SB0157 EnrolledLRB102 10128 HLH 16591 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4
ARTICLE 5. EDGE CREDIT

 
5    Section 5-5. The Economic Development for a Growing
6Economy Tax Credit Act is amended by changing Sections 5-5,
75-15, 5-20, and 5-77 as follows:
 
8    (35 ILCS 10/5-5)
9    Sec. 5-5. Definitions. As used in this Act:
10    "Agreement" means the Agreement between a Taxpayer and the
11Department under the provisions of Section 5-50 of this Act.
12    "Applicant" means a Taxpayer that is operating a business
13located or that the Taxpayer plans to locate within the State
14of Illinois and that is engaged in interstate or intrastate
15commerce for the purpose of manufacturing, processing,
16assembling, warehousing, or distributing products, conducting
17research and development, providing tourism services, or
18providing services in interstate commerce, office industries,
19or agricultural processing, but excluding retail, retail food,
20health, or professional services. "Applicant" does not include
21a Taxpayer who closes or substantially reduces an operation at
22one location in the State and relocates substantially the same

 

 

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1operation to another location in the State. This does not
2prohibit a Taxpayer from expanding its operations at another
3location in the State, provided that existing operations of a
4similar nature located within the State are not closed or
5substantially reduced. This also does not prohibit a Taxpayer
6from moving its operations from one location in the State to
7another location in the State for the purpose of expanding the
8operation provided that the Department determines that
9expansion cannot reasonably be accommodated within the
10municipality in which the business is located, or in the case
11of a business located in an incorporated area of the county,
12within the county in which the business is located, after
13conferring with the chief elected official of the municipality
14or county and taking into consideration any evidence offered
15by the municipality or county regarding the ability to
16accommodate expansion within the municipality or county.
17    "Credit" means the amount agreed to between the Department
18and Applicant under this Act, but not to exceed the lesser of:
19(1) the sum of (i) 50% of the Incremental Income Tax
20attributable to New Employees at the Applicant's project and
21(ii) 10% of the training costs of New Employees; or (2) 100% of
22the Incremental Income Tax attributable to New Employees at
23the Applicant's project. However, if the project is located in
24an underserved area, then the amount of the Credit may not
25exceed the lesser of: (1) the sum of (i) 75% of the Incremental
26Income Tax attributable to New Employees at the Applicant's

 

 

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1project and (ii) 10% of the training costs of New Employees; or
2(2) 100% of the Incremental Income Tax attributable to New
3Employees at the Applicant's project. If an Applicant agrees
4to hire the required number of New Employees, then the maximum
5amount of the Credit for that Applicant may be increased by an
6amount not to exceed 25% of the Incremental Income Tax
7attributable to retained employees at the Applicant's project;
8provided that, in order to receive the increase for retained
9employees, the Applicant must provide the additional evidence
10required under paragraph (3) of subsection (b) of Section
115-25.
12    "Department" means the Department of Commerce and Economic
13Opportunity.
14    "Director" means the Director of Commerce and Economic
15Opportunity.
16    "Full-time Employee" means an individual who is employed
17for consideration for at least 35 hours each week or who
18renders any other standard of service generally accepted by
19industry custom or practice as full-time employment. An
20individual for whom a W-2 is issued by a Professional Employer
21Organization (PEO) is a full-time employee if employed in the
22service of the Applicant for consideration for at least 35
23hours each week or who renders any other standard of service
24generally accepted by industry custom or practice as full-time
25employment to Applicant.
26    "Incremental Income Tax" means the total amount withheld

 

 

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1during the taxable year from the compensation of New Employees
2and, if applicable, retained employees under Article 7 of the
3Illinois Income Tax Act arising from employment at a project
4that is the subject of an Agreement.
5    "New Construction EDGE Agreement" means the Agreement
6between a Taxpayer and the Department under the provisions of
7Section 5-51 of this Act.
8    "New Construction EDGE Credit" means an amount agreed to
9between the Department and the Applicant under this Act as
10part of a New Construction EDGE Agreement that does not exceed
1150% of the Incremental Income Tax attributable to New
12Construction EDGE Employees at the Applicant's project;
13however, if the New Construction EDGE Project is located in an
14underserved area, then the amount of the New Construction EDGE
15Credit may not exceed 75% of the Incremental Income Tax
16attributable to New Construction EDGE Employees at the
17Applicant's New Construction EDGE Project.
18    "New Construction EDGE Employee" means a laborer or worker
19who is employed by an Illinois contractor or subcontractor in
20the actual construction work on the site of a New Construction
21EDGE Project, pursuant to a New Construction EDGE Agreement.
22    "New Construction EDGE Incremental Income Tax" means the
23total amount withheld during the taxable year from the
24compensation of New Construction EDGE Employees.
25    "New Construction EDGE Project" means the building of a
26Taxpayer's structure or building, or making improvements of

 

 

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1any kind to real property. "New Construction EDGE Project"
2does not include the routine operation, routine repair, or
3routine maintenance of existing structures, buildings, or real
4property.
5    "New Employee" means:
6        (a) A Full-time Employee first employed by a Taxpayer
7    in the project that is the subject of an Agreement and who
8    is hired after the Taxpayer enters into the tax credit
9    Agreement.
10        (b) The term "New Employee" does not include:
11            (1) an employee of the Taxpayer who performs a job
12        that was previously performed by another employee, if
13        that job existed for at least 6 months before hiring
14        the employee;
15            (2) an employee of the Taxpayer who was previously
16        employed in Illinois by a Related Member of the
17        Taxpayer and whose employment was shifted to the
18        Taxpayer after the Taxpayer entered into the tax
19        credit Agreement; or
20            (3) a child, grandchild, parent, or spouse, other
21        than a spouse who is legally separated from the
22        individual, of any individual who has a direct or an
23        indirect ownership interest of at least 5% in the
24        profits, capital, or value of the Taxpayer.
25        (c) Notwithstanding paragraph (1) of subsection (b),
26    an employee may be considered a New Employee under the

 

 

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1    Agreement if the employee performs a job that was
2    previously performed by an employee who was:
3            (1) treated under the Agreement as a New Employee;
4        and
5            (2) promoted by the Taxpayer to another job.
6        (d) Notwithstanding subsection (a), the Department may
7    award Credit to an Applicant with respect to an employee
8    hired prior to the date of the Agreement if:
9            (1) the Applicant is in receipt of a letter from
10        the Department stating an intent to enter into a
11        credit Agreement;
12            (2) the letter described in paragraph (1) is
13        issued by the Department not later than 15 days after
14        the effective date of this Act; and
15            (3) the employee was hired after the date the
16        letter described in paragraph (1) was issued.
17    "Noncompliance Date" means, in the case of a Taxpayer that
18is not complying with the requirements of the Agreement or the
19provisions of this Act, the day following the last date upon
20which the Taxpayer was in compliance with the requirements of
21the Agreement and the provisions of this Act, as determined by
22the Director, pursuant to Section 5-65.
23    "Pass Through Entity" means an entity that is exempt from
24the tax under subsection (b) or (c) of Section 205 of the
25Illinois Income Tax Act.
26    "Professional Employer Organization" (PEO) means an

 

 

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1employee leasing company, as defined in Section 206.1(A)(2) of
2the Illinois Unemployment Insurance Act.
3    "Related Member" means a person that, with respect to the
4Taxpayer during any portion of the taxable year, is any one of
5the following:
6        (1) An individual stockholder, if the stockholder and
7    the members of the stockholder's family (as defined in
8    Section 318 of the Internal Revenue Code) own directly,
9    indirectly, beneficially, or constructively, in the
10    aggregate, at least 50% of the value of the Taxpayer's
11    outstanding stock.
12        (2) A partnership, estate, or trust and any partner or
13    beneficiary, if the partnership, estate, or trust, and its
14    partners or beneficiaries own directly, indirectly,
15    beneficially, or constructively, in the aggregate, at
16    least 50% of the profits, capital, stock, or value of the
17    Taxpayer.
18        (3) A corporation, and any party related to the
19    corporation in a manner that would require an attribution
20    of stock from the corporation to the party or from the
21    party to the corporation under the attribution rules of
22    Section 318 of the Internal Revenue Code, if the Taxpayer
23    owns directly, indirectly, beneficially, or constructively
24    at least 50% of the value of the corporation's outstanding
25    stock.
26        (4) A corporation and any party related to that

 

 

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1    corporation in a manner that would require an attribution
2    of stock from the corporation to the party or from the
3    party to the corporation under the attribution rules of
4    Section 318 of the Internal Revenue Code, if the
5    corporation and all such related parties own in the
6    aggregate at least 50% of the profits, capital, stock, or
7    value of the Taxpayer.
8        (5) A person to or from whom there is attribution of
9    stock ownership in accordance with Section 1563(e) of the
10    Internal Revenue Code, except, for purposes of determining
11    whether a person is a Related Member under this paragraph,
12    20% shall be substituted for 5% wherever 5% appears in
13    Section 1563(e) of the Internal Revenue Code.
14    "Startup taxpayer" means a corporation, partnership, or
15other entity incorporated or organized no more than 5 years
16before the filing of an application for an Agreement that has
17never had any Illinois income tax liability, excluding any
18Illinois income tax liability of a Related Member which shall
19not be attributed to the startup taxpayer.
20    "Taxpayer" means an individual, corporation, partnership,
21or other entity that has any Illinois Income Tax liability.
22    Until July 1, 2022, "underserved "Underserved area" means
23a geographic area that meets one or more of the following
24conditions:
25        (1) the area has a poverty rate of at least 20%
26    according to the latest federal decennial census;

 

 

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1        (2) 75% or more of the children in the area
2    participate in the federal free lunch program according to
3    reported statistics from the State Board of Education;
4        (3) at least 20% of the households in the area receive
5    assistance under the Supplemental Nutrition Assistance
6    Program (SNAP); or
7        (4) the area has an average unemployment rate, as
8    determined by the Illinois Department of Employment
9    Security, that is more than 120% of the national
10    unemployment average, as determined by the U.S. Department
11    of Labor, for a period of at least 2 consecutive calendar
12    years preceding the date of the application.
13    On and after July 1, 2022, "underserved area" means a
14geographic area that meets one or more of the following
15conditions:
16        (1) the area has a poverty rate of at least 20%
17    according to the latest American Community Survey;
18        (2) 35% or more of the families with children in the
19    area are living below 130% of the poverty line, according
20    to the latest American Community Survey;
21        (3) at least 20% of the households in the area receive
22    assistance under the Supplemental Nutrition Assistance
23    Program (SNAP); or
24        (4) the area has an average unemployment rate, as
25    determined by the Illinois Department of Employment
26    Security, that is more than 120% of the national

 

 

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1    unemployment average, as determined by the U.S. Department
2    of Labor, for a period of at least 2 consecutive calendar
3    years preceding the date of the application.
4(Source: P.A. 101-9, eff. 6-5-19; 102-330, eff. 1-1-22.)
 
5    (35 ILCS 10/5-15)
6    Sec. 5-15. Tax Credit Awards. Subject to the conditions
7set forth in this Act, a Taxpayer is entitled to a Credit
8against or, as described in subsection (g) of this Section, a
9payment towards taxes imposed pursuant to subsections (a) and
10(b) of Section 201 of the Illinois Income Tax Act that may be
11imposed on the Taxpayer for a taxable year beginning on or
12after January 1, 1999, if the Taxpayer is awarded a Credit by
13the Department under this Act for that taxable year.
14    (a) The Department shall make Credit awards under this Act
15to foster job creation and retention in Illinois.
16    (b) A person that proposes a project to create new jobs in
17Illinois must enter into an Agreement with the Department for
18the Credit under this Act.
19    (c) The Credit shall be claimed for the taxable years
20specified in the Agreement.
21    (d) The Credit shall not exceed the Incremental Income Tax
22attributable to the project that is the subject of the
23Agreement.
24    (e) Nothing herein shall prohibit a Tax Credit Award to an
25Applicant that uses a PEO if all other award criteria are

 

 

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1satisfied.
2    (f) In lieu of the Credit allowed under this Act against
3the taxes imposed pursuant to subsections (a) and (b) of
4Section 201 of the Illinois Income Tax Act for any taxable year
5ending on or after December 31, 2009, for Taxpayers that
6entered into Agreements prior to January 1, 2015 and otherwise
7meet the criteria set forth in this subsection (f), the
8Taxpayer may elect to claim the Credit against its obligation
9to pay over withholding under Section 704A of the Illinois
10Income Tax Act.
11        (1) The election under this subsection (f) may be made
12    only by a Taxpayer that (i) is primarily engaged in one of
13    the following business activities: water purification and
14    treatment, motor vehicle metal stamping, automobile
15    manufacturing, automobile and light duty motor vehicle
16    manufacturing, motor vehicle manufacturing, light truck
17    and utility vehicle manufacturing, heavy duty truck
18    manufacturing, motor vehicle body manufacturing, cable
19    television infrastructure design or manufacturing, or
20    wireless telecommunication or computing terminal device
21    design or manufacturing for use on public networks and
22    (ii) meets the following criteria:
23            (A) the Taxpayer (i) had an Illinois net loss or an
24        Illinois net loss deduction under Section 207 of the
25        Illinois Income Tax Act for the taxable year in which
26        the Credit is awarded, (ii) employed a minimum of

 

 

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1        1,000 full-time employees in this State during the
2        taxable year in which the Credit is awarded, (iii) has
3        an Agreement under this Act on December 14, 2009 (the
4        effective date of Public Act 96-834), and (iv) is in
5        compliance with all provisions of that Agreement;
6            (B) the Taxpayer (i) had an Illinois net loss or an
7        Illinois net loss deduction under Section 207 of the
8        Illinois Income Tax Act for the taxable year in which
9        the Credit is awarded, (ii) employed a minimum of
10        1,000 full-time employees in this State during the
11        taxable year in which the Credit is awarded, and (iii)
12        has applied for an Agreement within 365 days after
13        December 14, 2009 (the effective date of Public Act
14        96-834);
15            (C) the Taxpayer (i) had an Illinois net operating
16        loss carryforward under Section 207 of the Illinois
17        Income Tax Act in a taxable year ending during
18        calendar year 2008, (ii) has applied for an Agreement
19        within 150 days after the effective date of this
20        amendatory Act of the 96th General Assembly, (iii)
21        creates at least 400 new jobs in Illinois, (iv)
22        retains at least 2,000 jobs in Illinois that would
23        have been at risk of relocation out of Illinois over a
24        10-year period, and (v) makes a capital investment of
25        at least $75,000,000;
26            (D) the Taxpayer (i) had an Illinois net operating

 

 

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1        loss carryforward under Section 207 of the Illinois
2        Income Tax Act in a taxable year ending during
3        calendar year 2009, (ii) has applied for an Agreement
4        within 150 days after the effective date of this
5        amendatory Act of the 96th General Assembly, (iii)
6        creates at least 150 new jobs, (iv) retains at least
7        1,000 jobs in Illinois that would have been at risk of
8        relocation out of Illinois over a 10-year period, and
9        (v) makes a capital investment of at least
10        $57,000,000; or
11            (E) the Taxpayer (i) employed at least 2,500
12        full-time employees in the State during the year in
13        which the Credit is awarded, (ii) commits to make at
14        least $500,000,000 in combined capital improvements
15        and project costs under the Agreement, (iii) applies
16        for an Agreement between January 1, 2011 and June 30,
17        2011, (iv) executes an Agreement for the Credit during
18        calendar year 2011, and (v) was incorporated no more
19        than 5 years before the filing of an application for an
20        Agreement.
21        (1.5) The election under this subsection (f) may also
22    be made by a Taxpayer for any Credit awarded pursuant to an
23    agreement that was executed between January 1, 2011 and
24    June 30, 2011, if the Taxpayer (i) is primarily engaged in
25    the manufacture of inner tubes or tires, or both, from
26    natural and synthetic rubber, (ii) employs a minimum of

 

 

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1    2,400 full-time employees in Illinois at the time of
2    application, (iii) creates at least 350 full-time jobs and
3    retains at least 250 full-time jobs in Illinois that would
4    have been at risk of being created or retained outside of
5    Illinois, and (iv) makes a capital investment of at least
6    $200,000,000 at the project location.
7        (1.6) The election under this subsection (f) may also
8    be made by a Taxpayer for any Credit awarded pursuant to an
9    agreement that was executed within 150 days after the
10    effective date of this amendatory Act of the 97th General
11    Assembly, if the Taxpayer (i) is primarily engaged in the
12    operation of a discount department store, (ii) maintains
13    its corporate headquarters in Illinois, (iii) employs a
14    minimum of 4,250 full-time employees at its corporate
15    headquarters in Illinois at the time of application, (iv)
16    retains at least 4,250 full-time jobs in Illinois that
17    would have been at risk of being relocated outside of
18    Illinois, (v) had a minimum of $40,000,000,000 in total
19    revenue in 2010, and (vi) makes a capital investment of at
20    least $300,000,000 at the project location.
21        (1.7) Notwithstanding any other provision of law, the
22    election under this subsection (f) may also be made by a
23    Taxpayer for any Credit awarded pursuant to an agreement
24    that was executed or applied for on or after July 1, 2011
25    and on or before March 31, 2012, if the Taxpayer is
26    primarily engaged in the manufacture of original and

 

 

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1    aftermarket filtration parts and products for automobiles,
2    motor vehicles, light duty motor vehicles, light trucks
3    and utility vehicles, and heavy duty trucks, (ii) employs
4    a minimum of 1,000 full-time employees in Illinois at the
5    time of application, (iii) creates at least 250 full-time
6    jobs in Illinois, (iv) relocates its corporate
7    headquarters to Illinois from another state, and (v) makes
8    a capital investment of at least $4,000,000 at the project
9    location.
10        (1.8) Notwithstanding any other provision of law, the
11    election under this subsection (f) may also be made by a
12    startup taxpayer for any Credit awarded pursuant to an
13    Agreement that was executed or applied for on or after the
14    effective date of this amendatory Act of the 102nd General
15    Assembly, if the startup taxpayer, without considering any
16    Related Member or other investor, (i) has never had any
17    Illinois income tax liability and (ii) was incorporated no
18    more than 5 years before the filing of an application for
19    an Agreement. Any such election under this paragraph (1.8)
20    shall be effective unless and until such startup taxpayer
21    has any Illinois income tax liability. This election under
22    this paragraph (1.8) shall automatically terminate when
23    the startup taxpayer has any Illinois income tax liability
24    at the end of any taxable year during the term of the
25    Agreement. Thereafter, the startup taxpayer may receive a
26    Credit, taking into account any benefits previously

 

 

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1    enjoyed or received by way of the election under this
2    paragraph (1.8), so long as the startup taxpayer remains
3    in compliance with the terms and conditions of the
4    Agreement.
5        (2) An election under this subsection shall allow the
6    credit to be taken against payments otherwise due under
7    Section 704A of the Illinois Income Tax Act during the
8    first calendar year beginning after the end of the taxable
9    year in which the credit is awarded under this Act.
10        (3) The election shall be made in the form and manner
11    required by the Illinois Department of Revenue and, once
12    made, shall be irrevocable.
13        (4) If a Taxpayer who meets the requirements of
14    subparagraph (A) of paragraph (1) of this subsection (f)
15    elects to claim the Credit against its withholdings as
16    provided in this subsection (f), then, on and after the
17    date of the election, the terms of the Agreement between
18    the Taxpayer and the Department may not be further amended
19    during the term of the Agreement.
20    (g) A pass-through entity that has been awarded a credit
21under this Act, its shareholders, or its partners may treat
22some or all of the credit awarded pursuant to this Act as a tax
23payment for purposes of the Illinois Income Tax Act. The term
24"tax payment" means a payment as described in Article 6 or
25Article 8 of the Illinois Income Tax Act or a composite payment
26made by a pass-through entity on behalf of any of its

 

 

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1shareholders or partners to satisfy such shareholders' or
2partners' taxes imposed pursuant to subsections (a) and (b) of
3Section 201 of the Illinois Income Tax Act. In no event shall
4the amount of the award credited pursuant to this Act exceed
5the Illinois income tax liability of the pass-through entity
6or its shareholders or partners for the taxable year.
7(Source: P.A. 100-511, eff. 9-18-17.)
 
8    (35 ILCS 10/5-20)
9    Sec. 5-20. Application for a project to create and retain
10new jobs.
11    (a) Any Taxpayer proposing a project located or planned to
12be located in Illinois may request consideration for
13designation of its project, by formal written letter of
14request or by formal application to the Department, in which
15the Applicant states its intent to make at least a specified
16level of investment and intends to hire or retain a specified
17number of full-time employees at a designated location in
18Illinois. As circumstances require, the Department may require
19a formal application from an Applicant and a formal letter of
20request for assistance.
21    (b) In order to qualify for Credits under this Act, an
22Applicant's project must:
23        (1) if the Applicant has more than 100 employees,
24    involve an investment of at least $2,500,000 in capital
25    improvements to be placed in service within the State as a

 

 

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1    direct result of the project; if the Applicant has 100 or
2    fewer employees, then there is no capital investment
3    requirement;
4        (1.5) if the Applicant has more than 100 employees,
5    employ a number of new employees in the State equal to the
6    lesser of (A) 10% of the number of full-time employees
7    employed by the applicant world-wide on the date the
8    application is filed with the Department or (B) 50 New
9    Employees; and, if the Applicant has 100 or fewer
10    employees, employ a number of new employees in the State
11    equal to the lesser of (A) 5% of the number of full-time
12    employees employed by the applicant world-wide on the date
13    the application is filed with the Department or (B) 50 New
14    Employees;
15        (1.6) if the Applicant is a startup taxpayer, the
16    employees employed by Related Members shall not be
17    attributed to the Applicant for purposes of determining
18    the capital investment or job creation requirements under
19    this subsection (b);
20        (2) (blank);
21        (3) (blank); and
22        (4) include an annual sexual harassment policy report
23    as provided under Section 5-58.
24    (c) After receipt of an application, the Department may
25enter into an Agreement with the Applicant if the application
26is accepted in accordance with Section 5-25.

 

 

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1(Source: P.A. 100-511, eff. 9-18-17; 100-698, eff. 1-1-19;
2101-81, eff. 7-12-19.)
 
3    (35 ILCS 10/5-77)
4    Sec. 5-77. Sunset of new Agreements. The Department shall
5not enter into any new Agreements under the provisions of
6Section 5-50 of this Act after June 30, 2027 June 30, 2022.
7(Source: P.A. 99-925, eff. 1-20-17; 100-511, eff. 9-18-17.)
 
8    Section 5-10. The River Edge Redevelopment Zone Act is
9amended by changing Section 10-3 as follows:
 
10    (65 ILCS 115/10-3)
11    Sec. 10-3. Definitions. As used in this Act:
12    "Department" means the Department of Commerce and Economic
13Opportunity.
14    "River Edge Redevelopment Zone" means an area of the State
15certified by the Department as a River Edge Redevelopment Zone
16pursuant to this Act.
17    "Designated zone organization" means an association or
18entity: (1) the members of which are substantially all
19residents of the River Edge Redevelopment Zone or of the
20municipality in which the River Edge Redevelopment Zone is
21located; (2) the board of directors of which is elected by the
22members of the organization; (3) that satisfies the criteria
23set forth in Section 501(c) (3) or 501(c) (4) of the Internal

 

 

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1Revenue Code; and (4) that exists primarily for the purpose of
2performing within the zone, for the benefit of the residents
3and businesses thereof, any of the functions set forth in
4Section 8 of this Act.
5    "Incremental income tax" means the total amount withheld
6during the taxable year from the compensation of River Edge
7Construction Jobs Employees.
8    "Agency" means: each officer, board, commission, and
9agency created by the Constitution, in the executive branch of
10State government, other than the State Board of Elections;
11each officer, department, board, commission, agency,
12institution, authority, university, and body politic and
13corporate of the State; each administrative unit or corporate
14outgrowth of the State government that is created by or
15pursuant to statute, other than units of local government and
16their officers, school districts, and boards of election
17commissioners; and each administrative unit or corporate
18outgrowth of the above and as may be created by executive order
19of the Governor. No entity is an "agency" for the purposes of
20this Act unless the entity is authorized by law to make rules
21or regulations.
22    "River Edge construction jobs credit" means an amount
23equal to 50% of the incremental income tax attributable to
24River Edge construction employees employed on a River Edge
25construction jobs project. However, the amount may equal 75%
26of the incremental income tax attributable to River Edge

 

 

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1construction employees employed on a River Edge construction
2jobs project located in an underserved area. The total
3aggregate amount of credits awarded under the Blue Collar Jobs
4Act (Article 20 of this amendatory Act of the 101st General
5Assembly) shall not exceed $20,000,000 in any State fiscal
6year.
7    "River Edge construction jobs employee" means a laborer or
8worker who is employed by an Illinois contractor or
9subcontractor in the actual construction work on the site of a
10River Edge construction jobs project.
11    "River Edge construction jobs project" means building a
12structure or building, or making improvements of any kind to
13real property, in a River Edge Redevelopment Zone that is
14built or improved in the course of completing a qualified
15rehabilitation plan. "River Edge construction jobs project"
16does not include the routine operation, routine repair, or
17routine maintenance of existing structures, buildings, or real
18property.
19    "Rule" means each agency statement of general
20applicability that implements, applies, interprets, or
21prescribes law or policy, but does not include (i) statements
22concerning only the internal management of an agency and not
23affecting private rights or procedures available to persons or
24entities outside the agency, (ii) intra-agency memoranda, or
25(iii) the prescription of standardized forms.
26    Until July 1, 2022, "underserved "Underserved area" means

 

 

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1a geographic area that meets one or more of the following
2conditions:
3        (1) the area has a poverty rate of at least 20%
4    according to the latest federal decennial census;
5        (2) 75% or more of the children in the area
6    participate in the federal free lunch program according to
7    reported statistics from the State Board of Education;
8        (3) at least 20% of the households in the area receive
9    assistance under the Supplemental Nutrition Assistance
10    Program (SNAP); or
11        (4) the area has an average unemployment rate, as
12    determined by the Illinois Department of Employment
13    Security, that is more than 120% of the national
14    unemployment average, as determined by the U.S. Department
15    of Labor, for a period of at least 2 consecutive calendar
16    years preceding the date of the application.
17    Beginning July 1, 2022, "Underserved area" means a
18geographic area that meets one or more of the following
19conditions:
20        (1) the area has a poverty rate of at least 20%
21    according to the latest American Community Survey;
22        (2) 35% or more of the families with children in the
23    area are living below 130% of the poverty line, according
24    to the latest American Community Survey;
25        (3) at least 20% of the households in the area receive
26    assistance under the Supplemental Nutrition Assistance

 

 

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1    Program (SNAP); or
2        (4) the area has an average unemployment rate, as
3    determined by the Illinois Department of Employment
4    Security, that is more than 120% of the national
5    unemployment average, as determined by the U.S. Department
6    of Labor, for a period of at least 2 consecutive calendar
7    years preceding the date of the application.
8(Source: P.A. 101-9, eff. 6-5-19.)
 
9
ARTICLE 10. FILM PRODUCTION TAX CREDIT

 
10    Section 10-5. The Illinois Income Tax Act is amended by
11changing Section 213 as follows:
 
12    (35 ILCS 5/213)
13    Sec. 213. Film production services credit. For tax years
14beginning on or after January 1, 2004, a taxpayer who has been
15awarded a tax credit under the Film Production Services Tax
16Credit Act or under the Film Production Services Tax Credit
17Act of 2008 is entitled to a credit against the taxes imposed
18under subsections (a) and (b) of Section 201 of this Act in an
19amount determined by the Department of Commerce and Economic
20Opportunity under those Acts. If the taxpayer is a partnership
21or Subchapter S corporation, the credit is allowed to the
22partners or shareholders in accordance with the determination
23of income and distributive share of income under Sections 702

 

 

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1and 704 and Subchapter S of the Internal Revenue Code.
2    A transfer of this credit may be made by the taxpayer
3earning the credit within one year after the credit is awarded
4in accordance with rules adopted by the Department of Commerce
5and Economic Opportunity. Beginning July 1, 2023, if a credit
6is transferred under this Section by the taxpayer, then the
7transferor taxpayer shall pay to the Department of Commerce
8and Economic Opportunity, upon notification of a transfer, a
9fee equal to 2.5% of the transferred credit amount eligible
10for nonresident wages, as described in Section 10 of the Film
11Production Services Tax Credit Act of 2008, and an additional
12fee of 0.25% of the total amount of the transferred credit that
13is not calculated on nonresident wages, which shall be
14deposited into the Illinois Production Workforce Development
15Fund.
16    The Department, in cooperation with the Department of
17Commerce and Economic Opportunity, must prescribe rules to
18enforce and administer the provisions of this Section. This
19Section is exempt from the provisions of Section 250 of this
20Act.
21    The credit may not be carried back. If the amount of the
22credit exceeds the tax liability for the year, the excess may
23be carried forward and applied to the tax liability of the 5
24taxable years following the excess credit year. The credit
25shall be applied to the earliest year for which there is a tax
26liability. If there are credits from more than one tax year

 

 

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1that are available to offset a liability, the earlier credit
2shall be applied first. In no event shall a credit under this
3Section reduce the taxpayer's liability to less than zero.
4(Source: P.A. 94-171, eff. 7-11-05; 95-720, eff. 5-27-08.)
 
5    Section 10-10. The Film Production Services Tax Credit Act
6of 2008 is amended by changing Sections 10 and 42 and by adding
7Section 46 as follows:
 
8    (35 ILCS 16/10)
9    Sec. 10. Definitions. As used in this Act:
10    "Accredited production" means: (i) for productions
11commencing before May 1, 2006, a film, video, or television
12production that has been certified by the Department in which
13the aggregate Illinois labor expenditures included in the cost
14of the production, in the period that ends 12 months after the
15time principal filming or taping of the production began,
16exceed $100,000 for productions of 30 minutes or longer, or
17$50,000 for productions of less than 30 minutes; and (ii) for
18productions commencing on or after May 1, 2006, a film, video,
19or television production that has been certified by the
20Department in which the Illinois production spending included
21in the cost of production in the period that ends 12 months
22after the time principal filming or taping of the production
23began exceeds $100,000 for productions of 30 minutes or longer
24or exceeds $50,000 for productions of less than 30 minutes.

 

 

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1"Accredited production" does not include a production that:
2        (1) is news, current events, or public programming, or
3    a program that includes weather or market reports;
4        (2) is a talk show;
5        (3) is a production in respect of a game,
6    questionnaire, or contest;
7        (4) is a sports event or activity;
8        (5) is a gala presentation or awards show;
9        (6) is a finished production that solicits funds;
10        (7) is a production produced by a film production
11    company if records, as required by 18 U.S.C. 2257, are to
12    be maintained by that film production company with respect
13    to any performer portrayed in that single media or
14    multimedia program; or
15        (8) is a production produced primarily for industrial,
16    corporate, or institutional purposes.
17    "Accredited animated production" means an accredited
18production in which movement and characters' performances are
19created using a frame-by-frame technique and a significant
20number of major characters are animated. Motion capture by
21itself is not an animation technique.
22    "Accredited production certificate" means a certificate
23issued by the Department certifying that the production is an
24accredited production that meets the guidelines of this Act.
25    "Applicant" means a taxpayer that is a film production
26company that is operating or has operated an accredited

 

 

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1production located within the State of Illinois and that (i)
2owns the copyright in the accredited production throughout the
3Illinois production period or (ii) has contracted directly
4with the owner of the copyright in the accredited production
5or a person acting on behalf of the owner to provide services
6for the production, where the owner of the copyright is not an
7eligible production corporation.
8    "Credit" means:
9        (1) for an accredited production approved by the
10    Department on or before January 1, 2005 and commencing
11    before May 1, 2006, the amount equal to 25% of the Illinois
12    labor expenditure approved by the Department. The
13    applicant is deemed to have paid, on its balance due day
14    for the year, an amount equal to 25% of its qualified
15    Illinois labor expenditure for the tax year. For Illinois
16    labor expenditures generated by the employment of
17    residents of geographic areas of high poverty or high
18    unemployment, as determined by the Department, in an
19    accredited production commencing before May 1, 2006 and
20    approved by the Department after January 1, 2005, the
21    applicant shall receive an enhanced credit of 10% in
22    addition to the 25% credit; and
23        (2) for an accredited production commencing on or
24    after May 1, 2006, the amount equal to:
25            (i) 20% of the Illinois production spending for
26        the taxable year; plus

 

 

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1            (ii) 15% of the Illinois labor expenditures
2        generated by the employment of residents of geographic
3        areas of high poverty or high unemployment, as
4        determined by the Department; and
5        (3) for an accredited production commencing on or
6    after January 1, 2009, the amount equal to:
7            (i) 30% of the Illinois production spending for
8        the taxable year; plus
9            (ii) 15% of the Illinois labor expenditures
10        generated by the employment of residents of geographic
11        areas of high poverty or high unemployment, as
12        determined by the Department.
13    "Department" means the Department of Commerce and Economic
14Opportunity.
15    "Director" means the Director of Commerce and Economic
16Opportunity.
17    "Illinois labor expenditure" means salary or wages paid to
18employees of the applicant for services on the accredited
19production.
20    To qualify as an Illinois labor expenditure, the
21expenditure must be:
22        (1) Reasonable in the circumstances.
23        (2) Included in the federal income tax basis of the
24    property.
25        (3) Incurred by the applicant for services on or after
26    January 1, 2004.

 

 

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1        (4) Incurred for the production stages of the
2    accredited production, from the final script stage to the
3    end of the post-production stage.
4        (5) Limited to the first $25,000 of wages paid or
5    incurred to each employee of a production commencing
6    before May 1, 2006 and the first $100,000 of wages paid or
7    incurred to each employee of a production commencing on or
8    after May 1, 2006 and prior to July 1, 2022. For
9    productions commencing on or after July 1, 2022, limited
10    to the first $500,000 of wages paid or incurred to each
11    nonresident or resident employee of a production company
12    or loan out company that provides in-State services to a
13    production, whether those wages are paid or incurred by
14    the production company, loan out company, or both, subject
15    to withholding payments provided for in Article 7 of the
16    Illinois Income Tax Act. For purposes of calculating
17    Illinois labor expenditures for a television series, the
18    nonresident wage limitations provided under this
19    subparagraph are applied to the entire season.
20        (6) For a production commencing before May 1, 2006,
21    exclusive of the salary or wages paid to or incurred for
22    the 2 highest paid employees of the production.
23        (7) Directly attributable to the accredited
24    production.
25        (8) (Blank).
26        (9) Prior to July 1, 2022, paid Paid to persons

 

 

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1    resident in Illinois at the time the payments were made.
2    For a production commencing on or after July 1, 2022, paid
3    to persons resident in Illinois and nonresidents at the
4    time the payments were made. For purposes of this
5    subparagraph, only wages paid to nonresidents working in
6    the following positions shall be considered Illinois labor
7    expenditures: Writer, Director, Director of Photography,
8    Production Designer, Costume Designer, Production
9    Accountant, VFX Supervisor, Editor, Composer, and Actor,
10    subject to the limitations set forth under this
11    subparagraph. For an accredited Illinois production
12    spending of $25,000,000 or less, no more than 2
13    nonresident actors' wages shall qualify as an Illinois
14    labor expenditure. For an accredited production with
15    Illinois production spending of more than $25,000,000, no
16    more than 4 nonresident actor's wages shall qualify as
17    Illinois labor expenditures.
18        (10) Paid for services rendered in Illinois.
19    "Illinois production spending" means the expenses incurred
20by the applicant for an accredited production, including,
21without limitation, all of the following:
22        (1) expenses to purchase, from vendors within
23    Illinois, tangible personal property that is used in the
24    accredited production;
25        (2) expenses to acquire services, from vendors in
26    Illinois, for film production, editing, or processing; and

 

 

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1        (3) for a production commencing before July 1, 2022,
2    the compensation, not to exceed $100,000 for any one
3    employee, for contractual or salaried employees who are
4    Illinois residents performing services with respect to the
5    accredited production. For a production commencing on or
6    after July 1, 2022, the compensation, not to exceed
7    $500,000 for any one employee, for contractual or salaried
8    employees who are Illinois residents or nonresident
9    employees, subject to the limitations set forth under
10    Section 10 of this Act.
11    "Loan out company" means a personal service corporation or
12other entity that is under contract with the taxpayer to
13provide specified individual personnel, such as artists, crew,
14actors, producers, or directors for the performance of
15services used directly in a production. "Loan out company"
16does not include entities contracted with by the taxpayer to
17provide goods or ancillary contractor services such as
18catering, construction, trailers, equipment, or
19transportation.
20    "Qualified production facility" means stage facilities in
21the State in which television shows and films are or are
22intended to be regularly produced and that contain at least
23one sound stage of at least 15,000 square feet.
24    Rulemaking authority to implement Public Act 95-1006, if
25any, is conditioned on the rules being adopted in accordance
26with all provisions of the Illinois Administrative Procedure

 

 

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1Act and all rules and procedures of the Joint Committee on
2Administrative Rules; any purported rule not so adopted, for
3whatever reason, is unauthorized.
4(Source: P.A. 102-558, eff. 8-20-21.)
 
5    (35 ILCS 16/42)
6    Sec. 42. Sunset of credits. The application of credits
7awarded pursuant to this Act shall be limited by a reasonable
8and appropriate sunset date. A taxpayer shall not be awarded
9any new credits entitled to take a credit awarded pursuant to
10this Act for tax years beginning on or after January 1, 2027.
11(Source: P.A. 101-178, eff. 8-1-19.)
 
12    (35 ILCS 16/46 new)
13    Sec. 46. Illinois Production Workforce Development Fund.
14    (a) The Illinois Production Workforce Development Fund is
15created as a special fund in the State Treasury. Beginning
16July 1, 2022, amounts paid to the Department of Commerce and
17Economic Opportunity pursuant to Section 213 of the Illinois
18Income Tax Act shall be deposited into the Fund. The Fund shall
19be used exclusively to provide grants to community-based
20organizations, labor organizations, private and public
21universities, community colleges, and other organizations and
22institutions that may be deemed appropriate by the Department
23to administer workforce training programs that support efforts
24to recruit, hire, promote, retain, develop, and train a

 

 

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1diverse and inclusive workforce in the film industry.
2    (b) Pursuant to Section 213 of the Illinois Income Tax
3Act, the Fund shall receive deposits in amounts not to exceed
40.25% of the amount of each credit certificate issued that is
5not calculated on out-of-state wages and transferred or
6claimed on an Illinois tax return in the quarter such credit
7was transferred or claimed. In addition, such amount shall
8also include 2.5% of the credit amount calculated on wages
9paid to nonresidents that is transferred or claimed on an
10Illinois tax return in the quarter such credit was transferred
11or claimed.
12    (c) At the request of the Department, the State
13Comptroller and the State Treasurer may advance amounts to the
14Fund on an annual basis not to exceed $1,000,000 in any fiscal
15year. The fund from which the moneys are advanced shall be
16reimbursed in the same fiscal year for any such advance
17payments as described in this Section. The method of
18reimbursement shall be set forth in rules.
19    (d) Of the appropriated funds in a given fiscal year, 50%
20of the appropriated funds shall be reserved for organizations
21that meet one of the following criteria. The organization is:
22(1) a minority-owned business, as defined by the Business
23Enterprise for Minorities, Women, and Persons with
24Disabilities Act; (2) located in an underserved area, as
25defined by the Economic Development for a Growing Economy Tax
26Credit Act; or (3) on an annual basis, training a cohort of

 

 

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1program participants where at least 50% of the program
2participants are either a minority person, as defined by the
3Business Enterprise for Minorities, Women, and Persons with
4Disabilities Act, or reside in an underserved area, as defined
5by the Economic Development for a Growing Economy Tax Credit
6Act.
7    (e) The Illinois Production Workforce Development Fund
8shall be administered by the Department. The Department may
9adopt rules necessary to administer the provisions of this
10Section.
11    (f) Notwithstanding any other law to the contrary, the
12Illinois Production Workforce Development Fund is not subject
13to sweeps, administrative charge-backs, or any other fiscal or
14budgetary maneuver that would in any way transfer any amounts
15from the Illinois Production Workforce Development Fund.
16    (g) By June 30 of each fiscal year, the Department must
17submit to the General Assembly a report that includes the
18following information: (1) an identification of the
19organizations and institutions that received funding to
20administer workforce training programs during the fiscal year;
21(2) the number of total persons trained and the number of
22persons trained per workforce training program in the fiscal
23year; and (3) in the aggregate, per organization, the number
24of persons identified as a minority person or that reside in an
25underserved area that received training in the fiscal year.
 

 

 

SB0157 Enrolled- 35 -LRB102 10128 HLH 16591 b

1    Section 10-90. The State Finance Act is amended by adding
2Section 5.970 as follows:
 
3    (30 ILCS 105/5.970 new)
4    Sec. 5.970. The Illinois Production Workforce Development
5Fund.
 
6
ARTICLE 15. LIVE THEATER TAX CREDIT

 
7    Section 15-5. The Live Theater Production Tax Credit Act
8is amended by changing Section 10-20 as follows:
 
9    (35 ILCS 17/10-20)
10    Sec. 10-20. Tax credit award. Subject to the conditions
11set forth in this Act, an applicant is entitled to a tax credit
12award as approved by the Department for qualifying Illinois
13labor expenditures and Illinois production spending for each
14tax year in which the applicant is awarded an accredited
15theater production certificate issued by the Department. The
16amount of tax credits awarded pursuant to this Act shall not
17exceed $2,000,000 for State fiscal years ending on or before
18June 30, 2022 and ending on or after June 30, 2024. Due to the
19impact of the COVID-19 pandemic, for the State fiscal year
20ending on June 30, 2023, the amount of tax credits awarded
21pursuant to this Act shall not exceed $4,000,000. For the
22State fiscal year ending on June 30, 2023, credits awarded

 

 

SB0157 Enrolled- 36 -LRB102 10128 HLH 16591 b

1under this Act in excess of $2,000,000 must be awarded to
2applicants with Illinois production spending of not less than
3$2,500,000, as shown on the applicant's application for the
4credit. in any fiscal year. Credits shall be awarded on a
5first-come, first-served basis. Notwithstanding the foregoing,
6if the amount of credits applied for in any fiscal year exceeds
7the amount authorized to be awarded under this Section, the
8excess credit amount shall be awarded in the next fiscal year
9in which credits remain available for award and shall be
10treated as having been applied for on the first day of that
11fiscal year.
12(Source: P.A. 97-636, eff. 6-1-12.)
 
13
ARTICLE 20. BIODIESEL

 
14    Section 20-5. The Use Tax Act is amended by changing
15Sections 3-10 and 3-41 and by adding Sections 3-5.1 and 3-42.5
16as follows:
 
17    (35 ILCS 105/3-5.1 new)
18    Sec. 3-5.1. Biodiesel, renewable diesel, and biodiesel
19blends.
20    (a) On and after January 1, 2024 and on or before December
2131, 2030, the taxes imposed by this Act, the Service Use Tax
22Act, the Service Occupation Tax Act, or the Retailers'
23Occupation Tax Act apply to 100% of the proceeds of sales of

 

 

SB0157 Enrolled- 37 -LRB102 10128 HLH 16591 b

1(i) biodiesel blends with no less than 1% and no more than 10%
2of biodiesel and (ii) any diesel fuel containing no less than
31% and no more than 10% of renewable diesel.
4    (b) From January 1, 2024 through March 31, 2024, the taxes
5imposed by this Act, the Service Use Tax Act, the Service
6Occupation Tax Act, or the Retailers' Occupation Tax Act do
7not apply to the proceeds of sales of any diesel fuel
8containing more than 10% biodiesel or renewable diesel.
9    (c) From April 1, 2024 through November 30, 2024, the
10taxes imposed by this Act, the Service Use Tax Act, the Service
11Occupation Tax Act, or the Retailers' Occupation Tax Act do
12not apply to the proceeds of sales of any diesel fuel
13containing more than 13% biodiesel or renewable diesel.
14    (d) From December 1, 2024 through March 31, 2025, the
15taxes imposed by this Act, the Service Use Tax Act, the Service
16Occupation Tax Act, or the Retailers' Occupation Tax Act do
17not apply to the proceeds of sales of any diesel fuel
18containing more than 10% biodiesel or renewable diesel.
19    (e) From April 1, 2025 through November 30, 2025, the
20taxes imposed by this Act, the Service Use Tax Act, the Service
21Occupation Tax Act, or the Retailers' Occupation Tax Act do
22not apply to the proceeds of sales of any diesel fuel
23containing more than 16% biodiesel or renewable diesel.
24    (f) From December 1, 2025 through March 31, 2026, the
25taxes imposed by this Act, the Service Use Tax Act, the Service
26Occupation Tax Act, or the Retailers' Occupation Tax Act do

 

 

SB0157 Enrolled- 38 -LRB102 10128 HLH 16591 b

1not apply to the proceeds of sales of any diesel fuel
2containing more than 10% biodiesel or renewable diesel.
3    (g) On and after April 1, 2026 and on or before November
430, 2030, the taxes imposed by this Act, the Service Use Tax
5Act, the Service Occupation Tax Act, or the Retailers'
6Occupation Tax Act do not apply to the proceeds of sales of any
7diesel fuel containing more than 19% biodiesel or renewable
8diesel; except that, from December 1 of calendar years 2026,
92027, 2028, and 2029 through March 31 of the following
10calendar year, and from December 1, 2030 through December 31,
112030, the taxes imposed by this Act, the Service Use Tax Act,
12the Service Occupation Tax Act, or the Retailers' Occupation
13Tax Act do not apply to the proceeds of sales of any diesel
14fuel containing more than 10% biodiesel or renewable diesel.
15    (h) This Section is exempt from the provisions of Section
163-90 of this Act, Section 3-75 of the Service Use Tax Act,
17Section 3-55 of the Service Occupation Tax Act, and Section
182-70 of the Retailers' Occupation Tax Act.
 
19    (35 ILCS 105/3-10)
20    Sec. 3-10. Rate of tax. Unless otherwise provided in this
21Section, the tax imposed by this Act is at the rate of 6.25% of
22either the selling price or the fair market value, if any, of
23the tangible personal property. In all cases where property
24functionally used or consumed is the same as the property that
25was purchased at retail, then the tax is imposed on the selling

 

 

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1price of the property. In all cases where property
2functionally used or consumed is a by-product or waste product
3that has been refined, manufactured, or produced from property
4purchased at retail, then the tax is imposed on the lower of
5the fair market value, if any, of the specific property so used
6in this State or on the selling price of the property purchased
7at retail. For purposes of this Section "fair market value"
8means the price at which property would change hands between a
9willing buyer and a willing seller, neither being under any
10compulsion to buy or sell and both having reasonable knowledge
11of the relevant facts. The fair market value shall be
12established by Illinois sales by the taxpayer of the same
13property as that functionally used or consumed, or if there
14are no such sales by the taxpayer, then comparable sales or
15purchases of property of like kind and character in Illinois.
16    Beginning on July 1, 2000 and through December 31, 2000,
17with respect to motor fuel, as defined in Section 1.1 of the
18Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
19the Use Tax Act, the tax is imposed at the rate of 1.25%.
20    Beginning on August 6, 2010 through August 15, 2010, with
21respect to sales tax holiday items as defined in Section 3-6 of
22this Act, the tax is imposed at the rate of 1.25%.
23    With respect to gasohol, the tax imposed by this Act
24applies to (i) 70% of the proceeds of sales made on or after
25January 1, 1990, and before July 1, 2003, (ii) 80% of the
26proceeds of sales made on or after July 1, 2003 and on or

 

 

SB0157 Enrolled- 40 -LRB102 10128 HLH 16591 b

1before July 1, 2017, and (iii) 100% of the proceeds of sales
2made thereafter. If, at any time, however, the tax under this
3Act on sales of gasohol is imposed at the rate of 1.25%, then
4the tax imposed by this Act applies to 100% of the proceeds of
5sales of gasohol made during that time.
6    With respect to majority blended ethanol fuel, the tax
7imposed by this Act does not apply to the proceeds of sales
8made on or after July 1, 2003 and on or before December 31,
92023 but applies to 100% of the proceeds of sales made
10thereafter.
11    With respect to biodiesel blends with no less than 1% and
12no more than 10% biodiesel, the tax imposed by this Act applies
13to (i) 80% of the proceeds of sales made on or after July 1,
142003 and on or before December 31, 2018 and (ii) 100% of the
15proceeds of sales made after December 31, 2018 and before
16January 1, 2024. On and after January 1, 2024 and on or before
17December 31, 2030, the taxation of biodiesel, renewable
18diesel, and biodiesel blends shall be as provided in Section
193-5.1 thereafter. If, at any time, however, the tax under this
20Act on sales of biodiesel blends with no less than 1% and no
21more than 10% biodiesel is imposed at the rate of 1.25%, then
22the tax imposed by this Act applies to 100% of the proceeds of
23sales of biodiesel blends with no less than 1% and no more than
2410% biodiesel made during that time.
25    With respect to 100% biodiesel and biodiesel blends with
26more than 10% but no more than 99% biodiesel, the tax imposed

 

 

SB0157 Enrolled- 41 -LRB102 10128 HLH 16591 b

1by this Act does not apply to the proceeds of sales made on or
2after July 1, 2003 and on or before December 31, 2023 but
3applies to 100% of the proceeds of sales made thereafter. On
4and after January 1, 2024 and on or before December 31, 2030,
5the taxation of biodiesel, renewable diesel, and biodiesel
6blends shall be as provided in Section 3-5.1.
7    With respect to food for human consumption that is to be
8consumed off the premises where it is sold (other than
9alcoholic beverages, food consisting of or infused with adult
10use cannabis, soft drinks, and food that has been prepared for
11immediate consumption) and prescription and nonprescription
12medicines, drugs, medical appliances, products classified as
13Class III medical devices by the United States Food and Drug
14Administration that are used for cancer treatment pursuant to
15a prescription, as well as any accessories and components
16related to those devices, modifications to a motor vehicle for
17the purpose of rendering it usable by a person with a
18disability, and insulin, blood sugar testing materials,
19syringes, and needles used by human diabetics, the tax is
20imposed at the rate of 1%. For the purposes of this Section,
21until September 1, 2009: the term "soft drinks" means any
22complete, finished, ready-to-use, non-alcoholic drink, whether
23carbonated or not, including but not limited to soda water,
24cola, fruit juice, vegetable juice, carbonated water, and all
25other preparations commonly known as soft drinks of whatever
26kind or description that are contained in any closed or sealed

 

 

SB0157 Enrolled- 42 -LRB102 10128 HLH 16591 b

1bottle, can, carton, or container, regardless of size; but
2"soft drinks" does not include coffee, tea, non-carbonated
3water, infant formula, milk or milk products as defined in the
4Grade A Pasteurized Milk and Milk Products Act, or drinks
5containing 50% or more natural fruit or vegetable juice.
6    Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "soft drinks" means non-alcoholic
8beverages that contain natural or artificial sweeteners. "Soft
9drinks" do not include beverages that contain milk or milk
10products, soy, rice or similar milk substitutes, or greater
11than 50% of vegetable or fruit juice by volume.
12    Until August 1, 2009, and notwithstanding any other
13provisions of this Act, "food for human consumption that is to
14be consumed off the premises where it is sold" includes all
15food sold through a vending machine, except soft drinks and
16food products that are dispensed hot from a vending machine,
17regardless of the location of the vending machine. Beginning
18August 1, 2009, and notwithstanding any other provisions of
19this Act, "food for human consumption that is to be consumed
20off the premises where it is sold" includes all food sold
21through a vending machine, except soft drinks, candy, and food
22products that are dispensed hot from a vending machine,
23regardless of the location of the vending machine.
24    Notwithstanding any other provisions of this Act,
25beginning September 1, 2009, "food for human consumption that
26is to be consumed off the premises where it is sold" does not

 

 

SB0157 Enrolled- 43 -LRB102 10128 HLH 16591 b

1include candy. For purposes of this Section, "candy" means a
2preparation of sugar, honey, or other natural or artificial
3sweeteners in combination with chocolate, fruits, nuts or
4other ingredients or flavorings in the form of bars, drops, or
5pieces. "Candy" does not include any preparation that contains
6flour or requires refrigeration.
7    Notwithstanding any other provisions of this Act,
8beginning September 1, 2009, "nonprescription medicines and
9drugs" does not include grooming and hygiene products. For
10purposes of this Section, "grooming and hygiene products"
11includes, but is not limited to, soaps and cleaning solutions,
12shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
13lotions and screens, unless those products are available by
14prescription only, regardless of whether the products meet the
15definition of "over-the-counter-drugs". For the purposes of
16this paragraph, "over-the-counter-drug" means a drug for human
17use that contains a label that identifies the product as a drug
18as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
19label includes:
20        (A) A "Drug Facts" panel; or
21        (B) A statement of the "active ingredient(s)" with a
22    list of those ingredients contained in the compound,
23    substance or preparation.
24    Beginning on the effective date of this amendatory Act of
25the 98th General Assembly, "prescription and nonprescription
26medicines and drugs" includes medical cannabis purchased from

 

 

SB0157 Enrolled- 44 -LRB102 10128 HLH 16591 b

1a registered dispensing organization under the Compassionate
2Use of Medical Cannabis Program Act.
3    As used in this Section, "adult use cannabis" means
4cannabis subject to tax under the Cannabis Cultivation
5Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
6and does not include cannabis subject to tax under the
7Compassionate Use of Medical Cannabis Program Act.
8    If the property that is purchased at retail from a
9retailer is acquired outside Illinois and used outside
10Illinois before being brought to Illinois for use here and is
11taxable under this Act, the "selling price" on which the tax is
12computed shall be reduced by an amount that represents a
13reasonable allowance for depreciation for the period of prior
14out-of-state use.
15(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
16102-4, eff. 4-27-21.)
 
17    (35 ILCS 105/3-41)
18    Sec. 3-41. Biodiesel. "Biodiesel" means a renewable diesel
19fuel that is not a hydrocarbon fuel and that is derived from
20biomass that is intended for use in diesel engines.
21(Source: P.A. 93-17, eff. 6-11-03.)
 
22    (35 ILCS 105/3-42.5 new)
23    Sec. 3-42.5. Renewable diesel. "Renewable diesel" means a
24diesel fuel that is a hydrocarbon fuel derived from biomass

 

 

SB0157 Enrolled- 45 -LRB102 10128 HLH 16591 b

1meeting the requirements of the latest version of ASTM
2standards D975 or D396. Fuels that have been co-processed are
3not considered renewable diesel.
 
4    Section 20-10. The Service Use Tax Act is amended by
5changing Section 3-10 as follows:
 
6    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
7    Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9the selling price of tangible personal property transferred as
10an incident to the sale of service, but, for the purpose of
11computing this tax, in no event shall the selling price be less
12than the cost price of the property to the serviceman.
13    Beginning on July 1, 2000 and through December 31, 2000,
14with respect to motor fuel, as defined in Section 1.1 of the
15Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
16the Use Tax Act, the tax is imposed at the rate of 1.25%.
17    With respect to gasohol, as defined in the Use Tax Act, the
18tax imposed by this Act applies to (i) 70% of the selling price
19of property transferred as an incident to the sale of service
20on or after January 1, 1990, and before July 1, 2003, (ii) 80%
21of the selling price of property transferred as an incident to
22the sale of service on or after July 1, 2003 and on or before
23July 1, 2017, and (iii) 100% of the selling price thereafter.
24If, at any time, however, the tax under this Act on sales of

 

 

SB0157 Enrolled- 46 -LRB102 10128 HLH 16591 b

1gasohol, as defined in the Use Tax Act, is imposed at the rate
2of 1.25%, then the tax imposed by this Act applies to 100% of
3the proceeds of sales of gasohol made during that time.
4    With respect to majority blended ethanol fuel, as defined
5in the Use Tax Act, the tax imposed by this Act does not apply
6to the selling price of property transferred as an incident to
7the sale of service on or after July 1, 2003 and on or before
8December 31, 2023 but applies to 100% of the selling price
9thereafter.
10    With respect to biodiesel blends, as defined in the Use
11Tax Act, with no less than 1% and no more than 10% biodiesel,
12the tax imposed by this Act applies to (i) 80% of the selling
13price of property transferred as an incident to the sale of
14service on or after July 1, 2003 and on or before December 31,
152018 and (ii) 100% of the proceeds of the selling price after
16December 31, 2018 and before January 1, 2024. On and after
17January 1, 2024 and on or before December 31, 2030, the
18taxation of biodiesel, renewable diesel, and biodiesel blends
19shall be as provided in Section 3-5.1 of the Use Tax
20Act thereafter. If, at any time, however, the tax under this
21Act on sales of biodiesel blends, as defined in the Use Tax
22Act, with no less than 1% and no more than 10% biodiesel is
23imposed at the rate of 1.25%, then the tax imposed by this Act
24applies to 100% of the proceeds of sales of biodiesel blends
25with no less than 1% and no more than 10% biodiesel made during
26that time.

 

 

SB0157 Enrolled- 47 -LRB102 10128 HLH 16591 b

1    With respect to 100% biodiesel, as defined in the Use Tax
2Act, and biodiesel blends, as defined in the Use Tax Act, with
3more than 10% but no more than 99% biodiesel, the tax imposed
4by this Act does not apply to the proceeds of the selling price
5of property transferred as an incident to the sale of service
6on or after July 1, 2003 and on or before December 31, 2023 but
7applies to 100% of the selling price thereafter. On and after
8January 1, 2024 and on or before December 31, 2030, the
9taxation of biodiesel, renewable diesel, and biodiesel blends
10shall be as provided in Section 3-5.1 of the Use Tax Act.
11    At the election of any registered serviceman made for each
12fiscal year, sales of service in which the aggregate annual
13cost price of tangible personal property transferred as an
14incident to the sales of service is less than 35%, or 75% in
15the case of servicemen transferring prescription drugs or
16servicemen engaged in graphic arts production, of the
17aggregate annual total gross receipts from all sales of
18service, the tax imposed by this Act shall be based on the
19serviceman's cost price of the tangible personal property
20transferred as an incident to the sale of those services.
21    The tax shall be imposed at the rate of 1% on food prepared
22for immediate consumption and transferred incident to a sale
23of service subject to this Act or the Service Occupation Tax
24Act by an entity licensed under the Hospital Licensing Act,
25the Nursing Home Care Act, the Assisted Living and Shared
26Housing Act, the ID/DD Community Care Act, the MC/DD Act, the

 

 

SB0157 Enrolled- 48 -LRB102 10128 HLH 16591 b

1Specialized Mental Health Rehabilitation Act of 2013, or the
2Child Care Act of 1969, or an entity that holds a permit issued
3pursuant to the Life Care Facilities Act. The tax shall also be
4imposed at the rate of 1% on food for human consumption that is
5to be consumed off the premises where it is sold (other than
6alcoholic beverages, food consisting of or infused with adult
7use cannabis, soft drinks, and food that has been prepared for
8immediate consumption and is not otherwise included in this
9paragraph) and prescription and nonprescription medicines,
10drugs, medical appliances, products classified as Class III
11medical devices by the United States Food and Drug
12Administration that are used for cancer treatment pursuant to
13a prescription, as well as any accessories and components
14related to those devices, modifications to a motor vehicle for
15the purpose of rendering it usable by a person with a
16disability, and insulin, blood sugar testing materials,
17syringes, and needles used by human diabetics. For the
18purposes of this Section, until September 1, 2009: the term
19"soft drinks" means any complete, finished, ready-to-use,
20non-alcoholic drink, whether carbonated or not, including but
21not limited to soda water, cola, fruit juice, vegetable juice,
22carbonated water, and all other preparations commonly known as
23soft drinks of whatever kind or description that are contained
24in any closed or sealed bottle, can, carton, or container,
25regardless of size; but "soft drinks" does not include coffee,
26tea, non-carbonated water, infant formula, milk or milk

 

 

SB0157 Enrolled- 49 -LRB102 10128 HLH 16591 b

1products as defined in the Grade A Pasteurized Milk and Milk
2Products Act, or drinks containing 50% or more natural fruit
3or vegetable juice.
4    Notwithstanding any other provisions of this Act,
5beginning September 1, 2009, "soft drinks" means non-alcoholic
6beverages that contain natural or artificial sweeteners. "Soft
7drinks" do not include beverages that contain milk or milk
8products, soy, rice or similar milk substitutes, or greater
9than 50% of vegetable or fruit juice by volume.
10    Until August 1, 2009, and notwithstanding any other
11provisions of this Act, "food for human consumption that is to
12be consumed off the premises where it is sold" includes all
13food sold through a vending machine, except soft drinks and
14food products that are dispensed hot from a vending machine,
15regardless of the location of the vending machine. Beginning
16August 1, 2009, and notwithstanding any other provisions of
17this Act, "food for human consumption that is to be consumed
18off the premises where it is sold" includes all food sold
19through a vending machine, except soft drinks, candy, and food
20products that are dispensed hot from a vending machine,
21regardless of the location of the vending machine.
22    Notwithstanding any other provisions of this Act,
23beginning September 1, 2009, "food for human consumption that
24is to be consumed off the premises where it is sold" does not
25include candy. For purposes of this Section, "candy" means a
26preparation of sugar, honey, or other natural or artificial

 

 

SB0157 Enrolled- 50 -LRB102 10128 HLH 16591 b

1sweeteners in combination with chocolate, fruits, nuts or
2other ingredients or flavorings in the form of bars, drops, or
3pieces. "Candy" does not include any preparation that contains
4flour or requires refrigeration.
5    Notwithstanding any other provisions of this Act,
6beginning September 1, 2009, "nonprescription medicines and
7drugs" does not include grooming and hygiene products. For
8purposes of this Section, "grooming and hygiene products"
9includes, but is not limited to, soaps and cleaning solutions,
10shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
11lotions and screens, unless those products are available by
12prescription only, regardless of whether the products meet the
13definition of "over-the-counter-drugs". For the purposes of
14this paragraph, "over-the-counter-drug" means a drug for human
15use that contains a label that identifies the product as a drug
16as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
17label includes:
18        (A) A "Drug Facts" panel; or
19        (B) A statement of the "active ingredient(s)" with a
20    list of those ingredients contained in the compound,
21    substance or preparation.
22    Beginning on January 1, 2014 (the effective date of Public
23Act 98-122), "prescription and nonprescription medicines and
24drugs" includes medical cannabis purchased from a registered
25dispensing organization under the Compassionate Use of Medical
26Cannabis Program Act.

 

 

SB0157 Enrolled- 51 -LRB102 10128 HLH 16591 b

1    As used in this Section, "adult use cannabis" means
2cannabis subject to tax under the Cannabis Cultivation
3Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
4and does not include cannabis subject to tax under the
5Compassionate Use of Medical Cannabis Program Act.
6    If the property that is acquired from a serviceman is
7acquired outside Illinois and used outside Illinois before
8being brought to Illinois for use here and is taxable under
9this Act, the "selling price" on which the tax is computed
10shall be reduced by an amount that represents a reasonable
11allowance for depreciation for the period of prior
12out-of-state use.
13(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
14102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
15    Section 20-15. The Service Occupation Tax Act is amended
16by changing Section 3-10 as follows:
 
17    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
18    Sec. 3-10. Rate of tax. Unless otherwise provided in this
19Section, the tax imposed by this Act is at the rate of 6.25% of
20the "selling price", as defined in Section 2 of the Service Use
21Tax Act, of the tangible personal property. For the purpose of
22computing this tax, in no event shall the "selling price" be
23less than the cost price to the serviceman of the tangible
24personal property transferred. The selling price of each item

 

 

SB0157 Enrolled- 52 -LRB102 10128 HLH 16591 b

1of tangible personal property transferred as an incident of a
2sale of service may be shown as a distinct and separate item on
3the serviceman's billing to the service customer. If the
4selling price is not so shown, the selling price of the
5tangible personal property is deemed to be 50% of the
6serviceman's entire billing to the service customer. When,
7however, a serviceman contracts to design, develop, and
8produce special order machinery or equipment, the tax imposed
9by this Act shall be based on the serviceman's cost price of
10the tangible personal property transferred incident to the
11completion of the contract.
12    Beginning on July 1, 2000 and through December 31, 2000,
13with respect to motor fuel, as defined in Section 1.1 of the
14Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
15the Use Tax Act, the tax is imposed at the rate of 1.25%.
16    With respect to gasohol, as defined in the Use Tax Act, the
17tax imposed by this Act shall apply to (i) 70% of the cost
18price of property transferred as an incident to the sale of
19service on or after January 1, 1990, and before July 1, 2003,
20(ii) 80% of the selling price of property transferred as an
21incident to the sale of service on or after July 1, 2003 and on
22or before July 1, 2017, and (iii) 100% of the cost price
23thereafter. If, at any time, however, the tax under this Act on
24sales of gasohol, as defined in the Use Tax Act, is imposed at
25the rate of 1.25%, then the tax imposed by this Act applies to
26100% of the proceeds of sales of gasohol made during that time.

 

 

SB0157 Enrolled- 53 -LRB102 10128 HLH 16591 b

1    With respect to majority blended ethanol fuel, as defined
2in the Use Tax Act, the tax imposed by this Act does not apply
3to the selling price of property transferred as an incident to
4the sale of service on or after July 1, 2003 and on or before
5December 31, 2023 but applies to 100% of the selling price
6thereafter.
7    With respect to biodiesel blends, as defined in the Use
8Tax Act, with no less than 1% and no more than 10% biodiesel,
9the tax imposed by this Act applies to (i) 80% of the selling
10price of property transferred as an incident to the sale of
11service on or after July 1, 2003 and on or before December 31,
122018 and (ii) 100% of the proceeds of the selling price after
13December 31, 2018 and before January 1, 2024. On and after
14January 1, 2024 and on or before December 31, 2030, the
15taxation of biodiesel, renewable diesel, and biodiesel blends
16shall be as provided in Section 3-5.1 of the Use Tax
17Act thereafter. If, at any time, however, the tax under this
18Act on sales of biodiesel blends, as defined in the Use Tax
19Act, with no less than 1% and no more than 10% biodiesel is
20imposed at the rate of 1.25%, then the tax imposed by this Act
21applies to 100% of the proceeds of sales of biodiesel blends
22with no less than 1% and no more than 10% biodiesel made during
23that time.
24    With respect to 100% biodiesel, as defined in the Use Tax
25Act, and biodiesel blends, as defined in the Use Tax Act, with
26more than 10% but no more than 99% biodiesel material, the tax

 

 

SB0157 Enrolled- 54 -LRB102 10128 HLH 16591 b

1imposed by this Act does not apply to the proceeds of the
2selling price of property transferred as an incident to the
3sale of service on or after July 1, 2003 and on or before
4December 31, 2023 but applies to 100% of the selling price
5thereafter. On and after January 1, 2024 and on or before
6December 31, 2030, the taxation of biodiesel, renewable
7diesel, and biodiesel blends shall be as provided in Section
83-5.1 of the Use Tax Act.
9    At the election of any registered serviceman made for each
10fiscal year, sales of service in which the aggregate annual
11cost price of tangible personal property transferred as an
12incident to the sales of service is less than 35%, or 75% in
13the case of servicemen transferring prescription drugs or
14servicemen engaged in graphic arts production, of the
15aggregate annual total gross receipts from all sales of
16service, the tax imposed by this Act shall be based on the
17serviceman's cost price of the tangible personal property
18transferred incident to the sale of those services.
19    The tax shall be imposed at the rate of 1% on food prepared
20for immediate consumption and transferred incident to a sale
21of service subject to this Act or the Service Occupation Tax
22Act by an entity licensed under the Hospital Licensing Act,
23the Nursing Home Care Act, the Assisted Living and Shared
24Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
25Specialized Mental Health Rehabilitation Act of 2013, or the
26Child Care Act of 1969, or an entity that holds a permit issued

 

 

SB0157 Enrolled- 55 -LRB102 10128 HLH 16591 b

1pursuant to the Life Care Facilities Act. The tax shall also be
2imposed at the rate of 1% on food for human consumption that is
3to be consumed off the premises where it is sold (other than
4alcoholic beverages, food consisting of or infused with adult
5use cannabis, soft drinks, and food that has been prepared for
6immediate consumption and is not otherwise included in this
7paragraph) and prescription and nonprescription medicines,
8drugs, medical appliances, products classified as Class III
9medical devices by the United States Food and Drug
10Administration that are used for cancer treatment pursuant to
11a prescription, as well as any accessories and components
12related to those devices, modifications to a motor vehicle for
13the purpose of rendering it usable by a person with a
14disability, and insulin, blood sugar testing materials,
15syringes, and needles used by human diabetics. For the
16purposes of this Section, until September 1, 2009: the term
17"soft drinks" means any complete, finished, ready-to-use,
18non-alcoholic drink, whether carbonated or not, including but
19not limited to soda water, cola, fruit juice, vegetable juice,
20carbonated water, and all other preparations commonly known as
21soft drinks of whatever kind or description that are contained
22in any closed or sealed can, carton, or container, regardless
23of size; but "soft drinks" does not include coffee, tea,
24non-carbonated water, infant formula, milk or milk products as
25defined in the Grade A Pasteurized Milk and Milk Products Act,
26or drinks containing 50% or more natural fruit or vegetable

 

 

SB0157 Enrolled- 56 -LRB102 10128 HLH 16591 b

1juice.
2    Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "soft drinks" means non-alcoholic
4beverages that contain natural or artificial sweeteners. "Soft
5drinks" do not include beverages that contain milk or milk
6products, soy, rice or similar milk substitutes, or greater
7than 50% of vegetable or fruit juice by volume.
8    Until August 1, 2009, and notwithstanding any other
9provisions of this Act, "food for human consumption that is to
10be consumed off the premises where it is sold" includes all
11food sold through a vending machine, except soft drinks and
12food products that are dispensed hot from a vending machine,
13regardless of the location of the vending machine. Beginning
14August 1, 2009, and notwithstanding any other provisions of
15this Act, "food for human consumption that is to be consumed
16off the premises where it is sold" includes all food sold
17through a vending machine, except soft drinks, candy, and food
18products that are dispensed hot from a vending machine,
19regardless of the location of the vending machine.
20    Notwithstanding any other provisions of this Act,
21beginning September 1, 2009, "food for human consumption that
22is to be consumed off the premises where it is sold" does not
23include candy. For purposes of this Section, "candy" means a
24preparation of sugar, honey, or other natural or artificial
25sweeteners in combination with chocolate, fruits, nuts or
26other ingredients or flavorings in the form of bars, drops, or

 

 

SB0157 Enrolled- 57 -LRB102 10128 HLH 16591 b

1pieces. "Candy" does not include any preparation that contains
2flour or requires refrigeration.
3    Notwithstanding any other provisions of this Act,
4beginning September 1, 2009, "nonprescription medicines and
5drugs" does not include grooming and hygiene products. For
6purposes of this Section, "grooming and hygiene products"
7includes, but is not limited to, soaps and cleaning solutions,
8shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
9lotions and screens, unless those products are available by
10prescription only, regardless of whether the products meet the
11definition of "over-the-counter-drugs". For the purposes of
12this paragraph, "over-the-counter-drug" means a drug for human
13use that contains a label that identifies the product as a drug
14as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
15label includes:
16        (A) A "Drug Facts" panel; or
17        (B) A statement of the "active ingredient(s)" with a
18    list of those ingredients contained in the compound,
19    substance or preparation.
20    Beginning on January 1, 2014 (the effective date of Public
21Act 98-122), "prescription and nonprescription medicines and
22drugs" includes medical cannabis purchased from a registered
23dispensing organization under the Compassionate Use of Medical
24Cannabis Program Act.
25    As used in this Section, "adult use cannabis" means
26cannabis subject to tax under the Cannabis Cultivation

 

 

SB0157 Enrolled- 58 -LRB102 10128 HLH 16591 b

1Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
2and does not include cannabis subject to tax under the
3Compassionate Use of Medical Cannabis Program Act.
4(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
5102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
6    Section 20-20. The Retailers' Occupation Tax Act is
7amended by changing Section 2-10 as follows:
 
8    (35 ILCS 120/2-10)
9    Sec. 2-10. Rate of tax. Unless otherwise provided in this
10Section, the tax imposed by this Act is at the rate of 6.25% of
11gross receipts from sales of tangible personal property made
12in the course of business.
13    Beginning on July 1, 2000 and through December 31, 2000,
14with respect to motor fuel, as defined in Section 1.1 of the
15Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
16the Use Tax Act, the tax is imposed at the rate of 1.25%.
17    Beginning on August 6, 2010 through August 15, 2010, with
18respect to sales tax holiday items as defined in Section 2-8 of
19this Act, the tax is imposed at the rate of 1.25%.
20    Within 14 days after the effective date of this amendatory
21Act of the 91st General Assembly, each retailer of motor fuel
22and gasohol shall cause the following notice to be posted in a
23prominently visible place on each retail dispensing device
24that is used to dispense motor fuel or gasohol in the State of

 

 

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1Illinois: "As of July 1, 2000, the State of Illinois has
2eliminated the State's share of sales tax on motor fuel and
3gasohol through December 31, 2000. The price on this pump
4should reflect the elimination of the tax." The notice shall
5be printed in bold print on a sign that is no smaller than 4
6inches by 8 inches. The sign shall be clearly visible to
7customers. Any retailer who fails to post or maintain a
8required sign through December 31, 2000 is guilty of a petty
9offense for which the fine shall be $500 per day per each
10retail premises where a violation occurs.
11    With respect to gasohol, as defined in the Use Tax Act, the
12tax imposed by this Act applies to (i) 70% of the proceeds of
13sales made on or after January 1, 1990, and before July 1,
142003, (ii) 80% of the proceeds of sales made on or after July
151, 2003 and on or before July 1, 2017, and (iii) 100% of the
16proceeds of sales made thereafter. If, at any time, however,
17the tax under this Act on sales of gasohol, as defined in the
18Use Tax Act, is imposed at the rate of 1.25%, then the tax
19imposed by this Act applies to 100% of the proceeds of sales of
20gasohol made during that time.
21    With respect to majority blended ethanol fuel, as defined
22in the Use Tax Act, the tax imposed by this Act does not apply
23to the proceeds of sales made on or after July 1, 2003 and on
24or before December 31, 2023 but applies to 100% of the proceeds
25of sales made thereafter.
26    With respect to biodiesel blends, as defined in the Use

 

 

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1Tax Act, with no less than 1% and no more than 10% biodiesel,
2the tax imposed by this Act applies to (i) 80% of the proceeds
3of sales made on or after July 1, 2003 and on or before
4December 31, 2018 and (ii) 100% of the proceeds of sales made
5after December 31, 2018 and before January 1, 2024. On and
6after January 1, 2024 and on or before December 31, 2030, the
7taxation of biodiesel, renewable diesel, and biodiesel blends
8shall be as provided in Section 3-5.1 of the Use Tax Act
9thereafter. If, at any time, however, the tax under this Act on
10sales of biodiesel blends, as defined in the Use Tax Act, with
11no less than 1% and no more than 10% biodiesel is imposed at
12the rate of 1.25%, then the tax imposed by this Act applies to
13100% of the proceeds of sales of biodiesel blends with no less
14than 1% and no more than 10% biodiesel made during that time.
15    With respect to 100% biodiesel, as defined in the Use Tax
16Act, and biodiesel blends, as defined in the Use Tax Act, with
17more than 10% but no more than 99% biodiesel, the tax imposed
18by this Act does not apply to the proceeds of sales made on or
19after July 1, 2003 and on or before December 31, 2023 but
20applies to 100% of the proceeds of sales made thereafter. On
21and after January 1, 2024 and on or before December 31, 2030,
22the taxation of biodiesel, renewable diesel, and biodiesel
23blends shall be as provided in Section 3-5.1 of the Use Tax
24Act.
25    With respect to food for human consumption that is to be
26consumed off the premises where it is sold (other than

 

 

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1alcoholic beverages, food consisting of or infused with adult
2use cannabis, soft drinks, and food that has been prepared for
3immediate consumption) and prescription and nonprescription
4medicines, drugs, medical appliances, products classified as
5Class III medical devices by the United States Food and Drug
6Administration that are used for cancer treatment pursuant to
7a prescription, as well as any accessories and components
8related to those devices, modifications to a motor vehicle for
9the purpose of rendering it usable by a person with a
10disability, and insulin, blood sugar testing materials,
11syringes, and needles used by human diabetics, the tax is
12imposed at the rate of 1%. For the purposes of this Section,
13until September 1, 2009: the term "soft drinks" means any
14complete, finished, ready-to-use, non-alcoholic drink, whether
15carbonated or not, including but not limited to soda water,
16cola, fruit juice, vegetable juice, carbonated water, and all
17other preparations commonly known as soft drinks of whatever
18kind or description that are contained in any closed or sealed
19bottle, can, carton, or container, regardless of size; but
20"soft drinks" does not include coffee, tea, non-carbonated
21water, infant formula, milk or milk products as defined in the
22Grade A Pasteurized Milk and Milk Products Act, or drinks
23containing 50% or more natural fruit or vegetable juice.
24    Notwithstanding any other provisions of this Act,
25beginning September 1, 2009, "soft drinks" means non-alcoholic
26beverages that contain natural or artificial sweeteners. "Soft

 

 

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1drinks" do not include beverages that contain milk or milk
2products, soy, rice or similar milk substitutes, or greater
3than 50% of vegetable or fruit juice by volume.
4    Until August 1, 2009, and notwithstanding any other
5provisions of this Act, "food for human consumption that is to
6be consumed off the premises where it is sold" includes all
7food sold through a vending machine, except soft drinks and
8food products that are dispensed hot from a vending machine,
9regardless of the location of the vending machine. Beginning
10August 1, 2009, and notwithstanding any other provisions of
11this Act, "food for human consumption that is to be consumed
12off the premises where it is sold" includes all food sold
13through a vending machine, except soft drinks, candy, and food
14products that are dispensed hot from a vending machine,
15regardless of the location of the vending machine.
16    Notwithstanding any other provisions of this Act,
17beginning September 1, 2009, "food for human consumption that
18is to be consumed off the premises where it is sold" does not
19include candy. For purposes of this Section, "candy" means a
20preparation of sugar, honey, or other natural or artificial
21sweeteners in combination with chocolate, fruits, nuts or
22other ingredients or flavorings in the form of bars, drops, or
23pieces. "Candy" does not include any preparation that contains
24flour or requires refrigeration.
25    Notwithstanding any other provisions of this Act,
26beginning September 1, 2009, "nonprescription medicines and

 

 

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1drugs" does not include grooming and hygiene products. For
2purposes of this Section, "grooming and hygiene products"
3includes, but is not limited to, soaps and cleaning solutions,
4shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
5lotions and screens, unless those products are available by
6prescription only, regardless of whether the products meet the
7definition of "over-the-counter-drugs". For the purposes of
8this paragraph, "over-the-counter-drug" means a drug for human
9use that contains a label that identifies the product as a drug
10as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
11label includes:
12        (A) A "Drug Facts" panel; or
13        (B) A statement of the "active ingredient(s)" with a
14    list of those ingredients contained in the compound,
15    substance or preparation.
16    Beginning on the effective date of this amendatory Act of
17the 98th General Assembly, "prescription and nonprescription
18medicines and drugs" includes medical cannabis purchased from
19a registered dispensing organization under the Compassionate
20Use of Medical Cannabis Program Act.
21    As used in this Section, "adult use cannabis" means
22cannabis subject to tax under the Cannabis Cultivation
23Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
24and does not include cannabis subject to tax under the
25Compassionate Use of Medical Cannabis Program Act.
26(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;

 

 

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1102-4, eff. 4-27-21.)
 
2    Section 20-25. The Motor Fuel Tax Law is amended by adding
3Section 3d as follows:
 
4    (35 ILCS 505/3d new)
5    Sec. 3d. Right to blend.
6    (a) A distributor who is properly licensed and permitted
7as a blender pursuant to this Act may blend petroleum-based
8diesel fuel with biodiesel and sell the blended or unblended
9product on any premises owned and operated by the distributor
10for the purpose of supporting or facilitating the retail sale
11of motor fuel.
12    (b) A refiner or supplier of petroleum-based diesel fuel
13or biodiesel shall not refuse to sell or transport to a
14distributor who is properly licensed and permitted as a
15blender pursuant to this Act any petroleum-based diesel fuel
16or biodiesel based on the distributor's or dealer's intent to
17use that product for blending.
 
18
ARTICLE 25. HOSPITALS

 
19    Section 25-5. The Illinois Income Tax Act is amended by
20changing Section 223 as follows:
 
21    (35 ILCS 5/223)

 

 

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1    Sec. 223. Hospital credit.
2    (a) For tax years ending on or after December 31, 2012 and
3ending on or before December 31, 2027 December 31, 2022, a
4taxpayer that is the owner of a hospital licensed under the
5Hospital Licensing Act, but not including an organization that
6is exempt from federal income taxes under the Internal Revenue
7Code, is entitled to a credit against the taxes imposed under
8subsections (a) and (b) of Section 201 of this Act in an amount
9equal to the lesser of the amount of real property taxes paid
10during the tax year on real property used for hospital
11purposes during the prior tax year or the cost of free or
12discounted services provided during the tax year pursuant to
13the hospital's charitable financial assistance policy,
14measured at cost.
15    (b) If the taxpayer is a partnership or Subchapter S
16corporation, the credit is allowed to the partners or
17shareholders in accordance with the determination of income
18and distributive share of income under Sections 702 and 704
19and Subchapter S of the Internal Revenue Code. A transfer of
20this credit may be made by the taxpayer earning the credit
21within one year after the credit is earned in accordance with
22rules adopted by the Department. The Department shall
23prescribe rules to enforce and administer provisions of this
24Section. If the amount of the credit exceeds the tax liability
25for the year, then the excess credit may be carried forward and
26applied to the tax liability of the 5 taxable years following

 

 

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1the excess credit year. The credit shall be applied to the
2earliest year for which there is a tax liability. If there are
3credits from more than one tax year that are available to
4offset a liability, the earlier credit shall be applied first.
5In no event shall a credit under this Section reduce the
6taxpayer's liability to less than zero.
7(Source: P.A. 100-587, eff. 6-4-18.)
 
8    Section 25-10. The Use Tax Act is amended by changing
9Section 3-8 as follows:
 
10    (35 ILCS 105/3-8)
11    Sec. 3-8. Hospital exemption.
12    (a) Tangible Until July 1, 2022, tangible personal
13property sold to or used by a hospital owner that owns one or
14more hospitals licensed under the Hospital Licensing Act or
15operated under the University of Illinois Hospital Act, or a
16hospital affiliate that is not already exempt under another
17provision of this Act and meets the criteria for an exemption
18under this Section, is exempt from taxation under this Act.
19    (b) A hospital owner or hospital affiliate satisfies the
20conditions for an exemption under this Section if the value of
21qualified services or activities listed in subsection (c) of
22this Section for the hospital year equals or exceeds the
23relevant hospital entity's estimated property tax liability,
24without regard to any property tax exemption granted under

 

 

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1Section 15-86 of the Property Tax Code, for the calendar year
2in which exemption or renewal of exemption is sought. For
3purposes of making the calculations required by this
4subsection (b), if the relevant hospital entity is a hospital
5owner that owns more than one hospital, the value of the
6services or activities listed in subsection (c) shall be
7calculated on the basis of only those services and activities
8relating to the hospital that includes the subject property,
9and the relevant hospital entity's estimated property tax
10liability shall be calculated only with respect to the
11properties comprising that hospital. In the case of a
12multi-state hospital system or hospital affiliate, the value
13of the services or activities listed in subsection (c) shall
14be calculated on the basis of only those services and
15activities that occur in Illinois and the relevant hospital
16entity's estimated property tax liability shall be calculated
17only with respect to its property located in Illinois.
18    (c) The following services and activities shall be
19considered for purposes of making the calculations required by
20subsection (b):
21        (1) Charity care. Free or discounted services provided
22    pursuant to the relevant hospital entity's financial
23    assistance policy, measured at cost, including discounts
24    provided under the Hospital Uninsured Patient Discount
25    Act.
26        (2) Health services to low-income and underserved

 

 

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1    individuals. Other unreimbursed costs of the relevant
2    hospital entity for providing without charge, paying for,
3    or subsidizing goods, activities, or services for the
4    purpose of addressing the health of low-income or
5    underserved individuals. Those activities or services may
6    include, but are not limited to: financial or in-kind
7    support to affiliated or unaffiliated hospitals, hospital
8    affiliates, community clinics, or programs that treat
9    low-income or underserved individuals; paying for or
10    subsidizing health care professionals who care for
11    low-income or underserved individuals; providing or
12    subsidizing outreach or educational services to low-income
13    or underserved individuals for disease management and
14    prevention; free or subsidized goods, supplies, or
15    services needed by low-income or underserved individuals
16    because of their medical condition; and prenatal or
17    childbirth outreach to low-income or underserved persons.
18        (3) Subsidy of State or local governments. Direct or
19    indirect financial or in-kind subsidies of State or local
20    governments by the relevant hospital entity that pay for
21    or subsidize activities or programs related to health care
22    for low-income or underserved individuals.
23        (4) Support for State health care programs for
24    low-income individuals. At the election of the hospital
25    applicant for each applicable year, either (A) 10% of
26    payments to the relevant hospital entity and any hospital

 

 

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1    affiliate designated by the relevant hospital entity
2    (provided that such hospital affiliate's operations
3    provide financial or operational support for or receive
4    financial or operational support from the relevant
5    hospital entity) under Medicaid or other means-tested
6    programs, including, but not limited to, General
7    Assistance, the Covering ALL KIDS Health Insurance Act,
8    and the State Children's Health Insurance Program or (B)
9    the amount of subsidy provided by the relevant hospital
10    entity and any hospital affiliate designated by the
11    relevant hospital entity (provided that such hospital
12    affiliate's operations provide financial or operational
13    support for or receive financial or operational support
14    from the relevant hospital entity) to State or local
15    government in treating Medicaid recipients and recipients
16    of means-tested programs, including but not limited to
17    General Assistance, the Covering ALL KIDS Health Insurance
18    Act, and the State Children's Health Insurance Program.
19    The amount of subsidy for purpose of this item (4) is
20    calculated in the same manner as unreimbursed costs are
21    calculated for Medicaid and other means-tested government
22    programs in the Schedule H of IRS Form 990 in effect on the
23    effective date of this amendatory Act of the 97th General
24    Assembly.
25        (5) Dual-eligible subsidy. The amount of subsidy
26    provided to government by treating dual-eligible

 

 

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1    Medicare/Medicaid patients. The amount of subsidy for
2    purposes of this item (5) is calculated by multiplying the
3    relevant hospital entity's unreimbursed costs for
4    Medicare, calculated in the same manner as determined in
5    the Schedule H of IRS Form 990 in effect on the effective
6    date of this amendatory Act of the 97th General Assembly,
7    by the relevant hospital entity's ratio of dual-eligible
8    patients to total Medicare patients.
9        (6) Relief of the burden of government related to
10    health care. Except to the extent otherwise taken into
11    account in this subsection, the portion of unreimbursed
12    costs of the relevant hospital entity attributable to
13    providing, paying for, or subsidizing goods, activities,
14    or services that relieve the burden of government related
15    to health care for low-income individuals. Such activities
16    or services shall include, but are not limited to,
17    providing emergency, trauma, burn, neonatal, psychiatric,
18    rehabilitation, or other special services; providing
19    medical education; and conducting medical research or
20    training of health care professionals. The portion of
21    those unreimbursed costs attributable to benefiting
22    low-income individuals shall be determined using the ratio
23    calculated by adding the relevant hospital entity's costs
24    attributable to charity care, Medicaid, other means-tested
25    government programs, Medicare patients with disabilities
26    under age 65, and dual-eligible Medicare/Medicaid patients

 

 

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1    and dividing that total by the relevant hospital entity's
2    total costs. Such costs for the numerator and denominator
3    shall be determined by multiplying gross charges by the
4    cost to charge ratio taken from the hospital's most
5    recently filed Medicare cost report (CMS 2252-10
6    Worksheet, Part I). In the case of emergency services, the
7    ratio shall be calculated using costs (gross charges
8    multiplied by the cost to charge ratio taken from the
9    hospital's most recently filed Medicare cost report (CMS
10    2252-10 Worksheet, Part I)) of patients treated in the
11    relevant hospital entity's emergency department.
12        (7) Any other activity by the relevant hospital entity
13    that the Department determines relieves the burden of
14    government or addresses the health of low-income or
15    underserved individuals.
16    (d) The hospital applicant shall include information in
17its exemption application establishing that it satisfies the
18requirements of subsection (b). For purposes of making the
19calculations required by subsection (b), the hospital
20applicant may for each year elect to use either (1) the value
21of the services or activities listed in subsection (e) for the
22hospital year or (2) the average value of those services or
23activities for the 3 fiscal years ending with the hospital
24year. If the relevant hospital entity has been in operation
25for less than 3 completed fiscal years, then the latter
26calculation, if elected, shall be performed on a pro rata

 

 

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1basis.
2    (e) For purposes of making the calculations required by
3this Section:
4        (1) particular services or activities eligible for
5    consideration under any of the paragraphs (1) through (7)
6    of subsection (c) may not be counted under more than one of
7    those paragraphs; and
8        (2) the amount of unreimbursed costs and the amount of
9    subsidy shall not be reduced by restricted or unrestricted
10    payments received by the relevant hospital entity as
11    contributions deductible under Section 170(a) of the
12    Internal Revenue Code.
13    (f) (Blank).
14    (g) Estimation of Exempt Property Tax Liability. The
15estimated property tax liability used for the determination in
16subsection (b) shall be calculated as follows:
17        (1) "Estimated property tax liability" means the
18    estimated dollar amount of property tax that would be
19    owed, with respect to the exempt portion of each of the
20    relevant hospital entity's properties that are already
21    fully or partially exempt, or for which an exemption in
22    whole or in part is currently being sought, and then
23    aggregated as applicable, as if the exempt portion of
24    those properties were subject to tax, calculated with
25    respect to each such property by multiplying:
26            (A) the lesser of (i) the actual assessed value,

 

 

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1        if any, of the portion of the property for which an
2        exemption is sought or (ii) an estimated assessed
3        value of the exempt portion of such property as
4        determined in item (2) of this subsection (g), by
5            (B) the applicable State equalization rate
6        (yielding the equalized assessed value), by
7            (C) the applicable tax rate.
8        (2) The estimated assessed value of the exempt portion
9    of the property equals the sum of (i) the estimated fair
10    market value of buildings on the property, as determined
11    in accordance with subparagraphs (A) and (B) of this item
12    (2), multiplied by the applicable assessment factor, and
13    (ii) the estimated assessed value of the land portion of
14    the property, as determined in accordance with
15    subparagraph (C).
16            (A) The "estimated fair market value of buildings
17        on the property" means the replacement value of any
18        exempt portion of buildings on the property, minus
19        depreciation, determined utilizing the cost
20        replacement method whereby the exempt square footage
21        of all such buildings is multiplied by the replacement
22        cost per square foot for Class A Average building
23        found in the most recent edition of the Marshall &
24        Swift Valuation Services Manual, adjusted by any
25        appropriate current cost and local multipliers.
26            (B) Depreciation, for purposes of calculating the

 

 

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1        estimated fair market value of buildings on the
2        property, is applied by utilizing a weighted mean life
3        for the buildings based on original construction and
4        assuming a 40-year life for hospital buildings and the
5        applicable life for other types of buildings as
6        specified in the American Hospital Association
7        publication "Estimated Useful Lives of Depreciable
8        Hospital Assets". In the case of hospital buildings,
9        the remaining life is divided by 40 and this ratio is
10        multiplied by the replacement cost of the buildings to
11        obtain an estimated fair market value of buildings. If
12        a hospital building is older than 35 years, a
13        remaining life of 5 years for residual value is
14        assumed; and if a building is less than 8 years old, a
15        remaining life of 32 years is assumed.
16            (C) The estimated assessed value of the land
17        portion of the property shall be determined by
18        multiplying (i) the per square foot average of the
19        assessed values of three parcels of land (not
20        including farm land, and excluding the assessed value
21        of the improvements thereon) reasonably comparable to
22        the property, by (ii) the number of square feet
23        comprising the exempt portion of the property's land
24        square footage.
25        (3) The assessment factor, State equalization rate,
26    and tax rate (including any special factors such as

 

 

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1    Enterprise Zones) used in calculating the estimated
2    property tax liability shall be for the most recent year
3    that is publicly available from the applicable chief
4    county assessment officer or officers at least 90 days
5    before the end of the hospital year.
6        (4) The method utilized to calculate estimated
7    property tax liability for purposes of this Section 15-86
8    shall not be utilized for the actual valuation,
9    assessment, or taxation of property pursuant to the
10    Property Tax Code.
11    (h) For the purpose of this Section, the following terms
12shall have the meanings set forth below:
13        (1) "Hospital" means any institution, place, building,
14    buildings on a campus, or other health care facility
15    located in Illinois that is licensed under the Hospital
16    Licensing Act and has a hospital owner.
17        (2) "Hospital owner" means a not-for-profit
18    corporation that is the titleholder of a hospital, or the
19    owner of the beneficial interest in an Illinois land trust
20    that is the titleholder of a hospital.
21        (3) "Hospital affiliate" means any corporation,
22    partnership, limited partnership, joint venture, limited
23    liability company, association or other organization,
24    other than a hospital owner, that directly or indirectly
25    controls, is controlled by, or is under common control
26    with one or more hospital owners and that supports, is

 

 

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1    supported by, or acts in furtherance of the exempt health
2    care purposes of at least one of those hospital owners'
3    hospitals.
4        (4) "Hospital system" means a hospital and one or more
5    other hospitals or hospital affiliates related by common
6    control or ownership.
7        (5) "Control" relating to hospital owners, hospital
8    affiliates, or hospital systems means possession, direct
9    or indirect, of the power to direct or cause the direction
10    of the management and policies of the entity, whether
11    through ownership of assets, membership interest, other
12    voting or governance rights, by contract or otherwise.
13        (6) "Hospital applicant" means a hospital owner or
14    hospital affiliate that files an application for an
15    exemption or renewal of exemption under this Section.
16        (7) "Relevant hospital entity" means (A) the hospital
17    owner, in the case of a hospital applicant that is a
18    hospital owner, and (B) at the election of a hospital
19    applicant that is a hospital affiliate, either (i) the
20    hospital affiliate or (ii) the hospital system to which
21    the hospital applicant belongs, including any hospitals or
22    hospital affiliates that are related by common control or
23    ownership.
24        (8) "Subject property" means property used for the
25    calculation under subsection (b) of this Section.
26        (9) "Hospital year" means the fiscal year of the

 

 

SB0157 Enrolled- 77 -LRB102 10128 HLH 16591 b

1    relevant hospital entity, or the fiscal year of one of the
2    hospital owners in the hospital system if the relevant
3    hospital entity is a hospital system with members with
4    different fiscal years, that ends in the year for which
5    the exemption is sought.
6    (i) It is the intent of the General Assembly that any
7exemptions taken, granted, or renewed under this Section prior
8to the effective date of this amendatory Act of the 100th
9General Assembly are hereby validated.
10    (j) It is the intent of the General Assembly that the
11exemption under this Section applies on a continuous basis. If
12this amendatory Act of the 102nd General Assembly takes effect
13after July 1, 2022, any exemptions taken, granted, or renewed
14under this Section on or after July 1, 2022 and prior to the
15effective date of this amendatory Act of the 102nd General
16Assembly are hereby validated.
17    (k) This Section is exempt from the provisions of Section
183-90.
19(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 
20    Section 25-15. The Service Use Tax Act is amended by
21changing Section 3-8 as follows:
 
22    (35 ILCS 110/3-8)
23    Sec. 3-8. Hospital exemption.
24    (a) Tangible Until July 1, 2022, tangible personal

 

 

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1property sold to or used by a hospital owner that owns one or
2more hospitals licensed under the Hospital Licensing Act or
3operated under the University of Illinois Hospital Act, or a
4hospital affiliate that is not already exempt under another
5provision of this Act and meets the criteria for an exemption
6under this Section, is exempt from taxation under this Act.
7    (b) A hospital owner or hospital affiliate satisfies the
8conditions for an exemption under this Section if the value of
9qualified services or activities listed in subsection (c) of
10this Section for the hospital year equals or exceeds the
11relevant hospital entity's estimated property tax liability,
12without regard to any property tax exemption granted under
13Section 15-86 of the Property Tax Code, for the calendar year
14in which exemption or renewal of exemption is sought. For
15purposes of making the calculations required by this
16subsection (b), if the relevant hospital entity is a hospital
17owner that owns more than one hospital, the value of the
18services or activities listed in subsection (c) shall be
19calculated on the basis of only those services and activities
20relating to the hospital that includes the subject property,
21and the relevant hospital entity's estimated property tax
22liability shall be calculated only with respect to the
23properties comprising that hospital. In the case of a
24multi-state hospital system or hospital affiliate, the value
25of the services or activities listed in subsection (c) shall
26be calculated on the basis of only those services and

 

 

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1activities that occur in Illinois and the relevant hospital
2entity's estimated property tax liability shall be calculated
3only with respect to its property located in Illinois.
4    (c) The following services and activities shall be
5considered for purposes of making the calculations required by
6subsection (b):
7        (1) Charity care. Free or discounted services provided
8    pursuant to the relevant hospital entity's financial
9    assistance policy, measured at cost, including discounts
10    provided under the Hospital Uninsured Patient Discount
11    Act.
12        (2) Health services to low-income and underserved
13    individuals. Other unreimbursed costs of the relevant
14    hospital entity for providing without charge, paying for,
15    or subsidizing goods, activities, or services for the
16    purpose of addressing the health of low-income or
17    underserved individuals. Those activities or services may
18    include, but are not limited to: financial or in-kind
19    support to affiliated or unaffiliated hospitals, hospital
20    affiliates, community clinics, or programs that treat
21    low-income or underserved individuals; paying for or
22    subsidizing health care professionals who care for
23    low-income or underserved individuals; providing or
24    subsidizing outreach or educational services to low-income
25    or underserved individuals for disease management and
26    prevention; free or subsidized goods, supplies, or

 

 

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1    services needed by low-income or underserved individuals
2    because of their medical condition; and prenatal or
3    childbirth outreach to low-income or underserved persons.
4        (3) Subsidy of State or local governments. Direct or
5    indirect financial or in-kind subsidies of State or local
6    governments by the relevant hospital entity that pay for
7    or subsidize activities or programs related to health care
8    for low-income or underserved individuals.
9        (4) Support for State health care programs for
10    low-income individuals. At the election of the hospital
11    applicant for each applicable year, either (A) 10% of
12    payments to the relevant hospital entity and any hospital
13    affiliate designated by the relevant hospital entity
14    (provided that such hospital affiliate's operations
15    provide financial or operational support for or receive
16    financial or operational support from the relevant
17    hospital entity) under Medicaid or other means-tested
18    programs, including, but not limited to, General
19    Assistance, the Covering ALL KIDS Health Insurance Act,
20    and the State Children's Health Insurance Program or (B)
21    the amount of subsidy provided by the relevant hospital
22    entity and any hospital affiliate designated by the
23    relevant hospital entity (provided that such hospital
24    affiliate's operations provide financial or operational
25    support for or receive financial or operational support
26    from the relevant hospital entity) to State or local

 

 

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1    government in treating Medicaid recipients and recipients
2    of means-tested programs, including but not limited to
3    General Assistance, the Covering ALL KIDS Health Insurance
4    Act, and the State Children's Health Insurance Program.
5    The amount of subsidy for purposes of this item (4) is
6    calculated in the same manner as unreimbursed costs are
7    calculated for Medicaid and other means-tested government
8    programs in the Schedule H of IRS Form 990 in effect on the
9    effective date of this amendatory Act of the 97th General
10    Assembly.
11        (5) Dual-eligible subsidy. The amount of subsidy
12    provided to government by treating dual-eligible
13    Medicare/Medicaid patients. The amount of subsidy for
14    purposes of this item (5) is calculated by multiplying the
15    relevant hospital entity's unreimbursed costs for
16    Medicare, calculated in the same manner as determined in
17    the Schedule H of IRS Form 990 in effect on the effective
18    date of this amendatory Act of the 97th General Assembly,
19    by the relevant hospital entity's ratio of dual-eligible
20    patients to total Medicare patients.
21        (6) Relief of the burden of government related to
22    health care. Except to the extent otherwise taken into
23    account in this subsection, the portion of unreimbursed
24    costs of the relevant hospital entity attributable to
25    providing, paying for, or subsidizing goods, activities,
26    or services that relieve the burden of government related

 

 

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1    to health care for low-income individuals. Such activities
2    or services shall include, but are not limited to,
3    providing emergency, trauma, burn, neonatal, psychiatric,
4    rehabilitation, or other special services; providing
5    medical education; and conducting medical research or
6    training of health care professionals. The portion of
7    those unreimbursed costs attributable to benefiting
8    low-income individuals shall be determined using the ratio
9    calculated by adding the relevant hospital entity's costs
10    attributable to charity care, Medicaid, other means-tested
11    government programs, Medicare patients with disabilities
12    under age 65, and dual-eligible Medicare/Medicaid patients
13    and dividing that total by the relevant hospital entity's
14    total costs. Such costs for the numerator and denominator
15    shall be determined by multiplying gross charges by the
16    cost to charge ratio taken from the hospital's most
17    recently filed Medicare cost report (CMS 2252-10
18    Worksheet, Part I). In the case of emergency services, the
19    ratio shall be calculated using costs (gross charges
20    multiplied by the cost to charge ratio taken from the
21    hospital's most recently filed Medicare cost report (CMS
22    2252-10 Worksheet, Part I)) of patients treated in the
23    relevant hospital entity's emergency department.
24        (7) Any other activity by the relevant hospital entity
25    that the Department determines relieves the burden of
26    government or addresses the health of low-income or

 

 

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1    underserved individuals.
2    (d) The hospital applicant shall include information in
3its exemption application establishing that it satisfies the
4requirements of subsection (b). For purposes of making the
5calculations required by subsection (b), the hospital
6applicant may for each year elect to use either (1) the value
7of the services or activities listed in subsection (e) for the
8hospital year or (2) the average value of those services or
9activities for the 3 fiscal years ending with the hospital
10year. If the relevant hospital entity has been in operation
11for less than 3 completed fiscal years, then the latter
12calculation, if elected, shall be performed on a pro rata
13basis.
14    (e) For purposes of making the calculations required by
15this Section:
16        (1) particular services or activities eligible for
17    consideration under any of the paragraphs (1) through (7)
18    of subsection (c) may not be counted under more than one of
19    those paragraphs; and
20        (2) the amount of unreimbursed costs and the amount of
21    subsidy shall not be reduced by restricted or unrestricted
22    payments received by the relevant hospital entity as
23    contributions deductible under Section 170(a) of the
24    Internal Revenue Code.
25    (f) (Blank).
26    (g) Estimation of Exempt Property Tax Liability. The

 

 

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1estimated property tax liability used for the determination in
2subsection (b) shall be calculated as follows:
3        (1) "Estimated property tax liability" means the
4    estimated dollar amount of property tax that would be
5    owed, with respect to the exempt portion of each of the
6    relevant hospital entity's properties that are already
7    fully or partially exempt, or for which an exemption in
8    whole or in part is currently being sought, and then
9    aggregated as applicable, as if the exempt portion of
10    those properties were subject to tax, calculated with
11    respect to each such property by multiplying:
12            (A) the lesser of (i) the actual assessed value,
13        if any, of the portion of the property for which an
14        exemption is sought or (ii) an estimated assessed
15        value of the exempt portion of such property as
16        determined in item (2) of this subsection (g), by
17            (B) the applicable State equalization rate
18        (yielding the equalized assessed value), by
19            (C) the applicable tax rate.
20        (2) The estimated assessed value of the exempt portion
21    of the property equals the sum of (i) the estimated fair
22    market value of buildings on the property, as determined
23    in accordance with subparagraphs (A) and (B) of this item
24    (2), multiplied by the applicable assessment factor, and
25    (ii) the estimated assessed value of the land portion of
26    the property, as determined in accordance with

 

 

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1    subparagraph (C).
2            (A) The "estimated fair market value of buildings
3        on the property" means the replacement value of any
4        exempt portion of buildings on the property, minus
5        depreciation, determined utilizing the cost
6        replacement method whereby the exempt square footage
7        of all such buildings is multiplied by the replacement
8        cost per square foot for Class A Average building
9        found in the most recent edition of the Marshall &
10        Swift Valuation Services Manual, adjusted by any
11        appropriate current cost and local multipliers.
12            (B) Depreciation, for purposes of calculating the
13        estimated fair market value of buildings on the
14        property, is applied by utilizing a weighted mean life
15        for the buildings based on original construction and
16        assuming a 40-year life for hospital buildings and the
17        applicable life for other types of buildings as
18        specified in the American Hospital Association
19        publication "Estimated Useful Lives of Depreciable
20        Hospital Assets". In the case of hospital buildings,
21        the remaining life is divided by 40 and this ratio is
22        multiplied by the replacement cost of the buildings to
23        obtain an estimated fair market value of buildings. If
24        a hospital building is older than 35 years, a
25        remaining life of 5 years for residual value is
26        assumed; and if a building is less than 8 years old, a

 

 

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1        remaining life of 32 years is assumed.
2            (C) The estimated assessed value of the land
3        portion of the property shall be determined by
4        multiplying (i) the per square foot average of the
5        assessed values of three parcels of land (not
6        including farm land, and excluding the assessed value
7        of the improvements thereon) reasonably comparable to
8        the property, by (ii) the number of square feet
9        comprising the exempt portion of the property's land
10        square footage.
11        (3) The assessment factor, State equalization rate,
12    and tax rate (including any special factors such as
13    Enterprise Zones) used in calculating the estimated
14    property tax liability shall be for the most recent year
15    that is publicly available from the applicable chief
16    county assessment officer or officers at least 90 days
17    before the end of the hospital year.
18        (4) The method utilized to calculate estimated
19    property tax liability for purposes of this Section 15-86
20    shall not be utilized for the actual valuation,
21    assessment, or taxation of property pursuant to the
22    Property Tax Code.
23    (h) For the purpose of this Section, the following terms
24shall have the meanings set forth below:
25        (1) "Hospital" means any institution, place, building,
26    buildings on a campus, or other health care facility

 

 

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1    located in Illinois that is licensed under the Hospital
2    Licensing Act and has a hospital owner.
3        (2) "Hospital owner" means a not-for-profit
4    corporation that is the titleholder of a hospital, or the
5    owner of the beneficial interest in an Illinois land trust
6    that is the titleholder of a hospital.
7        (3) "Hospital affiliate" means any corporation,
8    partnership, limited partnership, joint venture, limited
9    liability company, association or other organization,
10    other than a hospital owner, that directly or indirectly
11    controls, is controlled by, or is under common control
12    with one or more hospital owners and that supports, is
13    supported by, or acts in furtherance of the exempt health
14    care purposes of at least one of those hospital owners'
15    hospitals.
16        (4) "Hospital system" means a hospital and one or more
17    other hospitals or hospital affiliates related by common
18    control or ownership.
19        (5) "Control" relating to hospital owners, hospital
20    affiliates, or hospital systems means possession, direct
21    or indirect, of the power to direct or cause the direction
22    of the management and policies of the entity, whether
23    through ownership of assets, membership interest, other
24    voting or governance rights, by contract or otherwise.
25        (6) "Hospital applicant" means a hospital owner or
26    hospital affiliate that files an application for an

 

 

SB0157 Enrolled- 88 -LRB102 10128 HLH 16591 b

1    exemption or renewal of exemption under this Section.
2        (7) "Relevant hospital entity" means (A) the hospital
3    owner, in the case of a hospital applicant that is a
4    hospital owner, and (B) at the election of a hospital
5    applicant that is a hospital affiliate, either (i) the
6    hospital affiliate or (ii) the hospital system to which
7    the hospital applicant belongs, including any hospitals or
8    hospital affiliates that are related by common control or
9    ownership.
10        (8) "Subject property" means property used for the
11    calculation under subsection (b) of this Section.
12        (9) "Hospital year" means the fiscal year of the
13    relevant hospital entity, or the fiscal year of one of the
14    hospital owners in the hospital system if the relevant
15    hospital entity is a hospital system with members with
16    different fiscal years, that ends in the year for which
17    the exemption is sought.
18    (i) It is the intent of the General Assembly that any
19exemptions taken, granted, or renewed under this Section prior
20to the effective date of this amendatory Act of the 100th
21General Assembly are hereby validated.
22    (j) It is the intent of the General Assembly that the
23exemption under this Section applies on a continuous basis. If
24this amendatory Act of the 102nd General Assembly takes effect
25after July 1, 2022, any exemptions taken, granted, or renewed
26under this Section on or after July 1, 2022 and prior to the

 

 

SB0157 Enrolled- 89 -LRB102 10128 HLH 16591 b

1effective date of this amendatory Act of the 102nd General
2Assembly are hereby validated.
3    (k) This Section is exempt from the provisions of Section
43-75.
5(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 
6    Section 25-20. The Service Occupation Tax Act is amended
7by changing Section 3-8 as follows:
 
8    (35 ILCS 115/3-8)
9    Sec. 3-8. Hospital exemption.
10    (a) Tangible Until July 1, 2022, tangible personal
11property sold to or used by a hospital owner that owns one or
12more hospitals licensed under the Hospital Licensing Act or
13operated under the University of Illinois Hospital Act, or a
14hospital affiliate that is not already exempt under another
15provision of this Act and meets the criteria for an exemption
16under this Section, is exempt from taxation under this Act.
17    (b) A hospital owner or hospital affiliate satisfies the
18conditions for an exemption under this Section if the value of
19qualified services or activities listed in subsection (c) of
20this Section for the hospital year equals or exceeds the
21relevant hospital entity's estimated property tax liability,
22without regard to any property tax exemption granted under
23Section 15-86 of the Property Tax Code, for the calendar year
24in which exemption or renewal of exemption is sought. For

 

 

SB0157 Enrolled- 90 -LRB102 10128 HLH 16591 b

1purposes of making the calculations required by this
2subsection (b), if the relevant hospital entity is a hospital
3owner that owns more than one hospital, the value of the
4services or activities listed in subsection (c) shall be
5calculated on the basis of only those services and activities
6relating to the hospital that includes the subject property,
7and the relevant hospital entity's estimated property tax
8liability shall be calculated only with respect to the
9properties comprising that hospital. In the case of a
10multi-state hospital system or hospital affiliate, the value
11of the services or activities listed in subsection (c) shall
12be calculated on the basis of only those services and
13activities that occur in Illinois and the relevant hospital
14entity's estimated property tax liability shall be calculated
15only with respect to its property located in Illinois.
16    (c) The following services and activities shall be
17considered for purposes of making the calculations required by
18subsection (b):
19        (1) Charity care. Free or discounted services provided
20    pursuant to the relevant hospital entity's financial
21    assistance policy, measured at cost, including discounts
22    provided under the Hospital Uninsured Patient Discount
23    Act.
24        (2) Health services to low-income and underserved
25    individuals. Other unreimbursed costs of the relevant
26    hospital entity for providing without charge, paying for,

 

 

SB0157 Enrolled- 91 -LRB102 10128 HLH 16591 b

1    or subsidizing goods, activities, or services for the
2    purpose of addressing the health of low-income or
3    underserved individuals. Those activities or services may
4    include, but are not limited to: financial or in-kind
5    support to affiliated or unaffiliated hospitals, hospital
6    affiliates, community clinics, or programs that treat
7    low-income or underserved individuals; paying for or
8    subsidizing health care professionals who care for
9    low-income or underserved individuals; providing or
10    subsidizing outreach or educational services to low-income
11    or underserved individuals for disease management and
12    prevention; free or subsidized goods, supplies, or
13    services needed by low-income or underserved individuals
14    because of their medical condition; and prenatal or
15    childbirth outreach to low-income or underserved persons.
16        (3) Subsidy of State or local governments. Direct or
17    indirect financial or in-kind subsidies of State or local
18    governments by the relevant hospital entity that pay for
19    or subsidize activities or programs related to health care
20    for low-income or underserved individuals.
21        (4) Support for State health care programs for
22    low-income individuals. At the election of the hospital
23    applicant for each applicable year, either (A) 10% of
24    payments to the relevant hospital entity and any hospital
25    affiliate designated by the relevant hospital entity
26    (provided that such hospital affiliate's operations

 

 

SB0157 Enrolled- 92 -LRB102 10128 HLH 16591 b

1    provide financial or operational support for or receive
2    financial or operational support from the relevant
3    hospital entity) under Medicaid or other means-tested
4    programs, including, but not limited to, General
5    Assistance, the Covering ALL KIDS Health Insurance Act,
6    and the State Children's Health Insurance Program or (B)
7    the amount of subsidy provided by the relevant hospital
8    entity and any hospital affiliate designated by the
9    relevant hospital entity (provided that such hospital
10    affiliate's operations provide financial or operational
11    support for or receive financial or operational support
12    from the relevant hospital entity) to State or local
13    government in treating Medicaid recipients and recipients
14    of means-tested programs, including but not limited to
15    General Assistance, the Covering ALL KIDS Health Insurance
16    Act, and the State Children's Health Insurance Program.
17    The amount of subsidy for purposes of this item (4) is
18    calculated in the same manner as unreimbursed costs are
19    calculated for Medicaid and other means-tested government
20    programs in the Schedule H of IRS Form 990 in effect on the
21    effective date of this amendatory Act of the 97th General
22    Assembly.
23        (5) Dual-eligible subsidy. The amount of subsidy
24    provided to government by treating dual-eligible
25    Medicare/Medicaid patients. The amount of subsidy for
26    purposes of this item (5) is calculated by multiplying the

 

 

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1    relevant hospital entity's unreimbursed costs for
2    Medicare, calculated in the same manner as determined in
3    the Schedule H of IRS Form 990 in effect on the effective
4    date of this amendatory Act of the 97th General Assembly,
5    by the relevant hospital entity's ratio of dual-eligible
6    patients to total Medicare patients.
7        (6) Relief of the burden of government related to
8    health care. Except to the extent otherwise taken into
9    account in this subsection, the portion of unreimbursed
10    costs of the relevant hospital entity attributable to
11    providing, paying for, or subsidizing goods, activities,
12    or services that relieve the burden of government related
13    to health care for low-income individuals. Such activities
14    or services shall include, but are not limited to,
15    providing emergency, trauma, burn, neonatal, psychiatric,
16    rehabilitation, or other special services; providing
17    medical education; and conducting medical research or
18    training of health care professionals. The portion of
19    those unreimbursed costs attributable to benefiting
20    low-income individuals shall be determined using the ratio
21    calculated by adding the relevant hospital entity's costs
22    attributable to charity care, Medicaid, other means-tested
23    government programs, Medicare patients with disabilities
24    under age 65, and dual-eligible Medicare/Medicaid patients
25    and dividing that total by the relevant hospital entity's
26    total costs. Such costs for the numerator and denominator

 

 

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1    shall be determined by multiplying gross charges by the
2    cost to charge ratio taken from the hospital's most
3    recently filed Medicare cost report (CMS 2252-10
4    Worksheet, Part I). In the case of emergency services, the
5    ratio shall be calculated using costs (gross charges
6    multiplied by the cost to charge ratio taken from the
7    hospital's most recently filed Medicare cost report (CMS
8    2252-10 Worksheet, Part I)) of patients treated in the
9    relevant hospital entity's emergency department.
10        (7) Any other activity by the relevant hospital entity
11    that the Department determines relieves the burden of
12    government or addresses the health of low-income or
13    underserved individuals.
14    (d) The hospital applicant shall include information in
15its exemption application establishing that it satisfies the
16requirements of subsection (b). For purposes of making the
17calculations required by subsection (b), the hospital
18applicant may for each year elect to use either (1) the value
19of the services or activities listed in subsection (e) for the
20hospital year or (2) the average value of those services or
21activities for the 3 fiscal years ending with the hospital
22year. If the relevant hospital entity has been in operation
23for less than 3 completed fiscal years, then the latter
24calculation, if elected, shall be performed on a pro rata
25basis.
26    (e) For purposes of making the calculations required by

 

 

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1this Section:
2        (1) particular services or activities eligible for
3    consideration under any of the paragraphs (1) through (7)
4    of subsection (c) may not be counted under more than one of
5    those paragraphs; and
6        (2) the amount of unreimbursed costs and the amount of
7    subsidy shall not be reduced by restricted or unrestricted
8    payments received by the relevant hospital entity as
9    contributions deductible under Section 170(a) of the
10    Internal Revenue Code.
11    (f) (Blank).
12    (g) Estimation of Exempt Property Tax Liability. The
13estimated property tax liability used for the determination in
14subsection (b) shall be calculated as follows:
15        (1) "Estimated property tax liability" means the
16    estimated dollar amount of property tax that would be
17    owed, with respect to the exempt portion of each of the
18    relevant hospital entity's properties that are already
19    fully or partially exempt, or for which an exemption in
20    whole or in part is currently being sought, and then
21    aggregated as applicable, as if the exempt portion of
22    those properties were subject to tax, calculated with
23    respect to each such property by multiplying:
24            (A) the lesser of (i) the actual assessed value,
25        if any, of the portion of the property for which an
26        exemption is sought or (ii) an estimated assessed

 

 

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1        value of the exempt portion of such property as
2        determined in item (2) of this subsection (g), by
3            (B) the applicable State equalization rate
4        (yielding the equalized assessed value), by
5            (C) the applicable tax rate.
6        (2) The estimated assessed value of the exempt portion
7    of the property equals the sum of (i) the estimated fair
8    market value of buildings on the property, as determined
9    in accordance with subparagraphs (A) and (B) of this item
10    (2), multiplied by the applicable assessment factor, and
11    (ii) the estimated assessed value of the land portion of
12    the property, as determined in accordance with
13    subparagraph (C).
14            (A) The "estimated fair market value of buildings
15        on the property" means the replacement value of any
16        exempt portion of buildings on the property, minus
17        depreciation, determined utilizing the cost
18        replacement method whereby the exempt square footage
19        of all such buildings is multiplied by the replacement
20        cost per square foot for Class A Average building
21        found in the most recent edition of the Marshall &
22        Swift Valuation Services Manual, adjusted by any
23        appropriate current cost and local multipliers.
24            (B) Depreciation, for purposes of calculating the
25        estimated fair market value of buildings on the
26        property, is applied by utilizing a weighted mean life

 

 

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1        for the buildings based on original construction and
2        assuming a 40-year life for hospital buildings and the
3        applicable life for other types of buildings as
4        specified in the American Hospital Association
5        publication "Estimated Useful Lives of Depreciable
6        Hospital Assets". In the case of hospital buildings,
7        the remaining life is divided by 40 and this ratio is
8        multiplied by the replacement cost of the buildings to
9        obtain an estimated fair market value of buildings. If
10        a hospital building is older than 35 years, a
11        remaining life of 5 years for residual value is
12        assumed; and if a building is less than 8 years old, a
13        remaining life of 32 years is assumed.
14            (C) The estimated assessed value of the land
15        portion of the property shall be determined by
16        multiplying (i) the per square foot average of the
17        assessed values of three parcels of land (not
18        including farm land, and excluding the assessed value
19        of the improvements thereon) reasonably comparable to
20        the property, by (ii) the number of square feet
21        comprising the exempt portion of the property's land
22        square footage.
23        (3) The assessment factor, State equalization rate,
24    and tax rate (including any special factors such as
25    Enterprise Zones) used in calculating the estimated
26    property tax liability shall be for the most recent year

 

 

SB0157 Enrolled- 98 -LRB102 10128 HLH 16591 b

1    that is publicly available from the applicable chief
2    county assessment officer or officers at least 90 days
3    before the end of the hospital year.
4        (4) The method utilized to calculate estimated
5    property tax liability for purposes of this Section 15-86
6    shall not be utilized for the actual valuation,
7    assessment, or taxation of property pursuant to the
8    Property Tax Code.
9    (h) For the purpose of this Section, the following terms
10shall have the meanings set forth below:
11        (1) "Hospital" means any institution, place, building,
12    buildings on a campus, or other health care facility
13    located in Illinois that is licensed under the Hospital
14    Licensing Act and has a hospital owner.
15        (2) "Hospital owner" means a not-for-profit
16    corporation that is the titleholder of a hospital, or the
17    owner of the beneficial interest in an Illinois land trust
18    that is the titleholder of a hospital.
19        (3) "Hospital affiliate" means any corporation,
20    partnership, limited partnership, joint venture, limited
21    liability company, association or other organization,
22    other than a hospital owner, that directly or indirectly
23    controls, is controlled by, or is under common control
24    with one or more hospital owners and that supports, is
25    supported by, or acts in furtherance of the exempt health
26    care purposes of at least one of those hospital owners'

 

 

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1    hospitals.
2        (4) "Hospital system" means a hospital and one or more
3    other hospitals or hospital affiliates related by common
4    control or ownership.
5        (5) "Control" relating to hospital owners, hospital
6    affiliates, or hospital systems means possession, direct
7    or indirect, of the power to direct or cause the direction
8    of the management and policies of the entity, whether
9    through ownership of assets, membership interest, other
10    voting or governance rights, by contract or otherwise.
11        (6) "Hospital applicant" means a hospital owner or
12    hospital affiliate that files an application for an
13    exemption or renewal of exemption under this Section.
14        (7) "Relevant hospital entity" means (A) the hospital
15    owner, in the case of a hospital applicant that is a
16    hospital owner, and (B) at the election of a hospital
17    applicant that is a hospital affiliate, either (i) the
18    hospital affiliate or (ii) the hospital system to which
19    the hospital applicant belongs, including any hospitals or
20    hospital affiliates that are related by common control or
21    ownership.
22        (8) "Subject property" means property used for the
23    calculation under subsection (b) of this Section.
24        (9) "Hospital year" means the fiscal year of the
25    relevant hospital entity, or the fiscal year of one of the
26    hospital owners in the hospital system if the relevant

 

 

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1    hospital entity is a hospital system with members with
2    different fiscal years, that ends in the year for which
3    the exemption is sought.
4    (i) It is the intent of the General Assembly that any
5exemptions taken, granted, or renewed under this Section prior
6to the effective date of this amendatory Act of the 100th
7General Assembly are hereby validated.
8    (j) It is the intent of the General Assembly that the
9exemption under this Section applies on a continuous basis. If
10this amendatory Act of the 102nd General Assembly takes effect
11after July 1, 2022, any exemptions taken, granted, or renewed
12under this Section on or after July 1, 2022 and prior to the
13effective date of this amendatory Act of the 102nd General
14Assembly are hereby validated.
15    (k) This Section is exempt from the provisions of Section
163-55.
17(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 
18    Section 25-25. The Retailers' Occupation Tax Act is
19amended by changing Section 2-9 as follows:
 
20    (35 ILCS 120/2-9)
21    Sec. 2-9. Hospital exemption.
22    (a) Tangible Until July 1, 2022, tangible personal
23property sold to or used by a hospital owner that owns one or
24more hospitals licensed under the Hospital Licensing Act or

 

 

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1operated under the University of Illinois Hospital Act, or a
2hospital affiliate that is not already exempt under another
3provision of this Act and meets the criteria for an exemption
4under this Section, is exempt from taxation under this Act.
5    (b) A hospital owner or hospital affiliate satisfies the
6conditions for an exemption under this Section if the value of
7qualified services or activities listed in subsection (c) of
8this Section for the hospital year equals or exceeds the
9relevant hospital entity's estimated property tax liability,
10without regard to any property tax exemption granted under
11Section 15-86 of the Property Tax Code, for the calendar year
12in which exemption or renewal of exemption is sought. For
13purposes of making the calculations required by this
14subsection (b), if the relevant hospital entity is a hospital
15owner that owns more than one hospital, the value of the
16services or activities listed in subsection (c) shall be
17calculated on the basis of only those services and activities
18relating to the hospital that includes the subject property,
19and the relevant hospital entity's estimated property tax
20liability shall be calculated only with respect to the
21properties comprising that hospital. In the case of a
22multi-state hospital system or hospital affiliate, the value
23of the services or activities listed in subsection (c) shall
24be calculated on the basis of only those services and
25activities that occur in Illinois and the relevant hospital
26entity's estimated property tax liability shall be calculated

 

 

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1only with respect to its property located in Illinois.
2    (c) The following services and activities shall be
3considered for purposes of making the calculations required by
4subsection (b):
5        (1) Charity care. Free or discounted services provided
6    pursuant to the relevant hospital entity's financial
7    assistance policy, measured at cost, including discounts
8    provided under the Hospital Uninsured Patient Discount
9    Act.
10        (2) Health services to low-income and underserved
11    individuals. Other unreimbursed costs of the relevant
12    hospital entity for providing without charge, paying for,
13    or subsidizing goods, activities, or services for the
14    purpose of addressing the health of low-income or
15    underserved individuals. Those activities or services may
16    include, but are not limited to: financial or in-kind
17    support to affiliated or unaffiliated hospitals, hospital
18    affiliates, community clinics, or programs that treat
19    low-income or underserved individuals; paying for or
20    subsidizing health care professionals who care for
21    low-income or underserved individuals; providing or
22    subsidizing outreach or educational services to low-income
23    or underserved individuals for disease management and
24    prevention; free or subsidized goods, supplies, or
25    services needed by low-income or underserved individuals
26    because of their medical condition; and prenatal or

 

 

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1    childbirth outreach to low-income or underserved persons.
2        (3) Subsidy of State or local governments. Direct or
3    indirect financial or in-kind subsidies of State or local
4    governments by the relevant hospital entity that pay for
5    or subsidize activities or programs related to health care
6    for low-income or underserved individuals.
7        (4) Support for State health care programs for
8    low-income individuals. At the election of the hospital
9    applicant for each applicable year, either (A) 10% of
10    payments to the relevant hospital entity and any hospital
11    affiliate designated by the relevant hospital entity
12    (provided that such hospital affiliate's operations
13    provide financial or operational support for or receive
14    financial or operational support from the relevant
15    hospital entity) under Medicaid or other means-tested
16    programs, including, but not limited to, General
17    Assistance, the Covering ALL KIDS Health Insurance Act,
18    and the State Children's Health Insurance Program or (B)
19    the amount of subsidy provided by the relevant hospital
20    entity and any hospital affiliate designated by the
21    relevant hospital entity (provided that such hospital
22    affiliate's operations provide financial or operational
23    support for or receive financial or operational support
24    from the relevant hospital entity) to State or local
25    government in treating Medicaid recipients and recipients
26    of means-tested programs, including but not limited to

 

 

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1    General Assistance, the Covering ALL KIDS Health Insurance
2    Act, and the State Children's Health Insurance Program.
3    The amount of subsidy for purposes of this item (4) is
4    calculated in the same manner as unreimbursed costs are
5    calculated for Medicaid and other means-tested government
6    programs in the Schedule H of IRS Form 990 in effect on the
7    effective date of this amendatory Act of the 97th General
8    Assembly.
9        (5) Dual-eligible subsidy. The amount of subsidy
10    provided to government by treating dual-eligible
11    Medicare/Medicaid patients. The amount of subsidy for
12    purposes of this item (5) is calculated by multiplying the
13    relevant hospital entity's unreimbursed costs for
14    Medicare, calculated in the same manner as determined in
15    the Schedule H of IRS Form 990 in effect on the effective
16    date of this amendatory Act of the 97th General Assembly,
17    by the relevant hospital entity's ratio of dual-eligible
18    patients to total Medicare patients.
19        (6) Relief of the burden of government related to
20    health care. Except to the extent otherwise taken into
21    account in this subsection, the portion of unreimbursed
22    costs of the relevant hospital entity attributable to
23    providing, paying for, or subsidizing goods, activities,
24    or services that relieve the burden of government related
25    to health care for low-income individuals. Such activities
26    or services shall include, but are not limited to,

 

 

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1    providing emergency, trauma, burn, neonatal, psychiatric,
2    rehabilitation, or other special services; providing
3    medical education; and conducting medical research or
4    training of health care professionals. The portion of
5    those unreimbursed costs attributable to benefiting
6    low-income individuals shall be determined using the ratio
7    calculated by adding the relevant hospital entity's costs
8    attributable to charity care, Medicaid, other means-tested
9    government programs, Medicare patients with disabilities
10    under age 65, and dual-eligible Medicare/Medicaid patients
11    and dividing that total by the relevant hospital entity's
12    total costs. Such costs for the numerator and denominator
13    shall be determined by multiplying gross charges by the
14    cost to charge ratio taken from the hospital's most
15    recently filed Medicare cost report (CMS 2252-10
16    Worksheet, Part I). In the case of emergency services, the
17    ratio shall be calculated using costs (gross charges
18    multiplied by the cost to charge ratio taken from the
19    hospital's most recently filed Medicare cost report (CMS
20    2252-10 Worksheet, Part I)) of patients treated in the
21    relevant hospital entity's emergency department.
22        (7) Any other activity by the relevant hospital entity
23    that the Department determines relieves the burden of
24    government or addresses the health of low-income or
25    underserved individuals.
26    (d) The hospital applicant shall include information in

 

 

SB0157 Enrolled- 106 -LRB102 10128 HLH 16591 b

1its exemption application establishing that it satisfies the
2requirements of subsection (b). For purposes of making the
3calculations required by subsection (b), the hospital
4applicant may for each year elect to use either (1) the value
5of the services or activities listed in subsection (e) for the
6hospital year or (2) the average value of those services or
7activities for the 3 fiscal years ending with the hospital
8year. If the relevant hospital entity has been in operation
9for less than 3 completed fiscal years, then the latter
10calculation, if elected, shall be performed on a pro rata
11basis.
12    (e) For purposes of making the calculations required by
13this Section:
14        (1) particular services or activities eligible for
15    consideration under any of the paragraphs (1) through (7)
16    of subsection (c) may not be counted under more than one of
17    those paragraphs; and
18        (2) the amount of unreimbursed costs and the amount of
19    subsidy shall not be reduced by restricted or unrestricted
20    payments received by the relevant hospital entity as
21    contributions deductible under Section 170(a) of the
22    Internal Revenue Code.
23    (f) (Blank).
24    (g) Estimation of Exempt Property Tax Liability. The
25estimated property tax liability used for the determination in
26subsection (b) shall be calculated as follows:

 

 

SB0157 Enrolled- 107 -LRB102 10128 HLH 16591 b

1        (1) "Estimated property tax liability" means the
2    estimated dollar amount of property tax that would be
3    owed, with respect to the exempt portion of each of the
4    relevant hospital entity's properties that are already
5    fully or partially exempt, or for which an exemption in
6    whole or in part is currently being sought, and then
7    aggregated as applicable, as if the exempt portion of
8    those properties were subject to tax, calculated with
9    respect to each such property by multiplying:
10            (A) the lesser of (i) the actual assessed value,
11        if any, of the portion of the property for which an
12        exemption is sought or (ii) an estimated assessed
13        value of the exempt portion of such property as
14        determined in item (2) of this subsection (g), by
15            (B) the applicable State equalization rate
16        (yielding the equalized assessed value), by
17            (C) the applicable tax rate.
18        (2) The estimated assessed value of the exempt portion
19    of the property equals the sum of (i) the estimated fair
20    market value of buildings on the property, as determined
21    in accordance with subparagraphs (A) and (B) of this item
22    (2), multiplied by the applicable assessment factor, and
23    (ii) the estimated assessed value of the land portion of
24    the property, as determined in accordance with
25    subparagraph (C).
26            (A) The "estimated fair market value of buildings

 

 

SB0157 Enrolled- 108 -LRB102 10128 HLH 16591 b

1        on the property" means the replacement value of any
2        exempt portion of buildings on the property, minus
3        depreciation, determined utilizing the cost
4        replacement method whereby the exempt square footage
5        of all such buildings is multiplied by the replacement
6        cost per square foot for Class A Average building
7        found in the most recent edition of the Marshall &
8        Swift Valuation Services Manual, adjusted by any
9        appropriate current cost and local multipliers.
10            (B) Depreciation, for purposes of calculating the
11        estimated fair market value of buildings on the
12        property, is applied by utilizing a weighted mean life
13        for the buildings based on original construction and
14        assuming a 40-year life for hospital buildings and the
15        applicable life for other types of buildings as
16        specified in the American Hospital Association
17        publication "Estimated Useful Lives of Depreciable
18        Hospital Assets". In the case of hospital buildings,
19        the remaining life is divided by 40 and this ratio is
20        multiplied by the replacement cost of the buildings to
21        obtain an estimated fair market value of buildings. If
22        a hospital building is older than 35 years, a
23        remaining life of 5 years for residual value is
24        assumed; and if a building is less than 8 years old, a
25        remaining life of 32 years is assumed.
26            (C) The estimated assessed value of the land

 

 

SB0157 Enrolled- 109 -LRB102 10128 HLH 16591 b

1        portion of the property shall be determined by
2        multiplying (i) the per square foot average of the
3        assessed values of three parcels of land (not
4        including farm land, and excluding the assessed value
5        of the improvements thereon) reasonably comparable to
6        the property, by (ii) the number of square feet
7        comprising the exempt portion of the property's land
8        square footage.
9        (3) The assessment factor, State equalization rate,
10    and tax rate (including any special factors such as
11    Enterprise Zones) used in calculating the estimated
12    property tax liability shall be for the most recent year
13    that is publicly available from the applicable chief
14    county assessment officer or officers at least 90 days
15    before the end of the hospital year.
16        (4) The method utilized to calculate estimated
17    property tax liability for purposes of this Section 15-86
18    shall not be utilized for the actual valuation,
19    assessment, or taxation of property pursuant to the
20    Property Tax Code.
21    (h) For the purpose of this Section, the following terms
22shall have the meanings set forth below:
23        (1) "Hospital" means any institution, place, building,
24    buildings on a campus, or other health care facility
25    located in Illinois that is licensed under the Hospital
26    Licensing Act and has a hospital owner.

 

 

SB0157 Enrolled- 110 -LRB102 10128 HLH 16591 b

1        (2) "Hospital owner" means a not-for-profit
2    corporation that is the titleholder of a hospital, or the
3    owner of the beneficial interest in an Illinois land trust
4    that is the titleholder of a hospital.
5        (3) "Hospital affiliate" means any corporation,
6    partnership, limited partnership, joint venture, limited
7    liability company, association or other organization,
8    other than a hospital owner, that directly or indirectly
9    controls, is controlled by, or is under common control
10    with one or more hospital owners and that supports, is
11    supported by, or acts in furtherance of the exempt health
12    care purposes of at least one of those hospital owners'
13    hospitals.
14        (4) "Hospital system" means a hospital and one or more
15    other hospitals or hospital affiliates related by common
16    control or ownership.
17        (5) "Control" relating to hospital owners, hospital
18    affiliates, or hospital systems means possession, direct
19    or indirect, of the power to direct or cause the direction
20    of the management and policies of the entity, whether
21    through ownership of assets, membership interest, other
22    voting or governance rights, by contract or otherwise.
23        (6) "Hospital applicant" means a hospital owner or
24    hospital affiliate that files an application for an
25    exemption or renewal of exemption under this Section.
26        (7) "Relevant hospital entity" means (A) the hospital

 

 

SB0157 Enrolled- 111 -LRB102 10128 HLH 16591 b

1    owner, in the case of a hospital applicant that is a
2    hospital owner, and (B) at the election of a hospital
3    applicant that is a hospital affiliate, either (i) the
4    hospital affiliate or (ii) the hospital system to which
5    the hospital applicant belongs, including any hospitals or
6    hospital affiliates that are related by common control or
7    ownership.
8        (8) "Subject property" means property used for the
9    calculation under subsection (b) of this Section.
10        (9) "Hospital year" means the fiscal year of the
11    relevant hospital entity, or the fiscal year of one of the
12    hospital owners in the hospital system if the relevant
13    hospital entity is a hospital system with members with
14    different fiscal years, that ends in the year for which
15    the exemption is sought.
16    (i) It is the intent of the General Assembly that any
17exemptions taken, granted, or renewed under this Section prior
18to the effective date of this amendatory Act of the 100th
19General Assembly are hereby validated.
20    (j) It is the intent of the General Assembly that the
21exemption under this Section applies on a continuous basis. If
22this amendatory Act of the 102nd General Assembly takes effect
23after July 1, 2022, any exemptions taken, granted, or renewed
24under this Section on or after July 1, 2022 and prior to the
25effective date of this amendatory Act of the 102nd General
26Assembly are hereby validated.

 

 

SB0157 Enrolled- 112 -LRB102 10128 HLH 16591 b

1    (k) This Section is exempt from the provisions of Section
22-70.
3(Source: P.A. 99-143, eff. 7-27-15; 100-1181, eff. 3-8-19.)
 
4
ARTICLE 30. ORGAN DONATION

 
5    Section 30-5. The Illinois Income Tax Act is amended by
6changing Section 704A as follows:
 
7    (35 ILCS 5/704A)
8    Sec. 704A. Employer's return and payment of tax withheld.
9    (a) In general, every employer who deducts and withholds
10or is required to deduct and withhold tax under this Act on or
11after January 1, 2008 shall make those payments and returns as
12provided in this Section.
13    (b) Returns. Every employer shall, in the form and manner
14required by the Department, make returns with respect to taxes
15withheld or required to be withheld under this Article 7 for
16each quarter beginning on or after January 1, 2008, on or
17before the last day of the first month following the close of
18that quarter.
19    (c) Payments. With respect to amounts withheld or required
20to be withheld on or after January 1, 2008:
21        (1) Semi-weekly payments. For each calendar year, each
22    employer who withheld or was required to withhold more
23    than $12,000 during the one-year period ending on June 30

 

 

SB0157 Enrolled- 113 -LRB102 10128 HLH 16591 b

1    of the immediately preceding calendar year, payment must
2    be made:
3            (A) on or before each Friday of the calendar year,
4        for taxes withheld or required to be withheld on the
5        immediately preceding Saturday, Sunday, Monday, or
6        Tuesday;
7            (B) on or before each Wednesday of the calendar
8        year, for taxes withheld or required to be withheld on
9        the immediately preceding Wednesday, Thursday, or
10        Friday.
11        Beginning with calendar year 2011, payments made under
12    this paragraph (1) of subsection (c) must be made by
13    electronic funds transfer.
14        (2) Semi-weekly payments. Any employer who withholds
15    or is required to withhold more than $12,000 in any
16    quarter of a calendar year is required to make payments on
17    the dates set forth under item (1) of this subsection (c)
18    for each remaining quarter of that calendar year and for
19    the subsequent calendar year.
20        (3) Monthly payments. Each employer, other than an
21    employer described in items (1) or (2) of this subsection,
22    shall pay to the Department, on or before the 15th day of
23    each month the taxes withheld or required to be withheld
24    during the immediately preceding month.
25        (4) Payments with returns. Each employer shall pay to
26    the Department, on or before the due date for each return

 

 

SB0157 Enrolled- 114 -LRB102 10128 HLH 16591 b

1    required to be filed under this Section, any tax withheld
2    or required to be withheld during the period for which the
3    return is due and not previously paid to the Department.
4    (d) Regulatory authority. The Department may, by rule:
5        (1) Permit employers, in lieu of the requirements of
6    subsections (b) and (c), to file annual returns due on or
7    before January 31 of the year for taxes withheld or
8    required to be withheld during the previous calendar year
9    and, if the aggregate amounts required to be withheld by
10    the employer under this Article 7 (other than amounts
11    required to be withheld under Section 709.5) do not exceed
12    $1,000 for the previous calendar year, to pay the taxes
13    required to be shown on each such return no later than the
14    due date for such return.
15        (2) Provide that any payment required to be made under
16    subsection (c)(1) or (c)(2) is deemed to be timely to the
17    extent paid by electronic funds transfer on or before the
18    due date for deposit of federal income taxes withheld
19    from, or federal employment taxes due with respect to, the
20    wages from which the Illinois taxes were withheld.
21        (3) Designate one or more depositories to which
22    payment of taxes required to be withheld under this
23    Article 7 must be paid by some or all employers.
24        (4) Increase the threshold dollar amounts at which
25    employers are required to make semi-weekly payments under
26    subsection (c)(1) or (c)(2).

 

 

SB0157 Enrolled- 115 -LRB102 10128 HLH 16591 b

1    (e) Annual return and payment. Every employer who deducts
2and withholds or is required to deduct and withhold tax from a
3person engaged in domestic service employment, as that term is
4defined in Section 3510 of the Internal Revenue Code, may
5comply with the requirements of this Section with respect to
6such employees by filing an annual return and paying the taxes
7required to be deducted and withheld on or before the 15th day
8of the fourth month following the close of the employer's
9taxable year. The Department may allow the employer's return
10to be submitted with the employer's individual income tax
11return or to be submitted with a return due from the employer
12under Section 1400.2 of the Unemployment Insurance Act.
13    (f) Magnetic media and electronic filing. With respect to
14taxes withheld in calendar years prior to 2017, any W-2 Form
15that, under the Internal Revenue Code and regulations
16promulgated thereunder, is required to be submitted to the
17Internal Revenue Service on magnetic media or electronically
18must also be submitted to the Department on magnetic media or
19electronically for Illinois purposes, if required by the
20Department.
21    With respect to taxes withheld in 2017 and subsequent
22calendar years, the Department may, by rule, require that any
23return (including any amended return) under this Section and
24any W-2 Form that is required to be submitted to the Department
25must be submitted on magnetic media or electronically.
26    The due date for submitting W-2 Forms shall be as

 

 

SB0157 Enrolled- 116 -LRB102 10128 HLH 16591 b

1prescribed by the Department by rule.
2    (g) For amounts deducted or withheld after December 31,
32009, a taxpayer who makes an election under subsection (f) of
4Section 5-15 of the Economic Development for a Growing Economy
5Tax Credit Act for a taxable year shall be allowed a credit
6against payments due under this Section for amounts withheld
7during the first calendar year beginning after the end of that
8taxable year equal to the amount of the credit for the
9incremental income tax attributable to full-time employees of
10the taxpayer awarded to the taxpayer by the Department of
11Commerce and Economic Opportunity under the Economic
12Development for a Growing Economy Tax Credit Act for the
13taxable year and credits not previously claimed and allowed to
14be carried forward under Section 211(4) of this Act as
15provided in subsection (f) of Section 5-15 of the Economic
16Development for a Growing Economy Tax Credit Act. The credit
17or credits may not reduce the taxpayer's obligation for any
18payment due under this Section to less than zero. If the amount
19of the credit or credits exceeds the total payments due under
20this Section with respect to amounts withheld during the
21calendar year, the excess may be carried forward and applied
22against the taxpayer's liability under this Section in the
23succeeding calendar years as allowed to be carried forward
24under paragraph (4) of Section 211 of this Act. The credit or
25credits shall be applied to the earliest year for which there
26is a tax liability. If there are credits from more than one

 

 

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1taxable year that are available to offset a liability, the
2earlier credit shall be applied first. Each employer who
3deducts and withholds or is required to deduct and withhold
4tax under this Act and who retains income tax withholdings
5under subsection (f) of Section 5-15 of the Economic
6Development for a Growing Economy Tax Credit Act must make a
7return with respect to such taxes and retained amounts in the
8form and manner that the Department, by rule, requires and pay
9to the Department or to a depositary designated by the
10Department those withheld taxes not retained by the taxpayer.
11For purposes of this subsection (g), the term taxpayer shall
12include taxpayer and members of the taxpayer's unitary
13business group as defined under paragraph (27) of subsection
14(a) of Section 1501 of this Act. This Section is exempt from
15the provisions of Section 250 of this Act. No credit awarded
16under the Economic Development for a Growing Economy Tax
17Credit Act for agreements entered into on or after January 1,
182015 may be credited against payments due under this Section.
19    (g-1) For amounts deducted or withheld after December 31,
202024, a taxpayer who makes an election under the Reimagining
21Electric Vehicles in Illinois Act shall be allowed a credit
22against payments due under this Section for amounts withheld
23during the first quarterly reporting period beginning after
24the certificate is issued equal to the portion of the REV
25Illinois Credit attributable to the incremental income tax
26attributable to new employees and retained employees as

 

 

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1certified by the Department of Commerce and Economic
2Opportunity pursuant to an agreement with the taxpayer under
3the Reimagining Electric Vehicles in Illinois Act for the
4taxable year. The credit or credits may not reduce the
5taxpayer's obligation for any payment due under this Section
6to less than zero. If the amount of the credit or credits
7exceeds the total payments due under this Section with respect
8to amounts withheld during the quarterly reporting period, the
9excess may be carried forward and applied against the
10taxpayer's liability under this Section in the succeeding
11quarterly reporting period as allowed to be carried forward
12under paragraph (4) of Section 211 of this Act. The credit or
13credits shall be applied to the earliest quarterly reporting
14period for which there is a tax liability. If there are credits
15from more than one quarterly reporting period that are
16available to offset a liability, the earlier credit shall be
17applied first. Each employer who deducts and withholds or is
18required to deduct and withhold tax under this Act and who
19retains income tax withholdings this subsection must make a
20return with respect to such taxes and retained amounts in the
21form and manner that the Department, by rule, requires and pay
22to the Department or to a depositary designated by the
23Department those withheld taxes not retained by the taxpayer.
24For purposes of this subsection (g-1), the term taxpayer shall
25include taxpayer and members of the taxpayer's unitary
26business group as defined under paragraph (27) of subsection

 

 

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1(a) of Section 1501 of this Act. This Section is exempt from
2the provisions of Section 250 of this Act.
3    (h) An employer may claim a credit against payments due
4under this Section for amounts withheld during the first
5calendar year ending after the date on which a tax credit
6certificate was issued under Section 35 of the Small Business
7Job Creation Tax Credit Act. The credit shall be equal to the
8amount shown on the certificate, but may not reduce the
9taxpayer's obligation for any payment due under this Section
10to less than zero. If the amount of the credit exceeds the
11total payments due under this Section with respect to amounts
12withheld during the calendar year, the excess may be carried
13forward and applied against the taxpayer's liability under
14this Section in the 5 succeeding calendar years. The credit
15shall be applied to the earliest year for which there is a tax
16liability. If there are credits from more than one calendar
17year that are available to offset a liability, the earlier
18credit shall be applied first. This Section is exempt from the
19provisions of Section 250 of this Act.
20    (i) Each employer with 50 or fewer full-time equivalent
21employees during the reporting period may claim a credit
22against the payments due under this Section for each qualified
23employee in an amount equal to the maximum credit allowable.
24The credit may be taken against payments due for reporting
25periods that begin on or after January 1, 2020, and end on or
26before December 31, 2027. An employer may not claim a credit

 

 

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1for an employee who has worked fewer than 90 consecutive days
2immediately preceding the reporting period; however, such
3credits may accrue during that 90-day period and be claimed
4against payments under this Section for future reporting
5periods after the employee has worked for the employer at
6least 90 consecutive days. In no event may the credit exceed
7the employer's liability for the reporting period. Each
8employer who deducts and withholds or is required to deduct
9and withhold tax under this Act and who retains income tax
10withholdings under this subsection must make a return with
11respect to such taxes and retained amounts in the form and
12manner that the Department, by rule, requires and pay to the
13Department or to a depositary designated by the Department
14those withheld taxes not retained by the employer.
15    For each reporting period, the employer may not claim a
16credit or credits for more employees than the number of
17employees making less than the minimum or reduced wage for the
18current calendar year during the last reporting period of the
19preceding calendar year. Notwithstanding any other provision
20of this subsection, an employer shall not be eligible for
21credits for a reporting period unless the average wage paid by
22the employer per employee for all employees making less than
23$55,000 during the reporting period is greater than the
24average wage paid by the employer per employee for all
25employees making less than $55,000 during the same reporting
26period of the prior calendar year.

 

 

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1    For purposes of this subsection (i):
2    "Compensation paid in Illinois" has the meaning ascribed
3to that term under Section 304(a)(2)(B) of this Act.
4    "Employer" and "employee" have the meaning ascribed to
5those terms in the Minimum Wage Law, except that "employee"
6also includes employees who work for an employer with fewer
7than 4 employees. Employers that operate more than one
8establishment pursuant to a franchise agreement or that
9constitute members of a unitary business group shall aggregate
10their employees for purposes of determining eligibility for
11the credit.
12    "Full-time equivalent employees" means the ratio of the
13number of paid hours during the reporting period and the
14number of working hours in that period.
15    "Maximum credit" means the percentage listed below of the
16difference between the amount of compensation paid in Illinois
17to employees who are paid not more than the required minimum
18wage reduced by the amount of compensation paid in Illinois to
19employees who were paid less than the current required minimum
20wage during the reporting period prior to each increase in the
21required minimum wage on January 1. If an employer pays an
22employee more than the required minimum wage and that employee
23previously earned less than the required minimum wage, the
24employer may include the portion that does not exceed the
25required minimum wage as compensation paid in Illinois to
26employees who are paid not more than the required minimum

 

 

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1wage.
2        (1) 25% for reporting periods beginning on or after
3    January 1, 2020 and ending on or before December 31, 2020;
4        (2) 21% for reporting periods beginning on or after
5    January 1, 2021 and ending on or before December 31, 2021;
6        (3) 17% for reporting periods beginning on or after
7    January 1, 2022 and ending on or before December 31, 2022;
8        (4) 13% for reporting periods beginning on or after
9    January 1, 2023 and ending on or before December 31, 2023;
10        (5) 9% for reporting periods beginning on or after
11    January 1, 2024 and ending on or before December 31, 2024;
12        (6) 5% for reporting periods beginning on or after
13    January 1, 2025 and ending on or before December 31, 2025.
14    The amount computed under this subsection may continue to
15be claimed for reporting periods beginning on or after January
161, 2026 and:
17        (A) ending on or before December 31, 2026 for
18    employers with more than 5 employees; or
19        (B) ending on or before December 31, 2027 for
20    employers with no more than 5 employees.
21    "Qualified employee" means an employee who is paid not
22more than the required minimum wage and has an average wage
23paid per hour by the employer during the reporting period
24equal to or greater than his or her average wage paid per hour
25by the employer during each reporting period for the
26immediately preceding 12 months. A new qualified employee is

 

 

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1deemed to have earned the required minimum wage in the
2preceding reporting period.
3    "Reporting period" means the quarter for which a return is
4required to be filed under subsection (b) of this Section.
5    (j) For reporting periods beginning on or after January 1,
62023, if a private employer grants all of its employees the
7option of taking a paid leave of absence of at least 30 days
8for the purpose of serving as an organ donor or bone marrow
9donor, then the private employer may take a credit against the
10payments due under this Section in an amount equal to the
11amount withheld under this Section with respect to wages paid
12while the employee is on organ donation leave, not to exceed
13$1,000 in withholdings for each employee who takes organ
14donation leave. To be eligible for the credit, such a leave of
15absence must be taken without loss of pay, vacation time,
16compensatory time, personal days, or sick time for at least
17the first 30 days of the leave of absence. The private employer
18shall adopt rules governing organ donation leave, including
19rules that (i) establish conditions and procedures for
20requesting and approving leave and (ii) require medical
21documentation of the proposed organ or bone marrow donation
22before leave is approved by the private employer. A private
23employer must provide, in the manner required by the
24Department, documentation from the employee's medical
25provider, which the private employer receives from the
26employee, that verifies the employee's organ donation. The

 

 

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1private employer must also provide, in the manner required by
2the Department, documentation that shows that a qualifying
3organ donor leave policy was in place and offered to all
4qualifying employees at the time the leave was taken. For the
5private employer to receive the tax credit, the employee
6taking organ donor leave must allow for the applicable medical
7records to be disclosed to the Department. If the private
8employer cannot provide the required documentation to the
9Department, then the private employer is ineligible for the
10credit under this Section. A private employer must also
11provide, in the form required by the Department, any
12additional documentation or information required by the
13Department to administer the credit under this Section. The
14credit under this subsection (j) shall be taken within one
15year after the date upon which the organ donation leave
16begins. If the leave taken spans into a second tax year, the
17employer qualifies for the allowable credit in the later of
18the 2 years. If the amount of credit exceeds the tax liability
19for the year, the excess may be carried and applied to the tax
20liability for the 3 taxable years following the excess credit
21year. The tax credit shall be applied to the earliest year for
22which there is a tax liability. If there are credits for more
23than one year that are available to offset liability, the
24earlier credit shall be applied first.
25    Nothing in this subsection (j) prohibits a private
26employer from providing an unpaid leave of absence to its

 

 

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1employees for the purpose of serving as an organ donor or bone
2marrow donor; however, if the employer's policy provides for
3fewer than 30 days of paid leave for organ or bone marrow
4donation, then the employer shall not be eligible for the
5credit under this Section.
6    As used in this subsection (j):
7        "Organ" means any biological tissue of the human body
8    that may be donated by a living donor, including, but not
9    limited to, the kidney, liver, lung, pancreas, intestine,
10    bone, skin, or any subpart of those organs.
11        "Organ donor" means a person from whose body an organ
12    is taken to be transferred to the body of another person.
13        "Private employer" means a sole proprietorship,
14    corporation, partnership, limited liability company, or
15    other entity with one or more employees. "Private
16    employer" does not include a municipality, county, State
17    agency, or other public employer.
18    This subsection (j) is exempt from the provisions of
19Section 250 of this Act.
20(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21.)
 
21
ARTICLE 40. TAX REBATES

 
22    Section 40-3. The Illinois Administrative Procedure Act is
23amended by adding Section 5-45.21 as follows:
 

 

 

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1    (5 ILCS 100/5-45.21 new)
2    Sec. 5-45.21. Emergency rulemaking. To provide for the
3expeditious and timely implementation of this amendatory Act
4of the 102nd General Assembly, emergency rules implementing
5Sections 208.5 and 212.1 of the Illinois Income Tax Act may be
6adopted in accordance with Section 5-45 by the Department of
7Revenue. The adoption of emergency rules authorized by Section
85-45 and this Section is deemed to be necessary for the public
9interest, safety, and welfare.
10    This Section is repealed one year after the effective date
11of this amendatory Act of the 102nd General Assembly.
 
12    Section 40-5. The State Finance Act is amended by changing
13Section 8g-1 as follows:
 
14    (30 ILCS 105/8g-1)
15    Sec. 8g-1. Fund transfers.
16    (a) (Blank).
17    (b) (Blank).
18    (c) (Blank).
19    (d) (Blank).
20    (e) (Blank).
21    (f) (Blank).
22    (g) (Blank).
23    (h) (Blank).
24    (i) (Blank).

 

 

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1    (j) (Blank).
2    (k) (Blank).
3    (l) (Blank).
4    (m) (Blank).
5    (n) (Blank).
6    (o) (Blank).
7    (p) (Blank).
8    (q) (Blank).
9    (r) (Blank).
10    (s) (Blank).
11    (t) (Blank).
12    (u) In addition to any other transfers that may be
13provided for by law, on July 1, 2021, or as soon thereafter as
14practical, only as directed by the Director of the Governor's
15Office of Management and Budget, the State Comptroller shall
16direct and the State Treasurer shall transfer the sum of
17$5,000,000 from the General Revenue Fund to the DoIT Special
18Projects Fund, and on June 1, 2022, or as soon thereafter as
19practical, but no later than June 30, 2022, the State
20Comptroller shall direct and the State Treasurer shall
21transfer the sum so transferred from the DoIT Special Projects
22Fund to the General Revenue Fund.
23    (v) In addition to any other transfers that may be
24provided for by law, on July 1, 2021, or as soon thereafter as
25practical, the State Comptroller shall direct and the State
26Treasurer shall transfer the sum of $500,000 from the General

 

 

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1Revenue Fund to the Governor's Administrative Fund.
2    (w) In addition to any other transfers that may be
3provided for by law, on July 1, 2021, or as soon thereafter as
4practical, the State Comptroller shall direct and the State
5Treasurer shall transfer the sum of $500,000 from the General
6Revenue Fund to the Grant Accountability and Transparency
7Fund.
8    (x) In addition to any other transfers that may be
9provided for by law, at a time or times during Fiscal Year 2022
10as directed by the Governor, the State Comptroller shall
11direct and the State Treasurer shall transfer up to a total of
12$20,000,000 from the General Revenue Fund to the Illinois
13Sports Facilities Fund to be credited to the Advance Account
14within the Fund.
15    (y) In addition to any other transfers that may be
16provided for by law, on June 15, 2021, or as soon thereafter as
17practical, but no later than June 30, 2021, the State
18Comptroller shall direct and the State Treasurer shall
19transfer the sum of $100,000,000 from the General Revenue Fund
20to the Technology Management Revolving Fund.
21    (z) In addition to any other transfers that may be
22provided by law, on the effective date of this amendatory Act
23of the 102nd General Assembly, or as soon thereafter as
24practical, but no later than June 30, 2022, the State
25Comptroller shall direct and the State Treasurer shall
26transfer the sum of $685,000,000 from the General Revenue Fund

 

 

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1to the Income Tax Refund Fund. Moneys from this transfer shall
2be used for the purpose of making the one-time rebate payments
3provided under Section 212.1 of the Illinois Income Tax Act.
4    (aa) In addition to any other transfers that may be
5provided by law, beginning on the effective date of this
6amendatory Act of the 102nd General Assembly and until
7December 31, 2023, at the direction of the Department of
8Revenue, the State Comptroller shall direct and the State
9Treasurer shall transfer from the General Revenue Fund to the
10Income Tax Refund Fund any amounts needed beyond the amounts
11transferred in subsection (z) to make payments of the one-time
12rebate payments provided under Section 212.1 of the Illinois
13Income Tax Act.
14(Source: P.A. 101-10, eff. 6-5-19; 101-636, eff. 6-10-20;
15102-16, eff. 6-17-21.)
 
16    Section 40-10. The Illinois Income Tax Act is amended by
17changing Section 901 and by adding Sections 208.5 and 212.1 as
18follows:
 
19    (35 ILCS 5/208.5 new)
20    Sec. 208.5. Residential real estate tax rebate.
21    (a) The Department shall pay a one-time rebate to every
22individual taxpayer who files with the Department, on or
23before October 17, 2022, an Illinois income tax return for tax
24year 2021 and who qualifies, in that tax year, under rules

 

 

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1adopted by the Department, for the income tax credit provided
2under Section 208 of this Act. The amount of the one-time
3rebate provided under this Section shall be the lesser of: (1)
4the amount of the credit provided under Section 208 for tax
5year 2021, including any amounts that would otherwise reduce a
6taxpayer's liability to less than zero, or (2) $300 per
7principal residence. The Department shall develop a process to
8claim a rebate for taxpayers who otherwise would be eligible
9for the rebate under this Section but who did not have an
10obligation to file a 2021 Illinois income tax return because
11their exemption allowance exceeded their Illinois base income.
12    (b) On the effective date of this amendatory Act of the
13102nd General Assembly, or as soon thereafter as practical,
14but no later than June 30, 2022, the State Comptroller shall
15direct and the State Treasurer shall transfer the sum of
16$470,000,000 from the General Revenue Fund to the Income Tax
17Refund Fund.
18    (c) On July 1, 2022, or as soon thereafter as practical,
19the State Comptroller shall direct and the State Treasurer
20shall transfer the sum of $50,000,000 from the General Revenue
21Fund to the Income Tax Refund Fund.
22    (d) In addition to any other transfers that may be
23provided for by law, beginning on the effective date of this
24amendatory Act of the 102nd General Assembly and until June
2530, 2023, the Director may certify additional transfer amounts
26needed beyond the amounts specified in subsections (b) and

 

 

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1(c). The State Comptroller shall direct and the State
2Treasurer shall transfer the amounts certified by the Director
3from the General Revenue Fund to the Income Tax Refund Fund.
4    (e) The one-time rebate payments provided under this
5Section shall be paid from the Income Tax Refund Fund.
6    (f) Beginning on July 5, 2022, the Department shall
7certify to the Comptroller the names of the taxpayers who are
8eligible for a one-time rebate under this Section, the amounts
9of those rebates, and any other information that the
10Comptroller requires to direct the payment of the rebates
11provided under this Section to taxpayers.
12    (g) The amount of a rebate under this Section shall not be
13included in the taxpayer's income or resources for the
14purposes of determining eligibility or benefit level in any
15means-tested benefit program administered by a governmental
16entity unless required by federal law.
17    (h) Notwithstanding any other law to the contrary, the
18rebates shall not be subject to offset by the Comptroller
19against any liability owed either to the State or to any unit
20of local government.
21    (i) This Section is repealed on January 1, 2024.
 
22    (35 ILCS 5/212.1 new)
23    Sec. 212.1. Individual income tax rebates.
24    (a) Each taxpayer who files an individual income tax
25return under this Act, on or before October 17, 2022, for the

 

 

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1taxable year that began on January 1, 2021 and whose adjusted
2gross income for the taxable year is less than (i) $400,000, in
3the case of spouses filing a joint federal tax return, or (ii)
4$200,000, in the case of all other taxpayers, is entitled to a
5one-time rebate under this Section. The amount of the rebate
6shall be $50 for single filers and $100 for spouses filing a
7joint return, plus an additional $100 for each person who is
8claimed as a dependent, up to 3 dependents, on the taxpayer's
9federal income tax return for the taxable year that began on
10January 1, 2021. A taxpayer who files an individual income tax
11return under this Act for the taxable year that began on
12January 1, 2021, and who is claimed as a dependent on another
13individual's return for that year, is ineligible for the
14rebate provided under this Section. Spouses who qualify for a
15rebate under this Section and who file a joint return shall be
16treated as a single taxpayer for the purposes of the rebate
17under this Section. For a part-year resident, the amount of
18the rebate under this Section shall be in proportion to the
19amount of the taxpayer's income that is attributable to this
20State for the taxable year that began on January 1, 2021.
21Taxpayers who were non-residents for the taxable year that
22began on January 1, 2021 are not entitled to a rebate under
23this Section.
24    (b) Beginning on July 5, 2022, the Department shall
25certify to the Comptroller the names of the taxpayers who are
26eligible for a one-time rebate under this Section, the amounts

 

 

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1of those rebates, and any other information that the
2Comptroller requires to direct the payment of the rebates
3provided under this Section to taxpayers.
4    (c) If a taxpayer files an amended return indicating that
5the taxpayer is entitled to a rebate under this Section that
6the taxpayer did not receive, or indicating that the taxpayer
7did not receive the full rebate amount to which the taxpayer is
8entitled, then the rebate shall be processed in the same
9manner as a claim for refund under Article 9. If the taxpayer
10files an amended return indicating that the taxpayer received
11a rebate under this Section to which the taxpayer is not
12entitled, then the Department shall issue a notice of
13deficiency as provided in Article 9.
14    (d) The Department shall make the rebate payments
15authorized by this Section from the Income Tax Refund Fund.
16    (e) The amount of a rebate under this Section shall not be
17included in the taxpayer's income or resources for the
18purposes of determining eligibility or benefit level in any
19means-tested benefit program administered by a governmental
20entity unless required by federal law.
21    (f) Nothing in this Section prevents a taxpayer from
22receiving the earned income tax credit and the rebate under
23this Section for the same taxable year.
24    (g) Notwithstanding any other law to the contrary, the
25rebates shall not be subject to offset by the Comptroller
26against any liability owed either to the State or to any unit

 

 

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1of local government.
2    (h) The Department shall adopt rules for the
3implementation of this Section, including emergency rules
4under Section 5-45.21 of the Illinois Administrative Procedure
5Act.
6    (i) This Section is repealed one year after the effective
7date of this amendatory Act of the 102nd General Assembly.
 
8    (35 ILCS 5/901)
9    Sec. 901. Collection authority.
10    (a) In general. The Department shall collect the taxes
11imposed by this Act. The Department shall collect certified
12past due child support amounts under Section 2505-650 of the
13Department of Revenue Law of the Civil Administrative Code of
14Illinois. Except as provided in subsections (b), (c), (e),
15(f), (g), and (h) of this Section, money collected pursuant to
16subsections (a) and (b) of Section 201 of this Act shall be
17paid into the General Revenue Fund in the State treasury;
18money collected pursuant to subsections (c) and (d) of Section
19201 of this Act shall be paid into the Personal Property Tax
20Replacement Fund, a special fund in the State Treasury; and
21money collected under Section 2505-650 of the Department of
22Revenue Law of the Civil Administrative Code of Illinois shall
23be paid into the Child Support Enforcement Trust Fund, a
24special fund outside the State Treasury, or to the State
25Disbursement Unit established under Section 10-26 of the

 

 

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1Illinois Public Aid Code, as directed by the Department of
2Healthcare and Family Services.
3    (b) Local Government Distributive Fund. Beginning August
41, 2017, the Treasurer shall transfer each month from the
5General Revenue Fund to the Local Government Distributive Fund
6an amount equal to the sum of: (i) 6.06% (10% of the ratio of
7the 3% individual income tax rate prior to 2011 to the 4.95%
8individual income tax rate after July 1, 2017) of the net
9revenue realized from the tax imposed by subsections (a) and
10(b) of Section 201 of this Act upon individuals, trusts, and
11estates during the preceding month; (ii) 6.85% (10% of the
12ratio of the 4.8% corporate income tax rate prior to 2011 to
13the 7% corporate income tax rate after July 1, 2017) of the net
14revenue realized from the tax imposed by subsections (a) and
15(b) of Section 201 of this Act upon corporations during the
16preceding month; and (iii) beginning February 1, 2022, 6.06%
17of the net revenue realized from the tax imposed by subsection
18(p) of Section 201 of this Act upon electing pass-through
19entities. Net revenue realized for a month shall be defined as
20the revenue from the tax imposed by subsections (a) and (b) of
21Section 201 of this Act which is deposited in the General
22Revenue Fund, the Education Assistance Fund, the Income Tax
23Surcharge Local Government Distributive Fund, the Fund for the
24Advancement of Education, and the Commitment to Human Services
25Fund during the month minus the amount paid out of the General
26Revenue Fund in State warrants during that same month as

 

 

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1refunds to taxpayers for overpayment of liability under the
2tax imposed by subsections (a) and (b) of Section 201 of this
3Act.
4    Notwithstanding any provision of law to the contrary,
5beginning on July 6, 2017 (the effective date of Public Act
6100-23), those amounts required under this subsection (b) to
7be transferred by the Treasurer into the Local Government
8Distributive Fund from the General Revenue Fund shall be
9directly deposited into the Local Government Distributive Fund
10as the revenue is realized from the tax imposed by subsections
11(a) and (b) of Section 201 of this Act.
12    (c) Deposits Into Income Tax Refund Fund.
13        (1) Beginning on January 1, 1989 and thereafter, the
14    Department shall deposit a percentage of the amounts
15    collected pursuant to subsections (a) and (b)(1), (2), and
16    (3) of Section 201 of this Act into a fund in the State
17    treasury known as the Income Tax Refund Fund. Beginning
18    with State fiscal year 1990 and for each fiscal year
19    thereafter, the percentage deposited into the Income Tax
20    Refund Fund during a fiscal year shall be the Annual
21    Percentage. For fiscal year 2011, the Annual Percentage
22    shall be 8.75%. For fiscal year 2012, the Annual
23    Percentage shall be 8.75%. For fiscal year 2013, the
24    Annual Percentage shall be 9.75%. For fiscal year 2014,
25    the Annual Percentage shall be 9.5%. For fiscal year 2015,
26    the Annual Percentage shall be 10%. For fiscal year 2018,

 

 

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1    the Annual Percentage shall be 9.8%. For fiscal year 2019,
2    the Annual Percentage shall be 9.7%. For fiscal year 2020,
3    the Annual Percentage shall be 9.5%. For fiscal year 2021,
4    the Annual Percentage shall be 9%. For fiscal year 2022,
5    the Annual Percentage shall be 9.25%. For all other fiscal
6    years, the Annual Percentage shall be calculated as a
7    fraction, the numerator of which shall be the amount of
8    refunds approved for payment by the Department during the
9    preceding fiscal year as a result of overpayment of tax
10    liability under subsections (a) and (b)(1), (2), and (3)
11    of Section 201 of this Act plus the amount of such refunds
12    remaining approved but unpaid at the end of the preceding
13    fiscal year, minus the amounts transferred into the Income
14    Tax Refund Fund from the Tobacco Settlement Recovery Fund,
15    and the denominator of which shall be the amounts which
16    will be collected pursuant to subsections (a) and (b)(1),
17    (2), and (3) of Section 201 of this Act during the
18    preceding fiscal year; except that in State fiscal year
19    2002, the Annual Percentage shall in no event exceed 7.6%.
20    The Director of Revenue shall certify the Annual
21    Percentage to the Comptroller on the last business day of
22    the fiscal year immediately preceding the fiscal year for
23    which it is to be effective.
24        (2) Beginning on January 1, 1989 and thereafter, the
25    Department shall deposit a percentage of the amounts
26    collected pursuant to subsections (a) and (b)(6), (7), and

 

 

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1    (8), (c) and (d) of Section 201 of this Act into a fund in
2    the State treasury known as the Income Tax Refund Fund.
3    Beginning with State fiscal year 1990 and for each fiscal
4    year thereafter, the percentage deposited into the Income
5    Tax Refund Fund during a fiscal year shall be the Annual
6    Percentage. For fiscal year 2011, the Annual Percentage
7    shall be 17.5%. For fiscal year 2012, the Annual
8    Percentage shall be 17.5%. For fiscal year 2013, the
9    Annual Percentage shall be 14%. For fiscal year 2014, the
10    Annual Percentage shall be 13.4%. For fiscal year 2015,
11    the Annual Percentage shall be 14%. For fiscal year 2018,
12    the Annual Percentage shall be 17.5%. For fiscal year
13    2019, the Annual Percentage shall be 15.5%. For fiscal
14    year 2020, the Annual Percentage shall be 14.25%. For
15    fiscal year 2021, the Annual Percentage shall be 14%. For
16    fiscal year 2022, the Annual Percentage shall be 15%. For
17    all other fiscal years, the Annual Percentage shall be
18    calculated as a fraction, the numerator of which shall be
19    the amount of refunds approved for payment by the
20    Department during the preceding fiscal year as a result of
21    overpayment of tax liability under subsections (a) and
22    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
23    Act plus the amount of such refunds remaining approved but
24    unpaid at the end of the preceding fiscal year, and the
25    denominator of which shall be the amounts which will be
26    collected pursuant to subsections (a) and (b)(6), (7), and

 

 

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1    (8), (c) and (d) of Section 201 of this Act during the
2    preceding fiscal year; except that in State fiscal year
3    2002, the Annual Percentage shall in no event exceed 23%.
4    The Director of Revenue shall certify the Annual
5    Percentage to the Comptroller on the last business day of
6    the fiscal year immediately preceding the fiscal year for
7    which it is to be effective.
8        (3) The Comptroller shall order transferred and the
9    Treasurer shall transfer from the Tobacco Settlement
10    Recovery Fund to the Income Tax Refund Fund (i)
11    $35,000,000 in January, 2001, (ii) $35,000,000 in January,
12    2002, and (iii) $35,000,000 in January, 2003.
13    (d) Expenditures from Income Tax Refund Fund.
14        (1) Beginning January 1, 1989, money in the Income Tax
15    Refund Fund shall be expended exclusively for the purpose
16    of paying refunds resulting from overpayment of tax
17    liability under Section 201 of this Act and for making
18    transfers pursuant to this subsection (d), except that in
19    State fiscal years 2022 and 2023, moneys in the Income Tax
20    Refund Fund shall also be used to pay one-time rebate
21    payments as provided under Sections 208.5 and 212.1.
22        (2) The Director shall order payment of refunds
23    resulting from overpayment of tax liability under Section
24    201 of this Act from the Income Tax Refund Fund only to the
25    extent that amounts collected pursuant to Section 201 of
26    this Act and transfers pursuant to this subsection (d) and

 

 

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1    item (3) of subsection (c) have been deposited and
2    retained in the Fund.
3        (3) As soon as possible after the end of each fiscal
4    year, the Director shall order transferred and the State
5    Treasurer and State Comptroller shall transfer from the
6    Income Tax Refund Fund to the Personal Property Tax
7    Replacement Fund an amount, certified by the Director to
8    the Comptroller, equal to the excess of the amount
9    collected pursuant to subsections (c) and (d) of Section
10    201 of this Act deposited into the Income Tax Refund Fund
11    during the fiscal year over the amount of refunds
12    resulting from overpayment of tax liability under
13    subsections (c) and (d) of Section 201 of this Act paid
14    from the Income Tax Refund Fund during the fiscal year.
15        (4) As soon as possible after the end of each fiscal
16    year, the Director shall order transferred and the State
17    Treasurer and State Comptroller shall transfer from the
18    Personal Property Tax Replacement Fund to the Income Tax
19    Refund Fund an amount, certified by the Director to the
20    Comptroller, equal to the excess of the amount of refunds
21    resulting from overpayment of tax liability under
22    subsections (c) and (d) of Section 201 of this Act paid
23    from the Income Tax Refund Fund during the fiscal year
24    over the amount collected pursuant to subsections (c) and
25    (d) of Section 201 of this Act deposited into the Income
26    Tax Refund Fund during the fiscal year.

 

 

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1        (4.5) As soon as possible after the end of fiscal year
2    1999 and of each fiscal year thereafter, the Director
3    shall order transferred and the State Treasurer and State
4    Comptroller shall transfer from the Income Tax Refund Fund
5    to the General Revenue Fund any surplus remaining in the
6    Income Tax Refund Fund as of the end of such fiscal year;
7    excluding for fiscal years 2000, 2001, and 2002 amounts
8    attributable to transfers under item (3) of subsection (c)
9    less refunds resulting from the earned income tax credit,
10    and excluding for fiscal year 2022 amounts attributable to
11    transfers from the General Revenue Fund authorized by this
12    amendatory Act of the 102nd General Assembly.
13        (5) This Act shall constitute an irrevocable and
14    continuing appropriation from the Income Tax Refund Fund
15    for the purposes purpose of (i) paying refunds upon the
16    order of the Director in accordance with the provisions of
17    this Section and (ii) paying one-time rebate payments
18    under Sections 208.5 and 212.1.
19    (e) Deposits into the Education Assistance Fund and the
20Income Tax Surcharge Local Government Distributive Fund. On
21July 1, 1991, and thereafter, of the amounts collected
22pursuant to subsections (a) and (b) of Section 201 of this Act,
23minus deposits into the Income Tax Refund Fund, the Department
24shall deposit 7.3% into the Education Assistance Fund in the
25State Treasury. Beginning July 1, 1991, and continuing through
26January 31, 1993, of the amounts collected pursuant to

 

 

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1subsections (a) and (b) of Section 201 of the Illinois Income
2Tax Act, minus deposits into the Income Tax Refund Fund, the
3Department shall deposit 3.0% into the Income Tax Surcharge
4Local Government Distributive Fund in the State Treasury.
5Beginning February 1, 1993 and continuing through June 30,
61993, of the amounts collected pursuant to subsections (a) and
7(b) of Section 201 of the Illinois Income Tax Act, minus
8deposits into the Income Tax Refund Fund, the Department shall
9deposit 4.4% into the Income Tax Surcharge Local Government
10Distributive Fund in the State Treasury. Beginning July 1,
111993, and continuing through June 30, 1994, of the amounts
12collected under subsections (a) and (b) of Section 201 of this
13Act, minus deposits into the Income Tax Refund Fund, the
14Department shall deposit 1.475% into the Income Tax Surcharge
15Local Government Distributive Fund in the State Treasury.
16    (f) Deposits into the Fund for the Advancement of
17Education. Beginning February 1, 2015, the Department shall
18deposit the following portions of the revenue realized from
19the tax imposed upon individuals, trusts, and estates by
20subsections (a) and (b) of Section 201 of this Act, minus
21deposits into the Income Tax Refund Fund, into the Fund for the
22Advancement of Education:
23        (1) beginning February 1, 2015, and prior to February
24    1, 2025, 1/30; and
25        (2) beginning February 1, 2025, 1/26.
26    If the rate of tax imposed by subsection (a) and (b) of

 

 

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1Section 201 is reduced pursuant to Section 201.5 of this Act,
2the Department shall not make the deposits required by this
3subsection (f) on or after the effective date of the
4reduction.
5    (g) Deposits into the Commitment to Human Services Fund.
6Beginning February 1, 2015, the Department shall deposit the
7following portions of the revenue realized from the tax
8imposed upon individuals, trusts, and estates by subsections
9(a) and (b) of Section 201 of this Act, minus deposits into the
10Income Tax Refund Fund, into the Commitment to Human Services
11Fund:
12        (1) beginning February 1, 2015, and prior to February
13    1, 2025, 1/30; and
14        (2) beginning February 1, 2025, 1/26.
15    If the rate of tax imposed by subsection (a) and (b) of
16Section 201 is reduced pursuant to Section 201.5 of this Act,
17the Department shall not make the deposits required by this
18subsection (g) on or after the effective date of the
19reduction.
20    (h) Deposits into the Tax Compliance and Administration
21Fund. Beginning on the first day of the first calendar month to
22occur on or after August 26, 2014 (the effective date of Public
23Act 98-1098), each month the Department shall pay into the Tax
24Compliance and Administration Fund, to be used, subject to
25appropriation, to fund additional auditors and compliance
26personnel at the Department, an amount equal to 1/12 of 5% of

 

 

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1the cash receipts collected during the preceding fiscal year
2by the Audit Bureau of the Department from the tax imposed by
3subsections (a), (b), (c), and (d) of Section 201 of this Act,
4net of deposits into the Income Tax Refund Fund made from those
5cash receipts.
6(Source: P.A. 101-8, see Section 99 for effective date;
7101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-636, eff.
86-10-20; 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658,
9eff. 8-27-21; revised 10-19-21.)
 
10
ARTICLE 45. MOTOR FUEL

 
11    Section 45-3. The State Finance Act is amended by changing
12Section 6z-108 as follows:
 
13    (30 ILCS 105/6z-108)
14    Sec. 6z-108. Transportation Renewal Fund.
15    (a) The Transportation Renewal Fund is created as a
16special fund in the State treasury and shall receive Motor
17Fuel Tax revenues as directed by Sections 2a and Section 8b of
18the Motor Fuel Tax Law.
19    (b) Money in the Transportation Renewal Fund shall be used
20exclusively for transportation-related purposes as described
21in Section 11 of Article IX of the Illinois Constitution of
221970.
23(Source: P.A. 101-30, eff. 6-28-19.)
 

 

 

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1    Section 45-5. The Motor Fuel Tax Law is amended by
2changing Sections 2, 8a, and 17 as follows:
 
3    (35 ILCS 505/2)  (from Ch. 120, par. 418)
4    Sec. 2. A tax is imposed on the privilege of operating
5motor vehicles upon the public highways and recreational-type
6watercraft upon the waters of this State.
7    (a) Prior to August 1, 1989, the tax is imposed at the rate
8of 13 cents per gallon on all motor fuel used in motor vehicles
9operating on the public highways and recreational type
10watercraft operating upon the waters of this State. Beginning
11on August 1, 1989 and until January 1, 1990, the rate of the
12tax imposed in this paragraph shall be 16 cents per gallon.
13Beginning January 1, 1990 and until July 1, 2019, the rate of
14tax imposed in this paragraph, including the tax on compressed
15natural gas, shall be 19 cents per gallon. Beginning July 1,
162019 and until July 1, 2020, the rate of tax imposed in this
17paragraph shall be 38 cents per gallon. Beginning July 1, 2020
18and until July 1, 2021, the rate of tax imposed in this
19paragraph shall be 38.7 cents per gallon. Beginning July 1,
202021 and until January 1, 2023, the rate of tax imposed in this
21paragraph shall be 39.2 cents per gallon. On January 1, 2023,
22the rate of tax imposed in this paragraph shall be increased by
23an amount equal to the percentage increase, if any, in the
24Consumer Price Index for All Urban Consumers for all items

 

 

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1published by the United States Department of Labor for the 12
2months ending in September of 2022. On July 1, 2023, and on
3July 1 of each subsequent year, the rate of tax imposed in this
4paragraph shall be and increased on July 1 of each subsequent
5year by an amount equal to the percentage increase, if any, in
6the Consumer Price Index for All Urban Consumers for all items
7published by the United States Department of Labor for the 12
8months ending in March of the year in which the increase takes
9place each year. The rate shall be rounded to the nearest
10one-tenth of one cent.
11    (a-5) Beginning on July 1, 2022 and through December 31,
122022, each retailer of motor fuel shall cause the following
13notice to be posted in a prominently visible place on each
14retail dispensing device that is used to dispense motor fuel
15in the State of Illinois: "As of July 1, 2022, the State of
16Illinois has suspended the inflation adjustment to the motor
17fuel tax through December 31, 2022. The price on this pump
18should reflect the suspension of the tax increase." The notice
19shall be printed in bold print on a sign that is no smaller
20than 4 inches by 8 inches. The sign shall be clearly visible to
21customers. Any retailer who fails to post or maintain a
22required sign through December 31, 2022 is guilty of a petty
23offense for which the fine shall be $500 per day per each
24retail premises where a violation occurs.
25    (b) Until July 1, 2019, the tax on the privilege of
26operating motor vehicles which use diesel fuel, liquefied

 

 

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1natural gas, or propane shall be the rate according to
2paragraph (a) plus an additional 2 1/2 cents per gallon.
3Beginning July 1, 2019, the tax on the privilege of operating
4motor vehicles which use diesel fuel, liquefied natural gas,
5or propane shall be the rate according to subsection (a) plus
6an additional 7.5 cents per gallon. "Diesel fuel" is defined
7as any product intended for use or offered for sale as a fuel
8for engines in which the fuel is injected into the combustion
9chamber and ignited by pressure without electric spark.
10    (c) A tax is imposed upon the privilege of engaging in the
11business of selling motor fuel as a retailer or reseller on all
12motor fuel used in motor vehicles operating on the public
13highways and recreational type watercraft operating upon the
14waters of this State: (1) at the rate of 3 cents per gallon on
15motor fuel owned or possessed by such retailer or reseller at
1612:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
17per gallon on motor fuel owned or possessed by such retailer or
18reseller at 12:01 A.M. on January 1, 1990.
19    Retailers and resellers who are subject to this additional
20tax shall be required to inventory such motor fuel and pay this
21additional tax in a manner prescribed by the Department of
22Revenue.
23    The tax imposed in this paragraph (c) shall be in addition
24to all other taxes imposed by the State of Illinois or any unit
25of local government in this State.
26    (d) Except as provided in Section 2a, the collection of a

 

 

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1tax based on gallonage of gasoline used for the propulsion of
2any aircraft is prohibited on and after October 1, 1979, and
3the collection of a tax based on gallonage of special fuel used
4for the propulsion of any aircraft is prohibited on and after
5December 1, 2019.
6    (e) The collection of a tax, based on gallonage of all
7products commonly or commercially known or sold as 1-K
8kerosene, regardless of its classification or uses, is
9prohibited (i) on and after July 1, 1992 until December 31,
101999, except when the 1-K kerosene is either: (1) delivered
11into bulk storage facilities of a bulk user, or (2) delivered
12directly into the fuel supply tanks of motor vehicles and (ii)
13on and after January 1, 2000. Beginning on January 1, 2000, the
14collection of a tax, based on gallonage of all products
15commonly or commercially known or sold as 1-K kerosene,
16regardless of its classification or uses, is prohibited except
17when the 1-K kerosene is delivered directly into a storage
18tank that is located at a facility that has withdrawal
19facilities that are readily accessible to and are capable of
20dispensing 1-K kerosene into the fuel supply tanks of motor
21vehicles. For purposes of this subsection (e), a facility is
22considered to have withdrawal facilities that are not "readily
23accessible to and capable of dispensing 1-K kerosene into the
24fuel supply tanks of motor vehicles" only if the 1-K kerosene
25is delivered from: (i) a dispenser hose that is short enough so
26that it will not reach the fuel supply tank of a motor vehicle

 

 

SB0157 Enrolled- 149 -LRB102 10128 HLH 16591 b

1or (ii) a dispenser that is enclosed by a fence or other
2physical barrier so that a vehicle cannot pull alongside the
3dispenser to permit fueling.
4    Any person who sells or uses 1-K kerosene for use in motor
5vehicles upon which the tax imposed by this Law has not been
6paid shall be liable for any tax due on the sales or use of 1-K
7kerosene.
8(Source: P.A. 100-9, eff. 7-1-17; 101-10, eff. 6-5-19; 101-32,
9eff. 6-28-19; 101-604, eff. 12-13-19.)
 
10    (35 ILCS 505/8a)  (from Ch. 120, par. 424a)
11    Sec. 8a. Deposit of proceeds. Until July 1, 2022 and
12beginning again on July 1, 2023, all All money received by the
13Department under Section 2a of this Act, except money received
14from taxes on aviation fuel sold or used on or after December
151, 2019 and through December 31, 2020, shall be deposited in
16the Underground Storage Tank Fund created by Section 57.11 of
17the Environmental Protection Act, as now or hereafter amended.
18All money received by the Department under Section 2a of this
19Act for aviation fuel sold or used on or after December 1,
202019, shall be deposited into the State Aviation Program Fund.
21This exception for aviation fuel only applies for so long as
22the revenue use requirements of 49 U.S.C. 47107(b) and 49
23U.S.C. 47133 are binding on the State. For purposes of this
24Section, "aviation fuel" means jet fuel and aviation gasoline.
25Beginning on July 1, 2022 and through June 30, 2023, all money

 

 

SB0157 Enrolled- 150 -LRB102 10128 HLH 16591 b

1received by the Department under Section 2a shall be deposited
2in the Transportation Renewal Fund.
3(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 
4    (35 ILCS 505/17)  (from Ch. 120, par. 433)
5    Sec. 17. It is the purpose of Sections 2 and 13a of this
6Act to impose a tax upon the privilege of operating each motor
7vehicle as defined in this Act upon the public highways and the
8waters of this State, such tax to be based upon the consumption
9of motor fuel in such motor vehicle, so far as the same may be
10done, under the Constitution and statutes of the United
11States, and the Constitution of the State of Illinois. It is
12the purpose of Section 2a of this Act to impose a tax upon the
13privilege of importing or receiving in this State fuel for
14sale or use, such tax to be used to fund the Underground
15Storage Tank Fund or the Transportation Renewal Fund. If any
16of the provisions of this Act include transactions which are
17not taxable or are in any other respect unconstitutional, it
18is the intent of the General Assembly that, so far as possible,
19the remaining provisions of the Act be given effect.
20(Source: P.A. 86-125.)
 
21    Section 45-10. The Environmental Impact Fee Law is amended
22by changing Section 320 as follows:
 
23    (415 ILCS 125/320)

 

 

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1    (Section scheduled to be repealed on January 1, 2025)
2    Sec. 320. Deposit of fee receipts. Except as otherwise
3provided in this paragraph, all money received by the
4Department under this Law shall be deposited in the
5Underground Storage Tank Fund created by Section 57.11 of the
6Environmental Protection Act. All money received for aviation
7fuel by the Department under this Law on or after December 1,
82019 and ending with returns due on January 20, 2021, shall be
9immediately paid over by the Department to the State Aviation
10Program Fund. The Department shall only pay such moneys into
11the State Aviation Program Fund under this Act for so long as
12the revenue use requirements of 49 U.S.C. 47107(b) and 49
13U.S.C. 47133 are binding on the State. For purposes of this
14Section, "aviation fuel" means jet fuel and aviation gasoline.
15Beginning July 1, 2022 and through June 30, 2023, all money
16received by the Department under this Law shall be deposited
17into the Transportation Renewal Fund.
18(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 
19
ARTICLE 50. ELECTRIC VEHICLES

 
20    Section 50-5. The Reimagining Electric Vehicles in
21Illinois Act is amended by changing Sections 10 and 20 as
22follows:
 
23    (20 ILCS 686/10)

 

 

SB0157 Enrolled- 152 -LRB102 10128 HLH 16591 b

1    Sec. 10. Definitions. As used in this Act:
2    "Advanced battery" means a battery that consists of a
3battery cell that can be integrated into a module, pack, or
4system to be used in energy storage applications, including a
5battery used in an electric vehicle or the electric grid.
6    "Advanced battery component" means a component of an
7advanced battery, including materials, enhancements,
8enclosures, anodes, cathodes, electrolytes, cells, and other
9associated technologies that comprise an advanced battery.
10    "Agreement" means the agreement between a taxpayer and the
11Department under the provisions of Section 45 of this Act.
12    "Applicant" means a taxpayer that (i) operates a business
13in Illinois or is planning to locate a business within the
14State of Illinois and (ii) is engaged in interstate or
15intrastate commerce for the purpose of manufacturing electric
16vehicles, electric vehicle component parts, or electric
17vehicle power supply equipment. "Applicant" does not include a
18taxpayer who closes or substantially reduces by more than 50%
19operations at one location in the State and relocates
20substantially the same operation to another location in the
21State. This does not prohibit a Taxpayer from expanding its
22operations at another location in the State. This also does
23not prohibit a Taxpayer from moving its operations from one
24location in the State to another location in the State for the
25purpose of expanding the operation, provided that the
26Department determines that expansion cannot reasonably be

 

 

SB0157 Enrolled- 153 -LRB102 10128 HLH 16591 b

1accommodated within the municipality or county in which the
2business is located, or, in the case of a business located in
3an incorporated area of the county, within the county in which
4the business is located, after conferring with the chief
5elected official of the municipality or county and taking into
6consideration any evidence offered by the municipality or
7county regarding the ability to accommodate expansion within
8the municipality or county.
9    "Battery raw materials" means the raw and processed form
10of a mineral, metal, chemical, or other material used in an
11advanced battery component.
12    "Battery raw materials refining service provider" means a
13business that operates a facility that filters, sifts, and
14treats battery raw materials for use in an advanced battery.
15    "Battery recycling and reuse manufacturer" means a
16manufacturer that is primarily engaged in the recovery,
17retrieval, processing, recycling, or recirculating of battery
18raw materials for new use in electric vehicle batteries.
19    "Capital improvements" means the purchase, renovation,
20rehabilitation, or construction of permanent tangible land,
21buildings, structures, equipment, and furnishings in an
22approved project sited in Illinois and expenditures for goods
23or services that are normally capitalized, including
24organizational costs and research and development costs
25incurred in Illinois. For land, buildings, structures, and
26equipment that are leased, the lease must equal or exceed the

 

 

SB0157 Enrolled- 154 -LRB102 10128 HLH 16591 b

1term of the agreement, and the cost of the property shall be
2determined from the present value, using the corporate
3interest rate prevailing at the time of the application, of
4the lease payments.
5    "Credit" means either a "REV Illinois Credit" or a "REV
6Construction Jobs Credit" agreed to between the Department and
7applicant under this Act.
8    "Department" means the Department of Commerce and Economic
9Opportunity.
10    "Director" means the Director of Commerce and Economic
11Opportunity.
12    "Electric vehicle" means a vehicle that is exclusively
13powered by and refueled by electricity, including electricity
14generated through a hydrogen fuel cells or solar technology
15must be plugged in to charge or utilize a pre-charged battery,
16and is permitted to operate on public roadways. "Electric
17vehicle" does not include hybrid electric vehicles, electric
18bicycles, or and extended-range electric vehicles that are
19also equipped with conventional fueled propulsion or auxiliary
20engines.
21    "Electric vehicle manufacturer" means a new or existing
22manufacturer that is primarily focused on reequipping,
23expanding, or establishing a manufacturing facility in
24Illinois that produces electric vehicles as defined in this
25Section.
26    "Electric vehicle component parts manufacturer" means a

 

 

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1new or existing manufacturer that is primarily focused on
2reequipping, expanding, or establishing a manufacturing
3facility in Illinois that produces advanced battery components
4or key components that directly support the electric functions
5of electric vehicles, as defined by this Section.
6    "Electric vehicle power supply equipment" means the
7equipment used specifically for the purpose of delivering
8electricity to an electric vehicle, including hydrogen fuel
9cells or solar refueling infrastructure.
10    "Electric vehicle power supply manufacturer" means a new
11or existing manufacturer that is focused on reequipping,
12expanding, or establishing a manufacturing facility in
13Illinois that produces electric vehicle power supply equipment
14used for the purpose of delivering electricity to an electric
15vehicle, including hydrogen fuel cell or solar refueling
16infrastructure.
17    "Energy Transition Area" means a county with less than
18100,000 people or a municipality that contains one or more of
19the following:
20        (1) a fossil fuel plant that was retired from service
21    or has significant reduced service within 6 years before
22    the time of the application or will be retired or have
23    service significantly reduced within 6 years following the
24    time of the application; or
25        (2) a coal mine that was closed or had operations
26    significantly reduced within 6 years before the time of

 

 

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1    the application or is anticipated to be closed or have
2    operations significantly reduced within 6 years following
3    the time of the application.
4    "Full-time employee" means an individual who is employed
5for consideration for at least 35 hours each week or who
6renders any other standard of service generally accepted by
7industry custom or practice as full-time employment. An
8individual for whom a W-2 is issued by a Professional Employer
9Organization (PEO) is a full-time employee if employed in the
10service of the applicant for consideration for at least 35
11hours each week.
12    "Incremental income tax" means the total amount withheld
13during the taxable year from the compensation of new employees
14and, if applicable, retained employees under Article 7 of the
15Illinois Income Tax Act arising from employment at a project
16that is the subject of an agreement.
17    "Institution of higher education" or "institution" means
18any accredited public or private university, college,
19community college, business, technical, or vocational school,
20or other accredited educational institution offering degrees
21and instruction beyond the secondary school level.
22    "Minority person" means a minority person as defined in
23the Business Enterprise for Minorities, Women, and Persons
24with Disabilities Act.
25    "New employee" means a newly-hired full-time employee
26employed to work at the project site and whose work is directly

 

 

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1related to the project.
2    "Noncompliance date" means, in the case of a taxpayer that
3is not complying with the requirements of the agreement or the
4provisions of this Act, the day following the last date upon
5which the taxpayer was in compliance with the requirements of
6the agreement and the provisions of this Act, as determined by
7the Director, pursuant to Section 70.
8    "Pass-through entity" means an entity that is exempt from
9the tax under subsection (b) or (c) of Section 205 of the
10Illinois Income Tax Act.
11    "Placed in service" means the state or condition of
12readiness, availability for a specifically assigned function,
13and the facility is constructed and ready to conduct its
14facility operations to manufacture goods.
15    "Professional employer organization" (PEO) means an
16employee leasing company, as defined in Section 206.1 of the
17Illinois Unemployment Insurance Act.
18    "Program" means the Reimagining Electric Vehicles in
19Illinois Program (the REV Illinois Program) established in
20this Act.
21    "Project" or "REV Illinois Project" means a for-profit
22economic development activity for the manufacture of electric
23vehicles, electric vehicle component parts, or electric
24vehicle power supply equipment which is designated by the
25Department as a REV Illinois Project and is the subject of an
26agreement.

 

 

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1    "Recycling facility" means a location at which the
2taxpayer disposes of batteries and other component parts in
3manufacturing of electric vehicles, electric vehicle component
4parts, or electric vehicle power supply equipment.
5    "Related member" means a person that, with respect to the
6taxpayer during any portion of the taxable year, is any one of
7the following:
8        (1) An individual stockholder, if the stockholder and
9    the members of the stockholder's family (as defined in
10    Section 318 of the Internal Revenue Code) own directly,
11    indirectly, beneficially, or constructively, in the
12    aggregate, at least 50% of the value of the taxpayer's
13    outstanding stock.
14        (2) A partnership, estate, trust and any partner or
15    beneficiary, if the partnership, estate, or trust, and its
16    partners or beneficiaries own directly, indirectly,
17    beneficially, or constructively, in the aggregate, at
18    least 50% of the profits, capital, stock, or value of the
19    taxpayer.
20        (3) A corporation, and any party related to the
21    corporation in a manner that would require an attribution
22    of stock from the corporation under the attribution rules
23    of Section 318 of the Internal Revenue Code, if the
24    Taxpayer owns directly, indirectly, beneficially, or
25    constructively at least 50% of the value of the
26    corporation's outstanding stock.

 

 

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1        (4) A corporation and any party related to that
2    corporation in a manner that would require an attribution
3    of stock from the corporation to the party or from the
4    party to the corporation under the attribution rules of
5    Section 318 of the Internal Revenue Code, if the
6    corporation and all such related parties own in the
7    aggregate at least 50% of the profits, capital, stock, or
8    value of the taxpayer.
9        (5) A person to or from whom there is an attribution of
10    stock ownership in accordance with Section 1563(e) of the
11    Internal Revenue Code, except, for purposes of determining
12    whether a person is a related member under this paragraph,
13    20% shall be substituted for 5% wherever 5% appears in
14    Section 1563(e) of the Internal Revenue Code.
15    "Retained employee" means a full-time employee employed by
16the taxpayer prior to the term of the Agreement who continues
17to be employed during the term of the agreement whose job
18duties are directly and substantially related to the project.
19For purposes of this definition, "directly and substantially
20related to the project" means at least two-thirds of the
21employee's job duties must be directly related to the project
22and the employee must devote at least two-thirds of his or her
23time to the project. The term "retained employee" does not
24include any individual who has a direct or an indirect
25ownership interest of at least 5% in the profits, equity,
26capital, or value of the taxpayer or a child, grandchild,

 

 

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1parent, or spouse, other than a spouse who is legally
2separated from the individual, of any individual who has a
3direct or indirect ownership of at least 5% in the profits,
4equity, capital, or value of the taxpayer.
5    "REV Illinois credit" means a credit agreed to between the
6Department and the applicant under this Act that is based on
7the incremental income tax attributable to new employees and,
8if applicable, retained employees, and on training costs for
9such employees at the applicant's project.
10    "REV construction jobs credit" means a credit agreed to
11between the Department and the applicant under this Act that
12is based on the incremental income tax attributable to
13construction wages paid in connection with construction of the
14project facilities.
15    "Statewide baseline" means the total number of full-time
16employees of the applicant and any related member employed by
17such entities at the time of application for incentives under
18this Act.
19    "Taxpayer" means an individual, corporation, partnership,
20or other entity that has a legal obligation to pay Illinois
21income taxes and file an Illinois income tax return.
22    "Training costs" means costs incurred to upgrade the
23technological skills of full-time employees in Illinois and
24includes: curriculum development; training materials
25(including scrap product costs); trainee domestic travel
26expenses; instructor costs (including wages, fringe benefits,

 

 

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1tuition and domestic travel expenses); rent, purchase or lease
2of training equipment; and other usual and customary training
3costs. "Training costs" do not include costs associated with
4travel outside the United States (unless the Taxpayer receives
5prior written approval for the travel by the Director based on
6a showing of substantial need or other proof the training is
7not reasonably available within the United States), wages and
8fringe benefits of employees during periods of training, or
9administrative cost related to full-time employees of the
10taxpayer.
11    "Underserved area" means any geographic areas as defined
12in Section 5-5 of the Economic Development for a Growing
13Economy Tax Credit Act.
14(Source: P.A. 102-669, eff. 11-16-21.)
 
15    (20 ILCS 686/20)
16    Sec. 20. REV Illinois Program; project applications.
17    (a) The Reimagining Electric Vehicles in Illinois (REV
18Illinois) Program is hereby established and shall be
19administered by the Department. The Program will provide
20financial incentives to any one or more of the following: (1)
21eligible manufacturers of electric vehicles, electric vehicle
22component parts, and electric vehicle power supply equipment;
23(2) battery recycling and reuse manufacturers; or (3) battery
24raw materials refining service providers.
25    (b) Any taxpayer planning a project to be located in

 

 

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1Illinois may request consideration for designation of its
2project as a REV Illinois Project, by formal written letter of
3request or by formal application to the Department, in which
4the applicant states its intent to make at least a specified
5level of investment and intends to hire a specified number of
6full-time employees at a designated location in Illinois. As
7circumstances require, the Department shall require a formal
8application from an applicant and a formal letter of request
9for assistance.
10    (c) In order to qualify for credits under the REV Illinois
11Program, an Applicant must:
12        (1) for an electric vehicle manufacturer:
13            (A) make an investment of at least $1,500,000,000
14        in capital improvements at the project site;
15            (B) to be placed in service within the State
16        within a 60-month period after approval of the
17        application; and
18            (C) create at least 500 new full-time employee
19        jobs; or
20        (2) for an electric vehicle component parts
21    manufacturer:
22            (A) make an investment of at least $300,000,000 in
23        capital improvements at the project site;
24            (B) manufacture one or more parts that are
25        primarily used for electric vehicle manufacturing;
26            (C) to be placed in service within the State

 

 

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1        within a 60-month period after approval of the
2        application; and
3            (D) create at least 150 new full-time employee
4        jobs; or
5        (3) for an electric vehicle manufacturer, an electric
6    vehicle power supply equipment manufacturer Manufacturer,
7    an or electric vehicle component part manufacturer that
8    does not qualify quality under paragraph (2) above, a
9    battery recycling and reuse manufacturer, or a battery raw
10    materials refining service provider:
11            (A) make an investment of at least $20,000,000 in
12        capital improvements at the project site;
13            (B) for electric vehicle component part
14        manufacturers, manufacture one or more parts that are
15        primarily used for electric vehicle manufacturing;
16            (C) to be placed in service within the State
17        within a 48-month period after approval of the
18        application; and
19            (D) create at least 50 new full-time employee
20        jobs; or
21        (4) for an electric vehicle manufacturer or electric
22    vehicle component parts manufacturer with existing
23    operations within Illinois that intends to convert or
24    expand, in whole or in part, the existing facility from
25    traditional manufacturing to primarily electric vehicle
26    manufacturing, electric vehicle component parts

 

 

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1    manufacturing, or electric vehicle power supply equipment
2    manufacturing:
3            (A) make an investment of at least $100,000,000 in
4        capital improvements at the project site;
5            (B) to be placed in service within the State
6        within a 60-month period after approval of the
7        application; and
8            (C) create the lesser of 75 new full-time employee
9        jobs or new full-time employee jobs equivalent to 10%
10        of the Statewide baseline applicable to the taxpayer
11        and any related member at the time of application.
12    (d) For agreements entered into prior to the effective
13date of this amendatory Act of the 102nd General Assembly, for
14For any applicant creating the full-time employee jobs noted
15in subsection (c), those jobs must have a total compensation
16equal to or greater than 120% of the average wage paid to
17full-time employees in the county where the project is
18located, as determined by the U.S. Bureau of Labor Statistics.
19For agreements entered into on or after the effective date of
20this amendatory Act of the 102nd General Assembly, for any
21applicant creating the full-time employee jobs noted in
22subsection (c), those jobs must have a compensation equal to
23or greater than 120% of the average wage paid to full-time
24employees in a similar position within an occupational group
25in the county where the project is located, as determined by
26the U.S. Bureau of Labor Statistics.

 

 

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1    (e) For any applicant, within 24 months after being placed
2in service, it must certify to the Department that it is carbon
3neutral or has attained certification under one of more of the
4following green building standards:
5        (1) BREEAM for New Construction or BREEAM In-Use;
6        (2) ENERGY STAR;
7        (3) Envision;
8        (4) ISO 50001 - energy management;
9        (5) LEED for Building Design and Construction or LEED
10    for Building Operations and Maintenance;
11        (6) Green Globes for New Construction or Green Globes
12    for Existing Buildings; or
13        (7) UL 3223.
14    (f) Each applicant must outline its hiring plan and
15commitment to recruit and hire full-time employee positions at
16the project site. The hiring plan may include a partnership
17with an institution of higher education to provide
18internships, including, but not limited to, internships
19supported by the Clean Jobs Workforce Network Program, or
20full-time permanent employment for students at the project
21site. Additionally, the applicant may create or utilize
22participants from apprenticeship programs that are approved by
23and registered with the United States Department of Labor's
24Bureau of Apprenticeship and Training. The Applicant may apply
25for apprenticeship education expense credits in accordance
26with the provisions set forth in 14 Ill. Admin. Code 522. Each

 

 

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1applicant is required to report annually, on or before April
215, on the diversity of its workforce in accordance with
3Section 50 of this Act. For existing facilities of applicants
4under paragraph (3) of subsection (b) above, if the taxpayer
5expects a reduction in force due to its transition to
6manufacturing electric vehicle, electric vehicle component
7parts, or electric vehicle power supply equipment, the plan
8submitted under this Section must outline the taxpayer's plan
9to assist with retraining its workforce aligned with the
10taxpayer's adoption of new technologies and anticipated
11efforts to retrain employees through employment opportunities
12within the taxpayer's workforce.
13    (g) Each applicant must demonstrate a contractual or other
14relationship with a recycling facility, or demonstrate its own
15recycling capabilities, at the time of application and report
16annually a continuing contractual or other relationship with a
17recycling facility and the percentage of batteries used in
18electric vehicles recycled throughout the term of the
19agreement.
20    (h) A taxpayer may not enter into more than one agreement
21under this Act with respect to a single address or location for
22the same period of time. Also, a taxpayer may not enter into an
23agreement under this Act with respect to a single address or
24location for the same period of time for which the taxpayer
25currently holds an active agreement under the Economic
26Development for a Growing Economy Tax Credit Act. This

 

 

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1provision does not preclude the applicant from entering into
2an additional agreement after the expiration or voluntary
3termination of an earlier agreement under this Act or under
4the Economic Development for a Growing Economy Tax Credit Act
5to the extent that the taxpayer's application otherwise
6satisfies the terms and conditions of this Act and is approved
7by the Department. An applicant with an existing agreement
8under the Economic Development for a Growing Economy Tax
9Credit Act may submit an application for an agreement under
10this Act after it terminates any existing agreement under the
11Economic Development for a Growing Economy Tax Credit Act with
12respect to the same address or location.
13(Source: P.A. 102-669, eff. 11-16-21.)
 
14
ARTICLE 55. EARNED INCOME TAX CREDIT

 
15    Section 55-5. The Illinois Income Tax Act is amended by
16changing Section 212 as follows:
 
17    (35 ILCS 5/212)
18    Sec. 212. Earned income tax credit.
19    (a) With respect to the federal earned income tax credit
20allowed for the taxable year under Section 32 of the federal
21Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
22is entitled to a credit against the tax imposed by subsections
23(a) and (b) of Section 201 in an amount equal to (i) 5% of the

 

 

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1federal tax credit for each taxable year beginning on or after
2January 1, 2000 and ending prior to December 31, 2012, (ii)
37.5% of the federal tax credit for each taxable year beginning
4on or after January 1, 2012 and ending prior to December 31,
52013, (iii) 10% of the federal tax credit for each taxable year
6beginning on or after January 1, 2013 and beginning prior to
7January 1, 2017, (iv) 14% of the federal tax credit for each
8taxable year beginning on or after January 1, 2017 and
9beginning prior to January 1, 2018, and (v) 18% of the federal
10tax credit for each taxable year beginning on or after January
111, 2018 and beginning prior to January 1, 2023, and (vi) 20% of
12the federal tax credit for each taxable year beginning on or
13after January 1, 2023.
14    For a non-resident or part-year resident, the amount of
15the credit under this Section shall be in proportion to the
16amount of income attributable to this State.
17    (b) For taxable years beginning before January 1, 2003, in
18no event shall a credit under this Section reduce the
19taxpayer's liability to less than zero. For each taxable year
20beginning on or after January 1, 2003, if the amount of the
21credit exceeds the income tax liability for the applicable tax
22year, then the excess credit shall be refunded to the
23taxpayer. The amount of a refund shall not be included in the
24taxpayer's income or resources for the purposes of determining
25eligibility or benefit level in any means-tested benefit
26program administered by a governmental entity unless required

 

 

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1by federal law.
2    (b-5) For taxable years beginning on or after January 1,
32023, each individual taxpayer who has attained the age of 18
4during the taxable year but has not yet attained the age of 25
5is entitled to the credit under paragraph (a) based on the
6federal tax credit for which the taxpayer would have been
7eligible without regard to any age requirements that would
8otherwise apply to individuals without a qualifying child in
9Section 32(c)(1)(A)(ii) of the federal Internal Revenue Code.
10    (b-10) For taxable years beginning on or after January 1,
112023, each individual taxpayer who has attained the age of 65
12or older during the taxable year is entitled to the credit
13under paragraph (a) based on the federal tax credit for which
14the taxpayer would have been eligible without regard to any
15age requirements that would otherwise apply to individuals
16without a qualifying child in Section 32(c)(1)(A)(ii) of the
17federal Internal Revenue Code.
18    (b-15) For taxable years beginning on or after January 1,
192023, each individual taxpayer filing a return using an
20individual taxpayer identification number (ITIN) as prescribed
21under Section 6109 of the Internal Revenue Code, other than a
22Social Security number issued pursuant to Section 205(c)(2)(A)
23of the Social Security Act, is entitled to the credit under
24paragraph (a) based on the federal tax credit for which they
25would have been eligible without applying the restrictions
26regarding social security numbers in Section 32(m) of the

 

 

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1federal Internal Revenue Code.
2    (c) This Section is exempt from the provisions of Section
3250.
4(Source: P.A. 100-22, eff. 7-6-17.)
 
5
ARTICLE 60. GROCERIES

 
6    Section 60-5. The State Finance Act is amended by adding
7Section 5.971 as follows:
 
8    (30 ILCS 105/5.971 new)
9    Sec. 5.971. The Grocery Tax Replacement Fund. This Section
10is repealed January 1, 2024.
 
11    Section 60-10. The State Finance Act is amended by
12changing Sections 6z-17 and 6z-18 and by adding Section 6z-130
13as follows:
 
14    (30 ILCS 105/6z-17)  (from Ch. 127, par. 142z-17)
15    Sec. 6z-17. State and Local Sales Tax Reform Fund.
16    (a) After deducting the amount transferred to the Tax
17Compliance and Administration Fund under subsection (b), of
18the money paid into the State and Local Sales Tax Reform Fund:
19(i) subject to appropriation to the Department of Revenue,
20Municipalities having 1,000,000 or more inhabitants shall
21receive 20% and may expend such amount to fund and establish a

 

 

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1program for developing and coordinating public and private
2resources targeted to meet the affordable housing needs of
3low-income and very low-income households within such
4municipality, (ii) 10% shall be transferred into the Regional
5Transportation Authority Occupation and Use Tax Replacement
6Fund, a special fund in the State treasury which is hereby
7created, (iii) until July 1, 2013, subject to appropriation to
8the Department of Transportation, the Madison County Mass
9Transit District shall receive .6%, and beginning on July 1,
102013, subject to appropriation to the Department of Revenue,
110.6% shall be distributed each month out of the Fund to the
12Madison County Mass Transit District, (iv) the following
13amounts, plus any cumulative deficiency in such transfers for
14prior months, shall be transferred monthly into the Build
15Illinois Fund and credited to the Build Illinois Bond Account
16therein:
17Fiscal YearAmount
181990$2,700,000
1919911,850,000
2019922,750,000
2119932,950,000
22    From Fiscal Year 1994 through Fiscal Year 2025 the
23transfer shall total $3,150,000 monthly, plus any cumulative
24deficiency in such transfers for prior months, and (v) the
25remainder of the money paid into the State and Local Sales Tax
26Reform Fund shall be transferred into the Local Government

 

 

SB0157 Enrolled- 172 -LRB102 10128 HLH 16591 b

1Distributive Fund and, except for municipalities with
21,000,000 or more inhabitants which shall receive no portion
3of such remainder, shall be distributed, subject to
4appropriation, in the manner provided by Section 2 of "An Act
5in relation to State revenue sharing with local government
6entities", approved July 31, 1969, as now or hereafter
7amended. Municipalities with more than 50,000 inhabitants
8according to the 1980 U.S. Census and located within the Metro
9East Mass Transit District receiving funds pursuant to
10provision (v) of this paragraph may expend such amounts to
11fund and establish a program for developing and coordinating
12public and private resources targeted to meet the affordable
13housing needs of low-income and very low-income households
14within such municipality.
15    Moneys transferred from the Grocery Tax Replacement Fund
16to the State and Local Sales Tax Reform Fund under Section
176z-130 shall be treated under this Section in the same manner
18as if they had been remitted with the return on which they were
19reported.
20    (b) Beginning on the first day of the first calendar month
21to occur on or after the effective date of this amendatory Act
22of the 98th General Assembly, each month the Department of
23Revenue shall certify to the State Comptroller and the State
24Treasurer, and the State Comptroller shall order transferred
25and the State Treasurer shall transfer from the State and
26Local Sales Tax Reform Fund to the Tax Compliance and

 

 

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1Administration Fund, an amount equal to 1/12 of 5% of 20% of
2the cash receipts collected during the preceding fiscal year
3by the Audit Bureau of the Department of Revenue under the Use
4Tax Act, the Service Use Tax Act, the Service Occupation Tax
5Act, the Retailers' Occupation Tax Act, and associated local
6occupation and use taxes administered by the Department. The
7amount distributed under subsection (a) each month shall first
8be reduced by the amount transferred to the Tax Compliance and
9Administration Fund under this subsection (b). Moneys
10transferred to the Tax Compliance and Administration Fund
11under this subsection (b) shall be used, subject to
12appropriation, to fund additional auditors and compliance
13personnel at the Department of Revenue.
14(Source: P.A. 98-44, eff. 6-28-13; 98-1098, eff. 8-26-14.)
 
15    (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
16    Sec. 6z-18. Local Government Tax Fund. A portion of the
17money paid into the Local Government Tax Fund from sales of
18tangible personal property taxed at the 1% rate under the
19Retailers' Occupation Tax Act and the Service Occupation Tax
20Act, which occurred in municipalities, shall be distributed to
21each municipality based upon the sales which occurred in that
22municipality. The remainder shall be distributed to each
23county based upon the sales which occurred in the
24unincorporated area of that county.
25    Moneys transferred from the Grocery Tax Replacement Fund

 

 

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1to the Local Government Tax Fund under Section 6z-130 shall be
2treated under this Section in the same manner as if they had
3been remitted with the return on which they were reported.
4    A portion of the money paid into the Local Government Tax
5Fund from the 6.25% general use tax rate on the selling price
6of tangible personal property which is purchased outside
7Illinois at retail from a retailer and which is titled or
8registered by any agency of this State's government shall be
9distributed to municipalities as provided in this paragraph.
10Each municipality shall receive the amount attributable to
11sales for which Illinois addresses for titling or registration
12purposes are given as being in such municipality. The
13remainder of the money paid into the Local Government Tax Fund
14from such sales shall be distributed to counties. Each county
15shall receive the amount attributable to sales for which
16Illinois addresses for titling or registration purposes are
17given as being located in the unincorporated area of such
18county.
19    A portion of the money paid into the Local Government Tax
20Fund from the 6.25% general rate (and, beginning July 1, 2000
21and through December 31, 2000, the 1.25% rate on motor fuel and
22gasohol, and beginning on August 6, 2010 through August 15,
232010, the 1.25% rate on sales tax holiday items) on sales
24subject to taxation under the Retailers' Occupation Tax Act
25and the Service Occupation Tax Act, which occurred in
26municipalities, shall be distributed to each municipality,

 

 

SB0157 Enrolled- 175 -LRB102 10128 HLH 16591 b

1based upon the sales which occurred in that municipality. The
2remainder shall be distributed to each county, based upon the
3sales which occurred in the unincorporated area of such
4county.
5    For the purpose of determining allocation to the local
6government unit, a retail sale by a producer of coal or other
7mineral mined in Illinois is a sale at retail at the place
8where the coal or other mineral mined in Illinois is extracted
9from the earth. This paragraph does not apply to coal or other
10mineral when it is delivered or shipped by the seller to the
11purchaser at a point outside Illinois so that the sale is
12exempt under the United States Constitution as a sale in
13interstate or foreign commerce.
14    Whenever the Department determines that a refund of money
15paid into the Local Government Tax Fund should be made to a
16claimant instead of issuing a credit memorandum, the
17Department shall notify the State Comptroller, who shall cause
18the order to be drawn for the amount specified, and to the
19person named, in such notification from the Department. Such
20refund shall be paid by the State Treasurer out of the Local
21Government Tax Fund.
22    As soon as possible after the first day of each month,
23beginning January 1, 2011, upon certification of the
24Department of Revenue, the Comptroller shall order
25transferred, and the Treasurer shall transfer, to the STAR
26Bonds Revenue Fund the local sales tax increment, as defined

 

 

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1in the Innovation Development and Economy Act, collected
2during the second preceding calendar month for sales within a
3STAR bond district and deposited into the Local Government Tax
4Fund, less 3% of that amount, which shall be transferred into
5the Tax Compliance and Administration Fund and shall be used
6by the Department, subject to appropriation, to cover the
7costs of the Department in administering the Innovation
8Development and Economy Act.
9    After the monthly transfer to the STAR Bonds Revenue Fund,
10on or before the 25th day of each calendar month, the
11Department shall prepare and certify to the Comptroller the
12disbursement of stated sums of money to named municipalities
13and counties, the municipalities and counties to be those
14entitled to distribution of taxes or penalties paid to the
15Department during the second preceding calendar month. The
16amount to be paid to each municipality or county shall be the
17amount (not including credit memoranda) collected during the
18second preceding calendar month by the Department and paid
19into the Local Government Tax Fund, plus an amount the
20Department determines is necessary to offset any amounts which
21were erroneously paid to a different taxing body, and not
22including an amount equal to the amount of refunds made during
23the second preceding calendar month by the Department, and not
24including any amount which the Department determines is
25necessary to offset any amounts which are payable to a
26different taxing body but were erroneously paid to the

 

 

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1municipality or county, and not including any amounts that are
2transferred to the STAR Bonds Revenue Fund. Within 10 days
3after receipt, by the Comptroller, of the disbursement
4certification to the municipalities and counties, provided for
5in this Section to be given to the Comptroller by the
6Department, the Comptroller shall cause the orders to be drawn
7for the respective amounts in accordance with the directions
8contained in such certification.
9    When certifying the amount of monthly disbursement to a
10municipality or county under this Section, the Department
11shall increase or decrease that amount by an amount necessary
12to offset any misallocation of previous disbursements. The
13offset amount shall be the amount erroneously disbursed within
14the 6 months preceding the time a misallocation is discovered.
15    The provisions directing the distributions from the
16special fund in the State Treasury provided for in this
17Section shall constitute an irrevocable and continuing
18appropriation of all amounts as provided herein. The State
19Treasurer and State Comptroller are hereby authorized to make
20distributions as provided in this Section.
21    In construing any development, redevelopment, annexation,
22preannexation or other lawful agreement in effect prior to
23September 1, 1990, which describes or refers to receipts from
24a county or municipal retailers' occupation tax, use tax or
25service occupation tax which now cannot be imposed, such
26description or reference shall be deemed to include the

 

 

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1replacement revenue for such abolished taxes, distributed from
2the Local Government Tax Fund.
3    As soon as possible after the effective date of this
4amendatory Act of the 98th General Assembly, the State
5Comptroller shall order and the State Treasurer shall transfer
6$6,600,000 from the Local Government Tax Fund to the Illinois
7State Medical Disciplinary Fund.
8(Source: P.A. 100-1171, eff. 1-4-19.)
 
9    (30 ILCS 105/6z-130 new)
10    Sec. 6z-130. Grocery Tax Replacement Fund.
11    (a) The Grocery Tax Replacement Fund is hereby created as
12a special fund in the State Treasury.
13    (b) On the effective date of this amendatory Act of the
14102nd General Assembly, or as soon thereafter as practical,
15but no later than June 30, 2022, the State Comptroller shall
16direct and the State Treasurer shall transfer the sum of
17$325,000,000 from the General Revenue Fund to the Grocery Tax
18Replacement Fund.
19    (c) On July 1, 2022, or as soon thereafter as practical,
20the State Comptroller shall direct and the State Treasurer
21shall transfer the sum of $75,000,000 from the General Revenue
22Fund to the Grocery Tax Replacement Fund.
23    (d) In addition to any other transfers that may be
24provided for by law, beginning on the effective date of this
25amendatory Act of the 102nd General Assembly and until

 

 

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1November 30, 2023, the Director may certify additional
2transfer amounts needed beyond the amounts specified in
3subsections (b) and (c) to cover any additional amounts needed
4to equal the net revenue that, but for the reduction of the
5rate to 0% in the Use Tax Act, the Service Use Tax Act, the
6Service Occupation Tax Act, and the Retailers' Occupation Tax
7Act under this amendatory Act of the 102nd General Assembly,
8would have been realized if the items that are subject to the
9rate reduction had been taxed at the 1% rate during the period
10of the reduction. The State Comptroller shall direct and the
11State Treasurer shall transfer the amounts certified by the
12Director from the General Revenue Fund to the Grocery Tax
13Replacement Fund.
14    (e) In addition to any other transfers that may be
15provided for by law, beginning on July 1, 2022 and until
16December 1, 2023, at the direction of the Department of
17Revenue, the State Comptroller shall direct and the State
18Treasurer shall transfer from the Grocery Tax Replacement Fund
19to the State and Local Sales Tax Reform Fund any amounts needed
20to equal the net revenue that, but for the reduction of the
21rate to 0% in the Use Tax Act and Service Use Tax Act under
22this amendatory Act of the 102nd General Assembly, would have
23been deposited into the State and Local Sales Tax Reform Fund
24if the items that are subject to the rate reduction had been
25taxed at the 1% rate during the period of the reduction.
26    (f) In addition to any other transfers that may be

 

 

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1provided for by law, beginning on July 1, 2022 and until
2December 1, 2023, at the direction of the Department of
3Revenue, the State Comptroller shall direct and the State
4Treasurer shall transfer from the Grocery Tax Replacement Fund
5to the Local Government Tax Fund any amounts needed to equal
6the net revenue that, but for the reduction of the rate to 0%
7in the Service Occupation Tax Act and the Retailers'
8Occupation Tax Act under this amendatory Act of the 102nd
9General Assembly, would have been deposited into the Local
10Government Tax Fund if the items that are subject to the rate
11reduction had been taxed at the 1% rate during the period of
12the reduction.
13    (g) The State Comptroller shall direct and the State
14Treasurer shall transfer the remaining balance in the Grocery
15Tax Replacement Fund to the General Revenue Fund on December
161, 2023, or as soon thereafter as practical. Upon completion
17of the transfer, the Grocery Tax Replacement Fund is
18dissolved.
19    (h) This Section is repealed on January 1, 2024.
 
20    Section 60-15. The Use Tax Act is amended by changing
21Sections 3-10, 3a, and 9 as follows:
 
22    (35 ILCS 105/3-10)
23    Sec. 3-10. Rate of tax. Unless otherwise provided in this
24Section, the tax imposed by this Act is at the rate of 6.25% of

 

 

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1either the selling price or the fair market value, if any, of
2the tangible personal property. In all cases where property
3functionally used or consumed is the same as the property that
4was purchased at retail, then the tax is imposed on the selling
5price of the property. In all cases where property
6functionally used or consumed is a by-product or waste product
7that has been refined, manufactured, or produced from property
8purchased at retail, then the tax is imposed on the lower of
9the fair market value, if any, of the specific property so used
10in this State or on the selling price of the property purchased
11at retail. For purposes of this Section "fair market value"
12means the price at which property would change hands between a
13willing buyer and a willing seller, neither being under any
14compulsion to buy or sell and both having reasonable knowledge
15of the relevant facts. The fair market value shall be
16established by Illinois sales by the taxpayer of the same
17property as that functionally used or consumed, or if there
18are no such sales by the taxpayer, then comparable sales or
19purchases of property of like kind and character in Illinois.
20    Beginning on July 1, 2000 and through December 31, 2000,
21with respect to motor fuel, as defined in Section 1.1 of the
22Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23the Use Tax Act, the tax is imposed at the rate of 1.25%.
24    Beginning on August 6, 2010 through August 15, 2010, with
25respect to sales tax holiday items as defined in Section 3-6 of
26this Act, the tax is imposed at the rate of 1.25%.

 

 

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1    With respect to gasohol, the tax imposed by this Act
2applies to (i) 70% of the proceeds of sales made on or after
3January 1, 1990, and before July 1, 2003, (ii) 80% of the
4proceeds of sales made on or after July 1, 2003 and on or
5before July 1, 2017, and (iii) 100% of the proceeds of sales
6made thereafter. If, at any time, however, the tax under this
7Act on sales of gasohol is imposed at the rate of 1.25%, then
8the tax imposed by this Act applies to 100% of the proceeds of
9sales of gasohol made during that time.
10    With respect to majority blended ethanol fuel, the tax
11imposed by this Act does not apply to the proceeds of sales
12made on or after July 1, 2003 and on or before December 31,
132023 but applies to 100% of the proceeds of sales made
14thereafter.
15    With respect to biodiesel blends with no less than 1% and
16no more than 10% biodiesel, the tax imposed by this Act applies
17to (i) 80% of the proceeds of sales made on or after July 1,
182003 and on or before December 31, 2018 and (ii) 100% of the
19proceeds of sales made thereafter. If, at any time, however,
20the tax under this Act on sales of biodiesel blends with no
21less than 1% and no more than 10% biodiesel is imposed at the
22rate of 1.25%, then the tax imposed by this Act applies to 100%
23of the proceeds of sales of biodiesel blends with no less than
241% and no more than 10% biodiesel made during that time.
25    With respect to 100% biodiesel and biodiesel blends with
26more than 10% but no more than 99% biodiesel, the tax imposed

 

 

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1by this Act does not apply to the proceeds of sales made on or
2after July 1, 2003 and on or before December 31, 2023 but
3applies to 100% of the proceeds of sales made thereafter.
4    Until July 1, 2022 and beginning again on July 1, 2023,
5with With respect to food for human consumption that is to be
6consumed off the premises where it is sold (other than
7alcoholic beverages, food consisting of or infused with adult
8use cannabis, soft drinks, and food that has been prepared for
9immediate consumption), the tax is imposed at the rate of 1%.
10Beginning on July 1, 2022 and until July 1, 2023, with respect
11to food for human consumption that is to be consumed off the
12premises where it is sold (other than alcoholic beverages,
13food consisting of or infused with adult use cannabis, soft
14drinks, and food that has been prepared for immediate
15consumption), the tax is imposed at the rate of 0%.
16    With respect to and prescription and nonprescription
17medicines, drugs, medical appliances, products classified as
18Class III medical devices by the United States Food and Drug
19Administration that are used for cancer treatment pursuant to
20a prescription, as well as any accessories and components
21related to those devices, modifications to a motor vehicle for
22the purpose of rendering it usable by a person with a
23disability, and insulin, blood sugar testing materials,
24syringes, and needles used by human diabetics, the tax is
25imposed at the rate of 1%. For the purposes of this Section,
26until September 1, 2009: the term "soft drinks" means any

 

 

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1complete, finished, ready-to-use, non-alcoholic drink, whether
2carbonated or not, including but not limited to soda water,
3cola, fruit juice, vegetable juice, carbonated water, and all
4other preparations commonly known as soft drinks of whatever
5kind or description that are contained in any closed or sealed
6bottle, can, carton, or container, regardless of size; but
7"soft drinks" does not include coffee, tea, non-carbonated
8water, infant formula, milk or milk products as defined in the
9Grade A Pasteurized Milk and Milk Products Act, or drinks
10containing 50% or more natural fruit or vegetable juice.
11    Notwithstanding any other provisions of this Act,
12beginning September 1, 2009, "soft drinks" means non-alcoholic
13beverages that contain natural or artificial sweeteners. "Soft
14drinks" do not include beverages that contain milk or milk
15products, soy, rice or similar milk substitutes, or greater
16than 50% of vegetable or fruit juice by volume.
17    Until August 1, 2009, and notwithstanding any other
18provisions of this Act, "food for human consumption that is to
19be consumed off the premises where it is sold" includes all
20food sold through a vending machine, except soft drinks and
21food products that are dispensed hot from a vending machine,
22regardless of the location of the vending machine. Beginning
23August 1, 2009, and notwithstanding any other provisions of
24this Act, "food for human consumption that is to be consumed
25off the premises where it is sold" includes all food sold
26through a vending machine, except soft drinks, candy, and food

 

 

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1products that are dispensed hot from a vending machine,
2regardless of the location of the vending machine.
3    Notwithstanding any other provisions of this Act,
4beginning September 1, 2009, "food for human consumption that
5is to be consumed off the premises where it is sold" does not
6include candy. For purposes of this Section, "candy" means a
7preparation of sugar, honey, or other natural or artificial
8sweeteners in combination with chocolate, fruits, nuts or
9other ingredients or flavorings in the form of bars, drops, or
10pieces. "Candy" does not include any preparation that contains
11flour or requires refrigeration.
12    Notwithstanding any other provisions of this Act,
13beginning September 1, 2009, "nonprescription medicines and
14drugs" does not include grooming and hygiene products. For
15purposes of this Section, "grooming and hygiene products"
16includes, but is not limited to, soaps and cleaning solutions,
17shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
18lotions and screens, unless those products are available by
19prescription only, regardless of whether the products meet the
20definition of "over-the-counter-drugs". For the purposes of
21this paragraph, "over-the-counter-drug" means a drug for human
22use that contains a label that identifies the product as a drug
23as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
24label includes:
25        (A) A "Drug Facts" panel; or
26        (B) A statement of the "active ingredient(s)" with a

 

 

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1    list of those ingredients contained in the compound,
2    substance or preparation.
3    Beginning on the effective date of this amendatory Act of
4the 98th General Assembly, "prescription and nonprescription
5medicines and drugs" includes medical cannabis purchased from
6a registered dispensing organization under the Compassionate
7Use of Medical Cannabis Program Act.
8    As used in this Section, "adult use cannabis" means
9cannabis subject to tax under the Cannabis Cultivation
10Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
11and does not include cannabis subject to tax under the
12Compassionate Use of Medical Cannabis Program Act.
13    If the property that is purchased at retail from a
14retailer is acquired outside Illinois and used outside
15Illinois before being brought to Illinois for use here and is
16taxable under this Act, the "selling price" on which the tax is
17computed shall be reduced by an amount that represents a
18reasonable allowance for depreciation for the period of prior
19out-of-state use.
20(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
21102-4, eff. 4-27-21.)
 
22    (35 ILCS 105/3a)  (from Ch. 120, par. 439.3a)
23    Sec. 3a. The tax imposed by the Act shall when collected be
24stated as a distinct item separate and apart from the selling
25price of the tangible personal property. However, where it is

 

 

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1not possible to state the sales tax separately in situations
2such as sales from vending machines or sales of liquor by the
3drink the Department may by rule exempt such sales from this
4requirement so long as purchasers are notified by a sign that
5the tax is included in the selling price.
6    In addition, retailers who sell items that would have been
7taxed at the 1% rate but for the 0% rate imposed under this
8amendatory Act of the 102nd General Assembly shall, to the
9extent feasible, include the following statement on any cash
10register tape, receipt, invoice, or sales ticket issued to
11customers: "From July 1, 2022 through July 1, 2023, the State
12of Illinois sales tax on groceries is 0%.". If it is not
13feasible for the retailer to include the statement on any cash
14register tape, receipt, invoice, or sales ticket issued to
15customers, then the retailer shall post the statement on a
16sign that is clearly visible to customers. The sign shall be no
17smaller than 4 inches by 8 inches.
18(Source: P.A. 84-229.)
 
19    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
20    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
21and trailers that are required to be registered with an agency
22of this State, each retailer required or authorized to collect
23the tax imposed by this Act shall pay to the Department the
24amount of such tax (except as otherwise provided) at the time
25when he is required to file his return for the period during

 

 

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1which such tax was collected, less a discount of 2.1% prior to
2January 1, 1990, and 1.75% on and after January 1, 1990, or $5
3per calendar year, whichever is greater, which is allowed to
4reimburse the retailer for expenses incurred in collecting the
5tax, keeping records, preparing and filing returns, remitting
6the tax and supplying data to the Department on request. The
7discount under this Section is not allowed for the 1.25%
8portion of taxes paid on aviation fuel that is subject to the
9revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1047133. When determining the discount allowed under this
11Section, retailers shall include the amount of tax that would
12have been due at the 1% rate but for the 0% rate imposed under
13this amendatory Act of the 102nd General Assembly. In the case
14of retailers who report and pay the tax on a transaction by
15transaction basis, as provided in this Section, such discount
16shall be taken with each such tax remittance instead of when
17such retailer files his periodic return. The discount allowed
18under this Section is allowed only for returns that are filed
19in the manner required by this Act. The Department may
20disallow the discount for retailers whose certificate of
21registration is revoked at the time the return is filed, but
22only if the Department's decision to revoke the certificate of
23registration has become final. A retailer need not remit that
24part of any tax collected by him to the extent that he is
25required to remit and does remit the tax imposed by the
26Retailers' Occupation Tax Act, with respect to the sale of the

 

 

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1same property.
2    Where such tangible personal property is sold under a
3conditional sales contract, or under any other form of sale
4wherein the payment of the principal sum, or a part thereof, is
5extended beyond the close of the period for which the return is
6filed, the retailer, in collecting the tax (except as to motor
7vehicles, watercraft, aircraft, and trailers that are required
8to be registered with an agency of this State), may collect for
9each tax return period, only the tax applicable to that part of
10the selling price actually received during such tax return
11period.
12    Except as provided in this Section, on or before the
13twentieth day of each calendar month, such retailer shall file
14a return for the preceding calendar month. Such return shall
15be filed on forms prescribed by the Department and shall
16furnish such information as the Department may reasonably
17require. The return shall include the gross receipts on food
18for human consumption that is to be consumed off the premises
19where it is sold (other than alcoholic beverages, food
20consisting of or infused with adult use cannabis, soft drinks,
21and food that has been prepared for immediate consumption)
22which were received during the preceding calendar month,
23quarter, or year, as appropriate, and upon which tax would
24have been due but for the 0% rate imposed under this amendatory
25Act of the 102nd General Assembly. The return shall also
26include the amount of tax that would have been due on food for

 

 

SB0157 Enrolled- 190 -LRB102 10128 HLH 16591 b

1human consumption that is to be consumed off the premises
2where it is sold (other than alcoholic beverages, food
3consisting of or infused with adult use cannabis, soft drinks,
4and food that has been prepared for immediate consumption) but
5for the 0% rate imposed under this amendatory Act of the 102nd
6General Assembly.
7    On and after January 1, 2018, except for returns for motor
8vehicles, watercraft, aircraft, and trailers that are required
9to be registered with an agency of this State, with respect to
10retailers whose annual gross receipts average $20,000 or more,
11all returns required to be filed pursuant to this Act shall be
12filed electronically. Retailers who demonstrate that they do
13not have access to the Internet or demonstrate hardship in
14filing electronically may petition the Department to waive the
15electronic filing requirement.
16    The Department may require returns to be filed on a
17quarterly basis. If so required, a return for each calendar
18quarter shall be filed on or before the twentieth day of the
19calendar month following the end of such calendar quarter. The
20taxpayer shall also file a return with the Department for each
21of the first two months of each calendar quarter, on or before
22the twentieth day of the following calendar month, stating:
23        1. The name of the seller;
24        2. The address of the principal place of business from
25    which he engages in the business of selling tangible
26    personal property at retail in this State;

 

 

SB0157 Enrolled- 191 -LRB102 10128 HLH 16591 b

1        3. The total amount of taxable receipts received by
2    him during the preceding calendar month from sales of
3    tangible personal property by him during such preceding
4    calendar month, including receipts from charge and time
5    sales, but less all deductions allowed by law;
6        4. The amount of credit provided in Section 2d of this
7    Act;
8        5. The amount of tax due;
9        5-5. The signature of the taxpayer; and
10        6. Such other reasonable information as the Department
11    may require.
12    Each retailer required or authorized to collect the tax
13imposed by this Act on aviation fuel sold at retail in this
14State during the preceding calendar month shall, instead of
15reporting and paying tax on aviation fuel as otherwise
16required by this Section, report and pay such tax on a separate
17aviation fuel tax return. The requirements related to the
18return shall be as otherwise provided in this Section.
19Notwithstanding any other provisions of this Act to the
20contrary, retailers collecting tax on aviation fuel shall file
21all aviation fuel tax returns and shall make all aviation fuel
22tax payments by electronic means in the manner and form
23required by the Department. For purposes of this Section,
24"aviation fuel" means jet fuel and aviation gasoline.
25    If a taxpayer fails to sign a return within 30 days after
26the proper notice and demand for signature by the Department,

 

 

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1the return shall be considered valid and any amount shown to be
2due on the return shall be deemed assessed.
3    Notwithstanding any other provision of this Act to the
4contrary, retailers subject to tax on cannabis shall file all
5cannabis tax returns and shall make all cannabis tax payments
6by electronic means in the manner and form required by the
7Department.
8    Beginning October 1, 1993, a taxpayer who has an average
9monthly tax liability of $150,000 or more shall make all
10payments required by rules of the Department by electronic
11funds transfer. Beginning October 1, 1994, a taxpayer who has
12an average monthly tax liability of $100,000 or more shall
13make all payments required by rules of the Department by
14electronic funds transfer. Beginning October 1, 1995, a
15taxpayer who has an average monthly tax liability of $50,000
16or more shall make all payments required by rules of the
17Department by electronic funds transfer. Beginning October 1,
182000, a taxpayer who has an annual tax liability of $200,000 or
19more shall make all payments required by rules of the
20Department by electronic funds transfer. The term "annual tax
21liability" shall be the sum of the taxpayer's liabilities
22under this Act, and under all other State and local occupation
23and use tax laws administered by the Department, for the
24immediately preceding calendar year. The term "average monthly
25tax liability" means the sum of the taxpayer's liabilities
26under this Act, and under all other State and local occupation

 

 

SB0157 Enrolled- 193 -LRB102 10128 HLH 16591 b

1and use tax laws administered by the Department, for the
2immediately preceding calendar year divided by 12. Beginning
3on October 1, 2002, a taxpayer who has a tax liability in the
4amount set forth in subsection (b) of Section 2505-210 of the
5Department of Revenue Law shall make all payments required by
6rules of the Department by electronic funds transfer.
7    Before August 1 of each year beginning in 1993, the
8Department shall notify all taxpayers required to make
9payments by electronic funds transfer. All taxpayers required
10to make payments by electronic funds transfer shall make those
11payments for a minimum of one year beginning on October 1.
12    Any taxpayer not required to make payments by electronic
13funds transfer may make payments by electronic funds transfer
14with the permission of the Department.
15    All taxpayers required to make payment by electronic funds
16transfer and any taxpayers authorized to voluntarily make
17payments by electronic funds transfer shall make those
18payments in the manner authorized by the Department.
19    The Department shall adopt such rules as are necessary to
20effectuate a program of electronic funds transfer and the
21requirements of this Section.
22    Before October 1, 2000, if the taxpayer's average monthly
23tax liability to the Department under this Act, the Retailers'
24Occupation Tax Act, the Service Occupation Tax Act, the
25Service Use Tax Act was $10,000 or more during the preceding 4
26complete calendar quarters, he shall file a return with the

 

 

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1Department each month by the 20th day of the month next
2following the month during which such tax liability is
3incurred and shall make payments to the Department on or
4before the 7th, 15th, 22nd and last day of the month during
5which such liability is incurred. On and after October 1,
62000, if the taxpayer's average monthly tax liability to the
7Department under this Act, the Retailers' Occupation Tax Act,
8the Service Occupation Tax Act, and the Service Use Tax Act was
9$20,000 or more during the preceding 4 complete calendar
10quarters, he shall file a return with the Department each
11month by the 20th day of the month next following the month
12during which such tax liability is incurred and shall make
13payment to the Department on or before the 7th, 15th, 22nd and
14last day of the month during which such liability is incurred.
15If the month during which such tax liability is incurred began
16prior to January 1, 1985, each payment shall be in an amount
17equal to 1/4 of the taxpayer's actual liability for the month
18or an amount set by the Department not to exceed 1/4 of the
19average monthly liability of the taxpayer to the Department
20for the preceding 4 complete calendar quarters (excluding the
21month of highest liability and the month of lowest liability
22in such 4 quarter period). If the month during which such tax
23liability is incurred begins on or after January 1, 1985, and
24prior to January 1, 1987, each payment shall be in an amount
25equal to 22.5% of the taxpayer's actual liability for the
26month or 27.5% of the taxpayer's liability for the same

 

 

SB0157 Enrolled- 195 -LRB102 10128 HLH 16591 b

1calendar month of the preceding year. If the month during
2which such tax liability is incurred begins on or after
3January 1, 1987, and prior to January 1, 1988, each payment
4shall be in an amount equal to 22.5% of the taxpayer's actual
5liability for the month or 26.25% of the taxpayer's liability
6for the same calendar month of the preceding year. If the month
7during which such tax liability is incurred begins on or after
8January 1, 1988, and prior to January 1, 1989, or begins on or
9after January 1, 1996, each payment shall be in an amount equal
10to 22.5% of the taxpayer's actual liability for the month or
1125% of the taxpayer's liability for the same calendar month of
12the preceding year. If the month during which such tax
13liability is incurred begins on or after January 1, 1989, and
14prior to January 1, 1996, each payment shall be in an amount
15equal to 22.5% of the taxpayer's actual liability for the
16month or 25% of the taxpayer's liability for the same calendar
17month of the preceding year or 100% of the taxpayer's actual
18liability for the quarter monthly reporting period. The amount
19of such quarter monthly payments shall be credited against the
20final tax liability of the taxpayer's return for that month.
21Before October 1, 2000, once applicable, the requirement of
22the making of quarter monthly payments to the Department shall
23continue until such taxpayer's average monthly liability to
24the Department during the preceding 4 complete calendar
25quarters (excluding the month of highest liability and the
26month of lowest liability) is less than $9,000, or until such

 

 

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1taxpayer's average monthly liability to the Department as
2computed for each calendar quarter of the 4 preceding complete
3calendar quarter period is less than $10,000. However, if a
4taxpayer can show the Department that a substantial change in
5the taxpayer's business has occurred which causes the taxpayer
6to anticipate that his average monthly tax liability for the
7reasonably foreseeable future will fall below the $10,000
8threshold stated above, then such taxpayer may petition the
9Department for change in such taxpayer's reporting status. On
10and after October 1, 2000, once applicable, the requirement of
11the making of quarter monthly payments to the Department shall
12continue until such taxpayer's average monthly liability to
13the Department during the preceding 4 complete calendar
14quarters (excluding the month of highest liability and the
15month of lowest liability) is less than $19,000 or until such
16taxpayer's average monthly liability to the Department as
17computed for each calendar quarter of the 4 preceding complete
18calendar quarter period is less than $20,000. However, if a
19taxpayer can show the Department that a substantial change in
20the taxpayer's business has occurred which causes the taxpayer
21to anticipate that his average monthly tax liability for the
22reasonably foreseeable future will fall below the $20,000
23threshold stated above, then such taxpayer may petition the
24Department for a change in such taxpayer's reporting status.
25The Department shall change such taxpayer's reporting status
26unless it finds that such change is seasonal in nature and not

 

 

SB0157 Enrolled- 197 -LRB102 10128 HLH 16591 b

1likely to be long term. Quarter monthly payment status shall
2be determined under this paragraph as if the rate reduction to
30% in this amendatory Act of the 102nd General Assembly on food
4for human consumption that is to be consumed off the premises
5where it is sold (other than alcoholic beverages, food
6consisting of or infused with adult use cannabis, soft drinks,
7and food that has been prepared for immediate consumption) had
8not occurred. For quarter monthly payments due under this
9paragraph on or after July 1, 2023 and through June 30, 2024,
10"25% of the taxpayer's liability for the same calendar month
11of the preceding year" shall be determined as if the rate
12reduction to 0% in this amendatory Act of the 102nd General
13Assembly had not occurred. If any such quarter monthly payment
14is not paid at the time or in the amount required by this
15Section, then the taxpayer shall be liable for penalties and
16interest on the difference between the minimum amount due and
17the amount of such quarter monthly payment actually and timely
18paid, except insofar as the taxpayer has previously made
19payments for that month to the Department in excess of the
20minimum payments previously due as provided in this Section.
21The Department shall make reasonable rules and regulations to
22govern the quarter monthly payment amount and quarter monthly
23payment dates for taxpayers who file on other than a calendar
24monthly basis.
25    If any such payment provided for in this Section exceeds
26the taxpayer's liabilities under this Act, the Retailers'

 

 

SB0157 Enrolled- 198 -LRB102 10128 HLH 16591 b

1Occupation Tax Act, the Service Occupation Tax Act and the
2Service Use Tax Act, as shown by an original monthly return,
3the Department shall issue to the taxpayer a credit memorandum
4no later than 30 days after the date of payment, which
5memorandum may be submitted by the taxpayer to the Department
6in payment of tax liability subsequently to be remitted by the
7taxpayer to the Department or be assigned by the taxpayer to a
8similar taxpayer under this Act, the Retailers' Occupation Tax
9Act, the Service Occupation Tax Act or the Service Use Tax Act,
10in accordance with reasonable rules and regulations to be
11prescribed by the Department, except that if such excess
12payment is shown on an original monthly return and is made
13after December 31, 1986, no credit memorandum shall be issued,
14unless requested by the taxpayer. If no such request is made,
15the taxpayer may credit such excess payment against tax
16liability subsequently to be remitted by the taxpayer to the
17Department under this Act, the Retailers' Occupation Tax Act,
18the Service Occupation Tax Act or the Service Use Tax Act, in
19accordance with reasonable rules and regulations prescribed by
20the Department. If the Department subsequently determines that
21all or any part of the credit taken was not actually due to the
22taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
23be reduced by 2.1% or 1.75% of the difference between the
24credit taken and that actually due, and the taxpayer shall be
25liable for penalties and interest on such difference.
26    If the retailer is otherwise required to file a monthly

 

 

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1return and if the retailer's average monthly tax liability to
2the Department does not exceed $200, the Department may
3authorize his returns to be filed on a quarter annual basis,
4with the return for January, February, and March of a given
5year being due by April 20 of such year; with the return for
6April, May and June of a given year being due by July 20 of
7such year; with the return for July, August and September of a
8given year being due by October 20 of such year, and with the
9return for October, November and December of a given year
10being due by January 20 of the following year.
11    If the retailer is otherwise required to file a monthly or
12quarterly return and if the retailer's average monthly tax
13liability to the Department does not exceed $50, the
14Department may authorize his returns to be filed on an annual
15basis, with the return for a given year being due by January 20
16of the following year.
17    Such quarter annual and annual returns, as to form and
18substance, shall be subject to the same requirements as
19monthly returns.
20    Notwithstanding any other provision in this Act concerning
21the time within which a retailer may file his return, in the
22case of any retailer who ceases to engage in a kind of business
23which makes him responsible for filing returns under this Act,
24such retailer shall file a final return under this Act with the
25Department not more than one month after discontinuing such
26business.

 

 

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1    In addition, with respect to motor vehicles, watercraft,
2aircraft, and trailers that are required to be registered with
3an agency of this State, except as otherwise provided in this
4Section, every retailer selling this kind of tangible personal
5property shall file, with the Department, upon a form to be
6prescribed and supplied by the Department, a separate return
7for each such item of tangible personal property which the
8retailer sells, except that if, in the same transaction, (i) a
9retailer of aircraft, watercraft, motor vehicles or trailers
10transfers more than one aircraft, watercraft, motor vehicle or
11trailer to another aircraft, watercraft, motor vehicle or
12trailer retailer for the purpose of resale or (ii) a retailer
13of aircraft, watercraft, motor vehicles, or trailers transfers
14more than one aircraft, watercraft, motor vehicle, or trailer
15to a purchaser for use as a qualifying rolling stock as
16provided in Section 3-55 of this Act, then that seller may
17report the transfer of all the aircraft, watercraft, motor
18vehicles or trailers involved in that transaction to the
19Department on the same uniform invoice-transaction reporting
20return form. For purposes of this Section, "watercraft" means
21a Class 2, Class 3, or Class 4 watercraft as defined in Section
223-2 of the Boat Registration and Safety Act, a personal
23watercraft, or any boat equipped with an inboard motor.
24    In addition, with respect to motor vehicles, watercraft,
25aircraft, and trailers that are required to be registered with
26an agency of this State, every person who is engaged in the

 

 

SB0157 Enrolled- 201 -LRB102 10128 HLH 16591 b

1business of leasing or renting such items and who, in
2connection with such business, sells any such item to a
3retailer for the purpose of resale is, notwithstanding any
4other provision of this Section to the contrary, authorized to
5meet the return-filing requirement of this Act by reporting
6the transfer of all the aircraft, watercraft, motor vehicles,
7or trailers transferred for resale during a month to the
8Department on the same uniform invoice-transaction reporting
9return form on or before the 20th of the month following the
10month in which the transfer takes place. Notwithstanding any
11other provision of this Act to the contrary, all returns filed
12under this paragraph must be filed by electronic means in the
13manner and form as required by the Department.
14    The transaction reporting return in the case of motor
15vehicles or trailers that are required to be registered with
16an agency of this State, shall be the same document as the
17Uniform Invoice referred to in Section 5-402 of the Illinois
18Vehicle Code and must show the name and address of the seller;
19the name and address of the purchaser; the amount of the
20selling price including the amount allowed by the retailer for
21traded-in property, if any; the amount allowed by the retailer
22for the traded-in tangible personal property, if any, to the
23extent to which Section 2 of this Act allows an exemption for
24the value of traded-in property; the balance payable after
25deducting such trade-in allowance from the total selling
26price; the amount of tax due from the retailer with respect to

 

 

SB0157 Enrolled- 202 -LRB102 10128 HLH 16591 b

1such transaction; the amount of tax collected from the
2purchaser by the retailer on such transaction (or satisfactory
3evidence that such tax is not due in that particular instance,
4if that is claimed to be the fact); the place and date of the
5sale; a sufficient identification of the property sold; such
6other information as is required in Section 5-402 of the
7Illinois Vehicle Code, and such other information as the
8Department may reasonably require.
9    The transaction reporting return in the case of watercraft
10and aircraft must show the name and address of the seller; the
11name and address of the purchaser; the amount of the selling
12price including the amount allowed by the retailer for
13traded-in property, if any; the amount allowed by the retailer
14for the traded-in tangible personal property, if any, to the
15extent to which Section 2 of this Act allows an exemption for
16the value of traded-in property; the balance payable after
17deducting such trade-in allowance from the total selling
18price; the amount of tax due from the retailer with respect to
19such transaction; the amount of tax collected from the
20purchaser by the retailer on such transaction (or satisfactory
21evidence that such tax is not due in that particular instance,
22if that is claimed to be the fact); the place and date of the
23sale, a sufficient identification of the property sold, and
24such other information as the Department may reasonably
25require.
26    Such transaction reporting return shall be filed not later

 

 

SB0157 Enrolled- 203 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 204 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 205 -LRB102 10128 HLH 16591 b

1the purchaser thereafter returns such tangible personal
2property and the retailer refunds the selling price thereof to
3the purchaser, such retailer shall also refund, to the
4purchaser, the tax so collected from the purchaser. When
5filing his return for the period in which he refunds such tax
6to the purchaser, the retailer may deduct the amount of the tax
7so refunded by him to the purchaser from any other use tax
8which such retailer may be required to pay or remit to the
9Department, as shown by such return, if the amount of the tax
10to be deducted was previously remitted to the Department by
11such retailer. If the retailer has not previously remitted the
12amount of such tax to the Department, he is entitled to no
13deduction under this Act upon refunding such tax to the
14purchaser.
15    Any retailer filing a return under this Section shall also
16include (for the purpose of paying tax thereon) the total tax
17covered by such return upon the selling price of tangible
18personal property purchased by him at retail from a retailer,
19but as to which the tax imposed by this Act was not collected
20from the retailer filing such return, and such retailer shall
21remit the amount of such tax to the Department when filing such
22return.
23    If experience indicates such action to be practicable, the
24Department may prescribe and furnish a combination or joint
25return which will enable retailers, who are required to file
26returns hereunder and also under the Retailers' Occupation Tax

 

 

SB0157 Enrolled- 206 -LRB102 10128 HLH 16591 b

1Act, to furnish all the return information required by both
2Acts on the one form.
3    Where the retailer has more than one business registered
4with the Department under separate registration under this
5Act, such retailer may not file each return that is due as a
6single return covering all such registered businesses, but
7shall file separate returns for each such registered business.
8    Beginning January 1, 1990, each month the Department shall
9pay into the State and Local Sales Tax Reform Fund, a special
10fund in the State Treasury which is hereby created, the net
11revenue realized for the preceding month from the 1% tax
12imposed under this Act.
13    Beginning January 1, 1990, each month the Department shall
14pay into the County and Mass Transit District Fund 4% of the
15net revenue realized for the preceding month from the 6.25%
16general rate on the selling price of tangible personal
17property which is purchased outside Illinois at retail from a
18retailer and which is titled or registered by an agency of this
19State's government.
20    Beginning January 1, 1990, each month the Department shall
21pay into the State and Local Sales Tax Reform Fund, a special
22fund in the State Treasury, 20% of the net revenue realized for
23the preceding month from the 6.25% general rate on the selling
24price of tangible personal property, other than (i) tangible
25personal property which is purchased outside Illinois at
26retail from a retailer and which is titled or registered by an

 

 

SB0157 Enrolled- 207 -LRB102 10128 HLH 16591 b

1agency of this State's government and (ii) aviation fuel sold
2on or after December 1, 2019. This exception for aviation fuel
3only applies for so long as the revenue use requirements of 49
4U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
5    For aviation fuel sold on or after December 1, 2019, each
6month the Department shall pay into the State Aviation Program
7Fund 20% of the net revenue realized for the preceding month
8from the 6.25% general rate on the selling price of aviation
9fuel, less an amount estimated by the Department to be
10required for refunds of the 20% portion of the tax on aviation
11fuel under this Act, which amount shall be deposited into the
12Aviation Fuel Sales Tax Refund Fund. The Department shall only
13pay moneys into the State Aviation Program Fund and the
14Aviation Fuels Sales Tax Refund Fund under this Act for so long
15as the revenue use requirements of 49 U.S.C. 47107(b) and 49
16U.S.C. 47133 are binding on the State.
17    Beginning August 1, 2000, each month the Department shall
18pay into the State and Local Sales Tax Reform Fund 100% of the
19net revenue realized for the preceding month from the 1.25%
20rate on the selling price of motor fuel and gasohol. Beginning
21September 1, 2010, each month the Department shall pay into
22the State and Local Sales Tax Reform Fund 100% of the net
23revenue realized for the preceding month from the 1.25% rate
24on the selling price of sales tax holiday items.
25    Beginning January 1, 1990, each month the Department shall
26pay into the Local Government Tax Fund 16% of the net revenue

 

 

SB0157 Enrolled- 208 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 209 -LRB102 10128 HLH 16591 b

1Storage Tank Fund during the prior year, as certified annually
2by the Illinois Environmental Protection Agency, but the total
3payment into the Underground Storage Tank Fund under this Act,
4the Service Use Tax Act, the Service Occupation Tax Act, and
5the Retailers' Occupation Tax Act shall not exceed $18,000,000
6in any State fiscal year. As used in this paragraph, the
7"average monthly deficit" shall be equal to the difference
8between the average monthly claims for payment by the fund and
9the average monthly revenues deposited into the fund,
10excluding payments made pursuant to this paragraph.
11    Beginning July 1, 2015, of the remainder of the moneys
12received by the Department under this Act, the Service Use Tax
13Act, the Service Occupation Tax Act, and the Retailers'
14Occupation Tax Act, each month the Department shall deposit
15$500,000 into the State Crime Laboratory Fund.
16    Of the remainder of the moneys received by the Department
17pursuant to this Act, (a) 1.75% thereof shall be paid into the
18Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
19and after July 1, 1989, 3.8% thereof shall be paid into the
20Build Illinois Fund; provided, however, that if in any fiscal
21year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
22may be, of the moneys received by the Department and required
23to be paid into the Build Illinois Fund pursuant to Section 3
24of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
25Act, Section 9 of the Service Use Tax Act, and Section 9 of the
26Service Occupation Tax Act, such Acts being hereinafter called

 

 

SB0157 Enrolled- 210 -LRB102 10128 HLH 16591 b

1the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
2may be, of moneys being hereinafter called the "Tax Act
3Amount", and (2) the amount transferred to the Build Illinois
4Fund from the State and Local Sales Tax Reform Fund shall be
5less than the Annual Specified Amount (as defined in Section 3
6of the Retailers' Occupation Tax Act), an amount equal to the
7difference shall be immediately paid into the Build Illinois
8Fund from other moneys received by the Department pursuant to
9the Tax Acts; and further provided, that if on the last
10business day of any month the sum of (1) the Tax Act Amount
11required to be deposited into the Build Illinois Bond Account
12in the Build Illinois Fund during such month and (2) the amount
13transferred during such month to the Build Illinois Fund from
14the State and Local Sales Tax Reform Fund shall have been less
15than 1/12 of the Annual Specified Amount, an amount equal to
16the difference shall be immediately paid into the Build
17Illinois Fund from other moneys received by the Department
18pursuant to the Tax Acts; and, further provided, that in no
19event shall the payments required under the preceding proviso
20result in aggregate payments into the Build Illinois Fund
21pursuant to this clause (b) for any fiscal year in excess of
22the greater of (i) the Tax Act Amount or (ii) the Annual
23Specified Amount for such fiscal year; and, further provided,
24that the amounts payable into the Build Illinois Fund under
25this clause (b) shall be payable only until such time as the
26aggregate amount on deposit under each trust indenture

 

 

SB0157 Enrolled- 211 -LRB102 10128 HLH 16591 b

1securing Bonds issued and outstanding pursuant to the Build
2Illinois Bond Act is sufficient, taking into account any
3future investment income, to fully provide, in accordance with
4such indenture, for the defeasance of or the payment of the
5principal of, premium, if any, and interest on the Bonds
6secured by such indenture and on any Bonds expected to be
7issued thereafter and all fees and costs payable with respect
8thereto, all as certified by the Director of the Bureau of the
9Budget (now Governor's Office of Management and Budget). If on
10the last business day of any month in which Bonds are
11outstanding pursuant to the Build Illinois Bond Act, the
12aggregate of the moneys deposited in the Build Illinois Bond
13Account in the Build Illinois Fund in such month shall be less
14than the amount required to be transferred in such month from
15the Build Illinois Bond Account to the Build Illinois Bond
16Retirement and Interest Fund pursuant to Section 13 of the
17Build Illinois Bond Act, an amount equal to such deficiency
18shall be immediately paid from other moneys received by the
19Department pursuant to the Tax Acts to the Build Illinois
20Fund; provided, however, that any amounts paid to the Build
21Illinois Fund in any fiscal year pursuant to this sentence
22shall be deemed to constitute payments pursuant to clause (b)
23of the preceding sentence and shall reduce the amount
24otherwise payable for such fiscal year pursuant to clause (b)
25of the preceding sentence. The moneys received by the
26Department pursuant to this Act and required to be deposited

 

 

SB0157 Enrolled- 212 -LRB102 10128 HLH 16591 b

1into the Build Illinois Fund are subject to the pledge, claim
2and charge set forth in Section 12 of the Build Illinois Bond
3Act.
4    Subject to payment of amounts into the Build Illinois Fund
5as provided in the preceding paragraph or in any amendment
6thereto hereafter enacted, the following specified monthly
7installment of the amount requested in the certificate of the
8Chairman of the Metropolitan Pier and Exposition Authority
9provided under Section 8.25f of the State Finance Act, but not
10in excess of the sums designated as "Total Deposit", shall be
11deposited in the aggregate from collections under Section 9 of
12the Use Tax Act, Section 9 of the Service Use Tax Act, Section
139 of the Service Occupation Tax Act, and Section 3 of the
14Retailers' Occupation Tax Act into the McCormick Place
15Expansion Project Fund in the specified fiscal years.
16Fiscal YearTotal Deposit
171993         $0
181994 53,000,000
191995 58,000,000
201996 61,000,000
211997 64,000,000
221998 68,000,000
231999 71,000,000
242000 75,000,000
252001 80,000,000
262002 93,000,000

 

 

SB0157 Enrolled- 213 -LRB102 10128 HLH 16591 b

12003 99,000,000
22004103,000,000
32005108,000,000
42006113,000,000
52007119,000,000
62008126,000,000
72009132,000,000
82010139,000,000
92011146,000,000
102012153,000,000
112013161,000,000
122014170,000,000
132015179,000,000
142016189,000,000
152017199,000,000
162018210,000,000
172019221,000,000
182020233,000,000
192021300,000,000
202022300,000,000
212023300,000,000
222024 300,000,000
232025 300,000,000
242026 300,000,000
252027 375,000,000
262028 375,000,000

 

 

SB0157 Enrolled- 214 -LRB102 10128 HLH 16591 b

12029 375,000,000
22030 375,000,000
32031 375,000,000
42032 375,000,000
52033 375,000,000
62034375,000,000
72035375,000,000
82036450,000,000
9and
10each fiscal year
11thereafter that bonds
12are outstanding under
13Section 13.2 of the
14Metropolitan Pier and
15Exposition Authority Act,
16but not after fiscal year 2060.
17    Beginning July 20, 1993 and in each month of each fiscal
18year thereafter, one-eighth of the amount requested in the
19certificate of the Chairman of the Metropolitan Pier and
20Exposition Authority for that fiscal year, less the amount
21deposited into the McCormick Place Expansion Project Fund by
22the State Treasurer in the respective month under subsection
23(g) of Section 13 of the Metropolitan Pier and Exposition
24Authority Act, plus cumulative deficiencies in the deposits
25required under this Section for previous months and years,
26shall be deposited into the McCormick Place Expansion Project

 

 

SB0157 Enrolled- 215 -LRB102 10128 HLH 16591 b

1Fund, until the full amount requested for the fiscal year, but
2not in excess of the amount specified above as "Total
3Deposit", has been deposited.
4    Subject to payment of amounts into the Capital Projects
5Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
6and the McCormick Place Expansion Project Fund pursuant to the
7preceding paragraphs or in any amendments thereto hereafter
8enacted, for aviation fuel sold on or after December 1, 2019,
9the Department shall each month deposit into the Aviation Fuel
10Sales Tax Refund Fund an amount estimated by the Department to
11be required for refunds of the 80% portion of the tax on
12aviation fuel under this Act. The Department shall only
13deposit moneys into the Aviation Fuel Sales Tax Refund Fund
14under this paragraph for so long as the revenue use
15requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
16binding on the State.
17    Subject to payment of amounts into the Build Illinois Fund
18and the McCormick Place Expansion Project Fund pursuant to the
19preceding paragraphs or in any amendments thereto hereafter
20enacted, beginning July 1, 1993 and ending on September 30,
212013, the Department shall each month pay into the Illinois
22Tax Increment Fund 0.27% of 80% of the net revenue realized for
23the preceding month from the 6.25% general rate on the selling
24price of tangible personal property.
25    Subject to payment of amounts into the Build Illinois Fund
26and the McCormick Place Expansion Project Fund pursuant to the

 

 

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1preceding paragraphs or in any amendments thereto hereafter
2enacted, beginning with the receipt of the first report of
3taxes paid by an eligible business and continuing for a
425-year period, the Department shall each month pay into the
5Energy Infrastructure Fund 80% of the net revenue realized
6from the 6.25% general rate on the selling price of
7Illinois-mined coal that was sold to an eligible business. For
8purposes of this paragraph, the term "eligible business" means
9a new electric generating facility certified pursuant to
10Section 605-332 of the Department of Commerce and Economic
11Opportunity Law of the Civil Administrative Code of Illinois.
12    Subject to payment of amounts into the Build Illinois
13Fund, the McCormick Place Expansion Project Fund, the Illinois
14Tax Increment Fund, and the Energy Infrastructure Fund
15pursuant to the preceding paragraphs or in any amendments to
16this Section hereafter enacted, beginning on the first day of
17the first calendar month to occur on or after August 26, 2014
18(the effective date of Public Act 98-1098), each month, from
19the collections made under Section 9 of the Use Tax Act,
20Section 9 of the Service Use Tax Act, Section 9 of the Service
21Occupation Tax Act, and Section 3 of the Retailers' Occupation
22Tax Act, the Department shall pay into the Tax Compliance and
23Administration Fund, to be used, subject to appropriation, to
24fund additional auditors and compliance personnel at the
25Department of Revenue, an amount equal to 1/12 of 5% of 80% of
26the cash receipts collected during the preceding fiscal year

 

 

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1by the Audit Bureau of the Department under the Use Tax Act,
2the Service Use Tax Act, the Service Occupation Tax Act, the
3Retailers' Occupation Tax Act, and associated local occupation
4and use taxes administered by the Department.
5    Subject to payments of amounts into the Build Illinois
6Fund, the McCormick Place Expansion Project Fund, the Illinois
7Tax Increment Fund, the Energy Infrastructure Fund, and the
8Tax Compliance and Administration Fund as provided in this
9Section, beginning on July 1, 2018 the Department shall pay
10each month into the Downstate Public Transportation Fund the
11moneys required to be so paid under Section 2-3 of the
12Downstate Public Transportation Act.
13    Subject to successful execution and delivery of a
14public-private agreement between the public agency and private
15entity and completion of the civic build, beginning on July 1,
162023, of the remainder of the moneys received by the
17Department under the Use Tax Act, the Service Use Tax Act, the
18Service Occupation Tax Act, and this Act, the Department shall
19deposit the following specified deposits in the aggregate from
20collections under the Use Tax Act, the Service Use Tax Act, the
21Service Occupation Tax Act, and the Retailers' Occupation Tax
22Act, as required under Section 8.25g of the State Finance Act
23for distribution consistent with the Public-Private
24Partnership for Civic and Transit Infrastructure Project Act.
25The moneys received by the Department pursuant to this Act and
26required to be deposited into the Civic and Transit

 

 

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1Infrastructure Fund are subject to the pledge, claim, and
2charge set forth in Section 25-55 of the Public-Private
3Partnership for Civic and Transit Infrastructure Project Act.
4As used in this paragraph, "civic build", "private entity",
5"public-private agreement", and "public agency" have the
6meanings provided in Section 25-10 of the Public-Private
7Partnership for Civic and Transit Infrastructure Project Act.
8        Fiscal Year............................Total Deposit
9        2024....................................$200,000,000
10        2025....................................$206,000,000
11        2026....................................$212,200,000
12        2027....................................$218,500,000
13        2028....................................$225,100,000
14        2029....................................$288,700,000
15        2030....................................$298,900,000
16        2031....................................$309,300,000
17        2032....................................$320,100,000
18        2033....................................$331,200,000
19        2034....................................$341,200,000
20        2035....................................$351,400,000
21        2036....................................$361,900,000
22        2037....................................$372,800,000
23        2038....................................$384,000,000
24        2039....................................$395,500,000
25        2040....................................$407,400,000
26        2041....................................$419,600,000

 

 

SB0157 Enrolled- 219 -LRB102 10128 HLH 16591 b

1        2042....................................$432,200,000
2        2043....................................$445,100,000
3    Beginning July 1, 2021 and until July 1, 2022, subject to
4the payment of amounts into the State and Local Sales Tax
5Reform Fund, the Build Illinois Fund, the McCormick Place
6Expansion Project Fund, the Illinois Tax Increment Fund, the
7Energy Infrastructure Fund, and the Tax Compliance and
8Administration Fund as provided in this Section, the
9Department shall pay each month into the Road Fund the amount
10estimated to represent 16% of the net revenue realized from
11the taxes imposed on motor fuel and gasohol. Beginning July 1,
122022 and until July 1, 2023, subject to the payment of amounts
13into the State and Local Sales Tax Reform Fund, the Build
14Illinois Fund, the McCormick Place Expansion Project Fund, the
15Illinois Tax Increment Fund, the Energy Infrastructure Fund,
16and the Tax Compliance and Administration Fund as provided in
17this Section, the Department shall pay each month into the
18Road Fund the amount estimated to represent 32% of the net
19revenue realized from the taxes imposed on motor fuel and
20gasohol. Beginning July 1, 2023 and until July 1, 2024,
21subject to the payment of amounts into the State and Local
22Sales Tax Reform Fund, the Build Illinois Fund, the McCormick
23Place Expansion Project Fund, the Illinois Tax Increment Fund,
24the Energy Infrastructure Fund, and the Tax Compliance and
25Administration Fund as provided in this Section, the
26Department shall pay each month into the Road Fund the amount

 

 

SB0157 Enrolled- 220 -LRB102 10128 HLH 16591 b

1estimated to represent 48% of the net revenue realized from
2the taxes imposed on motor fuel and gasohol. Beginning July 1,
32024 and until July 1, 2025, subject to the payment of amounts
4into the State and Local Sales Tax Reform Fund, the Build
5Illinois Fund, the McCormick Place Expansion Project Fund, the
6Illinois Tax Increment Fund, the Energy Infrastructure Fund,
7and the Tax Compliance and Administration Fund as provided in
8this Section, the Department shall pay each month into the
9Road Fund the amount estimated to represent 64% of the net
10revenue realized from the taxes imposed on motor fuel and
11gasohol. Beginning on July 1, 2025, subject to the payment of
12amounts into the State and Local Sales Tax Reform Fund, the
13Build Illinois Fund, the McCormick Place Expansion Project
14Fund, the Illinois Tax Increment Fund, the Energy
15Infrastructure Fund, and the Tax Compliance and Administration
16Fund as provided in this Section, the Department shall pay
17each month into the Road Fund the amount estimated to
18represent 80% of the net revenue realized from the taxes
19imposed on motor fuel and gasohol. As used in this paragraph
20"motor fuel" has the meaning given to that term in Section 1.1
21of the Motor Fuel Tax Law Act, and "gasohol" has the meaning
22given to that term in Section 3-40 of this Act.
23    Of the remainder of the moneys received by the Department
24pursuant to this Act, 75% thereof shall be paid into the State
25Treasury and 25% shall be reserved in a special account and
26used only for the transfer to the Common School Fund as part of

 

 

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1the monthly transfer from the General Revenue Fund in
2accordance with Section 8a of the State Finance Act.
3    As soon as possible after the first day of each month, upon
4certification of the Department of Revenue, the Comptroller
5shall order transferred and the Treasurer shall transfer from
6the General Revenue Fund to the Motor Fuel Tax Fund an amount
7equal to 1.7% of 80% of the net revenue realized under this Act
8for the second preceding month. Beginning April 1, 2000, this
9transfer is no longer required and shall not be made.
10    Net revenue realized for a month shall be the revenue
11collected by the State pursuant to this Act, less the amount
12paid out during that month as refunds to taxpayers for
13overpayment of liability.
14    For greater simplicity of administration, manufacturers,
15importers and wholesalers whose products are sold at retail in
16Illinois by numerous retailers, and who wish to do so, may
17assume the responsibility for accounting and paying to the
18Department all tax accruing under this Act with respect to
19such sales, if the retailers who are affected do not make
20written objection to the Department to this arrangement.
21(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
22100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
2315, Section 15-10, eff. 6-5-19; 101-10, Article 25, Section
2425-105, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
256-28-19; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
 

 

 

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1    Section 60-20. The Service Use Tax Act is amended by
2changing Sections 3-10 and 9 as follows:
 
3    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
4    Sec. 3-10. Rate of tax. Unless otherwise provided in this
5Section, the tax imposed by this Act is at the rate of 6.25% of
6the selling price of tangible personal property transferred as
7an incident to the sale of service, but, for the purpose of
8computing this tax, in no event shall the selling price be less
9than the cost price of the property to the serviceman.
10    Beginning on July 1, 2000 and through December 31, 2000,
11with respect to motor fuel, as defined in Section 1.1 of the
12Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
13the Use Tax Act, the tax is imposed at the rate of 1.25%.
14    With respect to gasohol, as defined in the Use Tax Act, the
15tax imposed by this Act applies to (i) 70% of the selling price
16of property transferred as an incident to the sale of service
17on or after January 1, 1990, and before July 1, 2003, (ii) 80%
18of the selling price of property transferred as an incident to
19the sale of service on or after July 1, 2003 and on or before
20July 1, 2017, and (iii) 100% of the selling price thereafter.
21If, at any time, however, the tax under this Act on sales of
22gasohol, as defined in the Use Tax Act, is imposed at the rate
23of 1.25%, then the tax imposed by this Act applies to 100% of
24the proceeds of sales of gasohol made during that time.
25    With respect to majority blended ethanol fuel, as defined

 

 

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1in the Use Tax Act, the tax imposed by this Act does not apply
2to the selling price of property transferred as an incident to
3the sale of service on or after July 1, 2003 and on or before
4December 31, 2023 but applies to 100% of the selling price
5thereafter.
6    With respect to biodiesel blends, as defined in the Use
7Tax Act, with no less than 1% and no more than 10% biodiesel,
8the tax imposed by this Act applies to (i) 80% of the selling
9price of property transferred as an incident to the sale of
10service on or after July 1, 2003 and on or before December 31,
112018 and (ii) 100% of the proceeds of the selling price
12thereafter. If, at any time, however, the tax under this Act on
13sales of biodiesel blends, as defined in the Use Tax Act, with
14no less than 1% and no more than 10% biodiesel is imposed at
15the rate of 1.25%, then the tax imposed by this Act applies to
16100% of the proceeds of sales of biodiesel blends with no less
17than 1% and no more than 10% biodiesel made during that time.
18    With respect to 100% biodiesel, as defined in the Use Tax
19Act, and biodiesel blends, as defined in the Use Tax Act, with
20more than 10% but no more than 99% biodiesel, the tax imposed
21by this Act does not apply to the proceeds of the selling price
22of property transferred as an incident to the sale of service
23on or after July 1, 2003 and on or before December 31, 2023 but
24applies to 100% of the selling price thereafter.
25    At the election of any registered serviceman made for each
26fiscal year, sales of service in which the aggregate annual

 

 

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1cost price of tangible personal property transferred as an
2incident to the sales of service is less than 35%, or 75% in
3the case of servicemen transferring prescription drugs or
4servicemen engaged in graphic arts production, of the
5aggregate annual total gross receipts from all sales of
6service, the tax imposed by this Act shall be based on the
7serviceman's cost price of the tangible personal property
8transferred as an incident to the sale of those services.
9    Until July 1, 2022 and beginning again on July 1, 2023, the
10The tax shall be imposed at the rate of 1% on food prepared for
11immediate consumption and transferred incident to a sale of
12service subject to this Act or the Service Occupation Tax Act
13by an entity licensed under the Hospital Licensing Act, the
14Nursing Home Care Act, the Assisted Living and Shared Housing
15Act, the ID/DD Community Care Act, the MC/DD Act, the
16Specialized Mental Health Rehabilitation Act of 2013, or the
17Child Care Act of 1969, or an entity that holds a permit issued
18pursuant to the Life Care Facilities Act. Until July 1, 2022
19and beginning again on July 1, 2023, the The tax shall also be
20imposed at the rate of 1% on food for human consumption that is
21to be consumed off the premises where it is sold (other than
22alcoholic beverages, food consisting of or infused with adult
23use cannabis, soft drinks, and food that has been prepared for
24immediate consumption and is not otherwise included in this
25paragraph).
26    Beginning on July 1, 2022 and until July 1, 2023, the tax

 

 

SB0157 Enrolled- 225 -LRB102 10128 HLH 16591 b

1shall be imposed at the rate of 0% on food prepared for
2immediate consumption and transferred incident to a sale of
3service subject to this Act or the Service Occupation Tax Act
4by an entity licensed under the Hospital Licensing Act, the
5Nursing Home Care Act, the Assisted Living and Shared Housing
6Act, the ID/DD Community Care Act, the MC/DD Act, the
7Specialized Mental Health Rehabilitation Act of 2013, or the
8Child Care Act of 1969, or an entity that holds a permit issued
9pursuant to the Life Care Facilities Act. Beginning on July 1,
102022 and until July 1, 2023, the tax shall also be imposed at
11the rate of 0% on food for human consumption that is to be
12consumed off the premises where it is sold (other than
13alcoholic beverages, food consisting of or infused with adult
14use cannabis, soft drinks, and food that has been prepared for
15immediate consumption and is not otherwise included in this
16paragraph).
17    The tax shall also be imposed at the rate of 1% on and
18prescription and nonprescription medicines, drugs, medical
19appliances, products classified as Class III medical devices
20by the United States Food and Drug Administration that are
21used for cancer treatment pursuant to a prescription, as well
22as any accessories and components related to those devices,
23modifications to a motor vehicle for the purpose of rendering
24it usable by a person with a disability, and insulin, blood
25sugar testing materials, syringes, and needles used by human
26diabetics. For the purposes of this Section, until September

 

 

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11, 2009: the term "soft drinks" means any complete, finished,
2ready-to-use, non-alcoholic drink, whether carbonated or not,
3including but not limited to soda water, cola, fruit juice,
4vegetable juice, carbonated water, and all other preparations
5commonly known as soft drinks of whatever kind or description
6that are contained in any closed or sealed bottle, can,
7carton, or container, regardless of size; but "soft drinks"
8does not include coffee, tea, non-carbonated water, infant
9formula, milk or milk products as defined in the Grade A
10Pasteurized Milk and Milk Products Act, or drinks containing
1150% or more natural fruit or vegetable juice.
12    Notwithstanding any other provisions of this Act,
13beginning September 1, 2009, "soft drinks" means non-alcoholic
14beverages that contain natural or artificial sweeteners. "Soft
15drinks" do not include beverages that contain milk or milk
16products, soy, rice or similar milk substitutes, or greater
17than 50% of vegetable or fruit juice by volume.
18    Until August 1, 2009, and notwithstanding any other
19provisions of this Act, "food for human consumption that is to
20be consumed off the premises where it is sold" includes all
21food sold through a vending machine, except soft drinks and
22food products that are dispensed hot from a vending machine,
23regardless of the location of the vending machine. Beginning
24August 1, 2009, and notwithstanding any other provisions of
25this Act, "food for human consumption that is to be consumed
26off the premises where it is sold" includes all food sold

 

 

SB0157 Enrolled- 227 -LRB102 10128 HLH 16591 b

1through a vending machine, except soft drinks, candy, and food
2products that are dispensed hot from a vending machine,
3regardless of the location of the vending machine.
4    Notwithstanding any other provisions of this Act,
5beginning September 1, 2009, "food for human consumption that
6is to be consumed off the premises where it is sold" does not
7include candy. For purposes of this Section, "candy" means a
8preparation of sugar, honey, or other natural or artificial
9sweeteners in combination with chocolate, fruits, nuts or
10other ingredients or flavorings in the form of bars, drops, or
11pieces. "Candy" does not include any preparation that contains
12flour or requires refrigeration.
13    Notwithstanding any other provisions of this Act,
14beginning September 1, 2009, "nonprescription medicines and
15drugs" does not include grooming and hygiene products. For
16purposes of this Section, "grooming and hygiene products"
17includes, but is not limited to, soaps and cleaning solutions,
18shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
19lotions and screens, unless those products are available by
20prescription only, regardless of whether the products meet the
21definition of "over-the-counter-drugs". For the purposes of
22this paragraph, "over-the-counter-drug" means a drug for human
23use that contains a label that identifies the product as a drug
24as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
25label includes:
26        (A) A "Drug Facts" panel; or

 

 

SB0157 Enrolled- 228 -LRB102 10128 HLH 16591 b

1        (B) A statement of the "active ingredient(s)" with a
2    list of those ingredients contained in the compound,
3    substance or preparation.
4    Beginning on January 1, 2014 (the effective date of Public
5Act 98-122), "prescription and nonprescription medicines and
6drugs" includes medical cannabis purchased from a registered
7dispensing organization under the Compassionate Use of Medical
8Cannabis Program Act.
9    As used in this Section, "adult use cannabis" means
10cannabis subject to tax under the Cannabis Cultivation
11Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
12and does not include cannabis subject to tax under the
13Compassionate Use of Medical Cannabis Program Act.
14    If the property that is acquired from a serviceman is
15acquired outside Illinois and used outside Illinois before
16being brought to Illinois for use here and is taxable under
17this Act, the "selling price" on which the tax is computed
18shall be reduced by an amount that represents a reasonable
19allowance for depreciation for the period of prior
20out-of-state use.
21(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
22102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
23    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
24    Sec. 9. Each serviceman required or authorized to collect
25the tax herein imposed shall pay to the Department the amount

 

 

SB0157 Enrolled- 229 -LRB102 10128 HLH 16591 b

1of such tax (except as otherwise provided) at the time when he
2is required to file his return for the period during which such
3tax was collected, less a discount of 2.1% prior to January 1,
41990 and 1.75% on and after January 1, 1990, or $5 per calendar
5year, whichever is greater, which is allowed to reimburse the
6serviceman for expenses incurred in collecting the tax,
7keeping records, preparing and filing returns, remitting the
8tax and supplying data to the Department on request. When
9determining the discount allowed under this Section,
10servicemen shall include the amount of tax that would have
11been due at the 1% rate but for the 0% rate imposed under this
12amendatory Act of the 102nd General Assembly. The discount
13under this Section is not allowed for the 1.25% portion of
14taxes paid on aviation fuel that is subject to the revenue use
15requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
16discount allowed under this Section is allowed only for
17returns that are filed in the manner required by this Act. The
18Department may disallow the discount for servicemen whose
19certificate of registration is revoked at the time the return
20is filed, but only if the Department's decision to revoke the
21certificate of registration has become final. A serviceman
22need not remit that part of any tax collected by him to the
23extent that he is required to pay and does pay the tax imposed
24by the Service Occupation Tax Act with respect to his sale of
25service involving the incidental transfer by him of the same
26property.

 

 

SB0157 Enrolled- 230 -LRB102 10128 HLH 16591 b

1    Except as provided hereinafter in this Section, on or
2before the twentieth day of each calendar month, such
3serviceman shall file a return for the preceding calendar
4month in accordance with reasonable Rules and Regulations to
5be promulgated by the Department. Such return shall be filed
6on a form prescribed by the Department and shall contain such
7information as the Department may reasonably require. The
8return shall include the gross receipts which were received
9during the preceding calendar month or quarter on the
10following items upon which tax would have been due but for the
110% rate imposed under this amendatory Act of the 102nd General
12Assembly: (i) food for human consumption that is to be
13consumed off the premises where it is sold (other than
14alcoholic beverages, food consisting of or infused with adult
15use cannabis, soft drinks, and food that has been prepared for
16immediate consumption); and (ii) food prepared for immediate
17consumption and transferred incident to a sale of service
18subject to this Act or the Service Occupation Tax Act by an
19entity licensed under the Hospital Licensing Act, the Nursing
20Home Care Act, the Assisted Living and Shared Housing Act, the
21ID/DD Community Care Act, the MC/DD Act, the Specialized
22Mental Health Rehabilitation Act of 2013, or the Child Care
23Act of 1969, or an entity that holds a permit issued pursuant
24to the Life Care Facilities Act. The return shall also include
25the amount of tax that would have been due on the items listed
26in the previous sentence but for the 0% rate imposed under this

 

 

SB0157 Enrolled- 231 -LRB102 10128 HLH 16591 b

1amendatory Act of the 102nd General Assembly.
2    On and after January 1, 2018, with respect to servicemen
3whose annual gross receipts average $20,000 or more, all
4returns required to be filed pursuant to this Act shall be
5filed electronically. Servicemen who demonstrate that they do
6not have access to the Internet or demonstrate hardship in
7filing electronically may petition the Department to waive the
8electronic filing requirement.
9    The Department may require returns to be filed on a
10quarterly basis. If so required, a return for each calendar
11quarter shall be filed on or before the twentieth day of the
12calendar month following the end of such calendar quarter. The
13taxpayer shall also file a return with the Department for each
14of the first two months of each calendar quarter, on or before
15the twentieth day of the following calendar month, stating:
16        1. The name of the seller;
17        2. The address of the principal place of business from
18    which he engages in business as a serviceman in this
19    State;
20        3. The total amount of taxable receipts received by
21    him during the preceding calendar month, including
22    receipts from charge and time sales, but less all
23    deductions allowed by law;
24        4. The amount of credit provided in Section 2d of this
25    Act;
26        5. The amount of tax due;

 

 

SB0157 Enrolled- 232 -LRB102 10128 HLH 16591 b

1        5-5. The signature of the taxpayer; and
2        6. Such other reasonable information as the Department
3    may require.
4    Each serviceman required or authorized to collect the tax
5imposed by this Act on aviation fuel transferred as an
6incident of a sale of service in this State during the
7preceding calendar month shall, instead of reporting and
8paying tax on aviation fuel as otherwise required by this
9Section, report and pay such tax on a separate aviation fuel
10tax return. The requirements related to the return shall be as
11otherwise provided in this Section. Notwithstanding any other
12provisions of this Act to the contrary, servicemen collecting
13tax on aviation fuel shall file all aviation fuel tax returns
14and shall make all aviation fuel tax payments by electronic
15means in the manner and form required by the Department. For
16purposes of this Section, "aviation fuel" means jet fuel and
17aviation gasoline.
18    If a taxpayer fails to sign a return within 30 days after
19the proper notice and demand for signature by the Department,
20the return shall be considered valid and any amount shown to be
21due on the return shall be deemed assessed.
22    Notwithstanding any other provision of this Act to the
23contrary, servicemen subject to tax on cannabis shall file all
24cannabis tax returns and shall make all cannabis tax payments
25by electronic means in the manner and form required by the
26Department.

 

 

SB0157 Enrolled- 233 -LRB102 10128 HLH 16591 b

1    Beginning October 1, 1993, a taxpayer who has an average
2monthly tax liability of $150,000 or more shall make all
3payments required by rules of the Department by electronic
4funds transfer. Beginning October 1, 1994, a taxpayer who has
5an average monthly tax liability of $100,000 or more shall
6make all payments required by rules of the Department by
7electronic funds transfer. Beginning October 1, 1995, a
8taxpayer who has an average monthly tax liability of $50,000
9or more shall make all payments required by rules of the
10Department by electronic funds transfer. Beginning October 1,
112000, a taxpayer who has an annual tax liability of $200,000 or
12more shall make all payments required by rules of the
13Department by electronic funds transfer. The term "annual tax
14liability" shall be the sum of the taxpayer's liabilities
15under this Act, and under all other State and local occupation
16and use tax laws administered by the Department, for the
17immediately preceding calendar year. The term "average monthly
18tax liability" means the sum of the taxpayer's liabilities
19under this Act, and under all other State and local occupation
20and use tax laws administered by the Department, for the
21immediately preceding calendar year divided by 12. Beginning
22on October 1, 2002, a taxpayer who has a tax liability in the
23amount set forth in subsection (b) of Section 2505-210 of the
24Department of Revenue Law shall make all payments required by
25rules of the Department by electronic funds transfer.
26    Before August 1 of each year beginning in 1993, the

 

 

SB0157 Enrolled- 234 -LRB102 10128 HLH 16591 b

1Department shall notify all taxpayers required to make
2payments by electronic funds transfer. All taxpayers required
3to make payments by electronic funds transfer shall make those
4payments for a minimum of one year beginning on October 1.
5    Any taxpayer not required to make payments by electronic
6funds transfer may make payments by electronic funds transfer
7with the permission of the Department.
8    All taxpayers required to make payment by electronic funds
9transfer and any taxpayers authorized to voluntarily make
10payments by electronic funds transfer shall make those
11payments in the manner authorized by the Department.
12    The Department shall adopt such rules as are necessary to
13effectuate a program of electronic funds transfer and the
14requirements of this Section.
15    If the serviceman is otherwise required to file a monthly
16return and if the serviceman's average monthly tax liability
17to the Department does not exceed $200, the Department may
18authorize his returns to be filed on a quarter annual basis,
19with the return for January, February and March of a given year
20being due by April 20 of such year; with the return for April,
21May and June of a given year being due by July 20 of such year;
22with the return for July, August and September of a given year
23being due by October 20 of such year, and with the return for
24October, November and December of a given year being due by
25January 20 of the following year.
26    If the serviceman is otherwise required to file a monthly

 

 

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1or quarterly return and if the serviceman's average monthly
2tax liability to the Department does not exceed $50, the
3Department may authorize his returns to be filed on an annual
4basis, with the return for a given year being due by January 20
5of the following year.
6    Such quarter annual and annual returns, as to form and
7substance, shall be subject to the same requirements as
8monthly returns.
9    Notwithstanding any other provision in this Act concerning
10the time within which a serviceman may file his return, in the
11case of any serviceman who ceases to engage in a kind of
12business which makes him responsible for filing returns under
13this Act, such serviceman shall file a final return under this
14Act with the Department not more than 1 month after
15discontinuing such business.
16    Where a serviceman collects the tax with respect to the
17selling price of property which he sells and the purchaser
18thereafter returns such property and the serviceman refunds
19the selling price thereof to the purchaser, such serviceman
20shall also refund, to the purchaser, the tax so collected from
21the purchaser. When filing his return for the period in which
22he refunds such tax to the purchaser, the serviceman may
23deduct the amount of the tax so refunded by him to the
24purchaser from any other Service Use Tax, Service Occupation
25Tax, retailers' occupation tax or use tax which such
26serviceman may be required to pay or remit to the Department,

 

 

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1as shown by such return, provided that the amount of the tax to
2be deducted shall previously have been remitted to the
3Department by such serviceman. If the serviceman shall not
4previously have remitted the amount of such tax to the
5Department, he shall be entitled to no deduction hereunder
6upon refunding such tax to the purchaser.
7    Any serviceman filing a return hereunder shall also
8include the total tax upon the selling price of tangible
9personal property purchased for use by him as an incident to a
10sale of service, and such serviceman shall remit the amount of
11such tax to the Department when filing such return.
12    If experience indicates such action to be practicable, the
13Department may prescribe and furnish a combination or joint
14return which will enable servicemen, who are required to file
15returns hereunder and also under the Service Occupation Tax
16Act, to furnish all the return information required by both
17Acts on the one form.
18    Where the serviceman has more than one business registered
19with the Department under separate registration hereunder,
20such serviceman shall not file each return that is due as a
21single return covering all such registered businesses, but
22shall file separate returns for each such registered business.
23    Beginning January 1, 1990, each month the Department shall
24pay into the State and Local Tax Reform Fund, a special fund in
25the State Treasury, the net revenue realized for the preceding
26month from the 1% tax imposed under this Act.

 

 

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1    Beginning January 1, 1990, each month the Department shall
2pay into the State and Local Sales Tax Reform Fund 20% of the
3net revenue realized for the preceding month from the 6.25%
4general rate on transfers of tangible personal property, other
5than (i) tangible personal property which is purchased outside
6Illinois at retail from a retailer and which is titled or
7registered by an agency of this State's government and (ii)
8aviation fuel sold on or after December 1, 2019. This
9exception for aviation fuel only applies for so long as the
10revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1147133 are binding on the State.
12    For aviation fuel sold on or after December 1, 2019, each
13month the Department shall pay into the State Aviation Program
14Fund 20% of the net revenue realized for the preceding month
15from the 6.25% general rate on the selling price of aviation
16fuel, less an amount estimated by the Department to be
17required for refunds of the 20% portion of the tax on aviation
18fuel under this Act, which amount shall be deposited into the
19Aviation Fuel Sales Tax Refund Fund. The Department shall only
20pay moneys into the State Aviation Program Fund and the
21Aviation Fuel Sales Tax Refund Fund under this Act for so long
22as the revenue use requirements of 49 U.S.C. 47107(b) and 49
23U.S.C. 47133 are binding on the State.
24    Beginning August 1, 2000, each month the Department shall
25pay into the State and Local Sales Tax Reform Fund 100% of the
26net revenue realized for the preceding month from the 1.25%

 

 

SB0157 Enrolled- 238 -LRB102 10128 HLH 16591 b

1rate on the selling price of motor fuel and gasohol.
2    Beginning October 1, 2009, each month the Department shall
3pay into the Capital Projects Fund an amount that is equal to
4an amount estimated by the Department to represent 80% of the
5net revenue realized for the preceding month from the sale of
6candy, grooming and hygiene products, and soft drinks that had
7been taxed at a rate of 1% prior to September 1, 2009 but that
8are now taxed at 6.25%.
9    Beginning July 1, 2013, each month the Department shall
10pay into the Underground Storage Tank Fund from the proceeds
11collected under this Act, the Use Tax Act, the Service
12Occupation Tax Act, and the Retailers' Occupation Tax Act an
13amount equal to the average monthly deficit in the Underground
14Storage Tank Fund during the prior year, as certified annually
15by the Illinois Environmental Protection Agency, but the total
16payment into the Underground Storage Tank Fund under this Act,
17the Use Tax Act, the Service Occupation Tax Act, and the
18Retailers' Occupation Tax Act shall not exceed $18,000,000 in
19any State fiscal year. As used in this paragraph, the "average
20monthly deficit" shall be equal to the difference between the
21average monthly claims for payment by the fund and the average
22monthly revenues deposited into the fund, excluding payments
23made pursuant to this paragraph.
24    Beginning July 1, 2015, of the remainder of the moneys
25received by the Department under the Use Tax Act, this Act, the
26Service Occupation Tax Act, and the Retailers' Occupation Tax

 

 

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1Act, each month the Department shall deposit $500,000 into the
2State Crime Laboratory Fund.
3    Of the remainder of the moneys received by the Department
4pursuant to this Act, (a) 1.75% thereof shall be paid into the
5Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
6and after July 1, 1989, 3.8% thereof shall be paid into the
7Build Illinois Fund; provided, however, that if in any fiscal
8year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
9may be, of the moneys received by the Department and required
10to be paid into the Build Illinois Fund pursuant to Section 3
11of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
12Act, Section 9 of the Service Use Tax Act, and Section 9 of the
13Service Occupation Tax Act, such Acts being hereinafter called
14the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
15may be, of moneys being hereinafter called the "Tax Act
16Amount", and (2) the amount transferred to the Build Illinois
17Fund from the State and Local Sales Tax Reform Fund shall be
18less than the Annual Specified Amount (as defined in Section 3
19of the Retailers' Occupation Tax Act), an amount equal to the
20difference shall be immediately paid into the Build Illinois
21Fund from other moneys received by the Department pursuant to
22the Tax Acts; and further provided, that if on the last
23business day of any month the sum of (1) the Tax Act Amount
24required to be deposited into the Build Illinois Bond Account
25in the Build Illinois Fund during such month and (2) the amount
26transferred during such month to the Build Illinois Fund from

 

 

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

 

 

SB0157 Enrolled- 241 -LRB102 10128 HLH 16591 b

1than the amount required to be transferred in such month from
2the Build Illinois Bond Account to the Build Illinois Bond
3Retirement and Interest Fund pursuant to Section 13 of the
4Build Illinois Bond Act, an amount equal to such deficiency
5shall be immediately paid from other moneys received by the
6Department pursuant to the Tax Acts to the Build Illinois
7Fund; provided, however, that any amounts paid to the Build
8Illinois Fund in any fiscal year pursuant to this sentence
9shall be deemed to constitute payments pursuant to clause (b)
10of the preceding sentence and shall reduce the amount
11otherwise payable for such fiscal year pursuant to clause (b)
12of the preceding sentence. The moneys received by the
13Department pursuant to this Act and required to be deposited
14into the Build Illinois Fund are subject to the pledge, claim
15and charge set forth in Section 12 of the Build Illinois Bond
16Act.
17    Subject to payment of amounts into the Build Illinois Fund
18as provided in the preceding paragraph or in any amendment
19thereto hereafter enacted, the following specified monthly
20installment of the amount requested in the certificate of the
21Chairman of the Metropolitan Pier and Exposition Authority
22provided under Section 8.25f of the State Finance Act, but not
23in excess of the sums designated as "Total Deposit", shall be
24deposited in the aggregate from collections under Section 9 of
25the Use Tax Act, Section 9 of the Service Use Tax Act, Section
269 of the Service Occupation Tax Act, and Section 3 of the

 

 

SB0157 Enrolled- 242 -LRB102 10128 HLH 16591 b

1Retailers' Occupation Tax Act into the McCormick Place
2Expansion Project Fund in the specified fiscal years.
 
3Fiscal YearTotal Deposit
41993         $0
51994 53,000,000
61995 58,000,000
71996 61,000,000
81997 64,000,000
91998 68,000,000
101999 71,000,000
112000 75,000,000
122001 80,000,000
132002 93,000,000
142003 99,000,000
152004103,000,000
162005108,000,000
172006113,000,000
182007119,000,000
192008126,000,000
202009132,000,000
212010139,000,000
222011146,000,000
232012153,000,000
242013161,000,000
252014170,000,000

 

 

SB0157 Enrolled- 243 -LRB102 10128 HLH 16591 b

12015179,000,000
22016189,000,000
32017199,000,000
42018210,000,000
52019221,000,000
62020233,000,000
72021300,000,000
82022300,000,000
92023300,000,000
102024 300,000,000
112025 300,000,000
122026 300,000,000
132027 375,000,000
142028 375,000,000
152029 375,000,000
162030 375,000,000
172031 375,000,000
182032 375,000,000
192033 375,000,000
202034375,000,000
212035375,000,000
222036450,000,000
23and
24each fiscal year
25thereafter that bonds
26are outstanding under

 

 

SB0157 Enrolled- 244 -LRB102 10128 HLH 16591 b

1Section 13.2 of the
2Metropolitan Pier and
3Exposition Authority Act,
4but not after fiscal year 2060.
5    Beginning July 20, 1993 and in each month of each fiscal
6year thereafter, one-eighth of the amount requested in the
7certificate of the Chairman of the Metropolitan Pier and
8Exposition Authority for that fiscal year, less the amount
9deposited into the McCormick Place Expansion Project Fund by
10the State Treasurer in the respective month under subsection
11(g) of Section 13 of the Metropolitan Pier and Exposition
12Authority Act, plus cumulative deficiencies in the deposits
13required under this Section for previous months and years,
14shall be deposited into the McCormick Place Expansion Project
15Fund, until the full amount requested for the fiscal year, but
16not in excess of the amount specified above as "Total
17Deposit", has been deposited.
18    Subject to payment of amounts into the Capital Projects
19Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
20and the McCormick Place Expansion Project Fund pursuant to the
21preceding paragraphs or in any amendments thereto hereafter
22enacted, for aviation fuel sold on or after December 1, 2019,
23the Department shall each month deposit into the Aviation Fuel
24Sales Tax Refund Fund an amount estimated by the Department to
25be required for refunds of the 80% portion of the tax on
26aviation fuel under this Act. The Department shall only

 

 

SB0157 Enrolled- 245 -LRB102 10128 HLH 16591 b

1deposit moneys into the Aviation Fuel Sales Tax Refund Fund
2under this paragraph for so long as the revenue use
3requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
4binding on the State.
5    Subject to payment of amounts into the Build Illinois Fund
6and the McCormick Place Expansion Project Fund pursuant to the
7preceding paragraphs or in any amendments thereto hereafter
8enacted, beginning July 1, 1993 and ending on September 30,
92013, the Department shall each month pay into the Illinois
10Tax Increment Fund 0.27% of 80% of the net revenue realized for
11the preceding month from the 6.25% general rate on the selling
12price of tangible personal property.
13    Subject to payment of amounts into the Build Illinois Fund
14and the McCormick Place Expansion Project Fund pursuant to the
15preceding paragraphs or in any amendments thereto hereafter
16enacted, beginning with the receipt of the first report of
17taxes paid by an eligible business and continuing for a
1825-year period, the Department shall each month pay into the
19Energy Infrastructure Fund 80% of the net revenue realized
20from the 6.25% general rate on the selling price of
21Illinois-mined coal that was sold to an eligible business. For
22purposes of this paragraph, the term "eligible business" means
23a new electric generating facility certified pursuant to
24Section 605-332 of the Department of Commerce and Economic
25Opportunity Law of the Civil Administrative Code of Illinois.
26    Subject to payment of amounts into the Build Illinois

 

 

SB0157 Enrolled- 246 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 247 -LRB102 10128 HLH 16591 b

1    Subject to successful execution and delivery of a
2public-private agreement between the public agency and private
3entity and completion of the civic build, beginning on July 1,
42023, of the remainder of the moneys received by the
5Department under the Use Tax Act, the Service Use Tax Act, the
6Service Occupation Tax Act, and this Act, the Department shall
7deposit the following specified deposits in the aggregate from
8collections under the Use Tax Act, the Service Use Tax Act, the
9Service Occupation Tax Act, and the Retailers' Occupation Tax
10Act, as required under Section 8.25g of the State Finance Act
11for distribution consistent with the Public-Private
12Partnership for Civic and Transit Infrastructure Project Act.
13The moneys received by the Department pursuant to this Act and
14required to be deposited into the Civic and Transit
15Infrastructure Fund are subject to the pledge, claim, and
16charge set forth in Section 25-55 of the Public-Private
17Partnership for Civic and Transit Infrastructure Project Act.
18As used in this paragraph, "civic build", "private entity",
19"public-private agreement", and "public agency" have the
20meanings provided in Section 25-10 of the Public-Private
21Partnership for Civic and Transit Infrastructure Project Act.
22        Fiscal Year............................Total Deposit
23        2024....................................$200,000,000
24        2025....................................$206,000,000
25        2026....................................$212,200,000
26        2027....................................$218,500,000

 

 

SB0157 Enrolled- 248 -LRB102 10128 HLH 16591 b

1        2028....................................$225,100,000
2        2029....................................$288,700,000
3        2030....................................$298,900,000
4        2031....................................$309,300,000
5        2032....................................$320,100,000
6        2033....................................$331,200,000
7        2034....................................$341,200,000
8        2035....................................$351,400,000
9        2036....................................$361,900,000
10        2037....................................$372,800,000
11        2038....................................$384,000,000
12        2039....................................$395,500,000
13        2040....................................$407,400,000
14        2041....................................$419,600,000
15        2042....................................$432,200,000
16        2043....................................$445,100,000
17    Beginning July 1, 2021 and until July 1, 2022, subject to
18the payment of amounts into the State and Local Sales Tax
19Reform Fund, the Build Illinois Fund, the McCormick Place
20Expansion Project Fund, the Illinois Tax Increment Fund, the
21Energy Infrastructure Fund, and the Tax Compliance and
22Administration Fund as provided in this Section, the
23Department shall pay each month into the Road Fund the amount
24estimated to represent 16% of the net revenue realized from
25the taxes imposed on motor fuel and gasohol. Beginning July 1,
262022 and until July 1, 2023, subject to the payment of amounts

 

 

SB0157 Enrolled- 249 -LRB102 10128 HLH 16591 b

1into the State and Local Sales Tax Reform Fund, the Build
2Illinois Fund, the McCormick Place Expansion Project Fund, the
3Illinois Tax Increment Fund, the Energy Infrastructure Fund,
4and the Tax Compliance and Administration Fund as provided in
5this Section, the Department shall pay each month into the
6Road Fund the amount estimated to represent 32% of the net
7revenue realized from the taxes imposed on motor fuel and
8gasohol. Beginning July 1, 2023 and until July 1, 2024,
9subject to the payment of amounts into the State and Local
10Sales Tax Reform Fund, the Build Illinois Fund, the McCormick
11Place Expansion Project Fund, the Illinois Tax Increment Fund,
12the Energy Infrastructure Fund, and the Tax Compliance and
13Administration Fund as provided in this Section, the
14Department shall pay each month into the Road Fund the amount
15estimated to represent 48% of the net revenue realized from
16the taxes imposed on motor fuel and gasohol. Beginning July 1,
172024 and until July 1, 2025, subject to the payment of amounts
18into the State and Local Sales Tax Reform Fund, the Build
19Illinois Fund, the McCormick Place Expansion Project Fund, the
20Illinois Tax Increment Fund, the Energy Infrastructure Fund,
21and the Tax Compliance and Administration Fund as provided in
22this Section, the Department shall pay each month into the
23Road Fund the amount estimated to represent 64% of the net
24revenue realized from the taxes imposed on motor fuel and
25gasohol. Beginning on July 1, 2025, subject to the payment of
26amounts into the State and Local Sales Tax Reform Fund, the

 

 

SB0157 Enrolled- 250 -LRB102 10128 HLH 16591 b

1Build Illinois Fund, the McCormick Place Expansion Project
2Fund, the Illinois Tax Increment Fund, the Energy
3Infrastructure Fund, and the Tax Compliance and Administration
4Fund as provided in this Section, the Department shall pay
5each month into the Road Fund the amount estimated to
6represent 80% of the net revenue realized from the taxes
7imposed on motor fuel and gasohol. As used in this paragraph
8"motor fuel" has the meaning given to that term in Section 1.1
9of the Motor Fuel Tax Law Act, and "gasohol" has the meaning
10given to that term in Section 3-40 of the Use Tax Act.
11    Of the remainder of the moneys received by the Department
12pursuant to this Act, 75% thereof shall be paid into the
13General Revenue Fund of the State Treasury and 25% shall be
14reserved in a special account and used only for the transfer to
15the Common School Fund as part of the monthly transfer from the
16General Revenue Fund in accordance with Section 8a of the
17State Finance Act.
18    As soon as possible after the first day of each month, upon
19certification of the Department of Revenue, the Comptroller
20shall order transferred and the Treasurer shall transfer from
21the General Revenue Fund to the Motor Fuel Tax Fund an amount
22equal to 1.7% of 80% of the net revenue realized under this Act
23for the second preceding month. Beginning April 1, 2000, this
24transfer is no longer required and shall not be made.
25    Net revenue realized for a month shall be the revenue
26collected by the State pursuant to this Act, less the amount

 

 

SB0157 Enrolled- 251 -LRB102 10128 HLH 16591 b

1paid out during that month as refunds to taxpayers for
2overpayment of liability.
3(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
4100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
515, Section 15-15, eff. 6-5-19; 101-10, Article 25, Section
625-110, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
76-28-19; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
 
8    Section 60-25. The Service Occupation Tax Act is amended
9by changing Sections 3-10 and 9 as follows:
 
10    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
11    Sec. 3-10. Rate of tax. Unless otherwise provided in this
12Section, the tax imposed by this Act is at the rate of 6.25% of
13the "selling price", as defined in Section 2 of the Service Use
14Tax Act, of the tangible personal property. For the purpose of
15computing this tax, in no event shall the "selling price" be
16less than the cost price to the serviceman of the tangible
17personal property transferred. The selling price of each item
18of tangible personal property transferred as an incident of a
19sale of service may be shown as a distinct and separate item on
20the serviceman's billing to the service customer. If the
21selling price is not so shown, the selling price of the
22tangible personal property is deemed to be 50% of the
23serviceman's entire billing to the service customer. When,
24however, a serviceman contracts to design, develop, and

 

 

SB0157 Enrolled- 252 -LRB102 10128 HLH 16591 b

1produce special order machinery or equipment, the tax imposed
2by this Act shall be based on the serviceman's cost price of
3the tangible personal property transferred incident to the
4completion of the contract.
5    Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9    With respect to gasohol, as defined in the Use Tax Act, the
10tax imposed by this Act shall apply to (i) 70% of the cost
11price of property transferred as an incident to the sale of
12service on or after January 1, 1990, and before July 1, 2003,
13(ii) 80% of the selling price of property transferred as an
14incident to the sale of service on or after July 1, 2003 and on
15or before July 1, 2017, and (iii) 100% of the cost price
16thereafter. If, at any time, however, the tax under this Act on
17sales of gasohol, as defined in the Use Tax Act, is imposed at
18the rate of 1.25%, then the tax imposed by this Act applies to
19100% of the proceeds of sales of gasohol made during that time.
20    With respect to majority blended ethanol fuel, as defined
21in the Use Tax Act, the tax imposed by this Act does not apply
22to the selling price of property transferred as an incident to
23the sale of service on or after July 1, 2003 and on or before
24December 31, 2023 but applies to 100% of the selling price
25thereafter.
26    With respect to biodiesel blends, as defined in the Use

 

 

SB0157 Enrolled- 253 -LRB102 10128 HLH 16591 b

1Tax Act, with no less than 1% and no more than 10% biodiesel,
2the tax imposed by this Act applies to (i) 80% of the selling
3price of property transferred as an incident to the sale of
4service on or after July 1, 2003 and on or before December 31,
52018 and (ii) 100% of the proceeds of the selling price
6thereafter. If, at any time, however, the tax under this Act on
7sales of biodiesel blends, as defined in the Use Tax Act, with
8no less than 1% and no more than 10% biodiesel is imposed at
9the rate of 1.25%, then the tax imposed by this Act applies to
10100% of the proceeds of sales of biodiesel blends with no less
11than 1% and no more than 10% biodiesel made during that time.
12    With respect to 100% biodiesel, as defined in the Use Tax
13Act, and biodiesel blends, as defined in the Use Tax Act, with
14more than 10% but no more than 99% biodiesel material, the tax
15imposed by this Act does not apply to the proceeds of the
16selling price of property transferred as an incident to the
17sale of service on or after July 1, 2003 and on or before
18December 31, 2023 but applies to 100% of the selling price
19thereafter.
20    At the election of any registered serviceman made for each
21fiscal year, sales of service in which the aggregate annual
22cost price of tangible personal property transferred as an
23incident to the sales of service is less than 35%, or 75% in
24the case of servicemen transferring prescription drugs or
25servicemen engaged in graphic arts production, of the
26aggregate annual total gross receipts from all sales of

 

 

SB0157 Enrolled- 254 -LRB102 10128 HLH 16591 b

1service, the tax imposed by this Act shall be based on the
2serviceman's cost price of the tangible personal property
3transferred incident to the sale of those services.
4    Until July 1, 2022 and beginning again on July 1, 2023, the
5The tax shall be imposed at the rate of 1% on food prepared for
6immediate consumption and transferred incident to a sale of
7service subject to this Act or the Service Use Occupation Tax
8Act by an entity licensed under the Hospital Licensing Act,
9the Nursing Home Care Act, the Assisted Living and Shared
10Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
11Specialized Mental Health Rehabilitation Act of 2013, or the
12Child Care Act of 1969, or an entity that holds a permit issued
13pursuant to the Life Care Facilities Act. Until July 1, 2022
14and beginning again on July 1, 2023, the The tax shall also be
15imposed at the rate of 1% on food for human consumption that is
16to be consumed off the premises where it is sold (other than
17alcoholic beverages, food consisting of or infused with adult
18use cannabis, soft drinks, and food that has been prepared for
19immediate consumption and is not otherwise included in this
20paragraph).
21    Beginning on July 1, 2022 and until July 1, 2023, the tax
22shall be imposed at the rate of 0% on food prepared for
23immediate consumption and transferred incident to a sale of
24service subject to this Act or the Service Use Tax Act by an
25entity licensed under the Hospital Licensing Act, the Nursing
26Home Care Act, the Assisted Living and Shared Housing Act, the

 

 

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1ID/DD Community Care Act, the MC/DD Act, the Specialized
2Mental Health Rehabilitation Act of 2013, or the Child Care
3Act of 1969, or an entity that holds a permit issued pursuant
4to the Life Care Facilities Act. Beginning July 1, 2022 and
5until July 1, 2023, the tax shall also be imposed at the rate
6of 0% on food for human consumption that is to be consumed off
7the premises where it is sold (other than alcoholic beverages,
8food consisting of or infused with adult use cannabis, soft
9drinks, and food that has been prepared for immediate
10consumption and is not otherwise included in this paragraph).
11    The tax shall also be imposed at the rate of 1% on and
12prescription and nonprescription medicines, drugs, medical
13appliances, products classified as Class III medical devices
14by the United States Food and Drug Administration that are
15used for cancer treatment pursuant to a prescription, as well
16as any accessories and components related to those devices,
17modifications to a motor vehicle for the purpose of rendering
18it usable by a person with a disability, and insulin, blood
19sugar testing materials, syringes, and needles used by human
20diabetics. For the purposes of this Section, until September
211, 2009: the term "soft drinks" means any complete, finished,
22ready-to-use, non-alcoholic drink, whether carbonated or not,
23including but not limited to soda water, cola, fruit juice,
24vegetable juice, carbonated water, and all other preparations
25commonly known as soft drinks of whatever kind or description
26that are contained in any closed or sealed can, carton, or

 

 

SB0157 Enrolled- 256 -LRB102 10128 HLH 16591 b

1container, regardless of size; but "soft drinks" does not
2include coffee, tea, non-carbonated water, infant formula,
3milk or milk products as defined in the Grade A Pasteurized
4Milk and Milk Products Act, or drinks containing 50% or more
5natural fruit or vegetable juice.
6    Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "soft drinks" means non-alcoholic
8beverages that contain natural or artificial sweeteners. "Soft
9drinks" do not include beverages that contain milk or milk
10products, soy, rice or similar milk substitutes, or greater
11than 50% of vegetable or fruit juice by volume.
12    Until August 1, 2009, and notwithstanding any other
13provisions of this Act, "food for human consumption that is to
14be consumed off the premises where it is sold" includes all
15food sold through a vending machine, except soft drinks and
16food products that are dispensed hot from a vending machine,
17regardless of the location of the vending machine. Beginning
18August 1, 2009, and notwithstanding any other provisions of
19this Act, "food for human consumption that is to be consumed
20off the premises where it is sold" includes all food sold
21through a vending machine, except soft drinks, candy, and food
22products that are dispensed hot from a vending machine,
23regardless of the location of the vending machine.
24    Notwithstanding any other provisions of this Act,
25beginning September 1, 2009, "food for human consumption that
26is to be consumed off the premises where it is sold" does not

 

 

SB0157 Enrolled- 257 -LRB102 10128 HLH 16591 b

1include candy. For purposes of this Section, "candy" means a
2preparation of sugar, honey, or other natural or artificial
3sweeteners in combination with chocolate, fruits, nuts or
4other ingredients or flavorings in the form of bars, drops, or
5pieces. "Candy" does not include any preparation that contains
6flour or requires refrigeration.
7    Notwithstanding any other provisions of this Act,
8beginning September 1, 2009, "nonprescription medicines and
9drugs" does not include grooming and hygiene products. For
10purposes of this Section, "grooming and hygiene products"
11includes, but is not limited to, soaps and cleaning solutions,
12shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
13lotions and screens, unless those products are available by
14prescription only, regardless of whether the products meet the
15definition of "over-the-counter-drugs". For the purposes of
16this paragraph, "over-the-counter-drug" means a drug for human
17use that contains a label that identifies the product as a drug
18as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
19label includes:
20        (A) A "Drug Facts" panel; or
21        (B) A statement of the "active ingredient(s)" with a
22    list of those ingredients contained in the compound,
23    substance or preparation.
24    Beginning on January 1, 2014 (the effective date of Public
25Act 98-122), "prescription and nonprescription medicines and
26drugs" includes medical cannabis purchased from a registered

 

 

SB0157 Enrolled- 258 -LRB102 10128 HLH 16591 b

1dispensing organization under the Compassionate Use of Medical
2Cannabis Program Act.
3    As used in this Section, "adult use cannabis" means
4cannabis subject to tax under the Cannabis Cultivation
5Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
6and does not include cannabis subject to tax under the
7Compassionate Use of Medical Cannabis Program Act.
8(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
9102-4, eff. 4-27-21; 102-16, eff. 6-17-21.)
 
10    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
11    Sec. 9. Each serviceman required or authorized to collect
12the tax herein imposed shall pay to the Department the amount
13of such tax at the time when he is required to file his return
14for the period during which such tax was collectible, less a
15discount of 2.1% prior to January 1, 1990, and 1.75% on and
16after January 1, 1990, or $5 per calendar year, whichever is
17greater, which is allowed to reimburse the serviceman for
18expenses incurred in collecting the tax, keeping records,
19preparing and filing returns, remitting the tax and supplying
20data to the Department on request. When determining the
21discount allowed under this Section, servicemen shall include
22the amount of tax that would have been due at the 1% rate but
23for the 0% rate imposed under this amendatory Act of the 102nd
24General Assembly. The discount under this Section is not
25allowed for the 1.25% portion of taxes paid on aviation fuel

 

 

SB0157 Enrolled- 259 -LRB102 10128 HLH 16591 b

1that is subject to the revenue use requirements of 49 U.S.C.
247107(b) and 49 U.S.C. 47133. The discount allowed under this
3Section is allowed only for returns that are filed in the
4manner required by this Act. The Department may disallow the
5discount for servicemen whose certificate of registration is
6revoked at the time the return is filed, but only if the
7Department's decision to revoke the certificate of
8registration has become final.
9    Where such tangible personal property is sold under a
10conditional sales contract, or under any other form of sale
11wherein the payment of the principal sum, or a part thereof, is
12extended beyond the close of the period for which the return is
13filed, the serviceman, in collecting the tax may collect, for
14each tax return period, only the tax applicable to the part of
15the selling price actually received during such tax return
16period.
17    Except as provided hereinafter in this Section, on or
18before the twentieth day of each calendar month, such
19serviceman shall file a return for the preceding calendar
20month in accordance with reasonable rules and regulations to
21be promulgated by the Department of Revenue. Such return shall
22be filed on a form prescribed by the Department and shall
23contain such information as the Department may reasonably
24require. The return shall include the gross receipts which
25were received during the preceding calendar month or quarter
26on the following items upon which tax would have been due but

 

 

SB0157 Enrolled- 260 -LRB102 10128 HLH 16591 b

1for the 0% rate imposed under this amendatory Act of the 102nd
2General Assembly: (i) food for human consumption that is to be
3consumed off the premises where it is sold (other than
4alcoholic beverages, food consisting of or infused with adult
5use cannabis, soft drinks, and food that has been prepared for
6immediate consumption); and (ii) food prepared for immediate
7consumption and transferred incident to a sale of service
8subject to this Act or the Service Use Tax Act by an entity
9licensed under the Hospital Licensing Act, the Nursing Home
10Care Act, the Assisted Living and Shared Housing Act, the
11ID/DD Community Care Act, the MC/DD Act, the Specialized
12Mental Health Rehabilitation Act of 2013, or the Child Care
13Act of 1969, or an entity that holds a permit issued pursuant
14to the Life Care Facilities Act. The return shall also include
15the amount of tax that would have been due on the items listed
16in the previous sentence but for the 0% rate imposed under this
17amendatory Act of the 102nd General Assembly.
18    On and after January 1, 2018, with respect to servicemen
19whose annual gross receipts average $20,000 or more, all
20returns required to be filed pursuant to this Act shall be
21filed electronically. Servicemen who demonstrate that they do
22not have access to the Internet or demonstrate hardship in
23filing electronically may petition the Department to waive the
24electronic filing requirement.
25    The Department may require returns to be filed on a
26quarterly basis. If so required, a return for each calendar

 

 

SB0157 Enrolled- 261 -LRB102 10128 HLH 16591 b

1quarter shall be filed on or before the twentieth day of the
2calendar month following the end of such calendar quarter. The
3taxpayer shall also file a return with the Department for each
4of the first two months of each calendar quarter, on or before
5the twentieth day of the following calendar month, stating:
6        1. The name of the seller;
7        2. The address of the principal place of business from
8    which he engages in business as a serviceman in this
9    State;
10        3. The total amount of taxable receipts received by
11    him during the preceding calendar month, including
12    receipts from charge and time sales, but less all
13    deductions allowed by law;
14        4. The amount of credit provided in Section 2d of this
15    Act;
16        5. The amount of tax due;
17        5-5. The signature of the taxpayer; and
18        6. Such other reasonable information as the Department
19    may require.
20    Each serviceman required or authorized to collect the tax
21herein imposed on aviation fuel acquired as an incident to the
22purchase of a service in this State during the preceding
23calendar month shall, instead of reporting and paying tax as
24otherwise required by this Section, report and pay such tax on
25a separate aviation fuel tax return. The requirements related
26to the return shall be as otherwise provided in this Section.

 

 

SB0157 Enrolled- 262 -LRB102 10128 HLH 16591 b

1Notwithstanding any other provisions of this Act to the
2contrary, servicemen transferring aviation fuel incident to
3sales of service shall file all aviation fuel tax returns and
4shall make all aviation fuel tax payments by electronic means
5in the manner and form required by the Department. For
6purposes of this Section, "aviation fuel" means jet fuel and
7aviation gasoline.
8    If a taxpayer fails to sign a return within 30 days after
9the proper notice and demand for signature by the Department,
10the return shall be considered valid and any amount shown to be
11due on the return shall be deemed assessed.
12    Notwithstanding any other provision of this Act to the
13contrary, servicemen subject to tax on cannabis shall file all
14cannabis tax returns and shall make all cannabis tax payments
15by electronic means in the manner and form required by the
16Department.
17    Prior to October 1, 2003, and on and after September 1,
182004 a serviceman may accept a Manufacturer's Purchase Credit
19certification from a purchaser in satisfaction of Service Use
20Tax as provided in Section 3-70 of the Service Use Tax Act if
21the purchaser provides the appropriate documentation as
22required by Section 3-70 of the Service Use Tax Act. A
23Manufacturer's Purchase Credit certification, accepted prior
24to October 1, 2003 or on or after September 1, 2004 by a
25serviceman as provided in Section 3-70 of the Service Use Tax
26Act, may be used by that serviceman to satisfy Service

 

 

SB0157 Enrolled- 263 -LRB102 10128 HLH 16591 b

1Occupation Tax liability in the amount claimed in the
2certification, not to exceed 6.25% of the receipts subject to
3tax from a qualifying purchase. A Manufacturer's Purchase
4Credit reported on any original or amended return filed under
5this Act after October 20, 2003 for reporting periods prior to
6September 1, 2004 shall be disallowed. Manufacturer's Purchase
7Credit reported on annual returns due on or after January 1,
82005 will be disallowed for periods prior to September 1,
92004. No Manufacturer's Purchase Credit may be used after
10September 30, 2003 through August 31, 2004 to satisfy any tax
11liability imposed under this Act, including any audit
12liability.
13    If the serviceman's average monthly tax liability to the
14Department does not exceed $200, the Department may authorize
15his returns to be filed on a quarter annual basis, with the
16return for January, February and March of a given year being
17due by April 20 of such year; with the return for April, May
18and June of a given year being due by July 20 of such year;
19with the return for July, August and September of a given year
20being due by October 20 of such year, and with the return for
21October, November and December of a given year being due by
22January 20 of the following year.
23    If the serviceman's average monthly tax liability to the
24Department does not exceed $50, the Department may authorize
25his returns to be filed on an annual basis, with the return for
26a given year being due by January 20 of the following year.

 

 

SB0157 Enrolled- 264 -LRB102 10128 HLH 16591 b

1    Such quarter annual and annual returns, as to form and
2substance, shall be subject to the same requirements as
3monthly returns.
4    Notwithstanding any other provision in this Act concerning
5the time within which a serviceman may file his return, in the
6case of any serviceman who ceases to engage in a kind of
7business which makes him responsible for filing returns under
8this Act, such serviceman shall file a final return under this
9Act with the Department not more than 1 month after
10discontinuing such business.
11    Beginning October 1, 1993, a taxpayer who has an average
12monthly tax liability of $150,000 or more shall make all
13payments required by rules of the Department by electronic
14funds transfer. Beginning October 1, 1994, a taxpayer who has
15an average monthly tax liability of $100,000 or more shall
16make all payments required by rules of the Department by
17electronic funds transfer. Beginning October 1, 1995, a
18taxpayer who has an average monthly tax liability of $50,000
19or more shall make all payments required by rules of the
20Department by electronic funds transfer. Beginning October 1,
212000, a taxpayer who has an annual tax liability of $200,000 or
22more shall make all payments required by rules of the
23Department by electronic funds transfer. The term "annual tax
24liability" shall be the sum of the taxpayer's liabilities
25under this Act, and under all other State and local occupation
26and use tax laws administered by the Department, for the

 

 

SB0157 Enrolled- 265 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 266 -LRB102 10128 HLH 16591 b

1the purchaser thereafter returns such tangible personal
2property and the serviceman refunds the selling price thereof
3to the purchaser, such serviceman shall also refund, to the
4purchaser, the tax so collected from the purchaser. When
5filing his return for the period in which he refunds such tax
6to the purchaser, the serviceman may deduct the amount of the
7tax so refunded by him to the purchaser from any other Service
8Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
9Use Tax which such serviceman may be required to pay or remit
10to the Department, as shown by such return, provided that the
11amount of the tax to be deducted shall previously have been
12remitted to the Department by such serviceman. If the
13serviceman shall not previously have remitted the amount of
14such tax to the Department, he shall be entitled to no
15deduction hereunder upon refunding such tax to the purchaser.
16    If experience indicates such action to be practicable, the
17Department may prescribe and furnish a combination or joint
18return which will enable servicemen, who are required to file
19returns hereunder and also under the Retailers' Occupation Tax
20Act, the Use Tax Act or the Service Use Tax Act, to furnish all
21the return information required by all said Acts on the one
22form.
23    Where the serviceman has more than one business registered
24with the Department under separate registrations hereunder,
25such serviceman shall file separate returns for each
26registered business.

 

 

SB0157 Enrolled- 267 -LRB102 10128 HLH 16591 b

1    Beginning January 1, 1990, each month the Department shall
2pay into the Local Government Tax Fund the revenue realized
3for the preceding month from the 1% tax imposed under this Act.
4    Beginning January 1, 1990, each month the Department shall
5pay into the County and Mass Transit District Fund 4% of the
6revenue realized for the preceding month from the 6.25%
7general rate on sales of tangible personal property other than
8aviation fuel sold on or after December 1, 2019. This
9exception for aviation fuel only applies for so long as the
10revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1147133 are binding on the State.
12    Beginning August 1, 2000, each month the Department shall
13pay into the County and Mass Transit District Fund 20% of the
14net revenue realized for the preceding month from the 1.25%
15rate on the selling price of motor fuel and gasohol.
16    Beginning January 1, 1990, each month the Department shall
17pay into the Local Government Tax Fund 16% of the revenue
18realized for the preceding month from the 6.25% general rate
19on transfers of tangible personal property other than aviation
20fuel sold on or after December 1, 2019. This exception for
21aviation fuel only applies for so long as the revenue use
22requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
23binding on the State.
24    For aviation fuel sold on or after December 1, 2019, each
25month the Department shall pay into the State Aviation Program
26Fund 20% of the net revenue realized for the preceding month

 

 

SB0157 Enrolled- 268 -LRB102 10128 HLH 16591 b

1from the 6.25% general rate on the selling price of aviation
2fuel, less an amount estimated by the Department to be
3required for refunds of the 20% portion of the tax on aviation
4fuel under this Act, which amount shall be deposited into the
5Aviation Fuel Sales Tax Refund Fund. The Department shall only
6pay moneys into the State Aviation Program Fund and the
7Aviation Fuel Sales Tax Refund Fund under this Act for so long
8as the revenue use requirements of 49 U.S.C. 47107(b) and 49
9U.S.C. 47133 are binding on the State.
10    Beginning August 1, 2000, each month the Department shall
11pay into the Local Government Tax Fund 80% of the net revenue
12realized for the preceding month from the 1.25% rate on the
13selling price of motor fuel and gasohol.
14    Beginning October 1, 2009, each month the Department shall
15pay into the Capital Projects Fund an amount that is equal to
16an amount estimated by the Department to represent 80% of the
17net revenue realized for the preceding month from the sale of
18candy, grooming and hygiene products, and soft drinks that had
19been taxed at a rate of 1% prior to September 1, 2009 but that
20are now taxed at 6.25%.
21    Beginning July 1, 2013, each month the Department shall
22pay into the Underground Storage Tank Fund from the proceeds
23collected under this Act, the Use Tax Act, the Service Use Tax
24Act, and the Retailers' Occupation Tax Act an amount equal to
25the average monthly deficit in the Underground Storage Tank
26Fund during the prior year, as certified annually by the

 

 

SB0157 Enrolled- 269 -LRB102 10128 HLH 16591 b

1Illinois Environmental Protection Agency, but the total
2payment into the Underground Storage Tank Fund under this Act,
3the Use Tax Act, the Service Use Tax Act, and the Retailers'
4Occupation Tax Act shall not exceed $18,000,000 in any State
5fiscal year. As used in this paragraph, the "average monthly
6deficit" shall be equal to the difference between the average
7monthly claims for payment by the fund and the average monthly
8revenues deposited into the fund, excluding payments made
9pursuant to this paragraph.
10    Beginning July 1, 2015, of the remainder of the moneys
11received by the Department under the Use Tax Act, the Service
12Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
13each month the Department shall deposit $500,000 into the
14State Crime Laboratory Fund.
15    Of the remainder of the moneys received by the Department
16pursuant to this Act, (a) 1.75% thereof shall be paid into the
17Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
18and after July 1, 1989, 3.8% thereof shall be paid into the
19Build Illinois Fund; provided, however, that if in any fiscal
20year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
21may be, of the moneys received by the Department and required
22to be paid into the Build Illinois Fund pursuant to Section 3
23of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
24Act, Section 9 of the Service Use Tax Act, and Section 9 of the
25Service Occupation Tax Act, such Acts being hereinafter called
26the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case

 

 

SB0157 Enrolled- 270 -LRB102 10128 HLH 16591 b

1may be, of moneys being hereinafter called the "Tax Act
2Amount", and (2) the amount transferred to the Build Illinois
3Fund from the State and Local Sales Tax Reform Fund shall be
4less than the Annual Specified Amount (as defined in Section 3
5of the Retailers' Occupation Tax Act), an amount equal to the
6difference shall be immediately paid into the Build Illinois
7Fund from other moneys received by the Department pursuant to
8the Tax Acts; and further provided, that if on the last
9business day of any month the sum of (1) the Tax Act Amount
10required to be deposited into the Build Illinois Account in
11the Build Illinois Fund during such month and (2) the amount
12transferred during such month to the Build Illinois Fund from
13the State and Local Sales Tax Reform Fund shall have been less
14than 1/12 of the Annual Specified Amount, an amount equal to
15the difference shall be immediately paid into the Build
16Illinois Fund from other moneys received by the Department
17pursuant to the Tax Acts; and, further provided, that in no
18event shall the payments required under the preceding proviso
19result in aggregate payments into the Build Illinois Fund
20pursuant to this clause (b) for any fiscal year in excess of
21the greater of (i) the Tax Act Amount or (ii) the Annual
22Specified Amount for such fiscal year; and, further provided,
23that the amounts payable into the Build Illinois Fund under
24this clause (b) shall be payable only until such time as the
25aggregate amount on deposit under each trust indenture
26securing Bonds issued and outstanding pursuant to the Build

 

 

SB0157 Enrolled- 271 -LRB102 10128 HLH 16591 b

1Illinois Bond Act is sufficient, taking into account any
2future investment income, to fully provide, in accordance with
3such indenture, for the defeasance of or the payment of the
4principal of, premium, if any, and interest on the Bonds
5secured by such indenture and on any Bonds expected to be
6issued thereafter and all fees and costs payable with respect
7thereto, all as certified by the Director of the Bureau of the
8Budget (now Governor's Office of Management and Budget). If on
9the last business day of any month in which Bonds are
10outstanding pursuant to the Build Illinois Bond Act, the
11aggregate of the moneys deposited in the Build Illinois Bond
12Account in the Build Illinois Fund in such month shall be less
13than the amount required to be transferred in such month from
14the Build Illinois Bond Account to the Build Illinois Bond
15Retirement and Interest Fund pursuant to Section 13 of the
16Build Illinois Bond Act, an amount equal to such deficiency
17shall be immediately paid from other moneys received by the
18Department pursuant to the Tax Acts to the Build Illinois
19Fund; provided, however, that any amounts paid to the Build
20Illinois Fund in any fiscal year pursuant to this sentence
21shall be deemed to constitute payments pursuant to clause (b)
22of the preceding sentence and shall reduce the amount
23otherwise payable for such fiscal year pursuant to clause (b)
24of the preceding sentence. The moneys received by the
25Department pursuant to this Act and required to be deposited
26into the Build Illinois Fund are subject to the pledge, claim

 

 

SB0157 Enrolled- 272 -LRB102 10128 HLH 16591 b

1and charge set forth in Section 12 of the Build Illinois Bond
2Act.
3    Subject to payment of amounts into the Build Illinois Fund
4as provided in the preceding paragraph or in any amendment
5thereto hereafter enacted, the following specified monthly
6installment of the amount requested in the certificate of the
7Chairman of the Metropolitan Pier and Exposition Authority
8provided under Section 8.25f of the State Finance Act, but not
9in excess of the sums designated as "Total Deposit", shall be
10deposited in the aggregate from collections under Section 9 of
11the Use Tax Act, Section 9 of the Service Use Tax Act, Section
129 of the Service Occupation Tax Act, and Section 3 of the
13Retailers' Occupation Tax Act into the McCormick Place
14Expansion Project Fund in the specified fiscal years.
 
15Fiscal YearTotal Deposit
161993         $0
171994 53,000,000
181995 58,000,000
191996 61,000,000
201997 64,000,000
211998 68,000,000
221999 71,000,000
232000 75,000,000
242001 80,000,000
252002 93,000,000

 

 

SB0157 Enrolled- 273 -LRB102 10128 HLH 16591 b

12003 99,000,000
22004103,000,000
32005108,000,000
42006113,000,000
52007119,000,000
62008126,000,000
72009132,000,000
82010139,000,000
92011146,000,000
102012153,000,000
112013161,000,000
122014170,000,000
132015179,000,000
142016189,000,000
152017199,000,000
162018210,000,000
172019221,000,000
182020233,000,000
192021300,000,000
202022300,000,000
212023300,000,000
222024 300,000,000
232025 300,000,000
242026 300,000,000
252027 375,000,000
262028 375,000,000

 

 

SB0157 Enrolled- 274 -LRB102 10128 HLH 16591 b

12029 375,000,000
22030 375,000,000
32031 375,000,000
42032 375,000,000
52033 375,000,000
62034375,000,000
72035375,000,000
82036450,000,000
9and
10each fiscal year
11thereafter that bonds
12are outstanding under
13Section 13.2 of the
14Metropolitan Pier and
15Exposition Authority Act,
16but not after fiscal year 2060.
17    Beginning July 20, 1993 and in each month of each fiscal
18year thereafter, one-eighth of the amount requested in the
19certificate of the Chairman of the Metropolitan Pier and
20Exposition Authority for that fiscal year, less the amount
21deposited into the McCormick Place Expansion Project Fund by
22the State Treasurer in the respective month under subsection
23(g) of Section 13 of the Metropolitan Pier and Exposition
24Authority Act, plus cumulative deficiencies in the deposits
25required under this Section for previous months and years,
26shall be deposited into the McCormick Place Expansion Project

 

 

SB0157 Enrolled- 275 -LRB102 10128 HLH 16591 b

1Fund, until the full amount requested for the fiscal year, but
2not in excess of the amount specified above as "Total
3Deposit", has been deposited.
4    Subject to payment of amounts into the Capital Projects
5Fund, the Build Illinois Fund, and the McCormick Place
6Expansion Project Fund pursuant to the preceding paragraphs or
7in any amendments thereto hereafter enacted, for aviation fuel
8sold on or after December 1, 2019, the Department shall each
9month deposit into the Aviation Fuel Sales Tax Refund Fund an
10amount estimated by the Department to be required for refunds
11of the 80% portion of the tax on aviation fuel under this Act.
12The Department shall only deposit moneys into the Aviation
13Fuel Sales Tax Refund Fund under this paragraph for so long as
14the revenue use requirements of 49 U.S.C. 47107(b) and 49
15U.S.C. 47133 are binding on the State.
16    Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning July 1, 1993 and ending on September 30,
202013, the Department shall each month pay into the Illinois
21Tax Increment Fund 0.27% of 80% of the net revenue realized for
22the preceding month from the 6.25% general rate on the selling
23price of tangible personal property.
24    Subject to payment of amounts into the Build Illinois Fund
25and the McCormick Place Expansion Project Fund pursuant to the
26preceding paragraphs or in any amendments thereto hereafter

 

 

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1enacted, beginning with the receipt of the first report of
2taxes paid by an eligible business and continuing for a
325-year period, the Department shall each month pay into the
4Energy Infrastructure Fund 80% of the net revenue realized
5from the 6.25% general rate on the selling price of
6Illinois-mined coal that was sold to an eligible business. For
7purposes of this paragraph, the term "eligible business" means
8a new electric generating facility certified pursuant to
9Section 605-332 of the Department of Commerce and Economic
10Opportunity Law of the Civil Administrative Code of Illinois.
11    Subject to payment of amounts into the Build Illinois
12Fund, the McCormick Place Expansion Project Fund, the Illinois
13Tax Increment Fund, and the Energy Infrastructure Fund
14pursuant to the preceding paragraphs or in any amendments to
15this Section hereafter enacted, beginning on the first day of
16the first calendar month to occur on or after August 26, 2014
17(the effective date of Public Act 98-1098), each month, from
18the collections made under Section 9 of the Use Tax Act,
19Section 9 of the Service Use Tax Act, Section 9 of the Service
20Occupation Tax Act, and Section 3 of the Retailers' Occupation
21Tax Act, the Department shall pay into the Tax Compliance and
22Administration Fund, to be used, subject to appropriation, to
23fund additional auditors and compliance personnel at the
24Department of Revenue, an amount equal to 1/12 of 5% of 80% of
25the cash receipts collected during the preceding fiscal year
26by the Audit Bureau of the Department under the Use Tax Act,

 

 

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1the Service Use Tax Act, the Service Occupation Tax Act, the
2Retailers' Occupation Tax Act, and associated local occupation
3and use taxes administered by the Department.
4    Subject to payments of amounts into the Build Illinois
5Fund, the McCormick Place Expansion Project Fund, the Illinois
6Tax Increment Fund, the Energy Infrastructure Fund, and the
7Tax Compliance and Administration Fund as provided in this
8Section, beginning on July 1, 2018 the Department shall pay
9each month into the Downstate Public Transportation Fund the
10moneys required to be so paid under Section 2-3 of the
11Downstate Public Transportation Act.
12    Subject to successful execution and delivery of a
13public-private agreement between the public agency and private
14entity and completion of the civic build, beginning on July 1,
152023, of the remainder of the moneys received by the
16Department under the Use Tax Act, the Service Use Tax Act, the
17Service Occupation Tax Act, and this Act, the Department shall
18deposit the following specified deposits in the aggregate from
19collections under the Use Tax Act, the Service Use Tax Act, the
20Service Occupation Tax Act, and the Retailers' Occupation Tax
21Act, as required under Section 8.25g of the State Finance Act
22for distribution consistent with the Public-Private
23Partnership for Civic and Transit Infrastructure Project Act.
24The moneys received by the Department pursuant to this Act and
25required to be deposited into the Civic and Transit
26Infrastructure Fund are subject to the pledge, claim and

 

 

SB0157 Enrolled- 278 -LRB102 10128 HLH 16591 b

1charge set forth in Section 25-55 of the Public-Private
2Partnership for Civic and Transit Infrastructure Project Act.
3As used in this paragraph, "civic build", "private entity",
4"public-private agreement", and "public agency" have the
5meanings provided in Section 25-10 of the Public-Private
6Partnership for Civic and Transit Infrastructure Project Act.
7        Fiscal Year............................Total Deposit
8        2024....................................$200,000,000
9        2025....................................$206,000,000
10        2026....................................$212,200,000
11        2027....................................$218,500,000
12        2028....................................$225,100,000
13        2029....................................$288,700,000
14        2030....................................$298,900,000
15        2031....................................$309,300,000
16        2032....................................$320,100,000
17        2033....................................$331,200,000
18        2034....................................$341,200,000
19        2035....................................$351,400,000
20        2036....................................$361,900,000
21        2037....................................$372,800,000
22        2038....................................$384,000,000
23        2039....................................$395,500,000
24        2040....................................$407,400,000
25        2041....................................$419,600,000
26        2042....................................$432,200,000

 

 

SB0157 Enrolled- 279 -LRB102 10128 HLH 16591 b

1        2043....................................$445,100,000
2    Beginning July 1, 2021 and until July 1, 2022, subject to
3the payment of amounts into the County and Mass Transit
4District Fund, the Local Government Tax Fund, the Build
5Illinois Fund, the McCormick Place Expansion Project Fund, the
6Illinois Tax Increment Fund, the Energy Infrastructure Fund,
7and the Tax Compliance and Administration Fund as provided in
8this Section, the Department shall pay each month into the
9Road Fund the amount estimated to represent 16% of the net
10revenue realized from the taxes imposed on motor fuel and
11gasohol. Beginning July 1, 2022 and until July 1, 2023,
12subject to the payment of amounts into the County and Mass
13Transit District Fund, the Local Government Tax Fund, the
14Build Illinois Fund, the McCormick Place Expansion Project
15Fund, the Illinois Tax Increment Fund, the Energy
16Infrastructure Fund, and the Tax Compliance and Administration
17Fund as provided in this Section, the Department shall pay
18each month into the Road Fund the amount estimated to
19represent 32% of the net revenue realized from the taxes
20imposed on motor fuel and gasohol. Beginning July 1, 2023 and
21until July 1, 2024, subject to the payment of amounts into the
22County and Mass Transit District Fund, the Local Government
23Tax Fund, the Build Illinois Fund, the McCormick Place
24Expansion Project Fund, the Illinois Tax Increment Fund, the
25Energy Infrastructure Fund, and the Tax Compliance and
26Administration Fund as provided in this Section, the

 

 

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1Department shall pay each month into the Road Fund the amount
2estimated to represent 48% of the net revenue realized from
3the taxes imposed on motor fuel and gasohol. Beginning July 1,
42024 and until July 1, 2025, subject to the payment of amounts
5into the County and Mass Transit District Fund, the Local
6Government Tax Fund, the Build Illinois Fund, the McCormick
7Place Expansion Project Fund, the Illinois Tax Increment Fund,
8the Energy Infrastructure Fund, and the Tax Compliance and
9Administration Fund as provided in this Section, the
10Department shall pay each month into the Road Fund the amount
11estimated to represent 64% of the net revenue realized from
12the taxes imposed on motor fuel and gasohol. Beginning on July
131, 2025, subject to the payment of amounts into the County and
14Mass Transit District Fund, the Local Government Tax Fund, the
15Build Illinois Fund, the McCormick Place Expansion Project
16Fund, the Illinois Tax Increment Fund, the Energy
17Infrastructure Fund, and the Tax Compliance and Administration
18Fund as provided in this Section, the Department shall pay
19each month into the Road Fund the amount estimated to
20represent 80% of the net revenue realized from the taxes
21imposed on motor fuel and gasohol. As used in this paragraph
22"motor fuel" has the meaning given to that term in Section 1.1
23of the Motor Fuel Tax Law Act, and "gasohol" has the meaning
24given to that term in Section 3-40 of the Use Tax Act.
25    Of the remainder of the moneys received by the Department
26pursuant to this Act, 75% shall be paid into the General

 

 

SB0157 Enrolled- 281 -LRB102 10128 HLH 16591 b

1Revenue Fund of the State Treasury and 25% shall be reserved in
2a special account and used only for the transfer to the Common
3School Fund as part of the monthly transfer from the General
4Revenue Fund in accordance with Section 8a of the State
5Finance Act.
6    The Department may, upon separate written notice to a
7taxpayer, require the taxpayer to prepare and file with the
8Department on a form prescribed by the Department within not
9less than 60 days after receipt of the notice an annual
10information return for the tax year specified in the notice.
11Such annual return to the Department shall include a statement
12of gross receipts as shown by the taxpayer's last Federal
13income tax return. If the total receipts of the business as
14reported in the Federal income tax return do not agree with the
15gross receipts reported to the Department of Revenue for the
16same period, the taxpayer shall attach to his annual return a
17schedule showing a reconciliation of the 2 amounts and the
18reasons for the difference. The taxpayer's annual return to
19the Department shall also disclose the cost of goods sold by
20the taxpayer during the year covered by such return, opening
21and closing inventories of such goods for such year, cost of
22goods used from stock or taken from stock and given away by the
23taxpayer during such year, pay roll information of the
24taxpayer's business during such year and any additional
25reasonable information which the Department deems would be
26helpful in determining the accuracy of the monthly, quarterly

 

 

SB0157 Enrolled- 282 -LRB102 10128 HLH 16591 b

1or annual returns filed by such taxpayer as hereinbefore
2provided for in this Section.
3    If the annual information return required by this Section
4is not filed when and as required, the taxpayer shall be liable
5as follows:
6        (i) Until January 1, 1994, the taxpayer shall be
7    liable for a penalty equal to 1/6 of 1% of the tax due from
8    such taxpayer under this Act during the period to be
9    covered by the annual return for each month or fraction of
10    a month until such return is filed as required, the
11    penalty to be assessed and collected in the same manner as
12    any other penalty provided for in this Act.
13        (ii) On and after January 1, 1994, the taxpayer shall
14    be liable for a penalty as described in Section 3-4 of the
15    Uniform Penalty and Interest Act.
16    The chief executive officer, proprietor, owner or highest
17ranking manager shall sign the annual return to certify the
18accuracy of the information contained therein. Any person who
19willfully signs the annual return containing false or
20inaccurate information shall be guilty of perjury and punished
21accordingly. The annual return form prescribed by the
22Department shall include a warning that the person signing the
23return may be liable for perjury.
24    The foregoing portion of this Section concerning the
25filing of an annual information return shall not apply to a
26serviceman who is not required to file an income tax return

 

 

SB0157 Enrolled- 283 -LRB102 10128 HLH 16591 b

1with the United States Government.
2    As soon as possible after the first day of each month, upon
3certification of the Department of Revenue, the Comptroller
4shall order transferred and the Treasurer shall transfer from
5the General Revenue Fund to the Motor Fuel Tax Fund an amount
6equal to 1.7% of 80% of the net revenue realized under this Act
7for the second preceding month. Beginning April 1, 2000, this
8transfer is no longer required and shall not be made.
9    Net revenue realized for a month shall be the revenue
10collected by the State pursuant to this Act, less the amount
11paid out during that month as refunds to taxpayers for
12overpayment of liability.
13    For greater simplicity of administration, it shall be
14permissible for manufacturers, importers and wholesalers whose
15products are sold by numerous servicemen in Illinois, and who
16wish to do so, to assume the responsibility for accounting and
17paying to the Department all tax accruing under this Act with
18respect to such sales, if the servicemen who are affected do
19not make written objection to the Department to this
20arrangement.
21(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
22100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
2315, Section 15-20, eff. 6-5-19; 101-10, Article 25, Section
2425-115, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
256-28-19; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
 

 

 

SB0157 Enrolled- 284 -LRB102 10128 HLH 16591 b

1    Section 60-30. The Retailers' Occupation Tax Act is
2amended by changing Sections 2-10 and 3 as follows:
 
3    (35 ILCS 120/2-10)
4    Sec. 2-10. Rate of tax. Unless otherwise provided in this
5Section, the tax imposed by this Act is at the rate of 6.25% of
6gross receipts from sales of tangible personal property made
7in the course of business.
8    Beginning on July 1, 2000 and through December 31, 2000,
9with respect to motor fuel, as defined in Section 1.1 of the
10Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
11the Use Tax Act, the tax is imposed at the rate of 1.25%.
12    Beginning on August 6, 2010 through August 15, 2010, with
13respect to sales tax holiday items as defined in Section 2-8 of
14this Act, the tax is imposed at the rate of 1.25%.
15    Within 14 days after the effective date of this amendatory
16Act of the 91st General Assembly, each retailer of motor fuel
17and gasohol shall cause the following notice to be posted in a
18prominently visible place on each retail dispensing device
19that is used to dispense motor fuel or gasohol in the State of
20Illinois: "As of July 1, 2000, the State of Illinois has
21eliminated the State's share of sales tax on motor fuel and
22gasohol through December 31, 2000. The price on this pump
23should reflect the elimination of the tax." The notice shall
24be printed in bold print on a sign that is no smaller than 4
25inches by 8 inches. The sign shall be clearly visible to

 

 

SB0157 Enrolled- 285 -LRB102 10128 HLH 16591 b

1customers. Any retailer who fails to post or maintain a
2required sign through December 31, 2000 is guilty of a petty
3offense for which the fine shall be $500 per day per each
4retail premises where a violation occurs.
5    With respect to gasohol, as defined in the Use Tax Act, the
6tax imposed by this Act applies to (i) 70% of the proceeds of
7sales made on or after January 1, 1990, and before July 1,
82003, (ii) 80% of the proceeds of sales made on or after July
91, 2003 and on or before July 1, 2017, and (iii) 100% of the
10proceeds of sales made thereafter. If, at any time, however,
11the tax under this Act on sales of gasohol, as defined in the
12Use Tax Act, is imposed at the rate of 1.25%, then the tax
13imposed by this Act applies to 100% of the proceeds of sales of
14gasohol made during that time.
15    With respect to majority blended ethanol fuel, as defined
16in the Use Tax Act, the tax imposed by this Act does not apply
17to the proceeds of sales made on or after July 1, 2003 and on
18or before December 31, 2023 but applies to 100% of the proceeds
19of sales made thereafter.
20    With respect to biodiesel blends, as defined in the Use
21Tax Act, with no less than 1% and no more than 10% biodiesel,
22the tax imposed by this Act applies to (i) 80% of the proceeds
23of sales made on or after July 1, 2003 and on or before
24December 31, 2018 and (ii) 100% of the proceeds of sales made
25thereafter. If, at any time, however, the tax under this Act on
26sales of biodiesel blends, as defined in the Use Tax Act, with

 

 

SB0157 Enrolled- 286 -LRB102 10128 HLH 16591 b

1no less than 1% and no more than 10% biodiesel is imposed at
2the rate of 1.25%, then the tax imposed by this Act applies to
3100% of the proceeds of sales of biodiesel blends with no less
4than 1% and no more than 10% biodiesel made during that time.
5    With respect to 100% biodiesel, as defined in the Use Tax
6Act, and biodiesel blends, as defined in the Use Tax Act, with
7more than 10% but no more than 99% biodiesel, the tax imposed
8by this Act does not apply to the proceeds of sales made on or
9after July 1, 2003 and on or before December 31, 2023 but
10applies to 100% of the proceeds of sales made thereafter.
11    Until July 1, 2022 and beginning again on July 1, 2023,
12with With respect to food for human consumption that is to be
13consumed off the premises where it is sold (other than
14alcoholic beverages, food consisting of or infused with adult
15use cannabis, soft drinks, and food that has been prepared for
16immediate consumption), the tax is imposed at the rate of 1%.
17Beginning July 1, 2022 and until July 1, 2023, with respect to
18food for human consumption that is to be consumed off the
19premises where it is sold (other than alcoholic beverages,
20food consisting of or infused with adult use cannabis, soft
21drinks, and food that has been prepared for immediate
22consumption), the tax is imposed at the rate of 0%.
23    With respect to and prescription and nonprescription
24medicines, drugs, medical appliances, products classified as
25Class III medical devices by the United States Food and Drug
26Administration that are used for cancer treatment pursuant to

 

 

SB0157 Enrolled- 287 -LRB102 10128 HLH 16591 b

1a prescription, as well as any accessories and components
2related to those devices, modifications to a motor vehicle for
3the purpose of rendering it usable by a person with a
4disability, and insulin, blood sugar testing materials,
5syringes, and needles used by human diabetics, the tax is
6imposed at the rate of 1%. For the purposes of this Section,
7until September 1, 2009: the term "soft drinks" means any
8complete, finished, ready-to-use, non-alcoholic drink, whether
9carbonated or not, including but not limited to soda water,
10cola, fruit juice, vegetable juice, carbonated water, and all
11other preparations commonly known as soft drinks of whatever
12kind or description that are contained in any closed or sealed
13bottle, can, carton, or container, regardless of size; but
14"soft drinks" does not include coffee, tea, non-carbonated
15water, infant formula, milk or milk products as defined in the
16Grade A Pasteurized Milk and Milk Products Act, or drinks
17containing 50% or more natural fruit or vegetable juice.
18    Notwithstanding any other provisions of this Act,
19beginning September 1, 2009, "soft drinks" means non-alcoholic
20beverages that contain natural or artificial sweeteners. "Soft
21drinks" do not include beverages that contain milk or milk
22products, soy, rice or similar milk substitutes, or greater
23than 50% of vegetable or fruit juice by volume.
24    Until August 1, 2009, and notwithstanding any other
25provisions of this Act, "food for human consumption that is to
26be consumed off the premises where it is sold" includes all

 

 

SB0157 Enrolled- 288 -LRB102 10128 HLH 16591 b

1food sold through a vending machine, except soft drinks and
2food products that are dispensed hot from a vending machine,
3regardless of the location of the vending machine. Beginning
4August 1, 2009, and notwithstanding any other provisions of
5this Act, "food for human consumption that is to be consumed
6off the premises where it is sold" includes all food sold
7through a vending machine, except soft drinks, candy, and food
8products that are dispensed hot from a vending machine,
9regardless of the location of the vending machine.
10    Notwithstanding any other provisions of this Act,
11beginning September 1, 2009, "food for human consumption that
12is to be consumed off the premises where it is sold" does not
13include candy. For purposes of this Section, "candy" means a
14preparation of sugar, honey, or other natural or artificial
15sweeteners in combination with chocolate, fruits, nuts or
16other ingredients or flavorings in the form of bars, drops, or
17pieces. "Candy" does not include any preparation that contains
18flour or requires refrigeration.
19    Notwithstanding any other provisions of this Act,
20beginning September 1, 2009, "nonprescription medicines and
21drugs" does not include grooming and hygiene products. For
22purposes of this Section, "grooming and hygiene products"
23includes, but is not limited to, soaps and cleaning solutions,
24shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
25lotions and screens, unless those products are available by
26prescription only, regardless of whether the products meet the

 

 

SB0157 Enrolled- 289 -LRB102 10128 HLH 16591 b

1definition of "over-the-counter-drugs". For the purposes of
2this paragraph, "over-the-counter-drug" means a drug for human
3use that contains a label that identifies the product as a drug
4as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
5label includes:
6        (A) A "Drug Facts" panel; or
7        (B) A statement of the "active ingredient(s)" with a
8    list of those ingredients contained in the compound,
9    substance or preparation.
10    Beginning on the effective date of this amendatory Act of
11the 98th General Assembly, "prescription and nonprescription
12medicines and drugs" includes medical cannabis purchased from
13a registered dispensing organization under the Compassionate
14Use of Medical Cannabis Program Act.
15    As used in this Section, "adult use cannabis" means
16cannabis subject to tax under the Cannabis Cultivation
17Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
18and does not include cannabis subject to tax under the
19Compassionate Use of Medical Cannabis Program Act.
20(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
21102-4, eff. 4-27-21.)
 
22    (35 ILCS 120/3)  (from Ch. 120, par. 442)
23    Sec. 3. Except as provided in this Section, on or before
24the twentieth day of each calendar month, every person engaged
25in the business of selling tangible personal property at

 

 

SB0157 Enrolled- 290 -LRB102 10128 HLH 16591 b

1retail in this State during the preceding calendar month shall
2file a return with the Department, stating:
3        1. The name of the seller;
4        2. His residence address and the address of his
5    principal place of business and the address of the
6    principal place of business (if that is a different
7    address) from which he engages in the business of selling
8    tangible personal property at retail in this State;
9        3. Total amount of receipts received by him during the
10    preceding calendar month or quarter, as the case may be,
11    from sales of tangible personal property, and from
12    services furnished, by him during such preceding calendar
13    month or quarter;
14        4. Total amount received by him during the preceding
15    calendar month or quarter on charge and time sales of
16    tangible personal property, and from services furnished,
17    by him prior to the month or quarter for which the return
18    is filed;
19        5. Deductions allowed by law;
20        6. Gross receipts which were received by him during
21    the preceding calendar month or quarter and upon the basis
22    of which the tax is imposed, including gross receipts on
23    food for human consumption that is to be consumed off the
24    premises where it is sold (other than alcoholic beverages,
25    food consisting of or infused with adult use cannabis,
26    soft drinks, and food that has been prepared for immediate

 

 

SB0157 Enrolled- 291 -LRB102 10128 HLH 16591 b

1    consumption) which were received during the preceding
2    calendar month or quarter and upon which tax would have
3    been due but for the 0% rate imposed under this amendatory
4    Act of the 102nd General Assembly;
5        7. The amount of credit provided in Section 2d of this
6    Act;
7        8. The amount of tax due, including the amount of tax
8    that would have been due on food for human consumption
9    that is to be consumed off the premises where it is sold
10    (other than alcoholic beverages, food consisting of or
11    infused with adult use cannabis, soft drinks, and food
12    that has been prepared for immediate consumption) but for
13    the 0% rate imposed under this amendatory Act of the 102nd
14    General Assembly;
15        9. The signature of the taxpayer; and
16        10. Such other reasonable information as the
17    Department may require.
18    On and after January 1, 2018, except for returns for motor
19vehicles, watercraft, aircraft, and trailers that are required
20to be registered with an agency of this State, with respect to
21retailers whose annual gross receipts average $20,000 or more,
22all returns required to be filed pursuant to this Act shall be
23filed electronically. Retailers who demonstrate that they do
24not have access to the Internet or demonstrate hardship in
25filing electronically may petition the Department to waive the
26electronic filing requirement.

 

 

SB0157 Enrolled- 292 -LRB102 10128 HLH 16591 b

1    If a taxpayer fails to sign a return within 30 days after
2the proper notice and demand for signature by the Department,
3the return shall be considered valid and any amount shown to be
4due on the return shall be deemed assessed.
5    Each return shall be accompanied by the statement of
6prepaid tax issued pursuant to Section 2e for which credit is
7claimed.
8    Prior to October 1, 2003, and on and after September 1,
92004 a retailer may accept a Manufacturer's Purchase Credit
10certification from a purchaser in satisfaction of Use Tax as
11provided in Section 3-85 of the Use Tax Act if the purchaser
12provides the appropriate documentation as required by Section
133-85 of the Use Tax Act. A Manufacturer's Purchase Credit
14certification, accepted by a retailer prior to October 1, 2003
15and on and after September 1, 2004 as provided in Section 3-85
16of the Use Tax Act, may be used by that retailer to satisfy
17Retailers' Occupation Tax liability in the amount claimed in
18the certification, not to exceed 6.25% of the receipts subject
19to tax from a qualifying purchase. A Manufacturer's Purchase
20Credit reported on any original or amended return filed under
21this Act after October 20, 2003 for reporting periods prior to
22September 1, 2004 shall be disallowed. Manufacturer's Purchase
23Purchaser Credit reported on annual returns due on or after
24January 1, 2005 will be disallowed for periods prior to
25September 1, 2004. No Manufacturer's Purchase Credit may be
26used after September 30, 2003 through August 31, 2004 to

 

 

SB0157 Enrolled- 293 -LRB102 10128 HLH 16591 b

1satisfy any tax liability imposed under this Act, including
2any audit liability.
3    The Department may require returns to be filed on a
4quarterly basis. If so required, a return for each calendar
5quarter shall be filed on or before the twentieth day of the
6calendar month following the end of such calendar quarter. The
7taxpayer shall also file a return with the Department for each
8of the first two months of each calendar quarter, on or before
9the twentieth day of the following calendar month, stating:
10        1. The name of the seller;
11        2. The address of the principal place of business from
12    which he engages in the business of selling tangible
13    personal property at retail in this State;
14        3. The total amount of taxable receipts received by
15    him during the preceding calendar month from sales of
16    tangible personal property by him during such preceding
17    calendar month, including receipts from charge and time
18    sales, but less all deductions allowed by law;
19        4. The amount of credit provided in Section 2d of this
20    Act;
21        5. The amount of tax due; and
22        6. Such other reasonable information as the Department
23    may require.
24    Every person engaged in the business of selling aviation
25fuel at retail in this State during the preceding calendar
26month shall, instead of reporting and paying tax as otherwise

 

 

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

 

 

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1the Department of Revenue, no later than the 10th day of the
2month for the preceding month during which transactions
3occurred, by electronic means, showing the total amount of
4gross receipts from the sale of alcoholic liquor sold or
5distributed during the preceding month to purchasers;
6identifying the purchaser to whom it was sold or distributed;
7the purchaser's tax registration number; and such other
8information reasonably required by the Department. A
9distributor, importing distributor, or manufacturer of
10alcoholic liquor must personally deliver, mail, or provide by
11electronic means to each retailer listed on the monthly
12statement a report containing a cumulative total of that
13distributor's, importing distributor's, or manufacturer's
14total sales of alcoholic liquor to that retailer no later than
15the 10th day of the month for the preceding month during which
16the transaction occurred. The distributor, importing
17distributor, or manufacturer shall notify the retailer as to
18the method by which the distributor, importing distributor, or
19manufacturer will provide the sales information. If the
20retailer is unable to receive the sales information by
21electronic means, the distributor, importing distributor, or
22manufacturer shall furnish the sales information by personal
23delivery or by mail. For purposes of this paragraph, the term
24"electronic means" includes, but is not limited to, the use of
25a secure Internet website, e-mail, or facsimile.
26    If a total amount of less than $1 is payable, refundable or

 

 

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1creditable, such amount shall be disregarded if it is less
2than 50 cents and shall be increased to $1 if it is 50 cents or
3more.
4    Notwithstanding any other provision of this Act to the
5contrary, retailers subject to tax on cannabis shall file all
6cannabis tax returns and shall make all cannabis tax payments
7by electronic means in the manner and form required by the
8Department.
9    Beginning October 1, 1993, a taxpayer who has an average
10monthly tax liability of $150,000 or more shall make all
11payments required by rules of the Department by electronic
12funds transfer. Beginning October 1, 1994, a taxpayer who has
13an average monthly tax liability of $100,000 or more shall
14make all payments required by rules of the Department by
15electronic funds transfer. Beginning October 1, 1995, a
16taxpayer who has an average monthly tax liability of $50,000
17or more shall make all payments required by rules of the
18Department by electronic funds transfer. Beginning October 1,
192000, a taxpayer who has an annual tax liability of $200,000 or
20more shall make all payments required by rules of the
21Department by electronic funds transfer. The term "annual tax
22liability" shall be the sum of the taxpayer's liabilities
23under this Act, and under all other State and local occupation
24and use tax laws administered by the Department, for the
25immediately preceding calendar year. The term "average monthly
26tax liability" shall be the sum of the taxpayer's liabilities

 

 

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1under this Act, and under all other State and local occupation
2and use tax laws administered by the Department, for the
3immediately preceding calendar year divided by 12. Beginning
4on October 1, 2002, a taxpayer who has a tax liability in the
5amount set forth in subsection (b) of Section 2505-210 of the
6Department of Revenue Law shall make all payments required by
7rules of the Department by electronic funds transfer.
8    Before August 1 of each year beginning in 1993, the
9Department shall notify all taxpayers required to make
10payments by electronic funds transfer. All taxpayers required
11to make payments by electronic funds transfer shall make those
12payments for a minimum of one year beginning on October 1.
13    Any taxpayer not required to make payments by electronic
14funds transfer may make payments by electronic funds transfer
15with the permission of the Department.
16    All taxpayers required to make payment by electronic funds
17transfer and any taxpayers authorized to voluntarily make
18payments by electronic funds transfer shall make those
19payments in the manner authorized by the Department.
20    The Department shall adopt such rules as are necessary to
21effectuate a program of electronic funds transfer and the
22requirements of this Section.
23    Any amount which is required to be shown or reported on any
24return or other document under this Act shall, if such amount
25is not a whole-dollar amount, be increased to the nearest
26whole-dollar amount in any case where the fractional part of a

 

 

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1dollar is 50 cents or more, and decreased to the nearest
2whole-dollar amount where the fractional part of a dollar is
3less than 50 cents.
4    If the retailer is otherwise required to file a monthly
5return and if the retailer's average monthly tax liability to
6the Department does not exceed $200, the Department may
7authorize his returns to be filed on a quarter annual basis,
8with the return for January, February and March of a given year
9being due by April 20 of such year; with the return for April,
10May and June of a given year being due by July 20 of such year;
11with the return for July, August and September of a given year
12being due by October 20 of such year, and with the return for
13October, November and December of a given year being due by
14January 20 of the following year.
15    If the retailer is otherwise required to file a monthly or
16quarterly return and if the retailer's average monthly tax
17liability with the Department does not exceed $50, the
18Department may authorize his returns to be filed on an annual
19basis, with the return for a given year being due by January 20
20of the following year.
21    Such quarter annual and annual returns, as to form and
22substance, shall be subject to the same requirements as
23monthly returns.
24    Notwithstanding any other provision in this Act concerning
25the time within which a retailer may file his return, in the
26case of any retailer who ceases to engage in a kind of business

 

 

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1which makes him responsible for filing returns under this Act,
2such retailer shall file a final return under this Act with the
3Department not more than one month after discontinuing such
4business.
5    Where the same person has more than one business
6registered with the Department under separate registrations
7under this Act, such person may not file each return that is
8due as a single return covering all such registered
9businesses, but shall file separate returns for each such
10registered business.
11    In addition, with respect to motor vehicles, watercraft,
12aircraft, and trailers that are required to be registered with
13an agency of this State, except as otherwise provided in this
14Section, every retailer selling this kind of tangible personal
15property shall file, with the Department, upon a form to be
16prescribed and supplied by the Department, a separate return
17for each such item of tangible personal property which the
18retailer sells, except that if, in the same transaction, (i) a
19retailer of aircraft, watercraft, motor vehicles or trailers
20transfers more than one aircraft, watercraft, motor vehicle or
21trailer to another aircraft, watercraft, motor vehicle
22retailer or trailer retailer for the purpose of resale or (ii)
23a retailer of aircraft, watercraft, motor vehicles, or
24trailers transfers more than one aircraft, watercraft, motor
25vehicle, or trailer to a purchaser for use as a qualifying
26rolling stock as provided in Section 2-5 of this Act, then that

 

 

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1seller may report the transfer of all aircraft, watercraft,
2motor vehicles or trailers involved in that transaction to the
3Department on the same uniform invoice-transaction reporting
4return form. For purposes of this Section, "watercraft" means
5a Class 2, Class 3, or Class 4 watercraft as defined in Section
63-2 of the Boat Registration and Safety Act, a personal
7watercraft, or any boat equipped with an inboard motor.
8    In addition, with respect to motor vehicles, watercraft,
9aircraft, and trailers that are required to be registered with
10an agency of this State, every person who is engaged in the
11business of leasing or renting such items and who, in
12connection with such business, sells any such item to a
13retailer for the purpose of resale is, notwithstanding any
14other provision of this Section to the contrary, authorized to
15meet the return-filing requirement of this Act by reporting
16the transfer of all the aircraft, watercraft, motor vehicles,
17or trailers transferred for resale during a month to the
18Department on the same uniform invoice-transaction reporting
19return form on or before the 20th of the month following the
20month in which the transfer takes place. Notwithstanding any
21other provision of this Act to the contrary, all returns filed
22under this paragraph must be filed by electronic means in the
23manner and form as required by the Department.
24    Any retailer who sells only motor vehicles, watercraft,
25aircraft, or trailers that are required to be registered with
26an agency of this State, so that all retailers' occupation tax

 

 

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1liability is required to be reported, and is reported, on such
2transaction reporting returns and who is not otherwise
3required to file monthly or quarterly returns, need not file
4monthly or quarterly returns. However, those retailers shall
5be required to file returns on an annual basis.
6    The transaction reporting return, in the case of motor
7vehicles or trailers that are required to be registered with
8an agency of this State, shall be the same document as the
9Uniform Invoice referred to in Section 5-402 of the Illinois
10Vehicle Code and must show the name and address of the seller;
11the name and address of the purchaser; the amount of the
12selling price including the amount allowed by the retailer for
13traded-in property, if any; the amount allowed by the retailer
14for the traded-in tangible personal property, if any, to the
15extent to which Section 1 of this Act allows an exemption for
16the value of traded-in property; the balance payable after
17deducting such trade-in allowance from the total selling
18price; the amount of tax due from the retailer with respect to
19such transaction; the amount of tax collected from the
20purchaser by the retailer on such transaction (or satisfactory
21evidence that such tax is not due in that particular instance,
22if that is claimed to be the fact); the place and date of the
23sale; a sufficient identification of the property sold; such
24other information as is required in Section 5-402 of the
25Illinois Vehicle Code, and such other information as the
26Department may reasonably require.

 

 

SB0157 Enrolled- 302 -LRB102 10128 HLH 16591 b

1    The transaction reporting return in the case of watercraft
2or aircraft must show the name and address of the seller; the
3name and address of the purchaser; the amount of the selling
4price including the amount allowed by the retailer for
5traded-in property, if any; the amount allowed by the retailer
6for the traded-in tangible personal property, if any, to the
7extent to which Section 1 of this Act allows an exemption for
8the value of traded-in property; the balance payable after
9deducting such trade-in allowance from the total selling
10price; the amount of tax due from the retailer with respect to
11such transaction; the amount of tax collected from the
12purchaser by the retailer on such transaction (or satisfactory
13evidence that such tax is not due in that particular instance,
14if that is claimed to be the fact); the place and date of the
15sale, a sufficient identification of the property sold, and
16such other information as the Department may reasonably
17require.
18    Such transaction reporting return shall be filed not later
19than 20 days after the day of delivery of the item that is
20being sold, but may be filed by the retailer at any time sooner
21than that if he chooses to do so. The transaction reporting
22return and tax remittance or proof of exemption from the
23Illinois use tax may be transmitted to the Department by way of
24the State agency with which, or State officer with whom the
25tangible personal property must be titled or registered (if
26titling or registration is required) if the Department and

 

 

SB0157 Enrolled- 303 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 304 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 305 -LRB102 10128 HLH 16591 b

1vice-president, secretary or treasurer or by the properly
2accredited agent of such corporation.
3    Where the seller is a limited liability company, the
4return filed on behalf of the limited liability company shall
5be signed by a manager, member, or properly accredited agent
6of the limited liability company.
7    Except as provided in this Section, the retailer filing
8the return under this Section shall, at the time of filing such
9return, pay to the Department the amount of tax imposed by this
10Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
11on and after January 1, 1990, or $5 per calendar year,
12whichever is greater, which is allowed to reimburse the
13retailer for the expenses incurred in keeping records,
14preparing and filing returns, remitting the tax and supplying
15data to the Department on request. On and after January 1,
162021, a certified service provider, as defined in the Leveling
17the Playing Field for Illinois Retail Act, filing the return
18under this Section on behalf of a remote retailer shall, at the
19time of such return, pay to the Department the amount of tax
20imposed by this Act less a discount of 1.75%. A remote retailer
21using a certified service provider to file a return on its
22behalf, as provided in the Leveling the Playing Field for
23Illinois Retail Act, is not eligible for the discount. When
24determining the discount allowed under this Section, retailers
25shall include the amount of tax that would have been due at the
261% rate but for the 0% rate imposed under this amendatory Act

 

 

SB0157 Enrolled- 306 -LRB102 10128 HLH 16591 b

1of the 102nd General Assembly. The discount under this Section
2is not allowed for the 1.25% portion of taxes paid on aviation
3fuel that is subject to the revenue use requirements of 49
4U.S.C. 47107(b) and 49 U.S.C. 47133. Any prepayment made
5pursuant to Section 2d of this Act shall be included in the
6amount on which such 2.1% or 1.75% discount is computed. In the
7case of retailers who report and pay the tax on a transaction
8by transaction basis, as provided in this Section, such
9discount shall be taken with each such tax remittance instead
10of when such retailer files his periodic return. The discount
11allowed under this Section is allowed only for returns that
12are filed in the manner required by this Act. The Department
13may disallow the discount for retailers whose certificate of
14registration is revoked at the time the return is filed, but
15only if the Department's decision to revoke the certificate of
16registration has become final.
17    Before October 1, 2000, if the taxpayer's average monthly
18tax liability to the Department under this Act, the Use Tax
19Act, the Service Occupation Tax Act, and the Service Use Tax
20Act, excluding any liability for prepaid sales tax to be
21remitted in accordance with Section 2d of this Act, was
22$10,000 or more during the preceding 4 complete calendar
23quarters, he shall file a return with the Department each
24month by the 20th day of the month next following the month
25during which such tax liability is incurred and shall make
26payments to the Department on or before the 7th, 15th, 22nd and

 

 

SB0157 Enrolled- 307 -LRB102 10128 HLH 16591 b

1last day of the month during which such liability is incurred.
2On and after October 1, 2000, if the taxpayer's average
3monthly tax liability to the Department under this Act, the
4Use Tax Act, the Service Occupation Tax Act, and the Service
5Use Tax Act, excluding any liability for prepaid sales tax to
6be remitted in accordance with Section 2d of this Act, was
7$20,000 or more during the preceding 4 complete calendar
8quarters, he shall file a return with the Department each
9month by the 20th day of the month next following the month
10during which such tax liability is incurred and shall make
11payment to the Department on or before the 7th, 15th, 22nd and
12last day of the month during which such liability is incurred.
13If the month during which such tax liability is incurred began
14prior to January 1, 1985, each payment shall be in an amount
15equal to 1/4 of the taxpayer's actual liability for the month
16or an amount set by the Department not to exceed 1/4 of the
17average monthly liability of the taxpayer to the Department
18for the preceding 4 complete calendar quarters (excluding the
19month of highest liability and the month of lowest liability
20in such 4 quarter period). If the month during which such tax
21liability is incurred begins on or after January 1, 1985 and
22prior to January 1, 1987, each payment shall be in an amount
23equal to 22.5% of the taxpayer's actual liability for the
24month or 27.5% of the taxpayer's liability for the same
25calendar month of the preceding year. If the month during
26which such tax liability is incurred begins on or after

 

 

SB0157 Enrolled- 308 -LRB102 10128 HLH 16591 b

1January 1, 1987 and prior to January 1, 1988, each payment
2shall be in an amount equal to 22.5% of the taxpayer's actual
3liability for the month or 26.25% of the taxpayer's liability
4for the same calendar month of the preceding year. If the month
5during which such tax liability is incurred begins on or after
6January 1, 1988, and prior to January 1, 1989, or begins on or
7after January 1, 1996, each payment shall be in an amount equal
8to 22.5% of the taxpayer's actual liability for the month or
925% of the taxpayer's liability for the same calendar month of
10the preceding year. If the month during which such tax
11liability is incurred begins on or after January 1, 1989, and
12prior to January 1, 1996, each payment shall be in an amount
13equal to 22.5% of the taxpayer's actual liability for the
14month or 25% of the taxpayer's liability for the same calendar
15month of the preceding year or 100% of the taxpayer's actual
16liability for the quarter monthly reporting period. The amount
17of such quarter monthly payments shall be credited against the
18final tax liability of the taxpayer's return for that month.
19Before October 1, 2000, once applicable, the requirement of
20the making of quarter monthly payments to the Department by
21taxpayers having an average monthly tax liability of $10,000
22or more as determined in the manner provided above shall
23continue until such taxpayer's average monthly liability to
24the Department during the preceding 4 complete calendar
25quarters (excluding the month of highest liability and the
26month of lowest liability) is less than $9,000, or until such

 

 

SB0157 Enrolled- 309 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 310 -LRB102 10128 HLH 16591 b

1The Department shall change such taxpayer's reporting status
2unless it finds that such change is seasonal in nature and not
3likely to be long term. Quarter monthly payment status shall
4be determined under this paragraph as if the rate reduction to
50% in this amendatory Act of the 102nd General Assembly on food
6for human consumption that is to be consumed off the premises
7where it is sold (other than alcoholic beverages, food
8consisting of or infused with adult use cannabis, soft drinks,
9and food that has been prepared for immediate consumption) had
10not occurred. For quarter monthly payments due under this
11paragraph on or after July 1, 2023 and through June 30, 2024,
12"25% of the taxpayer's liability for the same calendar month
13of the preceding year" shall be determined as if the rate
14reduction to 0% in this amendatory Act of the 102nd General
15Assembly had not occurred. If any such quarter monthly payment
16is not paid at the time or in the amount required by this
17Section, then the taxpayer shall be liable for penalties and
18interest on the difference between the minimum amount due as a
19payment and the amount of such quarter monthly payment
20actually and timely paid, except insofar as the taxpayer has
21previously made payments for that month to the Department in
22excess of the minimum payments previously due as provided in
23this Section. The Department shall make reasonable rules and
24regulations to govern the quarter monthly payment amount and
25quarter monthly payment dates for taxpayers who file on other
26than a calendar monthly basis.

 

 

SB0157 Enrolled- 311 -LRB102 10128 HLH 16591 b

1    The provisions of this paragraph apply before October 1,
22001. Without regard to whether a taxpayer is required to make
3quarter monthly payments as specified above, any taxpayer who
4is required by Section 2d of this Act to collect and remit
5prepaid taxes and has collected prepaid taxes which average in
6excess of $25,000 per month during the preceding 2 complete
7calendar quarters, shall file a return with the Department as
8required by Section 2f and shall make payments to the
9Department on or before the 7th, 15th, 22nd and last day of the
10month during which such liability is incurred. If the month
11during which such tax liability is incurred began prior to
12September 1, 1985 (the effective date of Public Act 84-221),
13each payment shall be in an amount not less than 22.5% of the
14taxpayer's actual liability under Section 2d. If the month
15during which such tax liability is incurred begins on or after
16January 1, 1986, each payment shall be in an amount equal to
1722.5% of the taxpayer's actual liability for the month or
1827.5% of the taxpayer's liability for the same calendar month
19of the preceding calendar year. If the month during which such
20tax liability is incurred begins on or after January 1, 1987,
21each payment shall be in an amount equal to 22.5% of the
22taxpayer's actual liability for the month or 26.25% of the
23taxpayer's liability for the same calendar month of the
24preceding year. The amount of such quarter monthly payments
25shall be credited against the final tax liability of the
26taxpayer's return for that month filed under this Section or

 

 

SB0157 Enrolled- 312 -LRB102 10128 HLH 16591 b

1Section 2f, as the case may be. Once applicable, the
2requirement of the making of quarter monthly payments to the
3Department pursuant to this paragraph shall continue until
4such taxpayer's average monthly prepaid tax collections during
5the preceding 2 complete calendar quarters is $25,000 or less.
6If any such quarter monthly payment is not paid at the time or
7in the amount required, the taxpayer shall be liable for
8penalties and interest on such difference, except insofar as
9the taxpayer has previously made payments for that month in
10excess of the minimum payments previously due.
11    The provisions of this paragraph apply on and after
12October 1, 2001. Without regard to whether a taxpayer is
13required to make quarter monthly payments as specified above,
14any taxpayer who is required by Section 2d of this Act to
15collect and remit prepaid taxes and has collected prepaid
16taxes that average in excess of $20,000 per month during the
17preceding 4 complete calendar quarters shall file a return
18with the Department as required by Section 2f and shall make
19payments to the Department on or before the 7th, 15th, 22nd and
20last day of the month during which the liability is incurred.
21Each payment shall be in an amount equal to 22.5% of the
22taxpayer's actual liability for the month or 25% of the
23taxpayer's liability for the same calendar month of the
24preceding year. The amount of the quarter monthly payments
25shall be credited against the final tax liability of the
26taxpayer's return for that month filed under this Section or

 

 

SB0157 Enrolled- 313 -LRB102 10128 HLH 16591 b

1Section 2f, as the case may be. Once applicable, the
2requirement of the making of quarter monthly payments to the
3Department pursuant to this paragraph shall continue until the
4taxpayer's average monthly prepaid tax collections during the
5preceding 4 complete calendar quarters (excluding the month of
6highest liability and the month of lowest liability) is less
7than $19,000 or until such taxpayer's average monthly
8liability to the Department as computed for each calendar
9quarter of the 4 preceding complete calendar quarters is less
10than $20,000. If any such quarter monthly payment is not paid
11at the time or in the amount required, the taxpayer shall be
12liable for penalties and interest on such difference, except
13insofar as the taxpayer has previously made payments for that
14month in excess of the minimum payments previously due.
15    If any payment provided for in this Section exceeds the
16taxpayer's liabilities under this Act, the Use Tax Act, the
17Service Occupation Tax Act and the Service Use Tax Act, as
18shown on an original monthly return, the Department shall, if
19requested by the taxpayer, issue to the taxpayer a credit
20memorandum no later than 30 days after the date of payment. The
21credit evidenced by such credit memorandum may be assigned by
22the taxpayer to a similar taxpayer under this Act, the Use Tax
23Act, the Service Occupation Tax Act or the Service Use Tax Act,
24in accordance with reasonable rules and regulations to be
25prescribed by the Department. If no such request is made, the
26taxpayer may credit such excess payment against tax liability

 

 

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1subsequently to be remitted to the Department under this Act,
2the Use Tax Act, the Service Occupation Tax Act or the Service
3Use Tax Act, in accordance with reasonable rules and
4regulations prescribed by the Department. If the Department
5subsequently determined that all or any part of the credit
6taken was not actually due to the taxpayer, the taxpayer's
72.1% and 1.75% vendor's discount shall be reduced by 2.1% or
81.75% of the difference between the credit taken and that
9actually due, and that taxpayer shall be liable for penalties
10and interest on such difference.
11    If a retailer of motor fuel is entitled to a credit under
12Section 2d of this Act which exceeds the taxpayer's liability
13to the Department under this Act for the month for which the
14taxpayer is filing a return, the Department shall issue the
15taxpayer a credit memorandum for the excess.
16    Beginning January 1, 1990, each month the Department shall
17pay into the Local Government Tax Fund, a special fund in the
18State treasury which is hereby created, the net revenue
19realized for the preceding month from the 1% tax imposed under
20this Act.
21    Beginning January 1, 1990, each month the Department shall
22pay into the County and Mass Transit District Fund, a special
23fund in the State treasury which is hereby created, 4% of the
24net revenue realized for the preceding month from the 6.25%
25general rate other than aviation fuel sold on or after
26December 1, 2019. This exception for aviation fuel only

 

 

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1applies for so long as the revenue use requirements of 49
2U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
3    Beginning August 1, 2000, each month the Department shall
4pay into the County and Mass Transit District Fund 20% of the
5net revenue realized for the preceding month from the 1.25%
6rate on the selling price of motor fuel and gasohol. Beginning
7September 1, 2010, each month the Department shall pay into
8the County and Mass Transit District Fund 20% of the net
9revenue realized for the preceding month from the 1.25% rate
10on the selling price of sales tax holiday items.
11    Beginning January 1, 1990, each month the Department shall
12pay into the Local Government Tax Fund 16% of the net revenue
13realized for the preceding month from the 6.25% general rate
14on the selling price of tangible personal property other than
15aviation fuel sold on or after December 1, 2019. This
16exception for aviation fuel only applies for so long as the
17revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1847133 are binding on the State.
19    For aviation fuel sold on or after December 1, 2019, each
20month the Department shall pay into the State Aviation Program
21Fund 20% of the net revenue realized for the preceding month
22from the 6.25% general rate on the selling price of aviation
23fuel, less an amount estimated by the Department to be
24required for refunds of the 20% portion of the tax on aviation
25fuel under this Act, which amount shall be deposited into the
26Aviation Fuel Sales Tax Refund Fund. The Department shall only

 

 

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1pay moneys into the State Aviation Program Fund and the
2Aviation Fuel Sales Tax Refund Fund under this Act for so long
3as the revenue use requirements of 49 U.S.C. 47107(b) and 49
4U.S.C. 47133 are binding on the State.
5    Beginning August 1, 2000, each month the Department shall
6pay into the Local Government Tax Fund 80% of the net revenue
7realized for the preceding month from the 1.25% rate on the
8selling price of motor fuel and gasohol. Beginning September
91, 2010, each month the Department shall pay into the Local
10Government Tax Fund 80% of the net revenue realized for the
11preceding month from the 1.25% rate on the selling price of
12sales tax holiday items.
13    Beginning October 1, 2009, each month the Department shall
14pay into the Capital Projects Fund an amount that is equal to
15an amount estimated by the Department to represent 80% of the
16net revenue realized for the preceding month from the sale of
17candy, grooming and hygiene products, and soft drinks that had
18been taxed at a rate of 1% prior to September 1, 2009 but that
19are now taxed at 6.25%.
20    Beginning July 1, 2011, each month the Department shall
21pay into the Clean Air Act Permit Fund 80% of the net revenue
22realized for the preceding month from the 6.25% general rate
23on the selling price of sorbents used in Illinois in the
24process of sorbent injection as used to comply with the
25Environmental Protection Act or the federal Clean Air Act, but
26the total payment into the Clean Air Act Permit Fund under this

 

 

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1Act and the Use Tax Act shall not exceed $2,000,000 in any
2fiscal year.
3    Beginning July 1, 2013, each month the Department shall
4pay into the Underground Storage Tank Fund from the proceeds
5collected under this Act, the Use Tax Act, the Service Use Tax
6Act, and the Service Occupation Tax Act an amount equal to the
7average monthly deficit in the Underground Storage Tank Fund
8during the prior year, as certified annually by the Illinois
9Environmental Protection Agency, but the total payment into
10the Underground Storage Tank Fund under this Act, the Use Tax
11Act, the Service Use Tax Act, and the Service Occupation Tax
12Act shall not exceed $18,000,000 in any State fiscal year. As
13used in this paragraph, the "average monthly deficit" shall be
14equal to the difference between the average monthly claims for
15payment by the fund and the average monthly revenues deposited
16into the fund, excluding payments made pursuant to this
17paragraph.
18    Beginning July 1, 2015, of the remainder of the moneys
19received by the Department under the Use Tax Act, the Service
20Use Tax Act, the Service Occupation Tax Act, and this Act, each
21month the Department shall deposit $500,000 into the State
22Crime Laboratory Fund.
23    Of the remainder of the moneys received by the Department
24pursuant to this Act, (a) 1.75% thereof shall be paid into the
25Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
26and after July 1, 1989, 3.8% thereof shall be paid into the

 

 

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1Build Illinois Fund; provided, however, that if in any fiscal
2year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
3may be, of the moneys received by the Department and required
4to be paid into the Build Illinois Fund pursuant to this Act,
5Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
6Act, and Section 9 of the Service Occupation Tax Act, such Acts
7being hereinafter called the "Tax Acts" and such aggregate of
82.2% or 3.8%, as the case may be, of moneys being hereinafter
9called the "Tax Act Amount", and (2) the amount transferred to
10the Build Illinois Fund from the State and Local Sales Tax
11Reform Fund shall be less than the Annual Specified Amount (as
12hereinafter defined), an amount equal to the difference shall
13be immediately paid into the Build Illinois Fund from other
14moneys received by the Department pursuant to the Tax Acts;
15the "Annual Specified Amount" means the amounts specified
16below for fiscal years 1986 through 1993:
17Fiscal YearAnnual Specified Amount
181986$54,800,000
191987$76,650,000
201988$80,480,000
211989$88,510,000
221990$115,330,000
231991$145,470,000
241992$182,730,000
251993$206,520,000;
26and means the Certified Annual Debt Service Requirement (as

 

 

SB0157 Enrolled- 319 -LRB102 10128 HLH 16591 b

1defined in Section 13 of the Build Illinois Bond Act) or the
2Tax Act Amount, whichever is greater, for fiscal year 1994 and
3each fiscal year thereafter; and further provided, that if on
4the last business day of any month the sum of (1) the Tax Act
5Amount required to be deposited into the Build Illinois Bond
6Account in the Build Illinois Fund during such month and (2)
7the amount transferred to the Build Illinois Fund from the
8State and Local Sales Tax Reform Fund shall have been less than
91/12 of the Annual Specified Amount, an amount equal to the
10difference shall be immediately paid into the Build Illinois
11Fund from other moneys received by the Department pursuant to
12the Tax Acts; and, further provided, that in no event shall the
13payments required under the preceding proviso result in
14aggregate payments into the Build Illinois Fund pursuant to
15this clause (b) for any fiscal year in excess of the greater of
16(i) the Tax Act Amount or (ii) the Annual Specified Amount for
17such fiscal year. The amounts payable into the Build Illinois
18Fund under clause (b) of the first sentence in this paragraph
19shall be payable only until such time as the aggregate amount
20on deposit under each trust indenture securing Bonds issued
21and outstanding pursuant to the Build Illinois Bond Act is
22sufficient, taking into account any future investment income,
23to fully provide, in accordance with such indenture, for the
24defeasance of or the payment of the principal of, premium, if
25any, and interest on the Bonds secured by such indenture and on
26any Bonds expected to be issued thereafter and all fees and

 

 

SB0157 Enrolled- 320 -LRB102 10128 HLH 16591 b

1costs payable with respect thereto, all as certified by the
2Director of the Bureau of the Budget (now Governor's Office of
3Management and Budget). If on the last business day of any
4month in which Bonds are outstanding pursuant to the Build
5Illinois Bond Act, the aggregate of moneys deposited in the
6Build Illinois Bond Account in the Build Illinois Fund in such
7month shall be less than the amount required to be transferred
8in such month from the Build Illinois Bond Account to the Build
9Illinois Bond Retirement and Interest Fund pursuant to Section
1013 of the Build Illinois Bond Act, an amount equal to such
11deficiency shall be immediately paid from other moneys
12received by the Department pursuant to the Tax Acts to the
13Build Illinois Fund; provided, however, that any amounts paid
14to the Build Illinois Fund in any fiscal year pursuant to this
15sentence shall be deemed to constitute payments pursuant to
16clause (b) of the first sentence of this paragraph and shall
17reduce the amount otherwise payable for such fiscal year
18pursuant to that clause (b). The moneys received by the
19Department pursuant to this Act and required to be deposited
20into the Build Illinois Fund are subject to the pledge, claim
21and charge set forth in Section 12 of the Build Illinois Bond
22Act.
23    Subject to payment of amounts into the Build Illinois Fund
24as provided in the preceding paragraph or in any amendment
25thereto hereafter enacted, the following specified monthly
26installment of the amount requested in the certificate of the

 

 

SB0157 Enrolled- 321 -LRB102 10128 HLH 16591 b

1Chairman of the Metropolitan Pier and Exposition Authority
2provided under Section 8.25f of the State Finance Act, but not
3in excess of sums designated as "Total Deposit", shall be
4deposited in the aggregate from collections under Section 9 of
5the Use Tax Act, Section 9 of the Service Use Tax Act, Section
69 of the Service Occupation Tax Act, and Section 3 of the
7Retailers' Occupation Tax Act into the McCormick Place
8Expansion Project Fund in the specified fiscal years.
9Fiscal YearTotal Deposit
101993         $0
111994 53,000,000
121995 58,000,000
131996 61,000,000
141997 64,000,000
151998 68,000,000
161999 71,000,000
172000 75,000,000
182001 80,000,000
192002 93,000,000
202003 99,000,000
212004103,000,000
222005108,000,000
232006113,000,000
242007119,000,000
252008126,000,000
262009132,000,000

 

 

SB0157 Enrolled- 322 -LRB102 10128 HLH 16591 b

12010139,000,000
22011146,000,000
32012153,000,000
42013161,000,000
52014170,000,000
62015179,000,000
72016189,000,000
82017199,000,000
92018210,000,000
102019221,000,000
112020233,000,000
122021300,000,000
132022300,000,000
142023300,000,000
152024 300,000,000
162025 300,000,000
172026 300,000,000
182027 375,000,000
192028 375,000,000
202029 375,000,000
212030 375,000,000
222031 375,000,000
232032 375,000,000
242033375,000,000
252034375,000,000
262035375,000,000

 

 

SB0157 Enrolled- 323 -LRB102 10128 HLH 16591 b

12036450,000,000
2and
3each fiscal year
4thereafter that bonds
5are outstanding under
6Section 13.2 of the
7Metropolitan Pier and
8Exposition Authority Act,
9but not after fiscal year 2060.
10    Beginning July 20, 1993 and in each month of each fiscal
11year thereafter, one-eighth of the amount requested in the
12certificate of the Chairman of the Metropolitan Pier and
13Exposition Authority for that fiscal year, less the amount
14deposited into the McCormick Place Expansion Project Fund by
15the State Treasurer in the respective month under subsection
16(g) of Section 13 of the Metropolitan Pier and Exposition
17Authority Act, plus cumulative deficiencies in the deposits
18required under this Section for previous months and years,
19shall be deposited into the McCormick Place Expansion Project
20Fund, until the full amount requested for the fiscal year, but
21not in excess of the amount specified above as "Total
22Deposit", has been deposited.
23    Subject to payment of amounts into the Capital Projects
24Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
25and the McCormick Place Expansion Project Fund pursuant to the
26preceding paragraphs or in any amendments thereto hereafter

 

 

SB0157 Enrolled- 324 -LRB102 10128 HLH 16591 b

1enacted, for aviation fuel sold on or after December 1, 2019,
2the Department shall each month deposit into the Aviation Fuel
3Sales Tax Refund Fund an amount estimated by the Department to
4be required for refunds of the 80% portion of the tax on
5aviation fuel under this Act. The Department shall only
6deposit moneys into the Aviation Fuel Sales Tax Refund Fund
7under this paragraph for so long as the revenue use
8requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
9binding on the State.
10    Subject to payment of amounts into the Build Illinois Fund
11and the McCormick Place Expansion Project Fund pursuant to the
12preceding paragraphs or in any amendments thereto hereafter
13enacted, beginning July 1, 1993 and ending on September 30,
142013, the Department shall each month pay into the Illinois
15Tax Increment Fund 0.27% of 80% of the net revenue realized for
16the preceding month from the 6.25% general rate on the selling
17price of tangible personal property.
18    Subject to payment of amounts into the Build Illinois Fund
19and the McCormick Place Expansion Project Fund pursuant to the
20preceding paragraphs or in any amendments thereto hereafter
21enacted, beginning with the receipt of the first report of
22taxes paid by an eligible business and continuing for a
2325-year period, the Department shall each month pay into the
24Energy Infrastructure Fund 80% of the net revenue realized
25from the 6.25% general rate on the selling price of
26Illinois-mined coal that was sold to an eligible business. For

 

 

SB0157 Enrolled- 325 -LRB102 10128 HLH 16591 b

1purposes of this paragraph, the term "eligible business" means
2a new electric generating facility certified pursuant to
3Section 605-332 of the Department of Commerce and Economic
4Opportunity Law of the Civil Administrative Code of Illinois.
5    Subject to payment of amounts into the Build Illinois
6Fund, the McCormick Place Expansion Project Fund, the Illinois
7Tax Increment Fund, and the Energy Infrastructure Fund
8pursuant to the preceding paragraphs or in any amendments to
9this Section hereafter enacted, beginning on the first day of
10the first calendar month to occur on or after August 26, 2014
11(the effective date of Public Act 98-1098), each month, from
12the collections made under Section 9 of the Use Tax Act,
13Section 9 of the Service Use Tax Act, Section 9 of the Service
14Occupation Tax Act, and Section 3 of the Retailers' Occupation
15Tax Act, the Department shall pay into the Tax Compliance and
16Administration Fund, to be used, subject to appropriation, to
17fund additional auditors and compliance personnel at the
18Department of Revenue, an amount equal to 1/12 of 5% of 80% of
19the cash receipts collected during the preceding fiscal year
20by the Audit Bureau of the Department under the Use Tax Act,
21the Service Use Tax Act, the Service Occupation Tax Act, the
22Retailers' Occupation Tax Act, and associated local occupation
23and use taxes administered by the Department.
24    Subject to payments of amounts into the Build Illinois
25Fund, the McCormick Place Expansion Project Fund, the Illinois
26Tax Increment Fund, the Energy Infrastructure Fund, and the

 

 

SB0157 Enrolled- 326 -LRB102 10128 HLH 16591 b

1Tax Compliance and Administration Fund as provided in this
2Section, beginning on July 1, 2018 the Department shall pay
3each month into the Downstate Public Transportation Fund the
4moneys required to be so paid under Section 2-3 of the
5Downstate Public Transportation Act.
6    Subject to successful execution and delivery of a
7public-private agreement between the public agency and private
8entity and completion of the civic build, beginning on July 1,
92023, of the remainder of the moneys received by the
10Department under the Use Tax Act, the Service Use Tax Act, the
11Service Occupation Tax Act, and this Act, the Department shall
12deposit the following specified deposits in the aggregate from
13collections under the Use Tax Act, the Service Use Tax Act, the
14Service Occupation Tax Act, and the Retailers' Occupation Tax
15Act, as required under Section 8.25g of the State Finance Act
16for distribution consistent with the Public-Private
17Partnership for Civic and Transit Infrastructure Project Act.
18The moneys received by the Department pursuant to this Act and
19required to be deposited into the Civic and Transit
20Infrastructure Fund are subject to the pledge, claim and
21charge set forth in Section 25-55 of the Public-Private
22Partnership for Civic and Transit Infrastructure Project Act.
23As used in this paragraph, "civic build", "private entity",
24"public-private agreement", and "public agency" have the
25meanings provided in Section 25-10 of the Public-Private
26Partnership for Civic and Transit Infrastructure Project Act.

 

 

SB0157 Enrolled- 327 -LRB102 10128 HLH 16591 b

1        Fiscal Year.............................Total Deposit
2        2024.....................................$200,000,000
3        2025....................................$206,000,000
4        2026....................................$212,200,000
5        2027....................................$218,500,000
6        2028....................................$225,100,000
7        2029....................................$288,700,000
8        2030....................................$298,900,000
9        2031....................................$309,300,000
10        2032....................................$320,100,000
11        2033....................................$331,200,000
12        2034....................................$341,200,000
13        2035....................................$351,400,000
14        2036....................................$361,900,000
15        2037....................................$372,800,000
16        2038....................................$384,000,000
17        2039....................................$395,500,000
18        2040....................................$407,400,000
19        2041....................................$419,600,000
20        2042....................................$432,200,000
21        2043....................................$445,100,000
22    Beginning July 1, 2021 and until July 1, 2022, subject to
23the payment of amounts into the County and Mass Transit
24District Fund, the Local Government Tax Fund, the Build
25Illinois Fund, the McCormick Place Expansion Project Fund, the
26Illinois Tax Increment Fund, the Energy Infrastructure Fund,

 

 

SB0157 Enrolled- 328 -LRB102 10128 HLH 16591 b

1and the Tax Compliance and Administration Fund as provided in
2this Section, the Department shall pay each month into the
3Road Fund the amount estimated to represent 16% of the net
4revenue realized from the taxes imposed on motor fuel and
5gasohol. Beginning July 1, 2022 and until July 1, 2023,
6subject to the payment of amounts into the County and Mass
7Transit District Fund, the Local Government Tax Fund, the
8Build Illinois Fund, the McCormick Place Expansion Project
9Fund, the Illinois Tax Increment Fund, the Energy
10Infrastructure Fund, and the Tax Compliance and Administration
11Fund as provided in this Section, the Department shall pay
12each month into the Road Fund the amount estimated to
13represent 32% of the net revenue realized from the taxes
14imposed on motor fuel and gasohol. Beginning July 1, 2023 and
15until July 1, 2024, subject to the payment of amounts into the
16County and Mass Transit District Fund, the Local Government
17Tax Fund, the Build Illinois Fund, the McCormick Place
18Expansion Project Fund, the Illinois Tax Increment Fund, the
19Energy Infrastructure Fund, and the Tax Compliance and
20Administration Fund as provided in this Section, the
21Department shall pay each month into the Road Fund the amount
22estimated to represent 48% of the net revenue realized from
23the taxes imposed on motor fuel and gasohol. Beginning July 1,
242024 and until July 1, 2025, subject to the payment of amounts
25into the County and Mass Transit District Fund, the Local
26Government Tax Fund, the Build Illinois Fund, the McCormick

 

 

SB0157 Enrolled- 329 -LRB102 10128 HLH 16591 b

1Place Expansion Project Fund, the Illinois Tax Increment Fund,
2the Energy Infrastructure Fund, and the Tax Compliance and
3Administration Fund as provided in this Section, the
4Department shall pay each month into the Road Fund the amount
5estimated to represent 64% of the net revenue realized from
6the taxes imposed on motor fuel and gasohol. Beginning on July
71, 2025, subject to the payment of amounts into the County and
8Mass Transit District Fund, the Local Government Tax Fund, the
9Build Illinois Fund, the McCormick Place Expansion Project
10Fund, the Illinois Tax Increment Fund, the Energy
11Infrastructure Fund, and the Tax Compliance and Administration
12Fund as provided in this Section, the Department shall pay
13each month into the Road Fund the amount estimated to
14represent 80% of the net revenue realized from the taxes
15imposed on motor fuel and gasohol. As used in this paragraph
16"motor fuel" has the meaning given to that term in Section 1.1
17of the Motor Fuel Tax Law Act, and "gasohol" has the meaning
18given to that term in Section 3-40 of the Use Tax Act.
19    Of the remainder of the moneys received by the Department
20pursuant to this Act, 75% thereof shall be paid into the State
21Treasury and 25% shall be reserved in a special account and
22used only for the transfer to the Common School Fund as part of
23the monthly transfer from the General Revenue Fund in
24accordance with Section 8a of the State Finance Act.
25    The Department may, upon separate written notice to a
26taxpayer, require the taxpayer to prepare and file with the

 

 

SB0157 Enrolled- 330 -LRB102 10128 HLH 16591 b

1Department on a form prescribed by the Department within not
2less than 60 days after receipt of the notice an annual
3information return for the tax year specified in the notice.
4Such annual return to the Department shall include a statement
5of gross receipts as shown by the retailer's last Federal
6income tax return. If the total receipts of the business as
7reported in the Federal income tax return do not agree with the
8gross receipts reported to the Department of Revenue for the
9same period, the retailer shall attach to his annual return a
10schedule showing a reconciliation of the 2 amounts and the
11reasons for the difference. The retailer's annual return to
12the Department shall also disclose the cost of goods sold by
13the retailer during the year covered by such return, opening
14and closing inventories of such goods for such year, costs of
15goods used from stock or taken from stock and given away by the
16retailer during such year, payroll information of the
17retailer's business during such year and any additional
18reasonable information which the Department deems would be
19helpful in determining the accuracy of the monthly, quarterly
20or annual returns filed by such retailer as provided for in
21this Section.
22    If the annual information return required by this Section
23is not filed when and as required, the taxpayer shall be liable
24as follows:
25        (i) Until January 1, 1994, the taxpayer shall be
26    liable for a penalty equal to 1/6 of 1% of the tax due from

 

 

SB0157 Enrolled- 331 -LRB102 10128 HLH 16591 b

1    such taxpayer under this Act during the period to be
2    covered by the annual return for each month or fraction of
3    a month until such return is filed as required, the
4    penalty to be assessed and collected in the same manner as
5    any other penalty provided for in this Act.
6        (ii) On and after January 1, 1994, the taxpayer shall
7    be liable for a penalty as described in Section 3-4 of the
8    Uniform Penalty and Interest Act.
9    The chief executive officer, proprietor, owner or highest
10ranking manager shall sign the annual return to certify the
11accuracy of the information contained therein. Any person who
12willfully signs the annual return containing false or
13inaccurate information shall be guilty of perjury and punished
14accordingly. The annual return form prescribed by the
15Department shall include a warning that the person signing the
16return may be liable for perjury.
17    The provisions of this Section concerning the filing of an
18annual information return do not apply to a retailer who is not
19required to file an income tax return with the United States
20Government.
21    As soon as possible after the first day of each month, upon
22certification of the Department of Revenue, the Comptroller
23shall order transferred and the Treasurer shall transfer from
24the General Revenue Fund to the Motor Fuel Tax Fund an amount
25equal to 1.7% of 80% of the net revenue realized under this Act
26for the second preceding month. Beginning April 1, 2000, this

 

 

SB0157 Enrolled- 332 -LRB102 10128 HLH 16591 b

1transfer is no longer required and shall not be made.
2    Net revenue realized for a month shall be the revenue
3collected by the State pursuant to this Act, less the amount
4paid out during that month as refunds to taxpayers for
5overpayment of liability.
6    For greater simplicity of administration, manufacturers,
7importers and wholesalers whose products are sold at retail in
8Illinois by numerous retailers, and who wish to do so, may
9assume the responsibility for accounting and paying to the
10Department all tax accruing under this Act with respect to
11such sales, if the retailers who are affected do not make
12written objection to the Department to this arrangement.
13    Any person who promotes, organizes, provides retail
14selling space for concessionaires or other types of sellers at
15the Illinois State Fair, DuQuoin State Fair, county fairs,
16local fairs, art shows, flea markets and similar exhibitions
17or events, including any transient merchant as defined by
18Section 2 of the Transient Merchant Act of 1987, is required to
19file a report with the Department providing the name of the
20merchant's business, the name of the person or persons engaged
21in merchant's business, the permanent address and Illinois
22Retailers Occupation Tax Registration Number of the merchant,
23the dates and location of the event and other reasonable
24information that the Department may require. The report must
25be filed not later than the 20th day of the month next
26following the month during which the event with retail sales

 

 

SB0157 Enrolled- 333 -LRB102 10128 HLH 16591 b

1was held. Any person who fails to file a report required by
2this Section commits a business offense and is subject to a
3fine not to exceed $250.
4    Any person engaged in the business of selling tangible
5personal property at retail as a concessionaire or other type
6of seller at the Illinois State Fair, county fairs, art shows,
7flea markets and similar exhibitions or events, or any
8transient merchants, as defined by Section 2 of the Transient
9Merchant Act of 1987, may be required to make a daily report of
10the amount of such sales to the Department and to make a daily
11payment of the full amount of tax due. The Department shall
12impose this requirement when it finds that there is a
13significant risk of loss of revenue to the State at such an
14exhibition or event. Such a finding shall be based on evidence
15that a substantial number of concessionaires or other sellers
16who are not residents of Illinois will be engaging in the
17business of selling tangible personal property at retail at
18the exhibition or event, or other evidence of a significant
19risk of loss of revenue to the State. The Department shall
20notify concessionaires and other sellers affected by the
21imposition of this requirement. In the absence of notification
22by the Department, the concessionaires and other sellers shall
23file their returns as otherwise required in this Section.
24(Source: P.A. 101-10, Article 15, Section 15-25, eff. 6-5-19;
25101-10, Article 25, Section 25-120, eff. 6-5-19; 101-27, eff.
266-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;

 

 

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1101-636, eff. 6-10-20; 102-634, eff. 8-27-21; revised
212-7-21.)
 
3    Section 60-35. The Innovation Development and Economy Act
4is amended by changing Sections 10 and 31 as follows:
 
5    (50 ILCS 470/10)
6    Sec. 10. Definitions. As used in this Act, the following
7words and phrases shall have the following meanings unless a
8different meaning clearly appears from the context:
9    "Base year" means the calendar year immediately prior to
10the calendar year in which the STAR bond district is
11established.
12    "Commence work" means the manifest commencement of actual
13operations on the development site, such as, erecting a
14building, general on-site and off-site grading and utility
15installations, commencing design and construction
16documentation, ordering lead-time materials, excavating the
17ground to lay a foundation or a basement, or work of like
18description which a reasonable person would recognize as being
19done with the intention and purpose to continue work until the
20project is completed.
21    "County" means the county in which a proposed STAR bond
22district is located.
23    "De minimis" means an amount less than 15% of the land area
24within a STAR bond district.

 

 

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1    "Department of Revenue" means the Department of Revenue of
2the State of Illinois.
3    "Destination user" means an owner, operator, licensee,
4co-developer, subdeveloper, or tenant (i) that operates a
5business within a STAR bond district that is a retail store
6having at least 150,000 square feet of sales floor area; (ii)
7that at the time of opening does not have another Illinois
8location within a 70 mile radius; (iii) that has an annual
9average of not less than 30% of customers who travel from at
10least 75 miles away or from out-of-state, as demonstrated by
11data from a comparable existing store or stores, or, if there
12is no comparable existing store, as demonstrated by an
13economic analysis that shows that the proposed retailer will
14have an annual average of not less than 30% of customers who
15travel from at least 75 miles away or from out-of-state; and
16(iv) that makes an initial capital investment, including
17project costs and other direct costs, of not less than
18$30,000,000 for such retail store.
19    "Destination hotel" means a hotel (as that term is defined
20in Section 2 of the Hotel Operators' Occupation Tax Act)
21complex having at least 150 guest rooms and which also
22includes a venue for entertainment attractions, rides, or
23other activities oriented toward the entertainment and
24amusement of its guests and other patrons.
25    "Developer" means any individual, corporation, trust,
26estate, partnership, limited liability partnership, limited

 

 

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1liability company, or other entity. The term does not include
2a not-for-profit entity, political subdivision, or other
3agency or instrumentality of the State.
4    "Director" means the Director of Revenue, who shall
5consult with the Director of Commerce and Economic Opportunity
6in any approvals or decisions required by the Director under
7this Act.
8    "Economic impact study" means a study conducted by an
9independent economist to project the financial benefit of the
10proposed STAR bond project to the local, regional, and State
11economies, consider the proposed adverse impacts on similar
12projects and businesses, as well as municipalities within the
13projected market area, and draw conclusions about the net
14effect of the proposed STAR bond project on the local,
15regional, and State economies. A copy of the economic impact
16study shall be provided to the Director for review.
17    "Eligible area" means any improved or vacant area that (i)
18is contiguous and is not, in the aggregate, less than 250 acres
19nor more than 500 acres which must include only parcels of real
20property directly and substantially benefited by the proposed
21STAR bond district plan, (ii) is adjacent to a federal
22interstate highway, (iii) is within one mile of 2 State
23highways, (iv) is within one mile of an entertainment user, or
24a major or minor league sports stadium or other similar
25entertainment venue that had an initial capital investment of
26at least $20,000,000, and (v) includes land that was

 

 

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1previously surface or strip mined. The area may be bisected by
2streets, highways, roads, alleys, railways, bike paths,
3streams, rivers, and other waterways and still be deemed
4contiguous. In addition, in order to constitute an eligible
5area one of the following requirements must be satisfied and
6all of which are subject to the review and approval of the
7Director as provided in subsection (d) of Section 15:
8        (a) the governing body of the political subdivision
9    shall have determined that the area meets the requirements
10    of a "blighted area" as defined under the Tax Increment
11    Allocation Redevelopment Act; or
12        (b) the governing body of the political subdivision
13    shall have determined that the area is a blighted area as
14    determined under the provisions of Section 11-74.3-5 of
15    the Illinois Municipal Code; or
16        (c) the governing body of the political subdivision
17    shall make the following findings:
18            (i) that the vacant portions of the area have
19        remained vacant for at least one year, or that any
20        building located on a vacant portion of the property
21        was demolished within the last year and that the
22        building would have qualified under item (ii) of this
23        subsection;
24            (ii) if portions of the area are currently
25        developed, that the use, condition, and character of
26        the buildings on the property are not consistent with

 

 

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1        the purposes set forth in Section 5;
2            (iii) that the STAR bond district is expected to
3        create or retain job opportunities within the
4        political subdivision;
5            (iv) that the STAR bond district will serve to
6        further the development of adjacent areas;
7            (v) that without the availability of STAR bonds,
8        the projects described in the STAR bond district plan
9        would not be possible;
10            (vi) that the master developer meets high
11        standards of creditworthiness and financial strength
12        as demonstrated by one or more of the following: (i)
13        corporate debenture ratings of BBB or higher by
14        Standard & Poor's Corporation or Baa or higher by
15        Moody's Investors Service, Inc.; (ii) a letter from a
16        financial institution with assets of $10,000,000 or
17        more attesting to the financial strength of the master
18        developer; or (iii) specific evidence of equity
19        financing for not less than 10% of the estimated total
20        STAR bond project costs;
21            (vii) that the STAR bond district will strengthen
22        the commercial sector of the political subdivision;
23            (viii) that the STAR bond district will enhance
24        the tax base of the political subdivision; and
25            (ix) that the formation of a STAR bond district is
26        in the best interest of the political subdivision.

 

 

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1    "Entertainment user" means an owner, operator, licensee,
2co-developer, subdeveloper, or tenant that operates a business
3within a STAR bond district that has a primary use of providing
4a venue for entertainment attractions, rides, or other
5activities oriented toward the entertainment and amusement of
6its patrons, occupies at least 20 acres of land in the STAR
7bond district, and makes an initial capital investment,
8including project costs and other direct and indirect costs,
9of not less than $25,000,000 for that venue.
10    "Feasibility study" means a feasibility study as defined
11in subsection (b) of Section 20.
12    "Infrastructure" means the public improvements and private
13improvements that serve the public purposes set forth in
14Section 5 of this Act and that benefit the STAR bond district
15or any STAR bond projects, including, but not limited to,
16streets, drives and driveways, traffic and directional signs
17and signals, parking lots and parking facilities,
18interchanges, highways, sidewalks, bridges, underpasses and
19overpasses, bike and walking trails, sanitary storm sewers and
20lift stations, drainage conduits, channels, levees, canals,
21storm water detention and retention facilities, utilities and
22utility connections, water mains and extensions, and street
23and parking lot lighting and connections.
24    "Local sales taxes" means any locally-imposed taxes
25received by a municipality, county, or other local
26governmental entity arising from sales by retailers and

 

 

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1servicemen within a STAR bond district, including business
2district sales taxes and STAR bond occupation taxes, and that
3portion of the net revenue realized under the Retailers'
4Occupation Tax Act, the Use Tax Act, the Service Use Tax Act,
5and the Service Occupation Tax Act from transactions at places
6of business located within a STAR bond district, including
7that portion of the net revenue that would have been realized
8but for the reduction of the rate to 0% under this amendatory
9Act of the 102nd General Assembly, that is deposited or, under
10this amendatory Act of the 102nd General Assembly, transferred
11into the Local Government Tax Fund and the County and Mass
12Transit District Fund. For the purpose of this Act, "local
13sales taxes" does not include (i) any taxes authorized
14pursuant to the Local Mass Transit District Act or the
15Metro-East Park and Recreation District Act for so long as the
16applicable taxing district does not impose a tax on real
17property, (ii) county school facility and resources occupation
18taxes imposed pursuant to Section 5-1006.7 of the Counties
19Code, or (iii) any taxes authorized under the Flood Prevention
20District Act.
21    "Local sales tax increment" means, except as otherwise
22provided in this Section, with respect to local sales taxes
23administered by the Illinois Department of Revenue, (i) all of
24the local sales tax paid (plus all of the local sales tax that
25would have been paid but for the reduction of the rate to 0%
26under this amendatory Act of the 102nd General Assembly) by

 

 

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1destination users, destination hotels, and entertainment users
2that is in excess of the local sales tax paid (plus all of the
3local sales tax that would have been paid but for the reduction
4of the rate to 0% under this amendatory Act of the 102nd
5General Assembly) by destination users, destination hotels,
6and entertainment users for the same month in the base year, as
7determined by the Illinois Department of Revenue, (ii) in the
8case of a municipality forming a STAR bond district that is
9wholly within the corporate boundaries of the municipality and
10in the case of a municipality and county forming a STAR bond
11district that is only partially within such municipality, that
12portion of the local sales tax paid (plus the local sales tax
13that would have been paid but for the reduction of the rate to
140% under this amendatory Act of the 102nd General Assembly) by
15taxpayers that are not destination users, destination hotels,
16or entertainment users that is in excess of the local sales tax
17paid (plus the local sales tax that would have been paid but
18for the reduction of the rate to 0% under this amendatory Act
19of the 102nd General Assembly) by taxpayers that are not
20destination users, destination hotels, or entertainment users
21for the same month in the base year, as determined by the
22Illinois Department of Revenue, and (iii) in the case of a
23county in which a STAR bond district is formed that is wholly
24within a municipality, that portion of the local sales tax
25paid by taxpayers that are not destination users, destination
26hotels, or entertainment users that is in excess of the local

 

 

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1sales tax paid by taxpayers that are not destination users,
2destination hotels, or entertainment users for the same month
3in the base year, as determined by the Illinois Department of
4Revenue, but only if the corporate authorities of the county
5adopts an ordinance, and files a copy with the Department
6within the same time frames as required for STAR bond
7occupation taxes under Section 31, that designates the taxes
8referenced in this clause (iii) as part of the local sales tax
9increment under this Act. "Local sales tax increment" means,
10with respect to local sales taxes administered by a
11municipality, county, or other unit of local government, that
12portion of the local sales tax that is in excess of the local
13sales tax for the same month in the base year, as determined by
14the respective municipality, county, or other unit of local
15government. If any portion of local sales taxes are, at the
16time of formation of a STAR bond district, already subject to
17tax increment financing under the Tax Increment Allocation
18Redevelopment Act, then the local sales tax increment for such
19portion shall be frozen at the base year established in
20accordance with this Act, and all future incremental increases
21shall be included in the "local sales tax increment" under
22this Act. Any party otherwise entitled to receipt of
23incremental local sales tax revenues through an existing tax
24increment financing district shall be entitled to continue to
25receive such revenues up to the amount frozen in the base year.
26Nothing in this Act shall affect the prior qualification of

 

 

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1existing redevelopment project costs incurred that are
2eligible for reimbursement under the Tax Increment Allocation
3Redevelopment Act. In such event, prior to approving a STAR
4bond district, the political subdivision forming the STAR bond
5district shall take such action as is necessary, including
6amending the existing tax increment financing district
7redevelopment plan, to carry out the provisions of this Act.
8The Illinois Department of Revenue shall allocate the local
9sales tax increment only if the local sales tax is
10administered by the Department. "Local sales tax increment"
11does not include taxes and penalties collected on aviation
12fuel, as defined in Section 3 of the Retailers' Occupation
13Tax, sold on or after December 1, 2019 and through December 31,
142020.
15    "Market study" means a study to determine the ability of
16the proposed STAR bond project to gain market share locally
17and regionally and to remain profitable past the term of
18repayment of STAR bonds.
19    "Master developer" means a developer cooperating with a
20political subdivision to plan, develop, and implement a STAR
21bond project plan for a STAR bond district. Subject to the
22limitations of Section 25, the master developer may work with
23and transfer certain development rights to other developers
24for the purpose of implementing STAR bond project plans and
25achieving the purposes of this Act. A master developer for a
26STAR bond district shall be appointed by a political

 

 

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1subdivision in the resolution establishing the STAR bond
2district, and the master developer must, at the time of
3appointment, own or have control of, through purchase
4agreements, option contracts, or other means, not less than
550% of the acreage within the STAR bond district and the master
6developer or its affiliate must have ownership or control on
7June 1, 2010.
8    "Master development agreement" means an agreement between
9the master developer and the political subdivision to govern a
10STAR bond district and any STAR bond projects.
11    "Municipality" means the city, village, or incorporated
12town in which a proposed STAR bond district is located.
13    "Pledged STAR revenues" means those sales tax and revenues
14and other sources of funds pledged to pay debt service on STAR
15bonds or to pay project costs pursuant to Section 30.
16Notwithstanding any provision to the contrary, the following
17revenues shall not constitute pledged STAR revenues or be
18available to pay principal and interest on STAR bonds: any
19State sales tax increment or local sales tax increment from a
20retail entity initiating operations in a STAR bond district
21while terminating operations at another Illinois location
22within 25 miles of the STAR bond district. For purposes of this
23paragraph, "terminating operations" means a closing of a
24retail operation that is directly related to the opening of
25the same operation or like retail entity owned or operated by
26more than 50% of the original ownership in a STAR bond district

 

 

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1within one year before or after initiating operations in the
2STAR bond district, but it does not mean closing an operation
3for reasons beyond the control of the retail entity, as
4documented by the retail entity, subject to a reasonable
5finding by the municipality (or county if such retail
6operation is not located within a municipality) in which the
7terminated operations were located that the closed location
8contained inadequate space, had become economically obsolete,
9or was no longer a viable location for the retailer or
10serviceman.
11    "Political subdivision" means a municipality or county
12which undertakes to establish a STAR bond district pursuant to
13the provisions of this Act.
14    "Project costs" means and includes the sum total of all
15costs incurred or estimated to be incurred on or following the
16date of establishment of a STAR bond district that are
17reasonable or necessary to implement a STAR bond district plan
18or any STAR bond project plans, or both, including costs
19incurred for public improvements and private improvements that
20serve the public purposes set forth in Section 5 of this Act.
21Such costs include without limitation the following:
22        (a) costs of studies, surveys, development of plans
23    and specifications, formation, implementation, and
24    administration of a STAR bond district, STAR bond district
25    plan, any STAR bond projects, or any STAR bond project
26    plans, including, but not limited to, staff and

 

 

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1    professional service costs for architectural, engineering,
2    legal, financial, planning, or other services, provided
3    however that no charges for professional services may be
4    based on a percentage of the tax increment collected and
5    no contracts for professional services, excluding
6    architectural and engineering services, may be entered
7    into if the terms of the contract extend beyond a period of
8    3 years;
9        (b) property assembly costs, including, but not
10    limited to, acquisition of land and other real property or
11    rights or interests therein, located within the boundaries
12    of a STAR bond district, demolition of buildings, site
13    preparation, site improvements that serve as an engineered
14    barrier addressing ground level or below ground
15    environmental contamination, including, but not limited
16    to, parking lots and other concrete or asphalt barriers,
17    the clearing and grading of land, and importing additional
18    soil and fill materials, or removal of soil and fill
19    materials from the site;
20        (c) subject to paragraph (d), costs of buildings and
21    other vertical improvements that are located within the
22    boundaries of a STAR bond district and owned by a
23    political subdivision or other public entity, including
24    without limitation police and fire stations, educational
25    facilities, and public restrooms and rest areas;
26        (c-1) costs of buildings and other vertical

 

 

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1    improvements that are located within the boundaries of a
2    STAR bond district and owned by a destination user or
3    destination hotel; except that only 2 destination users in
4    a STAR bond district and one destination hotel are
5    eligible to include the cost of those vertical
6    improvements as project costs;
7        (c-5) costs of buildings; rides and attractions, which
8    include carousels, slides, roller coasters, displays,
9    models, towers, works of art, and similar theme and
10    amusement park improvements; and other vertical
11    improvements that are located within the boundaries of a
12    STAR bond district and owned by an entertainment user;
13    except that only one entertainment user in a STAR bond
14    district is eligible to include the cost of those vertical
15    improvements as project costs;
16        (d) costs of the design and construction of
17    infrastructure and public works located within the
18    boundaries of a STAR bond district that are reasonable or
19    necessary to implement a STAR bond district plan or any
20    STAR bond project plans, or both, except that project
21    costs shall not include the cost of constructing a new
22    municipal public building principally used to provide
23    offices, storage space, or conference facilities or
24    vehicle storage, maintenance, or repair for
25    administrative, public safety, or public works personnel
26    and that is not intended to replace an existing public

 

 

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1    building unless the political subdivision makes a
2    reasonable determination in a STAR bond district plan or
3    any STAR bond project plans, supported by information that
4    provides the basis for that determination, that the new
5    municipal building is required to meet an increase in the
6    need for public safety purposes anticipated to result from
7    the implementation of the STAR bond district plan or any
8    STAR bond project plans;
9        (e) costs of the design and construction of the
10    following improvements located outside the boundaries of a
11    STAR bond district, provided that the costs are essential
12    to further the purpose and development of a STAR bond
13    district plan and either (i) part of and connected to
14    sewer, water, or utility service lines that physically
15    connect to the STAR bond district or (ii) significant
16    improvements for adjacent offsite highways, streets,
17    roadways, and interchanges that are approved by the
18    Illinois Department of Transportation. No other cost of
19    infrastructure and public works improvements located
20    outside the boundaries of a STAR bond district may be
21    deemed project costs;
22        (f) costs of job training and retraining projects,
23    including the cost of "welfare to work" programs
24    implemented by businesses located within a STAR bond
25    district;
26        (g) financing costs, including, but not limited to,

 

 

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1    all necessary and incidental expenses related to the
2    issuance of obligations and which may include payment of
3    interest on any obligations issued hereunder including
4    interest accruing during the estimated period of
5    construction of any improvements in a STAR bond district
6    or any STAR bond projects for which such obligations are
7    issued and for not exceeding 36 months thereafter and
8    including reasonable reserves related thereto;
9        (h) to the extent the political subdivision by written
10    agreement accepts and approves the same, all or a portion
11    of a taxing district's capital costs resulting from a STAR
12    bond district or STAR bond projects necessarily incurred
13    or to be incurred within a taxing district in furtherance
14    of the objectives of a STAR bond district plan or STAR bond
15    project plans;
16        (i) interest cost incurred by a developer for project
17    costs related to the acquisition, formation,
18    implementation, development, construction, and
19    administration of a STAR bond district, STAR bond district
20    plan, STAR bond projects, or any STAR bond project plans
21    provided that:
22            (i) payment of such costs in any one year may not
23        exceed 30% of the annual interest costs incurred by
24        the developer with regard to the STAR bond district or
25        any STAR bond projects during that year; and
26            (ii) the total of such interest payments paid

 

 

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1        pursuant to this Act may not exceed 30% of the total
2        cost paid or incurred by the developer for a STAR bond
3        district or STAR bond projects, plus project costs,
4        excluding any property assembly costs incurred by a
5        political subdivision pursuant to this Act;
6        (j) costs of common areas located within the
7    boundaries of a STAR bond district;
8        (k) costs of landscaping and plantings, retaining
9    walls and fences, man-made lakes and ponds, shelters,
10    benches, lighting, and similar amenities located within
11    the boundaries of a STAR bond district;
12        (l) costs of mounted building signs, site monument,
13    and pylon signs located within the boundaries of a STAR
14    bond district; or
15        (m) if included in the STAR bond district plan and
16    approved in writing by the Director, salaries or a portion
17    of salaries for local government employees to the extent
18    the same are directly attributable to the work of such
19    employees on the establishment and management of a STAR
20    bond district or any STAR bond projects.
21    Except as specified in items (a) through (m), "project
22costs" shall not include:
23        (i) the cost of construction of buildings that are
24    privately owned or owned by a municipality and leased to a
25    developer or retail user for non-entertainment retail
26    uses;

 

 

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1        (ii) moving expenses for employees of the businesses
2    locating within the STAR bond district;
3        (iii) property taxes for property located in the STAR
4    bond district;
5        (iv) lobbying costs; and
6        (v) general overhead or administrative costs of the
7    political subdivision that would still have been incurred
8    by the political subdivision if the political subdivision
9    had not established a STAR bond district.
10    "Project development agreement" means any one or more
11agreements, including any amendments thereto, between a master
12developer and any co-developer or subdeveloper in connection
13with a STAR bond project, which project development agreement
14may include the political subdivision as a party.
15    "Projected market area" means any area within the State in
16which a STAR bond district or STAR bond project is projected to
17have a significant fiscal or market impact as determined by
18the Director.
19    "Resolution" means a resolution, order, ordinance, or
20other appropriate form of legislative action of a political
21subdivision or other applicable public entity approved by a
22vote of a majority of a quorum at a meeting of the governing
23body of the political subdivision or applicable public entity.
24    "STAR bond" means a sales tax and revenue bond, note, or
25other obligation payable from pledged STAR revenues and issued
26by a political subdivision, the proceeds of which shall be

 

 

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1used only to pay project costs as defined in this Act.
2    "STAR bond district" means the specific area declared to
3be an eligible area as determined by the political
4subdivision, and approved by the Director, in which the
5political subdivision may develop one or more STAR bond
6projects.
7    "STAR bond district plan" means the preliminary or
8conceptual plan that generally identifies the proposed STAR
9bond project areas and identifies in a general manner the
10buildings, facilities, and improvements to be constructed or
11improved in each STAR bond project area.
12    "STAR bond project" means a project within a STAR bond
13district which is approved pursuant to Section 20.
14    "STAR bond project area" means the geographic area within
15a STAR bond district in which there may be one or more STAR
16bond projects.
17    "STAR bond project plan" means the written plan adopted by
18a political subdivision for the development of a STAR bond
19project in a STAR bond district; the plan may include, but is
20not limited to, (i) project costs incurred prior to the date of
21the STAR bond project plan and estimated future STAR bond
22project costs, (ii) proposed sources of funds to pay those
23costs, (iii) the nature and estimated term of any obligations
24to be issued by the political subdivision to pay those costs,
25(iv) the most recent equalized assessed valuation of the STAR
26bond project area, (v) an estimate of the equalized assessed

 

 

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1valuation of the STAR bond district or applicable project area
2after completion of a STAR bond project, (vi) a general
3description of the types of any known or proposed developers,
4users, or tenants of the STAR bond project or projects
5included in the plan, (vii) a general description of the type,
6structure, and character of the property or facilities to be
7developed or improved, (viii) a description of the general
8land uses to apply to the STAR bond project, and (ix) a general
9description or an estimate of the type, class, and number of
10employees to be employed in the operation of the STAR bond
11project.
12    "State sales tax" means all of the net revenue realized
13under the Retailers' Occupation Tax Act, the Use Tax Act, the
14Service Use Tax Act, and the Service Occupation Tax Act from
15transactions at places of business located within a STAR bond
16district, excluding that portion of the net revenue realized
17under the Retailers' Occupation Tax Act, the Use Tax Act, the
18Service Use Tax Act, and the Service Occupation Tax Act from
19transactions at places of business located within a STAR bond
20district that is deposited into the Local Government Tax Fund
21and the County and Mass Transit District Fund.
22    "State sales tax increment" means (i) 100% of that portion
23of the State sales tax that is in excess of the State sales tax
24for the same month in the base year, as determined by the
25Department of Revenue, from transactions at up to 2
26destination users, one destination hotel, and one

 

 

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1entertainment user located within a STAR bond district, which
2destination users, destination hotel, and entertainment user
3shall be designated by the master developer and approved by
4the political subdivision and the Director in conjunction with
5the applicable STAR bond project approval, and (ii) 25% of
6that portion of the State sales tax that is in excess of the
7State sales tax for the same month in the base year, as
8determined by the Department of Revenue, from all other
9transactions within a STAR bond district. If any portion of
10State sales taxes are, at the time of formation of a STAR bond
11district, already subject to tax increment financing under the
12Tax Increment Allocation Redevelopment Act, then the State
13sales tax increment for such portion shall be frozen at the
14base year established in accordance with this Act, and all
15future incremental increases shall be included in the State
16sales tax increment under this Act. Any party otherwise
17entitled to receipt of incremental State sales tax revenues
18through an existing tax increment financing district shall be
19entitled to continue to receive such revenues up to the amount
20frozen in the base year. Nothing in this Act shall affect the
21prior qualification of existing redevelopment project costs
22incurred that are eligible for reimbursement under the Tax
23Increment Allocation Redevelopment Act. In such event, prior
24to approving a STAR bond district, the political subdivision
25forming the STAR bond district shall take such action as is
26necessary, including amending the existing tax increment

 

 

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1financing district redevelopment plan, to carry out the
2provisions of this Act.
3    "Substantial change" means a change wherein the proposed
4STAR bond project plan differs substantially in size, scope,
5or use from the approved STAR bond district plan or STAR bond
6project plan.
7    "Taxpayer" means an individual, partnership, corporation,
8limited liability company, trust, estate, or other entity that
9is subject to the Illinois Income Tax Act.
10    "Total development costs" means the aggregate public and
11private investment in a STAR bond district, including project
12costs and other direct and indirect costs related to the
13development of the STAR bond district.
14    "Traditional retail use" means the operation of a business
15that derives at least 90% of its annual gross revenue from
16sales at retail, as that phrase is defined by Section 1 of the
17Retailers' Occupation Tax Act, but does not include the
18operations of destination users, entertainment users,
19restaurants, hotels, retail uses within hotels, or any other
20non-retail uses.
21    "Vacant" means that portion of the land in a proposed STAR
22bond district that is not occupied by a building, facility, or
23other vertical improvement.
24(Source: P.A. 101-10, eff. 6-5-19; 101-455, eff. 8-23-19;
25101-604, eff. 12-13-19.)
 

 

 

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1    (50 ILCS 470/31)
2    Sec. 31. STAR bond occupation taxes.
3    (a) If the corporate authorities of a political
4subdivision have established a STAR bond district and have
5elected to impose a tax by ordinance pursuant to subsection
6(b) or (c) of this Section, each year after the date of the
7adoption of the ordinance and until all STAR bond project
8costs and all political subdivision obligations financing the
9STAR bond project costs, if any, have been paid in accordance
10with the STAR bond project plans, but in no event longer than
11the maximum maturity date of the last of the STAR bonds issued
12for projects in the STAR bond district, all amounts generated
13by the retailers' occupation tax and service occupation tax
14shall be collected and the tax shall be enforced by the
15Department of Revenue in the same manner as all retailers'
16occupation taxes and service occupation taxes imposed in the
17political subdivision imposing the tax. The corporate
18authorities of the political subdivision shall deposit the
19proceeds of the taxes imposed under subsections (b) and (c)
20into either (i) a special fund held by the corporate
21authorities of the political subdivision called the STAR Bonds
22Tax Allocation Fund for the purpose of paying STAR bond
23project costs and obligations incurred in the payment of those
24costs if such taxes are designated as pledged STAR revenues by
25resolution or ordinance of the political subdivision or (ii)
26the political subdivision's general corporate fund if such

 

 

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1taxes are not designated as pledged STAR revenues by
2resolution or ordinance.
3    The tax imposed under this Section by a municipality may
4be imposed only on the portion of a STAR bond district that is
5within the boundaries of the municipality. For any part of a
6STAR bond district that lies outside of the boundaries of that
7municipality, the municipality in which the other part of the
8STAR bond district lies (or the county, in cases where a
9portion of the STAR bond district lies in the unincorporated
10area of a county) is authorized to impose the tax under this
11Section on that part of the STAR bond district.
12    (b) The corporate authorities of a political subdivision
13that has established a STAR bond district under this Act may,
14by ordinance or resolution, impose a STAR Bond Retailers'
15Occupation Tax upon all persons engaged in the business of
16selling tangible personal property, other than an item of
17tangible personal property titled or registered with an agency
18of this State's government, at retail in the STAR bond
19district at a rate not to exceed 1% of the gross receipts from
20the sales made in the course of that business, to be imposed
21only in 0.25% increments. The tax may not be imposed on
22tangible personal property taxed at the 1% rate under the
23Retailers' Occupation Tax Act (or at the 0% rate imposed under
24this amendatory Act of the 102nd General Assembly). Beginning
25December 1, 2019 and through December 31, 2020, this tax is not
26imposed on sales of aviation fuel unless the tax revenue is

 

 

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1expended for airport-related purposes. If the District does
2not have an airport-related purpose to which aviation fuel tax
3revenue is dedicated, then aviation fuel is excluded from the
4tax. The municipality must comply with the certification
5requirements for airport-related purposes under Section 2-22
6of the Retailers' Occupation Tax Act. For purposes of this
7Act, "airport-related purposes" has the meaning ascribed in
8Section 6z-20.2 of the State Finance Act. Beginning January 1,
92021, this tax is not imposed on sales of aviation fuel for so
10long as the revenue use requirements of 49 U.S.C. 47107(b) and
1149 U.S.C. 47133 are binding on the District.
12    The tax imposed under this subsection and all civil
13penalties that may be assessed as an incident thereof shall be
14collected and enforced by the Department of Revenue. The
15certificate of registration that is issued by the Department
16to a retailer under the Retailers' Occupation Tax Act shall
17permit the retailer to engage in a business that is taxable
18under any ordinance or resolution enacted pursuant to this
19subsection without registering separately with the Department
20under such ordinance or resolution or under this subsection.
21The Department of Revenue shall have full power to administer
22and enforce this subsection, to collect all taxes and
23penalties due under this subsection in the manner hereinafter
24provided, and to determine all rights to credit memoranda
25arising on account of the erroneous payment of tax or penalty
26under this subsection. In the administration of, and

 

 

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1compliance with, this subsection, the Department and persons
2who are subject to this subsection shall have the same rights,
3remedies, privileges, immunities, powers, and duties, and be
4subject to the same conditions, restrictions, limitations,
5penalties, exclusions, exemptions, and definitions of terms
6and employ the same modes of procedure, as are prescribed in
7Sections 1, 1a through 1o, 2 through 2-65 (in respect to all
8provisions therein other than the State rate of tax), 2c
9through 2h, 3 (except as to the disposition of taxes and
10penalties collected, and except that the retailer's discount
11is not allowed for taxes paid on aviation fuel that are subject
12to the revenue use requirements of 49 U.S.C. 47107(b) and 49
13U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k,
145l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the
15Retailers' Occupation Tax Act and all provisions of the
16Uniform Penalty and Interest Act, as fully as if those
17provisions were set forth herein.
18    If a tax is imposed under this subsection (b), a tax shall
19also be imposed under subsection (c) of this Section.
20    (c) If a tax has been imposed under subsection (b), a STAR
21Bond Service Occupation Tax shall also be imposed upon all
22persons engaged, in the STAR bond district, in the business of
23making sales of service, who, as an incident to making those
24sales of service, transfer tangible personal property within
25the STAR bond district, either in the form of tangible
26personal property or in the form of real estate as an incident

 

 

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1to a sale of service. The tax shall be imposed at the same rate
2as the tax imposed in subsection (b) and shall not exceed 1% of
3the selling price of tangible personal property so transferred
4within the STAR bond district, to be imposed only in 0.25%
5increments. The tax may not be imposed on tangible personal
6property taxed at the 1% rate under the Service Occupation Tax
7Act (or at the 0% rate imposed under this amendatory Act of the
8102nd General Assembly). Beginning December 1, 2019 and
9through December 31, 2020, this tax is not imposed on sales of
10aviation fuel unless the tax revenue is expended for
11airport-related purposes. If the District does not have an
12airport-related purpose to which aviation fuel tax revenue is
13dedicated, then aviation fuel is excluded from the tax. The
14municipality must comply with the certification requirements
15for airport-related purposes under Section 2-22 of the
16Retailers' Occupation Tax Act. For purposes of this Act,
17"airport-related purposes" has the meaning ascribed in Section
186z-20.2 of the State Finance Act. Beginning January 1, 2021,
19this tax is not imposed on sales of aviation fuel for so long
20as the revenue use requirements of 49 U.S.C. 47107(b) and 49
21U.S.C. 47133 are binding on the District.
22    The tax imposed under this subsection and all civil
23penalties that may be assessed as an incident thereof shall be
24collected and enforced by the Department of Revenue. The
25certificate of registration that is issued by the Department
26to a retailer under the Retailers' Occupation Tax Act or under

 

 

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1the Service Occupation Tax Act shall permit the registrant to
2engage in a business that is taxable under any ordinance or
3resolution enacted pursuant to this subsection without
4registering separately with the Department under that
5ordinance or resolution or under this subsection. The
6Department of Revenue shall have full power to administer and
7enforce this subsection, to collect all taxes and penalties
8due under this subsection, to dispose of taxes and penalties
9so collected in the manner hereinafter provided, and to
10determine all rights to credit memoranda arising on account of
11the erroneous payment of tax or penalty under this subsection.
12In the administration of, and compliance with this subsection,
13the Department and persons who are subject to this subsection
14shall have the same rights, remedies, privileges, immunities,
15powers, and duties, and be subject to the same conditions,
16restrictions, limitations, penalties, exclusions, exemptions,
17and definitions of terms and employ the same modes of
18procedure as are prescribed in Sections 2, 2a through 2d, 3
19through 3-50 (in respect to all provisions therein other than
20the State rate of tax), 4 (except that the reference to the
21State shall be to the STAR bond district), 5, 7, 8 (except that
22the jurisdiction to which the tax shall be a debt to the extent
23indicated in that Section 8 shall be the political
24subdivision), 9 (except as to the disposition of taxes and
25penalties collected, and except that the returned merchandise
26credit for this tax may not be taken against any State tax, and

 

 

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1except that the retailer's discount is not allowed for taxes
2paid on aviation fuel that are subject to the revenue use
3requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
411, 12 (except the reference therein to Section 2b of the
5Retailers' Occupation Tax Act), 13 (except that any reference
6to the State shall mean the political subdivision), the first
7paragraph of Section 15, and Sections 16, 17, 18, 19 and 20 of
8the Service Occupation Tax Act and all provisions of the
9Uniform Penalty and Interest Act, as fully as if those
10provisions were set forth herein.
11    If a tax is imposed under this subsection (c), a tax shall
12also be imposed under subsection (b) of this Section.
13    (d) Persons subject to any tax imposed under this Section
14may reimburse themselves for their seller's tax liability
15under this Section by separately stating the tax as an
16additional charge, which charge may be stated in combination,
17in a single amount, with State taxes that sellers are required
18to collect under the Use Tax Act, in accordance with such
19bracket schedules as the Department may prescribe.
20    Whenever the Department determines that a refund should be
21made under this Section to a claimant instead of issuing a
22credit memorandum, the Department shall notify the State
23Comptroller, who shall cause the order to be drawn for the
24amount specified and to the person named in the notification
25from the Department. The refund shall be paid by the State
26Treasurer out of the STAR Bond Retailers' Occupation Tax Fund

 

 

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1or the Local Government Aviation Trust Fund, as appropriate.
2    Except as otherwise provided in this paragraph, the
3Department shall immediately pay over to the State Treasurer,
4ex officio, as trustee, all taxes, penalties, and interest
5collected under this Section for deposit into the STAR Bond
6Retailers' Occupation Tax Fund. Taxes and penalties collected
7on aviation fuel sold on or after December 1, 2019, shall be
8immediately paid over by the Department to the State
9Treasurer, ex officio, as trustee, for deposit into the Local
10Government Aviation Trust Fund. The Department shall only pay
11moneys into the Local Government Aviation Trust Fund under
12this Section for so long as the revenue use requirements of 49
13U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
14District. On or before the 25th day of each calendar month, the
15Department shall prepare and certify to the Comptroller the
16disbursement of stated sums of money to named political
17subdivisions from the STAR Bond Retailers' Occupation Tax
18Fund, the political subdivisions to be those from which
19retailers have paid taxes or penalties under this Section to
20the Department during the second preceding calendar month. The
21amount to be paid to each political subdivision shall be the
22amount (not including credit memoranda and not including taxes
23and penalties collected on aviation fuel sold on or after
24December 1, 2019) collected under this Section during the
25second preceding calendar month by the Department plus an
26amount the Department determines is necessary to offset any

 

 

SB0157 Enrolled- 364 -LRB102 10128 HLH 16591 b

1amounts that were erroneously paid to a different taxing body,
2and not including an amount equal to the amount of refunds made
3during the second preceding calendar month by the Department,
4less 3% of that amount, which shall be deposited into the Tax
5Compliance and Administration Fund and shall be used by the
6Department, subject to appropriation, to cover the costs of
7the Department in administering and enforcing the provisions
8of this Section, on behalf of such political subdivision, and
9not including any amount that the Department determines is
10necessary to offset any amounts that were payable to a
11different taxing body but were erroneously paid to the
12political subdivision. Within 10 days after receipt by the
13Comptroller of the disbursement certification to the political
14subdivisions provided for in this Section to be given to the
15Comptroller by the Department, the Comptroller shall cause the
16orders to be drawn for the respective amounts in accordance
17with the directions contained in the certification. The
18proceeds of the tax paid to political subdivisions under this
19Section shall be deposited into either (i) the STAR Bonds Tax
20Allocation Fund by the political subdivision if the political
21subdivision has designated them as pledged STAR revenues by
22resolution or ordinance or (ii) the political subdivision's
23general corporate fund if the political subdivision has not
24designated them as pledged STAR revenues.
25    An ordinance or resolution imposing or discontinuing the
26tax under this Section or effecting a change in the rate

 

 

SB0157 Enrolled- 365 -LRB102 10128 HLH 16591 b

1thereof shall either (i) be adopted and a certified copy
2thereof filed with the Department on or before the first day of
3April, whereupon the Department, if all other requirements of
4this Section are met, shall proceed to administer and enforce
5this Section as of the first day of July next following the
6adoption and filing; or (ii) be adopted and a certified copy
7thereof filed with the Department on or before the first day of
8October, whereupon, if all other requirements of this Section
9are met, the Department shall proceed to administer and
10enforce this Section as of the first day of January next
11following the adoption and filing.
12    The Department of Revenue shall not administer or enforce
13an ordinance imposing, discontinuing, or changing the rate of
14the tax under this Section until the political subdivision
15also provides, in the manner prescribed by the Department, the
16boundaries of the STAR bond district and each address in the
17STAR bond district in such a way that the Department can
18determine by its address whether a business is located in the
19STAR bond district. The political subdivision must provide
20this boundary and address information to the Department on or
21before April 1 for administration and enforcement of the tax
22under this Section by the Department beginning on the
23following July 1 and on or before October 1 for administration
24and enforcement of the tax under this Section by the
25Department beginning on the following January 1. The
26Department of Revenue shall not administer or enforce any

 

 

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1change made to the boundaries of a STAR bond district or any
2address change, addition, or deletion until the political
3subdivision reports the boundary change or address change,
4addition, or deletion to the Department in the manner
5prescribed by the Department. The political subdivision must
6provide this boundary change or address change, addition, or
7deletion information to the Department on or before April 1
8for administration and enforcement by the Department of the
9change, addition, or deletion beginning on the following July
101 and on or before October 1 for administration and
11enforcement by the Department of the change, addition, or
12deletion beginning on the following January 1. The retailers
13in the STAR bond district shall be responsible for charging
14the tax imposed under this Section. If a retailer is
15incorrectly included or excluded from the list of those
16required to collect the tax under this Section, both the
17Department of Revenue and the retailer shall be held harmless
18if they reasonably relied on information provided by the
19political subdivision.
20    A political subdivision that imposes the tax under this
21Section must submit to the Department of Revenue any other
22information as the Department may require that is necessary
23for the administration and enforcement of the tax.
24    When certifying the amount of a monthly disbursement to a
25political subdivision under this Section, the Department shall
26increase or decrease the amount by an amount necessary to

 

 

SB0157 Enrolled- 367 -LRB102 10128 HLH 16591 b

1offset any misallocation of previous disbursements. The offset
2amount shall be the amount erroneously disbursed within the
3previous 6 months from the time a misallocation is discovered.
4    Nothing in this Section shall be construed to authorize
5the political subdivision to impose a tax upon the privilege
6of engaging in any business which under the Constitution of
7the United States may not be made the subject of taxation by
8this State.
9    (e) When STAR bond project costs, including, without
10limitation, all political subdivision obligations financing
11STAR bond project costs, have been paid, any surplus funds
12then remaining in the STAR Bonds Tax Allocation Fund shall be
13distributed to the treasurer of the political subdivision for
14deposit into the political subdivision's general corporate
15fund. Upon payment of all STAR bond project costs and
16retirement of obligations, but in no event later than the
17maximum maturity date of the last of the STAR bonds issued in
18the STAR bond district, the political subdivision shall adopt
19an ordinance immediately rescinding the taxes imposed pursuant
20to this Section and file a certified copy of the ordinance with
21the Department in the form and manner as described in this
22Section.
23(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19;
24101-604, eff. 12-13-19.)
 
25    Section 60-40. The Counties Code is amended by changing

 

 

SB0157 Enrolled- 368 -LRB102 10128 HLH 16591 b

1Sections 5-1006, 5-1006.5, 5-1006.7, and 5-1007 as follows:
 
2    (55 ILCS 5/5-1006)  (from Ch. 34, par. 5-1006)
3    Sec. 5-1006. Home Rule County Retailers' Occupation Tax
4Law. Any county that is a home rule unit may impose a tax upon
5all persons engaged in the business of selling tangible
6personal property, other than an item of tangible personal
7property titled or registered with an agency of this State's
8government, at retail in the county on the gross receipts from
9such sales made in the course of their business. If imposed,
10this tax shall only be imposed in 1/4% increments. On and after
11September 1, 1991, this additional tax may not be imposed on
12tangible personal property taxed at the 1% rate under the
13Retailers' Occupation Tax Act (or at the 0% rate imposed under
14this amendatory Act of the 102nd General Assembly). Beginning
15December 1, 2019, this tax is not imposed on sales of aviation
16fuel unless the tax revenue is expended for airport-related
17purposes. If the county does not have an airport-related
18purpose to which it dedicates aviation fuel tax revenue, then
19aviation fuel is excluded from the tax. The county must comply
20with the certification requirements for airport-related
21purposes under Section 2-22 of the Retailers' Occupation Tax
22Act. For purposes of this Section, "airport-related purposes"
23has the meaning ascribed in Section 6z-20.2 of the State
24Finance Act. This exclusion for aviation fuel only applies for
25so long as the revenue use requirements of 49 U.S.C. 47107(b)

 

 

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1and 49 U.S.C. 47133 are binding on the county. The changes made
2to this Section by this amendatory Act of the 101st General
3Assembly are a denial and limitation of home rule powers and
4functions under subsection (g) of Section 6 of Article VII of
5the Illinois Constitution. The tax imposed by a home rule
6county pursuant to this Section and all civil penalties that
7may be assessed as an incident thereof shall be collected and
8enforced by the State Department of Revenue. The certificate
9of registration that is issued by the Department to a retailer
10under the Retailers' Occupation Tax Act shall permit the
11retailer to engage in a business that is taxable under any
12ordinance or resolution enacted pursuant to this Section
13without registering separately with the Department under such
14ordinance or resolution or under this Section. The Department
15shall have full power to administer and enforce this Section;
16to collect all taxes and penalties due hereunder; to dispose
17of taxes and penalties so collected in the manner hereinafter
18provided; and to determine all rights to credit memoranda
19arising on account of the erroneous payment of tax or penalty
20hereunder. In the administration of, and compliance with, this
21Section, the Department and persons who are subject to this
22Section shall have the same rights, remedies, privileges,
23immunities, powers and duties, and be subject to the same
24conditions, restrictions, limitations, penalties and
25definitions of terms, and employ the same modes of procedure,
26as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j,

 

 

SB0157 Enrolled- 370 -LRB102 10128 HLH 16591 b

11k, 1m, 1n, 2 through 2-65 (in respect to all provisions
2therein other than the State rate of tax), 3 (except as to the
3disposition of taxes and penalties collected, and except that
4the retailer's discount is not allowed for taxes paid on
5aviation fuel that are subject to the revenue use requirements
6of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
75d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
810, 11, 12 and 13 of the Retailers' Occupation Tax Act and
9Section 3-7 of the Uniform Penalty and Interest Act, as fully
10as if those provisions were set forth herein.
11    No tax may be imposed by a home rule county pursuant to
12this Section unless the county also imposes a tax at the same
13rate pursuant to Section 5-1007.
14    Persons subject to any tax imposed pursuant to the
15authority granted in this Section may reimburse themselves for
16their seller's tax liability hereunder by separately stating
17such tax as an additional charge, which charge may be stated in
18combination, in a single amount, with State tax which sellers
19are required to collect under the Use Tax Act, pursuant to such
20bracket schedules as the Department may prescribe.
21    Whenever the Department determines that a refund should be
22made under this Section to a claimant instead of issuing a
23credit memorandum, the Department shall notify the State
24Comptroller, who shall cause the order to be drawn for the
25amount specified and to the person named in the notification
26from the Department. The refund shall be paid by the State

 

 

SB0157 Enrolled- 371 -LRB102 10128 HLH 16591 b

1Treasurer out of the home rule county retailers' occupation
2tax fund or the Local Government Aviation Trust Fund, as
3appropriate.
4    Except as otherwise provided in this paragraph, the
5Department shall forthwith pay over to the State Treasurer, ex
6officio, as trustee, all taxes and penalties collected
7hereunder for deposit into the Home Rule County Retailers'
8Occupation Tax Fund. Taxes and penalties collected on aviation
9fuel sold on or after December 1, 2019, shall be immediately
10paid over by the Department to the State Treasurer, ex
11officio, as trustee, for deposit into the Local Government
12Aviation Trust Fund. The Department shall only pay moneys into
13the Local Government Aviation Trust Fund under this Section
14for so long as the revenue use requirements of 49 U.S.C.
1547107(b) and 49 U.S.C. 47133 are binding on the county.
16    As soon as possible after the first day of each month,
17beginning January 1, 2011, upon certification of the
18Department of Revenue, the Comptroller shall order
19transferred, and the Treasurer shall transfer, to the STAR
20Bonds Revenue Fund the local sales tax increment, as defined
21in the Innovation Development and Economy Act, collected under
22this Section during the second preceding calendar month for
23sales within a STAR bond district.
24    After the monthly transfer to the STAR Bonds Revenue Fund,
25on or before the 25th day of each calendar month, the
26Department shall prepare and certify to the Comptroller the

 

 

SB0157 Enrolled- 372 -LRB102 10128 HLH 16591 b

1disbursement of stated sums of money to named counties, the
2counties to be those from which retailers have paid taxes or
3penalties hereunder to the Department during the second
4preceding calendar month. The amount to be paid to each county
5shall be the amount (not including credit memoranda and not
6including taxes and penalties collected on aviation fuel sold
7on or after December 1, 2019) collected hereunder during the
8second preceding calendar month by the Department plus an
9amount the Department determines is necessary to offset any
10amounts that were erroneously paid to a different taxing body,
11and not including an amount equal to the amount of refunds made
12during the second preceding calendar month by the Department
13on behalf of such county, and not including any amount which
14the Department determines is necessary to offset any amounts
15which were payable to a different taxing body but were
16erroneously paid to the county, and not including any amounts
17that are transferred to the STAR Bonds Revenue Fund, less 1.5%
18of the remainder, which the Department shall transfer into the
19Tax Compliance and Administration Fund. The Department, at the
20time of each monthly disbursement to the counties, shall
21prepare and certify to the State Comptroller the amount to be
22transferred into the Tax Compliance and Administration Fund
23under this Section. Within 10 days after receipt, by the
24Comptroller, of the disbursement certification to the counties
25and the Tax Compliance and Administration Fund provided for in
26this Section to be given to the Comptroller by the Department,

 

 

SB0157 Enrolled- 373 -LRB102 10128 HLH 16591 b

1the Comptroller shall cause the orders to be drawn for the
2respective amounts in accordance with the directions contained
3in the certification.
4    In addition to the disbursement required by the preceding
5paragraph, an allocation shall be made in March of each year to
6each county that received more than $500,000 in disbursements
7under the preceding paragraph in the preceding calendar year.
8The allocation shall be in an amount equal to the average
9monthly distribution made to each such county under the
10preceding paragraph during the preceding calendar year
11(excluding the 2 months of highest receipts). The distribution
12made in March of each year subsequent to the year in which an
13allocation was made pursuant to this paragraph and the
14preceding paragraph shall be reduced by the amount allocated
15and disbursed under this paragraph in the preceding calendar
16year. The Department shall prepare and certify to the
17Comptroller for disbursement the allocations made in
18accordance with this paragraph.
19    For the purpose of determining the local governmental unit
20whose tax is applicable, a retail sale by a producer of coal or
21other mineral mined in Illinois is a sale at retail at the
22place where the coal or other mineral mined in Illinois is
23extracted from the earth. This paragraph does not apply to
24coal or other mineral when it is delivered or shipped by the
25seller to the purchaser at a point outside Illinois so that the
26sale is exempt under the United States Constitution as a sale

 

 

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1in interstate or foreign commerce.
2    Nothing in this Section shall be construed to authorize a
3county to impose a tax upon the privilege of engaging in any
4business which under the Constitution of the United States may
5not be made the subject of taxation by this State.
6    An ordinance or resolution imposing or discontinuing a tax
7hereunder or effecting a change in the rate thereof shall be
8adopted and a certified copy thereof filed with the Department
9on or before the first day of June, whereupon the Department
10shall proceed to administer and enforce this Section as of the
11first day of September next following such adoption and
12filing. Beginning January 1, 1992, an ordinance or resolution
13imposing or discontinuing the tax hereunder or effecting a
14change in the rate thereof shall be adopted and a certified
15copy thereof filed with the Department on or before the first
16day of July, whereupon the Department shall proceed to
17administer and enforce this Section as of the first day of
18October next following such adoption and filing. Beginning
19January 1, 1993, an ordinance or resolution imposing or
20discontinuing the tax hereunder or effecting a change in the
21rate thereof shall be adopted and a certified copy thereof
22filed with the Department on or before the first day of
23October, whereupon the Department shall proceed to administer
24and enforce this Section as of the first day of January next
25following such adoption and filing. Beginning April 1, 1998,
26an ordinance or resolution imposing or discontinuing the tax

 

 

SB0157 Enrolled- 375 -LRB102 10128 HLH 16591 b

1hereunder or effecting a change in the rate thereof shall
2either (i) be adopted and a certified copy thereof filed with
3the Department on or before the first day of April, whereupon
4the Department shall proceed to administer and enforce this
5Section as of the first day of July next following the adoption
6and filing; or (ii) be adopted and a certified copy thereof
7filed with the Department on or before the first day of
8October, whereupon the Department shall proceed to administer
9and enforce this Section as of the first day of January next
10following the adoption and filing.
11    When certifying the amount of a monthly disbursement to a
12county under this Section, the Department shall increase or
13decrease such amount by an amount necessary to offset any
14misallocation of previous disbursements. The offset amount
15shall be the amount erroneously disbursed within the previous
166 months from the time a misallocation is discovered.
17    This Section shall be known and may be cited as the Home
18Rule County Retailers' Occupation Tax Law.
19(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
20100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
217-12-19; 101-604, eff. 12-13-19.)
 
22    (55 ILCS 5/5-1006.5)
23    Sec. 5-1006.5. Special County Retailers' Occupation Tax
24For Public Safety, Public Facilities, Mental Health, Substance
25Abuse, or Transportation.

 

 

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1    (a) The county board of any county may impose a tax upon
2all persons engaged in the business of selling tangible
3personal property, other than personal property titled or
4registered with an agency of this State's government, at
5retail in the county on the gross receipts from the sales made
6in the course of business to provide revenue to be used
7exclusively for public safety, public facility, mental health,
8substance abuse, or transportation purposes in that county
9(except as otherwise provided in this Section), if a
10proposition for the tax has been submitted to the electors of
11that county and approved by a majority of those voting on the
12question. If imposed, this tax shall be imposed only in
13one-quarter percent increments. By resolution, the county
14board may order the proposition to be submitted at any
15election. If the tax is imposed for transportation purposes
16for expenditures for public highways or as authorized under
17the Illinois Highway Code, the county board must publish
18notice of the existence of its long-range highway
19transportation plan as required or described in Section 5-301
20of the Illinois Highway Code and must make the plan publicly
21available prior to approval of the ordinance or resolution
22imposing the tax. If the tax is imposed for transportation
23purposes for expenditures for passenger rail transportation,
24the county board must publish notice of the existence of its
25long-range passenger rail transportation plan and must make
26the plan publicly available prior to approval of the ordinance

 

 

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1or resolution imposing the tax.
2    If a tax is imposed for public facilities purposes, then
3the name of the project may be included in the proposition at
4the discretion of the county board as determined in the
5enabling resolution. For example, the "XXX Nursing Home" or
6the "YYY Museum".
7    The county clerk shall certify the question to the proper
8election authority, who shall submit the proposition at an
9election in accordance with the general election law.
10        (1) The proposition for public safety purposes shall
11    be in substantially the following form:
12        "To pay for public safety purposes, shall (name of
13    county) be authorized to impose an increase on its share
14    of local sales taxes by (insert rate)?"
15        As additional information on the ballot below the
16    question shall appear the following:
17        "This would mean that a consumer would pay an
18    additional (insert amount) in sales tax for every $100 of
19    tangible personal property bought at retail."
20        The county board may also opt to establish a sunset
21    provision at which time the additional sales tax would
22    cease being collected, if not terminated earlier by a vote
23    of the county board. If the county board votes to include a
24    sunset provision, the proposition for public safety
25    purposes shall be in substantially the following form:
26        "To pay for public safety purposes, shall (name of

 

 

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1    county) be authorized to impose an increase on its share
2    of local sales taxes by (insert rate) for a period not to
3    exceed (insert number of years)?"
4        As additional information on the ballot below the
5    question shall appear the following:
6        "This would mean that a consumer would pay an
7    additional (insert amount) in sales tax for every $100 of
8    tangible personal property bought at retail. If imposed,
9    the additional tax would cease being collected at the end
10    of (insert number of years), if not terminated earlier by
11    a vote of the county board."
12        For the purposes of the paragraph, "public safety
13    purposes" means crime prevention, detention, fire
14    fighting, police, medical, ambulance, or other emergency
15    services.
16        Votes shall be recorded as "Yes" or "No".
17        Beginning on the January 1 or July 1, whichever is
18    first, that occurs not less than 30 days after May 31, 2015
19    (the effective date of Public Act 99-4), Adams County may
20    impose a public safety retailers' occupation tax and
21    service occupation tax at the rate of 0.25%, as provided
22    in the referendum approved by the voters on April 7, 2015,
23    notwithstanding the omission of the additional information
24    that is otherwise required to be printed on the ballot
25    below the question pursuant to this item (1).
26        (2) The proposition for transportation purposes shall

 

 

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1    be in substantially the following form:
2        "To pay for improvements to roads and other
3    transportation purposes, shall (name of county) be
4    authorized to impose an increase on its share of local
5    sales taxes by (insert rate)?"
6        As additional information on the ballot below the
7    question shall appear the following:
8        "This would mean that a consumer would pay an
9    additional (insert amount) in sales tax for every $100 of
10    tangible personal property bought at retail."
11        The county board may also opt to establish a sunset
12    provision at which time the additional sales tax would
13    cease being collected, if not terminated earlier by a vote
14    of the county board. If the county board votes to include a
15    sunset provision, the proposition for transportation
16    purposes shall be in substantially the following form:
17        "To pay for road improvements and other transportation
18    purposes, shall (name of county) be authorized to impose
19    an increase on its share of local sales taxes by (insert
20    rate) for a period not to exceed (insert number of
21    years)?"
22        As additional information on the ballot below the
23    question shall appear the following:
24        "This would mean that a consumer would pay an
25    additional (insert amount) in sales tax for every $100 of
26    tangible personal property bought at retail. If imposed,

 

 

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1    the additional tax would cease being collected at the end
2    of (insert number of years), if not terminated earlier by
3    a vote of the county board."
4        For the purposes of this paragraph, transportation
5    purposes means construction, maintenance, operation, and
6    improvement of public highways, any other purpose for
7    which a county may expend funds under the Illinois Highway
8    Code, and passenger rail transportation.
9        The votes shall be recorded as "Yes" or "No".
10        (3) The proposition for public facilities purposes
11    shall be in substantially the following form:
12        "To pay for public facilities purposes, shall (name of
13    county) be authorized to impose an increase on its share
14    of local sales taxes by (insert rate)?"
15        As additional information on the ballot below the
16    question shall appear the following:
17        "This would mean that a consumer would pay an
18    additional (insert amount) in sales tax for every $100 of
19    tangible personal property bought at retail."
20        The county board may also opt to establish a sunset
21    provision at which time the additional sales tax would
22    cease being collected, if not terminated earlier by a vote
23    of the county board. If the county board votes to include a
24    sunset provision, the proposition for public facilities
25    purposes shall be in substantially the following form:
26        "To pay for public facilities purposes, shall (name of

 

 

SB0157 Enrolled- 381 -LRB102 10128 HLH 16591 b

1    county) be authorized to impose an increase on its share
2    of local sales taxes by (insert rate) for a period not to
3    exceed (insert number of years)?"
4        As additional information on the ballot below the
5    question shall appear the following:
6        "This would mean that a consumer would pay an
7    additional (insert amount) in sales tax for every $100 of
8    tangible personal property bought at retail. If imposed,
9    the additional tax would cease being collected at the end
10    of (insert number of years), if not terminated earlier by
11    a vote of the county board."
12        For purposes of this Section, "public facilities
13    purposes" means the acquisition, development,
14    construction, reconstruction, rehabilitation,
15    improvement, financing, architectural planning, and
16    installation of capital facilities consisting of
17    buildings, structures, and durable equipment and for the
18    acquisition and improvement of real property and interest
19    in real property required, or expected to be required, in
20    connection with the public facilities, for use by the
21    county for the furnishing of governmental services to its
22    citizens, including, but not limited to, museums and
23    nursing homes.
24        The votes shall be recorded as "Yes" or "No".
25        (4) The proposition for mental health purposes shall
26    be in substantially the following form:

 

 

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1        "To pay for mental health purposes, shall (name of
2    county) be authorized to impose an increase on its share
3    of local sales taxes by (insert rate)?"
4        As additional information on the ballot below the
5    question shall appear the following:
6        "This would mean that a consumer would pay an
7    additional (insert amount) in sales tax for every $100 of
8    tangible personal property bought at retail."
9        The county board may also opt to establish a sunset
10    provision at which time the additional sales tax would
11    cease being collected, if not terminated earlier by a vote
12    of the county board. If the county board votes to include a
13    sunset provision, the proposition for public facilities
14    purposes shall be in substantially the following form:
15        "To pay for mental health purposes, shall (name of
16    county) be authorized to impose an increase on its share
17    of local sales taxes by (insert rate) for a period not to
18    exceed (insert number of years)?"
19        As additional information on the ballot below the
20    question shall appear the following:
21        "This would mean that a consumer would pay an
22    additional (insert amount) in sales tax for every $100 of
23    tangible personal property bought at retail. If imposed,
24    the additional tax would cease being collected at the end
25    of (insert number of years), if not terminated earlier by
26    a vote of the county board."

 

 

SB0157 Enrolled- 383 -LRB102 10128 HLH 16591 b

1        The votes shall be recorded as "Yes" or "No".
2        (5) The proposition for substance abuse purposes shall
3    be in substantially the following form:
4        "To pay for substance abuse purposes, shall (name of
5    county) be authorized to impose an increase on its share
6    of local sales taxes by (insert rate)?"
7        As additional information on the ballot below the
8    question shall appear the following:
9        "This would mean that a consumer would pay an
10    additional (insert amount) in sales tax for every $100 of
11    tangible personal property bought at retail."
12        The county board may also opt to establish a sunset
13    provision at which time the additional sales tax would
14    cease being collected, if not terminated earlier by a vote
15    of the county board. If the county board votes to include a
16    sunset provision, the proposition for public facilities
17    purposes shall be in substantially the following form:
18        "To pay for substance abuse purposes, shall (name of
19    county) be authorized to impose an increase on its share
20    of local sales taxes by (insert rate) for a period not to
21    exceed (insert number of years)?"
22        As additional information on the ballot below the
23    question shall appear the following:
24        "This would mean that a consumer would pay an
25    additional (insert amount) in sales tax for every $100 of
26    tangible personal property bought at retail. If imposed,

 

 

SB0157 Enrolled- 384 -LRB102 10128 HLH 16591 b

1    the additional tax would cease being collected at the end
2    of (insert number of years), if not terminated earlier by
3    a vote of the county board."
4        The votes shall be recorded as "Yes" or "No".
5    If a majority of the electors voting on the proposition
6vote in favor of it, the county may impose the tax. A county
7may not submit more than one proposition authorized by this
8Section to the electors at any one time.
9    This additional tax may not be imposed on tangible
10personal property taxed at the 1% rate under the Retailers'
11Occupation Tax Act (or at the 0% rate imposed under this
12amendatory Act of the 102nd General Assembly). Beginning
13December 1, 2019 and through December 31, 2020, this tax is not
14imposed on sales of aviation fuel unless the tax revenue is
15expended for airport-related purposes. If the county does not
16have an airport-related purpose to which it dedicates aviation
17fuel tax revenue, then aviation fuel is excluded from the tax.
18The county must comply with the certification requirements for
19airport-related purposes under Section 2-22 of the Retailers'
20Occupation Tax Act. For purposes of this Section,
21"airport-related purposes" has the meaning ascribed in Section
226z-20.2 of the State Finance Act. Beginning January 1, 2021,
23this tax is not imposed on sales of aviation fuel for so long
24as the revenue use requirements of 49 U.S.C. 47107(b) and 49
25U.S.C. 47133 are binding on the county. The tax imposed by a
26county under this Section and all civil penalties that may be

 

 

SB0157 Enrolled- 385 -LRB102 10128 HLH 16591 b

1assessed as an incident of the tax shall be collected and
2enforced by the Illinois Department of Revenue and deposited
3into a special fund created for that purpose. The certificate
4of registration that is issued by the Department to a retailer
5under the Retailers' Occupation Tax Act shall permit the
6retailer to engage in a business that is taxable without
7registering separately with the Department under an ordinance
8or resolution under this Section. The Department has full
9power to administer and enforce this Section, to collect all
10taxes and penalties due under this Section, to dispose of
11taxes and penalties so collected in the manner provided in
12this Section, and to determine all rights to credit memoranda
13arising on account of the erroneous payment of a tax or penalty
14under this Section. In the administration of and compliance
15with this Section, the Department and persons who are subject
16to this Section shall (i) have the same rights, remedies,
17privileges, immunities, powers, and duties, (ii) be subject to
18the same conditions, restrictions, limitations, penalties, and
19definitions of terms, and (iii) employ the same modes of
20procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
211f, 1i, 1j, 1k, 1m, 1n, 2 through 2-70 (in respect to all
22provisions contained in those Sections other than the State
23rate of tax), 2a, 2b, 2c, 3 (except provisions relating to
24transaction returns and quarter monthly payments, and except
25that the retailer's discount is not allowed for taxes paid on
26aviation fuel that are deposited into the Local Government

 

 

SB0157 Enrolled- 386 -LRB102 10128 HLH 16591 b

1Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
25j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13
3of the Retailers' Occupation Tax Act and Section 3-7 of the
4Uniform Penalty and Interest Act as if those provisions were
5set forth in this Section.
6    Persons subject to any tax imposed under the authority
7granted in this Section may reimburse themselves for their
8sellers' tax liability by separately stating the tax as an
9additional charge, which charge may be stated in combination,
10in a single amount, with State tax which sellers are required
11to collect under the Use Tax Act, pursuant to such bracketed
12schedules as the Department may prescribe.
13    Whenever the Department determines that a refund should be
14made under this Section to a claimant instead of issuing a
15credit memorandum, the Department shall notify the State
16Comptroller, who shall cause the order to be drawn for the
17amount specified and to the person named in the notification
18from the Department. The refund shall be paid by the State
19Treasurer out of the County Public Safety, Public Facilities,
20Mental Health, Substance Abuse, or Transportation Retailers'
21Occupation Tax Fund or the Local Government Aviation Trust
22Fund, as appropriate.
23    (b) If a tax has been imposed under subsection (a), a
24service occupation tax shall also be imposed at the same rate
25upon all persons engaged, in the county, in the business of
26making sales of service, who, as an incident to making those

 

 

SB0157 Enrolled- 387 -LRB102 10128 HLH 16591 b

1sales of service, transfer tangible personal property within
2the county as an incident to a sale of service. This tax may
3not be imposed on tangible personal property taxed at the 1%
4rate under the Service Occupation Tax Act (or at the 0% rate
5imposed under this amendatory Act of the 102nd General
6Assembly). Beginning December 1, 2019 and through December 31,
72020, this tax is not imposed on sales of aviation fuel unless
8the tax revenue is expended for airport-related purposes. If
9the county does not have an airport-related purpose to which
10it dedicates aviation fuel tax revenue, then aviation fuel is
11excluded from the tax. The county must comply with the
12certification requirements for airport-related purposes under
13Section 2-22 of the Retailers' Occupation Tax Act. For
14purposes of this Section, "airport-related purposes" has the
15meaning ascribed in Section 6z-20.2 of the State Finance Act.
16Beginning January 1, 2021, this tax is not imposed on sales of
17aviation fuel for so long as the revenue use requirements of 49
18U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
19The tax imposed under this subsection and all civil penalties
20that may be assessed as an incident thereof shall be collected
21and enforced by the Department of Revenue. The Department has
22full power to administer and enforce this subsection; to
23collect all taxes and penalties due hereunder; to dispose of
24taxes and penalties so collected in the manner hereinafter
25provided; and to determine all rights to credit memoranda
26arising on account of the erroneous payment of tax or penalty

 

 

SB0157 Enrolled- 388 -LRB102 10128 HLH 16591 b

1hereunder. In the administration of and compliance with this
2subsection, the Department and persons who are subject to this
3paragraph shall (i) have the same rights, remedies,
4privileges, immunities, powers, and duties, (ii) be subject to
5the same conditions, restrictions, limitations, penalties,
6exclusions, exemptions, and definitions of terms, and (iii)
7employ the same modes of procedure as are prescribed in
8Sections 2 (except that the reference to State in the
9definition of supplier maintaining a place of business in this
10State shall mean the county), 2a, 2b, 2c, 3 through 3-50 (in
11respect to all provisions therein other than the State rate of
12tax), 4 (except that the reference to the State shall be to the
13county), 5, 7, 8 (except that the jurisdiction to which the tax
14shall be a debt to the extent indicated in that Section 8 shall
15be the county), 9 (except as to the disposition of taxes and
16penalties collected, and except that the retailer's discount
17is not allowed for taxes paid on aviation fuel that are
18deposited into the Local Government Aviation Trust Fund), 10,
1911, 12 (except the reference therein to Section 2b of the
20Retailers' Occupation Tax Act), 13 (except that any reference
21to the State shall mean the county), Section 15, 16, 17, 18,
2219, and 20 of the Service Occupation Tax Act, and Section 3-7
23of the Uniform Penalty and Interest Act, as fully as if those
24provisions were set forth herein.
25    Persons subject to any tax imposed under the authority
26granted in this subsection may reimburse themselves for their

 

 

SB0157 Enrolled- 389 -LRB102 10128 HLH 16591 b

1serviceman's tax liability by separately stating the tax as an
2additional charge, which charge may be stated in combination,
3in a single amount, with State tax that servicemen are
4authorized to collect under the Service Use Tax Act, in
5accordance with such bracket schedules as the Department may
6prescribe.
7    Whenever the Department determines that a refund should be
8made under this subsection to a claimant instead of issuing a
9credit memorandum, the Department shall notify the State
10Comptroller, who shall cause the warrant to be drawn for the
11amount specified, and to the person named, in the notification
12from the Department. The refund shall be paid by the State
13Treasurer out of the County Public Safety, Public Facilities,
14Mental Health, Substance Abuse, or Transportation Retailers'
15Occupation Fund or the Local Government Aviation Trust Fund,
16as appropriate.
17    Nothing in this subsection shall be construed to authorize
18the county to impose a tax upon the privilege of engaging in
19any business which under the Constitution of the United States
20may not be made the subject of taxation by the State.
21    (c) Except as otherwise provided in this paragraph, the
22Department shall immediately pay over to the State Treasurer,
23ex officio, as trustee, all taxes and penalties collected
24under this Section to be deposited into the County Public
25Safety, Public Facilities, Mental Health, Substance Abuse, or
26Transportation Retailers' Occupation Tax Fund, which shall be

 

 

SB0157 Enrolled- 390 -LRB102 10128 HLH 16591 b

1an unappropriated trust fund held outside of the State
2treasury. Taxes and penalties collected on aviation fuel sold
3on or after December 1, 2019 and through December 31, 2020,
4shall be immediately paid over by the Department to the State
5Treasurer, ex officio, as trustee, for deposit into the Local
6Government Aviation Trust Fund. The Department shall only pay
7moneys into the Local Government Aviation Trust Fund under
8this Act for so long as the revenue use requirements of 49
9U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
10    As soon as possible after the first day of each month,
11beginning January 1, 2011, upon certification of the
12Department of Revenue, the Comptroller shall order
13transferred, and the Treasurer shall transfer, to the STAR
14Bonds Revenue Fund the local sales tax increment, as defined
15in the Innovation Development and Economy Act, collected under
16this Section during the second preceding calendar month for
17sales within a STAR bond district.
18    After the monthly transfer to the STAR Bonds Revenue Fund,
19on or before the 25th day of each calendar month, the
20Department shall prepare and certify to the Comptroller the
21disbursement of stated sums of money to the counties from
22which retailers have paid taxes or penalties to the Department
23during the second preceding calendar month. The amount to be
24paid to each county, and deposited by the county into its
25special fund created for the purposes of this Section, shall
26be the amount (not including credit memoranda and not

 

 

SB0157 Enrolled- 391 -LRB102 10128 HLH 16591 b

1including taxes and penalties collected on aviation fuel sold
2on or after December 1, 2019 and through December 31, 2020)
3collected under this Section during the second preceding
4calendar month by the Department plus an amount the Department
5determines is necessary to offset any amounts that were
6erroneously paid to a different taxing body, and not including
7(i) an amount equal to the amount of refunds made during the
8second preceding calendar month by the Department on behalf of
9the county, (ii) any amount that the Department determines is
10necessary to offset any amounts that were payable to a
11different taxing body but were erroneously paid to the county,
12(iii) any amounts that are transferred to the STAR Bonds
13Revenue Fund, and (iv) 1.5% of the remainder, which shall be
14transferred into the Tax Compliance and Administration Fund.
15The Department, at the time of each monthly disbursement to
16the counties, shall prepare and certify to the State
17Comptroller the amount to be transferred into the Tax
18Compliance and Administration Fund under this subsection.
19Within 10 days after receipt by the Comptroller of the
20disbursement certification to the counties and the Tax
21Compliance and Administration Fund provided for in this
22Section to be given to the Comptroller by the Department, the
23Comptroller shall cause the orders to be drawn for the
24respective amounts in accordance with directions contained in
25the certification.
26    In addition to the disbursement required by the preceding

 

 

SB0157 Enrolled- 392 -LRB102 10128 HLH 16591 b

1paragraph, an allocation shall be made in March of each year to
2each county that received more than $500,000 in disbursements
3under the preceding paragraph in the preceding calendar year.
4The allocation shall be in an amount equal to the average
5monthly distribution made to each such county under the
6preceding paragraph during the preceding calendar year
7(excluding the 2 months of highest receipts). The distribution
8made in March of each year subsequent to the year in which an
9allocation was made pursuant to this paragraph and the
10preceding paragraph shall be reduced by the amount allocated
11and disbursed under this paragraph in the preceding calendar
12year. The Department shall prepare and certify to the
13Comptroller for disbursement the allocations made in
14accordance with this paragraph.
15    (d) For the purpose of determining the local governmental
16unit whose tax is applicable, a retail sale by a producer of
17coal or another mineral mined in Illinois is a sale at retail
18at the place where the coal or other mineral mined in Illinois
19is extracted from the earth. This paragraph does not apply to
20coal or another mineral when it is delivered or shipped by the
21seller to the purchaser at a point outside Illinois so that the
22sale is exempt under the United States Constitution as a sale
23in interstate or foreign commerce.
24    (e) Nothing in this Section shall be construed to
25authorize a county to impose a tax upon the privilege of
26engaging in any business that under the Constitution of the

 

 

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1United States may not be made the subject of taxation by this
2State.
3    (e-5) If a county imposes a tax under this Section, the
4county board may, by ordinance, discontinue or lower the rate
5of the tax. If the county board lowers the tax rate or
6discontinues the tax, a referendum must be held in accordance
7with subsection (a) of this Section in order to increase the
8rate of the tax or to reimpose the discontinued tax.
9    (f) Beginning April 1, 1998 and through December 31, 2013,
10the results of any election authorizing a proposition to
11impose a tax under this Section or effecting a change in the
12rate of tax, or any ordinance lowering the rate or
13discontinuing the tax, shall be certified by the county clerk
14and filed with the Illinois Department of Revenue either (i)
15on or before the first day of April, whereupon the Department
16shall proceed to administer and enforce the tax as of the first
17day of July next following the filing; or (ii) on or before the
18first day of October, whereupon the Department shall proceed
19to administer and enforce the tax as of the first day of
20January next following the filing.
21    Beginning January 1, 2014, the results of any election
22authorizing a proposition to impose a tax under this Section
23or effecting an increase in the rate of tax, along with the
24ordinance adopted to impose the tax or increase the rate of the
25tax, or any ordinance adopted to lower the rate or discontinue
26the tax, shall be certified by the county clerk and filed with

 

 

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1the Illinois Department of Revenue either (i) on or before the
2first day of May, whereupon the Department shall proceed to
3administer and enforce the tax as of the first day of July next
4following the adoption and filing; or (ii) on or before the
5first day of October, whereupon the Department shall proceed
6to administer and enforce the tax as of the first day of
7January next following the adoption and filing.
8    (g) When certifying the amount of a monthly disbursement
9to a county under this Section, the Department shall increase
10or decrease the amounts by an amount necessary to offset any
11miscalculation of previous disbursements. The offset amount
12shall be the amount erroneously disbursed within the previous
136 months from the time a miscalculation is discovered.
14    (g-5) Every county authorized to levy a tax under this
15Section shall, before it levies such tax, establish a 7-member
16mental health board, which shall have the same powers and
17duties and be constituted in the same manner as a community
18mental health board established under the Community Mental
19Health Act. Proceeds of the tax under this Section that are
20earmarked for mental health or substance abuse purposes shall
21be deposited into a special county occupation tax fund for
22mental health and substance abuse. The 7-member mental health
23board established under this subsection shall administer the
24special county occupation tax fund for mental health and
25substance abuse in the same manner as the community mental
26health board administers the community mental health fund

 

 

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1under the Community Mental Health Act.
2    (h) This Section may be cited as the "Special County
3Occupation Tax For Public Safety, Public Facilities, Mental
4Health, Substance Abuse, or Transportation Law".
5    (i) For purposes of this Section, "public safety"
6includes, but is not limited to, crime prevention, detention,
7fire fighting, police, medical, ambulance, or other emergency
8services. The county may share tax proceeds received under
9this Section for public safety purposes, including proceeds
10received before August 4, 2009 (the effective date of Public
11Act 96-124), with any fire protection district located in the
12county. For the purposes of this Section, "transportation"
13includes, but is not limited to, the construction,
14maintenance, operation, and improvement of public highways,
15any other purpose for which a county may expend funds under the
16Illinois Highway Code, and passenger rail transportation. For
17the purposes of this Section, "public facilities purposes"
18includes, but is not limited to, the acquisition, development,
19construction, reconstruction, rehabilitation, improvement,
20financing, architectural planning, and installation of capital
21facilities consisting of buildings, structures, and durable
22equipment and for the acquisition and improvement of real
23property and interest in real property required, or expected
24to be required, in connection with the public facilities, for
25use by the county for the furnishing of governmental services
26to its citizens, including, but not limited to, museums and

 

 

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1nursing homes.
2    (j) The Department may promulgate rules to implement
3Public Act 95-1002 only to the extent necessary to apply the
4existing rules for the Special County Retailers' Occupation
5Tax for Public Safety to this new purpose for public
6facilities.
7(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
8101-275, eff. 8-9-19; 101-604, eff. 12-13-19; 102-379, eff.
91-1-22.)
 
10    (55 ILCS 5/5-1006.7)
11    Sec. 5-1006.7. School facility and resources occupation
12taxes.
13    (a) In any county, a tax shall be imposed upon all persons
14engaged in the business of selling tangible personal property,
15other than personal property titled or registered with an
16agency of this State's government, at retail in the county on
17the gross receipts from the sales made in the course of
18business to provide revenue to be used exclusively for (i)
19school facility purposes (except as otherwise provided in this
20Section), (ii) school resource officers and mental health
21professionals, or (iii) school facility purposes, school
22resource officers, and mental health professionals if a
23proposition for the tax has been submitted to the electors of
24that county and approved by a majority of those voting on the
25question as provided in subsection (c). The tax under this

 

 

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1Section shall be imposed only in one-quarter percent
2increments and may not exceed 1%.
3    This additional tax may not be imposed on tangible
4personal property taxed at the 1% rate under the Retailers'
5Occupation Tax Act (or at the 0% rate imposed under this
6amendatory Act of the 102nd General Assembly). Beginning
7December 1, 2019 and through December 31, 2020, this tax is not
8imposed on sales of aviation fuel unless the tax revenue is
9expended for airport-related purposes. If the county does not
10have an airport-related purpose to which it dedicates aviation
11fuel tax revenue, then aviation fuel is excluded from the tax.
12The county must comply with the certification requirements for
13airport-related purposes under Section 2-22 of the Retailers'
14Occupation Tax Act. For purposes of this Section,
15"airport-related purposes" has the meaning ascribed in Section
166z-20.2 of the State Finance Act. Beginning January 1, 2021,
17this tax is not imposed on sales of aviation fuel for so long
18as the revenue use requirements of 49 U.S.C. 47107(b) and 49
19U.S.C. 47133 are binding on the county. The Department of
20Revenue has full power to administer and enforce this
21subsection, to collect all taxes and penalties due under this
22subsection, to dispose of taxes and penalties so collected in
23the manner provided in this subsection, and to determine all
24rights to credit memoranda arising on account of the erroneous
25payment of a tax or penalty under this subsection. The
26Department shall deposit all taxes and penalties collected

 

 

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1under this subsection into a special fund created for that
2purpose.
3    In the administration of and compliance with this
4subsection, the Department and persons who are subject to this
5subsection (i) have the same rights, remedies, privileges,
6immunities, powers, and duties, (ii) are subject to the same
7conditions, restrictions, limitations, penalties, and
8definitions of terms, and (iii) shall employ the same modes of
9procedure as are set forth in Sections 1 through 1o, 2 through
102-70 (in respect to all provisions contained in those Sections
11other than the State rate of tax), 2a through 2h, 3 (except as
12to the disposition of taxes and penalties collected, and
13except that the retailer's discount is not allowed for taxes
14paid on aviation fuel that are subject to the revenue use
15requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
165a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c,
176d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
18Occupation Tax Act and all provisions of the Uniform Penalty
19and Interest Act as if those provisions were set forth in this
20subsection.
21    The certificate of registration that is issued by the
22Department to a retailer under the Retailers' Occupation Tax
23Act permits the retailer to engage in a business that is
24taxable without registering separately with the Department
25under an ordinance or resolution under this subsection.
26    Persons subject to any tax imposed under the authority

 

 

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1granted in this subsection may reimburse themselves for their
2seller's tax liability by separately stating that tax as an
3additional charge, which may be stated in combination, in a
4single amount, with State tax that sellers are required to
5collect under the Use Tax Act, pursuant to any bracketed
6schedules set forth by the Department.
7    (b) If a tax has been imposed under subsection (a), then a
8service occupation tax must also be imposed at the same rate
9upon all persons engaged, in the county, in the business of
10making sales of service, who, as an incident to making those
11sales of service, transfer tangible personal property within
12the county as an incident to a sale of service.
13    This tax may not be imposed on tangible personal property
14taxed at the 1% rate under the Service Occupation Tax Act (or
15at the 0% rate imposed under this amendatory Act of the 102nd
16General Assembly). Beginning December 1, 2019 and through
17December 31, 2020, this tax is not imposed on sales of aviation
18fuel unless the tax revenue is expended for airport-related
19purposes. If the county does not have an airport-related
20purpose to which it dedicates aviation fuel tax revenue, then
21aviation fuel is excluded from the tax. The county must comply
22with the certification requirements for airport-related
23purposes under Section 2-22 of the Retailers' Occupation Tax
24Act. For purposes of this Section, "airport-related purposes"
25has the meaning ascribed in Section 6z-20.2 of the State
26Finance Act. Beginning January 1, 2021, this tax is not

 

 

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1imposed on sales of aviation fuel for so long as the revenue
2use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
3binding on the county.
4    The tax imposed under this subsection and all civil
5penalties that may be assessed as an incident thereof shall be
6collected and enforced by the Department and deposited into a
7special fund created for that purpose. The Department has full
8power to administer and enforce this subsection, to collect
9all taxes and penalties due under this subsection, to dispose
10of taxes and penalties so collected in the manner provided in
11this subsection, and to determine all rights to credit
12memoranda arising on account of the erroneous payment of a tax
13or penalty under this subsection.
14    In the administration of and compliance with this
15subsection, the Department and persons who are subject to this
16subsection shall (i) have the same rights, remedies,
17privileges, immunities, powers and duties, (ii) be subject to
18the same conditions, restrictions, limitations, penalties and
19definition of terms, and (iii) employ the same modes of
20procedure as are set forth in Sections 2 (except that that
21reference to State in the definition of supplier maintaining a
22place of business in this State means the county), 2a through
232d, 3 through 3-50 (in respect to all provisions contained in
24those Sections other than the State rate of tax), 4 (except
25that the reference to the State shall be to the county), 5, 7,
268 (except that the jurisdiction to which the tax is a debt to

 

 

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1the extent indicated in that Section 8 is the county), 9
2(except as to the disposition of taxes and penalties
3collected, and except that the retailer's discount is not
4allowed for taxes paid on aviation fuel that are subject to the
5revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
647133), 10, 11, 12 (except the reference therein to Section 2b
7of the Retailers' Occupation Tax Act), 13 (except that any
8reference to the State means the county), Section 15, 16, 17,
918, 19, and 20 of the Service Occupation Tax Act and all
10provisions of the Uniform Penalty and Interest Act, as fully
11as if those provisions were set forth herein.
12    Persons subject to any tax imposed under the authority
13granted in this subsection may reimburse themselves for their
14serviceman's tax liability by separately stating the tax as an
15additional charge, which may be stated in combination, in a
16single amount, with State tax that servicemen are authorized
17to collect under the Service Use Tax Act, pursuant to any
18bracketed schedules set forth by the Department.
19    (c) The tax under this Section may not be imposed until the
20question of imposing the tax has been submitted to the
21electors of the county at a regular election and approved by a
22majority of the electors voting on the question. For all
23regular elections held prior to August 23, 2011 (the effective
24date of Public Act 97-542), upon a resolution by the county
25board or a resolution by school district boards that represent
26at least 51% of the student enrollment within the county, the

 

 

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1county board must certify the question to the proper election
2authority in accordance with the Election Code.
3    For all regular elections held prior to August 23, 2011
4(the effective date of Public Act 97-542), the election
5authority must submit the question in substantially the
6following form:
7        Shall (name of county) be authorized to impose a
8    retailers' occupation tax and a service occupation tax
9    (commonly referred to as a "sales tax") at a rate of
10    (insert rate) to be used exclusively for school facility
11    purposes?
12    The election authority must record the votes as "Yes" or
13"No".
14    If a majority of the electors voting on the question vote
15in the affirmative, then the county may, thereafter, impose
16the tax.
17    For all regular elections held on or after August 23, 2011
18(the effective date of Public Act 97-542), the regional
19superintendent of schools for the county must, upon receipt of
20a resolution or resolutions of school district boards that
21represent more than 50% of the student enrollment within the
22county, certify the question to the proper election authority
23for submission to the electors of the county at the next
24regular election at which the question lawfully may be
25submitted to the electors, all in accordance with the Election
26Code.

 

 

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1    For all regular elections held on or after August 23, 2011
2(the effective date of Public Act 97-542) and before August
323, 2019 (the effective date of Public Act 101-455), the
4election authority must submit the question in substantially
5the following form:
6        Shall a retailers' occupation tax and a service
7    occupation tax (commonly referred to as a "sales tax") be
8    imposed in (name of county) at a rate of (insert rate) to
9    be used exclusively for school facility purposes?
10    The election authority must record the votes as "Yes" or
11"No".
12    If a majority of the electors voting on the question vote
13in the affirmative, then the tax shall be imposed at the rate
14set forth in the question.
15    For all regular elections held on or after August 23, 2019
16(the effective date of Public Act 101-455), the election
17authority must submit the question as follows:
18        (1) If the referendum is to expand the use of revenues
19    from a currently imposed tax exclusively for school
20    facility purposes to include school resource officers and
21    mental health professionals, the question shall be in
22    substantially the following form:
23            In addition to school facility purposes, shall
24        (name of county) school districts be authorized to use
25        revenues from the tax commonly referred to as the
26        school facility sales tax that is currently imposed in

 

 

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1        (name of county) at a rate of (insert rate) for school
2        resource officers and mental health professionals?
3        (2) If the referendum is to increase the rate of a tax
4    currently imposed exclusively for school facility purposes
5    at less than 1% and dedicate the additional revenues for
6    school resource officers and mental health professionals,
7    the question shall be in substantially the following form:
8            Shall the tax commonly referred to as the school
9        facility sales tax that is currently imposed in (name
10        of county) at the rate of (insert rate) be increased to
11        a rate of (insert rate) with the additional revenues
12        used exclusively for school resource officers and
13        mental health professionals?
14        (3) If the referendum is to impose a tax in a county
15    that has not previously imposed a tax under this Section
16    exclusively for school facility purposes, the question
17    shall be in substantially the following form:
18            Shall a retailers' occupation tax and a service
19        occupation tax (commonly referred to as a sales tax)
20        be imposed in (name of county) at a rate of (insert
21        rate) to be used exclusively for school facility
22        purposes?
23        (4) If the referendum is to impose a tax in a county
24    that has not previously imposed a tax under this Section
25    exclusively for school resource officers and mental health
26    professionals, the question shall be in substantially the

 

 

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1    following form:
2            Shall a retailers' occupation tax and a service
3        occupation tax (commonly referred to as a sales tax)
4        be imposed in (name of county) at a rate of (insert
5        rate) to be used exclusively for school resource
6        officers and mental health professionals?
7        (5) If the referendum is to impose a tax in a county
8    that has not previously imposed a tax under this Section
9    exclusively for school facility purposes, school resource
10    officers, and mental health professionals, the question
11    shall be in substantially the following form:
12            Shall a retailers' occupation tax and a service
13        occupation tax (commonly referred to as a sales tax)
14        be imposed in (name of county) at a rate of (insert
15        rate) to be used exclusively for school facility
16        purposes, school resource officers, and mental health
17        professionals?
18    The election authority must record the votes as "Yes" or
19"No".
20    If a majority of the electors voting on the question vote
21in the affirmative, then the tax shall be imposed at the rate
22set forth in the question.
23    For the purposes of this subsection (c), "enrollment"
24means the head count of the students residing in the county on
25the last school day of September of each year, which must be
26reported on the Illinois State Board of Education Public

 

 

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1School Fall Enrollment/Housing Report.
2    (d) Except as otherwise provided, the Department shall
3immediately pay over to the State Treasurer, ex officio, as
4trustee, all taxes and penalties collected under this Section
5to be deposited into the School Facility Occupation Tax Fund,
6which shall be an unappropriated trust fund held outside the
7State treasury. Taxes and penalties collected on aviation fuel
8sold on or after December 1, 2019 and through December 31,
92020, shall be immediately paid over by the Department to the
10State Treasurer, ex officio, as trustee, for deposit into the
11Local Government Aviation Trust Fund. The Department shall
12only pay moneys into the Local Government Aviation Trust Fund
13under this Section for so long as the revenue use requirements
14of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
15county.
16    On or before the 25th day of each calendar month, the
17Department shall prepare and certify to the Comptroller the
18disbursement of stated sums of money to the regional
19superintendents of schools in counties from which retailers or
20servicemen have paid taxes or penalties to the Department
21during the second preceding calendar month. The amount to be
22paid to each regional superintendent of schools and disbursed
23to him or her in accordance with Section 3-14.31 of the School
24Code, is equal to the amount (not including credit memoranda
25and not including taxes and penalties collected on aviation
26fuel sold on or after December 1, 2019 and through December 31,

 

 

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12020) collected from the county under this Section during the
2second preceding calendar month by the Department, (i) less 2%
3of that amount (except the amount collected on aviation fuel
4sold on or after December 1, 2019 and through December 31,
52020), which shall be deposited into the Tax Compliance and
6Administration Fund and shall be used by the Department,
7subject to appropriation, to cover the costs of the Department
8in administering and enforcing the provisions of this Section,
9on behalf of the county, (ii) plus an amount that the
10Department determines is necessary to offset any amounts that
11were erroneously paid to a different taxing body; (iii) less
12an amount equal to the amount of refunds made during the second
13preceding calendar month by the Department on behalf of the
14county; and (iv) less any amount that the Department
15determines is necessary to offset any amounts that were
16payable to a different taxing body but were erroneously paid
17to the county. When certifying the amount of a monthly
18disbursement to a regional superintendent of schools under
19this Section, the Department shall increase or decrease the
20amounts by an amount necessary to offset any miscalculation of
21previous disbursements within the previous 6 months from the
22time a miscalculation is discovered.
23    Within 10 days after receipt by the Comptroller from the
24Department of the disbursement certification to the regional
25superintendents of the schools provided for in this Section,
26the Comptroller shall cause the orders to be drawn for the

 

 

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1respective amounts in accordance with directions contained in
2the certification.
3    If the Department determines that a refund should be made
4under this Section to a claimant instead of issuing a credit
5memorandum, then the Department shall notify the Comptroller,
6who shall cause the order to be drawn for the amount specified
7and to the person named in the notification from the
8Department. The refund shall be paid by the Treasurer out of
9the School Facility Occupation Tax Fund or the Local
10Government Aviation Trust Fund, as appropriate.
11    (e) For the purposes of determining the local governmental
12unit whose tax is applicable, a retail sale by a producer of
13coal or another mineral mined in Illinois is a sale at retail
14at the place where the coal or other mineral mined in Illinois
15is extracted from the earth. This subsection does not apply to
16coal or another mineral when it is delivered or shipped by the
17seller to the purchaser at a point outside Illinois so that the
18sale is exempt under the United States Constitution as a sale
19in interstate or foreign commerce.
20    (f) Nothing in this Section may be construed to authorize
21a tax to be imposed upon the privilege of engaging in any
22business that under the Constitution of the United States may
23not be made the subject of taxation by this State.
24    (g) If a county board imposes a tax under this Section
25pursuant to a referendum held before August 23, 2011 (the
26effective date of Public Act 97-542) at a rate below the rate

 

 

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1set forth in the question approved by a majority of electors of
2that county voting on the question as provided in subsection
3(c), then the county board may, by ordinance, increase the
4rate of the tax up to the rate set forth in the question
5approved by a majority of electors of that county voting on the
6question as provided in subsection (c). If a county board
7imposes a tax under this Section pursuant to a referendum held
8before August 23, 2011 (the effective date of Public Act
997-542), then the board may, by ordinance, discontinue or
10reduce the rate of the tax. If a tax is imposed under this
11Section pursuant to a referendum held on or after August 23,
122011 (the effective date of Public Act 97-542) and before
13August 23, 2019 (the effective date of Public Act 101-455),
14then the county board may reduce or discontinue the tax, but
15only in accordance with subsection (h-5) of this Section. If a
16tax is imposed under this Section pursuant to a referendum
17held on or after August 23, 2019 (the effective date of Public
18Act 101-455), then the county board may reduce or discontinue
19the tax, but only in accordance with subsection (h-10). If,
20however, a school board issues bonds that are secured by the
21proceeds of the tax under this Section, then the county board
22may not reduce the tax rate or discontinue the tax if that rate
23reduction or discontinuance would adversely affect the school
24board's ability to pay the principal and interest on those
25bonds as they become due or necessitate the extension of
26additional property taxes to pay the principal and interest on

 

 

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1those bonds. If the county board reduces the tax rate or
2discontinues the tax, then a referendum must be held in
3accordance with subsection (c) of this Section in order to
4increase the rate of the tax or to reimpose the discontinued
5tax.
6    Until January 1, 2014, the results of any election that
7imposes, reduces, or discontinues a tax under this Section
8must be certified by the election authority, and any ordinance
9that increases or lowers the rate or discontinues the tax must
10be certified by the county clerk and, in each case, filed with
11the Illinois Department of Revenue either (i) on or before the
12first day of April, whereupon the Department shall proceed to
13administer and enforce the tax or change in the rate as of the
14first day of July next following the filing; or (ii) on or
15before the first day of October, whereupon the Department
16shall proceed to administer and enforce the tax or change in
17the rate as of the first day of January next following the
18filing.
19    Beginning January 1, 2014, the results of any election
20that imposes, reduces, or discontinues a tax under this
21Section must be certified by the election authority, and any
22ordinance that increases or lowers the rate or discontinues
23the tax must be certified by the county clerk and, in each
24case, filed with the Illinois Department of Revenue either (i)
25on or before the first day of May, whereupon the Department
26shall proceed to administer and enforce the tax or change in

 

 

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1the rate as of the first day of July next following the filing;
2or (ii) on or before the first day of October, whereupon the
3Department shall proceed to administer and enforce the tax or
4change in the rate as of the first day of January next
5following the filing.
6    (h) For purposes of this Section, "school facility
7purposes" means (i) the acquisition, development,
8construction, reconstruction, rehabilitation, improvement,
9financing, architectural planning, and installation of capital
10facilities consisting of buildings, structures, and durable
11equipment and for the acquisition and improvement of real
12property and interest in real property required, or expected
13to be required, in connection with the capital facilities and
14(ii) the payment of bonds or other obligations heretofore or
15hereafter issued, including bonds or other obligations
16heretofore or hereafter issued to refund or to continue to
17refund bonds or other obligations issued, for school facility
18purposes, provided that the taxes levied to pay those bonds
19are abated by the amount of the taxes imposed under this
20Section that are used to pay those bonds. "School facility
21purposes" also includes fire prevention, safety, energy
22conservation, accessibility, school security, and specified
23repair purposes set forth under Section 17-2.11 of the School
24Code.
25    (h-5) A county board in a county where a tax has been
26imposed under this Section pursuant to a referendum held on or

 

 

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1after August 23, 2011 (the effective date of Public Act
297-542) and before August 23, 2019 (the effective date of
3Public Act 101-455) may, by ordinance or resolution, submit to
4the voters of the county the question of reducing or
5discontinuing the tax. In the ordinance or resolution, the
6county board shall certify the question to the proper election
7authority in accordance with the Election Code. The election
8authority must submit the question in substantially the
9following form:
10        Shall the school facility retailers' occupation tax
11    and service occupation tax (commonly referred to as the
12    "school facility sales tax") currently imposed in (name of
13    county) at a rate of (insert rate) be (reduced to (insert
14    rate))(discontinued)?
15If a majority of the electors voting on the question vote in
16the affirmative, then, subject to the provisions of subsection
17(g) of this Section, the tax shall be reduced or discontinued
18as set forth in the question.
19    (h-10) A county board in a county where a tax has been
20imposed under this Section pursuant to a referendum held on or
21after August 23, 2019 (the effective date of Public Act
22101-455) may, by ordinance or resolution, submit to the voters
23of the county the question of reducing or discontinuing the
24tax. In the ordinance or resolution, the county board shall
25certify the question to the proper election authority in
26accordance with the Election Code. The election authority must

 

 

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1submit the question in substantially the following form:
2        Shall the school facility and resources retailers'
3    occupation tax and service occupation tax (commonly
4    referred to as the school facility and resources sales
5    tax) currently imposed in (name of county) at a rate of
6    (insert rate) be (reduced to (insert rate))
7    (discontinued)?
8    The election authority must record the votes as "Yes" or
9"No".
10    If a majority of the electors voting on the question vote
11in the affirmative, then, subject to the provisions of
12subsection (g) of this Section, the tax shall be reduced or
13discontinued as set forth in the question.
14    (i) This Section does not apply to Cook County.
15    (j) This Section may be cited as the County School
16Facility and Resources Occupation Tax Law.
17(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19;
18101-455, eff. 8-23-19; 101-604, eff. 12-13-19.)
 
19    (55 ILCS 5/5-1007)  (from Ch. 34, par. 5-1007)
20    Sec. 5-1007. Home Rule County Service Occupation Tax Law.
21The corporate authorities of a home rule county may impose a
22tax upon all persons engaged, in such county, in the business
23of making sales of service at the same rate of tax imposed
24pursuant to Section 5-1006 of the selling price of all
25tangible personal property transferred by such servicemen

 

 

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1either in the form of tangible personal property or in the form
2of real estate as an incident to a sale of service. If imposed,
3such tax shall only be imposed in 1/4% increments. On and after
4September 1, 1991, this additional tax may not be imposed on
5tangible personal property taxed at the 1% rate under the
6Service Occupation Tax Act (or at the 0% rate imposed under
7this amendatory Act of the 102nd General Assembly). Beginning
8December 1, 2019, this tax is not imposed on sales of aviation
9fuel unless the tax revenue is expended for airport-related
10purposes. If the county does not have an airport-related
11purpose to which it dedicates aviation fuel tax revenue, then
12aviation fuel is excluded from the tax. The county must comply
13with the certification requirements for airport-related
14purposes under Section 2-22 of the Retailers' Occupation Tax
15Act. For purposes of this Section, "airport-related purposes"
16has the meaning ascribed in Section 6z-20.2 of the State
17Finance Act. This exclusion for aviation fuel only applies for
18so long as the revenue use requirements of 49 U.S.C. 47107(b)
19and 49 U.S.C. 47133 are binding on the county. The changes made
20to this Section by this amendatory Act of the 101st General
21Assembly are a denial and limitation of home rule powers and
22functions under subsection (g) of Section 6 of Article VII of
23the Illinois Constitution. The tax imposed by a home rule
24county pursuant to this Section and all civil penalties that
25may be assessed as an incident thereof shall be collected and
26enforced by the State Department of Revenue. The certificate

 

 

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1of registration which is issued by the Department to a
2retailer under the Retailers' Occupation Tax Act or under the
3Service Occupation Tax Act shall permit such registrant to
4engage in a business which is taxable under any ordinance or
5resolution enacted pursuant to this Section without
6registering separately with the Department under such
7ordinance or resolution or under this Section. The Department
8shall have full power to administer and enforce this Section;
9to collect all taxes and penalties due hereunder; to dispose
10of taxes and penalties so collected in the manner hereinafter
11provided; and to determine all rights to credit memoranda
12arising on account of the erroneous payment of tax or penalty
13hereunder. In the administration of, and compliance with, this
14Section the Department and persons who are subject to this
15Section shall have the same rights, remedies, privileges,
16immunities, powers and duties, and be subject to the same
17conditions, restrictions, limitations, penalties and
18definitions of terms, and employ the same modes of procedure,
19as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
20respect to all provisions therein other than the State rate of
21tax), 4 (except that the reference to the State shall be to the
22taxing county), 5, 7, 8 (except that the jurisdiction to which
23the tax shall be a debt to the extent indicated in that Section
248 shall be the taxing county), 9 (except as to the disposition
25of taxes and penalties collected, and except that the returned
26merchandise credit for this county tax may not be taken

 

 

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1against any State tax, and except that the retailer's discount
2is not allowed for taxes paid on aviation fuel that are subject
3to the revenue use requirements of 49 U.S.C. 47107(b) and 49
4U.S.C. 47133), 10, 11, 12 (except the reference therein to
5Section 2b of the Retailers' Occupation Tax Act), 13 (except
6that any reference to the State shall mean the taxing county),
7the first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
8Service Occupation Tax Act and Section 3-7 of the Uniform
9Penalty and Interest Act, as fully as if those provisions were
10set forth herein.
11    No tax may be imposed by a home rule county pursuant to
12this Section unless such county also imposes a tax at the same
13rate pursuant to Section 5-1006.
14    Persons subject to any tax imposed pursuant to the
15authority granted in this Section may reimburse themselves for
16their serviceman's tax liability hereunder by separately
17stating such tax as an additional charge, which charge may be
18stated in combination, in a single amount, with State tax
19which servicemen are authorized to collect under the Service
20Use Tax Act, pursuant to such bracket schedules as the
21Department may prescribe.
22    Whenever the Department determines that a refund should be
23made under this Section to a claimant instead of issuing
24credit memorandum, the Department shall notify the State
25Comptroller, who shall cause the order to be drawn for the
26amount specified, and to the person named, in such

 

 

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1notification from the Department. Such refund shall be paid by
2the State Treasurer out of the home rule county retailers'
3occupation tax fund or the Local Government Aviation Trust
4Fund, as appropriate.
5    Except as otherwise provided in this paragraph, the
6Department shall forthwith pay over to the State Treasurer, ex
7officio, as trustee, all taxes and penalties collected
8hereunder for deposit into the Home Rule County Retailers'
9Occupation Tax Fund. Taxes and penalties collected on aviation
10fuel sold on or after December 1, 2019, shall be immediately
11paid over by the Department to the State Treasurer, ex
12officio, as trustee, for deposit into the Local Government
13Aviation Trust Fund. The Department shall only pay moneys into
14the Local Government Aviation Trust Fund under this Section
15for so long as the revenue use requirements of 49 U.S.C.
1647107(b) and 49 U.S.C. 47133 are binding on the county.
17    As soon as possible after the first day of each month,
18beginning January 1, 2011, upon certification of the
19Department of Revenue, the Comptroller shall order
20transferred, and the Treasurer shall transfer, to the STAR
21Bonds Revenue Fund the local sales tax increment, as defined
22in the Innovation Development and Economy Act, collected under
23this Section during the second preceding calendar month for
24sales within a STAR bond district.
25    After the monthly transfer to the STAR Bonds Revenue Fund,
26on or before the 25th day of each calendar month, the

 

 

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1Department shall prepare and certify to the Comptroller the
2disbursement of stated sums of money to named counties, the
3counties to be those from which suppliers and servicemen have
4paid taxes or penalties hereunder to the Department during the
5second preceding calendar month. The amount to be paid to each
6county shall be the amount (not including credit memoranda and
7not including taxes and penalties collected on aviation fuel
8sold on or after December 1, 2019) collected hereunder during
9the second preceding calendar month by the Department, and not
10including an amount equal to the amount of refunds made during
11the second preceding calendar month by the Department on
12behalf of such county, and not including any amounts that are
13transferred to the STAR Bonds Revenue Fund, less 1.5% of the
14remainder, which the Department shall transfer into the Tax
15Compliance and Administration Fund. The Department, at the
16time of each monthly disbursement to the counties, shall
17prepare and certify to the State Comptroller the amount to be
18transferred into the Tax Compliance and Administration Fund
19under this Section. Within 10 days after receipt, by the
20Comptroller, of the disbursement certification to the counties
21and the Tax Compliance and Administration Fund provided for in
22this Section to be given to the Comptroller by the Department,
23the Comptroller shall cause the orders to be drawn for the
24respective amounts in accordance with the directions contained
25in such certification.
26    In addition to the disbursement required by the preceding

 

 

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1paragraph, an allocation shall be made in each year to each
2county which received more than $500,000 in disbursements
3under the preceding paragraph in the preceding calendar year.
4The allocation shall be in an amount equal to the average
5monthly distribution made to each such county under the
6preceding paragraph during the preceding calendar year
7(excluding the 2 months of highest receipts). The distribution
8made in March of each year subsequent to the year in which an
9allocation was made pursuant to this paragraph and the
10preceding paragraph shall be reduced by the amount allocated
11and disbursed under this paragraph in the preceding calendar
12year. The Department shall prepare and certify to the
13Comptroller for disbursement the allocations made in
14accordance with this paragraph.
15    Nothing in this Section shall be construed to authorize a
16county to impose a tax upon the privilege of engaging in any
17business which under the Constitution of the United States may
18not be made the subject of taxation by this State.
19    An ordinance or resolution imposing or discontinuing a tax
20hereunder or effecting a change in the rate thereof shall be
21adopted and a certified copy thereof filed with the Department
22on or before the first day of June, whereupon the Department
23shall proceed to administer and enforce this Section as of the
24first day of September next following such adoption and
25filing. Beginning January 1, 1992, an ordinance or resolution
26imposing or discontinuing the tax hereunder or effecting a

 

 

SB0157 Enrolled- 420 -LRB102 10128 HLH 16591 b

1change in the rate thereof shall be adopted and a certified
2copy thereof filed with the Department on or before the first
3day of July, whereupon the Department shall proceed to
4administer and enforce this Section as of the first day of
5October next following such adoption and filing. Beginning
6January 1, 1993, an ordinance or resolution imposing or
7discontinuing the tax hereunder or effecting a change in the
8rate thereof shall be adopted and a certified copy thereof
9filed with the Department on or before the first day of
10October, whereupon the Department shall proceed to administer
11and enforce this Section as of the first day of January next
12following such adoption and filing. Beginning April 1, 1998,
13an ordinance or resolution imposing or discontinuing the tax
14hereunder or effecting a change in the rate thereof shall
15either (i) be adopted and a certified copy thereof filed with
16the Department on or before the first day of April, whereupon
17the Department shall proceed to administer and enforce this
18Section as of the first day of July next following the adoption
19and filing; or (ii) be adopted and a certified copy thereof
20filed with the Department on or before the first day of
21October, whereupon the Department shall proceed to administer
22and enforce this Section as of the first day of January next
23following the adoption and filing.
24    This Section shall be known and may be cited as the Home
25Rule County Service Occupation Tax Law.
26(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;

 

 

SB0157 Enrolled- 421 -LRB102 10128 HLH 16591 b

1100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
27-12-19; 101-604, eff. 12-13-19.)
 
3    Section 60-45. The Illinois Municipal Code is amended by
4changing Sections 8-11-1, 8-11-1.3, 8-11-1.4, 8-11-1.6,
58-11-1.7, 8-11-5, and 11-74.3-6 as follows:
 
6    (65 ILCS 5/8-11-1)  (from Ch. 24, par. 8-11-1)
7    Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
8Act. The corporate authorities of a home rule municipality may
9impose a tax upon all persons engaged in the business of
10selling tangible personal property, other than an item of
11tangible personal property titled or registered with an agency
12of this State's government, at retail in the municipality on
13the gross receipts from these sales made in the course of such
14business. If imposed, the tax shall only be imposed in 1/4%
15increments. On and after September 1, 1991, this additional
16tax may not be imposed on tangible personal property taxed at
17the 1% rate under the Retailers' Occupation Tax Act (or at the
180% rate imposed under this amendatory Act of the 102nd General
19Assembly). Beginning December 1, 2019, this tax is not imposed
20on sales of aviation fuel unless the tax revenue is expended
21for airport-related purposes. If a municipality does not have
22an airport-related purpose to which it dedicates aviation fuel
23tax revenue, then aviation fuel is excluded from the tax. Each
24municipality must comply with the certification requirements

 

 

SB0157 Enrolled- 422 -LRB102 10128 HLH 16591 b

1for airport-related purposes under Section 2-22 of the
2Retailers' Occupation Tax Act. For purposes of this Section,
3"airport-related purposes" has the meaning ascribed in Section
46z-20.2 of the State Finance Act. This exclusion for aviation
5fuel only applies for so long as the revenue use requirements
6of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
7municipality. The changes made to this Section by this
8amendatory Act of the 101st General Assembly are a denial and
9limitation of home rule powers and functions under subsection
10(g) of Section 6 of Article VII of the Illinois Constitution.
11The tax imposed by a home rule municipality under this Section
12and all civil penalties that may be assessed as an incident of
13the tax shall be collected and enforced by the State
14Department of Revenue. The certificate of registration that is
15issued by the Department to a retailer under the Retailers'
16Occupation Tax Act shall permit the retailer to engage in a
17business that is taxable under any ordinance or resolution
18enacted pursuant to this Section without registering
19separately with the Department under such ordinance or
20resolution or under this Section. The Department shall have
21full power to administer and enforce this Section; to collect
22all taxes and penalties due hereunder; to dispose of taxes and
23penalties so collected in the manner hereinafter provided; and
24to determine all rights to credit memoranda arising on account
25of the erroneous payment of tax or penalty hereunder. In the
26administration of, and compliance with, this Section the

 

 

SB0157 Enrolled- 423 -LRB102 10128 HLH 16591 b

1Department and persons who are subject to this Section shall
2have the same rights, remedies, privileges, immunities, powers
3and duties, and be subject to the same conditions,
4restrictions, limitations, penalties and definitions of terms,
5and employ the same modes of procedure, as are prescribed in
6Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65
7(in respect to all provisions therein other than the State
8rate of tax), 2c, 3 (except as to the disposition of taxes and
9penalties collected, and except that the retailer's discount
10is not allowed for taxes paid on aviation fuel that are subject
11to the revenue use requirements of 49 U.S.C. 47107(b) and 49
12U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
135k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
14Retailers' Occupation Tax Act and Section 3-7 of the Uniform
15Penalty and Interest Act, as fully as if those provisions were
16set forth herein.
17    No tax may be imposed by a home rule municipality under
18this Section unless the municipality also imposes a tax at the
19same rate under Section 8-11-5 of this Act.
20    Persons subject to any tax imposed under the authority
21granted in this Section may reimburse themselves for their
22seller's tax liability hereunder by separately stating that
23tax as an additional charge, which charge may be stated in
24combination, in a single amount, with State tax which sellers
25are required to collect under the Use Tax Act, pursuant to such
26bracket schedules as the Department may prescribe.

 

 

SB0157 Enrolled- 424 -LRB102 10128 HLH 16591 b

1    Whenever the Department determines that a refund should be
2made under this Section to a claimant instead of issuing a
3credit memorandum, the Department shall notify the State
4Comptroller, who shall cause the order to be drawn for the
5amount specified and to the person named in the notification
6from the Department. The refund shall be paid by the State
7Treasurer out of the home rule municipal retailers' occupation
8tax fund or the Local Government Aviation Trust Fund, as
9appropriate.
10    Except as otherwise provided in this paragraph, the
11Department shall immediately pay over to the State Treasurer,
12ex officio, as trustee, all taxes and penalties collected
13hereunder for deposit into the Home Rule Municipal Retailers'
14Occupation Tax Fund. Taxes and penalties collected on aviation
15fuel sold on or after December 1, 2019, shall be immediately
16paid over by the Department to the State Treasurer, ex
17officio, as trustee, for deposit into the Local Government
18Aviation Trust Fund. The Department shall only pay moneys into
19the Local Government Aviation Trust Fund under this Section
20for so long as the revenue use requirements of 49 U.S.C.
2147107(b) and 49 U.S.C. 47133 are binding on the State.
22    As soon as possible after the first day of each month,
23beginning January 1, 2011, upon certification of the
24Department of Revenue, the Comptroller shall order
25transferred, and the Treasurer shall transfer, to the STAR
26Bonds Revenue Fund the local sales tax increment, as defined

 

 

SB0157 Enrolled- 425 -LRB102 10128 HLH 16591 b

1in the Innovation Development and Economy Act, collected under
2this Section during the second preceding calendar month for
3sales within a STAR bond district.
4    After the monthly transfer to the STAR Bonds Revenue Fund,
5on or before the 25th day of each calendar month, the
6Department shall prepare and certify to the Comptroller the
7disbursement of stated sums of money to named municipalities,
8the municipalities to be those from which retailers have paid
9taxes or penalties hereunder to the Department during the
10second preceding calendar month. The amount to be paid to each
11municipality shall be the amount (not including credit
12memoranda and not including taxes and penalties collected on
13aviation fuel sold on or after December 1, 2019) collected
14hereunder during the second preceding calendar month by the
15Department plus an amount the Department determines is
16necessary to offset any amounts that were erroneously paid to
17a different taxing body, and not including an amount equal to
18the amount of refunds made during the second preceding
19calendar month by the Department on behalf of such
20municipality, and not including any amount that the Department
21determines is necessary to offset any amounts that were
22payable to a different taxing body but were erroneously paid
23to the municipality, and not including any amounts that are
24transferred to the STAR Bonds Revenue Fund, less 1.5% of the
25remainder, which the Department shall transfer into the Tax
26Compliance and Administration Fund. The Department, at the

 

 

SB0157 Enrolled- 426 -LRB102 10128 HLH 16591 b

1time of each monthly disbursement to the municipalities, shall
2prepare and certify to the State Comptroller the amount to be
3transferred into the Tax Compliance and Administration Fund
4under this Section. Within 10 days after receipt by the
5Comptroller of the disbursement certification to the
6municipalities and the Tax Compliance and Administration Fund
7provided for in this Section to be given to the Comptroller by
8the Department, the Comptroller shall cause the orders to be
9drawn for the respective amounts in accordance with the
10directions contained in the certification.
11    In addition to the disbursement required by the preceding
12paragraph and in order to mitigate delays caused by
13distribution procedures, an allocation shall, if requested, be
14made within 10 days after January 14, 1991, and in November of
151991 and each year thereafter, to each municipality that
16received more than $500,000 during the preceding fiscal year,
17(July 1 through June 30) whether collected by the municipality
18or disbursed by the Department as required by this Section.
19Within 10 days after January 14, 1991, participating
20municipalities shall notify the Department in writing of their
21intent to participate. In addition, for the initial
22distribution, participating municipalities shall certify to
23the Department the amounts collected by the municipality for
24each month under its home rule occupation and service
25occupation tax during the period July 1, 1989 through June 30,
261990. The allocation within 10 days after January 14, 1991,

 

 

SB0157 Enrolled- 427 -LRB102 10128 HLH 16591 b

1shall be in an amount equal to the monthly average of these
2amounts, excluding the 2 months of highest receipts. The
3monthly average for the period of July 1, 1990 through June 30,
41991 will be determined as follows: the amounts collected by
5the municipality under its home rule occupation and service
6occupation tax during the period of July 1, 1990 through
7September 30, 1990, plus amounts collected by the Department
8and paid to such municipality through June 30, 1991, excluding
9the 2 months of highest receipts. The monthly average for each
10subsequent period of July 1 through June 30 shall be an amount
11equal to the monthly distribution made to each such
12municipality under the preceding paragraph during this period,
13excluding the 2 months of highest receipts. The distribution
14made in November 1991 and each year thereafter under this
15paragraph and the preceding paragraph shall be reduced by the
16amount allocated and disbursed under this paragraph in the
17preceding period of July 1 through June 30. The Department
18shall prepare and certify to the Comptroller for disbursement
19the allocations made in accordance with this paragraph.
20    For the purpose of determining the local governmental unit
21whose tax is applicable, a retail sale by a producer of coal or
22other mineral mined in Illinois is a sale at retail at the
23place where the coal or other mineral mined in Illinois is
24extracted from the earth. This paragraph does not apply to
25coal or other mineral when it is delivered or shipped by the
26seller to the purchaser at a point outside Illinois so that the

 

 

SB0157 Enrolled- 428 -LRB102 10128 HLH 16591 b

1sale is exempt under the United States Constitution as a sale
2in interstate or foreign commerce.
3    Nothing in this Section shall be construed to authorize a
4municipality to impose a tax upon the privilege of engaging in
5any business which under the Constitution of the United States
6may not be made the subject of taxation by this State.
7    An ordinance or resolution imposing or discontinuing a tax
8hereunder or effecting a change in the rate thereof shall be
9adopted and a certified copy thereof filed with the Department
10on or before the first day of June, whereupon the Department
11shall proceed to administer and enforce this Section as of the
12first day of September next following the adoption and filing.
13Beginning January 1, 1992, an ordinance or resolution imposing
14or discontinuing the tax hereunder or effecting a change in
15the rate thereof shall be adopted and a certified copy thereof
16filed with the Department on or before the first day of July,
17whereupon the Department shall proceed to administer and
18enforce this Section as of the first day of October next
19following such adoption and filing. Beginning January 1, 1993,
20an ordinance or resolution imposing or discontinuing the tax
21hereunder or effecting a change in the rate thereof shall be
22adopted and a certified copy thereof filed with the Department
23on or before the first day of October, whereupon the
24Department shall proceed to administer and enforce this
25Section as of the first day of January next following the
26adoption and filing. However, a municipality located in a

 

 

SB0157 Enrolled- 429 -LRB102 10128 HLH 16591 b

1county with a population in excess of 3,000,000 that elected
2to become a home rule unit at the general primary election in
31994 may adopt an ordinance or resolution imposing the tax
4under this Section and file a certified copy of the ordinance
5or resolution with the Department on or before July 1, 1994.
6The Department shall then proceed to administer and enforce
7this Section as of October 1, 1994. Beginning April 1, 1998, an
8ordinance or resolution imposing or discontinuing the tax
9hereunder or effecting a change in the rate thereof shall
10either (i) be adopted and a certified copy thereof filed with
11the Department on or before the first day of April, whereupon
12the Department shall proceed to administer and enforce this
13Section as of the first day of July next following the adoption
14and filing; or (ii) be adopted and a certified copy thereof
15filed with the Department on or before the first day of
16October, whereupon the Department shall proceed to administer
17and enforce this Section as of the first day of January next
18following the adoption and filing.
19    When certifying the amount of a monthly disbursement to a
20municipality under this Section, the Department shall increase
21or decrease the amount by an amount necessary to offset any
22misallocation of previous disbursements. The offset amount
23shall be the amount erroneously disbursed within the previous
246 months from the time a misallocation is discovered.
25    Any unobligated balance remaining in the Municipal
26Retailers' Occupation Tax Fund on December 31, 1989, which

 

 

SB0157 Enrolled- 430 -LRB102 10128 HLH 16591 b

1fund was abolished by Public Act 85-1135, and all receipts of
2municipal tax as a result of audits of liability periods prior
3to January 1, 1990, shall be paid into the Local Government Tax
4Fund for distribution as provided by this Section prior to the
5enactment of Public Act 85-1135. All receipts of municipal tax
6as a result of an assessment not arising from an audit, for
7liability periods prior to January 1, 1990, shall be paid into
8the Local Government Tax Fund for distribution before July 1,
91990, as provided by this Section prior to the enactment of
10Public Act 85-1135; and on and after July 1, 1990, all such
11receipts shall be distributed as provided in Section 6z-18 of
12the State Finance Act.
13    As used in this Section, "municipal" and "municipality"
14means a city, village or incorporated town, including an
15incorporated town that has superseded a civil township.
16    This Section shall be known and may be cited as the Home
17Rule Municipal Retailers' Occupation Tax Act.
18(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
19100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
207-12-19; 101-604, eff. 12-13-19.)
 
21    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
22    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
23Occupation Tax Act. The corporate authorities of a non-home
24rule municipality may impose a tax upon all persons engaged in
25the business of selling tangible personal property, other than

 

 

SB0157 Enrolled- 431 -LRB102 10128 HLH 16591 b

1on an item of tangible personal property which is titled and
2registered by an agency of this State's Government, at retail
3in the municipality for expenditure on public infrastructure
4or for property tax relief or both as defined in Section
58-11-1.2 if approved by referendum as provided in Section
68-11-1.1, of the gross receipts from such sales made in the
7course of such business. If the tax is approved by referendum
8on or after July 14, 2010 (the effective date of Public Act
996-1057), the corporate authorities of a non-home rule
10municipality may, until July 1, 2030, use the proceeds of the
11tax for expenditure on municipal operations, in addition to or
12in lieu of any expenditure on public infrastructure or for
13property tax relief. The tax imposed may not be more than 1%
14and may be imposed only in 1/4% increments. The tax may not be
15imposed on tangible personal property taxed at the 1% rate
16under the Retailers' Occupation Tax Act (or at the 0% rate
17imposed under this amendatory Act of the 102nd General
18Assembly). Beginning December 1, 2019, this tax is not imposed
19on sales of aviation fuel unless the tax revenue is expended
20for airport-related purposes. If a municipality does not have
21an airport-related purpose to which it dedicates aviation fuel
22tax revenue, then aviation fuel is excluded from the tax. Each
23municipality must comply with the certification requirements
24for airport-related purposes under Section 2-22 of the
25Retailers' Occupation Tax Act. For purposes of this Section,
26"airport-related purposes" has the meaning ascribed in Section

 

 

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16z-20.2 of the State Finance Act. This exclusion for aviation
2fuel only applies for so long as the revenue use requirements
3of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
4municipality. The tax imposed by a municipality pursuant to
5this Section and all civil penalties that may be assessed as an
6incident thereof shall be collected and enforced by the State
7Department of Revenue. The certificate of registration which
8is issued by the Department to a retailer under the Retailers'
9Occupation Tax Act shall permit such retailer to engage in a
10business which is taxable under any ordinance or resolution
11enacted pursuant to this Section without registering
12separately with the Department under such ordinance or
13resolution or under this Section. The Department shall have
14full power to administer and enforce this Section; to collect
15all taxes and penalties due hereunder; to dispose of taxes and
16penalties so collected in the manner hereinafter provided, and
17to determine all rights to credit memoranda, arising on
18account of the erroneous payment of tax or penalty hereunder.
19In the administration of, and compliance with, this Section,
20the Department and persons who are subject to this Section
21shall have the same rights, remedies, privileges, immunities,
22powers and duties, and be subject to the same conditions,
23restrictions, limitations, penalties and definitions of terms,
24and employ the same modes of procedure, as are prescribed in
25Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in
26respect to all provisions therein other than the State rate of

 

 

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1tax), 2c, 3 (except as to the disposition of taxes and
2penalties collected, and except that the retailer's discount
3is not allowed for taxes paid on aviation fuel that are subject
4to the revenue use requirements of 49 U.S.C. 47107(b) and 49
5U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
65k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
7Retailers' Occupation Tax Act and Section 3-7 of the Uniform
8Penalty and Interest Act as fully as if those provisions were
9set forth herein.
10    No municipality may impose a tax under this Section unless
11the municipality also imposes a tax at the same rate under
12Section 8-11-1.4 of this Code.
13    Persons subject to any tax imposed pursuant to the
14authority granted in this Section may reimburse themselves for
15their seller's tax liability hereunder by separately stating
16such tax as an additional charge, which charge may be stated in
17combination, in a single amount, with State tax which sellers
18are required to collect under the Use Tax Act, pursuant to such
19bracket schedules as the Department may prescribe.
20    Whenever the Department determines that a refund should be
21made under this Section to a claimant instead of issuing a
22credit memorandum, the Department shall notify the State
23Comptroller, who shall cause the order to be drawn for the
24amount specified, and to the person named, in such
25notification from the Department. Such refund shall be paid by
26the State Treasurer out of the non-home rule municipal

 

 

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1retailers' occupation tax fund or the Local Government
2Aviation Trust Fund, as appropriate.
3    Except as otherwise provided, the Department shall
4forthwith pay over to the State Treasurer, ex officio, as
5trustee, all taxes and penalties collected hereunder for
6deposit into the Non-Home Rule Municipal Retailers' Occupation
7Tax Fund. Taxes and penalties collected on aviation fuel sold
8on or after December 1, 2019, shall be immediately paid over by
9the Department to the State Treasurer, ex officio, as trustee,
10for deposit into the Local Government Aviation Trust Fund. The
11Department shall only pay moneys into the Local Government
12Aviation Trust Fund under this Section for so long as the
13revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1447133 are binding on the municipality.
15    As soon as possible after the first day of each month,
16beginning January 1, 2011, upon certification of the
17Department of Revenue, the Comptroller shall order
18transferred, and the Treasurer shall transfer, to the STAR
19Bonds Revenue Fund the local sales tax increment, as defined
20in the Innovation Development and Economy Act, collected under
21this Section during the second preceding calendar month for
22sales within a STAR bond district.
23    After the monthly transfer to the STAR Bonds Revenue Fund,
24on or before the 25th day of each calendar month, the
25Department shall prepare and certify to the Comptroller the
26disbursement of stated sums of money to named municipalities,

 

 

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1the municipalities to be those from which retailers have paid
2taxes or penalties hereunder to the Department during the
3second preceding calendar month. The amount to be paid to each
4municipality shall be the amount (not including credit
5memoranda and not including taxes and penalties collected on
6aviation fuel sold on or after December 1, 2019) collected
7hereunder during the second preceding calendar month by the
8Department plus an amount the Department determines is
9necessary to offset any amounts which were erroneously paid to
10a different taxing body, and not including an amount equal to
11the amount of refunds made during the second preceding
12calendar month by the Department on behalf of such
13municipality, and not including any amount which the
14Department determines is necessary to offset any amounts which
15were payable to a different taxing body but were erroneously
16paid to the municipality, and not including any amounts that
17are transferred to the STAR Bonds Revenue Fund, less 1.5% of
18the remainder, which the Department shall transfer into the
19Tax Compliance and Administration Fund. The Department, at the
20time of each monthly disbursement to the municipalities, shall
21prepare and certify to the State Comptroller the amount to be
22transferred into the Tax Compliance and Administration Fund
23under this Section. Within 10 days after receipt, by the
24Comptroller, of the disbursement certification to the
25municipalities and the Tax Compliance and Administration Fund
26provided for in this Section to be given to the Comptroller by

 

 

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1the Department, the Comptroller shall cause the orders to be
2drawn for the respective amounts in accordance with the
3directions contained in such certification.
4    For the purpose of determining the local governmental unit
5whose tax is applicable, a retail sale, by a producer of coal
6or other mineral mined in Illinois, is a sale at retail at the
7place where the coal or other mineral mined in Illinois is
8extracted from the earth. This paragraph does not apply to
9coal or other mineral when it is delivered or shipped by the
10seller to the purchaser at a point outside Illinois so that the
11sale is exempt under the Federal Constitution as a sale in
12interstate or foreign commerce.
13    Nothing in this Section shall be construed to authorize a
14municipality to impose a tax upon the privilege of engaging in
15any business which under the constitution of the United States
16may not be made the subject of taxation by this State.
17    When certifying the amount of a monthly disbursement to a
18municipality under this Section, the Department shall increase
19or decrease such amount by an amount necessary to offset any
20misallocation of previous disbursements. The offset amount
21shall be the amount erroneously disbursed within the previous
226 months from the time a misallocation is discovered.
23    The Department of Revenue shall implement Public Act
2491-649 so as to collect the tax on and after January 1, 2002.
25    As used in this Section, "municipal" and "municipality"
26mean a city, village, or incorporated town, including an

 

 

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1incorporated town which has superseded a civil township.
2    This Section shall be known and may be cited as the
3Non-Home Rule Municipal Retailers' Occupation Tax Act.
4(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
5100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-47, eff.
61-1-20; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19.)
 
7    (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)
8    Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
9Tax Act. The corporate authorities of a non-home rule
10municipality may impose a tax upon all persons engaged, in
11such municipality, in the business of making sales of service
12for expenditure on public infrastructure or for property tax
13relief or both as defined in Section 8-11-1.2 if approved by
14referendum as provided in Section 8-11-1.1, of the selling
15price of all tangible personal property transferred by such
16servicemen either in the form of tangible personal property or
17in the form of real estate as an incident to a sale of service.
18If the tax is approved by referendum on or after July 14, 2010
19(the effective date of Public Act 96-1057), the corporate
20authorities of a non-home rule municipality may, until
21December 31, 2020, use the proceeds of the tax for expenditure
22on municipal operations, in addition to or in lieu of any
23expenditure on public infrastructure or for property tax
24relief. The tax imposed may not be more than 1% and may be
25imposed only in 1/4% increments. The tax may not be imposed on

 

 

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1tangible personal property taxed at the 1% rate under the
2Service Occupation Tax Act (or at the 0% rate imposed under
3this amendatory Act of the 102nd General Assembly). Beginning
4December 1, 2019, this tax is not imposed on sales of aviation
5fuel unless the tax revenue is expended for airport-related
6purposes. If a municipality does not have an airport-related
7purpose to which it dedicates aviation fuel tax revenue, then
8aviation fuel is excluded from the tax. Each municipality must
9comply with the certification requirements for airport-related
10purposes under Section 2-22 of the Retailers' Occupation Tax
11Act. For purposes of this Section, "airport-related purposes"
12has the meaning ascribed in Section 6z-20.2 of the State
13Finance Act. This exclusion for aviation fuel only applies for
14so long as the revenue use requirements of 49 U.S.C. 47107(b)
15and 49 U.S.C. 47133 are binding on the municipality. The tax
16imposed by a municipality pursuant to this Section and all
17civil penalties that may be assessed as an incident thereof
18shall be collected and enforced by the State Department of
19Revenue. The certificate of registration which is issued by
20the Department to a retailer under the Retailers' Occupation
21Tax Act or under the Service Occupation Tax Act shall permit
22such registrant to engage in a business which is taxable under
23any ordinance or resolution enacted pursuant to this Section
24without registering separately with the Department under such
25ordinance or resolution or under this Section. The Department
26shall have full power to administer and enforce this Section;

 

 

SB0157 Enrolled- 439 -LRB102 10128 HLH 16591 b

1to collect all taxes and penalties due hereunder; to dispose
2of taxes and penalties so collected in the manner hereinafter
3provided, and to determine all rights to credit memoranda
4arising on account of the erroneous payment of tax or penalty
5hereunder. In the administration of, and compliance with, this
6Section the Department and persons who are subject to this
7Section shall have the same rights, remedies, privileges,
8immunities, powers and duties, and be subject to the same
9conditions, restrictions, limitations, penalties and
10definitions of terms, and employ the same modes of procedure,
11as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
12respect to all provisions therein other than the State rate of
13tax), 4 (except that the reference to the State shall be to the
14taxing municipality), 5, 7, 8 (except that the jurisdiction to
15which the tax shall be a debt to the extent indicated in that
16Section 8 shall be the taxing municipality), 9 (except as to
17the disposition of taxes and penalties collected, and except
18that the returned merchandise credit for this municipal tax
19may not be taken against any State tax, and except that the
20retailer's discount is not allowed for taxes paid on aviation
21fuel that are subject to the revenue use requirements of 49
22U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except the
23reference therein to Section 2b of the Retailers' Occupation
24Tax Act), 13 (except that any reference to the State shall mean
25the taxing municipality), the first paragraph of Section 15,
2616, 17, 18, 19 and 20 of the Service Occupation Tax Act and

 

 

SB0157 Enrolled- 440 -LRB102 10128 HLH 16591 b

1Section 3-7 of the Uniform Penalty and Interest Act, as fully
2as if those provisions were set forth herein.
3    No municipality may impose a tax under this Section unless
4the municipality also imposes a tax at the same rate under
5Section 8-11-1.3 of this Code.
6    Persons subject to any tax imposed pursuant to the
7authority granted in this Section may reimburse themselves for
8their serviceman's tax liability hereunder by separately
9stating such tax as an additional charge, which charge may be
10stated in combination, in a single amount, with State tax
11which servicemen are authorized to collect under the Service
12Use Tax Act, pursuant to such bracket schedules as the
13Department may prescribe.
14    Whenever the Department determines that a refund should be
15made under this Section to a claimant instead of issuing
16credit memorandum, the Department shall notify the State
17Comptroller, who shall cause the order to be drawn for the
18amount specified, and to the person named, in such
19notification from the Department. Such refund shall be paid by
20the State Treasurer out of the municipal retailers' occupation
21tax fund or the Local Government Aviation Trust Fund, as
22appropriate.
23    Except as otherwise provided in this paragraph, the
24Department shall forthwith pay over to the State Treasurer, ex
25officio, as trustee, all taxes and penalties collected
26hereunder for deposit into the municipal retailers' occupation

 

 

SB0157 Enrolled- 441 -LRB102 10128 HLH 16591 b

1tax fund. Taxes and penalties collected on aviation fuel sold
2on or after December 1, 2019, shall be immediately paid over by
3the Department to the State Treasurer, ex officio, as trustee,
4for deposit into the Local Government Aviation Trust Fund. The
5Department shall only pay moneys into the Local Government
6Aviation Trust Fund under this Section for so long as the
7revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
847133 are binding on the municipality.
9    As soon as possible after the first day of each month,
10beginning January 1, 2011, upon certification of the
11Department of Revenue, the Comptroller shall order
12transferred, and the Treasurer shall transfer, to the STAR
13Bonds Revenue Fund the local sales tax increment, as defined
14in the Innovation Development and Economy Act, collected under
15this Section during the second preceding calendar month for
16sales within a STAR bond district.
17    After the monthly transfer to the STAR Bonds Revenue Fund,
18on or before the 25th day of each calendar month, the
19Department shall prepare and certify to the Comptroller the
20disbursement of stated sums of money to named municipalities,
21the municipalities to be those from which suppliers and
22servicemen have paid taxes or penalties hereunder to the
23Department during the second preceding calendar month. The
24amount to be paid to each municipality shall be the amount (not
25including credit memoranda and not including taxes and
26penalties collected on aviation fuel sold on or after December

 

 

SB0157 Enrolled- 442 -LRB102 10128 HLH 16591 b

11, 2019) collected hereunder during the second preceding
2calendar month by the Department, and not including an amount
3equal to the amount of refunds made during the second
4preceding calendar month by the Department on behalf of such
5municipality, and not including any amounts that are
6transferred to the STAR Bonds Revenue Fund, less 1.5% of the
7remainder, which the Department shall transfer into the Tax
8Compliance and Administration Fund. The Department, at the
9time of each monthly disbursement to the municipalities, shall
10prepare and certify to the State Comptroller the amount to be
11transferred into the Tax Compliance and Administration Fund
12under this Section. Within 10 days after receipt, by the
13Comptroller, of the disbursement certification to the
14municipalities, the General Revenue Fund, and the Tax
15Compliance and Administration Fund provided for in this
16Section to be given to the Comptroller by the Department, the
17Comptroller shall cause the orders to be drawn for the
18respective amounts in accordance with the directions contained
19in such certification.
20    The Department of Revenue shall implement Public Act
2191-649 so as to collect the tax on and after January 1, 2002.
22    Nothing in this Section shall be construed to authorize a
23municipality to impose a tax upon the privilege of engaging in
24any business which under the constitution of the United States
25may not be made the subject of taxation by this State.
26    As used in this Section, "municipal" or "municipality"

 

 

SB0157 Enrolled- 443 -LRB102 10128 HLH 16591 b

1means or refers to a city, village or incorporated town,
2including an incorporated town which has superseded a civil
3township.
4    This Section shall be known and may be cited as the
5"Non-Home Rule Municipal Service Occupation Tax Act".
6(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
7100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
87-12-19; 101-604, eff. 12-13-19.)
 
9    (65 ILCS 5/8-11-1.6)
10    Sec. 8-11-1.6. Non-home rule municipal retailers'
11occupation tax; municipalities between 20,000 and 25,000. The
12corporate authorities of a non-home rule municipality with a
13population of more than 20,000 but less than 25,000 that has,
14prior to January 1, 1987, established a Redevelopment Project
15Area that has been certified as a State Sales Tax Boundary and
16has issued bonds or otherwise incurred indebtedness to pay for
17costs in excess of $5,000,000, which is secured in part by a
18tax increment allocation fund, in accordance with the
19provisions of Division 11-74.4 of this Code may, by passage of
20an ordinance, impose a tax upon all persons engaged in the
21business of selling tangible personal property, other than on
22an item of tangible personal property that is titled and
23registered by an agency of this State's Government, at retail
24in the municipality. This tax may not be imposed on tangible
25personal property taxed at the 1% rate under the Retailers'

 

 

SB0157 Enrolled- 444 -LRB102 10128 HLH 16591 b

1Occupation Tax Act (or at the 0% rate imposed under this
2amendatory Act of the 102nd General Assembly). Beginning
3December 1, 2019, this tax is not imposed on sales of aviation
4fuel unless the tax revenue is expended for airport-related
5purposes. If a municipality does not have an airport-related
6purpose to which it dedicates aviation fuel tax revenue, then
7aviation fuel is excluded from the tax. Each municipality must
8comply with the certification requirements for airport-related
9purposes under Section 2-22 of the Retailers' Occupation Tax
10Act. For purposes of this Section, "airport-related purposes"
11has the meaning ascribed in Section 6z-20.2 of the State
12Finance Act. This exclusion for aviation fuel only applies for
13so long as the revenue use requirements of 49 U.S.C. 47107(b)
14and 49 U.S.C. 47133 are binding on the municipality. If
15imposed, the tax shall only be imposed in .25% increments of
16the gross receipts from such sales made in the course of
17business. Any tax imposed by a municipality under this Section
18and all civil penalties that may be assessed as an incident
19thereof shall be collected and enforced by the State
20Department of Revenue. An ordinance imposing a tax hereunder
21or effecting a change in the rate thereof shall be adopted and
22a certified copy thereof filed with the Department on or
23before the first day of October, whereupon the Department
24shall proceed to administer and enforce this Section as of the
25first day of January next following such adoption and filing.
26The certificate of registration that is issued by the

 

 

SB0157 Enrolled- 445 -LRB102 10128 HLH 16591 b

1Department to a retailer under the Retailers' Occupation Tax
2Act shall permit the retailer to engage in a business that is
3taxable under any ordinance or resolution enacted under this
4Section without registering separately with the Department
5under the ordinance or resolution or under this Section. The
6Department shall have full power to administer and enforce
7this Section, to collect all taxes and penalties due
8hereunder, to dispose of taxes and penalties so collected in
9the manner hereinafter provided, and to determine all rights
10to credit memoranda, arising on account of the erroneous
11payment of tax or penalty hereunder. In the administration of,
12and compliance with this Section, the Department and persons
13who are subject to this Section shall have the same rights,
14remedies, privileges, immunities, powers, and duties, and be
15subject to the same conditions, restrictions, limitations,
16penalties, and definitions of terms, and employ the same modes
17of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
181e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
19therein other than the State rate of tax), 2c, 3 (except as to
20the disposition of taxes and penalties collected, and except
21that the retailer's discount is not allowed for taxes paid on
22aviation fuel that are subject to the revenue use requirements
23of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
245d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
2510, 11, 12 and 13 of the Retailers' Occupation Tax Act and
26Section 3-7 of the Uniform Penalty and Interest Act as fully as

 

 

SB0157 Enrolled- 446 -LRB102 10128 HLH 16591 b

1if those provisions were set forth herein.
2    A tax may not be imposed by a municipality under this
3Section unless the municipality also imposes a tax at the same
4rate under Section 8-11-1.7 of this Act.
5    Persons subject to any tax imposed under the authority
6granted in this Section may reimburse themselves for their
7seller's tax liability hereunder by separately stating the tax
8as an additional charge, which charge may be stated in
9combination, in a single amount, with State tax which sellers
10are required to collect under the Use Tax Act, pursuant to such
11bracket schedules as the Department may prescribe.
12    Whenever the Department determines that a refund should be
13made under this Section to a claimant, instead of issuing a
14credit memorandum, the Department shall notify the State
15Comptroller, who shall cause the order to be drawn for the
16amount specified, and to the person named in the notification
17from the Department. The refund shall be paid by the State
18Treasurer out of the Non-Home Rule Municipal Retailers'
19Occupation Tax Fund, which is hereby created or the Local
20Government Aviation Trust Fund, as appropriate.
21    Except as otherwise provided in this paragraph, the
22Department shall forthwith pay over to the State Treasurer, ex
23officio, as trustee, all taxes and penalties collected
24hereunder for deposit into the Non-Home Rule Municipal
25Retailers' Occupation Tax Fund. Taxes and penalties collected
26on aviation fuel sold on or after December 1, 2019, shall be

 

 

SB0157 Enrolled- 447 -LRB102 10128 HLH 16591 b

1immediately paid over by the Department to the State
2Treasurer, ex officio, as trustee, for deposit into the Local
3Government Aviation Trust Fund. The Department shall only pay
4moneys into the Local Government Aviation Trust Fund under
5this Section for so long as the revenue use requirements of 49
6U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
7municipality.
8    As soon as possible after the first day of each month,
9beginning January 1, 2011, upon certification of the
10Department of Revenue, the Comptroller shall order
11transferred, and the Treasurer shall transfer, to the STAR
12Bonds Revenue Fund the local sales tax increment, as defined
13in the Innovation Development and Economy Act, collected under
14this Section during the second preceding calendar month for
15sales within a STAR bond district.
16    After the monthly transfer to the STAR Bonds Revenue Fund,
17on or before the 25th day of each calendar month, the
18Department shall prepare and certify to the Comptroller the
19disbursement of stated sums of money to named municipalities,
20the municipalities to be those from which retailers have paid
21taxes or penalties hereunder to the Department during the
22second preceding calendar month. The amount to be paid to each
23municipality shall be the amount (not including credit
24memoranda and not including taxes and penalties collected on
25aviation fuel sold on or after December 1, 2019) collected
26hereunder during the second preceding calendar month by the

 

 

SB0157 Enrolled- 448 -LRB102 10128 HLH 16591 b

1Department plus an amount the Department determines is
2necessary to offset any amounts that were erroneously paid to
3a different taxing body, and not including an amount equal to
4the amount of refunds made during the second preceding
5calendar month by the Department on behalf of the
6municipality, and not including any amount that the Department
7determines is necessary to offset any amounts that were
8payable to a different taxing body but were erroneously paid
9to the municipality, and not including any amounts that are
10transferred to the STAR Bonds Revenue Fund, less 1.5% of the
11remainder, which the Department shall transfer into the Tax
12Compliance and Administration Fund. The Department, at the
13time of each monthly disbursement to the municipalities, shall
14prepare and certify to the State Comptroller the amount to be
15transferred into the Tax Compliance and Administration Fund
16under this Section. Within 10 days after receipt by the
17Comptroller of the disbursement certification to the
18municipalities and the Tax Compliance and Administration Fund
19provided for in this Section to be given to the Comptroller by
20the Department, the Comptroller shall cause the orders to be
21drawn for the respective amounts in accordance with the
22directions contained in the certification.
23    For the purpose of determining the local governmental unit
24whose tax is applicable, a retail sale by a producer of coal or
25other mineral mined in Illinois is a sale at retail at the
26place where the coal or other mineral mined in Illinois is

 

 

SB0157 Enrolled- 449 -LRB102 10128 HLH 16591 b

1extracted from the earth. This paragraph does not apply to
2coal or other mineral when it is delivered or shipped by the
3seller to the purchaser at a point outside Illinois so that the
4sale is exempt under the federal Constitution as a sale in
5interstate or foreign commerce.
6    Nothing in this Section shall be construed to authorize a
7municipality to impose a tax upon the privilege of engaging in
8any business which under the constitution of the United States
9may not be made the subject of taxation by this State.
10    When certifying the amount of a monthly disbursement to a
11municipality under this Section, the Department shall increase
12or decrease the amount by an amount necessary to offset any
13misallocation of previous disbursements. The offset amount
14shall be the amount erroneously disbursed within the previous
156 months from the time a misallocation is discovered.
16    As used in this Section, "municipal" and "municipality"
17means a city, village, or incorporated town, including an
18incorporated town that has superseded a civil township.
19(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
20100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, eff.
216-5-19; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19.)
 
22    (65 ILCS 5/8-11-1.7)
23    Sec. 8-11-1.7. Non-home rule municipal service occupation
24tax; municipalities between 20,000 and 25,000. The corporate
25authorities of a non-home rule municipality with a population

 

 

SB0157 Enrolled- 450 -LRB102 10128 HLH 16591 b

1of more than 20,000 but less than 25,000 as determined by the
2last preceding decennial census that has, prior to January 1,
31987, established a Redevelopment Project Area that has been
4certified as a State Sales Tax Boundary and has issued bonds or
5otherwise incurred indebtedness to pay for costs in excess of
6$5,000,000, which is secured in part by a tax increment
7allocation fund, in accordance with the provisions of Division
811-74.4 of this Code may, by passage of an ordinance, impose a
9tax upon all persons engaged in the municipality in the
10business of making sales of service. If imposed, the tax shall
11only be imposed in .25% increments of the selling price of all
12tangible personal property transferred by such servicemen
13either in the form of tangible personal property or in the form
14of real estate as an incident to a sale of service. This tax
15may not be imposed on tangible personal property taxed at the
161% rate under the Service Occupation Tax Act (or at the 0% rate
17imposed under this amendatory Act of the 102nd General
18Assembly). Beginning December 1, 2019, this tax is not imposed
19on sales of aviation fuel unless the tax revenue is expended
20for airport-related purposes. If a municipality does not have
21an airport-related purpose to which it dedicates aviation fuel
22tax revenue, then aviation fuel is excluded from the tax. Each
23municipality must comply with the certification requirements
24for airport-related purposes under Section 2-22 of the
25Retailers' Occupation Tax Act. For purposes of this Section,
26"airport-related purposes" has the meaning ascribed in Section

 

 

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16z-20.2 of the State Finance Act. This exclusion for aviation
2fuel only applies for so long as the revenue use requirements
3of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
4municipality. The tax imposed by a municipality under this
5Section and all civil penalties that may be assessed as an
6incident thereof shall be collected and enforced by the State
7Department of Revenue. An ordinance imposing a tax hereunder
8or effecting a change in the rate thereof shall be adopted and
9a certified copy thereof filed with the Department on or
10before the first day of October, whereupon the Department
11shall proceed to administer and enforce this Section as of the
12first day of January next following such adoption and filing.
13The certificate of registration that is issued by the
14Department to a retailer under the Retailers' Occupation Tax
15Act or under the Service Occupation Tax Act shall permit the
16registrant to engage in a business that is taxable under any
17ordinance or resolution enacted under this Section without
18registering separately with the Department under the ordinance
19or resolution or under this Section. The Department shall have
20full power to administer and enforce this Section, to collect
21all taxes and penalties due hereunder, to dispose of taxes and
22penalties so collected in a manner hereinafter provided, and
23to determine all rights to credit memoranda arising on account
24of the erroneous payment of tax or penalty hereunder. In the
25administration of and compliance with this Section, the
26Department and persons who are subject to this Section shall

 

 

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1have the same rights, remedies, privileges, immunities,
2powers, and duties, and be subject to the same conditions,
3restrictions, limitations, penalties and definitions of terms,
4and employ the same modes of procedure, as are prescribed in
5Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
6provisions therein other than the State rate of tax), 4
7(except that the reference to the State shall be to the taxing
8municipality), 5, 7, 8 (except that the jurisdiction to which
9the tax shall be a debt to the extent indicated in that Section
108 shall be the taxing municipality), 9 (except as to the
11disposition of taxes and penalties collected, and except that
12the returned merchandise credit for this municipal tax may not
13be taken against any State tax, and except that the retailer's
14discount is not allowed for taxes paid on aviation fuel that
15are subject to the revenue use requirements of 49 U.S.C.
1647107(b) and 49 U.S.C. 47133), 10, 11, 12, (except the
17reference therein to Section 2b of the Retailers' Occupation
18Tax Act), 13 (except that any reference to the State shall mean
19the taxing municipality), the first paragraph of Sections 15,
2016, 17, 18, 19, and 20 of the Service Occupation Tax Act and
21Section 3-7 of the Uniform Penalty and Interest Act, as fully
22as if those provisions were set forth herein.
23    A tax may not be imposed by a municipality under this
24Section unless the municipality also imposes a tax at the same
25rate under Section 8-11-1.6 of this Act.
26    Person subject to any tax imposed under the authority

 

 

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1granted in this Section may reimburse themselves for their
2servicemen's tax liability hereunder by separately stating the
3tax as an additional charge, which charge may be stated in
4combination, in a single amount, with State tax that
5servicemen are authorized to collect under the Service Use Tax
6Act, under such bracket schedules as the Department may
7prescribe.
8    Whenever the Department determines that a refund should be
9made under this Section to a claimant instead of issuing
10credit memorandum, the Department shall notify the State
11Comptroller, who shall cause the order to be drawn for the
12amount specified, and to the person named, in such
13notification from the Department. The refund shall be paid by
14the State Treasurer out of the Non-Home Rule Municipal
15Retailers' Occupation Tax Fund or the Local Government
16Aviation Trust Fund, as appropriate.
17    Except as otherwise provided in this paragraph, the
18Department shall forthwith pay over to the State Treasurer, ex
19officio, as trustee, all taxes and penalties collected
20hereunder for deposit into the Non-Home Rule Municipal
21Retailers' Occupation Tax Fund. Taxes and penalties collected
22on aviation fuel sold on or after December 1, 2019, shall be
23immediately paid over by the Department to the State
24Treasurer, ex officio, as trustee, for deposit into the Local
25Government Aviation Trust Fund. The Department shall only pay
26moneys into the Local Government Aviation Trust Fund under

 

 

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1this Section for so long as the revenue use requirements of 49
2U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
3Municipality.
4    As soon as possible after the first day of each month,
5beginning January 1, 2011, upon certification of the
6Department of Revenue, the Comptroller shall order
7transferred, and the Treasurer shall transfer, to the STAR
8Bonds Revenue Fund the local sales tax increment, as defined
9in the Innovation Development and Economy Act, collected under
10this Section during the second preceding calendar month for
11sales within a STAR bond district.
12    After the monthly transfer to the STAR Bonds Revenue Fund,
13on or before the 25th day of each calendar month, the
14Department shall prepare and certify to the Comptroller the
15disbursement of stated sums of money to named municipalities,
16the municipalities to be those from which suppliers and
17servicemen have paid taxes or penalties hereunder to the
18Department during the second preceding calendar month. The
19amount to be paid to each municipality shall be the amount (not
20including credit memoranda and not including taxes and
21penalties collected on aviation fuel sold on or after December
221, 2019) collected hereunder during the second preceding
23calendar month by the Department, and not including an amount
24equal to the amount of refunds made during the second
25preceding calendar month by the Department on behalf of such
26municipality, and not including any amounts that are

 

 

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1transferred to the STAR Bonds Revenue Fund, less 1.5% of the
2remainder, which the Department shall transfer into the Tax
3Compliance and Administration Fund. The Department, at the
4time of each monthly disbursement to the municipalities, shall
5prepare and certify to the State Comptroller the amount to be
6transferred into the Tax Compliance and Administration Fund
7under this Section. Within 10 days after receipt by the
8Comptroller of the disbursement certification to the
9municipalities, the Tax Compliance and Administration Fund,
10and the General Revenue Fund, provided for in this Section to
11be given to the Comptroller by the Department, the Comptroller
12shall cause the orders to be drawn for the respective amounts
13in accordance with the directions contained in the
14certification.
15    When certifying the amount of a monthly disbursement to a
16municipality under this Section, the Department shall increase
17or decrease the amount by an amount necessary to offset any
18misallocation of previous disbursements. The offset amount
19shall be the amount erroneously disbursed within the previous
206 months from the time a misallocation is discovered.
21    Nothing in this Section shall be construed to authorize a
22municipality to impose a tax upon the privilege of engaging in
23any business which under the constitution of the United States
24may not be made the subject of taxation by this State.
25(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
26100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, eff.

 

 

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16-5-19; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19.)
 
2    (65 ILCS 5/8-11-5)  (from Ch. 24, par. 8-11-5)
3    Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
4Act. The corporate authorities of a home rule municipality may
5impose a tax upon all persons engaged, in such municipality,
6in the business of making sales of service at the same rate of
7tax imposed pursuant to Section 8-11-1, of the selling price
8of all tangible personal property transferred by such
9servicemen either in the form of tangible personal property or
10in the form of real estate as an incident to a sale of service.
11If imposed, such tax shall only be imposed in 1/4% increments.
12On and after September 1, 1991, this additional tax may not be
13imposed on tangible personal property taxed at the 1% rate
14under the Service Retailers' Occupation Tax Act (or at the 0%
15rate imposed under this amendatory Act of the 102nd General
16Assembly). Beginning December 1, 2019, this tax may not be
17imposed on sales of aviation fuel unless the tax revenue is
18expended for airport-related purposes. If a municipality does
19not have an airport-related purpose to which it dedicates
20aviation fuel tax revenue, then aviation fuel shall be
21excluded from tax. Each municipality must comply with the
22certification requirements for airport-related purposes under
23Section 2-22 of the Retailers' Occupation Tax Act. For
24purposes of this Section, "airport-related purposes" has the
25meaning ascribed in Section 6z-20.2 of the State Finance Act.

 

 

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1This exception for aviation fuel only applies for so long as
2the revenue use requirements of 49 U.S.C. 47107(b) and 49
3U.S.C. 47133 are binding on the State. The changes made to this
4Section by this amendatory Act of the 101st General Assembly
5are a denial and limitation of home rule powers and functions
6under subsection (g) of Section 6 of Article VII of the
7Illinois Constitution. The tax imposed by a home rule
8municipality pursuant to this Section and all civil penalties
9that may be assessed as an incident thereof shall be collected
10and enforced by the State Department of Revenue. The
11certificate of registration which is issued by the Department
12to a retailer under the Retailers' Occupation Tax Act or under
13the Service Occupation Tax Act shall permit such registrant to
14engage in a business which is taxable under any ordinance or
15resolution enacted pursuant to this Section without
16registering separately with the Department under such
17ordinance or resolution or under this Section. The Department
18shall have full power to administer and enforce this Section;
19to collect all taxes and penalties due hereunder; to dispose
20of taxes and penalties so collected in the manner hereinafter
21provided, and to determine all rights to credit memoranda
22arising on account of the erroneous payment of tax or penalty
23hereunder. In the administration of, and compliance with, this
24Section the Department and persons who are subject to this
25Section shall have the same rights, remedies, privileges,
26immunities, powers and duties, and be subject to the same

 

 

SB0157 Enrolled- 458 -LRB102 10128 HLH 16591 b

1conditions, restrictions, limitations, penalties and
2definitions of terms, and employ the same modes of procedure,
3as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
4respect to all provisions therein other than the State rate of
5tax), 4 (except that the reference to the State shall be to the
6taxing municipality), 5, 7, 8 (except that the jurisdiction to
7which the tax shall be a debt to the extent indicated in that
8Section 8 shall be the taxing municipality), 9 (except as to
9the disposition of taxes and penalties collected, and except
10that the returned merchandise credit for this municipal tax
11may not be taken against any State tax, and except that the
12retailer's discount is not allowed for taxes paid on aviation
13fuel that are subject to the revenue use requirements of 49
14U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except the
15reference therein to Section 2b of the Retailers' Occupation
16Tax Act), 13 (except that any reference to the State shall mean
17the taxing municipality), the first paragraph of Section 15,
1816, 17 (except that credit memoranda issued hereunder may not
19be used to discharge any State tax liability), 18, 19 and 20 of
20the Service Occupation Tax Act and Section 3-7 of the Uniform
21Penalty and Interest Act, as fully as if those provisions were
22set forth herein.
23    No tax may be imposed by a home rule municipality pursuant
24to this Section unless such municipality also imposes a tax at
25the same rate pursuant to Section 8-11-1 of this Act.
26    Persons subject to any tax imposed pursuant to the

 

 

SB0157 Enrolled- 459 -LRB102 10128 HLH 16591 b

1authority granted in this Section may reimburse themselves for
2their serviceman's tax liability hereunder by separately
3stating such tax as an additional charge, which charge may be
4stated in combination, in a single amount, with State tax
5which servicemen are authorized to collect under the Service
6Use Tax Act, pursuant to such bracket schedules as the
7Department may prescribe.
8    Whenever the Department determines that a refund should be
9made under this Section to a claimant instead of issuing
10credit memorandum, the Department shall notify the State
11Comptroller, who shall cause the order to be drawn for the
12amount specified, and to the person named, in such
13notification from the Department. Such refund shall be paid by
14the State Treasurer out of the home rule municipal retailers'
15occupation tax fund or the Local Government Aviation Trust
16Fund, as appropriate.
17    Except as otherwise provided in this paragraph, the
18Department shall forthwith pay over to the State Treasurer, ex
19officio, as trustee, all taxes and penalties collected
20hereunder for deposit into the Home Rule Municipal Retailers'
21Occupation Tax Fund. Taxes and penalties collected on aviation
22fuel sold on or after December 1, 2019, shall be immediately
23paid over by the Department to the State Treasurer, ex
24officio, as trustee, for deposit into the Local Government
25Aviation Trust Fund. The Department shall only pay moneys into
26the Local Government Aviation Trust Fund under this Section

 

 

SB0157 Enrolled- 460 -LRB102 10128 HLH 16591 b

1for so long as the revenue use requirements of 49 U.S.C.
247107(b) and 49 U.S.C. 47133 are binding on the municipality.
3    As soon as possible after the first day of each month,
4beginning January 1, 2011, upon certification of the
5Department of Revenue, the Comptroller shall order
6transferred, and the Treasurer shall transfer, to the STAR
7Bonds Revenue Fund the local sales tax increment, as defined
8in the Innovation Development and Economy Act, collected under
9this Section during the second preceding calendar month for
10sales within a STAR bond district.
11    After the monthly transfer to the STAR Bonds Revenue Fund,
12on or before the 25th day of each calendar month, the
13Department shall prepare and certify to the Comptroller the
14disbursement of stated sums of money to named municipalities,
15the municipalities to be those from which suppliers and
16servicemen have paid taxes or penalties hereunder to the
17Department during the second preceding calendar month. The
18amount to be paid to each municipality shall be the amount (not
19including credit memoranda and not including taxes and
20penalties collected on aviation fuel sold on or after December
211, 2019) collected hereunder during the second preceding
22calendar month by the Department, and not including an amount
23equal to the amount of refunds made during the second
24preceding calendar month by the Department on behalf of such
25municipality, and not including any amounts that are
26transferred to the STAR Bonds Revenue Fund, less 1.5% of the

 

 

SB0157 Enrolled- 461 -LRB102 10128 HLH 16591 b

1remainder, which the Department shall transfer into the Tax
2Compliance and Administration Fund. The Department, at the
3time of each monthly disbursement to the municipalities, shall
4prepare and certify to the State Comptroller the amount to be
5transferred into the Tax Compliance and Administration Fund
6under this Section. Within 10 days after receipt, by the
7Comptroller, of the disbursement certification to the
8municipalities and the Tax Compliance and Administration Fund
9provided for in this Section to be given to the Comptroller by
10the Department, the Comptroller shall cause the orders to be
11drawn for the respective amounts in accordance with the
12directions contained in such certification.
13    In addition to the disbursement required by the preceding
14paragraph and in order to mitigate delays caused by
15distribution procedures, an allocation shall, if requested, be
16made within 10 days after January 14, 1991, and in November of
171991 and each year thereafter, to each municipality that
18received more than $500,000 during the preceding fiscal year,
19(July 1 through June 30) whether collected by the municipality
20or disbursed by the Department as required by this Section.
21Within 10 days after January 14, 1991, participating
22municipalities shall notify the Department in writing of their
23intent to participate. In addition, for the initial
24distribution, participating municipalities shall certify to
25the Department the amounts collected by the municipality for
26each month under its home rule occupation and service

 

 

SB0157 Enrolled- 462 -LRB102 10128 HLH 16591 b

1occupation tax during the period July 1, 1989 through June 30,
21990. The allocation within 10 days after January 14, 1991,
3shall be in an amount equal to the monthly average of these
4amounts, excluding the 2 months of highest receipts. Monthly
5average for the period of July 1, 1990 through June 30, 1991
6will be determined as follows: the amounts collected by the
7municipality under its home rule occupation and service
8occupation tax during the period of July 1, 1990 through
9September 30, 1990, plus amounts collected by the Department
10and paid to such municipality through June 30, 1991, excluding
11the 2 months of highest receipts. The monthly average for each
12subsequent period of July 1 through June 30 shall be an amount
13equal to the monthly distribution made to each such
14municipality under the preceding paragraph during this period,
15excluding the 2 months of highest receipts. The distribution
16made in November 1991 and each year thereafter under this
17paragraph and the preceding paragraph shall be reduced by the
18amount allocated and disbursed under this paragraph in the
19preceding period of July 1 through June 30. The Department
20shall prepare and certify to the Comptroller for disbursement
21the allocations made in accordance with this paragraph.
22    Nothing in this Section shall be construed to authorize a
23municipality to impose a tax upon the privilege of engaging in
24any business which under the constitution of the United States
25may not be made the subject of taxation by this State.
26    An ordinance or resolution imposing or discontinuing a tax

 

 

SB0157 Enrolled- 463 -LRB102 10128 HLH 16591 b

1hereunder or effecting a change in the rate thereof shall be
2adopted and a certified copy thereof filed with the Department
3on or before the first day of June, whereupon the Department
4shall proceed to administer and enforce this Section as of the
5first day of September next following such adoption and
6filing. Beginning January 1, 1992, an ordinance or resolution
7imposing or discontinuing the tax hereunder or effecting a
8change in the rate thereof shall be adopted and a certified
9copy thereof filed with the Department on or before the first
10day of July, whereupon the Department shall proceed to
11administer and enforce this Section as of the first day of
12October next following such adoption and filing. Beginning
13January 1, 1993, an ordinance or resolution imposing or
14discontinuing the tax hereunder or effecting a change in the
15rate thereof shall be adopted and a certified copy thereof
16filed with the Department on or before the first day of
17October, whereupon the Department shall proceed to administer
18and enforce this Section as of the first day of January next
19following such adoption and filing. However, a municipality
20located in a county with a population in excess of 3,000,000
21that elected to become a home rule unit at the general primary
22election in 1994 may adopt an ordinance or resolution imposing
23the tax under this Section and file a certified copy of the
24ordinance or resolution with the Department on or before July
251, 1994. The Department shall then proceed to administer and
26enforce this Section as of October 1, 1994. Beginning April 1,

 

 

SB0157 Enrolled- 464 -LRB102 10128 HLH 16591 b

11998, an ordinance or resolution imposing or discontinuing the
2tax hereunder or effecting a change in the rate thereof shall
3either (i) be adopted and a certified copy thereof filed with
4the Department on or before the first day of April, whereupon
5the Department shall proceed to administer and enforce this
6Section as of the first day of July next following the adoption
7and filing; or (ii) be adopted and a certified copy thereof
8filed with the Department on or before the first day of
9October, whereupon the Department shall proceed to administer
10and enforce this Section as of the first day of January next
11following the adoption and filing.
12    Any unobligated balance remaining in the Municipal
13Retailers' Occupation Tax Fund on December 31, 1989, which
14fund was abolished by Public Act 85-1135, and all receipts of
15municipal tax as a result of audits of liability periods prior
16to January 1, 1990, shall be paid into the Local Government Tax
17Fund, for distribution as provided by this Section prior to
18the enactment of Public Act 85-1135. All receipts of municipal
19tax as a result of an assessment not arising from an audit, for
20liability periods prior to January 1, 1990, shall be paid into
21the Local Government Tax Fund for distribution before July 1,
221990, as provided by this Section prior to the enactment of
23Public Act 85-1135, and on and after July 1, 1990, all such
24receipts shall be distributed as provided in Section 6z-18 of
25the State Finance Act.
26    As used in this Section, "municipal" and "municipality"

 

 

SB0157 Enrolled- 465 -LRB102 10128 HLH 16591 b

1means a city, village or incorporated town, including an
2incorporated town which has superseded a civil township.
3    This Section shall be known and may be cited as the Home
4Rule Municipal Service Occupation Tax Act.
5(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
6100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
77-12-19; 101-604, eff. 12-13-19.)
 
8    (65 ILCS 5/11-74.3-6)
9    Sec. 11-74.3-6. Business district revenue and obligations;
10business district tax allocation fund.
11    (a) If the corporate authorities of a municipality have
12approved a business district plan, have designated a business
13district, and have elected to impose a tax by ordinance
14pursuant to subsection (10) or (11) of Section 11-74.3-3, then
15each year after the date of the approval of the ordinance but
16terminating upon the date all business district project costs
17and all obligations paying or reimbursing business district
18project costs, if any, have been paid, but in no event later
19than the dissolution date, all amounts generated by the
20retailers' occupation tax and service occupation tax shall be
21collected and the tax shall be enforced by the Department of
22Revenue in the same manner as all retailers' occupation taxes
23and service occupation taxes imposed in the municipality
24imposing the tax and all amounts generated by the hotel
25operators' occupation tax shall be collected and the tax shall

 

 

SB0157 Enrolled- 466 -LRB102 10128 HLH 16591 b

1be enforced by the municipality in the same manner as all hotel
2operators' occupation taxes imposed in the municipality
3imposing the tax. The corporate authorities of the
4municipality shall deposit the proceeds of the taxes imposed
5under subsections (10) and (11) of Section 11-74.3-3 into a
6special fund of the municipality called the "[Name of]
7Business District Tax Allocation Fund" for the purpose of
8paying or reimbursing business district project costs and
9obligations incurred in the payment of those costs.
10    (b) The corporate authorities of a municipality that has
11designated a business district under this Law may, by
12ordinance, impose a Business District Retailers' Occupation
13Tax upon all persons engaged in the business of selling
14tangible personal property, other than an item of tangible
15personal property titled or registered with an agency of this
16State's government, at retail in the business district at a
17rate not to exceed 1% of the gross receipts from the sales made
18in the course of such business, to be imposed only in 0.25%
19increments. The tax may not be imposed on tangible personal
20property taxed at the rate of 1% under the Retailers'
21Occupation Tax Act (or at the 0% rate imposed under this
22amendatory Act of the 102nd General Assembly). Beginning
23December 1, 2019 and through December 31, 2020, this tax is not
24imposed on sales of aviation fuel unless the tax revenue is
25expended for airport-related purposes. If the District does
26not have an airport-related purpose to which it dedicates

 

 

SB0157 Enrolled- 467 -LRB102 10128 HLH 16591 b

1aviation fuel tax revenue, then aviation fuel is excluded from
2the tax. Each municipality must comply with the certification
3requirements for airport-related purposes under Section 2-22
4of the Retailers' Occupation Tax Act. For purposes of this
5Section, "airport-related purposes" has the meaning ascribed
6in Section 6z-20.2 of the State Finance Act. Beginning January
71, 2021, this tax is not imposed on sales of aviation fuel for
8so long as the revenue use requirements of 49 U.S.C. 47107(b)
9and 49 U.S.C. 47133 are binding on the District.
10    The tax imposed under this subsection and all civil
11penalties that may be assessed as an incident thereof shall be
12collected and enforced by the Department of Revenue. The
13certificate of registration that is issued by the Department
14to a retailer under the Retailers' Occupation Tax Act shall
15permit the retailer to engage in a business that is taxable
16under any ordinance or resolution enacted pursuant to this
17subsection without registering separately with the Department
18under such ordinance or resolution or under this subsection.
19The Department of Revenue shall have full power to administer
20and enforce this subsection; to collect all taxes and
21penalties due under this subsection in the manner hereinafter
22provided; and to determine all rights to credit memoranda
23arising on account of the erroneous payment of tax or penalty
24under this subsection. In the administration of, and
25compliance with, this subsection, the Department and persons
26who are subject to this subsection shall have the same rights,

 

 

SB0157 Enrolled- 468 -LRB102 10128 HLH 16591 b

1remedies, privileges, immunities, powers and duties, and be
2subject to the same conditions, restrictions, limitations,
3penalties, exclusions, exemptions, and definitions of terms
4and employ the same modes of procedure, as are prescribed in
5Sections 1, 1a through 1o, 2 through 2-65 (in respect to all
6provisions therein other than the State rate of tax), 2c
7through 2h, 3 (except as to the disposition of taxes and
8penalties collected, and except that the retailer's discount
9is not allowed for taxes paid on aviation fuel that are subject
10to the revenue use requirements of 49 U.S.C. 47107(b) and 49
11U.S.C. 47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6,
126a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the Retailers'
13Occupation Tax Act and all provisions of the Uniform Penalty
14and Interest Act, as fully as if those provisions were set
15forth herein.
16    Persons subject to any tax imposed under this subsection
17may reimburse themselves for their seller's tax liability
18under this subsection by separately stating the tax as an
19additional charge, which charge may be stated in combination,
20in a single amount, with State taxes that sellers are required
21to collect under the Use Tax Act, in accordance with such
22bracket schedules as the Department may prescribe.
23    Whenever the Department determines that a refund should be
24made under this subsection to a claimant instead of issuing a
25credit memorandum, the Department shall notify the State
26Comptroller, who shall cause the order to be drawn for the

 

 

SB0157 Enrolled- 469 -LRB102 10128 HLH 16591 b

1amount specified and to the person named in the notification
2from the Department. The refund shall be paid by the State
3Treasurer out of the business district retailers' occupation
4tax fund or the Local Government Aviation Trust Fund, as
5appropriate.
6    Except as otherwise provided in this paragraph, the
7Department shall immediately pay over to the State Treasurer,
8ex officio, as trustee, all taxes, penalties, and interest
9collected under this subsection for deposit into the business
10district retailers' occupation tax fund. Taxes and penalties
11collected on aviation fuel sold on or after December 1, 2019,
12shall be immediately paid over by the Department to the State
13Treasurer, ex officio, as trustee, for deposit into the Local
14Government Aviation Trust Fund. The Department shall only pay
15moneys into the Local Government Aviation Trust Fund under
16this Section for so long as the revenue use requirements of 49
17U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
18District.
19    As soon as possible after the first day of each month,
20beginning January 1, 2011, upon certification of the
21Department of Revenue, the Comptroller shall order
22transferred, and the Treasurer shall transfer, to the STAR
23Bonds Revenue Fund the local sales tax increment, as defined
24in the Innovation Development and Economy Act, collected under
25this subsection during the second preceding calendar month for
26sales within a STAR bond district.

 

 

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1    After the monthly transfer to the STAR Bonds Revenue Fund,
2on or before the 25th day of each calendar month, the
3Department shall prepare and certify to the Comptroller the
4disbursement of stated sums of money to named municipalities
5from the business district retailers' occupation tax fund, the
6municipalities to be those from which retailers have paid
7taxes or penalties under this subsection to the Department
8during the second preceding calendar month. The amount to be
9paid to each municipality shall be the amount (not including
10credit memoranda and not including taxes and penalties
11collected on aviation fuel sold on or after December 1, 2019)
12collected under this subsection during the second preceding
13calendar month by the Department plus an amount the Department
14determines is necessary to offset any amounts that were
15erroneously paid to a different taxing body, and not including
16an amount equal to the amount of refunds made during the second
17preceding calendar month by the Department, less 2% of that
18amount (except the amount collected on aviation fuel sold on
19or after December 1, 2019), which shall be deposited into the
20Tax Compliance and Administration Fund and shall be used by
21the Department, subject to appropriation, to cover the costs
22of the Department in administering and enforcing the
23provisions of this subsection, on behalf of such municipality,
24and not including any amount that the Department determines is
25necessary to offset any amounts that were payable to a
26different taxing body but were erroneously paid to the

 

 

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1municipality, and not including any amounts that are
2transferred to the STAR Bonds Revenue Fund. Within 10 days
3after receipt by the Comptroller of the disbursement
4certification to the municipalities provided for in this
5subsection to be given to the Comptroller by the Department,
6the Comptroller shall cause the orders to be drawn for the
7respective amounts in accordance with the directions contained
8in the certification. The proceeds of the tax paid to
9municipalities under this subsection shall be deposited into
10the Business District Tax Allocation Fund by the municipality.
11    An ordinance imposing or discontinuing the tax under this
12subsection or effecting a change in the rate thereof shall
13either (i) be adopted and a certified copy thereof filed with
14the Department on or before the first day of April, whereupon
15the Department, if all other requirements of this subsection
16are met, shall proceed to administer and enforce this
17subsection as of the first day of July next following the
18adoption and filing; or (ii) be adopted and a certified copy
19thereof filed with the Department on or before the first day of
20October, whereupon, if all other requirements of this
21subsection are met, the Department shall proceed to administer
22and enforce this subsection as of the first day of January next
23following the adoption and filing.
24    The Department of Revenue shall not administer or enforce
25an ordinance imposing, discontinuing, or changing the rate of
26the tax under this subsection, until the municipality also

 

 

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1provides, in the manner prescribed by the Department, the
2boundaries of the business district and each address in the
3business district in such a way that the Department can
4determine by its address whether a business is located in the
5business district. The municipality must provide this boundary
6and address information to the Department on or before April 1
7for administration and enforcement of the tax under this
8subsection by the Department beginning on the following July 1
9and on or before October 1 for administration and enforcement
10of the tax under this subsection by the Department beginning
11on the following January 1. The Department of Revenue shall
12not administer or enforce any change made to the boundaries of
13a business district or address change, addition, or deletion
14until the municipality reports the boundary change or address
15change, addition, or deletion to the Department in the manner
16prescribed by the Department. The municipality must provide
17this boundary change information or address change, addition,
18or deletion to the Department on or before April 1 for
19administration and enforcement by the Department of the change
20beginning on the following July 1 and on or before October 1
21for administration and enforcement by the Department of the
22change beginning on the following January 1. The retailers in
23the business district shall be responsible for charging the
24tax imposed under this subsection. If a retailer is
25incorrectly included or excluded from the list of those
26required to collect the tax under this subsection, both the

 

 

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1Department of Revenue and the retailer shall be held harmless
2if they reasonably relied on information provided by the
3municipality.
4    A municipality that imposes the tax under this subsection
5must submit to the Department of Revenue any other information
6as the Department may require for the administration and
7enforcement of the tax.
8    When certifying the amount of a monthly disbursement to a
9municipality under this subsection, the Department shall
10increase or decrease the amount by an amount necessary to
11offset any misallocation of previous disbursements. The offset
12amount shall be the amount erroneously disbursed within the
13previous 6 months from the time a misallocation is discovered.
14    Nothing in this subsection shall be construed to authorize
15the municipality to impose a tax upon the privilege of
16engaging in any business which under the Constitution of the
17United States may not be made the subject of taxation by this
18State.
19    If a tax is imposed under this subsection (b), a tax shall
20also be imposed under subsection (c) of this Section.
21    (c) If a tax has been imposed under subsection (b), a
22Business District Service Occupation Tax shall also be imposed
23upon all persons engaged, in the business district, in the
24business of making sales of service, who, as an incident to
25making those sales of service, transfer tangible personal
26property within the business district, either in the form of

 

 

SB0157 Enrolled- 474 -LRB102 10128 HLH 16591 b

1tangible personal property or in the form of real estate as an
2incident to a sale of service. The tax shall be imposed at the
3same rate as the tax imposed in subsection (b) and shall not
4exceed 1% of the selling price of tangible personal property
5so transferred within the business district, to be imposed
6only in 0.25% increments. The tax may not be imposed on
7tangible personal property taxed at the 1% rate under the
8Service Occupation Tax Act (or at the 0% rate imposed under
9this amendatory Act of the 102nd General Assembly). Beginning
10December 1, 2019, this tax is not imposed on sales of aviation
11fuel unless the tax revenue is expended for airport-related
12purposes. If the District does not have an airport-related
13purpose to which it dedicates aviation fuel tax revenue, then
14aviation fuel is excluded from the tax. Each municipality must
15comply with the certification requirements for airport-related
16purposes under Section 2-22 of the Retailers' Occupation Tax
17Act. For purposes of this Act, "airport-related purposes" has
18the meaning ascribed in Section 6z-20.2 of the State Finance
19Act. Beginning January 1, 2021, this tax is not imposed on
20sales of aviation fuel for so long as the revenue use
21requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
22binding on the District.
23    The tax imposed under this subsection and all civil
24penalties that may be assessed as an incident thereof shall be
25collected and enforced by the Department of Revenue. The
26certificate of registration which is issued by the Department

 

 

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1to a retailer under the Retailers' Occupation Tax Act or under
2the Service Occupation Tax Act shall permit such registrant to
3engage in a business which is taxable under any ordinance or
4resolution enacted pursuant to this subsection without
5registering separately with the Department under such
6ordinance or resolution or under this subsection. The
7Department of Revenue shall have full power to administer and
8enforce this subsection; to collect all taxes and penalties
9due under this subsection; to dispose of taxes and penalties
10so collected in the manner hereinafter provided; and to
11determine all rights to credit memoranda arising on account of
12the erroneous payment of tax or penalty under this subsection.
13In the administration of, and compliance with this subsection,
14the Department and persons who are subject to this subsection
15shall have the same rights, remedies, privileges, immunities,
16powers and duties, and be subject to the same conditions,
17restrictions, limitations, penalties, exclusions, exemptions,
18and definitions of terms and employ the same modes of
19procedure as are prescribed in Sections 2, 2a through 2d, 3
20through 3-50 (in respect to all provisions therein other than
21the State rate of tax), 4 (except that the reference to the
22State shall be to the business district), 5, 7, 8 (except that
23the jurisdiction to which the tax shall be a debt to the extent
24indicated in that Section 8 shall be the municipality), 9
25(except as to the disposition of taxes and penalties
26collected, and except that the returned merchandise credit for

 

 

SB0157 Enrolled- 476 -LRB102 10128 HLH 16591 b

1this tax may not be taken against any State tax, and except
2that the retailer's discount is not allowed for taxes paid on
3aviation fuel that are subject to the revenue use requirements
4of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except
5the reference therein to Section 2b of the Retailers'
6Occupation Tax Act), 13 (except that any reference to the
7State shall mean the municipality), the first paragraph of
8Section 15, and Sections 16, 17, 18, 19 and 20 of the Service
9Occupation Tax Act and all provisions of the Uniform Penalty
10and Interest Act, as fully as if those provisions were set
11forth herein.
12    Persons subject to any tax imposed under the authority
13granted in this subsection may reimburse themselves for their
14serviceman's tax liability hereunder by separately stating the
15tax as an additional charge, which charge may be stated in
16combination, in a single amount, with State tax that
17servicemen are authorized to collect under the Service Use Tax
18Act, in accordance with such bracket schedules as the
19Department may prescribe.
20    Whenever the Department determines that a refund should be
21made under this subsection to a claimant instead of issuing
22credit memorandum, the Department shall notify the State
23Comptroller, who shall cause the order to be drawn for the
24amount specified, and to the person named, in such
25notification from the Department. Such refund shall be paid by
26the State Treasurer out of the business district retailers'

 

 

SB0157 Enrolled- 477 -LRB102 10128 HLH 16591 b

1occupation tax fund or the Local Government Aviation Trust
2Fund, as appropriate.
3    Except as otherwise provided in this paragraph, the
4Department shall forthwith pay over to the State Treasurer,
5ex-officio, as trustee, all taxes, penalties, and interest
6collected under this subsection for deposit into the business
7district retailers' occupation tax fund. Taxes and penalties
8collected on aviation fuel sold on or after December 1, 2019,
9shall be immediately paid over by the Department to the State
10Treasurer, ex officio, as trustee, for deposit into the Local
11Government Aviation Trust Fund. The Department shall only pay
12moneys into the Local Government Aviation Trust Fund under
13this Section for so long as the revenue use requirements of 49
14U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
15District.
16    As soon as possible after the first day of each month,
17beginning January 1, 2011, upon certification of the
18Department of Revenue, the Comptroller shall order
19transferred, and the Treasurer shall transfer, to the STAR
20Bonds Revenue Fund the local sales tax increment, as defined
21in the Innovation Development and Economy Act, collected under
22this subsection during the second preceding calendar month for
23sales within a STAR bond district.
24    After the monthly transfer to the STAR Bonds Revenue Fund,
25on or before the 25th day of each calendar month, the
26Department shall prepare and certify to the Comptroller the

 

 

SB0157 Enrolled- 478 -LRB102 10128 HLH 16591 b

1disbursement of stated sums of money to named municipalities
2from the business district retailers' occupation tax fund, the
3municipalities to be those from which suppliers and servicemen
4have paid taxes or penalties under this subsection to the
5Department during the second preceding calendar month. The
6amount to be paid to each municipality shall be the amount (not
7including credit memoranda and not including taxes and
8penalties collected on aviation fuel sold on or after December
91, 2019) collected under this subsection during the second
10preceding calendar month by the Department, less 2% of that
11amount (except the amount collected on aviation fuel sold on
12or after December 1, 2019), which shall be deposited into the
13Tax Compliance and Administration Fund and shall be used by
14the Department, subject to appropriation, to cover the costs
15of the Department in administering and enforcing the
16provisions of this subsection, and not including an amount
17equal to the amount of refunds made during the second
18preceding calendar month by the Department on behalf of such
19municipality, and not including any amounts that are
20transferred to the STAR Bonds Revenue Fund. Within 10 days
21after receipt, by the Comptroller, of the disbursement
22certification to the municipalities, provided for in this
23subsection to be given to the Comptroller by the Department,
24the Comptroller shall cause the orders to be drawn for the
25respective amounts in accordance with the directions contained
26in such certification. The proceeds of the tax paid to

 

 

SB0157 Enrolled- 479 -LRB102 10128 HLH 16591 b

1municipalities under this subsection shall be deposited into
2the Business District Tax Allocation Fund by the municipality.
3    An ordinance imposing or discontinuing the tax under this
4subsection or effecting a change in the rate thereof shall
5either (i) be adopted and a certified copy thereof filed with
6the Department on or before the first day of April, whereupon
7the Department, if all other requirements of this subsection
8are met, shall proceed to administer and enforce this
9subsection as of the first day of July next following the
10adoption and filing; or (ii) be adopted and a certified copy
11thereof filed with the Department on or before the first day of
12October, whereupon, if all other conditions of this subsection
13are met, the Department shall proceed to administer and
14enforce this subsection as of the first day of January next
15following the adoption and filing.
16    The Department of Revenue shall not administer or enforce
17an ordinance imposing, discontinuing, or changing the rate of
18the tax under this subsection, until the municipality also
19provides, in the manner prescribed by the Department, the
20boundaries of the business district in such a way that the
21Department can determine by its address whether a business is
22located in the business district. The municipality must
23provide this boundary and address information to the
24Department on or before April 1 for administration and
25enforcement of the tax under this subsection by the Department
26beginning on the following July 1 and on or before October 1

 

 

SB0157 Enrolled- 480 -LRB102 10128 HLH 16591 b

1for administration and enforcement of the tax under this
2subsection by the Department beginning on the following
3January 1. The Department of Revenue shall not administer or
4enforce any change made to the boundaries of a business
5district or address change, addition, or deletion until the
6municipality reports the boundary change or address change,
7addition, or deletion to the Department in the manner
8prescribed by the Department. The municipality must provide
9this boundary change information or address change, addition,
10or deletion to the Department on or before April 1 for
11administration and enforcement by the Department of the change
12beginning on the following July 1 and on or before October 1
13for administration and enforcement by the Department of the
14change beginning on the following January 1. The retailers in
15the business district shall be responsible for charging the
16tax imposed under this subsection. If a retailer is
17incorrectly included or excluded from the list of those
18required to collect the tax under this subsection, both the
19Department of Revenue and the retailer shall be held harmless
20if they reasonably relied on information provided by the
21municipality.
22    A municipality that imposes the tax under this subsection
23must submit to the Department of Revenue any other information
24as the Department may require for the administration and
25enforcement of the tax.
26    Nothing in this subsection shall be construed to authorize

 

 

SB0157 Enrolled- 481 -LRB102 10128 HLH 16591 b

1the municipality to impose a tax upon the privilege of
2engaging in any business which under the Constitution of the
3United States may not be made the subject of taxation by the
4State.
5    If a tax is imposed under this subsection (c), a tax shall
6also be imposed under subsection (b) of this Section.
7    (d) By ordinance, a municipality that has designated a
8business district under this Law may impose an occupation tax
9upon all persons engaged in the business district in the
10business of renting, leasing, or letting rooms in a hotel, as
11defined in the Hotel Operators' Occupation Tax Act, at a rate
12not to exceed 1% of the gross rental receipts from the renting,
13leasing, or letting of hotel rooms within the business
14district, to be imposed only in 0.25% increments, excluding,
15however, from gross rental receipts the proceeds of renting,
16leasing, or letting to permanent residents of a hotel, as
17defined in the Hotel Operators' Occupation Tax Act, and
18proceeds from the tax imposed under subsection (c) of Section
1913 of the Metropolitan Pier and Exposition Authority Act.
20    The tax imposed by the municipality under this subsection
21and all civil penalties that may be assessed as an incident to
22that tax shall be collected and enforced by the municipality
23imposing the tax. The municipality shall have full power to
24administer and enforce this subsection, to collect all taxes
25and penalties due under this subsection, to dispose of taxes
26and penalties so collected in the manner provided in this

 

 

SB0157 Enrolled- 482 -LRB102 10128 HLH 16591 b

1subsection, and to determine all rights to credit memoranda
2arising on account of the erroneous payment of tax or penalty
3under this subsection. In the administration of and compliance
4with this subsection, the municipality and persons who are
5subject to this subsection shall have the same rights,
6remedies, privileges, immunities, powers, and duties, shall be
7subject to the same conditions, restrictions, limitations,
8penalties, and definitions of terms, and shall employ the same
9modes of procedure as are employed with respect to a tax
10adopted by the municipality under Section 8-3-14 of this Code.
11    Persons subject to any tax imposed under the authority
12granted in this subsection may reimburse themselves for their
13tax liability for that tax by separately stating that tax as an
14additional charge, which charge may be stated in combination,
15in a single amount, with State taxes imposed under the Hotel
16Operators' Occupation Tax Act, and with any other tax.
17    Nothing in this subsection shall be construed to authorize
18a municipality to impose a tax upon the privilege of engaging
19in any business which under the Constitution of the United
20States may not be made the subject of taxation by this State.
21    The proceeds of the tax imposed under this subsection
22shall be deposited into the Business District Tax Allocation
23Fund.
24    (e) Obligations secured by the Business District Tax
25Allocation Fund may be issued to provide for the payment or
26reimbursement of business district project costs. Those

 

 

SB0157 Enrolled- 483 -LRB102 10128 HLH 16591 b

1obligations, when so issued, shall be retired in the manner
2provided in the ordinance authorizing the issuance of those
3obligations by the receipts of taxes imposed pursuant to
4subsections (10) and (11) of Section 11-74.3-3 and by other
5revenue designated or pledged by the municipality. A
6municipality may in the ordinance pledge, for any period of
7time up to and including the dissolution date, all or any part
8of the funds in and to be deposited in the Business District
9Tax Allocation Fund to the payment of business district
10project costs and obligations. Whenever a municipality pledges
11all of the funds to the credit of a business district tax
12allocation fund to secure obligations issued or to be issued
13to pay or reimburse business district project costs, the
14municipality may specifically provide that funds remaining to
15the credit of such business district tax allocation fund after
16the payment of such obligations shall be accounted for
17annually and shall be deemed to be "surplus" funds, and such
18"surplus" funds shall be expended by the municipality for any
19business district project cost as approved in the business
20district plan. Whenever a municipality pledges less than all
21of the monies to the credit of a business district tax
22allocation fund to secure obligations issued or to be issued
23to pay or reimburse business district project costs, the
24municipality shall provide that monies to the credit of the
25business district tax allocation fund and not subject to such
26pledge or otherwise encumbered or required for payment of

 

 

SB0157 Enrolled- 484 -LRB102 10128 HLH 16591 b

1contractual obligations for specific business district project
2costs shall be calculated annually and shall be deemed to be
3"surplus" funds, and such "surplus" funds shall be expended by
4the municipality for any business district project cost as
5approved in the business district plan.
6    No obligation issued pursuant to this Law and secured by a
7pledge of all or any portion of any revenues received or to be
8received by the municipality from the imposition of taxes
9pursuant to subsection (10) of Section 11-74.3-3, shall be
10deemed to constitute an economic incentive agreement under
11Section 8-11-20, notwithstanding the fact that such pledge
12provides for the sharing, rebate, or payment of retailers'
13occupation taxes or service occupation taxes imposed pursuant
14to subsection (10) of Section 11-74.3-3 and received or to be
15received by the municipality from the development or
16redevelopment of properties in the business district.
17    Without limiting the foregoing in this Section, the
18municipality may further secure obligations secured by the
19business district tax allocation fund with a pledge, for a
20period not greater than the term of the obligations and in any
21case not longer than the dissolution date, of any part or any
22combination of the following: (i) net revenues of all or part
23of any business district project; (ii) taxes levied or imposed
24by the municipality on any or all property in the
25municipality, including, specifically, taxes levied or imposed
26by the municipality in a special service area pursuant to the

 

 

SB0157 Enrolled- 485 -LRB102 10128 HLH 16591 b

1Special Service Area Tax Law; (iii) the full faith and credit
2of the municipality; (iv) a mortgage on part or all of the
3business district project; or (v) any other taxes or
4anticipated receipts that the municipality may lawfully
5pledge.
6    Such obligations may be issued in one or more series, bear
7such date or dates, become due at such time or times as therein
8provided, but in any case not later than (i) 20 years after the
9date of issue or (ii) the dissolution date, whichever is
10earlier, bear interest payable at such intervals and at such
11rate or rates as set forth therein, except as may be limited by
12applicable law, which rate or rates may be fixed or variable,
13be in such denominations, be in such form, either coupon,
14registered, or book-entry, carry such conversion, registration
15and exchange privileges, be subject to defeasance upon such
16terms, have such rank or priority, be executed in such manner,
17be payable in such medium or payment at such place or places
18within or without the State, make provision for a corporate
19trustee within or without the State with respect to such
20obligations, prescribe the rights, powers, and duties thereof
21to be exercised for the benefit of the municipality and the
22benefit of the owners of such obligations, provide for the
23holding in trust, investment, and use of moneys, funds, and
24accounts held under an ordinance, provide for assignment of
25and direct payment of the moneys to pay such obligations or to
26be deposited into such funds or accounts directly to such

 

 

SB0157 Enrolled- 486 -LRB102 10128 HLH 16591 b

1trustee, be subject to such terms of redemption with or
2without premium, and be sold at such price, all as the
3corporate authorities shall determine. No referendum approval
4of the electors shall be required as a condition to the
5issuance of obligations pursuant to this Law except as
6provided in this Section.
7    In the event the municipality authorizes the issuance of
8obligations pursuant to the authority of this Law secured by
9the full faith and credit of the municipality, or pledges ad
10valorem taxes pursuant to this subsection, which obligations
11are other than obligations which may be issued under home rule
12powers provided by Section 6 of Article VII of the Illinois
13Constitution or which ad valorem taxes are other than ad
14valorem taxes which may be pledged under home rule powers
15provided by Section 6 of Article VII of the Illinois
16Constitution or which are levied in a special service area
17pursuant to the Special Service Area Tax Law, the ordinance
18authorizing the issuance of those obligations or pledging
19those taxes shall be published within 10 days after the
20ordinance has been adopted, in a newspaper having a general
21circulation within the municipality. The publication of the
22ordinance shall be accompanied by a notice of (i) the specific
23number of voters required to sign a petition requesting the
24question of the issuance of the obligations or pledging such
25ad valorem taxes to be submitted to the electors; (ii) the time
26within which the petition must be filed; and (iii) the date of

 

 

SB0157 Enrolled- 487 -LRB102 10128 HLH 16591 b

1the prospective referendum. The municipal clerk shall provide
2a petition form to any individual requesting one.
3    If no petition is filed with the municipal clerk, as
4hereinafter provided in this Section, within 21 days after the
5publication of the ordinance, the ordinance shall be in
6effect. However, if within that 21-day period a petition is
7filed with the municipal clerk, signed by electors numbering
8not less than 15% of the number of electors voting for the
9mayor or president at the last general municipal election,
10asking that the question of issuing obligations using full
11faith and credit of the municipality as security for the cost
12of paying or reimbursing business district project costs, or
13of pledging such ad valorem taxes for the payment of those
14obligations, or both, be submitted to the electors of the
15municipality, the municipality shall not be authorized to
16issue obligations of the municipality using the full faith and
17credit of the municipality as security or pledging such ad
18valorem taxes for the payment of those obligations, or both,
19until the proposition has been submitted to and approved by a
20majority of the voters voting on the proposition at a
21regularly scheduled election. The municipality shall certify
22the proposition to the proper election authorities for
23submission in accordance with the general election law.
24    The ordinance authorizing the obligations may provide that
25the obligations shall contain a recital that they are issued
26pursuant to this Law, which recital shall be conclusive

 

 

SB0157 Enrolled- 488 -LRB102 10128 HLH 16591 b

1evidence of their validity and of the regularity of their
2issuance.
3    In the event the municipality authorizes issuance of
4obligations pursuant to this Law secured by the full faith and
5credit of the municipality, the ordinance authorizing the
6obligations may provide for the levy and collection of a
7direct annual tax upon all taxable property within the
8municipality sufficient to pay the principal thereof and
9interest thereon as it matures, which levy may be in addition
10to and exclusive of the maximum of all other taxes authorized
11to be levied by the municipality, which levy, however, shall
12be abated to the extent that monies from other sources are
13available for payment of the obligations and the municipality
14certifies the amount of those monies available to the county
15clerk.
16    A certified copy of the ordinance shall be filed with the
17county clerk of each county in which any portion of the
18municipality is situated, and shall constitute the authority
19for the extension and collection of the taxes to be deposited
20in the business district tax allocation fund.
21    A municipality may also issue its obligations to refund,
22in whole or in part, obligations theretofore issued by the
23municipality under the authority of this Law, whether at or
24prior to maturity. However, the last maturity of the refunding
25obligations shall not be expressed to mature later than the
26dissolution date.

 

 

SB0157 Enrolled- 489 -LRB102 10128 HLH 16591 b

1    In the event a municipality issues obligations under home
2rule powers or other legislative authority, the proceeds of
3which are pledged to pay or reimburse business district
4project costs, the municipality may, if it has followed the
5procedures in conformance with this Law, retire those
6obligations from funds in the business district tax allocation
7fund in amounts and in such manner as if those obligations had
8been issued pursuant to the provisions of this Law.
9    No obligations issued pursuant to this Law shall be
10regarded as indebtedness of the municipality issuing those
11obligations or any other taxing district for the purpose of
12any limitation imposed by law.
13    Obligations issued pursuant to this Law shall not be
14subject to the provisions of the Bond Authorization Act.
15    (f) When business district project costs, including,
16without limitation, all obligations paying or reimbursing
17business district project costs have been paid, any surplus
18funds then remaining in the Business District Tax Allocation
19Fund shall be distributed to the municipal treasurer for
20deposit into the general corporate fund of the municipality.
21Upon payment of all business district project costs and
22retirement of all obligations paying or reimbursing business
23district project costs, but in no event more than 23 years
24after the date of adoption of the ordinance imposing taxes
25pursuant to subsection (10) or (11) of Section 11-74.3-3, the
26municipality shall adopt an ordinance immediately rescinding

 

 

SB0157 Enrolled- 490 -LRB102 10128 HLH 16591 b

1the taxes imposed pursuant to subsection (10) or (11) of
2Section 11-74.3-3.
3(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19;
4101-604, eff. 12-13-19.)
 
5    Section 60-50. The Flood Prevention District Act is
6amended by changing Section 25 as follows:
 
7    (70 ILCS 750/25)
8    Sec. 25. Flood prevention retailers' and service
9occupation taxes.
10    (a) If the Board of Commissioners of a flood prevention
11district determines that an emergency situation exists
12regarding levee repair or flood prevention, and upon an
13ordinance confirming the determination adopted by the
14affirmative vote of a majority of the members of the county
15board of the county in which the district is situated, the
16county may impose a flood prevention retailers' occupation tax
17upon all persons engaged in the business of selling tangible
18personal property at retail within the territory of the
19district to provide revenue to pay the costs of providing
20emergency levee repair and flood prevention and to secure the
21payment of bonds, notes, and other evidences of indebtedness
22issued under this Act for a period not to exceed 25 years or as
23required to repay the bonds, notes, and other evidences of
24indebtedness issued under this Act. The tax rate shall be

 

 

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10.25% of the gross receipts from all taxable sales made in the
2course of that business. Beginning December 1, 2019 and
3through December 31, 2020, this tax is not imposed on sales of
4aviation fuel unless the tax revenue is expended for
5airport-related purposes. If the District does not have an
6airport-related purpose to which it dedicates aviation fuel
7tax revenue, then aviation fuel is excluded from the tax. The
8County must comply with the certification requirements for
9airport-related purposes under Section 2-22 of the Retailers'
10Occupation Tax Act. The tax imposed under this Section and all
11civil penalties that may be assessed as an incident thereof
12shall be collected and enforced by the State Department of
13Revenue. The Department shall have full power to administer
14and enforce this Section; to collect all taxes and penalties
15so collected in the manner hereinafter provided; and to
16determine all rights to credit memoranda arising on account of
17the erroneous payment of tax or penalty hereunder.
18    For purposes of this Act, "airport-related purposes" has
19the meaning ascribed in Section 6z-20.2 of the State Finance
20Act. Beginning January 1, 2021, this tax is not imposed on
21sales of aviation fuel for so long as the revenue use
22requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
23binding on the District.
24    In the administration of and compliance with this
25subsection, the Department and persons who are subject to this
26subsection (i) have the same rights, remedies, privileges,

 

 

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1immunities, powers, and duties, (ii) are subject to the same
2conditions, restrictions, limitations, penalties, and
3definitions of terms, and (iii) shall employ the same modes of
4procedure as are set forth in Sections 1 through 1o, 2 through
52-70 (in respect to all provisions contained in those Sections
6other than the State rate of tax), 2a through 2h, 3 (except as
7to the disposition of taxes and penalties collected, and
8except that the retailer's discount is not allowed for taxes
9paid on aviation fuel that are subject to the revenue use
10requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
115a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5l, 6, 6a, 6b, 6c, 6d, 7,
128, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax
13Act and all provisions of the Uniform Penalty and Interest Act
14as if those provisions were set forth in this subsection.
15    Persons subject to any tax imposed under this Section may
16reimburse themselves for their seller's tax liability
17hereunder by separately stating the tax as an additional
18charge, which charge may be stated in combination in a single
19amount with State taxes that sellers are required to collect
20under the Use Tax Act, under any bracket schedules the
21Department may prescribe.
22    If a tax is imposed under this subsection (a), a tax shall
23also be imposed under subsection (b) of this Section.
24    (b) If a tax has been imposed under subsection (a), a flood
25prevention service occupation tax shall also be imposed upon
26all persons engaged within the territory of the district in

 

 

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1the business of making sales of service, who, as an incident to
2making the sales of service, transfer tangible personal
3property, either in the form of tangible personal property or
4in the form of real estate as an incident to a sale of service
5to provide revenue to pay the costs of providing emergency
6levee repair and flood prevention and to secure the payment of
7bonds, notes, and other evidences of indebtedness issued under
8this Act for a period not to exceed 25 years or as required to
9repay the bonds, notes, and other evidences of indebtedness.
10The tax rate shall be 0.25% of the selling price of all
11tangible personal property transferred. Beginning December 1,
122019 and through December 31, 2020, this tax is not imposed on
13sales of aviation fuel unless the tax revenue is expended for
14airport-related purposes. If the District does not have an
15airport-related purpose to which it dedicates aviation fuel
16tax revenue, then aviation fuel is excluded from the tax. The
17County must comply with the certification requirements for
18airport-related purposes under Section 2-22 of the Retailers'
19Occupation Tax Act. For purposes of this Act, "airport-related
20purposes" has the meaning ascribed in Section 6z-20.2 of the
21State Finance Act. Beginning January 1, 2021, this tax is not
22imposed on sales of aviation fuel for so long as the revenue
23use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
24binding on the District.
25    The tax imposed under this subsection and all civil
26penalties that may be assessed as an incident thereof shall be

 

 

SB0157 Enrolled- 494 -LRB102 10128 HLH 16591 b

1collected and enforced by the State Department of Revenue. The
2Department shall have full power to administer and enforce
3this subsection; to collect all taxes and penalties due
4hereunder; to dispose of taxes and penalties collected in the
5manner hereinafter provided; and to determine all rights to
6credit memoranda arising on account of the erroneous payment
7of tax or penalty hereunder.
8    In the administration of and compliance with this
9subsection, the Department and persons who are subject to this
10subsection shall (i) have the same rights, remedies,
11privileges, immunities, powers, and duties, (ii) be subject to
12the same conditions, restrictions, limitations, penalties, and
13definitions of terms, and (iii) employ the same modes of
14procedure as are set forth in Sections 2 (except that the
15reference to State in the definition of supplier maintaining a
16place of business in this State means the district), 2a
17through 2d, 3 through 3-50 (in respect to all provisions
18contained in those Sections other than the State rate of tax),
194 (except that the reference to the State shall be to the
20district), 5, 7, 8 (except that the jurisdiction to which the
21tax is a debt to the extent indicated in that Section 8 is the
22district), 9 (except as to the disposition of taxes and
23penalties collected, and except that the retailer's discount
24is not allowed for taxes paid on aviation fuel that are subject
25to the revenue use requirements of 49 U.S.C. 47107(b) and 49
26U.S.C. 47133), 10, 11, 12 (except the reference therein to

 

 

SB0157 Enrolled- 495 -LRB102 10128 HLH 16591 b

1Section 2b of the Retailers' Occupation Tax Act), 13 (except
2that any reference to the State means the district), Section
315, 16, 17, 18, 19, and 20 of the Service Occupation Tax Act
4and all provisions of the Uniform Penalty and Interest Act, as
5fully as if those provisions were set forth herein.
6    Persons subject to any tax imposed under the authority
7granted in this subsection may reimburse themselves for their
8serviceman's tax liability hereunder by separately stating the
9tax as an additional charge, that charge may be stated in
10combination in a single amount with State tax that servicemen
11are authorized to collect under the Service Use Tax Act, under
12any bracket schedules the Department may prescribe.
13    (c) The taxes imposed in subsections (a) and (b) may not be
14imposed on personal property titled or registered with an
15agency of the State or on personal property taxed at the 1%
16rate under the Retailers' Occupation Tax Act and the Service
17Occupation Tax Act (or at the 0% rate imposed under this
18amendatory Act of the 102nd General Assembly).
19    (d) Nothing in this Section shall be construed to
20authorize the district to impose a tax upon the privilege of
21engaging in any business that under the Constitution of the
22United States may not be made the subject of taxation by the
23State.
24    (e) The certificate of registration that is issued by the
25Department to a retailer under the Retailers' Occupation Tax
26Act or a serviceman under the Service Occupation Tax Act

 

 

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1permits the retailer or serviceman to engage in a business
2that is taxable without registering separately with the
3Department under an ordinance or resolution under this
4Section.
5    (f) Except as otherwise provided, the Department shall
6immediately pay over to the State Treasurer, ex officio, as
7trustee, all taxes and penalties collected under this Section
8to be deposited into the Flood Prevention Occupation Tax Fund,
9which shall be an unappropriated trust fund held outside the
10State treasury. Taxes and penalties collected on aviation fuel
11sold on or after December 1, 2019 and through December 31,
122020, shall be immediately paid over by the Department to the
13State Treasurer, ex officio, as trustee, for deposit into the
14Local Government Aviation Trust Fund. The Department shall
15only pay moneys into the Local Government Aviation Trust Fund
16under this Act for so long as the revenue use requirements of
1749 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
18District.
19    On or before the 25th day of each calendar month, the
20Department shall prepare and certify to the Comptroller the
21disbursement of stated sums of money to the counties from
22which retailers or servicemen have paid taxes or penalties to
23the Department during the second preceding calendar month. The
24amount to be paid to each county is equal to the amount (not
25including credit memoranda and not including taxes and
26penalties collected on aviation fuel sold on or after December

 

 

SB0157 Enrolled- 497 -LRB102 10128 HLH 16591 b

11, 2019 and through December 31, 2020) collected from the
2county under this Section during the second preceding calendar
3month by the Department, (i) less 2% of that amount (except the
4amount collected on aviation fuel sold on or after December 1,
52019 and through December 31, 2020), which shall be deposited
6into the Tax Compliance and Administration Fund and shall be
7used by the Department in administering and enforcing the
8provisions of this Section on behalf of the county, (ii) plus
9an amount that the Department determines is necessary to
10offset any amounts that were erroneously paid to a different
11taxing body; (iii) less an amount equal to the amount of
12refunds made during the second preceding calendar month by the
13Department on behalf of the county; and (iv) less any amount
14that the Department determines is necessary to offset any
15amounts that were payable to a different taxing body but were
16erroneously paid to the county. When certifying the amount of
17a monthly disbursement to a county under this Section, the
18Department shall increase or decrease the amounts by an amount
19necessary to offset any miscalculation of previous
20disbursements within the previous 6 months from the time a
21miscalculation is discovered.
22    Within 10 days after receipt by the Comptroller from the
23Department of the disbursement certification to the counties
24provided for in this Section, the Comptroller shall cause the
25orders to be drawn for the respective amounts in accordance
26with directions contained in the certification.

 

 

SB0157 Enrolled- 498 -LRB102 10128 HLH 16591 b

1    If the Department determines that a refund should be made
2under this Section to a claimant instead of issuing a credit
3memorandum, then the Department shall notify the Comptroller,
4who shall cause the order to be drawn for the amount specified
5and to the person named in the notification from the
6Department. The refund shall be paid by the Treasurer out of
7the Flood Prevention Occupation Tax Fund or the Local
8Government Aviation Trust Fund, as appropriate.
9    (g) If a county imposes a tax under this Section, then the
10county board shall, by ordinance, discontinue the tax upon the
11payment of all indebtedness of the flood prevention district.
12The tax shall not be discontinued until all indebtedness of
13the District has been paid.
14    (h) Any ordinance imposing the tax under this Section, or
15any ordinance that discontinues the tax, must be certified by
16the county clerk and filed with the Illinois Department of
17Revenue either (i) on or before the first day of April,
18whereupon the Department shall proceed to administer and
19enforce the tax or change in the rate as of the first day of
20July next following the filing; or (ii) on or before the first
21day of October, whereupon the Department shall proceed to
22administer and enforce the tax or change in the rate as of the
23first day of January next following the filing.
24    (j) County Flood Prevention Occupation Tax Fund. All
25proceeds received by a county from a tax distribution under
26this Section must be maintained in a special fund known as the

 

 

SB0157 Enrolled- 499 -LRB102 10128 HLH 16591 b

1[name of county] flood prevention occupation tax fund. The
2county shall, at the direction of the flood prevention
3district, use moneys in the fund to pay the costs of providing
4emergency levee repair and flood prevention and to pay bonds,
5notes, and other evidences of indebtedness issued under this
6Act.
7    (k) This Section may be cited as the Flood Prevention
8Occupation Tax Law.
9(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19;
10101-604, eff. 12-13-19.)
 
11    Section 60-55. The Metro-East Park and Recreation District
12Act is amended by changing Section 30 as follows:
 
13    (70 ILCS 1605/30)
14    Sec. 30. Taxes.
15    (a) The board shall impose a tax upon all persons engaged
16in the business of selling tangible personal property, other
17than personal property titled or registered with an agency of
18this State's government, at retail in the District on the
19gross receipts from the sales made in the course of business.
20This tax shall be imposed only at the rate of one-tenth of one
21per cent.
22    This additional tax may not be imposed on tangible
23personal property taxed at the 1% rate under the Retailers'
24Occupation Tax Act (or at the 0% rate imposed under this

 

 

SB0157 Enrolled- 500 -LRB102 10128 HLH 16591 b

1amendatory Act of the 102nd General Assembly). Beginning
2December 1, 2019 and through December 31, 2020, this tax is not
3imposed on sales of aviation fuel unless the tax revenue is
4expended for airport-related purposes. If the District does
5not have an airport-related purpose to which it dedicates
6aviation fuel tax revenue, then aviation fuel shall be
7excluded from tax. The board must comply with the
8certification requirements for airport-related purposes under
9Section 2-22 of the Retailers' Occupation Tax Act. For
10purposes of this Act, "airport-related purposes" has the
11meaning ascribed in Section 6z-20.2 of the State Finance Act.
12Beginning January 1, 2021, this tax is not imposed on sales of
13aviation fuel for so long as the revenue use requirements of 49
14U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
15District. The tax imposed by the Board under this Section and
16all civil penalties that may be assessed as an incident of the
17tax shall be collected and enforced by the Department of
18Revenue. The certificate of registration that is issued by the
19Department to a retailer under the Retailers' Occupation Tax
20Act shall permit the retailer to engage in a business that is
21taxable without registering separately with the Department
22under an ordinance or resolution under this Section. The
23Department has full power to administer and enforce this
24Section, to collect all taxes and penalties due under this
25Section, to dispose of taxes and penalties so collected in the
26manner provided in this Section, and to determine all rights

 

 

SB0157 Enrolled- 501 -LRB102 10128 HLH 16591 b

1to credit memoranda arising on account of the erroneous
2payment of a tax or penalty under this Section. In the
3administration of and compliance with this Section, the
4Department and persons who are subject to this Section shall
5(i) have the same rights, remedies, privileges, immunities,
6powers, and duties, (ii) be subject to the same conditions,
7restrictions, limitations, penalties, and definitions of
8terms, and (iii) employ the same modes of procedure as are
9prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
101n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
11contained in those Sections other than the State rate of tax),
122-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except provisions
13relating to transaction returns and quarter monthly payments,
14and except that the retailer's discount is not allowed for
15taxes paid on aviation fuel that are subject to the revenue use
16requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
175a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c,
186d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
19Occupation Tax Act and the Uniform Penalty and Interest Act as
20if those provisions were set forth in this Section.
21    Persons subject to any tax imposed under the authority
22granted in this Section may reimburse themselves for their
23sellers' tax liability by separately stating the tax as an
24additional charge, which charge may be stated in combination,
25in a single amount, with State tax which sellers are required
26to collect under the Use Tax Act, pursuant to such bracketed

 

 

SB0157 Enrolled- 502 -LRB102 10128 HLH 16591 b

1schedules as the Department may prescribe.
2    Whenever the Department determines that a refund should be
3made under this Section to a claimant instead of issuing a
4credit memorandum, the Department shall notify the State
5Comptroller, who shall cause the order to be drawn for the
6amount specified and to the person named in the notification
7from the Department. The refund shall be paid by the State
8Treasurer out of the State Metro-East Park and Recreation
9District Fund or the Local Government Aviation Trust Fund, as
10appropriate.
11    (b) If a tax has been imposed under subsection (a), a
12service occupation tax shall also be imposed at the same rate
13upon all persons engaged, in the District, in the business of
14making sales of service, who, as an incident to making those
15sales of service, transfer tangible personal property within
16the District as an incident to a sale of service. This tax may
17not be imposed on tangible personal property taxed at the 1%
18rate under the Service Occupation Tax Act (or at the 0% rate
19imposed under this amendatory Act of the 102nd General
20Assembly). Beginning December 1, 2019 and through December 31,
212020, this tax may not be imposed on sales of aviation fuel
22unless the tax revenue is expended for airport-related
23purposes. If the District does not have an airport-related
24purpose to which it dedicates aviation fuel tax revenue, then
25aviation fuel shall be excluded from tax. The board must
26comply with the certification requirements for airport-related

 

 

SB0157 Enrolled- 503 -LRB102 10128 HLH 16591 b

1purposes under Section 2-22 of the Retailers' Occupation Tax
2Act. For purposes of this Act, "airport-related purposes" has
3the meaning ascribed in Section 6z-20.2 of the State Finance
4Act. Beginning January 1, 2021, this tax is not imposed on
5sales of aviation fuel for so long as the revenue use
6requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
7binding on the District. The tax imposed under this subsection
8and all civil penalties that may be assessed as an incident
9thereof shall be collected and enforced by the Department of
10Revenue. The Department has full power to administer and
11enforce this subsection; to collect all taxes and penalties
12due hereunder; to dispose of taxes and penalties so collected
13in the manner hereinafter provided; and to determine all
14rights to credit memoranda arising on account of the erroneous
15payment of tax or penalty hereunder. In the administration of,
16and compliance with this subsection, the Department and
17persons who are subject to this paragraph shall (i) have the
18same rights, remedies, privileges, immunities, powers, and
19duties, (ii) be subject to the same conditions, restrictions,
20limitations, penalties, exclusions, exemptions, and
21definitions of terms, and (iii) employ the same modes of
22procedure as are prescribed in Sections 2 (except that the
23reference to State in the definition of supplier maintaining a
24place of business in this State shall mean the District), 2a,
252b, 2c, 3 through 3-50 (in respect to all provisions therein
26other than the State rate of tax), 4 (except that the reference

 

 

SB0157 Enrolled- 504 -LRB102 10128 HLH 16591 b

1to the State shall be to the District), 5, 7, 8 (except that
2the jurisdiction to which the tax shall be a debt to the extent
3indicated in that Section 8 shall be the District), 9 (except
4as to the disposition of taxes and penalties collected, and
5except that the retailer's discount is not allowed for taxes
6paid on aviation fuel that are subject to the revenue use
7requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
811, 12 (except the reference therein to Section 2b of the
9Retailers' Occupation Tax Act), 13 (except that any reference
10to the State shall mean the District), Sections 15, 16, 17, 18,
1119 and 20 of the Service Occupation Tax Act and the Uniform
12Penalty and Interest Act, as fully as if those provisions were
13set forth herein.
14    Persons subject to any tax imposed under the authority
15granted in this subsection may reimburse themselves for their
16serviceman's tax liability by separately stating the tax as an
17additional charge, which charge may be stated in combination,
18in a single amount, with State tax that servicemen are
19authorized to collect under the Service Use Tax Act, in
20accordance with such bracket schedules as the Department may
21prescribe.
22    Whenever the Department determines that a refund should be
23made under this subsection to a claimant instead of issuing a
24credit memorandum, the Department shall notify the State
25Comptroller, who shall cause the warrant to be drawn for the
26amount specified, and to the person named, in the notification

 

 

SB0157 Enrolled- 505 -LRB102 10128 HLH 16591 b

1from the Department. The refund shall be paid by the State
2Treasurer out of the State Metro-East Park and Recreation
3District Fund or the Local Government Aviation Trust Fund, as
4appropriate.
5    Nothing in this subsection shall be construed to authorize
6the board to impose a tax upon the privilege of engaging in any
7business which under the Constitution of the United States may
8not be made the subject of taxation by the State.
9    (c) Except as otherwise provided in this paragraph, the
10Department shall immediately pay over to the State Treasurer,
11ex officio, as trustee, all taxes and penalties collected
12under this Section to be deposited into the State Metro-East
13Park and Recreation District Fund, which shall be an
14unappropriated trust fund held outside of the State treasury.
15Taxes and penalties collected on aviation fuel sold on or
16after December 1, 2019 and through December 31, 2020, shall be
17immediately paid over by the Department to the State
18Treasurer, ex officio, as trustee, for deposit into the Local
19Government Aviation Trust Fund. The Department shall only pay
20moneys into the Local Government Aviation Trust Fund under
21this Act for so long as the revenue use requirements of 49
22U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
23District.
24    As soon as possible after the first day of each month,
25beginning January 1, 2011, upon certification of the
26Department of Revenue, the Comptroller shall order

 

 

SB0157 Enrolled- 506 -LRB102 10128 HLH 16591 b

1transferred, and the Treasurer shall transfer, to the STAR
2Bonds Revenue Fund the local sales tax increment, as defined
3in the Innovation Development and Economy Act, collected under
4this Section during the second preceding calendar month for
5sales within a STAR bond district. The Department shall make
6this certification only if the Metro East Park and Recreation
7District imposes a tax on real property as provided in the
8definition of "local sales taxes" under the Innovation
9Development and Economy Act.
10    After the monthly transfer to the STAR Bonds Revenue Fund,
11on or before the 25th day of each calendar month, the
12Department shall prepare and certify to the Comptroller the
13disbursement of stated sums of money pursuant to Section 35 of
14this Act to the District from which retailers have paid taxes
15or penalties to the Department during the second preceding
16calendar month. The amount to be paid to the District shall be
17the amount (not including credit memoranda and not including
18taxes and penalties collected on aviation fuel sold on or
19after December 1, 2019 and through December 31, 2020)
20collected under this Section during the second preceding
21calendar month by the Department plus an amount the Department
22determines is necessary to offset any amounts that were
23erroneously paid to a different taxing body, and not including
24(i) an amount equal to the amount of refunds made during the
25second preceding calendar month by the Department on behalf of
26the District, (ii) any amount that the Department determines

 

 

SB0157 Enrolled- 507 -LRB102 10128 HLH 16591 b

1is necessary to offset any amounts that were payable to a
2different taxing body but were erroneously paid to the
3District, (iii) any amounts that are transferred to the STAR
4Bonds Revenue Fund, and (iv) 1.5% of the remainder, which the
5Department shall transfer into the Tax Compliance and
6Administration Fund. The Department, at the time of each
7monthly disbursement to the District, shall prepare and
8certify to the State Comptroller the amount to be transferred
9into the Tax Compliance and Administration Fund under this
10subsection. Within 10 days after receipt by the Comptroller of
11the disbursement certification to the District and the Tax
12Compliance and Administration Fund provided for in this
13Section to be given to the Comptroller by the Department, the
14Comptroller shall cause the orders to be drawn for the
15respective amounts in accordance with directions contained in
16the certification.
17    (d) For the purpose of determining whether a tax
18authorized under this Section is applicable, a retail sale by
19a producer of coal or another mineral mined in Illinois is a
20sale at retail at the place where the coal or other mineral
21mined in Illinois is extracted from the earth. This paragraph
22does not apply to coal or another mineral when it is delivered
23or shipped by the seller to the purchaser at a point outside
24Illinois so that the sale is exempt under the United States
25Constitution as a sale in interstate or foreign commerce.
26    (e) Nothing in this Section shall be construed to

 

 

SB0157 Enrolled- 508 -LRB102 10128 HLH 16591 b

1authorize the board to impose a tax upon the privilege of
2engaging in any business that under the Constitution of the
3United States may not be made the subject of taxation by this
4State.
5    (f) An ordinance imposing a tax under this Section or an
6ordinance extending the imposition of a tax to an additional
7county or counties shall be certified by the board and filed
8with the Department of Revenue either (i) on or before the
9first day of April, whereupon the Department shall proceed to
10administer and enforce the tax as of the first day of July next
11following the filing; or (ii) on or before the first day of
12October, whereupon the Department shall proceed to administer
13and enforce the tax as of the first day of January next
14following the filing.
15    (g) When certifying the amount of a monthly disbursement
16to the District under this Section, the Department shall
17increase or decrease the amounts by an amount necessary to
18offset any misallocation of previous disbursements. The offset
19amount shall be the amount erroneously disbursed within the
20previous 6 months from the time a misallocation is discovered.
21(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
22100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
237-12-19; 101-604, eff. 12-13-19.)
 
24    Section 60-60. The Regional Transportation Authority Act
25is amended by changing Section 4.03 as follows:
 

 

 

SB0157 Enrolled- 509 -LRB102 10128 HLH 16591 b

1    (70 ILCS 3615/4.03)  (from Ch. 111 2/3, par. 704.03)
2    Sec. 4.03. Taxes.
3    (a) In order to carry out any of the powers or purposes of
4the Authority, the Board may by ordinance adopted with the
5concurrence of 12 of the then Directors, impose throughout the
6metropolitan region any or all of the taxes provided in this
7Section. Except as otherwise provided in this Act, taxes
8imposed under this Section and civil penalties imposed
9incident thereto shall be collected and enforced by the State
10Department of Revenue. The Department shall have the power to
11administer and enforce the taxes and to determine all rights
12for refunds for erroneous payments of the taxes. Nothing in
13Public Act 95-708 is intended to invalidate any taxes
14currently imposed by the Authority. The increased vote
15requirements to impose a tax shall only apply to actions taken
16after January 1, 2008 (the effective date of Public Act
1795-708).
18    (b) The Board may impose a public transportation tax upon
19all persons engaged in the metropolitan region in the business
20of selling at retail motor fuel for operation of motor
21vehicles upon public highways. The tax shall be at a rate not
22to exceed 5% of the gross receipts from the sales of motor fuel
23in the course of the business. As used in this Act, the term
24"motor fuel" shall have the same meaning as in the Motor Fuel
25Tax Law. The Board may provide for details of the tax. The

 

 

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1provisions of any tax shall conform, as closely as may be
2practicable, to the provisions of the Municipal Retailers
3Occupation Tax Act, including without limitation, conformity
4to penalties with respect to the tax imposed and as to the
5powers of the State Department of Revenue to promulgate and
6enforce rules and regulations relating to the administration
7and enforcement of the provisions of the tax imposed, except
8that reference in the Act to any municipality shall refer to
9the Authority and the tax shall be imposed only with regard to
10receipts from sales of motor fuel in the metropolitan region,
11at rates as limited by this Section.
12    (c) In connection with the tax imposed under paragraph (b)
13of this Section, the Board may impose a tax upon the privilege
14of using in the metropolitan region motor fuel for the
15operation of a motor vehicle upon public highways, the tax to
16be at a rate not in excess of the rate of tax imposed under
17paragraph (b) of this Section. The Board may provide for
18details of the tax.
19    (d) The Board may impose a motor vehicle parking tax upon
20the privilege of parking motor vehicles at off-street parking
21facilities in the metropolitan region at which a fee is
22charged, and may provide for reasonable classifications in and
23exemptions to the tax, for administration and enforcement
24thereof and for civil penalties and refunds thereunder and may
25provide criminal penalties thereunder, the maximum penalties
26not to exceed the maximum criminal penalties provided in the

 

 

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1Retailers' Occupation Tax Act. The Authority may collect and
2enforce the tax itself or by contract with any unit of local
3government. The State Department of Revenue shall have no
4responsibility for the collection and enforcement unless the
5Department agrees with the Authority to undertake the
6collection and enforcement. As used in this paragraph, the
7term "parking facility" means a parking area or structure
8having parking spaces for more than 2 vehicles at which motor
9vehicles are permitted to park in return for an hourly, daily,
10or other periodic fee, whether publicly or privately owned,
11but does not include parking spaces on a public street, the use
12of which is regulated by parking meters.
13    (e) The Board may impose a Regional Transportation
14Authority Retailers' Occupation Tax upon all persons engaged
15in the business of selling tangible personal property at
16retail in the metropolitan region. In Cook County, the tax
17rate shall be 1.25% of the gross receipts from sales of
18tangible personal property taxed at the 1% rate under the
19Retailers' Occupation Tax Act (or at the 0% rate imposed under
20this amendatory Act of the 102nd General Assembly), and 1% of
21the gross receipts from other taxable sales made in the course
22of that business. In DuPage, Kane, Lake, McHenry, and Will
23counties, the tax rate shall be 0.75% of the gross receipts
24from all taxable sales made in the course of that business. The
25rate of tax imposed in DuPage, Kane, Lake, McHenry, and Will
26counties under this Section on sales of aviation fuel on or

 

 

SB0157 Enrolled- 512 -LRB102 10128 HLH 16591 b

1after December 1, 2019 shall, however, be 0.25% unless the
2Regional Transportation Authority in DuPage, Kane, Lake,
3McHenry, and Will counties has an "airport-related purpose"
4and the additional 0.50% of the 0.75% tax on aviation fuel is
5expended for airport-related purposes. If there is no
6airport-related purpose to which aviation fuel tax revenue is
7dedicated, then aviation fuel is excluded from the additional
80.50% of the 0.75% tax. The tax imposed under this Section and
9all civil penalties that may be assessed as an incident
10thereof shall be collected and enforced by the State
11Department of Revenue. The Department shall have full power to
12administer and enforce this Section; to collect all taxes and
13penalties so collected in the manner hereinafter provided; and
14to determine all rights to credit memoranda arising on account
15of the erroneous payment of tax or penalty hereunder. In the
16administration of, and compliance with this Section, the
17Department and persons who are subject to this Section shall
18have the same rights, remedies, privileges, immunities,
19powers, and duties, and be subject to the same conditions,
20restrictions, limitations, penalties, exclusions, exemptions,
21and definitions of terms, and employ the same modes of
22procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
231e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
24therein other than the State rate of tax), 2c, 3 (except as to
25the disposition of taxes and penalties collected, and except
26that the retailer's discount is not allowed for taxes paid on

 

 

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1aviation fuel that are subject to the revenue use requirements
2of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
35d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
410, 11, 12, and 13 of the Retailers' Occupation Tax Act and
5Section 3-7 of the Uniform Penalty and Interest Act, as fully
6as if those provisions were set forth herein.
7    The Board and DuPage, Kane, Lake, McHenry, and Will
8counties must comply with the certification requirements for
9airport-related purposes under Section 2-22 of the Retailers'
10Occupation Tax Act. For purposes of this Section,
11"airport-related purposes" has the meaning ascribed in Section
126z-20.2 of the State Finance Act. This exclusion for aviation
13fuel only applies for so long as the revenue use requirements
14of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
15Authority.
16    Persons subject to any tax imposed under the authority
17granted in this Section may reimburse themselves for their
18seller's tax liability hereunder by separately stating the tax
19as an additional charge, which charge may be stated in
20combination in a single amount with State taxes that sellers
21are required to collect under the Use Tax Act, under any
22bracket schedules the Department may prescribe.
23    Whenever the Department determines that a refund should be
24made under this Section to a claimant instead of issuing a
25credit memorandum, the Department shall notify the State
26Comptroller, who shall cause the warrant to be drawn for the

 

 

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1amount specified, and to the person named, in the notification
2from the Department. The refund shall be paid by the State
3Treasurer out of the Regional Transportation Authority tax
4fund established under paragraph (n) of this Section or the
5Local Government Aviation Trust Fund, as appropriate.
6    If a tax is imposed under this subsection (e), a tax shall
7also be imposed under subsections (f) and (g) of this Section.
8    For the purpose of determining whether a tax authorized
9under this Section is applicable, a retail sale by a producer
10of coal or other mineral mined in Illinois, is a sale at retail
11at the place where the coal or other mineral mined in Illinois
12is extracted from the earth. This paragraph does not apply to
13coal or other mineral when it is delivered or shipped by the
14seller to the purchaser at a point outside Illinois so that the
15sale is exempt under the Federal Constitution as a sale in
16interstate or foreign commerce.
17    No tax shall be imposed or collected under this subsection
18on the sale of a motor vehicle in this State to a resident of
19another state if that motor vehicle will not be titled in this
20State.
21    Nothing in this Section shall be construed to authorize
22the Regional Transportation Authority to impose a tax upon the
23privilege of engaging in any business that under the
24Constitution of the United States may not be made the subject
25of taxation by this State.
26    (f) If a tax has been imposed under paragraph (e), a

 

 

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1Regional Transportation Authority Service Occupation Tax shall
2also be imposed upon all persons engaged, in the metropolitan
3region in the business of making sales of service, who as an
4incident to making the sales of service, transfer tangible
5personal property within the metropolitan region, either in
6the form of tangible personal property or in the form of real
7estate as an incident to a sale of service. In Cook County, the
8tax rate shall be: (1) 1.25% of the serviceman's cost price of
9food prepared for immediate consumption and transferred
10incident to a sale of service subject to the service
11occupation tax by an entity licensed under the Hospital
12Licensing Act, the Nursing Home Care Act, the Specialized
13Mental Health Rehabilitation Act of 2013, the ID/DD Community
14Care Act, or the MC/DD Act that is located in the metropolitan
15region; (2) 1.25% of the selling price of tangible personal
16property taxed at the 1% rate under the Service Occupation Tax
17Act (or at the 0% rate imposed under this amendatory Act of the
18102nd General Assembly); and (3) 1% of the selling price from
19other taxable sales of tangible personal property transferred.
20In DuPage, Kane, Lake, McHenry, and Will counties, the rate
21shall be 0.75% of the selling price of all tangible personal
22property transferred. The rate of tax imposed in DuPage, Kane,
23Lake, McHenry, and Will counties under this Section on sales
24of aviation fuel on or after December 1, 2019 shall, however,
25be 0.25% unless the Regional Transportation Authority in
26DuPage, Kane, Lake, McHenry, and Will counties has an

 

 

SB0157 Enrolled- 516 -LRB102 10128 HLH 16591 b

1"airport-related purpose" and the additional 0.50% of the
20.75% tax on aviation fuel is expended for airport-related
3purposes. If there is no airport-related purpose to which
4aviation fuel tax revenue is dedicated, then aviation fuel is
5excluded from the additional 0.5% of the 0.75% tax.
6    The Board and DuPage, Kane, Lake, McHenry, and Will
7counties must comply with the certification requirements for
8airport-related purposes under Section 2-22 of the Retailers'
9Occupation Tax Act. For purposes of this Section,
10"airport-related purposes" has the meaning ascribed in Section
116z-20.2 of the State Finance Act. This exclusion for aviation
12fuel only applies for so long as the revenue use requirements
13of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
14Authority.
15    The tax imposed under this paragraph and all civil
16penalties that may be assessed as an incident thereof shall be
17collected and enforced by the State Department of Revenue. The
18Department shall have full power to administer and enforce
19this paragraph; to collect all taxes and penalties due
20hereunder; to dispose of taxes and penalties collected in the
21manner hereinafter provided; and to determine all rights to
22credit memoranda arising on account of the erroneous payment
23of tax or penalty hereunder. In the administration of and
24compliance with this paragraph, the Department and persons who
25are subject to this paragraph shall have the same rights,
26remedies, privileges, immunities, powers, and duties, and be

 

 

SB0157 Enrolled- 517 -LRB102 10128 HLH 16591 b

1subject to the same conditions, restrictions, limitations,
2penalties, exclusions, exemptions, and definitions of terms,
3and employ the same modes of procedure, as are prescribed in
4Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
5provisions therein other than the State rate of tax), 4
6(except that the reference to the State shall be to the
7Authority), 5, 7, 8 (except that the jurisdiction to which the
8tax shall be a debt to the extent indicated in that Section 8
9shall be the Authority), 9 (except as to the disposition of
10taxes and penalties collected, and except that the returned
11merchandise credit for this tax may not be taken against any
12State tax, and except that the retailer's discount is not
13allowed for taxes paid on aviation fuel that are subject to the
14revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1547133), 10, 11, 12 (except the reference therein to Section 2b
16of the Retailers' Occupation Tax Act), 13 (except that any
17reference to the State shall mean the Authority), the first
18paragraph of Section 15, 16, 17, 18, 19, and 20 of the Service
19Occupation Tax Act and Section 3-7 of the Uniform Penalty and
20Interest Act, as fully as if those provisions were set forth
21herein.
22    Persons subject to any tax imposed under the authority
23granted in this paragraph may reimburse themselves for their
24serviceman's tax liability hereunder by separately stating the
25tax as an additional charge, that charge may be stated in
26combination in a single amount with State tax that servicemen

 

 

SB0157 Enrolled- 518 -LRB102 10128 HLH 16591 b

1are authorized to collect under the Service Use Tax Act, under
2any bracket schedules the Department may prescribe.
3    Whenever the Department determines that a refund should be
4made under this paragraph to a claimant instead of issuing a
5credit memorandum, the Department shall notify the State
6Comptroller, who shall cause the warrant to be drawn for the
7amount specified, and to the person named in the notification
8from the Department. The refund shall be paid by the State
9Treasurer out of the Regional Transportation Authority tax
10fund established under paragraph (n) of this Section or the
11Local Government Aviation Trust Fund, as appropriate.
12    Nothing in this paragraph shall be construed to authorize
13the Authority to impose a tax upon the privilege of engaging in
14any business that under the Constitution of the United States
15may not be made the subject of taxation by the State.
16    (g) If a tax has been imposed under paragraph (e), a tax
17shall also be imposed upon the privilege of using in the
18metropolitan region, any item of tangible personal property
19that is purchased outside the metropolitan region at retail
20from a retailer, and that is titled or registered with an
21agency of this State's government. In Cook County, the tax
22rate shall be 1% of the selling price of the tangible personal
23property, as "selling price" is defined in the Use Tax Act. In
24DuPage, Kane, Lake, McHenry, and Will counties, the tax rate
25shall be 0.75% of the selling price of the tangible personal
26property, as "selling price" is defined in the Use Tax Act. The

 

 

SB0157 Enrolled- 519 -LRB102 10128 HLH 16591 b

1tax shall be collected from persons whose Illinois address for
2titling or registration purposes is given as being in the
3metropolitan region. The tax shall be collected by the
4Department of Revenue for the Regional Transportation
5Authority. The tax must be paid to the State, or an exemption
6determination must be obtained from the Department of Revenue,
7before the title or certificate of registration for the
8property may be issued. The tax or proof of exemption may be
9transmitted to the Department by way of the State agency with
10which, or the State officer with whom, the tangible personal
11property must be titled or registered if the Department and
12the State agency or State officer determine that this
13procedure will expedite the processing of applications for
14title or registration.
15    The Department shall have full power to administer and
16enforce this paragraph; to collect all taxes, penalties, and
17interest due hereunder; to dispose of taxes, penalties, and
18interest collected in the manner hereinafter provided; and to
19determine all rights to credit memoranda or refunds arising on
20account of the erroneous payment of tax, penalty, or interest
21hereunder. In the administration of and compliance with this
22paragraph, the Department and persons who are subject to this
23paragraph shall have the same rights, remedies, privileges,
24immunities, powers, and duties, and be subject to the same
25conditions, restrictions, limitations, penalties, exclusions,
26exemptions, and definitions of terms and employ the same modes

 

 

SB0157 Enrolled- 520 -LRB102 10128 HLH 16591 b

1of procedure, as are prescribed in Sections 2 (except the
2definition of "retailer maintaining a place of business in
3this State"), 3 through 3-80 (except provisions pertaining to
4the State rate of tax, and except provisions concerning
5collection or refunding of the tax by retailers), 4, 11, 12,
612a, 14, 15, 19 (except the portions pertaining to claims by
7retailers and except the last paragraph concerning refunds),
820, 21, and 22 of the Use Tax Act, and are not inconsistent
9with this paragraph, as fully as if those provisions were set
10forth herein.
11    Whenever the Department determines that a refund should be
12made under this paragraph to a claimant instead of issuing a
13credit memorandum, the Department shall notify the State
14Comptroller, who shall cause the order to be drawn for the
15amount specified, and to the person named in the notification
16from the Department. The refund shall be paid by the State
17Treasurer out of the Regional Transportation Authority tax
18fund established under paragraph (n) of this Section.
19    (h) The Authority may impose a replacement vehicle tax of
20$50 on any passenger car as defined in Section 1-157 of the
21Illinois Vehicle Code purchased within the metropolitan region
22by or on behalf of an insurance company to replace a passenger
23car of an insured person in settlement of a total loss claim.
24The tax imposed may not become effective before the first day
25of the month following the passage of the ordinance imposing
26the tax and receipt of a certified copy of the ordinance by the

 

 

SB0157 Enrolled- 521 -LRB102 10128 HLH 16591 b

1Department of Revenue. The Department of Revenue shall collect
2the tax for the Authority in accordance with Sections 3-2002
3and 3-2003 of the Illinois Vehicle Code.
4    The Department shall immediately pay over to the State
5Treasurer, ex officio, as trustee, all taxes collected
6hereunder.
7    As soon as possible after the first day of each month,
8beginning January 1, 2011, upon certification of the
9Department of Revenue, the Comptroller shall order
10transferred, and the Treasurer shall transfer, to the STAR
11Bonds Revenue Fund the local sales tax increment, as defined
12in the Innovation Development and Economy Act, collected under
13this Section during the second preceding calendar month for
14sales within a STAR bond district.
15    After the monthly transfer to the STAR Bonds Revenue Fund,
16on or before the 25th day of each calendar month, the
17Department shall prepare and certify to the Comptroller the
18disbursement of stated sums of money to the Authority. The
19amount to be paid to the Authority shall be the amount
20collected hereunder during the second preceding calendar month
21by the Department, less any amount determined by the
22Department to be necessary for the payment of refunds, and
23less any amounts that are transferred to the STAR Bonds
24Revenue Fund. Within 10 days after receipt by the Comptroller
25of the disbursement certification to the Authority provided
26for in this Section to be given to the Comptroller by the

 

 

SB0157 Enrolled- 522 -LRB102 10128 HLH 16591 b

1Department, the Comptroller shall cause the orders to be drawn
2for that amount in accordance with the directions contained in
3the certification.
4    (i) The Board may not impose any other taxes except as it
5may from time to time be authorized by law to impose.
6    (j) A certificate of registration issued by the State
7Department of Revenue to a retailer under the Retailers'
8Occupation Tax Act or under the Service Occupation Tax Act
9shall permit the registrant to engage in a business that is
10taxed under the tax imposed under paragraphs (b), (e), (f) or
11(g) of this Section and no additional registration shall be
12required under the tax. A certificate issued under the Use Tax
13Act or the Service Use Tax Act shall be applicable with regard
14to any tax imposed under paragraph (c) of this Section.
15    (k) The provisions of any tax imposed under paragraph (c)
16of this Section shall conform as closely as may be practicable
17to the provisions of the Use Tax Act, including without
18limitation conformity as to penalties with respect to the tax
19imposed and as to the powers of the State Department of Revenue
20to promulgate and enforce rules and regulations relating to
21the administration and enforcement of the provisions of the
22tax imposed. The taxes shall be imposed only on use within the
23metropolitan region and at rates as provided in the paragraph.
24    (l) The Board in imposing any tax as provided in
25paragraphs (b) and (c) of this Section, shall, after seeking
26the advice of the State Department of Revenue, provide means

 

 

SB0157 Enrolled- 523 -LRB102 10128 HLH 16591 b

1for retailers, users or purchasers of motor fuel for purposes
2other than those with regard to which the taxes may be imposed
3as provided in those paragraphs to receive refunds of taxes
4improperly paid, which provisions may be at variance with the
5refund provisions as applicable under the Municipal Retailers
6Occupation Tax Act. The State Department of Revenue may
7provide for certificates of registration for users or
8purchasers of motor fuel for purposes other than those with
9regard to which taxes may be imposed as provided in paragraphs
10(b) and (c) of this Section to facilitate the reporting and
11nontaxability of the exempt sales or uses.
12    (m) Any ordinance imposing or discontinuing any tax under
13this Section shall be adopted and a certified copy thereof
14filed with the Department on or before June 1, whereupon the
15Department of Revenue shall proceed to administer and enforce
16this Section on behalf of the Regional Transportation
17Authority as of September 1 next following such adoption and
18filing. Beginning January 1, 1992, an ordinance or resolution
19imposing or discontinuing the tax hereunder shall be adopted
20and a certified copy thereof filed with the Department on or
21before the first day of July, whereupon the Department shall
22proceed to administer and enforce this Section as of the first
23day of October next following such adoption and filing.
24Beginning January 1, 1993, an ordinance or resolution
25imposing, increasing, decreasing, or discontinuing the tax
26hereunder shall be adopted and a certified copy thereof filed

 

 

SB0157 Enrolled- 524 -LRB102 10128 HLH 16591 b

1with the Department, whereupon the Department shall proceed to
2administer and enforce this Section as of the first day of the
3first month to occur not less than 60 days following such
4adoption and filing. Any ordinance or resolution of the
5Authority imposing a tax under this Section and in effect on
6August 1, 2007 shall remain in full force and effect and shall
7be administered by the Department of Revenue under the terms
8and conditions and rates of tax established by such ordinance
9or resolution until the Department begins administering and
10enforcing an increased tax under this Section as authorized by
11Public Act 95-708. The tax rates authorized by Public Act
1295-708 are effective only if imposed by ordinance of the
13Authority.
14    (n) Except as otherwise provided in this subsection (n),
15the State Department of Revenue shall, upon collecting any
16taxes as provided in this Section, pay the taxes over to the
17State Treasurer as trustee for the Authority. The taxes shall
18be held in a trust fund outside the State Treasury. If an
19airport-related purpose has been certified, taxes and
20penalties collected in DuPage, Kane, Lake, McHenry and Will
21counties on aviation fuel sold on or after December 1, 2019
22from the 0.50% of the 0.75% rate shall be immediately paid over
23by the Department to the State Treasurer, ex officio, as
24trustee, for deposit into the Local Government Aviation Trust
25Fund. The Department shall only pay moneys into the Local
26Government Aviation Trust Fund under this Act for so long as

 

 

SB0157 Enrolled- 525 -LRB102 10128 HLH 16591 b

1the revenue use requirements of 49 U.S.C. 47107(b) and 49
2U.S.C. 47133 are binding on the Authority. On or before the
325th day of each calendar month, the State Department of
4Revenue shall prepare and certify to the Comptroller of the
5State of Illinois and to the Authority (i) the amount of taxes
6collected in each county other than Cook County in the
7metropolitan region, (not including, if an airport-related
8purpose has been certified, the taxes and penalties collected
9from the 0.50% of the 0.75% rate on aviation fuel sold on or
10after December 1, 2019 that are deposited into the Local
11Government Aviation Trust Fund) (ii) the amount of taxes
12collected within the City of Chicago, and (iii) the amount
13collected in that portion of Cook County outside of Chicago,
14each amount less the amount necessary for the payment of
15refunds to taxpayers located in those areas described in items
16(i), (ii), and (iii), and less 1.5% of the remainder, which
17shall be transferred from the trust fund into the Tax
18Compliance and Administration Fund. The Department, at the
19time of each monthly disbursement to the Authority, shall
20prepare and certify to the State Comptroller the amount to be
21transferred into the Tax Compliance and Administration Fund
22under this subsection. Within 10 days after receipt by the
23Comptroller of the certification of the amounts, the
24Comptroller shall cause an order to be drawn for the transfer
25of the amount certified into the Tax Compliance and
26Administration Fund and the payment of two-thirds of the

 

 

SB0157 Enrolled- 526 -LRB102 10128 HLH 16591 b

1amounts certified in item (i) of this subsection to the
2Authority and one-third of the amounts certified in item (i)
3of this subsection to the respective counties other than Cook
4County and the amount certified in items (ii) and (iii) of this
5subsection to the Authority.
6    In addition to the disbursement required by the preceding
7paragraph, an allocation shall be made in July 1991 and each
8year thereafter to the Regional Transportation Authority. The
9allocation shall be made in an amount equal to the average
10monthly distribution during the preceding calendar year
11(excluding the 2 months of lowest receipts) and the allocation
12shall include the amount of average monthly distribution from
13the Regional Transportation Authority Occupation and Use Tax
14Replacement Fund. The distribution made in July 1992 and each
15year thereafter under this paragraph and the preceding
16paragraph shall be reduced by the amount allocated and
17disbursed under this paragraph in the preceding calendar year.
18The Department of Revenue shall prepare and certify to the
19Comptroller for disbursement the allocations made in
20accordance with this paragraph.
21    (o) Failure to adopt a budget ordinance or otherwise to
22comply with Section 4.01 of this Act or to adopt a Five-year
23Capital Program or otherwise to comply with paragraph (b) of
24Section 2.01 of this Act shall not affect the validity of any
25tax imposed by the Authority otherwise in conformity with law.
26    (p) At no time shall a public transportation tax or motor

 

 

SB0157 Enrolled- 527 -LRB102 10128 HLH 16591 b

1vehicle parking tax authorized under paragraphs (b), (c), and
2(d) of this Section be in effect at the same time as any
3retailers' occupation, use or service occupation tax
4authorized under paragraphs (e), (f), and (g) of this Section
5is in effect.
6    Any taxes imposed under the authority provided in
7paragraphs (b), (c), and (d) shall remain in effect only until
8the time as any tax authorized by paragraph (e), (f), or (g) of
9this Section are imposed and becomes effective. Once any tax
10authorized by paragraph (e), (f), or (g) is imposed the Board
11may not reimpose taxes as authorized in paragraphs (b), (c),
12and (d) of the Section unless any tax authorized by paragraph
13(e), (f), or (g) of this Section becomes ineffective by means
14other than an ordinance of the Board.
15    (q) Any existing rights, remedies and obligations
16(including enforcement by the Regional Transportation
17Authority) arising under any tax imposed under paragraph (b),
18(c), or (d) of this Section shall not be affected by the
19imposition of a tax under paragraph (e), (f), or (g) of this
20Section.
21(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
22100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
237-12-19; 101-604, eff. 12-13-19.)
 
24
ARTICLE 65. SCHOOL SUPPLY HOLIDAY

 

 

 

SB0157 Enrolled- 528 -LRB102 10128 HLH 16591 b

1    Section 65-5. The Use Tax Act is amended by changing
2Sections 3-6, 3-10 and 9 as follows:
 
3    (35 ILCS 105/3-6)
4    Sec. 3-6. Sales tax holiday items.
5    (a) Any The tangible personal property described in this
6subsection is a sales tax holiday item and qualifies for the
71.25% reduced rate of tax for the period set forth in Section
83-10 of this Act (hereinafter referred to as the Sales Tax
9Holiday Period). The reduced rate on these items shall be
10administered under the provisions of subsection (b) of this
11Section. The following items are subject to the reduced rate:
12        (1) Clothing items that each have a retail selling
13    price of less than $125 $100.
14        "Clothing" means, unless otherwise specified in this
15    Section, all human wearing apparel suitable for general
16    use. "Clothing" does not include clothing accessories,
17    protective equipment, or sport or recreational equipment.
18    "Clothing" includes, but is not limited to: household and
19    shop aprons; athletic supporters; bathing suits and caps;
20    belts and suspenders; boots; coats and jackets; ear muffs;
21    footlets; gloves and mittens for general use; hats and
22    caps; hosiery; insoles for shoes; lab coats; neckties;
23    overshoes; pantyhose; rainwear; rubber pants; sandals;
24    scarves; shoes and shoelaces; slippers; sneakers; socks
25    and stockings; steel-toed shoes; underwear; and school

 

 

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1    uniforms.
2        "Clothing accessories" means, but is not limited to:
3    briefcases; cosmetics; hair notions, including, but not
4    limited to barrettes, hair bows, and hair nets; handbags;
5    handkerchiefs; jewelry; non-prescription sunglasses;
6    umbrellas; wallets; watches; and wigs and hair pieces.
7        "Protective equipment" means, but is not limited to:
8    breathing masks; clean room apparel and equipment; ear and
9    hearing protectors; face shields; hard hats; helmets;
10    paint or dust respirators; protective gloves; safety
11    glasses and goggles; safety belts; tool belts; and
12    welder's gloves and masks.
13        "Sport or recreational equipment" means, but is not
14    limited to: ballet and tap shoes; cleated or spiked
15    athletic shoes; gloves, including, but not limited to,
16    baseball, bowling, boxing, hockey, and golf gloves;
17    goggles; hand and elbow guards; life preservers and vests;
18    mouth guards; roller and ice skates; shin guards; shoulder
19    pads; ski boots; waders; and wetsuits and fins.
20        (2) School supplies. "School supplies" means, unless
21    otherwise specified in this Section, items used by a
22    student in a course of study. The purchase of school
23    supplies for use by persons other than students for use in
24    a course of study are not eligible for the reduced rate of
25    tax. "School supplies" do not include school art supplies;
26    school instructional materials; cameras; film and memory

 

 

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1    cards; videocameras, tapes, and videotapes; computers;
2    cell phones; Personal Digital Assistants (PDAs); handheld
3    electronic schedulers; and school computer supplies.
4        "School supplies" includes, but is not limited to:
5    binders; book bags; calculators; cellophane tape;
6    blackboard chalk; compasses; composition books; crayons;
7    erasers; expandable, pocket, plastic, and manila folders;
8    glue, paste, and paste sticks; highlighters; index cards;
9    index card boxes; legal pads; lunch boxes; markers;
10    notebooks; paper, including loose leaf ruled notebook
11    paper, copy paper, graph paper, tracing paper, manila
12    paper, colored paper, poster board, and construction
13    paper; pencils; pencil leads; pens; ink and ink refills
14    for pens; pencil boxes and other school supply boxes;
15    pencil sharpeners; protractors; rulers; scissors; and
16    writing tablets.
17        "School art supply" means an item commonly used by a
18    student in a course of study for artwork and includes only
19    the following items: clay and glazes; acrylic, tempera,
20    and oil paint; paintbrushes for artwork; sketch and
21    drawing pads; and watercolors.
22        "School instructional material" means written material
23    commonly used by a student in a course of study as a
24    reference and to learn the subject being taught and
25    includes only the following items: reference books;
26    reference maps and globes; textbooks; and workbooks.

 

 

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1        "School computer supply" means an item commonly used
2    by a student in a course of study in which a computer is
3    used and applies only to the following items: flashdrives
4    and other computer data storage devices; data storage
5    media, such as diskettes and compact disks; boxes and
6    cases for disk storage; external ports or drives; computer
7    cases; computer cables; computer printers; and printer
8    cartridges, toner, and ink.
9    (b) Administration. Notwithstanding any other provision of
10this Act, the reduced rate of tax under Section 3-10 of this
11Act for clothing and school supplies shall be administered by
12the Department under the provisions of this subsection (b).
13        (1) Bundled sales. Items that qualify for the reduced
14    rate of tax that are bundled together with items that do
15    not qualify for the reduced rate of tax and that are sold
16    for one itemized price will be subject to the reduced rate
17    of tax only if the value of the items that qualify for the
18    reduced rate of tax exceeds the value of the items that do
19    not qualify for the reduced rate of tax.
20        (2) Coupons and discounts. An unreimbursed discount by
21    the seller reduces the sales price of the property so that
22    the discounted sales price determines whether the sales
23    price is within a sales tax holiday price threshold. A
24    coupon or other reduction in the sales price is treated as
25    a discount if the seller is not reimbursed for the coupon
26    or reduction amount by a third party.

 

 

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1        (3) Splitting of items normally sold together.
2    Articles that are normally sold as a single unit must
3    continue to be sold in that manner. Such articles cannot
4    be priced separately and sold as individual items in order
5    to obtain the reduced rate of tax. For example, a pair of
6    shoes cannot have each shoe sold separately so that the
7    sales price of each shoe is within a sales tax holiday
8    price threshold.
9        (4) Rain checks. A rain check is a procedure that
10    allows a customer to purchase an item at a certain price at
11    a later time because the particular item was out of stock.
12    Eligible property that customers purchase during the Sales
13    Tax Holiday Period with the use of a rain check will
14    qualify for the reduced rate of tax regardless of when the
15    rain check was issued. Issuance of a rain check during the
16    Sales Tax Holiday Period will not qualify eligible
17    property for the reduced rate of tax if the property is
18    actually purchased after the Sales Tax Holiday Period.
19        (5) Exchanges. The procedure for an exchange in
20    regards to a sales tax holiday is as follows:
21            (A) If a customer purchases an item of eligible
22        property during the Sales Tax Holiday Period, but
23        later exchanges the item for a similar eligible item,
24        even if a different size, different color, or other
25        feature, no additional tax is due even if the exchange
26        is made after the Sales Tax Holiday Period.

 

 

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1            (B) If a customer purchases an item of eligible
2        property during the Sales Tax Holiday Period, but
3        after the Sales Tax Holiday Period has ended, the
4        customer returns the item and receives credit on the
5        purchase of a different item, the 6.25% general
6        merchandise sales tax rate is due on the sale of the
7        newly purchased item.
8            (C) If a customer purchases an item of eligible
9        property before the Sales Tax Holiday Period, but
10        during the Sales Tax Holiday Period the customer
11        returns the item and receives credit on the purchase
12        of a different item of eligible property, the reduced
13        rate of tax is due on the sale of the new item if the
14        new item is purchased during the Sales Tax Holiday
15        Period.
16        (6) (Blank). Delivery charges. Delivery charges,
17    including shipping, handling and service charges, are part
18    of the sales price of eligible property.
19        (7) Order date and back orders. For the purpose of a
20    sales tax holiday, eligible property qualifies for the
21    reduced rate of tax if: (i) the item is both delivered to
22    and paid for by the customer during the Sales Tax Holiday
23    Period or (ii) the customer orders and pays for the item
24    and the seller accepts the order during the Sales Tax
25    Holiday Period for immediate shipment, even if delivery is
26    made after the Sales Tax Holiday Period. The seller

 

 

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1    accepts an order when the seller has taken action to fill
2    the order for immediate shipment. Actions to fill an order
3    include placement of an "in date" stamp on an order or
4    assignment of an "order number" to an order within the
5    Sales Tax Holiday Period. An order is for immediate
6    shipment when the customer does not request delayed
7    shipment. An order is for immediate shipment
8    notwithstanding that the shipment may be delayed because
9    of a backlog of orders or because stock is currently
10    unavailable to, or on back order by, the seller.
11        (8) Returns. For a 60-day period immediately after the
12    Sales Tax Holiday Period, if a customer returns an item
13    that would qualify for the reduced rate of tax, credit for
14    or refund of sales tax shall be given only at the reduced
15    rate unless the customer provides a receipt or invoice
16    that shows tax was paid at the 6.25% general merchandise
17    rate, or the seller has sufficient documentation to show
18    that tax was paid at the 6.25% general merchandise rate on
19    the specific item. This 60-day period is set solely for
20    the purpose of designating a time period during which the
21    customer must provide documentation that shows that the
22    appropriate sales tax rate was paid on returned
23    merchandise. The 60-day period is not intended to change a
24    seller's policy on the time period during which the seller
25    will accept returns.
26    (c) The Department may implement the provisions of this

 

 

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1Section through the use of emergency rules, along with
2permanent rules filed concurrently with such emergency rules,
3in accordance with the provisions of Section 5-45 of the
4Illinois Administrative Procedure Act. For purposes of the
5Illinois Administrative Procedure Act, the adoption of rules
6to implement the provisions of this Section shall be deemed an
7emergency and necessary for the public interest, safety, and
8welfare.
9(Source: P.A. 96-1012, eff. 7-7-10.)
 
10    (35 ILCS 105/3-10)
11    Sec. 3-10. Rate of tax. Unless otherwise provided in this
12Section, the tax imposed by this Act is at the rate of 6.25% of
13either the selling price or the fair market value, if any, of
14the tangible personal property. In all cases where property
15functionally used or consumed is the same as the property that
16was purchased at retail, then the tax is imposed on the selling
17price of the property. In all cases where property
18functionally used or consumed is a by-product or waste product
19that has been refined, manufactured, or produced from property
20purchased at retail, then the tax is imposed on the lower of
21the fair market value, if any, of the specific property so used
22in this State or on the selling price of the property purchased
23at retail. For purposes of this Section "fair market value"
24means the price at which property would change hands between a
25willing buyer and a willing seller, neither being under any

 

 

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1compulsion to buy or sell and both having reasonable knowledge
2of the relevant facts. The fair market value shall be
3established by Illinois sales by the taxpayer of the same
4property as that functionally used or consumed, or if there
5are no such sales by the taxpayer, then comparable sales or
6purchases of property of like kind and character in Illinois.
7    Beginning on July 1, 2000 and through December 31, 2000,
8with respect to motor fuel, as defined in Section 1.1 of the
9Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
10the Use Tax Act, the tax is imposed at the rate of 1.25%.
11    Beginning on August 6, 2010 through August 15, 2010, and
12beginning again on August 5, 2022 through August 14, 2022,
13with respect to sales tax holiday items as defined in Section
143-6 of this Act, the tax is imposed at the rate of 1.25%.
15    With respect to gasohol, the tax imposed by this Act
16applies to (i) 70% of the proceeds of sales made on or after
17January 1, 1990, and before July 1, 2003, (ii) 80% of the
18proceeds of sales made on or after July 1, 2003 and on or
19before July 1, 2017, and (iii) 100% of the proceeds of sales
20made thereafter. If, at any time, however, the tax under this
21Act on sales of gasohol is imposed at the rate of 1.25%, then
22the tax imposed by this Act applies to 100% of the proceeds of
23sales of gasohol made during that time.
24    With respect to majority blended ethanol fuel, the tax
25imposed by this Act does not apply to the proceeds of sales
26made on or after July 1, 2003 and on or before December 31,

 

 

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12023 but applies to 100% of the proceeds of sales made
2thereafter.
3    With respect to biodiesel blends with no less than 1% and
4no more than 10% biodiesel, the tax imposed by this Act applies
5to (i) 80% of the proceeds of sales made on or after July 1,
62003 and on or before December 31, 2018 and (ii) 100% of the
7proceeds of sales made thereafter. If, at any time, however,
8the tax under this Act on sales of biodiesel blends with no
9less than 1% and no more than 10% biodiesel is imposed at the
10rate of 1.25%, then the tax imposed by this Act applies to 100%
11of the proceeds of sales of biodiesel blends with no less than
121% and no more than 10% biodiesel made during that time.
13    With respect to 100% biodiesel and biodiesel blends with
14more than 10% but no more than 99% biodiesel, the tax imposed
15by this Act does not apply to the proceeds of sales made on or
16after July 1, 2003 and on or before December 31, 2023 but
17applies to 100% of the proceeds of sales made thereafter.
18    With respect to food for human consumption that is to be
19consumed off the premises where it is sold (other than
20alcoholic beverages, food consisting of or infused with adult
21use cannabis, soft drinks, and food that has been prepared for
22immediate consumption) and prescription and nonprescription
23medicines, drugs, medical appliances, products classified as
24Class III medical devices by the United States Food and Drug
25Administration that are used for cancer treatment pursuant to
26a prescription, as well as any accessories and components

 

 

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1related to those devices, modifications to a motor vehicle for
2the purpose of rendering it usable by a person with a
3disability, and insulin, blood sugar testing materials,
4syringes, and needles used by human diabetics, the tax is
5imposed at the rate of 1%. For the purposes of this Section,
6until September 1, 2009: the term "soft drinks" means any
7complete, finished, ready-to-use, non-alcoholic drink, whether
8carbonated or not, including but not limited to soda water,
9cola, fruit juice, vegetable juice, carbonated water, and all
10other preparations commonly known as soft drinks of whatever
11kind or description that are contained in any closed or sealed
12bottle, can, carton, or container, regardless of size; but
13"soft drinks" does not include coffee, tea, non-carbonated
14water, infant formula, milk or milk products as defined in the
15Grade A Pasteurized Milk and Milk Products Act, or drinks
16containing 50% or more natural fruit or vegetable juice.
17    Notwithstanding any other provisions of this Act,
18beginning September 1, 2009, "soft drinks" means non-alcoholic
19beverages that contain natural or artificial sweeteners. "Soft
20drinks" do not include beverages that contain milk or milk
21products, soy, rice or similar milk substitutes, or greater
22than 50% of vegetable or fruit juice by volume.
23    Until August 1, 2009, and notwithstanding any other
24provisions of this Act, "food for human consumption that is to
25be consumed off the premises where it is sold" includes all
26food sold through a vending machine, except soft drinks and

 

 

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1food products that are dispensed hot from a vending machine,
2regardless of the location of the vending machine. Beginning
3August 1, 2009, and notwithstanding any other provisions of
4this Act, "food for human consumption that is to be consumed
5off the premises where it is sold" includes all food sold
6through a vending machine, except soft drinks, candy, and food
7products that are dispensed hot from a vending machine,
8regardless of the location of the vending machine.
9    Notwithstanding any other provisions of this Act,
10beginning September 1, 2009, "food for human consumption that
11is to be consumed off the premises where it is sold" does not
12include candy. For purposes of this Section, "candy" means a
13preparation of sugar, honey, or other natural or artificial
14sweeteners in combination with chocolate, fruits, nuts or
15other ingredients or flavorings in the form of bars, drops, or
16pieces. "Candy" does not include any preparation that contains
17flour or requires refrigeration.
18    Notwithstanding any other provisions of this Act,
19beginning September 1, 2009, "nonprescription medicines and
20drugs" does not include grooming and hygiene products. For
21purposes of this Section, "grooming and hygiene products"
22includes, but is not limited to, soaps and cleaning solutions,
23shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
24lotions and screens, unless those products are available by
25prescription only, regardless of whether the products meet the
26definition of "over-the-counter-drugs". For the purposes of

 

 

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1this paragraph, "over-the-counter-drug" means a drug for human
2use that contains a label that identifies the product as a drug
3as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
4label includes:
5        (A) A "Drug Facts" panel; or
6        (B) A statement of the "active ingredient(s)" with a
7    list of those ingredients contained in the compound,
8    substance or preparation.
9    Beginning on the effective date of this amendatory Act of
10the 98th General Assembly, "prescription and nonprescription
11medicines and drugs" includes medical cannabis purchased from
12a registered dispensing organization under the Compassionate
13Use of Medical Cannabis Program Act.
14    As used in this Section, "adult use cannabis" means
15cannabis subject to tax under the Cannabis Cultivation
16Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
17and does not include cannabis subject to tax under the
18Compassionate Use of Medical Cannabis Program Act.
19    If the property that is purchased at retail from a
20retailer is acquired outside Illinois and used outside
21Illinois before being brought to Illinois for use here and is
22taxable under this Act, the "selling price" on which the tax is
23computed shall be reduced by an amount that represents a
24reasonable allowance for depreciation for the period of prior
25out-of-state use.
26(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;

 

 

SB0157 Enrolled- 541 -LRB102 10128 HLH 16591 b

1102-4, eff. 4-27-21.)
 
2    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
3    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
4and trailers that are required to be registered with an agency
5of this State, each retailer required or authorized to collect
6the tax imposed by this Act shall pay to the Department the
7amount of such tax (except as otherwise provided) at the time
8when he is required to file his return for the period during
9which such tax was collected, less a discount of 2.1% prior to
10January 1, 1990, and 1.75% on and after January 1, 1990, or $5
11per calendar year, whichever is greater, which is allowed to
12reimburse the retailer for expenses incurred in collecting the
13tax, keeping records, preparing and filing returns, remitting
14the tax and supplying data to the Department on request. When
15determining the discount allowed under this Section, retailers
16shall include the amount of tax that would have been due at the
176.25% rate but for the 1.25% rate imposed on sales tax holiday
18items under this amendatory Act of the 102nd General Assembly.
19The discount under this Section is not allowed for the 1.25%
20portion of taxes paid on aviation fuel that is subject to the
21revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2247133. In the case of retailers who report and pay the tax on a
23transaction by transaction basis, as provided in this Section,
24such discount shall be taken with each such tax remittance
25instead of when such retailer files his periodic return. The

 

 

SB0157 Enrolled- 542 -LRB102 10128 HLH 16591 b

1discount allowed under this Section is allowed only for
2returns that are filed in the manner required by this Act. The
3Department may disallow the discount for retailers whose
4certificate of registration is revoked at the time the return
5is filed, but only if the Department's decision to revoke the
6certificate of registration has become final. A retailer need
7not remit that part of any tax collected by him to the extent
8that he is required to remit and does remit the tax imposed by
9the Retailers' Occupation Tax Act, with respect to the sale of
10the same property.
11    Where such tangible personal property is sold under a
12conditional sales contract, or under any other form of sale
13wherein the payment of the principal sum, or a part thereof, is
14extended beyond the close of the period for which the return is
15filed, the retailer, in collecting the tax (except as to motor
16vehicles, watercraft, aircraft, and trailers that are required
17to be registered with an agency of this State), may collect for
18each tax return period, only the tax applicable to that part of
19the selling price actually received during such tax return
20period.
21    Except as provided in this Section, on or before the
22twentieth day of each calendar month, such retailer shall file
23a return for the preceding calendar month. Such return shall
24be filed on forms prescribed by the Department and shall
25furnish such information as the Department may reasonably
26require. On and after January 1, 2018, except for returns for

 

 

SB0157 Enrolled- 543 -LRB102 10128 HLH 16591 b

1motor vehicles, watercraft, aircraft, and trailers that are
2required to be registered with an agency of this State, with
3respect to retailers whose annual gross receipts average
4$20,000 or more, all returns required to be filed pursuant to
5this Act shall be filed electronically. Retailers who
6demonstrate that they do not have access to the Internet or
7demonstrate hardship in filing electronically may petition the
8Department to waive the electronic filing requirement.
9    The Department may require returns to be filed on a
10quarterly basis. If so required, a return for each calendar
11quarter shall be filed on or before the twentieth day of the
12calendar month following the end of such calendar quarter. The
13taxpayer shall also file a return with the Department for each
14of the first two months of each calendar quarter, on or before
15the twentieth day of the following calendar month, stating:
16        1. The name of the seller;
17        2. The address of the principal place of business from
18    which he engages in the business of selling tangible
19    personal property at retail in this State;
20        3. The total amount of taxable receipts received by
21    him during the preceding calendar month from sales of
22    tangible personal property by him during such preceding
23    calendar month, including receipts from charge and time
24    sales, but less all deductions allowed by law;
25        4. The amount of credit provided in Section 2d of this
26    Act;

 

 

SB0157 Enrolled- 544 -LRB102 10128 HLH 16591 b

1        5. The amount of tax due;
2        5-5. The signature of the taxpayer; and
3        6. Such other reasonable information as the Department
4    may require.
5    Each retailer required or authorized to collect the tax
6imposed by this Act on aviation fuel sold at retail in this
7State during the preceding calendar month shall, instead of
8reporting and paying tax on aviation fuel as otherwise
9required by this Section, report and pay such tax on a separate
10aviation fuel tax return. The requirements related to the
11return shall be as otherwise provided in this Section.
12Notwithstanding any other provisions of this Act to the
13contrary, retailers collecting tax on aviation fuel shall file
14all aviation fuel tax returns and shall make all aviation fuel
15tax payments by electronic means in the manner and form
16required by the Department. For purposes of this Section,
17"aviation fuel" means jet fuel and aviation gasoline.
18    If a taxpayer fails to sign a return within 30 days after
19the proper notice and demand for signature by the Department,
20the return shall be considered valid and any amount shown to be
21due on the return shall be deemed assessed.
22    Notwithstanding any other provision of this Act to the
23contrary, retailers subject to tax on cannabis shall file all
24cannabis tax returns and shall make all cannabis tax payments
25by electronic means in the manner and form required by the
26Department.

 

 

SB0157 Enrolled- 545 -LRB102 10128 HLH 16591 b

1    Beginning October 1, 1993, a taxpayer who has an average
2monthly tax liability of $150,000 or more shall make all
3payments required by rules of the Department by electronic
4funds transfer. Beginning October 1, 1994, a taxpayer who has
5an average monthly tax liability of $100,000 or more shall
6make all payments required by rules of the Department by
7electronic funds transfer. Beginning October 1, 1995, a
8taxpayer who has an average monthly tax liability of $50,000
9or more shall make all payments required by rules of the
10Department by electronic funds transfer. Beginning October 1,
112000, a taxpayer who has an annual tax liability of $200,000 or
12more shall make all payments required by rules of the
13Department by electronic funds transfer. The term "annual tax
14liability" shall be the sum of the taxpayer's liabilities
15under this Act, and under all other State and local occupation
16and use tax laws administered by the Department, for the
17immediately preceding calendar year. The term "average monthly
18tax liability" means the sum of the taxpayer's liabilities
19under this Act, and under all other State and local occupation
20and use tax laws administered by the Department, for the
21immediately preceding calendar year divided by 12. Beginning
22on October 1, 2002, a taxpayer who has a tax liability in the
23amount set forth in subsection (b) of Section 2505-210 of the
24Department of Revenue Law shall make all payments required by
25rules of the Department by electronic funds transfer.
26    Before August 1 of each year beginning in 1993, the

 

 

SB0157 Enrolled- 546 -LRB102 10128 HLH 16591 b

1Department shall notify all taxpayers required to make
2payments by electronic funds transfer. All taxpayers required
3to make payments by electronic funds transfer shall make those
4payments for a minimum of one year beginning on October 1.
5    Any taxpayer not required to make payments by electronic
6funds transfer may make payments by electronic funds transfer
7with the permission of the Department.
8    All taxpayers required to make payment by electronic funds
9transfer and any taxpayers authorized to voluntarily make
10payments by electronic funds transfer shall make those
11payments in the manner authorized by the Department.
12    The Department shall adopt such rules as are necessary to
13effectuate a program of electronic funds transfer and the
14requirements of this Section.
15    Before October 1, 2000, if the taxpayer's average monthly
16tax liability to the Department under this Act, the Retailers'
17Occupation Tax Act, the Service Occupation Tax Act, the
18Service Use Tax Act was $10,000 or more during the preceding 4
19complete calendar quarters, he shall file a return with the
20Department each month by the 20th day of the month next
21following the month during which such tax liability is
22incurred and shall make payments to the Department on or
23before the 7th, 15th, 22nd and last day of the month during
24which such liability is incurred. On and after October 1,
252000, if the taxpayer's average monthly tax liability to the
26Department under this Act, the Retailers' Occupation Tax Act,

 

 

SB0157 Enrolled- 547 -LRB102 10128 HLH 16591 b

1the Service Occupation Tax Act, and the Service Use Tax Act was
2$20,000 or more during the preceding 4 complete calendar
3quarters, he shall file a return with the Department each
4month by the 20th day of the month next following the month
5during which such tax liability is incurred and shall make
6payment to the Department on or before the 7th, 15th, 22nd and
7last day of the month during which such liability is incurred.
8If the month during which such tax liability is incurred began
9prior to January 1, 1985, each payment shall be in an amount
10equal to 1/4 of the taxpayer's actual liability for the month
11or an amount set by the Department not to exceed 1/4 of the
12average monthly liability of the taxpayer to the Department
13for the preceding 4 complete calendar quarters (excluding the
14month of highest liability and the month of lowest liability
15in such 4 quarter period). If the month during which such tax
16liability is incurred begins on or after January 1, 1985, and
17prior to January 1, 1987, each payment shall be in an amount
18equal to 22.5% of the taxpayer's actual liability for the
19month or 27.5% of the taxpayer's liability for the same
20calendar month of the preceding year. If the month during
21which such tax liability is incurred begins on or after
22January 1, 1987, and prior to January 1, 1988, each payment
23shall be in an amount equal to 22.5% of the taxpayer's actual
24liability for the month or 26.25% of the taxpayer's liability
25for the same calendar month of the preceding year. If the month
26during which such tax liability is incurred begins on or after

 

 

SB0157 Enrolled- 548 -LRB102 10128 HLH 16591 b

1January 1, 1988, and prior to January 1, 1989, or begins on or
2after January 1, 1996, each payment shall be in an amount equal
3to 22.5% of the taxpayer's actual liability for the month or
425% of the taxpayer's liability for the same calendar month of
5the preceding year. If the month during which such tax
6liability is incurred begins on or after January 1, 1989, and
7prior to January 1, 1996, each payment shall be in an amount
8equal to 22.5% of the taxpayer's actual liability for the
9month or 25% of the taxpayer's liability for the same calendar
10month of the preceding year or 100% of the taxpayer's actual
11liability for the quarter monthly reporting period. The amount
12of such quarter monthly payments shall be credited against the
13final tax liability of the taxpayer's return for that month.
14Before October 1, 2000, once applicable, the requirement of
15the making of quarter monthly payments to the Department shall
16continue until such taxpayer's average monthly liability to
17the Department during the preceding 4 complete calendar
18quarters (excluding the month of highest liability and the
19month of lowest liability) is less than $9,000, or until such
20taxpayer's average monthly liability to the Department as
21computed for each calendar quarter of the 4 preceding complete
22calendar quarter period is less than $10,000. However, if a
23taxpayer can show the Department that a substantial change in
24the taxpayer's business has occurred which causes the taxpayer
25to anticipate that his average monthly tax liability for the
26reasonably foreseeable future will fall below the $10,000

 

 

SB0157 Enrolled- 549 -LRB102 10128 HLH 16591 b

1threshold stated above, then such taxpayer may petition the
2Department for change in such taxpayer's reporting status. On
3and after October 1, 2000, once applicable, the requirement of
4the making of quarter monthly payments to the Department shall
5continue until such taxpayer's average monthly liability to
6the Department during the preceding 4 complete calendar
7quarters (excluding the month of highest liability and the
8month of lowest liability) is less than $19,000 or until such
9taxpayer's average monthly liability to the Department as
10computed for each calendar quarter of the 4 preceding complete
11calendar quarter period is less than $20,000. However, if a
12taxpayer can show the Department that a substantial change in
13the taxpayer's business has occurred which causes the taxpayer
14to anticipate that his average monthly tax liability for the
15reasonably foreseeable future will fall below the $20,000
16threshold stated above, then such taxpayer may petition the
17Department for a change in such taxpayer's reporting status.
18The Department shall change such taxpayer's reporting status
19unless it finds that such change is seasonal in nature and not
20likely to be long term. Quarter monthly payment status shall
21be determined under this paragraph as if the rate reduction to
221.25% in this amendatory Act of the 102nd General Assembly on
23sales tax holiday items had not occurred. For quarter monthly
24payments due on or after July 1, 2023 and through June 30,
252024, "25% of the taxpayer's liability for the same calendar
26month of the preceding year" shall be determined as if the rate

 

 

SB0157 Enrolled- 550 -LRB102 10128 HLH 16591 b

1reduction to 1.25% in this amendatory Act of the 102nd General
2Assembly on sales tax holiday items had not occurred. If any
3such quarter monthly payment is not paid at the time or in the
4amount required by this Section, then the taxpayer shall be
5liable for penalties and interest on the difference between
6the minimum amount due and the amount of such quarter monthly
7payment actually and timely paid, except insofar as the
8taxpayer has previously made payments for that month to the
9Department in excess of the minimum payments previously due as
10provided in this Section. The Department shall make reasonable
11rules and regulations to govern the quarter monthly payment
12amount and quarter monthly payment dates for taxpayers who
13file on other than a calendar monthly basis.
14    If any such payment provided for in this Section exceeds
15the taxpayer's liabilities under this Act, the Retailers'
16Occupation Tax Act, the Service Occupation Tax Act and the
17Service Use Tax Act, as shown by an original monthly return,
18the Department shall issue to the taxpayer a credit memorandum
19no later than 30 days after the date of payment, which
20memorandum may be submitted by the taxpayer to the Department
21in payment of tax liability subsequently to be remitted by the
22taxpayer to the Department or be assigned by the taxpayer to a
23similar taxpayer under this Act, the Retailers' Occupation Tax
24Act, the Service Occupation Tax Act or the Service Use Tax Act,
25in accordance with reasonable rules and regulations to be
26prescribed by the Department, except that if such excess

 

 

SB0157 Enrolled- 551 -LRB102 10128 HLH 16591 b

1payment is shown on an original monthly return and is made
2after December 31, 1986, no credit memorandum shall be issued,
3unless requested by the taxpayer. If no such request is made,
4the taxpayer may credit such excess payment against tax
5liability subsequently to be remitted by the taxpayer to the
6Department under this Act, the Retailers' Occupation Tax Act,
7the Service Occupation Tax Act or the Service Use Tax Act, in
8accordance with reasonable rules and regulations prescribed by
9the Department. If the Department subsequently determines that
10all or any part of the credit taken was not actually due to the
11taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
12be reduced by 2.1% or 1.75% of the difference between the
13credit taken and that actually due, and the taxpayer shall be
14liable for penalties and interest on such difference.
15    If the retailer is otherwise required to file a monthly
16return and if the retailer's average monthly tax liability to
17the Department does not exceed $200, the Department may
18authorize his returns to be filed on a quarter annual basis,
19with the return for January, February, and March of a given
20year being due by April 20 of such year; with the return for
21April, May and June of a given year being due by July 20 of
22such year; with the return for July, August and September of a
23given year being due by October 20 of such year, and with the
24return for October, November and December of a given year
25being due by January 20 of the following year.
26    If the retailer is otherwise required to file a monthly or

 

 

SB0157 Enrolled- 552 -LRB102 10128 HLH 16591 b

1quarterly return and if the retailer's average monthly tax
2liability to the Department does not exceed $50, the
3Department may authorize his returns to be filed on an annual
4basis, with the return for a given year being due by January 20
5of the following year.
6    Such quarter annual and annual returns, as to form and
7substance, shall be subject to the same requirements as
8monthly returns.
9    Notwithstanding any other provision in this Act concerning
10the time within which a retailer may file his return, in the
11case of any retailer who ceases to engage in a kind of business
12which makes him responsible for filing returns under this Act,
13such retailer shall file a final return under this Act with the
14Department not more than one month after discontinuing such
15business.
16    In addition, with respect to motor vehicles, watercraft,
17aircraft, and trailers that are required to be registered with
18an agency of this State, except as otherwise provided in this
19Section, every retailer selling this kind of tangible personal
20property shall file, with the Department, upon a form to be
21prescribed and supplied by the Department, a separate return
22for each such item of tangible personal property which the
23retailer sells, except that if, in the same transaction, (i) a
24retailer of aircraft, watercraft, motor vehicles or trailers
25transfers more than one aircraft, watercraft, motor vehicle or
26trailer to another aircraft, watercraft, motor vehicle or

 

 

SB0157 Enrolled- 553 -LRB102 10128 HLH 16591 b

1trailer retailer for the purpose of resale or (ii) a retailer
2of aircraft, watercraft, motor vehicles, or trailers transfers
3more than one aircraft, watercraft, motor vehicle, or trailer
4to a purchaser for use as a qualifying rolling stock as
5provided in Section 3-55 of this Act, then that seller may
6report the transfer of all the aircraft, watercraft, motor
7vehicles or trailers involved in that transaction to the
8Department on the same uniform invoice-transaction reporting
9return form. For purposes of this Section, "watercraft" means
10a Class 2, Class 3, or Class 4 watercraft as defined in Section
113-2 of the Boat Registration and Safety Act, a personal
12watercraft, or any boat equipped with an inboard motor.
13    In addition, with respect to motor vehicles, watercraft,
14aircraft, and trailers that are required to be registered with
15an agency of this State, every person who is engaged in the
16business of leasing or renting such items and who, in
17connection with such business, sells any such item to a
18retailer for the purpose of resale is, notwithstanding any
19other provision of this Section to the contrary, authorized to
20meet the return-filing requirement of this Act by reporting
21the transfer of all the aircraft, watercraft, motor vehicles,
22or trailers transferred for resale during a month to the
23Department on the same uniform invoice-transaction reporting
24return form on or before the 20th of the month following the
25month in which the transfer takes place. Notwithstanding any
26other provision of this Act to the contrary, all returns filed

 

 

SB0157 Enrolled- 554 -LRB102 10128 HLH 16591 b

1under this paragraph must be filed by electronic means in the
2manner and form as required by the Department.
3    The transaction reporting return in the case of motor
4vehicles or trailers that are required to be registered with
5an agency of this State, shall be the same document as the
6Uniform Invoice referred to in Section 5-402 of the Illinois
7Vehicle Code and must show the name and address of the seller;
8the name and address of the purchaser; the amount of the
9selling price including the amount allowed by the retailer for
10traded-in property, if any; the amount allowed by the retailer
11for the traded-in tangible personal property, if any, to the
12extent to which Section 2 of this Act allows an exemption for
13the value of traded-in property; the balance payable after
14deducting such trade-in allowance from the total selling
15price; the amount of tax due from the retailer with respect to
16such transaction; the amount of tax collected from the
17purchaser by the retailer on such transaction (or satisfactory
18evidence that such tax is not due in that particular instance,
19if that is claimed to be the fact); the place and date of the
20sale; a sufficient identification of the property sold; such
21other information as is required in Section 5-402 of the
22Illinois Vehicle Code, and such other information as the
23Department may reasonably require.
24    The transaction reporting return in the case of watercraft
25and aircraft must show the name and address of the seller; the
26name and address of the purchaser; the amount of the selling

 

 

SB0157 Enrolled- 555 -LRB102 10128 HLH 16591 b

1price including the amount allowed by the retailer for
2traded-in property, if any; the amount allowed by the retailer
3for the traded-in tangible personal property, if any, to the
4extent to which Section 2 of this Act allows an exemption for
5the value of traded-in property; the balance payable after
6deducting such trade-in allowance from the total selling
7price; the amount of tax due from the retailer with respect to
8such transaction; the amount of tax collected from the
9purchaser by the retailer on such transaction (or satisfactory
10evidence that such tax is not due in that particular instance,
11if that is claimed to be the fact); the place and date of the
12sale, a sufficient identification of the property sold, and
13such other information as the Department may reasonably
14require.
15    Such transaction reporting return shall be filed not later
16than 20 days after the date of delivery of the item that is
17being sold, but may be filed by the retailer at any time sooner
18than that if he chooses to do so. The transaction reporting
19return and tax remittance or proof of exemption from the tax
20that is imposed by this Act may be transmitted to the
21Department by way of the State agency with which, or State
22officer with whom, the tangible personal property must be
23titled or registered (if titling or registration is required)
24if the Department and such agency or State officer determine
25that this procedure will expedite the processing of
26applications for title or registration.

 

 

SB0157 Enrolled- 556 -LRB102 10128 HLH 16591 b

1    With each such transaction reporting return, the retailer
2shall remit the proper amount of tax due (or shall submit
3satisfactory evidence that the sale is not taxable if that is
4the case), to the Department or its agents, whereupon the
5Department shall issue, in the purchaser's name, a tax receipt
6(or a certificate of exemption if the Department is satisfied
7that the particular sale is tax exempt) which such purchaser
8may submit to the agency with which, or State officer with
9whom, he must title or register the tangible personal property
10that is involved (if titling or registration is required) in
11support of such purchaser's application for an Illinois
12certificate or other evidence of title or registration to such
13tangible personal property.
14    No retailer's failure or refusal to remit tax under this
15Act precludes a user, who has paid the proper tax to the
16retailer, from obtaining his certificate of title or other
17evidence of title or registration (if titling or registration
18is required) upon satisfying the Department that such user has
19paid the proper tax (if tax is due) to the retailer. The
20Department shall adopt appropriate rules to carry out the
21mandate of this paragraph.
22    If the user who would otherwise pay tax to the retailer
23wants the transaction reporting return filed and the payment
24of tax or proof of exemption made to the Department before the
25retailer is willing to take these actions and such user has not
26paid the tax to the retailer, such user may certify to the fact

 

 

SB0157 Enrolled- 557 -LRB102 10128 HLH 16591 b

1of such delay by the retailer, and may (upon the Department
2being satisfied of the truth of such certification) transmit
3the information required by the transaction reporting return
4and the remittance for tax or proof of exemption directly to
5the Department and obtain his tax receipt or exemption
6determination, in which event the transaction reporting return
7and tax remittance (if a tax payment was required) shall be
8credited by the Department to the proper retailer's account
9with the Department, but without the 2.1% or 1.75% discount
10provided for in this Section being allowed. When the user pays
11the tax directly to the Department, he shall pay the tax in the
12same amount and in the same form in which it would be remitted
13if the tax had been remitted to the Department by the retailer.
14    Where a retailer collects the tax with respect to the
15selling price of tangible personal property which he sells and
16the purchaser thereafter returns such tangible personal
17property and the retailer refunds the selling price thereof to
18the purchaser, such retailer shall also refund, to the
19purchaser, the tax so collected from the purchaser. When
20filing his return for the period in which he refunds such tax
21to the purchaser, the retailer may deduct the amount of the tax
22so refunded by him to the purchaser from any other use tax
23which such retailer may be required to pay or remit to the
24Department, as shown by such return, if the amount of the tax
25to be deducted was previously remitted to the Department by
26such retailer. If the retailer has not previously remitted the

 

 

SB0157 Enrolled- 558 -LRB102 10128 HLH 16591 b

1amount of such tax to the Department, he is entitled to no
2deduction under this Act upon refunding such tax to the
3purchaser.
4    Any retailer filing a return under this Section shall also
5include (for the purpose of paying tax thereon) the total tax
6covered by such return upon the selling price of tangible
7personal property purchased by him at retail from a retailer,
8but as to which the tax imposed by this Act was not collected
9from the retailer filing such return, and such retailer shall
10remit the amount of such tax to the Department when filing such
11return.
12    If experience indicates such action to be practicable, the
13Department may prescribe and furnish a combination or joint
14return which will enable retailers, who are required to file
15returns hereunder and also under the Retailers' Occupation Tax
16Act, to furnish all the return information required by both
17Acts on the one form.
18    Where the retailer has more than one business registered
19with the Department under separate registration under this
20Act, such retailer may not file each return that is due as a
21single return covering all such registered businesses, but
22shall file separate returns for each such registered business.
23    Beginning January 1, 1990, each month the Department shall
24pay into the State and Local Sales Tax Reform Fund, a special
25fund in the State Treasury which is hereby created, the net
26revenue realized for the preceding month from the 1% tax

 

 

SB0157 Enrolled- 559 -LRB102 10128 HLH 16591 b

1imposed under this Act.
2    Beginning January 1, 1990, each month the Department shall
3pay into the County and Mass Transit District Fund 4% of the
4net revenue realized for the preceding month from the 6.25%
5general rate on the selling price of tangible personal
6property which is purchased outside Illinois at retail from a
7retailer and which is titled or registered by an agency of this
8State's government.
9    Beginning January 1, 1990, each month the Department shall
10pay into the State and Local Sales Tax Reform Fund, a special
11fund in the State Treasury, 20% of the net revenue realized for
12the preceding month from the 6.25% general rate on the selling
13price of tangible personal property, other than (i) tangible
14personal property which is purchased outside Illinois at
15retail from a retailer and which is titled or registered by an
16agency of this State's government and (ii) aviation fuel sold
17on or after December 1, 2019. This exception for aviation fuel
18only applies for so long as the revenue use requirements of 49
19U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
20    For aviation fuel sold on or after December 1, 2019, each
21month the Department shall pay into the State Aviation Program
22Fund 20% of the net revenue realized for the preceding month
23from the 6.25% general rate on the selling price of aviation
24fuel, less an amount estimated by the Department to be
25required for refunds of the 20% portion of the tax on aviation
26fuel under this Act, which amount shall be deposited into the

 

 

SB0157 Enrolled- 560 -LRB102 10128 HLH 16591 b

1Aviation Fuel Sales Tax Refund Fund. The Department shall only
2pay moneys into the State Aviation Program Fund and the
3Aviation Fuels Sales Tax Refund Fund under this Act for so long
4as the revenue use requirements of 49 U.S.C. 47107(b) and 49
5U.S.C. 47133 are binding on the State.
6    Beginning August 1, 2000, each month the Department shall
7pay into the State and Local Sales Tax Reform Fund 100% of the
8net revenue realized for the preceding month from the 1.25%
9rate on the selling price of motor fuel and gasohol. If, in any
10month, the tax on sales tax holiday items, as defined in
11Section 3-6, is imposed at the rate of 1.25%, then Beginning
12September 1, 2010, each month the Department shall pay into
13the State and Local Sales Tax Reform Fund 100% of the net
14revenue realized for that the preceding month from the 1.25%
15rate on the selling price of sales tax holiday items into the
16State and Local Sales Tax Reform Fund.
17    Beginning January 1, 1990, each month the Department shall
18pay into the Local Government Tax Fund 16% of the net revenue
19realized for the preceding month from the 6.25% general rate
20on the selling price of tangible personal property which is
21purchased outside Illinois at retail from a retailer and which
22is titled or registered by an agency of this State's
23government.
24    Beginning October 1, 2009, each month the Department shall
25pay into the Capital Projects Fund an amount that is equal to
26an amount estimated by the Department to represent 80% of the

 

 

SB0157 Enrolled- 561 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 562 -LRB102 10128 HLH 16591 b

1the average monthly revenues deposited into the fund,
2excluding payments made pursuant to this paragraph.
3    Beginning July 1, 2015, of the remainder of the moneys
4received by the Department under this Act, the Service Use Tax
5Act, the Service Occupation Tax Act, and the Retailers'
6Occupation Tax Act, each month the Department shall deposit
7$500,000 into the State Crime Laboratory Fund.
8    Of the remainder of the moneys received by the Department
9pursuant to this Act, (a) 1.75% thereof shall be paid into the
10Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
11and after July 1, 1989, 3.8% thereof shall be paid into the
12Build Illinois Fund; provided, however, that if in any fiscal
13year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
14may be, of the moneys received by the Department and required
15to be paid into the Build Illinois Fund pursuant to Section 3
16of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
17Act, Section 9 of the Service Use Tax Act, and Section 9 of the
18Service Occupation Tax Act, such Acts being hereinafter called
19the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
20may be, of moneys being hereinafter called the "Tax Act
21Amount", and (2) the amount transferred to the Build Illinois
22Fund from the State and Local Sales Tax Reform Fund shall be
23less than the Annual Specified Amount (as defined in Section 3
24of the Retailers' Occupation Tax Act), an amount equal to the
25difference shall be immediately paid into the Build Illinois
26Fund from other moneys received by the Department pursuant to

 

 

SB0157 Enrolled- 563 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 564 -LRB102 10128 HLH 16591 b

1Budget (now Governor's Office of Management and Budget). If on
2the last business day of any month in which Bonds are
3outstanding pursuant to the Build Illinois Bond Act, the
4aggregate of the moneys deposited in the Build Illinois Bond
5Account in the Build Illinois Fund in such month shall be less
6than the amount required to be transferred in such month from
7the Build Illinois Bond Account to the Build Illinois Bond
8Retirement and Interest Fund pursuant to Section 13 of the
9Build Illinois Bond Act, an amount equal to such deficiency
10shall be immediately paid from other moneys received by the
11Department pursuant to the Tax Acts to the Build Illinois
12Fund; provided, however, that any amounts paid to the Build
13Illinois Fund in any fiscal year pursuant to this sentence
14shall be deemed to constitute payments pursuant to clause (b)
15of the preceding sentence and shall reduce the amount
16otherwise payable for such fiscal year pursuant to clause (b)
17of the preceding sentence. The moneys received by the
18Department pursuant to this Act and required to be deposited
19into the Build Illinois Fund are subject to the pledge, claim
20and charge set forth in Section 12 of the Build Illinois Bond
21Act.
22    Subject to payment of amounts into the Build Illinois Fund
23as provided in the preceding paragraph or in any amendment
24thereto hereafter enacted, the following specified monthly
25installment of the amount requested in the certificate of the
26Chairman of the Metropolitan Pier and Exposition Authority

 

 

SB0157 Enrolled- 565 -LRB102 10128 HLH 16591 b

1provided under Section 8.25f of the State Finance Act, but not
2in excess of the sums designated as "Total Deposit", shall be
3deposited in the aggregate from collections under Section 9 of
4the Use Tax Act, Section 9 of the Service Use Tax Act, Section
59 of the Service Occupation Tax Act, and Section 3 of the
6Retailers' Occupation Tax Act into the McCormick Place
7Expansion Project Fund in the specified fiscal years.
8Fiscal YearTotal Deposit
91993         $0
101994 53,000,000
111995 58,000,000
121996 61,000,000
131997 64,000,000
141998 68,000,000
151999 71,000,000
162000 75,000,000
172001 80,000,000
182002 93,000,000
192003 99,000,000
202004103,000,000
212005108,000,000
222006113,000,000
232007119,000,000
242008126,000,000
252009132,000,000
262010139,000,000

 

 

SB0157 Enrolled- 566 -LRB102 10128 HLH 16591 b

12011146,000,000
22012153,000,000
32013161,000,000
42014170,000,000
52015179,000,000
62016189,000,000
72017199,000,000
82018210,000,000
92019221,000,000
102020233,000,000
112021300,000,000
122022300,000,000
132023300,000,000
142024 300,000,000
152025 300,000,000
162026 300,000,000
172027 375,000,000
182028 375,000,000
192029 375,000,000
202030 375,000,000
212031 375,000,000
222032 375,000,000
232033 375,000,000
242034375,000,000
252035375,000,000
262036450,000,000

 

 

SB0157 Enrolled- 567 -LRB102 10128 HLH 16591 b

1and
2each fiscal year
3thereafter that bonds
4are outstanding under
5Section 13.2 of the
6Metropolitan Pier and
7Exposition Authority Act,
8but not after fiscal year 2060.
9    Beginning July 20, 1993 and in each month of each fiscal
10year thereafter, one-eighth of the amount requested in the
11certificate of the Chairman of the Metropolitan Pier and
12Exposition Authority for that fiscal year, less the amount
13deposited into the McCormick Place Expansion Project Fund by
14the State Treasurer in the respective month under subsection
15(g) of Section 13 of the Metropolitan Pier and Exposition
16Authority Act, plus cumulative deficiencies in the deposits
17required under this Section for previous months and years,
18shall be deposited into the McCormick Place Expansion Project
19Fund, until the full amount requested for the fiscal year, but
20not in excess of the amount specified above as "Total
21Deposit", has been deposited.
22    Subject to payment of amounts into the Capital Projects
23Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
24and the McCormick Place Expansion Project Fund pursuant to the
25preceding paragraphs or in any amendments thereto hereafter
26enacted, for aviation fuel sold on or after December 1, 2019,

 

 

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1the Department shall each month deposit into the Aviation Fuel
2Sales Tax Refund Fund an amount estimated by the Department to
3be required for refunds of the 80% portion of the tax on
4aviation fuel under this Act. The Department shall only
5deposit moneys into the Aviation Fuel Sales Tax Refund Fund
6under this paragraph for so long as the revenue use
7requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
8binding on the State.
9    Subject to payment of amounts into the Build Illinois Fund
10and the McCormick Place Expansion Project Fund pursuant to the
11preceding paragraphs or in any amendments thereto hereafter
12enacted, beginning July 1, 1993 and ending on September 30,
132013, the Department shall each month pay into the Illinois
14Tax Increment Fund 0.27% of 80% of the net revenue realized for
15the preceding month from the 6.25% general rate on the selling
16price of tangible personal property.
17    Subject to payment of amounts into the Build Illinois Fund
18and the McCormick Place Expansion Project Fund pursuant to the
19preceding paragraphs or in any amendments thereto hereafter
20enacted, beginning with the receipt of the first report of
21taxes paid by an eligible business and continuing for a
2225-year period, the Department shall each month pay into the
23Energy Infrastructure Fund 80% of the net revenue realized
24from the 6.25% general rate on the selling price of
25Illinois-mined coal that was sold to an eligible business. For
26purposes of this paragraph, the term "eligible business" means

 

 

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1a new electric generating facility certified pursuant to
2Section 605-332 of the Department of Commerce and Economic
3Opportunity Law of the Civil Administrative Code of Illinois.
4    Subject to payment of amounts into the Build Illinois
5Fund, the McCormick Place Expansion Project Fund, the Illinois
6Tax Increment Fund, and the Energy Infrastructure Fund
7pursuant to the preceding paragraphs or in any amendments to
8this Section hereafter enacted, beginning on the first day of
9the first calendar month to occur on or after August 26, 2014
10(the effective date of Public Act 98-1098), each month, from
11the collections made under Section 9 of the Use Tax Act,
12Section 9 of the Service Use Tax Act, Section 9 of the Service
13Occupation Tax Act, and Section 3 of the Retailers' Occupation
14Tax Act, the Department shall pay into the Tax Compliance and
15Administration Fund, to be used, subject to appropriation, to
16fund additional auditors and compliance personnel at the
17Department of Revenue, an amount equal to 1/12 of 5% of 80% of
18the cash receipts collected during the preceding fiscal year
19by the Audit Bureau of the Department under the Use Tax Act,
20the Service Use Tax Act, the Service Occupation Tax Act, the
21Retailers' Occupation Tax Act, and associated local occupation
22and use taxes administered by the Department.
23    Subject to payments of amounts into the Build Illinois
24Fund, the McCormick Place Expansion Project Fund, the Illinois
25Tax Increment Fund, the Energy Infrastructure Fund, and the
26Tax Compliance and Administration Fund as provided in this

 

 

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1Section, beginning on July 1, 2018 the Department shall pay
2each month into the Downstate Public Transportation Fund the
3moneys required to be so paid under Section 2-3 of the
4Downstate Public Transportation Act.
5    Subject to successful execution and delivery of a
6public-private agreement between the public agency and private
7entity and completion of the civic build, beginning on July 1,
82023, of the remainder of the moneys received by the
9Department under the Use Tax Act, the Service Use Tax Act, the
10Service Occupation Tax Act, and this Act, the Department shall
11deposit the following specified deposits in the aggregate from
12collections under the Use Tax Act, the Service Use Tax Act, the
13Service Occupation Tax Act, and the Retailers' Occupation Tax
14Act, as required under Section 8.25g of the State Finance Act
15for distribution consistent with the Public-Private
16Partnership for Civic and Transit Infrastructure Project Act.
17The moneys received by the Department pursuant to this Act and
18required to be deposited into the Civic and Transit
19Infrastructure Fund are subject to the pledge, claim, and
20charge set forth in Section 25-55 of the Public-Private
21Partnership for Civic and Transit Infrastructure Project Act.
22As used in this paragraph, "civic build", "private entity",
23"public-private agreement", and "public agency" have the
24meanings provided in Section 25-10 of the Public-Private
25Partnership for Civic and Transit Infrastructure Project Act.
26        Fiscal Year............................Total Deposit

 

 

SB0157 Enrolled- 571 -LRB102 10128 HLH 16591 b

1        2024....................................$200,000,000
2        2025....................................$206,000,000
3        2026....................................$212,200,000
4        2027....................................$218,500,000
5        2028....................................$225,100,000
6        2029....................................$288,700,000
7        2030....................................$298,900,000
8        2031....................................$309,300,000
9        2032....................................$320,100,000
10        2033....................................$331,200,000
11        2034....................................$341,200,000
12        2035....................................$351,400,000
13        2036....................................$361,900,000
14        2037....................................$372,800,000
15        2038....................................$384,000,000
16        2039....................................$395,500,000
17        2040....................................$407,400,000
18        2041....................................$419,600,000
19        2042....................................$432,200,000
20        2043....................................$445,100,000
21    Beginning July 1, 2021 and until July 1, 2022, subject to
22the payment of amounts into the State and Local Sales Tax
23Reform Fund, the Build Illinois Fund, the McCormick Place
24Expansion Project Fund, the Illinois Tax Increment Fund, the
25Energy Infrastructure Fund, and the Tax Compliance and
26Administration Fund as provided in this Section, the

 

 

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1Department shall pay each month into the Road Fund the amount
2estimated to represent 16% of the net revenue realized from
3the taxes imposed on motor fuel and gasohol. Beginning July 1,
42022 and until July 1, 2023, subject to the payment of amounts
5into the State and Local Sales Tax Reform Fund, the Build
6Illinois Fund, the McCormick Place Expansion Project Fund, the
7Illinois Tax Increment Fund, the Energy Infrastructure Fund,
8and the Tax Compliance and Administration Fund as provided in
9this Section, the Department shall pay each month into the
10Road Fund the amount estimated to represent 32% of the net
11revenue realized from the taxes imposed on motor fuel and
12gasohol. Beginning July 1, 2023 and until July 1, 2024,
13subject to the payment of amounts into the State and Local
14Sales Tax Reform Fund, the Build Illinois Fund, the McCormick
15Place Expansion Project Fund, the Illinois Tax Increment Fund,
16the Energy Infrastructure Fund, and the Tax Compliance and
17Administration Fund as provided in this Section, the
18Department shall pay each month into the Road Fund the amount
19estimated to represent 48% of the net revenue realized from
20the taxes imposed on motor fuel and gasohol. Beginning July 1,
212024 and until July 1, 2025, subject to the payment of amounts
22into the State and Local Sales Tax Reform Fund, the Build
23Illinois Fund, the McCormick Place Expansion Project Fund, the
24Illinois Tax Increment Fund, the Energy Infrastructure Fund,
25and the Tax Compliance and Administration Fund as provided in
26this Section, the Department shall pay each month into the

 

 

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1Road Fund the amount estimated to represent 64% of the net
2revenue realized from the taxes imposed on motor fuel and
3gasohol. Beginning on July 1, 2025, subject to the payment of
4amounts into the State and Local Sales Tax Reform Fund, the
5Build Illinois Fund, the McCormick Place Expansion Project
6Fund, the Illinois Tax Increment Fund, the Energy
7Infrastructure Fund, and the Tax Compliance and Administration
8Fund as provided in this Section, the Department shall pay
9each month into the Road Fund the amount estimated to
10represent 80% of the net revenue realized from the taxes
11imposed on motor fuel and gasohol. As used in this paragraph
12"motor fuel" has the meaning given to that term in Section 1.1
13of the Motor Fuel Tax Act, and "gasohol" has the meaning given
14to that term in Section 3-40 of this Act.
15    Of the remainder of the moneys received by the Department
16pursuant to this Act, 75% thereof shall be paid into the State
17Treasury and 25% shall be reserved in a special account and
18used only for the transfer to the Common School Fund as part of
19the monthly transfer from the General Revenue Fund in
20accordance with Section 8a of the State Finance Act.
21    As soon as possible after the first day of each month, upon
22certification of the Department of Revenue, the Comptroller
23shall order transferred and the Treasurer shall transfer from
24the General Revenue Fund to the Motor Fuel Tax Fund an amount
25equal to 1.7% of 80% of the net revenue realized under this Act
26for the second preceding month. Beginning April 1, 2000, this

 

 

SB0157 Enrolled- 574 -LRB102 10128 HLH 16591 b

1transfer is no longer required and shall not be made.
2    Net revenue realized for a month shall be the revenue
3collected by the State pursuant to this Act, less the amount
4paid out during that month as refunds to taxpayers for
5overpayment of liability.
6    For greater simplicity of administration, manufacturers,
7importers and wholesalers whose products are sold at retail in
8Illinois by numerous retailers, and who wish to do so, may
9assume the responsibility for accounting and paying to the
10Department all tax accruing under this Act with respect to
11such sales, if the retailers who are affected do not make
12written objection to the Department to this arrangement.
13(Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18;
14100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article
1515, Section 15-10, eff. 6-5-19; 101-10, Article 25, Section
1625-105, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff.
176-28-19; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
 
18    Section 65-10. The Retailers' Occupation Tax Act is
19amended by changing Sections 2-8, 2-10 and 3 as follows:
 
20    (35 ILCS 120/2-8)
21    Sec. 2-8. Sales tax holiday items.
22    (a) Any The tangible personal property described in this
23subsection is a sales tax holiday item and qualifies for the
241.25% reduced rate of tax for the period set forth in Section

 

 

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12-10 of this Act (hereinafter referred to as the Sales Tax
2Holiday Period). The reduced rate on these items shall be
3administered under the provisions of subsection (b) of this
4Section. The following items are subject to the reduced rate:
5        (1) Clothing items that each have a retail selling
6    price of less than $125 $100.
7        "Clothing" means, unless otherwise specified in this
8    Section, all human wearing apparel suitable for general
9    use. "Clothing" does not include clothing accessories,
10    protective equipment, or sport or recreational equipment.
11    "Clothing" includes, but is not limited to: household and
12    shop aprons; athletic supporters; bathing suits and caps;
13    belts and suspenders; boots; coats and jackets; ear muffs;
14    footlets; gloves and mittens for general use; hats and
15    caps; hosiery; insoles for shoes; lab coats; neckties;
16    overshoes; pantyhose; rainwear; rubber pants; sandals;
17    scarves; shoes and shoelaces; slippers; sneakers; socks
18    and stockings; steel-toed shoes; underwear; and school
19    uniforms.
20        "Clothing accessories" means, but is not limited to:
21    briefcases; cosmetics; hair notions, including, but not
22    limited to barrettes, hair bows, and hair nets; handbags;
23    handkerchiefs; jewelry; non-prescription sunglasses;
24    umbrellas; wallets; watches; and wigs and hair pieces.
25        "Protective equipment" means, but is not limited to:
26    breathing masks; clean room apparel and equipment; ear and

 

 

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1    hearing protectors; face shields; hard hats; helmets;
2    paint or dust respirators; protective gloves; safety
3    glasses and goggles; safety belts; tool belts; and
4    welder's gloves and masks.
5        "Sport or recreational equipment" means, but is not
6    limited to: ballet and tap shoes; cleated or spiked
7    athletic shoes; gloves, including, but not limited to,
8    baseball, bowling, boxing, hockey, and golf gloves;
9    goggles; hand and elbow guards; life preservers and vests;
10    mouth guards; roller and ice skates; shin guards; shoulder
11    pads; ski boots; waders; and wetsuits and fins.
12        (2) School supplies. "School supplies" means, unless
13    otherwise specified in this Section, items used by a
14    student in a course of study. The purchase of school
15    supplies for use by persons other than students for use in
16    a course of study are not eligible for the reduced rate of
17    tax. "School supplies" do not include school art supplies;
18    school instructional materials; cameras; film and memory
19    cards; videocameras, tapes, and videotapes; computers;
20    cell phones; Personal Digital Assistants (PDAs); handheld
21    electronic schedulers; and school computer supplies.
22        "School supplies" includes, but is not limited to:
23    binders; book bags; calculators; cellophane tape;
24    blackboard chalk; compasses; composition books; crayons;
25    erasers; expandable, pocket, plastic, and manila folders;
26    glue, paste, and paste sticks; highlighters; index cards;

 

 

SB0157 Enrolled- 577 -LRB102 10128 HLH 16591 b

1    index card boxes; legal pads; lunch boxes; markers;
2    notebooks; paper, including loose leaf ruled notebook
3    paper, copy paper, graph paper, tracing paper, manila
4    paper, colored paper, poster board, and construction
5    paper; pencils; pencil leads; pens; ink and ink refills
6    for pens; pencil boxes and other school supply boxes;
7    pencil sharpeners; protractors; rulers; scissors; and
8    writing tablets.
9        "School art supply" means an item commonly used by a
10    student in a course of study for artwork and includes only
11    the following items: clay and glazes; acrylic, tempera,
12    and oil paint; paintbrushes for artwork; sketch and
13    drawing pads; and watercolors.
14        "School instructional material" means written material
15    commonly used by a student in a course of study as a
16    reference and to learn the subject being taught and
17    includes only the following items: reference books;
18    reference maps and globes; textbooks; and workbooks.
19        "School computer supply" means an item commonly used
20    by a student in a course of study in which a computer is
21    used and applies only to the following items: flashdrives
22    and other computer data storage devices; data storage
23    media, such as diskettes and compact disks; boxes and
24    cases for disk storage; external ports or drives; computer
25    cases; computer cables; computer printers; and printer
26    cartridges, toner, and ink.

 

 

SB0157 Enrolled- 578 -LRB102 10128 HLH 16591 b

1    (b) Administration. Notwithstanding any other provision of
2this Act, the reduced rate of tax under Section 3-10 of this
3Act for clothing and school supplies shall be administered by
4the Department under the provisions of this subsection (b).
5        (1) Bundled sales. Items that qualify for the reduced
6    rate of tax that are bundled together with items that do
7    not qualify for the reduced rate of tax and that are sold
8    for one itemized price will be subject to the reduced rate
9    of tax only if the value of the items that qualify for the
10    reduced rate of tax exceeds the value of the items that do
11    not qualify for the reduced rate of tax.
12        (2) Coupons and discounts. An unreimbursed discount by
13    the seller reduces the sales price of the property so that
14    the discounted sales price determines whether the sales
15    price is within a sales tax holiday price threshold. A
16    coupon or other reduction in the sales price is treated as
17    a discount if the seller is not reimbursed for the coupon
18    or reduction amount by a third party.
19        (3) Splitting of items normally sold together.
20    Articles that are normally sold as a single unit must
21    continue to be sold in that manner. Such articles cannot
22    be priced separately and sold as individual items in order
23    to obtain the reduced rate of tax. For example, a pair of
24    shoes cannot have each shoe sold separately so that the
25    sales price of each shoe is within a sales tax holiday
26    price threshold.

 

 

SB0157 Enrolled- 579 -LRB102 10128 HLH 16591 b

1        (4) Rain checks. A rain check is a procedure that
2    allows a customer to purchase an item at a certain price at
3    a later time because the particular item was out of stock.
4    Eligible property that customers purchase during the Sales
5    Tax Holiday Period with the use of a rain check will
6    qualify for the reduced rate of tax regardless of when the
7    rain check was issued. Issuance of a rain check during the
8    Sales Tax Holiday Period will not qualify eligible
9    property for the reduced rate of tax if the property is
10    actually purchased after the Sales Tax Holiday Period.
11        (5) Exchanges. The procedure for an exchange in
12    regards to a sales tax holiday is as follows:
13            (A) If a customer purchases an item of eligible
14        property during the Sales Tax Holiday Period, but
15        later exchanges the item for a similar eligible item,
16        even if a different size, different color, or other
17        feature, no additional tax is due even if the exchange
18        is made after the Sales Tax Holiday Period.
19            (B) If a customer purchases an item of eligible
20        property during the Sales Tax Holiday Period, but
21        after the Sales Tax Holiday Period has ended, the
22        customer returns the item and receives credit on the
23        purchase of a different item, the 6.25% general
24        merchandise sales tax rate is due on the sale of the
25        newly purchased item.
26            (C) If a customer purchases an item of eligible

 

 

SB0157 Enrolled- 580 -LRB102 10128 HLH 16591 b

1        property before the Sales Tax Holiday Period, but
2        during the Sales Tax Holiday Period the customer
3        returns the item and receives credit on the purchase
4        of a different item of eligible property, the reduced
5        rate of tax is due on the sale of the new item if the
6        new item is purchased during the Sales Tax Holiday
7        Period.
8        (6) (Blank). Delivery charges. Delivery charges,
9    including shipping, handling and service charges, are part
10    of the sales price of eligible property.
11        (7) Order date and back orders. For the purpose of a
12    sales tax holiday, eligible property qualifies for the
13    reduced rate of tax if: (i) the item is both delivered to
14    and paid for by the customer during the Sales Tax Holiday
15    Period or (ii) the customer orders and pays for the item
16    and the seller accepts the order during the Sales Tax
17    Holiday Period for immediate shipment, even if delivery is
18    made after the Sales Tax Holiday Period. The seller
19    accepts an order when the seller has taken action to fill
20    the order for immediate shipment. Actions to fill an order
21    include placement of an "in date" stamp on an order or
22    assignment of an "order number" to an order within the
23    Sales Tax Holiday Period. An order is for immediate
24    shipment when the customer does not request delayed
25    shipment. An order is for immediate shipment
26    notwithstanding that the shipment may be delayed because

 

 

SB0157 Enrolled- 581 -LRB102 10128 HLH 16591 b

1    of a backlog of orders or because stock is currently
2    unavailable to, or on back order by, the seller.
3        (8) Returns. For a 60-day period immediately after the
4    Sales Tax Holiday Period, if a customer returns an item
5    that would qualify for the reduced rate of tax, credit for
6    or refund of sales tax shall be given only at the reduced
7    rate unless the customer provides a receipt or invoice
8    that shows tax was paid at the 6.25% general merchandise
9    rate, or the seller has sufficient documentation to show
10    that tax was paid at the 6.25% general merchandise rate on
11    the specific item. This 60-day period is set solely for
12    the purpose of designating a time period during which the
13    customer must provide documentation that shows that the
14    appropriate sales tax rate was paid on returned
15    merchandise. The 60-day period is not intended to change a
16    seller's policy on the time period during which the seller
17    will accept returns.
18    (c) The Department may implement the provisions of this
19Section through the use of emergency rules, along with
20permanent rules filed concurrently with such emergency rules,
21in accordance with the provisions of Section 5-45 of the
22Illinois Administrative Procedure Act. For purposes of the
23Illinois Administrative Procedure Act, the adoption of rules
24to implement the provisions of this Section shall be deemed an
25emergency and necessary for the public interest, safety, and
26welfare.

 

 

SB0157 Enrolled- 582 -LRB102 10128 HLH 16591 b

1(Source: P.A. 96-1012, eff. 7-7-10.)
 
2    (35 ILCS 120/2-10)
3    Sec. 2-10. Rate of tax. Unless otherwise provided in this
4Section, the tax imposed by this Act is at the rate of 6.25% of
5gross receipts from sales of tangible personal property made
6in the course of business.
7    Beginning on July 1, 2000 and through December 31, 2000,
8with respect to motor fuel, as defined in Section 1.1 of the
9Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
10the Use Tax Act, the tax is imposed at the rate of 1.25%.
11    Beginning on August 6, 2010 through August 15, 2010, and
12beginning again on August 5, 2022 through August 14, 2022,
13with respect to sales tax holiday items as defined in Section
142-8 of this Act, the tax is imposed at the rate of 1.25%.
15    Within 14 days after the effective date of this amendatory
16Act of the 91st General Assembly, each retailer of motor fuel
17and gasohol shall cause the following notice to be posted in a
18prominently visible place on each retail dispensing device
19that is used to dispense motor fuel or gasohol in the State of
20Illinois: "As of July 1, 2000, the State of Illinois has
21eliminated the State's share of sales tax on motor fuel and
22gasohol through December 31, 2000. The price on this pump
23should reflect the elimination of the tax." The notice shall
24be printed in bold print on a sign that is no smaller than 4
25inches by 8 inches. The sign shall be clearly visible to

 

 

SB0157 Enrolled- 583 -LRB102 10128 HLH 16591 b

1customers. Any retailer who fails to post or maintain a
2required sign through December 31, 2000 is guilty of a petty
3offense for which the fine shall be $500 per day per each
4retail premises where a violation occurs.
5    With respect to gasohol, as defined in the Use Tax Act, the
6tax imposed by this Act applies to (i) 70% of the proceeds of
7sales made on or after January 1, 1990, and before July 1,
82003, (ii) 80% of the proceeds of sales made on or after July
91, 2003 and on or before July 1, 2017, and (iii) 100% of the
10proceeds of sales made thereafter. If, at any time, however,
11the tax under this Act on sales of gasohol, as defined in the
12Use Tax Act, is imposed at the rate of 1.25%, then the tax
13imposed by this Act applies to 100% of the proceeds of sales of
14gasohol made during that time.
15    With respect to majority blended ethanol fuel, as defined
16in the Use Tax Act, the tax imposed by this Act does not apply
17to the proceeds of sales made on or after July 1, 2003 and on
18or before December 31, 2023 but applies to 100% of the proceeds
19of sales made thereafter.
20    With respect to biodiesel blends, as defined in the Use
21Tax Act, with no less than 1% and no more than 10% biodiesel,
22the tax imposed by this Act applies to (i) 80% of the proceeds
23of sales made on or after July 1, 2003 and on or before
24December 31, 2018 and (ii) 100% of the proceeds of sales made
25thereafter. If, at any time, however, the tax under this Act on
26sales of biodiesel blends, as defined in the Use Tax Act, with

 

 

SB0157 Enrolled- 584 -LRB102 10128 HLH 16591 b

1no less than 1% and no more than 10% biodiesel is imposed at
2the rate of 1.25%, then the tax imposed by this Act applies to
3100% of the proceeds of sales of biodiesel blends with no less
4than 1% and no more than 10% biodiesel made during that time.
5    With respect to 100% biodiesel, as defined in the Use Tax
6Act, and biodiesel blends, as defined in the Use Tax Act, with
7more than 10% but no more than 99% biodiesel, the tax imposed
8by this Act does not apply to the proceeds of sales made on or
9after July 1, 2003 and on or before December 31, 2023 but
10applies to 100% of the proceeds of sales made thereafter.
11    With respect to food for human consumption that is to be
12consumed off the premises where it is sold (other than
13alcoholic beverages, food consisting of or infused with adult
14use cannabis, soft drinks, and food that has been prepared for
15immediate consumption) and prescription and nonprescription
16medicines, drugs, medical appliances, products classified as
17Class III medical devices by the United States Food and Drug
18Administration that are used for cancer treatment pursuant to
19a prescription, as well as any accessories and components
20related to those devices, modifications to a motor vehicle for
21the purpose of rendering it usable by a person with a
22disability, and insulin, blood sugar testing materials,
23syringes, and needles used by human diabetics, the tax is
24imposed at the rate of 1%. For the purposes of this Section,
25until September 1, 2009: the term "soft drinks" means any
26complete, finished, ready-to-use, non-alcoholic drink, whether

 

 

SB0157 Enrolled- 585 -LRB102 10128 HLH 16591 b

1carbonated or not, including but not limited to soda water,
2cola, fruit juice, vegetable juice, carbonated water, and all
3other preparations commonly known as soft drinks of whatever
4kind or description that are contained in any closed or sealed
5bottle, can, carton, or container, regardless of size; but
6"soft drinks" does not include coffee, tea, non-carbonated
7water, infant formula, milk or milk products as defined in the
8Grade A Pasteurized Milk and Milk Products Act, or drinks
9containing 50% or more natural fruit or vegetable juice.
10    Notwithstanding any other provisions of this Act,
11beginning September 1, 2009, "soft drinks" means non-alcoholic
12beverages that contain natural or artificial sweeteners. "Soft
13drinks" do not include beverages that contain milk or milk
14products, soy, rice or similar milk substitutes, or greater
15than 50% of vegetable or fruit juice by volume.
16    Until August 1, 2009, and notwithstanding any other
17provisions of this Act, "food for human consumption that is to
18be consumed off the premises where it is sold" includes all
19food sold through a vending machine, except soft drinks and
20food products that are dispensed hot from a vending machine,
21regardless of the location of the vending machine. Beginning
22August 1, 2009, and notwithstanding any other provisions of
23this Act, "food for human consumption that is to be consumed
24off the premises where it is sold" includes all food sold
25through a vending machine, except soft drinks, candy, and food
26products that are dispensed hot from a vending machine,

 

 

SB0157 Enrolled- 586 -LRB102 10128 HLH 16591 b

1regardless of the location of the vending machine.
2    Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "food for human consumption that
4is to be consumed off the premises where it is sold" does not
5include candy. For purposes of this Section, "candy" means a
6preparation of sugar, honey, or other natural or artificial
7sweeteners in combination with chocolate, fruits, nuts or
8other ingredients or flavorings in the form of bars, drops, or
9pieces. "Candy" does not include any preparation that contains
10flour or requires refrigeration.
11    Notwithstanding any other provisions of this Act,
12beginning September 1, 2009, "nonprescription medicines and
13drugs" does not include grooming and hygiene products. For
14purposes of this Section, "grooming and hygiene products"
15includes, but is not limited to, soaps and cleaning solutions,
16shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
17lotions and screens, unless those products are available by
18prescription only, regardless of whether the products meet the
19definition of "over-the-counter-drugs". For the purposes of
20this paragraph, "over-the-counter-drug" means a drug for human
21use that contains a label that identifies the product as a drug
22as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
23label includes:
24        (A) A "Drug Facts" panel; or
25        (B) A statement of the "active ingredient(s)" with a
26    list of those ingredients contained in the compound,

 

 

SB0157 Enrolled- 587 -LRB102 10128 HLH 16591 b

1    substance or preparation.
2    Beginning on the effective date of this amendatory Act of
3the 98th General Assembly, "prescription and nonprescription
4medicines and drugs" includes medical cannabis purchased from
5a registered dispensing organization under the Compassionate
6Use of Medical Cannabis Program Act.
7    As used in this Section, "adult use cannabis" means
8cannabis subject to tax under the Cannabis Cultivation
9Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
10and does not include cannabis subject to tax under the
11Compassionate Use of Medical Cannabis Program Act.
12(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
13102-4, eff. 4-27-21.)
 
14    (35 ILCS 120/3)  (from Ch. 120, par. 442)
15    Sec. 3. Except as provided in this Section, on or before
16the twentieth day of each calendar month, every person engaged
17in the business of selling tangible personal property at
18retail in this State during the preceding calendar month shall
19file a return with the Department, stating:
20        1. The name of the seller;
21        2. His residence address and the address of his
22    principal place of business and the address of the
23    principal place of business (if that is a different
24    address) from which he engages in the business of selling
25    tangible personal property at retail in this State;

 

 

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1        3. Total amount of receipts received by him during the
2    preceding calendar month or quarter, as the case may be,
3    from sales of tangible personal property, and from
4    services furnished, by him during such preceding calendar
5    month or quarter;
6        4. Total amount received by him during the preceding
7    calendar month or quarter on charge and time sales of
8    tangible personal property, and from services furnished,
9    by him prior to the month or quarter for which the return
10    is filed;
11        5. Deductions allowed by law;
12        6. Gross receipts which were received by him during
13    the preceding calendar month or quarter and upon the basis
14    of which the tax is imposed;
15        7. The amount of credit provided in Section 2d of this
16    Act;
17        8. The amount of tax due;
18        9. The signature of the taxpayer; and
19        10. Such other reasonable information as the
20    Department may require.
21    On and after January 1, 2018, except for returns for motor
22vehicles, watercraft, aircraft, and trailers that are required
23to be registered with an agency of this State, with respect to
24retailers whose annual gross receipts average $20,000 or more,
25all returns required to be filed pursuant to this Act shall be
26filed electronically. Retailers who demonstrate that they do

 

 

SB0157 Enrolled- 589 -LRB102 10128 HLH 16591 b

1not have access to the Internet or demonstrate hardship in
2filing electronically may petition the Department to waive the
3electronic filing requirement.
4    If a taxpayer fails to sign a return within 30 days after
5the proper notice and demand for signature by the Department,
6the return shall be considered valid and any amount shown to be
7due on the return shall be deemed assessed.
8    Each return shall be accompanied by the statement of
9prepaid tax issued pursuant to Section 2e for which credit is
10claimed.
11    Prior to October 1, 2003, and on and after September 1,
122004 a retailer may accept a Manufacturer's Purchase Credit
13certification from a purchaser in satisfaction of Use Tax as
14provided in Section 3-85 of the Use Tax Act if the purchaser
15provides the appropriate documentation as required by Section
163-85 of the Use Tax Act. A Manufacturer's Purchase Credit
17certification, accepted by a retailer prior to October 1, 2003
18and on and after September 1, 2004 as provided in Section 3-85
19of the Use Tax Act, may be used by that retailer to satisfy
20Retailers' Occupation Tax liability in the amount claimed in
21the certification, not to exceed 6.25% of the receipts subject
22to tax from a qualifying purchase. A Manufacturer's Purchase
23Credit reported on any original or amended return filed under
24this Act after October 20, 2003 for reporting periods prior to
25September 1, 2004 shall be disallowed. Manufacturer's Purchase
26Purchaser Credit reported on annual returns due on or after

 

 

SB0157 Enrolled- 590 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 591 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 592 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 593 -LRB102 10128 HLH 16591 b

1"electronic means" includes, but is not limited to, the use of
2a secure Internet website, e-mail, or facsimile.
3    If a total amount of less than $1 is payable, refundable or
4creditable, such amount shall be disregarded if it is less
5than 50 cents and shall be increased to $1 if it is 50 cents or
6more.
7    Notwithstanding any other provision of this Act to the
8contrary, retailers subject to tax on cannabis shall file all
9cannabis tax returns and shall make all cannabis tax payments
10by electronic means in the manner and form required by the
11Department.
12    Beginning October 1, 1993, a taxpayer who has an average
13monthly tax liability of $150,000 or more shall make all
14payments required by rules of the Department by electronic
15funds transfer. Beginning October 1, 1994, a taxpayer who has
16an average monthly tax liability of $100,000 or more shall
17make all payments required by rules of the Department by
18electronic funds transfer. Beginning October 1, 1995, a
19taxpayer who has an average monthly tax liability of $50,000
20or more shall make all payments required by rules of the
21Department by electronic funds transfer. Beginning October 1,
222000, a taxpayer who has an annual tax liability of $200,000 or
23more shall make all payments required by rules of the
24Department by electronic funds transfer. The term "annual tax
25liability" shall be the sum of the taxpayer's liabilities
26under this Act, and under all other State and local occupation

 

 

SB0157 Enrolled- 594 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 595 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 596 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 597 -LRB102 10128 HLH 16591 b

1trailers transfers more than one aircraft, watercraft, motor
2vehicle, or trailer to a purchaser for use as a qualifying
3rolling stock as provided in Section 2-5 of this Act, then that
4seller may report the transfer of all aircraft, watercraft,
5motor vehicles or trailers involved in that transaction to the
6Department on the same uniform invoice-transaction reporting
7return form. For purposes of this Section, "watercraft" means
8a Class 2, Class 3, or Class 4 watercraft as defined in Section
93-2 of the Boat Registration and Safety Act, a personal
10watercraft, or any boat equipped with an inboard motor.
11    In addition, with respect to motor vehicles, watercraft,
12aircraft, and trailers that are required to be registered with
13an agency of this State, every person who is engaged in the
14business of leasing or renting such items and who, in
15connection with such business, sells any such item to a
16retailer for the purpose of resale is, notwithstanding any
17other provision of this Section to the contrary, authorized to
18meet the return-filing requirement of this Act by reporting
19the transfer of all the aircraft, watercraft, motor vehicles,
20or trailers transferred for resale during a month to the
21Department on the same uniform invoice-transaction reporting
22return form on or before the 20th of the month following the
23month in which the transfer takes place. Notwithstanding any
24other provision of this Act to the contrary, all returns filed
25under this paragraph must be filed by electronic means in the
26manner and form as required by the Department.

 

 

SB0157 Enrolled- 598 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 599 -LRB102 10128 HLH 16591 b

1other information as is required in Section 5-402 of the
2Illinois Vehicle Code, and such other information as the
3Department may reasonably require.
4    The transaction reporting return in the case of watercraft
5or aircraft must show the name and address of the seller; the
6name and address of the purchaser; the amount of the selling
7price including the amount allowed by the retailer for
8traded-in property, if any; the amount allowed by the retailer
9for the traded-in tangible personal property, if any, to the
10extent to which Section 1 of this Act allows an exemption for
11the value of traded-in property; the balance payable after
12deducting such trade-in allowance from the total selling
13price; the amount of tax due from the retailer with respect to
14such transaction; the amount of tax collected from the
15purchaser by the retailer on such transaction (or satisfactory
16evidence that such tax is not due in that particular instance,
17if that is claimed to be the fact); the place and date of the
18sale, a sufficient identification of the property sold, and
19such other information as the Department may reasonably
20require.
21    Such transaction reporting return shall be filed not later
22than 20 days after the day of delivery of the item that is
23being sold, but may be filed by the retailer at any time sooner
24than that if he chooses to do so. The transaction reporting
25return and tax remittance or proof of exemption from the
26Illinois use tax may be transmitted to the Department by way of

 

 

SB0157 Enrolled- 600 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 601 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 602 -LRB102 10128 HLH 16591 b

1with respect to such receipts.
2    Where the seller is a corporation, the return filed on
3behalf of such corporation shall be signed by the president,
4vice-president, secretary or treasurer or by the properly
5accredited agent of such corporation.
6    Where the seller is a limited liability company, the
7return filed on behalf of the limited liability company shall
8be signed by a manager, member, or properly accredited agent
9of the limited liability company.
10    Except as provided in this Section, the retailer filing
11the return under this Section shall, at the time of filing such
12return, pay to the Department the amount of tax imposed by this
13Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
14on and after January 1, 1990, or $5 per calendar year,
15whichever is greater, which is allowed to reimburse the
16retailer for the expenses incurred in keeping records,
17preparing and filing returns, remitting the tax and supplying
18data to the Department on request. On and after January 1,
192021, a certified service provider, as defined in the Leveling
20the Playing Field for Illinois Retail Act, filing the return
21under this Section on behalf of a remote retailer shall, at the
22time of such return, pay to the Department the amount of tax
23imposed by this Act less a discount of 1.75%. A remote retailer
24using a certified service provider to file a return on its
25behalf, as provided in the Leveling the Playing Field for
26Illinois Retail Act, is not eligible for the discount. When

 

 

SB0157 Enrolled- 603 -LRB102 10128 HLH 16591 b

1determining the discount allowed under this Section, retailers
2shall include the amount of tax that would have been due at the
36.25% rate but for the 1.25% rate imposed on sales tax holiday
4items under this amendatory Act of the 102nd General Assembly.
5The discount under this Section is not allowed for the 1.25%
6portion of taxes paid on aviation fuel that is subject to the
7revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
847133. Any prepayment made pursuant to Section 2d of this Act
9shall be included in the amount on which such 2.1% or 1.75%
10discount is computed. In the case of retailers who report and
11pay the tax on a transaction by transaction basis, as provided
12in this Section, such discount shall be taken with each such
13tax remittance instead of when such retailer files his
14periodic return. The discount allowed under this Section is
15allowed only for returns that are filed in the manner required
16by this Act. The Department may disallow the discount for
17retailers whose certificate of registration is revoked at the
18time the return is filed, but only if the Department's
19decision to revoke the certificate of registration has become
20final.
21    Before October 1, 2000, if the taxpayer's average monthly
22tax liability to the Department under this Act, the Use Tax
23Act, the Service Occupation Tax Act, and the Service Use Tax
24Act, excluding any liability for prepaid sales tax to be
25remitted in accordance with Section 2d of this Act, was
26$10,000 or more during the preceding 4 complete calendar

 

 

SB0157 Enrolled- 604 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 605 -LRB102 10128 HLH 16591 b

1equal to 22.5% of the taxpayer's actual liability for the
2month or 27.5% of the taxpayer's liability for the same
3calendar month of the preceding year. If the month during
4which such tax liability is incurred begins on or after
5January 1, 1987 and prior to January 1, 1988, each payment
6shall be in an amount equal to 22.5% of the taxpayer's actual
7liability for the month or 26.25% of the taxpayer's liability
8for the same calendar month of the preceding year. If the month
9during which such tax liability is incurred begins on or after
10January 1, 1988, and prior to January 1, 1989, or begins on or
11after January 1, 1996, each payment shall be in an amount equal
12to 22.5% of the taxpayer's actual liability for the month or
1325% of the taxpayer's liability for the same calendar month of
14the preceding year. If the month during which such tax
15liability is incurred begins on or after January 1, 1989, and
16prior to January 1, 1996, each payment shall be in an amount
17equal to 22.5% of the taxpayer's actual liability for the
18month or 25% of the taxpayer's liability for the same calendar
19month of the preceding year or 100% of the taxpayer's actual
20liability for the quarter monthly reporting period. The amount
21of such quarter monthly payments shall be credited against the
22final tax liability of the taxpayer's return for that month.
23Before October 1, 2000, once applicable, the requirement of
24the making of quarter monthly payments to the Department by
25taxpayers having an average monthly tax liability of $10,000
26or more as determined in the manner provided above shall

 

 

SB0157 Enrolled- 606 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 607 -LRB102 10128 HLH 16591 b

1to anticipate that his average monthly tax liability for the
2reasonably foreseeable future will fall below the $20,000
3threshold stated above, then such taxpayer may petition the
4Department for a change in such taxpayer's reporting status.
5The Department shall change such taxpayer's reporting status
6unless it finds that such change is seasonal in nature and not
7likely to be long term. Quarter monthly payment status shall
8be determined under this paragraph as if the rate reduction to
91.25% in this amendatory Act of the 102nd General Assembly on
10sales tax holiday items had not occurred. For quarter monthly
11payments due on or after July 1, 2023 and through June 30,
122024, "25% of the taxpayer's liability for the same calendar
13month of the preceding year" shall be determined as if the rate
14reduction to 1.25% in this amendatory Act of the 102nd General
15Assembly on sales tax holiday items had not occurred. If any
16such quarter monthly payment is not paid at the time or in the
17amount required by this Section, then the taxpayer shall be
18liable for penalties and interest on the difference between
19the minimum amount due as a payment and the amount of such
20quarter monthly payment actually and timely paid, except
21insofar as the taxpayer has previously made payments for that
22month to the Department in excess of the minimum payments
23previously due as provided in this Section. The Department
24shall make reasonable rules and regulations to govern the
25quarter monthly payment amount and quarter monthly payment
26dates for taxpayers who file on other than a calendar monthly

 

 

SB0157 Enrolled- 608 -LRB102 10128 HLH 16591 b

1basis.
2    The provisions of this paragraph apply before October 1,
32001. Without regard to whether a taxpayer is required to make
4quarter monthly payments as specified above, any taxpayer who
5is required by Section 2d of this Act to collect and remit
6prepaid taxes and has collected prepaid taxes which average in
7excess of $25,000 per month during the preceding 2 complete
8calendar quarters, shall file a return with the Department as
9required by Section 2f and shall make payments to the
10Department on or before the 7th, 15th, 22nd and last day of the
11month during which such liability is incurred. If the month
12during which such tax liability is incurred began prior to
13September 1, 1985 (the effective date of Public Act 84-221),
14each payment shall be in an amount not less than 22.5% of the
15taxpayer's actual liability under Section 2d. If the month
16during which such tax liability is incurred begins on or after
17January 1, 1986, each payment shall be in an amount equal to
1822.5% of the taxpayer's actual liability for the month or
1927.5% of the taxpayer's liability for the same calendar month
20of the preceding calendar year. If the month during which such
21tax liability is incurred begins on or after January 1, 1987,
22each payment shall be in an amount equal to 22.5% of the
23taxpayer's actual liability for the month or 26.25% of the
24taxpayer's liability for the same calendar month of the
25preceding year. The amount of such quarter monthly payments
26shall be credited against the final tax liability of the

 

 

SB0157 Enrolled- 609 -LRB102 10128 HLH 16591 b

1taxpayer's return for that month filed under this Section or
2Section 2f, as the case may be. Once applicable, the
3requirement of the making of quarter monthly payments to the
4Department pursuant to this paragraph shall continue until
5such taxpayer's average monthly prepaid tax collections during
6the preceding 2 complete calendar quarters is $25,000 or less.
7If any such quarter monthly payment is not paid at the time or
8in the amount required, the taxpayer shall be liable for
9penalties and interest on such difference, except insofar as
10the taxpayer has previously made payments for that month in
11excess of the minimum payments previously due.
12    The provisions of this paragraph apply on and after
13October 1, 2001. Without regard to whether a taxpayer is
14required to make quarter monthly payments as specified above,
15any taxpayer who is required by Section 2d of this Act to
16collect and remit prepaid taxes and has collected prepaid
17taxes that average in excess of $20,000 per month during the
18preceding 4 complete calendar quarters shall file a return
19with the Department as required by Section 2f and shall make
20payments to the Department on or before the 7th, 15th, 22nd and
21last day of the month during which the liability is incurred.
22Each payment shall be in an amount equal to 22.5% of the
23taxpayer's actual liability for the month or 25% of the
24taxpayer's liability for the same calendar month of the
25preceding year. The amount of the quarter monthly payments
26shall be credited against the final tax liability of the

 

 

SB0157 Enrolled- 610 -LRB102 10128 HLH 16591 b

1taxpayer's return for that month filed under this Section or
2Section 2f, as the case may be. Once applicable, the
3requirement of the making of quarter monthly payments to the
4Department pursuant to this paragraph shall continue until the
5taxpayer's average monthly prepaid tax collections during the
6preceding 4 complete calendar quarters (excluding the month of
7highest liability and the month of lowest liability) is less
8than $19,000 or until such taxpayer's average monthly
9liability to the Department as computed for each calendar
10quarter of the 4 preceding complete calendar quarters is less
11than $20,000. If any such quarter monthly payment is not paid
12at the time or in the amount required, the taxpayer shall be
13liable for penalties and interest on such difference, except
14insofar as the taxpayer has previously made payments for that
15month in excess of the minimum payments previously due.
16    If any payment provided for in this Section exceeds the
17taxpayer's liabilities under this Act, the Use Tax Act, the
18Service Occupation Tax Act and the Service Use Tax Act, as
19shown on an original monthly return, the Department shall, if
20requested by the taxpayer, issue to the taxpayer a credit
21memorandum no later than 30 days after the date of payment. The
22credit evidenced by such credit memorandum may be assigned by
23the taxpayer to a similar taxpayer under this Act, the Use Tax
24Act, the Service Occupation Tax Act or the Service Use Tax Act,
25in accordance with reasonable rules and regulations to be
26prescribed by the Department. If no such request is made, the

 

 

SB0157 Enrolled- 611 -LRB102 10128 HLH 16591 b

1taxpayer may credit such excess payment against tax liability
2subsequently to be remitted to the Department under this Act,
3the Use Tax Act, the Service Occupation Tax Act or the Service
4Use Tax Act, in accordance with reasonable rules and
5regulations prescribed by the Department. If the Department
6subsequently determined that all or any part of the credit
7taken was not actually due to the taxpayer, the taxpayer's
82.1% and 1.75% vendor's discount shall be reduced by 2.1% or
91.75% of the difference between the credit taken and that
10actually due, and that taxpayer shall be liable for penalties
11and interest on such difference.
12    If a retailer of motor fuel is entitled to a credit under
13Section 2d of this Act which exceeds the taxpayer's liability
14to the Department under this Act for the month for which the
15taxpayer is filing a return, the Department shall issue the
16taxpayer a credit memorandum for the excess.
17    Beginning January 1, 1990, each month the Department shall
18pay into the Local Government Tax Fund, a special fund in the
19State treasury which is hereby created, the net revenue
20realized for the preceding month from the 1% tax imposed under
21this Act.
22    Beginning January 1, 1990, each month the Department shall
23pay into the County and Mass Transit District Fund, a special
24fund in the State treasury which is hereby created, 4% of the
25net revenue realized for the preceding month from the 6.25%
26general rate other than aviation fuel sold on or after

 

 

SB0157 Enrolled- 612 -LRB102 10128 HLH 16591 b

1December 1, 2019. This exception for aviation fuel only
2applies for so long as the revenue use requirements of 49
3U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
4    Beginning August 1, 2000, each month the Department shall
5pay into the County and Mass Transit District Fund 20% of the
6net revenue realized for the preceding month from the 1.25%
7rate on the selling price of motor fuel and gasohol. If, in any
8month, the tax on sales tax holiday items, as defined in
9Section 2-8, is imposed at the rate of 1.25%, then Beginning
10September 1, 2010, each month the Department shall pay into
11the County and Mass Transit District Fund 20% of the net
12revenue realized for that the preceding month from the 1.25%
13rate on the selling price of sales tax holiday items into the
14County and Mass Transit District Fund.
15    Beginning January 1, 1990, each month the Department shall
16pay into the Local Government Tax Fund 16% of the net revenue
17realized for the preceding month from the 6.25% general rate
18on the selling price of tangible personal property other than
19aviation fuel sold on or after December 1, 2019. This
20exception for aviation fuel only applies for so long as the
21revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2247133 are binding on the State.
23    For aviation fuel sold on or after December 1, 2019, each
24month the Department shall pay into the State Aviation Program
25Fund 20% of the net revenue realized for the preceding month
26from the 6.25% general rate on the selling price of aviation

 

 

SB0157 Enrolled- 613 -LRB102 10128 HLH 16591 b

1fuel, less an amount estimated by the Department to be
2required for refunds of the 20% portion of the tax on aviation
3fuel under this Act, which amount shall be deposited into the
4Aviation Fuel Sales Tax Refund Fund. The Department shall only
5pay moneys into the State Aviation Program Fund and the
6Aviation Fuel Sales Tax Refund Fund under this Act for so long
7as the revenue use requirements of 49 U.S.C. 47107(b) and 49
8U.S.C. 47133 are binding on the State.
9    Beginning August 1, 2000, each month the Department shall
10pay into the Local Government Tax Fund 80% of the net revenue
11realized for the preceding month from the 1.25% rate on the
12selling price of motor fuel and gasohol. If, in any month, the
13tax on sales tax holiday items, as defined in Section 2-8, is
14imposed at the rate of 1.25%, then Beginning September 1,
152010, each month the Department shall pay into the Local
16Government Tax Fund 80% of the net revenue realized for that
17the preceding month from the 1.25% rate on the selling price of
18sales tax holiday items into the Local Government Tax Fund.
19    Beginning October 1, 2009, each month the Department shall
20pay into the Capital Projects Fund an amount that is equal to
21an amount estimated by the Department to represent 80% of the
22net revenue realized for the preceding month from the sale of
23candy, grooming and hygiene products, and soft drinks that had
24been taxed at a rate of 1% prior to September 1, 2009 but that
25are now taxed at 6.25%.
26    Beginning July 1, 2011, each month the Department shall

 

 

SB0157 Enrolled- 614 -LRB102 10128 HLH 16591 b

1pay into the Clean Air Act Permit Fund 80% of the net revenue
2realized for the preceding month from the 6.25% general rate
3on the selling price of sorbents used in Illinois in the
4process of sorbent injection as used to comply with the
5Environmental Protection Act or the federal Clean Air Act, but
6the total payment into the Clean Air Act Permit Fund under this
7Act and the Use Tax Act shall not exceed $2,000,000 in any
8fiscal year.
9    Beginning July 1, 2013, each month the Department shall
10pay into the Underground Storage Tank Fund from the proceeds
11collected under this Act, the Use Tax Act, the Service Use Tax
12Act, and the Service Occupation Tax Act an amount equal to the
13average monthly deficit in the Underground Storage Tank Fund
14during the prior year, as certified annually by the Illinois
15Environmental Protection Agency, but the total payment into
16the Underground Storage Tank Fund under this Act, the Use Tax
17Act, the Service Use Tax Act, and the Service Occupation Tax
18Act shall not exceed $18,000,000 in any State fiscal year. As
19used in this paragraph, the "average monthly deficit" shall be
20equal to the difference between the average monthly claims for
21payment by the fund and the average monthly revenues deposited
22into the fund, excluding payments made pursuant to this
23paragraph.
24    Beginning July 1, 2015, of the remainder of the moneys
25received by the Department under the Use Tax Act, the Service
26Use Tax Act, the Service Occupation Tax Act, and this Act, each

 

 

SB0157 Enrolled- 615 -LRB102 10128 HLH 16591 b

1month the Department shall deposit $500,000 into the State
2Crime Laboratory Fund.
3    Of the remainder of the moneys received by the Department
4pursuant to this Act, (a) 1.75% thereof shall be paid into the
5Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
6and after July 1, 1989, 3.8% thereof shall be paid into the
7Build Illinois Fund; provided, however, that if in any fiscal
8year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
9may be, of the moneys received by the Department and required
10to be paid into the Build Illinois Fund pursuant to this Act,
11Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
12Act, and Section 9 of the Service Occupation Tax Act, such Acts
13being hereinafter called the "Tax Acts" and such aggregate of
142.2% or 3.8%, as the case may be, of moneys being hereinafter
15called the "Tax Act Amount", and (2) the amount transferred to
16the Build Illinois Fund from the State and Local Sales Tax
17Reform Fund shall be less than the Annual Specified Amount (as
18hereinafter defined), an amount equal to the difference shall
19be immediately paid into the Build Illinois Fund from other
20moneys received by the Department pursuant to the Tax Acts;
21the "Annual Specified Amount" means the amounts specified
22below for fiscal years 1986 through 1993:
23Fiscal YearAnnual Specified Amount
241986$54,800,000
251987$76,650,000
261988$80,480,000

 

 

SB0157 Enrolled- 616 -LRB102 10128 HLH 16591 b

11989$88,510,000
21990$115,330,000
31991$145,470,000
41992$182,730,000
51993$206,520,000;
6and means the Certified Annual Debt Service Requirement (as
7defined in Section 13 of the Build Illinois Bond Act) or the
8Tax Act Amount, whichever is greater, for fiscal year 1994 and
9each fiscal year thereafter; and further provided, that if on
10the last business day of any month the sum of (1) the Tax Act
11Amount required to be deposited into the Build Illinois Bond
12Account in the Build Illinois Fund during such month and (2)
13the amount transferred to the Build Illinois Fund from the
14State and Local Sales Tax Reform Fund shall have been less than
151/12 of the Annual Specified Amount, an amount equal to the
16difference shall be immediately paid into the Build Illinois
17Fund from other moneys received by the Department pursuant to
18the Tax Acts; and, further provided, that in no event shall the
19payments required under the preceding proviso result in
20aggregate payments into the Build Illinois Fund pursuant to
21this clause (b) for any fiscal year in excess of the greater of
22(i) the Tax Act Amount or (ii) the Annual Specified Amount for
23such fiscal year. The amounts payable into the Build Illinois
24Fund under clause (b) of the first sentence in this paragraph
25shall be payable only until such time as the aggregate amount
26on deposit under each trust indenture securing Bonds issued

 

 

SB0157 Enrolled- 617 -LRB102 10128 HLH 16591 b

1and outstanding pursuant to the Build Illinois Bond Act is
2sufficient, taking into account any future investment income,
3to fully provide, in accordance with such indenture, for the
4defeasance of or the payment of the principal of, premium, if
5any, and interest on the Bonds secured by such indenture and on
6any Bonds expected to be issued thereafter and all fees and
7costs payable with respect thereto, all as certified by the
8Director of the Bureau of the Budget (now Governor's Office of
9Management and Budget). If on the last business day of any
10month in which Bonds are outstanding pursuant to the Build
11Illinois Bond Act, the aggregate of moneys deposited in the
12Build Illinois Bond Account in the Build Illinois Fund in such
13month shall be less than the amount required to be transferred
14in such month from the Build Illinois Bond Account to the Build
15Illinois Bond Retirement and Interest Fund pursuant to Section
1613 of the Build Illinois Bond Act, an amount equal to such
17deficiency shall be immediately paid from other moneys
18received by the Department pursuant to the Tax Acts to the
19Build Illinois Fund; provided, however, that any amounts paid
20to the Build Illinois Fund in any fiscal year pursuant to this
21sentence shall be deemed to constitute payments pursuant to
22clause (b) of the first sentence of this paragraph and shall
23reduce the amount otherwise payable for such fiscal year
24pursuant to that clause (b). The moneys received by the
25Department pursuant to this Act and required to be deposited
26into the Build Illinois Fund are subject to the pledge, claim

 

 

SB0157 Enrolled- 618 -LRB102 10128 HLH 16591 b

1and charge set forth in Section 12 of the Build Illinois Bond
2Act.
3    Subject to payment of amounts into the Build Illinois Fund
4as provided in the preceding paragraph or in any amendment
5thereto hereafter enacted, the following specified monthly
6installment of the amount requested in the certificate of the
7Chairman of the Metropolitan Pier and Exposition Authority
8provided under Section 8.25f of the State Finance Act, but not
9in excess of sums designated as "Total Deposit", shall be
10deposited in the aggregate from collections under Section 9 of
11the Use Tax Act, Section 9 of the Service Use Tax Act, Section
129 of the Service Occupation Tax Act, and Section 3 of the
13Retailers' Occupation Tax Act into the McCormick Place
14Expansion Project Fund in the specified fiscal years.
15Fiscal YearTotal Deposit
161993         $0
171994 53,000,000
181995 58,000,000
191996 61,000,000
201997 64,000,000
211998 68,000,000
221999 71,000,000
232000 75,000,000
242001 80,000,000
252002 93,000,000
262003 99,000,000

 

 

SB0157 Enrolled- 619 -LRB102 10128 HLH 16591 b

12004103,000,000
22005108,000,000
32006113,000,000
42007119,000,000
52008126,000,000
62009132,000,000
72010139,000,000
82011146,000,000
92012153,000,000
102013161,000,000
112014170,000,000
122015179,000,000
132016189,000,000
142017199,000,000
152018210,000,000
162019221,000,000
172020233,000,000
182021300,000,000
192022300,000,000
202023300,000,000
212024 300,000,000
222025 300,000,000
232026 300,000,000
242027 375,000,000
252028 375,000,000
262029 375,000,000

 

 

SB0157 Enrolled- 620 -LRB102 10128 HLH 16591 b

12030 375,000,000
22031 375,000,000
32032 375,000,000
42033375,000,000
52034375,000,000
62035375,000,000
72036450,000,000
8and
9each fiscal year
10thereafter that bonds
11are outstanding under
12Section 13.2 of the
13Metropolitan Pier and
14Exposition Authority Act,
15but not after fiscal year 2060.
16    Beginning July 20, 1993 and in each month of each fiscal
17year thereafter, one-eighth of the amount requested in the
18certificate of the Chairman of the Metropolitan Pier and
19Exposition Authority for that fiscal year, less the amount
20deposited into the McCormick Place Expansion Project Fund by
21the State Treasurer in the respective month under subsection
22(g) of Section 13 of the Metropolitan Pier and Exposition
23Authority Act, plus cumulative deficiencies in the deposits
24required under this Section for previous months and years,
25shall be deposited into the McCormick Place Expansion Project
26Fund, until the full amount requested for the fiscal year, but

 

 

SB0157 Enrolled- 621 -LRB102 10128 HLH 16591 b

1not in excess of the amount specified above as "Total
2Deposit", has been deposited.
3    Subject to payment of amounts into the Capital Projects
4Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
5and the McCormick Place Expansion Project Fund pursuant to the
6preceding paragraphs or in any amendments thereto hereafter
7enacted, for aviation fuel sold on or after December 1, 2019,
8the Department shall each month deposit into the Aviation Fuel
9Sales Tax Refund Fund an amount estimated by the Department to
10be required for refunds of the 80% portion of the tax on
11aviation fuel under this Act. The Department shall only
12deposit moneys into the Aviation Fuel Sales Tax Refund Fund
13under this paragraph for so long as the revenue use
14requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
15binding on the State.
16    Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning July 1, 1993 and ending on September 30,
202013, the Department shall each month pay into the Illinois
21Tax Increment Fund 0.27% of 80% of the net revenue realized for
22the preceding month from the 6.25% general rate on the selling
23price of tangible personal property.
24    Subject to payment of amounts into the Build Illinois Fund
25and the McCormick Place Expansion Project Fund pursuant to the
26preceding paragraphs or in any amendments thereto hereafter

 

 

SB0157 Enrolled- 622 -LRB102 10128 HLH 16591 b

1enacted, beginning with the receipt of the first report of
2taxes paid by an eligible business and continuing for a
325-year period, the Department shall each month pay into the
4Energy Infrastructure Fund 80% of the net revenue realized
5from the 6.25% general rate on the selling price of
6Illinois-mined coal that was sold to an eligible business. For
7purposes of this paragraph, the term "eligible business" means
8a new electric generating facility certified pursuant to
9Section 605-332 of the Department of Commerce and Economic
10Opportunity Law of the Civil Administrative Code of Illinois.
11    Subject to payment of amounts into the Build Illinois
12Fund, the McCormick Place Expansion Project Fund, the Illinois
13Tax Increment Fund, and the Energy Infrastructure Fund
14pursuant to the preceding paragraphs or in any amendments to
15this Section hereafter enacted, beginning on the first day of
16the first calendar month to occur on or after August 26, 2014
17(the effective date of Public Act 98-1098), each month, from
18the collections made under Section 9 of the Use Tax Act,
19Section 9 of the Service Use Tax Act, Section 9 of the Service
20Occupation Tax Act, and Section 3 of the Retailers' Occupation
21Tax Act, the Department shall pay into the Tax Compliance and
22Administration Fund, to be used, subject to appropriation, to
23fund additional auditors and compliance personnel at the
24Department of Revenue, an amount equal to 1/12 of 5% of 80% of
25the cash receipts collected during the preceding fiscal year
26by the Audit Bureau of the Department under the Use Tax Act,

 

 

SB0157 Enrolled- 623 -LRB102 10128 HLH 16591 b

1the Service Use Tax Act, the Service Occupation Tax Act, the
2Retailers' Occupation Tax Act, and associated local occupation
3and use taxes administered by the Department.
4    Subject to payments of amounts into the Build Illinois
5Fund, the McCormick Place Expansion Project Fund, the Illinois
6Tax Increment Fund, the Energy Infrastructure Fund, and the
7Tax Compliance and Administration Fund as provided in this
8Section, beginning on July 1, 2018 the Department shall pay
9each month into the Downstate Public Transportation Fund the
10moneys required to be so paid under Section 2-3 of the
11Downstate Public Transportation Act.
12    Subject to successful execution and delivery of a
13public-private agreement between the public agency and private
14entity and completion of the civic build, beginning on July 1,
152023, of the remainder of the moneys received by the
16Department under the Use Tax Act, the Service Use Tax Act, the
17Service Occupation Tax Act, and this Act, the Department shall
18deposit the following specified deposits in the aggregate from
19collections under the Use Tax Act, the Service Use Tax Act, the
20Service Occupation Tax Act, and the Retailers' Occupation Tax
21Act, as required under Section 8.25g of the State Finance Act
22for distribution consistent with the Public-Private
23Partnership for Civic and Transit Infrastructure Project Act.
24The moneys received by the Department pursuant to this Act and
25required to be deposited into the Civic and Transit
26Infrastructure Fund are subject to the pledge, claim and

 

 

SB0157 Enrolled- 624 -LRB102 10128 HLH 16591 b

1charge set forth in Section 25-55 of the Public-Private
2Partnership for Civic and Transit Infrastructure Project Act.
3As used in this paragraph, "civic build", "private entity",
4"public-private agreement", and "public agency" have the
5meanings provided in Section 25-10 of the Public-Private
6Partnership for Civic and Transit Infrastructure Project Act.
7        Fiscal Year.............................Total Deposit
8        2024.....................................$200,000,000
9        2025....................................$206,000,000
10        2026....................................$212,200,000
11        2027....................................$218,500,000
12        2028....................................$225,100,000
13        2029....................................$288,700,000
14        2030....................................$298,900,000
15        2031....................................$309,300,000
16        2032....................................$320,100,000
17        2033....................................$331,200,000
18        2034....................................$341,200,000
19        2035....................................$351,400,000
20        2036....................................$361,900,000
21        2037....................................$372,800,000
22        2038....................................$384,000,000
23        2039....................................$395,500,000
24        2040....................................$407,400,000
25        2041....................................$419,600,000
26        2042....................................$432,200,000

 

 

SB0157 Enrolled- 625 -LRB102 10128 HLH 16591 b

1        2043....................................$445,100,000
2    Beginning July 1, 2021 and until July 1, 2022, subject to
3the payment of amounts into the County and Mass Transit
4District Fund, the Local Government Tax Fund, the Build
5Illinois Fund, the McCormick Place Expansion Project Fund, the
6Illinois Tax Increment Fund, the Energy Infrastructure Fund,
7and the Tax Compliance and Administration Fund as provided in
8this Section, the Department shall pay each month into the
9Road Fund the amount estimated to represent 16% of the net
10revenue realized from the taxes imposed on motor fuel and
11gasohol. Beginning July 1, 2022 and until July 1, 2023,
12subject to the payment of amounts into the County and Mass
13Transit District Fund, the Local Government Tax Fund, the
14Build Illinois Fund, the McCormick Place Expansion Project
15Fund, the Illinois Tax Increment Fund, the Energy
16Infrastructure Fund, and the Tax Compliance and Administration
17Fund as provided in this Section, the Department shall pay
18each month into the Road Fund the amount estimated to
19represent 32% of the net revenue realized from the taxes
20imposed on motor fuel and gasohol. Beginning July 1, 2023 and
21until July 1, 2024, subject to the payment of amounts into the
22County and Mass Transit District Fund, the Local Government
23Tax Fund, the Build Illinois Fund, the McCormick Place
24Expansion Project Fund, the Illinois Tax Increment Fund, the
25Energy Infrastructure Fund, and the Tax Compliance and
26Administration Fund as provided in this Section, the

 

 

SB0157 Enrolled- 626 -LRB102 10128 HLH 16591 b

1Department shall pay each month into the Road Fund the amount
2estimated to represent 48% of the net revenue realized from
3the taxes imposed on motor fuel and gasohol. Beginning July 1,
42024 and until July 1, 2025, subject to the payment of amounts
5into the County and Mass Transit District Fund, the Local
6Government Tax Fund, the Build Illinois Fund, the McCormick
7Place Expansion Project Fund, the Illinois Tax Increment Fund,
8the Energy Infrastructure Fund, and the Tax Compliance and
9Administration Fund as provided in this Section, the
10Department shall pay each month into the Road Fund the amount
11estimated to represent 64% of the net revenue realized from
12the taxes imposed on motor fuel and gasohol. Beginning on July
131, 2025, subject to the payment of amounts into the County and
14Mass Transit District Fund, the Local Government Tax Fund, the
15Build Illinois Fund, the McCormick Place Expansion Project
16Fund, the Illinois Tax Increment Fund, the Energy
17Infrastructure Fund, and the Tax Compliance and Administration
18Fund as provided in this Section, the Department shall pay
19each month into the Road Fund the amount estimated to
20represent 80% of the net revenue realized from the taxes
21imposed on motor fuel and gasohol. As used in this paragraph
22"motor fuel" has the meaning given to that term in Section 1.1
23of the Motor Fuel Tax Act, and "gasohol" has the meaning given
24to that term in Section 3-40 of the Use Tax Act.
25    Of the remainder of the moneys received by the Department
26pursuant to this Act, 75% thereof shall be paid into the State

 

 

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1Treasury and 25% shall be reserved in a special account and
2used only for the transfer to the Common School Fund as part of
3the monthly transfer from the General Revenue Fund in
4accordance with Section 8a of the State Finance Act.
5    The Department may, upon separate written notice to a
6taxpayer, require the taxpayer to prepare and file with the
7Department on a form prescribed by the Department within not
8less than 60 days after receipt of the notice an annual
9information return for the tax year specified in the notice.
10Such annual return to the Department shall include a statement
11of gross receipts as shown by the retailer's last Federal
12income tax return. If the total receipts of the business as
13reported in the Federal income tax return do not agree with the
14gross receipts reported to the Department of Revenue for the
15same period, the retailer shall attach to his annual return a
16schedule showing a reconciliation of the 2 amounts and the
17reasons for the difference. The retailer's annual return to
18the Department shall also disclose the cost of goods sold by
19the retailer during the year covered by such return, opening
20and closing inventories of such goods for such year, costs of
21goods used from stock or taken from stock and given away by the
22retailer during such year, payroll information of the
23retailer's business during such year and any additional
24reasonable information which the Department deems would be
25helpful in determining the accuracy of the monthly, quarterly
26or annual returns filed by such retailer as provided for in

 

 

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1this Section.
2    If the annual information return required by this Section
3is not filed when and as required, the taxpayer shall be liable
4as follows:
5        (i) Until January 1, 1994, the taxpayer shall be
6    liable for a penalty equal to 1/6 of 1% of the tax due from
7    such taxpayer under this Act during the period to be
8    covered by the annual return for each month or fraction of
9    a month until such return is filed as required, the
10    penalty to be assessed and collected in the same manner as
11    any other penalty provided for in this Act.
12        (ii) On and after January 1, 1994, the taxpayer shall
13    be liable for a penalty as described in Section 3-4 of the
14    Uniform Penalty and Interest Act.
15    The chief executive officer, proprietor, owner or highest
16ranking manager shall sign the annual return to certify the
17accuracy of the information contained therein. Any person who
18willfully signs the annual return containing false or
19inaccurate information shall be guilty of perjury and punished
20accordingly. The annual return form prescribed by the
21Department shall include a warning that the person signing the
22return may be liable for perjury.
23    The provisions of this Section concerning the filing of an
24annual information return do not apply to a retailer who is not
25required to file an income tax return with the United States
26Government.

 

 

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1    As soon as possible after the first day of each month, upon
2certification of the Department of Revenue, the Comptroller
3shall order transferred and the Treasurer shall transfer from
4the General Revenue Fund to the Motor Fuel Tax Fund an amount
5equal to 1.7% of 80% of the net revenue realized under this Act
6for the second preceding month. Beginning April 1, 2000, this
7transfer is no longer required and shall not be made.
8    Net revenue realized for a month shall be the revenue
9collected by the State pursuant to this Act, less the amount
10paid out during that month as refunds to taxpayers for
11overpayment of liability.
12    For greater simplicity of administration, manufacturers,
13importers and wholesalers whose products are sold at retail in
14Illinois by numerous retailers, and who wish to do so, may
15assume the responsibility for accounting and paying to the
16Department all tax accruing under this Act with respect to
17such sales, if the retailers who are affected do not make
18written objection to the Department to this arrangement.
19    Any person who promotes, organizes, provides retail
20selling space for concessionaires or other types of sellers at
21the Illinois State Fair, DuQuoin State Fair, county fairs,
22local fairs, art shows, flea markets and similar exhibitions
23or events, including any transient merchant as defined by
24Section 2 of the Transient Merchant Act of 1987, is required to
25file a report with the Department providing the name of the
26merchant's business, the name of the person or persons engaged

 

 

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1in merchant's business, the permanent address and Illinois
2Retailers Occupation Tax Registration Number of the merchant,
3the dates and location of the event and other reasonable
4information that the Department may require. The report must
5be filed not later than the 20th day of the month next
6following the month during which the event with retail sales
7was held. Any person who fails to file a report required by
8this Section commits a business offense and is subject to a
9fine not to exceed $250.
10    Any person engaged in the business of selling tangible
11personal property at retail as a concessionaire or other type
12of seller at the Illinois State Fair, county fairs, art shows,
13flea markets and similar exhibitions or events, or any
14transient merchants, as defined by Section 2 of the Transient
15Merchant Act of 1987, may be required to make a daily report of
16the amount of such sales to the Department and to make a daily
17payment of the full amount of tax due. The Department shall
18impose this requirement when it finds that there is a
19significant risk of loss of revenue to the State at such an
20exhibition or event. Such a finding shall be based on evidence
21that a substantial number of concessionaires or other sellers
22who are not residents of Illinois will be engaging in the
23business of selling tangible personal property at retail at
24the exhibition or event, or other evidence of a significant
25risk of loss of revenue to the State. The Department shall
26notify concessionaires and other sellers affected by the

 

 

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1imposition of this requirement. In the absence of notification
2by the Department, the concessionaires and other sellers shall
3file their returns as otherwise required in this Section.
4(Source: P.A. 101-10, Article 15, Section 15-25, eff. 6-5-19;
5101-10, Article 25, Section 25-120, eff. 6-5-19; 101-27, eff.
66-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
7101-636, eff. 6-10-20; 102-634, eff. 8-27-21; revised
812-7-21.)
 
9    Section 65-15. The State Finance Act is amended by
10changing Sections 6z-18 and 6z-20 as follows:
 
11    (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
12    Sec. 6z-18. Local Government Tax Fund. A portion of the
13money paid into the Local Government Tax Fund from sales of
14tangible personal property taxed at the 1% rate under the
15Retailers' Occupation Tax Act and the Service Occupation Tax
16Act, which occurred in municipalities, shall be distributed to
17each municipality based upon the sales which occurred in that
18municipality. The remainder shall be distributed to each
19county based upon the sales which occurred in the
20unincorporated area of that county.
21    A portion of the money paid into the Local Government Tax
22Fund from the 6.25% general use tax rate on the selling price
23of tangible personal property which is purchased outside
24Illinois at retail from a retailer and which is titled or

 

 

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1registered by any agency of this State's government shall be
2distributed to municipalities as provided in this paragraph.
3Each municipality shall receive the amount attributable to
4sales for which Illinois addresses for titling or registration
5purposes are given as being in such municipality. The
6remainder of the money paid into the Local Government Tax Fund
7from such sales shall be distributed to counties. Each county
8shall receive the amount attributable to sales for which
9Illinois addresses for titling or registration purposes are
10given as being located in the unincorporated area of such
11county.
12    A portion of the money paid into the Local Government Tax
13Fund from the 6.25% general rate (and, beginning July 1, 2000
14and through December 31, 2000, the 1.25% rate on motor fuel and
15gasohol, and beginning on August 6, 2010 through August 15,
162010, and beginning again on August 5, 2022 through August 14,
172022, the 1.25% rate on sales tax holiday items) on sales
18subject to taxation under the Retailers' Occupation Tax Act
19and the Service Occupation Tax Act, which occurred in
20municipalities, shall be distributed to each municipality,
21based upon the sales which occurred in that municipality. The
22remainder shall be distributed to each county, based upon the
23sales which occurred in the unincorporated area of such
24county.
25    For the purpose of determining allocation to the local
26government unit, a retail sale by a producer of coal or other

 

 

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1mineral mined in Illinois is a sale at retail at the place
2where the coal or other mineral mined in Illinois is extracted
3from the earth. This paragraph does not apply to coal or other
4mineral when it is delivered or shipped by the seller to the
5purchaser at a point outside Illinois so that the sale is
6exempt under the United States Constitution as a sale in
7interstate or foreign commerce.
8    Whenever the Department determines that a refund of money
9paid into the Local Government Tax Fund should be made to a
10claimant instead of issuing a credit memorandum, the
11Department shall notify the State Comptroller, who shall cause
12the order to be drawn for the amount specified, and to the
13person named, in such notification from the Department. Such
14refund shall be paid by the State Treasurer out of the Local
15Government Tax Fund.
16    As soon as possible after the first day of each month,
17beginning January 1, 2011, upon certification of the
18Department of Revenue, the Comptroller shall order
19transferred, and the Treasurer shall transfer, to the STAR
20Bonds Revenue Fund the local sales tax increment, as defined
21in the Innovation Development and Economy Act, collected
22during the second preceding calendar month for sales within a
23STAR bond district and deposited into the Local Government Tax
24Fund, less 3% of that amount, which shall be transferred into
25the Tax Compliance and Administration Fund and shall be used
26by the Department, subject to appropriation, to cover the

 

 

SB0157 Enrolled- 634 -LRB102 10128 HLH 16591 b

1costs of the Department in administering the Innovation
2Development and Economy Act.
3    After the monthly transfer to the STAR Bonds Revenue Fund,
4on or before the 25th day of each calendar month, the
5Department shall prepare and certify to the Comptroller the
6disbursement of stated sums of money to named municipalities
7and counties, the municipalities and counties to be those
8entitled to distribution of taxes or penalties paid to the
9Department during the second preceding calendar month. The
10amount to be paid to each municipality or county shall be the
11amount (not including credit memoranda) collected during the
12second preceding calendar month by the Department and paid
13into the Local Government Tax Fund, plus an amount the
14Department determines is necessary to offset any amounts which
15were erroneously paid to a different taxing body, and not
16including an amount equal to the amount of refunds made during
17the second preceding calendar month by the Department, and not
18including any amount which the Department determines is
19necessary to offset any amounts which are payable to a
20different taxing body but were erroneously paid to the
21municipality or county, and not including any amounts that are
22transferred to the STAR Bonds Revenue Fund. Within 10 days
23after receipt, by the Comptroller, of the disbursement
24certification to the municipalities and counties, provided for
25in this Section to be given to the Comptroller by the
26Department, the Comptroller shall cause the orders to be drawn

 

 

SB0157 Enrolled- 635 -LRB102 10128 HLH 16591 b

1for the respective amounts in accordance with the directions
2contained in such certification.
3    When certifying the amount of monthly disbursement to a
4municipality or county under this Section, the Department
5shall increase or decrease that amount by an amount necessary
6to offset any misallocation of previous disbursements. The
7offset amount shall be the amount erroneously disbursed within
8the 6 months preceding the time a misallocation is discovered.
9    The provisions directing the distributions from the
10special fund in the State Treasury provided for in this
11Section shall constitute an irrevocable and continuing
12appropriation of all amounts as provided herein. The State
13Treasurer and State Comptroller are hereby authorized to make
14distributions as provided in this Section.
15    In construing any development, redevelopment, annexation,
16preannexation or other lawful agreement in effect prior to
17September 1, 1990, which describes or refers to receipts from
18a county or municipal retailers' occupation tax, use tax or
19service occupation tax which now cannot be imposed, such
20description or reference shall be deemed to include the
21replacement revenue for such abolished taxes, distributed from
22the Local Government Tax Fund.
23    As soon as possible after the effective date of this
24amendatory Act of the 98th General Assembly, the State
25Comptroller shall order and the State Treasurer shall transfer
26$6,600,000 from the Local Government Tax Fund to the Illinois

 

 

SB0157 Enrolled- 636 -LRB102 10128 HLH 16591 b

1State Medical Disciplinary Fund.
2(Source: P.A. 100-1171, eff. 1-4-19.)
 
3    (30 ILCS 105/6z-20)  (from Ch. 127, par. 142z-20)
4    Sec. 6z-20. County and Mass Transit District Fund. Of the
5money received from the 6.25% general rate (and, beginning
6July 1, 2000 and through December 31, 2000, the 1.25% rate on
7motor fuel and gasohol, and beginning on August 6, 2010
8through August 15, 2010, and beginning again on August 5, 2022
9through August 14, 2022, the 1.25% rate on sales tax holiday
10items) on sales subject to taxation under the Retailers'
11Occupation Tax Act and Service Occupation Tax Act and paid
12into the County and Mass Transit District Fund, distribution
13to the Regional Transportation Authority tax fund, created
14pursuant to Section 4.03 of the Regional Transportation
15Authority Act, for deposit therein shall be made based upon
16the retail sales occurring in a county having more than
173,000,000 inhabitants. The remainder shall be distributed to
18each county having 3,000,000 or fewer inhabitants based upon
19the retail sales occurring in each such county.
20    For the purpose of determining allocation to the local
21government unit, a retail sale by a producer of coal or other
22mineral mined in Illinois is a sale at retail at the place
23where the coal or other mineral mined in Illinois is extracted
24from the earth. This paragraph does not apply to coal or other
25mineral when it is delivered or shipped by the seller to the

 

 

SB0157 Enrolled- 637 -LRB102 10128 HLH 16591 b

1purchaser at a point outside Illinois so that the sale is
2exempt under the United States Constitution as a sale in
3interstate or foreign commerce.
4    Of the money received from the 6.25% general use tax rate
5on tangible personal property which is purchased outside
6Illinois at retail from a retailer and which is titled or
7registered by any agency of this State's government and paid
8into the County and Mass Transit District Fund, the amount for
9which Illinois addresses for titling or registration purposes
10are given as being in each county having more than 3,000,000
11inhabitants shall be distributed into the Regional
12Transportation Authority tax fund, created pursuant to Section
134.03 of the Regional Transportation Authority Act. The
14remainder of the money paid from such sales shall be
15distributed to each county based on sales for which Illinois
16addresses for titling or registration purposes are given as
17being located in the county. Any money paid into the Regional
18Transportation Authority Occupation and Use Tax Replacement
19Fund from the County and Mass Transit District Fund prior to
20January 14, 1991, which has not been paid to the Authority
21prior to that date, shall be transferred to the Regional
22Transportation Authority tax fund.
23    Whenever the Department determines that a refund of money
24paid into the County and Mass Transit District Fund should be
25made to a claimant instead of issuing a credit memorandum, the
26Department shall notify the State Comptroller, who shall cause

 

 

SB0157 Enrolled- 638 -LRB102 10128 HLH 16591 b

1the order to be drawn for the amount specified, and to the
2person named, in such notification from the Department. Such
3refund shall be paid by the State Treasurer out of the County
4and Mass Transit District Fund.
5    As soon as possible after the first day of each month,
6beginning January 1, 2011, upon certification of the
7Department of Revenue, the Comptroller shall order
8transferred, and the Treasurer shall transfer, to the STAR
9Bonds Revenue Fund the local sales tax increment, as defined
10in the Innovation Development and Economy Act, collected
11during the second preceding calendar month for sales within a
12STAR bond district and deposited into the County and Mass
13Transit District Fund, less 3% of that amount, which shall be
14transferred into the Tax Compliance and Administration Fund
15and shall be used by the Department, subject to appropriation,
16to cover the costs of the Department in administering the
17Innovation Development and Economy Act.
18    After the monthly transfer to the STAR Bonds Revenue Fund,
19on or before the 25th day of each calendar month, the
20Department shall prepare and certify to the Comptroller the
21disbursement of stated sums of money to the Regional
22Transportation Authority and to named counties, the counties
23to be those entitled to distribution, as hereinabove provided,
24of taxes or penalties paid to the Department during the second
25preceding calendar month. The amount to be paid to the
26Regional Transportation Authority and each county having

 

 

SB0157 Enrolled- 639 -LRB102 10128 HLH 16591 b

13,000,000 or fewer inhabitants shall be the amount (not
2including credit memoranda) collected during the second
3preceding calendar month by the Department and paid into the
4County and Mass Transit District Fund, plus an amount the
5Department determines is necessary to offset any amounts which
6were erroneously paid to a different taxing body, and not
7including an amount equal to the amount of refunds made during
8the second preceding calendar month by the Department, and not
9including any amount which the Department determines is
10necessary to offset any amounts which were payable to a
11different taxing body but were erroneously paid to the
12Regional Transportation Authority or county, and not including
13any amounts that are transferred to the STAR Bonds Revenue
14Fund, less 1.5% of the amount to be paid to the Regional
15Transportation Authority, which shall be transferred into the
16Tax Compliance and Administration Fund. The Department, at the
17time of each monthly disbursement to the Regional
18Transportation Authority, shall prepare and certify to the
19State Comptroller the amount to be transferred into the Tax
20Compliance and Administration Fund under this Section. Within
2110 days after receipt, by the Comptroller, of the disbursement
22certification to the Regional Transportation Authority,
23counties, and the Tax Compliance and Administration Fund
24provided for in this Section to be given to the Comptroller by
25the Department, the Comptroller shall cause the orders to be
26drawn for the respective amounts in accordance with the

 

 

SB0157 Enrolled- 640 -LRB102 10128 HLH 16591 b

1directions contained in such certification.
2    When certifying the amount of a monthly disbursement to
3the Regional Transportation Authority or to a county under
4this Section, the Department shall increase or decrease that
5amount by an amount necessary to offset any misallocation of
6previous disbursements. The offset amount shall be the amount
7erroneously disbursed within the 6 months preceding the time a
8misallocation is discovered.
9    The provisions directing the distributions from the
10special fund in the State Treasury provided for in this
11Section and from the Regional Transportation Authority tax
12fund created by Section 4.03 of the Regional Transportation
13Authority Act shall constitute an irrevocable and continuing
14appropriation of all amounts as provided herein. The State
15Treasurer and State Comptroller are hereby authorized to make
16distributions as provided in this Section.
17    In construing any development, redevelopment, annexation,
18preannexation or other lawful agreement in effect prior to
19September 1, 1990, which describes or refers to receipts from
20a county or municipal retailers' occupation tax, use tax or
21service occupation tax which now cannot be imposed, such
22description or reference shall be deemed to include the
23replacement revenue for such abolished taxes, distributed from
24the County and Mass Transit District Fund or Local Government
25Distributive Fund, as the case may be.
26(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
 

 

 

SB0157 Enrolled- 641 -LRB102 10128 HLH 16591 b

1
ARTICLE 70. BREAST PUMPS

 
2    Section 70-5. The Use Tax Act is amended by changing
3Section 3-5 as follows:
 
4    (35 ILCS 105/3-5)
5    Sec. 3-5. Exemptions. Use of the following tangible
6personal property is exempt from the tax imposed by this Act:
7    (1) Personal property purchased from a corporation,
8society, association, foundation, institution, or
9organization, other than a limited liability company, that is
10organized and operated as a not-for-profit service enterprise
11for the benefit of persons 65 years of age or older if the
12personal property was not purchased by the enterprise for the
13purpose of resale by the enterprise.
14    (2) Personal property purchased by a not-for-profit
15Illinois county fair association for use in conducting,
16operating, or promoting the county fair.
17    (3) Personal property purchased by a not-for-profit arts
18or cultural organization that establishes, by proof required
19by the Department by rule, that it has received an exemption
20under Section 501(c)(3) of the Internal Revenue Code and that
21is organized and operated primarily for the presentation or
22support of arts or cultural programming, activities, or
23services. These organizations include, but are not limited to,

 

 

SB0157 Enrolled- 642 -LRB102 10128 HLH 16591 b

1music and dramatic arts organizations such as symphony
2orchestras and theatrical groups, arts and cultural service
3organizations, local arts councils, visual arts organizations,
4and media arts organizations. On and after July 1, 2001 (the
5effective date of Public Act 92-35), however, an entity
6otherwise eligible for this exemption shall not make tax-free
7purchases unless it has an active identification number issued
8by the Department.
9    (4) Personal property purchased by a governmental body, by
10a corporation, society, association, foundation, or
11institution organized and operated exclusively for charitable,
12religious, or educational purposes, or by a not-for-profit
13corporation, society, association, foundation, institution, or
14organization that has no compensated officers or employees and
15that is organized and operated primarily for the recreation of
16persons 55 years of age or older. A limited liability company
17may qualify for the exemption under this paragraph only if the
18limited liability company is organized and operated
19exclusively for educational purposes. On and after July 1,
201987, however, no entity otherwise eligible for this exemption
21shall make tax-free purchases unless it has an active
22exemption identification number issued by the Department.
23    (5) Until July 1, 2003, a passenger car that is a
24replacement vehicle to the extent that the purchase price of
25the car is subject to the Replacement Vehicle Tax.
26    (6) Until July 1, 2003 and beginning again on September 1,

 

 

SB0157 Enrolled- 643 -LRB102 10128 HLH 16591 b

12004 through August 30, 2014, graphic arts machinery and
2equipment, including repair and replacement parts, both new
3and used, and including that manufactured on special order,
4certified by the purchaser to be used primarily for graphic
5arts production, and including machinery and equipment
6purchased for lease. Equipment includes chemicals or chemicals
7acting as catalysts but only if the chemicals or chemicals
8acting as catalysts effect a direct and immediate change upon
9a graphic arts product. Beginning on July 1, 2017, graphic
10arts machinery and equipment is included in the manufacturing
11and assembling machinery and equipment exemption under
12paragraph (18).
13    (7) Farm chemicals.
14    (8) Legal tender, currency, medallions, or gold or silver
15coinage issued by the State of Illinois, the government of the
16United States of America, or the government of any foreign
17country, and bullion.
18    (9) Personal property purchased from a teacher-sponsored
19student organization affiliated with an elementary or
20secondary school located in Illinois.
21    (10) A motor vehicle that is used for automobile renting,
22as defined in the Automobile Renting Occupation and Use Tax
23Act.
24    (11) Farm machinery and equipment, both new and used,
25including that manufactured on special order, certified by the
26purchaser to be used primarily for production agriculture or

 

 

SB0157 Enrolled- 644 -LRB102 10128 HLH 16591 b

1State or federal agricultural programs, including individual
2replacement parts for the machinery and equipment, including
3machinery and equipment purchased for lease, and including
4implements of husbandry defined in Section 1-130 of the
5Illinois Vehicle Code, farm machinery and agricultural
6chemical and fertilizer spreaders, and nurse wagons required
7to be registered under Section 3-809 of the Illinois Vehicle
8Code, but excluding other motor vehicles required to be
9registered under the Illinois Vehicle Code. Horticultural
10polyhouses or hoop houses used for propagating, growing, or
11overwintering plants shall be considered farm machinery and
12equipment under this item (11). Agricultural chemical tender
13tanks and dry boxes shall include units sold separately from a
14motor vehicle required to be licensed and units sold mounted
15on a motor vehicle required to be licensed if the selling price
16of the tender is separately stated.
17    Farm machinery and equipment shall include precision
18farming equipment that is installed or purchased to be
19installed on farm machinery and equipment including, but not
20limited to, tractors, harvesters, sprayers, planters, seeders,
21or spreaders. Precision farming equipment includes, but is not
22limited to, soil testing sensors, computers, monitors,
23software, global positioning and mapping systems, and other
24such equipment.
25    Farm machinery and equipment also includes computers,
26sensors, software, and related equipment used primarily in the

 

 

SB0157 Enrolled- 645 -LRB102 10128 HLH 16591 b

1computer-assisted operation of production agriculture
2facilities, equipment, and activities such as, but not limited
3to, the collection, monitoring, and correlation of animal and
4crop data for the purpose of formulating animal diets and
5agricultural chemicals. This item (11) is exempt from the
6provisions of Section 3-90.
7    (12) Until June 30, 2013, fuel and petroleum products sold
8to or used by an air common carrier, certified by the carrier
9to be used for consumption, shipment, or storage in the
10conduct of its business as an air common carrier, for a flight
11destined for or returning from a location or locations outside
12the United States without regard to previous or subsequent
13domestic stopovers.
14    Beginning July 1, 2013, fuel and petroleum products sold
15to or used by an air carrier, certified by the carrier to be
16used for consumption, shipment, or storage in the conduct of
17its business as an air common carrier, for a flight that (i) is
18engaged in foreign trade or is engaged in trade between the
19United States and any of its possessions and (ii) transports
20at least one individual or package for hire from the city of
21origination to the city of final destination on the same
22aircraft, without regard to a change in the flight number of
23that aircraft.
24    (13) Proceeds of mandatory service charges separately
25stated on customers' bills for the purchase and consumption of
26food and beverages purchased at retail from a retailer, to the

 

 

SB0157 Enrolled- 646 -LRB102 10128 HLH 16591 b

1extent that the proceeds of the service charge are in fact
2turned over as tips or as a substitute for tips to the
3employees who participate directly in preparing, serving,
4hosting or cleaning up the food or beverage function with
5respect to which the service charge is imposed.
6    (14) Until July 1, 2003, oil field exploration, drilling,
7and production equipment, including (i) rigs and parts of
8rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
9pipe and tubular goods, including casing and drill strings,
10(iii) pumps and pump-jack units, (iv) storage tanks and flow
11lines, (v) any individual replacement part for oil field
12exploration, drilling, and production equipment, and (vi)
13machinery and equipment purchased for lease; but excluding
14motor vehicles required to be registered under the Illinois
15Vehicle Code.
16    (15) Photoprocessing machinery and equipment, including
17repair and replacement parts, both new and used, including
18that manufactured on special order, certified by the purchaser
19to be used primarily for photoprocessing, and including
20photoprocessing machinery and equipment purchased for lease.
21    (16) Until July 1, 2023, coal and aggregate exploration,
22mining, off-highway hauling, processing, maintenance, and
23reclamation equipment, including replacement parts and
24equipment, and including equipment purchased for lease, but
25excluding motor vehicles required to be registered under the
26Illinois Vehicle Code. The changes made to this Section by

 

 

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1Public Act 97-767 apply on and after July 1, 2003, but no claim
2for credit or refund is allowed on or after August 16, 2013
3(the effective date of Public Act 98-456) for such taxes paid
4during the period beginning July 1, 2003 and ending on August
516, 2013 (the effective date of Public Act 98-456).
6    (17) Until July 1, 2003, distillation machinery and
7equipment, sold as a unit or kit, assembled or installed by the
8retailer, certified by the user to be used only for the
9production of ethyl alcohol that will be used for consumption
10as motor fuel or as a component of motor fuel for the personal
11use of the user, and not subject to sale or resale.
12    (18) Manufacturing and assembling machinery and equipment
13used primarily in the process of manufacturing or assembling
14tangible personal property for wholesale or retail sale or
15lease, whether that sale or lease is made directly by the
16manufacturer or by some other person, whether the materials
17used in the process are owned by the manufacturer or some other
18person, or whether that sale or lease is made apart from or as
19an incident to the seller's engaging in the service occupation
20of producing machines, tools, dies, jigs, patterns, gauges, or
21other similar items of no commercial value on special order
22for a particular purchaser. The exemption provided by this
23paragraph (18) includes production related tangible personal
24property, as defined in Section 3-50, purchased on or after
25July 1, 2019. The exemption provided by this paragraph (18)
26does not include machinery and equipment used in (i) the

 

 

SB0157 Enrolled- 648 -LRB102 10128 HLH 16591 b

1generation of electricity for wholesale or retail sale; (ii)
2the generation or treatment of natural or artificial gas for
3wholesale or retail sale that is delivered to customers
4through pipes, pipelines, or mains; or (iii) the treatment of
5water for wholesale or retail sale that is delivered to
6customers through pipes, pipelines, or mains. The provisions
7of Public Act 98-583 are declaratory of existing law as to the
8meaning and scope of this exemption. Beginning on July 1,
92017, the exemption provided by this paragraph (18) includes,
10but is not limited to, graphic arts machinery and equipment,
11as defined in paragraph (6) of this Section.
12    (19) Personal property delivered to a purchaser or
13purchaser's donee inside Illinois when the purchase order for
14that personal property was received by a florist located
15outside Illinois who has a florist located inside Illinois
16deliver the personal property.
17    (20) Semen used for artificial insemination of livestock
18for direct agricultural production.
19    (21) Horses, or interests in horses, registered with and
20meeting the requirements of any of the Arabian Horse Club
21Registry of America, Appaloosa Horse Club, American Quarter
22Horse Association, United States Trotting Association, or
23Jockey Club, as appropriate, used for purposes of breeding or
24racing for prizes. This item (21) is exempt from the
25provisions of Section 3-90, and the exemption provided for
26under this item (21) applies for all periods beginning May 30,

 

 

SB0157 Enrolled- 649 -LRB102 10128 HLH 16591 b

11995, but no claim for credit or refund is allowed on or after
2January 1, 2008 for such taxes paid during the period
3beginning May 30, 2000 and ending on January 1, 2008.
4    (22) Computers and communications equipment utilized for
5any hospital purpose and equipment used in the diagnosis,
6analysis, or treatment of hospital patients purchased by a
7lessor who leases the equipment, under a lease of one year or
8longer executed or in effect at the time the lessor would
9otherwise be subject to the tax imposed by this Act, to a
10hospital that has been issued an active tax exemption
11identification number by the Department under Section 1g of
12the Retailers' Occupation Tax Act. If the equipment is leased
13in a manner that does not qualify for this exemption or is used
14in any other non-exempt manner, the lessor shall be liable for
15the tax imposed under this Act or the Service Use Tax Act, as
16the case may be, based on the fair market value of the property
17at the time the non-qualifying use occurs. No lessor shall
18collect or attempt to collect an amount (however designated)
19that purports to reimburse that lessor for the tax imposed by
20this Act or the Service Use Tax Act, as the case may be, if the
21tax has not been paid by the lessor. If a lessor improperly
22collects any such amount from the lessee, the lessee shall
23have a legal right to claim a refund of that amount from the
24lessor. If, however, that amount is not refunded to the lessee
25for any reason, the lessor is liable to pay that amount to the
26Department.

 

 

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1    (23) Personal property purchased by a lessor who leases
2the property, under a lease of one year or longer executed or
3in effect at the time the lessor would otherwise be subject to
4the tax imposed by this Act, to a governmental body that has
5been issued an active sales tax exemption identification
6number by the Department under Section 1g of the Retailers'
7Occupation Tax Act. If the property is leased in a manner that
8does not qualify for this exemption or used in any other
9non-exempt manner, the lessor shall be liable for the tax
10imposed under this Act or the Service Use Tax Act, as the case
11may be, based on the fair market value of the property at the
12time the non-qualifying use occurs. No lessor shall collect or
13attempt to collect an amount (however designated) that
14purports to reimburse that lessor for the tax imposed by this
15Act or the Service Use Tax Act, as the case may be, if the tax
16has not been paid by the lessor. If a lessor improperly
17collects any such amount from the lessee, the lessee shall
18have a legal right to claim a refund of that amount from the
19lessor. If, however, that amount is not refunded to the lessee
20for any reason, the lessor is liable to pay that amount to the
21Department.
22    (24) Beginning with taxable years ending on or after
23December 31, 1995 and ending with taxable years ending on or
24before December 31, 2004, personal property that is donated
25for disaster relief to be used in a State or federally declared
26disaster area in Illinois or bordering Illinois by a

 

 

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1manufacturer or retailer that is registered in this State to a
2corporation, society, association, foundation, or institution
3that has been issued a sales tax exemption identification
4number by the Department that assists victims of the disaster
5who reside within the declared disaster area.
6    (25) Beginning with taxable years ending on or after
7December 31, 1995 and ending with taxable years ending on or
8before December 31, 2004, personal property that is used in
9the performance of infrastructure repairs in this State,
10including but not limited to municipal roads and streets,
11access roads, bridges, sidewalks, waste disposal systems,
12water and sewer line extensions, water distribution and
13purification facilities, storm water drainage and retention
14facilities, and sewage treatment facilities, resulting from a
15State or federally declared disaster in Illinois or bordering
16Illinois when such repairs are initiated on facilities located
17in the declared disaster area within 6 months after the
18disaster.
19    (26) Beginning July 1, 1999, game or game birds purchased
20at a "game breeding and hunting preserve area" as that term is
21used in the Wildlife Code. This paragraph is exempt from the
22provisions of Section 3-90.
23    (27) A motor vehicle, as that term is defined in Section
241-146 of the Illinois Vehicle Code, that is donated to a
25corporation, limited liability company, society, association,
26foundation, or institution that is determined by the

 

 

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1Department to be organized and operated exclusively for
2educational purposes. For purposes of this exemption, "a
3corporation, limited liability company, society, association,
4foundation, or institution organized and operated exclusively
5for educational purposes" means all tax-supported public
6schools, private schools that offer systematic instruction in
7useful branches of learning by methods common to public
8schools and that compare favorably in their scope and
9intensity with the course of study presented in tax-supported
10schools, and vocational or technical schools or institutes
11organized and operated exclusively to provide a course of
12study of not less than 6 weeks duration and designed to prepare
13individuals to follow a trade or to pursue a manual,
14technical, mechanical, industrial, business, or commercial
15occupation.
16    (28) Beginning January 1, 2000, personal property,
17including food, purchased through fundraising events for the
18benefit of a public or private elementary or secondary school,
19a group of those schools, or one or more school districts if
20the events are sponsored by an entity recognized by the school
21district that consists primarily of volunteers and includes
22parents and teachers of the school children. This paragraph
23does not apply to fundraising events (i) for the benefit of
24private home instruction or (ii) for which the fundraising
25entity purchases the personal property sold at the events from
26another individual or entity that sold the property for the

 

 

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1purpose of resale by the fundraising entity and that profits
2from the sale to the fundraising entity. This paragraph is
3exempt from the provisions of Section 3-90.
4    (29) Beginning January 1, 2000 and through December 31,
52001, new or used automatic vending machines that prepare and
6serve hot food and beverages, including coffee, soup, and
7other items, and replacement parts for these machines.
8Beginning January 1, 2002 and through June 30, 2003, machines
9and parts for machines used in commercial, coin-operated
10amusement and vending business if a use or occupation tax is
11paid on the gross receipts derived from the use of the
12commercial, coin-operated amusement and vending machines. This
13paragraph is exempt from the provisions of Section 3-90.
14    (30) Beginning January 1, 2001 and through June 30, 2016,
15food for human consumption that is to be consumed off the
16premises where it is sold (other than alcoholic beverages,
17soft drinks, and food that has been prepared for immediate
18consumption) and prescription and nonprescription medicines,
19drugs, medical appliances, and insulin, urine testing
20materials, syringes, and needles used by diabetics, for human
21use, when purchased for use by a person receiving medical
22assistance under Article V of the Illinois Public Aid Code who
23resides in a licensed long-term care facility, as defined in
24the Nursing Home Care Act, or in a licensed facility as defined
25in the ID/DD Community Care Act, the MC/DD Act, or the
26Specialized Mental Health Rehabilitation Act of 2013.

 

 

SB0157 Enrolled- 654 -LRB102 10128 HLH 16591 b

1    (31) Beginning on August 2, 2001 (the effective date of
2Public Act 92-227), computers and communications equipment
3utilized for any hospital purpose and equipment used in the
4diagnosis, analysis, or treatment of hospital patients
5purchased by a lessor who leases the equipment, under a lease
6of one year or longer executed or in effect at the time the
7lessor would otherwise be subject to the tax imposed by this
8Act, to a hospital that has been issued an active tax exemption
9identification number by the Department under Section 1g of
10the Retailers' Occupation Tax Act. If the equipment is leased
11in a manner that does not qualify for this exemption or is used
12in any other nonexempt manner, the lessor shall be liable for
13the tax imposed under this Act or the Service Use Tax Act, as
14the case may be, based on the fair market value of the property
15at the time the nonqualifying use occurs. No lessor shall
16collect or attempt to collect an amount (however designated)
17that purports to reimburse that lessor for the tax imposed by
18this Act or the Service Use Tax Act, as the case may be, if the
19tax has not been paid by the lessor. If a lessor improperly
20collects any such amount from the lessee, the lessee shall
21have a legal right to claim a refund of that amount from the
22lessor. If, however, that amount is not refunded to the lessee
23for any reason, the lessor is liable to pay that amount to the
24Department. This paragraph is exempt from the provisions of
25Section 3-90.
26    (32) Beginning on August 2, 2001 (the effective date of

 

 

SB0157 Enrolled- 655 -LRB102 10128 HLH 16591 b

1Public Act 92-227), personal property purchased by a lessor
2who leases the property, under a lease of one year or longer
3executed or in effect at the time the lessor would otherwise be
4subject to the tax imposed by this Act, to a governmental body
5that has been issued an active sales tax exemption
6identification number by the Department under Section 1g of
7the Retailers' Occupation Tax Act. If the property is leased
8in a manner that does not qualify for this exemption or used in
9any other nonexempt manner, the lessor shall be liable for the
10tax imposed under this Act or the Service Use Tax Act, as the
11case may be, based on the fair market value of the property at
12the time the nonqualifying use occurs. No lessor shall collect
13or attempt to collect an amount (however designated) that
14purports to reimburse that lessor for the tax imposed by this
15Act or the Service Use Tax Act, as the case may be, if the tax
16has not been paid by the lessor. If a lessor improperly
17collects any such amount from the lessee, the lessee shall
18have a legal right to claim a refund of that amount from the
19lessor. If, however, that amount is not refunded to the lessee
20for any reason, the lessor is liable to pay that amount to the
21Department. This paragraph is exempt from the provisions of
22Section 3-90.
23    (33) On and after July 1, 2003 and through June 30, 2004,
24the use in this State of motor vehicles of the second division
25with a gross vehicle weight in excess of 8,000 pounds and that
26are subject to the commercial distribution fee imposed under

 

 

SB0157 Enrolled- 656 -LRB102 10128 HLH 16591 b

1Section 3-815.1 of the Illinois Vehicle Code. Beginning on
2July 1, 2004 and through June 30, 2005, the use in this State
3of motor vehicles of the second division: (i) with a gross
4vehicle weight rating in excess of 8,000 pounds; (ii) that are
5subject to the commercial distribution fee imposed under
6Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
7are primarily used for commercial purposes. Through June 30,
82005, this exemption applies to repair and replacement parts
9added after the initial purchase of such a motor vehicle if
10that motor vehicle is used in a manner that would qualify for
11the rolling stock exemption otherwise provided for in this
12Act. For purposes of this paragraph, the term "used for
13commercial purposes" means the transportation of persons or
14property in furtherance of any commercial or industrial
15enterprise, whether for-hire or not.
16    (34) Beginning January 1, 2008, tangible personal property
17used in the construction or maintenance of a community water
18supply, as defined under Section 3.145 of the Environmental
19Protection Act, that is operated by a not-for-profit
20corporation that holds a valid water supply permit issued
21under Title IV of the Environmental Protection Act. This
22paragraph is exempt from the provisions of Section 3-90.
23    (35) Beginning January 1, 2010 and continuing through
24December 31, 2024, materials, parts, equipment, components,
25and furnishings incorporated into or upon an aircraft as part
26of the modification, refurbishment, completion, replacement,

 

 

SB0157 Enrolled- 657 -LRB102 10128 HLH 16591 b

1repair, or maintenance of the aircraft. This exemption
2includes consumable supplies used in the modification,
3refurbishment, completion, replacement, repair, and
4maintenance of aircraft, but excludes any materials, parts,
5equipment, components, and consumable supplies used in the
6modification, replacement, repair, and maintenance of aircraft
7engines or power plants, whether such engines or power plants
8are installed or uninstalled upon any such aircraft.
9"Consumable supplies" include, but are not limited to,
10adhesive, tape, sandpaper, general purpose lubricants,
11cleaning solution, latex gloves, and protective films. This
12exemption applies only to the use of qualifying tangible
13personal property by persons who modify, refurbish, complete,
14repair, replace, or maintain aircraft and who (i) hold an Air
15Agency Certificate and are empowered to operate an approved
16repair station by the Federal Aviation Administration, (ii)
17have a Class IV Rating, and (iii) conduct operations in
18accordance with Part 145 of the Federal Aviation Regulations.
19The exemption does not include aircraft operated by a
20commercial air carrier providing scheduled passenger air
21service pursuant to authority issued under Part 121 or Part
22129 of the Federal Aviation Regulations. The changes made to
23this paragraph (35) by Public Act 98-534 are declarative of
24existing law. It is the intent of the General Assembly that the
25exemption under this paragraph (35) applies continuously from
26January 1, 2010 through December 31, 2024; however, no claim

 

 

SB0157 Enrolled- 658 -LRB102 10128 HLH 16591 b

1for credit or refund is allowed for taxes paid as a result of
2the disallowance of this exemption on or after January 1, 2015
3and prior to the effective date of this amendatory Act of the
4101st General Assembly.
5    (36) Tangible personal property purchased by a
6public-facilities corporation, as described in Section
711-65-10 of the Illinois Municipal Code, for purposes of
8constructing or furnishing a municipal convention hall, but
9only if the legal title to the municipal convention hall is
10transferred to the municipality without any further
11consideration by or on behalf of the municipality at the time
12of the completion of the municipal convention hall or upon the
13retirement or redemption of any bonds or other debt
14instruments issued by the public-facilities corporation in
15connection with the development of the municipal convention
16hall. This exemption includes existing public-facilities
17corporations as provided in Section 11-65-25 of the Illinois
18Municipal Code. This paragraph is exempt from the provisions
19of Section 3-90.
20    (37) Beginning January 1, 2017 and through December 31,
212026, menstrual pads, tampons, and menstrual cups.
22    (38) Merchandise that is subject to the Rental Purchase
23Agreement Occupation and Use Tax. The purchaser must certify
24that the item is purchased to be rented subject to a rental
25purchase agreement, as defined in the Rental Purchase
26Agreement Act, and provide proof of registration under the

 

 

SB0157 Enrolled- 659 -LRB102 10128 HLH 16591 b

1Rental Purchase Agreement Occupation and Use Tax Act. This
2paragraph is exempt from the provisions of Section 3-90.
3    (39) Tangible personal property purchased by a purchaser
4who is exempt from the tax imposed by this Act by operation of
5federal law. This paragraph is exempt from the provisions of
6Section 3-90.
7    (40) Qualified tangible personal property used in the
8construction or operation of a data center that has been
9granted a certificate of exemption by the Department of
10Commerce and Economic Opportunity, whether that tangible
11personal property is purchased by the owner, operator, or
12tenant of the data center or by a contractor or subcontractor
13of the owner, operator, or tenant. Data centers that would
14have qualified for a certificate of exemption prior to January
151, 2020 had Public Act 101-31 been in effect may apply for and
16obtain an exemption for subsequent purchases of computer
17equipment or enabling software purchased or leased to upgrade,
18supplement, or replace computer equipment or enabling software
19purchased or leased in the original investment that would have
20qualified.
21    The Department of Commerce and Economic Opportunity shall
22grant a certificate of exemption under this item (40) to
23qualified data centers as defined by Section 605-1025 of the
24Department of Commerce and Economic Opportunity Law of the
25Civil Administrative Code of Illinois.
26    For the purposes of this item (40):

 

 

SB0157 Enrolled- 660 -LRB102 10128 HLH 16591 b

1        "Data center" means a building or a series of
2    buildings rehabilitated or constructed to house working
3    servers in one physical location or multiple sites within
4    the State of Illinois.
5        "Qualified tangible personal property" means:
6    electrical systems and equipment; climate control and
7    chilling equipment and systems; mechanical systems and
8    equipment; monitoring and secure systems; emergency
9    generators; hardware; computers; servers; data storage
10    devices; network connectivity equipment; racks; cabinets;
11    telecommunications cabling infrastructure; raised floor
12    systems; peripheral components or systems; software;
13    mechanical, electrical, or plumbing systems; battery
14    systems; cooling systems and towers; temperature control
15    systems; other cabling; and other data center
16    infrastructure equipment and systems necessary to operate
17    qualified tangible personal property, including fixtures;
18    and component parts of any of the foregoing, including
19    installation, maintenance, repair, refurbishment, and
20    replacement of qualified tangible personal property to
21    generate, transform, transmit, distribute, or manage
22    electricity necessary to operate qualified tangible
23    personal property; and all other tangible personal
24    property that is essential to the operations of a computer
25    data center. The term "qualified tangible personal
26    property" also includes building materials physically

 

 

SB0157 Enrolled- 661 -LRB102 10128 HLH 16591 b

1    incorporated in to the qualifying data center. To document
2    the exemption allowed under this Section, the retailer
3    must obtain from the purchaser a copy of the certificate
4    of eligibility issued by the Department of Commerce and
5    Economic Opportunity.
6    This item (40) is exempt from the provisions of Section
73-90.
8    (41) Beginning July 1, 2022, breast pumps, breast pump
9collection and storage supplies, and breast pump kits. This
10item (41) is exempt from the provisions of Section 3-90. As
11used in this item (41):
12        "Breast pump" means an electrically controlled or
13    manually controlled pump device designed or marketed to be
14    used to express milk from a human breast during lactation,
15    including the pump device and any battery, AC adapter, or
16    other power supply unit that is used to power the pump
17    device and is packaged and sold with the pump device at the
18    time of sale.
19        "Breast pump collection and storage supplies" means
20    items of tangible personal property designed or marketed
21    to be used in conjunction with a breast pump to collect
22    milk expressed from a human breast and to store collected
23    milk until it is ready for consumption.
24        "Breast pump collection and storage supplies"
25    includes, but is not limited to: breast shields and breast
26    shield connectors; breast pump tubes and tubing adapters;

 

 

SB0157 Enrolled- 662 -LRB102 10128 HLH 16591 b

1    breast pump valves and membranes; backflow protectors and
2    backflow protector adaptors; bottles and bottle caps
3    specific to the operation of the breast pump; and breast
4    milk storage bags.
5        "Breast pump collection and storage supplies" does not
6    include: (1) bottles and bottle caps not specific to the
7    operation of the breast pump; (2) breast pump travel bags
8    and other similar carrying accessories, including ice
9    packs, labels, and other similar products; (3) breast pump
10    cleaning supplies; (4) nursing bras, bra pads, breast
11    shells, and other similar products; and (5) creams,
12    ointments, and other similar products that relieve
13    breastfeeding-related symptoms or conditions of the
14    breasts or nipples, unless sold as part of a breast pump
15    kit that is pre-packaged by the breast pump manufacturer
16    or distributor.
17        "Breast pump kit" means a kit that: (1) contains no
18    more than a breast pump, breast pump collection and
19    storage supplies, a rechargeable battery for operating the
20    breast pump, a breastmilk cooler, bottle stands, ice
21    packs, and a breast pump carrying case; and (2) is
22    pre-packaged as a breast pump kit by the breast pump
23    manufacturer or distributor.
24(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
25101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
266-17-21.)
 

 

 

SB0157 Enrolled- 663 -LRB102 10128 HLH 16591 b

1    Section 70-10. The Service Use Tax Act is amended by
2changing Section 3-5 as follows:
 
3    (35 ILCS 110/3-5)
4    Sec. 3-5. Exemptions. Use of the following tangible
5personal property is exempt from the tax imposed by this Act:
6    (1) Personal property purchased from a corporation,
7society, association, foundation, institution, or
8organization, other than a limited liability company, that is
9organized and operated as a not-for-profit service enterprise
10for the benefit of persons 65 years of age or older if the
11personal property was not purchased by the enterprise for the
12purpose of resale by the enterprise.
13    (2) Personal property purchased by a non-profit Illinois
14county fair association for use in conducting, operating, or
15promoting the county fair.
16    (3) Personal property purchased by a not-for-profit arts
17or cultural organization that establishes, by proof required
18by the Department by rule, that it has received an exemption
19under Section 501(c)(3) of the Internal Revenue Code and that
20is organized and operated primarily for the presentation or
21support of arts or cultural programming, activities, or
22services. These organizations include, but are not limited to,
23music and dramatic arts organizations such as symphony
24orchestras and theatrical groups, arts and cultural service

 

 

SB0157 Enrolled- 664 -LRB102 10128 HLH 16591 b

1organizations, local arts councils, visual arts organizations,
2and media arts organizations. On and after July 1, 2001 (the
3effective date of Public Act 92-35), however, an entity
4otherwise eligible for this exemption shall not make tax-free
5purchases unless it has an active identification number issued
6by the Department.
7    (4) Legal tender, currency, medallions, or gold or silver
8coinage issued by the State of Illinois, the government of the
9United States of America, or the government of any foreign
10country, and bullion.
11    (5) Until July 1, 2003 and beginning again on September 1,
122004 through August 30, 2014, graphic arts machinery and
13equipment, including repair and replacement parts, both new
14and used, and including that manufactured on special order or
15purchased for lease, certified by the purchaser to be used
16primarily for graphic arts production. Equipment includes
17chemicals or chemicals acting as catalysts but only if the
18chemicals or chemicals acting as catalysts effect a direct and
19immediate change upon a graphic arts product. Beginning on
20July 1, 2017, graphic arts machinery and equipment is included
21in the manufacturing and assembling machinery and equipment
22exemption under Section 2 of this Act.
23    (6) Personal property purchased from a teacher-sponsored
24student organization affiliated with an elementary or
25secondary school located in Illinois.
26    (7) Farm machinery and equipment, both new and used,

 

 

SB0157 Enrolled- 665 -LRB102 10128 HLH 16591 b

1including that manufactured on special order, certified by the
2purchaser to be used primarily for production agriculture or
3State or federal agricultural programs, including individual
4replacement parts for the machinery and equipment, including
5machinery and equipment purchased for lease, and including
6implements of husbandry defined in Section 1-130 of the
7Illinois Vehicle Code, farm machinery and agricultural
8chemical and fertilizer spreaders, and nurse wagons required
9to be registered under Section 3-809 of the Illinois Vehicle
10Code, but excluding other motor vehicles required to be
11registered under the Illinois Vehicle Code. Horticultural
12polyhouses or hoop houses used for propagating, growing, or
13overwintering plants shall be considered farm machinery and
14equipment under this item (7). Agricultural chemical tender
15tanks and dry boxes shall include units sold separately from a
16motor vehicle required to be licensed and units sold mounted
17on a motor vehicle required to be licensed if the selling price
18of the tender is separately stated.
19    Farm machinery and equipment shall include precision
20farming equipment that is installed or purchased to be
21installed on farm machinery and equipment including, but not
22limited to, tractors, harvesters, sprayers, planters, seeders,
23or spreaders. Precision farming equipment includes, but is not
24limited to, soil testing sensors, computers, monitors,
25software, global positioning and mapping systems, and other
26such equipment.

 

 

SB0157 Enrolled- 666 -LRB102 10128 HLH 16591 b

1    Farm machinery and equipment also includes computers,
2sensors, software, and related equipment used primarily in the
3computer-assisted operation of production agriculture
4facilities, equipment, and activities such as, but not limited
5to, the collection, monitoring, and correlation of animal and
6crop data for the purpose of formulating animal diets and
7agricultural chemicals. This item (7) is exempt from the
8provisions of Section 3-75.
9    (8) Until June 30, 2013, fuel and petroleum products sold
10to or used by an air common carrier, certified by the carrier
11to be used for consumption, shipment, or storage in the
12conduct of its business as an air common carrier, for a flight
13destined for or returning from a location or locations outside
14the United States without regard to previous or subsequent
15domestic stopovers.
16    Beginning July 1, 2013, fuel and petroleum products sold
17to or used by an air carrier, certified by the carrier to be
18used for consumption, shipment, or storage in the conduct of
19its business as an air common carrier, for a flight that (i) is
20engaged in foreign trade or is engaged in trade between the
21United States and any of its possessions and (ii) transports
22at least one individual or package for hire from the city of
23origination to the city of final destination on the same
24aircraft, without regard to a change in the flight number of
25that aircraft.
26    (9) Proceeds of mandatory service charges separately

 

 

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1stated on customers' bills for the purchase and consumption of
2food and beverages acquired as an incident to the purchase of a
3service from a serviceman, to the extent that the proceeds of
4the service charge are in fact turned over as tips or as a
5substitute for tips to the employees who participate directly
6in preparing, serving, hosting or cleaning up the food or
7beverage function with respect to which the service charge is
8imposed.
9    (10) Until July 1, 2003, oil field exploration, drilling,
10and production equipment, including (i) rigs and parts of
11rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
12pipe and tubular goods, including casing and drill strings,
13(iii) pumps and pump-jack units, (iv) storage tanks and flow
14lines, (v) any individual replacement part for oil field
15exploration, drilling, and production equipment, and (vi)
16machinery and equipment purchased for lease; but excluding
17motor vehicles required to be registered under the Illinois
18Vehicle Code.
19    (11) Proceeds from the sale of photoprocessing machinery
20and equipment, including repair and replacement parts, both
21new and used, including that manufactured on special order,
22certified by the purchaser to be used primarily for
23photoprocessing, and including photoprocessing machinery and
24equipment purchased for lease.
25    (12) Until July 1, 2023, coal and aggregate exploration,
26mining, off-highway hauling, processing, maintenance, and

 

 

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1reclamation equipment, including replacement parts and
2equipment, and including equipment purchased for lease, but
3excluding motor vehicles required to be registered under the
4Illinois Vehicle Code. The changes made to this Section by
5Public Act 97-767 apply on and after July 1, 2003, but no claim
6for credit or refund is allowed on or after August 16, 2013
7(the effective date of Public Act 98-456) for such taxes paid
8during the period beginning July 1, 2003 and ending on August
916, 2013 (the effective date of Public Act 98-456).
10    (13) Semen used for artificial insemination of livestock
11for direct agricultural production.
12    (14) Horses, or interests in horses, registered with and
13meeting the requirements of any of the Arabian Horse Club
14Registry of America, Appaloosa Horse Club, American Quarter
15Horse Association, United States Trotting Association, or
16Jockey Club, as appropriate, used for purposes of breeding or
17racing for prizes. This item (14) is exempt from the
18provisions of Section 3-75, and the exemption provided for
19under this item (14) applies for all periods beginning May 30,
201995, but no claim for credit or refund is allowed on or after
21January 1, 2008 (the effective date of Public Act 95-88) for
22such taxes paid during the period beginning May 30, 2000 and
23ending on January 1, 2008 (the effective date of Public Act
2495-88).
25    (15) Computers and communications equipment utilized for
26any hospital purpose and equipment used in the diagnosis,

 

 

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1analysis, or treatment of hospital patients purchased by a
2lessor who leases the equipment, under a lease of one year or
3longer executed or in effect at the time the lessor would
4otherwise be subject to the tax imposed by this Act, to a
5hospital that has been issued an active tax exemption
6identification number by the Department under Section 1g of
7the Retailers' Occupation Tax Act. If the equipment is leased
8in a manner that does not qualify for this exemption or is used
9in any other non-exempt manner, the lessor shall be liable for
10the tax imposed under this Act or the Use Tax Act, as the case
11may be, based on the fair market value of the property at the
12time the non-qualifying use occurs. No lessor shall collect or
13attempt to collect an amount (however designated) that
14purports to reimburse that lessor for the tax imposed by this
15Act or the Use Tax Act, as the case may be, if the tax has not
16been paid by the lessor. If a lessor improperly collects any
17such amount from the lessee, the lessee shall have a legal
18right to claim a refund of that amount from the lessor. If,
19however, that amount is not refunded to the lessee for any
20reason, the lessor is liable to pay that amount to the
21Department.
22    (16) Personal property purchased by a lessor who leases
23the property, under a lease of one year or longer executed or
24in effect at the time the lessor would otherwise be subject to
25the tax imposed by this Act, to a governmental body that has
26been issued an active tax exemption identification number by

 

 

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1the Department under Section 1g of the Retailers' Occupation
2Tax Act. If the property is leased in a manner that does not
3qualify for this exemption or is used in any other non-exempt
4manner, the lessor shall be liable for the tax imposed under
5this Act or the Use Tax Act, as the case may be, based on the
6fair market value of the property at the time the
7non-qualifying use occurs. No lessor shall collect or attempt
8to collect an amount (however designated) that purports to
9reimburse that lessor for the tax imposed by this Act or the
10Use Tax Act, as the case may be, if the tax has not been paid
11by the lessor. If a lessor improperly collects any such amount
12from the lessee, the lessee shall have a legal right to claim a
13refund of that amount from the lessor. If, however, that
14amount is not refunded to the lessee for any reason, the lessor
15is liable to pay that amount to the Department.
16    (17) Beginning with taxable years ending on or after
17December 31, 1995 and ending with taxable years ending on or
18before December 31, 2004, personal property that is donated
19for disaster relief to be used in a State or federally declared
20disaster area in Illinois or bordering Illinois by a
21manufacturer or retailer that is registered in this State to a
22corporation, society, association, foundation, or institution
23that has been issued a sales tax exemption identification
24number by the Department that assists victims of the disaster
25who reside within the declared disaster area.
26    (18) Beginning with taxable years ending on or after

 

 

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1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is used in
3the performance of infrastructure repairs in this State,
4including but not limited to municipal roads and streets,
5access roads, bridges, sidewalks, waste disposal systems,
6water and sewer line extensions, water distribution and
7purification facilities, storm water drainage and retention
8facilities, and sewage treatment facilities, resulting from a
9State or federally declared disaster in Illinois or bordering
10Illinois when such repairs are initiated on facilities located
11in the declared disaster area within 6 months after the
12disaster.
13    (19) Beginning July 1, 1999, game or game birds purchased
14at a "game breeding and hunting preserve area" as that term is
15used in the Wildlife Code. This paragraph is exempt from the
16provisions of Section 3-75.
17    (20) A motor vehicle, as that term is defined in Section
181-146 of the Illinois Vehicle Code, that is donated to a
19corporation, limited liability company, society, association,
20foundation, or institution that is determined by the
21Department to be organized and operated exclusively for
22educational purposes. For purposes of this exemption, "a
23corporation, limited liability company, society, association,
24foundation, or institution organized and operated exclusively
25for educational purposes" means all tax-supported public
26schools, private schools that offer systematic instruction in

 

 

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1useful branches of learning by methods common to public
2schools and that compare favorably in their scope and
3intensity with the course of study presented in tax-supported
4schools, and vocational or technical schools or institutes
5organized and operated exclusively to provide a course of
6study of not less than 6 weeks duration and designed to prepare
7individuals to follow a trade or to pursue a manual,
8technical, mechanical, industrial, business, or commercial
9occupation.
10    (21) Beginning January 1, 2000, personal property,
11including food, purchased through fundraising events for the
12benefit of a public or private elementary or secondary school,
13a group of those schools, or one or more school districts if
14the events are sponsored by an entity recognized by the school
15district that consists primarily of volunteers and includes
16parents and teachers of the school children. This paragraph
17does not apply to fundraising events (i) for the benefit of
18private home instruction or (ii) for which the fundraising
19entity purchases the personal property sold at the events from
20another individual or entity that sold the property for the
21purpose of resale by the fundraising entity and that profits
22from the sale to the fundraising entity. This paragraph is
23exempt from the provisions of Section 3-75.
24    (22) Beginning January 1, 2000 and through December 31,
252001, new or used automatic vending machines that prepare and
26serve hot food and beverages, including coffee, soup, and

 

 

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1other items, and replacement parts for these machines.
2Beginning January 1, 2002 and through June 30, 2003, machines
3and parts for machines used in commercial, coin-operated
4amusement and vending business if a use or occupation tax is
5paid on the gross receipts derived from the use of the
6commercial, coin-operated amusement and vending machines. This
7paragraph is exempt from the provisions of Section 3-75.
8    (23) Beginning August 23, 2001 and through June 30, 2016,
9food for human consumption that is to be consumed off the
10premises where it is sold (other than alcoholic beverages,
11soft drinks, and food that has been prepared for immediate
12consumption) and prescription and nonprescription medicines,
13drugs, medical appliances, and insulin, urine testing
14materials, syringes, and needles used by diabetics, for human
15use, when purchased for use by a person receiving medical
16assistance under Article V of the Illinois Public Aid Code who
17resides in a licensed long-term care facility, as defined in
18the Nursing Home Care Act, or in a licensed facility as defined
19in the ID/DD Community Care Act, the MC/DD Act, or the
20Specialized Mental Health Rehabilitation Act of 2013.
21    (24) Beginning on August 2, 2001 (the effective date of
22Public Act 92-227), computers and communications equipment
23utilized for any hospital purpose and equipment used in the
24diagnosis, analysis, or treatment of hospital patients
25purchased by a lessor who leases the equipment, under a lease
26of one year or longer executed or in effect at the time the

 

 

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1lessor would otherwise be subject to the tax imposed by this
2Act, to a hospital that has been issued an active tax exemption
3identification number by the Department under Section 1g of
4the Retailers' Occupation Tax Act. If the equipment is leased
5in a manner that does not qualify for this exemption or is used
6in any other nonexempt manner, the lessor shall be liable for
7the tax imposed under this Act or the Use Tax Act, as the case
8may be, based on the fair market value of the property at the
9time the nonqualifying use occurs. No lessor shall collect or
10attempt to collect an amount (however designated) that
11purports to reimburse that lessor for the tax imposed by this
12Act or the Use Tax Act, as the case may be, if the tax has not
13been paid by the lessor. If a lessor improperly collects any
14such amount from the lessee, the lessee shall have a legal
15right to claim a refund of that amount from the lessor. If,
16however, that amount is not refunded to the lessee for any
17reason, the lessor is liable to pay that amount to the
18Department. This paragraph is exempt from the provisions of
19Section 3-75.
20    (25) Beginning on August 2, 2001 (the effective date of
21Public Act 92-227), personal property purchased by a lessor
22who leases the property, under a lease of one year or longer
23executed or in effect at the time the lessor would otherwise be
24subject to the tax imposed by this Act, to a governmental body
25that has been issued an active tax exemption identification
26number by the Department under Section 1g of the Retailers'

 

 

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1Occupation Tax Act. If the property is leased in a manner that
2does not qualify for this exemption or is used in any other
3nonexempt manner, the lessor shall be liable for the tax
4imposed under this Act or the Use Tax Act, as the case may be,
5based on the fair market value of the property at the time the
6nonqualifying use occurs. No lessor shall collect or attempt
7to collect an amount (however designated) that purports to
8reimburse that lessor for the tax imposed by this Act or the
9Use Tax Act, as the case may be, if the tax has not been paid
10by the lessor. If a lessor improperly collects any such amount
11from the lessee, the lessee shall have a legal right to claim a
12refund of that amount from the lessor. If, however, that
13amount is not refunded to the lessee for any reason, the lessor
14is liable to pay that amount to the Department. This paragraph
15is exempt from the provisions of Section 3-75.
16    (26) Beginning January 1, 2008, tangible personal property
17used in the construction or maintenance of a community water
18supply, as defined under Section 3.145 of the Environmental
19Protection Act, that is operated by a not-for-profit
20corporation that holds a valid water supply permit issued
21under Title IV of the Environmental Protection Act. This
22paragraph is exempt from the provisions of Section 3-75.
23    (27) Beginning January 1, 2010 and continuing through
24December 31, 2024, materials, parts, equipment, components,
25and furnishings incorporated into or upon an aircraft as part
26of the modification, refurbishment, completion, replacement,

 

 

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1repair, or maintenance of the aircraft. This exemption
2includes consumable supplies used in the modification,
3refurbishment, completion, replacement, repair, and
4maintenance of aircraft, but excludes any materials, parts,
5equipment, components, and consumable supplies used in the
6modification, replacement, repair, and maintenance of aircraft
7engines or power plants, whether such engines or power plants
8are installed or uninstalled upon any such aircraft.
9"Consumable supplies" include, but are not limited to,
10adhesive, tape, sandpaper, general purpose lubricants,
11cleaning solution, latex gloves, and protective films. This
12exemption applies only to the use of qualifying tangible
13personal property transferred incident to the modification,
14refurbishment, completion, replacement, repair, or maintenance
15of aircraft by persons who (i) hold an Air Agency Certificate
16and are empowered to operate an approved repair station by the
17Federal Aviation Administration, (ii) have a Class IV Rating,
18and (iii) conduct operations in accordance with Part 145 of
19the Federal Aviation Regulations. The exemption does not
20include aircraft operated by a commercial air carrier
21providing scheduled passenger air service pursuant to
22authority issued under Part 121 or Part 129 of the Federal
23Aviation Regulations. The changes made to this paragraph (27)
24by Public Act 98-534 are declarative of existing law. It is the
25intent of the General Assembly that the exemption under this
26paragraph (27) applies continuously from January 1, 2010

 

 

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1through December 31, 2024; however, no claim for credit or
2refund is allowed for taxes paid as a result of the
3disallowance of this exemption on or after January 1, 2015 and
4prior to the effective date of this amendatory Act of the 101st
5General Assembly.
6    (28) Tangible personal property purchased by a
7public-facilities corporation, as described in Section
811-65-10 of the Illinois Municipal Code, for purposes of
9constructing or furnishing a municipal convention hall, but
10only if the legal title to the municipal convention hall is
11transferred to the municipality without any further
12consideration by or on behalf of the municipality at the time
13of the completion of the municipal convention hall or upon the
14retirement or redemption of any bonds or other debt
15instruments issued by the public-facilities corporation in
16connection with the development of the municipal convention
17hall. This exemption includes existing public-facilities
18corporations as provided in Section 11-65-25 of the Illinois
19Municipal Code. This paragraph is exempt from the provisions
20of Section 3-75.
21    (29) Beginning January 1, 2017 and through December 31,
222026, menstrual pads, tampons, and menstrual cups.
23    (30) Tangible personal property transferred to a purchaser
24who is exempt from the tax imposed by this Act by operation of
25federal law. This paragraph is exempt from the provisions of
26Section 3-75.

 

 

SB0157 Enrolled- 678 -LRB102 10128 HLH 16591 b

1    (31) Qualified tangible personal property used in the
2construction or operation of a data center that has been
3granted a certificate of exemption by the Department of
4Commerce and Economic Opportunity, whether that tangible
5personal property is purchased by the owner, operator, or
6tenant of the data center or by a contractor or subcontractor
7of the owner, operator, or tenant. Data centers that would
8have qualified for a certificate of exemption prior to January
91, 2020 had this amendatory Act of the 101st General Assembly
10been in effect, may apply for and obtain an exemption for
11subsequent purchases of computer equipment or enabling
12software purchased or leased to upgrade, supplement, or
13replace computer equipment or enabling software purchased or
14leased in the original investment that would have qualified.
15    The Department of Commerce and Economic Opportunity shall
16grant a certificate of exemption under this item (31) to
17qualified data centers as defined by Section 605-1025 of the
18Department of Commerce and Economic Opportunity Law of the
19Civil Administrative Code of Illinois.
20    For the purposes of this item (31):
21        "Data center" means a building or a series of
22    buildings rehabilitated or constructed to house working
23    servers in one physical location or multiple sites within
24    the State of Illinois.
25        "Qualified tangible personal property" means:
26    electrical systems and equipment; climate control and

 

 

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1    chilling equipment and systems; mechanical systems and
2    equipment; monitoring and secure systems; emergency
3    generators; hardware; computers; servers; data storage
4    devices; network connectivity equipment; racks; cabinets;
5    telecommunications cabling infrastructure; raised floor
6    systems; peripheral components or systems; software;
7    mechanical, electrical, or plumbing systems; battery
8    systems; cooling systems and towers; temperature control
9    systems; other cabling; and other data center
10    infrastructure equipment and systems necessary to operate
11    qualified tangible personal property, including fixtures;
12    and component parts of any of the foregoing, including
13    installation, maintenance, repair, refurbishment, and
14    replacement of qualified tangible personal property to
15    generate, transform, transmit, distribute, or manage
16    electricity necessary to operate qualified tangible
17    personal property; and all other tangible personal
18    property that is essential to the operations of a computer
19    data center. The term "qualified tangible personal
20    property" also includes building materials physically
21    incorporated in to the qualifying data center. To document
22    the exemption allowed under this Section, the retailer
23    must obtain from the purchaser a copy of the certificate
24    of eligibility issued by the Department of Commerce and
25    Economic Opportunity.
26    This item (31) is exempt from the provisions of Section

 

 

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13-75.
2    (32) Beginning July 1, 2022, breast pumps, breast pump
3collection and storage supplies, and breast pump kits. This
4item (32) is exempt from the provisions of Section 3-75. As
5used in this item (32):
6        "Breast pump" means an electrically controlled or
7    manually controlled pump device designed or marketed to be
8    used to express milk from a human breast during lactation,
9    including the pump device and any battery, AC adapter, or
10    other power supply unit that is used to power the pump
11    device and is packaged and sold with the pump device at the
12    time of sale.
13        "Breast pump collection and storage supplies" means
14    items of tangible personal property designed or marketed
15    to be used in conjunction with a breast pump to collect
16    milk expressed from a human breast and to store collected
17    milk until it is ready for consumption.
18        "Breast pump collection and storage supplies"
19    includes, but is not limited to: breast shields and breast
20    shield connectors; breast pump tubes and tubing adapters;
21    breast pump valves and membranes; backflow protectors and
22    backflow protector adaptors; bottles and bottle caps
23    specific to the operation of the breast pump; and breast
24    milk storage bags.
25        "Breast pump collection and storage supplies" does not
26    include: (1) bottles and bottle caps not specific to the

 

 

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1    operation of the breast pump; (2) breast pump travel bags
2    and other similar carrying accessories, including ice
3    packs, labels, and other similar products; (3) breast pump
4    cleaning supplies; (4) nursing bras, bra pads, breast
5    shells, and other similar products; and (5) creams,
6    ointments, and other similar products that relieve
7    breastfeeding-related symptoms or conditions of the
8    breasts or nipples, unless sold as part of a breast pump
9    kit that is pre-packaged by the breast pump manufacturer
10    or distributor.
11        "Breast pump kit" means a kit that: (1) contains no
12    more than a breast pump, breast pump collection and
13    storage supplies, a rechargeable battery for operating the
14    breast pump, a breastmilk cooler, bottle stands, ice
15    packs, and a breast pump carrying case; and (2) is
16    pre-packaged as a breast pump kit by the breast pump
17    manufacturer or distributor.
18(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
19101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
 
20    Section 70-15. The Service Occupation Tax Act is amended
21by changing Section 3-5 as follows:
 
22    (35 ILCS 115/3-5)
23    Sec. 3-5. Exemptions. The following tangible personal
24property is exempt from the tax imposed by this Act:

 

 

SB0157 Enrolled- 682 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 683 -LRB102 10128 HLH 16591 b

1coinage issued by the State of Illinois, the government of the
2United States of America, or the government of any foreign
3country, and bullion.
4    (5) Until July 1, 2003 and beginning again on September 1,
52004 through August 30, 2014, graphic arts machinery and
6equipment, including repair and replacement parts, both new
7and used, and including that manufactured on special order or
8purchased for lease, certified by the purchaser to be used
9primarily for graphic arts production. Equipment includes
10chemicals or chemicals acting as catalysts but only if the
11chemicals or chemicals acting as catalysts effect a direct and
12immediate change upon a graphic arts product. Beginning on
13July 1, 2017, graphic arts machinery and equipment is included
14in the manufacturing and assembling machinery and equipment
15exemption under Section 2 of this Act.
16    (6) Personal property sold by a teacher-sponsored student
17organization affiliated with an elementary or secondary school
18located in Illinois.
19    (7) Farm machinery and equipment, both new and used,
20including that manufactured on special order, certified by the
21purchaser to be used primarily for production agriculture or
22State or federal agricultural programs, including individual
23replacement parts for the machinery and equipment, including
24machinery and equipment purchased for lease, and including
25implements of husbandry defined in Section 1-130 of the
26Illinois Vehicle Code, farm machinery and agricultural

 

 

SB0157 Enrolled- 684 -LRB102 10128 HLH 16591 b

1chemical and fertilizer spreaders, and nurse wagons required
2to be registered under Section 3-809 of the Illinois Vehicle
3Code, but excluding other motor vehicles required to be
4registered under the Illinois Vehicle Code. Horticultural
5polyhouses or hoop houses used for propagating, growing, or
6overwintering plants shall be considered farm machinery and
7equipment under this item (7). Agricultural chemical tender
8tanks and dry boxes shall include units sold separately from a
9motor vehicle required to be licensed and units sold mounted
10on a motor vehicle required to be licensed if the selling price
11of the tender is separately stated.
12    Farm machinery and equipment shall include precision
13farming equipment that is installed or purchased to be
14installed on farm machinery and equipment including, but not
15limited to, tractors, harvesters, sprayers, planters, seeders,
16or spreaders. Precision farming equipment includes, but is not
17limited to, soil testing sensors, computers, monitors,
18software, global positioning and mapping systems, and other
19such equipment.
20    Farm machinery and equipment also includes computers,
21sensors, software, and related equipment used primarily in the
22computer-assisted operation of production agriculture
23facilities, equipment, and activities such as, but not limited
24to, the collection, monitoring, and correlation of animal and
25crop data for the purpose of formulating animal diets and
26agricultural chemicals. This item (7) is exempt from the

 

 

SB0157 Enrolled- 685 -LRB102 10128 HLH 16591 b

1provisions of Section 3-55.
2    (8) Until June 30, 2013, fuel and petroleum products sold
3to or used by an air common carrier, certified by the carrier
4to be used for consumption, shipment, or storage in the
5conduct of its business as an air common carrier, for a flight
6destined for or returning from a location or locations outside
7the United States without regard to previous or subsequent
8domestic stopovers.
9    Beginning July 1, 2013, fuel and petroleum products sold
10to or used by an air carrier, certified by the carrier to be
11used for consumption, shipment, or storage in the conduct of
12its business as an air common carrier, for a flight that (i) is
13engaged in foreign trade or is engaged in trade between the
14United States and any of its possessions and (ii) transports
15at least one individual or package for hire from the city of
16origination to the city of final destination on the same
17aircraft, without regard to a change in the flight number of
18that aircraft.
19    (9) Proceeds of mandatory service charges separately
20stated on customers' bills for the purchase and consumption of
21food and beverages, to the extent that the proceeds of the
22service charge are in fact turned over as tips or as a
23substitute for tips to the employees who participate directly
24in preparing, serving, hosting or cleaning up the food or
25beverage function with respect to which the service charge is
26imposed.

 

 

SB0157 Enrolled- 686 -LRB102 10128 HLH 16591 b

1    (10) Until July 1, 2003, oil field exploration, drilling,
2and production equipment, including (i) rigs and parts of
3rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
4pipe and tubular goods, including casing and drill strings,
5(iii) pumps and pump-jack units, (iv) storage tanks and flow
6lines, (v) any individual replacement part for oil field
7exploration, drilling, and production equipment, and (vi)
8machinery and equipment purchased for lease; but excluding
9motor vehicles required to be registered under the Illinois
10Vehicle Code.
11    (11) Photoprocessing machinery and equipment, including
12repair and replacement parts, both new and used, including
13that manufactured on special order, certified by the purchaser
14to be used primarily for photoprocessing, and including
15photoprocessing machinery and equipment purchased for lease.
16    (12) Until July 1, 2023, coal and aggregate exploration,
17mining, off-highway hauling, processing, maintenance, and
18reclamation equipment, including replacement parts and
19equipment, and including equipment purchased for lease, but
20excluding motor vehicles required to be registered under the
21Illinois Vehicle Code. The changes made to this Section by
22Public Act 97-767 apply on and after July 1, 2003, but no claim
23for credit or refund is allowed on or after August 16, 2013
24(the effective date of Public Act 98-456) for such taxes paid
25during the period beginning July 1, 2003 and ending on August
2616, 2013 (the effective date of Public Act 98-456).

 

 

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1    (13) Beginning January 1, 1992 and through June 30, 2016,
2food for human consumption that is to be consumed off the
3premises where it is sold (other than alcoholic beverages,
4soft drinks and food that has been prepared for immediate
5consumption) and prescription and non-prescription medicines,
6drugs, medical appliances, and insulin, urine testing
7materials, syringes, and needles used by diabetics, for human
8use, when purchased for use by a person receiving medical
9assistance under Article V of the Illinois Public Aid Code who
10resides in a licensed long-term care facility, as defined in
11the Nursing Home Care Act, or in a licensed facility as defined
12in the ID/DD Community Care Act, the MC/DD Act, or the
13Specialized Mental Health Rehabilitation Act of 2013.
14    (14) Semen used for artificial insemination of livestock
15for direct agricultural production.
16    (15) Horses, or interests in horses, registered with and
17meeting the requirements of any of the Arabian Horse Club
18Registry of America, Appaloosa Horse Club, American Quarter
19Horse Association, United States Trotting Association, or
20Jockey Club, as appropriate, used for purposes of breeding or
21racing for prizes. This item (15) is exempt from the
22provisions of Section 3-55, and the exemption provided for
23under this item (15) applies for all periods beginning May 30,
241995, but no claim for credit or refund is allowed on or after
25January 1, 2008 (the effective date of Public Act 95-88) for
26such taxes paid during the period beginning May 30, 2000 and

 

 

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1ending on January 1, 2008 (the effective date of Public Act
295-88).
3    (16) Computers and communications equipment utilized for
4any hospital purpose and equipment used in the diagnosis,
5analysis, or treatment of hospital patients sold to a lessor
6who leases the equipment, under a lease of one year or longer
7executed or in effect at the time of the purchase, to a
8hospital that has been issued an active tax exemption
9identification number by the Department under Section 1g of
10the Retailers' Occupation Tax Act.
11    (17) Personal property sold to a lessor who leases the
12property, under a lease of one year or longer executed or in
13effect at the time of the purchase, to a governmental body that
14has been issued an active tax exemption identification number
15by the Department under Section 1g of the Retailers'
16Occupation Tax Act.
17    (18) Beginning with taxable years ending on or after
18December 31, 1995 and ending with taxable years ending on or
19before December 31, 2004, personal property that is donated
20for disaster relief to be used in a State or federally declared
21disaster area in Illinois or bordering Illinois by a
22manufacturer or retailer that is registered in this State to a
23corporation, society, association, foundation, or institution
24that has been issued a sales tax exemption identification
25number by the Department that assists victims of the disaster
26who reside within the declared disaster area.

 

 

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1    (19) Beginning with taxable years ending on or after
2December 31, 1995 and ending with taxable years ending on or
3before December 31, 2004, personal property that is used in
4the performance of infrastructure repairs in this State,
5including but not limited to municipal roads and streets,
6access roads, bridges, sidewalks, waste disposal systems,
7water and sewer line extensions, water distribution and
8purification facilities, storm water drainage and retention
9facilities, and sewage treatment facilities, resulting from a
10State or federally declared disaster in Illinois or bordering
11Illinois when such repairs are initiated on facilities located
12in the declared disaster area within 6 months after the
13disaster.
14    (20) Beginning July 1, 1999, game or game birds sold at a
15"game breeding and hunting preserve area" as that term is used
16in the Wildlife Code. This paragraph is exempt from the
17provisions of Section 3-55.
18    (21) A motor vehicle, as that term is defined in Section
191-146 of the Illinois Vehicle Code, that is donated to a
20corporation, limited liability company, society, association,
21foundation, or institution that is determined by the
22Department to be organized and operated exclusively for
23educational purposes. For purposes of this exemption, "a
24corporation, limited liability company, society, association,
25foundation, or institution organized and operated exclusively
26for educational purposes" means all tax-supported public

 

 

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1schools, private schools that offer systematic instruction in
2useful branches of learning by methods common to public
3schools and that compare favorably in their scope and
4intensity with the course of study presented in tax-supported
5schools, and vocational or technical schools or institutes
6organized and operated exclusively to provide a course of
7study of not less than 6 weeks duration and designed to prepare
8individuals to follow a trade or to pursue a manual,
9technical, mechanical, industrial, business, or commercial
10occupation.
11    (22) Beginning January 1, 2000, personal property,
12including food, purchased through fundraising events for the
13benefit of a public or private elementary or secondary school,
14a group of those schools, or one or more school districts if
15the events are sponsored by an entity recognized by the school
16district that consists primarily of volunteers and includes
17parents and teachers of the school children. This paragraph
18does not apply to fundraising events (i) for the benefit of
19private home instruction or (ii) for which the fundraising
20entity purchases the personal property sold at the events from
21another individual or entity that sold the property for the
22purpose of resale by the fundraising entity and that profits
23from the sale to the fundraising entity. This paragraph is
24exempt from the provisions of Section 3-55.
25    (23) Beginning January 1, 2000 and through December 31,
262001, new or used automatic vending machines that prepare and

 

 

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1serve hot food and beverages, including coffee, soup, and
2other items, and replacement parts for these machines.
3Beginning January 1, 2002 and through June 30, 2003, machines
4and parts for machines used in commercial, coin-operated
5amusement and vending business if a use or occupation tax is
6paid on the gross receipts derived from the use of the
7commercial, coin-operated amusement and vending machines. This
8paragraph is exempt from the provisions of Section 3-55.
9    (24) Beginning on August 2, 2001 (the effective date of
10Public Act 92-227), computers and communications equipment
11utilized for any hospital purpose and equipment used in the
12diagnosis, analysis, or treatment of hospital patients sold to
13a lessor who leases the equipment, under a lease of one year or
14longer executed or in effect at the time of the purchase, to a
15hospital that has been issued an active tax exemption
16identification number by the Department under Section 1g of
17the Retailers' Occupation Tax Act. This paragraph is exempt
18from the provisions of Section 3-55.
19    (25) Beginning on August 2, 2001 (the effective date of
20Public Act 92-227), personal property sold to a lessor who
21leases the property, under a lease of one year or longer
22executed or in effect at the time of the purchase, to a
23governmental body that has been issued an active tax exemption
24identification number by the Department under Section 1g of
25the Retailers' Occupation Tax Act. This paragraph is exempt
26from the provisions of Section 3-55.

 

 

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1    (26) Beginning on January 1, 2002 and through June 30,
22016, tangible personal property purchased from an Illinois
3retailer by a taxpayer engaged in centralized purchasing
4activities in Illinois who will, upon receipt of the property
5in Illinois, temporarily store the property in Illinois (i)
6for the purpose of subsequently transporting it outside this
7State for use or consumption thereafter solely outside this
8State or (ii) for the purpose of being processed, fabricated,
9or manufactured into, attached to, or incorporated into other
10tangible personal property to be transported outside this
11State and thereafter used or consumed solely outside this
12State. The Director of Revenue shall, pursuant to rules
13adopted in accordance with the Illinois Administrative
14Procedure Act, issue a permit to any taxpayer in good standing
15with the Department who is eligible for the exemption under
16this paragraph (26). The permit issued under this paragraph
17(26) shall authorize the holder, to the extent and in the
18manner specified in the rules adopted under this Act, to
19purchase tangible personal property from a retailer exempt
20from the taxes imposed by this Act. Taxpayers shall maintain
21all necessary books and records to substantiate the use and
22consumption of all such tangible personal property outside of
23the State of Illinois.
24    (27) Beginning January 1, 2008, tangible personal property
25used in the construction or maintenance of a community water
26supply, as defined under Section 3.145 of the Environmental

 

 

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1Protection Act, that is operated by a not-for-profit
2corporation that holds a valid water supply permit issued
3under Title IV of the Environmental Protection Act. This
4paragraph is exempt from the provisions of Section 3-55.
5    (28) Tangible personal property sold to a
6public-facilities corporation, as described in Section
711-65-10 of the Illinois Municipal Code, for purposes of
8constructing or furnishing a municipal convention hall, but
9only if the legal title to the municipal convention hall is
10transferred to the municipality without any further
11consideration by or on behalf of the municipality at the time
12of the completion of the municipal convention hall or upon the
13retirement or redemption of any bonds or other debt
14instruments issued by the public-facilities corporation in
15connection with the development of the municipal convention
16hall. This exemption includes existing public-facilities
17corporations as provided in Section 11-65-25 of the Illinois
18Municipal Code. This paragraph is exempt from the provisions
19of Section 3-55.
20    (29) Beginning January 1, 2010 and continuing through
21December 31, 2024, materials, parts, equipment, components,
22and furnishings incorporated into or upon an aircraft as part
23of the modification, refurbishment, completion, replacement,
24repair, or maintenance of the aircraft. This exemption
25includes consumable supplies used in the modification,
26refurbishment, completion, replacement, repair, and

 

 

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1maintenance of aircraft, but excludes any materials, parts,
2equipment, components, and consumable supplies used in the
3modification, replacement, repair, and maintenance of aircraft
4engines or power plants, whether such engines or power plants
5are installed or uninstalled upon any such aircraft.
6"Consumable supplies" include, but are not limited to,
7adhesive, tape, sandpaper, general purpose lubricants,
8cleaning solution, latex gloves, and protective films. This
9exemption applies only to the transfer of qualifying tangible
10personal property incident to the modification, refurbishment,
11completion, replacement, repair, or maintenance of an aircraft
12by persons who (i) hold an Air Agency Certificate and are
13empowered to operate an approved repair station by the Federal
14Aviation Administration, (ii) have a Class IV Rating, and
15(iii) conduct operations in accordance with Part 145 of the
16Federal Aviation Regulations. The exemption does not include
17aircraft operated by a commercial air carrier providing
18scheduled passenger air service pursuant to authority issued
19under Part 121 or Part 129 of the Federal Aviation
20Regulations. The changes made to this paragraph (29) by Public
21Act 98-534 are declarative of existing law. It is the intent of
22the General Assembly that the exemption under this paragraph
23(29) applies continuously from January 1, 2010 through
24December 31, 2024; however, no claim for credit or refund is
25allowed for taxes paid as a result of the disallowance of this
26exemption on or after January 1, 2015 and prior to the

 

 

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1effective date of this amendatory Act of the 101st General
2Assembly.
3    (30) Beginning January 1, 2017 and through December 31,
42026, menstrual pads, tampons, and menstrual cups.
5    (31) Tangible personal property transferred to a purchaser
6who is exempt from tax by operation of federal law. This
7paragraph is exempt from the provisions of Section 3-55.
8    (32) Qualified tangible personal property used in the
9construction or operation of a data center that has been
10granted a certificate of exemption by the Department of
11Commerce and Economic Opportunity, whether that tangible
12personal property is purchased by the owner, operator, or
13tenant of the data center or by a contractor or subcontractor
14of the owner, operator, or tenant. Data centers that would
15have qualified for a certificate of exemption prior to January
161, 2020 had this amendatory Act of the 101st General Assembly
17been in effect, may apply for and obtain an exemption for
18subsequent purchases of computer equipment or enabling
19software purchased or leased to upgrade, supplement, or
20replace computer equipment or enabling software purchased or
21leased in the original investment that would have qualified.
22    The Department of Commerce and Economic Opportunity shall
23grant a certificate of exemption under this item (32) to
24qualified data centers as defined by Section 605-1025 of the
25Department of Commerce and Economic Opportunity Law of the
26Civil Administrative Code of Illinois.

 

 

SB0157 Enrolled- 696 -LRB102 10128 HLH 16591 b

1    For the purposes of this item (32):
2        "Data center" means a building or a series of
3    buildings rehabilitated or constructed to house working
4    servers in one physical location or multiple sites within
5    the State of Illinois.
6        "Qualified tangible personal property" means:
7    electrical systems and equipment; climate control and
8    chilling equipment and systems; mechanical systems and
9    equipment; monitoring and secure systems; emergency
10    generators; hardware; computers; servers; data storage
11    devices; network connectivity equipment; racks; cabinets;
12    telecommunications cabling infrastructure; raised floor
13    systems; peripheral components or systems; software;
14    mechanical, electrical, or plumbing systems; battery
15    systems; cooling systems and towers; temperature control
16    systems; other cabling; and other data center
17    infrastructure equipment and systems necessary to operate
18    qualified tangible personal property, including fixtures;
19    and component parts of any of the foregoing, including
20    installation, maintenance, repair, refurbishment, and
21    replacement of qualified tangible personal property to
22    generate, transform, transmit, distribute, or manage
23    electricity necessary to operate qualified tangible
24    personal property; and all other tangible personal
25    property that is essential to the operations of a computer
26    data center. The term "qualified tangible personal

 

 

SB0157 Enrolled- 697 -LRB102 10128 HLH 16591 b

1    property" also includes building materials physically
2    incorporated in to the qualifying data center. To document
3    the exemption allowed under this Section, the retailer
4    must obtain from the purchaser a copy of the certificate
5    of eligibility issued by the Department of Commerce and
6    Economic Opportunity.
7    This item (32) is exempt from the provisions of Section
83-55.
9    (33) Beginning July 1, 2022, breast pumps, breast pump
10collection and storage supplies, and breast pump kits. This
11item (33) is exempt from the provisions of Section 3-55. As
12used in this item (33):
13        "Breast pump" means an electrically controlled or
14    manually controlled pump device designed or marketed to be
15    used to express milk from a human breast during lactation,
16    including the pump device and any battery, AC adapter, or
17    other power supply unit that is used to power the pump
18    device and is packaged and sold with the pump device at the
19    time of sale.
20        "Breast pump collection and storage supplies" means
21    items of tangible personal property designed or marketed
22    to be used in conjunction with a breast pump to collect
23    milk expressed from a human breast and to store collected
24    milk until it is ready for consumption.
25        "Breast pump collection and storage supplies"
26    includes, but is not limited to: breast shields and breast

 

 

SB0157 Enrolled- 698 -LRB102 10128 HLH 16591 b

1    shield connectors; breast pump tubes and tubing adapters;
2    breast pump valves and membranes; backflow protectors and
3    backflow protector adaptors; bottles and bottle caps
4    specific to the operation of the breast pump; and breast
5    milk storage bags.
6        "Breast pump collection and storage supplies" does not
7    include: (1) bottles and bottle caps not specific to the
8    operation of the breast pump; (2) breast pump travel bags
9    and other similar carrying accessories, including ice
10    packs, labels, and other similar products; (3) breast pump
11    cleaning supplies; (4) nursing bras, bra pads, breast
12    shells, and other similar products; and (5) creams,
13    ointments, and other similar products that relieve
14    breastfeeding-related symptoms or conditions of the
15    breasts or nipples, unless sold as part of a breast pump
16    kit that is pre-packaged by the breast pump manufacturer
17    or distributor.
18        "Breast pump kit" means a kit that: (1) contains no
19    more than a breast pump, breast pump collection and
20    storage supplies, a rechargeable battery for operating the
21    breast pump, a breastmilk cooler, bottle stands, ice
22    packs, and a breast pump carrying case; and (2) is
23    pre-packaged as a breast pump kit by the breast pump
24    manufacturer or distributor.
25(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
26101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
 

 

 

SB0157 Enrolled- 699 -LRB102 10128 HLH 16591 b

1    Section 70-20. The Retailers' Occupation Tax Act is
2amended by changing Section 2-5 as follows:
 
3    (35 ILCS 120/2-5)
4    Sec. 2-5. Exemptions. Gross receipts from proceeds from
5the sale of the following tangible personal property are
6exempt from the tax imposed by this Act:
7        (1) Farm chemicals.
8        (2) Farm machinery and equipment, both new and used,
9    including that manufactured on special order, certified by
10    the purchaser to be used primarily for production
11    agriculture or State or federal agricultural programs,
12    including individual replacement parts for the machinery
13    and equipment, including machinery and equipment purchased
14    for lease, and including implements of husbandry defined
15    in Section 1-130 of the Illinois Vehicle Code, farm
16    machinery and agricultural chemical and fertilizer
17    spreaders, and nurse wagons required to be registered
18    under Section 3-809 of the Illinois Vehicle Code, but
19    excluding other motor vehicles required to be registered
20    under the Illinois Vehicle Code. Horticultural polyhouses
21    or hoop houses used for propagating, growing, or
22    overwintering plants shall be considered farm machinery
23    and equipment under this item (2). Agricultural chemical
24    tender tanks and dry boxes shall include units sold

 

 

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1    separately from a motor vehicle required to be licensed
2    and units sold mounted on a motor vehicle required to be
3    licensed, if the selling price of the tender is separately
4    stated.
5        Farm machinery and equipment shall include precision
6    farming equipment that is installed or purchased to be
7    installed on farm machinery and equipment including, but
8    not limited to, tractors, harvesters, sprayers, planters,
9    seeders, or spreaders. Precision farming equipment
10    includes, but is not limited to, soil testing sensors,
11    computers, monitors, software, global positioning and
12    mapping systems, and other such equipment.
13        Farm machinery and equipment also includes computers,
14    sensors, software, and related equipment used primarily in
15    the computer-assisted operation of production agriculture
16    facilities, equipment, and activities such as, but not
17    limited to, the collection, monitoring, and correlation of
18    animal and crop data for the purpose of formulating animal
19    diets and agricultural chemicals. This item (2) is exempt
20    from the provisions of Section 2-70.
21        (3) Until July 1, 2003, distillation machinery and
22    equipment, sold as a unit or kit, assembled or installed
23    by the retailer, certified by the user to be used only for
24    the production of ethyl alcohol that will be used for
25    consumption as motor fuel or as a component of motor fuel
26    for the personal use of the user, and not subject to sale

 

 

SB0157 Enrolled- 701 -LRB102 10128 HLH 16591 b

1    or resale.
2        (4) Until July 1, 2003 and beginning again September
3    1, 2004 through August 30, 2014, graphic arts machinery
4    and equipment, including repair and replacement parts,
5    both new and used, and including that manufactured on
6    special order or purchased for lease, certified by the
7    purchaser to be used primarily for graphic arts
8    production. Equipment includes chemicals or chemicals
9    acting as catalysts but only if the chemicals or chemicals
10    acting as catalysts effect a direct and immediate change
11    upon a graphic arts product. Beginning on July 1, 2017,
12    graphic arts machinery and equipment is included in the
13    manufacturing and assembling machinery and equipment
14    exemption under paragraph (14).
15        (5) A motor vehicle that is used for automobile
16    renting, as defined in the Automobile Renting Occupation
17    and Use Tax Act. This paragraph is exempt from the
18    provisions of Section 2-70.
19        (6) Personal property sold by a teacher-sponsored
20    student organization affiliated with an elementary or
21    secondary school located in Illinois.
22        (7) Until July 1, 2003, proceeds of that portion of
23    the selling price of a passenger car the sale of which is
24    subject to the Replacement Vehicle Tax.
25        (8) Personal property sold to an Illinois county fair
26    association for use in conducting, operating, or promoting

 

 

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

 

 

SB0157 Enrolled- 703 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 704 -LRB102 10128 HLH 16591 b

1    such a motor vehicle if that motor vehicle is used in a
2    manner that would qualify for the rolling stock exemption
3    otherwise provided for in this Act. For purposes of this
4    paragraph, "used for commercial purposes" means the
5    transportation of persons or property in furtherance of
6    any commercial or industrial enterprise whether for-hire
7    or not.
8        (13) Proceeds from sales to owners, lessors, or
9    shippers of tangible personal property that is utilized by
10    interstate carriers for hire for use as rolling stock
11    moving in interstate commerce and equipment operated by a
12    telecommunications provider, licensed as a common carrier
13    by the Federal Communications Commission, which is
14    permanently installed in or affixed to aircraft moving in
15    interstate commerce.
16        (14) Machinery and equipment that will be used by the
17    purchaser, or a lessee of the purchaser, primarily in the
18    process of manufacturing or assembling tangible personal
19    property for wholesale or retail sale or lease, whether
20    the sale or lease is made directly by the manufacturer or
21    by some other person, whether the materials used in the
22    process are owned by the manufacturer or some other
23    person, or whether the sale or lease is made apart from or
24    as an incident to the seller's engaging in the service
25    occupation of producing machines, tools, dies, jigs,
26    patterns, gauges, or other similar items of no commercial

 

 

SB0157 Enrolled- 705 -LRB102 10128 HLH 16591 b

1    value on special order for a particular purchaser. The
2    exemption provided by this paragraph (14) does not include
3    machinery and equipment used in (i) the generation of
4    electricity for wholesale or retail sale; (ii) the
5    generation or treatment of natural or artificial gas for
6    wholesale or retail sale that is delivered to customers
7    through pipes, pipelines, or mains; or (iii) the treatment
8    of water for wholesale or retail sale that is delivered to
9    customers through pipes, pipelines, or mains. The
10    provisions of Public Act 98-583 are declaratory of
11    existing law as to the meaning and scope of this
12    exemption. Beginning on July 1, 2017, the exemption
13    provided by this paragraph (14) includes, but is not
14    limited to, graphic arts machinery and equipment, as
15    defined in paragraph (4) of this Section.
16        (15) Proceeds of mandatory service charges separately
17    stated on customers' bills for purchase and consumption of
18    food and beverages, to the extent that the proceeds of the
19    service charge are in fact turned over as tips or as a
20    substitute for tips to the employees who participate
21    directly in preparing, serving, hosting or cleaning up the
22    food or beverage function with respect to which the
23    service charge is imposed.
24        (16) Tangible personal property sold to a purchaser if
25    the purchaser is exempt from use tax by operation of
26    federal law. This paragraph is exempt from the provisions

 

 

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1    of Section 2-70.
2        (17) Tangible personal property sold to a common
3    carrier by rail or motor that receives the physical
4    possession of the property in Illinois and that transports
5    the property, or shares with another common carrier in the
6    transportation of the property, out of Illinois on a
7    standard uniform bill of lading showing the seller of the
8    property as the shipper or consignor of the property to a
9    destination outside Illinois, for use outside Illinois.
10        (18) Legal tender, currency, medallions, or gold or
11    silver coinage issued by the State of Illinois, the
12    government of the United States of America, or the
13    government of any foreign country, and bullion.
14        (19) Until July 1, 2003, oil field exploration,
15    drilling, and production equipment, including (i) rigs and
16    parts of rigs, rotary rigs, cable tool rigs, and workover
17    rigs, (ii) pipe and tubular goods, including casing and
18    drill strings, (iii) pumps and pump-jack units, (iv)
19    storage tanks and flow lines, (v) any individual
20    replacement part for oil field exploration, drilling, and
21    production equipment, and (vi) machinery and equipment
22    purchased for lease; but excluding motor vehicles required
23    to be registered under the Illinois Vehicle Code.
24        (20) Photoprocessing machinery and equipment,
25    including repair and replacement parts, both new and used,
26    including that manufactured on special order, certified by

 

 

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

 

 

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1    flight that (i) is engaged in foreign trade or is engaged
2    in trade between the United States and any of its
3    possessions and (ii) transports at least one individual or
4    package for hire from the city of origination to the city
5    of final destination on the same aircraft, without regard
6    to a change in the flight number of that aircraft.
7        (23) A transaction in which the purchase order is
8    received by a florist who is located outside Illinois, but
9    who has a florist located in Illinois deliver the property
10    to the purchaser or the purchaser's donee in Illinois.
11        (24) Fuel consumed or used in the operation of ships,
12    barges, or vessels that are used primarily in or for the
13    transportation of property or the conveyance of persons
14    for hire on rivers bordering on this State if the fuel is
15    delivered by the seller to the purchaser's barge, ship, or
16    vessel while it is afloat upon that bordering river.
17        (25) Except as provided in item (25-5) of this
18    Section, a motor vehicle sold in this State to a
19    nonresident even though the motor vehicle is delivered to
20    the nonresident in this State, if the motor vehicle is not
21    to be titled in this State, and if a drive-away permit is
22    issued to the motor vehicle as provided in Section 3-603
23    of the Illinois Vehicle Code or if the nonresident
24    purchaser has vehicle registration plates to transfer to
25    the motor vehicle upon returning to his or her home state.
26    The issuance of the drive-away permit or having the

 

 

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1    out-of-state registration plates to be transferred is
2    prima facie evidence that the motor vehicle will not be
3    titled in this State.
4        (25-5) The exemption under item (25) does not apply if
5    the state in which the motor vehicle will be titled does
6    not allow a reciprocal exemption for a motor vehicle sold
7    and delivered in that state to an Illinois resident but
8    titled in Illinois. The tax collected under this Act on
9    the sale of a motor vehicle in this State to a resident of
10    another state that does not allow a reciprocal exemption
11    shall be imposed at a rate equal to the state's rate of tax
12    on taxable property in the state in which the purchaser is
13    a resident, except that the tax shall not exceed the tax
14    that would otherwise be imposed under this Act. At the
15    time of the sale, the purchaser shall execute a statement,
16    signed under penalty of perjury, of his or her intent to
17    title the vehicle in the state in which the purchaser is a
18    resident within 30 days after the sale and of the fact of
19    the payment to the State of Illinois of tax in an amount
20    equivalent to the state's rate of tax on taxable property
21    in his or her state of residence and shall submit the
22    statement to the appropriate tax collection agency in his
23    or her state of residence. In addition, the retailer must
24    retain a signed copy of the statement in his or her
25    records. Nothing in this item shall be construed to
26    require the removal of the vehicle from this state

 

 

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1    following the filing of an intent to title the vehicle in
2    the purchaser's state of residence if the purchaser titles
3    the vehicle in his or her state of residence within 30 days
4    after the date of sale. The tax collected under this Act in
5    accordance with this item (25-5) shall be proportionately
6    distributed as if the tax were collected at the 6.25%
7    general rate imposed under this Act.
8        (25-7) Beginning on July 1, 2007, no tax is imposed
9    under this Act on the sale of an aircraft, as defined in
10    Section 3 of the Illinois Aeronautics Act, if all of the
11    following conditions are met:
12            (1) the aircraft leaves this State within 15 days
13        after the later of either the issuance of the final
14        billing for the sale of the aircraft, or the
15        authorized approval for return to service, completion
16        of the maintenance record entry, and completion of the
17        test flight and ground test for inspection, as
18        required by 14 C.F.R. 91.407;
19            (2) the aircraft is not based or registered in
20        this State after the sale of the aircraft; and
21            (3) the seller retains in his or her books and
22        records and provides to the Department a signed and
23        dated certification from the purchaser, on a form
24        prescribed by the Department, certifying that the
25        requirements of this item (25-7) are met. The
26        certificate must also include the name and address of

 

 

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1        the purchaser, the address of the location where the
2        aircraft is to be titled or registered, the address of
3        the primary physical location of the aircraft, and
4        other information that the Department may reasonably
5        require.
6        For purposes of this item (25-7):
7        "Based in this State" means hangared, stored, or
8    otherwise used, excluding post-sale customizations as
9    defined in this Section, for 10 or more days in each
10    12-month period immediately following the date of the sale
11    of the aircraft.
12        "Registered in this State" means an aircraft
13    registered with the Department of Transportation,
14    Aeronautics Division, or titled or registered with the
15    Federal Aviation Administration to an address located in
16    this State.
17        This paragraph (25-7) is exempt from the provisions of
18    Section 2-70.
19        (26) Semen used for artificial insemination of
20    livestock for direct agricultural production.
21        (27) Horses, or interests in horses, registered with
22    and meeting the requirements of any of the Arabian Horse
23    Club Registry of America, Appaloosa Horse Club, American
24    Quarter Horse Association, United States Trotting
25    Association, or Jockey Club, as appropriate, used for
26    purposes of breeding or racing for prizes. This item (27)

 

 

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1    is exempt from the provisions of Section 2-70, and the
2    exemption provided for under this item (27) applies for
3    all periods beginning May 30, 1995, but no claim for
4    credit or refund is allowed on or after January 1, 2008
5    (the effective date of Public Act 95-88) for such taxes
6    paid during the period beginning May 30, 2000 and ending
7    on January 1, 2008 (the effective date of Public Act
8    95-88).
9        (28) Computers and communications equipment utilized
10    for any hospital purpose and equipment used in the
11    diagnosis, analysis, or treatment of hospital patients
12    sold to a lessor who leases the equipment, under a lease of
13    one year or longer executed or in effect at the time of the
14    purchase, to a hospital that has been issued an active tax
15    exemption identification number by the Department under
16    Section 1g of this Act.
17        (29) Personal property sold to a lessor who leases the
18    property, under a lease of one year or longer executed or
19    in effect at the time of the purchase, to a governmental
20    body that has been issued an active tax exemption
21    identification number by the Department under Section 1g
22    of this Act.
23        (30) Beginning with taxable years ending on or after
24    December 31, 1995 and ending with taxable years ending on
25    or before December 31, 2004, personal property that is
26    donated for disaster relief to be used in a State or

 

 

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1    federally declared disaster area in Illinois or bordering
2    Illinois by a manufacturer or retailer that is registered
3    in this State to a corporation, society, association,
4    foundation, or institution that has been issued a sales
5    tax exemption identification number by the Department that
6    assists victims of the disaster who reside within the
7    declared disaster area.
8        (31) Beginning with taxable years ending on or after
9    December 31, 1995 and ending with taxable years ending on
10    or before December 31, 2004, personal property that is
11    used in the performance of infrastructure repairs in this
12    State, including but not limited to municipal roads and
13    streets, access roads, bridges, sidewalks, waste disposal
14    systems, water and sewer line extensions, water
15    distribution and purification facilities, storm water
16    drainage and retention facilities, and sewage treatment
17    facilities, resulting from a State or federally declared
18    disaster in Illinois or bordering Illinois when such
19    repairs are initiated on facilities located in the
20    declared disaster area within 6 months after the disaster.
21        (32) Beginning July 1, 1999, game or game birds sold
22    at a "game breeding and hunting preserve area" as that
23    term is used in the Wildlife Code. This paragraph is
24    exempt from the provisions of Section 2-70.
25        (33) A motor vehicle, as that term is defined in
26    Section 1-146 of the Illinois Vehicle Code, that is

 

 

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1    donated to a corporation, limited liability company,
2    society, association, foundation, or institution that is
3    determined by the Department to be organized and operated
4    exclusively for educational purposes. For purposes of this
5    exemption, "a corporation, limited liability company,
6    society, association, foundation, or institution organized
7    and operated exclusively for educational purposes" means
8    all tax-supported public schools, private schools that
9    offer systematic instruction in useful branches of
10    learning by methods common to public schools and that
11    compare favorably in their scope and intensity with the
12    course of study presented in tax-supported schools, and
13    vocational or technical schools or institutes organized
14    and operated exclusively to provide a course of study of
15    not less than 6 weeks duration and designed to prepare
16    individuals to follow a trade or to pursue a manual,
17    technical, mechanical, industrial, business, or commercial
18    occupation.
19        (34) Beginning January 1, 2000, personal property,
20    including food, purchased through fundraising events for
21    the benefit of a public or private elementary or secondary
22    school, a group of those schools, or one or more school
23    districts if the events are sponsored by an entity
24    recognized by the school district that consists primarily
25    of volunteers and includes parents and teachers of the
26    school children. This paragraph does not apply to

 

 

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1    fundraising events (i) for the benefit of private home
2    instruction or (ii) for which the fundraising entity
3    purchases the personal property sold at the events from
4    another individual or entity that sold the property for
5    the purpose of resale by the fundraising entity and that
6    profits from the sale to the fundraising entity. This
7    paragraph is exempt from the provisions of Section 2-70.
8        (35) Beginning January 1, 2000 and through December
9    31, 2001, new or used automatic vending machines that
10    prepare and serve hot food and beverages, including
11    coffee, soup, and other items, and replacement parts for
12    these machines. Beginning January 1, 2002 and through June
13    30, 2003, machines and parts for machines used in
14    commercial, coin-operated amusement and vending business
15    if a use or occupation tax is paid on the gross receipts
16    derived from the use of the commercial, coin-operated
17    amusement and vending machines. This paragraph is exempt
18    from the provisions of Section 2-70.
19        (35-5) Beginning August 23, 2001 and through June 30,
20    2016, food for human consumption that is to be consumed
21    off the premises where it is sold (other than alcoholic
22    beverages, soft drinks, and food that has been prepared
23    for immediate consumption) and prescription and
24    nonprescription medicines, drugs, medical appliances, and
25    insulin, urine testing materials, syringes, and needles
26    used by diabetics, for human use, when purchased for use

 

 

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1    by a person receiving medical assistance under Article V
2    of the Illinois Public Aid Code who resides in a licensed
3    long-term care facility, as defined in the Nursing Home
4    Care Act, or a licensed facility as defined in the ID/DD
5    Community Care Act, the MC/DD Act, or the Specialized
6    Mental Health Rehabilitation Act of 2013.
7        (36) Beginning August 2, 2001, computers and
8    communications equipment utilized for any hospital purpose
9    and equipment used in the diagnosis, analysis, or
10    treatment of hospital patients sold to a lessor who leases
11    the equipment, under a lease of one year or longer
12    executed or in effect at the time of the purchase, to a
13    hospital that has been issued an active tax exemption
14    identification number by the Department under Section 1g
15    of this Act. This paragraph is exempt from the provisions
16    of Section 2-70.
17        (37) Beginning August 2, 2001, personal property sold
18    to a lessor who leases the property, under a lease of one
19    year or longer executed or in effect at the time of the
20    purchase, to a governmental body that has been issued an
21    active tax exemption identification number by the
22    Department under Section 1g of this Act. This paragraph is
23    exempt from the provisions of Section 2-70.
24        (38) Beginning on January 1, 2002 and through June 30,
25    2016, tangible personal property purchased from an
26    Illinois retailer by a taxpayer engaged in centralized

 

 

SB0157 Enrolled- 717 -LRB102 10128 HLH 16591 b

1    purchasing activities in Illinois who will, upon receipt
2    of the property in Illinois, temporarily store the
3    property in Illinois (i) for the purpose of subsequently
4    transporting it outside this State for use or consumption
5    thereafter solely outside this State or (ii) for the
6    purpose of being processed, fabricated, or manufactured
7    into, attached to, or incorporated into other tangible
8    personal property to be transported outside this State and
9    thereafter used or consumed solely outside this State. The
10    Director of Revenue shall, pursuant to rules adopted in
11    accordance with the Illinois Administrative Procedure Act,
12    issue a permit to any taxpayer in good standing with the
13    Department who is eligible for the exemption under this
14    paragraph (38). The permit issued under this paragraph
15    (38) shall authorize the holder, to the extent and in the
16    manner specified in the rules adopted under this Act, to
17    purchase tangible personal property from a retailer exempt
18    from the taxes imposed by this Act. Taxpayers shall
19    maintain all necessary books and records to substantiate
20    the use and consumption of all such tangible personal
21    property outside of the State of Illinois.
22        (39) Beginning January 1, 2008, tangible personal
23    property used in the construction or maintenance of a
24    community water supply, as defined under Section 3.145 of
25    the Environmental Protection Act, that is operated by a
26    not-for-profit corporation that holds a valid water supply

 

 

SB0157 Enrolled- 718 -LRB102 10128 HLH 16591 b

1    permit issued under Title IV of the Environmental
2    Protection Act. This paragraph is exempt from the
3    provisions of Section 2-70.
4        (40) Beginning January 1, 2010 and continuing through
5    December 31, 2024, materials, parts, equipment,
6    components, and furnishings incorporated into or upon an
7    aircraft as part of the modification, refurbishment,
8    completion, replacement, repair, or maintenance of the
9    aircraft. This exemption includes consumable supplies used
10    in the modification, refurbishment, completion,
11    replacement, repair, and maintenance of aircraft, but
12    excludes any materials, parts, equipment, components, and
13    consumable supplies used in the modification, replacement,
14    repair, and maintenance of aircraft engines or power
15    plants, whether such engines or power plants are installed
16    or uninstalled upon any such aircraft. "Consumable
17    supplies" include, but are not limited to, adhesive, tape,
18    sandpaper, general purpose lubricants, cleaning solution,
19    latex gloves, and protective films. This exemption applies
20    only to the sale of qualifying tangible personal property
21    to persons who modify, refurbish, complete, replace, or
22    maintain an aircraft and who (i) hold an Air Agency
23    Certificate and are empowered to operate an approved
24    repair station by the Federal Aviation Administration,
25    (ii) have a Class IV Rating, and (iii) conduct operations
26    in accordance with Part 145 of the Federal Aviation

 

 

SB0157 Enrolled- 719 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 720 -LRB102 10128 HLH 16591 b

1    Section 11-65-25 of the Illinois Municipal Code. This
2    paragraph is exempt from the provisions of Section 2-70.
3        (42) Beginning January 1, 2017 and through December
4    31, 2026, menstrual pads, tampons, and menstrual cups.
5        (43) Merchandise that is subject to the Rental
6    Purchase Agreement Occupation and Use Tax. The purchaser
7    must certify that the item is purchased to be rented
8    subject to a rental purchase agreement, as defined in the
9    Rental Purchase Agreement Act, and provide proof of
10    registration under the Rental Purchase Agreement
11    Occupation and Use Tax Act. This paragraph is exempt from
12    the provisions of Section 2-70.
13        (44) Qualified tangible personal property used in the
14    construction or operation of a data center that has been
15    granted a certificate of exemption by the Department of
16    Commerce and Economic Opportunity, whether that tangible
17    personal property is purchased by the owner, operator, or
18    tenant of the data center or by a contractor or
19    subcontractor of the owner, operator, or tenant. Data
20    centers that would have qualified for a certificate of
21    exemption prior to January 1, 2020 had this amendatory Act
22    of the 101st General Assembly been in effect, may apply
23    for and obtain an exemption for subsequent purchases of
24    computer equipment or enabling software purchased or
25    leased to upgrade, supplement, or replace computer
26    equipment or enabling software purchased or leased in the

 

 

SB0157 Enrolled- 721 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 722 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 723 -LRB102 10128 HLH 16591 b

1    that have properly remitted tax under this Act on such
2    sales may file a claim for credit as provided in Section 6
3    of this Act. No claim is allowed, however, for such taxes
4    for which a credit or refund has been issued to the
5    marketplace facilitator under the Use Tax Act, or for
6    which the marketplace facilitator has filed a claim for
7    credit or refund under the Use Tax Act.
8        (46) Beginning July 1, 2022, breast pumps, breast pump
9    collection and storage supplies, and breast pump kits.
10    This item (46) is exempt from the provisions of Section
11    2-70. As used in this item (46):
12        "Breast pump" means an electrically controlled or
13    manually controlled pump device designed or marketed to be
14    used to express milk from a human breast during lactation,
15    including the pump device and any battery, AC adapter, or
16    other power supply unit that is used to power the pump
17    device and is packaged and sold with the pump device at the
18    time of sale.
19        "Breast pump collection and storage supplies" means
20    items of tangible personal property designed or marketed
21    to be used in conjunction with a breast pump to collect
22    milk expressed from a human breast and to store collected
23    milk until it is ready for consumption.
24        "Breast pump collection and storage supplies"
25    includes, but is not limited to: breast shields and breast
26    shield connectors; breast pump tubes and tubing adapters;

 

 

SB0157 Enrolled- 724 -LRB102 10128 HLH 16591 b

1    breast pump valves and membranes; backflow protectors and
2    backflow protector adaptors; bottles and bottle caps
3    specific to the operation of the breast pump; and breast
4    milk storage bags.
5        "Breast pump collection and storage supplies" does not
6    include: (1) bottles and bottle caps not specific to the
7    operation of the breast pump; (2) breast pump travel bags
8    and other similar carrying accessories, including ice
9    packs, labels, and other similar products; (3) breast pump
10    cleaning supplies; (4) nursing bras, bra pads, breast
11    shells, and other similar products; and (5) creams,
12    ointments, and other similar products that relieve
13    breastfeeding-related symptoms or conditions of the
14    breasts or nipples, unless sold as part of a breast pump
15    kit that is pre-packaged by the breast pump manufacturer
16    or distributor.
17        "Breast pump kit" means a kit that: (1) contains no
18    more than a breast pump, breast pump collection and
19    storage supplies, a rechargeable battery for operating the
20    breast pump, a breastmilk cooler, bottle stands, ice
21    packs, and a breast pump carrying case; and (2) is
22    pre-packaged as a breast pump kit by the breast pump
23    manufacturer or distributor.
24(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
25101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
268-27-21; revised 11-9-21.)
 

 

 

SB0157 Enrolled- 725 -LRB102 10128 HLH 16591 b

1
ARTICLE 75. USE AND OCCUPATION TAXES-EQUIPMENT

 
2    Section 75-5. The Use Tax Act is amended by changing
3Section 3-5 as follows:
 
4    (35 ILCS 105/3-5)
5    Sec. 3-5. Exemptions. Use of the following tangible
6personal property is exempt from the tax imposed by this Act:
7    (1) Personal property purchased from a corporation,
8society, association, foundation, institution, or
9organization, other than a limited liability company, that is
10organized and operated as a not-for-profit service enterprise
11for the benefit of persons 65 years of age or older if the
12personal property was not purchased by the enterprise for the
13purpose of resale by the enterprise.
14    (2) Personal property purchased by a not-for-profit
15Illinois county fair association for use in conducting,
16operating, or promoting the county fair.
17    (3) Personal property purchased by a not-for-profit arts
18or cultural organization that establishes, by proof required
19by the Department by rule, that it has received an exemption
20under Section 501(c)(3) of the Internal Revenue Code and that
21is organized and operated primarily for the presentation or
22support of arts or cultural programming, activities, or
23services. These organizations include, but are not limited to,

 

 

SB0157 Enrolled- 726 -LRB102 10128 HLH 16591 b

1music and dramatic arts organizations such as symphony
2orchestras and theatrical groups, arts and cultural service
3organizations, local arts councils, visual arts organizations,
4and media arts organizations. On and after July 1, 2001 (the
5effective date of Public Act 92-35), however, an entity
6otherwise eligible for this exemption shall not make tax-free
7purchases unless it has an active identification number issued
8by the Department.
9    (4) Personal property purchased by a governmental body, by
10a corporation, society, association, foundation, or
11institution organized and operated exclusively for charitable,
12religious, or educational purposes, or by a not-for-profit
13corporation, society, association, foundation, institution, or
14organization that has no compensated officers or employees and
15that is organized and operated primarily for the recreation of
16persons 55 years of age or older. A limited liability company
17may qualify for the exemption under this paragraph only if the
18limited liability company is organized and operated
19exclusively for educational purposes. On and after July 1,
201987, however, no entity otherwise eligible for this exemption
21shall make tax-free purchases unless it has an active
22exemption identification number issued by the Department.
23    (5) Until July 1, 2003, a passenger car that is a
24replacement vehicle to the extent that the purchase price of
25the car is subject to the Replacement Vehicle Tax.
26    (6) Until July 1, 2003 and beginning again on September 1,

 

 

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12004 through August 30, 2014, graphic arts machinery and
2equipment, including repair and replacement parts, both new
3and used, and including that manufactured on special order,
4certified by the purchaser to be used primarily for graphic
5arts production, and including machinery and equipment
6purchased for lease. Equipment includes chemicals or chemicals
7acting as catalysts but only if the chemicals or chemicals
8acting as catalysts effect a direct and immediate change upon
9a graphic arts product. Beginning on July 1, 2017, graphic
10arts machinery and equipment is included in the manufacturing
11and assembling machinery and equipment exemption under
12paragraph (18).
13    (7) Farm chemicals.
14    (8) Legal tender, currency, medallions, or gold or silver
15coinage issued by the State of Illinois, the government of the
16United States of America, or the government of any foreign
17country, and bullion.
18    (9) Personal property purchased from a teacher-sponsored
19student organization affiliated with an elementary or
20secondary school located in Illinois.
21    (10) A motor vehicle that is used for automobile renting,
22as defined in the Automobile Renting Occupation and Use Tax
23Act.
24    (11) Farm machinery and equipment, both new and used,
25including that manufactured on special order, certified by the
26purchaser to be used primarily for production agriculture or

 

 

SB0157 Enrolled- 728 -LRB102 10128 HLH 16591 b

1State or federal agricultural programs, including individual
2replacement parts for the machinery and equipment, including
3machinery and equipment purchased for lease, and including
4implements of husbandry defined in Section 1-130 of the
5Illinois Vehicle Code, farm machinery and agricultural
6chemical and fertilizer spreaders, and nurse wagons required
7to be registered under Section 3-809 of the Illinois Vehicle
8Code, but excluding other motor vehicles required to be
9registered under the Illinois Vehicle Code. Horticultural
10polyhouses or hoop houses used for propagating, growing, or
11overwintering plants shall be considered farm machinery and
12equipment under this item (11). Agricultural chemical tender
13tanks and dry boxes shall include units sold separately from a
14motor vehicle required to be licensed and units sold mounted
15on a motor vehicle required to be licensed if the selling price
16of the tender is separately stated.
17    Farm machinery and equipment shall include precision
18farming equipment that is installed or purchased to be
19installed on farm machinery and equipment including, but not
20limited to, tractors, harvesters, sprayers, planters, seeders,
21or spreaders. Precision farming equipment includes, but is not
22limited to, soil testing sensors, computers, monitors,
23software, global positioning and mapping systems, and other
24such equipment.
25    Farm machinery and equipment also includes computers,
26sensors, software, and related equipment used primarily in the

 

 

SB0157 Enrolled- 729 -LRB102 10128 HLH 16591 b

1computer-assisted operation of production agriculture
2facilities, equipment, and activities such as, but not limited
3to, the collection, monitoring, and correlation of animal and
4crop data for the purpose of formulating animal diets and
5agricultural chemicals. This item (11) is exempt from the
6provisions of Section 3-90.
7    (12) Until June 30, 2013, fuel and petroleum products sold
8to or used by an air common carrier, certified by the carrier
9to be used for consumption, shipment, or storage in the
10conduct of its business as an air common carrier, for a flight
11destined for or returning from a location or locations outside
12the United States without regard to previous or subsequent
13domestic stopovers.
14    Beginning July 1, 2013, fuel and petroleum products sold
15to or used by an air carrier, certified by the carrier to be
16used for consumption, shipment, or storage in the conduct of
17its business as an air common carrier, for a flight that (i) is
18engaged in foreign trade or is engaged in trade between the
19United States and any of its possessions and (ii) transports
20at least one individual or package for hire from the city of
21origination to the city of final destination on the same
22aircraft, without regard to a change in the flight number of
23that aircraft.
24    (13) Proceeds of mandatory service charges separately
25stated on customers' bills for the purchase and consumption of
26food and beverages purchased at retail from a retailer, to the

 

 

SB0157 Enrolled- 730 -LRB102 10128 HLH 16591 b

1extent that the proceeds of the service charge are in fact
2turned over as tips or as a substitute for tips to the
3employees who participate directly in preparing, serving,
4hosting or cleaning up the food or beverage function with
5respect to which the service charge is imposed.
6    (14) Until July 1, 2003, oil field exploration, drilling,
7and production equipment, including (i) rigs and parts of
8rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
9pipe and tubular goods, including casing and drill strings,
10(iii) pumps and pump-jack units, (iv) storage tanks and flow
11lines, (v) any individual replacement part for oil field
12exploration, drilling, and production equipment, and (vi)
13machinery and equipment purchased for lease; but excluding
14motor vehicles required to be registered under the Illinois
15Vehicle Code.
16    (15) Photoprocessing machinery and equipment, including
17repair and replacement parts, both new and used, including
18that manufactured on special order, certified by the purchaser
19to be used primarily for photoprocessing, and including
20photoprocessing machinery and equipment purchased for lease.
21    (16) Until July 1, 2028 July 1, 2023, coal and aggregate
22exploration, mining, off-highway hauling, processing,
23maintenance, and reclamation equipment, including replacement
24parts and equipment, and including equipment purchased for
25lease, but excluding motor vehicles required to be registered
26under the Illinois Vehicle Code. The changes made to this

 

 

SB0157 Enrolled- 731 -LRB102 10128 HLH 16591 b

1Section by Public Act 97-767 apply on and after July 1, 2003,
2but no claim for credit or refund is allowed on or after August
316, 2013 (the effective date of Public Act 98-456) for such
4taxes paid during the period beginning July 1, 2003 and ending
5on August 16, 2013 (the effective date of Public Act 98-456).
6    (17) Until July 1, 2003, distillation machinery and
7equipment, sold as a unit or kit, assembled or installed by the
8retailer, certified by the user to be used only for the
9production of ethyl alcohol that will be used for consumption
10as motor fuel or as a component of motor fuel for the personal
11use of the user, and not subject to sale or resale.
12    (18) Manufacturing and assembling machinery and equipment
13used primarily in the process of manufacturing or assembling
14tangible personal property for wholesale or retail sale or
15lease, whether that sale or lease is made directly by the
16manufacturer or by some other person, whether the materials
17used in the process are owned by the manufacturer or some other
18person, or whether that sale or lease is made apart from or as
19an incident to the seller's engaging in the service occupation
20of producing machines, tools, dies, jigs, patterns, gauges, or
21other similar items of no commercial value on special order
22for a particular purchaser. The exemption provided by this
23paragraph (18) includes production related tangible personal
24property, as defined in Section 3-50, purchased on or after
25July 1, 2019. The exemption provided by this paragraph (18)
26does not include machinery and equipment used in (i) the

 

 

SB0157 Enrolled- 732 -LRB102 10128 HLH 16591 b

1generation of electricity for wholesale or retail sale; (ii)
2the generation or treatment of natural or artificial gas for
3wholesale or retail sale that is delivered to customers
4through pipes, pipelines, or mains; or (iii) the treatment of
5water for wholesale or retail sale that is delivered to
6customers through pipes, pipelines, or mains. The provisions
7of Public Act 98-583 are declaratory of existing law as to the
8meaning and scope of this exemption. Beginning on July 1,
92017, the exemption provided by this paragraph (18) includes,
10but is not limited to, graphic arts machinery and equipment,
11as defined in paragraph (6) of this Section.
12    (19) Personal property delivered to a purchaser or
13purchaser's donee inside Illinois when the purchase order for
14that personal property was received by a florist located
15outside Illinois who has a florist located inside Illinois
16deliver the personal property.
17    (20) Semen used for artificial insemination of livestock
18for direct agricultural production.
19    (21) Horses, or interests in horses, registered with and
20meeting the requirements of any of the Arabian Horse Club
21Registry of America, Appaloosa Horse Club, American Quarter
22Horse Association, United States Trotting Association, or
23Jockey Club, as appropriate, used for purposes of breeding or
24racing for prizes. This item (21) is exempt from the
25provisions of Section 3-90, and the exemption provided for
26under this item (21) applies for all periods beginning May 30,

 

 

SB0157 Enrolled- 733 -LRB102 10128 HLH 16591 b

11995, but no claim for credit or refund is allowed on or after
2January 1, 2008 for such taxes paid during the period
3beginning May 30, 2000 and ending on January 1, 2008.
4    (22) Computers and communications equipment utilized for
5any hospital purpose and equipment used in the diagnosis,
6analysis, or treatment of hospital patients purchased by a
7lessor who leases the equipment, under a lease of one year or
8longer executed or in effect at the time the lessor would
9otherwise be subject to the tax imposed by this Act, to a
10hospital that has been issued an active tax exemption
11identification number by the Department under Section 1g of
12the Retailers' Occupation Tax Act. If the equipment is leased
13in a manner that does not qualify for this exemption or is used
14in any other non-exempt manner, the lessor shall be liable for
15the tax imposed under this Act or the Service Use Tax Act, as
16the case may be, based on the fair market value of the property
17at the time the non-qualifying use occurs. No lessor shall
18collect or attempt to collect an amount (however designated)
19that purports to reimburse that lessor for the tax imposed by
20this Act or the Service Use Tax Act, as the case may be, if the
21tax has not been paid by the lessor. If a lessor improperly
22collects any such amount from the lessee, the lessee shall
23have a legal right to claim a refund of that amount from the
24lessor. If, however, that amount is not refunded to the lessee
25for any reason, the lessor is liable to pay that amount to the
26Department.

 

 

SB0157 Enrolled- 734 -LRB102 10128 HLH 16591 b

1    (23) Personal property purchased by a lessor who leases
2the property, under a lease of one year or longer executed or
3in effect at the time the lessor would otherwise be subject to
4the tax imposed by this Act, to a governmental body that has
5been issued an active sales tax exemption identification
6number by the Department under Section 1g of the Retailers'
7Occupation Tax Act. If the property is leased in a manner that
8does not qualify for this exemption or used in any other
9non-exempt manner, the lessor shall be liable for the tax
10imposed under this Act or the Service Use Tax Act, as the case
11may be, based on the fair market value of the property at the
12time the non-qualifying use occurs. No lessor shall collect or
13attempt to collect an amount (however designated) that
14purports to reimburse that lessor for the tax imposed by this
15Act or the Service Use Tax Act, as the case may be, if the tax
16has not been paid by the lessor. If a lessor improperly
17collects any such amount from the lessee, the lessee shall
18have a legal right to claim a refund of that amount from the
19lessor. If, however, that amount is not refunded to the lessee
20for any reason, the lessor is liable to pay that amount to the
21Department.
22    (24) Beginning with taxable years ending on or after
23December 31, 1995 and ending with taxable years ending on or
24before December 31, 2004, personal property that is donated
25for disaster relief to be used in a State or federally declared
26disaster area in Illinois or bordering Illinois by a

 

 

SB0157 Enrolled- 735 -LRB102 10128 HLH 16591 b

1manufacturer or retailer that is registered in this State to a
2corporation, society, association, foundation, or institution
3that has been issued a sales tax exemption identification
4number by the Department that assists victims of the disaster
5who reside within the declared disaster area.
6    (25) Beginning with taxable years ending on or after
7December 31, 1995 and ending with taxable years ending on or
8before December 31, 2004, personal property that is used in
9the performance of infrastructure repairs in this State,
10including but not limited to municipal roads and streets,
11access roads, bridges, sidewalks, waste disposal systems,
12water and sewer line extensions, water distribution and
13purification facilities, storm water drainage and retention
14facilities, and sewage treatment facilities, resulting from a
15State or federally declared disaster in Illinois or bordering
16Illinois when such repairs are initiated on facilities located
17in the declared disaster area within 6 months after the
18disaster.
19    (26) Beginning July 1, 1999, game or game birds purchased
20at a "game breeding and hunting preserve area" as that term is
21used in the Wildlife Code. This paragraph is exempt from the
22provisions of Section 3-90.
23    (27) A motor vehicle, as that term is defined in Section
241-146 of the Illinois Vehicle Code, that is donated to a
25corporation, limited liability company, society, association,
26foundation, or institution that is determined by the

 

 

SB0157 Enrolled- 736 -LRB102 10128 HLH 16591 b

1Department to be organized and operated exclusively for
2educational purposes. For purposes of this exemption, "a
3corporation, limited liability company, society, association,
4foundation, or institution organized and operated exclusively
5for educational purposes" means all tax-supported public
6schools, private schools that offer systematic instruction in
7useful branches of learning by methods common to public
8schools and that compare favorably in their scope and
9intensity with the course of study presented in tax-supported
10schools, and vocational or technical schools or institutes
11organized and operated exclusively to provide a course of
12study of not less than 6 weeks duration and designed to prepare
13individuals to follow a trade or to pursue a manual,
14technical, mechanical, industrial, business, or commercial
15occupation.
16    (28) Beginning January 1, 2000, personal property,
17including food, purchased through fundraising events for the
18benefit of a public or private elementary or secondary school,
19a group of those schools, or one or more school districts if
20the events are sponsored by an entity recognized by the school
21district that consists primarily of volunteers and includes
22parents and teachers of the school children. This paragraph
23does not apply to fundraising events (i) for the benefit of
24private home instruction or (ii) for which the fundraising
25entity purchases the personal property sold at the events from
26another individual or entity that sold the property for the

 

 

SB0157 Enrolled- 737 -LRB102 10128 HLH 16591 b

1purpose of resale by the fundraising entity and that profits
2from the sale to the fundraising entity. This paragraph is
3exempt from the provisions of Section 3-90.
4    (29) Beginning January 1, 2000 and through December 31,
52001, new or used automatic vending machines that prepare and
6serve hot food and beverages, including coffee, soup, and
7other items, and replacement parts for these machines.
8Beginning January 1, 2002 and through June 30, 2003, machines
9and parts for machines used in commercial, coin-operated
10amusement and vending business if a use or occupation tax is
11paid on the gross receipts derived from the use of the
12commercial, coin-operated amusement and vending machines. This
13paragraph is exempt from the provisions of Section 3-90.
14    (30) Beginning January 1, 2001 and through June 30, 2016,
15food for human consumption that is to be consumed off the
16premises where it is sold (other than alcoholic beverages,
17soft drinks, and food that has been prepared for immediate
18consumption) and prescription and nonprescription medicines,
19drugs, medical appliances, and insulin, urine testing
20materials, syringes, and needles used by diabetics, for human
21use, when purchased for use by a person receiving medical
22assistance under Article V of the Illinois Public Aid Code who
23resides in a licensed long-term care facility, as defined in
24the Nursing Home Care Act, or in a licensed facility as defined
25in the ID/DD Community Care Act, the MC/DD Act, or the
26Specialized Mental Health Rehabilitation Act of 2013.

 

 

SB0157 Enrolled- 738 -LRB102 10128 HLH 16591 b

1    (31) Beginning on August 2, 2001 (the effective date of
2Public Act 92-227), computers and communications equipment
3utilized for any hospital purpose and equipment used in the
4diagnosis, analysis, or treatment of hospital patients
5purchased by a lessor who leases the equipment, under a lease
6of one year or longer executed or in effect at the time the
7lessor would otherwise be subject to the tax imposed by this
8Act, to a hospital that has been issued an active tax exemption
9identification number by the Department under Section 1g of
10the Retailers' Occupation Tax Act. If the equipment is leased
11in a manner that does not qualify for this exemption or is used
12in any other nonexempt manner, the lessor shall be liable for
13the tax imposed under this Act or the Service Use Tax Act, as
14the case may be, based on the fair market value of the property
15at the time the nonqualifying use occurs. No lessor shall
16collect or attempt to collect an amount (however designated)
17that purports to reimburse that lessor for the tax imposed by
18this Act or the Service Use Tax Act, as the case may be, if the
19tax has not been paid by the lessor. If a lessor improperly
20collects any such amount from the lessee, the lessee shall
21have a legal right to claim a refund of that amount from the
22lessor. If, however, that amount is not refunded to the lessee
23for any reason, the lessor is liable to pay that amount to the
24Department. This paragraph is exempt from the provisions of
25Section 3-90.
26    (32) Beginning on August 2, 2001 (the effective date of

 

 

SB0157 Enrolled- 739 -LRB102 10128 HLH 16591 b

1Public Act 92-227), personal property purchased by a lessor
2who leases the property, under a lease of one year or longer
3executed or in effect at the time the lessor would otherwise be
4subject to the tax imposed by this Act, to a governmental body
5that has been issued an active sales tax exemption
6identification number by the Department under Section 1g of
7the Retailers' Occupation Tax Act. If the property is leased
8in a manner that does not qualify for this exemption or used in
9any other nonexempt manner, the lessor shall be liable for the
10tax imposed under this Act or the Service Use Tax Act, as the
11case may be, based on the fair market value of the property at
12the time the nonqualifying use occurs. No lessor shall collect
13or attempt to collect an amount (however designated) that
14purports to reimburse that lessor for the tax imposed by this
15Act or the Service Use Tax Act, as the case may be, if the tax
16has not been paid by the lessor. If a lessor improperly
17collects any such amount from the lessee, the lessee shall
18have a legal right to claim a refund of that amount from the
19lessor. If, however, that amount is not refunded to the lessee
20for any reason, the lessor is liable to pay that amount to the
21Department. This paragraph is exempt from the provisions of
22Section 3-90.
23    (33) On and after July 1, 2003 and through June 30, 2004,
24the use in this State of motor vehicles of the second division
25with a gross vehicle weight in excess of 8,000 pounds and that
26are subject to the commercial distribution fee imposed under

 

 

SB0157 Enrolled- 740 -LRB102 10128 HLH 16591 b

1Section 3-815.1 of the Illinois Vehicle Code. Beginning on
2July 1, 2004 and through June 30, 2005, the use in this State
3of motor vehicles of the second division: (i) with a gross
4vehicle weight rating in excess of 8,000 pounds; (ii) that are
5subject to the commercial distribution fee imposed under
6Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
7are primarily used for commercial purposes. Through June 30,
82005, this exemption applies to repair and replacement parts
9added after the initial purchase of such a motor vehicle if
10that motor vehicle is used in a manner that would qualify for
11the rolling stock exemption otherwise provided for in this
12Act. For purposes of this paragraph, the term "used for
13commercial purposes" means the transportation of persons or
14property in furtherance of any commercial or industrial
15enterprise, whether for-hire or not.
16    (34) Beginning January 1, 2008, tangible personal property
17used in the construction or maintenance of a community water
18supply, as defined under Section 3.145 of the Environmental
19Protection Act, that is operated by a not-for-profit
20corporation that holds a valid water supply permit issued
21under Title IV of the Environmental Protection Act. This
22paragraph is exempt from the provisions of Section 3-90.
23    (35) Beginning January 1, 2010 and continuing through
24December 31, 2024, materials, parts, equipment, components,
25and furnishings incorporated into or upon an aircraft as part
26of the modification, refurbishment, completion, replacement,

 

 

SB0157 Enrolled- 741 -LRB102 10128 HLH 16591 b

1repair, or maintenance of the aircraft. This exemption
2includes consumable supplies used in the modification,
3refurbishment, completion, replacement, repair, and
4maintenance of aircraft, but excludes any materials, parts,
5equipment, components, and consumable supplies used in the
6modification, replacement, repair, and maintenance of aircraft
7engines or power plants, whether such engines or power plants
8are installed or uninstalled upon any such aircraft.
9"Consumable supplies" include, but are not limited to,
10adhesive, tape, sandpaper, general purpose lubricants,
11cleaning solution, latex gloves, and protective films. This
12exemption applies only to the use of qualifying tangible
13personal property by persons who modify, refurbish, complete,
14repair, replace, or maintain aircraft and who (i) hold an Air
15Agency Certificate and are empowered to operate an approved
16repair station by the Federal Aviation Administration, (ii)
17have a Class IV Rating, and (iii) conduct operations in
18accordance with Part 145 of the Federal Aviation Regulations.
19The exemption does not include aircraft operated by a
20commercial air carrier providing scheduled passenger air
21service pursuant to authority issued under Part 121 or Part
22129 of the Federal Aviation Regulations. The changes made to
23this paragraph (35) by Public Act 98-534 are declarative of
24existing law. It is the intent of the General Assembly that the
25exemption under this paragraph (35) applies continuously from
26January 1, 2010 through December 31, 2024; however, no claim

 

 

SB0157 Enrolled- 742 -LRB102 10128 HLH 16591 b

1for credit or refund is allowed for taxes paid as a result of
2the disallowance of this exemption on or after January 1, 2015
3and prior to the effective date of this amendatory Act of the
4101st General Assembly.
5    (36) Tangible personal property purchased by a
6public-facilities corporation, as described in Section
711-65-10 of the Illinois Municipal Code, for purposes of
8constructing or furnishing a municipal convention hall, but
9only if the legal title to the municipal convention hall is
10transferred to the municipality without any further
11consideration by or on behalf of the municipality at the time
12of the completion of the municipal convention hall or upon the
13retirement or redemption of any bonds or other debt
14instruments issued by the public-facilities corporation in
15connection with the development of the municipal convention
16hall. This exemption includes existing public-facilities
17corporations as provided in Section 11-65-25 of the Illinois
18Municipal Code. This paragraph is exempt from the provisions
19of Section 3-90.
20    (37) Beginning January 1, 2017 and through December 31,
212026, menstrual pads, tampons, and menstrual cups.
22    (38) Merchandise that is subject to the Rental Purchase
23Agreement Occupation and Use Tax. The purchaser must certify
24that the item is purchased to be rented subject to a rental
25purchase agreement, as defined in the Rental Purchase
26Agreement Act, and provide proof of registration under the

 

 

SB0157 Enrolled- 743 -LRB102 10128 HLH 16591 b

1Rental Purchase Agreement Occupation and Use Tax Act. This
2paragraph is exempt from the provisions of Section 3-90.
3    (39) Tangible personal property purchased by a purchaser
4who is exempt from the tax imposed by this Act by operation of
5federal law. This paragraph is exempt from the provisions of
6Section 3-90.
7    (40) Qualified tangible personal property used in the
8construction or operation of a data center that has been
9granted a certificate of exemption by the Department of
10Commerce and Economic Opportunity, whether that tangible
11personal property is purchased by the owner, operator, or
12tenant of the data center or by a contractor or subcontractor
13of the owner, operator, or tenant. Data centers that would
14have qualified for a certificate of exemption prior to January
151, 2020 had Public Act 101-31 been in effect may apply for and
16obtain an exemption for subsequent purchases of computer
17equipment or enabling software purchased or leased to upgrade,
18supplement, or replace computer equipment or enabling software
19purchased or leased in the original investment that would have
20qualified.
21    The Department of Commerce and Economic Opportunity shall
22grant a certificate of exemption under this item (40) to
23qualified data centers as defined by Section 605-1025 of the
24Department of Commerce and Economic Opportunity Law of the
25Civil Administrative Code of Illinois.
26    For the purposes of this item (40):

 

 

SB0157 Enrolled- 744 -LRB102 10128 HLH 16591 b

1        "Data center" means a building or a series of
2    buildings rehabilitated or constructed to house working
3    servers in one physical location or multiple sites within
4    the State of Illinois.
5        "Qualified tangible personal property" means:
6    electrical systems and equipment; climate control and
7    chilling equipment and systems; mechanical systems and
8    equipment; monitoring and secure systems; emergency
9    generators; hardware; computers; servers; data storage
10    devices; network connectivity equipment; racks; cabinets;
11    telecommunications cabling infrastructure; raised floor
12    systems; peripheral components or systems; software;
13    mechanical, electrical, or plumbing systems; battery
14    systems; cooling systems and towers; temperature control
15    systems; other cabling; and other data center
16    infrastructure equipment and systems necessary to operate
17    qualified tangible personal property, including fixtures;
18    and component parts of any of the foregoing, including
19    installation, maintenance, repair, refurbishment, and
20    replacement of qualified tangible personal property to
21    generate, transform, transmit, distribute, or manage
22    electricity necessary to operate qualified tangible
23    personal property; and all other tangible personal
24    property that is essential to the operations of a computer
25    data center. The term "qualified tangible personal
26    property" also includes building materials physically

 

 

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1    incorporated in to the qualifying data center. To document
2    the exemption allowed under this Section, the retailer
3    must obtain from the purchaser a copy of the certificate
4    of eligibility issued by the Department of Commerce and
5    Economic Opportunity.
6    This item (40) is exempt from the provisions of Section
73-90.
8(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
9101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff.
106-17-21.)
 
11    Section 75-10. The Service Use Tax Act is amended by
12changing Section 3-5 as follows:
 
13    (35 ILCS 110/3-5)
14    Sec. 3-5. Exemptions. Use of the following tangible
15personal property is exempt from the tax imposed by this Act:
16    (1) Personal property purchased from a corporation,
17society, association, foundation, institution, or
18organization, other than a limited liability company, that is
19organized and operated as a not-for-profit service enterprise
20for the benefit of persons 65 years of age or older if the
21personal property was not purchased by the enterprise for the
22purpose of resale by the enterprise.
23    (2) Personal property purchased by a non-profit Illinois
24county fair association for use in conducting, operating, or

 

 

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1promoting the county fair.
2    (3) Personal property purchased by a not-for-profit arts
3or cultural organization that establishes, by proof required
4by the Department by rule, that it has received an exemption
5under Section 501(c)(3) of the Internal Revenue Code and that
6is organized and operated primarily for the presentation or
7support of arts or cultural programming, activities, or
8services. These organizations include, but are not limited to,
9music and dramatic arts organizations such as symphony
10orchestras and theatrical groups, arts and cultural service
11organizations, local arts councils, visual arts organizations,
12and media arts organizations. On and after July 1, 2001 (the
13effective date of Public Act 92-35), however, an entity
14otherwise eligible for this exemption shall not make tax-free
15purchases unless it has an active identification number issued
16by the Department.
17    (4) Legal tender, currency, medallions, or gold or silver
18coinage issued by the State of Illinois, the government of the
19United States of America, or the government of any foreign
20country, and bullion.
21    (5) Until July 1, 2003 and beginning again on September 1,
222004 through August 30, 2014, graphic arts machinery and
23equipment, including repair and replacement parts, both new
24and used, and including that manufactured on special order or
25purchased for lease, certified by the purchaser to be used
26primarily for graphic arts production. Equipment includes

 

 

SB0157 Enrolled- 747 -LRB102 10128 HLH 16591 b

1chemicals or chemicals acting as catalysts but only if the
2chemicals or chemicals acting as catalysts effect a direct and
3immediate change upon a graphic arts product. Beginning on
4July 1, 2017, graphic arts machinery and equipment is included
5in the manufacturing and assembling machinery and equipment
6exemption under Section 2 of this Act.
7    (6) Personal property purchased from a teacher-sponsored
8student organization affiliated with an elementary or
9secondary school located in Illinois.
10    (7) Farm machinery and equipment, both new and used,
11including that manufactured on special order, certified by the
12purchaser to be used primarily for production agriculture or
13State or federal agricultural programs, including individual
14replacement parts for the machinery and equipment, including
15machinery and equipment purchased for lease, and including
16implements of husbandry defined in Section 1-130 of the
17Illinois Vehicle Code, farm machinery and agricultural
18chemical and fertilizer spreaders, and nurse wagons required
19to be registered under Section 3-809 of the Illinois Vehicle
20Code, but excluding other motor vehicles required to be
21registered under the Illinois Vehicle Code. Horticultural
22polyhouses or hoop houses used for propagating, growing, or
23overwintering plants shall be considered farm machinery and
24equipment under this item (7). Agricultural chemical tender
25tanks and dry boxes shall include units sold separately from a
26motor vehicle required to be licensed and units sold mounted

 

 

SB0157 Enrolled- 748 -LRB102 10128 HLH 16591 b

1on a motor vehicle required to be licensed if the selling price
2of the tender is separately stated.
3    Farm machinery and equipment shall include precision
4farming equipment that is installed or purchased to be
5installed on farm machinery and equipment including, but not
6limited to, tractors, harvesters, sprayers, planters, seeders,
7or spreaders. Precision farming equipment includes, but is not
8limited to, soil testing sensors, computers, monitors,
9software, global positioning and mapping systems, and other
10such equipment.
11    Farm machinery and equipment also includes computers,
12sensors, software, and related equipment used primarily in the
13computer-assisted operation of production agriculture
14facilities, equipment, and activities such as, but not limited
15to, the collection, monitoring, and correlation of animal and
16crop data for the purpose of formulating animal diets and
17agricultural chemicals. This item (7) is exempt from the
18provisions of Section 3-75.
19    (8) Until June 30, 2013, fuel and petroleum products sold
20to or used by an air common carrier, certified by the carrier
21to be used for consumption, shipment, or storage in the
22conduct of its business as an air common carrier, for a flight
23destined for or returning from a location or locations outside
24the United States without regard to previous or subsequent
25domestic stopovers.
26    Beginning July 1, 2013, fuel and petroleum products sold

 

 

SB0157 Enrolled- 749 -LRB102 10128 HLH 16591 b

1to or used by an air carrier, certified by the carrier to be
2used for consumption, shipment, or storage in the conduct of
3its business as an air common carrier, for a flight that (i) is
4engaged in foreign trade or is engaged in trade between the
5United States and any of its possessions and (ii) transports
6at least one individual or package for hire from the city of
7origination to the city of final destination on the same
8aircraft, without regard to a change in the flight number of
9that aircraft.
10    (9) Proceeds of mandatory service charges separately
11stated on customers' bills for the purchase and consumption of
12food and beverages acquired as an incident to the purchase of a
13service from a serviceman, to the extent that the proceeds of
14the service charge are in fact turned over as tips or as a
15substitute for tips to the employees who participate directly
16in preparing, serving, hosting or cleaning up the food or
17beverage function with respect to which the service charge is
18imposed.
19    (10) Until July 1, 2003, oil field exploration, drilling,
20and production equipment, including (i) rigs and parts of
21rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
22pipe and tubular goods, including casing and drill strings,
23(iii) pumps and pump-jack units, (iv) storage tanks and flow
24lines, (v) any individual replacement part for oil field
25exploration, drilling, and production equipment, and (vi)
26machinery and equipment purchased for lease; but excluding

 

 

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1motor vehicles required to be registered under the Illinois
2Vehicle Code.
3    (11) Proceeds from the sale of photoprocessing machinery
4and equipment, including repair and replacement parts, both
5new and used, including that manufactured on special order,
6certified by the purchaser to be used primarily for
7photoprocessing, and including photoprocessing machinery and
8equipment purchased for lease.
9    (12) Until July 1, 2028 July 1, 2023, coal and aggregate
10exploration, mining, off-highway hauling, processing,
11maintenance, and reclamation equipment, including replacement
12parts and equipment, and including equipment purchased for
13lease, but excluding motor vehicles required to be registered
14under the Illinois Vehicle Code. The changes made to this
15Section by Public Act 97-767 apply on and after July 1, 2003,
16but no claim for credit or refund is allowed on or after August
1716, 2013 (the effective date of Public Act 98-456) for such
18taxes paid during the period beginning July 1, 2003 and ending
19on August 16, 2013 (the effective date of Public Act 98-456).
20    (13) Semen used for artificial insemination of livestock
21for direct agricultural production.
22    (14) Horses, or interests in horses, registered with and
23meeting the requirements of any of the Arabian Horse Club
24Registry of America, Appaloosa Horse Club, American Quarter
25Horse Association, United States Trotting Association, or
26Jockey Club, as appropriate, used for purposes of breeding or

 

 

SB0157 Enrolled- 751 -LRB102 10128 HLH 16591 b

1racing for prizes. This item (14) is exempt from the
2provisions of Section 3-75, and the exemption provided for
3under this item (14) applies for all periods beginning May 30,
41995, but no claim for credit or refund is allowed on or after
5January 1, 2008 (the effective date of Public Act 95-88) for
6such taxes paid during the period beginning May 30, 2000 and
7ending on January 1, 2008 (the effective date of Public Act
895-88).
9    (15) Computers and communications equipment utilized for
10any hospital purpose and equipment used in the diagnosis,
11analysis, or treatment of hospital patients purchased by a
12lessor who leases the equipment, under a lease of one year or
13longer executed or in effect at the time the lessor would
14otherwise be subject to the tax imposed by this Act, to a
15hospital that has been issued an active tax exemption
16identification number by the Department under Section 1g of
17the Retailers' Occupation Tax Act. If the equipment is leased
18in a manner that does not qualify for this exemption or is used
19in any other non-exempt manner, the lessor shall be liable for
20the tax imposed under this Act or the Use Tax Act, as the case
21may be, based on the fair market value of the property at the
22time the non-qualifying use occurs. No lessor shall collect or
23attempt to collect an amount (however designated) that
24purports to reimburse that lessor for the tax imposed by this
25Act or the Use Tax Act, as the case may be, if the tax has not
26been paid by the lessor. If a lessor improperly collects any

 

 

SB0157 Enrolled- 752 -LRB102 10128 HLH 16591 b

1such amount from the lessee, the lessee shall have a legal
2right to claim a refund of that amount from the lessor. If,
3however, that amount is not refunded to the lessee for any
4reason, the lessor is liable to pay that amount to the
5Department.
6    (16) Personal property purchased by a lessor who leases
7the property, under a lease of one year or longer executed or
8in effect at the time the lessor would otherwise be subject to
9the tax imposed by this Act, to a governmental body that has
10been issued an active tax exemption identification number by
11the Department under Section 1g of the Retailers' Occupation
12Tax Act. If the property is leased in a manner that does not
13qualify for this exemption or is used in any other non-exempt
14manner, the lessor shall be liable for the tax imposed under
15this Act or the Use Tax Act, as the case may be, based on the
16fair market value of the property at the time the
17non-qualifying use occurs. No lessor shall collect or attempt
18to collect an amount (however designated) that purports to
19reimburse that lessor for the tax imposed by this Act or the
20Use Tax Act, as the case may be, if the tax has not been paid
21by the lessor. If a lessor improperly collects any such amount
22from the lessee, the lessee shall have a legal right to claim a
23refund of that amount from the lessor. If, however, that
24amount is not refunded to the lessee for any reason, the lessor
25is liable to pay that amount to the Department.
26    (17) Beginning with taxable years ending on or after

 

 

SB0157 Enrolled- 753 -LRB102 10128 HLH 16591 b

1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is donated
3for disaster relief to be used in a State or federally declared
4disaster area in Illinois or bordering Illinois by a
5manufacturer or retailer that is registered in this State to a
6corporation, society, association, foundation, or institution
7that has been issued a sales tax exemption identification
8number by the Department that assists victims of the disaster
9who reside within the declared disaster area.
10    (18) Beginning with taxable years ending on or after
11December 31, 1995 and ending with taxable years ending on or
12before December 31, 2004, personal property that is used in
13the performance of infrastructure repairs in this State,
14including but not limited to municipal roads and streets,
15access roads, bridges, sidewalks, waste disposal systems,
16water and sewer line extensions, water distribution and
17purification facilities, storm water drainage and retention
18facilities, and sewage treatment facilities, resulting from a
19State or federally declared disaster in Illinois or bordering
20Illinois when such repairs are initiated on facilities located
21in the declared disaster area within 6 months after the
22disaster.
23    (19) Beginning July 1, 1999, game or game birds purchased
24at a "game breeding and hunting preserve area" as that term is
25used in the Wildlife Code. This paragraph is exempt from the
26provisions of Section 3-75.

 

 

SB0157 Enrolled- 754 -LRB102 10128 HLH 16591 b

1    (20) A motor vehicle, as that term is defined in Section
21-146 of the Illinois Vehicle Code, that is donated to a
3corporation, limited liability company, society, association,
4foundation, or institution that is determined by the
5Department to be organized and operated exclusively for
6educational purposes. For purposes of this exemption, "a
7corporation, limited liability company, society, association,
8foundation, or institution organized and operated exclusively
9for educational purposes" means all tax-supported public
10schools, private schools that offer systematic instruction in
11useful branches of learning by methods common to public
12schools and that compare favorably in their scope and
13intensity with the course of study presented in tax-supported
14schools, and vocational or technical schools or institutes
15organized and operated exclusively to provide a course of
16study of not less than 6 weeks duration and designed to prepare
17individuals to follow a trade or to pursue a manual,
18technical, mechanical, industrial, business, or commercial
19occupation.
20    (21) Beginning January 1, 2000, personal property,
21including food, purchased through fundraising events for the
22benefit of a public or private elementary or secondary school,
23a group of those schools, or one or more school districts if
24the events are sponsored by an entity recognized by the school
25district that consists primarily of volunteers and includes
26parents and teachers of the school children. This paragraph

 

 

SB0157 Enrolled- 755 -LRB102 10128 HLH 16591 b

1does not apply to fundraising events (i) for the benefit of
2private home instruction or (ii) for which the fundraising
3entity purchases the personal property sold at the events from
4another individual or entity that sold the property for the
5purpose of resale by the fundraising entity and that profits
6from the sale to the fundraising entity. This paragraph is
7exempt from the provisions of Section 3-75.
8    (22) Beginning January 1, 2000 and through December 31,
92001, new or used automatic vending machines that prepare and
10serve hot food and beverages, including coffee, soup, and
11other items, and replacement parts for these machines.
12Beginning January 1, 2002 and through June 30, 2003, machines
13and parts for machines used in commercial, coin-operated
14amusement and vending business if a use or occupation tax is
15paid on the gross receipts derived from the use of the
16commercial, coin-operated amusement and vending machines. This
17paragraph is exempt from the provisions of Section 3-75.
18    (23) Beginning August 23, 2001 and through June 30, 2016,
19food for human consumption that is to be consumed off the
20premises where it is sold (other than alcoholic beverages,
21soft drinks, and food that has been prepared for immediate
22consumption) and prescription and nonprescription medicines,
23drugs, medical appliances, and insulin, urine testing
24materials, syringes, and needles used by diabetics, for human
25use, when purchased for use by a person receiving medical
26assistance under Article V of the Illinois Public Aid Code who

 

 

SB0157 Enrolled- 756 -LRB102 10128 HLH 16591 b

1resides in a licensed long-term care facility, as defined in
2the Nursing Home Care Act, or in a licensed facility as defined
3in the ID/DD Community Care Act, the MC/DD Act, or the
4Specialized Mental Health Rehabilitation Act of 2013.
5    (24) Beginning on August 2, 2001 (the effective date of
6Public Act 92-227), computers and communications equipment
7utilized for any hospital purpose and equipment used in the
8diagnosis, analysis, or treatment of hospital patients
9purchased by a lessor who leases the equipment, under a lease
10of one year or longer executed or in effect at the time the
11lessor would otherwise be subject to the tax imposed by this
12Act, to a hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of
14the Retailers' Occupation Tax Act. If the equipment is leased
15in a manner that does not qualify for this exemption or is used
16in any other nonexempt manner, the lessor shall be liable for
17the tax imposed under this Act or the Use Tax Act, as the case
18may be, based on the fair market value of the property at the
19time the nonqualifying use occurs. No lessor shall collect or
20attempt to collect an amount (however designated) that
21purports to reimburse that lessor for the tax imposed by this
22Act or the Use Tax Act, as the case may be, if the tax has not
23been paid by the lessor. If a lessor improperly collects any
24such amount from the lessee, the lessee shall have a legal
25right to claim a refund of that amount from the lessor. If,
26however, that amount is not refunded to the lessee for any

 

 

SB0157 Enrolled- 757 -LRB102 10128 HLH 16591 b

1reason, the lessor is liable to pay that amount to the
2Department. This paragraph is exempt from the provisions of
3Section 3-75.
4    (25) Beginning on August 2, 2001 (the effective date of
5Public Act 92-227), personal property purchased by a lessor
6who leases the property, under a lease of one year or longer
7executed or in effect at the time the lessor would otherwise be
8subject to the tax imposed by this Act, to a governmental body
9that has been issued an active tax exemption identification
10number by the Department under Section 1g of the Retailers'
11Occupation Tax Act. If the property is leased in a manner that
12does not qualify for this exemption or is used in any other
13nonexempt manner, the lessor shall be liable for the tax
14imposed under this Act or the Use Tax Act, as the case may be,
15based on the fair market value of the property at the time the
16nonqualifying use occurs. No lessor shall collect or attempt
17to collect an amount (however designated) that purports to
18reimburse that lessor for the tax imposed by this Act or the
19Use Tax Act, as the case may be, if the tax has not been paid
20by the lessor. If a lessor improperly collects any such amount
21from the lessee, the lessee shall have a legal right to claim a
22refund of that amount from the lessor. If, however, that
23amount is not refunded to the lessee for any reason, the lessor
24is liable to pay that amount to the Department. This paragraph
25is exempt from the provisions of Section 3-75.
26    (26) Beginning January 1, 2008, tangible personal property

 

 

SB0157 Enrolled- 758 -LRB102 10128 HLH 16591 b

1used in the construction or maintenance of a community water
2supply, as defined under Section 3.145 of the Environmental
3Protection Act, that is operated by a not-for-profit
4corporation that holds a valid water supply permit issued
5under Title IV of the Environmental Protection Act. This
6paragraph is exempt from the provisions of Section 3-75.
7    (27) Beginning January 1, 2010 and continuing through
8December 31, 2024, materials, parts, equipment, components,
9and furnishings incorporated into or upon an aircraft as part
10of the modification, refurbishment, completion, replacement,
11repair, or maintenance of the aircraft. This exemption
12includes consumable supplies used in the modification,
13refurbishment, completion, replacement, repair, and
14maintenance of aircraft, but excludes any materials, parts,
15equipment, components, and consumable supplies used in the
16modification, replacement, repair, and maintenance of aircraft
17engines or power plants, whether such engines or power plants
18are installed or uninstalled upon any such aircraft.
19"Consumable supplies" include, but are not limited to,
20adhesive, tape, sandpaper, general purpose lubricants,
21cleaning solution, latex gloves, and protective films. This
22exemption applies only to the use of qualifying tangible
23personal property transferred incident to the modification,
24refurbishment, completion, replacement, repair, or maintenance
25of aircraft by persons who (i) hold an Air Agency Certificate
26and are empowered to operate an approved repair station by the

 

 

SB0157 Enrolled- 759 -LRB102 10128 HLH 16591 b

1Federal Aviation Administration, (ii) have a Class IV Rating,
2and (iii) conduct operations in accordance with Part 145 of
3the Federal Aviation Regulations. The exemption does not
4include aircraft operated by a commercial air carrier
5providing scheduled passenger air service pursuant to
6authority issued under Part 121 or Part 129 of the Federal
7Aviation Regulations. The changes made to this paragraph (27)
8by Public Act 98-534 are declarative of existing law. It is the
9intent of the General Assembly that the exemption under this
10paragraph (27) applies continuously from January 1, 2010
11through December 31, 2024; however, no claim for credit or
12refund is allowed for taxes paid as a result of the
13disallowance of this exemption on or after January 1, 2015 and
14prior to the effective date of this amendatory Act of the 101st
15General Assembly.
16    (28) Tangible personal property purchased by a
17public-facilities corporation, as described in Section
1811-65-10 of the Illinois Municipal Code, for purposes of
19constructing or furnishing a municipal convention hall, but
20only if the legal title to the municipal convention hall is
21transferred to the municipality without any further
22consideration by or on behalf of the municipality at the time
23of the completion of the municipal convention hall or upon the
24retirement or redemption of any bonds or other debt
25instruments issued by the public-facilities corporation in
26connection with the development of the municipal convention

 

 

SB0157 Enrolled- 760 -LRB102 10128 HLH 16591 b

1hall. This exemption includes existing public-facilities
2corporations as provided in Section 11-65-25 of the Illinois
3Municipal Code. This paragraph is exempt from the provisions
4of Section 3-75.
5    (29) Beginning January 1, 2017 and through December 31,
62026, menstrual pads, tampons, and menstrual cups.
7    (30) Tangible personal property transferred to a purchaser
8who is exempt from the tax imposed by this Act by operation of
9federal law. This paragraph is exempt from the provisions of
10Section 3-75.
11    (31) Qualified tangible personal property used in the
12construction or operation of a data center that has been
13granted a certificate of exemption by the Department of
14Commerce and Economic Opportunity, whether that tangible
15personal property is purchased by the owner, operator, or
16tenant of the data center or by a contractor or subcontractor
17of the owner, operator, or tenant. Data centers that would
18have qualified for a certificate of exemption prior to January
191, 2020 had this amendatory Act of the 101st General Assembly
20been in effect, may apply for and obtain an exemption for
21subsequent purchases of computer equipment or enabling
22software purchased or leased to upgrade, supplement, or
23replace computer equipment or enabling software purchased or
24leased in the original investment that would have qualified.
25    The Department of Commerce and Economic Opportunity shall
26grant a certificate of exemption under this item (31) to

 

 

SB0157 Enrolled- 761 -LRB102 10128 HLH 16591 b

1qualified data centers as defined by Section 605-1025 of the
2Department of Commerce and Economic Opportunity Law of the
3Civil Administrative Code of Illinois.
4    For the purposes of this item (31):
5        "Data center" means a building or a series of
6    buildings rehabilitated or constructed to house working
7    servers in one physical location or multiple sites within
8    the State of Illinois.
9        "Qualified tangible personal property" means:
10    electrical systems and equipment; climate control and
11    chilling equipment and systems; mechanical systems and
12    equipment; monitoring and secure systems; emergency
13    generators; hardware; computers; servers; data storage
14    devices; network connectivity equipment; racks; cabinets;
15    telecommunications cabling infrastructure; raised floor
16    systems; peripheral components or systems; software;
17    mechanical, electrical, or plumbing systems; battery
18    systems; cooling systems and towers; temperature control
19    systems; other cabling; and other data center
20    infrastructure equipment and systems necessary to operate
21    qualified tangible personal property, including fixtures;
22    and component parts of any of the foregoing, including
23    installation, maintenance, repair, refurbishment, and
24    replacement of qualified tangible personal property to
25    generate, transform, transmit, distribute, or manage
26    electricity necessary to operate qualified tangible

 

 

SB0157 Enrolled- 762 -LRB102 10128 HLH 16591 b

1    personal property; and all other tangible personal
2    property that is essential to the operations of a computer
3    data center. The term "qualified tangible personal
4    property" also includes building materials physically
5    incorporated in to the qualifying data center. To document
6    the exemption allowed under this Section, the retailer
7    must obtain from the purchaser a copy of the certificate
8    of eligibility issued by the Department of Commerce and
9    Economic Opportunity.
10    This item (31) is exempt from the provisions of Section
113-75.
12(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
13101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
 
14    Section 75-15. The Service Occupation Tax Act is amended
15by changing Section 3-5 as follows:
 
16    (35 ILCS 115/3-5)
17    Sec. 3-5. Exemptions. The following tangible personal
18property is exempt from the tax imposed by this Act:
19    (1) Personal property sold by a corporation, society,
20association, foundation, institution, or organization, other
21than a limited liability company, that is organized and
22operated as a not-for-profit service enterprise for the
23benefit of persons 65 years of age or older if the personal
24property was not purchased by the enterprise for the purpose

 

 

SB0157 Enrolled- 763 -LRB102 10128 HLH 16591 b

1of resale by the enterprise.
2    (2) Personal property purchased by a not-for-profit
3Illinois county fair association for use in conducting,
4operating, or promoting the county fair.
5    (3) Personal property purchased by any not-for-profit arts
6or cultural organization that establishes, by proof required
7by the Department by rule, that it has received an exemption
8under Section 501(c)(3) of the Internal Revenue Code and that
9is organized and operated primarily for the presentation or
10support of arts or cultural programming, activities, or
11services. These organizations include, but are not limited to,
12music and dramatic arts organizations such as symphony
13orchestras and theatrical groups, arts and cultural service
14organizations, local arts councils, visual arts organizations,
15and media arts organizations. On and after July 1, 2001 (the
16effective date of Public Act 92-35), however, an entity
17otherwise eligible for this exemption shall not make tax-free
18purchases unless it has an active identification number issued
19by the Department.
20    (4) Legal tender, currency, medallions, or gold or silver
21coinage issued by the State of Illinois, the government of the
22United States of America, or the government of any foreign
23country, and bullion.
24    (5) Until July 1, 2003 and beginning again on September 1,
252004 through August 30, 2014, graphic arts machinery and
26equipment, including repair and replacement parts, both new

 

 

SB0157 Enrolled- 764 -LRB102 10128 HLH 16591 b

1and used, and including that manufactured on special order or
2purchased for lease, certified by the purchaser to be used
3primarily for graphic arts production. Equipment includes
4chemicals or chemicals acting as catalysts but only if the
5chemicals or chemicals acting as catalysts effect a direct and
6immediate change upon a graphic arts product. Beginning on
7July 1, 2017, graphic arts machinery and equipment is included
8in the manufacturing and assembling machinery and equipment
9exemption under Section 2 of this Act.
10    (6) Personal property sold by a teacher-sponsored student
11organization affiliated with an elementary or secondary school
12located in Illinois.
13    (7) Farm machinery and equipment, both new and used,
14including that manufactured on special order, certified by the
15purchaser to be used primarily for production agriculture or
16State or federal agricultural programs, including individual
17replacement parts for the machinery and equipment, including
18machinery and equipment purchased for lease, and including
19implements of husbandry defined in Section 1-130 of the
20Illinois Vehicle Code, farm machinery and agricultural
21chemical and fertilizer spreaders, and nurse wagons required
22to be registered under Section 3-809 of the Illinois Vehicle
23Code, but excluding other motor vehicles required to be
24registered under the Illinois Vehicle Code. Horticultural
25polyhouses or hoop houses used for propagating, growing, or
26overwintering plants shall be considered farm machinery and

 

 

SB0157 Enrolled- 765 -LRB102 10128 HLH 16591 b

1equipment under this item (7). Agricultural chemical tender
2tanks and dry boxes shall include units sold separately from a
3motor vehicle required to be licensed and units sold mounted
4on a motor vehicle required to be licensed if the selling price
5of the tender is separately stated.
6    Farm machinery and equipment shall include precision
7farming equipment that is installed or purchased to be
8installed on farm machinery and equipment including, but not
9limited to, tractors, harvesters, sprayers, planters, seeders,
10or spreaders. Precision farming equipment includes, but is not
11limited to, soil testing sensors, computers, monitors,
12software, global positioning and mapping systems, and other
13such equipment.
14    Farm machinery and equipment also includes computers,
15sensors, software, and related equipment used primarily in the
16computer-assisted operation of production agriculture
17facilities, equipment, and activities such as, but not limited
18to, the collection, monitoring, and correlation of animal and
19crop data for the purpose of formulating animal diets and
20agricultural chemicals. This item (7) is exempt from the
21provisions of Section 3-55.
22    (8) Until June 30, 2013, fuel and petroleum products sold
23to or used by an air common carrier, certified by the carrier
24to be used for consumption, shipment, or storage in the
25conduct of its business as an air common carrier, for a flight
26destined for or returning from a location or locations outside

 

 

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1the United States without regard to previous or subsequent
2domestic stopovers.
3    Beginning July 1, 2013, fuel and petroleum products sold
4to or used by an air carrier, certified by the carrier to be
5used for consumption, shipment, or storage in the conduct of
6its business as an air common carrier, for a flight that (i) is
7engaged in foreign trade or is engaged in trade between the
8United States and any of its possessions and (ii) transports
9at least one individual or package for hire from the city of
10origination to the city of final destination on the same
11aircraft, without regard to a change in the flight number of
12that aircraft.
13    (9) Proceeds of mandatory service charges separately
14stated on customers' bills for the purchase and consumption of
15food and beverages, to the extent that the proceeds of the
16service charge are in fact turned over as tips or as a
17substitute for tips to the employees who participate directly
18in preparing, serving, hosting or cleaning up the food or
19beverage function with respect to which the service charge is
20imposed.
21    (10) Until July 1, 2003, oil field exploration, drilling,
22and production equipment, including (i) rigs and parts of
23rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
24pipe and tubular goods, including casing and drill strings,
25(iii) pumps and pump-jack units, (iv) storage tanks and flow
26lines, (v) any individual replacement part for oil field

 

 

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1exploration, drilling, and production equipment, and (vi)
2machinery and equipment purchased for lease; but excluding
3motor vehicles required to be registered under the Illinois
4Vehicle Code.
5    (11) Photoprocessing machinery and equipment, including
6repair and replacement parts, both new and used, including
7that manufactured on special order, certified by the purchaser
8to be used primarily for photoprocessing, and including
9photoprocessing machinery and equipment purchased for lease.
10    (12) Until July 1, 2028 July 1, 2023, coal and aggregate
11exploration, mining, off-highway hauling, processing,
12maintenance, and reclamation equipment, including replacement
13parts and equipment, and including equipment purchased for
14lease, but excluding motor vehicles required to be registered
15under the Illinois Vehicle Code. The changes made to this
16Section by Public Act 97-767 apply on and after July 1, 2003,
17but no claim for credit or refund is allowed on or after August
1816, 2013 (the effective date of Public Act 98-456) for such
19taxes paid during the period beginning July 1, 2003 and ending
20on August 16, 2013 (the effective date of Public Act 98-456).
21    (13) Beginning January 1, 1992 and through June 30, 2016,
22food for human consumption that is to be consumed off the
23premises where it is sold (other than alcoholic beverages,
24soft drinks and food that has been prepared for immediate
25consumption) and prescription and non-prescription medicines,
26drugs, medical appliances, and insulin, urine testing

 

 

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1materials, syringes, and needles used by diabetics, for human
2use, when purchased for use by a person receiving medical
3assistance under Article V of the Illinois Public Aid Code who
4resides in a licensed long-term care facility, as defined in
5the Nursing Home Care Act, or in a licensed facility as defined
6in the ID/DD Community Care Act, the MC/DD Act, or the
7Specialized Mental Health Rehabilitation Act of 2013.
8    (14) Semen used for artificial insemination of livestock
9for direct agricultural production.
10    (15) Horses, or interests in horses, registered with and
11meeting the requirements of any of the Arabian Horse Club
12Registry of America, Appaloosa Horse Club, American Quarter
13Horse Association, United States Trotting Association, or
14Jockey Club, as appropriate, used for purposes of breeding or
15racing for prizes. This item (15) is exempt from the
16provisions of Section 3-55, and the exemption provided for
17under this item (15) applies for all periods beginning May 30,
181995, but no claim for credit or refund is allowed on or after
19January 1, 2008 (the effective date of Public Act 95-88) for
20such taxes paid during the period beginning May 30, 2000 and
21ending on January 1, 2008 (the effective date of Public Act
2295-88).
23    (16) Computers and communications equipment utilized for
24any hospital purpose and equipment used in the diagnosis,
25analysis, or treatment of hospital patients sold to a lessor
26who leases the equipment, under a lease of one year or longer

 

 

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1executed or in effect at the time of the purchase, to a
2hospital that has been issued an active tax exemption
3identification number by the Department under Section 1g of
4the Retailers' Occupation Tax Act.
5    (17) Personal property sold to a lessor who leases the
6property, under a lease of one year or longer executed or in
7effect at the time of the purchase, to a governmental body that
8has been issued an active tax exemption identification number
9by the Department under Section 1g of the Retailers'
10Occupation Tax Act.
11    (18) Beginning with taxable years ending on or after
12December 31, 1995 and ending with taxable years ending on or
13before December 31, 2004, personal property that is donated
14for disaster relief to be used in a State or federally declared
15disaster area in Illinois or bordering Illinois by a
16manufacturer or retailer that is registered in this State to a
17corporation, society, association, foundation, or institution
18that has been issued a sales tax exemption identification
19number by the Department that assists victims of the disaster
20who reside within the declared disaster area.
21    (19) Beginning with taxable years ending on or after
22December 31, 1995 and ending with taxable years ending on or
23before December 31, 2004, personal property that is used in
24the performance of infrastructure repairs in this State,
25including but not limited to municipal roads and streets,
26access roads, bridges, sidewalks, waste disposal systems,

 

 

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1water and sewer line extensions, water distribution and
2purification facilities, storm water drainage and retention
3facilities, and sewage treatment facilities, resulting from a
4State or federally declared disaster in Illinois or bordering
5Illinois when such repairs are initiated on facilities located
6in the declared disaster area within 6 months after the
7disaster.
8    (20) Beginning July 1, 1999, game or game birds sold at a
9"game breeding and hunting preserve area" as that term is used
10in the Wildlife Code. This paragraph is exempt from the
11provisions of Section 3-55.
12    (21) A motor vehicle, as that term is defined in Section
131-146 of the Illinois Vehicle Code, that is donated to a
14corporation, limited liability company, society, association,
15foundation, or institution that is determined by the
16Department to be organized and operated exclusively for
17educational purposes. For purposes of this exemption, "a
18corporation, limited liability company, society, association,
19foundation, or institution organized and operated exclusively
20for educational purposes" means all tax-supported public
21schools, private schools that offer systematic instruction in
22useful branches of learning by methods common to public
23schools and that compare favorably in their scope and
24intensity with the course of study presented in tax-supported
25schools, and vocational or technical schools or institutes
26organized and operated exclusively to provide a course of

 

 

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1study of not less than 6 weeks duration and designed to prepare
2individuals to follow a trade or to pursue a manual,
3technical, mechanical, industrial, business, or commercial
4occupation.
5    (22) Beginning January 1, 2000, personal property,
6including food, purchased through fundraising events for the
7benefit of a public or private elementary or secondary school,
8a group of those schools, or one or more school districts if
9the events are sponsored by an entity recognized by the school
10district that consists primarily of volunteers and includes
11parents and teachers of the school children. This paragraph
12does not apply to fundraising events (i) for the benefit of
13private home instruction or (ii) for which the fundraising
14entity purchases the personal property sold at the events from
15another individual or entity that sold the property for the
16purpose of resale by the fundraising entity and that profits
17from the sale to the fundraising entity. This paragraph is
18exempt from the provisions of Section 3-55.
19    (23) Beginning January 1, 2000 and through December 31,
202001, new or used automatic vending machines that prepare and
21serve hot food and beverages, including coffee, soup, and
22other items, and replacement parts for these machines.
23Beginning January 1, 2002 and through June 30, 2003, machines
24and parts for machines used in commercial, coin-operated
25amusement and vending business if a use or occupation tax is
26paid on the gross receipts derived from the use of the

 

 

SB0157 Enrolled- 772 -LRB102 10128 HLH 16591 b

1commercial, coin-operated amusement and vending machines. This
2paragraph is exempt from the provisions of Section 3-55.
3    (24) Beginning on August 2, 2001 (the effective date of
4Public Act 92-227), computers and communications equipment
5utilized for any hospital purpose and equipment used in the
6diagnosis, analysis, or treatment of hospital patients sold to
7a lessor who leases the equipment, under a lease of one year or
8longer executed or in effect at the time of the purchase, to a
9hospital that has been issued an active tax exemption
10identification number by the Department under Section 1g of
11the Retailers' Occupation Tax Act. This paragraph is exempt
12from the provisions of Section 3-55.
13    (25) Beginning on August 2, 2001 (the effective date of
14Public Act 92-227), personal property sold to a lessor who
15leases the property, under a lease of one year or longer
16executed or in effect at the time of the purchase, to a
17governmental body that has been issued an active tax exemption
18identification number by the Department under Section 1g of
19the Retailers' Occupation Tax Act. This paragraph is exempt
20from the provisions of Section 3-55.
21    (26) Beginning on January 1, 2002 and through June 30,
222016, tangible personal property purchased from an Illinois
23retailer by a taxpayer engaged in centralized purchasing
24activities in Illinois who will, upon receipt of the property
25in Illinois, temporarily store the property in Illinois (i)
26for the purpose of subsequently transporting it outside this

 

 

SB0157 Enrolled- 773 -LRB102 10128 HLH 16591 b

1State for use or consumption thereafter solely outside this
2State or (ii) for the purpose of being processed, fabricated,
3or manufactured into, attached to, or incorporated into other
4tangible personal property to be transported outside this
5State and thereafter used or consumed solely outside this
6State. The Director of Revenue shall, pursuant to rules
7adopted in accordance with the Illinois Administrative
8Procedure Act, issue a permit to any taxpayer in good standing
9with the Department who is eligible for the exemption under
10this paragraph (26). The permit issued under this paragraph
11(26) shall authorize the holder, to the extent and in the
12manner specified in the rules adopted under this Act, to
13purchase tangible personal property from a retailer exempt
14from the taxes imposed by this Act. Taxpayers shall maintain
15all necessary books and records to substantiate the use and
16consumption of all such tangible personal property outside of
17the State of Illinois.
18    (27) Beginning January 1, 2008, tangible personal property
19used in the construction or maintenance of a community water
20supply, as defined under Section 3.145 of the Environmental
21Protection Act, that is operated by a not-for-profit
22corporation that holds a valid water supply permit issued
23under Title IV of the Environmental Protection Act. This
24paragraph is exempt from the provisions of Section 3-55.
25    (28) Tangible personal property sold to a
26public-facilities corporation, as described in Section

 

 

SB0157 Enrolled- 774 -LRB102 10128 HLH 16591 b

111-65-10 of the Illinois Municipal Code, for purposes of
2constructing or furnishing a municipal convention hall, but
3only if the legal title to the municipal convention hall is
4transferred to the municipality without any further
5consideration by or on behalf of the municipality at the time
6of the completion of the municipal convention hall or upon the
7retirement or redemption of any bonds or other debt
8instruments issued by the public-facilities corporation in
9connection with the development of the municipal convention
10hall. This exemption includes existing public-facilities
11corporations as provided in Section 11-65-25 of the Illinois
12Municipal Code. This paragraph is exempt from the provisions
13of Section 3-55.
14    (29) Beginning January 1, 2010 and continuing through
15December 31, 2024, materials, parts, equipment, components,
16and furnishings incorporated into or upon an aircraft as part
17of the modification, refurbishment, completion, replacement,
18repair, or maintenance of the aircraft. This exemption
19includes consumable supplies used in the modification,
20refurbishment, completion, replacement, repair, and
21maintenance of aircraft, but excludes any materials, parts,
22equipment, components, and consumable supplies used in the
23modification, replacement, repair, and maintenance of aircraft
24engines or power plants, whether such engines or power plants
25are installed or uninstalled upon any such aircraft.
26"Consumable supplies" include, but are not limited to,

 

 

SB0157 Enrolled- 775 -LRB102 10128 HLH 16591 b

1adhesive, tape, sandpaper, general purpose lubricants,
2cleaning solution, latex gloves, and protective films. This
3exemption applies only to the transfer of qualifying tangible
4personal property incident to the modification, refurbishment,
5completion, replacement, repair, or maintenance of an aircraft
6by persons who (i) hold an Air Agency Certificate and are
7empowered to operate an approved repair station by the Federal
8Aviation Administration, (ii) have a Class IV Rating, and
9(iii) conduct operations in accordance with Part 145 of the
10Federal Aviation Regulations. The exemption does not include
11aircraft operated by a commercial air carrier providing
12scheduled passenger air service pursuant to authority issued
13under Part 121 or Part 129 of the Federal Aviation
14Regulations. The changes made to this paragraph (29) by Public
15Act 98-534 are declarative of existing law. It is the intent of
16the General Assembly that the exemption under this paragraph
17(29) applies continuously from January 1, 2010 through
18December 31, 2024; however, no claim for credit or refund is
19allowed for taxes paid as a result of the disallowance of this
20exemption on or after January 1, 2015 and prior to the
21effective date of this amendatory Act of the 101st General
22Assembly.
23    (30) Beginning January 1, 2017 and through December 31,
242026, menstrual pads, tampons, and menstrual cups.
25    (31) Tangible personal property transferred to a purchaser
26who is exempt from tax by operation of federal law. This

 

 

SB0157 Enrolled- 776 -LRB102 10128 HLH 16591 b

1paragraph is exempt from the provisions of Section 3-55.
2    (32) Qualified tangible personal property used in the
3construction or operation of a data center that has been
4granted a certificate of exemption by the Department of
5Commerce and Economic Opportunity, whether that tangible
6personal property is purchased by the owner, operator, or
7tenant of the data center or by a contractor or subcontractor
8of the owner, operator, or tenant. Data centers that would
9have qualified for a certificate of exemption prior to January
101, 2020 had this amendatory Act of the 101st General Assembly
11been in effect, may apply for and obtain an exemption for
12subsequent purchases of computer equipment or enabling
13software purchased or leased to upgrade, supplement, or
14replace computer equipment or enabling software purchased or
15leased in the original investment that would have qualified.
16    The Department of Commerce and Economic Opportunity shall
17grant a certificate of exemption under this item (32) to
18qualified data centers as defined by Section 605-1025 of the
19Department of Commerce and Economic Opportunity Law of the
20Civil Administrative Code of Illinois.
21    For the purposes of this item (32):
22        "Data center" means a building or a series of
23    buildings rehabilitated or constructed to house working
24    servers in one physical location or multiple sites within
25    the State of Illinois.
26        "Qualified tangible personal property" means:

 

 

SB0157 Enrolled- 777 -LRB102 10128 HLH 16591 b

1    electrical systems and equipment; climate control and
2    chilling equipment and systems; mechanical systems and
3    equipment; monitoring and secure systems; emergency
4    generators; hardware; computers; servers; data storage
5    devices; network connectivity equipment; racks; cabinets;
6    telecommunications cabling infrastructure; raised floor
7    systems; peripheral components or systems; software;
8    mechanical, electrical, or plumbing systems; battery
9    systems; cooling systems and towers; temperature control
10    systems; other cabling; and other data center
11    infrastructure equipment and systems necessary to operate
12    qualified tangible personal property, including fixtures;
13    and component parts of any of the foregoing, including
14    installation, maintenance, repair, refurbishment, and
15    replacement of qualified tangible personal property to
16    generate, transform, transmit, distribute, or manage
17    electricity necessary to operate qualified tangible
18    personal property; and all other tangible personal
19    property that is essential to the operations of a computer
20    data center. The term "qualified tangible personal
21    property" also includes building materials physically
22    incorporated in to the qualifying data center. To document
23    the exemption allowed under this Section, the retailer
24    must obtain from the purchaser a copy of the certificate
25    of eligibility issued by the Department of Commerce and
26    Economic Opportunity.

 

 

SB0157 Enrolled- 778 -LRB102 10128 HLH 16591 b

1    This item (32) is exempt from the provisions of Section
23-55.
3(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
4101-629, eff. 2-5-20; 102-16, eff. 6-17-21.)
 
5    Section 75-20. The Retailers' Occupation Tax Act is
6amended by changing Section 2-5 as follows:
 
7    (35 ILCS 120/2-5)
8    Sec. 2-5. Exemptions. Gross receipts from proceeds from
9the sale of the following tangible personal property are
10exempt from the tax imposed by this Act:
11        (1) Farm chemicals.
12        (2) Farm machinery and equipment, both new and used,
13    including that manufactured on special order, certified by
14    the purchaser to be used primarily for production
15    agriculture or State or federal agricultural programs,
16    including individual replacement parts for the machinery
17    and equipment, including machinery and equipment purchased
18    for lease, and including implements of husbandry defined
19    in Section 1-130 of the Illinois Vehicle Code, farm
20    machinery and agricultural chemical and fertilizer
21    spreaders, and nurse wagons required to be registered
22    under Section 3-809 of the Illinois Vehicle Code, but
23    excluding other motor vehicles required to be registered
24    under the Illinois Vehicle Code. Horticultural polyhouses

 

 

SB0157 Enrolled- 779 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 780 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 781 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 782 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 783 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 784 -LRB102 10128 HLH 16591 b

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

 

 

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

 

 

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1    to be registered under the Illinois Vehicle Code.
2        (20) Photoprocessing machinery and equipment,
3    including repair and replacement parts, both new and used,
4    including that manufactured on special order, certified by
5    the purchaser to be used primarily for photoprocessing,
6    and including photoprocessing machinery and equipment
7    purchased for lease.
8        (21) Until July 1, 2028 July 1, 2023, coal and
9    aggregate exploration, mining, off-highway hauling,
10    processing, maintenance, and reclamation equipment,
11    including replacement parts and equipment, and including
12    equipment purchased for lease, but excluding motor
13    vehicles required to be registered under the Illinois
14    Vehicle Code. The changes made to this Section by Public
15    Act 97-767 apply on and after July 1, 2003, but no claim
16    for credit or refund is allowed on or after August 16, 2013
17    (the effective date of Public Act 98-456) for such taxes
18    paid during the period beginning July 1, 2003 and ending
19    on August 16, 2013 (the effective date of Public Act
20    98-456).
21        (22) Until June 30, 2013, fuel and petroleum products
22    sold to or used by an air carrier, certified by the carrier
23    to be used for consumption, shipment, or storage in the
24    conduct of its business as an air common carrier, for a
25    flight destined for or returning from a location or
26    locations outside the United States without regard to

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB0157 Enrolled- 795 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 796 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 797 -LRB102 10128 HLH 16591 b

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

 

 

SB0157 Enrolled- 798 -LRB102 10128 HLH 16591 b

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

 

 

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1    hall or upon the retirement or redemption of any bonds or
2    other debt instruments issued by the public-facilities
3    corporation in connection with the development of the
4    municipal convention hall. This exemption includes
5    existing public-facilities corporations as provided in
6    Section 11-65-25 of the Illinois Municipal Code. This
7    paragraph is exempt from the provisions of Section 2-70.
8        (42) Beginning January 1, 2017 and through December
9    31, 2026, menstrual pads, tampons, and menstrual cups.
10        (43) Merchandise that is subject to the Rental
11    Purchase Agreement Occupation and Use Tax. The purchaser
12    must certify that the item is purchased to be rented
13    subject to a rental purchase agreement, as defined in the
14    Rental Purchase Agreement Act, and provide proof of
15    registration under the Rental Purchase Agreement
16    Occupation and Use Tax Act. This paragraph is exempt from
17    the provisions of Section 2-70.
18        (44) Qualified tangible personal property used in the
19    construction or operation of a data center that has been
20    granted a certificate of exemption by the Department of
21    Commerce and Economic Opportunity, whether that tangible
22    personal property is purchased by the owner, operator, or
23    tenant of the data center or by a contractor or
24    subcontractor of the owner, operator, or tenant. Data
25    centers that would have qualified for a certificate of
26    exemption prior to January 1, 2020 had this amendatory Act

 

 

SB0157 Enrolled- 800 -LRB102 10128 HLH 16591 b

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

 

 

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

 

 

SB0157 Enrolled- 802 -LRB102 10128 HLH 16591 b

1    under Section 2d of the Use Tax Act are exempt from tax
2    under this Act. A marketplace seller claiming this
3    exemption shall maintain books and records demonstrating
4    that the use tax on such sales has been collected and
5    remitted by a marketplace facilitator. Marketplace sellers
6    that have properly remitted tax under this Act on such
7    sales may file a claim for credit as provided in Section 6
8    of this Act. No claim is allowed, however, for such taxes
9    for which a credit or refund has been issued to the
10    marketplace facilitator under the Use Tax Act, or for
11    which the marketplace facilitator has filed a claim for
12    credit or refund under the Use Tax Act.
13(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
14101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff.
158-27-21; revised 11-9-21.)
 
16
ARTICLE 80. STATE FINANCE ACT

 
17    Section 80-5. The State Finance Act is amended by changing
18Section 8g-1 as follows:
 
19    (30 ILCS 105/8g-1)
20    Sec. 8g-1. Fund transfers.
21    (a) (Blank).
22    (b) (Blank).
23    (c) (Blank).

 

 

SB0157 Enrolled- 803 -LRB102 10128 HLH 16591 b

1    (d) (Blank).
2    (e) (Blank).
3    (f) (Blank).
4    (g) (Blank).
5    (h) (Blank).
6    (i) (Blank).
7    (j) (Blank).
8    (k) (Blank).
9    (l) (Blank).
10    (m) (Blank).
11    (n) (Blank).
12    (o) (Blank).
13    (p) (Blank).
14    (q) (Blank).
15    (r) (Blank).
16    (s) (Blank).
17    (t) (Blank).
18    (u) In addition to any other transfers that may be
19provided for by law, on July 1, 2021, or as soon thereafter as
20practical, only as directed by the Director of the Governor's
21Office of Management and Budget, the State Comptroller shall
22direct and the State Treasurer shall transfer the sum of
23$5,000,000 from the General Revenue Fund to the DoIT Special
24Projects Fund, and on June 1, 2022, or as soon thereafter as
25practical, but no later than June 30, 2022, the State
26Comptroller shall direct and the State Treasurer shall

 

 

SB0157 Enrolled- 804 -LRB102 10128 HLH 16591 b

1transfer the sum so transferred from the DoIT Special Projects
2Fund to the General Revenue Fund.
3    (v) In addition to any other transfers that may be
4provided for by law, on July 1, 2021, or as soon thereafter as
5practical, the State Comptroller shall direct and the State
6Treasurer shall transfer the sum of $500,000 from the General
7Revenue Fund to the Governor's Administrative Fund.
8    (w) In addition to any other transfers that may be
9provided for by law, on July 1, 2021, or as soon thereafter as
10practical, the State Comptroller shall direct and the State
11Treasurer shall transfer the sum of $500,000 from the General
12Revenue Fund to the Grant Accountability and Transparency
13Fund.
14    (x) In addition to any other transfers that may be
15provided for by law, at a time or times during Fiscal Year 2022
16as directed by the Governor, the State Comptroller shall
17direct and the State Treasurer shall transfer up to a total of
18$20,000,000 from the General Revenue Fund to the Illinois
19Sports Facilities Fund to be credited to the Advance Account
20within the Fund.
21    (y) In addition to any other transfers that may be
22provided for by law, on June 15, 2021, or as soon thereafter as
23practical, but no later than June 30, 2021, the State
24Comptroller shall direct and the State Treasurer shall
25transfer the sum of $100,000,000 from the General Revenue Fund
26to the Technology Management Revolving Fund.

 

 

SB0157 Enrolled- 805 -LRB102 10128 HLH 16591 b

1    (z) In addition to any other transfers that may be
2provided for by law, on the effective date of this amendatory
3Act of the 102nd General Assembly, or as soon thereafter as
4practical, but no later than June 30, 2022, the State
5Comptroller shall direct and the State Treasurer shall
6transfer the sum of $720,000,000 from the General Revenue Fund
7to the Budget Stabilization Fund.
8    (aa) In addition to any other transfers that may be
9provided for by law, on July 1, 2022, or as soon thereafter as
10practical, the State Comptroller shall direct and the State
11Treasurer shall transfer the sum of $280,000,000 from the
12General Revenue Fund to the Budget Stabilization Fund.
13    (bb) In addition to any other transfers that may be
14provided for by law, on July 1, 2022, or as soon thereafter as
15practical, the State Comptroller shall direct and the State
16Treasurer shall transfer the sum of $200,000,000 from the
17General Revenue Fund to the Pension Stabilization Fund.
18(Source: P.A. 101-10, eff. 6-5-19; 101-636, eff. 6-10-20;
19102-16, eff. 6-17-21.)
 
20
ARTICLE 85. INCOME TAX-INSTRUCTIONAL MATERIALS

 
21    Section 85-5. The Illinois Income Tax Act is amended by
22changing Section 225 as follows:
 
23    (35 ILCS 5/225)

 

 

SB0157 Enrolled- 806 -LRB102 10128 HLH 16591 b

1    Sec. 225. Credit for instructional materials and supplies.
2For taxable years beginning on and after January 1, 2017, a
3taxpayer shall be allowed a credit in the amount paid by the
4taxpayer during the taxable year for instructional materials
5and supplies with respect to classroom based instruction in a
6qualified school, or the maximum credit amount $250, whichever
7is less, provided that the taxpayer is a teacher, instructor,
8counselor, principal, or aide in a qualified school for at
9least 900 hours during a school year.
10    The credit may not be carried back and may not reduce the
11taxpayer's liability to less than zero. If the amount of the
12credit exceeds the tax liability for the year, the excess may
13be carried forward and applied to the tax liability of the 5
14taxable years following the excess credit year. The tax credit
15shall be applied to the earliest year for which there is a tax
16liability. If there are credits for more than one year that are
17available to offset a liability, the earlier credit shall be
18applied first.
19    For purposes of this Section, the term "materials and
20supplies" means amounts paid for instructional materials or
21supplies that are designated for classroom use in any
22qualified school. For purposes of this Section, the term
23"qualified school" means a public school or non-public school
24located in Illinois.
25    For purposes of this Section, the term "maximum credit
26amount" means (i) $250 for taxable years beginning prior to

 

 

SB0157 Enrolled- 807 -LRB102 10128 HLH 16591 b

1January 1, 2023 and (ii) $500 for taxable years beginning on or
2after January 1, 2023.
3    This Section is exempt from the provisions of Section 250.
4(Source: P.A. 100-22, eff. 7-6-17.)
 
5
ARTICLE 95. AGRITOURISM

 
6    Section 95-3. The Illinois Administrative Procedure Act is
7amended by adding Section 5-45.22 as follows:
 
8    (5 ILCS 100/5-45.22 new)
9    Sec. 5-45.22. Emergency rulemaking. To provide for the
10expeditious and timely implementation of Article 95 of this
11amendatory Act of the 102nd General Assembly, emergency rules
12implementing Article 95 of this amendatory Act of the 102nd
13General Assembly may be adopted in accordance with Section
145-45 by the Department of Agriculture. The adoption of
15emergency rules authorized by Section 5-45 and this Section is
16deemed to be necessary for the public interest, safety, and
17welfare.
18    This Section is repealed one year after the effective date
19of this amendatory Act of the 102nd General Assembly.
 
20    Section 95-5. The Illinois Income Tax Act is amended by
21adding Section 232 as follows:
 

 

 

SB0157 Enrolled- 808 -LRB102 10128 HLH 16591 b

1    (35 ILCS 5/232 new)
2    Sec. 232. Tax credit for agritourism liability insurance.
3    (a) For taxable years beginning on or after January 1,
42022 and ending on or before December 31, 2023, any individual
5or entity that operates an agritourism operation in the State
6during the taxable year shall be entitled to a tax credit
7against the tax imposed by subsections (a) and (b) of Section
8201 equal to the lesser of 100% of the liability insurance
9premiums paid by that individual or entity during the taxable
10year or $1,000. To claim the credit, the taxpayer must apply to
11the Department of Agriculture for a certificate of credit in
12the form and manner required by the Department of Agriculture
13by rule. If granted, the taxpayer shall attach a copy of the
14certificate of credit to his or her Illinois income tax return
15for the taxable year. The total amount of credits that may be
16awarded by the Department of Agriculture may not exceed
17$1,000,000 in any calendar year.
18    (b) For the purposes of this Section:
19    "Agricultural property" means property that is used in
20whole or in part for production agriculture, as defined in
21Section 3-35 of the Use Tax Act, or used in connection with one
22or more of the following:
23        (1) the growing and harvesting of crops;
24        (2) the feeding, breeding, and management of
25    livestock;
26        (3) dairying or any other agricultural or

 

 

SB0157 Enrolled- 809 -LRB102 10128 HLH 16591 b

1    horticultural use or combination of those uses, including,
2    but not limited to, the harvesting of hay, grain, fruit,
3    or truck or vegetable crops, or floriculture, mushroom
4    growing, plant or tree nurseries, orchards, forestry, sod
5    farming, or greenhouses; or
6        (4) the keeping, raising, and feeding of livestock or
7    poultry, including dairying, poultry, swine, sheep, beef
8    cattle, ponies or horses, fur farming, bees, fish and
9    wildlife farming.
10    "Agritourism activities" includes, but is not limited to,
11the following:
12        (1) historic, cultural, and on-site educational
13    programs;
14        (2) guided and self-guided tours, including school
15    tours;
16        (3) animal exhibitions or petting zoos;
17        (4) agricultural crop mazes, such as corn or flower
18    mazes;
19        (5) harvest-your-own or U-pick operations;
20        (6) horseback or pony rides; and
21        (7) hayrides or sleigh rides.
22    "Agritourism activities" does not include the following
23activities:
24        (1) hunting;
25        (2) fishing;
26        (3) amusement rides;

 

 

SB0157 Enrolled- 810 -LRB102 10128 HLH 16591 b

1        (4) rodeos;
2        (5) off-road biking or motorized off-highway or
3    all-terrain vehicle activities;
4        (6) boating, swimming, canoeing, hiking, camping,
5    skiing, bounce houses, or similar activities; or
6        (7) entertainment venues such as weddings or concerts.
7    "Agritourism operation" means an individual or entity that
8carries out agricultural activities on agricultural property
9and allows members of the general public, for recreational,
10entertainment, or educational purposes, to view or enjoy those
11activities.
12    (c) If the taxpayer is a partnership or Subchapter S
13corporation, the credit shall be allowed to the partners or
14shareholders in accordance with the determination of income
15and distributive share of income under Sections 702 and 704
16and Subchapter S of the Internal Revenue Code.
17    (d) In no event shall a credit under this Section reduce
18the taxpayer's liability to less than zero. If the amount of
19the credit exceeds the tax liability for the year, the excess
20may be carried forward and applied to the tax liability of the
215 taxable years following the excess credit year. The tax
22credit shall be applied to the earliest year for which there is
23a tax liability. If there are credits for more than one year
24that are available to offset a liability, the earlier credit
25shall be applied first.
 

 

 

SB0157 Enrolled- 811 -LRB102 10128 HLH 16591 b

1
ARTICLE 100. PARKING EXCISE TAX

 
2    Section 100-5. The Parking Excise Tax Act is amended by
3changing Section 10-5 as follows:
 
4    (35 ILCS 525/10-5)
5    Sec. 10-5. Definitions. As used in this Act:
6    "Booking intermediary" means any person or entity that
7facilitates the processing and fulfillment of reservation
8transactions between an operator and a person or entity
9desiring parking in a parking lot or garage of that operator.
10    "Charge or fee paid for parking" means the gross amount of
11consideration for the use or privilege of parking a motor
12vehicle in or upon any parking lot or garage in the State,
13collected by an operator and valued in money, whether received
14in money or otherwise, including cash, credits, property, and
15services, determined without any deduction for costs or
16expenses, but not including charges that are added to the
17charge or fee on account of the tax imposed by this Act or on
18account of any other tax imposed on the charge or fee. "Charge
19or fee paid for parking" excludes separately stated charges
20not for the use or privilege or parking and excludes amounts
21retained by or paid to a booking intermediary for services
22provided by the booking intermediary. If any separately stated
23charge is not optional, it shall be presumed that it is part of
24the charge for the use or privilege or parking.

 

 

SB0157 Enrolled- 812 -LRB102 10128 HLH 16591 b

1    "Department" means the Department of Revenue.
2    "Operator" means any person who engages in the business of
3operating a parking area or garage, or who, directly or
4through an agreement or arrangement with another party,
5collects the consideration for parking or storage of motor
6vehicles, recreational vehicles, or other self-propelled
7vehicles, at that parking place. This includes, but is not
8limited to, any facilitator or aggregator that collects the
9purchase price from the purchaser the charge or fee paid for
10parking. "Operator" does not include a bank, credit card
11company, payment processor, booking intermediary, or person
12whose involvement is limited to performing functions that are
13similar to those performed by a bank, credit card company, or
14payment processor, or booking intermediary.
15    "Parking area or garage" means any real estate, building,
16structure, premises, enclosure or other place, whether
17enclosed or not, except a public way, within the State, where
18motor vehicles, recreational vehicles, or other self-propelled
19vehicles, are stored, housed or parked for hire, charge, fee
20or other valuable consideration in a condition ready for use,
21or where rent or compensation is paid to the owner, manager,
22operator or lessee of the premises for the housing, storing,
23sheltering, keeping or maintaining motor vehicles,
24recreational vehicles, or other self-propelled vehicles.
25"Parking area or garage" includes any parking area or garage,
26whether the vehicle is parked by the owner of the vehicle or by

 

 

SB0157 Enrolled- 813 -LRB102 10128 HLH 16591 b

1the operator or an attendant.
2    "Person" means any natural individual, firm, trust,
3estate, partnership, association, joint stock company, joint
4venture, corporation, limited liability company, or a
5receiver, trustee, guardian, or other representative appointed
6by order of any court.
7    "Purchase price" means the consideration paid for the
8purchase of a parking space in a parking area or garage, valued
9in money, whether received in money or otherwise, including
10cash, gift cards, credits, and property, and shall be
11determined without any deduction on account of the cost of
12materials used, labor or service costs, or any other expense
13whatsoever.
14    "Purchase price" includes any and all charges that the
15recipient pays related to or incidental to obtaining the use
16or privilege of using a parking space in a parking area or
17garage, including but not limited to any and all related
18markups, service fees, convenience fees, facilitation fees,
19cancellation fees, overtime fees, or other such charges,
20regardless of terminology. However, "purchase price" shall not
21include consideration paid for:
22        (1) optional, separately stated charges not for the
23    use or privilege of using a parking space in the parking
24    area or garage;
25        (2) any charge for a dishonored check;
26        (3) any finance or credit charge, penalty or charge

 

 

SB0157 Enrolled- 814 -LRB102 10128 HLH 16591 b

1    for delayed payment, or discount for prompt payment;
2        (4) any purchase by a purchaser if the operator is
3    prohibited by federal or State Constitution, treaty,
4    convention, statute or court decision from collecting the
5    tax from such purchaser;
6        (5) the isolated or occasional sale of parking spaces
7    subject to tax under this Act by a person who does not hold
8    himself out as being engaged (or who does not habitually
9    engage) in selling of parking spaces; and
10        (6) any amounts added to a purchaser's bills because
11    of charges made pursuant to the tax imposed by this Act. If
12    credit is extended, then the amount thereof shall be
13    included only as and when payments are made.
14    "Purchaser" means any person who acquires a parking space
15in a parking area or garage for use for valuable
16consideration.
17    "Use" means the exercise by any person of any right or
18power over, or the enjoyment of, a parking space in a parking
19area or garage subject to tax under this Act.
20(Source: P.A. 101-31, eff. 6-28-19.)
 
21
ARTICLE 105. UNEMPLOYMENT BENEFITS

 
22    Section 105-5. The Unemployment Insurance Act is amended
23by changing Sections 401, 403, 703, 1505, 1506.6, and 2100 as
24follows:
 

 

 

SB0157 Enrolled- 815 -LRB102 10128 HLH 16591 b

1    (820 ILCS 405/401)  (from Ch. 48, par. 401)
2    Sec. 401. Weekly Benefit Amount - Dependents' Allowances.
3    A. With respect to any week beginning in a benefit year
4beginning prior to January 4, 2004, an individual's weekly
5benefit amount shall be an amount equal to the weekly benefit
6amount as defined in the provisions of this Act as amended and
7in effect on November 18, 2011.
8    B. 1. With respect to any benefit year beginning on or
9after January 4, 2004 and before January 6, 2008, an
10individual's weekly benefit amount shall be 48% of his or her
11prior average weekly wage, rounded (if not already a multiple
12of one dollar) to the next higher dollar; provided, however,
13that the weekly benefit amount cannot exceed the maximum
14weekly benefit amount and cannot be less than $51. Except as
15otherwise provided in this Section, with respect to any
16benefit year beginning on or after January 6, 2008, an
17individual's weekly benefit amount shall be 47% of his or her
18prior average weekly wage, rounded (if not already a multiple
19of one dollar) to the next higher dollar; provided, however,
20that the weekly benefit amount cannot exceed the maximum
21weekly benefit amount and cannot be less than $51. With
22respect to any benefit year beginning on or after January 1,
232023 and before January 1, 2024 July 3, 2022, an individual's
24weekly benefit amount shall be 42.4% of his or her prior
25average weekly wage, rounded (if not already a multiple of one

 

 

SB0157 Enrolled- 816 -LRB102 10128 HLH 16591 b

1dollar) to the next higher dollar; provided, however, that the
2weekly benefit amount cannot exceed the maximum weekly benefit
3amount and cannot be less than $51.
4    2. For the purposes of this subsection:
5    An individual's "prior average weekly wage" means the
6total wages for insured work paid to that individual during
7the 2 calendar quarters of his base period in which such total
8wages were highest, divided by 26. If the quotient is not
9already a multiple of one dollar, it shall be rounded to the
10nearest dollar; however if the quotient is equally near 2
11multiples of one dollar, it shall be rounded to the higher
12multiple of one dollar.
13    "Determination date" means June 1 and December 1 of each
14calendar year except that, for the purposes of this Act only,
15there shall be no June 1 determination date in any year.
16    "Determination period" means, with respect to each June 1
17determination date, the 12 consecutive calendar months ending
18on the immediately preceding December 31 and, with respect to
19each December 1 determination date, the 12 consecutive
20calendar months ending on the immediately preceding June 30.
21    "Benefit period" means the 12 consecutive calendar month
22period beginning on the first day of the first calendar month
23immediately following a determination date, except that, with
24respect to any calendar year in which there is a June 1
25determination date, "benefit period" shall mean the 6
26consecutive calendar month period beginning on the first day

 

 

SB0157 Enrolled- 817 -LRB102 10128 HLH 16591 b

1of the first calendar month immediately following the
2preceding December 1 determination date and the 6 consecutive
3calendar month period beginning on the first day of the first
4calendar month immediately following the June 1 determination
5date.
6    "Gross wages" means all the wages paid to individuals
7during the determination period immediately preceding a
8determination date for insured work, and reported to the
9Director by employers prior to the first day of the third
10calendar month preceding that date.
11    "Covered employment" for any calendar month means the
12total number of individuals, as determined by the Director,
13engaged in insured work at mid-month.
14    "Average monthly covered employment" means one-twelfth of
15the sum of the covered employment for the 12 months of a
16determination period.
17    "Statewide average annual wage" means the quotient,
18obtained by dividing gross wages by average monthly covered
19employment for the same determination period, rounded (if not
20already a multiple of one cent) to the nearest cent.
21    "Statewide average weekly wage" means the quotient,
22obtained by dividing the statewide average annual wage by 52,
23rounded (if not already a multiple of one cent) to the nearest
24cent. Notwithstanding any provision of this Section to the
25contrary, the statewide average weekly wage for any benefit
26period prior to calendar year 2012 shall be as determined by

 

 

SB0157 Enrolled- 818 -LRB102 10128 HLH 16591 b

1the provisions of this Act as amended and in effect on November
218, 2011. Notwithstanding any provisions of this Section to
3the contrary, the statewide average weekly wage for the
4benefit period of calendar year 2012 shall be $856.55 and for
5each calendar year thereafter, the statewide average weekly
6wage shall be the statewide average weekly wage, as determined
7in accordance with this sentence, for the immediately
8preceding benefit period plus (or minus) an amount equal to
9the percentage change in the statewide average weekly wage, as
10computed in accordance with the first sentence of this
11paragraph, between the 2 immediately preceding benefit
12periods, multiplied by the statewide average weekly wage, as
13determined in accordance with this sentence, for the
14immediately preceding benefit period. However, for purposes of
15the Workers' Compensation Act, the statewide average weekly
16wage will be computed using June 1 and December 1
17determination dates of each calendar year and such
18determination shall not be subject to the limitation of the
19statewide average weekly wage as computed in accordance with
20the preceding sentence of this paragraph.
21    With respect to any week beginning in a benefit year
22beginning prior to January 4, 2004, "maximum weekly benefit
23amount" with respect to each week beginning within a benefit
24period shall be as defined in the provisions of this Act as
25amended and in effect on November 18, 2011.
26    With respect to any benefit year beginning on or after

 

 

SB0157 Enrolled- 819 -LRB102 10128 HLH 16591 b

1January 4, 2004 and before January 6, 2008, "maximum weekly
2benefit amount" with respect to each week beginning within a
3benefit period means 48% of the statewide average weekly wage,
4rounded (if not already a multiple of one dollar) to the next
5higher dollar.
6    Except as otherwise provided in this Section, with respect
7to any benefit year beginning on or after January 6, 2008,
8"maximum weekly benefit amount" with respect to each week
9beginning within a benefit period means 47% of the statewide
10average weekly wage, rounded (if not already a multiple of one
11dollar) to the next higher dollar.
12    With respect to any benefit year beginning on or after
13January 1, 2023 and before January 1, 2024 July 3, 2022,
14"maximum weekly benefit amount" with respect to each week
15beginning within a benefit period means 42.4% of the statewide
16average weekly wage, rounded (if not already a multiple of one
17dollar) to the next higher dollar.
18    C. With respect to any week beginning in a benefit year
19beginning prior to January 4, 2004, an individual's
20eligibility for a dependent allowance with respect to a
21nonworking spouse or one or more dependent children shall be
22as defined by the provisions of this Act as amended and in
23effect on November 18, 2011.
24    With respect to any benefit year beginning on or after
25January 4, 2004 and before January 6, 2008, an individual to
26whom benefits are payable with respect to any week shall, in

 

 

SB0157 Enrolled- 820 -LRB102 10128 HLH 16591 b

1addition to those benefits, be paid, with respect to such
2week, as follows: in the case of an individual with a
3nonworking spouse, 9% of his or her prior average weekly wage,
4rounded (if not already a multiple of one dollar) to the next
5higher dollar, provided, that the total amount payable to the
6individual with respect to a week shall not exceed 57% of the
7statewide average weekly wage, rounded (if not already a
8multiple of one dollar) to the next higher dollar; and in the
9case of an individual with a dependent child or dependent
10children, 17.2% of his or her prior average weekly wage,
11rounded (if not already a multiple of one dollar) to the next
12higher dollar, provided that the total amount payable to the
13individual with respect to a week shall not exceed 65.2% of the
14statewide average weekly wage, rounded (if not already a
15multiple of one dollar) to the next higher dollar.
16    With respect to any benefit year beginning on or after
17January 6, 2008 and before January 1, 2010, an individual to
18whom benefits are payable with respect to any week shall, in
19addition to those benefits, be paid, with respect to such
20week, as follows: in the case of an individual with a
21nonworking spouse, 9% of his or her prior average weekly wage,
22rounded (if not already a multiple of one dollar) to the next
23higher dollar, provided, that the total amount payable to the
24individual with respect to a week shall not exceed 56% of the
25statewide average weekly wage, rounded (if not already a
26multiple of one dollar) to the next higher dollar; and in the

 

 

SB0157 Enrolled- 821 -LRB102 10128 HLH 16591 b

1case of an individual with a dependent child or dependent
2children, 18.2% of his or her prior average weekly wage,
3rounded (if not already a multiple of one dollar) to the next
4higher dollar, provided that the total amount payable to the
5individual with respect to a week shall not exceed 65.2% of the
6statewide average weekly wage, rounded (if not already a
7multiple of one dollar) to the next higher dollar.
8    The additional amount paid pursuant to this subsection in
9the case of an individual with a dependent child or dependent
10children shall be referred to as the "dependent child
11allowance", and the percentage rate by which an individual's
12prior average weekly wage is multiplied pursuant to this
13subsection to calculate the dependent child allowance shall be
14referred to as the "dependent child allowance rate".
15    Except as otherwise provided in this Section, with respect
16to any benefit year beginning on or after January 1, 2010, an
17individual to whom benefits are payable with respect to any
18week shall, in addition to those benefits, be paid, with
19respect to such week, as follows: in the case of an individual
20with a nonworking spouse, the greater of (i) 9% of his or her
21prior average weekly wage, rounded (if not already a multiple
22of one dollar) to the next higher dollar, or (ii) $15, provided
23that the total amount payable to the individual with respect
24to a week shall not exceed 56% of the statewide average weekly
25wage, rounded (if not already a multiple of one dollar) to the
26next higher dollar; and in the case of an individual with a

 

 

SB0157 Enrolled- 822 -LRB102 10128 HLH 16591 b

1dependent child or dependent children, the greater of (i) the
2product of the dependent child allowance rate multiplied by
3his or her prior average weekly wage, rounded (if not already a
4multiple of one dollar) to the next higher dollar, or (ii) the
5lesser of $50 or 50% of his or her weekly benefit amount,
6rounded (if not already a multiple of one dollar) to the next
7higher dollar, provided that the total amount payable to the
8individual with respect to a week shall not exceed the product
9of the statewide average weekly wage multiplied by the sum of
1047% plus the dependent child allowance rate, rounded (if not
11already a multiple of one dollar) to the next higher dollar.
12    With respect to any benefit year beginning on or after
13January 1, 2023 and before January 1, 2024 July 3, 2022, an
14individual to whom benefits are payable with respect to any
15week shall, in addition to those benefits, be paid, with
16respect to such week, as follows: in the case of an individual
17with a nonworking spouse, the greater of (i) 9% of his or her
18prior average weekly wage, rounded (if not already a multiple
19of one dollar) to the next higher dollar, or (ii) $15, provided
20that the total amount payable to the individual with respect
21to a week shall not exceed 51.4% of the statewide average
22weekly wage, rounded (if not already a multiple of one dollar)
23to the next higher dollar; and in the case of an individual
24with a dependent child or dependent children, the greater of
25(i) the product of the dependent child allowance rate
26multiplied by his or her prior average weekly wage, rounded

 

 

SB0157 Enrolled- 823 -LRB102 10128 HLH 16591 b

1(if not already a multiple of one dollar) to the next higher
2dollar, or (ii) the lesser of $50 or 50% of his or her weekly
3benefit amount, rounded (if not already a multiple of one
4dollar) to the next higher dollar, provided that the total
5amount payable to the individual with respect to a week shall
6not exceed the product of the statewide average weekly wage
7multiplied by the sum of 42.4% plus the dependent child
8allowance rate, rounded (if not already a multiple of one
9dollar) to the next higher dollar.
10    With respect to each benefit year beginning after calendar
11year 2012, the dependent child allowance rate shall be the sum
12of the allowance adjustment applicable pursuant to Section
131400.1 to the calendar year in which the benefit year begins,
14plus the dependent child allowance rate with respect to each
15benefit year beginning in the immediately preceding calendar
16year, except as otherwise provided in this subsection. The
17dependent child allowance rate with respect to each benefit
18year beginning in calendar year 2010 shall be 17.9%. The
19dependent child allowance rate with respect to each benefit
20year beginning in calendar year 2011 shall be 17.4%. The
21dependent child allowance rate with respect to each benefit
22year beginning in calendar year 2012 shall be 17.0% and, with
23respect to each benefit year beginning after calendar year
242012, shall not be less than 17.0% or greater than 17.9%.
25    For the purposes of this subsection:
26    "Dependent" means a child or a nonworking spouse.

 

 

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1    "Child" means a natural child, stepchild, or adopted child
2of an individual claiming benefits under this Act or a child
3who is in the custody of any such individual by court order,
4for whom the individual is supplying and, for at least 90
5consecutive days (or for the duration of the parental
6relationship if it has existed for less than 90 days)
7immediately preceding any week with respect to which the
8individual has filed a claim, has supplied more than one-half
9the cost of support, or has supplied at least 1/4 of the cost
10of support if the individual and the other parent, together,
11are supplying and, during the aforesaid period, have supplied
12more than one-half the cost of support, and are, and were
13during the aforesaid period, members of the same household;
14and who, on the first day of such week (a) is under 18 years of
15age, or (b) is, and has been during the immediately preceding
1690 days, unable to work because of illness or other
17disability: provided, that no person who has been determined
18to be a child of an individual who has been allowed benefits
19with respect to a week in the individual's benefit year shall
20be deemed to be a child of the other parent, and no other
21person shall be determined to be a child of such other parent,
22during the remainder of that benefit year.
23    "Nonworking spouse" means the lawful husband or wife of an
24individual claiming benefits under this Act, for whom more
25than one-half the cost of support has been supplied by the
26individual for at least 90 consecutive days (or for the

 

 

SB0157 Enrolled- 825 -LRB102 10128 HLH 16591 b

1duration of the marital relationship if it has existed for
2less than 90 days) immediately preceding any week with respect
3to which the individual has filed a claim, but only if the
4nonworking spouse is currently ineligible to receive benefits
5under this Act by reason of the provisions of Section 500E.
6    An individual who was obligated by law to provide for the
7support of a child or of a nonworking spouse for the aforesaid
8period of 90 consecutive days, but was prevented by illness or
9injury from doing so, shall be deemed to have provided more
10than one-half the cost of supporting the child or nonworking
11spouse for that period.
12(Source: P.A. 101-423, eff. 1-1-20; 101-633, eff. 6-5-20;
13102-671, eff. 11-30-21.)
 
14    (820 ILCS 405/403)  (from Ch. 48, par. 403)
15    Sec. 403. Maximum total amount of benefits.
16    A. With respect to any benefit year beginning prior to
17September 30, 1979, any otherwise eligible individual shall be
18entitled, during such benefit year, to a maximum total amount
19of benefits as shall be determined in the manner set forth in
20this Act as amended and in effect on November 9, 1977.
21    B. With respect to any benefit year beginning on or after
22September 30, 1979, except as otherwise provided in this
23Section, any otherwise eligible individual shall be entitled,
24during such benefit year, to a maximum total amount of
25benefits equal to 26 times his or her weekly benefit amount

 

 

SB0157 Enrolled- 826 -LRB102 10128 HLH 16591 b

1plus dependents' allowances, or to the total wages for insured
2work paid to such individual during the individual's base
3period, whichever amount is smaller. With respect to any
4benefit year beginning in calendar year 2012, any otherwise
5eligible individual shall be entitled, during such benefit
6year, to a maximum total amount of benefits equal to 25 times
7his or her weekly benefit amount plus dependents' allowances,
8or to the total wages for insured work paid to such individual
9during the individual's base period, whichever amount is
10smaller. With respect to any benefit year beginning on or
11after January 1, 2023 and before January 1, 2024 July 3, 2022,
12any otherwise eligible individual shall be entitled, during
13such benefit year, to a maximum total amount of benefits equal
14to 24 times his or her weekly benefit amount plus dependents'
15allowances, or to the total wages for insured work paid to such
16individual during the individual's base period, whichever
17amount is smaller.
18(Source: P.A. 101-423, eff. 1-1-20; 102-671, eff. 11-30-21.)
 
19    (820 ILCS 405/703)  (from Ch. 48, par. 453)
20    Sec. 703. Reconsideration of findings or determinations.
21The claims adjudicator may reconsider his finding at any time
22within thirteen weeks after the close of the benefit year. He
23may reconsider his determination at any time within one year
24after the last day of the week for which the determination was
25made, except that if the issue is whether or not, by reason of

 

 

SB0157 Enrolled- 827 -LRB102 10128 HLH 16591 b

1a back pay award made by any governmental agency or pursuant to
2arbitration proceedings, or by reason of a payment of wages
3wrongfully withheld by an employing unit, an individual has
4received wages for a week with respect to which he or she has
5received benefits or if the issue is whether or not the
6claimant misstated his earnings for the week, such
7reconsidered determination may be made at any time within 3
8years after the last day of the week, or if the issue is
9whether or not an individual misstated earnings for any week
10beginning on or after March 15, 2020, such reconsidered
11determination may be made at any time within 5 years after the
12last day of the week. No finding or determination shall be
13reconsidered at any time after appeal therefrom has been taken
14pursuant to the provisions of Section 800, except where a case
15has been remanded to the claims adjudicator by a Referee, the
16Director or the Board of Review, and except, further, that if
17an issue as to whether or not the claimant misstated his
18earnings is newly discovered, the determination may be
19reconsidered after and notwithstanding the fact that the
20decision upon the appeal has become final. Notice of such
21reconsidered determination or reconsidered finding shall be
22promptly given to the parties entitled to notice of the
23original determination or finding, as the case may be, in the
24same manner as is prescribed therefor, and such reconsidered
25determination or reconsidered finding shall be subject to
26appeal in the same manner and shall be given the same effect as

 

 

SB0157 Enrolled- 828 -LRB102 10128 HLH 16591 b

1is provided for an original determination or finding.
2    The changes made by this amendatory Act of the 102nd
3General Assembly apply retroactively to March 15, 2020.
4(Source: P.A. 92-396, eff. 1-1-02.)
 
5    (820 ILCS 405/1505)  (from Ch. 48, par. 575)
6    Sec. 1505. Adjustment of state experience factor. The
7state experience factor shall be adjusted in accordance with
8the following provisions:
9    A. For calendar years prior to 1988, the state experience
10factor shall be adjusted in accordance with the provisions of
11this Act as amended and in effect on November 18, 2011.
12    B. (Blank).
13    C. For calendar year 1988 and each calendar year
14thereafter, for which the state experience factor is being
15determined.
16        1. For every $50,000,000 (or fraction thereof) by
17    which the adjusted trust fund balance falls below the
18    target balance set forth in this subsection, the state
19    experience factor for the succeeding year shall be
20    increased one percent absolute.
21        For every $50,000,000 (or fraction thereof) by which
22    the adjusted trust fund balance exceeds the target balance
23    set forth in this subsection, the state experience factor
24    for the succeeding year shall be decreased by one percent
25    absolute.

 

 

SB0157 Enrolled- 829 -LRB102 10128 HLH 16591 b

1        The target balance in each calendar year prior to 2003
2    is $750,000,000. The target balance in calendar year 2003
3    is $920,000,000. The target balance in calendar year 2004
4    is $960,000,000. The target balance in calendar year 2005
5    and each calendar year thereafter is $1,000,000,000.
6        2. For the purposes of this subsection:
7        "Net trust fund balance" is the amount standing to the
8    credit of this State's account in the unemployment trust
9    fund as of June 30 of the calendar year immediately
10    preceding the year for which a state experience factor is
11    being determined.
12        "Adjusted trust fund balance" is the net trust fund
13    balance minus the sum of the benefit reserves for fund
14    building for July 1, 1987 through June 30 of the year prior
15    to the year for which the state experience factor is being
16    determined. The adjusted trust fund balance shall not be
17    less than zero. If the preceding calculation results in a
18    number which is less than zero, the amount by which it is
19    less than zero shall reduce the sum of the benefit
20    reserves for fund building for subsequent years.
21        For the purpose of determining the state experience
22    factor for 1989 and for each calendar year thereafter, the
23    following "benefit reserves for fund building" shall apply
24    for each state experience factor calculation in which that
25    12 month period is applicable:
26            a. For the 12 month period ending on June 30, 1988,

 

 

SB0157 Enrolled- 830 -LRB102 10128 HLH 16591 b

1        the "benefit reserve for fund building" shall be
2        8/104th of the total benefits paid from January 1,
3        1988 through June 30, 1988.
4            b. For the 12 month period ending on June 30, 1989,
5        the "benefit reserve for fund building" shall be the
6        sum of:
7                i. 8/104ths of the total benefits paid from
8            July 1, 1988 through December 31, 1988, plus
9                ii. 4/108ths of the total benefits paid from
10            January 1, 1989 through June 30, 1989.
11            c. For the 12 month period ending on June 30, 1990,
12        the "benefit reserve for fund building" shall be
13        4/108ths of the total benefits paid from July 1, 1989
14        through December 31, 1989.
15            d. For 1992 and for each calendar year thereafter,
16        the "benefit reserve for fund building" for the 12
17        month period ending on June 30, 1991 and for each
18        subsequent 12 month period shall be zero.
19        3. Notwithstanding the preceding provisions of this
20    subsection, for calendar years 1988 through 2003, the
21    state experience factor shall not be increased or
22    decreased by more than 15 percent absolute.
23    D. Notwithstanding the provisions of subsection C, the
24adjusted state experience factor:
25        1. Shall be 111 percent for calendar year 1988;
26        2. Shall not be less than 75 percent nor greater than

 

 

SB0157 Enrolled- 831 -LRB102 10128 HLH 16591 b

1    135 percent for calendar years 1989 through 2003; and
2    shall not be less than 75% nor greater than 150% for
3    calendar year 2004 and each calendar year thereafter, not
4    counting any increase pursuant to subsection D-1, D-2, or
5    D-3;
6        3. Shall not be decreased by more than 5 percent
7    absolute for any calendar year, beginning in calendar year
8    1989 and through calendar year 1992, by more than 6%
9    absolute for calendar years 1993 through 1995, by more
10    than 10% absolute for calendar years 1999 through 2003 and
11    by more than 12% absolute for calendar year 2004 and each
12    calendar year thereafter, from the adjusted state
13    experience factor of the calendar year preceding the
14    calendar year for which the adjusted state experience
15    factor is being determined;
16        4. Shall not be increased by more than 15% absolute
17    for calendar year 1993, by more than 14% absolute for
18    calendar years 1994 and 1995, by more than 10% absolute
19    for calendar years 1999 through 2003 and by more than 16%
20    absolute for calendar year 2004 and each calendar year
21    thereafter, from the adjusted state experience factor for
22    the calendar year preceding the calendar year for which
23    the adjusted state experience factor is being determined;
24        5. Shall be 100% for calendar years 1996, 1997, and
25    1998.
26    D-1. The adjusted state experience factor for each of

 

 

SB0157 Enrolled- 832 -LRB102 10128 HLH 16591 b

1calendar years 2013 through 2015 shall be increased by 5%
2absolute above the adjusted state experience factor as
3calculated without regard to this subsection. The adjusted
4state experience factor for each of calendar years 2016
5through 2018 shall be increased by 6% absolute above the
6adjusted state experience factor as calculated without regard
7to this subsection. The increase in the adjusted state
8experience factor for calendar year 2018 pursuant to this
9subsection shall not be counted for purposes of applying
10paragraph 3 or 4 of subsection D to the calculation of the
11adjusted state experience factor for calendar year 2019.
12    D-2. (Blank).
13    D-3. The adjusted state experience factor for the portion
14of calendar year 2023 2022 beginning July 3, 2022 shall be
15increased by 16% absolute above the adjusted state experience
16factor as calculated without regard to this subsection. The
17increase in the adjusted state experience factor for the
18portion of calendar year 2023 2022 beginning July 3, 2022
19pursuant to this subsection shall not be counted for purposes
20of applying paragraph 3 or 4 of subsection D to the calculation
21of the adjusted state experience factor for calendar year 2024
222023.
23    E. The amount standing to the credit of this State's
24account in the unemployment trust fund as of June 30 shall be
25deemed to include as part thereof (a) any amount receivable on
26that date from any Federal governmental agency, or as a

 

 

SB0157 Enrolled- 833 -LRB102 10128 HLH 16591 b

1payment in lieu of contributions under the provisions of
2Sections 1403 and 1405 B and paragraph 2 of Section 302C, in
3reimbursement of benefits paid to individuals, and (b) amounts
4credited by the Secretary of the Treasury of the United States
5to this State's account in the unemployment trust fund
6pursuant to Section 903 of the Federal Social Security Act, as
7amended, including any such amounts which have been
8appropriated by the General Assembly in accordance with the
9provisions of Section 2100 B for expenses of administration,
10except any amounts which have been obligated on or before that
11date pursuant to such appropriation.
12(Source: P.A. 101-423, eff. 1-1-20; 101-633, eff. 6-5-20;
13102-671, eff. 11-30-21.)
 
14    (820 ILCS 405/1506.6)
15    Sec. 1506.6. Surcharge; specified period. For each
16employer whose contribution rate for calendar year 2023 2022
17is determined pursuant to Section 1500 or 1506.1, in addition
18to the contribution rate established pursuant to Section
191506.3, for the portion of calendar year 2022 beginning July
203, 2022, an additional surcharge of 0.325% shall be added to
21the contribution rate. The surcharge established by this
22Section shall be due at the same time as other contributions
23with respect to the quarter are due, as provided in Section
241400. Payments attributable to the surcharge established
25pursuant to this Section shall be contributions and deposited

 

 

SB0157 Enrolled- 834 -LRB102 10128 HLH 16591 b

1into the clearing account.
2(Source: P.A. 101-423, eff. 1-1-20; 101-633, eff. 6-5-20;
3102-671, eff. 11-30-21.)
 
4    (820 ILCS 405/2100)  (from Ch. 48, par. 660)
5    Sec. 2100. Handling of funds - Bond - Accounts.
6    A. All contributions and payments in lieu of contributions
7collected under this Act, including but not limited to fund
8building receipts and receipts attributable to the surcharge
9established pursuant to Section 1506.5, together with any
10interest thereon; all penalties collected pursuant to this
11Act; any property or securities acquired through the use
12thereof; all moneys advanced to this State's account in the
13unemployment trust fund pursuant to the provisions of Title
14XII of the Social Security Act, as amended; all moneys
15directed for transfer from the Master Bond Fund or the Title
16XII Interest Fund to this State's account in the unemployment
17trust fund; all moneys received from the Federal government as
18reimbursements pursuant to Section 204 of the Federal-State
19Extended Unemployment Compensation Act of 1970, as amended;
20all moneys credited to this State's account in the
21unemployment trust fund pursuant to Section 903 of the Federal
22Social Security Act, as amended; all administrative fees
23collected from individuals pursuant to Section 900 or from
24employing units pursuant to Section 2206.1; funds directed for
25deposit into the State's account in the Unemployment Trust

 

 

SB0157 Enrolled- 835 -LRB102 10128 HLH 16591 b

1Fund from any other source; and all earnings of such property
2or securities and any interest earned upon any such moneys
3shall be paid or turned over to the Department and held by the
4Director, as ex-officio custodian of the clearing account, the
5unemployment trust fund account and the benefit account, and
6by the State Treasurer, as ex-officio custodian of the special
7administrative account, separate and apart from all public
8moneys or funds of this State, as hereinafter provided. Such
9moneys shall be administered by the Director exclusively for
10the purposes of this Act.
11    No such moneys shall be paid or expended except upon the
12direction of the Director in accordance with such regulations
13as he shall prescribe pursuant to the provisions of this Act.
14    The State Treasurer shall be liable on his general
15official bond for the faithful performance of his duties in
16connection with the moneys in the special administrative
17account provided for under this Act. Such liability on his
18official bond shall exist in addition to the liability upon
19any separate bond given by him. All sums recovered for losses
20sustained by the account shall be deposited in that account.
21    The Director shall be liable on his general official bond
22for the faithful performance of his duties in connection with
23the moneys in the clearing account, the benefit account and
24unemployment trust fund account provided for under this Act.
25Such liability on his official bond shall exist in addition to
26the liability upon any separate bond given by him. All sums

 

 

SB0157 Enrolled- 836 -LRB102 10128 HLH 16591 b

1recovered for losses sustained by any one of the accounts
2shall be deposited in the account that sustained such loss.
3    The Treasurer shall maintain for such moneys a special
4administrative account. The Director shall maintain for such
5moneys 3 separate accounts: a clearing account, a benefit
6account, and an unemployment trust fund account. All moneys
7payable under this Act (except moneys requisitioned from this
8State's account in the unemployment trust fund and deposited
9in the benefit account and moneys directed for deposit into
10the Special Programs Fund provided for under Section 2107),
11including but not limited to moneys directed for transfer from
12the Master Bond Fund or the Title XII Interest Fund to this
13State's account in the unemployment trust fund, upon receipt
14thereof, shall be immediately deposited in the clearing
15account; provided, however, that, except as is otherwise
16provided in this Section, interest and penalties shall not be
17deemed a part of the clearing account but shall be transferred
18immediately upon clearance thereof to the special
19administrative account; further provided that an amount not to
20exceed $90,000,000 in payments attributable to the surcharge
21established pursuant to Section 1506.5, including any interest
22thereon, shall not be deemed a part of the clearing account but
23shall be transferred immediately upon clearance thereof to the
24Title XII Interest Fund.
25    After clearance thereof, all other moneys in the clearing
26account shall be immediately deposited by the Director with

 

 

SB0157 Enrolled- 837 -LRB102 10128 HLH 16591 b

1the Secretary of the Treasury of the United States of America
2to the credit of the account of this State in the unemployment
3trust fund, established and maintained pursuant to the Federal
4Social Security Act, as amended, except fund building
5receipts, which shall be deposited into the Master Bond Fund.
6The benefit account shall consist of all moneys requisitioned
7from this State's account in the unemployment trust fund. The
8moneys in the benefit account shall be expended in accordance
9with regulations prescribed by the Director and solely for the
10payment of benefits, refunds of contributions, interest and
11penalties under the provisions of the Act, the payment of
12health insurance in accordance with Section 410 of this Act,
13and the transfer or payment of funds to any Federal or State
14agency pursuant to reciprocal arrangements entered into by the
15Director under the provisions of Section 2700E, except that
16moneys credited to this State's account in the unemployment
17trust fund pursuant to Section 903 of the Federal Social
18Security Act, as amended, shall be used exclusively as
19provided in subsection B. For purposes of this Section only,
20to the extent allowed by applicable legal requirements, the
21payment of benefits includes but is not limited to the payment
22of principal on any bonds issued pursuant to the Illinois
23Unemployment Insurance Trust Fund Financing Act, exclusive of
24any interest or administrative expenses in connection with the
25bonds. The Director shall, from time to time, requisition from
26the unemployment trust fund such amounts, not exceeding the

 

 

SB0157 Enrolled- 838 -LRB102 10128 HLH 16591 b

1amounts standing to the State's account therein, as he deems
2necessary solely for the payment of such benefits, refunds,
3and funds, for a reasonable future period. The Director, as
4ex-officio custodian of the benefit account, which shall be
5kept separate and apart from all other public moneys, shall
6issue payment of such benefits, refunds, health insurance and
7funds solely from the moneys so received into the benefit
8account. However, after January 1, 1987, no payment shall be
9drawn on such benefit account unless at the time of drawing
10there is sufficient money in the account to make the payment.
11The Director shall retain in the clearing account an amount of
12interest and penalties equal to the amount of interest and
13penalties to be refunded from the benefit account. After
14clearance thereof, the amount so retained shall be immediately
15deposited by the Director, as are all other moneys in the
16clearing account, with the Secretary of the Treasury of the
17United States. If, at any time, an insufficient amount of
18interest and penalties is available for retention in the
19clearing account, no refund of interest or penalties shall be
20made from the benefit account until a sufficient amount is
21available for retention and is so retained, or until the State
22Treasurer, upon the direction of the Director, transfers to
23the Director a sufficient amount from the special
24administrative account, for immediate deposit in the benefit
25account.
26    Any balance of moneys requisitioned from the unemployment

 

 

SB0157 Enrolled- 839 -LRB102 10128 HLH 16591 b

1trust fund which remains unclaimed or unpaid in the benefit
2account after the expiration of the period for which such sums
3were requisitioned shall either be deducted from estimates of
4and may be utilized for authorized expenditures during
5succeeding periods, or, in the discretion of the Director,
6shall be redeposited with the Secretary of the Treasury of the
7United States to the credit of the State's account in the
8unemployment trust fund.
9    Moneys in the clearing, benefit and special administrative
10accounts shall not be commingled with other State funds but
11they shall be deposited as required by law and maintained in
12separate accounts on the books of a savings and loan
13association or bank.
14    No bank or savings and loan association shall receive
15public funds as permitted by this Section, unless it has
16complied with the requirements established pursuant to Section
176 of "An Act relating to certain investments of public funds by
18public agencies", approved July 23, 1943, as now or hereafter
19amended.
20    B. Moneys credited to the account of this State in the
21unemployment trust fund by the Secretary of the Treasury of
22the United States pursuant to Section 903 of the Social
23Security Act may be requisitioned from this State's account
24and used as authorized by Section 903. Any interest required
25to be paid on advances under Title XII of the Social Security
26Act shall be paid in a timely manner and shall not be paid,

 

 

SB0157 Enrolled- 840 -LRB102 10128 HLH 16591 b

1directly or indirectly, by an equivalent reduction in
2contributions or payments in lieu of contributions from
3amounts in this State's account in the unemployment trust
4fund. Such moneys may be requisitioned and used for the
5payment of expenses incurred for the administration of this
6Act, but only pursuant to a specific appropriation by the
7General Assembly and only if the expenses are incurred and the
8moneys are requisitioned after the enactment of an
9appropriation law which:
10        1. Specifies the purpose or purposes for which such
11    moneys are appropriated and the amount or amounts
12    appropriated therefor;
13        2. Limits the period within which such moneys may be
14    obligated to a period ending not more than 2 years after
15    the date of the enactment of the appropriation law; and
16        3. Limits the amount which may be obligated during any
17    fiscal year to an amount which does not exceed the amount
18    by which (a) the aggregate of the amounts transferred to
19    the account of this State pursuant to Section 903 of the
20    Social Security Act exceeds (b) the aggregate of the
21    amounts used by this State pursuant to this Act and
22    charged against the amounts transferred to the account of
23    this State.
24    For purposes of paragraph (3) above, amounts obligated for
25administrative purposes pursuant to an appropriation shall be
26chargeable against transferred amounts at the exact time the

 

 

SB0157 Enrolled- 841 -LRB102 10128 HLH 16591 b

1obligation is entered into. The appropriation, obligation, and
2expenditure or other disposition of money appropriated under
3this subsection shall be accounted for in accordance with
4standards established by the United States Secretary of Labor.
5    Moneys appropriated as provided herein for the payment of
6expenses of administration shall be requisitioned by the
7Director as needed for the payment of obligations incurred
8under such appropriation. Upon requisition, such moneys shall
9be deposited with the State Treasurer, who shall hold such
10moneys, as ex-officio custodian thereof, in accordance with
11the requirements of Section 2103 and, upon the direction of
12the Director, shall make payments therefrom pursuant to such
13appropriation. Moneys so deposited shall, until expended,
14remain a part of the unemployment trust fund and, if any will
15not be expended, shall be returned promptly to the account of
16this State in the unemployment trust fund.
17    C. The Governor is authorized to apply to the United
18States Secretary of Labor for an advance or advances to this
19State's account in the unemployment trust fund pursuant to the
20conditions set forth in Title XII of the Federal Social
21Security Act, as amended. The State's account in the
22unemployment trust fund is authorized to receive
23appropriations of State funds from other State accounts to
24repay any such advance or advances. The amount of any such
25advance may be repaid from this State's account in the
26unemployment trust fund.

 

 

SB0157 Enrolled- 842 -LRB102 10128 HLH 16591 b

1    D. The Director shall annually on or before the first day
2of March report in writing to the Employment Security Advisory
3Board concerning the deposits into and expenditures from this
4State's account in the Unemployment Trust Fund.
5    E. The changes made by this amendatory Act of the 102nd
6General Assembly to subsection A and subsection C clarify
7authority already provided by law.
8(Source: P.A. 97-1, eff. 3-31-11; 97-621, eff. 11-18-11;
997-791, eff. 1-1-13.)
 
10
ARTICLE 110. MICRO ACT

 
11    Section 110-1. Short title. This Article may be cited as
12the Manufacturing Illinois Chips for Real Opportunity (MICRO)
13Act. References in this Article to "this Act" mean this
14Article.
 
15    Section 110-5. Purpose. It is the intent of the General
16Assembly that Illinois should lead the nation in production of
17semiconductors and microchips as they become even more
18prevalent in everyday life. The General Assembly finds that,
19through investments in semiconductors and microchips, Illinois
20will be on the forefront of reshoring semiconductor and
21microchip production that fuels modern technologies that are
22essential to the operation of computers, phones, vehicles and
23any electric product that have become essential to modern

 

 

SB0157 Enrolled- 843 -LRB102 10128 HLH 16591 b

1life. This Act will create good paying jobs, and generate
2long-term economic investment in the Illinois business
3economy, in addition to ensuring a vital product is made in the
4United States. Illinois must aggressively adopt new business
5development investment tools so that Illinois can compete with
6domestic and foreign competitors for semiconductor and chip
7manufacturing.
 
8    Section 110-10. Definitions. As used in this Act:
9    "Agreement" means the agreement between a taxpayer and the
10Department under the provisions of this Act.
11    "Applicant" means a taxpayer that: (i) operates a business
12in Illinois as a semiconductor manufacturer, a microchip
13manufacturer, or a manufacturer of semiconductor or microchip
14component parts; or (ii) is planning to locate a business
15within the State of Illinois as a semiconductor manufacturer,
16a microchip manufacturer, or a manufacturer of semiconductor
17or microchip component parts. "Applicant" does not include a
18taxpayer who closes or substantially reduces by more than 50%
19operations at one location in the State and relocates
20substantially the same operation to another location in the
21State. This does not prohibit a Taxpayer from expanding its
22operations at another location in the State. This also does
23not prohibit a Taxpayer from moving its operations from one
24location in the State to another location in the State for the
25purpose of expanding the operation, provided that the

 

 

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1Department determines that expansion cannot reasonably be
2accommodated within the municipality or county in which the
3business is located, or, in the case of a business located in
4an incorporated area of the county, within the county in which
5the business is located, after conferring with the chief
6elected official of the municipality or county and taking into
7consideration any evidence offered by the municipality or
8county regarding the ability to accommodate expansion within
9the municipality or county.
10    "Capital improvements" means the purchase, renovation,
11rehabilitation, or construction of permanent tangible land,
12buildings, structures, equipment, and furnishings in an
13approved project sited in Illinois and expenditures for goods
14or services that are normally capitalized, including
15organizational costs and research and development costs
16incurred in Illinois. For land, buildings, structures, and
17equipment that are leased, the lease must equal or exceed the
18term of the agreement, and the cost of the property shall be
19determined from the present value, using the corporate
20interest rate prevailing at the time of the application, of
21the lease payments.
22    "Credit" or "MICRO credit" means a credit agreed to
23between the Department and applicant under this Act.
24    "Department" means the Department of Commerce and Economic
25Opportunity.
26    "Director" means the Director of Commerce and Economic

 

 

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1Opportunity.
2    "Energy Transition Area" means a county with less than
3100,000 people or a municipality that contains one or more of
4the following:
5        (1) a fossil fuel plant that was retired from service
6    or has significant reduced service within 6 years before
7    the time of the application or will be retired or have
8    service significantly reduced within 6 years following the
9    time of the application; or
10        (2) a coal mine that was closed or had operations
11    significantly reduced within 6 years before the time of
12    the application or is anticipated to be closed or have
13    operations significantly reduced within 6 years following
14    the time of the application.
15    "Full-time employee" means an individual who is employed
16for consideration for at least 35 hours each week or who
17renders any other standard of service generally accepted by
18industry custom or practice as full-time employment. An
19individual for whom a W-2 is issued by a Professional Employer
20Organization (PEO) is a full-time employee if employed in the
21service of the applicant for consideration for at least 35
22hours each week.
23    "Incremental income tax" means the total amount withheld
24during the taxable year from the compensation of new employees
25and, if applicable, retained employees under Article 7 of the
26Illinois Income Tax Act arising from employment at a project

 

 

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1that is the subject of an agreement.
2    "Institution of higher education" or "institution" means
3any accredited public or private university, college,
4community college, business, technical, or vocational school,
5or other accredited educational institution offering degrees
6and instruction beyond the secondary school level.
7    "MICRO construction jobs credit" means a credit agreed to
8between the Department and the applicant under this Act that
9is based on the incremental income tax attributable to
10construction wages paid in connection with construction of the
11project facilities.
12    "MICRO credit" means a credit agreed to between the
13Department and the applicant under this Act that is based on
14the incremental income tax attributable to new employees and,
15if applicable, retained employees, and on training costs for
16such employees at the applicant's project.
17    "Microchip" means a wafer of semiconducting material that
18is less than 15 millimeters long and less than 5 millimeters
19wide and is used to make an integrated circuit.
20    "Microchip manufacturer" means a new or existing
21manufacturer that is focused on reequipping, expanding, or
22establishing a manufacturing facility in Illinois that
23produces microchips or key components that directly support
24the functions of microchips.
25    "Minority person" means a minority person as defined in
26the Business Enterprise for Minorities, Women, and Persons

 

 

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1with Disabilities Act.
2    "New employee" means a newly-hired full-time employee
3employed to work at the project site and whose work is directly
4related to the project.
5    "Noncompliance date" means, in the case of a taxpayer that
6is not complying with the requirements of the agreement or the
7provisions of this Act, the day following the last date upon
8which the taxpayer was in compliance with the requirements of
9the agreement and the provisions of this Act, as determined by
10the Director.
11    "Pass-through entity" means an entity that is exempt from
12the tax under subsection (b) or (c) of Section 205 of the
13Illinois Income Tax Act.
14    "Placed in service" means the state or condition of
15readiness, availability for a specifically assigned function,
16and the facility is constructed and ready to conduct its
17facility operations to manufacture goods.
18    "Professional employer organization" (PEO) means an
19employee leasing company, as defined in Section 206.1 of the
20Illinois Unemployment Insurance Act.
21    "Program" means the Manufacturing Illinois Chips for Real
22Opportunity (MICRO) program established in this Act.
23    "Project" means a for-profit economic development activity
24for the manufacture of semiconductors and microchips.
25    "Related member" means a person that, with respect to the
26taxpayer during any portion of the taxable year, is any one of

 

 

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1the following:
2        (1) An individual stockholder, if the stockholder and
3    the members of the stockholder's family (as defined in
4    Section 318 of the Internal Revenue Code) own directly,
5    indirectly, beneficially, or constructively, in the
6    aggregate, at least 50% of the value of the taxpayer's
7    outstanding stock.
8        (2) A partnership, estate, trust and any partner or
9    beneficiary, if the partnership, estate, or trust, and its
10    partners or beneficiaries own directly, indirectly,
11    beneficially, or constructively, in the aggregate, at
12    least 50% of the profits, capital, stock, or value of the
13    taxpayer.
14        (3) A corporation, and any party related to the
15    corporation in a manner that would require an attribution
16    of stock from the corporation under the attribution rules
17    of Section 318 of the Internal Revenue Code, if the
18    Taxpayer owns directly, indirectly, beneficially, or
19    constructively at least 50% of the value of the
20    corporation's outstanding stock.
21        (4) A corporation and any party related to that
22    corporation in a manner that would require an attribution
23    of stock from the corporation to the party or from the
24    party to the corporation under the attribution rules of
25    Section 318 of the Internal Revenue Code, if the
26    corporation and all such related parties own in the

 

 

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1    aggregate at least 50% of the profits, capital, stock, or
2    value of the taxpayer.
3        (5) A person to or from whom there is an attribution of
4    stock ownership in accordance with Section 1563(e) of the
5    Internal Revenue Code, except, for purposes of determining
6    whether a person is a related member under this paragraph,
7    20% shall be substituted for 5% wherever 5% appears in
8    Section 1563(e) of the Internal Revenue Code.
9    "Retained employee" means a full-time employee employed by
10the taxpayer prior to the term of the Agreement who continues
11to be employed during the term of the agreement whose job
12duties are directly and substantially related to the project.
13For purposes of this definition, "directly and substantially
14related to the project" means at least two-thirds of the
15employee's job duties must be directly related to the project
16and the employee must devote at least two-thirds of his or her
17time to the project. The term "retained employee" does not
18include any individual who has a direct or an indirect
19ownership interest of at least 5% in the profits, equity,
20capital, or value of the taxpayer or a child, grandchild,
21parent, or spouse, other than a spouse who is legally
22separated from the individual, of any individual who has a
23direct or indirect ownership of at least 5% in the profits,
24equity, capital, or value of the taxpayer.
25    "Semiconductor" means any class of crystalline solids
26intermediate in electrical conductivity between a conductor

 

 

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1and an insulator.
2    "Semiconductor manufacturer" means a new or existing
3manufacturer that is focused on reequipping, expanding, or
4establishing a manufacturing facility in Illinois that
5produces semiconductors or key components that directly
6support the functions of semiconductors.
7    "Statewide baseline" means the total number of full-time
8employees of the applicant and any related member employed by
9such entities at the time of application for incentives under
10this Act.
11    "Taxpayer" means an individual, corporation, partnership,
12or other entity that has a legal obligation to pay Illinois
13income taxes and file an Illinois income tax return.
14    "Training costs" means costs incurred to upgrade the
15technological skills of full-time employees in Illinois and
16includes: curriculum development; training materials
17(including scrap product costs); trainee domestic travel
18expenses; instructor costs (including wages, fringe benefits,
19tuition and domestic travel expenses); rent, purchase or lease
20of training equipment; and other usual and customary training
21costs. "Training costs" do not include costs associated with
22travel outside the United States (unless the Taxpayer receives
23prior written approval for the travel by the Director based on
24a showing of substantial need or other proof the training is
25not reasonably available within the United States), wages and
26fringe benefits of employees during periods of training, or

 

 

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1administrative cost related to Full-Time Employees of the
2Taxpayer.
3    "Underserved area" means any geographic areas as defined
4in Section 5-5 of the Economic Development for a Growing
5Economy Tax Credit Act.
 
6    Section 110-15. Powers of the Department. The Department,
7in addition to those powers granted under the Civil
8Administrative Code of Illinois, is granted and shall have all
9the powers necessary or convenient to administer the program
10under this Act and to carry out and effectuate the purposes and
11provisions of this Act, including, but not limited to, the
12power and authority to:
13        (1) adopt rules deemed necessary and appropriate for
14    the administration of the program, the designation of
15    projects, and the awarding of credits;
16        (2) establish forms for applications, notifications,
17    contracts, or any other agreements and accept applications
18    at any time during the year;
19        (3) assist taxpayers pursuant to the provisions of
20    this Act and cooperate with taxpayers that are parties to
21    agreements under this Act to promote, foster, and support
22    economic development, capital investment, and job creation
23    or retention within the State;
24        (4) enter into agreements and memoranda of
25    understanding for participation of, and engage in

 

 

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1    cooperation with, agencies of the federal government,
2    units of local government, universities, research
3    foundations or institutions, regional economic development
4    corporations, or other organizations to implement the
5    requirements and purposes of this Act;
6        (5) gather information and conduct inquiries, in the
7    manner and by the methods it deems desirable, including
8    without limitation, gathering information with respect to
9    applicants for the purpose of making any designations or
10    certifications necessary or desirable or to gather
11    information to assist the Department with any
12    recommendation or guidance in the furtherance of the
13    purposes of this Act;
14        (6) establish, negotiate and effectuate agreements and
15    any term, agreement, or other document with any person,
16    necessary or appropriate to accomplish the purposes of
17    this Act; and to consent, subject to the provisions of any
18    agreement with another party, to the modification or
19    restructuring of any agreement to which the Department is
20    a party;
21        (7) fix, determine, charge, and collect any premiums,
22    fees, charges, costs, and expenses from applicants,
23    including, without limitation, any application fees,
24    commitment fees, program fees, financing charges, or
25    publication fees as deemed appropriate to pay expenses
26    necessary or incident to the administration, staffing, or

 

 

SB0157 Enrolled- 853 -LRB102 10128 HLH 16591 b

1    operation in connection with the Department's activities
2    under this Act, or for preparation, implementation, and
3    enforcement of the terms of the agreement, or for
4    consultation, advisory and legal fees, and other costs;
5    however, all fees and expenses incident thereto shall be
6    the responsibility of the applicant;
7        (8) provide for sufficient personnel to permit
8    administration, staffing, operation, and related support
9    required to adequately discharge its duties and
10    responsibilities described in this Act from funds made
11    available through charges to applicants or from funds as
12    may be appropriated by the General Assembly for the
13    administration of this Act;
14        (9) require applicants, upon written request, to issue
15    any necessary authorization to the appropriate federal,
16    State, or local authority for the release of information
17    concerning a project being considered under the provisions
18    of this Act, with the information requested to include,
19    but not be limited to, financial reports, returns, or
20    records relating to the taxpayer or its project;
21        (10) require that a taxpayer shall at all times keep
22    proper books of record and account in accordance with
23    generally accepted accounting principles consistently
24    applied, with the books, records, or papers related to the
25    agreement in the custody or control of the taxpayer open
26    for reasonable Department inspection and audits, and

 

 

SB0157 Enrolled- 854 -LRB102 10128 HLH 16591 b

1    including, without limitation, the making of copies of the
2    books, records, or papers, and the inspection or appraisal
3    of any of the taxpayer or project assets;
4        (11) take whatever actions are necessary or
5    appropriate to protect the State's interest in the event
6    of bankruptcy, default, foreclosure, or noncompliance with
7    the terms and conditions of financial assistance or
8    participation required under this Act, including the power
9    to sell, dispose, lease, or rent, upon terms and
10    conditions determined by the Director to be appropriate,
11    real or personal property that the Department may receive
12    as a result of these actions.
 
13    Section 110-20. Manufacturing Illinois Chips for Real
14Opportunity (MICRO) Program; project applications.
15    (a) The Manufacturing Illinois Chips for Real Opportunity
16(MICRO) Program is hereby established and shall be
17administered by the Department. The Program will provide
18financial incentives to eligible semiconductor manufacturers
19and microchip manufacturers.
20    (b) Any taxpayer planning a project to be located in
21Illinois may request consideration for designation of its
22project as a MICRO project, by formal written letter of
23request or by formal application to the Department, in which
24the applicant states its intent to make at least a specified
25level of investment and intends to hire a specified number of

 

 

SB0157 Enrolled- 855 -LRB102 10128 HLH 16591 b

1full-time employees at a designated location in Illinois. As
2circumstances require, the Department shall require a formal
3application from an applicant and a formal letter of request
4for assistance.
5    (c) In order to qualify for credits under the program, an
6Applicant must:
7        (1) for a semiconductor manufacturer or microchip
8    manufacturer:
9            (A) make an investment of at least $1,500,000,000
10        in capital improvements at the project site;
11            (B) to be placed in service within the State
12        within a 60-month period after approval of the
13        application; and
14            (C) create at least 500 new full-time employee
15        jobs; or
16        (2) for a semiconductor or microchip component parts
17    manufacturer:
18            (A) make an investment of at least $300,000,000 in
19        capital improvements at the project site;
20            (B) manufacture one or more parts that are
21        primarily used for the manufacture of semiconductors
22        or microchips;
23            (C) to be placed in service within the State
24        within a 60-month period after approval of the
25        application; and
26            (D) create at least 150 new full-time employee

 

 

SB0157 Enrolled- 856 -LRB102 10128 HLH 16591 b

1        jobs; or
2        (3) for a semiconductor manufacturer or microchip
3    manufacturer or a semiconductor or microchip component
4    parts manufacturer that does not quality under paragraph
5    (2) above:
6            (A) make an investment of at least $20,000,000 in
7        capital improvements at the project site;
8            (B) to be placed in service within the State
9        within a 48-month period after approval of the
10        application; and
11            (C) create at least 50 new full-time employee
12        jobs; or
13        (4) for a semiconductor manufacturer or microchip
14    manufacturer or a semiconductor or microchip component
15    parts manufacturer with existing operations in Illinois
16    that intends to convert or expand, in whole or in part, the
17    existing facility from traditional manufacturing to
18    semiconductor manufacturing or microchip manufacturing or
19    semiconductor or microchip component parts manufacturing:
20            (A) make an investment of at least $100,000,000 in
21        capital improvements at the project site;
22            (B) to be placed in service within the State
23        within a 60-month period after approval of the
24        application; and
25            (C) create the lesser of 75 new full-time employee
26        jobs or new full-time employee jobs equivalent to 10%

 

 

SB0157 Enrolled- 857 -LRB102 10128 HLH 16591 b

1        of the Statewide baseline applicable to the taxpayer
2        and any related member at the time of application.
3    (d) For any applicant creating the full-time employee jobs
4noted in subsection (c), those jobs must have a total
5compensation equal to or greater than 120% of the average wage
6paid to full-time employees in the county where the project is
7located, as determined by the U.S. Bureau of Labor Statistics.
8    (e) Each applicant must outline its hiring plan and
9commitment to recruit and hire full-time employee positions at
10the project site. The hiring plan may include a partnership
11with an institution of higher education to provide
12internships, including, but not limited to, internships
13supported by the Clean Jobs Workforce Network Program, or
14full-time permanent employment for students at the project
15site. Additionally, the applicant may create or utilize
16participants from apprenticeship programs that are approved by
17and registered with the United States Department of Labor's
18Bureau of Apprenticeship and Training. The Applicant may apply
19for apprenticeship education expense credits in accordance
20with the provisions set forth in 14 Ill. Admin. Code 522. Each
21applicant is required to report annually, on or before April
2215, on the diversity of its workforce in accordance with
23Section 110-50 of this Act. For existing facilities of
24applicants under paragraph (3) of subsection (b) above, if the
25taxpayer expects a reduction in force due to its transition to
26manufacturing semiconductors, microchips, or semiconductor or

 

 

SB0157 Enrolled- 858 -LRB102 10128 HLH 16591 b

1microchip component parts, the plan submitted under this
2Section must outline the taxpayer's plan to assist with
3retraining its workforce aligned with the taxpayer's adoption
4of new technologies and anticipated efforts to retrain
5employees through employment opportunities within the
6taxpayer's workforce.
7    (f) A taxpayer may not enter into more than one agreement
8under this Act with respect to a single address or location for
9the same period of time. Also, a taxpayer may not enter into an
10agreement under this Act with respect to a single address or
11location for the same period of time for which the taxpayer
12currently holds an active agreement under the Economic
13Development for a Growing Economy Tax Credit Act. This
14provision does not preclude the applicant from entering into
15an additional agreement after the expiration or voluntary
16termination of an earlier agreement under this Act or under
17the Economic Development for a Growing Economy Tax Credit Act
18to the extent that the taxpayer's application otherwise
19satisfies the terms and conditions of this Act and is approved
20by the Department. An applicant with an existing agreement
21under the Economic Development for a Growing Economy Tax
22Credit Act may submit an application for an agreement under
23this Act after it terminates any existing agreement under the
24Economic Development for a Growing Economy Tax Credit Act with
25respect to the same address or location.
 

 

 

SB0157 Enrolled- 859 -LRB102 10128 HLH 16591 b

1    Section 110-25. Review of application. The Department
2shall determine which projects will benefit the State. In
3making its recommendation that an applicant's application for
4credit should or should not be accepted, which shall occur
5within a reasonable time frame as determined by the nature of
6the application, the Department shall determine that all the
7following conditions exist:
8        (1) the applicant intends to make the required
9    investment in the State and intends to hire the required
10    number of full-time employees;
11        (2) the applicant's project is economically sound,
12    will benefit the people of the State by increasing
13    opportunities for employment, and will strengthen the
14    economy of the State;
15        (3) awarding the credit will result in an overall
16    positive fiscal impact to the State, as certified by the
17    Department using the best available data; and
18        (4) the credit is not prohibited under this Act.
 
19    Section 110-30. Tax credit awards.
20    (a) Subject to the conditions set forth in this Act, a
21taxpayer is entitled to a credit against the tax imposed
22pursuant to subsections (a) and (b) of Section 201 of the
23Illinois Income Tax Act for a taxable year beginning on or
24after January 1, 2025 if the taxpayer is awarded a credit by
25the Department in accordance with an agreement under this Act.

 

 

SB0157 Enrolled- 860 -LRB102 10128 HLH 16591 b

1The Department has authority to award credits under this Act
2on and after January 1, 2023.
3    (b) A taxpayer may receive a tax credit against the tax
4imposed under subsections (a) and (b) of Section 201 of the
5Illinois Income Tax Act, not to exceed the sum of (i) 75% of
6the incremental income tax attributable to new employees at
7the applicant's project and (ii) 10% of the training costs of
8the new employees. If the project is located in an underserved
9area or an energy transition area, then the amount of the
10credit may not exceed the sum of (i) 100% of the incremental
11income tax attributable to new employees at the applicant's
12project; and (ii) 10% of the training costs of the new
13employees. The percentage of training costs includable in the
14calculation may be increased by an additional 15% for training
15costs associated with new employees that are recent (2 years
16or less) graduates, certificate holders, or credential
17recipients from an institution of higher education in
18Illinois, or, if the training is provided by an institution of
19higher education in Illinois, the Clean Jobs Workforce Network
20Program, or an apprenticeship and training program located in
21Illinois and approved by and registered with the United States
22Department of Labor's Bureau of Apprenticeship and Training.
23An applicant is also eligible for a training credit that shall
24not exceed 10% of the training costs of retained employees for
25the purpose of upskilling to meet the operational needs of the
26applicant or the project. The percentage of training costs

 

 

SB0157 Enrolled- 861 -LRB102 10128 HLH 16591 b

1includable in the calculation shall not exceed a total of 25%.
2If an applicant agrees to hire the required number of new
3employees, then the maximum amount of the credit for that
4applicant may be increased by an amount not to exceed 25% of
5the incremental income tax attributable to retained employees
6at the applicant's project; provided that, in order to receive
7the increase for retained employees, the applicant must, if
8applicable, meet or exceed the statewide baseline. If the
9Project is in an underserved area or an energy transition
10area, the maximum amount of the credit attributable to
11retained employees for the applicant may be increased to an
12amount not to exceed 50% of the incremental income tax
13attributable to retained employees at the applicant's project;
14provided that, in order to receive the increase for retained
15employees, the applicant must meet or exceed the statewide
16baseline. Credits awarded may include credit earned for
17incremental income tax withheld and training costs incurred by
18the taxpayer beginning on or after January 1, 2023. Credits so
19earned and certified by the Department may be applied against
20the tax imposed by subsections (a) and (b) of Section 201 of
21the Illinois Income Tax Act for taxable years beginning on or
22after January 1, 2025.
23    (c) MICRO Construction Jobs Credit. For construction wages
24associated with a project that qualified for a credit under
25subsection (b), the taxpayer may receive a tax credit against
26the tax imposed under subsections (a) and (b) of Section 201 of

 

 

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1the Illinois Income Tax Act in an amount equal to 50% of the
2incremental income tax attributable to construction wages paid
3in connection with construction of the project facilities, as
4a jobs credit for workers hired to construct the project.
5    The MICRO Construction Jobs Credit may not exceed 75% of
6the amount of the incremental income tax attributable to
7construction wages paid in connection with construction of the
8project facilities if the project is in an underserved area or
9an energy transition area.
10    (d) The Department shall certify to the Department of
11Revenue: (1) the identity of Taxpayers that are eligible for
12the MICRO Credit and MICRO Construction Jobs Credit; (2) the
13amount of the MICRO Credits and MICRO Construction Jobs
14Credits awarded in each calendar year; and (3) the amount of
15the MICRO Credit and MICRO Construction Jobs Credit claimed in
16each calendar year. MICRO Credits awarded may include credit
17earned for Incremental Income Tax withheld and Training Costs
18incurred by the Taxpayer beginning on or after January 1,
192023. Credits so earned and certified by the Department may be
20applied against the tax imposed by Section 201(a) and (b) of
21the Illinois Income Tax Act for taxable years beginning on or
22after January 1, 2025.
23    (e) Applicants seeking certification for a tax credits
24related to the construction of the project facilities in the
25State shall require the contractor to enter into a project
26labor agreement that conforms with the Project Labor

 

 

SB0157 Enrolled- 863 -LRB102 10128 HLH 16591 b

1Agreements Act.
2    (f) Any applicant issued a certificate for a tax credit or
3tax exemption under this Act must annually report to the
4Department the total project tax benefits received. Reports
5are due no later than May 31 of each year and shall cover the
6previous calendar year. The first report is for the 2023
7calendar year and is due no later than May 31, 2023.
8    (g) Nothing in this Act shall prohibit an award of credit
9to an applicant that uses a PEO if all other award criteria are
10satisfied.
11    (h) With respect to any portion of a Credit that is based
12on the incremental income tax attributable to new employees or
13retained employees, in lieu of the Credit allowed under this
14Act against the taxes imposed pursuant to subsections (a) and
15(b) of Section 201 of the Illinois Income Tax Act, a taxpayer
16that otherwise meets the criteria set forth in this Section,
17the taxpayer may elect to claim the credit, on or after January
181, 2025, against its obligation to pay over withholding under
19Section 704A of the Illinois Income Tax Act. The election
20shall be made in the manner prescribed by the Department of
21Revenue and once made shall be irrevocable.
 
22    Section 110-35. Relocation of jobs in Illinois. A taxpayer
23is not entitled to claim a credit provided by this Act with
24respect to any jobs that the Taxpayer relocates from one site
25in Illinois to another site in Illinois. Any full-time

 

 

SB0157 Enrolled- 864 -LRB102 10128 HLH 16591 b

1employee relocated to Illinois in connection with a qualifying
2project is deemed to be a new employee for purposes of this
3Act. Determinations under this Section shall be made by the
4Department.
 
5    Section 110-40. Amount and duration of the credits;
6limitation to amount of costs of specified items. The
7Department shall determine the amount and duration of the
8credit awarded under this Act, subject to the limitations set
9forth in this Act. For a project that qualified under
10paragraph (1), (2), or (4) of subsection (c) of Section
11110-20, the duration of the credit may not exceed 15 taxable
12years. For project that qualified under paragraph (3) of
13subsection (c) of Section 110-20, the duration of the credit
14may not exceed 10 taxable years. The credit may be stated as a
15percentage of the incremental income tax and training costs
16attributable to the applicant's project and may include a
17fixed dollar limitation.
18    Nothing in this Section shall prevent the Department, in
19consultation with the Department of Revenue, from adopting
20rules to extend the sunset of any earned, existing, and unused
21tax credit or credits a taxpayer may be in possession of.
 
22    Section 110-45. Contents of agreements with applicants.
23    (a) The Department shall enter into an agreement with an
24applicant that is awarded a credit under this Act. The

 

 

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1agreement shall include all of the following:
2        (1) A detailed description of the project that is the
3    subject of the agreement, including the location and
4    amount of the investment and jobs created or retained.
5        (2) The duration of the credit, the first taxable year
6    for which the credit may be awarded, and the first taxable
7    year in which the credit may be used by the taxpayer.
8        (3) The credit amount that will be allowed for each
9    taxable year.
10        (4) For a project qualified under paragraphs (1), (2),
11    or (4) of subsection (c) of Section 110-20, a requirement
12    that the taxpayer shall maintain operations at the project
13    location a minimum number of years not to exceed 15. For
14    project qualified under paragraph (3) of subsection (c) of
15    Section 110-20, a requirement that the taxpayer shall
16    maintain operations at the project location a minimum
17    number of years not to exceed 10.
18        (5) A specific method for determining the number of
19    new employees and, if applicable, retained employees,
20    employed during a taxable year.
21        (6) A requirement that the taxpayer shall annually
22    report to the Department the number of new employees, the
23    incremental income tax withheld in connection with the new
24    employees, and any other information the Department deems
25    necessary and appropriate to perform its duties under this
26    Act.

 

 

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1        (7) A requirement that the Director is authorized to
2    verify with the appropriate State agencies the amounts
3    reported under paragraph (6), and after doing so shall
4    issue a certificate to the taxpayer stating that the
5    amounts have been verified.
6        (8) A requirement that the taxpayer shall provide
7    written notification to the Director not more than 30 days
8    after the taxpayer makes or receives a proposal that would
9    transfer the taxpayer's State tax liability obligations to
10    a successor taxpayer.
11        (9) A detailed description of the number of new
12    employees to be hired, and the occupation and payroll of
13    full-time jobs to be created or retained because of the
14    project.
15        (10) The minimum investment the taxpayer will make in
16    capital improvements, the time period for placing the
17    property in service, and the designated location in
18    Illinois for the investment.
19        (11) A requirement that the taxpayer shall provide
20    written notification to the Director and the Director's
21    designee not more than 30 days after the taxpayer
22    determines that the minimum job creation or retention,
23    employment payroll, or investment no longer is or will be
24    achieved or maintained as set forth in the terms and
25    conditions of the agreement. Additionally, the
26    notification should outline to the Department the number

 

 

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1    of layoffs, date of the layoffs, and detail taxpayer's
2    efforts to provide career and training counseling for the
3    impacted workers with industry-related certifications and
4    trainings.
5        (12) A provision that, if the total number of new
6    employees falls below a specified level, the allowance of
7    credit shall be suspended until the number of new
8    employees equals or exceeds the agreement amount.
9        (13) If applicable, a provision that specifies the
10    statewide baseline at the time of application for retained
11    employees. Additionally, the agreement must have a
12    provision addressing if the total number retained
13    employees falls below the statewide baseline, the
14    allowance of the credit shall be suspended until the
15    number of retained employees equals or exceeds the
16    agreement amount.
17        (14) A detailed description of the items for which the
18    costs incurred by the Taxpayer will be included in the
19    limitation on the Credit.
20        (15) A provision stating that if the taxpayer fails to
21    meet either the investment or job creation and retention
22    requirements specified in the agreement during the entire
23    5-year period beginning on the first day of the first
24    taxable year in which the agreement is executed and ending
25    on the last day of the fifth taxable year after the
26    agreement is executed, then the agreement is automatically

 

 

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1    terminated on the last day of the fifth taxable year after
2    the agreement is executed, and the taxpayer is not
3    entitled to the award of any credits for any of that 5-year
4    period.
5        (16) A provision stating that if the taxpayer ceases
6    principal operations with the intent to permanently shut
7    down the project in the State during the term of the
8    Agreement, then the entire credit amount awarded to the
9    taxpayer prior to the date the taxpayer ceases principal
10    operations shall be returned to the Department and shall
11    be reallocated to the local workforce investment area in
12    which the project was located.
13        (17) A provision stating that the Taxpayer must
14    provide the reports outlined in Sections 110-50 and 110-55
15    on or before April 15 each year.
16        (18) A provision requiring the taxpayer to report
17    annually its contractual obligations or otherwise with a
18    recycling facility for its operations.
19        (19) Any other performance conditions or contract
20    provisions the Department determines are necessary or
21    appropriate.
22        (20) Each taxpayer under paragraph (1) of subsection
23    (c) of Section 110-20 above shall maintain labor
24    neutrality toward any union organizing campaign for any
25    employees of the taxpayer assigned to work on the premises
26    of the project. This paragraph shall not apply to a

 

 

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1    manufacturer who is subject to collective bargaining
2    agreement entered into prior to the taxpayer filing an
3    application pursuant to this Act.
4    (b) The Department shall post on its website the terms of
5each agreement entered into under this Act. Such information
6shall be posted within 10 days after entering into the
7agreement and must include the following:
8        (1) the name of the taxpayer;
9        (2) the location of the project;
10        (3) the estimated value of the credit;
11        (4) the number of new employee jobs and, if
12    applicable, number of retained employee jobs at the
13    project; and
14        (5) whether or not the project is in an underserved
15    area or energy transition area.
 
16    Section 110-50. Diversity report on the taxpayer's
17workforce, board of directors, and vendors.
18    (a) Each taxpayer with a workforce of 100 or more
19employees and with an agreement for a credit under this Act
20shall, starting on April 15, 2026, and every year thereafter
21prior to April 15, for which the Taxpayer has an Agreement
22under this Act, submit to the Department an annual report
23detailing the diversity of the taxpayer's own workforce,
24including full-time and part-time employees, contractors, and
25board of directors' membership. Any taxpayer seeking to claim

 

 

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1a credit under this Act that fails to timely submit the
2required report shall not receive a credit for that taxable
3year unless and until such report is finalized and submitted
4to the Department. The report should also address the
5Taxpayer's best efforts to meet or exceed the recruitment and
6hiring plan outlined in the application referenced in Section
7110-20. Those reports shall be submitted in the form and
8manner required by the Department.
9    (b) Vendor diversity and annual report. Each taxpayer with
10a workforce of 100 or more full-time employees shall, starting
11on April 15, 2025 and every year thereafter for which the
12taxpayer has an Agreement under this Act, report on the
13diversity of the vendors that it utilizes, for publication on
14the Department's website, and include the following
15information:
16        (1) a point of contact for potential vendors to
17    register with the taxpayer's project;
18        (2) certifications that the taxpayer accepts or
19    recognizes for minority and women-owned businesses as
20    entities;
21        (3) the taxpayer's goals to contract with diverse
22    vendors, if any, for the next fiscal year for the entire
23    budget of the taxpayer's project;
24        (4) for the last fiscal year, the actual contractual
25    spending for the entire budget of the project and the
26    actual spending for minority-owned businesses and

 

 

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1    women-owned businesses, expressed as a percentage of the
2    total budget for actual spending for the project;
3        (5) a narrative explaining the results of the report
4    and the taxpayer's plan to address the voluntary goals for
5    the next fiscal year; and
6        (6) a copy of the taxpayer's submission of vendor
7    diversity information to the federal government, including
8    but not limited to vendor diversity goals and actual
9    contractual spending for minority-and women-owned
10    businesses, if the Taxpayer is a federal contractor and is
11    required by the federal government to submit such
12    information.
 
13    Section 110-55. Sexual harassment policy report. Each
14taxpayer claiming a credit under this Act shall, prior to
15April 15 of each taxable year for which the taxpayer claims a
16credit under this Act, submit to the Department a report
17detailing that taxpayer's sexual harassment policy, which
18contains, at a minimum, the following information: (i) the
19illegality of sexual harassment; (ii) the definition of sexual
20harassment under State law; (iii) a description of sexual
21harassment, utilizing examples; (iv) the vendor's internal
22complaint process, including penalties; (v) the legal recourse
23and investigative and complaint processes available through
24the Department; (vi) directions on how to contact the
25Department; and (vii) protection against retaliation as

 

 

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1provided by Section 6-101 of the Illinois Human Rights Act. A
2copy of the policy shall be provided to the Department upon
3request. The reports required under this Section shall be
4submitted in a form and manner determined by the Department.
 
5    Section 110-60. Certificate of verification; submission to
6the Department of Revenue.
7    (a) A taxpayer claiming a credit under this Act shall
8submit to the Department of Revenue a copy of the Director's
9certificate of verification under this Act for the taxable
10year. However, failure to submit a copy of the certificate
11with the taxpayer's tax return shall not invalidate a claim
12for a credit.
13    (b) For a taxpayer to be eligible for a certificate of
14verification, the taxpayer shall provide proof as required by
15the Department, prior to the end of each calendar year,
16including, but not limited to, attestation by the taxpayer
17that:
18        (1) The project has achieved the level of new employee
19    jobs specified in the agreement.
20        (2) The project has achieved the level of annual
21    payroll in Illinois specified in its agreement.
22        (3) The project has achieved the level of capital
23    improvements in Illinois specified in its agreement.
 
24    Section 110-65. Certified payroll.

 

 

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1    (a) Each contractor and subcontractor that is engaged in
2construction work on project facilities for a taxpayer who
3seeks to apply for a MICRO Construction Jobs Credit shall:
4        (1) make and keep, for a period of 5 years from the
5    date of the last payment made on a contract or subcontract
6    for construction of facilities for a project pursuant to
7    an agreement, records of all laborers and other workers
8    employed by the contractor or subcontractor on the
9    project; the records shall include:
10            (A) the worker's name;
11            (B) the worker's address;
12            (C) the worker's telephone number, if available;
13            (D) the worker's social security number;
14            (E) the worker's classification or
15        classifications;
16            (F) the worker's gross and net wages paid in each
17        pay period;
18            (G) the worker's number of hours worked in each
19        day;
20            (H) the worker's starting and ending times of work
21        each day;
22            (I) the worker's hourly wage rate; and
23            (J) the worker's hourly overtime wage rate; and
24        (2) no later than the 15th day of each calendar month,
25    provide a certified payroll for the immediately preceding
26    month to the taxpayer in charge of the project; within 5

 

 

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1    business days after receiving the certified payroll, the
2    Taxpayer shall file the certified payroll with the
3    Department of Labor and the Department; a certified
4    payroll must be filed for only those calendar months
5    during which construction on the project facilities has
6    occurred; the certified payroll shall consist of a
7    complete copy of the records identified in paragraph (1),
8    but may exclude the starting and ending times of work each
9    day; the certified payroll shall be accompanied by a
10    statement signed by the contractor or subcontractor or an
11    officer, employee, or agent of the contractor or
12    subcontractor which avers that:
13            (A) he or she has examined the certified payroll
14        records required to be submitted by the Act and such
15        records are true and accurate; and
16            (B) the contractor or subcontractor is aware that
17        filing a certified payroll that he or she knows to be
18        false is a Class A misdemeanor.
19    A general contractor is not prohibited from relying on a
20certified payroll of a lower-tier subcontractor, provided the
21general contractor does not knowingly rely upon a
22subcontractor's false certification.
23    (b) Any contractor or subcontractor subject to this
24Section, and any officer, employee, or agent of such
25contractor or subcontractor whose duty as an officer,
26employee, or agent it is to file a certified payroll under this

 

 

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1Section, who willfully fails to file such a certified payroll,
2on or before the date such certified payroll is required to be
3filed and any person who willfully files a false certified
4payroll as to any material fact is in violation of this Act and
5guilty of a Class A misdemeanor and may be enforced by the
6Illinois Department of Labor or the Department. The Attorney
7General shall represented the Illinois Department of Labor or
8the Department in the proceeding.
9    (c) The taxpayer in charge of the project shall keep the
10records submitted in accordance with this Section for a period
11of 5 years from the date of the last payment for work on a
12contract or subcontract for the project.
13    (d) The records submitted in accordance with this Section
14shall be considered public records, except an employee's
15address, telephone number, and social security number, which
16shall be redacted. The records shall be made publicly
17available in accordance with the Freedom of Information Act.
18The contractor or subcontractor shall submit reports to the
19Department of Labor electronically that meet the requirements
20of this subsection and shall share the information with the
21Department to comply with the awarding of the MICRO
22Construction Jobs Credit. A contractor, subcontractor, or
23public body may retain records required under this Section in
24paper or electronic format.
25    (e) Upon 7 business days' notice, the contractor and each
26subcontractor shall make available for inspection and copying

 

 

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1at a location within this State during reasonable hours, the
2records identified in paragraph (1) of this subsection to the
3Taxpayer in charge of the Project, its officers and agents,
4the Director of the Department of Labor and his/her deputies
5and agents, and to federal, State, or local law enforcement
6agencies and prosecutors.
 
7    Section 110-70. Noncompliance; notice; assessment. If the
8Director determines that a taxpayer who has received a credit
9under this Act is not complying with the requirements of the
10agreement or all of the provisions of this Act, the Director
11shall provide notice to the taxpayer of the alleged
12noncompliance and allow the taxpayer a hearing under the
13provisions of the Illinois Administrative Procedure Act. If,
14after such notice and any hearing, the Director determines
15that a noncompliance exists, the Director shall issue to the
16Department of Revenue notice to that effect, stating the
17noncompliance date. If, during the term of an agreement, the
18taxpayer ceases operations at a project location that is the
19subject of that agreement with the intent to terminate
20operations in the State, the Department and the Department of
21Revenue shall recapture from the taxpayer the entire credit
22amount awarded under that agreement prior to the date the
23taxpayer ceases operations. The Department shall, subject to
24appropriation, reallocate the recaptured amounts within 6
25months to the local workforce investment area in which the

 

 

SB0157 Enrolled- 877 -LRB102 10128 HLH 16591 b

1project was located for purposes of workforce development,
2expanded opportunities for unemployed persons, and expanded
3opportunities for women and minority persons in the workforce.
4The taxpayer will be ineligible for future funding under other
5State tax credit or exemption programs for a 36-month period.
6Noncompliance of the agreement with result in a default of
7other agreements for State tax credits and exemption programs
8for the project.
 
9    Section 110-75. Annual report.
10    (a) On or before July 1 each year, the Department shall
11submit a report on the tax credit program under this Act to the
12Governor and the General Assembly. The report shall include
13information on the number of agreements that were entered into
14under this Act during the preceding calendar year, a
15description of the project that is the subject of each
16agreement, an update on the status of projects under
17agreements entered into before the preceding calendar year,
18and the sum of the credits awarded under this Act. A copy of
19the report shall be delivered to the Governor and to each
20member of the General Assembly.
21    (b) The report must include, for each agreement:
22        (1) the original estimates of the value of the credit
23    and the number of new employee jobs to be created and, if
24    applicable, the number of retained employee jobs;
25        (2) any relevant modifications to existing agreements;

 

 

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1        (3) a statement of the progress made by each taxpayer
2    in meeting the terms of the original agreement;
3        (4) a statement of wages paid to new employees and, if
4    applicable, retained employees in the State; and
5        (5) a copy of the original agreement or link to the
6    agreement on the Department's website.
 
7    Section 110-80. Evaluation of tax credit program. The
8Department shall evaluate the tax credit program every three
9years and issue a report. The evaluation shall include an
10assessment of the effectiveness of the program in creating new
11jobs in Illinois and of the revenue impact of the program and
12may include a review of the practices and experiences of other
13states with similar programs. The Director shall submit a
14report on the evaluation to the Governor and the General
15Assembly three years after the Effective Date of the Act and
16every three years thereafter.
 
17    Section 110-85. Sunset of new agreements. The Department
18shall not enter into any new Agreements under the provisions
19of this Act after December 31, 2028.
 
20    Section 110-95. Utility tax exemptions for MICRO projects.
21The Department may certify a taxpayer with a credit for a
22project that meets the qualifications under paragraphs (1),
23(2), and (4) of subsection (c) of Section 110-20, subject to an

 

 

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1agreement under this Act, for an exemption from the tax
2imposed at the project site by Section 2-4 of the Electricity
3Excise Tax Law. To receive such certification, the taxpayer
4must be registered to self-assess that tax. The taxpayer is
5also exempt from any additional charges added to the
6taxpayer's utility bills at the project site as a pass-on of
7State utility taxes under Section 9-222 of the Public
8Utilities Act. The taxpayer must meet any other the criteria
9for certification set by the Department.
10    The Department shall determine the period during which the
11exemption from the Electricity Excise Tax Law and the charges
12imposed under Section 9-222 of the Public Utilities Act are in
13effect, which shall not exceed 10 years from the date of the
14taxpayer's initial receipt of certification from the
15Department under this Section.
16    The Department is authorized to adopt rules to carry out
17the provisions of this Section, including procedures to apply
18for the exemptions; to define the amounts and types of
19eligible investments that an applicant must make in order to
20receive electricity excise tax exemptions or exemptions from
21the additional charges imposed under Section 9-222 and the
22Public Utilities Act; to approve such electricity excise tax
23exemptions for applicants whose investments are not yet placed
24in service; and to require that an applicant granted an
25electricity excise tax exemption or an exemption from
26additional charges under Section 9-222 of the Public Utilities

 

 

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1Act repay the exempted amount if the Applicant fails to comply
2with the terms and conditions of the agreement.
3    Upon certification by the Department under this Section,
4the Department shall notify the Department of Revenue of the
5certification. The Department of Revenue shall notify the
6public utilities of the exempt status of any taxpayer
7certified for exemption under this Act from the electricity
8excise tax or pass-on charges. The exemption status shall take
9effect within 3 months after certification of the taxpayer and
10notice to the Department of Revenue by the Department.
 
11    Section 110-100. Investment tax credits for MICRO
12projects. Subject to the conditions set forth in this Act, a
13Taxpayer is entitled to an investment tax credit toward taxes
14imposed pursuant to subsections (a) and (b) of Section 201 of
15the Illinois Income Tax Act for a taxable year in which the
16Taxpayer, in accordance with an Agreement under this Act for
17that taxable year, invests in qualified property which is
18placed in service at the site of a project. The Department has
19authority to certify the amount of such investment tax credits
20to the Department of Revenue. The credit shall be 0.5% of the
21basis for such property and shall be determined in accordance
22with Section 239 of the Illinois Income Tax Act. The credit
23shall be available only in the taxable year in which the
24property is placed in service and shall not be allowed to the
25extent that it would reduce a taxpayer's liability for the tax

 

 

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1imposed by subsections (a) and (b) of Section 201 of the
2Illinois Income Tax Act to below zero. Unused credit may be
3carried forward in accordance with Section 239 of the Illinois
4Income Tax Act for use in future taxable years. Any taxpayer
5qualifying for the Investment Tax Credit shall not be eligible
6for either the investment tax credits in Section 201(e), (f),
7or (h) of the Illinois Income Tax Act.
 
8    Section 110-105. Building materials exemptions for project
9sites.
10    (a) The Department may certify a Taxpayer with a project
11that meets the qualifications under paragraphs (1), (2), or
12(4) of subsection (c) of Section 110-20, subject to an
13agreement under this Act, for an exemption from any State or
14local use tax or retailers' occupation tax on building
15materials for the construction of its project facilities. The
16taxpayer must meet any criteria for certification set by the
17Department under this Act.
18    The Department shall determine the period during which the
19exemption from State and local use tax and retailers'
20occupation tax are in effect, but in no event shall exceed 5
21years in accordance with Section 5m of the Retailers'
22Occupation Tax Act.
23    The Department is authorized to promulgate rules and
24regulations to carry out the provisions of this Section,
25including procedures to apply for the exemption; to define the

 

 

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1amounts and types of eligible investments that an applicant
2must make in order to receive tax exemption; to approve such
3tax exemption for an applicant whose investments are not yet
4placed in service; and to require that an applicant granted
5exemption repay the exempted amount if the applicant fails to
6comply with the terms and conditions of the agreement with the
7Department.
8    Upon certification by the Department under this Section,
9the Department shall notify the Department of Revenue of the
10certification. The exemption status shall take effect within 3
11months after certification of the taxpayer and notice to the
12Department of Revenue by the Department.
 
13    Section 110-905. The Illinois Income Tax Act is amended by
14changing Section 704A and by adding Sections 238 and 239 as
15follows:
 
16    (35 ILCS 5/238 new)
17    Sec. 238. MICRO credits.
18(a) For tax years beginning on or after January 1, 2025, a
19taxpayer who has entered into an agreement under the
20Manufacturing Illinois Chips for Real Opportunity (MICRO) Act
21is entitled to a credit against the taxes imposed under
22subsections (a) and (b) of Section 201 of this Act in an amount
23to be determined in the Agreement. The taxpayer may elect to
24claim the credit, on or after January 1, 2026, against its

 

 

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1obligation to pay over withholding under Section 704A of this
2Act as provided in this Section. If the taxpayer is a
3partnership or Subchapter S corporation, the credit shall be
4allowed to the partners or shareholders in accordance with the
5determination of income and distributive share of income under
6Sections 702 and 704 and subchapter S of the Internal Revenue
7Code. The Department, in cooperation with the Department of
8Commerce and Economic Opportunity, shall adopt rules to
9enforce and administer the provisions of this Section. This
10Section is exempt from the provisions of Section 250 of this
11Act.
12    (b) The credit is subject to the conditions set forth in
13the agreement and the following limitations:
14        (1) The tax credit may be in the form of either or both
15    the MICRO Illinois Credit or the MICRO Construction Jobs
16    Credit and shall not exceed the percentage of incremental
17    income tax and percentage of training costs permitted in
18    that Act and in the agreement with respect to the project.
19        (2) The amount of the credit allowed during a tax year
20    plus the sum of all amounts allowed in prior tax years
21    shall not exceed the maximum amount of credit established
22    in the agreement.
23        (3) The amount of the credit shall be determined on an
24    annual basis. Except as applied in a carryover year
25    pursuant to paragraph (4), the credit may not be applied
26    against any State income tax liability in more than 15

 

 

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1    taxable years.
2        (4) The credit may not exceed the amount of taxes
3    imposed pursuant to subsections (a) and (b) of Section 201
4    of this Act. Any credit that is unused in the year the
5    credit is computed may be carried forward and applied to
6    the tax liability of the 5 taxable years following the
7    excess credit year. The credit shall be applied to the
8    earliest year for which there is a tax liability. If there
9    are credits from more than one tax year that are available
10    to offset a liability, the earlier credit shall be applied
11    first.
12        (5) No credit shall be allowed with respect to any
13    agreement for any taxable year ending after the
14    noncompliance date. Upon receiving notification by the
15    Department of Commerce and Economic Opportunity of the
16    noncompliance of a taxpayer with an agreement, the
17    Department shall notify the taxpayer that no credit is
18    allowed with respect to that agreement for any taxable
19    year ending after the noncompliance date, as stated in
20    such notification. If any credit has been allowed with
21    respect to an agreement for a taxable year ending after
22    the noncompliance date for that agreement, any refund paid
23    to the taxpayer for that taxable year shall, to the extent
24    of that credit allowed, be an erroneous refund within the
25    meaning of Section 912 of this Act.
26        If, during any taxable year, a taxpayer ceases

 

 

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1    operations at a project location that is the subject of
2    that agreement with the intent to terminate operations in
3    the State, the tax imposed under subsections (a) and (b)
4    of Section 201 of this Act for such taxable year shall be
5    increased by the amount of any credit allowed under the
6    Agreement for that Project location prior to the date the
7    Taxpayer ceases operations.
8        (6) Instead of claiming the credit against the taxes
9    imposed under subsections (a) and (b) of Section 201 of
10    this Act, with respect to the portion of a MICRO Illinois
11    credit that is calculated based on the Incremental Income
12    Tax attributable to new employees and retained employees,
13    the taxpayer may elect, in accordance with the
14    Manufacturing Illinois Chips for Real Opportunity (MICRO)
15    Act, to claim the credit, on or after January 1, 2026,
16    against its obligation to pay over withholding under
17    Section 704A of the Illinois Income Tax Act. Any credit
18    for which a Taxpayer makes such an election shall not be
19    claimed against the taxes imposed under subsections (a)
20    and (b) of Section 201 of this Act.
 
21    (35 ILCS 5/239 new)
22    Sec. 239. MICRO Investment Tax credits.
23    (a) For tax years beginning on or after January 1, 2025, a
24taxpayer shall be allowed a credit against the tax imposed by
25subsections (a) and (b) of Section 201 for investment in

 

 

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1qualified property which is placed in service at the site of a
2project that is subject to an agreement between the taxpayer
3and the Department of Commerce and Economic Opportunity
4pursuant to the Manufacturing Illinois Chips for Real
5Opportunity (MICRO) Act. If the taxpayer is a partnership or a
6Subchapter S corporation, the credit shall be allowed to the
7partners or shareholders in accordance with the determination
8of income and distributive share of income under Sections 702
9and 704 and subchapter S of the Internal Revenue Code. The
10credit shall be 0.5% of the basis for such property. The credit
11shall be available only in the taxable year in which the
12property is placed in service and shall not be allowed to the
13extent that it would reduce a taxpayer's liability for the tax
14imposed by subsections (a) and (b) of Section 201 to below
15zero. The credit shall be allowed for the tax year in which the
16property is placed in service, or, if the amount of the credit
17exceeds the tax liability for that year, whether it exceeds
18the original liability or the liability as later amended, such
19excess may be carried forward and applied to the tax liability
20of the 5 taxable years following the excess credit year. The
21credit shall be applied to the earliest year for which there is
22a liability. If there is credit from more than one tax year
23that is available to offset a liability, the credit accruing
24first in time shall be applied first.
25    (b) The term qualified property means property which:
26        (1) is tangible, whether new or used, including

 

 

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1    buildings and structural components of buildings;
2        (2) is depreciable pursuant to Section 167 of the
3    Internal Revenue Code, except that "3-year property" as
4    defined in Section 168(c)(2)(A) of that Code is not
5    eligible for the credit provided by this Section;
6        (3) is acquired by purchase as defined in Section
7    179(d) of the Internal Revenue Code;
8        (4) is used at the site of the MICRO Illinois project
9    by the taxpayer; and
10        (5) has not been previously used in Illinois in such a
11    manner and by such a person as would qualify for the credit
12    provided by this Section.
13    (c) The basis of qualified property shall be the basis
14used to compute the depreciation deduction for federal income
15tax purposes.
16    (d) If the basis of the property for federal income tax
17depreciation purposes is increased after it has been placed in
18service at the site of the project by the taxpayer, the amount
19of such increase shall be deemed property placed in service on
20the date of such increase in basis.
21    (e) The term "placed in service" shall have the same
22meaning as under Section 46 of the Internal Revenue Code.
23    (f) If during any taxable year, any property ceases to be
24qualified property in the hands of the taxpayer within 48
25months after being placed in service, or the situs of any
26qualified property is moved from the project site within 48

 

 

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1months after being placed in service, the tax imposed under
2subsections (a) and (b) of Section 201 for such taxable year
3shall be increased. Such increase shall be determined by (i)
4recomputing the investment credit which would have been
5allowed for the year in which credit for such property was
6originally allowed by eliminating such property from such
7computation, and (ii) subtracting such recomputed credit from
8the amount of credit previously allowed. For the purposes of
9this subsection (f), a reduction of the basis of qualified
10property resulting from a redetermination of the purchase
11price shall be deemed a disposition of qualified property to
12the extent of such reduction.
 
13    (35 ILCS 5/704A)
14    Sec. 704A. Employer's return and payment of tax withheld.
15    (a) In general, every employer who deducts and withholds
16or is required to deduct and withhold tax under this Act on or
17after January 1, 2008 shall make those payments and returns as
18provided in this Section.
19    (b) Returns. Every employer shall, in the form and manner
20required by the Department, make returns with respect to taxes
21withheld or required to be withheld under this Article 7 for
22each quarter beginning on or after January 1, 2008, on or
23before the last day of the first month following the close of
24that quarter.
25    (c) Payments. With respect to amounts withheld or required

 

 

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1to be withheld on or after January 1, 2008:
2        (1) Semi-weekly payments. For each calendar year, each
3    employer who withheld or was required to withhold more
4    than $12,000 during the one-year period ending on June 30
5    of the immediately preceding calendar year, payment must
6    be made:
7            (A) on or before each Friday of the calendar year,
8        for taxes withheld or required to be withheld on the
9        immediately preceding Saturday, Sunday, Monday, or
10        Tuesday;
11            (B) on or before each Wednesday of the calendar
12        year, for taxes withheld or required to be withheld on
13        the immediately preceding Wednesday, Thursday, or
14        Friday.
15        Beginning with calendar year 2011, payments made under
16    this paragraph (1) of subsection (c) must be made by
17    electronic funds transfer.
18        (2) Semi-weekly payments. Any employer who withholds
19    or is required to withhold more than $12,000 in any
20    quarter of a calendar year is required to make payments on
21    the dates set forth under item (1) of this subsection (c)
22    for each remaining quarter of that calendar year and for
23    the subsequent calendar year.
24        (3) Monthly payments. Each employer, other than an
25    employer described in items (1) or (2) of this subsection,
26    shall pay to the Department, on or before the 15th day of

 

 

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1    each month the taxes withheld or required to be withheld
2    during the immediately preceding month.
3        (4) Payments with returns. Each employer shall pay to
4    the Department, on or before the due date for each return
5    required to be filed under this Section, any tax withheld
6    or required to be withheld during the period for which the
7    return is due and not previously paid to the Department.
8    (d) Regulatory authority. The Department may, by rule:
9        (1) Permit employers, in lieu of the requirements of
10    subsections (b) and (c), to file annual returns due on or
11    before January 31 of the year for taxes withheld or
12    required to be withheld during the previous calendar year
13    and, if the aggregate amounts required to be withheld by
14    the employer under this Article 7 (other than amounts
15    required to be withheld under Section 709.5) do not exceed
16    $1,000 for the previous calendar year, to pay the taxes
17    required to be shown on each such return no later than the
18    due date for such return.
19        (2) Provide that any payment required to be made under
20    subsection (c)(1) or (c)(2) is deemed to be timely to the
21    extent paid by electronic funds transfer on or before the
22    due date for deposit of federal income taxes withheld
23    from, or federal employment taxes due with respect to, the
24    wages from which the Illinois taxes were withheld.
25        (3) Designate one or more depositories to which
26    payment of taxes required to be withheld under this

 

 

SB0157 Enrolled- 891 -LRB102 10128 HLH 16591 b

1    Article 7 must be paid by some or all employers.
2        (4) Increase the threshold dollar amounts at which
3    employers are required to make semi-weekly payments under
4    subsection (c)(1) or (c)(2).
5    (e) Annual return and payment. Every employer who deducts
6and withholds or is required to deduct and withhold tax from a
7person engaged in domestic service employment, as that term is
8defined in Section 3510 of the Internal Revenue Code, may
9comply with the requirements of this Section with respect to
10such employees by filing an annual return and paying the taxes
11required to be deducted and withheld on or before the 15th day
12of the fourth month following the close of the employer's
13taxable year. The Department may allow the employer's return
14to be submitted with the employer's individual income tax
15return or to be submitted with a return due from the employer
16under Section 1400.2 of the Unemployment Insurance Act.
17    (f) Magnetic media and electronic filing. With respect to
18taxes withheld in calendar years prior to 2017, any W-2 Form
19that, under the Internal Revenue Code and regulations
20promulgated thereunder, is required to be submitted to the
21Internal Revenue Service on magnetic media or electronically
22must also be submitted to the Department on magnetic media or
23electronically for Illinois purposes, if required by the
24Department.
25    With respect to taxes withheld in 2017 and subsequent
26calendar years, the Department may, by rule, require that any

 

 

SB0157 Enrolled- 892 -LRB102 10128 HLH 16591 b

1return (including any amended return) under this Section and
2any W-2 Form that is required to be submitted to the Department
3must be submitted on magnetic media or electronically.
4    The due date for submitting W-2 Forms shall be as
5prescribed by the Department by rule.
6    (g) For amounts deducted or withheld after December 31,
72009, a taxpayer who makes an election under subsection (f) of
8Section 5-15 of the Economic Development for a Growing Economy
9Tax Credit Act for a taxable year shall be allowed a credit
10against payments due under this Section for amounts withheld
11during the first calendar year beginning after the end of that
12taxable year equal to the amount of the credit for the
13incremental income tax attributable to full-time employees of
14the taxpayer awarded to the taxpayer by the Department of
15Commerce and Economic Opportunity under the Economic
16Development for a Growing Economy Tax Credit Act for the
17taxable year and credits not previously claimed and allowed to
18be carried forward under Section 211(4) of this Act as
19provided in subsection (f) of Section 5-15 of the Economic
20Development for a Growing Economy Tax Credit Act. The credit
21or credits may not reduce the taxpayer's obligation for any
22payment due under this Section to less than zero. If the amount
23of the credit or credits exceeds the total payments due under
24this Section with respect to amounts withheld during the
25calendar year, the excess may be carried forward and applied
26against the taxpayer's liability under this Section in the

 

 

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1succeeding calendar years as allowed to be carried forward
2under paragraph (4) of Section 211 of this Act. The credit or
3credits shall be applied to the earliest year for which there
4is a tax liability. If there are credits from more than one
5taxable year that are available to offset a liability, the
6earlier credit shall be applied first. Each employer who
7deducts and withholds or is required to deduct and withhold
8tax under this Act and who retains income tax withholdings
9under subsection (f) of Section 5-15 of the Economic
10Development for a Growing Economy Tax Credit Act must make a
11return with respect to such taxes and retained amounts in the
12form and manner that the Department, by rule, requires and pay
13to the Department or to a depositary designated by the
14Department those withheld taxes not retained by the taxpayer.
15For purposes of this subsection (g), the term taxpayer shall
16include taxpayer and members of the taxpayer's unitary
17business group as defined under paragraph (27) of subsection
18(a) of Section 1501 of this Act. This Section is exempt from
19the provisions of Section 250 of this Act. No credit awarded
20under the Economic Development for a Growing Economy Tax
21Credit Act for agreements entered into on or after January 1,
222015 may be credited against payments due under this Section.
23    (g-1) For amounts deducted or withheld after December 31,
242024, a taxpayer who makes an election under the Reimagining
25Electric Vehicles in Illinois Act shall be allowed a credit
26against payments due under this Section for amounts withheld

 

 

SB0157 Enrolled- 894 -LRB102 10128 HLH 16591 b

1during the first quarterly reporting period beginning after
2the certificate is issued equal to the portion of the REV
3Illinois Credit attributable to the incremental income tax
4attributable to new employees and retained employees as
5certified by the Department of Commerce and Economic
6Opportunity pursuant to an agreement with the taxpayer under
7the Reimagining Electric Vehicles in Illinois Act for the
8taxable year. The credit or credits may not reduce the
9taxpayer's obligation for any payment due under this Section
10to less than zero. If the amount of the credit or credits
11exceeds the total payments due under this Section with respect
12to amounts withheld during the quarterly reporting period, the
13excess may be carried forward and applied against the
14taxpayer's liability under this Section in the succeeding
15quarterly reporting period as allowed to be carried forward
16under paragraph (4) of Section 211 of this Act. The credit or
17credits shall be applied to the earliest quarterly reporting
18period for which there is a tax liability. If there are credits
19from more than one quarterly reporting period that are
20available to offset a liability, the earlier credit shall be
21applied first. Each employer who deducts and withholds or is
22required to deduct and withhold tax under this Act and who
23retains income tax withholdings this subsection must make a
24return with respect to such taxes and retained amounts in the
25form and manner that the Department, by rule, requires and pay
26to the Department or to a depositary designated by the

 

 

SB0157 Enrolled- 895 -LRB102 10128 HLH 16591 b

1Department those withheld taxes not retained by the taxpayer.
2For purposes of this subsection (g-1), the term taxpayer shall
3include taxpayer and members of the taxpayer's unitary
4business group as defined under paragraph (27) of subsection
5(a) of Section 1501 of this Act. This Section is exempt from
6the provisions of Section 250 of this Act.
7    (g-2) For amounts deducted or withheld after December 31,
82024, a taxpayer who makes an election under the Manufacturing
9Illinois Chips for Real Opportunity (MICRO) Act shall be
10allowed a credit against payments due under this Section for
11amounts withheld during the first quarterly reporting period
12beginning after the certificate is issued equal to the portion
13of the MICRO Illinois Credit attributable to the incremental
14income tax attributable to new employees and retained
15employees as certified by the Department of Commerce and
16Economic Opportunity pursuant to an agreement with the
17taxpayer under the Manufacturing Illinois Chips for Real
18Opportunity (MICRO) Act for the taxable year. The credit or
19credits may not reduce the taxpayer's obligation for any
20payment due under this Section to less than zero. If the amount
21of the credit or credits exceeds the total payments due under
22this Section with respect to amounts withheld during the
23quarterly reporting period, the excess may be carried forward
24and applied against the taxpayer's liability under this
25Section in the succeeding quarterly reporting period as
26allowed to be carried forward under paragraph (4) of Section

 

 

SB0157 Enrolled- 896 -LRB102 10128 HLH 16591 b

1211 of this Act. The credit or credits shall be applied to the
2earliest quarterly reporting period for which there is a tax
3liability. If there are credits from more than one quarterly
4reporting period that are available to offset a liability, the
5earlier credit shall be applied first. Each employer who
6deducts and withholds or is required to deduct and withhold
7tax under this Act and who retains income tax withholdings
8this subsection must make a return with respect to such taxes
9and retained amounts in the form and manner that the
10Department, by rule, requires and pay to the Department or to a
11depositary designated by the Department those withheld taxes
12not retained by the taxpayer. For purposes of this subsection,
13the term taxpayer shall include taxpayer and members of the
14taxpayer's unitary business group as defined under paragraph
15(27) of subsection (a) of Section 1501 of this Act. This
16Section is exempt from the provisions of Section 250 of this
17Act.
18    (h) An employer may claim a credit against payments due
19under this Section for amounts withheld during the first
20calendar year ending after the date on which a tax credit
21certificate was issued under Section 35 of the Small Business
22Job Creation Tax Credit Act. The credit shall be equal to the
23amount shown on the certificate, but may not reduce the
24taxpayer's obligation for any payment due under this Section
25to less than zero. If the amount of the credit exceeds the
26total payments due under this Section with respect to amounts

 

 

SB0157 Enrolled- 897 -LRB102 10128 HLH 16591 b

1withheld during the calendar year, the excess may be carried
2forward and applied against the taxpayer's liability under
3this Section in the 5 succeeding calendar years. The credit
4shall be applied to the earliest year for which there is a tax
5liability. If there are credits from more than one calendar
6year that are available to offset a liability, the earlier
7credit shall be applied first. This Section is exempt from the
8provisions of Section 250 of this Act.
9    (i) Each employer with 50 or fewer full-time equivalent
10employees during the reporting period may claim a credit
11against the payments due under this Section for each qualified
12employee in an amount equal to the maximum credit allowable.
13The credit may be taken against payments due for reporting
14periods that begin on or after January 1, 2020, and end on or
15before December 31, 2027. An employer may not claim a credit
16for an employee who has worked fewer than 90 consecutive days
17immediately preceding the reporting period; however, such
18credits may accrue during that 90-day period and be claimed
19against payments under this Section for future reporting
20periods after the employee has worked for the employer at
21least 90 consecutive days. In no event may the credit exceed
22the employer's liability for the reporting period. Each
23employer who deducts and withholds or is required to deduct
24and withhold tax under this Act and who retains income tax
25withholdings under this subsection must make a return with
26respect to such taxes and retained amounts in the form and

 

 

SB0157 Enrolled- 898 -LRB102 10128 HLH 16591 b

1manner that the Department, by rule, requires and pay to the
2Department or to a depositary designated by the Department
3those withheld taxes not retained by the employer.
4    For each reporting period, the employer may not claim a
5credit or credits for more employees than the number of
6employees making less than the minimum or reduced wage for the
7current calendar year during the last reporting period of the
8preceding calendar year. Notwithstanding any other provision
9of this subsection, an employer shall not be eligible for
10credits for a reporting period unless the average wage paid by
11the employer per employee for all employees making less than
12$55,000 during the reporting period is greater than the
13average wage paid by the employer per employee for all
14employees making less than $55,000 during the same reporting
15period of the prior calendar year.
16    For purposes of this subsection (i):
17    "Compensation paid in Illinois" has the meaning ascribed
18to that term under Section 304(a)(2)(B) of this Act.
19    "Employer" and "employee" have the meaning ascribed to
20those terms in the Minimum Wage Law, except that "employee"
21also includes employees who work for an employer with fewer
22than 4 employees. Employers that operate more than one
23establishment pursuant to a franchise agreement or that
24constitute members of a unitary business group shall aggregate
25their employees for purposes of determining eligibility for
26the credit.

 

 

SB0157 Enrolled- 899 -LRB102 10128 HLH 16591 b

1    "Full-time equivalent employees" means the ratio of the
2number of paid hours during the reporting period and the
3number of working hours in that period.
4    "Maximum credit" means the percentage listed below of the
5difference between the amount of compensation paid in Illinois
6to employees who are paid not more than the required minimum
7wage reduced by the amount of compensation paid in Illinois to
8employees who were paid less than the current required minimum
9wage during the reporting period prior to each increase in the
10required minimum wage on January 1. If an employer pays an
11employee more than the required minimum wage and that employee
12previously earned less than the required minimum wage, the
13employer may include the portion that does not exceed the
14required minimum wage as compensation paid in Illinois to
15employees who are paid not more than the required minimum
16wage.
17        (1) 25% for reporting periods beginning on or after
18    January 1, 2020 and ending on or before December 31, 2020;
19        (2) 21% for reporting periods beginning on or after
20    January 1, 2021 and ending on or before December 31, 2021;
21        (3) 17% for reporting periods beginning on or after
22    January 1, 2022 and ending on or before December 31, 2022;
23        (4) 13% for reporting periods beginning on or after
24    January 1, 2023 and ending on or before December 31, 2023;
25        (5) 9% for reporting periods beginning on or after
26    January 1, 2024 and ending on or before December 31, 2024;

 

 

SB0157 Enrolled- 900 -LRB102 10128 HLH 16591 b

1        (6) 5% for reporting periods beginning on or after
2    January 1, 2025 and ending on or before December 31, 2025.
3    The amount computed under this subsection may continue to
4be claimed for reporting periods beginning on or after January
51, 2026 and:
6        (A) ending on or before December 31, 2026 for
7    employers with more than 5 employees; or
8        (B) ending on or before December 31, 2027 for
9    employers with no more than 5 employees.
10    "Qualified employee" means an employee who is paid not
11more than the required minimum wage and has an average wage
12paid per hour by the employer during the reporting period
13equal to or greater than his or her average wage paid per hour
14by the employer during each reporting period for the
15immediately preceding 12 months. A new qualified employee is
16deemed to have earned the required minimum wage in the
17preceding reporting period.
18    "Reporting period" means the quarter for which a return is
19required to be filed under subsection (b) of this Section.
20(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21.)
 
21    Section 110-907. The Use Tax Act is amended by changing
22Section 12 as follows:
 
23    (35 ILCS 105/12)  (from Ch. 120, par. 439.12)
24    Sec. 12. Applicability of Retailers' Occupation Tax Act

 

 

SB0157 Enrolled- 901 -LRB102 10128 HLH 16591 b

1and Uniform Penalty and Interest Act. All of the provisions of
2Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
32-54, 2a, 2b, 2c, 3, 4 (except that the time limitation
4provisions shall run from the date when the tax is due rather
5than from the date when gross receipts are received), 5
6(except that the time limitation provisions on the issuance of
7notices of tax liability shall run from the date when the tax
8is due rather than from the date when gross receipts are
9received and except that in the case of a failure to file a
10return required by this Act, no notice of tax liability shall
11be issued on and after each July 1 and January 1 covering tax
12due with that return during any month or period more than 6
13years before that July 1 or January 1, respectively), 5a, 5b,
145c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 5n, 7, 8, 9, 10, 11 and 12
15of the Retailers' Occupation Tax Act and Section 3-7 of the
16Uniform Penalty and Interest Act, which are not inconsistent
17with this Act, shall apply, as far as practicable, to the
18subject matter of this Act to the same extent as if such
19provisions were included herein.
20(Source: P.A. 98-1098, eff. 8-26-14.)
 
21    Section 110-908. The Service Use Tax Act is amended by
22changing Section 12 as follows:
 
23    (35 ILCS 110/12)  (from Ch. 120, par. 439.42)
24    Sec. 12. Applicability of Retailers' Occupation Tax Act

 

 

SB0157 Enrolled- 902 -LRB102 10128 HLH 16591 b

1and Uniform Penalty and Interest Act. All of the provisions of
2Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
32-54, 2a, 2b, 2c, 3 (except as to the disposition by the
4Department of the money collected under this Act), 4 (except
5that the time limitation provisions shall run from the date
6when gross receipts are received), 5 (except that the time
7limitation provisions on the issuance of notices of tax
8liability shall run from the date when the tax is due rather
9than from the date when gross receipts are received and except
10that in the case of a failure to file a return required by this
11Act, no notice of tax liability shall be issued on and after
12July 1 and January 1 covering tax due with that return during
13any month or period more than 6 years before that July 1 or
14January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k,
155l, 5n, 6d, 7, 8, 9, 10, 11 and 12 of the Retailers' Occupation
16Tax Act which are not inconsistent with this Act, and Section
173-7 of the Uniform Penalty and Interest Act, shall apply, as
18far as practicable, to the subject matter of this Act to the
19same extent as if such provisions were included herein.
20(Source: P.A. 98-1098, eff. 8-26-14; 99-217, eff. 7-31-15.)
 
21    Section 110-909. The Service Occupation Tax Act is amended
22by changing Section 12 as follows:
 
23    (35 ILCS 115/12)  (from Ch. 120, par. 439.112)
24    Sec. 12. All of the provisions of Sections 1d, 1e, 1f, 1i,

 

 

SB0157 Enrolled- 903 -LRB102 10128 HLH 16591 b

11j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12, 2-54, 2a, 2b, 2c, 3
2(except as to the disposition by the Department of the tax
3collected under this Act), 4 (except that the time limitation
4provisions shall run from the date when the tax is due rather
5than from the date when gross receipts are received), 5
6(except that the time limitation provisions on the issuance of
7notices of tax liability shall run from the date when the tax
8is due rather than from the date when gross receipts are
9received), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 5n, 6d, 7,
108, 9, 10, 11 and 12 of the "Retailers' Occupation Tax Act"
11which are not inconsistent with this Act, and Section 3-7 of
12the Uniform Penalty and Interest Act shall apply, as far as
13practicable, to the subject matter of this Act to the same
14extent as if such provisions were included herein.
15(Source: P.A. 98-1098, eff. 8-26-14; 99-217, eff. 7-31-15.)
 
16    Section 110-910. The Retailers' Occupation Tax Act is
17amended by adding Section 5n as follows:
 
18    (35 ILCS 120/5n new)
19    Sec. 5n. Building materials exemption; microchip and
20semiconductor manufacturing. Each retailer who makes a sale of
21building materials that will be incorporated into real estate
22in a qualified facility for which a certificate of exemption
23has been issued by the Department of Commerce and Economic
24Opportunity under Section 110-105 of the Manufacturing

 

 

SB0157 Enrolled- 904 -LRB102 10128 HLH 16591 b

1Illinois Chips for Real Opportunity (MICRO) Act, may deduct
2receipts from such sales when calculating any State or local
3use and occupation taxes. No retailer who is eligible for the
4deduction or credit under Section 5k of this Act related to
5enterprise zones or Section 5l of this Act related to High
6Impact Businesses for a given sale shall be eligible for the
7deduction or credit authorized under this Section for that
8same sale.
9    In addition to any other requirements to document the
10exemption allowed under this Section, the retailer must obtain
11the purchaser's exemption certificate number issued by the
12Department. A construction contractor or other entity shall
13not make tax-free purchases unless it has an active exemption
14certificate issued by the Department at the time of purchase.
15    Upon request from a person that has been certified by the
16Department of Commerce and Economic Opportunity under the
17Manufacturing Illinois Chips for Real Opportunity (MICRO) Act,
18the Department shall issue a MICRO Illinois Building Materials
19Exemption Certificate for each construction contractor or
20other entity identified by the person so certified. The
21Department shall make the MICRO Illinois Building Materials
22Exemption Certificates available to each construction
23contractor or other entity as well as the person certified
24under the Manufacturing Illinois Chips for Real Opportunity
25(MICRO) Act. The request for MICRO Illinois Building Materials
26Exemption Certificates must include the following information:

 

 

SB0157 Enrolled- 905 -LRB102 10128 HLH 16591 b

1        (1) the name and address of the construction
2    contractor or other entity;
3        (2) the name and location or address of the building
4    project site;
5        (3) the estimated amount of the exemption for each
6    construction contractor or other entity for which a
7    request for an exemption certificate is made, based on a
8    stated estimated average tax rate and the percentage of
9    the contract that consists of materials;
10        (4) the period of time over which supplies for the
11    project are expected to be purchased; and
12        (5) other reasonable information as the Department may
13    require, including but not limited to FEIN numbers, to
14    determine if the contractor or other entity, or any
15    partner, or a corporate officer, and in the case of a
16    limited liability company, any manager or member, of the
17    construction contractor or other entity, is or has been
18    the owner, a partner, a corporate officer, and in the case
19    of a limited liability company, a manager or member, of a
20    person that is in default for moneys due to the Department
21    under this Act or any other tax or fee Act administered by
22    the Department.
23    The Department shall issue the exemption certificate
24within 3 business days after receipt of request. This
25requirement does not apply in circumstances where the
26Department, for reasonable cause, is unable to issue the

 

 

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1exemption certificate within 3 business days. The Department
2may refuse to issue an exemption certificate under this
3Section if the owner, any partner, or a corporate officer, and
4in the case of a limited liability company, any manager or
5member, of the construction contractor or other entity is or
6has been the owner, a partner, a corporate officer, and in the
7case of a limited liability company, a manager or member, of a
8person that is in default for moneys due to the Department
9under this Act or any other tax or fee Act administered by the
10Department.
11    The MICRO Illinois Building Materials Exemption
12Certificate shall contain language stating that, if the
13construction contractor or other entity who is issued the
14exemption certificate makes a tax-exempt purchase, as
15described in this Section, that is not eligible for exemption
16under this Section or allows another person to make a
17tax-exempt purchase, as described in this Section, that is not
18eligible for exemption under this Section, then, in addition
19to any tax or other penalty imposed, the construction
20contractor or other entity is subject to a penalty equal to the
21tax that would have been paid by the retailer under this Act as
22well as any applicable local retailers' occupation tax on the
23purchase that is not eligible for the exemption.
24    The Department, in its discretion, may require that the
25request for a MICRO Illinois Exemption Certificate be
26submitted electronically. The Department may, in its

 

 

SB0157 Enrolled- 907 -LRB102 10128 HLH 16591 b

1discretion, issue the exemption certificates electronically.
2The MICRO Illinois Building Materials Exemption Certificate
3number shall be designed in such a way that the Department can
4identify from the unique number on the exemption certificate
5issued to a given construction contractor or other entity, the
6name of the entity to whom the exemption certificate is
7issued. The MICRO Illinois Building Materials Exemption
8Certificate shall contain an expiration date, which shall be
9no more than 5 years after the date of issuance. At the request
10of the entity to whom the exemption certificate is issued, the
11Department may renew an exemption certificate issued under
12this Section. After the Department issues exemption
13certificates under this Section, the certified entity may
14notify the Department of additional construction contractors
15or other entities eligible for an exemption certificate under
16this Section. Upon such a notification and subject to the
17other provisions of this Section, the Department shall issue
18an exemption certificate to each additional qualified
19construction contractor or other entity so identified. A
20certified entity may notify the Department to rescind an
21exemption certificate previously issued by the Department that
22has not yet expired. Upon such a notification and subject to
23the other provisions of this Section, the Department shall
24rescind the exemption certificate.
25    If the Department of Revenue determines that a
26construction contractor or other entity that was issued an

 

 

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1exemption certificate under this Section made a tax-exempt
2purchase, as described in this Section, that was not eligible
3for exemption under this Section or allowed another person to
4make a tax-exempt purchase, as described in this Section, that
5was not eligible for exemption under this Section, then, in
6addition to any tax or other penalty imposed, the construction
7contractor or other entity is subject to a penalty equal to the
8tax that would have been paid by the retailer under this Act as
9well as any applicable local retailers' occupation tax on the
10purchase that was not eligible for the exemption.
11    This Section is exempt from the provisions of Section
122-70.
 
13    Section 110-915. The Property Tax Code is amended by
14adding Section 18-184.20 as follows:
 
15    (35 ILCS 200/18-184.20 new)
16    Sec. 18-184.20. MICRO Illinois project facilities. Any
17taxing district, upon a majority vote of its governing body,
18may, after determination of the assessed value as set forth in
19this Code, order the clerk of the appropriate municipality or
20county to abate any portion of real property taxes otherwise
21levied or extended by the taxing district on a MICRO Illinois
22Project facility owned by a semiconductor manufacturer or
23microchip manufacturer or a semiconductor or microchip
24component parts manufacturer that is subject to an agreement

 

 

SB0157 Enrolled- 909 -LRB102 10128 HLH 16591 b

1with the Department of Commerce and Economic Opportunity under
2the Manufacturing Illinois Chips for Real Opportunity (MICRO)
3Act, during the period of time such agreement is in effect as
4specified by the Department of Commerce and Economic
5Opportunity.
 
6    Section 110-920. The Telecommunications Excise Tax Act is
7amended by changing Section 2 as follows:
 
8    (35 ILCS 630/2)  (from Ch. 120, par. 2002)
9    Sec. 2. As used in this Article, unless the context
10clearly requires otherwise:
11    (a) "Gross charge" means the amount paid for the act or
12privilege of originating or receiving telecommunications in
13this State and for all services and equipment provided in
14connection therewith by a retailer, valued in money whether
15paid in money or otherwise, including cash, credits, services
16and property of every kind or nature, and shall be determined
17without any deduction on account of the cost of such
18telecommunications, the cost of materials used, labor or
19service costs or any other expense whatsoever. In case credit
20is extended, the amount thereof shall be included only as and
21when paid. "Gross charges" for private line service shall
22include charges imposed at each channel termination point
23within this State, charges for the channel mileage between
24each channel termination point within this State, and charges

 

 

SB0157 Enrolled- 910 -LRB102 10128 HLH 16591 b

1for that portion of the interstate inter-office channel
2provided within Illinois. Charges for that portion of the
3interstate inter-office channel provided in Illinois shall be
4determined by the retailer as follows: (i) for interstate
5inter-office channels having 2 channel termination points,
6only one of which is in Illinois, 50% of the total charge
7imposed; or (ii) for interstate inter-office channels having
8more than 2 channel termination points, one or more of which
9are in Illinois, an amount equal to the total charge
10multiplied by a fraction, the numerator of which is the number
11of channel termination points within Illinois and the
12denominator of which is the total number of channel
13termination points. Prior to January 1, 2004, any method
14consistent with this paragraph or other method that reasonably
15apportions the total charges for interstate inter-office
16channels among the states in which channel terminations points
17are located shall be accepted as a reasonable method to
18determine the charges for that portion of the interstate
19inter-office channel provided within Illinois for that period.
20However, "gross charges" shall not include any of the
21following:
22        (1) Any amounts added to a purchaser's bill because of
23    a charge made pursuant to (i) the tax imposed by this
24    Article; (ii) charges added to customers' bills pursuant
25    to the provisions of Sections 9-221 or 9-222 of the Public
26    Utilities Act, as amended, or any similar charges added to

 

 

SB0157 Enrolled- 911 -LRB102 10128 HLH 16591 b

1    customers' bills by retailers who are not subject to rate
2    regulation by the Illinois Commerce Commission for the
3    purpose of recovering any of the tax liabilities or other
4    amounts specified in such provisions of such Act; (iii)
5    the tax imposed by Section 4251 of the Internal Revenue
6    Code; (iv) 911 surcharges; or (v) the tax imposed by the
7    Simplified Municipal Telecommunications Tax Act.
8        (2) Charges for a sent collect telecommunication
9    received outside of the State.
10        (3) Charges for leased time on equipment or charges
11    for the storage of data or information for subsequent
12    retrieval or the processing of data or information
13    intended to change its form or content. Such equipment
14    includes, but is not limited to, the use of calculators,
15    computers, data processing equipment, tabulating equipment
16    or accounting equipment and also includes the usage of
17    computers under a time-sharing agreement.
18        (4) Charges for customer equipment, including such
19    equipment that is leased or rented by the customer from
20    any source, wherein such charges are disaggregated and
21    separately identified from other charges.
22        (5) Charges to business enterprises certified under
23    Section 9-222.1 of the Public Utilities Act, as amended,
24    or to electric vehicle manufacturers, electric vehicle
25    component parts manufacturers, or electric vehicle power
26    supply manufacturers at REV Illinois Project sites for

 

 

SB0157 Enrolled- 912 -LRB102 10128 HLH 16591 b

1    which a certificate of exemption has been issued by the
2    Department of Commerce and Economic Opportunity under
3    Section 95 of the Reimagining Electric Vehicles in
4    Illinois Act, to the extent of such exemption and during
5    the period of time specified by the Department of Commerce
6    and Economic Opportunity.
7        (5.1) Charges to business enterprises certified under
8    the Manufacturing Illinois Chips for Real Opportunity
9    (MICRO) Act.
10        (6) Charges for telecommunications and all services
11    and equipment provided in connection therewith between a
12    parent corporation and its wholly owned subsidiaries or
13    between wholly owned subsidiaries when the tax imposed
14    under this Article has already been paid to a retailer and
15    only to the extent that the charges between the parent
16    corporation and wholly owned subsidiaries or between
17    wholly owned subsidiaries represent expense allocation
18    between the corporations and not the generation of profit
19    for the corporation rendering such service.
20        (7) Bad debts. Bad debt means any portion of a debt
21    that is related to a sale at retail for which gross charges
22    are not otherwise deductible or excludable that has become
23    worthless or uncollectable, as determined under applicable
24    federal income tax standards. If the portion of the debt
25    deemed to be bad is subsequently paid, the retailer shall
26    report and pay the tax on that portion during the

 

 

SB0157 Enrolled- 913 -LRB102 10128 HLH 16591 b

1    reporting period in which the payment is made.
2        (8) Charges paid by inserting coins in coin-operated
3    telecommunication devices.
4        (9) Amounts paid by telecommunications retailers under
5    the Telecommunications Municipal Infrastructure
6    Maintenance Fee Act.
7        (10) Charges for nontaxable services or
8    telecommunications if (i) those charges are aggregated
9    with other charges for telecommunications that are
10    taxable, (ii) those charges are not separately stated on
11    the customer bill or invoice, and (iii) the retailer can
12    reasonably identify the nontaxable charges on the
13    retailer's books and records kept in the regular course of
14    business. If the nontaxable charges cannot reasonably be
15    identified, the gross charge from the sale of both taxable
16    and nontaxable services or telecommunications billed on a
17    combined basis shall be attributed to the taxable services
18    or telecommunications. The burden of proving nontaxable
19    charges shall be on the retailer of the
20    telecommunications.
21    (b) "Amount paid" means the amount charged to the
22taxpayer's service address in this State regardless of where
23such amount is billed or paid.
24    (c) "Telecommunications", in addition to the meaning
25ordinarily and popularly ascribed to it, includes, without
26limitation, messages or information transmitted through use of

 

 

SB0157 Enrolled- 914 -LRB102 10128 HLH 16591 b

1local, toll and wide area telephone service; private line
2services; channel services; telegraph services;
3teletypewriter; computer exchange services; cellular mobile
4telecommunications service; specialized mobile radio;
5stationary two way radio; paging service; or any other form of
6mobile and portable one-way or two-way communications; or any
7other transmission of messages or information by electronic or
8similar means, between or among points by wire, cable,
9fiber-optics, laser, microwave, radio, satellite or similar
10facilities. As used in this Act, "private line" means a
11dedicated non-traffic sensitive service for a single customer,
12that entitles the customer to exclusive or priority use of a
13communications channel or group of channels, from one or more
14specified locations to one or more other specified locations.
15The definition of "telecommunications" shall not include value
16added services in which computer processing applications are
17used to act on the form, content, code and protocol of the
18information for purposes other than transmission.
19"Telecommunications" shall not include purchases of
20telecommunications by a telecommunications service provider
21for use as a component part of the service provided by him to
22the ultimate retail consumer who originates or terminates the
23taxable end-to-end communications. Carrier access charges,
24right of access charges, charges for use of inter-company
25facilities, and all telecommunications resold in the
26subsequent provision of, used as a component of, or integrated

 

 

SB0157 Enrolled- 915 -LRB102 10128 HLH 16591 b

1into end-to-end telecommunications service shall be
2non-taxable as sales for resale.
3    (d) "Interstate telecommunications" means all
4telecommunications that either originate or terminate outside
5this State.
6    (e) "Intrastate telecommunications" means all
7telecommunications that originate and terminate within this
8State.
9    (f) "Department" means the Department of Revenue of the
10State of Illinois.
11    (g) "Director" means the Director of Revenue for the
12Department of Revenue of the State of Illinois.
13    (h) "Taxpayer" means a person who individually or through
14his agents, employees or permittees engages in the act or
15privilege of originating or receiving telecommunications in
16this State and who incurs a tax liability under this Article.
17    (i) "Person" means any natural individual, firm, trust,
18estate, partnership, association, joint stock company, joint
19venture, corporation, limited liability company, or a
20receiver, trustee, guardian or other representative appointed
21by order of any court, the Federal and State governments,
22including State universities created by statute or any city,
23town, county or other political subdivision of this State.
24    (j) "Purchase at retail" means the acquisition,
25consumption or use of telecommunication through a sale at
26retail.

 

 

SB0157 Enrolled- 916 -LRB102 10128 HLH 16591 b

1    (k) "Sale at retail" means the transmitting, supplying or
2furnishing of telecommunications and all services and
3equipment provided in connection therewith for a consideration
4to persons other than the Federal and State governments, and
5State universities created by statute and other than between a
6parent corporation and its wholly owned subsidiaries or
7between wholly owned subsidiaries for their use or consumption
8and not for resale.
9    (l) "Retailer" means and includes every person engaged in
10the business of making sales at retail as defined in this
11Article. The Department may, in its discretion, upon
12application, authorize the collection of the tax hereby
13imposed by any retailer not maintaining a place of business
14within this State, who, to the satisfaction of the Department,
15furnishes adequate security to insure collection and payment
16of the tax. Such retailer shall be issued, without charge, a
17permit to collect such tax. When so authorized, it shall be the
18duty of such retailer to collect the tax upon all of the gross
19charges for telecommunications in this State in the same
20manner and subject to the same requirements as a retailer
21maintaining a place of business within this State. The permit
22may be revoked by the Department at its discretion.
23    (m) "Retailer maintaining a place of business in this
24State", or any like term, means and includes any retailer
25having or maintaining within this State, directly or by a
26subsidiary, an office, distribution facilities, transmission

 

 

SB0157 Enrolled- 917 -LRB102 10128 HLH 16591 b

1facilities, sales office, warehouse or other place of
2business, or any agent or other representative operating
3within this State under the authority of the retailer or its
4subsidiary, irrespective of whether such place of business or
5agent or other representative is located here permanently or
6temporarily, or whether such retailer or subsidiary is
7licensed to do business in this State.
8    (n) "Service address" means the location of
9telecommunications equipment from which the telecommunications
10services are originated or at which telecommunications
11services are received by a taxpayer. In the event this may not
12be a defined location, as in the case of mobile phones, paging
13systems, maritime systems, service address means the
14customer's place of primary use as defined in the Mobile
15Telecommunications Sourcing Conformity Act. For air-to-ground
16systems and the like, service address shall mean the location
17of a taxpayer's primary use of the telecommunications
18equipment as defined by telephone number, authorization code,
19or location in Illinois where bills are sent.
20    (o) "Prepaid telephone calling arrangements" mean the
21right to exclusively purchase telephone or telecommunications
22services that must be paid for in advance and enable the
23origination of one or more intrastate, interstate, or
24international telephone calls or other telecommunications
25using an access number, an authorization code, or both,
26whether manually or electronically dialed, for which payment

 

 

SB0157 Enrolled- 918 -LRB102 10128 HLH 16591 b

1to a retailer must be made in advance, provided that, unless
2recharged, no further service is provided once that prepaid
3amount of service has been consumed. Prepaid telephone calling
4arrangements include the recharge of a prepaid calling
5arrangement. For purposes of this subsection, "recharge" means
6the purchase of additional prepaid telephone or
7telecommunications services whether or not the purchaser
8acquires a different access number or authorization code.
9"Prepaid telephone calling arrangement" does not include an
10arrangement whereby a customer purchases a payment card and
11pursuant to which the service provider reflects the amount of
12such purchase as a credit on an invoice issued to that customer
13under an existing subscription plan.
14(Source: P.A. 102-669, eff. 11-16-21.)
 
15    Section 110-925. The Electricity Excise Tax Law is amended
16by changing Section 2-4 as follows:
 
17    (35 ILCS 640/2-4)
18    Sec. 2-4. Tax imposed.
19    (a) Except as provided in subsection (b), a tax is imposed
20on the privilege of using in this State electricity purchased
21for use or consumption and not for resale, other than by
22municipal corporations owning and operating a local
23transportation system for public service, at the following
24rates per kilowatt-hour delivered to the purchaser:

 

 

SB0157 Enrolled- 919 -LRB102 10128 HLH 16591 b

1        (i) For the first 2000 kilowatt-hours used or consumed
2    in a month: 0.330 cents per kilowatt-hour;
3        (ii) For the next 48,000 kilowatt-hours used or
4    consumed in a month: 0.319 cents per kilowatt-hour;
5        (iii) For the next 50,000 kilowatt-hours used or
6    consumed in a month: 0.303 cents per kilowatt-hour;
7        (iv) For the next 400,000 kilowatt-hours used or
8    consumed in a month: 0.297 cents per kilowatt-hour;
9        (v) For the next 500,000 kilowatt-hours used or
10    consumed in a month: 0.286 cents per kilowatt-hour;
11        (vi) For the next 2,000,000 kilowatt-hours used or
12    consumed in a month: 0.270 cents per kilowatt-hour;
13        (vii) For the next 2,000,000 kilowatt-hours used or
14    consumed in a month: 0.254 cents per kilowatt-hour;
15        (viii) For the next 5,000,000 kilowatt-hours used or
16    consumed in a month: 0.233 cents per kilowatt-hour;
17        (ix) For the next 10,000,000 kilowatt-hours used or
18    consumed in a month: 0.207 cents per kilowatt-hour;
19        (x) For all electricity in excess of 20,000,000
20    kilowatt-hours used or consumed in a month: 0.202 cents
21    per kilowatt-hour.
22    Provided, that in lieu of the foregoing rates, the tax is
23imposed on a self-assessing purchaser at the rate of 5.1% of
24the self-assessing purchaser's purchase price for all
25electricity distributed, supplied, furnished, sold,
26transmitted and delivered to the self-assessing purchaser in a

 

 

SB0157 Enrolled- 920 -LRB102 10128 HLH 16591 b

1month.
2    (b) A tax is imposed on the privilege of using in this
3State electricity purchased from a municipal system or
4electric cooperative, as defined in Article XVII of the Public
5Utilities Act, which has not made an election as permitted by
6either Section 17-200 or Section 17-300 of such Act, at the
7lesser of 0.32 cents per kilowatt hour of all electricity
8distributed, supplied, furnished, sold, transmitted, and
9delivered by such municipal system or electric cooperative to
10the purchaser or 5% of each such purchaser's purchase price
11for all electricity distributed, supplied, furnished, sold,
12transmitted, and delivered by such municipal system or
13electric cooperative to the purchaser, whichever is the lower
14rate as applied to each purchaser in each billing period.
15    (c) The tax imposed by this Section 2-4 is not imposed with
16respect to any use of electricity by business enterprises
17certified under Section 9-222.1 or 9-222.1A of the Public
18Utilities Act, as amended, to the extent of such exemption and
19during the time specified by the Department of Commerce and
20Economic Opportunity; or with respect to any transaction in
21interstate commerce, or otherwise, to the extent to which such
22transaction may not, under the Constitution and statutes of
23the United States, be made the subject of taxation by this
24State.
25    (d) The tax imposed by this Section 2-4 is not imposed with
26respect to any use of electricity at a REV Illinois Project

 

 

SB0157 Enrolled- 921 -LRB102 10128 HLH 16591 b

1site that has received a certification for tax exemption from
2the Department of Commerce and Economic Opportunity pursuant
3to Section 95 of the Reimagining Electric Vehicles in Illinois
4Act, to the extent of such exemption, which shall be no more
5than 10 years.
6    (e) The tax imposed by this Section 2-4 is not imposed with
7respect to any use of electricity at a project site that has
8received a certification for tax exemption from the Department
9of Commerce and Economic Opportunity pursuant to the
10Manufacturing Illinois Chips for Real Opportunity (MICRO) Act,
11to the extent of such exemption, which shall be no more than 10
12years.
13(Source: P.A. 102-669, eff. 11-16-21.)
 
14    Section 110-930. The Public Utilities Act is amended by
15changing Section 9-222 as follows:
 
16    (220 ILCS 5/9-222)  (from Ch. 111 2/3, par. 9-222)
17    Sec. 9-222. Whenever a tax is imposed upon a public
18utility engaged in the business of distributing, supplying,
19furnishing, or selling gas for use or consumption pursuant to
20Section 2 of the Gas Revenue Tax Act, or whenever a tax is
21required to be collected by a delivering supplier pursuant to
22Section 2-7 of the Electricity Excise Tax Act, or whenever a
23tax is imposed upon a public utility pursuant to Section 2-202
24of this Act, such utility may charge its customers, other than

 

 

SB0157 Enrolled- 922 -LRB102 10128 HLH 16591 b

1customers who are high impact businesses under Section 5.5 of
2the Illinois Enterprise Zone Act, electric vehicle
3manufacturers, electric vehicle component parts manufacturers,
4or electric vehicle power supply equipment manufacturers at
5REV Illinois Project sites as certified under Section 95 of
6the Reimagining Electric Vehicles in Illinois Act,
7manufacturers under the Manufacturing Illinois Chips for Real
8Opportunity (MICRO) Act, or certified business enterprises
9under Section 9-222.1 of this Act, to the extent of such
10exemption and during the period in which such exemption is in
11effect, in addition to any rate authorized by this Act, an
12additional charge equal to the total amount of such taxes. The
13exemption of this Section relating to high impact businesses
14shall be subject to the provisions of subsections (a), (b),
15and (b-5) of Section 5.5 of the Illinois Enterprise Zone Act.
16This requirement shall not apply to taxes on invested capital
17imposed pursuant to the Messages Tax Act, the Gas Revenue Tax
18Act and the Public Utilities Revenue Act. Such utility shall
19file with the Commission a supplemental schedule which shall
20specify such additional charge and which shall become
21effective upon filing without further notice. Such additional
22charge shall be shown separately on the utility bill to each
23customer. The Commission shall have the power to investigate
24whether or not such supplemental schedule correctly specifies
25such additional charge, but shall have no power to suspend
26such supplemental schedule. If the Commission finds, after a

 

 

SB0157 Enrolled- 923 -LRB102 10128 HLH 16591 b

1hearing, that such supplemental schedule does not correctly
2specify such additional charge, it shall by order require a
3refund to the appropriate customers of the excess, if any,
4with interest, in such manner as it shall deem just and
5reasonable, and in and by such order shall require the utility
6to file an amended supplemental schedule corresponding to the
7finding and order of the Commission. Except with respect to
8taxes imposed on invested capital, such tax liabilities shall
9be recovered from customers solely by means of the additional
10charges authorized by this Section.
11(Source: P.A. 102-669, eff. 11-16-21.)
 
12
ARTICLE 999. EFFECTIVE DATE

 
13    Section 999-99. Effective date. This Act takes effect upon
14becoming law, except that Article 100 takes effect on July 1,
152023.