Public Act 103-0592
 
HB4951 EnrolledLRB103 38094 HLH 68226 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly:
 
ARTICLE 5.

 
    Section 5-5. The Department of Revenue Law of the Civil 
Administrative Code of Illinois is amended by adding Section 
2505-815 as follows:
 
    (20 ILCS 2505/2505-815 new)
    Sec. 2505-815. County Official Compensation Task Force.
    (a) The County Official Compensation Task Force is created 
to review the compensation of county-level officials as 
provided for in various State statutes and to make 
recommendations to the General Assembly on any appropriate 
changes to those statutes, including implementation dates.
    (b) The members of the Task Force shall be as follows:
        (1) the Director of Revenue or the Director's 
    designee, who shall serve as the chair of the Task Force;
        (2) two representatives from a statewide organization 
    that represents chief county assessment officers, with one 
    representative from a county with a 2020 population of 
    fewer than 25,000 persons and one representative from a 
    county with a 2020 population of 25,000 or more, to be 
    appointed by the Director of Revenue;
        (3) two representatives from a statewide organization 
    that represents county auditors, with one representative 
    from a county with a 2020 population of fewer than 25,000 
    persons and one representative from a county with a 2020 
    population of 25,000 or more, to be appointed by the 
    Director of Revenue;
        (4) two representatives from a statewide organization 
    that represents county clerks and recorders, with one 
    representative from a county with a 2020 population of 
    fewer than 25,000 persons and one representative from a 
    county with a 2020 population of 25,000 or more, to be 
    appointed by the Director of Revenue;
        (5) two representatives from a statewide organization 
    that represents circuit clerks, with one representative 
    from a county with a 2020 population of fewer than 25,000 
    persons and one representative from a county with a 2020 
    population of 25,000 or more, to be appointed by the Chief 
    Justice of the Supreme Court;
        (6) two representatives from a statewide organization 
    that represents county treasurers, with one representative 
    from a county with a 2020 population of fewer than 25,000 
    persons and one representative from a county with a 2020 
    population of 25,000 or more, to be appointed by the 
    Director of Revenue;
        (7) four representatives from a statewide organization 
    that represents county board members, with 2 
    representatives from counties with a 2020 population of 
    fewer than 25,000 persons and 2 representatives from 
    counties with a 2020 population of 25,000 or more, to be 
    appointed by the Governor; and
        (8) four members from the General Assembly, with one 
    member appointed by the President of the Senate, one 
    member appointed by the Senate Minority Leader, one member 
    appointed by the Speaker of the House of Representatives, 
    and one member appointed by the House Minority Leader.
    (c) The Department of Revenue shall provide administrative 
and other support to the Task Force.
    (d) The Task Force's review shall include, but is not 
limited to, the following subjects:
        (1) a review and comparison of current statutory 
    provisions and requirements for compensation of 
    county-level officials;
        (2) the proportion of salary and related costs borne 
    by State government compared to local government;
        (3) job duties, education requirements, and other 
    requirements of those serving as county-level officials; 
    and
        (4) current compensation levels for county-level 
    officials as compared to comparable positions in 
    non-governmental positions and comparable positions in 
    other levels of government.
    (e) On or before September 1, 2024, the Task Force members 
shall be appointed. On or before February 1, 2025, the Task 
Force shall prepare a status report that summarizes its work. 
The Task Force shall also prepare a comprehensive report 
either (i) on or before May 1, 2025 or (ii) on or before 
December 31, 2025, if all appointments to the Task Force are 
not made by September 1, 2024. The comprehensive report shall 
summarize the Task Force's findings and make recommendations 
on the implementation of changes to the compensation of chief 
county assessment officers, county auditors, county clerks and 
recorders, county coroners, county treasurers, and circuit 
clerks that will ensure compensation is competitive for 
recruitment and retention and will ensure parity exists among 
compensation levels within each profession, each county, and 
across the State.
    (f) The Task Force is dissolved on January 1, 2026.
 
ARTICLE 10.

 
    Section 10-1. Short title. This Act may be cited as the 
Workforce Development through Charitable Loan Repayment Act. 
References in this Article to "this Act" mean this Article.
 
    Section 10-5. Purpose. The purpose of this Act is to 
create a private sector incentive for qualified workers to 
work and live in eligible areas while also reducing the 
student debt burden of those workers.
 
    Section 10-10. Definitions. As used in this Act:
    "Commission" means the Illinois Student Assistance 
Commission.
    "Full-time employee" means an individual who is employed 
for consideration for at least 35 hours each week.
    "Program" means the Workforce Development Through 
Charitable Loan Repayment Program established under this Act.
    "Qualified community foundation" means a community 
foundation or similar publicly supported organization 
described in Section 170(b)(1)(A)(vi) of the Internal Revenue 
Code of 1986 that (i) is organized or operating in this State, 
(ii) substantially complies, as determined by the Commission, 
with the national standards for United States community 
foundations established by the Community Foundations National 
Standards or a successor entity, and (iii) is approved by the 
Commission for participation in the Program as provided in 
Section 10-17.
    "Qualified worker" means an individual who meets all of 
the following:
        (1) the individual is a full-time employee of a 
    business that meets one or more of the following: 
            (A) the business is a qualified new business 
        venture that is registered with the Department of 
        Commerce and Economic Opportunity under Section 220 of 
        the Illinois Income Tax Act; 
            (B) the business is primarily engaged in a 
        targeted growth industry;
            (C) the business is a minority-owned business, a 
        women-owned business, or a business owned by a person 
        with a disability, as those terms are defined in the 
        Business Enterprise for Minorities, Women, and Persons 
        with Disabilities Act; or
            (D) the business is a not-for-profit corporation, 
        as defined in the General Not For Profit Corporation 
        Act of 1986;
        (2) the individual is employed by the business 
    described in paragraph (1) at a job site that is located in 
    an Enterprise Zone, an Opportunity Zone, an underserved 
    area, or an area that has a bachelor's degree attainment 
    rate for the population that is below the State or 
    national average for the population, as determined by the 
    United States Census Bureau; and
        (3) the individual (i) received an associate degree or 
    higher and has an outstanding balance due on a qualified 
    education loan, as defined in Section 221 of the Internal 
    Revenue Code, or (ii) accrued educational debt while 
    pursuing skilled trades and related schooling.
    "Student loan repayment assistance" means grants or 
post-graduation scholarships made by a community foundation 
directly to a student loan servicer on behalf of a qualified 
worker. 
    "Targeted growth industry" means one or more of the 
following:
        (1) advanced manufacturing;
        (2) agribusiness and food processing;
        (3) transportation distribution and logistics;
        (4) life sciences and biotechnology;
        (5) business and professional services; or
        (6) energy.
    "Underserved area" has the meaning given to that term in 
Section 5-5 of the Economic Development for a Growing Economy 
Tax Credit Act.
 
    Section 10-15. Establishment of the Program; 
advertisement. The Workforce Development through Charitable 
Loan Repayment Program is hereby created for the purpose of 
facilitating student loan repayment assistance for qualified 
workers. The Program shall be administered by qualified 
community foundations with the assistance of the Commission. 
The Commission shall advertise the program on its website.
 
    Section 10-17. Approval to participate in the Program. 
    (a) A qualified community foundation shall apply to the 
Commission, in the form and manner prescribed by the 
Commission, for eligibility to participate in the Program 
under this Act. Each application shall include:
        (1) documentary evidence that the qualified community 
    foundation meets the qualifications under Section 
    170(b)(1)(A)(vi) of the Internal Revenue Code and 
    substantially complies with the standards established by 
    Community Foundations National Standards;
        (2) a list of the names and addresses of all members of 
    the governing board of the qualified community foundation; 
    and 
        (3) a copy of the most recent financial audit of the 
    qualified community foundation's accounts and records 
    conducted by an independent certified public accountant in 
    accordance with auditing standards generally accepted in 
    the United States, government auditing standards, and 
    rules adopted by the Commission. 
    (b) The Commission shall review and either approve or deny 
each application for participation. Applicants shall be 
notified of the status of their application within a 
reasonable amount of time after the completed application is 
received.
    (c) The Commission may provide, by rule, that qualified 
community foundations that are eligible to participate in tax 
incentive programs administered by other State agencies are 
automatically eligible to participate in the Program under 
this Section.
 
    Section 10-20. Applications. Each qualified community 
foundation shall establish an application process for 
qualified workers to receive student loan repayment assistance 
from the qualified community foundation in accordance with 
this Act and rules adopted for the implementation of this Act 
by the Commission. If necessary due to limited funds, the 
qualified community foundation shall give priority to 
applicants with a higher student debt-to-income ratio when 
awarding student loan repayment assistance under the Program.
 
    Section 10-25. Eligibility; work requirement. Each 
individual qualified community foundation shall certify the 
eligibility of qualified workers to receive student loan 
repayment assistance and establish work requirements in 
accordance with this Act, rules adopted by the Commission, and 
the requirements of the individual qualified community 
foundation.
 
    Section 10-30. Administration; rules. Qualified community 
foundations shall administer the Program under this Act and 
shall issue to qualified workers any forms required by the 
Commission or the Department of Revenue. The Commission shall 
adopt rules for the Program's effective implementation, except 
that rules regarding the documentation necessary to deduct 
student loan repayment assistance from the worker's income 
under subparagraph (LL) of subsection (a) of Section 203 of 
the Illinois Income Tax Act may be adopted by the Department of 
Revenue in consultation with the Commission. Individual 
qualified community foundations may impose requirements for 
participation in the Program, which shall not be inconsistent 
with this Act or the rules adopted by the Commission or the 
Department of Revenue in connection with this Act.
 
    Section 10-35. Reporting. Each qualified community 
foundation shall submit an annual report to the Commission 
summarizing its loan repayment activity under the Program. 
Reports under this Section shall be submitted in the form and 
manner prescribed by the Commission.
 
    Section 10-900. The Illinois Income Tax Act is amended by 
changing Section 203 as follows:
 
    (35 ILCS 5/203)
    Sec. 203. Base income defined. 
    (a) Individuals.
        (1) In general. In the case of an individual, base 
    income means an amount equal to the taxpayer's adjusted 
    gross income for the taxable year as modified by paragraph 
    (2).
        (2) Modifications. The adjusted gross income referred 
    to in paragraph (1) shall be modified by adding thereto 
    the sum of the following amounts:
            (A) An amount equal to all amounts paid or accrued 
        to the taxpayer as interest or dividends during the 
        taxable year to the extent excluded from gross income 
        in the computation of adjusted gross income, except 
        stock dividends of qualified public utilities 
        described in Section 305(e) of the Internal Revenue 
        Code;
            (B) An amount equal to the amount of tax imposed by 
        this Act to the extent deducted from gross income in 
        the computation of adjusted gross income for the 
        taxable year;
            (C) An amount equal to the amount received during 
        the taxable year as a recovery or refund of real 
        property taxes paid with respect to the taxpayer's 
        principal residence under the Revenue Act of 1939 and 
        for which a deduction was previously taken under 
        subparagraph (L) of this paragraph (2) prior to July 
        1, 1991, the retrospective application date of Article 
        4 of Public Act 87-17. In the case of multi-unit or 
        multi-use structures and farm dwellings, the taxes on 
        the taxpayer's principal residence shall be that 
        portion of the total taxes for the entire property 
        which is attributable to such principal residence;
            (D) An amount equal to the amount of the capital 
        gain deduction allowable under the Internal Revenue 
        Code, to the extent deducted from gross income in the 
        computation of adjusted gross income;
            (D-5) An amount, to the extent not included in 
        adjusted gross income, equal to the amount of money 
        withdrawn by the taxpayer in the taxable year from a 
        medical care savings account and the interest earned 
        on the account in the taxable year of a withdrawal 
        pursuant to subsection (b) of Section 20 of the 
        Medical Care Savings Account Act or subsection (b) of 
        Section 20 of the Medical Care Savings Account Act of 
        2000;
            (D-10) For taxable years ending after December 31, 
        1997, an amount equal to any eligible remediation 
        costs that the individual deducted in computing 
        adjusted gross income and for which the individual 
        claims a credit under subsection (l) of Section 201;
            (D-15) For taxable years 2001 and thereafter, an 
        amount equal to the bonus depreciation deduction taken 
        on the taxpayer's federal income tax return for the 
        taxable year under subsection (k) of Section 168 of 
        the Internal Revenue Code;
            (D-16) If the taxpayer sells, transfers, abandons, 
        or otherwise disposes of property for which the 
        taxpayer was required in any taxable year to make an 
        addition modification under subparagraph (D-15), then 
        an amount equal to the aggregate amount of the 
        deductions taken in all taxable years under 
        subparagraph (Z) with respect to that property.
            If the taxpayer continues to own property through 
        the last day of the last tax year for which a 
        subtraction is allowed with respect to that property 
        under subparagraph (Z) and for which the taxpayer was 
        allowed in any taxable year to make a subtraction 
        modification under subparagraph (Z), then an amount 
        equal to that subtraction modification. 
            The taxpayer is required to make the addition 
        modification under this subparagraph only once with 
        respect to any one piece of property;
            (D-17) An amount equal to the amount otherwise 
        allowed as a deduction in computing base income for 
        interest paid, accrued, or incurred, directly or 
        indirectly, (i) for taxable years ending on or after 
        December 31, 2004, to a foreign person who would be a 
        member of the same unitary business group but for the 
        fact that foreign person's business activity outside 
        the United States is 80% or more of the foreign 
        person's total business activity and (ii) for taxable 
        years ending on or after December 31, 2008, to a person 
        who would be a member of the same unitary business 
        group but for the fact that the person is prohibited 
        under Section 1501(a)(27) from being included in the 
        unitary business group because he or she is ordinarily 
        required to apportion business income under different 
        subsections of Section 304. The addition modification 
        required by this subparagraph shall be reduced to the 
        extent that dividends were included in base income of 
        the unitary group for the same taxable year and 
        received by the taxpayer or by a member of the 
        taxpayer's unitary business group (including amounts 
        included in gross income under Sections 951 through 
        964 of the Internal Revenue Code and amounts included 
        in gross income under Section 78 of the Internal 
        Revenue Code) with respect to the stock of the same 
        person to whom the interest was paid, accrued, or 
        incurred.
            This paragraph shall not apply to the following: 
                (i) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person who 
            is subject in a foreign country or state, other 
            than a state which requires mandatory unitary 
            reporting, to a tax on or measured by net income 
            with respect to such interest; or
                (ii) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person if 
            the taxpayer can establish, based on a 
            preponderance of the evidence, both of the 
            following:
                    (a) the person, during the same taxable 
                year, paid, accrued, or incurred, the interest 
                to a person that is not a related member, and
                    (b) the transaction giving rise to the 
                interest expense between the taxpayer and the 
                person did not have as a principal purpose the 
                avoidance of Illinois income tax, and is paid 
                pursuant to a contract or agreement that 
                reflects an arm's-length interest rate and 
                terms; or 
                (iii) the taxpayer can establish, based on 
            clear and convincing evidence, that the interest 
            paid, accrued, or incurred relates to a contract 
            or agreement entered into at arm's-length rates 
            and terms and the principal purpose for the 
            payment is not federal or Illinois tax avoidance; 
            or 
                (iv) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person if 
            the taxpayer establishes by clear and convincing 
            evidence that the adjustments are unreasonable; or 
            if the taxpayer and the Director agree in writing 
            to the application or use of an alternative method 
            of apportionment under Section 304(f). 
                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act 
            for any tax year beginning after the effective 
            date of this amendment provided such adjustment is 
            made pursuant to regulation adopted by the 
            Department and such regulations provide methods 
            and standards by which the Department will utilize 
            its authority under Section 404 of this Act; 
            (D-18) An amount equal to the amount of intangible 
        expenses and costs otherwise allowed as a deduction in 
        computing base income, and that were paid, accrued, or 
        incurred, directly or indirectly, (i) for taxable 
        years ending on or after December 31, 2004, to a 
        foreign person who would be a member of the same 
        unitary business group but for the fact that the 
        foreign person's business activity outside the United 
        States is 80% or more of that person's total business 
        activity and (ii) for taxable years ending on or after 
        December 31, 2008, to a person who would be a member of 
        the same unitary business group but for the fact that 
        the person is prohibited under Section 1501(a)(27) 
        from being included in the unitary business group 
        because he or she is ordinarily required to apportion 
        business income under different subsections of Section 
        304. The addition modification required by this 
        subparagraph shall be reduced to the extent that 
        dividends were included in base income of the unitary 
        group for the same taxable year and received by the 
        taxpayer or by a member of the taxpayer's unitary 
        business group (including amounts included in gross 
        income under Sections 951 through 964 of the Internal 
        Revenue Code and amounts included in gross income 
        under Section 78 of the Internal Revenue Code) with 
        respect to the stock of the same person to whom the 
        intangible expenses and costs were directly or 
        indirectly paid, incurred, or accrued. The preceding 
        sentence does not apply to the extent that the same 
        dividends caused a reduction to the addition 
        modification required under Section 203(a)(2)(D-17) of 
        this Act. As used in this subparagraph, the term 
        "intangible expenses and costs" includes (1) expenses, 
        losses, and costs for, or related to, the direct or 
        indirect acquisition, use, maintenance or management, 
        ownership, sale, exchange, or any other disposition of 
        intangible property; (2) losses incurred, directly or 
        indirectly, from factoring transactions or discounting 
        transactions; (3) royalty, patent, technical, and 
        copyright fees; (4) licensing fees; and (5) other 
        similar expenses and costs. For purposes of this 
        subparagraph, "intangible property" includes patents, 
        patent applications, trade names, trademarks, service 
        marks, copyrights, mask works, trade secrets, and 
        similar types of intangible assets.
            This paragraph shall not apply to the following:
                (i) any item of intangible expenses or costs 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a person who 
            is subject in a foreign country or state, other 
            than a state which requires mandatory unitary 
            reporting, to a tax on or measured by net income 
            with respect to such item; or
                (ii) any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, if the taxpayer can establish, based 
            on a preponderance of the evidence, both of the 
            following:
                    (a) the person during the same taxable 
                year paid, accrued, or incurred, the 
                intangible expense or cost to a person that is 
                not a related member, and
                    (b) the transaction giving rise to the 
                intangible expense or cost between the 
                taxpayer and the person did not have as a 
                principal purpose the avoidance of Illinois 
                income tax, and is paid pursuant to a contract 
                or agreement that reflects arm's-length terms; 
                or
                (iii) any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a person if 
            the taxpayer establishes by clear and convincing 
            evidence, that the adjustments are unreasonable; 
            or if the taxpayer and the Director agree in 
            writing to the application or use of an 
            alternative method of apportionment under Section 
            304(f); 
                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act 
            for any tax year beginning after the effective 
            date of this amendment provided such adjustment is 
            made pursuant to regulation adopted by the 
            Department and such regulations provide methods 
            and standards by which the Department will utilize 
            its authority under Section 404 of this Act; 
            (D-19) For taxable years ending on or after 
        December 31, 2008, an amount equal to the amount of 
        insurance premium expenses and costs otherwise allowed 
        as a deduction in computing base income, and that were 
        paid, accrued, or incurred, directly or indirectly, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304. The 
        addition modification required by this subparagraph 
        shall be reduced to the extent that dividends were 
        included in base income of the unitary group for the 
        same taxable year and received by the taxpayer or by a 
        member of the taxpayer's unitary business group 
        (including amounts included in gross income under 
        Sections 951 through 964 of the Internal Revenue Code 
        and amounts included in gross income under Section 78 
        of the Internal Revenue Code) with respect to the 
        stock of the same person to whom the premiums and costs 
        were directly or indirectly paid, incurred, or 
        accrued. The preceding sentence does not apply to the 
        extent that the same dividends caused a reduction to 
        the addition modification required under Section 
        203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this 
        Act; 
            (D-20) For taxable years beginning on or after 
        January 1, 2002 and ending on or before December 31, 
        2006, in the case of a distribution from a qualified 
        tuition program under Section 529 of the Internal 
        Revenue Code, other than (i) a distribution from a 
        College Savings Pool created under Section 16.5 of the 
        State Treasurer Act or (ii) a distribution from the 
        Illinois Prepaid Tuition Trust Fund, an amount equal 
        to the amount excluded from gross income under Section 
        529(c)(3)(B). For taxable years beginning on or after 
        January 1, 2007, in the case of a distribution from a 
        qualified tuition program under Section 529 of the 
        Internal Revenue Code, other than (i) a distribution 
        from a College Savings Pool created under Section 16.5 
        of the State Treasurer Act, (ii) a distribution from 
        the Illinois Prepaid Tuition Trust Fund, or (iii) a 
        distribution from a qualified tuition program under 
        Section 529 of the Internal Revenue Code that (I) 
        adopts and determines that its offering materials 
        comply with the College Savings Plans Network's 
        disclosure principles and (II) has made reasonable 
        efforts to inform in-state residents of the existence 
        of in-state qualified tuition programs by informing 
        Illinois residents directly and, where applicable, to 
        inform financial intermediaries distributing the 
        program to inform in-state residents of the existence 
        of in-state qualified tuition programs at least 
        annually, an amount equal to the amount excluded from 
        gross income under Section 529(c)(3)(B).
            For the purposes of this subparagraph (D-20), a 
        qualified tuition program has made reasonable efforts 
        if it makes disclosures (which may use the term 
        "in-state program" or "in-state plan" and need not 
        specifically refer to Illinois or its qualified 
        programs by name) (i) directly to prospective 
        participants in its offering materials or makes a 
        public disclosure, such as a website posting; and (ii) 
        where applicable, to intermediaries selling the 
        out-of-state program in the same manner that the 
        out-of-state program distributes its offering 
        materials;
            (D-20.5) For taxable years beginning on or after 
        January 1, 2018, in the case of a distribution from a 
        qualified ABLE program under Section 529A of the 
        Internal Revenue Code, other than a distribution from 
        a qualified ABLE program created under Section 16.6 of 
        the State Treasurer Act, an amount equal to the amount 
        excluded from gross income under Section 529A(c)(1)(B) 
        of the Internal Revenue Code; 
            (D-21) For taxable years beginning on or after 
        January 1, 2007, in the case of transfer of moneys from 
        a qualified tuition program under Section 529 of the 
        Internal Revenue Code that is administered by the 
        State to an out-of-state program, an amount equal to 
        the amount of moneys previously deducted from base 
        income under subsection (a)(2)(Y) of this Section;
            (D-21.5) For taxable years beginning on or after 
        January 1, 2018, in the case of the transfer of moneys 
        from a qualified tuition program under Section 529 or 
        a qualified ABLE program under Section 529A of the 
        Internal Revenue Code that is administered by this 
        State to an ABLE account established under an 
        out-of-state ABLE account program, an amount equal to 
        the contribution component of the transferred amount 
        that was previously deducted from base income under 
        subsection (a)(2)(Y) or subsection (a)(2)(HH) of this 
        Section; 
            (D-22) For taxable years beginning on or after 
        January 1, 2009, and prior to January 1, 2018, in the 
        case of a nonqualified withdrawal or refund of moneys 
        from a qualified tuition program under Section 529 of 
        the Internal Revenue Code administered by the State 
        that is not used for qualified expenses at an eligible 
        education institution, an amount equal to the 
        contribution component of the nonqualified withdrawal 
        or refund that was previously deducted from base 
        income under subsection (a)(2)(y) of this Section, 
        provided that the withdrawal or refund did not result 
        from the beneficiary's death or disability. For 
        taxable years beginning on or after January 1, 2018: 
        (1) in the case of a nonqualified withdrawal or 
        refund, as defined under Section 16.5 of the State 
        Treasurer Act, of moneys from a qualified tuition 
        program under Section 529 of the Internal Revenue Code 
        administered by the State, an amount equal to the 
        contribution component of the nonqualified withdrawal 
        or refund that was previously deducted from base 
        income under subsection (a)(2)(Y) of this Section, and 
        (2) in the case of a nonqualified withdrawal or refund 
        from a qualified ABLE program under Section 529A of 
        the Internal Revenue Code administered by the State 
        that is not used for qualified disability expenses, an 
        amount equal to the contribution component of the 
        nonqualified withdrawal or refund that was previously 
        deducted from base income under subsection (a)(2)(HH) 
        of this Section;
            (D-23) An amount equal to the credit allowable to 
        the taxpayer under Section 218(a) of this Act, 
        determined without regard to Section 218(c) of this 
        Act;
            (D-24) For taxable years ending on or after 
        December 31, 2017, an amount equal to the deduction 
        allowed under Section 199 of the Internal Revenue Code 
        for the taxable year; 
            (D-25) In the case of a resident, an amount equal 
        to the amount of tax for which a credit is allowed 
        pursuant to Section 201(p)(7) of this Act; 
    and by deducting from the total so obtained the sum of the 
    following amounts:
            (E) For taxable years ending before December 31, 
        2001, any amount included in such total in respect of 
        any compensation (including but not limited to any 
        compensation paid or accrued to a serviceman while a 
        prisoner of war or missing in action) paid to a 
        resident by reason of being on active duty in the Armed 
        Forces of the United States and in respect of any 
        compensation paid or accrued to a resident who as a 
        governmental employee was a prisoner of war or missing 
        in action, and in respect of any compensation paid to a 
        resident in 1971 or thereafter for annual training 
        performed pursuant to Sections 502 and 503, Title 32, 
        United States Code as a member of the Illinois 
        National Guard or, beginning with taxable years ending 
        on or after December 31, 2007, the National Guard of 
        any other state. For taxable years ending on or after 
        December 31, 2001, any amount included in such total 
        in respect of any compensation (including but not 
        limited to any compensation paid or accrued to a 
        serviceman while a prisoner of war or missing in 
        action) paid to a resident by reason of being a member 
        of any component of the Armed Forces of the United 
        States and in respect of any compensation paid or 
        accrued to a resident who as a governmental employee 
        was a prisoner of war or missing in action, and in 
        respect of any compensation paid to a resident in 2001 
        or thereafter by reason of being a member of the 
        Illinois National Guard or, beginning with taxable 
        years ending on or after December 31, 2007, the 
        National Guard of any other state. The provisions of 
        this subparagraph (E) are exempt from the provisions 
        of Section 250;
            (F) An amount equal to all amounts included in 
        such total pursuant to the provisions of Sections 
        402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and 
        408 of the Internal Revenue Code, or included in such 
        total as distributions under the provisions of any 
        retirement or disability plan for employees of any 
        governmental agency or unit, or retirement payments to 
        retired partners, which payments are excluded in 
        computing net earnings from self employment by Section 
        1402 of the Internal Revenue Code and regulations 
        adopted pursuant thereto;
            (G) The valuation limitation amount;
            (H) An amount equal to the amount of any tax 
        imposed by this Act which was refunded to the taxpayer 
        and included in such total for the taxable year;
            (I) An amount equal to all amounts included in 
        such total pursuant to the provisions of Section 111 
        of the Internal Revenue Code as a recovery of items 
        previously deducted from adjusted gross income in the 
        computation of taxable income;
            (J) An amount equal to those dividends included in 
        such total which were paid by a corporation which 
        conducts business operations in a River Edge 
        Redevelopment Zone or zones created under the River 
        Edge Redevelopment Zone Act, and conducts 
        substantially all of its operations in a River Edge 
        Redevelopment Zone or zones. This subparagraph (J) is 
        exempt from the provisions of Section 250;
            (K) An amount equal to those dividends included in 
        such total that were paid by a corporation that 
        conducts business operations in a federally designated 
        Foreign Trade Zone or Sub-Zone and that is designated 
        a High Impact Business located in Illinois; provided 
        that dividends eligible for the deduction provided in 
        subparagraph (J) of paragraph (2) of this subsection 
        shall not be eligible for the deduction provided under 
        this subparagraph (K);
            (L) For taxable years ending after December 31, 
        1983, an amount equal to all social security benefits 
        and railroad retirement benefits included in such 
        total pursuant to Sections 72(r) and 86 of the 
        Internal Revenue Code;
            (M) With the exception of any amounts subtracted 
        under subparagraph (N), an amount equal to the sum of 
        all amounts disallowed as deductions by (i) Sections 
        171(a)(2) and 265(a)(2) of the Internal Revenue Code, 
        and all amounts of expenses allocable to interest and 
        disallowed as deductions by Section 265(a)(1) of the 
        Internal Revenue Code; and (ii) for taxable years 
        ending on or after August 13, 1999, Sections 
        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the 
        Internal Revenue Code, plus, for taxable years ending 
        on or after December 31, 2011, Section 45G(e)(3) of 
        the Internal Revenue Code and, for taxable years 
        ending on or after December 31, 2008, any amount 
        included in gross income under Section 87 of the 
        Internal Revenue Code; the provisions of this 
        subparagraph are exempt from the provisions of Section 
        250;
            (N) An amount equal to all amounts included in 
        such total which are exempt from taxation by this 
        State either by reason of its statutes or Constitution 
        or by reason of the Constitution, treaties or statutes 
        of the United States; provided that, in the case of any 
        statute of this State that exempts income derived from 
        bonds or other obligations from the tax imposed under 
        this Act, the amount exempted shall be the interest 
        net of bond premium amortization;
            (O) An amount equal to any contribution made to a 
        job training project established pursuant to the Tax 
        Increment Allocation Redevelopment Act;
            (P) An amount equal to the amount of the deduction 
        used to compute the federal income tax credit for 
        restoration of substantial amounts held under claim of 
        right for the taxable year pursuant to Section 1341 of 
        the Internal Revenue Code or of any itemized deduction 
        taken from adjusted gross income in the computation of 
        taxable income for restoration of substantial amounts 
        held under claim of right for the taxable year;
            (Q) An amount equal to any amounts included in 
        such total, received by the taxpayer as an 
        acceleration in the payment of life, endowment or 
        annuity benefits in advance of the time they would 
        otherwise be payable as an indemnity for a terminal 
        illness;
            (R) An amount equal to the amount of any federal or 
        State bonus paid to veterans of the Persian Gulf War;
            (S) An amount, to the extent included in adjusted 
        gross income, equal to the amount of a contribution 
        made in the taxable year on behalf of the taxpayer to a 
        medical care savings account established under the 
        Medical Care Savings Account Act or the Medical Care 
        Savings Account Act of 2000 to the extent the 
        contribution is accepted by the account administrator 
        as provided in that Act;
            (T) An amount, to the extent included in adjusted 
        gross income, equal to the amount of interest earned 
        in the taxable year on a medical care savings account 
        established under the Medical Care Savings Account Act 
        or the Medical Care Savings Account Act of 2000 on 
        behalf of the taxpayer, other than interest added 
        pursuant to item (D-5) of this paragraph (2);
            (U) For one taxable year beginning on or after 
        January 1, 1994, an amount equal to the total amount of 
        tax imposed and paid under subsections (a) and (b) of 
        Section 201 of this Act on grant amounts received by 
        the taxpayer under the Nursing Home Grant Assistance 
        Act during the taxpayer's taxable years 1992 and 1993;
            (V) Beginning with tax years ending on or after 
        December 31, 1995 and ending with tax years ending on 
        or before December 31, 2004, an amount equal to the 
        amount paid by a taxpayer who is a self-employed 
        taxpayer, a partner of a partnership, or a shareholder 
        in a Subchapter S corporation for health insurance or 
        long-term care insurance for that taxpayer or that 
        taxpayer's spouse or dependents, to the extent that 
        the amount paid for that health insurance or long-term 
        care insurance may be deducted under Section 213 of 
        the Internal Revenue Code, has not been deducted on 
        the federal income tax return of the taxpayer, and 
        does not exceed the taxable income attributable to 
        that taxpayer's income, self-employment income, or 
        Subchapter S corporation income; except that no 
        deduction shall be allowed under this item (V) if the 
        taxpayer is eligible to participate in any health 
        insurance or long-term care insurance plan of an 
        employer of the taxpayer or the taxpayer's spouse. The 
        amount of the health insurance and long-term care 
        insurance subtracted under this item (V) shall be 
        determined by multiplying total health insurance and 
        long-term care insurance premiums paid by the taxpayer 
        times a number that represents the fractional 
        percentage of eligible medical expenses under Section 
        213 of the Internal Revenue Code of 1986 not actually 
        deducted on the taxpayer's federal income tax return;
            (W) For taxable years beginning on or after 
        January 1, 1998, all amounts included in the 
        taxpayer's federal gross income in the taxable year 
        from amounts converted from a regular IRA to a Roth 
        IRA. This paragraph is exempt from the provisions of 
        Section 250;
            (X) For taxable year 1999 and thereafter, an 
        amount equal to the amount of any (i) distributions, 
        to the extent includible in gross income for federal 
        income tax purposes, made to the taxpayer because of 
        his or her status as a victim of persecution for racial 
        or religious reasons by Nazi Germany or any other Axis 
        regime or as an heir of the victim and (ii) items of 
        income, to the extent includible in gross income for 
        federal income tax purposes, attributable to, derived 
        from or in any way related to assets stolen from, 
        hidden from, or otherwise lost to a victim of 
        persecution for racial or religious reasons by Nazi 
        Germany or any other Axis regime immediately prior to, 
        during, and immediately after World War II, including, 
        but not limited to, interest on the proceeds 
        receivable as insurance under policies issued to a 
        victim of persecution for racial or religious reasons 
        by Nazi Germany or any other Axis regime by European 
        insurance companies immediately prior to and during 
        World War II; provided, however, this subtraction from 
        federal adjusted gross income does not apply to assets 
        acquired with such assets or with the proceeds from 
        the sale of such assets; provided, further, this 
        paragraph shall only apply to a taxpayer who was the 
        first recipient of such assets after their recovery 
        and who is a victim of persecution for racial or 
        religious reasons by Nazi Germany or any other Axis 
        regime or as an heir of the victim. The amount of and 
        the eligibility for any public assistance, benefit, or 
        similar entitlement is not affected by the inclusion 
        of items (i) and (ii) of this paragraph in gross income 
        for federal income tax purposes. This paragraph is 
        exempt from the provisions of Section 250;
            (Y) For taxable years beginning on or after 
        January 1, 2002 and ending on or before December 31, 
        2004, moneys contributed in the taxable year to a 
        College Savings Pool account under Section 16.5 of the 
        State Treasurer Act, except that amounts excluded from 
        gross income under Section 529(c)(3)(C)(i) of the 
        Internal Revenue Code shall not be considered moneys 
        contributed under this subparagraph (Y). For taxable 
        years beginning on or after January 1, 2005, a maximum 
        of $10,000 contributed in the taxable year to (i) a 
        College Savings Pool account under Section 16.5 of the 
        State Treasurer Act or (ii) the Illinois Prepaid 
        Tuition Trust Fund, except that amounts excluded from 
        gross income under Section 529(c)(3)(C)(i) of the 
        Internal Revenue Code shall not be considered moneys 
        contributed under this subparagraph (Y). For purposes 
        of this subparagraph, contributions made by an 
        employer on behalf of an employee, or matching 
        contributions made by an employee, shall be treated as 
        made by the employee. This subparagraph (Y) is exempt 
        from the provisions of Section 250;
            (Z) For taxable years 2001 and thereafter, for the 
        taxable year in which the bonus depreciation deduction 
        is taken on the taxpayer's federal income tax return 
        under subsection (k) of Section 168 of the Internal 
        Revenue Code and for each applicable taxable year 
        thereafter, an amount equal to "x", where:
                (1) "y" equals the amount of the depreciation 
            deduction taken for the taxable year on the 
            taxpayer's federal income tax return on property 
            for which the bonus depreciation deduction was 
            taken in any year under subsection (k) of Section 
            168 of the Internal Revenue Code, but not 
            including the bonus depreciation deduction;
                (2) for taxable years ending on or before 
            December 31, 2005, "x" equals "y" multiplied by 30 
            and then divided by 70 (or "y" multiplied by 
            0.429); and
                (3) for taxable years ending after December 
            31, 2005:
                    (i) for property on which a bonus 
                depreciation deduction of 30% of the adjusted 
                basis was taken, "x" equals "y" multiplied by 
                30 and then divided by 70 (or "y" multiplied 
                by 0.429);
                    (ii) for property on which a bonus 
                depreciation deduction of 50% of the adjusted 
                basis was taken, "x" equals "y" multiplied by 
                1.0;
                    (iii) for property on which a bonus 
                depreciation deduction of 100% of the adjusted 
                basis was taken in a taxable year ending on or 
                after December 31, 2021, "x" equals the 
                depreciation deduction that would be allowed 
                on that property if the taxpayer had made the 
                election under Section 168(k)(7) of the 
                Internal Revenue Code to not claim bonus 
                depreciation on that property; and
                    (iv) for property on which a bonus 
                depreciation deduction of a percentage other 
                than 30%, 50% or 100% of the adjusted basis 
                was taken in a taxable year ending on or after 
                December 31, 2021, "x" equals "y" multiplied 
                by 100 times the percentage bonus depreciation 
                on the property (that is, 100(bonus%)) and 
                then divided by 100 times 1 minus the 
                percentage bonus depreciation on the property 
                (that is, 100(1-bonus%)). 
            The aggregate amount deducted under this 
        subparagraph in all taxable years for any one piece of 
        property may not exceed the amount of the bonus 
        depreciation deduction taken on that property on the 
        taxpayer's federal income tax return under subsection 
        (k) of Section 168 of the Internal Revenue Code. This 
        subparagraph (Z) is exempt from the provisions of 
        Section 250;
            (AA) If the taxpayer sells, transfers, abandons, 
        or otherwise disposes of property for which the 
        taxpayer was required in any taxable year to make an 
        addition modification under subparagraph (D-15), then 
        an amount equal to that addition modification. 
            If the taxpayer continues to own property through 
        the last day of the last tax year for which a 
        subtraction is allowed with respect to that property 
        under subparagraph (Z) and for which the taxpayer was 
        required in any taxable year to make an addition 
        modification under subparagraph (D-15), then an amount 
        equal to that addition modification. 
            The taxpayer is allowed to take the deduction 
        under this subparagraph only once with respect to any 
        one piece of property.
            This subparagraph (AA) is exempt from the 
        provisions of Section 250;
            (BB) Any amount included in adjusted gross income, 
        other than salary, received by a driver in a 
        ridesharing arrangement using a motor vehicle;
            (CC) The amount of (i) any interest income (net of 
        the deductions allocable thereto) taken into account 
        for the taxable year with respect to a transaction 
        with a taxpayer that is required to make an addition 
        modification with respect to such transaction under 
        Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
        the amount of that addition modification, and (ii) any 
        income from intangible property (net of the deductions 
        allocable thereto) taken into account for the taxable 
        year with respect to a transaction with a taxpayer 
        that is required to make an addition modification with 
        respect to such transaction under Section 
        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
        203(d)(2)(D-8), but not to exceed the amount of that 
        addition modification. This subparagraph (CC) is 
        exempt from the provisions of Section 250;
            (DD) An amount equal to the interest income taken 
        into account for the taxable year (net of the 
        deductions allocable thereto) with respect to 
        transactions with (i) a foreign person who would be a 
        member of the taxpayer's unitary business group but 
        for the fact that the foreign person's business 
        activity outside the United States is 80% or more of 
        that person's total business activity and (ii) for 
        taxable years ending on or after December 31, 2008, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304, but 
        not to exceed the addition modification required to be 
        made for the same taxable year under Section 
        203(a)(2)(D-17) for interest paid, accrued, or 
        incurred, directly or indirectly, to the same person. 
        This subparagraph (DD) is exempt from the provisions 
        of Section 250; 
            (EE) An amount equal to the income from intangible 
        property taken into account for the taxable year (net 
        of the deductions allocable thereto) with respect to 
        transactions with (i) a foreign person who would be a 
        member of the taxpayer's unitary business group but 
        for the fact that the foreign person's business 
        activity outside the United States is 80% or more of 
        that person's total business activity and (ii) for 
        taxable years ending on or after December 31, 2008, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304, but 
        not to exceed the addition modification required to be 
        made for the same taxable year under Section 
        203(a)(2)(D-18) for intangible expenses and costs 
        paid, accrued, or incurred, directly or indirectly, to 
        the same foreign person. This subparagraph (EE) is 
        exempt from the provisions of Section 250;
            (FF) An amount equal to any amount awarded to the 
        taxpayer during the taxable year by the Court of 
        Claims under subsection (c) of Section 8 of the Court 
        of Claims Act for time unjustly served in a State 
        prison. This subparagraph (FF) is exempt from the 
        provisions of Section 250; 
            (GG) For taxable years ending on or after December 
        31, 2011, in the case of a taxpayer who was required to 
        add back any insurance premiums under Section 
        203(a)(2)(D-19), such taxpayer may elect to subtract 
        that part of a reimbursement received from the 
        insurance company equal to the amount of the expense 
        or loss (including expenses incurred by the insurance 
        company) that would have been taken into account as a 
        deduction for federal income tax purposes if the 
        expense or loss had been uninsured. If a taxpayer 
        makes the election provided for by this subparagraph 
        (GG), the insurer to which the premiums were paid must 
        add back to income the amount subtracted by the 
        taxpayer pursuant to this subparagraph (GG). This 
        subparagraph (GG) is exempt from the provisions of 
        Section 250; 
            (HH) For taxable years beginning on or after 
        January 1, 2018 and prior to January 1, 2028, a maximum 
        of $10,000 contributed in the taxable year to a 
        qualified ABLE account under Section 16.6 of the State 
        Treasurer Act, except that amounts excluded from gross 
        income under Section 529(c)(3)(C)(i) or Section 
        529A(c)(1)(C) of the Internal Revenue Code shall not 
        be considered moneys contributed under this 
        subparagraph (HH). For purposes of this subparagraph 
        (HH), contributions made by an employer on behalf of 
        an employee, or matching contributions made by an 
        employee, shall be treated as made by the employee; 
            (II) For taxable years that begin on or after 
        January 1, 2021 and begin before January 1, 2026, the 
        amount that is included in the taxpayer's federal 
        adjusted gross income pursuant to Section 61 of the 
        Internal Revenue Code as discharge of indebtedness 
        attributable to student loan forgiveness and that is 
        not excluded from the taxpayer's federal adjusted 
        gross income pursuant to paragraph (5) of subsection 
        (f) of Section 108 of the Internal Revenue Code; and 
            (JJ) For taxable years beginning on or after 
        January 1, 2023, for any cannabis establishment 
        operating in this State and licensed under the 
        Cannabis Regulation and Tax Act or any cannabis 
        cultivation center or medical cannabis dispensing 
        organization operating in this State and licensed 
        under the Compassionate Use of Medical Cannabis 
        Program Act, an amount equal to the deductions that 
        were disallowed under Section 280E of the Internal 
        Revenue Code for the taxable year and that would not be 
        added back under this subsection. The provisions of 
        this subparagraph (JJ) are exempt from the provisions 
        of Section 250; . 
            (KK) (JJ) To the extent includible in gross income 
        for federal income tax purposes, any amount awarded or 
        paid to the taxpayer as a result of a judgment or 
        settlement for fertility fraud as provided in Section 
        15 of the Illinois Fertility Fraud Act, donor 
        fertility fraud as provided in Section 20 of the 
        Illinois Fertility Fraud Act, or similar action in 
        another state; and . 
            (LL) For taxable years beginning on or after 
        January 1, 2026, if the taxpayer is a qualified 
        worker, as defined in the Workforce Development 
        through Charitable Loan Repayment Act, an amount equal 
        to the amount included in the taxpayer's federal 
        adjusted gross income that is attributable to student 
        loan repayment assistance received by the taxpayer 
        during the taxable year from a qualified community 
        foundation under the provisions of the Workforce 
        Development Through Charitable Loan Repayment Act. 
            This subparagraph (LL) is exempt from the 
        provisions of Section 250. 
 
    (b) Corporations.
        (1) In general. In the case of a corporation, base 
    income means an amount equal to the taxpayer's taxable 
    income for the taxable year as modified by paragraph (2).
        (2) Modifications. The taxable income referred to in 
    paragraph (1) shall be modified by adding thereto the sum 
    of the following amounts:
            (A) An amount equal to all amounts paid or accrued 
        to the taxpayer as interest and all distributions 
        received from regulated investment companies during 
        the taxable year to the extent excluded from gross 
        income in the computation of taxable income;
            (B) An amount equal to the amount of tax imposed by 
        this Act to the extent deducted from gross income in 
        the computation of taxable income for the taxable 
        year;
            (C) In the case of a regulated investment company, 
        an amount equal to the excess of (i) the net long-term 
        capital gain for the taxable year, over (ii) the 
        amount of the capital gain dividends designated as 
        such in accordance with Section 852(b)(3)(C) of the 
        Internal Revenue Code and any amount designated under 
        Section 852(b)(3)(D) of the Internal Revenue Code, 
        attributable to the taxable year (this amendatory Act 
        of 1995 (Public Act 89-89) is declarative of existing 
        law and is not a new enactment);
            (D) The amount of any net operating loss deduction 
        taken in arriving at taxable income, other than a net 
        operating loss carried forward from a taxable year 
        ending prior to December 31, 1986;
            (E) For taxable years in which a net operating 
        loss carryback or carryforward from a taxable year 
        ending prior to December 31, 1986 is an element of 
        taxable income under paragraph (1) of subsection (e) 
        or subparagraph (E) of paragraph (2) of subsection 
        (e), the amount by which addition modifications other 
        than those provided by this subparagraph (E) exceeded 
        subtraction modifications in such earlier taxable 
        year, with the following limitations applied in the 
        order that they are listed:
                (i) the addition modification relating to the 
            net operating loss carried back or forward to the 
            taxable year from any taxable year ending prior to 
            December 31, 1986 shall be reduced by the amount 
            of addition modification under this subparagraph 
            (E) which related to that net operating loss and 
            which was taken into account in calculating the 
            base income of an earlier taxable year, and
                (ii) the addition modification relating to the 
            net operating loss carried back or forward to the 
            taxable year from any taxable year ending prior to 
            December 31, 1986 shall not exceed the amount of 
            such carryback or carryforward;
            For taxable years in which there is a net 
        operating loss carryback or carryforward from more 
        than one other taxable year ending prior to December 
        31, 1986, the addition modification provided in this 
        subparagraph (E) shall be the sum of the amounts 
        computed independently under the preceding provisions 
        of this subparagraph (E) for each such taxable year;
            (E-5) For taxable years ending after December 31, 
        1997, an amount equal to any eligible remediation 
        costs that the corporation deducted in computing 
        adjusted gross income and for which the corporation 
        claims a credit under subsection (l) of Section 201;
            (E-10) For taxable years 2001 and thereafter, an 
        amount equal to the bonus depreciation deduction taken 
        on the taxpayer's federal income tax return for the 
        taxable year under subsection (k) of Section 168 of 
        the Internal Revenue Code;
            (E-11) If the taxpayer sells, transfers, abandons, 
        or otherwise disposes of property for which the 
        taxpayer was required in any taxable year to make an 
        addition modification under subparagraph (E-10), then 
        an amount equal to the aggregate amount of the 
        deductions taken in all taxable years under 
        subparagraph (T) with respect to that property.
            If the taxpayer continues to own property through 
        the last day of the last tax year for which a 
        subtraction is allowed with respect to that property 
        under subparagraph (T) and for which the taxpayer was 
        allowed in any taxable year to make a subtraction 
        modification under subparagraph (T), then an amount 
        equal to that subtraction modification. 
            The taxpayer is required to make the addition 
        modification under this subparagraph only once with 
        respect to any one piece of property;
            (E-12) An amount equal to the amount otherwise 
        allowed as a deduction in computing base income for 
        interest paid, accrued, or incurred, directly or 
        indirectly, (i) for taxable years ending on or after 
        December 31, 2004, to a foreign person who would be a 
        member of the same unitary business group but for the 
        fact the foreign person's business activity outside 
        the United States is 80% or more of the foreign 
        person's total business activity and (ii) for taxable 
        years ending on or after December 31, 2008, to a person 
        who would be a member of the same unitary business 
        group but for the fact that the person is prohibited 
        under Section 1501(a)(27) from being included in the 
        unitary business group because he or she is ordinarily 
        required to apportion business income under different 
        subsections of Section 304. The addition modification 
        required by this subparagraph shall be reduced to the 
        extent that dividends were included in base income of 
        the unitary group for the same taxable year and 
        received by the taxpayer or by a member of the 
        taxpayer's unitary business group (including amounts 
        included in gross income pursuant to Sections 951 
        through 964 of the Internal Revenue Code and amounts 
        included in gross income under Section 78 of the 
        Internal Revenue Code) with respect to the stock of 
        the same person to whom the interest was paid, 
        accrued, or incurred. 
            This paragraph shall not apply to the following: 
                (i) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person who 
            is subject in a foreign country or state, other 
            than a state which requires mandatory unitary 
            reporting, to a tax on or measured by net income 
            with respect to such interest; or
                (ii) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person if 
            the taxpayer can establish, based on a 
            preponderance of the evidence, both of the 
            following:
                    (a) the person, during the same taxable 
                year, paid, accrued, or incurred, the interest 
                to a person that is not a related member, and
                    (b) the transaction giving rise to the 
                interest expense between the taxpayer and the 
                person did not have as a principal purpose the 
                avoidance of Illinois income tax, and is paid 
                pursuant to a contract or agreement that 
                reflects an arm's-length interest rate and 
                terms; or 
                (iii) the taxpayer can establish, based on 
            clear and convincing evidence, that the interest 
            paid, accrued, or incurred relates to a contract 
            or agreement entered into at arm's-length rates 
            and terms and the principal purpose for the 
            payment is not federal or Illinois tax avoidance; 
            or 
                (iv) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person if 
            the taxpayer establishes by clear and convincing 
            evidence that the adjustments are unreasonable; or 
            if the taxpayer and the Director agree in writing 
            to the application or use of an alternative method 
            of apportionment under Section 304(f). 
                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act 
            for any tax year beginning after the effective 
            date of this amendment provided such adjustment is 
            made pursuant to regulation adopted by the 
            Department and such regulations provide methods 
            and standards by which the Department will utilize 
            its authority under Section 404 of this Act; 
            (E-13) An amount equal to the amount of intangible 
        expenses and costs otherwise allowed as a deduction in 
        computing base income, and that were paid, accrued, or 
        incurred, directly or indirectly, (i) for taxable 
        years ending on or after December 31, 2004, to a 
        foreign person who would be a member of the same 
        unitary business group but for the fact that the 
        foreign person's business activity outside the United 
        States is 80% or more of that person's total business 
        activity and (ii) for taxable years ending on or after 
        December 31, 2008, to a person who would be a member of 
        the same unitary business group but for the fact that 
        the person is prohibited under Section 1501(a)(27) 
        from being included in the unitary business group 
        because he or she is ordinarily required to apportion 
        business income under different subsections of Section 
        304. The addition modification required by this 
        subparagraph shall be reduced to the extent that 
        dividends were included in base income of the unitary 
        group for the same taxable year and received by the 
        taxpayer or by a member of the taxpayer's unitary 
        business group (including amounts included in gross 
        income pursuant to Sections 951 through 964 of the 
        Internal Revenue Code and amounts included in gross 
        income under Section 78 of the Internal Revenue Code) 
        with respect to the stock of the same person to whom 
        the intangible expenses and costs were directly or 
        indirectly paid, incurred, or accrued. The preceding 
        sentence shall not apply to the extent that the same 
        dividends caused a reduction to the addition 
        modification required under Section 203(b)(2)(E-12) of 
        this Act. As used in this subparagraph, the term 
        "intangible expenses and costs" includes (1) expenses, 
        losses, and costs for, or related to, the direct or 
        indirect acquisition, use, maintenance or management, 
        ownership, sale, exchange, or any other disposition of 
        intangible property; (2) losses incurred, directly or 
        indirectly, from factoring transactions or discounting 
        transactions; (3) royalty, patent, technical, and 
        copyright fees; (4) licensing fees; and (5) other 
        similar expenses and costs. For purposes of this 
        subparagraph, "intangible property" includes patents, 
        patent applications, trade names, trademarks, service 
        marks, copyrights, mask works, trade secrets, and 
        similar types of intangible assets.
            This paragraph shall not apply to the following:
                (i) any item of intangible expenses or costs 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a person who 
            is subject in a foreign country or state, other 
            than a state which requires mandatory unitary 
            reporting, to a tax on or measured by net income 
            with respect to such item; or
                (ii) any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, if the taxpayer can establish, based 
            on a preponderance of the evidence, both of the 
            following:
                    (a) the person during the same taxable 
                year paid, accrued, or incurred, the 
                intangible expense or cost to a person that is 
                not a related member, and
                    (b) the transaction giving rise to the 
                intangible expense or cost between the 
                taxpayer and the person did not have as a 
                principal purpose the avoidance of Illinois 
                income tax, and is paid pursuant to a contract 
                or agreement that reflects arm's-length terms; 
                or
                (iii) any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a person if 
            the taxpayer establishes by clear and convincing 
            evidence, that the adjustments are unreasonable; 
            or if the taxpayer and the Director agree in 
            writing to the application or use of an 
            alternative method of apportionment under Section 
            304(f); 
                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act 
            for any tax year beginning after the effective 
            date of this amendment provided such adjustment is 
            made pursuant to regulation adopted by the 
            Department and such regulations provide methods 
            and standards by which the Department will utilize 
            its authority under Section 404 of this Act; 
            (E-14) For taxable years ending on or after 
        December 31, 2008, an amount equal to the amount of 
        insurance premium expenses and costs otherwise allowed 
        as a deduction in computing base income, and that were 
        paid, accrued, or incurred, directly or indirectly, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304. The 
        addition modification required by this subparagraph 
        shall be reduced to the extent that dividends were 
        included in base income of the unitary group for the 
        same taxable year and received by the taxpayer or by a 
        member of the taxpayer's unitary business group 
        (including amounts included in gross income under 
        Sections 951 through 964 of the Internal Revenue Code 
        and amounts included in gross income under Section 78 
        of the Internal Revenue Code) with respect to the 
        stock of the same person to whom the premiums and costs 
        were directly or indirectly paid, incurred, or 
        accrued. The preceding sentence does not apply to the 
        extent that the same dividends caused a reduction to 
        the addition modification required under Section 
        203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this 
        Act; 
            (E-15) For taxable years beginning after December 
        31, 2008, any deduction for dividends paid by a 
        captive real estate investment trust that is allowed 
        to a real estate investment trust under Section 
        857(b)(2)(B) of the Internal Revenue Code for 
        dividends paid;
            (E-16) An amount equal to the credit allowable to 
        the taxpayer under Section 218(a) of this Act, 
        determined without regard to Section 218(c) of this 
        Act;
            (E-17) For taxable years ending on or after 
        December 31, 2017, an amount equal to the deduction 
        allowed under Section 199 of the Internal Revenue Code 
        for the taxable year; 
            (E-18) for taxable years beginning after December 
        31, 2018, an amount equal to the deduction allowed 
        under Section 250(a)(1)(A) of the Internal Revenue 
        Code for the taxable year; 
            (E-19) for taxable years ending on or after June 
        30, 2021, an amount equal to the deduction allowed 
        under Section 250(a)(1)(B)(i) of the Internal Revenue 
        Code for the taxable year; 
            (E-20) for taxable years ending on or after June 
        30, 2021, an amount equal to the deduction allowed 
        under Sections 243(e) and 245A(a) of the Internal 
        Revenue Code for the taxable year. 
    and by deducting from the total so obtained the sum of the 
    following amounts:
            (F) An amount equal to the amount of any tax 
        imposed by this Act which was refunded to the taxpayer 
        and included in such total for the taxable year;
            (G) An amount equal to any amount included in such 
        total under Section 78 of the Internal Revenue Code;
            (H) In the case of a regulated investment company, 
        an amount equal to the amount of exempt interest 
        dividends as defined in subsection (b)(5) of Section 
        852 of the Internal Revenue Code, paid to shareholders 
        for the taxable year;
            (I) With the exception of any amounts subtracted 
        under subparagraph (J), an amount equal to the sum of 
        all amounts disallowed as deductions by (i) Sections 
        171(a)(2) and 265(a)(2) and amounts disallowed as 
        interest expense by Section 291(a)(3) of the Internal 
        Revenue Code, and all amounts of expenses allocable to 
        interest and disallowed as deductions by Section 
        265(a)(1) of the Internal Revenue Code; and (ii) for 
        taxable years ending on or after August 13, 1999, 
        Sections 171(a)(2), 265, 280C, 291(a)(3), and 
        832(b)(5)(B)(i) of the Internal Revenue Code, plus, 
        for tax years ending on or after December 31, 2011, 
        amounts disallowed as deductions by Section 45G(e)(3) 
        of the Internal Revenue Code and, for taxable years 
        ending on or after December 31, 2008, any amount 
        included in gross income under Section 87 of the 
        Internal Revenue Code and the policyholders' share of 
        tax-exempt interest of a life insurance company under 
        Section 807(a)(2)(B) of the Internal Revenue Code (in 
        the case of a life insurance company with gross income 
        from a decrease in reserves for the tax year) or 
        Section 807(b)(1)(B) of the Internal Revenue Code (in 
        the case of a life insurance company allowed a 
        deduction for an increase in reserves for the tax 
        year); the provisions of this subparagraph are exempt 
        from the provisions of Section 250;
            (J) An amount equal to all amounts included in 
        such total which are exempt from taxation by this 
        State either by reason of its statutes or Constitution 
        or by reason of the Constitution, treaties or statutes 
        of the United States; provided that, in the case of any 
        statute of this State that exempts income derived from 
        bonds or other obligations from the tax imposed under 
        this Act, the amount exempted shall be the interest 
        net of bond premium amortization;
            (K) An amount equal to those dividends included in 
        such total which were paid by a corporation which 
        conducts business operations in a River Edge 
        Redevelopment Zone or zones created under the River 
        Edge Redevelopment Zone Act and conducts substantially 
        all of its operations in a River Edge Redevelopment 
        Zone or zones. This subparagraph (K) is exempt from 
        the provisions of Section 250;
            (L) An amount equal to those dividends included in 
        such total that were paid by a corporation that 
        conducts business operations in a federally designated 
        Foreign Trade Zone or Sub-Zone and that is designated 
        a High Impact Business located in Illinois; provided 
        that dividends eligible for the deduction provided in 
        subparagraph (K) of paragraph 2 of this subsection 
        shall not be eligible for the deduction provided under 
        this subparagraph (L);
            (M) For any taxpayer that is a financial 
        organization within the meaning of Section 304(c) of 
        this Act, an amount included in such total as interest 
        income from a loan or loans made by such taxpayer to a 
        borrower, to the extent that such a loan is secured by 
        property which is eligible for the River Edge 
        Redevelopment Zone Investment Credit. To determine the 
        portion of a loan or loans that is secured by property 
        eligible for a Section 201(f) investment credit to the 
        borrower, the entire principal amount of the loan or 
        loans between the taxpayer and the borrower should be 
        divided into the basis of the Section 201(f) 
        investment credit property which secures the loan or 
        loans, using for this purpose the original basis of 
        such property on the date that it was placed in service 
        in the River Edge Redevelopment Zone. The subtraction 
        modification available to the taxpayer in any year 
        under this subsection shall be that portion of the 
        total interest paid by the borrower with respect to 
        such loan attributable to the eligible property as 
        calculated under the previous sentence. This 
        subparagraph (M) is exempt from the provisions of 
        Section 250;
            (M-1) For any taxpayer that is a financial 
        organization within the meaning of Section 304(c) of 
        this Act, an amount included in such total as interest 
        income from a loan or loans made by such taxpayer to a 
        borrower, to the extent that such a loan is secured by 
        property which is eligible for the High Impact 
        Business Investment Credit. To determine the portion 
        of a loan or loans that is secured by property eligible 
        for a Section 201(h) investment credit to the 
        borrower, the entire principal amount of the loan or 
        loans between the taxpayer and the borrower should be 
        divided into the basis of the Section 201(h) 
        investment credit property which secures the loan or 
        loans, using for this purpose the original basis of 
        such property on the date that it was placed in service 
        in a federally designated Foreign Trade Zone or 
        Sub-Zone located in Illinois. No taxpayer that is 
        eligible for the deduction provided in subparagraph 
        (M) of paragraph (2) of this subsection shall be 
        eligible for the deduction provided under this 
        subparagraph (M-1). The subtraction modification 
        available to taxpayers in any year under this 
        subsection shall be that portion of the total interest 
        paid by the borrower with respect to such loan 
        attributable to the eligible property as calculated 
        under the previous sentence;
            (N) Two times any contribution made during the 
        taxable year to a designated zone organization to the 
        extent that the contribution (i) qualifies as a 
        charitable contribution under subsection (c) of 
        Section 170 of the Internal Revenue Code and (ii) 
        must, by its terms, be used for a project approved by 
        the Department of Commerce and Economic Opportunity 
        under Section 11 of the Illinois Enterprise Zone Act 
        or under Section 10-10 of the River Edge Redevelopment 
        Zone Act. This subparagraph (N) is exempt from the 
        provisions of Section 250;
            (O) An amount equal to: (i) 85% for taxable years 
        ending on or before December 31, 1992, or, a 
        percentage equal to the percentage allowable under 
        Section 243(a)(1) of the Internal Revenue Code of 1986 
        for taxable years ending after December 31, 1992, of 
        the amount by which dividends included in taxable 
        income and received from a corporation that is not 
        created or organized under the laws of the United 
        States or any state or political subdivision thereof, 
        including, for taxable years ending on or after 
        December 31, 1988, dividends received or deemed 
        received or paid or deemed paid under Sections 951 
        through 965 of the Internal Revenue Code, exceed the 
        amount of the modification provided under subparagraph 
        (G) of paragraph (2) of this subsection (b) which is 
        related to such dividends, and including, for taxable 
        years ending on or after December 31, 2008, dividends 
        received from a captive real estate investment trust; 
        plus (ii) 100% of the amount by which dividends, 
        included in taxable income and received, including, 
        for taxable years ending on or after December 31, 
        1988, dividends received or deemed received or paid or 
        deemed paid under Sections 951 through 964 of the 
        Internal Revenue Code and including, for taxable years 
        ending on or after December 31, 2008, dividends 
        received from a captive real estate investment trust, 
        from any such corporation specified in clause (i) that 
        would but for the provisions of Section 1504(b)(3) of 
        the Internal Revenue Code be treated as a member of the 
        affiliated group which includes the dividend 
        recipient, exceed the amount of the modification 
        provided under subparagraph (G) of paragraph (2) of 
        this subsection (b) which is related to such 
        dividends. For taxable years ending on or after June 
        30, 2021, (i) for purposes of this subparagraph, the 
        term "dividend" does not include any amount treated as 
        a dividend under Section 1248 of the Internal Revenue 
        Code, and (ii) this subparagraph shall not apply to 
        dividends for which a deduction is allowed under 
        Section 245(a) of the Internal Revenue Code. This 
        subparagraph (O) is exempt from the provisions of 
        Section 250 of this Act;
            (P) An amount equal to any contribution made to a 
        job training project established pursuant to the Tax 
        Increment Allocation Redevelopment Act;
            (Q) An amount equal to the amount of the deduction 
        used to compute the federal income tax credit for 
        restoration of substantial amounts held under claim of 
        right for the taxable year pursuant to Section 1341 of 
        the Internal Revenue Code;
            (R) On and after July 20, 1999, in the case of an 
        attorney-in-fact with respect to whom an interinsurer 
        or a reciprocal insurer has made the election under 
        Section 835 of the Internal Revenue Code, 26 U.S.C. 
        835, an amount equal to the excess, if any, of the 
        amounts paid or incurred by that interinsurer or 
        reciprocal insurer in the taxable year to the 
        attorney-in-fact over the deduction allowed to that 
        interinsurer or reciprocal insurer with respect to the 
        attorney-in-fact under Section 835(b) of the Internal 
        Revenue Code for the taxable year; the provisions of 
        this subparagraph are exempt from the provisions of 
        Section 250;
            (S) For taxable years ending on or after December 
        31, 1997, in the case of a Subchapter S corporation, an 
        amount equal to all amounts of income allocable to a 
        shareholder subject to the Personal Property Tax 
        Replacement Income Tax imposed by subsections (c) and 
        (d) of Section 201 of this Act, including amounts 
        allocable to organizations exempt from federal income 
        tax by reason of Section 501(a) of the Internal 
        Revenue Code. This subparagraph (S) is exempt from the 
        provisions of Section 250;
            (T) For taxable years 2001 and thereafter, for the 
        taxable year in which the bonus depreciation deduction 
        is taken on the taxpayer's federal income tax return 
        under subsection (k) of Section 168 of the Internal 
        Revenue Code and for each applicable taxable year 
        thereafter, an amount equal to "x", where:
                (1) "y" equals the amount of the depreciation 
            deduction taken for the taxable year on the 
            taxpayer's federal income tax return on property 
            for which the bonus depreciation deduction was 
            taken in any year under subsection (k) of Section 
            168 of the Internal Revenue Code, but not 
            including the bonus depreciation deduction;
                (2) for taxable years ending on or before 
            December 31, 2005, "x" equals "y" multiplied by 30 
            and then divided by 70 (or "y" multiplied by 
            0.429); and
                (3) for taxable years ending after December 
            31, 2005:
                    (i) for property on which a bonus 
                depreciation deduction of 30% of the adjusted 
                basis was taken, "x" equals "y" multiplied by 
                30 and then divided by 70 (or "y" multiplied 
                by 0.429);
                    (ii) for property on which a bonus 
                depreciation deduction of 50% of the adjusted 
                basis was taken, "x" equals "y" multiplied by 
                1.0;
                    (iii) for property on which a bonus 
                depreciation deduction of 100% of the adjusted 
                basis was taken in a taxable year ending on or 
                after December 31, 2021, "x" equals the 
                depreciation deduction that would be allowed 
                on that property if the taxpayer had made the 
                election under Section 168(k)(7) of the 
                Internal Revenue Code to not claim bonus 
                depreciation on that property; and
                    (iv) for property on which a bonus 
                depreciation deduction of a percentage other 
                than 30%, 50% or 100% of the adjusted basis 
                was taken in a taxable year ending on or after 
                December 31, 2021, "x" equals "y" multiplied 
                by 100 times the percentage bonus depreciation 
                on the property (that is, 100(bonus%)) and 
                then divided by 100 times 1 minus the 
                percentage bonus depreciation on the property 
                (that is, 100(1-bonus%)). 
            The aggregate amount deducted under this 
        subparagraph in all taxable years for any one piece of 
        property may not exceed the amount of the bonus 
        depreciation deduction taken on that property on the 
        taxpayer's federal income tax return under subsection 
        (k) of Section 168 of the Internal Revenue Code. This 
        subparagraph (T) is exempt from the provisions of 
        Section 250;
            (U) If the taxpayer sells, transfers, abandons, or 
        otherwise disposes of property for which the taxpayer 
        was required in any taxable year to make an addition 
        modification under subparagraph (E-10), then an amount 
        equal to that addition modification.
            If the taxpayer continues to own property through 
        the last day of the last tax year for which a 
        subtraction is allowed with respect to that property 
        under subparagraph (T) and for which the taxpayer was 
        required in any taxable year to make an addition 
        modification under subparagraph (E-10), then an amount 
        equal to that addition modification. 
            The taxpayer is allowed to take the deduction 
        under this subparagraph only once with respect to any 
        one piece of property.
            This subparagraph (U) is exempt from the 
        provisions of Section 250;
            (V) The amount of: (i) any interest income (net of 
        the deductions allocable thereto) taken into account 
        for the taxable year with respect to a transaction 
        with a taxpayer that is required to make an addition 
        modification with respect to such transaction under 
        Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
        the amount of such addition modification, (ii) any 
        income from intangible property (net of the deductions 
        allocable thereto) taken into account for the taxable 
        year with respect to a transaction with a taxpayer 
        that is required to make an addition modification with 
        respect to such transaction under Section 
        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
        203(d)(2)(D-8), but not to exceed the amount of such 
        addition modification, and (iii) any insurance premium 
        income (net of deductions allocable thereto) taken 
        into account for the taxable year with respect to a 
        transaction with a taxpayer that is required to make 
        an addition modification with respect to such 
        transaction under Section 203(a)(2)(D-19), Section 
        203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section 
        203(d)(2)(D-9), but not to exceed the amount of that 
        addition modification. This subparagraph (V) is exempt 
        from the provisions of Section 250; 
            (W) An amount equal to the interest income taken 
        into account for the taxable year (net of the 
        deductions allocable thereto) with respect to 
        transactions with (i) a foreign person who would be a 
        member of the taxpayer's unitary business group but 
        for the fact that the foreign person's business 
        activity outside the United States is 80% or more of 
        that person's total business activity and (ii) for 
        taxable years ending on or after December 31, 2008, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304, but 
        not to exceed the addition modification required to be 
        made for the same taxable year under Section 
        203(b)(2)(E-12) for interest paid, accrued, or 
        incurred, directly or indirectly, to the same person. 
        This subparagraph (W) is exempt from the provisions of 
        Section 250; 
            (X) An amount equal to the income from intangible 
        property taken into account for the taxable year (net 
        of the deductions allocable thereto) with respect to 
        transactions with (i) a foreign person who would be a 
        member of the taxpayer's unitary business group but 
        for the fact that the foreign person's business 
        activity outside the United States is 80% or more of 
        that person's total business activity and (ii) for 
        taxable years ending on or after December 31, 2008, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304, but 
        not to exceed the addition modification required to be 
        made for the same taxable year under Section 
        203(b)(2)(E-13) for intangible expenses and costs 
        paid, accrued, or incurred, directly or indirectly, to 
        the same foreign person. This subparagraph (X) is 
        exempt from the provisions of Section 250; 
            (Y) For taxable years ending on or after December 
        31, 2011, in the case of a taxpayer who was required to 
        add back any insurance premiums under Section 
        203(b)(2)(E-14), such taxpayer may elect to subtract 
        that part of a reimbursement received from the 
        insurance company equal to the amount of the expense 
        or loss (including expenses incurred by the insurance 
        company) that would have been taken into account as a 
        deduction for federal income tax purposes if the 
        expense or loss had been uninsured. If a taxpayer 
        makes the election provided for by this subparagraph 
        (Y), the insurer to which the premiums were paid must 
        add back to income the amount subtracted by the 
        taxpayer pursuant to this subparagraph (Y). This 
        subparagraph (Y) is exempt from the provisions of 
        Section 250; 
            (Z) The difference between the nondeductible 
        controlled foreign corporation dividends under Section 
        965(e)(3) of the Internal Revenue Code over the 
        taxable income of the taxpayer, computed without 
        regard to Section 965(e)(2)(A) of the Internal Revenue 
        Code, and without regard to any net operating loss 
        deduction. This subparagraph (Z) is exempt from the 
        provisions of Section 250; and 
            (AA) For taxable years beginning on or after 
        January 1, 2023, for any cannabis establishment 
        operating in this State and licensed under the 
        Cannabis Regulation and Tax Act or any cannabis 
        cultivation center or medical cannabis dispensing 
        organization operating in this State and licensed 
        under the Compassionate Use of Medical Cannabis 
        Program Act, an amount equal to the deductions that 
        were disallowed under Section 280E of the Internal 
        Revenue Code for the taxable year and that would not be 
        added back under this subsection. The provisions of 
        this subparagraph (AA) are exempt from the provisions 
        of Section 250. 
        (3) Special rule. For purposes of paragraph (2)(A), 
    "gross income" in the case of a life insurance company, 
    for tax years ending on and after December 31, 1994, and 
    prior to December 31, 2011, shall mean the gross 
    investment income for the taxable year and, for tax years 
    ending on or after December 31, 2011, shall mean all 
    amounts included in life insurance gross income under 
    Section 803(a)(3) of the Internal Revenue Code.
 
    (c) Trusts and estates.
        (1) In general. In the case of a trust or estate, base 
    income means an amount equal to the taxpayer's taxable 
    income for the taxable year as modified by paragraph (2).
        (2) Modifications. Subject to the provisions of 
    paragraph (3), the taxable income referred to in paragraph 
    (1) shall be modified by adding thereto the sum of the 
    following amounts:
            (A) An amount equal to all amounts paid or accrued 
        to the taxpayer as interest or dividends during the 
        taxable year to the extent excluded from gross income 
        in the computation of taxable income;
            (B) In the case of (i) an estate, $600; (ii) a 
        trust which, under its governing instrument, is 
        required to distribute all of its income currently, 
        $300; and (iii) any other trust, $100, but in each such 
        case, only to the extent such amount was deducted in 
        the computation of taxable income;
            (C) An amount equal to the amount of tax imposed by 
        this Act to the extent deducted from gross income in 
        the computation of taxable income for the taxable 
        year;
            (D) The amount of any net operating loss deduction 
        taken in arriving at taxable income, other than a net 
        operating loss carried forward from a taxable year 
        ending prior to December 31, 1986;
            (E) For taxable years in which a net operating 
        loss carryback or carryforward from a taxable year 
        ending prior to December 31, 1986 is an element of 
        taxable income under paragraph (1) of subsection (e) 
        or subparagraph (E) of paragraph (2) of subsection 
        (e), the amount by which addition modifications other 
        than those provided by this subparagraph (E) exceeded 
        subtraction modifications in such taxable year, with 
        the following limitations applied in the order that 
        they are listed:
                (i) the addition modification relating to the 
            net operating loss carried back or forward to the 
            taxable year from any taxable year ending prior to 
            December 31, 1986 shall be reduced by the amount 
            of addition modification under this subparagraph 
            (E) which related to that net operating loss and 
            which was taken into account in calculating the 
            base income of an earlier taxable year, and
                (ii) the addition modification relating to the 
            net operating loss carried back or forward to the 
            taxable year from any taxable year ending prior to 
            December 31, 1986 shall not exceed the amount of 
            such carryback or carryforward;
            For taxable years in which there is a net 
        operating loss carryback or carryforward from more 
        than one other taxable year ending prior to December 
        31, 1986, the addition modification provided in this 
        subparagraph (E) shall be the sum of the amounts 
        computed independently under the preceding provisions 
        of this subparagraph (E) for each such taxable year;
            (F) For taxable years ending on or after January 
        1, 1989, an amount equal to the tax deducted pursuant 
        to Section 164 of the Internal Revenue Code if the 
        trust or estate is claiming the same tax for purposes 
        of the Illinois foreign tax credit under Section 601 
        of this Act;
            (G) An amount equal to the amount of the capital 
        gain deduction allowable under the Internal Revenue 
        Code, to the extent deducted from gross income in the 
        computation of taxable income;
            (G-5) For taxable years ending after December 31, 
        1997, an amount equal to any eligible remediation 
        costs that the trust or estate deducted in computing 
        adjusted gross income and for which the trust or 
        estate claims a credit under subsection (l) of Section 
        201;
            (G-10) For taxable years 2001 and thereafter, an 
        amount equal to the bonus depreciation deduction taken 
        on the taxpayer's federal income tax return for the 
        taxable year under subsection (k) of Section 168 of 
        the Internal Revenue Code; and
            (G-11) If the taxpayer sells, transfers, abandons, 
        or otherwise disposes of property for which the 
        taxpayer was required in any taxable year to make an 
        addition modification under subparagraph (G-10), then 
        an amount equal to the aggregate amount of the 
        deductions taken in all taxable years under 
        subparagraph (R) with respect to that property.
            If the taxpayer continues to own property through 
        the last day of the last tax year for which a 
        subtraction is allowed with respect to that property 
        under subparagraph (R) and for which the taxpayer was 
        allowed in any taxable year to make a subtraction 
        modification under subparagraph (R), then an amount 
        equal to that subtraction modification. 
            The taxpayer is required to make the addition 
        modification under this subparagraph only once with 
        respect to any one piece of property;
            (G-12) An amount equal to the amount otherwise 
        allowed as a deduction in computing base income for 
        interest paid, accrued, or incurred, directly or 
        indirectly, (i) for taxable years ending on or after 
        December 31, 2004, to a foreign person who would be a 
        member of the same unitary business group but for the 
        fact that the foreign person's business activity 
        outside the United States is 80% or more of the foreign 
        person's total business activity and (ii) for taxable 
        years ending on or after December 31, 2008, to a person 
        who would be a member of the same unitary business 
        group but for the fact that the person is prohibited 
        under Section 1501(a)(27) from being included in the 
        unitary business group because he or she is ordinarily 
        required to apportion business income under different 
        subsections of Section 304. The addition modification 
        required by this subparagraph shall be reduced to the 
        extent that dividends were included in base income of 
        the unitary group for the same taxable year and 
        received by the taxpayer or by a member of the 
        taxpayer's unitary business group (including amounts 
        included in gross income pursuant to Sections 951 
        through 964 of the Internal Revenue Code and amounts 
        included in gross income under Section 78 of the 
        Internal Revenue Code) with respect to the stock of 
        the same person to whom the interest was paid, 
        accrued, or incurred. 
            This paragraph shall not apply to the following: 
                (i) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person who 
            is subject in a foreign country or state, other 
            than a state which requires mandatory unitary 
            reporting, to a tax on or measured by net income 
            with respect to such interest; or
                (ii) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person if 
            the taxpayer can establish, based on a 
            preponderance of the evidence, both of the 
            following:
                    (a) the person, during the same taxable 
                year, paid, accrued, or incurred, the interest 
                to a person that is not a related member, and
                    (b) the transaction giving rise to the 
                interest expense between the taxpayer and the 
                person did not have as a principal purpose the 
                avoidance of Illinois income tax, and is paid 
                pursuant to a contract or agreement that 
                reflects an arm's-length interest rate and 
                terms; or 
                (iii) the taxpayer can establish, based on 
            clear and convincing evidence, that the interest 
            paid, accrued, or incurred relates to a contract 
            or agreement entered into at arm's-length rates 
            and terms and the principal purpose for the 
            payment is not federal or Illinois tax avoidance; 
            or 
                (iv) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person if 
            the taxpayer establishes by clear and convincing 
            evidence that the adjustments are unreasonable; or 
            if the taxpayer and the Director agree in writing 
            to the application or use of an alternative method 
            of apportionment under Section 304(f). 
                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act 
            for any tax year beginning after the effective 
            date of this amendment provided such adjustment is 
            made pursuant to regulation adopted by the 
            Department and such regulations provide methods 
            and standards by which the Department will utilize 
            its authority under Section 404 of this Act; 
            (G-13) An amount equal to the amount of intangible 
        expenses and costs otherwise allowed as a deduction in 
        computing base income, and that were paid, accrued, or 
        incurred, directly or indirectly, (i) for taxable 
        years ending on or after December 31, 2004, to a 
        foreign person who would be a member of the same 
        unitary business group but for the fact that the 
        foreign person's business activity outside the United 
        States is 80% or more of that person's total business 
        activity and (ii) for taxable years ending on or after 
        December 31, 2008, to a person who would be a member of 
        the same unitary business group but for the fact that 
        the person is prohibited under Section 1501(a)(27) 
        from being included in the unitary business group 
        because he or she is ordinarily required to apportion 
        business income under different subsections of Section 
        304. The addition modification required by this 
        subparagraph shall be reduced to the extent that 
        dividends were included in base income of the unitary 
        group for the same taxable year and received by the 
        taxpayer or by a member of the taxpayer's unitary 
        business group (including amounts included in gross 
        income pursuant to Sections 951 through 964 of the 
        Internal Revenue Code and amounts included in gross 
        income under Section 78 of the Internal Revenue Code) 
        with respect to the stock of the same person to whom 
        the intangible expenses and costs were directly or 
        indirectly paid, incurred, or accrued. The preceding 
        sentence shall not apply to the extent that the same 
        dividends caused a reduction to the addition 
        modification required under Section 203(c)(2)(G-12) of 
        this Act. As used in this subparagraph, the term 
        "intangible expenses and costs" includes: (1) 
        expenses, losses, and costs for or related to the 
        direct or indirect acquisition, use, maintenance or 
        management, ownership, sale, exchange, or any other 
        disposition of intangible property; (2) losses 
        incurred, directly or indirectly, from factoring 
        transactions or discounting transactions; (3) royalty, 
        patent, technical, and copyright fees; (4) licensing 
        fees; and (5) other similar expenses and costs. For 
        purposes of this subparagraph, "intangible property" 
        includes patents, patent applications, trade names, 
        trademarks, service marks, copyrights, mask works, 
        trade secrets, and similar types of intangible assets.
            This paragraph shall not apply to the following:
                (i) any item of intangible expenses or costs 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a person who 
            is subject in a foreign country or state, other 
            than a state which requires mandatory unitary 
            reporting, to a tax on or measured by net income 
            with respect to such item; or
                (ii) any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, if the taxpayer can establish, based 
            on a preponderance of the evidence, both of the 
            following:
                    (a) the person during the same taxable 
                year paid, accrued, or incurred, the 
                intangible expense or cost to a person that is 
                not a related member, and
                    (b) the transaction giving rise to the 
                intangible expense or cost between the 
                taxpayer and the person did not have as a 
                principal purpose the avoidance of Illinois 
                income tax, and is paid pursuant to a contract 
                or agreement that reflects arm's-length terms; 
                or
                (iii) any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a person if 
            the taxpayer establishes by clear and convincing 
            evidence, that the adjustments are unreasonable; 
            or if the taxpayer and the Director agree in 
            writing to the application or use of an 
            alternative method of apportionment under Section 
            304(f); 
                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act 
            for any tax year beginning after the effective 
            date of this amendment provided such adjustment is 
            made pursuant to regulation adopted by the 
            Department and such regulations provide methods 
            and standards by which the Department will utilize 
            its authority under Section 404 of this Act; 
            (G-14) For taxable years ending on or after 
        December 31, 2008, an amount equal to the amount of 
        insurance premium expenses and costs otherwise allowed 
        as a deduction in computing base income, and that were 
        paid, accrued, or incurred, directly or indirectly, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304. The 
        addition modification required by this subparagraph 
        shall be reduced to the extent that dividends were 
        included in base income of the unitary group for the 
        same taxable year and received by the taxpayer or by a 
        member of the taxpayer's unitary business group 
        (including amounts included in gross income under 
        Sections 951 through 964 of the Internal Revenue Code 
        and amounts included in gross income under Section 78 
        of the Internal Revenue Code) with respect to the 
        stock of the same person to whom the premiums and costs 
        were directly or indirectly paid, incurred, or 
        accrued. The preceding sentence does not apply to the 
        extent that the same dividends caused a reduction to 
        the addition modification required under Section 
        203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this 
        Act;
            (G-15) An amount equal to the credit allowable to 
        the taxpayer under Section 218(a) of this Act, 
        determined without regard to Section 218(c) of this 
        Act;
            (G-16) For taxable years ending on or after 
        December 31, 2017, an amount equal to the deduction 
        allowed under Section 199 of the Internal Revenue Code 
        for the taxable year; 
    and by deducting from the total so obtained the sum of the 
    following amounts:
            (H) An amount equal to all amounts included in 
        such total pursuant to the provisions of Sections 
        402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408 
        of the Internal Revenue Code or included in such total 
        as distributions under the provisions of any 
        retirement or disability plan for employees of any 
        governmental agency or unit, or retirement payments to 
        retired partners, which payments are excluded in 
        computing net earnings from self employment by Section 
        1402 of the Internal Revenue Code and regulations 
        adopted pursuant thereto;
            (I) The valuation limitation amount;
            (J) An amount equal to the amount of any tax 
        imposed by this Act which was refunded to the taxpayer 
        and included in such total for the taxable year;
            (K) An amount equal to all amounts included in 
        taxable income as modified by subparagraphs (A), (B), 
        (C), (D), (E), (F) and (G) which are exempt from 
        taxation by this State either by reason of its 
        statutes or Constitution or by reason of the 
        Constitution, treaties or statutes of the United 
        States; provided that, in the case of any statute of 
        this State that exempts income derived from bonds or 
        other obligations from the tax imposed under this Act, 
        the amount exempted shall be the interest net of bond 
        premium amortization;
            (L) With the exception of any amounts subtracted 
        under subparagraph (K), an amount equal to the sum of 
        all amounts disallowed as deductions by (i) Sections 
        171(a)(2) and 265(a)(2) of the Internal Revenue Code, 
        and all amounts of expenses allocable to interest and 
        disallowed as deductions by Section 265(a)(1) of the 
        Internal Revenue Code; and (ii) for taxable years 
        ending on or after August 13, 1999, Sections 
        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the 
        Internal Revenue Code, plus, (iii) for taxable years 
        ending on or after December 31, 2011, Section 
        45G(e)(3) of the Internal Revenue Code and, for 
        taxable years ending on or after December 31, 2008, 
        any amount included in gross income under Section 87 
        of the Internal Revenue Code; the provisions of this 
        subparagraph are exempt from the provisions of Section 
        250;
            (M) An amount equal to those dividends included in 
        such total which were paid by a corporation which 
        conducts business operations in a River Edge 
        Redevelopment Zone or zones created under the River 
        Edge Redevelopment Zone Act and conducts substantially 
        all of its operations in a River Edge Redevelopment 
        Zone or zones. This subparagraph (M) is exempt from 
        the provisions of Section 250;
            (N) An amount equal to any contribution made to a 
        job training project established pursuant to the Tax 
        Increment Allocation Redevelopment Act;
            (O) An amount equal to those dividends included in 
        such total that were paid by a corporation that 
        conducts business operations in a federally designated 
        Foreign Trade Zone or Sub-Zone and that is designated 
        a High Impact Business located in Illinois; provided 
        that dividends eligible for the deduction provided in 
        subparagraph (M) of paragraph (2) of this subsection 
        shall not be eligible for the deduction provided under 
        this subparagraph (O);
            (P) An amount equal to the amount of the deduction 
        used to compute the federal income tax credit for 
        restoration of substantial amounts held under claim of 
        right for the taxable year pursuant to Section 1341 of 
        the Internal Revenue Code;
            (Q) For taxable year 1999 and thereafter, an 
        amount equal to the amount of any (i) distributions, 
        to the extent includible in gross income for federal 
        income tax purposes, made to the taxpayer because of 
        his or her status as a victim of persecution for racial 
        or religious reasons by Nazi Germany or any other Axis 
        regime or as an heir of the victim and (ii) items of 
        income, to the extent includible in gross income for 
        federal income tax purposes, attributable to, derived 
        from or in any way related to assets stolen from, 
        hidden from, or otherwise lost to a victim of 
        persecution for racial or religious reasons by Nazi 
        Germany or any other Axis regime immediately prior to, 
        during, and immediately after World War II, including, 
        but not limited to, interest on the proceeds 
        receivable as insurance under policies issued to a 
        victim of persecution for racial or religious reasons 
        by Nazi Germany or any other Axis regime by European 
        insurance companies immediately prior to and during 
        World War II; provided, however, this subtraction from 
        federal adjusted gross income does not apply to assets 
        acquired with such assets or with the proceeds from 
        the sale of such assets; provided, further, this 
        paragraph shall only apply to a taxpayer who was the 
        first recipient of such assets after their recovery 
        and who is a victim of persecution for racial or 
        religious reasons by Nazi Germany or any other Axis 
        regime or as an heir of the victim. The amount of and 
        the eligibility for any public assistance, benefit, or 
        similar entitlement is not affected by the inclusion 
        of items (i) and (ii) of this paragraph in gross income 
        for federal income tax purposes. This paragraph is 
        exempt from the provisions of Section 250;
            (R) For taxable years 2001 and thereafter, for the 
        taxable year in which the bonus depreciation deduction 
        is taken on the taxpayer's federal income tax return 
        under subsection (k) of Section 168 of the Internal 
        Revenue Code and for each applicable taxable year 
        thereafter, an amount equal to "x", where:
                (1) "y" equals the amount of the depreciation 
            deduction taken for the taxable year on the 
            taxpayer's federal income tax return on property 
            for which the bonus depreciation deduction was 
            taken in any year under subsection (k) of Section 
            168 of the Internal Revenue Code, but not 
            including the bonus depreciation deduction;
                (2) for taxable years ending on or before 
            December 31, 2005, "x" equals "y" multiplied by 30 
            and then divided by 70 (or "y" multiplied by 
            0.429); and
                (3) for taxable years ending after December 
            31, 2005:
                    (i) for property on which a bonus 
                depreciation deduction of 30% of the adjusted 
                basis was taken, "x" equals "y" multiplied by 
                30 and then divided by 70 (or "y" multiplied 
                by 0.429);
                    (ii) for property on which a bonus 
                depreciation deduction of 50% of the adjusted 
                basis was taken, "x" equals "y" multiplied by 
                1.0;
                    (iii) for property on which a bonus 
                depreciation deduction of 100% of the adjusted 
                basis was taken in a taxable year ending on or 
                after December 31, 2021, "x" equals the 
                depreciation deduction that would be allowed 
                on that property if the taxpayer had made the 
                election under Section 168(k)(7) of the 
                Internal Revenue Code to not claim bonus 
                depreciation on that property; and
                    (iv) for property on which a bonus 
                depreciation deduction of a percentage other 
                than 30%, 50% or 100% of the adjusted basis 
                was taken in a taxable year ending on or after 
                December 31, 2021, "x" equals "y" multiplied 
                by 100 times the percentage bonus depreciation 
                on the property (that is, 100(bonus%)) and 
                then divided by 100 times 1 minus the 
                percentage bonus depreciation on the property 
                (that is, 100(1-bonus%)). 
            The aggregate amount deducted under this 
        subparagraph in all taxable years for any one piece of 
        property may not exceed the amount of the bonus 
        depreciation deduction taken on that property on the 
        taxpayer's federal income tax return under subsection 
        (k) of Section 168 of the Internal Revenue Code. This 
        subparagraph (R) is exempt from the provisions of 
        Section 250;
            (S) If the taxpayer sells, transfers, abandons, or 
        otherwise disposes of property for which the taxpayer 
        was required in any taxable year to make an addition 
        modification under subparagraph (G-10), then an amount 
        equal to that addition modification.
            If the taxpayer continues to own property through 
        the last day of the last tax year for which a 
        subtraction is allowed with respect to that property 
        under subparagraph (R) and for which the taxpayer was 
        required in any taxable year to make an addition 
        modification under subparagraph (G-10), then an amount 
        equal to that addition modification. 
            The taxpayer is allowed to take the deduction 
        under this subparagraph only once with respect to any 
        one piece of property.
            This subparagraph (S) is exempt from the 
        provisions of Section 250;
            (T) The amount of (i) any interest income (net of 
        the deductions allocable thereto) taken into account 
        for the taxable year with respect to a transaction 
        with a taxpayer that is required to make an addition 
        modification with respect to such transaction under 
        Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
        the amount of such addition modification and (ii) any 
        income from intangible property (net of the deductions 
        allocable thereto) taken into account for the taxable 
        year with respect to a transaction with a taxpayer 
        that is required to make an addition modification with 
        respect to such transaction under Section 
        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
        203(d)(2)(D-8), but not to exceed the amount of such 
        addition modification. This subparagraph (T) is exempt 
        from the provisions of Section 250; 
            (U) An amount equal to the interest income taken 
        into account for the taxable year (net of the 
        deductions allocable thereto) with respect to 
        transactions with (i) a foreign person who would be a 
        member of the taxpayer's unitary business group but 
        for the fact the foreign person's business activity 
        outside the United States is 80% or more of that 
        person's total business activity and (ii) for taxable 
        years ending on or after December 31, 2008, to a person 
        who would be a member of the same unitary business 
        group but for the fact that the person is prohibited 
        under Section 1501(a)(27) from being included in the 
        unitary business group because he or she is ordinarily 
        required to apportion business income under different 
        subsections of Section 304, but not to exceed the 
        addition modification required to be made for the same 
        taxable year under Section 203(c)(2)(G-12) for 
        interest paid, accrued, or incurred, directly or 
        indirectly, to the same person. This subparagraph (U) 
        is exempt from the provisions of Section 250; 
            (V) An amount equal to the income from intangible 
        property taken into account for the taxable year (net 
        of the deductions allocable thereto) with respect to 
        transactions with (i) a foreign person who would be a 
        member of the taxpayer's unitary business group but 
        for the fact that the foreign person's business 
        activity outside the United States is 80% or more of 
        that person's total business activity and (ii) for 
        taxable years ending on or after December 31, 2008, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304, but 
        not to exceed the addition modification required to be 
        made for the same taxable year under Section 
        203(c)(2)(G-13) for intangible expenses and costs 
        paid, accrued, or incurred, directly or indirectly, to 
        the same foreign person. This subparagraph (V) is 
        exempt from the provisions of Section 250; 
            (W) in the case of an estate, an amount equal to 
        all amounts included in such total pursuant to the 
        provisions of Section 111 of the Internal Revenue Code 
        as a recovery of items previously deducted by the 
        decedent from adjusted gross income in the computation 
        of taxable income. This subparagraph (W) is exempt 
        from Section 250; 
            (X) an amount equal to the refund included in such 
        total of any tax deducted for federal income tax 
        purposes, to the extent that deduction was added back 
        under subparagraph (F). This subparagraph (X) is 
        exempt from the provisions of Section 250;
            (Y) For taxable years ending on or after December 
        31, 2011, in the case of a taxpayer who was required to 
        add back any insurance premiums under Section 
        203(c)(2)(G-14), such taxpayer may elect to subtract 
        that part of a reimbursement received from the 
        insurance company equal to the amount of the expense 
        or loss (including expenses incurred by the insurance 
        company) that would have been taken into account as a 
        deduction for federal income tax purposes if the 
        expense or loss had been uninsured. If a taxpayer 
        makes the election provided for by this subparagraph 
        (Y), the insurer to which the premiums were paid must 
        add back to income the amount subtracted by the 
        taxpayer pursuant to this subparagraph (Y). This 
        subparagraph (Y) is exempt from the provisions of 
        Section 250;
            (Z) For taxable years beginning after December 31, 
        2018 and before January 1, 2026, the amount of excess 
        business loss of the taxpayer disallowed as a 
        deduction by Section 461(l)(1)(B) of the Internal 
        Revenue Code; and 
            (AA) For taxable years beginning on or after 
        January 1, 2023, for any cannabis establishment 
        operating in this State and licensed under the 
        Cannabis Regulation and Tax Act or any cannabis 
        cultivation center or medical cannabis dispensing 
        organization operating in this State and licensed 
        under the Compassionate Use of Medical Cannabis 
        Program Act, an amount equal to the deductions that 
        were disallowed under Section 280E of the Internal 
        Revenue Code for the taxable year and that would not be 
        added back under this subsection. The provisions of 
        this subparagraph (AA) are exempt from the provisions 
        of Section 250. 
        (3) Limitation. The amount of any modification 
    otherwise required under this subsection shall, under 
    regulations prescribed by the Department, be adjusted by 
    any amounts included therein which were properly paid, 
    credited, or required to be distributed, or permanently 
    set aside for charitable purposes pursuant to Internal 
    Revenue Code Section 642(c) during the taxable year.
 
    (d) Partnerships.
        (1) In general. In the case of a partnership, base 
    income means an amount equal to the taxpayer's taxable 
    income for the taxable year as modified by paragraph (2).
        (2) Modifications. The taxable income referred to in 
    paragraph (1) shall be modified by adding thereto the sum 
    of the following amounts:
            (A) An amount equal to all amounts paid or accrued 
        to the taxpayer as interest or dividends during the 
        taxable year to the extent excluded from gross income 
        in the computation of taxable income;
            (B) An amount equal to the amount of tax imposed by 
        this Act to the extent deducted from gross income for 
        the taxable year;
            (C) The amount of deductions allowed to the 
        partnership pursuant to Section 707 (c) of the 
        Internal Revenue Code in calculating its taxable 
        income;
            (D) An amount equal to the amount of the capital 
        gain deduction allowable under the Internal Revenue 
        Code, to the extent deducted from gross income in the 
        computation of taxable income;
            (D-5) For taxable years 2001 and thereafter, an 
        amount equal to the bonus depreciation deduction taken 
        on the taxpayer's federal income tax return for the 
        taxable year under subsection (k) of Section 168 of 
        the Internal Revenue Code;
            (D-6) If the taxpayer sells, transfers, abandons, 
        or otherwise disposes of property for which the 
        taxpayer was required in any taxable year to make an 
        addition modification under subparagraph (D-5), then 
        an amount equal to the aggregate amount of the 
        deductions taken in all taxable years under 
        subparagraph (O) with respect to that property.
            If the taxpayer continues to own property through 
        the last day of the last tax year for which a 
        subtraction is allowed with respect to that property 
        under subparagraph (O) and for which the taxpayer was 
        allowed in any taxable year to make a subtraction 
        modification under subparagraph (O), then an amount 
        equal to that subtraction modification. 
            The taxpayer is required to make the addition 
        modification under this subparagraph only once with 
        respect to any one piece of property;
            (D-7) An amount equal to the amount otherwise 
        allowed as a deduction in computing base income for 
        interest paid, accrued, or incurred, directly or 
        indirectly, (i) for taxable years ending on or after 
        December 31, 2004, to a foreign person who would be a 
        member of the same unitary business group but for the 
        fact the foreign person's business activity outside 
        the United States is 80% or more of the foreign 
        person's total business activity and (ii) for taxable 
        years ending on or after December 31, 2008, to a person 
        who would be a member of the same unitary business 
        group but for the fact that the person is prohibited 
        under Section 1501(a)(27) from being included in the 
        unitary business group because he or she is ordinarily 
        required to apportion business income under different 
        subsections of Section 304. The addition modification 
        required by this subparagraph shall be reduced to the 
        extent that dividends were included in base income of 
        the unitary group for the same taxable year and 
        received by the taxpayer or by a member of the 
        taxpayer's unitary business group (including amounts 
        included in gross income pursuant to Sections 951 
        through 964 of the Internal Revenue Code and amounts 
        included in gross income under Section 78 of the 
        Internal Revenue Code) with respect to the stock of 
        the same person to whom the interest was paid, 
        accrued, or incurred. 
            This paragraph shall not apply to the following: 
                (i) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person who 
            is subject in a foreign country or state, other 
            than a state which requires mandatory unitary 
            reporting, to a tax on or measured by net income 
            with respect to such interest; or
                (ii) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person if 
            the taxpayer can establish, based on a 
            preponderance of the evidence, both of the 
            following:
                    (a) the person, during the same taxable 
                year, paid, accrued, or incurred, the interest 
                to a person that is not a related member, and
                    (b) the transaction giving rise to the 
                interest expense between the taxpayer and the 
                person did not have as a principal purpose the 
                avoidance of Illinois income tax, and is paid 
                pursuant to a contract or agreement that 
                reflects an arm's-length interest rate and 
                terms; or 
                (iii) the taxpayer can establish, based on 
            clear and convincing evidence, that the interest 
            paid, accrued, or incurred relates to a contract 
            or agreement entered into at arm's-length rates 
            and terms and the principal purpose for the 
            payment is not federal or Illinois tax avoidance; 
            or 
                (iv) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person if 
            the taxpayer establishes by clear and convincing 
            evidence that the adjustments are unreasonable; or 
            if the taxpayer and the Director agree in writing 
            to the application or use of an alternative method 
            of apportionment under Section 304(f). 
                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act 
            for any tax year beginning after the effective 
            date of this amendment provided such adjustment is 
            made pursuant to regulation adopted by the 
            Department and such regulations provide methods 
            and standards by which the Department will utilize 
            its authority under Section 404 of this Act; and 
            (D-8) An amount equal to the amount of intangible 
        expenses and costs otherwise allowed as a deduction in 
        computing base income, and that were paid, accrued, or 
        incurred, directly or indirectly, (i) for taxable 
        years ending on or after December 31, 2004, to a 
        foreign person who would be a member of the same 
        unitary business group but for the fact that the 
        foreign person's business activity outside the United 
        States is 80% or more of that person's total business 
        activity and (ii) for taxable years ending on or after 
        December 31, 2008, to a person who would be a member of 
        the same unitary business group but for the fact that 
        the person is prohibited under Section 1501(a)(27) 
        from being included in the unitary business group 
        because he or she is ordinarily required to apportion 
        business income under different subsections of Section 
        304. The addition modification required by this 
        subparagraph shall be reduced to the extent that 
        dividends were included in base income of the unitary 
        group for the same taxable year and received by the 
        taxpayer or by a member of the taxpayer's unitary 
        business group (including amounts included in gross 
        income pursuant to Sections 951 through 964 of the 
        Internal Revenue Code and amounts included in gross 
        income under Section 78 of the Internal Revenue Code) 
        with respect to the stock of the same person to whom 
        the intangible expenses and costs were directly or 
        indirectly paid, incurred or accrued. The preceding 
        sentence shall not apply to the extent that the same 
        dividends caused a reduction to the addition 
        modification required under Section 203(d)(2)(D-7) of 
        this Act. As used in this subparagraph, the term 
        "intangible expenses and costs" includes (1) expenses, 
        losses, and costs for, or related to, the direct or 
        indirect acquisition, use, maintenance or management, 
        ownership, sale, exchange, or any other disposition of 
        intangible property; (2) losses incurred, directly or 
        indirectly, from factoring transactions or discounting 
        transactions; (3) royalty, patent, technical, and 
        copyright fees; (4) licensing fees; and (5) other 
        similar expenses and costs. For purposes of this 
        subparagraph, "intangible property" includes patents, 
        patent applications, trade names, trademarks, service 
        marks, copyrights, mask works, trade secrets, and 
        similar types of intangible assets;
            This paragraph shall not apply to the following:
                (i) any item of intangible expenses or costs 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a person who 
            is subject in a foreign country or state, other 
            than a state which requires mandatory unitary 
            reporting, to a tax on or measured by net income 
            with respect to such item; or
                (ii) any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, if the taxpayer can establish, based 
            on a preponderance of the evidence, both of the 
            following:
                    (a) the person during the same taxable 
                year paid, accrued, or incurred, the 
                intangible expense or cost to a person that is 
                not a related member, and
                    (b) the transaction giving rise to the 
                intangible expense or cost between the 
                taxpayer and the person did not have as a 
                principal purpose the avoidance of Illinois 
                income tax, and is paid pursuant to a contract 
                or agreement that reflects arm's-length terms; 
                or
                (iii) any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a person if 
            the taxpayer establishes by clear and convincing 
            evidence, that the adjustments are unreasonable; 
            or if the taxpayer and the Director agree in 
            writing to the application or use of an 
            alternative method of apportionment under Section 
            304(f); 
                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act 
            for any tax year beginning after the effective 
            date of this amendment provided such adjustment is 
            made pursuant to regulation adopted by the 
            Department and such regulations provide methods 
            and standards by which the Department will utilize 
            its authority under Section 404 of this Act; 
            (D-9) For taxable years ending on or after 
        December 31, 2008, an amount equal to the amount of 
        insurance premium expenses and costs otherwise allowed 
        as a deduction in computing base income, and that were 
        paid, accrued, or incurred, directly or indirectly, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304. The 
        addition modification required by this subparagraph 
        shall be reduced to the extent that dividends were 
        included in base income of the unitary group for the 
        same taxable year and received by the taxpayer or by a 
        member of the taxpayer's unitary business group 
        (including amounts included in gross income under 
        Sections 951 through 964 of the Internal Revenue Code 
        and amounts included in gross income under Section 78 
        of the Internal Revenue Code) with respect to the 
        stock of the same person to whom the premiums and costs 
        were directly or indirectly paid, incurred, or 
        accrued. The preceding sentence does not apply to the 
        extent that the same dividends caused a reduction to 
        the addition modification required under Section 
        203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
            (D-10) An amount equal to the credit allowable to 
        the taxpayer under Section 218(a) of this Act, 
        determined without regard to Section 218(c) of this 
        Act;
            (D-11) For taxable years ending on or after 
        December 31, 2017, an amount equal to the deduction 
        allowed under Section 199 of the Internal Revenue Code 
        for the taxable year; 
    and by deducting from the total so obtained the following 
    amounts:
            (E) The valuation limitation amount;
            (F) An amount equal to the amount of any tax 
        imposed by this Act which was refunded to the taxpayer 
        and included in such total for the taxable year;
            (G) An amount equal to all amounts included in 
        taxable income as modified by subparagraphs (A), (B), 
        (C) and (D) which are exempt from taxation by this 
        State either by reason of its statutes or Constitution 
        or by reason of the Constitution, treaties or statutes 
        of the United States; provided that, in the case of any 
        statute of this State that exempts income derived from 
        bonds or other obligations from the tax imposed under 
        this Act, the amount exempted shall be the interest 
        net of bond premium amortization;
            (H) Any income of the partnership which 
        constitutes personal service income as defined in 
        Section 1348(b)(1) of the Internal Revenue Code (as in 
        effect December 31, 1981) or a reasonable allowance 
        for compensation paid or accrued for services rendered 
        by partners to the partnership, whichever is greater; 
        this subparagraph (H) is exempt from the provisions of 
        Section 250;
            (I) An amount equal to all amounts of income 
        distributable to an entity subject to the Personal 
        Property Tax Replacement Income Tax imposed by 
        subsections (c) and (d) of Section 201 of this Act 
        including amounts distributable to organizations 
        exempt from federal income tax by reason of Section 
        501(a) of the Internal Revenue Code; this subparagraph 
        (I) is exempt from the provisions of Section 250;
            (J) With the exception of any amounts subtracted 
        under subparagraph (G), an amount equal to the sum of 
        all amounts disallowed as deductions by (i) Sections 
        171(a)(2) and 265(a)(2) of the Internal Revenue Code, 
        and all amounts of expenses allocable to interest and 
        disallowed as deductions by Section 265(a)(1) of the 
        Internal Revenue Code; and (ii) for taxable years 
        ending on or after August 13, 1999, Sections 
        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the 
        Internal Revenue Code, plus, (iii) for taxable years 
        ending on or after December 31, 2011, Section 
        45G(e)(3) of the Internal Revenue Code and, for 
        taxable years ending on or after December 31, 2008, 
        any amount included in gross income under Section 87 
        of the Internal Revenue Code; the provisions of this 
        subparagraph are exempt from the provisions of Section 
        250;
            (K) An amount equal to those dividends included in 
        such total which were paid by a corporation which 
        conducts business operations in a River Edge 
        Redevelopment Zone or zones created under the River 
        Edge Redevelopment Zone Act and conducts substantially 
        all of its operations from a River Edge Redevelopment 
        Zone or zones. This subparagraph (K) is exempt from 
        the provisions of Section 250;
            (L) An amount equal to any contribution made to a 
        job training project established pursuant to the Real 
        Property Tax Increment Allocation Redevelopment Act;
            (M) An amount equal to those dividends included in 
        such total that were paid by a corporation that 
        conducts business operations in a federally designated 
        Foreign Trade Zone or Sub-Zone and that is designated 
        a High Impact Business located in Illinois; provided 
        that dividends eligible for the deduction provided in 
        subparagraph (K) of paragraph (2) of this subsection 
        shall not be eligible for the deduction provided under 
        this subparagraph (M);
            (N) An amount equal to the amount of the deduction 
        used to compute the federal income tax credit for 
        restoration of substantial amounts held under claim of 
        right for the taxable year pursuant to Section 1341 of 
        the Internal Revenue Code;
            (O) For taxable years 2001 and thereafter, for the 
        taxable year in which the bonus depreciation deduction 
        is taken on the taxpayer's federal income tax return 
        under subsection (k) of Section 168 of the Internal 
        Revenue Code and for each applicable taxable year 
        thereafter, an amount equal to "x", where:
                (1) "y" equals the amount of the depreciation 
            deduction taken for the taxable year on the 
            taxpayer's federal income tax return on property 
            for which the bonus depreciation deduction was 
            taken in any year under subsection (k) of Section 
            168 of the Internal Revenue Code, but not 
            including the bonus depreciation deduction;
                (2) for taxable years ending on or before 
            December 31, 2005, "x" equals "y" multiplied by 30 
            and then divided by 70 (or "y" multiplied by 
            0.429); and
                (3) for taxable years ending after December 
            31, 2005:
                    (i) for property on which a bonus 
                depreciation deduction of 30% of the adjusted 
                basis was taken, "x" equals "y" multiplied by 
                30 and then divided by 70 (or "y" multiplied 
                by 0.429);
                    (ii) for property on which a bonus 
                depreciation deduction of 50% of the adjusted 
                basis was taken, "x" equals "y" multiplied by 
                1.0;
                    (iii) for property on which a bonus 
                depreciation deduction of 100% of the adjusted 
                basis was taken in a taxable year ending on or 
                after December 31, 2021, "x" equals the 
                depreciation deduction that would be allowed 
                on that property if the taxpayer had made the 
                election under Section 168(k)(7) of the 
                Internal Revenue Code to not claim bonus 
                depreciation on that property; and
                    (iv) for property on which a bonus 
                depreciation deduction of a percentage other 
                than 30%, 50% or 100% of the adjusted basis 
                was taken in a taxable year ending on or after 
                December 31, 2021, "x" equals "y" multiplied 
                by 100 times the percentage bonus depreciation 
                on the property (that is, 100(bonus%)) and 
                then divided by 100 times 1 minus the 
                percentage bonus depreciation on the property 
                (that is, 100(1-bonus%)). 
            The aggregate amount deducted under this 
        subparagraph in all taxable years for any one piece of 
        property may not exceed the amount of the bonus 
        depreciation deduction taken on that property on the 
        taxpayer's federal income tax return under subsection 
        (k) of Section 168 of the Internal Revenue Code. This 
        subparagraph (O) is exempt from the provisions of 
        Section 250;
            (P) If the taxpayer sells, transfers, abandons, or 
        otherwise disposes of property for which the taxpayer 
        was required in any taxable year to make an addition 
        modification under subparagraph (D-5), then an amount 
        equal to that addition modification.
            If the taxpayer continues to own property through 
        the last day of the last tax year for which a 
        subtraction is allowed with respect to that property 
        under subparagraph (O) and for which the taxpayer was 
        required in any taxable year to make an addition 
        modification under subparagraph (D-5), then an amount 
        equal to that addition modification. 
            The taxpayer is allowed to take the deduction 
        under this subparagraph only once with respect to any 
        one piece of property.
            This subparagraph (P) is exempt from the 
        provisions of Section 250;
            (Q) The amount of (i) any interest income (net of 
        the deductions allocable thereto) taken into account 
        for the taxable year with respect to a transaction 
        with a taxpayer that is required to make an addition 
        modification with respect to such transaction under 
        Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
        the amount of such addition modification and (ii) any 
        income from intangible property (net of the deductions 
        allocable thereto) taken into account for the taxable 
        year with respect to a transaction with a taxpayer 
        that is required to make an addition modification with 
        respect to such transaction under Section 
        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
        203(d)(2)(D-8), but not to exceed the amount of such 
        addition modification. This subparagraph (Q) is exempt 
        from Section 250; 
            (R) An amount equal to the interest income taken 
        into account for the taxable year (net of the 
        deductions allocable thereto) with respect to 
        transactions with (i) a foreign person who would be a 
        member of the taxpayer's unitary business group but 
        for the fact that the foreign person's business 
        activity outside the United States is 80% or more of 
        that person's total business activity and (ii) for 
        taxable years ending on or after December 31, 2008, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304, but 
        not to exceed the addition modification required to be 
        made for the same taxable year under Section 
        203(d)(2)(D-7) for interest paid, accrued, or 
        incurred, directly or indirectly, to the same person. 
        This subparagraph (R) is exempt from Section 250; 
            (S) An amount equal to the income from intangible 
        property taken into account for the taxable year (net 
        of the deductions allocable thereto) with respect to 
        transactions with (i) a foreign person who would be a 
        member of the taxpayer's unitary business group but 
        for the fact that the foreign person's business 
        activity outside the United States is 80% or more of 
        that person's total business activity and (ii) for 
        taxable years ending on or after December 31, 2008, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304, but 
        not to exceed the addition modification required to be 
        made for the same taxable year under Section 
        203(d)(2)(D-8) for intangible expenses and costs paid, 
        accrued, or incurred, directly or indirectly, to the 
        same person. This subparagraph (S) is exempt from 
        Section 250; 
            (T) For taxable years ending on or after December 
        31, 2011, in the case of a taxpayer who was required to 
        add back any insurance premiums under Section 
        203(d)(2)(D-9), such taxpayer may elect to subtract 
        that part of a reimbursement received from the 
        insurance company equal to the amount of the expense 
        or loss (including expenses incurred by the insurance 
        company) that would have been taken into account as a 
        deduction for federal income tax purposes if the 
        expense or loss had been uninsured. If a taxpayer 
        makes the election provided for by this subparagraph 
        (T), the insurer to which the premiums were paid must 
        add back to income the amount subtracted by the 
        taxpayer pursuant to this subparagraph (T). This 
        subparagraph (T) is exempt from the provisions of 
        Section 250; and 
            (U) For taxable years beginning on or after 
        January 1, 2023, for any cannabis establishment 
        operating in this State and licensed under the 
        Cannabis Regulation and Tax Act or any cannabis 
        cultivation center or medical cannabis dispensing 
        organization operating in this State and licensed 
        under the Compassionate Use of Medical Cannabis 
        Program Act, an amount equal to the deductions that 
        were disallowed under Section 280E of the Internal 
        Revenue Code for the taxable year and that would not be 
        added back under this subsection. The provisions of 
        this subparagraph (U) are exempt from the provisions 
        of Section 250. 
 
    (e) Gross income; adjusted gross income; taxable income.
        (1) In general. Subject to the provisions of paragraph 
    (2) and subsection (b)(3), for purposes of this Section 
    and Section 803(e), a taxpayer's gross income, adjusted 
    gross income, or taxable income for the taxable year shall 
    mean the amount of gross income, adjusted gross income or 
    taxable income properly reportable for federal income tax 
    purposes for the taxable year under the provisions of the 
    Internal Revenue Code. Taxable income may be less than 
    zero. However, for taxable years ending on or after 
    December 31, 1986, net operating loss carryforwards from 
    taxable years ending prior to December 31, 1986, may not 
    exceed the sum of federal taxable income for the taxable 
    year before net operating loss deduction, plus the excess 
    of addition modifications over subtraction modifications 
    for the taxable year. For taxable years ending prior to 
    December 31, 1986, taxable income may never be an amount 
    in excess of the net operating loss for the taxable year as 
    defined in subsections (c) and (d) of Section 172 of the 
    Internal Revenue Code, provided that when taxable income 
    of a corporation (other than a Subchapter S corporation), 
    trust, or estate is less than zero and addition 
    modifications, other than those provided by subparagraph 
    (E) of paragraph (2) of subsection (b) for corporations or 
    subparagraph (E) of paragraph (2) of subsection (c) for 
    trusts and estates, exceed subtraction modifications, an 
    addition modification must be made under those 
    subparagraphs for any other taxable year to which the 
    taxable income less than zero (net operating loss) is 
    applied under Section 172 of the Internal Revenue Code or 
    under subparagraph (E) of paragraph (2) of this subsection 
    (e) applied in conjunction with Section 172 of the 
    Internal Revenue Code.
        (2) Special rule. For purposes of paragraph (1) of 
    this subsection, the taxable income properly reportable 
    for federal income tax purposes shall mean:
            (A) Certain life insurance companies. In the case 
        of a life insurance company subject to the tax imposed 
        by Section 801 of the Internal Revenue Code, life 
        insurance company taxable income, plus the amount of 
        distribution from pre-1984 policyholder surplus 
        accounts as calculated under Section 815a of the 
        Internal Revenue Code;
            (B) Certain other insurance companies. In the case 
        of mutual insurance companies subject to the tax 
        imposed by Section 831 of the Internal Revenue Code, 
        insurance company taxable income;
            (C) Regulated investment companies. In the case of 
        a regulated investment company subject to the tax 
        imposed by Section 852 of the Internal Revenue Code, 
        investment company taxable income;
            (D) Real estate investment trusts. In the case of 
        a real estate investment trust subject to the tax 
        imposed by Section 857 of the Internal Revenue Code, 
        real estate investment trust taxable income;
            (E) Consolidated corporations. In the case of a 
        corporation which is a member of an affiliated group 
        of corporations filing a consolidated income tax 
        return for the taxable year for federal income tax 
        purposes, taxable income determined as if such 
        corporation had filed a separate return for federal 
        income tax purposes for the taxable year and each 
        preceding taxable year for which it was a member of an 
        affiliated group. For purposes of this subparagraph, 
        the taxpayer's separate taxable income shall be 
        determined as if the election provided by Section 
        243(b)(2) of the Internal Revenue Code had been in 
        effect for all such years;
            (F) Cooperatives. In the case of a cooperative 
        corporation or association, the taxable income of such 
        organization determined in accordance with the 
        provisions of Section 1381 through 1388 of the 
        Internal Revenue Code, but without regard to the 
        prohibition against offsetting losses from patronage 
        activities against income from nonpatronage 
        activities; except that a cooperative corporation or 
        association may make an election to follow its federal 
        income tax treatment of patronage losses and 
        nonpatronage losses. In the event such election is 
        made, such losses shall be computed and carried over 
        in a manner consistent with subsection (a) of Section 
        207 of this Act and apportioned by the apportionment 
        factor reported by the cooperative on its Illinois 
        income tax return filed for the taxable year in which 
        the losses are incurred. The election shall be 
        effective for all taxable years with original returns 
        due on or after the date of the election. In addition, 
        the cooperative may file an amended return or returns, 
        as allowed under this Act, to provide that the 
        election shall be effective for losses incurred or 
        carried forward for taxable years occurring prior to 
        the date of the election. Once made, the election may 
        only be revoked upon approval of the Director. The 
        Department shall adopt rules setting forth 
        requirements for documenting the elections and any 
        resulting Illinois net loss and the standards to be 
        used by the Director in evaluating requests to revoke 
        elections. Public Act 96-932 is declaratory of 
        existing law; 
            (G) Subchapter S corporations. In the case of: (i) 
        a Subchapter S corporation for which there is in 
        effect an election for the taxable year under Section 
        1362 of the Internal Revenue Code, the taxable income 
        of such corporation determined in accordance with 
        Section 1363(b) of the Internal Revenue Code, except 
        that taxable income shall take into account those 
        items which are required by Section 1363(b)(1) of the 
        Internal Revenue Code to be separately stated; and 
        (ii) a Subchapter S corporation for which there is in 
        effect a federal election to opt out of the provisions 
        of the Subchapter S Revision Act of 1982 and have 
        applied instead the prior federal Subchapter S rules 
        as in effect on July 1, 1982, the taxable income of 
        such corporation determined in accordance with the 
        federal Subchapter S rules as in effect on July 1, 
        1982; and
            (H) Partnerships. In the case of a partnership, 
        taxable income determined in accordance with Section 
        703 of the Internal Revenue Code, except that taxable 
        income shall take into account those items which are 
        required by Section 703(a)(1) to be separately stated 
        but which would be taken into account by an individual 
        in calculating his taxable income.
        (3) Recapture of business expenses on disposition of 
    asset or business. Notwithstanding any other law to the 
    contrary, if in prior years income from an asset or 
    business has been classified as business income and in a 
    later year is demonstrated to be non-business income, then 
    all expenses, without limitation, deducted in such later 
    year and in the 2 immediately preceding taxable years 
    related to that asset or business that generated the 
    non-business income shall be added back and recaptured as 
    business income in the year of the disposition of the 
    asset or business. Such amount shall be apportioned to 
    Illinois using the greater of the apportionment fraction 
    computed for the business under Section 304 of this Act 
    for the taxable year or the average of the apportionment 
    fractions computed for the business under Section 304 of 
    this Act for the taxable year and for the 2 immediately 
    preceding taxable years. 
 
    (f) Valuation limitation amount.
        (1) In general. The valuation limitation amount 
    referred to in subsections (a)(2)(G), (c)(2)(I) and 
    (d)(2)(E) is an amount equal to:
            (A) The sum of the pre-August 1, 1969 appreciation 
        amounts (to the extent consisting of gain reportable 
        under the provisions of Section 1245 or 1250 of the 
        Internal Revenue Code) for all property in respect of 
        which such gain was reported for the taxable year; 
        plus
            (B) The lesser of (i) the sum of the pre-August 1, 
        1969 appreciation amounts (to the extent consisting of 
        capital gain) for all property in respect of which 
        such gain was reported for federal income tax purposes 
        for the taxable year, or (ii) the net capital gain for 
        the taxable year, reduced in either case by any amount 
        of such gain included in the amount determined under 
        subsection (a)(2)(F) or (c)(2)(H).
        (2) Pre-August 1, 1969 appreciation amount.
            (A) If the fair market value of property referred 
        to in paragraph (1) was readily ascertainable on 
        August 1, 1969, the pre-August 1, 1969 appreciation 
        amount for such property is the lesser of (i) the 
        excess of such fair market value over the taxpayer's 
        basis (for determining gain) for such property on that 
        date (determined under the Internal Revenue Code as in 
        effect on that date), or (ii) the total gain realized 
        and reportable for federal income tax purposes in 
        respect of the sale, exchange or other disposition of 
        such property.
            (B) If the fair market value of property referred 
        to in paragraph (1) was not readily ascertainable on 
        August 1, 1969, the pre-August 1, 1969 appreciation 
        amount for such property is that amount which bears 
        the same ratio to the total gain reported in respect of 
        the property for federal income tax purposes for the 
        taxable year, as the number of full calendar months in 
        that part of the taxpayer's holding period for the 
        property ending July 31, 1969 bears to the number of 
        full calendar months in the taxpayer's entire holding 
        period for the property.
            (C) The Department shall prescribe such 
        regulations as may be necessary to carry out the 
        purposes of this paragraph.
 
    (g) Double deductions. Unless specifically provided 
otherwise, nothing in this Section shall permit the same item 
to be deducted more than once.
 
    (h) Legislative intention. Except as expressly provided by 
this Section there shall be no modifications or limitations on 
the amounts of income, gain, loss or deduction taken into 
account in determining gross income, adjusted gross income or 
taxable income for federal income tax purposes for the taxable 
year, or in the amount of such items entering into the 
computation of base income and net income under this Act for 
such taxable year, whether in respect of property values as of 
August 1, 1969 or otherwise.
(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 
102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff. 
12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; revised 
9-26-23.)
 
ARTICLE 15.

 
    Section 15-5. The Property Tax Code is amended by changing 
Section 18-173 as follows:
 
    (35 ILCS 200/18-173)
    Sec. 18-173. Housing opportunity area abatement program. 
    (a) For the purpose of promoting access to housing near 
work and in order to promote economic diversity throughout 
Illinois and to alleviate the concentration of low-income 
households in areas of high poverty, a housing opportunity 
area tax abatement program is created.
    (b) As used in this Section:
    "Housing authority" means either a housing authority 
created under the Housing Authorities Act or other government 
agency that is authorized by the United States government 
under the United States Housing Act of 1937 to administer a 
housing choice voucher program, or the authorized agent of 
such a housing authority that is authorized to act upon that 
authority's behalf.
    "Housing choice voucher" means a tenant voucher issued by 
a housing authority under Section 8 of the United States 
Housing Act of 1937 and a tenant voucher converted to a 
project-based voucher by a housing authority.
    "Housing opportunity area" means a census tract where less 
than 10% of the residents live below the poverty level, as 
defined by the United States government and determined by the 
most recent United States census, that is located within a 
qualified township, except for census tracts located within 
any township that is located wholly within a municipality with 
1,000,000 or more inhabitants. A census tract that is located 
within a township that is located wholly within a municipality 
with 1,000,000 or more inhabitants is considered a housing 
opportunity area if less than 12% of the residents of the 
census tract live below the poverty level.
    "Housing opportunity unit" means a dwelling unit located 
in residential property that is located in a housing 
opportunity area, that is owned by the applicant, and that is 
rented to and occupied by a tenant who is participating in a 
housing choice voucher program administered by a housing 
authority as of January 1st of the tax year for which the 
application is made.
    "Qualified units" means the number of housing opportunity 
units located in the property with the limitation that no more 
than 2 units or 20% of the total units contained within the 
property, whichever is greater, may be considered qualified 
units. Further, no unit may be considered qualified unless the 
property in which it is contained is in substantial compliance 
with local building codes, and, moreover, no unit may be 
considered qualified unless it meets the United States 
Department of Housing and Urban Development's housing quality 
standards as of the most recent housing authority inspection.
    "Qualified township" means a township located within a 
county with 200,000 or more inhabitants whose tax capacity 
exceeds 80% of the average tax capacity of the county in which 
it is located, except for townships located within a county 
with 3,000,000 or more inhabitants, where a qualified township 
means a township whose tax capacity exceeds 115% of the 
average tax capacity of the county except for townships 
located wholly within a municipality with 1,000,000 or more 
inhabitants. All townships located wholly within a 
municipality with 1,000,000 or more inhabitants are considered 
qualified townships.
    "Tax capacity" means the equalized assessed value of all 
taxable real estate located within a township or county 
divided by the total population of that township or county.
    (c) The owner of property located within a housing 
opportunity area who has a housing choice voucher contract 
with a housing authority may apply for a housing opportunity 
area tax abatement by annually submitting an application to 
the housing authority that administers the housing choice 
voucher contract. The application must include the number of 
housing opportunity units as well as the total number of 
dwelling units contained within the property. The owner must, 
under oath, self-certify as to the total number of dwelling 
units in the property and must self-certify that the property 
is in substantial compliance with local building codes. The 
housing authority shall annually determine the number of 
qualified units located within each property for which an 
application is made.
    The housing authority shall establish rules and procedures 
governing the application processes and may charge an 
application fee. The county clerk may audit the applications 
to determine that the properties subject to the tax abatement 
meet the requirements of this Section. The determination of 
eligibility of a property for the housing opportunity area 
abatement shall be made annually; however, no property may 
receive an abatement for more than 10 tax years.
    (d) The housing authority shall determine housing 
opportunity areas within its service area and annually deliver 
to the county clerk, in a manner determined by the county 
clerk, a list of all properties containing qualified units 
within that service area by December 31st of the tax year for 
which the property is eligible for abatement; the list shall 
include the number of qualified units and the total number of 
dwelling units for each property.
    The county clerk shall deliver annually to a housing 
authority, upon that housing authority's request, the most 
recent available equalized assessed value for the county as a 
whole and for those taxing districts and townships so 
specified by the requesting housing authority.
    (e) The county clerk shall abate the tax attributed to a 
portion of the property determined to be eligible for a 
housing opportunity area abatement. The portion eligible for 
abatement shall be determined by reducing the equalized 
assessment value by a percentage calculated using the 
following formula: 19% of the equalized assessed value of the 
property multiplied by a fraction where the numerator is the 
number of qualified units and denominator is the total number 
of dwelling units located within the property.
    (f) Any municipality, except for municipalities with 
1,000,000 or more inhabitants, may annually petition the 
county clerk to be excluded from a housing opportunity area if 
it is able to demonstrate that more than 2.5% of the total 
residential units located within that municipality are 
occupied by tenants under the housing choice voucher program. 
Properties located within an excluded municipality shall not 
be eligible for the housing opportunity area abatement for the 
tax year in which the petition is made.
    (g) Applicability. This Section applies to tax years 2004 
through 2034 2024, unless extended by law.
(Source: P.A. 98-957, eff. 8-15-14.)
 
ARTICLE 20.

 
    Section 20-5. The Property Tax Code is amended by changing 
Section 21-355 as follows:
 
    (35 ILCS 200/21-355)
    Sec. 21-355. Amount of redemption. Any person desiring to 
redeem shall deposit an amount specified in this Section with 
the county clerk of the county in which the property is 
situated, in legal money of the United States, or by cashier's 
check, certified check, post office money order or money order 
issued by a financial institution insured by an agency or 
instrumentality of the United States, payable to the county 
clerk of the proper county. The deposit shall be deemed timely 
only if actually received in person at the county clerk's 
office prior to the close of business as defined in Section 
3-2007 of the Counties Code on or before the expiration of the 
period of redemption or by United States mail with a post 
office cancellation mark dated not less than one day prior to 
the expiration of the period of redemption. The deposit shall 
be in an amount equal to the total of the following:
        (a) the certificate amount, which shall include all 
    tax principal, special assessments, interest and penalties 
    paid by the tax purchaser together with costs and fees of 
    sale and fees paid under Sections 21-295 and 21-315 
    through 21-335, except for the nonrefundable $80 fee paid, 
    pursuant to Section 21-295, for each item purchased at the 
    tax sale;
        (b) the accrued penalty, computed through the date of 
    redemption as a percentage of the certificate amount, as 
    follows:
            (1) if the redemption occurs on or before the 
        expiration of 6 months from the date of sale, the 
        certificate amount times the penalty bid at sale;
            (2) if the redemption occurs after 6 months from 
        the date of sale, and on or before the expiration of 12 
        months from the date of sale, the certificate amount 
        times 2 times the penalty bid at sale;
            (3) if the redemption occurs after 12 months from 
        the date of sale and on or before the expiration of 18 
        months from the date of sale, the certificate amount 
        times 3 times the penalty bid at sale;
            (4) if the redemption occurs after 18 months from 
        the date of sale and on or before the expiration of 24 
        months from the date of sale, the certificate amount 
        times 4 times the penalty bid at sale;
            (5) if the redemption occurs after 24 months from 
        the date of sale and on or before the expiration of 30 
        months from the date of sale, the certificate amount 
        times 5 times the penalty bid at sale;
            (6) if the redemption occurs after 30 months from 
        the date of sale and on or before the expiration of 36 
        months from the date of sale, the certificate amount 
        times 6 times the penalty bid at sale.
        In the event that the property to be redeemed has been 
    purchased under Section 21-405 before January 1, 2024, the 
    penalty bid shall be 12% per penalty period as set forth in 
    subparagraphs (1) through (6) of this subsection (b). The 
    changes to this subdivision (b)(6) made by this amendatory 
    Act of the 91st General Assembly are not a new enactment, 
    but declaratory of existing law.
        For counties with fewer than 3,000,000 inhabitants, if 
    the property to be redeemed is property with respect to 
    which a tax lien or certificate is acquired after January 
    1, 2024 by the county as trustee pursuant to Section 
    21-90, the penalty bid at sale shall accrue according to 
    the penalty periods established in subparagraphs (1) 
    through (6) of this subsection (b). 
        For counties with more than 3,000,000 inhabitants, if 
    If the property to be redeemed is property with respect to 
    which a tax lien or certificate is acquired on or after 
    January 1, 2024 by the county as trustee pursuant to 
    Section 21-90, the penalty bid is 0.75% and shall accrue 
    monthly instead of according to the penalty periods 
    established in subparagraphs (1) through (6) of this 
    subsection (b). 
        (c) The total of all taxes, special assessments, 
    accrued interest on those taxes and special assessments 
    and costs charged in connection with the payment of those 
    taxes or special assessments, except for the nonrefundable 
    $80 fee paid, pursuant to Section 21-295, for each item 
    purchased at the tax sale, which have been paid by the tax 
    certificate holder on or after the date those taxes or 
    special assessments became delinquent together with 12% 
    penalty on each amount so paid for each year or portion 
    thereof intervening between the date of that payment and 
    the date of redemption. In counties with less than 
    3,000,000 inhabitants, however, a tax certificate holder 
    may not pay all or part of an installment of a subsequent 
    tax or special assessment for any year, nor shall any 
    tender of such a payment be accepted, until after the 
    second or final installment of the subsequent tax or 
    special assessment has become delinquent or until after 
    the holder of the certificate of purchase has filed a 
    petition for a tax deed under Section 22.30. The person 
    redeeming shall also pay the amount of interest charged on 
    the subsequent tax or special assessment and paid as a 
    penalty by the tax certificate holder. This amendatory Act 
    of 1995 applies to tax years beginning with the 1995 
    taxes, payable in 1996, and thereafter.
        (d) Any amount paid to redeem a forfeiture occurring 
    before January 1, 2024 but after the tax sale together 
    with 12% penalty thereon for each year or portion thereof 
    intervening between the date of the forfeiture redemption 
    and the date of redemption from the sale.
        (e) Any amount paid by the certificate holder for 
    redemption of a subsequently occurring tax sale, including 
    tax liens or certificates held by the county as trustee, 
    pursuant to Section 21-90.
        (f) All fees paid to the county clerk under Section 
    22-5.
        (g) All fees paid to the registrar of titles incident 
    to registering the tax certificate in compliance with the 
    Registered Titles (Torrens) Act.
        (h) All fees paid to the circuit clerk and the 
    sheriff, a licensed or registered private detective, or 
    the coroner in connection with the filing of the petition 
    for tax deed and service of notices under Sections 22-15 
    through 22-30 and 22-40 in addition to (1) a fee of $35 if 
    a petition for tax deed has been filed, which fee shall be 
    posted to the tax judgement, sale, redemption, and 
    forfeiture record, to be paid to the purchaser or his or 
    her assignee; (2) a fee of $4 if a notice under Section 
    22-5 has been filed, which fee shall be posted to the tax 
    judgment, sale, redemption, and forfeiture record, to be 
    paid to the purchaser or his or her assignee; (3) all costs 
    paid to record a lis pendens notice in connection with 
    filing a petition under this Code; and (4) if a petition 
    for tax deed has been filed, all fees up to $150 per 
    redemption paid to a registered or licensed title 
    insurance company or title insurance agent for a title 
    search to identify all owners, parties interested, and 
    occupants of the property, to be paid to the purchaser or 
    his or her assignee. The fees in (1) and (2) of this 
    paragraph (h) shall be exempt from the posting 
    requirements of Section 21-360. The costs incurred in 
    causing notices to be served by a licensed or registered 
    private detective under Section 22-15, may not exceed the 
    amount that the sheriff would be authorized by law to 
    charge if those notices had been served by the sheriff.
        (i) All fees paid for publication of notice of the tax 
    sale in accordance with Section 22-20.
        (j) All sums paid to any county, city, village or 
    incorporated town for reimbursement under Section 22-35.
        (k) All costs and expenses of receivership under 
    Section 21-410, to the extent that these costs and 
    expenses exceed any income from the property in question, 
    if the costs and expenditures have been approved by the 
    court appointing the receiver and a certified copy of the 
    order or approval is filed and posted by the certificate 
    holder with the county clerk. Only actual costs expended 
    may be posted on the tax judgment, sale, redemption and 
    forfeiture record.
(Source: P.A. 103-555, eff. 1-1-24.)
 
ARTICLE 25.

 
    Section 25-5. The Property Tax Code is amended by changing 
Section 20-15 as follows:
 
    (35 ILCS 200/20-15)
    Sec. 20-15. Information on bill or separate statement. 
There shall be printed on each bill, or on a separate slip 
which shall be mailed with the bill:
        (a) a statement itemizing the rate at which taxes have 
    been extended for each of the taxing districts in the 
    county in whose district the property is located, and in 
    those counties utilizing electronic data processing 
    equipment the dollar amount of tax due from the person 
    assessed allocable to each of those taxing districts, 
    including a separate statement of the dollar amount of tax 
    due which is allocable to a tax levied under the Illinois 
    Local Library Act or to any other tax levied by a 
    municipality or township for public library purposes,
        (b) a separate statement for each of the taxing 
    districts of the dollar amount of tax due which is 
    allocable to a tax levied under the Illinois Pension Code 
    or to any other tax levied by a municipality or township 
    for public pension or retirement purposes,
        (b-5) a list of each tax increment financing (TIF) 
    district in which the property is located and the dollar 
    amount of tax due that is allocable to the TIF district, 
        (c) the total tax rate,
        (d) the total amount of tax due, and
        (e) the amount by which the total tax and the tax 
    allocable to each taxing district differs from the 
    taxpayer's last prior tax bill.
    The county treasurer shall ensure that only those taxing 
districts in which a parcel of property is located shall be 
listed on the bill for that property.
    In all counties the statement shall also provide:
        (1) the property index number or other suitable 
    description,
        (2) the assessment of the property,
        (3) the statutory amount of each homestead exemption 
    applied to the property, 
        (4) the assessed value of the property after 
    application of all homestead exemptions, 
        (5) the equalization factors imposed by the county and 
    by the Department, and
        (6) the equalized assessment resulting from the 
    application of the equalization factors to the basic 
    assessment.
    In all counties which do not classify property for 
purposes of taxation, for property on which a single family 
residence is situated the statement shall also include a 
statement to reflect the fair cash value determined for the 
property. In all counties which classify property for purposes 
of taxation in accordance with Section 4 of Article IX of the 
Illinois Constitution, for parcels of residential property in 
the lowest assessment classification the statement shall also 
include a statement to reflect the fair cash value determined 
for the property.
    In all counties, the statement must include information 
that certain taxpayers may be eligible for tax exemptions, 
abatements, and other assistance programs and that, for more 
information, taxpayers should consult with the office of their 
township or county assessor and with the Illinois Department 
of Revenue. For bills mailed on or after January 1, 2026, the 
statement must include, in bold face type, a list of 
exemptions available to taxpayers and contact information for 
the chief county assessment officer. 
    In counties which use the estimated or accelerated billing 
methods, these statements shall only be provided with the 
final installment of taxes due. The provisions of this Section 
create a mandatory statutory duty. They are not merely 
directory or discretionary. The failure or neglect of the 
collector to mail the bill, or the failure of the taxpayer to 
receive the bill, shall not affect the validity of any tax, or 
the liability for the payment of any tax.
(Source: P.A. 100-621, eff. 7-20-18; 101-134, eff. 7-26-19.)
 
ARTICLE 30.

 
    Section 30-5. The Property Tax Code is amended by changing 
Section 30-25 as follows:
 
    (35 ILCS 200/30-25)
    Sec. 30-25. Distributions from account. 
    (a) At the direction of the corporate authorities of a 
taxing district, the treasurer of the taxing district shall 
disburse the amounts held in the tax reimbursement account. 
Unless the taxing district has divided the moneys as provided 
in subsection (b), disbursements shall be made to all of the 
owners of taxable homestead property within the taxing 
district. Each owner of taxable homestead property shall 
receive a proportionate share of the total disbursement based 
on the amount of ad valorem taxes on taxable homestead 
property paid by the owner to the taxing district under the 
most recent tax bill.
    (b) The corporate authorities of a taxing district may 
direct the treasurer to divide the moneys deposited into the 
account into 2 separate pools to be designated the homestead 
property pool and the commercial or industrial property pool. 
The amount to be deposited into each pool shall be determined 
by the corporate authorities of the taxing district, except 
that at least 50% of the moneys in the account shall be 
deposited into the homestead property pool. The treasurer 
shall disburse the amounts held in each pool in the tax 
reimbursement account at the direction of the corporate 
authorities. Disbursements from the homestead property pool 
shall be made to all of the owners of taxable homestead 
property within the taxing district. Each owner of taxable 
homestead property shall receive a proportionate share of the 
total disbursement from the pool based on the amount of ad 
valorem taxes on taxable homestead property paid by the owner 
to the taxing district under the most recent tax bill. 
Disbursements from the commercial or industrial property pool 
shall be made to all of the owners of taxable commercial or 
industrial property, except (i) those owners whose property is 
located within a tax increment financing district, (ii) those 
owners who received a tax incentive as a result of a tax 
incentivized development established by an intergovernmental 
agreement to which the taxing district is a party, or (iii) 
those owners whose property is classified as an apartment 
building. Each eligible owner of taxable commercial or 
industrial property shall receive a proportionate share of the 
total disbursement from the pool based on the amount of ad 
valorem taxes on taxable commercial or industrial property 
paid by the owner to the taxing district under the most recent 
tax bill.
    (c) In determining the proportionate share of each owner 
of homestead property, the numerator shall be the amount of 
taxes on homestead property paid by that owner to the taxing 
district under the most recent tax bill, and the denominator 
shall be the aggregate total of all taxes on homestead 
property paid by all owners to the taxing district under the 
most recent tax bills.
    (d) In determining the proportionate share of each owner 
of commercial or industrial property, the numerator shall be 
the amount of taxes on commercial or industrial property paid 
by that owner to the taxing district under the most recent tax 
bill, and the denominator shall be the aggregate total of all 
taxes on commercial or industrial property paid by all owners 
to the taxing district under the most recent tax bills less 
taxes paid on commercial or industrial property located in a 
tax increment financing district, taxes paid on commercial or 
industrial property for which the owner received a tax 
incentive as a result of a tax incentivized development 
established by an intergovernmental agreement to which the 
taxing district is a party, and taxes paid on an apartment 
building.
    (e) As used in this Section:
    "Qualified redevelopment costs" means costs advanced by a 
taxing district to a commercial or industrial property owner 
to promote economic development when, but for the advancement 
of the funds, the development would not be financially 
feasible. 
    "Tax incentivized development" means an economic 
development project established by intergovernmental agreement 
whereby a taxing district advances qualified redevelopment 
costs to a commercial or industrial property owner. 
(Source: P.A. 90-471, eff. 8-17-97.)
 
ARTICLE 35.

 
    Section 35-5. The Property Tax Code is amended by changing 
Sections 18-15 and 18-190 and by adding Section 18-17 as 
follows:
 
    (35 ILCS 200/18-15)
    Sec. 18-15. Filing of levies of taxing districts. 
    (a) Notwithstanding any other law to the contrary, all 
taxing districts, other than a school district subject to the 
authority of a Financial Oversight Panel pursuant to Article 
1H of the School Code, and except as provided in Section 18-17, 
shall annually certify to the county clerk, on or before the 
last Tuesday in December, the several amounts that they have 
levied.
    (a-5) Certification to the county clerk under subsection 
(a), including any supplemental or supportive documentation, 
may be submitted electronically. 
    (b) A school district subject to the authority of a 
Financial Oversight Panel pursuant to Article 1H of the School 
Code shall file a certificate of tax levy, necessary to effect 
the implementation of the approved financial plan and the 
approval of the Panel, as otherwise provided by this Section, 
except that the certificate must be certified to the county 
clerk on or before the first Tuesday in November.
    (c) If a school district as specified in subsection (b) of 
this Section fails to certify and return the certificate of 
tax levy, necessary to effect the implementation of the 
approved financial plan and the approval of the Financial 
Oversight Panel, to the county clerk on or before the first 
Tuesday in November, then the Financial Oversight Panel for 
the school district shall proceed to adopt, certify, and 
return a certificate of tax levy for the school district to the 
county clerk on or before the last Tuesday in December. 
(Source: P.A. 102-625, eff. 1-1-22.)
 
    (35 ILCS 200/18-17 new)
    Sec. 18-17. Supplemental levy for LaMoille Community Unit 
School District #303. Notwithstanding any other provision of 
law, LaMoille Community Unit School District #303 may, by 
ordinance adopted on or before June 30, 2024, amend or 
supplement its levy for the 2023 tax year for taxes scheduled 
to be collected in calendar year 2024. The District shall 
certify the amount of the amended or supplemental levy to the 
county clerk as soon as possible after the amended or 
supplemental levy is adopted, and the county clerk shall 
include those amounts in the extension of taxes for the 2023 
tax year. In no event shall the amended or supplemental levy 
adopted under this Section cause the District's property tax 
rate for the 2023 tax year to exceed the District's limiting 
rate under the Property Tax Extension Limitation Law or any 
other limitation on the extension of property taxes applicable 
to the District. This Section is repealed on January 1, 2025.
 
    (35 ILCS 200/18-190)
    Sec. 18-190. Direct referendum; new rate or increased 
limiting rate. 
    (a) If a new rate is authorized by statute to be imposed 
without referendum or is subject to a backdoor referendum, as 
defined in Section 28-2 of the Election Code, the governing 
body of the affected taxing district before levying the new 
rate shall submit the new rate to direct referendum under the 
provisions of this Section and of Article 28 of the Election 
Code. Notwithstanding any other provision of law, the levies 
authorized by Sections 21-110 and 21-110.1 of the Illinois 
Pension Code shall not be considered new rates; however, 
nothing in this amendatory Act of the 98th General Assembly 
authorizes a taxing district to increase its limiting rate or 
its aggregate extension without first obtaining referendum 
approval as provided in this Section. Notwithstanding any 
other provision of law, the levy authorized by Section 18-17 
is considered part of the annual corporate extension for the 
taxing district and is not considered a new rate. 
Notwithstanding the provisions, requirements, or limitations 
of any other law, any tax levied for the 2005 levy year and all 
subsequent levy years by any taxing district subject to this 
Law may be extended at a rate exceeding the rate established 
for that tax by referendum or statute, provided that the rate 
does not exceed the statutory ceiling above which the tax is 
not authorized to be further increased either by referendum or 
in any other manner. Notwithstanding the provisions, 
requirements, or limitations of any other law, all taxing 
districts subject to this Law shall follow the provisions of 
this Section whenever seeking referenda approval after March 
21, 2006 to (i) levy a new tax rate authorized by statute or 
(ii) increase the limiting rate applicable to the taxing 
district. All taxing districts subject to this Law are 
authorized to seek referendum approval of each proposition 
described and set forth in this Section.
    The proposition seeking to obtain referendum approval to 
levy a new tax rate as authorized in clause (i) shall be in 
substantially the following form:
        Shall ... (insert legal name, number, if any, and 
    county or counties of taxing district and geographic or 
    other common name by which a school or community college 
    district is known and referred to), Illinois, be 
    authorized to levy a new tax for ... purposes and have an 
    additional tax of ...% of the equalized assessed value of 
    the taxable property therein extended for such purposes?
The votes must be recorded as "Yes" or "No".
    The proposition seeking to obtain referendum approval to 
increase the limiting rate as authorized in clause (ii) shall 
be in substantially the following form:
        Shall the limiting rate under the Property Tax 
    Extension Limitation Law for ... (insert legal name, 
    number, if any, and county or counties of taxing district 
    and geographic or other common name by which a school or 
    community college district is known and referred to), 
    Illinois, be increased by an additional amount equal to 
    ...% above the limiting rate for the purpose of...(insert 
    purpose) for levy year ... (insert the most recent levy 
    year for which the limiting rate of the taxing district is 
    known at the time the submission of the proposition is 
    initiated by the taxing district) and be equal to ...% of 
    the equalized assessed value of the taxable property 
    therein for levy year(s) (insert each levy year for which 
    the increase will be applicable, which years must be 
    consecutive and may not exceed 4)?
    The votes must be recorded as "Yes" or "No".
    The ballot for any proposition submitted pursuant to this 
Section shall have printed thereon, but not as a part of the 
proposition submitted, only the following supplemental 
information (which shall be supplied to the election authority 
by the taxing district) in substantially the following form:
        (1) The approximate amount of taxes extendable at the 
    most recently extended limiting rate is $..., and the 
    approximate amount of taxes extendable if the proposition 
    is approved is $....
        (2) For the ... (insert the first levy year for which 
    the new rate or increased limiting rate will be 
    applicable) levy year the approximate amount of the 
    additional tax extendable against property containing a 
    single family residence and having a fair market value at 
    the time of the referendum of $100,000 is estimated to be 
    $....
        (3) Based upon an average annual percentage increase 
    (or decrease) in the market value of such property of %... 
    (insert percentage equal to the average annual percentage 
    increase or decrease for the prior 3 levy years, at the 
    time the submission of the proposition is initiated by the 
    taxing district, in the amount of (A) the equalized 
    assessed value of the taxable property in the taxing 
    district less (B) the new property included in the 
    equalized assessed value), the approximate amount of the 
    additional tax extendable against such property for the 
    ... levy year is estimated to be $... and for the ... levy 
    year is estimated to be $ ....
        (4) If the proposition is approved, the aggregate 
    extension for ... (insert each levy year for which the 
    increase will apply) will be determined by the limiting 
    rate set forth in the proposition, rather than the 
    otherwise applicable limiting rate calculated under the 
    provisions of the Property Tax Extension Limitation Law 
    (commonly known as the Property Tax Cap Law).
The approximate amount of taxes extendable shown in paragraph 
(1) shall be computed upon the last known equalized assessed 
value of taxable property in the taxing district (at the time 
the submission of the proposition is initiated by the taxing 
district). Paragraph (3) shall be included only if the 
increased limiting rate will be applicable for more than one 
levy year and shall list each levy year for which the increased 
limiting rate will be applicable. The additional tax shown for 
each levy year shall be the approximate dollar amount of the 
increase over the amount of the most recently completed 
extension at the time the submission of the proposition is 
initiated by the taxing district. The approximate amount of 
the additional taxes extendable shown in paragraphs (2) and 
(3) shall be calculated by multiplying $100,000 (the fair 
market value of the property without regard to any property 
tax exemptions) by (i) the percentage level of assessment 
prescribed for that property by statute, or by ordinance of 
the county board in counties that classify property for 
purposes of taxation in accordance with Section 4 of Article 
IX of the Illinois Constitution; (ii) the most recent final 
equalization factor certified to the county clerk by the 
Department of Revenue at the time the taxing district 
initiates the submission of the proposition to the electors; 
and (iii) either the new rate or the amount by which the 
limiting rate is to be increased. This amendatory Act of the 
97th General Assembly is intended to clarify the existing 
requirements of this Section, and shall not be construed to 
validate any prior non-compliant referendum language. 
Paragraph (4) shall be included if the proposition concerns a 
limiting rate increase but shall not be included if the 
proposition concerns a new rate. Any notice required to be 
published in connection with the submission of the proposition 
shall also contain this supplemental information and shall not 
contain any other supplemental information regarding the 
proposition. Any error, miscalculation, or inaccuracy in 
computing any amount set forth on the ballot and in the notice 
that is not deliberate shall not invalidate or affect the 
validity of any proposition approved. Notice of the referendum 
shall be published and posted as otherwise required by law, 
and the submission of the proposition shall be initiated as 
provided by law.
    If a majority of all ballots cast on the proposition are in 
favor of the proposition, the following provisions shall be 
applicable to the extension of taxes for the taxing district:
        (A) a new tax rate shall be first effective for the 
    levy year in which the new rate is approved;
        (B) if the proposition provides for a new tax rate, 
    the taxing district is authorized to levy a tax after the 
    canvass of the results of the referendum by the election 
    authority for the purposes for which the tax is 
    authorized;
        (C) a limiting rate increase shall be first effective 
    for the levy year in which the limiting rate increase is 
    approved, provided that the taxing district may elect to 
    have a limiting rate increase be effective for the levy 
    year prior to the levy year in which the limiting rate 
    increase is approved unless the extension of taxes for the 
    prior levy year occurs 30 days or less after the canvass of 
    the results of the referendum by the election authority in 
    any county in which the taxing district is located;
        (D) in order for the limiting rate increase to be 
    first effective for the levy year prior to the levy year of 
    the referendum, the taxing district must certify its 
    election to have the limiting rate increase be effective 
    for the prior levy year to the clerk of each county in 
    which the taxing district is located not more than 2 days 
    after the date the results of the referendum are canvassed 
    by the election authority; and
        (E) if the proposition provides for a limiting rate 
    increase, the increase may be effective regardless of 
    whether the proposition is approved before or after the 
    taxing district adopts or files its levy for any levy 
    year. 
    Rates required to extend taxes on levies subject to a 
backdoor referendum in each year there is a levy are not new 
rates or rate increases under this Section if a levy has been 
made for the fund in one or more of the preceding 3 levy years. 
Changes made by this amendatory Act of 1997 to this Section in 
reference to rates required to extend taxes on levies subject 
to a backdoor referendum in each year there is a levy are 
declarative of existing law and not a new enactment. 
    (b) Whenever other applicable law authorizes a taxing 
district subject to the limitation with respect to its 
aggregate extension provided for in this Law to issue bonds or 
other obligations either without referendum or subject to 
backdoor referendum, the taxing district may elect for each 
separate bond issuance to submit the question of the issuance 
of the bonds or obligations directly to the voters of the 
taxing district, and if the referendum passes the taxing 
district is not required to comply with any backdoor 
referendum procedures or requirements set forth in the other 
applicable law. The direct referendum shall be initiated by 
ordinance or resolution of the governing body of the taxing 
district, and the question shall be certified to the proper 
election authorities in accordance with the provisions of the 
Election Code.
(Source: P.A. 97-1087, eff. 8-24-12; 98-1088, eff. 8-26-14.)
 
    Section 35-10. The School Code is amended by changing 
Section 17-3.2 as follows:
 
    (105 ILCS 5/17-3.2)  (from Ch. 122, par. 17-3.2)
    Sec. 17-3.2. Additional or supplemental budget. 
    (a) Whenever the voters of a school district have voted in 
favor of an increase in the annual tax rate for educational or 
operations and maintenance purposes or both at an election 
held after the adoption of the annual school budget for any 
fiscal year, the board may adopt or pass during that fiscal 
year an additional or supplemental budget under the sole 
authority of this Section by a vote of a majority of the full 
membership of the board, any other provision of this Article 
to the contrary notwithstanding, in and by which such 
additional or supplemental budget the board shall appropriate 
such additional sums of money as it may find necessary to 
defray expenses and liabilities of that district to be 
incurred for educational or operations and maintenance 
purposes or both of the district during that fiscal year, but 
not in excess of the additional funds estimated to be 
available by virtue of such voted increase in the annual tax 
rate for educational or operations and maintenance purposes or 
both. Such additional or supplemental budget shall be regarded 
as an amendment of the annual school budget for the fiscal year 
in which it is adopted, and the board may levy the additional 
tax for educational or operations and maintenance purposes or 
both to equal the amount of the additional sums of money 
appropriated in that additional or supplemental budget, 
immediately.
    (b) Notwithstanding any other provision of law, LaMoille 
Community Unit School District #303 may adopt an additional or 
supplemental budget in connection with an amended or 
supplemental levy adopted under Section 18-17 of the Property 
Tax Code without receiving the approval of the voters as 
provided in subsection (a). This subsection (b) is inoperative 
on and after January 1, 2025. 
(Source: P.A. 86-1334.)
 
ARTICLE 40.

 
    Section 40-1. Short title. This Act may be cited as the 
Local Journalism Sustainability Act. References in this 
Article to "this Act" mean this Article.
 
    Section 40-5. Definitions. 
    "Award cycle" means the 4 reporting periods for which the 
employer is awarded a credit under Section 40-10.
    "Comparable rate" has the meaning given to that term by 
the Federal Communications Commission in its campaign 
advertising rate rules.
    "Department" means the Department of Commerce and Economic 
Opportunity.
    "Independently owned" means, as applied to a local news 
organization, that:
        (1) the local news organization is not a publicly 
    traded entity and no more than 5% of the beneficial 
    ownership of the local news organization is owned, 
    directly or indirectly, by a publicly traded entity; and
        (2) the local news organization is not a subsidiary.
    "Local news organization" means an entity that:
        (1) engages professionals to create, edit, produce, 
    and distribute original content concerning matters of 
    public interest through reporting activities, including 
    conducting interviews, observing current events, or 
    analyzing documents or other information;
        (2) has at least one employee who meets all of the 
    following criteria:
            (A) the employee is employed by the entity on a 
        full-time basis for at least 30 hours a week;
            (B) the employee's job duties for the entity 
        consist primarily of providing coverage of Illinois or 
        local Illinois community news as described in 
        paragraph (C);
            (C) the employee gathers, prepares, collects, 
        photographs, writes, edits, reports, or publishes 
        original local or State community news for 
        dissemination to the local or State community; and
            (D) the employee lives within 50 miles of the 
        coverage area;
        (3) in the case of a print publication, has published 
    at least one print publication per month over the previous 
    12 months and either (i) holds a valid United States 
    Postal Service periodical permit or (ii) has at least 25% 
    of its content dedicated to local news;
        (4) in the case of a digital-only entity, has 
    published one piece about the community per week over the 
    previous 12 months and has at least 33% of its digital 
    audience in Illinois, averaged over a 12-month period;
        (5) in the case of a hybrid entity that has both print 
    and digital outlets, meets the requirements in either 
    paragraph (3) or (4) of this definition;
        (6) has disclosed in its print publication or on its 
    website its beneficial ownership or, in the case of a 
    not-for-profit entity, its board of directors;
        (7) in the case of an entity that maintains tax status 
    under Section 501(c)(3) of the federal Internal Revenue 
    Code, has declared the coverage of local or State news as 
    the stated mission in its filings with the Internal 
    Revenue Service;
        (8) has not received any payments of more than 50% of 
    its gross receipts for the previous year from political 
    action committees or other entities described in Section 
    527 of the federal Internal Revenue Code or from an 
    organization that maintains Section 501(c)(4) or 501(c)(6) 
    status under the federal Internal Revenue Code, unless 
    those payments are for political advertising during the 
    lowest unit windows and using comparable rates; and
        (9) has not received more than 30% of its revenue from 
    the previous taxable year from political advertisements 
    during lowest unit windows.
    "Local news organization" does not include an organization 
that received more than $100,000 from organizations described 
in paragraph (8) during the taxable year or any preceding 
taxable year.
    "Lowest unit window" has the meaning given to that term by 
the Federal Communications Commission in its campaign 
advertising rate rules.
    "New journalism position" means an employment position 
that results in a net increase in qualified journalists 
employed by the local news organization from January 1 of the 
preceding calendar year compared to January 1 of the calendar 
year in which a credit under this Act is sought.
    "Private fund" means a corporation that:
        (1) would be considered an investment company under 
    Section 3 of the Investment Company Act of 1940, 15 U.S.C. 
    80a-3, but for the application of paragraph (1) or (7) of 
    subsection (c) of that Section;
        (2) is not a venture capital fund, as defined in 
    Section 275.203(l)-1 of Title 17 of the Code of Federal 
    Regulations, as in effect on the effective date of this 
    Act; and
        (3) is not an institution selected under Section 107 
    of the federal Community Development Banking and Financial 
    Institutions Act of 1994.
    "Qualified journalist" means a person who:
        (1) is employed for an average of at least 30 hours per 
    week; and 
        (2) is responsible for gathering, developing, 
    preparing, directing the recording of, producing, 
    collecting, photographing, recording, writing, editing, 
    reporting, designing, presenting, distributing, or 
    publishing original news or information that concerns 
    local matters of public interest.
    "Reporting period" means the quarter for which a return is 
required to be filed under Article 7 of the Illinois Income Tax 
Act.
 
    Section 40-10. Credit award. For reporting periods that 
begin on or after January 1, 2025 and before January 1, 2030, 
employers, including employers that maintain tax status under 
Section 501(c)(3) of the federal Internal Revenue Code, that 
are local news organizations and that are required to deduct 
and withhold taxes as provided in Article 7 of the Illinois 
Income Tax Act are eligible to receive a credit against 
payments due under Section 704A of the Illinois Income Tax 
Act. The credit shall be $15,000 per qualified journalist 
employed and paid by the employer during the 12-month period 
immediately preceding the date on which the employer applies 
for a credit under this Section. An additional credit of 
$10,000 shall be awarded against payments due under Section 
704A of the Illinois Income Tax Act for each qualified 
journalist who fills a new journalism position for the 
employer during the 12-month period immediately preceding the 
date on which the employer applies for a credit under this 
Section. No more than $150,000 in credits under this Act may be 
awarded to any one local news organization in a single 
calendar year. If the local news organization is not 
independently owned or lists a private fund among its 
beneficial ownership, no more than $250,000 in credits may be 
awarded in a single calendar year to all local news 
organizations that share the same ownership interest. The 
total amount of credits that may be awarded under this Act in 
any given calendar year may not exceed $5,000,000, of which no 
more than $4,000,000 may be awarded for the $15,000 credit 
that applies to qualified journalists, and no more than 
$1,000,000 may be awarded for the additional $10,000 credit 
that is awarded for new journalism positions. Credits under 
this Section shall be awarded by the Department on a 
first-come, first-served basis.
    The Department shall issue a credit certificate to each 
eligible local news organization. Upon issuance of the credit 
certificate, the Department shall inform the Department of 
Revenue, in the form and manner as agreed between the 
agencies, of the date the credit certificate was issued, the 
name and tax identification number of the recipient, the 
amount of the credit, and such other information as the 
Department of Revenue may require. The credit certificate 
shall be attached to the taxpayer's return.
    The credit shall be applied to the first reporting period 
after the credit certificate is issued and that begins on or 
after January 1, 2025. If the amount of credit exceeds the 
liability for the reporting period, the excess credit shall be 
refunded to the taxpayer.
 
    Section 40-15. Application for local journalism 
certificate. 
    (a) In order to qualify for a tax credit award under this 
Act, an applicant must apply with the Department, in the form 
and manner required by the Department, for each award cycle 
for which a credit under this Act is sought, providing 
information necessary to calculate the tax credit award and 
any additional information as reasonably required by the 
Department. A separate application shall be filed for each 
local news organization. The tax credit award shall be 
calculated based upon the filing by the applicant on forms 
prescribed by the Department. The Department shall cooperate 
with the Department of Revenue as needed in order to determine 
credit amount and eligibility.
     (b) Upon satisfactory review of the application, the 
Department shall issue a local journalism certificate stating 
the amount of the tax credit award to which the applicant is 
entitled for the credit period and shall contemporaneously 
notify the applicant and Department of Revenue upon issuance 
of the certificate.
 
    Section 40-20. Powers of the Department. The Department 
and the Department of Revenue may, in consultation, adopt any 
rules necessary to administer the provisions of this Act.
 
    Section 40-25. Program terms and conditions. Any 
documentary materials or data made available or received from 
an applicant by any agent or employee of the Department are 
confidential and are not public records to the extent that the 
materials or data consist of commercial or financial 
information regarding the operation of, or the production of, 
the applicant or recipient of any tax credit award under this 
Act.
 
    Section 40-900. The Illinois Income Tax Act is amended by 
changing Section 704A as follows:
 
    (35 ILCS 5/704A)
    Sec. 704A. Employer's return and payment of tax withheld.
    (a) In general, every employer who deducts and withholds 
or is required to deduct and withhold tax under this Act on or 
after January 1, 2008 shall make those payments and returns as 
provided in this Section.
    (b) Returns. Every employer shall, in the form and manner 
required by the Department, make returns with respect to taxes 
withheld or required to be withheld under this Article 7 for 
each quarter beginning on or after January 1, 2008, on or 
before the last day of the first month following the close of 
that quarter.
    (c) Payments. With respect to amounts withheld or required 
to be withheld on or after January 1, 2008:
        (1) Semi-weekly payments. For each calendar year, each 
    employer who withheld or was required to withhold more 
    than $12,000 during the one-year period ending on June 30 
    of the immediately preceding calendar year, payment must 
    be made:
            (A) on or before each Friday of the calendar year, 
        for taxes withheld or required to be withheld on the 
        immediately preceding Saturday, Sunday, Monday, or 
        Tuesday;
            (B) on or before each Wednesday of the calendar 
        year, for taxes withheld or required to be withheld on 
        the immediately preceding Wednesday, Thursday, or 
        Friday.
        Beginning with calendar year 2011, payments made under 
    this paragraph (1) of subsection (c) must be made by 
    electronic funds transfer. 
        (2) Semi-weekly payments. Any employer who withholds 
    or is required to withhold more than $12,000 in any 
    quarter of a calendar year is required to make payments on 
    the dates set forth under item (1) of this subsection (c) 
    for each remaining quarter of that calendar year and for 
    the subsequent calendar year. 
        (3) Monthly payments. Each employer, other than an 
    employer described in items (1) or (2) of this subsection, 
    shall pay to the Department, on or before the 15th day of 
    each month the taxes withheld or required to be withheld 
    during the immediately preceding month.
        (4) Payments with returns. Each employer shall pay to 
    the Department, on or before the due date for each return 
    required to be filed under this Section, any tax withheld 
    or required to be withheld during the period for which the 
    return is due and not previously paid to the Department.
    (d) Regulatory authority. The Department may, by rule:
        (1) Permit employers, in lieu of the requirements of 
    subsections (b) and (c), to file annual returns due on or 
    before January 31 of the year for taxes withheld or 
    required to be withheld during the previous calendar year 
    and, if the aggregate amounts required to be withheld by 
    the employer under this Article 7 (other than amounts 
    required to be withheld under Section 709.5) do not exceed 
    $1,000 for the previous calendar year, to pay the taxes 
    required to be shown on each such return no later than the 
    due date for such return.
        (2) Provide that any payment required to be made under 
    subsection (c)(1) or (c)(2) is deemed to be timely to the 
    extent paid by electronic funds transfer on or before the 
    due date for deposit of federal income taxes withheld 
    from, or federal employment taxes due with respect to, the 
    wages from which the Illinois taxes were withheld.
        (3) Designate one or more depositories to which 
    payment of taxes required to be withheld under this 
    Article 7 must be paid by some or all employers.
        (4) Increase the threshold dollar amounts at which 
    employers are required to make semi-weekly payments under 
    subsection (c)(1) or (c)(2).
    (e) Annual return and payment. Every employer who deducts 
and withholds or is required to deduct and withhold tax from a 
person engaged in domestic service employment, as that term is 
defined in Section 3510 of the Internal Revenue Code, may 
comply with the requirements of this Section with respect to 
such employees by filing an annual return and paying the taxes 
required to be deducted and withheld on or before the 15th day 
of the fourth month following the close of the employer's 
taxable year. The Department may allow the employer's return 
to be submitted with the employer's individual income tax 
return or to be submitted with a return due from the employer 
under Section 1400.2 of the Unemployment Insurance Act.
    (f) Magnetic media and electronic filing. With respect to 
taxes withheld in calendar years prior to 2017, any W-2 Form 
that, under the Internal Revenue Code and regulations 
promulgated thereunder, is required to be submitted to the 
Internal Revenue Service on magnetic media or electronically 
must also be submitted to the Department on magnetic media or 
electronically for Illinois purposes, if required by the 
Department.
    With respect to taxes withheld in 2017 and subsequent 
calendar years, the Department may, by rule, require that any 
return (including any amended return) under this Section and 
any W-2 Form that is required to be submitted to the Department 
must be submitted on magnetic media or electronically. 
    The due date for submitting W-2 Forms shall be as 
prescribed by the Department by rule. 
    (g) For amounts deducted or withheld after December 31, 
2009, a taxpayer who makes an election under subsection (f) of 
Section 5-15 of the Economic Development for a Growing Economy 
Tax Credit Act for a taxable year shall be allowed a credit 
against payments due under this Section for amounts withheld 
during the first calendar year beginning after the end of that 
taxable year equal to the amount of the credit for the 
incremental income tax attributable to full-time employees of 
the taxpayer awarded to the taxpayer by the Department of 
Commerce and Economic Opportunity under the Economic 
Development for a Growing Economy Tax Credit Act for the 
taxable year and credits not previously claimed and allowed to 
be carried forward under Section 211(4) of this Act as 
provided in subsection (f) of Section 5-15 of the Economic 
Development for a Growing Economy Tax Credit Act. The credit 
or credits may not reduce the taxpayer's obligation for any 
payment due under this Section to less than zero. If the amount 
of the credit or credits exceeds the total payments due under 
this Section with respect to amounts withheld during the 
calendar year, the excess may be carried forward and applied 
against the taxpayer's liability under this Section in the 
succeeding calendar years as allowed to be carried forward 
under paragraph (4) of Section 211 of this Act. The credit or 
credits shall be applied to the earliest year for which there 
is a tax liability. If there are credits from more than one 
taxable year that are available to offset a liability, the 
earlier credit shall be applied first. Each employer who 
deducts and withholds or is required to deduct and withhold 
tax under this Act and who retains income tax withholdings 
under subsection (f) of Section 5-15 of the Economic 
Development for a Growing Economy Tax Credit Act must make a 
return with respect to such taxes and retained amounts in the 
form and manner that the Department, by rule, requires and pay 
to the Department or to a depositary designated by the 
Department those withheld taxes not retained by the taxpayer. 
For purposes of this subsection (g), the term taxpayer shall 
include taxpayer and members of the taxpayer's unitary 
business group as defined under paragraph (27) of subsection 
(a) of Section 1501 of this Act. This Section is exempt from 
the provisions of Section 250 of this Act. No credit awarded 
under the Economic Development for a Growing Economy Tax 
Credit Act for agreements entered into on or after January 1, 
2015 may be credited against payments due under this Section.
    (g-1) For amounts deducted or withheld after December 31, 
2024, a taxpayer who makes an election under the Reimagining 
Energy and Vehicles in Illinois Act shall be allowed a credit 
against payments due under this Section for amounts withheld 
during the first quarterly reporting period beginning after 
the certificate is issued equal to the portion of the REV 
Illinois Credit attributable to the incremental income tax 
attributable to new employees and retained employees as 
certified by the Department of Commerce and Economic 
Opportunity pursuant to an agreement with the taxpayer under 
the Reimagining Energy and Vehicles in Illinois Act for the 
taxable year. The credit or credits may not reduce the 
taxpayer's obligation for any payment due under this Section 
to less than zero. If the amount of the credit or credits 
exceeds the total payments due under this Section with respect 
to amounts withheld during the quarterly reporting period, the 
excess may be carried forward and applied against the 
taxpayer's liability under this Section in the succeeding 
quarterly reporting period as allowed to be carried forward 
under paragraph (4) of Section 211 of this Act. The credit or 
credits shall be applied to the earliest quarterly reporting 
period for which there is a tax liability. If there are credits 
from more than one quarterly reporting period that are 
available to offset a liability, the earlier credit shall be 
applied first. Each employer who deducts and withholds or is 
required to deduct and withhold tax under this Act and who 
retains income tax withholdings this subsection must make a 
return with respect to such taxes and retained amounts in the 
form and manner that the Department, by rule, requires and pay 
to the Department or to a depositary designated by the 
Department those withheld taxes not retained by the taxpayer. 
For purposes of this subsection (g-1), the term taxpayer shall 
include taxpayer and members of the taxpayer's unitary 
business group as defined under paragraph (27) of subsection 
(a) of Section 1501 of this Act. This Section is exempt from 
the provisions of Section 250 of this Act. 
    (g-2) For amounts deducted or withheld after December 31, 
2024, a taxpayer who makes an election under the Manufacturing 
Illinois Chips for Real Opportunity (MICRO) Act shall be 
allowed a credit against payments due under this Section for 
amounts withheld during the first quarterly reporting period 
beginning after the certificate is issued equal to the portion 
of the MICRO Illinois Credit attributable to the incremental 
income tax attributable to new employees and retained 
employees as certified by the Department of Commerce and 
Economic Opportunity pursuant to an agreement with the 
taxpayer under the Manufacturing Illinois Chips for Real 
Opportunity (MICRO) Act for the taxable year. The credit or 
credits may not reduce the taxpayer's obligation for any 
payment due under this Section to less than zero. If the amount 
of the credit or credits exceeds the total payments due under 
this Section with respect to amounts withheld during the 
quarterly reporting period, the excess may be carried forward 
and applied against the taxpayer's liability under this 
Section in the succeeding quarterly reporting period as 
allowed to be carried forward under paragraph (4) of Section 
211 of this Act. The credit or credits shall be applied to the 
earliest quarterly reporting period for which there is a tax 
liability. If there are credits from more than one quarterly 
reporting period that are available to offset a liability, the 
earlier credit shall be applied first. Each employer who 
deducts and withholds or is required to deduct and withhold 
tax under this Act and who retains income tax withholdings 
this subsection must make a return with respect to such taxes 
and retained amounts in the form and manner that the 
Department, by rule, requires and pay to the Department or to a 
depositary designated by the Department those withheld taxes 
not retained by the taxpayer. For purposes of this subsection, 
the term taxpayer shall include taxpayer and members of the 
taxpayer's unitary business group as defined under paragraph 
(27) of subsection (a) of Section 1501 of this Act. This 
Section is exempt from the provisions of Section 250 of this 
Act.
    (h) An employer may claim a credit against payments due 
under this Section for amounts withheld during the first 
calendar year ending after the date on which a tax credit 
certificate was issued under Section 35 of the Small Business 
Job Creation Tax Credit Act. The credit shall be equal to the 
amount shown on the certificate, but may not reduce the 
taxpayer's obligation for any payment due under this Section 
to less than zero. If the amount of the credit exceeds the 
total payments due under this Section with respect to amounts 
withheld during the calendar year, the excess may be carried 
forward and applied against the taxpayer's liability under 
this Section in the 5 succeeding calendar years. The credit 
shall be applied to the earliest year for which there is a tax 
liability. If there are credits from more than one calendar 
year that are available to offset a liability, the earlier 
credit shall be applied first. This Section is exempt from the 
provisions of Section 250 of this Act. 
    (i) Each employer with 50 or fewer full-time equivalent 
employees during the reporting period may claim a credit 
against the payments due under this Section for each qualified 
employee in an amount equal to the maximum credit allowable. 
The credit may be taken against payments due for reporting 
periods that begin on or after January 1, 2020, and end on or 
before December 31, 2027. An employer may not claim a credit 
for an employee who has worked fewer than 90 consecutive days 
immediately preceding the reporting period; however, such 
credits may accrue during that 90-day period and be claimed 
against payments under this Section for future reporting 
periods after the employee has worked for the employer at 
least 90 consecutive days. In no event may the credit exceed 
the employer's liability for the reporting period. Each 
employer who deducts and withholds or is required to deduct 
and withhold tax under this Act and who retains income tax 
withholdings under this subsection must make a return with 
respect to such taxes and retained amounts in the form and 
manner that the Department, by rule, requires and pay to the 
Department or to a depositary designated by the Department 
those withheld taxes not retained by the employer. 
    For each reporting period, the employer may not claim a 
credit or credits for more employees than the number of 
employees making less than the minimum or reduced wage for the 
current calendar year during the last reporting period of the 
preceding calendar year. Notwithstanding any other provision 
of this subsection, an employer shall not be eligible for 
credits for a reporting period unless the average wage paid by 
the employer per employee for all employees making less than 
$55,000 during the reporting period is greater than the 
average wage paid by the employer per employee for all 
employees making less than $55,000 during the same reporting 
period of the prior calendar year. 
    For purposes of this subsection (i): 
    "Compensation paid in Illinois" has the meaning ascribed 
to that term under Section 304(a)(2)(B) of this Act.
    "Employer" and "employee" have the meaning ascribed to 
those terms in the Minimum Wage Law, except that "employee" 
also includes employees who work for an employer with fewer 
than 4 employees. Employers that operate more than one 
establishment pursuant to a franchise agreement or that 
constitute members of a unitary business group shall aggregate 
their employees for purposes of determining eligibility for 
the credit.
    "Full-time equivalent employees" means the ratio of the 
number of paid hours during the reporting period and the 
number of working hours in that period.
    "Maximum credit" means the percentage listed below of the 
difference between the amount of compensation paid in Illinois 
to employees who are paid not more than the required minimum 
wage reduced by the amount of compensation paid in Illinois to 
employees who were paid less than the current required minimum 
wage during the reporting period prior to each increase in the 
required minimum wage on January 1. If an employer pays an 
employee more than the required minimum wage and that employee 
previously earned less than the required minimum wage, the 
employer may include the portion that does not exceed the 
required minimum wage as compensation paid in Illinois to 
employees who are paid not more than the required minimum 
wage. 
        (1) 25% for reporting periods beginning on or after 
    January 1, 2020 and ending on or before December 31, 2020;
        (2) 21% for reporting periods beginning on or after 
    January 1, 2021 and ending on or before December 31, 2021;
        (3) 17% for reporting periods beginning on or after 
    January 1, 2022 and ending on or before December 31, 2022;
        (4) 13% for reporting periods beginning on or after 
    January 1, 2023 and ending on or before December 31, 2023;
        (5) 9% for reporting periods beginning on or after 
    January 1, 2024 and ending on or before December 31, 2024;
        (6) 5% for reporting periods beginning on or after 
    January 1, 2025 and ending on or before December 31, 2025.
    The amount computed under this subsection may continue to 
be claimed for reporting periods beginning on or after January 
1, 2026 and: 
        (A) ending on or before December 31, 2026 for 
    employers with more than 5 employees; or
        (B) ending on or before December 31, 2027 for 
    employers with no more than 5 employees. 
    "Qualified employee" means an employee who is paid not 
more than the required minimum wage and has an average wage 
paid per hour by the employer during the reporting period 
equal to or greater than his or her average wage paid per hour 
by the employer during each reporting period for the 
immediately preceding 12 months. A new qualified employee is 
deemed to have earned the required minimum wage in the 
preceding reporting period.
    "Reporting period" means the quarter for which a return is 
required to be filed under subsection (b) of this Section. 
    (j) For reporting periods beginning on or after January 1, 
2023, if a private employer grants all of its employees the 
option of taking a paid leave of absence of at least 30 days 
for the purpose of serving as an organ donor or bone marrow 
donor, then the private employer may take a credit against the 
payments due under this Section in an amount equal to the 
amount withheld under this Section with respect to wages paid 
while the employee is on organ donation leave, not to exceed 
$1,000 in withholdings for each employee who takes organ 
donation leave. To be eligible for the credit, such a leave of 
absence must be taken without loss of pay, vacation time, 
compensatory time, personal days, or sick time for at least 
the first 30 days of the leave of absence. The private employer 
shall adopt rules governing organ donation leave, including 
rules that (i) establish conditions and procedures for 
requesting and approving leave and (ii) require medical 
documentation of the proposed organ or bone marrow donation 
before leave is approved by the private employer. A private 
employer must provide, in the manner required by the 
Department, documentation from the employee's medical 
provider, which the private employer receives from the 
employee, that verifies the employee's organ donation. The 
private employer must also provide, in the manner required by 
the Department, documentation that shows that a qualifying 
organ donor leave policy was in place and offered to all 
qualifying employees at the time the leave was taken. For the 
private employer to receive the tax credit, the employee 
taking organ donor leave must allow for the applicable medical 
records to be disclosed to the Department. If the private 
employer cannot provide the required documentation to the 
Department, then the private employer is ineligible for the 
credit under this Section. A private employer must also 
provide, in the form required by the Department, any 
additional documentation or information required by the 
Department to administer the credit under this Section. The 
credit under this subsection (j) shall be taken within one 
year after the date upon which the organ donation leave 
begins. If the leave taken spans into a second tax year, the 
employer qualifies for the allowable credit in the later of 
the 2 years. If the amount of credit exceeds the tax liability 
for the year, the excess may be carried and applied to the tax 
liability for the 3 taxable years following the excess credit 
year. The tax credit shall be applied to the earliest year for 
which there is a tax liability. If there are credits for more 
than one year that are available to offset liability, the 
earlier credit shall be applied first. 
    Nothing in this subsection (j) prohibits a private 
employer from providing an unpaid leave of absence to its 
employees for the purpose of serving as an organ donor or bone 
marrow donor; however, if the employer's policy provides for 
fewer than 30 days of paid leave for organ or bone marrow 
donation, then the employer shall not be eligible for the 
credit under this Section. 
    As used in this subsection (j):
    "Organ" means any biological tissue of the human body that 
may be donated by a living donor, including, but not limited 
to, the kidney, liver, lung, pancreas, intestine, bone, skin, 
or any subpart of those organs. 
    "Organ donor" means a person from whose body an organ is 
taken to be transferred to the body of another person. 
    "Private employer" means a sole proprietorship, 
corporation, partnership, limited liability company, or other 
entity with one or more employees. "Private employer" does not 
include a municipality, county, State agency, or other public 
employer. 
    This subsection (j) is exempt from the provisions of 
Section 250 of this Act.
    (k) A taxpayer who is issued a certificate under the Local 
Journalism Sustainability Act for a taxable year shall be 
allowed a credit against payments due under this Section as 
provided in that Act. 
(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21; 
102-700, Article 30, Section 30-5, eff. 4-19-22; 102-700, 
Article 110, Section 110-905, eff. 4-19-22; 102-1125, eff. 
2-3-23.)
 
ARTICLE 45.

 
    Section 45-5. The Live Theater Production Tax Credit Act 
is amended by changing Sections 10-10, 10-20, and 10-40 as 
follows:
 
    (35 ILCS 17/10-10)
    Sec. 10-10. Definitions. As used in this Act:
    "Accredited theater production" means a for-profit live 
stage presentation in a qualified production facility, as 
defined in this Section, that is either (i) a pre-Broadway 
production or (ii) a long-run production for which the 
aggregate Illinois labor and marketing expenditures exceed 
$100,000. For credits awarded under this Act on or after July 
1, 2022 in State Fiscal Year 2023, "accredited theater 
production" also includes any commercial Broadway touring 
show. For credits awarded under this Act on or after July 1, 
2024, "accredited theater production" also includes non-profit 
theater productions. 
    "Commercial Broadway touring show" means a production that 
(i) is performed in a qualified production facility and plays 
in more than 2 other markets in North America outside of 
Illinois within 12 months of its Illinois presentation and 
(ii) has Illinois production spending of not less than 
$100,000, as shown on the applicant's application for the 
credit. 
    "Pre-Broadway production" means a live stage production 
that, (i) in its original or adaptive version, is performed in 
a qualified production facility with the goal of having a 
presentation scheduled for Broadway's Theater District in New 
York City within 12 months after its Illinois presentation and 
(ii) has Illinois production spending of not less than 
$100,000, as shown on the applicant's application for the 
credit.
    "Long-run production" means a live stage production that 
is performed in a qualified production facility for longer 
than 8 weeks, with at least 6 performances per week, and 
includes a production that spans the end of one tax year and 
the commencement of a new tax year that, in combination, meets 
the criteria set forth in this definition making it a long-run 
production eligible for a theater tax credit award in each tax 
year or portion thereof.
    "Non-profit theater production" means a live stage 
production that is at least 75 minutes in length with a written 
script that (i) is produced by a 501(c)3 non-profit registered 
in the State of Illinois for at least 5 years, (ii) has 
Illinois production spending of not less than $10,000, as 
shown on the applicant's application for the credit, and (iii) 
has a minimum annual operating budget of $25,000 or more, as 
shown on the applicant's application for the credit. 
    "Accredited theater production certificate" means a 
certificate issued by the Department certifying that the 
production is an accredited theater production that meets the 
guidelines of this Act.
    "Applicant" means a taxpayer that is a theater producer, 
owner, licensee, operator, or presenter that is presenting or 
has presented a live stage presentation located within the 
State of Illinois who:
        (1) owns or licenses the theatrical rights of the 
    stage presentation for the Illinois production period; or
        (2) has contracted or will contract directly with the 
    owner or licensee of the theatrical rights or a person 
    acting on behalf of the owner or licensee to provide live 
    performances of the production.
    An applicant that directly or indirectly owns, controls, 
or operates multiple qualified production facilities shall be 
presumed to be and considered for the purposes of this Act to 
be a single applicant; provided, however, that as to each of 
the applicant's qualified production facilities, the applicant 
shall be eligible to separately and contemporaneously (i) 
apply for and obtain accredited theater production 
certificates, (ii) stage accredited theater productions, and 
(iii) apply for and receive a tax credit award certificate for 
each of the applicant's accredited theater productions 
performed at each of the applicant's qualified production 
facilities.
    "Department" means the Department of Commerce and Economic 
Opportunity.
    "Director" means the Director of the Department.
    "Illinois labor expenditure" means gross salary or wages 
including, but not limited to, taxes, benefits, and any other 
consideration incurred or paid to non-talent employees of the 
applicant for services rendered to and on behalf of the 
accredited theater production. To qualify as an Illinois labor 
expenditure, the expenditure must be:
        (1) incurred or paid by the applicant on or after the 
    effective date of the Act for services related to any 
    portion of an accredited theater production from its 
    pre-production stages, including, but not limited to, the 
    writing of the script, casting, hiring of service 
    providers, purchases from vendors, marketing, advertising, 
    public relations, load in, rehearsals, performances, other 
    accredited theater production related activities, and load 
    out;
        (2) directly attributable to the accredited theater 
    production;
        (3) limited to the first $100,000 of wages incurred or 
    paid to each employee of an accredited theater production 
    in each tax year;
        (4) included in the federal income tax basis of the 
    property;
        (5) paid in the tax year for which the applicant is 
    claiming the tax credit award, or no later than 60 days 
    after the end of the tax year;
        (6) paid to persons residing in Illinois at the time 
    payments were made; and
        (7) reasonable in the circumstances.
    "Illinois production spending" means any and all expenses 
directly or indirectly incurred relating to an accredited 
theater production presented in any qualified production 
facility of the applicant, including, but not limited to, 
expenditures for:
        (1) national marketing, public relations, and the 
    creation and placement of print, electronic, television, 
    billboard, and other forms of advertising; and
        (2) the construction and fabrication of scenic 
    materials and elements; provided, however, that the 
    maximum amount of expenditures attributable to the 
    construction and fabrication of scenic materials and 
    elements eligible for a tax credit award shall not exceed 
    $500,000 per applicant per production in any single tax 
    year.
    "Qualified production facility" means a facility located 
in the State in which live theatrical productions are, or are 
intended to be, exclusively presented that contains at least 
one stage, a seating capacity of 1,200 or more seats or, if the 
live theater production is a non-profit theater production, a 
seating capacity of 50 or more seats, and dressing rooms, 
storage areas, and other ancillary amenities necessary for the 
accredited theater production.
    "Tax credit award" means the issuance to a taxpayer by the 
Department of a tax credit award in conformance with Sections 
10-40 and 10-45 of this Act.
    "Tax year" means a calendar year for the period January 1 
to and including December 31.
(Source: P.A. 102-1112, eff. 12-21-22.)
 
    (35 ILCS 17/10-20)
    Sec. 10-20. Tax credit award. Subject to the conditions 
set forth in this Act, an applicant is entitled to a tax credit 
award as approved by the Department for qualifying Illinois 
labor expenditures and Illinois production spending for each 
tax year in which the applicant is awarded an accredited 
theater production certificate issued by the Department. The 
amount of tax credits awarded pursuant to this Act shall not 
exceed $2,000,000 in any State fiscal year ending on or before 
June 30, 2022. The , except that the amount of tax credits 
awarded pursuant to this Act for the State fiscal year ending 
on June 30, 2023 or the State fiscal year ending on June 30, 
2024 shall not exceed $4,000,000. For the State fiscal year 
ending on June 30, 2023 and the State fiscal year ending on 
June 30, 2024, no more than $2,000,000 in credits may be 
awarded in either of those fiscal years to accredited theater 
productions that are not commercial Broadway touring shows, 
and no more than $2,000,000 in credits may be awarded in either 
of those fiscal years to commercial Broadway touring shows. 
For State fiscal years ending on or after June 30, 2025, the 
amount of tax credits awarded under this Act shall not exceed 
$6,000,000, with no more than $2,000,000 in credits awarded 
for long-run productions and pre-Broadway productions, no more 
than $2,000,000 in credits awarded for commercial Broadway 
touring shows, and no more than $2,000,000 in credits awarded 
for non-profit theater productions. In the case of credits 
awarded under this Act for non-profit theater productions, no 
more than $100,000 in credits may be awarded to any single 
non-profit theater production. Credits shall be awarded on a 
first-come, first-served basis. Notwithstanding the foregoing, 
if the amount of credits applied for in any fiscal year exceeds 
the amount authorized to be awarded under this Section, the 
excess credit amount shall be awarded in the next fiscal year 
in which credits remain available for award and shall be 
treated as having been applied for on the first day of that 
fiscal year. 
(Source: P.A. 102-700, eff. 4-19-22; 102-1112, eff. 12-21-22.)
 
    (35 ILCS 17/10-40)
    Sec. 10-40. Issuance of Tax Credit Award Certificate. 
    (a) In order to qualify for a tax credit award under this 
Act, an applicant must file an application for each accredited 
theater production at each of the applicant's qualified 
production facilities, on forms prescribed by the Department, 
providing information necessary to calculate the tax credit 
award and any additional information as reasonably required by 
the Department.
    (b) Upon satisfactory review of the application, the 
Department shall issue a tax credit award certificate stating 
the amount of the tax credit award to which the applicant is 
entitled for that tax year and shall contemporaneously notify 
the applicant and Illinois Department of Revenue in accordance 
with Section 222 of the Illinois Income Tax Act or, if the 
applicant is a nonprofit theater production, subsection (k) of 
Section 704A of the Illinois Income Tax Act, as applicable.
(Source: P.A. 97-636, eff. 6-1-12.)
 
    Section 45-10. The Illinois Income Tax Act is amended by 
changing Sections 222 and 704A as follows:
 
    (35 ILCS 5/222)
    Sec. 222. Live theater production credit. 
    (a) For tax years beginning on or after January 1, 2012 and 
beginning prior to January 1, 2027, a taxpayer who has 
received a tax credit award under the Live Theater Production 
Tax Credit Act for a long-run production, a pre-Broadway 
production, or a commercial Broadway touring show is entitled 
to a credit against the taxes imposed under subsections (a) 
and (b) of Section 201 of this Act in an amount determined 
under that Act by the Department of Commerce and Economic 
Opportunity.
    (b) For taxable years ending before December 31, 2023, if 
the taxpayer is a partnership, limited liability partnership, 
limited liability company, or Subchapter S corporation, the 
tax credit award is allowed to the partners, unit holders, or 
shareholders in accordance with the determination of income 
and distributive share of income under Sections 702 and 704 
and Subchapter S of the Internal Revenue Code. For taxable 
years ending on or after December 31, 2023, if the taxpayer is 
a partnership or Subchapter S corporation, then the provisions 
of Section 251 apply.
    (c) A sale, assignment, or transfer of the tax credit 
award may be made by the taxpayer earning the credit within one 
year after the credit is awarded in accordance with rules 
adopted by the Department of Commerce and Economic 
Opportunity. 
    (d) The Department of Revenue, in cooperation with the 
Department of Commerce and Economic Opportunity, shall adopt 
rules to enforce and administer the provisions of this 
Section. 
    (e) The tax credit award may not be carried back. If the 
amount of the credit exceeds the tax liability for the year, 
the excess may be carried forward and applied to the tax 
liability of the 5 tax years following the excess credit year. 
The tax credit award shall be applied to the earliest year for 
which there is a tax liability. If there are credits from more 
than one tax year that are available to offset liability, the 
earlier credit shall be applied first. In no event may a credit 
under this Section reduce the taxpayer's liability to less 
than zero. 
(Source: P.A. 102-16, eff. 6-17-21; 103-396, eff. 1-1-24.)
 
    (35 ILCS 5/704A)
    Sec. 704A. Employer's return and payment of tax withheld.
    (a) In general, every employer who deducts and withholds 
or is required to deduct and withhold tax under this Act on or 
after January 1, 2008 shall make those payments and returns as 
provided in this Section.
    (b) Returns. Every employer shall, in the form and manner 
required by the Department, make returns with respect to taxes 
withheld or required to be withheld under this Article 7 for 
each quarter beginning on or after January 1, 2008, on or 
before the last day of the first month following the close of 
that quarter.
    (c) Payments. With respect to amounts withheld or required 
to be withheld on or after January 1, 2008:
        (1) Semi-weekly payments. For each calendar year, each 
    employer who withheld or was required to withhold more 
    than $12,000 during the one-year period ending on June 30 
    of the immediately preceding calendar year, payment must 
    be made:
            (A) on or before each Friday of the calendar year, 
        for taxes withheld or required to be withheld on the 
        immediately preceding Saturday, Sunday, Monday, or 
        Tuesday;
            (B) on or before each Wednesday of the calendar 
        year, for taxes withheld or required to be withheld on 
        the immediately preceding Wednesday, Thursday, or 
        Friday.
        Beginning with calendar year 2011, payments made under 
    this paragraph (1) of subsection (c) must be made by 
    electronic funds transfer. 
        (2) Semi-weekly payments. Any employer who withholds 
    or is required to withhold more than $12,000 in any 
    quarter of a calendar year is required to make payments on 
    the dates set forth under item (1) of this subsection (c) 
    for each remaining quarter of that calendar year and for 
    the subsequent calendar year. 
        (3) Monthly payments. Each employer, other than an 
    employer described in items (1) or (2) of this subsection, 
    shall pay to the Department, on or before the 15th day of 
    each month the taxes withheld or required to be withheld 
    during the immediately preceding month.
        (4) Payments with returns. Each employer shall pay to 
    the Department, on or before the due date for each return 
    required to be filed under this Section, any tax withheld 
    or required to be withheld during the period for which the 
    return is due and not previously paid to the Department.
    (d) Regulatory authority. The Department may, by rule:
        (1) Permit employers, in lieu of the requirements of 
    subsections (b) and (c), to file annual returns due on or 
    before January 31 of the year for taxes withheld or 
    required to be withheld during the previous calendar year 
    and, if the aggregate amounts required to be withheld by 
    the employer under this Article 7 (other than amounts 
    required to be withheld under Section 709.5) do not exceed 
    $1,000 for the previous calendar year, to pay the taxes 
    required to be shown on each such return no later than the 
    due date for such return.
        (2) Provide that any payment required to be made under 
    subsection (c)(1) or (c)(2) is deemed to be timely to the 
    extent paid by electronic funds transfer on or before the 
    due date for deposit of federal income taxes withheld 
    from, or federal employment taxes due with respect to, the 
    wages from which the Illinois taxes were withheld.
        (3) Designate one or more depositories to which 
    payment of taxes required to be withheld under this 
    Article 7 must be paid by some or all employers.
        (4) Increase the threshold dollar amounts at which 
    employers are required to make semi-weekly payments under 
    subsection (c)(1) or (c)(2).
    (e) Annual return and payment. Every employer who deducts 
and withholds or is required to deduct and withhold tax from a 
person engaged in domestic service employment, as that term is 
defined in Section 3510 of the Internal Revenue Code, may 
comply with the requirements of this Section with respect to 
such employees by filing an annual return and paying the taxes 
required to be deducted and withheld on or before the 15th day 
of the fourth month following the close of the employer's 
taxable year. The Department may allow the employer's return 
to be submitted with the employer's individual income tax 
return or to be submitted with a return due from the employer 
under Section 1400.2 of the Unemployment Insurance Act.
    (f) Magnetic media and electronic filing. With respect to 
taxes withheld in calendar years prior to 2017, any W-2 Form 
that, under the Internal Revenue Code and regulations 
promulgated thereunder, is required to be submitted to the 
Internal Revenue Service on magnetic media or electronically 
must also be submitted to the Department on magnetic media or 
electronically for Illinois purposes, if required by the 
Department.
    With respect to taxes withheld in 2017 and subsequent 
calendar years, the Department may, by rule, require that any 
return (including any amended return) under this Section and 
any W-2 Form that is required to be submitted to the Department 
must be submitted on magnetic media or electronically. 
    The due date for submitting W-2 Forms shall be as 
prescribed by the Department by rule. 
    (g) For amounts deducted or withheld after December 31, 
2009, a taxpayer who makes an election under subsection (f) of 
Section 5-15 of the Economic Development for a Growing Economy 
Tax Credit Act for a taxable year shall be allowed a credit 
against payments due under this Section for amounts withheld 
during the first calendar year beginning after the end of that 
taxable year equal to the amount of the credit for the 
incremental income tax attributable to full-time employees of 
the taxpayer awarded to the taxpayer by the Department of 
Commerce and Economic Opportunity under the Economic 
Development for a Growing Economy Tax Credit Act for the 
taxable year and credits not previously claimed and allowed to 
be carried forward under Section 211(4) of this Act as 
provided in subsection (f) of Section 5-15 of the Economic 
Development for a Growing Economy Tax Credit Act. The credit 
or credits may not reduce the taxpayer's obligation for any 
payment due under this Section to less than zero. If the amount 
of the credit or credits exceeds the total payments due under 
this Section with respect to amounts withheld during the 
calendar year, the excess may be carried forward and applied 
against the taxpayer's liability under this Section in the 
succeeding calendar years as allowed to be carried forward 
under paragraph (4) of Section 211 of this Act. The credit or 
credits shall be applied to the earliest year for which there 
is a tax liability. If there are credits from more than one 
taxable year that are available to offset a liability, the 
earlier credit shall be applied first. Each employer who 
deducts and withholds or is required to deduct and withhold 
tax under this Act and who retains income tax withholdings 
under subsection (f) of Section 5-15 of the Economic 
Development for a Growing Economy Tax Credit Act must make a 
return with respect to such taxes and retained amounts in the 
form and manner that the Department, by rule, requires and pay 
to the Department or to a depositary designated by the 
Department those withheld taxes not retained by the taxpayer. 
For purposes of this subsection (g), the term taxpayer shall 
include taxpayer and members of the taxpayer's unitary 
business group as defined under paragraph (27) of subsection 
(a) of Section 1501 of this Act. This Section is exempt from 
the provisions of Section 250 of this Act. No credit awarded 
under the Economic Development for a Growing Economy Tax 
Credit Act for agreements entered into on or after January 1, 
2015 may be credited against payments due under this Section.
    (g-1) For amounts deducted or withheld after December 31, 
2024, a taxpayer who makes an election under the Reimagining 
Energy and Vehicles in Illinois Act shall be allowed a credit 
against payments due under this Section for amounts withheld 
during the first quarterly reporting period beginning after 
the certificate is issued equal to the portion of the REV 
Illinois Credit attributable to the incremental income tax 
attributable to new employees and retained employees as 
certified by the Department of Commerce and Economic 
Opportunity pursuant to an agreement with the taxpayer under 
the Reimagining Energy and Vehicles in Illinois Act for the 
taxable year. The credit or credits may not reduce the 
taxpayer's obligation for any payment due under this Section 
to less than zero. If the amount of the credit or credits 
exceeds the total payments due under this Section with respect 
to amounts withheld during the quarterly reporting period, the 
excess may be carried forward and applied against the 
taxpayer's liability under this Section in the succeeding 
quarterly reporting period as allowed to be carried forward 
under paragraph (4) of Section 211 of this Act. The credit or 
credits shall be applied to the earliest quarterly reporting 
period for which there is a tax liability. If there are credits 
from more than one quarterly reporting period that are 
available to offset a liability, the earlier credit shall be 
applied first. Each employer who deducts and withholds or is 
required to deduct and withhold tax under this Act and who 
retains income tax withholdings this subsection must make a 
return with respect to such taxes and retained amounts in the 
form and manner that the Department, by rule, requires and pay 
to the Department or to a depositary designated by the 
Department those withheld taxes not retained by the taxpayer. 
For purposes of this subsection (g-1), the term taxpayer shall 
include taxpayer and members of the taxpayer's unitary 
business group as defined under paragraph (27) of subsection 
(a) of Section 1501 of this Act. This Section is exempt from 
the provisions of Section 250 of this Act. 
    (g-2) For amounts deducted or withheld after December 31, 
2024, a taxpayer who makes an election under the Manufacturing 
Illinois Chips for Real Opportunity (MICRO) Act shall be 
allowed a credit against payments due under this Section for 
amounts withheld during the first quarterly reporting period 
beginning after the certificate is issued equal to the portion 
of the MICRO Illinois Credit attributable to the incremental 
income tax attributable to new employees and retained 
employees as certified by the Department of Commerce and 
Economic Opportunity pursuant to an agreement with the 
taxpayer under the Manufacturing Illinois Chips for Real 
Opportunity (MICRO) Act for the taxable year. The credit or 
credits may not reduce the taxpayer's obligation for any 
payment due under this Section to less than zero. If the amount 
of the credit or credits exceeds the total payments due under 
this Section with respect to amounts withheld during the 
quarterly reporting period, the excess may be carried forward 
and applied against the taxpayer's liability under this 
Section in the succeeding quarterly reporting period as 
allowed to be carried forward under paragraph (4) of Section 
211 of this Act. The credit or credits shall be applied to the 
earliest quarterly reporting period for which there is a tax 
liability. If there are credits from more than one quarterly 
reporting period that are available to offset a liability, the 
earlier credit shall be applied first. Each employer who 
deducts and withholds or is required to deduct and withhold 
tax under this Act and who retains income tax withholdings 
this subsection must make a return with respect to such taxes 
and retained amounts in the form and manner that the 
Department, by rule, requires and pay to the Department or to a 
depositary designated by the Department those withheld taxes 
not retained by the taxpayer. For purposes of this subsection, 
the term taxpayer shall include taxpayer and members of the 
taxpayer's unitary business group as defined under paragraph 
(27) of subsection (a) of Section 1501 of this Act. This 
Section is exempt from the provisions of Section 250 of this 
Act.
    (h) An employer may claim a credit against payments due 
under this Section for amounts withheld during the first 
calendar year ending after the date on which a tax credit 
certificate was issued under Section 35 of the Small Business 
Job Creation Tax Credit Act. The credit shall be equal to the 
amount shown on the certificate, but may not reduce the 
taxpayer's obligation for any payment due under this Section 
to less than zero. If the amount of the credit exceeds the 
total payments due under this Section with respect to amounts 
withheld during the calendar year, the excess may be carried 
forward and applied against the taxpayer's liability under 
this Section in the 5 succeeding calendar years. The credit 
shall be applied to the earliest year for which there is a tax 
liability. If there are credits from more than one calendar 
year that are available to offset a liability, the earlier 
credit shall be applied first. This Section is exempt from the 
provisions of Section 250 of this Act. 
    (i) Each employer with 50 or fewer full-time equivalent 
employees during the reporting period may claim a credit 
against the payments due under this Section for each qualified 
employee in an amount equal to the maximum credit allowable. 
The credit may be taken against payments due for reporting 
periods that begin on or after January 1, 2020, and end on or 
before December 31, 2027. An employer may not claim a credit 
for an employee who has worked fewer than 90 consecutive days 
immediately preceding the reporting period; however, such 
credits may accrue during that 90-day period and be claimed 
against payments under this Section for future reporting 
periods after the employee has worked for the employer at 
least 90 consecutive days. In no event may the credit exceed 
the employer's liability for the reporting period. Each 
employer who deducts and withholds or is required to deduct 
and withhold tax under this Act and who retains income tax 
withholdings under this subsection must make a return with 
respect to such taxes and retained amounts in the form and 
manner that the Department, by rule, requires and pay to the 
Department or to a depositary designated by the Department 
those withheld taxes not retained by the employer. 
    For each reporting period, the employer may not claim a 
credit or credits for more employees than the number of 
employees making less than the minimum or reduced wage for the 
current calendar year during the last reporting period of the 
preceding calendar year. Notwithstanding any other provision 
of this subsection, an employer shall not be eligible for 
credits for a reporting period unless the average wage paid by 
the employer per employee for all employees making less than 
$55,000 during the reporting period is greater than the 
average wage paid by the employer per employee for all 
employees making less than $55,000 during the same reporting 
period of the prior calendar year. 
    For purposes of this subsection (i): 
    "Compensation paid in Illinois" has the meaning ascribed 
to that term under Section 304(a)(2)(B) of this Act.
    "Employer" and "employee" have the meaning ascribed to 
those terms in the Minimum Wage Law, except that "employee" 
also includes employees who work for an employer with fewer 
than 4 employees. Employers that operate more than one 
establishment pursuant to a franchise agreement or that 
constitute members of a unitary business group shall aggregate 
their employees for purposes of determining eligibility for 
the credit.
    "Full-time equivalent employees" means the ratio of the 
number of paid hours during the reporting period and the 
number of working hours in that period.
    "Maximum credit" means the percentage listed below of the 
difference between the amount of compensation paid in Illinois 
to employees who are paid not more than the required minimum 
wage reduced by the amount of compensation paid in Illinois to 
employees who were paid less than the current required minimum 
wage during the reporting period prior to each increase in the 
required minimum wage on January 1. If an employer pays an 
employee more than the required minimum wage and that employee 
previously earned less than the required minimum wage, the 
employer may include the portion that does not exceed the 
required minimum wage as compensation paid in Illinois to 
employees who are paid not more than the required minimum 
wage. 
        (1) 25% for reporting periods beginning on or after 
    January 1, 2020 and ending on or before December 31, 2020;
        (2) 21% for reporting periods beginning on or after 
    January 1, 2021 and ending on or before December 31, 2021;
        (3) 17% for reporting periods beginning on or after 
    January 1, 2022 and ending on or before December 31, 2022;
        (4) 13% for reporting periods beginning on or after 
    January 1, 2023 and ending on or before December 31, 2023;
        (5) 9% for reporting periods beginning on or after 
    January 1, 2024 and ending on or before December 31, 2024;
        (6) 5% for reporting periods beginning on or after 
    January 1, 2025 and ending on or before December 31, 2025.
    The amount computed under this subsection may continue to 
be claimed for reporting periods beginning on or after January 
1, 2026 and: 
        (A) ending on or before December 31, 2026 for 
    employers with more than 5 employees; or
        (B) ending on or before December 31, 2027 for 
    employers with no more than 5 employees. 
    "Qualified employee" means an employee who is paid not 
more than the required minimum wage and has an average wage 
paid per hour by the employer during the reporting period 
equal to or greater than his or her average wage paid per hour 
by the employer during each reporting period for the 
immediately preceding 12 months. A new qualified employee is 
deemed to have earned the required minimum wage in the 
preceding reporting period.
    "Reporting period" means the quarter for which a return is 
required to be filed under subsection (b) of this Section. 
    (j) For reporting periods beginning on or after January 1, 
2023, if a private employer grants all of its employees the 
option of taking a paid leave of absence of at least 30 days 
for the purpose of serving as an organ donor or bone marrow 
donor, then the private employer may take a credit against the 
payments due under this Section in an amount equal to the 
amount withheld under this Section with respect to wages paid 
while the employee is on organ donation leave, not to exceed 
$1,000 in withholdings for each employee who takes organ 
donation leave. To be eligible for the credit, such a leave of 
absence must be taken without loss of pay, vacation time, 
compensatory time, personal days, or sick time for at least 
the first 30 days of the leave of absence. The private employer 
shall adopt rules governing organ donation leave, including 
rules that (i) establish conditions and procedures for 
requesting and approving leave and (ii) require medical 
documentation of the proposed organ or bone marrow donation 
before leave is approved by the private employer. A private 
employer must provide, in the manner required by the 
Department, documentation from the employee's medical 
provider, which the private employer receives from the 
employee, that verifies the employee's organ donation. The 
private employer must also provide, in the manner required by 
the Department, documentation that shows that a qualifying 
organ donor leave policy was in place and offered to all 
qualifying employees at the time the leave was taken. For the 
private employer to receive the tax credit, the employee 
taking organ donor leave must allow for the applicable medical 
records to be disclosed to the Department. If the private 
employer cannot provide the required documentation to the 
Department, then the private employer is ineligible for the 
credit under this Section. A private employer must also 
provide, in the form required by the Department, any 
additional documentation or information required by the 
Department to administer the credit under this Section. The 
credit under this subsection (j) shall be taken within one 
year after the date upon which the organ donation leave 
begins. If the leave taken spans into a second tax year, the 
employer qualifies for the allowable credit in the later of 
the 2 years. If the amount of credit exceeds the tax liability 
for the year, the excess may be carried and applied to the tax 
liability for the 3 taxable years following the excess credit 
year. The tax credit shall be applied to the earliest year for 
which there is a tax liability. If there are credits for more 
than one year that are available to offset liability, the 
earlier credit shall be applied first. 
    Nothing in this subsection (j) prohibits a private 
employer from providing an unpaid leave of absence to its 
employees for the purpose of serving as an organ donor or bone 
marrow donor; however, if the employer's policy provides for 
fewer than 30 days of paid leave for organ or bone marrow 
donation, then the employer shall not be eligible for the 
credit under this Section. 
    As used in this subsection (j):
    "Organ" means any biological tissue of the human body that 
may be donated by a living donor, including, but not limited 
to, the kidney, liver, lung, pancreas, intestine, bone, skin, 
or any subpart of those organs. 
    "Organ donor" means a person from whose body an organ is 
taken to be transferred to the body of another person. 
    "Private employer" means a sole proprietorship, 
corporation, partnership, limited liability company, or other 
entity with one or more employees. "Private employer" does not 
include a municipality, county, State agency, or other public 
employer. 
    This subsection (j) is exempt from the provisions of 
Section 250 of this Act.
    (k) For reporting periods beginning on or after January 1, 
2025 and before January 1, 2027, an employer may claim a credit 
against payments due under this Section for amounts withheld 
during the first reporting period to occur after the date on 
which a tax credit certificate is issued for a non-profit 
theater production under Section 10 of the Live Theater 
Production Tax Credit Act. The credit shall be equal to the 
amount shown on the certificate, but may not reduce the 
taxpayer's obligation for any payment due under this Article 
to less than zero. If the amount of the credit exceeds the 
total amount due under this Article with respect to amounts 
withheld during the first reporting period to occur after the 
date on which a tax credit certificate is issued, the excess 
may be carried forward and applied against the taxpayer's 
liability under this Section for reporting periods that occur 
in the 5 succeeding calendar years. The excess credit shall be 
applied to the earliest reporting period for which there is a 
payment due under this Article. If there are credits from more 
than one reporting period that are available to offset a 
liability, the earlier credit shall be applied first. The 
Department of Revenue, in cooperation with the Department of 
Commerce and Economic Opportunity, shall adopt rules to 
enforce and administer the provisions of this subsection. 
(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21; 
102-700, Article 30, Section 30-5, eff. 4-19-22; 102-700, 
Article 110, Section 110-905, eff. 4-19-22; 102-1125, eff. 
2-3-23.)
 
ARTICLE 50. 

 
    Section 50-1. Short title. This Act may be cited as the 
Music and Musicians Tax Credit and Jobs Act. References in 
this Article to "this Act" mean this Article.
 
    Section 50-5. Purpose. The State's economy depends heavily 
on music, professional musicians, music teachers, and 
educators. Illinois is a cultural crown jewel of the United 
States. Illinois and Chicago boast a robust history and 
community of creative artists, writers, musicians, architects, 
orchestras, live music and entertainment venues, civic operas, 
recording studios, and universities. The COVID-19 pandemic and 
the economic fallout that ensued brought on especially 
difficult circumstances for the live entertainment industry at 
large. Throughout the State, this has meant the closure of and 
overall decrease in culturally engaging aspects of Illinois 
cities from Cairo to Chicago.
    According to the Americans for the Arts Action Fund, arts 
and culture represent 3.1% of the State's gross domestic 
product and 190,078 jobs. In fact, in 2020, Illinois arts and 
culture was larger than the State's agriculture industry. In 
2015, nonprofit arts organizations in the State generated 
$4,000,000,000 in economic activity that supported 111,068 
jobs and generated $478,500,000 in State and local government 
revenue. In Chicago specifically, nonprofit arts groups 
generated $3,200,000,000 in total economic activity and 
$336,500,000 in State and local government revenue. Audiences 
exceeded 36,000,000 people. 
    Yet, during the COVID-19 pandemic, the arts suffered. As a 
result, Illinois arts and culture value added decreased by 9% 
between 2019 and 2020 and employment decreased by 12%. 
Ultimately, $3,200,000,000 and 26,644 jobs were lost. Even as 
live performances have resumed, audience sizes remain below 
pre-pandemic levels. Regional theaters, local orchestras, 
opera houses, and performing arts organizations are reporting 
persistent drops in attendance.
    It is the policy of this State to promote and encourage the 
training and hiring of Illinois residents who represent the 
diversity of the Illinois population through the creation and 
implementation of training, education, and recruitment 
programs organized in cooperation with Illinois colleges and 
universities, labor organizations, and the commercial 
for-profit music industry.
 
    Section 50-10. Definitions. 
    "Department" means the Department of Commerce and Economic 
Opportunity.
    "Expenditure in the State" means (i) an expenditure to 
acquire, from a source within the State, property that is 
subject to tax under the Use Tax Act, the Service Use Tax Act, 
the Service Occupation Tax Act, or the Retailers' Occupation 
Tax Act or (ii) an expenditure for compensation for services 
performed within the State that is subject to State income tax 
under the Illinois Income Tax Act.
    "Illinois labor expenditure" means gross salary or wages, 
including, but not limited to, taxes, benefits, and any other 
consideration incurred or paid to artist employees of the 
applicant for services rendered to and on behalf of the 
qualified music company, provided that the expenditure is:
        (1) incurred or paid by the applicant on or after the 
    effective date of this Act for services related to any 
    portion of a qualified music company from rehearsals, 
    performances, and any other qualified music company 
    related activities;
        (2) limited to the first $100,000 of wages incurred or 
    paid to each employee of a qualified music production in 
    each tax year;
        (3) paid in the tax year for which the applicant is 
    claiming the tax credit award;
        (4) paid to persons residing in Illinois at the time 
    payments were made; and
        (5) reasonable under the circumstances.
    "Qualified music company" means an entity that (i) is 
authorized to do business in Illinois, (ii) is engaged 
directly or indirectly in the production, distribution, or 
promotion of music, (iii) is certified by the Department as 
meeting the eligibility requirements of this Act, and (iv) has 
executed a contract with the Department providing the terms 
and conditions for its participation.
    "Qualified music company payroll" or "QMC payroll" means 
wages reported by the qualified music company in box 1 of each 
W-2 form prepared for an employee of the qualified music 
company who is an Illinois resident.
    "Resident copyright" means the copyright of a musical 
composition written by an Illinois resident or owned by an 
Illinois-domiciled music company, as evidenced by documents of 
ownership, including, but not limited to, registration with 
the United States Copyright Office.
    "Sound recording" means a recording of music, poetry, or a 
spoken-word performance made, in whole or in part, in 
Illinois. "Sound recording" does not include the audio 
portions of dialogue or words spoken and recorded as part of 
television news coverage or athletic events.
    "Sound recording production company" means a company 
engaged in the business of producing sound recordings. "Sound 
recording production company" does not include any person or 
company, or any company owned, affiliated, or controlled, in 
whole or in part, by any company or person, that is in default 
on a loan made by the State or a loan guaranteed by the State, 
nor which has ever declared bankruptcy under which an 
obligation of the company or person to pay or repay public 
funds or moneys was discharged as a part of the bankruptcy.
    "State-certified production" means a sound recording 
production, or a series of productions, including but not 
limited to master and demonstration recordings, occurring over 
the course of a 12-month period, and the base 
production-related investment that is approved by the 
Department within 180 days after receipt by the Department of 
a complete application for initial certification of a 
production. If the production is not approved within 180 days, 
the Department shall provide a written report to the Senate 
Executive Committee and the House Executive Committee that 
states the reason why the production has not been approved.
    "Tax credit award" means the issuance to a taxpayer by the 
Department of a tax credit award against the taxes imposed by 
subsections (a) and (b) of Section 201 of the Illinois Income 
Tax Act as provided in this Act.
 
    Section 50-15. Powers of the Department. The Department, 
in addition to those powers granted under the Civil 
Administrative Code of Illinois, is granted and has all the 
powers necessary or convenient to carry out and effectuate the 
purposes and provisions of this Act, including, but not 
limited to, the power and authority to:
        (1) adopt rules that are necessary and appropriate for 
    the administration of this Act; 
        (2) establish forms for applications, notifications, 
    contracts, or any other agreements with respect to tax 
    credits under this Act and to accept applications for tax 
    credits under this Act at any time during the year;
        (3) assist applicants for tax credits under this Act 
    to promote, foster, and support sound recording and live 
    theater development and production and its related job 
    creation or retention within the State;
        (4) gather information and conduct inquiries, as 
    provided in this Act, required for the Department to 
    comply with the provisions of this Act and, without 
    limitation, to obtain information with respect to 
    applicants for the purpose of making any designations or 
    certifications necessary or desirable to assist the 
    Department with any recommendation or guidance in the 
    furtherance of the purposes of this Act and relating to 
    applicants' participation in training, education, and 
    recruitment programs that are organized in cooperation 
    with Illinois colleges and universities or labor 
    organizations designed to promote and encourage the 
    training and hiring of Illinois residents who represent 
    the diversity of the Illinois population;
        (5) provide for sufficient personnel to permit 
    administrative, staffing, operating, and related support 
    required to adequately discharge the Department's duties 
    and responsibilities under this Act from funds as may be 
    appropriated by the General Assembly for the 
    administration of this Act; and
        (6) require that the applicant at all times keep 
    proper books and records of accounts relating to the tax 
    credit award, in accordance with generally accepted 
    accounting principles consistently applied, and make those 
    books and records available for reasonable Department 
    inspection and audit, upon reasonable written request by 
    the Department, during the applicant's normal business 
    hours. Any documents or data made available to the 
    Department or received by the Department from the 
    applicant by any agent, employee, officer, or service 
    provider shall be deemed confidential and shall not 
    constitute public records to the extent that the documents 
    or data consist of commercial or financial information 
    regarding the operation by the applicant of any theater or 
    any accredited theater production or any recipient of any 
    tax credit award under this Act.
 
    Section 50-20. Application for certification of qualified 
music company. Any applicant that operates a qualified music 
company located in the State or is proposing to operate a 
qualified music company in the State may apply to the 
Department to have the qualified music company certified by 
the Department as a qualified music company.
 
    Section 50-25. Review of applications for qualified music 
company certificates. 
     (a) The Department shall issue a qualified music company 
certificate to an applicant if it finds that a preponderance 
of the following conditions exists:
        (1) the applicant is engaged directly or indirectly in 
    the production, distribution, and promotion of music;
        (2) the applicant intends to make the expenditure in 
    the State required for certification of the qualified 
    music company;
        (3) the applicant's qualified music company is 
    economically sound and will benefit the people of the 
    State of Illinois by increasing opportunities for 
    employment and will strengthen the economy of Illinois;
        (4) the following requirements related to the 
    implementation of a diversity plan have been met:
            (A) the applicant has filed with the Department a 
        diversity plan outlining specific goals for hiring 
        Illinois labor expenditure eligible minority persons 
        and women, as defined in the Business Enterprise for 
        Minorities, Women, and Persons with Disabilities Act, 
        and for using vendors receiving certification under 
        the Business Enterprise for Minorities, Women, and 
        Persons with Disabilities Act; 
            (B) the Department has approved the plan as 
        meeting the requirements established by the Department 
        and verified that the applicant has met or made good 
        faith efforts in achieving those goals; and 
            (C) the Department has adopted any rules that are 
        necessary to ensure compliance with the provisions set 
        forth in this paragraph (4) and any rules that are 
        necessary to show that the applicant's plan reflects 
        the diversity of the population of this State;
        (5) the applicant's qualified music company 
    application indicates whether the applicant intends to 
    participate in training, education, and recruitment 
    programs that are organized in cooperation with Illinois 
    colleges and universities, labor organizations, and the 
    holders of qualified music company certificates and are 
    designed to promote and encourage the training and hiring 
    of Illinois residents who represent the diversity of 
    Illinois; and
        (6) the tax credit award will result in an overall 
    positive impact to the State, as determined by the 
    Department using the best available data.
    (b) If any of the provisions in this Section conflict with 
any existing collective bargaining agreements, the terms and 
conditions of those collective bargaining agreements shall 
control.
    (c) The Department shall act expeditiously regarding 
approval of applications for qualified music companies so as 
to accommodate the operations and needs of those companies.
 
    Section 50-30. Training programs for skills in critical 
demand. To accomplish the purposes of this Act, the Department 
may use the training programs provided under Section 605-800 
of the Department of Commerce and Economic Opportunity Law of 
the Civil Administrative Code of Illinois.
 
    Section 50-35. Issuance of tax credit award certificate.
    (a) In order to qualify for a tax credit award under this 
Act, an applicant must file an application for each qualified 
music company at each of the applicant's qualified facilities, 
on forms prescribed by the Department, providing information 
necessary to calculate the tax credit award and any additional 
information as reasonably required by the Department.
    (b) Upon satisfactory review of the application, the 
Department shall issue a tax credit award certificate stating 
the amount of the tax credit award to which the applicant is 
entitled for that tax year and shall contemporaneously notify 
the applicant and the Department of Revenue.
    (c) For tax years beginning on or after January 1, 2025, a 
taxpayer who has been awarded a tax credit under paragraph (b) 
of this Section is entitled to a credit against the taxes 
imposed under subsections (a) and (b) of Section 201 of the 
Illinois Income Tax Act.
 
    Section 50-40. Amount and payment of the tax credit award. 
    (a) For taxable years beginning on or after January 1, 
2025, the Department may award tax credit awards to qualified 
music companies. The award may not exceed 10% of the Illinois 
labor expenditures for the State-certified production if the 
QMC payroll of the qualified music company for the taxable 
year does not exceed $150,000 or 15% of the Illinois labor 
expenditures for the State-certified production if the QMC 
payroll of the qualified music company for the taxable year 
exceeds $150,000, plus all of the following:
        (1) an additional 15% of the Illinois labor 
    expenditures for the State-certified production generated 
    by the employment of Illinois residents in geographic 
    areas of high poverty or high unemployment in each tax 
    year, as determined by the Department; and
        (2) an additional 7% of the Illinois labor 
    expenditures for the State-certified production generated 
    by the employment of individuals who are employed at a 
    wage of no less than the general prevailing hourly rate as 
    paid for work of a similar character in the locality in 
    which the work is performed; and
        (3) an additional 7% of the Illinois labor 
    expenditures for the State-certified production incurred 
    by a qualified music company and spent on post-production 
    sound recording for television or film work completed in 
    Illinois.
    (b) To the extent that the base investment by a qualified 
music company is expended on a sound recording production of a 
resident copyright, the investor shall be allowed an 
additional 10% increase in the base investment rate.
    (c) The aggregate amount of credits certified for all 
investors pursuant to this Section during any calendar year 
shall not exceed $2,000,000. No more than $200,000 in tax 
credits may be granted per calendar year for any single 
qualified music company.
    (d) A business is eligible for participation in the 
program if the business meets all of the following criteria:
        (1) The business is engaged directly or indirectly in 
    the production, distribution, and promotion of music.
        (2) The business is approved by the Director of 
    Commerce and Economic Opportunity.
    (e) Upon approval of a tax credit award under this Act, the 
Department shall issue a tax credit certificate to the 
applicant.
 
    Section 50-45. Qualified music program evaluation and 
reports. 
    (a) The Department's qualified music program tax credit 
award evaluation must include:
        (1) an assessment of the effectiveness of the program 
    in creating and retaining new jobs in Illinois;
        (2) an assessment of the revenue impact of the 
    program;
        (3) in the discretion of the Department, a review of 
    the practices and experiences of other states or nations 
    with similar programs; and
        (4) an assessment of the overall success of the 
    program. 
The Department may make a recommendation to extend, modify, or 
    not extend the program based on the evaluation.
    (b) At the end of each fiscal quarter, the Department 
shall submit to the General Assembly a report that includes, 
without limitation:
        (1) an assessment of the economic impact of the 
    program, including the number of jobs created and 
    retained, and whether the job positions are entry level, 
    management, vendor, or production related;
        (2) the amount of qualified music company spending 
    brought to Illinois, including the amount of spending and 
    type of Illinois vendors hired in connection with a 
    qualified music company; and
        (3) a determination of whether those receiving 
    qualifying Illinois labor expenditure salaries or wages 
    reflect the geographic, racial and ethnic, gender, and 
    income level diversity of the State of Illinois.
    (c) At the end of each fiscal year, the Department shall 
submit to the General Assembly a report that includes, without 
limitation:
        (1) the identification of each vendor that provided 
    goods or services that were included in a qualified music 
    company's Illinois spending;
        (2) a statement of the amount paid to each identified 
    vendor by the qualified music program and whether the 
    vendor is a minority-owned or women-owned business as 
    defined in Section 2 of the Business Enterprise for 
    Minorities, Women, and Persons with Disabilities Act; and
        (3) a description of the steps taken by the Department 
    to encourage qualified music company to use vendors who 
    are minority-owned or women-owned businesses.
 
    Section 50-50. Program terms and conditions. Any 
documentary materials or data made available or received from 
an applicant by any agent or employee of the Department are 
confidential and are not public records to the extent that the 
materials or data consist of commercial or financial 
information regarding the operation of or the production of 
the applicant or recipient of any tax credit award under this 
Act.
 
ARTICLE 52. 

 
    Section 52-3. The Freedom of Information Act is amended by 
changing Section 7.5 as follows:
 
    (5 ILCS 140/7.5)
    (Text of Section before amendment by P.A. 103-472)
    Sec. 7.5. Statutory exemptions. To the extent provided for 
by the statutes referenced below, the following shall be 
exempt from inspection and copying:
        (a) All information determined to be confidential 
    under Section 4002 of the Technology Advancement and 
    Development Act.
        (b) Library circulation and order records identifying 
    library users with specific materials under the Library 
    Records Confidentiality Act.
        (c) Applications, related documents, and medical 
    records received by the Experimental Organ Transplantation 
    Procedures Board and any and all documents or other 
    records prepared by the Experimental Organ Transplantation 
    Procedures Board or its staff relating to applications it 
    has received.
        (d) Information and records held by the Department of 
    Public Health and its authorized representatives relating 
    to known or suspected cases of sexually transmissible 
    disease or any information the disclosure of which is 
    restricted under the Illinois Sexually Transmissible 
    Disease Control Act.
        (e) Information the disclosure of which is exempted 
    under Section 30 of the Radon Industry Licensing Act.
        (f) Firm performance evaluations under Section 55 of 
    the Architectural, Engineering, and Land Surveying 
    Qualifications Based Selection Act.
        (g) Information the disclosure of which is restricted 
    and exempted under Section 50 of the Illinois Prepaid 
    Tuition Act.
        (h) Information the disclosure of which is exempted 
    under the State Officials and Employees Ethics Act, and 
    records of any lawfully created State or local inspector 
    general's office that would be exempt if created or 
    obtained by an Executive Inspector General's office under 
    that Act.
        (i) Information contained in a local emergency energy 
    plan submitted to a municipality in accordance with a 
    local emergency energy plan ordinance that is adopted 
    under Section 11-21.5-5 of the Illinois Municipal Code.
        (j) Information and data concerning the distribution 
    of surcharge moneys collected and remitted by carriers 
    under the Emergency Telephone System Act.
        (k) Law enforcement officer identification information 
    or driver identification information compiled by a law 
    enforcement agency or the Department of Transportation 
    under Section 11-212 of the Illinois Vehicle Code.
        (l) Records and information provided to a residential 
    health care facility resident sexual assault and death 
    review team or the Executive Council under the Abuse 
    Prevention Review Team Act.
        (m) Information provided to the predatory lending 
    database created pursuant to Article 3 of the Residential 
    Real Property Disclosure Act, except to the extent 
    authorized under that Article.
        (n) Defense budgets and petitions for certification of 
    compensation and expenses for court appointed trial 
    counsel as provided under Sections 10 and 15 of the 
    Capital Crimes Litigation Act (repealed). This subsection 
    (n) shall apply until the conclusion of the trial of the 
    case, even if the prosecution chooses not to pursue the 
    death penalty prior to trial or sentencing.
        (o) Information that is prohibited from being 
    disclosed under Section 4 of the Illinois Health and 
    Hazardous Substances Registry Act.
        (p) Security portions of system safety program plans, 
    investigation reports, surveys, schedules, lists, data, or 
    information compiled, collected, or prepared by or for the 
    Department of Transportation under Sections 2705-300 and 
    2705-616 of the Department of Transportation Law of the 
    Civil Administrative Code of Illinois, the Regional 
    Transportation Authority under Section 2.11 of the 
    Regional Transportation Authority Act, or the St. Clair 
    County Transit District under the Bi-State Transit Safety 
    Act (repealed). 
        (q) Information prohibited from being disclosed by the 
    Personnel Record Review Act. 
        (r) Information prohibited from being disclosed by the 
    Illinois School Student Records Act. 
        (s) Information the disclosure of which is restricted 
    under Section 5-108 of the Public Utilities Act. 
        (t) (Blank). 
        (u) Records and information provided to an independent 
    team of experts under the Developmental Disability and 
    Mental Health Safety Act (also known as Brian's Law). 
        (v) Names and information of people who have applied 
    for or received Firearm Owner's Identification Cards under 
    the Firearm Owners Identification Card Act or applied for 
    or received a concealed carry license under the Firearm 
    Concealed Carry Act, unless otherwise authorized by the 
    Firearm Concealed Carry Act; and databases under the 
    Firearm Concealed Carry Act, records of the Concealed 
    Carry Licensing Review Board under the Firearm Concealed 
    Carry Act, and law enforcement agency objections under the 
    Firearm Concealed Carry Act. 
        (v-5) Records of the Firearm Owner's Identification 
    Card Review Board that are exempted from disclosure under 
    Section 10 of the Firearm Owners Identification Card Act.
        (w) Personally identifiable information which is 
    exempted from disclosure under subsection (g) of Section 
    19.1 of the Toll Highway Act.
        (x) Information which is exempted from disclosure 
    under Section 5-1014.3 of the Counties Code or Section 
    8-11-21 of the Illinois Municipal Code. 
        (y) Confidential information under the Adult 
    Protective Services Act and its predecessor enabling 
    statute, the Elder Abuse and Neglect Act, including 
    information about the identity and administrative finding 
    against any caregiver of a verified and substantiated 
    decision of abuse, neglect, or financial exploitation of 
    an eligible adult maintained in the Registry established 
    under Section 7.5 of the Adult Protective Services Act. 
        (z) Records and information provided to a fatality 
    review team or the Illinois Fatality Review Team Advisory 
    Council under Section 15 of the Adult Protective Services 
    Act. 
        (aa) Information which is exempted from disclosure 
    under Section 2.37 of the Wildlife Code. 
        (bb) Information which is or was prohibited from 
    disclosure by the Juvenile Court Act of 1987. 
        (cc) Recordings made under the Law Enforcement 
    Officer-Worn Body Camera Act, except to the extent 
    authorized under that Act.
        (dd) Information that is prohibited from being 
    disclosed under Section 45 of the Condominium and Common 
    Interest Community Ombudsperson Act. 
        (ee) Information that is exempted from disclosure 
    under Section 30.1 of the Pharmacy Practice Act. 
        (ff) Information that is exempted from disclosure 
    under the Revised Uniform Unclaimed Property Act. 
        (gg) Information that is prohibited from being 
    disclosed under Section 7-603.5 of the Illinois Vehicle 
    Code. 
        (hh) Records that are exempt from disclosure under 
    Section 1A-16.7 of the Election Code. 
        (ii) Information which is exempted from disclosure 
    under Section 2505-800 of the Department of Revenue Law of 
    the Civil Administrative Code of Illinois. 
        (jj) Information and reports that are required to be 
    submitted to the Department of Labor by registering day 
    and temporary labor service agencies but are exempt from 
    disclosure under subsection (a-1) of Section 45 of the Day 
    and Temporary Labor Services Act. 
        (kk) Information prohibited from disclosure under the 
    Seizure and Forfeiture Reporting Act. 
        (ll) Information the disclosure of which is restricted 
    and exempted under Section 5-30.8 of the Illinois Public 
    Aid Code. 
        (mm) Records that are exempt from disclosure under 
    Section 4.2 of the Crime Victims Compensation Act. 
        (nn) Information that is exempt from disclosure under 
    Section 70 of the Higher Education Student Assistance Act. 
        (oo) Communications, notes, records, and reports 
    arising out of a peer support counseling session 
    prohibited from disclosure under the First Responders 
    Suicide Prevention Act. 
        (pp) Names and all identifying information relating to 
    an employee of an emergency services provider or law 
    enforcement agency under the First Responders Suicide 
    Prevention Act. 
        (qq) Information and records held by the Department of 
    Public Health and its authorized representatives collected 
    under the Reproductive Health Act. 
        (rr) Information that is exempt from disclosure under 
    the Cannabis Regulation and Tax Act. 
        (ss) Data reported by an employer to the Department of 
    Human Rights pursuant to Section 2-108 of the Illinois 
    Human Rights Act.
        (tt) Recordings made under the Children's Advocacy 
    Center Act, except to the extent authorized under that 
    Act. 
        (uu) Information that is exempt from disclosure under 
    Section 50 of the Sexual Assault Evidence Submission Act. 
        (vv) Information that is exempt from disclosure under 
    subsections (f) and (j) of Section 5-36 of the Illinois 
    Public Aid Code. 
        (ww) Information that is exempt from disclosure under 
    Section 16.8 of the State Treasurer Act. 
        (xx) Information that is exempt from disclosure or 
    information that shall not be made public under the 
    Illinois Insurance Code. 
        (yy) Information prohibited from being disclosed under 
    the Illinois Educational Labor Relations Act.
        (zz) Information prohibited from being disclosed under 
    the Illinois Public Labor Relations Act. 
        (aaa) Information prohibited from being disclosed 
    under Section 1-167 of the Illinois Pension Code. 
        (bbb) Information that is prohibited from disclosure 
    by the Illinois Police Training Act and the Illinois State 
    Police Act. 
        (ccc) Records exempt from disclosure under Section 
    2605-304 of the Illinois State Police Law of the Civil 
    Administrative Code of Illinois. 
        (ddd) Information prohibited from being disclosed 
    under Section 35 of the Address Confidentiality for 
    Victims of Domestic Violence, Sexual Assault, Human 
    Trafficking, or Stalking Act. 
        (eee) Information prohibited from being disclosed 
    under subsection (b) of Section 75 of the Domestic 
    Violence Fatality Review Act. 
        (fff) Images from cameras under the Expressway Camera 
    Act. This subsection (fff) is inoperative on and after 
    July 1, 2025. 
        (ggg) Information prohibited from disclosure under 
    paragraph (3) of subsection (a) of Section 14 of the Nurse 
    Agency Licensing Act. 
        (hhh) Information submitted to the Illinois State 
    Police in an affidavit or application for an assault 
    weapon endorsement, assault weapon attachment endorsement, 
    .50 caliber rifle endorsement, or .50 caliber cartridge 
    endorsement under the Firearm Owners Identification Card 
    Act. 
        (iii) Data exempt from disclosure under Section 50 of 
    the School Safety Drill Act. 
        (jjj) (hhh) Information exempt from disclosure under 
    Section 30 of the Insurance Data Security Law. 
        (kkk) (iii) Confidential business information 
    prohibited from disclosure under Section 45 of the Paint 
    Stewardship Act. 
        (lll) (Reserved). 
        (mmm) (iii) Information prohibited from being 
    disclosed under subsection (e) of Section 1-129 of the 
    Illinois Power Agency Act. 
        (nnn) Materials received by the Department of Commerce 
    and Economic Opportunity that are confidential under the 
    Music and Musicians Tax Credit and Jobs Act. 
(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22; 
102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff. 
8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22; 
102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff. 
6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372, 
eff. 1-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23; 
revised 1-2-24.)
 
    (Text of Section after amendment by P.A. 103-472)
    Sec. 7.5. Statutory exemptions. To the extent provided for 
by the statutes referenced below, the following shall be 
exempt from inspection and copying:
        (a) All information determined to be confidential 
    under Section 4002 of the Technology Advancement and 
    Development Act.
        (b) Library circulation and order records identifying 
    library users with specific materials under the Library 
    Records Confidentiality Act.
        (c) Applications, related documents, and medical 
    records received by the Experimental Organ Transplantation 
    Procedures Board and any and all documents or other 
    records prepared by the Experimental Organ Transplantation 
    Procedures Board or its staff relating to applications it 
    has received.
        (d) Information and records held by the Department of 
    Public Health and its authorized representatives relating 
    to known or suspected cases of sexually transmissible 
    disease or any information the disclosure of which is 
    restricted under the Illinois Sexually Transmissible 
    Disease Control Act.
        (e) Information the disclosure of which is exempted 
    under Section 30 of the Radon Industry Licensing Act.
        (f) Firm performance evaluations under Section 55 of 
    the Architectural, Engineering, and Land Surveying 
    Qualifications Based Selection Act.
        (g) Information the disclosure of which is restricted 
    and exempted under Section 50 of the Illinois Prepaid 
    Tuition Act.
        (h) Information the disclosure of which is exempted 
    under the State Officials and Employees Ethics Act, and 
    records of any lawfully created State or local inspector 
    general's office that would be exempt if created or 
    obtained by an Executive Inspector General's office under 
    that Act.
        (i) Information contained in a local emergency energy 
    plan submitted to a municipality in accordance with a 
    local emergency energy plan ordinance that is adopted 
    under Section 11-21.5-5 of the Illinois Municipal Code.
        (j) Information and data concerning the distribution 
    of surcharge moneys collected and remitted by carriers 
    under the Emergency Telephone System Act.
        (k) Law enforcement officer identification information 
    or driver identification information compiled by a law 
    enforcement agency or the Department of Transportation 
    under Section 11-212 of the Illinois Vehicle Code.
        (l) Records and information provided to a residential 
    health care facility resident sexual assault and death 
    review team or the Executive Council under the Abuse 
    Prevention Review Team Act.
        (m) Information provided to the predatory lending 
    database created pursuant to Article 3 of the Residential 
    Real Property Disclosure Act, except to the extent 
    authorized under that Article.
        (n) Defense budgets and petitions for certification of 
    compensation and expenses for court appointed trial 
    counsel as provided under Sections 10 and 15 of the 
    Capital Crimes Litigation Act (repealed). This subsection 
    (n) shall apply until the conclusion of the trial of the 
    case, even if the prosecution chooses not to pursue the 
    death penalty prior to trial or sentencing.
        (o) Information that is prohibited from being 
    disclosed under Section 4 of the Illinois Health and 
    Hazardous Substances Registry Act.
        (p) Security portions of system safety program plans, 
    investigation reports, surveys, schedules, lists, data, or 
    information compiled, collected, or prepared by or for the 
    Department of Transportation under Sections 2705-300 and 
    2705-616 of the Department of Transportation Law of the 
    Civil Administrative Code of Illinois, the Regional 
    Transportation Authority under Section 2.11 of the 
    Regional Transportation Authority Act, or the St. Clair 
    County Transit District under the Bi-State Transit Safety 
    Act (repealed). 
        (q) Information prohibited from being disclosed by the 
    Personnel Record Review Act. 
        (r) Information prohibited from being disclosed by the 
    Illinois School Student Records Act. 
        (s) Information the disclosure of which is restricted 
    under Section 5-108 of the Public Utilities Act. 
        (t) (Blank). 
        (u) Records and information provided to an independent 
    team of experts under the Developmental Disability and 
    Mental Health Safety Act (also known as Brian's Law). 
        (v) Names and information of people who have applied 
    for or received Firearm Owner's Identification Cards under 
    the Firearm Owners Identification Card Act or applied for 
    or received a concealed carry license under the Firearm 
    Concealed Carry Act, unless otherwise authorized by the 
    Firearm Concealed Carry Act; and databases under the 
    Firearm Concealed Carry Act, records of the Concealed 
    Carry Licensing Review Board under the Firearm Concealed 
    Carry Act, and law enforcement agency objections under the 
    Firearm Concealed Carry Act. 
        (v-5) Records of the Firearm Owner's Identification 
    Card Review Board that are exempted from disclosure under 
    Section 10 of the Firearm Owners Identification Card Act.
        (w) Personally identifiable information which is 
    exempted from disclosure under subsection (g) of Section 
    19.1 of the Toll Highway Act.
        (x) Information which is exempted from disclosure 
    under Section 5-1014.3 of the Counties Code or Section 
    8-11-21 of the Illinois Municipal Code. 
        (y) Confidential information under the Adult 
    Protective Services Act and its predecessor enabling 
    statute, the Elder Abuse and Neglect Act, including 
    information about the identity and administrative finding 
    against any caregiver of a verified and substantiated 
    decision of abuse, neglect, or financial exploitation of 
    an eligible adult maintained in the Registry established 
    under Section 7.5 of the Adult Protective Services Act. 
        (z) Records and information provided to a fatality 
    review team or the Illinois Fatality Review Team Advisory 
    Council under Section 15 of the Adult Protective Services 
    Act. 
        (aa) Information which is exempted from disclosure 
    under Section 2.37 of the Wildlife Code. 
        (bb) Information which is or was prohibited from 
    disclosure by the Juvenile Court Act of 1987. 
        (cc) Recordings made under the Law Enforcement 
    Officer-Worn Body Camera Act, except to the extent 
    authorized under that Act.
        (dd) Information that is prohibited from being 
    disclosed under Section 45 of the Condominium and Common 
    Interest Community Ombudsperson Act. 
        (ee) Information that is exempted from disclosure 
    under Section 30.1 of the Pharmacy Practice Act. 
        (ff) Information that is exempted from disclosure 
    under the Revised Uniform Unclaimed Property Act. 
        (gg) Information that is prohibited from being 
    disclosed under Section 7-603.5 of the Illinois Vehicle 
    Code. 
        (hh) Records that are exempt from disclosure under 
    Section 1A-16.7 of the Election Code. 
        (ii) Information which is exempted from disclosure 
    under Section 2505-800 of the Department of Revenue Law of 
    the Civil Administrative Code of Illinois. 
        (jj) Information and reports that are required to be 
    submitted to the Department of Labor by registering day 
    and temporary labor service agencies but are exempt from 
    disclosure under subsection (a-1) of Section 45 of the Day 
    and Temporary Labor Services Act. 
        (kk) Information prohibited from disclosure under the 
    Seizure and Forfeiture Reporting Act. 
        (ll) Information the disclosure of which is restricted 
    and exempted under Section 5-30.8 of the Illinois Public 
    Aid Code. 
        (mm) Records that are exempt from disclosure under 
    Section 4.2 of the Crime Victims Compensation Act. 
        (nn) Information that is exempt from disclosure under 
    Section 70 of the Higher Education Student Assistance Act. 
        (oo) Communications, notes, records, and reports 
    arising out of a peer support counseling session 
    prohibited from disclosure under the First Responders 
    Suicide Prevention Act. 
        (pp) Names and all identifying information relating to 
    an employee of an emergency services provider or law 
    enforcement agency under the First Responders Suicide 
    Prevention Act. 
        (qq) Information and records held by the Department of 
    Public Health and its authorized representatives collected 
    under the Reproductive Health Act. 
        (rr) Information that is exempt from disclosure under 
    the Cannabis Regulation and Tax Act. 
        (ss) Data reported by an employer to the Department of 
    Human Rights pursuant to Section 2-108 of the Illinois 
    Human Rights Act.
        (tt) Recordings made under the Children's Advocacy 
    Center Act, except to the extent authorized under that 
    Act. 
        (uu) Information that is exempt from disclosure under 
    Section 50 of the Sexual Assault Evidence Submission Act. 
        (vv) Information that is exempt from disclosure under 
    subsections (f) and (j) of Section 5-36 of the Illinois 
    Public Aid Code. 
        (ww) Information that is exempt from disclosure under 
    Section 16.8 of the State Treasurer Act. 
        (xx) Information that is exempt from disclosure or 
    information that shall not be made public under the 
    Illinois Insurance Code. 
        (yy) Information prohibited from being disclosed under 
    the Illinois Educational Labor Relations Act.
        (zz) Information prohibited from being disclosed under 
    the Illinois Public Labor Relations Act. 
        (aaa) Information prohibited from being disclosed 
    under Section 1-167 of the Illinois Pension Code. 
        (bbb) Information that is prohibited from disclosure 
    by the Illinois Police Training Act and the Illinois State 
    Police Act. 
        (ccc) Records exempt from disclosure under Section 
    2605-304 of the Illinois State Police Law of the Civil 
    Administrative Code of Illinois. 
        (ddd) Information prohibited from being disclosed 
    under Section 35 of the Address Confidentiality for 
    Victims of Domestic Violence, Sexual Assault, Human 
    Trafficking, or Stalking Act. 
        (eee) Information prohibited from being disclosed 
    under subsection (b) of Section 75 of the Domestic 
    Violence Fatality Review Act. 
        (fff) Images from cameras under the Expressway Camera 
    Act. This subsection (fff) is inoperative on and after 
    July 1, 2025. 
        (ggg) Information prohibited from disclosure under 
    paragraph (3) of subsection (a) of Section 14 of the Nurse 
    Agency Licensing Act. 
        (hhh) Information submitted to the Illinois State 
    Police in an affidavit or application for an assault 
    weapon endorsement, assault weapon attachment endorsement, 
    .50 caliber rifle endorsement, or .50 caliber cartridge 
    endorsement under the Firearm Owners Identification Card 
    Act. 
        (iii) Data exempt from disclosure under Section 50 of 
    the School Safety Drill Act. 
        (jjj) (hhh) Information exempt from disclosure under 
    Section 30 of the Insurance Data Security Law. 
        (kkk) (iii) Confidential business information 
    prohibited from disclosure under Section 45 of the Paint 
    Stewardship Act. 
        (lll) (iii) Data exempt from disclosure under Section 
    2-3.196 of the School Code. 
        (mmm) (iii) Information prohibited from being 
    disclosed under subsection (e) of Section 1-129 of the 
    Illinois Power Agency Act. 
        (nnn) Materials received by the Department of Commerce 
    and Economic Opportunity that are confidential under the 
    Music and Musicians Tax Credit and Jobs Act. 
(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22; 
102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff. 
8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22; 
102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff. 
6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372, 
eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23; 
103-580, eff. 12-8-23; revised 1-2-24.)
 
    Section 52-5. The Illinois Income Tax Act is amended by 
adding Section 241 as follows:
 
    (35 ILCS 5/241 new)
    Sec. 241. Music and Musicians Tax Credits and Jobs Act. 
Taxpayers who have been awarded a credit under the Music and 
Musicians Tax Credits and Jobs Act are entitled to a credit 
against the taxes imposed by subsections (a) and (b) of 
Section 201 of this Act in an amount determined by the 
Department of Commerce and Economic Opportunity under that 
Act. The credit shall be claimed in the taxable year in which 
the tax credit award certificate is issued, and the 
certificate shall be attached to the return. If the taxpayer 
is a partnership or Subchapter S corporation, the credit shall 
be allowed to the partners or shareholders in accordance with 
the provisions of Section 251.
    The credit may not reduce the taxpayer's liability to less 
than zero. If the amount of the credit exceeds the tax 
liability for the year, the excess may be carried forward and 
applied to the tax liability of the 5 taxable years following 
the excess credit year. The credit shall be applied to the 
earliest year for which there is a tax liability. If there are 
credits from more than one tax year that are available to 
offset a liability, the earlier credit shall be applied first. 
 
ARTICLE 55. 

 
    Section 55-5. The Illinois Income Tax Act is amended by 
changing Section 216 as follows:
 
    (35 ILCS 5/216)
    Sec. 216. Credit for wages paid to returning citizens 
ex-felons.
    (a) For each taxable year beginning on or after January 1, 
2007, each taxpayer is entitled to a credit against the tax 
imposed by subsections (a) and (b) of Section 201 of this Act 
in an amount equal to 5% of qualified wages paid by the 
taxpayer during the taxable year to one or more Illinois 
residents who are qualified returning citizens ex-offenders. 
For each taxable year beginning on or after January 1, 2025, 
each taxpayer is entitled to a credit against the tax imposed 
by subsections (a) and (b) of Section 201 of this Act in an 
amount equal to 15% of qualified wages paid by the taxpayer 
during the taxable year to one or more Illinois residents who 
are qualified returning citizens. The total credit allowed to 
a taxpayer with respect to each qualified returning citizen 
ex-offender may not exceed $1,500 for all taxable years ending 
on or before December 31, 2024. For taxable years ending on or 
after December 31, 2025, the total credit allowed to a 
taxpayer with respect to each qualified returning citizen may 
not exceed $7,500. For taxable years ending on or after 
December 31, 2025, the total amount in credit that may be 
awarded under this Section may not exceed $1,000,000 per 
taxable year. For taxable years ending before December 31, 
2023, for partners, shareholders of Subchapter S corporations, 
and owners of limited liability companies, if the liability 
company is treated as a partnership for purposes of federal 
and State income taxation, there shall be allowed a credit 
under this Section to be determined in accordance with the 
determination of income and distributive share of income under 
Sections 702 and 704 and Subchapter S of the Internal Revenue 
Code. For taxable years ending on or after December 31, 2023, 
partners and shareholders of subchapter S corporations are 
entitled to a credit under this Section as provided in Section 
251. 
    (b) For purposes of this Section, "qualified wages":
        (1) includes only wages that are subject to federal 
    unemployment tax under Section 3306 of the Internal 
    Revenue Code, without regard to any dollar limitation 
    contained in that Section; 
        (2) does not include any amounts paid or incurred by 
    an employer for any period to any qualified returning 
    citizen ex-offender for whom the employer receives 
    federally funded payments for on-the-job training of that 
    qualified returning citizen ex-offender for that period; 
    and 
        (3) includes only wages attributable to service 
    rendered during the one-year period beginning with the day 
    the qualified returning citizen ex-offender begins work 
    for the employer. 
    If the taxpayer has received any payment from a program 
established under Section 482(e)(1) of the federal Social 
Security Act with respect to a qualified returning citizen 
ex-offender, then, for purposes of calculating the credit 
under this Section, the amount of the qualified wages paid to 
that qualified ex-offender must be reduced by the amount of 
the payment. 
    (c) For purposes of this Section, "qualified returning 
citizen ex-offender" means any person who: 
        (1) has been convicted of a crime in this State or of 
    an offense in any other jurisdiction, not including any 
    offense or attempted offense that would subject a person 
    to registration under the Sex Offender Registration Act;
        (2) was sentenced to a period of incarceration in an 
    Illinois adult correctional center; and
        (3) was hired by the taxpayer within 3 years after 
    being released from an Illinois adult correctional center 
    if the credit is claimed for a taxable year beginning on or 
    before January 1, 2024, or was hired by the taxpayer 
    within 5 years after being released from an Illinois adult 
    correctional center if the credit is claimed for a taxable 
    year beginning on or after January 1, 2025.
    (d) In no event shall a credit under this Section reduce 
the taxpayer's liability to less than zero. If the amount of 
the credit exceeds the tax liability for the year, the excess 
may be carried forward and applied to the tax liability of the 
5 taxable years following the excess credit year. The tax 
credit shall be applied to the earliest year for which there is 
a tax liability. If there are credits for more than one year 
that are available to offset a liability, the earlier credit 
shall be applied first.
    (e) This Section is exempt from the provisions of Section 
250. 
(Source: P.A. 103-396, eff. 1-1-24.)
 
ARTICLE 60. 

 
    Section 60-5. The Illinois Income Tax Act is amended by 
changing Section 234 as follows:
 
    (35 ILCS 5/234)
    Sec. 234. Volunteer emergency workers.
    (a) For taxable years beginning on or after January 1, 
2023 and beginning prior to January 1, 2028, each individual 
who (i) serves as a volunteer emergency worker for at least 9 
months during the taxable year and (ii) does not receive 
compensation for his or her services as a volunteer emergency 
worker of more than $5,000 for the taxable year may apply to 
the Department for a credit against the taxes imposed by 
subsections (a) and (b) of Section 201. The amount of the 
credit shall be $500 per eligible individual. If a taxpayer 
described in this subsection (a) is a volunteer member of a 
county or municipal emergency services and disaster agency 
under the Illinois Emergency Management Agency Act, then the 
taxpayer must serve as a volunteer emergency worker with the 
county or municipal emergency services and disaster agency for 
at least 100 hours during the taxable year. The aggregate 
amount of all tax credits awarded by the Department under this 
Section in any calendar year may not exceed $5,000,000. 
Credits shall be awarded on a first-come first-served basis.
    (b) A credit under this Section may not reduce a 
taxpayer's liability to less than zero.
    (c) By January 24 of each year, the Office of the State 
Fire Marshal shall provide the Department of Revenue an 
electronic file with the names of volunteer emergency workers, 
other than volunteer emergency workers who are volunteer 
members of a county or municipal emergency services and 
disaster agency under the Illinois Emergency Management Agency 
Act, who (i) volunteered for at least 9 months during the 
immediately preceding calendar year, (ii) did not receive 
compensation for their services as a volunteer emergency 
worker of more than $5,000 during the immediately preceding 
calendar year, and (iii) are registered with the Office of the 
State Fire Marshal as of January 12 of the current year as 
meeting the requirements of items (i) and (ii) for the 
immediately preceding calendar year. The chief of the fire 
department, fire protection district, or fire protection 
association shall be responsible for notifying the State Fire 
Marshal of the volunteer emergency workers who met the 
requirements of items (i) and (ii) during the immediately 
preceding calendar year by January 12 of the current year. 
Notification shall be required in the format required by the 
State Fire Marshal. The chief of the fire department, fire 
protection district, or fire protection association shall be 
responsible for the verification and accuracy of their 
submission to the State Fire Marshal under this subsection.
    By January 24, 2025, and by January 24 of each year 
thereafter, the Illinois Emergency Management Agency and 
Office of Homeland Security shall provide the Department of 
Revenue an electronic file with the names of volunteer 
emergency workers who (A) volunteered with a county or 
municipal emergency services and disaster agency pursuant to 
the Illinois Emergency Management Agency Act for at least 9 
months during the immediately preceding calendar year, (B) did 
not receive compensation for their services as a volunteer 
emergency worker of more than $5,000 during the immediately 
preceding calendar year, (C) volunteered with a county or 
municipal emergency services and disaster agency pursuant to 
the Illinois Emergency Management Agency Act for at least 100 
hours during the immediately preceding calendar year, and (D) 
are registered with the Illinois Emergency Management Agency 
and Office of Homeland Security as of January 12 of the current 
year as meeting the requirements of items (A), (B), and (C) for 
the immediately preceding calendar year. The coordinator of 
the emergency services and disaster agency shall be 
responsible for notifying the Illinois Emergency Management 
Agency and Office of Homeland Security of the volunteer 
emergency workers who met the requirements of items (A), (B), 
and (C) during the immediately preceding calendar year by 
January 12 of the current year. Notification shall be in the 
format required by the Illinois Emergency Management Agency 
and Office of Homeland Security. The coordinator of the 
emergency services and disaster agency shall be responsible 
for the verification and accuracy of their submission to the 
Illinois Emergency Management Agency and Office of Homeland 
Security under this subsection. 
    (d) As used in this Section, "volunteer emergency worker" 
means a person who serves as a member, other than on a 
full-time career basis, of a fire department, fire protection 
district, or fire protection association that has a Fire 
Department Identification Number issued by the Office of the 
State Fire Marshal and who does not serve as a member on a 
full-time career basis for another fire department, fire 
protection district, fire protection association, or 
governmental entity. For taxable years beginning on or after 
January 1, 2024, "volunteer emergency worker" also means a 
person who is a volunteer member of a county or municipal 
emergency services and disaster agency pursuant to the 
Illinois Emergency Management Agency Act. 
    (e) The Department shall adopt rules to implement and 
administer this Section, including rules concerning 
applications for the tax credit. 
(Source: P.A. 103-9, eff. 6-7-23.)
 
ARTICLE 65. 

 
    Section 65-5. The Hotel Operators' Occupation Tax Act is 
amended by changing Sections 2, 3, 4, 5, and 6 and by adding 
Sections 3-2 and 3-3 as follows:
 
    (35 ILCS 145/2)  (from Ch. 120, par. 481b.32)
    Sec. 2. Definitions. As used in this Act, unless the 
context otherwise requires: 
    (1) "Hotel" means any building or buildings in which the 
public may, for a consideration, obtain living quarters, 
sleeping or housekeeping accommodations. The term includes, 
but is not limited to, inns, motels, tourist homes or courts, 
lodging houses, rooming houses and apartment houses, retreat 
centers, conference centers, and hunting lodges. For the 
purposes of re-renters of hotel rooms only, "hotel" does not 
include a short-term rental. 
    (2) "Operator" means any person engaged in the business of 
renting, leasing, or letting rooms in operating a hotel. 
    (3) "Occupancy" means the use or possession, or the right 
to the use or possession, of any room or rooms in a hotel for 
any purpose, or the right to the use or possession of the 
furnishings or to the services and accommodations accompanying 
the use and possession of the room or rooms.
    (4) "Room" or "rooms" means any living quarters, sleeping 
or housekeeping accommodations.
    (5) "Permanent resident" means any person who occupied or 
has the right to occupy any room or rooms, regardless of 
whether or not it is the same room or rooms, in a hotel for at 
least 30 consecutive days.
    (6) "Rent" or "rental" means the consideration received 
for occupancy, valued in money, whether received in money or 
otherwise, including all receipts, cash, credits and property 
or services of any kind or nature. "Rent" or "rental" includes 
any fee, charge, or commission received from a guest by a 
re-renter of hotel rooms specifically in connection with the 
re-rental of hotel rooms, but does not include any fee, 
charge, or commission received from a short-term rental by a 
hosting platform. 
    (7) "Department" means the Department of Revenue.
    (8) "Person" means any natural individual, firm, 
partnership, association, joint stock company, joint 
adventure, public or private corporation, limited liability 
company, or a receiver, executor, trustee, guardian or other 
representative appointed by order of any court.
    (9) "Re-renter of hotel rooms" means a person who is not 
employed by the hotel operator but who, either directly or 
indirectly, through agreements or arrangements with third 
parties, collects or processes the payment of rent for a hotel 
room located in this State and (i) obtains the right or 
authority to grant control of, access to, or occupancy of a 
hotel room in this State to a guest of the hotel or (ii) 
facilitates the booking of a hotel room located in this State. 
A person who obtains those rights or authorities is not 
considered a re-renter of a hotel room if the person operates 
under a shared hotel brand with the operator. 
    (10) "Hosting platform" or "platform" means a person who 
provides an online application, software, website, or system 
through which a short-term rental located in this State is 
advertised or held out to the public as available to rent for 
occupancy. For purposes of this definition, "short-term 
rental" means an owner-occupied, tenant-occupied, or 
non-owner-occupied dwelling, including, but not limited to, an 
apartment, house, cottage, or condominium, located in this 
State, where: (i) at least one room in the dwelling is rented 
to an occupant for a period of less than 30 consecutive days; 
and (ii) all accommodations are reserved in advance; provided, 
however, that a dwelling shall be considered a single room if 
rented as such. 
    (11) "Shared hotel brand" means an identifying trademark 
that a hotel operator is expressly licensed to operate under 
in accordance with the terms of a hotel franchise or 
management agreement 
(Source: P.A. 100-213, eff. 8-18-17.)
 
    (35 ILCS 145/3)  (from Ch. 120, par. 481b.33)
    Sec. 3. Rate; exemptions. 
    (a) A tax is imposed upon hotel operators persons engaged 
in the business of renting, leasing or letting rooms in a hotel 
at the rate of 5% of 94% of the gross rental receipts from 
engaging in business as a hotel operator such renting, leasing 
or letting, excluding, however, from gross rental receipts, 
the proceeds of such renting, leasing or letting hotel rooms 
to permanent residents of a that hotel and proceeds from the 
tax imposed under subsection (c) of Section 13 of the 
Metropolitan Pier and Exposition Authority Act.
    (b) There shall be imposed an additional tax upon hotel 
operators persons engaged in the business of renting, leasing 
or letting rooms in a hotel at the rate of 1% of 94% of the 
gross rental receipts received by the hotel operator from 
engaging in business as a hotel operator from such renting, 
leasing or letting, excluding, however, from gross rental 
receipts, the proceeds of such renting, leasing or letting to 
permanent residents of that hotel and proceeds from the tax 
imposed under subsection (c) of Section 13 of the Metropolitan 
Pier and Exposition Authority Act.
    (b-5) Beginning on July 1, 2024, if the renting, leasing, 
or letting of a hotel room is done through a re-renter of hotel 
rooms, then, subject to the provisions of Sections 3-2 and 
3-3, the re-renter is the hotel operator for the purposes of 
the taxes under subsections (a) and (b). If the re-renter is 
headquartered outside of this State and has no presence in 
this State other than its business as a re-renter, conducted 
remotely, then, subject to the provisions of Sections 3-2 and 
3-3, such re-renter is the hotel operator for the purposes of 
the taxes under subsections (a) and (b) if it meets one of the 
following thresholds: 
        (1) the cumulative gross receipts from rentals in 
    Illinois by the re-renter of hotel rooms are $100,000 or 
    more; or 
        (2) the re-renter of hotel rooms cumulatively enters 
    into 200 or more separate transactions for rentals in 
    Illinois. 
    A re-renter of hotel rooms who is headquartered outside of 
this State and has no presence in this State other than its 
business as a re-renter, conducted remotely, shall determine 
on a quarterly basis, ending on the last day of March, June, 
September, and December, whether he or she meets the threshold 
of either paragraph (1) or (2) of this subsection (b-5) for the 
preceding 12-month period. If such re-renter of hotel rooms 
meets the threshold of either paragraph (1) or (2) for a 
12-month period, he or she is subject to tax under this Act and 
is required to remit the tax imposed under this Act and file 
returns for the 12-month period beginning on the first day of 
the next month after he or she determines that he or she meets 
the threshold of paragraph (1) or (2). At the end of that 
12-month period, such re-renter of hotel rooms shall determine 
whether he or she continued to meet the threshold of either 
paragraph (1) or (2) during the preceding 12-month period. If 
he or she met the threshold in either paragraph (1) or (2) for 
the preceding 12-month period, he or she is a hotel operator in 
this State and is required to remit the tax imposed under this 
Act and file returns for the subsequent 12-month period. If, 
at the end of a 12-month period during which such re-renter is 
required to remit the tax imposed under this Act, the 
re-renter determines that he or she did not meet the threshold 
in either paragraph (1) or (2) during the preceding 12-month 
period, he or she shall subsequently determine on a quarterly 
basis, ending on the last day of March, June, September, and 
December, whether he or she meets the threshold of either 
paragraph (1) or (2) for the preceding 12-month period. 
    (c) No funds received pursuant to this Act shall be used to 
advertise for or otherwise promote new competition in the 
hotel business.
    (d) However, such tax is not imposed upon the privilege of 
engaging in any business in Interstate Commerce or otherwise, 
which business may not, under the Constitution and Statutes of 
the United States, be made the subject of taxation by this 
State. In addition, the tax is not imposed upon gross rental 
receipts for which the hotel operator is prohibited from 
obtaining reimbursement for the tax from the customer by 
reason of a federal treaty.
    (d-5) On and after July 1, 2017, the tax imposed by this 
Act shall not apply to gross rental receipts received by an 
entity that is organized and operated exclusively for 
religious purposes and possesses an active Exemption 
Identification Number issued by the Department pursuant to the 
Retailers' Occupation Tax Act when acting as a hotel operator 
renting, leasing, or letting rooms: 
        (1) in furtherance of the purposes for which it is 
    organized; or 
        (2) to entities that (i) are organized and operated 
    exclusively for religious purposes, (ii) possess an active 
    Exemption Identification Number issued by the Department 
    pursuant to the Retailers' Occupation Tax Act, and (iii) 
    rent the rooms in furtherance of the purposes for which 
    they are organized. 
    No gross rental receipts are exempt under paragraph (2) of 
this subsection (d-5) unless the hotel operator obtains the 
active Exemption Identification Number from the exclusively 
religious entity to whom it is renting and maintains that 
number in its books and records. Gross rental receipts from 
all rentals other than those described in items (1) or (2) of 
this subsection (d-5) are subject to the tax imposed by this 
Act unless otherwise exempt under this Act. 
    This subsection (d-5) is exempt from the sunset provisions 
of Section 3-5 of this Act. 
    (d-10) On and after July 1, 2023, the tax imposed by this 
Act shall not apply to gross rental receipts received from the 
renting, leasing, or letting of rooms to an entity that is 
organized and operated exclusively by an organization 
chartered by the United States Congress for the purpose of 
providing disaster relief and that possesses an active 
Exemption Identification Number issued by the Department 
pursuant to the Retailers' Occupation Tax Act if the renting, 
leasing, or letting of the rooms is in furtherance of the 
purposes for which the exempt organization is organized. This 
subsection (d-10) is exempt from the sunset provisions of 
Section 3-5 of this Act. 
    (e) Persons subject to the tax imposed by this Act may 
reimburse themselves for their tax liability under this Act by 
separately stating such tax as an additional charge, which 
charge may be stated in combination, in a single amount, with 
any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the 
Illinois Municipal Code, and Section 25.05-10 of "An Act to 
revise the law in relation to counties".
    (f) If any hotel operator collects an amount (however 
designated) which purports to reimburse such operator for 
hotel operators' occupation tax liability measured by receipts 
which are not subject to hotel operators' occupation tax, or 
if any hotel operator, in collecting an amount (however 
designated) which purports to reimburse such operator for 
hotel operators' occupation tax liability measured by receipts 
which are subject to tax under this Act, collects more from the 
guest or re-renter customer than the operators' hotel 
operators' occupation tax liability in the transaction is, the 
guest or re-renter, as applicable, customer shall have a legal 
right to claim a refund of such amount from such operator. 
However, if such amount is not refunded to the guest or 
re-renter, as applicable, customer for any reason, the hotel 
operator is liable to pay such amount to the Department.
(Source: P.A. 103-9, eff. 6-7-23.)
 
    (35 ILCS 145/3-2 new)
    Sec. 3-2. No resale exemption; tax incurred by re-renters 
of hotel rooms. A hotel operator who rents, leases, or lets 
rooms subject to tax under this Act to a re-renter of hotel 
rooms incurs the tax under this Act on the gross rental 
receipts it receives from that re-renter of hotel rooms and 
cannot claim any resale exemption. In such situations, the 
re-renter of hotel rooms incurs tax under this Act on its gross 
rental receipts as provided in Section 3 of this Act.
 
    (35 ILCS 145/3-3 new)
    Sec. 3-3. Re-renter of hotel rooms; credit for tax 
reimbursement. A re-renter of hotel rooms may take a credit 
against the tax it incurs on the rental of a hotel room under 
this Act for the amount it paid under subsection (e) of Section 
3 of this Act to a hotel operator as reimbursement for the tax 
incurred under this Act for the rental of that room for the 
purposes of re-rental.
 
    (35 ILCS 145/4)  (from Ch. 120, par. 481b.34)
    Sec. 4. Books and records. Every operator shall keep 
separate books or records of his business as an operator so as 
to show the rents and occupancies taxable under this Act 
separately from his transactions not taxable under this Act. 
If any operator fails to keep such separate books or records, 
he shall be liable to tax at the rate designated in Section 3 
hereof upon the entire proceeds from his business hotel. The 
Department may adopt rules that establish requirements, 
including record forms and formats, for records required to be 
kept and maintained by taxpayers. For purposes of this 
Section, "records" means all data maintained by the taxpayer, 
including data on paper, microfilm, microfiche or any type of 
machine-sensible data compilation.
(Source: P.A. 88-480.)
 
    (35 ILCS 145/5)  (from Ch. 120, par. 481b.35)
    Sec. 5. Certificate of registration; retailers' occupation 
tax registration provisions apply. It shall be unlawful for 
any person to engage in the business as a hotel operator of 
renting, leasing or letting rooms in a hotel in this State 
without a certificate of registration from the Department.
    All of the provisions of Sections 2a and 2b of the 
Retailers' Occupation Tax Act, in effect on the effective date 
of this Act, as subsequently amended, shall apply to persons 
in the business as hotel operators of renting, leasing or 
letting rooms in a hotel in this State, to the same extent as 
if such provisions were included herein.
(Source: Laws 1961, p. 1728.)
 
    (35 ILCS 145/6)  (from Ch. 120, par. 481b.36)
    Sec. 6. Returns; allocation of proceeds Filing of returns 
and distribution of revenue. Except as provided hereinafter in 
this Section, on or before the last day of each calendar month, 
every person engaged as a hotel operator in the business of 
renting, leasing or letting rooms in a hotel in this State 
during the preceding calendar month shall file a return with 
the Department, stating:
        1. The name of the operator;
        2. His residence address and the address of his 
    principal place of business and the address of the 
    principal place of business (if that is a different 
    address) from which he engages in the business as a hotel 
    operator of renting, leasing or letting rooms in a hotel 
    in this State (including, if required by the Department, 
    the address of each hotel from which rental receipts were 
    received);
        3. Total amount of rental receipts received by him 
    during the preceding calendar month from engaging in 
    business as a hotel operator renting, leasing or letting 
    rooms during such preceding calendar month;
        4. Total amount of rental receipts received by him 
    during the preceding calendar month from renting, leasing 
    or letting rooms to permanent residents during such 
    preceding calendar month;
        5. Total amount of other exclusions from gross rental 
    receipts allowed by this Act;
        6. Gross rental receipts which were received by him 
    during the preceding calendar month and upon the basis of 
    which the tax is imposed;
        7. The amount of tax due;
        8. Credit for any reimbursement of tax paid by a 
    re-renter of hotel rooms to hotel operators for rentals 
    purchased for re-rental, as provided in Section 3-3 of 
    this Act; 
        9. 8. Such other reasonable information as the 
    Department may require.
    If the operator's average monthly tax liability to the 
Department does not exceed $200, the Department may authorize 
his returns to be filed on a quarter annual basis, with the 
return for January, February and March of a given year being 
due by April 30 of such year; with the return for April, May 
and June of a given year being due by July 31 of such year; 
with the return for July, August and September of a given year 
being due by October 31 of such year, and with the return for 
October, November and December of a given year being due by 
January 31 of the following year.
    If the operator's average monthly tax liability to the 
Department does not exceed $50, the Department may authorize 
his returns to be filed on an annual basis, with the return for 
a given year being due by January 31 of the following year.
    Such quarter annual and annual returns, as to form and 
substance, shall be subject to the same requirements as 
monthly returns.
    Notwithstanding any other provision in this Act concerning 
the time within which an operator may file his return, in the 
case of any operator who ceases to engage in a kind of business 
which makes him responsible for filing returns under this Act, 
such operator shall file a final return under this Act with the 
Department not more than 1 month after discontinuing such 
business.
    Where the same person has more than 1 business registered 
with the Department under separate registrations under this 
Act, such person shall not file each return that is due as a 
single return covering all such registered businesses, but 
shall file separate returns for each such registered business.
    In his return, the operator shall determine the value of 
any consideration other than money received by him in 
connection with engaging in business as a hotel operator the 
renting, leasing or letting of rooms in the course of his 
business and he shall include such value in his return. Such 
determination shall be subject to review and revision by the 
Department in the manner hereinafter provided for the 
correction of returns.
    Where the operator is a corporation, the return filed on 
behalf of such corporation shall be signed by the president, 
vice-president, secretary or treasurer or by the properly 
accredited agent of such corporation.
    The person filing the return herein provided for shall, at 
the time of filing such return, pay to the Department the 
amount of tax herein imposed. The operator filing the return 
under this Section shall, at the time of filing such return, 
pay to the Department the amount of tax imposed by this Act 
less a discount of 2.1% or $25 per calendar year, whichever is 
greater, which is allowed to reimburse the operator for the 
expenses incurred in keeping records, preparing and filing 
returns, remitting the tax and supplying data to the 
Department on request.
    If any payment provided for in this Section exceeds the 
operator's liabilities under this Act, as shown on an original 
return, the Department may authorize the operator to credit 
such excess payment against liability subsequently to be 
remitted to the Department under this Act, in accordance with 
reasonable rules adopted by the Department. If the Department 
subsequently determines that all or any part of the credit 
taken was not actually due to the operator, the operator's 
discount shall be reduced by an amount equal to the difference 
between the discount as applied to the credit taken and that 
actually due, and that operator shall be liable for penalties 
and interest on such difference. 
    There shall be deposited into the Build Illinois Fund in 
the State Treasury for each State fiscal year 40% of the amount 
of total net revenue from the tax imposed by subsection (a) of 
Section 3. Of the remaining 60%: (i) $5,000,000 shall be 
deposited into the Illinois Sports Facilities Fund and 
credited to the Subsidy Account each fiscal year by making 
monthly deposits in the amount of 1/8 of $5,000,000 plus 
cumulative deficiencies in such deposits for prior months, and 
(ii) an amount equal to the then applicable Advance Amount 
shall be deposited into the Illinois Sports Facilities Fund 
and credited to the Advance Account each fiscal year by making 
monthly deposits in the amount of 1/8 of the then applicable 
Advance Amount plus any cumulative deficiencies in such 
deposits for prior months. (The deposits of the then 
applicable Advance Amount during each fiscal year shall be 
treated as advances of funds to the Illinois Sports Facilities 
Authority for its corporate purposes to the extent paid to the 
Authority or its trustee and shall be repaid into the General 
Revenue Fund in the State Treasury by the State Treasurer on 
behalf of the Authority pursuant to Section 19 of the Illinois 
Sports Facilities Authority Act, as amended. If in any fiscal 
year the full amount of the then applicable Advance Amount is 
not repaid into the General Revenue Fund, then the deficiency 
shall be paid from the amount in the Local Government 
Distributive Fund that would otherwise be allocated to the 
City of Chicago under the State Revenue Sharing Act.)
    For purposes of the foregoing paragraph, the term "Advance 
Amount" means, for fiscal year 2002, $22,179,000, and for 
subsequent fiscal years through fiscal year 2033, 105.615% of 
the Advance Amount for the immediately preceding fiscal year, 
rounded up to the nearest $1,000.
    Of the remaining 60% of the amount of total net revenue 
beginning on August 1, 2011 through June 30, 2023, from the tax 
imposed by subsection (a) of Section 3 after all required 
deposits into the Illinois Sports Facilities Fund, an amount 
equal to 8% of the net revenue realized from this Act during 
the preceding month shall be deposited as follows: 18% of such 
amount shall be deposited into the Chicago Travel Industry 
Promotion Fund for the purposes described in subsection (n) of 
Section 5 of the Metropolitan Pier and Exposition Authority 
Act and the remaining 82% of such amount shall be deposited 
into the Local Tourism Fund each month for purposes authorized 
by Section 605-705 of the Department of Commerce and Economic 
Opportunity Law. Beginning on August 1, 2011 and through June 
30, 2023, an amount equal to 4.5% of the net revenue realized 
from this Act during the preceding month shall be deposited as 
follows: 55% of such amount shall be deposited into the 
Chicago Travel Industry Promotion Fund for the purposes 
described in subsection (n) of Section 5 of the Metropolitan 
Pier and Exposition Authority Act and the remaining 45% of 
such amount deposited into the International Tourism Fund for 
the purposes authorized in Section 605-707 of the Department 
of Commerce and Economic Opportunity Law. "Net revenue 
realized" means the revenue collected by the State under this 
Act less the amount paid out as refunds to taxpayers for 
overpayment of liability under this Act.
    Beginning on July 1, 2023, of the remaining 60% of the 
amount of total net revenue realized from the tax imposed 
under subsection (a) of Section 3, after all required deposits 
into the Illinois Sports Facilities Fund: 
        (1) an amount equal to 8% of the net revenue realized 
    under this Act for the preceding month shall be deposited 
    as follows: 82% to the Local Tourism Fund and 18% to the 
    Chicago Travel Industry Promotion Fund; and
        (2) an amount equal to 4.5% of the net revenue 
    realized under this Act for the preceding month shall be 
    deposited as follows: 55% to the Chicago Travel Industry 
    Promotion Fund and 45% to the International Tourism Fund. 
    After making all these deposits, any remaining net revenue 
realized from the tax imposed under subsection (a) of Section 
3 shall be deposited into the Tourism Promotion Fund in the 
State Treasury. All moneys received by the Department from the 
additional tax imposed under subsection (b) of Section 3 shall 
be deposited into the Build Illinois Fund in the State 
Treasury.
    The Department may, upon separate written notice to a 
taxpayer, require the taxpayer to prepare and file with the 
Department on a form prescribed by the Department within not 
less than 60 days after receipt of the notice an annual 
information return for the tax year specified in the notice. 
Such annual return to the Department shall include a statement 
of gross receipts as shown by the operator's last State income 
tax return. If the total receipts of the business as reported 
in the State income tax return do not agree with the gross 
receipts reported to the Department for the same period, the 
operator shall attach to his annual information return a 
schedule showing a reconciliation of the 2 amounts and the 
reasons for the difference. The operator's annual information 
return to the Department shall also disclose payroll 
information of the operator's business during the year covered 
by such return and any additional reasonable information which 
the Department deems would be helpful in determining the 
accuracy of the monthly, quarterly or annual tax returns by 
such operator as hereinbefore provided for in this Section.
    If the annual information return required by this Section 
is not filed when and as required the taxpayer shall be liable 
for a penalty in an amount determined in accordance with 
Section 3-4 of the Uniform Penalty and Interest Act until such 
return is filed as required, the penalty to be assessed and 
collected in the same manner as any other penalty provided for 
in this Act.
    The chief executive officer, proprietor, owner or highest 
ranking manager shall sign the annual return to certify the 
accuracy of the information contained therein. Any person who 
willfully signs the annual return containing false or 
inaccurate information shall be guilty of perjury and punished 
accordingly. The annual return form prescribed by the 
Department shall include a warning that the person signing the 
return may be liable for perjury.
    The foregoing portion of this Section concerning the 
filing of an annual information return shall not apply to an 
operator who is not required to file an income tax return with 
the United States Government.
(Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
 
    Section 65-10. The Illinois Municipal Code is amended by 
changing Section 8-3-13 as follows:
 
    (65 ILCS 5/8-3-13)  (from Ch. 24, par. 8-3-13)
    Sec. 8-3-13. The corporate authorities of any municipality 
containing 500,000 or more inhabitants may impose a tax prior 
to July 1, 1969, upon all hotel operators persons engaged in 
the municipality in the business of renting, leasing or 
letting rooms in a hotel, as defined in the Hotel Operators' 
Occupation Tax Act, at a rate not to exceed 1% of the gross 
rental receipts from engaging in business as a hotel operator 
the renting, leasing or letting, excluding, however, from 
gross rental receipts, the proceeds of the renting, leasing or 
letting of hotel rooms to permanent residents of a that hotel 
and proceeds from the tax imposed under subsection (c) of 
Section 13 of the Metropolitan Pier and Exposition Authority 
Act.
    The tax imposed by a municipality under this Section and 
all civil penalties that may be assessed as an incident 
thereof shall be collected and enforced by the State 
Department of Revenue. The certificate of registration that is 
issued by the Department to a lessor under the Hotel 
Operators' Occupation Tax Act shall permit the registrant to 
engage in a business that is taxable under any ordinance or 
resolution enacted under this Section without registering 
separately with the Department under the ordinance or 
resolution or under this Section. The Department shall have 
full power to administer and enforce this Section; to collect 
all taxes and penalties due hereunder; to dispose of taxes and 
penalties so collected in the manner provided in this Section; 
and to determine all rights to credit memoranda arising on 
account of the erroneous payment of tax or penalty hereunder. 
In the administration of and compliance with this Section, the 
Department and persons who are subject to this Section shall 
have the same rights, remedies, privileges, immunities, powers 
and duties, and be subject to the same conditions, 
restrictions, limitations, penalties and definitions of terms, 
and employ the same modes of procedure, as are prescribed in 
the Hotel Operators' Occupation Tax Act and the Uniform 
Penalty and Interest Act, as fully as if the provisions 
contained in those Acts were set forth herein.
    Whenever the Department determines that a refund should be 
made under this Section to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the warrant to be drawn for the 
amount specified, and to the person named, in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the Illinois tourism tax fund.
    Persons subject to any tax imposed under authority granted 
by this Section may reimburse themselves for their tax 
liability for that tax by separately stating the tax as an 
additional charge, which charge may be stated in combination, 
in a single amount, with State tax imposed under the Hotel 
Operators' Occupation Tax Act.
    The Department shall forthwith pay over to the State 
Treasurer, ex-officio, as trustee, all taxes and penalties 
collected hereunder. On or before the 25th day of each 
calendar month, the Department shall prepare and certify to 
the Comptroller the disbursement of stated sums of money to 
named municipalities from which lessors have paid taxes or 
penalties hereunder to the Department during the second 
preceding calendar month. The amount to be paid to each 
municipality shall be the amount (not including credit 
memoranda) collected hereunder during the second preceding 
calendar month by the Department, and not including an amount 
equal to the amount of refunds made during the second 
preceding calendar month by the Department on behalf of the 
municipality, less 4% of the balance, which sum shall be 
retained by the State Treasurer to cover the costs incurred by 
the Department in administering and enforcing the provisions 
of this Section, as provided herein. The Department, at the 
time of each monthly disbursement to the municipalities, shall 
prepare and certify to the Comptroller the amount so retained 
by the State Treasurer, which shall be paid into the General 
Revenue Fund of the State Treasury.
    Within 10 days after receipt by the Comptroller of the 
disbursement certification to the municipalities and the 
General Revenue Fund provided for in this Section to be given 
to the Comptroller by the Department, the Comptroller shall 
cause the warrants to be drawn for the respective amounts in 
accordance with the directions contained in the certification.
    Nothing in this Section shall be construed to authorize a 
municipality to impose a tax upon the privilege of engaging in 
any business that, under the Constitution of the United 
States, may not be made the subject of taxation by this State.
    An ordinance or resolution imposing a tax hereunder or 
effecting a change in the rate thereof shall be effective on 
the first day of the calendar month next following the 
expiration of the publication period provided in Section 1-2-4 
in respect to municipalities governed by that Section.
    The corporate authorities of any municipality that levies 
a tax authorized by this Section shall transmit to the 
Department of Revenue on or not later than 5 days after the 
effective date of the ordinance or resolution a certified copy 
of the ordinance or resolution imposing the tax; whereupon, 
the Department of Revenue shall proceed to administer and 
enforce this Section on behalf of the municipality as of the 
effective date of the ordinance or resolution. Upon a change 
in rate of a tax levied hereunder, or upon the discontinuance 
of the tax, the corporate authorities of the municipality 
shall, on or not later than 5 days after the effective date of 
the ordinance or resolution discontinuing the tax or effecting 
a change in rate, transmit to the Department of Revenue a 
certified copy of the ordinance or resolution effecting the 
change or discontinuance. The amounts disbursed to any 
municipality under this Section shall be expended by the 
municipality solely to promote tourism, conventions and other 
special events within that municipality or otherwise to 
attract nonresidents to visit the municipality.
    Any municipality receiving and disbursing money under this 
Section shall report on or before the first Monday in January 
of each year to the Advisory Committee of the Illinois Tourism 
Promotion Fund, created by Section 12 of the Illinois 
Promotion Act. The reports shall specify the purposes for 
which the disbursements were made and shall contain detailed 
amounts of all receipts and disbursements under this Section.
    This Section may be cited as the Tourism, Conventions and 
Other Special Events Promotion Act of 1967.
(Source: P.A. 87-205; 87-733; 87-895.)
 
    Section 65-15. The Metropolitan Pier and Exposition 
Authority Act is amended by changing Section 13 as follows:
 
    (70 ILCS 210/13)  (from Ch. 85, par. 1233)
    Sec. 13. (a) The Authority shall not have power to levy 
taxes for any purpose, except as provided in subsections (b), 
(c), (d), (e), and (f).
    (b) By ordinance the Authority shall, as soon as 
practicable after July 1, 1992 (the effective date of Public 
Act 87-733), impose a Metropolitan Pier and Exposition 
Authority Retailers' Occupation Tax upon all persons engaged 
in the business of selling tangible personal property at 
retail within the territory described in this subsection at 
the rate of 1.0% of the gross receipts (i) from the sale of 
food, alcoholic beverages, and soft drinks sold for 
consumption on the premises where sold and (ii) from the sale 
of food, alcoholic beverages, and soft drinks sold for 
consumption off the premises where sold by a retailer whose 
principal source of gross receipts is from the sale of food, 
alcoholic beverages, and soft drinks prepared for immediate 
consumption.
    The tax imposed under this subsection and all civil 
penalties that may be assessed as an incident to that tax shall 
be collected and enforced by the Illinois Department of 
Revenue. The Department shall have full power to administer 
and enforce this subsection, to collect all taxes and 
penalties so collected in the manner provided in this 
subsection, and to determine all rights to credit memoranda 
arising on account of the erroneous payment of tax or penalty 
under this subsection. In the administration of and compliance 
with this subsection, the Department and persons who are 
subject to this subsection shall have the same rights, 
remedies, privileges, immunities, powers, and duties, shall be 
subject to the same conditions, restrictions, limitations, 
penalties, exclusions, exemptions, and definitions of terms, 
and shall employ the same modes of procedure applicable to 
this Retailers' Occupation Tax as are prescribed in Sections 
1, 2 through 2-65 (in respect to all provisions of those 
Sections other than the State rate of taxes), 2c, 2h, 2i, 3 
(except as to the disposition of taxes and penalties 
collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 
6b, 6c, 7, 8, 9, 10, 11, 12, 13, and, until January 1, 1994, 
13.5 of the Retailers' Occupation Tax Act, and, on and after 
January 1, 1994, all applicable provisions of the Uniform 
Penalty and Interest Act that are not inconsistent with this 
Act, as fully as if provisions contained in those Sections of 
the Retailers' Occupation Tax Act were set forth in this 
subsection.
    Persons subject to any tax imposed under the authority 
granted in this subsection may reimburse themselves for their 
seller's tax liability under this subsection by separately 
stating that tax as an additional charge, which charge may be 
stated in combination, in a single amount, with State taxes 
that sellers are required to collect under the Use Tax Act, 
pursuant to bracket schedules as the Department may prescribe. 
The retailer filing the return shall, at the time of filing the 
return, pay to the Department the amount of tax imposed under 
this subsection, less a discount of 1.75%, which is allowed to 
reimburse the retailer for the expenses incurred in keeping 
records, preparing and filing returns, remitting the tax, and 
supplying data to the Department on request.
    Whenever the Department determines that a refund should be 
made under this subsection to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause a warrant to be drawn for the 
amount specified and to the person named in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the Metropolitan Pier and Exposition 
Authority trust fund held by the State Treasurer as trustee 
for the Authority.
    Nothing in this subsection authorizes the Authority to 
impose a tax upon the privilege of engaging in any business 
that under the Constitution of the United States may not be 
made the subject of taxation by this State.
    The Department shall forthwith pay over to the State 
Treasurer, ex officio, as trustee for the Authority, all taxes 
and penalties collected under this subsection for deposit into 
a trust fund held outside of the State Treasury. 
    As soon as possible after the first day of each month, 
beginning January 1, 2011, upon certification of the 
Department of Revenue, the Comptroller shall order 
transferred, and the Treasurer shall transfer, to the STAR 
Bonds Revenue Fund the local sales tax increment, as defined 
in the Innovation Development and Economy Act, collected under 
this subsection during the second preceding calendar month for 
sales within a STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund, 
on or before the 25th day of each calendar month, the 
Department shall prepare and certify to the Comptroller the 
amounts to be paid under subsection (g) of this Section, which 
shall be the amounts, not including credit memoranda, 
collected under this subsection during the second preceding 
calendar month by the Department, less any amounts determined 
by the Department to be necessary for the payment of refunds, 
less 1.5% of such balance, which sum shall be deposited by the 
State Treasurer into the Tax Compliance and Administration 
Fund in the State Treasury from which it shall be appropriated 
to the Department to cover the costs of the Department in 
administering and enforcing the provisions of this subsection, 
and less any amounts that are transferred to the STAR Bonds 
Revenue Fund. Within 10 days after receipt by the Comptroller 
of the certification, the Comptroller shall cause the orders 
to be drawn for the remaining amounts, and the Treasurer shall 
administer those amounts as required in subsection (g).
    A certificate of registration issued by the Illinois 
Department of Revenue to a retailer under the Retailers' 
Occupation Tax Act shall permit the registrant to engage in a 
business that is taxed under the tax imposed under this 
subsection, and no additional registration shall be required 
under the ordinance imposing the tax or under this subsection.
    A certified copy of any ordinance imposing or 
discontinuing any tax under this subsection or effecting a 
change in the rate of that tax shall be filed with the 
Department, whereupon the Department shall proceed to 
administer and enforce this subsection on behalf of the 
Authority as of the first day of the third calendar month 
following the date of filing.
    The tax authorized to be levied under this subsection may 
be levied within all or any part of the following described 
portions of the metropolitan area:
        (1) that portion of the City of Chicago located within 
    the following area: Beginning at the point of intersection 
    of the Cook County - DuPage County line and York Road, then 
    North along York Road to its intersection with Touhy 
    Avenue, then east along Touhy Avenue to its intersection 
    with the Northwest Tollway, then southeast along the 
    Northwest Tollway to its intersection with Lee Street, 
    then south along Lee Street to Higgins Road, then south 
    and east along Higgins Road to its intersection with 
    Mannheim Road, then south along Mannheim Road to its 
    intersection with Irving Park Road, then west along Irving 
    Park Road to its intersection with the Cook County - 
    DuPage County line, then north and west along the county 
    line to the point of beginning; and
        (2) that portion of the City of Chicago located within 
    the following area: Beginning at the intersection of West 
    55th Street with Central Avenue, then east along West 55th 
    Street to its intersection with South Cicero Avenue, then 
    south along South Cicero Avenue to its intersection with 
    West 63rd Street, then west along West 63rd Street to its 
    intersection with South Central Avenue, then north along 
    South Central Avenue to the point of beginning; and
        (3) that portion of the City of Chicago located within 
    the following area: Beginning at the point 150 feet west 
    of the intersection of the west line of North Ashland 
    Avenue and the north line of West Diversey Avenue, then 
    north 150 feet, then east along a line 150 feet north of 
    the north line of West Diversey Avenue extended to the 
    shoreline of Lake Michigan, then following the shoreline 
    of Lake Michigan (including Navy Pier and all other 
    improvements fixed to land, docks, or piers) to the point 
    where the shoreline of Lake Michigan and the Adlai E. 
    Stevenson Expressway extended east to that shoreline 
    intersect, then west along the Adlai E. Stevenson 
    Expressway to a point 150 feet west of the west line of 
    South Ashland Avenue, then north along a line 150 feet 
    west of the west line of South and North Ashland Avenue to 
    the point of beginning.
    The tax authorized to be levied under this subsection may 
also be levied on food, alcoholic beverages, and soft drinks 
sold on boats and other watercraft departing from and 
returning to the shoreline of Lake Michigan (including Navy 
Pier and all other improvements fixed to land, docks, or 
piers) described in item (3).
    (c) By ordinance the Authority shall, as soon as 
practicable after July 1, 1992 (the effective date of Public 
Act 87-733), impose an occupation tax upon all hotel operators 
persons engaged in the corporate limits of the City of Chicago 
in the business of renting, leasing, or letting rooms in a 
hotel, as defined in the Hotel Operators' Occupation Tax Act, 
at a rate of 2.5% of the gross rental receipts from engaging in 
business as a hotel operator the renting, leasing, or letting 
of hotel rooms within the City of Chicago, excluding, however, 
from gross rental receipts the proceeds of renting, leasing, 
or letting of hotel rooms to permanent residents of a hotel, as 
defined in that Act. Gross rental receipts shall not include 
charges that are added on account of the liability arising 
from any tax imposed by the State or any governmental agency on 
the occupation of renting, leasing, or letting rooms in a 
hotel.
    The tax imposed by the Authority under this subsection and 
all civil penalties that may be assessed as an incident to that 
tax shall be collected and enforced by the Illinois Department 
of Revenue. The certificate of registration that is issued by 
the Department to a lessor under the Hotel Operators' 
Occupation Tax Act shall permit that registrant to engage in a 
business that is taxable under any ordinance enacted under 
this subsection without registering separately with the 
Department under that ordinance or under this subsection. The 
Department shall have full power to administer and enforce 
this subsection, to collect all taxes and penalties due under 
this subsection, to dispose of taxes and penalties so 
collected in the manner provided in this subsection, and to 
determine all rights to credit memoranda arising on account of 
the erroneous payment of tax or penalty under this subsection. 
In the administration of and compliance with this subsection, 
the Department and persons who are subject to this subsection 
shall have the same rights, remedies, privileges, immunities, 
powers, and duties, shall be subject to the same conditions, 
restrictions, limitations, penalties, and definitions of 
terms, and shall employ the same modes of procedure as are 
prescribed in the Hotel Operators' Occupation Tax Act (except 
where that Act is inconsistent with this subsection), as fully 
as if the provisions contained in the Hotel Operators' 
Occupation Tax Act were set out in this subsection.
    Whenever the Department determines that a refund should be 
made under this subsection to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause a warrant to be drawn for the 
amount specified and to the person named in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the Metropolitan Pier and Exposition 
Authority trust fund held by the State Treasurer as trustee 
for the Authority.
    Persons subject to any tax imposed under the authority 
granted in this subsection may reimburse themselves for their 
tax liability for that tax by separately stating that tax as an 
additional charge, which charge may be stated in combination, 
in a single amount, with State taxes imposed under the Hotel 
Operators' Occupation Tax Act, the municipal tax imposed under 
Section 8-3-13 of the Illinois Municipal Code, and the tax 
imposed under Section 19 of the Illinois Sports Facilities 
Authority Act.
    The person filing the return shall, at the time of filing 
the return, pay to the Department the amount of tax, less a 
discount of 2.1% or $25 per calendar year, whichever is 
greater, which is allowed to reimburse the operator for the 
expenses incurred in keeping records, preparing and filing 
returns, remitting the tax, and supplying data to the 
Department on request.
    Except as otherwise provided in this paragraph, the 
Department shall forthwith pay over to the State Treasurer, ex 
officio, as trustee for the Authority, all taxes and penalties 
collected under this subsection for deposit into a trust fund 
held outside the State Treasury. On or before the 25th day of 
each calendar month, the Department shall certify to the 
Comptroller the amounts to be paid under subsection (g) of 
this Section, which shall be the amounts (not including credit 
memoranda) collected under this subsection during the second 
preceding calendar month by the Department, less any amounts 
determined by the Department to be necessary for payment of 
refunds, less 1.5% of the remainder, which the Department 
shall transfer into the Tax Compliance and Administration 
Fund. The Department, at the time of each monthly disbursement 
to the Authority, shall prepare and certify to the State 
Comptroller the amount to be transferred into the Tax 
Compliance and Administration Fund under this subsection. 
Within 10 days after receipt by the Comptroller of the 
Department's certification, the Comptroller shall cause the 
orders to be drawn for such amounts, and the Treasurer shall 
administer the amounts distributed to the Authority as 
required in subsection (g).
    A certified copy of any ordinance imposing or 
discontinuing a tax under this subsection or effecting a 
change in the rate of that tax shall be filed with the Illinois 
Department of Revenue, whereupon the Department shall proceed 
to administer and enforce this subsection on behalf of the 
Authority as of the first day of the third calendar month 
following the date of filing.
    (d) By ordinance the Authority shall, as soon as 
practicable after July 1, 1992 (the effective date of Public 
Act 87-733), impose a tax upon all persons engaged in the 
business of renting automobiles in the metropolitan area at 
the rate of 6% of the gross receipts from that business, except 
that no tax shall be imposed on the business of renting 
automobiles for use as taxicabs or in livery service. The tax 
imposed under this subsection and all civil penalties that may 
be assessed as an incident to that tax shall be collected and 
enforced by the Illinois Department of Revenue. The 
certificate of registration issued by the Department to a 
retailer under the Retailers' Occupation Tax Act or under the 
Automobile Renting Occupation and Use Tax Act shall permit 
that person to engage in a business that is taxable under any 
ordinance enacted under this subsection without registering 
separately with the Department under that ordinance or under 
this subsection. The Department shall have full power to 
administer and enforce this subsection, to collect all taxes 
and penalties due under this subsection, to dispose of taxes 
and penalties so collected in the manner provided in this 
subsection, and to determine all rights to credit memoranda 
arising on account of the erroneous payment of tax or penalty 
under this subsection. In the administration of and compliance 
with this subsection, the Department and persons who are 
subject to this subsection shall have the same rights, 
remedies, privileges, immunities, powers, and duties, be 
subject to the same conditions, restrictions, limitations, 
penalties, and definitions of terms, and employ the same modes 
of procedure as are prescribed in Sections 2 and 3 (in respect 
to all provisions of those Sections other than the State rate 
of tax; and in respect to the provisions of the Retailers' 
Occupation Tax Act referred to in those Sections, except as to 
the disposition of taxes and penalties collected, except for 
the provision allowing retailers a deduction from the tax to 
cover certain costs, and except that credit memoranda issued 
under this subsection may not be used to discharge any State 
tax liability) of the Automobile Renting Occupation and Use 
Tax Act, as fully as if provisions contained in those Sections 
of that Act were set forth in this subsection.
    Persons subject to any tax imposed under the authority 
granted in this subsection may reimburse themselves for their 
tax liability under this subsection by separately stating that 
tax as an additional charge, which charge may be stated in 
combination, in a single amount, with State tax that sellers 
are required to collect under the Automobile Renting 
Occupation and Use Tax Act, pursuant to bracket schedules as 
the Department may prescribe.
    Whenever the Department determines that a refund should be 
made under this subsection to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause a warrant to be drawn for the 
amount specified and to the person named in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the Metropolitan Pier and Exposition 
Authority trust fund held by the State Treasurer as trustee 
for the Authority.
    Except as otherwise provided in this paragraph, the 
Department shall forthwith pay over to the State Treasurer, ex 
officio, as trustee, all taxes and penalties collected under 
this subsection for deposit into a trust fund held outside the 
State Treasury. On or before the 25th day of each calendar 
month, the Department shall certify to the Comptroller the 
amounts to be paid under subsection (g) of this Section (not 
including credit memoranda) collected under this subsection 
during the second preceding calendar month by the Department, 
less any amount determined by the Department to be necessary 
for payment of refunds, less 1.5% of the remainder, which the 
Department shall transfer into the Tax Compliance and 
Administration Fund. The Department, at the time of each 
monthly disbursement to the Authority, shall prepare and 
certify to the State Comptroller the amount to be transferred 
into the Tax Compliance and Administration Fund under this 
subsection. Within 10 days after receipt by the Comptroller of 
the Department's certification, the Comptroller shall cause 
the orders to be drawn for such amounts, and the Treasurer 
shall administer the amounts distributed to the Authority as 
required in subsection (g).
    Nothing in this subsection authorizes the Authority to 
impose a tax upon the privilege of engaging in any business 
that under the Constitution of the United States may not be 
made the subject of taxation by this State.
    A certified copy of any ordinance imposing or 
discontinuing a tax under this subsection or effecting a 
change in the rate of that tax shall be filed with the Illinois 
Department of Revenue, whereupon the Department shall proceed 
to administer and enforce this subsection on behalf of the 
Authority as of the first day of the third calendar month 
following the date of filing.
    (e) By ordinance the Authority shall, as soon as 
practicable after July 1, 1992 (the effective date of Public 
Act 87-733), impose a tax upon the privilege of using in the 
metropolitan area an automobile that is rented from a rentor 
outside Illinois and is titled or registered with an agency of 
this State's government at a rate of 6% of the rental price of 
that automobile, except that no tax shall be imposed on the 
privilege of using automobiles rented for use as taxicabs or 
in livery service. The tax shall be collected from persons 
whose Illinois address for titling or registration purposes is 
given as being in the metropolitan area. The tax shall be 
collected by the Department of Revenue for the Authority. The 
tax must be paid to the State or an exemption determination 
must be obtained from the Department of Revenue before the 
title or certificate of registration for the property may be 
issued. The tax or proof of exemption may be transmitted to the 
Department by way of the State agency with which or State 
officer with whom the tangible personal property must be 
titled or registered if the Department and that agency or 
State officer determine that this procedure will expedite the 
processing of applications for title or registration.
    The Department shall have full power to administer and 
enforce this subsection, to collect all taxes, penalties, and 
interest due under this subsection, to dispose of taxes, 
penalties, and interest so collected in the manner provided in 
this subsection, and to determine all rights to credit 
memoranda or refunds arising on account of the erroneous 
payment of tax, penalty, or interest under this subsection. In 
the administration of and compliance with this subsection, the 
Department and persons who are subject to this subsection 
shall have the same rights, remedies, privileges, immunities, 
powers, and duties, be subject to the same conditions, 
restrictions, limitations, penalties, and definitions of 
terms, and employ the same modes of procedure as are 
prescribed in Sections 2 and 4 (except provisions pertaining 
to the State rate of tax; and in respect to the provisions of 
the Use Tax Act referred to in that Section, except provisions 
concerning collection or refunding of the tax by retailers, 
except the provisions of Section 19 pertaining to claims by 
retailers, except the last paragraph concerning refunds, and 
except that credit memoranda issued under this subsection may 
not be used to discharge any State tax liability) of the 
Automobile Renting Occupation and Use Tax Act, as fully as if 
provisions contained in those Sections of that Act were set 
forth in this subsection.
    Whenever the Department determines that a refund should be 
made under this subsection to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause a warrant to be drawn for the 
amount specified and to the person named in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the Metropolitan Pier and Exposition 
Authority trust fund held by the State Treasurer as trustee 
for the Authority.
    Except as otherwise provided in this paragraph, the 
Department shall forthwith pay over to the State Treasurer, ex 
officio, as trustee, all taxes, penalties, and interest 
collected under this subsection for deposit into a trust fund 
held outside the State Treasury. On or before the 25th day of 
each calendar month, the Department shall certify to the State 
Comptroller the amounts to be paid under subsection (g) of 
this Section, which shall be the amounts (not including credit 
memoranda) collected under this subsection during the second 
preceding calendar month by the Department, less any amounts 
determined by the Department to be necessary for payment of 
refunds, less 1.5% of the remainder, which the Department 
shall transfer into the Tax Compliance and Administration 
Fund. The Department, at the time of each monthly disbursement 
to the Authority, shall prepare and certify to the State 
Comptroller the amount to be transferred into the Tax 
Compliance and Administration Fund under this subsection. 
Within 10 days after receipt by the State Comptroller of the 
Department's certification, the Comptroller shall cause the 
orders to be drawn for such amounts, and the Treasurer shall 
administer the amounts distributed to the Authority as 
required in subsection (g).
    A certified copy of any ordinance imposing or 
discontinuing a tax or effecting a change in the rate of that 
tax shall be filed with the Illinois Department of Revenue, 
whereupon the Department shall proceed to administer and 
enforce this subsection on behalf of the Authority as of the 
first day of the third calendar month following the date of 
filing.
    (f) By ordinance the Authority shall, as soon as 
practicable after July 1, 1992 (the effective date of Public 
Act 87-733), impose an occupation tax on all persons, other 
than a governmental agency, engaged in the business of 
providing ground transportation for hire to passengers in the 
metropolitan area at a rate of (i) $4 per taxi or livery 
vehicle departure with passengers for hire from commercial 
service airports in the metropolitan area, (ii) for each 
departure with passengers for hire from a commercial service 
airport in the metropolitan area in a bus or van operated by a 
person other than a person described in item (iii): $18 per bus 
or van with a capacity of 1-12 passengers, $36 per bus or van 
with a capacity of 13-24 passengers, and $54 per bus or van 
with a capacity of over 24 passengers, and (iii) for each 
departure with passengers for hire from a commercial service 
airport in the metropolitan area in a bus or van operated by a 
person regulated by the Interstate Commerce Commission or 
Illinois Commerce Commission, operating scheduled service from 
the airport, and charging fares on a per passenger basis: $2 
per passenger for hire in each bus or van. The term "commercial 
service airports" means those airports receiving scheduled 
passenger service and enplaning more than 100,000 passengers 
per year.
    In the ordinance imposing the tax, the Authority may 
provide for the administration and enforcement of the tax and 
the collection of the tax from persons subject to the tax as 
the Authority determines to be necessary or practicable for 
the effective administration of the tax. The Authority may 
enter into agreements as it deems appropriate with any 
governmental agency providing for that agency to act as the 
Authority's agent to collect the tax.
    In the ordinance imposing the tax, the Authority may 
designate a method or methods for persons subject to the tax to 
reimburse themselves for the tax liability arising under the 
ordinance (i) by separately stating the full amount of the tax 
liability as an additional charge to passengers departing the 
airports, (ii) by separately stating one-half of the tax 
liability as an additional charge to both passengers departing 
from and to passengers arriving at the airports, or (iii) by 
some other method determined by the Authority.
    All taxes, penalties, and interest collected under any 
ordinance adopted under this subsection, less any amounts 
determined to be necessary for the payment of refunds and less 
the taxes, penalties, and interest attributable to any 
increase in the rate of tax authorized by Public Act 96-898, 
shall be paid forthwith to the State Treasurer, ex officio, 
for deposit into a trust fund held outside the State Treasury 
and shall be administered by the State Treasurer as provided 
in subsection (g) of this Section. All taxes, penalties, and 
interest attributable to any increase in the rate of tax 
authorized by Public Act 96-898 shall be paid by the State 
Treasurer as follows: 25% for deposit into the Convention 
Center Support Fund, to be used by the Village of Rosemont for 
the repair, maintenance, and improvement of the Donald E. 
Stephens Convention Center and for debt service on debt 
instruments issued for those purposes by the village and 75% 
to the Authority to be used for grants to an organization 
meeting the qualifications set out in Section 5.6 of this Act, 
provided the Metropolitan Pier and Exposition Authority has 
entered into a marketing agreement with such an organization. 
    (g) Amounts deposited from the proceeds of taxes imposed 
by the Authority under subsections (b), (c), (d), (e), and (f) 
of this Section and amounts deposited under Section 19 of the 
Illinois Sports Facilities Authority Act shall be held in a 
trust fund outside the State Treasury and, other than the 
amounts transferred into the Tax Compliance and Administration 
Fund under subsections (b), (c), (d), and (e), shall be 
administered by the Treasurer as follows: 
        (1) An amount necessary for the payment of refunds 
    with respect to those taxes shall be retained in the trust 
    fund and used for those payments.
        (2) On July 20 and on the 20th of each month 
    thereafter, provided that the amount requested in the 
    annual certificate of the Chairman of the Authority filed 
    under Section 8.25f of the State Finance Act has been 
    appropriated for payment to the Authority, 1/8 of the 
    local tax transfer amount, together with any cumulative 
    deficiencies in the amounts transferred into the McCormick 
    Place Expansion Project Fund under this subparagraph (2) 
    during the fiscal year for which the certificate has been 
    filed, shall be transferred from the trust fund into the 
    McCormick Place Expansion Project Fund in the State 
    treasury until 100% of the local tax transfer amount has 
    been so transferred. "Local tax transfer amount" shall 
    mean the amount requested in the annual certificate, minus 
    the reduction amount. "Reduction amount" shall mean $41.7 
    million in fiscal year 2011, $36.7 million in fiscal year 
    2012, $36.7 million in fiscal year 2013, $36.7 million in 
    fiscal year 2014, and $31.7 million in each fiscal year 
    thereafter until 2035, provided that the reduction amount 
    shall be reduced by (i) the amount certified by the 
    Authority to the State Comptroller and State Treasurer 
    under Section 8.25 of the State Finance Act, as amended, 
    with respect to that fiscal year and (ii) in any fiscal 
    year in which the amounts deposited in the trust fund 
    under this Section exceed $343.3 million, exclusive of 
    amounts set aside for refunds and for the reserve account, 
    one dollar for each dollar of the deposits in the trust 
    fund above $343.3 million with respect to that year, 
    exclusive of amounts set aside for refunds and for the 
    reserve account.
        (3) On July 20, 2010, the Comptroller shall certify to 
    the Governor, the Treasurer, and the Chairman of the 
    Authority the 2010 deficiency amount, which means the 
    cumulative amount of transfers that were due from the 
    trust fund to the McCormick Place Expansion Project Fund 
    in fiscal years 2008, 2009, and 2010 under Section 13(g) 
    of this Act, as it existed prior to May 27, 2010 (the 
    effective date of Public Act 96-898), but not made. On 
    July 20, 2011 and on July 20 of each year through July 20, 
    2014, the Treasurer shall calculate for the previous 
    fiscal year the surplus revenues in the trust fund and pay 
    that amount to the Authority. On July 20, 2015 and on July 
    20 of each year thereafter to and including July 20, 2017, 
    as long as bonds and notes issued under Section 13.2 or 
    bonds and notes issued to refund those bonds and notes are 
    outstanding, the Treasurer shall calculate for the 
    previous fiscal year the surplus revenues in the trust 
    fund and pay one-half of that amount to the State 
    Treasurer for deposit into the General Revenue Fund until 
    the 2010 deficiency amount has been paid and shall pay the 
    balance of the surplus revenues to the Authority. On July 
    20, 2018 and on July 20 of each year thereafter, the 
    Treasurer shall calculate for the previous fiscal year the 
    surplus revenues in the trust fund and pay all of such 
    surplus revenues to the State Treasurer for deposit into 
    the General Revenue Fund until the 2010 deficiency amount 
    has been paid. After the 2010 deficiency amount has been 
    paid, the Treasurer shall pay the balance of the surplus 
    revenues to the Authority. "Surplus revenues" means the 
    amounts remaining in the trust fund on June 30 of the 
    previous fiscal year (A) after the State Treasurer has set 
    aside in the trust fund (i) amounts retained for refunds 
    under subparagraph (1) and (ii) any amounts necessary to 
    meet the reserve account amount and (B) after the State 
    Treasurer has transferred from the trust fund to the 
    General Revenue Fund 100% of any post-2010 deficiency 
    amount. "Reserve account amount" means $15 million in 
    fiscal year 2011 and $30 million in each fiscal year 
    thereafter. The reserve account amount shall be set aside 
    in the trust fund and used as a reserve to be transferred 
    to the McCormick Place Expansion Project Fund in the event 
    the proceeds of taxes imposed under this Section 13 are 
    not sufficient to fund the transfer required in 
    subparagraph (2). "Post-2010 deficiency amount" means any 
    deficiency in transfers from the trust fund to the 
    McCormick Place Expansion Project Fund with respect to 
    fiscal years 2011 and thereafter. It is the intention of 
    this subparagraph (3) that no surplus revenues shall be 
    paid to the Authority with respect to any year in which a 
    post-2010 deficiency amount has not been satisfied by the 
    Authority. 
    Moneys received by the Authority as surplus revenues may 
be used (i) for the purposes of paying debt service on the 
bonds and notes issued by the Authority, including early 
redemption of those bonds or notes, (ii) for the purposes of 
repair, replacement, and improvement of the grounds, 
buildings, and facilities of the Authority, and (iii) for the 
corporate purposes of the Authority in fiscal years 2011 
through 2015 in an amount not to exceed $20,000,000 annually 
or $80,000,000 total, which amount shall be reduced $0.75 for 
each dollar of the receipts of the Authority in that year from 
any contract entered into with respect to naming rights at 
McCormick Place under Section 5(m) of this Act. When bonds and 
notes issued under Section 13.2, or bonds or notes issued to 
refund those bonds and notes, are no longer outstanding, the 
balance in the trust fund shall be paid to the Authority. 
    (h) The ordinances imposing the taxes authorized by this 
Section shall be repealed when bonds and notes issued under 
Section 13.2 or bonds and notes issued to refund those bonds 
and notes are no longer outstanding.
(Source: P.A. 100-23, Article 5, Section 5-35, eff. 7-6-17; 
100-23, Article 35, Section 35-25, eff. 7-6-17; 100-587, eff. 
6-4-18; 100-863, eff. 8-14-18; 101-636, eff. 6-10-20.)
 
    Section 65-20. The Illinois Sports Facilities Authority 
Act is amended by changing Section 19 as follows:
 
    (70 ILCS 3205/19)  (from Ch. 85, par. 6019)
    Sec. 19. Tax. The Authority may impose an occupation tax 
upon all hotel operators persons engaged in the City of 
Chicago in the business of renting, leasing or letting rooms 
in a hotel, as defined in The Hotel Operators' Occupation Tax 
Act, at a rate not to exceed 2% of the gross rental receipts 
from engaging in business as a hotel operator the renting, 
leasing or letting of hotel rooms located within the City of 
Chicago, excluding, however, from gross rental receipts, the 
proceeds of such renting, leasing or letting of hotel rooms to 
permanent residents of a that hotel and proceeds from the tax 
imposed under subsection (c) of Section 13 of the Metropolitan 
Pier and Exposition Authority Act.
    The tax imposed by the Authority pursuant to this Section 
and all civil penalties that may be assessed as an incident 
thereof shall be collected and enforced by the State 
Department of Revenue. The certificate of registration which 
is issued by the Department to a lessor under The Hotel 
Operators' Occupation Tax Act shall permit such registrant to 
engage in a business which is taxable under any ordinance or 
resolution enacted pursuant to this Section without 
registering separately with the Department under such 
ordinance or resolution or under this Section. The Department 
shall have full power to administer and enforce this Section; 
to collect all taxes and penalties due hereunder; to dispose 
of taxes and penalties so collected in the manner provided in 
this Section, and to determine all rights to credit memoranda, 
arising on account of the erroneous payment of tax or penalty 
hereunder. In the administration of, and compliance with, this 
Section, the Department and persons who are subject to this 
Section shall have the same rights, remedies, privileges, 
immunities, powers and duties, and be subject to the same 
conditions, restrictions, limitations, penalties and 
definitions of terms, and employ the same modes of procedure, 
as are prescribed in The Hotel Operators' Occupation Tax Act 
(except where that Act is inconsistent herewith), as the same 
is now or may hereafter be amended, as fully as if the 
provisions contained in The Hotel Operators' Occupation Tax 
Act were set forth herein.
    Whenever the Department determines that a refund should be 
made under this Section to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the warrant to be drawn for the 
amount specified, and to the person named, in such 
notification from the Department. Such refund shall be paid by 
the State Treasurer out of the amounts held by the State 
Treasurer as trustee for the Authority.
    Persons subject to any tax imposed pursuant to authority 
granted by this Section may reimburse themselves for their tax 
liability for such tax by separately stating such tax as an 
additional charge, which charge may be stated in combination, 
in a single amount, with State tax imposed under The Hotel 
Operators' Occupation Tax Act, the municipal tax imposed under 
Section 8-3-13 of the Illinois Municipal Code, and the tax 
imposed under Section 13 of the Metropolitan Pier and 
Exposition Authority Act.
    The Department shall forthwith pay over to the State 
Treasurer, ex-officio, as trustee for the Authority, all taxes 
and penalties collected hereunder for deposit in a trust fund 
outside the State Treasury. On or before the 25th day of each 
calendar month, the Department shall certify to the 
Comptroller the amount to be paid to or on behalf of the 
Authority from amounts collected hereunder by the Department, 
and deposited into such trust fund during the second preceding 
calendar month. The amount to be paid to or on behalf of the 
Authority shall be the amount (not including credit memoranda) 
collected hereunder during such second preceding calendar 
month by the Department, less an amount equal to the amount of 
refunds authorized during such second preceding calendar month 
by the Department on behalf of the Authority, and less 4% of 
such balance, which sum shall be retained by the State 
Treasurer to cover the costs incurred by the Department in 
administering and enforcing the provisions of this Section, as 
provided herein. Each such monthly certification by the 
Department shall also certify to the Comptroller the amount to 
be so retained by the State Treasurer for payment into the 
General Revenue Fund of the State Treasury.
    Each monthly certification by the Department shall 
certify, of the amount paid to or on behalf of the Authority, 
(i) the portion to be paid to the Authority, (ii) the portion 
to be paid into the General Revenue Fund of the State Treasury 
on behalf of the Authority as repayment of amounts advanced to 
the Authority pursuant to appropriation from the Illinois 
Sports Facilities Fund.
    With respect to each State fiscal year, of the total 
amount to be paid to or on behalf of the Authority, the 
Department shall certify that payments shall first be made 
directly to the Authority in an amount equal to any difference 
between the annual amount certified by the Chairman of the 
Authority pursuant to Section 8.25-4 of the State Finance Act 
and the amount appropriated to the Authority from the Illinois 
Sports Facilities Fund. Next, the Department shall certify 
that payment shall be made into the General Revenue Fund of the 
State Treasury in an amount equal to the difference between 
(i) the lesser of (x) the amount appropriated from the 
Illinois Sports Facilities Fund to the Authority and (y) the 
annual amount certified by the Chairman of the Authority 
pursuant to Section 8.25-4 of the State Finance Act and (ii) 
$10,000,000. The Department shall certify that all additional 
amounts shall be paid to the Authority and used for its 
corporate purposes.
    Within 10 days after receipt, by the Comptroller, of the 
Department's monthly certification of amounts to be paid to or 
on behalf of the Authority and amounts to be paid into the 
General Revenue Fund, the Comptroller shall cause the warrants 
to be drawn for the respective amounts in accordance with the 
directions contained in such certification.
    Amounts collected by the Department and paid to the 
Authority pursuant to this Section shall be used for the 
corporate purposes of the Authority. On June 15, 1992 and on 
each June 15 thereafter, the Authority shall repay to the 
State Treasurer all amounts paid to it under this Section and 
otherwise remaining available to the Authority after providing 
for (i) payment of principal and interest on, and other 
payments related to, its obligations issued or to be issued 
under Section 13 of the Act, including any deposits required 
to reserve funds created under any indenture or resolution 
authorizing issuance of the obligations and payments to 
providers of credit enhancement, (ii) payment of obligations 
under the provisions of any management agreement with respect 
to a facility or facilities owned by the Authority or of any 
assistance agreement with respect to any facility for which 
financial assistance is provided under this Act, and payment 
of other capital and operating expenses of the Authority, 
including any deposits required to reserve funds created for 
repair and replacement of capital assets and to meet the 
obligations of the Authority under any management agreement or 
assistance agreement. Amounts repaid by the Authority to the 
State Treasurer hereunder shall be treated as repayment of 
amounts deposited into the Illinois Sports Facilities Fund and 
credited to the Subsidy Account and used for the corporate 
purposes of the Authority. The State Treasurer shall deposit 
$5,000,000 of the amount received into the General Revenue 
Fund; thereafter, at the beginning of each fiscal year the 
State Treasurer shall certify to the State Comptroller for all 
prior fiscal years the cumulative amount of any deficiencies 
in repayments to the City of Chicago of amounts in the Local 
Government Distributive Fund that would otherwise have been 
allocated to the City of Chicago under the State Revenue 
Sharing Act but instead were paid into the General Revenue 
Fund under Section 6 of the Hotel Operators' Occupation Tax 
Act and that have not been reimbursed, and the Comptroller 
shall, during the fiscal year at the beginning of which the 
certification was made, cause warrants to be drawn from the 
amount received for the repayment of that cumulative amount to 
the City of Chicago until that cumulative amount has been 
fully reimbursed; thereafter, the State Treasurer shall 
deposit the balance of the amount received into the trust fund 
established outside the State Treasury under subsection (g) of 
Section 13 of the Metropolitan Pier and Exposition Authority 
Act.
    Nothing in this Section shall be construed to authorize 
the Authority to impose a tax upon the privilege of engaging in 
any business which under the constitution of the United States 
may not be made the subject of taxation by this State.
    An ordinance or resolution imposing or discontinuing a tax 
hereunder or effecting a change in the rate thereof shall be 
effective on the first day of the second calendar month next 
following the month in which the ordinance or resolution is 
passed.
    If the Authority levies a tax authorized by this Section 
it shall transmit to the Department of Revenue not later than 5 
days after the adoption of the ordinance or resolution a 
certified copy of the ordinance or resolution imposing such 
tax whereupon the Department of Revenue shall proceed to 
administer and enforce this Section on behalf of the 
Authority. Upon a change in rate of a tax levied hereunder, or 
upon the discontinuance of the tax, the Authority shall not 
later than 5 days after the effective date of the ordinance or 
resolution discontinuing the tax or effecting a change in rate 
transmit to the Department of Revenue a certified copy of the 
ordinance or resolution effecting such change or 
discontinuance.
(Source: P.A. 91-935, eff. 6-1-01.)
 
ARTICLE 70. 

 
    Section 70-5. The Motor Fuel Tax Law is amended by 
changing Section 2a as follows:
 
    (35 ILCS 505/2a)  (from Ch. 120, par. 418a)
    Sec. 2a. Except as hereinafter provided, on and after 
January 1, 1990 and before January 1, 2030 January 1, 2025, a 
tax of three-tenths of a cent per gallon is imposed upon the 
privilege of being a receiver in this State of fuel for sale or 
use. Beginning January 1, 2021, this tax is not imposed on 
sales of aviation fuel for so long as the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
binding on the State. 
    The tax shall be paid by the receiver in this State who 
first sells or uses fuel. In the case of a sale, the tax shall 
be stated as a separate item on the invoice.
    For the purpose of the tax imposed by this Section, being a 
receiver of "motor fuel" as defined by Section 1.1 of this Act, 
and aviation fuels, home heating oil and kerosene, but 
excluding liquified petroleum gases, is subject to tax without 
regard to whether the fuel is intended to be used for operation 
of motor vehicles on the public highways and waters. However, 
no such tax shall be imposed upon the importation or receipt of 
aviation fuels and kerosene at airports with over 300,000 
operations per year, for years prior to 1991, and over 170,000 
operations per year beginning in 1991, located in a city of 
more than 1,000,000 inhabitants for sale to or use by holders 
of certificates of public convenience and necessity or foreign 
air carrier permits, issued by the United States Department of 
Transportation, and their air carrier affiliates, or upon the 
importation or receipt of aviation fuels and kerosene at 
facilities owned or leased by those certificate or permit 
holders and used in their activities at an airport described 
above. In addition, no such tax shall be imposed upon the 
importation or receipt of diesel fuel or liquefied natural gas 
sold to or used by a rail carrier registered pursuant to 
Section 18c-7201 of the Illinois Vehicle Code or otherwise 
recognized by the Illinois Commerce Commission as a rail 
carrier, to the extent used directly in railroad operations. 
In addition, no such tax shall be imposed when the sale is made 
with delivery to a purchaser outside this State or when the 
sale is made to a person holding a valid license as a receiver. 
In addition, no tax shall be imposed upon diesel fuel or 
liquefied natural gas consumed or used in the operation of 
ships, barges, or vessels, that are used primarily in or for 
the transportation of property in interstate commerce for hire 
on rivers bordering on this State, if the diesel fuel or 
liquefied natural gas is delivered by a licensed receiver to 
the purchaser's barge, ship, or vessel while it is afloat upon 
that bordering river. A specific notation thereof shall be 
made on the invoices or sales slips covering each sale.
(Source: P.A. 100-9, eff. 7-1-17; 101-604, eff. 12-13-19.)
 
    Section 70-10. The Environmental Impact Fee Law is amended 
by changing Section 390 as follows:
 
    (415 ILCS 125/390)
    (Section scheduled to be repealed on January 1, 2025)
    Sec. 390. Repeal. This Article is repealed on January 1, 
2030 January 1, 2025.
(Source: P.A. 96-161, eff. 8-10-09.)
 
ARTICLE 75. 

 
    Section 75-5. The Use Tax Act is amended by changing 
Sections 2, 3, 3-5, 3-10, 3-55, and 9 and by adding Section 
1.05 as follows:
 
    (35 ILCS 105/1.05 new)
    Sec. 1.05. Legislative intent; leases. It is the intent of 
the General Assembly in enacting this amendatory Act of the 
103rd General Assembly to apply the tax imposed under this 
Act, except as otherwise provided in this Act, to the 
privilege of using in this State tangible personal property, 
other than 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, leased at retail from a retailer, for 
leases in effect, entered into, or renewed on or after January 
1, 2025.
 
    (35 ILCS 105/2)  (from Ch. 120, par. 439.2)
    Sec. 2. Definitions.
    "Use" means the exercise by any person of any right or 
power over tangible personal property incident to the 
ownership of that property, or, on and after January 1, 2025, 
incident to the possession or control of, the right to possess 
or control, or a license to use that property through a lease, 
except that it does not include the sale of such property in 
any form as tangible personal property in the regular course 
of business to the extent that such property is not first 
subjected to a use for which it was purchased, and does not 
include the use of such property by its owner for 
demonstration purposes: Provided that the property purchased 
is deemed to be purchased for the purpose of resale, despite 
first being used, to the extent to which it is resold as an 
ingredient of an intentionally produced product or by-product 
of manufacturing. "Use" does not mean the demonstration use or 
interim use of tangible personal property by a retailer before 
he sells that tangible personal property. On and after January 
1, 2025, the lease of tangible personal property to a lessee by 
a retailer who is subject to tax on lease receipts under this 
amendatory Act of the 103rd General Assembly does not qualify 
as demonstration use or interim use of that property. For 
watercraft or aircraft, if the period of demonstration use or 
interim use by the retailer exceeds 18 months, the retailer 
shall pay on the retailers' original cost price the tax 
imposed by this Act, and no credit for that tax is permitted if 
the watercraft or aircraft is subsequently sold by the 
retailer. "Use" does not mean the physical incorporation of 
tangible personal property, to the extent not first subjected 
to a use for which it was purchased, as an ingredient or 
constituent, into other tangible personal property (a) which 
is sold in the regular course of business or (b) which the 
person incorporating such ingredient or constituent therein 
has undertaken at the time of such purchase to cause to be 
transported in interstate commerce to destinations outside the 
State of Illinois: Provided that the property purchased is 
deemed to be purchased for the purpose of resale, despite 
first being used, to the extent to which it is resold as an 
ingredient of an intentionally produced product or by-product 
of manufacturing.
    "Lease" means a transfer of the possession or control of, 
the right to possess or control, or a license to use, but not 
title to, tangible personal property for a fixed or 
indeterminate term for consideration, regardless of the name 
by which the transaction is called. "Lease" does not include a 
lease entered into merely as a security agreement that does 
not involve a transfer of possession or control from the 
lessor to the lessee. 
    On and after January 1, 2025, the term "sale", when used in 
this Act, includes a lease. 
    "Watercraft" means a Class 2, Class 3, or Class 4 
watercraft as defined in Section 3-2 of the Boat Registration 
and Safety Act, a personal watercraft, or any boat equipped 
with an inboard motor.
    "Purchase at retail" means the acquisition of the 
ownership of, the or title to, the possession or control of, 
the right to possess or control, or a license to use, tangible 
personal property through a sale at retail.
    "Purchaser" means anyone who, through a sale at retail, 
acquires the ownership of, the title to, the possession or 
control of, the right to possess or control, or a license to 
use, tangible personal property for a valuable consideration.
    "Sale at retail" means any transfer of the ownership of or 
title to tangible personal property to a purchaser, for the 
purpose of use, and not for the purpose of resale in any form 
as tangible personal property to the extent not first 
subjected to a use for which it was purchased, for a valuable 
consideration: Provided that the property purchased is deemed 
to be purchased for the purpose of resale, despite first being 
used, to the extent to which it is resold as an ingredient of 
an intentionally produced product or by-product of 
manufacturing. For this purpose, slag produced as an incident 
to manufacturing pig iron or steel and sold is considered to be 
an intentionally produced by-product of manufacturing. "Sale 
at retail" includes any such transfer made for resale unless 
made in compliance with Section 2c of the Retailers' 
Occupation Tax Act, as incorporated by reference into Section 
12 of this Act. Transactions whereby the possession of the 
property is transferred but the seller retains the title as 
security for payment of the selling price are sales.
    "Sale at retail" shall also be construed to include any 
Illinois florist's sales transaction in which the purchase 
order is received in Illinois by a florist and the sale is for 
use or consumption, but the Illinois florist has a florist in 
another state deliver the property to the purchaser or the 
purchaser's donee in such other state.
    Nonreusable tangible personal property that is used by 
persons engaged in the business of operating a restaurant, 
cafeteria, or drive-in is a sale for resale when it is 
transferred to customers in the ordinary course of business as 
part of the sale of food or beverages and is used to deliver, 
package, or consume food or beverages, regardless of where 
consumption of the food or beverages occurs. Examples of those 
items include, but are not limited to nonreusable, paper and 
plastic cups, plates, baskets, boxes, sleeves, buckets or 
other containers, utensils, straws, placemats, napkins, doggie 
bags, and wrapping or packaging materials that are transferred 
to customers as part of the sale of food or beverages in the 
ordinary course of business.
    The purchase, employment and transfer of such tangible 
personal property as newsprint and ink for the primary purpose 
of conveying news (with or without other information) is not a 
purchase, use or sale of tangible personal property.
    "Selling price" means the consideration for a sale valued 
in money whether received in money or otherwise, including 
cash, credits, property other than as hereinafter provided, 
and services, but, prior to January 1, 2020 and beginning 
again on January 1, 2022, not including the value of or credit 
given for traded-in tangible personal property where the item 
that is traded-in is of like kind and character as that which 
is being sold; beginning January 1, 2020 and until January 1, 
2022, "selling price" includes the portion of the value of or 
credit given for traded-in motor vehicles of the First 
Division as defined in Section 1-146 of the Illinois Vehicle 
Code of like kind and character as that which is being sold 
that exceeds $10,000. "Selling price" shall be determined 
without any deduction on account of the cost of the property 
sold, the cost of materials used, labor or service cost or any 
other expense whatsoever, but does not include interest or 
finance charges which appear as separate items on the bill of 
sale or sales contract nor charges that are added to prices by 
sellers on account of the seller's tax liability under the 
Retailers' Occupation Tax Act, or on account of the seller's 
duty to collect, from the purchaser, the tax that is imposed by 
this Act, or, except as otherwise provided with respect to any 
cigarette tax imposed by a home rule unit, on account of the 
seller's tax liability under any local occupation tax 
administered by the Department, or, except as otherwise 
provided with respect to any cigarette tax imposed by a home 
rule unit on account of the seller's duty to collect, from the 
purchasers, the tax that is imposed under any local use tax 
administered by the Department. Effective December 1, 1985, 
"selling price" shall include charges that are added to prices 
by sellers on account of the seller's tax liability under the 
Cigarette Tax Act, on account of the seller's duty to collect, 
from the purchaser, the tax imposed under the Cigarette Use 
Tax Act, and on account of the seller's duty to collect, from 
the purchaser, any cigarette tax imposed by a home rule unit.
    The provisions of this paragraph, which provides only for 
an alternative meaning of "selling price" with respect to the 
sale of certain motor vehicles incident to the contemporaneous 
lease of those motor vehicles, continue in effect and are not 
changed by the tax on leases implemented by this amendatory 
Act of the 103rd General Assembly. Notwithstanding any law to 
the contrary, for any motor vehicle, as defined in Section 
1-146 of the Vehicle Code, that is sold on or after January 1, 
2015 for the purpose of leasing the vehicle for a defined 
period that is longer than one year and (1) is a motor vehicle 
of the second division that: (A) is a self-contained motor 
vehicle designed or permanently converted to provide living 
quarters for recreational, camping, or travel use, with direct 
walk through access to the living quarters from the driver's 
seat; (B) is of the van configuration designed for the 
transportation of not less than 7 nor more than 16 passengers; 
or (C) has a gross vehicle weight rating of 8,000 pounds or 
less or (2) is a motor vehicle of the first division, "selling 
price" or "amount of sale" means the consideration received by 
the lessor pursuant to the lease contract, including amounts 
due at lease signing and all monthly or other regular payments 
charged over the term of the lease. Also included in the 
selling price is any amount received by the lessor from the 
lessee for the leased vehicle that is not calculated at the 
time the lease is executed, including, but not limited to, 
excess mileage charges and charges for excess wear and tear. 
For sales that occur in Illinois, with respect to any amount 
received by the lessor from the lessee for the leased vehicle 
that is not calculated at the time the lease is executed, the 
lessor who purchased the motor vehicle does not incur the tax 
imposed by the Use Tax Act on those amounts, and the retailer 
who makes the retail sale of the motor vehicle to the lessor is 
not required to collect the tax imposed by this Act or to pay 
the tax imposed by the Retailers' Occupation Tax Act on those 
amounts. However, the lessor who purchased the motor vehicle 
assumes the liability for reporting and paying the tax on 
those amounts directly to the Department in the same form 
(Illinois Retailers' Occupation Tax, and local retailers' 
occupation taxes, if applicable) in which the retailer would 
have reported and paid such tax if the retailer had accounted 
for the tax to the Department. For amounts received by the 
lessor from the lessee that are not calculated at the time the 
lease is executed, the lessor must file the return and pay the 
tax to the Department by the due date otherwise required by 
this Act for returns other than transaction returns. If the 
retailer is entitled under this Act to a discount for 
collecting and remitting the tax imposed under this Act to the 
Department with respect to the sale of the motor vehicle to the 
lessor, then the right to the discount provided in this Act 
shall be transferred to the lessor with respect to the tax paid 
by the lessor for any amount received by the lessor from the 
lessee for the leased vehicle that is not calculated at the 
time the lease is executed; provided that the discount is only 
allowed if the return is timely filed and for amounts timely 
paid. The "selling price" of a motor vehicle that is sold on or 
after January 1, 2015 for the purpose of leasing for a defined 
period of longer than one year shall not be reduced by the 
value of or credit given for traded-in tangible personal 
property owned by the lessor, nor shall it be reduced by the 
value of or credit given for traded-in tangible personal 
property owned by the lessee, regardless of whether the 
trade-in value thereof is assigned by the lessee to the 
lessor. In the case of a motor vehicle that is sold for the 
purpose of leasing for a defined period of longer than one 
year, the sale occurs at the time of the delivery of the 
vehicle, regardless of the due date of any lease payments. A 
lessor who incurs a Retailers' Occupation Tax liability on the 
sale of a motor vehicle coming off lease may not take a credit 
against that liability for the Use Tax the lessor paid upon the 
purchase of the motor vehicle (or for any tax the lessor paid 
with respect to any amount received by the lessor from the 
lessee for the leased vehicle that was not calculated at the 
time the lease was executed) if the selling price of the motor 
vehicle at the time of purchase was calculated using the 
definition of "selling price" as defined in this paragraph. 
Notwithstanding any other provision of this Act to the 
contrary, lessors shall file all returns and make all payments 
required under this paragraph to the Department by electronic 
means in the manner and form as required by the Department. 
This paragraph does not apply to leases of motor vehicles for 
which, at the time the lease is entered into, the term of the 
lease is not a defined period, including leases with a defined 
initial period with the option to continue the lease on a 
month-to-month or other basis beyond the initial defined 
period. 
    The phrase "like kind and character" shall be liberally 
construed (including but not limited to any form of motor 
vehicle for any form of motor vehicle, or any kind of farm or 
agricultural implement for any other kind of farm or 
agricultural implement), while not including a kind of item 
which, if sold at retail by that retailer, would be exempt from 
retailers' occupation tax and use tax as an isolated or 
occasional sale.
    "Department" means the Department of Revenue.
    "Person" means any natural individual, firm, partnership, 
association, joint stock company, joint adventure, public or 
private corporation, limited liability company, or a receiver, 
executor, trustee, guardian or other representative appointed 
by order of any court.
    "Retailer" means and includes every person engaged in the 
business of making sales, including, on and after January 1, 
2025, leases, at retail as defined in this Section. With 
respect to leases, a "retailer" also means a "lessor", except 
as otherwise provided in this Act. 
    A person who holds himself or herself out as being engaged 
(or who habitually engages) in selling tangible personal 
property at retail is a retailer hereunder with respect to 
such sales (and not primarily in a service occupation) 
notwithstanding the fact that such person designs and produces 
such tangible personal property on special order for the 
purchaser and in such a way as to render the property of value 
only to such purchaser, if such tangible personal property so 
produced on special order serves substantially the same 
function as stock or standard items of tangible personal 
property that are sold at retail.
    A person whose activities are organized and conducted 
primarily as a not-for-profit service enterprise, and who 
engages in selling tangible personal property at retail 
(whether to the public or merely to members and their guests) 
is a retailer with respect to such transactions, excepting 
only a person organized and operated exclusively for 
charitable, religious or educational purposes either (1), to 
the extent of sales by such person to its members, students, 
patients or inmates of tangible personal property to be used 
primarily for the purposes of such person, or (2), to the 
extent of sales by such person of tangible personal property 
which is not sold or offered for sale by persons organized for 
profit. The selling of school books and school supplies by 
schools at retail to students is not "primarily for the 
purposes of" the school which does such selling. This 
paragraph does not apply to nor subject to taxation occasional 
dinners, social or similar activities of a person organized 
and operated exclusively for charitable, religious or 
educational purposes, whether or not such activities are open 
to the public.
    A person who is the recipient of a grant or contract under 
Title VII of the Older Americans Act of 1965 (P.L. 92-258) and 
serves meals to participants in the federal Nutrition Program 
for the Elderly in return for contributions established in 
amount by the individual participant pursuant to a schedule of 
suggested fees as provided for in the federal Act is not a 
retailer under this Act with respect to such transactions.
    Persons who engage in the business of transferring 
tangible personal property upon the redemption of trading 
stamps are retailers hereunder when engaged in such business.
    The isolated or occasional sale of tangible personal 
property at retail by a person who does not hold himself out as 
being engaged (or who does not habitually engage) in selling 
such tangible personal property at retail or a sale through a 
bulk vending machine does not make such person a retailer 
hereunder. However, any person who is engaged in a business 
which is not subject to the tax imposed by the Retailers' 
Occupation Tax Act because of involving the sale of or a 
contract to sell real estate or a construction contract to 
improve real estate, but who, in the course of conducting such 
business, transfers tangible personal property to users or 
consumers in the finished form in which it was purchased, and 
which does not become real estate, under any provision of a 
construction contract or real estate sale or real estate sales 
agreement entered into with some other person arising out of 
or because of such nontaxable business, is a retailer to the 
extent of the value of the tangible personal property so 
transferred. If, in such transaction, a separate charge is 
made for the tangible personal property so transferred, the 
value of such property, for the purposes of this Act, is the 
amount so separately charged, but not less than the cost of 
such property to the transferor; if no separate charge is 
made, the value of such property, for the purposes of this Act, 
is the cost to the transferor of such tangible personal 
property.
    "Retailer maintaining a place of business in this State", 
or any like term, means and includes any of the following 
retailers:
        (1) A retailer having or maintaining within this 
    State, directly or by a subsidiary, an office, 
    distribution house, sales house, warehouse or other place 
    of business, or any agent or other representative 
    operating within this State under the authority of the 
    retailer or its subsidiary, irrespective of whether such 
    place of business or agent or other representative is 
    located here permanently or temporarily, or whether such 
    retailer or subsidiary is licensed to do business in this 
    State. However, the ownership of property that is located 
    at the premises of a printer with which the retailer has 
    contracted for printing and that consists of the final 
    printed product, property that becomes a part of the final 
    printed product, or copy from which the printed product is 
    produced shall not result in the retailer being deemed to 
    have or maintain an office, distribution house, sales 
    house, warehouse, or other place of business within this 
    State.
        (1.1) A retailer having a contract with a person 
    located in this State under which the person, for a 
    commission or other consideration based upon the sale of 
    tangible personal property by the retailer, directly or 
    indirectly refers potential customers to the retailer by 
    providing to the potential customers a promotional code or 
    other mechanism that allows the retailer to track 
    purchases referred by such persons. Examples of mechanisms 
    that allow the retailer to track purchases referred by 
    such persons include but are not limited to the use of a 
    link on the person's Internet website, promotional codes 
    distributed through the person's hand-delivered or mailed 
    material, and promotional codes distributed by the person 
    through radio or other broadcast media. The provisions of 
    this paragraph (1.1) shall apply only if the cumulative 
    gross receipts from sales of tangible personal property by 
    the retailer to customers who are referred to the retailer 
    by all persons in this State under such contracts exceed 
    $10,000 during the preceding 4 quarterly periods ending on 
    the last day of March, June, September, and December. A 
    retailer meeting the requirements of this paragraph (1.1) 
    shall be presumed to be maintaining a place of business in 
    this State but may rebut this presumption by submitting 
    proof that the referrals or other activities pursued 
    within this State by such persons were not sufficient to 
    meet the nexus standards of the United States Constitution 
    during the preceding 4 quarterly periods.
        (1.2) Beginning July 1, 2011, a retailer having a 
    contract with a person located in this State under which:
            (A) the retailer sells the same or substantially 
        similar line of products as the person located in this 
        State and does so using an identical or substantially 
        similar name, trade name, or trademark as the person 
        located in this State; and
            (B) the retailer provides a commission or other 
        consideration to the person located in this State 
        based upon the sale of tangible personal property by 
        the retailer.
        The provisions of this paragraph (1.2) shall apply 
    only if the cumulative gross receipts from sales of 
    tangible personal property by the retailer to customers in 
    this State under all such contracts exceed $10,000 during 
    the preceding 4 quarterly periods ending on the last day 
    of March, June, September, and December.
        (2) (Blank).
        (3) (Blank).
        (4) (Blank).
        (5) (Blank).
        (6) (Blank).
        (7) (Blank).
        (8) (Blank).
        (9) Beginning October 1, 2018, a retailer making sales 
    of tangible personal property to purchasers in Illinois 
    from outside of Illinois if: 
            (A) the cumulative gross receipts from sales of 
        tangible personal property to purchasers in Illinois 
        are $100,000 or more; or 
            (B) the retailer enters into 200 or more separate 
        transactions for the sale of tangible personal 
        property to purchasers in Illinois. 
        The retailer shall determine on a quarterly basis, 
    ending on the last day of March, June, September, and 
    December, whether he or she meets the criteria of either 
    subparagraph (A) or (B) of this paragraph (9) for the 
    preceding 12-month period. If the retailer meets the 
    threshold of either subparagraph (A) or (B) for a 12-month 
    period, he or she is considered a retailer maintaining a 
    place of business in this State and is required to collect 
    and remit the tax imposed under this Act and file returns 
    for one year. At the end of that one-year period, the 
    retailer shall determine whether he or she met the 
    threshold of either subparagraph (A) or (B) during the 
    preceding 12-month period. If the retailer met the 
    criteria in either subparagraph (A) or (B) for the 
    preceding 12-month period, he or she is considered a 
    retailer maintaining a place of business in this State and 
    is required to collect and remit the tax imposed under 
    this Act and file returns for the subsequent year. If at 
    the end of a one-year period a retailer that was required 
    to collect and remit the tax imposed under this Act 
    determines that he or she did not meet the threshold in 
    either subparagraph (A) or (B) during the preceding 
    12-month period, the retailer shall subsequently determine 
    on a quarterly basis, ending on the last day of March, 
    June, September, and December, whether he or she meets the 
    threshold of either subparagraph (A) or (B) for the 
    preceding 12-month period. 
        Beginning January 1, 2020, neither the gross receipts 
    from nor the number of separate transactions for sales of 
    tangible personal property to purchasers in Illinois that 
    a retailer makes through a marketplace facilitator and for 
    which the retailer has received a certification from the 
    marketplace facilitator pursuant to Section 2d of this Act 
    shall be included for purposes of determining whether he 
    or she has met the thresholds of this paragraph (9).
        (10) Beginning January 1, 2020, a marketplace 
    facilitator that meets a threshold set forth in subsection 
    (b) of Section 2d of this Act.
    "Bulk vending machine" means a vending machine, containing 
unsorted confections, nuts, toys, or other items designed 
primarily to be used or played with by children which, when a 
coin or coins of a denomination not larger than $0.50 are 
inserted, are dispensed in equal portions, at random and 
without selection by the customer.
(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 1-1-20; 
101-604, eff. 1-1-20; 102-353, eff. 1-1-22.)
 
    (35 ILCS 105/3)  (from Ch. 120, par. 439.3)
    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. 98-583, eff. 1-1-14.)
 
    (35 ILCS 105/3-5)
    Sec. 3-5. Exemptions. Use, which, on and after January 1, 
2025, includes use by a lessee, of the following tangible 
personal property is exempt from the tax imposed by this Act:
    (1) Personal property purchased from a corporation, 
society, association, foundation, institution, or 
organization, other than a limited liability company, that is 
organized and operated as a not-for-profit service enterprise 
for the benefit of persons 65 years of age or older if the 
personal property was not purchased by the enterprise for the 
purpose of resale by the enterprise.
    (2) Personal property purchased by a not-for-profit 
Illinois county fair association for use in conducting, 
operating, or promoting the county fair.
    (3) Personal property purchased by a not-for-profit arts 
or cultural organization that establishes, by proof required 
by the Department by rule, that it has received an exemption 
under Section 501(c)(3) of the Internal Revenue Code and that 
is organized and operated primarily for the presentation or 
support of arts or cultural programming, activities, or 
services. These organizations include, but are not limited to, 
music and dramatic arts organizations such as symphony 
orchestras and theatrical groups, arts and cultural service 
organizations, local arts councils, visual arts organizations, 
and media arts organizations. On and after July 1, 2001 (the 
effective date of Public Act 92-35), however, an entity 
otherwise eligible for this exemption shall not make tax-free 
purchases unless it has an active identification number issued 
by the Department.
    (4) Except as otherwise provided in this Act, personal 
property purchased by a governmental body, by a corporation, 
society, association, foundation, or institution organized and 
operated exclusively for charitable, religious, or educational 
purposes, or by a not-for-profit corporation, society, 
association, foundation, institution, or organization that has 
no compensated officers or employees and that is organized and 
operated primarily for the recreation of persons 55 years of 
age or older. A limited liability company may qualify for the 
exemption under this paragraph only if the limited liability 
company is organized and operated exclusively for educational 
purposes. On and after July 1, 1987, however, no entity 
otherwise eligible for this exemption shall make tax-free 
purchases unless it has an active exemption identification 
number issued by the Department.
    (5) Until July 1, 2003, a passenger car that is a 
replacement vehicle to the extent that the purchase price of 
the car is subject to the Replacement Vehicle Tax.
    (6) Until July 1, 2003 and beginning again on September 1, 
2004 through August 30, 2014, graphic arts machinery and 
equipment, including repair and replacement parts, both new 
and used, and including that manufactured on special order, 
certified by the purchaser to be used primarily for graphic 
arts production, and including machinery and equipment 
purchased for lease. Equipment includes chemicals or chemicals 
acting as catalysts but only if the chemicals or chemicals 
acting as catalysts effect a direct and immediate change upon 
a graphic arts product. Beginning on July 1, 2017, graphic 
arts machinery and equipment is included in the manufacturing 
and assembling machinery and equipment exemption under 
paragraph (18). 
    (7) Farm chemicals.
    (8) Legal tender, currency, medallions, or gold or silver 
coinage issued by the State of Illinois, the government of the 
United States of America, or the government of any foreign 
country, and bullion.
    (9) Personal property purchased from a teacher-sponsored 
student organization affiliated with an elementary or 
secondary school located in Illinois.
    (10) A motor vehicle that is used for automobile renting, 
as defined in the Automobile Renting Occupation and Use Tax 
Act.
    (11) Farm machinery and equipment, both new and used, 
including that manufactured on special order, certified by the 
purchaser to be used primarily for production agriculture or 
State or federal agricultural programs, including individual 
replacement parts for the machinery and equipment, including 
machinery and equipment purchased for lease, and including 
implements of husbandry defined in Section 1-130 of the 
Illinois Vehicle Code, farm machinery and agricultural 
chemical and fertilizer spreaders, and nurse wagons required 
to be registered under Section 3-809 of the Illinois Vehicle 
Code, but excluding other motor vehicles required to be 
registered under the Illinois Vehicle Code. Horticultural 
polyhouses or hoop houses used for propagating, growing, or 
overwintering plants shall be considered farm machinery and 
equipment under this item (11). Agricultural chemical tender 
tanks and dry boxes shall include units sold separately from a 
motor vehicle required to be licensed and units sold mounted 
on a motor vehicle required to be licensed if the selling price 
of the tender is separately stated.
    Farm machinery and equipment shall include precision 
farming equipment that is installed or purchased to be 
installed on farm machinery and equipment, including, but not 
limited to, tractors, harvesters, sprayers, planters, seeders, 
or spreaders. Precision farming equipment includes, but is not 
limited to, soil testing sensors, computers, monitors, 
software, global positioning and mapping systems, and other 
such equipment.
    Farm machinery and equipment also includes computers, 
sensors, software, and related equipment used primarily in the 
computer-assisted operation of production agriculture 
facilities, equipment, and activities such as, but not limited 
to, the collection, monitoring, and correlation of animal and 
crop data for the purpose of formulating animal diets and 
agricultural chemicals. 
    Beginning on January 1, 2024, farm machinery and equipment 
also includes electrical power generation equipment used 
primarily for production agriculture. 
    This item (11) is exempt from the provisions of Section 
3-90.
    (12) Until June 30, 2013, fuel and petroleum products sold 
to or used by an air common carrier, certified by the carrier 
to be used for consumption, shipment, or storage in the 
conduct of its business as an air common carrier, for a flight 
destined for or returning from a location or locations outside 
the United States without regard to previous or subsequent 
domestic stopovers.
    Beginning July 1, 2013, fuel and petroleum products sold 
to or used by an air carrier, certified by the carrier to be 
used for consumption, shipment, or storage in the conduct of 
its business as an air common carrier, for a flight that (i) is 
engaged in foreign trade or is engaged in trade between the 
United States and any of its possessions and (ii) transports 
at least one individual or package for hire from the city of 
origination to the city of final destination on the same 
aircraft, without regard to a change in the flight number of 
that aircraft. 
    (13) Proceeds of mandatory service charges separately 
stated on customers' bills for the purchase and consumption of 
food and beverages purchased at retail from a retailer, to the 
extent that the proceeds of the service charge are in fact 
turned over as tips or as a substitute for tips to the 
employees who participate directly in preparing, serving, 
hosting or cleaning up the food or beverage function with 
respect to which the service charge is imposed.
    (14) Until July 1, 2003, oil field exploration, drilling, 
and production equipment, including (i) rigs and parts of 
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) 
pipe and tubular goods, including casing and drill strings, 
(iii) pumps and pump-jack units, (iv) storage tanks and flow 
lines, (v) any individual replacement part for oil field 
exploration, drilling, and production equipment, and (vi) 
machinery and equipment purchased for lease; but excluding 
motor vehicles required to be registered under the Illinois 
Vehicle Code.
    (15) Photoprocessing machinery and equipment, including 
repair and replacement parts, both new and used, including 
that manufactured on special order, certified by the purchaser 
to be used primarily for photoprocessing, and including 
photoprocessing machinery and equipment purchased for lease.
    (16) Until July 1, 2028, coal and aggregate exploration, 
mining, off-highway hauling, processing, maintenance, and 
reclamation equipment, including replacement parts and 
equipment, and including equipment purchased for lease, but 
excluding motor vehicles required to be registered under the 
Illinois Vehicle Code. The changes made to this Section by 
Public Act 97-767 apply on and after July 1, 2003, but no claim 
for credit or refund is allowed on or after August 16, 2013 
(the effective date of Public Act 98-456) for such taxes paid 
during the period beginning July 1, 2003 and ending on August 
16, 2013 (the effective date of Public Act 98-456). 
    (17) Until July 1, 2003, distillation machinery and 
equipment, sold as a unit or kit, assembled or installed by the 
retailer, certified by the user to be used only for the 
production of ethyl alcohol that will be used for consumption 
as motor fuel or as a component of motor fuel for the personal 
use of the user, and not subject to sale or resale.
    (18) Manufacturing and assembling machinery and equipment 
used primarily in the process of manufacturing or assembling 
tangible personal property for wholesale or retail sale or 
lease, whether that sale or lease is made directly by the 
manufacturer or by some other person, whether the materials 
used in the process are owned by the manufacturer or some other 
person, or whether that sale or lease is made apart from or as 
an incident to the seller's engaging in the service occupation 
of producing machines, tools, dies, jigs, patterns, gauges, or 
other similar items of no commercial value on special order 
for a particular purchaser. The exemption provided by this 
paragraph (18) includes production related tangible personal 
property, as defined in Section 3-50, purchased on or after 
July 1, 2019. The exemption provided by this paragraph (18) 
does not include machinery and equipment used in (i) the 
generation of electricity for wholesale or retail sale; (ii) 
the generation or treatment of natural or artificial gas for 
wholesale or retail sale that is delivered to customers 
through pipes, pipelines, or mains; or (iii) the treatment of 
water for wholesale or retail sale that is delivered to 
customers through pipes, pipelines, or mains. The provisions 
of Public Act 98-583 are declaratory of existing law as to the 
meaning and scope of this exemption. Beginning on July 1, 
2017, the exemption provided by this paragraph (18) includes, 
but is not limited to, graphic arts machinery and equipment, 
as defined in paragraph (6) of this Section. 
    (19) Personal property delivered to a purchaser or 
purchaser's donee inside Illinois when the purchase order for 
that personal property was received by a florist located 
outside Illinois who has a florist located inside Illinois 
deliver the personal property.
    (20) Semen used for artificial insemination of livestock 
for direct agricultural production.
    (21) Horses, or interests in horses, registered with and 
meeting the requirements of any of the Arabian Horse Club 
Registry of America, Appaloosa Horse Club, American Quarter 
Horse Association, United States Trotting Association, or 
Jockey Club, as appropriate, used for purposes of breeding or 
racing for prizes. This item (21) is exempt from the 
provisions of Section 3-90, and the exemption provided for 
under this item (21) applies for all periods beginning May 30, 
1995, but no claim for credit or refund is allowed on or after 
January 1, 2008 for such taxes paid during the period 
beginning May 30, 2000 and ending on January 1, 2008. 
    (22) Computers and communications equipment utilized for 
any hospital purpose and equipment used in the diagnosis, 
analysis, or treatment of hospital patients purchased by a 
lessor who leases the equipment, under a lease of one year or 
longer executed or in effect at the time the lessor would 
otherwise be subject to the tax imposed by this Act, to a 
hospital that has been issued an active tax exemption 
identification number by the Department under Section 1g of 
the Retailers' Occupation Tax Act. If the equipment is leased 
in a manner that does not qualify for this exemption or is used 
in any other non-exempt manner, the lessor shall be liable for 
the tax imposed under this Act or the Service Use Tax Act, as 
the case may be, based on the fair market value of the property 
at the time the non-qualifying use occurs. No lessor shall 
collect or attempt to collect an amount (however designated) 
that purports to reimburse that lessor for the tax imposed by 
this Act or the Service Use Tax Act, as the case may be, if the 
tax has not been paid by the lessor. If a lessor improperly 
collects any such amount from the lessee, the lessee shall 
have a legal right to claim a refund of that amount from the 
lessor. If, however, that amount is not refunded to the lessee 
for any reason, the lessor is liable to pay that amount to the 
Department.
    (23) Personal property purchased by a lessor who leases 
the property, under a lease of one year or longer executed or 
in effect at the time the lessor would otherwise be subject to 
the tax imposed by this Act, to a governmental body that has 
been issued an active sales tax exemption identification 
number by the Department under Section 1g of the Retailers' 
Occupation Tax Act. If the property is leased in a manner that 
does not qualify for this exemption or used in any other 
non-exempt manner, the lessor shall be liable for the tax 
imposed under this Act or the Service Use Tax Act, as the case 
may be, based on the fair market value of the property at the 
time the non-qualifying use occurs. No lessor shall collect or 
attempt to collect an amount (however designated) that 
purports to reimburse that lessor for the tax imposed by this 
Act or the Service Use Tax Act, as the case may be, if the tax 
has not been paid by the lessor. If a lessor improperly 
collects any such amount from the lessee, the lessee shall 
have a legal right to claim a refund of that amount from the 
lessor. If, however, that amount is not refunded to the lessee 
for any reason, the lessor is liable to pay that amount to the 
Department.
    (24) Beginning with taxable years ending on or after 
December 31, 1995 and ending with taxable years ending on or 
before December 31, 2004, personal property that is donated 
for disaster relief to be used in a State or federally declared 
disaster area in Illinois or bordering Illinois by a 
manufacturer or retailer that is registered in this State to a 
corporation, society, association, foundation, or institution 
that has been issued a sales tax exemption identification 
number by the Department that assists victims of the disaster 
who reside within the declared disaster area.
    (25) Beginning with taxable years ending on or after 
December 31, 1995 and ending with taxable years ending on or 
before December 31, 2004, personal property that is used in 
the performance of infrastructure repairs in this State, 
including, but not limited to, municipal roads and streets, 
access roads, bridges, sidewalks, waste disposal systems, 
water and sewer line extensions, water distribution and 
purification facilities, storm water drainage and retention 
facilities, and sewage treatment facilities, resulting from a 
State or federally declared disaster in Illinois or bordering 
Illinois when such repairs are initiated on facilities located 
in the declared disaster area within 6 months after the 
disaster.
    (26) Beginning July 1, 1999, game or game birds purchased 
at a "game breeding and hunting preserve area" as that term is 
used in the Wildlife Code. This paragraph is exempt from the 
provisions of Section 3-90.
    (27) A motor vehicle, as that term is defined in Section 
1-146 of the Illinois Vehicle Code, that is donated to a 
corporation, limited liability company, society, association, 
foundation, or institution that is determined by the 
Department to be organized and operated exclusively for 
educational purposes. For purposes of this exemption, "a 
corporation, limited liability company, society, association, 
foundation, or institution organized and operated exclusively 
for educational purposes" means all tax-supported public 
schools, private schools that offer systematic instruction in 
useful branches of learning by methods common to public 
schools and that compare favorably in their scope and 
intensity with the course of study presented in tax-supported 
schools, and vocational or technical schools or institutes 
organized and operated exclusively to provide a course of 
study of not less than 6 weeks duration and designed to prepare 
individuals to follow a trade or to pursue a manual, 
technical, mechanical, industrial, business, or commercial 
occupation.
    (28) Beginning January 1, 2000, personal property, 
including food, purchased through fundraising events for the 
benefit of a public or private elementary or secondary school, 
a group of those schools, or one or more school districts if 
the events are sponsored by an entity recognized by the school 
district that consists primarily of volunteers and includes 
parents and teachers of the school children. This paragraph 
does not apply to fundraising events (i) for the benefit of 
private home instruction or (ii) for which the fundraising 
entity purchases the personal property sold at the events from 
another individual or entity that sold the property for the 
purpose of resale by the fundraising entity and that profits 
from the sale to the fundraising entity. This paragraph is 
exempt from the provisions of Section 3-90.
    (29) Beginning January 1, 2000 and through December 31, 
2001, new or used automatic vending machines that prepare and 
serve hot food and beverages, including coffee, soup, and 
other items, and replacement parts for these machines. 
Beginning January 1, 2002 and through June 30, 2003, machines 
and parts for machines used in commercial, coin-operated 
amusement and vending business if a use or occupation tax is 
paid on the gross receipts derived from the use of the 
commercial, coin-operated amusement and vending machines. This 
paragraph is exempt from the provisions of Section 3-90.
    (30) Beginning January 1, 2001 and through June 30, 2016, 
food for human consumption that is to be consumed off the 
premises where it is sold (other than alcoholic beverages, 
soft drinks, and food that has been prepared for immediate 
consumption) and prescription and nonprescription medicines, 
drugs, medical appliances, and insulin, urine testing 
materials, syringes, and needles used by diabetics, for human 
use, when purchased for use by a person receiving medical 
assistance under Article V of the Illinois Public Aid Code who 
resides in a licensed long-term care facility, as defined in 
the Nursing Home Care Act, or in a licensed facility as defined 
in the ID/DD Community Care Act, the MC/DD Act, or the 
Specialized Mental Health Rehabilitation Act of 2013.
    (31) Beginning on August 2, 2001 (the effective date of 
Public Act 92-227), computers and communications equipment 
utilized for any hospital purpose and equipment used in the 
diagnosis, analysis, or treatment of hospital patients 
purchased by a lessor who leases the equipment, under a lease 
of one year or longer executed or in effect at the time the 
lessor would otherwise be subject to the tax imposed by this 
Act, to a hospital that has been issued an active tax exemption 
identification number by the Department under Section 1g of 
the Retailers' Occupation Tax Act. If the equipment is leased 
in a manner that does not qualify for this exemption or is used 
in any other nonexempt manner, the lessor shall be liable for 
the tax imposed under this Act or the Service Use Tax Act, as 
the case may be, based on the fair market value of the property 
at the time the nonqualifying use occurs. No lessor shall 
collect or attempt to collect an amount (however designated) 
that purports to reimburse that lessor for the tax imposed by 
this Act or the Service Use Tax Act, as the case may be, if the 
tax has not been paid by the lessor. If a lessor improperly 
collects any such amount from the lessee, the lessee shall 
have a legal right to claim a refund of that amount from the 
lessor. If, however, that amount is not refunded to the lessee 
for any reason, the lessor is liable to pay that amount to the 
Department. This paragraph is exempt from the provisions of 
Section 3-90.
    (32) Beginning on August 2, 2001 (the effective date of 
Public Act 92-227), personal property purchased by a lessor 
who leases the property, under a lease of one year or longer 
executed or in effect at the time the lessor would otherwise be 
subject to the tax imposed by this Act, to a governmental body 
that has been issued an active sales tax exemption 
identification number by the Department under Section 1g of 
the Retailers' Occupation Tax Act. If the property is leased 
in a manner that does not qualify for this exemption or used in 
any other nonexempt manner, the lessor shall be liable for the 
tax imposed under this Act or the Service Use Tax Act, as the 
case may be, based on the fair market value of the property at 
the time the nonqualifying use occurs. No lessor shall collect 
or attempt to collect an amount (however designated) that 
purports to reimburse that lessor for the tax imposed by this 
Act or the Service Use Tax Act, as the case may be, if the tax 
has not been paid by the lessor. If a lessor improperly 
collects any such amount from the lessee, the lessee shall 
have a legal right to claim a refund of that amount from the 
lessor. If, however, that amount is not refunded to the lessee 
for any reason, the lessor is liable to pay that amount to the 
Department. This paragraph is exempt from the provisions of 
Section 3-90.
    (33) On and after July 1, 2003 and through June 30, 2004, 
the use in this State of motor vehicles of the second division 
with a gross vehicle weight in excess of 8,000 pounds and that 
are subject to the commercial distribution fee imposed under 
Section 3-815.1 of the Illinois Vehicle Code. Beginning on 
July 1, 2004 and through June 30, 2005, the use in this State 
of motor vehicles of the second division: (i) with a gross 
vehicle weight rating in excess of 8,000 pounds; (ii) that are 
subject to the commercial distribution fee imposed under 
Section 3-815.1 of the Illinois Vehicle Code; and (iii) that 
are primarily used for commercial purposes. Through June 30, 
2005, this exemption applies to repair and replacement parts 
added after the initial purchase of such a motor vehicle if 
that motor vehicle is used in a manner that would qualify for 
the rolling stock exemption otherwise provided for in this 
Act. For purposes of this paragraph, the term "used for 
commercial purposes" means the transportation of persons or 
property in furtherance of any commercial or industrial 
enterprise, whether for-hire or not. 
    (34) Beginning January 1, 2008, tangible personal property 
used in the construction or maintenance of a community water 
supply, as defined under Section 3.145 of the Environmental 
Protection Act, that is operated by a not-for-profit 
corporation that holds a valid water supply permit issued 
under Title IV of the Environmental Protection Act. This 
paragraph is exempt from the provisions of Section 3-90.
    (35) Beginning January 1, 2010 and continuing through 
December 31, 2029, materials, parts, equipment, components, 
and furnishings incorporated into or upon an aircraft as part 
of the modification, refurbishment, completion, replacement, 
repair, or maintenance of the aircraft. This exemption 
includes consumable supplies used in the modification, 
refurbishment, completion, replacement, repair, and 
maintenance of aircraft. However, until January 1, 2024, this 
exemption excludes any materials, parts, equipment, 
components, and consumable supplies used in the modification, 
replacement, repair, and maintenance of aircraft engines or 
power plants, whether such engines or power plants are 
installed or uninstalled upon any such aircraft. "Consumable 
supplies" include, but are not limited to, adhesive, tape, 
sandpaper, general purpose lubricants, cleaning solution, 
latex gloves, and protective films. 
    Beginning January 1, 2010 and continuing through December 
31, 2023, this exemption applies only to the use of qualifying 
tangible personal property by persons who modify, refurbish, 
complete, repair, replace, or maintain aircraft and who (i) 
hold an Air Agency Certificate and are empowered to operate an 
approved repair station by the Federal Aviation 
Administration, (ii) have a Class IV Rating, and (iii) conduct 
operations in accordance with Part 145 of the Federal Aviation 
Regulations. From January 1, 2024 through December 31, 2029, 
this exemption applies only to the use of qualifying tangible 
personal property by: (A) persons who modify, refurbish, 
complete, repair, replace, or maintain aircraft and who (i) 
hold an Air Agency Certificate and are empowered to operate an 
approved repair station by the Federal Aviation 
Administration, (ii) have a Class IV Rating, and (iii) conduct 
operations in accordance with Part 145 of the Federal Aviation 
Regulations; and (B) persons who engage in the modification, 
replacement, repair, and maintenance of aircraft engines or 
power plants without regard to whether or not those persons 
meet the qualifications of item (A). 
    The exemption does not include aircraft operated by a 
commercial air carrier providing scheduled passenger air 
service pursuant to authority issued under Part 121 or Part 
129 of the Federal Aviation Regulations. The changes made to 
this paragraph (35) by Public Act 98-534 are declarative of 
existing law. It is the intent of the General Assembly that the 
exemption under this paragraph (35) applies continuously from 
January 1, 2010 through December 31, 2024; however, no claim 
for credit or refund is allowed for taxes paid as a result of 
the disallowance of this exemption on or after January 1, 2015 
and prior to February 5, 2020 (the effective date of Public Act 
101-629).
    (36) Tangible personal property purchased by a 
public-facilities corporation, as described in Section 
11-65-10 of the Illinois Municipal Code, for purposes of 
constructing or furnishing a municipal convention hall, but 
only if the legal title to the municipal convention hall is 
transferred to the municipality without any further 
consideration by or on behalf of the municipality at the time 
of the completion of the municipal convention hall or upon the 
retirement or redemption of any bonds or other debt 
instruments issued by the public-facilities corporation in 
connection with the development of the municipal convention 
hall. This exemption includes existing public-facilities 
corporations as provided in Section 11-65-25 of the Illinois 
Municipal Code. This paragraph is exempt from the provisions 
of Section 3-90. 
    (37) Beginning January 1, 2017 and through December 31, 
2026, menstrual pads, tampons, and menstrual cups. 
    (38) Merchandise that is subject to the Rental Purchase 
Agreement Occupation and Use Tax. The purchaser must certify 
that the item is purchased to be rented subject to a 
rental-purchase rental purchase agreement, as defined in the 
Rental-Purchase Rental Purchase Agreement Act, and provide 
proof of registration under the Rental Purchase Agreement 
Occupation and Use Tax Act. This paragraph is exempt from the 
provisions of Section 3-90.
    (39) Tangible personal property purchased by a purchaser 
who is exempt from the tax imposed by this Act by operation of 
federal law. This paragraph is exempt from the provisions of 
Section 3-90.
    (40) Qualified tangible personal property used in the 
construction or operation of a data center that has been 
granted a certificate of exemption by the Department of 
Commerce and Economic Opportunity, whether that tangible 
personal property is purchased by the owner, operator, or 
tenant of the data center or by a contractor or subcontractor 
of the owner, operator, or tenant. Data centers that would 
have qualified for a certificate of exemption prior to January 
1, 2020 had Public Act 101-31 been in effect may apply for and 
obtain an exemption for subsequent purchases of computer 
equipment or enabling software purchased or leased to upgrade, 
supplement, or replace computer equipment or enabling software 
purchased or leased in the original investment that would have 
qualified. 
    The Department of Commerce and Economic Opportunity shall 
grant a certificate of exemption under this item (40) to 
qualified data centers as defined by Section 605-1025 of the 
Department of Commerce and Economic Opportunity Law of the 
Civil Administrative Code of Illinois. 
    For the purposes of this item (40): 
        "Data center" means a building or a series of 
    buildings rehabilitated or constructed to house working 
    servers in one physical location or multiple sites within 
    the State of Illinois. 
        "Qualified tangible personal property" means: 
    electrical systems and equipment; climate control and 
    chilling equipment and systems; mechanical systems and 
    equipment; monitoring and secure systems; emergency 
    generators; hardware; computers; servers; data storage 
    devices; network connectivity equipment; racks; cabinets; 
    telecommunications cabling infrastructure; raised floor 
    systems; peripheral components or systems; software; 
    mechanical, electrical, or plumbing systems; battery 
    systems; cooling systems and towers; temperature control 
    systems; other cabling; and other data center 
    infrastructure equipment and systems necessary to operate 
    qualified tangible personal property, including fixtures; 
    and component parts of any of the foregoing, including 
    installation, maintenance, repair, refurbishment, and 
    replacement of qualified tangible personal property to 
    generate, transform, transmit, distribute, or manage 
    electricity necessary to operate qualified tangible 
    personal property; and all other tangible personal 
    property that is essential to the operations of a computer 
    data center. The term "qualified tangible personal 
    property" also includes building materials physically 
    incorporated into in to the qualifying data center. To 
    document the exemption allowed under this Section, the 
    retailer must obtain from the purchaser a copy of the 
    certificate of eligibility issued by the Department of 
    Commerce and Economic Opportunity. 
    This item (40) is exempt from the provisions of Section 
3-90. 
    (41) Beginning July 1, 2022, breast pumps, breast pump 
collection and storage supplies, and breast pump kits. This 
item (41) is exempt from the provisions of Section 3-90. As 
used in this item (41): 
        "Breast pump" means an electrically controlled or 
    manually controlled pump device designed or marketed to be 
    used to express milk from a human breast during lactation, 
    including the pump device and any battery, AC adapter, or 
    other power supply unit that is used to power the pump 
    device and is packaged and sold with the pump device at the 
    time of sale. 
        "Breast pump collection and storage supplies" means 
    items of tangible personal property designed or marketed 
    to be used in conjunction with a breast pump to collect 
    milk expressed from a human breast and to store collected 
    milk until it is ready for consumption. 
        "Breast pump collection and storage supplies" 
    includes, but is not limited to: breast shields and breast 
    shield connectors; breast pump tubes and tubing adapters; 
    breast pump valves and membranes; backflow protectors and 
    backflow protector adaptors; bottles and bottle caps 
    specific to the operation of the breast pump; and breast 
    milk storage bags. 
        "Breast pump collection and storage supplies" does not 
    include: (1) bottles and bottle caps not specific to the 
    operation of the breast pump; (2) breast pump travel bags 
    and other similar carrying accessories, including ice 
    packs, labels, and other similar products; (3) breast pump 
    cleaning supplies; (4) nursing bras, bra pads, breast 
    shells, and other similar products; and (5) creams, 
    ointments, and other similar products that relieve 
    breastfeeding-related symptoms or conditions of the 
    breasts or nipples, unless sold as part of a breast pump 
    kit that is pre-packaged by the breast pump manufacturer 
    or distributor. 
        "Breast pump kit" means a kit that: (1) contains no 
    more than a breast pump, breast pump collection and 
    storage supplies, a rechargeable battery for operating the 
    breast pump, a breastmilk cooler, bottle stands, ice 
    packs, and a breast pump carrying case; and (2) is 
    pre-packaged as a breast pump kit by the breast pump 
    manufacturer or distributor. 
    (42) Tangible personal property sold by or on behalf of 
the State Treasurer pursuant to the Revised Uniform Unclaimed 
Property Act. This item (42) is exempt from the provisions of 
Section 3-90. 
    (43) Beginning on January 1, 2024, tangible personal 
property purchased by an active duty member of the armed 
forces of the United States who presents valid military 
identification and purchases the property using a form of 
payment where the federal government is the payor. The member 
of the armed forces must complete, at the point of sale, a form 
prescribed by the Department of Revenue documenting that the 
transaction is eligible for the exemption under this 
paragraph. Retailers must keep the form as documentation of 
the exemption in their records for a period of not less than 6 
years. "Armed forces of the United States" means the United 
States Army, Navy, Air Force, Marine Corps, or Coast Guard. 
This paragraph is exempt from the provisions of Section 3-90. 
    (44) Use by the lessee of the following leased tangible 
personal property:
        (1) software transferred subject to a license that 
    meets the following requirements:
            (A) it is evidenced by a written agreement signed 
        by the licensor and the customer;
                (i) an electronic agreement in which the 
            customer accepts the license by means of an 
            electronic signature that is verifiable and can be 
            authenticated and is attached to or made part of 
            the license will comply with this requirement;
                (ii) a license agreement in which the customer 
            electronically accepts the terms by clicking "I 
            agree" does not comply with this requirement;
            (B) it restricts the customer's duplication and 
        use of the software;
            (C) it prohibits the customer from licensing, 
        sublicensing, or transferring the software to a third 
        party (except to a related party) without the 
        permission and continued control of the licensor;
            (D) the licensor has a policy of providing another 
        copy at minimal or no charge if the customer loses or 
        damages the software, or of permitting the licensee to 
        make and keep an archival copy, and such policy is 
        either stated in the license agreement, supported by 
        the licensor's books and records, or supported by a 
        notarized statement made under penalties of perjury by 
        the licensor; and
            (E) the customer must destroy or return all copies 
        of the software to the licensor at the end of the 
        license period; this provision is deemed to be met, in 
        the case of a perpetual license, without being set 
        forth in the license agreement; and
        (2) property that is subject to a tax on lease 
    receipts imposed by a home rule unit of local government 
    if the ordinance imposing that tax was adopted prior to 
    January 1, 2023. 
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, 
Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5, 
eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, 
Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5, 
eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; 
revised 12-12-23.)
 
    (35 ILCS 105/3-10)
    Sec. 3-10. Rate of tax. Unless otherwise provided in this 
Section, the tax imposed by this Act is at the rate of 6.25% of 
either the selling price or the fair market value, if any, of 
the tangible personal property, which, on and after January 1, 
2025, includes leases of tangible personal property. In all 
cases where property functionally used or consumed is the same 
as the property that was purchased at retail, then the tax is 
imposed on the selling price of the property. In all cases 
where property functionally used or consumed is a by-product 
or waste product that has been refined, manufactured, or 
produced from property purchased at retail, then the tax is 
imposed on the lower of the fair market value, if any, of the 
specific property so used in this State or on the selling price 
of the property purchased at retail. For purposes of this 
Section "fair market value" means the price at which property 
would change hands between a willing buyer and a willing 
seller, neither being under any compulsion to buy or sell and 
both having reasonable knowledge of the relevant facts. The 
fair market value shall be established by Illinois sales by 
the taxpayer of the same property as that functionally used or 
consumed, or if there are no such sales by the taxpayer, then 
comparable sales or purchases of property of like kind and 
character in Illinois.
    Beginning on July 1, 2000 and through December 31, 2000, 
with respect to motor fuel, as defined in Section 1.1 of the 
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of 
the Use Tax Act, the tax is imposed at the rate of 1.25%.
    Beginning on August 6, 2010 through August 15, 2010, and 
beginning again on August 5, 2022 through August 14, 2022, 
with respect to sales tax holiday items as defined in Section 
3-6 of this Act, the tax is imposed at the rate of 1.25%. 
    With respect to gasohol, the tax imposed by this Act 
applies to (i) 70% of the proceeds of sales made on or after 
January 1, 1990, and before July 1, 2003, (ii) 80% of the 
proceeds of sales made on or after July 1, 2003 and on or 
before July 1, 2017, (iii) 100% of the proceeds of sales made 
after July 1, 2017 and prior to January 1, 2024, (iv) 90% of 
the proceeds of sales made on or after January 1, 2024 and on 
or before December 31, 2028, and (v) 100% of the proceeds of 
sales made after December 31, 2028. If, at any time, however, 
the tax under this Act on sales of gasohol is imposed at the 
rate of 1.25%, then the tax imposed by this Act applies to 100% 
of the proceeds of sales of gasohol made during that time.
    With respect to mid-range ethanol blends, the tax imposed 
by this Act applies to (i) 80% of the proceeds of sales made on 
or after January 1, 2024 and on or before December 31, 2028 and 
(ii) 100% of the proceeds of sales made thereafter. If, at any 
time, however, the tax under this Act on sales of mid-range 
ethanol blends is imposed at the rate of 1.25%, then the tax 
imposed by this Act applies to 100% of the proceeds of sales of 
mid-range ethanol blends made during that time. 
    With respect to majority blended ethanol fuel, the tax 
imposed by this Act does not apply to the proceeds of sales 
made on or after July 1, 2003 and on or before December 31, 
2028 but applies to 100% of the proceeds of sales made 
thereafter.
    With respect to biodiesel blends with no less than 1% and 
no more than 10% biodiesel, the tax imposed by this Act applies 
to (i) 80% of the proceeds of sales made on or after July 1, 
2003 and on or before December 31, 2018 and (ii) 100% of the 
proceeds of sales made after December 31, 2018 and before 
January 1, 2024. On and after January 1, 2024 and on or before 
December 31, 2030, the taxation of biodiesel, renewable 
diesel, and biodiesel blends shall be as provided in Section 
3-5.1. If, at any time, however, the tax under this Act on 
sales of biodiesel blends with no less than 1% and no more than 
10% biodiesel is imposed at the rate of 1.25%, then the tax 
imposed by this Act applies to 100% of the proceeds of sales of 
biodiesel blends with no less than 1% and no more than 10% 
biodiesel made during that time.
    With respect to biodiesel and biodiesel blends with more 
than 10% but no more than 99% biodiesel, the tax imposed by 
this Act does not apply to the proceeds of sales made on or 
after July 1, 2003 and on or before December 31, 2023. On and 
after January 1, 2024 and on or before December 31, 2030, the 
taxation of biodiesel, renewable diesel, and biodiesel blends 
shall be as provided in Section 3-5.1.
    Until July 1, 2022 and beginning again on July 1, 2023, 
with respect to food for human consumption that is to be 
consumed off the premises where it is sold (other than 
alcoholic beverages, food consisting of or infused with adult 
use cannabis, soft drinks, and food that has been prepared for 
immediate consumption), the tax is imposed at the rate of 1%. 
Beginning on July 1, 2022 and until July 1, 2023, with respect 
to food for human consumption that is to be consumed off the 
premises where it is sold (other than alcoholic beverages, 
food consisting of or infused with adult use cannabis, soft 
drinks, and food that has been prepared for immediate 
consumption), the tax is imposed at the rate of 0%.
    With respect to prescription and nonprescription 
medicines, drugs, medical appliances, products classified as 
Class III medical devices by the United States Food and Drug 
Administration that are used for cancer treatment pursuant to 
a prescription, as well as any accessories and components 
related to those devices, modifications to a motor vehicle for 
the purpose of rendering it usable by a person with a 
disability, and insulin, blood sugar testing materials, 
syringes, and needles used by human diabetics, the tax is 
imposed at the rate of 1%. For the purposes of this Section, 
until September 1, 2009: the term "soft drinks" means any 
complete, finished, ready-to-use, non-alcoholic drink, whether 
carbonated or not, including, but not limited to, soda water, 
cola, fruit juice, vegetable juice, carbonated water, and all 
other preparations commonly known as soft drinks of whatever 
kind or description that are contained in any closed or sealed 
bottle, can, carton, or container, regardless of size; but 
"soft drinks" does not include coffee, tea, non-carbonated 
water, infant formula, milk or milk products as defined in the 
Grade A Pasteurized Milk and Milk Products Act, or drinks 
containing 50% or more natural fruit or vegetable juice.
    Notwithstanding any other provisions of this Act, 
beginning September 1, 2009, "soft drinks" means non-alcoholic 
beverages that contain natural or artificial sweeteners. "Soft 
drinks" does not include beverages that contain milk or milk 
products, soy, rice or similar milk substitutes, or greater 
than 50% of vegetable or fruit juice by volume.
    Until August 1, 2009, and notwithstanding any other 
provisions of this Act, "food for human consumption that is to 
be consumed off the premises where it is sold" includes all 
food sold through a vending machine, except soft drinks and 
food products that are dispensed hot from a vending machine, 
regardless of the location of the vending machine. Beginning 
August 1, 2009, and notwithstanding any other provisions of 
this Act, "food for human consumption that is to be consumed 
off the premises where it is sold" includes all food sold 
through a vending machine, except soft drinks, candy, and food 
products that are dispensed hot from a vending machine, 
regardless of the location of the vending machine. 
    Notwithstanding any other provisions of this Act, 
beginning September 1, 2009, "food for human consumption that 
is to be consumed off the premises where it is sold" does not 
include candy. For purposes of this Section, "candy" means a 
preparation of sugar, honey, or other natural or artificial 
sweeteners in combination with chocolate, fruits, nuts or 
other ingredients or flavorings in the form of bars, drops, or 
pieces. "Candy" does not include any preparation that contains 
flour or requires refrigeration. 
    Notwithstanding any other provisions of this Act, 
beginning September 1, 2009, "nonprescription medicines and 
drugs" does not include grooming and hygiene products. For 
purposes of this Section, "grooming and hygiene products" 
includes, but is not limited to, soaps and cleaning solutions, 
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan 
lotions and screens, unless those products are available by 
prescription only, regardless of whether the products meet the 
definition of "over-the-counter-drugs". For the purposes of 
this paragraph, "over-the-counter-drug" means a drug for human 
use that contains a label that identifies the product as a drug 
as required by 21 CFR 201.66. The "over-the-counter-drug" 
label includes: 
        (A) a "Drug Facts" panel; or
        (B) a statement of the "active ingredient(s)" with a 
    list of those ingredients contained in the compound, 
    substance or preparation.
    Beginning on January 1, 2014 (the effective date of Public 
Act 98-122), "prescription and nonprescription medicines and 
drugs" includes medical cannabis purchased from a registered 
dispensing organization under the Compassionate Use of Medical 
Cannabis Program Act. 
    As used in this Section, "adult use cannabis" means 
cannabis subject to tax under the Cannabis Cultivation 
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law 
and does not include cannabis subject to tax under the 
Compassionate Use of Medical Cannabis Program Act. 
    If the property that is purchased at retail from a 
retailer is acquired outside Illinois and used outside 
Illinois before being brought to Illinois for use here and is 
taxable under this Act, the "selling price" on which the tax is 
computed shall be reduced by an amount that represents a 
reasonable allowance for depreciation for the period of prior 
out-of-state use. No depreciation is allowed in cases where 
the tax under this Act is imposed on lease receipts. 
(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20, 
Section 20-5, eff. 4-19-22; 102-700, Article 60, Section 
60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff. 
4-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)
 
    (35 ILCS 105/3-55)  (from Ch. 120, par. 439.3-55)
    Sec. 3-55. Multistate exemption. To prevent actual or 
likely multistate taxation, the tax imposed by this Act does 
not apply to the use of tangible personal property in this 
State under the following circumstances:
    (a) The use, in this State, of tangible personal property 
acquired outside this State by a nonresident individual and 
brought into this State by the individual for his or her own 
use while temporarily within this State or while passing 
through this State.
    (b) (Blank).
    (c) The use, in this State, by owners or , lessors, 
lessees, or shippers of tangible personal property that is 
utilized by interstate carriers for hire for use as rolling 
stock moving in interstate commerce as long as so used by the 
interstate carriers for hire, and equipment operated by a 
telecommunications provider, licensed as a common carrier by 
the Federal Communications Commission, which is permanently 
installed in or affixed to aircraft moving in interstate 
commerce.
    (d) The use, in this State, of tangible personal property 
that is acquired outside this State and caused to be brought 
into this State by a person who has already paid a tax in 
another State in respect to the sale, purchase, or use of that 
property, to the extent of the amount of the tax properly due 
and paid in the other State.
    (e) The temporary storage, in this State, of tangible 
personal property that is acquired outside this State and 
that, after being brought into this State and stored here 
temporarily, is used solely outside this State or is 
physically attached to or incorporated into other tangible 
personal property that is used solely outside this State, or 
is altered by converting, fabricating, manufacturing, 
printing, processing, or shaping, and, as altered, is used 
solely outside this State.
    (f) The temporary storage in this State of building 
materials and fixtures that are acquired either in this State 
or outside this State by an Illinois registered combination 
retailer and construction contractor, and that the purchaser 
thereafter uses outside this State by incorporating that 
property into real estate located outside this State.
    (g) The use or purchase of tangible personal property by a 
common carrier by rail or motor that receives the physical 
possession of the property in Illinois, and that transports 
the property, or shares with another common carrier in the 
transportation of the property, out of Illinois on a standard 
uniform bill of lading showing the seller of the property as 
the shipper or consignor of the property to a destination 
outside Illinois, for use outside Illinois.
    (h) Except as provided in subsection (h-1), the use, in 
this State, of a motor vehicle that was sold in this State to a 
nonresident, even though the motor vehicle is delivered to the 
nonresident in this State, if the motor vehicle is not to be 
titled in this State, and if a drive-away permit is issued to 
the motor vehicle as provided in Section 3-603 of the Illinois 
Vehicle Code or if the nonresident purchaser has vehicle 
registration plates to transfer to the motor vehicle upon 
returning to his or her home state. The issuance of the 
drive-away permit or having the out-of-state registration 
plates to be transferred shall be prima facie evidence that 
the motor vehicle will not be titled in this State.
    (h-1) The exemption under subsection (h) does not apply if 
the state in which the motor vehicle will be titled does not 
allow a reciprocal exemption for the use in that state of a 
motor vehicle sold and delivered in that state to an Illinois 
resident but titled in Illinois. The tax collected under this 
Act on the sale of a motor vehicle in this State to a resident 
of another state that does not allow a reciprocal exemption 
shall be imposed at a rate equal to the state's rate of tax on 
taxable property in the state in which the purchaser is a 
resident, except that the tax shall not exceed the tax that 
would otherwise be imposed under this Act. At the time of the 
sale, the purchaser shall execute a statement, signed under 
penalty of perjury, of his or her intent to title the vehicle 
in the state in which the purchaser is a resident within 30 
days after the sale and of the fact of the payment to the State 
of Illinois of tax in an amount equivalent to the state's rate 
of tax on taxable property in his or her state of residence and 
shall submit the statement to the appropriate tax collection 
agency in his or her state of residence. In addition, the 
retailer must retain a signed copy of the statement in his or 
her records. Nothing in this subsection shall be construed to 
require the removal of the vehicle from this state following 
the filing of an intent to title the vehicle in the purchaser's 
state of residence if the purchaser titles the vehicle in his 
or her state of residence within 30 days after the date of 
sale. The tax collected under this Act in accordance with this 
subsection (h-1) shall be proportionately distributed as if 
the tax were collected at the 6.25% general rate imposed under 
this Act. 
    (h-2) The following exemptions apply with respect to 
certain aircraft:
        (1) Beginning on July 1, 2007, no tax is imposed under 
    this Act on the purchase of an aircraft, as defined in 
    Section 3 of the Illinois Aeronautics Act, if all of the 
    following conditions are met:
            (A) the aircraft leaves this State within 15 days 
        after the later of either the issuance of the final 
        billing for the purchase of the aircraft or the 
        authorized approval for return to service, completion 
        of the maintenance record entry, and completion of the 
        test flight and ground test for inspection, as 
        required by 14 C.F.R. 91.407;
            (B) the aircraft is not based or registered in 
        this State after the purchase of the aircraft; and
            (C) the purchaser provides the Department with a 
        signed and dated certification, on a form prescribed 
        by the Department, certifying that the requirements of 
        this item (1) are met. The certificate must also 
        include the name and address of the purchaser, the 
        address of the location where the aircraft is to be 
        titled or registered, the address of the primary 
        physical location of the aircraft, and other 
        information that the Department may reasonably 
        require.
        (2) Beginning on July 1, 2007, no tax is imposed under 
    this Act on the use of an aircraft, as defined in Section 3 
    of the Illinois Aeronautics Act, that is temporarily 
    located in this State for the purpose of a prepurchase 
    evaluation if all of the following conditions are met:
            (A) the aircraft is not based or registered in 
        this State after the prepurchase evaluation; and
            (B) the purchaser provides the Department with a 
        signed and dated certification, on a form prescribed 
        by the Department, certifying that the requirements of 
        this item (2) are met. The certificate must also 
        include the name and address of the purchaser, the 
        address of the location where the aircraft is to be 
        titled or registered, the address of the primary 
        physical location of the aircraft, and other 
        information that the Department may reasonably 
        require.
        (3) Beginning on July 1, 2007, no tax is imposed under 
    this Act on the use of an aircraft, as defined in Section 3 
    of the Illinois Aeronautics Act, that is temporarily 
    located in this State for the purpose of a post-sale 
    customization if all of the following conditions are met:
            (A) the aircraft leaves this State within 15 days 
        after the authorized approval for return to service, 
        completion of the maintenance record entry, and 
        completion of the test flight and ground test for 
        inspection, as required by 14 C.F.R. 91.407;
            (B) the aircraft is not based or registered in 
        this State either before or after the post-sale 
        customization; and
            (C) the purchaser provides the Department with a 
        signed and dated certification, on a form prescribed 
        by the Department, certifying that the requirements of 
        this item (3) are met. The certificate must also 
        include the name and address of the purchaser, the 
        address of the location where the aircraft is to be 
        titled or registered, the address of the primary 
        physical location of the aircraft, and other 
        information that the Department may reasonably 
        require.
    If tax becomes due under this subsection (h-2) because of 
the purchaser's use of the aircraft in this State, the 
purchaser shall file a return with the Department and pay the 
tax on the fair market value of the aircraft. This return and 
payment of the tax must be made no later than 30 days after the 
aircraft is used in a taxable manner in this State. The tax is 
based on the fair market value of the aircraft on the date that 
it is first used in a taxable manner in this State.
    For purposes of this subsection (h-2):
    "Based in this State" means hangared, stored, or otherwise 
used, excluding post-sale customizations as defined in this 
Section, for 10 or more days in each 12-month period 
immediately following the date of the sale of the aircraft.
    "Post-sale customization" means any improvement, 
maintenance, or repair that is performed on an aircraft 
following a transfer of ownership of the aircraft.
    "Prepurchase evaluation" means an examination of an 
aircraft to provide a potential purchaser with information 
relevant to the potential purchase.
    "Registered in this State" means an aircraft registered 
with the Department of Transportation, Aeronautics Division, 
or titled or registered with the Federal Aviation 
Administration to an address located in this State. 
    This subsection (h-2) is exempt from the provisions of 
Section 3-90. 
    (i) Beginning July 1, 1999, the use, in this State, of fuel 
acquired outside this State and brought into this State in the 
fuel supply tanks of locomotives engaged in freight hauling 
and passenger service for interstate commerce. This subsection 
is exempt from the provisions of Section 3-90.
    (j) Beginning on January 1, 2002 and through June 30, 
2016, the use of tangible personal property purchased from an 
Illinois retailer by a taxpayer engaged in centralized 
purchasing activities in Illinois who will, upon receipt of 
the property in Illinois, temporarily store the property in 
Illinois (i) for the purpose of subsequently transporting it 
outside this State for use or consumption thereafter solely 
outside this State or (ii) for the purpose of being processed, 
fabricated, or manufactured into, attached to, or incorporated 
into other tangible personal property to be transported 
outside this State and thereafter used or consumed solely 
outside this State. The Director of Revenue shall, pursuant to 
rules adopted in accordance with the Illinois Administrative 
Procedure Act, issue a permit to any taxpayer in good standing 
with the Department who is eligible for the exemption under 
this subsection (j). The permit issued under this subsection 
(j) shall authorize the holder, to the extent and in the manner 
specified in the rules adopted under this Act, to purchase 
tangible personal property from a retailer exempt from the 
taxes imposed by this Act. Taxpayers shall maintain all 
necessary books and records to substantiate the use and 
consumption of all such tangible personal property outside of 
the State of Illinois.
(Source: P.A. 100-321, eff. 8-24-17.)
 
    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
    Sec. 9. Except as to motor vehicles, watercraft, aircraft, 
and trailers that are required to be registered with an agency 
of this State, each retailer required or authorized to collect 
the tax imposed by this Act shall pay to the Department the 
amount of such tax (except as otherwise provided) at the time 
when he is required to file his return for the period during 
which such tax was collected, less a discount of 2.1% prior to 
January 1, 1990, and 1.75% on and after January 1, 1990, or $5 
per calendar year, whichever is greater, which is allowed to 
reimburse the retailer for expenses incurred in collecting the 
tax, keeping records, preparing and filing returns, remitting 
the tax and supplying data to the Department on request. When 
determining the discount allowed under this Section, retailers 
shall include the amount of tax that would have been due at the 
6.25% rate but for the 1.25% rate imposed on sales tax holiday 
items under Public Act 102-700. The discount under this 
Section is not allowed for the 1.25% portion of taxes paid on 
aviation fuel that is subject to the revenue use requirements 
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. When determining 
the discount allowed under this Section, retailers shall 
include the amount of tax that would have been due at the 1% 
rate but for the 0% rate imposed under Public Act 102-700. In 
the case of retailers who report and pay the tax on a 
transaction by transaction basis, as provided in this Section, 
such discount shall be taken with each such tax remittance 
instead of when such retailer files his periodic return. The 
discount allowed under this Section is allowed only for 
returns that are filed in the manner required by this Act. The 
Department may disallow the discount for retailers whose 
certificate of registration is revoked at the time the return 
is filed, but only if the Department's decision to revoke the 
certificate of registration has become final. A retailer need 
not remit that part of any tax collected by him to the extent 
that he is required to remit and does remit the tax imposed by 
the Retailers' Occupation Tax Act, with respect to the sale of 
the same property.
    Where such tangible personal property is sold under a 
conditional sales contract, or under any other form of sale 
wherein the payment of the principal sum, or a part thereof, is 
extended beyond the close of the period for which the return is 
filed, the retailer, in collecting the tax (except as to motor 
vehicles, watercraft, aircraft, and trailers that are required 
to be registered with an agency of this State), 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.
    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. 
    Except as provided in this Section, on or before the 
twentieth day of each calendar month, such retailer shall file 
a return for the preceding calendar month. Such return shall 
be filed on forms prescribed by the Department and shall 
furnish such information as the Department may reasonably 
require. The return shall include the gross receipts on food 
for human consumption that is to be consumed off the premises 
where it is sold (other than alcoholic beverages, food 
consisting of or infused with adult use cannabis, soft drinks, 
and food that has been prepared for immediate consumption) 
which were received during the preceding calendar month, 
quarter, or year, as appropriate, and upon which tax would 
have been due but for the 0% rate imposed under Public Act 
102-700. The return shall also include the amount of tax that 
would have been due on food for human consumption that is to be 
consumed off the premises where it is sold (other than 
alcoholic beverages, food consisting of or infused with adult 
use cannabis, soft drinks, and food that has been prepared for 
immediate consumption) but for the 0% rate imposed under 
Public Act 102-700.
    On and after January 1, 2018, except for returns required 
to be filed prior to January 1, 2023 for motor vehicles, 
watercraft, aircraft, and trailers that are required to be 
registered with an agency of this State, with respect to 
retailers whose annual gross receipts average $20,000 or more, 
all returns required to be filed pursuant to this Act shall be 
filed electronically. On and after January 1, 2023, with 
respect to retailers whose annual gross receipts average 
$20,000 or more, all returns required to be filed pursuant to 
this Act, including, but not limited to, returns for motor 
vehicles, watercraft, aircraft, and trailers that are required 
to be registered with an agency of this State, shall be filed 
electronically. Retailers who demonstrate that they do not 
have access to the Internet or demonstrate hardship in filing 
electronically may petition the Department to waive the 
electronic filing requirement.
    The Department may require returns to be filed on a 
quarterly basis. If so required, a return for each calendar 
quarter shall be filed on or before the twentieth day of the 
calendar month following the end of such calendar quarter. The 
taxpayer shall also file a return with the Department for each 
of the first two months of each calendar quarter, on or before 
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from 
    which he engages in the business of selling tangible 
    personal property at retail in this State;
        3. The total amount of taxable receipts received by 
    him during the preceding calendar month from sales of 
    tangible personal property by him during such preceding 
    calendar month, including receipts from charge and time 
    sales, but less all deductions allowed by law;
        4. The amount of credit provided in Section 2d of this 
    Act;
        5. The amount of tax due;
        5-5. The signature of the taxpayer; and
        6. Such other reasonable information as the Department 
    may require.
    Each retailer required or authorized to collect the tax 
imposed by this Act on aviation fuel sold at retail in this 
State during the preceding calendar month shall, instead of 
reporting and paying tax on aviation fuel as otherwise 
required by this Section, report and pay such tax on a separate 
aviation fuel tax return. The requirements related to the 
return shall be as otherwise provided in this Section. 
Notwithstanding any other provisions of this Act to the 
contrary, retailers collecting tax on aviation fuel shall file 
all aviation fuel tax returns and shall make all aviation fuel 
tax payments by electronic means in the manner and form 
required by the Department. For purposes of this Section, 
"aviation fuel" means jet fuel and aviation gasoline. 
    If a taxpayer fails to sign a return within 30 days after 
the proper notice and demand for signature by the Department, 
the return shall be considered valid and any amount shown to be 
due on the return shall be deemed assessed.
    Notwithstanding any other provision of this Act to the 
contrary, retailers subject to tax on cannabis shall file all 
cannabis tax returns and shall make all cannabis tax payments 
by electronic means in the manner and form required by the 
Department.
    Beginning October 1, 1993, a taxpayer who has an average 
monthly tax liability of $150,000 or more shall make all 
payments required by rules of the Department by electronic 
funds transfer. Beginning October 1, 1994, a taxpayer who has 
an average monthly tax liability of $100,000 or more shall 
make all payments required by rules of the Department by 
electronic funds transfer. Beginning October 1, 1995, a 
taxpayer who has an average monthly tax liability of $50,000 
or more shall make all payments required by rules of the 
Department by electronic funds transfer. Beginning October 1, 
2000, a taxpayer who has an annual tax liability of $200,000 or 
more shall make all payments required by rules of the 
Department by electronic funds transfer. The term "annual tax 
liability" shall be the sum of the taxpayer's liabilities 
under this Act, and under all other State and local occupation 
and use tax laws administered by the Department, for the 
immediately preceding calendar year. The term "average monthly 
tax liability" means the sum of the taxpayer's liabilities 
under this Act, and under all other State and local occupation 
and use tax laws administered by the Department, for the 
immediately preceding calendar year divided by 12. Beginning 
on October 1, 2002, a taxpayer who has a tax liability in the 
amount set forth in subsection (b) of Section 2505-210 of the 
Department of Revenue Law shall make all payments required by 
rules of the Department by electronic funds transfer.
    Before August 1 of each year beginning in 1993, the 
Department shall notify all taxpayers required to make 
payments by electronic funds transfer. All taxpayers required 
to make payments by electronic funds transfer shall make those 
payments for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic 
funds transfer may make payments by electronic funds transfer 
with the permission of the Department.
    All taxpayers required to make payment by electronic funds 
transfer and any taxpayers authorized to voluntarily make 
payments by electronic funds transfer shall make those 
payments in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to 
effectuate a program of electronic funds transfer and the 
requirements of this Section.
    Before October 1, 2000, if the taxpayer's average monthly 
tax liability to the Department under this Act, the Retailers' 
Occupation Tax Act, the Service Occupation Tax Act, the 
Service Use Tax Act was $10,000 or more during the preceding 4 
complete calendar quarters, he shall file a return with the 
Department each month by the 20th day of the month next 
following the month during which such tax liability is 
incurred and shall make payments to the Department on or 
before the 7th, 15th, 22nd and last day of the month during 
which such liability is incurred. On and after October 1, 
2000, if the taxpayer's average monthly tax liability to the 
Department under this Act, the Retailers' Occupation Tax Act, 
the Service Occupation Tax Act, and the Service Use Tax Act was 
$20,000 or more during the preceding 4 complete calendar 
quarters, he shall file a return with the Department each 
month by the 20th day of the month next following the month 
during which such tax liability is incurred and shall make 
payment to the Department on or before the 7th, 15th, 22nd and 
last day of the month during which such liability is incurred. 
If the month during which such tax liability is incurred began 
prior to January 1, 1985, each payment shall be in an amount 
equal to 1/4 of the taxpayer's actual liability for the month 
or an amount set by the Department not to exceed 1/4 of the 
average monthly liability of the taxpayer to the Department 
for the preceding 4 complete calendar quarters (excluding the 
month of highest liability and the month of lowest liability 
in such 4 quarter period). If the month during which such tax 
liability is incurred begins on or after January 1, 1985, and 
prior to January 1, 1987, each payment shall be in an amount 
equal to 22.5% of the taxpayer's actual liability for the 
month or 27.5% of the taxpayer's liability for the same 
calendar month of the preceding year. If the month during 
which such tax liability is incurred begins on or after 
January 1, 1987, and prior to January 1, 1988, each payment 
shall be in an amount equal to 22.5% of the taxpayer's actual 
liability for the month or 26.25% of the taxpayer's liability 
for the same calendar month of the preceding year. If the month 
during which such tax liability is incurred begins on or after 
January 1, 1988, and prior to January 1, 1989, or begins on or 
after January 1, 1996, each payment shall be in an amount equal 
to 22.5% of the taxpayer's actual liability for the month or 
25% of the taxpayer's liability for the same calendar month of 
the preceding year. If the month during which such tax 
liability is incurred begins on or after January 1, 1989, and 
prior to January 1, 1996, each payment shall be in an amount 
equal to 22.5% of the taxpayer's actual liability for the 
month or 25% of the taxpayer's liability for the same calendar 
month of the preceding year or 100% of the taxpayer's actual 
liability for the quarter monthly reporting period. The amount 
of such quarter monthly payments shall be credited against the 
final tax liability of the taxpayer's return for that month. 
Before October 1, 2000, once applicable, the requirement of 
the making of quarter monthly payments to the Department shall 
continue until such taxpayer's average monthly liability to 
the Department during the preceding 4 complete calendar 
quarters (excluding the month of highest liability and the 
month of lowest liability) is less than $9,000, or until such 
taxpayer's average monthly liability to the Department as 
computed for each calendar quarter of the 4 preceding complete 
calendar quarter period is less than $10,000. However, if a 
taxpayer can show the Department that a substantial change in 
the taxpayer's business has occurred which causes the taxpayer 
to anticipate that his average monthly tax liability for the 
reasonably foreseeable future will fall below the $10,000 
threshold stated above, then such taxpayer may petition the 
Department for change in such taxpayer's reporting status. On 
and after October 1, 2000, once applicable, the requirement of 
the making of quarter monthly payments to the Department shall 
continue until such taxpayer's average monthly liability to 
the Department during the preceding 4 complete calendar 
quarters (excluding the month of highest liability and the 
month of lowest liability) is less than $19,000 or until such 
taxpayer's average monthly liability to the Department as 
computed for each calendar quarter of the 4 preceding complete 
calendar quarter period is less than $20,000. However, if a 
taxpayer can show the Department that a substantial change in 
the taxpayer's business has occurred which causes the taxpayer 
to anticipate that his average monthly tax liability for the 
reasonably foreseeable future will fall below the $20,000 
threshold stated above, then such taxpayer may petition the 
Department for a change in such taxpayer's reporting status. 
The Department shall change such taxpayer's reporting status 
unless it finds that such change is seasonal in nature and not 
likely to be long term. Quarter monthly payment status shall 
be determined under this paragraph as if the rate reduction to 
1.25% in Public Act 102-700 on sales tax holiday items had not 
occurred. For quarter monthly payments due on or after July 1, 
2023 and through June 30, 2024, "25% of the taxpayer's 
liability for the same calendar month of the preceding year" 
shall be determined as if the rate reduction to 1.25% in Public 
Act 102-700 on sales tax holiday items had not occurred. 
Quarter monthly payment status shall be determined under this 
paragraph as if the rate reduction to 0% in Public Act 102-700 
on food for human consumption that is to be consumed off the 
premises where it is sold (other than alcoholic beverages, 
food consisting of or infused with adult use cannabis, soft 
drinks, and food that has been prepared for immediate 
consumption) had not occurred. For quarter monthly payments 
due under this paragraph on or after July 1, 2023 and through 
June 30, 2024, "25% of the taxpayer's liability for the same 
calendar month of the preceding year" shall be determined as 
if the rate reduction to 0% in Public Act 102-700 had not 
occurred. If any such quarter monthly payment is not paid at 
the time or in the amount required by this Section, then the 
taxpayer shall be liable for penalties and interest on the 
difference between the minimum amount due and the amount of 
such quarter monthly payment actually and timely paid, except 
insofar as the taxpayer has previously made payments for that 
month to the Department in excess of the minimum payments 
previously due as provided in this Section. The Department 
shall make reasonable rules and regulations to govern the 
quarter monthly payment amount and quarter monthly payment 
dates for taxpayers who file on other than a calendar monthly 
basis.
    If any such payment provided for in this Section exceeds 
the taxpayer's liabilities under this Act, the Retailers' 
Occupation Tax Act, the Service Occupation Tax Act and the 
Service Use Tax Act, as shown by an original monthly return, 
the Department shall issue to the taxpayer a credit memorandum 
no later than 30 days after the date of payment, which 
memorandum may be submitted by the taxpayer to the Department 
in payment of tax liability subsequently to be remitted by the 
taxpayer to the Department or be assigned by the taxpayer to a 
similar taxpayer under this Act, the Retailers' Occupation Tax 
Act, the Service Occupation Tax Act or the Service Use Tax Act, 
in accordance with reasonable rules and regulations to be 
prescribed by the Department, except that if such excess 
payment is shown on an original monthly return and is made 
after December 31, 1986, no credit memorandum shall be issued, 
unless requested by the taxpayer. If no such request is made, 
the taxpayer may credit such excess payment against tax 
liability subsequently to be remitted by the taxpayer to the 
Department under this Act, the Retailers' Occupation Tax Act, 
the Service Occupation Tax Act or the Service Use Tax Act, in 
accordance with reasonable rules and regulations prescribed by 
the Department. If the Department subsequently determines that 
all or any part of the credit taken was not actually due to the 
taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall 
be reduced by 2.1% or 1.75% of the difference between the 
credit taken and that actually due, and the taxpayer shall be 
liable for penalties and interest on such difference.
    If the retailer is otherwise required to file a monthly 
return and if the retailer's average monthly tax liability to 
the Department does not exceed $200, the Department may 
authorize his returns to be filed on a quarter annual basis, 
with the return for January, February, and March of a given 
year being due by April 20 of such year; with the return for 
April, May and June of a given year being due by July 20 of 
such year; with the return for July, August and September of a 
given year being due by October 20 of such year, and with the 
return for October, November and December of a given year 
being due by January 20 of the following year.
    If the retailer is otherwise required to file a monthly or 
quarterly return and if the retailer's average monthly tax 
liability to the Department does not exceed $50, the 
Department may authorize his returns to be filed on an annual 
basis, with the return for a given year being due by January 20 
of the following year.
    Such quarter annual and annual returns, as to form and 
substance, shall be subject to the same requirements as 
monthly returns.
    Notwithstanding any other provision in this Act concerning 
the time within which a retailer may file his return, in the 
case of any retailer who ceases to engage in a kind of business 
which makes him responsible for filing returns under this Act, 
such retailer shall file a final return under this Act with the 
Department not more than one month after discontinuing such 
business.
    In addition, with respect to motor vehicles, watercraft, 
aircraft, and trailers that are required to be registered with 
an agency of this State, except as otherwise provided in this 
Section, every retailer selling this kind of tangible personal 
property shall file, with the Department, upon a form to be 
prescribed and supplied by the Department, a separate return 
for each such item of tangible personal property which the 
retailer sells, except that if, in the same transaction, (i) a 
retailer of aircraft, watercraft, motor vehicles or trailers 
transfers more than one aircraft, watercraft, motor vehicle or 
trailer to another aircraft, watercraft, motor vehicle or 
trailer retailer for the purpose of resale or (ii) a retailer 
of aircraft, watercraft, motor vehicles, or trailers transfers 
more than one aircraft, watercraft, motor vehicle, or trailer 
to a purchaser for use as a qualifying rolling stock as 
provided in Section 3-55 of this Act, then that seller may 
report the transfer of all the aircraft, watercraft, motor 
vehicles or trailers involved in that transaction to the 
Department on the same uniform invoice-transaction reporting 
return form. For purposes of this Section, "watercraft" means 
a Class 2, Class 3, or Class 4 watercraft as defined in Section 
3-2 of the Boat Registration and Safety Act, a personal 
watercraft, or any boat equipped with an inboard motor.
    In addition, with respect to motor vehicles, watercraft, 
aircraft, and trailers that are required to be registered with 
an agency of this State, every person who is engaged in the 
business of leasing or renting such items and who, in 
connection with such business, sells any such item to a 
retailer for the purpose of resale is, notwithstanding any 
other provision of this Section to the contrary, authorized to 
meet the return-filing requirement of this Act by reporting 
the transfer of all the aircraft, watercraft, motor vehicles, 
or trailers transferred for resale during a month to the 
Department on the same uniform invoice-transaction reporting 
return form on or before the 20th of the month following the 
month in which the transfer takes place. Notwithstanding any 
other provision of this Act to the contrary, all returns filed 
under this paragraph must be filed by electronic means in the 
manner and form as required by the Department. 
    The transaction reporting return in the case of motor 
vehicles or trailers that are required to be registered with 
an agency of this State, shall be the same document as the 
Uniform Invoice referred to in Section 5-402 of the Illinois 
Vehicle Code and must show the name and address of the seller; 
the name and address of the purchaser; the amount of the 
selling price including the amount allowed by the retailer for 
traded-in property, if any; the amount allowed by the retailer 
for the traded-in tangible personal property, if any, to the 
extent to which Section 2 of this Act allows an exemption for 
the value of traded-in property; the balance payable after 
deducting such trade-in allowance from the total selling 
price; the amount of tax due from the retailer with respect to 
such transaction; the amount of tax collected from the 
purchaser by the retailer on such transaction (or satisfactory 
evidence that such tax is not due in that particular instance, 
if that is claimed to be the fact); the place and date of the 
sale; a sufficient identification of the property sold; such 
other information as is required in Section 5-402 of the 
Illinois Vehicle Code, and such other information as the 
Department may reasonably require.
    The transaction reporting return in the case of watercraft 
and aircraft must show the name and address of the seller; the 
name and address of the purchaser; the amount of the selling 
price including the amount allowed by the retailer for 
traded-in property, if any; the amount allowed by the retailer 
for the traded-in tangible personal property, if any, to the 
extent to which Section 2 of this Act allows an exemption for 
the value of traded-in property; the balance payable after 
deducting such trade-in allowance from the total selling 
price; the amount of tax due from the retailer with respect to 
such transaction; the amount of tax collected from the 
purchaser by the retailer on such transaction (or satisfactory 
evidence that such tax is not due in that particular instance, 
if that is claimed to be the fact); the place and date of the 
sale, a sufficient identification of the property sold, and 
such other information as the Department may reasonably 
require.
    Such transaction reporting return shall be filed not later 
than 20 days after the date of delivery of the item that is 
being sold, but may be filed by the retailer at any time sooner 
than that if he chooses to do so. The transaction reporting 
return and tax remittance or proof of exemption from the tax 
that is imposed by this Act may be transmitted to the 
Department by way of the State agency with which, or State 
officer with whom, the tangible personal property must be 
titled or registered (if titling or registration is required) 
if the Department and such agency or State officer determine 
that this procedure will expedite the processing of 
applications for title or registration.
    With each such transaction reporting return, the retailer 
shall remit the proper amount of tax due (or shall submit 
satisfactory evidence that the sale is not taxable if that is 
the case), to the Department or its agents, whereupon the 
Department shall issue, in the purchaser's name, a tax receipt 
(or a certificate of exemption if the Department is satisfied 
that the particular sale is tax exempt) which such purchaser 
may submit to the agency with which, or State officer with 
whom, he must title or register the tangible personal property 
that is involved (if titling or registration is required) in 
support of such purchaser's application for an Illinois 
certificate or other evidence of title or registration to such 
tangible personal property.
    No retailer's failure or refusal to remit tax under this 
Act precludes a user, who has paid the proper tax to the 
retailer, from obtaining his certificate of title or other 
evidence of title or registration (if titling or registration 
is required) upon satisfying the Department that such user has 
paid the proper tax (if tax is due) to the retailer. The 
Department shall adopt appropriate rules to carry out the 
mandate of this paragraph.
    If the user who would otherwise pay tax to the retailer 
wants the transaction reporting return filed and the payment 
of tax or proof of exemption made to the Department before the 
retailer is willing to take these actions and such user has not 
paid the tax to the retailer, such user may certify to the fact 
of such delay by the retailer, and may (upon the Department 
being satisfied of the truth of such certification) transmit 
the information required by the transaction reporting return 
and the remittance for tax or proof of exemption directly to 
the Department and obtain his tax receipt or exemption 
determination, in which event the transaction reporting return 
and tax remittance (if a tax payment was required) shall be 
credited by the Department to the proper retailer's account 
with the Department, but without the 2.1% or 1.75% discount 
provided for in this Section being allowed. When the user pays 
the tax directly to the Department, he shall pay the tax in the 
same amount and in the same form in which it would be remitted 
if the tax had been remitted to the Department by the retailer.
    Where a retailer collects the tax with respect to the 
selling price of tangible personal property which he sells and 
the purchaser thereafter returns such tangible personal 
property and the retailer refunds the selling price thereof to 
the purchaser, such retailer shall also refund, to the 
purchaser, the tax so collected from the purchaser. When 
filing his return for the period in which he refunds such tax 
to the purchaser, the retailer may deduct the amount of the tax 
so refunded by him to the purchaser from any other use tax 
which such retailer may be required to pay or remit to the 
Department, as shown by such return, if the amount of the tax 
to be deducted was previously remitted to the Department by 
such retailer. If the retailer has not previously remitted the 
amount of such tax to the Department, he is entitled to no 
deduction under this Act upon refunding such tax to the 
purchaser.
    Any retailer filing a return under this Section shall also 
include (for the purpose of paying tax thereon) the total tax 
covered by such return upon the selling price of tangible 
personal property purchased by him at retail from a retailer, 
but as to which the tax imposed by this Act was not collected 
from the retailer filing such return, and such retailer shall 
remit the amount of such tax to the Department when filing such 
return.
    If experience indicates such action to be practicable, the 
Department may prescribe and furnish a combination or joint 
return which will enable retailers, who are required to file 
returns hereunder and also under the Retailers' Occupation Tax 
Act, to furnish all the return information required by both 
Acts on the one form.
    Where the retailer has more than one business registered 
with the Department under separate registration under this 
Act, such retailer may not file each return that is due as a 
single return covering all such registered businesses, but 
shall file separate returns for each such registered business.
    Beginning January 1, 1990, each month the Department shall 
pay into the State and Local Sales Tax Reform Fund, a special 
fund in the State Treasury which is hereby created, the net 
revenue realized for the preceding month from the 1% tax 
imposed under this Act.
    Beginning January 1, 1990, each month the Department shall 
pay into the County and Mass Transit District Fund 4% of the 
net revenue realized for the preceding month from the 6.25% 
general rate on the selling price of tangible personal 
property which is purchased outside Illinois at retail from a 
retailer and which is titled or registered by an agency of this 
State's government.
    Beginning January 1, 1990, each month the Department shall 
pay into the State and Local Sales Tax Reform Fund, a special 
fund in the State Treasury, 20% of the net revenue realized for 
the preceding month from the 6.25% general rate on the selling 
price of tangible personal property, other than (i) tangible 
personal property which is purchased outside Illinois at 
retail from a retailer and which is titled or registered by an 
agency of this State's government and (ii) aviation fuel sold 
on or after December 1, 2019. This exception for aviation fuel 
only applies for so long as the revenue use requirements of 49 
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
    For aviation fuel sold on or after December 1, 2019, each 
month the Department shall pay into the State Aviation Program 
Fund 20% of the net revenue realized for the preceding month 
from the 6.25% general rate on the selling price of aviation 
fuel, less an amount estimated by the Department to be 
required for refunds of the 20% portion of the tax on aviation 
fuel under this Act, which amount shall be deposited into the 
Aviation Fuel Sales Tax Refund Fund. The Department shall only 
pay moneys into the State Aviation Program Fund and the 
Aviation Fuels Sales Tax Refund Fund under this Act for so long 
as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133 are binding on the State. 
    Beginning August 1, 2000, each month the Department shall 
pay into the State and Local Sales Tax Reform Fund 100% of the 
net revenue realized for the preceding month from the 1.25% 
rate on the selling price of motor fuel and gasohol. If, in any 
month, the tax on sales tax holiday items, as defined in 
Section 3-6, is imposed at the rate of 1.25%, then the 
Department shall pay 100% of the net revenue realized for that 
month from the 1.25% rate on the selling price of sales tax 
holiday items into the State and Local Sales Tax Reform Fund.
    Beginning January 1, 1990, each month the Department shall 
pay into the Local Government Tax Fund 16% of the net revenue 
realized for the preceding month from the 6.25% general rate 
on the selling price of tangible personal property which is 
purchased outside Illinois at retail from a retailer and which 
is titled or registered by an agency of this State's 
government.
    Beginning October 1, 2009, each month the Department shall 
pay into the Capital Projects Fund an amount that is equal to 
an amount estimated by the Department to represent 80% of the 
net revenue realized for the preceding month from the sale of 
candy, grooming and hygiene products, and soft drinks that had 
been taxed at a rate of 1% prior to September 1, 2009 but that 
are now taxed at 6.25%. 
    Beginning July 1, 2011, each month the Department shall 
pay into the Clean Air Act Permit Fund 80% of the net revenue 
realized for the preceding month from the 6.25% general rate 
on the selling price of sorbents used in Illinois in the 
process of sorbent injection as used to comply with the 
Environmental Protection Act or the federal Clean Air Act, but 
the total payment into the Clean Air Act Permit Fund under this 
Act and the Retailers' Occupation Tax Act shall not exceed 
$2,000,000 in any fiscal year. 
    Beginning July 1, 2013, each month the Department shall 
pay into the Underground Storage Tank Fund from the proceeds 
collected under this Act, the Service Use Tax Act, the Service 
Occupation Tax Act, and the Retailers' Occupation Tax Act an 
amount equal to the average monthly deficit in the Underground 
Storage Tank Fund during the prior year, as certified annually 
by the Illinois Environmental Protection Agency, but the total 
payment into the Underground Storage Tank Fund under this Act, 
the Service Use Tax Act, the Service Occupation Tax Act, and 
the Retailers' Occupation Tax Act shall not exceed $18,000,000 
in any State fiscal year. As used in this paragraph, the 
"average monthly deficit" shall be equal to the difference 
between the average monthly claims for payment by the fund and 
the average monthly revenues deposited into the fund, 
excluding payments made pursuant to this paragraph. 
    Beginning July 1, 2015, of the remainder of the moneys 
received by the Department under this Act, the Service Use Tax 
Act, the Service Occupation Tax Act, and the Retailers' 
Occupation Tax Act, each month the Department shall deposit 
$500,000 into the State Crime Laboratory Fund. 
    Of the remainder of the moneys received by the Department 
pursuant to this Act, (a) 1.75% thereof shall be paid into the 
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 
and after July 1, 1989, 3.8% thereof shall be paid into the 
Build Illinois Fund; provided, however, that if in any fiscal 
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case 
may be, of the moneys received by the Department and required 
to be paid into the Build Illinois Fund pursuant to Section 3 
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax 
Act, Section 9 of the Service Use Tax Act, and Section 9 of the 
Service Occupation Tax Act, such Acts being hereinafter called 
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case 
may be, of moneys being hereinafter called the "Tax Act 
Amount", and (2) the amount transferred to the Build Illinois 
Fund from the State and Local Sales Tax Reform Fund shall be 
less than the Annual Specified Amount (as defined in Section 3 
of the Retailers' Occupation Tax Act), an amount equal to the 
difference shall be immediately paid into the Build Illinois 
Fund from other moneys received by the Department pursuant to 
the Tax Acts; and further provided, that if on the last 
business day of any month the sum of (1) the Tax Act Amount 
required to be deposited into the Build Illinois Bond Account 
in the Build Illinois Fund during such month and (2) the amount 
transferred during such month to the Build Illinois Fund from 
the State and Local Sales Tax Reform Fund shall have been less 
than 1/12 of the Annual Specified Amount, an amount equal to 
the difference shall be immediately paid into the Build 
Illinois Fund from other moneys received by the Department 
pursuant to the Tax Acts; and, further provided, that in no 
event shall the payments required under the preceding proviso 
result in aggregate payments into the Build Illinois Fund 
pursuant to this clause (b) for any fiscal year in excess of 
the greater of (i) the Tax Act Amount or (ii) the Annual 
Specified Amount for such fiscal year; and, further provided, 
that the amounts payable into the Build Illinois Fund under 
this clause (b) shall be payable only until such time as the 
aggregate amount on deposit under each trust indenture 
securing Bonds issued and outstanding pursuant to the Build 
Illinois Bond Act is sufficient, taking into account any 
future investment income, to fully provide, in accordance with 
such indenture, for the defeasance of or the payment of the 
principal of, premium, if any, and interest on the Bonds 
secured by such indenture and on any Bonds expected to be 
issued thereafter and all fees and costs payable with respect 
thereto, all as certified by the Director of the Bureau of the 
Budget (now Governor's Office of Management and Budget). If on 
the last business day of any month in which Bonds are 
outstanding pursuant to the Build Illinois Bond Act, the 
aggregate of the moneys deposited in the Build Illinois Bond 
Account in the Build Illinois Fund in such month shall be less 
than the amount required to be transferred in such month from 
the Build Illinois Bond Account to the Build Illinois Bond 
Retirement and Interest Fund pursuant to Section 13 of the 
Build Illinois Bond Act, an amount equal to such deficiency 
shall be immediately paid from other moneys received by the 
Department pursuant to the Tax Acts to the Build Illinois 
Fund; provided, however, that any amounts paid to the Build 
Illinois Fund in any fiscal year pursuant to this sentence 
shall be deemed to constitute payments pursuant to clause (b) 
of the preceding sentence and shall reduce the amount 
otherwise payable for such fiscal year pursuant to clause (b) 
of the preceding sentence. The moneys received by the 
Department pursuant to this Act and required to be deposited 
into the Build Illinois Fund are subject to the pledge, claim 
and charge set forth in Section 12 of the Build Illinois Bond 
Act.
    Subject to payment of amounts into the Build Illinois Fund 
as provided in the preceding paragraph or in any amendment 
thereto hereafter enacted, the following specified monthly 
installment of the amount requested in the certificate of the 
Chairman of the Metropolitan Pier and Exposition Authority 
provided under Section 8.25f of the State Finance Act, but not 
in excess of the sums designated as "Total Deposit", shall be 
deposited in the aggregate from collections under Section 9 of 
the Use Tax Act, Section 9 of the Service Use Tax Act, Section 
9 of the Service Occupation Tax Act, and Section 3 of the 
Retailers' Occupation Tax Act into the McCormick Place 
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021300,000,000
2022300,000,000
2023300,000,000
2024 300,000,000
2025 300,000,000
       
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000 
2034375,000,000
2035375,000,000
2036450,000,000
and  
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal 
year thereafter, one-eighth of the amount requested in the 
certificate of the Chairman of the Metropolitan Pier and 
Exposition Authority for that fiscal year, less the amount 
deposited into the McCormick Place Expansion Project Fund by 
the State Treasurer in the respective month under subsection 
(g) of Section 13 of the Metropolitan Pier and Exposition 
Authority Act, plus cumulative deficiencies in the deposits 
required under this Section for previous months and years, 
shall be deposited into the McCormick Place Expansion Project 
Fund, until the full amount requested for the fiscal year, but 
not in excess of the amount specified above as "Total 
Deposit", has been deposited.
    Subject to payment of amounts into the Capital Projects 
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, 
and the McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs or in any amendments thereto hereafter 
enacted, for aviation fuel sold on or after December 1, 2019, 
the Department shall each month deposit into the Aviation Fuel 
Sales Tax Refund Fund an amount estimated by the Department to 
be required for refunds of the 80% portion of the tax on 
aviation fuel under this Act. The Department shall only 
deposit moneys into the Aviation Fuel Sales Tax Refund Fund 
under this paragraph for so long as the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
binding on the State. 
    Subject to payment of amounts into the Build Illinois Fund 
and the McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs or in any amendments thereto hereafter 
enacted, beginning July 1, 1993 and ending on September 30, 
2013, the Department shall each month pay into the Illinois 
Tax Increment Fund 0.27% of 80% of the net revenue realized for 
the preceding month from the 6.25% general rate on the selling 
price of tangible personal property.
    Subject to payment of amounts into the Build Illinois 
Fund, the McCormick Place Expansion Project Fund, the Illinois 
Tax Increment Fund, and the Energy Infrastructure Fund 
pursuant to the preceding paragraphs or in any amendments to 
this Section hereafter enacted, beginning on the first day of 
the first calendar month to occur on or after August 26, 2014 
(the effective date of Public Act 98-1098), each month, from 
the collections made under Section 9 of the Use Tax Act, 
Section 9 of the Service Use Tax Act, Section 9 of the Service 
Occupation Tax Act, and Section 3 of the Retailers' Occupation 
Tax Act, the Department shall pay into the Tax Compliance and 
Administration Fund, to be used, subject to appropriation, to 
fund additional auditors and compliance personnel at the 
Department of Revenue, an amount equal to 1/12 of 5% of 80% of 
the cash receipts collected during the preceding fiscal year 
by the Audit Bureau of the Department under the Use Tax Act, 
the Service Use Tax Act, the Service Occupation Tax Act, the 
Retailers' Occupation Tax Act, and associated local occupation 
and use taxes administered by the Department. 
    Subject to payments of amounts into the Build Illinois 
Fund, the McCormick Place Expansion Project Fund, the Illinois 
Tax Increment Fund, and the Tax Compliance and Administration 
Fund as provided in this Section, beginning on July 1, 2018 the 
Department shall pay each month into the Downstate Public 
Transportation Fund the moneys required to be so paid under 
Section 2-3 of the Downstate Public Transportation Act.
    Subject to successful execution and delivery of a 
public-private agreement between the public agency and private 
entity and completion of the civic build, beginning on July 1, 
2023, of the remainder of the moneys received by the 
Department under the Use Tax Act, the Service Use Tax Act, the 
Service Occupation Tax Act, and this Act, the Department shall 
deposit the following specified deposits in the aggregate from 
collections under the Use Tax Act, the Service Use Tax Act, the 
Service Occupation Tax Act, and the Retailers' Occupation Tax 
Act, as required under Section 8.25g of the State Finance Act 
for distribution consistent with the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
The moneys received by the Department pursuant to this Act and 
required to be deposited into the Civic and Transit 
Infrastructure Fund are subject to the pledge, claim, and 
charge set forth in Section 25-55 of the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
As used in this paragraph, "civic build", "private entity", 
"public-private agreement", and "public agency" have the 
meanings provided in Section 25-10 of the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
        Fiscal Year............................Total Deposit 
        2024....................................$200,000,000 
        2025....................................$206,000,000 
        2026....................................$212,200,000 
        2027....................................$218,500,000 
        2028....................................$225,100,000 
        2029....................................$288,700,000 
        2030....................................$298,900,000 
        2031....................................$309,300,000 
        2032....................................$320,100,000 
        2033....................................$331,200,000 
        2034....................................$341,200,000 
        2035....................................$351,400,000 
        2036....................................$361,900,000 
        2037....................................$372,800,000 
        2038....................................$384,000,000 
        2039....................................$395,500,000 
        2040....................................$407,400,000 
        2041....................................$419,600,000 
        2042....................................$432,200,000 
        2043....................................$445,100,000 
    Beginning July 1, 2021 and until July 1, 2022, subject to 
the payment of amounts into the State and Local Sales Tax 
Reform Fund, the Build Illinois Fund, the McCormick Place 
Expansion Project Fund, the Illinois Tax Increment Fund, and 
the Tax Compliance and Administration Fund as provided in this 
Section, the Department shall pay each month into the Road 
Fund the amount estimated to represent 16% of the net revenue 
realized from the taxes imposed on motor fuel and gasohol. 
Beginning July 1, 2022 and until July 1, 2023, subject to the 
payment of amounts into the State and Local Sales Tax Reform 
Fund, the Build Illinois Fund, the McCormick Place Expansion 
Project Fund, the Illinois Tax Increment Fund, and the Tax 
Compliance and Administration Fund as provided in this 
Section, the Department shall pay each month into the Road 
Fund the amount estimated to represent 32% of the net revenue 
realized from the taxes imposed on motor fuel and gasohol. 
Beginning July 1, 2023 and until July 1, 2024, subject to the 
payment of amounts into the State and Local Sales Tax Reform 
Fund, the Build Illinois Fund, the McCormick Place Expansion 
Project Fund, the Illinois Tax Increment Fund, and the Tax 
Compliance and Administration Fund as provided in this 
Section, the Department shall pay each month into the Road 
Fund the amount estimated to represent 48% of the net revenue 
realized from the taxes imposed on motor fuel and gasohol. 
Beginning July 1, 2024 and until July 1, 2025, subject to the 
payment of amounts into the State and Local Sales Tax Reform 
Fund, the Build Illinois Fund, the McCormick Place Expansion 
Project Fund, the Illinois Tax Increment Fund, and the Tax 
Compliance and Administration Fund as provided in this 
Section, the Department shall pay each month into the Road 
Fund the amount estimated to represent 64% of the net revenue 
realized from the taxes imposed on motor fuel and gasohol. 
Beginning on July 1, 2025, subject to the payment of amounts 
into the State and Local Sales Tax Reform Fund, the Build 
Illinois Fund, the McCormick Place Expansion Project Fund, the 
Illinois Tax Increment Fund, and the Tax Compliance and 
Administration Fund as provided in this Section, the 
Department shall pay each month into the Road Fund the amount 
estimated to represent 80% of the net revenue realized from 
the taxes imposed on motor fuel and gasohol. As used in this 
paragraph "motor fuel" has the meaning given to that term in 
Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the 
meaning given to that term in Section 3-40 of this Act.
    Of the remainder of the moneys received by the Department 
pursuant to this Act, 75% thereof shall be paid into the State 
Treasury and 25% shall be reserved in a special account and 
used only for the transfer to the Common School Fund as part of 
the monthly transfer from the General Revenue Fund in 
accordance with Section 8a of the State Finance Act.
    As soon as possible after the first day of each month, upon 
certification of the Department of Revenue, the Comptroller 
shall order transferred and the Treasurer shall transfer from 
the General Revenue Fund to the Motor Fuel Tax Fund an amount 
equal to 1.7% of 80% of the net revenue realized under this Act 
for the second preceding month. Beginning April 1, 2000, this 
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue 
collected by the State pursuant to this Act, less the amount 
paid out during that month as refunds to taxpayers for 
overpayment of liability.
    For greater simplicity of administration, manufacturers, 
importers and wholesalers whose products are sold at retail in 
Illinois by numerous retailers, and who wish to do so, may 
assume the responsibility for accounting and paying to the 
Department all tax accruing under this Act with respect to 
such sales, if the retailers who are affected do not make 
written objection to the Department to this arrangement.
(Source: P.A. 102-700, Article 60, Section 60-15, eff. 
4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22; 
102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff. 
7-28-23.)
 
    Section 75-10. The Service Use Tax Act is amended by 
changing Sections 2, 3, 3-5, 3-10, and 9 and by adding Section 
1.05 as follows:
 
    (35 ILCS 110/1.05 new)
    Sec. 1.05. Legislative intent; leases. It is the intent of 
the General Assembly in enacting this amendatory Act of the 
103rd General Assembly to apply the tax imposed under this 
Act, except as otherwise provided in this Act, to the 
privilege of using tangible personal property, other than 
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, 
transferred by lease, as an incident of a purchase of service, 
for leases in effect, entered into, or renewed on or after 
January 1, 2025.
 
    (35 ILCS 110/2)  (from Ch. 120, par. 439.32)
    Sec. 2. Definitions.  In this Act: 
    "Use" means the exercise by any person of any right or 
power over tangible personal property incident to the 
ownership of that property, or, on and after January 1, 2025, 
incident to the possession or control of, the right to possess 
or control, or a license to use that property through a lease, 
but does not include the sale or use for demonstration by him 
of that property in any form as tangible personal property in 
the regular course of business. "Use" does not mean the 
interim use of tangible personal property. On and after 
January 1, 2025, the lease of tangible personal property to a 
lessee by a serviceman who is subject to tax on lease receipts 
under this amendatory Act of the 103rd General Assembly does 
not qualify as demonstration use or interim use of that 
property. "Use" does not mean nor the physical incorporation 
of tangible personal property, as an ingredient or 
constituent, into other tangible personal property, (a) which 
is sold in the regular course of business or (b) which the 
person incorporating such ingredient or constituent therein 
has undertaken at the time of such purchase to cause to be 
transported in interstate commerce to destinations outside the 
State of Illinois.
    "Lease" means a transfer of the possession or control of, 
the right to possess or control, or a license to use, but not 
title to, tangible personal property for a fixed or 
indeterminate term for consideration, regardless of the name 
by which the transaction is called. "Lease" does not include a 
lease entered into merely as a security agreement that does 
not involve a transfer of possession from the lessor to the 
lessee.
    On and after January 1, 2025, the term "sale", when used in 
this Act with respect to tangible personal property, includes 
a lease. 
    "Purchased from a serviceman" means the acquisition of the 
ownership of, the or title to, the possession or control of, 
the right to possess or control, or a license to use, tangible 
personal property through a sale of service.
    "Purchaser" means any person who, through a sale of 
service, acquires the ownership of, the or title to, the 
possession or control of, the right to possess or control, or a 
license to use, any tangible personal property.
    "Cost price" means the consideration paid by the 
serviceman for a purchase, including, on and after January 1, 
2025, a lease, valued in money, whether paid in money or 
otherwise, including cash, credits and services, and shall be 
determined without any deduction on account of the supplier's 
cost of the property sold or on account of any other expense 
incurred by the supplier. When a serviceman contracts out part 
or all of the services required in his sale of service, it 
shall be presumed that the cost price to the serviceman of the 
property transferred to him or her by his or her subcontractor 
is equal to 50% of the subcontractor's charges to the 
serviceman in the absence of proof of the consideration paid 
by the subcontractor for the purchase of such property.
    "Selling price" means the consideration for a sale, 
including, on and after January 1, 2025, a lease, valued in 
money whether received in money or otherwise, including cash, 
credits and service, and shall be determined without any 
deduction on account of the serviceman's cost of the property 
sold, the cost of materials used, labor or service cost or any 
other expense whatsoever, but does not include interest or 
finance charges which appear as separate items on the bill of 
sale or sales contract nor charges that are added to prices by 
sellers on account of the seller's duty to collect, from the 
purchaser, the tax that is imposed by this Act.
    "Department" means the Department of Revenue.
    "Person" means any natural individual, firm, partnership, 
association, joint stock company, joint venture, public or 
private corporation, limited liability company, and any 
receiver, executor, trustee, guardian or other representative 
appointed by order of any court.
    "Sale of service" means any transaction except:
        (1) a retail sale of tangible personal property 
    taxable under the Retailers' Occupation Tax Act or under 
    the Use Tax Act.
        (2) a sale of tangible personal property for the 
    purpose of resale made in compliance with Section 2c of 
    the Retailers' Occupation Tax Act.
        (3) except as hereinafter provided, a sale or transfer 
    of tangible personal property as an incident to the 
    rendering of service for or by any governmental body, or 
    for or by any corporation, society, association, 
    foundation or institution organized and operated 
    exclusively for charitable, religious or educational 
    purposes or any not-for-profit corporation, society, 
    association, foundation, institution or organization which 
    has no compensated officers or employees and which is 
    organized and operated primarily for the recreation of 
    persons 55 years of age or older. A limited liability 
    company may qualify for the exemption under this paragraph 
    only if the limited liability company is organized and 
    operated exclusively for educational purposes.
        (4) (blank).
        (4a) a sale or transfer of tangible personal property 
    as an incident to the rendering of service for owners or , 
    lessors, lessees, or shippers of tangible personal 
    property which is utilized by interstate carriers for hire 
    for use as rolling stock moving in interstate commerce so 
    long as so used by interstate carriers for hire, and 
    equipment operated by a telecommunications provider, 
    licensed as a common carrier by the Federal Communications 
    Commission, which is permanently installed in or affixed 
    to aircraft moving in interstate commerce.
        (4a-5) on and after July 1, 2003 and through June 30, 
    2004, a sale or transfer of a motor vehicle of the second 
    division with a gross vehicle weight in excess of 8,000 
    pounds as an incident to the rendering of service if that 
    motor vehicle is subject to the commercial distribution 
    fee imposed under Section 3-815.1 of the Illinois Vehicle 
    Code. Beginning on July 1, 2004 and through June 30, 2005, 
    the use in this State of motor vehicles of the second 
    division: (i) with a gross vehicle weight rating in excess 
    of 8,000 pounds; (ii) that are subject to the commercial 
    distribution fee imposed under Section 3-815.1 of the 
    Illinois Vehicle Code; and (iii) that are primarily used 
    for commercial purposes. Through June 30, 2005, this 
    exemption applies to repair and replacement parts added 
    after the initial purchase of such a motor vehicle if that 
    motor vehicle is used in a manner that would qualify for 
    the rolling stock exemption otherwise provided for in this 
    Act. For purposes of this paragraph, "used for commercial 
    purposes" means the transportation of persons or property 
    in furtherance of any commercial or industrial enterprise 
    whether for-hire or not. 
        (5) a sale or transfer of machinery and equipment used 
    primarily in the process of the manufacturing or 
    assembling, either in an existing, an expanded or a new 
    manufacturing facility, of tangible personal property for 
    wholesale or retail sale or lease, whether such sale or 
    lease is made directly by the manufacturer or by some 
    other person, whether the materials used in the process 
    are owned by the manufacturer or some other person, or 
    whether such sale or lease is made apart from or as an 
    incident to the seller's engaging in a service occupation 
    and the applicable tax is a Service Use Tax or Service 
    Occupation Tax, rather than Use Tax or Retailers' 
    Occupation Tax. The exemption provided by this paragraph 
    (5) includes production related tangible personal 
    property, as defined in Section 3-50 of the Use Tax Act, 
    purchased on or after July 1, 2019. The exemption provided 
    by this paragraph (5) does not include machinery and 
    equipment used in (i) the generation of electricity for 
    wholesale or retail sale; (ii) the generation or treatment 
    of natural or artificial gas for wholesale or retail sale 
    that is delivered to customers through pipes, pipelines, 
    or mains; or (iii) the treatment of water for wholesale or 
    retail sale that is delivered to customers through pipes, 
    pipelines, or mains. The provisions of Public Act 98-583 
    are declaratory of existing law as to the meaning and 
    scope of this exemption. The exemption under this 
    paragraph (5) is exempt from the provisions of Section 
    3-75. 
        (5a) the repairing, reconditioning or remodeling, for 
    a common carrier by rail, of tangible personal property 
    which belongs to such carrier for hire, and as to which 
    such carrier receives the physical possession of the 
    repaired, reconditioned or remodeled item of tangible 
    personal property in Illinois, and which such carrier 
    transports, or shares with another common carrier in the 
    transportation of such property, out of Illinois on a 
    standard uniform bill of lading showing the person who 
    repaired, reconditioned or remodeled the property to a 
    destination outside Illinois, for use outside Illinois.
        (5b) a sale or transfer of tangible personal property 
    which is produced by the seller thereof on special order 
    in such a way as to have made the applicable tax the 
    Service Occupation Tax or the Service Use Tax, rather than 
    the Retailers' Occupation Tax or the Use Tax, for an 
    interstate carrier by rail which receives the physical 
    possession of such property in Illinois, and which 
    transports such property, or shares with another common 
    carrier in the transportation of such property, out of 
    Illinois on a standard uniform bill of lading showing the 
    seller of the property as the shipper or consignor of such 
    property to a destination outside Illinois, for use 
    outside Illinois.
        (6) until July 1, 2003, a sale or transfer of 
    distillation machinery and equipment, sold as a unit or 
    kit and assembled or installed by the retailer, which 
    machinery and equipment is certified by the user to be 
    used only for the production of ethyl alcohol that will be 
    used for consumption as motor fuel or as a component of 
    motor fuel for the personal use of such user and not 
    subject to sale or resale.
        (7) at the election of any serviceman not required to 
    be otherwise registered as a retailer under Section 2a of 
    the Retailers' Occupation Tax Act, made for each fiscal 
    year sales of service in which the aggregate annual cost 
    price of tangible personal property transferred as an 
    incident to the sales of service is less than 35%, or 75% 
    in the case of servicemen transferring prescription drugs 
    or servicemen engaged in graphic arts production, of the 
    aggregate annual total gross receipts from all sales of 
    service. The purchase of such tangible personal property 
    by the serviceman shall be subject to tax under the 
    Retailers' Occupation Tax Act and the Use Tax Act. 
    However, if a primary serviceman who has made the election 
    described in this paragraph subcontracts service work to a 
    secondary serviceman who has also made the election 
    described in this paragraph, the primary serviceman does 
    not incur a Use Tax liability if the secondary serviceman 
    (i) has paid or will pay Use Tax on his or her cost price 
    of any tangible personal property transferred to the 
    primary serviceman and (ii) certifies that fact in writing 
    to the primary serviceman.
    Tangible personal property transferred incident to the 
completion of a maintenance agreement is exempt from the tax 
imposed pursuant to this Act.
    Exemption (5) also includes machinery and equipment used 
in the general maintenance or repair of such exempt machinery 
and equipment or for in-house manufacture of exempt machinery 
and equipment. On and after July 1, 2017, exemption (5) also 
includes graphic arts machinery and equipment, as defined in 
paragraph (5) of Section 3-5. The machinery and equipment 
exemption does not include machinery and equipment used in (i) 
the generation of electricity for wholesale or retail sale; 
(ii) the generation or treatment of natural or artificial gas 
for wholesale or retail sale that is delivered to customers 
through pipes, pipelines, or mains; or (iii) the treatment of 
water for wholesale or retail sale that is delivered to 
customers through pipes, pipelines, or mains. The provisions 
of Public Act 98-583 are declaratory of existing law as to the 
meaning and scope of this exemption. For the purposes of 
exemption (5), each of these terms shall have the following 
meanings: (1) "manufacturing process" shall mean the 
production of any article of tangible personal property, 
whether such article is a finished product or an article for 
use in the process of manufacturing or assembling a different 
article of tangible personal property, by procedures commonly 
regarded as manufacturing, processing, fabricating, or 
refining which changes some existing material or materials 
into a material with a different form, use or name. In relation 
to a recognized integrated business composed of a series of 
operations which collectively constitute manufacturing, or 
individually constitute manufacturing operations, the 
manufacturing process shall be deemed to commence with the 
first operation or stage of production in the series, and 
shall not be deemed to end until the completion of the final 
product in the last operation or stage of production in the 
series; and further, for purposes of exemption (5), 
photoprocessing is deemed to be a manufacturing process of 
tangible personal property for wholesale or retail sale; (2) 
"assembling process" shall mean the production of any article 
of tangible personal property, whether such article is a 
finished product or an article for use in the process of 
manufacturing or assembling a different article of tangible 
personal property, by the combination of existing materials in 
a manner commonly regarded as assembling which results in a 
material of a different form, use or name; (3) "machinery" 
shall mean major mechanical machines or major components of 
such machines contributing to a manufacturing or assembling 
process; and (4) "equipment" shall include any independent 
device or tool separate from any machinery but essential to an 
integrated manufacturing or assembly process; including 
computers used primarily in a manufacturer's computer assisted 
design, computer assisted manufacturing (CAD/CAM) system; or 
any subunit or assembly comprising a component of any 
machinery or auxiliary, adjunct or attachment parts of 
machinery, such as tools, dies, jigs, fixtures, patterns and 
molds; or any parts which require periodic replacement in the 
course of normal operation; but shall not include hand tools. 
Equipment includes chemicals or chemicals acting as catalysts 
but only if the chemicals or chemicals acting as catalysts 
effect a direct and immediate change upon a product being 
manufactured or assembled for wholesale or retail sale or 
lease. The purchaser of such machinery and equipment who has 
an active resale registration number shall furnish such number 
to the seller at the time of purchase. The purchaser of such 
machinery and equipment and tools without an active resale 
registration number shall prepare a certificate of exemption 
stating facts establishing the exemption, which certificate 
shall be available to the Department for inspection or audit. 
The Department shall prescribe the form of the certificate.
    Any informal rulings, opinions or letters issued by the 
Department in response to an inquiry or request for any 
opinion from any person regarding the coverage and 
applicability of exemption (5) to specific devices shall be 
published, maintained as a public record, and made available 
for public inspection and copying. If the informal ruling, 
opinion or letter contains trade secrets or other confidential 
information, where possible the Department shall delete such 
information prior to publication. Whenever such informal 
rulings, opinions, or letters contain any policy of general 
applicability, the Department shall formulate and adopt such 
policy as a rule in accordance with the provisions of the 
Illinois Administrative Procedure Act.
    On and after July 1, 1987, no entity otherwise eligible 
under exemption (3) of this Section shall make tax-free 
purchases unless it has an active exemption identification 
number issued by the Department.
    The purchase, employment and transfer of such tangible 
personal property as newsprint and ink for the primary purpose 
of conveying news (with or without other information) is not a 
purchase, use or sale of service or of tangible personal 
property within the meaning of this Act.
    "Serviceman" means any person who is engaged in the 
occupation of making sales of service.
    "Sale at retail" means "sale at retail" as defined in the 
Retailers' Occupation Tax Act, which, on and after January 1, 
2025, is defined to include leases.
    "Supplier" means any person who makes sales of tangible 
personal property to servicemen for the purpose of resale as 
an incident to a sale of service.
    "Serviceman maintaining a place of business in this 
State", or any like term, means and includes any serviceman:
        (1) having or maintaining within this State, directly 
    or by a subsidiary, an office, distribution house, sales 
    house, warehouse or other place of business, or any agent 
    or other representative operating within this State under 
    the authority of the serviceman or its subsidiary, 
    irrespective of whether such place of business or agent or 
    other representative is located here permanently or 
    temporarily, or whether such serviceman or subsidiary is 
    licensed to do business in this State;
        (1.1) having a contract with a person located in this 
    State under which the person, for a commission or other 
    consideration based on the sale of service by the 
    serviceman, directly or indirectly refers potential 
    customers to the serviceman by providing to the potential 
    customers a promotional code or other mechanism that 
    allows the serviceman to track purchases referred by such 
    persons. Examples of mechanisms that allow the serviceman 
    to track purchases referred by such persons include but 
    are not limited to the use of a link on the person's 
    Internet website, promotional codes distributed through 
    the person's hand-delivered or mailed material, and 
    promotional codes distributed by the person through radio 
    or other broadcast media. The provisions of this paragraph 
    (1.1) shall apply only if the cumulative gross receipts 
    from sales of service by the serviceman to customers who 
    are referred to the serviceman by all persons in this 
    State under such contracts exceed $10,000 during the 
    preceding 4 quarterly periods ending on the last day of 
    March, June, September, and December; a serviceman meeting 
    the requirements of this paragraph (1.1) shall be presumed 
    to be maintaining a place of business in this State but may 
    rebut this presumption by submitting proof that the 
    referrals or other activities pursued within this State by 
    such persons were not sufficient to meet the nexus 
    standards of the United States Constitution during the 
    preceding 4 quarterly periods; 
        (1.2) beginning July 1, 2011, having a contract with a 
    person located in this State under which:
            (A) the serviceman sells the same or substantially 
        similar line of services as the person located in this 
        State and does so using an identical or substantially 
        similar name, trade name, or trademark as the person 
        located in this State; and
            (B) the serviceman provides a commission or other 
        consideration to the person located in this State 
        based upon the sale of services by the serviceman.
    The provisions of this paragraph (1.2) shall apply only if 
    the cumulative gross receipts from sales of service by the 
    serviceman to customers in this State under all such 
    contracts exceed $10,000 during the preceding 4 quarterly 
    periods ending on the last day of March, June, September, 
    and December; 
        (2) soliciting orders for tangible personal property 
    by means of a telecommunication or television shopping 
    system (which utilizes toll free numbers) which is 
    intended by the retailer to be broadcast by cable 
    television or other means of broadcasting, to consumers 
    located in this State;
        (3) pursuant to a contract with a broadcaster or 
    publisher located in this State, soliciting orders for 
    tangible personal property by means of advertising which 
    is disseminated primarily to consumers located in this 
    State and only secondarily to bordering jurisdictions;
        (4) soliciting orders for tangible personal property 
    by mail if the solicitations are substantial and recurring 
    and if the retailer benefits from any banking, financing, 
    debt collection, telecommunication, or marketing 
    activities occurring in this State or benefits from the 
    location in this State of authorized installation, 
    servicing, or repair facilities;
        (5) being owned or controlled by the same interests 
    which own or control any retailer engaging in business in 
    the same or similar line of business in this State;
        (6) having a franchisee or licensee operating under 
    its trade name if the franchisee or licensee is required 
    to collect the tax under this Section;
        (7) pursuant to a contract with a cable television 
    operator located in this State, soliciting orders for 
    tangible personal property by means of advertising which 
    is transmitted or distributed over a cable television 
    system in this State;
        (8) engaging in activities in Illinois, which 
    activities in the state in which the supply business 
    engaging in such activities is located would constitute 
    maintaining a place of business in that state; or
        (9) beginning October 1, 2018, making sales of service 
    to purchasers in Illinois from outside of Illinois if: 
            (A) the cumulative gross receipts from sales of 
        service to purchasers in Illinois are $100,000 or 
        more; or 
            (B) the serviceman enters into 200 or more 
        separate transactions for sales of service to 
        purchasers in Illinois. 
        The serviceman shall determine on a quarterly basis, 
    ending on the last day of March, June, September, and 
    December, whether he or she meets the criteria of either 
    subparagraph (A) or (B) of this paragraph (9) for the 
    preceding 12-month period. If the serviceman meets the 
    criteria of either subparagraph (A) or (B) for a 12-month 
    period, he or she is considered a serviceman maintaining a 
    place of business in this State and is required to collect 
    and remit the tax imposed under this Act and file returns 
    for one year. At the end of that one-year period, the 
    serviceman shall determine whether the serviceman met the 
    criteria of either subparagraph (A) or (B) during the 
    preceding 12-month period. If the serviceman met the 
    criteria in either subparagraph (A) or (B) for the 
    preceding 12-month period, he or she is considered a 
    serviceman maintaining a place of business in this State 
    and is required to collect and remit the tax imposed under 
    this Act and file returns for the subsequent year. If at 
    the end of a one-year period a serviceman that was 
    required to collect and remit the tax imposed under this 
    Act determines that he or she did not meet the criteria in 
    either subparagraph (A) or (B) during the preceding 
    12-month period, the serviceman subsequently shall 
    determine on a quarterly basis, ending on the last day of 
    March, June, September, and December, whether he or she 
    meets the criteria of either subparagraph (A) or (B) for 
    the preceding 12-month period.
        Beginning January 1, 2020, neither the gross receipts 
    from nor the number of separate transactions for sales of 
    service to purchasers in Illinois that a serviceman makes 
    through a marketplace facilitator and for which the 
    serviceman has received a certification from the 
    marketplace facilitator pursuant to Section 2d of this Act 
    shall be included for purposes of determining whether he 
    or she has met the thresholds of this paragraph (9).
        (10) Beginning January 1, 2020, a marketplace 
    facilitator, as defined in Section 2d of this Act. 
(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 
100-587, eff. 6-4-18; 100-863, eff. 8-14-18; 101-9, Article 
10, Section 10-15, eff. 6-5-19; 101-9, Article 25, Section 
25-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 
    (35 ILCS 110/3)  (from Ch. 120, par. 439.33)
    Sec. 3. Tax imposed. A tax is imposed upon the privilege of 
using in this State real or tangible personal property 
acquired, which, on and after January 1, 2025, includes 
tangible personal property acquired through a lease, as an 
incident to the purchase of a service from a serviceman, 
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 public 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 leases 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 
serviceman who is a 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. 
(Source: P.A. 98-583, eff. 1-1-14.)
 
    (35 ILCS 110/3-5)
    Sec. 3-5. Exemptions. Use of the following tangible 
personal property is exempt from the tax imposed by this Act:
    (1) Personal property purchased from a corporation, 
society, association, foundation, institution, or 
organization, other than a limited liability company, that is 
organized and operated as a not-for-profit service enterprise 
for the benefit of persons 65 years of age or older if the 
personal property was not purchased by the enterprise for the 
purpose of resale by the enterprise.
    (2) Personal property purchased by a non-profit Illinois 
county fair association for use in conducting, operating, or 
promoting the county fair.
    (3) Personal property purchased by a not-for-profit arts 
or cultural organization that establishes, by proof required 
by the Department by rule, that it has received an exemption 
under Section 501(c)(3) of the Internal Revenue Code and that 
is organized and operated primarily for the presentation or 
support of arts or cultural programming, activities, or 
services. These organizations include, but are not limited to, 
music and dramatic arts organizations such as symphony 
orchestras and theatrical groups, arts and cultural service 
organizations, local arts councils, visual arts organizations, 
and media arts organizations. On and after July 1, 2001 (the 
effective date of Public Act 92-35), however, an entity 
otherwise eligible for this exemption shall not make tax-free 
purchases unless it has an active identification number issued 
by the Department.
    (4) Legal tender, currency, medallions, or gold or silver 
coinage issued by the State of Illinois, the government of the 
United States of America, or the government of any foreign 
country, and bullion.
    (5) Until July 1, 2003 and beginning again on September 1, 
2004 through August 30, 2014, graphic arts machinery and 
equipment, including repair and replacement parts, both new 
and used, and including that manufactured on special order or 
purchased for lease, certified by the purchaser to be used 
primarily for graphic arts production. Equipment includes 
chemicals or chemicals acting as catalysts but only if the 
chemicals or chemicals acting as catalysts effect a direct and 
immediate change upon a graphic arts product. Beginning on 
July 1, 2017, graphic arts machinery and equipment is included 
in the manufacturing and assembling machinery and equipment 
exemption under Section 2 of this Act.
    (6) Personal property purchased from a teacher-sponsored 
student organization affiliated with an elementary or 
secondary school located in Illinois.
    (7) Farm machinery and equipment, both new and used, 
including that manufactured on special order, certified by the 
purchaser to be used primarily for production agriculture or 
State or federal agricultural programs, including individual 
replacement parts for the machinery and equipment, including 
machinery and equipment purchased for lease, and including 
implements of husbandry defined in Section 1-130 of the 
Illinois Vehicle Code, farm machinery and agricultural 
chemical and fertilizer spreaders, and nurse wagons required 
to be registered under Section 3-809 of the Illinois Vehicle 
Code, but excluding other motor vehicles required to be 
registered under the Illinois Vehicle Code. Horticultural 
polyhouses or hoop houses used for propagating, growing, or 
overwintering plants shall be considered farm machinery and 
equipment under this item (7). Agricultural chemical tender 
tanks and dry boxes shall include units sold separately from a 
motor vehicle required to be licensed and units sold mounted 
on a motor vehicle required to be licensed if the selling price 
of the tender is separately stated.
    Farm machinery and equipment shall include precision 
farming equipment that is installed or purchased to be 
installed on farm machinery and equipment, including, but not 
limited to, tractors, harvesters, sprayers, planters, seeders, 
or spreaders. Precision farming equipment includes, but is not 
limited to, soil testing sensors, computers, monitors, 
software, global positioning and mapping systems, and other 
such equipment.
    Farm machinery and equipment also includes computers, 
sensors, software, and related equipment used primarily in the 
computer-assisted operation of production agriculture 
facilities, equipment, and activities such as, but not limited 
to, the collection, monitoring, and correlation of animal and 
crop data for the purpose of formulating animal diets and 
agricultural chemicals. 
    Beginning on January 1, 2024, farm machinery and equipment 
also includes electrical power generation equipment used 
primarily for production agriculture. 
    This item (7) is exempt from the provisions of Section 
3-75.
    (8) Until June 30, 2013, fuel and petroleum products sold 
to or used by an air common carrier, certified by the carrier 
to be used for consumption, shipment, or storage in the 
conduct of its business as an air common carrier, for a flight 
destined for or returning from a location or locations outside 
the United States without regard to previous or subsequent 
domestic stopovers.
    Beginning July 1, 2013, fuel and petroleum products sold 
to or used by an air carrier, certified by the carrier to be 
used for consumption, shipment, or storage in the conduct of 
its business as an air common carrier, for a flight that (i) is 
engaged in foreign trade or is engaged in trade between the 
United States and any of its possessions and (ii) transports 
at least one individual or package for hire from the city of 
origination to the city of final destination on the same 
aircraft, without regard to a change in the flight number of 
that aircraft. 
    (9) Proceeds of mandatory service charges separately 
stated on customers' bills for the purchase and consumption of 
food and beverages acquired as an incident to the purchase of a 
service from a serviceman, to the extent that the proceeds of 
the service charge are in fact turned over as tips or as a 
substitute for tips to the employees who participate directly 
in preparing, serving, hosting or cleaning up the food or 
beverage function with respect to which the service charge is 
imposed.
    (10) Until July 1, 2003, oil field exploration, drilling, 
and production equipment, including (i) rigs and parts of 
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) 
pipe and tubular goods, including casing and drill strings, 
(iii) pumps and pump-jack units, (iv) storage tanks and flow 
lines, (v) any individual replacement part for oil field 
exploration, drilling, and production equipment, and (vi) 
machinery and equipment purchased for lease; but excluding 
motor vehicles required to be registered under the Illinois 
Vehicle Code.
    (11) Proceeds from the sale of photoprocessing machinery 
and equipment, including repair and replacement parts, both 
new and used, including that manufactured on special order, 
certified by the purchaser to be used primarily for 
photoprocessing, and including photoprocessing machinery and 
equipment purchased for lease.
    (12) Until July 1, 2028, coal and aggregate exploration, 
mining, off-highway hauling, processing, maintenance, and 
reclamation equipment, including replacement parts and 
equipment, and including equipment purchased for lease, but 
excluding motor vehicles required to be registered under the 
Illinois Vehicle Code. The changes made to this Section by 
Public Act 97-767 apply on and after July 1, 2003, but no claim 
for credit or refund is allowed on or after August 16, 2013 
(the effective date of Public Act 98-456) for such taxes paid 
during the period beginning July 1, 2003 and ending on August 
16, 2013 (the effective date of Public Act 98-456).
    (13) Semen used for artificial insemination of livestock 
for direct agricultural production.
    (14) Horses, or interests in horses, registered with and 
meeting the requirements of any of the Arabian Horse Club 
Registry of America, Appaloosa Horse Club, American Quarter 
Horse Association, United States Trotting Association, or 
Jockey Club, as appropriate, used for purposes of breeding or 
racing for prizes. This item (14) is exempt from the 
provisions of Section 3-75, and the exemption provided for 
under this item (14) applies for all periods beginning May 30, 
1995, but no claim for credit or refund is allowed on or after 
January 1, 2008 (the effective date of Public Act 95-88) for 
such taxes paid during the period beginning May 30, 2000 and 
ending on January 1, 2008 (the effective date of Public Act 
95-88).
    (15) Computers and communications equipment utilized for 
any hospital purpose and equipment used in the diagnosis, 
analysis, or treatment of hospital patients purchased by a 
lessor who leases the equipment, under a lease of one year or 
longer executed or in effect at the time the lessor would 
otherwise be subject to the tax imposed by this Act, to a 
hospital that has been issued an active tax exemption 
identification number by the Department under Section 1g of 
the Retailers' Occupation Tax Act. If the equipment is leased 
in a manner that does not qualify for this exemption or is used 
in any other non-exempt manner, the lessor shall be liable for 
the tax imposed under this Act or the Use Tax Act, as the case 
may be, based on the fair market value of the property at the 
time the non-qualifying use occurs. No lessor shall collect or 
attempt to collect an amount (however designated) that 
purports to reimburse that lessor for the tax imposed by this 
Act or the Use Tax Act, as the case may be, if the tax has not 
been paid by the lessor. If a lessor improperly collects any 
such amount from the lessee, the lessee shall have a legal 
right to claim a refund of that amount from the lessor. If, 
however, that amount is not refunded to the lessee for any 
reason, the lessor is liable to pay that amount to the 
Department.
    (16) Personal property purchased by a lessor who leases 
the property, under a lease of one year or longer executed or 
in effect at the time the lessor would otherwise be subject to 
the tax imposed by this Act, to a governmental body that has 
been issued an active tax exemption identification number by 
the Department under Section 1g of the Retailers' Occupation 
Tax Act. If the property is leased in a manner that does not 
qualify for this exemption or is used in any other non-exempt 
manner, the lessor shall be liable for the tax imposed under 
this Act or the Use Tax Act, as the case may be, based on the 
fair market value of the property at the time the 
non-qualifying use occurs. No lessor shall collect or attempt 
to collect an amount (however designated) that purports to 
reimburse that lessor for the tax imposed by this Act or the 
Use Tax Act, as the case may be, if the tax has not been paid 
by the lessor. If a lessor improperly collects any such amount 
from the lessee, the lessee shall have a legal right to claim a 
refund of that amount from the lessor. If, however, that 
amount is not refunded to the lessee for any reason, the lessor 
is liable to pay that amount to the Department.
    (17) Beginning with taxable years ending on or after 
December 31, 1995 and ending with taxable years ending on or 
before December 31, 2004, personal property that is donated 
for disaster relief to be used in a State or federally declared 
disaster area in Illinois or bordering Illinois by a 
manufacturer or retailer that is registered in this State to a 
corporation, society, association, foundation, or institution 
that has been issued a sales tax exemption identification 
number by the Department that assists victims of the disaster 
who reside within the declared disaster area.
    (18) Beginning with taxable years ending on or after 
December 31, 1995 and ending with taxable years ending on or 
before December 31, 2004, personal property that is used in 
the performance of infrastructure repairs in this State, 
including, but not limited to, municipal roads and streets, 
access roads, bridges, sidewalks, waste disposal systems, 
water and sewer line extensions, water distribution and 
purification facilities, storm water drainage and retention 
facilities, and sewage treatment facilities, resulting from a 
State or federally declared disaster in Illinois or bordering 
Illinois when such repairs are initiated on facilities located 
in the declared disaster area within 6 months after the 
disaster.
    (19) Beginning July 1, 1999, game or game birds purchased 
at a "game breeding and hunting preserve area" as that term is 
used in the Wildlife Code. This paragraph is exempt from the 
provisions of Section 3-75.
    (20) A motor vehicle, as that term is defined in Section 
1-146 of the Illinois Vehicle Code, that is donated to a 
corporation, limited liability company, society, association, 
foundation, or institution that is determined by the 
Department to be organized and operated exclusively for 
educational purposes. For purposes of this exemption, "a 
corporation, limited liability company, society, association, 
foundation, or institution organized and operated exclusively 
for educational purposes" means all tax-supported public 
schools, private schools that offer systematic instruction in 
useful branches of learning by methods common to public 
schools and that compare favorably in their scope and 
intensity with the course of study presented in tax-supported 
schools, and vocational or technical schools or institutes 
organized and operated exclusively to provide a course of 
study of not less than 6 weeks duration and designed to prepare 
individuals to follow a trade or to pursue a manual, 
technical, mechanical, industrial, business, or commercial 
occupation.
    (21) Beginning January 1, 2000, personal property, 
including food, purchased through fundraising events for the 
benefit of a public or private elementary or secondary school, 
a group of those schools, or one or more school districts if 
the events are sponsored by an entity recognized by the school 
district that consists primarily of volunteers and includes 
parents and teachers of the school children. This paragraph 
does not apply to fundraising events (i) for the benefit of 
private home instruction or (ii) for which the fundraising 
entity purchases the personal property sold at the events from 
another individual or entity that sold the property for the 
purpose of resale by the fundraising entity and that profits 
from the sale to the fundraising entity. This paragraph is 
exempt from the provisions of Section 3-75.
    (22) Beginning January 1, 2000 and through December 31, 
2001, new or used automatic vending machines that prepare and 
serve hot food and beverages, including coffee, soup, and 
other items, and replacement parts for these machines. 
Beginning January 1, 2002 and through June 30, 2003, machines 
and parts for machines used in commercial, coin-operated 
amusement and vending business if a use or occupation tax is 
paid on the gross receipts derived from the use of the 
commercial, coin-operated amusement and vending machines. This 
paragraph is exempt from the provisions of Section 3-75.
    (23) Beginning August 23, 2001 and through June 30, 2016, 
food for human consumption that is to be consumed off the 
premises where it is sold (other than alcoholic beverages, 
soft drinks, and food that has been prepared for immediate 
consumption) and prescription and nonprescription medicines, 
drugs, medical appliances, and insulin, urine testing 
materials, syringes, and needles used by diabetics, for human 
use, when purchased for use by a person receiving medical 
assistance under Article V of the Illinois Public Aid Code who 
resides in a licensed long-term care facility, as defined in 
the Nursing Home Care Act, or in a licensed facility as defined 
in the ID/DD Community Care Act, the MC/DD Act, or the 
Specialized Mental Health Rehabilitation Act of 2013.
    (24) Beginning on August 2, 2001 (the effective date of 
Public Act 92-227), computers and communications equipment 
utilized for any hospital purpose and equipment used in the 
diagnosis, analysis, or treatment of hospital patients 
purchased by a lessor who leases the equipment, under a lease 
of one year or longer executed or in effect at the time the 
lessor would otherwise be subject to the tax imposed by this 
Act, to a hospital that has been issued an active tax exemption 
identification number by the Department under Section 1g of 
the Retailers' Occupation Tax Act. If the equipment is leased 
in a manner that does not qualify for this exemption or is used 
in any other nonexempt manner, the lessor shall be liable for 
the tax imposed under this Act or the Use Tax Act, as the case 
may be, based on the fair market value of the property at the 
time the nonqualifying use occurs. No lessor shall collect or 
attempt to collect an amount (however designated) that 
purports to reimburse that lessor for the tax imposed by this 
Act or the Use Tax Act, as the case may be, if the tax has not 
been paid by the lessor. If a lessor improperly collects any 
such amount from the lessee, the lessee shall have a legal 
right to claim a refund of that amount from the lessor. If, 
however, that amount is not refunded to the lessee for any 
reason, the lessor is liable to pay that amount to the 
Department. This paragraph is exempt from the provisions of 
Section 3-75.
    (25) Beginning on August 2, 2001 (the effective date of 
Public Act 92-227), personal property purchased by a lessor 
who leases the property, under a lease of one year or longer 
executed or in effect at the time the lessor would otherwise be 
subject to the tax imposed by this Act, to a governmental body 
that has been issued an active tax exemption identification 
number by the Department under Section 1g of the Retailers' 
Occupation Tax Act. If the property is leased in a manner that 
does not qualify for this exemption or is used in any other 
nonexempt manner, the lessor shall be liable for the tax 
imposed under this Act or the Use Tax Act, as the case may be, 
based on the fair market value of the property at the time the 
nonqualifying use occurs. No lessor shall collect or attempt 
to collect an amount (however designated) that purports to 
reimburse that lessor for the tax imposed by this Act or the 
Use Tax Act, as the case may be, if the tax has not been paid 
by the lessor. If a lessor improperly collects any such amount 
from the lessee, the lessee shall have a legal right to claim a 
refund of that amount from the lessor. If, however, that 
amount is not refunded to the lessee for any reason, the lessor 
is liable to pay that amount to the Department. This paragraph 
is exempt from the provisions of Section 3-75.
    (26) Beginning January 1, 2008, tangible personal property 
used in the construction or maintenance of a community water 
supply, as defined under Section 3.145 of the Environmental 
Protection Act, that is operated by a not-for-profit 
corporation that holds a valid water supply permit issued 
under Title IV of the Environmental Protection Act. This 
paragraph is exempt from the provisions of Section 3-75. 
    (27) Beginning January 1, 2010 and continuing through 
December 31, 2029, materials, parts, equipment, components, 
and furnishings incorporated into or upon an aircraft as part 
of the modification, refurbishment, completion, replacement, 
repair, or maintenance of the aircraft. This exemption 
includes consumable supplies used in the modification, 
refurbishment, completion, replacement, repair, and 
maintenance of aircraft. However, until January 1, 2024, this 
exemption excludes any materials, parts, equipment, 
components, and consumable supplies used in the modification, 
replacement, repair, and maintenance of aircraft engines or 
power plants, whether such engines or power plants are 
installed or uninstalled upon any such aircraft. "Consumable 
supplies" include, but are not limited to, adhesive, tape, 
sandpaper, general purpose lubricants, cleaning solution, 
latex gloves, and protective films. 
    Beginning January 1, 2010 and continuing through December 
31, 2023, this exemption applies only to the use of qualifying 
tangible personal property transferred incident to the 
modification, refurbishment, completion, replacement, repair, 
or maintenance of aircraft by persons who (i) hold an Air 
Agency Certificate and are empowered to operate an approved 
repair station by the Federal Aviation Administration, (ii) 
have a Class IV Rating, and (iii) conduct operations in 
accordance with Part 145 of the Federal Aviation Regulations. 
From January 1, 2024 through December 31, 2029, this exemption 
applies only to the use of qualifying tangible personal 
property by: (A) persons who modify, refurbish, complete, 
repair, replace, or maintain aircraft and who (i) hold an Air 
Agency Certificate and are empowered to operate an approved 
repair station by the Federal Aviation Administration, (ii) 
have a Class IV Rating, and (iii) conduct operations in 
accordance with Part 145 of the Federal Aviation Regulations; 
and (B) persons who engage in the modification, replacement, 
repair, and maintenance of aircraft engines or power plants 
without regard to whether or not those persons meet the 
qualifications of item (A).
    The exemption does not include aircraft operated by a 
commercial air carrier providing scheduled passenger air 
service pursuant to authority issued under Part 121 or Part 
129 of the Federal Aviation Regulations. The changes made to 
this paragraph (27) by Public Act 98-534 are declarative of 
existing law. It is the intent of the General Assembly that the 
exemption under this paragraph (27) applies continuously from 
January 1, 2010 through December 31, 2024; however, no claim 
for credit or refund is allowed for taxes paid as a result of 
the disallowance of this exemption on or after January 1, 2015 
and prior to February 5, 2020 (the effective date of Public Act 
101-629).
    (28) Tangible personal property purchased by a 
public-facilities corporation, as described in Section 
11-65-10 of the Illinois Municipal Code, for purposes of 
constructing or furnishing a municipal convention hall, but 
only if the legal title to the municipal convention hall is 
transferred to the municipality without any further 
consideration by or on behalf of the municipality at the time 
of the completion of the municipal convention hall or upon the 
retirement or redemption of any bonds or other debt 
instruments issued by the public-facilities corporation in 
connection with the development of the municipal convention 
hall. This exemption includes existing public-facilities 
corporations as provided in Section 11-65-25 of the Illinois 
Municipal Code. This paragraph is exempt from the provisions 
of Section 3-75. 
    (29) Beginning January 1, 2017 and through December 31, 
2026, menstrual pads, tampons, and menstrual cups. 
    (30) Tangible personal property transferred to a purchaser 
who is exempt from the tax imposed by this Act by operation of 
federal law. This paragraph is exempt from the provisions of 
Section 3-75. 
    (31) Qualified tangible personal property used in the 
construction or operation of a data center that has been 
granted a certificate of exemption by the Department of 
Commerce and Economic Opportunity, whether that tangible 
personal property is purchased by the owner, operator, or 
tenant of the data center or by a contractor or subcontractor 
of the owner, operator, or tenant. Data centers that would 
have qualified for a certificate of exemption prior to January 
1, 2020 had Public Act 101-31 been in effect, may apply for and 
obtain an exemption for subsequent purchases of computer 
equipment or enabling software purchased or leased to upgrade, 
supplement, or replace computer equipment or enabling software 
purchased or leased in the original investment that would have 
qualified. 
    The Department of Commerce and Economic Opportunity shall 
grant a certificate of exemption under this item (31) to 
qualified data centers as defined by Section 605-1025 of the 
Department of Commerce and Economic Opportunity Law of the 
Civil Administrative Code of Illinois. 
    For the purposes of this item (31): 
        "Data center" means a building or a series of 
    buildings rehabilitated or constructed to house working 
    servers in one physical location or multiple sites within 
    the State of Illinois. 
        "Qualified tangible personal property" means: 
    electrical systems and equipment; climate control and 
    chilling equipment and systems; mechanical systems and 
    equipment; monitoring and secure systems; emergency 
    generators; hardware; computers; servers; data storage 
    devices; network connectivity equipment; racks; cabinets; 
    telecommunications cabling infrastructure; raised floor 
    systems; peripheral components or systems; software; 
    mechanical, electrical, or plumbing systems; battery 
    systems; cooling systems and towers; temperature control 
    systems; other cabling; and other data center 
    infrastructure equipment and systems necessary to operate 
    qualified tangible personal property, including fixtures; 
    and component parts of any of the foregoing, including 
    installation, maintenance, repair, refurbishment, and 
    replacement of qualified tangible personal property to 
    generate, transform, transmit, distribute, or manage 
    electricity necessary to operate qualified tangible 
    personal property; and all other tangible personal 
    property that is essential to the operations of a computer 
    data center. The term "qualified tangible personal 
    property" also includes building materials physically 
    incorporated into in to the qualifying data center. To 
    document the exemption allowed under this Section, the 
    retailer must obtain from the purchaser a copy of the 
    certificate of eligibility issued by the Department of 
    Commerce and Economic Opportunity. 
    This item (31) is exempt from the provisions of Section 
3-75. 
    (32) Beginning July 1, 2022, breast pumps, breast pump 
collection and storage supplies, and breast pump kits. This 
item (32) is exempt from the provisions of Section 3-75. As 
used in this item (32): 
        "Breast pump" means an electrically controlled or 
    manually controlled pump device designed or marketed to be 
    used to express milk from a human breast during lactation, 
    including the pump device and any battery, AC adapter, or 
    other power supply unit that is used to power the pump 
    device and is packaged and sold with the pump device at the 
    time of sale. 
        "Breast pump collection and storage supplies" means 
    items of tangible personal property designed or marketed 
    to be used in conjunction with a breast pump to collect 
    milk expressed from a human breast and to store collected 
    milk until it is ready for consumption. 
        "Breast pump collection and storage supplies" 
    includes, but is not limited to: breast shields and breast 
    shield connectors; breast pump tubes and tubing adapters; 
    breast pump valves and membranes; backflow protectors and 
    backflow protector adaptors; bottles and bottle caps 
    specific to the operation of the breast pump; and breast 
    milk storage bags. 
        "Breast pump collection and storage supplies" does not 
    include: (1) bottles and bottle caps not specific to the 
    operation of the breast pump; (2) breast pump travel bags 
    and other similar carrying accessories, including ice 
    packs, labels, and other similar products; (3) breast pump 
    cleaning supplies; (4) nursing bras, bra pads, breast 
    shells, and other similar products; and (5) creams, 
    ointments, and other similar products that relieve 
    breastfeeding-related symptoms or conditions of the 
    breasts or nipples, unless sold as part of a breast pump 
    kit that is pre-packaged by the breast pump manufacturer 
    or distributor. 
        "Breast pump kit" means a kit that: (1) contains no 
    more than a breast pump, breast pump collection and 
    storage supplies, a rechargeable battery for operating the 
    breast pump, a breastmilk cooler, bottle stands, ice 
    packs, and a breast pump carrying case; and (2) is 
    pre-packaged as a breast pump kit by the breast pump 
    manufacturer or distributor. 
    (33) Tangible personal property sold by or on behalf of 
the State Treasurer pursuant to the Revised Uniform Unclaimed 
Property Act. This item (33) is exempt from the provisions of 
Section 3-75. 
    (34) Beginning on January 1, 2024, tangible personal 
property purchased by an active duty member of the armed 
forces of the United States who presents valid military 
identification and purchases the property using a form of 
payment where the federal government is the payor. The member 
of the armed forces must complete, at the point of sale, a form 
prescribed by the Department of Revenue documenting that the 
transaction is eligible for the exemption under this 
paragraph. Retailers must keep the form as documentation of 
the exemption in their records for a period of not less than 6 
years. "Armed forces of the United States" means the United 
States Army, Navy, Air Force, Marine Corps, or Coast Guard. 
This paragraph is exempt from the provisions of Section 3-75. 
    (35) Use by a lessee of the following leased tangible 
personal property:
        (1) software transferred subject to a license that 
    meets the following requirements:
            (A) it is evidenced by a written agreement signed 
        by the licensor and the customer;
                (i) an electronic agreement in which the 
            customer accepts the license by means of an 
            electronic signature that is verifiable and can be 
            authenticated and is attached to or made part of 
            the license will comply with this requirement;
                (ii) a license agreement in which the customer 
            electronically accepts the terms by clicking "I 
            agree" does not comply with this requirement;
            (B) it restricts the customer's duplication and 
        use of the software;
            (C) it prohibits the customer from licensing, 
        sublicensing, or transferring the software to a third 
        party (except to a related party) without the 
        permission and continued control of the licensor;
            (D) the licensor has a policy of providing another 
        copy at minimal or no charge if the customer loses or 
        damages the software, or of permitting the licensee to 
        make and keep an archival copy, and such policy is 
        either stated in the license agreement, supported by 
        the licensor's books and records, or supported by a 
        notarized statement made under penalties of perjury by 
        the licensor; and
            (E) the customer must destroy or return all copies 
        of the software to the licensor at the end of the 
        license period; this provision is deemed to be met, in 
        the case of a perpetual license, without being set 
        forth in the license agreement; and
        (2) property that is subject to a tax on lease 
    receipts imposed by a home rule unit of local government 
    if the ordinance imposing that tax was adopted prior to 
    January 1, 2023. 
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, 
Section 70-10, eff. 4-19-22; 102-700, Article 75, Section 
75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, 
Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10, 
eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; 
revised 12-12-23.)
 
    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
    Sec. 3-10. Rate of tax. Unless otherwise provided in this 
Section, the tax imposed by this Act is at the rate of 6.25% of 
the selling price of tangible personal property transferred, 
including, on and after January 1, 2025, transferred by lease, 
as an incident to the sale of service, but, for the purpose of 
computing this tax, in no event shall the selling price be less 
than the cost price of the property to the serviceman.
    Beginning on July 1, 2000 and through December 31, 2000, 
with respect to motor fuel, as defined in Section 1.1 of the 
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of 
the Use Tax Act, the tax is imposed at the rate of 1.25%.
    With respect to gasohol, as defined in the Use Tax Act, the 
tax imposed by this Act applies to (i) 70% of the selling price 
of property transferred as an incident to the sale of service 
on or after January 1, 1990, and before July 1, 2003, (ii) 80% 
of the selling price of property transferred as an incident to 
the sale of service on or after July 1, 2003 and on or before 
July 1, 2017, (iii) 100% of the selling price of property 
transferred as an incident to the sale of service after July 1, 
2017 and before January 1, 2024, (iv) 90% of the selling price 
of property transferred as an incident to the sale of service 
on or after January 1, 2024 and on or before December 31, 2028, 
and (v) 100% of the selling price of property transferred as an 
incident to the sale of service after December 31, 2028. If, at 
any time, however, the tax under this Act on sales of gasohol, 
as defined in the Use Tax Act, is imposed at the rate of 1.25%, 
then the tax imposed by this Act applies to 100% of the 
proceeds of sales of gasohol made during that time.
    With respect to mid-range ethanol blends, as defined in 
Section 3-44.3 of the Use Tax Act, the tax imposed by this Act 
applies to (i) 80% of the selling price of property 
transferred as an incident to the sale of service on or after 
January 1, 2024 and on or before December 31, 2028 and (ii) 
100% of the selling price of property transferred as an 
incident to the sale of service after December 31, 2028. If, at 
any time, however, the tax under this Act on sales of mid-range 
ethanol blends is imposed at the rate of 1.25%, then the tax 
imposed by this Act applies to 100% of the selling price of 
mid-range ethanol blends transferred as an incident to the 
sale of service during that time.
    With respect to majority blended ethanol fuel, as defined 
in the Use Tax Act, the tax imposed by this Act does not apply 
to the selling price of property transferred as an incident to 
the sale of service on or after July 1, 2003 and on or before 
December 31, 2028 but applies to 100% of the selling price 
thereafter.
    With respect to biodiesel blends, as defined in the Use 
Tax Act, with no less than 1% and no more than 10% biodiesel, 
the tax imposed by this Act applies to (i) 80% of the selling 
price of property transferred as an incident to the sale of 
service on or after July 1, 2003 and on or before December 31, 
2018 and (ii) 100% of the proceeds of the selling price after 
December 31, 2018 and before January 1, 2024. On and after 
January 1, 2024 and on or before December 31, 2030, the 
taxation of biodiesel, renewable diesel, and biodiesel blends 
shall be as provided in Section 3-5.1 of the Use Tax Act. If, 
at any time, however, the tax under this Act on sales of 
biodiesel blends, as defined in the Use Tax Act, with no less 
than 1% and no more than 10% biodiesel is imposed at the rate 
of 1.25%, then the tax imposed by this Act applies to 100% of 
the proceeds of sales of biodiesel blends with no less than 1% 
and no more than 10% biodiesel made during that time.
    With respect to biodiesel, as defined in the Use Tax Act, 
and biodiesel blends, as defined in the Use Tax Act, with more 
than 10% but no more than 99% biodiesel, the tax imposed by 
this Act does not apply to the proceeds of the selling price of 
property transferred as an incident to the sale of service on 
or after July 1, 2003 and on or before December 31, 2023. On 
and after January 1, 2024 and on or before December 31, 2030, 
the taxation of biodiesel, renewable diesel, and biodiesel 
blends shall be as provided in Section 3-5.1 of the Use Tax 
Act.
    At the election of any registered serviceman made for each 
fiscal year, sales of service in which the aggregate annual 
cost price of tangible personal property transferred as an 
incident to the sales of service is less than 35%, or 75% in 
the case of servicemen transferring prescription drugs or 
servicemen engaged in graphic arts production, of the 
aggregate annual total gross receipts from all sales of 
service, the tax imposed by this Act shall be based on the 
serviceman's cost price of the tangible personal property 
transferred as an incident to the sale of those services.
    Until July 1, 2022 and beginning again on July 1, 2023, the 
tax shall be imposed at the rate of 1% on food prepared for 
immediate consumption and transferred incident to a sale of 
service subject to this Act or the Service Occupation Tax Act 
by an entity licensed under the Hospital Licensing Act, the 
Nursing Home Care Act, the Assisted Living and Shared Housing 
Act, the ID/DD Community Care Act, the MC/DD Act, the 
Specialized Mental Health Rehabilitation Act of 2013, or the 
Child Care Act of 1969, or an entity that holds a permit issued 
pursuant to the Life Care Facilities Act. Until July 1, 2022 
and beginning again on July 1, 2023, the tax shall also be 
imposed at the rate of 1% on food for human consumption that is 
to be consumed off the premises where it is sold (other than 
alcoholic beverages, food consisting of or infused with adult 
use cannabis, soft drinks, and food that has been prepared for 
immediate consumption and is not otherwise included in this 
paragraph). 
    Beginning on July 1, 2022 and until July 1, 2023, the tax 
shall be imposed at the rate of 0% on food prepared for 
immediate consumption and transferred incident to a sale of 
service subject to this Act or the Service Occupation Tax Act 
by an entity licensed under the Hospital Licensing Act, the 
Nursing Home Care Act, the Assisted Living and Shared Housing 
Act, the ID/DD Community Care Act, the MC/DD Act, the 
Specialized Mental Health Rehabilitation Act of 2013, or the 
Child Care Act of 1969, or an entity that holds a permit issued 
pursuant to the Life Care Facilities Act. Beginning on July 1, 
2022 and until July 1, 2023, the tax shall also be imposed at 
the rate of 0% on food for human consumption that is to be 
consumed off the premises where it is sold (other than 
alcoholic beverages, food consisting of or infused with adult 
use cannabis, soft drinks, and food that has been prepared for 
immediate consumption and is not otherwise included in this 
paragraph). 
    The tax shall also be imposed at the rate of 1% on 
prescription and nonprescription medicines, drugs, medical 
appliances, products classified as Class III medical devices 
by the United States Food and Drug Administration that are 
used for cancer treatment pursuant to a prescription, as well 
as any accessories and components related to those devices, 
modifications to a motor vehicle for the purpose of rendering 
it usable by a person with a disability, and insulin, blood 
sugar testing materials, syringes, and needles used by human 
diabetics. For the purposes of this Section, until September 
1, 2009: the term "soft drinks" means any complete, finished, 
ready-to-use, non-alcoholic drink, whether carbonated or not, 
including, but not limited to, soda water, cola, fruit juice, 
vegetable juice, carbonated water, and all other preparations 
commonly known as soft drinks of whatever kind or description 
that are contained in any closed or sealed bottle, can, 
carton, or container, regardless of size; but "soft drinks" 
does not include coffee, tea, non-carbonated water, infant 
formula, milk or milk products as defined in the Grade A 
Pasteurized Milk and Milk Products Act, or drinks containing 
50% or more natural fruit or vegetable juice.
    Notwithstanding any other provisions of this Act, 
beginning September 1, 2009, "soft drinks" means non-alcoholic 
beverages that contain natural or artificial sweeteners. "Soft 
drinks" does not include beverages that contain milk or milk 
products, soy, rice or similar milk substitutes, or greater 
than 50% of vegetable or fruit juice by volume.
    Until August 1, 2009, and notwithstanding any other 
provisions of this Act, "food for human consumption that is to 
be consumed off the premises where it is sold" includes all 
food sold through a vending machine, except soft drinks and 
food products that are dispensed hot from a vending machine, 
regardless of the location of the vending machine. Beginning 
August 1, 2009, and notwithstanding any other provisions of 
this Act, "food for human consumption that is to be consumed 
off the premises where it is sold" includes all food sold 
through a vending machine, except soft drinks, candy, and food 
products that are dispensed hot from a vending machine, 
regardless of the location of the vending machine. 
    Notwithstanding any other provisions of this Act, 
beginning September 1, 2009, "food for human consumption that 
is to be consumed off the premises where it is sold" does not 
include candy. For purposes of this Section, "candy" means a 
preparation of sugar, honey, or other natural or artificial 
sweeteners in combination with chocolate, fruits, nuts or 
other ingredients or flavorings in the form of bars, drops, or 
pieces. "Candy" does not include any preparation that contains 
flour or requires refrigeration. 
    Notwithstanding any other provisions of this Act, 
beginning September 1, 2009, "nonprescription medicines and 
drugs" does not include grooming and hygiene products. For 
purposes of this Section, "grooming and hygiene products" 
includes, but is not limited to, soaps and cleaning solutions, 
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan 
lotions and screens, unless those products are available by 
prescription only, regardless of whether the products meet the 
definition of "over-the-counter-drugs". For the purposes of 
this paragraph, "over-the-counter-drug" means a drug for human 
use that contains a label that identifies the product as a drug 
as required by 21 CFR 201.66. The "over-the-counter-drug" 
label includes: 
        (A) a "Drug Facts" panel; or
        (B) a statement of the "active ingredient(s)" with a 
    list of those ingredients contained in the compound, 
    substance or preparation.
    Beginning on January 1, 2014 (the effective date of Public 
Act 98-122), "prescription and nonprescription medicines and 
drugs" includes medical cannabis purchased from a registered 
dispensing organization under the Compassionate Use of Medical 
Cannabis Program Act. 
    As used in this Section, "adult use cannabis" means 
cannabis subject to tax under the Cannabis Cultivation 
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law 
and does not include cannabis subject to tax under the 
Compassionate Use of Medical Cannabis Program Act. 
    If the property that is acquired from a serviceman is 
acquired outside Illinois and used outside Illinois before 
being brought to Illinois for use here and is taxable under 
this Act, the "selling price" on which the tax is computed 
shall be reduced by an amount that represents a reasonable 
allowance for depreciation for the period of prior 
out-of-state use. No depreciation is allowed in cases where 
the tax under this Act is imposed on lease receipts. 
(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 
102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700, 
Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23; 
103-154, eff. 6-30-23.)
 
    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
    Sec. 9. Each serviceman required or authorized to collect 
the tax herein imposed shall pay to the Department the amount 
of such tax (except as otherwise provided) at the time when he 
is required to file his return for the period during which such 
tax was collected, less a discount of 2.1% prior to January 1, 
1990 and 1.75% on and after January 1, 1990, or $5 per calendar 
year, whichever is greater, which is allowed to reimburse the 
serviceman for expenses incurred in collecting the tax, 
keeping records, preparing and filing returns, remitting the 
tax and supplying data to the Department on request. When 
determining the discount allowed under this Section, 
servicemen shall include the amount of tax that would have 
been due at the 1% rate but for the 0% rate imposed under this 
amendatory Act of the 102nd General Assembly. The discount 
under this Section is not allowed for the 1.25% portion of 
taxes paid on aviation fuel that is subject to the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The 
discount allowed under this Section is allowed only for 
returns that are filed in the manner required by this Act. The 
Department may disallow the discount for servicemen whose 
certificate of registration is revoked at the time the return 
is filed, but only if the Department's decision to revoke the 
certificate of registration has become final. A serviceman 
need not remit that part of any tax collected by him to the 
extent that he is required to pay and does pay the tax imposed 
by the Service Occupation Tax Act with respect to his sale of 
service involving the incidental transfer by him of the same 
property.
    Except as provided hereinafter in this Section, on or 
before the twentieth day of each calendar month, such 
serviceman shall file a return for the preceding calendar 
month in accordance with reasonable Rules and Regulations to 
be promulgated by the Department. Such return shall be filed 
on a form prescribed by the Department and shall contain such 
information as the Department may reasonably require. The 
return shall include the gross receipts which were received 
during the preceding calendar month or quarter on the 
following items upon which tax would have been due but for the 
0% rate imposed under this amendatory Act of the 102nd General 
Assembly: (i) food for human consumption that is to be 
consumed off the premises where it is sold (other than 
alcoholic beverages, food consisting of or infused with adult 
use cannabis, soft drinks, and food that has been prepared for 
immediate consumption); and (ii) food prepared for immediate 
consumption and transferred incident to a sale of service 
subject to this Act or the Service Occupation Tax Act by an 
entity licensed under the Hospital Licensing Act, the Nursing 
Home Care Act, the Assisted Living and Shared Housing Act, the 
ID/DD Community Care Act, the MC/DD Act, the Specialized 
Mental Health Rehabilitation Act of 2013, or the Child Care 
Act of 1969, or an entity that holds a permit issued pursuant 
to the Life Care Facilities Act. The return shall also include 
the amount of tax that would have been due on the items listed 
in the previous sentence but for the 0% rate imposed under this 
amendatory Act of the 102nd General Assembly. 
    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. 
    On and after January 1, 2018, with respect to servicemen 
whose annual gross receipts average $20,000 or more, all 
returns required to be filed pursuant to this Act shall be 
filed electronically. Servicemen who demonstrate that they do 
not have access to the Internet or demonstrate hardship in 
filing electronically may petition the Department to waive the 
electronic filing requirement. 
    The Department may require returns to be filed on a 
quarterly basis. If so required, a return for each calendar 
quarter shall be filed on or before the twentieth day of the 
calendar month following the end of such calendar quarter. The 
taxpayer shall also file a return with the Department for each 
of the first two months of each calendar quarter, on or before 
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from 
    which he engages in business as a serviceman in this 
    State;
        3. The total amount of taxable receipts received by 
    him during the preceding calendar month, including 
    receipts from charge and time sales, but less all 
    deductions allowed by law;
        4. The amount of credit provided in Section 2d of this 
    Act;
        5. The amount of tax due;
        5-5. The signature of the taxpayer; and
        6. Such other reasonable information as the Department 
    may require.
    Each serviceman required or authorized to collect the tax 
imposed by this Act on aviation fuel transferred as an 
incident of a sale of service in this State during the 
preceding calendar month shall, instead of reporting and 
paying tax on aviation fuel as otherwise required by this 
Section, report and pay such tax on a separate aviation fuel 
tax return. The requirements related to the return shall be as 
otherwise provided in this Section. Notwithstanding any other 
provisions of this Act to the contrary, servicemen collecting 
tax on aviation fuel shall file all aviation fuel tax returns 
and shall make all aviation fuel tax payments by electronic 
means in the manner and form required by the Department. For 
purposes of this Section, "aviation fuel" means jet fuel and 
aviation gasoline. 
    If a taxpayer fails to sign a return within 30 days after 
the proper notice and demand for signature by the Department, 
the return shall be considered valid and any amount shown to be 
due on the return shall be deemed assessed.
    Notwithstanding any other provision of this Act to the 
contrary, servicemen subject to tax on cannabis shall file all 
cannabis tax returns and shall make all cannabis tax payments 
by electronic means in the manner and form required by the 
Department.
    Beginning October 1, 1993, a taxpayer who has an average 
monthly tax liability of $150,000 or more shall make all 
payments required by rules of the Department by electronic 
funds transfer. Beginning October 1, 1994, a taxpayer who has 
an average monthly tax liability of $100,000 or more shall 
make all payments required by rules of the Department by 
electronic funds transfer. Beginning October 1, 1995, a 
taxpayer who has an average monthly tax liability of $50,000 
or more shall make all payments required by rules of the 
Department by electronic funds transfer. Beginning October 1, 
2000, a taxpayer who has an annual tax liability of $200,000 or 
more shall make all payments required by rules of the 
Department by electronic funds transfer. The term "annual tax 
liability" shall be the sum of the taxpayer's liabilities 
under this Act, and under all other State and local occupation 
and use tax laws administered by the Department, for the 
immediately preceding calendar year. The term "average monthly 
tax liability" means the sum of the taxpayer's liabilities 
under this Act, and under all other State and local occupation 
and use tax laws administered by the Department, for the 
immediately preceding calendar year divided by 12. Beginning 
on October 1, 2002, a taxpayer who has a tax liability in the 
amount set forth in subsection (b) of Section 2505-210 of the 
Department of Revenue Law shall make all payments required by 
rules of the Department by electronic funds transfer.
    Before August 1 of each year beginning in 1993, the 
Department shall notify all taxpayers required to make 
payments by electronic funds transfer. All taxpayers required 
to make payments by electronic funds transfer shall make those 
payments for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic 
funds transfer may make payments by electronic funds transfer 
with the permission of the Department.
    All taxpayers required to make payment by electronic funds 
transfer and any taxpayers authorized to voluntarily make 
payments by electronic funds transfer shall make those 
payments in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to 
effectuate a program of electronic funds transfer and the 
requirements of this Section.
    If the serviceman is otherwise required to file a monthly 
return and if the serviceman's average monthly tax liability 
to the Department does not exceed $200, the Department may 
authorize his returns to be filed on a quarter annual basis, 
with the return for January, February and March of a given year 
being due by April 20 of such year; with the return for April, 
May and June of a given year being due by July 20 of such year; 
with the return for July, August and September of a given year 
being due by October 20 of such year, and with the return for 
October, November and December of a given year being due by 
January 20 of the following year.
    If the serviceman is otherwise required to file a monthly 
or quarterly return and if the serviceman's average monthly 
tax liability to the Department does not exceed $50, the 
Department may authorize his returns to be filed on an annual 
basis, with the return for a given year being due by January 20 
of the following year.
    Such quarter annual and annual returns, as to form and 
substance, shall be subject to the same requirements as 
monthly returns.
    Notwithstanding any other provision in this Act concerning 
the time within which a serviceman may file his return, in the 
case of any serviceman who ceases to engage in a kind of 
business which makes him responsible for filing returns under 
this Act, such serviceman shall file a final return under this 
Act with the Department not more than 1 month after 
discontinuing such business.
    Where a serviceman collects the tax with respect to the 
selling price of property which he sells and the purchaser 
thereafter returns such property and the serviceman refunds 
the selling price thereof to the purchaser, such serviceman 
shall also refund, to the purchaser, the tax so collected from 
the purchaser. When filing his return for the period in which 
he refunds such tax to the purchaser, the serviceman may 
deduct the amount of the tax so refunded by him to the 
purchaser from any other Service Use Tax, Service Occupation 
Tax, retailers' occupation tax or use tax which such 
serviceman may be required to pay or remit to the Department, 
as shown by such return, provided that the amount of the tax to 
be deducted shall previously have been remitted to the 
Department by such serviceman. If the serviceman shall not 
previously have remitted the amount of such tax to the 
Department, he shall be entitled to no deduction hereunder 
upon refunding such tax to the purchaser.
    Any serviceman filing a return hereunder shall also 
include the total tax upon the selling price of tangible 
personal property purchased for use by him as an incident to a 
sale of service, and such serviceman shall remit the amount of 
such tax to the Department when filing such return.
    If experience indicates such action to be practicable, the 
Department may prescribe and furnish a combination or joint 
return which will enable servicemen, who are required to file 
returns hereunder and also under the Service Occupation Tax 
Act, to furnish all the return information required by both 
Acts on the one form.
    Where the serviceman has more than one business registered 
with the Department under separate registration hereunder, 
such serviceman shall not file each return that is due as a 
single return covering all such registered businesses, but 
shall file separate returns for each such registered business.
    Beginning January 1, 1990, each month the Department shall 
pay into the State and Local Tax Reform Fund, a special fund in 
the State Treasury, the net revenue realized for the preceding 
month from the 1% tax imposed under this Act.
    Beginning January 1, 1990, each month the Department shall 
pay into the State and Local Sales Tax Reform Fund 20% of the 
net revenue realized for the preceding month from the 6.25% 
general rate on transfers of tangible personal property, other 
than (i) tangible personal property which is purchased outside 
Illinois at retail from a retailer and which is titled or 
registered by an agency of this State's government and (ii) 
aviation fuel sold on or after December 1, 2019. This 
exception for aviation fuel only applies for so long as the 
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
47133 are binding on the State.
    For aviation fuel sold on or after December 1, 2019, each 
month the Department shall pay into the State Aviation Program 
Fund 20% of the net revenue realized for the preceding month 
from the 6.25% general rate on the selling price of aviation 
fuel, less an amount estimated by the Department to be 
required for refunds of the 20% portion of the tax on aviation 
fuel under this Act, which amount shall be deposited into the 
Aviation Fuel Sales Tax Refund Fund. The Department shall only 
pay moneys into the State Aviation Program Fund and the 
Aviation Fuel Sales Tax Refund Fund under this Act for so long 
as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133 are binding on the State. 
    Beginning August 1, 2000, each month the Department shall 
pay into the State and Local Sales Tax Reform Fund 100% of the 
net revenue realized for the preceding month from the 1.25% 
rate on the selling price of motor fuel and gasohol.
    Beginning October 1, 2009, each month the Department shall 
pay into the Capital Projects Fund an amount that is equal to 
an amount estimated by the Department to represent 80% of the 
net revenue realized for the preceding month from the sale of 
candy, grooming and hygiene products, and soft drinks that had 
been taxed at a rate of 1% prior to September 1, 2009 but that 
are now taxed at 6.25%. 
    Beginning July 1, 2013, each month the Department shall 
pay into the Underground Storage Tank Fund from the proceeds 
collected under this Act, the Use Tax Act, the Service 
Occupation Tax Act, and the Retailers' Occupation Tax Act an 
amount equal to the average monthly deficit in the Underground 
Storage Tank Fund during the prior year, as certified annually 
by the Illinois Environmental Protection Agency, but the total 
payment into the Underground Storage Tank Fund under this Act, 
the Use Tax Act, the Service Occupation Tax Act, and the 
Retailers' Occupation Tax Act shall not exceed $18,000,000 in 
any State fiscal year. As used in this paragraph, the "average 
monthly deficit" shall be equal to the difference between the 
average monthly claims for payment by the fund and the average 
monthly revenues deposited into the fund, excluding payments 
made pursuant to this paragraph. 
    Beginning July 1, 2015, of the remainder of the moneys 
received by the Department under the Use Tax Act, this Act, the 
Service Occupation Tax Act, and the Retailers' Occupation Tax 
Act, each month the Department shall deposit $500,000 into the 
State Crime Laboratory Fund. 
    Of the remainder of the moneys received by the Department 
pursuant to this Act, (a) 1.75% thereof shall be paid into the 
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 
and after July 1, 1989, 3.8% thereof shall be paid into the 
Build Illinois Fund; provided, however, that if in any fiscal 
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case 
may be, of the moneys received by the Department and required 
to be paid into the Build Illinois Fund pursuant to Section 3 
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax 
Act, Section 9 of the Service Use Tax Act, and Section 9 of the 
Service Occupation Tax Act, such Acts being hereinafter called 
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case 
may be, of moneys being hereinafter called the "Tax Act 
Amount", and (2) the amount transferred to the Build Illinois 
Fund from the State and Local Sales Tax Reform Fund shall be 
less than the Annual Specified Amount (as defined in Section 3 
of the Retailers' Occupation Tax Act), an amount equal to the 
difference shall be immediately paid into the Build Illinois 
Fund from other moneys received by the Department pursuant to 
the Tax Acts; and further provided, that if on the last 
business day of any month the sum of (1) the Tax Act Amount 
required to be deposited into the Build Illinois Bond Account 
in the Build Illinois Fund during such month and (2) the amount 
transferred during such month to the Build Illinois Fund from 
the State and Local Sales Tax Reform Fund shall have been less 
than 1/12 of the Annual Specified Amount, an amount equal to 
the difference shall be immediately paid into the Build 
Illinois Fund from other moneys received by the Department 
pursuant to the Tax Acts; and, further provided, that in no 
event shall the payments required under the preceding proviso 
result in aggregate payments into the Build Illinois Fund 
pursuant to this clause (b) for any fiscal year in excess of 
the greater of (i) the Tax Act Amount or (ii) the Annual 
Specified Amount for such fiscal year; and, further provided, 
that the amounts payable into the Build Illinois Fund under 
this clause (b) shall be payable only until such time as the 
aggregate amount on deposit under each trust indenture 
securing Bonds issued and outstanding pursuant to the Build 
Illinois Bond Act is sufficient, taking into account any 
future investment income, to fully provide, in accordance with 
such indenture, for the defeasance of or the payment of the 
principal of, premium, if any, and interest on the Bonds 
secured by such indenture and on any Bonds expected to be 
issued thereafter and all fees and costs payable with respect 
thereto, all as certified by the Director of the Bureau of the 
Budget (now Governor's Office of Management and Budget). If on 
the last business day of any month in which Bonds are 
outstanding pursuant to the Build Illinois Bond Act, the 
aggregate of the moneys deposited in the Build Illinois Bond 
Account in the Build Illinois Fund in such month shall be less 
than the amount required to be transferred in such month from 
the Build Illinois Bond Account to the Build Illinois Bond 
Retirement and Interest Fund pursuant to Section 13 of the 
Build Illinois Bond Act, an amount equal to such deficiency 
shall be immediately paid from other moneys received by the 
Department pursuant to the Tax Acts to the Build Illinois 
Fund; provided, however, that any amounts paid to the Build 
Illinois Fund in any fiscal year pursuant to this sentence 
shall be deemed to constitute payments pursuant to clause (b) 
of the preceding sentence and shall reduce the amount 
otherwise payable for such fiscal year pursuant to clause (b) 
of the preceding sentence. The moneys received by the 
Department pursuant to this Act and required to be deposited 
into the Build Illinois Fund are subject to the pledge, claim 
and charge set forth in Section 12 of the Build Illinois Bond 
Act.
    Subject to payment of amounts into the Build Illinois Fund 
as provided in the preceding paragraph or in any amendment 
thereto hereafter enacted, the following specified monthly 
installment of the amount requested in the certificate of the 
Chairman of the Metropolitan Pier and Exposition Authority 
provided under Section 8.25f of the State Finance Act, but not 
in excess of the sums designated as "Total Deposit", shall be 
deposited in the aggregate from collections under Section 9 of 
the Use Tax Act, Section 9 of the Service Use Tax Act, Section 
9 of the Service Occupation Tax Act, and Section 3 of the 
Retailers' Occupation Tax Act into the McCormick Place 
Expansion Project Fund in the specified fiscal years.
 
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
   
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021300,000,000 
2022300,000,000
2023300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034375,000,000
2035375,000,000
2036450,000,000
and 
each fiscal year
thereafter that bonds
    
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal 
year thereafter, one-eighth of the amount requested in the 
certificate of the Chairman of the Metropolitan Pier and 
Exposition Authority for that fiscal year, less the amount 
deposited into the McCormick Place Expansion Project Fund by 
the State Treasurer in the respective month under subsection 
(g) of Section 13 of the Metropolitan Pier and Exposition 
Authority Act, plus cumulative deficiencies in the deposits 
required under this Section for previous months and years, 
shall be deposited into the McCormick Place Expansion Project 
Fund, until the full amount requested for the fiscal year, but 
not in excess of the amount specified above as "Total 
Deposit", has been deposited.
    Subject to payment of amounts into the Capital Projects 
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, 
and the McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs or in any amendments thereto hereafter 
enacted, for aviation fuel sold on or after December 1, 2019, 
the Department shall each month deposit into the Aviation Fuel 
Sales Tax Refund Fund an amount estimated by the Department to 
be required for refunds of the 80% portion of the tax on 
aviation fuel under this Act. The Department shall only 
deposit moneys into the Aviation Fuel Sales Tax Refund Fund 
under this paragraph for so long as the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
binding on the State. 
    Subject to payment of amounts into the Build Illinois Fund 
and the McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs or in any amendments thereto hereafter 
enacted, beginning July 1, 1993 and ending on September 30, 
2013, the Department shall each month pay into the Illinois 
Tax Increment Fund 0.27% of 80% of the net revenue realized for 
the preceding month from the 6.25% general rate on the selling 
price of tangible personal property.
    Subject to payment of amounts into the Build Illinois 
Fund, the McCormick Place Expansion Project Fund, the Illinois 
Tax Increment Fund, pursuant to the preceding paragraphs or in 
any amendments to this Section hereafter enacted, beginning on 
the first day of the first calendar month to occur on or after 
August 26, 2014 (the effective date of Public Act 98-1098), 
each month, from the collections made under Section 9 of the 
Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of 
the Service Occupation Tax Act, and Section 3 of the 
Retailers' Occupation Tax Act, the Department shall pay into 
the Tax Compliance and Administration Fund, to be used, 
subject to appropriation, to fund additional auditors and 
compliance personnel at the Department of Revenue, an amount 
equal to 1/12 of 5% of 80% of the cash receipts collected 
during the preceding fiscal year by the Audit Bureau of the 
Department under the Use Tax Act, the Service Use Tax Act, the 
Service Occupation Tax Act, the Retailers' Occupation Tax Act, 
and associated local occupation and use taxes administered by 
the Department. 
    Subject to payments of amounts into the Build Illinois 
Fund, the McCormick Place Expansion Project Fund, the Illinois 
Tax Increment Fund, and the Tax Compliance and Administration 
Fund as provided in this Section, beginning on July 1, 2018 the 
Department shall pay each month into the Downstate Public 
Transportation Fund the moneys required to be so paid under 
Section 2-3 of the Downstate Public Transportation Act.
    Subject to successful execution and delivery of a 
public-private agreement between the public agency and private 
entity and completion of the civic build, beginning on July 1, 
2023, of the remainder of the moneys received by the 
Department under the Use Tax Act, the Service Use Tax Act, the 
Service Occupation Tax Act, and this Act, the Department shall 
deposit the following specified deposits in the aggregate from 
collections under the Use Tax Act, the Service Use Tax Act, the 
Service Occupation Tax Act, and the Retailers' Occupation Tax 
Act, as required under Section 8.25g of the State Finance Act 
for distribution consistent with the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
The moneys received by the Department pursuant to this Act and 
required to be deposited into the Civic and Transit 
Infrastructure Fund are subject to the pledge, claim, and 
charge set forth in Section 25-55 of the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
As used in this paragraph, "civic build", "private entity", 
"public-private agreement", and "public agency" have the 
meanings provided in Section 25-10 of the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
        Fiscal Year............................Total Deposit 
        2024....................................$200,000,000 
        2025....................................$206,000,000 
        2026....................................$212,200,000 
        2027....................................$218,500,000 
        2028....................................$225,100,000 
        2029....................................$288,700,000 
        2030....................................$298,900,000 
        2031....................................$309,300,000 
        2032....................................$320,100,000 
        2033....................................$331,200,000 
        2034....................................$341,200,000 
        2035....................................$351,400,000 
        2036....................................$361,900,000 
        2037....................................$372,800,000 
        2038....................................$384,000,000 
        2039....................................$395,500,000 
        2040....................................$407,400,000 
        2041....................................$419,600,000 
        2042....................................$432,200,000 
        2043....................................$445,100,000 
    Beginning July 1, 2021 and until July 1, 2022, subject to 
the payment of amounts into the State and Local Sales Tax 
Reform Fund, the Build Illinois Fund, the McCormick Place 
Expansion Project Fund, the Energy Infrastructure Fund, and 
the Tax Compliance and Administration Fund as provided in this 
Section, the Department shall pay each month into the Road 
Fund the amount estimated to represent 16% of the net revenue 
realized from the taxes imposed on motor fuel and gasohol. 
Beginning July 1, 2022 and until July 1, 2023, subject to the 
payment of amounts into the State and Local Sales Tax Reform 
Fund, the Build Illinois Fund, the McCormick Place Expansion 
Project Fund, the Illinois Tax Increment Fund, and the Tax 
Compliance and Administration Fund as provided in this 
Section, the Department shall pay each month into the Road 
Fund the amount estimated to represent 32% of the net revenue 
realized from the taxes imposed on motor fuel and gasohol. 
Beginning July 1, 2023 and until July 1, 2024, subject to the 
payment of amounts into the State and Local Sales Tax Reform 
Fund, the Build Illinois Fund, the McCormick Place Expansion 
Project Fund, the Illinois Tax Increment Fund, and the Tax 
Compliance and Administration Fund as provided in this 
Section, the Department shall pay each month into the Road 
Fund the amount estimated to represent 48% of the net revenue 
realized from the taxes imposed on motor fuel and gasohol. 
Beginning July 1, 2024 and until July 1, 2025, subject to the 
payment of amounts into the State and Local Sales Tax Reform 
Fund, the Build Illinois Fund, the McCormick Place Expansion 
Project Fund, the Illinois Tax Increment Fund, and the Tax 
Compliance and Administration Fund as provided in this 
Section, the Department shall pay each month into the Road 
Fund the amount estimated to represent 64% of the net revenue 
realized from the taxes imposed on motor fuel and gasohol. 
Beginning on July 1, 2025, subject to the payment of amounts 
into the State and Local Sales Tax Reform Fund, the Build 
Illinois Fund, the McCormick Place Expansion Project Fund, the 
Illinois Tax Increment Fund, and the Tax Compliance and 
Administration Fund as provided in this Section, the 
Department shall pay each month into the Road Fund the amount 
estimated to represent 80% of the net revenue realized from 
the taxes imposed on motor fuel and gasohol. As used in this 
paragraph "motor fuel" has the meaning given to that term in 
Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the 
meaning given to that term in Section 3-40 of the Use Tax Act. 
    Of the remainder of the moneys received by the Department 
pursuant to this Act, 75% thereof shall be paid into the 
General Revenue Fund of the State Treasury and 25% shall be 
reserved in a special account and used only for the transfer to 
the Common School Fund as part of the monthly transfer from the 
General Revenue Fund in accordance with Section 8a of the 
State Finance Act.
    As soon as possible after the first day of each month, upon 
certification of the Department of Revenue, the Comptroller 
shall order transferred and the Treasurer shall transfer from 
the General Revenue Fund to the Motor Fuel Tax Fund an amount 
equal to 1.7% of 80% of the net revenue realized under this Act 
for the second preceding month. Beginning April 1, 2000, this 
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue 
collected by the State pursuant to this Act, less the amount 
paid out during that month as refunds to taxpayers for 
overpayment of liability.
(Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)
 
    Section 75-15. The Service Occupation Tax Act is amended 
by changing Sections 2, 3, 3-5, and 3-10 and by adding Section 
1.05 as follows:
 
    (35 ILCS 115/1.05 new)
    Sec. 1.05. Legislative intent; leases. It is the intent of 
the General Assembly in enacting this amendatory Act of the 
103rd General Assembly to apply the tax imposed under this 
Act, except as otherwise provided in this Act, to persons 
engaged in the business of making sales of service (referred 
to as "servicemen") on all tangible personal property, other 
than 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, 
transferred by lease, as an incident of a sale of service, for 
leases in effect, entered into, or renewed on or after January 
1, 2025.
 
    (35 ILCS 115/2)  (from Ch. 120, par. 439.102)
    Sec. 2. In this Act: 
    "Transfer" means any transfer of the title to property or 
of the ownership of property whether or not the transferor 
retains title as security for the payment of amounts due him 
from the transferee. On and after January 1, 2025, "transfer" 
also means any transfer of the possession or control of, the 
right to possess or control, or a license to use, but not title 
to, tangible personal property. 
    "Lease" means a transfer of the possession or control of, 
the right to possess or control, or a license to use, but not 
title to, tangible personal property for a fixed or 
indeterminate term for consideration, regardless of the name 
by which the transaction is called. "Lease" does not include a 
lease entered into merely as a security agreement that does 
not involve a transfer of possession or control from the 
lessor to the lessee. 
    On and after January 1, 2025, the term "sale", when used in 
this Act with respect to tangible personal property, includes 
a lease. 
    "Cost Price" means the consideration paid by the 
serviceman for a purchase, including, on and after January 1, 
2025, a lease, valued in money, whether paid in money or 
otherwise, including cash, credits and services, and shall be 
determined without any deduction on account of the supplier's 
cost of the property sold or on account of any other expense 
incurred by the supplier. When a serviceman contracts out part 
or all of the services required in his sale of service, it 
shall be presumed that the cost price to the serviceman of the 
property transferred to him by his or her subcontractor is 
equal to 50% of the subcontractor's charges to the serviceman 
in the absence of proof of the consideration paid by the 
subcontractor for the purchase of such property.
    "Department" means the Department of Revenue.
    "Person" means any natural individual, firm, partnership, 
association, joint stock company, joint venture, public or 
private corporation, limited liability company, and any 
receiver, executor, trustee, guardian or other representative 
appointed by order of any court.
    "Sale of Service" means any transaction except:
    (a) A retail sale of tangible personal property taxable 
under the Retailers' Occupation Tax Act or under the Use Tax 
Act.
    (b) A sale of tangible personal property for the purpose 
of resale made in compliance with Section 2c of the Retailers' 
Occupation Tax Act.
    (c) Except as hereinafter provided, a sale or transfer of 
tangible personal property as an incident to the rendering of 
service for or by any governmental body or for or by any 
corporation, society, association, foundation or institution 
organized and operated exclusively for charitable, religious 
or educational purposes or any not-for-profit corporation, 
society, association, foundation, institution or organization 
which has no compensated officers or employees and which is 
organized and operated primarily for the recreation of persons 
55 years of age or older. A limited liability company may 
qualify for the exemption under this paragraph only if the 
limited liability company is organized and operated 
exclusively for educational purposes.
    (d) (Blank).
    (d-1) A sale or transfer of tangible personal property as 
an incident to the rendering of service for owners or , 
lessors, lessees, or shippers of tangible personal property 
which is utilized by interstate carriers for hire for use as 
rolling stock moving in interstate commerce, and equipment 
operated by a telecommunications provider, licensed as a 
common carrier by the Federal Communications Commission, which 
is permanently installed in or affixed to aircraft moving in 
interstate commerce.
    (d-1.1) On and after July 1, 2003 and through June 30, 
2004, a sale or transfer of a motor vehicle of the second 
division with a gross vehicle weight in excess of 8,000 pounds 
as an incident to the rendering of service if that motor 
vehicle is subject to the commercial distribution fee imposed 
under Section 3-815.1 of the Illinois Vehicle Code. Beginning 
on July 1, 2004 and through June 30, 2005, the use in this 
State of motor vehicles of the second division: (i) with a 
gross vehicle weight rating in excess of 8,000 pounds; (ii) 
that are subject to the commercial distribution fee imposed 
under Section 3-815.1 of the Illinois Vehicle Code; and (iii) 
that are primarily used for commercial purposes. Through June 
30, 2005, this exemption applies to repair and replacement 
parts added after the initial purchase of such a motor vehicle 
if that motor vehicle is used in a manner that would qualify 
for the rolling stock exemption otherwise provided for in this 
Act. For purposes of this paragraph, "used for commercial 
purposes" means the transportation of persons or property in 
furtherance of any commercial or industrial enterprise whether 
for-hire or not. 
    (d-2) The repairing, reconditioning or remodeling, for a 
common carrier by rail, of tangible personal property which 
belongs to such carrier for hire, and as to which such carrier 
receives the physical possession of the repaired, 
reconditioned or remodeled item of tangible personal property 
in Illinois, and which such carrier transports, or shares with 
another common carrier in the transportation of such property, 
out of Illinois on a standard uniform bill of lading showing 
the person who repaired, reconditioned or remodeled the 
property as the shipper or consignor of such property to a 
destination outside Illinois, for use outside Illinois.
    (d-3) A sale or transfer of tangible personal property 
which is produced by the seller thereof on special order in 
such a way as to have made the applicable tax the Service 
Occupation Tax or the Service Use Tax, rather than the 
Retailers' Occupation Tax or the Use Tax, for an interstate 
carrier by rail which receives the physical possession of such 
property in Illinois, and which transports such property, or 
shares with another common carrier in the transportation of 
such property, out of Illinois on a standard uniform bill of 
lading showing the seller of the property as the shipper or 
consignor of such property to a destination outside Illinois, 
for use outside Illinois.
    (d-4) Until January 1, 1997, a sale, by a registered 
serviceman paying tax under this Act to the Department, of 
special order printed materials delivered outside Illinois and 
which are not returned to this State, if delivery is made by 
the seller or agent of the seller, including an agent who 
causes the product to be delivered outside Illinois by a 
common carrier or the U.S. postal service.
    (e) A sale or transfer of machinery and equipment used 
primarily in the process of the manufacturing or assembling, 
either in an existing, an expanded or a new manufacturing 
facility, of tangible personal property for wholesale or 
retail sale or lease, whether such sale or lease is made 
directly by the manufacturer or by some other person, whether 
the materials used in the process are owned by the 
manufacturer or some other person, or whether such sale or 
lease is made apart from or as an incident to the seller's 
engaging in a service occupation and the applicable tax is a 
Service Occupation Tax or Service Use Tax, rather than 
Retailers' Occupation Tax or Use Tax. The exemption provided 
by this paragraph (e) includes production related tangible 
personal property, as defined in Section 3-50 of the Use Tax 
Act, purchased on or after July 1, 2019. The exemption 
provided by this paragraph (e) does not include machinery and 
equipment used in (i) the generation of electricity for 
wholesale or retail sale; (ii) the generation or treatment of 
natural or artificial gas for wholesale or retail sale that is 
delivered to customers through pipes, pipelines, or mains; or 
(iii) the treatment of water for wholesale or retail sale that 
is delivered to customers through pipes, pipelines, or mains. 
The provisions of Public Act 98-583 are declaratory of 
existing law as to the meaning and scope of this exemption. The 
exemption under this subsection (e) is exempt from the 
provisions of Section 3-75. 
    (f) Until July 1, 2003, the sale or transfer of 
distillation machinery and equipment, sold as a unit or kit 
and assembled or installed by the retailer, which machinery 
and equipment is certified by the user to be used only for the 
production of ethyl alcohol that will be used for consumption 
as motor fuel or as a component of motor fuel for the personal 
use of such user and not subject to sale or resale.
    (g) At the election of any serviceman not required to be 
otherwise registered as a retailer under Section 2a of the 
Retailers' Occupation Tax Act, made for each fiscal year sales 
of service in which the aggregate annual cost price of 
tangible personal property transferred as an incident to the 
sales of service is less than 35% (75% in the case of 
servicemen transferring prescription drugs or servicemen 
engaged in graphic arts production) of the aggregate annual 
total gross receipts from all sales of service. The purchase 
of such tangible personal property by the serviceman shall be 
subject to tax under the Retailers' Occupation Tax Act and the 
Use Tax Act. However, if a primary serviceman who has made the 
election described in this paragraph subcontracts service work 
to a secondary serviceman who has also made the election 
described in this paragraph, the primary serviceman does not 
incur a Use Tax liability if the secondary serviceman (i) has 
paid or will pay Use Tax on his or her cost price of any 
tangible personal property transferred to the primary 
serviceman and (ii) certifies that fact in writing to the 
primary serviceman.
    Tangible personal property transferred incident to the 
completion of a maintenance agreement is exempt from the tax 
imposed pursuant to this Act.
    Exemption (e) also includes machinery and equipment used 
in the general maintenance or repair of such exempt machinery 
and equipment or for in-house manufacture of exempt machinery 
and equipment. On and after July 1, 2017, exemption (e) also 
includes graphic arts machinery and equipment, as defined in 
paragraph (5) of Section 3-5. The machinery and equipment 
exemption does not include machinery and equipment used in (i) 
the generation of electricity for wholesale or retail sale; 
(ii) the generation or treatment of natural or artificial gas 
for wholesale or retail sale that is delivered to customers 
through pipes, pipelines, or mains; or (iii) the treatment of 
water for wholesale or retail sale that is delivered to 
customers through pipes, pipelines, or mains. The provisions 
of Public Act 98-583 are declaratory of existing law as to the 
meaning and scope of this exemption. For the purposes of 
exemption (e), each of these terms shall have the following 
meanings: (1) "manufacturing process" shall mean the 
production of any article of tangible personal property, 
whether such article is a finished product or an article for 
use in the process of manufacturing or assembling a different 
article of tangible personal property, by procedures commonly 
regarded as manufacturing, processing, fabricating, or 
refining which changes some existing material or materials 
into a material with a different form, use or name. In relation 
to a recognized integrated business composed of a series of 
operations which collectively constitute manufacturing, or 
individually constitute manufacturing operations, the 
manufacturing process shall be deemed to commence with the 
first operation or stage of production in the series, and 
shall not be deemed to end until the completion of the final 
product in the last operation or stage of production in the 
series; and further for purposes of exemption (e), 
photoprocessing is deemed to be a manufacturing process of 
tangible personal property for wholesale or retail sale; (2) 
"assembling process" shall mean the production of any article 
of tangible personal property, whether such article is a 
finished product or an article for use in the process of 
manufacturing or assembling a different article of tangible 
personal property, by the combination of existing materials in 
a manner commonly regarded as assembling which results in a 
material of a different form, use or name; (3) "machinery" 
shall mean major mechanical machines or major components of 
such machines contributing to a manufacturing or assembling 
process; and (4) "equipment" shall include any independent 
device or tool separate from any machinery but essential to an 
integrated manufacturing or assembly process; including 
computers used primarily in a manufacturer's computer assisted 
design, computer assisted manufacturing (CAD/CAM) system; or 
any subunit or assembly comprising a component of any 
machinery or auxiliary, adjunct or attachment parts of 
machinery, such as tools, dies, jigs, fixtures, patterns and 
molds; or any parts which require periodic replacement in the 
course of normal operation; but shall not include hand tools. 
Equipment includes chemicals or chemicals acting as catalysts 
but only if the chemicals or chemicals acting as catalysts 
effect a direct and immediate change upon a product being 
manufactured or assembled for wholesale or retail sale or 
lease. The purchaser of such machinery and equipment who has 
an active resale registration number shall furnish such number 
to the seller at the time of purchase. The purchaser of such 
machinery and equipment and tools without an active resale 
registration number shall furnish to the seller a certificate 
of exemption stating facts establishing the exemption, which 
certificate shall be available to the Department for 
inspection or audit.
    Except as provided in Section 2d of this Act, the rolling 
stock exemption applies to rolling stock used by an interstate 
carrier for hire, even just between points in Illinois, if 
such rolling stock transports, for hire, persons whose 
journeys or property whose shipments originate or terminate 
outside Illinois.
    Any informal rulings, opinions or letters issued by the 
Department in response to an inquiry or request for any 
opinion from any person regarding the coverage and 
applicability of exemption (e) to specific devices shall be 
published, maintained as a public record, and made available 
for public inspection and copying. If the informal ruling, 
opinion or letter contains trade secrets or other confidential 
information, where possible the Department shall delete such 
information prior to publication. Whenever such informal 
rulings, opinions, or letters contain any policy of general 
applicability, the Department shall formulate and adopt such 
policy as a rule in accordance with the provisions of the 
Illinois Administrative Procedure Act.
    On and after July 1, 1987, no entity otherwise eligible 
under exemption (c) of this Section shall make tax-free 
purchases unless it has an active exemption identification 
number issued by the Department.
    "Serviceman" means any person who is engaged in the 
occupation of making sales of service.
    "Sale at Retail" means "sale at retail" as defined in the 
Retailers' Occupation Tax Act, which, on and after January 1, 
2025, is defined to include leases.
    "Supplier" means any person who makes sales of tangible 
personal property to servicemen for the purpose of resale as 
an incident to a sale of service.
(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 
100-863, eff. 8-14-18; 101-9, eff. 6-5-19; 101-604, eff. 
12-13-19.)
 
    (35 ILCS 115/3)  (from Ch. 120, par. 439.103)
    Sec. 3. Tax imposed. A tax is imposed upon all persons 
engaged in the business of making sales of service (referred 
to as "servicemen") on all tangible personal property 
transferred, including, on and after January 1, 2025, 
transferred by lease, as an incident of a sale of service, 
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 public 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. Sales 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 tangible 
personal property transferred by lease by persons engaged in 
the business of making sales of service applies to leases 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 serviceman who is a lessor must remit for each tax 
return period only the tax applicable to that part of the 
selling price actually received during such tax return period. 
(Source: P.A. 98-583, eff. 1-1-14.)
 
    (35 ILCS 115/3-5)
    Sec. 3-5. Exemptions. The following tangible personal 
property is exempt from the tax imposed by this Act:
    (1) Personal property sold by a corporation, society, 
association, foundation, institution, or organization, other 
than a limited liability company, that is organized and 
operated as a not-for-profit service enterprise for the 
benefit of persons 65 years of age or older if the personal 
property was not purchased by the enterprise for the purpose 
of resale by the enterprise.
    (2) Personal property purchased by a not-for-profit 
Illinois county fair association for use in conducting, 
operating, or promoting the county fair.
    (3) Personal property purchased by any not-for-profit arts 
or cultural organization that establishes, by proof required 
by the Department by rule, that it has received an exemption 
under Section 501(c)(3) of the Internal Revenue Code and that 
is organized and operated primarily for the presentation or 
support of arts or cultural programming, activities, or 
services. These organizations include, but are not limited to, 
music and dramatic arts organizations such as symphony 
orchestras and theatrical groups, arts and cultural service 
organizations, local arts councils, visual arts organizations, 
and media arts organizations. On and after July 1, 2001 (the 
effective date of Public Act 92-35), however, an entity 
otherwise eligible for this exemption shall not make tax-free 
purchases unless it has an active identification number issued 
by the Department.
    (4) Legal tender, currency, medallions, or gold or silver 
coinage issued by the State of Illinois, the government of the 
United States of America, or the government of any foreign 
country, and bullion.
    (5) Until July 1, 2003 and beginning again on September 1, 
2004 through August 30, 2014, graphic arts machinery and 
equipment, including repair and replacement parts, both new 
and used, and including that manufactured on special order or 
purchased for lease, certified by the purchaser to be used 
primarily for graphic arts production. Equipment includes 
chemicals or chemicals acting as catalysts but only if the 
chemicals or chemicals acting as catalysts effect a direct and 
immediate change upon a graphic arts product. Beginning on 
July 1, 2017, graphic arts machinery and equipment is included 
in the manufacturing and assembling machinery and equipment 
exemption under Section 2 of this Act.
    (6) Personal property sold by a teacher-sponsored student 
organization affiliated with an elementary or secondary school 
located in Illinois.
    (7) Farm machinery and equipment, both new and used, 
including that manufactured on special order, certified by the 
purchaser to be used primarily for production agriculture or 
State or federal agricultural programs, including individual 
replacement parts for the machinery and equipment, including 
machinery and equipment purchased for lease, and including 
implements of husbandry defined in Section 1-130 of the 
Illinois Vehicle Code, farm machinery and agricultural 
chemical and fertilizer spreaders, and nurse wagons required 
to be registered under Section 3-809 of the Illinois Vehicle 
Code, but excluding other motor vehicles required to be 
registered under the Illinois Vehicle Code. Horticultural 
polyhouses or hoop houses used for propagating, growing, or 
overwintering plants shall be considered farm machinery and 
equipment under this item (7). Agricultural chemical tender 
tanks and dry boxes shall include units sold separately from a 
motor vehicle required to be licensed and units sold mounted 
on a motor vehicle required to be licensed if the selling price 
of the tender is separately stated.
    Farm machinery and equipment shall include precision 
farming equipment that is installed or purchased to be 
installed on farm machinery and equipment, including, but not 
limited to, tractors, harvesters, sprayers, planters, seeders, 
or spreaders. Precision farming equipment includes, but is not 
limited to, soil testing sensors, computers, monitors, 
software, global positioning and mapping systems, and other 
such equipment.
    Farm machinery and equipment also includes computers, 
sensors, software, and related equipment used primarily in the 
computer-assisted operation of production agriculture 
facilities, equipment, and activities such as, but not limited 
to, the collection, monitoring, and correlation of animal and 
crop data for the purpose of formulating animal diets and 
agricultural chemicals. 
    Beginning on January 1, 2024, farm machinery and equipment 
also includes electrical power generation equipment used 
primarily for production agriculture. 
    This item (7) is exempt from the provisions of Section 
3-55.
    (8) Until June 30, 2013, fuel and petroleum products sold 
to or used by an air common carrier, certified by the carrier 
to be used for consumption, shipment, or storage in the 
conduct of its business as an air common carrier, for a flight 
destined for or returning from a location or locations outside 
the United States without regard to previous or subsequent 
domestic stopovers.
    Beginning July 1, 2013, fuel and petroleum products sold 
to or used by an air carrier, certified by the carrier to be 
used for consumption, shipment, or storage in the conduct of 
its business as an air common carrier, for a flight that (i) is 
engaged in foreign trade or is engaged in trade between the 
United States and any of its possessions and (ii) transports 
at least one individual or package for hire from the city of 
origination to the city of final destination on the same 
aircraft, without regard to a change in the flight number of 
that aircraft. 
    (9) Proceeds of mandatory service charges separately 
stated on customers' bills for the purchase and consumption of 
food and beverages, to the extent that the proceeds of the 
service charge are in fact turned over as tips or as a 
substitute for tips to the employees who participate directly 
in preparing, serving, hosting or cleaning up the food or 
beverage function with respect to which the service charge is 
imposed.
    (10) Until July 1, 2003, oil field exploration, drilling, 
and production equipment, including (i) rigs and parts of 
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) 
pipe and tubular goods, including casing and drill strings, 
(iii) pumps and pump-jack units, (iv) storage tanks and flow 
lines, (v) any individual replacement part for oil field 
exploration, drilling, and production equipment, and (vi) 
machinery and equipment purchased for lease; but excluding 
motor vehicles required to be registered under the Illinois 
Vehicle Code.
    (11) Photoprocessing machinery and equipment, including 
repair and replacement parts, both new and used, including 
that manufactured on special order, certified by the purchaser 
to be used primarily for photoprocessing, and including 
photoprocessing machinery and equipment purchased for lease.
    (12) Until July 1, 2028, coal and aggregate exploration, 
mining, off-highway hauling, processing, maintenance, and 
reclamation equipment, including replacement parts and 
equipment, and including equipment purchased for lease, but 
excluding motor vehicles required to be registered under the 
Illinois Vehicle Code. The changes made to this Section by 
Public Act 97-767 apply on and after July 1, 2003, but no claim 
for credit or refund is allowed on or after August 16, 2013 
(the effective date of Public Act 98-456) for such taxes paid 
during the period beginning July 1, 2003 and ending on August 
16, 2013 (the effective date of Public Act 98-456).
    (13) Beginning January 1, 1992 and through June 30, 2016, 
food for human consumption that is to be consumed off the 
premises where it is sold (other than alcoholic beverages, 
soft drinks and food that has been prepared for immediate 
consumption) and prescription and non-prescription medicines, 
drugs, medical appliances, and insulin, urine testing 
materials, syringes, and needles used by diabetics, for human 
use, when purchased for use by a person receiving medical 
assistance under Article V of the Illinois Public Aid Code who 
resides in a licensed long-term care facility, as defined in 
the Nursing Home Care Act, or in a licensed facility as defined 
in the ID/DD Community Care Act, the MC/DD Act, or the 
Specialized Mental Health Rehabilitation Act of 2013.
    (14) Semen used for artificial insemination of livestock 
for direct agricultural production.
    (15) Horses, or interests in horses, registered with and 
meeting the requirements of any of the Arabian Horse Club 
Registry of America, Appaloosa Horse Club, American Quarter 
Horse Association, United States Trotting Association, or 
Jockey Club, as appropriate, used for purposes of breeding or 
racing for prizes. This item (15) is exempt from the 
provisions of Section 3-55, and the exemption provided for 
under this item (15) applies for all periods beginning May 30, 
1995, but no claim for credit or refund is allowed on or after 
January 1, 2008 (the effective date of Public Act 95-88) for 
such taxes paid during the period beginning May 30, 2000 and 
ending on January 1, 2008 (the effective date of Public Act 
95-88).
    (16) Computers and communications equipment utilized for 
any hospital purpose and equipment used in the diagnosis, 
analysis, or treatment of hospital patients sold to a lessor 
who leases the equipment, under a lease of one year or longer 
executed or in effect at the time of the purchase, to a 
hospital that has been issued an active tax exemption 
identification number by the Department under Section 1g of 
the Retailers' Occupation Tax Act.
    (17) Personal property sold to a lessor who leases the 
property, under a lease of one year or longer executed or in 
effect at the time of the purchase, to a governmental body that 
has been issued an active tax exemption identification number 
by the Department under Section 1g of the Retailers' 
Occupation Tax Act.
    (18) Beginning with taxable years ending on or after 
December 31, 1995 and ending with taxable years ending on or 
before December 31, 2004, personal property that is donated 
for disaster relief to be used in a State or federally declared 
disaster area in Illinois or bordering Illinois by a 
manufacturer or retailer that is registered in this State to a 
corporation, society, association, foundation, or institution 
that has been issued a sales tax exemption identification 
number by the Department that assists victims of the disaster 
who reside within the declared disaster area.
    (19) Beginning with taxable years ending on or after 
December 31, 1995 and ending with taxable years ending on or 
before December 31, 2004, personal property that is used in 
the performance of infrastructure repairs in this State, 
including, but not limited to, municipal roads and streets, 
access roads, bridges, sidewalks, waste disposal systems, 
water and sewer line extensions, water distribution and 
purification facilities, storm water drainage and retention 
facilities, and sewage treatment facilities, resulting from a 
State or federally declared disaster in Illinois or bordering 
Illinois when such repairs are initiated on facilities located 
in the declared disaster area within 6 months after the 
disaster.
    (20) Beginning July 1, 1999, game or game birds sold at a 
"game breeding and hunting preserve area" as that term is used 
in the Wildlife Code. This paragraph is exempt from the 
provisions of Section 3-55.
    (21) A motor vehicle, as that term is defined in Section 
1-146 of the Illinois Vehicle Code, that is donated to a 
corporation, limited liability company, society, association, 
foundation, or institution that is determined by the 
Department to be organized and operated exclusively for 
educational purposes. For purposes of this exemption, "a 
corporation, limited liability company, society, association, 
foundation, or institution organized and operated exclusively 
for educational purposes" means all tax-supported public 
schools, private schools that offer systematic instruction in 
useful branches of learning by methods common to public 
schools and that compare favorably in their scope and 
intensity with the course of study presented in tax-supported 
schools, and vocational or technical schools or institutes 
organized and operated exclusively to provide a course of 
study of not less than 6 weeks duration and designed to prepare 
individuals to follow a trade or to pursue a manual, 
technical, mechanical, industrial, business, or commercial 
occupation.
    (22) Beginning January 1, 2000, personal property, 
including food, purchased through fundraising events for the 
benefit of a public or private elementary or secondary school, 
a group of those schools, or one or more school districts if 
the events are sponsored by an entity recognized by the school 
district that consists primarily of volunteers and includes 
parents and teachers of the school children. This paragraph 
does not apply to fundraising events (i) for the benefit of 
private home instruction or (ii) for which the fundraising 
entity purchases the personal property sold at the events from 
another individual or entity that sold the property for the 
purpose of resale by the fundraising entity and that profits 
from the sale to the fundraising entity. This paragraph is 
exempt from the provisions of Section 3-55.
    (23) Beginning January 1, 2000 and through December 31, 
2001, new or used automatic vending machines that prepare and 
serve hot food and beverages, including coffee, soup, and 
other items, and replacement parts for these machines. 
Beginning January 1, 2002 and through June 30, 2003, machines 
and parts for machines used in commercial, coin-operated 
amusement and vending business if a use or occupation tax is 
paid on the gross receipts derived from the use of the 
commercial, coin-operated amusement and vending machines. This 
paragraph is exempt from the provisions of Section 3-55.
    (24) Beginning on August 2, 2001 (the effective date of 
Public Act 92-227), computers and communications equipment 
utilized for any hospital purpose and equipment used in the 
diagnosis, analysis, or treatment of hospital patients sold to 
a lessor who leases the equipment, under a lease of one year or 
longer executed or in effect at the time of the purchase, to a 
hospital that has been issued an active tax exemption 
identification number by the Department under Section 1g of 
the Retailers' Occupation Tax Act. This paragraph is exempt 
from the provisions of Section 3-55.
    (25) Beginning on August 2, 2001 (the effective date of 
Public Act 92-227), personal property sold to a lessor who 
leases the property, under a lease of one year or longer 
executed or in effect at the time of the purchase, to a 
governmental body that has been issued an active tax exemption 
identification number by the Department under Section 1g of 
the Retailers' Occupation Tax Act. This paragraph is exempt 
from the provisions of Section 3-55.
    (26) Beginning on January 1, 2002 and through June 30, 
2016, tangible personal property purchased from an Illinois 
retailer by a taxpayer engaged in centralized purchasing 
activities in Illinois who will, upon receipt of the property 
in Illinois, temporarily store the property in Illinois (i) 
for the purpose of subsequently transporting it outside this 
State for use or consumption thereafter solely outside this 
State or (ii) for the purpose of being processed, fabricated, 
or manufactured into, attached to, or incorporated into other 
tangible personal property to be transported outside this 
State and thereafter used or consumed solely outside this 
State. The Director of Revenue shall, pursuant to rules 
adopted in accordance with the Illinois Administrative 
Procedure Act, issue a permit to any taxpayer in good standing 
with the Department who is eligible for the exemption under 
this paragraph (26). The permit issued under this paragraph 
(26) shall authorize the holder, to the extent and in the 
manner specified in the rules adopted under this Act, to 
purchase tangible personal property from a retailer exempt 
from the taxes imposed by this Act. Taxpayers shall maintain 
all necessary books and records to substantiate the use and 
consumption of all such tangible personal property outside of 
the State of Illinois.
    (27) Beginning January 1, 2008, tangible personal property 
used in the construction or maintenance of a community water 
supply, as defined under Section 3.145 of the Environmental 
Protection Act, that is operated by a not-for-profit 
corporation that holds a valid water supply permit issued 
under Title IV of the Environmental Protection Act. This 
paragraph is exempt from the provisions of Section 3-55. 
    (28) Tangible personal property sold to a 
public-facilities corporation, as described in Section 
11-65-10 of the Illinois Municipal Code, for purposes of 
constructing or furnishing a municipal convention hall, but 
only if the legal title to the municipal convention hall is 
transferred to the municipality without any further 
consideration by or on behalf of the municipality at the time 
of the completion of the municipal convention hall or upon the 
retirement or redemption of any bonds or other debt 
instruments issued by the public-facilities corporation in 
connection with the development of the municipal convention 
hall. This exemption includes existing public-facilities 
corporations as provided in Section 11-65-25 of the Illinois 
Municipal Code. This paragraph is exempt from the provisions 
of Section 3-55. 
    (29) Beginning January 1, 2010 and continuing through 
December 31, 2029, materials, parts, equipment, components, 
and furnishings incorporated into or upon an aircraft as part 
of the modification, refurbishment, completion, replacement, 
repair, or maintenance of the aircraft. This exemption 
includes consumable supplies used in the modification, 
refurbishment, completion, replacement, repair, and 
maintenance of aircraft. However, until January 1, 2024, this 
exemption excludes any materials, parts, equipment, 
components, and consumable supplies used in the modification, 
replacement, repair, and maintenance of aircraft engines or 
power plants, whether such engines or power plants are 
installed or uninstalled upon any such aircraft. "Consumable 
supplies" include, but are not limited to, adhesive, tape, 
sandpaper, general purpose lubricants, cleaning solution, 
latex gloves, and protective films. 
    Beginning January 1, 2010 and continuing through December 
31, 2023, this exemption applies only to the transfer of 
qualifying tangible personal property incident to the 
modification, refurbishment, completion, replacement, repair, 
or maintenance of an aircraft by persons who (i) hold an Air 
Agency Certificate and are empowered to operate an approved 
repair station by the Federal Aviation Administration, (ii) 
have a Class IV Rating, and (iii) conduct operations in 
accordance with Part 145 of the Federal Aviation Regulations. 
The exemption does not include aircraft operated by a 
commercial air carrier providing scheduled passenger air 
service pursuant to authority issued under Part 121 or Part 
129 of the Federal Aviation Regulations. From January 1, 2024 
through December 31, 2029, this exemption applies only to the 
use of qualifying tangible personal property by: (A) persons 
who modify, refurbish, complete, repair, replace, or maintain 
aircraft and who (i) hold an Air Agency Certificate and are 
empowered to operate an approved repair station by the Federal 
Aviation Administration, (ii) have a Class IV Rating, and 
(iii) conduct operations in accordance with Part 145 of the 
Federal Aviation Regulations; and (B) persons who engage in 
the modification, replacement, repair, and maintenance of 
aircraft engines or power plants without regard to whether or 
not those persons meet the qualifications of item (A).
    The changes made to this paragraph (29) by Public Act 
98-534 are declarative of existing law. It is the intent of the 
General Assembly that the exemption under this paragraph (29) 
applies continuously from January 1, 2010 through December 31, 
2024; however, no claim for credit or refund is allowed for 
taxes paid as a result of the disallowance of this exemption on 
or after January 1, 2015 and prior to February 5, 2020 (the 
effective date of Public Act 101-629).
    (30) Beginning January 1, 2017 and through December 31, 
2026, menstrual pads, tampons, and menstrual cups. 
    (31) Tangible personal property transferred to a purchaser 
who is exempt from tax by operation of federal law. This 
paragraph is exempt from the provisions of Section 3-55. 
    (32) Qualified tangible personal property used in the 
construction or operation of a data center that has been 
granted a certificate of exemption by the Department of 
Commerce and Economic Opportunity, whether that tangible 
personal property is purchased by the owner, operator, or 
tenant of the data center or by a contractor or subcontractor 
of the owner, operator, or tenant. Data centers that would 
have qualified for a certificate of exemption prior to January 
1, 2020 had Public Act 101-31 been in effect, may apply for and 
obtain an exemption for subsequent purchases of computer 
equipment or enabling software purchased or leased to upgrade, 
supplement, or replace computer equipment or enabling software 
purchased or leased in the original investment that would have 
qualified. 
    The Department of Commerce and Economic Opportunity shall 
grant a certificate of exemption under this item (32) to 
qualified data centers as defined by Section 605-1025 of the 
Department of Commerce and Economic Opportunity Law of the 
Civil Administrative Code of Illinois. 
    For the purposes of this item (32): 
        "Data center" means a building or a series of 
    buildings rehabilitated or constructed to house working 
    servers in one physical location or multiple sites within 
    the State of Illinois. 
        "Qualified tangible personal property" means: 
    electrical systems and equipment; climate control and 
    chilling equipment and systems; mechanical systems and 
    equipment; monitoring and secure systems; emergency 
    generators; hardware; computers; servers; data storage 
    devices; network connectivity equipment; racks; cabinets; 
    telecommunications cabling infrastructure; raised floor 
    systems; peripheral components or systems; software; 
    mechanical, electrical, or plumbing systems; battery 
    systems; cooling systems and towers; temperature control 
    systems; other cabling; and other data center 
    infrastructure equipment and systems necessary to operate 
    qualified tangible personal property, including fixtures; 
    and component parts of any of the foregoing, including 
    installation, maintenance, repair, refurbishment, and 
    replacement of qualified tangible personal property to 
    generate, transform, transmit, distribute, or manage 
    electricity necessary to operate qualified tangible 
    personal property; and all other tangible personal 
    property that is essential to the operations of a computer 
    data center. The term "qualified tangible personal 
    property" also includes building materials physically 
    incorporated into in to the qualifying data center. To 
    document the exemption allowed under this Section, the 
    retailer must obtain from the purchaser a copy of the 
    certificate of eligibility issued by the Department of 
    Commerce and Economic Opportunity. 
    This item (32) is exempt from the provisions of Section 
3-55. 
    (33) Beginning July 1, 2022, breast pumps, breast pump 
collection and storage supplies, and breast pump kits. This 
item (33) is exempt from the provisions of Section 3-55. As 
used in this item (33): 
        "Breast pump" means an electrically controlled or 
    manually controlled pump device designed or marketed to be 
    used to express milk from a human breast during lactation, 
    including the pump device and any battery, AC adapter, or 
    other power supply unit that is used to power the pump 
    device and is packaged and sold with the pump device at the 
    time of sale. 
        "Breast pump collection and storage supplies" means 
    items of tangible personal property designed or marketed 
    to be used in conjunction with a breast pump to collect 
    milk expressed from a human breast and to store collected 
    milk until it is ready for consumption. 
        "Breast pump collection and storage supplies" 
    includes, but is not limited to: breast shields and breast 
    shield connectors; breast pump tubes and tubing adapters; 
    breast pump valves and membranes; backflow protectors and 
    backflow protector adaptors; bottles and bottle caps 
    specific to the operation of the breast pump; and breast 
    milk storage bags. 
        "Breast pump collection and storage supplies" does not 
    include: (1) bottles and bottle caps not specific to the 
    operation of the breast pump; (2) breast pump travel bags 
    and other similar carrying accessories, including ice 
    packs, labels, and other similar products; (3) breast pump 
    cleaning supplies; (4) nursing bras, bra pads, breast 
    shells, and other similar products; and (5) creams, 
    ointments, and other similar products that relieve 
    breastfeeding-related symptoms or conditions of the 
    breasts or nipples, unless sold as part of a breast pump 
    kit that is pre-packaged by the breast pump manufacturer 
    or distributor. 
        "Breast pump kit" means a kit that: (1) contains no 
    more than a breast pump, breast pump collection and 
    storage supplies, a rechargeable battery for operating the 
    breast pump, a breastmilk cooler, bottle stands, ice 
    packs, and a breast pump carrying case; and (2) is 
    pre-packaged as a breast pump kit by the breast pump 
    manufacturer or distributor. 
    (34) Tangible personal property sold by or on behalf of 
the State Treasurer pursuant to the Revised Uniform Unclaimed 
Property Act. This item (34) is exempt from the provisions of 
Section 3-55.
    (35) Beginning on January 1, 2024, tangible personal 
property purchased by an active duty member of the armed 
forces of the United States who presents valid military 
identification and purchases the property using a form of 
payment where the federal government is the payor. The member 
of the armed forces must complete, at the point of sale, a form 
prescribed by the Department of Revenue documenting that the 
transaction is eligible for the exemption under this 
paragraph. Retailers must keep the form as documentation of 
the exemption in their records for a period of not less than 6 
years. "Armed forces of the United States" means the United 
States Army, Navy, Air Force, Marine Corps, or Coast Guard. 
This paragraph is exempt from the provisions of Section 3-55. 
    (36) The lease of the following tangible personal 
property:
        (1) computer software transferred subject to a license 
    that meets the following requirements:
            (A) it is evidenced by a written agreement signed 
        by the licensor and the customer;
                (i) an electronic agreement in which the 
            customer accepts the license by means of an 
            electronic signature that is verifiable and can be 
            authenticated and is attached to or made part of 
            the license will comply with this requirement;
                (ii) a license agreement in which the customer 
            electronically accepts the terms by clicking "I 
            agree" does not comply with this requirement;
            (B) it restricts the customer's duplication and 
        use of the software;
            (C) it prohibits the customer from licensing, 
        sublicensing, or transferring the software to a third 
        party (except to a related party) without the 
        permission and continued control of the licensor;
            (D) the licensor has a policy of providing another 
        copy at minimal or no charge if the customer loses or 
        damages the software, or of permitting the licensee to 
        make and keep an archival copy, and such policy is 
        either stated in the license agreement, supported by 
        the licensor's books and records, or supported by a 
        notarized statement made under penalties of perjury by 
        the licensor; and
            (E) the customer must destroy or return all copies 
        of the software to the licensor at the end of the 
        license period; this provision is deemed to be met, in 
        the case of a perpetual license, without being set 
        forth in the license agreement; and
        (2) property that is subject to a tax on lease 
    receipts imposed by a home rule unit of local government 
    if the ordinance imposing that tax was adopted prior to 
    January 1, 2023. 
(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, 
Section 70-15, eff. 4-19-22; 102-700, Article 75, Section 
75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, 
Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15, 
eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; 
revised 12-12-23.)
 
    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
    Sec. 3-10. Rate of tax. Unless otherwise provided in this 
Section, the tax imposed by this Act is at the rate of 6.25% of 
the "selling price", as defined in Section 2 of the Service Use 
Tax Act, of the tangible personal property, including, on and 
after January 1, 2025, tangible personal property transferred 
by lease. For the purpose of computing this tax, in no event 
shall the "selling price" be less than the cost price to the 
serviceman of the tangible personal property transferred. The 
selling price of each item of tangible personal property 
transferred as an incident of a sale of service may be shown as 
a distinct and separate item on the serviceman's billing to 
the service customer. If the selling price is not so shown, the 
selling price of the tangible personal property is deemed to 
be 50% of the serviceman's entire billing to the service 
customer. When, however, a serviceman contracts to design, 
develop, and produce special order machinery or equipment, the 
tax imposed by this Act shall be based on the serviceman's cost 
price of the tangible personal property transferred incident 
to the completion of the contract.
    Beginning on July 1, 2000 and through December 31, 2000, 
with respect to motor fuel, as defined in Section 1.1 of the 
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of 
the Use Tax Act, the tax is imposed at the rate of 1.25%.
    With respect to gasohol, as defined in the Use Tax Act, the 
tax imposed by this Act shall apply to (i) 70% of the cost 
price of property transferred as an incident to the sale of 
service on or after January 1, 1990, and before July 1, 2003, 
(ii) 80% of the selling price of property transferred as an 
incident to the sale of service on or after July 1, 2003 and on 
or before July 1, 2017, (iii) 100% of the selling price of 
property transferred as an incident to the sale of service 
after July 1, 2017 and prior to January 1, 2024, (iv) 90% of 
the selling price of property transferred as an incident to 
the sale of service on or after January 1, 2024 and on or 
before December 31, 2028, and (v) 100% of the selling price of 
property transferred as an incident to the sale of service 
after December 31, 2028. If, at any time, however, the tax 
under this Act on sales of gasohol, as defined in the Use Tax 
Act, is imposed at the rate of 1.25%, then the tax imposed by 
this Act applies to 100% of the proceeds of sales of gasohol 
made during that time.
    With respect to mid-range ethanol blends, as defined in 
Section 3-44.3 of the Use Tax Act, the tax imposed by this Act 
applies to (i) 80% of the selling price of property 
transferred as an incident to the sale of service on or after 
January 1, 2024 and on or before December 31, 2028 and (ii) 
100% of the selling price of property transferred as an 
incident to the sale of service after December 31, 2028. If, at 
any time, however, the tax under this Act on sales of mid-range 
ethanol blends is imposed at the rate of 1.25%, then the tax 
imposed by this Act applies to 100% of the selling price of 
mid-range ethanol blends transferred as an incident to the 
sale of service during that time. 
    With respect to majority blended ethanol fuel, as defined 
in the Use Tax Act, the tax imposed by this Act does not apply 
to the selling price of property transferred as an incident to 
the sale of service on or after July 1, 2003 and on or before 
December 31, 2028 but applies to 100% of the selling price 
thereafter.
    With respect to biodiesel blends, as defined in the Use 
Tax Act, with no less than 1% and no more than 10% biodiesel, 
the tax imposed by this Act applies to (i) 80% of the selling 
price of property transferred as an incident to the sale of 
service on or after July 1, 2003 and on or before December 31, 
2018 and (ii) 100% of the proceeds of the selling price after 
December 31, 2018 and before January 1, 2024. On and after 
January 1, 2024 and on or before December 31, 2030, the 
taxation of biodiesel, renewable diesel, and biodiesel blends 
shall be as provided in Section 3-5.1 of the Use Tax Act. If, 
at any time, however, the tax under this Act on sales of 
biodiesel blends, as defined in the Use Tax Act, with no less 
than 1% and no more than 10% biodiesel is imposed at the rate 
of 1.25%, then the tax imposed by this Act applies to 100% of 
the proceeds of sales of biodiesel blends with no less than 1% 
and no more than 10% biodiesel made during that time.
    With respect to biodiesel, as defined in the Use Tax Act, 
and biodiesel blends, as defined in the Use Tax Act, with more 
than 10% but no more than 99% biodiesel material, the tax 
imposed by this Act does not apply to the proceeds of the 
selling price of property transferred as an incident to the 
sale of service on or after July 1, 2003 and on or before 
December 31, 2023. On and after January 1, 2024 and on or 
before December 31, 2030, the taxation of biodiesel, renewable 
diesel, and biodiesel blends shall be as provided in Section 
3-5.1 of the Use Tax Act.
    At the election of any registered serviceman made for each 
fiscal year, sales of service in which the aggregate annual 
cost price of tangible personal property transferred as an 
incident to the sales of service is less than 35%, or 75% in 
the case of servicemen transferring prescription drugs or 
servicemen engaged in graphic arts production, of the 
aggregate annual total gross receipts from all sales of 
service, the tax imposed by this Act shall be based on the 
serviceman's cost price of the tangible personal property 
transferred incident to the sale of those services.
    Until July 1, 2022 and beginning again on July 1, 2023, the 
tax shall be imposed at the rate of 1% on food prepared for 
immediate consumption and transferred incident to a sale of 
service subject to this Act or the Service Use Tax Act by an 
entity licensed under the Hospital Licensing Act, the Nursing 
Home Care Act, the Assisted Living and Shared Housing Act, the 
ID/DD Community Care Act, the MC/DD Act, the Specialized 
Mental Health Rehabilitation Act of 2013, or the Child Care 
Act of 1969, or an entity that holds a permit issued pursuant 
to the Life Care Facilities Act. Until July 1, 2022 and 
beginning again on July 1, 2023, the tax shall also be imposed 
at the rate of 1% on food for human consumption that is to be 
consumed off the premises where it is sold (other than 
alcoholic beverages, food consisting of or infused with adult 
use cannabis, soft drinks, and food that has been prepared for 
immediate consumption and is not otherwise included in this 
paragraph).
    Beginning on July 1, 2022 and until July 1, 2023, the tax 
shall be imposed at the rate of 0% on food prepared for 
immediate consumption and transferred incident to a sale of 
service subject to this Act or the Service Use Tax Act by an 
entity licensed under the Hospital Licensing Act, the Nursing 
Home Care Act, the Assisted Living and Shared Housing Act, the 
ID/DD Community Care Act, the MC/DD Act, the Specialized 
Mental Health Rehabilitation Act of 2013, or the Child Care 
Act of 1969, or an entity that holds a permit issued pursuant 
to the Life Care Facilities Act. Beginning July 1, 2022 and 
until July 1, 2023, the tax shall also be imposed at the rate 
of 0% on food for human consumption that is to be consumed off 
the premises where it is sold (other than alcoholic beverages, 
food consisting of or infused with adult use cannabis, soft 
drinks, and food that has been prepared for immediate 
consumption and is not otherwise included in this paragraph). 
    The tax shall also be imposed at the rate of 1% on 
prescription and nonprescription medicines, drugs, medical 
appliances, products classified as Class III medical devices 
by the United States Food and Drug Administration that are 
used for cancer treatment pursuant to a prescription, as well 
as any accessories and components related to those devices, 
modifications to a motor vehicle for the purpose of rendering 
it usable by a person with a disability, and insulin, blood 
sugar testing materials, syringes, and needles used by human 
diabetics. For the purposes of this Section, until September 
1, 2009: the term "soft drinks" means any complete, finished, 
ready-to-use, non-alcoholic drink, whether carbonated or not, 
including, but not limited to, soda water, cola, fruit juice, 
vegetable juice, carbonated water, and all other preparations 
commonly known as soft drinks of whatever kind or description 
that are contained in any closed or sealed can, carton, or 
container, regardless of size; but "soft drinks" does not 
include coffee, tea, non-carbonated water, infant formula, 
milk or milk products as defined in the Grade A Pasteurized 
Milk and Milk Products Act, or drinks containing 50% or more 
natural fruit or vegetable juice.
    Notwithstanding any other provisions of this Act, 
beginning September 1, 2009, "soft drinks" means non-alcoholic 
beverages that contain natural or artificial sweeteners. "Soft 
drinks" does not include beverages that contain milk or milk 
products, soy, rice or similar milk substitutes, or greater 
than 50% of vegetable or fruit juice by volume.
    Until August 1, 2009, and notwithstanding any other 
provisions of this Act, "food for human consumption that is to 
be consumed off the premises where it is sold" includes all 
food sold through a vending machine, except soft drinks and 
food products that are dispensed hot from a vending machine, 
regardless of the location of the vending machine. Beginning 
August 1, 2009, and notwithstanding any other provisions of 
this Act, "food for human consumption that is to be consumed 
off the premises where it is sold" includes all food sold 
through a vending machine, except soft drinks, candy, and food 
products that are dispensed hot from a vending machine, 
regardless of the location of the vending machine. 
    Notwithstanding any other provisions of this Act, 
beginning September 1, 2009, "food for human consumption that 
is to be consumed off the premises where it is sold" does not 
include candy. For purposes of this Section, "candy" means a 
preparation of sugar, honey, or other natural or artificial 
sweeteners in combination with chocolate, fruits, nuts or 
other ingredients or flavorings in the form of bars, drops, or 
pieces. "Candy" does not include any preparation that contains 
flour or requires refrigeration. 
    Notwithstanding any other provisions of this Act, 
beginning September 1, 2009, "nonprescription medicines and 
drugs" does not include grooming and hygiene products. For 
purposes of this Section, "grooming and hygiene products" 
includes, but is not limited to, soaps and cleaning solutions, 
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan 
lotions and screens, unless those products are available by 
prescription only, regardless of whether the products meet the 
definition of "over-the-counter-drugs". For the purposes of 
this paragraph, "over-the-counter-drug" means a drug for human 
use that contains a label that identifies the product as a drug 
as required by 21 CFR 201.66. The "over-the-counter-drug" 
label includes: 
        (A) a "Drug Facts" panel; or
        (B) a statement of the "active ingredient(s)" with a 
    list of those ingredients contained in the compound, 
    substance or preparation.
    Beginning on January 1, 2014 (the effective date of Public 
Act 98-122), "prescription and nonprescription medicines and 
drugs" includes medical cannabis purchased from a registered 
dispensing organization under the Compassionate Use of Medical 
Cannabis Program Act. 
    As used in this Section, "adult use cannabis" means 
cannabis subject to tax under the Cannabis Cultivation 
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law 
and does not include cannabis subject to tax under the 
Compassionate Use of Medical Cannabis Program Act. 
(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 
102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700, 
Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23; 
103-154, eff. 6-30-23.)
 
    Section 75-20. The Retailers' Occupation Tax Act is 
amended by changing the title of the Act, by changing Sections 
1, 2, 2-5, 2-10, 2-12, 2a, 2c, and 3, and by adding Section 
1.05 as follows:
 
    (35 ILCS 120/Act title)
    An Act in relation to a tax upon persons engaged in the 
business of selling, including leasing, tangible personal 
property.
 
    (35 ILCS 120/1)  (from Ch. 120, par. 440)
    Sec. 1. Definitions. "Sale at retail" means any transfer 
of the ownership of, the or title to, the possession or control 
of, the right to possess or control, or a license to use 
tangible personal property to a purchaser, for the purpose of 
use or consumption, and not for the purpose of resale in any 
form as tangible personal property to the extent not first 
subjected to a use for which it was purchased, for a valuable 
consideration: Provided that the property purchased is deemed 
to be purchased for the purpose of resale, despite first being 
used, to the extent to which it is resold as an ingredient of 
an intentionally produced product or byproduct of 
manufacturing. For this purpose, slag produced as an incident 
to manufacturing pig iron or steel and sold is considered to be 
an intentionally produced byproduct of manufacturing. 
Transactions whereby the possession of the property is 
transferred but the seller retains the title as security for 
payment of the selling price shall be deemed to be sales.
    "Sale at retail" shall be construed to include any 
transfer of the ownership of, the or title to, the possession 
or control of, the right to possess or control, or a license to 
use tangible personal property to a purchaser, for use or 
consumption by any other person to whom such purchaser may 
transfer the tangible personal property without a valuable 
consideration, and to include any transfer, whether made for 
or without a valuable consideration, for resale in any form as 
tangible personal property unless made in compliance with 
Section 2c of this Act.
    Sales of tangible personal property, which property, to 
the extent not first subjected to a use for which it was 
purchased, as an ingredient or constituent, goes into and 
forms a part of tangible personal property subsequently the 
subject of a "Sale at retail", are not sales at retail as 
defined in this Act: Provided that the property purchased is 
deemed to be purchased for the purpose of resale, despite 
first being used, to the extent to which it is resold as an 
ingredient of an intentionally produced product or byproduct 
of manufacturing.
    "Sale at retail" shall be construed to include any 
Illinois florist's sales transaction in which the purchase 
order is received in Illinois by a florist and the sale is for 
use or consumption, but the Illinois florist has a florist in 
another state deliver the property to the purchaser or the 
purchaser's donee in such other state.
    Nonreusable tangible personal property that is used by 
persons engaged in the business of operating a restaurant, 
cafeteria, or drive-in is a sale for resale when it is 
transferred to customers in the ordinary course of business as 
part of the sale of food or beverages and is used to deliver, 
package, or consume food or beverages, regardless of where 
consumption of the food or beverages occurs. Examples of those 
items include, but are not limited to nonreusable, paper and 
plastic cups, plates, baskets, boxes, sleeves, buckets or 
other containers, utensils, straws, placemats, napkins, doggie 
bags, and wrapping or packaging materials that are transferred 
to customers as part of the sale of food or beverages in the 
ordinary course of business.
    The purchase, employment and transfer of such tangible 
personal property as newsprint and ink for the primary purpose 
of conveying news (with or without other information) is not a 
purchase, use or sale of tangible personal property.
    A person whose activities are organized and conducted 
primarily as a not-for-profit service enterprise, and who 
engages in selling tangible personal property at retail 
(whether to the public or merely to members and their guests) 
is engaged in the business of selling tangible personal 
property at retail with respect to such transactions, 
excepting only a person organized and operated exclusively for 
charitable, religious or educational purposes either (1), to 
the extent of sales by such person to its members, students, 
patients or inmates of tangible personal property to be used 
primarily for the purposes of such person, or (2), to the 
extent of sales by such person of tangible personal property 
which is not sold or offered for sale by persons organized for 
profit. The selling of school books and school supplies by 
schools at retail to students is not "primarily for the 
purposes of" the school which does such selling. The 
provisions of this paragraph shall not apply to nor subject to 
taxation occasional dinners, socials or similar activities of 
a person organized and operated exclusively for charitable, 
religious or educational purposes, whether or not such 
activities are open to the public.
    A person who is the recipient of a grant or contract under 
Title VII of the Older Americans Act of 1965 (P.L. 92-258) and 
serves meals to participants in the federal Nutrition Program 
for the Elderly in return for contributions established in 
amount by the individual participant pursuant to a schedule of 
suggested fees as provided for in the federal Act is not 
engaged in the business of selling tangible personal property 
at retail with respect to such transactions.
    "Lease" means a transfer of the possession or control of, 
the right to possess or control, or a license to use, but not 
title to, tangible personal property for a fixed or 
indeterminate term for consideration, regardless of the name 
by which the transaction is called. "Lease" does not include a 
lease entered into merely as a security agreement that does 
not involve a transfer of possession or control from the 
lessor to the lessee. 
    On and after January 1, 2025, the term "sale", when used in 
this Act, includes a lease. 
    "Purchaser" means anyone who, through a sale at retail, 
acquires the ownership of, the or title to, the possession or 
control of, the right to possess or control, or a license to 
use tangible personal property for a valuable consideration.
    "Reseller of motor fuel" means any person engaged in the 
business of selling or delivering or transferring title of 
motor fuel to another person other than for use or 
consumption. No person shall act as a reseller of motor fuel 
within this State without first being registered as a reseller 
pursuant to Section 2c or a retailer pursuant to Section 2a.
    "Selling price" or the "amount of sale" means the 
consideration for a sale valued in money whether received in 
money or otherwise, including cash, credits, property, other 
than as hereinafter provided, and services, but, prior to 
January 1, 2020 and beginning again on January 1, 2022, not 
including the value of or credit given for traded-in tangible 
personal property where the item that is traded-in is of like 
kind and character as that which is being sold; beginning 
January 1, 2020 and until January 1, 2022, "selling price" 
includes the portion of the value of or credit given for 
traded-in motor vehicles of the First Division as defined in 
Section 1-146 of the Illinois Vehicle Code of like kind and 
character as that which is being sold that exceeds $10,000. 
"Selling price" shall be determined without any deduction on 
account of the cost of the property sold, the cost of materials 
used, labor or service cost or any other expense whatsoever, 
but does not include charges that are added to prices by 
sellers on account of the seller's tax liability under this 
Act, or on account of the seller's duty to collect, from the 
purchaser, the tax that is imposed by the Use Tax Act, or, 
except as otherwise provided with respect to any cigarette tax 
imposed by a home rule unit, on account of the seller's tax 
liability under any local occupation tax administered by the 
Department, or, except as otherwise provided with respect to 
any cigarette tax imposed by a home rule unit on account of the 
seller's duty to collect, from the purchasers, the tax that is 
imposed under any local use tax administered by the 
Department. Effective December 1, 1985, "selling price" shall 
include charges that are added to prices by sellers on account 
of the seller's tax liability under the Cigarette Tax Act, on 
account of the sellers' duty to collect, from the purchaser, 
the tax imposed under the Cigarette Use Tax Act, and on account 
of the seller's duty to collect, from the purchaser, any 
cigarette tax imposed by a home rule unit.
    The provisions of this paragraph, which provides only for 
an alternative meaning of "selling price" with respect to the 
sale of certain motor vehicles incident to the contemporaneous 
lease of those motor vehicles, continue in effect and are not 
changed by the tax on leases implemented by this amendatory 
Act of the 103rd General Assembly. Notwithstanding any law to 
the contrary, for any motor vehicle, as defined in Section 
1-146 of the Vehicle Code, that is sold on or after January 1, 
2015 for the purpose of leasing the vehicle for a defined 
period that is longer than one year and (1) is a motor vehicle 
of the second division that: (A) is a self-contained motor 
vehicle designed or permanently converted to provide living 
quarters for recreational, camping, or travel use, with direct 
walk through access to the living quarters from the driver's 
seat; (B) is of the van configuration designed for the 
transportation of not less than 7 nor more than 16 passengers; 
or (C) has a gross vehicle weight rating of 8,000 pounds or 
less or (2) is a motor vehicle of the first division, "selling 
price" or "amount of sale" means the consideration received by 
the lessor pursuant to the lease contract, including amounts 
due at lease signing and all monthly or other regular payments 
charged over the term of the lease. Also included in the 
selling price is any amount received by the lessor from the 
lessee for the leased vehicle that is not calculated at the 
time the lease is executed, including, but not limited to, 
excess mileage charges and charges for excess wear and tear. 
For sales that occur in Illinois, with respect to any amount 
received by the lessor from the lessee for the leased vehicle 
that is not calculated at the time the lease is executed, the 
lessor who purchased the motor vehicle does not incur the tax 
imposed by the Use Tax Act on those amounts, and the retailer 
who makes the retail sale of the motor vehicle to the lessor is 
not required to collect the tax imposed by the Use Tax Act or 
to pay the tax imposed by this Act on those amounts. However, 
the lessor who purchased the motor vehicle assumes the 
liability for reporting and paying the tax on those amounts 
directly to the Department in the same form (Illinois 
Retailers' Occupation Tax, and local retailers' occupation 
taxes, if applicable) in which the retailer would have 
reported and paid such tax if the retailer had accounted for 
the tax to the Department. For amounts received by the lessor 
from the lessee that are not calculated at the time the lease 
is executed, the lessor must file the return and pay the tax to 
the Department by the due date otherwise required by this Act 
for returns other than transaction returns. If the retailer is 
entitled under this Act to a discount for collecting and 
remitting the tax imposed under this Act to the Department 
with respect to the sale of the motor vehicle to the lessor, 
then the right to the discount provided in this Act shall be 
transferred to the lessor with respect to the tax paid by the 
lessor for any amount received by the lessor from the lessee 
for the leased vehicle that is not calculated at the time the 
lease is executed; provided that the discount is only allowed 
if the return is timely filed and for amounts timely paid. The 
"selling price" of a motor vehicle that is sold on or after 
January 1, 2015 for the purpose of leasing for a defined period 
of longer than one year shall not be reduced by the value of or 
credit given for traded-in tangible personal property owned by 
the lessor, nor shall it be reduced by the value of or credit 
given for traded-in tangible personal property owned by the 
lessee, regardless of whether the trade-in value thereof is 
assigned by the lessee to the lessor. In the case of a motor 
vehicle that is sold for the purpose of leasing for a defined 
period of longer than one year, the sale occurs at the time of 
the delivery of the vehicle, regardless of the due date of any 
lease payments. A lessor who incurs a Retailers' Occupation 
Tax liability on the sale of a motor vehicle coming off lease 
may not take a credit against that liability for the Use Tax 
the lessor paid upon the purchase of the motor vehicle (or for 
any tax the lessor paid with respect to any amount received by 
the lessor from the lessee for the leased vehicle that was not 
calculated at the time the lease was executed) if the selling 
price of the motor vehicle at the time of purchase was 
calculated using the definition of "selling price" as defined 
in this paragraph. Notwithstanding any other provision of this 
Act to the contrary, lessors shall file all returns and make 
all payments required under this paragraph to the Department 
by electronic means in the manner and form as required by the 
Department. This paragraph does not apply to leases of motor 
vehicles for which, at the time the lease is entered into, the 
term of the lease is not a defined period, including leases 
with a defined initial period with the option to continue the 
lease on a month-to-month or other basis beyond the initial 
defined period. 
    The phrase "like kind and character" shall be liberally 
construed (including but not limited to any form of motor 
vehicle for any form of motor vehicle, or any kind of farm or 
agricultural implement for any other kind of farm or 
agricultural implement), while not including a kind of item 
which, if sold at retail by that retailer, would be exempt from 
retailers' occupation tax and use tax as an isolated or 
occasional sale.
    "Gross receipts" from the sales of tangible personal 
property at retail means the total selling price or the amount 
of such sales, as hereinbefore defined. In the case of charge 
and time sales, the amount thereof shall be included only as 
and when payments are received by the seller. In the case of 
leases, except as otherwise provided in this Act, the amount 
thereof shall be included only as and when gross receipts are 
received by the lessor. Receipts or other consideration 
derived by a seller from the sale, transfer or assignment of 
accounts receivable to a wholly owned subsidiary will not be 
deemed payments prior to the time the purchaser makes payment 
on such accounts.
    "Department" means the Department of Revenue.
    "Person" means any natural individual, firm, partnership, 
association, joint stock company, joint adventure, public or 
private corporation, limited liability company, or a receiver, 
executor, trustee, guardian or other representative appointed 
by order of any court.
    The isolated or occasional sale of tangible personal 
property at retail by a person who does not hold himself out as 
being engaged (or who does not habitually engage) in selling 
such tangible personal property at retail, or a sale through a 
bulk vending machine, does not constitute engaging in a 
business of selling such tangible personal property at retail 
within the meaning of this Act; provided that any person who is 
engaged in a business which is not subject to the tax imposed 
by this Act because of involving the sale of or a contract to 
sell real estate or a construction contract to improve real 
estate or a construction contract to engineer, install, and 
maintain an integrated system of products, but who, in the 
course of conducting such business, transfers tangible 
personal property to users or consumers in the finished form 
in which it was purchased, and which does not become real 
estate or was not engineered and installed, under any 
provision of a construction contract or real estate sale or 
real estate sales agreement entered into with some other 
person arising out of or because of such nontaxable business, 
is engaged in the business of selling tangible personal 
property at retail to the extent of the value of the tangible 
personal property so transferred. If, in such a transaction, a 
separate charge is made for the tangible personal property so 
transferred, the value of such property, for the purpose of 
this Act, shall be the amount so separately charged, but not 
less than the cost of such property to the transferor; if no 
separate charge is made, the value of such property, for the 
purposes of this Act, is the cost to the transferor of such 
tangible personal property. Construction contracts for the 
improvement of real estate consisting of engineering, 
installation, and maintenance of voice, data, video, security, 
and all telecommunication systems do not constitute engaging 
in a business of selling tangible personal property at retail 
within the meaning of this Act if they are sold at one 
specified contract price.
    A person who holds himself or herself out as being engaged 
(or who habitually engages) in selling tangible personal 
property at retail is a person engaged in the business of 
selling tangible personal property at retail hereunder with 
respect to such sales (and not primarily in a service 
occupation) notwithstanding the fact that such person designs 
and produces such tangible personal property on special order 
for the purchaser and in such a way as to render the property 
of value only to such purchaser, if such tangible personal 
property so produced on special order serves substantially the 
same function as stock or standard items of tangible personal 
property that are sold at retail.
    Persons who engage in the business of transferring 
tangible personal property upon the redemption of trading 
stamps are engaged in the business of selling such property at 
retail and shall be liable for and shall pay the tax imposed by 
this Act on the basis of the retail value of the property 
transferred upon redemption of such stamps.
    "Bulk vending machine" means a vending machine, containing 
unsorted confections, nuts, toys, or other items designed 
primarily to be used or played with by children which, when a 
coin or coins of a denomination not larger than $0.50 are 
inserted, are dispensed in equal portions, at random and 
without selection by the customer.
    "Remote retailer" means a retailer that does not maintain 
within this State, directly or by a subsidiary, an office, 
distribution house, sales house, warehouse or other place of 
business, or any agent or other representative operating 
within this State under the authority of the retailer or its 
subsidiary, irrespective of whether such place of business or 
agent is located here permanently or temporarily or whether 
such retailer or subsidiary is licensed to do business in this 
State. 
    "Marketplace" means a physical or electronic place, forum, 
platform, application, or other method by which a marketplace 
seller sells or offers to sell items. 
    "Marketplace facilitator" means a person who, pursuant to 
an agreement with an unrelated third-party marketplace seller, 
directly or indirectly through one or more affiliates 
facilitates a retail sale by an unrelated third party 
marketplace seller by: 
        (1) listing or advertising for sale by the marketplace 
    seller in a marketplace, tangible personal property that 
    is subject to tax under this Act; and 
        (2) either directly or indirectly, through agreements 
    or arrangements with third parties, collecting payment 
    from the customer and transmitting that payment to the 
    marketplace seller regardless of whether the marketplace 
    facilitator receives compensation or other consideration 
    in exchange for its services. 
    A person who provides advertising services, including 
listing products for sale, is not considered a marketplace 
facilitator, so long as the advertising service platform or 
forum does not engage, directly or indirectly through one or 
more affiliated persons, in the activities described in 
paragraph (2) of this definition of "marketplace facilitator". 
    "Marketplace facilitator" does not include any person 
licensed under the Auction License Act. This exemption does 
not apply to any person who is an Internet auction listing 
service, as defined by the Auction License Act. 
    "Marketplace seller" means a person that makes sales 
through a marketplace operated by an unrelated third party 
marketplace facilitator. 
(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20; 
102-353, eff. 1-1-22; 102-634, eff. 8-27-21; 102-813, eff. 
5-13-22.)
 
    (35 ILCS 120/1.05 new)
    Sec. 1.05. Legislative intent; leases. It is the intent of 
the General Assembly in enacting this amendatory Act of the 
103rd General Assembly to apply the tax imposed under this 
Act, except as otherwise provided in this Act, to persons 
engaged in the business of leasing at retail tangible personal 
property, other than 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, leased at retail from a retailer, for 
leases in effect, entered into, or renewed on or after January 
1, 2025.
 
    (35 ILCS 120/2)  (from Ch. 120, par. 441)
    Sec. 2. Tax imposed.  
    (a) A tax is imposed upon persons engaged in the business 
of selling at retail, which, on and after January 1, 2025, 
includes leasing, tangible personal property, 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 public 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. 
    The imposition of the tax under this Act on persons 
engaged in the business of leasing tangible personal property 
applies to leases 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 must remit, 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). 
    Sales 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. 
    (b) Beginning on January 1, 2021, a remote retailer is 
engaged in the occupation of selling at retail in Illinois for 
purposes of this Act, if: 
        (1) the cumulative gross receipts from sales of 
    tangible personal property to purchasers in Illinois are 
    $100,000 or more; or 
        (2) the retailer enters into 200 or more separate 
    transactions for the sale of tangible personal property to 
    purchasers in Illinois. 
    Remote retailers that meet or exceed the threshold in 
either paragraph (1) or (2) above shall be liable for all 
applicable State retailers' and locally imposed retailers' 
occupation taxes administered by the Department on all retail 
sales to Illinois purchasers. 
    The remote retailer shall determine on a quarterly basis, 
ending on the last day of March, June, September, and 
December, whether he or she meets the criteria of either 
paragraph (1) or (2) of this subsection for the preceding 
12-month period. If the retailer meets the criteria of either 
paragraph (1) or (2) for a 12-month period, he or she is 
considered a retailer maintaining a place of business in this 
State and is required to collect and remit the tax imposed 
under this Act and all retailers' occupation tax imposed by 
local taxing jurisdictions in Illinois, provided such local 
taxes are administered by the Department, and to file all 
applicable returns for one year. At the end of that one-year 
period, the retailer shall determine whether the retailer met 
the criteria of either paragraph (1) or (2) for the preceding 
12-month period. If the retailer met the criteria in either 
paragraph (1) or (2) for the preceding 12-month period, he or 
she is considered a retailer maintaining a place of business 
in this State and is required to collect and remit all 
applicable State and local retailers' occupation taxes and 
file returns for the subsequent year. If, at the end of a 
one-year period, a retailer that was required to collect and 
remit the tax imposed under this Act determines that he or she 
did not meet the criteria in either paragraph (1) or (2) during 
the preceding 12-month period, then the retailer shall 
subsequently determine on a quarterly basis, ending on the 
last day of March, June, September, and December, whether he 
or she meets the criteria of either paragraph (1) or (2) for 
the preceding 12-month period. 
    (b-5) For the purposes of this Section, neither the gross 
receipts from nor the number of separate transactions for 
sales of tangible personal property to purchasers in Illinois 
that a remote retailer makes through a marketplace facilitator 
shall be included for the purposes of determining whether he 
or she has met the thresholds of subsection (b) of this Section 
so long as the remote retailer has received certification from 
the marketplace facilitator that the marketplace facilitator 
is legally responsible for payment of tax on such sales. 
    (b-10) A remote retailer required to collect taxes imposed 
under the Use Tax Act on retail sales made to Illinois 
purchasers shall be liable to the Department for such taxes, 
except when the remote retailer is relieved of the duty to 
remit such taxes by virtue of having paid to the Department 
taxes imposed by this Act in accordance with this Section upon 
his or her gross receipts from such sales. 
    (c) Marketplace facilitators engaged in the business of 
selling at retail tangible personal property in Illinois. 
Beginning January 1, 2021, a marketplace facilitator is 
engaged in the occupation of selling at retail tangible 
personal property in Illinois for purposes of this Act if, 
during the previous 12-month period: 
        (1) the cumulative gross receipts from sales of 
    tangible personal property on its own behalf or on behalf 
    of marketplace sellers to purchasers in Illinois equals 
    $100,000 or more; or 
        (2) the marketplace facilitator enters into 200 or 
    more separate transactions on its own behalf or on behalf 
    of marketplace sellers for the sale of tangible personal 
    property to purchasers in Illinois, regardless of whether 
    the marketplace facilitator or marketplace sellers for 
    whom such sales are facilitated are registered as 
    retailers in this State. 
    A marketplace facilitator who meets either paragraph (1) 
or (2) of this subsection is required to remit the applicable 
State retailers' occupation taxes under this Act and local 
retailers' occupation taxes administered by the Department on 
all taxable sales of tangible personal property made by the 
marketplace facilitator or facilitated for marketplace sellers 
to customers in this State. A marketplace facilitator selling 
or facilitating the sale of tangible personal property to 
customers in this State is subject to all applicable 
procedures and requirements of this Act. 
    The marketplace facilitator shall determine on a quarterly 
basis, ending on the last day of March, June, September, and 
December, whether he or she meets the criteria of either 
paragraph (1) or (2) of this subsection for the preceding 
12-month period. If the marketplace facilitator meets the 
criteria of either paragraph (1) or (2) for a 12-month period, 
he or she is considered a retailer maintaining a place of 
business in this State and is required to remit the tax imposed 
under this Act and all retailers' occupation tax imposed by 
local taxing jurisdictions in Illinois, provided such local 
taxes are administered by the Department, and to file all 
applicable returns for one year. At the end of that one-year 
period, the marketplace facilitator shall determine whether it 
met the criteria of either paragraph (1) or (2) for the 
preceding 12-month period. If the marketplace facilitator met 
the criteria in either paragraph (1) or (2) for the preceding 
12-month period, it is considered a retailer maintaining a 
place of business in this State and is required to collect and 
remit all applicable State and local retailers' occupation 
taxes and file returns for the subsequent year. If at the end 
of a one-year period a marketplace facilitator that was 
required to collect and remit the tax imposed under this Act 
determines that he or she did not meet the criteria in either 
paragraph (1) or (2) during the preceding 12-month period, the 
marketplace facilitator shall subsequently determine on a 
quarterly basis, ending on the last day of March, June, 
September, and December, whether he or she meets the criteria 
of either paragraph (1) or (2) for the preceding 12-month 
period. 
    A marketplace facilitator shall be entitled to any 
credits, deductions, or adjustments to the sales price 
otherwise provided to the marketplace seller, in addition to 
any such adjustments provided directly to the marketplace 
facilitator. This Section pertains to, but is not limited to, 
adjustments such as discounts, coupons, and rebates. In 
addition, a marketplace facilitator shall be entitled to the 
retailers' discount provided in Section 3 of the Retailers' 
Occupation Tax Act on all marketplace sales, and the 
marketplace seller shall not include sales made through a 
marketplace facilitator when computing any retailers' discount 
on remaining sales. Marketplace facilitators shall report and 
remit the applicable State and local retailers' occupation 
taxes on sales facilitated for marketplace sellers separately 
from any sales or use tax collected on taxable retail sales 
made directly by the marketplace facilitator or its 
affiliates. 
    The marketplace facilitator is liable for the remittance 
of all applicable State retailers' occupation taxes under this 
Act and local retailers' occupation taxes administered by the 
Department on sales through the marketplace and is subject to 
audit on all such sales. The Department shall not audit 
marketplace sellers for their marketplace sales where a 
marketplace facilitator remitted the applicable State and 
local retailers' occupation taxes unless the marketplace 
facilitator seeks relief as a result of incorrect information 
provided to the marketplace facilitator by a marketplace 
seller as set forth in this Section. The marketplace 
facilitator shall not be held liable for tax on any sales made 
by a marketplace seller that take place outside of the 
marketplace and which are not a part of any agreement between a 
marketplace facilitator and a marketplace seller. In addition, 
marketplace facilitators shall not be held liable to State and 
local governments of Illinois for having charged and remitted 
an incorrect amount of State and local retailers' occupation 
tax if, at the time of the sale, the tax is computed based on 
erroneous data provided by the State in database files on tax 
rates, boundaries, or taxing jurisdictions or incorrect 
information provided to the marketplace facilitator by the 
marketplace seller. 
    (d) A marketplace facilitator shall: 
        (1) certify to each marketplace seller that the 
    marketplace facilitator assumes the rights and duties of a 
    retailer under this Act with respect to sales made by the 
    marketplace seller through the marketplace; and 
        (2) remit taxes imposed by this Act as required by 
    this Act for sales made through the marketplace. 
    (e) A marketplace seller shall retain books and records 
for all sales made through a marketplace in accordance with 
the requirements of this Act. 
    (f) A marketplace facilitator is subject to audit on all 
marketplace sales for which it is considered to be the 
retailer, but shall not be liable for tax or subject to audit 
on sales made by marketplace sellers outside of the 
marketplace. 
    (g) A marketplace facilitator required to collect taxes 
imposed under the Use Tax Act on marketplace sales made to 
Illinois purchasers shall be liable to the Department for such 
taxes, except when the marketplace facilitator is relieved of 
the duty to remit such taxes by virtue of having paid to the 
Department taxes imposed by this Act in accordance with this 
Section upon his or her gross receipts from such sales. 
    (h) Nothing in this Section shall allow the Department to 
collect retailers' occupation taxes from both the marketplace 
facilitator and marketplace seller on the same transaction. 
    (i) If, for any reason, the Department is prohibited from 
enforcing the marketplace facilitator's duty under this Act to 
remit taxes pursuant to this Section, the duty to remit such 
taxes remains with the marketplace seller. 
    (j) Nothing in this Section affects the obligation of any 
consumer to remit use tax for any taxable transaction for 
which a certified service provider acting on behalf of a 
remote retailer or a marketplace facilitator does not collect 
and remit the appropriate tax. 
    (k) Nothing in this Section shall allow the Department to 
collect the retailers' occupation tax from both the 
marketplace facilitator and the marketplace seller. 
(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
 
    (35 ILCS 120/2-5)
    Sec. 2-5. Exemptions. Gross receipts from proceeds from 
the sale, which, on and after January 1, 2025, includes the 
lease, of the following tangible personal property are exempt 
from the tax imposed by this Act:
        (1) Farm chemicals.
        (2) Farm machinery and equipment, both new and used, 
    including that manufactured on special order, certified by 
    the purchaser to be used primarily for production 
    agriculture or State or federal agricultural programs, 
    including individual replacement parts for the machinery 
    and equipment, including machinery and equipment purchased 
    for lease, and including implements of husbandry defined 
    in Section 1-130 of the Illinois Vehicle Code, farm 
    machinery and agricultural chemical and fertilizer 
    spreaders, and nurse wagons required to be registered 
    under Section 3-809 of the Illinois Vehicle Code, but 
    excluding other motor vehicles required to be registered 
    under the Illinois Vehicle Code. Horticultural polyhouses 
    or hoop houses used for propagating, growing, or 
    overwintering plants shall be considered farm machinery 
    and equipment under this item (2). Agricultural chemical 
    tender tanks and dry boxes shall include units sold 
    separately from a motor vehicle required to be licensed 
    and units sold mounted on a motor vehicle required to be 
    licensed, if the selling price of the tender is separately 
    stated.
        Farm machinery and equipment shall include precision 
    farming equipment that is installed or purchased to be 
    installed on farm machinery and equipment including, but 
    not limited to, tractors, harvesters, sprayers, planters, 
    seeders, or spreaders. Precision farming equipment 
    includes, but is not limited to, soil testing sensors, 
    computers, monitors, software, global positioning and 
    mapping systems, and other such equipment.
        Farm machinery and equipment also includes computers, 
    sensors, software, and related equipment used primarily in 
    the computer-assisted operation of production agriculture 
    facilities, equipment, and activities such as, but not 
    limited to, the collection, monitoring, and correlation of 
    animal and crop data for the purpose of formulating animal 
    diets and agricultural chemicals. 
        Beginning on January 1, 2024, farm machinery and 
    equipment also includes electrical power generation 
    equipment used primarily for production agriculture. 
        This item (2) is exempt from the provisions of Section 
    2-70.
        (3) Until July 1, 2003, distillation machinery and 
    equipment, sold as a unit or kit, assembled or installed 
    by the retailer, certified by the user to be used only for 
    the production of ethyl alcohol that will be used for 
    consumption as motor fuel or as a component of motor fuel 
    for the personal use of the user, and not subject to sale 
    or resale.
        (4) Until July 1, 2003 and beginning again September 
    1, 2004 through August 30, 2014, graphic arts machinery 
    and equipment, including repair and replacement parts, 
    both new and used, and including that manufactured on 
    special order or purchased for lease, certified by the 
    purchaser to be used primarily for graphic arts 
    production. Equipment includes chemicals or chemicals 
    acting as catalysts but only if the chemicals or chemicals 
    acting as catalysts effect a direct and immediate change 
    upon a graphic arts product. Beginning on July 1, 2017, 
    graphic arts machinery and equipment is included in the 
    manufacturing and assembling machinery and equipment 
    exemption under paragraph (14).
        (5) A motor vehicle that is used for automobile 
    renting, as defined in the Automobile Renting Occupation 
    and Use Tax Act. This paragraph is exempt from the 
    provisions of Section 2-70.
        (6) Personal property sold by a teacher-sponsored 
    student organization affiliated with an elementary or 
    secondary school located in Illinois.
        (7) Until July 1, 2003, proceeds of that portion of 
    the selling price of a passenger car the sale of which is 
    subject to the Replacement Vehicle Tax.
        (8) Personal property sold to an Illinois county fair 
    association for use in conducting, operating, or promoting 
    the county fair.
        (9) Personal property sold to a not-for-profit arts or 
    cultural organization that establishes, by proof required 
    by the Department by rule, that it has received an 
    exemption under Section 501(c)(3) of the Internal Revenue 
    Code and that is organized and operated primarily for the 
    presentation or support of arts or cultural programming, 
    activities, or services. These organizations include, but 
    are not limited to, music and dramatic arts organizations 
    such as symphony orchestras and theatrical groups, arts 
    and cultural service organizations, local arts councils, 
    visual arts organizations, and media arts organizations. 
    On and after July 1, 2001 (the effective date of Public Act 
    92-35), however, an entity otherwise eligible for this 
    exemption shall not make tax-free purchases unless it has 
    an active identification number issued by the Department.
        (10) Personal property sold by a corporation, society, 
    association, foundation, institution, or organization, 
    other than a limited liability company, that is organized 
    and operated as a not-for-profit service enterprise for 
    the benefit of persons 65 years of age or older if the 
    personal property was not purchased by the enterprise for 
    the purpose of resale by the enterprise.
        (11) Except as otherwise provided in this Section, 
    personal property sold to a governmental body, to a 
    corporation, society, association, foundation, or 
    institution organized and operated exclusively for 
    charitable, religious, or educational purposes, or to a 
    not-for-profit corporation, society, association, 
    foundation, institution, or organization that has no 
    compensated officers or employees and that is organized 
    and operated primarily for the recreation of persons 55 
    years of age or older. A limited liability company may 
    qualify for the exemption under this paragraph only if the 
    limited liability company is organized and operated 
    exclusively for educational purposes. On and after July 1, 
    1987, however, no entity otherwise eligible for this 
    exemption shall make tax-free purchases unless it has an 
    active identification number issued by the Department.
        (12) (Blank).
        (12-5) On and after July 1, 2003 and through June 30, 
    2004, motor vehicles of the second division with a gross 
    vehicle weight in excess of 8,000 pounds that are subject 
    to the commercial distribution fee imposed under Section 
    3-815.1 of the Illinois Vehicle Code. Beginning on July 1, 
    2004 and through June 30, 2005, the use in this State of 
    motor vehicles of the second division: (i) with a gross 
    vehicle weight rating in excess of 8,000 pounds; (ii) that 
    are subject to the commercial distribution fee imposed 
    under Section 3-815.1 of the Illinois Vehicle Code; and 
    (iii) that are primarily used for commercial purposes. 
    Through June 30, 2005, this exemption applies to repair 
    and replacement parts added after the initial purchase of 
    such a motor vehicle if that motor vehicle is used in a 
    manner that would qualify for the rolling stock exemption 
    otherwise provided for in this Act. For purposes of this 
    paragraph, "used for commercial purposes" means the 
    transportation of persons or property in furtherance of 
    any commercial or industrial enterprise whether for-hire 
    or not. 
        (13) Proceeds from sales to owners or , lessors, 
    lessees, or shippers of tangible personal property that is 
    utilized by interstate carriers for hire for use as 
    rolling stock moving in interstate commerce and equipment 
    operated by a telecommunications provider, licensed as a 
    common carrier by the Federal Communications Commission, 
    which is permanently installed in or affixed to aircraft 
    moving in interstate commerce.
        (14) Machinery and equipment that will be used by the 
    purchaser, or a lessee of the purchaser, primarily in the 
    process of manufacturing or assembling tangible personal 
    property for wholesale or retail sale or lease, whether 
    the sale or lease is made directly by the manufacturer or 
    by some other person, whether the materials used in the 
    process are owned by the manufacturer or some other 
    person, or whether the sale or lease is made apart from or 
    as an incident to the seller's engaging in the service 
    occupation of producing machines, tools, dies, jigs, 
    patterns, gauges, or other similar items of no commercial 
    value on special order for a particular purchaser. The 
    exemption provided by this paragraph (14) does not include 
    machinery and equipment used in (i) the generation of 
    electricity for wholesale or retail sale; (ii) the 
    generation or treatment of natural or artificial gas for 
    wholesale or retail sale that is delivered to customers 
    through pipes, pipelines, or mains; or (iii) the treatment 
    of water for wholesale or retail sale that is delivered to 
    customers through pipes, pipelines, or mains. The 
    provisions of Public Act 98-583 are declaratory of 
    existing law as to the meaning and scope of this 
    exemption. Beginning on July 1, 2017, the exemption 
    provided by this paragraph (14) includes, but is not 
    limited to, graphic arts machinery and equipment, as 
    defined in paragraph (4) of this Section.
        (15) Proceeds of mandatory service charges separately 
    stated on customers' bills for purchase and consumption of 
    food and beverages, to the extent that the proceeds of the 
    service charge are in fact turned over as tips or as a 
    substitute for tips to the employees who participate 
    directly in preparing, serving, hosting or cleaning up the 
    food or beverage function with respect to which the 
    service charge is imposed. 
        (16) Tangible personal property sold to a purchaser if 
    the purchaser is exempt from use tax by operation of 
    federal law. This paragraph is exempt from the provisions 
    of Section 2-70. 
        (17) Tangible personal property sold to a common 
    carrier by rail or motor that receives the physical 
    possession of the property in Illinois and that transports 
    the property, or shares with another common carrier in the 
    transportation of the property, out of Illinois on a 
    standard uniform bill of lading showing the seller of the 
    property as the shipper or consignor of the property to a 
    destination outside Illinois, for use outside Illinois.
        (18) Legal tender, currency, medallions, or gold or 
    silver coinage issued by the State of Illinois, the 
    government of the United States of America, or the 
    government of any foreign country, and bullion.
        (19) Until July 1, 2003, oil field exploration, 
    drilling, and production equipment, including (i) rigs and 
    parts of rigs, rotary rigs, cable tool rigs, and workover 
    rigs, (ii) pipe and tubular goods, including casing and 
    drill strings, (iii) pumps and pump-jack units, (iv) 
    storage tanks and flow lines, (v) any individual 
    replacement part for oil field exploration, drilling, and 
    production equipment, and (vi) machinery and equipment 
    purchased for lease; but excluding motor vehicles required 
    to be registered under the Illinois Vehicle Code.
        (20) Photoprocessing machinery and equipment, 
    including repair and replacement parts, both new and used, 
    including that manufactured on special order, certified by 
    the purchaser to be used primarily for photoprocessing, 
    and including photoprocessing machinery and equipment 
    purchased for lease.
        (21) Until July 1, 2028, coal and aggregate 
    exploration, mining, off-highway hauling, processing, 
    maintenance, and reclamation equipment, including 
    replacement parts and equipment, and including equipment 
    purchased for lease, but excluding motor vehicles required 
    to be registered under the Illinois Vehicle Code. The 
    changes made to this Section by Public Act 97-767 apply on 
    and after July 1, 2003, but no claim for credit or refund 
    is allowed on or after August 16, 2013 (the effective date 
    of Public Act 98-456) for such taxes paid during the 
    period beginning July 1, 2003 and ending on August 16, 
    2013 (the effective date of Public Act 98-456).
        (22) Until June 30, 2013, fuel and petroleum products 
    sold to or used by an air carrier, certified by the carrier 
    to be used for consumption, shipment, or storage in the 
    conduct of its business as an air common carrier, for a 
    flight destined for or returning from a location or 
    locations outside the United States without regard to 
    previous or subsequent domestic stopovers.
        Beginning July 1, 2013, fuel and petroleum products 
    sold to or used by an air carrier, certified by the carrier 
    to be used for consumption, shipment, or storage in the 
    conduct of its business as an air common carrier, for a 
    flight that (i) is engaged in foreign trade or is engaged 
    in trade between the United States and any of its 
    possessions and (ii) transports at least one individual or 
    package for hire from the city of origination to the city 
    of final destination on the same aircraft, without regard 
    to a change in the flight number of that aircraft. 
        (23) A transaction in which the purchase order is 
    received by a florist who is located outside Illinois, but 
    who has a florist located in Illinois deliver the property 
    to the purchaser or the purchaser's donee in Illinois.
        (24) Fuel consumed or used in the operation of ships, 
    barges, or vessels that are used primarily in or for the 
    transportation of property or the conveyance of persons 
    for hire on rivers bordering on this State if the fuel is 
    delivered by the seller to the purchaser's barge, ship, or 
    vessel while it is afloat upon that bordering river.
        (25) Except as provided in item (25-5) of this 
    Section, a motor vehicle sold in this State to a 
    nonresident even though the motor vehicle is delivered to 
    the nonresident in this State, if the motor vehicle is not 
    to be titled in this State, and if a drive-away permit is 
    issued to the motor vehicle as provided in Section 3-603 
    of the Illinois Vehicle Code or if the nonresident 
    purchaser has vehicle registration plates to transfer to 
    the motor vehicle upon returning to his or her home state. 
    The issuance of the drive-away permit or having the 
    out-of-state registration plates to be transferred is 
    prima facie evidence that the motor vehicle will not be 
    titled in this State.
        (25-5) The exemption under item (25) does not apply if 
    the state in which the motor vehicle will be titled does 
    not allow a reciprocal exemption for a motor vehicle sold 
    and delivered in that state to an Illinois resident but 
    titled in Illinois. The tax collected under this Act on 
    the sale of a motor vehicle in this State to a resident of 
    another state that does not allow a reciprocal exemption 
    shall be imposed at a rate equal to the state's rate of tax 
    on taxable property in the state in which the purchaser is 
    a resident, except that the tax shall not exceed the tax 
    that would otherwise be imposed under this Act. At the 
    time of the sale, the purchaser shall execute a statement, 
    signed under penalty of perjury, of his or her intent to 
    title the vehicle in the state in which the purchaser is a 
    resident within 30 days after the sale and of the fact of 
    the payment to the State of Illinois of tax in an amount 
    equivalent to the state's rate of tax on taxable property 
    in his or her state of residence and shall submit the 
    statement to the appropriate tax collection agency in his 
    or her state of residence. In addition, the retailer must 
    retain a signed copy of the statement in his or her 
    records. Nothing in this item shall be construed to 
    require the removal of the vehicle from this state 
    following the filing of an intent to title the vehicle in 
    the purchaser's state of residence if the purchaser titles 
    the vehicle in his or her state of residence within 30 days 
    after the date of sale. The tax collected under this Act in 
    accordance with this item (25-5) shall be proportionately 
    distributed as if the tax were collected at the 6.25% 
    general rate imposed under this Act. 
        (25-7) Beginning on July 1, 2007, no tax is imposed 
    under this Act on the sale of an aircraft, as defined in 
    Section 3 of the Illinois Aeronautics Act, if all of the 
    following conditions are met:
            (1) the aircraft leaves this State within 15 days 
        after the later of either the issuance of the final 
        billing for the sale of the aircraft, or the 
        authorized approval for return to service, completion 
        of the maintenance record entry, and completion of the 
        test flight and ground test for inspection, as 
        required by 14 CFR 91.407;
            (2) the aircraft is not based or registered in 
        this State after the sale of the aircraft; and
            (3) the seller retains in his or her books and 
        records and provides to the Department a signed and 
        dated certification from the purchaser, on a form 
        prescribed by the Department, certifying that the 
        requirements of this item (25-7) are met. The 
        certificate must also include the name and address of 
        the purchaser, the address of the location where the 
        aircraft is to be titled or registered, the address of 
        the primary physical location of the aircraft, and 
        other information that the Department may reasonably 
        require.
        For purposes of this item (25-7):
        "Based in this State" means hangared, stored, or 
    otherwise used, excluding post-sale customizations as 
    defined in this Section, for 10 or more days in each 
    12-month period immediately following the date of the sale 
    of the aircraft.
        "Registered in this State" means an aircraft 
    registered with the Department of Transportation, 
    Aeronautics Division, or titled or registered with the 
    Federal Aviation Administration to an address located in 
    this State.
        This paragraph (25-7) is exempt from the provisions of 
    Section 2-70. 
        (26) Semen used for artificial insemination of 
    livestock for direct agricultural production.
        (27) Horses, or interests in horses, registered with 
    and meeting the requirements of any of the Arabian Horse 
    Club Registry of America, Appaloosa Horse Club, American 
    Quarter Horse Association, United States Trotting 
    Association, or Jockey Club, as appropriate, used for 
    purposes of breeding or racing for prizes. This item (27) 
    is exempt from the provisions of Section 2-70, and the 
    exemption provided for under this item (27) applies for 
    all periods beginning May 30, 1995, but no claim for 
    credit or refund is allowed on or after January 1, 2008 
    (the effective date of Public Act 95-88) for such taxes 
    paid during the period beginning May 30, 2000 and ending 
    on January 1, 2008 (the effective date of Public Act 
    95-88).
        (28) Computers and communications equipment utilized 
    for any hospital purpose and equipment used in the 
    diagnosis, analysis, or treatment of hospital patients 
    sold to a lessor who leases the equipment, under a lease of 
    one year or longer executed or in effect at the time of the 
    purchase, to a hospital that has been issued an active tax 
    exemption identification number by the Department under 
    Section 1g of this Act.
        (29) Personal property sold to a lessor who leases the 
    property, under a lease of one year or longer executed or 
    in effect at the time of the purchase, to a governmental 
    body that has been issued an active tax exemption 
    identification number by the Department under Section 1g 
    of this Act.
        (30) Beginning with taxable years ending on or after 
    December 31, 1995 and ending with taxable years ending on 
    or before December 31, 2004, personal property that is 
    donated for disaster relief to be used in a State or 
    federally declared disaster area in Illinois or bordering 
    Illinois by a manufacturer or retailer that is registered 
    in this State to a corporation, society, association, 
    foundation, or institution that has been issued a sales 
    tax exemption identification number by the Department that 
    assists victims of the disaster who reside within the 
    declared disaster area.
        (31) Beginning with taxable years ending on or after 
    December 31, 1995 and ending with taxable years ending on 
    or before December 31, 2004, personal property that is 
    used in the performance of infrastructure repairs in this 
    State, including, but not limited to, municipal roads and 
    streets, access roads, bridges, sidewalks, waste disposal 
    systems, water and sewer line extensions, water 
    distribution and purification facilities, storm water 
    drainage and retention facilities, and sewage treatment 
    facilities, resulting from a State or federally declared 
    disaster in Illinois or bordering Illinois when such 
    repairs are initiated on facilities located in the 
    declared disaster area within 6 months after the disaster.
        (32) Beginning July 1, 1999, game or game birds sold 
    at a "game breeding and hunting preserve area" as that 
    term is used in the Wildlife Code. This paragraph is 
    exempt from the provisions of Section 2-70.
        (33) A motor vehicle, as that term is defined in 
    Section 1-146 of the Illinois Vehicle Code, that is 
    donated to a corporation, limited liability company, 
    society, association, foundation, or institution that is 
    determined by the Department to be organized and operated 
    exclusively for educational purposes. For purposes of this 
    exemption, "a corporation, limited liability company, 
    society, association, foundation, or institution organized 
    and operated exclusively for educational purposes" means 
    all tax-supported public schools, private schools that 
    offer systematic instruction in useful branches of 
    learning by methods common to public schools and that 
    compare favorably in their scope and intensity with the 
    course of study presented in tax-supported schools, and 
    vocational or technical schools or institutes organized 
    and operated exclusively to provide a course of study of 
    not less than 6 weeks duration and designed to prepare 
    individuals to follow a trade or to pursue a manual, 
    technical, mechanical, industrial, business, or commercial 
    occupation.
        (34) Beginning January 1, 2000, personal property, 
    including food, purchased through fundraising events for 
    the benefit of a public or private elementary or secondary 
    school, a group of those schools, or one or more school 
    districts if the events are sponsored by an entity 
    recognized by the school district that consists primarily 
    of volunteers and includes parents and teachers of the 
    school children. This paragraph does not apply to 
    fundraising events (i) for the benefit of private home 
    instruction or (ii) for which the fundraising entity 
    purchases the personal property sold at the events from 
    another individual or entity that sold the property for 
    the purpose of resale by the fundraising entity and that 
    profits from the sale to the fundraising entity. This 
    paragraph is exempt from the provisions of Section 2-70.
        (35) Beginning January 1, 2000 and through December 
    31, 2001, new or used automatic vending machines that 
    prepare and serve hot food and beverages, including 
    coffee, soup, and other items, and replacement parts for 
    these machines. Beginning January 1, 2002 and through June 
    30, 2003, machines and parts for machines used in 
    commercial, coin-operated amusement and vending business 
    if a use or occupation tax is paid on the gross receipts 
    derived from the use of the commercial, coin-operated 
    amusement and vending machines. This paragraph is exempt 
    from the provisions of Section 2-70.
        (35-5) Beginning August 23, 2001 and through June 30, 
    2016, food for human consumption that is to be consumed 
    off the premises where it is sold (other than alcoholic 
    beverages, soft drinks, and food that has been prepared 
    for immediate consumption) and prescription and 
    nonprescription medicines, drugs, medical appliances, and 
    insulin, urine testing materials, syringes, and needles 
    used by diabetics, for human use, when purchased for use 
    by a person receiving medical assistance under Article V 
    of the Illinois Public Aid Code who resides in a licensed 
    long-term care facility, as defined in the Nursing Home 
    Care Act, or a licensed facility as defined in the ID/DD 
    Community Care Act, the MC/DD Act, or the Specialized 
    Mental Health Rehabilitation Act of 2013.
        (36) Beginning August 2, 2001, computers and 
    communications equipment utilized for any hospital purpose 
    and equipment used in the diagnosis, analysis, or 
    treatment of hospital patients sold to a lessor who leases 
    the equipment, under a lease of one year or longer 
    executed or in effect at the time of the purchase, to a 
    hospital that has been issued an active tax exemption 
    identification number by the Department under Section 1g 
    of this Act. This paragraph is exempt from the provisions 
    of Section 2-70.
        (37) Beginning August 2, 2001, personal property sold 
    to a lessor who leases the property, under a lease of one 
    year or longer executed or in effect at the time of the 
    purchase, to a governmental body that has been issued an 
    active tax exemption identification number by the 
    Department under Section 1g of this Act. This paragraph is 
    exempt from the provisions of Section 2-70.
        (38) Beginning on January 1, 2002 and through June 30, 
    2016, tangible personal property purchased from an 
    Illinois retailer by a taxpayer engaged in centralized 
    purchasing activities in Illinois who will, upon receipt 
    of the property in Illinois, temporarily store the 
    property in Illinois (i) for the purpose of subsequently 
    transporting it outside this State for use or consumption 
    thereafter solely outside this State or (ii) for the 
    purpose of being processed, fabricated, or manufactured 
    into, attached to, or incorporated into other tangible 
    personal property to be transported outside this State and 
    thereafter used or consumed solely outside this State. The 
    Director of Revenue shall, pursuant to rules adopted in 
    accordance with the Illinois Administrative Procedure Act, 
    issue a permit to any taxpayer in good standing with the 
    Department who is eligible for the exemption under this 
    paragraph (38). The permit issued under this paragraph 
    (38) shall authorize the holder, to the extent and in the 
    manner specified in the rules adopted under this Act, to 
    purchase tangible personal property from a retailer exempt 
    from the taxes imposed by this Act. Taxpayers shall 
    maintain all necessary books and records to substantiate 
    the use and consumption of all such tangible personal 
    property outside of the State of Illinois.
        (39) Beginning January 1, 2008, tangible personal 
    property used in the construction or maintenance of a 
    community water supply, as defined under Section 3.145 of 
    the Environmental Protection Act, that is operated by a 
    not-for-profit corporation that holds a valid water supply 
    permit issued under Title IV of the Environmental 
    Protection Act. This paragraph is exempt from the 
    provisions of Section 2-70. 
        (40) Beginning January 1, 2010 and continuing through 
    December 31, 2029, materials, parts, equipment, 
    components, and furnishings incorporated into or upon an 
    aircraft as part of the modification, refurbishment, 
    completion, replacement, repair, or maintenance of the 
    aircraft. This exemption includes consumable supplies used 
    in the modification, refurbishment, completion, 
    replacement, repair, and maintenance of aircraft. However, 
    until January 1, 2024, this exemption excludes any 
    materials, parts, equipment, components, and consumable 
    supplies used in the modification, replacement, repair, 
    and maintenance of aircraft engines or power plants, 
    whether such engines or power plants are installed or 
    uninstalled upon any such aircraft. "Consumable supplies" 
    include, but are not limited to, adhesive, tape, 
    sandpaper, general purpose lubricants, cleaning solution, 
    latex gloves, and protective films. 
        Beginning January 1, 2010 and continuing through 
    December 31, 2023, this exemption applies only to the sale 
    of qualifying tangible personal property to persons who 
    modify, refurbish, complete, replace, or maintain an 
    aircraft and who (i) hold an Air Agency Certificate and 
    are empowered to operate an approved repair station by the 
    Federal Aviation Administration, (ii) have a Class IV 
    Rating, and (iii) conduct operations in accordance with 
    Part 145 of the Federal Aviation Regulations. The 
    exemption does not include aircraft operated by a 
    commercial air carrier providing scheduled passenger air 
    service pursuant to authority issued under Part 121 or 
    Part 129 of the Federal Aviation Regulations. From January 
    1, 2024 through December 31, 2029, this exemption applies 
    only to the use of qualifying tangible personal property 
    by: (A) persons who modify, refurbish, complete, repair, 
    replace, or maintain aircraft and who (i) hold an Air 
    Agency Certificate and are empowered to operate an 
    approved repair station by the Federal Aviation 
    Administration, (ii) have a Class IV Rating, and (iii) 
    conduct operations in accordance with Part 145 of the 
    Federal Aviation Regulations; and (B) persons who engage 
    in the modification, replacement, repair, and maintenance 
    of aircraft engines or power plants without regard to 
    whether or not those persons meet the qualifications of 
    item (A).
        The changes made to this paragraph (40) by Public Act 
    98-534 are declarative of existing law. It is the intent 
    of the General Assembly that the exemption under this 
    paragraph (40) applies continuously from January 1, 2010 
    through December 31, 2024; however, no claim for credit or 
    refund is allowed for taxes paid as a result of the 
    disallowance of this exemption on or after January 1, 2015 
    and prior to February 5, 2020 (the effective date of 
    Public Act 101-629).
        (41) Tangible personal property sold to a 
    public-facilities corporation, as described in Section 
    11-65-10 of the Illinois Municipal Code, for purposes of 
    constructing or furnishing a municipal convention hall, 
    but only if the legal title to the municipal convention 
    hall is transferred to the municipality without any 
    further consideration by or on behalf of the municipality 
    at the time of the completion of the municipal convention 
    hall or upon the retirement or redemption of any bonds or 
    other debt instruments issued by the public-facilities 
    corporation in connection with the development of the 
    municipal convention hall. This exemption includes 
    existing public-facilities corporations as provided in 
    Section 11-65-25 of the Illinois Municipal Code. This 
    paragraph is exempt from the provisions of Section 2-70. 
        (42) Beginning January 1, 2017 and through December 
    31, 2026, menstrual pads, tampons, and menstrual cups. 
        (43) Merchandise that is subject to the Rental 
    Purchase Agreement Occupation and Use Tax. The purchaser 
    must certify that the item is purchased to be rented 
    subject to a rental-purchase rental purchase agreement, as 
    defined in the Rental-Purchase Rental Purchase Agreement 
    Act, and provide proof of registration under the Rental 
    Purchase Agreement Occupation and Use Tax Act. This 
    paragraph is exempt from the provisions of Section 2-70.
        (44) Qualified tangible personal property used in the 
    construction or operation of a data center that has been 
    granted a certificate of exemption by the Department of 
    Commerce and Economic Opportunity, whether that tangible 
    personal property is purchased by the owner, operator, or 
    tenant of the data center or by a contractor or 
    subcontractor of the owner, operator, or tenant. Data 
    centers that would have qualified for a certificate of 
    exemption prior to January 1, 2020 had Public Act 101-31 
    been in effect, may apply for and obtain an exemption for 
    subsequent purchases of computer equipment or enabling 
    software purchased or leased to upgrade, supplement, or 
    replace computer equipment or enabling software purchased 
    or leased in the original investment that would have 
    qualified. 
        The Department of Commerce and Economic Opportunity 
    shall grant a certificate of exemption under this item 
    (44) to qualified data centers as defined by Section 
    605-1025 of the Department of Commerce and Economic 
    Opportunity Law of the Civil Administrative Code of 
    Illinois. 
        For the purposes of this item (44): 
            "Data center" means a building or a series of 
        buildings rehabilitated or constructed to house 
        working servers in one physical location or multiple 
        sites within the State of Illinois. 
            "Qualified tangible personal property" means: 
        electrical systems and equipment; climate control and 
        chilling equipment and systems; mechanical systems and 
        equipment; monitoring and secure systems; emergency 
        generators; hardware; computers; servers; data storage 
        devices; network connectivity equipment; racks; 
        cabinets; telecommunications cabling infrastructure; 
        raised floor systems; peripheral components or 
        systems; software; mechanical, electrical, or plumbing 
        systems; battery systems; cooling systems and towers; 
        temperature control systems; other cabling; and other 
        data center infrastructure equipment and systems 
        necessary to operate qualified tangible personal 
        property, including fixtures; and component parts of 
        any of the foregoing, including installation, 
        maintenance, repair, refurbishment, and replacement of 
        qualified tangible personal property to generate, 
        transform, transmit, distribute, or manage electricity 
        necessary to operate qualified tangible personal 
        property; and all other tangible personal property 
        that is essential to the operations of a computer data 
        center. The term "qualified tangible personal 
        property" also includes building materials physically 
        incorporated into the qualifying data center. To 
        document the exemption allowed under this Section, the 
        retailer must obtain from the purchaser a copy of the 
        certificate of eligibility issued by the Department of 
        Commerce and Economic Opportunity. 
        This item (44) is exempt from the provisions of 
    Section 2-70. 
        (45) Beginning January 1, 2020 and through December 
    31, 2020, sales of tangible personal property made by a 
    marketplace seller over a marketplace for which tax is due 
    under this Act but for which use tax has been collected and 
    remitted to the Department by a marketplace facilitator 
    under Section 2d of the Use Tax Act are exempt from tax 
    under this Act. A marketplace seller claiming this 
    exemption shall maintain books and records demonstrating 
    that the use tax on such sales has been collected and 
    remitted by a marketplace facilitator. Marketplace sellers 
    that have properly remitted tax under this Act on such 
    sales may file a claim for credit as provided in Section 6 
    of this Act. No claim is allowed, however, for such taxes 
    for which a credit or refund has been issued to the 
    marketplace facilitator under the Use Tax Act, or for 
    which the marketplace facilitator has filed a claim for 
    credit or refund under the Use Tax Act. 
        (46) Beginning July 1, 2022, breast pumps, breast pump 
    collection and storage supplies, and breast pump kits. 
    This item (46) is exempt from the provisions of Section 
    2-70. As used in this item (46): 
        "Breast pump" means an electrically controlled or 
    manually controlled pump device designed or marketed to be 
    used to express milk from a human breast during lactation, 
    including the pump device and any battery, AC adapter, or 
    other power supply unit that is used to power the pump 
    device and is packaged and sold with the pump device at the 
    time of sale. 
        "Breast pump collection and storage supplies" means 
    items of tangible personal property designed or marketed 
    to be used in conjunction with a breast pump to collect 
    milk expressed from a human breast and to store collected 
    milk until it is ready for consumption. 
        "Breast pump collection and storage supplies" 
    includes, but is not limited to: breast shields and breast 
    shield connectors; breast pump tubes and tubing adapters; 
    breast pump valves and membranes; backflow protectors and 
    backflow protector adaptors; bottles and bottle caps 
    specific to the operation of the breast pump; and breast 
    milk storage bags. 
        "Breast pump collection and storage supplies" does not 
    include: (1) bottles and bottle caps not specific to the 
    operation of the breast pump; (2) breast pump travel bags 
    and other similar carrying accessories, including ice 
    packs, labels, and other similar products; (3) breast pump 
    cleaning supplies; (4) nursing bras, bra pads, breast 
    shells, and other similar products; and (5) creams, 
    ointments, and other similar products that relieve 
    breastfeeding-related symptoms or conditions of the 
    breasts or nipples, unless sold as part of a breast pump 
    kit that is pre-packaged by the breast pump manufacturer 
    or distributor. 
        "Breast pump kit" means a kit that: (1) contains no 
    more than a breast pump, breast pump collection and 
    storage supplies, a rechargeable battery for operating the 
    breast pump, a breastmilk cooler, bottle stands, ice 
    packs, and a breast pump carrying case; and (2) is 
    pre-packaged as a breast pump kit by the breast pump 
    manufacturer or distributor. 
        (47) Tangible personal property sold by or on behalf 
    of the State Treasurer pursuant to the Revised Uniform 
    Unclaimed Property Act. This item (47) is exempt from the 
    provisions of Section 2-70. 
        (48) Beginning on January 1, 2024, tangible personal 
    property purchased by an active duty member of the armed 
    forces of the United States who presents valid military 
    identification and purchases the property using a form of 
    payment where the federal government is the payor. The 
    member of the armed forces must complete, at the point of 
    sale, a form prescribed by the Department of Revenue 
    documenting that the transaction is eligible for the 
    exemption under this paragraph. Retailers must keep the 
    form as documentation of the exemption in their records 
    for a period of not less than 6 years. "Armed forces of the 
    United States" means the United States Army, Navy, Air 
    Force, Marine Corps, or Coast Guard. This paragraph is 
    exempt from the provisions of Section 2-70. 
        (49) Gross receipts from the lease of the following 
    tangible personal property:
            (1) computer software transferred subject to a 
        license that meets the following requirements:
                (A) it is evidenced by a written agreement 
            signed by the licensor and the customer;
                    (i) an electronic agreement in which the 
                customer accepts the license by means of an 
                electronic signature that is verifiable and 
                can be authenticated and is attached to or 
                made part of the license will comply with this 
                requirement;
                    (ii) a license agreement in which the 
                customer electronically accepts the terms by 
                clicking "I agree" does not comply with this 
                requirement;
                (B) it restricts the customer's duplication 
            and use of the software;
                (C) it prohibits the customer from licensing, 
            sublicensing, or transferring the software to a 
            third party (except to a related party) without 
            the permission and continued control of the 
            licensor;
                (D) the licensor has a policy of providing 
            another copy at minimal or no charge if the 
            customer loses or damages the software, or of 
            permitting the licensee to make and keep an 
            archival copy, and such policy is either stated in 
            the license agreement, supported by the licensor's 
            books and records, or supported by a notarized 
            statement made under penalties of perjury by the 
            licensor; and
                (E) the customer must destroy or return all 
            copies of the software to the licensor at the end 
            of the license period; this provision is deemed to 
            be met, in the case of a perpetual license, 
            without being set forth in the license agreement; 
            and
            (2) property that is subject to a tax on lease 
        receipts imposed by a home rule unit of local 
        government if the ordinance imposing that tax was 
        adopted prior to January 1, 2023. 
(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21; 
102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700, 
Article 75, Section 75-20, eff. 4-19-22; 102-813, eff. 
5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section 
5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff. 
6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised 
12-12-23.)
 
    (35 ILCS 120/2-10)
    Sec. 2-10. Rate of tax. Unless otherwise provided in this 
Section, the tax imposed by this Act is at the rate of 6.25% of 
gross receipts from sales, which, on and after January 1, 
2025, includes leases, of tangible personal property made in 
the course of business.
    Beginning on July 1, 2000 and through December 31, 2000, 
with respect to motor fuel, as defined in Section 1.1 of the 
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of 
the Use Tax Act, the tax is imposed at the rate of 1.25%.
    Beginning on August 6, 2010 through August 15, 2010, and 
beginning again on August 5, 2022 through August 14, 2022, 
with respect to sales tax holiday items as defined in Section 
2-8 of this Act, the tax is imposed at the rate of 1.25%. 
    Within 14 days after July 1, 2000 (the effective date of 
Public Act 91-872), each retailer of motor fuel and gasohol 
shall cause the following notice to be posted in a prominently 
visible place on each retail dispensing device that is used to 
dispense motor fuel or gasohol in the State of Illinois: "As of 
July 1, 2000, the State of Illinois has eliminated the State's 
share of sales tax on motor fuel and gasohol through December 
31, 2000. The price on this pump should reflect the 
elimination of the tax." The notice shall be printed in bold 
print on a sign that is no smaller than 4 inches by 8 inches. 
The sign shall be clearly visible to customers. Any retailer 
who fails to post or maintain a required sign through December 
31, 2000 is guilty of a petty offense for which the fine shall 
be $500 per day per each retail premises where a violation 
occurs.
    With respect to gasohol, as defined in the Use Tax Act, the 
tax imposed by this Act applies to (i) 70% of the proceeds of 
sales made on or after January 1, 1990, and before July 1, 
2003, (ii) 80% of the proceeds of sales made on or after July 
1, 2003 and on or before July 1, 2017, (iii) 100% of the 
proceeds of sales made after July 1, 2017 and prior to January 
1, 2024, (iv) 90% of the proceeds of sales made on or after 
January 1, 2024 and on or before December 31, 2028, and (v) 
100% of the proceeds of sales made after December 31, 2028. If, 
at any time, however, the tax under this Act on sales of 
gasohol, as defined in the Use Tax Act, is imposed at the rate 
of 1.25%, then the tax imposed by this Act applies to 100% of 
the proceeds of sales of gasohol made during that time.
    With respect to mid-range ethanol blends, as defined in 
Section 3-44.3 of the Use Tax Act, the tax imposed by this Act 
applies to (i) 80% of the proceeds of sales made on or after 
January 1, 2024 and on or before December 31, 2028 and (ii) 
100% of the proceeds of sales made after December 31, 2028. If, 
at any time, however, the tax under this Act on sales of 
mid-range ethanol blends is imposed at the rate of 1.25%, then 
the tax imposed by this Act applies to 100% of the proceeds of 
sales of mid-range ethanol blends made during that time. 
    With respect to majority blended ethanol fuel, as defined 
in the Use Tax Act, the tax imposed by this Act does not apply 
to the proceeds of sales made on or after July 1, 2003 and on 
or before December 31, 2028 but applies to 100% of the proceeds 
of sales made thereafter.
    With respect to biodiesel blends, as defined in the Use 
Tax Act, with no less than 1% and no more than 10% biodiesel, 
the tax imposed by this Act applies to (i) 80% of the proceeds 
of sales made on or after July 1, 2003 and on or before 
December 31, 2018 and (ii) 100% of the proceeds of sales made 
after December 31, 2018 and before January 1, 2024. On and 
after January 1, 2024 and on or before December 31, 2030, the 
taxation of biodiesel, renewable diesel, and biodiesel blends 
shall be as provided in Section 3-5.1 of the Use Tax Act. If, 
at any time, however, the tax under this Act on sales of 
biodiesel blends, as defined in the Use Tax Act, with no less 
than 1% and no more than 10% biodiesel is imposed at the rate 
of 1.25%, then the tax imposed by this Act applies to 100% of 
the proceeds of sales of biodiesel blends with no less than 1% 
and no more than 10% biodiesel made during that time.
    With respect to biodiesel, as defined in the Use Tax Act, 
and biodiesel blends, as defined in the Use Tax Act, with more 
than 10% but no more than 99% biodiesel, the tax imposed by 
this Act does not apply to the proceeds of sales made on or 
after July 1, 2003 and on or before December 31, 2023. On and 
after January 1, 2024 and on or before December 31, 2030, the 
taxation of biodiesel, renewable diesel, and biodiesel blends 
shall be as provided in Section 3-5.1 of the Use Tax Act. 
    Until July 1, 2022 and beginning again on July 1, 2023, 
with respect to food for human consumption that is to be 
consumed off the premises where it is sold (other than 
alcoholic beverages, food consisting of or infused with adult 
use cannabis, soft drinks, and food that has been prepared for 
immediate consumption), the tax is imposed at the rate of 1%. 
Beginning July 1, 2022 and until July 1, 2023, with respect to 
food for human consumption that is to be consumed off the 
premises where it is sold (other than alcoholic beverages, 
food consisting of or infused with adult use cannabis, soft 
drinks, and food that has been prepared for immediate 
consumption), the tax is imposed at the rate of 0%. 
    With respect to prescription and nonprescription 
medicines, drugs, medical appliances, products classified as 
Class III medical devices by the United States Food and Drug 
Administration that are used for cancer treatment pursuant to 
a prescription, as well as any accessories and components 
related to those devices, modifications to a motor vehicle for 
the purpose of rendering it usable by a person with a 
disability, and insulin, blood sugar testing materials, 
syringes, and needles used by human diabetics, the tax is 
imposed at the rate of 1%. For the purposes of this Section, 
until September 1, 2009: the term "soft drinks" means any 
complete, finished, ready-to-use, non-alcoholic drink, whether 
carbonated or not, including, but not limited to, soda water, 
cola, fruit juice, vegetable juice, carbonated water, and all 
other preparations commonly known as soft drinks of whatever 
kind or description that are contained in any closed or sealed 
bottle, can, carton, or container, regardless of size; but 
"soft drinks" does not include coffee, tea, non-carbonated 
water, infant formula, milk or milk products as defined in the 
Grade A Pasteurized Milk and Milk Products Act, or drinks 
containing 50% or more natural fruit or vegetable juice.
    Notwithstanding any other provisions of this Act, 
beginning September 1, 2009, "soft drinks" means non-alcoholic 
beverages that contain natural or artificial sweeteners. "Soft 
drinks" does not include beverages that contain milk or milk 
products, soy, rice or similar milk substitutes, or greater 
than 50% of vegetable or fruit juice by volume.
    Until August 1, 2009, and notwithstanding any other 
provisions of this Act, "food for human consumption that is to 
be consumed off the premises where it is sold" includes all 
food sold through a vending machine, except soft drinks and 
food products that are dispensed hot from a vending machine, 
regardless of the location of the vending machine. Beginning 
August 1, 2009, and notwithstanding any other provisions of 
this Act, "food for human consumption that is to be consumed 
off the premises where it is sold" includes all food sold 
through a vending machine, except soft drinks, candy, and food 
products that are dispensed hot from a vending machine, 
regardless of the location of the vending machine. 
    Notwithstanding any other provisions of this Act, 
beginning September 1, 2009, "food for human consumption that 
is to be consumed off the premises where it is sold" does not 
include candy. For purposes of this Section, "candy" means a 
preparation of sugar, honey, or other natural or artificial 
sweeteners in combination with chocolate, fruits, nuts or 
other ingredients or flavorings in the form of bars, drops, or 
pieces. "Candy" does not include any preparation that contains 
flour or requires refrigeration. 
    Notwithstanding any other provisions of this Act, 
beginning September 1, 2009, "nonprescription medicines and 
drugs" does not include grooming and hygiene products. For 
purposes of this Section, "grooming and hygiene products" 
includes, but is not limited to, soaps and cleaning solutions, 
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan 
lotions and screens, unless those products are available by 
prescription only, regardless of whether the products meet the 
definition of "over-the-counter-drugs". For the purposes of 
this paragraph, "over-the-counter-drug" means a drug for human 
use that contains a label that identifies the product as a drug 
as required by 21 CFR 201.66. The "over-the-counter-drug" 
label includes: 
        (A) a "Drug Facts" panel; or
        (B) a statement of the "active ingredient(s)" with a 
    list of those ingredients contained in the compound, 
    substance or preparation.
    Beginning on January 1, 2014 (the effective date of Public 
Act 98-122), "prescription and nonprescription medicines and 
drugs" includes medical cannabis purchased from a registered 
dispensing organization under the Compassionate Use of Medical 
Cannabis Program Act. 
    As used in this Section, "adult use cannabis" means 
cannabis subject to tax under the Cannabis Cultivation 
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law 
and does not include cannabis subject to tax under the 
Compassionate Use of Medical Cannabis Program Act. 
(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20, 
Section 20-20, eff. 4-19-22; 102-700, Article 60, Section 
60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff. 
4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
 
    (35 ILCS 120/2-12)
    Sec. 2-12. Location where retailer is deemed to be engaged 
in the business of selling. The purpose of this Section is to 
specify where a retailer is deemed to be engaged in the 
business of selling tangible personal property for the 
purposes of this Act, the Use Tax Act, the Service Use Tax Act, 
and the Service Occupation Tax Act, and for the purpose of 
collecting any other local retailers' occupation tax 
administered by the Department. This Section applies only with 
respect to the particular selling activities described in the 
following paragraphs. The provisions of this Section are not 
intended to, and shall not be interpreted to, affect where a 
retailer is deemed to be engaged in the business of selling 
with respect to any activity that is not specifically 
described in the following paragraphs.
        (1) If a purchaser who is present at the retailer's 
    place of business, having no prior commitment to the 
    retailer, agrees to purchase and makes payment for 
    tangible personal property at the retailer's place of 
    business, then the transaction shall be deemed an 
    over-the-counter sale occurring at the retailer's same 
    place of business where the purchaser was present and made 
    payment for that tangible personal property if the 
    retailer regularly stocks the purchased tangible personal 
    property or similar tangible personal property in the 
    quantity, or similar quantity, for sale at the retailer's 
    same place of business and then either (i) the purchaser 
    takes possession of the tangible personal property at the 
    same place of business or (ii) the retailer delivers or 
    arranges for the tangible personal property to be 
    delivered to the purchaser. 
        (2) If a purchaser, having no prior commitment to the 
    retailer, agrees to purchase tangible personal property 
    and makes payment over the phone, in writing, or via the 
    Internet and takes possession of the tangible personal 
    property at the retailer's place of business, then the 
    sale shall be deemed to have occurred at the retailer's 
    place of business where the purchaser takes possession of 
    the property if the retailer regularly stocks the item or 
    similar items in the quantity, or similar quantities, 
    purchased by the purchaser. 
        (3) A retailer is deemed to be engaged in the business 
    of selling food, beverages, or other tangible personal 
    property through a vending machine at the location where 
    the vending machine is located at the time the sale is made 
    if (i) the vending machine is a device operated by coin, 
    currency, credit card, token, coupon or similar device; 
    (2) the food, beverage or other tangible personal property 
    is contained within the vending machine and dispensed from 
    the vending machine; and (3) the purchaser takes 
    possession of the purchased food, beverage or other 
    tangible personal property immediately. 
        (4) Minerals. A producer of coal or other mineral 
    mined in Illinois is deemed to be engaged in the business 
    of selling at the place where the coal or other mineral 
    mined in Illinois is extracted from the earth. With 
    respect to minerals (i) the term "extracted from the 
    earth" means the location at which the coal or other 
    mineral is extracted from the mouth of the mine, and (ii) a 
    "mineral" includes not only coal, but also oil, sand, 
    stone taken from a quarry, gravel and any other thing 
    commonly regarded as a mineral and extracted from the 
    earth. This paragraph does not apply to coal or another 
    mineral when it is delivered or shipped by the seller to 
    the purchaser at a point outside Illinois so that the sale 
    is exempt under the United States Constitution as a sale 
    in interstate or foreign commerce. 
        (5) A retailer selling tangible personal property to a 
    nominal lessee or bailee pursuant to a lease with a dollar 
    or other nominal option to purchase is engaged in the 
    business of selling at the location where the property is 
    first delivered to the lessee or bailee for its intended 
    use. 
        (5.5) Lease transactions. The lease of tangible 
    personal property that is subject to the tax on leases 
    under this amendatory Act of the 103rd General Assembly is 
    sourced as follows:
            (i) For a lease that requires recurring periodic 
        payments and for which the property is delivered to 
        the lessee by the lessor, each periodic payment is 
        sourced to the primary property location for each 
        period covered by the payment. The primary property 
        location shall be as indicated by an address for the 
        property provided by the lessee that is available to 
        the lessor from its records maintained in the ordinary 
        course of business, when use of this address does not 
        constitute bad faith. The property location is not 
        altered by intermittent use at different locations, 
        such as use of business property that accompanies 
        employees on business trips and service calls.
            (ii) For all other leases, including a lease that 
        does not require recurring periodic payments and any 
        lease for which the lessee takes possession of the 
        property at the lessor's place of business, the 
        payment is sourced as otherwise provided under this 
        Act for sales at retail other than leases. 
        (6) Beginning on January 1, 2021, a remote retailer 
    making retail sales of tangible personal property that 
    meet or exceed the thresholds established in paragraph (1) 
    or (2) of subsection (b) of Section 2 of this Act is 
    engaged in the business of selling at the Illinois 
    location to which the tangible personal property is 
    shipped or delivered or at which possession is taken by 
    the purchaser. 
        (7) Beginning January 1, 2021, a marketplace 
    facilitator facilitating sales of tangible personal 
    property that meet or exceed one of the thresholds 
    established in paragraph (1) or (2) of subsection (c) of 
    Section 2 of this Act is deemed to be engaged in the 
    business of selling at the Illinois location to which the 
    tangible personal property is shipped or delivered or at 
    which possession is taken by the purchaser when the sale 
    is made by a marketplace seller on the marketplace 
    facilitator's marketplace. 
(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
 
    (35 ILCS 120/2a)  (from Ch. 120, par. 441a)
    Sec. 2a. Registration of retailers. It is unlawful for any 
person to engage in the business of selling, which, on and 
after January 1, 2025, includes leasing, tangible personal 
property at retail in this State without a certificate of 
registration from the Department. Application for a 
certificate of registration shall be made to the Department 
upon forms furnished by it. Each such application shall be 
signed and verified and shall state: (1) the name and social 
security number of the applicant; (2) the address of his 
principal place of business; (3) the address of the principal 
place of business from which he engages in the business of 
selling tangible personal property at retail in this State and 
the addresses of all other places of business, if any 
(enumerating such addresses, if any, in a separate list 
attached to and made a part of the application), from which he 
engages in the business of selling tangible personal property 
at retail in this State; (4) the name and address of the person 
or persons who will be responsible for filing returns and 
payment of taxes due under this Act; (5) in the case of a 
publicly traded corporation, the name and title of the Chief 
Financial Officer, Chief Operating Officer, and any other 
officer or employee with responsibility for preparing tax 
returns under this Act, and, in the case of all other 
corporations, the name, title, and social security number of 
each corporate officer; (6) in the case of a limited liability 
company, the name, social security number, and FEIN number of 
each manager and member; and (7) such other information as the 
Department may reasonably require. The application shall 
contain an acceptance of responsibility signed by the person 
or persons who will be responsible for filing returns and 
payment of the taxes due under this Act. If the applicant will 
sell tangible personal property at retail through vending 
machines, his application to register shall indicate the 
number of vending machines to be so operated. If requested by 
the Department at any time, that person shall verify the total 
number of vending machines he or she uses in his or her 
business of selling tangible personal property at retail.
    The Department shall provide by rule for an expedited 
business registration process for remote retailers required to 
register and file under subsection (b) of Section 2 who use a 
certified service provider to file their returns under this 
Act. Such expedited registration process shall allow the 
Department to register a taxpayer based upon the same 
registration information required by the Streamlined Sales Tax 
Governing Board for states participating in the Streamlined 
Sales Tax Project. 
    The Department may deny a certificate of registration to 
any applicant if a person who is named as the owner, a partner, 
a manager or member of a limited liability company, or a 
corporate officer of the applicant on the application for the 
certificate of registration is or has been named as the owner, 
a partner, a manager or member of a limited liability company, 
or a corporate officer on the application for the certificate 
of registration of another retailer that (i) is in default for 
moneys due under this Act or any other tax or fee Act 
administered by the Department or (ii) fails to file any 
return, on or before the due date prescribed for filing that 
return (including any extensions of time granted by the 
Department), that the retailer is required to file under this 
Act or any other tax or fee Act administered by the Department. 
For purposes of this paragraph only, in determining whether a 
person is in default for moneys due, the Department shall 
include only amounts established as a final liability within 
the 23 years prior to the date of the Department's notice of 
denial of a certificate of registration. 
    The Department may require an applicant for a certificate 
of registration hereunder to, at the time of filing such 
application, furnish a bond from a surety company authorized 
to do business in the State of Illinois, or an irrevocable bank 
letter of credit or a bond signed by 2 personal sureties who 
have filed, with the Department, sworn statements disclosing 
net assets equal to at least 3 times the amount of the bond to 
be required of such applicant, or a bond secured by an 
assignment of a bank account or certificate of deposit, stocks 
or bonds, conditioned upon the applicant paying to the State 
of Illinois all moneys becoming due under this Act and under 
any other State tax law or municipal or county tax ordinance or 
resolution under which the certificate of registration that is 
issued to the applicant under this Act will permit the 
applicant to engage in business without registering separately 
under such other law, ordinance or resolution. In making a 
determination as to whether to require a bond or other 
security, the Department shall take into consideration whether 
the owner, any partner, any manager or member of a limited 
liability company, or a corporate officer of the applicant is 
or has been the owner, a partner, a manager or member of a 
limited liability company, or a corporate officer of another 
retailer that is in default for moneys due under this Act or 
any other tax or fee Act administered by the Department; and 
whether the owner, any partner, any manager or member of a 
limited liability company, or a corporate officer of the 
applicant is or has been the owner, a partner, a manager or 
member of a limited liability company, or a corporate officer 
of another retailer whose certificate of registration has been 
revoked within the previous 5 years under this Act or any other 
tax or fee Act administered by the Department. If a bond or 
other security is required, the Department shall fix the 
amount of the bond or other security, taking into 
consideration the amount of money expected to become due from 
the applicant under this Act and under any other State tax law 
or municipal or county tax ordinance or resolution under which 
the certificate of registration that is issued to the 
applicant under this Act will permit the applicant to engage 
in business without registering separately under such other 
law, ordinance, or resolution. The amount of security required 
by the Department shall be such as, in its opinion, will 
protect the State of Illinois against failure to pay the 
amount which may become due from the applicant under this Act 
and under any other State tax law or municipal or county tax 
ordinance or resolution under which the certificate of 
registration that is issued to the applicant under this Act 
will permit the applicant to engage in business without 
registering separately under such other law, ordinance or 
resolution, but the amount of the security required by the 
Department shall not exceed three times the amount of the 
applicant's average monthly tax liability, or $50,000.00, 
whichever amount is lower.
    No certificate of registration under this Act shall be 
issued by the Department until the applicant provides the 
Department with satisfactory security, if required, as herein 
provided for.
    Upon receipt of the application for certificate of 
registration in proper form, and upon approval by the 
Department of the security furnished by the applicant, if 
required, the Department shall issue to such applicant a 
certificate of registration which shall permit the person to 
whom it is issued to engage in the business of selling tangible 
personal property at retail in this State. The certificate of 
registration shall be conspicuously displayed at the place of 
business which the person so registered states in his 
application to be the principal place of business from which 
he engages in the business of selling tangible personal 
property at retail in this State.
    No certificate of registration issued prior to July 1, 
2017 to a taxpayer who files returns required by this Act on a 
monthly basis or renewed prior to July 1, 2017 by a taxpayer 
who files returns required by this Act on a monthly basis shall 
be valid after the expiration of 5 years from the date of its 
issuance or last renewal. No certificate of registration 
issued on or after July 1, 2017 to a taxpayer who files returns 
required by this Act on a monthly basis or renewed on or after 
July 1, 2017 by a taxpayer who files returns required by this 
Act on a monthly basis shall be valid after the expiration of 
one year from the date of its issuance or last renewal. The 
expiration date of a sub-certificate of registration shall be 
that of the certificate of registration to which the 
sub-certificate relates. Prior to July 1, 2017, a certificate 
of registration shall automatically be renewed, subject to 
revocation as provided by this Act, for an additional 5 years 
from the date of its expiration unless otherwise notified by 
the Department as provided by this paragraph. On and after 
July 1, 2017, a certificate of registration shall 
automatically be renewed, subject to revocation as provided by 
this Act, for an additional one year from the date of its 
expiration unless otherwise notified by the Department as 
provided by this paragraph. 
    Where a taxpayer to whom a certificate of registration is 
issued under this Act is in default to the State of Illinois 
for delinquent returns or for moneys due under this Act or any 
other State tax law or municipal or county ordinance 
administered or enforced by the Department, the Department 
shall, not less than 60 days before the expiration date of such 
certificate of registration, give notice to the taxpayer to 
whom the certificate was issued of the account period of the 
delinquent returns, the amount of tax, penalty and interest 
due and owing from the taxpayer, and that the certificate of 
registration shall not be automatically renewed upon its 
expiration date unless the taxpayer, on or before the date of 
expiration, has filed and paid the delinquent returns or paid 
the defaulted amount in full. A taxpayer to whom such a notice 
is issued shall be deemed an applicant for renewal. The 
Department shall promulgate regulations establishing 
procedures for taxpayers who file returns on a monthly basis 
but desire and qualify to change to a quarterly or yearly 
filing basis and will no longer be subject to renewal under 
this Section, and for taxpayers who file returns on a yearly or 
quarterly basis but who desire or are required to change to a 
monthly filing basis and will be subject to renewal under this 
Section.
    The Department may in its discretion approve renewal by an 
applicant who is in default if, at the time of application for 
renewal, the applicant files all of the delinquent returns or 
pays to the Department such percentage of the defaulted amount 
as may be determined by the Department and agrees in writing to 
waive all limitations upon the Department for collection of 
the remaining defaulted amount to the Department over a period 
not to exceed 5 years from the date of renewal of the 
certificate; however, no renewal application submitted by an 
applicant who is in default shall be approved if the 
immediately preceding renewal by the applicant was conditioned 
upon the installment payment agreement described in this 
Section. The payment agreement herein provided for shall be in 
addition to and not in lieu of the security that may be 
required by this Section of a taxpayer who is no longer 
considered a prior continuous compliance taxpayer. The 
execution of the payment agreement as provided in this Act 
shall not toll the accrual of interest at the statutory rate.
    The Department may suspend a certificate of registration 
if the Department finds that the person to whom the 
certificate of registration has been issued knowingly sold 
contraband cigarettes. 
    A certificate of registration issued under this Act more 
than 5 years before January 1, 1990 (the effective date of 
Public Act 86-383) shall expire and be subject to the renewal 
provisions of this Section on the next anniversary of the date 
of issuance of such certificate which occurs more than 6 
months after January 1, 1990 (the effective date of Public Act 
86-383). A certificate of registration issued less than 5 
years before January 1, 1990 (the effective date of Public Act 
86-383) shall expire and be subject to the renewal provisions 
of this Section on the 5th anniversary of the issuance of the 
certificate.
    If the person so registered states that he operates other 
places of business from which he engages in the business of 
selling tangible personal property at retail in this State, 
the Department shall furnish him with a sub-certificate of 
registration for each such place of business, and the 
applicant shall display the appropriate sub-certificate of 
registration at each such place of business. All 
sub-certificates of registration shall bear the same 
registration number as that appearing upon the certificate of 
registration to which such sub-certificates relate.
    If the applicant will sell tangible personal property at 
retail through vending machines, the Department shall furnish 
him with a sub-certificate of registration for each such 
vending machine, and the applicant shall display the 
appropriate sub-certificate of registration on each such 
vending machine by attaching the sub-certificate of 
registration to a conspicuous part of such vending machine. If 
a person who is registered to sell tangible personal property 
at retail through vending machines adds an additional vending 
machine or additional vending machines to the number of 
vending machines he or she uses in his or her business of 
selling tangible personal property at retail, he or she shall 
notify the Department, on a form prescribed by the Department, 
to request an additional sub-certificate or additional 
sub-certificates of registration, as applicable. With each 
such request, the applicant shall report the number of 
sub-certificates of registration he or she is requesting as 
well as the total number of vending machines from which he or 
she makes retail sales. 
    Where the same person engages in 2 or more businesses of 
selling tangible personal property at retail in this State, 
which businesses are substantially different in character or 
engaged in under different trade names or engaged in under 
other substantially dissimilar circumstances (so that it is 
more practicable, from an accounting, auditing or bookkeeping 
standpoint, for such businesses to be separately registered), 
the Department may require or permit such person (subject to 
the same requirements concerning the furnishing of security as 
those that are provided for hereinbefore in this Section as to 
each application for a certificate of registration) to apply 
for and obtain a separate certificate of registration for each 
such business or for any of such businesses, under a single 
certificate of registration supplemented by related 
sub-certificates of registration.
    Any person who is registered under the Retailers' 
Occupation Tax Act as of March 8, 1963, and who, during the 
3-year period immediately prior to March 8, 1963, or during a 
continuous 3-year period part of which passed immediately 
before and the remainder of which passes immediately after 
March 8, 1963, has been so registered continuously and who is 
determined by the Department not to have been either 
delinquent or deficient in the payment of tax liability during 
that period under this Act or under any other State tax law or 
municipal or county tax ordinance or resolution under which 
the certificate of registration that is issued to the 
registrant under this Act will permit the registrant to engage 
in business without registering separately under such other 
law, ordinance or resolution, shall be considered to be a 
Prior Continuous Compliance taxpayer. Also any taxpayer who 
has, as verified by the Department, faithfully and 
continuously complied with the condition of his bond or other 
security under the provisions of this Act for a period of 3 
consecutive years shall be considered to be a Prior Continuous 
Compliance taxpayer.
    Every Prior Continuous Compliance taxpayer shall be exempt 
from all requirements under this Act concerning the furnishing 
of a bond or other security as a condition precedent to his 
being authorized to engage in the business of selling tangible 
personal property at retail in this State. This exemption 
shall continue for each such taxpayer until such time as he may 
be determined by the Department to be delinquent in the filing 
of any returns, or is determined by the Department (either 
through the Department's issuance of a final assessment which 
has become final under the Act, or by the taxpayer's filing of 
a return which admits tax that is not paid to be due) to be 
delinquent or deficient in the paying of any tax under this Act 
or under any other State tax law or municipal or county tax 
ordinance or resolution under which the certificate of 
registration that is issued to the registrant under this Act 
will permit the registrant to engage in business without 
registering separately under such other law, ordinance or 
resolution, at which time that taxpayer shall become subject 
to all the financial responsibility requirements of this Act 
and, as a condition of being allowed to continue to engage in 
the business of selling tangible personal property at retail, 
may be required to post bond or other acceptable security with 
the Department covering liability which such taxpayer may 
thereafter incur. Any taxpayer who fails to pay an admitted or 
established liability under this Act may also be required to 
post bond or other acceptable security with this Department 
guaranteeing the payment of such admitted or established 
liability.
    No certificate of registration shall be issued to any 
person who is in default to the State of Illinois for moneys 
due under this Act or under any other State tax law or 
municipal or county tax ordinance or resolution under which 
the certificate of registration that is issued to the 
applicant under this Act will permit the applicant to engage 
in business without registering separately under such other 
law, ordinance or resolution.
    Any person aggrieved by any decision of the Department 
under this Section may, within 20 days after notice of such 
decision, protest and request a hearing, whereupon the 
Department shall give notice to such person of the time and 
place fixed for such hearing and shall hold a hearing in 
conformity with the provisions of this Act and then issue its 
final administrative decision in the matter to such person. In 
the absence of such a protest within 20 days, the Department's 
decision shall become final without any further determination 
being made or notice given.
    With respect to security other than bonds (upon which the 
Department may sue in the event of a forfeiture), if the 
taxpayer fails to pay, when due, any amount whose payment such 
security guarantees, the Department shall, after such 
liability is admitted by the taxpayer or established by the 
Department through the issuance of a final assessment that has 
become final under the law, convert the security which that 
taxpayer has furnished into money for the State, after first 
giving the taxpayer at least 10 days' written notice, by 
registered or certified mail, to pay the liability or forfeit 
such security to the Department. If the security consists of 
stocks or bonds or other securities which are listed on a 
public exchange, the Department shall sell such securities 
through such public exchange. If the security consists of an 
irrevocable bank letter of credit, the Department shall 
convert the security in the manner provided for in the Uniform 
Commercial Code. If the security consists of a bank 
certificate of deposit, the Department shall convert the 
security into money by demanding and collecting the amount of 
such bank certificate of deposit from the bank which issued 
such certificate. If the security consists of a type of stocks 
or other securities which are not listed on a public exchange, 
the Department shall sell such security to the highest and 
best bidder after giving at least 10 days' notice of the date, 
time and place of the intended sale by publication in the 
"State Official Newspaper". If the Department realizes more 
than the amount of such liability from the security, plus the 
expenses incurred by the Department in converting the security 
into money, the Department shall pay such excess to the 
taxpayer who furnished such security, and the balance shall be 
paid into the State Treasury.
    The Department shall discharge any surety and shall 
release and return any security deposited, assigned, pledged 
or otherwise provided to it by a taxpayer under this Section 
within 30 days after:
        (1) such taxpayer becomes a Prior Continuous 
    Compliance taxpayer; or
        (2) such taxpayer has ceased to collect receipts on 
    which he is required to remit tax to the Department, has 
    filed a final tax return, and has paid to the Department an 
    amount sufficient to discharge his remaining tax 
    liability, as determined by the Department, under this Act 
    and under every other State tax law or municipal or county 
    tax ordinance or resolution under which the certificate of 
    registration issued under this Act permits the registrant 
    to engage in business without registering separately under 
    such other law, ordinance or resolution. The Department 
    shall make a final determination of the taxpayer's 
    outstanding tax liability as expeditiously as possible 
    after his final tax return has been filed; if the 
    Department cannot make such final determination within 45 
    days after receiving the final tax return, within such 
    period it shall so notify the taxpayer, stating its 
    reasons therefor.
(Source: P.A. 102-40, eff. 6-25-21; 103-319, eff. 1-1-24.)
 
    (35 ILCS 120/2c)  (from Ch. 120, par. 441c)
    Sec. 2c. Resales of tangible personal property. If the 
purchaser is not registered with the Department as a taxpayer, 
but claims to be a reseller of the tangible personal property 
in such a way that such resales are not taxable under this Act 
or under some other tax law which the Department may 
administer, such purchaser (except in the case of an 
out-of-State purchaser who will always resell and deliver the 
property to his customers outside Illinois) shall apply to the 
Department for a resale number. Such applicant shall state 
facts which will show the Department why such applicant is not 
liable for tax under this Act or under some other tax law which 
the Department may administer on any of his resales and shall 
furnish such additional information as the Department may 
reasonably require.
    Upon approval of the application, the Department shall 
assign a resale number to the applicant and shall certify such 
number to him. The Department may cancel any such number which 
is obtained through misrepresentation, or which is used to 
make a purchase tax-free when the purchase in fact is not a 
purchase for resale, or which no longer applies because of the 
purchaser's having discontinued the making of tax exempt 
resales of the property.
    The Department may restrict the use of the number to one 
year at a time or to some other definite period if the 
Department finds it impracticable or otherwise inadvisable to 
issue such numbers for indefinite periods.
    Except as provided hereinabove in this Section, a sale 
shall be made tax-free on the ground of being a sale for resale 
if the purchaser has an active registration number or resale 
number from the Department and furnishes that number to the 
seller in connection with certifying to the seller that any 
sale to such purchaser is nontaxable because of being a sale 
for resale. On and after January 1, 2025, a sale to a lessor of 
tangible personal property who is subject to the tax on leases 
implemented by this amendatory Act of the 103rd General 
Assembly, for the purpose of leasing that property, shall be 
made tax-free on the ground of being a sale for resale, 
provided the other provisions of this paragraph are met. 
    Failure to present an active registration number or resale 
number and a certification to the seller that a sale is for 
resale creates a presumption that a sale is not for resale. 
This presumption may be rebutted by other evidence that all of 
the seller's sales are sale for resale, or that a particular 
sale is a sale for resale.
(Source: P.A. 83-1463.)
 
    (35 ILCS 120/3)  (from Ch. 120, par. 442)
    Sec. 3. Except as provided in this Section, on or before 
the twentieth day of each calendar month, every person engaged 
in the business of selling, which, on and after January 1, 
2025, includes leasing, tangible personal property at retail 
in this State during the preceding calendar month shall file a 
return with the Department, stating:
        1. The name of the seller;
        2. His residence address and the address of his 
    principal place of business and the address of the 
    principal place of business (if that is a different 
    address) from which he engages in the business of selling 
    tangible personal property at retail in this State;
        3. Total amount of receipts received by him during the 
    preceding calendar month or quarter, as the case may be, 
    from sales of tangible personal property, and from 
    services furnished, by him during such preceding calendar 
    month or quarter;
        4. Total amount received by him during the preceding 
    calendar month or quarter on charge and time sales of 
    tangible personal property, and from services furnished, 
    by him prior to the month or quarter for which the return 
    is filed;
        5. Deductions allowed by law;
        6. Gross receipts which were received by him during 
    the preceding calendar month or quarter and upon the basis 
    of which the tax is imposed, including gross receipts on 
    food for human consumption that is to be consumed off the 
    premises where it is sold (other than alcoholic beverages, 
    food consisting of or infused with adult use cannabis, 
    soft drinks, and food that has been prepared for immediate 
    consumption) which were received during the preceding 
    calendar month or quarter and upon which tax would have 
    been due but for the 0% rate imposed under Public Act 
    102-700;
        7. The amount of credit provided in Section 2d of this 
    Act;
        8. The amount of tax due, including the amount of tax 
    that would have been due on food for human consumption 
    that is to be consumed off the premises where it is sold 
    (other than alcoholic beverages, food consisting of or 
    infused with adult use cannabis, soft drinks, and food 
    that has been prepared for immediate consumption) but for 
    the 0% rate imposed under Public Act 102-700;
        9. The signature of the taxpayer; and
        10. Such other reasonable information as the 
    Department may require.
    In the case of leases, except as otherwise provided in 
this Act, the lessor must remit for each tax return period only 
the tax applicable to that part of the selling price actually 
received during such tax return period. 
    On and after January 1, 2018, except for returns required 
to be filed prior to January 1, 2023 for motor vehicles, 
watercraft, aircraft, and trailers that are required to be 
registered with an agency of this State, with respect to 
retailers whose annual gross receipts average $20,000 or more, 
all returns required to be filed pursuant to this Act shall be 
filed electronically. On and after January 1, 2023, with 
respect to retailers whose annual gross receipts average 
$20,000 or more, all returns required to be filed pursuant to 
this Act, including, but not limited to, returns for motor 
vehicles, watercraft, aircraft, and trailers that are required 
to be registered with an agency of this State, shall be filed 
electronically. Retailers who demonstrate that they do not 
have access to the Internet or demonstrate hardship in filing 
electronically may petition the Department to waive the 
electronic filing requirement. 
    If a taxpayer fails to sign a return within 30 days after 
the proper notice and demand for signature by the Department, 
the return shall be considered valid and any amount shown to be 
due on the return shall be deemed assessed.
    Each return shall be accompanied by the statement of 
prepaid tax issued pursuant to Section 2e for which credit is 
claimed.
    Prior to October 1, 2003, and on and after September 1, 
2004, a retailer may accept a Manufacturer's Purchase Credit 
certification from a purchaser in satisfaction of Use Tax as 
provided in Section 3-85 of the Use Tax Act if the purchaser 
provides the appropriate documentation as required by Section 
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit 
certification, accepted by a retailer prior to October 1, 2003 
and on and after September 1, 2004 as provided in Section 3-85 
of the Use Tax Act, may be used by that retailer to satisfy 
Retailers' Occupation Tax liability in the amount claimed in 
the certification, not to exceed 6.25% of the receipts subject 
to tax from a qualifying purchase. A Manufacturer's Purchase 
Credit reported on any original or amended return filed under 
this Act after October 20, 2003 for reporting periods prior to 
September 1, 2004 shall be disallowed. Manufacturer's Purchase 
Credit reported on annual returns due on or after January 1, 
2005 will be disallowed for periods prior to September 1, 
2004. No Manufacturer's Purchase Credit may be used after 
September 30, 2003 through August 31, 2004 to satisfy any tax 
liability imposed under this Act, including any audit 
liability.
    Beginning on July 1, 2023 and through December 31, 2032, a 
retailer may accept a Sustainable Aviation Fuel Purchase 
Credit certification from an air common carrier-purchaser in 
satisfaction of Use Tax on aviation fuel as provided in 
Section 3-87 of the Use Tax Act if the purchaser provides the 
appropriate documentation as required by Section 3-87 of the 
Use Tax Act. A Sustainable Aviation Fuel Purchase Credit 
certification accepted by a retailer in accordance with this 
paragraph may be used by that retailer to satisfy Retailers' 
Occupation Tax liability (but not in satisfaction of penalty 
or interest) in the amount claimed in the certification, not 
to exceed 6.25% of the receipts subject to tax from a sale of 
aviation fuel. In addition, for a sale of aviation fuel to 
qualify to earn the Sustainable Aviation Fuel Purchase Credit, 
retailers must retain in their books and records a 
certification from the producer of the aviation fuel that the 
aviation fuel sold by the retailer and for which a sustainable 
aviation fuel purchase credit was earned meets the definition 
of sustainable aviation fuel under Section 3-87 of the Use Tax 
Act. The documentation must include detail sufficient for the 
Department to determine the number of gallons of sustainable 
aviation fuel sold. 
    The Department may require returns to be filed on a 
quarterly basis. If so required, a return for each calendar 
quarter shall be filed on or before the twentieth day of the 
calendar month following the end of such calendar quarter. The 
taxpayer shall also file a return with the Department for each 
of the first 2 two months of each calendar quarter, on or 
before the twentieth day of the following calendar month, 
stating:
        1. The name of the seller;
        2. The address of the principal place of business from 
    which he engages in the business of selling tangible 
    personal property at retail in this State;
        3. The total amount of taxable receipts received by 
    him during the preceding calendar month from sales of 
    tangible personal property by him during such preceding 
    calendar month, including receipts from charge and time 
    sales, but less all deductions allowed by law;
        4. The amount of credit provided in Section 2d of this 
    Act;
        5. The amount of tax due; and
        6. Such other reasonable information as the Department 
    may require.
    Every person engaged in the business of selling aviation 
fuel at retail in this State during the preceding calendar 
month shall, instead of reporting and paying tax as otherwise 
required by this Section, report and pay such tax on a separate 
aviation fuel tax return. The requirements related to the 
return shall be as otherwise provided in this Section. 
Notwithstanding any other provisions of this Act to the 
contrary, retailers selling aviation fuel shall file all 
aviation fuel tax returns and shall make all aviation fuel tax 
payments by electronic means in the manner and form required 
by the Department. For purposes of this Section, "aviation 
fuel" means jet fuel and aviation gasoline. 
    Beginning on October 1, 2003, any person who is not a 
licensed distributor, importing distributor, or manufacturer, 
as defined in the Liquor Control Act of 1934, but is engaged in 
the business of selling, at retail, alcoholic liquor shall 
file a statement with the Department of Revenue, in a format 
and at a time prescribed by the Department, showing the total 
amount paid for alcoholic liquor purchased during the 
preceding month and such other information as is reasonably 
required by the Department. The Department may adopt rules to 
require that this statement be filed in an electronic or 
telephonic format. Such rules may provide for exceptions from 
the filing requirements of this paragraph. For the purposes of 
this paragraph, the term "alcoholic liquor" shall have the 
meaning prescribed in the Liquor Control Act of 1934.
    Beginning on October 1, 2003, every distributor, importing 
distributor, and manufacturer of alcoholic liquor as defined 
in the Liquor Control Act of 1934, shall file a statement with 
the Department of Revenue, no later than the 10th day of the 
month for the preceding month during which transactions 
occurred, by electronic means, showing the total amount of 
gross receipts from the sale of alcoholic liquor sold or 
distributed during the preceding month to purchasers; 
identifying the purchaser to whom it was sold or distributed; 
the purchaser's tax registration number; and such other 
information reasonably required by the Department. A 
distributor, importing distributor, or manufacturer of 
alcoholic liquor must personally deliver, mail, or provide by 
electronic means to each retailer listed on the monthly 
statement a report containing a cumulative total of that 
distributor's, importing distributor's, or manufacturer's 
total sales of alcoholic liquor to that retailer no later than 
the 10th day of the month for the preceding month during which 
the transaction occurred. The distributor, importing 
distributor, or manufacturer shall notify the retailer as to 
the method by which the distributor, importing distributor, or 
manufacturer will provide the sales information. If the 
retailer is unable to receive the sales information by 
electronic means, the distributor, importing distributor, or 
manufacturer shall furnish the sales information by personal 
delivery or by mail. For purposes of this paragraph, the term 
"electronic means" includes, but is not limited to, the use of 
a secure Internet website, e-mail, or facsimile.
    If a total amount of less than $1 is payable, refundable or 
creditable, such amount shall be disregarded if it is less 
than 50 cents and shall be increased to $1 if it is 50 cents or 
more.
    Notwithstanding any other provision of this Act to the 
contrary, retailers subject to tax on cannabis shall file all 
cannabis tax returns and shall make all cannabis tax payments 
by electronic means in the manner and form required by the 
Department.
    Beginning October 1, 1993, a taxpayer who has an average 
monthly tax liability of $150,000 or more shall make all 
payments required by rules of the Department by electronic 
funds transfer. Beginning October 1, 1994, a taxpayer who has 
an average monthly tax liability of $100,000 or more shall 
make all payments required by rules of the Department by 
electronic funds transfer. Beginning October 1, 1995, a 
taxpayer who has an average monthly tax liability of $50,000 
or more shall make all payments required by rules of the 
Department by electronic funds transfer. Beginning October 1, 
2000, a taxpayer who has an annual tax liability of $200,000 or 
more shall make all payments required by rules of the 
Department by electronic funds transfer. The term "annual tax 
liability" shall be the sum of the taxpayer's liabilities 
under this Act, and under all other State and local occupation 
and use tax laws administered by the Department, for the 
immediately preceding calendar year. The term "average monthly 
tax liability" shall be the sum of the taxpayer's liabilities 
under this Act, and under all other State and local occupation 
and use tax laws administered by the Department, for the 
immediately preceding calendar year divided by 12. Beginning 
on October 1, 2002, a taxpayer who has a tax liability in the 
amount set forth in subsection (b) of Section 2505-210 of the 
Department of Revenue Law shall make all payments required by 
rules of the Department by electronic funds transfer.
    Before August 1 of each year beginning in 1993, the 
Department shall notify all taxpayers required to make 
payments by electronic funds transfer. All taxpayers required 
to make payments by electronic funds transfer shall make those 
payments for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic 
funds transfer may make payments by electronic funds transfer 
with the permission of the Department.
    All taxpayers required to make payment by electronic funds 
transfer and any taxpayers authorized to voluntarily make 
payments by electronic funds transfer shall make those 
payments in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to 
effectuate a program of electronic funds transfer and the 
requirements of this Section.
    Any amount which is required to be shown or reported on any 
return or other document under this Act shall, if such amount 
is not a whole-dollar amount, be increased to the nearest 
whole-dollar amount in any case where the fractional part of a 
dollar is 50 cents or more, and decreased to the nearest 
whole-dollar amount where the fractional part of a dollar is 
less than 50 cents.
    If the retailer is otherwise required to file a monthly 
return and if the retailer's average monthly tax liability to 
the Department does not exceed $200, the Department may 
authorize his returns to be filed on a quarter annual basis, 
with the return for January, February, and March of a given 
year being due by April 20 of such year; with the return for 
April, May, and June of a given year being due by July 20 of 
such year; with the return for July, August, and September of a 
given year being due by October 20 of such year, and with the 
return for October, November, and December of a given year 
being due by January 20 of the following year.
    If the retailer is otherwise required to file a monthly or 
quarterly return and if the retailer's average monthly tax 
liability with the Department does not exceed $50, the 
Department may authorize his returns to be filed on an annual 
basis, with the return for a given year being due by January 20 
of the following year.
    Such quarter annual and annual returns, as to form and 
substance, shall be subject to the same requirements as 
monthly returns.
    Notwithstanding any other provision in this Act concerning 
the time within which a retailer may file his return, in the 
case of any retailer who ceases to engage in a kind of business 
which makes him responsible for filing returns under this Act, 
such retailer shall file a final return under this Act with the 
Department not more than one month after discontinuing such 
business.
    Where the same person has more than one business 
registered with the Department under separate registrations 
under this Act, such person may not file each return that is 
due as a single return covering all such registered 
businesses, but shall file separate returns for each such 
registered business.
    In addition, with respect to motor vehicles, watercraft, 
aircraft, and trailers that are required to be registered with 
an agency of this State, except as otherwise provided in this 
Section, every retailer selling this kind of tangible personal 
property shall file, with the Department, upon a form to be 
prescribed and supplied by the Department, a separate return 
for each such item of tangible personal property which the 
retailer sells, except that if, in the same transaction, (i) a 
retailer of aircraft, watercraft, motor vehicles, or trailers 
transfers more than one aircraft, watercraft, motor vehicle, 
or trailer to another aircraft, watercraft, motor vehicle 
retailer, or trailer retailer for the purpose of resale or 
(ii) a retailer of aircraft, watercraft, motor vehicles, or 
trailers transfers more than one aircraft, watercraft, motor 
vehicle, or trailer to a purchaser for use as a qualifying 
rolling stock as provided in Section 2-5 of this Act, then that 
seller may report the transfer of all aircraft, watercraft, 
motor vehicles, or trailers involved in that transaction to 
the Department on the same uniform invoice-transaction 
reporting return form. For purposes of this Section, 
"watercraft" means a Class 2, Class 3, or Class 4 watercraft as 
defined in Section 3-2 of the Boat Registration and Safety 
Act, a personal watercraft, or any boat equipped with an 
inboard motor.
    In addition, with respect to motor vehicles, watercraft, 
aircraft, and trailers that are required to be registered with 
an agency of this State, every person who is engaged in the 
business of leasing or renting such items and who, in 
connection with such business, sells any such item to a 
retailer for the purpose of resale is, notwithstanding any 
other provision of this Section to the contrary, authorized to 
meet the return-filing requirement of this Act by reporting 
the transfer of all the aircraft, watercraft, motor vehicles, 
or trailers transferred for resale during a month to the 
Department on the same uniform invoice-transaction reporting 
return form on or before the 20th of the month following the 
month in which the transfer takes place. Notwithstanding any 
other provision of this Act to the contrary, all returns filed 
under this paragraph must be filed by electronic means in the 
manner and form as required by the Department. 
    Any retailer who sells only motor vehicles, watercraft, 
aircraft, or trailers that are required to be registered with 
an agency of this State, so that all retailers' occupation tax 
liability is required to be reported, and is reported, on such 
transaction reporting returns and who is not otherwise 
required to file monthly or quarterly returns, need not file 
monthly or quarterly returns. However, those retailers shall 
be required to file returns on an annual basis.
    The transaction reporting return, in the case of motor 
vehicles or trailers that are required to be registered with 
an agency of this State, shall be the same document as the 
Uniform Invoice referred to in Section 5-402 of the Illinois 
Vehicle Code and must show the name and address of the seller; 
the name and address of the purchaser; the amount of the 
selling price including the amount allowed by the retailer for 
traded-in property, if any; the amount allowed by the retailer 
for the traded-in tangible personal property, if any, to the 
extent to which Section 1 of this Act allows an exemption for 
the value of traded-in property; the balance payable after 
deducting such trade-in allowance from the total selling 
price; the amount of tax due from the retailer with respect to 
such transaction; the amount of tax collected from the 
purchaser by the retailer on such transaction (or satisfactory 
evidence that such tax is not due in that particular instance, 
if that is claimed to be the fact); the place and date of the 
sale; a sufficient identification of the property sold; such 
other information as is required in Section 5-402 of the 
Illinois Vehicle Code, and such other information as the 
Department may reasonably require.
    The transaction reporting return in the case of watercraft 
or aircraft must show the name and address of the seller; the 
name and address of the purchaser; the amount of the selling 
price including the amount allowed by the retailer for 
traded-in property, if any; the amount allowed by the retailer 
for the traded-in tangible personal property, if any, to the 
extent to which Section 1 of this Act allows an exemption for 
the value of traded-in property; the balance payable after 
deducting such trade-in allowance from the total selling 
price; the amount of tax due from the retailer with respect to 
such transaction; the amount of tax collected from the 
purchaser by the retailer on such transaction (or satisfactory 
evidence that such tax is not due in that particular instance, 
if that is claimed to be the fact); the place and date of the 
sale, a sufficient identification of the property sold, and 
such other information as the Department may reasonably 
require.
    Such transaction reporting return shall be filed not later 
than 20 days after the day of delivery of the item that is 
being sold, but may be filed by the retailer at any time sooner 
than that if he chooses to do so. The transaction reporting 
return and tax remittance or proof of exemption from the 
Illinois use tax may be transmitted to the Department by way of 
the State agency with which, or State officer with whom the 
tangible personal property must be titled or registered (if 
titling or registration is required) if the Department and 
such agency or State officer determine that this procedure 
will expedite the processing of applications for title or 
registration.
    With each such transaction reporting return, the retailer 
shall remit the proper amount of tax due (or shall submit 
satisfactory evidence that the sale is not taxable if that is 
the case), to the Department or its agents, whereupon the 
Department shall issue, in the purchaser's name, a use tax 
receipt (or a certificate of exemption if the Department is 
satisfied that the particular sale is tax exempt) which such 
purchaser may submit to the agency with which, or State 
officer with whom, he must title or register the tangible 
personal property that is involved (if titling or registration 
is required) in support of such purchaser's application for an 
Illinois certificate or other evidence of title or 
registration to such tangible personal property.
    No retailer's failure or refusal to remit tax under this 
Act precludes a user, who has paid the proper tax to the 
retailer, from obtaining his certificate of title or other 
evidence of title or registration (if titling or registration 
is required) upon satisfying the Department that such user has 
paid the proper tax (if tax is due) to the retailer. The 
Department shall adopt appropriate rules to carry out the 
mandate of this paragraph.
    If the user who would otherwise pay tax to the retailer 
wants the transaction reporting return filed and the payment 
of the tax or proof of exemption made to the Department before 
the retailer is willing to take these actions and such user has 
not paid the tax to the retailer, such user may certify to the 
fact of such delay by the retailer and may (upon the Department 
being satisfied of the truth of such certification) transmit 
the information required by the transaction reporting return 
and the remittance for tax or proof of exemption directly to 
the Department and obtain his tax receipt or exemption 
determination, in which event the transaction reporting return 
and tax remittance (if a tax payment was required) shall be 
credited by the Department to the proper retailer's account 
with the Department, but without the 2.1% or 1.75% discount 
provided for in this Section being allowed. When the user pays 
the tax directly to the Department, he shall pay the tax in the 
same amount and in the same form in which it would be remitted 
if the tax had been remitted to the Department by the retailer.
    Refunds made by the seller during the preceding return 
period to purchasers, on account of tangible personal property 
returned to the seller, shall be allowed as a deduction under 
subdivision 5 of his monthly or quarterly return, as the case 
may be, in case the seller had theretofore included the 
receipts from the sale of such tangible personal property in a 
return filed by him and had paid the tax imposed by this Act 
with respect to such receipts.
    Where the seller is a corporation, the return filed on 
behalf of such corporation shall be signed by the president, 
vice-president, secretary, or treasurer or by the properly 
accredited agent of such corporation.
    Where the seller is a limited liability company, the 
return filed on behalf of the limited liability company shall 
be signed by a manager, member, or properly accredited agent 
of the limited liability company.
    Except as provided in this Section, the retailer filing 
the return under this Section shall, at the time of filing such 
return, pay to the Department the amount of tax imposed by this 
Act less a discount of 2.1% prior to January 1, 1990 and 1.75% 
on and after January 1, 1990, or $5 per calendar year, 
whichever is greater, which is allowed to reimburse the 
retailer for the expenses incurred in keeping records, 
preparing and filing returns, remitting the tax and supplying 
data to the Department on request. On and after January 1, 
2021, a certified service provider, as defined in the Leveling 
the Playing Field for Illinois Retail Act, filing the return 
under this Section on behalf of a remote retailer shall, at the 
time of such return, pay to the Department the amount of tax 
imposed by this Act less a discount of 1.75%. A remote retailer 
using a certified service provider to file a return on its 
behalf, as provided in the Leveling the Playing Field for 
Illinois Retail Act, is not eligible for the discount. When 
determining the discount allowed under this Section, retailers 
shall include the amount of tax that would have been due at the 
1% rate but for the 0% rate imposed under Public Act 102-700. 
When determining the discount allowed under this Section, 
retailers shall include the amount of tax that would have been 
due at the 6.25% rate but for the 1.25% rate imposed on sales 
tax holiday items under Public Act 102-700. The discount under 
this Section is not allowed for the 1.25% portion of taxes paid 
on aviation fuel that is subject to the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. Any 
prepayment made pursuant to Section 2d of this Act shall be 
included in the amount on which such 2.1% or 1.75% discount is 
computed. In the case of retailers who report and pay the tax 
on a transaction by transaction basis, as provided in this 
Section, such discount shall be taken with each such tax 
remittance instead of when such retailer files his periodic 
return. The discount allowed under this Section is allowed 
only for returns that are filed in the manner required by this 
Act. The Department may disallow the discount for retailers 
whose certificate of registration is revoked at the time the 
return is filed, but only if the Department's decision to 
revoke the certificate of registration has become final. 
    Before October 1, 2000, if the taxpayer's average monthly 
tax liability to the Department under this Act, the Use Tax 
Act, the Service Occupation Tax Act, and the Service Use Tax 
Act, excluding any liability for prepaid sales tax to be 
remitted in accordance with Section 2d of this Act, was 
$10,000 or more during the preceding 4 complete calendar 
quarters, he shall file a return with the Department each 
month by the 20th day of the month next following the month 
during which such tax liability is incurred and shall make 
payments to the Department on or before the 7th, 15th, 22nd and 
last day of the month during which such liability is incurred. 
On and after October 1, 2000, if the taxpayer's average 
monthly tax liability to the Department under this Act, the 
Use Tax Act, the Service Occupation Tax Act, and the Service 
Use Tax Act, excluding any liability for prepaid sales tax to 
be remitted in accordance with Section 2d of this Act, was 
$20,000 or more during the preceding 4 complete calendar 
quarters, he shall file a return with the Department each 
month by the 20th day of the month next following the month 
during which such tax liability is incurred and shall make 
payment to the Department on or before the 7th, 15th, 22nd and 
last day of the month during which such liability is incurred. 
If the month during which such tax liability is incurred began 
prior to January 1, 1985, each payment shall be in an amount 
equal to 1/4 of the taxpayer's actual liability for the month 
or an amount set by the Department not to exceed 1/4 of the 
average monthly liability of the taxpayer to the Department 
for the preceding 4 complete calendar quarters (excluding the 
month of highest liability and the month of lowest liability 
in such 4 quarter period). If the month during which such tax 
liability is incurred begins on or after January 1, 1985 and 
prior to January 1, 1987, each payment shall be in an amount 
equal to 22.5% of the taxpayer's actual liability for the 
month or 27.5% of the taxpayer's liability for the same 
calendar month of the preceding year. If the month during 
which such tax liability is incurred begins on or after 
January 1, 1987 and prior to January 1, 1988, each payment 
shall be in an amount equal to 22.5% of the taxpayer's actual 
liability for the month or 26.25% of the taxpayer's liability 
for the same calendar month of the preceding year. If the month 
during which such tax liability is incurred begins on or after 
January 1, 1988, and prior to January 1, 1989, or begins on or 
after January 1, 1996, each payment shall be in an amount equal 
to 22.5% of the taxpayer's actual liability for the month or 
25% of the taxpayer's liability for the same calendar month of 
the preceding year. If the month during which such tax 
liability is incurred begins on or after January 1, 1989, and 
prior to January 1, 1996, each payment shall be in an amount 
equal to 22.5% of the taxpayer's actual liability for the 
month or 25% of the taxpayer's liability for the same calendar 
month of the preceding year or 100% of the taxpayer's actual 
liability for the quarter monthly reporting period. The amount 
of such quarter monthly payments shall be credited against the 
final tax liability of the taxpayer's return for that month. 
Before October 1, 2000, once applicable, the requirement of 
the making of quarter monthly payments to the Department by 
taxpayers having an average monthly tax liability of $10,000 
or more as determined in the manner provided above shall 
continue until such taxpayer's average monthly liability to 
the Department during the preceding 4 complete calendar 
quarters (excluding the month of highest liability and the 
month of lowest liability) is less than $9,000, or until such 
taxpayer's average monthly liability to the Department as 
computed for each calendar quarter of the 4 preceding complete 
calendar quarter period is less than $10,000. However, if a 
taxpayer can show the Department that a substantial change in 
the taxpayer's business has occurred which causes the taxpayer 
to anticipate that his average monthly tax liability for the 
reasonably foreseeable future will fall below the $10,000 
threshold stated above, then such taxpayer may petition the 
Department for a change in such taxpayer's reporting status. 
On and after October 1, 2000, once applicable, the requirement 
of the making of quarter monthly payments to the Department by 
taxpayers having an average monthly tax liability of $20,000 
or more as determined in the manner provided above shall 
continue until such taxpayer's average monthly liability to 
the Department during the preceding 4 complete calendar 
quarters (excluding the month of highest liability and the 
month of lowest liability) is less than $19,000 or until such 
taxpayer's average monthly liability to the Department as 
computed for each calendar quarter of the 4 preceding complete 
calendar quarter period is less than $20,000. However, if a 
taxpayer can show the Department that a substantial change in 
the taxpayer's business has occurred which causes the taxpayer 
to anticipate that his average monthly tax liability for the 
reasonably foreseeable future will fall below the $20,000 
threshold stated above, then such taxpayer may petition the 
Department for a change in such taxpayer's reporting status. 
The Department shall change such taxpayer's reporting status 
unless it finds that such change is seasonal in nature and not 
likely to be long term. Quarter monthly payment status shall 
be determined under this paragraph as if the rate reduction to 
0% in Public Act 102-700 on food for human consumption that is 
to be consumed off the premises where it is sold (other than 
alcoholic beverages, food consisting of or infused with adult 
use cannabis, soft drinks, and food that has been prepared for 
immediate consumption) had not occurred. For quarter monthly 
payments due under this paragraph on or after July 1, 2023 and 
through June 30, 2024, "25% of the taxpayer's liability for 
the same calendar month of the preceding year" shall be 
determined as if the rate reduction to 0% in Public Act 102-700 
had not occurred. Quarter monthly payment status shall be 
determined under this paragraph as if the rate reduction to 
1.25% in Public Act 102-700 on sales tax holiday items had not 
occurred. For quarter monthly payments due on or after July 1, 
2023 and through June 30, 2024, "25% of the taxpayer's 
liability for the same calendar month of the preceding year" 
shall be determined as if the rate reduction to 1.25% in Public 
Act 102-700 on sales tax holiday items had not occurred. If any 
such quarter monthly payment is not paid at the time or in the 
amount required by this Section, then the taxpayer shall be 
liable for penalties and interest on the difference between 
the minimum amount due as a payment and the amount of such 
quarter monthly payment actually and timely paid, except 
insofar as the taxpayer has previously made payments for that 
month to the Department in excess of the minimum payments 
previously due as provided in this Section. The Department 
shall make reasonable rules and regulations to govern the 
quarter monthly payment amount and quarter monthly payment 
dates for taxpayers who file on other than a calendar monthly 
basis.
    The provisions of this paragraph apply before October 1, 
2001. Without regard to whether a taxpayer is required to make 
quarter monthly payments as specified above, any taxpayer who 
is required by Section 2d of this Act to collect and remit 
prepaid taxes and has collected prepaid taxes which average in 
excess of $25,000 per month during the preceding 2 complete 
calendar quarters, shall file a return with the Department as 
required by Section 2f and shall make payments to the 
Department on or before the 7th, 15th, 22nd and last day of the 
month during which such liability is incurred. If the month 
during which such tax liability is incurred began prior to 
September 1, 1985 (the effective date of Public Act 84-221), 
each payment shall be in an amount not less than 22.5% of the 
taxpayer's actual liability under Section 2d. If the month 
during which such tax liability is incurred begins on or after 
January 1, 1986, each payment shall be in an amount equal to 
22.5% of the taxpayer's actual liability for the month or 
27.5% of the taxpayer's liability for the same calendar month 
of the preceding calendar year. If the month during which such 
tax liability is incurred begins on or after January 1, 1987, 
each payment shall be in an amount equal to 22.5% of the 
taxpayer's actual liability for the month or 26.25% of the 
taxpayer's liability for the same calendar month of the 
preceding year. The amount of such quarter monthly payments 
shall be credited against the final tax liability of the 
taxpayer's return for that month filed under this Section or 
Section 2f, as the case may be. Once applicable, the 
requirement of the making of quarter monthly payments to the 
Department pursuant to this paragraph shall continue until 
such taxpayer's average monthly prepaid tax collections during 
the preceding 2 complete calendar quarters is $25,000 or less. 
If any such quarter monthly payment is not paid at the time or 
in the amount required, the taxpayer shall be liable for 
penalties and interest on such difference, except insofar as 
the taxpayer has previously made payments for that month in 
excess of the minimum payments previously due.
    The provisions of this paragraph apply on and after 
October 1, 2001. Without regard to whether a taxpayer is 
required to make quarter monthly payments as specified above, 
any taxpayer who is required by Section 2d of this Act to 
collect and remit prepaid taxes and has collected prepaid 
taxes that average in excess of $20,000 per month during the 
preceding 4 complete calendar quarters shall file a return 
with the Department as required by Section 2f and shall make 
payments to the Department on or before the 7th, 15th, 22nd, 
and last day of the month during which the liability is 
incurred. Each payment shall be in an amount equal to 22.5% of 
the taxpayer's actual liability for the month or 25% of the 
taxpayer's liability for the same calendar month of the 
preceding year. The amount of the quarter monthly payments 
shall be credited against the final tax liability of the 
taxpayer's return for that month filed under this Section or 
Section 2f, as the case may be. Once applicable, the 
requirement of the making of quarter monthly payments to the 
Department pursuant to this paragraph shall continue until the 
taxpayer's average monthly prepaid tax collections during the 
preceding 4 complete calendar quarters (excluding the month of 
highest liability and the month of lowest liability) is less 
than $19,000 or until such taxpayer's average monthly 
liability to the Department as computed for each calendar 
quarter of the 4 preceding complete calendar quarters is less 
than $20,000. If any such quarter monthly payment is not paid 
at the time or in the amount required, the taxpayer shall be 
liable for penalties and interest on such difference, except 
insofar as the taxpayer has previously made payments for that 
month in excess of the minimum payments previously due.
    If any payment provided for in this Section exceeds the 
taxpayer's liabilities under this Act, the Use Tax Act, the 
Service Occupation Tax Act, and the Service Use Tax Act, as 
shown on an original monthly return, the Department shall, if 
requested by the taxpayer, issue to the taxpayer a credit 
memorandum no later than 30 days after the date of payment. The 
credit evidenced by such credit memorandum may be assigned by 
the taxpayer to a similar taxpayer under this Act, the Use Tax 
Act, the Service Occupation Tax Act, or the Service Use Tax 
Act, in accordance with reasonable rules and regulations to be 
prescribed by the Department. If no such request is made, the 
taxpayer may credit such excess payment against tax liability 
subsequently to be remitted to the Department under this Act, 
the Use Tax Act, the Service Occupation Tax Act, or the Service 
Use Tax Act, in accordance with reasonable rules and 
regulations prescribed by the Department. If the Department 
subsequently determined that all or any part of the credit 
taken was not actually due to the taxpayer, the taxpayer's 
2.1% and 1.75% vendor's discount shall be reduced by 2.1% or 
1.75% of the difference between the credit taken and that 
actually due, and that taxpayer shall be liable for penalties 
and interest on such difference.
    If a retailer of motor fuel is entitled to a credit under 
Section 2d of this Act which exceeds the taxpayer's liability 
to the Department under this Act for the month for which the 
taxpayer is filing a return, the Department shall issue the 
taxpayer a credit memorandum for the excess.
    Beginning January 1, 1990, each month the Department shall 
pay into the Local Government Tax Fund, a special fund in the 
State treasury which is hereby created, the net revenue 
realized for the preceding month from the 1% tax imposed under 
this Act.
    Beginning January 1, 1990, each month the Department shall 
pay into the County and Mass Transit District Fund, a special 
fund in the State treasury which is hereby created, 4% of the 
net revenue realized for the preceding month from the 6.25% 
general rate other than aviation fuel sold on or after 
December 1, 2019. This exception for aviation fuel only 
applies for so long as the revenue use requirements of 49 
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
    Beginning August 1, 2000, each month the Department shall 
pay into the County and Mass Transit District Fund 20% of the 
net revenue realized for the preceding month from the 1.25% 
rate on the selling price of motor fuel and gasohol. If, in any 
month, the tax on sales tax holiday items, as defined in 
Section 2-8, is imposed at the rate of 1.25%, then the 
Department shall pay 20% of the net revenue realized for that 
month from the 1.25% rate on the selling price of sales tax 
holiday items into the County and Mass Transit District Fund.
    Beginning January 1, 1990, each month the Department shall 
pay into the Local Government Tax Fund 16% of the net revenue 
realized for the preceding month from the 6.25% general rate 
on the selling price of tangible personal property other than 
aviation fuel sold on or after December 1, 2019. This 
exception for aviation fuel only applies for so long as the 
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
47133 are binding on the State.
    For aviation fuel sold on or after December 1, 2019, each 
month the Department shall pay into the State Aviation Program 
Fund 20% of the net revenue realized for the preceding month 
from the 6.25% general rate on the selling price of aviation 
fuel, less an amount estimated by the Department to be 
required for refunds of the 20% portion of the tax on aviation 
fuel under this Act, which amount shall be deposited into the 
Aviation Fuel Sales Tax Refund Fund. The Department shall only 
pay moneys into the State Aviation Program Fund and the 
Aviation Fuel Sales Tax Refund Fund under this Act for so long 
as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133 are binding on the State. 
    Beginning August 1, 2000, each month the Department shall 
pay into the Local Government Tax Fund 80% of the net revenue 
realized for the preceding month from the 1.25% rate on the 
selling price of motor fuel and gasohol. If, in any month, the 
tax on sales tax holiday items, as defined in Section 2-8, is 
imposed at the rate of 1.25%, then the Department shall pay 80% 
of the net revenue realized for that month from the 1.25% rate 
on the selling price of sales tax holiday items into the Local 
Government Tax Fund.
    Beginning October 1, 2009, each month the Department shall 
pay into the Capital Projects Fund an amount that is equal to 
an amount estimated by the Department to represent 80% of the 
net revenue realized for the preceding month from the sale of 
candy, grooming and hygiene products, and soft drinks that had 
been taxed at a rate of 1% prior to September 1, 2009 but that 
are now taxed at 6.25%. 
    Beginning July 1, 2011, each month the Department shall 
pay into the Clean Air Act Permit Fund 80% of the net revenue 
realized for the preceding month from the 6.25% general rate 
on the selling price of sorbents used in Illinois in the 
process of sorbent injection as used to comply with the 
Environmental Protection Act or the federal Clean Air Act, but 
the total payment into the Clean Air Act Permit Fund under this 
Act and the Use Tax Act shall not exceed $2,000,000 in any 
fiscal year. 
    Beginning July 1, 2013, each month the Department shall 
pay into the Underground Storage Tank Fund from the proceeds 
collected under this Act, the Use Tax Act, the Service Use Tax 
Act, and the Service Occupation Tax Act an amount equal to the 
average monthly deficit in the Underground Storage Tank Fund 
during the prior year, as certified annually by the Illinois 
Environmental Protection Agency, but the total payment into 
the Underground Storage Tank Fund under this Act, the Use Tax 
Act, the Service Use Tax Act, and the Service Occupation Tax 
Act shall not exceed $18,000,000 in any State fiscal year. As 
used in this paragraph, the "average monthly deficit" shall be 
equal to the difference between the average monthly claims for 
payment by the fund and the average monthly revenues deposited 
into the fund, excluding payments made pursuant to this 
paragraph. 
    Beginning July 1, 2015, of the remainder of the moneys 
received by the Department under the Use Tax Act, the Service 
Use Tax Act, the Service Occupation Tax Act, and this Act, each 
month the Department shall deposit $500,000 into the State 
Crime Laboratory Fund. 
    Of the remainder of the moneys received by the Department 
pursuant to this Act, (a) 1.75% thereof shall be paid into the 
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 
and after July 1, 1989, 3.8% thereof shall be paid into the 
Build Illinois Fund; provided, however, that if in any fiscal 
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case 
may be, of the moneys received by the Department and required 
to be paid into the Build Illinois Fund pursuant to this Act, 
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax 
Act, and Section 9 of the Service Occupation Tax Act, such Acts 
being hereinafter called the "Tax Acts" and such aggregate of 
2.2% or 3.8%, as the case may be, of moneys being hereinafter 
called the "Tax Act Amount", and (2) the amount transferred to 
the Build Illinois Fund from the State and Local Sales Tax 
Reform Fund shall be less than the Annual Specified Amount (as 
hereinafter defined), an amount equal to the difference shall 
be immediately paid into the Build Illinois Fund from other 
moneys received by the Department pursuant to the Tax Acts; 
the "Annual Specified Amount" means the amounts specified 
below for fiscal years 1986 through 1993:
Fiscal YearAnnual Specified Amount
1986$54,800,000
1987$76,650,000
1988$80,480,000
1989$88,510,000
1990$115,330,000
1991$145,470,000
1992$182,730,000
1993$206,520,000;
and means the Certified Annual Debt Service Requirement (as 
defined in Section 13 of the Build Illinois Bond Act) or the 
Tax Act Amount, whichever is greater, for fiscal year 1994 and 
each fiscal year thereafter; and further provided, that if on 
the last business day of any month the sum of (1) the Tax Act 
Amount required to be deposited into the Build Illinois Bond 
Account in the Build Illinois Fund during such month and (2) 
the amount transferred to the Build Illinois Fund from the 
State and Local Sales Tax Reform Fund shall have been less than 
1/12 of the Annual Specified Amount, an amount equal to the 
difference shall be immediately paid into the Build Illinois 
Fund from other moneys received by the Department pursuant to 
the Tax Acts; and, further provided, that in no event shall the 
payments required under the preceding proviso result in 
aggregate payments into the Build Illinois Fund pursuant to 
this clause (b) for any fiscal year in excess of the greater of 
(i) the Tax Act Amount or (ii) the Annual Specified Amount for 
such fiscal year. The amounts payable into the Build Illinois 
Fund under clause (b) of the first sentence in this paragraph 
shall be payable only until such time as the aggregate amount 
on deposit under each trust indenture securing Bonds issued 
and outstanding pursuant to the Build Illinois Bond Act is 
sufficient, taking into account any future investment income, 
to fully provide, in accordance with such indenture, for the 
defeasance of or the payment of the principal of, premium, if 
any, and interest on the Bonds secured by such indenture and on 
any Bonds expected to be issued thereafter and all fees and 
costs payable with respect thereto, all as certified by the 
Director of the Bureau of the Budget (now Governor's Office of 
Management and Budget). If on the last business day of any 
month in which Bonds are outstanding pursuant to the Build 
Illinois Bond Act, the aggregate of moneys deposited in the 
Build Illinois Bond Account in the Build Illinois Fund in such 
month shall be less than the amount required to be transferred 
in such month from the Build Illinois Bond Account to the Build 
Illinois Bond Retirement and Interest Fund pursuant to Section 
13 of the Build Illinois Bond Act, an amount equal to such 
deficiency shall be immediately paid from other moneys 
received by the Department pursuant to the Tax Acts to the 
Build Illinois Fund; provided, however, that any amounts paid 
to the Build Illinois Fund in any fiscal year pursuant to this 
sentence shall be deemed to constitute payments pursuant to 
clause (b) of the first sentence of this paragraph and shall 
reduce the amount otherwise payable for such fiscal year 
pursuant to that clause (b). The moneys received by the 
Department pursuant to this Act and required to be deposited 
into the Build Illinois Fund are subject to the pledge, claim 
and charge set forth in Section 12 of the Build Illinois Bond 
Act.
    Subject to payment of amounts into the Build Illinois Fund 
as provided in the preceding paragraph or in any amendment 
thereto hereafter enacted, the following specified monthly 
installment of the amount requested in the certificate of the 
Chairman of the Metropolitan Pier and Exposition Authority 
provided under Section 8.25f of the State Finance Act, but not 
in excess of sums designated as "Total Deposit", shall be 
deposited in the aggregate from collections under Section 9 of 
the Use Tax Act, Section 9 of the Service Use Tax Act, Section 
9 of the Service Occupation Tax Act, and Section 3 of the 
Retailers' Occupation Tax Act into the McCormick Place 
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021300,000,000
2022300,000,000
2023300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
       
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033375,000,000
2034375,000,000
2035375,000,000
2036450,000,000
and 
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal 
year thereafter, one-eighth of the amount requested in the 
certificate of the Chairman of the Metropolitan Pier and 
Exposition Authority for that fiscal year, less the amount 
deposited into the McCormick Place Expansion Project Fund by 
the State Treasurer in the respective month under subsection 
(g) of Section 13 of the Metropolitan Pier and Exposition 
Authority Act, plus cumulative deficiencies in the deposits 
required under this Section for previous months and years, 
shall be deposited into the McCormick Place Expansion Project 
Fund, until the full amount requested for the fiscal year, but 
not in excess of the amount specified above as "Total 
Deposit", has been deposited.
    Subject to payment of amounts into the Capital Projects 
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, 
and the McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs or in any amendments thereto hereafter 
enacted, for aviation fuel sold on or after December 1, 2019, 
the Department shall each month deposit into the Aviation Fuel 
Sales Tax Refund Fund an amount estimated by the Department to 
be required for refunds of the 80% portion of the tax on 
aviation fuel under this Act. The Department shall only 
deposit moneys into the Aviation Fuel Sales Tax Refund Fund 
under this paragraph for so long as the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
binding on the State. 
    Subject to payment of amounts into the Build Illinois Fund 
and the McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs or in any amendments thereto hereafter 
enacted, beginning July 1, 1993 and ending on September 30, 
2013, the Department shall each month pay into the Illinois 
Tax Increment Fund 0.27% of 80% of the net revenue realized for 
the preceding month from the 6.25% general rate on the selling 
price of tangible personal property.
    Subject to payment of amounts into the Build Illinois 
Fund, the McCormick Place Expansion Project Fund, and the 
Illinois Tax Increment Fund pursuant to the preceding 
paragraphs or in any amendments to this Section hereafter 
enacted, beginning on the first day of the first calendar 
month to occur on or after August 26, 2014 (the effective date 
of Public Act 98-1098), each month, from the collections made 
under Section 9 of the Use Tax Act, Section 9 of the Service 
Use Tax Act, Section 9 of the Service Occupation Tax Act, and 
Section 3 of the Retailers' Occupation Tax Act, the Department 
shall pay into the Tax Compliance and Administration Fund, to 
be used, subject to appropriation, to fund additional auditors 
and compliance personnel at the Department of Revenue, an 
amount equal to 1/12 of 5% of 80% of the cash receipts 
collected during the preceding fiscal year by the Audit Bureau 
of the Department under the Use Tax Act, the Service Use Tax 
Act, the Service Occupation Tax Act, the Retailers' Occupation 
Tax Act, and associated local occupation and use taxes 
administered by the Department. 
    Subject to payments of amounts into the Build Illinois 
Fund, the McCormick Place Expansion Project Fund, the Illinois 
Tax Increment Fund, the Energy Infrastructure Fund, and the 
Tax Compliance and Administration Fund as provided in this 
Section, beginning on July 1, 2018 the Department shall pay 
each month into the Downstate Public Transportation Fund the 
moneys required to be so paid under Section 2-3 of the 
Downstate Public Transportation Act.
    Subject to successful execution and delivery of a 
public-private agreement between the public agency and private 
entity and completion of the civic build, beginning on July 1, 
2023, of the remainder of the moneys received by the 
Department under the Use Tax Act, the Service Use Tax Act, the 
Service Occupation Tax Act, and this Act, the Department shall 
deposit the following specified deposits in the aggregate from 
collections under the Use Tax Act, the Service Use Tax Act, the 
Service Occupation Tax Act, and the Retailers' Occupation Tax 
Act, as required under Section 8.25g of the State Finance Act 
for distribution consistent with the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
The moneys received by the Department pursuant to this Act and 
required to be deposited into the Civic and Transit 
Infrastructure Fund are subject to the pledge, claim and 
charge set forth in Section 25-55 of the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
As used in this paragraph, "civic build", "private entity", 
"public-private agreement", and "public agency" have the 
meanings provided in Section 25-10 of the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
        Fiscal Year.............................Total Deposit
        2024.....................................$200,000,000
        2025....................................$206,000,000 
        2026....................................$212,200,000 
        2027....................................$218,500,000 
        2028....................................$225,100,000 
        2029....................................$288,700,000 
        2030....................................$298,900,000 
        2031....................................$309,300,000 
        2032....................................$320,100,000 
        2033....................................$331,200,000 
        2034....................................$341,200,000 
        2035....................................$351,400,000 
        2036....................................$361,900,000 
        2037....................................$372,800,000 
        2038....................................$384,000,000 
        2039....................................$395,500,000 
        2040....................................$407,400,000 
        2041....................................$419,600,000 
        2042....................................$432,200,000 
        2043....................................$445,100,000 
    Beginning July 1, 2021 and until July 1, 2022, subject to 
the payment of amounts into the County and Mass Transit 
District Fund, the Local Government Tax Fund, the Build 
Illinois Fund, the McCormick Place Expansion Project Fund, the 
Illinois Tax Increment Fund, and the Tax Compliance and 
Administration Fund as provided in this Section, the 
Department shall pay each month into the Road Fund the amount 
estimated to represent 16% of the net revenue realized from 
the taxes imposed on motor fuel and gasohol. Beginning July 1, 
2022 and until July 1, 2023, subject to the payment of amounts 
into the County and Mass Transit District Fund, the Local 
Government Tax Fund, the Build Illinois Fund, the McCormick 
Place Expansion Project Fund, the Illinois Tax Increment Fund, 
and the Tax Compliance and Administration Fund as provided in 
this Section, the Department shall pay each month into the 
Road Fund the amount estimated to represent 32% of the net 
revenue realized from the taxes imposed on motor fuel and 
gasohol. Beginning July 1, 2023 and until July 1, 2024, 
subject to the payment of amounts into the County and Mass 
Transit District Fund, the Local Government Tax Fund, the 
Build Illinois Fund, the McCormick Place Expansion Project 
Fund, the Illinois Tax Increment Fund, and the Tax Compliance 
and Administration Fund as provided in this Section, the 
Department shall pay each month into the Road Fund the amount 
estimated to represent 48% of the net revenue realized from 
the taxes imposed on motor fuel and gasohol. Beginning July 1, 
2024 and until July 1, 2025, subject to the payment of amounts 
into the County and Mass Transit District Fund, the Local 
Government Tax Fund, the Build Illinois Fund, the McCormick 
Place Expansion Project Fund, the Illinois Tax Increment Fund, 
and the Tax Compliance and Administration Fund as provided in 
this Section, the Department shall pay each month into the 
Road Fund the amount estimated to represent 64% of the net 
revenue realized from the taxes imposed on motor fuel and 
gasohol. Beginning on July 1, 2025, subject to the payment of 
amounts into the County and Mass Transit District Fund, the 
Local Government Tax Fund, the Build Illinois Fund, the 
McCormick Place Expansion Project Fund, the Illinois Tax 
Increment Fund, and the Tax Compliance and Administration Fund 
as provided in this Section, the Department shall pay each 
month into the Road Fund the amount estimated to represent 80% 
of the net revenue realized from the taxes imposed on motor 
fuel and gasohol. As used in this paragraph "motor fuel" has 
the meaning given to that term in Section 1.1 of the Motor Fuel 
Tax Law, and "gasohol" has the meaning given to that term in 
Section 3-40 of the Use Tax Act.
    Of the remainder of the moneys received by the Department 
pursuant to this Act, 75% thereof shall be paid into the State 
treasury and 25% shall be reserved in a special account and 
used only for the transfer to the Common School Fund as part of 
the monthly transfer from the General Revenue Fund in 
accordance with Section 8a of the State Finance Act.
    The Department may, upon separate written notice to a 
taxpayer, require the taxpayer to prepare and file with the 
Department on a form prescribed by the Department within not 
less than 60 days after receipt of the notice an annual 
information return for the tax year specified in the notice. 
Such annual return to the Department shall include a statement 
of gross receipts as shown by the retailer's last federal 
Federal income tax return. If the total receipts of the 
business as reported in the federal Federal income tax return 
do not agree with the gross receipts reported to the 
Department of Revenue for the same period, the retailer shall 
attach to his annual return a schedule showing a 
reconciliation of the 2 amounts and the reasons for the 
difference. The retailer's annual return to the Department 
shall also disclose the cost of goods sold by the retailer 
during the year covered by such return, opening and closing 
inventories of such goods for such year, costs of goods used 
from stock or taken from stock and given away by the retailer 
during such year, payroll information of the retailer's 
business during such year and any additional reasonable 
information which the Department deems would be helpful in 
determining the accuracy of the monthly, quarterly, or annual 
returns filed by such retailer as provided for in this 
Section.
    If the annual information return required by this Section 
is not filed when and as required, the taxpayer shall be liable 
as follows:
        (i) Until January 1, 1994, the taxpayer shall be 
    liable for a penalty equal to 1/6 of 1% of the tax due from 
    such taxpayer under this Act during the period to be 
    covered by the annual return for each month or fraction of 
    a month until such return is filed as required, the 
    penalty to be assessed and collected in the same manner as 
    any other penalty provided for in this Act.
        (ii) On and after January 1, 1994, the taxpayer shall 
    be liable for a penalty as described in Section 3-4 of the 
    Uniform Penalty and Interest Act.
    The chief executive officer, proprietor, owner, or highest 
ranking manager shall sign the annual return to certify the 
accuracy of the information contained therein. Any person who 
willfully signs the annual return containing false or 
inaccurate information shall be guilty of perjury and punished 
accordingly. The annual return form prescribed by the 
Department shall include a warning that the person signing the 
return may be liable for perjury.
    The provisions of this Section concerning the filing of an 
annual information return do not apply to a retailer who is not 
required to file an income tax return with the United States 
Government.
    As soon as possible after the first day of each month, upon 
certification of the Department of Revenue, the Comptroller 
shall order transferred and the Treasurer shall transfer from 
the General Revenue Fund to the Motor Fuel Tax Fund an amount 
equal to 1.7% of 80% of the net revenue realized under this Act 
for the second preceding month. Beginning April 1, 2000, this 
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue 
collected by the State pursuant to this Act, less the amount 
paid out during that month as refunds to taxpayers for 
overpayment of liability.
    For greater simplicity of administration, manufacturers, 
importers and wholesalers whose products are sold at retail in 
Illinois by numerous retailers, and who wish to do so, may 
assume the responsibility for accounting and paying to the 
Department all tax accruing under this Act with respect to 
such sales, if the retailers who are affected do not make 
written objection to the Department to this arrangement.
    Any person who promotes, organizes, or provides retail 
selling space for concessionaires or other types of sellers at 
the Illinois State Fair, DuQuoin State Fair, county fairs, 
local fairs, art shows, flea markets, and similar exhibitions 
or events, including any transient merchant as defined by 
Section 2 of the Transient Merchant Act of 1987, is required to 
file a report with the Department providing the name of the 
merchant's business, the name of the person or persons engaged 
in merchant's business, the permanent address and Illinois 
Retailers Occupation Tax Registration Number of the merchant, 
the dates and location of the event, and other reasonable 
information that the Department may require. The report must 
be filed not later than the 20th day of the month next 
following the month during which the event with retail sales 
was held. Any person who fails to file a report required by 
this Section commits a business offense and is subject to a 
fine not to exceed $250.
    Any person engaged in the business of selling tangible 
personal property at retail as a concessionaire or other type 
of seller at the Illinois State Fair, county fairs, art shows, 
flea markets, and similar exhibitions or events, or any 
transient merchants, as defined by Section 2 of the Transient 
Merchant Act of 1987, may be required to make a daily report of 
the amount of such sales to the Department and to make a daily 
payment of the full amount of tax due. The Department shall 
impose this requirement when it finds that there is a 
significant risk of loss of revenue to the State at such an 
exhibition or event. Such a finding shall be based on evidence 
that a substantial number of concessionaires or other sellers 
who are not residents of Illinois will be engaging in the 
business of selling tangible personal property at retail at 
the exhibition or event, or other evidence of a significant 
risk of loss of revenue to the State. The Department shall 
notify concessionaires and other sellers affected by the 
imposition of this requirement. In the absence of notification 
by the Department, the concessionaires and other sellers shall 
file their returns as otherwise required in this Section.
(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60, 
Section 60-30, eff. 4-19-22; 102-700, Article 65, Section 
65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff. 
1-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363, 
eff. 7-28-23; revised 9-27-23.)
 
    Section 75-25. The Innovation Development and Economy Act 
is amended by changing Section 31 as follows:
 
    (50 ILCS 470/31)
    Sec. 31. STAR bond occupation taxes. 
    (a) If the corporate authorities of a political 
subdivision have established a STAR bond district and have 
elected to impose a tax by ordinance pursuant to subsection 
(b) or (c) of this Section, each year after the date of the 
adoption of the ordinance and until all STAR bond project 
costs and all political subdivision obligations financing the 
STAR bond project costs, if any, have been paid in accordance 
with the STAR bond project plans, but in no event longer than 
the maximum maturity date of the last of the STAR bonds issued 
for projects in the STAR bond district, all amounts generated 
by the retailers' occupation tax and service occupation tax 
shall be collected and the tax shall be enforced by the 
Department of Revenue in the same manner as all retailers' 
occupation taxes and service occupation taxes imposed in the 
political subdivision imposing the tax. The corporate 
authorities of the political subdivision shall deposit the 
proceeds of the taxes imposed under subsections (b) and (c) 
into either (i) a special fund held by the corporate 
authorities of the political subdivision called the STAR Bonds 
Tax Allocation Fund for the purpose of paying STAR bond 
project costs and obligations incurred in the payment of those 
costs if such taxes are designated as pledged STAR revenues by 
resolution or ordinance of the political subdivision or (ii) 
the political subdivision's general corporate fund if such 
taxes are not designated as pledged STAR revenues by 
resolution or ordinance.
    The tax imposed under this Section by a municipality may 
be imposed only on the portion of a STAR bond district that is 
within the boundaries of the municipality. For any part of a 
STAR bond district that lies outside of the boundaries of that 
municipality, the municipality in which the other part of the 
STAR bond district lies (or the county, in cases where a 
portion of the STAR bond district lies in the unincorporated 
area of a county) is authorized to impose the tax under this 
Section on that part of the STAR bond district.
    (b) The corporate authorities of a political subdivision 
that has established a STAR bond district under this Act may, 
by ordinance or resolution, impose a STAR Bond Retailers' 
Occupation Tax upon all persons engaged in the business of 
selling tangible personal property, other than an item of 
tangible personal property titled or registered with an agency 
of this State's government, at retail in the STAR bond 
district at a rate not to exceed 1% of the gross receipts from 
the sales made in the course of that business, to be imposed 
only in 0.25% increments. The tax may not be imposed on 
tangible personal property taxed at the 1% rate under the 
Retailers' Occupation Tax Act (or at the 0% rate imposed under 
this amendatory Act of the 102nd General Assembly). Beginning 
December 1, 2019 and through December 31, 2020, this tax is not 
imposed on sales of aviation fuel unless the tax revenue is 
expended for airport-related purposes. If the District does 
not have an airport-related purpose to which aviation fuel tax 
revenue is dedicated, then aviation fuel is excluded from the 
tax. The municipality must comply with the certification 
requirements for airport-related purposes under Section 2-22 
of the Retailers' Occupation Tax Act. For purposes of this 
Act, "airport-related purposes" has the meaning ascribed in 
Section 6z-20.2 of the State Finance Act. Beginning January 1, 
2021, this tax is not imposed on sales of aviation fuel for so 
long as the revenue use requirements of 49 U.S.C. 47107(b) and 
49 U.S.C. 47133 are binding on the District.
    The tax imposed under this subsection and all civil 
penalties that may be assessed as an incident thereof shall be 
collected and enforced by the Department of Revenue. The 
certificate of registration that is issued by the Department 
to a retailer under the Retailers' Occupation Tax Act shall 
permit the retailer to engage in a business that is taxable 
under any ordinance or resolution enacted pursuant to this 
subsection without registering separately with the Department 
under such ordinance or resolution or under this subsection. 
The Department of Revenue shall have full power to administer 
and enforce this subsection, to collect all taxes and 
penalties due under this subsection in the manner hereinafter 
provided, and to determine all rights to credit memoranda 
arising on account of the erroneous payment of tax or penalty 
under this subsection. In the administration of, and 
compliance with, this subsection, the Department and persons 
who are subject to this subsection shall have the same rights, 
remedies, privileges, immunities, powers, and duties, and be 
subject to the same conditions, restrictions, limitations, 
penalties, exclusions, exemptions, and definitions of terms 
and employ the same modes of procedure, as are prescribed in 
Sections 1, 1a through 1o, 2 through 2-65 (in respect to all 
provisions therein other than the State rate of tax), 2c 
through 2h, 3 (except as to the disposition of taxes and 
penalties collected, and except that the retailer's discount 
is not allowed for taxes paid on aviation fuel that are subject 
to the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 
5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the 
Retailers' Occupation Tax Act and all provisions of the 
Uniform Penalty and Interest Act, as fully as if those 
provisions were set forth herein.
    If a tax is imposed under this subsection (b), a tax shall 
also be imposed under subsection (c) of this Section.
    (c) If a tax has been imposed under subsection (b), a STAR 
Bond Service Occupation Tax shall also be imposed upon all 
persons engaged, in the STAR bond district, in the business of 
making sales of service, who, as an incident to making those 
sales of service, transfer tangible personal property within 
the STAR bond district, either in the form of tangible 
personal property or in the form of real estate as an incident 
to a sale of service. The tax shall be imposed at the same rate 
as the tax imposed in subsection (b) and shall not exceed 1% of 
the selling price of tangible personal property so transferred 
within the STAR bond district, to be imposed only in 0.25% 
increments. The tax may not be imposed on tangible personal 
property taxed at the 1% rate under the Service Occupation Tax 
Act (or at the 0% rate imposed under this amendatory Act of the 
102nd General Assembly). Beginning December 1, 2019 and 
through December 31, 2020, this tax is not imposed on sales of 
aviation fuel unless the tax revenue is expended for 
airport-related purposes. If the District does not have an 
airport-related purpose to which aviation fuel tax revenue is 
dedicated, then aviation fuel is excluded from the tax. The 
municipality must comply with the certification requirements 
for airport-related purposes under Section 2-22 of the 
Retailers' Occupation Tax Act. For purposes of this Act, 
"airport-related purposes" has the meaning ascribed in Section 
6z-20.2 of the State Finance Act. Beginning January 1, 2021, 
this tax is not imposed on sales of aviation fuel for so long 
as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133 are binding on the District.
    The tax imposed under this subsection and all civil 
penalties that may be assessed as an incident thereof shall be 
collected and enforced by the Department of Revenue. The 
certificate of registration that is issued by the Department 
to a retailer under the Retailers' Occupation Tax Act or under 
the Service Occupation Tax Act shall permit the registrant to 
engage in a business that is taxable under any ordinance or 
resolution enacted pursuant to this subsection without 
registering separately with the Department under that 
ordinance or resolution or under this subsection. The 
Department of Revenue shall have full power to administer and 
enforce this subsection, to collect all taxes and penalties 
due under this subsection, to dispose of taxes and penalties 
so collected in the manner hereinafter provided, and to 
determine all rights to credit memoranda arising on account of 
the erroneous payment of tax or penalty under this subsection. 
In the administration of, and compliance with this subsection, 
the Department and persons who are subject to this subsection 
shall have the same rights, remedies, privileges, immunities, 
powers, and duties, and be subject to the same conditions, 
restrictions, limitations, penalties, exclusions, exemptions, 
and definitions of terms and employ the same modes of 
procedure as are prescribed in Sections 2, 2a through 2d, 3 
through 3-50 (in respect to all provisions therein other than 
the State rate of tax), 4 (except that the reference to the 
State shall be to the STAR bond district), 5, 7, 8 (except that 
the jurisdiction to which the tax shall be a debt to the extent 
indicated in that Section 8 shall be the political 
subdivision), 9 (except as to the disposition of taxes and 
penalties collected, and except that the returned merchandise 
credit for this tax may not be taken against any State tax, and 
except that the retailer's discount is not allowed for taxes 
paid on aviation fuel that are subject to the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 
11, 12 (except the reference therein to Section 2b of the 
Retailers' Occupation Tax Act), 13 (except that any reference 
to the State shall mean the political subdivision), the first 
paragraph of Section 15, and Sections 16, 17, 18, 19 and 20 of 
the Service Occupation Tax Act and all provisions of the 
Uniform Penalty and Interest Act, as fully as if those 
provisions were set forth herein.
    If a tax is imposed under this subsection (c), a tax shall 
also be imposed under subsection (b) of this Section.
    (c-5) If, on January 1, 2025, a unit of local government 
has in effect a tax under this Section, or if, after January 1, 
2025, a unit of local government imposes a tax under this 
Section, then that tax applies to leases of tangible personal 
property in effect, entered into, or renewed on or after that 
date in the same manner as the tax under this Section and in 
accordance with the changes made by this amendatory Act of the 
103rd General Assembly. 
    (d) Persons subject to any tax imposed under this Section 
may reimburse themselves for their seller's tax liability 
under this Section by separately stating the tax as an 
additional charge, which charge may be stated in combination, 
in a single amount, with State taxes that sellers are required 
to collect under the Use Tax Act, in accordance with such 
bracket schedules as the Department may prescribe.
    Whenever the Department determines that a refund should be 
made under this Section to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the order to be drawn for the 
amount specified and to the person named in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the STAR Bond Retailers' Occupation Tax Fund 
or the Local Government Aviation Trust Fund, as appropriate.
    Except as otherwise provided in this paragraph, the 
Department shall immediately pay over to the State Treasurer, 
ex officio, as trustee, all taxes, penalties, and interest 
collected under this Section for deposit into the STAR Bond 
Retailers' Occupation Tax Fund. Taxes and penalties collected 
on aviation fuel sold on or after December 1, 2019, shall be 
immediately paid over by the Department to the State 
Treasurer, ex officio, as trustee, for deposit into the Local 
Government Aviation Trust Fund. The Department shall only pay 
moneys into the Local Government Aviation Trust Fund under 
this Section for so long as the revenue use requirements of 49 
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
District. On or before the 25th day of each calendar month, the 
Department shall prepare and certify to the Comptroller the 
disbursement of stated sums of money to named political 
subdivisions from the STAR Bond Retailers' Occupation Tax 
Fund, the political subdivisions to be those from which 
retailers have paid taxes or penalties under this Section to 
the Department during the second preceding calendar month. The 
amount to be paid to each political subdivision shall be the 
amount (not including credit memoranda and not including taxes 
and penalties collected on aviation fuel sold on or after 
December 1, 2019) collected under this Section during the 
second preceding calendar month by the Department plus an 
amount the Department determines is necessary to offset any 
amounts that were erroneously paid to a different taxing body, 
and not including an amount equal to the amount of refunds made 
during the second preceding calendar month by the Department, 
less 3% of that amount, which shall be deposited into the Tax 
Compliance and Administration Fund and shall be used by the 
Department, subject to appropriation, to cover the costs of 
the Department in administering and enforcing the provisions 
of this Section, on behalf of such political subdivision, and 
not including any amount that the Department determines is 
necessary to offset any amounts that were payable to a 
different taxing body but were erroneously paid to the 
political subdivision. Within 10 days after receipt by the 
Comptroller of the disbursement certification to the political 
subdivisions provided for in this Section to be given to the 
Comptroller by the Department, the Comptroller shall cause the 
orders to be drawn for the respective amounts in accordance 
with the directions contained in the certification. The 
proceeds of the tax paid to political subdivisions under this 
Section shall be deposited into either (i) the STAR Bonds Tax 
Allocation Fund by the political subdivision if the political 
subdivision has designated them as pledged STAR revenues by 
resolution or ordinance or (ii) the political subdivision's 
general corporate fund if the political subdivision has not 
designated them as pledged STAR revenues.
    An ordinance or resolution imposing or discontinuing the 
tax under this Section or effecting a change in the rate 
thereof shall either (i) be adopted and a certified copy 
thereof filed with the Department on or before the first day of 
April, whereupon the Department, if all other requirements of 
this Section are met, shall proceed to administer and enforce 
this Section as of the first day of July next following the 
adoption and filing; or (ii) be adopted and a certified copy 
thereof filed with the Department on or before the first day of 
October, whereupon, if all other requirements of this Section 
are met, the Department shall proceed to administer and 
enforce this Section as of the first day of January next 
following the adoption and filing.
    The Department of Revenue shall not administer or enforce 
an ordinance imposing, discontinuing, or changing the rate of 
the tax under this Section until the political subdivision 
also provides, in the manner prescribed by the Department, the 
boundaries of the STAR bond district and each address in the 
STAR bond district in such a way that the Department can 
determine by its address whether a business is located in the 
STAR bond district. The political subdivision must provide 
this boundary and address information to the Department on or 
before April 1 for administration and enforcement of the tax 
under this Section by the Department beginning on the 
following July 1 and on or before October 1 for administration 
and enforcement of the tax under this Section by the 
Department beginning on the following January 1. The 
Department of Revenue shall not administer or enforce any 
change made to the boundaries of a STAR bond district or any 
address change, addition, or deletion until the political 
subdivision reports the boundary change or address change, 
addition, or deletion to the Department in the manner 
prescribed by the Department. The political subdivision must 
provide this boundary change or address change, addition, or 
deletion information to the Department on or before April 1 
for administration and enforcement by the Department of the 
change, addition, or deletion beginning on the following July 
1 and on or before October 1 for administration and 
enforcement by the Department of the change, addition, or 
deletion beginning on the following January 1. The retailers 
in the STAR bond district shall be responsible for charging 
the tax imposed under this Section. If a retailer is 
incorrectly included or excluded from the list of those 
required to collect the tax under this Section, both the 
Department of Revenue and the retailer shall be held harmless 
if they reasonably relied on information provided by the 
political subdivision.
    A political subdivision that imposes the tax under this 
Section must submit to the Department of Revenue any other 
information as the Department may require that is necessary 
for the administration and enforcement of the tax.
    When certifying the amount of a monthly disbursement to a 
political subdivision under this Section, the Department shall 
increase or decrease the amount by an amount necessary to 
offset any misallocation of previous disbursements. The offset 
amount shall be the amount erroneously disbursed within the 
previous 6 months from the time a misallocation is discovered.
    Nothing in this Section shall be construed to authorize 
the political subdivision to impose a tax upon the privilege 
of engaging in any business which under the Constitution of 
the United States may not be made the subject of taxation by 
this State.
    (e) When STAR bond project costs, including, without 
limitation, all political subdivision obligations financing 
STAR bond project costs, have been paid, any surplus funds 
then remaining in the STAR Bonds Tax Allocation Fund shall be 
distributed to the treasurer of the political subdivision for 
deposit into the political subdivision's general corporate 
fund. Upon payment of all STAR bond project costs and 
retirement of obligations, but in no event later than the 
maximum maturity date of the last of the STAR bonds issued in 
the STAR bond district, the political subdivision shall adopt 
an ordinance immediately rescinding the taxes imposed pursuant 
to this Section and file a certified copy of the ordinance with 
the Department in the form and manner as described in this 
Section.
(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19; 
102-700, eff. 4-19-22.)
 
    Section 75-30. The Counties Code is amended by changing 
Sections 5-1006, 5-1006.5, 5-1006.7, 5-1007, and 5-1008.5 as 
follows:
 
    (55 ILCS 5/5-1006)  (from Ch. 34, par. 5-1006)
    Sec. 5-1006. Home Rule County Retailers' Occupation Tax 
Law. Any county that is a home rule unit may impose a tax upon 
all persons engaged in the business of selling tangible 
personal property, other than an item of tangible personal 
property titled or registered with an agency of this State's 
government, at retail in the county on the gross receipts from 
such sales made in the course of their business. If imposed, 
this tax shall only be imposed in 1/4% increments. On and after 
September 1, 1991, this additional tax may not be imposed on 
tangible personal property taxed at the 1% rate under the 
Retailers' Occupation Tax Act (or at the 0% rate imposed under 
this amendatory Act of the 102nd General Assembly). Beginning 
December 1, 2019, this tax is not imposed on sales of aviation 
fuel unless the tax revenue is expended for airport-related 
purposes. If the county does not have an airport-related 
purpose to which it dedicates aviation fuel tax revenue, then 
aviation fuel is excluded from the tax. The county must comply 
with the certification requirements for airport-related 
purposes under Section 2-22 of the Retailers' Occupation Tax 
Act. For purposes of this Section, "airport-related purposes" 
has the meaning ascribed in Section 6z-20.2 of the State 
Finance Act. This exclusion for aviation fuel only applies for 
so long as the revenue use requirements of 49 U.S.C. 47107(b) 
and 49 U.S.C. 47133 are binding on the county. The changes made 
to this Section by this amendatory Act of the 101st General 
Assembly are a denial and limitation of home rule powers and 
functions under subsection (g) of Section 6 of Article VII of 
the Illinois Constitution. 
    If, on January 1, 2025, a unit of local government has in 
effect a tax under this Section, or if, after January 1, 2025, 
a unit of local government imposes a tax under this Section, 
then that tax applies to leases of tangible personal property 
in effect, entered into, or renewed on or after that date in 
the same manner as the tax under this Section and in accordance 
with the changes made by this amendatory Act of the 103rd 
General Assembly. 
    The tax imposed by a home rule county pursuant to this 
Section and all civil penalties that may be assessed as an 
incident thereof shall be collected and enforced by the State 
Department of Revenue. The certificate of registration that is 
issued by the Department to a retailer under the Retailers' 
Occupation Tax Act shall permit the retailer to engage in a 
business that is taxable under any ordinance or resolution 
enacted pursuant to this Section without registering 
separately with the Department under such ordinance or 
resolution or under this Section. The Department shall have 
full power to administer and enforce this Section; to collect 
all taxes and penalties due hereunder; to dispose of taxes and 
penalties so collected in the manner hereinafter provided; and 
to determine all rights to credit memoranda arising on account 
of the erroneous payment of tax or penalty hereunder. In the 
administration of, and compliance with, this Section, the 
Department and persons who are subject to this Section shall 
have the same rights, remedies, privileges, immunities, powers 
and duties, and be subject to the same conditions, 
restrictions, limitations, penalties and definitions of terms, 
and employ the same modes of procedure, as are prescribed in 
Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 
2-65 (in respect to all provisions therein other than the 
State rate of tax), 3 (except as to the disposition of taxes 
and penalties collected, and except that the retailer's 
discount is not allowed for taxes paid on aviation fuel that 
are subject to the revenue use requirements of 49 U.S.C. 
47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 
5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 
and 13 of the Retailers' Occupation Tax Act and Section 3-7 of 
the Uniform Penalty and Interest Act, as fully as if those 
provisions were set forth herein.
    No tax may be imposed by a home rule county pursuant to 
this Section unless the county also imposes a tax at the same 
rate pursuant to Section 5-1007.
    Persons subject to any tax imposed pursuant to the 
authority granted in this Section may reimburse themselves for 
their seller's tax liability hereunder by separately stating 
such tax as an additional charge, which charge may be stated in 
combination, in a single amount, with State tax which sellers 
are required to collect under the Use Tax Act, pursuant to such 
bracket schedules as the Department may prescribe.
    Whenever the Department determines that a refund should be 
made under this Section to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the order to be drawn for the 
amount specified and to the person named in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the home rule county retailers' occupation 
tax fund or the Local Government Aviation Trust Fund, as 
appropriate.
    Except as otherwise provided in this paragraph, the 
Department shall forthwith pay over to the State Treasurer, ex 
officio, as trustee, all taxes and penalties collected 
hereunder for deposit into the Home Rule County Retailers' 
Occupation Tax Fund. Taxes and penalties collected on aviation 
fuel sold on or after December 1, 2019, shall be immediately 
paid over by the Department to the State Treasurer, ex 
officio, as trustee, for deposit into the Local Government 
Aviation Trust Fund. The Department shall only pay moneys into 
the Local Government Aviation Trust Fund under this Section 
for so long as the revenue use requirements of 49 U.S.C. 
47107(b) and 49 U.S.C. 47133 are binding on the county. 
    As soon as possible after the first day of each month, 
beginning January 1, 2011, upon certification of the 
Department of Revenue, the Comptroller shall order 
transferred, and the Treasurer shall transfer, to the STAR 
Bonds Revenue Fund the local sales tax increment, as defined 
in the Innovation Development and Economy Act, collected under 
this Section during the second preceding calendar month for 
sales within a STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund, 
on or before the 25th day of each calendar month, the 
Department shall prepare and certify to the Comptroller the 
disbursement of stated sums of money to named counties, the 
counties to be those from which retailers have paid taxes or 
penalties hereunder to the Department during the second 
preceding calendar month. The amount to be paid to each county 
shall be the amount (not including credit memoranda and not 
including taxes and penalties collected on aviation fuel sold 
on or after December 1, 2019) collected hereunder during the 
second preceding calendar month by the Department plus an 
amount the Department determines is necessary to offset any 
amounts that were erroneously paid to a different taxing body, 
and not including an amount equal to the amount of refunds made 
during the second preceding calendar month by the Department 
on behalf of such county, and not including any amount which 
the Department determines is necessary to offset any amounts 
which were payable to a different taxing body but were 
erroneously paid to the county, and not including any amounts 
that are transferred to the STAR Bonds Revenue Fund, less 1.5% 
of the remainder, which the Department shall transfer into the 
Tax Compliance and Administration Fund. The Department, at the 
time of each monthly disbursement to the counties, shall 
prepare and certify to the State Comptroller the amount to be 
transferred into the Tax Compliance and Administration Fund 
under this Section. Within 10 days after receipt, by the 
Comptroller, of the disbursement certification to the counties 
and the Tax Compliance and Administration Fund provided for in 
this Section to be given to the Comptroller by the Department, 
the Comptroller shall cause the orders to be drawn for the 
respective amounts in accordance with the directions contained 
in the certification. 
    In addition to the disbursement required by the preceding 
paragraph, an allocation shall be made in March of each year to 
each county that received more than $500,000 in disbursements 
under the preceding paragraph in the preceding calendar year. 
The allocation shall be in an amount equal to the average 
monthly distribution made to each such county under the 
preceding paragraph during the preceding calendar year 
(excluding the 2 months of highest receipts). The distribution 
made in March of each year subsequent to the year in which an 
allocation was made pursuant to this paragraph and the 
preceding paragraph shall be reduced by the amount allocated 
and disbursed under this paragraph in the preceding calendar 
year. The Department shall prepare and certify to the 
Comptroller for disbursement the allocations made in 
accordance with this paragraph.
    For the purpose of determining the local governmental unit 
whose tax is applicable, a retail sale by a producer of coal or 
other mineral mined in Illinois is a sale at retail at the 
place where the coal or other mineral mined in Illinois is 
extracted from the earth. This paragraph does not apply to 
coal or other mineral when it is delivered or shipped by the 
seller to the purchaser at a point outside Illinois so that the 
sale is exempt under the United States Constitution as a sale 
in interstate or foreign commerce.
    Nothing in this Section shall be construed to authorize a 
county to impose a tax upon the privilege of engaging in any 
business which under the Constitution of the United States may 
not be made the subject of taxation by this State.
    An ordinance or resolution imposing or discontinuing a tax 
hereunder or effecting a change in the rate thereof shall be 
adopted and a certified copy thereof filed with the Department 
on or before the first day of June, whereupon the Department 
shall proceed to administer and enforce this Section as of the 
first day of September next following such adoption and 
filing. Beginning January 1, 1992, an ordinance or resolution 
imposing or discontinuing the tax hereunder or effecting a 
change in the rate thereof shall be adopted and a certified 
copy thereof filed with the Department on or before the first 
day of July, whereupon the Department shall proceed to 
administer and enforce this Section as of the first day of 
October next following such adoption and filing. Beginning 
January 1, 1993, an ordinance or resolution imposing or 
discontinuing the tax hereunder or effecting a change in the 
rate thereof shall be adopted and a certified copy thereof 
filed with the Department on or before the first day of 
October, whereupon the Department shall proceed to administer 
and enforce this Section as of the first day of January next 
following such adoption and filing. Beginning April 1, 1998, 
an ordinance or resolution imposing or discontinuing the tax 
hereunder or effecting a change in the rate thereof shall 
either (i) be adopted and a certified copy thereof filed with 
the Department on or before the first day of April, whereupon 
the Department shall proceed to administer and enforce this 
Section as of the first day of July next following the adoption 
and filing; or (ii) be adopted and a certified copy thereof 
filed with the Department on or before the first day of 
October, whereupon the Department shall proceed to administer 
and enforce this Section as of the first day of January next 
following the adoption and filing.
    When certifying the amount of a monthly disbursement to a 
county under this Section, the Department shall increase or 
decrease such amount by an amount necessary to offset any 
misallocation of previous disbursements. The offset amount 
shall be the amount erroneously disbursed within the previous 
6 months from the time a misallocation is discovered.
    This Section shall be known and may be cited as the Home 
Rule County Retailers' Occupation Tax Law.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
    (55 ILCS 5/5-1006.5)
    Sec. 5-1006.5. Special County Retailers' Occupation Tax 
For Public Safety, Public Facilities, Mental Health, Substance 
Abuse, or Transportation.
    (a) The county board of any county may impose a tax upon 
all persons engaged in the business of selling tangible 
personal property, other than personal property titled or 
registered with an agency of this State's government, at 
retail in the county on the gross receipts from the sales made 
in the course of business to provide revenue to be used 
exclusively for public safety, public facility, mental health, 
substance abuse, or transportation purposes in that county 
(except as otherwise provided in this Section), if a 
proposition for the tax has been submitted to the electors of 
that county and approved by a majority of those voting on the 
question. If imposed, this tax shall be imposed only in 
one-quarter percent increments. By resolution, the county 
board may order the proposition to be submitted at any 
election. If the tax is imposed for transportation purposes 
for expenditures for public highways or as authorized under 
the Illinois Highway Code, the county board must publish 
notice of the existence of its long-range highway 
transportation plan as required or described in Section 5-301 
of the Illinois Highway Code and must make the plan publicly 
available prior to approval of the ordinance or resolution 
imposing the tax. If the tax is imposed for transportation 
purposes for expenditures for passenger rail transportation, 
the county board must publish notice of the existence of its 
long-range passenger rail transportation plan and must make 
the plan publicly available prior to approval of the ordinance 
or resolution imposing the tax. 
    If a tax is imposed for public facilities purposes, then 
the name of the project may be included in the proposition at 
the discretion of the county board as determined in the 
enabling resolution. For example, the "XXX Nursing Home" or 
the "YYY Museum". 
    The county clerk shall certify the question to the proper 
election authority, who shall submit the proposition at an 
election in accordance with the general election law.
        (1) The proposition for public safety purposes shall 
    be in substantially the following form:
        "To pay for public safety purposes, shall (name of 
    county) be authorized to impose an increase on its share 
    of local sales taxes by (insert rate)?"
        As additional information on the ballot below the 
    question shall appear the following:
        "This would mean that a consumer would pay an 
    additional (insert amount) in sales tax for every $100 of 
    tangible personal property bought at retail." 
        The county board may also opt to establish a sunset 
    provision at which time the additional sales tax would 
    cease being collected, if not terminated earlier by a vote 
    of the county board. If the county board votes to include a 
    sunset provision, the proposition for public safety 
    purposes shall be in substantially the following form:
        "To pay for public safety purposes, shall (name of 
    county) be authorized to impose an increase on its share 
    of local sales taxes by (insert rate) for a period not to 
    exceed (insert number of years)?"
        As additional information on the ballot below the 
    question shall appear the following:
        "This would mean that a consumer would pay an 
    additional (insert amount) in sales tax for every $100 of 
    tangible personal property bought at retail. If imposed, 
    the additional tax would cease being collected at the end 
    of (insert number of years), if not terminated earlier by 
    a vote of the county board." 
        For the purposes of the paragraph, "public safety 
    purposes" means crime prevention, detention, fire 
    fighting, police, medical, ambulance, or other emergency 
    services.
        Votes shall be recorded as "Yes" or "No".
        Beginning on the January 1 or July 1, whichever is 
    first, that occurs not less than 30 days after May 31, 2015 
    (the effective date of Public Act 99-4), Adams County may 
    impose a public safety retailers' occupation tax and 
    service occupation tax at the rate of 0.25%, as provided 
    in the referendum approved by the voters on April 7, 2015, 
    notwithstanding the omission of the additional information 
    that is otherwise required to be printed on the ballot 
    below the question pursuant to this item (1). 
        (2) The proposition for transportation purposes shall 
    be in substantially the following form:
        "To pay for improvements to roads and other 
    transportation purposes, shall (name of county) be 
    authorized to impose an increase on its share of local 
    sales taxes by (insert rate)?"
        As additional information on the ballot below the 
    question shall appear the following:
        "This would mean that a consumer would pay an 
    additional (insert amount) in sales tax for every $100 of 
    tangible personal property bought at retail." 
        The county board may also opt to establish a sunset 
    provision at which time the additional sales tax would 
    cease being collected, if not terminated earlier by a vote 
    of the county board. If the county board votes to include a 
    sunset provision, the proposition for transportation 
    purposes shall be in substantially the following form:
        "To pay for road improvements and other transportation 
    purposes, shall (name of county) be authorized to impose 
    an increase on its share of local sales taxes by (insert 
    rate) for a period not to exceed (insert number of 
    years)?"
        As additional information on the ballot below the 
    question shall appear the following:
        "This would mean that a consumer would pay an 
    additional (insert amount) in sales tax for every $100 of 
    tangible personal property bought at retail. If imposed, 
    the additional tax would cease being collected at the end 
    of (insert number of years), if not terminated earlier by 
    a vote of the county board." 
        For the purposes of this paragraph, transportation 
    purposes means construction, maintenance, operation, and 
    improvement of public highways, any other purpose for 
    which a county may expend funds under the Illinois Highway 
    Code, and passenger rail transportation.
        The votes shall be recorded as "Yes" or "No".
        (3) The proposition for public facilities purposes 
    shall be in substantially the following form: 
        "To pay for public facilities purposes, shall (name of 
    county) be authorized to impose an increase on its share 
    of local sales taxes by (insert rate)?" 
        As additional information on the ballot below the 
    question shall appear the following: 
        "This would mean that a consumer would pay an 
    additional (insert amount) in sales tax for every $100 of 
    tangible personal property bought at retail." 
        The county board may also opt to establish a sunset 
    provision at which time the additional sales tax would 
    cease being collected, if not terminated earlier by a vote 
    of the county board. If the county board votes to include a 
    sunset provision, the proposition for public facilities 
    purposes shall be in substantially the following form: 
        "To pay for public facilities purposes, shall (name of 
    county) be authorized to impose an increase on its share 
    of local sales taxes by (insert rate) for a period not to 
    exceed (insert number of years)?" 
        As additional information on the ballot below the 
    question shall appear the following: 
        "This would mean that a consumer would pay an 
    additional (insert amount) in sales tax for every $100 of 
    tangible personal property bought at retail. If imposed, 
    the additional tax would cease being collected at the end 
    of (insert number of years), if not terminated earlier by 
    a vote of the county board." 
        For purposes of this Section, "public facilities 
    purposes" means the acquisition, development, 
    construction, reconstruction, rehabilitation, 
    improvement, financing, architectural planning, and 
    installation of capital facilities consisting of 
    buildings, structures, and durable equipment and for the 
    acquisition and improvement of real property and interest 
    in real property required, or expected to be required, in 
    connection with the public facilities, for use by the 
    county for the furnishing of governmental services to its 
    citizens, including, but not limited to, museums and 
    nursing homes. 
        The votes shall be recorded as "Yes" or "No". 
        (4) The proposition for mental health purposes shall 
    be in substantially the following form:
        "To pay for mental health purposes, shall (name of 
    county) be authorized to impose an increase on its share 
    of local sales taxes by (insert rate)?"
        As additional information on the ballot below the 
    question shall appear the following:
        "This would mean that a consumer would pay an 
    additional (insert amount) in sales tax for every $100 of 
    tangible personal property bought at retail."
        The county board may also opt to establish a sunset 
    provision at which time the additional sales tax would 
    cease being collected, if not terminated earlier by a vote 
    of the county board. If the county board votes to include a 
    sunset provision, the proposition for public facilities 
    purposes shall be in substantially the following form:
        "To pay for mental health purposes, shall (name of 
    county) be authorized to impose an increase on its share 
    of local sales taxes by (insert rate) for a period not to 
    exceed (insert number of years)?"
        As additional information on the ballot below the 
    question shall appear the following:
        "This would mean that a consumer would pay an 
    additional (insert amount) in sales tax for every $100 of 
    tangible personal property bought at retail. If imposed, 
    the additional tax would cease being collected at the end 
    of (insert number of years), if not terminated earlier by 
    a vote of the county board."
        The votes shall be recorded as "Yes" or "No". 
        (5) The proposition for substance abuse purposes shall 
    be in substantially the following form:
        "To pay for substance abuse purposes, shall (name of 
    county) be authorized to impose an increase on its share 
    of local sales taxes by (insert rate)?"
        As additional information on the ballot below the 
    question shall appear the following:
        "This would mean that a consumer would pay an 
    additional (insert amount) in sales tax for every $100 of 
    tangible personal property bought at retail."
        The county board may also opt to establish a sunset 
    provision at which time the additional sales tax would 
    cease being collected, if not terminated earlier by a vote 
    of the county board. If the county board votes to include a 
    sunset provision, the proposition for public facilities 
    purposes shall be in substantially the following form:
        "To pay for substance abuse purposes, shall (name of 
    county) be authorized to impose an increase on its share 
    of local sales taxes by (insert rate) for a period not to 
    exceed (insert number of years)?"
        As additional information on the ballot below the 
    question shall appear the following:
        "This would mean that a consumer would pay an 
    additional (insert amount) in sales tax for every $100 of 
    tangible personal property bought at retail. If imposed, 
    the additional tax would cease being collected at the end 
    of (insert number of years), if not terminated earlier by 
    a vote of the county board."
        The votes shall be recorded as "Yes" or "No". 
    If a majority of the electors voting on the proposition 
vote in favor of it, the county may impose the tax. A county 
may not submit more than one proposition authorized by this 
Section to the electors at any one time.
    This additional tax may not be imposed on tangible 
personal property taxed at the 1% rate under the Retailers' 
Occupation Tax Act (or at the 0% rate imposed under this 
amendatory Act of the 102nd General Assembly). Beginning 
December 1, 2019 and through December 31, 2020, this tax is not 
imposed on sales of aviation fuel unless the tax revenue is 
expended for airport-related purposes. If the county does not 
have an airport-related purpose to which it dedicates aviation 
fuel tax revenue, then aviation fuel is excluded from the tax. 
The county must comply with the certification requirements for 
airport-related purposes under Section 2-22 of the Retailers' 
Occupation Tax Act. For purposes of this Section, 
"airport-related purposes" has the meaning ascribed in Section 
6z-20.2 of the State Finance Act. Beginning January 1, 2021, 
this tax is not imposed on sales of aviation fuel for so long 
as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133 are binding on the county. The tax imposed by a 
county under this Section and all civil penalties that may be 
assessed as an incident of the tax shall be collected and 
enforced by the Illinois Department of Revenue and deposited 
into a special fund created for that purpose. The certificate 
of registration that is issued by the Department to a retailer 
under the Retailers' Occupation Tax Act shall permit the 
retailer to engage in a business that is taxable without 
registering separately with the Department under an ordinance 
or resolution under this Section. The Department has full 
power to administer and enforce this Section, to collect all 
taxes and penalties due under this Section, to dispose of 
taxes and penalties so collected in the manner provided in 
this Section, and to determine all rights to credit memoranda 
arising on account of the erroneous payment of a tax or penalty 
under this Section. In the administration of and compliance 
with this Section, the Department and persons who are subject 
to this Section shall (i) have the same rights, remedies, 
privileges, immunities, powers, and duties, (ii) be subject to 
the same conditions, restrictions, limitations, penalties, and 
definitions of terms, and (iii) employ the same modes of 
procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 
1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-70 (in respect to all 
provisions contained in those Sections other than the State 
rate of tax), 2a, 2b, 2c, 3 (except provisions relating to 
transaction returns and quarter monthly payments, and except 
that the retailer's discount is not allowed for taxes paid on 
aviation fuel that are deposited into the Local Government 
Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 
5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 
of the Retailers' Occupation Tax Act and Section 3-7 of the 
Uniform Penalty and Interest Act as if those provisions were 
set forth in this Section.
    Persons subject to any tax imposed under the authority 
granted in this Section may reimburse themselves for their 
sellers' tax liability by separately stating the tax as an 
additional charge, which charge may be stated in combination, 
in a single amount, with State tax which sellers are required 
to collect under the Use Tax Act, pursuant to such bracketed 
schedules as the Department may prescribe.
    Whenever the Department determines that a refund should be 
made under this Section to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the order to be drawn for the 
amount specified and to the person named in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the County Public Safety, Public Facilities, 
Mental Health, Substance Abuse, or Transportation Retailers' 
Occupation Tax Fund or the Local Government Aviation Trust 
Fund, as appropriate. 
    (b) If a tax has been imposed under subsection (a), a 
service occupation tax shall also be imposed at the same rate 
upon all persons engaged, in the county, in the business of 
making sales of service, who, as an incident to making those 
sales of service, transfer tangible personal property within 
the county as an incident to a sale of service. This tax may 
not be imposed on tangible personal property taxed at the 1% 
rate under the Service Occupation Tax Act (or at the 0% rate 
imposed under this amendatory Act of the 102nd General 
Assembly). Beginning December 1, 2019 and through December 31, 
2020, this tax is not imposed on sales of aviation fuel unless 
the tax revenue is expended for airport-related purposes. If 
the county does not have an airport-related purpose to which 
it dedicates aviation fuel tax revenue, then aviation fuel is 
excluded from the tax. The county must comply with the 
certification requirements for airport-related purposes under 
Section 2-22 of the Retailers' Occupation Tax Act. For 
purposes of this Section, "airport-related purposes" has the 
meaning ascribed in Section 6z-20.2 of the State Finance Act. 
Beginning January 1, 2021, this tax is not imposed on sales of 
aviation fuel for so long as the revenue use requirements of 49 
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county. 
The tax imposed under this subsection and all civil penalties 
that may be assessed as an incident thereof shall be collected 
and enforced by the Department of Revenue. The Department has 
full power to administer and enforce this subsection; to 
collect all taxes and penalties due hereunder; to dispose of 
taxes and penalties so collected in the manner hereinafter 
provided; and to determine all rights to credit memoranda 
arising on account of the erroneous payment of tax or penalty 
hereunder. In the administration of and compliance with this 
subsection, the Department and persons who are subject to this 
paragraph shall (i) have the same rights, remedies, 
privileges, immunities, powers, and duties, (ii) be subject to 
the same conditions, restrictions, limitations, penalties, 
exclusions, exemptions, and definitions of terms, and (iii) 
employ the same modes of procedure as are prescribed in 
Sections 2 (except that the reference to State in the 
definition of supplier maintaining a place of business in this 
State shall mean the county), 2a, 2b, 2c, 3 through 3-50 (in 
respect to all provisions therein other than the State rate of 
tax), 4 (except that the reference to the State shall be to the 
county), 5, 7, 8 (except that the jurisdiction to which the tax 
shall be a debt to the extent indicated in that Section 8 shall 
be the county), 9 (except as to the disposition of taxes and 
penalties collected, and except that the retailer's discount 
is not allowed for taxes paid on aviation fuel that are 
deposited into the Local Government Aviation Trust Fund), 10, 
11, 12 (except the reference therein to Section 2b of the 
Retailers' Occupation Tax Act), 13 (except that any reference 
to the State shall mean the county), Section 15, 16, 17, 18, 
19, and 20 of the Service Occupation Tax Act, and Section 3-7 
of the Uniform Penalty and Interest Act, as fully as if those 
provisions were set forth herein.
    Persons subject to any tax imposed under the authority 
granted in this subsection may reimburse themselves for their 
serviceman's tax liability by separately stating the tax as an 
additional charge, which charge may be stated in combination, 
in a single amount, with State tax that servicemen are 
authorized to collect under the Service Use Tax Act, in 
accordance with such bracket schedules as the Department may 
prescribe.
    Whenever the Department determines that a refund should be 
made under this subsection to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the warrant to be drawn for the 
amount specified, and to the person named, in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the County Public Safety, Public Facilities, 
Mental Health, Substance Abuse, or Transportation Retailers' 
Occupation Fund or the Local Government Aviation Trust Fund, 
as appropriate.
    Nothing in this subsection shall be construed to authorize 
the county to impose a tax upon the privilege of engaging in 
any business which under the Constitution of the United States 
may not be made the subject of taxation by the State.
    (b-5) If, on January 1, 2025, a unit of local government 
has in effect a tax under this Section, or if, after January 1, 
2025, a unit of local government imposes a tax under this 
Section, then that tax applies to leases of tangible personal 
property in effect, entered into, or renewed on or after that 
date in the same manner as the tax under this Section and in 
accordance with the changes made by this amendatory Act of the 
103rd General Assembly. 
    (c) Except as otherwise provided in this paragraph, the 
Department shall immediately pay over to the State Treasurer, 
ex officio, as trustee, all taxes and penalties collected 
under this Section to be deposited into the County Public 
Safety, Public Facilities, Mental Health, Substance Abuse, or 
Transportation Retailers' Occupation Tax Fund, which shall be 
an unappropriated trust fund held outside of the State 
treasury. Taxes and penalties collected on aviation fuel sold 
on or after December 1, 2019 and through December 31, 2020, 
shall be immediately paid over by the Department to the State 
Treasurer, ex officio, as trustee, for deposit into the Local 
Government Aviation Trust Fund. The Department shall only pay 
moneys into the Local Government Aviation Trust Fund under 
this Act for so long as the revenue use requirements of 49 
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county. 
    As soon as possible after the first day of each month, 
beginning January 1, 2011, upon certification of the 
Department of Revenue, the Comptroller shall order 
transferred, and the Treasurer shall transfer, to the STAR 
Bonds Revenue Fund the local sales tax increment, as defined 
in the Innovation Development and Economy Act, collected under 
this Section during the second preceding calendar month for 
sales within a STAR bond district. 
    After the monthly transfer to the STAR Bonds Revenue Fund, 
on or before the 25th day of each calendar month, the 
Department shall prepare and certify to the Comptroller the 
disbursement of stated sums of money to the counties from 
which retailers have paid taxes or penalties to the Department 
during the second preceding calendar month. The amount to be 
paid to each county, and deposited by the county into its 
special fund created for the purposes of this Section, shall 
be the amount (not including credit memoranda and not 
including taxes and penalties collected on aviation fuel sold 
on or after December 1, 2019 and through December 31, 2020) 
collected under this Section during the second preceding 
calendar month by the Department plus an amount the Department 
determines is necessary to offset any amounts that were 
erroneously paid to a different taxing body, and not including 
(i) an amount equal to the amount of refunds made during the 
second preceding calendar month by the Department on behalf of 
the county, (ii) any amount that the Department determines is 
necessary to offset any amounts that were payable to a 
different taxing body but were erroneously paid to the county, 
(iii) any amounts that are transferred to the STAR Bonds 
Revenue Fund, and (iv) 1.5% of the remainder, which shall be 
transferred into the Tax Compliance and Administration Fund. 
The Department, at the time of each monthly disbursement to 
the counties, shall prepare and certify to the State 
Comptroller the amount to be transferred into the Tax 
Compliance and Administration Fund under this subsection. 
Within 10 days after receipt by the Comptroller of the 
disbursement certification to the counties and the Tax 
Compliance and Administration Fund provided for in this 
Section to be given to the Comptroller by the Department, the 
Comptroller shall cause the orders to be drawn for the 
respective amounts in accordance with directions contained in 
the certification.
    In addition to the disbursement required by the preceding 
paragraph, an allocation shall be made in March of each year to 
each county that received more than $500,000 in disbursements 
under the preceding paragraph in the preceding calendar year. 
The allocation shall be in an amount equal to the average 
monthly distribution made to each such county under the 
preceding paragraph during the preceding calendar year 
(excluding the 2 months of highest receipts). The distribution 
made in March of each year subsequent to the year in which an 
allocation was made pursuant to this paragraph and the 
preceding paragraph shall be reduced by the amount allocated 
and disbursed under this paragraph in the preceding calendar 
year. The Department shall prepare and certify to the 
Comptroller for disbursement the allocations made in 
accordance with this paragraph.
    (d) For the purpose of determining the local governmental 
unit whose tax is applicable, a retail sale by a producer of 
coal or another mineral mined in Illinois is a sale at retail 
at the place where the coal or other mineral mined in Illinois 
is extracted from the earth. This paragraph does not apply to 
coal or another mineral when it is delivered or shipped by the 
seller to the purchaser at a point outside Illinois so that the 
sale is exempt under the United States Constitution as a sale 
in interstate or foreign commerce.
    (e) Nothing in this Section shall be construed to 
authorize a county to impose a tax upon the privilege of 
engaging in any business that under the Constitution of the 
United States may not be made the subject of taxation by this 
State.
    (e-5) If a county imposes a tax under this Section, the 
county board may, by ordinance, discontinue or lower the rate 
of the tax. If the county board lowers the tax rate or 
discontinues the tax, a referendum must be held in accordance 
with subsection (a) of this Section in order to increase the 
rate of the tax or to reimpose the discontinued tax.
    (f) Beginning April 1, 1998 and through December 31, 2013, 
the results of any election authorizing a proposition to 
impose a tax under this Section or effecting a change in the 
rate of tax, or any ordinance lowering the rate or 
discontinuing the tax, shall be certified by the county clerk 
and filed with the Illinois Department of Revenue either (i) 
on or before the first day of April, whereupon the Department 
shall proceed to administer and enforce the tax as of the first 
day of July next following the filing; or (ii) on or before the 
first day of October, whereupon the Department shall proceed 
to administer and enforce the tax as of the first day of 
January next following the filing.
    Beginning January 1, 2014, the results of any election 
authorizing a proposition to impose a tax under this Section 
or effecting an increase in the rate of tax, along with the 
ordinance adopted to impose the tax or increase the rate of the 
tax, or any ordinance adopted to lower the rate or discontinue 
the tax, shall be certified by the county clerk and filed with 
the Illinois Department of Revenue either (i) on or before the 
first day of May, whereupon the Department shall proceed to 
administer and enforce the tax as of the first day of July next 
following the adoption and filing; or (ii) on or before the 
first day of October, whereupon the Department shall proceed 
to administer and enforce the tax as of the first day of 
January next following the adoption and filing. 
    (g) When certifying the amount of a monthly disbursement 
to a county under this Section, the Department shall increase 
or decrease the amounts by an amount necessary to offset any 
miscalculation of previous disbursements. The offset amount 
shall be the amount erroneously disbursed within the previous 
6 months from the time a miscalculation is discovered.
    (g-5) Every county authorized to levy a tax under this 
Section shall, before it levies such tax, establish a 7-member 
mental health board, which shall have the same powers and 
duties and be constituted in the same manner as a community 
mental health board established under the Community Mental 
Health Act. Proceeds of the tax under this Section that are 
earmarked for mental health or substance abuse purposes shall 
be deposited into a special county occupation tax fund for 
mental health and substance abuse. The 7-member mental health 
board established under this subsection shall administer the 
special county occupation tax fund for mental health and 
substance abuse in the same manner as the community mental 
health board administers the community mental health fund 
under the Community Mental Health Act. 
    (h) This Section may be cited as the "Special County 
Occupation Tax For Public Safety, Public Facilities, Mental 
Health, Substance Abuse, or Transportation Law".
    (i) For purposes of this Section, "public safety" 
includes, but is not limited to, crime prevention, detention, 
fire fighting, police, medical, ambulance, or other emergency 
services. The county may share tax proceeds received under 
this Section for public safety purposes, including proceeds 
received before August 4, 2009 (the effective date of Public 
Act 96-124), with any fire protection district located in the 
county. For the purposes of this Section, "transportation" 
includes, but is not limited to, the construction, 
maintenance, operation, and improvement of public highways, 
any other purpose for which a county may expend funds under the 
Illinois Highway Code, and passenger rail transportation. For 
the purposes of this Section, "public facilities purposes" 
includes, but is not limited to, the acquisition, development, 
construction, reconstruction, rehabilitation, improvement, 
financing, architectural planning, and installation of capital 
facilities consisting of buildings, structures, and durable 
equipment and for the acquisition and improvement of real 
property and interest in real property required, or expected 
to be required, in connection with the public facilities, for 
use by the county for the furnishing of governmental services 
to its citizens, including, but not limited to, museums and 
nursing homes.
    (j) The Department may promulgate rules to implement 
Public Act 95-1002 only to the extent necessary to apply the 
existing rules for the Special County Retailers' Occupation 
Tax for Public Safety to this new purpose for public 
facilities. 
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
101-275, eff. 8-9-19; 101-604, eff. 12-13-19; 102-379, eff. 
1-1-22; 102-700, eff. 4-19-22.)
 
    (55 ILCS 5/5-1006.7)
    Sec. 5-1006.7. School facility and resources occupation 
taxes.
    (a) In any county, a tax shall be imposed upon all persons 
engaged in the business of selling tangible personal property, 
other than personal property titled or registered with an 
agency of this State's government, at retail in the county on 
the gross receipts from the sales made in the course of 
business to provide revenue to be used exclusively for (i) 
school facility purposes (except as otherwise provided in this 
Section), (ii) school resource officers and mental health 
professionals, or (iii) school facility purposes, school 
resource officers, and mental health professionals if a 
proposition for the tax has been submitted to the electors of 
that county and approved by a majority of those voting on the 
question as provided in subsection (c). The tax under this 
Section shall be imposed only in one-quarter percent 
increments and may not exceed 1%.
    This additional tax may not be imposed on tangible 
personal property taxed at the 1% rate under the Retailers' 
Occupation Tax Act (or at the 0% rate imposed under Public Act 
102-700). Beginning December 1, 2019 and through December 31, 
2020, this tax is not imposed on sales of aviation fuel unless 
the tax revenue is expended for airport-related purposes. If 
the county does not have an airport-related purpose to which 
it dedicates aviation fuel tax revenue, then aviation fuel is 
excluded from the tax. The county must comply with the 
certification requirements for airport-related purposes under 
Section 2-22 of the Retailers' Occupation Tax Act. For 
purposes of this Section, "airport-related purposes" has the 
meaning ascribed in Section 6z-20.2 of the State Finance Act. 
Beginning January 1, 2021, this tax is not imposed on sales of 
aviation fuel for so long as the revenue use requirements of 49 
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county. 
The Department of Revenue has full power to administer and 
enforce this subsection, to collect all taxes and penalties 
due under this subsection, to dispose of taxes and penalties 
so collected in the manner provided in this subsection, and to 
determine all rights to credit memoranda arising on account of 
the erroneous payment of a tax or penalty under this 
subsection. The Department shall deposit all taxes and 
penalties collected under this subsection into a special fund 
created for that purpose.
    In the administration of and compliance with this 
subsection, the Department and persons who are subject to this 
subsection (i) have the same rights, remedies, privileges, 
immunities, powers, and duties, (ii) are subject to the same 
conditions, restrictions, limitations, penalties, and 
definitions of terms, and (iii) shall employ the same modes of 
procedure as are set forth in Sections 1 through 1o, 2 through 
2-70 (in respect to all provisions contained in those Sections 
other than the State rate of tax), 2a through 2h, 3 (except as 
to the disposition of taxes and penalties collected, and 
except that the retailer's discount is not allowed for taxes 
paid on aviation fuel that are subject to the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 
5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 
6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' 
Occupation Tax Act and all provisions of the Uniform Penalty 
and Interest Act as if those provisions were set forth in this 
subsection.
    The certificate of registration that is issued by the 
Department to a retailer under the Retailers' Occupation Tax 
Act permits the retailer to engage in a business that is 
taxable without registering separately with the Department 
under an ordinance or resolution under this subsection.
    Persons subject to any tax imposed under the authority 
granted in this subsection may reimburse themselves for their 
seller's tax liability by separately stating that tax as an 
additional charge, which may be stated in combination, in a 
single amount, with State tax that sellers are required to 
collect under the Use Tax Act, pursuant to any bracketed 
schedules set forth by the Department.
    (b) If a tax has been imposed under subsection (a), then a 
service occupation tax must also be imposed at the same rate 
upon all persons engaged, in the county, in the business of 
making sales of service, who, as an incident to making those 
sales of service, transfer tangible personal property within 
the county as an incident to a sale of service.
    This tax may not be imposed on tangible personal property 
taxed at the 1% rate under the Service Occupation Tax Act (or 
at the 0% rate imposed under Public Act 102-700). Beginning 
December 1, 2019 and through December 31, 2020, this tax is not 
imposed on sales of aviation fuel unless the tax revenue is 
expended for airport-related purposes. If the county does not 
have an airport-related purpose to which it dedicates aviation 
fuel tax revenue, then aviation fuel is excluded from the tax. 
The county must comply with the certification requirements for 
airport-related purposes under Section 2-22 of the Retailers' 
Occupation Tax Act. For purposes of this Section, 
"airport-related purposes" has the meaning ascribed in Section 
6z-20.2 of the State Finance Act. Beginning January 1, 2021, 
this tax is not imposed on sales of aviation fuel for so long 
as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133 are binding on the county.
    The tax imposed under this subsection and all civil 
penalties that may be assessed as an incident thereof shall be 
collected and enforced by the Department and deposited into a 
special fund created for that purpose. The Department has full 
power to administer and enforce this subsection, to collect 
all taxes and penalties due under this subsection, to dispose 
of taxes and penalties so collected in the manner provided in 
this subsection, and to determine all rights to credit 
memoranda arising on account of the erroneous payment of a tax 
or penalty under this subsection.
    In the administration of and compliance with this 
subsection, the Department and persons who are subject to this 
subsection shall (i) have the same rights, remedies, 
privileges, immunities, powers and duties, (ii) be subject to 
the same conditions, restrictions, limitations, penalties and 
definition of terms, and (iii) employ the same modes of 
procedure as are set forth in Sections 2 (except that that 
reference to State in the definition of supplier maintaining a 
place of business in this State means the county), 2a through 
2d, 3 through 3-50 (in respect to all provisions contained in 
those Sections other than the State rate of tax), 4 (except 
that the reference to the State shall be to the county), 5, 7, 
8 (except that the jurisdiction to which the tax is a debt to 
the extent indicated in that Section 8 is the county), 9 
(except as to the disposition of taxes and penalties 
collected, and except that the retailer's discount is not 
allowed for taxes paid on aviation fuel that are subject to the 
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
47133), 10, 11, 12 (except the reference therein to Section 2b 
of the Retailers' Occupation Tax Act), 13 (except that any 
reference to the State means the county), 15, 16, 17, 18, 19, 
and 20 of the Service Occupation Tax Act and all provisions of 
the Uniform Penalty and Interest Act, as fully as if those 
provisions were set forth herein.
    Persons subject to any tax imposed under the authority 
granted in this subsection may reimburse themselves for their 
serviceman's tax liability by separately stating the tax as an 
additional charge, which may be stated in combination, in a 
single amount, with State tax that servicemen are authorized 
to collect under the Service Use Tax Act, pursuant to any 
bracketed schedules set forth by the Department.
    (b-5) If, on January 1, 2025, a unit of local government 
has in effect a tax under this Section, or if, after January 1, 
2025, a unit of local government imposes a tax under this 
Section, then that tax applies to leases of tangible personal 
property in effect, entered into, or renewed on or after that 
date in the same manner as the tax under this Section and in 
accordance with the changes made by this amendatory Act of the 
103rd General Assembly. 
    (c) The tax under this Section may not be imposed until the 
question of imposing the tax has been submitted to the 
electors of the county at a regular election and approved by a 
majority of the electors voting on the question. For all 
regular elections held prior to August 23, 2011 (the effective 
date of Public Act 97-542), upon a resolution by the county 
board or a resolution by school district boards that represent 
at least 51% of the student enrollment within the county, the 
county board must certify the question to the proper election 
authority in accordance with the Election Code.
    For all regular elections held prior to August 23, 2011 
(the effective date of Public Act 97-542), the election 
authority must submit the question in substantially the 
following form:
        Shall (name of county) be authorized to impose a 
    retailers' occupation tax and a service occupation tax 
    (commonly referred to as a "sales tax") at a rate of 
    (insert rate) to be used exclusively for school facility 
    purposes?
    The election authority must record the votes as "Yes" or 
"No".
    If a majority of the electors voting on the question vote 
in the affirmative, then the county may, thereafter, impose 
the tax.
    For all regular elections held on or after August 23, 2011 
(the effective date of Public Act 97-542), the regional 
superintendent of schools for the county must, upon receipt of 
a resolution or resolutions of school district boards that 
represent more than 50% of the student enrollment within the 
county, certify the question to the proper election authority 
for submission to the electors of the county at the next 
regular election at which the question lawfully may be 
submitted to the electors, all in accordance with the Election 
Code.
    For all regular elections held on or after August 23, 2011 
(the effective date of Public Act 97-542) and before August 
23, 2019 (the effective date of Public Act 101-455), the 
election authority must submit the question in substantially 
the following form:
        Shall a retailers' occupation tax and a service 
    occupation tax (commonly referred to as a "sales tax") be 
    imposed in (name of county) at a rate of (insert rate) to 
    be used exclusively for school facility purposes?
    The election authority must record the votes as "Yes" or 
"No".
    If a majority of the electors voting on the question vote 
in the affirmative, then the tax shall be imposed at the rate 
set forth in the question. 
    For all regular elections held on or after August 23, 2019 
(the effective date of Public Act 101-455), the election 
authority must submit the question as follows:
        (1) If the referendum is to expand the use of revenues 
    from a currently imposed tax exclusively for school 
    facility purposes to include school resource officers and 
    mental health professionals, the question shall be in 
    substantially the following form:
            In addition to school facility purposes, shall 
        (name of county) school districts be authorized to use 
        revenues from the tax commonly referred to as the 
        school facility sales tax that is currently imposed in 
        (name of county) at a rate of (insert rate) for school 
        resource officers and mental health professionals?
        (2) If the referendum is to increase the rate of a tax 
    currently imposed exclusively for school facility purposes 
    at less than 1% and dedicate the additional revenues for 
    school resource officers and mental health professionals, 
    the question shall be in substantially the following form:
            Shall the tax commonly referred to as the school 
        facility sales tax that is currently imposed in (name 
        of county) at the rate of (insert rate) be increased to 
        a rate of (insert rate) with the additional revenues 
        used exclusively for school resource officers and 
        mental health professionals?
        (3) If the referendum is to impose a tax in a county 
    that has not previously imposed a tax under this Section 
    exclusively for school facility purposes, the question 
    shall be in substantially the following form:
            Shall a retailers' occupation tax and a service 
        occupation tax (commonly referred to as a sales tax) 
        be imposed in (name of county) at a rate of (insert 
        rate) to be used exclusively for school facility 
        purposes?
        (4) If the referendum is to impose a tax in a county 
    that has not previously imposed a tax under this Section 
    exclusively for school resource officers and mental health 
    professionals, the question shall be in substantially the 
    following form:
            Shall a retailers' occupation tax and a service 
        occupation tax (commonly referred to as a sales tax) 
        be imposed in (name of county) at a rate of (insert 
        rate) to be used exclusively for school resource 
        officers and mental health professionals?
        (5) If the referendum is to impose a tax in a county 
    that has not previously imposed a tax under this Section 
    exclusively for school facility purposes, school resource 
    officers, and mental health professionals, the question 
    shall be in substantially the following form:
            Shall a retailers' occupation tax and a service 
        occupation tax (commonly referred to as a sales tax) 
        be imposed in (name of county) at a rate of (insert 
        rate) to be used exclusively for school facility 
        purposes, school resource officers, and mental health 
        professionals?
    The election authority must record the votes as "Yes" or 
"No".
    If a majority of the electors voting on the question vote 
in the affirmative, then the tax shall be imposed at the rate 
set forth in the question.
    For the purposes of this subsection (c), "enrollment" 
means the head count of the students residing in the county on 
the last school day of September of each year, which must be 
reported on the Illinois State Board of Education Public 
School Fall Enrollment/Housing Report. 
    (d) Except as otherwise provided, the Department shall 
immediately pay over to the State Treasurer, ex officio, as 
trustee, all taxes and penalties collected under this Section 
to be deposited into the School Facility Occupation Tax Fund, 
which shall be an unappropriated trust fund held outside the 
State treasury. Taxes and penalties collected on aviation fuel 
sold on or after December 1, 2019 and through December 31, 
2020, shall be immediately paid over by the Department to the 
State Treasurer, ex officio, as trustee, for deposit into the 
Local Government Aviation Trust Fund. The Department shall 
only pay moneys into the Local Government Aviation Trust Fund 
under this Section for so long as the revenue use requirements 
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
county.
    On or before the 25th day of each calendar month, the 
Department shall prepare and certify to the Comptroller the 
disbursement of stated sums of money to the regional 
superintendents of schools in counties from which retailers or 
servicemen have paid taxes or penalties to the Department 
during the second preceding calendar month. The amount to be 
paid to each regional superintendent of schools and disbursed 
to him or her in accordance with Section 3-14.31 of the School 
Code, is equal to the amount (not including credit memoranda 
and not including taxes and penalties collected on aviation 
fuel sold on or after December 1, 2019 and through December 31, 
2020) collected from the county under this Section during the 
second preceding calendar month by the Department, (i) less 2% 
of that amount (except the amount collected on aviation fuel 
sold on or after December 1, 2019 and through December 31, 
2020), of which 50% shall be deposited into the Tax Compliance 
and Administration Fund and shall be used by the Department, 
subject to appropriation, to cover the costs of the Department 
in administering and enforcing the provisions of this Section, 
on behalf of the county, and 50% shall be distributed to the 
regional superintendent of schools to cover the costs in 
administering and enforcing the provisions of this Section; 
(ii) plus an amount that the Department determines is 
necessary to offset any amounts that were erroneously paid to 
a different taxing body; (iii) less an amount equal to the 
amount of refunds made during the second preceding calendar 
month by the Department on behalf of the county; and (iv) less 
any amount that the Department determines is necessary to 
offset any amounts that were payable to a different taxing 
body but were erroneously paid to the county. When certifying 
the amount of a monthly disbursement to a regional 
superintendent of schools under this Section, the Department 
shall increase or decrease the amounts by an amount necessary 
to offset any miscalculation of previous disbursements within 
the previous 6 months from the time a miscalculation is 
discovered.
    Within 10 days after receipt by the Comptroller from the 
Department of the disbursement certification to the regional 
superintendents of the schools provided for in this Section, 
the Comptroller shall cause the orders to be drawn for the 
respective amounts in accordance with directions contained in 
the certification.
    If the Department determines that a refund should be made 
under this Section to a claimant instead of issuing a credit 
memorandum, then the Department shall notify the Comptroller, 
who shall cause the order to be drawn for the amount specified 
and to the person named in the notification from the 
Department. The refund shall be paid by the Treasurer out of 
the School Facility Occupation Tax Fund or the Local 
Government Aviation Trust Fund, as appropriate. 
    (e) For the purposes of determining the local governmental 
unit whose tax is applicable, a retail sale by a producer of 
coal or another mineral mined in Illinois is a sale at retail 
at the place where the coal or other mineral mined in Illinois 
is extracted from the earth. This subsection does not apply to 
coal or another mineral when it is delivered or shipped by the 
seller to the purchaser at a point outside Illinois so that the 
sale is exempt under the United States Constitution as a sale 
in interstate or foreign commerce.
    (f) Nothing in this Section may be construed to authorize 
a tax to be imposed upon the privilege of engaging in any 
business that under the Constitution of the United States may 
not be made the subject of taxation by this State.
    (g) If a county board imposes a tax under this Section 
pursuant to a referendum held before August 23, 2011 (the 
effective date of Public Act 97-542) at a rate below the rate 
set forth in the question approved by a majority of electors of 
that county voting on the question as provided in subsection 
(c), then the county board may, by ordinance, increase the 
rate of the tax up to the rate set forth in the question 
approved by a majority of electors of that county voting on the 
question as provided in subsection (c). If a county board 
imposes a tax under this Section pursuant to a referendum held 
before August 23, 2011 (the effective date of Public Act 
97-542), then the board may, by ordinance, discontinue or 
reduce the rate of the tax. If a tax is imposed under this 
Section pursuant to a referendum held on or after August 23, 
2011 (the effective date of Public Act 97-542) and before 
August 23, 2019 (the effective date of Public Act 101-455), 
then the county board may reduce or discontinue the tax, but 
only in accordance with subsection (h-5) of this Section. If a 
tax is imposed under this Section pursuant to a referendum 
held on or after August 23, 2019 (the effective date of Public 
Act 101-455), then the county board may reduce or discontinue 
the tax, but only in accordance with subsection (h-10). If, 
however, a school board issues bonds that are secured by the 
proceeds of the tax under this Section, then the county board 
may not reduce the tax rate or discontinue the tax if that rate 
reduction or discontinuance would adversely affect the school 
board's ability to pay the principal and interest on those 
bonds as they become due or necessitate the extension of 
additional property taxes to pay the principal and interest on 
those bonds. If the county board reduces the tax rate or 
discontinues the tax, then a referendum must be held in 
accordance with subsection (c) of this Section in order to 
increase the rate of the tax or to reimpose the discontinued 
tax. 
    Until January 1, 2014, the results of any election that 
imposes, reduces, or discontinues a tax under this Section 
must be certified by the election authority, and any ordinance 
that increases or lowers the rate or discontinues the tax must 
be certified by the county clerk and, in each case, filed with 
the Illinois Department of Revenue either (i) on or before the 
first day of April, whereupon the Department shall proceed to 
administer and enforce the tax or change in the rate as of the 
first day of July next following the filing; or (ii) on or 
before the first day of October, whereupon the Department 
shall proceed to administer and enforce the tax or change in 
the rate as of the first day of January next following the 
filing.
    Beginning January 1, 2014, the results of any election 
that imposes, reduces, or discontinues a tax under this 
Section must be certified by the election authority, and any 
ordinance that increases or lowers the rate or discontinues 
the tax must be certified by the county clerk and, in each 
case, filed with the Illinois Department of Revenue either (i) 
on or before the first day of May, whereupon the Department 
shall proceed to administer and enforce the tax or change in 
the rate as of the first day of July next following the filing; 
or (ii) on or before the first day of October, whereupon the 
Department shall proceed to administer and enforce the tax or 
change in the rate as of the first day of January next 
following the filing. 
    (h) For purposes of this Section, "school facility 
purposes" means (i) the acquisition, development, 
construction, reconstruction, rehabilitation, improvement, 
financing, architectural planning, and installation of capital 
facilities consisting of buildings, structures, and durable 
equipment and for the acquisition and improvement of real 
property and interest in real property required, or expected 
to be required, in connection with the capital facilities and 
(ii) the payment of bonds or other obligations heretofore or 
hereafter issued, including bonds or other obligations 
heretofore or hereafter issued to refund or to continue to 
refund bonds or other obligations issued, for school facility 
purposes, provided that the taxes levied to pay those bonds 
are abated by the amount of the taxes imposed under this 
Section that are used to pay those bonds. "School facility 
purposes" also includes fire prevention, safety, energy 
conservation, accessibility, school security, and specified 
repair purposes set forth under Section 17-2.11 of the School 
Code.
    (h-5) A county board in a county where a tax has been 
imposed under this Section pursuant to a referendum held on or 
after August 23, 2011 (the effective date of Public Act 
97-542) and before August 23, 2019 (the effective date of 
Public Act 101-455) may, by ordinance or resolution, submit to 
the voters of the county the question of reducing or 
discontinuing the tax. In the ordinance or resolution, the 
county board shall certify the question to the proper election 
authority in accordance with the Election Code. The election 
authority must submit the question in substantially the 
following form:
        Shall the school facility retailers' occupation tax 
    and service occupation tax (commonly referred to as the 
    "school facility sales tax") currently imposed in (name of 
    county) at a rate of (insert rate) be (reduced to (insert 
    rate))(discontinued)?
If a majority of the electors voting on the question vote in 
the affirmative, then, subject to the provisions of subsection 
(g) of this Section, the tax shall be reduced or discontinued 
as set forth in the question. 
    (h-10) A county board in a county where a tax has been 
imposed under this Section pursuant to a referendum held on or 
after August 23, 2019 (the effective date of Public Act 
101-455) may, by ordinance or resolution, submit to the voters 
of the county the question of reducing or discontinuing the 
tax. In the ordinance or resolution, the county board shall 
certify the question to the proper election authority in 
accordance with the Election Code. The election authority must 
submit the question in substantially the following form:
        Shall the school facility and resources retailers' 
    occupation tax and service occupation tax (commonly 
    referred to as the school facility and resources sales 
    tax) currently imposed in (name of county) at a rate of 
    (insert rate) be (reduced to (insert rate)) 
    (discontinued)?
    The election authority must record the votes as "Yes" or 
"No". 
    If a majority of the electors voting on the question vote 
in the affirmative, then, subject to the provisions of 
subsection (g) of this Section, the tax shall be reduced or 
discontinued as set forth in the question. 
    (i) This Section does not apply to Cook County.
    (j) This Section may be cited as the County School 
Facility and Resources Occupation Tax Law. 
(Source: P.A. 102-700, eff. 4-19-22; 102-1062, eff. 7-1-22; 
103-154, eff. 6-30-23.)
 
    (55 ILCS 5/5-1007)  (from Ch. 34, par. 5-1007)
    Sec. 5-1007. Home Rule County Service Occupation Tax Law. 
The corporate authorities of a home rule county may impose a 
tax upon all persons engaged, in such county, in the business 
of making sales of service at the same rate of tax imposed 
pursuant to Section 5-1006 of the selling price of all 
tangible personal property transferred by such servicemen 
either in the form of tangible personal property or in the form 
of real estate as an incident to a sale of service. If imposed, 
such tax shall only be imposed in 1/4% increments. On and after 
September 1, 1991, this additional tax may not be imposed on 
tangible personal property taxed at the 1% rate under the 
Service Occupation Tax Act (or at the 0% rate imposed under 
this amendatory Act of the 102nd General Assembly). Beginning 
December 1, 2019, this tax is not imposed on sales of aviation 
fuel unless the tax revenue is expended for airport-related 
purposes. If the county does not have an airport-related 
purpose to which it dedicates aviation fuel tax revenue, then 
aviation fuel is excluded from the tax. The county must comply 
with the certification requirements for airport-related 
purposes under Section 2-22 of the Retailers' Occupation Tax 
Act. For purposes of this Section, "airport-related purposes" 
has the meaning ascribed in Section 6z-20.2 of the State 
Finance Act. This exclusion for aviation fuel only applies for 
so long as the revenue use requirements of 49 U.S.C. 47107(b) 
and 49 U.S.C. 47133 are binding on the county. The changes made 
to this Section by this amendatory Act of the 101st General 
Assembly are a denial and limitation of home rule powers and 
functions under subsection (g) of Section 6 of Article VII of 
the Illinois Constitution. The tax imposed by a home rule 
county pursuant to this Section and all civil penalties that 
may be assessed as an incident thereof shall be collected and 
enforced by the State Department of Revenue. The certificate 
of registration which is issued by the Department to a 
retailer under the Retailers' Occupation Tax Act or under the 
Service Occupation Tax Act shall permit such registrant to 
engage in a business which is taxable under any ordinance or 
resolution enacted pursuant to this Section without 
registering separately with the Department under such 
ordinance or resolution or under this Section. The Department 
shall have full power to administer and enforce this Section; 
to collect all taxes and penalties due hereunder; to dispose 
of taxes and penalties so collected in the manner hereinafter 
provided; and to determine all rights to credit memoranda 
arising on account of the erroneous payment of tax or penalty 
hereunder. In the administration of, and compliance with, this 
Section the Department and persons who are subject to this 
Section shall have the same rights, remedies, privileges, 
immunities, powers and duties, and be subject to the same 
conditions, restrictions, limitations, penalties and 
definitions of terms, and employ the same modes of procedure, 
as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in 
respect to all provisions therein other than the State rate of 
tax), 4 (except that the reference to the State shall be to the 
taxing county), 5, 7, 8 (except that the jurisdiction to which 
the tax shall be a debt to the extent indicated in that Section 
8 shall be the taxing county), 9 (except as to the disposition 
of taxes and penalties collected, and except that the returned 
merchandise credit for this county tax may not be taken 
against any State tax, and except that the retailer's discount 
is not allowed for taxes paid on aviation fuel that are subject 
to the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133), 10, 11, 12 (except the reference therein to 
Section 2b of the Retailers' Occupation Tax Act), 13 (except 
that any reference to the State shall mean the taxing county), 
the first paragraph of Section 15, 16, 17, 18, 19 and 20 of the 
Service Occupation Tax Act and Section 3-7 of the Uniform 
Penalty and Interest Act, as fully as if those provisions were 
set forth herein.
    No tax may be imposed by a home rule county pursuant to 
this Section unless such county also imposes a tax at the same 
rate pursuant to Section 5-1006.
    If, on January 1, 2025, a unit of local government has in 
effect a tax under this Section, or if, after January 1, 2025, 
a unit of local government imposes a tax under this Section, 
then that tax applies to leases of tangible personal property 
in effect, entered into, or renewed on or after that date in 
the same manner as the tax under this Section and in accordance 
with the changes made by this amendatory Act of the 103rd 
General Assembly. 
    Persons subject to any tax imposed pursuant to the 
authority granted in this Section may reimburse themselves for 
their serviceman's tax liability hereunder by separately 
stating such tax as an additional charge, which charge may be 
stated in combination, in a single amount, with State tax 
which servicemen are authorized to collect under the Service 
Use Tax Act, pursuant to such bracket schedules as the 
Department may prescribe.
    Whenever the Department determines that a refund should be 
made under this Section to a claimant instead of issuing 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the order to be drawn for the 
amount specified, and to the person named, in such 
notification from the Department. Such refund shall be paid by 
the State Treasurer out of the home rule county retailers' 
occupation tax fund or the Local Government Aviation Trust 
Fund, as appropriate.
    Except as otherwise provided in this paragraph, the 
Department shall forthwith pay over to the State Treasurer, ex 
officio, as trustee, all taxes and penalties collected 
hereunder for deposit into the Home Rule County Retailers' 
Occupation Tax Fund. Taxes and penalties collected on aviation 
fuel sold on or after December 1, 2019, shall be immediately 
paid over by the Department to the State Treasurer, ex 
officio, as trustee, for deposit into the Local Government 
Aviation Trust Fund. The Department shall only pay moneys into 
the Local Government Aviation Trust Fund under this Section 
for so long as the revenue use requirements of 49 U.S.C. 
47107(b) and 49 U.S.C. 47133 are binding on the county. 
    As soon as possible after the first day of each month, 
beginning January 1, 2011, upon certification of the 
Department of Revenue, the Comptroller shall order 
transferred, and the Treasurer shall transfer, to the STAR 
Bonds Revenue Fund the local sales tax increment, as defined 
in the Innovation Development and Economy Act, collected under 
this Section during the second preceding calendar month for 
sales within a STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund, 
on or before the 25th day of each calendar month, the 
Department shall prepare and certify to the Comptroller the 
disbursement of stated sums of money to named counties, the 
counties to be those from which suppliers and servicemen have 
paid taxes or penalties hereunder to the Department during the 
second preceding calendar month. The amount to be paid to each 
county shall be the amount (not including credit memoranda and 
not including taxes and penalties collected on aviation fuel 
sold on or after December 1, 2019) collected hereunder during 
the second preceding calendar month by the Department, and not 
including an amount equal to the amount of refunds made during 
the second preceding calendar month by the Department on 
behalf of such county, and not including any amounts that are 
transferred to the STAR Bonds Revenue Fund, less 1.5% of the 
remainder, which the Department shall transfer into the Tax 
Compliance and Administration Fund. The Department, at the 
time of each monthly disbursement to the counties, shall 
prepare and certify to the State Comptroller the amount to be 
transferred into the Tax Compliance and Administration Fund 
under this Section. Within 10 days after receipt, by the 
Comptroller, of the disbursement certification to the counties 
and the Tax Compliance and Administration Fund provided for in 
this Section to be given to the Comptroller by the Department, 
the Comptroller shall cause the orders to be drawn for the 
respective amounts in accordance with the directions contained 
in such certification.
    In addition to the disbursement required by the preceding 
paragraph, an allocation shall be made in each year to each 
county which received more than $500,000 in disbursements 
under the preceding paragraph in the preceding calendar year. 
The allocation shall be in an amount equal to the average 
monthly distribution made to each such county under the 
preceding paragraph during the preceding calendar year 
(excluding the 2 months of highest receipts). The distribution 
made in March of each year subsequent to the year in which an 
allocation was made pursuant to this paragraph and the 
preceding paragraph shall be reduced by the amount allocated 
and disbursed under this paragraph in the preceding calendar 
year. The Department shall prepare and certify to the 
Comptroller for disbursement the allocations made in 
accordance with this paragraph.
    Nothing in this Section shall be construed to authorize a 
county to impose a tax upon the privilege of engaging in any 
business which under the Constitution of the United States may 
not be made the subject of taxation by this State.
    An ordinance or resolution imposing or discontinuing a tax 
hereunder or effecting a change in the rate thereof shall be 
adopted and a certified copy thereof filed with the Department 
on or before the first day of June, whereupon the Department 
shall proceed to administer and enforce this Section as of the 
first day of September next following such adoption and 
filing. Beginning January 1, 1992, an ordinance or resolution 
imposing or discontinuing the tax hereunder or effecting a 
change in the rate thereof shall be adopted and a certified 
copy thereof filed with the Department on or before the first 
day of July, whereupon the Department shall proceed to 
administer and enforce this Section as of the first day of 
October next following such adoption and filing. Beginning 
January 1, 1993, an ordinance or resolution imposing or 
discontinuing the tax hereunder or effecting a change in the 
rate thereof shall be adopted and a certified copy thereof 
filed with the Department on or before the first day of 
October, whereupon the Department shall proceed to administer 
and enforce this Section as of the first day of January next 
following such adoption and filing. Beginning April 1, 1998, 
an ordinance or resolution imposing or discontinuing the tax 
hereunder or effecting a change in the rate thereof shall 
either (i) be adopted and a certified copy thereof filed with 
the Department on or before the first day of April, whereupon 
the Department shall proceed to administer and enforce this 
Section as of the first day of July next following the adoption 
and filing; or (ii) be adopted and a certified copy thereof 
filed with the Department on or before the first day of 
October, whereupon the Department shall proceed to administer 
and enforce this Section as of the first day of January next 
following the adoption and filing.
    This Section shall be known and may be cited as the Home 
Rule County Service Occupation Tax Law.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
    (55 ILCS 5/5-1008.5)
    Sec. 5-1008.5. Use and occupation taxes. 
    (a) The Rock Island County Board may adopt a resolution 
that authorizes a referendum on the question of whether the 
county shall be authorized to impose a retailers' occupation 
tax, a service occupation tax, and a use tax at a rate of 1/4 
of 1% on behalf of the economic development activities of Rock 
Island County and communities located within the county. The 
county board shall certify the question to the proper election 
authorities who shall submit the question to the voters of the 
county at the next regularly scheduled election in accordance 
with the general election law. The question shall be in 
substantially the following form: 
        Shall Rock Island County be authorized to impose a 
    retailers' occupation tax, a service occupation tax, and a 
    use tax at the rate of 1/4 of 1% for the sole purpose of 
    economic development activities, including creation and 
    retention of job opportunities, support of affordable 
    housing opportunities, and enhancement of quality of life 
    improvements?
    Votes shall be recorded as "yes" or "no". If a majority of 
all votes cast on the proposition are in favor of the 
proposition, the county is authorized to impose the tax.
    (b) The county shall impose the retailers' occupation tax 
upon all persons engaged in the business of selling tangible 
personal property at retail in the county, at the rate 
approved by referendum, on the gross receipts from the sales 
made in the course of those businesses within the county. This 
additional tax may not be imposed on tangible personal 
property taxed at the 1% rate under the Retailers' Occupation 
Tax Act. Beginning December 1, 2019, this tax is not imposed on 
sales of aviation fuel unless the tax revenue is expended for 
airport-related purposes. If the county does not have an 
airport-related purpose to which it dedicates aviation fuel 
tax revenue, then aviation fuel is excluded from the tax. The 
county must comply with the certification requirements for 
airport-related purposes under Section 2-22 of the Retailers' 
Occupation Tax Act. For purposes of this Section, 
"airport-related purposes" has the meaning ascribed in Section 
6z-20.2 of the State Finance Act. This exclusion for aviation 
fuel only applies for so long as the revenue use requirements 
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
county. The tax imposed under this Section and all civil 
penalties that may be assessed as an incident of the tax shall 
be collected and enforced by the Department of Revenue. The 
Department has full power to administer and enforce this 
Section; to collect all taxes and penalties so collected in 
the manner provided in this Section; and to determine all 
rights to credit memoranda arising on account of the erroneous 
payment of tax or penalty under this Section. In the 
administration of, and compliance with, this Section, the 
Department and persons who are subject to this Section shall 
(i) have the same rights, remedies, privileges, immunities, 
powers and duties, (ii) be subject to the same conditions, 
restrictions, limitations, penalties, exclusions, exemptions, 
and definitions of terms, and (iii) employ the same modes of 
procedure as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d, 
1e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to 
all provisions other than the State rate of tax), 2-15 through 
2-70, 2a, 2b, 2c, 3 (except as to the disposition of taxes and 
penalties collected and provisions related to quarter monthly 
payments, and except that the retailer's discount is not 
allowed for taxes paid on aviation fuel that are subject to the 
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 
6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' 
Occupation Tax Act and Section 3-7 of the Uniform Penalty and 
Interest Act, as fully as if those provisions were set forth in 
this subsection.
    Persons subject to any tax imposed under this subsection 
may reimburse themselves for their seller's tax liability by 
separately stating the tax as an additional charge, which 
charge may be stated in combination, in a single amount, with 
State taxes that sellers are required to collect, in 
accordance with bracket schedules prescribed by the 
Department.
    Whenever the Department determines that a refund should be 
made under this subsection to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the warrant to be drawn for the 
amount specified, and to the person named, in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the tax fund referenced under paragraph (g) 
of this Section or the Local Government Aviation Trust Fund, 
as appropriate.
    If a tax is imposed under this subsection (b), a tax shall 
also be imposed at the same rate under subsections (c) and (d) 
of this Section.
    For the purpose of determining whether a tax authorized 
under this Section is applicable, a retail sale, by a producer 
of coal or another mineral mined in Illinois, is a sale at 
retail at the place where the coal or other mineral mined in 
Illinois is extracted from the earth. This paragraph does not 
apply to coal or another mineral when it is delivered or 
shipped by the seller to the purchaser at a point outside 
Illinois so that the sale is exempt under the federal 
Constitution as a sale in interstate or foreign commerce.
    Nothing in this Section shall be construed to authorize 
the county to impose a tax upon the privilege of engaging in 
any business that under the Constitution of the United States 
may not be made the subject of taxation by this State.
    (c) If a tax has been imposed under subsection (b), a 
service occupation tax shall also be imposed at the same rate 
upon all persons engaged, in the county, in the business of 
making sales of service, who, as an incident to making those 
sales of service, transfer tangible personal property within 
the county as an incident to a sale of service. This additional 
tax may not be imposed on tangible personal property taxed at 
the 1% rate under the Service Occupation Tax Act. Beginning 
December 1, 2019, this tax is not imposed on sales of aviation 
fuel unless the tax revenue is expended for airport-related 
purposes. If the county does not have an airport-related 
purpose to which it dedicates aviation fuel tax revenue, then 
aviation fuel is excluded from the tax. The county must comply 
with the certification requirements for airport-related 
purposes under Section 2-22 of the Retailers' Occupation Tax 
Act. For purposes of this Section, "airport-related purposes" 
has the meaning ascribed in Section 6z-20.2 of the State 
Finance Act. This exclusion for aviation fuel only applies for 
so long as the revenue use requirements of 49 U.S.C. 47107(b) 
and 49 U.S.C. 47133 are binding on the county. The tax imposed 
under this subsection and all civil penalties that may be 
assessed as an incident of the tax shall be collected and 
enforced by the Department of Revenue. The Department has full 
power to administer and enforce this paragraph; to collect all 
taxes and penalties due under this Section; to dispose of 
taxes and penalties so collected in the manner provided in 
this Section; and to determine all rights to credit memoranda 
arising on account of the erroneous payment of tax or penalty 
under this Section. In the administration of, and compliance 
with this paragraph, the Department and persons who are 
subject to this paragraph shall (i) have the same rights, 
remedies, privileges, immunities, powers, and duties, (ii) be 
subject to the same conditions, restrictions, limitations, 
penalties, exclusions, exemptions, and definitions of terms, 
and (iii) employ the same modes of procedure as are prescribed 
in Sections 2 (except that the reference to State in the 
definition of supplier maintaining a place of business in this 
State shall mean the county), 2a, 2b, 3 through 3-55 (in 
respect to all provisions other than the State rate of tax), 4 
(except that the reference to the State shall be to the 
county), 5, 7, 8 (except that the jurisdiction to which the tax 
shall be a debt to the extent indicated in that Section 8 shall 
be the county), 9 (except as to the disposition of taxes and 
penalties collected, and except that the returned merchandise 
credit for this tax may not be taken against any State tax, and 
except that the retailer's discount is not allowed for taxes 
paid on aviation fuel that are subject to the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 11, 
12 (except the reference to Section 2b of the Retailers' 
Occupation Tax Act), 13 (except that any reference to the 
State shall mean the county), 15, 16, 17, 18, 19 and 20 of the 
Service Occupation Tax Act and Section 3-7 of the Uniform 
Penalty and Interest Act, as fully as if those provisions were 
set forth in this subsection.
    Persons subject to any tax imposed under the authority 
granted in this subsection may reimburse themselves for their 
serviceman's tax liability by separately stating the tax as an 
additional charge, which charge may be stated in combination, 
in a single amount, with State tax that servicemen are 
authorized to collect under the Service Use Tax Act, in 
accordance with bracket schedules prescribed by the 
Department.
    Whenever the Department determines that a refund should be 
made under this subsection to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the warrant to be drawn for the 
amount specified, and to the person named, in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the tax fund referenced under paragraph (g) 
of this Section or the Local Government Aviation Trust Fund, 
as appropriate.
    Nothing in this paragraph shall be construed to authorize 
the county to impose a tax upon the privilege of engaging in 
any business that under the Constitution of the United States 
may not be made the subject of taxation by the State.
    (c-5) If, on January 1, 2025, a unit of local government 
has in effect a tax under this Section, or if, after January 1, 
2025, a unit of local government imposes a tax under this 
Section, then that tax applies to leases of tangible personal 
property in effect, entered into, or renewed on or after that 
date in the same manner as the tax under this Section and in 
accordance with the changes made by this amendatory Act of the 
103rd General Assembly. 
    (d) If a tax has been imposed under subsection (b), a use 
tax shall also be imposed at the same rate upon the privilege 
of using, in the county, any item of tangible personal 
property that is purchased outside the county at retail from a 
retailer, and that is titled or registered at a location 
within the county with an agency of this State's government. 
"Selling price" is defined as in the Use Tax Act. The tax shall 
be collected from persons whose Illinois address for titling 
or registration purposes is given as being in the county. The 
tax shall be collected by the Department of Revenue for the 
county. The tax must be paid to the State, or an exemption 
determination must be obtained from the Department of Revenue, 
before the title or certificate of registration for the 
property may be issued. The tax or proof of exemption may be 
transmitted to the Department by way of the State agency with 
which, or the State officer with whom, the tangible personal 
property must be titled or registered if the Department and 
the State agency or State officer determine that this 
procedure will expedite the processing of applications for 
title or registration.
    The Department has full power to administer and enforce 
this paragraph; to collect all taxes, penalties, and interest 
due under this Section; to dispose of taxes, penalties, and 
interest so collected in the manner provided in this Section; 
and to determine all rights to credit memoranda or refunds 
arising on account of the erroneous payment of tax, penalty, 
or interest under this Section. In the administration of, and 
compliance with, this subsection, the Department and persons 
who are subject to this paragraph shall (i) have the same 
rights, remedies, privileges, immunities, powers, and duties, 
(ii) be subject to the same conditions, restrictions, 
limitations, penalties, exclusions, exemptions, and 
definitions of terms, and (iii) employ the same modes of 
procedure as are prescribed in Sections 2 (except the 
definition of "retailer maintaining a place of business in 
this State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, 
4, 6, 7, 8 (except that the jurisdiction to which the tax shall 
be a debt to the extent indicated in that Section 8 shall be 
the county), 9 (except provisions relating to quarter monthly 
payments), 10, 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22 
of the Use Tax Act and Section 3-7 of the Uniform Penalty and 
Interest Act, that are not inconsistent with this paragraph, 
as fully as if those provisions were set forth in this 
subsection.
    Whenever the Department determines that a refund should be 
made under this subsection to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the order to be drawn for the 
amount specified, and to the person named, in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the tax fund referenced under paragraph (g) 
of this Section.
    (e) A certificate of registration issued by the State 
Department of Revenue to a retailer under the Retailers' 
Occupation Tax Act or under the Service Occupation Tax Act 
shall permit the registrant to engage in a business that is 
taxed under the tax imposed under paragraphs (b), (c), or (d) 
of this Section and no additional registration shall be 
required. A certificate issued under the Use Tax Act or the 
Service Use Tax Act shall be applicable with regard to any tax 
imposed under paragraph (c) of this Section.
    (f) The results of any election authorizing a proposition 
to impose a tax under this Section or effecting a change in the 
rate of tax shall be certified by the proper election 
authorities and filed with the Illinois Department on or 
before the first day of October. In addition, an ordinance 
imposing, discontinuing, or effecting a change in the rate of 
tax under this Section shall be adopted and a certified copy of 
the ordinance filed with the Department on or before the first 
day of October. After proper receipt of the certifications, 
the Department shall proceed to administer and enforce this 
Section as of the first day of January next following the 
adoption and filing.
    (g) Except as otherwise provided in paragraph (g-2), the 
Department of Revenue shall, upon collecting any taxes and 
penalties as provided in this Section, pay the taxes and 
penalties over to the State Treasurer as trustee for the 
county. The taxes and penalties shall be held in a trust fund 
outside the State Treasury. On or before the 25th day of each 
calendar month, the Department of Revenue shall prepare and 
certify to the Comptroller of the State of Illinois the amount 
to be paid to the county, which shall be the balance in the 
fund, less any amount determined by the Department to be 
necessary for the payment of refunds. Within 10 days after 
receipt by the Comptroller of the certification of the amount 
to be paid to the county, the Comptroller shall cause an order 
to be drawn for payment for the amount in accordance with the 
directions contained in the certification. Amounts received 
from the tax imposed under this Section shall be used only for 
the economic development activities of the county and 
communities located within the county.
    (g-2) Taxes and penalties collected on aviation fuel sold 
on or after December 1, 2019, shall be immediately paid over by 
the Department to the State Treasurer, ex officio, as trustee, 
for deposit into the Local Government Aviation Trust Fund. The 
Department shall only pay moneys into the Local Government 
Aviation Trust Fund under this Section for so long as the 
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
47133 are binding on the county. 
    (h) When certifying the amount of a monthly disbursement 
to the county under this Section, the Department shall 
increase or decrease the amounts by an amount necessary to 
offset any miscalculation of previous disbursements. The 
offset amount shall be the amount erroneously disbursed within 
the previous 6 months from the time a miscalculation is 
discovered.
    (i) This Section may be cited as the Rock Island County Use 
and Occupation Tax Law.
(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 
101-604, eff. 12-13-19.)
 
    Section 75-35. The Illinois Municipal Code is amended by 
changing Sections 8-11-1, 8-11-1.3, 8-11-1.4, 8-11-1.6, 
8-11-1.7, and 11-74.3-6 as follows:
 
    (65 ILCS 5/8-11-1)  (from Ch. 24, par. 8-11-1)
    Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax 
Act. The corporate authorities of a home rule municipality may 
impose a tax upon all persons engaged in the business of 
selling tangible personal property, other than an item of 
tangible personal property titled or registered with an agency 
of this State's government, at retail in the municipality on 
the gross receipts from these sales made in the course of such 
business. If imposed, the tax shall only be imposed in 1/4% 
increments. On and after September 1, 1991, this additional 
tax may not be imposed on tangible personal property taxed at 
the 1% rate under the Retailers' Occupation Tax Act (or at the 
0% rate imposed under this amendatory Act of the 102nd General 
Assembly). Beginning December 1, 2019, this tax is not imposed 
on sales of aviation fuel unless the tax revenue is expended 
for airport-related purposes. If a municipality does not have 
an airport-related purpose to which it dedicates aviation fuel 
tax revenue, then aviation fuel is excluded from the tax. Each 
municipality must comply with the certification requirements 
for airport-related purposes under Section 2-22 of the 
Retailers' Occupation Tax Act. For purposes of this Section, 
"airport-related purposes" has the meaning ascribed in Section 
6z-20.2 of the State Finance Act. This exclusion for aviation 
fuel only applies for so long as the revenue use requirements 
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
municipality. The changes made to this Section by this 
amendatory Act of the 101st General Assembly are a denial and 
limitation of home rule powers and functions under subsection 
(g) of Section 6 of Article VII of the Illinois Constitution. 
The tax imposed by a home rule municipality under this Section 
and all civil penalties that may be assessed as an incident of 
the tax shall be collected and enforced by the State 
Department of Revenue. The certificate of registration that is 
issued by the Department to a retailer under the Retailers' 
Occupation Tax Act shall permit the retailer to engage in a 
business that is taxable under any ordinance or resolution 
enacted pursuant to this Section without registering 
separately with the Department under such ordinance or 
resolution or under this Section. The Department shall have 
full power to administer and enforce this Section; to collect 
all taxes and penalties due hereunder; to dispose of taxes and 
penalties so collected in the manner hereinafter provided; and 
to determine all rights to credit memoranda arising on account 
of the erroneous payment of tax or penalty hereunder. In the 
administration of, and compliance with, this Section the 
Department and persons who are subject to this Section shall 
have the same rights, remedies, privileges, immunities, powers 
and duties, and be subject to the same conditions, 
restrictions, limitations, penalties and definitions of terms, 
and employ the same modes of procedure, as are prescribed in 
Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 
(in respect to all provisions therein other than the State 
rate of tax), 2c, 3 (except as to the disposition of taxes and 
penalties collected, and except that the retailer's discount 
is not allowed for taxes paid on aviation fuel that are subject 
to the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 
5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the 
Retailers' Occupation Tax Act and Section 3-7 of the Uniform 
Penalty and Interest Act, as fully as if those provisions were 
set forth herein.
    No tax may be imposed by a home rule municipality under 
this Section unless the municipality also imposes a tax at the 
same rate under Section 8-11-5 of this Act.
    If, on January 1, 2025, a unit of local government has in 
effect a tax under this Section, or if, after January 1, 2025, 
a unit of local government imposes a tax under this Section, 
then that tax applies to leases of tangible personal property 
in effect, entered into, or renewed on or after that date in 
the same manner as the tax under this Section and in accordance 
with the changes made by this amendatory Act of the 103rd 
General Assembly. 
    Persons subject to any tax imposed under the authority 
granted in this Section may reimburse themselves for their 
seller's tax liability hereunder by separately stating that 
tax as an additional charge, which charge may be stated in 
combination, in a single amount, with State tax which sellers 
are required to collect under the Use Tax Act, pursuant to such 
bracket schedules as the Department may prescribe.
    Whenever the Department determines that a refund should be 
made under this Section to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the order to be drawn for the 
amount specified and to the person named in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the home rule municipal retailers' occupation 
tax fund or the Local Government Aviation Trust Fund, as 
appropriate.
    Except as otherwise provided in this paragraph, the 
Department shall immediately pay over to the State Treasurer, 
ex officio, as trustee, all taxes and penalties collected 
hereunder for deposit into the Home Rule Municipal Retailers' 
Occupation Tax Fund. Taxes and penalties collected on aviation 
fuel sold on or after December 1, 2019, shall be immediately 
paid over by the Department to the State Treasurer, ex 
officio, as trustee, for deposit into the Local Government 
Aviation Trust Fund. The Department shall only pay moneys into 
the Local Government Aviation Trust Fund under this Section 
for so long as the revenue use requirements of 49 U.S.C. 
47107(b) and 49 U.S.C. 47133 are binding on the State. 
    As soon as possible after the first day of each month, 
beginning January 1, 2011, upon certification of the 
Department of Revenue, the Comptroller shall order 
transferred, and the Treasurer shall transfer, to the STAR 
Bonds Revenue Fund the local sales tax increment, as defined 
in the Innovation Development and Economy Act, collected under 
this Section during the second preceding calendar month for 
sales within a STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund, 
on or before the 25th day of each calendar month, the 
Department shall prepare and certify to the Comptroller the 
disbursement of stated sums of money to named municipalities, 
the municipalities to be those from which retailers have paid 
taxes or penalties hereunder to the Department during the 
second preceding calendar month. The amount to be paid to each 
municipality shall be the amount (not including credit 
memoranda and not including taxes and penalties collected on 
aviation fuel sold on or after December 1, 2019) collected 
hereunder during the second preceding calendar month by the 
Department plus an amount the Department determines is 
necessary to offset any amounts that were erroneously paid to 
a different taxing body, and not including an amount equal to 
the amount of refunds made during the second preceding 
calendar month by the Department on behalf of such 
municipality, and not including any amount that the Department 
determines is necessary to offset any amounts that were 
payable to a different taxing body but were erroneously paid 
to the municipality, and not including any amounts that are 
transferred to the STAR Bonds Revenue Fund, less 1.5% of the 
remainder, which the Department shall transfer into the Tax 
Compliance and Administration Fund. The Department, at the 
time of each monthly disbursement to the municipalities, shall 
prepare and certify to the State Comptroller the amount to be 
transferred into the Tax Compliance and Administration Fund 
under this Section. Within 10 days after receipt by the 
Comptroller of the disbursement certification to the 
municipalities and the Tax Compliance and Administration Fund 
provided for in this Section to be given to the Comptroller by 
the Department, the Comptroller shall cause the orders to be 
drawn for the respective amounts in accordance with the 
directions contained in the certification.
    In addition to the disbursement required by the preceding 
paragraph and in order to mitigate delays caused by 
distribution procedures, an allocation shall, if requested, be 
made within 10 days after January 14, 1991, and in November of 
1991 and each year thereafter, to each municipality that 
received more than $500,000 during the preceding fiscal year, 
(July 1 through June 30) whether collected by the municipality 
or disbursed by the Department as required by this Section. 
Within 10 days after January 14, 1991, participating 
municipalities shall notify the Department in writing of their 
intent to participate. In addition, for the initial 
distribution, participating municipalities shall certify to 
the Department the amounts collected by the municipality for 
each month under its home rule occupation and service 
occupation tax during the period July 1, 1989 through June 30, 
1990. The allocation within 10 days after January 14, 1991, 
shall be in an amount equal to the monthly average of these 
amounts, excluding the 2 months of highest receipts. The 
monthly average for the period of July 1, 1990 through June 30, 
1991 will be determined as follows: the amounts collected by 
the municipality under its home rule occupation and service 
occupation tax during the period of July 1, 1990 through 
September 30, 1990, plus amounts collected by the Department 
and paid to such municipality through June 30, 1991, excluding 
the 2 months of highest receipts. The monthly average for each 
subsequent period of July 1 through June 30 shall be an amount 
equal to the monthly distribution made to each such 
municipality under the preceding paragraph during this period, 
excluding the 2 months of highest receipts. The distribution 
made in November 1991 and each year thereafter under this 
paragraph and the preceding paragraph shall be reduced by the 
amount allocated and disbursed under this paragraph in the 
preceding period of July 1 through June 30. The Department 
shall prepare and certify to the Comptroller for disbursement 
the allocations made in accordance with this paragraph.
    For the purpose of determining the local governmental unit 
whose tax is applicable, a retail sale by a producer of coal or 
other mineral mined in Illinois is a sale at retail at the 
place where the coal or other mineral mined in Illinois is 
extracted from the earth. This paragraph does not apply to 
coal or other mineral when it is delivered or shipped by the 
seller to the purchaser at a point outside Illinois so that the 
sale is exempt under the United States Constitution as a sale 
in interstate or foreign commerce.
    Nothing in this Section shall be construed to authorize a 
municipality to impose a tax upon the privilege of engaging in 
any business which under the Constitution of the United States 
may not be made the subject of taxation by this State.
    An ordinance or resolution imposing or discontinuing a tax 
hereunder or effecting a change in the rate thereof shall be 
adopted and a certified copy thereof filed with the Department 
on or before the first day of June, whereupon the Department 
shall proceed to administer and enforce this Section as of the 
first day of September next following the adoption and filing. 
Beginning January 1, 1992, an ordinance or resolution imposing 
or discontinuing the tax hereunder or effecting a change in 
the rate thereof shall be adopted and a certified copy thereof 
filed with the Department on or before the first day of July, 
whereupon the Department shall proceed to administer and 
enforce this Section as of the first day of October next 
following such adoption and filing. Beginning January 1, 1993, 
an ordinance or resolution imposing or discontinuing the tax 
hereunder or effecting a change in the rate thereof shall be 
adopted and a certified copy thereof filed with the Department 
on or before the first day of October, whereupon the 
Department shall proceed to administer and enforce this 
Section as of the first day of January next following the 
adoption and filing. However, a municipality located in a 
county with a population in excess of 3,000,000 that elected 
to become a home rule unit at the general primary election in 
1994 may adopt an ordinance or resolution imposing the tax 
under this Section and file a certified copy of the ordinance 
or resolution with the Department on or before July 1, 1994. 
The Department shall then proceed to administer and enforce 
this Section as of October 1, 1994. Beginning April 1, 1998, an 
ordinance or resolution imposing or discontinuing the tax 
hereunder or effecting a change in the rate thereof shall 
either (i) be adopted and a certified copy thereof filed with 
the Department on or before the first day of April, whereupon 
the Department shall proceed to administer and enforce this 
Section as of the first day of July next following the adoption 
and filing; or (ii) be adopted and a certified copy thereof 
filed with the Department on or before the first day of 
October, whereupon the Department shall proceed to administer 
and enforce this Section as of the first day of January next 
following the adoption and filing.
    When certifying the amount of a monthly disbursement to a 
municipality under this Section, the Department shall increase 
or decrease the amount by an amount necessary to offset any 
misallocation of previous disbursements. The offset amount 
shall be the amount erroneously disbursed within the previous 
6 months from the time a misallocation is discovered.
    Any unobligated balance remaining in the Municipal 
Retailers' Occupation Tax Fund on December 31, 1989, which 
fund was abolished by Public Act 85-1135, and all receipts of 
municipal tax as a result of audits of liability periods prior 
to January 1, 1990, shall be paid into the Local Government Tax 
Fund for distribution as provided by this Section prior to the 
enactment of Public Act 85-1135. All receipts of municipal tax 
as a result of an assessment not arising from an audit, for 
liability periods prior to January 1, 1990, shall be paid into 
the Local Government Tax Fund for distribution before July 1, 
1990, as provided by this Section prior to the enactment of 
Public Act 85-1135; and on and after July 1, 1990, all such 
receipts shall be distributed as provided in Section 6z-18 of 
the State Finance Act.
    As used in this Section, "municipal" and "municipality" 
means a city, village or incorporated town, including an 
incorporated town that has superseded a civil township.
    This Section shall be known and may be cited as the Home 
Rule Municipal Retailers' Occupation Tax Act.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers' 
Occupation Tax Act. The corporate authorities of a non-home 
rule municipality may impose a tax upon all persons engaged in 
the business of selling tangible personal property, other than 
on an item of tangible personal property which is titled and 
registered by an agency of this State's Government, at retail 
in the municipality for expenditure on public infrastructure 
or for property tax relief or both as defined in Section 
8-11-1.2 if approved by referendum as provided in Section 
8-11-1.1, of the gross receipts from such sales made in the 
course of such business. If the tax is approved by referendum 
on or after July 14, 2010 (the effective date of Public Act 
96-1057), the corporate authorities of a non-home rule 
municipality may, until July 1, 2030, use the proceeds of the 
tax for expenditure on municipal operations, in addition to or 
in lieu of any expenditure on public infrastructure or for 
property tax relief. The tax imposed may not be more than 1% 
and may be imposed only in 1/4% increments. The tax may not be 
imposed on tangible personal property taxed at the 1% rate 
under the Retailers' Occupation Tax Act (or at the 0% rate 
imposed under this amendatory Act of the 102nd General 
Assembly). Beginning December 1, 2019, this tax is not imposed 
on sales of aviation fuel unless the tax revenue is expended 
for airport-related purposes. If a municipality does not have 
an airport-related purpose to which it dedicates aviation fuel 
tax revenue, then aviation fuel is excluded from the tax. Each 
municipality must comply with the certification requirements 
for airport-related purposes under Section 2-22 of the 
Retailers' Occupation Tax Act. For purposes of this Section, 
"airport-related purposes" has the meaning ascribed in Section 
6z-20.2 of the State Finance Act. This exclusion for aviation 
fuel only applies for so long as the revenue use requirements 
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
municipality. The tax imposed by a municipality pursuant to 
this Section and all civil penalties that may be assessed as an 
incident thereof shall be collected and enforced by the State 
Department of Revenue. The certificate of registration which 
is issued by the Department to a retailer under the Retailers' 
Occupation Tax Act shall permit such retailer to engage in a 
business which is taxable under any ordinance or resolution 
enacted pursuant to this Section without registering 
separately with the Department under such ordinance or 
resolution or under this Section. The Department shall have 
full power to administer and enforce this Section; to collect 
all taxes and penalties due hereunder; to dispose of taxes and 
penalties so collected in the manner hereinafter provided, and 
to determine all rights to credit memoranda, arising on 
account of the erroneous payment of tax or penalty hereunder. 
In the administration of, and compliance with, this Section, 
the Department and persons who are subject to this Section 
shall have the same rights, remedies, privileges, immunities, 
powers and duties, and be subject to the same conditions, 
restrictions, limitations, penalties and definitions of terms, 
and employ the same modes of procedure, as are prescribed in 
Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in 
respect to all provisions therein other than the State rate of 
tax), 2c, 3 (except as to the disposition of taxes and 
penalties collected, and except that the retailer's discount 
is not allowed for taxes paid on aviation fuel that are subject 
to the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 
5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the 
Retailers' Occupation Tax Act and Section 3-7 of the Uniform 
Penalty and Interest Act as fully as if those provisions were 
set forth herein.
    No municipality may impose a tax under this Section unless 
the municipality also imposes a tax at the same rate under 
Section 8-11-1.4 of this Code.
    If, on January 1, 2025, a unit of local government has in 
effect a tax under this Section, or if, after January 1, 2025, 
a unit of local government imposes a tax under this Section, 
then that tax applies to leases of tangible personal property 
in effect, entered into, or renewed on or after that date in 
the same manner as the tax under this Section and in accordance 
with the changes made by this amendatory Act of the 103rd 
General Assembly. 
    Persons subject to any tax imposed pursuant to the 
authority granted in this Section may reimburse themselves for 
their seller's tax liability hereunder by separately stating 
such tax as an additional charge, which charge may be stated in 
combination, in a single amount, with State tax which sellers 
are required to collect under the Use Tax Act, pursuant to such 
bracket schedules as the Department may prescribe.
    Whenever the Department determines that a refund should be 
made under this Section to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the order to be drawn for the 
amount specified, and to the person named, in such 
notification from the Department. Such refund shall be paid by 
the State Treasurer out of the non-home rule municipal 
retailers' occupation tax fund or the Local Government 
Aviation Trust Fund, as appropriate.
    Except as otherwise provided, the Department shall 
forthwith pay over to the State Treasurer, ex officio, as 
trustee, all taxes and penalties collected hereunder for 
deposit into the Non-Home Rule Municipal Retailers' Occupation 
Tax Fund. Taxes and penalties collected on aviation fuel sold 
on or after December 1, 2019, shall be immediately paid over by 
the Department to the State Treasurer, ex officio, as trustee, 
for deposit into the Local Government Aviation Trust Fund. The 
Department shall only pay moneys into the Local Government 
Aviation Trust Fund under this Section for so long as the 
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
47133 are binding on the municipality. 
    As soon as possible after the first day of each month, 
beginning January 1, 2011, upon certification of the 
Department of Revenue, the Comptroller shall order 
transferred, and the Treasurer shall transfer, to the STAR 
Bonds Revenue Fund the local sales tax increment, as defined 
in the Innovation Development and Economy Act, collected under 
this Section during the second preceding calendar month for 
sales within a STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund, 
on or before the 25th day of each calendar month, the 
Department shall prepare and certify to the Comptroller the 
disbursement of stated sums of money to named municipalities, 
the municipalities to be those from which retailers have paid 
taxes or penalties hereunder to the Department during the 
second preceding calendar month. The amount to be paid to each 
municipality shall be the amount (not including credit 
memoranda and not including taxes and penalties collected on 
aviation fuel sold on or after December 1, 2019) collected 
hereunder during the second preceding calendar month by the 
Department plus an amount the Department determines is 
necessary to offset any amounts which were erroneously paid to 
a different taxing body, and not including an amount equal to 
the amount of refunds made during the second preceding 
calendar month by the Department on behalf of such 
municipality, and not including any amount which the 
Department determines is necessary to offset any amounts which 
were payable to a different taxing body but were erroneously 
paid to the municipality, and not including any amounts that 
are transferred to the STAR Bonds Revenue Fund, less 1.5% of 
the remainder, which the Department shall transfer into the 
Tax Compliance and Administration Fund. The Department, at the 
time of each monthly disbursement to the municipalities, shall 
prepare and certify to the State Comptroller the amount to be 
transferred into the Tax Compliance and Administration Fund 
under this Section. Within 10 days after receipt, by the 
Comptroller, of the disbursement certification to the 
municipalities and the Tax Compliance and Administration Fund 
provided for in this Section to be given to the Comptroller by 
the Department, the Comptroller shall cause the orders to be 
drawn for the respective amounts in accordance with the 
directions contained in such certification.
    For the purpose of determining the local governmental unit 
whose tax is applicable, a retail sale, by a producer of coal 
or other mineral mined in Illinois, is a sale at retail at the 
place where the coal or other mineral mined in Illinois is 
extracted from the earth. This paragraph does not apply to 
coal or other mineral when it is delivered or shipped by the 
seller to the purchaser at a point outside Illinois so that the 
sale is exempt under the Federal Constitution as a sale in 
interstate or foreign commerce.
    Nothing in this Section shall be construed to authorize a 
municipality to impose a tax upon the privilege of engaging in 
any business which under the constitution of the United States 
may not be made the subject of taxation by this State.
    When certifying the amount of a monthly disbursement to a 
municipality under this Section, the Department shall increase 
or decrease such amount by an amount necessary to offset any 
misallocation of previous disbursements. The offset amount 
shall be the amount erroneously disbursed within the previous 
6 months from the time a misallocation is discovered.
    The Department of Revenue shall implement Public Act 
91-649 so as to collect the tax on and after January 1, 2002.
    As used in this Section, "municipal" and "municipality" 
mean a city, village, or incorporated town, including an 
incorporated town which has superseded a civil township.
    This Section shall be known and may be cited as the 
Non-Home Rule Municipal Retailers' Occupation Tax Act.
(Source: P.A. 101-10, eff. 6-5-19; 101-47, eff. 1-1-20; 
101-81, eff. 7-12-19; 101-604, eff. 12-13-19; 102-700, eff. 
4-19-22.)
 
    (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)
    Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation 
Tax Act. The corporate authorities of a non-home rule 
municipality may impose a tax upon all persons engaged, in 
such municipality, in the business of making sales of service 
for expenditure on public infrastructure or for property tax 
relief or both as defined in Section 8-11-1.2 if approved by 
referendum as provided in Section 8-11-1.1, of the selling 
price of all tangible personal property transferred by such 
servicemen either in the form of tangible personal property or 
in the form of real estate as an incident to a sale of service. 
If the tax is approved by referendum on or after July 14, 2010 
(the effective date of Public Act 96-1057), the corporate 
authorities of a non-home rule municipality may, until 
December 31, 2030, use the proceeds of the tax for expenditure 
on municipal operations, in addition to or in lieu of any 
expenditure on public infrastructure or for property tax 
relief. The tax imposed may not be more than 1% and may be 
imposed only in 1/4% increments. The tax may not be imposed on 
tangible personal property taxed at the 1% rate under the 
Service Occupation Tax Act (or at the 0% rate imposed under 
this amendatory Act of the 102nd General Assembly). Beginning 
December 1, 2019, this tax is not imposed on sales of aviation 
fuel unless the tax revenue is expended for airport-related 
purposes. If a municipality does not have an airport-related 
purpose to which it dedicates aviation fuel tax revenue, then 
aviation fuel is excluded from the tax. Each municipality must 
comply with the certification requirements for airport-related 
purposes under Section 2-22 of the Retailers' Occupation Tax 
Act. For purposes of this Section, "airport-related purposes" 
has the meaning ascribed in Section 6z-20.2 of the State 
Finance Act. This exclusion for aviation fuel only applies for 
so long as the revenue use requirements of 49 U.S.C. 47107(b) 
and 49 U.S.C. 47133 are binding on the municipality. The tax 
imposed by a municipality pursuant to this Section and all 
civil penalties that may be assessed as an incident thereof 
shall be collected and enforced by the State Department of 
Revenue. The certificate of registration which is issued by 
the Department to a retailer under the Retailers' Occupation 
Tax Act or under the Service Occupation Tax Act shall permit 
such registrant to engage in a business which is taxable under 
any ordinance or resolution enacted pursuant to this Section 
without registering separately with the Department under such 
ordinance or resolution or under this Section. The Department 
shall have full power to administer and enforce this Section; 
to collect all taxes and penalties due hereunder; to dispose 
of taxes and penalties so collected in the manner hereinafter 
provided, and to determine all rights to credit memoranda 
arising on account of the erroneous payment of tax or penalty 
hereunder. In the administration of, and compliance with, this 
Section the Department and persons who are subject to this 
Section shall have the same rights, remedies, privileges, 
immunities, powers and duties, and be subject to the same 
conditions, restrictions, limitations, penalties and 
definitions of terms, and employ the same modes of procedure, 
as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in 
respect to all provisions therein other than the State rate of 
tax), 4 (except that the reference to the State shall be to the 
taxing municipality), 5, 7, 8 (except that the jurisdiction to 
which the tax shall be a debt to the extent indicated in that 
Section 8 shall be the taxing municipality), 9 (except as to 
the disposition of taxes and penalties collected, and except 
that the returned merchandise credit for this municipal tax 
may not be taken against any State tax, and except that the 
retailer's discount is not allowed for taxes paid on aviation 
fuel that are subject to the revenue use requirements of 49 
U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except the 
reference therein to Section 2b of the Retailers' Occupation 
Tax Act), 13 (except that any reference to the State shall mean 
the taxing municipality), the first paragraph of Section 15, 
16, 17, 18, 19 and 20 of the Service Occupation Tax Act and 
Section 3-7 of the Uniform Penalty and Interest Act, as fully 
as if those provisions were set forth herein.
    No municipality may impose a tax under this Section unless 
the municipality also imposes a tax at the same rate under 
Section 8-11-1.3 of this Code.
    If, on January 1, 2025, a unit of local government has in 
effect a tax under this Section, or if, after January 1, 2025, 
a unit of local government imposes a tax under this Section, 
then that tax applies to leases of tangible personal property 
in effect, entered into, or renewed on or after that date in 
the same manner as the tax under this Section and in accordance 
with the changes made by this amendatory Act of the 103rd 
General Assembly. 
    Persons subject to any tax imposed pursuant to the 
authority granted in this Section may reimburse themselves for 
their serviceman's tax liability hereunder by separately 
stating such tax as an additional charge, which charge may be 
stated in combination, in a single amount, with State tax 
which servicemen are authorized to collect under the Service 
Use Tax Act, pursuant to such bracket schedules as the 
Department may prescribe.
    Whenever the Department determines that a refund should be 
made under this Section to a claimant instead of issuing 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the order to be drawn for the 
amount specified, and to the person named, in such 
notification from the Department. Such refund shall be paid by 
the State Treasurer out of the municipal retailers' occupation 
tax fund or the Local Government Aviation Trust Fund, as 
appropriate.
    Except as otherwise provided in this paragraph, the 
Department shall forthwith pay over to the State Treasurer, ex 
officio, as trustee, all taxes and penalties collected 
hereunder for deposit into the municipal retailers' occupation 
tax fund. Taxes and penalties collected on aviation fuel sold 
on or after December 1, 2019, shall be immediately paid over by 
the Department to the State Treasurer, ex officio, as trustee, 
for deposit into the Local Government Aviation Trust Fund. The 
Department shall only pay moneys into the Local Government 
Aviation Trust Fund under this Section for so long as the 
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
47133 are binding on the municipality. 
    As soon as possible after the first day of each month, 
beginning January 1, 2011, upon certification of the 
Department of Revenue, the Comptroller shall order 
transferred, and the Treasurer shall transfer, to the STAR 
Bonds Revenue Fund the local sales tax increment, as defined 
in the Innovation Development and Economy Act, collected under 
this Section during the second preceding calendar month for 
sales within a STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund, 
on or before the 25th day of each calendar month, the 
Department shall prepare and certify to the Comptroller the 
disbursement of stated sums of money to named municipalities, 
the municipalities to be those from which suppliers and 
servicemen have paid taxes or penalties hereunder to the 
Department during the second preceding calendar month. The 
amount to be paid to each municipality shall be the amount (not 
including credit memoranda and not including taxes and 
penalties collected on aviation fuel sold on or after December 
1, 2019) collected hereunder during the second preceding 
calendar month by the Department, and not including an amount 
equal to the amount of refunds made during the second 
preceding calendar month by the Department on behalf of such 
municipality, and not including any amounts that are 
transferred to the STAR Bonds Revenue Fund, less 1.5% of the 
remainder, which the Department shall transfer into the Tax 
Compliance and Administration Fund. The Department, at the 
time of each monthly disbursement to the municipalities, shall 
prepare and certify to the State Comptroller the amount to be 
transferred into the Tax Compliance and Administration Fund 
under this Section. Within 10 days after receipt, by the 
Comptroller, of the disbursement certification to the 
municipalities, the General Revenue Fund, and the Tax 
Compliance and Administration Fund provided for in this 
Section to be given to the Comptroller by the Department, the 
Comptroller shall cause the orders to be drawn for the 
respective amounts in accordance with the directions contained 
in such certification.
    The Department of Revenue shall implement Public Act 
91-649 so as to collect the tax on and after January 1, 2002.
    Nothing in this Section shall be construed to authorize a 
municipality to impose a tax upon the privilege of engaging in 
any business which under the constitution of the United States 
may not be made the subject of taxation by this State.
    As used in this Section, "municipal" or "municipality" 
means or refers to a city, village or incorporated town, 
including an incorporated town which has superseded a civil 
township.
    This Section shall be known and may be cited as the 
"Non-Home Rule Municipal Service Occupation Tax Act".
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
 
    (65 ILCS 5/8-11-1.6)
    Sec. 8-11-1.6. Non-home rule municipal retailers' 
occupation tax; municipalities between 20,000 and 25,000. The 
corporate authorities of a non-home rule municipality with a 
population of more than 20,000 but less than 25,000 that has, 
prior to January 1, 1987, established a Redevelopment Project 
Area that has been certified as a State Sales Tax Boundary and 
has issued bonds or otherwise incurred indebtedness to pay for 
costs in excess of $5,000,000, which is secured in part by a 
tax increment allocation fund, in accordance with the 
provisions of Division 11-74.4 of this Code may, by passage of 
an ordinance, impose a tax upon all persons engaged in the 
business of selling tangible personal property, other than on 
an item of tangible personal property that is titled and 
registered by an agency of this State's Government, at retail 
in the municipality. This tax may not be imposed on tangible 
personal property taxed at the 1% rate under the Retailers' 
Occupation Tax Act (or at the 0% rate imposed under this 
amendatory Act of the 102nd General Assembly). Beginning 
December 1, 2019, this tax is not imposed on sales of aviation 
fuel unless the tax revenue is expended for airport-related 
purposes. If a municipality does not have an airport-related 
purpose to which it dedicates aviation fuel tax revenue, then 
aviation fuel is excluded from the tax. Each municipality must 
comply with the certification requirements for airport-related 
purposes under Section 2-22 of the Retailers' Occupation Tax 
Act. For purposes of this Section, "airport-related purposes" 
has the meaning ascribed in Section 6z-20.2 of the State 
Finance Act. This exclusion for aviation fuel only applies for 
so long as the revenue use requirements of 49 U.S.C. 47107(b) 
and 49 U.S.C. 47133 are binding on the municipality. If 
imposed, the tax shall only be imposed in .25% increments of 
the gross receipts from such sales made in the course of 
business. Any tax imposed by a municipality under this Section 
and all civil penalties that may be assessed as an incident 
thereof shall be collected and enforced by the State 
Department of Revenue. An ordinance imposing a tax hereunder 
or effecting a change in the rate thereof shall be adopted and 
a certified copy thereof filed with the Department on or 
before the first day of October, whereupon the Department 
shall proceed to administer and enforce this Section as of the 
first day of January next following such adoption and filing. 
The certificate of registration that is issued by the 
Department to a retailer under the Retailers' Occupation Tax 
Act shall permit the retailer to engage in a business that is 
taxable under any ordinance or resolution enacted under this 
Section without registering separately with the Department 
under the ordinance or resolution or under this Section. The 
Department shall have full power to administer and enforce 
this Section, to collect all taxes and penalties due 
hereunder, to dispose of taxes and penalties so collected in 
the manner hereinafter provided, and to determine all rights 
to credit memoranda, arising on account of the erroneous 
payment of tax or penalty hereunder. In the administration of, 
and compliance with this Section, the Department and persons 
who are subject to this Section shall have the same rights, 
remedies, privileges, immunities, powers, and duties, and be 
subject to the same conditions, restrictions, limitations, 
penalties, and definitions of terms, and employ the same modes 
of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d, 
1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions 
therein other than the State rate of tax), 2c, 3 (except as to 
the disposition of taxes and penalties collected, and except 
that the retailer's discount is not allowed for taxes paid on 
aviation fuel that are subject to the revenue use requirements 
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 
5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 
10, 11, 12 and 13 of the Retailers' Occupation Tax Act and 
Section 3-7 of the Uniform Penalty and Interest Act as fully as 
if those provisions were set forth herein.
    A tax may not be imposed by a municipality under this 
Section unless the municipality also imposes a tax at the same 
rate under Section 8-11-1.7 of this Act.
    If, on January 1, 2025, a unit of local government has in 
effect a tax under this Section, or if, after January 1, 2025, 
a unit of local government imposes a tax under this Section, 
then that tax applies to leases of tangible personal property 
in effect, entered into, or renewed on or after that date in 
the same manner as the tax under this Section and in accordance 
with the changes made by this amendatory Act of the 103rd 
General Assembly. 
    Persons subject to any tax imposed under the authority 
granted in this Section may reimburse themselves for their 
seller's tax liability hereunder by separately stating the tax 
as an additional charge, which charge may be stated in 
combination, in a single amount, with State tax which sellers 
are required to collect under the Use Tax Act, pursuant to such 
bracket schedules as the Department may prescribe.
    Whenever the Department determines that a refund should be 
made under this Section to a claimant, instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the order to be drawn for the 
amount specified, and to the person named in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the Non-Home Rule Municipal Retailers' 
Occupation Tax Fund, which is hereby created or the Local 
Government Aviation Trust Fund, as appropriate.
    Except as otherwise provided in this paragraph, the 
Department shall forthwith pay over to the State Treasurer, ex 
officio, as trustee, all taxes and penalties collected 
hereunder for deposit into the Non-Home Rule Municipal 
Retailers' Occupation Tax Fund. Taxes and penalties collected 
on aviation fuel sold on or after December 1, 2019, shall be 
immediately paid over by the Department to the State 
Treasurer, ex officio, as trustee, for deposit into the Local 
Government Aviation Trust Fund. The Department shall only pay 
moneys into the Local Government Aviation Trust Fund under 
this Section for so long as the revenue use requirements of 49 
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
municipality. 
    As soon as possible after the first day of each month, 
beginning January 1, 2011, upon certification of the 
Department of Revenue, the Comptroller shall order 
transferred, and the Treasurer shall transfer, to the STAR 
Bonds Revenue Fund the local sales tax increment, as defined 
in the Innovation Development and Economy Act, collected under 
this Section during the second preceding calendar month for 
sales within a STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund, 
on or before the 25th day of each calendar month, the 
Department shall prepare and certify to the Comptroller the 
disbursement of stated sums of money to named municipalities, 
the municipalities to be those from which retailers have paid 
taxes or penalties hereunder to the Department during the 
second preceding calendar month. The amount to be paid to each 
municipality shall be the amount (not including credit 
memoranda and not including taxes and penalties collected on 
aviation fuel sold on or after December 1, 2019) collected 
hereunder during the second preceding calendar month by the 
Department plus an amount the Department determines is 
necessary to offset any amounts that were erroneously paid to 
a different taxing body, and not including an amount equal to 
the amount of refunds made during the second preceding 
calendar month by the Department on behalf of the 
municipality, and not including any amount that the Department 
determines is necessary to offset any amounts that were 
payable to a different taxing body but were erroneously paid 
to the municipality, and not including any amounts that are 
transferred to the STAR Bonds Revenue Fund, less 1.5% of the 
remainder, which the Department shall transfer into the Tax 
Compliance and Administration Fund. The Department, at the 
time of each monthly disbursement to the municipalities, shall 
prepare and certify to the State Comptroller the amount to be 
transferred into the Tax Compliance and Administration Fund 
under this Section. Within 10 days after receipt by the 
Comptroller of the disbursement certification to the 
municipalities and the Tax Compliance and Administration Fund 
provided for in this Section to be given to the Comptroller by 
the Department, the Comptroller shall cause the orders to be 
drawn for the respective amounts in accordance with the 
directions contained in the certification.
    For the purpose of determining the local governmental unit 
whose tax is applicable, a retail sale by a producer of coal or 
other mineral mined in Illinois is a sale at retail at the 
place where the coal or other mineral mined in Illinois is 
extracted from the earth. This paragraph does not apply to 
coal or other mineral when it is delivered or shipped by the 
seller to the purchaser at a point outside Illinois so that the 
sale is exempt under the federal Constitution as a sale in 
interstate or foreign commerce.
    Nothing in this Section shall be construed to authorize a 
municipality to impose a tax upon the privilege of engaging in 
any business which under the constitution of the United States 
may not be made the subject of taxation by this State.
    When certifying the amount of a monthly disbursement to a 
municipality under this Section, the Department shall increase 
or decrease the amount by an amount necessary to offset any 
misallocation of previous disbursements. The offset amount 
shall be the amount erroneously disbursed within the previous 
6 months from the time a misallocation is discovered.
    As used in this Section, "municipal" and "municipality" 
means a city, village, or incorporated town, including an 
incorporated town that has superseded a civil township.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
    (65 ILCS 5/8-11-1.7)
    Sec. 8-11-1.7. Non-home rule municipal service occupation 
tax; municipalities between 20,000 and 25,000. The corporate 
authorities of a non-home rule municipality with a population 
of more than 20,000 but less than 25,000 as determined by the 
last preceding decennial census that has, prior to January 1, 
1987, established a Redevelopment Project Area that has been 
certified as a State Sales Tax Boundary and has issued bonds or 
otherwise incurred indebtedness to pay for costs in excess of 
$5,000,000, which is secured in part by a tax increment 
allocation fund, in accordance with the provisions of Division 
11-74.4 of this Code may, by passage of an ordinance, impose a 
tax upon all persons engaged in the municipality in the 
business of making sales of service. If imposed, the tax shall 
only be imposed in .25% increments of the selling price of all 
tangible personal property transferred by such servicemen 
either in the form of tangible personal property or in the form 
of real estate as an incident to a sale of service. This tax 
may not be imposed on tangible personal property taxed at the 
1% rate under the Service Occupation Tax Act (or at the 0% rate 
imposed under this amendatory Act of the 102nd General 
Assembly). Beginning December 1, 2019, this tax is not imposed 
on sales of aviation fuel unless the tax revenue is expended 
for airport-related purposes. If a municipality does not have 
an airport-related purpose to which it dedicates aviation fuel 
tax revenue, then aviation fuel is excluded from the tax. Each 
municipality must comply with the certification requirements 
for airport-related purposes under Section 2-22 of the 
Retailers' Occupation Tax Act. For purposes of this Section, 
"airport-related purposes" has the meaning ascribed in Section 
6z-20.2 of the State Finance Act. This exclusion for aviation 
fuel only applies for so long as the revenue use requirements 
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
municipality. The tax imposed by a municipality under this 
Section and all civil penalties that may be assessed as an 
incident thereof shall be collected and enforced by the State 
Department of Revenue. An ordinance imposing a tax hereunder 
or effecting a change in the rate thereof shall be adopted and 
a certified copy thereof filed with the Department on or 
before the first day of October, whereupon the Department 
shall proceed to administer and enforce this Section as of the 
first day of January next following such adoption and filing. 
The certificate of registration that is issued by the 
Department to a retailer under the Retailers' Occupation Tax 
Act or under the Service Occupation Tax Act shall permit the 
registrant to engage in a business that is taxable under any 
ordinance or resolution enacted under this Section without 
registering separately with the Department under the ordinance 
or resolution or under this Section. The Department shall have 
full power to administer and enforce this Section, to collect 
all taxes and penalties due hereunder, to dispose of taxes and 
penalties so collected in a manner hereinafter provided, and 
to determine all rights to credit memoranda arising on account 
of the erroneous payment of tax or penalty hereunder. In the 
administration of and compliance with this Section, the 
Department and persons who are subject to this Section shall 
have the same rights, remedies, privileges, immunities, 
powers, and duties, and be subject to the same conditions, 
restrictions, limitations, penalties and definitions of terms, 
and employ the same modes of procedure, as are prescribed in 
Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all 
provisions therein other than the State rate of tax), 4 
(except that the reference to the State shall be to the taxing 
municipality), 5, 7, 8 (except that the jurisdiction to which 
the tax shall be a debt to the extent indicated in that Section 
8 shall be the taxing municipality), 9 (except as to the 
disposition of taxes and penalties collected, and except that 
the returned merchandise credit for this municipal tax may not 
be taken against any State tax, and except that the retailer's 
discount is not allowed for taxes paid on aviation fuel that 
are subject to the revenue use requirements of 49 U.S.C. 
47107(b) and 49 U.S.C. 47133), 10, 11, 12, (except the 
reference therein to Section 2b of the Retailers' Occupation 
Tax Act), 13 (except that any reference to the State shall mean 
the taxing municipality), the first paragraph of Sections 15, 
16, 17, 18, 19, and 20 of the Service Occupation Tax Act and 
Section 3-7 of the Uniform Penalty and Interest Act, as fully 
as if those provisions were set forth herein.
    A tax may not be imposed by a municipality under this 
Section unless the municipality also imposes a tax at the same 
rate under Section 8-11-1.6 of this Act.
    If, on January 1, 2025, a unit of local government has in 
effect a tax under this Section, or if, after January 1, 2025, 
a unit of local government imposes a tax under this Section, 
then that tax applies to leases of tangible personal property 
in effect, entered into, or renewed on or after that date in 
the same manner as the tax under this Section and in accordance 
with the changes made by this amendatory Act of the 103rd 
General Assembly. 
    Person subject to any tax imposed under the authority 
granted in this Section may reimburse themselves for their 
servicemen's tax liability hereunder by separately stating the 
tax as an additional charge, which charge may be stated in 
combination, in a single amount, with State tax that 
servicemen are authorized to collect under the Service Use Tax 
Act, under such bracket schedules as the Department may 
prescribe.
    Whenever the Department determines that a refund should be 
made under this Section to a claimant instead of issuing 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the order to be drawn for the 
amount specified, and to the person named, in such 
notification from the Department. The refund shall be paid by 
the State Treasurer out of the Non-Home Rule Municipal 
Retailers' Occupation Tax Fund or the Local Government 
Aviation Trust Fund, as appropriate.
    Except as otherwise provided in this paragraph, the 
Department shall forthwith pay over to the State Treasurer, ex 
officio, as trustee, all taxes and penalties collected 
hereunder for deposit into the Non-Home Rule Municipal 
Retailers' Occupation Tax Fund. Taxes and penalties collected 
on aviation fuel sold on or after December 1, 2019, shall be 
immediately paid over by the Department to the State 
Treasurer, ex officio, as trustee, for deposit into the Local 
Government Aviation Trust Fund. The Department shall only pay 
moneys into the Local Government Aviation Trust Fund under 
this Section for so long as the revenue use requirements of 49 
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
Municipality. 
    As soon as possible after the first day of each month, 
beginning January 1, 2011, upon certification of the 
Department of Revenue, the Comptroller shall order 
transferred, and the Treasurer shall transfer, to the STAR 
Bonds Revenue Fund the local sales tax increment, as defined 
in the Innovation Development and Economy Act, collected under 
this Section during the second preceding calendar month for 
sales within a STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund, 
on or before the 25th day of each calendar month, the 
Department shall prepare and certify to the Comptroller the 
disbursement of stated sums of money to named municipalities, 
the municipalities to be those from which suppliers and 
servicemen have paid taxes or penalties hereunder to the 
Department during the second preceding calendar month. The 
amount to be paid to each municipality shall be the amount (not 
including credit memoranda and not including taxes and 
penalties collected on aviation fuel sold on or after December 
1, 2019) collected hereunder during the second preceding 
calendar month by the Department, and not including an amount 
equal to the amount of refunds made during the second 
preceding calendar month by the Department on behalf of such 
municipality, and not including any amounts that are 
transferred to the STAR Bonds Revenue Fund, less 1.5% of the 
remainder, which the Department shall transfer into the Tax 
Compliance and Administration Fund. The Department, at the 
time of each monthly disbursement to the municipalities, shall 
prepare and certify to the State Comptroller the amount to be 
transferred into the Tax Compliance and Administration Fund 
under this Section. Within 10 days after receipt by the 
Comptroller of the disbursement certification to the 
municipalities, the Tax Compliance and Administration Fund, 
and the General Revenue Fund, provided for in this Section to 
be given to the Comptroller by the Department, the Comptroller 
shall cause the orders to be drawn for the respective amounts 
in accordance with the directions contained in the 
certification.
    When certifying the amount of a monthly disbursement to a 
municipality under this Section, the Department shall increase 
or decrease the amount by an amount necessary to offset any 
misallocation of previous disbursements. The offset amount 
shall be the amount erroneously disbursed within the previous 
6 months from the time a misallocation is discovered.
    Nothing in this Section shall be construed to authorize a 
municipality to impose a tax upon the privilege of engaging in 
any business which under the constitution of the United States 
may not be made the subject of taxation by this State.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
    (65 ILCS 5/11-74.3-6)
    Sec. 11-74.3-6. Business district revenue and obligations; 
business district tax allocation fund.
    (a) If the corporate authorities of a municipality have 
approved a business district plan, have designated a business 
district, and have elected to impose a tax by ordinance 
pursuant to subsection (10) or (11) of Section 11-74.3-3, then 
each year after the date of the approval of the ordinance but 
terminating upon the date all business district project costs 
and all obligations paying or reimbursing business district 
project costs, if any, have been paid, but in no event later 
than the dissolution date, all amounts generated by the 
retailers' occupation tax and service occupation tax shall be 
collected and the tax shall be enforced by the Department of 
Revenue in the same manner as all retailers' occupation taxes 
and service occupation taxes imposed in the municipality 
imposing the tax and all amounts generated by the hotel 
operators' occupation tax shall be collected and the tax shall 
be enforced by the municipality in the same manner as all hotel 
operators' occupation taxes imposed in the municipality 
imposing the tax. The corporate authorities of the 
municipality shall deposit the proceeds of the taxes imposed 
under subsections (10) and (11) of Section 11-74.3-3 into a 
special fund of the municipality called the "[Name of] 
Business District Tax Allocation Fund" for the purpose of 
paying or reimbursing business district project costs and 
obligations incurred in the payment of those costs.
    (b) The corporate authorities of a municipality that has 
designated a business district under this Law may, by 
ordinance, impose a Business District Retailers' Occupation 
Tax upon all persons engaged in the business of selling 
tangible personal property, other than an item of tangible 
personal property titled or registered with an agency of this 
State's government, at retail in the business district at a 
rate not to exceed 1% of the gross receipts from the sales made 
in the course of such business, to be imposed only in 0.25% 
increments. The tax may not be imposed on tangible personal 
property taxed at the rate of 1% under the Retailers' 
Occupation Tax Act (or at the 0% rate imposed under this 
amendatory Act of the 102nd General Assembly). Beginning 
December 1, 2019 and through December 31, 2020, this tax is not 
imposed on sales of aviation fuel unless the tax revenue is 
expended for airport-related purposes. If the District does 
not have an airport-related purpose to which it dedicates 
aviation fuel tax revenue, then aviation fuel is excluded from 
the tax. Each municipality must comply with the certification 
requirements for airport-related purposes under Section 2-22 
of the Retailers' Occupation Tax Act. For purposes of this 
Section, "airport-related purposes" has the meaning ascribed 
in Section 6z-20.2 of the State Finance Act. Beginning January 
1, 2021, this tax is not imposed on sales of aviation fuel for 
so long as the revenue use requirements of 49 U.S.C. 47107(b) 
and 49 U.S.C. 47133 are binding on the District.
    The tax imposed under this subsection and all civil 
penalties that may be assessed as an incident thereof shall be 
collected and enforced by the Department of Revenue. The 
certificate of registration that is issued by the Department 
to a retailer under the Retailers' Occupation Tax Act shall 
permit the retailer to engage in a business that is taxable 
under any ordinance or resolution enacted pursuant to this 
subsection without registering separately with the Department 
under such ordinance or resolution or under this subsection. 
The Department of Revenue shall have full power to administer 
and enforce this subsection; to collect all taxes and 
penalties due under this subsection in the manner hereinafter 
provided; and to determine all rights to credit memoranda 
arising on account of the erroneous payment of tax or penalty 
under this subsection. In the administration of, and 
compliance with, this subsection, the Department and persons 
who are subject to this subsection shall have the same rights, 
remedies, privileges, immunities, powers and duties, and be 
subject to the same conditions, restrictions, limitations, 
penalties, exclusions, exemptions, and definitions of terms 
and employ the same modes of procedure, as are prescribed in 
Sections 1, 1a through 1o, 2 through 2-65 (in respect to all 
provisions therein other than the State rate of tax), 2c 
through 2h, 3 (except as to the disposition of taxes and 
penalties collected, and except that the retailer's discount 
is not allowed for taxes paid on aviation fuel that are subject 
to the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 
6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the Retailers' 
Occupation Tax Act and all provisions of the Uniform Penalty 
and Interest Act, as fully as if those provisions were set 
forth herein.
    Persons subject to any tax imposed under this subsection 
may reimburse themselves for their seller's tax liability 
under this subsection by separately stating the tax as an 
additional charge, which charge may be stated in combination, 
in a single amount, with State taxes that sellers are required 
to collect under the Use Tax Act, in accordance with such 
bracket schedules as the Department may prescribe.
    Whenever the Department determines that a refund should be 
made under this subsection to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the order to be drawn for the 
amount specified and to the person named in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the business district retailers' occupation 
tax fund or the Local Government Aviation Trust Fund, as 
appropriate.
    Except as otherwise provided in this paragraph, the 
Department shall immediately pay over to the State Treasurer, 
ex officio, as trustee, all taxes, penalties, and interest 
collected under this subsection for deposit into the business 
district retailers' occupation tax fund. Taxes and penalties 
collected on aviation fuel sold on or after December 1, 2019, 
shall be immediately paid over by the Department to the State 
Treasurer, ex officio, as trustee, for deposit into the Local 
Government Aviation Trust Fund. The Department shall only pay 
moneys into the Local Government Aviation Trust Fund under 
this Section for so long as the revenue use requirements of 49 
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
District. 
    As soon as possible after the first day of each month, 
beginning January 1, 2011, upon certification of the 
Department of Revenue, the Comptroller shall order 
transferred, and the Treasurer shall transfer, to the STAR 
Bonds Revenue Fund the local sales tax increment, as defined 
in the Innovation Development and Economy Act, collected under 
this subsection during the second preceding calendar month for 
sales within a STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund, 
on or before the 25th day of each calendar month, the 
Department shall prepare and certify to the Comptroller the 
disbursement of stated sums of money to named municipalities 
from the business district retailers' occupation tax fund, the 
municipalities to be those from which retailers have paid 
taxes or penalties under this subsection to the Department 
during the second preceding calendar month. The amount to be 
paid to each municipality shall be the amount (not including 
credit memoranda and not including taxes and penalties 
collected on aviation fuel sold on or after December 1, 2019) 
collected under this subsection during the second preceding 
calendar month by the Department plus an amount the Department 
determines is necessary to offset any amounts that were 
erroneously paid to a different taxing body, and not including 
an amount equal to the amount of refunds made during the second 
preceding calendar month by the Department, less 2% of that 
amount (except the amount collected on aviation fuel sold on 
or after December 1, 2019), which shall be deposited into the 
Tax Compliance and Administration Fund and shall be used by 
the Department, subject to appropriation, to cover the costs 
of the Department in administering and enforcing the 
provisions of this subsection, on behalf of such municipality, 
and not including any amount that the Department determines is 
necessary to offset any amounts that were payable to a 
different taxing body but were erroneously paid to the 
municipality, and not including any amounts that are 
transferred to the STAR Bonds Revenue Fund. Within 10 days 
after receipt by the Comptroller of the disbursement 
certification to the municipalities provided for in this 
subsection to be given to the Comptroller by the Department, 
the Comptroller shall cause the orders to be drawn for the 
respective amounts in accordance with the directions contained 
in the certification. The proceeds of the tax paid to 
municipalities under this subsection shall be deposited into 
the Business District Tax Allocation Fund by the municipality. 
    An ordinance imposing or discontinuing the tax under this 
subsection or effecting a change in the rate thereof shall 
either (i) be adopted and a certified copy thereof filed with 
the Department on or before the first day of April, whereupon 
the Department, if all other requirements of this subsection 
are met, shall proceed to administer and enforce this 
subsection as of the first day of July next following the 
adoption and filing; or (ii) be adopted and a certified copy 
thereof filed with the Department on or before the first day of 
October, whereupon, if all other requirements of this 
subsection are met, the Department shall proceed to administer 
and enforce this subsection as of the first day of January next 
following the adoption and filing.
    The Department of Revenue shall not administer or enforce 
an ordinance imposing, discontinuing, or changing the rate of 
the tax under this subsection, until the municipality also 
provides, in the manner prescribed by the Department, the 
boundaries of the business district and each address in the 
business district in such a way that the Department can 
determine by its address whether a business is located in the 
business district. The municipality must provide this boundary 
and address information to the Department on or before April 1 
for administration and enforcement of the tax under this 
subsection by the Department beginning on the following July 1 
and on or before October 1 for administration and enforcement 
of the tax under this subsection by the Department beginning 
on the following January 1. The Department of Revenue shall 
not administer or enforce any change made to the boundaries of 
a business district or address change, addition, or deletion 
until the municipality reports the boundary change or address 
change, addition, or deletion to the Department in the manner 
prescribed by the Department. The municipality must provide 
this boundary change information or address change, addition, 
or deletion to the Department on or before April 1 for 
administration and enforcement by the Department of the change 
beginning on the following July 1 and on or before October 1 
for administration and enforcement by the Department of the 
change beginning on the following January 1. The retailers in 
the business district shall be responsible for charging the 
tax imposed under this subsection. If a retailer is 
incorrectly included or excluded from the list of those 
required to collect the tax under this subsection, both the 
Department of Revenue and the retailer shall be held harmless 
if they reasonably relied on information provided by the 
municipality.
    A municipality that imposes the tax under this subsection 
must submit to the Department of Revenue any other information 
as the Department may require for the administration and 
enforcement of the tax. 
    When certifying the amount of a monthly disbursement to a 
municipality under this subsection, the Department shall 
increase or decrease the amount by an amount necessary to 
offset any misallocation of previous disbursements. The offset 
amount shall be the amount erroneously disbursed within the 
previous 6 months from the time a misallocation is discovered.
    Nothing in this subsection shall be construed to authorize 
the municipality to impose a tax upon the privilege of 
engaging in any business which under the Constitution of the 
United States may not be made the subject of taxation by this 
State.
    If a tax is imposed under this subsection (b), a tax shall 
also be imposed under subsection (c) of this Section.
    (c) If a tax has been imposed under subsection (b), a 
Business District Service Occupation Tax shall also be imposed 
upon all persons engaged, in the business district, in the 
business of making sales of service, who, as an incident to 
making those sales of service, transfer tangible personal 
property within the business district, either in the form of 
tangible personal property or in the form of real estate as an 
incident to a sale of service. The tax shall be imposed at the 
same rate as the tax imposed in subsection (b) and shall not 
exceed 1% of the selling price of tangible personal property 
so transferred within the business district, to be imposed 
only in 0.25% increments. The tax may not be imposed on 
tangible personal property taxed at the 1% rate under the 
Service Occupation Tax Act (or at the 0% rate imposed under 
this amendatory Act of the 102nd General Assembly). Beginning 
December 1, 2019, this tax is not imposed on sales of aviation 
fuel unless the tax revenue is expended for airport-related 
purposes. If the District does not have an airport-related 
purpose to which it dedicates aviation fuel tax revenue, then 
aviation fuel is excluded from the tax. Each municipality must 
comply with the certification requirements for airport-related 
purposes under Section 2-22 of the Retailers' Occupation Tax 
Act. For purposes of this Act, "airport-related purposes" has 
the meaning ascribed in Section 6z-20.2 of the State Finance 
Act. Beginning January 1, 2021, this tax is not imposed on 
sales of aviation fuel for so long as the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
binding on the District.
    The tax imposed under this subsection and all civil 
penalties that may be assessed as an incident thereof shall be 
collected and enforced by the Department of Revenue. The 
certificate of registration which is issued by the Department 
to a retailer under the Retailers' Occupation Tax Act or under 
the Service Occupation Tax Act shall permit such registrant to 
engage in a business which is taxable under any ordinance or 
resolution enacted pursuant to this subsection without 
registering separately with the Department under such 
ordinance or resolution or under this subsection. The 
Department of Revenue shall have full power to administer and 
enforce this subsection; to collect all taxes and penalties 
due under this subsection; to dispose of taxes and penalties 
so collected in the manner hereinafter provided; and to 
determine all rights to credit memoranda arising on account of 
the erroneous payment of tax or penalty under this subsection. 
In the administration of, and compliance with this subsection, 
the Department and persons who are subject to this subsection 
shall have the same rights, remedies, privileges, immunities, 
powers and duties, and be subject to the same conditions, 
restrictions, limitations, penalties, exclusions, exemptions, 
and definitions of terms and employ the same modes of 
procedure as are prescribed in Sections 2, 2a through 2d, 3 
through 3-50 (in respect to all provisions therein other than 
the State rate of tax), 4 (except that the reference to the 
State shall be to the business district), 5, 7, 8 (except that 
the jurisdiction to which the tax shall be a debt to the extent 
indicated in that Section 8 shall be the municipality), 9 
(except as to the disposition of taxes and penalties 
collected, and except that the returned merchandise credit for 
this tax may not be taken against any State tax, and except 
that the retailer's discount is not allowed for taxes paid on 
aviation fuel that are subject to the revenue use requirements 
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except 
the reference therein to Section 2b of the Retailers' 
Occupation Tax Act), 13 (except that any reference to the 
State shall mean the municipality), the first paragraph of 
Section 15, and Sections 16, 17, 18, 19 and 20 of the Service 
Occupation Tax Act and all provisions of the Uniform Penalty 
and Interest Act, as fully as if those provisions were set 
forth herein.
    Persons subject to any tax imposed under the authority 
granted in this subsection may reimburse themselves for their 
serviceman's tax liability hereunder by separately stating the 
tax as an additional charge, which charge may be stated in 
combination, in a single amount, with State tax that 
servicemen are authorized to collect under the Service Use Tax 
Act, in accordance with such bracket schedules as the 
Department may prescribe.
    Whenever the Department determines that a refund should be 
made under this subsection to a claimant instead of issuing 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the order to be drawn for the 
amount specified, and to the person named, in such 
notification from the Department. Such refund shall be paid by 
the State Treasurer out of the business district retailers' 
occupation tax fund or the Local Government Aviation Trust 
Fund, as appropriate.
    Except as otherwise provided in this paragraph, the 
Department shall forthwith pay over to the State Treasurer, 
ex-officio, as trustee, all taxes, penalties, and interest 
collected under this subsection for deposit into the business 
district retailers' occupation tax fund. Taxes and penalties 
collected on aviation fuel sold on or after December 1, 2019, 
shall be immediately paid over by the Department to the State 
Treasurer, ex officio, as trustee, for deposit into the Local 
Government Aviation Trust Fund. The Department shall only pay 
moneys into the Local Government Aviation Trust Fund under 
this Section for so long as the revenue use requirements of 49 
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
District.
    As soon as possible after the first day of each month, 
beginning January 1, 2011, upon certification of the 
Department of Revenue, the Comptroller shall order 
transferred, and the Treasurer shall transfer, to the STAR 
Bonds Revenue Fund the local sales tax increment, as defined 
in the Innovation Development and Economy Act, collected under 
this subsection during the second preceding calendar month for 
sales within a STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund, 
on or before the 25th day of each calendar month, the 
Department shall prepare and certify to the Comptroller the 
disbursement of stated sums of money to named municipalities 
from the business district retailers' occupation tax fund, the 
municipalities to be those from which suppliers and servicemen 
have paid taxes or penalties under this subsection to the 
Department during the second preceding calendar month. The 
amount to be paid to each municipality shall be the amount (not 
including credit memoranda and not including taxes and 
penalties collected on aviation fuel sold on or after December 
1, 2019) collected under this subsection during the second 
preceding calendar month by the Department, less 2% of that 
amount (except the amount collected on aviation fuel sold on 
or after December 1, 2019), which shall be deposited into the 
Tax Compliance and Administration Fund and shall be used by 
the Department, subject to appropriation, to cover the costs 
of the Department in administering and enforcing the 
provisions of this subsection, and not including an amount 
equal to the amount of refunds made during the second 
preceding calendar month by the Department on behalf of such 
municipality, and not including any amounts that are 
transferred to the STAR Bonds Revenue Fund. Within 10 days 
after receipt, by the Comptroller, of the disbursement 
certification to the municipalities, provided for in this 
subsection to be given to the Comptroller by the Department, 
the Comptroller shall cause the orders to be drawn for the 
respective amounts in accordance with the directions contained 
in such certification. The proceeds of the tax paid to 
municipalities under this subsection shall be deposited into 
the Business District Tax Allocation Fund by the municipality.
    An ordinance imposing or discontinuing the tax under this 
subsection or effecting a change in the rate thereof shall 
either (i) be adopted and a certified copy thereof filed with 
the Department on or before the first day of April, whereupon 
the Department, if all other requirements of this subsection 
are met, shall proceed to administer and enforce this 
subsection as of the first day of July next following the 
adoption and filing; or (ii) be adopted and a certified copy 
thereof filed with the Department on or before the first day of 
October, whereupon, if all other conditions of this subsection 
are met, the Department shall proceed to administer and 
enforce this subsection as of the first day of January next 
following the adoption and filing.
    The Department of Revenue shall not administer or enforce 
an ordinance imposing, discontinuing, or changing the rate of 
the tax under this subsection, until the municipality also 
provides, in the manner prescribed by the Department, the 
boundaries of the business district in such a way that the 
Department can determine by its address whether a business is 
located in the business district. The municipality must 
provide this boundary and address information to the 
Department on or before April 1 for administration and 
enforcement of the tax under this subsection by the Department 
beginning on the following July 1 and on or before October 1 
for administration and enforcement of the tax under this 
subsection by the Department beginning on the following 
January 1. The Department of Revenue shall not administer or 
enforce any change made to the boundaries of a business 
district or address change, addition, or deletion until the 
municipality reports the boundary change or address change, 
addition, or deletion to the Department in the manner 
prescribed by the Department. The municipality must provide 
this boundary change information or address change, addition, 
or deletion to the Department on or before April 1 for 
administration and enforcement by the Department of the change 
beginning on the following July 1 and on or before October 1 
for administration and enforcement by the Department of the 
change beginning on the following January 1. The retailers in 
the business district shall be responsible for charging the 
tax imposed under this subsection. If a retailer is 
incorrectly included or excluded from the list of those 
required to collect the tax under this subsection, both the 
Department of Revenue and the retailer shall be held harmless 
if they reasonably relied on information provided by the 
municipality.
    A municipality that imposes the tax under this subsection 
must submit to the Department of Revenue any other information 
as the Department may require for the administration and 
enforcement of the tax. 
    Nothing in this subsection shall be construed to authorize 
the municipality to impose a tax upon the privilege of 
engaging in any business which under the Constitution of the 
United States may not be made the subject of taxation by the 
State.
    If a tax is imposed under this subsection (c), a tax shall 
also be imposed under subsection (b) of this Section.
    (c-5) If, on January 1, 2025, a unit of local government 
has in effect a tax under this Section, or if, after January 1, 
2025, a unit of local government imposes a tax under this 
Section, then that tax applies to leases of tangible personal 
property in effect, entered into, or renewed on or after that 
date in the same manner as the tax under this Section and in 
accordance with the changes made by this amendatory Act of the 
103rd General Assembly. 
    (d) By ordinance, a municipality that has designated a 
business district under this Law may impose an occupation tax 
upon all persons engaged in the business district in the 
business of renting, leasing, or letting rooms in a hotel, as 
defined in the Hotel Operators' Occupation Tax Act, at a rate 
not to exceed 1% of the gross rental receipts from the renting, 
leasing, or letting of hotel rooms within the business 
district, to be imposed only in 0.25% increments, excluding, 
however, from gross rental receipts the proceeds of renting, 
leasing, or letting to permanent residents of a hotel, as 
defined in the Hotel Operators' Occupation Tax Act, and 
proceeds from the tax imposed under subsection (c) of Section 
13 of the Metropolitan Pier and Exposition Authority Act.
    The tax imposed by the municipality under this subsection 
and all civil penalties that may be assessed as an incident to 
that tax shall be collected and enforced by the municipality 
imposing the tax. The municipality shall have full power to 
administer and enforce this subsection, to collect all taxes 
and penalties due under this subsection, to dispose of taxes 
and penalties so collected in the manner provided in this 
subsection, and to determine all rights to credit memoranda 
arising on account of the erroneous payment of tax or penalty 
under this subsection. In the administration of and compliance 
with this subsection, the municipality and persons who are 
subject to this subsection shall have the same rights, 
remedies, privileges, immunities, powers, and duties, shall be 
subject to the same conditions, restrictions, limitations, 
penalties, and definitions of terms, and shall employ the same 
modes of procedure as are employed with respect to a tax 
adopted by the municipality under Section 8-3-14 of this Code.
    Persons subject to any tax imposed under the authority 
granted in this subsection may reimburse themselves for their 
tax liability for that tax by separately stating that tax as an 
additional charge, which charge may be stated in combination, 
in a single amount, with State taxes imposed under the Hotel 
Operators' Occupation Tax Act, and with any other tax.
    Nothing in this subsection shall be construed to authorize 
a municipality to impose a tax upon the privilege of engaging 
in any business which under the Constitution of the United 
States may not be made the subject of taxation by this State.
    The proceeds of the tax imposed under this subsection 
shall be deposited into the Business District Tax Allocation 
Fund. 
    (e) Obligations secured by the Business District Tax 
Allocation Fund may be issued to provide for the payment or 
reimbursement of business district project costs. Those 
obligations, when so issued, shall be retired in the manner 
provided in the ordinance authorizing the issuance of those 
obligations by the receipts of taxes imposed pursuant to 
subsections (10) and (11) of Section 11-74.3-3 and by other 
revenue designated or pledged by the municipality. A 
municipality may in the ordinance pledge, for any period of 
time up to and including the dissolution date, all or any part 
of the funds in and to be deposited in the Business District 
Tax Allocation Fund to the payment of business district 
project costs and obligations. Whenever a municipality pledges 
all of the funds to the credit of a business district tax 
allocation fund to secure obligations issued or to be issued 
to pay or reimburse business district project costs, the 
municipality may specifically provide that funds remaining to 
the credit of such business district tax allocation fund after 
the payment of such obligations shall be accounted for 
annually and shall be deemed to be "surplus" funds, and such 
"surplus" funds shall be expended by the municipality for any 
business district project cost as approved in the business 
district plan. Whenever a municipality pledges less than all 
of the monies to the credit of a business district tax 
allocation fund to secure obligations issued or to be issued 
to pay or reimburse business district project costs, the 
municipality shall provide that monies to the credit of the 
business district tax allocation fund and not subject to such 
pledge or otherwise encumbered or required for payment of 
contractual obligations for specific business district project 
costs shall be calculated annually and shall be deemed to be 
"surplus" funds, and such "surplus" funds shall be expended by 
the municipality for any business district project cost as 
approved in the business district plan.
    No obligation issued pursuant to this Law and secured by a 
pledge of all or any portion of any revenues received or to be 
received by the municipality from the imposition of taxes 
pursuant to subsection (10) of Section 11-74.3-3, shall be 
deemed to constitute an economic incentive agreement under 
Section 8-11-20, notwithstanding the fact that such pledge 
provides for the sharing, rebate, or payment of retailers' 
occupation taxes or service occupation taxes imposed pursuant 
to subsection (10) of Section 11-74.3-3 and received or to be 
received by the municipality from the development or 
redevelopment of properties in the business district. 
    Without limiting the foregoing in this Section, the 
municipality may further secure obligations secured by the 
business district tax allocation fund with a pledge, for a 
period not greater than the term of the obligations and in any 
case not longer than the dissolution date, of any part or any 
combination of the following: (i) net revenues of all or part 
of any business district project; (ii) taxes levied or imposed 
by the municipality on any or all property in the 
municipality, including, specifically, taxes levied or imposed 
by the municipality in a special service area pursuant to the 
Special Service Area Tax Law; (iii) the full faith and credit 
of the municipality; (iv) a mortgage on part or all of the 
business district project; or (v) any other taxes or 
anticipated receipts that the municipality may lawfully 
pledge. 
    Such obligations may be issued in one or more series, bear 
such date or dates, become due at such time or times as therein 
provided, but in any case not later than (i) 20 years after the 
date of issue or (ii) the dissolution date, whichever is 
earlier, bear interest payable at such intervals and at such 
rate or rates as set forth therein, except as may be limited by 
applicable law, which rate or rates may be fixed or variable, 
be in such denominations, be in such form, either coupon, 
registered, or book-entry, carry such conversion, registration 
and exchange privileges, be subject to defeasance upon such 
terms, have such rank or priority, be executed in such manner, 
be payable in such medium or payment at such place or places 
within or without the State, make provision for a corporate 
trustee within or without the State with respect to such 
obligations, prescribe the rights, powers, and duties thereof 
to be exercised for the benefit of the municipality and the 
benefit of the owners of such obligations, provide for the 
holding in trust, investment, and use of moneys, funds, and 
accounts held under an ordinance, provide for assignment of 
and direct payment of the moneys to pay such obligations or to 
be deposited into such funds or accounts directly to such 
trustee, be subject to such terms of redemption with or 
without premium, and be sold at such price, all as the 
corporate authorities shall determine. No referendum approval 
of the electors shall be required as a condition to the 
issuance of obligations pursuant to this Law except as 
provided in this Section. 
    In the event the municipality authorizes the issuance of 
obligations pursuant to the authority of this Law secured by 
the full faith and credit of the municipality, or pledges ad 
valorem taxes pursuant to this subsection, which obligations 
are other than obligations which may be issued under home rule 
powers provided by Section 6 of Article VII of the Illinois 
Constitution or which ad valorem taxes are other than ad 
valorem taxes which may be pledged under home rule powers 
provided by Section 6 of Article VII of the Illinois 
Constitution or which are levied in a special service area 
pursuant to the Special Service Area Tax Law, the ordinance 
authorizing the issuance of those obligations or pledging 
those taxes shall be published within 10 days after the 
ordinance has been adopted, in a newspaper having a general 
circulation within the municipality. The publication of the 
ordinance shall be accompanied by a notice of (i) the specific 
number of voters required to sign a petition requesting the 
question of the issuance of the obligations or pledging such 
ad valorem taxes to be submitted to the electors; (ii) the time 
within which the petition must be filed; and (iii) the date of 
the prospective referendum. The municipal clerk shall provide 
a petition form to any individual requesting one. 
    If no petition is filed with the municipal clerk, as 
hereinafter provided in this Section, within 21 days after the 
publication of the ordinance, the ordinance shall be in 
effect. However, if within that 21-day period a petition is 
filed with the municipal clerk, signed by electors numbering 
not less than 15% of the number of electors voting for the 
mayor or president at the last general municipal election, 
asking that the question of issuing obligations using full 
faith and credit of the municipality as security for the cost 
of paying or reimbursing business district project costs, or 
of pledging such ad valorem taxes for the payment of those 
obligations, or both, be submitted to the electors of the 
municipality, the municipality shall not be authorized to 
issue obligations of the municipality using the full faith and 
credit of the municipality as security or pledging such ad 
valorem taxes for the payment of those obligations, or both, 
until the proposition has been submitted to and approved by a 
majority of the voters voting on the proposition at a 
regularly scheduled election. The municipality shall certify 
the proposition to the proper election authorities for 
submission in accordance with the general election law.
    The ordinance authorizing the obligations may provide that 
the obligations shall contain a recital that they are issued 
pursuant to this Law, which recital shall be conclusive 
evidence of their validity and of the regularity of their 
issuance.
    In the event the municipality authorizes issuance of 
obligations pursuant to this Law secured by the full faith and 
credit of the municipality, the ordinance authorizing the 
obligations may provide for the levy and collection of a 
direct annual tax upon all taxable property within the 
municipality sufficient to pay the principal thereof and 
interest thereon as it matures, which levy may be in addition 
to and exclusive of the maximum of all other taxes authorized 
to be levied by the municipality, which levy, however, shall 
be abated to the extent that monies from other sources are 
available for payment of the obligations and the municipality 
certifies the amount of those monies available to the county 
clerk.
    A certified copy of the ordinance shall be filed with the 
county clerk of each county in which any portion of the 
municipality is situated, and shall constitute the authority 
for the extension and collection of the taxes to be deposited 
in the business district tax allocation fund.
    A municipality may also issue its obligations to refund, 
in whole or in part, obligations theretofore issued by the 
municipality under the authority of this Law, whether at or 
prior to maturity. However, the last maturity of the refunding 
obligations shall not be expressed to mature later than the 
dissolution date.
    In the event a municipality issues obligations under home 
rule powers or other legislative authority, the proceeds of 
which are pledged to pay or reimburse business district 
project costs, the municipality may, if it has followed the 
procedures in conformance with this Law, retire those 
obligations from funds in the business district tax allocation 
fund in amounts and in such manner as if those obligations had 
been issued pursuant to the provisions of this Law.
    No obligations issued pursuant to this Law shall be 
regarded as indebtedness of the municipality issuing those 
obligations or any other taxing district for the purpose of 
any limitation imposed by law.
    Obligations issued pursuant to this Law shall not be 
subject to the provisions of the Bond Authorization Act. 
    (f) When business district project costs, including, 
without limitation, all obligations paying or reimbursing 
business district project costs have been paid, any surplus 
funds then remaining in the Business District Tax Allocation 
Fund shall be distributed to the municipal treasurer for 
deposit into the general corporate fund of the municipality. 
Upon payment of all business district project costs and 
retirement of all obligations paying or reimbursing business 
district project costs, but in no event more than 23 years 
after the date of adoption of the ordinance imposing taxes 
pursuant to subsection (10) or (11) of Section 11-74.3-3, the 
municipality shall adopt an ordinance immediately rescinding 
the taxes imposed pursuant to subsection (10) or (11) of 
Section 11-74.3-3. 
(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19; 
102-700, eff. 4-19-22.)
 
    Section 75-40. The Civic Center Code is amended by 
changing Section 245-12 as follows:
 
    (70 ILCS 200/245-12)
    Sec. 245-12. Use and occupation taxes. 
    (a) The Authority may adopt a resolution that authorizes a 
referendum on the question of whether the Authority shall be 
authorized to impose a retailers' occupation tax, a service 
occupation tax, and a use tax in one-quarter percent 
increments at a rate not to exceed 1%. The Authority shall 
certify the question to the proper election authorities who 
shall submit the question to the voters of the metropolitan 
area at the next regularly scheduled election in accordance 
with the general election law. The question shall be in 
substantially the following form: 
    "Shall the Salem Civic Center Authority be authorized to 
    impose a retailers' occupation tax, a service occupation 
    tax, and a use tax at the rate of (rate) for the sole 
    purpose of obtaining funds for the support, construction, 
    maintenance, or financing of a facility of the Authority?"
    Votes shall be recorded as "yes" or "no". 
    If a majority of all votes cast on the proposition are in 
favor of the proposition, the Authority is authorized to 
impose the tax.
    (b) The Authority shall impose the retailers' occupation 
tax upon all persons engaged in the business of selling 
tangible personal property at retail in the metropolitan area, 
at the rate approved by referendum, on the gross receipts from 
the sales made in the course of such business within the 
metropolitan area. Beginning December 1, 2019 and through 
December 31, 2020, this tax is not imposed on sales of aviation 
fuel unless the tax revenue is expended for airport-related 
purposes. If the Authority does not have an airport-related 
purpose to which it dedicates aviation fuel tax revenue, then 
aviation fuel is excluded from the tax. The Authority must 
comply with the certification requirements for airport-related 
purposes under Section 2-22 of the Retailers' Occupation Tax 
Act. For purposes of this Section, "airport-related purposes" 
has the meaning ascribed in Section 6z-20.2 of the State 
Finance Act. Beginning January 1, 2021, this tax is not 
imposed on sales of aviation fuel for so long as the revenue 
use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
binding on the Authority. 
    The tax imposed under this Section and all civil penalties 
that may be assessed as an incident thereof shall be collected 
and enforced by the Department of Revenue. The Department has 
full power to administer and enforce this Section; to collect 
all taxes and penalties so collected in the manner provided in 
this Section; and to determine all rights to credit memoranda 
arising on account of the erroneous payment of tax or penalty 
hereunder. In the administration of, and compliance with, this 
Section, the Department and persons who are subject to this 
Section shall (i) have the same rights, remedies, privileges, 
immunities, powers and duties, (ii) be subject to the same 
conditions, restrictions, limitations, penalties, exclusions, 
exemptions, and definitions of terms, and (iii) employ the 
same modes of procedure as are prescribed in Sections 1, 1a, 
1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 
(in respect to all provisions therein other than the State 
rate of tax), 2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except as 
to the disposition of taxes and penalties collected and 
provisions related to quarter monthly payments, and except 
that the retailer's discount is not allowed for taxes paid on 
aviation fuel that are subject to the revenue use requirements 
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 
5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 
11a, 12, and 13 of the Retailers' Occupation Tax Act and 
Section 3-7 of the Uniform Penalty and Interest Act, as fully 
as if those provisions were set forth in this subsection.
    Persons subject to any tax imposed under this subsection 
may reimburse themselves for their seller's tax liability by 
separately stating the tax as an additional charge, which 
charge may be stated in combination, in a single amount, with 
State taxes that sellers are required to collect, in 
accordance with such bracket schedules as the Department may 
prescribe.
    Whenever the Department determines that a refund should be 
made under this subsection to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the warrant to be drawn for the 
amount specified, and to the person named, in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the tax fund referenced under paragraph (g) 
of this Section or the Local Government Aviation Trust Fund, 
as appropriate.
    If a tax is imposed under this subsection (b), a tax shall 
also be imposed at the same rate under subsections (c) and (d) 
of this Section.
    For the purpose of determining whether a tax authorized 
under this Section is applicable, a retail sale, by a producer 
of coal or other mineral mined in Illinois, is a sale at retail 
at the place where the coal or other mineral mined in Illinois 
is extracted from the earth. This paragraph does not apply to 
coal or other mineral when it is delivered or shipped by the 
seller to the purchaser at a point outside Illinois so that the 
sale is exempt under the Federal Constitution as a sale in 
interstate or foreign commerce.
    Nothing in this Section shall be construed to authorize 
the Authority to impose a tax upon the privilege of engaging in 
any business which under the Constitution of the United States 
may not be made the subject of taxation by this State.
    (c) If a tax has been imposed under subsection (b), a 
service occupation tax shall also be imposed at the same rate 
upon all persons engaged, in the metropolitan area, in the 
business of making sales of service, who, as an incident to 
making those sales of service, transfer tangible personal 
property within the metropolitan area as an incident to a sale 
of service. The tax imposed under this subsection and all 
civil penalties that may be assessed as an incident thereof 
shall be collected and enforced by the Department of Revenue. 
    Beginning December 1, 2019 and through December 31, 2020, 
this tax is not imposed on sales of aviation fuel unless the 
tax revenue is expended for airport-related purposes. If the 
Authority does not have an airport-related purpose to which it 
dedicates aviation fuel tax revenue, then aviation fuel is 
excluded from the tax. The Authority must comply with the 
certification requirements for airport-related purposes under 
Section 2-22 of the Retailers' Occupation Tax Act. Beginning 
January 1, 2021, this tax is not imposed on sales of aviation 
fuel for so long as the revenue use requirements of 49 U.S.C. 
47107(b) and 49 U.S.C. 47133 are binding on the Authority. 
    The Department has full power to administer and enforce 
this paragraph; to collect all taxes and penalties due 
hereunder; to dispose of taxes and penalties so collected in 
the manner hereinafter provided; and to determine all rights 
to credit memoranda arising on account of the erroneous 
payment of tax or penalty hereunder. In the administration of, 
and compliance with this paragraph, the Department and persons 
who are subject to this paragraph shall (i) have the same 
rights, remedies, privileges, immunities, powers, and duties, 
(ii) be subject to the same conditions, restrictions, 
limitations, penalties, exclusions, exemptions, and 
definitions of terms, and (iii) employ the same modes of 
procedure as are prescribed in Sections 2 (except that the 
reference to State in the definition of supplier maintaining a 
place of business in this State shall mean the metropolitan 
area), 2a, 2b, 3 through 3-55 (in respect to all provisions 
therein other than the State rate of tax), 4 (except that the 
reference to the State shall be to the Authority), 5, 7, 8 
(except that the jurisdiction to which the tax shall be a debt 
to the extent indicated in that Section 8 shall be the 
Authority), 9 (except as to the disposition of taxes and 
penalties collected, and except that the returned merchandise 
credit for this tax may not be taken against any State tax, and 
except that the retailer's discount is not allowed for taxes 
paid on aviation fuel that are subject to the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 11, 
12 (except the reference therein to Section 2b of the 
Retailers' Occupation Tax Act), 13 (except that any reference 
to the State shall mean the Authority), 15, 16, 17, 18, 19 and 
20 of the Service Occupation Tax Act and Section 3-7 of the 
Uniform Penalty and Interest Act, as fully as if those 
provisions were set forth herein.
    Persons subject to any tax imposed under the authority 
granted in this subsection may reimburse themselves for their 
serviceman's tax liability by separately stating the tax as an 
additional charge, which charge may be stated in combination, 
in a single amount, with State tax that servicemen are 
authorized to collect under the Service Use Tax Act, in 
accordance with such bracket schedules as the Department may 
prescribe.
    Whenever the Department determines that a refund should be 
made under this subsection to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the warrant to be drawn for the 
amount specified, and to the person named, in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the tax fund referenced under paragraph (g) 
of this Section or the Local Government Aviation Trust Fund, 
as appropriate.
    Nothing in this paragraph shall be construed to authorize 
the Authority to impose a tax upon the privilege of engaging in 
any business which under the Constitution of the United States 
may not be made the subject of taxation by the State.
    (c-5) If, on January 1, 2025, a unit of local government 
has in effect a tax under this Section, or if, after January 1, 
2025, a unit of local government imposes a tax under this 
Section, then that tax applies to leases of tangible personal 
property in effect, entered into, or renewed on or after that 
date in the same manner as the tax under this Section and in 
accordance with the changes made by this amendatory Act of the 
103rd General Assembly. 
    (d) If a tax has been imposed under subsection (b), a use 
tax shall also be imposed at the same rate upon the privilege 
of using, in the metropolitan area, any item of tangible 
personal property that is purchased outside the metropolitan 
area at retail from a retailer, and that is titled or 
registered at a location within the metropolitan area with an 
agency of this State's government. "Selling price" is defined 
as in the Use Tax Act. The tax shall be collected from persons 
whose Illinois address for titling or registration purposes is 
given as being in the metropolitan area. The tax shall be 
collected by the Department of Revenue for the Authority. The 
tax must be paid to the State, or an exemption determination 
must be obtained from the Department of Revenue, before the 
title or certificate of registration for the property may be 
issued. The tax or proof of exemption may be transmitted to the 
Department by way of the State agency with which, or the State 
officer with whom, the tangible personal property must be 
titled or registered if the Department and the State agency or 
State officer determine that this procedure will expedite the 
processing of applications for title or registration.
    The Department has full power to administer and enforce 
this paragraph; to collect all taxes, penalties and interest 
due hereunder; to dispose of taxes, penalties and interest so 
collected in the manner hereinafter provided; and to determine 
all rights to credit memoranda or refunds arising on account 
of the erroneous payment of tax, penalty or interest 
hereunder. In the administration of, and compliance with, this 
subsection, the Department and persons who are subject to this 
paragraph shall (i) have the same rights, remedies, 
privileges, immunities, powers, and duties, (ii) be subject to 
the same conditions, restrictions, limitations, penalties, 
exclusions, exemptions, and definitions of terms, and (iii) 
employ the same modes of procedure as are prescribed in 
Sections 2 (except the definition of "retailer maintaining a 
place of business in this State"), 3, 3-5, 3-10, 3-45, 3-55, 
3-65, 3-70, 3-85, 3a, 4, 6, 7, 8 (except that the jurisdiction 
to which the tax shall be a debt to the extent indicated in 
that Section 8 shall be the Authority), 9 (except provisions 
relating to quarter monthly payments), 10, 11, 12, 12a, 12b, 
13, 14, 15, 19, 20, 21, and 22 of the Use Tax Act and Section 
3-7 of the Uniform Penalty and Interest Act, that are not 
inconsistent with this paragraph, as fully as if those 
provisions were set forth herein.
    Whenever the Department determines that a refund should be 
made under this subsection to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the order to be drawn for the 
amount specified, and to the person named, in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the tax fund referenced under paragraph (g) 
of this Section.
    (e) A certificate of registration issued by the State 
Department of Revenue to a retailer under the Retailers' 
Occupation Tax Act or under the Service Occupation Tax Act 
shall permit the registrant to engage in a business that is 
taxed under the tax imposed under paragraphs (b), (c), or (d) 
of this Section and no additional registration shall be 
required. A certificate issued under the Use Tax Act or the 
Service Use Tax Act shall be applicable with regard to any tax 
imposed under paragraph (c) of this Section.
    (f) The results of any election authorizing a proposition 
to impose a tax under this Section or effecting a change in the 
rate of tax shall be certified by the proper election 
authorities and filed with the Illinois Department on or 
before the first day of April. In addition, an ordinance 
imposing, discontinuing, or effecting a change in the rate of 
tax under this Section shall be adopted and a certified copy 
thereof filed with the Department on or before the first day of 
April. After proper receipt of such certifications, the 
Department shall proceed to administer and enforce this 
Section as of the first day of July next following such 
adoption and filing.
    (g) Except as otherwise provided, the Department of 
Revenue shall, upon collecting any taxes and penalties as 
provided in this Section, pay the taxes and penalties over to 
the State Treasurer as trustee for the Authority. The taxes 
and penalties shall be held in a trust fund outside the State 
Treasury. Taxes and penalties collected on aviation fuel sold 
on or after December 1, 2019 and through December 31, 2020, 
shall be immediately paid over by the Department to the State 
Treasurer, ex officio, as trustee, for deposit into the Local 
Government Aviation Trust Fund. The Department shall only pay 
moneys into the Local Government Aviation Trust Fund under 
this Section for so long as the revenue use requirements of 49 
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
District. On or before the 25th day of each calendar month, the 
Department of Revenue shall prepare and certify to the 
Comptroller of the State of Illinois the amount to be paid to 
the Authority, which shall be the balance in the fund, less any 
amount determined by the Department to be necessary for the 
payment of refunds and not including taxes and penalties 
collected on aviation fuel sold on or after December 1, 2019. 
Within 10 days after receipt by the Comptroller of the 
certification of the amount to be paid to the Authority, the 
Comptroller shall cause an order to be drawn for payment for 
the amount in accordance with the directions contained in the 
certification. Amounts received from the tax imposed under 
this Section shall be used only for the support, construction, 
maintenance, or financing of a facility of the Authority.
    (h) When certifying the amount of a monthly disbursement 
to the Authority under this Section, the Department shall 
increase or decrease the amounts by an amount necessary to 
offset any miscalculation of previous disbursements. The 
offset amount shall be the amount erroneously disbursed within 
the previous 6 months from the time a miscalculation is 
discovered.
    (i) This Section may be cited as the Salem Civic Center Use 
and Occupation Tax Law.
(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 
    Section 75-45. The Flood Prevention District Act is 
amended by changing Section 25 as follows:
 
    (70 ILCS 750/25)
    Sec. 25. Flood prevention retailers' and service 
occupation taxes. 
    (a) If the Board of Commissioners of a flood prevention 
district determines that an emergency situation exists 
regarding levee repair or flood prevention, and upon an 
ordinance confirming the determination adopted by the 
affirmative vote of a majority of the members of the county 
board of the county in which the district is situated, the 
county may impose a flood prevention retailers' occupation tax 
upon all persons engaged in the business of selling tangible 
personal property at retail within the territory of the 
district to provide revenue to pay the costs of providing 
emergency levee repair and flood prevention and to secure the 
payment of bonds, notes, and other evidences of indebtedness 
issued under this Act for a period not to exceed 25 years or as 
required to repay the bonds, notes, and other evidences of 
indebtedness issued under this Act. The tax rate shall be 
0.25% of the gross receipts from all taxable sales made in the 
course of that business. Beginning December 1, 2019 and 
through December 31, 2020, this tax is not imposed on sales of 
aviation fuel unless the tax revenue is expended for 
airport-related purposes. If the District does not have an 
airport-related purpose to which it dedicates aviation fuel 
tax revenue, then aviation fuel is excluded from the tax. The 
County must comply with the certification requirements for 
airport-related purposes under Section 2-22 of the Retailers' 
Occupation Tax Act. The tax imposed under this Section and all 
civil penalties that may be assessed as an incident thereof 
shall be collected and enforced by the State Department of 
Revenue. The Department shall have full power to administer 
and enforce this Section; to collect all taxes and penalties 
so collected in the manner hereinafter provided; and to 
determine all rights to credit memoranda arising on account of 
the erroneous payment of tax or penalty hereunder. 
    For purposes of this Act, "airport-related purposes" has 
the meaning ascribed in Section 6z-20.2 of the State Finance 
Act. Beginning January 1, 2021, this tax is not imposed on 
sales of aviation fuel for so long as the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
binding on the District. 
    In the administration of and compliance with this 
subsection, the Department and persons who are subject to this 
subsection (i) have the same rights, remedies, privileges, 
immunities, powers, and duties, (ii) are subject to the same 
conditions, restrictions, limitations, penalties, and 
definitions of terms, and (iii) shall employ the same modes of 
procedure as are set forth in Sections 1 through 1o, 2 through 
2-70 (in respect to all provisions contained in those Sections 
other than the State rate of tax), 2a through 2h, 3 (except as 
to the disposition of taxes and penalties collected, and 
except that the retailer's discount is not allowed for taxes 
paid on aviation fuel that are subject to the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 
5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5l, 6, 6a, 6b, 6c, 6d, 7, 
8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax 
Act and all provisions of the Uniform Penalty and Interest Act 
as if those provisions were set forth in this subsection.
    Persons subject to any tax imposed under this Section may 
reimburse themselves for their seller's tax liability 
hereunder by separately stating the tax as an additional 
charge, which charge may be stated in combination in a single 
amount with State taxes that sellers are required to collect 
under the Use Tax Act, under any bracket schedules the 
Department may prescribe.
    If a tax is imposed under this subsection (a), a tax shall 
also be imposed under subsection (b) of this Section.
    (b) If a tax has been imposed under subsection (a), a flood 
prevention service occupation tax shall also be imposed upon 
all persons engaged within the territory of the district in 
the business of making sales of service, who, as an incident to 
making the sales of service, transfer tangible personal 
property, either in the form of tangible personal property or 
in the form of real estate as an incident to a sale of service 
to provide revenue to pay the costs of providing emergency 
levee repair and flood prevention and to secure the payment of 
bonds, notes, and other evidences of indebtedness issued under 
this Act for a period not to exceed 25 years or as required to 
repay the bonds, notes, and other evidences of indebtedness. 
The tax rate shall be 0.25% of the selling price of all 
tangible personal property transferred. Beginning December 1, 
2019 and through December 31, 2020, this tax is not imposed on 
sales of aviation fuel unless the tax revenue is expended for 
airport-related purposes. If the District does not have an 
airport-related purpose to which it dedicates aviation fuel 
tax revenue, then aviation fuel is excluded from the tax. The 
County must comply with the certification requirements for 
airport-related purposes under Section 2-22 of the Retailers' 
Occupation Tax Act. For purposes of this Act, "airport-related 
purposes" has the meaning ascribed in Section 6z-20.2 of the 
State Finance Act. Beginning January 1, 2021, this tax is not 
imposed on sales of aviation fuel for so long as the revenue 
use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
binding on the District.
    The tax imposed under this subsection and all civil 
penalties that may be assessed as an incident thereof shall be 
collected and enforced by the State Department of Revenue. The 
Department shall have full power to administer and enforce 
this subsection; to collect all taxes and penalties due 
hereunder; to dispose of taxes and penalties collected in the 
manner hereinafter provided; and to determine all rights to 
credit memoranda arising on account of the erroneous payment 
of tax or penalty hereunder. 
    In the administration of and compliance with this 
subsection, the Department and persons who are subject to this 
subsection shall (i) have the same rights, remedies, 
privileges, immunities, powers, and duties, (ii) be subject to 
the same conditions, restrictions, limitations, penalties, and 
definitions of terms, and (iii) employ the same modes of 
procedure as are set forth in Sections 2 (except that the 
reference to State in the definition of supplier maintaining a 
place of business in this State means the district), 2a 
through 2d, 3 through 3-50 (in respect to all provisions 
contained in those Sections other than the State rate of tax), 
4 (except that the reference to the State shall be to the 
district), 5, 7, 8 (except that the jurisdiction to which the 
tax is a debt to the extent indicated in that Section 8 is the 
district), 9 (except as to the disposition of taxes and 
penalties collected, and except that the retailer's discount 
is not allowed for taxes paid on aviation fuel that are subject 
to the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133), 10, 11, 12 (except the reference therein to 
Section 2b of the Retailers' Occupation Tax Act), 13 (except 
that any reference to the State means the district), Section 
15, 16, 17, 18, 19, and 20 of the Service Occupation Tax Act 
and all provisions of the Uniform Penalty and Interest Act, as 
fully as if those provisions were set forth herein.
    Persons subject to any tax imposed under the authority 
granted in this subsection may reimburse themselves for their 
serviceman's tax liability hereunder by separately stating the 
tax as an additional charge, that charge may be stated in 
combination in a single amount with State tax that servicemen 
are authorized to collect under the Service Use Tax Act, under 
any bracket schedules the Department may prescribe.
    (c) The taxes imposed in subsections (a) and (b) may not be 
imposed on personal property titled or registered with an 
agency of the State or on personal property taxed at the 1% 
rate under the Retailers' Occupation Tax Act and the Service 
Occupation Tax Act (or at the 0% rate imposed under this 
amendatory Act of the 102nd General Assembly).
    (c-5) If, on January 1, 2025, a unit of local government 
has in effect a tax under this Section, or if, after January 1, 
2025, a unit of local government imposes a tax under this 
Section, then that tax applies to leases of tangible personal 
property in effect, entered into, or renewed on or after that 
date in the same manner as the tax under this Section and in 
accordance with the changes made by this amendatory Act of the 
103rd General Assembly. 
    (d) Nothing in this Section shall be construed to 
authorize the district to impose a tax upon the privilege of 
engaging in any business that under the Constitution of the 
United States may not be made the subject of taxation by the 
State.
    (e) The certificate of registration that is issued by the 
Department to a retailer under the Retailers' Occupation Tax 
Act or a serviceman under the Service Occupation Tax Act 
permits the retailer or serviceman to engage in a business 
that is taxable without registering separately with the 
Department under an ordinance or resolution under this 
Section.
    (f) Except as otherwise provided, the Department shall 
immediately pay over to the State Treasurer, ex officio, as 
trustee, all taxes and penalties collected under this Section 
to be deposited into the Flood Prevention Occupation Tax Fund, 
which shall be an unappropriated trust fund held outside the 
State treasury. Taxes and penalties collected on aviation fuel 
sold on or after December 1, 2019 and through December 31, 
2020, shall be immediately paid over by the Department to the 
State Treasurer, ex officio, as trustee, for deposit into the 
Local Government Aviation Trust Fund. The Department shall 
only pay moneys into the Local Government Aviation Trust Fund 
under this Act for so long as the revenue use requirements of 
49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
District.
    On or before the 25th day of each calendar month, the 
Department shall prepare and certify to the Comptroller the 
disbursement of stated sums of money to the counties from 
which retailers or servicemen have paid taxes or penalties to 
the Department during the second preceding calendar month. The 
amount to be paid to each county is equal to the amount (not 
including credit memoranda and not including taxes and 
penalties collected on aviation fuel sold on or after December 
1, 2019 and through December 31, 2020) collected from the 
county under this Section during the second preceding calendar 
month by the Department, (i) less 2% of that amount (except the 
amount collected on aviation fuel sold on or after December 1, 
2019 and through December 31, 2020), which shall be deposited 
into the Tax Compliance and Administration Fund and shall be 
used by the Department in administering and enforcing the 
provisions of this Section on behalf of the county, (ii) plus 
an amount that the Department determines is necessary to 
offset any amounts that were erroneously paid to a different 
taxing body; (iii) less an amount equal to the amount of 
refunds made during the second preceding calendar month by the 
Department on behalf of the county; and (iv) less any amount 
that the Department determines is necessary to offset any 
amounts that were payable to a different taxing body but were 
erroneously paid to the county. When certifying the amount of 
a monthly disbursement to a county under this Section, the 
Department shall increase or decrease the amounts by an amount 
necessary to offset any miscalculation of previous 
disbursements within the previous 6 months from the time a 
miscalculation is discovered.
    Within 10 days after receipt by the Comptroller from the 
Department of the disbursement certification to the counties 
provided for in this Section, the Comptroller shall cause the 
orders to be drawn for the respective amounts in accordance 
with directions contained in the certification.
    If the Department determines that a refund should be made 
under this Section to a claimant instead of issuing a credit 
memorandum, then the Department shall notify the Comptroller, 
who shall cause the order to be drawn for the amount specified 
and to the person named in the notification from the 
Department. The refund shall be paid by the Treasurer out of 
the Flood Prevention Occupation Tax Fund or the Local 
Government Aviation Trust Fund, as appropriate.
    (g) If a county imposes a tax under this Section, then the 
county board shall, by ordinance, discontinue the tax upon the 
payment of all indebtedness of the flood prevention district. 
The tax shall not be discontinued until all indebtedness of 
the District has been paid. 
    (h) Any ordinance imposing the tax under this Section, or 
any ordinance that discontinues the tax, must be certified by 
the county clerk and filed with the Illinois Department of 
Revenue either (i) on or before the first day of April, 
whereupon the Department shall proceed to administer and 
enforce the tax or change in the rate as of the first day of 
July next following the filing; or (ii) on or before the first 
day of October, whereupon the Department shall proceed to 
administer and enforce the tax or change in the rate as of the 
first day of January next following the filing.
    (j) County Flood Prevention Occupation Tax Fund. All 
proceeds received by a county from a tax distribution under 
this Section must be maintained in a special fund known as the 
[name of county] flood prevention occupation tax fund. The 
county shall, at the direction of the flood prevention 
district, use moneys in the fund to pay the costs of providing 
emergency levee repair and flood prevention and to pay bonds, 
notes, and other evidences of indebtedness issued under this 
Act. 
    (k) This Section may be cited as the Flood Prevention 
Occupation Tax Law.
(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19; 
102-700, eff. 4-19-22.)
 
    Section 75-50. The Metro-East Park and Recreation District 
Act is amended by changing Section 30 as follows:
 
    (70 ILCS 1605/30)
    Sec. 30. Taxes. 
    (a) The board shall impose a tax upon all persons engaged 
in the business of selling tangible personal property, other 
than personal property titled or registered with an agency of 
this State's government, at retail in the District on the 
gross receipts from the sales made in the course of business. 
This tax shall be imposed only at the rate of one-tenth of one 
per cent.
    This additional tax may not be imposed on tangible 
personal property taxed at the 1% rate under the Retailers' 
Occupation Tax Act (or at the 0% rate imposed under this 
amendatory Act of the 102nd General Assembly). Beginning 
December 1, 2019 and through December 31, 2020, this tax is not 
imposed on sales of aviation fuel unless the tax revenue is 
expended for airport-related purposes. If the District does 
not have an airport-related purpose to which it dedicates 
aviation fuel tax revenue, then aviation fuel shall be 
excluded from tax. The board must comply with the 
certification requirements for airport-related purposes under 
Section 2-22 of the Retailers' Occupation Tax Act. For 
purposes of this Act, "airport-related purposes" has the 
meaning ascribed in Section 6z-20.2 of the State Finance Act. 
Beginning January 1, 2021, this tax is not imposed on sales of 
aviation fuel for so long as the revenue use requirements of 49 
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
District. The tax imposed by the Board under this Section and 
all civil penalties that may be assessed as an incident of the 
tax shall be collected and enforced by the Department of 
Revenue. The certificate of registration that is issued by the 
Department to a retailer under the Retailers' Occupation Tax 
Act shall permit the retailer to engage in a business that is 
taxable without registering separately with the Department 
under an ordinance or resolution under this Section. The 
Department has full power to administer and enforce this 
Section, to collect all taxes and penalties due under this 
Section, to dispose of taxes and penalties so collected in the 
manner provided in this Section, and to determine all rights 
to credit memoranda arising on account of the erroneous 
payment of a tax or penalty under this Section. In the 
administration of and compliance with this Section, the 
Department and persons who are subject to this Section shall 
(i) have the same rights, remedies, privileges, immunities, 
powers, and duties, (ii) be subject to the same conditions, 
restrictions, limitations, penalties, and definitions of 
terms, and (iii) employ the same modes of procedure as are 
prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 
1n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions 
contained in those Sections other than the State rate of tax), 
2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except provisions 
relating to transaction returns and quarter monthly payments, 
and except that the retailer's discount is not allowed for 
taxes paid on aviation fuel that are subject to the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 
5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 
6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' 
Occupation Tax Act and the Uniform Penalty and Interest Act as 
if those provisions were set forth in this Section.
    Persons subject to any tax imposed under the authority 
granted in this Section may reimburse themselves for their 
sellers' tax liability by separately stating the tax as an 
additional charge, which charge may be stated in combination, 
in a single amount, with State tax which sellers are required 
to collect under the Use Tax Act, pursuant to such bracketed 
schedules as the Department may prescribe.
    Whenever the Department determines that a refund should be 
made under this Section to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the order to be drawn for the 
amount specified and to the person named in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the State Metro-East Park and Recreation 
District Fund or the Local Government Aviation Trust Fund, as 
appropriate.
    (b) If a tax has been imposed under subsection (a), a 
service occupation tax shall also be imposed at the same rate 
upon all persons engaged, in the District, in the business of 
making sales of service, who, as an incident to making those 
sales of service, transfer tangible personal property within 
the District as an incident to a sale of service. This tax may 
not be imposed on tangible personal property taxed at the 1% 
rate under the Service Occupation Tax Act (or at the 0% rate 
imposed under this amendatory Act of the 102nd General 
Assembly). Beginning December 1, 2019 and through December 31, 
2020, this tax may not be imposed on sales of aviation fuel 
unless the tax revenue is expended for airport-related 
purposes. If the District does not have an airport-related 
purpose to which it dedicates aviation fuel tax revenue, then 
aviation fuel shall be excluded from tax. The board must 
comply with the certification requirements for airport-related 
purposes under Section 2-22 of the Retailers' Occupation Tax 
Act. For purposes of this Act, "airport-related purposes" has 
the meaning ascribed in Section 6z-20.2 of the State Finance 
Act. Beginning January 1, 2021, this tax is not imposed on 
sales of aviation fuel for so long as the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
binding on the District. The tax imposed under this subsection 
and all civil penalties that may be assessed as an incident 
thereof shall be collected and enforced by the Department of 
Revenue. The Department has full power to administer and 
enforce this subsection; to collect all taxes and penalties 
due hereunder; to dispose of taxes and penalties so collected 
in the manner hereinafter provided; and to determine all 
rights to credit memoranda arising on account of the erroneous 
payment of tax or penalty hereunder. In the administration of, 
and compliance with this subsection, the Department and 
persons who are subject to this paragraph shall (i) have the 
same rights, remedies, privileges, immunities, powers, and 
duties, (ii) be subject to the same conditions, restrictions, 
limitations, penalties, exclusions, exemptions, and 
definitions of terms, and (iii) employ the same modes of 
procedure as are prescribed in Sections 2 (except that the 
reference to State in the definition of supplier maintaining a 
place of business in this State shall mean the District), 2a, 
2b, 2c, 3 through 3-50 (in respect to all provisions therein 
other than the State rate of tax), 4 (except that the reference 
to the State shall be to the District), 5, 7, 8 (except that 
the jurisdiction to which the tax shall be a debt to the extent 
indicated in that Section 8 shall be the District), 9 (except 
as to the disposition of taxes and penalties collected, and 
except that the retailer's discount is not allowed for taxes 
paid on aviation fuel that are subject to the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 
11, 12 (except the reference therein to Section 2b of the 
Retailers' Occupation Tax Act), 13 (except that any reference 
to the State shall mean the District), Sections 15, 16, 17, 18, 
19 and 20 of the Service Occupation Tax Act and the Uniform 
Penalty and Interest Act, as fully as if those provisions were 
set forth herein.
    Persons subject to any tax imposed under the authority 
granted in this subsection may reimburse themselves for their 
serviceman's tax liability by separately stating the tax as an 
additional charge, which charge may be stated in combination, 
in a single amount, with State tax that servicemen are 
authorized to collect under the Service Use Tax Act, in 
accordance with such bracket schedules as the Department may 
prescribe.
    Whenever the Department determines that a refund should be 
made under this subsection to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the warrant to be drawn for the 
amount specified, and to the person named, in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the State Metro-East Park and Recreation 
District Fund or the Local Government Aviation Trust Fund, as 
appropriate.
    Nothing in this subsection shall be construed to authorize 
the board to impose a tax upon the privilege of engaging in any 
business which under the Constitution of the United States may 
not be made the subject of taxation by the State.
    (b-5) If, on January 1, 2025, a unit of local government 
has in effect a tax under this Section, or if, after January 1, 
2025, a unit of local government imposes a tax under this 
Section, then that tax applies to leases of tangible personal 
property in effect, entered into, or renewed on or after that 
date in the same manner as the tax under this Section and in 
accordance with the changes made by this amendatory Act of the 
103rd General Assembly. 
    (c) Except as otherwise provided in this paragraph, the 
Department shall immediately pay over to the State Treasurer, 
ex officio, as trustee, all taxes and penalties collected 
under this Section to be deposited into the State Metro-East 
Park and Recreation District Fund, which shall be an 
unappropriated trust fund held outside of the State treasury. 
Taxes and penalties collected on aviation fuel sold on or 
after December 1, 2019 and through December 31, 2020, shall be 
immediately paid over by the Department to the State 
Treasurer, ex officio, as trustee, for deposit into the Local 
Government Aviation Trust Fund. The Department shall only pay 
moneys into the Local Government Aviation Trust Fund under 
this Act for so long as the revenue use requirements of 49 
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
District. 
    As soon as possible after the first day of each month, 
beginning January 1, 2011, upon certification of the 
Department of Revenue, the Comptroller shall order 
transferred, and the Treasurer shall transfer, to the STAR 
Bonds Revenue Fund the local sales tax increment, as defined 
in the Innovation Development and Economy Act, collected under 
this Section during the second preceding calendar month for 
sales within a STAR bond district. The Department shall make 
this certification only if the Metro East Park and Recreation 
District imposes a tax on real property as provided in the 
definition of "local sales taxes" under the Innovation 
Development and Economy Act. 
    After the monthly transfer to the STAR Bonds Revenue Fund, 
on or before the 25th day of each calendar month, the 
Department shall prepare and certify to the Comptroller the 
disbursement of stated sums of money pursuant to Section 35 of 
this Act to the District from which retailers have paid taxes 
or penalties to the Department during the second preceding 
calendar month. The amount to be paid to the District shall be 
the amount (not including credit memoranda and not including 
taxes and penalties collected on aviation fuel sold on or 
after December 1, 2019 and through December 31, 2020) 
collected under this Section during the second preceding 
calendar month by the Department plus an amount the Department 
determines is necessary to offset any amounts that were 
erroneously paid to a different taxing body, and not including 
(i) an amount equal to the amount of refunds made during the 
second preceding calendar month by the Department on behalf of 
the District, (ii) any amount that the Department determines 
is necessary to offset any amounts that were payable to a 
different taxing body but were erroneously paid to the 
District, (iii) any amounts that are transferred to the STAR 
Bonds Revenue Fund, and (iv) 1.5% of the remainder, which the 
Department shall transfer into the Tax Compliance and 
Administration Fund. The Department, at the time of each 
monthly disbursement to the District, shall prepare and 
certify to the State Comptroller the amount to be transferred 
into the Tax Compliance and Administration Fund under this 
subsection. Within 10 days after receipt by the Comptroller of 
the disbursement certification to the District and the Tax 
Compliance and Administration Fund provided for in this 
Section to be given to the Comptroller by the Department, the 
Comptroller shall cause the orders to be drawn for the 
respective amounts in accordance with directions contained in 
the certification.
    (d) For the purpose of determining whether a tax 
authorized under this Section is applicable, a retail sale by 
a producer of coal or another mineral mined in Illinois is a 
sale at retail at the place where the coal or other mineral 
mined in Illinois is extracted from the earth. This paragraph 
does not apply to coal or another mineral when it is delivered 
or shipped by the seller to the purchaser at a point outside 
Illinois so that the sale is exempt under the United States 
Constitution as a sale in interstate or foreign commerce.
    (e) Nothing in this Section shall be construed to 
authorize the board to impose a tax upon the privilege of 
engaging in any business that under the Constitution of the 
United States may not be made the subject of taxation by this 
State.
    (f) An ordinance imposing a tax under this Section or an 
ordinance extending the imposition of a tax to an additional 
county or counties shall be certified by the board and filed 
with the Department of Revenue either (i) on or before the 
first day of April, whereupon the Department shall proceed to 
administer and enforce the tax as of the first day of July next 
following the filing; or (ii) on or before the first day of 
October, whereupon the Department shall proceed to administer 
and enforce the tax as of the first day of January next 
following the filing.
    (g) When certifying the amount of a monthly disbursement 
to the District under this Section, the Department shall 
increase or decrease the amounts by an amount necessary to 
offset any misallocation of previous disbursements. The offset 
amount shall be the amount erroneously disbursed within the 
previous 6 months from the time a misallocation is discovered.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
    Section 75-55. The Local Mass Transit District Act is 
amended by changing Section 5.01 as follows:
 
    (70 ILCS 3610/5.01)  (from Ch. 111 2/3, par. 355.01)
    Sec. 5.01. Metro East Mass Transit District; use and 
occupation taxes. 
    (a) The Board of Trustees of any Metro East Mass Transit 
District may, by ordinance adopted with the concurrence of 
two-thirds of the then trustees, impose throughout the 
District any or all of the taxes and fees provided in this 
Section. Except as otherwise provided, all taxes and fees 
imposed under this Section shall be used only for public mass 
transportation systems, and the amount used to provide mass 
transit service to unserved areas of the District shall be in 
the same proportion to the total proceeds as the number of 
persons residing in the unserved areas is to the total 
population of the District. Except as otherwise provided in 
this Act, taxes imposed under this Section and civil penalties 
imposed incident thereto shall be collected and enforced by 
the State Department of Revenue. The Department shall have the 
power to administer and enforce the taxes and to determine all 
rights for refunds for erroneous payments of the taxes.
    (b) The Board may impose a Metro East Mass Transit 
District Retailers' Occupation Tax upon all persons engaged in 
the business of selling tangible personal property at retail 
in the district at a rate of 1/4 of 1%, or as authorized under 
subsection (d-5) of this Section, of the gross receipts from 
the sales made in the course of such business within the 
district, except that the rate of tax imposed under this 
Section on sales of aviation fuel on or after December 1, 2019 
shall be 0.25% in Madison County unless the Metro-East Mass 
Transit District in Madison County has an "airport-related 
purpose" and any additional amount authorized under subsection 
(d-5) is expended for airport-related purposes. If there is no 
airport-related purpose to which aviation fuel tax revenue is 
dedicated, then aviation fuel is excluded from any additional 
amount authorized under subsection (d-5). The rate in St. 
Clair County shall be 0.25% unless the Metro-East Mass Transit 
District in St. Clair County has an "airport-related purpose" 
and the additional 0.50% of the 0.75% tax on aviation fuel 
imposed in that County is expended for airport-related 
purposes. If there is no airport-related purpose to which 
aviation fuel tax revenue is dedicated, then aviation fuel is 
excluded from the additional 0.50% of the 0.75% tax. 
    The Board must comply with the certification requirements 
for airport-related purposes under Section 2-22 of the 
Retailers' Occupation Tax Act. For purposes of this Section, 
"airport-related purposes" has the meaning ascribed in Section 
6z-20.2 of the State Finance Act. This exclusion for aviation 
fuel only applies for so long as the revenue use requirements 
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
District. 
    The tax imposed under this Section and all civil penalties 
that may be assessed as an incident thereof shall be collected 
and enforced by the State Department of Revenue. The 
Department shall have full power to administer and enforce 
this Section; to collect all taxes and penalties so collected 
in the manner hereinafter provided; and to determine all 
rights to credit memoranda arising on account of the erroneous 
payment of tax or penalty hereunder. In the administration of, 
and compliance with, this Section, the Department and persons 
who are subject to this Section shall have the same rights, 
remedies, privileges, immunities, powers and duties, and be 
subject to the same conditions, restrictions, limitations, 
penalties, exclusions, exemptions and definitions of terms and 
employ the same modes of procedure, as are prescribed in 
Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 
(in respect to all provisions therein other than the State 
rate of tax), 2c, 3 (except as to the disposition of taxes and 
penalties collected, and except that the retailer's discount 
is not allowed for taxes paid on aviation fuel that are subject 
to the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 
5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, 13, and 14 of the 
Retailers' Occupation Tax Act and Section 3-7 of the Uniform 
Penalty and Interest Act, as fully as if those provisions were 
set forth herein.
    Persons subject to any tax imposed under the Section may 
reimburse themselves for their seller's tax liability 
hereunder by separately stating the tax as an additional 
charge, which charge may be stated in combination, in a single 
amount, with State taxes that sellers are required to collect 
under the Use Tax Act, in accordance with such bracket 
schedules as the Department may prescribe.
    Whenever the Department determines that a refund should be 
made under this Section to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the warrant to be drawn for the 
amount specified, and to the person named, in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the Metro East Mass Transit District tax fund 
established under paragraph (h) of this Section or the Local 
Government Aviation Trust Fund, as appropriate.
    If a tax is imposed under this subsection (b), a tax shall 
also be imposed under subsections (c) and (d) of this Section.
    For the purpose of determining whether a tax authorized 
under this Section is applicable, a retail sale, by a producer 
of coal or other mineral mined in Illinois, is a sale at retail 
at the place where the coal or other mineral mined in Illinois 
is extracted from the earth. This paragraph does not apply to 
coal or other mineral when it is delivered or shipped by the 
seller to the purchaser at a point outside Illinois so that the 
sale is exempt under the Federal Constitution as a sale in 
interstate or foreign commerce.
    No tax shall be imposed or collected under this subsection 
on the sale of a motor vehicle in this State to a resident of 
another state if that motor vehicle will not be titled in this 
State. 
    Nothing in this Section shall be construed to authorize 
the Metro East Mass Transit District to impose a tax upon the 
privilege of engaging in any business which under the 
Constitution of the United States may not be made the subject 
of taxation by this State.
    (c) If a tax has been imposed under subsection (b), a Metro 
East Mass Transit District Service Occupation Tax shall also 
be imposed upon all persons engaged, in the district, in the 
business of making sales of service, who, as an incident to 
making those sales of service, transfer tangible personal 
property within the District, either in the form of tangible 
personal property or in the form of real estate as an incident 
to a sale of service. The tax rate shall be 1/4%, or as 
authorized under subsection (d-5) of this Section, of the 
selling price of tangible personal property so transferred 
within the district, except that the rate of tax imposed in 
these Counties under this Section on sales of aviation fuel on 
or after December 1, 2019 shall be 0.25% in Madison County 
unless the Metro-East Mass Transit District in Madison County 
has an "airport-related purpose" and any additional amount 
authorized under subsection (d-5) is expended for 
airport-related purposes. If there is no airport-related 
purpose to which aviation fuel tax revenue is dedicated, then 
aviation fuel is excluded from any additional amount 
authorized under subsection (d-5). The rate in St. Clair 
County shall be 0.25% unless the Metro-East Mass Transit 
District in St. Clair County has an "airport-related purpose" 
and the additional 0.50% of the 0.75% tax on aviation fuel is 
expended for airport-related purposes. If there is no 
airport-related purpose to which aviation fuel tax revenue is 
dedicated, then aviation fuel is excluded from the additional 
0.50% of the 0.75% tax. 
    The Board must comply with the certification requirements 
for airport-related purposes under Section 2-22 of the 
Retailers' Occupation Tax Act. For purposes of this Section, 
"airport-related purposes" has the meaning ascribed in Section 
6z-20.2 of the State Finance Act. This exclusion for aviation 
fuel only applies for so long as the revenue use requirements 
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
District. 
    The tax imposed under this paragraph and all civil 
penalties that may be assessed as an incident thereof shall be 
collected and enforced by the State Department of Revenue. The 
Department shall have full power to administer and enforce 
this paragraph; to collect all taxes and penalties due 
hereunder; to dispose of taxes and penalties so collected in 
the manner hereinafter provided; and to determine all rights 
to credit memoranda arising on account of the erroneous 
payment of tax or penalty hereunder. In the administration of, 
and compliance with this paragraph, the Department and persons 
who are subject to this paragraph shall have the same rights, 
remedies, privileges, immunities, powers and duties, and be 
subject to the same conditions, restrictions, limitations, 
penalties, exclusions, exemptions and definitions of terms and 
employ the same modes of procedure as are prescribed in 
Sections 1a-1, 2 (except that the reference to State in the 
definition of supplier maintaining a place of business in this 
State shall mean the Authority), 2a, 3 through 3-50 (in 
respect to all provisions therein other than the State rate of 
tax), 4 (except that the reference to the State shall be to the 
Authority), 5, 7, 8 (except that the jurisdiction to which the 
tax shall be a debt to the extent indicated in that Section 8 
shall be the District), 9 (except as to the disposition of 
taxes and penalties collected, and except that the returned 
merchandise credit for this tax may not be taken against any 
State tax, and except that the retailer's discount is not 
allowed for taxes paid on aviation fuel that are subject to the 
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
47133), 10, 11, 12 (except the reference therein to Section 2b 
of the Retailers' Occupation Tax Act), 13 (except that any 
reference to the State shall mean the District), the first 
paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service 
Occupation Tax Act and Section 3-7 of the Uniform Penalty and 
Interest Act, as fully as if those provisions were set forth 
herein.
    Persons subject to any tax imposed under the authority 
granted in this paragraph may reimburse themselves for their 
serviceman's tax liability hereunder by separately stating the 
tax as an additional charge, which charge may be stated in 
combination, in a single amount, with State tax that 
servicemen are authorized to collect under the Service Use Tax 
Act, in accordance with such bracket schedules as the 
Department may prescribe.
    Whenever the Department determines that a refund should be 
made under this paragraph to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the warrant to be drawn for the 
amount specified, and to the person named, in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the Metro East Mass Transit District tax fund 
established under paragraph (h) of this Section or the Local 
Government Aviation Trust Fund, as appropriate.
    Nothing in this paragraph shall be construed to authorize 
the District to impose a tax upon the privilege of engaging in 
any business which under the Constitution of the United States 
may not be made the subject of taxation by the State.
    (d) If a tax has been imposed under subsection (b), a Metro 
East Mass Transit District Use Tax shall also be imposed upon 
the privilege of using, in the district, any item of tangible 
personal property that is purchased outside the district at 
retail from a retailer, and that is titled or registered with 
an agency of this State's government, at a rate of 1/4%, or as 
authorized under subsection (d-5) of this Section, of the 
selling price of the tangible personal property within the 
District, as "selling price" is defined in the Use Tax Act. The 
tax shall be collected from persons whose Illinois address for 
titling or registration purposes is given as being in the 
District. The tax shall be collected by the Department of 
Revenue for the Metro East Mass Transit District. The tax must 
be paid to the State, or an exemption determination must be 
obtained from the Department of Revenue, before the title or 
certificate of registration for the property may be issued. 
The tax or proof of exemption may be transmitted to the 
Department by way of the State agency with which, or the State 
officer with whom, the tangible personal property must be 
titled or registered if the Department and the State agency or 
State officer determine that this procedure will expedite the 
processing of applications for title or registration.
    The Department shall have full power to administer and 
enforce this paragraph; to collect all taxes, penalties and 
interest due hereunder; to dispose of taxes, penalties and 
interest so collected in the manner hereinafter provided; and 
to determine all rights to credit memoranda or refunds arising 
on account of the erroneous payment of tax, penalty or 
interest hereunder. In the administration of, and compliance 
with, this paragraph, the Department and persons who are 
subject to this paragraph shall have the same rights, 
remedies, privileges, immunities, powers and duties, and be 
subject to the same conditions, restrictions, limitations, 
penalties, exclusions, exemptions and definitions of terms and 
employ the same modes of procedure, as are prescribed in 
Sections 2 (except the definition of "retailer maintaining a 
place of business in this State"), 3 through 3-80 (except 
provisions pertaining to the State rate of tax, and except 
provisions concerning collection or refunding of the tax by 
retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions 
pertaining to claims by retailers and except the last 
paragraph concerning refunds), 20, 21 and 22 of the Use Tax Act 
and Section 3-7 of the Uniform Penalty and Interest Act, that 
are not inconsistent with this paragraph, as fully as if those 
provisions were set forth herein.
    Whenever the Department determines that a refund should be 
made under this paragraph to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the order to be drawn for the 
amount specified, and to the person named, in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the Metro East Mass Transit District tax fund 
established under paragraph (h) of this Section.
    (d-1) If, on January 1, 2025, a unit of local government 
has in effect a tax under subsections (b), (c), and (d) or if, 
after January 1, 2025, a unit of local government imposes a tax 
under subsections (b), (c), and (d), then that tax applies to 
leases of tangible personal property in effect, entered into, 
or renewed on or after that date in the same manner as the tax 
under this Section and in accordance with the changes made by 
this amendatory Act of the 103rd General Assembly. 
    (d-5) (A) The county board of any county participating in 
the Metro East Mass Transit District may authorize, by 
ordinance, a referendum on the question of whether the tax 
rates for the Metro East Mass Transit District Retailers' 
Occupation Tax, the Metro East Mass Transit District Service 
Occupation Tax, and the Metro East Mass Transit District Use 
Tax for the District should be increased from 0.25% to 0.75%. 
Upon adopting the ordinance, the county board shall certify 
the proposition to the proper election officials who shall 
submit the proposition to the voters of the District at the 
next election, in accordance with the general election law.
    The proposition shall be in substantially the following 
form:
        Shall the tax rates for the Metro East Mass Transit 
    District Retailers' Occupation Tax, the Metro East Mass 
    Transit District Service Occupation Tax, and the Metro 
    East Mass Transit District Use Tax be increased from 0.25% 
    to 0.75%?
    (B) Two thousand five hundred electors of any Metro East 
Mass Transit District may petition the Chief Judge of the 
Circuit Court, or any judge of that Circuit designated by the 
Chief Judge, in which that District is located to cause to be 
submitted to a vote of the electors the question whether the 
tax rates for the Metro East Mass Transit District Retailers' 
Occupation Tax, the Metro East Mass Transit District Service 
Occupation Tax, and the Metro East Mass Transit District Use 
Tax for the District should be increased from 0.25% to 0.75%.
    Upon submission of such petition the court shall set a 
date not less than 10 nor more than 30 days thereafter for a 
hearing on the sufficiency thereof. Notice of the filing of 
such petition and of such date shall be given in writing to the 
District and the County Clerk at least 7 days before the date 
of such hearing.
    If such petition is found sufficient, the court shall 
enter an order to submit that proposition at the next 
election, in accordance with general election law.
    The form of the petition shall be in substantially the 
following form: To the Circuit Court of the County of (name of 
county):
        We, the undersigned electors of the (name of transit 
    district), respectfully petition your honor to submit to a 
    vote of the electors of (name of transit district) the 
    following proposition:
        Shall the tax rates for the Metro East Mass Transit 
    District Retailers' Occupation Tax, the Metro East Mass 
    Transit District Service Occupation Tax, and the Metro 
    East Mass Transit District Use Tax be increased from 0.25% 
    to 0.75%?
        Name                Address, with Street and Number.
..............................................................
..............................................................
    (C) The votes shall be recorded as "YES" or "NO". If a 
majority of all votes cast on the proposition are for the 
increase in the tax rates, the Metro East Mass Transit 
District shall begin imposing the increased rates in the 
District, and the Department of Revenue shall begin collecting 
the increased amounts, as provided under this Section. An 
ordinance imposing or discontinuing a tax hereunder or 
effecting a change in the rate thereof shall be adopted and a 
certified copy thereof filed with the Department on or before 
the first day of October, whereupon the Department shall 
proceed to administer and enforce this Section as of the first 
day of January next following the adoption and filing, or on or 
before the first day of April, whereupon the Department shall 
proceed to administer and enforce this Section as of the first 
day of July next following the adoption and filing.
    (D) If the voters have approved a referendum under this 
subsection, before November 1, 1994, to increase the tax rate 
under this subsection, the Metro East Mass Transit District 
Board of Trustees may adopt by a majority vote an ordinance at 
any time before January 1, 1995 that excludes from the rate 
increase tangible personal property that is titled or 
registered with an agency of this State's government. The 
ordinance excluding titled or registered tangible personal 
property from the rate increase must be filed with the 
Department at least 15 days before its effective date. At any 
time after adopting an ordinance excluding from the rate 
increase tangible personal property that is titled or 
registered with an agency of this State's government, the 
Metro East Mass Transit District Board of Trustees may adopt 
an ordinance applying the rate increase to that tangible 
personal property. The ordinance shall be adopted, and a 
certified copy of that ordinance shall be filed with the 
Department, on or before October 1, whereupon the Department 
shall proceed to administer and enforce the rate increase 
against tangible personal property titled or registered with 
an agency of this State's government as of the following 
January 1. After December 31, 1995, any reimposed rate 
increase in effect under this subsection shall no longer apply 
to tangible personal property titled or registered with an 
agency of this State's government. Beginning January 1, 1996, 
the Board of Trustees of any Metro East Mass Transit District 
may never reimpose a previously excluded tax rate increase on 
tangible personal property titled or registered with an agency 
of this State's government. After July 1, 2004, if the voters 
have approved a referendum under this subsection to increase 
the tax rate under this subsection, the Metro East Mass 
Transit District Board of Trustees may adopt by a majority 
vote an ordinance that excludes from the rate increase 
tangible personal property that is titled or registered with 
an agency of this State's government. The ordinance excluding 
titled or registered tangible personal property from the rate 
increase shall be adopted, and a certified copy of that 
ordinance shall be filed with the Department on or before 
October 1, whereupon the Department shall administer and 
enforce this exclusion from the rate increase as of the 
following January 1, or on or before April 1, whereupon the 
Department shall administer and enforce this exclusion from 
the rate increase as of the following July 1. The Board of 
Trustees of any Metro East Mass Transit District may never 
reimpose a previously excluded tax rate increase on tangible 
personal property titled or registered with an agency of this 
State's government.
    (d-6) If the Board of Trustees of any Metro East Mass 
Transit District has imposed a rate increase under subsection 
(d-5) and filed an ordinance with the Department of Revenue 
excluding titled property from the higher rate, then that 
Board may, by ordinance adopted with the concurrence of 
two-thirds of the then trustees, impose throughout the 
District a fee. The fee on the excluded property shall not 
exceed $20 per retail transaction or an amount equal to the 
amount of tax excluded, whichever is less, on tangible 
personal property that is titled or registered with an agency 
of this State's government. Beginning July 1, 2004, the fee 
shall apply only to titled property that is subject to either 
the Metro East Mass Transit District Retailers' Occupation Tax 
or the Metro East Mass Transit District Service Occupation 
Tax. No fee shall be imposed or collected under this 
subsection on the sale of a motor vehicle in this State to a 
resident of another state if that motor vehicle will not be 
titled in this State. 
    (d-7) Until June 30, 2004, if a fee has been imposed under 
subsection (d-6), a fee shall also be imposed upon the 
privilege of using, in the district, any item of tangible 
personal property that is titled or registered with any agency 
of this State's government, in an amount equal to the amount of 
the fee imposed under subsection (d-6). 
    (d-7.1) Beginning July 1, 2004, any fee imposed by the 
Board of Trustees of any Metro East Mass Transit District 
under subsection (d-6) and all civil penalties that may be 
assessed as an incident of the fees shall be collected and 
enforced by the State Department of Revenue. Reference to 
"taxes" in this Section shall be construed to apply to the 
administration, payment, and remittance of all fees under this 
Section. For purposes of any fee imposed under subsection 
(d-6), 4% of the fee, penalty, and interest received by the 
Department in the first 12 months that the fee is collected and 
enforced by the Department and 2% of the fee, penalty, and 
interest following the first 12 months (except the amount 
collected on aviation fuel sold on or after December 1, 2019) 
shall be deposited into the Tax Compliance and Administration 
Fund and shall be used by the Department, subject to 
appropriation, to cover the costs of the Department. No 
retailers' discount shall apply to any fee imposed under 
subsection (d-6).
    (d-8) No item of titled property shall be subject to both 
the higher rate approved by referendum, as authorized under 
subsection (d-5), and any fee imposed under subsection (d-6) 
or (d-7).
    (d-9) (Blank). 
    (d-10) (Blank). 
    (e) A certificate of registration issued by the State 
Department of Revenue to a retailer under the Retailers' 
Occupation Tax Act or under the Service Occupation Tax Act 
shall permit the registrant to engage in a business that is 
taxed under the tax imposed under paragraphs (b), (c) or (d) of 
this Section and no additional registration shall be required 
under the tax. A certificate issued under the Use Tax Act or 
the Service Use Tax Act shall be applicable with regard to any 
tax imposed under paragraph (c) of this Section.
    (f) (Blank). 
    (g) Any ordinance imposing or discontinuing any tax under 
this Section shall be adopted and a certified copy thereof 
filed with the Department on or before June 1, whereupon the 
Department of Revenue shall proceed to administer and enforce 
this Section on behalf of the Metro East Mass Transit District 
as of September 1 next following such adoption and filing. 
Beginning January 1, 1992, an ordinance or resolution imposing 
or discontinuing the tax hereunder shall be adopted and a 
certified copy thereof filed with the Department on or before 
the first day of July, whereupon the Department shall proceed 
to administer and enforce this Section as of the first day of 
October next following such adoption and filing. Beginning 
January 1, 1993, except as provided in subsection (d-5) of 
this Section, an ordinance or resolution imposing or 
discontinuing the tax hereunder shall be adopted and a 
certified copy thereof filed with the Department on or before 
the first day of October, whereupon the Department shall 
proceed to administer and enforce this Section as of the first 
day of January next following such adoption and filing, or, 
beginning January 1, 2004, on or before the first day of April, 
whereupon the Department shall proceed to administer and 
enforce this Section as of the first day of July next following 
the adoption and filing.
    (h) Except as provided in subsection (d-7.1), the State 
Department of Revenue shall, upon collecting any taxes as 
provided in this Section, pay the taxes over to the State 
Treasurer as trustee for the District. The taxes shall be held 
in a trust fund outside the State Treasury. If an 
airport-related purpose has been certified, taxes and 
penalties collected in St. Clair County on aviation fuel sold 
on or after December 1, 2019 from the 0.50% of the 0.75% rate 
shall be immediately paid over by the Department to the State 
Treasurer, ex officio, as trustee, for deposit into the Local 
Government Aviation Trust Fund. The Department shall only pay 
moneys into the Local Government Aviation Trust Fund under 
this Act for so long as the revenue use requirements of 49 
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
District.
    As soon as possible after the first day of each month, 
beginning January 1, 2011, upon certification of the 
Department of Revenue, the Comptroller shall order 
transferred, and the Treasurer shall transfer, to the STAR 
Bonds Revenue Fund the local sales tax increment, as defined 
in the Innovation Development and Economy Act, collected under 
this Section during the second preceding calendar month for 
sales within a STAR bond district. The Department shall make 
this certification only if the local mass transit district 
imposes a tax on real property as provided in the definition of 
"local sales taxes" under the Innovation Development and 
Economy Act.
    After the monthly transfer to the STAR Bonds Revenue Fund, 
on or before the 25th day of each calendar month, the State 
Department of Revenue shall prepare and certify to the 
Comptroller of the State of Illinois the amount to be paid to 
the District, which shall be the amount (not including credit 
memoranda and not including taxes and penalties collected on 
aviation fuel sold on or after December 1, 2019 that are 
deposited into the Local Government Aviation Trust Fund) 
collected under this Section during the second preceding 
calendar month by the Department plus an amount the Department 
determines is necessary to offset any amounts that were 
erroneously paid to a different taxing body, and not including 
any amount equal to the amount of refunds made during the 
second preceding calendar month by the Department on behalf of 
the District, and not including any amount that the Department 
determines is necessary to offset any amounts that were 
payable to a different taxing body but were erroneously paid 
to the District, and less any amounts that are transferred to 
the STAR Bonds Revenue Fund, less 1.5% of the remainder, which 
the Department shall transfer into the Tax Compliance and 
Administration Fund. The Department, at the time of each 
monthly disbursement to the District, shall prepare and 
certify to the State Comptroller the amount to be transferred 
into the Tax Compliance and Administration Fund under this 
subsection. Within 10 days after receipt by the Comptroller of 
the certification of the amount to be paid to the District and 
the Tax Compliance and Administration Fund, the Comptroller 
shall cause an order to be drawn for payment for the amount in 
accordance with the direction in the certification.
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 
101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 
    Section 75-60. The Regional Transportation Authority Act 
is amended by changing Section 4.03 as follows:
 
    (70 ILCS 3615/4.03)  (from Ch. 111 2/3, par. 704.03)
    Sec. 4.03. Taxes. 
    (a) In order to carry out any of the powers or purposes of 
the Authority, the Board may by ordinance adopted with the 
concurrence of 12 of the then Directors, impose throughout the 
metropolitan region any or all of the taxes provided in this 
Section. Except as otherwise provided in this Act, taxes 
imposed under this Section and civil penalties imposed 
incident thereto shall be collected and enforced by the State 
Department of Revenue. The Department shall have the power to 
administer and enforce the taxes and to determine all rights 
for refunds for erroneous payments of the taxes. Nothing in 
Public Act 95-708 is intended to invalidate any taxes 
currently imposed by the Authority. The increased vote 
requirements to impose a tax shall only apply to actions taken 
after January 1, 2008 (the effective date of Public Act 
95-708). 
    (b) The Board may impose a public transportation tax upon 
all persons engaged in the metropolitan region in the business 
of selling at retail motor fuel for operation of motor 
vehicles upon public highways. The tax shall be at a rate not 
to exceed 5% of the gross receipts from the sales of motor fuel 
in the course of the business. As used in this Act, the term 
"motor fuel" shall have the same meaning as in the Motor Fuel 
Tax Law. The Board may provide for details of the tax. The 
provisions of any tax shall conform, as closely as may be 
practicable, to the provisions of the Municipal Retailers 
Occupation Tax Act, including without limitation, conformity 
to penalties with respect to the tax imposed and as to the 
powers of the State Department of Revenue to promulgate and 
enforce rules and regulations relating to the administration 
and enforcement of the provisions of the tax imposed, except 
that reference in the Act to any municipality shall refer to 
the Authority and the tax shall be imposed only with regard to 
receipts from sales of motor fuel in the metropolitan region, 
at rates as limited by this Section.
    (c) In connection with the tax imposed under paragraph (b) 
of this Section, the Board may impose a tax upon the privilege 
of using in the metropolitan region motor fuel for the 
operation of a motor vehicle upon public highways, the tax to 
be at a rate not in excess of the rate of tax imposed under 
paragraph (b) of this Section. The Board may provide for 
details of the tax.
    (d) The Board may impose a motor vehicle parking tax upon 
the privilege of parking motor vehicles at off-street parking 
facilities in the metropolitan region at which a fee is 
charged, and may provide for reasonable classifications in and 
exemptions to the tax, for administration and enforcement 
thereof and for civil penalties and refunds thereunder and may 
provide criminal penalties thereunder, the maximum penalties 
not to exceed the maximum criminal penalties provided in the 
Retailers' Occupation Tax Act. The Authority may collect and 
enforce the tax itself or by contract with any unit of local 
government. The State Department of Revenue shall have no 
responsibility for the collection and enforcement unless the 
Department agrees with the Authority to undertake the 
collection and enforcement. As used in this paragraph, the 
term "parking facility" means a parking area or structure 
having parking spaces for more than 2 vehicles at which motor 
vehicles are permitted to park in return for an hourly, daily, 
or other periodic fee, whether publicly or privately owned, 
but does not include parking spaces on a public street, the use 
of which is regulated by parking meters.
    (e) The Board may impose a Regional Transportation 
Authority Retailers' Occupation Tax upon all persons engaged 
in the business of selling tangible personal property at 
retail in the metropolitan region. In Cook County, the tax 
rate shall be 1.25% of the gross receipts from sales of 
tangible personal property taxed at the 1% rate under the 
Retailers' Occupation Tax Act (or at the 0% rate imposed under 
this amendatory Act of the 102nd General Assembly), and 1% of 
the gross receipts from other taxable sales made in the course 
of that business. In DuPage, Kane, Lake, McHenry, and Will 
counties, the tax rate shall be 0.75% of the gross receipts 
from all taxable sales made in the course of that business. The 
rate of tax imposed in DuPage, Kane, Lake, McHenry, and Will 
counties under this Section on sales of aviation fuel on or 
after December 1, 2019 shall, however, be 0.25% unless the 
Regional Transportation Authority in DuPage, Kane, Lake, 
McHenry, and Will counties has an "airport-related purpose" 
and the additional 0.50% of the 0.75% tax on aviation fuel is 
expended for airport-related purposes. If there is no 
airport-related purpose to which aviation fuel tax revenue is 
dedicated, then aviation fuel is excluded from the additional 
0.50% of the 0.75% tax. The tax imposed under this Section and 
all civil penalties that may be assessed as an incident 
thereof shall be collected and enforced by the State 
Department of Revenue. The Department shall have full power to 
administer and enforce this Section; to collect all taxes and 
penalties so collected in the manner hereinafter provided; and 
to determine all rights to credit memoranda arising on account 
of the erroneous payment of tax or penalty hereunder. In the 
administration of, and compliance with this Section, the 
Department and persons who are subject to this Section shall 
have the same rights, remedies, privileges, immunities, 
powers, and duties, and be subject to the same conditions, 
restrictions, limitations, penalties, exclusions, exemptions, 
and definitions of terms, and employ the same modes of 
procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d, 
1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions 
therein other than the State rate of tax), 2c, 3 (except as to 
the disposition of taxes and penalties collected, and except 
that the retailer's discount is not allowed for taxes paid on 
aviation fuel that are subject to the revenue use requirements 
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 
5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 
10, 11, 12, and 13 of the Retailers' Occupation Tax Act and 
Section 3-7 of the Uniform Penalty and Interest Act, as fully 
as if those provisions were set forth herein.
    The Board and DuPage, Kane, Lake, McHenry, and Will 
counties must comply with the certification requirements for 
airport-related purposes under Section 2-22 of the Retailers' 
Occupation Tax Act. For purposes of this Section, 
"airport-related purposes" has the meaning ascribed in Section 
6z-20.2 of the State Finance Act. This exclusion for aviation 
fuel only applies for so long as the revenue use requirements 
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
Authority. 
    Persons subject to any tax imposed under the authority 
granted in this Section may reimburse themselves for their 
seller's tax liability hereunder by separately stating the tax 
as an additional charge, which charge may be stated in 
combination in a single amount with State taxes that sellers 
are required to collect under the Use Tax Act, under any 
bracket schedules the Department may prescribe.
    Whenever the Department determines that a refund should be 
made under this Section to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the warrant to be drawn for the 
amount specified, and to the person named, in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the Regional Transportation Authority tax 
fund established under paragraph (n) of this Section or the 
Local Government Aviation Trust Fund, as appropriate.
    If a tax is imposed under this subsection (e), a tax shall 
also be imposed under subsections (f) and (g) of this Section.
    For the purpose of determining whether a tax authorized 
under this Section is applicable, a retail sale by a producer 
of coal or other mineral mined in Illinois, is a sale at retail 
at the place where the coal or other mineral mined in Illinois 
is extracted from the earth. This paragraph does not apply to 
coal or other mineral when it is delivered or shipped by the 
seller to the purchaser at a point outside Illinois so that the 
sale is exempt under the Federal Constitution as a sale in 
interstate or foreign commerce.
    No tax shall be imposed or collected under this subsection 
on the sale of a motor vehicle in this State to a resident of 
another state if that motor vehicle will not be titled in this 
State. 
    Nothing in this Section shall be construed to authorize 
the Regional Transportation Authority to impose a tax upon the 
privilege of engaging in any business that under the 
Constitution of the United States may not be made the subject 
of taxation by this State.
    (f) If a tax has been imposed under paragraph (e), a 
Regional Transportation Authority Service Occupation Tax shall 
also be imposed upon all persons engaged, in the metropolitan 
region in the business of making sales of service, who as an 
incident to making the sales of service, transfer tangible 
personal property within the metropolitan region, either in 
the form of tangible personal property or in the form of real 
estate as an incident to a sale of service. In Cook County, the 
tax rate shall be: (1) 1.25% of the serviceman's cost price of 
food prepared for immediate consumption and transferred 
incident to a sale of service subject to the service 
occupation tax by an entity licensed under the Hospital 
Licensing Act, the Nursing Home Care Act, the Specialized 
Mental Health Rehabilitation Act of 2013, the ID/DD Community 
Care Act, or the MC/DD Act that is located in the metropolitan 
region; (2) 1.25% of the selling price of tangible personal 
property taxed at the 1% rate under the Service Occupation Tax 
Act (or at the 0% rate imposed under this amendatory Act of the 
102nd General Assembly); and (3) 1% of the selling price from 
other taxable sales of tangible personal property transferred. 
In DuPage, Kane, Lake, McHenry, and Will counties, the rate 
shall be 0.75% of the selling price of all tangible personal 
property transferred. The rate of tax imposed in DuPage, Kane, 
Lake, McHenry, and Will counties under this Section on sales 
of aviation fuel on or after December 1, 2019 shall, however, 
be 0.25% unless the Regional Transportation Authority in 
DuPage, Kane, Lake, McHenry, and Will counties has an 
"airport-related purpose" and the additional 0.50% of the 
0.75% tax on aviation fuel is expended for airport-related 
purposes. If there is no airport-related purpose to which 
aviation fuel tax revenue is dedicated, then aviation fuel is 
excluded from the additional 0.5% of the 0.75% tax.
    The Board and DuPage, Kane, Lake, McHenry, and Will 
counties must comply with the certification requirements for 
airport-related purposes under Section 2-22 of the Retailers' 
Occupation Tax Act. For purposes of this Section, 
"airport-related purposes" has the meaning ascribed in Section 
6z-20.2 of the State Finance Act. This exclusion for aviation 
fuel only applies for so long as the revenue use requirements 
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
Authority. 
    The tax imposed under this paragraph and all civil 
penalties that may be assessed as an incident thereof shall be 
collected and enforced by the State Department of Revenue. The 
Department shall have full power to administer and enforce 
this paragraph; to collect all taxes and penalties due 
hereunder; to dispose of taxes and penalties collected in the 
manner hereinafter provided; and to determine all rights to 
credit memoranda arising on account of the erroneous payment 
of tax or penalty hereunder. In the administration of and 
compliance with this paragraph, the Department and persons who 
are subject to this paragraph shall have the same rights, 
remedies, privileges, immunities, powers, and duties, and be 
subject to the same conditions, restrictions, limitations, 
penalties, exclusions, exemptions, and definitions of terms, 
and employ the same modes of procedure, as are prescribed in 
Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all 
provisions therein other than the State rate of tax), 4 
(except that the reference to the State shall be to the 
Authority), 5, 7, 8 (except that the jurisdiction to which the 
tax shall be a debt to the extent indicated in that Section 8 
shall be the Authority), 9 (except as to the disposition of 
taxes and penalties collected, and except that the returned 
merchandise credit for this tax may not be taken against any 
State tax, and except that the retailer's discount is not 
allowed for taxes paid on aviation fuel that are subject to the 
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
47133), 10, 11, 12 (except the reference therein to Section 2b 
of the Retailers' Occupation Tax Act), 13 (except that any 
reference to the State shall mean the Authority), the first 
paragraph of Section 15, 16, 17, 18, 19, and 20 of the Service 
Occupation Tax Act and Section 3-7 of the Uniform Penalty and 
Interest Act, as fully as if those provisions were set forth 
herein.
    Persons subject to any tax imposed under the authority 
granted in this paragraph may reimburse themselves for their 
serviceman's tax liability hereunder by separately stating the 
tax as an additional charge, that charge may be stated in 
combination in a single amount with State tax that servicemen 
are authorized to collect under the Service Use Tax Act, under 
any bracket schedules the Department may prescribe.
    Whenever the Department determines that a refund should be 
made under this paragraph to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the warrant to be drawn for the 
amount specified, and to the person named in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the Regional Transportation Authority tax 
fund established under paragraph (n) of this Section or the 
Local Government Aviation Trust Fund, as appropriate.
    Nothing in this paragraph shall be construed to authorize 
the Authority to impose a tax upon the privilege of engaging in 
any business that under the Constitution of the United States 
may not be made the subject of taxation by the State.
    (g) If a tax has been imposed under paragraph (e), a tax 
shall also be imposed upon the privilege of using in the 
metropolitan region, any item of tangible personal property 
that is purchased outside the metropolitan region at retail 
from a retailer, and that is titled or registered with an 
agency of this State's government. In Cook County, the tax 
rate shall be 1% of the selling price of the tangible personal 
property, as "selling price" is defined in the Use Tax Act. In 
DuPage, Kane, Lake, McHenry, and Will counties, the tax rate 
shall be 0.75% of the selling price of the tangible personal 
property, as "selling price" is defined in the Use Tax Act. The 
tax shall be collected from persons whose Illinois address for 
titling or registration purposes is given as being in the 
metropolitan region. The tax shall be collected by the 
Department of Revenue for the Regional Transportation 
Authority. The tax must be paid to the State, or an exemption 
determination must be obtained from the Department of Revenue, 
before the title or certificate of registration for the 
property may be issued. The tax or proof of exemption may be 
transmitted to the Department by way of the State agency with 
which, or the State officer with whom, the tangible personal 
property must be titled or registered if the Department and 
the State agency or State officer determine that this 
procedure will expedite the processing of applications for 
title or registration.
    The Department shall have full power to administer and 
enforce this paragraph; to collect all taxes, penalties, and 
interest due hereunder; to dispose of taxes, penalties, and 
interest collected in the manner hereinafter provided; and to 
determine all rights to credit memoranda or refunds arising on 
account of the erroneous payment of tax, penalty, or interest 
hereunder. In the administration of and compliance with this 
paragraph, the Department and persons who are subject to this 
paragraph shall have the same rights, remedies, privileges, 
immunities, powers, and duties, and be subject to the same 
conditions, restrictions, limitations, penalties, exclusions, 
exemptions, and definitions of terms and employ the same modes 
of procedure, as are prescribed in Sections 2 (except the 
definition of "retailer maintaining a place of business in 
this State"), 3 through 3-80 (except provisions pertaining to 
the State rate of tax, and except provisions concerning 
collection or refunding of the tax by retailers), 4, 11, 12, 
12a, 14, 15, 19 (except the portions pertaining to claims by 
retailers and except the last paragraph concerning refunds), 
20, 21, and 22 of the Use Tax Act, and are not inconsistent 
with this paragraph, as fully as if those provisions were set 
forth herein.
    Whenever the Department determines that a refund should be 
made under this paragraph to a claimant instead of issuing a 
credit memorandum, the Department shall notify the State 
Comptroller, who shall cause the order to be drawn for the 
amount specified, and to the person named in the notification 
from the Department. The refund shall be paid by the State 
Treasurer out of the Regional Transportation Authority tax 
fund established under paragraph (n) of this Section.
    (g-5) If, on January 1, 2025, a unit of local government 
has in effect a tax under subsections (e), (f), and (g), or if, 
after January 1, 2025, a unit of local government imposes a tax 
under subsections (e), (f), and (g), then that tax applies to 
leases of tangible personal property in effect, entered into, 
or renewed on or after that date in the same manner as the tax 
under this Section and in accordance with the changes made by 
this amendatory Act of the 103rd General Assembly. 
    (h) The Authority may impose a replacement vehicle tax of 
$50 on any passenger car as defined in Section 1-157 of the 
Illinois Vehicle Code purchased within the metropolitan region 
by or on behalf of an insurance company to replace a passenger 
car of an insured person in settlement of a total loss claim. 
The tax imposed may not become effective before the first day 
of the month following the passage of the ordinance imposing 
the tax and receipt of a certified copy of the ordinance by the 
Department of Revenue. The Department of Revenue shall collect 
the tax for the Authority in accordance with Sections 3-2002 
and 3-2003 of the Illinois Vehicle Code.
    The Department shall immediately pay over to the State 
Treasurer, ex officio, as trustee, all taxes collected 
hereunder.
    As soon as possible after the first day of each month, 
beginning January 1, 2011, upon certification of the 
Department of Revenue, the Comptroller shall order 
transferred, and the Treasurer shall transfer, to the STAR 
Bonds Revenue Fund the local sales tax increment, as defined 
in the Innovation Development and Economy Act, collected under 
this Section during the second preceding calendar month for 
sales within a STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund, 
on or before the 25th day of each calendar month, the 
Department shall prepare and certify to the Comptroller the 
disbursement of stated sums of money to the Authority. The 
amount to be paid to the Authority shall be the amount 
collected hereunder during the second preceding calendar month 
by the Department, less any amount determined by the 
Department to be necessary for the payment of refunds, and 
less any amounts that are transferred to the STAR Bonds 
Revenue Fund. Within 10 days after receipt by the Comptroller 
of the disbursement certification to the Authority provided 
for in this Section to be given to the Comptroller by the 
Department, the Comptroller shall cause the orders to be drawn 
for that amount in accordance with the directions contained in 
the certification.
    (i) The Board may not impose any other taxes except as it 
may from time to time be authorized by law to impose.
    (j) A certificate of registration issued by the State 
Department of Revenue to a retailer under the Retailers' 
Occupation Tax Act or under the Service Occupation Tax Act 
shall permit the registrant to engage in a business that is 
taxed under the tax imposed under paragraphs (b), (e), (f) or 
(g) of this Section and no additional registration shall be 
required under the tax. A certificate issued under the Use Tax 
Act or the Service Use Tax Act shall be applicable with regard 
to any tax imposed under paragraph (c) of this Section.
    (k) The provisions of any tax imposed under paragraph (c) 
of this Section shall conform as closely as may be practicable 
to the provisions of the Use Tax Act, including without 
limitation conformity as to penalties with respect to the tax 
imposed and as to the powers of the State Department of Revenue 
to promulgate and enforce rules and regulations relating to 
the administration and enforcement of the provisions of the 
tax imposed. The taxes shall be imposed only on use within the 
metropolitan region and at rates as provided in the paragraph.
    (l) The Board in imposing any tax as provided in 
paragraphs (b) and (c) of this Section, shall, after seeking 
the advice of the State Department of Revenue, provide means 
for retailers, users or purchasers of motor fuel for purposes 
other than those with regard to which the taxes may be imposed 
as provided in those paragraphs to receive refunds of taxes 
improperly paid, which provisions may be at variance with the 
refund provisions as applicable under the Municipal Retailers 
Occupation Tax Act. The State Department of Revenue may 
provide for certificates of registration for users or 
purchasers of motor fuel for purposes other than those with 
regard to which taxes may be imposed as provided in paragraphs 
(b) and (c) of this Section to facilitate the reporting and 
nontaxability of the exempt sales or uses.
    (m) Any ordinance imposing or discontinuing any tax under 
this Section shall be adopted and a certified copy thereof 
filed with the Department on or before June 1, whereupon the 
Department of Revenue shall proceed to administer and enforce 
this Section on behalf of the Regional Transportation 
Authority as of September 1 next following such adoption and 
filing. Beginning January 1, 1992, an ordinance or resolution 
imposing or discontinuing the tax hereunder shall be adopted 
and a certified copy thereof filed with the Department on or 
before the first day of July, whereupon the Department shall 
proceed to administer and enforce this Section as of the first 
day of October next following such adoption and filing. 
Beginning January 1, 1993, an ordinance or resolution 
imposing, increasing, decreasing, or discontinuing the tax 
hereunder shall be adopted and a certified copy thereof filed 
with the Department, whereupon the Department shall proceed to 
administer and enforce this Section as of the first day of the 
first month to occur not less than 60 days following such 
adoption and filing. Any ordinance or resolution of the 
Authority imposing a tax under this Section and in effect on 
August 1, 2007 shall remain in full force and effect and shall 
be administered by the Department of Revenue under the terms 
and conditions and rates of tax established by such ordinance 
or resolution until the Department begins administering and 
enforcing an increased tax under this Section as authorized by 
Public Act 95-708. The tax rates authorized by Public Act 
95-708 are effective only if imposed by ordinance of the 
Authority. 
    (n) Except as otherwise provided in this subsection (n), 
the State Department of Revenue shall, upon collecting any 
taxes as provided in this Section, pay the taxes over to the 
State Treasurer as trustee for the Authority. The taxes shall 
be held in a trust fund outside the State Treasury. If an 
airport-related purpose has been certified, taxes and 
penalties collected in DuPage, Kane, Lake, McHenry and Will 
counties on aviation fuel sold on or after December 1, 2019 
from the 0.50% of the 0.75% rate shall be immediately paid over 
by the Department to the State Treasurer, ex officio, as 
trustee, for deposit into the Local Government Aviation Trust 
Fund. The Department shall only pay moneys into the Local 
Government Aviation Trust Fund under this Act for so long as 
the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133 are binding on the Authority. On or before the 
25th day of each calendar month, the State Department of 
Revenue shall prepare and certify to the Comptroller of the 
State of Illinois and to the Authority (i) the amount of taxes 
collected in each county other than Cook County in the 
metropolitan region, (not including, if an airport-related 
purpose has been certified, the taxes and penalties collected 
from the 0.50% of the 0.75% rate on aviation fuel sold on or 
after December 1, 2019 that are deposited into the Local 
Government Aviation Trust Fund) (ii) the amount of taxes 
collected within the City of Chicago, and (iii) the amount 
collected in that portion of Cook County outside of Chicago, 
each amount less the amount necessary for the payment of 
refunds to taxpayers located in those areas described in items 
(i), (ii), and (iii), and less 1.5% of the remainder, which 
shall be transferred from the trust fund into the Tax 
Compliance and Administration Fund. The Department, at the 
time of each monthly disbursement to the Authority, shall 
prepare and certify to the State Comptroller the amount to be 
transferred into the Tax Compliance and Administration Fund 
under this subsection. Within 10 days after receipt by the 
Comptroller of the certification of the amounts, the 
Comptroller shall cause an order to be drawn for the transfer 
of the amount certified into the Tax Compliance and 
Administration Fund and the payment of two-thirds of the 
amounts certified in item (i) of this subsection to the 
Authority and one-third of the amounts certified in item (i) 
of this subsection to the respective counties other than Cook 
County and the amount certified in items (ii) and (iii) of this 
subsection to the Authority.
    In addition to the disbursement required by the preceding 
paragraph, an allocation shall be made in July 1991 and each 
year thereafter to the Regional Transportation Authority. The 
allocation shall be made in an amount equal to the average 
monthly distribution during the preceding calendar year 
(excluding the 2 months of lowest receipts) and the allocation 
shall include the amount of average monthly distribution from 
the Regional Transportation Authority Occupation and Use Tax 
Replacement Fund. The distribution made in July 1992 and each 
year thereafter under this paragraph and the preceding 
paragraph shall be reduced by the amount allocated and 
disbursed under this paragraph in the preceding calendar year. 
The Department of Revenue shall prepare and certify to the 
Comptroller for disbursement the allocations made in 
accordance with this paragraph.
    (o) Failure to adopt a budget ordinance or otherwise to 
comply with Section 4.01 of this Act or to adopt a Five-year 
Capital Program or otherwise to comply with paragraph (b) of 
Section 2.01 of this Act shall not affect the validity of any 
tax imposed by the Authority otherwise in conformity with law.
    (p) At no time shall a public transportation tax or motor 
vehicle parking tax authorized under paragraphs (b), (c), and 
(d) of this Section be in effect at the same time as any 
retailers' occupation, use or service occupation tax 
authorized under paragraphs (e), (f), and (g) of this Section 
is in effect.
    Any taxes imposed under the authority provided in 
paragraphs (b), (c), and (d) shall remain in effect only until 
the time as any tax authorized by paragraph (e), (f), or (g) of 
this Section are imposed and becomes effective. Once any tax 
authorized by paragraph (e), (f), or (g) is imposed the Board 
may not reimpose taxes as authorized in paragraphs (b), (c), 
and (d) of the Section unless any tax authorized by paragraph 
(e), (f), or (g) of this Section becomes ineffective by means 
other than an ordinance of the Board.
    (q) Any existing rights, remedies and obligations 
(including enforcement by the Regional Transportation 
Authority) arising under any tax imposed under paragraph (b), 
(c), or (d) of this Section shall not be affected by the 
imposition of a tax under paragraph (e), (f), or (g) of this 
Section.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
ARTICLE 80. 

 
    Section 80-5. The Cigarette Tax Act is amended by changing 
Sections 4b, 9, 9e, and 9f as follows:
 
    (35 ILCS 130/4b)  (from Ch. 120, par. 453.4b)
    Sec. 4b. (a) The Department may, in its discretion, upon 
application, issue permits authorizing the payment of the tax 
herein imposed by out-of-State cigarette manufacturers who are 
not required to be licensed as distributors of cigarettes in 
this State, but who elect to qualify under this Act as 
distributors of cigarettes in this State, and who, to the 
satisfaction of the Department, furnish adequate security to 
insure payment of the tax, provided that any such permit shall 
extend only to cigarettes which such permittee manufacturer 
places in original packages that are contained inside a sealed 
transparent wrapper. Such permits shall be issued without 
charge in such form as the Department may prescribe and shall 
not be transferable or assignable.
    The following are ineligible to receive a distributor's 
permit under this subsection:
        (1) a person who is not of good character and 
    reputation in the community in which he resides; the 
    Department may consider past conviction of a felony but 
    the conviction shall not operate as an absolute bar to 
    receiving a permit; 
        (2) a person who has been convicted of a felony under 
    any Federal or State law, if the Department, after 
    investigation and a hearing and consideration of 
    mitigating factors and evidence of rehabilitation 
    contained in the applicant's record, including those in 
    Section 4i of this Act, determines that such person has 
    not been sufficiently rehabilitated to warrant the public 
    trust and the conviction will impair the ability of the 
    person to engage in the position for which a permit is 
    sought;
        (3) a corporation, if any officer, manager or director 
    thereof, or any stockholder or stockholders owning in the 
    aggregate more than 5% of the stock of such corporation, 
    would not be eligible to receive a permit under this Act 
    for any reason.
    With respect to cigarettes which come within the scope of 
such a permit and which any such permittee delivers or causes 
to be delivered in Illinois to licensed distributors, such 
permittee shall remit the tax imposed by this Act at the times 
provided for in Section 3 of this Act. Each such remittance 
shall be accompanied by a return filed with the Department on a 
form to be prescribed and furnished by the Department and 
shall disclose such information as the Department may lawfully 
require. Information that the Department may lawfully require 
includes information related to the uniform regulation and 
taxation of cigarettes. The Department may promulgate rules to 
require that the permittee's return be accompanied by 
appropriate computer-generated magnetic media supporting 
schedule data in the format prescribed by the Department, 
unless, as provided by rule, the Department grants an 
exception upon petition of the permittee. Each such return 
shall be accompanied by a copy of each invoice rendered by the 
permittee to any licensed distributor to whom the permittee 
delivered cigarettes of the type covered by the permit (or 
caused cigarettes of the type covered by the permit to be 
delivered) in Illinois during the period covered by such 
return.
    Such permit may be suspended, canceled or revoked when, at 
any time, the Department considers that the security given is 
inadequate, or that such tax can more effectively be collected 
from distributors located in this State, or whenever the 
permittee violates any provision of this Act or any lawful 
rule or regulation issued by the Department pursuant to this 
Act or is determined to be ineligible for a distributor's 
permit under this Act as provided in this Section, whenever 
the permittee shall notify the Department in writing of his 
desire to have the permit canceled. The Department shall have 
the power, in its discretion, to issue a new permit after such 
suspension, cancellation or revocation, except when the person 
who would receive the permit is ineligible to receive a 
distributor's permit under this Act.
    All permits issued by the Department under this Act shall 
be valid for not to exceed one year after issuance unless 
sooner revoked, canceled or suspended as in this Act provided. 
    (b) Out-of-state cigarette manufacturers who are not 
required to be licensed as distributors of cigarettes in this 
State and who do not elect to obtain approval under subsection 
4b(a) to pay the tax imposed by this Act, but who elect to 
qualify under this Act as distributors of cigarettes in this 
State for purposes of shipping and delivering unstamped 
original packages of cigarettes into this State to licensed 
distributors, shall obtain a permit from the Department. These 
permits shall be issued without charge in such form as the 
Department may prescribe and shall not be transferable or 
assignable. 
    The following are ineligible to receive a distributor's 
permit under this subsection: 
        (1) a person who is not of good character and 
    reputation in the community in which he or she resides; 
    the Department may consider past conviction of a felony 
    but the conviction shall not operate as an absolute bar to 
    receiving a permit; 
        (2) a person who has been convicted of a felony under 
    any federal or State law, if the Department, after 
    investigation and a hearing and consideration of 
    mitigating factors and evidence of rehabilitation 
    contained in the applicant's record, including those set 
    forth in Section 4i of this Act, determines that the 
    person has not been sufficiently rehabilitated to warrant 
    the public trust and the conviction will impair the 
    ability of the person to engage in the position for which a 
    permit is sought; and 
        (3) a corporation, if any officer, manager, or 
    director thereof, or any stockholder or stockholders 
    owning in the aggregate more than 5% of the stock of the 
    corporation, would not be eligible to receive a permit 
    under this Act for any reason. 
    With respect to original packages of cigarettes that such 
permittee delivers or causes to be delivered in Illinois and 
distributes to the public for promotional purposes without 
consideration, the permittee shall pay the tax imposed by this 
Act by remitting the amount thereof to the Department by the 
5th day of each month covering cigarettes shipped or otherwise 
delivered in Illinois for those purposes during the preceding 
calendar month. The permittee, before delivering those 
cigarettes or causing those cigarettes to be delivered in this 
State, shall evidence his or her obligation to remit the taxes 
due with respect to those cigarettes by imprinting language to 
be prescribed by the Department on each original package of 
cigarettes, in such place thereon and in such manner also to be 
prescribed by the Department. The imprinted language shall 
acknowledge the permittee's payment of or liability for the 
tax imposed by this Act with respect to the distribution of 
those cigarettes. 
    With respect to cigarettes that the permittee delivers or 
causes to be delivered in Illinois to Illinois licensed 
distributors or distributed to the public for promotional 
purposes, the permittee shall, by the 5th day of each month, 
file with the Department, a report covering cigarettes shipped 
or otherwise delivered in Illinois to licensed distributors or 
distributed to the public for promotional purposes during the 
preceding calendar month on a form to be prescribed and 
furnished by the Department and shall disclose such other 
information as the Department may lawfully require. 
Information that the Department may lawfully require includes 
information related to the uniform regulation and taxation of 
cigarettes. The Department may promulgate rules to require 
that the permittee's report be accompanied by appropriate 
computer-generated magnetic media supporting schedule data in 
the format prescribed by the Department, unless, as provided 
by rule, the Department grants an exception upon petition of 
the permittee. Each such report shall be accompanied by a copy 
of each invoice rendered by the permittee to any purchaser to 
whom the permittee delivered cigarettes of the type covered by 
the permit (or caused cigarettes of the type covered by the 
permit to be delivered) in Illinois during the period covered 
by such report. 
    Such permit may be suspended, canceled, or revoked 
whenever the permittee violates any provision of this Act or 
any lawful rule or regulation issued by the Department 
pursuant to this Act, is determined to be ineligible for a 
distributor's permit under this Act as provided in this 
Section, or notifies the Department in writing of his or her 
desire to have the permit canceled. The Department shall have 
the power, in its discretion, to issue a new permit after such 
suspension, cancellation, or revocation, except when the 
person who would receive the permit is ineligible to receive a 
distributor's permit under this Act. 
    All permits issued by the Department under this Act shall 
be valid for a period not to exceed one year after issuance 
unless sooner revoked, canceled, or suspended as provided in 
this Act. 
(Source: P.A. 100-286, eff. 1-1-18.)
 
    (35 ILCS 130/9)  (from Ch. 120, par. 453.9)
    Sec. 9. Returns; remittance. Every distributor who is 
required to procure a license under this Act, but who is not a 
manufacturer of cigarettes in original packages which are 
contained in a sealed transparent wrapper, shall, on or before 
the 15th day of each calendar month, file a return with the 
Department, showing the quantity of cigarettes manufactured 
during the preceding calendar month, the quantity of 
cigarettes brought into this State or caused to be brought 
into this State from outside this State during the preceding 
calendar month without authorized evidence on the original 
packages of such cigarettes underneath the sealed transparent 
wrapper thereof that the tax liability imposed by this Act has 
been assumed by the out-of-State seller of such cigarettes, 
the quantity of cigarettes purchased tax-paid during the 
preceding calendar month either within or outside this State, 
the quantity of cigarettes sold by manufacturer 
representatives on behalf of the distributor, the quantity of 
cigarettes sold to manufacturer representatives, and the 
quantity of cigarettes sold or otherwise disposed of during 
the preceding calendar month. Such return shall be filed upon 
forms furnished and prescribed by the Department and shall 
contain such other information as the Department may 
reasonably require. Information that the Department may 
reasonably require includes information related to the uniform 
regulation and taxation of cigarettes. The Department may 
promulgate rules to require that the distributor's return be 
accompanied by appropriate computer-generated magnetic media 
supporting schedule data in the format required by the 
Department, unless, as provided by rule, the Department grants 
an exception upon petition of a distributor.
    Illinois manufacturers of cigarettes in original packages 
which are contained inside a sealed transparent wrapper shall 
file a return by the 5th day of each month covering the 
preceding calendar month. Each such return shall be 
accompanied by the appropriate remittance for tax as provided 
in Section 3 of this Act. Each such return shall show the 
quantity of such cigarettes manufactured during the period 
covered by the return, the quantity of cigarettes sold or 
otherwise disposed of during the period covered by the return 
and such other information as the Department may lawfully 
require. Information that the Department may lawfully require 
includes information related to the uniform regulation and 
taxation of cigarettes. Such returns shall be filed on forms 
prescribed and furnished by the Department. Each such return 
shall be accompanied by a copy of each invoice rendered by such 
manufacturer to any purchaser to whom such manufacturer 
delivered cigarettes (or caused cigarettes to be delivered) 
during the period covered by the return. The Department may 
promulgate rules to require that the manufacturer's return be 
accompanied by appropriate computer-generated magnetic media 
supporting schedule data in the format required by the 
Department, unless, as provided by rule, the Department grants 
an exception upon petition of a manufacturer.
(Source: P.A. 97-587, eff. 8-26-11.)
 
    (35 ILCS 130/9e)
    Sec. 9e. Secondary distributors; reports. Every secondary 
distributor who is required to procure a license under this 
Act shall, on or before the 15th day of each calendar month, 
file a report with the Department, showing the quantity of 
cigarettes purchased during the preceding calendar month 
either within or outside this State, and the quantity of 
cigarettes sold to retailers or otherwise disposed of during 
the preceding calendar month. Such reports shall be filed 
electronically in such form prescribed by the Department and 
shall contain such other information as the Department may 
reasonably require. Information that the Department may 
reasonably require includes information related to the uniform 
regulation and taxation of cigarettes. The secondary 
distributor's report shall be accompanied by appropriate 
computer generated magnetic media supporting schedule data in 
the format required by the Department, unless, as provided by 
rule, the Department grants an exception upon petition of a 
secondary distributor.
    A certification by the Director of the Department that a 
report has not been filed, or that information has not been 
supplied pursuant to the provisions of this Act, shall be 
prima facie evidence thereof.
(Source: P.A. 96-1027, eff. 7-12-10.)
 
    (35 ILCS 130/9f)
    Sec. 9f. Manufacturer representatives; reports. Every 
manufacturer with authority to maintain manufacturer 
representatives as defined by Section 4f of this Act shall, on 
or before the 15th day of each calendar month, file a report 
with the Department, showing the quantity of cigarettes 
purchased from licensed distributors during the preceding 
calendar month, either within or outside this State, and the 
quantity of cigarettes sold to retailers or otherwise disposed 
of during the preceding calendar month. Such reports shall be 
filed in the form prescribed by the Department and shall 
contain such other information as the Department may 
reasonably require. Information that the Department may 
reasonably require includes information related to the uniform 
regulation and taxation of cigarettes. The report shall be 
filed electronically and be accompanied by appropriate 
computer generated magnetic media supporting schedule data in 
the format required by the Department, unless, as provided by 
rule, the Department grants an exception upon petition of a 
manufacturer with authority to maintain manufacturer 
representatives in this State.
    A certification by the Director of the Department that a 
report has not been filed, or that information has not been 
supplied pursuant to the provisions of this Act, shall be 
prima facie evidence thereof. 
(Source: P.A. 97-587, eff. 8-26-11.)
 
    Section 80-10. The Cigarette Use Tax Act is amended by 
changing Sections 11 and 11a as follows:
 
    (35 ILCS 135/11)  (from Ch. 120, par. 453.41)
    Sec. 11. Return by distributor or manufacturer. Every 
distributor, who is required or authorized to collect tax 
under this Act, but who is not a manufacturer of cigarettes in 
original packages which are contained in a sealed transparent 
wrapper, shall, on or before the 15th day of each calendar 
month, file a return with the Department, showing such 
information as the Department may reasonably require. 
Information that the Department may reasonably require 
includes information related to the uniform regulation and 
taxation of cigarettes. The Department may promulgate rules to 
require that the distributor's return be accompanied by 
appropriate computer-generated magnetic media supporting 
schedule data in the format required by the Department, 
unless, as provided by rule, the Department grants an 
exception upon petition of a distributor.
    Illinois manufacturers of cigarettes in original packages 
which are contained inside a sealed transparent wrapper shall 
file a return by the 5th day of each month covering the 
preceding calendar month. Each such return shall be 
accompanied by the appropriate remittance for tax as provided 
in Section 3 of this Act. Each such return shall disclose such 
information as the Department may lawfully require. 
Information that the Department may lawfully require includes 
information related to the uniform regulation and taxation of 
cigarettes. Each such return shall be accompanied by a copy of 
each invoice rendered by such manufacturer to any purchaser to 
whom such manufacturer delivered cigarettes (or caused 
cigarettes to be delivered) during the period covered by the 
return. The Department may promulgate rules to require that 
the manufacturer's return be accompanied by appropriate 
computer-generated magnetic media supporting schedule data in 
the format required by the Department, unless, as provided by 
rule, the Department grants an exception upon petition of a 
manufacturer.
    No distributor shall be required to return information to 
the extent to which the reporting of such information would be 
a duplication of such distributor's reporting of information 
in any return which he is required to file with the Department 
under the Cigarette Tax Act. Returns shall be filed on forms 
prescribed by the Department.
(Source: P.A. 92-322, eff. 1-1-02.)
 
    (35 ILCS 135/11a)
    Sec. 11a. Secondary distributors; reports. Every secondary 
distributor who is required to procure, or is authorized to 
procure, a license under this Act shall, on or before the 15th 
day of each calendar month, file a report with the Department, 
showing the quantity of cigarettes purchased during the 
preceding calendar month either within or outside this State, 
and the quantity of cigarettes sold to Illinois retailers or 
otherwise disposed of during the preceding calendar month. 
Such reports shall be filed electronically in such form 
prescribed by the Department and shall contain such other 
information as the Department may reasonably require. 
Information that the Department may reasonably require 
includes information related to the uniform regulation and 
taxation of cigarettes. The secondary distributor's report 
shall be accompanied by appropriate computer generated 
magnetic media supporting schedule data in the format required 
by the Department, unless, as provided by rule, the Department 
grants an exception upon petition of a secondary distributor.
    A certification by the Director of the Department that a 
report has not been filed, or that information has not been 
supplied pursuant to the provisions of this Act, shall be 
prima facie evidence thereof.
(Source: P.A. 96-1027, eff. 7-12-10.)
 
    Section 80-15. The Tobacco Products Tax Act of 1995 is 
amended by changing Section 10-30 as follows:
 
    (35 ILCS 143/10-30)
    Sec. 10-30. Returns.  
    (a) Every distributor shall, on or before the 15th day of 
each month, file a return with the Department covering the 
preceding calendar month. The return shall disclose the 
wholesale price for all tobacco products other than moist 
snuff and the quantity in ounces of moist snuff sold or 
otherwise disposed of and other information that the 
Department may reasonably require. Information that the 
Department may reasonably require includes information related 
to the uniform regulation and taxation of tobacco products. 
The return shall be filed upon a form prescribed and furnished 
by the Department.
    (b) In addition to the information required under 
subsection (a), on or before the 15th day of each month, 
covering the preceding calendar month, each stamping 
distributor shall, on forms prescribed and furnished by the 
Department, report the quantity of little cigars sold or 
otherwise disposed of, including the number of packages of 
little cigars sold or disposed of during the month containing 
20 or 25 little cigars. 
    (c) At the time when any return of any distributor is due 
to be filed with the Department, the distributor shall also 
remit to the Department the tax liability that the distributor 
has incurred for transactions occurring in the preceding 
calendar month.
    (d) The Department may adopt rules to require the 
electronic filing of any return or document required to be 
filed under this Act. Those rules may provide for exceptions 
from the filing requirement set forth in this paragraph for 
persons who demonstrate that they do not have access to the 
Internet and petition the Department to waive the electronic 
filing requirement. 
    (e) If any payment provided for in this Section exceeds 
the distributor's liabilities under this Act, as shown on an 
original return, the distributor may credit such excess 
payment against liability subsequently to be remitted to the 
Department under this Act, in accordance with reasonable rules 
adopted by the Department. 
(Source: P.A. 100-1171, eff. 1-4-19.)
 
ARTICLE 85. 

 
    Section 85-5. The Illinois Income Tax Act is amended by 
changing Section 304 as follows:
 
    (35 ILCS 5/304)  (from Ch. 120, par. 3-304)
    Sec. 304. Business income of persons other than residents. 
    (a) In general. The business income of a person other than 
a resident shall be allocated to this State if such person's 
business income is derived solely from this State. If a person 
other than a resident derives business income from this State 
and one or more other states, then, for tax years ending on or 
before December 30, 1998, and except as otherwise provided by 
this Section, such person's business income shall be 
apportioned to this State by multiplying the income by a 
fraction, the numerator of which is the sum of the property 
factor (if any), the payroll factor (if any) and 200% of the 
sales factor (if any), and the denominator of which is 4 
reduced by the number of factors other than the sales factor 
which have a denominator of zero and by an additional 2 if the 
sales factor has a denominator of zero. For tax years ending on 
or after December 31, 1998, and except as otherwise provided 
by this Section, persons other than residents who derive 
business income from this State and one or more other states 
shall compute their apportionment factor by weighting their 
property, payroll, and sales factors as provided in subsection 
(h) of this Section.
    (1) Property factor.
        (A) The property factor is a fraction, the numerator 
    of which is the average value of the person's real and 
    tangible personal property owned or rented and used in the 
    trade or business in this State during the taxable year 
    and the denominator of which is the average value of all 
    the person's real and tangible personal property owned or 
    rented and used in the trade or business during the 
    taxable year.
        (B) Property owned by the person is valued at its 
    original cost. Property rented by the person is valued at 
    8 times the net annual rental rate. Net annual rental rate 
    is the annual rental rate paid by the person less any 
    annual rental rate received by the person from 
    sub-rentals.
        (C) The average value of property shall be determined 
    by averaging the values at the beginning and ending of the 
    taxable year, but the Director may require the averaging 
    of monthly values during the taxable year if reasonably 
    required to reflect properly the average value of the 
    person's property.
    (2) Payroll factor.
        (A) The payroll factor is a fraction, the numerator of 
    which is the total amount paid in this State during the 
    taxable year by the person for compensation, and the 
    denominator of which is the total compensation paid 
    everywhere during the taxable year.
        (B) Compensation is paid in this State if:
            (i) The individual's service is performed entirely 
        within this State;
            (ii) The individual's service is performed both 
        within and without this State, but the service 
        performed without this State is incidental to the 
        individual's service performed within this State; or
            (iii) For tax years ending prior to December 31, 
        2020, some of the service is performed within this 
        State and either the base of operations, or if there is 
        no base of operations, the place from which the 
        service is directed or controlled is within this 
        State, or the base of operations or the place from 
        which the service is directed or controlled is not in 
        any state in which some part of the service is 
        performed, but the individual's residence is in this 
        State. For tax years ending on or after December 31, 
        2020, compensation is paid in this State if some of the 
        individual's service is performed within this State, 
        the individual's service performed within this State 
        is nonincidental to the individual's service performed 
        without this State, and the individual's service is 
        performed within this State for more than 30 working 
        days during the tax year. The amount of compensation 
        paid in this State shall include the portion of the 
        individual's total compensation for services performed 
        on behalf of his or her employer during the tax year 
        which the number of working days spent within this 
        State during the tax year bears to the total number of 
        working days spent both within and without this State 
        during the tax year. For purposes of this paragraph: 
                (a) The term "working day" means all days 
            during the tax year in which the individual 
            performs duties on behalf of his or her employer. 
            All days in which the individual performs no 
            duties on behalf of his or her employer (e.g., 
            weekends, vacation days, sick days, and holidays) 
            are not working days.
                (b) A working day is spent within this State 
            if: 
                    (1) the individual performs service on 
                behalf of the employer and a greater amount of 
                time on that day is spent by the individual 
                performing duties on behalf of the employer 
                within this State, without regard to time 
                spent traveling, than is spent performing 
                duties on behalf of the employer without this 
                State; or
                    (2) the only service the individual 
                performs on behalf of the employer on that day 
                is traveling to a destination within this 
                State, and the individual arrives on that day. 
                (c) Working days spent within this State do 
            not include any day in which the employee is 
            performing services in this State during a 
            disaster period solely in response to a request 
            made to his or her employer by the government of 
            this State, by any political subdivision of this 
            State, or by a person conducting business in this 
            State to perform disaster or emergency-related 
            services in this State. For purposes of this item 
            (c): 
                    "Declared State disaster or emergency" 
                means a disaster or emergency event (i) for 
                which a Governor's proclamation of a state of 
                emergency has been issued or (ii) for which a 
                Presidential declaration of a federal major 
                disaster or emergency has been issued. 
                    "Disaster period" means a period that 
                begins 10 days prior to the date of the 
                Governor's proclamation or the President's 
                declaration (whichever is earlier) and extends 
                for a period of 60 calendar days after the end 
                of the declared disaster or emergency period. 
                    "Disaster or emergency-related services" 
                means repairing, renovating, installing, 
                building, or rendering services or conducting 
                other business activities that relate to 
                infrastructure that has been damaged, 
                impaired, or destroyed by the declared State 
                disaster or emergency. 
                    "Infrastructure" means property and 
                equipment owned or used by a public utility, 
                communications network, broadband and internet 
                service provider, cable and video service 
                provider, electric or gas distribution system, 
                or water pipeline that provides service to 
                more than one customer or person, including 
                related support facilities. "Infrastructure" 
                includes, but is not limited to, real and 
                personal property such as buildings, offices, 
                power lines, cable lines, poles, 
                communications lines, pipes, structures, and 
                equipment. 
            (iv) Compensation paid to nonresident professional 
        athletes.
            (a) General. The Illinois source income of a 
        nonresident individual who is a member of a 
        professional athletic team includes the portion of the 
        individual's total compensation for services performed 
        as a member of a professional athletic team during the 
        taxable year which the number of duty days spent 
        within this State performing services for the team in 
        any manner during the taxable year bears to the total 
        number of duty days spent both within and without this 
        State during the taxable year.
            (b) Travel days. Travel days that do not involve 
        either a game, practice, team meeting, or other 
        similar team event are not considered duty days spent 
        in this State. However, such travel days are 
        considered in the total duty days spent both within 
        and without this State.
            (c) Definitions. For purposes of this subpart 
        (iv):
                (1) The term "professional athletic team" 
            includes, but is not limited to, any professional 
            baseball, basketball, football, soccer, or hockey 
            team.
                (2) The term "member of a professional 
            athletic team" includes those employees who are 
            active players, players on the disabled list, and 
            any other persons required to travel and who 
            travel with and perform services on behalf of a 
            professional athletic team on a regular basis. 
            This includes, but is not limited to, coaches, 
            managers, and trainers.
                (3) Except as provided in items (C) and (D) of 
            this subpart (3), the term "duty days" means all 
            days during the taxable year from the beginning of 
            the professional athletic team's official 
            pre-season training period through the last game 
            in which the team competes or is scheduled to 
            compete. Duty days shall be counted for the year 
            in which they occur, including where a team's 
            official pre-season training period through the 
            last game in which the team competes or is 
            scheduled to compete, occurs during more than one 
            tax year.
                    (A) Duty days shall also include days on 
                which a member of a professional athletic team 
                performs service for a team on a date that 
                does not fall within the foregoing period 
                (e.g., participation in instructional leagues, 
                the "All Star Game", or promotional 
                "caravans"). Performing a service for a 
                professional athletic team includes conducting 
                training and rehabilitation activities, when 
                such activities are conducted at team 
                facilities.
                    (B) Also included in duty days are game 
                days, practice days, days spent at team 
                meetings, promotional caravans, preseason 
                training camps, and days served with the team 
                through all post-season games in which the 
                team competes or is scheduled to compete.
                    (C) Duty days for any person who joins a 
                team during the period from the beginning of 
                the professional athletic team's official 
                pre-season training period through the last 
                game in which the team competes, or is 
                scheduled to compete, shall begin on the day 
                that person joins the team. Conversely, duty 
                days for any person who leaves a team during 
                this period shall end on the day that person 
                leaves the team. Where a person switches teams 
                during a taxable year, a separate duty-day 
                calculation shall be made for the period the 
                person was with each team.
                    (D) Days for which a member of a 
                professional athletic team is not compensated 
                and is not performing services for the team in 
                any manner, including days when such member of 
                a professional athletic team has been 
                suspended without pay and prohibited from 
                performing any services for the team, shall 
                not be treated as duty days.
                    (E) Days for which a member of a 
                professional athletic team is on the disabled 
                list and does not conduct rehabilitation 
                activities at facilities of the team, and is 
                not otherwise performing services for the team 
                in Illinois, shall not be considered duty days 
                spent in this State. All days on the disabled 
                list, however, are considered to be included 
                in total duty days spent both within and 
                without this State.
                (4) The term "total compensation for services 
            performed as a member of a professional athletic 
            team" means the total compensation received during 
            the taxable year for services performed:
                    (A) from the beginning of the official 
                pre-season training period through the last 
                game in which the team competes or is 
                scheduled to compete during that taxable year; 
                and
                    (B) during the taxable year on a date 
                which does not fall within the foregoing 
                period (e.g., participation in instructional 
                leagues, the "All Star Game", or promotional 
                caravans).
                This compensation shall include, but is not 
            limited to, salaries, wages, bonuses as described 
            in this subpart, and any other type of 
            compensation paid during the taxable year to a 
            member of a professional athletic team for 
            services performed in that year. This compensation 
            does not include strike benefits, severance pay, 
            termination pay, contract or option year buy-out 
            payments, expansion or relocation payments, or any 
            other payments not related to services performed 
            for the team.
                For purposes of this subparagraph, "bonuses" 
            included in "total compensation for services 
            performed as a member of a professional athletic 
            team" subject to the allocation described in 
            Section 302(c)(1) are: bonuses earned as a result 
            of play (i.e., performance bonuses) during the 
            season, including bonuses paid for championship, 
            playoff or "bowl" games played by a team, or for 
            selection to all-star league or other honorary 
            positions; and bonuses paid for signing a 
            contract, unless the payment of the signing bonus 
            is not conditional upon the signee playing any 
            games for the team or performing any subsequent 
            services for the team or even making the team, the 
            signing bonus is payable separately from the 
            salary and any other compensation, and the signing 
            bonus is nonrefundable. 
    (3) Sales factor.
        (A) The sales factor is a fraction, the numerator of 
    which is the total sales of the person in this State during 
    the taxable year, and the denominator of which is the 
    total sales of the person everywhere during the taxable 
    year.
        (B) Sales of tangible personal property are in this 
    State if:
            (i) The property is delivered or shipped to a 
        purchaser, other than the United States government, 
        within this State regardless of the f. o. b. point or 
        other conditions of the sale; or
            (ii) The property is shipped from an office, 
        store, warehouse, factory or other place of storage in 
        this State and either the purchaser is the United 
        States government or the person is not taxable in the 
        state of the purchaser; provided, however, that 
        premises owned or leased by a person who has 
        independently contracted with the seller for the 
        printing of newspapers, periodicals or books shall not 
        be deemed to be an office, store, warehouse, factory 
        or other place of storage for purposes of this 
        Section. Sales of tangible personal property are not 
        in this State if the seller and purchaser would be 
        members of the same unitary business group but for the 
        fact that either the seller or purchaser is a person 
        with 80% or more of total business activity outside of 
        the United States and the property is purchased for 
        resale.
        (B-1) Patents, copyrights, trademarks, and similar 
    items of intangible personal property.
            (i) Gross receipts from the licensing, sale, or 
        other disposition of a patent, copyright, trademark, 
        or similar item of intangible personal property, other 
        than gross receipts governed by paragraph (B-7) of 
        this item (3), are in this State to the extent the item 
        is utilized in this State during the year the gross 
        receipts are included in gross income.
            (ii) Place of utilization.
                (I) A patent is utilized in a state to the 
            extent that it is employed in production, 
            fabrication, manufacturing, or other processing in 
            the state or to the extent that a patented product 
            is produced in the state. If a patent is utilized 
            in more than one state, the extent to which it is 
            utilized in any one state shall be a fraction 
            equal to the gross receipts of the licensee or 
            purchaser from sales or leases of items produced, 
            fabricated, manufactured, or processed within that 
            state using the patent and of patented items 
            produced within that state, divided by the total 
            of such gross receipts for all states in which the 
            patent is utilized.
                (II) A copyright is utilized in a state to the 
            extent that printing or other publication 
            originates in the state. If a copyright is 
            utilized in more than one state, the extent to 
            which it is utilized in any one state shall be a 
            fraction equal to the gross receipts from sales or 
            licenses of materials printed or published in that 
            state divided by the total of such gross receipts 
            for all states in which the copyright is utilized.
                (III) Trademarks and other items of intangible 
            personal property governed by this paragraph (B-1) 
            are utilized in the state in which the commercial 
            domicile of the licensee or purchaser is located.
            (iii) If the state of utilization of an item of 
        property governed by this paragraph (B-1) cannot be 
        determined from the taxpayer's books and records or 
        from the books and records of any person related to the 
        taxpayer within the meaning of Section 267(b) of the 
        Internal Revenue Code, 26 U.S.C. 267, the gross 
        receipts attributable to that item shall be excluded 
        from both the numerator and the denominator of the 
        sales factor.
        (B-2) Gross receipts from the license, sale, or other 
    disposition of patents, copyrights, trademarks, and 
    similar items of intangible personal property, other than 
    gross receipts governed by paragraph (B-7) of this item 
    (3), may be included in the numerator or denominator of 
    the sales factor only if gross receipts from licenses, 
    sales, or other disposition of such items comprise more 
    than 50% of the taxpayer's total gross receipts included 
    in gross income during the tax year and during each of the 
    2 immediately preceding tax years; provided that, when a 
    taxpayer is a member of a unitary business group, such 
    determination shall be made on the basis of the gross 
    receipts of the entire unitary business group.
        (B-5) For taxable years ending on or after December 
    31, 2008, except as provided in subsections (ii) through 
    (vii), receipts from the sale of telecommunications 
    service or mobile telecommunications service are in this 
    State if the customer's service address is in this State.
            (i) For purposes of this subparagraph (B-5), the 
        following terms have the following meanings:
            "Ancillary services" means services that are 
        associated with or incidental to the provision of 
        "telecommunications services", including, but not 
        limited to, "detailed telecommunications billing", 
        "directory assistance", "vertical service", and "voice 
        mail services".
            "Air-to-Ground Radiotelephone service" means a 
        radio service, as that term is defined in 47 CFR 22.99, 
        in which common carriers are authorized to offer and 
        provide radio telecommunications service for hire to 
        subscribers in aircraft.
            "Call-by-call Basis" means any method of charging 
        for telecommunications services where the price is 
        measured by individual calls.
            "Communications Channel" means a physical or 
        virtual path of communications over which signals are 
        transmitted between or among customer channel 
        termination points.
            "Conference bridging service" means an "ancillary 
        service" that links two or more participants of an 
        audio or video conference call and may include the 
        provision of a telephone number. "Conference bridging 
        service" does not include the "telecommunications 
        services" used to reach the conference bridge.
            "Customer Channel Termination Point" means the 
        location where the customer either inputs or receives 
        the communications.
            "Detailed telecommunications billing service" 
        means an "ancillary service" of separately stating 
        information pertaining to individual calls on a 
        customer's billing statement.
            "Directory assistance" means an "ancillary 
        service" of providing telephone number information, 
        and/or address information.
            "Home service provider" means the facilities based 
        carrier or reseller with which the customer contracts 
        for the provision of mobile telecommunications 
        services.
            "Mobile telecommunications service" means 
        commercial mobile radio service, as defined in Section 
        20.3 of Title 47 of the Code of Federal Regulations as 
        in effect on June 1, 1999.
            "Place of primary use" means the street address 
        representative of where the customer's use of the 
        telecommunications service primarily occurs, which 
        must be the residential street address or the primary 
        business street address of the customer. In the case 
        of mobile telecommunications services, "place of 
        primary use" must be within the licensed service area 
        of the home service provider.
            "Post-paid telecommunication service" means the 
        telecommunications service obtained by making a 
        payment on a call-by-call basis either through the use 
        of a credit card or payment mechanism such as a bank 
        card, travel card, credit card, or debit card, or by 
        charge made to a telephone number which is not 
        associated with the origination or termination of the 
        telecommunications service. A post-paid calling 
        service includes telecommunications service, except a 
        prepaid wireless calling service, that would be a 
        prepaid calling service except it is not exclusively a 
        telecommunication service.
            "Prepaid telecommunication service" means the 
        right to access exclusively telecommunications 
        services, which must be paid for in advance and which 
        enables the origination of calls using an access 
        number or authorization code, whether manually or 
        electronically dialed, and that is sold in 
        predetermined units or dollars of which the number 
        declines with use in a known amount.
            "Prepaid Mobile telecommunication service" means a 
        telecommunications service that provides the right to 
        utilize mobile wireless service as well as other 
        non-telecommunication services, including, but not 
        limited to, ancillary services, which must be paid for 
        in advance that is sold in predetermined units or 
        dollars of which the number declines with use in a 
        known amount.
            "Private communication service" means a 
        telecommunication service that entitles the customer 
        to exclusive or priority use of a communications 
        channel or group of channels between or among 
        termination points, regardless of the manner in which 
        such channel or channels are connected, and includes 
        switching capacity, extension lines, stations, and any 
        other associated services that are provided in 
        connection with the use of such channel or channels.
            "Service address" means:
                (a) The location of the telecommunications 
            equipment to which a customer's call is charged 
            and from which the call originates or terminates, 
            regardless of where the call is billed or paid;
                (b) If the location in line (a) is not known, 
            service address means the origination point of the 
            signal of the telecommunications services first 
            identified by either the seller's 
            telecommunications system or in information 
            received by the seller from its service provider 
            where the system used to transport such signals is 
            not that of the seller; and
                (c) If the locations in line (a) and line (b) 
            are not known, the service address means the 
            location of the customer's place of primary use.
            "Telecommunications service" means the electronic 
        transmission, conveyance, or routing of voice, data, 
        audio, video, or any other information or signals to a 
        point, or between or among points. The term 
        "telecommunications service" includes such 
        transmission, conveyance, or routing in which computer 
        processing applications are used to act on the form, 
        code or protocol of the content for purposes of 
        transmission, conveyance or routing without regard to 
        whether such service is referred to as voice over 
        Internet protocol services or is classified by the 
        Federal Communications Commission as enhanced or value 
        added. "Telecommunications service" does not include:
                (a) Data processing and information services 
            that allow data to be generated, acquired, stored, 
            processed, or retrieved and delivered by an 
            electronic transmission to a purchaser when such 
            purchaser's primary purpose for the underlying 
            transaction is the processed data or information;
                (b) Installation or maintenance of wiring or 
            equipment on a customer's premises;
                (c) Tangible personal property;
                (d) Advertising, including, but not limited 
            to, directory advertising;
                (e) Billing and collection services provided 
            to third parties;
                (f) Internet access service;
                (g) Radio and television audio and video 
            programming services, regardless of the medium, 
            including the furnishing of transmission, 
            conveyance and routing of such services by the 
            programming service provider. Radio and television 
            audio and video programming services shall 
            include, but not be limited to, cable service as 
            defined in 47 USC 522(6) and audio and video 
            programming services delivered by commercial 
            mobile radio service providers, as defined in 47 
            CFR 20.3;
                (h) "Ancillary services"; or
                (i) Digital products "delivered 
            electronically", including, but not limited to, 
            software, music, video, reading materials or ring 
            tones.
            "Vertical service" means an "ancillary service" 
        that is offered in connection with one or more 
        "telecommunications services", which offers advanced 
        calling features that allow customers to identify 
        callers and to manage multiple calls and call 
        connections, including "conference bridging services".
            "Voice mail service" means an "ancillary service" 
        that enables the customer to store, send or receive 
        recorded messages. "Voice mail service" does not 
        include any "vertical services" that the customer may 
        be required to have in order to utilize the "voice mail 
        service".
            (ii) Receipts from the sale of telecommunications 
        service sold on an individual call-by-call basis are 
        in this State if either of the following applies:
                (a) The call both originates and terminates in 
            this State.
                (b) The call either originates or terminates 
            in this State and the service address is located 
            in this State.
            (iii) Receipts from the sale of postpaid 
        telecommunications service at retail are in this State 
        if the origination point of the telecommunication 
        signal, as first identified by the service provider's 
        telecommunication system or as identified by 
        information received by the seller from its service 
        provider if the system used to transport 
        telecommunication signals is not the seller's, is 
        located in this State.
            (iv) Receipts from the sale of prepaid 
        telecommunications service or prepaid mobile 
        telecommunications service at retail are in this State 
        if the purchaser obtains the prepaid card or similar 
        means of conveyance at a location in this State. 
        Receipts from recharging a prepaid telecommunications 
        service or mobile telecommunications service is in 
        this State if the purchaser's billing information 
        indicates a location in this State.
            (v) Receipts from the sale of private 
        communication services are in this State as follows:
                (a) 100% of receipts from charges imposed at 
            each channel termination point in this State.
                (b) 100% of receipts from charges for the 
            total channel mileage between each channel 
            termination point in this State.
                (c) 50% of the total receipts from charges for 
            service segments when those segments are between 2 
            customer channel termination points, 1 of which is 
            located in this State and the other is located 
            outside of this State, which segments are 
            separately charged.
                (d) The receipts from charges for service 
            segments with a channel termination point located 
            in this State and in two or more other states, and 
            which segments are not separately billed, are in 
            this State based on a percentage determined by 
            dividing the number of customer channel 
            termination points in this State by the total 
            number of customer channel termination points.
            (vi) Receipts from charges for ancillary services 
        for telecommunications service sold to customers at 
        retail are in this State if the customer's primary 
        place of use of telecommunications services associated 
        with those ancillary services is in this State. If the 
        seller of those ancillary services cannot determine 
        where the associated telecommunications are located, 
        then the ancillary services shall be based on the 
        location of the purchaser. 
            (vii) Receipts to access a carrier's network or 
        from the sale of telecommunication services or 
        ancillary services for resale are in this State as 
        follows:
                (a) 100% of the receipts from access fees 
            attributable to intrastate telecommunications 
            service that both originates and terminates in 
            this State.
                (b) 50% of the receipts from access fees 
            attributable to interstate telecommunications 
            service if the interstate call either originates 
            or terminates in this State.
                (c) 100% of the receipts from interstate end 
            user access line charges, if the customer's 
            service address is in this State. As used in this 
            subdivision, "interstate end user access line 
            charges" includes, but is not limited to, the 
            surcharge approved by the federal communications 
            commission and levied pursuant to 47 CFR 69.
                (d) Gross receipts from sales of 
            telecommunication services or from ancillary 
            services for telecommunications services sold to 
            other telecommunication service providers for 
            resale shall be sourced to this State using the 
            apportionment concepts used for non-resale 
            receipts of telecommunications services if the 
            information is readily available to make that 
            determination. If the information is not readily 
            available, then the taxpayer may use any other 
            reasonable and consistent method. 
        (B-7) For taxable years ending on or after December 
    31, 2008, receipts from the sale of broadcasting services 
    are in this State if the broadcasting services are 
    received in this State. For purposes of this paragraph 
    (B-7), the following terms have the following meanings:
            "Advertising revenue" means consideration received 
        by the taxpayer in exchange for broadcasting services 
        or allowing the broadcasting of commercials or 
        announcements in connection with the broadcasting of 
        film or radio programming, from sponsorships of the 
        programming, or from product placements in the 
        programming.
            "Audience factor" means the ratio that the 
        audience or subscribers located in this State of a 
        station, a network, or a cable system bears to the 
        total audience or total subscribers for that station, 
        network, or cable system. The audience factor for film 
        or radio programming shall be determined by reference 
        to the books and records of the taxpayer or by 
        reference to published rating statistics provided the 
        method used by the taxpayer is consistently used from 
        year to year for this purpose and fairly represents 
        the taxpayer's activity in this State.
            "Broadcast" or "broadcasting" or "broadcasting 
        services" means the transmission or provision of film 
        or radio programming, whether through the public 
        airwaves, by cable, by direct or indirect satellite 
        transmission, or by any other means of communication, 
        either through a station, a network, or a cable 
        system.
            "Film" or "film programming" means the broadcast 
        on television of any and all performances, events, or 
        productions, including, but not limited to, news, 
        sporting events, plays, stories, or other literary, 
        commercial, educational, or artistic works, either 
        live or through the use of video tape, disc, or any 
        other type of format or medium. Each episode of a 
        series of films produced for television shall 
        constitute separate "film" notwithstanding that the 
        series relates to the same principal subject and is 
        produced during one or more tax periods.
            "Radio" or "radio programming" means the broadcast 
        on radio of any and all performances, events, or 
        productions, including, but not limited to, news, 
        sporting events, plays, stories, or other literary, 
        commercial, educational, or artistic works, either 
        live or through the use of an audio tape, disc, or any 
        other format or medium. Each episode in a series of 
        radio programming produced for radio broadcast shall 
        constitute a separate "radio programming" 
        notwithstanding that the series relates to the same 
        principal subject and is produced during one or more 
        tax periods.
                (i) In the case of advertising revenue from 
            broadcasting, the customer is the advertiser and 
            the service is received in this State if the 
            commercial domicile of the advertiser is in this 
            State.
                (ii) In the case where film or radio 
            programming is broadcast by a station, a network, 
            or a cable system for a fee or other remuneration 
            received from the recipient of the broadcast, the 
            portion of the service that is received in this 
            State is measured by the portion of the recipients 
            of the broadcast located in this State. 
            Accordingly, the fee or other remuneration for 
            such service that is included in the Illinois 
            numerator of the sales factor is the total of 
            those fees or other remuneration received from 
            recipients in Illinois. For purposes of this 
            paragraph, a taxpayer may determine the location 
            of the recipients of its broadcast using the 
            address of the recipient shown in its contracts 
            with the recipient or using the billing address of 
            the recipient in the taxpayer's records.
                (iii) In the case where film or radio 
            programming is broadcast by a station, a network, 
            or a cable system for a fee or other remuneration 
            from the person providing the programming, the 
            portion of the broadcast service that is received 
            by such station, network, or cable system in this 
            State is measured by the portion of recipients of 
            the broadcast located in this State. Accordingly, 
            the amount of revenue related to such an 
            arrangement that is included in the Illinois 
            numerator of the sales factor is the total fee or 
            other total remuneration from the person providing 
            the programming related to that broadcast 
            multiplied by the Illinois audience factor for 
            that broadcast.
                (iv) In the case where film or radio 
            programming is provided by a taxpayer that is a 
            network or station to a customer for broadcast in 
            exchange for a fee or other remuneration from that 
            customer the broadcasting service is received at 
            the location of the office of the customer from 
            which the services were ordered in the regular 
            course of the customer's trade or business. 
            Accordingly, in such a case the revenue derived by 
            the taxpayer that is included in the taxpayer's 
            Illinois numerator of the sales factor is the 
            revenue from such customers who receive the 
            broadcasting service in Illinois.
                (v) In the case where film or radio 
            programming is provided by a taxpayer that is not 
            a network or station to another person for 
            broadcasting in exchange for a fee or other 
            remuneration from that person, the broadcasting 
            service is received at the location of the office 
            of the customer from which the services were 
            ordered in the regular course of the customer's 
            trade or business. Accordingly, in such a case the 
            revenue derived by the taxpayer that is included 
            in the taxpayer's Illinois numerator of the sales 
            factor is the revenue from such customers who 
            receive the broadcasting service in Illinois.
        (B-8) Gross receipts from winnings under the Illinois 
    Lottery Law from the assignment of a prize under Section 
    13.1 of the Illinois Lottery Law are received in this 
    State. This paragraph (B-8) applies only to taxable years 
    ending on or after December 31, 2013. 
        (B-9) For taxable years ending on or after December 
    31, 2019, gross receipts from winnings from pari-mutuel 
    wagering conducted at a wagering facility licensed under 
    the Illinois Horse Racing Act of 1975 or from winnings 
    from gambling games conducted on a riverboat or in a 
    casino or organization gaming facility licensed under the 
    Illinois Gambling Act are in this State.
        (B-10) For taxable years ending on or after December 
    31, 2021, gross receipts from winnings from sports 
    wagering conducted in accordance with the Sports Wagering 
    Act are in this State. 
        (C) For taxable years ending before December 31, 2008, 
    sales, other than sales governed by paragraphs (B), (B-1), 
    (B-2), and (B-8) are in this State if:
            (i) The income-producing activity is performed in 
        this State; or
            (ii) The income-producing activity is performed 
        both within and without this State and a greater 
        proportion of the income-producing activity is 
        performed within this State than without this State, 
        based on performance costs.
        (C-5) For taxable years ending on or after December 
    31, 2008, sales, other than sales governed by paragraphs 
    (B), (B-1), (B-2), (B-5), and (B-7), are in this State if 
    any of the following criteria are met:
            (i) Sales from the sale or lease of real property 
        are in this State if the property is located in this 
        State.
            (ii) Sales from the lease or rental of tangible 
        personal property are in this State if the property is 
        located in this State during the rental period. Sales 
        from the lease or rental of tangible personal property 
        that is characteristically moving property, including, 
        but not limited to, motor vehicles, rolling stock, 
        aircraft, vessels, or mobile equipment are in this 
        State to the extent that the property is used in this 
        State.
            (iii) In the case of interest, net gains (but not 
        less than zero) and other items of income from 
        intangible personal property, the sale is in this 
        State if:
                (a) in the case of a taxpayer who is a dealer 
            in the item of intangible personal property within 
            the meaning of Section 475 of the Internal Revenue 
            Code, the income or gain is received from a 
            customer in this State. For purposes of this 
            subparagraph, a customer is in this State if the 
            customer is an individual, trust or estate who is 
            a resident of this State and, for all other 
            customers, if the customer's commercial domicile 
            is in this State. Unless the dealer has actual 
            knowledge of the residence or commercial domicile 
            of a customer during a taxable year, the customer 
            shall be deemed to be a customer in this State if 
            the billing address of the customer, as shown in 
            the records of the dealer, is in this State; or
                (b) in all other cases, if the 
            income-producing activity of the taxpayer is 
            performed in this State or, if the 
            income-producing activity of the taxpayer is 
            performed both within and without this State, if a 
            greater proportion of the income-producing 
            activity of the taxpayer is performed within this 
            State than in any other state, based on 
            performance costs.
            (iv) Sales of services are in this State if the 
        services are received in this State. For the purposes 
        of this section, gross receipts from the performance 
        of services provided to a corporation, partnership, or 
        trust may only be attributed to a state where that 
        corporation, partnership, or trust has a fixed place 
        of business. If the state where the services are 
        received is not readily determinable or is a state 
        where the corporation, partnership, or trust receiving 
        the service does not have a fixed place of business, 
        the services shall be deemed to be received at the 
        location of the office of the customer from which the 
        services were ordered in the regular course of the 
        customer's trade or business. If the ordering office 
        cannot be determined, the services shall be deemed to 
        be received at the office of the customer to which the 
        services are billed. If the taxpayer is not taxable in 
        the state in which the services are received, the sale 
        must be excluded from both the numerator and the 
        denominator of the sales factor. The Department shall 
        adopt rules prescribing where specific types of 
        service are received, including, but not limited to, 
        publishing, and utility service. 
        (D) For taxable years ending on or after December 31, 
    1995, the following items of income shall not be included 
    in the numerator or denominator of the sales factor: 
    dividends; amounts included under Section 78 of the 
    Internal Revenue Code; and Subpart F income as defined in 
    Section 952 of the Internal Revenue Code. No inference 
    shall be drawn from the enactment of this paragraph (D) in 
    construing this Section for taxable years ending before 
    December 31, 1995.
        (E) Paragraphs (B-1) and (B-2) shall apply to tax 
    years ending on or after December 31, 1999, provided that 
    a taxpayer may elect to apply the provisions of these 
    paragraphs to prior tax years. Such election shall be made 
    in the form and manner prescribed by the Department, shall 
    be irrevocable, and shall apply to all tax years; provided 
    that, if a taxpayer's Illinois income tax liability for 
    any tax year, as assessed under Section 903 prior to 
    January 1, 1999, was computed in a manner contrary to the 
    provisions of paragraphs (B-1) or (B-2), no refund shall 
    be payable to the taxpayer for that tax year to the extent 
    such refund is the result of applying the provisions of 
    paragraph (B-1) or (B-2) retroactively. In the case of a 
    unitary business group, such election shall apply to all 
    members of such group for every tax year such group is in 
    existence, but shall not apply to any taxpayer for any 
    period during which that taxpayer is not a member of such 
    group.
    (b) Insurance companies.
        (1) In general. Except as otherwise provided by 
    paragraph (2), business income of an insurance company for 
    a taxable year shall be apportioned to this State by 
    multiplying such income by a fraction, the numerator of 
    which is the direct premiums written for insurance upon 
    property or risk in this State, and the denominator of 
    which is the direct premiums written for insurance upon 
    property or risk everywhere. For purposes of this 
    subsection, the term "direct premiums written" means the 
    total amount of direct premiums written, assessments and 
    annuity considerations as reported for the taxable year on 
    the annual statement filed by the company with the 
    Illinois Director of Insurance in the form approved by the 
    National Convention of Insurance Commissioners or such 
    other form as may be prescribed in lieu thereof.
        (2) Reinsurance. If the principal source of premiums 
    written by an insurance company consists of premiums for 
    reinsurance accepted by it, the business income of such 
    company shall be apportioned to this State by multiplying 
    such income by a fraction, the numerator of which is the 
    sum of (i) direct premiums written for insurance upon 
    property or risk in this State, plus (ii) premiums written 
    for reinsurance accepted in respect of property or risk in 
    this State, and the denominator of which is the sum of 
    (iii) direct premiums written for insurance upon property 
    or risk everywhere, plus (iv) premiums written for 
    reinsurance accepted in respect of property or risk 
    everywhere. For purposes of this paragraph, premiums 
    written for reinsurance accepted in respect of property or 
    risk in this State, whether or not otherwise determinable, 
    may, at the election of the company, be determined on the 
    basis of the proportion which premiums written for 
    reinsurance accepted from companies commercially domiciled 
    in Illinois bears to premiums written for reinsurance 
    accepted from all sources, or, alternatively, in the 
    proportion which the sum of the direct premiums written 
    for insurance upon property or risk in this State by each 
    ceding company from which reinsurance is accepted bears to 
    the sum of the total direct premiums written by each such 
    ceding company for the taxable year. The election made by 
    a company under this paragraph for its first taxable year 
    ending on or after December 31, 2011, shall be binding for 
    that company for that taxable year and for all subsequent 
    taxable years, and may be altered only with the written 
    permission of the Department, which shall not be 
    unreasonably withheld.
    (c) Financial organizations.
        (1) In general. For taxable years ending before 
    December 31, 2008, business income of a financial 
    organization shall be apportioned to this State by 
    multiplying such income by a fraction, the numerator of 
    which is its business income from sources within this 
    State, and the denominator of which is its business income 
    from all sources. For the purposes of this subsection, the 
    business income of a financial organization from sources 
    within this State is the sum of the amounts referred to in 
    subparagraphs (A) through (E) following, but excluding the 
    adjusted income of an international banking facility as 
    determined in paragraph (2):
            (A) Fees, commissions or other compensation for 
        financial services rendered within this State;
            (B) Gross profits from trading in stocks, bonds or 
        other securities managed within this State;
            (C) Dividends, and interest from Illinois 
        customers, which are received within this State;
            (D) Interest charged to customers at places of 
        business maintained within this State for carrying 
        debit balances of margin accounts, without deduction 
        of any costs incurred in carrying such accounts; and
            (E) Any other gross income resulting from the 
        operation as a financial organization within this 
        State. 
        In computing the amounts referred to in paragraphs (A) 
    through (E) of this subsection, any amount received by a 
    member of an affiliated group (determined under Section 
    1504(a) of the Internal Revenue Code but without reference 
    to whether any such corporation is an "includible 
    corporation" under Section 1504(b) of the Internal Revenue 
    Code) from another member of such group shall be included 
    only to the extent such amount exceeds expenses of the 
    recipient directly related thereto.
        (2) International Banking Facility. For taxable years 
    ending before December 31, 2008:
            (A) Adjusted Income. The adjusted income of an 
        international banking facility is its income reduced 
        by the amount of the floor amount.
            (B) Floor Amount. The floor amount shall be the 
        amount, if any, determined by multiplying the income 
        of the international banking facility by a fraction, 
        not greater than one, which is determined as follows:
                (i) The numerator shall be:
                The average aggregate, determined on a 
            quarterly basis, of the financial organization's 
            loans to banks in foreign countries, to foreign 
            domiciled borrowers (except where secured 
            primarily by real estate) and to foreign 
            governments and other foreign official 
            institutions, as reported for its branches, 
            agencies and offices within the state on its 
            "Consolidated Report of Condition", Schedule A, 
            Lines 2.c., 5.b., and 7.a., which was filed with 
            the Federal Deposit Insurance Corporation and 
            other regulatory authorities, for the year 1980, 
            minus
                The average aggregate, determined on a 
            quarterly basis, of such loans (other than loans 
            of an international banking facility), as reported 
            by the financial institution for its branches, 
            agencies and offices within the state, on the 
            corresponding Schedule and lines of the 
            Consolidated Report of Condition for the current 
            taxable year, provided, however, that in no case 
            shall the amount determined in this clause (the 
            subtrahend) exceed the amount determined in the 
            preceding clause (the minuend); and
                (ii) the denominator shall be the average 
            aggregate, determined on a quarterly basis, of the 
            international banking facility's loans to banks in 
            foreign countries, to foreign domiciled borrowers 
            (except where secured primarily by real estate) 
            and to foreign governments and other foreign 
            official institutions, which were recorded in its 
            financial accounts for the current taxable year.
            (C) Change to Consolidated Report of Condition and 
        in Qualification. In the event the Consolidated Report 
        of Condition which is filed with the Federal Deposit 
        Insurance Corporation and other regulatory authorities 
        is altered so that the information required for 
        determining the floor amount is not found on Schedule 
        A, lines 2.c., 5.b. and 7.a., the financial 
        institution shall notify the Department and the 
        Department may, by regulations or otherwise, prescribe 
        or authorize the use of an alternative source for such 
        information. The financial institution shall also 
        notify the Department should its international banking 
        facility fail to qualify as such, in whole or in part, 
        or should there be any amendment or change to the 
        Consolidated Report of Condition, as originally filed, 
        to the extent such amendment or change alters the 
        information used in determining the floor amount.
        (3) For taxable years ending on or after December 31, 
    2008, the business income of a financial organization 
    shall be apportioned to this State by multiplying such 
    income by a fraction, the numerator of which is its gross 
    receipts from sources in this State or otherwise 
    attributable to this State's marketplace and the 
    denominator of which is its gross receipts everywhere 
    during the taxable year. "Gross receipts" for purposes of 
    this subparagraph (3) means gross income, including net 
    taxable gain on disposition of assets, including 
    securities and money market instruments, when derived from 
    transactions and activities in the regular course of the 
    financial organization's trade or business. The following 
    examples are illustrative: 
            (i) Receipts from the lease or rental of real or 
        tangible personal property are in this State if the 
        property is located in this State during the rental 
        period. Receipts from the lease or rental of tangible 
        personal property that is characteristically moving 
        property, including, but not limited to, motor 
        vehicles, rolling stock, aircraft, vessels, or mobile 
        equipment are from sources in this State to the extent 
        that the property is used in this State.
            (ii) Interest income, commissions, fees, gains on 
        disposition, and other receipts from assets in the 
        nature of loans that are secured primarily by real 
        estate or tangible personal property are from sources 
        in this State if the security is located in this State.
            (iii) Interest income, commissions, fees, gains on 
        disposition, and other receipts from consumer loans 
        that are not secured by real or tangible personal 
        property are from sources in this State if the debtor 
        is a resident of this State.
            (iv) Interest income, commissions, fees, gains on 
        disposition, and other receipts from commercial loans 
        and installment obligations that are not secured by 
        real or tangible personal property are from sources in 
        this State if the proceeds of the loan are to be 
        applied in this State. If it cannot be determined 
        where the funds are to be applied, the income and 
        receipts are from sources in this State if the office 
        of the borrower from which the loan was negotiated in 
        the regular course of business is located in this 
        State. If the location of this office cannot be 
        determined, the income and receipts shall be excluded 
        from the numerator and denominator of the sales 
        factor. 
            (v) Interest income, fees, gains on disposition, 
        service charges, merchant discount income, and other 
        receipts from credit card receivables are from sources 
        in this State if the card charges are regularly billed 
        to a customer in this State.
            (vi) Receipts from the performance of services, 
        including, but not limited to, fiduciary, advisory, 
        and brokerage services, are in this State if the 
        services are received in this State within the meaning 
        of subparagraph (a)(3)(C-5)(iv) of this Section.
            (vii) Receipts from the issuance of travelers 
        checks and money orders are from sources in this State 
        if the checks and money orders are issued from a 
        location within this State.
            (viii) For tax years ending before December 31, 
        2024, receipts Receipts from investment assets and 
        activities and trading assets and activities are 
        included in the receipts factor as follows:
                (1) Interest, dividends, net gains (but not 
            less than zero) and other income from investment 
            assets and activities from trading assets and 
            activities shall be included in the receipts 
            factor. Investment assets and activities and 
            trading assets and activities include, but are not 
            limited to: investment securities; trading account 
            assets; federal funds; securities purchased and 
            sold under agreements to resell or repurchase; 
            options; futures contracts; forward contracts; 
            notional principal contracts such as swaps; 
            equities; and foreign currency transactions. With 
            respect to the investment and trading assets and 
            activities described in subparagraphs (A) and (B) 
            of this paragraph, the receipts factor shall 
            include the amounts described in such 
            subparagraphs.
                    (A) The receipts factor shall include the 
                amount by which interest from federal funds 
                sold and securities purchased under resale 
                agreements exceeds interest expense on federal 
                funds purchased and securities sold under 
                repurchase agreements.
                    (B) The receipts factor shall include the 
                amount by which interest, dividends, gains and 
                other income from trading assets and 
                activities, including, but not limited to, 
                assets and activities in the matched book, in 
                the arbitrage book, and foreign currency 
                transactions, exceed amounts paid in lieu of 
                interest, amounts paid in lieu of dividends, 
                and losses from such assets and activities.
                (2) The numerator of the receipts factor 
            includes interest, dividends, net gains (but not 
            less than zero), and other income from investment 
            assets and activities and from trading assets and 
            activities described in paragraph (1) of this 
            subsection that are attributable to this State.
                    (A) The amount of interest, dividends, net 
                gains (but not less than zero), and other 
                income from investment assets and activities 
                in the investment account to be attributed to 
                this State and included in the numerator is 
                determined by multiplying all such income from 
                such assets and activities by a fraction, the 
                numerator of which is the gross income from 
                such assets and activities which are properly 
                assigned to a fixed place of business of the 
                taxpayer within this State and the denominator 
                of which is the gross income from all such 
                assets and activities.
                    (B) The amount of interest from federal 
                funds sold and purchased and from securities 
                purchased under resale agreements and 
                securities sold under repurchase agreements 
                attributable to this State and included in the 
                numerator is determined by multiplying the 
                amount described in subparagraph (A) of 
                paragraph (1) of this subsection from such 
                funds and such securities by a fraction, the 
                numerator of which is the gross income from 
                such funds and such securities which are 
                properly assigned to a fixed place of business 
                of the taxpayer within this State and the 
                denominator of which is the gross income from 
                all such funds and such securities.
                    (C) The amount of interest, dividends, 
                gains, and other income from trading assets 
                and activities, including, but not limited to, 
                assets and activities in the matched book, in 
                the arbitrage book and foreign currency 
                transactions (but excluding amounts described 
                in subparagraphs (A) or (B) of this 
                paragraph), attributable to this State and 
                included in the numerator is determined by 
                multiplying the amount described in 
                subparagraph (B) of paragraph (1) of this 
                subsection by a fraction, the numerator of 
                which is the gross income from such trading 
                assets and activities which are properly 
                assigned to a fixed place of business of the 
                taxpayer within this State and the denominator 
                of which is the gross income from all such 
                assets and activities.
                    (D) Properly assigned, for purposes of 
                this paragraph (2) of this subsection, means 
                the investment or trading asset or activity is 
                assigned to the fixed place of business with 
                which it has a preponderance of substantive 
                contacts. An investment or trading asset or 
                activity assigned by the taxpayer to a fixed 
                place of business without the State shall be 
                presumed to have been properly assigned if:
                        (i) the taxpayer has assigned, in the 
                    regular course of its business, such asset 
                    or activity on its records to a fixed 
                    place of business consistent with federal 
                    or state regulatory requirements;
                        (ii) such assignment on its records is 
                    based upon substantive contacts of the 
                    asset or activity to such fixed place of 
                    business; and
                        (iii) the taxpayer uses such records 
                    reflecting assignment of such assets or 
                    activities for the filing of all state and 
                    local tax returns for which an assignment 
                    of such assets or activities to a fixed 
                    place of business is required.
                    (E) The presumption of proper assignment 
                of an investment or trading asset or activity 
                provided in subparagraph (D) of paragraph (2) 
                of this subsection may be rebutted upon a 
                showing by the Department, supported by a 
                preponderance of the evidence, that the 
                preponderance of substantive contacts 
                regarding such asset or activity did not occur 
                at the fixed place of business to which it was 
                assigned on the taxpayer's records. If the 
                fixed place of business that has a 
                preponderance of substantive contacts cannot 
                be determined for an investment or trading 
                asset or activity to which the presumption in 
                subparagraph (D) of paragraph (2) of this 
                subsection does not apply or with respect to 
                which that presumption has been rebutted, that 
                asset or activity is properly assigned to the 
                state in which the taxpayer's commercial 
                domicile is located. For purposes of this 
                subparagraph (E), it shall be presumed, 
                subject to rebuttal, that taxpayer's 
                commercial domicile is in the state of the 
                United States or the District of Columbia to 
                which the greatest number of employees are 
                regularly connected with the management of the 
                investment or trading income or out of which 
                they are working, irrespective of where the 
                services of such employees are performed, as 
                of the last day of the taxable year. 
            (ix) For tax years ending on or after December 31, 
        2024, receipts from investment assets and activities 
        and trading assets and activities are included in the 
        receipts factor as follows: 
                (1) Interest, dividends, net gains (but not 
            less than zero), and other income from investment 
            assets and activities from trading assets and 
            activities shall be included in the receipts 
            factor. Investment assets and activities and 
            trading assets and activities include, but are not 
            limited to the following: investment securities; 
            trading account assets; federal funds; securities 
            purchased and sold under agreements to resell or 
            repurchase; options; futures contracts; forward 
            contracts; notional principal contracts, such as 
            swaps; equities; and foreign currency 
            transactions. With respect to the investment and 
            trading assets and activities described in 
            subparagraphs (A) and (B) of this paragraph, the 
            receipts factor shall include the amounts 
            described in those subparagraphs. 
                    (A) The receipts factor shall include the 
                amount by which interest from federal funds 
                sold and securities purchased under resale 
                agreements exceeds interest expense on federal 
                funds purchased and securities sold under 
                repurchase agreements. 
                    (B) The receipts factor shall include the 
                amount by which interest, dividends, gains and 
                other income from trading assets and 
                activities, including, but not limited to, 
                assets and activities in the matched book, in 
                the arbitrage book, and foreign currency 
                transactions, exceed amounts paid in lieu of 
                interest, amounts paid in lieu of dividends, 
                and losses from such assets and activities. 
                (2) The numerator of the receipts factor 
            includes interest, dividends, net gains (but not 
            less than zero), and other income from investment 
            assets and activities and from trading assets and 
            activities described in paragraph (1) of this 
            subsection that are attributable to this State. 
                    (A) The amount of interest, dividends, net 
                gains (but not less than zero), and other 
                income from investment assets and activities 
                in the investment account to be attributed to 
                this State and included in the numerator is 
                determined by multiplying all of the income 
                from those assets and activities by a 
                fraction, the numerator of which is the total 
                receipts included in the numerator pursuant to 
                items (i) through (vii) of this subparagraph 
                (3) and the denominator of which is all total 
                receipts included in the denominator, other 
                than interest, dividends, net gains (but not 
                less than zero), and other income from 
                investment assets and activities and trading 
                assets and activities. 
                    (B) The amount of interest from federal 
                funds sold and purchased and from securities 
                purchased under resale agreements and 
                securities sold under repurchase agreements 
                attributable to this State and included in the 
                numerator is determined by multiplying the 
                amount described in subparagraph (A) of 
                paragraph (1) of this subsection from such 
                funds and such securities by a fraction, the 
                numerator of which is the total receipts 
                included in the numerator pursuant to items 
                (i) through (vii) of this subparagraph (3) and 
                the denominator of which is all total receipts 
                included in the denominator, other than 
                interest, dividends, net gains (but not less 
                than zero), and other income from investment 
                assets and activities and trading assets and 
                activities. 
                    (C) The amount of interest, dividends, 
                gains, and other income from trading assets 
                and activities, including, but not limited to, 
                assets and activities in the matched book, in 
                the arbitrage book and foreign currency 
                transactions (but excluding amounts described 
                in subparagraphs (A) or (B) of this 
                paragraph), attributable to this State and 
                included in the numerator is determined by 
                multiplying the amount described in 
                subparagraph (B) of paragraph (1) of this 
                subsection by a fraction, the numerator of 
                which is the total receipts included in the 
                numerator pursuant to items (i) through (vii) 
                of this subparagraph (3) and the denominator 
                of which is all total receipts included in the 
                denominator, other than interest, dividends, 
                net gains (but not less than zero), and other 
                income from investment assets and activities 
                and trading assets and activities. 
        (4) (Blank).
        (5) (Blank).
    (c-1) Federally regulated exchanges. For taxable years 
ending on or after December 31, 2012, business income of a 
federally regulated exchange shall, at the option of the 
federally regulated exchange, be apportioned to this State by 
multiplying such income by a fraction, the numerator of which 
is its business income from sources within this State, and the 
denominator of which is its business income from all sources. 
For purposes of this subsection, the business income within 
this State of a federally regulated exchange is the sum of the 
following: 
        (1) Receipts attributable to transactions executed on 
    a physical trading floor if that physical trading floor is 
    located in this State. 
        (2) Receipts attributable to all other matching, 
    execution, or clearing transactions, including without 
    limitation receipts from the provision of matching, 
    execution, or clearing services to another entity, 
    multiplied by (i) for taxable years ending on or after 
    December 31, 2012 but before December 31, 2013, 63.77%; 
    and (ii) for taxable years ending on or after December 31, 
    2013, 27.54%. 
        (3) All other receipts not governed by subparagraphs 
    (1) or (2) of this subsection (c-1), to the extent the 
    receipts would be characterized as "sales in this State" 
    under item (3) of subsection (a) of this Section. 
    "Federally regulated exchange" means (i) a "registered 
entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B), 
or (C), (ii) an "exchange" or "clearing agency" within the 
meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such 
entities regulated under any successor regulatory structure to 
the foregoing, and (iv) all taxpayers who are members of the 
same unitary business group as a federally regulated exchange, 
determined without regard to the prohibition in Section 
1501(a)(27) of this Act against including in a unitary 
business group taxpayers who are ordinarily required to 
apportion business income under different subsections of this 
Section; provided that this subparagraph (iv) shall apply only 
if 50% or more of the business receipts of the unitary business 
group determined by application of this subparagraph (iv) for 
the taxable year are attributable to the matching, execution, 
or clearing of transactions conducted by an entity described 
in subparagraph (i), (ii), or (iii) of this paragraph. 
    In no event shall the Illinois apportionment percentage 
computed in accordance with this subsection (c-1) for any 
taxpayer for any tax year be less than the Illinois 
apportionment percentage computed under this subsection (c-1) 
for that taxpayer for the first full tax year ending on or 
after December 31, 2013 for which this subsection (c-1) 
applied to the taxpayer. 
    (d) Transportation services. For taxable years ending 
before December 31, 2008, business income derived from 
furnishing transportation services shall be apportioned to 
this State in accordance with paragraphs (1) and (2):
        (1) Such business income (other than that derived from 
    transportation by pipeline) shall be apportioned to this 
    State by multiplying such income by a fraction, the 
    numerator of which is the revenue miles of the person in 
    this State, and the denominator of which is the revenue 
    miles of the person everywhere. For purposes of this 
    paragraph, a revenue mile is the transportation of 1 
    passenger or 1 net ton of freight the distance of 1 mile 
    for a consideration. Where a person is engaged in the 
    transportation of both passengers and freight, the 
    fraction above referred to shall be determined by means of 
    an average of the passenger revenue mile fraction and the 
    freight revenue mile fraction, weighted to reflect the 
    person's
            (A) relative railway operating income from total 
        passenger and total freight service, as reported to 
        the Interstate Commerce Commission, in the case of 
        transportation by railroad, and
            (B) relative gross receipts from passenger and 
        freight transportation, in case of transportation 
        other than by railroad.
        (2) Such business income derived from transportation 
    by pipeline shall be apportioned to this State by 
    multiplying such income by a fraction, the numerator of 
    which is the revenue miles of the person in this State, and 
    the denominator of which is the revenue miles of the 
    person everywhere. For the purposes of this paragraph, a 
    revenue mile is the transportation by pipeline of 1 barrel 
    of oil, 1,000 cubic feet of gas, or of any specified 
    quantity of any other substance, the distance of 1 mile 
    for a consideration.
        (3) For taxable years ending on or after December 31, 
    2008, business income derived from providing 
    transportation services other than airline services shall 
    be apportioned to this State by using a fraction, (a) the 
    numerator of which shall be (i) all receipts from any 
    movement or shipment of people, goods, mail, oil, gas, or 
    any other substance (other than by airline) that both 
    originates and terminates in this State, plus (ii) that 
    portion of the person's gross receipts from movements or 
    shipments of people, goods, mail, oil, gas, or any other 
    substance (other than by airline) that originates in one 
    state or jurisdiction and terminates in another state or 
    jurisdiction, that is determined by the ratio that the 
    miles traveled in this State bears to total miles 
    everywhere and (b) the denominator of which shall be all 
    revenue derived from the movement or shipment of people, 
    goods, mail, oil, gas, or any other substance (other than 
    by airline). Where a taxpayer is engaged in the 
    transportation of both passengers and freight, the 
    fraction above referred to shall first be determined 
    separately for passenger miles and freight miles. Then an 
    average of the passenger miles fraction and the freight 
    miles fraction shall be weighted to reflect the 
    taxpayer's:
            (A) relative railway operating income from total 
        passenger and total freight service, as reported to 
        the Surface Transportation Board, in the case of 
        transportation by railroad; and
            (B) relative gross receipts from passenger and 
        freight transportation, in case of transportation 
        other than by railroad. 
        (4) For taxable years ending on or after December 31, 
    2008, business income derived from furnishing airline 
    transportation services shall be apportioned to this State 
    by multiplying such income by a fraction, the numerator of 
    which is the revenue miles of the person in this State, and 
    the denominator of which is the revenue miles of the 
    person everywhere. For purposes of this paragraph, a 
    revenue mile is the transportation of one passenger or one 
    net ton of freight the distance of one mile for a 
    consideration. If a person is engaged in the 
    transportation of both passengers and freight, the 
    fraction above referred to shall be determined by means of 
    an average of the passenger revenue mile fraction and the 
    freight revenue mile fraction, weighted to reflect the 
    person's relative gross receipts from passenger and 
    freight airline transportation. 
    (e) Combined apportionment. Where 2 or more persons are 
engaged in a unitary business as described in subsection 
(a)(27) of Section 1501, a part of which is conducted in this 
State by one or more members of the group, the business income 
attributable to this State by any such member or members shall 
be apportioned by means of the combined apportionment method.
    (f) Alternative allocation. If the allocation and 
apportionment provisions of subsections (a) through (e) and of 
subsection (h) do not, for taxable years ending before 
December 31, 2008, fairly represent the extent of a person's 
business activity in this State, or, for taxable years ending 
on or after December 31, 2008, fairly represent the market for 
the person's goods, services, or other sources of business 
income, the person may petition for, or the Director may, 
without a petition, permit or require, in respect of all or any 
part of the person's business activity, if reasonable:
        (1) Separate accounting;
        (2) The exclusion of any one or more factors;
        (3) The inclusion of one or more additional factors 
    which will fairly represent the person's business 
    activities or market in this State; or
        (4) The employment of any other method to effectuate 
    an equitable allocation and apportionment of the person's 
    business income.
    (g) Cross reference. For allocation of business income by 
residents, see Section 301(a).
    (h) For tax years ending on or after December 31, 1998, the 
apportionment factor of persons who apportion their business 
income to this State under subsection (a) shall be equal to:
        (1) for tax years ending on or after December 31, 1998 
    and before December 31, 1999, 16 2/3% of the property 
    factor plus 16 2/3% of the payroll factor plus 66 2/3% of 
    the sales factor;
        (2) for tax years ending on or after December 31, 1999 
    and before December 31, 2000, 8 1/3% of the property 
    factor plus 8 1/3% of the payroll factor plus 83 1/3% of 
    the sales factor;
        (3) for tax years ending on or after December 31, 
    2000, the sales factor.
If, in any tax year ending on or after December 31, 1998 and 
before December 31, 2000, the denominator of the payroll, 
property, or sales factor is zero, the apportionment factor 
computed in paragraph (1) or (2) of this subsection for that 
year shall be divided by an amount equal to 100% minus the 
percentage weight given to each factor whose denominator is 
equal to zero.
(Source: P.A. 101-31, eff. 6-28-19; 101-585, eff. 8-26-19; 
102-40, eff. 6-25-21; 102-558, eff. 8-20-21.)
 
ARTICLE 90. 

 
    Section 90-5. The Illinois Income Tax Act is amended by 
changing Sections 218 and 227 as follows:
 
    (35 ILCS 5/218)
    Sec. 218. Credit for student-assistance contributions.
    (a) For taxable years ending on or after December 31, 2009 
and on or before December 31, 2029 2024, each taxpayer who, 
during the taxable year, makes a contribution (i) to a 
specified individual College Savings Pool Account under 
Section 16.5 of the State Treasurer Act or (ii) to the Illinois 
Prepaid Tuition Trust Fund in an amount matching a 
contribution made in the same taxable year by an employee of 
the taxpayer to that Account or Fund is entitled to a credit 
against the tax imposed under subsections (a) and (b) of 
Section 201 in an amount equal to 25% of that matching 
contribution, but not to exceed $500 per contributing employee 
per taxable year.
    (b) For taxable years ending before December 31, 2023, for 
partners, shareholders of Subchapter S corporations, and 
owners of limited liability companies, if the liability 
company is treated as a partnership for purposes of federal 
and State income taxation, there is allowed a credit under 
this Section to be determined in accordance with the 
determination of income and distributive share of income under 
Sections 702 and 704 and Subchapter S of the Internal Revenue 
Code. For taxable years ending on or after December 31, 2023, 
partners and shareholders of subchapter S corporations are 
entitled to a credit under this Section as provided in Section 
251.
    (c) The credit may not be carried back. If the amount of 
the credit exceeds the tax liability for the year, the excess 
may be carried forward and applied to the tax liability of the 
5 taxable years following the excess credit year. The tax 
credit shall be applied to the earliest year for which there is 
a tax liability. If there are credits for more than one year 
that are available to offset a liability, the earlier credit 
shall be applied first. 
    (d) A taxpayer claiming the credit under this Section must 
maintain and record any information that the Illinois Student 
Assistance Commission, the Office of the State Treasurer, or 
the Department may require regarding the matching contribution 
for which the credit is claimed. 
(Source: P.A. 102-289, eff. 8-6-21; 103-396, eff. 1-1-24.)
 
    (35 ILCS 5/227)
    Sec. 227. Adoption credit.
    (a) Beginning with tax years ending on or after December 
31, 2018 and ending with tax years ending on or before December 
31, 2029, in the case of an individual taxpayer there shall be 
allowed a credit against the tax imposed by subsections (a) 
and (b) of Section 201 in an amount equal to the amount of the 
federal adoption tax credit received pursuant to Section 23 of 
the Internal Revenue Code with respect to the adoption of a 
qualifying dependent child, subject to the limitations set 
forth in this subsection and subsection (b). The aggregate 
amount of qualified adoption expenses which may be taken into 
account under this Section for all taxable years with respect 
to the adoption of a qualifying dependent child by the 
taxpayer shall not exceed $2,000 ($1,000 in the case of a 
married individual filing a separate return). The credit under 
this Section shall be allowed: (i) in the case of any expense 
paid or incurred before the taxable year in which such 
adoption becomes final, for the taxable year following the 
taxable year during which such expense is paid or incurred, 
and (ii) in the case of an expense paid or incurred during or 
after the taxable year in which such adoption becomes final, 
for the taxable year in which such expense is paid or incurred. 
No credit shall be allowed under this Section for any expense 
to the extent that funds for such expense are received under 
any federal, State, or local program. For purposes of this 
Section, spouses filing a joint return shall be considered one 
taxpayer.
    For a non-resident or part-year resident, the amount of 
the credit under this Section shall be in proportion to the 
amount of income attributable to this State.
    (b) Increased credit amount for resident children. With 
respect to the adoption of an eligible child who is at least 
one year old and resides in Illinois at the time the expenses 
are paid or incurred, subsection (a) shall be applied by 
substituting $5,000 ($2,500 in the case of a married 
individual filing a separate return) for $2,000.
    (c) In no event shall a credit under this Section reduce 
the taxpayer's liability to less than zero. If the amount of 
the credit exceeds the income tax liability for the applicable 
tax year, the excess may be carried forward and applied to the 
tax liability of the 5 taxable years following the excess 
credit year. The credit shall be applied to the earliest year 
for which there is a tax liability. If there are credits from 
more than one year that are available to offset a liability, 
the earlier credit shall be applied first.
    (d) The term "qualified adoption expenses" shall have the 
same meaning as under Section 23(d) of the Internal Revenue 
Code. 
(Source: P.A. 100-587, eff. 6-4-18; 101-81, eff. 7-12-19.)
 
ARTICLE 95.

 
    Section 95-5. The Property Tax Code is amended by changing 
Section 20-130 as follows:
 
    (35 ILCS 200/20-130)
    Sec. 20-130. Distribution of taxes in counties of less 
than 3,000,000; return of erroneous distribution.
    (a) All distributions of taxes collected and interest 
earned thereon by a county on behalf of taxing districts must 
be made by the county treasurer, in counties with less than 
3,000,000 inhabitants, within 30 days after the due date and 
at 30 days intervals thereafter, unless the amount to be 
distributed is less than $5. The county treasurer shall 
distribute the taxes collected at the next 30-day interval if 
the taxes collected are $5 or more. If the tax collections for 
a taxing district are less than $5 for 3 consecutive 30-day 
intervals, the county treasurer shall automatically distribute 
the taxes collected to the unit of local government on the 
third 30-day interval. All interest earned by a county on 
behalf of taxing districts must be distributed by the county 
treasurer, in counties with less than 3,000,000 inhabitants, 
no later than the last distribution of taxes. The county 
treasurer shall determine the manner in which all 
distributions under this Section are to be made. The manner of 
distribution may include, but is not limited to, check or 
electronic funds transfer.
    (b) Notwithstanding any other law to the contrary, if a 
county makes an erroneous distribution of taxes collected and 
interest earned thereon, upon majority vote of the governing 
board of the taxing district that received the erroneous 
distribution, the taxing district shall return the funds to 
the county treasurer.
(Source: P.A. 91-378, eff. 7-30-99.)
 
ARTICLE 100.

 
    Section 100-5. The Illinois Income Tax Act is amended by 
adding Section 244 as follows:
 
    (35 ILCS 5/244 new)
    Sec. 244. Child tax credit.
    (a) For the taxable years beginning on or after January 1, 
2024, each individual taxpayer who has at least one qualifying 
child who is younger than 12 years of age as of the last day of 
the taxable year is entitled to a credit against the tax 
imposed by subsections (a) and (b) of Section 201. For tax 
years beginning on or after January 1, 2024 and before January 
1, 2025, the credit shall be equal to 20% of the credit allowed 
to the taxpayer under Section 212 of this Act for that taxable 
year. For tax years beginning on or after January 1, 2025, the 
amount of the credit shall be equal to 40% of the credit 
allowed to the taxpayer under Section 212 of this Act for that 
taxable year. 
    (b) If the amount of the credit exceeds the income tax 
liability for the applicable tax year, then the excess credit 
shall be refunded the taxpayer. The amount of the refund under 
this Section shall not be included in the taxpayer's income or 
resources for the purposes of determining eligibility or 
benefit level in any means-tested benefit program administered 
by a governmental entity unless required by federal law. 
    (c) The Department may adopt rules to carry out the 
provisions of this Section. 
    (d) As used in this Section, "qualifying child" has the 
meaning given to that term in Section 152 of the Internal 
Revenue Code. 
    (e) This Section is exempt from the provisions of Section 
250. 
 
ARTICLE 105.

 
    Section 105-5. The Illinois Income Tax Act is amended by 
changing Section 207 as follows:
 
    (35 ILCS 5/207)  (from Ch. 120, par. 2-207)
    Sec. 207. Net Losses. 
    (a) If after applying all of the (i) modifications 
provided for in paragraph (2) of Section 203(b), paragraph (2) 
of Section 203(c) and paragraph (2) of Section 203(d) and (ii) 
the allocation and apportionment provisions of Article 3 of 
this Act and subsection (c) of this Section, the taxpayer's 
net income results in a loss;
        (1) for any taxable year ending prior to December 31, 
    1999, such loss shall be allowed as a carryover or 
    carryback deduction in the manner allowed under Section 
    172 of the Internal Revenue Code;
        (2) for any taxable year ending on or after December 
    31, 1999 and prior to December 31, 2003, such loss shall be 
    allowed as a carryback to each of the 2 taxable years 
    preceding the taxable year of such loss and shall be a net 
    operating loss carryover to each of the 20 taxable years 
    following the taxable year of such loss;
        (3) for any taxable year ending on or after December 
    31, 2003 and prior to December 31, 2021, such loss shall be 
    allowed as a net operating loss carryover to each of the 12 
    taxable years following the taxable year of such loss, 
    except as provided in subsection (d); and
        (4) for any taxable year ending on or after December 
    31, 2021, and for any net loss incurred in a taxable year 
    prior to a taxable year ending on or after December 31, 
    2021 for which the statute of limitation for utilization 
    of such net loss has not expired, such loss shall be 
    allowed as a net operating loss carryover to each of the 20 
    taxable years following the taxable year of such loss, 
    except as provided in subsection (d). 
    (a-5) Election to relinquish carryback and order of 
application of losses.
            (A) For losses incurred in tax years ending prior 
        to December 31, 2003, the taxpayer may elect to 
        relinquish the entire carryback period with respect to 
        such loss. Such election shall be made in the form and 
        manner prescribed by the Department and shall be made 
        by the due date (including extensions of time) for 
        filing the taxpayer's return for the taxable year in 
        which such loss is incurred, and such election, once 
        made, shall be irrevocable.
            (B) The entire amount of such loss shall be 
        carried to the earliest taxable year to which such 
        loss may be carried. The amount of such loss which 
        shall be carried to each of the other taxable years 
        shall be the excess, if any, of the amount of such loss 
        over the sum of the deductions for carryback or 
        carryover of such loss allowable for each of the prior 
        taxable years to which such loss may be carried.
    (b) Any loss determined under subsection (a) of this 
Section must be carried back or carried forward in the same 
manner for purposes of subsections (a) and (b) of Section 201 
of this Act as for purposes of subsections (c) and (d) of 
Section 201 of this Act.
    (c) Notwithstanding any other provision of this Act, for 
each taxable year ending on or after December 31, 2008, for 
purposes of computing the loss for the taxable year under 
subsection (a) of this Section and the deduction taken into 
account for the taxable year for a net operating loss 
carryover under paragraphs (1), (2), and (3) of subsection (a) 
of this Section, the loss and net operating loss carryover 
shall be reduced in an amount equal to the reduction to the net 
operating loss and net operating loss carryover to the taxable 
year, respectively, required under Section 108(b)(2)(A) of the 
Internal Revenue Code, multiplied by a fraction, the numerator 
of which is the amount of discharge of indebtedness income 
that is excluded from gross income for the taxable year (but 
only if the taxable year ends on or after December 31, 2008) 
under Section 108(a) of the Internal Revenue Code and that 
would have been allocated and apportioned to this State under 
Article 3 of this Act but for that exclusion, and the 
denominator of which is the total amount of discharge of 
indebtedness income excluded from gross income under Section 
108(a) of the Internal Revenue Code for the taxable year. The 
reduction required under this subsection (c) shall be made 
after the determination of Illinois net income for the taxable 
year in which the indebtedness is discharged. 
    (d) In the case of a corporation (other than a Subchapter S 
corporation): ,
        (1) no carryover deduction shall be allowed under this 
    Section for any taxable year ending after December 31, 
    2010 and prior to December 31, 2012; , and 
        (2) no carryover deduction shall exceed $100,000 for 
    any taxable year ending on or after December 31, 2012 and 
    prior to December 31, 2014 and for any taxable year ending 
    on or after December 31, 2021 and prior to December 31, 
    2024; and
        (3) no carryover deduction shall exceed $500,000 for 
    any taxable year ending on or after December 31, 2024 and 
    prior to December 31, 2027. 
    For the provided that, for purposes of determining the 
taxable years to which a net loss may be carried under 
subsection (a) of this Section, no taxable year for which a 
deduction is disallowed under this subsection, or for which 
the deduction would exceed $100,000 or $500,000, as 
applicable, if not for this subsection, shall be counted. 
    (e) In the case of a residual interest holder in a real 
estate mortgage investment conduit subject to Section 860E of 
the Internal Revenue Code, the net loss in subsection (a) 
shall be equal to: 
        (1) the amount computed under subsection (a), without 
    regard to this subsection (e), or if that amount is 
    positive, zero; 
        (2) minus an amount equal to the amount computed under 
    subsection (a), without regard to this subsection (e), 
    minus the amount that would be computed under subsection 
    (a) if the taxpayer's federal taxable income were computed 
    without regard to Section 860E of the Internal Revenue 
    Code and without regard to this subsection (e). 
    The modification in this subsection (e) is exempt from the 
provisions of Section 250. 
(Source: P.A. 102-16, eff. 6-17-21; 102-669, eff. 11-16-21.)
 
ARTICLE 110.

 
    Section 110-5. The Use Tax Act is amended by changing 
Section 9 as follows:
 
    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
    Sec. 9. Except as to motor vehicles, watercraft, aircraft, 
and trailers that are required to be registered with an agency 
of this State, each retailer required or authorized to collect 
the tax imposed by this Act shall pay to the Department the 
amount of such tax (except as otherwise provided) at the time 
when he is required to file his return for the period during 
which such tax was collected, less a discount of 2.1% prior to 
January 1, 1990, and 1.75% on and after January 1, 1990, or $5 
per calendar year, whichever is greater, which is allowed to 
reimburse the retailer for expenses incurred in collecting the 
tax, keeping records, preparing and filing returns, remitting 
the tax and supplying data to the Department on request. 
Beginning with returns due on or after January 1, 2025, the 
discount allowed in this Section, the Retailers' Occupation 
Tax Act, the Service Occupation Tax Act, and the Service Use 
Tax Act, including any local tax administered by the 
Department and reported on the same return, shall not exceed 
$1,000 per month in the aggregate for returns other than 
transaction returns filed during the month. When determining 
the discount allowed under this Section, retailers shall 
include the amount of tax that would have been due at the 6.25% 
rate but for the 1.25% rate imposed on sales tax holiday items 
under Public Act 102-700. The discount under this Section is 
not allowed for the 1.25% portion of taxes paid on aviation 
fuel that is subject to the revenue use requirements of 49 
U.S.C. 47107(b) and 49 U.S.C. 47133. When determining the 
discount allowed under this Section, retailers shall include 
the amount of tax that would have been due at the 1% rate but 
for the 0% rate imposed under Public Act 102-700. In the case 
of retailers who report and pay the tax on a transaction by 
transaction basis, as provided in this Section, such discount 
shall be taken with each such tax remittance instead of when 
such retailer files his periodic return, but, beginning with 
returns due on or after January 1, 2025, the discount allowed 
under this Section and the Retailers' Occupation Tax Act, 
including any local tax administered by the Department and 
reported on the same transaction return, shall not exceed 
$1,000 per month for all transaction returns filed during the 
month. The discount allowed under this Section is allowed only 
for returns that are filed in the manner required by this Act. 
The Department may disallow the discount for retailers whose 
certificate of registration is revoked at the time the return 
is filed, but only if the Department's decision to revoke the 
certificate of registration has become final. A retailer need 
not remit that part of any tax collected by him to the extent 
that he is required to remit and does remit the tax imposed by 
the Retailers' Occupation Tax Act, with respect to the sale of 
the same property.
    Where such tangible personal property is sold under a 
conditional sales contract, or under any other form of sale 
wherein the payment of the principal sum, or a part thereof, is 
extended beyond the close of the period for which the return is 
filed, the retailer, in collecting the tax (except as to motor 
vehicles, watercraft, aircraft, and trailers that are required 
to be registered with an agency of this State), 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.
    Except as provided in this Section, on or before the 
twentieth day of each calendar month, such retailer shall file 
a return for the preceding calendar month. Such return shall 
be filed on forms prescribed by the Department and shall 
furnish such information as the Department may reasonably 
require. The return shall include the gross receipts on food 
for human consumption that is to be consumed off the premises 
where it is sold (other than alcoholic beverages, food 
consisting of or infused with adult use cannabis, soft drinks, 
and food that has been prepared for immediate consumption) 
which were received during the preceding calendar month, 
quarter, or year, as appropriate, and upon which tax would 
have been due but for the 0% rate imposed under Public Act 
102-700. The return shall also include the amount of tax that 
would have been due on food for human consumption that is to be 
consumed off the premises where it is sold (other than 
alcoholic beverages, food consisting of or infused with adult 
use cannabis, soft drinks, and food that has been prepared for 
immediate consumption) but for the 0% rate imposed under 
Public Act 102-700.
    On and after January 1, 2018, except for returns required 
to be filed prior to January 1, 2023 for motor vehicles, 
watercraft, aircraft, and trailers that are required to be 
registered with an agency of this State, with respect to 
retailers whose annual gross receipts average $20,000 or more, 
all returns required to be filed pursuant to this Act shall be 
filed electronically. On and after January 1, 2023, with 
respect to retailers whose annual gross receipts average 
$20,000 or more, all returns required to be filed pursuant to 
this Act, including, but not limited to, returns for motor 
vehicles, watercraft, aircraft, and trailers that are required 
to be registered with an agency of this State, shall be filed 
electronically. Retailers who demonstrate that they do not 
have access to the Internet or demonstrate hardship in filing 
electronically may petition the Department to waive the 
electronic filing requirement.
    The Department may require returns to be filed on a 
quarterly basis. If so required, a return for each calendar 
quarter shall be filed on or before the twentieth day of the 
calendar month following the end of such calendar quarter. The 
taxpayer shall also file a return with the Department for each 
of the first two months of each calendar quarter, on or before 
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from 
    which he engages in the business of selling tangible 
    personal property at retail in this State;
        3. The total amount of taxable receipts received by 
    him during the preceding calendar month from sales of 
    tangible personal property by him during such preceding 
    calendar month, including receipts from charge and time 
    sales, but less all deductions allowed by law;
        4. The amount of credit provided in Section 2d of this 
    Act;
        5. The amount of tax due;
        5-5. The signature of the taxpayer; and
        6. Such other reasonable information as the Department 
    may require.
    Each retailer required or authorized to collect the tax 
imposed by this Act on aviation fuel sold at retail in this 
State during the preceding calendar month shall, instead of 
reporting and paying tax on aviation fuel as otherwise 
required by this Section, report and pay such tax on a separate 
aviation fuel tax return. The requirements related to the 
return shall be as otherwise provided in this Section. 
Notwithstanding any other provisions of this Act to the 
contrary, retailers collecting tax on aviation fuel shall file 
all aviation fuel tax returns and shall make all aviation fuel 
tax payments by electronic means in the manner and form 
required by the Department. For purposes of this Section, 
"aviation fuel" means jet fuel and aviation gasoline. 
    If a taxpayer fails to sign a return within 30 days after 
the proper notice and demand for signature by the Department, 
the return shall be considered valid and any amount shown to be 
due on the return shall be deemed assessed.
    Notwithstanding any other provision of this Act to the 
contrary, retailers subject to tax on cannabis shall file all 
cannabis tax returns and shall make all cannabis tax payments 
by electronic means in the manner and form required by the 
Department.
    Beginning October 1, 1993, a taxpayer who has an average 
monthly tax liability of $150,000 or more shall make all 
payments required by rules of the Department by electronic 
funds transfer. Beginning October 1, 1994, a taxpayer who has 
an average monthly tax liability of $100,000 or more shall 
make all payments required by rules of the Department by 
electronic funds transfer. Beginning October 1, 1995, a 
taxpayer who has an average monthly tax liability of $50,000 
or more shall make all payments required by rules of the 
Department by electronic funds transfer. Beginning October 1, 
2000, a taxpayer who has an annual tax liability of $200,000 or 
more shall make all payments required by rules of the 
Department by electronic funds transfer. The term "annual tax 
liability" shall be the sum of the taxpayer's liabilities 
under this Act, and under all other State and local occupation 
and use tax laws administered by the Department, for the 
immediately preceding calendar year. The term "average monthly 
tax liability" means the sum of the taxpayer's liabilities 
under this Act, and under all other State and local occupation 
and use tax laws administered by the Department, for the 
immediately preceding calendar year divided by 12. Beginning 
on October 1, 2002, a taxpayer who has a tax liability in the 
amount set forth in subsection (b) of Section 2505-210 of the 
Department of Revenue Law shall make all payments required by 
rules of the Department by electronic funds transfer.
    Before August 1 of each year beginning in 1993, the 
Department shall notify all taxpayers required to make 
payments by electronic funds transfer. All taxpayers required 
to make payments by electronic funds transfer shall make those 
payments for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic 
funds transfer may make payments by electronic funds transfer 
with the permission of the Department.
    All taxpayers required to make payment by electronic funds 
transfer and any taxpayers authorized to voluntarily make 
payments by electronic funds transfer shall make those 
payments in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to 
effectuate a program of electronic funds transfer and the 
requirements of this Section.
    Before October 1, 2000, if the taxpayer's average monthly 
tax liability to the Department under this Act, the Retailers' 
Occupation Tax Act, the Service Occupation Tax Act, the 
Service Use Tax Act was $10,000 or more during the preceding 4 
complete calendar quarters, he shall file a return with the 
Department each month by the 20th day of the month next 
following the month during which such tax liability is 
incurred and shall make payments to the Department on or 
before the 7th, 15th, 22nd and last day of the month during 
which such liability is incurred. On and after October 1, 
2000, if the taxpayer's average monthly tax liability to the 
Department under this Act, the Retailers' Occupation Tax Act, 
the Service Occupation Tax Act, and the Service Use Tax Act was 
$20,000 or more during the preceding 4 complete calendar 
quarters, he shall file a return with the Department each 
month by the 20th day of the month next following the month 
during which such tax liability is incurred and shall make 
payment to the Department on or before the 7th, 15th, 22nd and 
last day of the month during which such liability is incurred. 
If the month during which such tax liability is incurred began 
prior to January 1, 1985, each payment shall be in an amount 
equal to 1/4 of the taxpayer's actual liability for the month 
or an amount set by the Department not to exceed 1/4 of the 
average monthly liability of the taxpayer to the Department 
for the preceding 4 complete calendar quarters (excluding the 
month of highest liability and the month of lowest liability 
in such 4 quarter period). If the month during which such tax 
liability is incurred begins on or after January 1, 1985, and 
prior to January 1, 1987, each payment shall be in an amount 
equal to 22.5% of the taxpayer's actual liability for the 
month or 27.5% of the taxpayer's liability for the same 
calendar month of the preceding year. If the month during 
which such tax liability is incurred begins on or after 
January 1, 1987, and prior to January 1, 1988, each payment 
shall be in an amount equal to 22.5% of the taxpayer's actual 
liability for the month or 26.25% of the taxpayer's liability 
for the same calendar month of the preceding year. If the month 
during which such tax liability is incurred begins on or after 
January 1, 1988, and prior to January 1, 1989, or begins on or 
after January 1, 1996, each payment shall be in an amount equal 
to 22.5% of the taxpayer's actual liability for the month or 
25% of the taxpayer's liability for the same calendar month of 
the preceding year. If the month during which such tax 
liability is incurred begins on or after January 1, 1989, and 
prior to January 1, 1996, each payment shall be in an amount 
equal to 22.5% of the taxpayer's actual liability for the 
month or 25% of the taxpayer's liability for the same calendar 
month of the preceding year or 100% of the taxpayer's actual 
liability for the quarter monthly reporting period. The amount 
of such quarter monthly payments shall be credited against the 
final tax liability of the taxpayer's return for that month. 
Before October 1, 2000, once applicable, the requirement of 
the making of quarter monthly payments to the Department shall 
continue until such taxpayer's average monthly liability to 
the Department during the preceding 4 complete calendar 
quarters (excluding the month of highest liability and the 
month of lowest liability) is less than $9,000, or until such 
taxpayer's average monthly liability to the Department as 
computed for each calendar quarter of the 4 preceding complete 
calendar quarter period is less than $10,000. However, if a 
taxpayer can show the Department that a substantial change in 
the taxpayer's business has occurred which causes the taxpayer 
to anticipate that his average monthly tax liability for the 
reasonably foreseeable future will fall below the $10,000 
threshold stated above, then such taxpayer may petition the 
Department for change in such taxpayer's reporting status. On 
and after October 1, 2000, once applicable, the requirement of 
the making of quarter monthly payments to the Department shall 
continue until such taxpayer's average monthly liability to 
the Department during the preceding 4 complete calendar 
quarters (excluding the month of highest liability and the 
month of lowest liability) is less than $19,000 or until such 
taxpayer's average monthly liability to the Department as 
computed for each calendar quarter of the 4 preceding complete 
calendar quarter period is less than $20,000. However, if a 
taxpayer can show the Department that a substantial change in 
the taxpayer's business has occurred which causes the taxpayer 
to anticipate that his average monthly tax liability for the 
reasonably foreseeable future will fall below the $20,000 
threshold stated above, then such taxpayer may petition the 
Department for a change in such taxpayer's reporting status. 
The Department shall change such taxpayer's reporting status 
unless it finds that such change is seasonal in nature and not 
likely to be long term. Quarter monthly payment status shall 
be determined under this paragraph as if the rate reduction to 
1.25% in Public Act 102-700 on sales tax holiday items had not 
occurred. For quarter monthly payments due on or after July 1, 
2023 and through June 30, 2024, "25% of the taxpayer's 
liability for the same calendar month of the preceding year" 
shall be determined as if the rate reduction to 1.25% in Public 
Act 102-700 on sales tax holiday items had not occurred. 
Quarter monthly payment status shall be determined under this 
paragraph as if the rate reduction to 0% in Public Act 102-700 
on food for human consumption that is to be consumed off the 
premises where it is sold (other than alcoholic beverages, 
food consisting of or infused with adult use cannabis, soft 
drinks, and food that has been prepared for immediate 
consumption) had not occurred. For quarter monthly payments 
due under this paragraph on or after July 1, 2023 and through 
June 30, 2024, "25% of the taxpayer's liability for the same 
calendar month of the preceding year" shall be determined as 
if the rate reduction to 0% in Public Act 102-700 had not 
occurred. If any such quarter monthly payment is not paid at 
the time or in the amount required by this Section, then the 
taxpayer shall be liable for penalties and interest on the 
difference between the minimum amount due and the amount of 
such quarter monthly payment actually and timely paid, except 
insofar as the taxpayer has previously made payments for that 
month to the Department in excess of the minimum payments 
previously due as provided in this Section. The Department 
shall make reasonable rules and regulations to govern the 
quarter monthly payment amount and quarter monthly payment 
dates for taxpayers who file on other than a calendar monthly 
basis.
    If any such payment provided for in this Section exceeds 
the taxpayer's liabilities under this Act, the Retailers' 
Occupation Tax Act, the Service Occupation Tax Act and the 
Service Use Tax Act, as shown by an original monthly return, 
the Department shall issue to the taxpayer a credit memorandum 
no later than 30 days after the date of payment, which 
memorandum may be submitted by the taxpayer to the Department 
in payment of tax liability subsequently to be remitted by the 
taxpayer to the Department or be assigned by the taxpayer to a 
similar taxpayer under this Act, the Retailers' Occupation Tax 
Act, the Service Occupation Tax Act or the Service Use Tax Act, 
in accordance with reasonable rules and regulations to be 
prescribed by the Department, except that if such excess 
payment is shown on an original monthly return and is made 
after December 31, 1986, no credit memorandum shall be issued, 
unless requested by the taxpayer. If no such request is made, 
the taxpayer may credit such excess payment against tax 
liability subsequently to be remitted by the taxpayer to the 
Department under this Act, the Retailers' Occupation Tax Act, 
the Service Occupation Tax Act or the Service Use Tax Act, in 
accordance with reasonable rules and regulations prescribed by 
the Department. If the Department subsequently determines that 
all or any part of the credit taken was not actually due to the 
taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall 
be reduced, if necessary, to reflect by 2.1% or 1.75% of the 
difference between the credit taken and that actually due, and 
the taxpayer shall be liable for penalties and interest on 
such difference.
    If the retailer is otherwise required to file a monthly 
return and if the retailer's average monthly tax liability to 
the Department does not exceed $200, the Department may 
authorize his returns to be filed on a quarter annual basis, 
with the return for January, February, and March of a given 
year being due by April 20 of such year; with the return for 
April, May and June of a given year being due by July 20 of 
such year; with the return for July, August and September of a 
given year being due by October 20 of such year, and with the 
return for October, November and December of a given year 
being due by January 20 of the following year.
    If the retailer is otherwise required to file a monthly or 
quarterly return and if the retailer's average monthly tax 
liability to the Department does not exceed $50, the 
Department may authorize his returns to be filed on an annual 
basis, with the return for a given year being due by January 20 
of the following year.
    Such quarter annual and annual returns, as to form and 
substance, shall be subject to the same requirements as 
monthly returns.
    Notwithstanding any other provision in this Act concerning 
the time within which a retailer may file his return, in the 
case of any retailer who ceases to engage in a kind of business 
which makes him responsible for filing returns under this Act, 
such retailer shall file a final return under this Act with the 
Department not more than one month after discontinuing such 
business.
    In addition, with respect to motor vehicles, watercraft, 
aircraft, and trailers that are required to be registered with 
an agency of this State, except as otherwise provided in this 
Section, every retailer selling this kind of tangible personal 
property shall file, with the Department, upon a form to be 
prescribed and supplied by the Department, a separate return 
for each such item of tangible personal property which the 
retailer sells, except that if, in the same transaction, (i) a 
retailer of aircraft, watercraft, motor vehicles or trailers 
transfers more than one aircraft, watercraft, motor vehicle or 
trailer to another aircraft, watercraft, motor vehicle or 
trailer retailer for the purpose of resale or (ii) a retailer 
of aircraft, watercraft, motor vehicles, or trailers transfers 
more than one aircraft, watercraft, motor vehicle, or trailer 
to a purchaser for use as a qualifying rolling stock as 
provided in Section 3-55 of this Act, then that seller may 
report the transfer of all the aircraft, watercraft, motor 
vehicles or trailers involved in that transaction to the 
Department on the same uniform invoice-transaction reporting 
return form. For purposes of this Section, "watercraft" means 
a Class 2, Class 3, or Class 4 watercraft as defined in Section 
3-2 of the Boat Registration and Safety Act, a personal 
watercraft, or any boat equipped with an inboard motor.
    In addition, with respect to motor vehicles, watercraft, 
aircraft, and trailers that are required to be registered with 
an agency of this State, every person who is engaged in the 
business of leasing or renting such items and who, in 
connection with such business, sells any such item to a 
retailer for the purpose of resale is, notwithstanding any 
other provision of this Section to the contrary, authorized to 
meet the return-filing requirement of this Act by reporting 
the transfer of all the aircraft, watercraft, motor vehicles, 
or trailers transferred for resale during a month to the 
Department on the same uniform invoice-transaction reporting 
return form on or before the 20th of the month following the 
month in which the transfer takes place. Notwithstanding any 
other provision of this Act to the contrary, all returns filed 
under this paragraph must be filed by electronic means in the 
manner and form as required by the Department. 
    The transaction reporting return in the case of motor 
vehicles or trailers that are required to be registered with 
an agency of this State, shall be the same document as the 
Uniform Invoice referred to in Section 5-402 of the Illinois 
Vehicle Code and must show the name and address of the seller; 
the name and address of the purchaser; the amount of the 
selling price including the amount allowed by the retailer for 
traded-in property, if any; the amount allowed by the retailer 
for the traded-in tangible personal property, if any, to the 
extent to which Section 2 of this Act allows an exemption for 
the value of traded-in property; the balance payable after 
deducting such trade-in allowance from the total selling 
price; the amount of tax due from the retailer with respect to 
such transaction; the amount of tax collected from the 
purchaser by the retailer on such transaction (or satisfactory 
evidence that such tax is not due in that particular instance, 
if that is claimed to be the fact); the place and date of the 
sale; a sufficient identification of the property sold; such 
other information as is required in Section 5-402 of the 
Illinois Vehicle Code, and such other information as the 
Department may reasonably require.
    The transaction reporting return in the case of watercraft 
and aircraft must show the name and address of the seller; the 
name and address of the purchaser; the amount of the selling 
price including the amount allowed by the retailer for 
traded-in property, if any; the amount allowed by the retailer 
for the traded-in tangible personal property, if any, to the 
extent to which Section 2 of this Act allows an exemption for 
the value of traded-in property; the balance payable after 
deducting such trade-in allowance from the total selling 
price; the amount of tax due from the retailer with respect to 
such transaction; the amount of tax collected from the 
purchaser by the retailer on such transaction (or satisfactory 
evidence that such tax is not due in that particular instance, 
if that is claimed to be the fact); the place and date of the 
sale, a sufficient identification of the property sold, and 
such other information as the Department may reasonably 
require.
    Such transaction reporting return shall be filed not later 
than 20 days after the date of delivery of the item that is 
being sold, but may be filed by the retailer at any time sooner 
than that if he chooses to do so. The transaction reporting 
return and tax remittance or proof of exemption from the tax 
that is imposed by this Act may be transmitted to the 
Department by way of the State agency with which, or State 
officer with whom, the tangible personal property must be 
titled or registered (if titling or registration is required) 
if the Department and such agency or State officer determine 
that this procedure will expedite the processing of 
applications for title or registration.
    With each such transaction reporting return, the retailer 
shall remit the proper amount of tax due (or shall submit 
satisfactory evidence that the sale is not taxable if that is 
the case), to the Department or its agents, whereupon the 
Department shall issue, in the purchaser's name, a tax receipt 
(or a certificate of exemption if the Department is satisfied 
that the particular sale is tax exempt) which such purchaser 
may submit to the agency with which, or State officer with 
whom, he must title or register the tangible personal property 
that is involved (if titling or registration is required) in 
support of such purchaser's application for an Illinois 
certificate or other evidence of title or registration to such 
tangible personal property.
    No retailer's failure or refusal to remit tax under this 
Act precludes a user, who has paid the proper tax to the 
retailer, from obtaining his certificate of title or other 
evidence of title or registration (if titling or registration 
is required) upon satisfying the Department that such user has 
paid the proper tax (if tax is due) to the retailer. The 
Department shall adopt appropriate rules to carry out the 
mandate of this paragraph.
    If the user who would otherwise pay tax to the retailer 
wants the transaction reporting return filed and the payment 
of tax or proof of exemption made to the Department before the 
retailer is willing to take these actions and such user has not 
paid the tax to the retailer, such user may certify to the fact 
of such delay by the retailer, and may (upon the Department 
being satisfied of the truth of such certification) transmit 
the information required by the transaction reporting return 
and the remittance for tax or proof of exemption directly to 
the Department and obtain his tax receipt or exemption 
determination, in which event the transaction reporting return 
and tax remittance (if a tax payment was required) shall be 
credited by the Department to the proper retailer's account 
with the Department, but without the vendor's 2.1% or 1.75% 
discount provided for in this Section being allowed. When the 
user pays the tax directly to the Department, he shall pay the 
tax in the same amount and in the same form in which it would 
be remitted if the tax had been remitted to the Department by 
the retailer.
    Where a retailer collects the tax with respect to the 
selling price of tangible personal property which he sells and 
the purchaser thereafter returns such tangible personal 
property and the retailer refunds the selling price thereof to 
the purchaser, such retailer shall also refund, to the 
purchaser, the tax so collected from the purchaser. When 
filing his return for the period in which he refunds such tax 
to the purchaser, the retailer may deduct the amount of the tax 
so refunded by him to the purchaser from any other use tax 
which such retailer may be required to pay or remit to the 
Department, as shown by such return, if the amount of the tax 
to be deducted was previously remitted to the Department by 
such retailer. If the retailer has not previously remitted the 
amount of such tax to the Department, he is entitled to no 
deduction under this Act upon refunding such tax to the 
purchaser.
    Any retailer filing a return under this Section shall also 
include (for the purpose of paying tax thereon) the total tax 
covered by such return upon the selling price of tangible 
personal property purchased by him at retail from a retailer, 
but as to which the tax imposed by this Act was not collected 
from the retailer filing such return, and such retailer shall 
remit the amount of such tax to the Department when filing such 
return.
    If experience indicates such action to be practicable, the 
Department may prescribe and furnish a combination or joint 
return which will enable retailers, who are required to file 
returns hereunder and also under the Retailers' Occupation Tax 
Act, to furnish all the return information required by both 
Acts on the one form.
    Where the retailer has more than one business registered 
with the Department under separate registration under this 
Act, such retailer may not file each return that is due as a 
single return covering all such registered businesses, but 
shall file separate returns for each such registered business.
    Beginning January 1, 1990, each month the Department shall 
pay into the State and Local Sales Tax Reform Fund, a special 
fund in the State Treasury which is hereby created, the net 
revenue realized for the preceding month from the 1% tax 
imposed under this Act.
    Beginning January 1, 1990, each month the Department shall 
pay into the County and Mass Transit District Fund 4% of the 
net revenue realized for the preceding month from the 6.25% 
general rate on the selling price of tangible personal 
property which is purchased outside Illinois at retail from a 
retailer and which is titled or registered by an agency of this 
State's government.
    Beginning January 1, 1990, each month the Department shall 
pay into the State and Local Sales Tax Reform Fund, a special 
fund in the State Treasury, 20% of the net revenue realized for 
the preceding month from the 6.25% general rate on the selling 
price of tangible personal property, other than (i) tangible 
personal property which is purchased outside Illinois at 
retail from a retailer and which is titled or registered by an 
agency of this State's government and (ii) aviation fuel sold 
on or after December 1, 2019. This exception for aviation fuel 
only applies for so long as the revenue use requirements of 49 
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
    For aviation fuel sold on or after December 1, 2019, each 
month the Department shall pay into the State Aviation Program 
Fund 20% of the net revenue realized for the preceding month 
from the 6.25% general rate on the selling price of aviation 
fuel, less an amount estimated by the Department to be 
required for refunds of the 20% portion of the tax on aviation 
fuel under this Act, which amount shall be deposited into the 
Aviation Fuel Sales Tax Refund Fund. The Department shall only 
pay moneys into the State Aviation Program Fund and the 
Aviation Fuels Sales Tax Refund Fund under this Act for so long 
as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133 are binding on the State. 
    Beginning August 1, 2000, each month the Department shall 
pay into the State and Local Sales Tax Reform Fund 100% of the 
net revenue realized for the preceding month from the 1.25% 
rate on the selling price of motor fuel and gasohol. If, in any 
month, the tax on sales tax holiday items, as defined in 
Section 3-6, is imposed at the rate of 1.25%, then the 
Department shall pay 100% of the net revenue realized for that 
month from the 1.25% rate on the selling price of sales tax 
holiday items into the State and Local Sales Tax Reform Fund.
    Beginning January 1, 1990, each month the Department shall 
pay into the Local Government Tax Fund 16% of the net revenue 
realized for the preceding month from the 6.25% general rate 
on the selling price of tangible personal property which is 
purchased outside Illinois at retail from a retailer and which 
is titled or registered by an agency of this State's 
government.
    Beginning October 1, 2009, each month the Department shall 
pay into the Capital Projects Fund an amount that is equal to 
an amount estimated by the Department to represent 80% of the 
net revenue realized for the preceding month from the sale of 
candy, grooming and hygiene products, and soft drinks that had 
been taxed at a rate of 1% prior to September 1, 2009 but that 
are now taxed at 6.25%. 
    Beginning July 1, 2011, each month the Department shall 
pay into the Clean Air Act Permit Fund 80% of the net revenue 
realized for the preceding month from the 6.25% general rate 
on the selling price of sorbents used in Illinois in the 
process of sorbent injection as used to comply with the 
Environmental Protection Act or the federal Clean Air Act, but 
the total payment into the Clean Air Act Permit Fund under this 
Act and the Retailers' Occupation Tax Act shall not exceed 
$2,000,000 in any fiscal year. 
    Beginning July 1, 2013, each month the Department shall 
pay into the Underground Storage Tank Fund from the proceeds 
collected under this Act, the Service Use Tax Act, the Service 
Occupation Tax Act, and the Retailers' Occupation Tax Act an 
amount equal to the average monthly deficit in the Underground 
Storage Tank Fund during the prior year, as certified annually 
by the Illinois Environmental Protection Agency, but the total 
payment into the Underground Storage Tank Fund under this Act, 
the Service Use Tax Act, the Service Occupation Tax Act, and 
the Retailers' Occupation Tax Act shall not exceed $18,000,000 
in any State fiscal year. As used in this paragraph, the 
"average monthly deficit" shall be equal to the difference 
between the average monthly claims for payment by the fund and 
the average monthly revenues deposited into the fund, 
excluding payments made pursuant to this paragraph. 
    Beginning July 1, 2015, of the remainder of the moneys 
received by the Department under this Act, the Service Use Tax 
Act, the Service Occupation Tax Act, and the Retailers' 
Occupation Tax Act, each month the Department shall deposit 
$500,000 into the State Crime Laboratory Fund. 
    Of the remainder of the moneys received by the Department 
pursuant to this Act, (a) 1.75% thereof shall be paid into the 
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 
and after July 1, 1989, 3.8% thereof shall be paid into the 
Build Illinois Fund; provided, however, that if in any fiscal 
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case 
may be, of the moneys received by the Department and required 
to be paid into the Build Illinois Fund pursuant to Section 3 
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax 
Act, Section 9 of the Service Use Tax Act, and Section 9 of the 
Service Occupation Tax Act, such Acts being hereinafter called 
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case 
may be, of moneys being hereinafter called the "Tax Act 
Amount", and (2) the amount transferred to the Build Illinois 
Fund from the State and Local Sales Tax Reform Fund shall be 
less than the Annual Specified Amount (as defined in Section 3 
of the Retailers' Occupation Tax Act), an amount equal to the 
difference shall be immediately paid into the Build Illinois 
Fund from other moneys received by the Department pursuant to 
the Tax Acts; and further provided, that if on the last 
business day of any month the sum of (1) the Tax Act Amount 
required to be deposited into the Build Illinois Bond Account 
in the Build Illinois Fund during such month and (2) the amount 
transferred during such month to the Build Illinois Fund from 
the State and Local Sales Tax Reform Fund shall have been less 
than 1/12 of the Annual Specified Amount, an amount equal to 
the difference shall be immediately paid into the Build 
Illinois Fund from other moneys received by the Department 
pursuant to the Tax Acts; and, further provided, that in no 
event shall the payments required under the preceding proviso 
result in aggregate payments into the Build Illinois Fund 
pursuant to this clause (b) for any fiscal year in excess of 
the greater of (i) the Tax Act Amount or (ii) the Annual 
Specified Amount for such fiscal year; and, further provided, 
that the amounts payable into the Build Illinois Fund under 
this clause (b) shall be payable only until such time as the 
aggregate amount on deposit under each trust indenture 
securing Bonds issued and outstanding pursuant to the Build 
Illinois Bond Act is sufficient, taking into account any 
future investment income, to fully provide, in accordance with 
such indenture, for the defeasance of or the payment of the 
principal of, premium, if any, and interest on the Bonds 
secured by such indenture and on any Bonds expected to be 
issued thereafter and all fees and costs payable with respect 
thereto, all as certified by the Director of the Bureau of the 
Budget (now Governor's Office of Management and Budget). If on 
the last business day of any month in which Bonds are 
outstanding pursuant to the Build Illinois Bond Act, the 
aggregate of the moneys deposited in the Build Illinois Bond 
Account in the Build Illinois Fund in such month shall be less 
than the amount required to be transferred in such month from 
the Build Illinois Bond Account to the Build Illinois Bond 
Retirement and Interest Fund pursuant to Section 13 of the 
Build Illinois Bond Act, an amount equal to such deficiency 
shall be immediately paid from other moneys received by the 
Department pursuant to the Tax Acts to the Build Illinois 
Fund; provided, however, that any amounts paid to the Build 
Illinois Fund in any fiscal year pursuant to this sentence 
shall be deemed to constitute payments pursuant to clause (b) 
of the preceding sentence and shall reduce the amount 
otherwise payable for such fiscal year pursuant to clause (b) 
of the preceding sentence. The moneys received by the 
Department pursuant to this Act and required to be deposited 
into the Build Illinois Fund are subject to the pledge, claim 
and charge set forth in Section 12 of the Build Illinois Bond 
Act.
    Subject to payment of amounts into the Build Illinois Fund 
as provided in the preceding paragraph or in any amendment 
thereto hereafter enacted, the following specified monthly 
installment of the amount requested in the certificate of the 
Chairman of the Metropolitan Pier and Exposition Authority 
provided under Section 8.25f of the State Finance Act, but not 
in excess of the sums designated as "Total Deposit", shall be 
deposited in the aggregate from collections under Section 9 of 
the Use Tax Act, Section 9 of the Service Use Tax Act, Section 
9 of the Service Occupation Tax Act, and Section 3 of the 
Retailers' Occupation Tax Act into the McCormick Place 
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021300,000,000
2022300,000,000
2023300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000 
       
2034375,000,000
2035375,000,000
2036450,000,000
and  
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal 
year thereafter, one-eighth of the amount requested in the 
certificate of the Chairman of the Metropolitan Pier and 
Exposition Authority for that fiscal year, less the amount 
deposited into the McCormick Place Expansion Project Fund by 
the State Treasurer in the respective month under subsection 
(g) of Section 13 of the Metropolitan Pier and Exposition 
Authority Act, plus cumulative deficiencies in the deposits 
required under this Section for previous months and years, 
shall be deposited into the McCormick Place Expansion Project 
Fund, until the full amount requested for the fiscal year, but 
not in excess of the amount specified above as "Total 
Deposit", has been deposited.
    Subject to payment of amounts into the Capital Projects 
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, 
and the McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs or in any amendments thereto hereafter 
enacted, for aviation fuel sold on or after December 1, 2019, 
the Department shall each month deposit into the Aviation Fuel 
Sales Tax Refund Fund an amount estimated by the Department to 
be required for refunds of the 80% portion of the tax on 
aviation fuel under this Act. The Department shall only 
deposit moneys into the Aviation Fuel Sales Tax Refund Fund 
under this paragraph for so long as the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
binding on the State. 
    Subject to payment of amounts into the Build Illinois Fund 
and the McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs or in any amendments thereto hereafter 
enacted, beginning July 1, 1993 and ending on September 30, 
2013, the Department shall each month pay into the Illinois 
Tax Increment Fund 0.27% of 80% of the net revenue realized for 
the preceding month from the 6.25% general rate on the selling 
price of tangible personal property.
    Subject to payment of amounts into the Build Illinois 
Fund, the McCormick Place Expansion Project Fund, the Illinois 
Tax Increment Fund, and the Energy Infrastructure Fund 
pursuant to the preceding paragraphs or in any amendments to 
this Section hereafter enacted, beginning on the first day of 
the first calendar month to occur on or after August 26, 2014 
(the effective date of Public Act 98-1098), each month, from 
the collections made under Section 9 of the Use Tax Act, 
Section 9 of the Service Use Tax Act, Section 9 of the Service 
Occupation Tax Act, and Section 3 of the Retailers' Occupation 
Tax Act, the Department shall pay into the Tax Compliance and 
Administration Fund, to be used, subject to appropriation, to 
fund additional auditors and compliance personnel at the 
Department of Revenue, an amount equal to 1/12 of 5% of 80% of 
the cash receipts collected during the preceding fiscal year 
by the Audit Bureau of the Department under the Use Tax Act, 
the Service Use Tax Act, the Service Occupation Tax Act, the 
Retailers' Occupation Tax Act, and associated local occupation 
and use taxes administered by the Department. 
    Subject to payments of amounts into the Build Illinois 
Fund, the McCormick Place Expansion Project Fund, the Illinois 
Tax Increment Fund, and the Tax Compliance and Administration 
Fund as provided in this Section, beginning on July 1, 2018 the 
Department shall pay each month into the Downstate Public 
Transportation Fund the moneys required to be so paid under 
Section 2-3 of the Downstate Public Transportation Act.
    Subject to successful execution and delivery of a 
public-private agreement between the public agency and private 
entity and completion of the civic build, beginning on July 1, 
2023, of the remainder of the moneys received by the 
Department under the Use Tax Act, the Service Use Tax Act, the 
Service Occupation Tax Act, and this Act, the Department shall 
deposit the following specified deposits in the aggregate from 
collections under the Use Tax Act, the Service Use Tax Act, the 
Service Occupation Tax Act, and the Retailers' Occupation Tax 
Act, as required under Section 8.25g of the State Finance Act 
for distribution consistent with the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
The moneys received by the Department pursuant to this Act and 
required to be deposited into the Civic and Transit 
Infrastructure Fund are subject to the pledge, claim, and 
charge set forth in Section 25-55 of the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
As used in this paragraph, "civic build", "private entity", 
"public-private agreement", and "public agency" have the 
meanings provided in Section 25-10 of the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
        Fiscal Year............................Total Deposit 
        2024....................................$200,000,000 
        2025....................................$206,000,000 
        2026....................................$212,200,000 
        2027....................................$218,500,000 
        2028....................................$225,100,000 
        2029....................................$288,700,000 
        2030....................................$298,900,000 
        2031....................................$309,300,000 
        2032....................................$320,100,000 
        2033....................................$331,200,000 
        2034....................................$341,200,000 
        2035....................................$351,400,000 
        2036....................................$361,900,000 
        2037....................................$372,800,000 
        2038....................................$384,000,000 
        2039....................................$395,500,000 
        2040....................................$407,400,000 
        2041....................................$419,600,000 
        2042....................................$432,200,000 
        2043....................................$445,100,000 
    Beginning July 1, 2021 and until July 1, 2022, subject to 
the payment of amounts into the State and Local Sales Tax 
Reform Fund, the Build Illinois Fund, the McCormick Place 
Expansion Project Fund, the Illinois Tax Increment Fund, and 
the Tax Compliance and Administration Fund as provided in this 
Section, the Department shall pay each month into the Road 
Fund the amount estimated to represent 16% of the net revenue 
realized from the taxes imposed on motor fuel and gasohol. 
Beginning July 1, 2022 and until July 1, 2023, subject to the 
payment of amounts into the State and Local Sales Tax Reform 
Fund, the Build Illinois Fund, the McCormick Place Expansion 
Project Fund, the Illinois Tax Increment Fund, and the Tax 
Compliance and Administration Fund as provided in this 
Section, the Department shall pay each month into the Road 
Fund the amount estimated to represent 32% of the net revenue 
realized from the taxes imposed on motor fuel and gasohol. 
Beginning July 1, 2023 and until July 1, 2024, subject to the 
payment of amounts into the State and Local Sales Tax Reform 
Fund, the Build Illinois Fund, the McCormick Place Expansion 
Project Fund, the Illinois Tax Increment Fund, and the Tax 
Compliance and Administration Fund as provided in this 
Section, the Department shall pay each month into the Road 
Fund the amount estimated to represent 48% of the net revenue 
realized from the taxes imposed on motor fuel and gasohol. 
Beginning July 1, 2024 and until July 1, 2025, subject to the 
payment of amounts into the State and Local Sales Tax Reform 
Fund, the Build Illinois Fund, the McCormick Place Expansion 
Project Fund, the Illinois Tax Increment Fund, and the Tax 
Compliance and Administration Fund as provided in this 
Section, the Department shall pay each month into the Road 
Fund the amount estimated to represent 64% of the net revenue 
realized from the taxes imposed on motor fuel and gasohol. 
Beginning on July 1, 2025, subject to the payment of amounts 
into the State and Local Sales Tax Reform Fund, the Build 
Illinois Fund, the McCormick Place Expansion Project Fund, the 
Illinois Tax Increment Fund, and the Tax Compliance and 
Administration Fund as provided in this Section, the 
Department shall pay each month into the Road Fund the amount 
estimated to represent 80% of the net revenue realized from 
the taxes imposed on motor fuel and gasohol. As used in this 
paragraph "motor fuel" has the meaning given to that term in 
Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the 
meaning given to that term in Section 3-40 of this Act.
    Of the remainder of the moneys received by the Department 
pursuant to this Act, 75% thereof shall be paid into the State 
Treasury and 25% shall be reserved in a special account and 
used only for the transfer to the Common School Fund as part of 
the monthly transfer from the General Revenue Fund in 
accordance with Section 8a of the State Finance Act.
    As soon as possible after the first day of each month, upon 
certification of the Department of Revenue, the Comptroller 
shall order transferred and the Treasurer shall transfer from 
the General Revenue Fund to the Motor Fuel Tax Fund an amount 
equal to 1.7% of 80% of the net revenue realized under this Act 
for the second preceding month. Beginning April 1, 2000, this 
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue 
collected by the State pursuant to this Act, less the amount 
paid out during that month as refunds to taxpayers for 
overpayment of liability.
    For greater simplicity of administration, manufacturers, 
importers and wholesalers whose products are sold at retail in 
Illinois by numerous retailers, and who wish to do so, may 
assume the responsibility for accounting and paying to the 
Department all tax accruing under this Act with respect to 
such sales, if the retailers who are affected do not make 
written objection to the Department to this arrangement.
(Source: P.A. 102-700, Article 60, Section 60-15, eff. 
4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22; 
102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff. 
7-28-23.)
 
    Section 110-10. The Service Use Tax Act is amended by 
changing Section 9 as follows:
 
    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
    Sec. 9. Each serviceman required or authorized to collect 
the tax herein imposed shall pay to the Department the amount 
of such tax (except as otherwise provided) at the time when he 
is required to file his return for the period during which such 
tax was collected, less a discount of 2.1% prior to January 1, 
1990 and 1.75% on and after January 1, 1990, or $5 per calendar 
year, whichever is greater, which is allowed to reimburse the 
serviceman for expenses incurred in collecting the tax, 
keeping records, preparing and filing returns, remitting the 
tax and supplying data to the Department on request. Beginning 
with returns due on or after January 1, 2025, the vendor's 
discount allowed in this Section, the Retailers' Occupation 
Tax Act, the Service Occupation Tax Act, and the Use Tax Act, 
including any local tax administered by the Department and 
reported on the same return, shall not exceed $1,000 per month 
in the aggregate. When determining the discount allowed under 
this Section, servicemen shall include the amount of tax that 
would have been due at the 1% rate but for the 0% rate imposed 
under this amendatory Act of the 102nd General Assembly. The 
discount under this Section is not allowed for the 1.25% 
portion of taxes paid on aviation fuel that is subject to the 
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
47133. The discount allowed under this Section is allowed only 
for returns that are filed in the manner required by this Act. 
The Department may disallow the discount for servicemen whose 
certificate of registration is revoked at the time the return 
is filed, but only if the Department's decision to revoke the 
certificate of registration has become final. A serviceman 
need not remit that part of any tax collected by him to the 
extent that he is required to pay and does pay the tax imposed 
by the Service Occupation Tax Act with respect to his sale of 
service involving the incidental transfer by him of the same 
property.
    Except as provided hereinafter in this Section, on or 
before the twentieth day of each calendar month, such 
serviceman shall file a return for the preceding calendar 
month in accordance with reasonable Rules and Regulations to 
be promulgated by the Department. Such return shall be filed 
on a form prescribed by the Department and shall contain such 
information as the Department may reasonably require. The 
return shall include the gross receipts which were received 
during the preceding calendar month or quarter on the 
following items upon which tax would have been due but for the 
0% rate imposed under this amendatory Act of the 102nd General 
Assembly: (i) food for human consumption that is to be 
consumed off the premises where it is sold (other than 
alcoholic beverages, food consisting of or infused with adult 
use cannabis, soft drinks, and food that has been prepared for 
immediate consumption); and (ii) food prepared for immediate 
consumption and transferred incident to a sale of service 
subject to this Act or the Service Occupation Tax Act by an 
entity licensed under the Hospital Licensing Act, the Nursing 
Home Care Act, the Assisted Living and Shared Housing Act, the 
ID/DD Community Care Act, the MC/DD Act, the Specialized 
Mental Health Rehabilitation Act of 2013, or the Child Care 
Act of 1969, or an entity that holds a permit issued pursuant 
to the Life Care Facilities Act. The return shall also include 
the amount of tax that would have been due on the items listed 
in the previous sentence but for the 0% rate imposed under this 
amendatory Act of the 102nd General Assembly. 
    On and after January 1, 2018, with respect to servicemen 
whose annual gross receipts average $20,000 or more, all 
returns required to be filed pursuant to this Act shall be 
filed electronically. Servicemen who demonstrate that they do 
not have access to the Internet or demonstrate hardship in 
filing electronically may petition the Department to waive the 
electronic filing requirement. 
    The Department may require returns to be filed on a 
quarterly basis. If so required, a return for each calendar 
quarter shall be filed on or before the twentieth day of the 
calendar month following the end of such calendar quarter. The 
taxpayer shall also file a return with the Department for each 
of the first two months of each calendar quarter, on or before 
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from 
    which he engages in business as a serviceman in this 
    State;
        3. The total amount of taxable receipts received by 
    him during the preceding calendar month, including 
    receipts from charge and time sales, but less all 
    deductions allowed by law;
        4. The amount of credit provided in Section 2d of this 
    Act;
        5. The amount of tax due;
        5-5. The signature of the taxpayer; and
        6. Such other reasonable information as the Department 
    may require.
    Each serviceman required or authorized to collect the tax 
imposed by this Act on aviation fuel transferred as an 
incident of a sale of service in this State during the 
preceding calendar month shall, instead of reporting and 
paying tax on aviation fuel as otherwise required by this 
Section, report and pay such tax on a separate aviation fuel 
tax return. The requirements related to the return shall be as 
otherwise provided in this Section. Notwithstanding any other 
provisions of this Act to the contrary, servicemen collecting 
tax on aviation fuel shall file all aviation fuel tax returns 
and shall make all aviation fuel tax payments by electronic 
means in the manner and form required by the Department. For 
purposes of this Section, "aviation fuel" means jet fuel and 
aviation gasoline. 
    If a taxpayer fails to sign a return within 30 days after 
the proper notice and demand for signature by the Department, 
the return shall be considered valid and any amount shown to be 
due on the return shall be deemed assessed.
    Notwithstanding any other provision of this Act to the 
contrary, servicemen subject to tax on cannabis shall file all 
cannabis tax returns and shall make all cannabis tax payments 
by electronic means in the manner and form required by the 
Department.
    Beginning October 1, 1993, a taxpayer who has an average 
monthly tax liability of $150,000 or more shall make all 
payments required by rules of the Department by electronic 
funds transfer. Beginning October 1, 1994, a taxpayer who has 
an average monthly tax liability of $100,000 or more shall 
make all payments required by rules of the Department by 
electronic funds transfer. Beginning October 1, 1995, a 
taxpayer who has an average monthly tax liability of $50,000 
or more shall make all payments required by rules of the 
Department by electronic funds transfer. Beginning October 1, 
2000, a taxpayer who has an annual tax liability of $200,000 or 
more shall make all payments required by rules of the 
Department by electronic funds transfer. The term "annual tax 
liability" shall be the sum of the taxpayer's liabilities 
under this Act, and under all other State and local occupation 
and use tax laws administered by the Department, for the 
immediately preceding calendar year. The term "average monthly 
tax liability" means the sum of the taxpayer's liabilities 
under this Act, and under all other State and local occupation 
and use tax laws administered by the Department, for the 
immediately preceding calendar year divided by 12. Beginning 
on October 1, 2002, a taxpayer who has a tax liability in the 
amount set forth in subsection (b) of Section 2505-210 of the 
Department of Revenue Law shall make all payments required by 
rules of the Department by electronic funds transfer.
    Before August 1 of each year beginning in 1993, the 
Department shall notify all taxpayers required to make 
payments by electronic funds transfer. All taxpayers required 
to make payments by electronic funds transfer shall make those 
payments for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic 
funds transfer may make payments by electronic funds transfer 
with the permission of the Department.
    All taxpayers required to make payment by electronic funds 
transfer and any taxpayers authorized to voluntarily make 
payments by electronic funds transfer shall make those 
payments in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to 
effectuate a program of electronic funds transfer and the 
requirements of this Section.
    If the serviceman is otherwise required to file a monthly 
return and if the serviceman's average monthly tax liability 
to the Department does not exceed $200, the Department may 
authorize his returns to be filed on a quarter annual basis, 
with the return for January, February and March of a given year 
being due by April 20 of such year; with the return for April, 
May and June of a given year being due by July 20 of such year; 
with the return for July, August and September of a given year 
being due by October 20 of such year, and with the return for 
October, November and December of a given year being due by 
January 20 of the following year.
    If the serviceman is otherwise required to file a monthly 
or quarterly return and if the serviceman's average monthly 
tax liability to the Department does not exceed $50, the 
Department may authorize his returns to be filed on an annual 
basis, with the return for a given year being due by January 20 
of the following year.
    Such quarter annual and annual returns, as to form and 
substance, shall be subject to the same requirements as 
monthly returns.
    Notwithstanding any other provision in this Act concerning 
the time within which a serviceman may file his return, in the 
case of any serviceman who ceases to engage in a kind of 
business which makes him responsible for filing returns under 
this Act, such serviceman shall file a final return under this 
Act with the Department not more than 1 month after 
discontinuing such business.
    Where a serviceman collects the tax with respect to the 
selling price of property which he sells and the purchaser 
thereafter returns such property and the serviceman refunds 
the selling price thereof to the purchaser, such serviceman 
shall also refund, to the purchaser, the tax so collected from 
the purchaser. When filing his return for the period in which 
he refunds such tax to the purchaser, the serviceman may 
deduct the amount of the tax so refunded by him to the 
purchaser from any other Service Use Tax, Service Occupation 
Tax, retailers' occupation tax or use tax which such 
serviceman may be required to pay or remit to the Department, 
as shown by such return, provided that the amount of the tax to 
be deducted shall previously have been remitted to the 
Department by such serviceman. If the serviceman shall not 
previously have remitted the amount of such tax to the 
Department, he shall be entitled to no deduction hereunder 
upon refunding such tax to the purchaser.
    Any serviceman filing a return hereunder shall also 
include the total tax upon the selling price of tangible 
personal property purchased for use by him as an incident to a 
sale of service, and such serviceman shall remit the amount of 
such tax to the Department when filing such return.
    If experience indicates such action to be practicable, the 
Department may prescribe and furnish a combination or joint 
return which will enable servicemen, who are required to file 
returns hereunder and also under the Service Occupation Tax 
Act, to furnish all the return information required by both 
Acts on the one form.
    Where the serviceman has more than one business registered 
with the Department under separate registration hereunder, 
such serviceman shall not file each return that is due as a 
single return covering all such registered businesses, but 
shall file separate returns for each such registered business.
    Beginning January 1, 1990, each month the Department shall 
pay into the State and Local Tax Reform Fund, a special fund in 
the State Treasury, the net revenue realized for the preceding 
month from the 1% tax imposed under this Act.
    Beginning January 1, 1990, each month the Department shall 
pay into the State and Local Sales Tax Reform Fund 20% of the 
net revenue realized for the preceding month from the 6.25% 
general rate on transfers of tangible personal property, other 
than (i) tangible personal property which is purchased outside 
Illinois at retail from a retailer and which is titled or 
registered by an agency of this State's government and (ii) 
aviation fuel sold on or after December 1, 2019. This 
exception for aviation fuel only applies for so long as the 
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
47133 are binding on the State.
    For aviation fuel sold on or after December 1, 2019, each 
month the Department shall pay into the State Aviation Program 
Fund 20% of the net revenue realized for the preceding month 
from the 6.25% general rate on the selling price of aviation 
fuel, less an amount estimated by the Department to be 
required for refunds of the 20% portion of the tax on aviation 
fuel under this Act, which amount shall be deposited into the 
Aviation Fuel Sales Tax Refund Fund. The Department shall only 
pay moneys into the State Aviation Program Fund and the 
Aviation Fuel Sales Tax Refund Fund under this Act for so long 
as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133 are binding on the State. 
    Beginning August 1, 2000, each month the Department shall 
pay into the State and Local Sales Tax Reform Fund 100% of the 
net revenue realized for the preceding month from the 1.25% 
rate on the selling price of motor fuel and gasohol.
    Beginning October 1, 2009, each month the Department shall 
pay into the Capital Projects Fund an amount that is equal to 
an amount estimated by the Department to represent 80% of the 
net revenue realized for the preceding month from the sale of 
candy, grooming and hygiene products, and soft drinks that had 
been taxed at a rate of 1% prior to September 1, 2009 but that 
are now taxed at 6.25%. 
    Beginning July 1, 2013, each month the Department shall 
pay into the Underground Storage Tank Fund from the proceeds 
collected under this Act, the Use Tax Act, the Service 
Occupation Tax Act, and the Retailers' Occupation Tax Act an 
amount equal to the average monthly deficit in the Underground 
Storage Tank Fund during the prior year, as certified annually 
by the Illinois Environmental Protection Agency, but the total 
payment into the Underground Storage Tank Fund under this Act, 
the Use Tax Act, the Service Occupation Tax Act, and the 
Retailers' Occupation Tax Act shall not exceed $18,000,000 in 
any State fiscal year. As used in this paragraph, the "average 
monthly deficit" shall be equal to the difference between the 
average monthly claims for payment by the fund and the average 
monthly revenues deposited into the fund, excluding payments 
made pursuant to this paragraph. 
    Beginning July 1, 2015, of the remainder of the moneys 
received by the Department under the Use Tax Act, this Act, the 
Service Occupation Tax Act, and the Retailers' Occupation Tax 
Act, each month the Department shall deposit $500,000 into the 
State Crime Laboratory Fund. 
    Of the remainder of the moneys received by the Department 
pursuant to this Act, (a) 1.75% thereof shall be paid into the 
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 
and after July 1, 1989, 3.8% thereof shall be paid into the 
Build Illinois Fund; provided, however, that if in any fiscal 
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case 
may be, of the moneys received by the Department and required 
to be paid into the Build Illinois Fund pursuant to Section 3 
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax 
Act, Section 9 of the Service Use Tax Act, and Section 9 of the 
Service Occupation Tax Act, such Acts being hereinafter called 
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case 
may be, of moneys being hereinafter called the "Tax Act 
Amount", and (2) the amount transferred to the Build Illinois 
Fund from the State and Local Sales Tax Reform Fund shall be 
less than the Annual Specified Amount (as defined in Section 3 
of the Retailers' Occupation Tax Act), an amount equal to the 
difference shall be immediately paid into the Build Illinois 
Fund from other moneys received by the Department pursuant to 
the Tax Acts; and further provided, that if on the last 
business day of any month the sum of (1) the Tax Act Amount 
required to be deposited into the Build Illinois Bond Account 
in the Build Illinois Fund during such month and (2) the amount 
transferred during such month to the Build Illinois Fund from 
the State and Local Sales Tax Reform Fund shall have been less 
than 1/12 of the Annual Specified Amount, an amount equal to 
the difference shall be immediately paid into the Build 
Illinois Fund from other moneys received by the Department 
pursuant to the Tax Acts; and, further provided, that in no 
event shall the payments required under the preceding proviso 
result in aggregate payments into the Build Illinois Fund 
pursuant to this clause (b) for any fiscal year in excess of 
the greater of (i) the Tax Act Amount or (ii) the Annual 
Specified Amount for such fiscal year; and, further provided, 
that the amounts payable into the Build Illinois Fund under 
this clause (b) shall be payable only until such time as the 
aggregate amount on deposit under each trust indenture 
securing Bonds issued and outstanding pursuant to the Build 
Illinois Bond Act is sufficient, taking into account any 
future investment income, to fully provide, in accordance with 
such indenture, for the defeasance of or the payment of the 
principal of, premium, if any, and interest on the Bonds 
secured by such indenture and on any Bonds expected to be 
issued thereafter and all fees and costs payable with respect 
thereto, all as certified by the Director of the Bureau of the 
Budget (now Governor's Office of Management and Budget). If on 
the last business day of any month in which Bonds are 
outstanding pursuant to the Build Illinois Bond Act, the 
aggregate of the moneys deposited in the Build Illinois Bond 
Account in the Build Illinois Fund in such month shall be less 
than the amount required to be transferred in such month from 
the Build Illinois Bond Account to the Build Illinois Bond 
Retirement and Interest Fund pursuant to Section 13 of the 
Build Illinois Bond Act, an amount equal to such deficiency 
shall be immediately paid from other moneys received by the 
Department pursuant to the Tax Acts to the Build Illinois 
Fund; provided, however, that any amounts paid to the Build 
Illinois Fund in any fiscal year pursuant to this sentence 
shall be deemed to constitute payments pursuant to clause (b) 
of the preceding sentence and shall reduce the amount 
otherwise payable for such fiscal year pursuant to clause (b) 
of the preceding sentence. The moneys received by the 
Department pursuant to this Act and required to be deposited 
into the Build Illinois Fund are subject to the pledge, claim 
and charge set forth in Section 12 of the Build Illinois Bond 
Act.
    Subject to payment of amounts into the Build Illinois Fund 
as provided in the preceding paragraph or in any amendment 
thereto hereafter enacted, the following specified monthly 
installment of the amount requested in the certificate of the 
Chairman of the Metropolitan Pier and Exposition Authority 
provided under Section 8.25f of the State Finance Act, but not 
in excess of the sums designated as "Total Deposit", shall be 
deposited in the aggregate from collections under Section 9 of 
the Use Tax Act, Section 9 of the Service Use Tax Act, Section 
9 of the Service Occupation Tax Act, and Section 3 of the 
Retailers' Occupation Tax Act into the McCormick Place 
Expansion Project Fund in the specified fiscal years.
 
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021300,000,000 
2022300,000,000
2023300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
       
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034375,000,000
2035375,000,000
2036450,000,000
and 
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal 
year thereafter, one-eighth of the amount requested in the 
certificate of the Chairman of the Metropolitan Pier and 
Exposition Authority for that fiscal year, less the amount 
deposited into the McCormick Place Expansion Project Fund by 
the State Treasurer in the respective month under subsection 
(g) of Section 13 of the Metropolitan Pier and Exposition 
Authority Act, plus cumulative deficiencies in the deposits 
required under this Section for previous months and years, 
shall be deposited into the McCormick Place Expansion Project 
Fund, until the full amount requested for the fiscal year, but 
not in excess of the amount specified above as "Total 
Deposit", has been deposited.
    Subject to payment of amounts into the Capital Projects 
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, 
and the McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs or in any amendments thereto hereafter 
enacted, for aviation fuel sold on or after December 1, 2019, 
the Department shall each month deposit into the Aviation Fuel 
Sales Tax Refund Fund an amount estimated by the Department to 
be required for refunds of the 80% portion of the tax on 
aviation fuel under this Act. The Department shall only 
deposit moneys into the Aviation Fuel Sales Tax Refund Fund 
under this paragraph for so long as the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
binding on the State. 
    Subject to payment of amounts into the Build Illinois Fund 
and the McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs or in any amendments thereto hereafter 
enacted, beginning July 1, 1993 and ending on September 30, 
2013, the Department shall each month pay into the Illinois 
Tax Increment Fund 0.27% of 80% of the net revenue realized for 
the preceding month from the 6.25% general rate on the selling 
price of tangible personal property.
    Subject to payment of amounts into the Build Illinois 
Fund, the McCormick Place Expansion Project Fund, the Illinois 
Tax Increment Fund, pursuant to the preceding paragraphs or in 
any amendments to this Section hereafter enacted, beginning on 
the first day of the first calendar month to occur on or after 
August 26, 2014 (the effective date of Public Act 98-1098), 
each month, from the collections made under Section 9 of the 
Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of 
the Service Occupation Tax Act, and Section 3 of the 
Retailers' Occupation Tax Act, the Department shall pay into 
the Tax Compliance and Administration Fund, to be used, 
subject to appropriation, to fund additional auditors and 
compliance personnel at the Department of Revenue, an amount 
equal to 1/12 of 5% of 80% of the cash receipts collected 
during the preceding fiscal year by the Audit Bureau of the 
Department under the Use Tax Act, the Service Use Tax Act, the 
Service Occupation Tax Act, the Retailers' Occupation Tax Act, 
and associated local occupation and use taxes administered by 
the Department. 
    Subject to payments of amounts into the Build Illinois 
Fund, the McCormick Place Expansion Project Fund, the Illinois 
Tax Increment Fund, and the Tax Compliance and Administration 
Fund as provided in this Section, beginning on July 1, 2018 the 
Department shall pay each month into the Downstate Public 
Transportation Fund the moneys required to be so paid under 
Section 2-3 of the Downstate Public Transportation Act.
    Subject to successful execution and delivery of a 
public-private agreement between the public agency and private 
entity and completion of the civic build, beginning on July 1, 
2023, of the remainder of the moneys received by the 
Department under the Use Tax Act, the Service Use Tax Act, the 
Service Occupation Tax Act, and this Act, the Department shall 
deposit the following specified deposits in the aggregate from 
collections under the Use Tax Act, the Service Use Tax Act, the 
Service Occupation Tax Act, and the Retailers' Occupation Tax 
Act, as required under Section 8.25g of the State Finance Act 
for distribution consistent with the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
The moneys received by the Department pursuant to this Act and 
required to be deposited into the Civic and Transit 
Infrastructure Fund are subject to the pledge, claim, and 
charge set forth in Section 25-55 of the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
As used in this paragraph, "civic build", "private entity", 
"public-private agreement", and "public agency" have the 
meanings provided in Section 25-10 of the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
        Fiscal Year............................Total Deposit 
        2024....................................$200,000,000 
        2025....................................$206,000,000 
        2026....................................$212,200,000 
        2027....................................$218,500,000 
        2028....................................$225,100,000 
        2029....................................$288,700,000 
        2030....................................$298,900,000 
        2031....................................$309,300,000 
        2032....................................$320,100,000 
        2033....................................$331,200,000 
        2034....................................$341,200,000 
        2035....................................$351,400,000 
        2036....................................$361,900,000 
        2037....................................$372,800,000 
        2038....................................$384,000,000 
        2039....................................$395,500,000 
        2040....................................$407,400,000 
        2041....................................$419,600,000 
        2042....................................$432,200,000 
        2043....................................$445,100,000 
    Beginning July 1, 2021 and until July 1, 2022, subject to 
the payment of amounts into the State and Local Sales Tax 
Reform Fund, the Build Illinois Fund, the McCormick Place 
Expansion Project Fund, the Energy Infrastructure Fund, and 
the Tax Compliance and Administration Fund as provided in this 
Section, the Department shall pay each month into the Road 
Fund the amount estimated to represent 16% of the net revenue 
realized from the taxes imposed on motor fuel and gasohol. 
Beginning July 1, 2022 and until July 1, 2023, subject to the 
payment of amounts into the State and Local Sales Tax Reform 
Fund, the Build Illinois Fund, the McCormick Place Expansion 
Project Fund, the Illinois Tax Increment Fund, and the Tax 
Compliance and Administration Fund as provided in this 
Section, the Department shall pay each month into the Road 
Fund the amount estimated to represent 32% of the net revenue 
realized from the taxes imposed on motor fuel and gasohol. 
Beginning July 1, 2023 and until July 1, 2024, subject to the 
payment of amounts into the State and Local Sales Tax Reform 
Fund, the Build Illinois Fund, the McCormick Place Expansion 
Project Fund, the Illinois Tax Increment Fund, and the Tax 
Compliance and Administration Fund as provided in this 
Section, the Department shall pay each month into the Road 
Fund the amount estimated to represent 48% of the net revenue 
realized from the taxes imposed on motor fuel and gasohol. 
Beginning July 1, 2024 and until July 1, 2025, subject to the 
payment of amounts into the State and Local Sales Tax Reform 
Fund, the Build Illinois Fund, the McCormick Place Expansion 
Project Fund, the Illinois Tax Increment Fund, and the Tax 
Compliance and Administration Fund as provided in this 
Section, the Department shall pay each month into the Road 
Fund the amount estimated to represent 64% of the net revenue 
realized from the taxes imposed on motor fuel and gasohol. 
Beginning on July 1, 2025, subject to the payment of amounts 
into the State and Local Sales Tax Reform Fund, the Build 
Illinois Fund, the McCormick Place Expansion Project Fund, the 
Illinois Tax Increment Fund, and the Tax Compliance and 
Administration Fund as provided in this Section, the 
Department shall pay each month into the Road Fund the amount 
estimated to represent 80% of the net revenue realized from 
the taxes imposed on motor fuel and gasohol. As used in this 
paragraph "motor fuel" has the meaning given to that term in 
Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the 
meaning given to that term in Section 3-40 of the Use Tax Act. 
    Of the remainder of the moneys received by the Department 
pursuant to this Act, 75% thereof shall be paid into the 
General Revenue Fund of the State Treasury and 25% shall be 
reserved in a special account and used only for the transfer to 
the Common School Fund as part of the monthly transfer from the 
General Revenue Fund in accordance with Section 8a of the 
State Finance Act.
    As soon as possible after the first day of each month, upon 
certification of the Department of Revenue, the Comptroller 
shall order transferred and the Treasurer shall transfer from 
the General Revenue Fund to the Motor Fuel Tax Fund an amount 
equal to 1.7% of 80% of the net revenue realized under this Act 
for the second preceding month. Beginning April 1, 2000, this 
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue 
collected by the State pursuant to this Act, less the amount 
paid out during that month as refunds to taxpayers for 
overpayment of liability.
(Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)
 
    Section 110-15. The Service Occupation Tax Act is amended 
by changing Section 9 as follows:
 
    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
    Sec. 9. Each serviceman required or authorized to collect 
the tax herein imposed shall pay to the Department the amount 
of such tax at the time when he is required to file his return 
for the period during which such tax was collectible, less a 
discount of 2.1% prior to January 1, 1990, and 1.75% on and 
after January 1, 1990, or $5 per calendar year, whichever is 
greater, which is allowed to reimburse the serviceman for 
expenses incurred in collecting the tax, keeping records, 
preparing and filing returns, remitting the tax, and supplying 
data to the Department on request. Beginning with returns due 
on or after January 1, 2025, the vendor's discount allowed in 
this Section, the Retailers' Occupation Tax Act, the Use Tax 
Act, and the Service Use Tax Act, including any local tax 
administered by the Department and reported on the same 
return, shall not exceed $1,000 per month in the aggregate. 
When determining the discount allowed under this Section, 
servicemen shall include the amount of tax that would have 
been due at the 1% rate but for the 0% rate imposed under 
Public Act 102-700 this amendatory Act of the 102nd General 
Assembly. The discount under this Section is not allowed for 
the 1.25% portion of taxes paid on aviation fuel that is 
subject to the revenue use requirements of 49 U.S.C. 47107(b) 
and 49 U.S.C. 47133. The discount allowed under this Section 
is allowed only for returns that are filed in the manner 
required by this Act. The Department may disallow the discount 
for servicemen whose certificate of registration is revoked at 
the time the return is filed, but only if the Department's 
decision to revoke the certificate of registration has become 
final.
    Where such tangible personal property is sold under a 
conditional sales contract, or under any other form of sale 
wherein the payment of the principal sum, or a part thereof, is 
extended beyond the close of the period for which the return is 
filed, the serviceman, in collecting the tax may collect, for 
each tax return period, only the tax applicable to the part of 
the selling price actually received during such tax return 
period.
    Except as provided hereinafter in this Section, on or 
before the twentieth day of each calendar month, such 
serviceman shall file a return for the preceding calendar 
month in accordance with reasonable rules and regulations to 
be promulgated by the Department of Revenue. Such return shall 
be filed on a form prescribed by the Department and shall 
contain such information as the Department may reasonably 
require. The return shall include the gross receipts which 
were received during the preceding calendar month or quarter 
on the following items upon which tax would have been due but 
for the 0% rate imposed under Public Act 102-700 this 
amendatory Act of the 102nd General Assembly: (i) food for 
human consumption that is to be consumed off the premises 
where it is sold (other than alcoholic beverages, food 
consisting of or infused with adult use cannabis, soft drinks, 
and food that has been prepared for immediate consumption); 
and (ii) food prepared for immediate consumption and 
transferred incident to a sale of service subject to this Act 
or the Service Use Tax Act by an entity licensed under the 
Hospital Licensing Act, the Nursing Home Care Act, the 
Assisted Living and Shared Housing Act, the ID/DD Community 
Care Act, the MC/DD Act, the Specialized Mental Health 
Rehabilitation Act of 2013, or the Child Care Act of 1969, or 
an entity that holds a permit issued pursuant to the Life Care 
Facilities Act. The return shall also include the amount of 
tax that would have been due on the items listed in the 
previous sentence but for the 0% rate imposed under Public Act 
102-700 this amendatory Act of the 102nd General Assembly.
    On and after January 1, 2018, with respect to servicemen 
whose annual gross receipts average $20,000 or more, all 
returns required to be filed pursuant to this Act shall be 
filed electronically. Servicemen who demonstrate that they do 
not have access to the Internet or demonstrate hardship in 
filing electronically may petition the Department to waive the 
electronic filing requirement. 
    The Department may require returns to be filed on a 
quarterly basis. If so required, a return for each calendar 
quarter shall be filed on or before the twentieth day of the 
calendar month following the end of such calendar quarter. The 
taxpayer shall also file a return with the Department for each 
of the first two months of each calendar quarter, on or before 
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from 
    which he engages in business as a serviceman in this 
    State;
        3. The total amount of taxable receipts received by 
    him during the preceding calendar month, including 
    receipts from charge and time sales, but less all 
    deductions allowed by law;
        4. The amount of credit provided in Section 2d of this 
    Act;
        5. The amount of tax due;
        5-5. The signature of the taxpayer; and
        6. Such other reasonable information as the Department 
    may require.
    Each serviceman required or authorized to collect the tax 
herein imposed on aviation fuel acquired as an incident to the 
purchase of a service in this State during the preceding 
calendar month shall, instead of reporting and paying tax as 
otherwise required by this Section, report and pay such tax on 
a separate aviation fuel tax return. The requirements related 
to the return shall be as otherwise provided in this Section. 
Notwithstanding any other provisions of this Act to the 
contrary, servicemen transferring aviation fuel incident to 
sales of service shall file all aviation fuel tax returns and 
shall make all aviation fuel tax payments by electronic means 
in the manner and form required by the Department. For 
purposes of this Section, "aviation fuel" means jet fuel and 
aviation gasoline. 
    If a taxpayer fails to sign a return within 30 days after 
the proper notice and demand for signature by the Department, 
the return shall be considered valid and any amount shown to be 
due on the return shall be deemed assessed.
    Notwithstanding any other provision of this Act to the 
contrary, servicemen subject to tax on cannabis shall file all 
cannabis tax returns and shall make all cannabis tax payments 
by electronic means in the manner and form required by the 
Department.
    Prior to October 1, 2003, and on and after September 1, 
2004 a serviceman may accept a Manufacturer's Purchase Credit 
certification from a purchaser in satisfaction of Service Use 
Tax as provided in Section 3-70 of the Service Use Tax Act if 
the purchaser provides the appropriate documentation as 
required by Section 3-70 of the Service Use Tax Act. A 
Manufacturer's Purchase Credit certification, accepted prior 
to October 1, 2003 or on or after September 1, 2004 by a 
serviceman as provided in Section 3-70 of the Service Use Tax 
Act, may be used by that serviceman to satisfy Service 
Occupation Tax liability in the amount claimed in the 
certification, not to exceed 6.25% of the receipts subject to 
tax from a qualifying purchase. A Manufacturer's Purchase 
Credit reported on any original or amended return filed under 
this Act after October 20, 2003 for reporting periods prior to 
September 1, 2004 shall be disallowed. Manufacturer's Purchase 
Credit reported on annual returns due on or after January 1, 
2005 will be disallowed for periods prior to September 1, 
2004. No Manufacturer's Purchase Credit may be used after 
September 30, 2003 through August 31, 2004 to satisfy any tax 
liability imposed under this Act, including any audit 
liability.
    Beginning on July 1, 2023 and through December 31, 2032, a 
serviceman may accept a Sustainable Aviation Fuel Purchase 
Credit certification from an air common carrier-purchaser in 
satisfaction of Service Use Tax as provided in Section 3-72 of 
the Service Use Tax Act if the purchaser provides the 
appropriate documentation as required by Section 3-72 of the 
Service Use Tax Act. A Sustainable Aviation Fuel Purchase 
Credit certification accepted by a serviceman in accordance 
with this paragraph may be used by that serviceman to satisfy 
service occupation tax liability (but not in satisfaction of 
penalty or interest) in the amount claimed in the 
certification, not to exceed 6.25% of the receipts subject to 
tax from a sale of aviation fuel. In addition, for a sale of 
aviation fuel to qualify to earn the Sustainable Aviation Fuel 
Purchase Credit, servicemen must retain in their books and 
records a certification from the producer of the aviation fuel 
that the aviation fuel sold by the serviceman and for which a 
sustainable aviation fuel purchase credit was earned meets the 
definition of sustainable aviation fuel under Section 3-72 of 
the Service Use Tax Act. The documentation must include detail 
sufficient for the Department to determine the number of 
gallons of sustainable aviation fuel sold. 
    If the serviceman's average monthly tax liability to the 
Department does not exceed $200, the Department may authorize 
his returns to be filed on a quarter annual basis, with the 
return for January, February, and March of a given year being 
due by April 20 of such year; with the return for April, May, 
and June of a given year being due by July 20 of such year; 
with the return for July, August, and September of a given year 
being due by October 20 of such year, and with the return for 
October, November, and December of a given year being due by 
January 20 of the following year.
    If the serviceman's average monthly tax liability to the 
Department does not exceed $50, the Department may authorize 
his returns to be filed on an annual basis, with the return for 
a given year being due by January 20 of the following year.
    Such quarter annual and annual returns, as to form and 
substance, shall be subject to the same requirements as 
monthly returns.
    Notwithstanding any other provision in this Act concerning 
the time within which a serviceman may file his return, in the 
case of any serviceman who ceases to engage in a kind of 
business which makes him responsible for filing returns under 
this Act, such serviceman shall file a final return under this 
Act with the Department not more than one 1 month after 
discontinuing such business.
    Beginning October 1, 1993, a taxpayer who has an average 
monthly tax liability of $150,000 or more shall make all 
payments required by rules of the Department by electronic 
funds transfer. Beginning October 1, 1994, a taxpayer who has 
an average monthly tax liability of $100,000 or more shall 
make all payments required by rules of the Department by 
electronic funds transfer. Beginning October 1, 1995, a 
taxpayer who has an average monthly tax liability of $50,000 
or more shall make all payments required by rules of the 
Department by electronic funds transfer. Beginning October 1, 
2000, a taxpayer who has an annual tax liability of $200,000 or 
more shall make all payments required by rules of the 
Department by electronic funds transfer. The term "annual tax 
liability" shall be the sum of the taxpayer's liabilities 
under this Act, and under all other State and local occupation 
and use tax laws administered by the Department, for the 
immediately preceding calendar year. The term "average monthly 
tax liability" means the sum of the taxpayer's liabilities 
under this Act, and under all other State and local occupation 
and use tax laws administered by the Department, for the 
immediately preceding calendar year divided by 12. Beginning 
on October 1, 2002, a taxpayer who has a tax liability in the 
amount set forth in subsection (b) of Section 2505-210 of the 
Department of Revenue Law shall make all payments required by 
rules of the Department by electronic funds transfer.
    Before August 1 of each year beginning in 1993, the 
Department shall notify all taxpayers required to make 
payments by electronic funds transfer. All taxpayers required 
to make payments by electronic funds transfer shall make those 
payments for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic 
funds transfer may make payments by electronic funds transfer 
with the permission of the Department.
    All taxpayers required to make payment by electronic funds 
transfer and any taxpayers authorized to voluntarily make 
payments by electronic funds transfer shall make those 
payments in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to 
effectuate a program of electronic funds transfer and the 
requirements of this Section.
    Where a serviceman collects the tax with respect to the 
selling price of tangible personal property which he sells and 
the purchaser thereafter returns such tangible personal 
property and the serviceman refunds the selling price thereof 
to the purchaser, such serviceman shall also refund, to the 
purchaser, the tax so collected from the purchaser. When 
filing his return for the period in which he refunds such tax 
to the purchaser, the serviceman may deduct the amount of the 
tax so refunded by him to the purchaser from any other Service 
Occupation Tax, Service Use Tax, Retailers' Occupation Tax, or 
Use Tax which such serviceman may be required to pay or remit 
to the Department, as shown by such return, provided that the 
amount of the tax to be deducted shall previously have been 
remitted to the Department by such serviceman. If the 
serviceman shall not previously have remitted the amount of 
such tax to the Department, he shall be entitled to no 
deduction hereunder upon refunding such tax to the purchaser.
    If experience indicates such action to be practicable, the 
Department may prescribe and furnish a combination or joint 
return which will enable servicemen, who are required to file 
returns hereunder and also under the Retailers' Occupation Tax 
Act, the Use Tax Act, or the Service Use Tax Act, to furnish 
all the return information required by all said Acts on the one 
form.
    Where the serviceman has more than one business registered 
with the Department under separate registrations hereunder, 
such serviceman shall file separate returns for each 
registered business.
    Beginning January 1, 1990, each month the Department shall 
pay into the Local Government Tax Fund the revenue realized 
for the preceding month from the 1% tax imposed under this Act.
    Beginning January 1, 1990, each month the Department shall 
pay into the County and Mass Transit District Fund 4% of the 
revenue realized for the preceding month from the 6.25% 
general rate on sales of tangible personal property other than 
aviation fuel sold on or after December 1, 2019. This 
exception for aviation fuel only applies for so long as the 
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
47133 are binding on the State.
    Beginning August 1, 2000, each month the Department shall 
pay into the County and Mass Transit District Fund 20% of the 
net revenue realized for the preceding month from the 1.25% 
rate on the selling price of motor fuel and gasohol.
    Beginning January 1, 1990, each month the Department shall 
pay into the Local Government Tax Fund 16% of the revenue 
realized for the preceding month from the 6.25% general rate 
on transfers of tangible personal property other than aviation 
fuel sold on or after December 1, 2019. This exception for 
aviation fuel only applies for so long as the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
binding on the State.
    For aviation fuel sold on or after December 1, 2019, each 
month the Department shall pay into the State Aviation Program 
Fund 20% of the net revenue realized for the preceding month 
from the 6.25% general rate on the selling price of aviation 
fuel, less an amount estimated by the Department to be 
required for refunds of the 20% portion of the tax on aviation 
fuel under this Act, which amount shall be deposited into the 
Aviation Fuel Sales Tax Refund Fund. The Department shall only 
pay moneys into the State Aviation Program Fund and the 
Aviation Fuel Sales Tax Refund Fund under this Act for so long 
as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133 are binding on the State. 
    Beginning August 1, 2000, each month the Department shall 
pay into the Local Government Tax Fund 80% of the net revenue 
realized for the preceding month from the 1.25% rate on the 
selling price of motor fuel and gasohol.
    Beginning October 1, 2009, each month the Department shall 
pay into the Capital Projects Fund an amount that is equal to 
an amount estimated by the Department to represent 80% of the 
net revenue realized for the preceding month from the sale of 
candy, grooming and hygiene products, and soft drinks that had 
been taxed at a rate of 1% prior to September 1, 2009 but that 
are now taxed at 6.25%. 
    Beginning July 1, 2013, each month the Department shall 
pay into the Underground Storage Tank Fund from the proceeds 
collected under this Act, the Use Tax Act, the Service Use Tax 
Act, and the Retailers' Occupation Tax Act an amount equal to 
the average monthly deficit in the Underground Storage Tank 
Fund during the prior year, as certified annually by the 
Illinois Environmental Protection Agency, but the total 
payment into the Underground Storage Tank Fund under this Act, 
the Use Tax Act, the Service Use Tax Act, and the Retailers' 
Occupation Tax Act shall not exceed $18,000,000 in any State 
fiscal year. As used in this paragraph, the "average monthly 
deficit" shall be equal to the difference between the average 
monthly claims for payment by the fund and the average monthly 
revenues deposited into the fund, excluding payments made 
pursuant to this paragraph. 
    Beginning July 1, 2015, of the remainder of the moneys 
received by the Department under the Use Tax Act, the Service 
Use Tax Act, this Act, and the Retailers' Occupation Tax Act, 
each month the Department shall deposit $500,000 into the 
State Crime Laboratory Fund. 
    Of the remainder of the moneys received by the Department 
pursuant to this Act, (a) 1.75% thereof shall be paid into the 
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 
and after July 1, 1989, 3.8% thereof shall be paid into the 
Build Illinois Fund; provided, however, that if in any fiscal 
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case 
may be, of the moneys received by the Department and required 
to be paid into the Build Illinois Fund pursuant to Section 3 
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax 
Act, Section 9 of the Service Use Tax Act, and Section 9 of the 
Service Occupation Tax Act, such Acts being hereinafter called 
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case 
may be, of moneys being hereinafter called the "Tax Act 
Amount", and (2) the amount transferred to the Build Illinois 
Fund from the State and Local Sales Tax Reform Fund shall be 
less than the Annual Specified Amount (as defined in Section 3 
of the Retailers' Occupation Tax Act), an amount equal to the 
difference shall be immediately paid into the Build Illinois 
Fund from other moneys received by the Department pursuant to 
the Tax Acts; and further provided, that if on the last 
business day of any month the sum of (1) the Tax Act Amount 
required to be deposited into the Build Illinois Account in 
the Build Illinois Fund during such month and (2) the amount 
transferred during such month to the Build Illinois Fund from 
the State and Local Sales Tax Reform Fund shall have been less 
than 1/12 of the Annual Specified Amount, an amount equal to 
the difference shall be immediately paid into the Build 
Illinois Fund from other moneys received by the Department 
pursuant to the Tax Acts; and, further provided, that in no 
event shall the payments required under the preceding proviso 
result in aggregate payments into the Build Illinois Fund 
pursuant to this clause (b) for any fiscal year in excess of 
the greater of (i) the Tax Act Amount or (ii) the Annual 
Specified Amount for such fiscal year; and, further provided, 
that the amounts payable into the Build Illinois Fund under 
this clause (b) shall be payable only until such time as the 
aggregate amount on deposit under each trust indenture 
securing Bonds issued and outstanding pursuant to the Build 
Illinois Bond Act is sufficient, taking into account any 
future investment income, to fully provide, in accordance with 
such indenture, for the defeasance of or the payment of the 
principal of, premium, if any, and interest on the Bonds 
secured by such indenture and on any Bonds expected to be 
issued thereafter and all fees and costs payable with respect 
thereto, all as certified by the Director of the Bureau of the 
Budget (now Governor's Office of Management and Budget). If on 
the last business day of any month in which Bonds are 
outstanding pursuant to the Build Illinois Bond Act, the 
aggregate of the moneys deposited in the Build Illinois Bond 
Account in the Build Illinois Fund in such month shall be less 
than the amount required to be transferred in such month from 
the Build Illinois Bond Account to the Build Illinois Bond 
Retirement and Interest Fund pursuant to Section 13 of the 
Build Illinois Bond Act, an amount equal to such deficiency 
shall be immediately paid from other moneys received by the 
Department pursuant to the Tax Acts to the Build Illinois 
Fund; provided, however, that any amounts paid to the Build 
Illinois Fund in any fiscal year pursuant to this sentence 
shall be deemed to constitute payments pursuant to clause (b) 
of the preceding sentence and shall reduce the amount 
otherwise payable for such fiscal year pursuant to clause (b) 
of the preceding sentence. The moneys received by the 
Department pursuant to this Act and required to be deposited 
into the Build Illinois Fund are subject to the pledge, claim 
and charge set forth in Section 12 of the Build Illinois Bond 
Act.
    Subject to payment of amounts into the Build Illinois Fund 
as provided in the preceding paragraph or in any amendment 
thereto hereafter enacted, the following specified monthly 
installment of the amount requested in the certificate of the 
Chairman of the Metropolitan Pier and Exposition Authority 
provided under Section 8.25f of the State Finance Act, but not 
in excess of the sums designated as "Total Deposit", shall be 
deposited in the aggregate from collections under Section 9 of 
the Use Tax Act, Section 9 of the Service Use Tax Act, Section 
9 of the Service Occupation Tax Act, and Section 3 of the 
Retailers' Occupation Tax Act into the McCormick Place 
Expansion Project Fund in the specified fiscal years.
 
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021300,000,000 
2022300,000,000
2023300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
       
2032 375,000,000
2033 375,000,000
2034375,000,000
2035375,000,000
2036450,000,000
and 
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal 
year thereafter, one-eighth of the amount requested in the 
certificate of the Chairman of the Metropolitan Pier and 
Exposition Authority for that fiscal year, less the amount 
deposited into the McCormick Place Expansion Project Fund by 
the State Treasurer in the respective month under subsection 
(g) of Section 13 of the Metropolitan Pier and Exposition 
Authority Act, plus cumulative deficiencies in the deposits 
required under this Section for previous months and years, 
shall be deposited into the McCormick Place Expansion Project 
Fund, until the full amount requested for the fiscal year, but 
not in excess of the amount specified above as "Total 
Deposit", has been deposited.
    Subject to payment of amounts into the Capital Projects 
Fund, the Build Illinois Fund, and the McCormick Place 
Expansion Project Fund pursuant to the preceding paragraphs or 
in any amendments thereto hereafter enacted, for aviation fuel 
sold on or after December 1, 2019, the Department shall each 
month deposit into the Aviation Fuel Sales Tax Refund Fund an 
amount estimated by the Department to be required for refunds 
of the 80% portion of the tax on aviation fuel under this Act. 
The Department shall only deposit moneys into the Aviation 
Fuel Sales Tax Refund Fund under this paragraph for so long as 
the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133 are binding on the State. 
    Subject to payment of amounts into the Build Illinois Fund 
and the McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs or in any amendments thereto hereafter 
enacted, beginning July 1, 1993 and ending on September 30, 
2013, the Department shall each month pay into the Illinois 
Tax Increment Fund 0.27% of 80% of the net revenue realized for 
the preceding month from the 6.25% general rate on the selling 
price of tangible personal property.
    Subject to payment of amounts into the Build Illinois 
Fund, the McCormick Place Expansion Project Fund, and the 
Illinois Tax Increment Fund pursuant to the preceding 
paragraphs or in any amendments to this Section hereafter 
enacted, beginning on the first day of the first calendar 
month to occur on or after August 26, 2014 (the effective date 
of Public Act 98-1098), each month, from the collections made 
under Section 9 of the Use Tax Act, Section 9 of the Service 
Use Tax Act, Section 9 of the Service Occupation Tax Act, and 
Section 3 of the Retailers' Occupation Tax Act, the Department 
shall pay into the Tax Compliance and Administration Fund, to 
be used, subject to appropriation, to fund additional auditors 
and compliance personnel at the Department of Revenue, an 
amount equal to 1/12 of 5% of 80% of the cash receipts 
collected during the preceding fiscal year by the Audit Bureau 
of the Department under the Use Tax Act, the Service Use Tax 
Act, the Service Occupation Tax Act, the Retailers' Occupation 
Tax Act, and associated local occupation and use taxes 
administered by the Department. 
    Subject to payments of amounts into the Build Illinois 
Fund, the McCormick Place Expansion Project Fund, the Illinois 
Tax Increment Fund, and the Tax Compliance and Administration 
Fund as provided in this Section, beginning on July 1, 2018 the 
Department shall pay each month into the Downstate Public 
Transportation Fund the moneys required to be so paid under 
Section 2-3 of the Downstate Public Transportation Act. 
    Subject to successful execution and delivery of a 
public-private agreement between the public agency and private 
entity and completion of the civic build, beginning on July 1, 
2023, of the remainder of the moneys received by the 
Department under the Use Tax Act, the Service Use Tax Act, the 
Service Occupation Tax Act, and this Act, the Department shall 
deposit the following specified deposits in the aggregate from 
collections under the Use Tax Act, the Service Use Tax Act, the 
Service Occupation Tax Act, and the Retailers' Occupation Tax 
Act, as required under Section 8.25g of the State Finance Act 
for distribution consistent with the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
The moneys received by the Department pursuant to this Act and 
required to be deposited into the Civic and Transit 
Infrastructure Fund are subject to the pledge, claim and 
charge set forth in Section 25-55 of the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
As used in this paragraph, "civic build", "private entity", 
"public-private agreement", and "public agency" have the 
meanings provided in Section 25-10 of the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act.
        Fiscal Year............................Total Deposit 
        2024....................................$200,000,000 
        2025....................................$206,000,000 
        2026....................................$212,200,000 
        2027....................................$218,500,000 
        2028....................................$225,100,000 
        2029....................................$288,700,000 
        2030....................................$298,900,000 
        2031....................................$309,300,000 
        2032....................................$320,100,000 
        2033....................................$331,200,000 
        2034....................................$341,200,000 
        2035....................................$351,400,000 
        2036....................................$361,900,000 
        2037....................................$372,800,000 
        2038....................................$384,000,000 
        2039....................................$395,500,000 
        2040....................................$407,400,000 
        2041....................................$419,600,000 
        2042....................................$432,200,000 
        2043....................................$445,100,000 
    Beginning July 1, 2021 and until July 1, 2022, subject to 
the payment of amounts into the County and Mass Transit 
District Fund, the Local Government Tax Fund, the Build 
Illinois Fund, the McCormick Place Expansion Project Fund, the 
Illinois Tax Increment Fund, and the Tax Compliance and 
Administration Fund as provided in this Section, the 
Department shall pay each month into the Road Fund the amount 
estimated to represent 16% of the net revenue realized from 
the taxes imposed on motor fuel and gasohol. Beginning July 1, 
2022 and until July 1, 2023, subject to the payment of amounts 
into the County and Mass Transit District Fund, the Local 
Government Tax Fund, the Build Illinois Fund, the McCormick 
Place Expansion Project Fund, the Illinois Tax Increment Fund, 
and the Tax Compliance and Administration Fund as provided in 
this Section, the Department shall pay each month into the 
Road Fund the amount estimated to represent 32% of the net 
revenue realized from the taxes imposed on motor fuel and 
gasohol. Beginning July 1, 2023 and until July 1, 2024, 
subject to the payment of amounts into the County and Mass 
Transit District Fund, the Local Government Tax Fund, the 
Build Illinois Fund, the McCormick Place Expansion Project 
Fund, the Illinois Tax Increment Fund, and the Tax Compliance 
and Administration Fund as provided in this Section, the 
Department shall pay each month into the Road Fund the amount 
estimated to represent 48% of the net revenue realized from 
the taxes imposed on motor fuel and gasohol. Beginning July 1, 
2024 and until July 1, 2025, subject to the payment of amounts 
into the County and Mass Transit District Fund, the Local 
Government Tax Fund, the Build Illinois Fund, the McCormick 
Place Expansion Project Fund, the Illinois Tax Increment Fund, 
and the Tax Compliance and Administration Fund as provided in 
this Section, the Department shall pay each month into the 
Road Fund the amount estimated to represent 64% of the net 
revenue realized from the taxes imposed on motor fuel and 
gasohol. Beginning on July 1, 2025, subject to the payment of 
amounts into the County and Mass Transit District Fund, the 
Local Government Tax Fund, the Build Illinois Fund, the 
McCormick Place Expansion Project Fund, the Illinois Tax 
Increment Fund, and the Tax Compliance and Administration Fund 
as provided in this Section, the Department shall pay each 
month into the Road Fund the amount estimated to represent 80% 
of the net revenue realized from the taxes imposed on motor 
fuel and gasohol. As used in this paragraph "motor fuel" has 
the meaning given to that term in Section 1.1 of the Motor Fuel 
Tax Law, and "gasohol" has the meaning given to that term in 
Section 3-40 of the Use Tax Act.
    Of the remainder of the moneys received by the Department 
pursuant to this Act, 75% shall be paid into the General 
Revenue Fund of the State treasury Treasury and 25% shall be 
reserved in a special account and used only for the transfer to 
the Common School Fund as part of the monthly transfer from the 
General Revenue Fund in accordance with Section 8a of the 
State Finance Act.
    The Department may, upon separate written notice to a 
taxpayer, require the taxpayer to prepare and file with the 
Department on a form prescribed by the Department within not 
less than 60 days after receipt of the notice an annual 
information return for the tax year specified in the notice. 
Such annual return to the Department shall include a statement 
of gross receipts as shown by the taxpayer's last federal 
Federal income tax return. If the total receipts of the 
business as reported in the federal Federal income tax return 
do not agree with the gross receipts reported to the 
Department of Revenue for the same period, the taxpayer shall 
attach to his annual return a schedule showing a 
reconciliation of the 2 amounts and the reasons for the 
difference. The taxpayer's annual return to the Department 
shall also disclose the cost of goods sold by the taxpayer 
during the year covered by such return, opening and closing 
inventories of such goods for such year, cost of goods used 
from stock or taken from stock and given away by the taxpayer 
during such year, pay roll information of the taxpayer's 
business during such year and any additional reasonable 
information which the Department deems would be helpful in 
determining the accuracy of the monthly, quarterly or annual 
returns filed by such taxpayer as hereinbefore provided for in 
this Section.
    If the annual information return required by this Section 
is not filed when and as required, the taxpayer shall be liable 
as follows:
        (i) Until January 1, 1994, the taxpayer shall be 
    liable for a penalty equal to 1/6 of 1% of the tax due from 
    such taxpayer under this Act during the period to be 
    covered by the annual return for each month or fraction of 
    a month until such return is filed as required, the 
    penalty to be assessed and collected in the same manner as 
    any other penalty provided for in this Act.
        (ii) On and after January 1, 1994, the taxpayer shall 
    be liable for a penalty as described in Section 3-4 of the 
    Uniform Penalty and Interest Act.
    The chief executive officer, proprietor, owner, or highest 
ranking manager shall sign the annual return to certify the 
accuracy of the information contained therein. Any person who 
willfully signs the annual return containing false or 
inaccurate information shall be guilty of perjury and punished 
accordingly. The annual return form prescribed by the 
Department shall include a warning that the person signing the 
return may be liable for perjury.
    The foregoing portion of this Section concerning the 
filing of an annual information return shall not apply to a 
serviceman who is not required to file an income tax return 
with the United States Government.
    As soon as possible after the first day of each month, upon 
certification of the Department of Revenue, the Comptroller 
shall order transferred and the Treasurer shall transfer from 
the General Revenue Fund to the Motor Fuel Tax Fund an amount 
equal to 1.7% of 80% of the net revenue realized under this Act 
for the second preceding month. Beginning April 1, 2000, this 
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue 
collected by the State pursuant to this Act, less the amount 
paid out during that month as refunds to taxpayers for 
overpayment of liability.
    For greater simplicity of administration, it shall be 
permissible for manufacturers, importers and wholesalers whose 
products are sold by numerous servicemen in Illinois, and who 
wish to do so, to assume the responsibility for accounting and 
paying to the Department all tax accruing under this Act with 
respect to such sales, if the servicemen who are affected do 
not make written objection to the Department to this 
arrangement.
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23; 
103-363, eff. 7-28-23; revised 9-25-23.)
 
    Section 110-20. The Retailers' Occupation Tax Act is 
amended by changing Section 3 as follows:
 
    (35 ILCS 120/3)  (from Ch. 120, par. 442)
    Sec. 3. Except as provided in this Section, on or before 
the twentieth day of each calendar month, every person engaged 
in the business of selling tangible personal property at 
retail in this State during the preceding calendar month shall 
file a return with the Department, stating:
        1. The name of the seller;
        2. His residence address and the address of his 
    principal place of business and the address of the 
    principal place of business (if that is a different 
    address) from which he engages in the business of selling 
    tangible personal property at retail in this State;
        3. Total amount of receipts received by him during the 
    preceding calendar month or quarter, as the case may be, 
    from sales of tangible personal property, and from 
    services furnished, by him during such preceding calendar 
    month or quarter;
        4. Total amount received by him during the preceding 
    calendar month or quarter on charge and time sales of 
    tangible personal property, and from services furnished, 
    by him prior to the month or quarter for which the return 
    is filed;
        5. Deductions allowed by law;
        6. Gross receipts which were received by him during 
    the preceding calendar month or quarter and upon the basis 
    of which the tax is imposed, including gross receipts on 
    food for human consumption that is to be consumed off the 
    premises where it is sold (other than alcoholic beverages, 
    food consisting of or infused with adult use cannabis, 
    soft drinks, and food that has been prepared for immediate 
    consumption) which were received during the preceding 
    calendar month or quarter and upon which tax would have 
    been due but for the 0% rate imposed under Public Act 
    102-700;
        7. The amount of credit provided in Section 2d of this 
    Act;
        8. The amount of tax due, including the amount of tax 
    that would have been due on food for human consumption 
    that is to be consumed off the premises where it is sold 
    (other than alcoholic beverages, food consisting of or 
    infused with adult use cannabis, soft drinks, and food 
    that has been prepared for immediate consumption) but for 
    the 0% rate imposed under Public Act 102-700;
        9. The signature of the taxpayer; and
        10. Such other reasonable information as the 
    Department may require.
    On and after January 1, 2018, except for returns required 
to be filed prior to January 1, 2023 for motor vehicles, 
watercraft, aircraft, and trailers that are required to be 
registered with an agency of this State, with respect to 
retailers whose annual gross receipts average $20,000 or more, 
all returns required to be filed pursuant to this Act shall be 
filed electronically. On and after January 1, 2023, with 
respect to retailers whose annual gross receipts average 
$20,000 or more, all returns required to be filed pursuant to 
this Act, including, but not limited to, returns for motor 
vehicles, watercraft, aircraft, and trailers that are required 
to be registered with an agency of this State, shall be filed 
electronically. Retailers who demonstrate that they do not 
have access to the Internet or demonstrate hardship in filing 
electronically may petition the Department to waive the 
electronic filing requirement. 
    If a taxpayer fails to sign a return within 30 days after 
the proper notice and demand for signature by the Department, 
the return shall be considered valid and any amount shown to be 
due on the return shall be deemed assessed.
    Each return shall be accompanied by the statement of 
prepaid tax issued pursuant to Section 2e for which credit is 
claimed.
    Prior to October 1, 2003, and on and after September 1, 
2004, a retailer may accept a Manufacturer's Purchase Credit 
certification from a purchaser in satisfaction of Use Tax as 
provided in Section 3-85 of the Use Tax Act if the purchaser 
provides the appropriate documentation as required by Section 
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit 
certification, accepted by a retailer prior to October 1, 2003 
and on and after September 1, 2004 as provided in Section 3-85 
of the Use Tax Act, may be used by that retailer to satisfy 
Retailers' Occupation Tax liability in the amount claimed in 
the certification, not to exceed 6.25% of the receipts subject 
to tax from a qualifying purchase. A Manufacturer's Purchase 
Credit reported on any original or amended return filed under 
this Act after October 20, 2003 for reporting periods prior to 
September 1, 2004 shall be disallowed. Manufacturer's Purchase 
Credit reported on annual returns due on or after January 1, 
2005 will be disallowed for periods prior to September 1, 
2004. No Manufacturer's Purchase Credit may be used after 
September 30, 2003 through August 31, 2004 to satisfy any tax 
liability imposed under this Act, including any audit 
liability.
    Beginning on July 1, 2023 and through December 31, 2032, a 
retailer may accept a Sustainable Aviation Fuel Purchase 
Credit certification from an air common carrier-purchaser in 
satisfaction of Use Tax on aviation fuel as provided in 
Section 3-87 of the Use Tax Act if the purchaser provides the 
appropriate documentation as required by Section 3-87 of the 
Use Tax Act. A Sustainable Aviation Fuel Purchase Credit 
certification accepted by a retailer in accordance with this 
paragraph may be used by that retailer to satisfy Retailers' 
Occupation Tax liability (but not in satisfaction of penalty 
or interest) in the amount claimed in the certification, not 
to exceed 6.25% of the receipts subject to tax from a sale of 
aviation fuel. In addition, for a sale of aviation fuel to 
qualify to earn the Sustainable Aviation Fuel Purchase Credit, 
retailers must retain in their books and records a 
certification from the producer of the aviation fuel that the 
aviation fuel sold by the retailer and for which a sustainable 
aviation fuel purchase credit was earned meets the definition 
of sustainable aviation fuel under Section 3-87 of the Use Tax 
Act. The documentation must include detail sufficient for the 
Department to determine the number of gallons of sustainable 
aviation fuel sold. 
    The Department may require returns to be filed on a 
quarterly basis. If so required, a return for each calendar 
quarter shall be filed on or before the twentieth day of the 
calendar month following the end of such calendar quarter. The 
taxpayer shall also file a return with the Department for each 
of the first 2 two months of each calendar quarter, on or 
before the twentieth day of the following calendar month, 
stating:
        1. The name of the seller;
        2. The address of the principal place of business from 
    which he engages in the business of selling tangible 
    personal property at retail in this State;
        3. The total amount of taxable receipts received by 
    him during the preceding calendar month from sales of 
    tangible personal property by him during such preceding 
    calendar month, including receipts from charge and time 
    sales, but less all deductions allowed by law;
        4. The amount of credit provided in Section 2d of this 
    Act;
        5. The amount of tax due; and
        6. Such other reasonable information as the Department 
    may require.
    Every person engaged in the business of selling aviation 
fuel at retail in this State during the preceding calendar 
month shall, instead of reporting and paying tax as otherwise 
required by this Section, report and pay such tax on a separate 
aviation fuel tax return. The requirements related to the 
return shall be as otherwise provided in this Section. 
Notwithstanding any other provisions of this Act to the 
contrary, retailers selling aviation fuel shall file all 
aviation fuel tax returns and shall make all aviation fuel tax 
payments by electronic means in the manner and form required 
by the Department. For purposes of this Section, "aviation 
fuel" means jet fuel and aviation gasoline. 
    Beginning on October 1, 2003, any person who is not a 
licensed distributor, importing distributor, or manufacturer, 
as defined in the Liquor Control Act of 1934, but is engaged in 
the business of selling, at retail, alcoholic liquor shall 
file a statement with the Department of Revenue, in a format 
and at a time prescribed by the Department, showing the total 
amount paid for alcoholic liquor purchased during the 
preceding month and such other information as is reasonably 
required by the Department. The Department may adopt rules to 
require that this statement be filed in an electronic or 
telephonic format. Such rules may provide for exceptions from 
the filing requirements of this paragraph. For the purposes of 
this paragraph, the term "alcoholic liquor" shall have the 
meaning prescribed in the Liquor Control Act of 1934.
    Beginning on October 1, 2003, every distributor, importing 
distributor, and manufacturer of alcoholic liquor as defined 
in the Liquor Control Act of 1934, shall file a statement with 
the Department of Revenue, no later than the 10th day of the 
month for the preceding month during which transactions 
occurred, by electronic means, showing the total amount of 
gross receipts from the sale of alcoholic liquor sold or 
distributed during the preceding month to purchasers; 
identifying the purchaser to whom it was sold or distributed; 
the purchaser's tax registration number; and such other 
information reasonably required by the Department. A 
distributor, importing distributor, or manufacturer of 
alcoholic liquor must personally deliver, mail, or provide by 
electronic means to each retailer listed on the monthly 
statement a report containing a cumulative total of that 
distributor's, importing distributor's, or manufacturer's 
total sales of alcoholic liquor to that retailer no later than 
the 10th day of the month for the preceding month during which 
the transaction occurred. The distributor, importing 
distributor, or manufacturer shall notify the retailer as to 
the method by which the distributor, importing distributor, or 
manufacturer will provide the sales information. If the 
retailer is unable to receive the sales information by 
electronic means, the distributor, importing distributor, or 
manufacturer shall furnish the sales information by personal 
delivery or by mail. For purposes of this paragraph, the term 
"electronic means" includes, but is not limited to, the use of 
a secure Internet website, e-mail, or facsimile.
    If a total amount of less than $1 is payable, refundable or 
creditable, such amount shall be disregarded if it is less 
than 50 cents and shall be increased to $1 if it is 50 cents or 
more.
    Notwithstanding any other provision of this Act to the 
contrary, retailers subject to tax on cannabis shall file all 
cannabis tax returns and shall make all cannabis tax payments 
by electronic means in the manner and form required by the 
Department.
    Beginning October 1, 1993, a taxpayer who has an average 
monthly tax liability of $150,000 or more shall make all 
payments required by rules of the Department by electronic 
funds transfer. Beginning October 1, 1994, a taxpayer who has 
an average monthly tax liability of $100,000 or more shall 
make all payments required by rules of the Department by 
electronic funds transfer. Beginning October 1, 1995, a 
taxpayer who has an average monthly tax liability of $50,000 
or more shall make all payments required by rules of the 
Department by electronic funds transfer. Beginning October 1, 
2000, a taxpayer who has an annual tax liability of $200,000 or 
more shall make all payments required by rules of the 
Department by electronic funds transfer. The term "annual tax 
liability" shall be the sum of the taxpayer's liabilities 
under this Act, and under all other State and local occupation 
and use tax laws administered by the Department, for the 
immediately preceding calendar year. The term "average monthly 
tax liability" shall be the sum of the taxpayer's liabilities 
under this Act, and under all other State and local occupation 
and use tax laws administered by the Department, for the 
immediately preceding calendar year divided by 12. Beginning 
on October 1, 2002, a taxpayer who has a tax liability in the 
amount set forth in subsection (b) of Section 2505-210 of the 
Department of Revenue Law shall make all payments required by 
rules of the Department by electronic funds transfer.
    Before August 1 of each year beginning in 1993, the 
Department shall notify all taxpayers required to make 
payments by electronic funds transfer. All taxpayers required 
to make payments by electronic funds transfer shall make those 
payments for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic 
funds transfer may make payments by electronic funds transfer 
with the permission of the Department.
    All taxpayers required to make payment by electronic funds 
transfer and any taxpayers authorized to voluntarily make 
payments by electronic funds transfer shall make those 
payments in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to 
effectuate a program of electronic funds transfer and the 
requirements of this Section.
    Any amount which is required to be shown or reported on any 
return or other document under this Act shall, if such amount 
is not a whole-dollar amount, be increased to the nearest 
whole-dollar amount in any case where the fractional part of a 
dollar is 50 cents or more, and decreased to the nearest 
whole-dollar amount where the fractional part of a dollar is 
less than 50 cents.
    If the retailer is otherwise required to file a monthly 
return and if the retailer's average monthly tax liability to 
the Department does not exceed $200, the Department may 
authorize his returns to be filed on a quarter annual basis, 
with the return for January, February, and March of a given 
year being due by April 20 of such year; with the return for 
April, May, and June of a given year being due by July 20 of 
such year; with the return for July, August, and September of a 
given year being due by October 20 of such year, and with the 
return for October, November, and December of a given year 
being due by January 20 of the following year.
    If the retailer is otherwise required to file a monthly or 
quarterly return and if the retailer's average monthly tax 
liability with the Department does not exceed $50, the 
Department may authorize his returns to be filed on an annual 
basis, with the return for a given year being due by January 20 
of the following year.
    Such quarter annual and annual returns, as to form and 
substance, shall be subject to the same requirements as 
monthly returns.
    Notwithstanding any other provision in this Act concerning 
the time within which a retailer may file his return, in the 
case of any retailer who ceases to engage in a kind of business 
which makes him responsible for filing returns under this Act, 
such retailer shall file a final return under this Act with the 
Department not more than one month after discontinuing such 
business.
    Where the same person has more than one business 
registered with the Department under separate registrations 
under this Act, such person may not file each return that is 
due as a single return covering all such registered 
businesses, but shall file separate returns for each such 
registered business.
    In addition, with respect to motor vehicles, watercraft, 
aircraft, and trailers that are required to be registered with 
an agency of this State, except as otherwise provided in this 
Section, every retailer selling this kind of tangible personal 
property shall file, with the Department, upon a form to be 
prescribed and supplied by the Department, a separate return 
for each such item of tangible personal property which the 
retailer sells, except that if, in the same transaction, (i) a 
retailer of aircraft, watercraft, motor vehicles, or trailers 
transfers more than one aircraft, watercraft, motor vehicle, 
or trailer to another aircraft, watercraft, motor vehicle 
retailer, or trailer retailer for the purpose of resale or 
(ii) a retailer of aircraft, watercraft, motor vehicles, or 
trailers transfers more than one aircraft, watercraft, motor 
vehicle, or trailer to a purchaser for use as a qualifying 
rolling stock as provided in Section 2-5 of this Act, then that 
seller may report the transfer of all aircraft, watercraft, 
motor vehicles, or trailers involved in that transaction to 
the Department on the same uniform invoice-transaction 
reporting return form. For purposes of this Section, 
"watercraft" means a Class 2, Class 3, or Class 4 watercraft as 
defined in Section 3-2 of the Boat Registration and Safety 
Act, a personal watercraft, or any boat equipped with an 
inboard motor.
    In addition, with respect to motor vehicles, watercraft, 
aircraft, and trailers that are required to be registered with 
an agency of this State, every person who is engaged in the 
business of leasing or renting such items and who, in 
connection with such business, sells any such item to a 
retailer for the purpose of resale is, notwithstanding any 
other provision of this Section to the contrary, authorized to 
meet the return-filing requirement of this Act by reporting 
the transfer of all the aircraft, watercraft, motor vehicles, 
or trailers transferred for resale during a month to the 
Department on the same uniform invoice-transaction reporting 
return form on or before the 20th of the month following the 
month in which the transfer takes place. Notwithstanding any 
other provision of this Act to the contrary, all returns filed 
under this paragraph must be filed by electronic means in the 
manner and form as required by the Department. 
    Any retailer who sells only motor vehicles, watercraft, 
aircraft, or trailers that are required to be registered with 
an agency of this State, so that all retailers' occupation tax 
liability is required to be reported, and is reported, on such 
transaction reporting returns and who is not otherwise 
required to file monthly or quarterly returns, need not file 
monthly or quarterly returns. However, those retailers shall 
be required to file returns on an annual basis.
    The transaction reporting return, in the case of motor 
vehicles or trailers that are required to be registered with 
an agency of this State, shall be the same document as the 
Uniform Invoice referred to in Section 5-402 of the Illinois 
Vehicle Code and must show the name and address of the seller; 
the name and address of the purchaser; the amount of the 
selling price including the amount allowed by the retailer for 
traded-in property, if any; the amount allowed by the retailer 
for the traded-in tangible personal property, if any, to the 
extent to which Section 1 of this Act allows an exemption for 
the value of traded-in property; the balance payable after 
deducting such trade-in allowance from the total selling 
price; the amount of tax due from the retailer with respect to 
such transaction; the amount of tax collected from the 
purchaser by the retailer on such transaction (or satisfactory 
evidence that such tax is not due in that particular instance, 
if that is claimed to be the fact); the place and date of the 
sale; a sufficient identification of the property sold; such 
other information as is required in Section 5-402 of the 
Illinois Vehicle Code, and such other information as the 
Department may reasonably require.
    The transaction reporting return in the case of watercraft 
or aircraft must show the name and address of the seller; the 
name and address of the purchaser; the amount of the selling 
price including the amount allowed by the retailer for 
traded-in property, if any; the amount allowed by the retailer 
for the traded-in tangible personal property, if any, to the 
extent to which Section 1 of this Act allows an exemption for 
the value of traded-in property; the balance payable after 
deducting such trade-in allowance from the total selling 
price; the amount of tax due from the retailer with respect to 
such transaction; the amount of tax collected from the 
purchaser by the retailer on such transaction (or satisfactory 
evidence that such tax is not due in that particular instance, 
if that is claimed to be the fact); the place and date of the 
sale, a sufficient identification of the property sold, and 
such other information as the Department may reasonably 
require.
    Such transaction reporting return shall be filed not later 
than 20 days after the day of delivery of the item that is 
being sold, but may be filed by the retailer at any time sooner 
than that if he chooses to do so. The transaction reporting 
return and tax remittance or proof of exemption from the 
Illinois use tax may be transmitted to the Department by way of 
the State agency with which, or State officer with whom the 
tangible personal property must be titled or registered (if 
titling or registration is required) if the Department and 
such agency or State officer determine that this procedure 
will expedite the processing of applications for title or 
registration.
    With each such transaction reporting return, the retailer 
shall remit the proper amount of tax due (or shall submit 
satisfactory evidence that the sale is not taxable if that is 
the case), to the Department or its agents, whereupon the 
Department shall issue, in the purchaser's name, a use tax 
receipt (or a certificate of exemption if the Department is 
satisfied that the particular sale is tax exempt) which such 
purchaser may submit to the agency with which, or State 
officer with whom, he must title or register the tangible 
personal property that is involved (if titling or registration 
is required) in support of such purchaser's application for an 
Illinois certificate or other evidence of title or 
registration to such tangible personal property.
    No retailer's failure or refusal to remit tax under this 
Act precludes a user, who has paid the proper tax to the 
retailer, from obtaining his certificate of title or other 
evidence of title or registration (if titling or registration 
is required) upon satisfying the Department that such user has 
paid the proper tax (if tax is due) to the retailer. The 
Department shall adopt appropriate rules to carry out the 
mandate of this paragraph.
    If the user who would otherwise pay tax to the retailer 
wants the transaction reporting return filed and the payment 
of the tax or proof of exemption made to the Department before 
the retailer is willing to take these actions and such user has 
not paid the tax to the retailer, such user may certify to the 
fact of such delay by the retailer and may (upon the Department 
being satisfied of the truth of such certification) transmit 
the information required by the transaction reporting return 
and the remittance for tax or proof of exemption directly to 
the Department and obtain his tax receipt or exemption 
determination, in which event the transaction reporting return 
and tax remittance (if a tax payment was required) shall be 
credited by the Department to the proper retailer's account 
with the Department, but without the vendor's 2.1% or 1.75% 
discount provided for in this Section being allowed. When the 
user pays the tax directly to the Department, he shall pay the 
tax in the same amount and in the same form in which it would 
be remitted if the tax had been remitted to the Department by 
the retailer.
    Refunds made by the seller during the preceding return 
period to purchasers, on account of tangible personal property 
returned to the seller, shall be allowed as a deduction under 
subdivision 5 of his monthly or quarterly return, as the case 
may be, in case the seller had theretofore included the 
receipts from the sale of such tangible personal property in a 
return filed by him and had paid the tax imposed by this Act 
with respect to such receipts.
    Where the seller is a corporation, the return filed on 
behalf of such corporation shall be signed by the president, 
vice-president, secretary, or treasurer or by the properly 
accredited agent of such corporation.
    Where the seller is a limited liability company, the 
return filed on behalf of the limited liability company shall 
be signed by a manager, member, or properly accredited agent 
of the limited liability company.
    Except as provided in this Section, the retailer filing 
the return under this Section shall, at the time of filing such 
return, pay to the Department the amount of tax imposed by this 
Act less a discount of 2.1% prior to January 1, 1990 and 1.75% 
on and after January 1, 1990, or $5 per calendar year, 
whichever is greater, which is allowed to reimburse the 
retailer for the expenses incurred in keeping records, 
preparing and filing returns, remitting the tax and supplying 
data to the Department on request. On and after January 1, 
2021, a certified service provider, as defined in the Leveling 
the Playing Field for Illinois Retail Act, filing the return 
under this Section on behalf of a remote retailer shall, at the 
time of such return, pay to the Department the amount of tax 
imposed by this Act less a discount of 1.75%. A remote retailer 
using a certified service provider to file a return on its 
behalf, as provided in the Leveling the Playing Field for 
Illinois Retail Act, is not eligible for the discount. 
Beginning with returns due on or after January 1, 2025, the 
vendor's discount allowed in this Section, the Service 
Occupation Tax Act, the Use Tax Act, and the Service Use Tax 
Act, including any local tax administered by the Department 
and reported on the same return, shall not exceed $1,000 per 
month in the aggregate for returns other than transaction 
returns filed during the month. When determining the discount 
allowed under this Section, retailers shall include the amount 
of tax that would have been due at the 1% rate but for the 0% 
rate imposed under Public Act 102-700. When determining the 
discount allowed under this Section, retailers shall include 
the amount of tax that would have been due at the 6.25% rate 
but for the 1.25% rate imposed on sales tax holiday items under 
Public Act 102-700. The discount under this Section is not 
allowed for the 1.25% portion of taxes paid on aviation fuel 
that is subject to the revenue use requirements of 49 U.S.C. 
47107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to 
Section 2d of this Act shall be included in the amount on which 
such 2.1% or 1.75% discount is computed. In the case of 
retailers who report and pay the tax on a transaction by 
transaction basis, as provided in this Section, such discount 
shall be taken with each such tax remittance instead of when 
such retailer files his periodic return, but, beginning with 
returns due on or after January 1, 2025, the vendor's discount 
allowed under this Section and the Use Tax Act, including any 
local tax administered by the Department and reported on the 
same transaction return, shall not exceed $1,000 per month for 
all transaction returns filed during the month. The discount 
allowed under this Section is allowed only for returns that 
are filed in the manner required by this Act. The Department 
may disallow the discount for retailers whose certificate of 
registration is revoked at the time the return is filed, but 
only if the Department's decision to revoke the certificate of 
registration has become final. 
    Before October 1, 2000, if the taxpayer's average monthly 
tax liability to the Department under this Act, the Use Tax 
Act, the Service Occupation Tax Act, and the Service Use Tax 
Act, excluding any liability for prepaid sales tax to be 
remitted in accordance with Section 2d of this Act, was 
$10,000 or more during the preceding 4 complete calendar 
quarters, he shall file a return with the Department each 
month by the 20th day of the month next following the month 
during which such tax liability is incurred and shall make 
payments to the Department on or before the 7th, 15th, 22nd and 
last day of the month during which such liability is incurred. 
On and after October 1, 2000, if the taxpayer's average 
monthly tax liability to the Department under this Act, the 
Use Tax Act, the Service Occupation Tax Act, and the Service 
Use Tax Act, excluding any liability for prepaid sales tax to 
be remitted in accordance with Section 2d of this Act, was 
$20,000 or more during the preceding 4 complete calendar 
quarters, he shall file a return with the Department each 
month by the 20th day of the month next following the month 
during which such tax liability is incurred and shall make 
payment to the Department on or before the 7th, 15th, 22nd and 
last day of the month during which such liability is incurred. 
If the month during which such tax liability is incurred began 
prior to January 1, 1985, each payment shall be in an amount 
equal to 1/4 of the taxpayer's actual liability for the month 
or an amount set by the Department not to exceed 1/4 of the 
average monthly liability of the taxpayer to the Department 
for the preceding 4 complete calendar quarters (excluding the 
month of highest liability and the month of lowest liability 
in such 4 quarter period). If the month during which such tax 
liability is incurred begins on or after January 1, 1985 and 
prior to January 1, 1987, each payment shall be in an amount 
equal to 22.5% of the taxpayer's actual liability for the 
month or 27.5% of the taxpayer's liability for the same 
calendar month of the preceding year. If the month during 
which such tax liability is incurred begins on or after 
January 1, 1987 and prior to January 1, 1988, each payment 
shall be in an amount equal to 22.5% of the taxpayer's actual 
liability for the month or 26.25% of the taxpayer's liability 
for the same calendar month of the preceding year. If the month 
during which such tax liability is incurred begins on or after 
January 1, 1988, and prior to January 1, 1989, or begins on or 
after January 1, 1996, each payment shall be in an amount equal 
to 22.5% of the taxpayer's actual liability for the month or 
25% of the taxpayer's liability for the same calendar month of 
the preceding year. If the month during which such tax 
liability is incurred begins on or after January 1, 1989, and 
prior to January 1, 1996, each payment shall be in an amount 
equal to 22.5% of the taxpayer's actual liability for the 
month or 25% of the taxpayer's liability for the same calendar 
month of the preceding year or 100% of the taxpayer's actual 
liability for the quarter monthly reporting period. The amount 
of such quarter monthly payments shall be credited against the 
final tax liability of the taxpayer's return for that month. 
Before October 1, 2000, once applicable, the requirement of 
the making of quarter monthly payments to the Department by 
taxpayers having an average monthly tax liability of $10,000 
or more as determined in the manner provided above shall 
continue until such taxpayer's average monthly liability to 
the Department during the preceding 4 complete calendar 
quarters (excluding the month of highest liability and the 
month of lowest liability) is less than $9,000, or until such 
taxpayer's average monthly liability to the Department as 
computed for each calendar quarter of the 4 preceding complete 
calendar quarter period is less than $10,000. However, if a 
taxpayer can show the Department that a substantial change in 
the taxpayer's business has occurred which causes the taxpayer 
to anticipate that his average monthly tax liability for the 
reasonably foreseeable future will fall below the $10,000 
threshold stated above, then such taxpayer may petition the 
Department for a change in such taxpayer's reporting status. 
On and after October 1, 2000, once applicable, the requirement 
of the making of quarter monthly payments to the Department by 
taxpayers having an average monthly tax liability of $20,000 
or more as determined in the manner provided above shall 
continue until such taxpayer's average monthly liability to 
the Department during the preceding 4 complete calendar 
quarters (excluding the month of highest liability and the 
month of lowest liability) is less than $19,000 or until such 
taxpayer's average monthly liability to the Department as 
computed for each calendar quarter of the 4 preceding complete 
calendar quarter period is less than $20,000. However, if a 
taxpayer can show the Department that a substantial change in 
the taxpayer's business has occurred which causes the taxpayer 
to anticipate that his average monthly tax liability for the 
reasonably foreseeable future will fall below the $20,000 
threshold stated above, then such taxpayer may petition the 
Department for a change in such taxpayer's reporting status. 
The Department shall change such taxpayer's reporting status 
unless it finds that such change is seasonal in nature and not 
likely to be long term. Quarter monthly payment status shall 
be determined under this paragraph as if the rate reduction to 
0% in Public Act 102-700 on food for human consumption that is 
to be consumed off the premises where it is sold (other than 
alcoholic beverages, food consisting of or infused with adult 
use cannabis, soft drinks, and food that has been prepared for 
immediate consumption) had not occurred. For quarter monthly 
payments due under this paragraph on or after July 1, 2023 and 
through June 30, 2024, "25% of the taxpayer's liability for 
the same calendar month of the preceding year" shall be 
determined as if the rate reduction to 0% in Public Act 102-700 
had not occurred. Quarter monthly payment status shall be 
determined under this paragraph as if the rate reduction to 
1.25% in Public Act 102-700 on sales tax holiday items had not 
occurred. For quarter monthly payments due on or after July 1, 
2023 and through June 30, 2024, "25% of the taxpayer's 
liability for the same calendar month of the preceding year" 
shall be determined as if the rate reduction to 1.25% in Public 
Act 102-700 on sales tax holiday items had not occurred. If any 
such quarter monthly payment is not paid at the time or in the 
amount required by this Section, then the taxpayer shall be 
liable for penalties and interest on the difference between 
the minimum amount due as a payment and the amount of such 
quarter monthly payment actually and timely paid, except 
insofar as the taxpayer has previously made payments for that 
month to the Department in excess of the minimum payments 
previously due as provided in this Section. The Department 
shall make reasonable rules and regulations to govern the 
quarter monthly payment amount and quarter monthly payment 
dates for taxpayers who file on other than a calendar monthly 
basis.
    The provisions of this paragraph apply before October 1, 
2001. Without regard to whether a taxpayer is required to make 
quarter monthly payments as specified above, any taxpayer who 
is required by Section 2d of this Act to collect and remit 
prepaid taxes and has collected prepaid taxes which average in 
excess of $25,000 per month during the preceding 2 complete 
calendar quarters, shall file a return with the Department as 
required by Section 2f and shall make payments to the 
Department on or before the 7th, 15th, 22nd and last day of the 
month during which such liability is incurred. If the month 
during which such tax liability is incurred began prior to 
September 1, 1985 (the effective date of Public Act 84-221), 
each payment shall be in an amount not less than 22.5% of the 
taxpayer's actual liability under Section 2d. If the month 
during which such tax liability is incurred begins on or after 
January 1, 1986, each payment shall be in an amount equal to 
22.5% of the taxpayer's actual liability for the month or 
27.5% of the taxpayer's liability for the same calendar month 
of the preceding calendar year. If the month during which such 
tax liability is incurred begins on or after January 1, 1987, 
each payment shall be in an amount equal to 22.5% of the 
taxpayer's actual liability for the month or 26.25% of the 
taxpayer's liability for the same calendar month of the 
preceding year. The amount of such quarter monthly payments 
shall be credited against the final tax liability of the 
taxpayer's return for that month filed under this Section or 
Section 2f, as the case may be. Once applicable, the 
requirement of the making of quarter monthly payments to the 
Department pursuant to this paragraph shall continue until 
such taxpayer's average monthly prepaid tax collections during 
the preceding 2 complete calendar quarters is $25,000 or less. 
If any such quarter monthly payment is not paid at the time or 
in the amount required, the taxpayer shall be liable for 
penalties and interest on such difference, except insofar as 
the taxpayer has previously made payments for that month in 
excess of the minimum payments previously due.
    The provisions of this paragraph apply on and after 
October 1, 2001. Without regard to whether a taxpayer is 
required to make quarter monthly payments as specified above, 
any taxpayer who is required by Section 2d of this Act to 
collect and remit prepaid taxes and has collected prepaid 
taxes that average in excess of $20,000 per month during the 
preceding 4 complete calendar quarters shall file a return 
with the Department as required by Section 2f and shall make 
payments to the Department on or before the 7th, 15th, 22nd, 
and last day of the month during which the liability is 
incurred. Each payment shall be in an amount equal to 22.5% of 
the taxpayer's actual liability for the month or 25% of the 
taxpayer's liability for the same calendar month of the 
preceding year. The amount of the quarter monthly payments 
shall be credited against the final tax liability of the 
taxpayer's return for that month filed under this Section or 
Section 2f, as the case may be. Once applicable, the 
requirement of the making of quarter monthly payments to the 
Department pursuant to this paragraph shall continue until the 
taxpayer's average monthly prepaid tax collections during the 
preceding 4 complete calendar quarters (excluding the month of 
highest liability and the month of lowest liability) is less 
than $19,000 or until such taxpayer's average monthly 
liability to the Department as computed for each calendar 
quarter of the 4 preceding complete calendar quarters is less 
than $20,000. If any such quarter monthly payment is not paid 
at the time or in the amount required, the taxpayer shall be 
liable for penalties and interest on such difference, except 
insofar as the taxpayer has previously made payments for that 
month in excess of the minimum payments previously due.
    If any payment provided for in this Section exceeds the 
taxpayer's liabilities under this Act, the Use Tax Act, the 
Service Occupation Tax Act, and the Service Use Tax Act, as 
shown on an original monthly return, the Department shall, if 
requested by the taxpayer, issue to the taxpayer a credit 
memorandum no later than 30 days after the date of payment. The 
credit evidenced by such credit memorandum may be assigned by 
the taxpayer to a similar taxpayer under this Act, the Use Tax 
Act, the Service Occupation Tax Act, or the Service Use Tax 
Act, in accordance with reasonable rules and regulations to be 
prescribed by the Department. If no such request is made, the 
taxpayer may credit such excess payment against tax liability 
subsequently to be remitted to the Department under this Act, 
the Use Tax Act, the Service Occupation Tax Act, or the Service 
Use Tax Act, in accordance with reasonable rules and 
regulations prescribed by the Department. If the Department 
subsequently determined that all or any part of the credit 
taken was not actually due to the taxpayer, the taxpayer's 
2.1% and 1.75% vendor's discount shall be reduced, if 
necessary, to reflect by 2.1% or 1.75% of the difference 
between the credit taken and that actually due, and that 
taxpayer shall be liable for penalties and interest on such 
difference.
    If a retailer of motor fuel is entitled to a credit under 
Section 2d of this Act which exceeds the taxpayer's liability 
to the Department under this Act for the month for which the 
taxpayer is filing a return, the Department shall issue the 
taxpayer a credit memorandum for the excess.
    Beginning January 1, 1990, each month the Department shall 
pay into the Local Government Tax Fund, a special fund in the 
State treasury which is hereby created, the net revenue 
realized for the preceding month from the 1% tax imposed under 
this Act.
    Beginning January 1, 1990, each month the Department shall 
pay into the County and Mass Transit District Fund, a special 
fund in the State treasury which is hereby created, 4% of the 
net revenue realized for the preceding month from the 6.25% 
general rate other than aviation fuel sold on or after 
December 1, 2019. This exception for aviation fuel only 
applies for so long as the revenue use requirements of 49 
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
    Beginning August 1, 2000, each month the Department shall 
pay into the County and Mass Transit District Fund 20% of the 
net revenue realized for the preceding month from the 1.25% 
rate on the selling price of motor fuel and gasohol. If, in any 
month, the tax on sales tax holiday items, as defined in 
Section 2-8, is imposed at the rate of 1.25%, then the 
Department shall pay 20% of the net revenue realized for that 
month from the 1.25% rate on the selling price of sales tax 
holiday items into the County and Mass Transit District Fund.
    Beginning January 1, 1990, each month the Department shall 
pay into the Local Government Tax Fund 16% of the net revenue 
realized for the preceding month from the 6.25% general rate 
on the selling price of tangible personal property other than 
aviation fuel sold on or after December 1, 2019. This 
exception for aviation fuel only applies for so long as the 
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
47133 are binding on the State.
    For aviation fuel sold on or after December 1, 2019, each 
month the Department shall pay into the State Aviation Program 
Fund 20% of the net revenue realized for the preceding month 
from the 6.25% general rate on the selling price of aviation 
fuel, less an amount estimated by the Department to be 
required for refunds of the 20% portion of the tax on aviation 
fuel under this Act, which amount shall be deposited into the 
Aviation Fuel Sales Tax Refund Fund. The Department shall only 
pay moneys into the State Aviation Program Fund and the 
Aviation Fuel Sales Tax Refund Fund under this Act for so long 
as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
U.S.C. 47133 are binding on the State. 
    Beginning August 1, 2000, each month the Department shall 
pay into the Local Government Tax Fund 80% of the net revenue 
realized for the preceding month from the 1.25% rate on the 
selling price of motor fuel and gasohol. If, in any month, the 
tax on sales tax holiday items, as defined in Section 2-8, is 
imposed at the rate of 1.25%, then the Department shall pay 80% 
of the net revenue realized for that month from the 1.25% rate 
on the selling price of sales tax holiday items into the Local 
Government Tax Fund.
    Beginning October 1, 2009, each month the Department shall 
pay into the Capital Projects Fund an amount that is equal to 
an amount estimated by the Department to represent 80% of the 
net revenue realized for the preceding month from the sale of 
candy, grooming and hygiene products, and soft drinks that had 
been taxed at a rate of 1% prior to September 1, 2009 but that 
are now taxed at 6.25%. 
    Beginning July 1, 2011, each month the Department shall 
pay into the Clean Air Act Permit Fund 80% of the net revenue 
realized for the preceding month from the 6.25% general rate 
on the selling price of sorbents used in Illinois in the 
process of sorbent injection as used to comply with the 
Environmental Protection Act or the federal Clean Air Act, but 
the total payment into the Clean Air Act Permit Fund under this 
Act and the Use Tax Act shall not exceed $2,000,000 in any 
fiscal year. 
    Beginning July 1, 2013, each month the Department shall 
pay into the Underground Storage Tank Fund from the proceeds 
collected under this Act, the Use Tax Act, the Service Use Tax 
Act, and the Service Occupation Tax Act an amount equal to the 
average monthly deficit in the Underground Storage Tank Fund 
during the prior year, as certified annually by the Illinois 
Environmental Protection Agency, but the total payment into 
the Underground Storage Tank Fund under this Act, the Use Tax 
Act, the Service Use Tax Act, and the Service Occupation Tax 
Act shall not exceed $18,000,000 in any State fiscal year. As 
used in this paragraph, the "average monthly deficit" shall be 
equal to the difference between the average monthly claims for 
payment by the fund and the average monthly revenues deposited 
into the fund, excluding payments made pursuant to this 
paragraph. 
    Beginning July 1, 2015, of the remainder of the moneys 
received by the Department under the Use Tax Act, the Service 
Use Tax Act, the Service Occupation Tax Act, and this Act, each 
month the Department shall deposit $500,000 into the State 
Crime Laboratory Fund. 
    Of the remainder of the moneys received by the Department 
pursuant to this Act, (a) 1.75% thereof shall be paid into the 
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 
and after July 1, 1989, 3.8% thereof shall be paid into the 
Build Illinois Fund; provided, however, that if in any fiscal 
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case 
may be, of the moneys received by the Department and required 
to be paid into the Build Illinois Fund pursuant to this Act, 
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax 
Act, and Section 9 of the Service Occupation Tax Act, such Acts 
being hereinafter called the "Tax Acts" and such aggregate of 
2.2% or 3.8%, as the case may be, of moneys being hereinafter 
called the "Tax Act Amount", and (2) the amount transferred to 
the Build Illinois Fund from the State and Local Sales Tax 
Reform Fund shall be less than the Annual Specified Amount (as 
hereinafter defined), an amount equal to the difference shall 
be immediately paid into the Build Illinois Fund from other 
moneys received by the Department pursuant to the Tax Acts; 
the "Annual Specified Amount" means the amounts specified 
below for fiscal years 1986 through 1993:
Fiscal YearAnnual Specified Amount
1986$54,800,000
1987$76,650,000
1988$80,480,000
1989$88,510,000
1990$115,330,000
1991$145,470,000
1992$182,730,000
1993$206,520,000;
and means the Certified Annual Debt Service Requirement (as 
defined in Section 13 of the Build Illinois Bond Act) or the 
Tax Act Amount, whichever is greater, for fiscal year 1994 and 
each fiscal year thereafter; and further provided, that if on 
the last business day of any month the sum of (1) the Tax Act 
Amount required to be deposited into the Build Illinois Bond 
Account in the Build Illinois Fund during such month and (2) 
the amount transferred to the Build Illinois Fund from the 
State and Local Sales Tax Reform Fund shall have been less than 
1/12 of the Annual Specified Amount, an amount equal to the 
difference shall be immediately paid into the Build Illinois 
Fund from other moneys received by the Department pursuant to 
the Tax Acts; and, further provided, that in no event shall the 
payments required under the preceding proviso result in 
aggregate payments into the Build Illinois Fund pursuant to 
this clause (b) for any fiscal year in excess of the greater of 
(i) the Tax Act Amount or (ii) the Annual Specified Amount for 
such fiscal year. The amounts payable into the Build Illinois 
Fund under clause (b) of the first sentence in this paragraph 
shall be payable only until such time as the aggregate amount 
on deposit under each trust indenture securing Bonds issued 
and outstanding pursuant to the Build Illinois Bond Act is 
sufficient, taking into account any future investment income, 
to fully provide, in accordance with such indenture, for the 
defeasance of or the payment of the principal of, premium, if 
any, and interest on the Bonds secured by such indenture and on 
any Bonds expected to be issued thereafter and all fees and 
costs payable with respect thereto, all as certified by the 
Director of the Bureau of the Budget (now Governor's Office of 
Management and Budget). If on the last business day of any 
month in which Bonds are outstanding pursuant to the Build 
Illinois Bond Act, the aggregate of moneys deposited in the 
Build Illinois Bond Account in the Build Illinois Fund in such 
month shall be less than the amount required to be transferred 
in such month from the Build Illinois Bond Account to the Build 
Illinois Bond Retirement and Interest Fund pursuant to Section 
13 of the Build Illinois Bond Act, an amount equal to such 
deficiency shall be immediately paid from other moneys 
received by the Department pursuant to the Tax Acts to the 
Build Illinois Fund; provided, however, that any amounts paid 
to the Build Illinois Fund in any fiscal year pursuant to this 
sentence shall be deemed to constitute payments pursuant to 
clause (b) of the first sentence of this paragraph and shall 
reduce the amount otherwise payable for such fiscal year 
pursuant to that clause (b). The moneys received by the 
Department pursuant to this Act and required to be deposited 
into the Build Illinois Fund are subject to the pledge, claim 
and charge set forth in Section 12 of the Build Illinois Bond 
Act.
    Subject to payment of amounts into the Build Illinois Fund 
as provided in the preceding paragraph or in any amendment 
thereto hereafter enacted, the following specified monthly 
installment of the amount requested in the certificate of the 
Chairman of the Metropolitan Pier and Exposition Authority 
provided under Section 8.25f of the State Finance Act, but not 
in excess of sums designated as "Total Deposit", shall be 
deposited in the aggregate from collections under Section 9 of 
the Use Tax Act, Section 9 of the Service Use Tax Act, Section 
9 of the Service Occupation Tax Act, and Section 3 of the 
Retailers' Occupation Tax Act into the McCormick Place 
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
       
2021300,000,000
2022300,000,000
2023300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033375,000,000
2034375,000,000
2035375,000,000
2036450,000,000
and 
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal 
year thereafter, one-eighth of the amount requested in the 
certificate of the Chairman of the Metropolitan Pier and 
Exposition Authority for that fiscal year, less the amount 
deposited into the McCormick Place Expansion Project Fund by 
the State Treasurer in the respective month under subsection 
(g) of Section 13 of the Metropolitan Pier and Exposition 
Authority Act, plus cumulative deficiencies in the deposits 
required under this Section for previous months and years, 
shall be deposited into the McCormick Place Expansion Project 
Fund, until the full amount requested for the fiscal year, but 
not in excess of the amount specified above as "Total 
Deposit", has been deposited.
    Subject to payment of amounts into the Capital Projects 
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, 
and the McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs or in any amendments thereto hereafter 
enacted, for aviation fuel sold on or after December 1, 2019, 
the Department shall each month deposit into the Aviation Fuel 
Sales Tax Refund Fund an amount estimated by the Department to 
be required for refunds of the 80% portion of the tax on 
aviation fuel under this Act. The Department shall only 
deposit moneys into the Aviation Fuel Sales Tax Refund Fund 
under this paragraph for so long as the revenue use 
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
binding on the State. 
    Subject to payment of amounts into the Build Illinois Fund 
and the McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs or in any amendments thereto hereafter 
enacted, beginning July 1, 1993 and ending on September 30, 
2013, the Department shall each month pay into the Illinois 
Tax Increment Fund 0.27% of 80% of the net revenue realized for 
the preceding month from the 6.25% general rate on the selling 
price of tangible personal property.
    Subject to payment of amounts into the Build Illinois 
Fund, the McCormick Place Expansion Project Fund, and the 
Illinois Tax Increment Fund pursuant to the preceding 
paragraphs or in any amendments to this Section hereafter 
enacted, beginning on the first day of the first calendar 
month to occur on or after August 26, 2014 (the effective date 
of Public Act 98-1098), each month, from the collections made 
under Section 9 of the Use Tax Act, Section 9 of the Service 
Use Tax Act, Section 9 of the Service Occupation Tax Act, and 
Section 3 of the Retailers' Occupation Tax Act, the Department 
shall pay into the Tax Compliance and Administration Fund, to 
be used, subject to appropriation, to fund additional auditors 
and compliance personnel at the Department of Revenue, an 
amount equal to 1/12 of 5% of 80% of the cash receipts 
collected during the preceding fiscal year by the Audit Bureau 
of the Department under the Use Tax Act, the Service Use Tax 
Act, the Service Occupation Tax Act, the Retailers' Occupation 
Tax Act, and associated local occupation and use taxes 
administered by the Department. 
    Subject to payments of amounts into the Build Illinois 
Fund, the McCormick Place Expansion Project Fund, the Illinois 
Tax Increment Fund, the Energy Infrastructure Fund, and the 
Tax Compliance and Administration Fund as provided in this 
Section, beginning on July 1, 2018 the Department shall pay 
each month into the Downstate Public Transportation Fund the 
moneys required to be so paid under Section 2-3 of the 
Downstate Public Transportation Act.
    Subject to successful execution and delivery of a 
public-private agreement between the public agency and private 
entity and completion of the civic build, beginning on July 1, 
2023, of the remainder of the moneys received by the 
Department under the Use Tax Act, the Service Use Tax Act, the 
Service Occupation Tax Act, and this Act, the Department shall 
deposit the following specified deposits in the aggregate from 
collections under the Use Tax Act, the Service Use Tax Act, the 
Service Occupation Tax Act, and the Retailers' Occupation Tax 
Act, as required under Section 8.25g of the State Finance Act 
for distribution consistent with the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
The moneys received by the Department pursuant to this Act and 
required to be deposited into the Civic and Transit 
Infrastructure Fund are subject to the pledge, claim and 
charge set forth in Section 25-55 of the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
As used in this paragraph, "civic build", "private entity", 
"public-private agreement", and "public agency" have the 
meanings provided in Section 25-10 of the Public-Private 
Partnership for Civic and Transit Infrastructure Project Act. 
        Fiscal Year.............................Total Deposit
        2024.....................................$200,000,000
        2025....................................$206,000,000 
        2026....................................$212,200,000 
        2027....................................$218,500,000 
        2028....................................$225,100,000 
        2029....................................$288,700,000 
        2030....................................$298,900,000 
        2031....................................$309,300,000 
        2032....................................$320,100,000 
        2033....................................$331,200,000 
        2034....................................$341,200,000 
        2035....................................$351,400,000 
        2036....................................$361,900,000 
        2037....................................$372,800,000 
        2038....................................$384,000,000 
        2039....................................$395,500,000 
        2040....................................$407,400,000 
        2041....................................$419,600,000 
        2042....................................$432,200,000 
        2043....................................$445,100,000 
    Beginning July 1, 2021 and until July 1, 2022, subject to 
the payment of amounts into the County and Mass Transit 
District Fund, the Local Government Tax Fund, the Build 
Illinois Fund, the McCormick Place Expansion Project Fund, the 
Illinois Tax Increment Fund, and the Tax Compliance and 
Administration Fund as provided in this Section, the 
Department shall pay each month into the Road Fund the amount 
estimated to represent 16% of the net revenue realized from 
the taxes imposed on motor fuel and gasohol. Beginning July 1, 
2022 and until July 1, 2023, subject to the payment of amounts 
into the County and Mass Transit District Fund, the Local 
Government Tax Fund, the Build Illinois Fund, the McCormick 
Place Expansion Project Fund, the Illinois Tax Increment Fund, 
and the Tax Compliance and Administration Fund as provided in 
this Section, the Department shall pay each month into the 
Road Fund the amount estimated to represent 32% of the net 
revenue realized from the taxes imposed on motor fuel and 
gasohol. Beginning July 1, 2023 and until July 1, 2024, 
subject to the payment of amounts into the County and Mass 
Transit District Fund, the Local Government Tax Fund, the 
Build Illinois Fund, the McCormick Place Expansion Project 
Fund, the Illinois Tax Increment Fund, and the Tax Compliance 
and Administration Fund as provided in this Section, the 
Department shall pay each month into the Road Fund the amount 
estimated to represent 48% of the net revenue realized from 
the taxes imposed on motor fuel and gasohol. Beginning July 1, 
2024 and until July 1, 2025, subject to the payment of amounts 
into the County and Mass Transit District Fund, the Local 
Government Tax Fund, the Build Illinois Fund, the McCormick 
Place Expansion Project Fund, the Illinois Tax Increment Fund, 
and the Tax Compliance and Administration Fund as provided in 
this Section, the Department shall pay each month into the 
Road Fund the amount estimated to represent 64% of the net 
revenue realized from the taxes imposed on motor fuel and 
gasohol. Beginning on July 1, 2025, subject to the payment of 
amounts into the County and Mass Transit District Fund, the 
Local Government Tax Fund, the Build Illinois Fund, the 
McCormick Place Expansion Project Fund, the Illinois Tax 
Increment Fund, and the Tax Compliance and Administration Fund 
as provided in this Section, the Department shall pay each 
month into the Road Fund the amount estimated to represent 80% 
of the net revenue realized from the taxes imposed on motor 
fuel and gasohol. As used in this paragraph "motor fuel" has 
the meaning given to that term in Section 1.1 of the Motor Fuel 
Tax Law, and "gasohol" has the meaning given to that term in 
Section 3-40 of the Use Tax Act.
    Of the remainder of the moneys received by the Department 
pursuant to this Act, 75% thereof shall be paid into the State 
treasury and 25% shall be reserved in a special account and 
used only for the transfer to the Common School Fund as part of 
the monthly transfer from the General Revenue Fund in 
accordance with Section 8a of the State Finance Act.
    The Department may, upon separate written notice to a 
taxpayer, require the taxpayer to prepare and file with the 
Department on a form prescribed by the Department within not 
less than 60 days after receipt of the notice an annual 
information return for the tax year specified in the notice. 
Such annual return to the Department shall include a statement 
of gross receipts as shown by the retailer's last federal 
Federal income tax return. If the total receipts of the 
business as reported in the federal Federal income tax return 
do not agree with the gross receipts reported to the 
Department of Revenue for the same period, the retailer shall 
attach to his annual return a schedule showing a 
reconciliation of the 2 amounts and the reasons for the 
difference. The retailer's annual return to the Department 
shall also disclose the cost of goods sold by the retailer 
during the year covered by such return, opening and closing 
inventories of such goods for such year, costs of goods used 
from stock or taken from stock and given away by the retailer 
during such year, payroll information of the retailer's 
business during such year and any additional reasonable 
information which the Department deems would be helpful in 
determining the accuracy of the monthly, quarterly, or annual 
returns filed by such retailer as provided for in this 
Section.
    If the annual information return required by this Section 
is not filed when and as required, the taxpayer shall be liable 
as follows:
        (i) Until January 1, 1994, the taxpayer shall be 
    liable for a penalty equal to 1/6 of 1% of the tax due from 
    such taxpayer under this Act during the period to be 
    covered by the annual return for each month or fraction of 
    a month until such return is filed as required, the 
    penalty to be assessed and collected in the same manner as 
    any other penalty provided for in this Act.
        (ii) On and after January 1, 1994, the taxpayer shall 
    be liable for a penalty as described in Section 3-4 of the 
    Uniform Penalty and Interest Act.
    The chief executive officer, proprietor, owner, or highest 
ranking manager shall sign the annual return to certify the 
accuracy of the information contained therein. Any person who 
willfully signs the annual return containing false or 
inaccurate information shall be guilty of perjury and punished 
accordingly. The annual return form prescribed by the 
Department shall include a warning that the person signing the 
return may be liable for perjury.
    The provisions of this Section concerning the filing of an 
annual information return do not apply to a retailer who is not 
required to file an income tax return with the United States 
Government.
    As soon as possible after the first day of each month, upon 
certification of the Department of Revenue, the Comptroller 
shall order transferred and the Treasurer shall transfer from 
the General Revenue Fund to the Motor Fuel Tax Fund an amount 
equal to 1.7% of 80% of the net revenue realized under this Act 
for the second preceding month. Beginning April 1, 2000, this 
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue 
collected by the State pursuant to this Act, less the amount 
paid out during that month as refunds to taxpayers for 
overpayment of liability.
    For greater simplicity of administration, manufacturers, 
importers and wholesalers whose products are sold at retail in 
Illinois by numerous retailers, and who wish to do so, may 
assume the responsibility for accounting and paying to the 
Department all tax accruing under this Act with respect to 
such sales, if the retailers who are affected do not make 
written objection to the Department to this arrangement.
    Any person who promotes, organizes, or provides retail 
selling space for concessionaires or other types of sellers at 
the Illinois State Fair, DuQuoin State Fair, county fairs, 
local fairs, art shows, flea markets, and similar exhibitions 
or events, including any transient merchant as defined by 
Section 2 of the Transient Merchant Act of 1987, is required to 
file a report with the Department providing the name of the 
merchant's business, the name of the person or persons engaged 
in merchant's business, the permanent address and Illinois 
Retailers Occupation Tax Registration Number of the merchant, 
the dates and location of the event, and other reasonable 
information that the Department may require. The report must 
be filed not later than the 20th day of the month next 
following the month during which the event with retail sales 
was held. Any person who fails to file a report required by 
this Section commits a business offense and is subject to a 
fine not to exceed $250.
    Any person engaged in the business of selling tangible 
personal property at retail as a concessionaire or other type 
of seller at the Illinois State Fair, county fairs, art shows, 
flea markets, and similar exhibitions or events, or any 
transient merchants, as defined by Section 2 of the Transient 
Merchant Act of 1987, may be required to make a daily report of 
the amount of such sales to the Department and to make a daily 
payment of the full amount of tax due. The Department shall 
impose this requirement when it finds that there is a 
significant risk of loss of revenue to the State at such an 
exhibition or event. Such a finding shall be based on evidence 
that a substantial number of concessionaires or other sellers 
who are not residents of Illinois will be engaging in the 
business of selling tangible personal property at retail at 
the exhibition or event, or other evidence of a significant 
risk of loss of revenue to the State. The Department shall 
notify concessionaires and other sellers affected by the 
imposition of this requirement. In the absence of notification 
by the Department, the concessionaires and other sellers shall 
file their returns as otherwise required in this Section.
(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60, 
Section 60-30, eff. 4-19-22; 102-700, Article 65, Section 
65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff. 
1-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363, 
eff. 7-28-23; revised 9-27-23.)
 
    Section 110-25. The Prepaid Wireless 9-1-1 Surcharge Act 
is amended by changing Section 20 as follows:
 
    (50 ILCS 753/20)
    Sec. 20. Administration of prepaid wireless 9-1-1 
surcharge. 
    (a) In the administration and enforcement of this Act, the 
provisions of Sections 2a, 2b, 2c, 3, 4, 5, 5a, 5b, 5c, 5d, 5e, 
5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 12 of the 
Retailers' Occupation Tax Act that are not inconsistent with 
this Act, and Section 3-7 of the Uniform Penalty and Interest 
Act shall apply, as far as practicable, to the subject matter 
of this Act to the same extent as if those provisions were 
included in this Act. References to "taxes" in these 
incorporated Sections shall be construed to apply to the 
administration, payment, and remittance of all surcharges 
under this Act. The Department shall establish registration 
and payment procedures that substantially coincide with the 
registration and payment procedures that apply to the 
Retailers' Occupation Tax Act. 
    (b) A seller shall be permitted to deduct and retain 3% of 
prepaid wireless 9-1-1 surcharges that are collected by the 
seller from consumers and that are remitted and timely filed 
with the Department. Beginning with returns due on or after 
January 1, 2025, the 3% deduction allowed under this 
subsection, including any local surcharge administered by the 
Department and reported on the same return, shall not exceed 
$1,000 per month. Beginning January 1, 2018, the seller is 
allowed to deduct and retain a portion of the prepaid wireless 
9-1-1 surcharges as authorized by this subsection only if the 
return is filed electronically as provided in Section 3 of the 
Retailers' Occupation Tax Act. Sellers who demonstrate that 
they do not have access to the Internet or demonstrate 
hardship in filing electronically may petition the Department 
to waive the electronic filing requirement. 
    (c) Other than the amounts for deposit into the Municipal 
Wireless Service Emergency Fund, the Department shall pay to 
the State Treasurer all prepaid wireless E911 charges, 
penalties, and interest collected under this Act for deposit 
into the Statewide 9-1-1 Fund. On or before the 25th day of 
each calendar month, the Department shall prepare and certify 
to the Comptroller the amount available to the Illinois State 
Police for distribution out of the Statewide 9-1-1 Fund. The 
amount certified shall be the amount (not including credit 
memoranda) collected during the second preceding calendar 
month by the Department plus an amount the Department 
determines is necessary to offset any amounts which were 
erroneously paid to a different taxing body. The amount paid 
to the Statewide 9-1-1 Fund shall not include any amount equal 
to the amount of refunds made during the second preceding 
calendar month by the Department of Revenue to retailers under 
this Act or any amount that the Department determines is 
necessary to offset any amounts which were payable to a 
different taxing body but were erroneously paid to the 
Statewide 9-1-1 Fund. The Illinois State Police shall 
distribute the funds in accordance with Section 30 of the 
Emergency Telephone Safety Act. The Department may deduct an 
amount, not to exceed 2% of remitted charges, to be 
transferred into the Tax Compliance and Administration Fund to 
reimburse the Department for its direct costs of administering 
the collection and remittance of prepaid wireless 9-1-1 
surcharges. 
    (d) The Department shall administer the collection of all 
9-1-1 surcharges and may adopt and enforce reasonable rules 
relating to the administration and enforcement of the 
provisions of this Act as may be deemed expedient. The 
Department shall require all surcharges collected under this 
Act to be reported on existing forms or combined forms, 
including, but not limited to, Form ST-1. Any overpayments 
received by the Department for liabilities reported on 
existing or combined returns shall be applied as an 
overpayment of retailers' occupation tax, use tax, service 
occupation tax, or service use tax liability. 
    (e) If a home rule municipality having a population in 
excess of 500,000 as of the effective date of this amendatory 
Act of the 97th General Assembly imposes an E911 surcharge 
under subsection (a-5) of Section 15 of this Act, then the 
Department shall pay to the State Treasurer all prepaid 
wireless E911 charges, penalties, and interest collected for 
deposit into the Municipal Wireless Service Emergency Fund. 
All deposits into the Municipal Wireless Service Emergency 
Fund shall be held by the State Treasurer as ex officio 
custodian apart from all public moneys or funds of this State. 
Any interest attributable to moneys in the Fund must be 
deposited into the Fund. Moneys in the Municipal Wireless 
Service Emergency Fund are not subject to appropriation. On or 
before the 25th day of each calendar month, the Department 
shall prepare and certify to the Comptroller the amount 
available for disbursement to the home rule municipality out 
of the Municipal Wireless Service Emergency Fund. The amount 
to be paid to the Municipal Wireless Service Emergency Fund 
shall be the amount (not including credit memoranda) collected 
during the second preceding calendar month by the Department 
plus an amount the Department determines is necessary to 
offset any amounts which were erroneously paid to a different 
taxing body. The amount paid to the Municipal Wireless Service 
Emergency Fund shall not include any amount equal to the 
amount of refunds made during the second preceding calendar 
month by the Department to retailers under this Act or any 
amount that the Department determines is necessary to offset 
any amounts which were payable to a different taxing body but 
were erroneously paid to the Municipal Wireless Service 
Emergency Fund. Within 10 days after receipt by the 
Comptroller of the certification provided for in this 
subsection, the Comptroller shall cause the orders to be drawn 
for the respective amounts in accordance with the directions 
in the certification. The Department may deduct an amount, not 
to exceed 2% of remitted charges, to be transferred into the 
Tax Compliance and Administration Fund to reimburse the 
Department for its direct costs of administering the 
collection and remittance of prepaid wireless 9-1-1 
surcharges. 
(Source: P.A. 102-538, eff. 8-20-21.)
 
ARTICLE 115.

 
    Section 115-5. The Business Corporation Act of 1983 is 
amended by changing Sections 15.35 and 15.65 as follows:
 
    (805 ILCS 5/15.35)  (from Ch. 32, par. 15.35)
    (Text of Section from P.A. 102-16 and 103-8)
    Sec. 15.35. Franchise taxes payable by domestic 
corporations. For the privilege of exercising its franchises 
in this State, each domestic corporation shall pay to the 
Secretary of State the following franchise taxes, computed on 
the basis, at the rates and for the periods prescribed in this 
Act:
        (a) An initial franchise tax at the time of filing its 
    first report of issuance of shares.
        (b) An additional franchise tax at the time of filing 
    (1) a report of the issuance of additional shares, or (2) a 
    report of an increase in paid-in capital without the 
    issuance of shares, or (3) an amendment to the articles of 
    incorporation or a report of cumulative changes in paid-in 
    capital, whenever any amendment or such report discloses 
    an increase in its paid-in capital over the amount thereof 
    last reported in any document, other than an annual 
    report, interim annual report or final transition annual 
    report required by this Act to be filed in the office of 
    the Secretary of State.
        (c) An additional franchise tax at the time of filing 
    a report of paid-in capital following a statutory merger 
    or consolidation, which discloses that the paid-in capital 
    of the surviving or new corporation immediately after the 
    merger or consolidation is greater than the sum of the 
    paid-in capital of all of the merged or consolidated 
    corporations as last reported by them in any documents, 
    other than annual reports, required by this Act to be 
    filed in the office of the Secretary of State; and in 
    addition, the surviving or new corporation shall be liable 
    for a further additional franchise tax on the paid-in 
    capital of each of the merged or consolidated corporations 
    as last reported by them in any document, other than an 
    annual report, required by this Act to be filed with the 
    Secretary of State from their taxable year end to the next 
    succeeding anniversary month or, in the case of a 
    corporation which has established an extended filing 
    month, the extended filing month of the surviving or new 
    corporation; however if the taxable year ends within the 
    2-month period immediately preceding the anniversary month 
    or, in the case of a corporation which has established an 
    extended filing month, the extended filing month of the 
    surviving or new corporation the tax will be computed to 
    the anniversary month or, in the case of a corporation 
    which has established an extended filing month, the 
    extended filing month of the surviving or new corporation 
    in the next succeeding calendar year.
        (d) An annual franchise tax payable each year with the 
    annual report which the corporation is required by this 
    Act to file.
    On or after January 1, 2020 and prior to January 1, 2021, 
the first $30 in liability is exempt from the tax imposed under 
this Section. On or after January 1, 2021, and prior to January 
1, 2024, the first $1,000 in liability is exempt from the tax 
imposed under this Section. On or after January 1, 2024, and 
before January 1, 2025, the first $5,000 in liability is 
exempt from the tax imposed under this Section. On and after 
January 1, 2025, the first $10,000 in liability is exempt from 
the tax imposed under this Section. 
(Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
 
    (Text of Section from P.A. 102-282, 102-558, and 103-8)
    Sec. 15.35. Franchise taxes payable by domestic 
corporations. For the privilege of exercising its franchises 
in this State, each domestic corporation shall pay to the 
Secretary of State the following franchise taxes, computed on 
the basis, at the rates and for the periods prescribed in this 
Act:
        (a) An initial franchise tax at the time of filing its 
    first report of issuance of shares.
        (b) An additional franchise tax at the time of filing 
    (1) a report of the issuance of additional shares, or (2) a 
    report of an increase in paid-in capital without the 
    issuance of shares, or (3) an amendment to the articles of 
    incorporation or a report of cumulative changes in paid-in 
    capital, whenever any amendment or such report discloses 
    an increase in its paid-in capital over the amount thereof 
    last reported in any document, other than an annual 
    report, interim annual report or final transition annual 
    report required by this Act to be filed in the office of 
    the Secretary of State.
        (c) An additional franchise tax at the time of filing 
    a report of paid-in capital following a statutory merger 
    or consolidation, which discloses that the paid-in capital 
    of the surviving or new corporation immediately after the 
    merger or consolidation is greater than the sum of the 
    paid-in capital of all of the merged or consolidated 
    corporations as last reported by them in any documents, 
    other than annual reports, required by this Act to be 
    filed in the office of the Secretary of State; and in 
    addition, the surviving or new corporation shall be liable 
    for a further additional franchise tax on the paid-in 
    capital of each of the merged or consolidated corporations 
    as last reported by them in any document, other than an 
    annual report, required by this Act to be filed with the 
    Secretary of State from their taxable year end to the next 
    succeeding anniversary month or, in the case of a 
    corporation which has established an extended filing 
    month, the extended filing month of the surviving or new 
    corporation; however if the taxable year ends within the 
    2-month period immediately preceding the anniversary month 
    or, in the case of a corporation which has established an 
    extended filing month, the extended filing month of the 
    surviving or new corporation the tax will be computed to 
    the anniversary month or, in the case of a corporation 
    which has established an extended filing month, the 
    extended filing month of the surviving or new corporation 
    in the next succeeding calendar year.
        (d) An annual franchise tax payable each year with the 
    annual report which the corporation is required by this 
    Act to file.
    On or after January 1, 2020 and prior to January 1, 2021, 
the first $30 in liability is exempt from the tax imposed under 
this Section. On or after January 1, 2021 and prior to January 
1, 2024, the first $1,000 in liability is exempt from the tax 
imposed under this Section. On or after January 1, 2024, and 
before January 1, 2025, the first $5,000 in liability is 
exempt from the tax imposed under this Section. On and after 
January 1, 2025, the first $10,000 in liability is exempt from 
the tax imposed under this Section. 
(Source: P.A. 102-282, eff. 1-1-22; 102-558, eff. 8-20-21; 
103-8, eff. 6-7-23.)
 
    (805 ILCS 5/15.65)  (from Ch. 32, par. 15.65)
    Sec. 15.65. Franchise taxes payable by foreign 
corporations. For the privilege of exercising its authority to 
transact such business in this State as set out in its 
application therefor or any amendment thereto, each foreign 
corporation shall pay to the Secretary of State the following 
franchise taxes, computed on the basis, at the rates and for 
the periods prescribed in this Act:
        (a) An initial franchise tax at the time of filing its 
    application for authority to transact business in this 
    State.
        (b) An additional franchise tax at the time of filing 
    (1) a report of the issuance of additional shares, or (2) a 
    report of an increase in paid-in capital without the 
    issuance of shares, or (3) a report of cumulative changes 
    in paid-in capital or a report of an exchange or 
    reclassification of shares, whenever any such report 
    discloses an increase in its paid-in capital over the 
    amount thereof last reported in any document, other than 
    an annual report, interim annual report or final 
    transition annual report, required by this Act to be filed 
    in the office of the Secretary of State.
        (c) Whenever the corporation shall be a party to a 
    statutory merger and shall be the surviving corporation, 
    an additional franchise tax at the time of filing its 
    report following merger, if such report discloses that the 
    amount represented in this State of its paid-in capital 
    immediately after the merger is greater than the aggregate 
    of the amounts represented in this State of the paid-in 
    capital of such of the merged corporations as were 
    authorized to transact business in this State at the time 
    of the merger, as last reported by them in any documents, 
    other than annual reports, required by this Act to be 
    filed in the office of the Secretary of State; and in 
    addition, the surviving corporation shall be liable for a 
    further additional franchise tax on the paid-in capital of 
    each of the merged corporations as last reported by them 
    in any document, other than an annual report, required by 
    this Act to be filed with the Secretary of State, from 
    their taxable year end to the next succeeding anniversary 
    month or, in the case of a corporation which has 
    established an extended filing month, the extended filing 
    month of the surviving corporation; however if the taxable 
    year ends within the 2-month period immediately preceding 
    the anniversary month or the extended filing month of the 
    surviving corporation, the tax will be computed to the 
    anniversary or, extended filing month of the surviving 
    corporation in the next succeeding calendar year.
        (d) An annual franchise tax payable each year with any 
    annual report which the corporation is required by this 
    Act to file.
    On or after January 1, 2020 and prior to January 1, 2021, 
the first $30 in liability is exempt from the tax imposed under 
this Section. On or after January 1, 2021 and before January 1, 
2024, the first $1,000 in liability is exempt from the tax 
imposed under this Section. On and after January 1, 2024 and 
before January 1, 2025, the first $5,000 in liability is 
exempt from the tax imposed under this Section. On and after 
January 1, 2025, the first $10,000 in liability is exempt from 
the tax imposed under this Section. 
(Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21; 
102-558, eff. 8-20-21; 102-813, eff. 5-13-22.)
 
ARTICLE 120.

 
    Section 120-5. The Sports Wagering Act is amended by 
changing Section 25-90 as follows:
 
    (230 ILCS 45/25-90)
    Sec. 25-90. Tax; Sports Wagering Fund. 
    (a) For the privilege of holding a license to operate 
sports wagering under this Act until June 30, 2024, this State 
shall impose and collect 15% of a master sports wagering 
licensee's adjusted gross sports wagering receipts from sports 
wagering. The accrual method of accounting shall be used for 
purposes of calculating the amount of the tax owed by the 
licensee.
    The taxes levied and collected pursuant to this subsection 
(a) are due and payable to the Board no later than the last day 
of the month following the calendar month in which the 
adjusted gross sports wagering receipts were received and the 
tax obligation was accrued.
    (a-5) In addition to the tax imposed under subsection (a), 
(d), or (d-5) of this Section, for the privilege of holding a 
license to operate sports wagering under this Act, the State 
shall impose and collect 2% of the adjusted gross receipts 
from sports wagers that are placed within a home rule county 
with a population of over 3,000,000 inhabitants, which shall 
be paid, subject to appropriation from the General Assembly, 
from the Sports Wagering Fund to that home rule county for the 
purpose of enhancing the county's criminal justice system.
    (b) The Sports Wagering Fund is hereby created as a 
special fund in the State treasury. Except as otherwise 
provided in this Act, all moneys collected under this Act by 
the Board shall be deposited into the Sports Wagering Fund. 
Through August 25, 2024, on On the 25th of each month, any 
moneys remaining in the Sports Wagering Fund in excess of the 
anticipated monthly expenditures from the Fund through the 
next month, as certified by the Board to the State 
Comptroller, shall be transferred by the State Comptroller and 
the State Treasurer to the Capital Projects Fund. Beginning 
September 25, 2024, on the 25th of each month, of the moneys 
remaining in the Sports Wagering Fund in excess of the 
anticipated monthly expenditures from the Fund through the 
next month, as certified by the Board to the State 
Comptroller, the State Comptroller shall direct and the State 
Treasurer shall transfer 58% to the General Revenue Fund and 
42% to the Capital Projects Fund. 
    (c) Beginning with July 2021, and on a monthly basis 
thereafter, the Board shall certify to the State Comptroller 
the amount of license fees collected in the month for initial 
licenses issued under this Act, except for occupational 
licenses. As soon after certification as practicable, the 
State Comptroller shall direct and the State Treasurer shall 
transfer the certified amount from the Sports Wagering Fund to 
the Rebuild Illinois Projects Fund. 
    (d) Beginning on July 1, 2024, and for each 12-month 
period thereafter, for the privilege of holding a license to 
operate sports wagering under this Act, this State shall 
impose a privilege tax on the master sports licensee's 
adjusted gross sports wagering receipts from sports wagering 
over the Internet or through a mobile application based on the 
following rates: 
        20% of annual adjusted gross sports wagering receipts 
    up to and including $30,000,000.
        25% of annual adjusted gross sports wagering receipts 
    in excess of $30,000,000 but not exceeding $50,000,000.
        30% of annual adjusted gross sports wagering receipts 
    in excess of $50,000,000 but not exceeding $100,000,000.
        35% of annual adjusted gross sports wagering receipts 
    in excess of $100,000,000 but not exceeding $200,000,000.
        40% of annual adjusted gross sports wagering receipts 
    in excess of $200,000,000. 
    (d-5) Beginning on July 1, 2024, and for each 12-month 
period thereafter, for the privilege of holding a license to 
operate sports wagering under this Act, this State shall 
impose a privilege tax on the master sports licensee's 
adjusted gross sports wagering receipts from sports wagering 
from other than over the Internet or through a mobile 
application based on the following rates:  
        20% of annual adjusted gross sports wagering receipts 
    up to and including $30,000,000.
        25% of annual adjusted gross sports wagering receipts 
    in excess of $30,000,000 but not exceeding $50,000,000.
        30% of annual adjusted gross sports wagering receipts 
    in excess of $50,000,000 but not exceeding $100,000,000.
        35% of annual adjusted gross sports wagering receipts 
    in excess of $100,000,000 but not exceeding $200,000,000.
        40% of annual adjusted gross sports wagering receipts 
    in excess of $200,000,000. 
    (d-10) The accrual method of accounting shall be used for 
purposes of calculating the amount of the tax owed by the 
licensee.
    (d-15) The taxes levied and collected pursuant to 
subsections (d) and (d-5) are due and payable to the Board no 
later than the last day of the month following the calendar 
month in which the adjusted gross sports wagering receipts 
were received and the tax obligation was accrued.  
    (e) Annually, a master sports wagering licensee shall 
transmit to the Board an audit of the financial transactions 
and condition of the licensee's total operations. 
Additionally, within 90 days after the end of each quarter of 
each fiscal year, the master sports wagering licensee shall 
transmit to the Board a compliance report on engagement 
procedures determined by the Board. All audits and compliance 
engagements shall be conducted by certified public accountants 
selected by the Board. Each certified public accountant must 
be registered in the State of Illinois under the Illinois 
Public Accounting Act. The compensation for each certified 
public accountant shall be paid directly by the master sports 
wagering licensee to the certified public accountant. 
(Source: P.A. 101-31, eff. 6-28-19; 102-16, eff. 6-17-21; 
102-687, eff. 12-17-21.)
 
ARTICLE 130.

 
    Section 130-5. The Video Gaming Act is amended by changing 
Section 60 as follows:
 
    (230 ILCS 40/60)
    Sec. 60. Imposition and distribution of tax.
    (a) A tax of 30% is imposed on net terminal income and 
shall be collected by the Board.
    Of the tax collected under this subsection (a), 
five-sixths shall be deposited into the Capital Projects Fund 
and one-sixth shall be deposited into the Local Government 
Video Gaming Distributive Fund. 
    (b) Beginning on July 1, 2019, an additional tax of 3% is 
imposed on net terminal income and shall be collected by the 
Board.
    Beginning on July 1, 2020, an additional tax of 1% is 
imposed on net terminal income and shall be collected by the 
Board.
    Beginning on July 1, 2024, an additional tax of 1% is 
imposed on net terminal income and shall be collected by the 
Board. 
    The tax collected under this subsection (b) shall be 
deposited into the Capital Projects Fund. 
    (c) Revenues generated from the play of video gaming 
terminals shall be deposited by the terminal operator, who is 
responsible for tax payments, in a specially created, separate 
bank account maintained by the video gaming terminal operator 
to allow for electronic fund transfers of moneys for tax 
payment.
    (d) Each licensed establishment, licensed truck stop 
establishment, licensed large truck stop establishment, 
licensed fraternal establishment, and licensed veterans 
establishment shall maintain an adequate video gaming fund, 
with the amount to be determined by the Board.
    (e) The State's percentage of net terminal income shall be 
reported and remitted to the Board within 15 days after the 
15th day of each month and within 15 days after the end of each 
month by the video terminal operator. A video terminal 
operator who falsely reports or fails to report the amount due 
required by this Section is guilty of a Class 4 felony and is 
subject to termination of his or her license by the Board. Each 
video terminal operator shall keep a record of net terminal 
income in such form as the Board may require. All payments not 
remitted when due shall be paid together with a penalty 
assessment on the unpaid balance at a rate of 1.5% per month. 
(Source: P.A. 101-31, eff. 6-28-19.)
 
ARTICLE 135.

 
    Section 135-5. The Property Tax Code is amended by 
changing Section 15-170 as follows:
 
    (35 ILCS 200/15-170)
    Sec. 15-170. Senior citizens homestead exemption.  
    (a) An annual homestead exemption limited, except as 
described here with relation to cooperatives or life care 
facilities, to a maximum reduction set forth below from the 
property's value, as equalized or assessed by the Department, 
is granted for property that is occupied as a residence by a 
person 65 years of age or older who is liable for paying real 
estate taxes on the property and is an owner of record of the 
property or has a legal or equitable interest therein as 
evidenced by a written instrument, except for a leasehold 
interest, other than a leasehold interest of land on which a 
single family residence is located, which is occupied as a 
residence by a person 65 years or older who has an ownership 
interest therein, legal, equitable or as a lessee, and on 
which he or she is liable for the payment of property taxes. 
Before taxable year 2004, the maximum reduction shall be 
$2,500 in counties with 3,000,000 or more inhabitants and 
$2,000 in all other counties. For taxable years 2004 through 
2005, the maximum reduction shall be $3,000 in all counties. 
For taxable years 2006 and 2007, the maximum reduction shall 
be $3,500. For taxable years 2008 through 2011, the maximum 
reduction is $4,000 in all counties. For taxable year 2012, 
the maximum reduction is $5,000 in counties with 3,000,000 or 
more inhabitants and $4,000 in all other counties. For taxable 
years 2013 through 2016, the maximum reduction is $5,000 in 
all counties. For taxable years 2017 through 2022, the maximum 
reduction is $8,000 in counties with 3,000,000 or more 
inhabitants and $5,000 in all other counties. For taxable 
years 2023 and thereafter, the maximum reduction is $8,000 in 
counties with 3,000,000 or more inhabitants and counties that 
are contiguous to a county of 3,000,000 or more inhabitants 
and $5,000 in all other counties. 
    (b) For land improved with an apartment building owned and 
operated as a cooperative, the maximum reduction from the 
value of the property, as equalized by the Department, shall 
be multiplied by the number of apartments or units occupied by 
a person 65 years of age or older who is liable, by contract 
with the owner or owners of record, for paying property taxes 
on the property and is an owner of record of a legal or 
equitable interest in the cooperative apartment building, 
other than a leasehold interest. For land improved with a life 
care facility, the maximum reduction from the value of the 
property, as equalized by the Department, shall be multiplied 
by the number of apartments or units occupied by persons 65 
years of age or older, irrespective of any legal, equitable, 
or leasehold interest in the facility, who are liable, under a 
contract with the owner or owners of record of the facility, 
for paying property taxes on the property. In a cooperative or 
a life care facility where a homestead exemption has been 
granted, the cooperative association or the management firm of 
the cooperative or facility shall credit the savings resulting 
from that exemption only to the apportioned tax liability of 
the owner or resident who qualified for the exemption. Any 
person who willfully refuses to so credit the savings shall be 
guilty of a Class B misdemeanor. Under this Section and 
Sections 15-175, 15-176, and 15-177, "life care facility" 
means a facility, as defined in Section 2 of the Life Care 
Facilities Act, with which the applicant for the homestead 
exemption has a life care contract as defined in that Act.
    (c) When a homestead exemption has been granted under this 
Section and the person qualifying subsequently becomes a 
resident of a facility licensed under the Assisted Living and 
Shared Housing Act, the Nursing Home Care Act, the Specialized 
Mental Health Rehabilitation Act of 2013, the ID/DD Community 
Care Act, or the MC/DD Act, the exemption shall continue so 
long as the residence continues to be occupied by the 
qualifying person's spouse if the spouse is 65 years of age or 
older, or if the residence remains unoccupied but is still 
owned by the person qualified for the homestead exemption.
    (d) A person who will be 65 years of age during the current 
assessment year shall be eligible to apply for the homestead 
exemption during that assessment year. Application shall be 
made during the application period in effect for the county of 
his residence.
    (e) Beginning with assessment year 2003, for taxes payable 
in 2004, property that is first occupied as a residence after 
January 1 of any assessment year by a person who is eligible 
for the senior citizens homestead exemption under this Section 
must be granted a pro-rata exemption for the assessment year. 
The amount of the pro-rata exemption is the exemption allowed 
in the county under this Section divided by 365 and multiplied 
by the number of days during the assessment year the property 
is occupied as a residence by a person eligible for the 
exemption under this Section. The chief county assessment 
officer must adopt reasonable procedures to establish 
eligibility for this pro-rata exemption.
    (f) The assessor or chief county assessment officer may 
determine the eligibility of a life care facility to receive 
the benefits provided by this Section, by affidavit, 
application, visual inspection, questionnaire or other 
reasonable methods in order to ensure insure that the tax 
savings resulting from the exemption are credited by the 
management firm to the apportioned tax liability of each 
qualifying resident. The assessor may request reasonable proof 
that the management firm has so credited the exemption.
    (g) The chief county assessment officer of each county 
with less than 3,000,000 inhabitants shall provide to each 
person allowed a homestead exemption under this Section a form 
to designate any other person to receive a duplicate of any 
notice of delinquency in the payment of taxes assessed and 
levied under this Code on the property of the person receiving 
the exemption. The duplicate notice shall be in addition to 
the notice required to be provided to the person receiving the 
exemption, and shall be given in the manner required by this 
Code. The person filing the request for the duplicate notice 
shall pay a fee of $5 to cover administrative costs to the 
supervisor of assessments, who shall then file the executed 
designation with the county collector. Notwithstanding any 
other provision of this Code to the contrary, the filing of 
such an executed designation requires the county collector to 
provide duplicate notices as indicated by the designation. A 
designation may be rescinded by the person who executed such 
designation at any time, in the manner and form required by the 
chief county assessment officer.
    (h) The assessor or chief county assessment officer may 
determine the eligibility of residential property to receive 
the homestead exemption provided by this Section by 
application, visual inspection, questionnaire or other 
reasonable methods. The determination shall be made in 
accordance with guidelines established by the Department.
    (i) In counties with 3,000,000 or more inhabitants, for 
taxable years 2010 through 2018, and beginning again in 
taxable year 2024, each taxpayer who has been granted an 
exemption under this Section must reapply on an annual basis. 
    If a reapplication is required, then the chief county 
assessment officer shall mail the application to the taxpayer 
at least 60 days prior to the last day of the application 
period for the county. 
    For taxable years 2019 and thereafter through 2023, in 
counties with 3,000,000 or more inhabitants, a taxpayer who 
has been granted an exemption under this Section need not 
reapply. However, if the property ceases to be qualified for 
the exemption under this Section in any year for which a 
reapplication is not required under this Section, then the 
owner of record of the property shall notify the chief county 
assessment officer that the property is no longer qualified. 
In addition, for taxable years 2019 and thereafter through 
2023, the chief county assessment officer of a county with 
3,000,000 or more inhabitants shall enter into an 
intergovernmental agreement with the county clerk of that 
county and the Department of Public Health, as well as any 
other appropriate governmental agency, to obtain information 
that documents the death of a taxpayer who has been granted an 
exemption under this Section. Notwithstanding any other 
provision of law, the county clerk and the Department of 
Public Health shall provide that information to the chief 
county assessment officer. The Department of Public Health 
shall supply this information no less frequently than every 
calendar quarter. Information concerning the death of a 
taxpayer may be shared with the county treasurer. The chief 
county assessment officer shall also enter into a data 
exchange agreement with the Social Security Administration or 
its agent to obtain access to the information regarding deaths 
in possession of the Social Security Administration. The chief 
county assessment officer shall, subject to the notice 
requirements under subsection (m) of Section 9-275, terminate 
the exemption under this Section if the information obtained 
indicates that the property is no longer qualified for the 
exemption. In counties with 3,000,000 or more inhabitants, the 
assessor and the county clerk recorder of deeds shall 
establish policies and practices for the regular exchange of 
information for the purpose of alerting the assessor whenever 
the transfer of ownership of any property receiving an 
exemption under this Section has occurred. When such a 
transfer occurs, the assessor shall mail a notice to the new 
owner of the property (i) informing the new owner that the 
exemption will remain in place through the year of the 
transfer, after which it will be canceled, and (ii) providing 
information pertaining to the rules for reapplying for the 
exemption if the owner qualifies. In counties with 3,000,000 
or more inhabitants, the chief county assessment official 
shall conduct, by no later than December 31 of the first year 
of each reassessment cycle, as determined by Section 9-220, a 
review audits of all exemptions granted under this Section for 
the preceding reassessment cycle under this Section no later 
than December 31, 2022 and no later than December 31, 2024. The 
review audit shall be designed to ascertain whether any senior 
homestead exemptions have been granted erroneously. If it is 
determined that a senior homestead exemption has been 
erroneously applied to a property, the chief county assessment 
officer shall make use of the appropriate provisions of 
Section 9-275 in relation to the property that received the 
erroneous homestead exemption. 
    (j) In counties with less than 3,000,000 inhabitants, the 
county board may by resolution provide that if a person has 
been granted a homestead exemption under this Section, the 
person qualifying need not reapply for the exemption. In 
counties in which the county board passes such a resolution, 
the chief county assessment official shall, prior to the 
submission of the final abstract for the first year of each 
reassessment cycle, as determined by Section 9-215, review all 
exemptions granted for the preceding reassessment cycle under 
this Section. The review shall be designed to ascertain 
whether any senior homestead exemptions have been granted 
erroneously. 
    In counties with less than 3,000,000 inhabitants, if the 
assessor or chief county assessment officer requires annual 
application for verification of eligibility for an exemption 
once granted under this Section, the application shall be 
mailed to the taxpayer.
    (l) The assessor or chief county assessment officer shall 
notify each person who qualifies for an exemption under this 
Section that the person may also qualify for deferral of real 
estate taxes under the Senior Citizens Real Estate Tax 
Deferral Act. The notice shall set forth the qualifications 
needed for deferral of real estate taxes, the address and 
telephone number of county collector, and a statement that 
applications for deferral of real estate taxes may be obtained 
from the county collector.
    (m) Notwithstanding Sections 6 and 8 of the State Mandates 
Act, no reimbursement by the State is required for the 
implementation of any mandate created by this Section.
(Source: P.A. 101-453, eff. 8-23-19; 101-622, eff. 1-14-20; 
102-895, eff. 5-23-22.)
 
ARTICLE 140.

 
    Section 140-5. The Property Tax Code is amended by 
changing Sections 10-40 and 10-50 as follows:
 
    (35 ILCS 200/10-40)
    Sec. 10-40. Historic Residence Assessment Freeze Law; 
definitions. This Section and Sections 10-45 through 10-85 may 
be cited as the Historic Residence Assessment Freeze Law. As 
used in this Section and Sections 10-45 through 10-85: 
        (a) "Director" means the Director of Historic 
    Preservation. 
        (b) "Approved county or municipal landmark ordinance" 
    means a county or municipal ordinance approved by the 
    Director. 
        (c) "Historic building" means an owner-occupied single 
    family residence or an owner-occupied multi-family 
    residence and the tract, lot or parcel upon which it is 
    located, or a building or buildings owned and operated as 
    a cooperative, if: 
            (1) individually listed on the National Register 
        of Historic Places or the Illinois Register of 
        Historic Places; 
            (2) individually designated pursuant to an 
        approved county or municipal landmark ordinance; or 
            (3) within a district listed on the National 
        Register of Historic Places or designated pursuant to 
        an approved county or municipal landmark ordinance, if 
        the Director determines that the building is of 
        historic significance to the district in which it is 
        located. 
    Historic building does not mean an individual unit of a 
    cooperative. 
        (d) "Assessment officer" means the chief county 
    assessment officer. 
        (e) "Certificate of rehabilitation" means the 
    certificate issued by the Director upon the renovation, 
    restoration, preservation or rehabilitation of an historic 
    building under this Code. 
        (f) "Rehabilitation period" means the period of time 
    necessary to renovate, restore, preserve or rehabilitate 
    an historic building as determined by the Director. 
        (g) "Standards for rehabilitation" means the Secretary 
    of Interior's standards for rehabilitation as promulgated 
    by the U.S. Department of the Interior. 
        (h) "Fair cash value" means the fair cash value of the 
    historic building, as finally determined for that year by 
    the assessment officer, board of review, Property Tax 
    Appeal Board, or court on the basis of the assessment 
    officer's property record card, representing the value of 
    the property prior to the commencement of rehabilitation 
    without consideration of any reduction reflecting value 
    during the rehabilitation work. The changes made to this 
    Section by this amendatory Act of the 103rd General 
    Assembly are declarative of existing law and shall not be 
    construed as a new enactment.  
        (i) "Base year valuation" means the fair cash value of 
    the historic building for the year in which the 
    rehabilitation period begins but prior to the commencement 
    of the rehabilitation and does not include any reduction 
    in value during the rehabilitation work. 
        (j) "Adjustment in value" means the difference for any 
    year between the then current fair cash value and the base 
    year valuation. 
        (k) "Eight-year valuation period" means the 8 years 
    from the date of the issuance of the certificate of 
    rehabilitation. 
        (l) "Adjustment valuation period" means the 4 years 
    following the 8 year valuation period. 
        (m) "Substantial rehabilitation" means interior or 
    exterior rehabilitation work that preserves the historic 
    building in a manner that significantly improves its 
    condition. 
        (n) "Approved local government" means a local 
    government that has been certified by the Director as: 
            (1) enforcing appropriate legislation for the 
        designation of historic buildings; 
            (2) having established an adequate and qualified 
        historic review commission; 
            (3) maintaining a system for the survey and 
        inventory of historic properties; 
            (4) providing for adequate public participation in 
        the local historic preservation program; and 
            (5) maintaining a system for reviewing 
        applications under this Section in accordance with 
        rules and regulations promulgated by the Director. 
        (o) "Cooperative" means a building or buildings and 
    the tract, lot, or parcel on which the building or 
    buildings are located, if the building or buildings are 
    devoted to residential uses by the owners and fee title to 
    the land and building or buildings is owned by a 
    corporation or other legal entity in which the 
    shareholders or other co-owners each also have a long-term 
    proprietary lease or other long-term arrangement of 
    exclusive possession for a specific unit of occupancy 
    space located within the same building or buildings. 
        (p) "Owner", in the case of a cooperative, means the 
    Association. 
        (q) "Association", in the case of a cooperative, means 
    the entity responsible for the administration of a 
    cooperative, which entity may be incorporated or 
    unincorporated, profit or nonprofit. 
        (r) "Owner-occupied single family residence" means a 
    residence in which the title holder of record (i) holds 
    fee simple ownership and (ii) occupies the property as 
    his, her, or their principal residence. 
        (s) "Owner-occupied multi-family residence" means 
    residential property comprised of not more than 6 living 
    units in which the title holder of record (i) holds fee 
    simple ownership and (ii) occupies one unit as his, her, 
    or their principal residence. The remaining units may be 
    leased.
    The changes made to this Section by this amendatory Act of 
the 91st General Assembly are declarative of existing law and 
shall not be construed as a new enactment.
(Source: P.A. 90-114, eff. 1-1-98; 91-806, eff. 1-1-01.)
 
    (35 ILCS 200/10-50)
    Sec. 10-50. Valuation after 8 year valuation period.  
    (a) For the 4 years after the expiration of the 8-year 
valuation period, the valuation for purposes of computing the 
assessed valuation shall not exceed the following be as 
follows:
        For the first year, the base year valuation plus 25% 
    of the adjustment in value.
        For the second year, the base year valuation plus 50% 
    of the adjustment in value.
        For the third year, the base year valuation plus 75% 
    of the adjustment in value.
        For the fourth year, the then current fair cash value.
    (b) If the current fair cash value during the adjustment 
valuation period is less than the base year valuation with the 
applicable adjustment, the assessment shall be based on the 
current fair cash value. The changes made to this Section by 
this amendatory Act of the 103rd General Assembly are 
declarative of existing law and shall not be construed as a new 
enactment. 
(Source: P.A. 82-1023; 88-455.)
 
ARTICLE 145.

 
    Section 145-5. The Property Tax Code is amended by 
changing Section 15-40 as follows:
 
    (35 ILCS 200/15-40)
    Sec. 15-40. Religious purposes, orphanages, or school and 
religious purposes.
    (a) Property used exclusively for:
        (1) religious purposes, or
        (2) school and religious purposes, or
        (3) orphanages
qualifies for exemption as long as it is not used with a view 
to profit.
    (b) Property that is owned by
        (1) churches or
        (2) religious institutions or
        (3) religious denominations
and that is used in conjunction therewith as housing 
facilities provided for ministers (including bishops, district 
superintendents and similar church officials whose ministerial 
duties are not limited to a single congregation), their 
spouses, children and domestic workers, performing the duties 
of their vocation as ministers at such churches or religious 
institutions or for such religious denominations, including 
the convents and monasteries where persons engaged in 
religious activities reside also qualifies for exemption. 
    A parsonage, convent or monastery or other housing 
facility shall be considered under this Section to be 
exclusively used for religious purposes when the persons who 
perform religious related activities shall, as a condition of 
their employment or association, reside in the facility.
    (c) In Cook County, whenever any interest in a property 
exempt under this Section is transferred, notice of that 
transfer must be filed with the county clerk recorder. The 
chief county assessment officer shall prepare and make 
available a form notice for this purpose. Whenever a notice is 
filed, the county clerk recorder shall transmit a copy of that 
recorded notice to the chief county assessment officer within 
14 days after receipt.
(Source: P.A. 92-333, eff. 8-10-01.)
 
ARTICLE 150.

 
    Section 150-1. Short title. This Act may be cited as the 
Interchange Fee Prohibition Act. References in this Article to 
"this Act" mean this Article.
 
    Section 150-5. Definitions. As used in this Act:
    "Acquirer bank" means a member of a payment card network 
that contracts with a merchant for the settlement of 
electronic payment transactions. An acquirer bank may contract 
directly with merchants or indirectly through a processor to 
process electronic payment transactions.
    "Authorization" means the process through which a merchant 
requests approval for an electronic payment transaction from 
the issuer.
    "Clearance" means the process of transmitting final 
transaction data from a merchant to an issuer for posting to 
the cardholder's account and the calculation of fees and 
charges, including interchange fees, that apply to the issuer 
and the merchant. 
    "Credit card" means a card, plate, coupon book, or other 
credit device existing for the purpose of obtaining money, 
property, labor, or services on credit. 
    "Debit card" means a card or other payment code or device 
issued or approved for use through a payment card network to 
debit an asset account, regardless of the purpose for which 
the account is established, whether authorization is based on 
a signature, a personal identification number, or other means. 
"Debit card" includes a general use prepaid card, as defined 
in 15 U.S.C. 16931-1. "Debit card" does not include paper 
checks.
    "Electronic payment transaction" means a transaction in 
which a person uses a debit card, a credit card, or other 
payment code or device issued or approved through a payment 
card network to debit a deposit account or use a line of 
credit, whether authorization is based on a signature, a 
personal identification number, or other means.
    "Gratuity" means a voluntary monetary contribution to an 
employee from a guest, patron, or customer in connection with 
services rendered.
    "Interchange fee" means a fee established, charged, or 
received by a payment card network for the purpose of 
compensating the issuer for its involvement in an electronic 
payment transaction.
    "Issuer" means a person issuing a debit card or credit 
card or the issuer's agent.
    "Merchant" means a person that collects and remits a tax. 
    "Payment card network" means an entity that:
        (1) directly or through licensed members, processors, 
    or agents, provides the proprietary services, 
    infrastructure, and software to route information and data 
    for the purpose of conducting electronic payment 
    transaction authorization, clearance, and settlement; and
        (2) a merchant uses to accept as a form of payment a 
    brand of debit card, credit card, or other device that may 
    be used to carry out electronic payment transactions.
    "Person" means any individual, firm, public or private 
corporation, government, partnership, association, or any 
other organization or entity.
    "Processor" means an entity that facilitates, services, 
processes, or manages the debit or credit authorization, 
billing, transfer, payment procedures, or settlement with 
respect to any electronic payment transaction.
    "Settlement" means the process of transmitting sales 
information to the issuing bank for collection and 
reimbursement of funds to the merchant and calculating and 
reporting the net transaction amount to the issuer and 
merchant for an electronic payment transaction that is 
cleared.
    "Tax" means any use and occupation tax or excise tax 
imposed by the State or a unit of local government in the 
State.
    "Tax documentation" means documentation sufficient for the 
payment card network to determine the total amount of the 
electronic payment transaction and the tax or gratuity amount 
of the transaction. Tax documentation may be related to a 
single electronic payment transaction or multiple electronic 
payment transactions aggregated over a period of time. 
Examples of tax documentation include, but are not limited to, 
invoices, receipts, journals, ledgers, and tax returns filed 
with the Department of Revenue or local taxing authorities.
 
    Section 150-10. Interchange fees on taxes prohibited. 
    (a) An issuer, a payment card network, an acquirer bank, 
or a processor may not receive or charge a merchant any 
interchange fee on the tax amount or gratuity of an electronic 
payment transaction if the merchant informs the acquirer bank 
or its designee of the tax or gratuity amount as part of the 
authorization or settlement process for the electronic payment 
transaction. The merchant must transmit the tax or gratuity 
amount data as part of the authorization or settlement process 
to avoid being charged interchange fees on the tax or gratuity 
amount of an electronic payment transaction.
    (b) A merchant that does not transmit the tax or gratuity 
amount data in accordance with this Section may submit tax 
documentation for the electronic payment transaction to the 
acquirer bank or its designee no later than 180 days after the 
date of the electronic payment transaction, and, within 30 
days after the merchant submits the necessary tax 
documentation, the issuer must credit to the merchant the 
amount of interchange fees charged on the tax or gratuity 
amount of the electronic payment transaction.
    (c) This Section does not create liability for a payment 
card network regarding the accuracy of the tax or gratuity 
data reported by the merchant.
    (d) It shall be unlawful for an issuer, a payment card 
network, an acquirer bank, or a processor to alter or 
manipulate the computation and imposition of interchange fees 
by increasing the rate or amount of the fees applicable to or 
imposed upon the portion of a credit or debit card transaction 
not attributable to taxes or other fees charged to the 
retailer to circumvent the effect of this Section.
 
    Section 150-15. Penalties. 
    (a) An issuer, a payment card network, an acquirer bank, a 
processor, or other designated entity that has received the 
tax or gratuity amount data and violates Section 150-10 is 
subject to a civil penalty of $1,000 per electronic payment 
transaction, and the issuer must refund the merchant the 
interchange fee calculated on the tax or gratuity amount 
relative to the electronic payment transaction.
    (b) An entity, other than the merchant, involved in 
facilitating or processing an electronic payment transaction, 
including, but not limited to, an issuer, a payment card 
network, an acquirer bank, a processor, or other designated 
entity, may not distribute, exchange, transfer, disseminate, 
or use the electronic payment transaction data except to 
facilitate or process the electronic payment transaction or as 
required by law. A violation of this subsection constitutes a 
violation of the Consumer Fraud and Deceptive Business 
Practices Act.
 
    Section 150-95. Severability. The provisions of this Act 
are severable under Section 1.31 of the Statute on Statutes.
 
ARTICLE 155.

 
    Section 155-5. The Property Tax Code is amended by 
changing Sections 9-45 and 11-15 as follows:
 
    (35 ILCS 200/9-45)
    Sec. 9-45. Property index number system. The county clerk 
in counties of 3,000,000 or more inhabitants and, subject to 
the approval of the county board, the chief county assessment 
officer or recorder, in counties of less than 3,000,000 
inhabitants, may establish a property index number system 
under which property may be listed for purposes of assessment, 
collection of taxes or automation of the office of the 
recorder. The system may be adopted in addition to, or instead 
of, the method of listing by legal description as provided in 
Section 9-40. The system shall describe property by township, 
section, block, and parcel or lot, and may cross-reference the 
street or post office address, if any, and street code number, 
if any. The county clerk, county treasurer, chief county 
assessment officer or recorder may establish and maintain 
cross indexes of numbers assigned under the system with the 
complete legal description of the properties to which the 
numbers relate. Index numbers shall be assigned by the county 
clerk in counties of 3,000,000 or more inhabitants, and, at 
the direction of the county board in counties with less than 
3,000,000 inhabitants, shall be assigned by the chief county 
assessment officer or recorder. Tax maps of the county clerk, 
county treasurer or chief county assessment officer shall 
carry those numbers. The indexes shall be open to public 
inspection and be made available to the public. Any property 
index number system established prior to the effective date of 
this Code shall remain valid. However, in counties with less 
than 3,000,000 inhabitants, the system may be transferred to 
another authority upon the approval of the county board.
    Any real property used for a power generating or 
automotive manufacturing facility located within a county of 
less than 1,000,000 inhabitants, as to which litigation with 
respect to its assessed valuation is pending or was pending as 
of January 1, 1993, may be the subject of a real property tax 
assessment settlement agreement among the taxpayer and taxing 
districts in which it is situated. In addition, any real 
property that is located in a county with fewer than 1,000,000 
inhabitants and (i) is used for natural gas extraction and 
fractionation or olefin and polymer manufacturing or (ii) is 
used for a petroleum refinery and (ii) located within a county 
of less than 1,000,000 inhabitants may be the subject of a real 
property tax assessment settlement agreement among the 
taxpayer and taxing districts in which the property is 
situated if litigation is or was pending as to its assessed 
valuation as of January 1, 2003 or thereafter. Other 
appropriate authorities, which may include county and State 
boards or officials, may also be parties to such agreements. 
Such agreements may include the assessment of the facility or 
property for any years in dispute as well as for up to 10 years 
in the future. Such agreements may provide for the settlement 
of issues relating to the assessed value of the facility and 
may provide for related payments, refunds, claims, credits 
against taxes and liabilities in respect to past and future 
taxes of taxing districts, including any fund created under 
Section 20-35 of this Act, all implementing the settlement 
agreement. Any such agreement may provide that parties thereto 
agree not to challenge assessments as provided in the 
agreement. An agreement entered into on or after January 1, 
1993 may provide for the classification of property that is 
the subject of the agreement as real or personal during the 
term of the agreement and thereafter. It may also provide that 
taxing districts agree to reimburse the taxpayer for amounts 
paid by the taxpayer in respect to taxes for the real property 
which is the subject of the agreement to the extent levied by 
those respective districts, over and above amounts which would 
be due if the facility were to be assessed as provided in the 
agreement. Such reimbursement may be provided in the agreement 
to be made by credit against taxes of the taxpayer. No credits 
shall be applied against taxes levied with respect to debt 
service or lease payments of a taxing district. No referendum 
approval or appropriation shall be required for such an 
agreement or such credits and any such obligation shall not 
constitute indebtedness of the taxing district for purposes of 
any statutory limitation. The county collector shall treat 
credited amounts as if they had been received by the collector 
as taxes paid by the taxpayer and as if remitted to the 
district. A county treasurer who is a party to such an 
agreement may agree to hold amounts paid in escrow as provided 
in the agreement for possible use for paying taxes until 
conditions of the agreement are met and then to apply these 
amounts as provided in the agreement. No such settlement 
agreement shall be effective unless it shall have been 
approved by the court in which such litigation is pending. Any 
such agreement which has been entered into prior to adoption 
of this amendatory Act of 1988 and which is contingent upon 
enactment of authorizing legislation shall be binding and 
enforceable.
(Source: P.A. 96-609, eff. 8-24-09.)
 
    (35 ILCS 200/11-15)
    Sec. 11-15. Method of valuation for pollution control 
facilities. To determine 33 1/3% of the fair cash value of any 
certified pollution control facility facilities in assessing 
those facilities, the Department shall determine take into 
consideration the actual or probable net earnings attributable 
to the facilities in question, capitalized on the basis of 
their productive earning value to their owner; the probable 
net value that which could be realized by its their owner if 
the facility facilities were removed and sold at a fair, 
voluntary sale, giving due account to the expense of removal 
and condition of the particular facility facilities in 
question; and other information as the Department may consider 
as bearing on the fair cash value of the facilities to their 
owner, consistent with the principles set forth in this 
Section. For the purposes of this Code, earnings shall be 
attributed to a pollution control facility only to the extent 
that its operation results in the production of a commercially 
saleable by-product or increases the production or reduces the 
production costs of the products or services otherwise sold by 
the owner of such facility. The assessed value of the facility 
shall be 33/1/3% of the fair cash value of the facility. 
(Source: P.A. 83-121; 88-455.)
 
ARTICLE 160.

 
    Section 160-5. The Illinois Gambling Act is amended by 
changing Section 13 as follows:
 
    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
    Sec. 13. Wagering tax; rate; distribution. 
    (a) Until January 1, 1998, a tax is imposed on the adjusted 
gross receipts received from gambling games authorized under 
this Act at the rate of 20%.
    (a-1) From January 1, 1998 until July 1, 2002, a privilege 
tax is imposed on persons engaged in the business of 
conducting riverboat gambling operations, based on the 
adjusted gross receipts received by a licensed owner from 
gambling games authorized under this Act at the following 
rates:
        15% of annual adjusted gross receipts up to and 
    including $25,000,000;
        20% of annual adjusted gross receipts in excess of 
    $25,000,000 but not exceeding $50,000,000;
        25% of annual adjusted gross receipts in excess of 
    $50,000,000 but not exceeding $75,000,000;
        30% of annual adjusted gross receipts in excess of 
    $75,000,000 but not exceeding $100,000,000;
        35% of annual adjusted gross receipts in excess of 
    $100,000,000.
    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax 
is imposed on persons engaged in the business of conducting 
riverboat gambling operations, other than licensed managers 
conducting riverboat gambling operations on behalf of the 
State, based on the adjusted gross receipts received by a 
licensed owner from gambling games authorized under this Act 
at the following rates:
        15% of annual adjusted gross receipts up to and 
    including $25,000,000;
        22.5% of annual adjusted gross receipts in excess of 
    $25,000,000 but not exceeding $50,000,000;
        27.5% of annual adjusted gross receipts in excess of 
    $50,000,000 but not exceeding $75,000,000;
        32.5% of annual adjusted gross receipts in excess of 
    $75,000,000 but not exceeding $100,000,000;
        37.5% of annual adjusted gross receipts in excess of 
    $100,000,000 but not exceeding $150,000,000;
        45% of annual adjusted gross receipts in excess of 
    $150,000,000 but not exceeding $200,000,000;
        50% of annual adjusted gross receipts in excess of 
    $200,000,000.
    (a-3) Beginning July 1, 2003, a privilege tax is imposed 
on persons engaged in the business of conducting riverboat 
gambling operations, other than licensed managers conducting 
riverboat gambling operations on behalf of the State, based on 
the adjusted gross receipts received by a licensed owner from 
gambling games authorized under this Act at the following 
rates:
        15% of annual adjusted gross receipts up to and 
    including $25,000,000;
        27.5% of annual adjusted gross receipts in excess of 
    $25,000,000 but not exceeding $37,500,000;
        32.5% of annual adjusted gross receipts in excess of 
    $37,500,000 but not exceeding $50,000,000;
        37.5% of annual adjusted gross receipts in excess of 
    $50,000,000 but not exceeding $75,000,000;
        45% of annual adjusted gross receipts in excess of 
    $75,000,000 but not exceeding $100,000,000;
        50% of annual adjusted gross receipts in excess of 
    $100,000,000 but not exceeding $250,000,000;
        70% of annual adjusted gross receipts in excess of 
    $250,000,000.
    An amount equal to the amount of wagering taxes collected 
under this subsection (a-3) that are in addition to the amount 
of wagering taxes that would have been collected if the 
wagering tax rates under subsection (a-2) were in effect shall 
be paid into the Common School Fund.
    The privilege tax imposed under this subsection (a-3) 
shall no longer be imposed beginning on the earlier of (i) July 
1, 2005; (ii) the first date after June 20, 2003 that riverboat 
gambling operations are conducted pursuant to a dormant 
license; or (iii) the first day that riverboat gambling 
operations are conducted under the authority of an owners 
license that is in addition to the 10 owners licenses 
initially authorized under this Act. For the purposes of this 
subsection (a-3), the term "dormant license" means an owners 
license that is authorized by this Act under which no 
riverboat gambling operations are being conducted on June 20, 
2003.
    (a-4) Beginning on the first day on which the tax imposed 
under subsection (a-3) is no longer imposed and ending upon 
the imposition of the privilege tax under subsection (a-5) of 
this Section, a privilege tax is imposed on persons engaged in 
the business of conducting gambling operations, other than 
licensed managers conducting riverboat gambling operations on 
behalf of the State, based on the adjusted gross receipts 
received by a licensed owner from gambling games authorized 
under this Act at the following rates:
        15% of annual adjusted gross receipts up to and 
    including $25,000,000;
        22.5% of annual adjusted gross receipts in excess of 
    $25,000,000 but not exceeding $50,000,000;
        27.5% of annual adjusted gross receipts in excess of 
    $50,000,000 but not exceeding $75,000,000;
        32.5% of annual adjusted gross receipts in excess of 
    $75,000,000 but not exceeding $100,000,000;
        37.5% of annual adjusted gross receipts in excess of 
    $100,000,000 but not exceeding $150,000,000;
        45% of annual adjusted gross receipts in excess of 
    $150,000,000 but not exceeding $200,000,000;
        50% of annual adjusted gross receipts in excess of 
    $200,000,000.
    For the imposition of the privilege tax in this subsection 
(a-4), amounts paid pursuant to item (1) of subsection (b) of 
Section 56 of the Illinois Horse Racing Act of 1975 shall not 
be included in the determination of adjusted gross receipts. 
    (a-5)(1) Beginning on July 1, 2020, a privilege tax is 
imposed on persons engaged in the business of conducting 
gambling operations, other than the owners licensee under 
paragraph (1) of subsection (e-5) of Section 7 and licensed 
managers conducting riverboat gambling operations on behalf of 
the State, based on the adjusted gross receipts received by 
such licensee from the gambling games authorized under this 
Act. The privilege tax for all gambling games other than table 
games, including, but not limited to, slot machines, video 
game of chance gambling, and electronic gambling games shall 
be at the following rates:
        15% of annual adjusted gross receipts up to and 
    including $25,000,000;
        22.5% of annual adjusted gross receipts in excess of 
    $25,000,000 but not exceeding $50,000,000;
        27.5% of annual adjusted gross receipts in excess of 
    $50,000,000 but not exceeding $75,000,000;
        32.5% of annual adjusted gross receipts in excess of 
    $75,000,000 but not exceeding $100,000,000;
        37.5% of annual adjusted gross receipts in excess of 
    $100,000,000 but not exceeding $150,000,000;
        45% of annual adjusted gross receipts in excess of 
    $150,000,000 but not exceeding $200,000,000;
        50% of annual adjusted gross receipts in excess of 
    $200,000,000.
    The privilege tax for table games shall be at the 
following rates:
        15% of annual adjusted gross receipts up to and 
    including $25,000,000;
        20% of annual adjusted gross receipts in excess of 
    $25,000,000.
    For the imposition of the privilege tax in this subsection 
(a-5), amounts paid pursuant to item (1) of subsection (b) of 
Section 56 of the Illinois Horse Racing Act of 1975 shall not 
be included in the determination of adjusted gross receipts.
    (2) Beginning on the first day that an owners licensee 
under paragraph (1) of subsection (e-5) of Section 7 conducts 
gambling operations, either in a temporary facility or a 
permanent facility, a privilege tax is imposed on persons 
engaged in the business of conducting gambling operations 
under paragraph (1) of subsection (e-5) of Section 7, other 
than licensed managers conducting riverboat gambling 
operations on behalf of the State, based on the adjusted gross 
receipts received by such licensee from the gambling games 
authorized under this Act. The privilege tax for all gambling 
games other than table games, including, but not limited to, 
slot machines, video game of chance gambling, and electronic 
gambling games shall be at the following rates:
        12% of annual adjusted gross receipts up to and 
    including $25,000,000 to the State and 10.5% of annual 
    adjusted gross receipts up to and including $25,000,000 to 
    the City of Chicago;
        16% of annual adjusted gross receipts in excess of 
    $25,000,000 but not exceeding $50,000,000 to the State and 
    14% of annual adjusted gross receipts in excess of 
    $25,000,000 but not exceeding $50,000,000 to the City of 
    Chicago;
        20.1% of annual adjusted gross receipts in excess of 
    $50,000,000 but not exceeding $75,000,000 to the State and 
    17.4% of annual adjusted gross receipts in excess of 
    $50,000,000 but not exceeding $75,000,000 to the City of 
    Chicago;
        21.4% of annual adjusted gross receipts in excess of 
    $75,000,000 but not exceeding $100,000,000 to the State 
    and 18.6% of annual adjusted gross receipts in excess of 
    $75,000,000 but not exceeding $100,000,000 to the City of 
    Chicago;
        22.7% of annual adjusted gross receipts in excess of 
    $100,000,000 but not exceeding $150,000,000 to the State 
    and 19.8% of annual adjusted gross receipts in excess of 
    $100,000,000 but not exceeding $150,000,000 to the City of 
    Chicago;
        24.1% of annual adjusted gross receipts in excess of 
    $150,000,000 but not exceeding $225,000,000 to the State 
    and 20.9% of annual adjusted gross receipts in excess of 
    $150,000,000 but not exceeding $225,000,000 to the City of 
    Chicago;
        26.8% of annual adjusted gross receipts in excess of 
    $225,000,000 but not exceeding $1,000,000,000 to the State 
    and 23.2% of annual adjusted gross receipts in excess of 
    $225,000,000 but not exceeding $1,000,000,000 to the City 
    of Chicago;
        40% of annual adjusted gross receipts in excess of 
    $1,000,000,000 to the State and 34.7% of annual gross 
    receipts in excess of $1,000,000,000 to the City of 
    Chicago.
    The privilege tax for table games shall be at the 
following rates:
        8.1% of annual adjusted gross receipts up to and 
    including $25,000,000 to the State and 6.9% of annual 
    adjusted gross receipts up to and including $25,000,000 to 
    the City of Chicago;
        10.7% of annual adjusted gross receipts in excess of 
    $25,000,000 but not exceeding $75,000,000 to the State and 
    9.3% of annual adjusted gross receipts in excess of 
    $25,000,000 but not exceeding $75,000,000 to the City of 
    Chicago;
        11.2% of annual adjusted gross receipts in excess of 
    $75,000,000 but not exceeding $175,000,000 to the State 
    and 9.8% of annual adjusted gross receipts in excess of 
    $75,000,000 but not exceeding $175,000,000 to the City of 
    Chicago;
        13.5% of annual adjusted gross receipts in excess of 
    $175,000,000 but not exceeding $225,000,000 to the State 
    and 11.5% of annual adjusted gross receipts in excess of 
    $175,000,000 but not exceeding $225,000,000 to the City of 
    Chicago;
        15.1% of annual adjusted gross receipts in excess of 
    $225,000,000 but not exceeding $275,000,000 to the State 
    and 12.9% of annual adjusted gross receipts in excess of 
    $225,000,000 but not exceeding $275,000,000 to the City of 
    Chicago;
        16.2% of annual adjusted gross receipts in excess of 
    $275,000,000 but not exceeding $375,000,000 to the State 
    and 13.8% of annual adjusted gross receipts in excess of 
    $275,000,000 but not exceeding $375,000,000 to the City of 
    Chicago;
        18.9% of annual adjusted gross receipts in excess of 
    $375,000,000 to the State and 16.1% of annual gross 
    receipts in excess of $375,000,000 to the City of Chicago. 
    For the imposition of the privilege tax in this subsection 
(a-5), amounts paid pursuant to item (1) of subsection (b) of 
Section 56 of the Illinois Horse Racing Act of 1975 shall not 
be included in the determination of adjusted gross receipts. 
    (3) Notwithstanding the provisions of this subsection 
(a-5), for the first 10 years that the privilege tax is imposed 
under this subsection (a-5) or until the year preceding the 
calendar year in which paragraph (4) becomes operative, 
whichever occurs first, the privilege tax shall be imposed on 
the modified annual adjusted gross receipts of a riverboat or 
casino conducting gambling operations in the City of East St. 
Louis, unless:
        (1) the riverboat or casino fails to employ at least 
    450 people, except no minimum employment shall be required 
    during 2020 and 2021 or during periods that the riverboat 
    or casino is closed on orders of State officials for 
    public health emergencies or other emergencies not caused 
    by the riverboat or casino;
        (2) the riverboat or casino fails to maintain 
    operations in a manner consistent with this Act or is not a 
    viable riverboat or casino subject to the approval of the 
    Board; or
        (3) the owners licensee is not an entity in which 
    employees participate in an employee stock ownership plan 
    or in which the owners licensee sponsors a 401(k) 
    retirement plan and makes a matching employer contribution 
    equal to at least one-quarter of the first 12% or one-half 
    of the first 6% of each participating employee's 
    contribution, not to exceed any limitations under federal 
    laws and regulations. 
    (4) Notwithstanding the provisions of this subsection 
(a-5), for 10 calendar years beginning in the year that 
gambling operations commence either in a temporary or 
permanent facility at an organization gaming facility located 
in the City of Collinsville if the facility commences 
operations within 3 years of the effective date of the changes 
made to this Section by this amendatory Act of the 103rd 
General Assembly, the privilege tax imposed under this 
subsection (a-5) on a riverboat or casino conducting gambling 
operations in the City of East St. Louis shall be reduced, if 
applicable, by an amount equal to the difference in adjusted 
gross receipts for the 2022 calendar year less the current 
year's adjusted gross receipts, unless:
        (A) the riverboat or casino fails to employ at least 
    350 people, except that no minimum employment shall be 
    required during periods that the riverboat or casino is 
    closed on orders of State officials for public health 
    emergencies or other emergencies not caused by the 
    riverboat or casino;
        (B) the riverboat or casino fails to maintain 
    operations in a manner consistent with this Act or is not a 
    viable riverboat or casino subject to the approval of the 
    Board; or
        (C) the riverboat or casino fails to submit audited 
    financial statements to the Board prepared by an 
    accounting firm that has been preapproved by the Board and 
    such statements were prepared in accordance with the 
    provisions of the Financial Accounting Standards Board 
    Accounting Standards Codification under nongovernmental 
    accounting principles generally accepted in the United 
    States. 
    As used in this subsection (a-5), "modified annual 
adjusted gross receipts" means:
        (A) for calendar year 2020, the annual adjusted gross 
    receipts for the current year minus the difference between 
    an amount equal to the average annual adjusted gross 
    receipts from a riverboat or casino conducting gambling 
    operations in the City of East St. Louis for 2014, 2015, 
    2016, 2017, and 2018 and the annual adjusted gross 
    receipts for 2018; 
        (B) for calendar year 2021, the annual adjusted gross 
    receipts for the current year minus the difference between 
    an amount equal to the average annual adjusted gross 
    receipts from a riverboat or casino conducting gambling 
    operations in the City of East St. Louis for 2014, 2015, 
    2016, 2017, and 2018 and the annual adjusted gross 
    receipts for 2019; and 
        (C) for calendar years 2022 through 2029, the annual 
    adjusted gross receipts for the current year minus the 
    difference between an amount equal to the average annual 
    adjusted gross receipts from a riverboat or casino 
    conducting gambling operations in the City of East St. 
    Louis for 3 years preceding the current year and the 
    annual adjusted gross receipts for the immediately 
    preceding year. 
    (a-6) From June 28, 2019 (the effective date of Public Act 
101-31) until June 30, 2023, an owners licensee that conducted 
gambling operations prior to January 1, 2011 shall receive a 
dollar-for-dollar credit against the tax imposed under this 
Section for any renovation or construction costs paid by the 
owners licensee, but in no event shall the credit exceed 
$2,000,000.
    Additionally, from June 28, 2019 (the effective date of 
Public Act 101-31) until December 31, 2024, an owners licensee 
that (i) is located within 15 miles of the Missouri border, and 
(ii) has at least 3 riverboats, casinos, or their equivalent 
within a 45-mile radius, may be authorized to relocate to a new 
location with the approval of both the unit of local 
government designated as the home dock and the Board, so long 
as the new location is within the same unit of local government 
and no more than 3 miles away from its original location. Such 
owners licensee shall receive a credit against the tax imposed 
under this Section equal to 8% of the total project costs, as 
approved by the Board, for any renovation or construction 
costs paid by the owners licensee for the construction of the 
new facility, provided that the new facility is operational by 
July 1, 2024. In determining whether or not to approve a 
relocation, the Board must consider the extent to which the 
relocation will diminish the gaming revenues received by other 
Illinois gaming facilities.
    (a-7) Beginning in the initial adjustment year and through 
the final adjustment year, if the total obligation imposed 
pursuant to either subsection (a-5) or (a-6) will result in an 
owners licensee receiving less after-tax adjusted gross 
receipts than it received in calendar year 2018, then the 
total amount of privilege taxes that the owners licensee is 
required to pay for that calendar year shall be reduced to the 
extent necessary so that the after-tax adjusted gross receipts 
in that calendar year equals the after-tax adjusted gross 
receipts in calendar year 2018, but the privilege tax 
reduction shall not exceed the annual adjustment cap. If 
pursuant to this subsection (a-7), the total obligation 
imposed pursuant to either subsection (a-5) or (a-6) shall be 
reduced, then the owners licensee shall not receive a refund 
from the State at the end of the subject calendar year but 
instead shall be able to apply that amount as a credit against 
any payments it owes to the State in the following calendar 
year to satisfy its total obligation under either subsection 
(a-5) or (a-6). The credit for the final adjustment year shall 
occur in the calendar year following the final adjustment 
year.
    If an owners licensee that conducted gambling operations 
prior to January 1, 2019 expands its riverboat or casino, 
including, but not limited to, with respect to its gaming 
floor, additional non-gaming amenities such as restaurants, 
bars, and hotels and other additional facilities, and incurs 
construction and other costs related to such expansion from 
June 28, 2019 (the effective date of Public Act 101-31) until 
June 28, 2029 June 28, 2024 (the 5th anniversary of the 
effective date of Public Act 101-31), then for each 
$15,000,000 spent for any such construction or other costs 
related to expansion paid by the owners licensee, the final 
adjustment year shall be extended by one year and the annual 
adjustment cap shall increase by 0.2% of adjusted gross 
receipts during each calendar year until and including the 
final adjustment year. No further modifications to the final 
adjustment year or annual adjustment cap shall be made after 
$75,000,000 is incurred in construction or other costs related 
to expansion so that the final adjustment year shall not 
extend beyond the 9th calendar year after the initial 
adjustment year, not including the initial adjustment year, 
and the annual adjustment cap shall not exceed 4% of adjusted 
gross receipts in a particular calendar year. Construction and 
other costs related to expansion shall include all project 
related costs, including, but not limited to, all hard and 
soft costs, financing costs, on or off-site ground, road or 
utility work, cost of gaming equipment and all other personal 
property, initial fees assessed for each incremental gaming 
position, and the cost of incremental land acquired for such 
expansion. Soft costs shall include, but not be limited to, 
legal fees, architect, engineering and design costs, other 
consultant costs, insurance cost, permitting costs, and 
pre-opening costs related to the expansion, including, but not 
limited to, any of the following: marketing, real estate 
taxes, personnel, training, travel and out-of-pocket expenses, 
supply, inventory, and other costs, and any other project 
related soft costs. 
    To be eligible for the tax credits in subsection (a-6), 
all construction contracts shall include a requirement that 
the contractor enter into a project labor agreement with the 
building and construction trades council with geographic 
jurisdiction of the location of the proposed gaming facility.
    Notwithstanding any other provision of this subsection 
(a-7), this subsection (a-7) does not apply to an owners 
licensee unless such owners licensee spends at least 
$15,000,000 on construction and other costs related to its 
expansion, excluding the initial fees assessed for each 
incremental gaming position. 
    This subsection (a-7) does not apply to owners licensees 
authorized pursuant to subsection (e-5) of Section 7 of this 
Act.
    For purposes of this subsection (a-7):
    "Building and construction trades council" means any 
organization representing multiple construction entities that 
are monitoring or attentive to compliance with public or 
workers' safety laws, wage and hour requirements, or other 
statutory requirements or that are making or maintaining 
collective bargaining agreements. 
    "Initial adjustment year" means the year commencing on 
January 1 of the calendar year immediately following the 
earlier of the following: 
        (1) the commencement of gambling operations, either in 
    a temporary or permanent facility, with respect to the 
    owners license authorized under paragraph (1) of 
    subsection (e-5) of Section 7 of this Act; or
        (2) June 28, 2021 (24 months after the effective date 
    of Public Act 101-31); 
provided the initial adjustment year shall not commence 
earlier than June 28, 2020 (12 months after the effective date 
of Public Act 101-31). 
    "Final adjustment year" means the 2nd calendar year after 
the initial adjustment year, not including the initial 
adjustment year, and as may be extended further as described 
in this subsection (a-7). 
    "Annual adjustment cap" means 3% of adjusted gross 
receipts in a particular calendar year, and as may be 
increased further as otherwise described in this subsection 
(a-7). 
    (a-8) Riverboat gambling operations conducted by a 
licensed manager on behalf of the State are not subject to the 
tax imposed under this Section.
    (a-9) Beginning on January 1, 2020, the calculation of 
gross receipts or adjusted gross receipts, for the purposes of 
this Section, for a riverboat, a casino, or an organization 
gaming facility shall not include the dollar amount of 
non-cashable vouchers, coupons, and electronic promotions 
redeemed by wagerers upon the riverboat, in the casino, or in 
the organization gaming facility up to and including an amount 
not to exceed 20% of a riverboat's, a casino's, or an 
organization gaming facility's adjusted gross receipts.
    The Illinois Gaming Board shall submit to the General 
Assembly a comprehensive report no later than March 31, 2023 
detailing, at a minimum, the effect of removing non-cashable 
vouchers, coupons, and electronic promotions from this 
calculation on net gaming revenues to the State in calendar 
years 2020 through 2022, the increase or reduction in wagerers 
as a result of removing non-cashable vouchers, coupons, and 
electronic promotions from this calculation, the effect of the 
tax rates in subsection (a-5) on net gaming revenues to this 
State, and proposed modifications to the calculation. 
    (a-10) The taxes imposed by this Section shall be paid by 
the licensed owner or the organization gaming licensee to the 
Board not later than 5:00 o'clock p.m. of the day after the day 
when the wagers were made.
    (a-15) If the privilege tax imposed under subsection (a-3) 
is no longer imposed pursuant to item (i) of the last paragraph 
of subsection (a-3), then by June 15 of each year, each owners 
licensee, other than an owners licensee that admitted 
1,000,000 persons or fewer in calendar year 2004, must, in 
addition to the payment of all amounts otherwise due under 
this Section, pay to the Board a reconciliation payment in the 
amount, if any, by which the licensed owner's base amount 
exceeds the amount of net privilege tax paid by the licensed 
owner to the Board in the then current State fiscal year. A 
licensed owner's net privilege tax obligation due for the 
balance of the State fiscal year shall be reduced up to the 
total of the amount paid by the licensed owner in its June 15 
reconciliation payment. The obligation imposed by this 
subsection (a-15) is binding on any person, firm, corporation, 
or other entity that acquires an ownership interest in any 
such owners license. The obligation imposed under this 
subsection (a-15) terminates on the earliest of: (i) July 1, 
2007, (ii) the first day after August 23, 2005 (the effective 
date of Public Act 94-673) that riverboat gambling operations 
are conducted pursuant to a dormant license, (iii) the first 
day that riverboat gambling operations are conducted under the 
authority of an owners license that is in addition to the 10 
owners licenses initially authorized under this Act, or (iv) 
the first day that a licensee under the Illinois Horse Racing 
Act of 1975 conducts gaming operations with slot machines or 
other electronic gaming devices. The Board must reduce the 
obligation imposed under this subsection (a-15) by an amount 
the Board deems reasonable for any of the following reasons: 
(A) an act or acts of God, (B) an act of bioterrorism or 
terrorism or a bioterrorism or terrorism threat that was 
investigated by a law enforcement agency, or (C) a condition 
beyond the control of the owners licensee that does not result 
from any act or omission by the owners licensee or any of its 
agents and that poses a hazardous threat to the health and 
safety of patrons. If an owners licensee pays an amount in 
excess of its liability under this Section, the Board shall 
apply the overpayment to future payments required under this 
Section.
    For purposes of this subsection (a-15):
    "Act of God" means an incident caused by the operation of 
an extraordinary force that cannot be foreseen, that cannot be 
avoided by the exercise of due care, and for which no person 
can be held liable. 
    "Base amount" means the following:
        For a riverboat in Alton, $31,000,000. 
        For a riverboat in East Peoria, $43,000,000. 
        For the Empress riverboat in Joliet, $86,000,000. 
        For a riverboat in Metropolis, $45,000,000. 
        For the Harrah's riverboat in Joliet, $114,000,000. 
        For a riverboat in Aurora, $86,000,000. 
        For a riverboat in East St. Louis, $48,500,000. 
        For a riverboat in Elgin, $198,000,000. 
    "Dormant license" has the meaning ascribed to it in 
subsection (a-3). 
    "Net privilege tax" means all privilege taxes paid by a 
licensed owner to the Board under this Section, less all 
payments made from the State Gaming Fund pursuant to 
subsection (b) of this Section.
    The changes made to this subsection (a-15) by Public Act 
94-839 are intended to restate and clarify the intent of 
Public Act 94-673 with respect to the amount of the payments 
required to be made under this subsection by an owners 
licensee to the Board. 
    (b) From the tax revenue from riverboat or casino gambling 
deposited in the State Gaming Fund under this Section, an 
amount equal to 5% of adjusted gross receipts generated by a 
riverboat or a casino, other than a riverboat or casino 
designated in paragraph (1), (3), or (4) of subsection (e-5) 
of Section 7, shall be paid monthly, subject to appropriation 
by the General Assembly, to the unit of local government in 
which the casino is located or that is designated as the home 
dock of the riverboat. Notwithstanding anything to the 
contrary, beginning on the first day that an owners licensee 
under paragraph (1), (2), (3), (4), (5), or (6) of subsection 
(e-5) of Section 7 conducts gambling operations, either in a 
temporary facility or a permanent facility, and for 2 years 
thereafter, a unit of local government designated as the home 
dock of a riverboat whose license was issued before January 1, 
2019, other than a riverboat conducting gambling operations in 
the City of East St. Louis, shall not receive less under this 
subsection (b) than the amount the unit of local government 
received under this subsection (b) in calendar year 2018. 
Notwithstanding anything to the contrary and because the City 
of East St. Louis is a financially distressed city, beginning 
on the first day that an owners licensee under paragraph (1), 
(2), (3), (4), (5), or (6) of subsection (e-5) of Section 7 
conducts gambling operations, either in a temporary facility 
or a permanent facility, and for 10 years thereafter, a unit of 
local government designated as the home dock of a riverboat 
conducting gambling operations in the City of East St. Louis 
shall not receive less under this subsection (b) than the 
amount the unit of local government received under this 
subsection (b) in calendar year 2018. 
    From the tax revenue deposited in the State Gaming Fund 
pursuant to riverboat or casino gambling operations conducted 
by a licensed manager on behalf of the State, an amount equal 
to 5% of adjusted gross receipts generated pursuant to those 
riverboat or casino gambling operations shall be paid monthly, 
subject to appropriation by the General Assembly, to the unit 
of local government that is designated as the home dock of the 
riverboat upon which those riverboat gambling operations are 
conducted or in which the casino is located.
    From the tax revenue from riverboat or casino gambling 
deposited in the State Gaming Fund under this Section, an 
amount equal to 5% of the adjusted gross receipts generated by 
a riverboat designated in paragraph (3) of subsection (e-5) of 
Section 7 shall be divided and remitted monthly, subject to 
appropriation, as follows: 70% to Waukegan, 10% to Park City, 
15% to North Chicago, and 5% to Lake County.
    From the tax revenue from riverboat or casino gambling 
deposited in the State Gaming Fund under this Section, an 
amount equal to 5% of the adjusted gross receipts generated by 
a riverboat designated in paragraph (4) of subsection (e-5) of 
Section 7 shall be remitted monthly, subject to appropriation, 
as follows: 70% to the City of Rockford, 5% to the City of 
Loves Park, 5% to the Village of Machesney, and 20% to 
Winnebago County.
    From the tax revenue from riverboat or casino gambling 
deposited in the State Gaming Fund under this Section, an 
amount equal to 5% of the adjusted gross receipts generated by 
a riverboat designated in paragraph (5) of subsection (e-5) of 
Section 7 shall be remitted monthly, subject to appropriation, 
as follows: 2% to the unit of local government in which the 
riverboat or casino is located, and 3% shall be distributed: 
(A) in accordance with a regional capital development plan 
entered into by the following communities: Village of Beecher, 
City of Blue Island, Village of Burnham, City of Calumet City, 
Village of Calumet Park, City of Chicago Heights, City of 
Country Club Hills, Village of Crestwood, Village of Crete, 
Village of Dixmoor, Village of Dolton, Village of East Hazel 
Crest, Village of Flossmoor, Village of Ford Heights, Village 
of Glenwood, City of Harvey, Village of Hazel Crest, Village 
of Homewood, Village of Lansing, Village of Lynwood, City of 
Markham, Village of Matteson, Village of Midlothian, Village 
of Monee, City of Oak Forest, Village of Olympia Fields, 
Village of Orland Hills, Village of Orland Park, City of Palos 
Heights, Village of Park Forest, Village of Phoenix, Village 
of Posen, Village of Richton Park, Village of Riverdale, 
Village of Robbins, Village of Sauk Village, Village of South 
Chicago Heights, Village of South Holland, Village of Steger, 
Village of Thornton, Village of Tinley Park, Village of 
University Park, and Village of Worth; or (B) if no regional 
capital development plan exists, equally among the communities 
listed in item (A) to be used for capital expenditures or 
public pension payments, or both. 
    Units of local government may refund any portion of the 
payment that they receive pursuant to this subsection (b) to 
the riverboat or casino.
    (b-4) Beginning on the first day a licensee under 
subsection (e-5) of Section 7 conducts gambling operations or 
30 days after the effective date of this amendatory Act of the 
103rd General Assembly, whichever is sooner, either in a 
temporary facility or a permanent facility, and ending on July 
31, 2042, from the tax revenue deposited in the State Gaming 
Fund under this Section, $5,000,000 shall be paid annually, 
subject to appropriation, to the host municipality of that 
owners licensee of a license issued or re-issued pursuant to 
Section 7.1 of this Act before January 1, 2012. Payments 
received by the host municipality pursuant to this subsection 
(b-4) may not be shared with any other unit of local 
government. 
    (b-5) Beginning on June 28, 2019 (the effective date of 
Public Act 101-31), from the tax revenue deposited in the 
State Gaming Fund under this Section, an amount equal to 3% of 
adjusted gross receipts generated by each organization gaming 
facility located outside Madison County shall be paid monthly, 
subject to appropriation by the General Assembly, to a 
municipality other than the Village of Stickney in which each 
organization gaming facility is located or, if the 
organization gaming facility is not located within a 
municipality, to the county in which the organization gaming 
facility is located, except as otherwise provided in this 
Section. From the tax revenue deposited in the State Gaming 
Fund under this Section, an amount equal to 3% of adjusted 
gross receipts generated by an organization gaming facility 
located in the Village of Stickney shall be paid monthly, 
subject to appropriation by the General Assembly, as follows: 
25% to the Village of Stickney, 5% to the City of Berwyn, 50% 
to the Town of Cicero, and 20% to the Stickney Public Health 
District.
    From the tax revenue deposited in the State Gaming Fund 
under this Section, an amount equal to 5% of adjusted gross 
receipts generated by an organization gaming facility located 
in the City of Collinsville shall be paid monthly, subject to 
appropriation by the General Assembly, as follows: 30% to the 
City of Alton, 30% to the City of East St. Louis, and 40% to 
the City of Collinsville. 
    Municipalities and counties may refund any portion of the 
payment that they receive pursuant to this subsection (b-5) to 
the organization gaming facility. 
    (b-6) Beginning on June 28, 2019 (the effective date of 
Public Act 101-31), from the tax revenue deposited in the 
State Gaming Fund under this Section, an amount equal to 2% of 
adjusted gross receipts generated by an organization gaming 
facility located outside Madison County shall be paid monthly, 
subject to appropriation by the General Assembly, to the 
county in which the organization gaming facility is located 
for the purposes of its criminal justice system or health care 
system. 
    Counties may refund any portion of the payment that they 
receive pursuant to this subsection (b-6) to the organization 
gaming facility. 
    (b-7) From the tax revenue from the organization gaming 
licensee located in one of the following townships of Cook 
County: Bloom, Bremen, Calumet, Orland, Rich, Thornton, or 
Worth, an amount equal to 5% of the adjusted gross receipts 
generated by that organization gaming licensee shall be 
remitted monthly, subject to appropriation, as follows: 2% to 
the unit of local government in which the organization gaming 
licensee is located, and 3% shall be distributed: (A) in 
accordance with a regional capital development plan entered 
into by the following communities: Village of Beecher, City of 
Blue Island, Village of Burnham, City of Calumet City, Village 
of Calumet Park, City of Chicago Heights, City of Country Club 
Hills, Village of Crestwood, Village of Crete, Village of 
Dixmoor, Village of Dolton, Village of East Hazel Crest, 
Village of Flossmoor, Village of Ford Heights, Village of 
Glenwood, City of Harvey, Village of Hazel Crest, Village of 
Homewood, Village of Lansing, Village of Lynwood, City of 
Markham, Village of Matteson, Village of Midlothian, Village 
of Monee, City of Oak Forest, Village of Olympia Fields, 
Village of Orland Hills, Village of Orland Park, City of Palos 
Heights, Village of Park Forest, Village of Phoenix, Village 
of Posen, Village of Richton Park, Village of Riverdale, 
Village of Robbins, Village of Sauk Village, Village of South 
Chicago Heights, Village of South Holland, Village of Steger, 
Village of Thornton, Village of Tinley Park, Village of 
University Park, and Village of Worth; or (B) if no regional 
capital development plan exists, equally among the communities 
listed in item (A) to be used for capital expenditures or 
public pension payments, or both. 
    (b-8) In lieu of the payments under subsection (b) of this 
Section, from the tax revenue deposited in the State Gaming 
Fund pursuant to riverboat or casino gambling operations 
conducted by an owners licensee under paragraph (1) of 
subsection (e-5) of Section 7, an amount equal to the tax 
revenue generated from the privilege tax imposed by paragraph 
(2) of subsection (a-5) that is to be paid to the City of 
Chicago shall be paid monthly, subject to appropriation by the 
General Assembly, as follows: (1) an amount equal to 0.5% of 
the annual adjusted gross receipts generated by the owners 
licensee under paragraph (1) of subsection (e-5) of Section 7 
to the home rule county in which the owners licensee is located 
for the purpose of enhancing the county's criminal justice 
system; and (2) the balance to the City of Chicago and shall be 
expended or obligated by the City of Chicago for pension 
payments in accordance with Public Act 99-506. 
    (c) Appropriations, as approved by the General Assembly, 
may be made from the State Gaming Fund to the Board (i) for the 
administration and enforcement of this Act and the Video 
Gaming Act, (ii) for distribution to the Illinois State Police 
and to the Department of Revenue for the enforcement of this 
Act and the Video Gaming Act, and (iii) to the Department of 
Human Services for the administration of programs to treat 
problem gambling, including problem gambling from sports 
wagering. The Board's annual appropriations request must 
separately state its funding needs for the regulation of 
gaming authorized under Section 7.7, riverboat gaming, casino 
gaming, video gaming, and sports wagering.
    (c-2) An amount equal to 2% of the adjusted gross receipts 
generated by an organization gaming facility located within a 
home rule county with a population of over 3,000,000 
inhabitants shall be paid, subject to appropriation from the 
General Assembly, from the State Gaming Fund to the home rule 
county in which the organization gaming licensee is located 
for the purpose of enhancing the county's criminal justice 
system. 
    (c-3) Appropriations, as approved by the General Assembly, 
may be made from the tax revenue deposited into the State 
Gaming Fund from organization gaming licensees pursuant to 
this Section for the administration and enforcement of this 
Act. 
    (c-4) After payments required under subsections (b), 
(b-5), (b-6), (b-7), (c), (c-2), and (c-3) have been made from 
the tax revenue from organization gaming licensees deposited 
into the State Gaming Fund under this Section, all remaining 
amounts from organization gaming licensees shall be 
transferred into the Capital Projects Fund.
    (c-5) (Blank).
    (c-10) Each year the General Assembly shall appropriate 
from the General Revenue Fund to the Education Assistance Fund 
an amount equal to the amount paid into the Horse Racing Equity 
Fund pursuant to subsection (c-5) in the prior calendar year.
    (c-15) After the payments required under subsections (b), 
(c), and (c-5) have been made, an amount equal to 2% of the 
adjusted gross receipts of (1) an owners licensee that 
relocates pursuant to Section 11.2, (2) an owners licensee 
conducting riverboat gambling operations pursuant to an owners 
license that is initially issued after June 25, 1999, or (3) 
the first riverboat gambling operations conducted by a 
licensed manager on behalf of the State under Section 7.3, 
whichever comes first, shall be paid, subject to appropriation 
from the General Assembly, from the State Gaming Fund to each 
home rule county with a population of over 3,000,000 
inhabitants for the purpose of enhancing the county's criminal 
justice system.
    (c-20) Each year the General Assembly shall appropriate 
from the General Revenue Fund to the Education Assistance Fund 
an amount equal to the amount paid to each home rule county 
with a population of over 3,000,000 inhabitants pursuant to 
subsection (c-15) in the prior calendar year.
    (c-21) After the payments required under subsections (b), 
(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), and (c-4) have 
been made, an amount equal to 0.5% of the adjusted gross 
receipts generated by the owners licensee under paragraph (1) 
of subsection (e-5) of Section 7 shall be paid monthly, 
subject to appropriation from the General Assembly, from the 
State Gaming Fund to the home rule county in which the owners 
licensee is located for the purpose of enhancing the county's 
criminal justice system. 
    (c-22) After the payments required under subsections (b), 
(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), (c-4), and 
(c-21) have been made, an amount equal to 2% of the adjusted 
gross receipts generated by the owners licensee under 
paragraph (5) of subsection (e-5) of Section 7 shall be paid, 
subject to appropriation from the General Assembly, from the 
State Gaming Fund to the home rule county in which the owners 
licensee is located for the purpose of enhancing the county's 
criminal justice system. 
    (c-25) From July 1, 2013 and each July 1 thereafter 
through July 1, 2019, $1,600,000 shall be transferred from the 
State Gaming Fund to the Chicago State University Education 
Improvement Fund.
    On July 1, 2020 and each July 1 thereafter, $3,000,000 
shall be transferred from the State Gaming Fund to the Chicago 
State University Education Improvement Fund. 
    (c-30) On July 1, 2013 or as soon as possible thereafter, 
$92,000,000 shall be transferred from the State Gaming Fund to 
the School Infrastructure Fund and $23,000,000 shall be 
transferred from the State Gaming Fund to the Horse Racing 
Equity Fund. 
    (c-35) Beginning on July 1, 2013, in addition to any 
amount transferred under subsection (c-30) of this Section, 
$5,530,000 shall be transferred monthly from the State Gaming 
Fund to the School Infrastructure Fund. 
    (d) From time to time, through June 30, 2021, the Board 
shall transfer the remainder of the funds generated by this 
Act into the Education Assistance Fund.
    (d-5) Beginning on July 1, 2021, on the last day of each 
month, or as soon thereafter as possible, after all the 
required expenditures, distributions, and transfers have been 
made from the State Gaming Fund for the month pursuant to 
subsections (b) through (c-35), at the direction of the Board, 
the Comptroller shall direct and the Treasurer shall transfer 
$22,500,000, along with any deficiencies in such amounts from 
prior months in the same fiscal year, from the State Gaming 
Fund to the Education Assistance Fund; then, at the direction 
of the Board, the Comptroller shall direct and the Treasurer 
shall transfer the remainder of the funds generated by this 
Act, if any, from the State Gaming Fund to the Capital Projects 
Fund. 
    (e) Nothing in this Act shall prohibit the unit of local 
government designated as the home dock of the riverboat from 
entering into agreements with other units of local government 
in this State or in other states to share its portion of the 
tax revenue.
    (f) To the extent practicable, the Board shall administer 
and collect the wagering taxes imposed by this Section in a 
manner consistent with the provisions of Sections 4, 5, 5a, 
5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of 
the Retailers' Occupation Tax Act and Section 3-7 of the 
Uniform Penalty and Interest Act.
(Source: P.A. 102-16, eff. 6-17-21; 102-538, eff. 8-20-21; 
102-689, eff. 12-17-21; 102-699, eff. 4-19-22; 103-8, eff. 
6-7-23; 103-574, eff. 12-8-23.)
 
ARTICLE 165.

 
    Section 165-5. The Illinois Local Library Act is amended 
by changing Section 4-9 as follows:
 
    (75 ILCS 5/4-9)  (from Ch. 81, par. 4-9)
    Sec. 4-9. In townships and in cities, villages and 
incorporated towns having a population of 500,000 or less, the 
board of trustees shall require the treasurer of such board or 
such other person as may be designated as the custodian of the 
moneys paid over to such board to give a bond to be approved by 
such board and in such amount, not less than 10% 50% of the 
total funds received by the library in the last fiscal year, 
conditioned that he will safely keep and pay over upon the 
order of such board all funds received and held by him for such 
board of trustees. For a library in a city, village, 
incorporated town or township, the board of library trustees 
may designate the treasurer of the corporate authority, or the 
supervisor in the case of a township, as the custodian of the 
library fund, and the bond given by the treasurer or the 
supervisor shall satisfy the bond requirements of this section 
when properly endorsed. The cost of any surety bond shall be 
borne by the library. As an alternative to a personal bond on 
the treasurer or custodian of funds, the board of trustees may 
require the treasurer or custodian to secure for the library 
an insurance policy or other insurance instrument that 
provides the library with coverage for negligent or 
intentional acts by library officials and employees that could 
result in the loss of library funds. The coverage shall be in 
an amount at least equal to 10% 50% of the average amount of 
the library's operating fund from the prior 3 fiscal years. 
The coverage shall be placed with an insurer approved by the 
board. The cost of any such coverage shall be borne by the 
library. The library shall provide the Illinois State Library 
a copy of the library's certificate of insurance at the time 
the library's annual report is filed. 
(Source: P.A. 97-101, eff. 1-1-12.)
 
    Section 165-10. The Illinois Library System Act is amended 
by changing Section 5 as follows:
 
    (75 ILCS 10/5)  (from Ch. 81, par. 115)
    Sec. 5. Each library system created as provided in Section 
4 of this Act shall be governed by a board of directors 
numbering at least 5 and no more than 15 persons, except as 
required by Section 6 for library systems in cities with a 
population of 500,000 or more. The board shall be 
representative of the variety of library interests in the 
system, and at least a majority shall be elected or selected 
from the governing boards of the member public libraries, with 
not more than one director representing a single member 
library. For library systems as defined in subparagraph (3) of 
the definition of "library system" in Section 2, the board 
members shall be representative of the types of libraries that 
library system serves. The number of directors, the manner of 
election or selection, the term of office and the provision 
for filling vacancies shall be determined by the system 
governing board except that all board members must be eligible 
electors in the geographical area of the system. No director 
of any library system, however, shall be permitted to serve 
for more than a total of 6 years unless 2 years have elapsed 
since his sixth year of service.
    The board of directors shall elect a president, secretary 
and treasurer. Before entering upon his duties, the treasurer 
shall be required to give a bond in an amount to be approved by 
the board, but in no case shall such amount be less than 10% 
50% of the system's area and per capita grant for the previous 
year, conditioned that he will safely keep and pay over upon 
the order of such board all funds received and held by him for 
the library system. As an alternative to a personal bond on the 
treasurer, the board of trustees may require the treasurer to 
secure for the system an insurance policy or other insurance 
instrument that provides the library with coverage for 
negligent or intentional acts by system officials and 
employees that could result in the loss of system funds. The 
coverage shall be in an amount at least equal to 10% 50% of the 
average amount of the system's operating fund from the prior 3 
fiscal years. The coverage shall be placed with an insurer 
approved by the board. The cost of any such coverage shall be 
borne by the system. The system shall provide the Illinois 
State Library a copy of the system's certificate of insurance 
at the time the system's annual report is filed. The funds of 
the library system shall be deposited in a bank or savings and 
loan association designated by the board of directors and 
shall be expended only under the direction of such board upon 
properly authenticated vouchers.
    No bank or savings and loan association shall receive 
public funds as permitted by this Section, unless it has 
complied with the requirements established pursuant to Section 
6 of the Public Funds Investment Act.
    The members of the board of directors of the library 
system shall serve without compensation but their actual and 
necessary expenses shall be a proper charge against the 
library fund.
(Source: P.A. 97-101, eff. 1-1-12.)
 
    Section 165-15. The Public Library District Act of 1991 is 
amended by changing Section 30-45 as follows:
 
    (75 ILCS 16/30-45)
    Sec. 30-45. Duties of officers. 
    (a) The duties of the officers of the board are as provided 
in this Section.
    (b) The president shall preside over all meetings, appoint 
members of committees authorized by the district's 
regulations, and perform other duties specified by the 
district's regulations, ordinances, or other appropriate 
action. In the president's absence, the vice president shall 
preside at meetings. The president shall not have or exercise 
veto powers.
    (c) The vice president's duties shall be prescribed by 
regulations.
    (d) The treasurer shall keep and maintain accounts and 
records of the district during the treasurer's term in office, 
indicating in those accounts and records a record of all 
receipts, disbursements, and balances in any funds.
    Annual audit and financial report requirements shall 
conform with Section 3 of the Governmental Account Audit Act.
    (e) The treasurer shall give bond to the district to 
faithfully discharge the duties of the office and to account 
to the district for all district funds coming into the 
treasurer's hands. The bond shall be in an amount and with 
sureties approved by the board. The amount of the bond shall be 
based upon a minimum of 10% 50% of the total funds received by 
the district in the last previous fiscal year. The cost of any 
surety bond shall be borne by the district. As an alternative 
to a personal bond on the treasurer, the treasurer may secure 
for the district an insurance policy or other insurance 
instrument that provides the district with coverage for 
negligent or intentional acts by district officials and 
employees that could result in the loss of district funds. The 
coverage shall be in an amount at least equal to 10% 50% of the 
average amount of the district's operating fund from the prior 
3 fiscal years. The coverage shall be placed with an insurer 
approved by the board. The cost of any such coverage shall be 
borne by the district. The system shall provide the Illinois 
State Library a copy of the district's certificate of 
insurance at the time the district's annual report is filed.
    (f) Any person, entity, or public body or agency 
possessing district funds, property, or records shall, upon 
demand by any trustee, transfer and release the funds, 
property, or records to the treasurer.
    (g) The secretary shall keep and maintain appropriate 
records for his or her term in office and shall include in 
those records a record of the minutes of all meetings, the 
names of those in attendance, the ordinances enacted, the 
resolutions and regulations adopted, and all other pertinent 
written matter affecting the operation of the district. The 
secretary may administer oaths and affirmations for the 
purposes of this Act.
(Source: P.A. 97-101, eff. 1-1-12.)
 
ARTICLE 170.

 
    Section 170-1. Short title. This Act may be cited as the 
Illinois Gives Tax Credit Act. References in this Article to 
"this Act" mean this Article.
 
    Section 170-5. Definitions. As used in this Act:
    "Business entity" means a corporation (including a 
Subchapter S corporation), trust, estate, partnership, limited 
liability company, or sole proprietorship.
    "Credit-eligible endowment gift" means an endowment gift 
for which a taxpayer intends to apply for an income tax credit 
under this Act.
    "Department" means the Department of Revenue.
    "Donor advised fund" has the meaning given to that term in 
subsection (d) of Section 4966 of the Internal Revenue Code of 
1986.
    "Endowment gift" means an irrevocable contribution to a 
permanent endowment fund held by a qualified community 
foundation.
    "Permanent endowment fund" means a fund that (i) is held 
by a qualified community foundation, (ii) provides charitable 
grants exclusively for the benefit of residents of the State 
or charities and charitable projects located in the State, 
(iii) is intended to exist in perpetuity, (iv) has an annual 
spending rate based on the foundation spending policy, but not 
to exceed 7%, and (v) is not a donor advised fund.
    "Qualified community foundation" means a community 
foundation or similar publicly supported organization 
described in Section 170 (b)(1)(A)(vi) of the Internal Revenue 
Code of 1986 that is organized or operating in this State and 
that substantially complies with the national standards for 
U.S. community foundations established by the Community 
Foundations National Standards, as determined by the 
Department.
    "Taxpayer" means any individual who is subject to the tax 
imposed under subsections (a) and (b) of Section 201 of the 
Illinois Income Tax Act or any business entity that is subject 
to the tax imposed under subsections (a) and (b) of Section 201 
of the Illinois Income Tax Act.
 
    Section 170-10. Tax credit awards; limitations. 
    (a) For taxable years ending on or after December 31, 2025 
and ending before January 1, 2030, the Department shall award, 
in accordance with this Act, income tax credits to taxpayers 
who provide an endowment gift to a permanent endowment fund 
during the taxable year and receive a certificate of receipt 
under Section 170-15 for that gift. Subject to the limitations 
in this Section, the amount of the credit that may be awarded 
to a taxpayer by the Department under this Act is an amount 
equal to 25% of the endowment gift.
    (b) The aggregate amount of all Illinois Gives tax credits 
awarded by the Department under this Act in any calendar year 
may not exceed $5,000,000.
    (c) The aggregate amount of all Illinois Gives tax credits 
that the Department may award to any taxpayer under this Act in 
any calendar year may not exceed $100,000.
    (d) The amount of contributions to any specific qualified 
community foundation that are eligible for Illinois Gives tax 
credits under this Section in any calendar year shall not 
exceed $3,000,000.
    (e) Of the annual amount available for tax credits, 25% 
must be reserved for endowment gifts that do not exceed the 
small gift maximum set forth in this subsection. The small 
gift maximum is $25,000. For purposes of determining if a 
donation meets the small gift maximum, the amount of the 
credit authorization certificate under Section 170-15 shall be 
used.
    (f) For the purpose of this Section, a credit is 
considered to be awarded on the date the Department issues an 
approved contribution authorization certificate under Section 
170-15.
 
    Section 170-15. Applications for tax credits. 
    (a) The taxpayer shall apply to the Department, in the 
form and manner prescribed by the Department, for a 
contribution authorization certificate. A taxpayer who makes 
more than one credit-eligible endowment gift must make a 
separate application for each contribution authorization 
certificate. Applications under this subsection shall be 
reviewed by the Department and shall either be approved or 
denied. Each approved contribution authorization certificate 
shall be sent to the taxpayer within 3 business days after the 
certificate is approved. The Department shall maintain on its 
website a running total of: (i) the total amount of credits 
remaining under this Act for which taxpayers may apply for a 
contribution authorization certificate issued in the calendar 
year; (ii) the total amount of credits allocated during the 
calendar year for each specific community foundation; and 
(iii) the total amount remaining for the calendar year under 
the small gift maximum set forth in Section 170-10. Those 
running totals shall be updated every business day. 
    (b) The taxpayer shall make the endowment gift to the 
permanent endowment fund either prior to or within 10 business 
days after the taxpayer receives the approved contribution 
authorization certificate under subsection (a). The qualified 
community foundation shall, within 30 business days after 
receipt of an endowment gift for which a contribution 
authorization certificate has been approved by the Department 
under subsection (a), issue to the taxpayer a written 
certificate of receipt, which shall contain the information 
required by the Department by rule. No receipt shall be issued 
for amounts that are not actually received by the qualified 
community foundation within 10 business days after the 
taxpayer receives the approved contribution authorization 
certificate.
 
    Section 170-20. Approval to issue certificates of receipt. 
    (a) A qualified community foundation shall submit an 
application for approval to issue certificates of receipt, in 
the form and manner prescribed by the Department, provided 
that each application shall include:
        (1) documentary evidence that the qualified community 
    foundation meets the qualifications under Section 
    170(b)(1)(A)(vi) of the Internal Revenue Code and 
    substantially complies with the standards established by 
    Community Foundations National Standards;
        (2) certification that the qualified community 
    foundation holds a permanent endowment fund meeting the 
    criteria established in Section 170-5;
        (3) a list of the names and addresses of all members of 
    the governing board of the qualified community foundation; 
    and 
        (4) a copy of the most recent financial audit of the 
    qualified community foundation's accounts and records 
    conducted by an independent certified public accountant in 
    accordance with auditing standards generally accepted in 
    the United States, government auditing standards, and 
    rules adopted by the Department. 
    (b) The Department shall review and either approve or deny 
each application to issue certificates of receipt pursuant to 
this Act. Approval or denial of an application shall be made on 
a periodic basis. Applicants shall be notified of the 
Department's determination within 30 business days after the 
application is received.
 
    Section 170-25. Certificates of receipt. 
    (a) No qualified community foundation shall issue a 
certificate of receipt for any qualified contribution made by 
a taxpayer under this Act unless that qualified community 
foundation has been approved to issue certificates of receipt 
pursuant to Section 170-20 of this Act.
    (b) No qualified community foundation shall issue a 
certificate of receipt for a contribution made by a taxpayer 
unless the taxpayer has been issued a credit authorization 
certificate by the Department.
    (c) If a taxpayer makes a contribution to a qualified 
community foundation prior to the date by which the authorized 
contribution shall be made as provided in Section 170-15, the 
qualified community foundation shall, within 30 business days 
after receipt of the authorized contribution, issue to the 
taxpayer a written certificate of receipt.
    (d) If a taxpayer fails to make all or a portion of a 
contribution prior to the date by which such authorized 
contribution is required to be made, the taxpayer shall not be 
entitled to a certificate of receipt for that portion of the 
authorized contribution not made.
    (e) Each certificate of receipt shall state:
        (1) the name and address of the issuing qualified 
    community foundation; 
        (2) the taxpayer's name and address;
        (3) the date of each qualified contribution;
        (4) the amount of each qualified contribution;
        (5) the total qualified contribution amount; and
        (6) any other information that the Department deems 
    necessary.
    (f) Upon the issuance of a certificate of receipt, the 
issuing qualified community foundation shall, within 10 
business days after issuing the certificate of receipt, 
provide the Department with notification of the issuance of 
such certificate, in the form and manner prescribed by the 
Department, provided that such notification shall include:
        (1) the taxpayer's name and address;
        (2) the date of the issuance of a certificate of 
    receipt;
        (3) the qualified contribution date or dates and the 
    amounts contributed on such dates; 
        (4) the total qualified contribution listed on such 
    certificates;
        (5) the issuing qualified community foundation's name 
    and address; and
        (6) any other information the Department may deem 
    necessary.
    (g) Any portion of a contribution that a taxpayer fails to 
make by the date indicated on the authorized contribution 
certificate shall no longer be deducted from the cap 
prescribed in Section 170-10 of this Act.
 
    Section 170-30. Annual report. By March 31, 2026, and by 
March 31 of each subsequent year, the Department must submit 
an annual report to the Governor and the General Assembly 
concerning the activities conducted under this Act during the 
previous calendar year. The report must include a detailed 
listing of tax credits authorized under this Act by the 
Department. The report may not disclose any information if the 
disclosure would violate Section 917 of the Illinois Income 
Tax Act.
 
    Section 170-35. Rulemaking. The Department may adopt rules 
for the implementation of this Act.
 
    Section 170-90. The Illinois Income Tax Act is amended by 
changing Section 203 and by adding Section 241 as follows:
 
    (35 ILCS 5/203)
    Sec. 203. Base income defined. 
    (a) Individuals.
        (1) In general. In the case of an individual, base 
    income means an amount equal to the taxpayer's adjusted 
    gross income for the taxable year as modified by paragraph 
    (2).
        (2) Modifications. The adjusted gross income referred 
    to in paragraph (1) shall be modified by adding thereto 
    the sum of the following amounts:
            (A) An amount equal to all amounts paid or accrued 
        to the taxpayer as interest or dividends during the 
        taxable year to the extent excluded from gross income 
        in the computation of adjusted gross income, except 
        stock dividends of qualified public utilities 
        described in Section 305(e) of the Internal Revenue 
        Code;
            (B) An amount equal to the amount of tax imposed by 
        this Act to the extent deducted from gross income in 
        the computation of adjusted gross income for the 
        taxable year;
            (C) An amount equal to the amount received during 
        the taxable year as a recovery or refund of real 
        property taxes paid with respect to the taxpayer's 
        principal residence under the Revenue Act of 1939 and 
        for which a deduction was previously taken under 
        subparagraph (L) of this paragraph (2) prior to July 
        1, 1991, the retrospective application date of Article 
        4 of Public Act 87-17. In the case of multi-unit or 
        multi-use structures and farm dwellings, the taxes on 
        the taxpayer's principal residence shall be that 
        portion of the total taxes for the entire property 
        which is attributable to such principal residence;
            (D) An amount equal to the amount of the capital 
        gain deduction allowable under the Internal Revenue 
        Code, to the extent deducted from gross income in the 
        computation of adjusted gross income;
            (D-5) An amount, to the extent not included in 
        adjusted gross income, equal to the amount of money 
        withdrawn by the taxpayer in the taxable year from a 
        medical care savings account and the interest earned 
        on the account in the taxable year of a withdrawal 
        pursuant to subsection (b) of Section 20 of the 
        Medical Care Savings Account Act or subsection (b) of 
        Section 20 of the Medical Care Savings Account Act of 
        2000;
            (D-10) For taxable years ending after December 31, 
        1997, an amount equal to any eligible remediation 
        costs that the individual deducted in computing 
        adjusted gross income and for which the individual 
        claims a credit under subsection (l) of Section 201;
            (D-15) For taxable years 2001 and thereafter, an 
        amount equal to the bonus depreciation deduction taken 
        on the taxpayer's federal income tax return for the 
        taxable year under subsection (k) of Section 168 of 
        the Internal Revenue Code;
            (D-16) If the taxpayer sells, transfers, abandons, 
        or otherwise disposes of property for which the 
        taxpayer was required in any taxable year to make an 
        addition modification under subparagraph (D-15), then 
        an amount equal to the aggregate amount of the 
        deductions taken in all taxable years under 
        subparagraph (Z) with respect to that property.
            If the taxpayer continues to own property through 
        the last day of the last tax year for which a 
        subtraction is allowed with respect to that property 
        under subparagraph (Z) and for which the taxpayer was 
        allowed in any taxable year to make a subtraction 
        modification under subparagraph (Z), then an amount 
        equal to that subtraction modification. 
            The taxpayer is required to make the addition 
        modification under this subparagraph only once with 
        respect to any one piece of property;
            (D-17) An amount equal to the amount otherwise 
        allowed as a deduction in computing base income for 
        interest paid, accrued, or incurred, directly or 
        indirectly, (i) for taxable years ending on or after 
        December 31, 2004, to a foreign person who would be a 
        member of the same unitary business group but for the 
        fact that foreign person's business activity outside 
        the United States is 80% or more of the foreign 
        person's total business activity and (ii) for taxable 
        years ending on or after December 31, 2008, to a person 
        who would be a member of the same unitary business 
        group but for the fact that the person is prohibited 
        under Section 1501(a)(27) from being included in the 
        unitary business group because he or she is ordinarily 
        required to apportion business income under different 
        subsections of Section 304. The addition modification 
        required by this subparagraph shall be reduced to the 
        extent that dividends were included in base income of 
        the unitary group for the same taxable year and 
        received by the taxpayer or by a member of the 
        taxpayer's unitary business group (including amounts 
        included in gross income under Sections 951 through 
        964 of the Internal Revenue Code and amounts included 
        in gross income under Section 78 of the Internal 
        Revenue Code) with respect to the stock of the same 
        person to whom the interest was paid, accrued, or 
        incurred.
            This paragraph shall not apply to the following: 
                (i) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person who 
            is subject in a foreign country or state, other 
            than a state which requires mandatory unitary 
            reporting, to a tax on or measured by net income 
            with respect to such interest; or
                (ii) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person if 
            the taxpayer can establish, based on a 
            preponderance of the evidence, both of the 
            following:
                    (a) the person, during the same taxable 
                year, paid, accrued, or incurred, the interest 
                to a person that is not a related member, and
                    (b) the transaction giving rise to the 
                interest expense between the taxpayer and the 
                person did not have as a principal purpose the 
                avoidance of Illinois income tax, and is paid 
                pursuant to a contract or agreement that 
                reflects an arm's-length interest rate and 
                terms; or 
                (iii) the taxpayer can establish, based on 
            clear and convincing evidence, that the interest 
            paid, accrued, or incurred relates to a contract 
            or agreement entered into at arm's-length rates 
            and terms and the principal purpose for the 
            payment is not federal or Illinois tax avoidance; 
            or 
                (iv) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person if 
            the taxpayer establishes by clear and convincing 
            evidence that the adjustments are unreasonable; or 
            if the taxpayer and the Director agree in writing 
            to the application or use of an alternative method 
            of apportionment under Section 304(f). 
                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act 
            for any tax year beginning after the effective 
            date of this amendment provided such adjustment is 
            made pursuant to regulation adopted by the 
            Department and such regulations provide methods 
            and standards by which the Department will utilize 
            its authority under Section 404 of this Act; 
            (D-18) An amount equal to the amount of intangible 
        expenses and costs otherwise allowed as a deduction in 
        computing base income, and that were paid, accrued, or 
        incurred, directly or indirectly, (i) for taxable 
        years ending on or after December 31, 2004, to a 
        foreign person who would be a member of the same 
        unitary business group but for the fact that the 
        foreign person's business activity outside the United 
        States is 80% or more of that person's total business 
        activity and (ii) for taxable years ending on or after 
        December 31, 2008, to a person who would be a member of 
        the same unitary business group but for the fact that 
        the person is prohibited under Section 1501(a)(27) 
        from being included in the unitary business group 
        because he or she is ordinarily required to apportion 
        business income under different subsections of Section 
        304. The addition modification required by this 
        subparagraph shall be reduced to the extent that 
        dividends were included in base income of the unitary 
        group for the same taxable year and received by the 
        taxpayer or by a member of the taxpayer's unitary 
        business group (including amounts included in gross 
        income under Sections 951 through 964 of the Internal 
        Revenue Code and amounts included in gross income 
        under Section 78 of the Internal Revenue Code) with 
        respect to the stock of the same person to whom the 
        intangible expenses and costs were directly or 
        indirectly paid, incurred, or accrued. The preceding 
        sentence does not apply to the extent that the same 
        dividends caused a reduction to the addition 
        modification required under Section 203(a)(2)(D-17) of 
        this Act. As used in this subparagraph, the term 
        "intangible expenses and costs" includes (1) expenses, 
        losses, and costs for, or related to, the direct or 
        indirect acquisition, use, maintenance or management, 
        ownership, sale, exchange, or any other disposition of 
        intangible property; (2) losses incurred, directly or 
        indirectly, from factoring transactions or discounting 
        transactions; (3) royalty, patent, technical, and 
        copyright fees; (4) licensing fees; and (5) other 
        similar expenses and costs. For purposes of this 
        subparagraph, "intangible property" includes patents, 
        patent applications, trade names, trademarks, service 
        marks, copyrights, mask works, trade secrets, and 
        similar types of intangible assets.
            This paragraph shall not apply to the following:
                (i) any item of intangible expenses or costs 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a person who 
            is subject in a foreign country or state, other 
            than a state which requires mandatory unitary 
            reporting, to a tax on or measured by net income 
            with respect to such item; or
                (ii) any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, if the taxpayer can establish, based 
            on a preponderance of the evidence, both of the 
            following:
                    (a) the person during the same taxable 
                year paid, accrued, or incurred, the 
                intangible expense or cost to a person that is 
                not a related member, and
                    (b) the transaction giving rise to the 
                intangible expense or cost between the 
                taxpayer and the person did not have as a 
                principal purpose the avoidance of Illinois 
                income tax, and is paid pursuant to a contract 
                or agreement that reflects arm's-length terms; 
                or
                (iii) any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a person if 
            the taxpayer establishes by clear and convincing 
            evidence, that the adjustments are unreasonable; 
            or if the taxpayer and the Director agree in 
            writing to the application or use of an 
            alternative method of apportionment under Section 
            304(f); 
                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act 
            for any tax year beginning after the effective 
            date of this amendment provided such adjustment is 
            made pursuant to regulation adopted by the 
            Department and such regulations provide methods 
            and standards by which the Department will utilize 
            its authority under Section 404 of this Act; 
            (D-19) For taxable years ending on or after 
        December 31, 2008, an amount equal to the amount of 
        insurance premium expenses and costs otherwise allowed 
        as a deduction in computing base income, and that were 
        paid, accrued, or incurred, directly or indirectly, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304. The 
        addition modification required by this subparagraph 
        shall be reduced to the extent that dividends were 
        included in base income of the unitary group for the 
        same taxable year and received by the taxpayer or by a 
        member of the taxpayer's unitary business group 
        (including amounts included in gross income under 
        Sections 951 through 964 of the Internal Revenue Code 
        and amounts included in gross income under Section 78 
        of the Internal Revenue Code) with respect to the 
        stock of the same person to whom the premiums and costs 
        were directly or indirectly paid, incurred, or 
        accrued. The preceding sentence does not apply to the 
        extent that the same dividends caused a reduction to 
        the addition modification required under Section 
        203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this 
        Act; 
            (D-20) For taxable years beginning on or after 
        January 1, 2002 and ending on or before December 31, 
        2006, in the case of a distribution from a qualified 
        tuition program under Section 529 of the Internal 
        Revenue Code, other than (i) a distribution from a 
        College Savings Pool created under Section 16.5 of the 
        State Treasurer Act or (ii) a distribution from the 
        Illinois Prepaid Tuition Trust Fund, an amount equal 
        to the amount excluded from gross income under Section 
        529(c)(3)(B). For taxable years beginning on or after 
        January 1, 2007, in the case of a distribution from a 
        qualified tuition program under Section 529 of the 
        Internal Revenue Code, other than (i) a distribution 
        from a College Savings Pool created under Section 16.5 
        of the State Treasurer Act, (ii) a distribution from 
        the Illinois Prepaid Tuition Trust Fund, or (iii) a 
        distribution from a qualified tuition program under 
        Section 529 of the Internal Revenue Code that (I) 
        adopts and determines that its offering materials 
        comply with the College Savings Plans Network's 
        disclosure principles and (II) has made reasonable 
        efforts to inform in-state residents of the existence 
        of in-state qualified tuition programs by informing 
        Illinois residents directly and, where applicable, to 
        inform financial intermediaries distributing the 
        program to inform in-state residents of the existence 
        of in-state qualified tuition programs at least 
        annually, an amount equal to the amount excluded from 
        gross income under Section 529(c)(3)(B).
            For the purposes of this subparagraph (D-20), a 
        qualified tuition program has made reasonable efforts 
        if it makes disclosures (which may use the term 
        "in-state program" or "in-state plan" and need not 
        specifically refer to Illinois or its qualified 
        programs by name) (i) directly to prospective 
        participants in its offering materials or makes a 
        public disclosure, such as a website posting; and (ii) 
        where applicable, to intermediaries selling the 
        out-of-state program in the same manner that the 
        out-of-state program distributes its offering 
        materials;
            (D-20.5) For taxable years beginning on or after 
        January 1, 2018, in the case of a distribution from a 
        qualified ABLE program under Section 529A of the 
        Internal Revenue Code, other than a distribution from 
        a qualified ABLE program created under Section 16.6 of 
        the State Treasurer Act, an amount equal to the amount 
        excluded from gross income under Section 529A(c)(1)(B) 
        of the Internal Revenue Code; 
            (D-21) For taxable years beginning on or after 
        January 1, 2007, in the case of transfer of moneys from 
        a qualified tuition program under Section 529 of the 
        Internal Revenue Code that is administered by the 
        State to an out-of-state program, an amount equal to 
        the amount of moneys previously deducted from base 
        income under subsection (a)(2)(Y) of this Section;
            (D-21.5) For taxable years beginning on or after 
        January 1, 2018, in the case of the transfer of moneys 
        from a qualified tuition program under Section 529 or 
        a qualified ABLE program under Section 529A of the 
        Internal Revenue Code that is administered by this 
        State to an ABLE account established under an 
        out-of-state ABLE account program, an amount equal to 
        the contribution component of the transferred amount 
        that was previously deducted from base income under 
        subsection (a)(2)(Y) or subsection (a)(2)(HH) of this 
        Section; 
            (D-22) For taxable years beginning on or after 
        January 1, 2009, and prior to January 1, 2018, in the 
        case of a nonqualified withdrawal or refund of moneys 
        from a qualified tuition program under Section 529 of 
        the Internal Revenue Code administered by the State 
        that is not used for qualified expenses at an eligible 
        education institution, an amount equal to the 
        contribution component of the nonqualified withdrawal 
        or refund that was previously deducted from base 
        income under subsection (a)(2)(y) of this Section, 
        provided that the withdrawal or refund did not result 
        from the beneficiary's death or disability. For 
        taxable years beginning on or after January 1, 2018: 
        (1) in the case of a nonqualified withdrawal or 
        refund, as defined under Section 16.5 of the State 
        Treasurer Act, of moneys from a qualified tuition 
        program under Section 529 of the Internal Revenue Code 
        administered by the State, an amount equal to the 
        contribution component of the nonqualified withdrawal 
        or refund that was previously deducted from base 
        income under subsection (a)(2)(Y) of this Section, and 
        (2) in the case of a nonqualified withdrawal or refund 
        from a qualified ABLE program under Section 529A of 
        the Internal Revenue Code administered by the State 
        that is not used for qualified disability expenses, an 
        amount equal to the contribution component of the 
        nonqualified withdrawal or refund that was previously 
        deducted from base income under subsection (a)(2)(HH) 
        of this Section;
            (D-23) An amount equal to the credit allowable to 
        the taxpayer under Section 218(a) of this Act, 
        determined without regard to Section 218(c) of this 
        Act;
            (D-24) For taxable years ending on or after 
        December 31, 2017, an amount equal to the deduction 
        allowed under Section 199 of the Internal Revenue Code 
        for the taxable year; 
            (D-25) In the case of a resident, an amount equal 
        to the amount of tax for which a credit is allowed 
        pursuant to Section 201(p)(7) of this Act; 
    and by deducting from the total so obtained the sum of the 
    following amounts:
            (E) For taxable years ending before December 31, 
        2001, any amount included in such total in respect of 
        any compensation (including but not limited to any 
        compensation paid or accrued to a serviceman while a 
        prisoner of war or missing in action) paid to a 
        resident by reason of being on active duty in the Armed 
        Forces of the United States and in respect of any 
        compensation paid or accrued to a resident who as a 
        governmental employee was a prisoner of war or missing 
        in action, and in respect of any compensation paid to a 
        resident in 1971 or thereafter for annual training 
        performed pursuant to Sections 502 and 503, Title 32, 
        United States Code as a member of the Illinois 
        National Guard or, beginning with taxable years ending 
        on or after December 31, 2007, the National Guard of 
        any other state. For taxable years ending on or after 
        December 31, 2001, any amount included in such total 
        in respect of any compensation (including but not 
        limited to any compensation paid or accrued to a 
        serviceman while a prisoner of war or missing in 
        action) paid to a resident by reason of being a member 
        of any component of the Armed Forces of the United 
        States and in respect of any compensation paid or 
        accrued to a resident who as a governmental employee 
        was a prisoner of war or missing in action, and in 
        respect of any compensation paid to a resident in 2001 
        or thereafter by reason of being a member of the 
        Illinois National Guard or, beginning with taxable 
        years ending on or after December 31, 2007, the 
        National Guard of any other state. The provisions of 
        this subparagraph (E) are exempt from the provisions 
        of Section 250;
            (F) An amount equal to all amounts included in 
        such total pursuant to the provisions of Sections 
        402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and 
        408 of the Internal Revenue Code, or included in such 
        total as distributions under the provisions of any 
        retirement or disability plan for employees of any 
        governmental agency or unit, or retirement payments to 
        retired partners, which payments are excluded in 
        computing net earnings from self employment by Section 
        1402 of the Internal Revenue Code and regulations 
        adopted pursuant thereto;
            (G) The valuation limitation amount;
            (H) An amount equal to the amount of any tax 
        imposed by this Act which was refunded to the taxpayer 
        and included in such total for the taxable year;
            (I) An amount equal to all amounts included in 
        such total pursuant to the provisions of Section 111 
        of the Internal Revenue Code as a recovery of items 
        previously deducted from adjusted gross income in the 
        computation of taxable income;
            (J) An amount equal to those dividends included in 
        such total which were paid by a corporation which 
        conducts business operations in a River Edge 
        Redevelopment Zone or zones created under the River 
        Edge Redevelopment Zone Act, and conducts 
        substantially all of its operations in a River Edge 
        Redevelopment Zone or zones. This subparagraph (J) is 
        exempt from the provisions of Section 250;
            (K) An amount equal to those dividends included in 
        such total that were paid by a corporation that 
        conducts business operations in a federally designated 
        Foreign Trade Zone or Sub-Zone and that is designated 
        a High Impact Business located in Illinois; provided 
        that dividends eligible for the deduction provided in 
        subparagraph (J) of paragraph (2) of this subsection 
        shall not be eligible for the deduction provided under 
        this subparagraph (K);
            (L) For taxable years ending after December 31, 
        1983, an amount equal to all social security benefits 
        and railroad retirement benefits included in such 
        total pursuant to Sections 72(r) and 86 of the 
        Internal Revenue Code;
            (M) With the exception of any amounts subtracted 
        under subparagraph (N), an amount equal to the sum of 
        all amounts disallowed as deductions by (i) Sections 
        171(a)(2) and 265(a)(2) of the Internal Revenue Code, 
        and all amounts of expenses allocable to interest and 
        disallowed as deductions by Section 265(a)(1) of the 
        Internal Revenue Code; and (ii) for taxable years 
        ending on or after August 13, 1999, Sections 
        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the 
        Internal Revenue Code, plus, for taxable years ending 
        on or after December 31, 2011, Section 45G(e)(3) of 
        the Internal Revenue Code and, for taxable years 
        ending on or after December 31, 2008, any amount 
        included in gross income under Section 87 of the 
        Internal Revenue Code; the provisions of this 
        subparagraph are exempt from the provisions of Section 
        250;
            (N) An amount equal to all amounts included in 
        such total which are exempt from taxation by this 
        State either by reason of its statutes or Constitution 
        or by reason of the Constitution, treaties or statutes 
        of the United States; provided that, in the case of any 
        statute of this State that exempts income derived from 
        bonds or other obligations from the tax imposed under 
        this Act, the amount exempted shall be the interest 
        net of bond premium amortization;
            (O) An amount equal to any contribution made to a 
        job training project established pursuant to the Tax 
        Increment Allocation Redevelopment Act;
            (P) An amount equal to the amount of the deduction 
        used to compute the federal income tax credit for 
        restoration of substantial amounts held under claim of 
        right for the taxable year pursuant to Section 1341 of 
        the Internal Revenue Code or of any itemized deduction 
        taken from adjusted gross income in the computation of 
        taxable income for restoration of substantial amounts 
        held under claim of right for the taxable year;
            (Q) An amount equal to any amounts included in 
        such total, received by the taxpayer as an 
        acceleration in the payment of life, endowment or 
        annuity benefits in advance of the time they would 
        otherwise be payable as an indemnity for a terminal 
        illness;
            (R) An amount equal to the amount of any federal or 
        State bonus paid to veterans of the Persian Gulf War;
            (S) An amount, to the extent included in adjusted 
        gross income, equal to the amount of a contribution 
        made in the taxable year on behalf of the taxpayer to a 
        medical care savings account established under the 
        Medical Care Savings Account Act or the Medical Care 
        Savings Account Act of 2000 to the extent the 
        contribution is accepted by the account administrator 
        as provided in that Act;
            (T) An amount, to the extent included in adjusted 
        gross income, equal to the amount of interest earned 
        in the taxable year on a medical care savings account 
        established under the Medical Care Savings Account Act 
        or the Medical Care Savings Account Act of 2000 on 
        behalf of the taxpayer, other than interest added 
        pursuant to item (D-5) of this paragraph (2);
            (U) For one taxable year beginning on or after 
        January 1, 1994, an amount equal to the total amount of 
        tax imposed and paid under subsections (a) and (b) of 
        Section 201 of this Act on grant amounts received by 
        the taxpayer under the Nursing Home Grant Assistance 
        Act during the taxpayer's taxable years 1992 and 1993;
            (V) Beginning with tax years ending on or after 
        December 31, 1995 and ending with tax years ending on 
        or before December 31, 2004, an amount equal to the 
        amount paid by a taxpayer who is a self-employed 
        taxpayer, a partner of a partnership, or a shareholder 
        in a Subchapter S corporation for health insurance or 
        long-term care insurance for that taxpayer or that 
        taxpayer's spouse or dependents, to the extent that 
        the amount paid for that health insurance or long-term 
        care insurance may be deducted under Section 213 of 
        the Internal Revenue Code, has not been deducted on 
        the federal income tax return of the taxpayer, and 
        does not exceed the taxable income attributable to 
        that taxpayer's income, self-employment income, or 
        Subchapter S corporation income; except that no 
        deduction shall be allowed under this item (V) if the 
        taxpayer is eligible to participate in any health 
        insurance or long-term care insurance plan of an 
        employer of the taxpayer or the taxpayer's spouse. The 
        amount of the health insurance and long-term care 
        insurance subtracted under this item (V) shall be 
        determined by multiplying total health insurance and 
        long-term care insurance premiums paid by the taxpayer 
        times a number that represents the fractional 
        percentage of eligible medical expenses under Section 
        213 of the Internal Revenue Code of 1986 not actually 
        deducted on the taxpayer's federal income tax return;
            (W) For taxable years beginning on or after 
        January 1, 1998, all amounts included in the 
        taxpayer's federal gross income in the taxable year 
        from amounts converted from a regular IRA to a Roth 
        IRA. This paragraph is exempt from the provisions of 
        Section 250;
            (X) For taxable year 1999 and thereafter, an 
        amount equal to the amount of any (i) distributions, 
        to the extent includible in gross income for federal 
        income tax purposes, made to the taxpayer because of 
        his or her status as a victim of persecution for racial 
        or religious reasons by Nazi Germany or any other Axis 
        regime or as an heir of the victim and (ii) items of 
        income, to the extent includible in gross income for 
        federal income tax purposes, attributable to, derived 
        from or in any way related to assets stolen from, 
        hidden from, or otherwise lost to a victim of 
        persecution for racial or religious reasons by Nazi 
        Germany or any other Axis regime immediately prior to, 
        during, and immediately after World War II, including, 
        but not limited to, interest on the proceeds 
        receivable as insurance under policies issued to a 
        victim of persecution for racial or religious reasons 
        by Nazi Germany or any other Axis regime by European 
        insurance companies immediately prior to and during 
        World War II; provided, however, this subtraction from 
        federal adjusted gross income does not apply to assets 
        acquired with such assets or with the proceeds from 
        the sale of such assets; provided, further, this 
        paragraph shall only apply to a taxpayer who was the 
        first recipient of such assets after their recovery 
        and who is a victim of persecution for racial or 
        religious reasons by Nazi Germany or any other Axis 
        regime or as an heir of the victim. The amount of and 
        the eligibility for any public assistance, benefit, or 
        similar entitlement is not affected by the inclusion 
        of items (i) and (ii) of this paragraph in gross income 
        for federal income tax purposes. This paragraph is 
        exempt from the provisions of Section 250;
            (Y) For taxable years beginning on or after 
        January 1, 2002 and ending on or before December 31, 
        2004, moneys contributed in the taxable year to a 
        College Savings Pool account under Section 16.5 of the 
        State Treasurer Act, except that amounts excluded from 
        gross income under Section 529(c)(3)(C)(i) of the 
        Internal Revenue Code shall not be considered moneys 
        contributed under this subparagraph (Y). For taxable 
        years beginning on or after January 1, 2005, a maximum 
        of $10,000 contributed in the taxable year to (i) a 
        College Savings Pool account under Section 16.5 of the 
        State Treasurer Act or (ii) the Illinois Prepaid 
        Tuition Trust Fund, except that amounts excluded from 
        gross income under Section 529(c)(3)(C)(i) of the 
        Internal Revenue Code shall not be considered moneys 
        contributed under this subparagraph (Y). For purposes 
        of this subparagraph, contributions made by an 
        employer on behalf of an employee, or matching 
        contributions made by an employee, shall be treated as 
        made by the employee. This subparagraph (Y) is exempt 
        from the provisions of Section 250;
            (Z) For taxable years 2001 and thereafter, for the 
        taxable year in which the bonus depreciation deduction 
        is taken on the taxpayer's federal income tax return 
        under subsection (k) of Section 168 of the Internal 
        Revenue Code and for each applicable taxable year 
        thereafter, an amount equal to "x", where:
                (1) "y" equals the amount of the depreciation 
            deduction taken for the taxable year on the 
            taxpayer's federal income tax return on property 
            for which the bonus depreciation deduction was 
            taken in any year under subsection (k) of Section 
            168 of the Internal Revenue Code, but not 
            including the bonus depreciation deduction;
                (2) for taxable years ending on or before 
            December 31, 2005, "x" equals "y" multiplied by 30 
            and then divided by 70 (or "y" multiplied by 
            0.429); and
                (3) for taxable years ending after December 
            31, 2005:
                    (i) for property on which a bonus 
                depreciation deduction of 30% of the adjusted 
                basis was taken, "x" equals "y" multiplied by 
                30 and then divided by 70 (or "y" multiplied 
                by 0.429);
                    (ii) for property on which a bonus 
                depreciation deduction of 50% of the adjusted 
                basis was taken, "x" equals "y" multiplied by 
                1.0;
                    (iii) for property on which a bonus 
                depreciation deduction of 100% of the adjusted 
                basis was taken in a taxable year ending on or 
                after December 31, 2021, "x" equals the 
                depreciation deduction that would be allowed 
                on that property if the taxpayer had made the 
                election under Section 168(k)(7) of the 
                Internal Revenue Code to not claim bonus 
                depreciation on that property; and
                    (iv) for property on which a bonus 
                depreciation deduction of a percentage other 
                than 30%, 50% or 100% of the adjusted basis 
                was taken in a taxable year ending on or after 
                December 31, 2021, "x" equals "y" multiplied 
                by 100 times the percentage bonus depreciation 
                on the property (that is, 100(bonus%)) and 
                then divided by 100 times 1 minus the 
                percentage bonus depreciation on the property 
                (that is, 100(1-bonus%)). 
            The aggregate amount deducted under this 
        subparagraph in all taxable years for any one piece of 
        property may not exceed the amount of the bonus 
        depreciation deduction taken on that property on the 
        taxpayer's federal income tax return under subsection 
        (k) of Section 168 of the Internal Revenue Code. This 
        subparagraph (Z) is exempt from the provisions of 
        Section 250;
            (AA) If the taxpayer sells, transfers, abandons, 
        or otherwise disposes of property for which the 
        taxpayer was required in any taxable year to make an 
        addition modification under subparagraph (D-15), then 
        an amount equal to that addition modification. 
            If the taxpayer continues to own property through 
        the last day of the last tax year for which a 
        subtraction is allowed with respect to that property 
        under subparagraph (Z) and for which the taxpayer was 
        required in any taxable year to make an addition 
        modification under subparagraph (D-15), then an amount 
        equal to that addition modification. 
            The taxpayer is allowed to take the deduction 
        under this subparagraph only once with respect to any 
        one piece of property.
            This subparagraph (AA) is exempt from the 
        provisions of Section 250;
            (BB) Any amount included in adjusted gross income, 
        other than salary, received by a driver in a 
        ridesharing arrangement using a motor vehicle;
            (CC) The amount of (i) any interest income (net of 
        the deductions allocable thereto) taken into account 
        for the taxable year with respect to a transaction 
        with a taxpayer that is required to make an addition 
        modification with respect to such transaction under 
        Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
        the amount of that addition modification, and (ii) any 
        income from intangible property (net of the deductions 
        allocable thereto) taken into account for the taxable 
        year with respect to a transaction with a taxpayer 
        that is required to make an addition modification with 
        respect to such transaction under Section 
        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
        203(d)(2)(D-8), but not to exceed the amount of that 
        addition modification. This subparagraph (CC) is 
        exempt from the provisions of Section 250;
            (DD) An amount equal to the interest income taken 
        into account for the taxable year (net of the 
        deductions allocable thereto) with respect to 
        transactions with (i) a foreign person who would be a 
        member of the taxpayer's unitary business group but 
        for the fact that the foreign person's business 
        activity outside the United States is 80% or more of 
        that person's total business activity and (ii) for 
        taxable years ending on or after December 31, 2008, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304, but 
        not to exceed the addition modification required to be 
        made for the same taxable year under Section 
        203(a)(2)(D-17) for interest paid, accrued, or 
        incurred, directly or indirectly, to the same person. 
        This subparagraph (DD) is exempt from the provisions 
        of Section 250; 
            (EE) An amount equal to the income from intangible 
        property taken into account for the taxable year (net 
        of the deductions allocable thereto) with respect to 
        transactions with (i) a foreign person who would be a 
        member of the taxpayer's unitary business group but 
        for the fact that the foreign person's business 
        activity outside the United States is 80% or more of 
        that person's total business activity and (ii) for 
        taxable years ending on or after December 31, 2008, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304, but 
        not to exceed the addition modification required to be 
        made for the same taxable year under Section 
        203(a)(2)(D-18) for intangible expenses and costs 
        paid, accrued, or incurred, directly or indirectly, to 
        the same foreign person. This subparagraph (EE) is 
        exempt from the provisions of Section 250;
            (FF) An amount equal to any amount awarded to the 
        taxpayer during the taxable year by the Court of 
        Claims under subsection (c) of Section 8 of the Court 
        of Claims Act for time unjustly served in a State 
        prison. This subparagraph (FF) is exempt from the 
        provisions of Section 250; 
            (GG) For taxable years ending on or after December 
        31, 2011, in the case of a taxpayer who was required to 
        add back any insurance premiums under Section 
        203(a)(2)(D-19), such taxpayer may elect to subtract 
        that part of a reimbursement received from the 
        insurance company equal to the amount of the expense 
        or loss (including expenses incurred by the insurance 
        company) that would have been taken into account as a 
        deduction for federal income tax purposes if the 
        expense or loss had been uninsured. If a taxpayer 
        makes the election provided for by this subparagraph 
        (GG), the insurer to which the premiums were paid must 
        add back to income the amount subtracted by the 
        taxpayer pursuant to this subparagraph (GG). This 
        subparagraph (GG) is exempt from the provisions of 
        Section 250; 
            (HH) For taxable years beginning on or after 
        January 1, 2018 and prior to January 1, 2028, a maximum 
        of $10,000 contributed in the taxable year to a 
        qualified ABLE account under Section 16.6 of the State 
        Treasurer Act, except that amounts excluded from gross 
        income under Section 529(c)(3)(C)(i) or Section 
        529A(c)(1)(C) of the Internal Revenue Code shall not 
        be considered moneys contributed under this 
        subparagraph (HH). For purposes of this subparagraph 
        (HH), contributions made by an employer on behalf of 
        an employee, or matching contributions made by an 
        employee, shall be treated as made by the employee; 
            (II) For taxable years that begin on or after 
        January 1, 2021 and begin before January 1, 2026, the 
        amount that is included in the taxpayer's federal 
        adjusted gross income pursuant to Section 61 of the 
        Internal Revenue Code as discharge of indebtedness 
        attributable to student loan forgiveness and that is 
        not excluded from the taxpayer's federal adjusted 
        gross income pursuant to paragraph (5) of subsection 
        (f) of Section 108 of the Internal Revenue Code; and 
            (JJ) For taxable years beginning on or after 
        January 1, 2023, for any cannabis establishment 
        operating in this State and licensed under the 
        Cannabis Regulation and Tax Act or any cannabis 
        cultivation center or medical cannabis dispensing 
        organization operating in this State and licensed 
        under the Compassionate Use of Medical Cannabis 
        Program Act, an amount equal to the deductions that 
        were disallowed under Section 280E of the Internal 
        Revenue Code for the taxable year and that would not be 
        added back under this subsection. The provisions of 
        this subparagraph (JJ) are exempt from the provisions 
        of Section 250; and . 
            (KK) (JJ) To the extent includible in gross income 
        for federal income tax purposes, any amount awarded or 
        paid to the taxpayer as a result of a judgment or 
        settlement for fertility fraud as provided in Section 
        15 of the Illinois Fertility Fraud Act, donor 
        fertility fraud as provided in Section 20 of the 
        Illinois Fertility Fraud Act, or similar action in 
        another state. 
 
    (b) Corporations.
        (1) In general. In the case of a corporation, base 
    income means an amount equal to the taxpayer's taxable 
    income for the taxable year as modified by paragraph (2).
        (2) Modifications. The taxable income referred to in 
    paragraph (1) shall be modified by adding thereto the sum 
    of the following amounts:
            (A) An amount equal to all amounts paid or accrued 
        to the taxpayer as interest and all distributions 
        received from regulated investment companies during 
        the taxable year to the extent excluded from gross 
        income in the computation of taxable income;
            (B) An amount equal to the amount of tax imposed by 
        this Act to the extent deducted from gross income in 
        the computation of taxable income for the taxable 
        year;
            (C) In the case of a regulated investment company, 
        an amount equal to the excess of (i) the net long-term 
        capital gain for the taxable year, over (ii) the 
        amount of the capital gain dividends designated as 
        such in accordance with Section 852(b)(3)(C) of the 
        Internal Revenue Code and any amount designated under 
        Section 852(b)(3)(D) of the Internal Revenue Code, 
        attributable to the taxable year (this amendatory Act 
        of 1995 (Public Act 89-89) is declarative of existing 
        law and is not a new enactment);
            (D) The amount of any net operating loss deduction 
        taken in arriving at taxable income, other than a net 
        operating loss carried forward from a taxable year 
        ending prior to December 31, 1986;
            (E) For taxable years in which a net operating 
        loss carryback or carryforward from a taxable year 
        ending prior to December 31, 1986 is an element of 
        taxable income under paragraph (1) of subsection (e) 
        or subparagraph (E) of paragraph (2) of subsection 
        (e), the amount by which addition modifications other 
        than those provided by this subparagraph (E) exceeded 
        subtraction modifications in such earlier taxable 
        year, with the following limitations applied in the 
        order that they are listed:
                (i) the addition modification relating to the 
            net operating loss carried back or forward to the 
            taxable year from any taxable year ending prior to 
            December 31, 1986 shall be reduced by the amount 
            of addition modification under this subparagraph 
            (E) which related to that net operating loss and 
            which was taken into account in calculating the 
            base income of an earlier taxable year, and
                (ii) the addition modification relating to the 
            net operating loss carried back or forward to the 
            taxable year from any taxable year ending prior to 
            December 31, 1986 shall not exceed the amount of 
            such carryback or carryforward;
            For taxable years in which there is a net 
        operating loss carryback or carryforward from more 
        than one other taxable year ending prior to December 
        31, 1986, the addition modification provided in this 
        subparagraph (E) shall be the sum of the amounts 
        computed independently under the preceding provisions 
        of this subparagraph (E) for each such taxable year;
            (E-5) For taxable years ending after December 31, 
        1997, an amount equal to any eligible remediation 
        costs that the corporation deducted in computing 
        adjusted gross income and for which the corporation 
        claims a credit under subsection (l) of Section 201;
            (E-10) For taxable years 2001 and thereafter, an 
        amount equal to the bonus depreciation deduction taken 
        on the taxpayer's federal income tax return for the 
        taxable year under subsection (k) of Section 168 of 
        the Internal Revenue Code;
            (E-11) If the taxpayer sells, transfers, abandons, 
        or otherwise disposes of property for which the 
        taxpayer was required in any taxable year to make an 
        addition modification under subparagraph (E-10), then 
        an amount equal to the aggregate amount of the 
        deductions taken in all taxable years under 
        subparagraph (T) with respect to that property.
            If the taxpayer continues to own property through 
        the last day of the last tax year for which a 
        subtraction is allowed with respect to that property 
        under subparagraph (T) and for which the taxpayer was 
        allowed in any taxable year to make a subtraction 
        modification under subparagraph (T), then an amount 
        equal to that subtraction modification. 
            The taxpayer is required to make the addition 
        modification under this subparagraph only once with 
        respect to any one piece of property;
            (E-12) An amount equal to the amount otherwise 
        allowed as a deduction in computing base income for 
        interest paid, accrued, or incurred, directly or 
        indirectly, (i) for taxable years ending on or after 
        December 31, 2004, to a foreign person who would be a 
        member of the same unitary business group but for the 
        fact the foreign person's business activity outside 
        the United States is 80% or more of the foreign 
        person's total business activity and (ii) for taxable 
        years ending on or after December 31, 2008, to a person 
        who would be a member of the same unitary business 
        group but for the fact that the person is prohibited 
        under Section 1501(a)(27) from being included in the 
        unitary business group because he or she is ordinarily 
        required to apportion business income under different 
        subsections of Section 304. The addition modification 
        required by this subparagraph shall be reduced to the 
        extent that dividends were included in base income of 
        the unitary group for the same taxable year and 
        received by the taxpayer or by a member of the 
        taxpayer's unitary business group (including amounts 
        included in gross income pursuant to Sections 951 
        through 964 of the Internal Revenue Code and amounts 
        included in gross income under Section 78 of the 
        Internal Revenue Code) with respect to the stock of 
        the same person to whom the interest was paid, 
        accrued, or incurred. 
            This paragraph shall not apply to the following: 
                (i) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person who 
            is subject in a foreign country or state, other 
            than a state which requires mandatory unitary 
            reporting, to a tax on or measured by net income 
            with respect to such interest; or
                (ii) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person if 
            the taxpayer can establish, based on a 
            preponderance of the evidence, both of the 
            following:
                    (a) the person, during the same taxable 
                year, paid, accrued, or incurred, the interest 
                to a person that is not a related member, and
                    (b) the transaction giving rise to the 
                interest expense between the taxpayer and the 
                person did not have as a principal purpose the 
                avoidance of Illinois income tax, and is paid 
                pursuant to a contract or agreement that 
                reflects an arm's-length interest rate and 
                terms; or 
                (iii) the taxpayer can establish, based on 
            clear and convincing evidence, that the interest 
            paid, accrued, or incurred relates to a contract 
            or agreement entered into at arm's-length rates 
            and terms and the principal purpose for the 
            payment is not federal or Illinois tax avoidance; 
            or 
                (iv) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person if 
            the taxpayer establishes by clear and convincing 
            evidence that the adjustments are unreasonable; or 
            if the taxpayer and the Director agree in writing 
            to the application or use of an alternative method 
            of apportionment under Section 304(f). 
                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act 
            for any tax year beginning after the effective 
            date of this amendment provided such adjustment is 
            made pursuant to regulation adopted by the 
            Department and such regulations provide methods 
            and standards by which the Department will utilize 
            its authority under Section 404 of this Act; 
            (E-13) An amount equal to the amount of intangible 
        expenses and costs otherwise allowed as a deduction in 
        computing base income, and that were paid, accrued, or 
        incurred, directly or indirectly, (i) for taxable 
        years ending on or after December 31, 2004, to a 
        foreign person who would be a member of the same 
        unitary business group but for the fact that the 
        foreign person's business activity outside the United 
        States is 80% or more of that person's total business 
        activity and (ii) for taxable years ending on or after 
        December 31, 2008, to a person who would be a member of 
        the same unitary business group but for the fact that 
        the person is prohibited under Section 1501(a)(27) 
        from being included in the unitary business group 
        because he or she is ordinarily required to apportion 
        business income under different subsections of Section 
        304. The addition modification required by this 
        subparagraph shall be reduced to the extent that 
        dividends were included in base income of the unitary 
        group for the same taxable year and received by the 
        taxpayer or by a member of the taxpayer's unitary 
        business group (including amounts included in gross 
        income pursuant to Sections 951 through 964 of the 
        Internal Revenue Code and amounts included in gross 
        income under Section 78 of the Internal Revenue Code) 
        with respect to the stock of the same person to whom 
        the intangible expenses and costs were directly or 
        indirectly paid, incurred, or accrued. The preceding 
        sentence shall not apply to the extent that the same 
        dividends caused a reduction to the addition 
        modification required under Section 203(b)(2)(E-12) of 
        this Act. As used in this subparagraph, the term 
        "intangible expenses and costs" includes (1) expenses, 
        losses, and costs for, or related to, the direct or 
        indirect acquisition, use, maintenance or management, 
        ownership, sale, exchange, or any other disposition of 
        intangible property; (2) losses incurred, directly or 
        indirectly, from factoring transactions or discounting 
        transactions; (3) royalty, patent, technical, and 
        copyright fees; (4) licensing fees; and (5) other 
        similar expenses and costs. For purposes of this 
        subparagraph, "intangible property" includes patents, 
        patent applications, trade names, trademarks, service 
        marks, copyrights, mask works, trade secrets, and 
        similar types of intangible assets.
            This paragraph shall not apply to the following:
                (i) any item of intangible expenses or costs 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a person who 
            is subject in a foreign country or state, other 
            than a state which requires mandatory unitary 
            reporting, to a tax on or measured by net income 
            with respect to such item; or
                (ii) any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, if the taxpayer can establish, based 
            on a preponderance of the evidence, both of the 
            following:
                    (a) the person during the same taxable 
                year paid, accrued, or incurred, the 
                intangible expense or cost to a person that is 
                not a related member, and
                    (b) the transaction giving rise to the 
                intangible expense or cost between the 
                taxpayer and the person did not have as a 
                principal purpose the avoidance of Illinois 
                income tax, and is paid pursuant to a contract 
                or agreement that reflects arm's-length terms; 
                or
                (iii) any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a person if 
            the taxpayer establishes by clear and convincing 
            evidence, that the adjustments are unreasonable; 
            or if the taxpayer and the Director agree in 
            writing to the application or use of an 
            alternative method of apportionment under Section 
            304(f); 
                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act 
            for any tax year beginning after the effective 
            date of this amendment provided such adjustment is 
            made pursuant to regulation adopted by the 
            Department and such regulations provide methods 
            and standards by which the Department will utilize 
            its authority under Section 404 of this Act; 
            (E-14) For taxable years ending on or after 
        December 31, 2008, an amount equal to the amount of 
        insurance premium expenses and costs otherwise allowed 
        as a deduction in computing base income, and that were 
        paid, accrued, or incurred, directly or indirectly, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304. The 
        addition modification required by this subparagraph 
        shall be reduced to the extent that dividends were 
        included in base income of the unitary group for the 
        same taxable year and received by the taxpayer or by a 
        member of the taxpayer's unitary business group 
        (including amounts included in gross income under 
        Sections 951 through 964 of the Internal Revenue Code 
        and amounts included in gross income under Section 78 
        of the Internal Revenue Code) with respect to the 
        stock of the same person to whom the premiums and costs 
        were directly or indirectly paid, incurred, or 
        accrued. The preceding sentence does not apply to the 
        extent that the same dividends caused a reduction to 
        the addition modification required under Section 
        203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this 
        Act; 
            (E-15) For taxable years beginning after December 
        31, 2008, any deduction for dividends paid by a 
        captive real estate investment trust that is allowed 
        to a real estate investment trust under Section 
        857(b)(2)(B) of the Internal Revenue Code for 
        dividends paid;
            (E-16) An amount equal to the credit allowable to 
        the taxpayer under Section 218(a) of this Act, 
        determined without regard to Section 218(c) of this 
        Act;
            (E-17) For taxable years ending on or after 
        December 31, 2017, an amount equal to the deduction 
        allowed under Section 199 of the Internal Revenue Code 
        for the taxable year; 
            (E-18) for taxable years beginning after December 
        31, 2018, an amount equal to the deduction allowed 
        under Section 250(a)(1)(A) of the Internal Revenue 
        Code for the taxable year; 
            (E-19) for taxable years ending on or after June 
        30, 2021, an amount equal to the deduction allowed 
        under Section 250(a)(1)(B)(i) of the Internal Revenue 
        Code for the taxable year; 
            (E-20) for taxable years ending on or after June 
        30, 2021, an amount equal to the deduction allowed 
        under Sections 243(e) and 245A(a) of the Internal 
        Revenue Code for the taxable year; . 
            (E-21) the amount that is claimed as a federal 
        deduction when computing the taxpayer's federal 
        taxable income for the taxable year and that is 
        attributable to an endowment gift for which the 
        taxpayer receives a credit under the Illinois Gives 
        Tax Credit Act; 
    and by deducting from the total so obtained the sum of the 
    following amounts:
            (F) An amount equal to the amount of any tax 
        imposed by this Act which was refunded to the taxpayer 
        and included in such total for the taxable year;
            (G) An amount equal to any amount included in such 
        total under Section 78 of the Internal Revenue Code;
            (H) In the case of a regulated investment company, 
        an amount equal to the amount of exempt interest 
        dividends as defined in subsection (b)(5) of Section 
        852 of the Internal Revenue Code, paid to shareholders 
        for the taxable year;
            (I) With the exception of any amounts subtracted 
        under subparagraph (J), an amount equal to the sum of 
        all amounts disallowed as deductions by (i) Sections 
        171(a)(2) and 265(a)(2) and amounts disallowed as 
        interest expense by Section 291(a)(3) of the Internal 
        Revenue Code, and all amounts of expenses allocable to 
        interest and disallowed as deductions by Section 
        265(a)(1) of the Internal Revenue Code; and (ii) for 
        taxable years ending on or after August 13, 1999, 
        Sections 171(a)(2), 265, 280C, 291(a)(3), and 
        832(b)(5)(B)(i) of the Internal Revenue Code, plus, 
        for tax years ending on or after December 31, 2011, 
        amounts disallowed as deductions by Section 45G(e)(3) 
        of the Internal Revenue Code and, for taxable years 
        ending on or after December 31, 2008, any amount 
        included in gross income under Section 87 of the 
        Internal Revenue Code and the policyholders' share of 
        tax-exempt interest of a life insurance company under 
        Section 807(a)(2)(B) of the Internal Revenue Code (in 
        the case of a life insurance company with gross income 
        from a decrease in reserves for the tax year) or 
        Section 807(b)(1)(B) of the Internal Revenue Code (in 
        the case of a life insurance company allowed a 
        deduction for an increase in reserves for the tax 
        year); the provisions of this subparagraph are exempt 
        from the provisions of Section 250;
            (J) An amount equal to all amounts included in 
        such total which are exempt from taxation by this 
        State either by reason of its statutes or Constitution 
        or by reason of the Constitution, treaties or statutes 
        of the United States; provided that, in the case of any 
        statute of this State that exempts income derived from 
        bonds or other obligations from the tax imposed under 
        this Act, the amount exempted shall be the interest 
        net of bond premium amortization;
            (K) An amount equal to those dividends included in 
        such total which were paid by a corporation which 
        conducts business operations in a River Edge 
        Redevelopment Zone or zones created under the River 
        Edge Redevelopment Zone Act and conducts substantially 
        all of its operations in a River Edge Redevelopment 
        Zone or zones. This subparagraph (K) is exempt from 
        the provisions of Section 250;
            (L) An amount equal to those dividends included in 
        such total that were paid by a corporation that 
        conducts business operations in a federally designated 
        Foreign Trade Zone or Sub-Zone and that is designated 
        a High Impact Business located in Illinois; provided 
        that dividends eligible for the deduction provided in 
        subparagraph (K) of paragraph 2 of this subsection 
        shall not be eligible for the deduction provided under 
        this subparagraph (L);
            (M) For any taxpayer that is a financial 
        organization within the meaning of Section 304(c) of 
        this Act, an amount included in such total as interest 
        income from a loan or loans made by such taxpayer to a 
        borrower, to the extent that such a loan is secured by 
        property which is eligible for the River Edge 
        Redevelopment Zone Investment Credit. To determine the 
        portion of a loan or loans that is secured by property 
        eligible for a Section 201(f) investment credit to the 
        borrower, the entire principal amount of the loan or 
        loans between the taxpayer and the borrower should be 
        divided into the basis of the Section 201(f) 
        investment credit property which secures the loan or 
        loans, using for this purpose the original basis of 
        such property on the date that it was placed in service 
        in the River Edge Redevelopment Zone. The subtraction 
        modification available to the taxpayer in any year 
        under this subsection shall be that portion of the 
        total interest paid by the borrower with respect to 
        such loan attributable to the eligible property as 
        calculated under the previous sentence. This 
        subparagraph (M) is exempt from the provisions of 
        Section 250;
            (M-1) For any taxpayer that is a financial 
        organization within the meaning of Section 304(c) of 
        this Act, an amount included in such total as interest 
        income from a loan or loans made by such taxpayer to a 
        borrower, to the extent that such a loan is secured by 
        property which is eligible for the High Impact 
        Business Investment Credit. To determine the portion 
        of a loan or loans that is secured by property eligible 
        for a Section 201(h) investment credit to the 
        borrower, the entire principal amount of the loan or 
        loans between the taxpayer and the borrower should be 
        divided into the basis of the Section 201(h) 
        investment credit property which secures the loan or 
        loans, using for this purpose the original basis of 
        such property on the date that it was placed in service 
        in a federally designated Foreign Trade Zone or 
        Sub-Zone located in Illinois. No taxpayer that is 
        eligible for the deduction provided in subparagraph 
        (M) of paragraph (2) of this subsection shall be 
        eligible for the deduction provided under this 
        subparagraph (M-1). The subtraction modification 
        available to taxpayers in any year under this 
        subsection shall be that portion of the total interest 
        paid by the borrower with respect to such loan 
        attributable to the eligible property as calculated 
        under the previous sentence;
            (N) Two times any contribution made during the 
        taxable year to a designated zone organization to the 
        extent that the contribution (i) qualifies as a 
        charitable contribution under subsection (c) of 
        Section 170 of the Internal Revenue Code and (ii) 
        must, by its terms, be used for a project approved by 
        the Department of Commerce and Economic Opportunity 
        under Section 11 of the Illinois Enterprise Zone Act 
        or under Section 10-10 of the River Edge Redevelopment 
        Zone Act. This subparagraph (N) is exempt from the 
        provisions of Section 250;
            (O) An amount equal to: (i) 85% for taxable years 
        ending on or before December 31, 1992, or, a 
        percentage equal to the percentage allowable under 
        Section 243(a)(1) of the Internal Revenue Code of 1986 
        for taxable years ending after December 31, 1992, of 
        the amount by which dividends included in taxable 
        income and received from a corporation that is not 
        created or organized under the laws of the United 
        States or any state or political subdivision thereof, 
        including, for taxable years ending on or after 
        December 31, 1988, dividends received or deemed 
        received or paid or deemed paid under Sections 951 
        through 965 of the Internal Revenue Code, exceed the 
        amount of the modification provided under subparagraph 
        (G) of paragraph (2) of this subsection (b) which is 
        related to such dividends, and including, for taxable 
        years ending on or after December 31, 2008, dividends 
        received from a captive real estate investment trust; 
        plus (ii) 100% of the amount by which dividends, 
        included in taxable income and received, including, 
        for taxable years ending on or after December 31, 
        1988, dividends received or deemed received or paid or 
        deemed paid under Sections 951 through 964 of the 
        Internal Revenue Code and including, for taxable years 
        ending on or after December 31, 2008, dividends 
        received from a captive real estate investment trust, 
        from any such corporation specified in clause (i) that 
        would but for the provisions of Section 1504(b)(3) of 
        the Internal Revenue Code be treated as a member of the 
        affiliated group which includes the dividend 
        recipient, exceed the amount of the modification 
        provided under subparagraph (G) of paragraph (2) of 
        this subsection (b) which is related to such 
        dividends. For taxable years ending on or after June 
        30, 2021, (i) for purposes of this subparagraph, the 
        term "dividend" does not include any amount treated as 
        a dividend under Section 1248 of the Internal Revenue 
        Code, and (ii) this subparagraph shall not apply to 
        dividends for which a deduction is allowed under 
        Section 245(a) of the Internal Revenue Code. This 
        subparagraph (O) is exempt from the provisions of 
        Section 250 of this Act;
            (P) An amount equal to any contribution made to a 
        job training project established pursuant to the Tax 
        Increment Allocation Redevelopment Act;
            (Q) An amount equal to the amount of the deduction 
        used to compute the federal income tax credit for 
        restoration of substantial amounts held under claim of 
        right for the taxable year pursuant to Section 1341 of 
        the Internal Revenue Code;
            (R) On and after July 20, 1999, in the case of an 
        attorney-in-fact with respect to whom an interinsurer 
        or a reciprocal insurer has made the election under 
        Section 835 of the Internal Revenue Code, 26 U.S.C. 
        835, an amount equal to the excess, if any, of the 
        amounts paid or incurred by that interinsurer or 
        reciprocal insurer in the taxable year to the 
        attorney-in-fact over the deduction allowed to that 
        interinsurer or reciprocal insurer with respect to the 
        attorney-in-fact under Section 835(b) of the Internal 
        Revenue Code for the taxable year; the provisions of 
        this subparagraph are exempt from the provisions of 
        Section 250;
            (S) For taxable years ending on or after December 
        31, 1997, in the case of a Subchapter S corporation, an 
        amount equal to all amounts of income allocable to a 
        shareholder subject to the Personal Property Tax 
        Replacement Income Tax imposed by subsections (c) and 
        (d) of Section 201 of this Act, including amounts 
        allocable to organizations exempt from federal income 
        tax by reason of Section 501(a) of the Internal 
        Revenue Code. This subparagraph (S) is exempt from the 
        provisions of Section 250;
            (T) For taxable years 2001 and thereafter, for the 
        taxable year in which the bonus depreciation deduction 
        is taken on the taxpayer's federal income tax return 
        under subsection (k) of Section 168 of the Internal 
        Revenue Code and for each applicable taxable year 
        thereafter, an amount equal to "x", where:
                (1) "y" equals the amount of the depreciation 
            deduction taken for the taxable year on the 
            taxpayer's federal income tax return on property 
            for which the bonus depreciation deduction was 
            taken in any year under subsection (k) of Section 
            168 of the Internal Revenue Code, but not 
            including the bonus depreciation deduction;
                (2) for taxable years ending on or before 
            December 31, 2005, "x" equals "y" multiplied by 30 
            and then divided by 70 (or "y" multiplied by 
            0.429); and
                (3) for taxable years ending after December 
            31, 2005:
                    (i) for property on which a bonus 
                depreciation deduction of 30% of the adjusted 
                basis was taken, "x" equals "y" multiplied by 
                30 and then divided by 70 (or "y" multiplied 
                by 0.429);
                    (ii) for property on which a bonus 
                depreciation deduction of 50% of the adjusted 
                basis was taken, "x" equals "y" multiplied by 
                1.0;
                    (iii) for property on which a bonus 
                depreciation deduction of 100% of the adjusted 
                basis was taken in a taxable year ending on or 
                after December 31, 2021, "x" equals the 
                depreciation deduction that would be allowed 
                on that property if the taxpayer had made the 
                election under Section 168(k)(7) of the 
                Internal Revenue Code to not claim bonus 
                depreciation on that property; and
                    (iv) for property on which a bonus 
                depreciation deduction of a percentage other 
                than 30%, 50% or 100% of the adjusted basis 
                was taken in a taxable year ending on or after 
                December 31, 2021, "x" equals "y" multiplied 
                by 100 times the percentage bonus depreciation 
                on the property (that is, 100(bonus%)) and 
                then divided by 100 times 1 minus the 
                percentage bonus depreciation on the property 
                (that is, 100(1-bonus%)). 
            The aggregate amount deducted under this 
        subparagraph in all taxable years for any one piece of 
        property may not exceed the amount of the bonus 
        depreciation deduction taken on that property on the 
        taxpayer's federal income tax return under subsection 
        (k) of Section 168 of the Internal Revenue Code. This 
        subparagraph (T) is exempt from the provisions of 
        Section 250;
            (U) If the taxpayer sells, transfers, abandons, or 
        otherwise disposes of property for which the taxpayer 
        was required in any taxable year to make an addition 
        modification under subparagraph (E-10), then an amount 
        equal to that addition modification.
            If the taxpayer continues to own property through 
        the last day of the last tax year for which a 
        subtraction is allowed with respect to that property 
        under subparagraph (T) and for which the taxpayer was 
        required in any taxable year to make an addition 
        modification under subparagraph (E-10), then an amount 
        equal to that addition modification. 
            The taxpayer is allowed to take the deduction 
        under this subparagraph only once with respect to any 
        one piece of property.
            This subparagraph (U) is exempt from the 
        provisions of Section 250;
            (V) The amount of: (i) any interest income (net of 
        the deductions allocable thereto) taken into account 
        for the taxable year with respect to a transaction 
        with a taxpayer that is required to make an addition 
        modification with respect to such transaction under 
        Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
        the amount of such addition modification, (ii) any 
        income from intangible property (net of the deductions 
        allocable thereto) taken into account for the taxable 
        year with respect to a transaction with a taxpayer 
        that is required to make an addition modification with 
        respect to such transaction under Section 
        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
        203(d)(2)(D-8), but not to exceed the amount of such 
        addition modification, and (iii) any insurance premium 
        income (net of deductions allocable thereto) taken 
        into account for the taxable year with respect to a 
        transaction with a taxpayer that is required to make 
        an addition modification with respect to such 
        transaction under Section 203(a)(2)(D-19), Section 
        203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section 
        203(d)(2)(D-9), but not to exceed the amount of that 
        addition modification. This subparagraph (V) is exempt 
        from the provisions of Section 250; 
            (W) An amount equal to the interest income taken 
        into account for the taxable year (net of the 
        deductions allocable thereto) with respect to 
        transactions with (i) a foreign person who would be a 
        member of the taxpayer's unitary business group but 
        for the fact that the foreign person's business 
        activity outside the United States is 80% or more of 
        that person's total business activity and (ii) for 
        taxable years ending on or after December 31, 2008, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304, but 
        not to exceed the addition modification required to be 
        made for the same taxable year under Section 
        203(b)(2)(E-12) for interest paid, accrued, or 
        incurred, directly or indirectly, to the same person. 
        This subparagraph (W) is exempt from the provisions of 
        Section 250; 
            (X) An amount equal to the income from intangible 
        property taken into account for the taxable year (net 
        of the deductions allocable thereto) with respect to 
        transactions with (i) a foreign person who would be a 
        member of the taxpayer's unitary business group but 
        for the fact that the foreign person's business 
        activity outside the United States is 80% or more of 
        that person's total business activity and (ii) for 
        taxable years ending on or after December 31, 2008, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304, but 
        not to exceed the addition modification required to be 
        made for the same taxable year under Section 
        203(b)(2)(E-13) for intangible expenses and costs 
        paid, accrued, or incurred, directly or indirectly, to 
        the same foreign person. This subparagraph (X) is 
        exempt from the provisions of Section 250; 
            (Y) For taxable years ending on or after December 
        31, 2011, in the case of a taxpayer who was required to 
        add back any insurance premiums under Section 
        203(b)(2)(E-14), such taxpayer may elect to subtract 
        that part of a reimbursement received from the 
        insurance company equal to the amount of the expense 
        or loss (including expenses incurred by the insurance 
        company) that would have been taken into account as a 
        deduction for federal income tax purposes if the 
        expense or loss had been uninsured. If a taxpayer 
        makes the election provided for by this subparagraph 
        (Y), the insurer to which the premiums were paid must 
        add back to income the amount subtracted by the 
        taxpayer pursuant to this subparagraph (Y). This 
        subparagraph (Y) is exempt from the provisions of 
        Section 250; 
            (Z) The difference between the nondeductible 
        controlled foreign corporation dividends under Section 
        965(e)(3) of the Internal Revenue Code over the 
        taxable income of the taxpayer, computed without 
        regard to Section 965(e)(2)(A) of the Internal Revenue 
        Code, and without regard to any net operating loss 
        deduction. This subparagraph (Z) is exempt from the 
        provisions of Section 250; and 
            (AA) For taxable years beginning on or after 
        January 1, 2023, for any cannabis establishment 
        operating in this State and licensed under the 
        Cannabis Regulation and Tax Act or any cannabis 
        cultivation center or medical cannabis dispensing 
        organization operating in this State and licensed 
        under the Compassionate Use of Medical Cannabis 
        Program Act, an amount equal to the deductions that 
        were disallowed under Section 280E of the Internal 
        Revenue Code for the taxable year and that would not be 
        added back under this subsection. The provisions of 
        this subparagraph (AA) are exempt from the provisions 
        of Section 250. 
        (3) Special rule. For purposes of paragraph (2)(A), 
    "gross income" in the case of a life insurance company, 
    for tax years ending on and after December 31, 1994, and 
    prior to December 31, 2011, shall mean the gross 
    investment income for the taxable year and, for tax years 
    ending on or after December 31, 2011, shall mean all 
    amounts included in life insurance gross income under 
    Section 803(a)(3) of the Internal Revenue Code.
 
    (c) Trusts and estates.
        (1) In general. In the case of a trust or estate, base 
    income means an amount equal to the taxpayer's taxable 
    income for the taxable year as modified by paragraph (2).
        (2) Modifications. Subject to the provisions of 
    paragraph (3), the taxable income referred to in paragraph 
    (1) shall be modified by adding thereto the sum of the 
    following amounts:
            (A) An amount equal to all amounts paid or accrued 
        to the taxpayer as interest or dividends during the 
        taxable year to the extent excluded from gross income 
        in the computation of taxable income;
            (B) In the case of (i) an estate, $600; (ii) a 
        trust which, under its governing instrument, is 
        required to distribute all of its income currently, 
        $300; and (iii) any other trust, $100, but in each such 
        case, only to the extent such amount was deducted in 
        the computation of taxable income;
            (C) An amount equal to the amount of tax imposed by 
        this Act to the extent deducted from gross income in 
        the computation of taxable income for the taxable 
        year;
            (D) The amount of any net operating loss deduction 
        taken in arriving at taxable income, other than a net 
        operating loss carried forward from a taxable year 
        ending prior to December 31, 1986;
            (E) For taxable years in which a net operating 
        loss carryback or carryforward from a taxable year 
        ending prior to December 31, 1986 is an element of 
        taxable income under paragraph (1) of subsection (e) 
        or subparagraph (E) of paragraph (2) of subsection 
        (e), the amount by which addition modifications other 
        than those provided by this subparagraph (E) exceeded 
        subtraction modifications in such taxable year, with 
        the following limitations applied in the order that 
        they are listed:
                (i) the addition modification relating to the 
            net operating loss carried back or forward to the 
            taxable year from any taxable year ending prior to 
            December 31, 1986 shall be reduced by the amount 
            of addition modification under this subparagraph 
            (E) which related to that net operating loss and 
            which was taken into account in calculating the 
            base income of an earlier taxable year, and
                (ii) the addition modification relating to the 
            net operating loss carried back or forward to the 
            taxable year from any taxable year ending prior to 
            December 31, 1986 shall not exceed the amount of 
            such carryback or carryforward;
            For taxable years in which there is a net 
        operating loss carryback or carryforward from more 
        than one other taxable year ending prior to December 
        31, 1986, the addition modification provided in this 
        subparagraph (E) shall be the sum of the amounts 
        computed independently under the preceding provisions 
        of this subparagraph (E) for each such taxable year;
            (F) For taxable years ending on or after January 
        1, 1989, an amount equal to the tax deducted pursuant 
        to Section 164 of the Internal Revenue Code if the 
        trust or estate is claiming the same tax for purposes 
        of the Illinois foreign tax credit under Section 601 
        of this Act;
            (G) An amount equal to the amount of the capital 
        gain deduction allowable under the Internal Revenue 
        Code, to the extent deducted from gross income in the 
        computation of taxable income;
            (G-5) For taxable years ending after December 31, 
        1997, an amount equal to any eligible remediation 
        costs that the trust or estate deducted in computing 
        adjusted gross income and for which the trust or 
        estate claims a credit under subsection (l) of Section 
        201;
            (G-10) For taxable years 2001 and thereafter, an 
        amount equal to the bonus depreciation deduction taken 
        on the taxpayer's federal income tax return for the 
        taxable year under subsection (k) of Section 168 of 
        the Internal Revenue Code; and
            (G-11) If the taxpayer sells, transfers, abandons, 
        or otherwise disposes of property for which the 
        taxpayer was required in any taxable year to make an 
        addition modification under subparagraph (G-10), then 
        an amount equal to the aggregate amount of the 
        deductions taken in all taxable years under 
        subparagraph (R) with respect to that property.
            If the taxpayer continues to own property through 
        the last day of the last tax year for which a 
        subtraction is allowed with respect to that property 
        under subparagraph (R) and for which the taxpayer was 
        allowed in any taxable year to make a subtraction 
        modification under subparagraph (R), then an amount 
        equal to that subtraction modification. 
            The taxpayer is required to make the addition 
        modification under this subparagraph only once with 
        respect to any one piece of property;
            (G-12) An amount equal to the amount otherwise 
        allowed as a deduction in computing base income for 
        interest paid, accrued, or incurred, directly or 
        indirectly, (i) for taxable years ending on or after 
        December 31, 2004, to a foreign person who would be a 
        member of the same unitary business group but for the 
        fact that the foreign person's business activity 
        outside the United States is 80% or more of the foreign 
        person's total business activity and (ii) for taxable 
        years ending on or after December 31, 2008, to a person 
        who would be a member of the same unitary business 
        group but for the fact that the person is prohibited 
        under Section 1501(a)(27) from being included in the 
        unitary business group because he or she is ordinarily 
        required to apportion business income under different 
        subsections of Section 304. The addition modification 
        required by this subparagraph shall be reduced to the 
        extent that dividends were included in base income of 
        the unitary group for the same taxable year and 
        received by the taxpayer or by a member of the 
        taxpayer's unitary business group (including amounts 
        included in gross income pursuant to Sections 951 
        through 964 of the Internal Revenue Code and amounts 
        included in gross income under Section 78 of the 
        Internal Revenue Code) with respect to the stock of 
        the same person to whom the interest was paid, 
        accrued, or incurred. 
            This paragraph shall not apply to the following: 
                (i) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person who 
            is subject in a foreign country or state, other 
            than a state which requires mandatory unitary 
            reporting, to a tax on or measured by net income 
            with respect to such interest; or
                (ii) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person if 
            the taxpayer can establish, based on a 
            preponderance of the evidence, both of the 
            following:
                    (a) the person, during the same taxable 
                year, paid, accrued, or incurred, the interest 
                to a person that is not a related member, and
                    (b) the transaction giving rise to the 
                interest expense between the taxpayer and the 
                person did not have as a principal purpose the 
                avoidance of Illinois income tax, and is paid 
                pursuant to a contract or agreement that 
                reflects an arm's-length interest rate and 
                terms; or 
                (iii) the taxpayer can establish, based on 
            clear and convincing evidence, that the interest 
            paid, accrued, or incurred relates to a contract 
            or agreement entered into at arm's-length rates 
            and terms and the principal purpose for the 
            payment is not federal or Illinois tax avoidance; 
            or 
                (iv) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person if 
            the taxpayer establishes by clear and convincing 
            evidence that the adjustments are unreasonable; or 
            if the taxpayer and the Director agree in writing 
            to the application or use of an alternative method 
            of apportionment under Section 304(f). 
                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act 
            for any tax year beginning after the effective 
            date of this amendment provided such adjustment is 
            made pursuant to regulation adopted by the 
            Department and such regulations provide methods 
            and standards by which the Department will utilize 
            its authority under Section 404 of this Act; 
            (G-13) An amount equal to the amount of intangible 
        expenses and costs otherwise allowed as a deduction in 
        computing base income, and that were paid, accrued, or 
        incurred, directly or indirectly, (i) for taxable 
        years ending on or after December 31, 2004, to a 
        foreign person who would be a member of the same 
        unitary business group but for the fact that the 
        foreign person's business activity outside the United 
        States is 80% or more of that person's total business 
        activity and (ii) for taxable years ending on or after 
        December 31, 2008, to a person who would be a member of 
        the same unitary business group but for the fact that 
        the person is prohibited under Section 1501(a)(27) 
        from being included in the unitary business group 
        because he or she is ordinarily required to apportion 
        business income under different subsections of Section 
        304. The addition modification required by this 
        subparagraph shall be reduced to the extent that 
        dividends were included in base income of the unitary 
        group for the same taxable year and received by the 
        taxpayer or by a member of the taxpayer's unitary 
        business group (including amounts included in gross 
        income pursuant to Sections 951 through 964 of the 
        Internal Revenue Code and amounts included in gross 
        income under Section 78 of the Internal Revenue Code) 
        with respect to the stock of the same person to whom 
        the intangible expenses and costs were directly or 
        indirectly paid, incurred, or accrued. The preceding 
        sentence shall not apply to the extent that the same 
        dividends caused a reduction to the addition 
        modification required under Section 203(c)(2)(G-12) of 
        this Act. As used in this subparagraph, the term 
        "intangible expenses and costs" includes: (1) 
        expenses, losses, and costs for or related to the 
        direct or indirect acquisition, use, maintenance or 
        management, ownership, sale, exchange, or any other 
        disposition of intangible property; (2) losses 
        incurred, directly or indirectly, from factoring 
        transactions or discounting transactions; (3) royalty, 
        patent, technical, and copyright fees; (4) licensing 
        fees; and (5) other similar expenses and costs. For 
        purposes of this subparagraph, "intangible property" 
        includes patents, patent applications, trade names, 
        trademarks, service marks, copyrights, mask works, 
        trade secrets, and similar types of intangible assets.
            This paragraph shall not apply to the following:
                (i) any item of intangible expenses or costs 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a person who 
            is subject in a foreign country or state, other 
            than a state which requires mandatory unitary 
            reporting, to a tax on or measured by net income 
            with respect to such item; or
                (ii) any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, if the taxpayer can establish, based 
            on a preponderance of the evidence, both of the 
            following:
                    (a) the person during the same taxable 
                year paid, accrued, or incurred, the 
                intangible expense or cost to a person that is 
                not a related member, and
                    (b) the transaction giving rise to the 
                intangible expense or cost between the 
                taxpayer and the person did not have as a 
                principal purpose the avoidance of Illinois 
                income tax, and is paid pursuant to a contract 
                or agreement that reflects arm's-length terms; 
                or
                (iii) any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a person if 
            the taxpayer establishes by clear and convincing 
            evidence, that the adjustments are unreasonable; 
            or if the taxpayer and the Director agree in 
            writing to the application or use of an 
            alternative method of apportionment under Section 
            304(f); 
                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act 
            for any tax year beginning after the effective 
            date of this amendment provided such adjustment is 
            made pursuant to regulation adopted by the 
            Department and such regulations provide methods 
            and standards by which the Department will utilize 
            its authority under Section 404 of this Act; 
            (G-14) For taxable years ending on or after 
        December 31, 2008, an amount equal to the amount of 
        insurance premium expenses and costs otherwise allowed 
        as a deduction in computing base income, and that were 
        paid, accrued, or incurred, directly or indirectly, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304. The 
        addition modification required by this subparagraph 
        shall be reduced to the extent that dividends were 
        included in base income of the unitary group for the 
        same taxable year and received by the taxpayer or by a 
        member of the taxpayer's unitary business group 
        (including amounts included in gross income under 
        Sections 951 through 964 of the Internal Revenue Code 
        and amounts included in gross income under Section 78 
        of the Internal Revenue Code) with respect to the 
        stock of the same person to whom the premiums and costs 
        were directly or indirectly paid, incurred, or 
        accrued. The preceding sentence does not apply to the 
        extent that the same dividends caused a reduction to 
        the addition modification required under Section 
        203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this 
        Act;
            (G-15) An amount equal to the credit allowable to 
        the taxpayer under Section 218(a) of this Act, 
        determined without regard to Section 218(c) of this 
        Act;
            (G-16) For taxable years ending on or after 
        December 31, 2017, an amount equal to the deduction 
        allowed under Section 199 of the Internal Revenue Code 
        for the taxable year; 
            (G-17) the amount that is claimed as a federal 
        deduction when computing the taxpayer's federal 
        taxable income for the taxable year and that is 
        attributable to an endowment gift for which the 
        taxpayer receives a credit under the Illinois Gives 
        Tax Credit Act; 
    and by deducting from the total so obtained the sum of the 
    following amounts:
            (H) An amount equal to all amounts included in 
        such total pursuant to the provisions of Sections 
        402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408 
        of the Internal Revenue Code or included in such total 
        as distributions under the provisions of any 
        retirement or disability plan for employees of any 
        governmental agency or unit, or retirement payments to 
        retired partners, which payments are excluded in 
        computing net earnings from self employment by Section 
        1402 of the Internal Revenue Code and regulations 
        adopted pursuant thereto;
            (I) The valuation limitation amount;
            (J) An amount equal to the amount of any tax 
        imposed by this Act which was refunded to the taxpayer 
        and included in such total for the taxable year;
            (K) An amount equal to all amounts included in 
        taxable income as modified by subparagraphs (A), (B), 
        (C), (D), (E), (F) and (G) which are exempt from 
        taxation by this State either by reason of its 
        statutes or Constitution or by reason of the 
        Constitution, treaties or statutes of the United 
        States; provided that, in the case of any statute of 
        this State that exempts income derived from bonds or 
        other obligations from the tax imposed under this Act, 
        the amount exempted shall be the interest net of bond 
        premium amortization;
            (L) With the exception of any amounts subtracted 
        under subparagraph (K), an amount equal to the sum of 
        all amounts disallowed as deductions by (i) Sections 
        171(a)(2) and 265(a)(2) of the Internal Revenue Code, 
        and all amounts of expenses allocable to interest and 
        disallowed as deductions by Section 265(a)(1) of the 
        Internal Revenue Code; and (ii) for taxable years 
        ending on or after August 13, 1999, Sections 
        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the 
        Internal Revenue Code, plus, (iii) for taxable years 
        ending on or after December 31, 2011, Section 
        45G(e)(3) of the Internal Revenue Code and, for 
        taxable years ending on or after December 31, 2008, 
        any amount included in gross income under Section 87 
        of the Internal Revenue Code; the provisions of this 
        subparagraph are exempt from the provisions of Section 
        250;
            (M) An amount equal to those dividends included in 
        such total which were paid by a corporation which 
        conducts business operations in a River Edge 
        Redevelopment Zone or zones created under the River 
        Edge Redevelopment Zone Act and conducts substantially 
        all of its operations in a River Edge Redevelopment 
        Zone or zones. This subparagraph (M) is exempt from 
        the provisions of Section 250;
            (N) An amount equal to any contribution made to a 
        job training project established pursuant to the Tax 
        Increment Allocation Redevelopment Act;
            (O) An amount equal to those dividends included in 
        such total that were paid by a corporation that 
        conducts business operations in a federally designated 
        Foreign Trade Zone or Sub-Zone and that is designated 
        a High Impact Business located in Illinois; provided 
        that dividends eligible for the deduction provided in 
        subparagraph (M) of paragraph (2) of this subsection 
        shall not be eligible for the deduction provided under 
        this subparagraph (O);
            (P) An amount equal to the amount of the deduction 
        used to compute the federal income tax credit for 
        restoration of substantial amounts held under claim of 
        right for the taxable year pursuant to Section 1341 of 
        the Internal Revenue Code;
            (Q) For taxable year 1999 and thereafter, an 
        amount equal to the amount of any (i) distributions, 
        to the extent includible in gross income for federal 
        income tax purposes, made to the taxpayer because of 
        his or her status as a victim of persecution for racial 
        or religious reasons by Nazi Germany or any other Axis 
        regime or as an heir of the victim and (ii) items of 
        income, to the extent includible in gross income for 
        federal income tax purposes, attributable to, derived 
        from or in any way related to assets stolen from, 
        hidden from, or otherwise lost to a victim of 
        persecution for racial or religious reasons by Nazi 
        Germany or any other Axis regime immediately prior to, 
        during, and immediately after World War II, including, 
        but not limited to, interest on the proceeds 
        receivable as insurance under policies issued to a 
        victim of persecution for racial or religious reasons 
        by Nazi Germany or any other Axis regime by European 
        insurance companies immediately prior to and during 
        World War II; provided, however, this subtraction from 
        federal adjusted gross income does not apply to assets 
        acquired with such assets or with the proceeds from 
        the sale of such assets; provided, further, this 
        paragraph shall only apply to a taxpayer who was the 
        first recipient of such assets after their recovery 
        and who is a victim of persecution for racial or 
        religious reasons by Nazi Germany or any other Axis 
        regime or as an heir of the victim. The amount of and 
        the eligibility for any public assistance, benefit, or 
        similar entitlement is not affected by the inclusion 
        of items (i) and (ii) of this paragraph in gross income 
        for federal income tax purposes. This paragraph is 
        exempt from the provisions of Section 250;
            (R) For taxable years 2001 and thereafter, for the 
        taxable year in which the bonus depreciation deduction 
        is taken on the taxpayer's federal income tax return 
        under subsection (k) of Section 168 of the Internal 
        Revenue Code and for each applicable taxable year 
        thereafter, an amount equal to "x", where:
                (1) "y" equals the amount of the depreciation 
            deduction taken for the taxable year on the 
            taxpayer's federal income tax return on property 
            for which the bonus depreciation deduction was 
            taken in any year under subsection (k) of Section 
            168 of the Internal Revenue Code, but not 
            including the bonus depreciation deduction;
                (2) for taxable years ending on or before 
            December 31, 2005, "x" equals "y" multiplied by 30 
            and then divided by 70 (or "y" multiplied by 
            0.429); and
                (3) for taxable years ending after December 
            31, 2005:
                    (i) for property on which a bonus 
                depreciation deduction of 30% of the adjusted 
                basis was taken, "x" equals "y" multiplied by 
                30 and then divided by 70 (or "y" multiplied 
                by 0.429);
                    (ii) for property on which a bonus 
                depreciation deduction of 50% of the adjusted 
                basis was taken, "x" equals "y" multiplied by 
                1.0;
                    (iii) for property on which a bonus 
                depreciation deduction of 100% of the adjusted 
                basis was taken in a taxable year ending on or 
                after December 31, 2021, "x" equals the 
                depreciation deduction that would be allowed 
                on that property if the taxpayer had made the 
                election under Section 168(k)(7) of the 
                Internal Revenue Code to not claim bonus 
                depreciation on that property; and
                    (iv) for property on which a bonus 
                depreciation deduction of a percentage other 
                than 30%, 50% or 100% of the adjusted basis 
                was taken in a taxable year ending on or after 
                December 31, 2021, "x" equals "y" multiplied 
                by 100 times the percentage bonus depreciation 
                on the property (that is, 100(bonus%)) and 
                then divided by 100 times 1 minus the 
                percentage bonus depreciation on the property 
                (that is, 100(1-bonus%)). 
            The aggregate amount deducted under this 
        subparagraph in all taxable years for any one piece of 
        property may not exceed the amount of the bonus 
        depreciation deduction taken on that property on the 
        taxpayer's federal income tax return under subsection 
        (k) of Section 168 of the Internal Revenue Code. This 
        subparagraph (R) is exempt from the provisions of 
        Section 250;
            (S) If the taxpayer sells, transfers, abandons, or 
        otherwise disposes of property for which the taxpayer 
        was required in any taxable year to make an addition 
        modification under subparagraph (G-10), then an amount 
        equal to that addition modification.
            If the taxpayer continues to own property through 
        the last day of the last tax year for which a 
        subtraction is allowed with respect to that property 
        under subparagraph (R) and for which the taxpayer was 
        required in any taxable year to make an addition 
        modification under subparagraph (G-10), then an amount 
        equal to that addition modification. 
            The taxpayer is allowed to take the deduction 
        under this subparagraph only once with respect to any 
        one piece of property.
            This subparagraph (S) is exempt from the 
        provisions of Section 250;
            (T) The amount of (i) any interest income (net of 
        the deductions allocable thereto) taken into account 
        for the taxable year with respect to a transaction 
        with a taxpayer that is required to make an addition 
        modification with respect to such transaction under 
        Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
        the amount of such addition modification and (ii) any 
        income from intangible property (net of the deductions 
        allocable thereto) taken into account for the taxable 
        year with respect to a transaction with a taxpayer 
        that is required to make an addition modification with 
        respect to such transaction under Section 
        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
        203(d)(2)(D-8), but not to exceed the amount of such 
        addition modification. This subparagraph (T) is exempt 
        from the provisions of Section 250; 
            (U) An amount equal to the interest income taken 
        into account for the taxable year (net of the 
        deductions allocable thereto) with respect to 
        transactions with (i) a foreign person who would be a 
        member of the taxpayer's unitary business group but 
        for the fact the foreign person's business activity 
        outside the United States is 80% or more of that 
        person's total business activity and (ii) for taxable 
        years ending on or after December 31, 2008, to a person 
        who would be a member of the same unitary business 
        group but for the fact that the person is prohibited 
        under Section 1501(a)(27) from being included in the 
        unitary business group because he or she is ordinarily 
        required to apportion business income under different 
        subsections of Section 304, but not to exceed the 
        addition modification required to be made for the same 
        taxable year under Section 203(c)(2)(G-12) for 
        interest paid, accrued, or incurred, directly or 
        indirectly, to the same person. This subparagraph (U) 
        is exempt from the provisions of Section 250; 
            (V) An amount equal to the income from intangible 
        property taken into account for the taxable year (net 
        of the deductions allocable thereto) with respect to 
        transactions with (i) a foreign person who would be a 
        member of the taxpayer's unitary business group but 
        for the fact that the foreign person's business 
        activity outside the United States is 80% or more of 
        that person's total business activity and (ii) for 
        taxable years ending on or after December 31, 2008, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304, but 
        not to exceed the addition modification required to be 
        made for the same taxable year under Section 
        203(c)(2)(G-13) for intangible expenses and costs 
        paid, accrued, or incurred, directly or indirectly, to 
        the same foreign person. This subparagraph (V) is 
        exempt from the provisions of Section 250; 
            (W) in the case of an estate, an amount equal to 
        all amounts included in such total pursuant to the 
        provisions of Section 111 of the Internal Revenue Code 
        as a recovery of items previously deducted by the 
        decedent from adjusted gross income in the computation 
        of taxable income. This subparagraph (W) is exempt 
        from Section 250; 
            (X) an amount equal to the refund included in such 
        total of any tax deducted for federal income tax 
        purposes, to the extent that deduction was added back 
        under subparagraph (F). This subparagraph (X) is 
        exempt from the provisions of Section 250;
            (Y) For taxable years ending on or after December 
        31, 2011, in the case of a taxpayer who was required to 
        add back any insurance premiums under Section 
        203(c)(2)(G-14), such taxpayer may elect to subtract 
        that part of a reimbursement received from the 
        insurance company equal to the amount of the expense 
        or loss (including expenses incurred by the insurance 
        company) that would have been taken into account as a 
        deduction for federal income tax purposes if the 
        expense or loss had been uninsured. If a taxpayer 
        makes the election provided for by this subparagraph 
        (Y), the insurer to which the premiums were paid must 
        add back to income the amount subtracted by the 
        taxpayer pursuant to this subparagraph (Y). This 
        subparagraph (Y) is exempt from the provisions of 
        Section 250;
            (Z) For taxable years beginning after December 31, 
        2018 and before January 1, 2026, the amount of excess 
        business loss of the taxpayer disallowed as a 
        deduction by Section 461(l)(1)(B) of the Internal 
        Revenue Code; and 
            (AA) For taxable years beginning on or after 
        January 1, 2023, for any cannabis establishment 
        operating in this State and licensed under the 
        Cannabis Regulation and Tax Act or any cannabis 
        cultivation center or medical cannabis dispensing 
        organization operating in this State and licensed 
        under the Compassionate Use of Medical Cannabis 
        Program Act, an amount equal to the deductions that 
        were disallowed under Section 280E of the Internal 
        Revenue Code for the taxable year and that would not be 
        added back under this subsection. The provisions of 
        this subparagraph (AA) are exempt from the provisions 
        of Section 250. 
        (3) Limitation. The amount of any modification 
    otherwise required under this subsection shall, under 
    regulations prescribed by the Department, be adjusted by 
    any amounts included therein which were properly paid, 
    credited, or required to be distributed, or permanently 
    set aside for charitable purposes pursuant to Internal 
    Revenue Code Section 642(c) during the taxable year.
 
    (d) Partnerships.
        (1) In general. In the case of a partnership, base 
    income means an amount equal to the taxpayer's taxable 
    income for the taxable year as modified by paragraph (2).
        (2) Modifications. The taxable income referred to in 
    paragraph (1) shall be modified by adding thereto the sum 
    of the following amounts:
            (A) An amount equal to all amounts paid or accrued 
        to the taxpayer as interest or dividends during the 
        taxable year to the extent excluded from gross income 
        in the computation of taxable income;
            (B) An amount equal to the amount of tax imposed by 
        this Act to the extent deducted from gross income for 
        the taxable year;
            (C) The amount of deductions allowed to the 
        partnership pursuant to Section 707 (c) of the 
        Internal Revenue Code in calculating its taxable 
        income;
            (D) An amount equal to the amount of the capital 
        gain deduction allowable under the Internal Revenue 
        Code, to the extent deducted from gross income in the 
        computation of taxable income;
            (D-5) For taxable years 2001 and thereafter, an 
        amount equal to the bonus depreciation deduction taken 
        on the taxpayer's federal income tax return for the 
        taxable year under subsection (k) of Section 168 of 
        the Internal Revenue Code;
            (D-6) If the taxpayer sells, transfers, abandons, 
        or otherwise disposes of property for which the 
        taxpayer was required in any taxable year to make an 
        addition modification under subparagraph (D-5), then 
        an amount equal to the aggregate amount of the 
        deductions taken in all taxable years under 
        subparagraph (O) with respect to that property.
            If the taxpayer continues to own property through 
        the last day of the last tax year for which a 
        subtraction is allowed with respect to that property 
        under subparagraph (O) and for which the taxpayer was 
        allowed in any taxable year to make a subtraction 
        modification under subparagraph (O), then an amount 
        equal to that subtraction modification. 
            The taxpayer is required to make the addition 
        modification under this subparagraph only once with 
        respect to any one piece of property;
            (D-7) An amount equal to the amount otherwise 
        allowed as a deduction in computing base income for 
        interest paid, accrued, or incurred, directly or 
        indirectly, (i) for taxable years ending on or after 
        December 31, 2004, to a foreign person who would be a 
        member of the same unitary business group but for the 
        fact the foreign person's business activity outside 
        the United States is 80% or more of the foreign 
        person's total business activity and (ii) for taxable 
        years ending on or after December 31, 2008, to a person 
        who would be a member of the same unitary business 
        group but for the fact that the person is prohibited 
        under Section 1501(a)(27) from being included in the 
        unitary business group because he or she is ordinarily 
        required to apportion business income under different 
        subsections of Section 304. The addition modification 
        required by this subparagraph shall be reduced to the 
        extent that dividends were included in base income of 
        the unitary group for the same taxable year and 
        received by the taxpayer or by a member of the 
        taxpayer's unitary business group (including amounts 
        included in gross income pursuant to Sections 951 
        through 964 of the Internal Revenue Code and amounts 
        included in gross income under Section 78 of the 
        Internal Revenue Code) with respect to the stock of 
        the same person to whom the interest was paid, 
        accrued, or incurred. 
            This paragraph shall not apply to the following: 
                (i) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person who 
            is subject in a foreign country or state, other 
            than a state which requires mandatory unitary 
            reporting, to a tax on or measured by net income 
            with respect to such interest; or
                (ii) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person if 
            the taxpayer can establish, based on a 
            preponderance of the evidence, both of the 
            following:
                    (a) the person, during the same taxable 
                year, paid, accrued, or incurred, the interest 
                to a person that is not a related member, and
                    (b) the transaction giving rise to the 
                interest expense between the taxpayer and the 
                person did not have as a principal purpose the 
                avoidance of Illinois income tax, and is paid 
                pursuant to a contract or agreement that 
                reflects an arm's-length interest rate and 
                terms; or 
                (iii) the taxpayer can establish, based on 
            clear and convincing evidence, that the interest 
            paid, accrued, or incurred relates to a contract 
            or agreement entered into at arm's-length rates 
            and terms and the principal purpose for the 
            payment is not federal or Illinois tax avoidance; 
            or 
                (iv) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a person if 
            the taxpayer establishes by clear and convincing 
            evidence that the adjustments are unreasonable; or 
            if the taxpayer and the Director agree in writing 
            to the application or use of an alternative method 
            of apportionment under Section 304(f). 
                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act 
            for any tax year beginning after the effective 
            date of this amendment provided such adjustment is 
            made pursuant to regulation adopted by the 
            Department and such regulations provide methods 
            and standards by which the Department will utilize 
            its authority under Section 404 of this Act; and 
            (D-8) An amount equal to the amount of intangible 
        expenses and costs otherwise allowed as a deduction in 
        computing base income, and that were paid, accrued, or 
        incurred, directly or indirectly, (i) for taxable 
        years ending on or after December 31, 2004, to a 
        foreign person who would be a member of the same 
        unitary business group but for the fact that the 
        foreign person's business activity outside the United 
        States is 80% or more of that person's total business 
        activity and (ii) for taxable years ending on or after 
        December 31, 2008, to a person who would be a member of 
        the same unitary business group but for the fact that 
        the person is prohibited under Section 1501(a)(27) 
        from being included in the unitary business group 
        because he or she is ordinarily required to apportion 
        business income under different subsections of Section 
        304. The addition modification required by this 
        subparagraph shall be reduced to the extent that 
        dividends were included in base income of the unitary 
        group for the same taxable year and received by the 
        taxpayer or by a member of the taxpayer's unitary 
        business group (including amounts included in gross 
        income pursuant to Sections 951 through 964 of the 
        Internal Revenue Code and amounts included in gross 
        income under Section 78 of the Internal Revenue Code) 
        with respect to the stock of the same person to whom 
        the intangible expenses and costs were directly or 
        indirectly paid, incurred or accrued. The preceding 
        sentence shall not apply to the extent that the same 
        dividends caused a reduction to the addition 
        modification required under Section 203(d)(2)(D-7) of 
        this Act. As used in this subparagraph, the term 
        "intangible expenses and costs" includes (1) expenses, 
        losses, and costs for, or related to, the direct or 
        indirect acquisition, use, maintenance or management, 
        ownership, sale, exchange, or any other disposition of 
        intangible property; (2) losses incurred, directly or 
        indirectly, from factoring transactions or discounting 
        transactions; (3) royalty, patent, technical, and 
        copyright fees; (4) licensing fees; and (5) other 
        similar expenses and costs. For purposes of this 
        subparagraph, "intangible property" includes patents, 
        patent applications, trade names, trademarks, service 
        marks, copyrights, mask works, trade secrets, and 
        similar types of intangible assets;
            This paragraph shall not apply to the following:
                (i) any item of intangible expenses or costs 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a person who 
            is subject in a foreign country or state, other 
            than a state which requires mandatory unitary 
            reporting, to a tax on or measured by net income 
            with respect to such item; or
                (ii) any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, if the taxpayer can establish, based 
            on a preponderance of the evidence, both of the 
            following:
                    (a) the person during the same taxable 
                year paid, accrued, or incurred, the 
                intangible expense or cost to a person that is 
                not a related member, and
                    (b) the transaction giving rise to the 
                intangible expense or cost between the 
                taxpayer and the person did not have as a 
                principal purpose the avoidance of Illinois 
                income tax, and is paid pursuant to a contract 
                or agreement that reflects arm's-length terms; 
                or
                (iii) any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a person if 
            the taxpayer establishes by clear and convincing 
            evidence, that the adjustments are unreasonable; 
            or if the taxpayer and the Director agree in 
            writing to the application or use of an 
            alternative method of apportionment under Section 
            304(f); 
                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act 
            for any tax year beginning after the effective 
            date of this amendment provided such adjustment is 
            made pursuant to regulation adopted by the 
            Department and such regulations provide methods 
            and standards by which the Department will utilize 
            its authority under Section 404 of this Act; 
            (D-9) For taxable years ending on or after 
        December 31, 2008, an amount equal to the amount of 
        insurance premium expenses and costs otherwise allowed 
        as a deduction in computing base income, and that were 
        paid, accrued, or incurred, directly or indirectly, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304. The 
        addition modification required by this subparagraph 
        shall be reduced to the extent that dividends were 
        included in base income of the unitary group for the 
        same taxable year and received by the taxpayer or by a 
        member of the taxpayer's unitary business group 
        (including amounts included in gross income under 
        Sections 951 through 964 of the Internal Revenue Code 
        and amounts included in gross income under Section 78 
        of the Internal Revenue Code) with respect to the 
        stock of the same person to whom the premiums and costs 
        were directly or indirectly paid, incurred, or 
        accrued. The preceding sentence does not apply to the 
        extent that the same dividends caused a reduction to 
        the addition modification required under Section 
        203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
            (D-10) An amount equal to the credit allowable to 
        the taxpayer under Section 218(a) of this Act, 
        determined without regard to Section 218(c) of this 
        Act;
            (D-11) For taxable years ending on or after 
        December 31, 2017, an amount equal to the deduction 
        allowed under Section 199 of the Internal Revenue Code 
        for the taxable year; 
            (D-12) the amount that is claimed as a federal 
        deduction when computing the taxpayer's federal 
        taxable income for the taxable year and that is 
        attributable to an endowment gift for which the 
        taxpayer receives a credit under the Illinois Gives 
        Tax Credit Act; 
    and by deducting from the total so obtained the following 
    amounts:
            (E) The valuation limitation amount;
            (F) An amount equal to the amount of any tax 
        imposed by this Act which was refunded to the taxpayer 
        and included in such total for the taxable year;
            (G) An amount equal to all amounts included in 
        taxable income as modified by subparagraphs (A), (B), 
        (C) and (D) which are exempt from taxation by this 
        State either by reason of its statutes or Constitution 
        or by reason of the Constitution, treaties or statutes 
        of the United States; provided that, in the case of any 
        statute of this State that exempts income derived from 
        bonds or other obligations from the tax imposed under 
        this Act, the amount exempted shall be the interest 
        net of bond premium amortization;
            (H) Any income of the partnership which 
        constitutes personal service income as defined in 
        Section 1348(b)(1) of the Internal Revenue Code (as in 
        effect December 31, 1981) or a reasonable allowance 
        for compensation paid or accrued for services rendered 
        by partners to the partnership, whichever is greater; 
        this subparagraph (H) is exempt from the provisions of 
        Section 250;
            (I) An amount equal to all amounts of income 
        distributable to an entity subject to the Personal 
        Property Tax Replacement Income Tax imposed by 
        subsections (c) and (d) of Section 201 of this Act 
        including amounts distributable to organizations 
        exempt from federal income tax by reason of Section 
        501(a) of the Internal Revenue Code; this subparagraph 
        (I) is exempt from the provisions of Section 250;
            (J) With the exception of any amounts subtracted 
        under subparagraph (G), an amount equal to the sum of 
        all amounts disallowed as deductions by (i) Sections 
        171(a)(2) and 265(a)(2) of the Internal Revenue Code, 
        and all amounts of expenses allocable to interest and 
        disallowed as deductions by Section 265(a)(1) of the 
        Internal Revenue Code; and (ii) for taxable years 
        ending on or after August 13, 1999, Sections 
        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the 
        Internal Revenue Code, plus, (iii) for taxable years 
        ending on or after December 31, 2011, Section 
        45G(e)(3) of the Internal Revenue Code and, for 
        taxable years ending on or after December 31, 2008, 
        any amount included in gross income under Section 87 
        of the Internal Revenue Code; the provisions of this 
        subparagraph are exempt from the provisions of Section 
        250;
            (K) An amount equal to those dividends included in 
        such total which were paid by a corporation which 
        conducts business operations in a River Edge 
        Redevelopment Zone or zones created under the River 
        Edge Redevelopment Zone Act and conducts substantially 
        all of its operations from a River Edge Redevelopment 
        Zone or zones. This subparagraph (K) is exempt from 
        the provisions of Section 250;
            (L) An amount equal to any contribution made to a 
        job training project established pursuant to the Real 
        Property Tax Increment Allocation Redevelopment Act;
            (M) An amount equal to those dividends included in 
        such total that were paid by a corporation that 
        conducts business operations in a federally designated 
        Foreign Trade Zone or Sub-Zone and that is designated 
        a High Impact Business located in Illinois; provided 
        that dividends eligible for the deduction provided in 
        subparagraph (K) of paragraph (2) of this subsection 
        shall not be eligible for the deduction provided under 
        this subparagraph (M);
            (N) An amount equal to the amount of the deduction 
        used to compute the federal income tax credit for 
        restoration of substantial amounts held under claim of 
        right for the taxable year pursuant to Section 1341 of 
        the Internal Revenue Code;
            (O) For taxable years 2001 and thereafter, for the 
        taxable year in which the bonus depreciation deduction 
        is taken on the taxpayer's federal income tax return 
        under subsection (k) of Section 168 of the Internal 
        Revenue Code and for each applicable taxable year 
        thereafter, an amount equal to "x", where:
                (1) "y" equals the amount of the depreciation 
            deduction taken for the taxable year on the 
            taxpayer's federal income tax return on property 
            for which the bonus depreciation deduction was 
            taken in any year under subsection (k) of Section 
            168 of the Internal Revenue Code, but not 
            including the bonus depreciation deduction;
                (2) for taxable years ending on or before 
            December 31, 2005, "x" equals "y" multiplied by 30 
            and then divided by 70 (or "y" multiplied by 
            0.429); and
                (3) for taxable years ending after December 
            31, 2005:
                    (i) for property on which a bonus 
                depreciation deduction of 30% of the adjusted 
                basis was taken, "x" equals "y" multiplied by 
                30 and then divided by 70 (or "y" multiplied 
                by 0.429);
                    (ii) for property on which a bonus 
                depreciation deduction of 50% of the adjusted 
                basis was taken, "x" equals "y" multiplied by 
                1.0;
                    (iii) for property on which a bonus 
                depreciation deduction of 100% of the adjusted 
                basis was taken in a taxable year ending on or 
                after December 31, 2021, "x" equals the 
                depreciation deduction that would be allowed 
                on that property if the taxpayer had made the 
                election under Section 168(k)(7) of the 
                Internal Revenue Code to not claim bonus 
                depreciation on that property; and
                    (iv) for property on which a bonus 
                depreciation deduction of a percentage other 
                than 30%, 50% or 100% of the adjusted basis 
                was taken in a taxable year ending on or after 
                December 31, 2021, "x" equals "y" multiplied 
                by 100 times the percentage bonus depreciation 
                on the property (that is, 100(bonus%)) and 
                then divided by 100 times 1 minus the 
                percentage bonus depreciation on the property 
                (that is, 100(1-bonus%)). 
            The aggregate amount deducted under this 
        subparagraph in all taxable years for any one piece of 
        property may not exceed the amount of the bonus 
        depreciation deduction taken on that property on the 
        taxpayer's federal income tax return under subsection 
        (k) of Section 168 of the Internal Revenue Code. This 
        subparagraph (O) is exempt from the provisions of 
        Section 250;
            (P) If the taxpayer sells, transfers, abandons, or 
        otherwise disposes of property for which the taxpayer 
        was required in any taxable year to make an addition 
        modification under subparagraph (D-5), then an amount 
        equal to that addition modification.
            If the taxpayer continues to own property through 
        the last day of the last tax year for which a 
        subtraction is allowed with respect to that property 
        under subparagraph (O) and for which the taxpayer was 
        required in any taxable year to make an addition 
        modification under subparagraph (D-5), then an amount 
        equal to that addition modification. 
            The taxpayer is allowed to take the deduction 
        under this subparagraph only once with respect to any 
        one piece of property.
            This subparagraph (P) is exempt from the 
        provisions of Section 250;
            (Q) The amount of (i) any interest income (net of 
        the deductions allocable thereto) taken into account 
        for the taxable year with respect to a transaction 
        with a taxpayer that is required to make an addition 
        modification with respect to such transaction under 
        Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
        the amount of such addition modification and (ii) any 
        income from intangible property (net of the deductions 
        allocable thereto) taken into account for the taxable 
        year with respect to a transaction with a taxpayer 
        that is required to make an addition modification with 
        respect to such transaction under Section 
        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
        203(d)(2)(D-8), but not to exceed the amount of such 
        addition modification. This subparagraph (Q) is exempt 
        from Section 250; 
            (R) An amount equal to the interest income taken 
        into account for the taxable year (net of the 
        deductions allocable thereto) with respect to 
        transactions with (i) a foreign person who would be a 
        member of the taxpayer's unitary business group but 
        for the fact that the foreign person's business 
        activity outside the United States is 80% or more of 
        that person's total business activity and (ii) for 
        taxable years ending on or after December 31, 2008, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304, but 
        not to exceed the addition modification required to be 
        made for the same taxable year under Section 
        203(d)(2)(D-7) for interest paid, accrued, or 
        incurred, directly or indirectly, to the same person. 
        This subparagraph (R) is exempt from Section 250; 
            (S) An amount equal to the income from intangible 
        property taken into account for the taxable year (net 
        of the deductions allocable thereto) with respect to 
        transactions with (i) a foreign person who would be a 
        member of the taxpayer's unitary business group but 
        for the fact that the foreign person's business 
        activity outside the United States is 80% or more of 
        that person's total business activity and (ii) for 
        taxable years ending on or after December 31, 2008, to 
        a person who would be a member of the same unitary 
        business group but for the fact that the person is 
        prohibited under Section 1501(a)(27) from being 
        included in the unitary business group because he or 
        she is ordinarily required to apportion business 
        income under different subsections of Section 304, but 
        not to exceed the addition modification required to be 
        made for the same taxable year under Section 
        203(d)(2)(D-8) for intangible expenses and costs paid, 
        accrued, or incurred, directly or indirectly, to the 
        same person. This subparagraph (S) is exempt from 
        Section 250; 
            (T) For taxable years ending on or after December 
        31, 2011, in the case of a taxpayer who was required to 
        add back any insurance premiums under Section 
        203(d)(2)(D-9), such taxpayer may elect to subtract 
        that part of a reimbursement received from the 
        insurance company equal to the amount of the expense 
        or loss (including expenses incurred by the insurance 
        company) that would have been taken into account as a 
        deduction for federal income tax purposes if the 
        expense or loss had been uninsured. If a taxpayer 
        makes the election provided for by this subparagraph 
        (T), the insurer to which the premiums were paid must 
        add back to income the amount subtracted by the 
        taxpayer pursuant to this subparagraph (T). This 
        subparagraph (T) is exempt from the provisions of 
        Section 250; and 
            (U) For taxable years beginning on or after 
        January 1, 2023, for any cannabis establishment 
        operating in this State and licensed under the 
        Cannabis Regulation and Tax Act or any cannabis 
        cultivation center or medical cannabis dispensing 
        organization operating in this State and licensed 
        under the Compassionate Use of Medical Cannabis 
        Program Act, an amount equal to the deductions that 
        were disallowed under Section 280E of the Internal 
        Revenue Code for the taxable year and that would not be 
        added back under this subsection. The provisions of 
        this subparagraph (U) are exempt from the provisions 
        of Section 250. 
 
    (e) Gross income; adjusted gross income; taxable income.
        (1) In general. Subject to the provisions of paragraph 
    (2) and subsection (b)(3), for purposes of this Section 
    and Section 803(e), a taxpayer's gross income, adjusted 
    gross income, or taxable income for the taxable year shall 
    mean the amount of gross income, adjusted gross income or 
    taxable income properly reportable for federal income tax 
    purposes for the taxable year under the provisions of the 
    Internal Revenue Code. Taxable income may be less than 
    zero. However, for taxable years ending on or after 
    December 31, 1986, net operating loss carryforwards from 
    taxable years ending prior to December 31, 1986, may not 
    exceed the sum of federal taxable income for the taxable 
    year before net operating loss deduction, plus the excess 
    of addition modifications over subtraction modifications 
    for the taxable year. For taxable years ending prior to 
    December 31, 1986, taxable income may never be an amount 
    in excess of the net operating loss for the taxable year as 
    defined in subsections (c) and (d) of Section 172 of the 
    Internal Revenue Code, provided that when taxable income 
    of a corporation (other than a Subchapter S corporation), 
    trust, or estate is less than zero and addition 
    modifications, other than those provided by subparagraph 
    (E) of paragraph (2) of subsection (b) for corporations or 
    subparagraph (E) of paragraph (2) of subsection (c) for 
    trusts and estates, exceed subtraction modifications, an 
    addition modification must be made under those 
    subparagraphs for any other taxable year to which the 
    taxable income less than zero (net operating loss) is 
    applied under Section 172 of the Internal Revenue Code or 
    under subparagraph (E) of paragraph (2) of this subsection 
    (e) applied in conjunction with Section 172 of the 
    Internal Revenue Code.
        (2) Special rule. For purposes of paragraph (1) of 
    this subsection, the taxable income properly reportable 
    for federal income tax purposes shall mean:
            (A) Certain life insurance companies. In the case 
        of a life insurance company subject to the tax imposed 
        by Section 801 of the Internal Revenue Code, life 
        insurance company taxable income, plus the amount of 
        distribution from pre-1984 policyholder surplus 
        accounts as calculated under Section 815a of the 
        Internal Revenue Code;
            (B) Certain other insurance companies. In the case 
        of mutual insurance companies subject to the tax 
        imposed by Section 831 of the Internal Revenue Code, 
        insurance company taxable income;
            (C) Regulated investment companies. In the case of 
        a regulated investment company subject to the tax 
        imposed by Section 852 of the Internal Revenue Code, 
        investment company taxable income;
            (D) Real estate investment trusts. In the case of 
        a real estate investment trust subject to the tax 
        imposed by Section 857 of the Internal Revenue Code, 
        real estate investment trust taxable income;
            (E) Consolidated corporations. In the case of a 
        corporation which is a member of an affiliated group 
        of corporations filing a consolidated income tax 
        return for the taxable year for federal income tax 
        purposes, taxable income determined as if such 
        corporation had filed a separate return for federal 
        income tax purposes for the taxable year and each 
        preceding taxable year for which it was a member of an 
        affiliated group. For purposes of this subparagraph, 
        the taxpayer's separate taxable income shall be 
        determined as if the election provided by Section 
        243(b)(2) of the Internal Revenue Code had been in 
        effect for all such years;
            (F) Cooperatives. In the case of a cooperative 
        corporation or association, the taxable income of such 
        organization determined in accordance with the 
        provisions of Section 1381 through 1388 of the 
        Internal Revenue Code, but without regard to the 
        prohibition against offsetting losses from patronage 
        activities against income from nonpatronage 
        activities; except that a cooperative corporation or 
        association may make an election to follow its federal 
        income tax treatment of patronage losses and 
        nonpatronage losses. In the event such election is 
        made, such losses shall be computed and carried over 
        in a manner consistent with subsection (a) of Section 
        207 of this Act and apportioned by the apportionment 
        factor reported by the cooperative on its Illinois 
        income tax return filed for the taxable year in which 
        the losses are incurred. The election shall be 
        effective for all taxable years with original returns 
        due on or after the date of the election. In addition, 
        the cooperative may file an amended return or returns, 
        as allowed under this Act, to provide that the 
        election shall be effective for losses incurred or 
        carried forward for taxable years occurring prior to 
        the date of the election. Once made, the election may 
        only be revoked upon approval of the Director. The 
        Department shall adopt rules setting forth 
        requirements for documenting the elections and any 
        resulting Illinois net loss and the standards to be 
        used by the Director in evaluating requests to revoke 
        elections. Public Act 96-932 is declaratory of 
        existing law; 
            (G) Subchapter S corporations. In the case of: (i) 
        a Subchapter S corporation for which there is in 
        effect an election for the taxable year under Section 
        1362 of the Internal Revenue Code, the taxable income 
        of such corporation determined in accordance with 
        Section 1363(b) of the Internal Revenue Code, except 
        that taxable income shall take into account those 
        items which are required by Section 1363(b)(1) of the 
        Internal Revenue Code to be separately stated; and 
        (ii) a Subchapter S corporation for which there is in 
        effect a federal election to opt out of the provisions 
        of the Subchapter S Revision Act of 1982 and have 
        applied instead the prior federal Subchapter S rules 
        as in effect on July 1, 1982, the taxable income of 
        such corporation determined in accordance with the 
        federal Subchapter S rules as in effect on July 1, 
        1982; and
            (H) Partnerships. In the case of a partnership, 
        taxable income determined in accordance with Section 
        703 of the Internal Revenue Code, except that taxable 
        income shall take into account those items which are 
        required by Section 703(a)(1) to be separately stated 
        but which would be taken into account by an individual 
        in calculating his taxable income.
        (3) Recapture of business expenses on disposition of 
    asset or business. Notwithstanding any other law to the 
    contrary, if in prior years income from an asset or 
    business has been classified as business income and in a 
    later year is demonstrated to be non-business income, then 
    all expenses, without limitation, deducted in such later 
    year and in the 2 immediately preceding taxable years 
    related to that asset or business that generated the 
    non-business income shall be added back and recaptured as 
    business income in the year of the disposition of the 
    asset or business. Such amount shall be apportioned to 
    Illinois using the greater of the apportionment fraction 
    computed for the business under Section 304 of this Act 
    for the taxable year or the average of the apportionment 
    fractions computed for the business under Section 304 of 
    this Act for the taxable year and for the 2 immediately 
    preceding taxable years. 
 
    (f) Valuation limitation amount.
        (1) In general. The valuation limitation amount 
    referred to in subsections (a)(2)(G), (c)(2)(I) and 
    (d)(2)(E) is an amount equal to:
            (A) The sum of the pre-August 1, 1969 appreciation 
        amounts (to the extent consisting of gain reportable 
        under the provisions of Section 1245 or 1250 of the 
        Internal Revenue Code) for all property in respect of 
        which such gain was reported for the taxable year; 
        plus
            (B) The lesser of (i) the sum of the pre-August 1, 
        1969 appreciation amounts (to the extent consisting of 
        capital gain) for all property in respect of which 
        such gain was reported for federal income tax purposes 
        for the taxable year, or (ii) the net capital gain for 
        the taxable year, reduced in either case by any amount 
        of such gain included in the amount determined under 
        subsection (a)(2)(F) or (c)(2)(H).
        (2) Pre-August 1, 1969 appreciation amount.
            (A) If the fair market value of property referred 
        to in paragraph (1) was readily ascertainable on 
        August 1, 1969, the pre-August 1, 1969 appreciation 
        amount for such property is the lesser of (i) the 
        excess of such fair market value over the taxpayer's 
        basis (for determining gain) for such property on that 
        date (determined under the Internal Revenue Code as in 
        effect on that date), or (ii) the total gain realized 
        and reportable for federal income tax purposes in 
        respect of the sale, exchange or other disposition of 
        such property.
            (B) If the fair market value of property referred 
        to in paragraph (1) was not readily ascertainable on 
        August 1, 1969, the pre-August 1, 1969 appreciation 
        amount for such property is that amount which bears 
        the same ratio to the total gain reported in respect of 
        the property for federal income tax purposes for the 
        taxable year, as the number of full calendar months in 
        that part of the taxpayer's holding period for the 
        property ending July 31, 1969 bears to the number of 
        full calendar months in the taxpayer's entire holding 
        period for the property.
            (C) The Department shall prescribe such 
        regulations as may be necessary to carry out the 
        purposes of this paragraph.
 
    (g) Double deductions. Unless specifically provided 
otherwise, nothing in this Section shall permit the same item 
to be deducted more than once.
 
    (h) Legislative intention. Except as expressly provided by 
this Section there shall be no modifications or limitations on 
the amounts of income, gain, loss or deduction taken into 
account in determining gross income, adjusted gross income or 
taxable income for federal income tax purposes for the taxable 
year, or in the amount of such items entering into the 
computation of base income and net income under this Act for 
such taxable year, whether in respect of property values as of 
August 1, 1969 or otherwise.
(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 
102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff. 
12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; revised 
9-26-23.)
 
    (35 ILCS 5/241 new)
    Sec. 241. The Illinois Gives tax credit.
    (a) For taxable years ending on or after December 31, 2025 
and ending before January 1, 2030, each taxpayer for whom a tax 
credit has been authorized by the Department of Revenue under 
the Illinois Gives Tax Credit Act is entitled to a credit 
against the tax imposed under subsections (a) and (b) of 
Section 201 in an amount equal to the amount authorized under 
that Act.
    (b) For partners of partnerships and shareholders of 
Subchapter S corporations, there is allowed a credit under 
this Section to be determined in accordance with Section 251 
of this Act.
    (c) The credit may not be carried back and may not reduce 
the taxpayer's liability to less than zero. If the amount of 
the credit exceeds the tax liability for the year, the excess 
may be carried forward and applied to the tax liability of the 
5 taxable years following the excess credit year. The tax 
credit shall be applied to the earliest year for which there is 
a tax liability. If there are credits for more than one year 
that are available to offset a liability, the earlier credit 
shall be applied first.
 
ARTICLE 175.

 
    Section 175-5. The Property Tax Code is amended by 
changing Section 18-185 as follows:
 
    (35 ILCS 200/18-185)
    Sec. 18-185. Short title; definitions.  This Division 5 
may be cited as the Property Tax Extension Limitation Law. As 
used in this Division 5: 
    "Consumer Price Index" means the Consumer Price Index for 
All Urban Consumers for all items published by the United 
States Department of Labor. 
    "Extension limitation" means (a) the lesser of 5% or the 
percentage increase in the Consumer Price Index during the 
12-month calendar year preceding the levy year or (b) the rate 
of increase approved by voters under Section 18-205. 
    "Affected county" means a county of 3,000,000 or more 
inhabitants or a county contiguous to a county of 3,000,000 or 
more inhabitants. 
    "Taxing district" has the same meaning provided in Section 
1-150, except as otherwise provided in this Section. For the 
1991 through 1994 levy years only, "taxing district" includes 
only each non-home rule taxing district having the majority of 
its 1990 equalized assessed value within any county or 
counties contiguous to a county with 3,000,000 or more 
inhabitants. Beginning with the 1995 levy year, "taxing 
district" includes only each non-home rule taxing district 
subject to this Law before the 1995 levy year and each non-home 
rule taxing district not subject to this Law before the 1995 
levy year having the majority of its 1994 equalized assessed 
value in an affected county or counties. Beginning with the 
levy year in which this Law becomes applicable to a taxing 
district as provided in Section 18-213, "taxing district" also 
includes those taxing districts made subject to this Law as 
provided in Section 18-213. 
    "Aggregate extension" for taxing districts to which this 
Law applied before the 1995 levy year means the annual 
corporate extension for the taxing district and those special 
purpose extensions that are made annually for the taxing 
district, excluding special purpose extensions: (a) made for 
the taxing district to pay interest or principal on general 
obligation bonds that were approved by referendum; (b) made 
for any taxing district to pay interest or principal on 
general obligation bonds issued before October 1, 1991; (c) 
made for any taxing district to pay interest or principal on 
bonds issued to refund or continue to refund those bonds 
issued before October 1, 1991; (d) made for any taxing 
district to pay interest or principal on bonds issued to 
refund or continue to refund bonds issued after October 1, 
1991 that were approved by referendum; (e) made for any taxing 
district to pay interest or principal on revenue bonds issued 
before October 1, 1991 for payment of which a property tax levy 
or the full faith and credit of the unit of local government is 
pledged; however, a tax for the payment of interest or 
principal on those bonds shall be made only after the 
governing body of the unit of local government finds that all 
other sources for payment are insufficient to make those 
payments; (f) made for payments under a building commission 
lease when the lease payments are for the retirement of bonds 
issued by the commission before October 1, 1991, to pay for the 
building project; (g) made for payments due under installment 
contracts entered into before October 1, 1991; (h) made for 
payments of principal and interest on bonds issued under the 
Metropolitan Water Reclamation District Act to finance 
construction projects initiated before October 1, 1991; (i) 
made for payments of principal and interest on limited bonds, 
as defined in Section 3 of the Local Government Debt Reform 
Act, in an amount not to exceed the debt service extension base 
less the amount in items (b), (c), (e), and (h) of this 
definition for non-referendum obligations, except obligations 
initially issued pursuant to referendum; (j) made for payments 
of principal and interest on bonds issued under Section 15 of 
the Local Government Debt Reform Act; (k) made by a school 
district that participates in the Special Education District 
of Lake County, created by special education joint agreement 
under Section 10-22.31 of the School Code, for payment of the 
school district's share of the amounts required to be 
contributed by the Special Education District of Lake County 
to the Illinois Municipal Retirement Fund under Article 7 of 
the Illinois Pension Code; the amount of any extension under 
this item (k) shall be certified by the school district to the 
county clerk; (l) made to fund expenses of providing joint 
recreational programs for persons with disabilities under 
Section 5-8 of the Park District Code or Section 11-95-14 of 
the Illinois Municipal Code; (m) made for temporary relocation 
loan repayment purposes pursuant to Sections 2-3.77 and 
17-2.2d of the School Code; (n) made for payment of principal 
and interest on any bonds issued under the authority of 
Section 17-2.2d of the School Code; (o) made for contributions 
to a firefighter's pension fund created under Article 4 of the 
Illinois Pension Code, to the extent of the amount certified 
under item (5) of Section 4-134 of the Illinois Pension Code; 
and (p) made for road purposes in the first year after a 
township assumes the rights, powers, duties, assets, property, 
liabilities, obligations, and responsibilities of a road 
district abolished under the provisions of Section 6-133 of 
the Illinois Highway Code; and (q) made under Section 4 of the 
Community Mental Health Act to provide the necessary funds or 
to supplement existing funds for community mental health 
facilities and services, including facilities and services for 
the person with a developmental disability or a substance use 
disorder. 
    "Aggregate extension" for the taxing districts to which 
this Law did not apply before the 1995 levy year (except taxing 
districts subject to this Law in accordance with Section 
18-213) means the annual corporate extension for the taxing 
district and those special purpose extensions that are made 
annually for the taxing district, excluding special purpose 
extensions: (a) made for the taxing district to pay interest 
or principal on general obligation bonds that were approved by 
referendum; (b) made for any taxing district to pay interest 
or principal on general obligation bonds issued before March 
1, 1995; (c) made for any taxing district to pay interest or 
principal on bonds issued to refund or continue to refund 
those bonds issued before March 1, 1995; (d) made for any 
taxing district to pay interest or principal on bonds issued 
to refund or continue to refund bonds issued after March 1, 
1995 that were approved by referendum; (e) made for any taxing 
district to pay interest or principal on revenue bonds issued 
before March 1, 1995 for payment of which a property tax levy 
or the full faith and credit of the unit of local government is 
pledged; however, a tax for the payment of interest or 
principal on those bonds shall be made only after the 
governing body of the unit of local government finds that all 
other sources for payment are insufficient to make those 
payments; (f) made for payments under a building commission 
lease when the lease payments are for the retirement of bonds 
issued by the commission before March 1, 1995 to pay for the 
building project; (g) made for payments due under installment 
contracts entered into before March 1, 1995; (h) made for 
payments of principal and interest on bonds issued under the 
Metropolitan Water Reclamation District Act to finance 
construction projects initiated before October 1, 1991; (h-4) 
made for stormwater management purposes by the Metropolitan 
Water Reclamation District of Greater Chicago under Section 12 
of the Metropolitan Water Reclamation District Act; (h-8) made 
for payments of principal and interest on bonds issued under 
Section 9.6a of the Metropolitan Water Reclamation District 
Act to make contributions to the pension fund established 
under Article 13 of the Illinois Pension Code; (i) made for 
payments of principal and interest on limited bonds, as 
defined in Section 3 of the Local Government Debt Reform Act, 
in an amount not to exceed the debt service extension base less 
the amount in items (b), (c), and (e) of this definition for 
non-referendum obligations, except obligations initially 
issued pursuant to referendum and bonds described in 
subsections (h) and (h-8) of this definition; (j) made for 
payments of principal and interest on bonds issued under 
Section 15 of the Local Government Debt Reform Act; (k) made 
for payments of principal and interest on bonds authorized by 
Public Act 88-503 and issued under Section 20a of the Chicago 
Park District Act for aquarium or museum projects and bonds 
issued under Section 20a of the Chicago Park District Act for 
the purpose of making contributions to the pension fund 
established under Article 12 of the Illinois Pension Code; (l) 
made for payments of principal and interest on bonds 
authorized by Public Act 87-1191 or 93-601 and (i) issued 
pursuant to Section 21.2 of the Cook County Forest Preserve 
District Act, (ii) issued under Section 42 of the Cook County 
Forest Preserve District Act for zoological park projects, or 
(iii) issued under Section 44.1 of the Cook County Forest 
Preserve District Act for botanical gardens projects; (m) made 
pursuant to Section 34-53.5 of the School Code, whether levied 
annually or not; (n) made to fund expenses of providing joint 
recreational programs for persons with disabilities under 
Section 5-8 of the Park District Code or Section 11-95-14 of 
the Illinois Municipal Code; (o) made by the Chicago Park 
District for recreational programs for persons with 
disabilities under subsection (c) of Section 7.06 of the 
Chicago Park District Act; (p) made for contributions to a 
firefighter's pension fund created under Article 4 of the 
Illinois Pension Code, to the extent of the amount certified 
under item (5) of Section 4-134 of the Illinois Pension Code; 
(q) made by Ford Heights School District 169 under Section 
17-9.02 of the School Code; and (r) made for the purpose of 
making employer contributions to the Public School Teachers' 
Pension and Retirement Fund of Chicago under Section 34-53 of 
the School Code; and (s) made under Section 4 of the Community 
Mental Health Act to provide the necessary funds or to 
supplement existing funds for community mental health 
facilities and services, including facilities and services for 
the person with a developmental disability or a substance use 
disorder. 
    "Aggregate extension" for all taxing districts to which 
this Law applies in accordance with Section 18-213, except for 
those taxing districts subject to paragraph (2) of subsection 
(e) of Section 18-213, means the annual corporate extension 
for the taxing district and those special purpose extensions 
that are made annually for the taxing district, excluding 
special purpose extensions: (a) made for the taxing district 
to pay interest or principal on general obligation bonds that 
were approved by referendum; (b) made for any taxing district 
to pay interest or principal on general obligation bonds 
issued before the date on which the referendum making this Law 
applicable to the taxing district is held; (c) made for any 
taxing district to pay interest or principal on bonds issued 
to refund or continue to refund those bonds issued before the 
date on which the referendum making this Law applicable to the 
taxing district is held; (d) made for any taxing district to 
pay interest or principal on bonds issued to refund or 
continue to refund bonds issued after the date on which the 
referendum making this Law applicable to the taxing district 
is held if the bonds were approved by referendum after the date 
on which the referendum making this Law applicable to the 
taxing district is held; (e) made for any taxing district to 
pay interest or principal on revenue bonds issued before the 
date on which the referendum making this Law applicable to the 
taxing district is held for payment of which a property tax 
levy or the full faith and credit of the unit of local 
government is pledged; however, a tax for the payment of 
interest or principal on those bonds shall be made only after 
the governing body of the unit of local government finds that 
all other sources for payment are insufficient to make those 
payments; (f) made for payments under a building commission 
lease when the lease payments are for the retirement of bonds 
issued by the commission before the date on which the 
referendum making this Law applicable to the taxing district 
is held to pay for the building project; (g) made for payments 
due under installment contracts entered into before the date 
on which the referendum making this Law applicable to the 
taxing district is held; (h) made for payments of principal 
and interest on limited bonds, as defined in Section 3 of the 
Local Government Debt Reform Act, in an amount not to exceed 
the debt service extension base less the amount in items (b), 
(c), and (e) of this definition for non-referendum 
obligations, except obligations initially issued pursuant to 
referendum; (i) made for payments of principal and interest on 
bonds issued under Section 15 of the Local Government Debt 
Reform Act; (j) made for a qualified airport authority to pay 
interest or principal on general obligation bonds issued for 
the purpose of paying obligations due under, or financing 
airport facilities required to be acquired, constructed, 
installed or equipped pursuant to, contracts entered into 
before March 1, 1996 (but not including any amendments to such 
a contract taking effect on or after that date); (k) made to 
fund expenses of providing joint recreational programs for 
persons with disabilities under Section 5-8 of the Park 
District Code or Section 11-95-14 of the Illinois Municipal 
Code; (l) made for contributions to a firefighter's pension 
fund created under Article 4 of the Illinois Pension Code, to 
the extent of the amount certified under item (5) of Section 
4-134 of the Illinois Pension Code; and (m) made for the taxing 
district to pay interest or principal on general obligation 
bonds issued pursuant to Section 19-3.10 of the School Code; 
and (n) made under Section 4 of the Community Mental Health Act 
to provide the necessary funds or to supplement existing funds 
for community mental health facilities and services, including 
facilities and services for the person with a developmental 
disability or a substance use disorder. 
    "Aggregate extension" for all taxing districts to which 
this Law applies in accordance with paragraph (2) of 
subsection (e) of Section 18-213 means the annual corporate 
extension for the taxing district and those special purpose 
extensions that are made annually for the taxing district, 
excluding special purpose extensions: (a) made for the taxing 
district to pay interest or principal on general obligation 
bonds that were approved by referendum; (b) made for any 
taxing district to pay interest or principal on general 
obligation bonds issued before March 7, 1997 (the effective 
date of Public Act 89-718); (c) made for any taxing district to 
pay interest or principal on bonds issued to refund or 
continue to refund those bonds issued before March 7, 1997 
(the effective date of Public Act 89-718); (d) made for any 
taxing district to pay interest or principal on bonds issued 
to refund or continue to refund bonds issued after March 7, 
1997 (the effective date of Public Act 89-718) if the bonds 
were approved by referendum after March 7, 1997 (the effective 
date of Public Act 89-718); (e) made for any taxing district to 
pay interest or principal on revenue bonds issued before March 
7, 1997 (the effective date of Public Act 89-718) for payment 
of which a property tax levy or the full faith and credit of 
the unit of local government is pledged; however, a tax for the 
payment of interest or principal on those bonds shall be made 
only after the governing body of the unit of local government 
finds that all other sources for payment are insufficient to 
make those payments; (f) made for payments under a building 
commission lease when the lease payments are for the 
retirement of bonds issued by the commission before March 7, 
1997 (the effective date of Public Act 89-718) to pay for the 
building project; (g) made for payments due under installment 
contracts entered into before March 7, 1997 (the effective 
date of Public Act 89-718); (h) made for payments of principal 
and interest on limited bonds, as defined in Section 3 of the 
Local Government Debt Reform Act, in an amount not to exceed 
the debt service extension base less the amount in items (b), 
(c), and (e) of this definition for non-referendum 
obligations, except obligations initially issued pursuant to 
referendum; (i) made for payments of principal and interest on 
bonds issued under Section 15 of the Local Government Debt 
Reform Act; (j) made for a qualified airport authority to pay 
interest or principal on general obligation bonds issued for 
the purpose of paying obligations due under, or financing 
airport facilities required to be acquired, constructed, 
installed or equipped pursuant to, contracts entered into 
before March 1, 1996 (but not including any amendments to such 
a contract taking effect on or after that date); (k) made to 
fund expenses of providing joint recreational programs for 
persons with disabilities under Section 5-8 of the Park 
District Code or Section 11-95-14 of the Illinois Municipal 
Code; and (l) made for contributions to a firefighter's 
pension fund created under Article 4 of the Illinois Pension 
Code, to the extent of the amount certified under item (5) of 
Section 4-134 of the Illinois Pension Code; and (m) made under 
Section 4 of the Community Mental Health Act to provide the 
necessary funds or to supplement existing funds for community 
mental health facilities and services, including facilities 
and services for the person with a developmental disability or 
a substance use disorder. 
    "Debt service extension base" means an amount equal to 
that portion of the extension for a taxing district for the 
1994 levy year, or for those taxing districts subject to this 
Law in accordance with Section 18-213, except for those 
subject to paragraph (2) of subsection (e) of Section 18-213, 
for the levy year in which the referendum making this Law 
applicable to the taxing district is held, or for those taxing 
districts subject to this Law in accordance with paragraph (2) 
of subsection (e) of Section 18-213 for the 1996 levy year, 
constituting an extension for payment of principal and 
interest on bonds issued by the taxing district without 
referendum, but not including excluded non-referendum bonds. 
For park districts (i) that were first subject to this Law in 
1991 or 1995 and (ii) whose extension for the 1994 levy year 
for the payment of principal and interest on bonds issued by 
the park district without referendum (but not including 
excluded non-referendum bonds) was less than 51% of the amount 
for the 1991 levy year constituting an extension for payment 
of principal and interest on bonds issued by the park district 
without referendum (but not including excluded non-referendum 
bonds), "debt service extension base" means an amount equal to 
that portion of the extension for the 1991 levy year 
constituting an extension for payment of principal and 
interest on bonds issued by the park district without 
referendum (but not including excluded non-referendum bonds). 
A debt service extension base established or increased at any 
time pursuant to any provision of this Law, except Section 
18-212, shall be increased each year commencing with the later 
of (i) the 2009 levy year or (ii) the first levy year in which 
this Law becomes applicable to the taxing district, by the 
lesser of 5% or the percentage increase in the Consumer Price 
Index during the 12-month calendar year preceding the levy 
year. The debt service extension base may be established or 
increased as provided under Section 18-212. "Excluded 
non-referendum bonds" means (i) bonds authorized by Public Act 
88-503 and issued under Section 20a of the Chicago Park 
District Act for aquarium and museum projects; (ii) bonds 
issued under Section 15 of the Local Government Debt Reform 
Act; or (iii) refunding obligations issued to refund or to 
continue to refund obligations initially issued pursuant to 
referendum. 
    "Special purpose extensions" include, but are not limited 
to, extensions for levies made on an annual basis for 
unemployment and workers' compensation, self-insurance, 
contributions to pension plans, and extensions made pursuant 
to Section 6-601 of the Illinois Highway Code for a road 
district's permanent road fund whether levied annually or not. 
The extension for a special service area is not included in the 
aggregate extension. 
    "Aggregate extension base" means the taxing district's 
last preceding aggregate extension as adjusted under Sections 
18-135, 18-215, 18-230, 18-206, and 18-233. Beginning with 
levy year 2022, for taxing districts that are specified in 
Section 18-190.7, the taxing district's aggregate extension 
base shall be calculated as provided in Section 18-190.7. An 
adjustment under Section 18-135 shall be made for the 2007 
levy year and all subsequent levy years whenever one or more 
counties within which a taxing district is located (i) used 
estimated valuations or rates when extending taxes in the 
taxing district for the last preceding levy year that resulted 
in the over or under extension of taxes, or (ii) increased or 
decreased the tax extension for the last preceding levy year 
as required by Section 18-135(c). Whenever an adjustment is 
required under Section 18-135, the aggregate extension base of 
the taxing district shall be equal to the amount that the 
aggregate extension of the taxing district would have been for 
the last preceding levy year if either or both (i) actual, 
rather than estimated, valuations or rates had been used to 
calculate the extension of taxes for the last levy year, or 
(ii) the tax extension for the last preceding levy year had not 
been adjusted as required by subsection (c) of Section 18-135.
    Notwithstanding any other provision of law, for levy year 
2012, the aggregate extension base for West Northfield School 
District No. 31 in Cook County shall be $12,654,592. 
    Notwithstanding any other provision of law, for levy year 
2022, the aggregate extension base of a home equity assurance 
program that levied at least $1,000,000 in property taxes in 
levy year 2019 or 2020 under the Home Equity Assurance Act 
shall be the amount that the program's aggregate extension 
base for levy year 2021 would have been if the program had 
levied a property tax for levy year 2021. 
    "Levy year" has the same meaning as "year" under Section 
1-155. 
    "New property" means (i) the assessed value, after final 
board of review or board of appeals action, of new 
improvements or additions to existing improvements on any 
parcel of real property that increase the assessed value of 
that real property during the levy year multiplied by the 
equalization factor issued by the Department under Section 
17-30, (ii) the assessed value, after final board of review or 
board of appeals action, of real property not exempt from real 
estate taxation, which real property was exempt from real 
estate taxation for any portion of the immediately preceding 
levy year, multiplied by the equalization factor issued by the 
Department under Section 17-30, including the assessed value, 
upon final stabilization of occupancy after new construction 
is complete, of any real property located within the 
boundaries of an otherwise or previously exempt military 
reservation that is intended for residential use and owned by 
or leased to a private corporation or other entity, (iii) in 
counties that classify in accordance with Section 4 of Article 
IX of the Illinois Constitution, an incentive property's 
additional assessed value resulting from a scheduled increase 
in the level of assessment as applied to the first year final 
board of review market value, and (iv) any increase in 
assessed value due to oil or gas production from an oil or gas 
well required to be permitted under the Hydraulic Fracturing 
Regulatory Act that was not produced in or accounted for 
during the previous levy year. In addition, the county clerk 
in a county containing a population of 3,000,000 or more shall 
include in the 1997 recovered tax increment value for any 
school district, any recovered tax increment value that was 
applicable to the 1995 tax year calculations. 
    "Qualified airport authority" means an airport authority 
organized under the Airport Authorities Act and located in a 
county bordering on the State of Wisconsin and having a 
population in excess of 200,000 and not greater than 500,000. 
    "Recovered tax increment value" means, except as otherwise 
provided in this paragraph, the amount of the current year's 
equalized assessed value, in the first year after a 
municipality terminates the designation of an area as a 
redevelopment project area previously established under the 
Tax Increment Allocation Redevelopment Act in the Illinois 
Municipal Code, previously established under the Industrial 
Jobs Recovery Law in the Illinois Municipal Code, previously 
established under the Economic Development Project Area Tax 
Increment Act of 1995, or previously established under the 
Economic Development Area Tax Increment Allocation Act, of 
each taxable lot, block, tract, or parcel of real property in 
the redevelopment project area over and above the initial 
equalized assessed value of each property in the redevelopment 
project area. For the taxes which are extended for the 1997 
levy year, the recovered tax increment value for a non-home 
rule taxing district that first became subject to this Law for 
the 1995 levy year because a majority of its 1994 equalized 
assessed value was in an affected county or counties shall be 
increased if a municipality terminated the designation of an 
area in 1993 as a redevelopment project area previously 
established under the Tax Increment Allocation Redevelopment 
Act in the Illinois Municipal Code, previously established 
under the Industrial Jobs Recovery Law in the Illinois 
Municipal Code, or previously established under the Economic 
Development Area Tax Increment Allocation Act, by an amount 
equal to the 1994 equalized assessed value of each taxable 
lot, block, tract, or parcel of real property in the 
redevelopment project area over and above the initial 
equalized assessed value of each property in the redevelopment 
project area. In the first year after a municipality removes a 
taxable lot, block, tract, or parcel of real property from a 
redevelopment project area established under the Tax Increment 
Allocation Redevelopment Act in the Illinois Municipal Code, 
the Industrial Jobs Recovery Law in the Illinois Municipal 
Code, or the Economic Development Area Tax Increment 
Allocation Act, "recovered tax increment value" means the 
amount of the current year's equalized assessed value of each 
taxable lot, block, tract, or parcel of real property removed 
from the redevelopment project area over and above the initial 
equalized assessed value of that real property before removal 
from the redevelopment project area. 
    Except as otherwise provided in this Section, "limiting 
rate" means a fraction the numerator of which is the last 
preceding aggregate extension base times an amount equal to 
one plus the extension limitation defined in this Section and 
the denominator of which is the current year's equalized 
assessed value of all real property in the territory under the 
jurisdiction of the taxing district during the prior levy 
year. For those taxing districts that reduced their aggregate 
extension for the last preceding levy year, except for school 
districts that reduced their extension for educational 
purposes pursuant to Section 18-206, the highest aggregate 
extension in any of the last 3 preceding levy years shall be 
used for the purpose of computing the limiting rate. The 
denominator shall not include new property or the recovered 
tax increment value. If a new rate, a rate decrease, or a 
limiting rate increase has been approved at an election held 
after March 21, 2006, then (i) the otherwise applicable 
limiting rate shall be increased by the amount of the new rate 
or shall be reduced by the amount of the rate decrease, as the 
case may be, or (ii) in the case of a limiting rate increase, 
the limiting rate shall be equal to the rate set forth in the 
proposition approved by the voters for each of the years 
specified in the proposition, after which the limiting rate of 
the taxing district shall be calculated as otherwise provided. 
In the case of a taxing district that obtained referendum 
approval for an increased limiting rate on March 20, 2012, the 
limiting rate for tax year 2012 shall be the rate that 
generates the approximate total amount of taxes extendable for 
that tax year, as set forth in the proposition approved by the 
voters; this rate shall be the final rate applied by the county 
clerk for the aggregate of all capped funds of the district for 
tax year 2012.
(Source: P.A. 102-263, eff. 8-6-21; 102-311, eff. 8-6-21; 
102-519, eff. 8-20-21; 102-558, eff. 8-20-21; 102-707, eff. 
4-22-22; 102-813, eff. 5-13-22; 102-895, eff. 5-23-22; 
103-154, eff. 6-30-23.)
 
    Section 175-10. The Community Mental Health Act is amended 
by changing Sections 3a, 3b, 3e, 3f, 4, 5, 6, and 7 as follows:
 
    (405 ILCS 20/3a)  (from Ch. 91 1/2, par. 303a)
    Sec. 3a. Every governmental unit authorized to levy an 
annual tax under any of the provisions of this Act shall, 
before it may levy such tax, establish a 7 member community 
mental health board who shall administer this Act. Such board 
shall be appointed by the chairman of the governing body of a 
county, the mayor of a city, the president of a village, the 
president of an incorporated town, or the supervisor of a 
township, as the case may be, with the advice and consent of 
the governing body of such county, city, village, incorporated 
town or the town board of trustees of any township, except in 
any county with a county executive form of government, if 
applicable, the county executive shall appoint the board with 
the advice and consent of the county board. Members of the 
community mental health board shall be residents of the 
government unit and, as nearly as possible, be representative 
of interested groups of the community such as local health 
departments, medical societies, local comprehensive health 
planning agencies, hospital boards, lay associations concerned 
with mental health, developmental disabilities and substance 
abuse, and individuals with professional or lived expertise in 
mental health, developmental disabilities, and substance abuse 
as well as the general public. General public representation 
may also be considered for appointment when there are gaps in 
board duties and qualifications that cannot be filled from the 
above stated categories. Only one member shall be a member of 
the governing body, with the term of membership on the board to 
run concurrently with the elected term of the member. The 
chairman of the governing body may, upon the request of the 
community mental health board, appoint 2 additional members to 
the community mental health board. No member of the community 
mental health board may be a full-time or part-time employee 
of the Department of Human Services or a board member, 
employee or any other individual receiving compensation from 
any facility or service operating under contract to the board. 
If a successful referendum is held under Section 5 of this Act, 
all members of such board shall be appointed within 60 days 
after the local election authority certifies the passage of 
the referendum. If a community mental health board has been 
established by a county with a population of less than 500,000 
and the community mental health board is funded in whole or in 
part by a special mental health sales tax described in 
paragraph (4) of subsection (a) of Section 5-1006.5 of the 
Counties Code, the largest municipality in the county with at 
least 125,000 residents may appoint 2 additional members to 
the board. The members shall be appointed by the mayor of the 
municipality with the advice and consent of the municipality's 
governing body.
    Home rule units are exempt from this Act. However, they 
may, by ordinance, adopt the provisions of this Act, or any 
portion thereof, that they may deem advisable.
    The tax rate set forth in Section 4 may be levied by any 
non-home rule unit only pursuant to the approval by the voters 
at a referendum. Such referendum may have been held at any time 
subsequent to the effective date of the Community Mental 
Health Act.
(Source: P.A. 103-274, eff. 1-1-24; 103-565, eff. 11-17-23.)
 
    (405 ILCS 20/3b)  (from Ch. 91 1/2, par. 303b)
    Sec. 3b. The term of office of each member of the community 
mental health board shall be for 4 years, provided, however, 
that of the members first appointed, 2 shall be appointed for a 
term of 2 years, 2 for a term of 3 years and 3 for a term of 4 
years. All terms shall be measured from the first day of the 
month of appointment. Vacancies shall be filled for the 
unexpired term in the same manner as original appointments. A 
community mental health board may provide advice to the 
governing body and may establish a policy and procedure for 
the acceptance and review of applications from interested 
residents prior to making a recommendation to the appointing 
authority. 
(Source: P.A. 103-274, eff. 1-1-24.)
 
    (405 ILCS 20/3e)  (from Ch. 91 1/2, par. 303e)
    Sec. 3e. Board's powers and duties. 
    (1) Every community mental health board shall, within 30 
days after members are first appointed and within 30 days 
after members are appointed or reappointed upon the expiration 
of a member's term, meet and organize, by the election of one 
of its number as president and one as secretary and such other 
officers as it may deem necessary. It shall make rules and 
regulations concerning the rendition or operation of services 
and facilities which it directs, supervises or funds, not 
inconsistent with the provisions of this Act. It shall:
        (a) Hold a meeting prior to July 1 of each year at 
    which officers shall be elected for the ensuing year 
    beginning July 1. If the community mental health board has 
    already held or scheduled an election to take place prior 
    to July 1, an additional election is not required on the 
    basis of the appointment or reappointment of a member to 
    the community mental health board;
        (b) Hold meetings at least quarterly;
        (c) Hold special meetings upon a written request 
    signed by at least 2 members and filed with the secretary;
        (d) Review and evaluate community mental health 
    services and facilities, including services and facilities 
    for the treatment of alcoholism, drug addiction, 
    developmental disabilities, and intellectual 
    disabilities;
        (e) Authorize the disbursement of money from the 
    community mental health fund for payment for the ordinary 
    and contingent expenses of the board; 
        (f) Submit to the appointing officer and the members 
    of the governing body a written plan for a program of 
    community mental health services and facilities for 
    persons with a mental illness, a developmental disability, 
    or a substance use disorder. Such plan shall be for the 
    ensuing 12 month period. In addition, a plan shall be 
    developed for the ensuing 3 year period and such plan 
    shall be reviewed at the end of every 12 month period and 
    shall be modified as deemed advisable; .
        (g) Within amounts appropriated therefor, execute such 
    programs and maintain such services and facilities as may 
    be authorized under such appropriations, including amounts 
    appropriated under bond issues, if any;
        (h) Publish the annual budget and report within 180 
    120 days after the end of the fiscal year in a newspaper 
    distributed within the jurisdiction of the board, or, if 
    no newspaper is published within the jurisdiction of the 
    board, then one published in the county, or, if no 
    newspaper is published in the county, then in a newspaper 
    having general circulation within the jurisdiction of the 
    board. The report shall show the condition of its trust of 
    that year, the sums of money received from all sources, 
    giving the name of any donor, how all monies have been 
    expended and for what purpose, and such other statistics 
    and program information in regard to the work of the board 
    as it may deem of general interest. A copy of the budget 
    and the annual report shall be made available to the 
    Department of Human Services and to members of the General 
    Assembly whose districts include any part of the 
    jurisdiction of such board. The names of all employees, 
    consultants, and other personnel shall be set forth along 
    with the amounts of money received;
        (i) Consult with other appropriate private and public 
    agencies in the development of local plans for the most 
    efficient delivery of mental health, developmental 
    disabilities, and substance use disorder services. The 
    Board is authorized to join and to participate in the 
    activities of associations organized for the purpose of 
    promoting more efficient and effective services and 
    programs;
        (j) Have the authority to review and comment on all 
    applications for grants by any person, corporation, or 
    governmental unit providing services within the 
    geographical area of the board which provides mental 
    health facilities and services, including services for the 
    person with a mental illness, a developmental disability, 
    or a substance use disorder. The board may require funding 
    applicants to send a copy of their funding application to 
    the board at the time such application is submitted to the 
    Department of Human Services or to any other local, State 
    or federal funding source or governmental agency. Within 
    60 days of the receipt of any application, the board shall 
    submit its review and comments to the Department of Human 
    Services or to any other appropriate local, State or 
    federal funding source or governmental agency. A copy of 
    the review and comments shall be submitted to the funding 
    applicant. Within 60 days thereafter, the Department of 
    Human Services or any other appropriate local or State 
    governmental agency shall issue a written response to the 
    board and the funding applicant. The Department of Human 
    Services or any other appropriate local or State 
    governmental agency shall supply any community mental 
    health board such information about purchase-of-care 
    funds, State facility utilization, and costs in its 
    geographical area as the board may request provided that 
    the information requested is for the purpose of the 
    Community Mental Health Board complying with the 
    requirements of Section 3f, subsection (f) of this Act;
        (k) Perform such other acts as may be necessary or 
    proper to carry out the purposes of this Act.
    (2) The community mental health board has the following 
powers:
        (a) The board may enter into multiple-year contracts 
    for rendition or operation of services, facilities and 
    educational programs.
        (b) The board may arrange through intergovernmental 
    agreements or intragovernmental agreements or both for the 
    rendition of services and operation of facilities by other 
    agencies or departments of the governmental unit or county 
    in which the governmental unit is located with the 
    approval of the governing body.
        (c) To employ, establish compensation for, and set 
    policies for its personnel, including legal counsel, as 
    may be necessary to carry out the purposes of this Act and 
    prescribe the duties thereof. The board may enter into 
    multiple-year employment contracts as may be necessary for 
    the recruitment and retention of personnel and the proper 
    functioning of the board.
        (d) The board may enter into multiple-year joint 
    agreements, which shall be written, with other mental 
    health boards and boards of health to provide jointly 
    agreed upon community mental health facilities and 
    services and to pool such funds as may be deemed necessary 
    and available for this purpose.
        (e) The board may organize a not-for-profit 
    corporation for the purpose of providing direct recipient 
    services. Such corporations shall have, in addition to all 
    other lawful powers, the power to contract with persons to 
    furnish services for recipients of the corporation's 
    facilities, including psychiatrists and other physicians 
    licensed in this State to practice medicine in all of its 
    branches. Such physicians shall be considered independent 
    contractors, and liability for any malpractice shall not 
    extend to such corporation, nor to the community mental 
    health board, except for gross negligence in entering into 
    such a contract.
        (f) The board shall not operate any direct recipient 
    services for more than a 2-year period when such services 
    are being provided in the governmental unit, but shall 
    encourage, by financial support, the development of 
    private agencies to deliver such needed services, pursuant 
    to regulations of the board.
        (g) Where there are multiple boards within the same 
    planning area, as established by the Department of Human 
    Services, services may be purchased through a single 
    delivery system. In such areas, a coordinating body with 
    representation from each board shall be established to 
    carry out the service functions of this Act. In the event 
    any such coordinating body purchases or improves real 
    property, such body shall first obtain the approval of the 
    governing bodies of the governmental units in which the 
    coordinating body is located.
        (h) The board may enter into multiple-year joint 
    agreements with other governmental units located within 
    the geographical area of the board. Such agreements shall 
    be written and shall provide for the rendition of services 
    by the board to the residents of such governmental units. 
        (i) The board may enter into multiple-year joint 
    agreements with federal, State, and local governments, 
    including the Department of Human Services or any other 
    appropriate local or State governmental agency, whereby 
    the board will provide certain services. All such joint 
    agreements must provide for the exchange of relevant data. 
    However, nothing in this Act shall be construed to permit 
    the abridgement of the confidentiality of patient records.
        (j) The board may receive gifts from private sources 
    for purposes not inconsistent with the provisions of this 
    Act.
        (k) The board may receive federal Federal, State, and 
    local funds for purposes not inconsistent with the 
    provisions of this Act.
        (l) The board may establish scholarship programs. Such 
    programs shall require equivalent service or reimbursement 
    pursuant to regulations of the board.
        (m) The board may sell, rent, or lease real property 
    for purposes consistent with this Act.
        (n) The board may: (i) own real property, lease real 
    property as lessee, or acquire real property by purchase, 
    construction, lease-purchase agreement, or otherwise; (ii) 
    take title to the property in the board's name; (iii) 
    borrow money and issue debt instruments, mortgages, 
    purchase-money mortgages, and other security instruments 
    with respect to the property; and (iv) maintain, repair, 
    remodel, or improve the property. All of these activities 
    must be for purposes consistent with this Act as may be 
    reasonably necessary for the housing and proper 
    functioning of the board. The board may use moneys in the 
    Community Mental Health Fund for these purposes.
        (o) The board may organize a not-for-profit 
    corporation (i) for the purpose of raising money to be 
    distributed by the board for providing community mental 
    health services and facilities for the treatment of 
    alcoholism, drug addiction, developmental disabilities, 
    and intellectual disabilities or (ii) for other purposes 
    not inconsistent with this Act.
        (p) The board may fix a fiscal year for the board.
        (q) The board has the responsibility to set, maintain, 
    and implement the budget.
        (r) The board may establish professional incentive 
    programs for the purposes of workforce development and 
    retention that may include education assistance, student 
    loan repayment, professional certification and licensure 
    assistance, and internship stipends. 
    Every board shall be subject to the requirements under the 
Freedom of Information Act and the Open Meetings Act. 
(Source: P.A. 103-274, eff. 1-1-24; revised 1-20-24.)
 
    (405 ILCS 20/3f)  (from Ch. 91 1/2, par. 303f)
    Sec. 3f. Annually, each community mental health board 
shall prepare and submit, for informational purposes in the 
appropriations process, to the appointing officer and 
governing body referred to in Section 3a: (a) an annual budget 
showing the estimated receipts and intended disbursements 
pursuant to this Act for the fiscal year immediately following 
the date the budget is submitted, which date must be at least 
30 days prior to the start of the fiscal year, and (b) an 
annual report detailing the income received and disbursements 
made pursuant to this Act during the fiscal year just 
preceding the date the annual report is submitted, which date 
must be within 180 90 days of the end close of that fiscal 
year. Such report shall also include those matters set forth 
in Section 8 of this Act.
(Source: P.A. 95-336, eff. 8-21-07.)
 
    (405 ILCS 20/4)  (from Ch. 91 1/2, par. 304)
    Sec. 4. In order to provide the necessary funds or to 
supplement existing funds for such community mental health 
facilities and services, including facilities and services for 
the person with a developmental disability or a substance use 
disorder, the governing body of any governmental unit, subject 
to the provisions of Section 5, may levy an annual tax of not 
to exceed .15% upon all of the taxable property in such 
governmental unit at the value thereof, as equalized or 
assessed by the Department of Revenue. Such tax shall be 
levied and collected in the same manner as other governmental 
unit taxes, but shall not be included in any limitation 
otherwise prescribed as to the rate or amount of governmental 
unit taxes, but shall be in addition thereto and in excess 
thereof.
    An annual tax levied by any governmental unit under this 
Section is separate and distinct from all other property taxes 
levied by that governmental unit and (1) shall not be 
considered an increase for purposes of the application of the 
Truth in Taxation Law and its requirements and (2) shall not be 
subject to the Property Tax Extension Limitation Law. 
    When collected, such tax shall be paid into a special fund 
to be designated as the "Community Mental Health Fund" which 
shall, upon authorization by the appropriate governmental 
unit, be administered by the community mental health board and 
used only for the purposes specified in this Act. Nothing 
contained herein shall in any way preclude the use of other 
funds available for such purposes under any existing Federal, 
State or local statute. Interest earned from moneys deposited 
in this Fund shall only be used for purposes which are 
authorized by this Act.
    In any city, village, incorporated town, or township which 
levies a tax for the purpose of providing community mental 
health facilities and services and part or all of such city, 
village, incorporated town, or township is in a county or 
township, as the case may be, which levies a tax to provide 
community mental health facilities and services under the 
provisions of this Act, such county or township, as the case 
may be, shall pay to such city, village, incorporated town, or 
township, as the case may be, the entire amount collected from 
taxes under this Section on property subject to a tax which any 
city, village, incorporated town, or township thereof levies 
to provide community mental health facilities and services.
    Whenever any city, village, incorporated town, or township 
receives any payments from a county or township as provided 
above, such city, village, incorporated town, or township 
shall reduce and abate from the tax levied by the authority of 
this Section a rate which would produce an amount equal to the 
amount received from such county or township.
(Source: P.A. 95-336, eff. 8-21-07.)
 
    (405 ILCS 20/5)  (from Ch. 91 1/2, par. 305)
    Sec. 5. (a) When the governing body of a governmental unit 
passes a resolution as provided in Section 4 asking that an 
annual tax may be levied for the purpose of providing such 
mental health facilities and services, including facilities 
and services for the person with a developmental disability or 
a substance use disorder, in the community and so instructs 
the clerk of the governmental unit such clerk shall certify 
the proposition to the proper election officials for 
submission at a regular election in accordance with the 
general election law. The proposition shall be in 
substantially the following form:
----------------------------

    Shall............  (governmental

unit) levy an annual tax

not to exceed of (no not                  YES

more than .15%) for the purpose

of providing community mental

health facilities and        --------------------------------

services including facilities

and services for persons  with

a developmental disability or a           NO

substance use disorder?

-------------------------------------------------------------
    (a-5) In addition, the ballot for any proposition 
submitted pursuant to this Section shall have printed thereon, 
but not as part of the proposition submitted, only the 
following supplemental information (which shall be supplied to 
the election authority by the taxing district) in 
substantially the following form:
        (1) The approximate amount of taxes extendable at the 
    most recently extended limiting rate is $...., and the 
    approximate amount of taxes extendable if the proposition 
    is approved is $....
        (2) For the .... (insert the first levy year for which 
    the new rate or increase limiting rate will be applicable) 
    levy year the approximate amount of the additional tax 
    extendable against property containing a single family 
    residence and having a fair market value at the time of the 
    referendum of $100,000 is estimated to be $....
    If a proposition contains the language in substantially 
the form provided above the referendum is valid 
notwithstanding any other provision of the law. If the 
governmental unit is also subject to the Property Tax 
Extension Limitation Law, then the proposition shall also 
comply with the Property Tax Extension Limitation Law. 
Notwithstanding any provision of this subsection, any 
referendum imposing an annual tax on or after January 1, 1994 
and prior to the effective date of this amendatory Act of the 
103rd General Assembly that complies with subsection (a) is 
hereby validated. 
    (b) If a majority of all the votes cast upon the 
proposition are for the levy of such tax, the governing body of 
such governmental unit shall thereafter annually levy a tax 
not to exceed the rate set forth in Section 4. Thereafter, the 
governing body shall in the annual appropriation bill 
appropriate from such funds such sum or sums of money as may be 
deemed necessary by the community mental health board, based 
upon the community mental health board's budget, the board's 
annual mental health report, and the local mental health plan 
to defray necessary expenses and liabilities in providing for 
such community mental health facilities and services.
    (c) If the governing body of a governmental unit levies a 
tax under Section 4 of this Act and the rate specified in the 
proposition under subsection (a) of this Section is less than 
0.15%, then the governing body of the governmental unit may, 
upon referendum approval, increase that rate to not more than 
0.15%. The governing body shall instruct the clerk of the 
governmental unit to certify the proposition to the proper 
election officials for submission at a regular election in 
accordance with the general election law. The proposition 
shall be in the following form: 
        "Shall the tax imposed by (governmental unit) for the 
    purpose of providing community mental health facilities 
    and services, including facilities and services for 
    persons with a developmental disability or substance use 
    disorder be increased to (not more than 0.15%)?" 
    If a majority of all the votes cast upon the proposition 
are for the increase of the tax, then the governing body of the 
governmental unit may thereafter annually levy a tax not to 
exceed the rate set forth in the referendum question. Nothing 
in this Section prevents a governmental unit from levying less 
than the amount approved by the voters via referendum in any 
given year or varying the amount levied from year to year as 
approved by the governmental unit. 
(Source: P.A. 102-839, eff. 5-13-22; 102-935, eff. 7-1-22; 
103-154, eff. 6-30-23; 103-274, eff. 1-1-24; 103-565, eff. 
11-17-23.)
 
    (405 ILCS 20/6)  (from Ch. 91 1/2, par. 306)
    Sec. 6. Whenever the governing body of any governmental 
unit has not provided the community mental health facilities 
and services provided in Section 2 and levied the tax provided 
in Section 4 and a petition signed by electors of the 
governmental unit equal in number to at least 10% of the total 
votes cast for the office which received the greatest total 
number of votes at the last preceding general governmental 
unit election is presented to the clerk of the governmental 
unit requesting the establishment and maintenance of such 
community mental health facilities and services, including 
facilities and services for the person with a developmental 
disability or a substance use disorder, for residents thereof 
and the levy of such an annual tax therefor, the governing body 
of the governmental unit, subject to the provisions of Section 
7, shall establish and maintain such community mental health 
facilities and services and shall levy such an annual tax of 
not to exceed .15% upon all of the taxable property in such 
governmental unit at the value thereof, as equalized or 
assessed by the Department of Revenue. Such tax shall be 
levied and collected in the same manner as other governmental 
unit taxes, but shall not be included in any limitation 
otherwise prescribed as to the rate or amount of governmental 
unit taxes, but shall be in addition thereto and in excess 
thereof.
    An annual tax levied by any governmental unit under this 
Section is separate and distinct from all other property taxes 
levied by that governmental unit and (1) shall not be 
considered an increase for purposes of the application of the 
Truth in Taxation Law and its requirements and (2) shall not be 
subject to the Property Tax Extension Limitation Law. 
    When collected, such tax shall be paid into a special fund 
to be designated as the "Community Mental Health Fund" which 
shall, upon authorization by the appropriate governmental 
unit, be administered by the community mental health board and 
used only for the purposes specified in this Act. Nothing 
contained herein shall in any way preclude the use of other 
funds available for such purposes under any existing Federal, 
State or local statute. Interest earned from moneys deposited 
in this Fund shall only be used for purposes which are 
authorized by this Act.
    In any city, village, incorporated town, or township which 
levies a tax for the purpose of providing community mental 
health facilities and services and part or all of such city, 
village, incorporated town, or township is in a county or 
township, as the case may be, which levies a tax to provide 
community mental health facilities and services under the 
provisions of this Act, such county or township, as the case 
may be, shall pay to such city, village, incorporated town, or 
township, as the case may be, the entire amount collected from 
taxes under this Section on property subject to a tax which any 
city, village, incorporated town, or township thereof levies 
to provide community mental health facilities and services.
    Whenever any city, village, incorporated town, or township 
receives any payments from a county or township as provided 
above, such city, village, incorporated town, or township 
shall reduce and abate from the tax levied by the authority of 
this Section a rate which would produce an amount equal to the 
amount received from such county or township.
(Source: P.A. 95-336, eff. 8-21-07.)
 
    (405 ILCS 20/7)  (from Ch. 91 1/2, par. 307)
    Sec. 7. When the petition provided for in Section 6 is 
presented to the clerk of the governmental unit requesting the 
establishment and maintenance of such mental health facilities 
and services for residents of the community and the levy of 
such an annual tax therefor, the clerk of the governmental 
unit shall certify to the proper election officials the 
proposition for the levy of such tax which shall be submitted 
at a regular election in accordance with the general election 
law. The proposition shall be in substantially the following 
form:
--------------------------------------------------------

    Shall....................

(governmental unit) establish and

maintain community mental health           YES

facilities and services including

facilities and services for the        ----------------------

person with a developmental

disability or a substance                  NO

use disorder and levy therefor an

annual tax of not to exceed .15%?

-------------------------------------------------------------
    In addition to certification of the question, the clerk of 
the governmental unit shall prepare and submit to the proper 
elected officials the following language which shall have 
printed thereon, but not as part of the proposition submitted, 
only the following supplemental information (which shall be 
supplied to the election authority by the taxing district) in 
substantially the following form:
        (1) The approximate amount of taxes extendable at the 
    most recently extended limiting rate is $...., and the 
    approximate amount of taxes extendable if the proposition 
    is approved is $....
        (2) For the .... (insert the first levy year for which 
    the new rate or increase limiting rate will be applicable) 
    levy year the approximate amount of the additional tax 
    extendable against property containing a single family 
    residence and having a fair market value at the time of the 
    referendum of $100,000 is estimated to be $....
    If a proposition contains the language in substantially 
the form provided in paragraphs (1) and (2), the referendum is 
valid notwithstanding any other provision of the law. 
    If a majority of all the votes cast upon the proposition 
are in favor thereof, the governing body of such governmental 
unit shall establish and maintain such community mental health 
facilities and services and shall annually levy such tax. 
Thereafter, the governing body shall in the annual 
appropriation bill appropriate from such funds such sum or 
sums of money as may be deemed necessary, based upon the 
community mental health board's budget, the board's annual 
mental health report, and the board's plan to defray necessary 
expenses and liabilities in providing for such community 
mental health facilities and services.
    Nothing in this Section prevents a governmental unit from 
levying less than the amount approved by the voters via 
referendum in any given year or varying the amount levied from 
year to year as approved by the governmental unit. 
(Source: P.A. 95-336, eff. 8-21-07.)
 
    Section 175-97. Retroactivity. The changes made by this 
Article apply to referenda creating community mental health 
boards, including community mental health boards located in 
counties that have adopted a county executive form of 
government under Division 2-5 of the Counties Code, to levy an 
annual tax for the establishment and maintenance of mental 
health facilities and services for residents of the community 
that were approved or validated on or after January 1, 2020 and 
to referenda that are approved on or after the effective date 
of this Article.
 
ARTICLE 999.

 
    Section 999-95. No acceleration or delay. Where this Act 
makes changes in a statute that is represented in this Act by 
text that is not yet or no longer in effect (for example, a 
Section represented by multiple versions), the use of that 
text does not accelerate or delay the taking effect of (i) the 
changes made by this Act or (ii) provisions derived from any 
other Public Act.
 
    Section 999-97. Severability. The provisions of this Act 
are severable under Section 1.31 of the Statute on Statutes.
 
    Section 999-99. Effective date. This Act takes effect upon 
becoming law, except that Article 65 takes effect July 1, 
2024, Articles 25, 75, 80, 93, 125, 135, and 140 take effect 
January 1, 2025, and Article 150 takes effect July 1, 2025.