for that month in
21excess of the minimum payments previously due.
22    The provisions of this paragraph apply on and after
23October 1, 2001. Without regard to whether a taxpayer is
24required to make quarter monthly payments as specified above,
25any taxpayer who is required by Section 2d of this Act to
26collect and remit prepaid taxes and has collected prepaid

 

 

10300HB4951sam002- 1045 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1046 -LRB103 38094 HLH 74177 a

1taxpayer's liabilities under this Act, the Use Tax Act, the
2Service Occupation Tax Act, and the Service Use Tax Act, as
3shown on an original monthly return, the Department shall, if
4requested by the taxpayer, issue to the taxpayer a credit
5memorandum no later than 30 days after the date of payment. The
6credit evidenced by such credit memorandum may be assigned by
7the taxpayer to a similar taxpayer under this Act, the Use Tax
8Act, the Service Occupation Tax Act, or the Service Use Tax
9Act, in accordance with reasonable rules and regulations to be
10prescribed by the Department. If no such request is made, the
11taxpayer may credit such excess payment against tax liability
12subsequently to be remitted to the Department under this Act,
13the Use Tax Act, the Service Occupation Tax Act, or the Service
14Use Tax Act, in accordance with reasonable rules and
15regulations prescribed by the Department. If the Department
16subsequently determined that all or any part of the credit
17taken was not actually due to the taxpayer, the taxpayer's
182.1% and 1.75% vendor's discount shall be reduced, if
19necessary, to reflect by 2.1% or 1.75% of the difference
20between the credit taken and that actually due, and that
21taxpayer shall be liable for penalties and interest on such
22difference.
23    If a retailer of motor fuel is entitled to a credit under
24Section 2d of this Act which exceeds the taxpayer's liability
25to the Department under this Act for the month for which the
26taxpayer is filing a return, the Department shall issue the

 

 

10300HB4951sam002- 1047 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1048 -LRB103 38094 HLH 74177 a

1on the selling price of tangible personal property other than
2aviation fuel sold on or after December 1, 2019. This
3exception for aviation fuel only applies for so long as the
4revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
547133 are binding on the State.
6    For aviation fuel sold on or after December 1, 2019, each
7month the Department shall pay into the State Aviation Program
8Fund 20% of the net revenue realized for the preceding month
9from the 6.25% general rate on the selling price of aviation
10fuel, less an amount estimated by the Department to be
11required for refunds of the 20% portion of the tax on aviation
12fuel under this Act, which amount shall be deposited into the
13Aviation Fuel Sales Tax Refund Fund. The Department shall only
14pay moneys into the State Aviation Program Fund and the
15Aviation Fuel Sales Tax Refund Fund under this Act for so long
16as the revenue use requirements of 49 U.S.C. 47107(b) and 49
17U.S.C. 47133 are binding on the State.
18    Beginning August 1, 2000, each month the Department shall
19pay into the Local Government Tax Fund 80% of the net revenue
20realized for the preceding month from the 1.25% rate on the
21selling price of motor fuel and gasohol. If, in any month, the
22tax on sales tax holiday items, as defined in Section 2-8, is
23imposed at the rate of 1.25%, then the Department shall pay 80%
24of the net revenue realized for that month from the 1.25% rate
25on the selling price of sales tax holiday items into the Local
26Government Tax Fund.

 

 

10300HB4951sam002- 1049 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1050 -LRB103 38094 HLH 74177 a

1used in this paragraph, the "average monthly deficit" shall be
2equal to the difference between the average monthly claims for
3payment by the fund and the average monthly revenues deposited
4into the fund, excluding payments made pursuant to this
5paragraph.
6    Beginning July 1, 2015, of the remainder of the moneys
7received by the Department under the Use Tax Act, the Service
8Use Tax Act, the Service Occupation Tax Act, and this Act, each
9month the Department shall deposit $500,000 into the State
10Crime Laboratory Fund.
11    Of the remainder of the moneys received by the Department
12pursuant to this Act, (a) 1.75% thereof shall be paid into the
13Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
14and after July 1, 1989, 3.8% thereof shall be paid into the
15Build Illinois Fund; provided, however, that if in any fiscal
16year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
17may be, of the moneys received by the Department and required
18to be paid into the Build Illinois Fund pursuant to this Act,
19Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
20Act, and Section 9 of the Service Occupation Tax Act, such Acts
21being hereinafter called the "Tax Acts" and such aggregate of
222.2% or 3.8%, as the case may be, of moneys being hereinafter
23called the "Tax Act Amount", and (2) the amount transferred to
24the Build Illinois Fund from the State and Local Sales Tax
25Reform Fund shall be less than the Annual Specified Amount (as
26hereinafter defined), an amount equal to the difference shall

 

 

10300HB4951sam002- 1051 -LRB103 38094 HLH 74177 a

1be immediately paid into the Build Illinois Fund from other
2moneys received by the Department pursuant to the Tax Acts;
3the "Annual Specified Amount" means the amounts specified
4below for fiscal years 1986 through 1993:
5Fiscal YearAnnual Specified Amount
61986$54,800,000
71987$76,650,000
81988$80,480,000
91989$88,510,000
101990$115,330,000
111991$145,470,000
121992$182,730,000
131993$206,520,000;
14and means the Certified Annual Debt Service Requirement (as
15defined in Section 13 of the Build Illinois Bond Act) or the
16Tax Act Amount, whichever is greater, for fiscal year 1994 and
17each fiscal year thereafter; and further provided, that if on
18the last business day of any month the sum of (1) the Tax Act
19Amount required to be deposited into the Build Illinois Bond
20Account in the Build Illinois Fund during such month and (2)
21the amount transferred to the Build Illinois Fund from the
22State and Local Sales Tax Reform Fund shall have been less than
231/12 of the Annual Specified Amount, an amount equal to the
24difference shall be immediately paid into the Build Illinois
25Fund from other moneys received by the Department pursuant to
26the Tax Acts; and, further provided, that in no event shall the

 

 

10300HB4951sam002- 1052 -LRB103 38094 HLH 74177 a

1payments required under the preceding proviso result in
2aggregate payments into the Build Illinois Fund pursuant to
3this clause (b) for any fiscal year in excess of the greater of
4(i) the Tax Act Amount or (ii) the Annual Specified Amount for
5such fiscal year. The amounts payable into the Build Illinois
6Fund under clause (b) of the first sentence in this paragraph
7shall be payable only until such time as the aggregate amount
8on deposit under each trust indenture securing Bonds issued
9and outstanding pursuant to the Build Illinois Bond Act is
10sufficient, taking into account any future investment income,
11to fully provide, in accordance with such indenture, for the
12defeasance of or the payment of the principal of, premium, if
13any, and interest on the Bonds secured by such indenture and on
14any Bonds expected to be issued thereafter and all fees and
15costs payable with respect thereto, all as certified by the
16Director of the Bureau of the Budget (now Governor's Office of
17Management and Budget). If on the last business day of any
18month in which Bonds are outstanding pursuant to the Build
19Illinois Bond Act, the aggregate of moneys deposited in the
20Build Illinois Bond Account in the Build Illinois Fund in such
21month shall be less than the amount required to be transferred
22in such month from the Build Illinois Bond Account to the Build
23Illinois Bond Retirement and Interest Fund pursuant to Section
2413 of the Build Illinois Bond Act, an amount equal to such
25deficiency shall be immediately paid from other moneys
26received by the Department pursuant to the Tax Acts to the

 

 

10300HB4951sam002- 1053 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1054 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1055 -LRB103 38094 HLH 74177 a

12022300,000,000
22023300,000,000
32024 300,000,000
42025 300,000,000
52026 300,000,000
62027 375,000,000
72028 375,000,000
82029 375,000,000
92030 375,000,000
102031 375,000,000
112032 375,000,000
122033375,000,000
132034375,000,000
142035375,000,000
152036450,000,000
16and
17each fiscal year
18thereafter that bonds
19are outstanding under
20Section 13.2 of the
21Metropolitan Pier and
22Exposition Authority Act,
23but not after fiscal year 2060.
24    Beginning July 20, 1993 and in each month of each fiscal
25year thereafter, one-eighth of the amount requested in the
26certificate of the Chairman of the Metropolitan Pier and

 

 

10300HB4951sam002- 1056 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1057 -LRB103 38094 HLH 74177 a

1enacted, beginning July 1, 1993 and ending on September 30,
22013, the Department shall each month pay into the Illinois
3Tax Increment Fund 0.27% of 80% of the net revenue realized for
4the preceding month from the 6.25% general rate on the selling
5price of tangible personal property.
6    Subject to payment of amounts into the Build Illinois
7Fund, the McCormick Place Expansion Project Fund, and the
8Illinois Tax Increment Fund pursuant to the preceding
9paragraphs or in any amendments to this Section hereafter
10enacted, beginning on the first day of the first calendar
11month to occur on or after August 26, 2014 (the effective date
12of Public Act 98-1098), each month, from the collections made
13under Section 9 of the Use Tax Act, Section 9 of the Service
14Use Tax Act, Section 9 of the Service Occupation Tax Act, and
15Section 3 of the Retailers' Occupation Tax Act, the Department
16shall pay into the Tax Compliance and Administration Fund, to
17be used, subject to appropriation, to fund additional auditors
18and compliance personnel at the Department of Revenue, an
19amount equal to 1/12 of 5% of 80% of the cash receipts
20collected during the preceding fiscal year by the Audit Bureau
21of the Department under the Use Tax Act, the Service Use Tax
22Act, the Service Occupation Tax Act, the Retailers' Occupation
23Tax Act, and associated local occupation and use taxes
24administered by the Department.
25    Subject to payments of amounts into the Build Illinois
26Fund, the McCormick Place Expansion Project Fund, the Illinois

 

 

10300HB4951sam002- 1058 -LRB103 38094 HLH 74177 a

1Tax Increment Fund, the Energy Infrastructure Fund, and the
2Tax Compliance and Administration Fund as provided in this
3Section, beginning on July 1, 2018 the Department shall pay
4each month into the Downstate Public Transportation Fund the
5moneys required to be so paid under Section 2-3 of the
6Downstate Public Transportation Act.
7    Subject to successful execution and delivery of a
8public-private agreement between the public agency and private
9entity and completion of the civic build, beginning on July 1,
102023, of the remainder of the moneys received by the
11Department under the Use Tax Act, the Service Use Tax Act, the
12Service Occupation Tax Act, and this Act, the Department shall
13deposit the following specified deposits in the aggregate from
14collections under the Use Tax Act, the Service Use Tax Act, the
15Service Occupation Tax Act, and the Retailers' Occupation Tax
16Act, as required under Section 8.25g of the State Finance Act
17for distribution consistent with the Public-Private
18Partnership for Civic and Transit Infrastructure Project Act.
19The moneys received by the Department pursuant to this Act and
20required to be deposited into the Civic and Transit
21Infrastructure Fund are subject to the pledge, claim and
22charge set forth in Section 25-55 of the Public-Private
23Partnership for Civic and Transit Infrastructure Project Act.
24As used in this paragraph, "civic build", "private entity",
25"public-private agreement", and "public agency" have the
26meanings provided in Section 25-10 of the Public-Private

 

 

10300HB4951sam002- 1059 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1060 -LRB103 38094 HLH 74177 a

1Illinois Tax Increment Fund, and the Tax Compliance and
2Administration Fund as provided in this Section, the
3Department shall pay each month into the Road Fund the amount
4estimated to represent 16% of the net revenue realized from
5the taxes imposed on motor fuel and gasohol. Beginning July 1,
62022 and until July 1, 2023, subject to the payment of amounts
7into the County and Mass Transit District Fund, the Local
8Government Tax Fund, the Build Illinois Fund, the McCormick
9Place Expansion Project Fund, the Illinois Tax Increment 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 32% of the net
13revenue realized from the taxes imposed on motor fuel and
14gasohol. Beginning July 1, 2023 and until July 1, 2024,
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, and the Tax Compliance
19and Administration Fund as provided in this Section, the
20Department shall pay each month into the Road Fund the amount
21estimated to represent 48% of the net revenue realized from
22the taxes imposed on motor fuel and gasohol. Beginning July 1,
232024 and until July 1, 2025, subject to the payment of amounts
24into the County and Mass Transit District Fund, the Local
25Government Tax Fund, the Build Illinois Fund, the McCormick
26Place Expansion Project Fund, the Illinois Tax Increment Fund,

 

 

10300HB4951sam002- 1061 -LRB103 38094 HLH 74177 a

1and the Tax Compliance and Administration Fund as provided in
2this Section, the Department shall pay each month into the
3Road Fund the amount estimated to represent 64% of the net
4revenue realized from the taxes imposed on motor fuel and
5gasohol. Beginning on July 1, 2025, subject to the payment of
6amounts into the County and Mass Transit District Fund, the
7Local Government Tax Fund, the Build Illinois Fund, the
8McCormick Place Expansion Project Fund, the Illinois Tax
9Increment Fund, and the Tax Compliance and Administration Fund
10as provided in this Section, the Department shall pay each
11month into the Road Fund the amount estimated to represent 80%
12of the net revenue realized from the taxes imposed on motor
13fuel and gasohol. As used in this paragraph "motor fuel" has
14the meaning given to that term in Section 1.1 of the Motor Fuel
15Tax Law, and "gasohol" has the meaning given to that term in
16Section 3-40 of the Use Tax Act.
17    Of the remainder of the moneys received by the Department
18pursuant to this Act, 75% thereof shall be paid into the State
19treasury and 25% shall be reserved in a special account and
20used only for the transfer to the Common School Fund as part of
21the monthly transfer from the General Revenue Fund in
22accordance with Section 8a of the State Finance Act.
23    The Department may, upon separate written notice to a
24taxpayer, require the taxpayer to prepare and file with the
25Department on a form prescribed by the Department within not
26less than 60 days after receipt of the notice an annual

 

 

10300HB4951sam002- 1062 -LRB103 38094 HLH 74177 a

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

 

 

10300HB4951sam002- 1063 -LRB103 38094 HLH 74177 a

1    covered by the annual return for each month or fraction of
2    a month until such return is filed as required, the
3    penalty to be assessed and collected in the same manner as
4    any other penalty provided for in this Act.
5        (ii) On and after January 1, 1994, the taxpayer shall
6    be liable for a penalty as described in Section 3-4 of the
7    Uniform Penalty and Interest Act.
8    The chief executive officer, proprietor, owner, or highest
9ranking manager shall sign the annual return to certify the
10accuracy of the information contained therein. Any person who
11willfully signs the annual return containing false or
12inaccurate information shall be guilty of perjury and punished
13accordingly. The annual return form prescribed by the
14Department shall include a warning that the person signing the
15return may be liable for perjury.
16    The provisions of this Section concerning the filing of an
17annual information return do not apply to a retailer who is not
18required to file an income tax return with the United States
19Government.
20    As soon as possible after the first day of each month, upon
21certification of the Department of Revenue, the Comptroller
22shall order transferred and the Treasurer shall transfer from
23the General Revenue Fund to the Motor Fuel Tax Fund an amount
24equal to 1.7% of 80% of the net revenue realized under this Act
25for the second preceding month. Beginning April 1, 2000, this
26transfer is no longer required and shall not be made.

 

 

10300HB4951sam002- 1064 -LRB103 38094 HLH 74177 a

1    Net revenue realized for a month shall be the revenue
2collected by the State pursuant to this Act, less the amount
3paid out during that month as refunds to taxpayers for
4overpayment of liability.
5    For greater simplicity of administration, manufacturers,
6importers and wholesalers whose products are sold at retail in
7Illinois by numerous retailers, and who wish to do so, may
8assume the responsibility for accounting and paying to the
9Department all tax accruing under this Act with respect to
10such sales, if the retailers who are affected do not make
11written objection to the Department to this arrangement.
12    Any person who promotes, organizes, or provides retail
13selling space for concessionaires or other types of sellers at
14the Illinois State Fair, DuQuoin State Fair, county fairs,
15local fairs, art shows, flea markets, and similar exhibitions
16or events, including any transient merchant as defined by
17Section 2 of the Transient Merchant Act of 1987, is required to
18file a report with the Department providing the name of the
19merchant's business, the name of the person or persons engaged
20in merchant's business, the permanent address and Illinois
21Retailers Occupation Tax Registration Number of the merchant,
22the dates and location of the event, and other reasonable
23information that the Department may require. The report must
24be filed not later than the 20th day of the month next
25following the month during which the event with retail sales
26was held. Any person who fails to file a report required by

 

 

10300HB4951sam002- 1065 -LRB103 38094 HLH 74177 a

1this Section commits a business offense and is subject to a
2fine not to exceed $250.
3    Any person engaged in the business of selling tangible
4personal property at retail as a concessionaire or other type
5of seller at the Illinois State Fair, county fairs, art shows,
6flea markets, and similar exhibitions or events, or any
7transient merchants, as defined by Section 2 of the Transient
8Merchant Act of 1987, may be required to make a daily report of
9the amount of such sales to the Department and to make a daily
10payment of the full amount of tax due. The Department shall
11impose this requirement when it finds that there is a
12significant risk of loss of revenue to the State at such an
13exhibition or event. Such a finding shall be based on evidence
14that a substantial number of concessionaires or other sellers
15who are not residents of Illinois will be engaging in the
16business of selling tangible personal property at retail at
17the exhibition or event, or other evidence of a significant
18risk of loss of revenue to the State. The Department shall
19notify concessionaires and other sellers affected by the
20imposition of this requirement. In the absence of notification
21by the Department, the concessionaires and other sellers shall
22file their returns as otherwise required in this Section.
23(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60,
24Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
2565-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.
261-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363,

 

 

10300HB4951sam002- 1066 -LRB103 38094 HLH 74177 a

1eff. 7-28-23; revised 9-27-23.)
 
2    Section 110-25. The Prepaid Wireless 9-1-1 Surcharge Act
3is amended by changing Section 20 as follows:
 
4    (50 ILCS 753/20)
5    Sec. 20. Administration of prepaid wireless 9-1-1
6surcharge.
7    (a) In the administration and enforcement of this Act, the
8provisions of Sections 2a, 2b, 2c, 3, 4, 5, 5a, 5b, 5c, 5d, 5e,
95f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 12 of the
10Retailers' Occupation Tax Act that are not inconsistent with
11this Act, and Section 3-7 of the Uniform Penalty and Interest
12Act shall apply, as far as practicable, to the subject matter
13of this Act to the same extent as if those provisions were
14included in this Act. References to "taxes" in these
15incorporated Sections shall be construed to apply to the
16administration, payment, and remittance of all surcharges
17under this Act. The Department shall establish registration
18and payment procedures that substantially coincide with the
19registration and payment procedures that apply to the
20Retailers' Occupation Tax Act.
21    (b) A seller shall be permitted to deduct and retain 3% of
22prepaid wireless 9-1-1 surcharges that are collected by the
23seller from consumers and that are remitted and timely filed
24with the Department. Beginning with returns due on or after

 

 

10300HB4951sam002- 1067 -LRB103 38094 HLH 74177 a

1January 1, 2025, the 3% deduction allowed under this
2subsection, including any local surcharge administered by the
3Department and reported on the same return, shall not exceed
4$1,000 per month. Beginning January 1, 2018, the seller is
5allowed to deduct and retain a portion of the prepaid wireless
69-1-1 surcharges as authorized by this subsection only if the
7return is filed electronically as provided in Section 3 of the
8Retailers' Occupation Tax Act. Sellers who demonstrate that
9they do not have access to the Internet or demonstrate
10hardship in filing electronically may petition the Department
11to waive the electronic filing requirement.
12    (c) Other than the amounts for deposit into the Municipal
13Wireless Service Emergency Fund, the Department shall pay to
14the State Treasurer all prepaid wireless E911 charges,
15penalties, and interest collected under this Act for deposit
16into the Statewide 9-1-1 Fund. On or before the 25th day of
17each calendar month, the Department shall prepare and certify
18to the Comptroller the amount available to the Illinois State
19Police for distribution out of the Statewide 9-1-1 Fund. The
20amount certified shall be the amount (not including credit
21memoranda) collected during the second preceding calendar
22month by the Department plus an amount the Department
23determines is necessary to offset any amounts which were
24erroneously paid to a different taxing body. The amount paid
25to the Statewide 9-1-1 Fund shall not include any amount equal
26to the amount of refunds made during the second preceding

 

 

10300HB4951sam002- 1068 -LRB103 38094 HLH 74177 a

1calendar month by the Department of Revenue to retailers under
2this Act or any amount that the Department determines is
3necessary to offset any amounts which were payable to a
4different taxing body but were erroneously paid to the
5Statewide 9-1-1 Fund. The Illinois State Police shall
6distribute the funds in accordance with Section 30 of the
7Emergency Telephone Safety Act. The Department may deduct an
8amount, not to exceed 2% of remitted charges, to be
9transferred into the Tax Compliance and Administration Fund to
10reimburse the Department for its direct costs of administering
11the collection and remittance of prepaid wireless 9-1-1
12surcharges.
13    (d) The Department shall administer the collection of all
149-1-1 surcharges and may adopt and enforce reasonable rules
15relating to the administration and enforcement of the
16provisions of this Act as may be deemed expedient. The
17Department shall require all surcharges collected under this
18Act to be reported on existing forms or combined forms,
19including, but not limited to, Form ST-1. Any overpayments
20received by the Department for liabilities reported on
21existing or combined returns shall be applied as an
22overpayment of retailers' occupation tax, use tax, service
23occupation tax, or service use tax liability.
24    (e) If a home rule municipality having a population in
25excess of 500,000 as of the effective date of this amendatory
26Act of the 97th General Assembly imposes an E911 surcharge

 

 

10300HB4951sam002- 1069 -LRB103 38094 HLH 74177 a

1under subsection (a-5) of Section 15 of this Act, then the
2Department shall pay to the State Treasurer all prepaid
3wireless E911 charges, penalties, and interest collected for
4deposit into the Municipal Wireless Service Emergency Fund.
5All deposits into the Municipal Wireless Service Emergency
6Fund shall be held by the State Treasurer as ex officio
7custodian apart from all public moneys or funds of this State.
8Any interest attributable to moneys in the Fund must be
9deposited into the Fund. Moneys in the Municipal Wireless
10Service Emergency Fund are not subject to appropriation. On or
11before the 25th day of each calendar month, the Department
12shall prepare and certify to the Comptroller the amount
13available for disbursement to the home rule municipality out
14of the Municipal Wireless Service Emergency Fund. The amount
15to be paid to the Municipal Wireless Service Emergency Fund
16shall be the amount (not including credit memoranda) collected
17during the second preceding calendar month by the Department
18plus an amount the Department determines is necessary to
19offset any amounts which were erroneously paid to a different
20taxing body. The amount paid to the Municipal Wireless Service
21Emergency Fund shall not include any amount equal to the
22amount of refunds made during the second preceding calendar
23month by the Department to retailers under this Act or any
24amount that the Department determines is necessary to offset
25any amounts which were payable to a different taxing body but
26were erroneously paid to the Municipal Wireless Service

 

 

10300HB4951sam002- 1070 -LRB103 38094 HLH 74177 a

1Emergency Fund. Within 10 days after receipt by the
2Comptroller of the certification provided for in this
3subsection, the Comptroller shall cause the orders to be drawn
4for the respective amounts in accordance with the directions
5in the certification. The Department may deduct an amount, not
6to exceed 2% of remitted charges, to be transferred into the
7Tax Compliance and Administration Fund to reimburse the
8Department for its direct costs of administering the
9collection and remittance of prepaid wireless 9-1-1
10surcharges.
11(Source: P.A. 102-538, eff. 8-20-21.)
 
12
ARTICLE 115.

 
13    Section 115-5. The Business Corporation Act of 1983 is
14amended by changing Sections 15.35 and 15.65 as follows:
 
15    (805 ILCS 5/15.35)  (from Ch. 32, par. 15.35)
16    (Text of Section from P.A. 102-16 and 103-8)
17    Sec. 15.35. Franchise taxes payable by domestic
18corporations. For the privilege of exercising its franchises
19in this State, each domestic corporation shall pay to the
20Secretary of State the following franchise taxes, computed on
21the basis, at the rates and for the periods prescribed in this
22Act:
23        (a) An initial franchise tax at the time of filing its

 

 

10300HB4951sam002- 1071 -LRB103 38094 HLH 74177 a

1    first report of issuance of shares.
2        (b) An additional franchise tax at the time of filing
3    (1) a report of the issuance of additional shares, or (2) a
4    report of an increase in paid-in capital without the
5    issuance of shares, or (3) an amendment to the articles of
6    incorporation or a report of cumulative changes in paid-in
7    capital, whenever any amendment or such report discloses
8    an increase in its paid-in capital over the amount thereof
9    last reported in any document, other than an annual
10    report, interim annual report or final transition annual
11    report required by this Act to be filed in the office of
12    the Secretary of State.
13        (c) An additional franchise tax at the time of filing
14    a report of paid-in capital following a statutory merger
15    or consolidation, which discloses that the paid-in capital
16    of the surviving or new corporation immediately after the
17    merger or consolidation is greater than the sum of the
18    paid-in capital of all of the merged or consolidated
19    corporations as last reported by them in any documents,
20    other than annual reports, required by this Act to be
21    filed in the office of the Secretary of State; and in
22    addition, the surviving or new corporation shall be liable
23    for a further additional franchise tax on the paid-in
24    capital of each of the merged or consolidated corporations
25    as last reported by them in any document, other than an
26    annual report, required by this Act to be filed with the

 

 

10300HB4951sam002- 1072 -LRB103 38094 HLH 74177 a

1    Secretary of State from their taxable year end to the next
2    succeeding anniversary month or, in the case of a
3    corporation which has established an extended filing
4    month, the extended filing month of the surviving or new
5    corporation; however if the taxable year ends within the
6    2-month period immediately preceding the anniversary month
7    or, in the case of a corporation which has established an
8    extended filing month, the extended filing month of the
9    surviving or new corporation the tax will be computed to
10    the anniversary month or, in the case of a corporation
11    which has established an extended filing month, the
12    extended filing month of the surviving or new corporation
13    in the next succeeding calendar year.
14        (d) An annual franchise tax payable each year with the
15    annual report which the corporation is required by this
16    Act to file.
17    On or after January 1, 2020 and prior to January 1, 2021,
18the first $30 in liability is exempt from the tax imposed under
19this Section. On or after January 1, 2021, and prior to January
201, 2024, the first $1,000 in liability is exempt from the tax
21imposed under this Section. On or after January 1, 2024, and
22before January 1, 2025, the first $5,000 in liability is
23exempt from the tax imposed under this Section. On and after
24January 1, 2025, the first $10,000 in liability is exempt from
25the tax imposed under this Section.
26(Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
 

 

 

10300HB4951sam002- 1073 -LRB103 38094 HLH 74177 a

1    (Text of Section from P.A. 102-282, 102-558, and 103-8)
2    Sec. 15.35. Franchise taxes payable by domestic
3corporations. For the privilege of exercising its franchises
4in this State, each domestic corporation shall pay to the
5Secretary of State the following franchise taxes, computed on
6the basis, at the rates and for the periods prescribed in this
7Act:
8        (a) An initial franchise tax at the time of filing its
9    first report of issuance of shares.
10        (b) An additional franchise tax at the time of filing
11    (1) a report of the issuance of additional shares, or (2) a
12    report of an increase in paid-in capital without the
13    issuance of shares, or (3) an amendment to the articles of
14    incorporation or a report of cumulative changes in paid-in
15    capital, whenever any amendment or such report discloses
16    an increase in its paid-in capital over the amount thereof
17    last reported in any document, other than an annual
18    report, interim annual report or final transition annual
19    report required by this Act to be filed in the office of
20    the Secretary of State.
21        (c) An additional franchise tax at the time of filing
22    a report of paid-in capital following a statutory merger
23    or consolidation, which discloses that the paid-in capital
24    of the surviving or new corporation immediately after the
25    merger or consolidation is greater than the sum of the

 

 

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1    paid-in capital of all of the merged or consolidated
2    corporations as last reported by them in any documents,
3    other than annual reports, required by this Act to be
4    filed in the office of the Secretary of State; and in
5    addition, the surviving or new corporation shall be liable
6    for a further additional franchise tax on the paid-in
7    capital of each of the merged or consolidated corporations
8    as last reported by them in any document, other than an
9    annual report, required by this Act to be filed with the
10    Secretary of State from their taxable year end to the next
11    succeeding anniversary month or, in the case of a
12    corporation which has established an extended filing
13    month, the extended filing month of the surviving or new
14    corporation; however if the taxable year ends within the
15    2-month period immediately preceding the anniversary month
16    or, in the case of a corporation which has established an
17    extended filing month, the extended filing month of the
18    surviving or new corporation the tax will be computed to
19    the anniversary month or, in the case of a corporation
20    which has established an extended filing month, the
21    extended filing month of the surviving or new corporation
22    in the next succeeding calendar year.
23        (d) An annual franchise tax payable each year with the
24    annual report which the corporation is required by this
25    Act to file.
26    On or after January 1, 2020 and prior to January 1, 2021,

 

 

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1the first $30 in liability is exempt from the tax imposed under
2this Section. On or after January 1, 2021 and prior to January
31, 2024, the first $1,000 in liability is exempt from the tax
4imposed under this Section. On or after January 1, 2024, and
5before January 1, 2025, the first $5,000 in liability is
6exempt from the tax imposed under this Section. On and after
7January 1, 2025, the first $10,000 in liability is exempt from
8the tax imposed under this Section.
9(Source: P.A. 102-282, eff. 1-1-22; 102-558, eff. 8-20-21;
10103-8, eff. 6-7-23.)
 
11    (805 ILCS 5/15.65)  (from Ch. 32, par. 15.65)
12    Sec. 15.65. Franchise taxes payable by foreign
13corporations. For the privilege of exercising its authority to
14transact such business in this State as set out in its
15application therefor or any amendment thereto, each foreign
16corporation shall pay to the Secretary of State the following
17franchise taxes, computed on the basis, at the rates and for
18the periods prescribed in this Act:
19        (a) An initial franchise tax at the time of filing its
20    application for authority to transact business in this
21    State.
22        (b) An additional franchise tax at the time of filing
23    (1) a report of the issuance of additional shares, or (2) a
24    report of an increase in paid-in capital without the
25    issuance of shares, or (3) a report of cumulative changes

 

 

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1    in paid-in capital or a report of an exchange or
2    reclassification of shares, whenever any such report
3    discloses an increase in its paid-in capital over the
4    amount thereof last reported in any document, other than
5    an annual report, interim annual report or final
6    transition annual report, required by this Act to be filed
7    in the office of the Secretary of State.
8        (c) Whenever the corporation shall be a party to a
9    statutory merger and shall be the surviving corporation,
10    an additional franchise tax at the time of filing its
11    report following merger, if such report discloses that the
12    amount represented in this State of its paid-in capital
13    immediately after the merger is greater than the aggregate
14    of the amounts represented in this State of the paid-in
15    capital of such of the merged corporations as were
16    authorized to transact business in this State at the time
17    of the merger, as last reported by them in any documents,
18    other than annual reports, required by this Act to be
19    filed in the office of the Secretary of State; and in
20    addition, the surviving corporation shall be liable for a
21    further additional franchise tax on the paid-in capital of
22    each of the merged corporations as last reported by them
23    in any document, other than an annual report, required by
24    this Act to be filed with the Secretary of State, from
25    their taxable year end to the next succeeding anniversary
26    month or, in the case of a corporation which has

 

 

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1    established an extended filing month, the extended filing
2    month of the surviving corporation; however if the taxable
3    year ends within the 2-month period immediately preceding
4    the anniversary month or the extended filing month of the
5    surviving corporation, the tax will be computed to the
6    anniversary or, extended filing month of the surviving
7    corporation in the next succeeding calendar year.
8        (d) An annual franchise tax payable each year with any
9    annual report which the corporation is required by this
10    Act to file.
11    On or after January 1, 2020 and prior to January 1, 2021,
12the first $30 in liability is exempt from the tax imposed under
13this Section. On or after January 1, 2021 and before January 1,
142024, the first $1,000 in liability is exempt from the tax
15imposed under this Section. On and after January 1, 2024 and
16before January 1, 2025, the first $5,000 in liability is
17exempt from the tax imposed under this Section. On and after
18January 1, 2025, the first $10,000 in liability is exempt from
19the tax imposed under this Section.
20(Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21;
21102-558, eff. 8-20-21; 102-813, eff. 5-13-22.)
 
22
ARTICLE 120.

 
23    Section 120-5. The Sports Wagering Act is amended by
24changing Section 25-90 as follows:
 

 

 

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1    (230 ILCS 45/25-90)
2    Sec. 25-90. Tax; Sports Wagering Fund.
3    (a) For the privilege of holding a license to operate
4sports wagering under this Act until June 30, 2024, this State
5shall impose and collect 15% of a master sports wagering
6licensee's adjusted gross sports wagering receipts from sports
7wagering. The accrual method of accounting shall be used for
8purposes of calculating the amount of the tax owed by the
9licensee.
10    The taxes levied and collected pursuant to this subsection
11(a) are due and payable to the Board no later than the last day
12of the month following the calendar month in which the
13adjusted gross sports wagering receipts were received and the
14tax obligation was accrued.
15    (a-5) In addition to the tax imposed under subsection (a)
16of this Section, for the privilege of holding a license to
17operate sports wagering under this Act, the State shall impose
18and collect 2% of the adjusted gross receipts from sports
19wagers that are placed within a home rule county with a
20population of over 3,000,000 inhabitants, which shall be paid,
21subject to appropriation from the General Assembly, from the
22Sports Wagering Fund to that home rule county for the purpose
23of enhancing the county's criminal justice system.
24    (b) The Sports Wagering Fund is hereby created as a
25special fund in the State treasury. Except as otherwise

 

 

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1provided in this Act, all moneys collected under this Act by
2the Board shall be deposited into the Sports Wagering Fund.
3Through August 25, 2024, on On the 25th of each month, any
4moneys remaining in the Sports Wagering Fund in excess of the
5anticipated monthly expenditures from the Fund through the
6next month, as certified by the Board to the State
7Comptroller, shall be transferred by the State Comptroller and
8the State Treasurer to the Capital Projects Fund. Beginning
9September 25, 2024, on the 25th of each month, of the moneys
10remaining in the Sports Wagering Fund in excess of the
11anticipated monthly expenditures from the Fund through the
12next month, as certified by the Board to the State
13Comptroller, the State Comptroller shall direct and the State
14Treasurer shall transfer 58% to the General Revenue Fund and
1542% to the Capital Projects Fund.
16    (c) Beginning with July 2021, and on a monthly basis
17thereafter, the Board shall certify to the State Comptroller
18the amount of license fees collected in the month for initial
19licenses issued under this Act, except for occupational
20licenses. As soon after certification as practicable, the
21State Comptroller shall direct and the State Treasurer shall
22transfer the certified amount from the Sports Wagering Fund to
23the Rebuild Illinois Projects Fund.
24    (d) Beginning on July 1, 2024, and for each 12-month
25period thereafter, for the privilege of holding a license to
26operate sports wagering under this Act, this State shall

 

 

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1impose privilege tax on the master sports licensee's adjusted
2gross sports wagering receipts based on the following rates:
3        20% of annual adjusted gross sports wagering receipts
4    up to and including $30,000,000.
5        25% of annual adjusted gross sports wagering receipts
6    in excess of $30,000,000 but not exceeding $50,000,000.
7        30% of annual adjusted gross sports wagering receipts
8    in excess of $50,000,000 but not exceeding $100,000,000.
9        35% of annual adjusted gross sports wagering receipts
10    in excess of $100,000,000 but not exceeding $200,000,000.
11        40% of annual adjusted gross sports wagering receipts
12    in excess of $200,000,000.
13    The accrual method of accounting shall be used for
14purposes of calculating the amount of the tax owed by the
15licensee.
16    The taxes levied and collected pursuant to this subsection
17are due and payable to the Board no later than the last day of
18the month following the calendar month in which the adjusted
19gross sports wagering receipts were received and the tax
20obligation was accrued.
21    (e) Annually, a master sports wagering licensee shall
22transmit to the Board an audit of the financial transactions
23and condition of the licensee's total operations.
24Additionally, within 90 days after the end of each quarter of
25each fiscal year, the master sports wagering licensee shall
26transmit to the Board a compliance report on engagement

 

 

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1procedures determined by the Board. All audits and compliance
2engagements shall be conducted by certified public accountants
3selected by the Board. Each certified public accountant must
4be registered in the State of Illinois under the Illinois
5Public Accounting Act. The compensation for each certified
6public accountant shall be paid directly by the master sports
7wagering licensee to the certified public accountant.
8(Source: P.A. 101-31, eff. 6-28-19; 102-16, eff. 6-17-21;
9102-687, eff. 12-17-21.)
 
10
ARTICLE 130.

 
11    Section 130-5. The Video Gaming Act is amended by changing
12Section 60 as follows:
 
13    (230 ILCS 40/60)
14    Sec. 60. Imposition and distribution of tax.
15    (a) A tax of 30% is imposed on net terminal income and
16shall be collected by the Board.
17    Of the tax collected under this subsection (a),
18five-sixths shall be deposited into the Capital Projects Fund
19and one-sixth shall be deposited into the Local Government
20Video Gaming Distributive Fund.
21    (b) Beginning on July 1, 2019, an additional tax of 3% is
22imposed on net terminal income and shall be collected by the
23Board.

 

 

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1    Beginning on July 1, 2020, an additional tax of 1% is
2imposed on net terminal income and shall be collected by the
3Board.
4    Beginning on July 1, 2024, an additional tax of 1% is
5imposed on net terminal income and shall be collected by the
6Board.
7    The tax collected under this subsection (b) shall be
8deposited into the Capital Projects Fund.
9    (c) Revenues generated from the play of video gaming
10terminals shall be deposited by the terminal operator, who is
11responsible for tax payments, in a specially created, separate
12bank account maintained by the video gaming terminal operator
13to allow for electronic fund transfers of moneys for tax
14payment.
15    (d) Each licensed establishment, licensed truck stop
16establishment, licensed large truck stop establishment,
17licensed fraternal establishment, and licensed veterans
18establishment shall maintain an adequate video gaming fund,
19with the amount to be determined by the Board.
20    (e) The State's percentage of net terminal income shall be
21reported and remitted to the Board within 15 days after the
2215th day of each month and within 15 days after the end of each
23month by the video terminal operator. A video terminal
24operator who falsely reports or fails to report the amount due
25required by this Section is guilty of a Class 4 felony and is
26subject to termination of his or her license by the Board. Each

 

 

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1video terminal operator shall keep a record of net terminal
2income in such form as the Board may require. All payments not
3remitted when due shall be paid together with a penalty
4assessment on the unpaid balance at a rate of 1.5% per month.
5(Source: P.A. 101-31, eff. 6-28-19.)
 
6
ARTICLE 135.

 
7    Section 135-5. The Property Tax Code is amended by
8changing Section 15-170 as follows:
 
9    (35 ILCS 200/15-170)
10    Sec. 15-170. Senior citizens homestead exemption.
11    (a) An annual homestead exemption limited, except as
12described here with relation to cooperatives or life care
13facilities, to a maximum reduction set forth below from the
14property's value, as equalized or assessed by the Department,
15is granted for property that is occupied as a residence by a
16person 65 years of age or older who is liable for paying real
17estate taxes on the property and is an owner of record of the
18property or has a legal or equitable interest therein as
19evidenced by a written instrument, except for a leasehold
20interest, other than a leasehold interest of land on which a
21single family residence is located, which is occupied as a
22residence by a person 65 years or older who has an ownership
23interest therein, legal, equitable or as a lessee, and on

 

 

10300HB4951sam002- 1084 -LRB103 38094 HLH 74177 a

1which he or she is liable for the payment of property taxes.
2Before taxable year 2004, the maximum reduction shall be
3$2,500 in counties with 3,000,000 or more inhabitants and
4$2,000 in all other counties. For taxable years 2004 through
52005, the maximum reduction shall be $3,000 in all counties.
6For taxable years 2006 and 2007, the maximum reduction shall
7be $3,500. For taxable years 2008 through 2011, the maximum
8reduction is $4,000 in all counties. For taxable year 2012,
9the maximum reduction is $5,000 in counties with 3,000,000 or
10more inhabitants and $4,000 in all other counties. For taxable
11years 2013 through 2016, the maximum reduction is $5,000 in
12all counties. For taxable years 2017 through 2022, the maximum
13reduction is $8,000 in counties with 3,000,000 or more
14inhabitants and $5,000 in all other counties. For taxable
15years 2023 and thereafter, the maximum reduction is $8,000 in
16counties with 3,000,000 or more inhabitants and counties that
17are contiguous to a county of 3,000,000 or more inhabitants
18and $5,000 in all other counties.
19    (b) For land improved with an apartment building owned and
20operated as a cooperative, the maximum reduction from the
21value of the property, as equalized by the Department, shall
22be multiplied by the number of apartments or units occupied by
23a person 65 years of age or older who is liable, by contract
24with the owner or owners of record, for paying property taxes
25on the property and is an owner of record of a legal or
26equitable interest in the cooperative apartment building,

 

 

10300HB4951sam002- 1085 -LRB103 38094 HLH 74177 a

1other than a leasehold interest. For land improved with a life
2care facility, the maximum reduction from the value of the
3property, as equalized by the Department, shall be multiplied
4by the number of apartments or units occupied by persons 65
5years of age or older, irrespective of any legal, equitable,
6or leasehold interest in the facility, who are liable, under a
7contract with the owner or owners of record of the facility,
8for paying property taxes on the property. In a cooperative or
9a life care facility where a homestead exemption has been
10granted, the cooperative association or the management firm of
11the cooperative or facility shall credit the savings resulting
12from that exemption only to the apportioned tax liability of
13the owner or resident who qualified for the exemption. Any
14person who willfully refuses to so credit the savings shall be
15guilty of a Class B misdemeanor. Under this Section and
16Sections 15-175, 15-176, and 15-177, "life care facility"
17means a facility, as defined in Section 2 of the Life Care
18Facilities Act, with which the applicant for the homestead
19exemption has a life care contract as defined in that Act.
20    (c) When a homestead exemption has been granted under this
21Section and the person qualifying subsequently becomes a
22resident of a facility licensed under the Assisted Living and
23Shared Housing Act, the Nursing Home Care Act, the Specialized
24Mental Health Rehabilitation Act of 2013, the ID/DD Community
25Care Act, or the MC/DD Act, the exemption shall continue so
26long as the residence continues to be occupied by the

 

 

10300HB4951sam002- 1086 -LRB103 38094 HLH 74177 a

1qualifying person's spouse if the spouse is 65 years of age or
2older, or if the residence remains unoccupied but is still
3owned by the person qualified for the homestead exemption.
4    (d) A person who will be 65 years of age during the current
5assessment year shall be eligible to apply for the homestead
6exemption during that assessment year. Application shall be
7made during the application period in effect for the county of
8his residence.
9    (e) Beginning with assessment year 2003, for taxes payable
10in 2004, property that is first occupied as a residence after
11January 1 of any assessment year by a person who is eligible
12for the senior citizens homestead exemption under this Section
13must be granted a pro-rata exemption for the assessment year.
14The amount of the pro-rata exemption is the exemption allowed
15in the county under this Section divided by 365 and multiplied
16by the number of days during the assessment year the property
17is occupied as a residence by a person eligible for the
18exemption under this Section. The chief county assessment
19officer must adopt reasonable procedures to establish
20eligibility for this pro-rata exemption.
21    (f) The assessor or chief county assessment officer may
22determine the eligibility of a life care facility to receive
23the benefits provided by this Section, by affidavit,
24application, visual inspection, questionnaire or other
25reasonable methods in order to ensure insure that the tax
26savings resulting from the exemption are credited by the

 

 

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1management firm to the apportioned tax liability of each
2qualifying resident. The assessor may request reasonable proof
3that the management firm has so credited the exemption.
4    (g) The chief county assessment officer of each county
5with less than 3,000,000 inhabitants shall provide to each
6person allowed a homestead exemption under this Section a form
7to designate any other person to receive a duplicate of any
8notice of delinquency in the payment of taxes assessed and
9levied under this Code on the property of the person receiving
10the exemption. The duplicate notice shall be in addition to
11the notice required to be provided to the person receiving the
12exemption, and shall be given in the manner required by this
13Code. The person filing the request for the duplicate notice
14shall pay a fee of $5 to cover administrative costs to the
15supervisor of assessments, who shall then file the executed
16designation with the county collector. Notwithstanding any
17other provision of this Code to the contrary, the filing of
18such an executed designation requires the county collector to
19provide duplicate notices as indicated by the designation. A
20designation may be rescinded by the person who executed such
21designation at any time, in the manner and form required by the
22chief county assessment officer.
23    (h) The assessor or chief county assessment officer may
24determine the eligibility of residential property to receive
25the homestead exemption provided by this Section by
26application, visual inspection, questionnaire or other

 

 

10300HB4951sam002- 1088 -LRB103 38094 HLH 74177 a

1reasonable methods. The determination shall be made in
2accordance with guidelines established by the Department.
3    (i) In counties with 3,000,000 or more inhabitants, for
4taxable years 2010 through 2018, and beginning again in
5taxable year 2024, each taxpayer who has been granted an
6exemption under this Section must reapply on an annual basis.
7    If a reapplication is required, then the chief county
8assessment officer shall mail the application to the taxpayer
9at least 60 days prior to the last day of the application
10period for the county.
11    For taxable years 2019 and thereafter through 2023, in
12counties with 3,000,000 or more inhabitants, a taxpayer who
13has been granted an exemption under this Section need not
14reapply. However, if the property ceases to be qualified for
15the exemption under this Section in any year for which a
16reapplication is not required under this Section, then the
17owner of record of the property shall notify the chief county
18assessment officer that the property is no longer qualified.
19In addition, for taxable years 2019 and thereafter through
202023, the chief county assessment officer of a county with
213,000,000 or more inhabitants shall enter into an
22intergovernmental agreement with the county clerk of that
23county and the Department of Public Health, as well as any
24other appropriate governmental agency, to obtain information
25that documents the death of a taxpayer who has been granted an
26exemption under this Section. Notwithstanding any other

 

 

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1provision of law, the county clerk and the Department of
2Public Health shall provide that information to the chief
3county assessment officer. The Department of Public Health
4shall supply this information no less frequently than every
5calendar quarter. Information concerning the death of a
6taxpayer may be shared with the county treasurer. The chief
7county assessment officer shall also enter into a data
8exchange agreement with the Social Security Administration or
9its agent to obtain access to the information regarding deaths
10in possession of the Social Security Administration. The chief
11county assessment officer shall, subject to the notice
12requirements under subsection (m) of Section 9-275, terminate
13the exemption under this Section if the information obtained
14indicates that the property is no longer qualified for the
15exemption. In counties with 3,000,000 or more inhabitants, the
16assessor and the county clerk recorder of deeds shall
17establish policies and practices for the regular exchange of
18information for the purpose of alerting the assessor whenever
19the transfer of ownership of any property receiving an
20exemption under this Section has occurred. When such a
21transfer occurs, the assessor shall mail a notice to the new
22owner of the property (i) informing the new owner that the
23exemption will remain in place through the year of the
24transfer, after which it will be canceled, and (ii) providing
25information pertaining to the rules for reapplying for the
26exemption if the owner qualifies. In counties with 3,000,000

 

 

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1or more inhabitants, the chief county assessment official
2shall conduct, by no later than December 31 of the first year
3of each reassessment cycle, as determined by Section 9-220, a
4review audits of all exemptions granted under this Section for
5the preceding reassessment cycle under this Section no later
6than December 31, 2022 and no later than December 31, 2024. The
7review audit shall be designed to ascertain whether any senior
8homestead exemptions have been granted erroneously. If it is
9determined that a senior homestead exemption has been
10erroneously applied to a property, the chief county assessment
11officer shall make use of the appropriate provisions of
12Section 9-275 in relation to the property that received the
13erroneous homestead exemption.
14    (j) In counties with less than 3,000,000 inhabitants, the
15county board may by resolution provide that if a person has
16been granted a homestead exemption under this Section, the
17person qualifying need not reapply for the exemption. In
18counties in which the county board passes such a resolution,
19the chief county assessment official shall, prior to the
20submission of the final abstract for the first year of each
21reassessment cycle, as determined by Section 9-215, review all
22exemptions granted for the preceding reassessment cycle under
23this Section. The review shall be designed to ascertain
24whether any senior homestead exemptions have been granted
25erroneously.
26    In counties with less than 3,000,000 inhabitants, if the

 

 

10300HB4951sam002- 1091 -LRB103 38094 HLH 74177 a

1assessor or chief county assessment officer requires annual
2application for verification of eligibility for an exemption
3once granted under this Section, the application shall be
4mailed to the taxpayer.
5    (l) The assessor or chief county assessment officer shall
6notify each person who qualifies for an exemption under this
7Section that the person may also qualify for deferral of real
8estate taxes under the Senior Citizens Real Estate Tax
9Deferral Act. The notice shall set forth the qualifications
10needed for deferral of real estate taxes, the address and
11telephone number of county collector, and a statement that
12applications for deferral of real estate taxes may be obtained
13from the county collector.
14    (m) Notwithstanding Sections 6 and 8 of the State Mandates
15Act, no reimbursement by the State is required for the
16implementation of any mandate created by this Section.
17(Source: P.A. 101-453, eff. 8-23-19; 101-622, eff. 1-14-20;
18102-895, eff. 5-23-22.)
 
19
ARTICLE 140.

 
20    Section 140-5. The Property Tax Code is amended by
21changing Sections 10-40 and 10-50 as follows:
 
22    (35 ILCS 200/10-40)
23    Sec. 10-40. Historic Residence Assessment Freeze Law;

 

 

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1definitions. This Section and Sections 10-45 through 10-85 may
2be cited as the Historic Residence Assessment Freeze Law. As
3used in this Section and Sections 10-45 through 10-85:
4        (a) "Director" means the Director of Historic
5    Preservation.
6        (b) "Approved county or municipal landmark ordinance"
7    means a county or municipal ordinance approved by the
8    Director.
9        (c) "Historic building" means an owner-occupied single
10    family residence or an owner-occupied multi-family
11    residence and the tract, lot or parcel upon which it is
12    located, or a building or buildings owned and operated as
13    a cooperative, if:
14            (1) individually listed on the National Register
15        of Historic Places or the Illinois Register of
16        Historic Places;
17            (2) individually designated pursuant to an
18        approved county or municipal landmark ordinance; or
19            (3) within a district listed on the National
20        Register of Historic Places or designated pursuant to
21        an approved county or municipal landmark ordinance, if
22        the Director determines that the building is of
23        historic significance to the district in which it is
24        located.
25    Historic building does not mean an individual unit of a
26    cooperative.

 

 

10300HB4951sam002- 1093 -LRB103 38094 HLH 74177 a

1        (d) "Assessment officer" means the chief county
2    assessment officer.
3        (e) "Certificate of rehabilitation" means the
4    certificate issued by the Director upon the renovation,
5    restoration, preservation or rehabilitation of an historic
6    building under this Code.
7        (f) "Rehabilitation period" means the period of time
8    necessary to renovate, restore, preserve or rehabilitate
9    an historic building as determined by the Director.
10        (g) "Standards for rehabilitation" means the Secretary
11    of Interior's standards for rehabilitation as promulgated
12    by the U.S. Department of the Interior.
13        (h) "Fair cash value" means the fair cash value of the
14    historic building, as finally determined for that year by
15    the assessment officer, board of review, Property Tax
16    Appeal Board, or court on the basis of the assessment
17    officer's property record card, representing the value of
18    the property prior to the commencement of rehabilitation
19    without consideration of any reduction reflecting value
20    during the rehabilitation work. The changes made to this
21    Section by this amendatory Act of the 103rd General
22    Assembly are declarative of existing law and shall not be
23    construed as a new enactment.
24        (i) "Base year valuation" means the fair cash value of
25    the historic building for the year in which the
26    rehabilitation period begins but prior to the commencement

 

 

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1    of the rehabilitation and does not include any reduction
2    in value during the rehabilitation work.
3        (j) "Adjustment in value" means the difference for any
4    year between the then current fair cash value and the base
5    year valuation.
6        (k) "Eight-year valuation period" means the 8 years
7    from the date of the issuance of the certificate of
8    rehabilitation.
9        (l) "Adjustment valuation period" means the 4 years
10    following the 8 year valuation period.
11        (m) "Substantial rehabilitation" means interior or
12    exterior rehabilitation work that preserves the historic
13    building in a manner that significantly improves its
14    condition.
15        (n) "Approved local government" means a local
16    government that has been certified by the Director as:
17            (1) enforcing appropriate legislation for the
18        designation of historic buildings;
19            (2) having established an adequate and qualified
20        historic review commission;
21            (3) maintaining a system for the survey and
22        inventory of historic properties;
23            (4) providing for adequate public participation in
24        the local historic preservation program; and
25            (5) maintaining a system for reviewing
26        applications under this Section in accordance with

 

 

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1        rules and regulations promulgated by the Director.
2        (o) "Cooperative" means a building or buildings and
3    the tract, lot, or parcel on which the building or
4    buildings are located, if the building or buildings are
5    devoted to residential uses by the owners and fee title to
6    the land and building or buildings is owned by a
7    corporation or other legal entity in which the
8    shareholders or other co-owners each also have a long-term
9    proprietary lease or other long-term arrangement of
10    exclusive possession for a specific unit of occupancy
11    space located within the same building or buildings.
12        (p) "Owner", in the case of a cooperative, means the
13    Association.
14        (q) "Association", in the case of a cooperative, means
15    the entity responsible for the administration of a
16    cooperative, which entity may be incorporated or
17    unincorporated, profit or nonprofit.
18        (r) "Owner-occupied single family residence" means a
19    residence in which the title holder of record (i) holds
20    fee simple ownership and (ii) occupies the property as
21    his, her, or their principal residence.
22        (s) "Owner-occupied multi-family residence" means
23    residential property comprised of not more than 6 living
24    units in which the title holder of record (i) holds fee
25    simple ownership and (ii) occupies one unit as his, her,
26    or their principal residence. The remaining units may be

 

 

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1    leased.
2    The changes made to this Section by this amendatory Act of
3the 91st General Assembly are declarative of existing law and
4shall not be construed as a new enactment.
5(Source: P.A. 90-114, eff. 1-1-98; 91-806, eff. 1-1-01.)
 
6    (35 ILCS 200/10-50)
7    Sec. 10-50. Valuation after 8 year valuation period.
8    (a) For the 4 years after the expiration of the 8-year
9valuation period, the valuation for purposes of computing the
10assessed valuation shall not exceed the following be as
11follows:
12        For the first year, the base year valuation plus 25%
13    of the adjustment in value.
14        For the second year, the base year valuation plus 50%
15    of the adjustment in value.
16        For the third year, the base year valuation plus 75%
17    of the adjustment in value.
18        For the fourth year, the then current fair cash value.
19    (b) If the current fair cash value during the adjustment
20valuation period is less than the base year valuation with the
21applicable adjustment, the assessment shall be based on the
22current fair cash value. The changes made to this Section by
23this amendatory Act of the 103rd General Assembly are
24declarative of existing law and shall not be construed as a new
25enactment.

 

 

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1(Source: P.A. 82-1023; 88-455.)
 
2
ARTICLE 145.

 
3    Section 145-5. The Property Tax Code is amended by
4changing Section 15-40 as follows:
 
5    (35 ILCS 200/15-40)
6    Sec. 15-40. Religious purposes, orphanages, or school and
7religious purposes.
8    (a) Property used exclusively for:
9        (1) religious purposes, or
10        (2) school and religious purposes, or
11        (3) orphanages
12qualifies for exemption as long as it is not used with a view
13to profit.
14    (b) Property that is owned by
15        (1) churches or
16        (2) religious institutions or
17        (3) religious denominations
18and that is used in conjunction therewith as housing
19facilities provided for ministers (including bishops, district
20superintendents and similar church officials whose ministerial
21duties are not limited to a single congregation), their
22spouses, children and domestic workers, performing the duties
23of their vocation as ministers at such churches or religious

 

 

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1institutions or for such religious denominations, including
2the convents and monasteries where persons engaged in
3religious activities reside also qualifies for exemption.
4    A parsonage, convent or monastery or other housing
5facility shall be considered under this Section to be
6exclusively used for religious purposes when the persons who
7perform religious related activities shall, as a condition of
8their employment or association, reside in the facility.
9    (c) In Cook County, whenever any interest in a property
10exempt under this Section is transferred, notice of that
11transfer must be filed with the county clerk recorder. The
12chief county assessment officer shall prepare and make
13available a form notice for this purpose. Whenever a notice is
14filed, the county clerk recorder shall transmit a copy of that
15recorded notice to the chief county assessment officer within
1614 days after receipt.
17(Source: P.A. 92-333, eff. 8-10-01.)
 
18
ARTICLE 150.

 
19    Section 150-1. Short title. This Act may be cited as the
20Interchange Fee Prohibition Act. References in this Article to
21"this Act" mean this Article.
 
22    Section 150-5. Definitions. As used in this Act:
23    "Acquirer bank" means a member of a payment card network

 

 

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1that contracts with a merchant for the settlement of
2electronic payment transactions. An acquirer bank may contract
3directly with merchants or indirectly through a processor to
4process electronic payment transactions.
5    "Authorization" means the process through which a merchant
6requests approval for an electronic payment transaction from
7the issuer.
8    "Clearance" means the process of transmitting final
9transaction data from a merchant to an issuer for posting to
10the cardholder's account and the calculation of fees and
11charges, including interchange fees, that apply to the issuer
12and the merchant.
13    "Credit card" means a card, plate, coupon book, or other
14credit device existing for the purpose of obtaining money,
15property, labor, or services on credit.
16    "Debit card" means a card or other payment code or device
17issued or approved for use through a payment card network to
18debit an asset account, regardless of the purpose for which
19the account is established, whether authorization is based on
20a signature, a personal identification number, or other means.
21"Debit card" includes a general use prepaid card, as defined
22in 15 U.S.C. 16931-1. "Debit card" does not include paper
23checks.
24    "Electronic payment transaction" means a transaction in
25which a person uses a debit card, a credit card, or other
26payment code or device issued or approved through a payment

 

 

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1card network to debit a deposit account or use a line of
2credit, whether authorization is based on a signature, a
3personal identification number, or other means.
4    "Gratuity" means a voluntary monetary contribution to an
5employee from a guest, patron, or customer in connection with
6services rendered.
7    "Interchange fee" means a fee established, charged, or
8received by a payment card network for the purpose of
9compensating the issuer for its involvement in an electronic
10payment transaction.
11    "Issuer" means a person issuing a debit card or credit
12card or the issuer's agent.
13    "Merchant" means a person that collects and remits a tax.
14    "Payment card network" means an entity that:
15        (1) directly or through licensed members, processors,
16    or agents, provides the proprietary services,
17    infrastructure, and software to route information and data
18    for the purpose of conducting electronic payment
19    transaction authorization, clearance, and settlement; and
20        (2) a merchant uses to accept as a form of payment a
21    brand of debit card, credit card, or other device that may
22    be used to carry out electronic payment transactions.
23    "Person" means any individual, firm, public or private
24corporation, government, partnership, association, or any
25other organization or entity.
26    "Processor" means an entity that facilitates, services,

 

 

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1processes, or manages the debit or credit authorization,
2billing, transfer, payment procedures, or settlement with
3respect to any electronic payment transaction.
4    "Settlement" means the process of transmitting sales
5information to the issuing bank for collection and
6reimbursement of funds to the merchant and calculating and
7reporting the net transaction amount to the issuer and
8merchant for an electronic payment transaction that is
9cleared.
10    "Tax" means any use and occupation tax or excise tax
11imposed by the State or a unit of local government in the
12State.
13    "Tax documentation" means documentation sufficient for the
14payment card network to determine the total amount of the
15electronic payment transaction and the tax or gratuity amount
16of the transaction. Tax documentation may be related to a
17single electronic payment transaction or multiple electronic
18payment transactions aggregated over a period of time.
19Examples of tax documentation include, but are not limited to,
20invoices, receipts, journals, ledgers, and tax returns filed
21with the Department of Revenue or local taxing authorities.
 
22    Section 150-10. Interchange fees on taxes prohibited.
23    (a) An issuer, a payment card network, an acquirer bank,
24or a processor may not receive or charge a merchant any
25interchange fee on the tax amount or gratuity of an electronic

 

 

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1payment transaction if the merchant informs the acquirer bank
2or its designee of the tax or gratuity amount as part of the
3authorization or settlement process for the electronic payment
4transaction. The merchant must transmit the tax or gratuity
5amount data as part of the authorization or settlement process
6to avoid being charged interchange fees on the tax or gratuity
7amount of an electronic payment transaction.
8    (b) A merchant that does not transmit the tax or gratuity
9amount data in accordance with this Section may submit tax
10documentation for the electronic payment transaction to the
11acquirer bank or its designee no later than 180 days after the
12date of the electronic payment transaction, and, within 30
13days after the merchant submits the necessary tax
14documentation, the issuer must credit to the merchant the
15amount of interchange fees charged on the tax or gratuity
16amount of the electronic payment transaction.
17    (c) This Section does not create liability for a payment
18card network regarding the accuracy of the tax or gratuity
19data reported by the merchant.
20    (d) It shall be unlawful for an issuer, a payment card
21network, an acquirer bank, or a processor to alter or
22manipulate the computation and imposition of interchange fees
23by increasing the rate or amount of the fees applicable to or
24imposed upon the portion of a credit or debit card transaction
25not attributable to taxes or other fees charged to the
26retailer to circumvent the effect of this Section.
 

 

 

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1    Section 150-15. Penalties.
2    (a) An issuer, a payment card network, an acquirer bank, a
3processor, or other designated entity that has received the
4tax or gratuity amount data and violates Section 150-10 is
5subject to a civil penalty of $1,000 per electronic payment
6transaction, and the issuer must refund the merchant the
7interchange fee calculated on the tax or gratuity amount
8relative to the electronic payment transaction.
9    (b) An entity, other than the merchant, involved in
10facilitating or processing an electronic payment transaction,
11including, but not limited to, an issuer, a payment card
12network, an acquirer bank, a processor, or other designated
13entity, may not distribute, exchange, transfer, disseminate,
14or use the electronic payment transaction data except to
15facilitate or process the electronic payment transaction or as
16required by law. A violation of this subsection constitutes a
17violation of the Consumer Fraud and Deceptive Business
18Practices Act.
 
19    Section 150-95. Severability. The provisions of this Act
20are severable under Section 1.31 of the Statute on Statutes.
 
21
ARTICLE 155.

 
22    Section 155-5. The Property Tax Code is amended by

 

 

10300HB4951sam002- 1104 -LRB103 38094 HLH 74177 a

1changing Sections 9-45 and 11-15 as follows:
 
2    (35 ILCS 200/9-45)
3    Sec. 9-45. Property index number system. The county clerk
4in counties of 3,000,000 or more inhabitants and, subject to
5the approval of the county board, the chief county assessment
6officer or recorder, in counties of less than 3,000,000
7inhabitants, may establish a property index number system
8under which property may be listed for purposes of assessment,
9collection of taxes or automation of the office of the
10recorder. The system may be adopted in addition to, or instead
11of, the method of listing by legal description as provided in
12Section 9-40. The system shall describe property by township,
13section, block, and parcel or lot, and may cross-reference the
14street or post office address, if any, and street code number,
15if any. The county clerk, county treasurer, chief county
16assessment officer or recorder may establish and maintain
17cross indexes of numbers assigned under the system with the
18complete legal description of the properties to which the
19numbers relate. Index numbers shall be assigned by the county
20clerk in counties of 3,000,000 or more inhabitants, and, at
21the direction of the county board in counties with less than
223,000,000 inhabitants, shall be assigned by the chief county
23assessment officer or recorder. Tax maps of the county clerk,
24county treasurer or chief county assessment officer shall
25carry those numbers. The indexes shall be open to public

 

 

10300HB4951sam002- 1105 -LRB103 38094 HLH 74177 a

1inspection and be made available to the public. Any property
2index number system established prior to the effective date of
3this Code shall remain valid. However, in counties with less
4than 3,000,000 inhabitants, the system may be transferred to
5another authority upon the approval of the county board.
6    Any real property used for a power generating or
7automotive manufacturing facility located within a county of
8less than 1,000,000 inhabitants, as to which litigation with
9respect to its assessed valuation is pending or was pending as
10of January 1, 1993, may be the subject of a real property tax
11assessment settlement agreement among the taxpayer and taxing
12districts in which it is situated. In addition, any real
13property that is located in a county with fewer than 1,000,000
14inhabitants and (i) is used for natural gas extraction and
15fractionation or olefin and polymer manufacturing or (ii) is
16used for a petroleum refinery and (ii) located within a county
17of less than 1,000,000 inhabitants may be the subject of a real
18property tax assessment settlement agreement among the
19taxpayer and taxing districts in which the property is
20situated if litigation is or was pending as to its assessed
21valuation as of January 1, 2003 or thereafter. Other
22appropriate authorities, which may include county and State
23boards or officials, may also be parties to such agreements.
24Such agreements may include the assessment of the facility or
25property for any years in dispute as well as for up to 10 years
26in the future. Such agreements may provide for the settlement

 

 

10300HB4951sam002- 1106 -LRB103 38094 HLH 74177 a

1of issues relating to the assessed value of the facility and
2may provide for related payments, refunds, claims, credits
3against taxes and liabilities in respect to past and future
4taxes of taxing districts, including any fund created under
5Section 20-35 of this Act, all implementing the settlement
6agreement. Any such agreement may provide that parties thereto
7agree not to challenge assessments as provided in the
8agreement. An agreement entered into on or after January 1,
91993 may provide for the classification of property that is
10the subject of the agreement as real or personal during the
11term of the agreement and thereafter. It may also provide that
12taxing districts agree to reimburse the taxpayer for amounts
13paid by the taxpayer in respect to taxes for the real property
14which is the subject of the agreement to the extent levied by
15those respective districts, over and above amounts which would
16be due if the facility were to be assessed as provided in the
17agreement. Such reimbursement may be provided in the agreement
18to be made by credit against taxes of the taxpayer. No credits
19shall be applied against taxes levied with respect to debt
20service or lease payments of a taxing district. No referendum
21approval or appropriation shall be required for such an
22agreement or such credits and any such obligation shall not
23constitute indebtedness of the taxing district for purposes of
24any statutory limitation. The county collector shall treat
25credited amounts as if they had been received by the collector
26as taxes paid by the taxpayer and as if remitted to the

 

 

10300HB4951sam002- 1107 -LRB103 38094 HLH 74177 a

1district. A county treasurer who is a party to such an
2agreement may agree to hold amounts paid in escrow as provided
3in the agreement for possible use for paying taxes until
4conditions of the agreement are met and then to apply these
5amounts as provided in the agreement. No such settlement
6agreement shall be effective unless it shall have been
7approved by the court in which such litigation is pending. Any
8such agreement which has been entered into prior to adoption
9of this amendatory Act of 1988 and which is contingent upon
10enactment of authorizing legislation shall be binding and
11enforceable.
12(Source: P.A. 96-609, eff. 8-24-09.)
 
13    (35 ILCS 200/11-15)
14    Sec. 11-15. Method of valuation for pollution control
15facilities. To determine 33 1/3% of the fair cash value of any
16certified pollution control facility facilities in assessing
17those facilities, the Department shall determine take into
18consideration the actual or probable net earnings attributable
19to the facilities in question, capitalized on the basis of
20their productive earning value to their owner; the probable
21net value that which could be realized by its their owner if
22the facility facilities were removed and sold at a fair,
23voluntary sale, giving due account to the expense of removal
24and condition of the particular facility facilities in
25question; and other information as the Department may consider

 

 

10300HB4951sam002- 1108 -LRB103 38094 HLH 74177 a

1as bearing on the fair cash value of the facilities to their
2owner, consistent with the principles set forth in this
3Section. For the purposes of this Code, earnings shall be
4attributed to a pollution control facility only to the extent
5that its operation results in the production of a commercially
6saleable by-product or increases the production or reduces the
7production costs of the products or services otherwise sold by
8the owner of such facility. The assessed value of the facility
9shall be 33/1/3% of the fair cash value of the facility.
10(Source: P.A. 83-121; 88-455.)
 
11
ARTICLE 160.

 
12    Section 160-5. The Illinois Gambling Act is amended by
13changing Section 13 as follows:
 
14    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
15    Sec. 13. Wagering tax; rate; distribution.
16    (a) Until January 1, 1998, a tax is imposed on the adjusted
17gross receipts received from gambling games authorized under
18this Act at the rate of 20%.
19    (a-1) From January 1, 1998 until July 1, 2002, a privilege
20tax is imposed on persons engaged in the business of
21conducting riverboat gambling operations, based on the
22adjusted gross receipts received by a licensed owner from
23gambling games authorized under this Act at the following

 

 

10300HB4951sam002- 1109 -LRB103 38094 HLH 74177 a

1rates:
2        15% of annual adjusted gross receipts up to and
3    including $25,000,000;
4        20% of annual adjusted gross receipts in excess of
5    $25,000,000 but not exceeding $50,000,000;
6        25% of annual adjusted gross receipts in excess of
7    $50,000,000 but not exceeding $75,000,000;
8        30% of annual adjusted gross receipts in excess of
9    $75,000,000 but not exceeding $100,000,000;
10        35% of annual adjusted gross receipts in excess of
11    $100,000,000.
12    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
13is imposed on persons engaged in the business of conducting
14riverboat gambling operations, other than licensed managers
15conducting riverboat gambling operations on behalf of the
16State, based on the adjusted gross receipts received by a
17licensed owner from gambling games authorized under this Act
18at the following rates:
19        15% of annual adjusted gross receipts up to and
20    including $25,000,000;
21        22.5% of annual adjusted gross receipts in excess of
22    $25,000,000 but not exceeding $50,000,000;
23        27.5% of annual adjusted gross receipts in excess of
24    $50,000,000 but not exceeding $75,000,000;
25        32.5% of annual adjusted gross receipts in excess of
26    $75,000,000 but not exceeding $100,000,000;

 

 

10300HB4951sam002- 1110 -LRB103 38094 HLH 74177 a

1        37.5% of annual adjusted gross receipts in excess of
2    $100,000,000 but not exceeding $150,000,000;
3        45% of annual adjusted gross receipts in excess of
4    $150,000,000 but not exceeding $200,000,000;
5        50% of annual adjusted gross receipts in excess of
6    $200,000,000.
7    (a-3) Beginning July 1, 2003, a privilege tax is imposed
8on persons engaged in the business of conducting riverboat
9gambling operations, other than licensed managers conducting
10riverboat gambling operations on behalf of the State, based on
11the adjusted gross receipts received by a licensed owner from
12gambling games authorized under this Act at the following
13rates:
14        15% of annual adjusted gross receipts up to and
15    including $25,000,000;
16        27.5% of annual adjusted gross receipts in excess of
17    $25,000,000 but not exceeding $37,500,000;
18        32.5% of annual adjusted gross receipts in excess of
19    $37,500,000 but not exceeding $50,000,000;
20        37.5% of annual adjusted gross receipts in excess of
21    $50,000,000 but not exceeding $75,000,000;
22        45% of annual adjusted gross receipts in excess of
23    $75,000,000 but not exceeding $100,000,000;
24        50% of annual adjusted gross receipts in excess of
25    $100,000,000 but not exceeding $250,000,000;
26        70% of annual adjusted gross receipts in excess of

 

 

10300HB4951sam002- 1111 -LRB103 38094 HLH 74177 a

1    $250,000,000.
2    An amount equal to the amount of wagering taxes collected
3under this subsection (a-3) that are in addition to the amount
4of wagering taxes that would have been collected if the
5wagering tax rates under subsection (a-2) were in effect shall
6be paid into the Common School Fund.
7    The privilege tax imposed under this subsection (a-3)
8shall no longer be imposed beginning on the earlier of (i) July
91, 2005; (ii) the first date after June 20, 2003 that riverboat
10gambling operations are conducted pursuant to a dormant
11license; or (iii) the first day that riverboat gambling
12operations are conducted under the authority of an owners
13license that is in addition to the 10 owners licenses
14initially authorized under this Act. For the purposes of this
15subsection (a-3), the term "dormant license" means an owners
16license that is authorized by this Act under which no
17riverboat gambling operations are being conducted on June 20,
182003.
19    (a-4) Beginning on the first day on which the tax imposed
20under subsection (a-3) is no longer imposed and ending upon
21the imposition of the privilege tax under subsection (a-5) of
22this Section, a privilege tax is imposed on persons engaged in
23the business of conducting gambling operations, other than
24licensed managers conducting riverboat gambling operations on
25behalf of the State, based on the adjusted gross receipts
26received by a licensed owner from gambling games authorized

 

 

10300HB4951sam002- 1112 -LRB103 38094 HLH 74177 a

1under this Act at the following rates:
2        15% of annual adjusted gross receipts up to and
3    including $25,000,000;
4        22.5% of annual adjusted gross receipts in excess of
5    $25,000,000 but not exceeding $50,000,000;
6        27.5% of annual adjusted gross receipts in excess of
7    $50,000,000 but not exceeding $75,000,000;
8        32.5% of annual adjusted gross receipts in excess of
9    $75,000,000 but not exceeding $100,000,000;
10        37.5% of annual adjusted gross receipts in excess of
11    $100,000,000 but not exceeding $150,000,000;
12        45% of annual adjusted gross receipts in excess of
13    $150,000,000 but not exceeding $200,000,000;
14        50% of annual adjusted gross receipts in excess of
15    $200,000,000.
16    For the imposition of the privilege tax in this subsection
17(a-4), amounts paid pursuant to item (1) of subsection (b) of
18Section 56 of the Illinois Horse Racing Act of 1975 shall not
19be included in the determination of adjusted gross receipts.
20    (a-5)(1) Beginning on July 1, 2020, a privilege tax is
21imposed on persons engaged in the business of conducting
22gambling operations, other than the owners licensee under
23paragraph (1) of subsection (e-5) of Section 7 and licensed
24managers conducting riverboat gambling operations on behalf of
25the State, based on the adjusted gross receipts received by
26such licensee from the gambling games authorized under this

 

 

10300HB4951sam002- 1113 -LRB103 38094 HLH 74177 a

1Act. The privilege tax for all gambling games other than table
2games, including, but not limited to, slot machines, video
3game of chance gambling, and electronic gambling games shall
4be at the following rates:
5        15% of annual adjusted gross receipts up to and
6    including $25,000,000;
7        22.5% of annual adjusted gross receipts in excess of
8    $25,000,000 but not exceeding $50,000,000;
9        27.5% of annual adjusted gross receipts in excess of
10    $50,000,000 but not exceeding $75,000,000;
11        32.5% of annual adjusted gross receipts in excess of
12    $75,000,000 but not exceeding $100,000,000;
13        37.5% of annual adjusted gross receipts in excess of
14    $100,000,000 but not exceeding $150,000,000;
15        45% of annual adjusted gross receipts in excess of
16    $150,000,000 but not exceeding $200,000,000;
17        50% of annual adjusted gross receipts in excess of
18    $200,000,000.
19    The privilege tax for table games shall be at the
20following rates:
21        15% of annual adjusted gross receipts up to and
22    including $25,000,000;
23        20% of annual adjusted gross receipts in excess of
24    $25,000,000.
25    For the imposition of the privilege tax in this subsection
26(a-5), amounts paid pursuant to item (1) of subsection (b) of

 

 

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1Section 56 of the Illinois Horse Racing Act of 1975 shall not
2be included in the determination of adjusted gross receipts.
3    (2) Beginning on the first day that an owners licensee
4under paragraph (1) of subsection (e-5) of Section 7 conducts
5gambling operations, either in a temporary facility or a
6permanent facility, a privilege tax is imposed on persons
7engaged in the business of conducting gambling operations
8under paragraph (1) of subsection (e-5) of Section 7, other
9than licensed managers conducting riverboat gambling
10operations on behalf of the State, based on the adjusted gross
11receipts received by such licensee from the gambling games
12authorized under this Act. The privilege tax for all gambling
13games other than table games, including, but not limited to,
14slot machines, video game of chance gambling, and electronic
15gambling games shall be at the following rates:
16        12% of annual adjusted gross receipts up to and
17    including $25,000,000 to the State and 10.5% of annual
18    adjusted gross receipts up to and including $25,000,000 to
19    the City of Chicago;
20        16% of annual adjusted gross receipts in excess of
21    $25,000,000 but not exceeding $50,000,000 to the State and
22    14% of annual adjusted gross receipts in excess of
23    $25,000,000 but not exceeding $50,000,000 to the City of
24    Chicago;
25        20.1% of annual adjusted gross receipts in excess of
26    $50,000,000 but not exceeding $75,000,000 to the State and

 

 

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1    17.4% of annual adjusted gross receipts in excess of
2    $50,000,000 but not exceeding $75,000,000 to the City of
3    Chicago;
4        21.4% of annual adjusted gross receipts in excess of
5    $75,000,000 but not exceeding $100,000,000 to the State
6    and 18.6% of annual adjusted gross receipts in excess of
7    $75,000,000 but not exceeding $100,000,000 to the City of
8    Chicago;
9        22.7% of annual adjusted gross receipts in excess of
10    $100,000,000 but not exceeding $150,000,000 to the State
11    and 19.8% of annual adjusted gross receipts in excess of
12    $100,000,000 but not exceeding $150,000,000 to the City of
13    Chicago;
14        24.1% of annual adjusted gross receipts in excess of
15    $150,000,000 but not exceeding $225,000,000 to the State
16    and 20.9% of annual adjusted gross receipts in excess of
17    $150,000,000 but not exceeding $225,000,000 to the City of
18    Chicago;
19        26.8% of annual adjusted gross receipts in excess of
20    $225,000,000 but not exceeding $1,000,000,000 to the State
21    and 23.2% of annual adjusted gross receipts in excess of
22    $225,000,000 but not exceeding $1,000,000,000 to the City
23    of Chicago;
24        40% of annual adjusted gross receipts in excess of
25    $1,000,000,000 to the State and 34.7% of annual gross
26    receipts in excess of $1,000,000,000 to the City of

 

 

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1    Chicago.
2    The privilege tax for table games shall be at the
3following rates:
4        8.1% of annual adjusted gross receipts up to and
5    including $25,000,000 to the State and 6.9% of annual
6    adjusted gross receipts up to and including $25,000,000 to
7    the City of Chicago;
8        10.7% of annual adjusted gross receipts in excess of
9    $25,000,000 but not exceeding $75,000,000 to the State and
10    9.3% of annual adjusted gross receipts in excess of
11    $25,000,000 but not exceeding $75,000,000 to the City of
12    Chicago;
13        11.2% of annual adjusted gross receipts in excess of
14    $75,000,000 but not exceeding $175,000,000 to the State
15    and 9.8% of annual adjusted gross receipts in excess of
16    $75,000,000 but not exceeding $175,000,000 to the City of
17    Chicago;
18        13.5% of annual adjusted gross receipts in excess of
19    $175,000,000 but not exceeding $225,000,000 to the State
20    and 11.5% of annual adjusted gross receipts in excess of
21    $175,000,000 but not exceeding $225,000,000 to the City of
22    Chicago;
23        15.1% of annual adjusted gross receipts in excess of
24    $225,000,000 but not exceeding $275,000,000 to the State
25    and 12.9% of annual adjusted gross receipts in excess of
26    $225,000,000 but not exceeding $275,000,000 to the City of

 

 

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1    Chicago;
2        16.2% of annual adjusted gross receipts in excess of
3    $275,000,000 but not exceeding $375,000,000 to the State
4    and 13.8% of annual adjusted gross receipts in excess of
5    $275,000,000 but not exceeding $375,000,000 to the City of
6    Chicago;
7        18.9% of annual adjusted gross receipts in excess of
8    $375,000,000 to the State and 16.1% of annual gross
9    receipts in excess of $375,000,000 to the City of Chicago.
10    For the imposition of the privilege tax in this subsection
11(a-5), amounts paid pursuant to item (1) of subsection (b) of
12Section 56 of the Illinois Horse Racing Act of 1975 shall not
13be included in the determination of adjusted gross receipts.
14    (3) Notwithstanding the provisions of this subsection
15(a-5), for the first 10 years that the privilege tax is imposed
16under this subsection (a-5) or until the year preceding the
17calendar year in which paragraph (4) becomes operative,
18whichever occurs first, the privilege tax shall be imposed on
19the modified annual adjusted gross receipts of a riverboat or
20casino conducting gambling operations in the City of East St.
21Louis, unless:
22        (1) the riverboat or casino fails to employ at least
23    450 people, except no minimum employment shall be required
24    during 2020 and 2021 or during periods that the riverboat
25    or casino is closed on orders of State officials for
26    public health emergencies or other emergencies not caused

 

 

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1    by the riverboat or casino;
2        (2) the riverboat or casino fails to maintain
3    operations in a manner consistent with this Act or is not a
4    viable riverboat or casino subject to the approval of the
5    Board; or
6        (3) the owners licensee is not an entity in which
7    employees participate in an employee stock ownership plan
8    or in which the owners licensee sponsors a 401(k)
9    retirement plan and makes a matching employer contribution
10    equal to at least one-quarter of the first 12% or one-half
11    of the first 6% of each participating employee's
12    contribution, not to exceed any limitations under federal
13    laws and regulations.
14    (4) Notwithstanding the provisions of this subsection
15(a-5), for 10 calendar years beginning in the year that
16gambling operations commence either in a temporary or
17permanent facility at an organization gaming facility located
18in the City of Collinsville if the facility commences
19operations within 3 years of the effective date of the changes
20made to this Section by this amendatory Act of the 103rd
21General Assembly, the privilege tax imposed under this
22subsection (a-5) on a riverboat or casino conducting gambling
23operations in the City of East St. Louis shall be reduced, if
24applicable, by an amount equal to the difference in adjusted
25gross receipts for the 2022 calendar year less the current
26year's adjusted gross receipts, unless:

 

 

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1        (A) the riverboat or casino fails to employ at least
2    350 people, except that no minimum employment shall be
3    required during periods that the riverboat or casino is
4    closed on orders of State officials for public health
5    emergencies or other emergencies not caused by the
6    riverboat or casino;
7        (B) the riverboat or casino fails to maintain
8    operations in a manner consistent with this Act or is not a
9    viable riverboat or casino subject to the approval of the
10    Board; or
11        (C) the riverboat or casino fails to submit audited
12    financial statements to the Board prepared by an
13    accounting firm that has been preapproved by the Board and
14    such statements were prepared in accordance with the
15    provisions of the Financial Accounting Standards Board
16    Accounting Standards Codification under nongovernmental
17    accounting principles generally accepted in the United
18    States.
19    As used in this subsection (a-5), "modified annual
20adjusted gross receipts" means:
21        (A) for calendar year 2020, the annual adjusted gross
22    receipts for the current year minus the difference between
23    an amount equal to the average annual adjusted gross
24    receipts from a riverboat or casino conducting gambling
25    operations in the City of East St. Louis for 2014, 2015,
26    2016, 2017, and 2018 and the annual adjusted gross

 

 

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1    receipts for 2018;
2        (B) for calendar year 2021, the annual adjusted gross
3    receipts for the current year minus the difference between
4    an amount equal to the average annual adjusted gross
5    receipts from a riverboat or casino conducting gambling
6    operations in the City of East St. Louis for 2014, 2015,
7    2016, 2017, and 2018 and the annual adjusted gross
8    receipts for 2019; and
9        (C) for calendar years 2022 through 2029, the annual
10    adjusted gross receipts for the current year minus the
11    difference between an amount equal to the average annual
12    adjusted gross receipts from a riverboat or casino
13    conducting gambling operations in the City of East St.
14    Louis for 3 years preceding the current year and the
15    annual adjusted gross receipts for the immediately
16    preceding year.
17    (a-6) From June 28, 2019 (the effective date of Public Act
18101-31) until June 30, 2023, an owners licensee that conducted
19gambling operations prior to January 1, 2011 shall receive a
20dollar-for-dollar credit against the tax imposed under this
21Section for any renovation or construction costs paid by the
22owners licensee, but in no event shall the credit exceed
23$2,000,000.
24    Additionally, from June 28, 2019 (the effective date of
25Public Act 101-31) until December 31, 2024, an owners licensee
26that (i) is located within 15 miles of the Missouri border, and

 

 

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1(ii) has at least 3 riverboats, casinos, or their equivalent
2within a 45-mile radius, may be authorized to relocate to a new
3location with the approval of both the unit of local
4government designated as the home dock and the Board, so long
5as the new location is within the same unit of local government
6and no more than 3 miles away from its original location. Such
7owners licensee shall receive a credit against the tax imposed
8under this Section equal to 8% of the total project costs, as
9approved by the Board, for any renovation or construction
10costs paid by the owners licensee for the construction of the
11new facility, provided that the new facility is operational by
12July 1, 2024. In determining whether or not to approve a
13relocation, the Board must consider the extent to which the
14relocation will diminish the gaming revenues received by other
15Illinois gaming facilities.
16    (a-7) Beginning in the initial adjustment year and through
17the final adjustment year, if the total obligation imposed
18pursuant to either subsection (a-5) or (a-6) will result in an
19owners licensee receiving less after-tax adjusted gross
20receipts than it received in calendar year 2018, then the
21total amount of privilege taxes that the owners licensee is
22required to pay for that calendar year shall be reduced to the
23extent necessary so that the after-tax adjusted gross receipts
24in that calendar year equals the after-tax adjusted gross
25receipts in calendar year 2018, but the privilege tax
26reduction shall not exceed the annual adjustment cap. If

 

 

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1pursuant to this subsection (a-7), the total obligation
2imposed pursuant to either subsection (a-5) or (a-6) shall be
3reduced, then the owners licensee shall not receive a refund
4from the State at the end of the subject calendar year but
5instead shall be able to apply that amount as a credit against
6any payments it owes to the State in the following calendar
7year to satisfy its total obligation under either subsection
8(a-5) or (a-6). The credit for the final adjustment year shall
9occur in the calendar year following the final adjustment
10year.
11    If an owners licensee that conducted gambling operations
12prior to January 1, 2019 expands its riverboat or casino,
13including, but not limited to, with respect to its gaming
14floor, additional non-gaming amenities such as restaurants,
15bars, and hotels and other additional facilities, and incurs
16construction and other costs related to such expansion from
17June 28, 2019 (the effective date of Public Act 101-31) until
18June 28, 2024 (the 5th anniversary of the effective date of
19Public Act 101-31), then for each $15,000,000 spent for any
20such construction or other costs related to expansion paid by
21the owners licensee, the final adjustment year shall be
22extended by one year and the annual adjustment cap shall
23increase by 0.2% of adjusted gross receipts during each
24calendar year until and including the final adjustment year.
25No further modifications to the final adjustment year or
26annual adjustment cap shall be made after $75,000,000 is

 

 

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1incurred in construction or other costs related to expansion
2so that the final adjustment year shall not extend beyond the
39th calendar year after the initial adjustment year, not
4including the initial adjustment year, and the annual
5adjustment cap shall not exceed 4% of adjusted gross receipts
6in a particular calendar year. Construction and other costs
7related to expansion shall include all project related costs,
8including, but not limited to, all hard and soft costs,
9financing costs, on or off-site ground, road or utility work,
10cost of gaming equipment and all other personal property,
11initial fees assessed for each incremental gaming position,
12and the cost of incremental land acquired for such expansion.
13Soft costs shall include, but not be limited to, legal fees,
14architect, engineering and design costs, other consultant
15costs, insurance cost, permitting costs, and pre-opening costs
16related to the expansion, including, but not limited to, any
17of the following: marketing, real estate taxes, personnel,
18training, travel and out-of-pocket expenses, supply,
19inventory, and other costs, and any other project related soft
20costs.
21    To be eligible for the tax credits in subsection (a-6),
22all construction contracts shall include a requirement that
23the contractor enter into a project labor agreement with the
24building and construction trades council with geographic
25jurisdiction of the location of the proposed gaming facility.
26    Notwithstanding any other provision of this subsection

 

 

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1(a-7), this subsection (a-7) does not apply to an owners
2licensee unless such owners licensee spends at least
3$15,000,000 on construction and other costs related to its
4expansion, excluding the initial fees assessed for each
5incremental gaming position.
6    This subsection (a-7) does not apply to owners licensees
7authorized pursuant to subsection (e-5) of Section 7 of this
8Act.
9    For purposes of this subsection (a-7):
10    "Building and construction trades council" means any
11organization representing multiple construction entities that
12are monitoring or attentive to compliance with public or
13workers' safety laws, wage and hour requirements, or other
14statutory requirements or that are making or maintaining
15collective bargaining agreements.
16    "Initial adjustment year" means the year commencing on
17January 1 of the calendar year immediately following the
18earlier of the following:
19        (1) the commencement of gambling operations, either in
20    a temporary or permanent facility, with respect to the
21    owners license authorized under paragraph (1) of
22    subsection (e-5) of Section 7 of this Act; or
23        (2) June 28, 2021 (24 months after the effective date
24    of Public Act 101-31);
25provided the initial adjustment year shall not commence
26earlier than June 28, 2020 (12 months after the effective date

 

 

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1of Public Act 101-31).
2    "Final adjustment year" means the 2nd calendar year after
3the initial adjustment year, not including the initial
4adjustment year, and as may be extended further as described
5in this subsection (a-7).
6    "Annual adjustment cap" means 3% of adjusted gross
7receipts in a particular calendar year, and as may be
8increased further as otherwise described in this subsection
9(a-7).
10    (a-8) Riverboat gambling operations conducted by a
11licensed manager on behalf of the State are not subject to the
12tax imposed under this Section.
13    (a-9) Beginning on January 1, 2020, the calculation of
14gross receipts or adjusted gross receipts, for the purposes of
15this Section, for a riverboat, a casino, or an organization
16gaming facility shall not include the dollar amount of
17non-cashable vouchers, coupons, and electronic promotions
18redeemed by wagerers upon the riverboat, in the casino, or in
19the organization gaming facility up to and including an amount
20not to exceed 20% of a riverboat's, a casino's, or an
21organization gaming facility's adjusted gross receipts.
22    The Illinois Gaming Board shall submit to the General
23Assembly a comprehensive report no later than March 31, 2023
24detailing, at a minimum, the effect of removing non-cashable
25vouchers, coupons, and electronic promotions from this
26calculation on net gaming revenues to the State in calendar

 

 

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1years 2020 through 2022, the increase or reduction in wagerers
2as a result of removing non-cashable vouchers, coupons, and
3electronic promotions from this calculation, the effect of the
4tax rates in subsection (a-5) on net gaming revenues to this
5State, and proposed modifications to the calculation.
6    (a-10) The taxes imposed by this Section shall be paid by
7the licensed owner or the organization gaming licensee to the
8Board not later than 5:00 o'clock p.m. of the day after the day
9when the wagers were made.
10    (a-15) If the privilege tax imposed under subsection (a-3)
11is no longer imposed pursuant to item (i) of the last paragraph
12of subsection (a-3), then by June 15 of each year, each owners
13licensee, other than an owners licensee that admitted
141,000,000 persons or fewer in calendar year 2004, must, in
15addition to the payment of all amounts otherwise due under
16this Section, pay to the Board a reconciliation payment in the
17amount, if any, by which the licensed owner's base amount
18exceeds the amount of net privilege tax paid by the licensed
19owner to the Board in the then current State fiscal year. A
20licensed owner's net privilege tax obligation due for the
21balance of the State fiscal year shall be reduced up to the
22total of the amount paid by the licensed owner in its June 15
23reconciliation payment. The obligation imposed by this
24subsection (a-15) is binding on any person, firm, corporation,
25or other entity that acquires an ownership interest in any
26such owners license. The obligation imposed under this

 

 

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1subsection (a-15) terminates on the earliest of: (i) July 1,
22007, (ii) the first day after August 23, 2005 (the effective
3date of Public Act 94-673) that riverboat gambling operations
4are conducted pursuant to a dormant license, (iii) the first
5day that riverboat gambling operations are conducted under the
6authority of an owners license that is in addition to the 10
7owners licenses initially authorized under this Act, or (iv)
8the first day that a licensee under the Illinois Horse Racing
9Act of 1975 conducts gaming operations with slot machines or
10other electronic gaming devices. The Board must reduce the
11obligation imposed under this subsection (a-15) by an amount
12the Board deems reasonable for any of the following reasons:
13(A) an act or acts of God, (B) an act of bioterrorism or
14terrorism or a bioterrorism or terrorism threat that was
15investigated by a law enforcement agency, or (C) a condition
16beyond the control of the owners licensee that does not result
17from any act or omission by the owners licensee or any of its
18agents and that poses a hazardous threat to the health and
19safety of patrons. If an owners licensee pays an amount in
20excess of its liability under this Section, the Board shall
21apply the overpayment to future payments required under this
22Section.
23    For purposes of this subsection (a-15):
24    "Act of God" means an incident caused by the operation of
25an extraordinary force that cannot be foreseen, that cannot be
26avoided by the exercise of due care, and for which no person

 

 

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1can be held liable.
2    "Base amount" means the following:
3        For a riverboat in Alton, $31,000,000.
4        For a riverboat in East Peoria, $43,000,000.
5        For the Empress riverboat in Joliet, $86,000,000.
6        For a riverboat in Metropolis, $45,000,000.
7        For the Harrah's riverboat in Joliet, $114,000,000.
8        For a riverboat in Aurora, $86,000,000.
9        For a riverboat in East St. Louis, $48,500,000.
10        For a riverboat in Elgin, $198,000,000.
11    "Dormant license" has the meaning ascribed to it in
12subsection (a-3).
13    "Net privilege tax" means all privilege taxes paid by a
14licensed owner to the Board under this Section, less all
15payments made from the State Gaming Fund pursuant to
16subsection (b) of this Section.
17    The changes made to this subsection (a-15) by Public Act
1894-839 are intended to restate and clarify the intent of
19Public Act 94-673 with respect to the amount of the payments
20required to be made under this subsection by an owners
21licensee to the Board.
22    (b) From the tax revenue from riverboat or casino gambling
23deposited in the State Gaming Fund under this Section, an
24amount equal to 5% of adjusted gross receipts generated by a
25riverboat or a casino, other than a riverboat or casino
26designated in paragraph (1), (3), or (4) of subsection (e-5)

 

 

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1of Section 7, shall be paid monthly, subject to appropriation
2by the General Assembly, to the unit of local government in
3which the casino is located or that is designated as the home
4dock of the riverboat. Notwithstanding anything to the
5contrary, beginning on the first day that an owners licensee
6under paragraph (1), (2), (3), (4), (5), or (6) of subsection
7(e-5) of Section 7 conducts gambling operations, either in a
8temporary facility or a permanent facility, and for 2 years
9thereafter, a unit of local government designated as the home
10dock of a riverboat whose license was issued before January 1,
112019, other than a riverboat conducting gambling operations in
12the City of East St. Louis, shall not receive less under this
13subsection (b) than the amount the unit of local government
14received under this subsection (b) in calendar year 2018.
15Notwithstanding anything to the contrary and because the City
16of East St. Louis is a financially distressed city, beginning
17on the first day that an owners licensee under paragraph (1),
18(2), (3), (4), (5), or (6) of subsection (e-5) of Section 7
19conducts gambling operations, either in a temporary facility
20or a permanent facility, and for 10 years thereafter, a unit of
21local government designated as the home dock of a riverboat
22conducting gambling operations in the City of East St. Louis
23shall not receive less under this subsection (b) than the
24amount the unit of local government received under this
25subsection (b) in calendar year 2018.
26    From the tax revenue deposited in the State Gaming Fund

 

 

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1pursuant to riverboat or casino gambling operations conducted
2by a licensed manager on behalf of the State, an amount equal
3to 5% of adjusted gross receipts generated pursuant to those
4riverboat or casino gambling operations shall be paid monthly,
5subject to appropriation by the General Assembly, to the unit
6of local government that is designated as the home dock of the
7riverboat upon which those riverboat gambling operations are
8conducted or in which the casino is located.
9    From the tax revenue from riverboat or casino gambling
10deposited in the State Gaming Fund under this Section, an
11amount equal to 5% of the adjusted gross receipts generated by
12a riverboat designated in paragraph (3) of subsection (e-5) of
13Section 7 shall be divided and remitted monthly, subject to
14appropriation, as follows: 70% to Waukegan, 10% to Park City,
1515% to North Chicago, and 5% to Lake County.
16    From the tax revenue from riverboat or casino gambling
17deposited in the State Gaming Fund under this Section, an
18amount equal to 5% of the adjusted gross receipts generated by
19a riverboat designated in paragraph (4) of subsection (e-5) of
20Section 7 shall be remitted monthly, subject to appropriation,
21as follows: 70% to the City of Rockford, 5% to the City of
22Loves Park, 5% to the Village of Machesney, and 20% to
23Winnebago County.
24    From the tax revenue from riverboat or casino gambling
25deposited in the State Gaming Fund under this Section, an
26amount equal to 5% of the adjusted gross receipts generated by

 

 

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1a riverboat designated in paragraph (5) of subsection (e-5) of
2Section 7 shall be remitted monthly, subject to appropriation,
3as follows: 2% to the unit of local government in which the
4riverboat or casino is located, and 3% shall be distributed:
5(A) in accordance with a regional capital development plan
6entered into by the following communities: Village of Beecher,
7City of Blue Island, Village of Burnham, City of Calumet City,
8Village of Calumet Park, City of Chicago Heights, City of
9Country Club Hills, Village of Crestwood, Village of Crete,
10Village of Dixmoor, Village of Dolton, Village of East Hazel
11Crest, Village of Flossmoor, Village of Ford Heights, Village
12of Glenwood, City of Harvey, Village of Hazel Crest, Village
13of Homewood, Village of Lansing, Village of Lynwood, City of
14Markham, Village of Matteson, Village of Midlothian, Village
15of Monee, City of Oak Forest, Village of Olympia Fields,
16Village of Orland Hills, Village of Orland Park, City of Palos
17Heights, Village of Park Forest, Village of Phoenix, Village
18of Posen, Village of Richton Park, Village of Riverdale,
19Village of Robbins, Village of Sauk Village, Village of South
20Chicago Heights, Village of South Holland, Village of Steger,
21Village of Thornton, Village of Tinley Park, Village of
22University Park, and Village of Worth; or (B) if no regional
23capital development plan exists, equally among the communities
24listed in item (A) to be used for capital expenditures or
25public pension payments, or both.
26    Units of local government may refund any portion of the

 

 

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1payment that they receive pursuant to this subsection (b) to
2the riverboat or casino.
3    (b-4) Beginning on the first day a licensee under
4subsection (e-5) of Section 7 conducts gambling operations or
530 days after the effective date of this amendatory Act of the
6103rd General Assembly, whichever is sooner, either in a
7temporary facility or a permanent facility, and ending on July
831, 2042, from the tax revenue deposited in the State Gaming
9Fund under this Section, $5,000,000 shall be paid annually,
10subject to appropriation, to the host municipality of that
11owners licensee of a license issued or re-issued pursuant to
12Section 7.1 of this Act before January 1, 2012. Payments
13received by the host municipality pursuant to this subsection
14(b-4) may not be shared with any other unit of local
15government.
16    (b-5) Beginning on June 28, 2019 (the effective date of
17Public Act 101-31), from the tax revenue deposited in the
18State Gaming Fund under this Section, an amount equal to 3% of
19adjusted gross receipts generated by each organization gaming
20facility located outside Madison County shall be paid monthly,
21subject to appropriation by the General Assembly, to a
22municipality other than the Village of Stickney in which each
23organization gaming facility is located or, if the
24organization gaming facility is not located within a
25municipality, to the county in which the organization gaming
26facility is located, except as otherwise provided in this

 

 

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1Section. From the tax revenue deposited in the State Gaming
2Fund under this Section, an amount equal to 3% of adjusted
3gross receipts generated by an organization gaming facility
4located in the Village of Stickney shall be paid monthly,
5subject to appropriation by the General Assembly, as follows:
625% to the Village of Stickney, 5% to the City of Berwyn, 50%
7to the Town of Cicero, and 20% to the Stickney Public Health
8District.
9    From the tax revenue deposited in the State Gaming Fund
10under this Section, an amount equal to 5% of adjusted gross
11receipts generated by an organization gaming facility located
12in the City of Collinsville shall be paid monthly, subject to
13appropriation by the General Assembly, as follows: 30% to the
14City of Alton, 30% to the City of East St. Louis, and 40% to
15the City of Collinsville.
16    Municipalities and counties may refund any portion of the
17payment that they receive pursuant to this subsection (b-5) to
18the organization gaming facility.
19    (b-6) Beginning on June 28, 2019 (the effective date of
20Public Act 101-31), from the tax revenue deposited in the
21State Gaming Fund under this Section, an amount equal to 2% of
22adjusted gross receipts generated by an organization gaming
23facility located outside Madison County shall be paid monthly,
24subject to appropriation by the General Assembly, to the
25county in which the organization gaming facility is located
26for the purposes of its criminal justice system or health care

 

 

10300HB4951sam002- 1134 -LRB103 38094 HLH 74177 a

1system.
2    Counties may refund any portion of the payment that they
3receive pursuant to this subsection (b-6) to the organization
4gaming facility.
5    (b-7) From the tax revenue from the organization gaming
6licensee located in one of the following townships of Cook
7County: Bloom, Bremen, Calumet, Orland, Rich, Thornton, or
8Worth, an amount equal to 5% of the adjusted gross receipts
9generated by that organization gaming licensee shall be
10remitted monthly, subject to appropriation, as follows: 2% to
11the unit of local government in which the organization gaming
12licensee is located, and 3% shall be distributed: (A) in
13accordance with a regional capital development plan entered
14into by the following communities: Village of Beecher, City of
15Blue Island, Village of Burnham, City of Calumet City, Village
16of Calumet Park, City of Chicago Heights, City of Country Club
17Hills, Village of Crestwood, Village of Crete, Village of
18Dixmoor, Village of Dolton, Village of East Hazel Crest,
19Village of Flossmoor, Village of Ford Heights, Village of
20Glenwood, City of Harvey, Village of Hazel Crest, Village of
21Homewood, Village of Lansing, Village of Lynwood, City of
22Markham, Village of Matteson, Village of Midlothian, Village
23of Monee, City of Oak Forest, Village of Olympia Fields,
24Village of Orland Hills, Village of Orland Park, City of Palos
25Heights, Village of Park Forest, Village of Phoenix, Village
26of Posen, Village of Richton Park, Village of Riverdale,

 

 

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1Village of Robbins, Village of Sauk Village, Village of South
2Chicago Heights, Village of South Holland, Village of Steger,
3Village of Thornton, Village of Tinley Park, Village of
4University Park, and Village of Worth; or (B) if no regional
5capital development plan exists, equally among the communities
6listed in item (A) to be used for capital expenditures or
7public pension payments, or both.
8    (b-8) In lieu of the payments under subsection (b) of this
9Section, from the tax revenue deposited in the State Gaming
10Fund pursuant to riverboat or casino gambling operations
11conducted by an owners licensee under paragraph (1) of
12subsection (e-5) of Section 7, an amount equal to the tax
13revenue generated from the privilege tax imposed by paragraph
14(2) of subsection (a-5) that is to be paid to the City of
15Chicago shall be paid monthly, subject to appropriation by the
16General Assembly, as follows: (1) an amount equal to 0.5% of
17the annual adjusted gross receipts generated by the owners
18licensee under paragraph (1) of subsection (e-5) of Section 7
19to the home rule county in which the owners licensee is located
20for the purpose of enhancing the county's criminal justice
21system; and (2) the balance to the City of Chicago and shall be
22expended or obligated by the City of Chicago for pension
23payments in accordance with Public Act 99-506.
24    (c) Appropriations, as approved by the General Assembly,
25may be made from the State Gaming Fund to the Board (i) for the
26administration and enforcement of this Act and the Video

 

 

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1Gaming Act, (ii) for distribution to the Illinois State Police
2and to the Department of Revenue for the enforcement of this
3Act and the Video Gaming Act, and (iii) to the Department of
4Human Services for the administration of programs to treat
5problem gambling, including problem gambling from sports
6wagering. The Board's annual appropriations request must
7separately state its funding needs for the regulation of
8gaming authorized under Section 7.7, riverboat gaming, casino
9gaming, video gaming, and sports wagering.
10    (c-2) An amount equal to 2% of the adjusted gross receipts
11generated by an organization gaming facility located within a
12home rule county with a population of over 3,000,000
13inhabitants shall be paid, subject to appropriation from the
14General Assembly, from the State Gaming Fund to the home rule
15county in which the organization gaming licensee is located
16for the purpose of enhancing the county's criminal justice
17system.
18    (c-3) Appropriations, as approved by the General Assembly,
19may be made from the tax revenue deposited into the State
20Gaming Fund from organization gaming licensees pursuant to
21this Section for the administration and enforcement of this
22Act.
23    (c-4) After payments required under subsections (b),
24(b-5), (b-6), (b-7), (c), (c-2), and (c-3) have been made from
25the tax revenue from organization gaming licensees deposited
26into the State Gaming Fund under this Section, all remaining

 

 

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1amounts from organization gaming licensees shall be
2transferred into the Capital Projects Fund.
3    (c-5) (Blank).
4    (c-10) Each year the General Assembly shall appropriate
5from the General Revenue Fund to the Education Assistance Fund
6an amount equal to the amount paid into the Horse Racing Equity
7Fund pursuant to subsection (c-5) in the prior calendar year.
8    (c-15) After the payments required under subsections (b),
9(c), and (c-5) have been made, an amount equal to 2% of the
10adjusted gross receipts of (1) an owners licensee that
11relocates pursuant to Section 11.2, (2) an owners licensee
12conducting riverboat gambling operations pursuant to an owners
13license that is initially issued after June 25, 1999, or (3)
14the first riverboat gambling operations conducted by a
15licensed manager on behalf of the State under Section 7.3,
16whichever comes first, shall be paid, subject to appropriation
17from the General Assembly, from the State Gaming Fund to each
18home rule county with a population of over 3,000,000
19inhabitants for the purpose of enhancing the county's criminal
20justice system.
21    (c-20) Each year the General Assembly shall appropriate
22from the General Revenue Fund to the Education Assistance Fund
23an amount equal to the amount paid to each home rule county
24with a population of over 3,000,000 inhabitants pursuant to
25subsection (c-15) in the prior calendar year.
26    (c-21) After the payments required under subsections (b),

 

 

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1(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), and (c-4) have
2been made, an amount equal to 0.5% of the adjusted gross
3receipts generated by the owners licensee under paragraph (1)
4of subsection (e-5) of Section 7 shall be paid monthly,
5subject to appropriation from the General Assembly, from the
6State Gaming Fund to the home rule county in which the owners
7licensee is located for the purpose of enhancing the county's
8criminal justice system.
9    (c-22) After the payments required under subsections (b),
10(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), (c-4), and
11(c-21) have been made, an amount equal to 2% of the adjusted
12gross receipts generated by the owners licensee under
13paragraph (5) of subsection (e-5) of Section 7 shall be paid,
14subject to appropriation from the General Assembly, from the
15State Gaming Fund to the home rule county in which the owners
16licensee is located for the purpose of enhancing the county's
17criminal justice system.
18    (c-25) From July 1, 2013 and each July 1 thereafter
19through July 1, 2019, $1,600,000 shall be transferred from the
20State Gaming Fund to the Chicago State University Education
21Improvement Fund.
22    On July 1, 2020 and each July 1 thereafter, $3,000,000
23shall be transferred from the State Gaming Fund to the Chicago
24State University Education Improvement Fund.
25    (c-30) On July 1, 2013 or as soon as possible thereafter,
26$92,000,000 shall be transferred from the State Gaming Fund to

 

 

10300HB4951sam002- 1139 -LRB103 38094 HLH 74177 a

1the School Infrastructure Fund and $23,000,000 shall be
2transferred from the State Gaming Fund to the Horse Racing
3Equity Fund.
4    (c-35) Beginning on July 1, 2013, in addition to any
5amount transferred under subsection (c-30) of this Section,
6$5,530,000 shall be transferred monthly from the State Gaming
7Fund to the School Infrastructure Fund.
8    (d) From time to time, through June 30, 2021, the Board
9shall transfer the remainder of the funds generated by this
10Act into the Education Assistance Fund.
11    (d-5) Beginning on July 1, 2021, on the last day of each
12month, or as soon thereafter as possible, after all the
13required expenditures, distributions, and transfers have been
14made from the State Gaming Fund for the month pursuant to
15subsections (b) through (c-35), at the direction of the Board,
16the Comptroller shall direct and the Treasurer shall transfer
17$22,500,000, along with any deficiencies in such amounts from
18prior months in the same fiscal year, from the State Gaming
19Fund to the Education Assistance Fund; then, at the direction
20of the Board, the Comptroller shall direct and the Treasurer
21shall transfer the remainder of the funds generated by this
22Act, if any, from the State Gaming Fund to the Capital Projects
23Fund.
24    (e) Nothing in this Act shall prohibit the unit of local
25government designated as the home dock of the riverboat from
26entering into agreements with other units of local government

 

 

10300HB4951sam002- 1140 -LRB103 38094 HLH 74177 a

1in this State or in other states to share its portion of the
2tax revenue.
3    (f) To the extent practicable, the Board shall administer
4and collect the wagering taxes imposed by this Section in a
5manner consistent with the provisions of Sections 4, 5, 5a,
65b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of
7the Retailers' Occupation Tax Act and Section 3-7 of the
8Uniform Penalty and Interest Act.
9(Source: P.A. 102-16, eff. 6-17-21; 102-538, eff. 8-20-21;
10102-689, eff. 12-17-21; 102-699, eff. 4-19-22; 103-8, eff.
116-7-23; 103-574, eff. 12-8-23.)
 
12
ARTICLE 165.

 
13    Section 165-5. The Illinois Local Library Act is amended
14by changing Section 4-9 as follows:
 
15    (75 ILCS 5/4-9)  (from Ch. 81, par. 4-9)
16    Sec. 4-9. In townships and in cities, villages and
17incorporated towns having a population of 500,000 or less, the
18board of trustees shall require the treasurer of such board or
19such other person as may be designated as the custodian of the
20moneys paid over to such board to give a bond to be approved by
21such board and in such amount, not less than 10% 50% of the
22total funds received by the library in the last fiscal year,
23conditioned that he will safely keep and pay over upon the

 

 

10300HB4951sam002- 1141 -LRB103 38094 HLH 74177 a

1order of such board all funds received and held by him for such
2board of trustees. For a library in a city, village,
3incorporated town or township, the board of library trustees
4may designate the treasurer of the corporate authority, or the
5supervisor in the case of a township, as the custodian of the
6library fund, and the bond given by the treasurer or the
7supervisor shall satisfy the bond requirements of this section
8when properly endorsed. The cost of any surety bond shall be
9borne by the library. As an alternative to a personal bond on
10the treasurer or custodian of funds, the board of trustees may
11require the treasurer or custodian to secure for the library
12an insurance policy or other insurance instrument that
13provides the library with coverage for negligent or
14intentional acts by library officials and employees that could
15result in the loss of library funds. The coverage shall be in
16an amount at least equal to 10% 50% of the average amount of
17the library's operating fund from the prior 3 fiscal years.
18The coverage shall be placed with an insurer approved by the
19board. The cost of any such coverage shall be borne by the
20library. The library shall provide the Illinois State Library
21a copy of the library's certificate of insurance at the time
22the library's annual report is filed.
23(Source: P.A. 97-101, eff. 1-1-12.)
 
24    Section 165-10. The Illinois Library System Act is amended
25by changing Section 5 as follows:
 

 

 

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1    (75 ILCS 10/5)  (from Ch. 81, par. 115)
2    Sec. 5. Each library system created as provided in Section
34 of this Act shall be governed by a board of directors
4numbering at least 5 and no more than 15 persons, except as
5required by Section 6 for library systems in cities with a
6population of 500,000 or more. The board shall be
7representative of the variety of library interests in the
8system, and at least a majority shall be elected or selected
9from the governing boards of the member public libraries, with
10not more than one director representing a single member
11library. For library systems as defined in subparagraph (3) of
12the definition of "library system" in Section 2, the board
13members shall be representative of the types of libraries that
14library system serves. The number of directors, the manner of
15election or selection, the term of office and the provision
16for filling vacancies shall be determined by the system
17governing board except that all board members must be eligible
18electors in the geographical area of the system. No director
19of any library system, however, shall be permitted to serve
20for more than a total of 6 years unless 2 years have elapsed
21since his sixth year of service.
22    The board of directors shall elect a president, secretary
23and treasurer. Before entering upon his duties, the treasurer
24shall be required to give a bond in an amount to be approved by
25the board, but in no case shall such amount be less than 10%

 

 

10300HB4951sam002- 1143 -LRB103 38094 HLH 74177 a

150% of the system's area and per capita grant for the previous
2year, conditioned that he will safely keep and pay over upon
3the order of such board all funds received and held by him for
4the library system. As an alternative to a personal bond on the
5treasurer, the board of trustees may require the treasurer to
6secure for the system an insurance policy or other insurance
7instrument that provides the library with coverage for
8negligent or intentional acts by system officials and
9employees that could result in the loss of system funds. The
10coverage shall be in an amount at least equal to 10% 50% of the
11average amount of the system's operating fund from the prior 3
12fiscal years. The coverage shall be placed with an insurer
13approved by the board. The cost of any such coverage shall be
14borne by the system. The system shall provide the Illinois
15State Library a copy of the system's certificate of insurance
16at the time the system's annual report is filed. The funds of
17the library system shall be deposited in a bank or savings and
18loan association designated by the board of directors and
19shall be expended only under the direction of such board upon
20properly authenticated vouchers.
21    No bank or savings and loan association shall receive
22public funds as permitted by this Section, unless it has
23complied with the requirements established pursuant to Section
246 of the Public Funds Investment Act.
25    The members of the board of directors of the library
26system shall serve without compensation but their actual and

 

 

10300HB4951sam002- 1144 -LRB103 38094 HLH 74177 a

1necessary expenses shall be a proper charge against the
2library fund.
3(Source: P.A. 97-101, eff. 1-1-12.)
 
4    Section 165-15. The Public Library District Act of 1991 is
5amended by changing Section 30-45 as follows:
 
6    (75 ILCS 16/30-45)
7    Sec. 30-45. Duties of officers.
8    (a) The duties of the officers of the board are as provided
9in this Section.
10    (b) The president shall preside over all meetings, appoint
11members of committees authorized by the district's
12regulations, and perform other duties specified by the
13district's regulations, ordinances, or other appropriate
14action. In the president's absence, the vice president shall
15preside at meetings. The president shall not have or exercise
16veto powers.
17    (c) The vice president's duties shall be prescribed by
18regulations.
19    (d) The treasurer shall keep and maintain accounts and
20records of the district during the treasurer's term in office,
21indicating in those accounts and records a record of all
22receipts, disbursements, and balances in any funds.
23    Annual audit and financial report requirements shall
24conform with Section 3 of the Governmental Account Audit Act.

 

 

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1    (e) The treasurer shall give bond to the district to
2faithfully discharge the duties of the office and to account
3to the district for all district funds coming into the
4treasurer's hands. The bond shall be in an amount and with
5sureties approved by the board. The amount of the bond shall be
6based upon a minimum of 10% 50% of the total funds received by
7the district in the last previous fiscal year. The cost of any
8surety bond shall be borne by the district. As an alternative
9to a personal bond on the treasurer, the treasurer may secure
10for the district an insurance policy or other insurance
11instrument that provides the district with coverage for
12negligent or intentional acts by district officials and
13employees that could result in the loss of district funds. The
14coverage shall be in an amount at least equal to 10% 50% of the
15average amount of the district's operating fund from the prior
163 fiscal years. The coverage shall be placed with an insurer
17approved by the board. The cost of any such coverage shall be
18borne by the district. The system shall provide the Illinois
19State Library a copy of the district's certificate of
20insurance at the time the district's annual report is filed.
21    (f) Any person, entity, or public body or agency
22possessing district funds, property, or records shall, upon
23demand by any trustee, transfer and release the funds,
24property, or records to the treasurer.
25    (g) The secretary shall keep and maintain appropriate
26records for his or her term in office and shall include in

 

 

10300HB4951sam002- 1146 -LRB103 38094 HLH 74177 a

1those records a record of the minutes of all meetings, the
2names of those in attendance, the ordinances enacted, the
3resolutions and regulations adopted, and all other pertinent
4written matter affecting the operation of the district. The
5secretary may administer oaths and affirmations for the
6purposes of this Act.
7(Source: P.A. 97-101, eff. 1-1-12.)
 
8
ARTICLE 170.

 
9    Section 170-1. Short title. This Act may be cited as the
10Illinois Gives Tax Credit Act. References in this Article to
11"this Act" mean this Article.
 
12    Section 170-5. Definitions. As used in this Act:
13    "Business entity" means a corporation (including a
14Subchapter S corporation), trust, estate, partnership, limited
15liability company, or sole proprietorship.
16    "Credit-eligible endowment gift" means an endowment gift
17for which a taxpayer intends to apply for an income tax credit
18under this Act.
19    "Department" means the Department of Revenue.
20    "Donor advised fund" has the meaning given to that term in
21subsection (d) of Section 4966 of the Internal Revenue Code of
221986.
23    "Endowment gift" means an irrevocable contribution to a

 

 

10300HB4951sam002- 1147 -LRB103 38094 HLH 74177 a

1permanent endowment fund held by a qualified community
2foundation.
3    "Permanent endowment fund" means a fund that (i) is held
4by a qualified community foundation, (ii) provides charitable
5grants exclusively for the benefit of residents of the State
6or charities and charitable projects located in the State,
7(iii) is intended to exist in perpetuity, (iv) has an annual
8spending rate based on the foundation spending policy, but not
9to exceed 7%, and (v) is not a donor advised fund.
10    "Qualified community foundation" means a community
11foundation or similar publicly supported organization
12described in Section 170 (b)(1)(A)(vi) of the Internal Revenue
13Code of 1986 that is organized or operating in this State and
14that substantially complies with the national standards for
15U.S. community foundations established by the Community
16Foundations National Standards, as determined by the
17Department.
18    "Taxpayer" means any individual who is subject to the tax
19imposed under subsections (a) and (b) of Section 201 of the
20Illinois Income Tax Act or any business entity that is subject
21to the tax imposed under subsections (a) and (b) of Section 201
22of the Illinois Income Tax Act.
 
23    Section 170-10. Tax credit awards; limitations.
24    (a) For taxable years ending on or after December 31, 2025
25and ending before January 1, 2030, the Department shall award,

 

 

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1in accordance with this Act, income tax credits to taxpayers
2who provide an endowment gift to a permanent endowment fund
3during the taxable year and receive a certificate of receipt
4under Section 170-15 for that gift. Subject to the limitations
5in this Section, the amount of the credit that may be awarded
6to a taxpayer by the Department under this Act is an amount
7equal to 25% of the endowment gift.
8    (b) The aggregate amount of all Illinois Gives tax credits
9awarded by the Department under this Act in any calendar year
10may not exceed $5,000,000.
11    (c) The aggregate amount of all Illinois Gives tax credits
12that the Department may award to any taxpayer under this Act in
13any calendar year may not exceed $100,000.
14    (d) The amount of contributions to any specific qualified
15community foundation that are eligible for Illinois Gives tax
16credits under this Section in any calendar year shall not
17exceed $3,000,000.
18    (e) Of the annual amount available for tax credits, 25%
19must be reserved for endowment gifts that do not exceed the
20small gift maximum set forth in this subsection. The small
21gift maximum is $25,000. For purposes of determining if a
22donation meets the small gift maximum, the amount of the
23credit authorization certificate under Section 170-15 shall be
24used.
25    (f) For the purpose of this Section, a credit is
26considered to be awarded on the date the Department issues an

 

 

10300HB4951sam002- 1149 -LRB103 38094 HLH 74177 a

1approved contribution authorization certificate under Section
2170-15.
 
3    Section 170-15. Applications for tax credits.
4    (a) The taxpayer shall apply to the Department, in the
5form and manner prescribed by the Department, for a
6contribution authorization certificate. A taxpayer who makes
7more than one credit-eligible endowment gift must make a
8separate application for each contribution authorization
9certificate. Applications under this subsection shall be
10reviewed by the Department and shall either be approved or
11denied. Each approved contribution authorization certificate
12shall be sent to the taxpayer within 3 business days after the
13certificate is approved. The Department shall maintain on its
14website a running total of: (i) the total amount of credits
15remaining under this Act for which taxpayers may apply for a
16contribution authorization certificate issued in the calendar
17year; (ii) the total amount of credits allocated during the
18calendar year for each specific community foundation; and
19(iii) the total amount remaining for the calendar year under
20the small gift maximum set forth in Section 170-10. Those
21running totals shall be updated every business day.
22    (b) The taxpayer shall make the endowment gift to the
23permanent endowment fund either prior to or within 10 business
24days after the taxpayer receives the approved contribution
25authorization certificate under subsection (a). The qualified

 

 

10300HB4951sam002- 1150 -LRB103 38094 HLH 74177 a

1community foundation shall, within 30 business days after
2receipt of an endowment gift for which a contribution
3authorization certificate has been approved by the Department
4under subsection (a), issue to the taxpayer a written
5certificate of receipt, which shall contain the information
6required by the Department by rule. No receipt shall be issued
7for amounts that are not actually received by the qualified
8community foundation within 10 business days after the
9taxpayer receives the approved contribution authorization
10certificate.
 
11    Section 170-20. Approval to issue certificates of receipt.
12    (a) A qualified community foundation shall submit an
13application for approval to issue certificates of receipt, in
14the form and manner prescribed by the Department, provided
15that each application shall include:
16        (1) documentary evidence that the qualified community
17    foundation meets the qualifications under Section
18    170(b)(1)(A)(vi) of the Internal Revenue Code and
19    substantially complies with the standards established by
20    Community Foundations National Standards;
21        (2) certification that the qualified community
22    foundation holds a permanent endowment fund meeting the
23    criteria established in Section 170-5;
24        (3) a list of the names and addresses of all members of
25    the governing board of the qualified community foundation;

 

 

10300HB4951sam002- 1151 -LRB103 38094 HLH 74177 a

1    and
2        (4) a copy of the most recent financial audit of the
3    qualified community foundation's accounts and records
4    conducted by an independent certified public accountant in
5    accordance with auditing standards generally accepted in
6    the United States, government auditing standards, and
7    rules adopted by the Department.
8    (b) The Department shall review and either approve or deny
9each application to issue certificates of receipt pursuant to
10this Act. Approval or denial of an application shall be made on
11a periodic basis. Applicants shall be notified of the
12Department's determination within 30 business days after the
13application is received.
 
14    Section 170-25. Certificates of receipt.
15    (a) No qualified community foundation shall issue a
16certificate of receipt for any qualified contribution made by
17a taxpayer under this Act unless that qualified community
18foundation has been approved to issue certificates of receipt
19pursuant to Section 170-20 of this Act.
20    (b) No qualified community foundation shall issue a
21certificate of receipt for a contribution made by a taxpayer
22unless the taxpayer has been issued a credit authorization
23certificate by the Department.
24    (c) If a taxpayer makes a contribution to a qualified
25community foundation prior to the date by which the authorized

 

 

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1contribution shall be made as provided in Section 170-15, the
2qualified community foundation shall, within 30 business days
3after receipt of the authorized contribution, issue to the
4taxpayer a written certificate of receipt.
5    (d) If a taxpayer fails to make all or a portion of a
6contribution prior to the date by which such authorized
7contribution is required to be made, the taxpayer shall not be
8entitled to a certificate of receipt for that portion of the
9authorized contribution not made.
10    (e) Each certificate of receipt shall state:
11        (1) the name and address of the issuing qualified
12    community foundation;
13        (2) the taxpayer's name and address;
14        (3) the date of each qualified contribution;
15        (4) the amount of each qualified contribution;
16        (5) the total qualified contribution amount; and
17        (6) any other information that the Department deems
18    necessary.
19    (f) Upon the issuance of a certificate of receipt, the
20issuing qualified community foundation shall, within 10
21business days after issuing the certificate of receipt,
22provide the Department with notification of the issuance of
23such certificate, in the form and manner prescribed by the
24Department, provided that such notification shall include:
25        (1) the taxpayer's name and address;
26        (2) the date of the issuance of a certificate of

 

 

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1    receipt;
2        (3) the qualified contribution date or dates and the
3    amounts contributed on such dates;
4        (4) the total qualified contribution listed on such
5    certificates;
6        (5) the issuing qualified community foundation's name
7    and address; and
8        (6) any other information the Department may deem
9    necessary.
10    (g) Any portion of a contribution that a taxpayer fails to
11make by the date indicated on the authorized contribution
12certificate shall no longer be deducted from the cap
13prescribed in Section 170-10 of this Act.
 
14    Section 170-30. Annual report. By March 31, 2026, and by
15March 31 of each subsequent year, the Department must submit
16an annual report to the Governor and the General Assembly
17concerning the activities conducted under this Act during the
18previous calendar year. The report must include a detailed
19listing of tax credits authorized under this Act by the
20Department. The report may not disclose any information if the
21disclosure would violate Section 917 of the Illinois Income
22Tax Act.
 
23    Section 170-35. Rulemaking. The Department may adopt rules
24for the implementation of this Act.
 

 

 

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1    Section 170-90. The Illinois Income Tax Act is amended by
2changing Section 203 and by adding Section 241 as follows:
 
3    (35 ILCS 5/203)
4    Sec. 203. Base income defined.
5    (a) Individuals.
6        (1) In general. In the case of an individual, base
7    income means an amount equal to the taxpayer's adjusted
8    gross income for the taxable year as modified by paragraph
9    (2).
10        (2) Modifications. The adjusted gross income referred
11    to in paragraph (1) shall be modified by adding thereto
12    the sum of the following amounts:
13            (A) An amount equal to all amounts paid or accrued
14        to the taxpayer as interest or dividends during the
15        taxable year to the extent excluded from gross income
16        in the computation of adjusted gross income, except
17        stock dividends of qualified public utilities
18        described in Section 305(e) of the Internal Revenue
19        Code;
20            (B) An amount equal to the amount of tax imposed by
21        this Act to the extent deducted from gross income in
22        the computation of adjusted gross income for the
23        taxable year;
24            (C) An amount equal to the amount received during

 

 

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1        the taxable year as a recovery or refund of real
2        property taxes paid with respect to the taxpayer's
3        principal residence under the Revenue Act of 1939 and
4        for which a deduction was previously taken under
5        subparagraph (L) of this paragraph (2) prior to July
6        1, 1991, the retrospective application date of Article
7        4 of Public Act 87-17. In the case of multi-unit or
8        multi-use structures and farm dwellings, the taxes on
9        the taxpayer's principal residence shall be that
10        portion of the total taxes for the entire property
11        which is attributable to such principal residence;
12            (D) An amount equal to the amount of the capital
13        gain deduction allowable under the Internal Revenue
14        Code, to the extent deducted from gross income in the
15        computation of adjusted gross income;
16            (D-5) An amount, to the extent not included in
17        adjusted gross income, equal to the amount of money
18        withdrawn by the taxpayer in the taxable year from a
19        medical care savings account and the interest earned
20        on the account in the taxable year of a withdrawal
21        pursuant to subsection (b) of Section 20 of the
22        Medical Care Savings Account Act or subsection (b) of
23        Section 20 of the Medical Care Savings Account Act of
24        2000;
25            (D-10) For taxable years ending after December 31,
26        1997, an amount equal to any eligible remediation

 

 

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1        costs that the individual deducted in computing
2        adjusted gross income and for which the individual
3        claims a credit under subsection (l) of Section 201;
4            (D-15) For taxable years 2001 and thereafter, an
5        amount equal to the bonus depreciation deduction taken
6        on the taxpayer's federal income tax return for the
7        taxable year under subsection (k) of Section 168 of
8        the Internal Revenue Code;
9            (D-16) If the taxpayer sells, transfers, abandons,
10        or otherwise disposes of property for which the
11        taxpayer was required in any taxable year to make an
12        addition modification under subparagraph (D-15), then
13        an amount equal to the aggregate amount of the
14        deductions taken in all taxable years under
15        subparagraph (Z) with respect to that property.
16            If the taxpayer continues to own property through
17        the last day of the last tax year for which a
18        subtraction is allowed with respect to that property
19        under subparagraph (Z) and for which the taxpayer was
20        allowed in any taxable year to make a subtraction
21        modification under subparagraph (Z), then an amount
22        equal to that subtraction modification.
23            The taxpayer is required to make the addition
24        modification under this subparagraph only once with
25        respect to any one piece of property;
26            (D-17) An amount equal to the amount otherwise

 

 

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1        allowed as a deduction in computing base income for
2        interest paid, accrued, or incurred, directly or
3        indirectly, (i) for taxable years ending on or after
4        December 31, 2004, to a foreign person who would be a
5        member of the same unitary business group but for the
6        fact that foreign person's business activity outside
7        the United States is 80% or more of the foreign
8        person's total business activity and (ii) for taxable
9        years ending on or after December 31, 2008, to a person
10        who would be a member of the same unitary business
11        group but for the fact that the person is prohibited
12        under Section 1501(a)(27) from being included in the
13        unitary business group because he or she is ordinarily
14        required to apportion business income under different
15        subsections of Section 304. The addition modification
16        required by this subparagraph shall be reduced to the
17        extent that dividends were included in base income of
18        the unitary group for the same taxable year and
19        received by the taxpayer or by a member of the
20        taxpayer's unitary business group (including amounts
21        included in gross income under Sections 951 through
22        964 of the Internal Revenue Code and amounts included
23        in gross income under Section 78 of the Internal
24        Revenue Code) with respect to the stock of the same
25        person to whom the interest was paid, accrued, or
26        incurred.

 

 

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1            This paragraph shall not apply to the following:
2                (i) an item of interest paid, accrued, or
3            incurred, directly or indirectly, to a person who
4            is subject in a foreign country or state, other
5            than a state which requires mandatory unitary
6            reporting, to a tax on or measured by net income
7            with respect to such interest; or
8                (ii) an item of interest paid, accrued, or
9            incurred, directly or indirectly, to a person if
10            the taxpayer can establish, based on a
11            preponderance of the evidence, both of the
12            following:
13                    (a) the person, during the same taxable
14                year, paid, accrued, or incurred, the interest
15                to a person that is not a related member, and
16                    (b) the transaction giving rise to the
17                interest expense between the taxpayer and the
18                person did not have as a principal purpose the
19                avoidance of Illinois income tax, and is paid
20                pursuant to a contract or agreement that
21                reflects an arm's-length interest rate and
22                terms; or
23                (iii) the taxpayer can establish, based on
24            clear and convincing evidence, that the interest
25            paid, accrued, or incurred relates to a contract
26            or agreement entered into at arm's-length rates

 

 

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1            and terms and the principal purpose for the
2            payment is not federal or Illinois tax avoidance;
3            or
4                (iv) an item of interest paid, accrued, or
5            incurred, directly or indirectly, to a person if
6            the taxpayer establishes by clear and convincing
7            evidence that the adjustments are unreasonable; or
8            if the taxpayer and the Director agree in writing
9            to the application or use of an alternative method
10            of apportionment under Section 304(f).
11                Nothing in this subsection shall preclude the
12            Director from making any other adjustment
13            otherwise allowed under Section 404 of this Act
14            for any tax year beginning after the effective
15            date of this amendment provided such adjustment is
16            made pursuant to regulation adopted by the
17            Department and such regulations provide methods
18            and standards by which the Department will utilize
19            its authority under Section 404 of this Act;
20            (D-18) An amount equal to the amount of intangible
21        expenses and costs otherwise allowed as a deduction in
22        computing base income, and that were paid, accrued, or
23        incurred, directly or indirectly, (i) for taxable
24        years ending on or after December 31, 2004, to a
25        foreign person who would be a member of the same
26        unitary business group but for the fact that the

 

 

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1        foreign person's business activity outside the United
2        States is 80% or more of that person's total business
3        activity and (ii) for taxable years ending on or after
4        December 31, 2008, to a person who would be a member of
5        the same unitary business group but for the fact that
6        the person is prohibited under Section 1501(a)(27)
7        from being included in the unitary business group
8        because he or she is ordinarily required to apportion
9        business income under different subsections of Section
10        304. The addition modification required by this
11        subparagraph shall be reduced to the extent that
12        dividends were included in base income of the unitary
13        group for the same taxable year and received by the
14        taxpayer or by a member of the taxpayer's unitary
15        business group (including amounts included in gross
16        income under Sections 951 through 964 of the Internal
17        Revenue Code and amounts included in gross income
18        under Section 78 of the Internal Revenue Code) with
19        respect to the stock of the same person to whom the
20        intangible expenses and costs were directly or
21        indirectly paid, incurred, or accrued. The preceding
22        sentence does not apply to the extent that the same
23        dividends caused a reduction to the addition
24        modification required under Section 203(a)(2)(D-17) of
25        this Act. As used in this subparagraph, the term
26        "intangible expenses and costs" includes (1) expenses,

 

 

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1        losses, and costs for, or related to, the direct or
2        indirect acquisition, use, maintenance or management,
3        ownership, sale, exchange, or any other disposition of
4        intangible property; (2) losses incurred, directly or
5        indirectly, from factoring transactions or discounting
6        transactions; (3) royalty, patent, technical, and
7        copyright fees; (4) licensing fees; and (5) other
8        similar expenses and costs. For purposes of this
9        subparagraph, "intangible property" includes patents,
10        patent applications, trade names, trademarks, service
11        marks, copyrights, mask works, trade secrets, and
12        similar types of intangible assets.
13            This paragraph shall not apply to the following:
14                (i) any item of intangible expenses or costs
15            paid, accrued, or incurred, directly or
16            indirectly, from a transaction with a person who
17            is subject in a foreign country or state, other
18            than a state which requires mandatory unitary
19            reporting, to a tax on or measured by net income
20            with respect to such item; or
21                (ii) any item of intangible expense or cost
22            paid, accrued, or incurred, directly or
23            indirectly, if the taxpayer can establish, based
24            on a preponderance of the evidence, both of the
25            following:
26                    (a) the person during the same taxable

 

 

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1                year paid, accrued, or incurred, the
2                intangible expense or cost to a person that is
3                not a related member, and
4                    (b) the transaction giving rise to the
5                intangible expense or cost between the
6                taxpayer and the person did not have as a
7                principal purpose the avoidance of Illinois
8                income tax, and is paid pursuant to a contract
9                or agreement that reflects arm's-length terms;
10                or
11                (iii) any item of intangible expense or cost
12            paid, accrued, or incurred, directly or
13            indirectly, from a transaction with a person if
14            the taxpayer establishes by clear and convincing
15            evidence, that the adjustments are unreasonable;
16            or if the taxpayer and the Director agree in
17            writing to the application or use of an
18            alternative method of apportionment under Section
19            304(f);
20                Nothing in this subsection shall preclude the
21            Director from making any other adjustment
22            otherwise allowed under Section 404 of this Act
23            for any tax year beginning after the effective
24            date of this amendment provided such adjustment is
25            made pursuant to regulation adopted by the
26            Department and such regulations provide methods

 

 

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1            and standards by which the Department will utilize
2            its authority under Section 404 of this Act;
3            (D-19) For taxable years ending on or after
4        December 31, 2008, an amount equal to the amount of
5        insurance premium expenses and costs otherwise allowed
6        as a deduction in computing base income, and that were
7        paid, accrued, or incurred, directly or indirectly, to
8        a person who would be a member of the same unitary
9        business group but for the fact that the person is
10        prohibited under Section 1501(a)(27) from being
11        included in the unitary business group because he or
12        she is ordinarily required to apportion business
13        income under different subsections of Section 304. The
14        addition modification required by this subparagraph
15        shall be reduced to the extent that dividends were
16        included in base income of the unitary group for the
17        same taxable year and received by the taxpayer or by a
18        member of the taxpayer's unitary business group
19        (including amounts included in gross income under
20        Sections 951 through 964 of the Internal Revenue Code
21        and amounts included in gross income under Section 78
22        of the Internal Revenue Code) with respect to the
23        stock of the same person to whom the premiums and costs
24        were directly or indirectly paid, incurred, or
25        accrued. The preceding sentence does not apply to the
26        extent that the same dividends caused a reduction to

 

 

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1        the addition modification required under Section
2        203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
3        Act;
4            (D-20) For taxable years beginning on or after
5        January 1, 2002 and ending on or before December 31,
6        2006, in the case of a distribution from a qualified
7        tuition program under Section 529 of the Internal
8        Revenue Code, other than (i) a distribution from a
9        College Savings Pool created under Section 16.5 of the
10        State Treasurer Act or (ii) a distribution from the
11        Illinois Prepaid Tuition Trust Fund, an amount equal
12        to the amount excluded from gross income under Section
13        529(c)(3)(B). For taxable years beginning on or after
14        January 1, 2007, in the case of a distribution from a
15        qualified tuition program under Section 529 of the
16        Internal Revenue Code, other than (i) a distribution
17        from a College Savings Pool created under Section 16.5
18        of the State Treasurer Act, (ii) a distribution from
19        the Illinois Prepaid Tuition Trust Fund, or (iii) a
20        distribution from a qualified tuition program under
21        Section 529 of the Internal Revenue Code that (I)
22        adopts and determines that its offering materials
23        comply with the College Savings Plans Network's
24        disclosure principles and (II) has made reasonable
25        efforts to inform in-state residents of the existence
26        of in-state qualified tuition programs by informing

 

 

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1        Illinois residents directly and, where applicable, to
2        inform financial intermediaries distributing the
3        program to inform in-state residents of the existence
4        of in-state qualified tuition programs at least
5        annually, an amount equal to the amount excluded from
6        gross income under Section 529(c)(3)(B).
7            For the purposes of this subparagraph (D-20), a
8        qualified tuition program has made reasonable efforts
9        if it makes disclosures (which may use the term
10        "in-state program" or "in-state plan" and need not
11        specifically refer to Illinois or its qualified
12        programs by name) (i) directly to prospective
13        participants in its offering materials or makes a
14        public disclosure, such as a website posting; and (ii)
15        where applicable, to intermediaries selling the
16        out-of-state program in the same manner that the
17        out-of-state program distributes its offering
18        materials;
19            (D-20.5) For taxable years beginning on or after
20        January 1, 2018, in the case of a distribution from a
21        qualified ABLE program under Section 529A of the
22        Internal Revenue Code, other than a distribution from
23        a qualified ABLE program created under Section 16.6 of
24        the State Treasurer Act, an amount equal to the amount
25        excluded from gross income under Section 529A(c)(1)(B)
26        of the Internal Revenue Code;

 

 

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1            (D-21) For taxable years beginning on or after
2        January 1, 2007, in the case of transfer of moneys from
3        a qualified tuition program under Section 529 of the
4        Internal Revenue Code that is administered by the
5        State to an out-of-state program, an amount equal to
6        the amount of moneys previously deducted from base
7        income under subsection (a)(2)(Y) of this Section;
8            (D-21.5) For taxable years beginning on or after
9        January 1, 2018, in the case of the transfer of moneys
10        from a qualified tuition program under Section 529 or
11        a qualified ABLE program under Section 529A of the
12        Internal Revenue Code that is administered by this
13        State to an ABLE account established under an
14        out-of-state ABLE account program, an amount equal to
15        the contribution component of the transferred amount
16        that was previously deducted from base income under
17        subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
18        Section;
19            (D-22) For taxable years beginning on or after
20        January 1, 2009, and prior to January 1, 2018, in the
21        case of a nonqualified withdrawal or refund of moneys
22        from a qualified tuition program under Section 529 of
23        the Internal Revenue Code administered by the State
24        that is not used for qualified expenses at an eligible
25        education institution, an amount equal to the
26        contribution component of the nonqualified withdrawal

 

 

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1        or refund that was previously deducted from base
2        income under subsection (a)(2)(y) of this Section,
3        provided that the withdrawal or refund did not result
4        from the beneficiary's death or disability. For
5        taxable years beginning on or after January 1, 2018:
6        (1) in the case of a nonqualified withdrawal or
7        refund, as defined under Section 16.5 of the State
8        Treasurer Act, of moneys from a qualified tuition
9        program under Section 529 of the Internal Revenue Code
10        administered by the State, an amount equal to the
11        contribution component of the nonqualified withdrawal
12        or refund that was previously deducted from base
13        income under subsection (a)(2)(Y) of this Section, and
14        (2) in the case of a nonqualified withdrawal or refund
15        from a qualified ABLE program under Section 529A of
16        the Internal Revenue Code administered by the State
17        that is not used for qualified disability expenses, an
18        amount equal to the contribution component of the
19        nonqualified withdrawal or refund that was previously
20        deducted from base income under subsection (a)(2)(HH)
21        of this Section;
22            (D-23) An amount equal to the credit allowable to
23        the taxpayer under Section 218(a) of this Act,
24        determined without regard to Section 218(c) of this
25        Act;
26            (D-24) For taxable years ending on or after

 

 

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1        December 31, 2017, an amount equal to the deduction
2        allowed under Section 199 of the Internal Revenue Code
3        for the taxable year;
4            (D-25) In the case of a resident, an amount equal
5        to the amount of tax for which a credit is allowed
6        pursuant to Section 201(p)(7) of this Act;
7    and by deducting from the total so obtained the sum of the
8    following amounts:
9            (E) For taxable years ending before December 31,
10        2001, any amount included in such total in respect of
11        any compensation (including but not limited to any
12        compensation paid or accrued to a serviceman while a
13        prisoner of war or missing in action) paid to a
14        resident by reason of being on active duty in the Armed
15        Forces of the United States and in respect of any
16        compensation paid or accrued to a resident who as a
17        governmental employee was a prisoner of war or missing
18        in action, and in respect of any compensation paid to a
19        resident in 1971 or thereafter for annual training
20        performed pursuant to Sections 502 and 503, Title 32,
21        United States Code as a member of the Illinois
22        National Guard or, beginning with taxable years ending
23        on or after December 31, 2007, the National Guard of
24        any other state. For taxable years ending on or after
25        December 31, 2001, any amount included in such total
26        in respect of any compensation (including but not

 

 

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1        limited to any compensation paid or accrued to a
2        serviceman while a prisoner of war or missing in
3        action) paid to a resident by reason of being a member
4        of any component of the Armed Forces of the United
5        States and in respect of any compensation paid or
6        accrued to a resident who as a governmental employee
7        was a prisoner of war or missing in action, and in
8        respect of any compensation paid to a resident in 2001
9        or thereafter by reason of being a member of the
10        Illinois National Guard or, beginning with taxable
11        years ending on or after December 31, 2007, the
12        National Guard of any other state. The provisions of
13        this subparagraph (E) are exempt from the provisions
14        of Section 250;
15            (F) An amount equal to all amounts included in
16        such total pursuant to the provisions of Sections
17        402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
18        408 of the Internal Revenue Code, or included in such
19        total as distributions under the provisions of any
20        retirement or disability plan for employees of any
21        governmental agency or unit, or retirement payments to
22        retired partners, which payments are excluded in
23        computing net earnings from self employment by Section
24        1402 of the Internal Revenue Code and regulations
25        adopted pursuant thereto;
26            (G) The valuation limitation amount;

 

 

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1            (H) An amount equal to the amount of any tax
2        imposed by this Act which was refunded to the taxpayer
3        and included in such total for the taxable year;
4            (I) An amount equal to all amounts included in
5        such total pursuant to the provisions of Section 111
6        of the Internal Revenue Code as a recovery of items
7        previously deducted from adjusted gross income in the
8        computation of taxable income;
9            (J) An amount equal to those dividends included in
10        such total which were paid by a corporation which
11        conducts business operations in a River Edge
12        Redevelopment Zone or zones created under the River
13        Edge Redevelopment Zone Act, and conducts
14        substantially all of its operations in a River Edge
15        Redevelopment Zone or zones. This subparagraph (J) is
16        exempt from the provisions of Section 250;
17            (K) An amount equal to those dividends included in
18        such total that were paid by a corporation that
19        conducts business operations in a federally designated
20        Foreign Trade Zone or Sub-Zone and that is designated
21        a High Impact Business located in Illinois; provided
22        that dividends eligible for the deduction provided in
23        subparagraph (J) of paragraph (2) of this subsection
24        shall not be eligible for the deduction provided under
25        this subparagraph (K);
26            (L) For taxable years ending after December 31,

 

 

10300HB4951sam002- 1171 -LRB103 38094 HLH 74177 a

1        1983, an amount equal to all social security benefits
2        and railroad retirement benefits included in such
3        total pursuant to Sections 72(r) and 86 of the
4        Internal Revenue Code;
5            (M) With the exception of any amounts subtracted
6        under subparagraph (N), an amount equal to the sum of
7        all amounts disallowed as deductions by (i) Sections
8        171(a)(2) and 265(a)(2) of the Internal Revenue Code,
9        and all amounts of expenses allocable to interest and
10        disallowed as deductions by Section 265(a)(1) of the
11        Internal Revenue Code; and (ii) for taxable years
12        ending on or after August 13, 1999, Sections
13        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
14        Internal Revenue Code, plus, for taxable years ending
15        on or after December 31, 2011, Section 45G(e)(3) of
16        the Internal Revenue Code and, for taxable years
17        ending on or after December 31, 2008, any amount
18        included in gross income under Section 87 of the
19        Internal Revenue Code; the provisions of this
20        subparagraph are exempt from the provisions of Section
21        250;
22            (N) An amount equal to all amounts included in
23        such total which are exempt from taxation by this
24        State either by reason of its statutes or Constitution
25        or by reason of the Constitution, treaties or statutes
26        of the United States; provided that, in the case of any

 

 

10300HB4951sam002- 1172 -LRB103 38094 HLH 74177 a

1        statute of this State that exempts income derived from
2        bonds or other obligations from the tax imposed under
3        this Act, the amount exempted shall be the interest
4        net of bond premium amortization;
5            (O) An amount equal to any contribution made to a
6        job training project established pursuant to the Tax
7        Increment Allocation Redevelopment Act;
8            (P) An amount equal to the amount of the deduction
9        used to compute the federal income tax credit for
10        restoration of substantial amounts held under claim of
11        right for the taxable year pursuant to Section 1341 of
12        the Internal Revenue Code or of any itemized deduction
13        taken from adjusted gross income in the computation of
14        taxable income for restoration of substantial amounts
15        held under claim of right for the taxable year;
16            (Q) An amount equal to any amounts included in
17        such total, received by the taxpayer as an
18        acceleration in the payment of life, endowment or
19        annuity benefits in advance of the time they would
20        otherwise be payable as an indemnity for a terminal
21        illness;
22            (R) An amount equal to the amount of any federal or
23        State bonus paid to veterans of the Persian Gulf War;
24            (S) An amount, to the extent included in adjusted
25        gross income, equal to the amount of a contribution
26        made in the taxable year on behalf of the taxpayer to a

 

 

10300HB4951sam002- 1173 -LRB103 38094 HLH 74177 a

1        medical care savings account established under the
2        Medical Care Savings Account Act or the Medical Care
3        Savings Account Act of 2000 to the extent the
4        contribution is accepted by the account administrator
5        as provided in that Act;
6            (T) An amount, to the extent included in adjusted
7        gross income, equal to the amount of interest earned
8        in the taxable year on a medical care savings account
9        established under the Medical Care Savings Account Act
10        or the Medical Care Savings Account Act of 2000 on
11        behalf of the taxpayer, other than interest added
12        pursuant to item (D-5) of this paragraph (2);
13            (U) For one taxable year beginning on or after
14        January 1, 1994, an amount equal to the total amount of
15        tax imposed and paid under subsections (a) and (b) of
16        Section 201 of this Act on grant amounts received by
17        the taxpayer under the Nursing Home Grant Assistance
18        Act during the taxpayer's taxable years 1992 and 1993;
19            (V) Beginning with tax years ending on or after
20        December 31, 1995 and ending with tax years ending on
21        or before December 31, 2004, an amount equal to the
22        amount paid by a taxpayer who is a self-employed
23        taxpayer, a partner of a partnership, or a shareholder
24        in a Subchapter S corporation for health insurance or
25        long-term care insurance for that taxpayer or that
26        taxpayer's spouse or dependents, to the extent that

 

 

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1        the amount paid for that health insurance or long-term
2        care insurance may be deducted under Section 213 of
3        the Internal Revenue Code, has not been deducted on
4        the federal income tax return of the taxpayer, and
5        does not exceed the taxable income attributable to
6        that taxpayer's income, self-employment income, or
7        Subchapter S corporation income; except that no
8        deduction shall be allowed under this item (V) if the
9        taxpayer is eligible to participate in any health
10        insurance or long-term care insurance plan of an
11        employer of the taxpayer or the taxpayer's spouse. The
12        amount of the health insurance and long-term care
13        insurance subtracted under this item (V) shall be
14        determined by multiplying total health insurance and
15        long-term care insurance premiums paid by the taxpayer
16        times a number that represents the fractional
17        percentage of eligible medical expenses under Section
18        213 of the Internal Revenue Code of 1986 not actually
19        deducted on the taxpayer's federal income tax return;
20            (W) For taxable years beginning on or after
21        January 1, 1998, all amounts included in the
22        taxpayer's federal gross income in the taxable year
23        from amounts converted from a regular IRA to a Roth
24        IRA. This paragraph is exempt from the provisions of
25        Section 250;
26            (X) For taxable year 1999 and thereafter, an

 

 

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1        amount equal to the amount of any (i) distributions,
2        to the extent includible in gross income for federal
3        income tax purposes, made to the taxpayer because of
4        his or her status as a victim of persecution for racial
5        or religious reasons by Nazi Germany or any other Axis
6        regime or as an heir of the victim and (ii) items of
7        income, to the extent includible in gross income for
8        federal income tax purposes, attributable to, derived
9        from or in any way related to assets stolen from,
10        hidden from, or otherwise lost to a victim of
11        persecution for racial or religious reasons by Nazi
12        Germany or any other Axis regime immediately prior to,
13        during, and immediately after World War II, including,
14        but not limited to, interest on the proceeds
15        receivable as insurance under policies issued to a
16        victim of persecution for racial or religious reasons
17        by Nazi Germany or any other Axis regime by European
18        insurance companies immediately prior to and during
19        World War II; provided, however, this subtraction from
20        federal adjusted gross income does not apply to assets
21        acquired with such assets or with the proceeds from
22        the sale of such assets; provided, further, this
23        paragraph shall only apply to a taxpayer who was the
24        first recipient of such assets after their recovery
25        and who is a victim of persecution for racial or
26        religious reasons by Nazi Germany or any other Axis

 

 

10300HB4951sam002- 1176 -LRB103 38094 HLH 74177 a

1        regime or as an heir of the victim. The amount of and
2        the eligibility for any public assistance, benefit, or
3        similar entitlement is not affected by the inclusion
4        of items (i) and (ii) of this paragraph in gross income
5        for federal income tax purposes. This paragraph is
6        exempt from the provisions of Section 250;
7            (Y) For taxable years beginning on or after
8        January 1, 2002 and ending on or before December 31,
9        2004, moneys contributed in the taxable year to a
10        College Savings Pool account under Section 16.5 of the
11        State Treasurer Act, except that amounts excluded from
12        gross income under Section 529(c)(3)(C)(i) of the
13        Internal Revenue Code shall not be considered moneys
14        contributed under this subparagraph (Y). For taxable
15        years beginning on or after January 1, 2005, a maximum
16        of $10,000 contributed in the taxable year to (i) a
17        College Savings Pool account under Section 16.5 of the
18        State Treasurer Act or (ii) the Illinois Prepaid
19        Tuition Trust Fund, except that amounts excluded from
20        gross income under Section 529(c)(3)(C)(i) of the
21        Internal Revenue Code shall not be considered moneys
22        contributed under this subparagraph (Y). For purposes
23        of this subparagraph, contributions made by an
24        employer on behalf of an employee, or matching
25        contributions made by an employee, shall be treated as
26        made by the employee. This subparagraph (Y) is exempt

 

 

10300HB4951sam002- 1177 -LRB103 38094 HLH 74177 a

1        from the provisions of Section 250;
2            (Z) For taxable years 2001 and thereafter, for the
3        taxable year in which the bonus depreciation deduction
4        is taken on the taxpayer's federal income tax return
5        under subsection (k) of Section 168 of the Internal
6        Revenue Code and for each applicable taxable year
7        thereafter, an amount equal to "x", where:
8                (1) "y" equals the amount of the depreciation
9            deduction taken for the taxable year on the
10            taxpayer's federal income tax return on property
11            for which the bonus depreciation deduction was
12            taken in any year under subsection (k) of Section
13            168 of the Internal Revenue Code, but not
14            including the bonus depreciation deduction;
15                (2) for taxable years ending on or before
16            December 31, 2005, "x" equals "y" multiplied by 30
17            and then divided by 70 (or "y" multiplied by
18            0.429); and
19                (3) for taxable years ending after December
20            31, 2005:
21                    (i) for property on which a bonus
22                depreciation deduction of 30% of the adjusted
23                basis was taken, "x" equals "y" multiplied by
24                30 and then divided by 70 (or "y" multiplied
25                by 0.429);
26                    (ii) for property on which a bonus

 

 

10300HB4951sam002- 1178 -LRB103 38094 HLH 74177 a

1                depreciation deduction of 50% of the adjusted
2                basis was taken, "x" equals "y" multiplied by
3                1.0;
4                    (iii) for property on which a bonus
5                depreciation deduction of 100% of the adjusted
6                basis was taken in a taxable year ending on or
7                after December 31, 2021, "x" equals the
8                depreciation deduction that would be allowed
9                on that property if the taxpayer had made the
10                election under Section 168(k)(7) of the
11                Internal Revenue Code to not claim bonus
12                depreciation on that property; and
13                    (iv) for property on which a bonus
14                depreciation deduction of a percentage other
15                than 30%, 50% or 100% of the adjusted basis
16                was taken in a taxable year ending on or after
17                December 31, 2021, "x" equals "y" multiplied
18                by 100 times the percentage bonus depreciation
19                on the property (that is, 100(bonus%)) and
20                then divided by 100 times 1 minus the
21                percentage bonus depreciation on the property
22                (that is, 100(1-bonus%)).
23            The aggregate amount deducted under this
24        subparagraph in all taxable years for any one piece of
25        property may not exceed the amount of the bonus
26        depreciation deduction taken on that property on the

 

 

10300HB4951sam002- 1179 -LRB103 38094 HLH 74177 a

1        taxpayer's federal income tax return under subsection
2        (k) of Section 168 of the Internal Revenue Code. This
3        subparagraph (Z) is exempt from the provisions of
4        Section 250;
5            (AA) If the taxpayer sells, transfers, abandons,
6        or otherwise disposes of property for which the
7        taxpayer was required in any taxable year to make an
8        addition modification under subparagraph (D-15), then
9        an amount equal to that addition modification.
10            If the taxpayer continues to own property through
11        the last day of the last tax year for which a
12        subtraction is allowed with respect to that property
13        under subparagraph (Z) and for which the taxpayer was
14        required in any taxable year to make an addition
15        modification under subparagraph (D-15), then an amount
16        equal to that addition modification.
17            The taxpayer is allowed to take the deduction
18        under this subparagraph only once with respect to any
19        one piece of property.
20            This subparagraph (AA) is exempt from the
21        provisions of Section 250;
22            (BB) Any amount included in adjusted gross income,
23        other than salary, received by a driver in a
24        ridesharing arrangement using a motor vehicle;
25            (CC) The amount of (i) any interest income (net of
26        the deductions allocable thereto) taken into account

 

 

10300HB4951sam002- 1180 -LRB103 38094 HLH 74177 a

1        for the taxable year with respect to a transaction
2        with a taxpayer that is required to make an addition
3        modification with respect to such transaction under
4        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
5        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
6        the amount of that addition modification, and (ii) any
7        income from intangible property (net of the deductions
8        allocable thereto) taken into account for the taxable
9        year with respect to a transaction with a taxpayer
10        that is required to make an addition modification with
11        respect to such transaction under Section
12        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
13        203(d)(2)(D-8), but not to exceed the amount of that
14        addition modification. This subparagraph (CC) is
15        exempt from the provisions of Section 250;
16            (DD) An amount equal to the interest income taken
17        into account for the taxable year (net of the
18        deductions allocable thereto) with respect to
19        transactions with (i) a foreign person who would be a
20        member of the taxpayer's unitary business group but
21        for the fact that the foreign person's business
22        activity outside the United States is 80% or more of
23        that person's total business activity and (ii) for
24        taxable years ending on or after December 31, 2008, to
25        a person who would be a member of the same unitary
26        business group but for the fact that the person is

 

 

10300HB4951sam002- 1181 -LRB103 38094 HLH 74177 a

1        prohibited under Section 1501(a)(27) from being
2        included in the unitary business group because he or
3        she is ordinarily required to apportion business
4        income under different subsections of Section 304, but
5        not to exceed the addition modification required to be
6        made for the same taxable year under Section
7        203(a)(2)(D-17) for interest paid, accrued, or
8        incurred, directly or indirectly, to the same person.
9        This subparagraph (DD) is exempt from the provisions
10        of Section 250;
11            (EE) An amount equal to the income from intangible
12        property taken into account for the taxable year (net
13        of the deductions allocable thereto) with respect to
14        transactions with (i) a foreign person who would be a
15        member of the taxpayer's unitary business group but
16        for the fact that the foreign person's business
17        activity outside the United States is 80% or more of
18        that person's total business activity and (ii) for
19        taxable years ending on or after December 31, 2008, to
20        a person who would be a member of the same unitary
21        business group but for the fact that the person is
22        prohibited under Section 1501(a)(27) from being
23        included in the unitary business group because he or
24        she is ordinarily required to apportion business
25        income under different subsections of Section 304, but
26        not to exceed the addition modification required to be

 

 

10300HB4951sam002- 1182 -LRB103 38094 HLH 74177 a

1        made for the same taxable year under Section
2        203(a)(2)(D-18) for intangible expenses and costs
3        paid, accrued, or incurred, directly or indirectly, to
4        the same foreign person. This subparagraph (EE) is
5        exempt from the provisions of Section 250;
6            (FF) An amount equal to any amount awarded to the
7        taxpayer during the taxable year by the Court of
8        Claims under subsection (c) of Section 8 of the Court
9        of Claims Act for time unjustly served in a State
10        prison. This subparagraph (FF) is exempt from the
11        provisions of Section 250;
12            (GG) For taxable years ending on or after December
13        31, 2011, in the case of a taxpayer who was required to
14        add back any insurance premiums under Section
15        203(a)(2)(D-19), such taxpayer may elect to subtract
16        that part of a reimbursement received from the
17        insurance company equal to the amount of the expense
18        or loss (including expenses incurred by the insurance
19        company) that would have been taken into account as a
20        deduction for federal income tax purposes if the
21        expense or loss had been uninsured. If a taxpayer
22        makes the election provided for by this subparagraph
23        (GG), the insurer to which the premiums were paid must
24        add back to income the amount subtracted by the
25        taxpayer pursuant to this subparagraph (GG). This
26        subparagraph (GG) is exempt from the provisions of

 

 

10300HB4951sam002- 1183 -LRB103 38094 HLH 74177 a

1        Section 250;
2            (HH) For taxable years beginning on or after
3        January 1, 2018 and prior to January 1, 2028, a maximum
4        of $10,000 contributed in the taxable year to a
5        qualified ABLE account under Section 16.6 of the State
6        Treasurer Act, except that amounts excluded from gross
7        income under Section 529(c)(3)(C)(i) or Section
8        529A(c)(1)(C) of the Internal Revenue Code shall not
9        be considered moneys contributed under this
10        subparagraph (HH). For purposes of this subparagraph
11        (HH), contributions made by an employer on behalf of
12        an employee, or matching contributions made by an
13        employee, shall be treated as made by the employee;
14            (II) For taxable years that begin on or after
15        January 1, 2021 and begin before January 1, 2026, the
16        amount that is included in the taxpayer's federal
17        adjusted gross income pursuant to Section 61 of the
18        Internal Revenue Code as discharge of indebtedness
19        attributable to student loan forgiveness and that is
20        not excluded from the taxpayer's federal adjusted
21        gross income pursuant to paragraph (5) of subsection
22        (f) of Section 108 of the Internal Revenue Code; and
23            (JJ) For taxable years beginning on or after
24        January 1, 2023, for any cannabis establishment
25        operating in this State and licensed under the
26        Cannabis Regulation and Tax Act or any cannabis

 

 

10300HB4951sam002- 1184 -LRB103 38094 HLH 74177 a

1        cultivation center or medical cannabis dispensing
2        organization operating in this State and licensed
3        under the Compassionate Use of Medical Cannabis
4        Program Act, an amount equal to the deductions that
5        were disallowed under Section 280E of the Internal
6        Revenue Code for the taxable year and that would not be
7        added back under this subsection. The provisions of
8        this subparagraph (JJ) are exempt from the provisions
9        of Section 250; and .
10            (KK) (JJ) To the extent includible in gross income
11        for federal income tax purposes, any amount awarded or
12        paid to the taxpayer as a result of a judgment or
13        settlement for fertility fraud as provided in Section
14        15 of the Illinois Fertility Fraud Act, donor
15        fertility fraud as provided in Section 20 of the
16        Illinois Fertility Fraud Act, or similar action in
17        another state.
 
18    (b) Corporations.
19        (1) In general. In the case of a corporation, base
20    income means an amount equal to the taxpayer's taxable
21    income for the taxable year as modified by paragraph (2).
22        (2) Modifications. The taxable income referred to in
23    paragraph (1) shall be modified by adding thereto the sum
24    of the following amounts:
25            (A) An amount equal to all amounts paid or accrued

 

 

10300HB4951sam002- 1185 -LRB103 38094 HLH 74177 a

1        to the taxpayer as interest and all distributions
2        received from regulated investment companies during
3        the taxable year to the extent excluded from gross
4        income in the computation of taxable income;
5            (B) An amount equal to the amount of tax imposed by
6        this Act to the extent deducted from gross income in
7        the computation of taxable income for the taxable
8        year;
9            (C) In the case of a regulated investment company,
10        an amount equal to the excess of (i) the net long-term
11        capital gain for the taxable year, over (ii) the
12        amount of the capital gain dividends designated as
13        such in accordance with Section 852(b)(3)(C) of the
14        Internal Revenue Code and any amount designated under
15        Section 852(b)(3)(D) of the Internal Revenue Code,
16        attributable to the taxable year (this amendatory Act
17        of 1995 (Public Act 89-89) is declarative of existing
18        law and is not a new enactment);
19            (D) The amount of any net operating loss deduction
20        taken in arriving at taxable income, other than a net
21        operating loss carried forward from a taxable year
22        ending prior to December 31, 1986;
23            (E) For taxable years in which a net operating
24        loss carryback or carryforward from a taxable year
25        ending prior to December 31, 1986 is an element of
26        taxable income under paragraph (1) of subsection (e)

 

 

10300HB4951sam002- 1186 -LRB103 38094 HLH 74177 a

1        or subparagraph (E) of paragraph (2) of subsection
2        (e), the amount by which addition modifications other
3        than those provided by this subparagraph (E) exceeded
4        subtraction modifications in such earlier taxable
5        year, with the following limitations applied in the
6        order that they are listed:
7                (i) the addition modification relating to the
8            net operating loss carried back or forward to the
9            taxable year from any taxable year ending prior to
10            December 31, 1986 shall be reduced by the amount
11            of addition modification under this subparagraph
12            (E) which related to that net operating loss and
13            which was taken into account in calculating the
14            base income of an earlier taxable year, and
15                (ii) the addition modification relating to the
16            net operating loss carried back or forward to the
17            taxable year from any taxable year ending prior to
18            December 31, 1986 shall not exceed the amount of
19            such carryback or carryforward;
20            For taxable years in which there is a net
21        operating loss carryback or carryforward from more
22        than one other taxable year ending prior to December
23        31, 1986, the addition modification provided in this
24        subparagraph (E) shall be the sum of the amounts
25        computed independently under the preceding provisions
26        of this subparagraph (E) for each such taxable year;

 

 

10300HB4951sam002- 1187 -LRB103 38094 HLH 74177 a

1            (E-5) For taxable years ending after December 31,
2        1997, an amount equal to any eligible remediation
3        costs that the corporation deducted in computing
4        adjusted gross income and for which the corporation
5        claims a credit under subsection (l) of Section 201;
6            (E-10) For taxable years 2001 and thereafter, an
7        amount equal to the bonus depreciation deduction taken
8        on the taxpayer's federal income tax return for the
9        taxable year under subsection (k) of Section 168 of
10        the Internal Revenue Code;
11            (E-11) If the taxpayer sells, transfers, abandons,
12        or otherwise disposes of property for which the
13        taxpayer was required in any taxable year to make an
14        addition modification under subparagraph (E-10), then
15        an amount equal to the aggregate amount of the
16        deductions taken in all taxable years under
17        subparagraph (T) with respect to that property.
18            If the taxpayer continues to own property through
19        the last day of the last tax year for which a
20        subtraction is allowed with respect to that property
21        under subparagraph (T) and for which the taxpayer was
22        allowed in any taxable year to make a subtraction
23        modification under subparagraph (T), then an amount
24        equal to that subtraction modification.
25            The taxpayer is required to make the addition
26        modification under this subparagraph only once with

 

 

10300HB4951sam002- 1188 -LRB103 38094 HLH 74177 a

1        respect to any one piece of property;
2            (E-12) An amount equal to the amount otherwise
3        allowed as a deduction in computing base income for
4        interest paid, accrued, or incurred, directly or
5        indirectly, (i) for taxable years ending on or after
6        December 31, 2004, to a foreign person who would be a
7        member of the same unitary business group but for the
8        fact the foreign person's business activity outside
9        the United States is 80% or more of the foreign
10        person's total business activity and (ii) for taxable
11        years ending on or after December 31, 2008, to a person
12        who would be a member of the same unitary business
13        group but for the fact that the person is prohibited
14        under Section 1501(a)(27) from being included in the
15        unitary business group because he or she is ordinarily
16        required to apportion business income under different
17        subsections of Section 304. The addition modification
18        required by this subparagraph shall be reduced to the
19        extent that dividends were included in base income of
20        the unitary group for the same taxable year and
21        received by the taxpayer or by a member of the
22        taxpayer's unitary business group (including amounts
23        included in gross income pursuant to Sections 951
24        through 964 of the Internal Revenue Code and amounts
25        included in gross income under Section 78 of the
26        Internal Revenue Code) with respect to the stock of

 

 

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1        the same person to whom the interest was paid,
2        accrued, or incurred.
3            This paragraph shall not apply to the following:
4                (i) an item of interest paid, accrued, or
5            incurred, directly or indirectly, to a person who
6            is subject in a foreign country or state, other
7            than a state which requires mandatory unitary
8            reporting, to a tax on or measured by net income
9            with respect to such interest; or
10                (ii) an item of interest paid, accrued, or
11            incurred, directly or indirectly, to a person if
12            the taxpayer can establish, based on a
13            preponderance of the evidence, both of the
14            following:
15                    (a) the person, during the same taxable
16                year, paid, accrued, or incurred, the interest
17                to a person that is not a related member, and
18                    (b) the transaction giving rise to the
19                interest expense between the taxpayer and the
20                person did not have as a principal purpose the
21                avoidance of Illinois income tax, and is paid
22                pursuant to a contract or agreement that
23                reflects an arm's-length interest rate and
24                terms; or
25                (iii) the taxpayer can establish, based on
26            clear and convincing evidence, that the interest

 

 

10300HB4951sam002- 1190 -LRB103 38094 HLH 74177 a

1            paid, accrued, or incurred relates to a contract
2            or agreement entered into at arm's-length rates
3            and terms and the principal purpose for the
4            payment is not federal or Illinois tax avoidance;
5            or
6                (iv) an item of interest paid, accrued, or
7            incurred, directly or indirectly, to a person if
8            the taxpayer establishes by clear and convincing
9            evidence that the adjustments are unreasonable; or
10            if the taxpayer and the Director agree in writing
11            to the application or use of an alternative method
12            of apportionment under Section 304(f).
13                Nothing in this subsection shall preclude the
14            Director from making any other adjustment
15            otherwise allowed under Section 404 of this Act
16            for any tax year beginning after the effective
17            date of this amendment provided such adjustment is
18            made pursuant to regulation adopted by the
19            Department and such regulations provide methods
20            and standards by which the Department will utilize
21            its authority under Section 404 of this Act;
22            (E-13) An amount equal to the amount of intangible
23        expenses and costs otherwise allowed as a deduction in
24        computing base income, and that were paid, accrued, or
25        incurred, directly or indirectly, (i) for taxable
26        years ending on or after December 31, 2004, to a

 

 

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1        foreign person who would be a member of the same
2        unitary business group but for the fact that the
3        foreign person's business activity outside the United
4        States is 80% or more of that person's total business
5        activity and (ii) for taxable years ending on or after
6        December 31, 2008, to a person who would be a member of
7        the same unitary business group but for the fact that
8        the person is prohibited under Section 1501(a)(27)
9        from being included in the unitary business group
10        because he or she is ordinarily required to apportion
11        business income under different subsections of Section
12        304. The addition modification required by this
13        subparagraph shall be reduced to the extent that
14        dividends were included in base income of the unitary
15        group for the same taxable year and received by the
16        taxpayer or by a member of the taxpayer's unitary
17        business group (including amounts included in gross
18        income pursuant to Sections 951 through 964 of the
19        Internal Revenue Code and amounts included in gross
20        income under Section 78 of the Internal Revenue Code)
21        with respect to the stock of the same person to whom
22        the intangible expenses and costs were directly or
23        indirectly paid, incurred, or accrued. The preceding
24        sentence shall not apply to the extent that the same
25        dividends caused a reduction to the addition
26        modification required under Section 203(b)(2)(E-12) of

 

 

10300HB4951sam002- 1192 -LRB103 38094 HLH 74177 a

1        this Act. As used in this subparagraph, the term
2        "intangible expenses and costs" includes (1) expenses,
3        losses, and costs for, or related to, the direct or
4        indirect acquisition, use, maintenance or management,
5        ownership, sale, exchange, or any other disposition of
6        intangible property; (2) losses incurred, directly or
7        indirectly, from factoring transactions or discounting
8        transactions; (3) royalty, patent, technical, and
9        copyright fees; (4) licensing fees; and (5) other
10        similar expenses and costs. For purposes of this
11        subparagraph, "intangible property" includes patents,
12        patent applications, trade names, trademarks, service
13        marks, copyrights, mask works, trade secrets, and
14        similar types of intangible assets.
15            This paragraph shall not apply to the following:
16                (i) any item of intangible expenses or costs
17            paid, accrued, or incurred, directly or
18            indirectly, from a transaction with a person who
19            is subject in a foreign country or state, other
20            than a state which requires mandatory unitary
21            reporting, to a tax on or measured by net income
22            with respect to such item; or
23                (ii) any item of intangible expense or cost
24            paid, accrued, or incurred, directly or
25            indirectly, if the taxpayer can establish, based
26            on a preponderance of the evidence, both of the

 

 

10300HB4951sam002- 1193 -LRB103 38094 HLH 74177 a

1            following:
2                    (a) the person during the same taxable
3                year paid, accrued, or incurred, the
4                intangible expense or cost to a person that is
5                not a related member, and
6                    (b) the transaction giving rise to the
7                intangible expense or cost between the
8                taxpayer and the person did not have as a
9                principal purpose the avoidance of Illinois
10                income tax, and is paid pursuant to a contract
11                or agreement that reflects arm's-length terms;
12                or
13                (iii) any item of intangible expense or cost
14            paid, accrued, or incurred, directly or
15            indirectly, from a transaction with a person if
16            the taxpayer establishes by clear and convincing
17            evidence, that the adjustments are unreasonable;
18            or if the taxpayer and the Director agree in
19            writing to the application or use of an
20            alternative method of apportionment under Section
21            304(f);
22                Nothing in this subsection shall preclude the
23            Director from making any other adjustment
24            otherwise allowed under Section 404 of this Act
25            for any tax year beginning after the effective
26            date of this amendment provided such adjustment is

 

 

10300HB4951sam002- 1194 -LRB103 38094 HLH 74177 a

1            made pursuant to regulation adopted by the
2            Department and such regulations provide methods
3            and standards by which the Department will utilize
4            its authority under Section 404 of this Act;
5            (E-14) For taxable years ending on or after
6        December 31, 2008, an amount equal to the amount of
7        insurance premium expenses and costs otherwise allowed
8        as a deduction in computing base income, and that were
9        paid, accrued, or incurred, directly or indirectly, to
10        a person who would be a member of the same unitary
11        business group but for the fact that the person is
12        prohibited under Section 1501(a)(27) from being
13        included in the unitary business group because he or
14        she is ordinarily required to apportion business
15        income under different subsections of Section 304. The
16        addition modification required by this subparagraph
17        shall be reduced to the extent that dividends were
18        included in base income of the unitary group for the
19        same taxable year and received by the taxpayer or by a
20        member of the taxpayer's unitary business group
21        (including amounts included in gross income under
22        Sections 951 through 964 of the Internal Revenue Code
23        and amounts included in gross income under Section 78
24        of the Internal Revenue Code) with respect to the
25        stock of the same person to whom the premiums and costs
26        were directly or indirectly paid, incurred, or

 

 

10300HB4951sam002- 1195 -LRB103 38094 HLH 74177 a

1        accrued. The preceding sentence does not apply to the
2        extent that the same dividends caused a reduction to
3        the addition modification required under Section
4        203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
5        Act;
6            (E-15) For taxable years beginning after December
7        31, 2008, any deduction for dividends paid by a
8        captive real estate investment trust that is allowed
9        to a real estate investment trust under Section
10        857(b)(2)(B) of the Internal Revenue Code for
11        dividends paid;
12            (E-16) An amount equal to the credit allowable to
13        the taxpayer under Section 218(a) of this Act,
14        determined without regard to Section 218(c) of this
15        Act;
16            (E-17) For taxable years ending on or after
17        December 31, 2017, an amount equal to the deduction
18        allowed under Section 199 of the Internal Revenue Code
19        for the taxable year;
20            (E-18) for taxable years beginning after December
21        31, 2018, an amount equal to the deduction allowed
22        under Section 250(a)(1)(A) of the Internal Revenue
23        Code for the taxable year;
24            (E-19) for taxable years ending on or after June
25        30, 2021, an amount equal to the deduction allowed
26        under Section 250(a)(1)(B)(i) of the Internal Revenue

 

 

10300HB4951sam002- 1196 -LRB103 38094 HLH 74177 a

1        Code for the taxable year;
2            (E-20) for taxable years ending on or after June
3        30, 2021, an amount equal to the deduction allowed
4        under Sections 243(e) and 245A(a) of the Internal
5        Revenue Code for the taxable year; .
6            (E-21) the amount that is claimed as a federal
7        deduction when computing the taxpayer's federal
8        taxable income for the taxable year and that is
9        attributable to an endowment gift for which the
10        taxpayer receives a credit under the Illinois Gives
11        Tax Credit Act;
12    and by deducting from the total so obtained the sum of the
13    following amounts:
14            (F) An amount equal to the amount of any tax
15        imposed by this Act which was refunded to the taxpayer
16        and included in such total for the taxable year;
17            (G) An amount equal to any amount included in such
18        total under Section 78 of the Internal Revenue Code;
19            (H) In the case of a regulated investment company,
20        an amount equal to the amount of exempt interest
21        dividends as defined in subsection (b)(5) of Section
22        852 of the Internal Revenue Code, paid to shareholders
23        for the taxable year;
24            (I) With the exception of any amounts subtracted
25        under subparagraph (J), an amount equal to the sum of
26        all amounts disallowed as deductions by (i) Sections

 

 

10300HB4951sam002- 1197 -LRB103 38094 HLH 74177 a

1        171(a)(2) and 265(a)(2) and amounts disallowed as
2        interest expense by Section 291(a)(3) of the Internal
3        Revenue Code, and all amounts of expenses allocable to
4        interest and disallowed as deductions by Section
5        265(a)(1) of the Internal Revenue Code; and (ii) for
6        taxable years ending on or after August 13, 1999,
7        Sections 171(a)(2), 265, 280C, 291(a)(3), and
8        832(b)(5)(B)(i) of the Internal Revenue Code, plus,
9        for tax years ending on or after December 31, 2011,
10        amounts disallowed as deductions by Section 45G(e)(3)
11        of the Internal Revenue Code and, for taxable years
12        ending on or after December 31, 2008, any amount
13        included in gross income under Section 87 of the
14        Internal Revenue Code and the policyholders' share of
15        tax-exempt interest of a life insurance company under
16        Section 807(a)(2)(B) of the Internal Revenue Code (in
17        the case of a life insurance company with gross income
18        from a decrease in reserves for the tax year) or
19        Section 807(b)(1)(B) of the Internal Revenue Code (in
20        the case of a life insurance company allowed a
21        deduction for an increase in reserves for the tax
22        year); the provisions of this subparagraph are exempt
23        from the provisions of Section 250;
24            (J) An amount equal to all amounts included in
25        such total which are exempt from taxation by this
26        State either by reason of its statutes or Constitution

 

 

10300HB4951sam002- 1198 -LRB103 38094 HLH 74177 a

1        or by reason of the Constitution, treaties or statutes
2        of the United States; provided that, in the case of any
3        statute of this State that exempts income derived from
4        bonds or other obligations from the tax imposed under
5        this Act, the amount exempted shall be the interest
6        net of bond premium amortization;
7            (K) An amount equal to those dividends included in
8        such total which were paid by a corporation which
9        conducts business operations in a River Edge
10        Redevelopment Zone or zones created under the River
11        Edge Redevelopment Zone Act and conducts substantially
12        all of its operations in a River Edge Redevelopment
13        Zone or zones. This subparagraph (K) is exempt from
14        the provisions of Section 250;
15            (L) An amount equal to those dividends included in
16        such total that were paid by a corporation that
17        conducts business operations in a federally designated
18        Foreign Trade Zone or Sub-Zone and that is designated
19        a High Impact Business located in Illinois; provided
20        that dividends eligible for the deduction provided in
21        subparagraph (K) of paragraph 2 of this subsection
22        shall not be eligible for the deduction provided under
23        this subparagraph (L);
24            (M) For any taxpayer that is a financial
25        organization within the meaning of Section 304(c) of
26        this Act, an amount included in such total as interest

 

 

10300HB4951sam002- 1199 -LRB103 38094 HLH 74177 a

1        income from a loan or loans made by such taxpayer to a
2        borrower, to the extent that such a loan is secured by
3        property which is eligible for the River Edge
4        Redevelopment Zone Investment Credit. To determine the
5        portion of a loan or loans that is secured by property
6        eligible for a Section 201(f) investment credit to the
7        borrower, the entire principal amount of the loan or
8        loans between the taxpayer and the borrower should be
9        divided into the basis of the Section 201(f)
10        investment credit property which secures the loan or
11        loans, using for this purpose the original basis of
12        such property on the date that it was placed in service
13        in the River Edge Redevelopment Zone. The subtraction
14        modification available to the taxpayer in any year
15        under this subsection shall be that portion of the
16        total interest paid by the borrower with respect to
17        such loan attributable to the eligible property as
18        calculated under the previous sentence. This
19        subparagraph (M) is exempt from the provisions of
20        Section 250;
21            (M-1) For any taxpayer that is a financial
22        organization within the meaning of Section 304(c) of
23        this Act, an amount included in such total as interest
24        income from a loan or loans made by such taxpayer to a
25        borrower, to the extent that such a loan is secured by
26        property which is eligible for the High Impact

 

 

10300HB4951sam002- 1200 -LRB103 38094 HLH 74177 a

1        Business Investment Credit. To determine the portion
2        of a loan or loans that is secured by property eligible
3        for a Section 201(h) investment credit to the
4        borrower, the entire principal amount of the loan or
5        loans between the taxpayer and the borrower should be
6        divided into the basis of the Section 201(h)
7        investment credit property which secures the loan or
8        loans, using for this purpose the original basis of
9        such property on the date that it was placed in service
10        in a federally designated Foreign Trade Zone or
11        Sub-Zone located in Illinois. No taxpayer that is
12        eligible for the deduction provided in subparagraph
13        (M) of paragraph (2) of this subsection shall be
14        eligible for the deduction provided under this
15        subparagraph (M-1). The subtraction modification
16        available to taxpayers in any year under this
17        subsection shall be that portion of the total interest
18        paid by the borrower with respect to such loan
19        attributable to the eligible property as calculated
20        under the previous sentence;
21            (N) Two times any contribution made during the
22        taxable year to a designated zone organization to the
23        extent that the contribution (i) qualifies as a
24        charitable contribution under subsection (c) of
25        Section 170 of the Internal Revenue Code and (ii)
26        must, by its terms, be used for a project approved by

 

 

10300HB4951sam002- 1201 -LRB103 38094 HLH 74177 a

1        the Department of Commerce and Economic Opportunity
2        under Section 11 of the Illinois Enterprise Zone Act
3        or under Section 10-10 of the River Edge Redevelopment
4        Zone Act. This subparagraph (N) is exempt from the
5        provisions of Section 250;
6            (O) An amount equal to: (i) 85% for taxable years
7        ending on or before December 31, 1992, or, a
8        percentage equal to the percentage allowable under
9        Section 243(a)(1) of the Internal Revenue Code of 1986
10        for taxable years ending after December 31, 1992, of
11        the amount by which dividends included in taxable
12        income and received from a corporation that is not
13        created or organized under the laws of the United
14        States or any state or political subdivision thereof,
15        including, for taxable years ending on or after
16        December 31, 1988, dividends received or deemed
17        received or paid or deemed paid under Sections 951
18        through 965 of the Internal Revenue Code, exceed the
19        amount of the modification provided under subparagraph
20        (G) of paragraph (2) of this subsection (b) which is
21        related to such dividends, and including, for taxable
22        years ending on or after December 31, 2008, dividends
23        received from a captive real estate investment trust;
24        plus (ii) 100% of the amount by which dividends,
25        included in taxable income and received, including,
26        for taxable years ending on or after December 31,

 

 

10300HB4951sam002- 1202 -LRB103 38094 HLH 74177 a

1        1988, dividends received or deemed received or paid or
2        deemed paid under Sections 951 through 964 of the
3        Internal Revenue Code and including, for taxable years
4        ending on or after December 31, 2008, dividends
5        received from a captive real estate investment trust,
6        from any such corporation specified in clause (i) that
7        would but for the provisions of Section 1504(b)(3) of
8        the Internal Revenue Code be treated as a member of the
9        affiliated group which includes the dividend
10        recipient, exceed the amount of the modification
11        provided under subparagraph (G) of paragraph (2) of
12        this subsection (b) which is related to such
13        dividends. For taxable years ending on or after June
14        30, 2021, (i) for purposes of this subparagraph, the
15        term "dividend" does not include any amount treated as
16        a dividend under Section 1248 of the Internal Revenue
17        Code, and (ii) this subparagraph shall not apply to
18        dividends for which a deduction is allowed under
19        Section 245(a) of the Internal Revenue Code. This
20        subparagraph (O) is exempt from the provisions of
21        Section 250 of this Act;
22            (P) An amount equal to any contribution made to a
23        job training project established pursuant to the Tax
24        Increment Allocation Redevelopment Act;
25            (Q) An amount equal to the amount of the deduction
26        used to compute the federal income tax credit for

 

 

10300HB4951sam002- 1203 -LRB103 38094 HLH 74177 a

1        restoration of substantial amounts held under claim of
2        right for the taxable year pursuant to Section 1341 of
3        the Internal Revenue Code;
4            (R) On and after July 20, 1999, in the case of an
5        attorney-in-fact with respect to whom an interinsurer
6        or a reciprocal insurer has made the election under
7        Section 835 of the Internal Revenue Code, 26 U.S.C.
8        835, an amount equal to the excess, if any, of the
9        amounts paid or incurred by that interinsurer or
10        reciprocal insurer in the taxable year to the
11        attorney-in-fact over the deduction allowed to that
12        interinsurer or reciprocal insurer with respect to the
13        attorney-in-fact under Section 835(b) of the Internal
14        Revenue Code for the taxable year; the provisions of
15        this subparagraph are exempt from the provisions of
16        Section 250;
17            (S) For taxable years ending on or after December
18        31, 1997, in the case of a Subchapter S corporation, an
19        amount equal to all amounts of income allocable to a
20        shareholder subject to the Personal Property Tax
21        Replacement Income Tax imposed by subsections (c) and
22        (d) of Section 201 of this Act, including amounts
23        allocable to organizations exempt from federal income
24        tax by reason of Section 501(a) of the Internal
25        Revenue Code. This subparagraph (S) is exempt from the
26        provisions of Section 250;

 

 

10300HB4951sam002- 1204 -LRB103 38094 HLH 74177 a

1            (T) For taxable years 2001 and thereafter, for the
2        taxable year in which the bonus depreciation deduction
3        is taken on the taxpayer's federal income tax return
4        under subsection (k) of Section 168 of the Internal
5        Revenue Code and for each applicable taxable year
6        thereafter, an amount equal to "x", where:
7                (1) "y" equals the amount of the depreciation
8            deduction taken for the taxable year on the
9            taxpayer's federal income tax return on property
10            for which the bonus depreciation deduction was
11            taken in any year under subsection (k) of Section
12            168 of the Internal Revenue Code, but not
13            including the bonus depreciation deduction;
14                (2) for taxable years ending on or before
15            December 31, 2005, "x" equals "y" multiplied by 30
16            and then divided by 70 (or "y" multiplied by
17            0.429); and
18                (3) for taxable years ending after December
19            31, 2005:
20                    (i) for property on which a bonus
21                depreciation deduction of 30% of the adjusted
22                basis was taken, "x" equals "y" multiplied by
23                30 and then divided by 70 (or "y" multiplied
24                by 0.429);
25                    (ii) for property on which a bonus
26                depreciation deduction of 50% of the adjusted

 

 

10300HB4951sam002- 1205 -LRB103 38094 HLH 74177 a

1                basis was taken, "x" equals "y" multiplied by
2                1.0;
3                    (iii) for property on which a bonus
4                depreciation deduction of 100% of the adjusted
5                basis was taken in a taxable year ending on or
6                after December 31, 2021, "x" equals the
7                depreciation deduction that would be allowed
8                on that property if the taxpayer had made the
9                election under Section 168(k)(7) of the
10                Internal Revenue Code to not claim bonus
11                depreciation on that property; and
12                    (iv) for property on which a bonus
13                depreciation deduction of a percentage other
14                than 30%, 50% or 100% of the adjusted basis
15                was taken in a taxable year ending on or after
16                December 31, 2021, "x" equals "y" multiplied
17                by 100 times the percentage bonus depreciation
18                on the property (that is, 100(bonus%)) and
19                then divided by 100 times 1 minus the
20                percentage bonus depreciation on the property
21                (that is, 100(1-bonus%)).
22            The aggregate amount deducted under this
23        subparagraph in all taxable years for any one piece of
24        property may not exceed the amount of the bonus
25        depreciation deduction taken on that property on the
26        taxpayer's federal income tax return under subsection

 

 

10300HB4951sam002- 1206 -LRB103 38094 HLH 74177 a

1        (k) of Section 168 of the Internal Revenue Code. This
2        subparagraph (T) is exempt from the provisions of
3        Section 250;
4            (U) If the taxpayer sells, transfers, abandons, or
5        otherwise disposes of property for which the taxpayer
6        was required in any taxable year to make an addition
7        modification under subparagraph (E-10), then an amount
8        equal to that addition modification.
9            If the taxpayer continues to own property through
10        the last day of the last tax year for which a
11        subtraction is allowed with respect to that property
12        under subparagraph (T) and for which the taxpayer was
13        required in any taxable year to make an addition
14        modification under subparagraph (E-10), then an amount
15        equal to that addition modification.
16            The taxpayer is allowed to take the deduction
17        under this subparagraph only once with respect to any
18        one piece of property.
19            This subparagraph (U) is exempt from the
20        provisions of Section 250;
21            (V) The amount of: (i) any interest income (net of
22        the deductions allocable thereto) taken into account
23        for the taxable year with respect to a transaction
24        with a taxpayer that is required to make an addition
25        modification with respect to such transaction under
26        Section 203(a)(2)(D-17), 203(b)(2)(E-12),

 

 

10300HB4951sam002- 1207 -LRB103 38094 HLH 74177 a

1        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
2        the amount of such addition modification, (ii) any
3        income from intangible property (net of the deductions
4        allocable thereto) taken into account for the taxable
5        year with respect to a transaction with a taxpayer
6        that is required to make an addition modification with
7        respect to such transaction under Section
8        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
9        203(d)(2)(D-8), but not to exceed the amount of such
10        addition modification, and (iii) any insurance premium
11        income (net of deductions allocable thereto) taken
12        into account for the taxable year with respect to a
13        transaction with a taxpayer that is required to make
14        an addition modification with respect to such
15        transaction under Section 203(a)(2)(D-19), Section
16        203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
17        203(d)(2)(D-9), but not to exceed the amount of that
18        addition modification. This subparagraph (V) is exempt
19        from the provisions of Section 250;
20            (W) An amount equal to the interest income taken
21        into account for the taxable year (net of the
22        deductions allocable thereto) with respect to
23        transactions with (i) a foreign person who would be a
24        member of the taxpayer's unitary business group but
25        for the fact that the foreign person's business
26        activity outside the United States is 80% or more of

 

 

10300HB4951sam002- 1208 -LRB103 38094 HLH 74177 a

1        that person's total business activity and (ii) for
2        taxable years ending on or after December 31, 2008, to
3        a person who would be a member of the same unitary
4        business group but for the fact that the person is
5        prohibited under Section 1501(a)(27) from being
6        included in the unitary business group because he or
7        she is ordinarily required to apportion business
8        income under different subsections of Section 304, but
9        not to exceed the addition modification required to be
10        made for the same taxable year under Section
11        203(b)(2)(E-12) for interest paid, accrued, or
12        incurred, directly or indirectly, to the same person.
13        This subparagraph (W) is exempt from the provisions of
14        Section 250;
15            (X) An amount equal to the income from intangible
16        property taken into account for the taxable year (net
17        of the deductions allocable thereto) with respect to
18        transactions with (i) a foreign person who would be a
19        member of the taxpayer's unitary business group but
20        for the fact that the foreign person's business
21        activity outside the United States is 80% or more of
22        that person's total business activity and (ii) for
23        taxable years ending on or after December 31, 2008, to
24        a person who would be a member of the same unitary
25        business group but for the fact that the person is
26        prohibited under Section 1501(a)(27) from being

 

 

10300HB4951sam002- 1209 -LRB103 38094 HLH 74177 a

1        included in the unitary business group because he or
2        she is ordinarily required to apportion business
3        income under different subsections of Section 304, but
4        not to exceed the addition modification required to be
5        made for the same taxable year under Section
6        203(b)(2)(E-13) for intangible expenses and costs
7        paid, accrued, or incurred, directly or indirectly, to
8        the same foreign person. This subparagraph (X) is
9        exempt from the provisions of Section 250;
10            (Y) For taxable years ending on or after December
11        31, 2011, in the case of a taxpayer who was required to
12        add back any insurance premiums under Section
13        203(b)(2)(E-14), such taxpayer may elect to subtract
14        that part of a reimbursement received from the
15        insurance company equal to the amount of the expense
16        or loss (including expenses incurred by the insurance
17        company) that would have been taken into account as a
18        deduction for federal income tax purposes if the
19        expense or loss had been uninsured. If a taxpayer
20        makes the election provided for by this subparagraph
21        (Y), the insurer to which the premiums were paid must
22        add back to income the amount subtracted by the
23        taxpayer pursuant to this subparagraph (Y). This
24        subparagraph (Y) is exempt from the provisions of
25        Section 250;
26            (Z) The difference between the nondeductible

 

 

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1        controlled foreign corporation dividends under Section
2        965(e)(3) of the Internal Revenue Code over the
3        taxable income of the taxpayer, computed without
4        regard to Section 965(e)(2)(A) of the Internal Revenue
5        Code, and without regard to any net operating loss
6        deduction. This subparagraph (Z) is exempt from the
7        provisions of Section 250; and
8            (AA) For taxable years beginning on or after
9        January 1, 2023, for any cannabis establishment
10        operating in this State and licensed under the
11        Cannabis Regulation and Tax Act or any cannabis
12        cultivation center or medical cannabis dispensing
13        organization operating in this State and licensed
14        under the Compassionate Use of Medical Cannabis
15        Program Act, an amount equal to the deductions that
16        were disallowed under Section 280E of the Internal
17        Revenue Code for the taxable year and that would not be
18        added back under this subsection. The provisions of
19        this subparagraph (AA) are exempt from the provisions
20        of Section 250.
21        (3) Special rule. For purposes of paragraph (2)(A),
22    "gross income" in the case of a life insurance company,
23    for tax years ending on and after December 31, 1994, and
24    prior to December 31, 2011, shall mean the gross
25    investment income for the taxable year and, for tax years
26    ending on or after December 31, 2011, shall mean all

 

 

10300HB4951sam002- 1211 -LRB103 38094 HLH 74177 a

1    amounts included in life insurance gross income under
2    Section 803(a)(3) of the Internal Revenue Code.
 
3    (c) Trusts and estates.
4        (1) In general. In the case of a trust or estate, base
5    income means an amount equal to the taxpayer's taxable
6    income for the taxable year as modified by paragraph (2).
7        (2) Modifications. Subject to the provisions of
8    paragraph (3), the taxable income referred to in paragraph
9    (1) shall be modified by adding thereto the sum of the
10    following amounts:
11            (A) An amount equal to all amounts paid or accrued
12        to the taxpayer as interest or dividends during the
13        taxable year to the extent excluded from gross income
14        in the computation of taxable income;
15            (B) In the case of (i) an estate, $600; (ii) a
16        trust which, under its governing instrument, is
17        required to distribute all of its income currently,
18        $300; and (iii) any other trust, $100, but in each such
19        case, only to the extent such amount was deducted in
20        the computation of taxable income;
21            (C) An amount equal to the amount of tax imposed by
22        this Act to the extent deducted from gross income in
23        the computation of taxable income for the taxable
24        year;
25            (D) The amount of any net operating loss deduction

 

 

10300HB4951sam002- 1212 -LRB103 38094 HLH 74177 a

1        taken in arriving at taxable income, other than a net
2        operating loss carried forward from a taxable year
3        ending prior to December 31, 1986;
4            (E) For taxable years in which a net operating
5        loss carryback or carryforward from a taxable year
6        ending prior to December 31, 1986 is an element of
7        taxable income under paragraph (1) of subsection (e)
8        or subparagraph (E) of paragraph (2) of subsection
9        (e), the amount by which addition modifications other
10        than those provided by this subparagraph (E) exceeded
11        subtraction modifications in such taxable year, with
12        the following limitations applied in the order that
13        they are listed:
14                (i) the addition modification relating to the
15            net operating loss carried back or forward to the
16            taxable year from any taxable year ending prior to
17            December 31, 1986 shall be reduced by the amount
18            of addition modification under this subparagraph
19            (E) which related to that net operating loss and
20            which was taken into account in calculating the
21            base income of an earlier taxable year, and
22                (ii) the addition modification relating to the
23            net operating loss carried back or forward to the
24            taxable year from any taxable year ending prior to
25            December 31, 1986 shall not exceed the amount of
26            such carryback or carryforward;

 

 

10300HB4951sam002- 1213 -LRB103 38094 HLH 74177 a

1            For taxable years in which there is a net
2        operating loss carryback or carryforward from more
3        than one other taxable year ending prior to December
4        31, 1986, the addition modification provided in this
5        subparagraph (E) shall be the sum of the amounts
6        computed independently under the preceding provisions
7        of this subparagraph (E) for each such taxable year;
8            (F) For taxable years ending on or after January
9        1, 1989, an amount equal to the tax deducted pursuant
10        to Section 164 of the Internal Revenue Code if the
11        trust or estate is claiming the same tax for purposes
12        of the Illinois foreign tax credit under Section 601
13        of this Act;
14            (G) An amount equal to the amount of the capital
15        gain deduction allowable under the Internal Revenue
16        Code, to the extent deducted from gross income in the
17        computation of taxable income;
18            (G-5) For taxable years ending after December 31,
19        1997, an amount equal to any eligible remediation
20        costs that the trust or estate deducted in computing
21        adjusted gross income and for which the trust or
22        estate claims a credit under subsection (l) of Section
23        201;
24            (G-10) For taxable years 2001 and thereafter, an
25        amount equal to the bonus depreciation deduction taken
26        on the taxpayer's federal income tax return for the

 

 

10300HB4951sam002- 1214 -LRB103 38094 HLH 74177 a

1        taxable year under subsection (k) of Section 168 of
2        the Internal Revenue Code; and
3            (G-11) If the taxpayer sells, transfers, abandons,
4        or otherwise disposes of property for which the
5        taxpayer was required in any taxable year to make an
6        addition modification under subparagraph (G-10), then
7        an amount equal to the aggregate amount of the
8        deductions taken in all taxable years under
9        subparagraph (R) with respect to that property.
10            If the taxpayer continues to own property through
11        the last day of the last tax year for which a
12        subtraction is allowed with respect to that property
13        under subparagraph (R) and for which the taxpayer was
14        allowed in any taxable year to make a subtraction
15        modification under subparagraph (R), then an amount
16        equal to that subtraction modification.
17            The taxpayer is required to make the addition
18        modification under this subparagraph only once with
19        respect to any one piece of property;
20            (G-12) An amount equal to the amount otherwise
21        allowed as a deduction in computing base income for
22        interest paid, accrued, or incurred, directly or
23        indirectly, (i) for taxable years ending on or after
24        December 31, 2004, to a foreign person who would be a
25        member of the same unitary business group but for the
26        fact that the foreign person's business activity

 

 

10300HB4951sam002- 1215 -LRB103 38094 HLH 74177 a

1        outside the United States is 80% or more of the foreign
2        person's total business activity and (ii) for taxable
3        years ending on or after December 31, 2008, to a person
4        who would be a member of the same unitary business
5        group but for the fact that the person is prohibited
6        under Section 1501(a)(27) from being included in the
7        unitary business group because he or she is ordinarily
8        required to apportion business income under different
9        subsections of Section 304. The addition modification
10        required by this subparagraph shall be reduced to the
11        extent that dividends were included in base income of
12        the unitary group for the same taxable year and
13        received by the taxpayer or by a member of the
14        taxpayer's unitary business group (including amounts
15        included in gross income pursuant to Sections 951
16        through 964 of the Internal Revenue Code and amounts
17        included in gross income under Section 78 of the
18        Internal Revenue Code) with respect to the stock of
19        the same person to whom the interest was paid,
20        accrued, or incurred.
21            This paragraph shall not apply to the following:
22                (i) an item of interest paid, accrued, or
23            incurred, directly or indirectly, to a person who
24            is subject in a foreign country or state, other
25            than a state which requires mandatory unitary
26            reporting, to a tax on or measured by net income

 

 

10300HB4951sam002- 1216 -LRB103 38094 HLH 74177 a

1            with respect to such interest; or
2                (ii) an item of interest paid, accrued, or
3            incurred, directly or indirectly, to a person if
4            the taxpayer can establish, based on a
5            preponderance of the evidence, both of the
6            following:
7                    (a) the person, during the same taxable
8                year, paid, accrued, or incurred, the interest
9                to a person that is not a related member, and
10                    (b) the transaction giving rise to the
11                interest expense between the taxpayer and the
12                person did not have as a principal purpose the
13                avoidance of Illinois income tax, and is paid
14                pursuant to a contract or agreement that
15                reflects an arm's-length interest rate and
16                terms; or
17                (iii) the taxpayer can establish, based on
18            clear and convincing evidence, that the interest
19            paid, accrued, or incurred relates to a contract
20            or agreement entered into at arm's-length rates
21            and terms and the principal purpose for the
22            payment is not federal or Illinois tax avoidance;
23            or
24                (iv) an item of interest paid, accrued, or
25            incurred, directly or indirectly, to a person if
26            the taxpayer establishes by clear and convincing

 

 

10300HB4951sam002- 1217 -LRB103 38094 HLH 74177 a

1            evidence that the adjustments are unreasonable; or
2            if the taxpayer and the Director agree in writing
3            to the application or use of an alternative method
4            of apportionment under Section 304(f).
5                Nothing in this subsection shall preclude the
6            Director from making any other adjustment
7            otherwise allowed under Section 404 of this Act
8            for any tax year beginning after the effective
9            date of this amendment provided such adjustment is
10            made pursuant to regulation adopted by the
11            Department and such regulations provide methods
12            and standards by which the Department will utilize
13            its authority under Section 404 of this Act;
14            (G-13) An amount equal to the amount of intangible
15        expenses and costs otherwise allowed as a deduction in
16        computing base income, and that were paid, accrued, or
17        incurred, directly or indirectly, (i) for taxable
18        years ending on or after December 31, 2004, to a
19        foreign person who would be a member of the same
20        unitary business group but for the fact that the
21        foreign person's business activity outside the United
22        States is 80% or more of that person's total business
23        activity and (ii) for taxable years ending on or after
24        December 31, 2008, to a person who would be a member of
25        the same unitary business group but for the fact that
26        the person is prohibited under Section 1501(a)(27)

 

 

10300HB4951sam002- 1218 -LRB103 38094 HLH 74177 a

1        from being included in the unitary business group
2        because he or she is ordinarily required to apportion
3        business income under different subsections of Section
4        304. The addition modification required by this
5        subparagraph shall be reduced to the extent that
6        dividends were included in base income of the unitary
7        group for the same taxable year and received by the
8        taxpayer or by a member of the taxpayer's unitary
9        business group (including amounts included in gross
10        income pursuant to Sections 951 through 964 of the
11        Internal Revenue Code and amounts included in gross
12        income under Section 78 of the Internal Revenue Code)
13        with respect to the stock of the same person to whom
14        the intangible expenses and costs were directly or
15        indirectly paid, incurred, or accrued. The preceding
16        sentence shall not apply to the extent that the same
17        dividends caused a reduction to the addition
18        modification required under Section 203(c)(2)(G-12) of
19        this Act. As used in this subparagraph, the term
20        "intangible expenses and costs" includes: (1)
21        expenses, losses, and costs for or related to the
22        direct or indirect acquisition, use, maintenance or
23        management, ownership, sale, exchange, or any other
24        disposition of intangible property; (2) losses
25        incurred, directly or indirectly, from factoring
26        transactions or discounting transactions; (3) royalty,

 

 

10300HB4951sam002- 1219 -LRB103 38094 HLH 74177 a

1        patent, technical, and copyright fees; (4) licensing
2        fees; and (5) other similar expenses and costs. For
3        purposes of this subparagraph, "intangible property"
4        includes patents, patent applications, trade names,
5        trademarks, service marks, copyrights, mask works,
6        trade secrets, and similar types of intangible assets.
7            This paragraph shall not apply to the following:
8                (i) any item of intangible expenses or costs
9            paid, accrued, or incurred, directly or
10            indirectly, from a transaction with a person who
11            is subject in a foreign country or state, other
12            than a state which requires mandatory unitary
13            reporting, to a tax on or measured by net income
14            with respect to such item; or
15                (ii) any item of intangible expense or cost
16            paid, accrued, or incurred, directly or
17            indirectly, if the taxpayer can establish, based
18            on a preponderance of the evidence, both of the
19            following:
20                    (a) the person during the same taxable
21                year paid, accrued, or incurred, the
22                intangible expense or cost to a person that is
23                not a related member, and
24                    (b) the transaction giving rise to the
25                intangible expense or cost between the
26                taxpayer and the person did not have as a

 

 

10300HB4951sam002- 1220 -LRB103 38094 HLH 74177 a

1                principal purpose the avoidance of Illinois
2                income tax, and is paid pursuant to a contract
3                or agreement that reflects arm's-length terms;
4                or
5                (iii) any item of intangible expense or cost
6            paid, accrued, or incurred, directly or
7            indirectly, from a transaction with a person if
8            the taxpayer establishes by clear and convincing
9            evidence, that the adjustments are unreasonable;
10            or if the taxpayer and the Director agree in
11            writing to the application or use of an
12            alternative method of apportionment under Section
13            304(f);
14                Nothing in this subsection shall preclude the
15            Director from making any other adjustment
16            otherwise allowed under Section 404 of this Act
17            for any tax year beginning after the effective
18            date of this amendment provided such adjustment is
19            made pursuant to regulation adopted by the
20            Department and such regulations provide methods
21            and standards by which the Department will utilize
22            its authority under Section 404 of this Act;
23            (G-14) For taxable years ending on or after
24        December 31, 2008, an amount equal to the amount of
25        insurance premium expenses and costs otherwise allowed
26        as a deduction in computing base income, and that were

 

 

10300HB4951sam002- 1221 -LRB103 38094 HLH 74177 a

1        paid, accrued, or incurred, directly or indirectly, to
2        a person who would be a member of the same unitary
3        business group but for the fact that the person is
4        prohibited under Section 1501(a)(27) from being
5        included in the unitary business group because he or
6        she is ordinarily required to apportion business
7        income under different subsections of Section 304. The
8        addition modification required by this subparagraph
9        shall be reduced to the extent that dividends were
10        included in base income of the unitary group for the
11        same taxable year and received by the taxpayer or by a
12        member of the taxpayer's unitary business group
13        (including amounts included in gross income under
14        Sections 951 through 964 of the Internal Revenue Code
15        and amounts included in gross income under Section 78
16        of the Internal Revenue Code) with respect to the
17        stock of the same person to whom the premiums and costs
18        were directly or indirectly paid, incurred, or
19        accrued. The preceding sentence does not apply to the
20        extent that the same dividends caused a reduction to
21        the addition modification required under Section
22        203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
23        Act;
24            (G-15) An amount equal to the credit allowable to
25        the taxpayer under Section 218(a) of this Act,
26        determined without regard to Section 218(c) of this

 

 

10300HB4951sam002- 1222 -LRB103 38094 HLH 74177 a

1        Act;
2            (G-16) For taxable years ending on or after
3        December 31, 2017, an amount equal to the deduction
4        allowed under Section 199 of the Internal Revenue Code
5        for the taxable year;
6            (G-17) the amount that is claimed as a federal
7        deduction when computing the taxpayer's federal
8        taxable income for the taxable year and that is
9        attributable to an endowment gift for which the
10        taxpayer receives a credit under the Illinois Gives
11        Tax Credit Act;
12    and by deducting from the total so obtained the sum of the
13    following amounts:
14            (H) An amount equal to all amounts included in
15        such total pursuant to the provisions of Sections
16        402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
17        of the Internal Revenue Code or included in such total
18        as distributions under the provisions of any
19        retirement or disability plan for employees of any
20        governmental agency or unit, or retirement payments to
21        retired partners, which payments are excluded in
22        computing net earnings from self employment by Section
23        1402 of the Internal Revenue Code and regulations
24        adopted pursuant thereto;
25            (I) The valuation limitation amount;
26            (J) An amount equal to the amount of any tax

 

 

10300HB4951sam002- 1223 -LRB103 38094 HLH 74177 a

1        imposed by this Act which was refunded to the taxpayer
2        and included in such total for the taxable year;
3            (K) An amount equal to all amounts included in
4        taxable income as modified by subparagraphs (A), (B),
5        (C), (D), (E), (F) and (G) which are exempt from
6        taxation by this State either by reason of its
7        statutes or Constitution or by reason of the
8        Constitution, treaties or statutes of the United
9        States; provided that, in the case of any statute of
10        this State that exempts income derived from bonds or
11        other obligations from the tax imposed under this Act,
12        the amount exempted shall be the interest net of bond
13        premium amortization;
14            (L) With the exception of any amounts subtracted
15        under subparagraph (K), an amount equal to the sum of
16        all amounts disallowed as deductions by (i) Sections
17        171(a)(2) and 265(a)(2) of the Internal Revenue Code,
18        and all amounts of expenses allocable to interest and
19        disallowed as deductions by Section 265(a)(1) of the
20        Internal Revenue Code; and (ii) for taxable years
21        ending on or after August 13, 1999, Sections
22        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
23        Internal Revenue Code, plus, (iii) for taxable years
24        ending on or after December 31, 2011, Section
25        45G(e)(3) of the Internal Revenue Code and, for
26        taxable years ending on or after December 31, 2008,

 

 

10300HB4951sam002- 1224 -LRB103 38094 HLH 74177 a

1        any amount included in gross income under Section 87
2        of the Internal Revenue Code; the provisions of this
3        subparagraph are exempt from the provisions of Section
4        250;
5            (M) An amount equal to those dividends included in
6        such total which were paid by a corporation which
7        conducts business operations in a River Edge
8        Redevelopment Zone or zones created under the River
9        Edge Redevelopment Zone Act and conducts substantially
10        all of its operations in a River Edge Redevelopment
11        Zone or zones. This subparagraph (M) is exempt from
12        the provisions of Section 250;
13            (N) An amount equal to any contribution made to a
14        job training project established pursuant to the Tax
15        Increment Allocation Redevelopment Act;
16            (O) An amount equal to those dividends included in
17        such total that were paid by a corporation that
18        conducts business operations in a federally designated
19        Foreign Trade Zone or Sub-Zone and that is designated
20        a High Impact Business located in Illinois; provided
21        that dividends eligible for the deduction provided in
22        subparagraph (M) of paragraph (2) of this subsection
23        shall not be eligible for the deduction provided under
24        this subparagraph (O);
25            (P) An amount equal to the amount of the deduction
26        used to compute the federal income tax credit for

 

 

10300HB4951sam002- 1225 -LRB103 38094 HLH 74177 a

1        restoration of substantial amounts held under claim of
2        right for the taxable year pursuant to Section 1341 of
3        the Internal Revenue Code;
4            (Q) For taxable year 1999 and thereafter, an
5        amount equal to the amount of any (i) distributions,
6        to the extent includible in gross income for federal
7        income tax purposes, made to the taxpayer because of
8        his or her status as a victim of persecution for racial
9        or religious reasons by Nazi Germany or any other Axis
10        regime or as an heir of the victim and (ii) items of
11        income, to the extent includible in gross income for
12        federal income tax purposes, attributable to, derived
13        from or in any way related to assets stolen from,
14        hidden from, or otherwise lost to a victim of
15        persecution for racial or religious reasons by Nazi
16        Germany or any other Axis regime immediately prior to,
17        during, and immediately after World War II, including,
18        but not limited to, interest on the proceeds
19        receivable as insurance under policies issued to a
20        victim of persecution for racial or religious reasons
21        by Nazi Germany or any other Axis regime by European
22        insurance companies immediately prior to and during
23        World War II; provided, however, this subtraction from
24        federal adjusted gross income does not apply to assets
25        acquired with such assets or with the proceeds from
26        the sale of such assets; provided, further, this

 

 

10300HB4951sam002- 1226 -LRB103 38094 HLH 74177 a

1        paragraph shall only apply to a taxpayer who was the
2        first recipient of such assets after their recovery
3        and who is a victim of persecution for racial or
4        religious reasons by Nazi Germany or any other Axis
5        regime or as an heir of the victim. The amount of and
6        the eligibility for any public assistance, benefit, or
7        similar entitlement is not affected by the inclusion
8        of items (i) and (ii) of this paragraph in gross income
9        for federal income tax purposes. This paragraph is
10        exempt from the provisions of Section 250;
11            (R) For taxable years 2001 and thereafter, for the
12        taxable year in which the bonus depreciation deduction
13        is taken on the taxpayer's federal income tax return
14        under subsection (k) of Section 168 of the Internal
15        Revenue Code and for each applicable taxable year
16        thereafter, an amount equal to "x", where:
17                (1) "y" equals the amount of the depreciation
18            deduction taken for the taxable year on the
19            taxpayer's federal income tax return on property
20            for which the bonus depreciation deduction was
21            taken in any year under subsection (k) of Section
22            168 of the Internal Revenue Code, but not
23            including the bonus depreciation deduction;
24                (2) for taxable years ending on or before
25            December 31, 2005, "x" equals "y" multiplied by 30
26            and then divided by 70 (or "y" multiplied by

 

 

10300HB4951sam002- 1227 -LRB103 38094 HLH 74177 a

1            0.429); and
2                (3) for taxable years ending after December
3            31, 2005:
4                    (i) for property on which a bonus
5                depreciation deduction of 30% of the adjusted
6                basis was taken, "x" equals "y" multiplied by
7                30 and then divided by 70 (or "y" multiplied
8                by 0.429);
9                    (ii) for property on which a bonus
10                depreciation deduction of 50% of the adjusted
11                basis was taken, "x" equals "y" multiplied by
12                1.0;
13                    (iii) for property on which a bonus
14                depreciation deduction of 100% of the adjusted
15                basis was taken in a taxable year ending on or
16                after December 31, 2021, "x" equals the
17                depreciation deduction that would be allowed
18                on that property if the taxpayer had made the
19                election under Section 168(k)(7) of the
20                Internal Revenue Code to not claim bonus
21                depreciation on that property; and
22                    (iv) for property on which a bonus
23                depreciation deduction of a percentage other
24                than 30%, 50% or 100% of the adjusted basis
25                was taken in a taxable year ending on or after
26                December 31, 2021, "x" equals "y" multiplied

 

 

10300HB4951sam002- 1228 -LRB103 38094 HLH 74177 a

1                by 100 times the percentage bonus depreciation
2                on the property (that is, 100(bonus%)) and
3                then divided by 100 times 1 minus the
4                percentage bonus depreciation on the property
5                (that is, 100(1-bonus%)).
6            The aggregate amount deducted under this
7        subparagraph in all taxable years for any one piece of
8        property may not exceed the amount of the bonus
9        depreciation deduction taken on that property on the
10        taxpayer's federal income tax return under subsection
11        (k) of Section 168 of the Internal Revenue Code. This
12        subparagraph (R) is exempt from the provisions of
13        Section 250;
14            (S) If the taxpayer sells, transfers, abandons, or
15        otherwise disposes of property for which the taxpayer
16        was required in any taxable year to make an addition
17        modification under subparagraph (G-10), then an amount
18        equal to that addition modification.
19            If the taxpayer continues to own property through
20        the last day of the last tax year for which a
21        subtraction is allowed with respect to that property
22        under subparagraph (R) and for which the taxpayer was
23        required in any taxable year to make an addition
24        modification under subparagraph (G-10), then an amount
25        equal to that addition modification.
26            The taxpayer is allowed to take the deduction

 

 

10300HB4951sam002- 1229 -LRB103 38094 HLH 74177 a

1        under this subparagraph only once with respect to any
2        one piece of property.
3            This subparagraph (S) is exempt from the
4        provisions of Section 250;
5            (T) The amount of (i) any interest income (net of
6        the deductions allocable thereto) taken into account
7        for the taxable year with respect to a transaction
8        with a taxpayer that is required to make an addition
9        modification with respect to such transaction under
10        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
11        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
12        the amount of such addition modification and (ii) any
13        income from intangible property (net of the deductions
14        allocable thereto) taken into account for the taxable
15        year with respect to a transaction with a taxpayer
16        that is required to make an addition modification with
17        respect to such transaction under Section
18        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
19        203(d)(2)(D-8), but not to exceed the amount of such
20        addition modification. This subparagraph (T) is exempt
21        from the provisions of Section 250;
22            (U) An amount equal to the interest income taken
23        into account for the taxable year (net of the
24        deductions allocable thereto) with respect to
25        transactions with (i) a foreign person who would be a
26        member of the taxpayer's unitary business group but

 

 

10300HB4951sam002- 1230 -LRB103 38094 HLH 74177 a

1        for the fact the foreign person's business activity
2        outside the United States is 80% or more of that
3        person's total business activity and (ii) for taxable
4        years ending on or after December 31, 2008, to a person
5        who would be a member of the same unitary business
6        group but for the fact that the person is prohibited
7        under Section 1501(a)(27) from being included in the
8        unitary business group because he or she is ordinarily
9        required to apportion business income under different
10        subsections of Section 304, but not to exceed the
11        addition modification required to be made for the same
12        taxable year under Section 203(c)(2)(G-12) for
13        interest paid, accrued, or incurred, directly or
14        indirectly, to the same person. This subparagraph (U)
15        is exempt from the provisions of Section 250;
16            (V) An amount equal to the income from intangible
17        property taken into account for the taxable year (net
18        of the deductions allocable thereto) with respect to
19        transactions with (i) a foreign person who would be a
20        member of the taxpayer's unitary business group but
21        for the fact that the foreign person's business
22        activity outside the United States is 80% or more of
23        that person's total business activity and (ii) for
24        taxable years ending on or after December 31, 2008, to
25        a person who would be a member of the same unitary
26        business group but for the fact that the person is

 

 

10300HB4951sam002- 1231 -LRB103 38094 HLH 74177 a

1        prohibited under Section 1501(a)(27) from being
2        included in the unitary business group because he or
3        she is ordinarily required to apportion business
4        income under different subsections of Section 304, but
5        not to exceed the addition modification required to be
6        made for the same taxable year under Section
7        203(c)(2)(G-13) for intangible expenses and costs
8        paid, accrued, or incurred, directly or indirectly, to
9        the same foreign person. This subparagraph (V) is
10        exempt from the provisions of Section 250;
11            (W) in the case of an estate, an amount equal to
12        all amounts included in such total pursuant to the
13        provisions of Section 111 of the Internal Revenue Code
14        as a recovery of items previously deducted by the
15        decedent from adjusted gross income in the computation
16        of taxable income. This subparagraph (W) is exempt
17        from Section 250;
18            (X) an amount equal to the refund included in such
19        total of any tax deducted for federal income tax
20        purposes, to the extent that deduction was added back
21        under subparagraph (F). This subparagraph (X) is
22        exempt from the provisions of Section 250;
23            (Y) For taxable years ending on or after December
24        31, 2011, in the case of a taxpayer who was required to
25        add back any insurance premiums under Section
26        203(c)(2)(G-14), such taxpayer may elect to subtract

 

 

10300HB4951sam002- 1232 -LRB103 38094 HLH 74177 a

1        that part of a reimbursement received from the
2        insurance company equal to the amount of the expense
3        or loss (including expenses incurred by the insurance
4        company) that would have been taken into account as a
5        deduction for federal income tax purposes if the
6        expense or loss had been uninsured. If a taxpayer
7        makes the election provided for by this subparagraph
8        (Y), the insurer to which the premiums were paid must
9        add back to income the amount subtracted by the
10        taxpayer pursuant to this subparagraph (Y). This
11        subparagraph (Y) is exempt from the provisions of
12        Section 250;
13            (Z) For taxable years beginning after December 31,
14        2018 and before January 1, 2026, the amount of excess
15        business loss of the taxpayer disallowed as a
16        deduction by Section 461(l)(1)(B) of the Internal
17        Revenue Code; and
18            (AA) For taxable years beginning on or after
19        January 1, 2023, for any cannabis establishment
20        operating in this State and licensed under the
21        Cannabis Regulation and Tax Act or any cannabis
22        cultivation center or medical cannabis dispensing
23        organization operating in this State and licensed
24        under the Compassionate Use of Medical Cannabis
25        Program Act, an amount equal to the deductions that
26        were disallowed under Section 280E of the Internal

 

 

10300HB4951sam002- 1233 -LRB103 38094 HLH 74177 a

1        Revenue Code for the taxable year and that would not be
2        added back under this subsection. The provisions of
3        this subparagraph (AA) are exempt from the provisions
4        of Section 250.
5        (3) Limitation. The amount of any modification
6    otherwise required under this subsection shall, under
7    regulations prescribed by the Department, be adjusted by
8    any amounts included therein which were properly paid,
9    credited, or required to be distributed, or permanently
10    set aside for charitable purposes pursuant to Internal
11    Revenue Code Section 642(c) during the taxable year.
 
12    (d) Partnerships.
13        (1) In general. In the case of a partnership, base
14    income means an amount equal to the taxpayer's taxable
15    income for the taxable year as modified by paragraph (2).
16        (2) Modifications. The taxable income referred to in
17    paragraph (1) shall be modified by adding thereto the sum
18    of the following amounts:
19            (A) An amount equal to all amounts paid or accrued
20        to the taxpayer as interest or dividends during the
21        taxable year to the extent excluded from gross income
22        in the computation of taxable income;
23            (B) An amount equal to the amount of tax imposed by
24        this Act to the extent deducted from gross income for
25        the taxable year;

 

 

10300HB4951sam002- 1234 -LRB103 38094 HLH 74177 a

1            (C) The amount of deductions allowed to the
2        partnership pursuant to Section 707 (c) of the
3        Internal Revenue Code in calculating its taxable
4        income;
5            (D) An amount equal to the amount of the capital
6        gain deduction allowable under the Internal Revenue
7        Code, to the extent deducted from gross income in the
8        computation of taxable income;
9            (D-5) For taxable years 2001 and thereafter, an
10        amount equal to the bonus depreciation deduction taken
11        on the taxpayer's federal income tax return for the
12        taxable year under subsection (k) of Section 168 of
13        the Internal Revenue Code;
14            (D-6) If the taxpayer sells, transfers, abandons,
15        or otherwise disposes of property for which the
16        taxpayer was required in any taxable year to make an
17        addition modification under subparagraph (D-5), then
18        an amount equal to the aggregate amount of the
19        deductions taken in all taxable years under
20        subparagraph (O) with respect to that property.
21            If the taxpayer continues to own property through
22        the last day of the last tax year for which a
23        subtraction is allowed with respect to that property
24        under subparagraph (O) and for which the taxpayer was
25        allowed in any taxable year to make a subtraction
26        modification under subparagraph (O), then an amount

 

 

10300HB4951sam002- 1235 -LRB103 38094 HLH 74177 a

1        equal to that subtraction modification.
2            The taxpayer is required to make the addition
3        modification under this subparagraph only once with
4        respect to any one piece of property;
5            (D-7) An amount equal to the amount otherwise
6        allowed as a deduction in computing base income for
7        interest paid, accrued, or incurred, directly or
8        indirectly, (i) for taxable years ending on or after
9        December 31, 2004, to a foreign person who would be a
10        member of the same unitary business group but for the
11        fact the foreign person's business activity outside
12        the United States is 80% or more of the foreign
13        person's total business activity and (ii) for taxable
14        years ending on or after December 31, 2008, to a person
15        who would be a member of the same unitary business
16        group but for the fact that the person is prohibited
17        under Section 1501(a)(27) from being included in the
18        unitary business group because he or she is ordinarily
19        required to apportion business income under different
20        subsections of Section 304. The addition modification
21        required by this subparagraph shall be reduced to the
22        extent that dividends were included in base income of
23        the unitary group for the same taxable year and
24        received by the taxpayer or by a member of the
25        taxpayer's unitary business group (including amounts
26        included in gross income pursuant to Sections 951

 

 

10300HB4951sam002- 1236 -LRB103 38094 HLH 74177 a

1        through 964 of the Internal Revenue Code and amounts
2        included in gross income under Section 78 of the
3        Internal Revenue Code) with respect to the stock of
4        the same person to whom the interest was paid,
5        accrued, or incurred.
6            This paragraph shall not apply to the following:
7                (i) an item of interest paid, accrued, or
8            incurred, directly or indirectly, to a person who
9            is subject in a foreign country or state, other
10            than a state which requires mandatory unitary
11            reporting, to a tax on or measured by net income
12            with respect to such interest; or
13                (ii) an item of interest paid, accrued, or
14            incurred, directly or indirectly, to a person if
15            the taxpayer can establish, based on a
16            preponderance of the evidence, both of the
17            following:
18                    (a) the person, during the same taxable
19                year, paid, accrued, or incurred, the interest
20                to a person that is not a related member, and
21                    (b) the transaction giving rise to the
22                interest expense between the taxpayer and the
23                person did not have as a principal purpose the
24                avoidance of Illinois income tax, and is paid
25                pursuant to a contract or agreement that
26                reflects an arm's-length interest rate and

 

 

10300HB4951sam002- 1237 -LRB103 38094 HLH 74177 a

1                terms; or
2                (iii) the taxpayer can establish, based on
3            clear and convincing evidence, that the interest
4            paid, accrued, or incurred relates to a contract
5            or agreement entered into at arm's-length rates
6            and terms and the principal purpose for the
7            payment is not federal or Illinois tax avoidance;
8            or
9                (iv) an item of interest paid, accrued, or
10            incurred, directly or indirectly, to a person if
11            the taxpayer establishes by clear and convincing
12            evidence that the adjustments are unreasonable; or
13            if the taxpayer and the Director agree in writing
14            to the application or use of an alternative method
15            of apportionment under Section 304(f).
16                Nothing in this subsection shall preclude the
17            Director from making any other adjustment
18            otherwise allowed under Section 404 of this Act
19            for any tax year beginning after the effective
20            date of this amendment provided such adjustment is
21            made pursuant to regulation adopted by the
22            Department and such regulations provide methods
23            and standards by which the Department will utilize
24            its authority under Section 404 of this Act; and
25            (D-8) An amount equal to the amount of intangible
26        expenses and costs otherwise allowed as a deduction in

 

 

10300HB4951sam002- 1238 -LRB103 38094 HLH 74177 a

1        computing base income, and that were paid, accrued, or
2        incurred, directly or indirectly, (i) for taxable
3        years ending on or after December 31, 2004, to a
4        foreign person who would be a member of the same
5        unitary business group but for the fact that the
6        foreign person's business activity outside the United
7        States is 80% or more of that person's total business
8        activity and (ii) for taxable years ending on or after
9        December 31, 2008, to a person who would be a member of
10        the same unitary business group but for the fact that
11        the person is prohibited under Section 1501(a)(27)
12        from being included in the unitary business group
13        because he or she is ordinarily required to apportion
14        business income under different subsections of Section
15        304. The addition modification required by this
16        subparagraph shall be reduced to the extent that
17        dividends were included in base income of the unitary
18        group for the same taxable year and received by the
19        taxpayer or by a member of the taxpayer's unitary
20        business group (including amounts included in gross
21        income pursuant to Sections 951 through 964 of the
22        Internal Revenue Code and amounts included in gross
23        income under Section 78 of the Internal Revenue Code)
24        with respect to the stock of the same person to whom
25        the intangible expenses and costs were directly or
26        indirectly paid, incurred or accrued. The preceding

 

 

10300HB4951sam002- 1239 -LRB103 38094 HLH 74177 a

1        sentence shall not apply to the extent that the same
2        dividends caused a reduction to the addition
3        modification required under Section 203(d)(2)(D-7) of
4        this Act. As used in this subparagraph, the term
5        "intangible expenses and costs" includes (1) expenses,
6        losses, and costs for, or related to, the direct or
7        indirect acquisition, use, maintenance or management,
8        ownership, sale, exchange, or any other disposition of
9        intangible property; (2) losses incurred, directly or
10        indirectly, from factoring transactions or discounting
11        transactions; (3) royalty, patent, technical, and
12        copyright fees; (4) licensing fees; and (5) other
13        similar expenses and costs. For purposes of this
14        subparagraph, "intangible property" includes patents,
15        patent applications, trade names, trademarks, service
16        marks, copyrights, mask works, trade secrets, and
17        similar types of intangible assets;
18            This paragraph shall not apply to the following:
19                (i) any item of intangible expenses or costs
20            paid, accrued, or incurred, directly or
21            indirectly, from a transaction with a person who
22            is subject in a foreign country or state, other
23            than a state which requires mandatory unitary
24            reporting, to a tax on or measured by net income
25            with respect to such item; or
26                (ii) any item of intangible expense or cost

 

 

10300HB4951sam002- 1240 -LRB103 38094 HLH 74177 a

1            paid, accrued, or incurred, directly or
2            indirectly, if the taxpayer can establish, based
3            on a preponderance of the evidence, both of the
4            following:
5                    (a) the person during the same taxable
6                year paid, accrued, or incurred, the
7                intangible expense or cost to a person that is
8                not a related member, and
9                    (b) the transaction giving rise to the
10                intangible expense or cost between the
11                taxpayer and the person did not have as a
12                principal purpose the avoidance of Illinois
13                income tax, and is paid pursuant to a contract
14                or agreement that reflects arm's-length terms;
15                or
16                (iii) any item of intangible expense or cost
17            paid, accrued, or incurred, directly or
18            indirectly, from a transaction with a person if
19            the taxpayer establishes by clear and convincing
20            evidence, that the adjustments are unreasonable;
21            or if the taxpayer and the Director agree in
22            writing to the application or use of an
23            alternative method of apportionment under Section
24            304(f);
25                Nothing in this subsection shall preclude the
26            Director from making any other adjustment

 

 

10300HB4951sam002- 1241 -LRB103 38094 HLH 74177 a

1            otherwise allowed under Section 404 of this Act
2            for any tax year beginning after the effective
3            date of this amendment provided such adjustment is
4            made pursuant to regulation adopted by the
5            Department and such regulations provide methods
6            and standards by which the Department will utilize
7            its authority under Section 404 of this Act;
8            (D-9) For taxable years ending on or after
9        December 31, 2008, an amount equal to the amount of
10        insurance premium expenses and costs otherwise allowed
11        as a deduction in computing base income, and that were
12        paid, accrued, or incurred, directly or indirectly, to
13        a person who would be a member of the same unitary
14        business group but for the fact that the person is
15        prohibited under Section 1501(a)(27) from being
16        included in the unitary business group because he or
17        she is ordinarily required to apportion business
18        income under different subsections of Section 304. The
19        addition modification required by this subparagraph
20        shall be reduced to the extent that dividends were
21        included in base income of the unitary group for the
22        same taxable year and received by the taxpayer or by a
23        member of the taxpayer's unitary business group
24        (including amounts included in gross income under
25        Sections 951 through 964 of the Internal Revenue Code
26        and amounts included in gross income under Section 78

 

 

10300HB4951sam002- 1242 -LRB103 38094 HLH 74177 a

1        of the Internal Revenue Code) with respect to the
2        stock of the same person to whom the premiums and costs
3        were directly or indirectly paid, incurred, or
4        accrued. The preceding sentence does not apply to the
5        extent that the same dividends caused a reduction to
6        the addition modification required under Section
7        203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
8            (D-10) An amount equal to the credit allowable to
9        the taxpayer under Section 218(a) of this Act,
10        determined without regard to Section 218(c) of this
11        Act;
12            (D-11) For taxable years ending on or after
13        December 31, 2017, an amount equal to the deduction
14        allowed under Section 199 of the Internal Revenue Code
15        for the taxable year;
16            (D-12) the amount that is claimed as a federal
17        deduction when computing the taxpayer's federal
18        taxable income for the taxable year and that is
19        attributable to an endowment gift for which the
20        taxpayer receives a credit under the Illinois Gives
21        Tax Credit Act;
22    and by deducting from the total so obtained the following
23    amounts:
24            (E) The valuation limitation amount;
25            (F) An amount equal to the amount of any tax
26        imposed by this Act which was refunded to the taxpayer

 

 

10300HB4951sam002- 1243 -LRB103 38094 HLH 74177 a

1        and included in such total for the taxable year;
2            (G) An amount equal to all amounts included in
3        taxable income as modified by subparagraphs (A), (B),
4        (C) and (D) which are exempt from taxation by this
5        State either by reason of its statutes or Constitution
6        or by reason of the Constitution, treaties or statutes
7        of the United States; provided that, in the case of any
8        statute of this State that exempts income derived from
9        bonds or other obligations from the tax imposed under
10        this Act, the amount exempted shall be the interest
11        net of bond premium amortization;
12            (H) Any income of the partnership which
13        constitutes personal service income as defined in
14        Section 1348(b)(1) of the Internal Revenue Code (as in
15        effect December 31, 1981) or a reasonable allowance
16        for compensation paid or accrued for services rendered
17        by partners to the partnership, whichever is greater;
18        this subparagraph (H) is exempt from the provisions of
19        Section 250;
20            (I) An amount equal to all amounts of income
21        distributable to an entity subject to the Personal
22        Property Tax Replacement Income Tax imposed by
23        subsections (c) and (d) of Section 201 of this Act
24        including amounts distributable to organizations
25        exempt from federal income tax by reason of Section
26        501(a) of the Internal Revenue Code; this subparagraph

 

 

10300HB4951sam002- 1244 -LRB103 38094 HLH 74177 a

1        (I) is exempt from the provisions of Section 250;
2            (J) With the exception of any amounts subtracted
3        under subparagraph (G), an amount equal to the sum of
4        all amounts disallowed as deductions by (i) Sections
5        171(a)(2) and 265(a)(2) of the Internal Revenue Code,
6        and all amounts of expenses allocable to interest and
7        disallowed as deductions by Section 265(a)(1) of the
8        Internal Revenue Code; and (ii) for taxable years
9        ending on or after August 13, 1999, Sections
10        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
11        Internal Revenue Code, plus, (iii) for taxable years
12        ending on or after December 31, 2011, Section
13        45G(e)(3) of the Internal Revenue Code and, for
14        taxable years ending on or after December 31, 2008,
15        any amount included in gross income under Section 87
16        of the Internal Revenue Code; the provisions of this
17        subparagraph are exempt from the provisions of Section
18        250;
19            (K) An amount equal to those dividends included in
20        such total which were paid by a corporation which
21        conducts business operations in a River Edge
22        Redevelopment Zone or zones created under the River
23        Edge Redevelopment Zone Act and conducts substantially
24        all of its operations from a River Edge Redevelopment
25        Zone or zones. This subparagraph (K) is exempt from
26        the provisions of Section 250;

 

 

10300HB4951sam002- 1245 -LRB103 38094 HLH 74177 a

1            (L) An amount equal to any contribution made to a
2        job training project established pursuant to the Real
3        Property Tax Increment Allocation Redevelopment Act;
4            (M) An amount equal to those dividends included in
5        such total that were paid by a corporation that
6        conducts business operations in a federally designated
7        Foreign Trade Zone or Sub-Zone and that is designated
8        a High Impact Business located in Illinois; provided
9        that dividends eligible for the deduction provided in
10        subparagraph (K) of paragraph (2) of this subsection
11        shall not be eligible for the deduction provided under
12        this subparagraph (M);
13            (N) An amount equal to the amount of the deduction
14        used to compute the federal income tax credit for
15        restoration of substantial amounts held under claim of
16        right for the taxable year pursuant to Section 1341 of
17        the Internal Revenue Code;
18            (O) For taxable years 2001 and thereafter, for the
19        taxable year in which the bonus depreciation deduction
20        is taken on the taxpayer's federal income tax return
21        under subsection (k) of Section 168 of the Internal
22        Revenue Code and for each applicable taxable year
23        thereafter, an amount equal to "x", where:
24                (1) "y" equals the amount of the depreciation
25            deduction taken for the taxable year on the
26            taxpayer's federal income tax return on property

 

 

10300HB4951sam002- 1246 -LRB103 38094 HLH 74177 a

1            for which the bonus depreciation deduction was
2            taken in any year under subsection (k) of Section
3            168 of the Internal Revenue Code, but not
4            including the bonus depreciation deduction;
5                (2) for taxable years ending on or before
6            December 31, 2005, "x" equals "y" multiplied by 30
7            and then divided by 70 (or "y" multiplied by
8            0.429); and
9                (3) for taxable years ending after December
10            31, 2005:
11                    (i) for property on which a bonus
12                depreciation deduction of 30% of the adjusted
13                basis was taken, "x" equals "y" multiplied by
14                30 and then divided by 70 (or "y" multiplied
15                by 0.429);
16                    (ii) for property on which a bonus
17                depreciation deduction of 50% of the adjusted
18                basis was taken, "x" equals "y" multiplied by
19                1.0;
20                    (iii) for property on which a bonus
21                depreciation deduction of 100% of the adjusted
22                basis was taken in a taxable year ending on or
23                after December 31, 2021, "x" equals the
24                depreciation deduction that would be allowed
25                on that property if the taxpayer had made the
26                election under Section 168(k)(7) of the

 

 

10300HB4951sam002- 1247 -LRB103 38094 HLH 74177 a

1                Internal Revenue Code to not claim bonus
2                depreciation on that property; and
3                    (iv) for property on which a bonus
4                depreciation deduction of a percentage other
5                than 30%, 50% or 100% of the adjusted basis
6                was taken in a taxable year ending on or after
7                December 31, 2021, "x" equals "y" multiplied
8                by 100 times the percentage bonus depreciation
9                on the property (that is, 100(bonus%)) and
10                then divided by 100 times 1 minus the
11                percentage bonus depreciation on the property
12                (that is, 100(1-bonus%)).
13            The aggregate amount deducted under this
14        subparagraph in all taxable years for any one piece of
15        property may not exceed the amount of the bonus
16        depreciation deduction taken on that property on the
17        taxpayer's federal income tax return under subsection
18        (k) of Section 168 of the Internal Revenue Code. This
19        subparagraph (O) is exempt from the provisions of
20        Section 250;
21            (P) If the taxpayer sells, transfers, abandons, or
22        otherwise disposes of property for which the taxpayer
23        was required in any taxable year to make an addition
24        modification under subparagraph (D-5), then an amount
25        equal to that addition modification.
26            If the taxpayer continues to own property through

 

 

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1        the last day of the last tax year for which a
2        subtraction is allowed with respect to that property
3        under subparagraph (O) and for which the taxpayer was
4        required in any taxable year to make an addition
5        modification under subparagraph (D-5), then an amount
6        equal to that addition modification.
7            The taxpayer is allowed to take the deduction
8        under this subparagraph only once with respect to any
9        one piece of property.
10            This subparagraph (P) is exempt from the
11        provisions of Section 250;
12            (Q) The amount of (i) any interest income (net of
13        the deductions allocable thereto) taken into account
14        for the taxable year with respect to a transaction
15        with a taxpayer that is required to make an addition
16        modification with respect to such transaction under
17        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
18        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
19        the amount of such addition modification and (ii) any
20        income from intangible property (net of the deductions
21        allocable thereto) taken into account for the taxable
22        year with respect to a transaction with a taxpayer
23        that is required to make an addition modification with
24        respect to such transaction under Section
25        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
26        203(d)(2)(D-8), but not to exceed the amount of such

 

 

10300HB4951sam002- 1249 -LRB103 38094 HLH 74177 a

1        addition modification. This subparagraph (Q) is exempt
2        from Section 250;
3            (R) An amount equal to the interest income taken
4        into account for the taxable year (net of the
5        deductions allocable thereto) with respect to
6        transactions with (i) a foreign person who would be a
7        member of the taxpayer's unitary business group but
8        for the fact that the foreign person's business
9        activity outside the United States is 80% or more of
10        that person's total business activity and (ii) for
11        taxable years ending on or after December 31, 2008, to
12        a person who would be a member of the same unitary
13        business group but for the fact that the person is
14        prohibited under Section 1501(a)(27) from being
15        included in the unitary business group because he or
16        she is ordinarily required to apportion business
17        income under different subsections of Section 304, but
18        not to exceed the addition modification required to be
19        made for the same taxable year under Section
20        203(d)(2)(D-7) for interest paid, accrued, or
21        incurred, directly or indirectly, to the same person.
22        This subparagraph (R) is exempt from Section 250;
23            (S) An amount equal to the income from intangible
24        property taken into account for the taxable year (net
25        of the deductions allocable thereto) with respect to
26        transactions with (i) a foreign person who would be a

 

 

10300HB4951sam002- 1250 -LRB103 38094 HLH 74177 a

1        member of the taxpayer's unitary business group but
2        for the fact that the foreign person's business
3        activity outside the United States is 80% or more of
4        that person's total business activity and (ii) for
5        taxable years ending on or after December 31, 2008, to
6        a person who would be a member of the same unitary
7        business group but for the fact that the person is
8        prohibited under Section 1501(a)(27) from being
9        included in the unitary business group because he or
10        she is ordinarily required to apportion business
11        income under different subsections of Section 304, but
12        not to exceed the addition modification required to be
13        made for the same taxable year under Section
14        203(d)(2)(D-8) for intangible expenses and costs paid,
15        accrued, or incurred, directly or indirectly, to the
16        same person. This subparagraph (S) is exempt from
17        Section 250;
18            (T) For taxable years ending on or after December
19        31, 2011, in the case of a taxpayer who was required to
20        add back any insurance premiums under Section
21        203(d)(2)(D-9), such taxpayer may elect to subtract
22        that part of a reimbursement received from the
23        insurance company equal to the amount of the expense
24        or loss (including expenses incurred by the insurance
25        company) that would have been taken into account as a
26        deduction for federal income tax purposes if the

 

 

10300HB4951sam002- 1251 -LRB103 38094 HLH 74177 a

1        expense or loss had been uninsured. If a taxpayer
2        makes the election provided for by this subparagraph
3        (T), the insurer to which the premiums were paid must
4        add back to income the amount subtracted by the
5        taxpayer pursuant to this subparagraph (T). This
6        subparagraph (T) is exempt from the provisions of
7        Section 250; and
8            (U) For taxable years beginning on or after
9        January 1, 2023, for any cannabis establishment
10        operating in this State and licensed under the
11        Cannabis Regulation and Tax Act or any cannabis
12        cultivation center or medical cannabis dispensing
13        organization operating in this State and licensed
14        under the Compassionate Use of Medical Cannabis
15        Program Act, an amount equal to the deductions that
16        were disallowed under Section 280E of the Internal
17        Revenue Code for the taxable year and that would not be
18        added back under this subsection. The provisions of
19        this subparagraph (U) are exempt from the provisions
20        of Section 250.
 
21    (e) Gross income; adjusted gross income; taxable income.
22        (1) In general. Subject to the provisions of paragraph
23    (2) and subsection (b)(3), for purposes of this Section
24    and Section 803(e), a taxpayer's gross income, adjusted
25    gross income, or taxable income for the taxable year shall

 

 

10300HB4951sam002- 1252 -LRB103 38094 HLH 74177 a

1    mean the amount of gross income, adjusted gross income or
2    taxable income properly reportable for federal income tax
3    purposes for the taxable year under the provisions of the
4    Internal Revenue Code. Taxable income may be less than
5    zero. However, for taxable years ending on or after
6    December 31, 1986, net operating loss carryforwards from
7    taxable years ending prior to December 31, 1986, may not
8    exceed the sum of federal taxable income for the taxable
9    year before net operating loss deduction, plus the excess
10    of addition modifications over subtraction modifications
11    for the taxable year. For taxable years ending prior to
12    December 31, 1986, taxable income may never be an amount
13    in excess of the net operating loss for the taxable year as
14    defined in subsections (c) and (d) of Section 172 of the
15    Internal Revenue Code, provided that when taxable income
16    of a corporation (other than a Subchapter S corporation),
17    trust, or estate is less than zero and addition
18    modifications, other than those provided by subparagraph
19    (E) of paragraph (2) of subsection (b) for corporations or
20    subparagraph (E) of paragraph (2) of subsection (c) for
21    trusts and estates, exceed subtraction modifications, an
22    addition modification must be made under those
23    subparagraphs for any other taxable year to which the
24    taxable income less than zero (net operating loss) is
25    applied under Section 172 of the Internal Revenue Code or
26    under subparagraph (E) of paragraph (2) of this subsection

 

 

10300HB4951sam002- 1253 -LRB103 38094 HLH 74177 a

1    (e) applied in conjunction with Section 172 of the
2    Internal Revenue Code.
3        (2) Special rule. For purposes of paragraph (1) of
4    this subsection, the taxable income properly reportable
5    for federal income tax purposes shall mean:
6            (A) Certain life insurance companies. In the case
7        of a life insurance company subject to the tax imposed
8        by Section 801 of the Internal Revenue Code, life
9        insurance company taxable income, plus the amount of
10        distribution from pre-1984 policyholder surplus
11        accounts as calculated under Section 815a of the
12        Internal Revenue Code;
13            (B) Certain other insurance companies. In the case
14        of mutual insurance companies subject to the tax
15        imposed by Section 831 of the Internal Revenue Code,
16        insurance company taxable income;
17            (C) Regulated investment companies. In the case of
18        a regulated investment company subject to the tax
19        imposed by Section 852 of the Internal Revenue Code,
20        investment company taxable income;
21            (D) Real estate investment trusts. In the case of
22        a real estate investment trust subject to the tax
23        imposed by Section 857 of the Internal Revenue Code,
24        real estate investment trust taxable income;
25            (E) Consolidated corporations. In the case of a
26        corporation which is a member of an affiliated group

 

 

10300HB4951sam002- 1254 -LRB103 38094 HLH 74177 a

1        of corporations filing a consolidated income tax
2        return for the taxable year for federal income tax
3        purposes, taxable income determined as if such
4        corporation had filed a separate return for federal
5        income tax purposes for the taxable year and each
6        preceding taxable year for which it was a member of an
7        affiliated group. For purposes of this subparagraph,
8        the taxpayer's separate taxable income shall be
9        determined as if the election provided by Section
10        243(b)(2) of the Internal Revenue Code had been in
11        effect for all such years;
12            (F) Cooperatives. In the case of a cooperative
13        corporation or association, the taxable income of such
14        organization determined in accordance with the
15        provisions of Section 1381 through 1388 of the
16        Internal Revenue Code, but without regard to the
17        prohibition against offsetting losses from patronage
18        activities against income from nonpatronage
19        activities; except that a cooperative corporation or
20        association may make an election to follow its federal
21        income tax treatment of patronage losses and
22        nonpatronage losses. In the event such election is
23        made, such losses shall be computed and carried over
24        in a manner consistent with subsection (a) of Section
25        207 of this Act and apportioned by the apportionment
26        factor reported by the cooperative on its Illinois

 

 

10300HB4951sam002- 1255 -LRB103 38094 HLH 74177 a

1        income tax return filed for the taxable year in which
2        the losses are incurred. The election shall be
3        effective for all taxable years with original returns
4        due on or after the date of the election. In addition,
5        the cooperative may file an amended return or returns,
6        as allowed under this Act, to provide that the
7        election shall be effective for losses incurred or
8        carried forward for taxable years occurring prior to
9        the date of the election. Once made, the election may
10        only be revoked upon approval of the Director. The
11        Department shall adopt rules setting forth
12        requirements for documenting the elections and any
13        resulting Illinois net loss and the standards to be
14        used by the Director in evaluating requests to revoke
15        elections. Public Act 96-932 is declaratory of
16        existing law;
17            (G) Subchapter S corporations. In the case of: (i)
18        a Subchapter S corporation for which there is in
19        effect an election for the taxable year under Section
20        1362 of the Internal Revenue Code, the taxable income
21        of such corporation determined in accordance with
22        Section 1363(b) of the Internal Revenue Code, except
23        that taxable income shall take into account those
24        items which are required by Section 1363(b)(1) of the
25        Internal Revenue Code to be separately stated; and
26        (ii) a Subchapter S corporation for which there is in

 

 

10300HB4951sam002- 1256 -LRB103 38094 HLH 74177 a

1        effect a federal election to opt out of the provisions
2        of the Subchapter S Revision Act of 1982 and have
3        applied instead the prior federal Subchapter S rules
4        as in effect on July 1, 1982, the taxable income of
5        such corporation determined in accordance with the
6        federal Subchapter S rules as in effect on July 1,
7        1982; and
8            (H) Partnerships. In the case of a partnership,
9        taxable income determined in accordance with Section
10        703 of the Internal Revenue Code, except that taxable
11        income shall take into account those items which are
12        required by Section 703(a)(1) to be separately stated
13        but which would be taken into account by an individual
14        in calculating his taxable income.
15        (3) Recapture of business expenses on disposition of
16    asset or business. Notwithstanding any other law to the
17    contrary, if in prior years income from an asset or
18    business has been classified as business income and in a
19    later year is demonstrated to be non-business income, then
20    all expenses, without limitation, deducted in such later
21    year and in the 2 immediately preceding taxable years
22    related to that asset or business that generated the
23    non-business income shall be added back and recaptured as
24    business income in the year of the disposition of the
25    asset or business. Such amount shall be apportioned to
26    Illinois using the greater of the apportionment fraction

 

 

10300HB4951sam002- 1257 -LRB103 38094 HLH 74177 a

1    computed for the business under Section 304 of this Act
2    for the taxable year or the average of the apportionment
3    fractions computed for the business under Section 304 of
4    this Act for the taxable year and for the 2 immediately
5    preceding taxable years.
 
6    (f) Valuation limitation amount.
7        (1) In general. The valuation limitation amount
8    referred to in subsections (a)(2)(G), (c)(2)(I) and
9    (d)(2)(E) is an amount equal to:
10            (A) The sum of the pre-August 1, 1969 appreciation
11        amounts (to the extent consisting of gain reportable
12        under the provisions of Section 1245 or 1250 of the
13        Internal Revenue Code) for all property in respect of
14        which such gain was reported for the taxable year;
15        plus
16            (B) The lesser of (i) the sum of the pre-August 1,
17        1969 appreciation amounts (to the extent consisting of
18        capital gain) for all property in respect of which
19        such gain was reported for federal income tax purposes
20        for the taxable year, or (ii) the net capital gain for
21        the taxable year, reduced in either case by any amount
22        of such gain included in the amount determined under
23        subsection (a)(2)(F) or (c)(2)(H).
24        (2) Pre-August 1, 1969 appreciation amount.
25            (A) If the fair market value of property referred

 

 

10300HB4951sam002- 1258 -LRB103 38094 HLH 74177 a

1        to in paragraph (1) was readily ascertainable on
2        August 1, 1969, the pre-August 1, 1969 appreciation
3        amount for such property is the lesser of (i) the
4        excess of such fair market value over the taxpayer's
5        basis (for determining gain) for such property on that
6        date (determined under the Internal Revenue Code as in
7        effect on that date), or (ii) the total gain realized
8        and reportable for federal income tax purposes in
9        respect of the sale, exchange or other disposition of
10        such property.
11            (B) If the fair market value of property referred
12        to in paragraph (1) was not readily ascertainable on
13        August 1, 1969, the pre-August 1, 1969 appreciation
14        amount for such property is that amount which bears
15        the same ratio to the total gain reported in respect of
16        the property for federal income tax purposes for the
17        taxable year, as the number of full calendar months in
18        that part of the taxpayer's holding period for the
19        property ending July 31, 1969 bears to the number of
20        full calendar months in the taxpayer's entire holding
21        period for the property.
22            (C) The Department shall prescribe such
23        regulations as may be necessary to carry out the
24        purposes of this paragraph.
 
25    (g) Double deductions. Unless specifically provided

 

 

10300HB4951sam002- 1259 -LRB103 38094 HLH 74177 a

1otherwise, nothing in this Section shall permit the same item
2to be deducted more than once.
 
3    (h) Legislative intention. Except as expressly provided by
4this Section there shall be no modifications or limitations on
5the amounts of income, gain, loss or deduction taken into
6account in determining gross income, adjusted gross income or
7taxable income for federal income tax purposes for the taxable
8year, or in the amount of such items entering into the
9computation of base income and net income under this Act for
10such taxable year, whether in respect of property values as of
11August 1, 1969 or otherwise.
12(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
13102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff.
1412-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; revised
159-26-23.)
 
16    (35 ILCS 5/241 new)
17    Sec. 241. The Illinois Gives tax credit.
18    (a) For taxable years ending on or after December 31, 2025
19and ending before January 1, 2030, each taxpayer for whom a tax
20credit has been authorized by the Department of Revenue under
21the Illinois Gives Tax Credit Act is entitled to a credit
22against the tax imposed under subsections (a) and (b) of
23Section 201 in an amount equal to the amount authorized under
24that Act.

 

 

10300HB4951sam002- 1260 -LRB103 38094 HLH 74177 a

1    (b) For partners of partnerships and shareholders of
2Subchapter S corporations, there is allowed a credit under
3this Section to be determined in accordance with Section 251
4of this Act.
5    (c) The credit may not be carried back and may not reduce
6the taxpayer's liability to less than zero. If the amount of
7the credit exceeds the tax liability for the year, the excess
8may be carried forward and applied to the tax liability of the
95 taxable years following the excess credit year. The tax
10credit shall be applied to the earliest year for which there is
11a tax liability. If there are credits for more than one year
12that are available to offset a liability, the earlier credit
13shall be applied first.
 
14
ARTICLE 175.

 
15    Section 175-5. The Property Tax Code is amended by
16changing Section 18-185 as follows:
 
17    (35 ILCS 200/18-185)
18    Sec. 18-185. Short title; definitions. This Division 5
19may be cited as the Property Tax Extension Limitation Law. As
20used in this Division 5:
21    "Consumer Price Index" means the Consumer Price Index for
22All Urban Consumers for all items published by the United
23States Department of Labor.

 

 

10300HB4951sam002- 1261 -LRB103 38094 HLH 74177 a

1    "Extension limitation" means (a) the lesser of 5% or the
2percentage increase in the Consumer Price Index during the
312-month calendar year preceding the levy year or (b) the rate
4of increase approved by voters under Section 18-205.
5    "Affected county" means a county of 3,000,000 or more
6inhabitants or a county contiguous to a county of 3,000,000 or
7more inhabitants.
8    "Taxing district" has the same meaning provided in Section
91-150, except as otherwise provided in this Section. For the
101991 through 1994 levy years only, "taxing district" includes
11only each non-home rule taxing district having the majority of
12its 1990 equalized assessed value within any county or
13counties contiguous to a county with 3,000,000 or more
14inhabitants. Beginning with the 1995 levy year, "taxing
15district" includes only each non-home rule taxing district
16subject to this Law before the 1995 levy year and each non-home
17rule taxing district not subject to this Law before the 1995
18levy year having the majority of its 1994 equalized assessed
19value in an affected county or counties. Beginning with the
20levy year in which this Law becomes applicable to a taxing
21district as provided in Section 18-213, "taxing district" also
22includes those taxing districts made subject to this Law as
23provided in Section 18-213.
24    "Aggregate extension" for taxing districts to which this
25Law applied before the 1995 levy year means the annual
26corporate extension for the taxing district and those special

 

 

10300HB4951sam002- 1262 -LRB103 38094 HLH 74177 a

1purpose extensions that are made annually for the taxing
2district, excluding special purpose extensions: (a) made for
3the taxing district to pay interest or principal on general
4obligation bonds that were approved by referendum; (b) made
5for any taxing district to pay interest or principal on
6general obligation bonds issued before October 1, 1991; (c)
7made for any taxing district to pay interest or principal on
8bonds issued to refund or continue to refund those bonds
9issued before October 1, 1991; (d) made for any taxing
10district to pay interest or principal on bonds issued to
11refund or continue to refund bonds issued after October 1,
121991 that were approved by referendum; (e) made for any taxing
13district to pay interest or principal on revenue bonds issued
14before October 1, 1991 for payment of which a property tax levy
15or the full faith and credit of the unit of local government is
16pledged; however, a tax for the payment of interest or
17principal on those bonds shall be made only after the
18governing body of the unit of local government finds that all
19other sources for payment are insufficient to make those
20payments; (f) made for payments under a building commission
21lease when the lease payments are for the retirement of bonds
22issued by the commission before October 1, 1991, to pay for the
23building project; (g) made for payments due under installment
24contracts entered into before October 1, 1991; (h) made for
25payments of principal and interest on bonds issued under the
26Metropolitan Water Reclamation District Act to finance

 

 

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1construction projects initiated before October 1, 1991; (i)
2made for payments of principal and interest on limited bonds,
3as defined in Section 3 of the Local Government Debt Reform
4Act, in an amount not to exceed the debt service extension base
5less the amount in items (b), (c), (e), and (h) of this
6definition for non-referendum obligations, except obligations
7initially issued pursuant to referendum; (j) made for payments
8of principal and interest on bonds issued under Section 15 of
9the Local Government Debt Reform Act; (k) made by a school
10district that participates in the Special Education District
11of Lake County, created by special education joint agreement
12under Section 10-22.31 of the School Code, for payment of the
13school district's share of the amounts required to be
14contributed by the Special Education District of Lake County
15to the Illinois Municipal Retirement Fund under Article 7 of
16the Illinois Pension Code; the amount of any extension under
17this item (k) shall be certified by the school district to the
18county clerk; (l) made to fund expenses of providing joint
19recreational programs for persons with disabilities under
20Section 5-8 of the Park District Code or Section 11-95-14 of
21the Illinois Municipal Code; (m) made for temporary relocation
22loan repayment purposes pursuant to Sections 2-3.77 and
2317-2.2d of the School Code; (n) made for payment of principal
24and interest on any bonds issued under the authority of
25Section 17-2.2d of the School Code; (o) made for contributions
26to a firefighter's pension fund created under Article 4 of the

 

 

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1Illinois Pension Code, to the extent of the amount certified
2under item (5) of Section 4-134 of the Illinois Pension Code;
3and (p) made for road purposes in the first year after a
4township assumes the rights, powers, duties, assets, property,
5liabilities, obligations, and responsibilities of a road
6district abolished under the provisions of Section 6-133 of
7the Illinois Highway Code; and (q) made under Section 4 of the
8Community Mental Health Act to provide the necessary funds or
9to supplement existing funds for community mental health
10facilities and services, including facilities and services for
11the person with a developmental disability or a substance use
12disorder.
13    "Aggregate extension" for the taxing districts to which
14this Law did not apply before the 1995 levy year (except taxing
15districts subject to this Law in accordance with Section
1618-213) means the annual corporate extension for the taxing
17district and those special purpose extensions that are made
18annually for the taxing district, excluding special purpose
19extensions: (a) made for the taxing district to pay interest
20or principal on general obligation bonds that were approved by
21referendum; (b) made for any taxing district to pay interest
22or principal on general obligation bonds issued before March
231, 1995; (c) made for any taxing district to pay interest or
24principal on bonds issued to refund or continue to refund
25those bonds issued before March 1, 1995; (d) made for any
26taxing district to pay interest or principal on bonds issued

 

 

10300HB4951sam002- 1265 -LRB103 38094 HLH 74177 a

1to refund or continue to refund bonds issued after March 1,
21995 that were approved by referendum; (e) made for any taxing
3district to pay interest or principal on revenue bonds issued
4before March 1, 1995 for payment of which a property tax levy
5or the full faith and credit of the unit of local government is
6pledged; however, a tax for the payment of interest or
7principal on those bonds shall be made only after the
8governing body of the unit of local government finds that all
9other sources for payment are insufficient to make those
10payments; (f) made for payments under a building commission
11lease when the lease payments are for the retirement of bonds
12issued by the commission before March 1, 1995 to pay for the
13building project; (g) made for payments due under installment
14contracts entered into before March 1, 1995; (h) made for
15payments of principal and interest on bonds issued under the
16Metropolitan Water Reclamation District Act to finance
17construction projects initiated before October 1, 1991; (h-4)
18made for stormwater management purposes by the Metropolitan
19Water Reclamation District of Greater Chicago under Section 12
20of the Metropolitan Water Reclamation District Act; (h-8) made
21for payments of principal and interest on bonds issued under
22Section 9.6a of the Metropolitan Water Reclamation District
23Act to make contributions to the pension fund established
24under Article 13 of the Illinois Pension Code; (i) made for
25payments of principal and interest on limited bonds, as
26defined in Section 3 of the Local Government Debt Reform Act,

 

 

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1in an amount not to exceed the debt service extension base less
2the amount in items (b), (c), and (e) of this definition for
3non-referendum obligations, except obligations initially
4issued pursuant to referendum and bonds described in
5subsections (h) and (h-8) of this definition; (j) made for
6payments of principal and interest on bonds issued under
7Section 15 of the Local Government Debt Reform Act; (k) made
8for payments of principal and interest on bonds authorized by
9Public Act 88-503 and issued under Section 20a of the Chicago
10Park District Act for aquarium or museum projects and bonds
11issued under Section 20a of the Chicago Park District Act for
12the purpose of making contributions to the pension fund
13established under Article 12 of the Illinois Pension Code; (l)
14made for payments of principal and interest on bonds
15authorized by Public Act 87-1191 or 93-601 and (i) issued
16pursuant to Section 21.2 of the Cook County Forest Preserve
17District Act, (ii) issued under Section 42 of the Cook County
18Forest Preserve District Act for zoological park projects, or
19(iii) issued under Section 44.1 of the Cook County Forest
20Preserve District Act for botanical gardens projects; (m) made
21pursuant to Section 34-53.5 of the School Code, whether levied
22annually or not; (n) made to fund expenses of providing joint
23recreational programs for persons with disabilities under
24Section 5-8 of the Park District Code or Section 11-95-14 of
25the Illinois Municipal Code; (o) made by the Chicago Park
26District for recreational programs for persons with

 

 

10300HB4951sam002- 1267 -LRB103 38094 HLH 74177 a

1disabilities under subsection (c) of Section 7.06 of the
2Chicago Park District Act; (p) made for contributions to a
3firefighter's pension fund created under Article 4 of the
4Illinois Pension Code, to the extent of the amount certified
5under item (5) of Section 4-134 of the Illinois Pension Code;
6(q) made by Ford Heights School District 169 under Section
717-9.02 of the School Code; and (r) made for the purpose of
8making employer contributions to the Public School Teachers'
9Pension and Retirement Fund of Chicago under Section 34-53 of
10the School Code; and (s) made under Section 4 of the Community
11Mental Health Act to provide the necessary funds or to
12supplement existing funds for community mental health
13facilities and services, including facilities and services for
14the person with a developmental disability or a substance use
15disorder.
16    "Aggregate extension" for all taxing districts to which
17this Law applies in accordance with Section 18-213, except for
18those taxing districts subject to paragraph (2) of subsection
19(e) of Section 18-213, means the annual corporate extension
20for the taxing district and those special purpose extensions
21that are made annually for the taxing district, excluding
22special purpose extensions: (a) made for the taxing district
23to pay interest or principal on general obligation bonds that
24were approved by referendum; (b) made for any taxing district
25to pay interest or principal on general obligation bonds
26issued before the date on which the referendum making this Law

 

 

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1applicable to the taxing district is held; (c) made for any
2taxing district to pay interest or principal on bonds issued
3to refund or continue to refund those bonds issued before the
4date on which the referendum making this Law applicable to the
5taxing district is held; (d) made for any taxing district to
6pay interest or principal on bonds issued to refund or
7continue to refund bonds issued after the date on which the
8referendum making this Law applicable to the taxing district
9is held if the bonds were approved by referendum after the date
10on which the referendum making this Law applicable to the
11taxing district is held; (e) made for any taxing district to
12pay interest or principal on revenue bonds issued before the
13date on which the referendum making this Law applicable to the
14taxing district is held for payment of which a property tax
15levy or the full faith and credit of the unit of local
16government is pledged; however, a tax for the payment of
17interest or principal on those bonds shall be made only after
18the governing body of the unit of local government finds that
19all other sources for payment are insufficient to make those
20payments; (f) made for payments under a building commission
21lease when the lease payments are for the retirement of bonds
22issued by the commission before the date on which the
23referendum making this Law applicable to the taxing district
24is held to pay for the building project; (g) made for payments
25due under installment contracts entered into before the date
26on which the referendum making this Law applicable to the

 

 

10300HB4951sam002- 1269 -LRB103 38094 HLH 74177 a

1taxing district is held; (h) made for payments of principal
2and interest on limited bonds, as defined in Section 3 of the
3Local Government Debt Reform Act, in an amount not to exceed
4the debt service extension base less the amount in items (b),
5(c), and (e) of this definition for non-referendum
6obligations, except obligations initially issued pursuant to
7referendum; (i) made for payments of principal and interest on
8bonds issued under Section 15 of the Local Government Debt
9Reform Act; (j) made for a qualified airport authority to pay
10interest or principal on general obligation bonds issued for
11the purpose of paying obligations due under, or financing
12airport facilities required to be acquired, constructed,
13installed or equipped pursuant to, contracts entered into
14before March 1, 1996 (but not including any amendments to such
15a contract taking effect on or after that date); (k) made to
16fund expenses of providing joint recreational programs for
17persons with disabilities under Section 5-8 of the Park
18District Code or Section 11-95-14 of the Illinois Municipal
19Code; (l) made for contributions to a firefighter's pension
20fund created under Article 4 of the Illinois Pension Code, to
21the extent of the amount certified under item (5) of Section
224-134 of the Illinois Pension Code; and (m) made for the taxing
23district to pay interest or principal on general obligation
24bonds issued pursuant to Section 19-3.10 of the School Code;
25and (n) made under Section 4 of the Community Mental Health Act
26to provide the necessary funds or to supplement existing funds

 

 

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1for community mental health facilities and services, including
2facilities and services for the person with a developmental
3disability or a substance use disorder.
4    "Aggregate extension" for all taxing districts to which
5this Law applies in accordance with paragraph (2) of
6subsection (e) of Section 18-213 means the annual corporate
7extension for the taxing district and those special purpose
8extensions that are made annually for the taxing district,
9excluding special purpose extensions: (a) made for the taxing
10district to pay interest or principal on general obligation
11bonds that were approved by referendum; (b) made for any
12taxing district to pay interest or principal on general
13obligation bonds issued before March 7, 1997 (the effective
14date of Public Act 89-718); (c) made for any taxing district to
15pay interest or principal on bonds issued to refund or
16continue to refund those bonds issued before March 7, 1997
17(the effective date of Public Act 89-718); (d) made for any
18taxing district to pay interest or principal on bonds issued
19to refund or continue to refund bonds issued after March 7,
201997 (the effective date of Public Act 89-718) if the bonds
21were approved by referendum after March 7, 1997 (the effective
22date of Public Act 89-718); (e) made for any taxing district to
23pay interest or principal on revenue bonds issued before March
247, 1997 (the effective date of Public Act 89-718) for payment
25of which a property tax levy or the full faith and credit of
26the unit of local government is pledged; however, a tax for the

 

 

10300HB4951sam002- 1271 -LRB103 38094 HLH 74177 a

1payment of interest or principal on those bonds shall be made
2only after the governing body of the unit of local government
3finds that all other sources for payment are insufficient to
4make those payments; (f) made for payments under a building
5commission lease when the lease payments are for the
6retirement of bonds issued by the commission before March 7,
71997 (the effective date of Public Act 89-718) to pay for the
8building project; (g) made for payments due under installment
9contracts entered into before March 7, 1997 (the effective
10date of Public Act 89-718); (h) made for payments of principal
11and interest on limited bonds, as defined in Section 3 of the
12Local Government Debt Reform Act, in an amount not to exceed
13the debt service extension base less the amount in items (b),
14(c), and (e) of this definition for non-referendum
15obligations, except obligations initially issued pursuant to
16referendum; (i) made for payments of principal and interest on
17bonds issued under Section 15 of the Local Government Debt
18Reform Act; (j) made for a qualified airport authority to pay
19interest or principal on general obligation bonds issued for
20the purpose of paying obligations due under, or financing
21airport facilities required to be acquired, constructed,
22installed or equipped pursuant to, contracts entered into
23before March 1, 1996 (but not including any amendments to such
24a contract taking effect on or after that date); (k) made to
25fund expenses of providing joint recreational programs for
26persons with disabilities under Section 5-8 of the Park

 

 

10300HB4951sam002- 1272 -LRB103 38094 HLH 74177 a

1District Code or Section 11-95-14 of the Illinois Municipal
2Code; and (l) made for contributions to a firefighter's
3pension fund created under Article 4 of the Illinois Pension
4Code, to the extent of the amount certified under item (5) of
5Section 4-134 of the Illinois Pension Code; and (m) made under
6Section 4 of the Community Mental Health Act to provide the
7necessary funds or to supplement existing funds for community
8mental health facilities and services, including facilities
9and services for the person with a developmental disability or
10a substance use disorder.
11    "Debt service extension base" means an amount equal to
12that portion of the extension for a taxing district for the
131994 levy year, or for those taxing districts subject to this
14Law in accordance with Section 18-213, except for those
15subject to paragraph (2) of subsection (e) of Section 18-213,
16for the levy year in which the referendum making this Law
17applicable to the taxing district is held, or for those taxing
18districts subject to this Law in accordance with paragraph (2)
19of subsection (e) of Section 18-213 for the 1996 levy year,
20constituting an extension for payment of principal and
21interest on bonds issued by the taxing district without
22referendum, but not including excluded non-referendum bonds.
23For park districts (i) that were first subject to this Law in
241991 or 1995 and (ii) whose extension for the 1994 levy year
25for the payment of principal and interest on bonds issued by
26the park district without referendum (but not including

 

 

10300HB4951sam002- 1273 -LRB103 38094 HLH 74177 a

1excluded non-referendum bonds) was less than 51% of the amount
2for the 1991 levy year constituting an extension for payment
3of principal and interest on bonds issued by the park district
4without referendum (but not including excluded non-referendum
5bonds), "debt service extension base" means an amount equal to
6that portion of the extension for the 1991 levy year
7constituting an extension for payment of principal and
8interest on bonds issued by the park district without
9referendum (but not including excluded non-referendum bonds).
10A debt service extension base established or increased at any
11time pursuant to any provision of this Law, except Section
1218-212, shall be increased each year commencing with the later
13of (i) the 2009 levy year or (ii) the first levy year in which
14this Law becomes applicable to the taxing district, by the
15lesser of 5% or the percentage increase in the Consumer Price
16Index during the 12-month calendar year preceding the levy
17year. The debt service extension base may be established or
18increased as provided under Section 18-212. "Excluded
19non-referendum bonds" means (i) bonds authorized by Public Act
2088-503 and issued under Section 20a of the Chicago Park
21District Act for aquarium and museum projects; (ii) bonds
22issued under Section 15 of the Local Government Debt Reform
23Act; or (iii) refunding obligations issued to refund or to
24continue to refund obligations initially issued pursuant to
25referendum.
26    "Special purpose extensions" include, but are not limited

 

 

10300HB4951sam002- 1274 -LRB103 38094 HLH 74177 a

1to, extensions for levies made on an annual basis for
2unemployment and workers' compensation, self-insurance,
3contributions to pension plans, and extensions made pursuant
4to Section 6-601 of the Illinois Highway Code for a road
5district's permanent road fund whether levied annually or not.
6The extension for a special service area is not included in the
7aggregate extension.
8    "Aggregate extension base" means the taxing district's
9last preceding aggregate extension as adjusted under Sections
1018-135, 18-215, 18-230, 18-206, and 18-233. Beginning with
11levy year 2022, for taxing districts that are specified in
12Section 18-190.7, the taxing district's aggregate extension
13base shall be calculated as provided in Section 18-190.7. An
14adjustment under Section 18-135 shall be made for the 2007
15levy year and all subsequent levy years whenever one or more
16counties within which a taxing district is located (i) used
17estimated valuations or rates when extending taxes in the
18taxing district for the last preceding levy year that resulted
19in the over or under extension of taxes, or (ii) increased or
20decreased the tax extension for the last preceding levy year
21as required by Section 18-135(c). Whenever an adjustment is
22required under Section 18-135, the aggregate extension base of
23the taxing district shall be equal to the amount that the
24aggregate extension of the taxing district would have been for
25the last preceding levy year if either or both (i) actual,
26rather than estimated, valuations or rates had been used to

 

 

10300HB4951sam002- 1275 -LRB103 38094 HLH 74177 a

1calculate the extension of taxes for the last levy year, or
2(ii) the tax extension for the last preceding levy year had not
3been adjusted as required by subsection (c) of Section 18-135.
4    Notwithstanding any other provision of law, for levy year
52012, the aggregate extension base for West Northfield School
6District No. 31 in Cook County shall be $12,654,592.
7    Notwithstanding any other provision of law, for levy year
82022, the aggregate extension base of a home equity assurance
9program that levied at least $1,000,000 in property taxes in
10levy year 2019 or 2020 under the Home Equity Assurance Act
11shall be the amount that the program's aggregate extension
12base for levy year 2021 would have been if the program had
13levied a property tax for levy year 2021.
14    "Levy year" has the same meaning as "year" under Section
151-155.
16    "New property" means (i) the assessed value, after final
17board of review or board of appeals action, of new
18improvements or additions to existing improvements on any
19parcel of real property that increase the assessed value of
20that real property during the levy year multiplied by the
21equalization factor issued by the Department under Section
2217-30, (ii) the assessed value, after final board of review or
23board of appeals action, of real property not exempt from real
24estate taxation, which real property was exempt from real
25estate taxation for any portion of the immediately preceding
26levy year, multiplied by the equalization factor issued by the

 

 

10300HB4951sam002- 1276 -LRB103 38094 HLH 74177 a

1Department under Section 17-30, including the assessed value,
2upon final stabilization of occupancy after new construction
3is complete, of any real property located within the
4boundaries of an otherwise or previously exempt military
5reservation that is intended for residential use and owned by
6or leased to a private corporation or other entity, (iii) in
7counties that classify in accordance with Section 4 of Article
8IX of the Illinois Constitution, an incentive property's
9additional assessed value resulting from a scheduled increase
10in the level of assessment as applied to the first year final
11board of review market value, and (iv) any increase in
12assessed value due to oil or gas production from an oil or gas
13well required to be permitted under the Hydraulic Fracturing
14Regulatory Act that was not produced in or accounted for
15during the previous levy year. In addition, the county clerk
16in a county containing a population of 3,000,000 or more shall
17include in the 1997 recovered tax increment value for any
18school district, any recovered tax increment value that was
19applicable to the 1995 tax year calculations.
20    "Qualified airport authority" means an airport authority
21organized under the Airport Authorities Act and located in a
22county bordering on the State of Wisconsin and having a
23population in excess of 200,000 and not greater than 500,000.
24    "Recovered tax increment value" means, except as otherwise
25provided in this paragraph, the amount of the current year's
26equalized assessed value, in the first year after a

 

 

10300HB4951sam002- 1277 -LRB103 38094 HLH 74177 a

1municipality terminates the designation of an area as a
2redevelopment project area previously established under the
3Tax Increment Allocation Redevelopment Act in the Illinois
4Municipal Code, previously established under the Industrial
5Jobs Recovery Law in the Illinois Municipal Code, previously
6established under the Economic Development Project Area Tax
7Increment Act of 1995, or previously established under the
8Economic Development Area Tax Increment Allocation Act, of
9each taxable lot, block, tract, or parcel of real property in
10the redevelopment project area over and above the initial
11equalized assessed value of each property in the redevelopment
12project area. For the taxes which are extended for the 1997
13levy year, the recovered tax increment value for a non-home
14rule taxing district that first became subject to this Law for
15the 1995 levy year because a majority of its 1994 equalized
16assessed value was in an affected county or counties shall be
17increased if a municipality terminated the designation of an
18area in 1993 as a redevelopment project area previously
19established under the Tax Increment Allocation Redevelopment
20Act in the Illinois Municipal Code, previously established
21under the Industrial Jobs Recovery Law in the Illinois
22Municipal Code, or previously established under the Economic
23Development Area Tax Increment Allocation Act, by an amount
24equal to the 1994 equalized assessed value of each taxable
25lot, block, tract, or parcel of real property in the
26redevelopment project area over and above the initial

 

 

10300HB4951sam002- 1278 -LRB103 38094 HLH 74177 a

1equalized assessed value of each property in the redevelopment
2project area. In the first year after a municipality removes a
3taxable lot, block, tract, or parcel of real property from a
4redevelopment project area established under the Tax Increment
5Allocation Redevelopment Act in the Illinois Municipal Code,
6the Industrial Jobs Recovery Law in the Illinois Municipal
7Code, or the Economic Development Area Tax Increment
8Allocation Act, "recovered tax increment value" means the
9amount of the current year's equalized assessed value of each
10taxable lot, block, tract, or parcel of real property removed
11from the redevelopment project area over and above the initial
12equalized assessed value of that real property before removal
13from the redevelopment project area.
14    Except as otherwise provided in this Section, "limiting
15rate" means a fraction the numerator of which is the last
16preceding aggregate extension base times an amount equal to
17one plus the extension limitation defined in this Section and
18the denominator of which is the current year's equalized
19assessed value of all real property in the territory under the
20jurisdiction of the taxing district during the prior levy
21year. For those taxing districts that reduced their aggregate
22extension for the last preceding levy year, except for school
23districts that reduced their extension for educational
24purposes pursuant to Section 18-206, the highest aggregate
25extension in any of the last 3 preceding levy years shall be
26used for the purpose of computing the limiting rate. The

 

 

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1denominator shall not include new property or the recovered
2tax increment value. If a new rate, a rate decrease, or a
3limiting rate increase has been approved at an election held
4after March 21, 2006, then (i) the otherwise applicable
5limiting rate shall be increased by the amount of the new rate
6or shall be reduced by the amount of the rate decrease, as the
7case may be, or (ii) in the case of a limiting rate increase,
8the limiting rate shall be equal to the rate set forth in the
9proposition approved by the voters for each of the years
10specified in the proposition, after which the limiting rate of
11the taxing district shall be calculated as otherwise provided.
12In the case of a taxing district that obtained referendum
13approval for an increased limiting rate on March 20, 2012, the
14limiting rate for tax year 2012 shall be the rate that
15generates the approximate total amount of taxes extendable for
16that tax year, as set forth in the proposition approved by the
17voters; this rate shall be the final rate applied by the county
18clerk for the aggregate of all capped funds of the district for
19tax year 2012.
20(Source: P.A. 102-263, eff. 8-6-21; 102-311, eff. 8-6-21;
21102-519, eff. 8-20-21; 102-558, eff. 8-20-21; 102-707, eff.
224-22-22; 102-813, eff. 5-13-22; 102-895, eff. 5-23-22;
23103-154, eff. 6-30-23.)
 
24    Section 175-10. The Community Mental Health Act is amended
25by changing Sections 3a, 3b, 3e, 3f, 4, 5, 6, and 7 as follows:
 

 

 

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1    (405 ILCS 20/3a)  (from Ch. 91 1/2, par. 303a)
2    Sec. 3a. Every governmental unit authorized to levy an
3annual tax under any of the provisions of this Act shall,
4before it may levy such tax, establish a 7 member community
5mental health board who shall administer this Act. Such board
6shall be appointed by the chairman of the governing body of a
7county, the mayor of a city, the president of a village, the
8president of an incorporated town, or the supervisor of a
9township, as the case may be, with the advice and consent of
10the governing body of such county, city, village, incorporated
11town or the town board of trustees of any township, except in
12any county with a county executive form of government, if
13applicable, the county executive shall appoint the board with
14the advice and consent of the county board. Members of the
15community mental health board shall be residents of the
16government unit and, as nearly as possible, be representative
17of interested groups of the community such as local health
18departments, medical societies, local comprehensive health
19planning agencies, hospital boards, lay associations concerned
20with mental health, developmental disabilities and substance
21abuse, and individuals with professional or lived expertise in
22mental health, developmental disabilities, and substance abuse
23as well as the general public. General public representation
24may also be considered for appointment when there are gaps in
25board duties and qualifications that cannot be filled from the

 

 

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1above stated categories. Only one member shall be a member of
2the governing body, with the term of membership on the board to
3run concurrently with the elected term of the member. The
4chairman of the governing body may, upon the request of the
5community mental health board, appoint 2 additional members to
6the community mental health board. No member of the community
7mental health board may be a full-time or part-time employee
8of the Department of Human Services or a board member,
9employee or any other individual receiving compensation from
10any facility or service operating under contract to the board.
11If a successful referendum is held under Section 5 of this Act,
12all members of such board shall be appointed within 60 days
13after the local election authority certifies the passage of
14the referendum. If a community mental health board has been
15established by a county with a population of less than 500,000
16and the community mental health board is funded in whole or in
17part by a special mental health sales tax described in
18paragraph (4) of subsection (a) of Section 5-1006.5 of the
19Counties Code, the largest municipality in the county with at
20least 125,000 residents may appoint 2 additional members to
21the board. The members shall be appointed by the mayor of the
22municipality with the advice and consent of the municipality's
23governing body.
24    Home rule units are exempt from this Act. However, they
25may, by ordinance, adopt the provisions of this Act, or any
26portion thereof, that they may deem advisable.

 

 

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1    The tax rate set forth in Section 4 may be levied by any
2non-home rule unit only pursuant to the approval by the voters
3at a referendum. Such referendum may have been held at any time
4subsequent to the effective date of the Community Mental
5Health Act.
6(Source: P.A. 103-274, eff. 1-1-24; 103-565, eff. 11-17-23.)
 
7    (405 ILCS 20/3b)  (from Ch. 91 1/2, par. 303b)
8    Sec. 3b. The term of office of each member of the community
9mental health board shall be for 4 years, provided, however,
10that of the members first appointed, 2 shall be appointed for a
11term of 2 years, 2 for a term of 3 years and 3 for a term of 4
12years. All terms shall be measured from the first day of the
13month of appointment. Vacancies shall be filled for the
14unexpired term in the same manner as original appointments
15with the advice of the community mental health board, who may
16establish a policy and procedure for the acceptance and review
17of applications from interested residents prior to making a
18recommendation to the appointing authority. A community mental
19health board may provide advice to the governing body and may
20establish a policy and procedure for the acceptance and review
21of applications from interested residents prior to making a
22recommendation to the appointing authority.
23(Source: P.A. 103-274, eff. 1-1-24.)
 
24    (405 ILCS 20/3e)  (from Ch. 91 1/2, par. 303e)

 

 

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1    Sec. 3e. Board's powers and duties.
2    (1) Every community mental health board shall, within 30
3days after members are first appointed and within 30 days
4after members are appointed or reappointed upon the expiration
5of a member's term, meet and organize, by the election of one
6of its number as president and one as secretary and such other
7officers as it may deem necessary. It shall make rules and
8regulations concerning the rendition or operation of services
9and facilities which it directs, supervises or funds, not
10inconsistent with the provisions of this Act. It shall:
11        (a) Hold a meeting prior to July 1 of each year at
12    which officers shall be elected for the ensuing year
13    beginning July 1. If the community mental health board has
14    already held or scheduled an election to take place prior
15    to July 1, an additional election is not required on the
16    basis of the appointment or reappointment of a member to
17    the community mental health board;
18        (b) Hold meetings at least quarterly;
19        (c) Hold special meetings upon a written request
20    signed by at least 2 members and filed with the secretary;
21        (d) Review and evaluate community mental health
22    services and facilities, including services and facilities
23    for the treatment of alcoholism, drug addiction,
24    developmental disabilities, and intellectual
25    disabilities;
26        (e) Authorize the disbursement of money from the

 

 

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1    community mental health fund for payment for the ordinary
2    and contingent expenses of the board;
3        (f) Submit to the appointing officer and the members
4    of the governing body a written plan for a program of
5    community mental health services and facilities for
6    persons with a mental illness, a developmental disability,
7    or a substance use disorder. Such plan shall be for the
8    ensuing 12 month period. In addition, a plan shall be
9    developed for the ensuing 3 year period and such plan
10    shall be reviewed at the end of every 12 month period and
11    shall be modified as deemed advisable; .
12        (g) Within amounts appropriated therefor, execute such
13    programs and maintain such services and facilities as may
14    be authorized under such appropriations, including amounts
15    appropriated under bond issues, if any;
16        (h) Publish the annual budget and report within 180
17    120 days after the end of the fiscal year in a newspaper
18    distributed within the jurisdiction of the board, or, if
19    no newspaper is published within the jurisdiction of the
20    board, then one published in the county, or, if no
21    newspaper is published in the county, then in a newspaper
22    having general circulation within the jurisdiction of the
23    board. The report shall show the condition of its trust of
24    that year, the sums of money received from all sources,
25    giving the name of any donor, how all monies have been
26    expended and for what purpose, and such other statistics

 

 

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1    and program information in regard to the work of the board
2    as it may deem of general interest. A copy of the budget
3    and the annual report shall be made available to the
4    Department of Human Services and to members of the General
5    Assembly whose districts include any part of the
6    jurisdiction of such board. The names of all employees,
7    consultants, and other personnel shall be set forth along
8    with the amounts of money received;
9        (i) Consult with other appropriate private and public
10    agencies in the development of local plans for the most
11    efficient delivery of mental health, developmental
12    disabilities, and substance use disorder services. The
13    Board is authorized to join and to participate in the
14    activities of associations organized for the purpose of
15    promoting more efficient and effective services and
16    programs;
17        (j) Have the authority to review and comment on all
18    applications for grants by any person, corporation, or
19    governmental unit providing services within the
20    geographical area of the board which provides mental
21    health facilities and services, including services for the
22    person with a mental illness, a developmental disability,
23    or a substance use disorder. The board may require funding
24    applicants to send a copy of their funding application to
25    the board at the time such application is submitted to the
26    Department of Human Services or to any other local, State

 

 

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1    or federal funding source or governmental agency. Within
2    60 days of the receipt of any application, the board shall
3    submit its review and comments to the Department of Human
4    Services or to any other appropriate local, State or
5    federal funding source or governmental agency. A copy of
6    the review and comments shall be submitted to the funding
7    applicant. Within 60 days thereafter, the Department of
8    Human Services or any other appropriate local or State
9    governmental agency shall issue a written response to the
10    board and the funding applicant. The Department of Human
11    Services or any other appropriate local or State
12    governmental agency shall supply any community mental
13    health board such information about purchase-of-care
14    funds, State facility utilization, and costs in its
15    geographical area as the board may request provided that
16    the information requested is for the purpose of the
17    Community Mental Health Board complying with the
18    requirements of Section 3f, subsection (f) of this Act;
19        (k) Perform such other acts as may be necessary or
20    proper to carry out the purposes of this Act.
21    (2) The community mental health board has the following
22powers:
23        (a) The board may enter into multiple-year contracts
24    for rendition or operation of services, facilities and
25    educational programs.
26        (b) The board may arrange through intergovernmental

 

 

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1    agreements or intragovernmental agreements or both for the
2    rendition of services and operation of facilities by other
3    agencies or departments of the governmental unit or county
4    in which the governmental unit is located with the
5    approval of the governing body.
6        (c) To employ, establish compensation for, and set
7    policies for its personnel, including legal counsel, as
8    may be necessary to carry out the purposes of this Act and
9    prescribe the duties thereof. The board may enter into
10    multiple-year employment contracts as may be necessary for
11    the recruitment and retention of personnel and the proper
12    functioning of the board.
13        (d) The board may enter into multiple-year joint
14    agreements, which shall be written, with other mental
15    health boards and boards of health to provide jointly
16    agreed upon community mental health facilities and
17    services and to pool such funds as may be deemed necessary
18    and available for this purpose.
19        (e) The board may organize a not-for-profit
20    corporation for the purpose of providing direct recipient
21    services. Such corporations shall have, in addition to all
22    other lawful powers, the power to contract with persons to
23    furnish services for recipients of the corporation's
24    facilities, including psychiatrists and other physicians
25    licensed in this State to practice medicine in all of its
26    branches. Such physicians shall be considered independent

 

 

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1    contractors, and liability for any malpractice shall not
2    extend to such corporation, nor to the community mental
3    health board, except for gross negligence in entering into
4    such a contract.
5        (f) The board shall not operate any direct recipient
6    services for more than a 2-year period when such services
7    are being provided in the governmental unit, but shall
8    encourage, by financial support, the development of
9    private agencies to deliver such needed services, pursuant
10    to regulations of the board.
11        (g) Where there are multiple boards within the same
12    planning area, as established by the Department of Human
13    Services, services may be purchased through a single
14    delivery system. In such areas, a coordinating body with
15    representation from each board shall be established to
16    carry out the service functions of this Act. In the event
17    any such coordinating body purchases or improves real
18    property, such body shall first obtain the approval of the
19    governing bodies of the governmental units in which the
20    coordinating body is located.
21        (h) The board may enter into multiple-year joint
22    agreements with other governmental units located within
23    the geographical area of the board. Such agreements shall
24    be written and shall provide for the rendition of services
25    by the board to the residents of such governmental units.
26        (i) The board may enter into multiple-year joint

 

 

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1    agreements with federal, State, and local governments,
2    including the Department of Human Services or any other
3    appropriate local or State governmental agency, whereby
4    the board will provide certain services. All such joint
5    agreements must provide for the exchange of relevant data.
6    However, nothing in this Act shall be construed to permit
7    the abridgement of the confidentiality of patient records.
8        (j) The board may receive gifts from private sources
9    for purposes not inconsistent with the provisions of this
10    Act.
11        (k) The board may receive federal Federal, State, and
12    local funds for purposes not inconsistent with the
13    provisions of this Act.
14        (l) The board may establish scholarship programs. Such
15    programs shall require equivalent service or reimbursement
16    pursuant to regulations of the board.
17        (m) The board may sell, rent, or lease real property
18    for purposes consistent with this Act.
19        (n) The board may: (i) own real property, lease real
20    property as lessee, or acquire real property by purchase,
21    construction, lease-purchase agreement, or otherwise; (ii)
22    take title to the property in the board's name; (iii)
23    borrow money and issue debt instruments, mortgages,
24    purchase-money mortgages, and other security instruments
25    with respect to the property; and (iv) maintain, repair,
26    remodel, or improve the property. All of these activities

 

 

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1    must be for purposes consistent with this Act as may be
2    reasonably necessary for the housing and proper
3    functioning of the board. The board may use moneys in the
4    Community Mental Health Fund for these purposes.
5        (o) The board may organize a not-for-profit
6    corporation (i) for the purpose of raising money to be
7    distributed by the board for providing community mental
8    health services and facilities for the treatment of
9    alcoholism, drug addiction, developmental disabilities,
10    and intellectual disabilities or (ii) for other purposes
11    not inconsistent with this Act.
12        (p) The board may fix a fiscal year for the board.
13        (q) The board has the responsibility to set, maintain,
14    and implement the budget.
15        (r) The board may establish professional incentive
16    programs for the purposes of workforce development and
17    retention that may include education assistance, student
18    loan repayment, professional certification and licensure
19    assistance, and internship stipends.
20    Every board shall be subject to the requirements under the
21Freedom of Information Act and the Open Meetings Act.
22(Source: P.A. 103-274, eff. 1-1-24; revised 1-20-24.)
 
23    (405 ILCS 20/3f)  (from Ch. 91 1/2, par. 303f)
24    Sec. 3f. Annually, each community mental health board
25shall prepare and submit, for informational purposes in the

 

 

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1appropriations process, to the appointing officer and
2governing body referred to in Section 3a: (a) an annual budget
3showing the estimated receipts and intended disbursements
4pursuant to this Act for the fiscal year immediately following
5the date the budget is submitted, which date must be at least
630 days prior to the start of the fiscal year, and (b) an
7annual report detailing the income received and disbursements
8made pursuant to this Act during the fiscal year just
9preceding the date the annual report is submitted, which date
10must be within 180 90 days of the end close of that fiscal
11year. Such report shall also include those matters set forth
12in Section 8 of this Act.
13(Source: P.A. 95-336, eff. 8-21-07.)
 
14    (405 ILCS 20/4)  (from Ch. 91 1/2, par. 304)
15    Sec. 4. In order to provide the necessary funds or to
16supplement existing funds for such community mental health
17facilities and services, including facilities and services for
18the person with a developmental disability or a substance use
19disorder, the governing body of any governmental unit, subject
20to the provisions of Section 5, may levy an annual tax of not
21to exceed .15% upon all of the taxable property in such
22governmental unit at the value thereof, as equalized or
23assessed by the Department of Revenue. Such tax shall be
24levied and collected in the same manner as other governmental
25unit taxes, but shall not be included in any limitation

 

 

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1otherwise prescribed as to the rate or amount of governmental
2unit taxes, but shall be in addition thereto and in excess
3thereof.
4    An annual tax levied by any governmental unit under this
5Section is separate and distinct from all other property taxes
6levied by that governmental unit and (1) shall not be
7considered an increase for purposes of the application of the
8Truth in Taxation Law and its requirements and (2) shall not be
9subject to the Property Tax Extension Limitation Law.
10    When collected, such tax shall be paid into a special fund
11to be designated as the "Community Mental Health Fund" which
12shall, upon authorization by the appropriate governmental
13unit, be administered by the community mental health board and
14used only for the purposes specified in this Act. Nothing
15contained herein shall in any way preclude the use of other
16funds available for such purposes under any existing Federal,
17State or local statute. Interest earned from moneys deposited
18in this Fund shall only be used for purposes which are
19authorized by this Act.
20    In any city, village, incorporated town, or township which
21levies a tax for the purpose of providing community mental
22health facilities and services and part or all of such city,
23village, incorporated town, or township is in a county or
24township, as the case may be, which levies a tax to provide
25community mental health facilities and services under the
26provisions of this Act, such county or township, as the case

 

 

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1may be, shall pay to such city, village, incorporated town, or
2township, as the case may be, the entire amount collected from
3taxes under this Section on property subject to a tax which any
4city, village, incorporated town, or township thereof levies
5to provide community mental health facilities and services.
6    Whenever any city, village, incorporated town, or township
7receives any payments from a county or township as provided
8above, such city, village, incorporated town, or township
9shall reduce and abate from the tax levied by the authority of
10this Section a rate which would produce an amount equal to the
11amount received from such county or township.
12(Source: P.A. 95-336, eff. 8-21-07.)
 
13    (405 ILCS 20/5)  (from Ch. 91 1/2, par. 305)
14    Sec. 5. (a) When the governing body of a governmental unit
15passes a resolution as provided in Section 4 asking that an
16annual tax may be levied for the purpose of providing such
17mental health facilities and services, including facilities
18and services for the person with a developmental disability or
19a substance use disorder, in the community and so instructs
20the clerk of the governmental unit such clerk shall certify
21the proposition to the proper election officials for
22submission at a regular election in accordance with the
23general election law. The proposition shall be in
24substantially the following form:
25----------------------------

 

 

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1    Shall............  (governmental
2unit) levy an annual tax
3not to exceed of (no not                  YES
4more than .15%) for the purpose
5of providing community mental
6health facilities and        --------------------------------
7services including facilities
8and services for persons  with
9a developmental disability or a           NO
10substance use disorder?
11-------------------------------------------------------------
12    (a-5) In addition, the ballot for any proposition
13submitted pursuant to this Section shall have printed thereon,
14but not as part of the proposition submitted, only the
15following supplemental information (which shall be supplied to
16the election authority by the taxing district) in
17substantially the following form:
18        (1) The approximate amount of taxes extendable at the
19    most recently extended limiting rate is $...., and the
20    approximate amount of taxes extendable if the proposition
21    is approved is $....
22        (2) For the .... (insert the first levy year for which
23    the new rate or increase limiting rate will be applicable)
24    levy year the approximate amount of the additional tax
25    extendable against property containing a single family
26    residence and having a fair market value at the time of the

 

 

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1    referendum of $100,000 is estimated to be $....
2    If a proposition contains the language in substantially
3the form provided above the referendum is valid
4notwithstanding any other provision of the law. If the
5governmental unit is also subject to the Property Tax
6Extension Limitation Law, then the proposition shall also
7comply with the Property Tax Extension Limitation Law.
8Notwithstanding any provision of this subsection, any
9referendum imposing an annual tax on or after January 1, 1994
10and prior to the effective date of this amendatory Act of the
11103rd General Assembly that complies with subsection (a) is
12hereby validated.
13    (b) If a majority of all the votes cast upon the
14proposition are for the levy of such tax, the governing body of
15such governmental unit shall thereafter annually levy a tax
16not to exceed the rate set forth in Section 4. Thereafter, the
17governing body shall in the annual appropriation bill
18appropriate from such funds such sum or sums of money as may be
19deemed necessary by the community mental health board, based
20upon the community mental health board's budget, the board's
21annual mental health report, and the local mental health plan
22to defray necessary expenses and liabilities in providing for
23such community mental health facilities and services.
24    (c) If the governing body of a governmental unit levies a
25tax under Section 4 of this Act and the rate specified in the
26proposition under subsection (a) of this Section is less than

 

 

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10.15%, then the governing body of the governmental unit may,
2upon referendum approval, increase that rate to not more than
30.15%. The governing body shall instruct the clerk of the
4governmental unit to certify the proposition to the proper
5election officials for submission at a regular election in
6accordance with the general election law. The proposition
7shall be in the following form:
8        "Shall the tax imposed by (governmental unit) for the
9    purpose of providing community mental health facilities
10    and services, including facilities and services for
11    persons with a developmental disability or substance use
12    disorder be increased to (not more than 0.15%)?"
13    If a majority of all the votes cast upon the proposition
14are for the increase of the tax, then the governing body of the
15governmental unit may thereafter annually levy a tax not to
16exceed the rate set forth in the referendum question. Nothing
17in this Section prevents a governmental unit from levying less
18than the amount approved by the voters via referendum in any
19given year or varying the amount levied from year to year as
20approved by the governmental unit.
21(Source: P.A. 102-839, eff. 5-13-22; 102-935, eff. 7-1-22;
22103-154, eff. 6-30-23; 103-274, eff. 1-1-24; 103-565, eff.
2311-17-23.)
 
24    (405 ILCS 20/6)  (from Ch. 91 1/2, par. 306)
25    Sec. 6. Whenever the governing body of any governmental

 

 

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1unit has not provided the community mental health facilities
2and services provided in Section 2 and levied the tax provided
3in Section 4 and a petition signed by electors of the
4governmental unit equal in number to at least 10% of the total
5votes cast for the office which received the greatest total
6number of votes at the last preceding general governmental
7unit election is presented to the clerk of the governmental
8unit requesting the establishment and maintenance of such
9community mental health facilities and services, including
10facilities and services for the person with a developmental
11disability or a substance use disorder, for residents thereof
12and the levy of such an annual tax therefor, the governing body
13of the governmental unit, subject to the provisions of Section
147, shall establish and maintain such community mental health
15facilities and services and shall levy such an annual tax of
16not to exceed .15% upon all of the taxable property in such
17governmental unit at the value thereof, as equalized or
18assessed by the Department of Revenue. Such tax shall be
19levied and collected in the same manner as other governmental
20unit taxes, but shall not be included in any limitation
21otherwise prescribed as to the rate or amount of governmental
22unit taxes, but shall be in addition thereto and in excess
23thereof.
24    An annual tax levied by any governmental unit under this
25Section is separate and distinct from all other property taxes
26levied by that governmental unit and (1) shall not be

 

 

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1considered an increase for purposes of the application of the
2Truth in Taxation Law and its requirements and (2) shall not be
3subject to the Property Tax Extension Limitation Law.
4    When collected, such tax shall be paid into a special fund
5to be designated as the "Community Mental Health Fund" which
6shall, upon authorization by the appropriate governmental
7unit, be administered by the community mental health board and
8used only for the purposes specified in this Act. Nothing
9contained herein shall in any way preclude the use of other
10funds available for such purposes under any existing Federal,
11State or local statute. Interest earned from moneys deposited
12in this Fund shall only be used for purposes which are
13authorized by this Act.
14    In any city, village, incorporated town, or township which
15levies a tax for the purpose of providing community mental
16health facilities and services and part or all of such city,
17village, incorporated town, or township is in a county or
18township, as the case may be, which levies a tax to provide
19community mental health facilities and services under the
20provisions of this Act, such county or township, as the case
21may be, shall pay to such city, village, incorporated town, or
22township, as the case may be, the entire amount collected from
23taxes under this Section on property subject to a tax which any
24city, village, incorporated town, or township thereof levies
25to provide community mental health facilities and services.
26    Whenever any city, village, incorporated town, or township

 

 

10300HB4951sam002- 1299 -LRB103 38094 HLH 74177 a

1receives any payments from a county or township as provided
2above, such city, village, incorporated town, or township
3shall reduce and abate from the tax levied by the authority of
4this Section a rate which would produce an amount equal to the
5amount received from such county or township.
6(Source: P.A. 95-336, eff. 8-21-07.)
 
7    (405 ILCS 20/7)  (from Ch. 91 1/2, par. 307)
8    Sec. 7. When the petition provided for in Section 6 is
9presented to the clerk of the governmental unit requesting the
10establishment and maintenance of such mental health facilities
11and services for residents of the community and the levy of
12such an annual tax therefor, the clerk of the governmental
13unit shall certify to the proper election officials the
14proposition for the levy of such tax which shall be submitted
15at a regular election in accordance with the general election
16law. The proposition shall be in substantially the following
17form:
18--------------------------------------------------------
19    Shall....................
20(governmental unit) establish and
21maintain community mental health           YES
22facilities and services including
23facilities and services for the        ----------------------
24person with a developmental
25disability or a substance                  NO

 

 

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1use disorder and levy therefor an
2annual tax of not to exceed .15%?
3-------------------------------------------------------------
4    In addition to certification of the question, the clerk of
5the governmental unit shall prepare and submit to the proper
6elected officials the following language which shall have
7printed thereon, but not as part of the proposition submitted,
8only the following supplemental information (which shall be
9supplied to the election authority by the taxing district) in
10substantially the following form:
11        (1) The approximate amount of taxes extendable at the
12    most recently extended limiting rate is $...., and the
13    approximate amount of taxes extendable if the proposition
14    is approved is $....
15        (2) For the .... (insert the first levy year for which
16    the new rate or increase limiting rate will be applicable)
17    levy year the approximate amount of the additional tax
18    extendable against property containing a single family
19    residence and having a fair market value at the time of the
20    referendum of $100,000 is estimated to be $....
21    If a proposition contains the language in substantially
22the form provided in paragraphs (1) and (2), the referendum is
23valid notwithstanding any other provision of the law.
24    If a majority of all the votes cast upon the proposition
25are in favor thereof, the governing body of such governmental
26unit shall establish and maintain such community mental health

 

 

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1facilities and services and shall annually levy such tax.
2Thereafter, the governing body shall in the annual
3appropriation bill appropriate from such funds such sum or
4sums of money as may be deemed necessary, based upon the
5community mental health board's budget, the board's annual
6mental health report, and the board's plan to defray necessary
7expenses and liabilities in providing for such community
8mental health facilities and services.
9    Nothing in this Section prevents a governmental unit from
10levying less than the amount approved by the voters via
11referendum in any given year or varying the amount levied from
12year to year as approved by the governmental unit.
13(Source: P.A. 95-336, eff. 8-21-07.)
 
14    Section 175-97. Retroactivity. The changes made by this
15Article apply to referenda creating community mental health
16boards, including community mental health boards located in
17counties that have adopted a county executive form of
18government under Division 2-5 of the Counties Code, to levy an
19annual tax for the establishment and maintenance of mental
20health facilities and services for residents of the community
21that were approved or validated on or after January 1, 2020 and
22to referenda that are approved on or after the effective date
23of this Article.
 
24
ARTICLE 999.

 

 

 

10300HB4951sam002- 1302 -LRB103 38094 HLH 74177 a

1    Section 999-95. No acceleration or delay. Where this Act
2makes changes in a statute that is represented in this Act by
3text that is not yet or no longer in effect (for example, a
4Section represented by multiple versions), the use of that
5text does not accelerate or delay the taking effect of (i) the
6changes made by this Act or (ii) provisions derived from any
7other Public Act.
 
8    Section 999-97. Severability. The provisions of this Act
9are severable under Section 1.31 of the Statute on Statutes.
 
10    Section 999-99. Effective date. This Act takes effect upon
11becoming law, except that Article 65 takes effect July 1,
122024, Articles 20, 25, 50, 75, 80,95, 125, 135, 140, and 160
13take effect January 1, 2025, and Article 150 takes effect
14February 1, 2025.".