HB2864 104TH GENERAL ASSEMBLY

LRB104 10619 HLH 20695 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB2864

Introduced 2/6/2025, by Rep. Amy Elik

SYNOPSIS AS INTRODUCED:

35 ILCS 105/2c	from Ch. 120, par. 439.2c
35 ILCS 120/2h	from Ch. 120, par. 441h

Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, for the purposes of those Acts, a corporation, limited liability company, society, association, foundation, or institution organized and operated exclusively for educational purposes shall include nonprofit corporations that solely conduct extracurricular activities on behalf of tax-supported public schools.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Use Tax Act is amended by changing Section 2c as follows:

(35 ILCS 105/2c) (from Ch. 120, par. 439.2c)

Sec. 2c. For purposes of this Act, a corporation, limited liability company, society, association, foundation, or institution organized and operated exclusively for educational purposes shall include: all tax-supported public schools; private schools which offer systematic instruction in useful branches of learning by methods common to public schools and which compare favorably in their scope and intensity with the course of study presented in tax-supported schools; nonprofit corporations that solely conduct extracurricular activities on behalf of tax-supported public schools; licensed day care centers as defined in Section 2.09 of the Child Care Act of 1969 which are operated by a not for profit corporation, society, association, foundation, institution or organization; 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.

However, a corporation, limited liability company, society, association, foundation or institution organized and operated for the purpose of offering professional, trade or business seminars of short duration, self-improvement or personality development courses, courses which are avocational or recreational in nature, courses pursued entirely by open circuit television or radio, correspondence courses, or courses which do not provide specialized training within a specific vocational or technical field shall not be considered to be organized and operated exclusively for educational purposes.

(Source: P.A. 88-480.)

Section 10. The Retailers' Occupation Tax Act is amended by changing Section 2h as follows:

(35 ILCS 120/2h) (from Ch. 120, par. 441h)

Sec. 2h. For purposes of this Act, a corporation, limited liability company, society, association, foundation, or institution organized and operated exclusively for educational purposes shall include: all tax-supported public schools; private schools which offer systematic instruction in useful branches of learning by methods common to public schools and which compare favorably in their scope and intensity with the course of study presented in tax-supported schools; nonprofit corporations that solely conduct extracurricular activities on behalf of tax-supported public schools; licensed day care centers as defined in Section 2.09 of the Child Care Act of 1969 which are operated by a not for profit corporation, society, association, foundation, institution or organization; 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.

However, a corporation, limited liability company, society, association, foundation or institution organized and operated for the purpose of offering professional, trade or business seminars of short duration, self-improvement or personality development courses, courses which are avocational or recreational in nature, courses pursued entirely by open circuit television or radio, correspondence courses, or courses which do not provide specialized training within a specific vocational or technical field shall not be considered to be organized and operated exclusively for educational purposes.

(Source: P.A. 88-480.)