Illinois General Assembly - Full Text of SB2066
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Full Text of SB2066  102nd General Assembly

SB2066sam001 102ND GENERAL ASSEMBLY

Sen. Cristina Castro

Filed: 3/25/2021

 

 


 

 


 
10200SB2066sam001LRB102 16579 HLH 24286 a

1
AMENDMENT TO SENATE BILL 2066

2    AMENDMENT NO. ______. Amend Senate Bill 2066 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Retailers' Occupation Tax Act is amended
5by changing Sections 1, 2-5, and 3 as follows:
 
6    (35 ILCS 120/1)  (from Ch. 120, par. 440)
7    Sec. 1. Definitions. "Sale at retail" means any transfer
8of the ownership of or title to tangible personal property to a
9purchaser, for the purpose of use or consumption, and not for
10the purpose of resale in any form as tangible personal
11property to the extent not first subjected to a use for which
12it was purchased, for a valuable consideration: Provided that
13the property purchased is deemed to be purchased for the
14purpose of resale, despite first being used, to the extent to
15which it is resold as an ingredient of an intentionally
16produced product or byproduct of manufacturing. For this

 

 

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

 

 

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1Illinois florist's sales transaction in which the purchase
2order is received in Illinois by a florist and the sale is for
3use or consumption, but the Illinois florist has a florist in
4another state deliver the property to the purchaser or the
5purchaser's donee in such other state.
6    Nonreusable tangible personal property that is used by
7persons engaged in the business of operating a restaurant,
8cafeteria, or drive-in is a sale for resale when it is
9transferred to customers in the ordinary course of business as
10part of the sale of food or beverages and is used to deliver,
11package, or consume food or beverages, regardless of where
12consumption of the food or beverages occurs. Examples of those
13items include, but are not limited to nonreusable, paper and
14plastic cups, plates, baskets, boxes, sleeves, buckets or
15other containers, utensils, straws, placemats, napkins, doggie
16bags, and wrapping or packaging materials that are transferred
17to customers as part of the sale of food or beverages in the
18ordinary course of business.
19    The purchase, employment and transfer of such tangible
20personal property as newsprint and ink for the primary purpose
21of conveying news (with or without other information) is not a
22purchase, use or sale of tangible personal property.
23    A person whose activities are organized and conducted
24primarily as a not-for-profit service enterprise, and who
25engages in selling tangible personal property at retail
26(whether to the public or merely to members and their guests)

 

 

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

 

 

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1acquires the ownership of or title to tangible personal
2property for a valuable consideration.
3    "Reseller of motor fuel" means any person engaged in the
4business of selling or delivering or transferring title of
5motor fuel to another person other than for use or
6consumption. No person shall act as a reseller of motor fuel
7within this State without first being registered as a reseller
8pursuant to Section 2c or a retailer pursuant to Section 2a.
9    "Selling price" or the "amount of sale" means the
10consideration for a sale valued in money whether received in
11money or otherwise, including cash, credits, property, other
12than as hereinafter provided, and services, but, prior to
13January 1, 2020, not including the value of or credit given for
14traded-in tangible personal property where the item that is
15traded-in is of like kind and character as that which is being
16sold; beginning January 1, 2020, "selling price" includes the
17portion of the value of or credit given for traded-in motor
18vehicles of the First Division as defined in Section 1-146 of
19the Illinois Vehicle Code of like kind and character as that
20which is being sold that exceeds $10,000. "Selling price"
21shall be determined without any deduction on account of the
22cost of the property sold, the cost of materials used, labor or
23service cost or any other expense whatsoever, but does not
24include charges that are added to prices by sellers on account
25of the seller's tax liability under this Act, or on account of
26the seller's duty to collect, from the purchaser, the tax that

 

 

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1is imposed by the Use Tax Act, or, except as otherwise provided
2with respect to any cigarette tax imposed by a home rule unit,
3on account of the seller's tax liability under any local
4occupation tax administered by the Department, or, except as
5otherwise provided with respect to any cigarette tax imposed
6by a home rule unit on account of the seller's duty to collect,
7from the purchasers, the tax that is imposed under any local
8use tax administered by the Department. Effective December 1,
91985, "selling price" shall include charges that are added to
10prices by sellers on account of the seller's tax liability
11under the Cigarette Tax Act, on account of the sellers' duty to
12collect, from the purchaser, the tax imposed under the
13Cigarette Use Tax Act, and on account of the seller's duty to
14collect, from the purchaser, any cigarette tax imposed by a
15home rule unit.
16    Notwithstanding any law to the contrary, for any motor
17vehicle, as defined in Section 1-146 of the Vehicle Code, that
18is sold on or after January 1, 2015 for the purpose of leasing
19the vehicle for a defined period that is longer than one year
20and (1) is a motor vehicle of the second division that: (A) is
21a self-contained motor vehicle designed or permanently
22converted to provide living quarters for recreational,
23camping, or travel use, with direct walk through access to the
24living quarters from the driver's seat; (B) is of the van
25configuration designed for the transportation of not less than
267 nor more than 16 passengers; or (C) has a gross vehicle

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    "Marketplace facilitator" does not include any person
2licensed under the Auction License Act. This exemption does
3not apply to any person who is an Internet auction listing
4service, as defined by the Auction License Act.
5    "Marketplace seller" means a person that makes sales
6through a marketplace operated by an unrelated third party
7marketplace facilitator.
8(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
 
9    (35 ILCS 120/2-5)
10    Sec. 2-5. Exemptions. Gross receipts from proceeds from
11the sale of the following tangible personal property are
12exempt from the tax imposed by this Act:
13        (1) Farm chemicals.
14        (2) Farm machinery and equipment, both new and used,
15    including that manufactured on special order, certified by
16    the purchaser to be used primarily for production
17    agriculture or State or federal agricultural programs,
18    including individual replacement parts for the machinery
19    and equipment, including machinery and equipment purchased
20    for lease, and including implements of husbandry defined
21    in Section 1-130 of the Illinois Vehicle Code, farm
22    machinery and agricultural chemical and fertilizer
23    spreaders, and nurse wagons required to be registered
24    under Section 3-809 of the Illinois Vehicle Code, but
25    excluding other motor vehicles required to be registered

 

 

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

 

 

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

 

 

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1        (7) Until July 1, 2003, proceeds of that portion of
2    the selling price of a passenger car the sale of which is
3    subject to the Replacement Vehicle Tax.
4        (8) Personal property sold to an Illinois county fair
5    association for use in conducting, operating, or promoting
6    the county fair.
7        (9) Personal property sold to a not-for-profit arts or
8    cultural organization that establishes, by proof required
9    by the Department by rule, that it has received an
10    exemption under Section 501(c)(3) of the Internal Revenue
11    Code and that is organized and operated primarily for the
12    presentation or support of arts or cultural programming,
13    activities, or services. These organizations include, but
14    are not limited to, music and dramatic arts organizations
15    such as symphony orchestras and theatrical groups, arts
16    and cultural service organizations, local arts councils,
17    visual arts organizations, and media arts organizations.
18    On and after July 1, 2001 (the effective date of Public Act
19    92-35), however, an entity otherwise eligible for this
20    exemption shall not make tax-free purchases unless it has
21    an active identification number issued by the Department.
22        (10) Personal property sold by a corporation, society,
23    association, foundation, institution, or organization,
24    other than a limited liability company, that is organized
25    and operated as a not-for-profit service enterprise for
26    the benefit of persons 65 years of age or older if the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    purchased for lease; but excluding motor vehicles required
2    to be registered under the Illinois Vehicle Code.
3        (20) Photoprocessing machinery and equipment,
4    including repair and replacement parts, both new and used,
5    including that manufactured on special order, certified by
6    the purchaser to be used primarily for photoprocessing,
7    and including photoprocessing machinery and equipment
8    purchased for lease.
9        (21) Until July 1, 2023, coal and aggregate
10    exploration, mining, off-highway hauling, processing,
11    maintenance, and reclamation equipment, including
12    replacement parts and equipment, and including equipment
13    purchased for lease, but excluding motor vehicles required
14    to be registered under the Illinois Vehicle Code. The
15    changes made to this Section by Public Act 97-767 apply on
16    and after July 1, 2003, but no claim for credit or refund
17    is allowed on or after August 16, 2013 (the effective date
18    of Public Act 98-456) for such taxes paid during the
19    period beginning July 1, 2003 and ending on August 16,
20    2013 (the effective date of Public Act 98-456).
21        (22) Until June 30, 2013, fuel and petroleum products
22    sold to or used by an air carrier, certified by the carrier
23    to be used for consumption, shipment, or storage in the
24    conduct of its business as an air common carrier, for a
25    flight destined for or returning from a location or
26    locations outside the United States without regard to

 

 

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1    previous or subsequent domestic stopovers.
2        Beginning July 1, 2013, fuel and petroleum products
3    sold to or used by an air carrier, certified by the carrier
4    to be used for consumption, shipment, or storage in the
5    conduct of its business as an air common carrier, for a
6    flight that (i) is engaged in foreign trade or is engaged
7    in trade between the United States and any of its
8    possessions and (ii) transports at least one individual or
9    package for hire from the city of origination to the city
10    of final destination on the same aircraft, without regard
11    to a change in the flight number of that aircraft.
12        (23) A transaction in which the purchase order is
13    received by a florist who is located outside Illinois, but
14    who has a florist located in Illinois deliver the property
15    to the purchaser or the purchaser's donee in Illinois.
16        (24) Fuel consumed or used in the operation of ships,
17    barges, or vessels that are used primarily in or for the
18    transportation of property or the conveyance of persons
19    for hire on rivers bordering on this State if the fuel is
20    delivered by the seller to the purchaser's barge, ship, or
21    vessel while it is afloat upon that bordering river.
22        (25) Except as provided in item (25-5) of this
23    Section, a motor vehicle sold in this State to a
24    nonresident even though the motor vehicle is delivered to
25    the nonresident in this State, if the motor vehicle is not
26    to be titled in this State, and if a drive-away permit is

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    under Section 2d of the Use Tax Act are exempt from tax
2    under this Act. A marketplace seller claiming this
3    exemption shall maintain books and records demonstrating
4    that the use tax on such sales has been collected and
5    remitted by a marketplace facilitator. Marketplace sellers
6    that have properly remitted tax under this Act on such
7    sales may file a claim for credit as provided in Section 6
8    of this Act. No claim is allowed, however, for such taxes
9    for which a credit or refund has been issued to the
10    marketplace facilitator under the Use Tax Act, or for
11    which the marketplace facilitator has filed a claim for
12    credit or refund under the Use Tax Act.
13(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
14100-437, eff. 1-1-18; 100-594, eff. 6-29-18; 100-863, eff.
158-14-18; 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81,
16eff. 7-12-19; 101-629, eff. 2-5-20.)
 
17    (35 ILCS 120/3)  (from Ch. 120, par. 442)
18    Sec. 3. Except as provided in this Section, on or before
19the twentieth day of each calendar month, every person engaged
20in the business of selling tangible personal property at
21retail in this State during the preceding calendar month shall
22file a return with the Department, stating:
23        1. The name of the seller;
24        2. His residence address and the address of his
25    principal place of business and the address of the

 

 

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1    principal place of business (if that is a different
2    address) from which he engages in the business of selling
3    tangible personal property at retail in this State;
4        3. Total amount of receipts received by him during the
5    preceding calendar month or quarter, as the case may be,
6    from sales of tangible personal property, and from
7    services furnished, by him during such preceding calendar
8    month or quarter;
9        4. Total amount received by him during the preceding
10    calendar month or quarter on charge and time sales of
11    tangible personal property, and from services furnished,
12    by him prior to the month or quarter for which the return
13    is filed;
14        5. Deductions allowed by law;
15        6. Gross receipts which were received by him during
16    the preceding calendar month or quarter and upon the basis
17    of which the tax is imposed;
18        7. The amount of credit provided in Section 2d of this
19    Act;
20        8. The amount of tax due;
21        9. The signature of the taxpayer; and
22        10. Such other reasonable information as the
23    Department may require.
24    On and after January 1, 2018, except for returns for motor
25vehicles, watercraft, aircraft, and trailers that are required
26to be registered with an agency of this State, with respect to

 

 

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1retailers whose annual gross receipts average $20,000 or more,
2all returns required to be filed pursuant to this Act shall be
3filed electronically. Retailers who demonstrate that they do
4not have access to the Internet or demonstrate hardship in
5filing electronically may petition the Department to waive the
6electronic filing requirement.
7    If a taxpayer fails to sign a return within 30 days after
8the proper notice and demand for signature by the Department,
9the return shall be considered valid and any amount shown to be
10due on the return shall be deemed assessed.
11    Each return shall be accompanied by the statement of
12prepaid tax issued pursuant to Section 2e for which credit is
13claimed.
14    Prior to October 1, 2003, and on and after September 1,
152004 a retailer may accept a Manufacturer's Purchase Credit
16certification from a purchaser in satisfaction of Use Tax as
17provided in Section 3-85 of the Use Tax Act if the purchaser
18provides the appropriate documentation as required by Section
193-85 of the Use Tax Act. A Manufacturer's Purchase Credit
20certification, accepted by a retailer prior to October 1, 2003
21and on and after September 1, 2004 as provided in Section 3-85
22of the Use Tax Act, may be used by that retailer to satisfy
23Retailers' Occupation Tax liability in the amount claimed in
24the certification, not to exceed 6.25% of the receipts subject
25to tax from a qualifying purchase. A Manufacturer's Purchase
26Credit reported on any original or amended return filed under

 

 

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

 

 

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

 

 

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

 

 

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1electronic means, the distributor, importing distributor, or
2manufacturer shall furnish the sales information by personal
3delivery or by mail. For purposes of this paragraph, the term
4"electronic means" includes, but is not limited to, the use of
5a secure Internet website, e-mail, or facsimile.
6    If a total amount of less than $1 is payable, refundable or
7creditable, such amount shall be disregarded if it is less
8than 50 cents and shall be increased to $1 if it is 50 cents or
9more.
10    Notwithstanding any other provision of this Act to the
11contrary, retailers subject to tax on cannabis shall file all
12cannabis tax returns and shall make all cannabis tax payments
13by electronic means in the manner and form required by the
14Department.
15    Beginning October 1, 1993, a taxpayer who has an average
16monthly tax liability of $150,000 or more shall make all
17payments required by rules of the Department by electronic
18funds transfer. Beginning October 1, 1994, a taxpayer who has
19an average monthly tax liability of $100,000 or more shall
20make all payments required by rules of the Department by
21electronic funds transfer. Beginning October 1, 1995, a
22taxpayer who has an average monthly tax liability of $50,000
23or more shall make all payments required by rules of the
24Department by electronic funds transfer. Beginning October 1,
252000, a taxpayer who has an annual tax liability of $200,000 or
26more shall make all payments required by rules of the

 

 

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

 

 

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

 

 

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

 

 

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1trailer to another aircraft, watercraft, motor vehicle
2retailer or trailer retailer for the purpose of resale or (ii)
3a retailer of aircraft, watercraft, motor vehicles, or
4trailers transfers more than one aircraft, watercraft, motor
5vehicle, or trailer to a purchaser for use as a qualifying
6rolling stock as provided in Section 2-5 of this Act, then that
7seller may report the transfer of all aircraft, watercraft,
8motor vehicles or trailers involved in that transaction to the
9Department on the same uniform invoice-transaction reporting
10return form. For purposes of this Section, "watercraft" means
11a Class 2, Class 3, or Class 4 watercraft as defined in Section
123-2 of the Boat Registration and Safety Act, a personal
13watercraft, or any boat equipped with an inboard motor.
14    In addition, with respect to motor vehicles, watercraft,
15aircraft, and trailers that are required to be registered with
16an agency of this State, every person who is engaged in the
17business of leasing or renting such items and who, in
18connection with such business, sells any such item to a
19retailer for the purpose of resale is, notwithstanding any
20other provision of this Section to the contrary, authorized to
21meet the return-filing requirement of this Act by reporting
22the transfer of all the aircraft, watercraft, motor vehicles,
23or trailers transferred for resale during a month to the
24Department on the same uniform invoice-transaction reporting
25return form on or before the 20th of the month following the
26month in which the transfer takes place. Notwithstanding any

 

 

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

 

 

10200SB2066sam001- 50 -LRB102 16579 HLH 24286 a

1evidence that such tax is not due in that particular instance,
2if that is claimed to be the fact); the place and date of the
3sale; a sufficient identification of the property sold; such
4other information as is required in Section 5-402 of the
5Illinois Vehicle Code, and such other information as the
6Department may reasonably require.
7    The transaction reporting return in the case of watercraft
8or aircraft must show the name and address of the seller; the
9name and address of the purchaser; the amount of the selling
10price 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, and
22such other information as the Department may reasonably
23require.
24    Such transaction reporting return shall be filed not later
25than 20 days after the day of delivery of the item that is
26being sold, but may be filed by the retailer at any time sooner

 

 

10200SB2066sam001- 51 -LRB102 16579 HLH 24286 a

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

 

 

10200SB2066sam001- 52 -LRB102 16579 HLH 24286 a

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

 

 

10200SB2066sam001- 53 -LRB102 16579 HLH 24286 a

1may be, in case the seller had theretofore included the
2receipts from the sale of such tangible personal property in a
3return filed by him and had paid the tax imposed by this Act
4with respect to such receipts.
5    Where the seller is a corporation, the return filed on
6behalf of such corporation shall be signed by the president,
7vice-president, secretary or treasurer or by the properly
8accredited agent of such corporation.
9    Where the seller is a limited liability company, the
10return filed on behalf of the limited liability company shall
11be signed by a manager, member, or properly accredited agent
12of the limited liability company.
13    Except as provided in this Section, the retailer filing
14the return under this Section shall, at the time of filing such
15return, pay to the Department the amount of tax imposed by this
16Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
17on and after January 1, 1990, or $5 per calendar year,
18whichever is greater, which is allowed to reimburse the
19retailer for the expenses incurred in keeping records,
20preparing and filing returns, remitting the tax and supplying
21data to the Department on request. On and after January 1,
222021, a certified service provider, as defined in the Leveling
23the Playing Field for Illinois Retail Act, filing the return
24under this Section on behalf of a remote retailer shall, at the
25time of such return, pay to the Department the amount of tax
26imposed by this Act less a discount of 1.75%. A remote retailer

 

 

10200SB2066sam001- 54 -LRB102 16579 HLH 24286 a

1using a certified service provider to file a return on its
2behalf, as provided in the Leveling the Playing Field for
3Illinois Retail Act, is not eligible for the discount. The
4discount under this Section is not allowed for the 1.25%
5portion of taxes paid on aviation fuel that is subject to the
6revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
747133. Any prepayment made pursuant to Section 2d of this Act
8shall be included in the amount on which such 2.1% or 1.75%
9discount is computed. In the case of retailers who report and
10pay the tax on a transaction by transaction basis, as provided
11in this Section, such discount shall be taken with each such
12tax remittance instead of when such retailer files his
13periodic return. The discount allowed under this Section is
14allowed only for returns that are filed in the manner required
15by this Act. The Department may disallow the discount for
16retailers whose certificate of registration is revoked at the
17time the return is filed, but only if the Department's
18decision to revoke the certificate of registration has become
19final.
20    Before October 1, 2000, if the taxpayer's average monthly
21tax liability to the Department under this Act, the Use Tax
22Act, the Service Occupation Tax Act, and the Service Use Tax
23Act, excluding any liability for prepaid sales tax to be
24remitted in accordance with Section 2d of this Act, was
25$10,000 or more during the preceding 4 complete calendar
26quarters, he shall file a return with the Department each

 

 

10200SB2066sam001- 55 -LRB102 16579 HLH 24286 a

1month by the 20th day of the month next following the month
2during which such tax liability is incurred and shall make
3payments to the Department on or before the 7th, 15th, 22nd and
4last day of the month during which such liability is incurred.
5On and after October 1, 2000, if the taxpayer's average
6monthly tax liability to the Department under this Act, the
7Use Tax Act, the Service Occupation Tax Act, and the Service
8Use Tax Act, excluding any liability for prepaid sales tax to
9be remitted in accordance with Section 2d of this Act, was
10$20,000 or more during the preceding 4 complete calendar
11quarters, he shall file a return with the Department each
12month by the 20th day of the month next following the month
13during which such tax liability is incurred and shall make
14payment to the Department on or before the 7th, 15th, 22nd and
15last day of the month during which such liability is incurred.
16If the month during which such tax liability is incurred began
17prior to January 1, 1985, each payment shall be in an amount
18equal to 1/4 of the taxpayer's actual liability for the month
19or an amount set by the Department not to exceed 1/4 of the
20average monthly liability of the taxpayer to the Department
21for the preceding 4 complete calendar quarters (excluding the
22month of highest liability and the month of lowest liability
23in such 4 quarter period). If the month during which such tax
24liability is incurred begins on or after January 1, 1985 and
25prior to January 1, 1987, each payment shall be in an amount
26equal to 22.5% of the taxpayer's actual liability for the

 

 

10200SB2066sam001- 56 -LRB102 16579 HLH 24286 a

1month or 27.5% of the taxpayer's liability for the same
2calendar month of the preceding year. If the month during
3which such tax liability is incurred begins on or after
4January 1, 1987 and prior to January 1, 1988, each payment
5shall be in an amount equal to 22.5% of the taxpayer's actual
6liability for the month or 26.25% of the taxpayer's liability
7for the same calendar month of the preceding year. If the month
8during which such tax liability is incurred begins on or after
9January 1, 1988, and prior to January 1, 1989, or begins on or
10after January 1, 1996, each payment shall be in an amount equal
11to 22.5% of the taxpayer's actual liability for the month or
1225% of the taxpayer's liability for the same calendar month of
13the preceding year. If the month during which such tax
14liability is incurred begins on or after January 1, 1989, and
15prior to January 1, 1996, each payment shall be in an amount
16equal to 22.5% of the taxpayer's actual liability for the
17month or 25% of the taxpayer's liability for the same calendar
18month of the preceding year or 100% of the taxpayer's actual
19liability for the quarter monthly reporting period. The amount
20of such quarter monthly payments shall be credited against the
21final tax liability of the taxpayer's return for that month.
22Before October 1, 2000, once applicable, the requirement of
23the making of quarter monthly payments to the Department by
24taxpayers having an average monthly tax liability of $10,000
25or more as determined in the manner provided above shall
26continue until such taxpayer's average monthly liability to

 

 

10200SB2066sam001- 57 -LRB102 16579 HLH 24286 a

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

 

 

10200SB2066sam001- 58 -LRB102 16579 HLH 24286 a

1reasonably foreseeable future will fall below the $20,000
2threshold stated above, then such taxpayer may petition the
3Department for a change in such taxpayer's reporting status.
4The Department shall change such taxpayer's reporting status
5unless it finds that such change is seasonal in nature and not
6likely to be long term. If any such quarter monthly payment is
7not paid at the time or in the amount required by this Section,
8then the taxpayer shall be liable for penalties and interest
9on the difference between the minimum amount due as a payment
10and the amount of such quarter monthly payment actually and
11timely paid, except insofar as the taxpayer has previously
12made payments for that month to the Department in excess of the
13minimum payments previously due as provided in this Section.
14The Department shall make reasonable rules and regulations to
15govern the quarter monthly payment amount and quarter monthly
16payment dates for taxpayers who file on other than a calendar
17monthly basis.
18    The provisions of this paragraph apply before October 1,
192001. Without regard to whether a taxpayer is required to make
20quarter monthly payments as specified above, any taxpayer who
21is required by Section 2d of this Act to collect and remit
22prepaid taxes and has collected prepaid taxes which average in
23excess of $25,000 per month during the preceding 2 complete
24calendar quarters, shall file a return with the Department as
25required by Section 2f and shall make payments to the
26Department on or before the 7th, 15th, 22nd and last day of the

 

 

10200SB2066sam001- 59 -LRB102 16579 HLH 24286 a

1month during which such liability is incurred. If the month
2during which such tax liability is incurred began prior to
3September 1, 1985 (the effective date of Public Act 84-221),
4each payment shall be in an amount not less than 22.5% of the
5taxpayer's actual liability under Section 2d. If the month
6during which such tax liability is incurred begins on or after
7January 1, 1986, each payment shall be in an amount equal to
822.5% of the taxpayer's actual liability for the month or
927.5% of the taxpayer's liability for the same calendar month
10of the preceding calendar year. If the month during which such
11tax liability is incurred begins on or after January 1, 1987,
12each payment shall be in an amount equal to 22.5% of the
13taxpayer's actual liability for the month or 26.25% of the
14taxpayer's liability for the same calendar month of the
15preceding year. The amount of such quarter monthly payments
16shall be credited against the final tax liability of the
17taxpayer's return for that month filed under this Section or
18Section 2f, as the case may be. Once applicable, the
19requirement of the making of quarter monthly payments to the
20Department pursuant to this paragraph shall continue until
21such taxpayer's average monthly prepaid tax collections during
22the preceding 2 complete calendar quarters is $25,000 or less.
23If any such quarter monthly payment is not paid at the time or
24in the amount required, the taxpayer shall be liable for
25penalties and interest on such difference, except insofar as
26the taxpayer has previously made payments for that month in

 

 

10200SB2066sam001- 60 -LRB102 16579 HLH 24286 a

1excess of the minimum payments previously due.
2    The provisions of this paragraph apply on and after
3October 1, 2001. Without regard to whether a taxpayer is
4required to make quarter monthly payments as specified above,
5any taxpayer who is required by Section 2d of this Act to
6collect and remit prepaid taxes and has collected prepaid
7taxes that average in excess of $20,000 per month during the
8preceding 4 complete calendar quarters shall file a return
9with the Department as required by Section 2f and shall make
10payments to the Department on or before the 7th, 15th, 22nd and
11last day of the month during which the liability is incurred.
12Each payment shall be in an amount equal to 22.5% of the
13taxpayer's actual liability for the month or 25% of the
14taxpayer's liability for the same calendar month of the
15preceding year. The amount of the quarter monthly payments
16shall be credited against the final tax liability of the
17taxpayer's return for that month filed under this Section or
18Section 2f, as the case may be. Once applicable, the
19requirement of the making of quarter monthly payments to the
20Department pursuant to this paragraph shall continue until the
21taxpayer's average monthly prepaid tax collections during the
22preceding 4 complete calendar quarters (excluding the month of
23highest liability and the month of lowest liability) is less
24than $19,000 or until such taxpayer's average monthly
25liability to the Department as computed for each calendar
26quarter of the 4 preceding complete calendar quarters is less

 

 

10200SB2066sam001- 61 -LRB102 16579 HLH 24286 a

1than $20,000. If any such quarter monthly payment is not paid
2at the time or in the amount required, the taxpayer shall be
3liable for penalties and interest on such difference, except
4insofar as the taxpayer has previously made payments for that
5month in excess of the minimum payments previously due.
6    If any payment provided for in this Section exceeds the
7taxpayer's liabilities under this Act, the Use Tax Act, the
8Service Occupation Tax Act and the Service Use Tax Act, as
9shown on an original monthly return, the Department shall, if
10requested by the taxpayer, issue to the taxpayer a credit
11memorandum no later than 30 days after the date of payment. The
12credit evidenced by such credit memorandum may be assigned by
13the taxpayer to a similar taxpayer under this Act, the Use Tax
14Act, the Service Occupation Tax Act or the Service Use Tax Act,
15in accordance with reasonable rules and regulations to be
16prescribed by the Department. If no such request is made, the
17taxpayer may credit such excess payment against tax liability
18subsequently to be remitted to the Department under this Act,
19the Use Tax Act, the Service Occupation Tax Act or the Service
20Use Tax Act, in accordance with reasonable rules and
21regulations prescribed by the Department. If the Department
22subsequently determined that all or any part of the credit
23taken was not actually due to the taxpayer, the taxpayer's
242.1% and 1.75% vendor's discount shall be reduced by 2.1% or
251.75% of the difference between the credit taken and that
26actually due, and that taxpayer shall be liable for penalties

 

 

10200SB2066sam001- 62 -LRB102 16579 HLH 24286 a

1and interest on such difference.
2    If a retailer of motor fuel is entitled to a credit under
3Section 2d of this Act which exceeds the taxpayer's liability
4to the Department under this Act for the month which the
5taxpayer is filing a return, the Department shall issue the
6taxpayer a credit memorandum for the excess.
7    Beginning January 1, 1990, each month the Department shall
8pay into the Local Government Tax Fund, a special fund in the
9State treasury which is hereby created, the net revenue
10realized for the preceding month from the 1% tax imposed under
11this Act.
12    Beginning January 1, 1990, each month the Department shall
13pay into the County and Mass Transit District Fund, a special
14fund in the State treasury which is hereby created, 4% of the
15net revenue realized for the preceding month from the 6.25%
16general rate other than aviation fuel sold on or after
17December 1, 2019. This exception for aviation fuel only
18applies for so long as the revenue use requirements of 49
19U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
20    Beginning August 1, 2000, each month the Department shall
21pay into the County and Mass Transit District Fund 20% of the
22net revenue realized for the preceding month from the 1.25%
23rate on the selling price of motor fuel and gasohol. Beginning
24September 1, 2010, each month the Department shall pay into
25the County and Mass Transit District Fund 20% of the net
26revenue realized for the preceding month from the 1.25% rate

 

 

10200SB2066sam001- 63 -LRB102 16579 HLH 24286 a

1on the selling price of sales tax holiday items.
2    Beginning January 1, 1990, each month the Department shall
3pay into the Local Government Tax Fund 16% of the net revenue
4realized for the preceding month from the 6.25% general rate
5on the selling price of tangible personal property other than
6aviation fuel sold on or after December 1, 2019. This
7exception for aviation fuel only applies for so long as the
8revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
947133 are binding on the State.
10    For aviation fuel sold on or after December 1, 2019, each
11month the Department shall pay into the State Aviation Program
12Fund 20% of the net revenue realized for the preceding month
13from the 6.25% general rate on the selling price of aviation
14fuel, less an amount estimated by the Department to be
15required for refunds of the 20% portion of the tax on aviation
16fuel under this Act, which amount shall be deposited into the
17Aviation Fuel Sales Tax Refund Fund. The Department shall only
18pay moneys into the State Aviation Program Fund and the
19Aviation Fuel Sales Tax Refund Fund under this Act for so long
20as the revenue use requirements of 49 U.S.C. 47107(b) and 49
21U.S.C. 47133 are binding on the State.
22    Beginning August 1, 2000, each month the Department shall
23pay into the Local Government Tax Fund 80% of the net revenue
24realized for the preceding month from the 1.25% rate on the
25selling price of motor fuel and gasohol. Beginning September
261, 2010, each month the Department shall pay into the Local

 

 

10200SB2066sam001- 64 -LRB102 16579 HLH 24286 a

1Government Tax Fund 80% of the net revenue realized for the
2preceding month from the 1.25% rate on the selling price of
3sales tax holiday items.
4    Beginning October 1, 2009, each month the Department shall
5pay into the Capital Projects Fund an amount that is equal to
6an amount estimated by the Department to represent 80% of the
7net revenue realized for the preceding month from the sale of
8candy, grooming and hygiene products, and soft drinks that had
9been taxed at a rate of 1% prior to September 1, 2009 but that
10are now taxed at 6.25%.
11    Beginning July 1, 2011, each month the Department shall
12pay into the Clean Air Act Permit Fund 80% of the net revenue
13realized for the preceding month from the 6.25% general rate
14on the selling price of sorbents used in Illinois in the
15process of sorbent injection as used to comply with the
16Environmental Protection Act or the federal Clean Air Act, but
17the total payment into the Clean Air Act Permit Fund under this
18Act and the Use Tax Act shall not exceed $2,000,000 in any
19fiscal year.
20    Beginning July 1, 2013, each month the Department shall
21pay into the Underground Storage Tank Fund from the proceeds
22collected under this Act, the Use Tax Act, the Service Use Tax
23Act, and the Service Occupation Tax Act an amount equal to the
24average monthly deficit in the Underground Storage Tank Fund
25during the prior year, as certified annually by the Illinois
26Environmental Protection Agency, but the total payment into

 

 

10200SB2066sam001- 65 -LRB102 16579 HLH 24286 a

1the Underground Storage Tank Fund under this Act, the Use Tax
2Act, the Service Use Tax Act, and the Service Occupation Tax
3Act shall not exceed $18,000,000 in any State fiscal year. As
4used in this paragraph, the "average monthly deficit" shall be
5equal to the difference between the average monthly claims for
6payment by the fund and the average monthly revenues deposited
7into the fund, excluding payments made pursuant to this
8paragraph.
9    Beginning July 1, 2015, of the remainder of the moneys
10received by the Department under the Use Tax Act, the Service
11Use Tax Act, the Service Occupation Tax Act, and this Act, each
12month the Department shall deposit $500,000 into the State
13Crime Laboratory Fund.
14    Of the remainder of the moneys received by the Department
15pursuant to this Act, (a) 1.75% thereof shall be paid into the
16Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
17and after July 1, 1989, 3.8% thereof shall be paid into the
18Build Illinois Fund; provided, however, that if in any fiscal
19year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
20may be, of the moneys received by the Department and required
21to be paid into the Build Illinois Fund pursuant to this Act,
22Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
23Act, and Section 9 of the Service Occupation Tax Act, such Acts
24being hereinafter called the "Tax Acts" and such aggregate of
252.2% or 3.8%, as the case may be, of moneys being hereinafter
26called the "Tax Act Amount", and (2) the amount transferred to

 

 

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1the Build Illinois Fund from the State and Local Sales Tax
2Reform Fund shall be less than the Annual Specified Amount (as
3hereinafter defined), an amount equal to the difference shall
4be immediately paid into the Build Illinois Fund from other
5moneys received by the Department pursuant to the Tax Acts;
6the "Annual Specified Amount" means the amounts specified
7below for fiscal years 1986 through 1993:
8Fiscal YearAnnual Specified Amount
91986$54,800,000
101987$76,650,000
111988$80,480,000
121989$88,510,000
131990$115,330,000
141991$145,470,000
151992$182,730,000
161993$206,520,000;
17and means the Certified Annual Debt Service Requirement (as
18defined in Section 13 of the Build Illinois Bond Act) or the
19Tax Act Amount, whichever is greater, for fiscal year 1994 and
20each fiscal year thereafter; and further provided, that if on
21the last business day of any month the sum of (1) the Tax Act
22Amount required to be deposited into the Build Illinois Bond
23Account in the Build Illinois Fund during such month and (2)
24the amount transferred to the Build Illinois Fund from the
25State and Local Sales Tax Reform Fund shall have been less than
261/12 of the Annual Specified Amount, an amount equal to the

 

 

10200SB2066sam001- 67 -LRB102 16579 HLH 24286 a

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

 

 

10200SB2066sam001- 68 -LRB102 16579 HLH 24286 a

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

 

 

10200SB2066sam001- 69 -LRB102 16579 HLH 24286 a

11993         $0
21994 53,000,000
31995 58,000,000
41996 61,000,000
51997 64,000,000
61998 68,000,000
71999 71,000,000
82000 75,000,000
92001 80,000,000
102002 93,000,000
112003 99,000,000
122004103,000,000
132005108,000,000
142006113,000,000
152007119,000,000
162008126,000,000
172009132,000,000
182010139,000,000
192011146,000,000
202012153,000,000
212013161,000,000
222014170,000,000
232015179,000,000
242016189,000,000
252017199,000,000
262018210,000,000

 

 

10200SB2066sam001- 70 -LRB102 16579 HLH 24286 a

12019221,000,000
22020233,000,000
32021300,000,000
42022300,000,000
52023300,000,000
62024 300,000,000
72025 300,000,000
82026 300,000,000
92027 375,000,000
102028 375,000,000
112029 375,000,000
122030 375,000,000
132031 375,000,000
142032 375,000,000
152033375,000,000
162034375,000,000
172035375,000,000
182036450,000,000
19and
20each fiscal year
21thereafter that bonds
22are outstanding under
23Section 13.2 of the
24Metropolitan Pier and
25Exposition Authority Act,
26but not after fiscal year 2060.

 

 

10200SB2066sam001- 71 -LRB102 16579 HLH 24286 a

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

 

 

10200SB2066sam001- 72 -LRB102 16579 HLH 24286 a

1    Subject to payment of amounts into the Build Illinois Fund
2and the McCormick Place Expansion Project Fund pursuant to the
3preceding paragraphs or in any amendments thereto hereafter
4enacted, beginning July 1, 1993 and ending on September 30,
52013, the Department shall each month pay into the Illinois
6Tax Increment Fund 0.27% of 80% of the net revenue realized for
7the preceding month from the 6.25% general rate on the selling
8price of tangible personal property.
9    Subject to payment of amounts into the Build Illinois Fund
10and the McCormick Place Expansion Project Fund pursuant to the
11preceding paragraphs or in any amendments thereto hereafter
12enacted, beginning with the receipt of the first report of
13taxes paid by an eligible business and continuing for a
1425-year period, the Department shall each month pay into the
15Energy Infrastructure Fund 80% of the net revenue realized
16from the 6.25% general rate on the selling price of
17Illinois-mined coal that was sold to an eligible business. For
18purposes of this paragraph, the term "eligible business" means
19a new electric generating facility certified pursuant to
20Section 605-332 of the Department of Commerce and Economic
21Opportunity Law of the Civil Administrative Code of Illinois.
22    Subject to payment of amounts into the Build Illinois
23Fund, the McCormick Place Expansion Project Fund, the Illinois
24Tax Increment Fund, and the Energy Infrastructure Fund
25pursuant to the preceding paragraphs or in any amendments to
26this Section hereafter enacted, beginning on the first day of

 

 

10200SB2066sam001- 73 -LRB102 16579 HLH 24286 a

1the first calendar month to occur on or after August 26, 2014
2(the effective date of Public Act 98-1098), each month, from
3the collections made under Section 9 of the Use Tax Act,
4Section 9 of the Service Use Tax Act, Section 9 of the Service
5Occupation Tax Act, and Section 3 of the Retailers' Occupation
6Tax Act, the Department shall pay into the Tax Compliance and
7Administration Fund, to be used, subject to appropriation, to
8fund additional auditors and compliance personnel at the
9Department of Revenue, an amount equal to 1/12 of 5% of 80% of
10the cash receipts collected during the preceding fiscal year
11by the Audit Bureau of the Department under the Use Tax Act,
12the Service Use Tax Act, the Service Occupation Tax Act, the
13Retailers' Occupation Tax Act, and associated local occupation
14and use taxes administered by the Department.
15    Subject to payments of amounts into the Build Illinois
16Fund, the McCormick Place Expansion Project Fund, the Illinois
17Tax Increment Fund, the Energy Infrastructure Fund, and the
18Tax Compliance and Administration Fund as provided in this
19Section, beginning on July 1, 2018 the Department shall pay
20each month into the Downstate Public Transportation Fund the
21moneys required to be so paid under Section 2-3 of the
22Downstate Public Transportation Act.
23    Subject to successful execution and delivery of a
24public-private agreement between the public agency and private
25entity and completion of the civic build, beginning on July 1,
262023, of the remainder of the moneys received by the

 

 

10200SB2066sam001- 74 -LRB102 16579 HLH 24286 a

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

 

 

10200SB2066sam001- 75 -LRB102 16579 HLH 24286 a

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

 

 

10200SB2066sam001- 76 -LRB102 16579 HLH 24286 a

1Infrastructure Fund, and the Tax Compliance and Administration
2Fund as provided in this Section, the Department shall pay
3each month into the Road Fund the amount estimated to
4represent 32% of the net revenue realized from the taxes
5imposed on motor fuel and gasohol. Beginning July 1, 2023 and
6until July 1, 2024, subject to the payment of amounts into the
7County and Mass Transit District Fund, the Local Government
8Tax Fund, the Build Illinois Fund, the McCormick Place
9Expansion Project Fund, the Illinois Tax Increment Fund, the
10Energy Infrastructure Fund, and the Tax Compliance and
11Administration Fund as provided in this Section, the
12Department shall pay each month into the Road Fund the amount
13estimated to represent 48% of the net revenue realized from
14the taxes imposed on motor fuel and gasohol. Beginning July 1,
152024 and until July 1, 2025, subject to the payment of amounts
16into the County and Mass Transit District Fund, the Local
17Government Tax Fund, the Build Illinois Fund, the McCormick
18Place Expansion Project Fund, the Illinois Tax Increment Fund,
19the Energy Infrastructure Fund, and the Tax Compliance and
20Administration Fund as provided in this Section, the
21Department shall pay each month into the Road Fund the amount
22estimated to represent 64% of the net revenue realized from
23the taxes imposed on motor fuel and gasohol. Beginning on July
241, 2025, subject to the payment of amounts into the County and
25Mass Transit District Fund, the Local Government Tax Fund, the
26Build Illinois Fund, the McCormick Place Expansion Project

 

 

10200SB2066sam001- 77 -LRB102 16579 HLH 24286 a

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

 

 

10200SB2066sam001- 78 -LRB102 16579 HLH 24286 a

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

 

 

10200SB2066sam001- 79 -LRB102 16579 HLH 24286 a

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

 

 

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

 

 

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1the amount of such sales to the Department and to make a daily
2payment of the full amount of tax due. The Department shall
3impose this requirement when it finds that there is a
4significant risk of loss of revenue to the State at such an
5exhibition or event. Such a finding shall be based on evidence
6that a substantial number of concessionaires or other sellers
7who are not residents of Illinois will be engaging in the
8business of selling tangible personal property at retail at
9the exhibition or event, or other evidence of a significant
10risk of loss of revenue to the State. The Department shall
11notify concessionaires and other sellers affected by the
12imposition of this requirement. In the absence of notification
13by the Department, the concessionaires and other sellers shall
14file their returns as otherwise required in this Section.
15(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
16100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
1715, Section 15-25, eff. 6-5-19; 101-10, Article 25, Section
1825-120, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
196-28-19; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
 
20    Section 10. The Leveling the Playing Field for Illinois
21Retail Act is amended by changing Sections 5-5 and 5-25 as
22follows:
 
23    (35 ILCS 185/5-5)
24    Sec. 5-5. Findings. The General Assembly finds that

 

 

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1certified service providers and certified automated systems
2simplify use and occupation tax compliance for remote
3retailers, which fosters higher levels of accurate tax
4collection and remittance and generates administrative savings
5and new marginal tax revenue for both State and local taxing
6jurisdictions. By making the services of certified service
7providers and certified automated systems available to remote
8retailers without charge, other than their retailer customer's
9retail discount, as provided in this Act, the State will
10substantially eliminate the burden on those remote retailers
11to collect and remit both State and local taxing jurisdiction
12use and occupation taxes. While providing a means for remote
13retailers to collect and remit tax on an even basis with
14Illinois retailers, this Act also protects existing local tax
15revenue streams by retaining origin sourcing for all
16transactions by retailers maintaining a physical presence in
17Illinois.
18(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
 
19    (35 ILCS 185/5-25)
20    Sec. 5-25. Certification.
21    (a) The Department shall, no later than July 1, 2020:
22        (1) establish uniform minimum standards that companies
23    wishing to be designated as a certified service provider
24    in this State must meet;
25        (2) establish uniform minimum standards that certified

 

 

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1    automated systems must meet;
2        (3) establish a certification process to review the
3    systems of companies wishing to be designated as a
4    certified service provider in this State or of companies
5    wishing to use a certified automated process; this
6    certification process shall provide that companies that
7    meet all required standards and whose systems have been
8    tested and approved by the Department for properly
9    determining the taxability of items to be sold, the
10    correct tax rate to apply to a transaction, and the
11    appropriate jurisdictions to which the tax shall be
12    remitted, shall be certified;
13        (4) enter into a contractual relationship with each
14    company that qualifies as a certified service provider or
15    that will be using a certified automated system; those
16    contracts shall, at a minimum, provide:
17            (A) that the certified service provider shall be
18        held liable for the tax imposed under this Act and the
19        Use Tax Act and all applicable local occupation taxes
20        administered by the Department if the certified
21        service provider fails to correctly remit the tax
22        after having been provided with the tax and
23        information by a remote retailer to correctly remit
24        the taxes imposed under this Act and the Use Tax Act
25        and all applicable local occupation taxes administered
26        by the Department; if the certified service provider

 

 

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1        demonstrates to the satisfaction of the Department
2        that its failure to correctly remit tax on a retail
3        sale resulted from the certified service provider's
4        good faith reliance on incorrect or insufficient
5        information provided by the remote retailer, the
6        certified service provider shall be relieved of
7        liability for the tax on that retail sale; in that
8        case, the remote retailer is liable for any resulting
9        tax due;
10            (B) the responsibilities of the certified service
11        provider and the remote retailers that contract with
12        the certified service provider or the user of a
13        certified automated system related to record keeping
14        and auditing consistent with requirements imposed
15        under the Retailers' Occupation Tax Act and the Use
16        Tax Act;
17            (C) for the protection and confidentiality of tax
18        information consistent with requirements imposed under
19        the Retailers' Occupation Tax Act and the Use Tax Act;
20            (D) that a certified service provider may claim
21        the discount provided for in Section 3 of the
22        Retailers' Occupation Tax Act for the tax dollars it
23        collects and timely remits on returns that are timely
24        filed with the Department on behalf of remote
25        retailers; remote retailers using a certified service
26        provider may not claim the discount allowed in Section

 

 

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1        3 of the Retailers' Occupation Tax Act with respect to
2        those collections compensation equal to 1.75% of the
3        tax dollars collected and remitted to the State by a
4        certified service provider on a timely basis, along
5        with a return that has been timely filed, on behalf of
6        remote retailers; remote retailers using a certified
7        service provider may not claim the vendor's discount
8        allowed under the Retailers' Occupation Tax Act or the
9        Service Occupation Tax Act; and
10            (E) that the certified service provider shall file
11        a separate return for each remote retailer with which
12        it has a Tax Remittance Agreement.
13    The provisions of this Section shall supersede the
14provisions of the Illinois Procurement Code.
15    (b) The Department may act jointly with other states to
16establish the minimum standards and process for certification
17required by paragraphs (1), (2), and (3) of subsection (a).
18    (c) When the systems of a certified service provider or
19certified automated systems are updated or upgraded, they must
20be recertified by the Department. Notification of changes
21shall be provided to the Department prior to implementation.
22Upon receipt of such notification, the Department shall review
23and test the changes to assess whether the updated system of
24the certified service provider or the updated certified
25automated system can properly determine the taxability of
26items to be sold, the correct tax rate to apply to a

 

 

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1transaction, and the appropriate jurisdictions to which the
2tax shall be remitted. The Department shall recertify updated
3systems that meet these requirements. The certified service
4provider or retailer using a certified automated system shall
5be liable for any tax resulting from errors caused by use of an
6updated or upgraded system prior to recertification by the
7Department. In addition to these procedures, the Department
8may periodically review the system of a certified service
9provider or the certified automated system used by a retailer
10to ensure that the system can properly determine the
11taxability of items to be sold, the correct tax rate to apply
12to a transaction, and the appropriate jurisdictions to which
13the tax shall be remitted.
14(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.".