Sen. Donald P. DeWitte

Filed: 3/24/2023

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1150

2    AMENDMENT NO. ______. Amend Senate Bill 1150 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Use Tax Act is amended by changing
5Sections 3-5, 3-10, and 9 as follows:
 
6    (35 ILCS 105/3-5)
7    Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9    (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16    (2) Personal property purchased by a not-for-profit

 

 

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

 

 

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1limited liability company is organized and operated
2exclusively for educational purposes. On and after July 1,
31987, however, no entity otherwise eligible for this exemption
4shall make tax-free purchases unless it has an active
5exemption identification number issued by the Department.
6    (5) Until July 1, 2003, a passenger car that is a
7replacement vehicle to the extent that the purchase price of
8the car is subject to the Replacement Vehicle Tax.
9    (6) Until July 1, 2003 and beginning again on September 1,
102004 through August 30, 2014, graphic arts machinery and
11equipment, including repair and replacement parts, both new
12and used, and including that manufactured on special order,
13certified by the purchaser to be used primarily for graphic
14arts production, and including machinery and equipment
15purchased for lease. Equipment includes chemicals or chemicals
16acting as catalysts but only if the chemicals or chemicals
17acting as catalysts effect a direct and immediate change upon
18a graphic arts product. Beginning on July 1, 2017, graphic
19arts machinery and equipment is included in the manufacturing
20and assembling machinery and equipment exemption under
21paragraph (18).
22    (7) Farm chemicals.
23    (8) Legal tender, currency, medallions, or gold or silver
24coinage issued by the State of Illinois, the government of the
25United States of America, or the government of any foreign
26country, and bullion.

 

 

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

 

 

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1farming equipment that is installed or purchased to be
2installed on farm machinery and equipment including, but not
3limited to, tractors, harvesters, sprayers, planters, seeders,
4or spreaders. Precision farming equipment includes, but is not
5limited to, soil testing sensors, computers, monitors,
6software, global positioning and mapping systems, and other
7such equipment.
8    Farm machinery and equipment also includes computers,
9sensors, software, and related equipment used primarily in the
10computer-assisted operation of production agriculture
11facilities, equipment, and activities such as, but not limited
12to, the collection, monitoring, and correlation of animal and
13crop data for the purpose of formulating animal diets and
14agricultural chemicals. This item (11) is exempt from the
15provisions of Section 3-90.
16    (12) Until June 30, 2013, fuel and petroleum products sold
17to or used by an air common carrier, certified by the carrier
18to be used for consumption, shipment, or storage in the
19conduct of its business as an air common carrier, for a flight
20destined for or returning from a location or locations outside
21the United States without regard to previous or subsequent
22domestic stopovers.
23    Beginning July 1, 2013, fuel and petroleum products sold
24to or used by an air carrier, certified by the carrier to be
25used for consumption, shipment, or storage in the conduct of
26its business as an air common carrier, for a flight that (i) is

 

 

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

 

 

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1that manufactured on special order, certified by the purchaser
2to be used primarily for photoprocessing, and including
3photoprocessing machinery and equipment purchased for lease.
4    (16) Until July 1, 2028, coal and aggregate exploration,
5mining, off-highway hauling, processing, maintenance, and
6reclamation equipment, including replacement parts and
7equipment, and including equipment purchased for lease, but
8excluding motor vehicles required to be registered under the
9Illinois Vehicle Code. The changes made to this Section by
10Public Act 97-767 apply on and after July 1, 2003, but no claim
11for credit or refund is allowed on or after August 16, 2013
12(the effective date of Public Act 98-456) for such taxes paid
13during the period beginning July 1, 2003 and ending on August
1416, 2013 (the effective date of Public Act 98-456).
15    (17) Until July 1, 2003, distillation machinery and
16equipment, sold as a unit or kit, assembled or installed by the
17retailer, certified by the user to be used only for the
18production of ethyl alcohol that will be used for consumption
19as motor fuel or as a component of motor fuel for the personal
20use of the user, and not subject to sale or resale.
21    (18) Manufacturing and assembling machinery and equipment
22used primarily in the process of manufacturing or assembling
23tangible personal property for wholesale or retail sale or
24lease, whether that sale or lease is made directly by the
25manufacturer or by some other person, whether the materials
26used in the process are owned by the manufacturer or some other

 

 

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1person, or whether that sale or lease is made apart from or as
2an incident to the seller's engaging in the service occupation
3of producing machines, tools, dies, jigs, patterns, gauges, or
4other similar items of no commercial value on special order
5for a particular purchaser. The exemption provided by this
6paragraph (18) includes production related tangible personal
7property, as defined in Section 3-50, purchased on or after
8July 1, 2019. The exemption provided by this paragraph (18)
9does not include machinery and equipment used in (i) the
10generation of electricity for wholesale or retail sale; (ii)
11the generation or treatment of natural or artificial gas for
12wholesale or retail sale that is delivered to customers
13through pipes, pipelines, or mains; or (iii) the treatment of
14water for wholesale or retail sale that is delivered to
15customers through pipes, pipelines, or mains. The provisions
16of Public Act 98-583 are declaratory of existing law as to the
17meaning and scope of this exemption. Beginning on July 1,
182017, the exemption provided by this paragraph (18) includes,
19but is not limited to, graphic arts machinery and equipment,
20as defined in paragraph (6) of this Section.
21    (19) Personal property delivered to a purchaser or
22purchaser's donee inside Illinois when the purchase order for
23that personal property was received by a florist located
24outside Illinois who has a florist located inside Illinois
25deliver the personal property.
26    (20) Semen used for artificial insemination of livestock

 

 

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1for direct agricultural production.
2    (21) 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 (21) is exempt from the
8provisions of Section 3-90, and the exemption provided for
9under this item (21) applies for all periods beginning May 30,
101995, but no claim for credit or refund is allowed on or after
11January 1, 2008 for such taxes paid during the period
12beginning May 30, 2000 and ending on January 1, 2008.
13    (22) Computers and communications equipment utilized for
14any hospital purpose and equipment used in the diagnosis,
15analysis, or treatment of hospital patients purchased by a
16lessor who leases the equipment, under a lease of one year or
17longer executed or in effect at the time the lessor would
18otherwise be subject to the tax imposed by this Act, to a
19hospital that has been issued an active tax exemption
20identification number by the Department under Section 1g of
21the Retailers' Occupation Tax Act. If the equipment is leased
22in a manner that does not qualify for this exemption or is used
23in any other non-exempt manner, the lessor shall be liable for
24the tax imposed under this Act or the Service Use Tax Act, as
25the case may be, based on the fair market value of the property
26at the time the non-qualifying use occurs. No lessor shall

 

 

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

 

 

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

 

 

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1disaster.
2    (26) Beginning July 1, 1999, game or game birds purchased
3at a "game breeding and hunting preserve area" as that term is
4used in the Wildlife Code. This paragraph is exempt from the
5provisions of Section 3-90.
6    (27) A motor vehicle, as that term is defined in Section
71-146 of the Illinois Vehicle Code, that is donated to a
8corporation, limited liability company, society, association,
9foundation, or institution that is determined by the
10Department to be organized and operated exclusively for
11educational purposes. For purposes of this exemption, "a
12corporation, limited liability company, society, association,
13foundation, or institution organized and operated exclusively
14for educational purposes" means all tax-supported public
15schools, private schools that offer systematic instruction in
16useful branches of learning by methods common to public
17schools and that compare favorably in their scope and
18intensity with the course of study presented in tax-supported
19schools, and vocational or technical schools or institutes
20organized and operated exclusively to provide a course of
21study of not less than 6 weeks duration and designed to prepare
22individuals to follow a trade or to pursue a manual,
23technical, mechanical, industrial, business, or commercial
24occupation.
25    (28) Beginning January 1, 2000, personal property,
26including food, purchased through fundraising events for the

 

 

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1benefit of a public or private elementary or secondary school,
2a group of those schools, or one or more school districts if
3the events are sponsored by an entity recognized by the school
4district that consists primarily of volunteers and includes
5parents and teachers of the school children. This paragraph
6does not apply to fundraising events (i) for the benefit of
7private home instruction or (ii) for which the fundraising
8entity purchases the personal property sold at the events from
9another individual or entity that sold the property for the
10purpose of resale by the fundraising entity and that profits
11from the sale to the fundraising entity. This paragraph is
12exempt from the provisions of Section 3-90.
13    (29) Beginning January 1, 2000 and through December 31,
142001, new or used automatic vending machines that prepare and
15serve hot food and beverages, including coffee, soup, and
16other items, and replacement parts for these machines.
17Beginning January 1, 2002 and through June 30, 2003, machines
18and parts for machines used in commercial, coin-operated
19amusement and vending business if a use or occupation tax is
20paid on the gross receipts derived from the use of the
21commercial, coin-operated amusement and vending machines. This
22paragraph is exempt from the provisions of Section 3-90.
23    (30) Beginning January 1, 2001 and through June 30, 2016,
24food for human consumption that is to be consumed off the
25premises where it is sold (other than alcoholic beverages,
26soft drinks, and food that has been prepared for immediate

 

 

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

 

 

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

 

 

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1have a legal right to claim a refund of that amount from the
2lessor. If, however, that amount is not refunded to the lessee
3for any reason, the lessor is liable to pay that amount to the
4Department. This paragraph is exempt from the provisions of
5Section 3-90.
6    (33) On and after July 1, 2003 and through June 30, 2004,
7the use in this State of motor vehicles of the second division
8with a gross vehicle weight in excess of 8,000 pounds and that
9are subject to the commercial distribution fee imposed under
10Section 3-815.1 of the Illinois Vehicle Code. Beginning on
11July 1, 2004 and through June 30, 2005, the use in this State
12of motor vehicles of the second division: (i) with a gross
13vehicle weight rating in excess of 8,000 pounds; (ii) that are
14subject to the commercial distribution fee imposed under
15Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
16are primarily used for commercial purposes. Through June 30,
172005, this exemption applies to repair and replacement parts
18added after the initial purchase of such a motor vehicle if
19that motor vehicle is used in a manner that would qualify for
20the rolling stock exemption otherwise provided for in this
21Act. For purposes of this paragraph, the term "used for
22commercial purposes" means the transportation of persons or
23property in furtherance of any commercial or industrial
24enterprise, whether for-hire or not.
25    (34) Beginning January 1, 2008, tangible personal property
26used in the construction or maintenance of a community water

 

 

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1supply, as defined under Section 3.145 of the Environmental
2Protection Act, that is operated by a not-for-profit
3corporation that holds a valid water supply permit issued
4under Title IV of the Environmental Protection Act. This
5paragraph is exempt from the provisions of Section 3-90.
6    (35) Beginning January 1, 2010 and continuing through
7December 31, 2024, materials, parts, equipment, components,
8and furnishings incorporated into or upon an aircraft as part
9of the modification, refurbishment, completion, replacement,
10repair, or maintenance of the aircraft. This exemption
11includes consumable supplies used in the modification,
12refurbishment, completion, replacement, repair, and
13maintenance of aircraft, but excludes any materials, parts,
14equipment, components, and consumable supplies used in the
15modification, replacement, repair, and maintenance of aircraft
16engines or power plants, whether such engines or power plants
17are installed or uninstalled upon any such aircraft.
18"Consumable supplies" include, but are not limited to,
19adhesive, tape, sandpaper, general purpose lubricants,
20cleaning solution, latex gloves, and protective films. This
21exemption applies only to the use of qualifying tangible
22personal property by persons who modify, refurbish, complete,
23repair, replace, or maintain aircraft and who (i) hold an Air
24Agency Certificate and are empowered to operate an approved
25repair station by the Federal Aviation Administration, (ii)
26have a Class IV Rating, and (iii) conduct operations in

 

 

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1accordance with Part 145 of the Federal Aviation Regulations.
2The exemption does not include aircraft operated by a
3commercial air carrier providing scheduled passenger air
4service pursuant to authority issued under Part 121 or Part
5129 of the Federal Aviation Regulations. The changes made to
6this paragraph (35) by Public Act 98-534 are declarative of
7existing law. It is the intent of the General Assembly that the
8exemption under this paragraph (35) applies continuously from
9January 1, 2010 through December 31, 2024; however, no claim
10for credit or refund is allowed for taxes paid as a result of
11the disallowance of this exemption on or after January 1, 2015
12and prior to February 5, 2020 (the effective date of Public Act
13101-629) this amendatory Act of the 101st General Assembly.
14    (36) Tangible personal property purchased by a
15public-facilities corporation, as described in Section
1611-65-10 of the Illinois Municipal Code, for purposes of
17constructing or furnishing a municipal convention hall, but
18only if the legal title to the municipal convention hall is
19transferred to the municipality without any further
20consideration by or on behalf of the municipality at the time
21of the completion of the municipal convention hall or upon the
22retirement or redemption of any bonds or other debt
23instruments issued by the public-facilities corporation in
24connection with the development of the municipal convention
25hall. This exemption includes existing public-facilities
26corporations as provided in Section 11-65-25 of the Illinois

 

 

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1Municipal Code. This paragraph is exempt from the provisions
2of Section 3-90.
3    (37) Beginning January 1, 2017 and through December 31,
42026, menstrual pads, tampons, and menstrual cups.
5    (38) Merchandise that is subject to the Rental Purchase
6Agreement Occupation and Use Tax. The purchaser must certify
7that the item is purchased to be rented subject to a rental
8purchase agreement, as defined in the Rental Purchase
9Agreement Act, and provide proof of registration under the
10Rental Purchase Agreement Occupation and Use Tax Act. This
11paragraph is exempt from the provisions of Section 3-90.
12    (39) Tangible personal property purchased by a purchaser
13who is exempt from the tax imposed by this Act by operation of
14federal law. This paragraph is exempt from the provisions of
15Section 3-90.
16    (40) Qualified tangible personal property used in the
17construction or operation of a data center that has been
18granted a certificate of exemption by the Department of
19Commerce and Economic Opportunity, whether that tangible
20personal property is purchased by the owner, operator, or
21tenant of the data center or by a contractor or subcontractor
22of the owner, operator, or tenant. Data centers that would
23have qualified for a certificate of exemption prior to January
241, 2020 had Public Act 101-31 been in effect may apply for and
25obtain an exemption for subsequent purchases of computer
26equipment or enabling software purchased or leased to upgrade,

 

 

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

 

 

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1    and component parts of any of the foregoing, including
2    installation, maintenance, repair, refurbishment, and
3    replacement of qualified tangible personal property to
4    generate, transform, transmit, distribute, or manage
5    electricity necessary to operate qualified tangible
6    personal property; and all other tangible personal
7    property that is essential to the operations of a computer
8    data center. The term "qualified tangible personal
9    property" also includes building materials physically
10    incorporated in to the qualifying data center. To document
11    the exemption allowed under this Section, the retailer
12    must obtain from the purchaser a copy of the certificate
13    of eligibility issued by the Department of Commerce and
14    Economic Opportunity.
15    This item (40) is exempt from the provisions of Section
163-90.
17    (41) Beginning July 1, 2022, breast pumps, breast pump
18collection and storage supplies, and breast pump kits. This
19item (41) is exempt from the provisions of Section 3-90. As
20used in this item (41):
21        "Breast pump" means an electrically controlled or
22    manually controlled pump device designed or marketed to be
23    used to express milk from a human breast during lactation,
24    including the pump device and any battery, AC adapter, or
25    other power supply unit that is used to power the pump
26    device and is packaged and sold with the pump device at the

 

 

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

 

 

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1    more than a breast pump, breast pump collection and
2    storage supplies, a rechargeable battery for operating the
3    breast pump, a breastmilk cooler, bottle stands, ice
4    packs, and a breast pump carrying case; and (2) is
5    pre-packaged as a breast pump kit by the breast pump
6    manufacturer or distributor.
7    (42) (41) Tangible personal property sold by or on behalf
8of the State Treasurer pursuant to the Revised Uniform
9Unclaimed Property Act. This item (42) (41) is exempt from the
10provisions of Section 3-90.
11    (43) Beginning on July 1, 2022, as defined in Section
123-10, food for human consumption that is to be consumed off the
13premises where it is sold (other than alcoholic beverages,
14food consisting of or infused with adult use cannabis, soft
15drinks, and food that has been prepared for immediate
16consumption). This item (43) is exempt from the provisions of
17Section 3-90.
18    (44) Beginning on July 1, 2023, the following items, as
19defined in Section 3-10:
20        (A) prescription and nonprescription medicines, drugs,
21    and medical appliances;
22        (B) products classified as Class III medical devices
23    by the United States Food and Drug Administration that are
24    used for cancer treatment pursuant to a prescription, as
25    well as any accessories and components related to those
26    devices;

 

 

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1        (C) modifications to a motor vehicle for the purpose
2    of rendering it usable by a person with a disability; and
3        (D) insulin, blood sugar testing materials, syringes,
4    and needles used by human diabetics.
5    This item (44) is exempt from the provisions of Section
63-90.
7(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
8101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
96-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22;
10102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026,
11eff. 5-27-22; revised 8-1-22.)
 
12    (35 ILCS 105/3-10)
13    Sec. 3-10. Rate of tax. Unless otherwise provided in this
14Section, the tax imposed by this Act is at the rate of 6.25% of
15either the selling price or the fair market value, if any, of
16the tangible personal property. In all cases where property
17functionally used or consumed is the same as the property that
18was purchased at retail, then the tax is imposed on the selling
19price of the property. In all cases where property
20functionally used or consumed is a by-product or waste product
21that has been refined, manufactured, or produced from property
22purchased at retail, then the tax is imposed on the lower of
23the fair market value, if any, of the specific property so used
24in this State or on the selling price of the property purchased
25at retail. For purposes of this Section "fair market value"

 

 

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1means the price at which property would change hands between a
2willing buyer and a willing seller, neither being under any
3compulsion to buy or sell and both having reasonable knowledge
4of the relevant facts. The fair market value shall be
5established by Illinois sales by the taxpayer of the same
6property as that functionally used or consumed, or if there
7are no such sales by the taxpayer, then comparable sales or
8purchases of property of like kind and character 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, and (iii) 100% of the proceeds of sales
22made thereafter. If, at any time, however, the tax under this
23Act on sales of gasohol is imposed at the rate of 1.25%, then
24the tax imposed by this Act applies to 100% of the proceeds of
25sales of gasohol made during that time.
26    With respect to majority blended ethanol fuel, the tax

 

 

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1imposed by this Act does not apply to the proceeds of sales
2made on or after July 1, 2003 and on or before December 31,
32023 but applies to 100% of the proceeds of sales made
4thereafter.
5    With respect to biodiesel blends with no less than 1% and
6no more than 10% biodiesel, the tax imposed by this Act applies
7to (i) 80% of the proceeds of sales made on or after July 1,
82003 and on or before December 31, 2018 and (ii) 100% of the
9proceeds of sales made after December 31, 2018 and before
10January 1, 2024. On and after January 1, 2024 and on or before
11December 31, 2030, the taxation of biodiesel, renewable
12diesel, and biodiesel blends shall be as provided in Section
133-5.1. If, at any time, however, the tax under this Act on
14sales of biodiesel blends with no less than 1% and no more than
1510% biodiesel is imposed at the rate of 1.25%, then the tax
16imposed by this Act applies to 100% of the proceeds of sales of
17biodiesel blends with no less than 1% and no more than 10%
18biodiesel made during that time.
19    With respect to biodiesel and biodiesel blends with more
20than 10% but no more than 99% biodiesel, the tax imposed by
21this Act does not apply to the proceeds of sales made on or
22after July 1, 2003 and on or before December 31, 2023. On and
23after January 1, 2024 and on or before December 31, 2030, the
24taxation of biodiesel, renewable diesel, and biodiesel blends
25shall be as provided in Section 3-5.1.
26    Until July 1, 2022 and beginning again on July 1, 2023,

 

 

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1with respect to food for human consumption that is to be
2consumed off the premises where it is sold (other than
3alcoholic beverages, food consisting of or infused with adult
4use cannabis, soft drinks, and food that has been prepared for
5immediate consumption), the tax is imposed at the rate of 1%.
6Beginning on July 1, 2022 and until July 1, 2023, with respect
7to food for human consumption that is to be consumed off the
8premises where it is sold (other than alcoholic beverages,
9food consisting of or infused with adult use cannabis, soft
10drinks, and food that has been prepared for immediate
11consumption), the tax is imposed at the rate of 0%.
12    Until July 1, 2023, with With respect to prescription and
13nonprescription medicines, drugs, medical appliances, products
14classified as Class III medical devices by the United States
15Food and Drug Administration that are used for cancer
16treatment pursuant to a prescription, as well as any
17accessories and components related to those devices,
18modifications to a motor vehicle for the purpose of rendering
19it usable by a person with a disability, and insulin, blood
20sugar testing materials, syringes, and needles used by human
21diabetics, the tax is imposed at the rate of 1%. For the
22purposes of this Section, until September 1, 2009: the term
23"soft drinks" means any complete, finished, ready-to-use,
24non-alcoholic drink, whether carbonated or not, including, but
25not limited to, soda water, cola, fruit juice, vegetable
26juice, carbonated water, and all other preparations commonly

 

 

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

 

 

10300SB1150sam001- 29 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 30 -LRB103 05594 HLH 60012 a

1Act 98-122) this amendatory Act of the 98th General Assembly,
2"prescription and nonprescription medicines and drugs"
3includes medical cannabis purchased from a registered
4dispensing organization under the Compassionate Use of Medical
5Cannabis Program Act.
6    As used in this Section, "adult use cannabis" means
7cannabis subject to tax under the Cannabis Cultivation
8Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
9and does not include cannabis subject to tax under the
10Compassionate Use of Medical Cannabis Program Act.
11    If the property that is purchased at retail from a
12retailer is acquired outside Illinois and used outside
13Illinois before being brought to Illinois for use here and is
14taxable under this Act, the "selling price" on which the tax is
15computed shall be reduced by an amount that represents a
16reasonable allowance for depreciation for the period of prior
17out-of-state use.
18(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
19102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
204-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
21102-700, Article 65, Section 65-5, eff. 4-19-22; revised
225-27-22.)
 
23    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
24    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
25and trailers that are required to be registered with an agency

 

 

10300SB1150sam001- 31 -LRB103 05594 HLH 60012 a

1of this State, each retailer required or authorized to collect
2the tax imposed by this Act shall pay to the Department the
3amount of such tax (except as otherwise provided) at the time
4when he is required to file his return for the period during
5which such tax was collected, less a discount of 2.1% prior to
6January 1, 1990, and 1.75% on and after January 1, 1990, or $5
7per calendar year, whichever is greater, which is allowed to
8reimburse the retailer for expenses incurred in collecting the
9tax, keeping records, preparing and filing returns, remitting
10the tax and supplying data to the Department on request. When
11determining the discount allowed under this Section, retailers
12shall include the amount of tax that would have been due at the
136.25% rate but for the 1.25% rate imposed on sales tax holiday
14items under Public Act 102-700 this amendatory Act of the
15102nd General Assembly. The discount under this Section is not
16allowed for the 1.25% portion of taxes paid on aviation fuel
17that is subject to the revenue use requirements of 49 U.S.C.
1847107(b) and 49 U.S.C. 47133. When determining the discount
19allowed under this Section, retailers shall include the amount
20of tax that would have been due at the 1% rate but for the 0%
21rate imposed under Public Act 102-700 this amendatory Act of
22the 102nd General Assembly. In the case of retailers who
23report and pay the tax on a transaction by transaction basis,
24as provided in this Section, such discount shall be taken with
25each such tax remittance instead of when such retailer files
26his periodic return. The discount allowed under this Section

 

 

10300SB1150sam001- 32 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 33 -LRB103 05594 HLH 60012 a

1where it is sold (other than alcoholic beverages, food
2consisting of or infused with adult use cannabis, soft drinks,
3and food that has been prepared for immediate consumption)
4which were received during the preceding calendar month,
5quarter, or year, as appropriate, and upon which tax would
6have been due but for the 0% rate imposed under Public Act
7102-700 this amendatory Act of the 102nd General Assembly. The
8return shall also include the amount of tax that would have
9been due on food for human consumption that is to be consumed
10off the premises where it is sold (other than alcoholic
11beverages, food consisting of or infused with adult use
12cannabis, soft drinks, and food that has been prepared for
13immediate consumption) but for the 0% rate imposed under
14Public Act 102-700 this amendatory Act of the 102nd General
15Assembly.
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

 

 

10300SB1150sam001- 34 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 35 -LRB103 05594 HLH 60012 a

1    may require.
2    Each retailer required or authorized to collect the tax
3imposed by this Act on aviation fuel sold at retail in this
4State during the preceding calendar month shall, instead of
5reporting and paying tax on aviation fuel as otherwise
6required by this Section, report and pay such tax on a separate
7aviation fuel tax return. The requirements related to the
8return shall be as otherwise provided in this Section.
9Notwithstanding any other provisions of this Act to the
10contrary, retailers collecting tax on aviation fuel shall file
11all aviation fuel tax returns and shall make all aviation fuel
12tax payments by electronic means in the manner and form
13required by the Department. For purposes of this Section,
14"aviation fuel" means jet fuel and aviation gasoline.
15    If a taxpayer fails to sign a return within 30 days after
16the proper notice and demand for signature by the Department,
17the return shall be considered valid and any amount shown to be
18due on the return shall be deemed assessed.
19    Notwithstanding any other provision of this Act to the
20contrary, retailers subject to tax on cannabis shall file all
21cannabis tax returns and shall make all cannabis tax payments
22by electronic means in the manner and form required by the
23Department.
24    Beginning October 1, 1993, a taxpayer who has an average
25monthly tax liability of $150,000 or more shall make all
26payments required by rules of the Department by electronic

 

 

10300SB1150sam001- 36 -LRB103 05594 HLH 60012 a

1funds transfer. Beginning October 1, 1994, a taxpayer who has
2an average monthly tax liability of $100,000 or more shall
3make all payments required by rules of the Department by
4electronic funds transfer. Beginning October 1, 1995, a
5taxpayer who has an average monthly tax liability of $50,000
6or more shall make all payments required by rules of the
7Department by electronic funds transfer. Beginning October 1,
82000, a taxpayer who has an annual tax liability of $200,000 or
9more shall make all payments required by rules of the
10Department by electronic funds transfer. The term "annual tax
11liability" shall be the sum of the taxpayer's liabilities
12under this Act, and under all other State and local occupation
13and use tax laws administered by the Department, for the
14immediately preceding calendar year. The term "average monthly
15tax liability" means the sum of the taxpayer's liabilities
16under this Act, and under all other State and local occupation
17and use tax laws administered by the Department, for the
18immediately preceding calendar year divided by 12. Beginning
19on October 1, 2002, a taxpayer who has a tax liability in the
20amount set forth in subsection (b) of Section 2505-210 of the
21Department of Revenue Law shall make all payments required by
22rules of the Department by electronic funds transfer.
23    Before August 1 of each year beginning in 1993, the
24Department shall notify all taxpayers required to make
25payments by electronic funds transfer. All taxpayers required
26to make payments by electronic funds transfer shall make those

 

 

10300SB1150sam001- 37 -LRB103 05594 HLH 60012 a

1payments for a minimum of one year beginning on October 1.
2    Any taxpayer not required to make payments by electronic
3funds transfer may make payments by electronic funds transfer
4with the permission of the Department.
5    All taxpayers required to make payment by electronic funds
6transfer and any taxpayers authorized to voluntarily make
7payments by electronic funds transfer shall make those
8payments in the manner authorized by the Department.
9    The Department shall adopt such rules as are necessary to
10effectuate a program of electronic funds transfer and the
11requirements of this Section.
12    Before October 1, 2000, if the taxpayer's average monthly
13tax liability to the Department under this Act, the Retailers'
14Occupation Tax Act, the Service Occupation Tax Act, the
15Service Use Tax Act was $10,000 or more during the preceding 4
16complete calendar quarters, he shall file a return with the
17Department each month by the 20th day of the month next
18following the month during which such tax liability is
19incurred and shall make payments to the Department on or
20before the 7th, 15th, 22nd and last day of the month during
21which such liability is incurred. On and after October 1,
222000, if the taxpayer's average monthly tax liability to the
23Department under this Act, the Retailers' Occupation Tax Act,
24the Service Occupation Tax Act, and the Service Use Tax Act was
25$20,000 or more during the preceding 4 complete calendar
26quarters, he shall file a return with the Department each

 

 

10300SB1150sam001- 38 -LRB103 05594 HLH 60012 a

1month by the 20th day of the month next following the month
2during which such tax liability is incurred and shall make
3payment to the Department on or before the 7th, 15th, 22nd and
4last day of the month during which such liability is incurred.
5If the month during which such tax liability is incurred began
6prior to January 1, 1985, each payment shall be in an amount
7equal to 1/4 of the taxpayer's actual liability for the month
8or an amount set by the Department not to exceed 1/4 of the
9average monthly liability of the taxpayer to the Department
10for the preceding 4 complete calendar quarters (excluding the
11month of highest liability and the month of lowest liability
12in such 4 quarter period). If the month during which such tax
13liability is incurred begins on or after January 1, 1985, and
14prior to January 1, 1987, each payment shall be in an amount
15equal to 22.5% of the taxpayer's actual liability for the
16month or 27.5% of the taxpayer's liability for the same
17calendar month of the preceding year. If the month during
18which such tax liability is incurred begins on or after
19January 1, 1987, and prior to January 1, 1988, each payment
20shall be in an amount equal to 22.5% of the taxpayer's actual
21liability for the month or 26.25% of the taxpayer's liability
22for the same calendar month of the preceding year. If the month
23during which such tax liability is incurred begins on or after
24January 1, 1988, and prior to January 1, 1989, or begins on or
25after January 1, 1996, each payment shall be in an amount equal
26to 22.5% of the taxpayer's actual liability for the month or

 

 

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125% of the taxpayer's liability for the same calendar month of
2the preceding year. If the month during which such tax
3liability is incurred begins on or after January 1, 1989, and
4prior to January 1, 1996, each payment shall be in an amount
5equal to 22.5% of the taxpayer's actual liability for the
6month or 25% of the taxpayer's liability for the same calendar
7month of the preceding year or 100% of the taxpayer's actual
8liability for the quarter monthly reporting period. The amount
9of such quarter monthly payments shall be credited against the
10final tax liability of the taxpayer's return for that month.
11Before October 1, 2000, once applicable, the requirement of
12the making of quarter monthly payments to the Department shall
13continue until such taxpayer's average monthly liability to
14the Department during the preceding 4 complete calendar
15quarters (excluding the month of highest liability and the
16month of lowest liability) is less than $9,000, or until such
17taxpayer's average monthly liability to the Department as
18computed for each calendar quarter of the 4 preceding complete
19calendar quarter period is less than $10,000. However, if a
20taxpayer can show the Department that a substantial change in
21the taxpayer's business has occurred which causes the taxpayer
22to anticipate that his average monthly tax liability for the
23reasonably foreseeable future will fall below the $10,000
24threshold stated above, then such taxpayer may petition the
25Department for change in such taxpayer's reporting status. On
26and after October 1, 2000, once applicable, the requirement of

 

 

10300SB1150sam001- 40 -LRB103 05594 HLH 60012 a

1the making of quarter monthly payments to the Department shall
2continue until such taxpayer's average monthly liability to
3the Department during the preceding 4 complete calendar
4quarters (excluding the month of highest liability and the
5month of lowest liability) is less than $19,000 or until such
6taxpayer's average monthly liability to the Department as
7computed for each calendar quarter of the 4 preceding complete
8calendar quarter period is less than $20,000. However, if a
9taxpayer can show the Department that a substantial change in
10the taxpayer's business has occurred which causes the taxpayer
11to anticipate that his average monthly tax liability for the
12reasonably foreseeable future will fall below the $20,000
13threshold stated above, then such taxpayer may petition the
14Department for a change in such taxpayer's reporting status.
15The Department shall change such taxpayer's reporting status
16unless it finds that such change is seasonal in nature and not
17likely to be long term. Quarter monthly payment status shall
18be determined under this paragraph as if the rate reduction to
191.25% in Public Act 102-700 this amendatory Act of the 102nd
20General Assembly on sales tax holiday items had not occurred.
21For quarter monthly payments due on or after July 1, 2023 and
22through June 30, 2024, "25% of the taxpayer's liability for
23the same calendar month of the preceding year" shall be
24determined as if the rate reduction to 1.25% in Public Act
25102-700 this amendatory Act of the 102nd General Assembly on
26sales tax holiday items had not occurred. Quarter monthly

 

 

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1payment status shall be determined under this paragraph as if
2the rate reduction to 0% in Public Act 102-700 this amendatory
3Act of the 102nd General Assembly on food for human
4consumption that is to be consumed off the premises where it is
5sold (other than alcoholic beverages, food consisting of or
6infused with adult use cannabis, soft drinks, and food that
7has been prepared for immediate consumption) had not occurred.
8For quarter monthly payments due under this paragraph on or
9after July 1, 2023 and through June 30, 2024, "25% of the
10taxpayer's liability for the same calendar month of the
11preceding year" shall be determined as if the rate reduction
12to 0% in Public Act 102-700 this amendatory Act of the 102nd
13General Assembly had not occurred. If any such quarter monthly
14payment is not paid at the time or in the amount required by
15this Section, then the taxpayer shall be liable for penalties
16and interest on the difference between the minimum amount due
17and the amount of such quarter monthly payment actually and
18timely paid, except insofar as the taxpayer has previously
19made payments for that month to the Department in excess of the
20minimum payments previously due as provided in this Section.
21The Department shall make reasonable rules and regulations to
22govern the quarter monthly payment amount and quarter monthly
23payment dates for taxpayers who file on other than a calendar
24monthly basis.
25    If any such payment provided for in this Section exceeds
26the taxpayer's liabilities under this Act, the Retailers'

 

 

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

 

 

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

 

 

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1    In addition, with respect to motor vehicles, watercraft,
2aircraft, and trailers that are required to be registered with
3an agency of this State, except as otherwise provided in this
4Section, every retailer selling this kind of tangible personal
5property shall file, with the Department, upon a form to be
6prescribed and supplied by the Department, a separate return
7for each such item of tangible personal property which the
8retailer sells, except that if, in the same transaction, (i) a
9retailer of aircraft, watercraft, motor vehicles or trailers
10transfers more than one aircraft, watercraft, motor vehicle or
11trailer to another aircraft, watercraft, motor vehicle or
12trailer retailer for the purpose of resale or (ii) a retailer
13of aircraft, watercraft, motor vehicles, or trailers transfers
14more than one aircraft, watercraft, motor vehicle, or trailer
15to a purchaser for use as a qualifying rolling stock as
16provided in Section 3-55 of this Act, then that seller may
17report the transfer of all the aircraft, watercraft, motor
18vehicles or trailers involved in that transaction to the
19Department on the same uniform invoice-transaction reporting
20return form. For purposes of this Section, "watercraft" means
21a Class 2, Class 3, or Class 4 watercraft as defined in Section
223-2 of the Boat Registration and Safety Act, a personal
23watercraft, or any boat equipped with an inboard motor.
24    In addition, with respect to motor vehicles, watercraft,
25aircraft, and trailers that are required to be registered with
26an agency of this State, every person who is engaged in the

 

 

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

 

 

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1such transaction; the amount of tax collected from the
2purchaser by the retailer on such transaction (or satisfactory
3evidence that such tax is not due in that particular instance,
4if that is claimed to be the fact); the place and date of the
5sale; a sufficient identification of the property sold; such
6other information as is required in Section 5-402 of the
7Illinois Vehicle Code, and such other information as the
8Department may reasonably require.
9    The transaction reporting return in the case of watercraft
10and aircraft must show the name and address of the seller; the
11name and address of the purchaser; the amount of the selling
12price 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, and
24such other information as the Department may reasonably
25require.
26    Such transaction reporting return shall be filed not later

 

 

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

 

 

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

 

 

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

 

 

10300SB1150sam001- 50 -LRB103 05594 HLH 60012 a

1Act, to furnish all the return information required by both
2Acts on the one form.
3    Where the retailer has more than one business registered
4with the Department under separate registration under this
5Act, such retailer may not file each return that is due as a
6single return covering all such registered businesses, but
7shall file separate returns for each such registered business.
8    Beginning January 1, 1990 and until August 1, 2023, each
9month the Department shall pay into the State and Local Sales
10Tax Reform Fund, a special fund in the State Treasury which is
11hereby created, the net revenue realized for the preceding
12month from the 1% tax imposed under this Act.
13    Beginning August 1, 2023, the State Comptroller shall
14order transferred and the State Treasurer shall transfer from
15the General Revenue Fund to the State and Local Sales Tax
16Reform Fund, the amount deposited into the State and Local
17Sales Tax Reform Fund for the same month in calendar year 2021
18from items that were subject to a 1% rate of tax in calendar
19year 2021. On August 1 of each year thereafter, the amount
20transferred from the General Revenue Fund to the State and
21Local Sales Tax Reform Fund under this paragraph shall be
22increased by the percentage change, if any, in the Consumer
23Price Index for All Urban Consumers as issued by the United
24States Department of Labor for the most recent 12-month period
25for which data is available.
26    Beginning January 1, 1990, each month the Department shall

 

 

10300SB1150sam001- 51 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 52 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 53 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 54 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 55 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 56 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 57 -LRB103 05594 HLH 60012 a

19 of the Service Occupation Tax Act, and Section 3 of the
2Retailers' Occupation Tax Act into the McCormick Place
3Expansion Project Fund in the specified fiscal years.
4Fiscal YearTotal Deposit
51993         $0
61994 53,000,000
71995 58,000,000
81996 61,000,000
91997 64,000,000
101998 68,000,000
111999 71,000,000
122000 75,000,000
132001 80,000,000
142002 93,000,000
152003 99,000,000
162004103,000,000
172005108,000,000
182006113,000,000
192007119,000,000
202008126,000,000
212009132,000,000
222010139,000,000
232011146,000,000
242012153,000,000
252013161,000,000
262014170,000,000

 

 

10300SB1150sam001- 58 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 59 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 60 -LRB103 05594 HLH 60012 a

1deposit moneys into the Aviation Fuel Sales Tax Refund Fund
2under this paragraph for so long as the revenue use
3requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
4binding on the State.
5    Subject to payment of amounts into the Build Illinois Fund
6and the McCormick Place Expansion Project Fund pursuant to the
7preceding paragraphs or in any amendments thereto hereafter
8enacted, beginning July 1, 1993 and ending on September 30,
92013, the Department shall each month pay into the Illinois
10Tax Increment Fund 0.27% of 80% of the net revenue realized for
11the preceding month from the 6.25% general rate on the selling
12price of tangible personal property.
13    Subject to payment of amounts into the Build Illinois Fund
14and the McCormick Place Expansion Project Fund pursuant to the
15preceding paragraphs or in any amendments thereto hereafter
16enacted, beginning with the receipt of the first report of
17taxes paid by an eligible business and continuing for a
1825-year period, the Department shall each month pay into the
19Energy Infrastructure Fund 80% of the net revenue realized
20from the 6.25% general rate on the selling price of
21Illinois-mined coal that was sold to an eligible business. For
22purposes of this paragraph, the term "eligible business" means
23a new electric generating facility certified pursuant to
24Section 605-332 of the Department of Commerce and Economic
25Opportunity Law of the Civil Administrative Code of Illinois.
26    Subject to payment of amounts into the Build Illinois

 

 

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

 

 

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1    Subject to successful execution and delivery of a
2public-private agreement between the public agency and private
3entity and completion of the civic build, beginning on July 1,
42023, of the remainder of the moneys received by the
5Department under the Use Tax Act, the Service Use Tax Act, the
6Service Occupation Tax Act, and this Act, the Department shall
7deposit the following specified deposits in the aggregate from
8collections under the Use Tax Act, the Service Use Tax Act, the
9Service Occupation Tax Act, and the Retailers' Occupation Tax
10Act, as required under Section 8.25g of the State Finance Act
11for distribution consistent with the Public-Private
12Partnership for Civic and Transit Infrastructure Project Act.
13The moneys received by the Department pursuant to this Act and
14required to be deposited into the Civic and Transit
15Infrastructure Fund are subject to the pledge, claim, and
16charge set forth in Section 25-55 of the Public-Private
17Partnership for Civic and Transit Infrastructure Project Act.
18As used in this paragraph, "civic build", "private entity",
19"public-private agreement", and "public agency" have the
20meanings provided in Section 25-10 of the Public-Private
21Partnership for Civic and Transit Infrastructure Project Act.
22        Fiscal Year............................Total Deposit
23        2024....................................$200,000,000
24        2025....................................$206,000,000
25        2026....................................$212,200,000
26        2027....................................$218,500,000

 

 

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1        2028....................................$225,100,000
2        2029....................................$288,700,000
3        2030....................................$298,900,000
4        2031....................................$309,300,000
5        2032....................................$320,100,000
6        2033....................................$331,200,000
7        2034....................................$341,200,000
8        2035....................................$351,400,000
9        2036....................................$361,900,000
10        2037....................................$372,800,000
11        2038....................................$384,000,000
12        2039....................................$395,500,000
13        2040....................................$407,400,000
14        2041....................................$419,600,000
15        2042....................................$432,200,000
16        2043....................................$445,100,000
17    Beginning July 1, 2021 and until July 1, 2022, subject to
18the payment of amounts into the State and Local Sales Tax
19Reform Fund, the Build Illinois Fund, the McCormick Place
20Expansion Project Fund, the Illinois Tax Increment Fund, the
21Energy Infrastructure Fund, and the Tax Compliance and
22Administration Fund as provided in this Section, the
23Department shall pay each month into the Road Fund the amount
24estimated to represent 16% of the net revenue realized from
25the taxes imposed on motor fuel and gasohol. Beginning July 1,
262022 and until July 1, 2023, subject to the payment of amounts

 

 

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1into the State and Local Sales Tax Reform Fund, the Build
2Illinois Fund, the McCormick Place Expansion Project Fund, the
3Illinois Tax Increment Fund, the Energy Infrastructure Fund,
4and the Tax Compliance and Administration Fund as provided in
5this Section, the Department shall pay each month into the
6Road Fund the amount estimated to represent 32% of the net
7revenue realized from the taxes imposed on motor fuel and
8gasohol. Beginning July 1, 2023 and until July 1, 2024,
9subject to the payment of amounts into the State and Local
10Sales Tax Reform Fund, the Build Illinois Fund, the McCormick
11Place Expansion Project Fund, the Illinois Tax Increment Fund,
12the Energy Infrastructure Fund, and the Tax Compliance and
13Administration Fund as provided in this Section, the
14Department shall pay each month into the Road Fund the amount
15estimated to represent 48% of the net revenue realized from
16the taxes imposed on motor fuel and gasohol. Beginning July 1,
172024 and until July 1, 2025, subject to the payment of amounts
18into the State and Local Sales Tax Reform Fund, the Build
19Illinois Fund, the McCormick Place Expansion Project Fund, the
20Illinois Tax Increment Fund, the Energy Infrastructure Fund,
21and the Tax Compliance and Administration Fund as provided in
22this Section, the Department shall pay each month into the
23Road Fund the amount estimated to represent 64% of the net
24revenue realized from the taxes imposed on motor fuel and
25gasohol. Beginning on July 1, 2025, subject to the payment of
26amounts into the State and Local Sales Tax Reform Fund, the

 

 

10300SB1150sam001- 65 -LRB103 05594 HLH 60012 a

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

 

 

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1overpayment of liability.
2    For greater simplicity of administration, manufacturers,
3importers and wholesalers whose products are sold at retail in
4Illinois by numerous retailers, and who wish to do so, may
5assume the responsibility for accounting and paying to the
6Department all tax accruing under this Act with respect to
7such sales, if the retailers who are affected do not make
8written objection to the Department to this arrangement.
9(Source: P.A. 101-10, Article 15, Section 15-10, eff. 6-5-19;
10101-10, Article 25, Section 25-105, eff. 6-5-19; 101-27, eff.
116-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
12101-636, eff. 6-10-20; 102-700, Article 60, Section 60-15,
13eff. 4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;
14102-1019, eff. 1-1-23; revised 12-13-22.)
 
15    Section 10. The Service Use Tax Act is amended by changing
16Sections 3-5, 3-10, and 9 as follows:
 
17    (35 ILCS 110/3-5)
18    Sec. 3-5. Exemptions. Use of the following tangible
19personal property is exempt from the tax imposed by this Act:
20    (1) Personal property purchased from a corporation,
21society, association, foundation, institution, or
22organization, other than a limited liability company, that is
23organized and operated as a not-for-profit service enterprise
24for the benefit of persons 65 years of age or older if the

 

 

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1personal property was not purchased by the enterprise for the
2purpose of resale by the enterprise.
3    (2) Personal property purchased by a non-profit Illinois
4county fair association for use in conducting, operating, or
5promoting the county fair.
6    (3) Personal property purchased by a not-for-profit arts
7or cultural organization that establishes, by proof required
8by the Department by rule, that it has received an exemption
9under Section 501(c)(3) of the Internal Revenue Code and that
10is organized and operated primarily for the presentation or
11support of arts or cultural programming, activities, or
12services. These organizations include, but are not limited to,
13music and dramatic arts organizations such as symphony
14orchestras and theatrical groups, arts and cultural service
15organizations, local arts councils, visual arts organizations,
16and media arts organizations. On and after July 1, 2001 (the
17effective date of Public Act 92-35), however, an entity
18otherwise eligible for this exemption shall not make tax-free
19purchases unless it has an active identification number issued
20by the Department.
21    (4) Legal tender, currency, medallions, or gold or silver
22coinage issued by the State of Illinois, the government of the
23United States of America, or the government of any foreign
24country, and bullion.
25    (5) Until July 1, 2003 and beginning again on September 1,
262004 through August 30, 2014, graphic arts machinery and

 

 

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

 

 

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

 

 

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

 

 

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1(iii) pumps and pump-jack units, (iv) storage tanks and flow
2lines, (v) any individual replacement part for oil field
3exploration, drilling, and production equipment, and (vi)
4machinery and equipment purchased for lease; but excluding
5motor vehicles required to be registered under the Illinois
6Vehicle Code.
7    (11) Proceeds from the sale of photoprocessing machinery
8and equipment, including repair and replacement parts, both
9new and used, including that manufactured on special order,
10certified by the purchaser to be used primarily for
11photoprocessing, and including photoprocessing machinery and
12equipment purchased for lease.
13    (12) Until July 1, 2028, coal and aggregate exploration,
14mining, off-highway hauling, processing, maintenance, and
15reclamation equipment, including replacement parts and
16equipment, and including equipment purchased for lease, but
17excluding motor vehicles required to be registered under the
18Illinois Vehicle Code. The changes made to this Section by
19Public Act 97-767 apply on and after July 1, 2003, but no claim
20for credit or refund is allowed on or after August 16, 2013
21(the effective date of Public Act 98-456) for such taxes paid
22during the period beginning July 1, 2003 and ending on August
2316, 2013 (the effective date of Public Act 98-456).
24    (13) Semen used for artificial insemination of livestock
25for direct agricultural production.
26    (14) Horses, or interests in horses, registered with and

 

 

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1meeting the requirements of any of the Arabian Horse Club
2Registry of America, Appaloosa Horse Club, American Quarter
3Horse Association, United States Trotting Association, or
4Jockey Club, as appropriate, used for purposes of breeding or
5racing for prizes. This item (14) is exempt from the
6provisions of Section 3-75, and the exemption provided for
7under this item (14) applies for all periods beginning May 30,
81995, but no claim for credit or refund is allowed on or after
9January 1, 2008 (the effective date of Public Act 95-88) for
10such taxes paid during the period beginning May 30, 2000 and
11ending on January 1, 2008 (the effective date of Public Act
1295-88).
13    (15) Computers and communications equipment utilized for
14any hospital purpose and equipment used in the diagnosis,
15analysis, or treatment of hospital patients purchased by a
16lessor who leases the equipment, under a lease of one year or
17longer executed or in effect at the time the lessor would
18otherwise be subject to the tax imposed by this Act, to a
19hospital that has been issued an active tax exemption
20identification number by the Department under Section 1g of
21the Retailers' Occupation Tax Act. If the equipment is leased
22in a manner that does not qualify for this exemption or is used
23in any other non-exempt manner, the lessor shall be liable for
24the tax imposed under this Act or the Use Tax Act, as the case
25may be, based on the fair market value of the property at the
26time the non-qualifying use occurs. No lessor shall collect or

 

 

10300SB1150sam001- 73 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 74 -LRB103 05594 HLH 60012 a

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

 

 

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1    (19) Beginning July 1, 1999, game or game birds purchased
2at a "game breeding and hunting preserve area" as that term is
3used in the Wildlife Code. This paragraph is exempt from the
4provisions of Section 3-75.
5    (20) A motor vehicle, as that term is defined in Section
61-146 of the Illinois Vehicle Code, that is donated to a
7corporation, limited liability company, society, association,
8foundation, or institution that is determined by the
9Department to be organized and operated exclusively for
10educational purposes. For purposes of this exemption, "a
11corporation, limited liability company, society, association,
12foundation, or institution organized and operated exclusively
13for educational purposes" means all tax-supported public
14schools, private schools that offer systematic instruction in
15useful branches of learning by methods common to public
16schools and that compare favorably in their scope and
17intensity with the course of study presented in tax-supported
18schools, and vocational or technical schools or institutes
19organized and operated exclusively to provide a course of
20study of not less than 6 weeks duration and designed to prepare
21individuals to follow a trade or to pursue a manual,
22technical, mechanical, industrial, business, or commercial
23occupation.
24    (21) Beginning January 1, 2000, personal property,
25including food, purchased through fundraising events for the
26benefit of a public or private elementary or secondary school,

 

 

10300SB1150sam001- 76 -LRB103 05594 HLH 60012 a

1a group of those schools, or one or more school districts if
2the events are sponsored by an entity recognized by the school
3district that consists primarily of volunteers and includes
4parents and teachers of the school children. This paragraph
5does not apply to fundraising events (i) for the benefit of
6private home instruction or (ii) for which the fundraising
7entity purchases the personal property sold at the events from
8another individual or entity that sold the property for the
9purpose of resale by the fundraising entity and that profits
10from the sale to the fundraising entity. This paragraph is
11exempt from the provisions of Section 3-75.
12    (22) Beginning January 1, 2000 and through December 31,
132001, new or used automatic vending machines that prepare and
14serve hot food and beverages, including coffee, soup, and
15other items, and replacement parts for these machines.
16Beginning January 1, 2002 and through June 30, 2003, machines
17and parts for machines used in commercial, coin-operated
18amusement and vending business if a use or occupation tax is
19paid on the gross receipts derived from the use of the
20commercial, coin-operated amusement and vending machines. This
21paragraph is exempt from the provisions of Section 3-75.
22    (23) Beginning August 23, 2001 and through June 30, 2016,
23food for human consumption that is to be consumed off the
24premises where it is sold (other than alcoholic beverages,
25soft drinks, and food that has been prepared for immediate
26consumption) and prescription and nonprescription medicines,

 

 

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

 

 

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

 

 

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

 

 

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1personal property transferred incident to the modification,
2refurbishment, completion, replacement, repair, or maintenance
3of aircraft by persons who (i) hold an Air Agency Certificate
4and are empowered to operate an approved repair station by the
5Federal Aviation Administration, (ii) have a Class IV Rating,
6and (iii) conduct operations in accordance with Part 145 of
7the Federal Aviation Regulations. The exemption does not
8include aircraft operated by a commercial air carrier
9providing scheduled passenger air service pursuant to
10authority issued under Part 121 or Part 129 of the Federal
11Aviation Regulations. The changes made to this paragraph (27)
12by Public Act 98-534 are declarative of existing law. It is the
13intent of the General Assembly that the exemption under this
14paragraph (27) applies continuously from January 1, 2010
15through December 31, 2024; however, no claim for credit or
16refund is allowed for taxes paid as a result of the
17disallowance of this exemption on or after January 1, 2015 and
18prior to February 5, 2020 (the effective date of Public Act
19101-629) this amendatory Act of the 101st General Assembly.
20    (28) Tangible personal property purchased by a
21public-facilities corporation, as described in Section
2211-65-10 of the Illinois Municipal Code, for purposes of
23constructing or furnishing a municipal convention hall, but
24only if the legal title to the municipal convention hall is
25transferred to the municipality without any further
26consideration by or on behalf of the municipality at the time

 

 

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1of the completion of the municipal convention hall or upon the
2retirement or redemption of any bonds or other debt
3instruments issued by the public-facilities corporation in
4connection with the development of the municipal convention
5hall. This exemption includes existing public-facilities
6corporations as provided in Section 11-65-25 of the Illinois
7Municipal Code. This paragraph is exempt from the provisions
8of Section 3-75.
9    (29) Beginning January 1, 2017 and through December 31,
102026, menstrual pads, tampons, and menstrual cups.
11    (30) Tangible personal property transferred to a purchaser
12who is exempt from the tax imposed by this Act by operation of
13federal law. This paragraph is exempt from the provisions of
14Section 3-75.
15    (31) Qualified tangible personal property used in the
16construction or operation of a data center that has been
17granted a certificate of exemption by the Department of
18Commerce and Economic Opportunity, whether that tangible
19personal property is purchased by the owner, operator, or
20tenant of the data center or by a contractor or subcontractor
21of the owner, operator, or tenant. Data centers that would
22have qualified for a certificate of exemption prior to January
231, 2020 had Public Act 101-31 this amendatory Act of the 101st
24General Assembly been in effect, may apply for and obtain an
25exemption for subsequent purchases of computer equipment or
26enabling software purchased or leased to upgrade, supplement,

 

 

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

 

 

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1    and component parts of any of the foregoing, including
2    installation, maintenance, repair, refurbishment, and
3    replacement of qualified tangible personal property to
4    generate, transform, transmit, distribute, or manage
5    electricity necessary to operate qualified tangible
6    personal property; and all other tangible personal
7    property that is essential to the operations of a computer
8    data center. The term "qualified tangible personal
9    property" also includes building materials physically
10    incorporated in to the qualifying data center. To document
11    the exemption allowed under this Section, the retailer
12    must obtain from the purchaser a copy of the certificate
13    of eligibility issued by the Department of Commerce and
14    Economic Opportunity.
15    This item (31) is exempt from the provisions of Section
163-75.
17    (32) Beginning July 1, 2022, breast pumps, breast pump
18collection and storage supplies, and breast pump kits. This
19item (32) is exempt from the provisions of Section 3-75. As
20used in this item (32):
21        "Breast pump" means an electrically controlled or
22    manually controlled pump device designed or marketed to be
23    used to express milk from a human breast during lactation,
24    including the pump device and any battery, AC adapter, or
25    other power supply unit that is used to power the pump
26    device and is packaged and sold with the pump device at the

 

 

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

 

 

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1    more than a breast pump, breast pump collection and
2    storage supplies, a rechargeable battery for operating the
3    breast pump, a breastmilk cooler, bottle stands, ice
4    packs, and a breast pump carrying case; and (2) is
5    pre-packaged as a breast pump kit by the breast pump
6    manufacturer or distributor.
7    (33) (32) Tangible personal property sold by or on behalf
8of the State Treasurer pursuant to the Revised Uniform
9Unclaimed Property Act. This item (33) (32) is exempt from the
10provisions of Section 3-75.
11    (34) Beginning on July 1, 2022, as defined in Section
123-10, food prepared for immediate consumption and transferred
13incident to a sale of service subject to this Act or the
14Service Occupation Tax Act by an entity licensed under the
15Hospital Licensing Act, the Nursing Home Care Act, the
16Assisted Living and Shared Housing Act, the ID/DD Community
17Care Act, the MC/DD Act, the Specialized Mental Health
18Rehabilitation Act of 2013, or the Child Care Act of 1969, or
19an entity that holds a permit issued pursuant to the Life Care
20Facilities Act. This item (34) is exempt from the provisions
21of Section 3-75.
22    (35) Beginning on July 1, 2022, as defined in Section
233-10, food for human consumption that is to be consumed off the
24premises where it is sold (other than alcoholic beverages,
25food consisting of or infused with adult use cannabis, soft
26drinks, and food that has been prepared for immediate

 

 

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1consumption). This item (35) is exempt from the provisions of
2Section 3-75.
3    (36) Beginning on July 1, 2023, the following items, as
4defined in Section 3-10:
5        (A) prescription and nonprescription medicines, drugs,
6    and medical appliances;
7        (B) products classified as Class III medical devices
8    by the United States Food and Drug Administration that are
9    used for cancer treatment pursuant to a prescription, as
10    well as any accessories and components related to those
11    devices;
12        (C) modifications to a motor vehicle for the purpose
13    of rendering it usable by a person with a disability; and
14        (D) insulin, blood sugar testing materials, syringes,
15    and needles used by human diabetics.
16    This item (36) is exempt from the provisions of Section
173-75.
18(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
19101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
2070, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
2175-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
 
22    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
23    Sec. 3-10. Rate of tax. Unless otherwise provided in this
24Section, the tax imposed by this Act is at the rate of 6.25% of
25the selling price of tangible personal property transferred as

 

 

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1an incident to the sale of service, but, for the purpose of
2computing this tax, in no event shall the selling price be less
3than the cost price of the property to the serviceman.
4    Beginning on July 1, 2000 and through December 31, 2000,
5with respect to motor fuel, as defined in Section 1.1 of the
6Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
7the Use Tax Act, the tax is imposed at the rate of 1.25%.
8    With respect to gasohol, as defined in the Use Tax Act, the
9tax imposed by this Act applies to (i) 70% of the selling price
10of property transferred as an incident to the sale of service
11on or after January 1, 1990, and before July 1, 2003, (ii) 80%
12of the selling price of property transferred as an incident to
13the sale of service on or after July 1, 2003 and on or before
14July 1, 2017, and (iii) 100% of the selling price thereafter.
15If, at any time, however, the tax under this Act on sales of
16gasohol, as defined in the Use Tax Act, is imposed at the rate
17of 1.25%, then the tax imposed by this Act applies to 100% of
18the proceeds of sales of gasohol made during that time.
19    With respect to majority blended ethanol fuel, as defined
20in the Use Tax Act, the tax imposed by this Act does not apply
21to the selling price of property transferred as an incident to
22the sale of service on or after July 1, 2003 and on or before
23December 31, 2023 but applies to 100% of the selling price
24thereafter.
25    With respect to biodiesel blends, as defined in the Use
26Tax Act, with no less than 1% and no more than 10% biodiesel,

 

 

10300SB1150sam001- 88 -LRB103 05594 HLH 60012 a

1the tax imposed by this Act applies to (i) 80% of the selling
2price of property transferred as an incident to the sale of
3service on or after July 1, 2003 and on or before December 31,
42018 and (ii) 100% of the proceeds of the selling price after
5December 31, 2018 and before January 1, 2024. On and after
6January 1, 2024 and on or before December 31, 2030, the
7taxation of biodiesel, renewable diesel, and biodiesel blends
8shall be as provided in Section 3-5.1 of the Use Tax Act. If,
9at any time, however, the tax under this Act on sales of
10biodiesel blends, as defined in the Use Tax Act, with no less
11than 1% and no more than 10% biodiesel is imposed at the rate
12of 1.25%, then the tax imposed by this Act applies to 100% of
13the proceeds of sales of biodiesel blends with no less than 1%
14and no more than 10% biodiesel made during that time.
15    With respect to biodiesel, as defined in the Use Tax Act,
16and biodiesel blends, as defined in the Use Tax Act, with more
17than 10% but no more than 99% biodiesel, the tax imposed by
18this Act does not apply to the proceeds of the selling price of
19property transferred as an incident to the sale of service on
20or after July 1, 2003 and on or before December 31, 2023. On
21and after January 1, 2024 and on or before December 31, 2030,
22the taxation of biodiesel, renewable diesel, and biodiesel
23blends shall be as provided in Section 3-5.1 of the Use Tax
24Act.
25    At the election of any registered serviceman made for each
26fiscal year, sales of service in which the aggregate annual

 

 

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

 

 

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1shall be imposed at the rate of 0% on food prepared for
2immediate consumption and transferred incident to a sale of
3service subject to this Act or the Service Occupation Tax Act
4by an entity licensed under the Hospital Licensing Act, the
5Nursing Home Care Act, the Assisted Living and Shared Housing
6Act, the ID/DD Community Care Act, the MC/DD Act, the
7Specialized Mental Health Rehabilitation Act of 2013, or the
8Child Care Act of 1969, or an entity that holds a permit issued
9pursuant to the Life Care Facilities Act. Beginning on July 1,
102022 and until July 1, 2023, the tax shall also be imposed at
11the rate of 0% on food for human consumption that is to be
12consumed off the premises where it is sold (other than
13alcoholic beverages, food consisting of or infused with adult
14use cannabis, soft drinks, and food that has been prepared for
15immediate consumption and is not otherwise included in this
16paragraph).
17    Until July 1, 2023, the The tax shall also be imposed at
18the rate of 1% on prescription and nonprescription medicines,
19drugs, medical appliances, products classified as Class III
20medical devices by the United States Food and Drug
21Administration that are used for cancer treatment pursuant to
22a prescription, as well as any accessories and components
23related to those devices, modifications to a motor vehicle for
24the purpose of rendering it usable by a person with a
25disability, and insulin, blood sugar testing materials,
26syringes, and needles used by human diabetics. For the

 

 

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

 

 

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

 

 

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1        (A) a A "Drug Facts" panel; or
2        (B) a 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.
22(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
23102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
2420, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section
2560-20, eff. 4-19-22; revised 6-1-22.)
 

 

 

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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
26extent that he is required to pay and does pay the tax imposed

 

 

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1by the Service Occupation Tax Act with respect to his sale of
2service involving the incidental transfer by him of the same
3property.
4    Except as provided hereinafter in this Section, on or
5before the twentieth day of each calendar month, such
6serviceman shall file a return for the preceding calendar
7month in accordance with reasonable Rules and Regulations to
8be promulgated by the Department. Such return shall be filed
9on a form prescribed by the Department and shall contain such
10information as the Department may reasonably require. The
11return shall include the gross receipts which were received
12during the preceding calendar month or quarter on the
13following items upon which tax would have been due but for the
140% rate imposed under this amendatory Act of the 102nd General
15Assembly: (i) 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 (ii) food prepared for immediate
20consumption and transferred incident to a sale of service
21subject to this Act or the Service Occupation Tax Act by an
22entity licensed under the Hospital Licensing Act, the Nursing
23Home Care Act, the Assisted Living and Shared Housing Act, the
24ID/DD Community Care Act, the MC/DD Act, the Specialized
25Mental Health Rehabilitation Act of 2013, or the Child Care
26Act of 1969, or an entity that holds a permit issued pursuant

 

 

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1to the Life Care Facilities Act. The return shall also include
2the amount of tax that would have been due on the items listed
3in the previous sentence but for the 0% rate imposed under this
4amendatory Act of the 102nd General Assembly.
5    On and after January 1, 2018, with respect to servicemen
6whose annual gross receipts average $20,000 or more, all
7returns required to be filed pursuant to this Act shall be
8filed electronically. Servicemen who demonstrate that they do
9not have access to the Internet or demonstrate hardship in
10filing electronically may petition the Department to waive the
11electronic filing requirement.
12    The Department may require returns to be filed on a
13quarterly basis. If so required, a return for each calendar
14quarter shall be filed on or before the twentieth day of the
15calendar month following the end of such calendar quarter. The
16taxpayer shall also file a return with the Department for each
17of the first two months of each calendar quarter, on or before
18the twentieth day of the following calendar month, stating:
19        1. The name of the seller;
20        2. The address of the principal place of business from
21    which he engages in business as a serviceman in this
22    State;
23        3. The total amount of taxable receipts received by
24    him during the preceding calendar month, including
25    receipts from charge and time sales, but less all
26    deductions allowed by law;

 

 

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

 

 

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1cannabis tax returns and shall make all cannabis tax payments
2by electronic means in the manner and form required by the
3Department.
4    Beginning October 1, 1993, a taxpayer who has an average
5monthly tax liability of $150,000 or more shall make all
6payments required by rules of the Department by electronic
7funds transfer. Beginning October 1, 1994, a taxpayer who has
8an average monthly tax liability of $100,000 or more shall
9make all payments required by rules of the Department by
10electronic funds transfer. Beginning October 1, 1995, a
11taxpayer who has an average monthly tax liability of $50,000
12or more shall make all payments required by rules of the
13Department by electronic funds transfer. Beginning October 1,
142000, a taxpayer who has an annual tax liability of $200,000 or
15more shall make all payments required by rules of the
16Department by electronic funds transfer. The term "annual tax
17liability" shall be the sum of the taxpayer's liabilities
18under this Act, and under all other State and local occupation
19and use tax laws administered by the Department, for the
20immediately preceding calendar year. The term "average monthly
21tax liability" means the sum of the taxpayer's liabilities
22under this Act, and under all other State and local occupation
23and use tax laws administered by the Department, for the
24immediately preceding calendar year divided by 12. Beginning
25on October 1, 2002, a taxpayer who has a tax liability in the
26amount set forth in subsection (b) of Section 2505-210 of the

 

 

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1Department of Revenue Law shall make all payments required by
2rules of the Department by electronic funds transfer.
3    Before August 1 of each year beginning in 1993, the
4Department shall notify all taxpayers required to make
5payments by electronic funds transfer. All taxpayers required
6to make payments by electronic funds transfer shall make those
7payments for a minimum of one year beginning on October 1.
8    Any taxpayer not required to make payments by electronic
9funds transfer may make payments by electronic funds transfer
10with the permission of the Department.
11    All taxpayers required to make payment by electronic funds
12transfer and any taxpayers authorized to voluntarily make
13payments by electronic funds transfer shall make those
14payments in the manner authorized by the Department.
15    The Department shall adopt such rules as are necessary to
16effectuate a program of electronic funds transfer and the
17requirements of this Section.
18    If the serviceman is otherwise required to file a monthly
19return and if the serviceman's average monthly tax liability
20to the 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 year
23being due by April 20 of such year; with the return for April,
24May and June of a given year being due by July 20 of such year;
25with the return for July, August and September of a given year
26being due by October 20 of such year, and with the return for

 

 

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1October, November and December of a given year being due by
2January 20 of the following year.
3    If the serviceman is otherwise required to file a monthly
4or quarterly return and if the serviceman's average monthly
5tax liability 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 serviceman may file his return, in the
14case of any serviceman who ceases to engage in a kind of
15business which makes him responsible for filing returns under
16this Act, such serviceman shall file a final return under this
17Act with the Department not more than 1 month after
18discontinuing such business.
19    Where a serviceman collects the tax with respect to the
20selling price of property which he sells and the purchaser
21thereafter returns such property and the serviceman refunds
22the selling price thereof to the purchaser, such serviceman
23shall also refund, to the purchaser, the tax so collected from
24the purchaser. When filing his return for the period in which
25he refunds such tax to the purchaser, the serviceman may
26deduct the amount of the tax so refunded by him to the

 

 

10300SB1150sam001- 101 -LRB103 05594 HLH 60012 a

1purchaser from any other Service Use Tax, Service Occupation
2Tax, retailers' occupation tax or use tax which such
3serviceman may be required to pay or remit to the Department,
4as shown by such return, provided that the amount of the tax to
5be deducted shall previously have been remitted to the
6Department by such serviceman. If the serviceman shall not
7previously have remitted the amount of such tax to the
8Department, he shall be entitled to no deduction hereunder
9upon refunding such tax to the purchaser.
10    Any serviceman filing a return hereunder shall also
11include the total tax upon the selling price of tangible
12personal property purchased for use by him as an incident to a
13sale of service, and such serviceman shall remit the amount of
14such tax to the Department when filing such return.
15    If experience indicates such action to be practicable, the
16Department may prescribe and furnish a combination or joint
17return which will enable servicemen, who are required to file
18returns hereunder and also under the Service Occupation Tax
19Act, to furnish all the return information required by both
20Acts on the one form.
21    Where the serviceman has more than one business registered
22with the Department under separate registration hereunder,
23such serviceman shall not file each return that is due as a
24single return covering all such registered businesses, but
25shall file separate returns for each such registered business.
26    Beginning January 1, 1990 and until August 1, 2023, each

 

 

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1month the Department shall pay into the State and Local Tax
2Reform Fund, a special fund in the State Treasury, the net
3revenue realized for the preceding month from the 1% tax
4imposed under this Act.
5    Beginning August 1, 2023, the State Comptroller shall
6order transferred and the State Treasurer shall transfer from
7the General Revenue Fund to the State and Local Sales Tax
8Reform Fund, the amount deposited into the State and Local
9Sales Tax Reform Fund for the same month in calendar year 2021
10from items that were subject to a 1% rate of tax in calendar
11year 2021. On August 1 of each year thereafter, the amount
12transferred from the General Revenue Fund to the State and
13Local Sales Tax Reform Fund under this paragraph shall be
14increased by the percentage change, if any, in the Consumer
15Price Index for All Urban Consumers as issued by the United
16States Department of Labor for the most recent 12-month period
17for which data is available.
18    Beginning January 1, 1990, each month the Department shall
19pay into the State and Local Sales Tax Reform Fund 20% of the
20net revenue realized for the preceding month from the 6.25%
21general rate on transfers of tangible personal property, other
22than (i) tangible personal property which is purchased outside
23Illinois at retail from a retailer and which is titled or
24registered by an agency of this State's government and (ii)
25aviation fuel sold on or after December 1, 2019. This
26exception for aviation fuel only applies for so long as the

 

 

10300SB1150sam001- 103 -LRB103 05594 HLH 60012 a

1revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
247133 are binding on the State.
3    For aviation fuel sold on or after December 1, 2019, each
4month the Department shall pay into the State Aviation Program
5Fund 20% of the net revenue realized for the preceding month
6from the 6.25% general rate on the selling price of aviation
7fuel, less an amount estimated by the Department to be
8required for refunds of the 20% portion of the tax on aviation
9fuel under this Act, which amount shall be deposited into the
10Aviation Fuel Sales Tax Refund Fund. The Department shall only
11pay moneys into the State Aviation Program Fund and the
12Aviation Fuel Sales Tax Refund Fund under this Act for so long
13as the revenue use requirements of 49 U.S.C. 47107(b) and 49
14U.S.C. 47133 are binding on the State.
15    Beginning August 1, 2000, each month the Department shall
16pay into the State and Local Sales Tax Reform Fund 100% of the
17net revenue realized for the preceding month from the 1.25%
18rate on the selling price of motor fuel and gasohol.
19    Beginning October 1, 2009, each month the Department shall
20pay into the Capital Projects Fund an amount that is equal to
21an amount estimated by the Department to represent 80% of the
22net revenue realized for the preceding month from the sale of
23candy, grooming and hygiene products, and soft drinks that had
24been taxed at a rate of 1% prior to September 1, 2009 but that
25are now taxed at 6.25%.
26    Beginning July 1, 2013, each month the Department shall

 

 

10300SB1150sam001- 104 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 105 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 106 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 107 -LRB103 05594 HLH 60012 a

1of the preceding sentence and shall reduce the amount
2otherwise payable for such fiscal year pursuant to clause (b)
3of the preceding sentence. The moneys received by the
4Department pursuant to this Act and required to be deposited
5into the Build Illinois Fund are subject to the pledge, claim
6and charge set forth in Section 12 of the Build Illinois Bond
7Act.
8    Subject to payment of amounts into the Build Illinois Fund
9as provided in the preceding paragraph or in any amendment
10thereto hereafter enacted, the following specified monthly
11installment of the amount requested in the certificate of the
12Chairman of the Metropolitan Pier and Exposition Authority
13provided under Section 8.25f of the State Finance Act, but not
14in excess of the sums designated as "Total Deposit", shall be
15deposited in the aggregate from collections under Section 9 of
16the Use Tax Act, Section 9 of the Service Use Tax Act, Section
179 of the Service Occupation Tax Act, and Section 3 of the
18Retailers' Occupation Tax Act into the McCormick Place
19Expansion Project Fund in the specified fiscal years.
 
20Fiscal YearTotal Deposit
211993         $0
221994 53,000,000
231995 58,000,000
241996 61,000,000
251997 64,000,000

 

 

10300SB1150sam001- 108 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 109 -LRB103 05594 HLH 60012 a

12024 300,000,000
22025 300,000,000
32026 300,000,000
42027 375,000,000
52028 375,000,000
62029 375,000,000
72030 375,000,000
82031 375,000,000
92032 375,000,000
102033 375,000,000
112034375,000,000
122035375,000,000
132036450,000,000
14and
15each fiscal year
16thereafter that bonds
17are outstanding under
18Section 13.2 of the
19Metropolitan Pier and
20Exposition Authority Act,
21but not after fiscal year 2060.
22    Beginning July 20, 1993 and in each month of each fiscal
23year thereafter, one-eighth of the amount requested in the
24certificate of the Chairman of the Metropolitan Pier and
25Exposition Authority for that fiscal year, less the amount
26deposited into the McCormick Place Expansion Project Fund by

 

 

10300SB1150sam001- 110 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 111 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 112 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 113 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 114 -LRB103 05594 HLH 60012 a

1        2037....................................$372,800,000
2        2038....................................$384,000,000
3        2039....................................$395,500,000
4        2040....................................$407,400,000
5        2041....................................$419,600,000
6        2042....................................$432,200,000
7        2043....................................$445,100,000
8    Beginning July 1, 2021 and until July 1, 2022, subject to
9the payment of amounts into the State and Local Sales Tax
10Reform Fund, the Build Illinois Fund, the McCormick Place
11Expansion Project Fund, the Illinois Tax Increment Fund, the
12Energy Infrastructure Fund, and the Tax Compliance and
13Administration Fund as provided in this Section, the
14Department shall pay each month into the Road Fund the amount
15estimated to represent 16% of the net revenue realized from
16the taxes imposed on motor fuel and gasohol. Beginning July 1,
172022 and until July 1, 2023, subject to the payment of amounts
18into the State and Local Sales Tax Reform Fund, the Build
19Illinois Fund, the McCormick Place Expansion Project Fund, the
20Illinois Tax Increment Fund, the Energy Infrastructure Fund,
21and the Tax Compliance and Administration Fund as provided in
22this Section, the Department shall pay each month into the
23Road Fund the amount estimated to represent 32% of the net
24revenue realized from the taxes imposed on motor fuel and
25gasohol. Beginning July 1, 2023 and until July 1, 2024,
26subject to the payment of amounts into the State and Local

 

 

10300SB1150sam001- 115 -LRB103 05594 HLH 60012 a

1Sales Tax Reform Fund, the Build Illinois Fund, the McCormick
2Place Expansion Project Fund, the Illinois Tax Increment Fund,
3the Energy Infrastructure Fund, and the Tax Compliance and
4Administration Fund as provided in this Section, the
5Department shall pay each month into the Road Fund the amount
6estimated to represent 48% of the net revenue realized from
7the taxes imposed on motor fuel and gasohol. Beginning July 1,
82024 and until July 1, 2025, subject to the payment of amounts
9into the State and Local Sales Tax Reform Fund, the Build
10Illinois Fund, the McCormick Place Expansion Project Fund, the
11Illinois Tax Increment Fund, the Energy Infrastructure Fund,
12and the Tax Compliance and Administration Fund as provided in
13this Section, the Department shall pay each month into the
14Road Fund the amount estimated to represent 64% of the net
15revenue realized from the taxes imposed on motor fuel and
16gasohol. Beginning on July 1, 2025, subject to the payment of
17amounts into the State and Local Sales Tax Reform Fund, the
18Build Illinois Fund, the McCormick Place Expansion Project
19Fund, the Illinois Tax Increment Fund, the Energy
20Infrastructure Fund, and the Tax Compliance and Administration
21Fund as provided in this Section, the Department shall pay
22each month into the Road Fund the amount estimated to
23represent 80% of the net revenue realized from the taxes
24imposed on motor fuel and gasohol. As used in this paragraph
25"motor fuel" has the meaning given to that term in Section 1.1
26of the Motor Fuel Tax Law, and "gasohol" has the meaning given

 

 

10300SB1150sam001- 116 -LRB103 05594 HLH 60012 a

1to that term in Section 3-40 of the Use Tax Act.
2    Of the remainder of the moneys received by the Department
3pursuant to this Act, 75% thereof shall be paid into the
4General Revenue Fund of the State Treasury and 25% shall be
5reserved in a special account and used only for the transfer to
6the Common School Fund as part of the monthly transfer from the
7General Revenue Fund in accordance with Section 8a of the
8State Finance Act.
9    As soon as possible after the first day of each month, upon
10certification of the Department of Revenue, the Comptroller
11shall order transferred and the Treasurer shall transfer from
12the General Revenue Fund to the Motor Fuel Tax Fund an amount
13equal to 1.7% of 80% of the net revenue realized under this Act
14for the second preceding month. Beginning April 1, 2000, this
15transfer is no longer required and shall not be made.
16    Net revenue realized for a month shall be the revenue
17collected by the State pursuant to this Act, less the amount
18paid out during that month as refunds to taxpayers for
19overpayment of liability.
20(Source: P.A. 101-10, Article 15, Section 15-15, eff. 6-5-19;
21101-10, Article 25, Section 25-110, eff. 6-5-19; 101-27, eff.
226-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
23101-636, eff. 6-10-20; 102-700, eff. 4-19-22.)
 
24    Section 15. The Service Occupation Tax Act is amended by
25changing Sections 3-5, 3-10, and 9 as follows:
 

 

 

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1    (35 ILCS 115/3-5)
2    Sec. 3-5. Exemptions. The following tangible personal
3property is exempt from the tax imposed by this Act:
4    (1) Personal property sold by a corporation, society,
5association, foundation, institution, or organization, other
6than a limited liability company, that is organized and
7operated as a not-for-profit service enterprise for the
8benefit of persons 65 years of age or older if the personal
9property was not purchased by the enterprise for the purpose
10of resale by the enterprise.
11    (2) Personal property purchased by a not-for-profit
12Illinois county fair association for use in conducting,
13operating, or promoting the county fair.
14    (3) Personal property purchased by any not-for-profit arts
15or cultural organization that establishes, by proof required
16by the Department by rule, that it has received an exemption
17under Section 501(c)(3) of the Internal Revenue Code and that
18is organized and operated primarily for the presentation or
19support of arts or cultural programming, activities, or
20services. These organizations include, but are not limited to,
21music and dramatic arts organizations such as symphony
22orchestras and theatrical groups, arts and cultural service
23organizations, local arts councils, visual arts organizations,
24and media arts organizations. On and after July 1, 2001 (the
25effective date of Public Act 92-35), however, an entity

 

 

10300SB1150sam001- 118 -LRB103 05594 HLH 60012 a

1otherwise eligible for this exemption shall not make tax-free
2purchases unless it has an active identification number issued
3by the Department.
4    (4) Legal tender, currency, medallions, or gold or silver
5coinage issued by the State of Illinois, the government of the
6United States of America, or the government of any foreign
7country, and bullion.
8    (5) Until July 1, 2003 and beginning again on September 1,
92004 through August 30, 2014, graphic arts machinery and
10equipment, including repair and replacement parts, both new
11and used, and including that manufactured on special order or
12purchased for lease, certified by the purchaser to be used
13primarily for graphic arts production. Equipment includes
14chemicals or chemicals acting as catalysts but only if the
15chemicals or chemicals acting as catalysts effect a direct and
16immediate change upon a graphic arts product. Beginning on
17July 1, 2017, graphic arts machinery and equipment is included
18in the manufacturing and assembling machinery and equipment
19exemption under Section 2 of this Act.
20    (6) Personal property sold by a teacher-sponsored student
21organization affiliated with an elementary or secondary school
22located in Illinois.
23    (7) Farm machinery and equipment, both new and used,
24including that manufactured on special order, certified by the
25purchaser to be used primarily for production agriculture or
26State or federal agricultural programs, including individual

 

 

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

 

 

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

 

 

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

 

 

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1for credit or refund is allowed on or after August 16, 2013
2(the effective date of Public Act 98-456) for such taxes paid
3during the period beginning July 1, 2003 and ending on August
416, 2013 (the effective date of Public Act 98-456).
5    (13) Beginning January 1, 1992 and through June 30, 2016,
6food for human consumption that is to be consumed off the
7premises where it is sold (other than alcoholic beverages,
8soft drinks and food that has been prepared for immediate
9consumption) and prescription and non-prescription medicines,
10drugs, medical appliances, and insulin, urine testing
11materials, syringes, and needles used by diabetics, for human
12use, when purchased for use by a person receiving medical
13assistance under Article V of the Illinois Public Aid Code who
14resides in a licensed long-term care facility, as defined in
15the Nursing Home Care Act, or in a licensed facility as defined
16in the ID/DD Community Care Act, the MC/DD Act, or the
17Specialized Mental Health Rehabilitation Act of 2013.
18    (14) Semen used for artificial insemination of livestock
19for direct agricultural production.
20    (15) Horses, or interests in horses, registered with and
21meeting the requirements of any of the Arabian Horse Club
22Registry of America, Appaloosa Horse Club, American Quarter
23Horse Association, United States Trotting Association, or
24Jockey Club, as appropriate, used for purposes of breeding or
25racing for prizes. This item (15) is exempt from the
26provisions of Section 3-55, and the exemption provided for

 

 

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1under this item (15) applies for all periods beginning May 30,
21995, but no claim for credit or refund is allowed on or after
3January 1, 2008 (the effective date of Public Act 95-88) for
4such taxes paid during the period beginning May 30, 2000 and
5ending on January 1, 2008 (the effective date of Public Act
695-88).
7    (16) Computers and communications equipment utilized for
8any hospital purpose and equipment used in the diagnosis,
9analysis, or treatment of hospital patients sold to a lessor
10who leases the equipment, under a lease of one year or longer
11executed or in effect at the time of the purchase, to a
12hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of
14the Retailers' Occupation Tax Act.
15    (17) Personal property sold to a lessor who leases the
16property, under a lease of one year or longer executed or in
17effect at the time of the purchase, to a governmental body that
18has been issued an active tax exemption identification number
19by the Department under Section 1g of the Retailers'
20Occupation Tax Act.
21    (18) 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 donated
24for disaster relief to be used in a State or federally declared
25disaster area in Illinois or bordering Illinois by a
26manufacturer or retailer that is registered in this State to a

 

 

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1corporation, society, association, foundation, or institution
2that has been issued a sales tax exemption identification
3number by the Department that assists victims of the disaster
4who reside within the declared disaster area.
5    (19) Beginning with taxable years ending on or after
6December 31, 1995 and ending with taxable years ending on or
7before December 31, 2004, personal property that is used in
8the performance of infrastructure repairs in this State,
9including but not limited to municipal roads and streets,
10access roads, bridges, sidewalks, waste disposal systems,
11water and sewer line extensions, water distribution and
12purification facilities, storm water drainage and retention
13facilities, and sewage treatment facilities, resulting from a
14State or federally declared disaster in Illinois or bordering
15Illinois when such repairs are initiated on facilities located
16in the declared disaster area within 6 months after the
17disaster.
18    (20) Beginning July 1, 1999, game or game birds sold at a
19"game breeding and hunting preserve area" as that term is used
20in the Wildlife Code. This paragraph is exempt from the
21provisions of Section 3-55.
22    (21) A motor vehicle, as that term is defined in Section
231-146 of the Illinois Vehicle Code, that is donated to a
24corporation, limited liability company, society, association,
25foundation, or institution that is determined by the
26Department to be organized and operated exclusively for

 

 

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

 

 

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1from the sale to the fundraising entity. This paragraph is
2exempt from the provisions of Section 3-55.
3    (23) Beginning January 1, 2000 and through December 31,
42001, new or used automatic vending machines that prepare and
5serve hot food and beverages, including coffee, soup, and
6other items, and replacement parts for these machines.
7Beginning January 1, 2002 and through June 30, 2003, machines
8and parts for machines used in commercial, coin-operated
9amusement and vending business if a use or occupation tax is
10paid on the gross receipts derived from the use of the
11commercial, coin-operated amusement and vending machines. This
12paragraph is exempt from the provisions of Section 3-55.
13    (24) Beginning on August 2, 2001 (the effective date of
14Public Act 92-227), computers and communications equipment
15utilized for any hospital purpose and equipment used in the
16diagnosis, analysis, or treatment of hospital patients sold to
17a lessor who leases the equipment, under a lease of one year or
18longer executed or in effect at the time of the purchase, to a
19hospital that has been issued an active tax exemption
20identification number by the Department under Section 1g of
21the Retailers' Occupation Tax Act. This paragraph is exempt
22from the provisions of Section 3-55.
23    (25) Beginning on August 2, 2001 (the effective date of
24Public Act 92-227), personal property sold to a lessor who
25leases the property, under a lease of one year or longer
26executed or in effect at the time of the purchase, to a

 

 

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1governmental body that has been issued an active tax exemption
2identification number by the Department under Section 1g of
3the Retailers' Occupation Tax Act. This paragraph is exempt
4from the provisions of Section 3-55.
5    (26) Beginning on January 1, 2002 and through June 30,
62016, tangible personal property purchased from an Illinois
7retailer by a taxpayer engaged in centralized purchasing
8activities in Illinois who will, upon receipt of the property
9in Illinois, temporarily store the property in Illinois (i)
10for the purpose of subsequently transporting it outside this
11State for use or consumption thereafter solely outside this
12State or (ii) for the purpose of being processed, fabricated,
13or manufactured into, attached to, or incorporated into other
14tangible personal property to be transported outside this
15State and thereafter used or consumed solely outside this
16State. The Director of Revenue shall, pursuant to rules
17adopted in accordance with the Illinois Administrative
18Procedure Act, issue a permit to any taxpayer in good standing
19with the Department who is eligible for the exemption under
20this paragraph (26). The permit issued under this paragraph
21(26) shall authorize the holder, to the extent and in the
22manner specified in the rules adopted under this Act, to
23purchase tangible personal property from a retailer exempt
24from the taxes imposed by this Act. Taxpayers shall maintain
25all necessary books and records to substantiate the use and
26consumption of all such tangible personal property outside of

 

 

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1the State of Illinois.
2    (27) Beginning January 1, 2008, tangible personal property
3used in the construction or maintenance of a community water
4supply, as defined under Section 3.145 of the Environmental
5Protection Act, that is operated by a not-for-profit
6corporation that holds a valid water supply permit issued
7under Title IV of the Environmental Protection Act. This
8paragraph is exempt from the provisions of Section 3-55.
9    (28) Tangible personal property sold to a
10public-facilities corporation, as described in Section
1111-65-10 of the Illinois Municipal Code, for purposes of
12constructing or furnishing a municipal convention hall, but
13only if the legal title to the municipal convention hall is
14transferred to the municipality without any further
15consideration by or on behalf of the municipality at the time
16of the completion of the municipal convention hall or upon the
17retirement or redemption of any bonds or other debt
18instruments issued by the public-facilities corporation in
19connection with the development of the municipal convention
20hall. This exemption includes existing public-facilities
21corporations as provided in Section 11-65-25 of the Illinois
22Municipal Code. This paragraph is exempt from the provisions
23of Section 3-55.
24    (29) Beginning January 1, 2010 and continuing through
25December 31, 2024, materials, parts, equipment, components,
26and furnishings incorporated into or upon an aircraft as part

 

 

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1of the modification, refurbishment, completion, replacement,
2repair, or maintenance of the aircraft. This exemption
3includes consumable supplies used in the modification,
4refurbishment, completion, replacement, repair, and
5maintenance of aircraft, but excludes any materials, parts,
6equipment, components, and consumable supplies used in the
7modification, replacement, repair, and maintenance of aircraft
8engines or power plants, whether such engines or power plants
9are installed or uninstalled upon any such aircraft.
10"Consumable supplies" include, but are not limited to,
11adhesive, tape, sandpaper, general purpose lubricants,
12cleaning solution, latex gloves, and protective films. This
13exemption applies only to the transfer of qualifying tangible
14personal property incident to the modification, refurbishment,
15completion, replacement, repair, or maintenance of an aircraft
16by persons who (i) hold an Air Agency Certificate and are
17empowered to operate an approved repair station by the Federal
18Aviation Administration, (ii) have a Class IV Rating, and
19(iii) conduct operations in accordance with Part 145 of the
20Federal Aviation Regulations. The exemption does not include
21aircraft operated by a commercial air carrier providing
22scheduled passenger air service pursuant to authority issued
23under Part 121 or Part 129 of the Federal Aviation
24Regulations. The changes made to this paragraph (29) by Public
25Act 98-534 are declarative of existing law. It is the intent of
26the General Assembly that the exemption under this paragraph

 

 

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1(29) applies continuously from January 1, 2010 through
2December 31, 2024; however, no claim for credit or refund is
3allowed for taxes paid as a result of the disallowance of this
4exemption on or after January 1, 2015 and prior to February 5,
52020 (the effective date of Public Act 101-629) this
6amendatory Act of the 101st General Assembly.
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 this amendatory Act of the 101st
21General Assembly been in effect, may apply for and obtain an
22exemption for subsequent purchases of computer equipment or
23enabling software purchased or leased to upgrade, supplement,
24or replace computer equipment or enabling software purchased
25or leased in the original investment that would have
26qualified.

 

 

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

 

 

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1    generate, transform, transmit, distribute, or manage
2    electricity necessary to operate qualified tangible
3    personal property; and all other tangible personal
4    property that is essential to the operations of a computer
5    data center. The term "qualified tangible personal
6    property" also includes building materials physically
7    incorporated in to the qualifying data center. To document
8    the exemption allowed under this Section, the retailer
9    must obtain from the purchaser a copy of the certificate
10    of eligibility issued by the Department of Commerce and
11    Economic Opportunity.
12    This item (32) is exempt from the provisions of Section
133-55.
14    (33) Beginning July 1, 2022, breast pumps, breast pump
15collection and storage supplies, and breast pump kits. This
16item (33) is exempt from the provisions of Section 3-55. As
17used in this item (33):
18        "Breast pump" means an electrically controlled or
19    manually controlled pump device designed or marketed to be
20    used to express milk from a human breast during lactation,
21    including the pump device and any battery, AC adapter, or
22    other power supply unit that is used to power the pump
23    device and is packaged and sold with the pump device at the
24    time of sale.
25        "Breast pump collection and storage supplies" means
26    items of tangible personal property designed or marketed

 

 

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

 

 

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1    packs, and a breast pump carrying case; and (2) is
2    pre-packaged as a breast pump kit by the breast pump
3    manufacturer or distributor.
4    (34) (33) Tangible personal property sold by or on behalf
5of the State Treasurer pursuant to the Revised Uniform
6Unclaimed Property Act. This item (34) (33) is exempt from the
7provisions of Section 3-55.
8    (35) Beginning on July 1, 2022, as defined in Section
93-10, food prepared for immediate consumption and transferred
10incident to a sale of service subject to this Act or the
11Service Occupation Tax Act by an entity licensed under the
12Hospital Licensing Act, the Nursing Home Care Act, the
13Assisted Living and Shared Housing Act, the ID/DD Community
14Care Act, the MC/DD Act, the Specialized Mental Health
15Rehabilitation Act of 2013, or the Child Care Act of 1969, or
16an entity that holds a permit issued pursuant to the Life Care
17Facilities Act. This item (35) is exempt from the provisions
18of Section 3-55.
19    (36) Beginning on July 1, 2022, as defined in Section
203-10, food for human consumption that is to be consumed off the
21premises where it is sold (other than alcoholic beverages,
22food consisting of or infused with adult use cannabis, soft
23drinks, and food that has been prepared for immediate
24consumption). This item (36) is exempt from the provisions of
25Section 3-55.
26    (37) Beginning on July 1, 2023, the following items, as

 

 

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1defined in Section 3-10:
2        (A) prescription and nonprescription medicines, drugs,
3    and medical appliances;
4        (B) products classified as Class III medical devices
5    by the United States Food and Drug Administration that are
6    used for cancer treatment pursuant to a prescription, as
7    well as any accessories and components related to those
8    devices;
9        (C) modifications to a motor vehicle for the purpose
10    of rendering it usable by a person with a disability; and
11        (D) insulin, blood sugar testing materials, syringes,
12    and needles used by human diabetics.
13    This item (37) is exempt from the provisions of Section
14    3-55.
15(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
16101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article
1770, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
1875-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
 
19    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
20    Sec. 3-10. Rate of tax. Unless otherwise provided in this
21Section, the tax imposed by this Act is at the rate of 6.25% of
22the "selling price", as defined in Section 2 of the Service Use
23Tax Act, of the tangible personal property. For the purpose of
24computing this tax, in no event shall the "selling price" be
25less than the cost price to the serviceman of the tangible

 

 

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1personal property transferred. The selling price of each item
2of tangible personal property transferred as an incident of a
3sale of service may be shown as a distinct and separate item on
4the serviceman's billing to the service customer. If the
5selling price is not so shown, the selling price of the
6tangible personal property is deemed to be 50% of the
7serviceman's entire billing to the service customer. When,
8however, a serviceman contracts to design, develop, and
9produce special order machinery or equipment, the tax imposed
10by this Act shall be based on the serviceman's cost price of
11the tangible personal property transferred incident to the
12completion of the contract.
13    Beginning on July 1, 2000 and through December 31, 2000,
14with respect to motor fuel, as defined in Section 1.1 of the
15Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
16the Use Tax Act, the tax is imposed at the rate of 1.25%.
17    With respect to gasohol, as defined in the Use Tax Act, the
18tax imposed by this Act shall apply to (i) 70% of the cost
19price of property transferred as an incident to the sale of
20service on or after January 1, 1990, and before July 1, 2003,
21(ii) 80% of the selling price of property transferred as an
22incident to the sale of service on or after July 1, 2003 and on
23or before July 1, 2017, and (iii) 100% of the cost price
24thereafter. If, at any time, however, the tax under this Act on
25sales of gasohol, as defined in the Use Tax Act, is imposed at
26the rate of 1.25%, then the tax imposed by this Act applies to

 

 

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1100% of the proceeds of sales of gasohol made during that time.
2    With respect to majority blended ethanol fuel, as defined
3in the Use Tax Act, the tax imposed by this Act does not apply
4to the selling price of property transferred as an incident to
5the sale of service on or after July 1, 2003 and on or before
6December 31, 2023 but applies to 100% of the selling price
7thereafter.
8    With respect to biodiesel blends, as defined in the Use
9Tax Act, with no less than 1% and no more than 10% biodiesel,
10the tax imposed by this Act applies to (i) 80% of the selling
11price of property transferred as an incident to the sale of
12service on or after July 1, 2003 and on or before December 31,
132018 and (ii) 100% of the proceeds of the selling price after
14December 31, 2018 and before January 1, 2024. On and after
15January 1, 2024 and on or before December 31, 2030, the
16taxation of biodiesel, renewable diesel, and biodiesel blends
17shall be as provided in Section 3-5.1 of the Use Tax Act. If,
18at any time, however, the tax under this Act on sales of
19biodiesel blends, as defined in the Use Tax Act, with no less
20than 1% and no more than 10% biodiesel is imposed at the rate
21of 1.25%, then the tax imposed by this Act applies to 100% of
22the proceeds of sales of biodiesel blends with no less than 1%
23and no more than 10% biodiesel made during that time.
24    With respect to biodiesel, as defined in the Use Tax Act,
25and biodiesel blends, as defined in the Use Tax Act, with more
26than 10% but no more than 99% biodiesel material, the tax

 

 

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1imposed by this Act does not apply to the proceeds of the
2selling price of property transferred as an incident to the
3sale of service on or after July 1, 2003 and on or before
4December 31, 2023. On and after January 1, 2024 and on or
5before December 31, 2030, the taxation of biodiesel, renewable
6diesel, and biodiesel blends shall be as provided in Section
73-5.1 of the Use Tax Act.
8    At the election of any registered serviceman made for each
9fiscal year, sales of service in which the aggregate annual
10cost price of tangible personal property transferred as an
11incident to the sales of service is less than 35%, or 75% in
12the case of servicemen transferring prescription drugs or
13servicemen engaged in graphic arts production, of the
14aggregate annual total gross receipts from all sales of
15service, the tax imposed by this Act shall be based on the
16serviceman's cost price of the tangible personal property
17transferred incident to the sale of those services.
18    Until July 1, 2022 and beginning again on July 1, 2023, the
19tax shall be imposed at the rate of 1% on food prepared for
20immediate consumption and transferred incident to a sale of
21service subject to this Act or the Service Use Tax Act by an
22entity licensed under the Hospital Licensing Act, the Nursing
23Home Care Act, the Assisted Living and Shared Housing Act, the
24ID/DD Community Care Act, the MC/DD Act, the Specialized
25Mental Health Rehabilitation Act of 2013, or the Child Care
26Act of 1969, or an entity that holds a permit issued pursuant

 

 

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

 

 

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

 

 

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

 

 

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1shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2lotions and screens, unless those products are available by
3prescription only, regardless of whether the products meet the
4definition of "over-the-counter-drugs". For the purposes of
5this paragraph, "over-the-counter-drug" means a drug for human
6use that contains a label that identifies the product as a drug
7as required by 21 CFR C.F.R. 201.66. The
8"over-the-counter-drug" label includes:
9        (A) a A "Drug Facts" panel; or
10        (B) a A statement of the "active ingredient(s)" with a
11    list of those ingredients contained in the compound,
12    substance or preparation.
13    Beginning on January 1, 2014 (the effective date of Public
14Act 98-122), "prescription and nonprescription medicines and
15drugs" includes medical cannabis purchased from a registered
16dispensing organization under the Compassionate Use of Medical
17Cannabis Program Act.
18    As used in this Section, "adult use cannabis" means
19cannabis subject to tax under the Cannabis Cultivation
20Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
21and does not include cannabis subject to tax under the
22Compassionate Use of Medical Cannabis Program Act.
23(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
24102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article
2520, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section
2660-25, eff. 4-19-22; revised 6-1-22.)
 

 

 

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1    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
2    Sec. 9. Each serviceman required or authorized to collect
3the tax herein imposed shall pay to the Department the amount
4of such tax at the time when he is required to file his return
5for the period during which such tax was collectible, less a
6discount of 2.1% prior to January 1, 1990, and 1.75% on and
7after January 1, 1990, or $5 per calendar year, whichever is
8greater, which is allowed to reimburse the serviceman for
9expenses incurred in collecting the tax, keeping records,
10preparing and filing returns, remitting the tax and supplying
11data to the Department on request. When determining the
12discount allowed under this Section, servicemen shall include
13the amount of tax that would have been due at the 1% rate but
14for the 0% rate imposed under this amendatory Act of the 102nd
15General Assembly. The discount under this Section is not
16allowed for the 1.25% portion of taxes paid on aviation fuel
17that is subject to the revenue use requirements of 49 U.S.C.
1847107(b) and 49 U.S.C. 47133. The discount allowed under this
19Section is allowed only for returns that are filed in the
20manner required by this Act. The Department may disallow the
21discount for servicemen whose certificate of registration is
22revoked at the time the return is filed, but only if the
23Department's decision to revoke the certificate of
24registration has become final.
25    Where such tangible personal property is sold under a

 

 

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1conditional sales contract, or under any other form of sale
2wherein the payment of the principal sum, or a part thereof, is
3extended beyond the close of the period for which the return is
4filed, the serviceman, in collecting the tax may collect, for
5each tax return period, only the tax applicable to the part of
6the selling price actually received during such tax return
7period.
8    Except as provided hereinafter in this Section, on or
9before the twentieth day of each calendar month, such
10serviceman shall file a return for the preceding calendar
11month in accordance with reasonable rules and regulations to
12be promulgated by the Department of Revenue. Such return shall
13be filed on a form prescribed by the Department and shall
14contain such information as the Department may reasonably
15require. The return shall include the gross receipts which
16were received during the preceding calendar month or quarter
17on the following items upon which tax would have been due but
18for the 0% rate imposed under this amendatory Act of the 102nd
19General Assembly: (i) food for human consumption that is to be
20consumed off the premises where it is sold (other than
21alcoholic beverages, food consisting of or infused with adult
22use cannabis, soft drinks, and food that has been prepared for
23immediate consumption); and (ii) food prepared for immediate
24consumption and transferred incident to a sale of service
25subject to this Act or the Service Use Tax Act by an entity
26licensed under the Hospital Licensing Act, the Nursing Home

 

 

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1Care Act, the Assisted Living and Shared Housing Act, the
2ID/DD Community Care Act, the MC/DD Act, the Specialized
3Mental Health Rehabilitation Act of 2013, or the Child Care
4Act of 1969, or an entity that holds a permit issued pursuant
5to the Life Care Facilities Act. The return shall also include
6the amount of tax that would have been due on the items listed
7in the previous sentence but for the 0% rate imposed under this
8amendatory Act of the 102nd General Assembly.
9    On and after January 1, 2018, with respect to servicemen
10whose annual gross receipts average $20,000 or more, all
11returns required to be filed pursuant to this Act shall be
12filed electronically. Servicemen who demonstrate that they do
13not have access to the Internet or demonstrate hardship in
14filing electronically may petition the Department to waive the
15electronic filing requirement.
16    The Department may require returns to be filed on a
17quarterly basis. If so required, a return for each calendar
18quarter shall be filed on or before the twentieth day of the
19calendar month following the end of such calendar quarter. The
20taxpayer shall also file a return with the Department for each
21of the first two months of each calendar quarter, on or before
22the twentieth day of the following calendar month, stating:
23        1. The name of the seller;
24        2. The address of the principal place of business from
25    which he engages in business as a serviceman in this
26    State;

 

 

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

 

 

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1the return shall be considered valid and any amount shown to be
2due on the return shall be deemed assessed.
3    Notwithstanding any other provision of this Act to the
4contrary, servicemen subject to tax on cannabis shall file all
5cannabis tax returns and shall make all cannabis tax payments
6by electronic means in the manner and form required by the
7Department.
8    Prior to October 1, 2003, and on and after September 1,
92004 a serviceman may accept a Manufacturer's Purchase Credit
10certification from a purchaser in satisfaction of Service Use
11Tax as provided in Section 3-70 of the Service Use Tax Act if
12the purchaser provides the appropriate documentation as
13required by Section 3-70 of the Service Use Tax Act. A
14Manufacturer's Purchase Credit certification, accepted prior
15to October 1, 2003 or on or after September 1, 2004 by a
16serviceman as provided in Section 3-70 of the Service Use Tax
17Act, may be used by that serviceman to satisfy Service
18Occupation Tax liability in the amount claimed in the
19certification, not to exceed 6.25% of the receipts subject to
20tax from a qualifying purchase. A Manufacturer's Purchase
21Credit reported on any original or amended return filed under
22this Act after October 20, 2003 for reporting periods prior to
23September 1, 2004 shall be disallowed. Manufacturer's Purchase
24Credit reported on annual returns due on or after January 1,
252005 will be disallowed for periods prior to September 1,
262004. No Manufacturer's Purchase Credit may be used after

 

 

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1September 30, 2003 through August 31, 2004 to satisfy any tax
2liability imposed under this Act, including any audit
3liability.
4    If the serviceman's average monthly tax liability to the
5Department does not exceed $200, the Department may authorize
6his returns to be filed on a quarter annual basis, with the
7return for January, February and March of a given year being
8due by April 20 of such year; with the return for April, May
9and June of a given year being due by July 20 of such year;
10with the return for July, August and September of a given year
11being due by October 20 of such year, and with the return for
12October, November and December of a given year being due by
13January 20 of the following year.
14    If the serviceman's average monthly tax liability to the
15Department does not exceed $50, the Department may authorize
16his returns to be filed on an annual basis, with the return for
17a given year being due by January 20 of the following year.
18    Such quarter annual and annual returns, as to form and
19substance, shall be subject to the same requirements as
20monthly returns.
21    Notwithstanding any other provision in this Act concerning
22the time within which a serviceman may file his return, in the
23case of any serviceman who ceases to engage in a kind of
24business which makes him responsible for filing returns under
25this Act, such serviceman shall file a final return under this
26Act with the Department not more than 1 month after

 

 

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1discontinuing such business.
2    Beginning October 1, 1993, a taxpayer who has an average
3monthly tax liability of $150,000 or more shall make all
4payments required by rules of the Department by electronic
5funds transfer. Beginning October 1, 1994, a taxpayer who has
6an average monthly tax liability of $100,000 or more shall
7make all payments required by rules of the Department by
8electronic funds transfer. Beginning October 1, 1995, a
9taxpayer who has an average monthly tax liability of $50,000
10or more shall make all payments required by rules of the
11Department by electronic funds transfer. Beginning October 1,
122000, a taxpayer who has an annual tax liability of $200,000 or
13more shall make all payments required by rules of the
14Department by electronic funds transfer. The term "annual tax
15liability" shall be the sum of the taxpayer's liabilities
16under this Act, and under all other State and local occupation
17and use tax laws administered by the Department, for the
18immediately preceding calendar year. The term "average monthly
19tax liability" means the sum of the taxpayer's liabilities
20under this Act, and under all other State and local occupation
21and use tax laws administered by the Department, for the
22immediately preceding calendar year divided by 12. Beginning
23on October 1, 2002, a taxpayer who has a tax liability in the
24amount set forth in subsection (b) of Section 2505-210 of the
25Department of Revenue Law shall make all payments required by
26rules of the Department by electronic funds transfer.

 

 

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1    Before August 1 of each year beginning in 1993, the
2Department shall notify all taxpayers required to make
3payments by electronic funds transfer. All taxpayers required
4to make payments by electronic funds transfer shall make those
5payments for a minimum of one year beginning on October 1.
6    Any taxpayer not required to make payments by electronic
7funds transfer may make payments by electronic funds transfer
8with the permission of the Department.
9    All taxpayers required to make payment by electronic funds
10transfer and any taxpayers authorized to voluntarily make
11payments by electronic funds transfer shall make those
12payments in the manner authorized by the Department.
13    The Department shall adopt such rules as are necessary to
14effectuate a program of electronic funds transfer and the
15requirements of this Section.
16    Where a serviceman collects the tax with respect to the
17selling price of tangible personal property which he sells and
18the purchaser thereafter returns such tangible personal
19property and the serviceman refunds the selling price thereof
20to the purchaser, such serviceman shall also refund, to the
21purchaser, the tax so collected from the purchaser. When
22filing his return for the period in which he refunds such tax
23to the purchaser, the serviceman may deduct the amount of the
24tax so refunded by him to the purchaser from any other Service
25Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
26Use Tax which such serviceman may be required to pay or remit

 

 

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1to the Department, as shown by such return, provided that the
2amount of the tax to be deducted shall previously have been
3remitted to the Department by such serviceman. If the
4serviceman shall not previously have remitted the amount of
5such tax to the Department, he shall be entitled to no
6deduction hereunder upon refunding such tax to the purchaser.
7    If experience indicates such action to be practicable, the
8Department may prescribe and furnish a combination or joint
9return which will enable servicemen, who are required to file
10returns hereunder and also under the Retailers' Occupation Tax
11Act, the Use Tax Act or the Service Use Tax Act, to furnish all
12the return information required by all said Acts on the one
13form.
14    Where the serviceman has more than one business registered
15with the Department under separate registrations hereunder,
16such serviceman shall file separate returns for each
17registered business.
18    Beginning January 1, 1990 and until August 1, 2023, each
19month the Department shall pay into the Local Government Tax
20Fund the revenue realized for the preceding month from the 1%
21tax imposed under this Act.
22    Beginning August 1, 2023, the State Comptroller shall
23order transferred and the State Treasurer shall transfer from
24the General Revenue Fund to the Local Government Tax Fund, the
25amount deposited into the Local Government Tax Fund for the
26same month in calendar year 2021 from items that were subject

 

 

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1to a 1% rate of tax in calendar year 2021. On August 1 of each
2year thereafter, the amount transferred from the General
3Revenue Fund to the Local Government Tax Fund under this
4paragraph shall be increased by the percentage change, if any,
5in the Consumer Price Index for All Urban Consumers as issued
6by the United States Department of Labor for the most recent
712-month period for which data is available.
8    Beginning January 1, 1990, each month the Department shall
9pay into the County and Mass Transit District Fund 4% of the
10revenue realized for the preceding month from the 6.25%
11general rate on sales of tangible personal property other than
12aviation fuel sold on or after December 1, 2019. This
13exception for aviation fuel only applies for so long as the
14revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1547133 are binding on the 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.
20    Beginning January 1, 1990, each month the Department shall
21pay into the Local Government Tax Fund 16% of the revenue
22realized for the preceding month from the 6.25% general rate
23on transfers of tangible personal property other than aviation
24fuel sold on or after December 1, 2019. This exception for
25aviation fuel only applies for so long as the revenue use
26requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are

 

 

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

 

 

10300SB1150sam001- 154 -LRB103 05594 HLH 60012 a

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

 

 

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

 

 

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

 

 

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1otherwise payable for such fiscal year pursuant to clause (b)
2of the preceding sentence. The moneys received by the
3Department pursuant to this Act and required to be deposited
4into the Build Illinois Fund are subject to the pledge, claim
5and charge set forth in Section 12 of the Build Illinois Bond
6Act.
7    Subject to payment of amounts into the Build Illinois Fund
8as provided in the preceding paragraph or in any amendment
9thereto hereafter enacted, the following specified monthly
10installment of the amount requested in the certificate of the
11Chairman of the Metropolitan Pier and Exposition Authority
12provided under Section 8.25f of the State Finance Act, but not
13in excess of the sums designated as "Total Deposit", shall be
14deposited in the aggregate from collections under Section 9 of
15the Use Tax Act, Section 9 of the Service Use Tax Act, Section
169 of the Service Occupation Tax Act, and Section 3 of the
17Retailers' Occupation Tax Act into the McCormick Place
18Expansion Project Fund in the specified fiscal years.
 
19Fiscal YearTotal Deposit
201993         $0
211994 53,000,000
221995 58,000,000
231996 61,000,000
241997 64,000,000
251998 68,000,000

 

 

10300SB1150sam001- 158 -LRB103 05594 HLH 60012 a

11999 71,000,000
22000 75,000,000
32001 80,000,000
42002 93,000,000
52003 99,000,000
62004103,000,000
72005108,000,000
82006113,000,000
92007119,000,000
102008126,000,000
112009132,000,000
122010139,000,000
132011146,000,000
142012153,000,000
152013161,000,000
162014170,000,000
172015179,000,000
182016189,000,000
192017199,000,000
202018210,000,000
212019221,000,000
222020233,000,000
232021300,000,000
242022300,000,000
252023300,000,000
262024 300,000,000

 

 

10300SB1150sam001- 159 -LRB103 05594 HLH 60012 a

12025 300,000,000
22026 300,000,000
32027 375,000,000
42028 375,000,000
52029 375,000,000
62030 375,000,000
72031 375,000,000
82032 375,000,000
92033 375,000,000
102034375,000,000
112035375,000,000
122036450,000,000
13and
14each fiscal year
15thereafter that bonds
16are outstanding under
17Section 13.2 of the
18Metropolitan Pier and
19Exposition Authority Act,
20but not after fiscal year 2060.
21    Beginning July 20, 1993 and in each month of each fiscal
22year thereafter, one-eighth of the amount requested in the
23certificate of the Chairman of the Metropolitan Pier and
24Exposition Authority for that fiscal year, less the amount
25deposited into the McCormick Place Expansion Project Fund by
26the State Treasurer in the respective month under subsection

 

 

10300SB1150sam001- 160 -LRB103 05594 HLH 60012 a

1(g) of Section 13 of the Metropolitan Pier and Exposition
2Authority Act, plus cumulative deficiencies in the deposits
3required under this Section for previous months and years,
4shall be deposited into the McCormick Place Expansion Project
5Fund, until the full amount requested for the fiscal year, but
6not in excess of the amount specified above as "Total
7Deposit", has been deposited.
8    Subject to payment of amounts into the Capital Projects
9Fund, the Build Illinois Fund, and the McCormick Place
10Expansion Project Fund pursuant to the preceding paragraphs or
11in any amendments thereto hereafter enacted, for aviation fuel
12sold on or after December 1, 2019, the Department shall each
13month deposit into the Aviation Fuel Sales Tax Refund Fund an
14amount estimated by the Department to be required for refunds
15of the 80% portion of the tax on aviation fuel under this Act.
16The Department shall only deposit moneys into the Aviation
17Fuel Sales Tax Refund Fund under this paragraph for so long as
18the revenue use requirements of 49 U.S.C. 47107(b) and 49
19U.S.C. 47133 are binding on the State.
20    Subject to payment of amounts into the Build Illinois Fund
21and the McCormick Place Expansion Project Fund pursuant to the
22preceding paragraphs or in any amendments thereto hereafter
23enacted, beginning July 1, 1993 and ending on September 30,
242013, the Department shall each month pay into the Illinois
25Tax Increment Fund 0.27% of 80% of the net revenue realized for
26the preceding month from the 6.25% general rate on the selling

 

 

10300SB1150sam001- 161 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 162 -LRB103 05594 HLH 60012 a

1fund additional auditors and compliance personnel at the
2Department of Revenue, an amount equal to 1/12 of 5% of 80% of
3the cash receipts collected during the preceding fiscal year
4by the Audit Bureau of the Department under the Use Tax Act,
5the Service Use Tax Act, the Service Occupation Tax Act, the
6Retailers' Occupation Tax Act, and associated local occupation
7and use taxes administered by the Department.
8    Subject to payments of amounts into the Build Illinois
9Fund, the McCormick Place Expansion Project Fund, the Illinois
10Tax Increment Fund, the Energy Infrastructure Fund, and the
11Tax Compliance and Administration Fund as provided in this
12Section, beginning on July 1, 2018 the Department shall pay
13each month into the Downstate Public Transportation Fund the
14moneys required to be so paid under Section 2-3 of the
15Downstate Public Transportation Act.
16    Subject to successful execution and delivery of a
17public-private agreement between the public agency and private
18entity and completion of the civic build, beginning on July 1,
192023, of the remainder of the moneys received by the
20Department under the Use Tax Act, the Service Use Tax Act, the
21Service Occupation Tax Act, and this Act, the Department shall
22deposit the following specified deposits in the aggregate from
23collections under the Use Tax Act, the Service Use Tax Act, the
24Service Occupation Tax Act, and the Retailers' Occupation Tax
25Act, as required under Section 8.25g of the State Finance Act
26for distribution consistent with the Public-Private

 

 

10300SB1150sam001- 163 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 164 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 165 -LRB103 05594 HLH 60012 a

1Tax Fund, the Build Illinois Fund, the McCormick Place
2Expansion Project Fund, the Illinois Tax Increment Fund, the
3Energy Infrastructure Fund, and the Tax Compliance and
4Administration Fund as provided in this Section, the
5Department shall pay each month into the Road Fund the amount
6estimated to represent 48% of the net revenue realized from
7the taxes imposed on motor fuel and gasohol. Beginning July 1,
82024 and until July 1, 2025, subject to the payment of amounts
9into the County and Mass Transit District Fund, the Local
10Government Tax Fund, the Build Illinois Fund, the McCormick
11Place Expansion Project Fund, the Illinois Tax Increment Fund,
12the Energy Infrastructure Fund, and the Tax Compliance and
13Administration Fund as provided in this Section, the
14Department shall pay each month into the Road Fund the amount
15estimated to represent 64% of the net revenue realized from
16the taxes imposed on motor fuel and gasohol. Beginning on July
171, 2025, subject to the payment of amounts into the County and
18Mass Transit District Fund, the Local Government Tax Fund, the
19Build Illinois Fund, the McCormick Place Expansion Project
20Fund, the Illinois Tax Increment Fund, the Energy
21Infrastructure Fund, and the Tax Compliance and Administration
22Fund as provided in this Section, the Department shall pay
23each month into the Road Fund the amount estimated to
24represent 80% of the net revenue realized from the taxes
25imposed on motor fuel and gasohol. As used in this paragraph
26"motor fuel" has the meaning given to that term in Section 1.1

 

 

10300SB1150sam001- 166 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 167 -LRB103 05594 HLH 60012 a

1taxpayer during such year, pay roll information of the
2taxpayer's business during such year and any additional
3reasonable information which the Department deems would be
4helpful in determining the accuracy of the monthly, quarterly
5or annual returns filed by such taxpayer as hereinbefore
6provided for in this Section.
7    If the annual information return required by this Section
8is not filed when and as required, the taxpayer shall be liable
9as follows:
10        (i) Until January 1, 1994, the taxpayer shall be
11    liable for a penalty equal to 1/6 of 1% of the tax due from
12    such taxpayer under this Act during the period to be
13    covered by the annual return for each month or fraction of
14    a month until such return is filed as required, the
15    penalty to be assessed and collected in the same manner as
16    any other penalty provided for in this Act.
17        (ii) On and after January 1, 1994, the taxpayer shall
18    be liable for a penalty as described in Section 3-4 of the
19    Uniform Penalty and Interest 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

 

 

10300SB1150sam001- 168 -LRB103 05594 HLH 60012 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 a
4serviceman who is not required to file an income tax return
5with the United States Government.
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, it shall be
18permissible for manufacturers, importers and wholesalers whose
19products are sold by numerous servicemen in Illinois, and who
20wish to do so, to assume the responsibility for accounting and
21paying to the Department all tax accruing under this Act with
22respect to such sales, if the servicemen who are affected do
23not make written objection to the Department to this
24arrangement.
25(Source: P.A. 101-10, Article 15, Section 15-20, eff. 6-5-19;
26101-10, Article 25, Section 25-115, eff. 6-5-19; 101-27, eff.

 

 

10300SB1150sam001- 169 -LRB103 05594 HLH 60012 a

16-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
2101-636, eff. 6-10-20; 102-700, eff. 4-19-22.)
 
3    Section 20. The Retailers' Occupation Tax Act is amended
4by changing Sections 2-5, 2-10, and 3 as follows:
 
5    (35 ILCS 120/2-5)
6    Sec. 2-5. Exemptions. Gross receipts from proceeds from
7the sale of the following tangible personal property are
8exempt from the tax imposed by this Act:
9        (1) Farm chemicals.
10        (2) Farm machinery and equipment, both new and used,
11    including that manufactured on special order, certified by
12    the purchaser to be used primarily for production
13    agriculture or State or federal agricultural programs,
14    including individual replacement parts for the machinery
15    and equipment, including machinery and equipment purchased
16    for lease, and including implements of husbandry defined
17    in Section 1-130 of the Illinois Vehicle Code, farm
18    machinery and agricultural chemical and fertilizer
19    spreaders, and nurse wagons required to be registered
20    under Section 3-809 of the Illinois Vehicle Code, but
21    excluding other motor vehicles required to be registered
22    under the Illinois Vehicle Code. Horticultural polyhouses
23    or hoop houses used for propagating, growing, or
24    overwintering plants shall be considered farm machinery

 

 

10300SB1150sam001- 170 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 171 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 172 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 173 -LRB103 05594 HLH 60012 a

1    a 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.

 

 

10300SB1150sam001- 174 -LRB103 05594 HLH 60012 a

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, lessors, or
11    shippers of tangible personal property that is utilized by
12    interstate carriers for hire for use as rolling stock
13    moving in interstate commerce and equipment operated by a
14    telecommunications provider, licensed as a common carrier
15    by the Federal Communications Commission, which is
16    permanently installed in or affixed to aircraft moving in
17    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

 

 

10300SB1150sam001- 175 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 176 -LRB103 05594 HLH 60012 a

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,

 

 

10300SB1150sam001- 177 -LRB103 05594 HLH 60012 a

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 C.F.R. 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, 2024, 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, but
14    excludes any materials, parts, equipment, components, and
15    consumable supplies used in the modification, replacement,
16    repair, and maintenance of aircraft engines or power
17    plants, whether such engines or power plants are installed
18    or uninstalled upon any such aircraft. "Consumable
19    supplies" include, but are not limited to, adhesive, tape,
20    sandpaper, general purpose lubricants, cleaning solution,
21    latex gloves, and protective films. This exemption applies
22    only to the sale of qualifying tangible personal property
23    to persons who modify, refurbish, complete, replace, or
24    maintain an aircraft and who (i) hold an Air Agency
25    Certificate and are empowered to operate an approved
26    repair station by the Federal Aviation Administration,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

10300SB1150sam001- 193 -LRB103 05594 HLH 60012 a

1    under this Act. A marketplace seller claiming this
2    exemption shall maintain books and records demonstrating
3    that the use tax on such sales has been collected and
4    remitted by a marketplace facilitator. Marketplace sellers
5    that have properly remitted tax under this Act on such
6    sales may file a claim for credit as provided in Section 6
7    of this Act. No claim is allowed, however, for such taxes
8    for which a credit or refund has been issued to the
9    marketplace facilitator under the Use Tax Act, or for
10    which the marketplace facilitator has filed a claim for
11    credit or refund under the Use Tax Act.
12        (46) Beginning July 1, 2022, breast pumps, breast pump
13    collection and storage supplies, and breast pump kits.
14    This item (46) is exempt from the provisions of Section
15    2-70. As used in this item (46):
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        (47) (46) Tangible personal property sold by or on
3    behalf of the State Treasurer pursuant to the Revised
4    Uniform Unclaimed Property Act. This item (47) (46) is
5    exempt from the provisions of Section 2-70.
6    (48) Beginning on July 1, 2022, as defined in Section
72-10, food for human consumption that is to be consumed off the
8premises where it is sold (other than alcoholic beverages,
9food consisting of or infused with adult use cannabis, soft
10drinks, and food that has been prepared for immediate
11consumption). This item (48) is exempt from the provisions of
12Section 2-70.
13    (49) Beginning on July 1, 2023, the following items, as
14defined in Section 2-10:
15        (A) prescription and nonprescription medicines, drugs,
16    and medical appliances;
17        (B) products classified as Class III medical devices
18    by the United States Food and Drug Administration that are
19    used for cancer treatment pursuant to a prescription, as
20    well as any accessories and components related to those
21    devices;
22        (C) modifications to a motor vehicle for the purpose
23    of rendering it usable by a person with a disability; and
24        (D) insulin, blood sugar testing materials, syringes,
25    and needles used by human diabetics.
26    This item (49) is exempt from the provisions of Section

 

 

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12-70.
2(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
3101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
48-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22;
5102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813,
6eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
 
7    (35 ILCS 120/2-10)
8    Sec. 2-10. Rate of tax. Unless otherwise provided in this
9Section, the tax imposed by this Act is at the rate of 6.25% of
10gross receipts from sales of tangible personal property made
11in the course of business.
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    Beginning on August 6, 2010 through August 15, 2010, and
17beginning again on August 5, 2022 through August 14, 2022,
18with respect to sales tax holiday items as defined in Section
192-8 of this Act, the tax is imposed at the rate of 1.25%.
20    Within 14 days after July 1, 2000 (the effective date of
21Public Act 91-872) this amendatory Act of the 91st General
22Assembly, each retailer of motor fuel and gasohol shall cause
23the following notice to be posted in a prominently visible
24place on each retail dispensing device that is used to
25dispense motor fuel or gasohol in the State of Illinois: "As of

 

 

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1July 1, 2000, the State of Illinois has eliminated the State's
2share of sales tax on motor fuel and gasohol through December
331, 2000. The price on this pump should reflect the
4elimination of the tax." The notice shall be printed in bold
5print on a sign that is no smaller than 4 inches by 8 inches.
6The sign shall be clearly visible to customers. Any retailer
7who fails to post or maintain a required sign through December
831, 2000 is guilty of a petty offense for which the fine shall
9be $500 per day per each retail premises where a violation
10occurs.
11    With respect to gasohol, as defined in the Use Tax Act, the
12tax imposed by this Act applies to (i) 70% of the proceeds of
13sales made on or after January 1, 1990, and before July 1,
142003, (ii) 80% of the proceeds of sales made on or after July
151, 2003 and on or before July 1, 2017, and (iii) 100% of the
16proceeds of sales made thereafter. If, at any time, however,
17the tax under this Act on sales of gasohol, as defined in the
18Use Tax Act, is imposed at the rate of 1.25%, then the tax
19imposed by this Act applies to 100% of the proceeds of sales of
20gasohol made during that time.
21    With respect to majority blended ethanol fuel, as defined
22in the Use Tax Act, the tax imposed by this Act does not apply
23to the proceeds of sales made on or after July 1, 2003 and on
24or before December 31, 2023 but applies to 100% of the proceeds
25of sales made thereafter.
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 proceeds
3of sales made on or after July 1, 2003 and on or before
4December 31, 2018 and (ii) 100% of the proceeds of sales made
5after December 31, 2018 and before January 1, 2024. On and
6after January 1, 2024 and on or before December 31, 2030, the
7taxation of biodiesel, renewable diesel, and biodiesel blends
8shall be as provided in Section 3-5.1 of the Use Tax Act. If,
9at any time, however, the tax under this Act on sales of
10biodiesel blends, as defined in the Use Tax Act, with no less
11than 1% and no more than 10% biodiesel is imposed at the rate
12of 1.25%, then the tax imposed by this Act applies to 100% of
13the proceeds of sales of biodiesel blends with no less than 1%
14and no more than 10% biodiesel made during that time.
15    With respect to biodiesel, as defined in the Use Tax Act,
16and biodiesel blends, as defined in the Use Tax Act, with more
17than 10% but no more than 99% biodiesel, the tax imposed by
18this Act does not apply to the proceeds of sales made on or
19after July 1, 2003 and on or before December 31, 2023. On and
20after January 1, 2024 and on or before December 31, 2030, the
21taxation of biodiesel, renewable diesel, and biodiesel blends
22shall be as provided in Section 3-5.1 of the Use Tax Act.
23    Until July 1, 2022 and beginning again on July 1, 2023,
24with respect to food for human consumption that is to be
25consumed off the premises where it is sold (other than
26alcoholic beverages, food consisting of or infused with adult

 

 

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1use cannabis, soft drinks, and food that has been prepared for
2immediate consumption), the tax is imposed at the rate of 1%.
3Beginning July 1, 2022 and until July 1, 2023, with respect to
4food for human consumption that is to be consumed off the
5premises where it is sold (other than alcoholic beverages,
6food consisting of or infused with adult use cannabis, soft
7drinks, and food that has been prepared for immediate
8consumption), the tax is imposed at the rate of 0%.
9    Until July 1, 2023, with With respect to prescription and
10nonprescription medicines, drugs, medical appliances, products
11classified as Class III medical devices by the United States
12Food and Drug Administration that are used for cancer
13treatment pursuant to a prescription, as well as any
14accessories and components related to those devices,
15modifications to a motor vehicle for the purpose of rendering
16it usable by a person with a disability, and insulin, blood
17sugar testing materials, syringes, and needles used by human
18diabetics, the tax is imposed at the rate of 1%. For the
19purposes of this Section, until September 1, 2009: the term
20"soft drinks" means any complete, finished, ready-to-use,
21non-alcoholic drink, whether carbonated or not, including, but
22not limited to, soda water, cola, fruit juice, vegetable
23juice, carbonated water, and all other preparations commonly
24known as soft drinks of whatever kind or description that are
25contained in any closed or sealed bottle, can, carton, or
26container, regardless of size; but "soft drinks" does not

 

 

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

 

 

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1preparation of sugar, honey, or other natural or artificial
2sweeteners in combination with chocolate, fruits, nuts or
3other ingredients or flavorings in the form of bars, drops, or
4pieces. "Candy" does not include any preparation that contains
5flour or requires refrigeration.
6    Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "nonprescription medicines and
8drugs" does not include grooming and hygiene products. For
9purposes of this Section, "grooming and hygiene products"
10includes, but is not limited to, soaps and cleaning solutions,
11shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
12lotions and screens, unless those products are available by
13prescription only, regardless of whether the products meet the
14definition of "over-the-counter-drugs". For the purposes of
15this paragraph, "over-the-counter-drug" means a drug for human
16use that contains a label that identifies the product as a drug
17as required by 21 CFR C.F.R. 201.66. The
18"over-the-counter-drug" label includes:
19        (A) a A "Drug Facts" panel; or
20        (B) a A statement of the "active ingredient(s)" with a
21    list of those ingredients contained in the compound,
22    substance or preparation.
23    Beginning on January 1, 2014 (the effective date of Public
24Act 98-122) this amendatory Act of the 98th General Assembly,
25"prescription and nonprescription medicines and drugs"
26includes 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. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
9102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.
104-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;
11102-700, Article 65, Section 65-10, eff. 4-19-22; revised
126-1-22.)
 
13    (35 ILCS 120/3)  (from Ch. 120, par. 442)
14    Sec. 3. Except as provided in this Section, on or before
15the twentieth day of each calendar month, every person engaged
16in the business of selling tangible personal property at
17retail in this State during the preceding calendar month shall
18file a return with the Department, stating:
19        1. The name of the seller;
20        2. His residence address and the address of his
21    principal place of business and the address of the
22    principal place of business (if that is a different
23    address) from which he engages in the business of selling
24    tangible personal property at retail in this State;
25        3. Total amount of receipts received by him during the

 

 

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

 

 

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1    (other than alcoholic beverages, food consisting of or
2    infused with adult use cannabis, soft drinks, and food
3    that has been prepared for immediate consumption) but for
4    the 0% rate imposed under Public Act 102-700 this
5    amendatory Act of the 102nd General Assembly;
6        9. The signature of the taxpayer; and
7        10. Such other reasonable information as the
8    Department may require.
9    On and after January 1, 2018, except for returns required
10to be filed prior to January 1, 2023 for motor vehicles,
11watercraft, aircraft, and trailers that are required to be
12registered with an agency of this State, with respect to
13retailers whose annual gross receipts average $20,000 or more,
14all returns required to be filed pursuant to this Act shall be
15filed electronically. On and after January 1, 2023, with
16respect to retailers whose annual gross receipts average
17$20,000 or more, all returns required to be filed pursuant to
18this Act, including, but not limited to, returns for motor
19vehicles, watercraft, aircraft, and trailers that are required
20to be registered with an agency of this State, shall be filed
21electronically. Retailers who demonstrate that they do not
22have access to the Internet or demonstrate hardship in filing
23electronically may petition the Department to waive the
24electronic filing requirement.
25    If a taxpayer fails to sign a return within 30 days after
26the proper notice and demand for signature by the Department,

 

 

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1the return shall be considered valid and any amount shown to be
2due on the return shall be deemed assessed.
3    Each return shall be accompanied by the statement of
4prepaid tax issued pursuant to Section 2e for which credit is
5claimed.
6    Prior to October 1, 2003, and on and after September 1,
72004 a retailer may accept a Manufacturer's Purchase Credit
8certification from a purchaser in satisfaction of Use Tax as
9provided in Section 3-85 of the Use Tax Act if the purchaser
10provides the appropriate documentation as required by Section
113-85 of the Use Tax Act. A Manufacturer's Purchase Credit
12certification, accepted by a retailer prior to October 1, 2003
13and on and after September 1, 2004 as provided in Section 3-85
14of the Use Tax Act, may be used by that retailer to satisfy
15Retailers' Occupation Tax liability in the amount claimed in
16the certification, not to exceed 6.25% of the receipts subject
17to tax from a qualifying purchase. A Manufacturer's Purchase
18Credit reported on any original or amended return filed under
19this Act after October 20, 2003 for reporting periods prior to
20September 1, 2004 shall be disallowed. Manufacturer's Purchase
21Credit reported on annual returns due on or after January 1,
222005 will be disallowed for periods prior to September 1,
232004. No Manufacturer's Purchase Credit may be used after
24September 30, 2003 through August 31, 2004 to satisfy any tax
25liability imposed under this Act, including any audit
26liability.

 

 

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

 

 

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1return shall be as otherwise provided in this Section.
2Notwithstanding any other provisions of this Act to the
3contrary, retailers selling aviation fuel shall file all
4aviation fuel tax returns and shall make all aviation fuel tax
5payments by electronic means in the manner and form required
6by the Department. For purposes of this Section, "aviation
7fuel" means jet fuel and aviation gasoline.
8    Beginning on October 1, 2003, any person who is not a
9licensed distributor, importing distributor, or manufacturer,
10as defined in the Liquor Control Act of 1934, but is engaged in
11the business of selling, at retail, alcoholic liquor shall
12file a statement with the Department of Revenue, in a format
13and at a time prescribed by the Department, showing the total
14amount paid for alcoholic liquor purchased during the
15preceding month and such other information as is reasonably
16required by the Department. The Department may adopt rules to
17require that this statement be filed in an electronic or
18telephonic format. Such rules may provide for exceptions from
19the filing requirements of this paragraph. For the purposes of
20this paragraph, the term "alcoholic liquor" shall have the
21meaning prescribed in the Liquor Control Act of 1934.
22    Beginning on October 1, 2003, every distributor, importing
23distributor, and manufacturer of alcoholic liquor as defined
24in the Liquor Control Act of 1934, shall file a statement with
25the Department of Revenue, no later than the 10th day of the
26month for the preceding month during which transactions

 

 

10300SB1150sam001- 208 -LRB103 05594 HLH 60012 a

1occurred, by electronic means, showing the total amount of
2gross receipts from the sale of alcoholic liquor sold or
3distributed during the preceding month to purchasers;
4identifying the purchaser to whom it was sold or distributed;
5the purchaser's tax registration number; and such other
6information reasonably required by the Department. A
7distributor, importing distributor, or manufacturer of
8alcoholic liquor must personally deliver, mail, or provide by
9electronic means to each retailer listed on the monthly
10statement a report containing a cumulative total of that
11distributor's, importing distributor's, or manufacturer's
12total sales of alcoholic liquor to that retailer no later than
13the 10th day of the month for the preceding month during which
14the transaction occurred. The distributor, importing
15distributor, or manufacturer shall notify the retailer as to
16the method by which the distributor, importing distributor, or
17manufacturer will provide the sales information. If the
18retailer is unable to receive the sales information by
19electronic means, the distributor, importing distributor, or
20manufacturer shall furnish the sales information by personal
21delivery or by mail. For purposes of this paragraph, the term
22"electronic means" includes, but is not limited to, the use of
23a secure Internet website, e-mail, or facsimile.
24    If a total amount of less than $1 is payable, refundable or
25creditable, such amount shall be disregarded if it is less
26than 50 cents and shall be increased to $1 if it is 50 cents or

 

 

10300SB1150sam001- 209 -LRB103 05594 HLH 60012 a

1more.
2    Notwithstanding any other provision of this Act to the
3contrary, retailers subject to tax on cannabis shall file all
4cannabis tax returns and shall make all cannabis tax payments
5by electronic means in the manner and form required by the
6Department.
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" 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

 

 

10300SB1150sam001- 210 -LRB103 05594 HLH 60012 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    Any amount which is required to be shown or reported on any
22return or other document under this Act shall, if such amount
23is not a whole-dollar amount, be increased to the nearest
24whole-dollar amount in any case where the fractional part of a
25dollar is 50 cents or more, and decreased to the nearest
26whole-dollar amount where the fractional part of a dollar is

 

 

10300SB1150sam001- 211 -LRB103 05594 HLH 60012 a

1less than 50 cents.
2    If the retailer is otherwise required to file a monthly
3return and if the retailer's average monthly tax liability to
4the 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 retailer is otherwise required to file a monthly or
14quarterly return and if the retailer's average monthly tax
15liability with 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 retailer may file his return, in the
24case of any retailer who ceases to engage in a kind of business
25which makes him responsible for filing returns under this Act,
26such retailer shall file a final return under this Act with the

 

 

10300SB1150sam001- 212 -LRB103 05594 HLH 60012 a

1Department not more than one month after discontinuing such
2business.
3    Where the same person has more than one business
4registered with the Department under separate registrations
5under this Act, such person may not file each return that is
6due as a single return covering all such registered
7businesses, but shall file separate returns for each such
8registered business.
9    In addition, with respect to motor vehicles, watercraft,
10aircraft, and trailers that are required to be registered with
11an agency of this State, except as otherwise provided in this
12Section, every retailer selling this kind of tangible personal
13property shall file, with the Department, upon a form to be
14prescribed and supplied by the Department, a separate return
15for each such item of tangible personal property which the
16retailer sells, except that if, in the same transaction, (i) a
17retailer of aircraft, watercraft, motor vehicles or trailers
18transfers more than one aircraft, watercraft, motor vehicle or
19trailer to another aircraft, watercraft, motor vehicle
20retailer or trailer retailer for the purpose of resale or (ii)
21a retailer of aircraft, watercraft, motor vehicles, or
22trailers transfers more than one aircraft, watercraft, motor
23vehicle, or trailer to a purchaser for use as a qualifying
24rolling stock as provided in Section 2-5 of this Act, then that
25seller may report the transfer of all aircraft, watercraft,
26motor vehicles or trailers involved in that transaction to the

 

 

10300SB1150sam001- 213 -LRB103 05594 HLH 60012 a

1Department on the same uniform invoice-transaction reporting
2return form. For purposes of this Section, "watercraft" means
3a Class 2, Class 3, or Class 4 watercraft as defined in Section
43-2 of the Boat Registration and Safety Act, a personal
5watercraft, or any boat equipped with an inboard motor.
6    In addition, with respect to motor vehicles, watercraft,
7aircraft, and trailers that are required to be registered with
8an agency of this State, every person who is engaged in the
9business of leasing or renting such items and who, in
10connection with such business, sells any such item to a
11retailer for the purpose of resale is, notwithstanding any
12other provision of this Section to the contrary, authorized to
13meet the return-filing requirement of this Act by reporting
14the transfer of all the aircraft, watercraft, motor vehicles,
15or trailers transferred for resale during a month to the
16Department on the same uniform invoice-transaction reporting
17return form on or before the 20th of the month following the
18month in which the transfer takes place. Notwithstanding any
19other provision of this Act to the contrary, all returns filed
20under this paragraph must be filed by electronic means in the
21manner and form as required by the Department.
22    Any retailer who sells only motor vehicles, watercraft,
23aircraft, or trailers that are required to be registered with
24an agency of this State, so that all retailers' occupation tax
25liability is required to be reported, and is reported, on such
26transaction reporting returns and who is not otherwise

 

 

10300SB1150sam001- 214 -LRB103 05594 HLH 60012 a

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

 

 

10300SB1150sam001- 215 -LRB103 05594 HLH 60012 a

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

 

 

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

 

 

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1not paid the tax to the retailer, such user may certify to the
2fact of such delay by the retailer and may (upon the Department
3being satisfied of the truth of such certification) transmit
4the information required by the transaction reporting return
5and the remittance for tax or proof of exemption directly to
6the Department and obtain his tax receipt or exemption
7