SB2089 104TH GENERAL ASSEMBLY

LRB104 09589 HLH 19652 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2089

Introduced 2/6/2025, by Sen. Erica Harriss

SYNOPSIS AS INTRODUCED:

35 ILCS 105/2c	from Ch. 120, par. 439.2c
35 ILCS 110/3c	from Ch. 120, par. 439.33c
35 ILCS 115/2c	from Ch. 120, par. 439.102c
35 ILCS 120/2h	from Ch. 120, par. 441h

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. In provisions concerning organizations that are operated exclusively for educational purposes, provides that the term "tax-supported public school" includes any student organization that meets both of the following: (1) enrollment in the student organization is limited to students from a particular public elementary or secondary school; and (2) the student organization is affiliated with the public elementary or secondary school but is not sponsored by the public elementary or secondary school. Effective immediately.

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; 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. As used in this Section, the term "tax-supported public school" includes, but is not limited to, any student organization that meets both of the following: (1) enrollment in the student organization is limited to students from a particular public elementary or secondary school; and (2) the student organization is affiliated with the public elementary or secondary school but is not sponsored by the public elementary or secondary school.

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 Service Use Tax Act is amended by changing Section 3c as follows:

(35 ILCS 110/3c) (from Ch. 120, par. 439.33c)

Sec. 3c. 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; 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. As used in this Section, the term "tax-supported public school" includes, but is not limited to, any student organization that meets both of the following: (1) enrollment in the student organization is limited to students from a particular public elementary or secondary school; and (2) the student organization is affiliated with the public elementary or secondary school but is not sponsored by the public elementary or secondary school.

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 with 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 15. The Service Occupation Tax Act is amended by changing Section 2c as follows:

(35 ILCS 115/2c) (from Ch. 120, par. 439.102c)

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; 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. As used in this Section, the term "tax-supported public school" includes, but is not limited to, any student organization that meets both of the following: (1) enrollment in the student organization is limited to students from a particular public elementary or secondary school; and (2) the student organization is affiliated with the public elementary or secondary school but is not sponsored by the public elementary or secondary school.

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 20. 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; 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. As used in this Section, the term "tax-supported public school" includes, but is not limited to, any student organization that meets both of the following: (1) enrollment in the student organization is limited to students from a particular public elementary or secondary school; and (2) the student organization is affiliated with the public elementary or secondary school but is not sponsored by the public elementary or secondary school.

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 99. Effective date. This Act takes effect upon becoming law.