Illinois General Assembly - Illinois Compiled Statutes

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35 ILCS 105/3

(35 ILCS 105/3) (from Ch. 120, par. 439.3)

(Text of Section before amendment by P.A. 103-592)

Sec. 3. Tax imposed.

A tax is imposed upon the privilege of using in
this State tangible personal property purchased at retail from a
retailer, including computer software, and
including photographs, negatives, and positives that are the product of
photoprocessing, but not including products of photoprocessing produced for
use in motion pictures for commercial exhibition.
Beginning January 1, 2001, prepaid telephone calling arrangements shall be
considered tangible personal property subject to the tax imposed under this Act
regardless of the form in which those arrangements may be embodied,
transmitted, or fixed by any method now known or hereafter developed. Purchases of (1) electricity delivered to customers by wire;  (2) natural or artificial gas that is delivered to customers through pipes, pipelines, or mains;  and (3) water that is delivered to customers through pipes, pipelines, or mains are not subject to tax under this Act.  The provisions of this amendatory Act of the 98th General Assembly are declaratory of existing law as to the meaning and scope of this Act.

(Source: P.A. 98-583, eff. 1-1-14.)

(Text of Section after amendment by P.A. 103-592)
Sec. 3. Tax imposed.

A tax is imposed upon the privilege of using in this State tangible personal property purchased, which, on and after January 1, 2025, includes leased, at retail from a retailer, including computer software, and including photographs, negatives, and positives that are the product of photoprocessing, but not including products of photoprocessing produced for use in motion pictures for commercial exhibition. Beginning January 1, 2001, prepaid telephone calling arrangements shall be considered tangible personal property subject to the tax imposed under this Act regardless of the form in which those arrangements may be embodied, transmitted, or fixed by any method now known or hereafter developed. Purchases of (1) electricity delivered to customers by wire; (2) natural or artificial gas that is delivered to customers through pipes, pipelines, or mains; and (3) water that is delivered to customers through pipes, pipelines, or mains are not subject to tax under this Act. The provisions of this amendatory Act of the 98th General Assembly are declaratory of existing law as to the meaning and scope of this Act.

The imposition of the tax under this Act on the privilege of using tangible personal property leased at retail applies to leases of tangible personal property in effect, entered into, or renewed on or after January 1, 2025. In the case of leases, except as otherwise provided in this Act, the lessor, in collecting the tax, may collect for each tax return period, only the tax applicable to that part of the selling price actually received during such tax return period.

The inclusion of leases in the tax imposed under this Act by this amendatory Act of the 103rd General Assembly does not, however, extend to motor vehicles, watercraft, aircraft, and semitrailers, as defined in Section 1-187 of the Illinois Vehicle Code, that are required to be registered with an agency of this State. The taxation of these items shall continue in effect as prior to the effective date of the changes made to this Section by this amendatory Act of the 103rd General Assembly (i.e. dealers owe retailers' occupation tax, lessors owe use tax, and lessees are not subject to retailers' occupation or use tax).

(Source: P.A. 103-592, eff. 1-1-25.)