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Rep. Curtis J. Tarver, II
Filed: 5/19/2023
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1 | | AMENDMENT TO SENATE BILL 1963
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2 | | AMENDMENT NO. ______. Amend Senate Bill 1963 by replacing |
3 | | everything after the enacting clause with the following:
|
4 | | "ARTICLE 5. AIRCRAFT ENGINES |
5 | | Section 5-5. The Use Tax Act is amended by changing |
6 | | Section 3-5 as follows:
|
7 | | (35 ILCS 105/3-5)
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8 | | Sec. 3-5. Exemptions. Use of the following tangible |
9 | | personal property is exempt from the tax imposed by this Act:
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10 | | (1) Personal property purchased from a corporation, |
11 | | society, association,
foundation, institution, or |
12 | | organization, other than a limited liability
company, that is |
13 | | organized and operated as a not-for-profit service enterprise
|
14 | | for the benefit of persons 65 years of age or older if the |
15 | | personal property was not purchased by the enterprise for the |
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1 | | purpose of resale by the
enterprise.
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2 | | (2) Personal property purchased by a not-for-profit |
3 | | Illinois county
fair association for use in conducting, |
4 | | operating, or promoting the
county fair.
|
5 | | (3) Personal property purchased by a not-for-profit
arts |
6 | | or cultural organization that establishes, by proof required |
7 | | by the
Department by
rule, that it has received an exemption |
8 | | under Section 501(c)(3) of the Internal
Revenue Code and that |
9 | | is organized and operated primarily for the
presentation
or |
10 | | support of arts or cultural programming, activities, or |
11 | | services. These
organizations include, but are not limited to, |
12 | | music and dramatic arts
organizations such as symphony |
13 | | orchestras and theatrical groups, arts and
cultural service |
14 | | organizations, local arts councils, visual arts organizations,
|
15 | | and media arts organizations.
On and after July 1, 2001 (the |
16 | | effective date of Public Act 92-35), however, an entity |
17 | | otherwise eligible for this exemption shall not
make tax-free |
18 | | purchases unless it has an active identification number issued |
19 | | by
the Department.
|
20 | | (4) Personal property purchased by a governmental body, by |
21 | | a
corporation, society, association, foundation, or |
22 | | institution organized and
operated exclusively for charitable, |
23 | | religious, or educational purposes, or
by a not-for-profit |
24 | | corporation, society, association, foundation,
institution, or |
25 | | organization that has no compensated officers or employees
and |
26 | | that is organized and operated primarily for the recreation of |
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1 | | persons
55 years of age or older. A limited liability company |
2 | | may qualify for the
exemption under this paragraph only if the |
3 | | limited liability company is
organized and operated |
4 | | exclusively for educational purposes. On and after July
1, |
5 | | 1987, however, no entity otherwise eligible for this exemption |
6 | | shall make
tax-free purchases unless it has an active |
7 | | exemption identification number
issued by the Department.
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8 | | (5) Until July 1, 2003, a passenger car that is a |
9 | | replacement vehicle to
the extent that the
purchase price of |
10 | | the car is subject to the Replacement Vehicle Tax.
|
11 | | (6) Until July 1, 2003 and beginning again on September 1, |
12 | | 2004 through August 30, 2014, graphic arts machinery and |
13 | | equipment, including
repair and replacement
parts, both new |
14 | | and used, and including that manufactured on special order,
|
15 | | certified by the purchaser to be used primarily for graphic |
16 | | arts production,
and including machinery and equipment |
17 | | purchased for lease.
Equipment includes chemicals or chemicals |
18 | | acting as catalysts but only if
the
chemicals or chemicals |
19 | | acting as catalysts effect a direct and immediate change
upon |
20 | | a graphic arts product. Beginning on July 1, 2017, graphic |
21 | | arts machinery and equipment is included in the manufacturing |
22 | | and assembling machinery and equipment exemption under |
23 | | paragraph (18).
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24 | | (7) Farm chemicals.
|
25 | | (8) Legal tender, currency, medallions, or gold or silver |
26 | | coinage issued by
the State of Illinois, the government of the |
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1 | | United States of America, or the
government of any foreign |
2 | | country, and bullion.
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3 | | (9) Personal property purchased from a teacher-sponsored |
4 | | student
organization affiliated with an elementary or |
5 | | secondary school located in
Illinois.
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6 | | (10) A motor vehicle that is used for automobile renting, |
7 | | as defined in the
Automobile Renting Occupation and Use Tax |
8 | | Act.
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9 | | (11) Farm machinery and equipment, both new and used,
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10 | | including that manufactured on special order, certified by the |
11 | | purchaser
to be used primarily for production agriculture or |
12 | | State or federal
agricultural programs, including individual |
13 | | replacement parts for
the machinery and equipment, including |
14 | | machinery and equipment
purchased
for lease,
and including |
15 | | implements of husbandry defined in Section 1-130 of
the |
16 | | Illinois Vehicle Code, farm machinery and agricultural |
17 | | chemical and
fertilizer spreaders, and nurse wagons required |
18 | | to be registered
under Section 3-809 of the Illinois Vehicle |
19 | | Code,
but excluding other motor
vehicles required to be
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20 | | registered under the Illinois Vehicle Code.
Horticultural |
21 | | polyhouses or hoop houses used for propagating, growing, or
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22 | | overwintering plants shall be considered farm machinery and |
23 | | equipment under
this item (11).
Agricultural chemical tender |
24 | | tanks and dry boxes shall include units sold
separately from a |
25 | | motor vehicle required to be licensed and units sold mounted
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26 | | on a motor vehicle required to be licensed if the selling price |
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1 | | of the tender
is separately stated.
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2 | | Farm machinery and equipment shall include precision |
3 | | farming equipment
that is
installed or purchased to be |
4 | | installed on farm machinery and equipment
including, but not |
5 | | limited to, tractors, harvesters, sprayers, planters,
seeders, |
6 | | or spreaders.
Precision farming equipment includes, but is not |
7 | | limited to, soil testing
sensors, computers, monitors, |
8 | | software, global positioning
and mapping systems, and other |
9 | | such equipment.
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10 | | Farm machinery and equipment also includes computers, |
11 | | sensors, software, and
related equipment used primarily in the
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12 | | computer-assisted operation of production agriculture |
13 | | facilities, equipment,
and
activities such as, but not limited |
14 | | to,
the collection, monitoring, and correlation of
animal and |
15 | | crop data for the purpose of
formulating animal diets and |
16 | | agricultural chemicals. This item (11) is exempt
from the |
17 | | provisions of
Section 3-90.
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18 | | (12) Until June 30, 2013, fuel and petroleum products sold |
19 | | to or used by an air common
carrier, certified by the carrier |
20 | | to be used for consumption, shipment, or
storage in the |
21 | | conduct of its business as an air common carrier, for a
flight |
22 | | destined for or returning from a location or locations
outside |
23 | | the United States without regard to previous or subsequent |
24 | | domestic
stopovers.
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25 | | Beginning July 1, 2013, fuel and petroleum products sold |
26 | | to or used by an air carrier, certified by the carrier to be |
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1 | | used for consumption, shipment, or storage in the conduct of |
2 | | its business as an air common carrier, for a flight that (i) is |
3 | | engaged in foreign trade or is engaged in trade between the |
4 | | United States and any of its possessions and (ii) transports |
5 | | at least one individual or package for hire from the city of |
6 | | origination to the city of final destination on the same |
7 | | aircraft, without regard to a change in the flight number of |
8 | | that aircraft. |
9 | | (13) Proceeds of mandatory service charges separately
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10 | | stated on customers' bills for the purchase and consumption of |
11 | | food and
beverages purchased at retail from a retailer, to the |
12 | | extent that the proceeds
of the service charge are in fact |
13 | | turned over as tips or as a substitute
for tips to the |
14 | | employees who participate directly in preparing, serving,
|
15 | | hosting or cleaning up the food or beverage function with |
16 | | respect to which
the service charge is imposed.
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17 | | (14) Until July 1, 2003, oil field exploration, drilling, |
18 | | and production
equipment,
including (i) rigs and parts of |
19 | | rigs, rotary
rigs, cable tool rigs, and workover rigs, (ii) |
20 | | pipe and tubular goods,
including casing and drill strings, |
21 | | (iii) pumps and pump-jack units, (iv)
storage tanks and flow |
22 | | lines, (v) any individual replacement part for oil
field |
23 | | exploration, drilling, and production equipment, and (vi) |
24 | | machinery and
equipment purchased
for lease; but excluding |
25 | | motor vehicles required to be registered under the
Illinois |
26 | | Vehicle Code.
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1 | | (15) Photoprocessing machinery and equipment, including |
2 | | repair and
replacement parts, both new and used, including |
3 | | that
manufactured on special order, certified by the purchaser |
4 | | to be used
primarily for photoprocessing, and including
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5 | | photoprocessing machinery and equipment purchased for lease.
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6 | | (16) Until July 1, 2028, coal and aggregate exploration, |
7 | | mining, off-highway hauling,
processing, maintenance, and |
8 | | reclamation equipment,
including replacement parts and |
9 | | equipment, and
including equipment purchased for lease, but |
10 | | excluding motor
vehicles required to be registered under the |
11 | | Illinois Vehicle Code. The changes made to this Section by |
12 | | Public Act 97-767 apply on and after July 1, 2003, but no claim |
13 | | for credit or refund is allowed on or after August 16, 2013 |
14 | | (the effective date of Public Act 98-456)
for such taxes paid |
15 | | during the period beginning July 1, 2003 and ending on August |
16 | | 16, 2013 (the effective date of Public Act 98-456).
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17 | | (17) Until July 1, 2003, distillation machinery and |
18 | | equipment, sold as a
unit or kit,
assembled or installed by the |
19 | | retailer, certified by the user to be used
only for the |
20 | | production of ethyl alcohol that will be used for consumption
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21 | | as motor fuel or as a component of motor fuel for the personal |
22 | | use of the
user, and not subject to sale or resale.
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23 | | (18) Manufacturing and assembling machinery and equipment |
24 | | used
primarily in the process of manufacturing or assembling |
25 | | tangible
personal property for wholesale or retail sale or |
26 | | lease, whether that sale
or lease is made directly by the |
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1 | | manufacturer or by some other person,
whether the materials |
2 | | used in the process are
owned by the manufacturer or some other |
3 | | person, or whether that sale or
lease is made apart from or as |
4 | | an incident to the seller's engaging in
the service occupation |
5 | | of producing machines, tools, dies, jigs,
patterns, gauges, or |
6 | | other similar items of no commercial value on
special order |
7 | | for a particular purchaser. The exemption provided by this |
8 | | paragraph (18) includes production related tangible personal |
9 | | property, as defined in Section 3-50, purchased on or after |
10 | | July 1, 2019. The exemption provided by this paragraph (18) |
11 | | does not include machinery and equipment used in (i) the |
12 | | generation of electricity for wholesale or retail sale; (ii) |
13 | | the generation or treatment of natural or artificial gas for |
14 | | wholesale or retail sale that is delivered to customers |
15 | | through pipes, pipelines, or mains; or (iii) the treatment of |
16 | | water for wholesale or retail sale that is delivered to |
17 | | customers through pipes, pipelines, or mains. The provisions |
18 | | of Public Act 98-583 are declaratory of existing law as to the |
19 | | meaning and scope of this exemption. Beginning on July 1, |
20 | | 2017, the exemption provided by this paragraph (18) includes, |
21 | | but is not limited to, graphic arts machinery and equipment, |
22 | | as defined in paragraph (6) of this Section.
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23 | | (19) Personal property delivered to a purchaser or |
24 | | purchaser's donee
inside Illinois when the purchase order for |
25 | | that personal property was
received by a florist located |
26 | | outside Illinois who has a florist located
inside Illinois |
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1 | | deliver the personal property.
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2 | | (20) Semen used for artificial insemination of livestock |
3 | | for direct
agricultural production.
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4 | | (21) Horses, or interests in horses, registered with and |
5 | | meeting the
requirements of any of the
Arabian Horse Club |
6 | | Registry of America, Appaloosa Horse Club, American Quarter
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7 | | Horse Association, United States
Trotting Association, or |
8 | | Jockey Club, as appropriate, used for
purposes of breeding or |
9 | | racing for prizes. This item (21) is exempt from the |
10 | | provisions of Section 3-90, and the exemption provided for |
11 | | under this item (21) applies for all periods beginning May 30, |
12 | | 1995, but no claim for credit or refund is allowed on or after |
13 | | January 1, 2008
for such taxes paid during the period |
14 | | beginning May 30, 2000 and ending on January 1, 2008.
|
15 | | (22) Computers and communications equipment utilized for |
16 | | any
hospital
purpose
and equipment used in the diagnosis,
|
17 | | analysis, or treatment of hospital patients purchased by a |
18 | | lessor who leases
the
equipment, under a lease of one year or |
19 | | longer executed or in effect at the
time the lessor would |
20 | | otherwise be subject to the tax imposed by this Act, to a
|
21 | | hospital
that has been issued an active tax exemption |
22 | | identification number by
the
Department under Section 1g of |
23 | | the Retailers' Occupation Tax Act. If the
equipment is leased |
24 | | in a manner that does not qualify for
this exemption or is used |
25 | | in any other non-exempt manner, the lessor
shall be liable for |
26 | | the
tax imposed under this Act or the Service Use Tax Act, as |
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1 | | the case may
be, based on the fair market value of the property |
2 | | at the time the
non-qualifying use occurs. No lessor shall |
3 | | collect or attempt to collect an
amount (however
designated) |
4 | | that purports to reimburse that lessor for the tax imposed by |
5 | | this
Act or the Service Use Tax Act, as the case may be, if the |
6 | | tax has not been
paid by the lessor. If a lessor improperly |
7 | | collects any such amount from the
lessee, the lessee shall |
8 | | have a legal right to claim a refund of that amount
from the |
9 | | lessor. If, however, that amount is not refunded to the lessee |
10 | | for
any reason, the lessor is liable to pay that amount to the |
11 | | Department.
|
12 | | (23) Personal property purchased by a lessor who leases |
13 | | the
property, under
a
lease of
one year or longer executed or |
14 | | in effect at the time
the lessor would otherwise be subject to |
15 | | the tax imposed by this Act,
to a governmental body
that has |
16 | | been issued an active sales tax exemption identification |
17 | | number by the
Department under Section 1g of the Retailers' |
18 | | Occupation Tax Act.
If the
property is leased in a manner that |
19 | | does not qualify for
this exemption
or used in any other |
20 | | non-exempt manner, the lessor shall be liable for the
tax |
21 | | imposed under this Act or the Service Use Tax Act, as the case |
22 | | may
be, based on the fair market value of the property at the |
23 | | time the
non-qualifying use occurs. No lessor shall collect or |
24 | | attempt to collect an
amount (however
designated) that |
25 | | purports to reimburse that lessor for the tax imposed by this
|
26 | | Act or the Service Use Tax Act, as the case may be, if the tax |
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1 | | has not been
paid by the lessor. If a lessor improperly |
2 | | collects any such amount from the
lessee, the lessee shall |
3 | | have a legal right to claim a refund of that amount
from the |
4 | | lessor. If, however, that amount is not refunded to the lessee |
5 | | for
any reason, the lessor is liable to pay that amount to the |
6 | | Department.
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7 | | (24) Beginning with taxable years ending on or after |
8 | | December
31, 1995
and
ending with taxable years ending on or |
9 | | before December 31, 2004,
personal property that is
donated |
10 | | for disaster relief to be used in a State or federally declared
|
11 | | disaster area in Illinois or bordering Illinois by a |
12 | | manufacturer or retailer
that is registered in this State to a |
13 | | corporation, society, association,
foundation, or institution |
14 | | that has been issued a sales tax exemption
identification |
15 | | number by the Department that assists victims of the disaster
|
16 | | who reside within the declared disaster area.
|
17 | | (25) Beginning with taxable years ending on or after |
18 | | December
31, 1995 and
ending with taxable years ending on or |
19 | | before December 31, 2004, personal
property that is used in |
20 | | the performance of infrastructure repairs in this
State, |
21 | | including but not limited to municipal roads and streets, |
22 | | access roads,
bridges, sidewalks, waste disposal systems, |
23 | | water and sewer line extensions,
water distribution and |
24 | | purification facilities, storm water drainage and
retention |
25 | | facilities, and sewage treatment facilities, resulting from a |
26 | | State
or federally declared disaster in Illinois or bordering |
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1 | | Illinois when such
repairs are initiated on facilities located |
2 | | in the declared disaster area
within 6 months after the |
3 | | disaster.
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4 | | (26) Beginning July 1, 1999, game or game birds purchased |
5 | | at a "game
breeding
and hunting preserve area" as that term is
|
6 | | used in
the Wildlife Code. This paragraph is exempt from the |
7 | | provisions
of
Section 3-90.
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8 | | (27) A motor vehicle, as that term is defined in Section |
9 | | 1-146
of the
Illinois
Vehicle Code, that is donated to a |
10 | | corporation, limited liability company,
society, association, |
11 | | foundation, or institution that is determined by the
|
12 | | Department to be organized and operated exclusively for |
13 | | educational purposes.
For purposes of this exemption, "a |
14 | | corporation, limited liability company,
society, association, |
15 | | foundation, or institution organized and operated
exclusively |
16 | | for educational purposes" means all tax-supported public |
17 | | schools,
private schools that offer systematic instruction in |
18 | | useful branches of
learning by methods common to public |
19 | | schools and that compare favorably in
their scope and |
20 | | intensity with the course of study presented in tax-supported
|
21 | | schools, and vocational or technical schools or institutes |
22 | | organized and
operated exclusively to provide a course of |
23 | | study of not less than 6 weeks
duration and designed to prepare |
24 | | individuals to follow a trade or to pursue a
manual, |
25 | | technical, mechanical, industrial, business, or commercial
|
26 | | occupation.
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1 | | (28) Beginning January 1, 2000, personal property, |
2 | | including
food,
purchased through fundraising
events for the |
3 | | benefit of
a public or private elementary or
secondary school, |
4 | | a group of those schools, or one or more school
districts if |
5 | | the events are
sponsored by an entity recognized by the school |
6 | | district that consists
primarily of volunteers and includes
|
7 | | parents and teachers of the school children. This paragraph |
8 | | does not apply
to fundraising
events (i) for the benefit of |
9 | | private home instruction or (ii)
for which the fundraising |
10 | | entity purchases the personal property sold at
the events from |
11 | | another individual or entity that sold the property for the
|
12 | | purpose of resale by the fundraising entity and that
profits |
13 | | from the sale to the
fundraising entity. This paragraph is |
14 | | exempt
from the provisions
of Section 3-90.
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15 | | (29) Beginning January 1, 2000 and through December 31, |
16 | | 2001, new or
used automatic vending
machines that prepare and |
17 | | serve hot food and beverages, including coffee, soup,
and
|
18 | | other items, and replacement parts for these machines.
|
19 | | Beginning January 1,
2002 and through June 30, 2003, machines |
20 | | and parts for machines used in
commercial, coin-operated |
21 | | amusement and vending business if a use or occupation
tax is |
22 | | paid on the gross receipts derived from the use of the |
23 | | commercial,
coin-operated amusement and vending machines.
This
|
24 | | paragraph
is exempt from the provisions of Section 3-90.
|
25 | | (30) Beginning January 1, 2001 and through June 30, 2016, |
26 | | food for human consumption that is to be consumed off the |
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1 | | premises
where it is sold (other than alcoholic beverages, |
2 | | soft drinks, and food that
has been prepared for immediate |
3 | | consumption) and prescription and
nonprescription medicines, |
4 | | drugs, medical appliances, and insulin, urine
testing |
5 | | materials, syringes, and needles used by diabetics, for human |
6 | | use, when
purchased for use by a person receiving medical |
7 | | assistance under Article V of
the Illinois Public Aid Code who |
8 | | resides in a licensed long-term care facility,
as defined in |
9 | | the Nursing Home Care Act, or in a licensed facility as defined |
10 | | in the ID/DD Community Care Act, the MC/DD Act, or the |
11 | | Specialized Mental Health Rehabilitation Act of 2013.
|
12 | | (31) Beginning on August 2, 2001 (the effective date of |
13 | | Public Act 92-227),
computers and communications equipment
|
14 | | utilized for any hospital purpose and equipment used in the |
15 | | diagnosis,
analysis, or treatment of hospital patients |
16 | | purchased by a lessor who leases
the equipment, under a lease |
17 | | of one year or longer executed or in effect at the
time the |
18 | | lessor would otherwise be subject to the tax imposed by this |
19 | | Act, to a
hospital that has been issued an active tax exemption |
20 | | identification number by
the Department under Section 1g of |
21 | | the Retailers' Occupation Tax Act. If the
equipment is leased |
22 | | in a manner that does not qualify for this exemption or is
used |
23 | | in any other nonexempt manner, the lessor shall be liable for |
24 | | the tax
imposed under this Act or the Service Use Tax Act, as |
25 | | the case may be, based on
the fair market value of the property |
26 | | at the time the nonqualifying use
occurs. No lessor shall |
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1 | | collect or attempt to collect an amount (however
designated) |
2 | | that purports to reimburse that lessor for the tax imposed by |
3 | | this
Act or the Service Use Tax Act, as the case may be, if the |
4 | | tax has not been
paid by the lessor. If a lessor improperly |
5 | | collects any such amount from the
lessee, the lessee shall |
6 | | have a legal right to claim a refund of that amount
from the |
7 | | lessor. If, however, that amount is not refunded to the lessee |
8 | | for
any reason, the lessor is liable to pay that amount to the |
9 | | Department.
This paragraph is exempt from the provisions of |
10 | | Section 3-90.
|
11 | | (32) Beginning on August 2, 2001 (the effective date of |
12 | | Public Act 92-227),
personal property purchased by a lessor |
13 | | who leases the property,
under a lease of one year or longer |
14 | | executed or in effect at the time the
lessor would otherwise be |
15 | | subject to the tax imposed by this Act, to a
governmental body |
16 | | that has been issued an active sales tax exemption
|
17 | | identification number by the Department under Section 1g of |
18 | | the Retailers'
Occupation Tax Act. If the property is leased |
19 | | in a manner that does not
qualify for this exemption or used in |
20 | | any other nonexempt manner, the lessor
shall be liable for the |
21 | | tax imposed under this Act or the Service Use Tax Act,
as the |
22 | | case may be, based on the fair market value of the property at |
23 | | the time
the nonqualifying use occurs. No lessor shall collect |
24 | | or attempt to collect
an amount (however designated) that |
25 | | purports to reimburse that lessor for the
tax imposed by this |
26 | | Act or the Service Use Tax Act, as the case may be, if the
tax |
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1 | | has not been paid by the lessor. If a lessor improperly |
2 | | collects any such
amount from the lessee, the lessee shall |
3 | | have a legal right to claim a refund
of that amount from the |
4 | | lessor. If, however, that amount is not refunded to
the lessee |
5 | | for any reason, the lessor is liable to pay that amount to the
|
6 | | Department. This paragraph is exempt from the provisions of |
7 | | Section 3-90.
|
8 | | (33) On and after July 1, 2003 and through June 30, 2004, |
9 | | the use in this State of motor vehicles of
the second division |
10 | | with a gross vehicle weight in excess of 8,000 pounds and
that |
11 | | are subject to the commercial distribution fee imposed under |
12 | | Section
3-815.1 of the Illinois Vehicle Code. Beginning on |
13 | | July 1, 2004 and through June 30, 2005, the use in this State |
14 | | of motor vehicles of the second division: (i) with a gross |
15 | | vehicle weight rating in excess of 8,000 pounds; (ii) that are |
16 | | subject to the commercial distribution fee imposed under |
17 | | Section 3-815.1 of the Illinois Vehicle Code; and (iii) that |
18 | | are primarily used for commercial purposes. Through June 30, |
19 | | 2005, this exemption applies to repair and
replacement parts |
20 | | added after the initial purchase of such a motor vehicle if
|
21 | | that motor
vehicle is used in a manner that would qualify for |
22 | | the rolling stock exemption
otherwise provided for in this |
23 | | Act. For purposes of this paragraph, the term "used for |
24 | | commercial purposes" means the transportation of persons or |
25 | | property in furtherance of any commercial or industrial |
26 | | enterprise, whether for-hire or not.
|
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1 | | (34) Beginning January 1, 2008, tangible personal property |
2 | | used in the construction or maintenance of a community water |
3 | | supply, as defined under Section 3.145 of the Environmental |
4 | | Protection Act, that is operated by a not-for-profit |
5 | | corporation that holds a valid water supply permit issued |
6 | | under Title IV of the Environmental Protection Act. This |
7 | | paragraph is exempt from the provisions of Section 3-90. |
8 | | (35) Beginning January 1, 2010 and continuing through |
9 | | December 31, 2029 December 31, 2024 , materials, parts, |
10 | | equipment, components, and furnishings incorporated into or |
11 | | upon an aircraft as part of the modification, refurbishment, |
12 | | completion, replacement, repair, or maintenance of the |
13 | | aircraft. This exemption includes consumable supplies used in |
14 | | the modification, refurbishment, completion, replacement, |
15 | | repair, and maintenance of aircraft . However, until January 1, |
16 | | 2024, this exemption , but excludes any materials, parts, |
17 | | equipment, components, and consumable supplies used in the |
18 | | modification, replacement, repair, and maintenance of aircraft |
19 | | engines or power plants, whether such engines or power plants |
20 | | are installed or uninstalled upon any such aircraft. |
21 | | "Consumable supplies" include, but are not limited to, |
22 | | adhesive, tape, sandpaper, general purpose lubricants, |
23 | | cleaning solution, latex gloves, and protective films. |
24 | | Beginning January 1, 2010 and continuing through December |
25 | | 31, 2023, this This exemption applies only to the use of |
26 | | qualifying tangible personal property by persons who modify, |
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1 | | refurbish, complete, repair, replace, or maintain aircraft and |
2 | | who (i) hold an Air Agency Certificate and are empowered to |
3 | | operate an approved repair station by the Federal Aviation |
4 | | Administration, (ii) have a Class IV Rating, and (iii) conduct |
5 | | operations in accordance with Part 145 of the Federal Aviation |
6 | | Regulations. From January 1, 2024 through December 31, 2029, |
7 | | this exemption applies only to the use of qualifying tangible |
8 | | personal property by: (A) persons who modify, refurbish, |
9 | | complete, repair, replace, or maintain aircraft and who (i) |
10 | | hold an Air Agency Certificate and are empowered to operate an |
11 | | approved repair station by the Federal Aviation |
12 | | Administration, (ii) have a Class IV Rating, and (iii) conduct |
13 | | operations in accordance with Part 145 of the Federal Aviation |
14 | | Regulations; and (B) persons who engage in the modification, |
15 | | replacement, repair, and maintenance of aircraft engines or |
16 | | power plants without regard to whether or not those persons |
17 | | meet the qualifications of item (A). |
18 | | The exemption does not include aircraft operated by a |
19 | | commercial air carrier providing scheduled passenger air |
20 | | service pursuant to authority issued under Part 121 or Part |
21 | | 129 of the Federal Aviation Regulations. The changes made to |
22 | | this paragraph (35) by Public Act 98-534 are declarative of |
23 | | existing law. It is the intent of the General Assembly that the |
24 | | exemption under this paragraph (35) applies continuously from |
25 | | January 1, 2010 through December 31, 2024; however, no claim |
26 | | for credit or refund is allowed for taxes paid as a result of |
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1 | | the disallowance of this exemption on or after January 1, 2015 |
2 | | and prior to February 5, 2020 ( the effective date of Public Act |
3 | | 101-629) this amendatory Act of the 101st General Assembly . |
4 | | (36) Tangible personal property purchased by a |
5 | | public-facilities corporation, as described in Section |
6 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
7 | | constructing or furnishing a municipal convention hall, but |
8 | | only if the legal title to the municipal convention hall is |
9 | | transferred to the municipality without any further |
10 | | consideration by or on behalf of the municipality at the time |
11 | | of the completion of the municipal convention hall or upon the |
12 | | retirement or redemption of any bonds or other debt |
13 | | instruments issued by the public-facilities corporation in |
14 | | connection with the development of the municipal convention |
15 | | hall. This exemption includes existing public-facilities |
16 | | corporations as provided in Section 11-65-25 of the Illinois |
17 | | Municipal Code. This paragraph is exempt from the provisions |
18 | | of Section 3-90. |
19 | | (37) Beginning January 1, 2017 and through December 31, |
20 | | 2026, menstrual pads, tampons, and menstrual cups. |
21 | | (38) Merchandise that is subject to the Rental Purchase |
22 | | Agreement Occupation and Use Tax. The purchaser must certify |
23 | | that the item is purchased to be rented subject to a rental |
24 | | purchase agreement, as defined in the Rental Purchase |
25 | | Agreement Act, and provide proof of registration under the |
26 | | Rental Purchase Agreement Occupation and Use Tax Act. This |
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1 | | paragraph is exempt from the provisions of Section 3-90. |
2 | | (39) Tangible personal property purchased by a purchaser |
3 | | who is exempt from the tax imposed by this Act by operation of |
4 | | federal law. This paragraph is exempt from the provisions of |
5 | | Section 3-90. |
6 | | (40) Qualified tangible personal property used in the |
7 | | construction or operation of a data center that has been |
8 | | granted a certificate of exemption by the Department of |
9 | | Commerce and Economic Opportunity, whether that tangible |
10 | | personal property is purchased by the owner, operator, or |
11 | | tenant of the data center or by a contractor or subcontractor |
12 | | of the owner, operator, or tenant. Data centers that would |
13 | | have qualified for a certificate of exemption prior to January |
14 | | 1, 2020 had Public Act 101-31 been in effect may apply for and |
15 | | obtain an exemption for subsequent purchases of computer |
16 | | equipment or enabling software purchased or leased to upgrade, |
17 | | supplement, or replace computer equipment or enabling software |
18 | | purchased or leased in the original investment that would have |
19 | | qualified. |
20 | | The Department of Commerce and Economic Opportunity shall |
21 | | grant a certificate of exemption under this item (40) to |
22 | | qualified data centers as defined by Section 605-1025 of the |
23 | | Department of Commerce and Economic Opportunity Law of the
|
24 | | Civil Administrative Code of Illinois. |
25 | | For the purposes of this item (40): |
26 | | "Data center" means a building or a series of |
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1 | | buildings rehabilitated or constructed to house working |
2 | | servers in one physical location or multiple sites within |
3 | | the State of Illinois. |
4 | | "Qualified tangible personal property" means: |
5 | | electrical systems and equipment; climate control and |
6 | | chilling equipment and systems; mechanical systems and |
7 | | equipment; monitoring and secure systems; emergency |
8 | | generators; hardware; computers; servers; data storage |
9 | | devices; network connectivity equipment; racks; cabinets; |
10 | | telecommunications cabling infrastructure; raised floor |
11 | | systems; peripheral components or systems; software; |
12 | | mechanical, electrical, or plumbing systems; battery |
13 | | systems; cooling systems and towers; temperature control |
14 | | systems; other cabling; and other data center |
15 | | infrastructure equipment and systems necessary to operate |
16 | | qualified tangible personal property, including fixtures; |
17 | | and component parts of any of the foregoing, including |
18 | | installation, maintenance, repair, refurbishment, and |
19 | | replacement of qualified tangible personal property to |
20 | | generate, transform, transmit, distribute, or manage |
21 | | electricity necessary to operate qualified tangible |
22 | | personal property; and all other tangible personal |
23 | | property that is essential to the operations of a computer |
24 | | data center. The term "qualified tangible personal |
25 | | property" also includes building materials physically |
26 | | incorporated in to the qualifying data center. To document |
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1 | | the exemption allowed under this Section, the retailer |
2 | | must obtain from the purchaser a copy of the certificate |
3 | | of eligibility issued by the Department of Commerce and |
4 | | Economic Opportunity. |
5 | | This item (40) is exempt from the provisions of Section |
6 | | 3-90. |
7 | | (41) Beginning July 1, 2022, breast pumps, breast pump |
8 | | collection and storage supplies, and breast pump kits. This |
9 | | item (41) is exempt from the provisions of Section 3-90. As |
10 | | used in this item (41): |
11 | | "Breast pump" means an electrically controlled or |
12 | | manually controlled pump device designed or marketed to be |
13 | | used to express milk from a human breast during lactation, |
14 | | including the pump device and any battery, AC adapter, or |
15 | | other power supply unit that is used to power the pump |
16 | | device and is packaged and sold with the pump device at the |
17 | | time of sale. |
18 | | "Breast pump collection and storage supplies" means |
19 | | items of tangible personal property designed or marketed |
20 | | to be used in conjunction with a breast pump to collect |
21 | | milk expressed from a human breast and to store collected |
22 | | milk until it is ready for consumption. |
23 | | "Breast pump collection and storage supplies" |
24 | | includes, but is not limited to: breast shields and breast |
25 | | shield connectors; breast pump tubes and tubing adapters; |
26 | | breast pump valves and membranes; backflow protectors and |
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1 | | backflow protector adaptors; bottles and bottle caps |
2 | | specific to the operation of the breast pump; and breast |
3 | | milk storage bags. |
4 | | "Breast pump collection and storage supplies" does not |
5 | | include: (1) bottles and bottle caps not specific to the |
6 | | operation of the breast pump; (2) breast pump travel bags |
7 | | and other similar carrying accessories, including ice |
8 | | packs, labels, and other similar products; (3) breast pump |
9 | | cleaning supplies; (4) nursing bras, bra pads, breast |
10 | | shells, and other similar products; and (5) creams, |
11 | | ointments, and other similar products that relieve |
12 | | breastfeeding-related symptoms or conditions of the |
13 | | breasts or nipples, unless sold as part of a breast pump |
14 | | kit that is pre-packaged by the breast pump manufacturer |
15 | | or distributor. |
16 | | "Breast pump kit" means a kit that: (1) contains no |
17 | | more than a breast pump, breast pump collection and |
18 | | storage supplies, a rechargeable battery for operating the |
19 | | breast pump, a breastmilk cooler, bottle stands, ice |
20 | | packs, and a breast pump carrying case; and (2) is |
21 | | pre-packaged as a breast pump kit by the breast pump |
22 | | manufacturer or distributor. |
23 | | (42) (41) Tangible personal property sold by or on behalf |
24 | | of the State Treasurer pursuant to the Revised Uniform |
25 | | Unclaimed Property Act. This item (42) (41) is exempt from the |
26 | | provisions of Section 3-90. |
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1 | | (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; |
2 | | 101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff. |
3 | | 6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22; |
4 | | 102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026, |
5 | | eff. 5-27-22; revised 8-1-22.)
|
6 | | Section 5-10. The Service Use Tax Act is amended by |
7 | | changing Section 3-5 as follows:
|
8 | | (35 ILCS 110/3-5)
|
9 | | Sec. 3-5. Exemptions. Use of the following tangible |
10 | | personal property
is exempt from the tax imposed by this Act:
|
11 | | (1) Personal property purchased from a corporation, |
12 | | society,
association, foundation, institution, or |
13 | | organization, other than a limited
liability company, that is |
14 | | organized and operated as a not-for-profit service
enterprise |
15 | | for the benefit of persons 65 years of age or older if the |
16 | | personal
property was not purchased by the enterprise for the |
17 | | purpose of resale by the
enterprise.
|
18 | | (2) Personal property purchased by a non-profit Illinois |
19 | | county fair
association for use in conducting, operating, or |
20 | | promoting the county fair.
|
21 | | (3) Personal property purchased by a not-for-profit arts
|
22 | | or cultural
organization that establishes, by proof required |
23 | | by the Department by rule,
that it has received an exemption |
24 | | under Section 501(c)(3) of the Internal
Revenue Code and that |
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1 | | is organized and operated primarily for the
presentation
or |
2 | | support of arts or cultural programming, activities, or |
3 | | services. These
organizations include, but are not limited to, |
4 | | music and dramatic arts
organizations such as symphony |
5 | | orchestras and theatrical groups, arts and
cultural service |
6 | | organizations, local arts councils, visual arts organizations,
|
7 | | and media arts organizations.
On and after July 1, 2001 (the |
8 | | effective date of Public Act 92-35), however, an entity |
9 | | otherwise eligible for this exemption shall not
make tax-free |
10 | | purchases unless it has an active identification number issued |
11 | | by
the Department.
|
12 | | (4) Legal tender, currency, medallions, or gold or silver |
13 | | coinage issued
by the State of Illinois, the government of the |
14 | | United States of America,
or the government of any foreign |
15 | | country, and bullion.
|
16 | | (5) Until July 1, 2003 and beginning again on September 1, |
17 | | 2004 through August 30, 2014, graphic arts machinery and |
18 | | equipment, including
repair and
replacement parts, both new |
19 | | and used, and including that manufactured on
special order or |
20 | | purchased for lease, certified by the purchaser to be used
|
21 | | primarily for graphic arts production.
Equipment includes |
22 | | chemicals or
chemicals acting as catalysts but only if
the |
23 | | chemicals or chemicals acting as catalysts effect a direct and |
24 | | immediate
change upon a graphic arts product. Beginning on |
25 | | July 1, 2017, graphic arts machinery and equipment is included |
26 | | in the manufacturing and assembling machinery and equipment |
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1 | | exemption under Section 2 of this Act.
|
2 | | (6) Personal property purchased from a teacher-sponsored |
3 | | student
organization affiliated with an elementary or |
4 | | secondary school located
in Illinois.
|
5 | | (7) Farm machinery and equipment, both new and used, |
6 | | including that
manufactured on special order, certified by the |
7 | | purchaser to be used
primarily for production agriculture or |
8 | | State or federal agricultural
programs, including individual |
9 | | replacement parts for the machinery and
equipment, including |
10 | | machinery and equipment purchased for lease,
and including |
11 | | implements of husbandry defined in Section 1-130 of
the |
12 | | Illinois Vehicle Code, farm machinery and agricultural |
13 | | chemical and
fertilizer spreaders, and nurse wagons required |
14 | | to be registered
under Section 3-809 of the Illinois Vehicle |
15 | | Code,
but
excluding other motor vehicles required to be |
16 | | registered under the Illinois
Vehicle Code.
Horticultural |
17 | | polyhouses or hoop houses used for propagating, growing, or
|
18 | | overwintering plants shall be considered farm machinery and |
19 | | equipment under
this item (7).
Agricultural chemical tender |
20 | | tanks and dry boxes shall include units sold
separately from a |
21 | | motor vehicle required to be licensed and units sold mounted
|
22 | | on a motor vehicle required to be licensed if the selling price |
23 | | of the tender
is separately stated.
|
24 | | Farm machinery and equipment shall include precision |
25 | | farming equipment
that is
installed or purchased to be |
26 | | installed on farm machinery and equipment
including, but not |
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1 | | limited to, tractors, harvesters, sprayers, planters,
seeders, |
2 | | or spreaders.
Precision farming equipment includes, but is not |
3 | | limited to,
soil testing sensors, computers, monitors, |
4 | | software, global positioning
and mapping systems, and other |
5 | | such equipment.
|
6 | | Farm machinery and equipment also includes computers, |
7 | | sensors, software, and
related equipment used primarily in the
|
8 | | computer-assisted operation of production agriculture |
9 | | facilities, equipment,
and activities such as, but
not limited |
10 | | to,
the collection, monitoring, and correlation of
animal and |
11 | | crop data for the purpose of
formulating animal diets and |
12 | | agricultural chemicals. This item (7) is exempt
from the |
13 | | provisions of
Section 3-75.
|
14 | | (8) Until June 30, 2013, fuel and petroleum products sold |
15 | | to or used by an air common
carrier, certified by the carrier |
16 | | to be used for consumption, shipment, or
storage in the |
17 | | conduct of its business as an air common carrier, for a
flight |
18 | | destined for or returning from a location or locations
outside |
19 | | the United States without regard to previous or subsequent |
20 | | domestic
stopovers.
|
21 | | Beginning July 1, 2013, fuel and petroleum products sold |
22 | | to or used by an air carrier, certified by the carrier to be |
23 | | used for consumption, shipment, or storage in the conduct of |
24 | | its business as an air common carrier, for a flight that (i) is |
25 | | engaged in foreign trade or is engaged in trade between the |
26 | | United States and any of its possessions and (ii) transports |
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1 | | at least one individual or package for hire from the city of |
2 | | origination to the city of final destination on the same |
3 | | aircraft, without regard to a change in the flight number of |
4 | | that aircraft. |
5 | | (9) Proceeds of mandatory service charges separately |
6 | | stated on
customers' bills for the purchase and consumption of |
7 | | food and beverages
acquired as an incident to the purchase of a |
8 | | service from a serviceman, to
the extent that the proceeds of |
9 | | the service charge are in fact
turned over as tips or as a |
10 | | substitute for tips to the employees who
participate directly |
11 | | in preparing, serving, hosting or cleaning up the
food or |
12 | | beverage function with respect to which the service charge is |
13 | | imposed.
|
14 | | (10) Until July 1, 2003, oil field exploration, drilling, |
15 | | and production
equipment, including
(i) rigs and parts of |
16 | | rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) |
17 | | pipe and tubular goods, including casing and
drill strings, |
18 | | (iii) pumps and pump-jack units, (iv) storage tanks and flow
|
19 | | lines, (v) any individual replacement part for oil field |
20 | | exploration,
drilling, and production equipment, and (vi) |
21 | | machinery and equipment purchased
for lease; but
excluding |
22 | | motor vehicles required to be registered under the Illinois
|
23 | | Vehicle Code.
|
24 | | (11) Proceeds from the sale of photoprocessing machinery |
25 | | and
equipment, including repair and replacement parts, both |
26 | | new and
used, including that manufactured on special order, |
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1 | | certified by the
purchaser to be used primarily for |
2 | | photoprocessing, and including
photoprocessing machinery and |
3 | | equipment purchased for lease.
|
4 | | (12) Until July 1, 2028, coal and aggregate exploration, |
5 | | mining, off-highway hauling,
processing,
maintenance, and |
6 | | reclamation equipment, including
replacement parts and |
7 | | equipment, and including
equipment purchased for lease, but |
8 | | excluding motor vehicles required to be
registered under the |
9 | | Illinois Vehicle Code. The changes made to this Section by |
10 | | Public Act 97-767 apply on and after July 1, 2003, but no claim |
11 | | for credit or refund is allowed on or after August 16, 2013 |
12 | | (the effective date of Public Act 98-456)
for such taxes paid |
13 | | during the period beginning July 1, 2003 and ending on August |
14 | | 16, 2013 (the effective date of Public Act 98-456).
|
15 | | (13) Semen used for artificial insemination of livestock |
16 | | for direct
agricultural production.
|
17 | | (14) Horses, or interests in horses, registered with and |
18 | | meeting the
requirements of any of the
Arabian Horse Club |
19 | | Registry of America, Appaloosa Horse Club, American Quarter
|
20 | | Horse Association, United States
Trotting Association, or |
21 | | Jockey Club, as appropriate, used for
purposes of breeding or |
22 | | racing for prizes. This item (14) is exempt from the |
23 | | provisions of Section 3-75, and the exemption provided for |
24 | | under this item (14) applies for all periods beginning May 30, |
25 | | 1995, but no claim for credit or refund is allowed on or after |
26 | | January 1, 2008 (the effective date of Public Act 95-88) for |
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1 | | such taxes paid during the period beginning May 30, 2000 and |
2 | | ending on January 1, 2008 (the effective date of Public Act |
3 | | 95-88).
|
4 | | (15) Computers and communications equipment utilized for |
5 | | any
hospital
purpose
and equipment used in the diagnosis,
|
6 | | analysis, or treatment of hospital patients purchased by a |
7 | | lessor who leases
the
equipment, under a lease of one year or |
8 | | longer executed or in effect at the
time
the lessor would |
9 | | otherwise be subject to the tax imposed by this Act,
to a
|
10 | | hospital
that has been issued an active tax exemption |
11 | | identification number by the
Department under Section 1g of |
12 | | the Retailers' Occupation Tax Act.
If the
equipment is leased |
13 | | in a manner that does not qualify for
this exemption
or is used |
14 | | in any other non-exempt manner,
the lessor shall be liable for |
15 | | the
tax imposed under this Act or the Use Tax Act, as the case |
16 | | may
be, based on the fair market value of the property at the |
17 | | time the
non-qualifying use occurs. No lessor shall collect or |
18 | | attempt to collect an
amount (however
designated) that |
19 | | purports to reimburse that lessor for the tax imposed by this
|
20 | | Act or the Use Tax Act, as the case may be, if the tax has not |
21 | | been
paid by the lessor. If a lessor improperly collects any |
22 | | such amount from the
lessee, the lessee shall have a legal |
23 | | right to claim a refund of that amount
from the lessor. If, |
24 | | however, that amount is not refunded to the lessee for
any |
25 | | reason, the lessor is liable to pay that amount to the |
26 | | Department.
|
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1 | | (16) Personal property purchased by a lessor who leases |
2 | | the
property, under
a
lease of one year or longer executed or |
3 | | in effect at the time
the lessor would otherwise be subject to |
4 | | the tax imposed by this Act,
to a governmental body
that has |
5 | | been issued an active tax exemption identification number by |
6 | | the
Department under Section 1g of the Retailers' Occupation |
7 | | Tax Act.
If the
property is leased in a manner that does not |
8 | | qualify for
this exemption
or is used in any other non-exempt |
9 | | manner,
the lessor shall be liable for the
tax imposed under |
10 | | this Act or the Use Tax Act, as the case may
be, based on the |
11 | | fair market value of the property at the time the
|
12 | | non-qualifying use occurs. No lessor shall collect or attempt |
13 | | to collect an
amount (however
designated) that purports to |
14 | | reimburse that lessor for the tax imposed by this
Act or the |
15 | | Use Tax Act, as the case may be, if the tax has not been
paid |
16 | | by the lessor. If a lessor improperly collects any such amount |
17 | | from the
lessee, the lessee shall have a legal right to claim a |
18 | | refund of that amount
from the lessor. If, however, that |
19 | | amount is not refunded to the lessee for
any reason, the lessor |
20 | | is liable to pay that amount to the Department.
|
21 | | (17) Beginning with taxable years ending on or after |
22 | | December
31,
1995
and
ending with taxable years ending on or |
23 | | before December 31, 2004,
personal property that is
donated |
24 | | for disaster relief to be used in a State or federally declared
|
25 | | disaster area in Illinois or bordering Illinois by a |
26 | | manufacturer or retailer
that is registered in this State to a |
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1 | | corporation, society, association,
foundation, or institution |
2 | | that has been issued a sales tax exemption
identification |
3 | | number by the Department that assists victims of the disaster
|
4 | | who reside within the declared disaster area.
|
5 | | (18) Beginning with taxable years ending on or after |
6 | | December
31, 1995 and
ending with taxable years ending on or |
7 | | before December 31, 2004, personal
property that is used in |
8 | | the performance of infrastructure repairs in this
State, |
9 | | including but not limited to municipal roads and streets, |
10 | | access roads,
bridges, sidewalks, waste disposal systems, |
11 | | water and sewer line extensions,
water distribution and |
12 | | purification facilities, storm water drainage and
retention |
13 | | facilities, and sewage treatment facilities, resulting from a |
14 | | State
or federally declared disaster in Illinois or bordering |
15 | | Illinois when such
repairs are initiated on facilities located |
16 | | in the declared disaster area
within 6 months after the |
17 | | disaster.
|
18 | | (19) Beginning July 1, 1999, game or game birds purchased |
19 | | at a "game
breeding
and hunting preserve area" as that term is
|
20 | | used in
the Wildlife Code. This paragraph is exempt from the |
21 | | provisions
of
Section 3-75.
|
22 | | (20) A motor vehicle, as that term is defined in Section |
23 | | 1-146
of the
Illinois Vehicle Code, that is donated to a |
24 | | corporation, limited liability
company, society, association, |
25 | | foundation, or institution that is determined by
the |
26 | | Department to be organized and operated exclusively for |
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1 | | educational
purposes. For purposes of this exemption, "a |
2 | | corporation, limited liability
company, society, association, |
3 | | foundation, or institution organized and
operated
exclusively |
4 | | for educational purposes" means all tax-supported public |
5 | | schools,
private schools that offer systematic instruction in |
6 | | useful branches of
learning by methods common to public |
7 | | schools and that compare favorably in
their scope and |
8 | | intensity with the course of study presented in tax-supported
|
9 | | schools, and vocational or technical schools or institutes |
10 | | organized and
operated exclusively to provide a course of |
11 | | study of not less than 6 weeks
duration and designed to prepare |
12 | | individuals to follow a trade or to pursue a
manual, |
13 | | technical, mechanical, industrial, business, or commercial
|
14 | | occupation.
|
15 | | (21) Beginning January 1, 2000, personal property, |
16 | | including
food,
purchased through fundraising
events for the |
17 | | benefit of
a public or private elementary or
secondary school, |
18 | | a group of those schools, or one or more school
districts if |
19 | | the events are
sponsored by an entity recognized by the school |
20 | | district that consists
primarily of volunteers and includes
|
21 | | parents and teachers of the school children. This paragraph |
22 | | does not apply
to fundraising
events (i) for the benefit of |
23 | | private home instruction or (ii)
for which the fundraising |
24 | | entity purchases the personal property sold at
the events from |
25 | | another individual or entity that sold the property for the
|
26 | | purpose of resale by the fundraising entity and that
profits |
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1 | | from the sale to the
fundraising entity. This paragraph is |
2 | | exempt
from the provisions
of Section 3-75.
|
3 | | (22) Beginning January 1, 2000
and through December 31, |
4 | | 2001, new or used automatic vending
machines that prepare and |
5 | | serve hot food and beverages, including coffee, soup,
and
|
6 | | other items, and replacement parts for these machines.
|
7 | | Beginning January 1,
2002 and through June 30, 2003, machines |
8 | | and parts for machines used in
commercial, coin-operated
|
9 | | amusement
and vending business if a use or occupation tax is |
10 | | paid on the gross receipts
derived from
the use of the |
11 | | commercial, coin-operated amusement and vending machines.
This
|
12 | | paragraph
is exempt from the provisions of Section 3-75.
|
13 | | (23) Beginning August 23, 2001 and through June 30, 2016, |
14 | | food for human consumption that is to be consumed off the
|
15 | | premises
where it is sold (other than alcoholic beverages, |
16 | | soft drinks, and food that
has been prepared for immediate |
17 | | consumption) and prescription and
nonprescription medicines, |
18 | | drugs, medical appliances, and insulin, urine
testing |
19 | | materials, syringes, and needles used by diabetics, for human |
20 | | use, when
purchased for use by a person receiving medical |
21 | | assistance under Article V of
the Illinois Public Aid Code who |
22 | | resides in a licensed long-term care facility,
as defined in |
23 | | the Nursing Home Care Act, or in a licensed facility as defined |
24 | | in the ID/DD Community Care Act, the MC/DD Act, or the |
25 | | Specialized Mental Health Rehabilitation Act of 2013.
|
26 | | (24) Beginning on August 2, 2001 (the effective date of |
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1 | | Public Act 92-227), computers and communications equipment
|
2 | | utilized for any hospital purpose and equipment used in the |
3 | | diagnosis,
analysis, or treatment of hospital patients |
4 | | purchased by a lessor who leases
the equipment, under a lease |
5 | | of one year or longer executed or in effect at the
time the |
6 | | lessor would otherwise be subject to the tax imposed by this |
7 | | Act, to a
hospital that has been issued an active tax exemption |
8 | | identification number by
the Department under Section 1g of |
9 | | the Retailers' Occupation Tax Act. If the
equipment is leased |
10 | | in a manner that does not qualify for this exemption or is
used |
11 | | in any other nonexempt manner, the lessor shall be liable for |
12 | | the
tax imposed under this Act or the Use Tax Act, as the case |
13 | | may be, based on the
fair market value of the property at the |
14 | | time the nonqualifying use occurs.
No lessor shall collect or |
15 | | attempt to collect an amount (however
designated) that |
16 | | purports to reimburse that lessor for the tax imposed by this
|
17 | | Act or the Use Tax Act, as the case may be, if the tax has not |
18 | | been
paid by the lessor. If a lessor improperly collects any |
19 | | such amount from the
lessee, the lessee shall have a legal |
20 | | right to claim a refund of that amount
from the lessor. If, |
21 | | however, that amount is not refunded to the lessee for
any |
22 | | reason, the lessor is liable to pay that amount to the |
23 | | Department.
This paragraph is exempt from the provisions of |
24 | | Section 3-75.
|
25 | | (25) Beginning
on August 2, 2001 (the effective date of |
26 | | Public Act 92-227),
personal property purchased by a lessor
|
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1 | | who leases the property, under a lease of one year or longer |
2 | | executed or in
effect at the time the lessor would otherwise be |
3 | | subject to the tax imposed by
this Act, to a governmental body |
4 | | that has been issued an active tax exemption
identification |
5 | | number by the Department under Section 1g of the Retailers'
|
6 | | Occupation Tax Act. If the property is leased in a manner that |
7 | | does not
qualify for this exemption or is used in any other |
8 | | nonexempt manner, the
lessor shall be liable for the tax |
9 | | imposed under this Act or the Use Tax Act,
as the case may be, |
10 | | based on the fair market value of the property at the time
the |
11 | | nonqualifying use occurs. No lessor shall collect or attempt |
12 | | to collect
an amount (however designated) that purports to |
13 | | reimburse that lessor for the
tax imposed by this Act or the |
14 | | Use Tax Act, as the case may be, if the tax has
not been paid |
15 | | by the lessor. If a lessor improperly collects any such amount
|
16 | | from the lessee, the lessee shall have a legal right to claim a |
17 | | refund of that
amount from the lessor. If, however, that |
18 | | amount is not refunded to the lessee
for any reason, the lessor |
19 | | is liable to pay that amount to the Department.
This paragraph |
20 | | is exempt from the provisions of Section 3-75.
|
21 | | (26) Beginning January 1, 2008, tangible personal property |
22 | | used in the construction or maintenance of a community water |
23 | | supply, as defined under Section 3.145 of the Environmental |
24 | | Protection Act, that is operated by a not-for-profit |
25 | | corporation that holds a valid water supply permit issued |
26 | | under Title IV of the Environmental Protection Act. This |
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1 | | paragraph is exempt from the provisions of Section 3-75.
|
2 | | (27) Beginning January 1, 2010 and continuing through |
3 | | December 31, 2029 December 31, 2024 , materials, parts, |
4 | | equipment, components, and furnishings incorporated into or |
5 | | upon an aircraft as part of the modification, refurbishment, |
6 | | completion, replacement, repair, or maintenance of the |
7 | | aircraft. This exemption includes consumable supplies used in |
8 | | the modification, refurbishment, completion, replacement, |
9 | | repair, and maintenance of aircraft . However, until January 1, |
10 | | 2024, this exemption , but excludes any materials, parts, |
11 | | equipment, components, and consumable supplies used in the |
12 | | modification, replacement, repair, and maintenance of aircraft |
13 | | engines or power plants, whether such engines or power plants |
14 | | are installed or uninstalled upon any such aircraft. |
15 | | "Consumable supplies" include, but are not limited to, |
16 | | adhesive, tape, sandpaper, general purpose lubricants, |
17 | | cleaning solution, latex gloves, and protective films. |
18 | | Beginning January 1, 2010 and continuing through December |
19 | | 31, 2023, this This exemption applies only to the use of |
20 | | qualifying tangible personal property transferred incident to |
21 | | the modification, refurbishment, completion, replacement, |
22 | | repair, or maintenance of aircraft by persons who (i) hold an |
23 | | Air Agency Certificate and are empowered to operate an |
24 | | approved repair station by the Federal Aviation |
25 | | Administration, (ii) have a Class IV Rating, and (iii) conduct |
26 | | operations in accordance with Part 145 of the Federal Aviation |
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1 | | Regulations. From January 1, 2024 through December 31, 2029, |
2 | | this exemption applies only to the use of qualifying tangible |
3 | | personal property by: (A) persons who modify, refurbish, |
4 | | complete, repair, replace, or maintain aircraft and who (i) |
5 | | hold an Air Agency Certificate and are empowered to operate an |
6 | | approved repair station by the Federal Aviation |
7 | | Administration, (ii) have a Class IV Rating, and (iii) conduct |
8 | | operations in accordance with Part 145 of the Federal Aviation |
9 | | Regulations; and (B) persons who engage in the modification, |
10 | | replacement, repair, and maintenance of aircraft engines or |
11 | | power plants without regard to whether or not those persons |
12 | | meet the qualifications of item (A). |
13 | | The exemption does not include aircraft operated by a |
14 | | commercial air carrier providing scheduled passenger air |
15 | | service pursuant to authority issued under Part 121 or Part |
16 | | 129 of the Federal Aviation Regulations. The changes made to |
17 | | this paragraph (27) by Public Act 98-534 are declarative of |
18 | | existing law. It is the intent of the General Assembly that the |
19 | | exemption under this paragraph (27) applies continuously from |
20 | | January 1, 2010 through December 31, 2024; however, no claim |
21 | | for credit or refund is allowed for taxes paid as a result of |
22 | | the disallowance of this exemption on or after January 1, 2015 |
23 | | and prior to February 5, 2020 ( the effective date of Public Act |
24 | | 101-629) this amendatory Act of the 101st General Assembly . |
25 | | (28) Tangible personal property purchased by a |
26 | | public-facilities corporation, as described in Section |
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1 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
2 | | constructing or furnishing a municipal convention hall, but |
3 | | only if the legal title to the municipal convention hall is |
4 | | transferred to the municipality without any further |
5 | | consideration by or on behalf of the municipality at the time |
6 | | of the completion of the municipal convention hall or upon the |
7 | | retirement or redemption of any bonds or other debt |
8 | | instruments issued by the public-facilities corporation in |
9 | | connection with the development of the municipal convention |
10 | | hall. This exemption includes existing public-facilities |
11 | | corporations as provided in Section 11-65-25 of the Illinois |
12 | | Municipal Code. This paragraph is exempt from the provisions |
13 | | of Section 3-75. |
14 | | (29) Beginning January 1, 2017 and through December 31, |
15 | | 2026, menstrual pads, tampons, and menstrual cups. |
16 | | (30) Tangible personal property transferred to a purchaser |
17 | | who is exempt from the tax imposed by this Act by operation of |
18 | | federal law. This paragraph is exempt from the provisions of |
19 | | Section 3-75. |
20 | | (31) Qualified tangible personal property used in the |
21 | | construction or operation of a data center that has been |
22 | | granted a certificate of exemption by the Department of |
23 | | Commerce and Economic Opportunity, whether that tangible |
24 | | personal property is purchased by the owner, operator, or |
25 | | tenant of the data center or by a contractor or subcontractor |
26 | | of the owner, operator, or tenant. Data centers that would |
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1 | | have qualified for a certificate of exemption prior to January |
2 | | 1, 2020 had Public Act 101-31 this amendatory Act of the 101st |
3 | | General Assembly been in effect, may apply for and obtain an |
4 | | exemption for subsequent purchases of computer equipment or |
5 | | enabling software purchased or leased to upgrade, supplement, |
6 | | or replace computer equipment or enabling software purchased |
7 | | or leased in the original investment that would have |
8 | | qualified. |
9 | | The Department of Commerce and Economic Opportunity shall |
10 | | grant a certificate of exemption under this item (31) to |
11 | | qualified data centers as defined by Section 605-1025 of the |
12 | | Department of Commerce and Economic Opportunity Law of the
|
13 | | Civil Administrative Code of Illinois. |
14 | | For the purposes of this item (31): |
15 | | "Data center" means a building or a series of |
16 | | buildings rehabilitated or constructed to house working |
17 | | servers in one physical location or multiple sites within |
18 | | the State of Illinois. |
19 | | "Qualified tangible personal property" means: |
20 | | electrical systems and equipment; climate control and |
21 | | chilling equipment and systems; mechanical systems and |
22 | | equipment; monitoring and secure systems; emergency |
23 | | generators; hardware; computers; servers; data storage |
24 | | devices; network connectivity equipment; racks; cabinets; |
25 | | telecommunications cabling infrastructure; raised floor |
26 | | systems; peripheral components or systems; software; |
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1 | | mechanical, electrical, or plumbing systems; battery |
2 | | systems; cooling systems and towers; temperature control |
3 | | systems; other cabling; and other data center |
4 | | infrastructure equipment and systems necessary to operate |
5 | | qualified tangible personal property, including fixtures; |
6 | | and component parts of any of the foregoing, including |
7 | | installation, maintenance, repair, refurbishment, and |
8 | | replacement of qualified tangible personal property to |
9 | | generate, transform, transmit, distribute, or manage |
10 | | electricity necessary to operate qualified tangible |
11 | | personal property; and all other tangible personal |
12 | | property that is essential to the operations of a computer |
13 | | data center. The term "qualified tangible personal |
14 | | property" also includes building materials physically |
15 | | incorporated in to the qualifying data center. To document |
16 | | the exemption allowed under this Section, the retailer |
17 | | must obtain from the purchaser a copy of the certificate |
18 | | of eligibility issued by the Department of Commerce and |
19 | | Economic Opportunity. |
20 | | This item (31) is exempt from the provisions of Section |
21 | | 3-75. |
22 | | (32) Beginning July 1, 2022, breast pumps, breast pump |
23 | | collection and storage supplies, and breast pump kits. This |
24 | | item (32) is exempt from the provisions of Section 3-75. As |
25 | | used in this item (32): |
26 | | "Breast pump" means an electrically controlled or |
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1 | | manually controlled pump device designed or marketed to be |
2 | | used to express milk from a human breast during lactation, |
3 | | including the pump device and any battery, AC adapter, or |
4 | | other power supply unit that is used to power the pump |
5 | | device and is packaged and sold with the pump device at the |
6 | | time of sale. |
7 | | "Breast pump collection and storage supplies" means |
8 | | items of tangible personal property designed or marketed |
9 | | to be used in conjunction with a breast pump to collect |
10 | | milk expressed from a human breast and to store collected |
11 | | milk until it is ready for consumption. |
12 | | "Breast pump collection and storage supplies" |
13 | | includes, but is not limited to: breast shields and breast |
14 | | shield connectors; breast pump tubes and tubing adapters; |
15 | | breast pump valves and membranes; backflow protectors and |
16 | | backflow protector adaptors; bottles and bottle caps |
17 | | specific to the operation of the breast pump; and breast |
18 | | milk storage bags. |
19 | | "Breast pump collection and storage supplies" does not |
20 | | include: (1) bottles and bottle caps not specific to the |
21 | | operation of the breast pump; (2) breast pump travel bags |
22 | | and other similar carrying accessories, including ice |
23 | | packs, labels, and other similar products; (3) breast pump |
24 | | cleaning supplies; (4) nursing bras, bra pads, breast |
25 | | shells, and other similar products; and (5) creams, |
26 | | ointments, and other similar products that relieve |
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1 | | breastfeeding-related symptoms or conditions of the |
2 | | breasts or nipples, unless sold as part of a breast pump |
3 | | kit that is pre-packaged by the breast pump manufacturer |
4 | | or distributor. |
5 | | "Breast pump kit" means a kit that: (1) contains no |
6 | | more than a breast pump, breast pump collection and |
7 | | storage supplies, a rechargeable battery for operating the |
8 | | breast pump, a breastmilk cooler, bottle stands, ice |
9 | | packs, and a breast pump carrying case; and (2) is |
10 | | pre-packaged as a breast pump kit by the breast pump |
11 | | manufacturer or distributor. |
12 | | (33) (32) Tangible personal property sold by or on behalf |
13 | | of the State Treasurer pursuant to the Revised Uniform |
14 | | Unclaimed Property Act. This item (33) (32) is exempt from the |
15 | | provisions of Section 3-75. |
16 | | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; |
17 | | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article |
18 | | 70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section |
19 | | 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
|
20 | | Section 5-15. The Service Occupation Tax Act is amended by |
21 | | changing Section 3-5 as follows:
|
22 | | (35 ILCS 115/3-5)
|
23 | | Sec. 3-5. Exemptions. The following tangible personal |
24 | | property is
exempt from the tax imposed by this Act:
|
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1 | | (1) Personal property sold by a corporation, society, |
2 | | association,
foundation, institution, or organization, other |
3 | | than a limited liability
company, that is organized and |
4 | | operated as a not-for-profit service enterprise
for the |
5 | | benefit of persons 65 years of age or older if the personal |
6 | | property
was not purchased by the enterprise for the purpose |
7 | | of resale by the
enterprise.
|
8 | | (2) Personal property purchased by a not-for-profit |
9 | | Illinois county fair
association for use in conducting, |
10 | | operating, or promoting the county fair.
|
11 | | (3) Personal property purchased by any not-for-profit
arts |
12 | | or cultural organization that establishes, by proof required |
13 | | by the
Department by
rule, that it has received an exemption |
14 | | under Section 501(c)(3) of the
Internal Revenue Code and that |
15 | | is organized and operated primarily for the
presentation
or |
16 | | support of arts or cultural programming, activities, or |
17 | | services. These
organizations include, but are not limited to, |
18 | | music and dramatic arts
organizations such as symphony |
19 | | orchestras and theatrical groups, arts and
cultural service |
20 | | organizations, local arts councils, visual arts organizations,
|
21 | | and media arts organizations.
On and after July 1, 2001 (the |
22 | | effective date of Public Act 92-35), however, an entity |
23 | | otherwise eligible for this exemption shall not
make tax-free |
24 | | purchases unless it has an active identification number issued |
25 | | by
the Department.
|
26 | | (4) Legal tender, currency, medallions, or gold or silver |
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1 | | coinage
issued by the State of Illinois, the government of the |
2 | | United States of
America, or the government of any foreign |
3 | | country, and bullion.
|
4 | | (5) Until July 1, 2003 and beginning again on September 1, |
5 | | 2004 through August 30, 2014, graphic arts machinery and |
6 | | equipment, including
repair and
replacement parts, both new |
7 | | and used, and including that manufactured on
special order or |
8 | | purchased for lease, certified by the purchaser to be used
|
9 | | primarily for graphic arts production.
Equipment includes |
10 | | chemicals or chemicals acting as catalysts but only if
the
|
11 | | chemicals or chemicals acting as catalysts effect a direct and |
12 | | immediate change
upon a graphic arts product. Beginning on |
13 | | July 1, 2017, graphic arts machinery and equipment is included |
14 | | in the manufacturing and assembling machinery and equipment |
15 | | exemption under Section 2 of this Act.
|
16 | | (6) Personal property sold by a teacher-sponsored student |
17 | | organization
affiliated with an elementary or secondary school |
18 | | located in Illinois.
|
19 | | (7) Farm machinery and equipment, both new and used, |
20 | | including that
manufactured on special order, certified by the |
21 | | purchaser to be used
primarily for production agriculture or |
22 | | State or federal agricultural
programs, including individual |
23 | | replacement parts for the machinery and
equipment, including |
24 | | machinery and equipment purchased for lease,
and including |
25 | | implements of husbandry defined in Section 1-130 of
the |
26 | | Illinois Vehicle Code, farm machinery and agricultural |
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1 | | chemical and
fertilizer spreaders, and nurse wagons required |
2 | | to be registered
under Section 3-809 of the Illinois Vehicle |
3 | | Code,
but
excluding other motor vehicles required to be |
4 | | registered under the Illinois
Vehicle
Code.
Horticultural |
5 | | polyhouses or hoop houses used for propagating, growing, or
|
6 | | overwintering plants shall be considered farm machinery and |
7 | | equipment under
this item (7).
Agricultural chemical tender |
8 | | tanks and dry boxes shall include units sold
separately from a |
9 | | motor vehicle required to be licensed and units sold mounted
|
10 | | on a motor vehicle required to be licensed if the selling price |
11 | | of the tender
is separately stated.
|
12 | | Farm machinery and equipment shall include precision |
13 | | farming equipment
that is
installed or purchased to be |
14 | | installed on farm machinery and equipment
including, but not |
15 | | limited to, tractors, harvesters, sprayers, planters,
seeders, |
16 | | or spreaders.
Precision farming equipment includes, but is not |
17 | | limited to,
soil testing sensors, computers, monitors, |
18 | | software, global positioning
and mapping systems, and other |
19 | | such equipment.
|
20 | | Farm machinery and equipment also includes computers, |
21 | | sensors, software, and
related equipment used primarily in the
|
22 | | computer-assisted operation of production agriculture |
23 | | facilities, equipment,
and activities such as, but
not limited |
24 | | to,
the collection, monitoring, and correlation of
animal and |
25 | | crop data for the purpose of
formulating animal diets and |
26 | | agricultural chemicals. This item (7) is exempt
from the |
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1 | | provisions of
Section 3-55.
|
2 | | (8) Until June 30, 2013, fuel and petroleum products sold |
3 | | to or used by an air common
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 flight |
6 | | destined for or returning from a location or locations
outside |
7 | | the United States without regard to previous or subsequent |
8 | | domestic
stopovers.
|
9 | | Beginning July 1, 2013, fuel and petroleum products sold |
10 | | to or used by an air carrier, certified by the carrier to be |
11 | | used for consumption, shipment, or storage in the conduct of |
12 | | its business as an air common carrier, for a flight that (i) is |
13 | | engaged in foreign trade or is engaged in trade between the |
14 | | United States and any of its possessions and (ii) transports |
15 | | at least one individual or package for hire from the city of |
16 | | origination to the city of final destination on the same |
17 | | aircraft, without regard to a change in the flight number of |
18 | | that aircraft. |
19 | | (9) Proceeds of mandatory service charges separately
|
20 | | stated on customers' bills for the purchase and consumption of |
21 | | food and
beverages, to the extent that the proceeds of the |
22 | | service charge are in fact
turned over as tips or as a |
23 | | substitute for tips to the employees who
participate directly |
24 | | in preparing, serving, hosting or cleaning up the
food or |
25 | | beverage function with respect to which the service charge is |
26 | | imposed.
|
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1 | | (10) Until July 1, 2003, oil field exploration, drilling, |
2 | | and production
equipment,
including (i) rigs and parts of |
3 | | rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) |
4 | | pipe and tubular goods, including casing and
drill strings, |
5 | | (iii) pumps and pump-jack units, (iv) storage tanks and flow
|
6 | | lines, (v) any individual replacement part for oil field |
7 | | exploration,
drilling, and production equipment, and (vi) |
8 | | machinery and equipment purchased
for lease; but
excluding |
9 | | motor vehicles required to be registered under the Illinois
|
10 | | Vehicle Code.
|
11 | | (11) Photoprocessing machinery and equipment, including |
12 | | repair and
replacement parts, both new and used, including |
13 | | that manufactured on
special order, certified by the purchaser |
14 | | to be used primarily for
photoprocessing, and including |
15 | | photoprocessing machinery and equipment
purchased for lease.
|
16 | | (12) Until July 1, 2028, coal and aggregate exploration, |
17 | | mining, off-highway hauling,
processing,
maintenance, and |
18 | | reclamation equipment, including
replacement parts and |
19 | | equipment, and including
equipment
purchased for lease, but |
20 | | excluding motor vehicles required to be registered
under the |
21 | | Illinois Vehicle Code. The changes made to this Section by |
22 | | Public Act 97-767 apply on and after July 1, 2003, but no claim |
23 | | for credit or refund is allowed on or after August 16, 2013 |
24 | | (the effective date of Public Act 98-456)
for such taxes paid |
25 | | during the period beginning July 1, 2003 and ending on August |
26 | | 16, 2013 (the effective date of Public Act 98-456).
|
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1 | | (13) Beginning January 1, 1992 and through June 30, 2016, |
2 | | food for human consumption that is to be consumed off the |
3 | | premises
where it is sold (other than alcoholic beverages, |
4 | | soft drinks and food that
has been prepared for immediate |
5 | | consumption) and prescription and
non-prescription medicines, |
6 | | drugs, medical appliances, and insulin, urine
testing |
7 | | materials, syringes, and needles used by diabetics, for human |
8 | | use,
when purchased for use by a person receiving medical |
9 | | assistance under
Article V of the Illinois Public Aid Code who |
10 | | resides in a licensed
long-term care facility, as defined in |
11 | | the Nursing Home Care Act, or in a licensed facility as defined |
12 | | in the ID/DD Community Care Act, the MC/DD Act, or the |
13 | | Specialized Mental Health Rehabilitation Act of 2013.
|
14 | | (14) Semen used for artificial insemination of livestock |
15 | | for direct
agricultural production.
|
16 | | (15) Horses, or interests in horses, registered with and |
17 | | meeting the
requirements of any of the
Arabian Horse Club |
18 | | Registry of America, Appaloosa Horse Club, American Quarter
|
19 | | Horse Association, United States
Trotting Association, or |
20 | | Jockey Club, as appropriate, used for
purposes of breeding or |
21 | | racing for prizes. This item (15) is exempt from the |
22 | | provisions of Section 3-55, and the exemption provided for |
23 | | under this item (15) applies for all periods beginning May 30, |
24 | | 1995, but no claim for credit or refund is allowed on or after |
25 | | January 1, 2008 (the effective date of Public Act 95-88)
for |
26 | | such taxes paid during the period beginning May 30, 2000 and |
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1 | | ending on January 1, 2008 (the effective date of Public Act |
2 | | 95-88).
|
3 | | (16) Computers and communications equipment utilized for |
4 | | any
hospital
purpose
and equipment used in the diagnosis,
|
5 | | analysis, or treatment of hospital patients sold to a lessor |
6 | | who leases the
equipment, under a lease of one year or longer |
7 | | executed or in effect at the
time of the purchase, to a
|
8 | | hospital
that has been issued an active tax exemption |
9 | | identification number by the
Department under Section 1g of |
10 | | the Retailers' Occupation Tax Act.
|
11 | | (17) Personal property sold to a lessor who leases the
|
12 | | property, under a
lease of one year or longer executed or in |
13 | | effect at the time of the purchase,
to a governmental body
that |
14 | | has been issued an active tax exemption identification number |
15 | | by the
Department under Section 1g of the Retailers' |
16 | | Occupation Tax Act.
|
17 | | (18) Beginning with taxable years ending on or after |
18 | | December
31, 1995
and
ending with taxable years ending on or |
19 | | before December 31, 2004,
personal property that is
donated |
20 | | for disaster relief to be used in a State or federally declared
|
21 | | disaster area in Illinois or bordering Illinois by a |
22 | | manufacturer or retailer
that is registered in this State to a |
23 | | corporation, society, association,
foundation, or institution |
24 | | that has been issued a sales tax exemption
identification |
25 | | number by the Department that assists victims of the disaster
|
26 | | who reside within the declared disaster area.
|
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1 | | (19) Beginning with taxable years ending on or after |
2 | | December
31, 1995 and
ending with taxable years ending on or |
3 | | before December 31, 2004, personal
property that is used in |
4 | | the performance of infrastructure repairs in this
State, |
5 | | including but not limited to municipal roads and streets, |
6 | | access roads,
bridges, sidewalks, waste disposal systems, |
7 | | water and sewer line extensions,
water distribution and |
8 | | purification facilities, storm water drainage and
retention |
9 | | facilities, and sewage treatment facilities, resulting from a |
10 | | State
or federally declared disaster in Illinois or bordering |
11 | | Illinois when such
repairs are initiated on facilities located |
12 | | in the declared disaster area
within 6 months after the |
13 | | disaster.
|
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
|
16 | | in the
Wildlife Code. This paragraph is exempt from the |
17 | | provisions
of
Section 3-55.
|
18 | | (21) A motor vehicle, as that term is defined in Section |
19 | | 1-146
of the
Illinois Vehicle Code, that is donated to a |
20 | | corporation, limited liability
company, society, association, |
21 | | foundation, or institution that is determined by
the |
22 | | Department to be organized and operated exclusively for |
23 | | educational
purposes. For purposes of this exemption, "a |
24 | | corporation, limited liability
company, society, association, |
25 | | foundation, or institution organized and
operated
exclusively |
26 | | for educational purposes" means all tax-supported public |
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1 | | schools,
private schools that offer systematic instruction in |
2 | | useful branches of
learning by methods common to public |
3 | | schools and that compare favorably in
their scope and |
4 | | intensity with the course of study presented in tax-supported
|
5 | | schools, and vocational or technical schools or institutes |
6 | | organized and
operated exclusively to provide a course of |
7 | | study of not less than 6 weeks
duration and designed to prepare |
8 | | individuals to follow a trade or to pursue a
manual, |
9 | | technical, mechanical, industrial, business, or commercial
|
10 | | occupation.
|
11 | | (22) Beginning January 1, 2000, personal property, |
12 | | including
food,
purchased through fundraising
events for the |
13 | | benefit of
a public or private elementary or
secondary school, |
14 | | a group of those schools, or one or more school
districts if |
15 | | the events are
sponsored by an entity recognized by the school |
16 | | district that consists
primarily of volunteers and includes
|
17 | | parents and teachers of the school children. This paragraph |
18 | | does not apply
to fundraising
events (i) for the benefit of |
19 | | private home instruction or (ii)
for which the fundraising |
20 | | entity purchases the personal property sold at
the events from |
21 | | another individual or entity that sold the property for the
|
22 | | purpose of resale by the fundraising entity and that
profits |
23 | | from the sale to the
fundraising entity. This paragraph is |
24 | | exempt
from the provisions
of Section 3-55.
|
25 | | (23) Beginning January 1, 2000
and through December 31, |
26 | | 2001, new or used automatic vending
machines that prepare and |
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1 | | serve hot food and beverages, including coffee, soup,
and
|
2 | | other items, and replacement parts for these machines.
|
3 | | Beginning January 1,
2002 and through June 30, 2003, machines |
4 | | and parts for
machines used in commercial, coin-operated |
5 | | amusement
and vending business if a use or occupation tax is |
6 | | paid on the gross receipts
derived from
the use of the |
7 | | commercial, coin-operated amusement and vending machines.
This |
8 | | paragraph is exempt from the provisions of Section 3-55.
|
9 | | (24) Beginning
on August 2, 2001 (the effective date of |
10 | | Public Act 92-227),
computers and communications equipment
|
11 | | utilized for any hospital purpose and equipment used in the |
12 | | diagnosis,
analysis, or treatment of hospital patients sold to |
13 | | a lessor who leases the
equipment, under a lease of one year or |
14 | | longer executed or in effect at the
time of the purchase, to a |
15 | | hospital that has been issued an active tax
exemption |
16 | | identification number by the Department under Section 1g of |
17 | | the
Retailers' Occupation Tax Act. This paragraph is exempt |
18 | | from the provisions of
Section 3-55.
|
19 | | (25) Beginning
on August 2, 2001 (the effective date of |
20 | | Public Act 92-227),
personal property sold to a lessor who
|
21 | | leases the property, under a lease of one year or longer |
22 | | executed or in effect
at the time of the purchase, to a |
23 | | governmental body that has been issued an
active tax exemption |
24 | | identification number by the Department under Section 1g
of |
25 | | the Retailers' Occupation Tax Act. This paragraph is exempt |
26 | | from the
provisions of Section 3-55.
|
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1 | | (26) Beginning on January 1, 2002 and through June 30, |
2 | | 2016, tangible personal property
purchased
from an Illinois |
3 | | retailer by a taxpayer engaged in centralized purchasing
|
4 | | activities in Illinois who will, upon receipt of the property |
5 | | in Illinois,
temporarily store the property in Illinois (i) |
6 | | for the purpose of subsequently
transporting it outside this |
7 | | State for use or consumption thereafter solely
outside this |
8 | | State or (ii) for the purpose of being processed, fabricated, |
9 | | or
manufactured into, attached to, or incorporated into other |
10 | | tangible personal
property to be transported outside this |
11 | | State and thereafter used or consumed
solely outside this |
12 | | State. The Director of Revenue shall, pursuant to rules
|
13 | | adopted in accordance with the Illinois Administrative |
14 | | Procedure Act, issue a
permit to any taxpayer in good standing |
15 | | with the Department who is eligible for
the exemption under |
16 | | this paragraph (26). The permit issued under
this paragraph |
17 | | (26) shall authorize the holder, to the extent and
in the |
18 | | manner specified in the rules adopted under this Act, to |
19 | | purchase
tangible personal property from a retailer exempt |
20 | | from the taxes imposed by
this Act. Taxpayers shall maintain |
21 | | all necessary books and records to
substantiate the use and |
22 | | consumption of all such tangible personal property
outside of |
23 | | the State of Illinois.
|
24 | | (27) Beginning January 1, 2008, tangible personal property |
25 | | used in the construction or maintenance of a community water |
26 | | supply, as defined under Section 3.145 of the Environmental |
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1 | | Protection Act, that is operated by a not-for-profit |
2 | | corporation that holds a valid water supply permit issued |
3 | | under Title IV of the Environmental Protection Act. This |
4 | | paragraph is exempt from the provisions of Section 3-55.
|
5 | | (28) Tangible personal property sold to a |
6 | | public-facilities corporation, as described in Section |
7 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
8 | | constructing or furnishing a municipal convention hall, but |
9 | | only if the legal title to the municipal convention hall is |
10 | | transferred to the municipality without any further |
11 | | consideration by or on behalf of the municipality at the time |
12 | | of the completion of the municipal convention hall or upon the |
13 | | retirement or redemption of any bonds or other debt |
14 | | instruments issued by the public-facilities corporation in |
15 | | connection with the development of the municipal convention |
16 | | hall. This exemption includes existing public-facilities |
17 | | corporations as provided in Section 11-65-25 of the Illinois |
18 | | Municipal Code. This paragraph is exempt from the provisions |
19 | | of Section 3-55. |
20 | | (29) Beginning January 1, 2010 and continuing through |
21 | | December 31, 2029 December 31, 2024 , materials, parts, |
22 | | equipment, components, and furnishings incorporated into or |
23 | | upon an aircraft as part of the modification, refurbishment, |
24 | | completion, replacement, repair, or maintenance of the |
25 | | aircraft. This exemption includes consumable supplies used in |
26 | | the modification, refurbishment, completion, replacement, |
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1 | | repair, and maintenance of aircraft . However, until January 1, |
2 | | 2024, this exemption , but excludes any materials, parts, |
3 | | equipment, components, and consumable supplies used in the |
4 | | modification, replacement, repair, and maintenance of aircraft |
5 | | engines or power plants, whether such engines or power plants |
6 | | are installed or uninstalled upon any such aircraft. |
7 | | "Consumable supplies" include, but are not limited to, |
8 | | adhesive, tape, sandpaper, general purpose lubricants, |
9 | | cleaning solution, latex gloves, and protective films. |
10 | | Beginning January 1, 2010 and continuing through December |
11 | | 31, 2023, this This exemption applies only to the transfer of |
12 | | qualifying tangible personal property incident to the |
13 | | modification, refurbishment, completion, replacement, repair, |
14 | | or maintenance of an aircraft by persons who (i) hold an Air |
15 | | Agency Certificate and are empowered to operate an approved |
16 | | repair station by the Federal Aviation Administration, (ii) |
17 | | have a Class IV Rating, and (iii) conduct operations in |
18 | | accordance with Part 145 of the Federal Aviation Regulations. |
19 | | The exemption does not include aircraft operated by a |
20 | | commercial air carrier providing scheduled passenger air |
21 | | service pursuant to authority issued under Part 121 or Part |
22 | | 129 of the Federal Aviation Regulations. From January 1, 2024 |
23 | | through December 31, 2029, this exemption applies only to the |
24 | | use of qualifying tangible personal property by: (A) persons |
25 | | who modify, refurbish, complete, repair, replace, or maintain |
26 | | aircraft and who (i) hold an Air Agency Certificate and are |
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1 | | empowered to operate an approved repair station by the Federal |
2 | | Aviation Administration, (ii) have a Class IV Rating, and |
3 | | (iii) conduct operations in accordance with Part 145 of the |
4 | | Federal Aviation Regulations; and (B) persons who engage in |
5 | | the modification, replacement, repair, and maintenance of |
6 | | aircraft engines or power plants without regard to whether or |
7 | | not those persons meet the qualifications of item (A). |
8 | | The changes made to this paragraph (29) by Public Act |
9 | | 98-534 are declarative of existing law. It is the intent of the |
10 | | General Assembly that the exemption under this paragraph (29) |
11 | | applies continuously from January 1, 2010 through December 31, |
12 | | 2024; however, no claim for credit or refund is allowed for |
13 | | taxes paid as a result of the disallowance of this exemption on |
14 | | or after January 1, 2015 and prior to February 5, 2020 ( the |
15 | | effective date of Public Act 101-629) this amendatory Act of |
16 | | the 101st General Assembly . |
17 | | (30) Beginning January 1, 2017 and through December 31, |
18 | | 2026, menstrual pads, tampons, and menstrual cups. |
19 | | (31) Tangible personal property transferred to a purchaser |
20 | | who is exempt from tax by operation of federal law. This |
21 | | paragraph is exempt from the provisions of Section 3-55. |
22 | | (32) Qualified tangible personal property used in the |
23 | | construction or operation of a data center that has been |
24 | | granted a certificate of exemption by the Department of |
25 | | Commerce and Economic Opportunity, whether that tangible |
26 | | personal property is purchased by the owner, operator, or |
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1 | | tenant of the data center or by a contractor or subcontractor |
2 | | of the owner, operator, or tenant. Data centers that would |
3 | | have qualified for a certificate of exemption prior to January |
4 | | 1, 2020 had Public Act 101-31 this amendatory Act of the 101st |
5 | | General Assembly been in effect, may apply for and obtain an |
6 | | exemption for subsequent purchases of computer equipment or |
7 | | enabling software purchased or leased to upgrade, supplement, |
8 | | or replace computer equipment or enabling software purchased |
9 | | or leased in the original investment that would have |
10 | | qualified. |
11 | | The Department of Commerce and Economic Opportunity shall |
12 | | grant a certificate of exemption under this item (32) to |
13 | | qualified data centers as defined by Section 605-1025 of the |
14 | | Department of Commerce and Economic Opportunity Law of the
|
15 | | Civil Administrative Code of Illinois. |
16 | | For the purposes of this item (32): |
17 | | "Data center" means a building or a series of |
18 | | buildings rehabilitated or constructed to house working |
19 | | servers in one physical location or multiple sites within |
20 | | the State of Illinois. |
21 | | "Qualified tangible personal property" means: |
22 | | electrical systems and equipment; climate control and |
23 | | chilling equipment and systems; mechanical systems and |
24 | | equipment; monitoring and secure systems; emergency |
25 | | generators; hardware; computers; servers; data storage |
26 | | devices; network connectivity equipment; racks; cabinets; |
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1 | | telecommunications cabling infrastructure; raised floor |
2 | | systems; peripheral components or systems; software; |
3 | | mechanical, electrical, or plumbing systems; battery |
4 | | systems; cooling systems and towers; temperature control |
5 | | systems; other cabling; and other data center |
6 | | infrastructure equipment and systems necessary to operate |
7 | | qualified tangible personal property, including fixtures; |
8 | | and component parts of any of the foregoing, including |
9 | | installation, maintenance, repair, refurbishment, and |
10 | | replacement of qualified tangible personal property to |
11 | | generate, transform, transmit, distribute, or manage |
12 | | electricity necessary to operate qualified tangible |
13 | | personal property; and all other tangible personal |
14 | | property that is essential to the operations of a computer |
15 | | data center. The term "qualified tangible personal |
16 | | property" also includes building materials physically |
17 | | incorporated in to the qualifying data center. To document |
18 | | the exemption allowed under this Section, the retailer |
19 | | must obtain from the purchaser a copy of the certificate |
20 | | of eligibility issued by the Department of Commerce and |
21 | | Economic Opportunity. |
22 | | This item (32) is exempt from the provisions of Section |
23 | | 3-55. |
24 | | (33) Beginning July 1, 2022, breast pumps, breast pump |
25 | | collection and storage supplies, and breast pump kits. This |
26 | | item (33) is exempt from the provisions of Section 3-55. As |
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1 | | used in this item (33): |
2 | | "Breast pump" means an electrically controlled or |
3 | | manually controlled pump device designed or marketed to be |
4 | | used to express milk from a human breast during lactation, |
5 | | including the pump device and any battery, AC adapter, or |
6 | | other power supply unit that is used to power the pump |
7 | | device and is packaged and sold with the pump device at the |
8 | | time of sale. |
9 | | "Breast pump collection and storage supplies" means |
10 | | items of tangible personal property designed or marketed |
11 | | to be used in conjunction with a breast pump to collect |
12 | | milk expressed from a human breast and to store collected |
13 | | milk until it is ready for consumption. |
14 | | "Breast pump collection and storage supplies" |
15 | | includes, but is not limited to: breast shields and breast |
16 | | shield connectors; breast pump tubes and tubing adapters; |
17 | | breast pump valves and membranes; backflow protectors and |
18 | | backflow protector adaptors; bottles and bottle caps |
19 | | specific to the operation of the breast pump; and breast |
20 | | milk storage bags. |
21 | | "Breast pump collection and storage supplies" does not |
22 | | include: (1) bottles and bottle caps not specific to the |
23 | | operation of the breast pump; (2) breast pump travel bags |
24 | | and other similar carrying accessories, including ice |
25 | | packs, labels, and other similar products; (3) breast pump |
26 | | cleaning supplies; (4) nursing bras, bra pads, breast |
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1 | | shells, and other similar products; and (5) creams, |
2 | | ointments, and other similar products that relieve |
3 | | breastfeeding-related symptoms or conditions of the |
4 | | breasts or nipples, unless sold as part of a breast pump |
5 | | kit that is pre-packaged by the breast pump manufacturer |
6 | | or distributor. |
7 | | "Breast pump kit" means a kit that: (1) contains no |
8 | | more than a breast pump, breast pump collection and |
9 | | storage supplies, a rechargeable battery for operating the |
10 | | breast pump, a breastmilk cooler, bottle stands, ice |
11 | | packs, and a breast pump carrying case; and (2) is |
12 | | pre-packaged as a breast pump kit by the breast pump |
13 | | manufacturer or distributor. |
14 | | (34) (33) Tangible personal property sold by or on behalf |
15 | | of the State Treasurer pursuant to the Revised Uniform |
16 | | Unclaimed Property Act. This item (34) (33) is exempt from the |
17 | | provisions of Section 3-55. |
18 | | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; |
19 | | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article |
20 | | 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section |
21 | | 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
|
22 | | Section 5-20. The Retailers' Occupation Tax Act is amended |
23 | | by changing Section 2-5 as follows:
|
24 | | (35 ILCS 120/2-5)
|
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1 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from |
2 | | the sale of
the following tangible personal property are |
3 | | exempt from the tax imposed
by this Act:
|
4 | | (1) Farm chemicals.
|
5 | | (2) Farm machinery and equipment, both new and used, |
6 | | including that
manufactured on special order, certified by |
7 | | the purchaser to be used
primarily for production |
8 | | agriculture or State or federal agricultural
programs, |
9 | | including individual replacement parts for the machinery |
10 | | and
equipment, including machinery and equipment purchased |
11 | | for lease,
and including implements of husbandry defined |
12 | | in Section 1-130 of
the Illinois Vehicle Code, farm |
13 | | machinery and agricultural chemical and
fertilizer |
14 | | spreaders, and nurse wagons required to be registered
|
15 | | under Section 3-809 of the Illinois Vehicle Code,
but
|
16 | | excluding other motor vehicles required to be registered |
17 | | under the Illinois
Vehicle Code.
Horticultural polyhouses |
18 | | or hoop houses used for propagating, growing, or
|
19 | | overwintering plants shall be considered farm machinery |
20 | | and equipment under
this item (2).
Agricultural chemical |
21 | | tender tanks and dry boxes shall include units sold
|
22 | | separately from a motor vehicle required to be licensed |
23 | | and units sold mounted
on a motor vehicle required to be |
24 | | licensed, if the selling price of the tender
is separately |
25 | | stated.
|
26 | | Farm machinery and equipment shall include precision |
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1 | | farming equipment
that is
installed or purchased to be |
2 | | installed on farm machinery and equipment
including, but |
3 | | not limited to, tractors, harvesters, sprayers, planters,
|
4 | | seeders, or spreaders.
Precision farming equipment |
5 | | includes, but is not limited to,
soil testing sensors, |
6 | | computers, monitors, software, global positioning
and |
7 | | mapping systems, and other such equipment.
|
8 | | Farm machinery and equipment also includes computers, |
9 | | sensors, software, and
related equipment used primarily in |
10 | | the
computer-assisted operation of production agriculture |
11 | | facilities, equipment,
and activities such as, but
not |
12 | | limited to,
the collection, monitoring, and correlation of
|
13 | | animal and crop data for the purpose of
formulating animal |
14 | | diets and agricultural chemicals. This item (2) is exempt
|
15 | | from the provisions of
Section 2-70.
|
16 | | (3) Until July 1, 2003, distillation machinery and |
17 | | equipment, sold as a
unit or kit,
assembled or installed |
18 | | by the retailer, certified by the user to be used
only for |
19 | | the production of ethyl alcohol that will be used for |
20 | | consumption
as motor fuel or as a component of motor fuel |
21 | | for the personal use of the
user, and not subject to sale |
22 | | or resale.
|
23 | | (4) Until July 1, 2003 and beginning again September |
24 | | 1, 2004 through August 30, 2014, graphic arts machinery |
25 | | and equipment, including
repair and
replacement parts, |
26 | | both new and used, and including that manufactured on
|
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1 | | special order or purchased for lease, certified by the |
2 | | purchaser to be used
primarily for graphic arts |
3 | | production.
Equipment includes chemicals or
chemicals |
4 | | acting as catalysts but only if
the chemicals or chemicals |
5 | | acting as catalysts effect a direct and immediate
change |
6 | | upon a
graphic arts product. Beginning on July 1, 2017, |
7 | | graphic arts machinery and equipment is included in the |
8 | | manufacturing and assembling machinery and equipment |
9 | | exemption under paragraph (14).
|
10 | | (5) A motor vehicle that is used for automobile |
11 | | renting, as defined in the Automobile Renting Occupation |
12 | | and Use Tax Act. This paragraph is exempt from
the |
13 | | provisions of Section 2-70.
|
14 | | (6) Personal property sold by a teacher-sponsored |
15 | | student organization
affiliated with an elementary or |
16 | | secondary school located in Illinois.
|
17 | | (7) Until July 1, 2003, proceeds of that portion of |
18 | | the selling price of
a passenger car the
sale of which is |
19 | | subject to the Replacement Vehicle Tax.
|
20 | | (8) Personal property sold to an Illinois county fair |
21 | | association for
use in conducting, operating, or promoting |
22 | | the county fair.
|
23 | | (9) Personal property sold to a not-for-profit arts
or |
24 | | cultural organization that establishes, by proof required |
25 | | by the Department
by
rule, that it has received an |
26 | | exemption under Section 501(c)(3) of the
Internal Revenue |
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1 | | Code and that is organized and operated primarily for the
|
2 | | presentation
or support of arts or cultural programming, |
3 | | activities, or services. These
organizations include, but |
4 | | are not limited to, music and dramatic arts
organizations |
5 | | such as symphony orchestras and theatrical groups, arts |
6 | | and
cultural service organizations, local arts councils, |
7 | | visual arts organizations,
and media arts organizations.
|
8 | | On and after July 1, 2001 (the effective date of Public Act |
9 | | 92-35), however, an entity otherwise eligible for this |
10 | | exemption shall not
make tax-free purchases unless it has |
11 | | an active identification number issued by
the Department.
|
12 | | (10) Personal property sold by a corporation, society, |
13 | | association,
foundation, institution, or organization, |
14 | | other than a limited liability
company, that is organized |
15 | | and operated as a not-for-profit service enterprise
for |
16 | | the benefit of persons 65 years of age or older if the |
17 | | personal property
was not purchased by the enterprise for |
18 | | the purpose of resale by the
enterprise.
|
19 | | (11) Personal property sold to a governmental body, to |
20 | | a corporation,
society, association, foundation, or |
21 | | institution organized and operated
exclusively for |
22 | | charitable, religious, or educational purposes, or to a
|
23 | | not-for-profit corporation, society, association, |
24 | | foundation, institution,
or organization that has no |
25 | | compensated officers or employees and that is
organized |
26 | | and operated primarily for the recreation of persons 55 |
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1 | | years of
age or older. A limited liability company may |
2 | | qualify for the exemption under
this paragraph only if the |
3 | | limited liability company is organized and operated
|
4 | | exclusively for educational purposes. On and after July 1, |
5 | | 1987, however, no
entity otherwise eligible for this |
6 | | exemption shall make tax-free purchases
unless it has an |
7 | | active identification number issued by the Department.
|
8 | | (12) (Blank).
|
9 | | (12-5) On and after July 1, 2003 and through June 30, |
10 | | 2004, motor vehicles of the second division
with a gross |
11 | | vehicle weight in excess of 8,000 pounds
that
are
subject |
12 | | to the commercial distribution fee imposed under Section |
13 | | 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, |
14 | | 2004 and through June 30, 2005, the use in this State of |
15 | | motor vehicles of the second division: (i) with a gross |
16 | | vehicle weight rating in excess of 8,000 pounds; (ii) that |
17 | | are subject to the commercial distribution fee imposed |
18 | | under Section 3-815.1 of the Illinois Vehicle Code; and |
19 | | (iii) that are primarily used for commercial purposes. |
20 | | Through June 30, 2005, this
exemption applies to repair |
21 | | and replacement parts added
after the
initial purchase of |
22 | | such a motor vehicle if that motor vehicle is used in a
|
23 | | manner that
would qualify for the rolling stock exemption |
24 | | otherwise provided for in this
Act. For purposes of this |
25 | | paragraph, "used for commercial purposes" means the |
26 | | transportation of persons or property in furtherance of |
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1 | | any commercial or industrial enterprise whether for-hire |
2 | | or not.
|
3 | | (13) Proceeds from sales to owners, lessors, or
|
4 | | shippers of
tangible personal property that is utilized by |
5 | | interstate carriers for
hire for use as rolling stock |
6 | | moving in interstate commerce
and equipment operated by a |
7 | | telecommunications provider, licensed as a
common carrier |
8 | | by the Federal Communications Commission, which is
|
9 | | permanently installed in or affixed to aircraft moving in |
10 | | interstate commerce.
|
11 | | (14) Machinery and equipment that will be used by the |
12 | | purchaser, or a
lessee of the purchaser, primarily in the |
13 | | process of manufacturing or
assembling tangible personal |
14 | | property for wholesale or retail sale or
lease, whether |
15 | | the sale or lease is made directly by the manufacturer or |
16 | | by
some other person, whether the materials used in the |
17 | | process are owned by
the manufacturer or some other |
18 | | person, or whether the sale or lease is made
apart from or |
19 | | as an incident to the seller's engaging in the service
|
20 | | occupation of producing machines, tools, dies, jigs, |
21 | | patterns, gauges, or
other similar items of no commercial |
22 | | value on special order for a particular
purchaser. The |
23 | | exemption provided by this paragraph (14) does not include |
24 | | machinery and equipment used in (i) the generation of |
25 | | electricity for wholesale or retail sale; (ii) the |
26 | | generation or treatment of natural or artificial gas for |
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1 | | wholesale or retail sale that is delivered to customers |
2 | | through pipes, pipelines, or mains; or (iii) the treatment |
3 | | of water for wholesale or retail sale that is delivered to |
4 | | customers through pipes, pipelines, or mains. The |
5 | | provisions of Public Act 98-583 are declaratory of |
6 | | existing law as to the meaning and scope of this |
7 | | exemption. Beginning on July 1, 2017, the exemption |
8 | | provided by this paragraph (14) includes, but is not |
9 | | limited to, graphic arts machinery and equipment, as |
10 | | defined in paragraph (4) of this Section.
|
11 | | (15) Proceeds of mandatory service charges separately |
12 | | stated on
customers' bills for purchase and consumption of |
13 | | food and beverages, to the
extent that the proceeds of the |
14 | | service charge are in fact turned over as
tips or as a |
15 | | substitute for tips to the employees who participate |
16 | | directly
in preparing, serving, hosting or cleaning up the |
17 | | food or beverage function
with respect to which the |
18 | | service charge is imposed.
|
19 | | (16) Tangible personal property sold to a purchaser if |
20 | | the purchaser is exempt from use tax by operation of |
21 | | federal law. This paragraph is exempt from the provisions |
22 | | of Section 2-70.
|
23 | | (17) Tangible personal property sold to a common |
24 | | carrier by rail or
motor that
receives the physical |
25 | | possession of the property in Illinois and that
transports |
26 | | the property, or shares with another common carrier in the
|
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1 | | transportation of the property, out of Illinois on a |
2 | | standard uniform bill
of lading showing the seller of the |
3 | | property as the shipper or consignor of
the property to a |
4 | | destination outside Illinois, for use outside Illinois.
|
5 | | (18) Legal tender, currency, medallions, or gold or |
6 | | silver coinage
issued by the State of Illinois, the |
7 | | government of the United States of
America, or the |
8 | | government of any foreign country, and bullion.
|
9 | | (19) Until July 1, 2003, oil field exploration, |
10 | | drilling, and production
equipment, including
(i) rigs and |
11 | | parts of rigs, rotary rigs, cable tool
rigs, and workover |
12 | | rigs, (ii) pipe and tubular goods, including casing and
|
13 | | drill strings, (iii) pumps and pump-jack units, (iv) |
14 | | storage tanks and flow
lines, (v) any individual |
15 | | replacement part for oil field exploration,
drilling, and |
16 | | production equipment, and (vi) machinery and equipment |
17 | | purchased
for lease; but
excluding motor vehicles required |
18 | | to be registered under the Illinois
Vehicle Code.
|
19 | | (20) Photoprocessing machinery and equipment, |
20 | | including repair and
replacement parts, both new and used, |
21 | | including that manufactured on
special order, certified by |
22 | | the purchaser to be used primarily for
photoprocessing, |
23 | | and including photoprocessing machinery and equipment
|
24 | | purchased for lease.
|
25 | | (21) Until July 1, 2028, coal and aggregate |
26 | | exploration, mining, off-highway hauling,
processing,
|
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1 | | maintenance, and reclamation equipment, including
|
2 | | replacement parts and equipment, and including
equipment |
3 | | purchased for lease, but excluding motor vehicles required |
4 | | to be
registered under the Illinois Vehicle Code. The |
5 | | changes made to this Section by Public Act 97-767 apply on |
6 | | and after July 1, 2003, but no claim for credit or refund |
7 | | is allowed on or after August 16, 2013 (the effective date |
8 | | of Public Act 98-456)
for such taxes paid during the |
9 | | period beginning July 1, 2003 and ending on August 16, |
10 | | 2013 (the effective date of Public Act 98-456).
|
11 | | (22) Until June 30, 2013, fuel and petroleum products |
12 | | sold to or used by an air carrier,
certified by the carrier |
13 | | to be used for consumption, shipment, or storage
in the |
14 | | conduct of its business as an air common carrier, for a |
15 | | flight
destined for or returning from a location or |
16 | | locations
outside the United States without regard to |
17 | | previous or subsequent domestic
stopovers.
|
18 | | Beginning July 1, 2013, fuel and petroleum products |
19 | | sold to or used by an air carrier, certified by the carrier |
20 | | to be used for consumption, shipment, or storage in the |
21 | | conduct of its business as an air common carrier, for a |
22 | | flight that (i) is engaged in foreign trade or is engaged |
23 | | in trade between the United States and any of its |
24 | | possessions and (ii) transports at least one individual or |
25 | | package for hire from the city of origination to the city |
26 | | of final destination on the same aircraft, without regard |
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1 | | to a change in the flight number of that aircraft. |
2 | | (23) A transaction in which the purchase order is |
3 | | received by a florist
who is located outside Illinois, but |
4 | | who has a florist located in Illinois
deliver the property |
5 | | to the purchaser or the purchaser's donee in Illinois.
|
6 | | (24) Fuel consumed or used in the operation of ships, |
7 | | barges, or vessels
that are used primarily in or for the |
8 | | transportation of property or the
conveyance of persons |
9 | | for hire on rivers bordering on this State if the
fuel is |
10 | | delivered by the seller to the purchaser's barge, ship, or |
11 | | vessel
while it is afloat upon that bordering river.
|
12 | | (25) Except as provided in item (25-5) of this |
13 | | Section, a
motor vehicle sold in this State to a |
14 | | nonresident even though the
motor vehicle is delivered to |
15 | | the nonresident in this State, if the motor
vehicle is not |
16 | | to be titled in this State, and if a drive-away permit
is |
17 | | issued to the motor vehicle as provided in Section 3-603 |
18 | | of the Illinois
Vehicle Code or if the nonresident |
19 | | purchaser has vehicle registration
plates to transfer to |
20 | | the motor vehicle upon returning to his or her home
state. |
21 | | The issuance of the drive-away permit or having
the
|
22 | | out-of-state registration plates to be transferred is |
23 | | prima facie evidence
that the motor vehicle will not be |
24 | | titled in this State.
|
25 | | (25-5) The exemption under item (25) does not apply if |
26 | | the state in which the motor vehicle will be titled does |
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1 | | not allow a reciprocal exemption for a motor vehicle sold |
2 | | and delivered in that state to an Illinois resident but |
3 | | titled in Illinois. The tax collected under this Act on |
4 | | the sale of a motor vehicle in this State to a resident of |
5 | | another state that does not allow a reciprocal exemption |
6 | | shall be imposed at a rate equal to the state's rate of tax |
7 | | on taxable property in the state in which the purchaser is |
8 | | a resident, except that the tax shall not exceed the tax |
9 | | that would otherwise be imposed under this Act. At the |
10 | | time of the sale, the purchaser shall execute a statement, |
11 | | signed under penalty of perjury, of his or her intent to |
12 | | title the vehicle in the state in which the purchaser is a |
13 | | resident within 30 days after the sale and of the fact of |
14 | | the payment to the State of Illinois of tax in an amount |
15 | | equivalent to the state's rate of tax on taxable property |
16 | | in his or her state of residence and shall submit the |
17 | | statement to the appropriate tax collection agency in his |
18 | | or her state of residence. In addition, the retailer must |
19 | | retain a signed copy of the statement in his or her |
20 | | records. Nothing in this item shall be construed to |
21 | | require the removal of the vehicle from this state |
22 | | following the filing of an intent to title the vehicle in |
23 | | the purchaser's state of residence if the purchaser titles |
24 | | the vehicle in his or her state of residence within 30 days |
25 | | after the date of sale. The tax collected under this Act in |
26 | | accordance with this item (25-5) shall be proportionately |
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1 | | distributed as if the tax were collected at the 6.25% |
2 | | general rate imposed under this Act.
|
3 | | (25-7) Beginning on July 1, 2007, no tax is imposed |
4 | | under this Act on the sale of an aircraft, as defined in |
5 | | Section 3 of the Illinois Aeronautics Act, if all of the |
6 | | following conditions are met: |
7 | | (1) the aircraft leaves this State within 15 days |
8 | | after the later of either the issuance of the final |
9 | | billing for the sale of the aircraft, or the |
10 | | authorized approval for return to service, completion |
11 | | of the maintenance record entry, and completion of the |
12 | | test flight and ground test for inspection, as |
13 | | required by 14 CFR C.F.R. 91.407; |
14 | | (2) the aircraft is not based or registered in |
15 | | this State after the sale of the aircraft; and |
16 | | (3) the seller retains in his or her books and |
17 | | records and provides to the Department a signed and |
18 | | dated certification from the purchaser, on a form |
19 | | prescribed by the Department, certifying that the |
20 | | requirements of this item (25-7) are met. The |
21 | | certificate must also include the name and address of |
22 | | the purchaser, the address of the location where the |
23 | | aircraft is to be titled or registered, the address of |
24 | | the primary physical location of the aircraft, and |
25 | | other information that the Department may reasonably |
26 | | require. |
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1 | | For purposes of this item (25-7): |
2 | | "Based in this State" means hangared, stored, or |
3 | | otherwise used, excluding post-sale customizations as |
4 | | defined in this Section, for 10 or more days in each |
5 | | 12-month period immediately following the date of the sale |
6 | | of the aircraft. |
7 | | "Registered in this State" means an aircraft |
8 | | registered with the Department of Transportation, |
9 | | Aeronautics Division, or titled or registered with the |
10 | | Federal Aviation Administration to an address located in |
11 | | this State. |
12 | | This paragraph (25-7) is exempt from the provisions
of
|
13 | | Section 2-70.
|
14 | | (26) Semen used for artificial insemination of |
15 | | livestock for direct
agricultural production.
|
16 | | (27) Horses, or interests in horses, registered with |
17 | | and meeting the
requirements of any of the
Arabian Horse |
18 | | Club Registry of America, Appaloosa Horse Club, American |
19 | | Quarter
Horse Association, United States
Trotting |
20 | | Association, or Jockey Club, as appropriate, used for
|
21 | | purposes of breeding or racing for prizes. This item (27) |
22 | | is exempt from the provisions of Section 2-70, and the |
23 | | exemption provided for under this item (27) applies for |
24 | | all periods beginning May 30, 1995, but no claim for |
25 | | credit or refund is allowed on or after January 1, 2008 |
26 | | (the effective date of Public Act 95-88)
for such taxes |
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1 | | paid during the period beginning May 30, 2000 and ending |
2 | | on January 1, 2008 (the effective date of Public Act |
3 | | 95-88).
|
4 | | (28) Computers and communications equipment utilized |
5 | | for any
hospital
purpose
and equipment used in the |
6 | | diagnosis,
analysis, or treatment of hospital patients |
7 | | sold to a lessor who leases the
equipment, under a lease of |
8 | | one year or longer executed or in effect at the
time of the |
9 | | purchase, to a
hospital
that has been issued an active tax |
10 | | exemption identification number by the
Department under |
11 | | Section 1g of this Act.
|
12 | | (29) Personal property sold to a lessor who leases the
|
13 | | property, under a
lease of one year or longer executed or |
14 | | in effect at the time of the purchase,
to a governmental |
15 | | body
that has been issued an active tax exemption |
16 | | identification number by the
Department under Section 1g |
17 | | of this Act.
|
18 | | (30) Beginning with taxable years ending on or after |
19 | | December
31, 1995
and
ending with taxable years ending on |
20 | | or before December 31, 2004,
personal property that is
|
21 | | donated for disaster relief to be used in a State or |
22 | | federally declared
disaster area in Illinois or bordering |
23 | | Illinois by a manufacturer or retailer
that is registered |
24 | | in this State to a corporation, society, association,
|
25 | | foundation, or institution that has been issued a sales |
26 | | tax exemption
identification number by the Department that |
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1 | | assists victims of the disaster
who reside within the |
2 | | declared disaster area.
|
3 | | (31) Beginning with taxable years ending on or after |
4 | | December
31, 1995 and
ending with taxable years ending on |
5 | | or before December 31, 2004, personal
property that is |
6 | | used in the performance of infrastructure repairs in this
|
7 | | State, including but not limited to municipal roads and |
8 | | streets, access roads,
bridges, sidewalks, waste disposal |
9 | | systems, water and sewer line extensions,
water |
10 | | distribution and purification facilities, storm water |
11 | | drainage and
retention facilities, and sewage treatment |
12 | | facilities, resulting from a State
or federally declared |
13 | | disaster in Illinois or bordering Illinois when such
|
14 | | repairs are initiated on facilities located in the |
15 | | declared disaster area
within 6 months after the disaster.
|
16 | | (32) Beginning July 1, 1999, game or game birds sold |
17 | | at a "game breeding
and
hunting preserve area" as that |
18 | | term is used
in the
Wildlife Code. This paragraph is |
19 | | exempt from the provisions
of
Section 2-70.
|
20 | | (33) A motor vehicle, as that term is defined in |
21 | | Section 1-146
of the
Illinois Vehicle Code, that is |
22 | | donated to a corporation, limited liability
company, |
23 | | society, association, foundation, or institution that is |
24 | | determined by
the Department to be organized and operated |
25 | | exclusively for educational
purposes. For purposes of this |
26 | | exemption, "a corporation, limited liability
company, |
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1 | | society, association, foundation, or institution organized |
2 | | and
operated
exclusively for educational purposes" means |
3 | | all tax-supported public schools,
private schools that |
4 | | offer systematic instruction in useful branches of
|
5 | | learning by methods common to public schools and that |
6 | | compare favorably in
their scope and intensity with the |
7 | | course of study presented in tax-supported
schools, and |
8 | | vocational or technical schools or institutes organized |
9 | | and
operated exclusively to provide a course of study of |
10 | | not less than 6 weeks
duration and designed to prepare |
11 | | individuals to follow a trade or to pursue a
manual, |
12 | | technical, mechanical, industrial, business, or commercial
|
13 | | occupation.
|
14 | | (34) Beginning January 1, 2000, personal property, |
15 | | including food, purchased
through fundraising events for |
16 | | the benefit of a public or private elementary or
secondary |
17 | | school, a group of those schools, or one or more school |
18 | | districts if
the events are sponsored by an entity |
19 | | recognized by the school district that
consists primarily |
20 | | of volunteers and includes parents and teachers of the
|
21 | | school children. This paragraph does not apply to |
22 | | fundraising events (i) for
the benefit of private home |
23 | | instruction or (ii) for which the fundraising
entity |
24 | | purchases the personal property sold at the events from |
25 | | another
individual or entity that sold the property for |
26 | | the purpose of resale by the
fundraising entity and that |
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1 | | profits from the sale to the fundraising entity.
This |
2 | | paragraph is exempt from the provisions of Section 2-70.
|
3 | | (35) Beginning January 1, 2000 and through December |
4 | | 31, 2001, new or used
automatic vending machines that |
5 | | prepare and serve hot food and beverages,
including |
6 | | coffee, soup, and other items, and replacement parts for |
7 | | these
machines. Beginning January 1, 2002 and through June |
8 | | 30, 2003, machines
and parts for machines used in
|
9 | | commercial, coin-operated amusement and vending business |
10 | | if a use or occupation
tax is paid on the gross receipts |
11 | | derived from the use of the commercial,
coin-operated |
12 | | amusement and vending machines. This paragraph is exempt |
13 | | from
the provisions of Section 2-70.
|
14 | | (35-5) Beginning August 23, 2001 and through June 30, |
15 | | 2016, food for human consumption that is to be consumed |
16 | | off
the premises where it is sold (other than alcoholic |
17 | | beverages, soft drinks,
and food that has been prepared |
18 | | for immediate consumption) and prescription
and |
19 | | nonprescription medicines, drugs, medical appliances, and |
20 | | insulin, urine
testing materials, syringes, and needles |
21 | | used by diabetics, for human use, when
purchased for use |
22 | | by a person receiving medical assistance under Article V |
23 | | of
the Illinois Public Aid Code who resides in a licensed |
24 | | long-term care facility,
as defined in the Nursing Home |
25 | | Care Act, or a licensed facility as defined in the ID/DD |
26 | | Community Care Act, the MC/DD Act, or the Specialized |
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1 | | Mental Health Rehabilitation Act of 2013.
|
2 | | (36) Beginning August 2, 2001, computers and |
3 | | communications equipment
utilized for any hospital purpose |
4 | | and equipment used in the diagnosis,
analysis, or |
5 | | treatment of hospital patients sold to a lessor who leases |
6 | | the
equipment, under a lease of one year or longer |
7 | | executed or in effect at the
time of the purchase, to a |
8 | | hospital that has been issued an active tax
exemption |
9 | | identification number by the Department under Section 1g |
10 | | of this Act.
This paragraph is exempt from the provisions |
11 | | of Section 2-70.
|
12 | | (37) Beginning August 2, 2001, personal property sold |
13 | | to a lessor who
leases the property, under a lease of one |
14 | | year or longer executed or in effect
at the time of the |
15 | | purchase, to a governmental body that has been issued an
|
16 | | active tax exemption identification number by the |
17 | | Department under Section 1g
of this Act. This paragraph is |
18 | | exempt from the provisions of Section 2-70.
|
19 | | (38) Beginning on January 1, 2002 and through June 30, |
20 | | 2016, tangible personal property purchased
from an |
21 | | Illinois retailer by a taxpayer engaged in centralized |
22 | | purchasing
activities in Illinois who will, upon receipt |
23 | | of the property in Illinois,
temporarily store the |
24 | | property in Illinois (i) for the purpose of subsequently
|
25 | | transporting it outside this State for use or consumption |
26 | | thereafter solely
outside this State or (ii) for the |
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1 | | purpose of being processed, fabricated, or
manufactured |
2 | | into, attached to, or incorporated into other tangible |
3 | | personal
property to be transported outside this State and |
4 | | thereafter used or consumed
solely outside this State. The |
5 | | Director of Revenue shall, pursuant to rules
adopted in |
6 | | accordance with the Illinois Administrative Procedure Act, |
7 | | issue a
permit to any taxpayer in good standing with the |
8 | | Department who is eligible for
the exemption under this |
9 | | paragraph (38). The permit issued under
this paragraph |
10 | | (38) shall authorize the holder, to the extent and
in the |
11 | | manner specified in the rules adopted under this Act, to |
12 | | purchase
tangible personal property from a retailer exempt |
13 | | from the taxes imposed by
this Act. Taxpayers shall |
14 | | maintain all necessary books and records to
substantiate |
15 | | the use and consumption of all such tangible personal |
16 | | property
outside of the State of Illinois.
|
17 | | (39) Beginning January 1, 2008, tangible personal |
18 | | property used in the construction or maintenance of a |
19 | | community water supply, as defined under Section 3.145 of |
20 | | the Environmental Protection Act, that is operated by a |
21 | | not-for-profit corporation that holds a valid water supply |
22 | | permit issued under Title IV of the Environmental |
23 | | Protection Act. This paragraph is exempt from the |
24 | | provisions of Section 2-70.
|
25 | | (40) Beginning January 1, 2010 and continuing through |
26 | | December 31, 2029 December 31, 2024 , materials, parts, |
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1 | | equipment, components, and furnishings incorporated into |
2 | | or upon an aircraft as part of the modification, |
3 | | refurbishment, completion, replacement, repair, or |
4 | | maintenance of the aircraft. This exemption includes |
5 | | consumable supplies used in the modification, |
6 | | refurbishment, completion, replacement, repair, and |
7 | | maintenance of aircraft . However, until January 1, 2024, |
8 | | this exemption , but excludes any materials, parts, |
9 | | equipment, components, and consumable supplies used in the |
10 | | modification, replacement, repair, and maintenance of |
11 | | aircraft engines or power plants, whether such engines or |
12 | | power plants are installed or uninstalled upon any such |
13 | | aircraft. "Consumable supplies" include, but are not |
14 | | limited to, adhesive, tape, sandpaper, general purpose |
15 | | lubricants, cleaning solution, latex gloves, and |
16 | | protective films. |
17 | | Beginning January 1, 2010 and continuing through |
18 | | December 31, 2023, this This exemption applies only to the |
19 | | sale of qualifying tangible personal property to persons |
20 | | who modify, refurbish, complete, replace, or maintain an |
21 | | aircraft and who (i) hold an Air Agency Certificate and |
22 | | are empowered to operate an approved repair station by the |
23 | | Federal Aviation Administration, (ii) have a Class IV |
24 | | Rating, and (iii) conduct operations in accordance with |
25 | | Part 145 of the Federal Aviation Regulations. The |
26 | | exemption does not include aircraft operated by a |
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1 | | commercial air carrier providing scheduled passenger air |
2 | | service pursuant to authority issued under Part 121 or |
3 | | Part 129 of the Federal Aviation Regulations. From January |
4 | | 1, 2024 through December 31, 2029, this exemption applies |
5 | | only to the use of qualifying tangible personal property |
6 | | by: (A) persons who modify, refurbish, complete, repair, |
7 | | replace, or maintain aircraft and who (i) hold an Air |
8 | | Agency Certificate and are empowered to operate an |
9 | | approved repair station by the Federal Aviation |
10 | | Administration, (ii) have a Class IV Rating, and (iii) |
11 | | conduct operations in accordance with Part 145 of the |
12 | | Federal Aviation Regulations; and (B) persons who engage |
13 | | in the modification, replacement, repair, and maintenance |
14 | | of aircraft engines or power plants without regard to |
15 | | whether or not those persons meet the qualifications of |
16 | | item (A). |
17 | | The changes made to this paragraph (40) by Public Act |
18 | | 98-534 are declarative of existing law. It is the intent |
19 | | of the General Assembly that the exemption under this |
20 | | paragraph (40) applies continuously from January 1, 2010 |
21 | | through December 31, 2024; however, no claim for credit or |
22 | | refund is allowed for taxes paid as a result of the |
23 | | disallowance of this exemption on or after January 1, 2015 |
24 | | and prior to February 5, 2020 ( the effective date of |
25 | | Public Act 101-629) this amendatory Act of the 101st |
26 | | General Assembly . |
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1 | | (41) Tangible personal property sold to a |
2 | | public-facilities corporation, as described in Section |
3 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
4 | | constructing or furnishing a municipal convention hall, |
5 | | but only if the legal title to the municipal convention |
6 | | hall is transferred to the municipality without any |
7 | | further consideration by or on behalf of the municipality |
8 | | at the time of the completion of the municipal convention |
9 | | hall or upon the retirement or redemption of any bonds or |
10 | | other debt instruments issued by the public-facilities |
11 | | corporation in connection with the development of the |
12 | | municipal convention hall. This exemption includes |
13 | | existing public-facilities corporations as provided in |
14 | | Section 11-65-25 of the Illinois Municipal Code. This |
15 | | paragraph is exempt from the provisions of Section 2-70. |
16 | | (42) Beginning January 1, 2017 and through December |
17 | | 31, 2026, menstrual pads, tampons, and menstrual cups. |
18 | | (43) Merchandise that is subject to the Rental |
19 | | Purchase Agreement Occupation and Use Tax. The purchaser |
20 | | must certify that the item is purchased to be rented |
21 | | subject to a rental purchase agreement, as defined in the |
22 | | Rental Purchase Agreement Act, and provide proof of |
23 | | registration under the Rental Purchase Agreement |
24 | | Occupation and Use Tax Act. This paragraph is exempt from |
25 | | the provisions of Section 2-70. |
26 | | (44) Qualified tangible personal property used in the |
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1 | | construction or operation of a data center that has been |
2 | | granted a certificate of exemption by the Department of |
3 | | Commerce and Economic Opportunity, whether that tangible |
4 | | personal property is purchased by the owner, operator, or |
5 | | tenant of the data center or by a contractor or |
6 | | subcontractor of the owner, operator, or tenant. Data |
7 | | centers that would have qualified for a certificate of |
8 | | exemption prior to January 1, 2020 had Public Act 101-31 |
9 | | this amendatory Act of the 101st General Assembly been in |
10 | | effect, may apply for and obtain an exemption for |
11 | | subsequent purchases of computer equipment or enabling |
12 | | software purchased or leased to upgrade, supplement, or |
13 | | replace computer equipment or enabling software purchased |
14 | | or leased in the original investment that would have |
15 | | qualified. |
16 | | The Department of Commerce and Economic Opportunity |
17 | | shall grant a certificate of exemption under this item |
18 | | (44) to qualified data centers as defined by Section |
19 | | 605-1025 of the Department of Commerce and Economic |
20 | | Opportunity Law of the
Civil Administrative Code of |
21 | | Illinois. |
22 | | For the purposes of this item (44): |
23 | | "Data center" means a building or a series of |
24 | | buildings rehabilitated or constructed to house |
25 | | working servers in one physical location or multiple |
26 | | sites within the State of Illinois. |
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1 | | "Qualified tangible personal property" means: |
2 | | electrical systems and equipment; climate control and |
3 | | chilling equipment and systems; mechanical systems and |
4 | | equipment; monitoring and secure systems; emergency |
5 | | generators; hardware; computers; servers; data storage |
6 | | devices; network connectivity equipment; racks; |
7 | | cabinets; telecommunications cabling infrastructure; |
8 | | raised floor systems; peripheral components or |
9 | | systems; software; mechanical, electrical, or plumbing |
10 | | systems; battery systems; cooling systems and towers; |
11 | | temperature control systems; other cabling; and other |
12 | | data center infrastructure equipment and systems |
13 | | necessary to operate qualified tangible personal |
14 | | property, including fixtures; and component parts of |
15 | | any of the foregoing, including installation, |
16 | | maintenance, repair, refurbishment, and replacement of |
17 | | qualified tangible personal property to generate, |
18 | | transform, transmit, distribute, or manage electricity |
19 | | necessary to operate qualified tangible personal |
20 | | property; and all other tangible personal property |
21 | | that is essential to the operations of a computer data |
22 | | center. The term "qualified tangible personal |
23 | | property" also includes building materials physically |
24 | | incorporated into the qualifying data center. To |
25 | | document the exemption allowed under this Section, the |
26 | | retailer must obtain from the purchaser a copy of the |
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1 | | certificate of eligibility issued by the Department of |
2 | | Commerce and Economic Opportunity. |
3 | | This item (44) is exempt from the provisions of |
4 | | Section 2-70. |
5 | | (45) Beginning January 1, 2020 and through December |
6 | | 31, 2020, sales of tangible personal property made by a |
7 | | marketplace seller over a marketplace for which tax is due |
8 | | under this Act but for which use tax has been collected and |
9 | | remitted to the Department by a marketplace facilitator |
10 | | under Section 2d of the Use Tax Act are exempt from tax |
11 | | under this Act. A marketplace seller claiming this |
12 | | exemption shall maintain books and records demonstrating |
13 | | that the use tax on such sales has been collected and |
14 | | remitted by a marketplace facilitator. Marketplace sellers |
15 | | that have properly remitted tax under this Act on such |
16 | | sales may file a claim for credit as provided in Section 6 |
17 | | of this Act. No claim is allowed, however, for such taxes |
18 | | for which a credit or refund has been issued to the |
19 | | marketplace facilitator under the Use Tax Act, or for |
20 | | which the marketplace facilitator has filed a claim for |
21 | | credit or refund under the Use Tax Act. |
22 | | (46) Beginning July 1, 2022, breast pumps, breast pump |
23 | | collection and storage supplies, and breast pump kits. |
24 | | This item (46) is exempt from the provisions of Section |
25 | | 2-70. As used in this item (46): |
26 | | "Breast pump" means an electrically controlled or |
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1 | | manually controlled pump device designed or marketed to be |
2 | | used to express milk from a human breast during lactation, |
3 | | including the pump device and any battery, AC adapter, or |
4 | | other power supply unit that is used to power the pump |
5 | | device and is packaged and sold with the pump device at the |
6 | | time of sale. |
7 | | "Breast pump collection and storage supplies" means |
8 | | items of tangible personal property designed or marketed |
9 | | to be used in conjunction with a breast pump to collect |
10 | | milk expressed from a human breast and to store collected |
11 | | milk until it is ready for consumption. |
12 | | "Breast pump collection and storage supplies" |
13 | | includes, but is not limited to: breast shields and breast |
14 | | shield connectors; breast pump tubes and tubing adapters; |
15 | | breast pump valves and membranes; backflow protectors and |
16 | | backflow protector adaptors; bottles and bottle caps |
17 | | specific to the operation of the breast pump; and breast |
18 | | milk storage bags. |
19 | | "Breast pump collection and storage supplies" does not |
20 | | include: (1) bottles and bottle caps not specific to the |
21 | | operation of the breast pump; (2) breast pump travel bags |
22 | | and other similar carrying accessories, including ice |
23 | | packs, labels, and other similar products; (3) breast pump |
24 | | cleaning supplies; (4) nursing bras, bra pads, breast |
25 | | shells, and other similar products; and (5) creams, |
26 | | ointments, and other similar products that relieve |
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1 | | breastfeeding-related symptoms or conditions of the |
2 | | breasts or nipples, unless sold as part of a breast pump |
3 | | kit that is pre-packaged by the breast pump manufacturer |
4 | | or distributor. |
5 | | "Breast pump kit" means a kit that: (1) contains no |
6 | | more than a breast pump, breast pump collection and |
7 | | storage supplies, a rechargeable battery for operating the |
8 | | breast pump, a breastmilk cooler, bottle stands, ice |
9 | | packs, and a breast pump carrying case; and (2) is |
10 | | pre-packaged as a breast pump kit by the breast pump |
11 | | manufacturer or distributor. |
12 | | (47) (46) Tangible personal property sold by or on |
13 | | behalf of the State Treasurer pursuant to the Revised |
14 | | Uniform Unclaimed Property Act. This item (47) (46) is |
15 | | exempt from the provisions of Section 2-70. |
16 | | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; |
17 | | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff. |
18 | | 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22; |
19 | | 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813, |
20 | | eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
|
21 | | ARTICLE 10. ETHANOL BLENDED FUEL |
22 | | Section 10-5. The Use Tax Act is amended by changing |
23 | | Sections 3-10, 3-40, and 3-44 and by adding Section 3-44.3 as |
24 | | follows:
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1 | | (35 ILCS 105/3-10)
|
2 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this |
3 | | Section, the tax
imposed by this Act is at the rate of 6.25% of |
4 | | either the selling price or the
fair market value, if any, of |
5 | | the tangible personal property. In all cases
where property |
6 | | functionally used or consumed is the same as the property that
|
7 | | was purchased at retail, then the tax is imposed on the selling |
8 | | price of the
property. In all cases where property |
9 | | functionally used or consumed is a
by-product or waste product |
10 | | that has been refined, manufactured, or produced
from property |
11 | | purchased at retail, then the tax is imposed on the lower of |
12 | | the
fair market value, if any, of the specific property so used |
13 | | in this State or on
the selling price of the property purchased |
14 | | at retail. For purposes of this
Section "fair market value" |
15 | | means the price at which property would change
hands between a |
16 | | willing buyer and a willing seller, neither being under any
|
17 | | compulsion to buy or sell and both having reasonable knowledge |
18 | | of the
relevant facts. The fair market value shall be |
19 | | established by Illinois sales by
the taxpayer of the same |
20 | | property as that functionally used or consumed, or if
there |
21 | | are no such sales by the taxpayer, then comparable sales or |
22 | | purchases of
property of like kind and character in Illinois.
|
23 | | Beginning on July 1, 2000 and through December 31, 2000, |
24 | | with respect to
motor fuel, as defined in Section 1.1 of the |
25 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of |
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1 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
|
2 | | Beginning on August 6, 2010 through August 15, 2010, and |
3 | | beginning again on August 5, 2022 through August 14, 2022, |
4 | | with respect to sales tax holiday items as defined in Section |
5 | | 3-6 of this Act, the
tax is imposed at the rate of 1.25%. |
6 | | With respect to gasohol, the tax imposed by this Act |
7 | | applies to (i) 70%
of the proceeds of sales made on or after |
8 | | January 1, 1990, and before
July 1, 2003, (ii) 80% of the |
9 | | proceeds of sales made
on or after July 1, 2003 and on or |
10 | | before July 1, 2017, and (iii) 100% of the proceeds of sales |
11 | | made
after July 1, 2017 and prior to January 1, 2024, (iv) 90% |
12 | | of the proceeds of sales made on or after January 1, 2024 and |
13 | | on or before December 31, 2028, and (v) 100% of the proceeds of |
14 | | sales made after December 31, 2028 thereafter .
If, at any |
15 | | time, however, the tax under this Act on sales of gasohol is
|
16 | | imposed at the
rate of 1.25%, then the tax imposed by this Act |
17 | | applies to 100% of the proceeds
of sales of gasohol made during |
18 | | that time.
|
19 | | With respect to mid-range ethanol blends, the tax imposed |
20 | | by this Act applies to (i) 80% of the proceeds of sales made on |
21 | | or after January 1, 2024 and on or before December 31, 2028 and |
22 | | (ii) 100% of the proceeds of sales made thereafter. If, at any |
23 | | time, however, the tax under this Act on sales of mid-range |
24 | | ethanol blends is imposed at the rate of 1.25%, then the tax |
25 | | imposed by this Act applies to 100% of the proceeds of sales of |
26 | | mid-range ethanol blends made during that time. |
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1 | | With respect to majority blended ethanol fuel, the tax |
2 | | imposed by this Act
does
not apply
to the proceeds of sales |
3 | | made on or after July 1, 2003 and on or before
December 31, |
4 | | 2028 December 31, 2023 but applies to 100% of the proceeds of |
5 | | sales made thereafter.
|
6 | | With respect to biodiesel blends with no less than 1% and |
7 | | no more than 10%
biodiesel, the tax imposed by this Act applies |
8 | | to (i) 80% of the
proceeds of sales made on or after July 1, |
9 | | 2003 and on or before December 31, 2018
and (ii) 100% of the |
10 | | proceeds of sales made
after December 31, 2018 and before |
11 | | January 1, 2024. On and after January 1, 2024 and on or before |
12 | | December 31, 2030, the taxation of biodiesel, renewable |
13 | | diesel, and biodiesel blends shall be as provided in Section |
14 | | 3-5.1.
If, at any time, however, the tax under this Act on |
15 | | sales of biodiesel blends
with no less than 1% and no more than |
16 | | 10% biodiesel
is imposed at the rate of
1.25%, then the
tax |
17 | | imposed by this Act applies to 100% of the proceeds of sales of |
18 | | biodiesel
blends with no less than 1% and no more than 10% |
19 | | biodiesel
made
during that time.
|
20 | | With respect to biodiesel and biodiesel blends with more |
21 | | than 10%
but no more than 99% biodiesel, the tax imposed by |
22 | | this Act does not apply to
the
proceeds of sales made on or |
23 | | after July 1, 2003 and on or before
December 31, 2023. On and |
24 | | after January 1, 2024 and on or before December 31, 2030, the |
25 | | taxation of biodiesel, renewable diesel, and biodiesel blends |
26 | | shall be as provided in Section 3-5.1.
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1 | | Until July 1, 2022 and beginning again on July 1, 2023, |
2 | | with respect to food for human consumption that is to be |
3 | | consumed off the
premises where it is sold (other than |
4 | | alcoholic beverages, food consisting of or infused with adult |
5 | | use cannabis, soft drinks, and
food that has been prepared for |
6 | | immediate consumption), the tax is imposed at the rate of 1%. |
7 | | Beginning on July 1, 2022 and until July 1, 2023, with respect |
8 | | to food for human consumption that is to be consumed off the |
9 | | premises where it is sold (other than alcoholic beverages, |
10 | | food consisting of or infused with adult use cannabis, soft |
11 | | drinks, and food that has been prepared for immediate |
12 | | consumption), the tax is imposed at the rate of 0%. |
13 | | With respect to prescription and
nonprescription |
14 | | medicines, drugs, medical appliances, products classified as |
15 | | Class III medical devices by the United States Food and Drug |
16 | | Administration that are used for cancer treatment pursuant to |
17 | | a prescription, as well as any accessories and components |
18 | | related to those devices, modifications to a motor
vehicle for |
19 | | the purpose of rendering it usable by a person with a |
20 | | disability, and
insulin, blood sugar testing materials, |
21 | | syringes, and needles used by human diabetics, the tax is |
22 | | imposed at the rate of 1%. For the purposes of this
Section, |
23 | | until September 1, 2009: the term "soft drinks" means any |
24 | | complete, finished, ready-to-use,
non-alcoholic drink, whether |
25 | | carbonated or not, including , but not limited to ,
soda water, |
26 | | cola, fruit juice, vegetable juice, carbonated water, and all |
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1 | | other
preparations commonly known as soft drinks of whatever |
2 | | kind or description that
are contained in any closed or sealed |
3 | | bottle, can, carton, or container,
regardless of size; but |
4 | | "soft drinks" does not include coffee, tea, non-carbonated
|
5 | | water, infant formula, milk or milk products as defined in the |
6 | | Grade A
Pasteurized Milk and Milk Products Act, or drinks |
7 | | containing 50% or more
natural fruit or vegetable juice.
|
8 | | Notwithstanding any other provisions of this
Act, |
9 | | beginning September 1, 2009, "soft drinks" means non-alcoholic |
10 | | beverages that contain natural or artificial sweeteners. "Soft |
11 | | drinks" does do not include beverages that contain milk or |
12 | | milk products, soy, rice or similar milk substitutes, or |
13 | | greater than 50% of vegetable or fruit juice by volume. |
14 | | Until August 1, 2009, and notwithstanding any other |
15 | | provisions of this
Act, "food for human consumption that is to |
16 | | be consumed off the premises where
it is sold" includes all |
17 | | food sold through a vending machine, except soft
drinks and |
18 | | food products that are dispensed hot from a vending machine,
|
19 | | regardless of the location of the vending machine. Beginning |
20 | | August 1, 2009, and notwithstanding any other provisions of |
21 | | this Act, "food for human consumption that is to be consumed |
22 | | off the premises where it is sold" includes all food sold |
23 | | through a vending machine, except soft drinks, candy, and food |
24 | | products that are dispensed hot from a vending machine, |
25 | | regardless of the location of the vending machine.
|
26 | | Notwithstanding any other provisions of this
Act, |
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1 | | beginning September 1, 2009, "food for human consumption that |
2 | | is to be consumed off the premises where
it is sold" does not |
3 | | include candy. For purposes of this Section, "candy" means a |
4 | | preparation of sugar, honey, or other natural or artificial |
5 | | sweeteners in combination with chocolate, fruits, nuts or |
6 | | other ingredients or flavorings in the form of bars, drops, or |
7 | | pieces. "Candy" does not include any preparation that contains |
8 | | flour or requires refrigeration. |
9 | | Notwithstanding any other provisions of this
Act, |
10 | | beginning September 1, 2009, "nonprescription medicines and |
11 | | drugs" does not include grooming and hygiene products. For |
12 | | purposes of this Section, "grooming and hygiene products" |
13 | | includes, but is not limited to, soaps and cleaning solutions, |
14 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan |
15 | | lotions and screens, unless those products are available by |
16 | | prescription only, regardless of whether the products meet the |
17 | | definition of "over-the-counter-drugs". For the purposes of |
18 | | this paragraph, "over-the-counter-drug" means a drug for human |
19 | | use that contains a label that identifies the product as a drug |
20 | | as required by 21 CFR C.F.R. § 201.66. The |
21 | | "over-the-counter-drug" label includes: |
22 | | (A) a A "Drug Facts" panel; or |
23 | | (B) a A statement of the "active ingredient(s)" with a |
24 | | list of those ingredients contained in the compound, |
25 | | substance or preparation. |
26 | | Beginning on January 1, 2014 ( the effective date of Public |
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1 | | Act 98-122) this amendatory Act of the 98th General Assembly , |
2 | | "prescription and nonprescription medicines and drugs" |
3 | | includes medical cannabis purchased from a registered |
4 | | dispensing organization under the Compassionate Use of Medical |
5 | | Cannabis Program Act. |
6 | | As used in this Section, "adult use cannabis" means |
7 | | cannabis subject to tax under the Cannabis Cultivation |
8 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law |
9 | | and does not include cannabis subject to tax under the |
10 | | Compassionate Use of Medical Cannabis Program Act. |
11 | | If the property that is purchased at retail from a |
12 | | retailer is acquired
outside Illinois and used outside |
13 | | Illinois before being brought to Illinois
for use here and is |
14 | | taxable under this Act, the "selling price" on which
the tax is |
15 | | computed shall be reduced by an amount that represents a
|
16 | | reasonable allowance for depreciation for the period of prior |
17 | | out-of-state use.
|
18 | | (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19; |
19 | | 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff. |
20 | | 4-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22; |
21 | | 102-700, Article 65, Section 65-5, eff. 4-19-22; revised |
22 | | 5-27-22.)
|
23 | | (35 ILCS 105/3-40) (from Ch. 120, par. 439.3-40)
|
24 | | Sec. 3-40. Gasohol. As used in this Act, "gasohol" means |
25 | | motor
fuel that is
a blend of
denatured ethanol and gasoline |
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1 | | that contains no more than 1.25% water by weight.
Prior to |
2 | | January 1, 2024, the The blend must contain 90% gasoline and |
3 | | 10% denatured ethanol. On and after January 1, 2024, the blend |
4 | | must contain 85% gasoline and 15% denatured ethanol. A maximum |
5 | | of one percent error factor in the amount of denatured ethanol |
6 | | used in the blend is allowable to compensate for blending |
7 | | equipment variations. Any person who knowingly
sells or |
8 | | represents as gasohol any fuel that does not qualify as |
9 | | gasohol
under this Act is guilty of a business offense and |
10 | | shall be fined not more
than $100 for each day that the sale or |
11 | | representation takes place after
notification from the |
12 | | Department of Agriculture that the fuel in question
does not |
13 | | qualify as gasohol.
|
14 | | (Source: P.A. 93-724, eff. 7-13-04.)
|
15 | | (35 ILCS 105/3-44)
|
16 | | Sec. 3-44. Majority blended ethanol fuel. Prior to January |
17 | | 1, 2024, "majority "Majority blended ethanol fuel"
means motor |
18 | | fuel that
contains not less than 70% and no more than 90% |
19 | | denatured ethanol and no less
than 10% and no more than 30% |
20 | | gasoline. On and after January 1, 2024, "majority blended |
21 | | ethanol fuel"
means motor fuel that
is capable of being used in |
22 | | the operation of flexible fuel vehicles and contains at least |
23 | | 51% and not more than 83% ethanol, by volume, as specified in |
24 | | ASTM Standard D5798-11, and no less than 17% and no more than |
25 | | 49% gasoline.
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1 | | (Source: P.A. 93-17, eff. 6-11-03.)
|
2 | | (35 ILCS 105/3-44.3 new) |
3 | | Sec. 3-44.3. Mid-range ethanol blend. "Mid-range ethanol |
4 | | blend" means a blend of gasoline and denatured ethanol that |
5 | | contains at least 20% but less than 51% denatured ethanol. |
6 | | Section 10-10. The Service Use Tax Act is amended by |
7 | | changing Section 3-10 as follows:
|
8 | | (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
|
9 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this |
10 | | Section,
the tax imposed by this Act is at the rate of 6.25% of |
11 | | the selling
price of tangible personal property transferred as |
12 | | an incident to the sale
of service, but, for the purpose of |
13 | | computing this tax, in no event shall
the selling price be less |
14 | | than the cost price of the property to the
serviceman.
|
15 | | Beginning on July 1, 2000 and through December 31, 2000, |
16 | | with respect to
motor fuel, as defined in Section 1.1 of the |
17 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of |
18 | | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
|
19 | | With respect to gasohol, as defined in the Use Tax Act, the |
20 | | tax imposed
by this Act applies to (i) 70% of the selling price |
21 | | of property transferred
as an incident to the sale of service |
22 | | on or after January 1, 1990,
and before July 1, 2003, (ii) 80% |
23 | | of the selling price of
property transferred as an incident to |
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1 | | the sale of service on or after July
1, 2003 and on or before |
2 | | July 1, 2017, and (iii)
100% of the selling price of
property |
3 | | transferred as an incident to the sale of service after July 1, |
4 | | 2017 and before January 1, 2024, (iv) 90% of the selling price |
5 | | of
property transferred as an incident to the sale of service |
6 | | on or after January 1, 2024 and on or before December 31, 2028, |
7 | | and (v) 100% of the selling price of
property transferred as an |
8 | | incident to the sale of service after December 31, 2028 |
9 | | thereafter .
If, at any time, however, the tax under this Act on |
10 | | sales of gasohol, as
defined in
the Use Tax Act, is imposed at |
11 | | the rate of 1.25%, then the
tax imposed by this Act applies to |
12 | | 100% of the proceeds of sales of gasohol
made during that time.
|
13 | | With respect to mid-range ethanol blends, as defined in |
14 | | Section 3-44.3 of the Use Tax Act, the tax imposed by this Act |
15 | | applies to (i) 80%
of the selling price of
property |
16 | | transferred as an incident to the sale of service on or after |
17 | | January 1, 2024 and on or before December 31, 2028 and (ii) |
18 | | 100% of the selling price of
property transferred as an |
19 | | incident to the sale of service
after December 31, 2028. If, at |
20 | | any time, however, the tax under this Act on sales of mid-range |
21 | | ethanol blends is
imposed at the
rate of 1.25%, then the tax |
22 | | imposed by this Act applies to 100% of the selling price of |
23 | | mid-range ethanol blends transferred as an incident to the |
24 | | sale of service during that time. |
25 | | With respect to majority blended ethanol fuel, as defined |
26 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply |
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1 | | to the selling price of property transferred
as an incident to |
2 | | the sale of service on or after July 1, 2003 and on or before
|
3 | | December 31, 2028 December 31, 2023 but applies to 100% of the |
4 | | selling price thereafter.
|
5 | | With respect to biodiesel blends, as defined in the Use |
6 | | Tax Act, with no less
than 1% and no
more than 10% biodiesel, |
7 | | the tax imposed by this Act
applies to (i) 80% of the selling |
8 | | price of property transferred as an incident
to the sale of |
9 | | service on or after July 1, 2003 and on or before December 31, |
10 | | 2018
and (ii) 100% of the proceeds of the selling price
after |
11 | | December 31, 2018 and before January 1, 2024. On and after |
12 | | January 1, 2024 and on or before December 31, 2030, the |
13 | | taxation of biodiesel, renewable diesel, and biodiesel blends |
14 | | shall be as provided in Section 3-5.1 of the Use Tax Act.
If, |
15 | | at any time, however, the tax under this Act on sales of |
16 | | biodiesel blends,
as
defined in the Use Tax Act, with no less |
17 | | than 1% and no more than 10% biodiesel
is imposed at the rate |
18 | | of 1.25%, then the
tax imposed by this Act applies to 100% of |
19 | | the proceeds of sales of biodiesel
blends with no less than 1% |
20 | | and no more than 10% biodiesel
made
during that time.
|
21 | | With respect to biodiesel, as defined in the Use Tax Act, |
22 | | and biodiesel
blends, as defined in the Use Tax Act, with
more |
23 | | than 10% but no more than 99% biodiesel, the tax imposed by |
24 | | this Act
does not apply to the proceeds of the selling price of |
25 | | property transferred
as an incident to the sale of service on |
26 | | or after July 1, 2003 and on or before
December 31, 2023. On |
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1 | | and after January 1, 2024 and on or before December 31, 2030, |
2 | | the taxation of biodiesel, renewable diesel, and biodiesel |
3 | | blends shall be as provided in Section 3-5.1 of the Use Tax |
4 | | Act.
|
5 | | At the election of any registered serviceman made for each |
6 | | fiscal year,
sales of service in which the aggregate annual |
7 | | cost price of tangible
personal property transferred as an |
8 | | incident to the sales of service is
less than 35%, or 75% in |
9 | | the case of servicemen transferring prescription
drugs or |
10 | | servicemen engaged in graphic arts production, of the |
11 | | aggregate
annual total gross receipts from all sales of |
12 | | service, the tax imposed by
this Act shall be based on the |
13 | | serviceman's cost price of the tangible
personal property |
14 | | transferred as an incident to the sale of those services.
|
15 | | Until July 1, 2022 and beginning again on July 1, 2023, the |
16 | | tax shall be imposed at the rate of 1% on food prepared for
|
17 | | immediate consumption and transferred incident to a sale of |
18 | | service subject
to this Act or the Service Occupation Tax Act |
19 | | by an entity licensed under
the Hospital Licensing Act, the |
20 | | Nursing Home Care Act, the Assisted Living and Shared Housing |
21 | | Act, the ID/DD Community Care Act, the MC/DD Act, the |
22 | | Specialized Mental Health Rehabilitation Act of 2013, or the
|
23 | | Child Care
Act of 1969, or an entity that holds a permit issued |
24 | | pursuant to the Life Care Facilities Act. Until July 1, 2022 |
25 | | and beginning again on July 1, 2023, the tax shall
also be |
26 | | imposed at the rate of 1% on food for human consumption that is |
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1 | | to be
consumed off the premises where it is sold (other than |
2 | | alcoholic beverages, food consisting of or infused with adult |
3 | | use cannabis,
soft drinks, and food that has been prepared for |
4 | | immediate consumption and is
not otherwise included in this |
5 | | paragraph). |
6 | | Beginning on July 1, 2022 and until July 1, 2023, the tax |
7 | | shall be imposed at the rate of 0% on food prepared for |
8 | | immediate consumption and transferred incident to a sale of |
9 | | service subject to this Act or the Service Occupation Tax Act |
10 | | by an entity licensed under the Hospital Licensing Act, the |
11 | | Nursing Home Care Act, the Assisted Living and Shared Housing |
12 | | Act, the ID/DD Community Care Act, the MC/DD Act, the |
13 | | Specialized Mental Health Rehabilitation Act of 2013, or the |
14 | | Child Care Act of 1969, or an entity that holds a permit issued |
15 | | pursuant to the Life Care Facilities Act. Beginning on July 1, |
16 | | 2022 and until July 1, 2023, the tax shall also be imposed at |
17 | | the rate of 0% on food for human consumption that is to be |
18 | | consumed off the premises where it is sold (other than |
19 | | alcoholic beverages, food consisting of or infused with adult |
20 | | use cannabis, soft drinks, and food that has been prepared for |
21 | | immediate consumption and is not otherwise included in this |
22 | | paragraph). |
23 | | The tax shall also be imposed at the rate of 1% on |
24 | | prescription and nonprescription
medicines, drugs, medical |
25 | | appliances, products classified as Class III medical devices |
26 | | by the United States Food and Drug Administration that are |
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|
1 | | used for cancer treatment pursuant to a prescription, as well |
2 | | as any accessories and components related to those devices, |
3 | | modifications to a motor vehicle for the
purpose of rendering |
4 | | it usable by a person with a disability, and insulin, blood |
5 | | sugar testing
materials,
syringes, and needles used by human |
6 | | diabetics. For the purposes of this Section, until September |
7 | | 1, 2009: the term "soft drinks" means any
complete, finished, |
8 | | ready-to-use, non-alcoholic drink, whether carbonated or
not, |
9 | | including , but not limited to , soda water, cola, fruit juice, |
10 | | vegetable
juice, carbonated water, and all other preparations |
11 | | commonly known as soft
drinks of whatever kind or description |
12 | | that are contained in any closed or
sealed bottle, can, |
13 | | carton, or container, regardless of size; but "soft drinks"
|
14 | | does not include coffee, tea, non-carbonated water, infant |
15 | | formula, milk or
milk products as defined in the Grade A |
16 | | Pasteurized Milk and Milk Products Act,
or drinks containing |
17 | | 50% or more natural fruit or vegetable juice.
|
18 | | Notwithstanding any other provisions of this
Act, |
19 | | beginning September 1, 2009, "soft drinks" means non-alcoholic |
20 | | beverages that contain natural or artificial sweeteners. "Soft |
21 | | drinks" does do not include beverages that contain milk or |
22 | | milk products, soy, rice or similar milk substitutes, or |
23 | | greater than 50% of vegetable or fruit juice by volume. |
24 | | Until August 1, 2009, and notwithstanding any other |
25 | | provisions of this Act, "food for human
consumption that is to |
26 | | be consumed off the premises where it is sold" includes
all |
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1 | | food sold through a vending machine, except soft drinks and |
2 | | food products
that are dispensed hot from a vending machine, |
3 | | regardless of the location of
the vending machine. Beginning |
4 | | August 1, 2009, and notwithstanding any other provisions of |
5 | | this Act, "food for human consumption that is to be consumed |
6 | | off the premises where it is sold" includes all food sold |
7 | | through a vending machine, except soft drinks, candy, and food |
8 | | products that are dispensed hot from a vending machine, |
9 | | regardless of the location of the vending machine.
|
10 | | Notwithstanding any other provisions of this
Act, |
11 | | beginning September 1, 2009, "food for human consumption that |
12 | | is to be consumed off the premises where
it is sold" does not |
13 | | include candy. For purposes of this Section, "candy" means a |
14 | | preparation of sugar, honey, or other natural or artificial |
15 | | sweeteners in combination with chocolate, fruits, nuts or |
16 | | other ingredients or flavorings in the form of bars, drops, or |
17 | | pieces. "Candy" does not include any preparation that contains |
18 | | flour or requires refrigeration. |
19 | | Notwithstanding any other provisions of this
Act, |
20 | | beginning September 1, 2009, "nonprescription medicines and |
21 | | drugs" does not include grooming and hygiene products. For |
22 | | purposes of this Section, "grooming and hygiene products" |
23 | | includes, but is not limited to, soaps and cleaning solutions, |
24 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan |
25 | | lotions and screens, unless those products are available by |
26 | | prescription only, regardless of whether the products meet the |
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1 | | definition of "over-the-counter-drugs". For the purposes of |
2 | | this paragraph, "over-the-counter-drug" means a drug for human |
3 | | use that contains a label that identifies the product as a drug |
4 | | as required by 21 CFR C.F.R. § 201.66. The |
5 | | "over-the-counter-drug" label includes: |
6 | | (A) a A "Drug Facts" panel; or |
7 | | (B) a 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 January 1, 2014 (the effective date of Public |
11 | | Act 98-122), "prescription and nonprescription medicines and |
12 | | drugs" includes medical cannabis purchased from a registered |
13 | | dispensing organization under the Compassionate Use of Medical |
14 | | Cannabis Program Act. |
15 | | As used in this Section, "adult use cannabis" means |
16 | | cannabis subject to tax under the Cannabis Cultivation |
17 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law |
18 | | and does not include cannabis subject to tax under the |
19 | | Compassionate Use of Medical Cannabis Program Act. |
20 | | If the property that is acquired from a serviceman is |
21 | | acquired outside
Illinois and used outside Illinois before |
22 | | being brought to Illinois for use
here and is taxable under |
23 | | this Act, the "selling price" on which the tax
is computed |
24 | | shall be reduced by an amount that represents a reasonable
|
25 | | allowance for depreciation for the period of prior |
26 | | out-of-state use.
|
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1 | | (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19; |
2 | | 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article |
3 | | 20, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section |
4 | | 60-20, eff. 4-19-22; revised 6-1-22.) |
5 | | Section 10-15. The Service Occupation Tax Act is amended |
6 | | by changing Section 3-10 as follows:
|
7 | | (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
|
8 | | Sec. 3-10. Rate of tax. Unless otherwise provided in this |
9 | | Section,
the tax imposed by this Act is at the rate of 6.25% of |
10 | | the "selling price",
as defined in Section 2 of the Service Use |
11 | | Tax Act, of the tangible
personal property. For the purpose of |
12 | | computing this tax, in no event
shall the "selling price" be |
13 | | less than the cost price to the serviceman of
the tangible |
14 | | personal property transferred. The selling price of each item
|
15 | | of tangible personal property transferred as an incident of a |
16 | | sale of
service may be shown as a distinct and separate item on |
17 | | the serviceman's
billing to the service customer. If the |
18 | | selling price is not so shown, the
selling price of the |
19 | | tangible personal property is deemed to be 50% of the
|
20 | | serviceman's entire billing to the service customer. When, |
21 | | however, a
serviceman contracts to design, develop, and |
22 | | produce special order machinery or
equipment, the tax imposed |
23 | | by this Act shall be based on the serviceman's
cost price of |
24 | | the tangible personal property transferred incident to the
|
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1 | | completion of the contract.
|
2 | | Beginning on July 1, 2000 and through December 31, 2000, |
3 | | with respect to
motor fuel, as defined in Section 1.1 of the |
4 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of |
5 | | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
|
6 | | With respect to gasohol, as defined in the Use Tax Act, the |
7 | | tax imposed
by this Act shall apply to (i) 70% of the cost |
8 | | price of property
transferred as
an incident to the sale of |
9 | | service on or after January 1, 1990, and before
July 1, 2003, |
10 | | (ii) 80% of the selling price of property transferred as an
|
11 | | incident to the sale of service on or after July
1, 2003 and on |
12 | | or before July 1, 2017, and (iii) 100%
of
the selling price of
|
13 | | property transferred as an incident to the sale of service |
14 | | after July 1, 2017 and prior to January 1, 2024, (iv) 90% of |
15 | | the selling price of
property transferred as an incident to |
16 | | the sale of service on or after January 1, 2024 and on or |
17 | | before December 31, 2028, and (v) 100% of the selling price of
|
18 | | property transferred as an incident to the sale of service |
19 | | after December 31, 2028 cost price
thereafter .
If, at any |
20 | | time, however, the tax under this Act on sales of gasohol, as
|
21 | | defined in
the Use Tax Act, is imposed at the rate of 1.25%, |
22 | | then the
tax imposed by this Act applies to 100% of the |
23 | | proceeds of sales of gasohol
made during that time.
|
24 | | With respect to mid-range ethanol blends, as defined in |
25 | | Section 3-44.3 of the Use Tax Act, the tax imposed by this Act |
26 | | applies to (i) 80%
of the selling price of property |
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| | 10300SB1963ham002 | - 107 - | LRB103 25648 HLH 62334 a |
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1 | | transferred
as an incident to the sale of service on or after |
2 | | January 1, 2024 and on or before December 31, 2028 and (ii) |
3 | | 100% of the selling price of property transferred as an
|
4 | | incident to the sale of service
after December 31, 2028. If, at |
5 | | any time, however, the tax under this Act on sales of mid-range |
6 | | ethanol blends is
imposed at the
rate of 1.25%, then the tax |
7 | | imposed by this Act applies to 100% of the selling price of |
8 | | mid-range ethanol blends transferred as an
incident to the |
9 | | sale of service during that time. |
10 | | With respect to majority blended ethanol fuel, as defined |
11 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply |
12 | | to the selling price of property transferred
as an incident to |
13 | | the sale of service on or after July 1, 2003 and on or before
|
14 | | December 31, 2028 December 31, 2023 but applies to 100% of the |
15 | | selling price thereafter.
|
16 | | With respect to biodiesel blends, as defined in the Use |
17 | | Tax Act, with no less
than 1% and no
more than 10% biodiesel, |
18 | | the tax imposed by this Act
applies to (i) 80% of the selling |
19 | | price of property transferred as an incident
to the sale of |
20 | | service on or after July 1, 2003 and on or before December 31, |
21 | | 2018
and (ii) 100% of the proceeds of the selling price
after |
22 | | December 31, 2018 and before January 1, 2024. On and after |
23 | | January 1, 2024 and on or before December 31, 2030, the |
24 | | taxation of biodiesel, renewable diesel, and biodiesel blends |
25 | | shall be as provided in Section 3-5.1 of the Use Tax Act.
If, |
26 | | at any time, however, the tax under this Act on sales of |
|
| | 10300SB1963ham002 | - 108 - | LRB103 25648 HLH 62334 a |
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|
1 | | biodiesel blends,
as
defined in the Use Tax Act, with no less |
2 | | than 1% and no more than 10% biodiesel
is imposed at the rate |
3 | | of 1.25%, then the
tax imposed by this Act applies to 100% of |
4 | | the proceeds of sales of biodiesel
blends with no less than 1% |
5 | | and no more than 10% biodiesel
made
during that time.
|
6 | | With respect to biodiesel, as defined in the Use Tax Act, |
7 | | and biodiesel
blends, as defined in the Use Tax Act, with
more |
8 | | than 10% but no more than 99% biodiesel material, the tax |
9 | | imposed by this
Act
does not apply to the proceeds of the |
10 | | selling price of property transferred
as an incident to the |
11 | | sale of service on or after July 1, 2003 and on or before
|
12 | | December 31, 2023. On and after January 1, 2024 and on or |
13 | | before December 31, 2030, the taxation of biodiesel, renewable |
14 | | diesel, and biodiesel blends shall be as provided in Section |
15 | | 3-5.1 of the Use Tax Act.
|
16 | | At the election of any registered serviceman made for each |
17 | | fiscal year,
sales of service in which the aggregate annual |
18 | | cost price of tangible
personal property transferred as an |
19 | | incident to the sales of service is
less than 35%, or 75% in |
20 | | the case of servicemen transferring prescription
drugs or |
21 | | servicemen engaged in graphic arts production, of the |
22 | | aggregate
annual total gross receipts from all sales of |
23 | | service, the tax imposed by
this Act shall be based on the |
24 | | serviceman's cost price of the tangible
personal property |
25 | | transferred incident to the sale of those services.
|
26 | | Until July 1, 2022 and beginning again on July 1, 2023, the |
|
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|
1 | | tax shall be imposed at the rate of 1% on food prepared for
|
2 | | immediate consumption and transferred incident to a sale of |
3 | | service subject
to this Act or the Service Use Tax Act by an |
4 | | entity licensed under
the Hospital Licensing Act, the Nursing |
5 | | Home Care Act, the Assisted Living and Shared Housing Act, the |
6 | | ID/DD Community Care Act, the MC/DD Act, the Specialized |
7 | | Mental Health Rehabilitation Act of 2013, or the
Child Care |
8 | | Act of 1969, or an entity that holds a permit issued pursuant |
9 | | to the Life Care Facilities Act. Until July 1, 2022 and |
10 | | beginning again on July 1, 2023, the tax shall
also be imposed |
11 | | at the rate of 1% on food for human consumption that is
to be |
12 | | consumed off the
premises where it is sold (other than |
13 | | alcoholic beverages, food consisting of or infused with adult |
14 | | use cannabis, soft drinks, and
food that has been prepared for |
15 | | immediate consumption and is not
otherwise included in this |
16 | | paragraph). |
17 | | Beginning on July 1, 2022 and until July 1, 2023, the tax |
18 | | shall be imposed at the rate of 0% on food prepared for |
19 | | immediate consumption and transferred incident to a sale of |
20 | | service subject to this Act or the Service Use Tax Act by an |
21 | | entity licensed under the Hospital Licensing Act, the Nursing |
22 | | Home Care Act, the Assisted Living and Shared Housing Act, the |
23 | | ID/DD Community Care Act, the MC/DD Act, the Specialized |
24 | | Mental Health Rehabilitation Act of 2013, or the Child Care |
25 | | Act of 1969, or an entity that holds a permit issued pursuant |
26 | | to the Life Care Facilities Act. Beginning July 1, 2022 and |
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| | 10300SB1963ham002 | - 110 - | LRB103 25648 HLH 62334 a |
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|
1 | | until July 1, 2023, the tax shall also be imposed at the rate |
2 | | of 0% on food for human consumption that is to be consumed off |
3 | | the premises where it is sold (other than alcoholic beverages, |
4 | | food consisting of or infused with adult use cannabis, soft |
5 | | drinks, and food that has been prepared for immediate |
6 | | consumption and is not otherwise included in this paragraph). |
7 | | The tax shall also be imposed at the rate of 1% on |
8 | | prescription and
nonprescription medicines, drugs, medical |
9 | | appliances, products classified as Class III medical devices |
10 | | by the United States Food and Drug Administration that are |
11 | | used for cancer treatment pursuant to a prescription, as well |
12 | | as any accessories and components related to those devices, |
13 | | modifications to a motor
vehicle for the purpose of rendering |
14 | | it usable by a person with a disability, and
insulin, blood |
15 | | sugar testing materials, syringes, and needles used by human |
16 | | diabetics. For the purposes of this Section, until September |
17 | | 1, 2009: the term "soft drinks" means any
complete, finished, |
18 | | ready-to-use, non-alcoholic drink, whether carbonated or
not, |
19 | | including , but not limited to , soda water, cola, fruit juice, |
20 | | vegetable
juice, carbonated water, and all other preparations |
21 | | commonly known as soft
drinks of whatever kind or description |
22 | | that are contained in any closed or
sealed can, carton, or |
23 | | container, regardless of size; but "soft drinks" does not
|
24 | | include coffee, tea, non-carbonated water, infant formula, |
25 | | milk or milk
products as defined in the Grade A Pasteurized |
26 | | Milk and Milk Products Act, or
drinks containing 50% or more |
|
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|
1 | | natural fruit or vegetable juice.
|
2 | | Notwithstanding any other provisions of this
Act, |
3 | | beginning September 1, 2009, "soft drinks" means non-alcoholic |
4 | | beverages that contain natural or artificial sweeteners. "Soft |
5 | | drinks" does do not include beverages that contain milk or |
6 | | milk products, soy, rice or similar milk substitutes, or |
7 | | greater than 50% of vegetable or fruit juice by volume. |
8 | | Until August 1, 2009, and notwithstanding any other |
9 | | provisions of this Act, "food for human consumption
that is to |
10 | | be consumed off the premises where it is sold" includes all |
11 | | food
sold through a vending machine, except soft drinks and |
12 | | food products that are
dispensed hot from a vending machine, |
13 | | regardless of the location of the vending
machine. Beginning |
14 | | August 1, 2009, and notwithstanding any other provisions of |
15 | | this Act, "food for human consumption that is to be consumed |
16 | | off the premises where it is sold" includes all food sold |
17 | | through a vending machine, except soft drinks, candy, and food |
18 | | products that are dispensed hot from a vending machine, |
19 | | regardless of the location of the vending machine.
|
20 | | Notwithstanding any other provisions of this
Act, |
21 | | beginning September 1, 2009, "food for human consumption that |
22 | | is to be consumed off the premises where
it is sold" does not |
23 | | include candy. For purposes of this Section, "candy" means a |
24 | | preparation of sugar, honey, or other natural or artificial |
25 | | sweeteners in combination with chocolate, fruits, nuts or |
26 | | other ingredients or flavorings in the form of bars, drops, or |
|
| | 10300SB1963ham002 | - 112 - | LRB103 25648 HLH 62334 a |
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1 | | pieces. "Candy" does not include any preparation that contains |
2 | | flour or requires refrigeration. |
3 | | Notwithstanding any other provisions of this
Act, |
4 | | beginning September 1, 2009, "nonprescription medicines and |
5 | | drugs" does not include grooming and hygiene products. For |
6 | | purposes of this Section, "grooming and hygiene products" |
7 | | includes, but is not limited to, soaps and cleaning solutions, |
8 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan |
9 | | lotions and screens, unless those products are available by |
10 | | prescription only, regardless of whether the products meet the |
11 | | definition of "over-the-counter-drugs". For the purposes of |
12 | | this paragraph, "over-the-counter-drug" means a drug for human |
13 | | use that contains a label that identifies the product as a drug |
14 | | as required by 21 CFR C.F.R. § 201.66. The |
15 | | "over-the-counter-drug" label includes: |
16 | | (A) a A "Drug Facts" panel; or |
17 | | (B) a 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 |
21 | | Act 98-122), "prescription and nonprescription medicines and |
22 | | drugs" includes medical cannabis purchased from a registered |
23 | | dispensing organization under the Compassionate Use of Medical |
24 | | Cannabis Program Act. |
25 | | As used in this Section, "adult use cannabis" means |
26 | | cannabis subject to tax under the Cannabis Cultivation |
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1 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law |
2 | | and does not include cannabis subject to tax under the |
3 | | Compassionate Use of Medical Cannabis Program Act. |
4 | | (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19; |
5 | | 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article |
6 | | 20, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section |
7 | | 60-25, eff. 4-19-22; revised 6-1-22.) |
8 | | Section 10-20. The Retailers' Occupation Tax Act is |
9 | | amended by changing Sections 2-10 and 2d as follows:
|
10 | | (35 ILCS 120/2-10)
|
11 | | Sec. 2-10. Rate of tax. Unless otherwise provided in this |
12 | | Section,
the tax imposed by this Act is at the rate of 6.25% of |
13 | | gross receipts
from sales of tangible personal property made |
14 | | in the course of business.
|
15 | | Beginning on July 1, 2000 and through December 31, 2000, |
16 | | with respect to
motor fuel, as defined in Section 1.1 of the |
17 | | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of |
18 | | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
|
19 | | Beginning on August 6, 2010 through August 15, 2010, and |
20 | | beginning again on August 5, 2022 through August 14, 2022, |
21 | | with respect to sales tax holiday items as defined in Section |
22 | | 2-8 of this Act, the
tax is imposed at the rate of 1.25%. |
23 | | Within 14 days after July 1, 2000 ( the effective date of |
24 | | Public Act 91-872) this amendatory Act of the 91st
General |
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1 | | Assembly , each retailer of motor fuel and gasohol shall cause |
2 | | the
following notice to be posted in a prominently visible |
3 | | place on each retail
dispensing device that is used to |
4 | | dispense motor
fuel or gasohol in the State of Illinois: "As of |
5 | | July 1, 2000, the State of
Illinois has eliminated the State's |
6 | | share of sales tax on motor fuel and
gasohol through December |
7 | | 31, 2000. The price on this pump should reflect the
|
8 | | elimination of the tax." The notice shall be printed in bold |
9 | | print on a sign
that is no smaller than 4 inches by 8 inches. |
10 | | The sign shall be clearly
visible to customers. Any retailer |
11 | | who fails to post or maintain a required
sign through December |
12 | | 31, 2000 is guilty of a petty offense for which the fine
shall |
13 | | be $500 per day per each retail premises where a violation |
14 | | occurs.
|
15 | | With respect to gasohol, as defined in the Use Tax Act, the |
16 | | tax imposed
by this Act applies to (i) 70% of the proceeds of |
17 | | sales made on or after
January 1, 1990, and before July 1, |
18 | | 2003, (ii) 80% of the proceeds of
sales made on or after July |
19 | | 1, 2003 and on or before July 1, 2017, and (iii) 100% of the |
20 | | proceeds of sales
made after July 1, 2017 and prior to January |
21 | | 1, 2024, (iv) 90% of the proceeds of sales made on or after |
22 | | January 1, 2024 and on or before December 31, 2028, and (v) |
23 | | 100% of the proceeds of sales made after December 31, 2028 |
24 | | thereafter .
If, at any time, however, the tax under this Act on |
25 | | sales of gasohol, as
defined in
the Use Tax Act, is imposed at |
26 | | the rate of 1.25%, then the
tax imposed by this Act applies to |
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1 | | 100% of the proceeds of sales of gasohol
made during that time.
|
2 | | With respect to mid-range ethanol blends, as defined in |
3 | | Section 3-44.3 of the Use Tax Act, the tax imposed by this Act |
4 | | applies to (i) 80%
of the proceeds of sales made on or after |
5 | | January 1, 2024 and on or before December 31, 2028 and (ii) |
6 | | 100% of the proceeds of sales made
after December 31, 2028. If, |
7 | | at any time, however, the tax under this Act on sales of |
8 | | mid-range ethanol blends is
imposed at the
rate of 1.25%, then |
9 | | the tax imposed by this Act applies to 100% of the proceeds
of |
10 | | sales of mid-range ethanol blends made during that time. |
11 | | With respect to majority blended ethanol fuel, as defined |
12 | | in the Use Tax Act,
the
tax
imposed by this Act does not apply |
13 | | to the proceeds of sales made on or after
July 1, 2003 and on |
14 | | or before December 31, 2028 December 31, 2023 but applies to |
15 | | 100% of the
proceeds of sales made thereafter.
|
16 | | With respect to biodiesel blends, as defined in the Use |
17 | | Tax Act, with no less
than 1% and no
more than 10% biodiesel, |
18 | | the tax imposed by this Act
applies to (i) 80% of the proceeds |
19 | | of sales made on or after July 1, 2003
and on or before |
20 | | December 31, 2018 and (ii) 100% of the
proceeds of sales made |
21 | | after December 31, 2018 and before January 1, 2024. On and |
22 | | after January 1, 2024 and on or before December 31, 2030, the |
23 | | taxation of biodiesel, renewable diesel, and biodiesel blends |
24 | | shall be as provided in Section 3-5.1 of the Use Tax Act.
If, |
25 | | at any time, however, the tax under this Act on sales of |
26 | | biodiesel blends,
as
defined in the Use Tax Act, with no less |
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1 | | than 1% and no more than 10% biodiesel
is imposed at the rate |
2 | | of 1.25%, then the
tax imposed by this Act applies to 100% of |
3 | | the proceeds of sales of biodiesel
blends with no less than 1% |
4 | | and no more than 10% biodiesel
made
during that time.
|
5 | | With respect to biodiesel, as defined in the Use Tax Act, |
6 | | and biodiesel
blends, as defined in the Use Tax Act, with
more |
7 | | than 10% but no more than 99% biodiesel, the tax imposed by |
8 | | this Act
does not apply to the proceeds of sales made on or |
9 | | after July 1, 2003
and on or before December 31, 2023. On and |
10 | | after January 1, 2024 and on or before December 31, 2030, the |
11 | | taxation of biodiesel, renewable diesel, and biodiesel blends |
12 | | shall be as provided in Section 3-5.1 of the Use Tax Act.
|
13 | | Until July 1, 2022 and beginning again on July 1, 2023, |
14 | | with respect to food for human consumption that is to be |
15 | | consumed off the
premises where it is sold (other than |
16 | | alcoholic beverages, food consisting of or infused with adult |
17 | | use cannabis, soft drinks, and
food that has been prepared for |
18 | | immediate consumption), the tax is imposed at the rate of 1%. |
19 | | Beginning July 1, 2022 and until July 1, 2023, with respect to |
20 | | food for human consumption that is to be consumed off the |
21 | | premises where it is sold (other than alcoholic beverages, |
22 | | food consisting of or infused with adult use cannabis, soft |
23 | | drinks, and food that has been prepared for immediate |
24 | | consumption), the tax is imposed at the rate of 0%. |
25 | | With respect to prescription and
nonprescription |
26 | | medicines, drugs, medical appliances, products classified as |
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1 | | Class III medical devices by the United States Food and Drug |
2 | | Administration that are used for cancer treatment pursuant to |
3 | | a prescription, as well as any accessories and components |
4 | | related to those devices, modifications to a motor
vehicle for |
5 | | the purpose of rendering it usable by a person with a |
6 | | disability, and
insulin, blood sugar testing materials, |
7 | | syringes, and needles used by human diabetics, the tax is |
8 | | imposed at the rate of 1%. For the purposes of this
Section, |
9 | | until September 1, 2009: the term "soft drinks" means any |
10 | | complete, finished, ready-to-use,
non-alcoholic drink, whether |
11 | | carbonated or not, including , but not limited to ,
soda water, |
12 | | cola, fruit juice, vegetable juice, carbonated water, and all |
13 | | other
preparations commonly known as soft drinks of whatever |
14 | | kind or description that
are contained in any closed or sealed |
15 | | bottle, can, carton, or container,
regardless of size; but |
16 | | "soft drinks" does not include coffee, tea, non-carbonated
|
17 | | water, infant formula, milk or milk products as defined in the |
18 | | Grade A
Pasteurized Milk and Milk Products Act, or drinks |
19 | | containing 50% or more
natural fruit or vegetable juice.
|
20 | | Notwithstanding any other provisions of this
Act, |
21 | | beginning September 1, 2009, "soft drinks" means non-alcoholic |
22 | | beverages that contain natural or artificial sweeteners. "Soft |
23 | | drinks" does do not include beverages that contain milk or |
24 | | milk products, soy, rice or similar milk substitutes, or |
25 | | greater than 50% of vegetable or fruit juice by volume. |
26 | | Until August 1, 2009, and notwithstanding any other |
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1 | | provisions of this
Act, "food for human consumption that is to |
2 | | be consumed off the premises where
it is sold" includes all |
3 | | food sold through a vending machine, except soft
drinks and |
4 | | food products that are dispensed hot from a vending machine,
|
5 | | regardless of the location of the vending machine. Beginning |
6 | | August 1, 2009, and notwithstanding any other provisions of |
7 | | this Act, "food for human consumption that is to be consumed |
8 | | off the premises where it is sold" includes all food sold |
9 | | through a vending machine, except soft drinks, candy, and food |
10 | | products that are dispensed hot from a vending machine, |
11 | | regardless of the location of the vending machine.
|
12 | | Notwithstanding any other provisions of this
Act, |
13 | | beginning September 1, 2009, "food for human consumption that |
14 | | is to be consumed off the premises where
it is sold" does not |
15 | | include candy. For purposes of this Section, "candy" means a |
16 | | preparation of sugar, honey, or other natural or artificial |
17 | | sweeteners in combination with chocolate, fruits, nuts or |
18 | | other ingredients or flavorings in the form of bars, drops, or |
19 | | pieces. "Candy" does not include any preparation that contains |
20 | | flour or requires refrigeration. |
21 | | Notwithstanding any other provisions of this
Act, |
22 | | beginning September 1, 2009, "nonprescription medicines and |
23 | | drugs" does not include grooming and hygiene products. For |
24 | | purposes of this Section, "grooming and hygiene products" |
25 | | includes, but is not limited to, soaps and cleaning solutions, |
26 | | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan |
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1 | | lotions and screens, unless those products are available by |
2 | | prescription only, regardless of whether the products meet the |
3 | | definition of "over-the-counter-drugs". For the purposes of |
4 | | this paragraph, "over-the-counter-drug" means a drug for human |
5 | | use that contains a label that identifies the product as a drug |
6 | | as required by 21 CFR C.F.R. § 201.66. The |
7 | | "over-the-counter-drug" label includes: |
8 | | (A) a A "Drug Facts" panel; or |
9 | | (B) a A statement of the "active ingredient(s)" with a |
10 | | list of those ingredients contained in the compound, |
11 | | substance or preparation.
|
12 | | Beginning on January 1, 2014 ( the effective date of Public |
13 | | Act 98-122) this amendatory Act of the 98th General Assembly , |
14 | | "prescription and nonprescription medicines and drugs" |
15 | | includes medical cannabis purchased from a registered |
16 | | dispensing organization under the Compassionate Use of Medical |
17 | | Cannabis Program Act. |
18 | | As used in this Section, "adult use cannabis" means |
19 | | cannabis subject to tax under the Cannabis Cultivation |
20 | | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law |
21 | | and does not include cannabis subject to tax under the |
22 | | Compassionate Use of Medical Cannabis Program Act. |
23 | | (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19; |
24 | | 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff. |
25 | | 4-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22; |
26 | | 102-700, Article 65, Section 65-10, eff. 4-19-22; revised |
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1 | | 6-1-22.)
|
2 | | (35 ILCS 120/2d) (from Ch. 120, par. 441d) |
3 | | Sec. 2d. Tax prepayment by motor fuel retailer. |
4 | | (a) Any person engaged in the business of selling motor |
5 | | fuel at
retail, as defined in the Motor Fuel Tax Law, and who |
6 | | is not a
licensed distributor or supplier, as defined in the |
7 | | Motor Fuel Tax Law,
shall prepay to his or her distributor, |
8 | | supplier, or other reseller of
motor fuel a portion of the tax |
9 | | imposed by this Act if the distributor,
supplier, or other |
10 | | reseller of motor fuel is registered under Section 2a or
|
11 | | Section 2c of this Act. The prepayment requirement provided |
12 | | for in this
Section does not apply to liquid propane gas. |
13 | | (b) Beginning on July 1, 2000 and through December 31, |
14 | | 2000, the Retailers'
Occupation Tax paid to the distributor, |
15 | | supplier,
or other reseller shall be an amount equal to $0.01 |
16 | | per
gallon of the motor fuel, except gasohol as defined in |
17 | | Section 2-10 of
this Act which shall be an amount equal to |
18 | | $0.01 per gallon,
purchased from the distributor, supplier, or |
19 | | other reseller. |
20 | | (c) Before July 1, 2000 and then beginning on January 1, |
21 | | 2001 and through June
30, 2003,
the Retailers' Occupation Tax |
22 | | paid
to the distributor, supplier, or other reseller shall be |
23 | | an amount equal to
$0.04 per gallon
of the motor fuel, except |
24 | | gasohol as defined in Section 2-10 of this Act which
shall be |
25 | | an
amount equal to $0.03 per gallon, purchased from the |
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1 | | distributor, supplier, or
other
reseller. |
2 | | (d) Beginning July 1, 2003 and through December 31, 2010, |
3 | | the Retailers' Occupation Tax paid
to
the
distributor, |
4 | | supplier, or other reseller shall be an amount equal to $0.06 |
5 | | per
gallon of the
motor fuel, except gasohol as defined in |
6 | | Section 2-10 of this Act which shall
be an
amount equal to |
7 | | $0.05 per gallon, purchased from the distributor, supplier, or
|
8 | | other
reseller. |
9 | | (e) Beginning on January 1, 2011 and thereafter, the |
10 | | Retailers' Occupation Tax paid to the distributor, supplier, |
11 | | or other reseller shall be at the rate established by the |
12 | | Department under this subsection. The rate shall be |
13 | | established by the Department on January 1 and July 1 of each |
14 | | year using the average selling price, as defined in Section 1 |
15 | | of this Act, per gallon of motor fuel sold in the State during |
16 | | the previous 6 months and multiplying that amount by 6.25% to |
17 | | determine the cents per gallon rate. Beginning on January 1, |
18 | | 2024 and through December 31, 2028, In the case of biodiesel |
19 | | blends, as defined in Section 3-42 of the Use Tax Act, with no |
20 | | less than 1% and no more than 10% biodiesel, and in the case of |
21 | | gasohol, as defined in Section 3-40 of the Use Tax Act, the |
22 | | rate shall be 90% 80% of the rate established by the Department |
23 | | under this subsection for motor fuel. Beginning on January 1, |
24 | | 2024 and through December 31, 2028, in the case of mid-range |
25 | | ethanol blends, as defined in Section 3-44.3 of the Use Tax |
26 | | Act, the rate shall be 80% of the rate established by the |
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1 | | Department under this subsection for motor fuel. The |
2 | | Department shall provide persons subject to this Section |
3 | | notice of the rate established under this subsection at least |
4 | | 20 days prior to each January 1 and July 1. Publication of the |
5 | | established rate on the Department's internet website shall |
6 | | constitute sufficient notice under this Section. The |
7 | | Department may use data derived from independent surveys |
8 | | conducted or accumulated by third parties to determine the |
9 | | average selling price per gallon of motor fuel sold in the |
10 | | State. |
11 | | (f) Any person engaged in the business of selling motor |
12 | | fuel at retail shall
be entitled to a credit against tax due |
13 | | under this Act in an amount equal
to the tax paid to the |
14 | | distributor, supplier, or other reseller. |
15 | | (g) Every distributor, supplier, or other reseller |
16 | | registered as provided in
Section 2a or Section 2c of this Act |
17 | | shall remit the prepaid tax on all
motor fuel that is due from |
18 | | any person engaged in the business of selling
at retail motor |
19 | | fuel with the returns filed under Section 2f or Section 3
of |
20 | | this Act, but the vendors discount provided in Section 3 shall |
21 | | not apply
to the amount of prepaid tax that is remitted. Any |
22 | | distributor or supplier
who fails to properly collect and |
23 | | remit the tax shall be liable for the
tax. For purposes of this |
24 | | Section, the prepaid tax is due on invoiced
gallons sold |
25 | | during a month by the 20th day of the following month. |
26 | | (Source: P.A. 96-1384, eff. 7-29-10.) |
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1 | | ARTICLE 15. ELECTRIC GENERATION EQUIPMENT |
2 | | Section 15-5. The Use Tax Act is amended by changing |
3 | | Section 3-5 as follows:
|
4 | | (35 ILCS 105/3-5)
|
5 | | Sec. 3-5. Exemptions. Use of the following tangible |
6 | | personal property is exempt from the tax imposed by this Act:
|
7 | | (1) Personal property purchased from a corporation, |
8 | | society, association,
foundation, institution, or |
9 | | organization, other than a limited liability
company, that is |
10 | | organized and operated as a not-for-profit service enterprise
|
11 | | for the benefit of persons 65 years of age or older if the |
12 | | personal property was not purchased by the enterprise for the |
13 | | purpose of resale by the
enterprise.
|
14 | | (2) Personal property purchased by a not-for-profit |
15 | | Illinois county
fair association for use in conducting, |
16 | | operating, or promoting the
county fair.
|
17 | | (3) Personal property purchased by a not-for-profit
arts |
18 | | or cultural organization that establishes, by proof required |
19 | | by the
Department by
rule, that it has received an exemption |
20 | | under Section 501(c)(3) of the Internal
Revenue Code and that |
21 | | is organized and operated primarily for the
presentation
or |
22 | | support of arts or cultural programming, activities, or |
23 | | services. These
organizations include, but are not limited to, |
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1 | | music and dramatic arts
organizations such as symphony |
2 | | orchestras and theatrical groups, arts and
cultural service |
3 | | organizations, local arts councils, visual arts organizations,
|
4 | | and media arts organizations.
On and after July 1, 2001 (the |
5 | | effective date of Public Act 92-35), however, an entity |
6 | | otherwise eligible for this exemption shall not
make tax-free |
7 | | purchases unless it has an active identification number issued |
8 | | by
the Department.
|
9 | | (4) Personal property purchased by a governmental body, by |
10 | | a
corporation, society, association, foundation, or |
11 | | institution organized and
operated exclusively for charitable, |
12 | | religious, or educational purposes, or
by a not-for-profit |
13 | | corporation, society, association, foundation,
institution, or |
14 | | organization that has no compensated officers or employees
and |
15 | | that is organized and operated primarily for the recreation of |
16 | | persons
55 years of age or older. A limited liability company |
17 | | may qualify for the
exemption under this paragraph only if the |
18 | | limited liability company is
organized and operated |
19 | | exclusively for educational purposes. On and after July
1, |
20 | | 1987, however, no entity otherwise eligible for this exemption |
21 | | shall make
tax-free purchases unless it has an active |
22 | | exemption identification number
issued by the Department.
|
23 | | (5) Until July 1, 2003, a passenger car that is a |
24 | | replacement vehicle to
the extent that the
purchase price of |
25 | | the car is subject to the Replacement Vehicle Tax.
|
26 | | (6) Until July 1, 2003 and beginning again on September 1, |
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1 | | 2004 through August 30, 2014, graphic arts machinery and |
2 | | equipment, including
repair and replacement
parts, both new |
3 | | and used, and including that manufactured on special order,
|
4 | | certified by the purchaser to be used primarily for graphic |
5 | | arts production,
and including machinery and equipment |
6 | | purchased for lease.
Equipment includes chemicals or chemicals |
7 | | acting as catalysts but only if
the
chemicals or chemicals |
8 | | acting as catalysts effect a direct and immediate change
upon |
9 | | a graphic arts product. Beginning on July 1, 2017, graphic |
10 | | arts machinery and equipment is included in the manufacturing |
11 | | and assembling machinery and equipment exemption under |
12 | | paragraph (18).
|
13 | | (7) Farm chemicals.
|
14 | | (8) Legal tender, currency, medallions, or gold or silver |
15 | | coinage issued by
the State of Illinois, the government of the |
16 | | United States of America, or the
government of any foreign |
17 | | country, and bullion.
|
18 | | (9) Personal property purchased from a teacher-sponsored |
19 | | student
organization affiliated with an elementary or |
20 | | secondary school located in
Illinois.
|
21 | | (10) A motor vehicle that is used for automobile renting, |
22 | | as defined in the
Automobile Renting Occupation and Use Tax |
23 | | Act.
|
24 | | (11) Farm machinery and equipment, both new and used,
|
25 | | including that manufactured on special order, certified by the |
26 | | purchaser
to be used primarily for production agriculture or |
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1 | | State or federal
agricultural programs, including individual |
2 | | replacement parts for
the machinery and equipment, including |
3 | | machinery and equipment
purchased
for lease,
and including |
4 | | implements of husbandry defined in Section 1-130 of
the |
5 | | Illinois Vehicle Code, farm machinery and agricultural |
6 | | chemical and
fertilizer spreaders, and nurse wagons required |
7 | | to be registered
under Section 3-809 of the Illinois Vehicle |
8 | | Code,
but excluding other motor
vehicles required to be
|
9 | | registered under the Illinois Vehicle Code.
Horticultural |
10 | | polyhouses or hoop houses used for propagating, growing, or
|
11 | | overwintering plants shall be considered farm machinery and |
12 | | equipment under
this item (11).
Agricultural chemical tender |
13 | | tanks and dry boxes shall include units sold
separately from a |
14 | | motor vehicle required to be licensed and units sold mounted
|
15 | | on a motor vehicle required to be licensed if the selling price |
16 | | of the tender
is separately stated.
|
17 | | Farm machinery and equipment shall include precision |
18 | | farming equipment
that is
installed or purchased to be |
19 | | installed on farm machinery and equipment
including, but not |
20 | | limited to, tractors, harvesters, sprayers, planters,
seeders, |
21 | | or spreaders.
Precision farming equipment includes, but is not |
22 | | limited to, soil testing
sensors, computers, monitors, |
23 | | software, global positioning
and mapping systems, and other |
24 | | such equipment.
|
25 | | Farm machinery and equipment also includes computers, |
26 | | sensors, software, and
related equipment used primarily in the
|
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1 | | computer-assisted operation of production agriculture |
2 | | facilities, equipment,
and
activities such as, but not limited |
3 | | to,
the collection, monitoring, and correlation of
animal and |
4 | | crop data for the purpose of
formulating animal diets and |
5 | | agricultural chemicals. |
6 | | Beginning on January 1, 2024, farm machinery and equipment |
7 | | also includes electrical power generation equipment used |
8 | | primarily for production agriculture. |
9 | | This item (11) is exempt
from the provisions of
Section |
10 | | 3-90.
|
11 | | (12) Until June 30, 2013, fuel and petroleum products sold |
12 | | to or used by an air common
carrier, certified by the carrier |
13 | | to be used for consumption, shipment, or
storage in the |
14 | | conduct of its business as an air common carrier, for a
flight |
15 | | destined for or returning from a location or locations
outside |
16 | | the United States without regard to previous or subsequent |
17 | | domestic
stopovers.
|
18 | | Beginning July 1, 2013, fuel and petroleum products sold |
19 | | to or used by an air carrier, certified by the carrier to be |
20 | | used for consumption, shipment, or storage in the conduct of |
21 | | its business as an air common carrier, for a flight that (i) is |
22 | | engaged in foreign trade or is engaged in trade between the |
23 | | United States and any of its possessions and (ii) transports |
24 | | at least one individual or package for hire from the city of |
25 | | origination to the city of final destination on the same |
26 | | aircraft, without regard to a change in the flight number of |
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1 | | that aircraft. |
2 | | (13) Proceeds of mandatory service charges separately
|
3 | | stated on customers' bills for the purchase and consumption of |
4 | | food and
beverages purchased at retail from a retailer, to the |
5 | | extent that the proceeds
of the service charge are in fact |
6 | | turned over as tips or as a substitute
for tips to the |
7 | | employees who participate directly in preparing, serving,
|
8 | | hosting or cleaning up the food or beverage function with |
9 | | respect to which
the service charge is imposed.
|
10 | | (14) Until July 1, 2003, oil field exploration, drilling, |
11 | | and production
equipment,
including (i) rigs and parts of |
12 | | rigs, rotary
rigs, cable tool rigs, and workover rigs, (ii) |
13 | | pipe and tubular goods,
including casing and drill strings, |
14 | | (iii) pumps and pump-jack units, (iv)
storage tanks and flow |
15 | | lines, (v) any individual replacement part for oil
field |
16 | | exploration, drilling, and production equipment, and (vi) |
17 | | machinery and
equipment purchased
for lease; but excluding |
18 | | motor vehicles required to be registered under the
Illinois |
19 | | Vehicle Code.
|
20 | | (15) Photoprocessing machinery and equipment, including |
21 | | repair and
replacement parts, both new and used, including |
22 | | that
manufactured on special order, certified by the purchaser |
23 | | to be used
primarily for photoprocessing, and including
|
24 | | photoprocessing machinery and equipment purchased for lease.
|
25 | | (16) Until July 1, 2028, coal and aggregate exploration, |
26 | | mining, off-highway hauling,
processing, maintenance, and |
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1 | | reclamation equipment,
including replacement parts and |
2 | | equipment, and
including equipment purchased for lease, but |
3 | | excluding motor
vehicles required to be registered under the |
4 | | Illinois Vehicle Code. The changes made to this Section by |
5 | | Public Act 97-767 apply on and after July 1, 2003, but no claim |
6 | | for credit or refund is allowed on or after August 16, 2013 |
7 | | (the effective date of Public Act 98-456)
for such taxes paid |
8 | | during the period beginning July 1, 2003 and ending on August |
9 | | 16, 2013 (the effective date of Public Act 98-456).
|
10 | | (17) Until July 1, 2003, distillation machinery and |
11 | | equipment, sold as a
unit or kit,
assembled or installed by the |
12 | | retailer, certified by the user to be used
only for the |
13 | | production of ethyl alcohol that will be used for consumption
|
14 | | as motor fuel or as a component of motor fuel for the personal |
15 | | use of the
user, and not subject to sale or resale.
|
16 | | (18) Manufacturing and assembling machinery and equipment |
17 | | used
primarily in the process of manufacturing or assembling |
18 | | tangible
personal property for wholesale or retail sale or |
19 | | lease, whether that sale
or lease is made directly by the |
20 | | manufacturer or by some other person,
whether the materials |
21 | | used in the process are
owned by the manufacturer or some other |
22 | | person, or whether that sale or
lease is made apart from or as |
23 | | an incident to the seller's engaging in
the service occupation |
24 | | of producing machines, tools, dies, jigs,
patterns, gauges, or |
25 | | other similar items of no commercial value on
special order |
26 | | for a particular purchaser. The exemption provided by this |
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1 | | paragraph (18) includes production related tangible personal |
2 | | property, as defined in Section 3-50, purchased on or after |
3 | | July 1, 2019. The exemption provided by this paragraph (18) |
4 | | does not include machinery and equipment used in (i) the |
5 | | generation of electricity for wholesale or retail sale; (ii) |
6 | | the generation or treatment of natural or artificial gas for |
7 | | wholesale or retail sale that is delivered to customers |
8 | | through pipes, pipelines, or mains; or (iii) the treatment of |
9 | | water for wholesale or retail sale that is delivered to |
10 | | customers through pipes, pipelines, or mains. The provisions |
11 | | of Public Act 98-583 are declaratory of existing law as to the |
12 | | meaning and scope of this exemption. Beginning on July 1, |
13 | | 2017, the exemption provided by this paragraph (18) includes, |
14 | | but is not limited to, graphic arts machinery and equipment, |
15 | | as defined in paragraph (6) of this Section.
|
16 | | (19) Personal property delivered to a purchaser or |
17 | | purchaser's donee
inside Illinois when the purchase order for |
18 | | that personal property was
received by a florist located |
19 | | outside Illinois who has a florist located
inside Illinois |
20 | | deliver the personal property.
|
21 | | (20) Semen used for artificial insemination of livestock |
22 | | for direct
agricultural production.
|
23 | | (21) Horses, or interests in horses, registered with and |
24 | | meeting the
requirements of any of the
Arabian Horse Club |
25 | | Registry of America, Appaloosa Horse Club, American Quarter
|
26 | | Horse Association, United States
Trotting Association, or |
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1 | | Jockey Club, as appropriate, used for
purposes of breeding or |
2 | | racing for prizes. This item (21) is exempt from the |
3 | | provisions of Section 3-90, and the exemption provided for |
4 | | under this item (21) applies for all periods beginning May 30, |
5 | | 1995, but no claim for credit or refund is allowed on or after |
6 | | January 1, 2008
for such taxes paid during the period |
7 | | beginning May 30, 2000 and ending on January 1, 2008.
|
8 | | (22) Computers and communications equipment utilized for |
9 | | any
hospital
purpose
and equipment used in the diagnosis,
|
10 | | analysis, or treatment of hospital patients purchased by a |
11 | | lessor who leases
the
equipment, under a lease of one year or |
12 | | longer executed or in effect at the
time the lessor would |
13 | | otherwise be subject to the tax imposed by this Act, to a
|
14 | | hospital
that has been issued an active tax exemption |
15 | | identification number by
the
Department under Section 1g of |
16 | | the Retailers' Occupation Tax Act. If the
equipment is leased |
17 | | in a manner that does not qualify for
this exemption or is used |
18 | | in any other non-exempt manner, the lessor
shall be liable for |
19 | | the
tax imposed under this Act or the Service Use Tax Act, as |
20 | | the case may
be, based on the fair market value of the property |
21 | | at the time the
non-qualifying use occurs. No lessor shall |
22 | | collect or attempt to collect an
amount (however
designated) |
23 | | that purports to reimburse that lessor for the tax imposed by |
24 | | this
Act or the Service Use Tax Act, as the case may be, if the |
25 | | tax has not been
paid by the lessor. If a lessor improperly |
26 | | collects any such amount from the
lessee, the lessee shall |
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1 | | have a legal right to claim a refund of that amount
from the |
2 | | lessor. If, however, that amount is not refunded to the lessee |
3 | | for
any reason, the lessor is liable to pay that amount to the |
4 | | Department.
|
5 | | (23) Personal property purchased by a lessor who leases |
6 | | the
property, under
a
lease of
one year or longer executed or |
7 | | in effect at the time
the lessor would otherwise be subject to |
8 | | the tax imposed by this Act,
to a governmental body
that has |
9 | | been issued an active sales tax exemption identification |
10 | | number by the
Department under Section 1g of the Retailers' |
11 | | Occupation Tax Act.
If the
property is leased in a manner that |
12 | | does not qualify for
this exemption
or used in any other |
13 | | non-exempt manner, the lessor shall be liable for the
tax |
14 | | imposed under this Act or the Service Use Tax Act, as the case |
15 | | may
be, based on the fair market value of the property at the |
16 | | time the
non-qualifying use occurs. No lessor shall collect or |
17 | | attempt to collect an
amount (however
designated) that |
18 | | purports to reimburse that lessor for the tax imposed by this
|
19 | | Act or the Service Use Tax Act, as the case may be, if the tax |
20 | | has not been
paid by the lessor. If a lessor improperly |
21 | | collects any such amount from the
lessee, the lessee shall |
22 | | have a legal right to claim a refund of that amount
from the |
23 | | lessor. If, however, that amount is not refunded to the lessee |
24 | | for
any reason, the lessor is liable to pay that amount to the |
25 | | Department.
|
26 | | (24) Beginning with taxable years ending on or after |
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1 | | December
31, 1995
and
ending with taxable years ending on or |
2 | | before December 31, 2004,
personal property that is
donated |
3 | | for disaster relief to be used in a State or federally declared
|
4 | | disaster area in Illinois or bordering Illinois by a |
5 | | manufacturer or retailer
that is registered in this State to a |
6 | | corporation, society, association,
foundation, or institution |
7 | | that has been issued a sales tax exemption
identification |
8 | | number by the Department that assists victims of the disaster
|
9 | | who reside within the declared disaster area.
|
10 | | (25) Beginning with taxable years ending on or after |
11 | | December
31, 1995 and
ending with taxable years ending on or |
12 | | before December 31, 2004, personal
property that is used in |
13 | | the performance of infrastructure repairs in this
State, |
14 | | including but not limited to municipal roads and streets, |
15 | | access roads,
bridges, sidewalks, waste disposal systems, |
16 | | water and sewer line extensions,
water distribution and |
17 | | purification facilities, storm water drainage and
retention |
18 | | facilities, and sewage treatment facilities, resulting from a |
19 | | State
or federally declared disaster in Illinois or bordering |
20 | | Illinois when such
repairs are initiated on facilities located |
21 | | in the declared disaster area
within 6 months after the |
22 | | disaster.
|
23 | | (26) Beginning July 1, 1999, game or game birds purchased |
24 | | at a "game
breeding
and hunting preserve area" as that term is
|
25 | | used in
the Wildlife Code. This paragraph is exempt from the |
26 | | provisions
of
Section 3-90.
|
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1 | | (27) A motor vehicle, as that term is defined in Section |
2 | | 1-146
of the
Illinois
Vehicle Code, that is donated to a |
3 | | corporation, limited liability company,
society, association, |
4 | | foundation, or institution that is determined by the
|
5 | | Department to be organized and operated exclusively for |
6 | | educational purposes.
For purposes of this exemption, "a |
7 | | corporation, limited liability company,
society, association, |
8 | | foundation, or institution organized and operated
exclusively |
9 | | for educational purposes" means all tax-supported public |
10 | | schools,
private schools that offer systematic instruction in |
11 | | useful branches of
learning by methods common to public |
12 | | schools and that compare favorably in
their scope and |
13 | | intensity with the course of study presented in tax-supported
|
14 | | schools, and vocational or technical schools or institutes |
15 | | organized and
operated exclusively to provide a course of |
16 | | study of not less than 6 weeks
duration and designed to prepare |
17 | | individuals to follow a trade or to pursue a
manual, |
18 | | technical, mechanical, industrial, business, or commercial
|
19 | | occupation.
|
20 | | (28) Beginning January 1, 2000, personal property, |
21 | | including
food,
purchased through fundraising
events for the |
22 | | benefit of
a public or private elementary or
secondary school, |
23 | | a group of those schools, or one or more school
districts if |
24 | | the events are
sponsored by an entity recognized by the school |
25 | | district that consists
primarily of volunteers and includes
|
26 | | parents and teachers of the school children. This paragraph |
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1 | | does not apply
to fundraising
events (i) for the benefit of |
2 | | private home instruction or (ii)
for which the fundraising |
3 | | entity purchases the personal property sold at
the events from |
4 | | another individual or entity that sold the property for the
|
5 | | purpose of resale by the fundraising entity and that
profits |
6 | | from the sale to the
fundraising entity. This paragraph is |
7 | | exempt
from the provisions
of Section 3-90.
|
8 | | (29) Beginning January 1, 2000 and through December 31, |
9 | | 2001, new or
used automatic vending
machines that prepare and |
10 | | serve hot food and beverages, including coffee, soup,
and
|
11 | | other items, and replacement parts for these machines.
|
12 | | Beginning January 1,
2002 and through June 30, 2003, machines |
13 | | and parts for machines used in
commercial, coin-operated |
14 | | amusement and vending business if a use or occupation
tax is |
15 | | paid on the gross receipts derived from the use of the |
16 | | commercial,
coin-operated amusement and vending machines.
This
|
17 | | paragraph
is exempt from the provisions of Section 3-90.
|
18 | | (30) Beginning January 1, 2001 and through June 30, 2016, |
19 | | food for human consumption that is to be consumed off the |
20 | | premises
where it is sold (other than alcoholic beverages, |
21 | | soft drinks, and food that
has been prepared for immediate |
22 | | consumption) and prescription and
nonprescription medicines, |
23 | | drugs, medical appliances, and insulin, urine
testing |
24 | | materials, syringes, and needles used by diabetics, for human |
25 | | use, when
purchased for use by a person receiving medical |
26 | | assistance under Article V of
the Illinois Public Aid Code who |
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1 | | resides in a licensed long-term care facility,
as defined in |
2 | | the Nursing Home Care Act, or in a licensed facility as defined |
3 | | in the ID/DD Community Care Act, the MC/DD Act, or the |
4 | | Specialized Mental Health Rehabilitation Act of 2013.
|
5 | | (31) Beginning on August 2, 2001 (the effective date of |
6 | | Public Act 92-227),
computers and communications equipment
|
7 | | utilized for any hospital purpose and equipment used in the |
8 | | diagnosis,
analysis, or treatment of hospital patients |
9 | | purchased by a lessor who leases
the equipment, under a lease |
10 | | of one year or longer executed or in effect at the
time the |
11 | | lessor would otherwise be subject to the tax imposed by this |
12 | | Act, to a
hospital that has been issued an active tax exemption |
13 | | identification number by
the Department under Section 1g of |
14 | | the Retailers' Occupation Tax Act. If the
equipment is leased |
15 | | in a manner that does not qualify for this exemption or is
used |
16 | | in any other nonexempt manner, the lessor shall be liable for |
17 | | the tax
imposed under this Act or the Service Use Tax Act, as |
18 | | the case may be, based on
the fair market value of the property |
19 | | at the time the nonqualifying use
occurs. No lessor shall |
20 | | collect or attempt to collect an amount (however
designated) |
21 | | that purports to reimburse that lessor for the tax imposed by |
22 | | this
Act or the Service Use Tax Act, as the case may be, if the |
23 | | tax has not been
paid by the lessor. If a lessor improperly |
24 | | collects any such amount from the
lessee, the lessee shall |
25 | | have a legal right to claim a refund of that amount
from the |
26 | | lessor. If, however, that amount is not refunded to the lessee |
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1 | | for
any reason, the lessor is liable to pay that amount to the |
2 | | Department.
This paragraph is exempt from the provisions of |
3 | | Section 3-90.
|
4 | | (32) Beginning on August 2, 2001 (the effective date of |
5 | | Public Act 92-227),
personal property purchased by a lessor |
6 | | who leases the property,
under a lease of one year or longer |
7 | | executed or in effect at the time the
lessor would otherwise be |
8 | | subject to the tax imposed by this Act, to a
governmental body |
9 | | that has been issued an active sales tax exemption
|
10 | | identification number by the Department under Section 1g of |
11 | | the Retailers'
Occupation Tax Act. If the property is leased |
12 | | in a manner that does not
qualify for this exemption or used in |
13 | | any other nonexempt manner, the lessor
shall be liable for the |
14 | | tax imposed under this Act or the Service Use Tax Act,
as the |
15 | | case may be, based on the fair market value of the property at |
16 | | the time
the nonqualifying use occurs. No lessor shall collect |
17 | | or attempt to collect
an amount (however designated) that |
18 | | purports to reimburse that lessor for the
tax imposed by this |
19 | | Act or the Service Use Tax Act, as the case may be, if the
tax |
20 | | has not been paid by the lessor. If a lessor improperly |
21 | | collects any such
amount from the lessee, the lessee shall |
22 | | have a legal right to claim a refund
of that amount from the |
23 | | lessor. If, however, that amount is not refunded to
the lessee |
24 | | for any reason, the lessor is liable to pay that amount to the
|
25 | | Department. This paragraph is exempt from the provisions of |
26 | | Section 3-90.
|
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1 | | (33) On and after July 1, 2003 and through June 30, 2004, |
2 | | the use in this State of motor vehicles of
the second division |
3 | | with a gross vehicle weight in excess of 8,000 pounds and
that |
4 | | are subject to the commercial distribution fee imposed under |
5 | | Section
3-815.1 of the Illinois Vehicle Code. Beginning on |
6 | | July 1, 2004 and through June 30, 2005, the use in this State |
7 | | of motor vehicles of the second division: (i) with a gross |
8 | | vehicle weight rating in excess of 8,000 pounds; (ii) that are |
9 | | subject to the commercial distribution fee imposed under |
10 | | Section 3-815.1 of the Illinois Vehicle Code; and (iii) that |
11 | | are primarily used for commercial purposes. Through June 30, |
12 | | 2005, this exemption applies to repair and
replacement parts |
13 | | added after the initial purchase of such a motor vehicle if
|
14 | | that motor
vehicle is used in a manner that would qualify for |
15 | | the rolling stock exemption
otherwise provided for in this |
16 | | Act. For purposes of this paragraph, the term "used for |
17 | | commercial purposes" means the transportation of persons or |
18 | | property in furtherance of any commercial or industrial |
19 | | enterprise, whether for-hire or not.
|
20 | | (34) Beginning January 1, 2008, tangible personal property |
21 | | used in the construction or maintenance of a community water |
22 | | supply, as defined under Section 3.145 of the Environmental |
23 | | Protection Act, that is operated by a not-for-profit |
24 | | corporation that holds a valid water supply permit issued |
25 | | under Title IV of the Environmental Protection Act. This |
26 | | paragraph is exempt from the provisions of Section 3-90. |
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1 | | (35) Beginning January 1, 2010 and continuing through |
2 | | December 31, 2024, materials, parts, equipment, components, |
3 | | and furnishings incorporated into or upon an aircraft as part |
4 | | of the modification, refurbishment, completion, replacement, |
5 | | repair, or maintenance of the aircraft. This exemption |
6 | | includes consumable supplies used in the modification, |
7 | | refurbishment, completion, replacement, repair, and |
8 | | maintenance of aircraft, but excludes any materials, parts, |
9 | | equipment, components, and consumable supplies used in the |
10 | | modification, replacement, repair, and maintenance of aircraft |
11 | | engines or power plants, whether such engines or power plants |
12 | | are installed or uninstalled upon any such aircraft. |
13 | | "Consumable supplies" include, but are not limited to, |
14 | | adhesive, tape, sandpaper, general purpose lubricants, |
15 | | cleaning solution, latex gloves, and protective films. This |
16 | | exemption applies only to the use of qualifying tangible |
17 | | personal property by persons who modify, refurbish, complete, |
18 | | repair, replace, or maintain aircraft and who (i) hold an Air |
19 | | Agency Certificate and are empowered to operate an approved |
20 | | repair station by the Federal Aviation Administration, (ii) |
21 | | have a Class IV Rating, and (iii) conduct operations in |
22 | | accordance with Part 145 of the Federal Aviation Regulations. |
23 | | The exemption does not include aircraft operated by a |
24 | | commercial air carrier providing scheduled passenger air |
25 | | service pursuant to authority issued under Part 121 or Part |
26 | | 129 of the Federal Aviation Regulations. The changes made to |
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1 | | this paragraph (35) by Public Act 98-534 are declarative of |
2 | | existing law. It is the intent of the General Assembly that the |
3 | | exemption under this paragraph (35) applies continuously from |
4 | | January 1, 2010 through December 31, 2024; however, no claim |
5 | | for credit or refund is allowed for taxes paid as a result of |
6 | | the disallowance of this exemption on or after January 1, 2015 |
7 | | and prior to February 5, 2020 ( the effective date of Public Act |
8 | | 101-629) this amendatory Act of the 101st General Assembly . |
9 | | (36) Tangible personal property purchased by a |
10 | | public-facilities corporation, as described in Section |
11 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
12 | | constructing or furnishing a municipal convention hall, but |
13 | | only if the legal title to the municipal convention hall is |
14 | | transferred to the municipality without any further |
15 | | consideration by or on behalf of the municipality at the time |
16 | | of the completion of the municipal convention hall or upon the |
17 | | retirement or redemption of any bonds or other debt |
18 | | instruments issued by the public-facilities corporation in |
19 | | connection with the development of the municipal convention |
20 | | hall. This exemption includes existing public-facilities |
21 | | corporations as provided in Section 11-65-25 of the Illinois |
22 | | Municipal Code. This paragraph is exempt from the provisions |
23 | | of Section 3-90. |
24 | | (37) Beginning January 1, 2017 and through December 31, |
25 | | 2026, menstrual pads, tampons, and menstrual cups. |
26 | | (38) Merchandise that is subject to the Rental Purchase |
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1 | | Agreement Occupation and Use Tax. The purchaser must certify |
2 | | that the item is purchased to be rented subject to a rental |
3 | | purchase agreement, as defined in the Rental Purchase |
4 | | Agreement Act, and provide proof of registration under the |
5 | | Rental Purchase Agreement Occupation and Use Tax Act. This |
6 | | paragraph is exempt from the provisions of Section 3-90. |
7 | | (39) Tangible personal property purchased by a purchaser |
8 | | who is exempt from the tax imposed by this Act by operation of |
9 | | federal law. This paragraph is exempt from the provisions of |
10 | | Section 3-90. |
11 | | (40) Qualified tangible personal property used in the |
12 | | construction or operation of a data center that has been |
13 | | granted a certificate of exemption by the Department of |
14 | | Commerce and Economic Opportunity, whether that tangible |
15 | | personal property is purchased by the owner, operator, or |
16 | | tenant of the data center or by a contractor or subcontractor |
17 | | of the owner, operator, or tenant. Data centers that would |
18 | | have qualified for a certificate of exemption prior to January |
19 | | 1, 2020 had Public Act 101-31 been in effect may apply for and |
20 | | obtain an exemption for subsequent purchases of computer |
21 | | equipment or enabling software purchased or leased to upgrade, |
22 | | supplement, or replace computer equipment or enabling software |
23 | | purchased or leased in the original investment that would have |
24 | | qualified. |
25 | | The Department of Commerce and Economic Opportunity shall |
26 | | grant a certificate of exemption under this item (40) to |
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1 | | qualified data centers as defined by Section 605-1025 of the |
2 | | Department of Commerce and Economic Opportunity Law of the
|
3 | | Civil Administrative Code of Illinois. |
4 | | For the purposes of this item (40): |
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 |
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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 (40) is exempt from the provisions of Section |
11 | | 3-90. |
12 | | (41) Beginning July 1, 2022, breast pumps, breast pump |
13 | | collection and storage supplies, and breast pump kits. This |
14 | | item (41) is exempt from the provisions of Section 3-90. As |
15 | | used in this item (41): |
16 | | "Breast pump" means an electrically controlled or |
17 | | manually controlled pump device designed or marketed to be |
18 | | used to express milk from a human breast during lactation, |
19 | | including the pump device and any battery, AC adapter, or |
20 | | other power supply unit that is used to power the pump |
21 | | device and is packaged and sold with the pump device at the |
22 | | time of sale. |
23 | | "Breast pump collection and storage supplies" means |
24 | | items of tangible personal property designed or marketed |
25 | | to be used in conjunction with a breast pump to collect |
26 | | milk expressed from a human breast and to store collected |
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1 | | milk until it is ready for consumption. |
2 | | "Breast pump collection and storage supplies" |
3 | | includes, but is not limited to: breast shields and breast |
4 | | shield connectors; breast pump tubes and tubing adapters; |
5 | | breast pump valves and membranes; backflow protectors and |
6 | | backflow protector adaptors; bottles and bottle caps |
7 | | specific to the operation of the breast pump; and breast |
8 | | milk storage bags. |
9 | | "Breast pump collection and storage supplies" does not |
10 | | include: (1) bottles and bottle caps not specific to the |
11 | | operation of the breast pump; (2) breast pump travel bags |
12 | | and other similar carrying accessories, including ice |
13 | | packs, labels, and other similar products; (3) breast pump |
14 | | cleaning supplies; (4) nursing bras, bra pads, breast |
15 | | shells, and other similar products; and (5) creams, |
16 | | ointments, and other similar products that relieve |
17 | | breastfeeding-related symptoms or conditions of the |
18 | | breasts or nipples, unless sold as part of a breast pump |
19 | | kit that is pre-packaged by the breast pump manufacturer |
20 | | or distributor. |
21 | | "Breast pump kit" means a kit that: (1) contains no |
22 | | more than a breast pump, breast pump collection and |
23 | | storage supplies, a rechargeable battery for operating the |
24 | | breast pump, a breastmilk cooler, bottle stands, ice |
25 | | packs, and a breast pump carrying case; and (2) is |
26 | | pre-packaged as a breast pump kit by the breast pump |
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1 | | manufacturer or distributor. |
2 | | (42) (41) Tangible personal property sold by or on behalf |
3 | | of the State Treasurer pursuant to the Revised Uniform |
4 | | Unclaimed Property Act. This item (42) (41) is exempt from the |
5 | | provisions of Section 3-90. |
6 | | (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; |
7 | | 101-81, eff. 7-12-19; 101-629, eff. 2-5-20; 102-16, eff. |
8 | | 6-17-21; 102-700, Article 70, Section 70-5, eff. 4-19-22; |
9 | | 102-700, Article 75, Section 75-5, eff. 4-19-22; 102-1026, |
10 | | eff. 5-27-22; revised 8-1-22.)
|
11 | | Section 15-10. The Service Use Tax Act is amended by |
12 | | changing Section 3-5 as follows:
|
13 | | (35 ILCS 110/3-5)
|
14 | | Sec. 3-5. Exemptions. Use of the following tangible |
15 | | personal property
is exempt from the tax imposed by this Act:
|
16 | | (1) Personal property purchased from a corporation, |
17 | | society,
association, foundation, institution, or |
18 | | organization, other than a limited
liability company, that is |
19 | | organized and operated as a not-for-profit service
enterprise |
20 | | for the benefit of persons 65 years of age or older if the |
21 | | personal
property was not purchased by the enterprise for the |
22 | | purpose of resale by the
enterprise.
|
23 | | (2) Personal property purchased by a non-profit Illinois |
24 | | county fair
association for use in conducting, operating, or |
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1 | | promoting the county fair.
|
2 | | (3) Personal property purchased by a not-for-profit arts
|
3 | | or cultural
organization that establishes, by proof required |
4 | | by the Department by rule,
that it has received an exemption |
5 | | under Section 501(c)(3) of the Internal
Revenue Code and that |
6 | | is organized and operated primarily for the
presentation
or |
7 | | support of arts or cultural programming, activities, or |
8 | | services. These
organizations include, but are not limited to, |
9 | | music and dramatic arts
organizations such as symphony |
10 | | orchestras and theatrical groups, arts and
cultural service |
11 | | organizations, local arts councils, visual arts organizations,
|
12 | | and media arts organizations.
On and after July 1, 2001 (the |
13 | | effective date of Public Act 92-35), however, an entity |
14 | | otherwise eligible for this exemption shall not
make tax-free |
15 | | purchases unless it has an active identification number issued |
16 | | by
the Department.
|
17 | | (4) Legal tender, currency, medallions, or gold or silver |
18 | | coinage issued
by the State of Illinois, the government of the |
19 | | United States of America,
or the government of any foreign |
20 | | country, and bullion.
|
21 | | (5) Until July 1, 2003 and beginning again on September 1, |
22 | | 2004 through August 30, 2014, graphic arts machinery and |
23 | | equipment, including
repair and
replacement parts, both new |
24 | | and used, and including that manufactured on
special order or |
25 | | purchased for lease, certified by the purchaser to be used
|
26 | | primarily for graphic arts production.
Equipment includes |
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1 | | chemicals or
chemicals acting as catalysts but only if
the |
2 | | chemicals or chemicals acting as catalysts effect a direct and |
3 | | immediate
change upon a graphic arts product. Beginning on |
4 | | July 1, 2017, graphic arts machinery and equipment is included |
5 | | in the manufacturing and assembling machinery and equipment |
6 | | exemption under Section 2 of this Act.
|
7 | | (6) Personal property purchased from a teacher-sponsored |
8 | | student
organization affiliated with an elementary or |
9 | | secondary school located
in Illinois.
|
10 | | (7) Farm machinery and equipment, both new and used, |
11 | | including that
manufactured on special order, certified by the |
12 | | purchaser to be used
primarily for production agriculture or |
13 | | State or federal agricultural
programs, including individual |
14 | | replacement parts for the machinery and
equipment, including |
15 | | machinery and equipment purchased for lease,
and including |
16 | | implements of husbandry defined in Section 1-130 of
the |
17 | | Illinois Vehicle Code, farm machinery and agricultural |
18 | | chemical and
fertilizer spreaders, and nurse wagons required |
19 | | to be registered
under Section 3-809 of the Illinois Vehicle |
20 | | Code,
but
excluding other motor vehicles required to be |
21 | | registered under the Illinois
Vehicle Code.
Horticultural |
22 | | polyhouses or hoop houses used for propagating, growing, or
|
23 | | overwintering plants shall be considered farm machinery and |
24 | | equipment under
this item (7).
Agricultural chemical tender |
25 | | tanks and dry boxes shall include units sold
separately from a |
26 | | motor vehicle required to be licensed and units sold mounted
|
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1 | | on a motor vehicle required to be licensed if the selling price |
2 | | of the tender
is separately stated.
|
3 | | Farm machinery and equipment shall include precision |
4 | | farming equipment
that is
installed or purchased to be |
5 | | installed on farm machinery and equipment
including, but not |
6 | | limited to, tractors, harvesters, sprayers, planters,
seeders, |
7 | | or spreaders.
Precision farming equipment includes, but is not |
8 | | limited to,
soil testing sensors, computers, monitors, |
9 | | software, global positioning
and mapping systems, and other |
10 | | such equipment.
|
11 | | Farm machinery and equipment also includes computers, |
12 | | sensors, software, and
related equipment used primarily in the
|
13 | | computer-assisted operation of production agriculture |
14 | | facilities, equipment,
and activities such as, but
not limited |
15 | | to,
the collection, monitoring, and correlation of
animal and |
16 | | crop data for the purpose of
formulating animal diets and |
17 | | agricultural chemicals. |
18 | | Beginning on January 1, 2024, farm machinery and equipment |
19 | | also includes electrical power generation equipment used |
20 | | primarily for production agriculture. |
21 | | This item (7) is exempt
from the provisions of
Section |
22 | | 3-75.
|
23 | | (8) Until June 30, 2013, fuel and petroleum products sold |
24 | | to or used by an air common
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
flight |
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1 | | destined for or returning from a location or locations
outside |
2 | | the United States without regard to previous or subsequent |
3 | | domestic
stopovers.
|
4 | | Beginning July 1, 2013, fuel and petroleum products sold |
5 | | to or used by an air carrier, certified by the carrier to be |
6 | | used for consumption, shipment, or storage in the conduct of |
7 | | its business as an air common carrier, for a flight that (i) is |
8 | | engaged in foreign trade or is engaged in trade between the |
9 | | United States and any of its possessions and (ii) transports |
10 | | at least one individual or package for hire from the city of |
11 | | origination to the city of final destination on the same |
12 | | aircraft, without regard to a change in the flight number of |
13 | | that aircraft. |
14 | | (9) Proceeds of mandatory service charges separately |
15 | | stated on
customers' bills for the purchase and consumption of |
16 | | food and beverages
acquired as an incident to the purchase of a |
17 | | service from a serviceman, to
the extent that the proceeds of |
18 | | the service charge are in fact
turned over as tips or as a |
19 | | substitute for tips to the employees who
participate directly |
20 | | in preparing, serving, hosting or cleaning up the
food or |
21 | | beverage function with respect to which the service charge is |
22 | | imposed.
|
23 | | (10) Until July 1, 2003, oil field exploration, drilling, |
24 | | and production
equipment, including
(i) rigs and parts of |
25 | | rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) |
26 | | pipe and tubular goods, including casing and
drill strings, |
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1 | | (iii) pumps and pump-jack units, (iv) storage tanks and flow
|
2 | | lines, (v) any individual replacement part for oil field |
3 | | exploration,
drilling, and production equipment, and (vi) |
4 | | machinery and equipment purchased
for lease; but
excluding |
5 | | motor vehicles required to be registered under the Illinois
|
6 | | Vehicle Code.
|
7 | | (11) Proceeds from the sale of photoprocessing machinery |
8 | | and
equipment, including repair and replacement parts, both |
9 | | new and
used, including that manufactured on special order, |
10 | | certified by the
purchaser to be used primarily for |
11 | | photoprocessing, and including
photoprocessing machinery and |
12 | | equipment purchased for lease.
|
13 | | (12) Until July 1, 2028, coal and aggregate exploration, |
14 | | mining, off-highway hauling,
processing,
maintenance, and |
15 | | reclamation equipment, including
replacement parts and |
16 | | equipment, and including
equipment purchased for lease, but |
17 | | excluding motor vehicles required to be
registered under the |
18 | | Illinois Vehicle Code. The changes made to this Section by |
19 | | Public Act 97-767 apply on and after July 1, 2003, but no claim |
20 | | for credit or refund is allowed on or after August 16, 2013 |
21 | | (the effective date of Public Act 98-456)
for such taxes paid |
22 | | during the period beginning July 1, 2003 and ending on August |
23 | | 16, 2013 (the effective date of Public Act 98-456).
|
24 | | (13) Semen used for artificial insemination of livestock |
25 | | for direct
agricultural production.
|
26 | | (14) Horses, or interests in horses, registered with and |
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1 | | meeting the
requirements of any of the
Arabian Horse Club |
2 | | Registry of America, Appaloosa Horse Club, American Quarter
|
3 | | Horse Association, United States
Trotting Association, or |
4 | | Jockey Club, as appropriate, used for
purposes of breeding or |
5 | | racing for prizes. This item (14) is exempt from the |
6 | | provisions of Section 3-75, and the exemption provided for |
7 | | under this item (14) applies for all periods beginning May 30, |
8 | | 1995, but no claim for credit or refund is allowed on or after |
9 | | January 1, 2008 (the effective date of Public Act 95-88) for |
10 | | such taxes paid during the period beginning May 30, 2000 and |
11 | | ending on January 1, 2008 (the effective date of Public Act |
12 | | 95-88).
|
13 | | (15) Computers and communications equipment utilized for |
14 | | any
hospital
purpose
and equipment used in the diagnosis,
|
15 | | analysis, or treatment of hospital patients purchased by a |
16 | | lessor who leases
the
equipment, under a lease of one year or |
17 | | longer executed or in effect at the
time
the lessor would |
18 | | otherwise be subject to the tax imposed by this Act,
to a
|
19 | | hospital
that has been issued an active tax exemption |
20 | | identification number by the
Department under Section 1g of |
21 | | the Retailers' Occupation Tax Act.
If the
equipment is leased |
22 | | in a manner that does not qualify for
this exemption
or is used |
23 | | in any other non-exempt manner,
the lessor shall be liable for |
24 | | the
tax imposed under this Act or the Use Tax Act, as the case |
25 | | may
be, based on the fair market value of the property at the |
26 | | time the
non-qualifying use occurs. No lessor shall collect or |
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1 | | attempt to collect an
amount (however
designated) that |
2 | | purports to reimburse that lessor for the tax imposed by this
|
3 | | Act or the Use Tax Act, as the case may be, if the tax has not |
4 | | been
paid by the lessor. If a lessor improperly collects any |
5 | | such amount from the
lessee, the lessee shall have a legal |
6 | | right to claim a refund of that amount
from the lessor. If, |
7 | | however, that amount is not refunded to the lessee for
any |
8 | | reason, the lessor is liable to pay that amount to the |
9 | | Department.
|
10 | | (16) Personal property purchased by a lessor who leases |
11 | | the
property, under
a
lease of one year or longer executed or |
12 | | in effect at the time
the lessor would otherwise be subject to |
13 | | the tax imposed by this Act,
to a governmental body
that has |
14 | | been issued an active tax exemption identification number by |
15 | | the
Department under Section 1g of the Retailers' Occupation |
16 | | Tax Act.
If the
property is leased in a manner that does not |
17 | | qualify for
this exemption
or is used in any other non-exempt |
18 | | manner,
the lessor shall be liable for the
tax imposed under |
19 | | this Act or the Use Tax Act, as the case may
be, based on the |
20 | | fair market value of the property at the time the
|
21 | | non-qualifying use occurs. No lessor shall collect or attempt |
22 | | to collect an
amount (however
designated) that purports to |
23 | | reimburse that lessor for the tax imposed by this
Act or the |
24 | | Use Tax Act, as the case may be, if the tax has not been
paid |
25 | | by the lessor. If a lessor improperly collects any such amount |
26 | | from the
lessee, the lessee shall have a legal right to claim a |
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1 | | refund of that amount
from the lessor. If, however, that |
2 | | amount is not refunded to the lessee for
any reason, the lessor |
3 | | is liable to pay that amount to the Department.
|
4 | | (17) Beginning with taxable years ending on or after |
5 | | December
31,
1995
and
ending with taxable years ending on or |
6 | | before December 31, 2004,
personal property that is
donated |
7 | | for disaster relief to be used in a State or federally declared
|
8 | | disaster area in Illinois or bordering Illinois by a |
9 | | manufacturer or retailer
that is registered in this State to a |
10 | | corporation, society, association,
foundation, or institution |
11 | | that has been issued a sales tax exemption
identification |
12 | | number by the Department that assists victims of the disaster
|
13 | | who reside within the declared disaster area.
|
14 | | (18) Beginning with taxable years ending on or after |
15 | | December
31, 1995 and
ending with taxable years ending on or |
16 | | before December 31, 2004, personal
property that is used in |
17 | | the performance of infrastructure repairs in this
State, |
18 | | including but not limited to municipal roads and streets, |
19 | | access roads,
bridges, sidewalks, waste disposal systems, |
20 | | water and sewer line extensions,
water distribution and |
21 | | purification facilities, storm water drainage and
retention |
22 | | facilities, and sewage treatment facilities, resulting from a |
23 | | State
or federally declared disaster in Illinois or bordering |
24 | | Illinois when such
repairs are initiated on facilities located |
25 | | in the declared disaster area
within 6 months after the |
26 | | disaster.
|
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1 | | (19) Beginning July 1, 1999, game or game birds purchased |
2 | | at a "game
breeding
and hunting preserve area" as that term is
|
3 | | used in
the Wildlife Code. This paragraph is exempt from the |
4 | | provisions
of
Section 3-75.
|
5 | | (20) A motor vehicle, as that term is defined in Section |
6 | | 1-146
of the
Illinois Vehicle Code, that is donated to a |
7 | | corporation, limited liability
company, society, association, |
8 | | foundation, or institution that is determined by
the |
9 | | Department to be organized and operated exclusively for |
10 | | educational
purposes. For purposes of this exemption, "a |
11 | | corporation, limited liability
company, society, association, |
12 | | foundation, or institution organized and
operated
exclusively |
13 | | for educational purposes" means all tax-supported public |
14 | | schools,
private schools that offer systematic instruction in |
15 | | useful branches of
learning by methods common to public |
16 | | schools and that compare favorably in
their scope and |
17 | | intensity with the course of study presented in tax-supported
|
18 | | schools, and vocational or technical schools or institutes |
19 | | organized and
operated exclusively to provide a course of |
20 | | study of 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 | | (21) Beginning January 1, 2000, personal property, |
25 | | including
food,
purchased through fundraising
events for the |
26 | | benefit of
a public or private elementary or
secondary school, |
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1 | | a group of those schools, or one or more school
districts if |
2 | | the events are
sponsored by an entity recognized by the school |
3 | | district that consists
primarily of volunteers and includes
|
4 | | parents and teachers of the school children. This paragraph |
5 | | does not apply
to fundraising
events (i) for the benefit of |
6 | | private home instruction or (ii)
for which the fundraising |
7 | | entity purchases the personal property sold at
the events from |
8 | | another individual or entity that sold the property for the
|
9 | | purpose of resale by the fundraising entity and that
profits |
10 | | from the sale to the
fundraising entity. This paragraph is |
11 | | exempt
from the provisions
of Section 3-75.
|
12 | | (22) Beginning January 1, 2000
and through December 31, |
13 | | 2001, new or used automatic vending
machines that prepare and |
14 | | serve hot food and beverages, including coffee, soup,
and
|
15 | | other items, and replacement parts for these machines.
|
16 | | Beginning January 1,
2002 and through June 30, 2003, machines |
17 | | and parts for machines used in
commercial, coin-operated
|
18 | | amusement
and vending business if a use or occupation tax is |
19 | | paid on the gross receipts
derived from
the use of the |
20 | | commercial, coin-operated amusement and vending machines.
This
|
21 | | paragraph
is exempt from the provisions of Section 3-75.
|
22 | | (23) Beginning August 23, 2001 and through June 30, 2016, |
23 | | food for human consumption that is to be consumed off the
|
24 | | premises
where it is sold (other than alcoholic beverages, |
25 | | soft drinks, and food that
has been prepared for immediate |
26 | | consumption) and prescription and
nonprescription medicines, |
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1 | | drugs, medical appliances, and insulin, urine
testing |
2 | | materials, syringes, and needles used by diabetics, for human |
3 | | use, when
purchased for use by a person receiving medical |
4 | | assistance under Article V of
the Illinois Public Aid Code who |
5 | | resides in a licensed long-term care facility,
as defined in |
6 | | the Nursing Home Care Act, or in a licensed facility as defined |
7 | | in the ID/DD Community Care Act, the MC/DD Act, or the |
8 | | Specialized Mental Health Rehabilitation Act of 2013.
|
9 | | (24) Beginning on August 2, 2001 (the effective date of |
10 | | Public Act 92-227), computers and communications equipment
|
11 | | utilized for any hospital purpose and equipment used in the |
12 | | diagnosis,
analysis, or treatment of hospital patients |
13 | | purchased by a lessor who leases
the equipment, under a lease |
14 | | of one year or longer executed or in effect at the
time the |
15 | | lessor would otherwise be subject to the tax imposed by this |
16 | | Act, to a
hospital that has been issued an active tax exemption |
17 | | identification number by
the Department under Section 1g of |
18 | | the Retailers' Occupation Tax Act. If the
equipment is leased |
19 | | in a manner that does not qualify for this exemption or is
used |
20 | | in any other nonexempt manner, the lessor shall be liable for |
21 | | the
tax imposed under this Act or the Use Tax Act, as the case |
22 | | may be, based on the
fair market value of the property at the |
23 | | time the nonqualifying use occurs.
No lessor shall collect or |
24 | | attempt to collect an amount (however
designated) that |
25 | | purports to reimburse that lessor for the tax imposed by this
|
26 | | Act or the Use Tax Act, as the case may be, if the tax has not |
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1 | | been
paid by the lessor. If a lessor improperly collects any |
2 | | such amount from the
lessee, the lessee shall have a legal |
3 | | right to claim a refund of that amount
from the lessor. If, |
4 | | however, that amount is not refunded to the lessee for
any |
5 | | reason, the lessor is liable to pay that amount to the |
6 | | Department.
This paragraph is exempt from the provisions of |
7 | | Section 3-75.
|
8 | | (25) Beginning
on August 2, 2001 (the effective date of |
9 | | Public Act 92-227),
personal property purchased by a lessor
|
10 | | who leases the property, under a lease of one year or longer |
11 | | executed or in
effect at the time the lessor would otherwise be |
12 | | subject to the tax imposed by
this Act, to a governmental body |
13 | | that has been issued an active tax exemption
identification |
14 | | number by the Department under Section 1g of the Retailers'
|
15 | | Occupation Tax Act. If the property is leased in a manner that |
16 | | does not
qualify for this exemption or is used in any other |
17 | | nonexempt manner, the
lessor shall be liable for the tax |
18 | | imposed under this Act or the Use Tax Act,
as the case may be, |
19 | | based on the fair market value of the property at the time
the |
20 | | nonqualifying use occurs. No lessor shall collect or attempt |
21 | | to collect
an amount (however designated) that purports to |
22 | | reimburse that lessor for the
tax imposed by this Act or the |
23 | | Use Tax Act, as the case may be, if the tax has
not been paid |
24 | | by the lessor. If a lessor improperly collects any such amount
|
25 | | from the lessee, the lessee shall have a legal right to claim a |
26 | | refund of that
amount from the lessor. If, however, that |
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1 | | amount is not refunded to the lessee
for any reason, the lessor |
2 | | is liable to pay that amount to the Department.
This paragraph |
3 | | is exempt from the provisions of Section 3-75.
|
4 | | (26) Beginning January 1, 2008, tangible personal property |
5 | | used in the construction or maintenance of a community water |
6 | | supply, as defined under Section 3.145 of the Environmental |
7 | | Protection Act, that is operated by a not-for-profit |
8 | | corporation that holds a valid water supply permit issued |
9 | | under Title IV of the Environmental Protection Act. This |
10 | | paragraph is exempt from the provisions of Section 3-75.
|
11 | | (27) Beginning January 1, 2010 and continuing through |
12 | | December 31, 2024, materials, parts, equipment, components, |
13 | | and furnishings incorporated into or upon an aircraft as part |
14 | | of the modification, refurbishment, completion, replacement, |
15 | | repair, or maintenance of the aircraft. This exemption |
16 | | includes consumable supplies used in the modification, |
17 | | refurbishment, completion, replacement, repair, and |
18 | | maintenance of aircraft, but excludes any materials, parts, |
19 | | equipment, components, and consumable supplies used in the |
20 | | modification, replacement, repair, and maintenance of aircraft |
21 | | engines or power plants, whether such engines or power plants |
22 | | are installed or uninstalled upon any such aircraft. |
23 | | "Consumable supplies" include, but are not limited to, |
24 | | adhesive, tape, sandpaper, general purpose lubricants, |
25 | | cleaning solution, latex gloves, and protective films. This |
26 | | exemption applies only to the use of qualifying tangible |
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1 | | personal property transferred incident to the modification, |
2 | | refurbishment, completion, replacement, repair, or maintenance |
3 | | of aircraft by persons who (i) hold an Air Agency Certificate |
4 | | and are empowered to operate an approved repair station by the |
5 | | Federal Aviation Administration, (ii) have a Class IV Rating, |
6 | | and (iii) conduct operations in accordance with Part 145 of |
7 | | the Federal Aviation Regulations. The exemption does not |
8 | | include aircraft operated by a commercial air carrier |
9 | | providing scheduled passenger air service pursuant to |
10 | | authority issued under Part 121 or Part 129 of the Federal |
11 | | Aviation Regulations. The changes made to this paragraph (27) |
12 | | by Public Act 98-534 are declarative of existing law. It is the |
13 | | intent of the General Assembly that the exemption under this |
14 | | paragraph (27) applies continuously from January 1, 2010 |
15 | | through December 31, 2024; however, no claim for credit or |
16 | | refund is allowed for taxes paid as a result of the |
17 | | disallowance of this exemption on or after January 1, 2015 and |
18 | | prior to February 5, 2020 ( the effective date of Public Act |
19 | | 101-629) this amendatory Act of the 101st General Assembly . |
20 | | (28) Tangible personal property purchased by a |
21 | | public-facilities corporation, as described in Section |
22 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
23 | | constructing or furnishing a municipal convention hall, but |
24 | | only if the legal title to the municipal convention hall is |
25 | | transferred to the municipality without any further |
26 | | consideration by or on behalf of the municipality at the time |
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1 | | of the completion of the municipal convention hall or upon the |
2 | | retirement or redemption of any bonds or other debt |
3 | | instruments issued by the public-facilities corporation in |
4 | | connection with the development of the municipal convention |
5 | | hall. This exemption includes existing public-facilities |
6 | | corporations as provided in Section 11-65-25 of the Illinois |
7 | | Municipal Code. This paragraph is exempt from the provisions |
8 | | of Section 3-75. |
9 | | (29) Beginning January 1, 2017 and through December 31, |
10 | | 2026, menstrual pads, tampons, and menstrual cups. |
11 | | (30) Tangible personal property transferred to a purchaser |
12 | | who is exempt from the tax imposed by this Act by operation of |
13 | | federal law. This paragraph is exempt from the provisions of |
14 | | Section 3-75. |
15 | | (31) Qualified tangible personal property used in the |
16 | | construction or operation of a data center that has been |
17 | | granted a certificate of exemption by the Department of |
18 | | Commerce and Economic Opportunity, whether that tangible |
19 | | personal property is purchased by the owner, operator, or |
20 | | tenant of the data center or by a contractor or subcontractor |
21 | | of the owner, operator, or tenant. Data centers that would |
22 | | have qualified for a certificate of exemption prior to January |
23 | | 1, 2020 had Public Act 101-31 this amendatory Act of the 101st |
24 | | General Assembly been in effect, may apply for and obtain an |
25 | | exemption for subsequent purchases of computer equipment or |
26 | | enabling software purchased or leased to upgrade, supplement, |
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1 | | or replace computer equipment or enabling software purchased |
2 | | or leased in the original investment that would have |
3 | | qualified. |
4 | | The Department of Commerce and Economic Opportunity shall |
5 | | grant a certificate of exemption under this item (31) to |
6 | | qualified data centers as defined by Section 605-1025 of the |
7 | | Department of Commerce and Economic Opportunity Law of the
|
8 | | Civil Administrative Code of Illinois. |
9 | | For the purposes of this item (31): |
10 | | "Data center" means a building or a series of |
11 | | buildings rehabilitated or constructed to house working |
12 | | servers in one physical location or multiple sites within |
13 | | the State of Illinois. |
14 | | "Qualified tangible personal property" means: |
15 | | electrical systems and equipment; climate control and |
16 | | chilling equipment and systems; mechanical systems and |
17 | | equipment; monitoring and secure systems; emergency |
18 | | generators; hardware; computers; servers; data storage |
19 | | devices; network connectivity equipment; racks; cabinets; |
20 | | telecommunications cabling infrastructure; raised floor |
21 | | systems; peripheral components or systems; software; |
22 | | mechanical, electrical, or plumbing systems; battery |
23 | | systems; cooling systems and towers; temperature control |
24 | | systems; other cabling; and other data center |
25 | | infrastructure equipment and systems necessary to operate |
26 | | qualified tangible personal property, including fixtures; |
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1 | | and component parts of any of the foregoing, including |
2 | | installation, maintenance, repair, refurbishment, and |
3 | | replacement of qualified tangible personal property to |
4 | | generate, transform, transmit, distribute, or manage |
5 | | electricity necessary to operate qualified tangible |
6 | | personal property; and all other tangible personal |
7 | | property that is essential to the operations of a computer |
8 | | data center. The term "qualified tangible personal |
9 | | property" also includes building materials physically |
10 | | incorporated in to the qualifying data center. To document |
11 | | the exemption allowed under this Section, the retailer |
12 | | must obtain from the purchaser a copy of the certificate |
13 | | of eligibility issued by the Department of Commerce and |
14 | | Economic Opportunity. |
15 | | This item (31) is exempt from the provisions of Section |
16 | | 3-75. |
17 | | (32) Beginning July 1, 2022, breast pumps, breast pump |
18 | | collection and storage supplies, and breast pump kits. This |
19 | | item (32) is exempt from the provisions of Section 3-75. As |
20 | | used in this item (32): |
21 | | "Breast pump" means an electrically controlled or |
22 | | manually controlled pump device designed or marketed to be |
23 | | used to express milk from a human breast during lactation, |
24 | | including the pump device and any battery, AC adapter, or |
25 | | other power supply unit that is used to power the pump |
26 | | device and is packaged and sold with the pump device at the |
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1 | | time of sale. |
2 | | "Breast pump collection and storage supplies" means |
3 | | items of tangible personal property designed or marketed |
4 | | to be used in conjunction with a breast pump to collect |
5 | | milk expressed from a human breast and to store collected |
6 | | milk until it is ready for consumption. |
7 | | "Breast pump collection and storage supplies" |
8 | | includes, but is not limited to: breast shields and breast |
9 | | shield connectors; breast pump tubes and tubing adapters; |
10 | | breast pump valves and membranes; backflow protectors and |
11 | | backflow protector adaptors; bottles and bottle caps |
12 | | specific to the operation of the breast pump; and breast |
13 | | milk storage bags. |
14 | | "Breast pump collection and storage supplies" does not |
15 | | include: (1) bottles and bottle caps not specific to the |
16 | | operation of the breast pump; (2) breast pump travel bags |
17 | | and other similar carrying accessories, including ice |
18 | | packs, labels, and other similar products; (3) breast pump |
19 | | cleaning supplies; (4) nursing bras, bra pads, breast |
20 | | shells, and other similar products; and (5) creams, |
21 | | ointments, and other similar products that relieve |
22 | | breastfeeding-related symptoms or conditions of the |
23 | | breasts or nipples, unless sold as part of a breast pump |
24 | | kit that is pre-packaged by the breast pump manufacturer |
25 | | or distributor. |
26 | | "Breast pump kit" means a kit that: (1) contains no |
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1 | | more than a breast pump, breast pump collection and |
2 | | storage supplies, a rechargeable battery for operating the |
3 | | breast pump, a breastmilk cooler, bottle stands, ice |
4 | | packs, and a breast pump carrying case; and (2) is |
5 | | pre-packaged as a breast pump kit by the breast pump |
6 | | manufacturer or distributor. |
7 | | (33) (32) Tangible personal property sold by or on behalf |
8 | | of the State Treasurer pursuant to the Revised Uniform |
9 | | Unclaimed Property Act. This item (33) (32) is exempt from the |
10 | | provisions of Section 3-75. |
11 | | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; |
12 | | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article |
13 | | 70, Section 70-10, eff. 4-19-22; 102-700, Article 75, Section |
14 | | 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-3-22.)
|
15 | | Section 15-15. The Service Occupation Tax Act is amended |
16 | | by changing Section 3-5 as follows:
|
17 | | (35 ILCS 115/3-5)
|
18 | | Sec. 3-5. Exemptions. The following tangible personal |
19 | | property is
exempt from the tax imposed by this Act:
|
20 | | (1) Personal property sold by a corporation, society, |
21 | | association,
foundation, institution, or organization, other |
22 | | than a limited liability
company, that is organized and |
23 | | operated as a not-for-profit service enterprise
for the |
24 | | benefit of persons 65 years of age or older if the personal |
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1 | | property
was not purchased by the enterprise for the purpose |
2 | | of resale by the
enterprise.
|
3 | | (2) Personal property purchased by a not-for-profit |
4 | | Illinois county fair
association for use in conducting, |
5 | | operating, or promoting the county fair.
|
6 | | (3) Personal property purchased by any not-for-profit
arts |
7 | | or cultural organization that establishes, by proof required |
8 | | by the
Department by
rule, that it has received an exemption |
9 | | under Section 501(c)(3) of the
Internal Revenue Code and that |
10 | | is organized and operated primarily for the
presentation
or |
11 | | support of arts or cultural programming, activities, or |
12 | | services. These
organizations include, but are not limited to, |
13 | | music and dramatic arts
organizations such as symphony |
14 | | orchestras and theatrical groups, arts and
cultural service |
15 | | organizations, local arts councils, visual arts organizations,
|
16 | | and media arts organizations.
On and after July 1, 2001 (the |
17 | | effective date of Public Act 92-35), however, an entity |
18 | | otherwise eligible for this exemption shall not
make tax-free |
19 | | purchases unless it has an active identification number issued |
20 | | by
the Department.
|
21 | | (4) Legal tender, currency, medallions, or gold or silver |
22 | | coinage
issued by the State of Illinois, the government of the |
23 | | United States of
America, or the government of any foreign |
24 | | country, and bullion.
|
25 | | (5) Until July 1, 2003 and beginning again on September 1, |
26 | | 2004 through August 30, 2014, graphic arts machinery and |
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1 | | equipment, including
repair and
replacement parts, both new |
2 | | and used, and including that manufactured on
special order or |
3 | | purchased for lease, certified by the purchaser to be used
|
4 | | primarily for graphic arts production.
Equipment includes |
5 | | chemicals or chemicals acting as catalysts but only if
the
|
6 | | chemicals or chemicals acting as catalysts effect a direct and |
7 | | immediate change
upon a graphic arts product. Beginning on |
8 | | July 1, 2017, graphic arts machinery and equipment is included |
9 | | in the manufacturing and assembling machinery and equipment |
10 | | exemption under Section 2 of this Act.
|
11 | | (6) Personal property sold by a teacher-sponsored student |
12 | | organization
affiliated with an elementary or secondary school |
13 | | located in Illinois.
|
14 | | (7) Farm machinery and equipment, both new and used, |
15 | | including that
manufactured on special order, certified by the |
16 | | purchaser to be used
primarily for production agriculture or |
17 | | State or federal agricultural
programs, including individual |
18 | | replacement parts for the machinery and
equipment, including |
19 | | machinery and equipment purchased for lease,
and including |
20 | | implements of husbandry defined in Section 1-130 of
the |
21 | | Illinois Vehicle Code, farm machinery and agricultural |
22 | | chemical and
fertilizer spreaders, and nurse wagons required |
23 | | to be registered
under Section 3-809 of the Illinois Vehicle |
24 | | Code,
but
excluding other motor vehicles required to be |
25 | | registered under the Illinois
Vehicle
Code.
Horticultural |
26 | | polyhouses or hoop houses used for propagating, growing, or
|
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1 | | overwintering plants shall be considered farm machinery and |
2 | | equipment under
this item (7).
Agricultural chemical tender |
3 | | tanks and dry boxes shall include units sold
separately from a |
4 | | motor vehicle required to be licensed and units sold mounted
|
5 | | on a motor vehicle required to be licensed if the selling price |
6 | | of the tender
is separately stated.
|
7 | | Farm machinery and equipment shall include precision |
8 | | farming equipment
that is
installed or purchased to be |
9 | | installed on farm machinery and equipment
including, but not |
10 | | limited to, tractors, harvesters, sprayers, planters,
seeders, |
11 | | or spreaders.
Precision farming equipment includes, but is not |
12 | | limited to,
soil testing sensors, computers, monitors, |
13 | | software, global positioning
and mapping systems, and other |
14 | | such equipment.
|
15 | | Farm machinery and equipment also includes computers, |
16 | | sensors, software, and
related equipment used primarily in the
|
17 | | computer-assisted operation of production agriculture |
18 | | facilities, equipment,
and activities such as, but
not limited |
19 | | to,
the collection, monitoring, and correlation of
animal and |
20 | | crop data for the purpose of
formulating animal diets and |
21 | | agricultural chemicals. |
22 | | Beginning on January 1, 2024, farm machinery and equipment |
23 | | also includes electrical power generation equipment used |
24 | | primarily for production agriculture. |
25 | | This item (7) is exempt
from the provisions of
Section |
26 | | 3-55.
|
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1 | | (8) Until June 30, 2013, fuel and petroleum products sold |
2 | | to or used by an air common
carrier, certified by the carrier |
3 | | to be used for consumption, shipment,
or storage in the |
4 | | conduct of its business as an air common carrier, for
a flight |
5 | | destined for or returning from a location or locations
outside |
6 | | the United States without regard to previous or subsequent |
7 | | domestic
stopovers.
|
8 | | Beginning July 1, 2013, fuel and petroleum products sold |
9 | | to or used by an air carrier, certified by the carrier to be |
10 | | used for consumption, shipment, or storage in the conduct of |
11 | | its business as an air common carrier, for a flight that (i) is |
12 | | engaged in foreign trade or is engaged in trade between the |
13 | | United States and any of its possessions and (ii) transports |
14 | | at least one individual or package for hire from the city of |
15 | | origination to the city of final destination on the same |
16 | | aircraft, without regard to a change in the flight number of |
17 | | that aircraft. |
18 | | (9) Proceeds of mandatory service charges separately
|
19 | | stated on customers' bills for the purchase and consumption of |
20 | | food and
beverages, to the extent that the proceeds of the |
21 | | service charge are in fact
turned over as tips or as a |
22 | | substitute for tips to the employees who
participate directly |
23 | | in preparing, serving, hosting or cleaning up the
food or |
24 | | beverage function with respect to which the service charge is |
25 | | imposed.
|
26 | | (10) Until July 1, 2003, oil field exploration, drilling, |
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1 | | and production
equipment,
including (i) rigs and parts of |
2 | | rigs, rotary rigs, cable tool
rigs, and workover rigs, (ii) |
3 | | pipe and tubular goods, including casing and
drill strings, |
4 | | (iii) pumps and pump-jack units, (iv) storage tanks and flow
|
5 | | lines, (v) any individual replacement part for oil field |
6 | | exploration,
drilling, and production equipment, and (vi) |
7 | | machinery and equipment purchased
for lease; but
excluding |
8 | | motor vehicles required to be registered under the Illinois
|
9 | | Vehicle Code.
|
10 | | (11) Photoprocessing machinery and equipment, including |
11 | | repair and
replacement parts, both new and used, including |
12 | | that manufactured on
special order, certified by the purchaser |
13 | | to be used primarily for
photoprocessing, and including |
14 | | photoprocessing machinery and equipment
purchased for lease.
|
15 | | (12) Until July 1, 2028, coal and aggregate exploration, |
16 | | mining, off-highway hauling,
processing,
maintenance, and |
17 | | reclamation equipment, including
replacement parts and |
18 | | equipment, and including
equipment
purchased for lease, but |
19 | | excluding motor vehicles required to be registered
under the |
20 | | Illinois Vehicle Code. The changes made to this Section by |
21 | | Public Act 97-767 apply on and after July 1, 2003, but no claim |
22 | | for credit or refund is allowed on or after August 16, 2013 |
23 | | (the effective date of Public Act 98-456)
for such taxes paid |
24 | | during the period beginning July 1, 2003 and ending on August |
25 | | 16, 2013 (the effective date of Public Act 98-456).
|
26 | | (13) Beginning January 1, 1992 and through June 30, 2016, |
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1 | | food for human consumption that is to be consumed off the |
2 | | premises
where it is sold (other than alcoholic beverages, |
3 | | soft drinks and food that
has been prepared for immediate |
4 | | consumption) and prescription and
non-prescription medicines, |
5 | | drugs, medical appliances, and insulin, urine
testing |
6 | | materials, syringes, and needles used by diabetics, for human |
7 | | use,
when purchased for use by a person receiving medical |
8 | | assistance under
Article V of the Illinois Public Aid Code who |
9 | | resides in a licensed
long-term care facility, as defined in |
10 | | the Nursing Home Care Act, or in a licensed facility as defined |
11 | | in the ID/DD Community Care Act, the MC/DD Act, or the |
12 | | Specialized Mental Health Rehabilitation Act of 2013.
|
13 | | (14) Semen used for artificial insemination of livestock |
14 | | for direct
agricultural production.
|
15 | | (15) Horses, or interests in horses, registered with and |
16 | | meeting the
requirements of any of the
Arabian Horse Club |
17 | | Registry of America, Appaloosa Horse Club, American Quarter
|
18 | | Horse Association, United States
Trotting Association, or |
19 | | Jockey Club, as appropriate, used for
purposes of breeding or |
20 | | racing for prizes. This item (15) is exempt from the |
21 | | provisions of Section 3-55, and the exemption provided for |
22 | | under this item (15) applies for all periods beginning May 30, |
23 | | 1995, but no claim for credit or refund is allowed on or after |
24 | | January 1, 2008 (the effective date of Public Act 95-88)
for |
25 | | such taxes paid during the period beginning May 30, 2000 and |
26 | | ending on January 1, 2008 (the effective date of Public Act |
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1 | | 95-88).
|
2 | | (16) Computers and communications equipment utilized for |
3 | | any
hospital
purpose
and equipment used in the diagnosis,
|
4 | | analysis, or treatment of hospital patients sold to a lessor |
5 | | who leases the
equipment, under a lease of one year or longer |
6 | | executed or in effect at the
time of the purchase, to a
|
7 | | hospital
that has been issued an active tax exemption |
8 | | identification number by the
Department under Section 1g of |
9 | | the Retailers' Occupation Tax Act.
|
10 | | (17) Personal property sold to a lessor who leases the
|
11 | | property, under a
lease of one year or longer executed or in |
12 | | effect at the time of the purchase,
to a governmental body
that |
13 | | has been issued an active tax exemption identification number |
14 | | by the
Department under Section 1g of the Retailers' |
15 | | Occupation Tax Act.
|
16 | | (18) Beginning with taxable years ending on or after |
17 | | December
31, 1995
and
ending with taxable years ending on or |
18 | | before December 31, 2004,
personal property that is
donated |
19 | | for disaster relief to be used in a State or federally declared
|
20 | | disaster area in Illinois or bordering Illinois by a |
21 | | manufacturer or retailer
that is registered in this State to a |
22 | | corporation, society, association,
foundation, or institution |
23 | | that has been issued a sales tax exemption
identification |
24 | | number by the Department that assists victims of the disaster
|
25 | | who reside within the declared disaster area.
|
26 | | (19) Beginning with taxable years ending on or after |
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1 | | December
31, 1995 and
ending with taxable years ending on or |
2 | | before December 31, 2004, personal
property that is used in |
3 | | the performance of infrastructure repairs in this
State, |
4 | | including but not limited to municipal roads and streets, |
5 | | access roads,
bridges, sidewalks, waste disposal systems, |
6 | | water and sewer line extensions,
water distribution and |
7 | | purification facilities, storm water drainage and
retention |
8 | | facilities, and sewage treatment facilities, resulting from a |
9 | | State
or federally declared disaster in Illinois or bordering |
10 | | Illinois when such
repairs are initiated on facilities located |
11 | | in the declared disaster area
within 6 months after the |
12 | | disaster.
|
13 | | (20) Beginning July 1, 1999, game or game birds sold at a |
14 | | "game breeding
and
hunting preserve area" as that term is used
|
15 | | in the
Wildlife Code. This paragraph is exempt from the |
16 | | provisions
of
Section 3-55.
|
17 | | (21) A motor vehicle, as that term is defined in Section |
18 | | 1-146
of the
Illinois Vehicle Code, that is donated to a |
19 | | corporation, limited liability
company, society, association, |
20 | | foundation, or institution that is determined by
the |
21 | | Department to be organized and operated exclusively for |
22 | | educational
purposes. For purposes of this exemption, "a |
23 | | corporation, limited liability
company, society, association, |
24 | | foundation, or institution organized and
operated
exclusively |
25 | | for educational purposes" means all tax-supported public |
26 | | schools,
private schools that offer systematic instruction in |
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1 | | useful branches of
learning by methods common to public |
2 | | schools and that compare favorably in
their scope and |
3 | | intensity with the course of study presented in tax-supported
|
4 | | schools, and vocational or technical schools or institutes |
5 | | organized and
operated exclusively to provide a course of |
6 | | study of not less than 6 weeks
duration and designed to prepare |
7 | | individuals to follow a trade or to pursue a
manual, |
8 | | technical, mechanical, industrial, business, or commercial
|
9 | | occupation.
|
10 | | (22) Beginning January 1, 2000, personal property, |
11 | | including
food,
purchased through fundraising
events for the |
12 | | benefit of
a public or private elementary or
secondary school, |
13 | | a group of those schools, or one or more school
districts if |
14 | | the events are
sponsored by an entity recognized by the school |
15 | | district that consists
primarily of volunteers and includes
|
16 | | parents and teachers of the school children. This paragraph |
17 | | does not apply
to fundraising
events (i) for the benefit of |
18 | | private home instruction or (ii)
for which the fundraising |
19 | | entity purchases the personal property sold at
the events from |
20 | | another individual or entity that sold the property for the
|
21 | | purpose of resale by the fundraising entity and that
profits |
22 | | from the sale to the
fundraising entity. This paragraph is |
23 | | exempt
from the provisions
of Section 3-55.
|
24 | | (23) Beginning January 1, 2000
and through December 31, |
25 | | 2001, new or used automatic vending
machines that prepare and |
26 | | serve hot food and beverages, including coffee, soup,
and
|
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1 | | other items, and replacement parts for these machines.
|
2 | | Beginning January 1,
2002 and through June 30, 2003, machines |
3 | | and parts for
machines used in commercial, coin-operated |
4 | | amusement
and vending business if a use or occupation tax is |
5 | | paid on the gross receipts
derived from
the use of the |
6 | | commercial, coin-operated amusement and vending machines.
This |
7 | | paragraph is exempt from the provisions of Section 3-55.
|
8 | | (24) Beginning
on August 2, 2001 (the effective date of |
9 | | Public Act 92-227),
computers and communications equipment
|
10 | | utilized for any hospital purpose and equipment used in the |
11 | | diagnosis,
analysis, or treatment of hospital patients sold to |
12 | | a lessor who leases the
equipment, under a lease of one year or |
13 | | longer executed or in effect at the
time of the purchase, to a |
14 | | hospital that has been issued an active tax
exemption |
15 | | identification number by the Department under Section 1g of |
16 | | the
Retailers' Occupation Tax Act. This paragraph is exempt |
17 | | from the provisions of
Section 3-55.
|
18 | | (25) Beginning
on August 2, 2001 (the effective date of |
19 | | Public Act 92-227),
personal property sold to a lessor who
|
20 | | leases the property, under a lease of one year or longer |
21 | | executed or in effect
at the time of the purchase, to a |
22 | | governmental body that has been issued an
active tax exemption |
23 | | identification number by the Department under Section 1g
of |
24 | | the Retailers' Occupation Tax Act. This paragraph is exempt |
25 | | from the
provisions of Section 3-55.
|
26 | | (26) Beginning on January 1, 2002 and through June 30, |
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1 | | 2016, tangible personal property
purchased
from an Illinois |
2 | | retailer by a taxpayer engaged in centralized purchasing
|
3 | | activities in Illinois who will, upon receipt of the property |
4 | | in Illinois,
temporarily store the property in Illinois (i) |
5 | | for the purpose of subsequently
transporting it outside this |
6 | | State for use or consumption thereafter solely
outside this |
7 | | State or (ii) for the purpose of being processed, fabricated, |
8 | | or
manufactured into, attached to, or incorporated into other |
9 | | tangible personal
property to be transported outside this |
10 | | State and thereafter used or consumed
solely outside this |
11 | | State. The Director of Revenue shall, pursuant to rules
|
12 | | adopted in accordance with the Illinois Administrative |
13 | | Procedure Act, issue a
permit to any taxpayer in good standing |
14 | | with the Department who is eligible for
the exemption under |
15 | | this paragraph (26). The permit issued under
this paragraph |
16 | | (26) shall authorize the holder, to the extent and
in the |
17 | | manner specified in the rules adopted under this Act, to |
18 | | purchase
tangible personal property from a retailer exempt |
19 | | from the taxes imposed by
this Act. Taxpayers shall maintain |
20 | | all necessary books and records to
substantiate the use and |
21 | | consumption of all such tangible personal property
outside of |
22 | | the State of Illinois.
|
23 | | (27) Beginning January 1, 2008, tangible personal property |
24 | | used in the construction or maintenance of a community water |
25 | | supply, as defined under Section 3.145 of the Environmental |
26 | | Protection Act, that is operated by a not-for-profit |
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1 | | corporation that holds a valid water supply permit issued |
2 | | under Title IV of the Environmental Protection Act. This |
3 | | paragraph is exempt from the provisions of Section 3-55.
|
4 | | (28) Tangible personal property sold to a |
5 | | public-facilities corporation, as described in Section |
6 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
7 | | constructing or furnishing a municipal convention hall, but |
8 | | only if the legal title to the municipal convention hall is |
9 | | transferred to the municipality without any further |
10 | | consideration by or on behalf of the municipality at the time |
11 | | of the completion of the municipal convention hall or upon the |
12 | | retirement or redemption of any bonds or other debt |
13 | | instruments issued by the public-facilities corporation in |
14 | | connection with the development of the municipal convention |
15 | | hall. This exemption includes existing public-facilities |
16 | | corporations as provided in Section 11-65-25 of the Illinois |
17 | | Municipal Code. This paragraph is exempt from the provisions |
18 | | of Section 3-55. |
19 | | (29) Beginning January 1, 2010 and continuing through |
20 | | December 31, 2024, materials, parts, equipment, components, |
21 | | and furnishings incorporated into or upon an aircraft as part |
22 | | of the modification, refurbishment, completion, replacement, |
23 | | repair, or maintenance of the aircraft. This exemption |
24 | | includes consumable supplies used in the modification, |
25 | | refurbishment, completion, replacement, repair, and |
26 | | maintenance of aircraft, but excludes any materials, parts, |
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1 | | equipment, components, and consumable supplies used in the |
2 | | modification, replacement, repair, and maintenance of aircraft |
3 | | engines or power plants, whether such engines or power plants |
4 | | are installed or uninstalled upon any such aircraft. |
5 | | "Consumable supplies" include, but are not limited to, |
6 | | adhesive, tape, sandpaper, general purpose lubricants, |
7 | | cleaning solution, latex gloves, and protective films. This |
8 | | exemption applies only to the transfer of qualifying tangible |
9 | | personal property incident to the modification, refurbishment, |
10 | | completion, replacement, repair, or maintenance of an aircraft |
11 | | by persons who (i) hold an Air Agency Certificate and are |
12 | | empowered to operate an approved repair station by the Federal |
13 | | Aviation Administration, (ii) have a Class IV Rating, and |
14 | | (iii) conduct operations in accordance with Part 145 of the |
15 | | Federal Aviation Regulations. The exemption does not include |
16 | | aircraft operated by a commercial air carrier providing |
17 | | scheduled passenger air service pursuant to authority issued |
18 | | under Part 121 or Part 129 of the Federal Aviation |
19 | | Regulations. The changes made to this paragraph (29) by Public |
20 | | Act 98-534 are declarative of existing law. It is the intent of |
21 | | the General Assembly that the exemption under this paragraph |
22 | | (29) applies continuously from January 1, 2010 through |
23 | | December 31, 2024; however, no claim for credit or refund is |
24 | | allowed for taxes paid as a result of the disallowance of this |
25 | | exemption on or after January 1, 2015 and prior to February 5, |
26 | | 2020 ( the effective date of Public Act 101-629) this |
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1 | | amendatory Act of the 101st General Assembly . |
2 | | (30) Beginning January 1, 2017 and through December 31, |
3 | | 2026, menstrual pads, tampons, and menstrual cups. |
4 | | (31) Tangible personal property transferred to a purchaser |
5 | | who is exempt from tax by operation of federal law. This |
6 | | paragraph is exempt from the provisions of Section 3-55. |
7 | | (32) Qualified tangible personal property used in the |
8 | | construction or operation of a data center that has been |
9 | | granted a certificate of exemption by the Department of |
10 | | Commerce and Economic Opportunity, whether that tangible |
11 | | personal property is purchased by the owner, operator, or |
12 | | tenant of the data center or by a contractor or subcontractor |
13 | | of the owner, operator, or tenant. Data centers that would |
14 | | have qualified for a certificate of exemption prior to January |
15 | | 1, 2020 had Public Act 101-31 this amendatory Act of the 101st |
16 | | General Assembly been in effect, may apply for and obtain an |
17 | | exemption for subsequent purchases of computer equipment or |
18 | | enabling software purchased or leased to upgrade, supplement, |
19 | | or replace computer equipment or enabling software purchased |
20 | | or leased in the original investment that would have |
21 | | qualified. |
22 | | The Department of Commerce and Economic Opportunity shall |
23 | | grant a certificate of exemption under this item (32) to |
24 | | qualified data centers as defined by Section 605-1025 of the |
25 | | Department of Commerce and Economic Opportunity Law of the
|
26 | | Civil Administrative Code of Illinois. |
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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 |
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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 |
8 | | 3-55. |
9 | | (33) Beginning July 1, 2022, breast pumps, breast pump |
10 | | collection and storage supplies, and breast pump kits. This |
11 | | item (33) is exempt from the provisions of Section 3-55. As |
12 | | used 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 |
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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 | | (34) (33) Tangible personal property sold by or on behalf |
26 | | of the State Treasurer pursuant to the Revised Uniform |
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1 | | Unclaimed Property Act. This item (34) (33) is exempt from the |
2 | | provisions of Section 3-55. |
3 | | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; |
4 | | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-700, Article |
5 | | 70, Section 70-15, eff. 4-19-22; 102-700, Article 75, Section |
6 | | 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; revised 8-9-22.)
|
7 | | Section 15-20. The Retailers' Occupation Tax Act is |
8 | | amended by changing Section 2-5 as follows:
|
9 | | (35 ILCS 120/2-5)
|
10 | | Sec. 2-5. Exemptions. Gross receipts from proceeds from |
11 | | the sale of
the following tangible personal property are |
12 | | exempt from the tax imposed
by this Act:
|
13 | | (1) Farm chemicals.
|
14 | | (2) Farm machinery and equipment, both new and used, |
15 | | including that
manufactured on special order, certified by |
16 | | the purchaser to be used
primarily for production |
17 | | agriculture or State or federal agricultural
programs, |
18 | | including individual replacement parts for the machinery |
19 | | and
equipment, including machinery and equipment purchased |
20 | | for lease,
and including implements of husbandry defined |
21 | | in Section 1-130 of
the Illinois Vehicle Code, farm |
22 | | machinery and agricultural chemical and
fertilizer |
23 | | spreaders, and nurse wagons required to be registered
|
24 | | under Section 3-809 of the Illinois Vehicle Code,
but
|
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1 | | excluding other motor vehicles required to be registered |
2 | | under the Illinois
Vehicle Code.
Horticultural polyhouses |
3 | | or hoop houses used for propagating, growing, or
|
4 | | overwintering plants shall be considered farm machinery |
5 | | and equipment under
this item (2).
Agricultural chemical |
6 | | tender tanks and dry boxes shall include units sold
|
7 | | separately from a motor vehicle required to be licensed |
8 | | and units sold mounted
on a motor vehicle required to be |
9 | | licensed, if the selling price of the tender
is separately |
10 | | stated.
|
11 | | Farm machinery and equipment shall include precision |
12 | | farming equipment
that is
installed or purchased to be |
13 | | installed on farm machinery and equipment
including, but |
14 | | not limited to, tractors, harvesters, sprayers, planters,
|
15 | | seeders, or spreaders.
Precision farming equipment |
16 | | includes, but is not limited to,
soil testing sensors, |
17 | | computers, monitors, software, global positioning
and |
18 | | mapping systems, and other such equipment.
|
19 | | Farm machinery and equipment also includes computers, |
20 | | sensors, software, and
related equipment used primarily in |
21 | | the
computer-assisted operation of production agriculture |
22 | | facilities, equipment,
and activities such as, but
not |
23 | | limited to,
the collection, monitoring, and correlation of
|
24 | | animal and crop data for the purpose of
formulating animal |
25 | | diets and agricultural chemicals. |
26 | | Beginning on January 1, 2024, farm machinery and |
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1 | | equipment also includes electrical power generation |
2 | | equipment used primarily for production agriculture. |
3 | | This item (2) is exempt
from the provisions of
Section |
4 | | 2-70.
|
5 | | (3) Until July 1, 2003, distillation machinery and |
6 | | equipment, sold as a
unit or kit,
assembled or installed |
7 | | by the retailer, certified by the user to be used
only for |
8 | | the production of ethyl alcohol that will be used for |
9 | | consumption
as motor fuel or as a component of motor fuel |
10 | | for the personal use of the
user, and not subject to sale |
11 | | or resale.
|
12 | | (4) Until July 1, 2003 and beginning again September |
13 | | 1, 2004 through August 30, 2014, graphic arts machinery |
14 | | and equipment, including
repair and
replacement parts, |
15 | | both new and used, and including that manufactured on
|
16 | | special order or purchased for lease, certified by the |
17 | | purchaser to be used
primarily for graphic arts |
18 | | production.
Equipment includes chemicals or
chemicals |
19 | | acting as catalysts but only if
the chemicals or chemicals |
20 | | acting as catalysts effect a direct and immediate
change |
21 | | upon a
graphic arts product. Beginning on July 1, 2017, |
22 | | graphic arts machinery and equipment is included in the |
23 | | manufacturing and assembling machinery and equipment |
24 | | exemption under paragraph (14).
|
25 | | (5) A motor vehicle that is used for automobile |
26 | | renting, as defined in the Automobile Renting Occupation |
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1 | | and Use Tax Act. This paragraph is exempt from
the |
2 | | provisions of Section 2-70.
|
3 | | (6) Personal property sold by a teacher-sponsored |
4 | | student organization
affiliated with an elementary or |
5 | | secondary school located in Illinois.
|
6 | | (7) Until July 1, 2003, proceeds of that portion of |
7 | | the selling price of
a passenger car the
sale of which is |
8 | | subject to the Replacement Vehicle Tax.
|
9 | | (8) Personal property sold to an Illinois county fair |
10 | | association for
use in conducting, operating, or promoting |
11 | | the county fair.
|
12 | | (9) Personal property sold to a not-for-profit arts
or |
13 | | cultural organization that establishes, by proof required |
14 | | by the Department
by
rule, that it has received an |
15 | | exemption under Section 501(c)(3) of the
Internal Revenue |
16 | | Code and that is organized and operated primarily for the
|
17 | | presentation
or support of arts or cultural programming, |
18 | | activities, or services. These
organizations include, but |
19 | | are not limited to, music and dramatic arts
organizations |
20 | | such as symphony orchestras and theatrical groups, arts |
21 | | and
cultural service organizations, local arts councils, |
22 | | visual arts organizations,
and media arts organizations.
|
23 | | On and after July 1, 2001 (the effective date of Public Act |
24 | | 92-35), however, an entity otherwise eligible for this |
25 | | exemption shall not
make tax-free purchases unless it has |
26 | | an active identification number issued by
the Department.
|
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1 | | (10) Personal property sold by a corporation, society, |
2 | | association,
foundation, institution, or organization, |
3 | | other than a limited liability
company, that is organized |
4 | | and operated as a not-for-profit service enterprise
for |
5 | | the benefit of persons 65 years of age or older if the |
6 | | personal property
was not purchased by the enterprise for |
7 | | the purpose of resale by the
enterprise.
|
8 | | (11) Personal property sold to a governmental body, to |
9 | | a corporation,
society, association, foundation, or |
10 | | institution organized and operated
exclusively for |
11 | | charitable, religious, or educational purposes, or to a
|
12 | | not-for-profit corporation, society, association, |
13 | | foundation, institution,
or organization that has no |
14 | | compensated officers or employees and that is
organized |
15 | | and operated primarily for the recreation of persons 55 |
16 | | years of
age or older. A limited liability company may |
17 | | qualify for the exemption under
this paragraph only if the |
18 | | limited liability company is organized and operated
|
19 | | exclusively for educational purposes. On and after July 1, |
20 | | 1987, however, no
entity otherwise eligible for this |
21 | | exemption shall make tax-free purchases
unless it has an |
22 | | active identification number issued by the Department.
|
23 | | (12) (Blank).
|
24 | | (12-5) On and after July 1, 2003 and through June 30, |
25 | | 2004, motor vehicles of the second division
with a gross |
26 | | vehicle weight in excess of 8,000 pounds
that
are
subject |
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1 | | to the commercial distribution fee imposed under Section |
2 | | 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, |
3 | | 2004 and through June 30, 2005, the use in this State of |
4 | | motor vehicles of the second division: (i) with a gross |
5 | | vehicle weight rating in excess of 8,000 pounds; (ii) that |
6 | | are subject to the commercial distribution fee imposed |
7 | | under Section 3-815.1 of the Illinois Vehicle Code; and |
8 | | (iii) that are primarily used for commercial purposes. |
9 | | Through June 30, 2005, this
exemption applies to repair |
10 | | and replacement parts added
after the
initial purchase of |
11 | | such a motor vehicle if that motor vehicle is used in a
|
12 | | manner that
would qualify for the rolling stock exemption |
13 | | otherwise provided for in this
Act. For purposes of this |
14 | | paragraph, "used for commercial purposes" means the |
15 | | transportation of persons or property in furtherance of |
16 | | any commercial or industrial enterprise whether for-hire |
17 | | or not.
|
18 | | (13) Proceeds from sales to owners, lessors, or
|
19 | | shippers of
tangible personal property that is utilized by |
20 | | interstate carriers for
hire for use as rolling stock |
21 | | moving in interstate commerce
and equipment operated by a |
22 | | telecommunications provider, licensed as a
common carrier |
23 | | by the Federal Communications Commission, which is
|
24 | | permanently installed in or affixed to aircraft moving in |
25 | | interstate commerce.
|
26 | | (14) Machinery and equipment that will be used by the |
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1 | | purchaser, or a
lessee of the purchaser, primarily in the |
2 | | process of manufacturing or
assembling tangible personal |
3 | | property for wholesale or retail sale or
lease, whether |
4 | | the sale or lease is made directly by the manufacturer or |
5 | | by
some other person, whether the materials used in the |
6 | | process are owned by
the manufacturer or some other |
7 | | person, or whether the sale or lease is made
apart from or |
8 | | as an incident to the seller's engaging in the service
|
9 | | occupation of producing machines, tools, dies, jigs, |
10 | | patterns, gauges, or
other similar items of no commercial |
11 | | value on special order for a particular
purchaser. The |
12 | | exemption provided by this paragraph (14) does not include |
13 | | machinery and equipment used in (i) the generation of |
14 | | electricity for wholesale or retail sale; (ii) the |
15 | | generation or treatment of natural or artificial gas for |
16 | | wholesale or retail sale that is delivered to customers |
17 | | through pipes, pipelines, or mains; or (iii) the treatment |
18 | | of water for wholesale or retail sale that is delivered to |
19 | | customers through pipes, pipelines, or mains. The |
20 | | provisions of Public Act 98-583 are declaratory of |
21 | | existing law as to the meaning and scope of this |
22 | | exemption. Beginning on July 1, 2017, the exemption |
23 | | provided by this paragraph (14) includes, but is not |
24 | | limited to, graphic arts machinery and equipment, as |
25 | | defined in paragraph (4) of this Section.
|
26 | | (15) Proceeds of mandatory service charges separately |
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1 | | stated on
customers' bills for purchase and consumption of |
2 | | food and beverages, to the
extent that the proceeds of the |
3 | | service charge are in fact turned over as
tips or as a |
4 | | substitute for tips to the employees who participate |
5 | | directly
in preparing, serving, hosting or cleaning up the |
6 | | food or beverage function
with respect to which the |
7 | | service charge is imposed.
|
8 | | (16) Tangible personal property sold to a purchaser if |
9 | | the purchaser is exempt from use tax by operation of |
10 | | federal law. This paragraph is exempt from the provisions |
11 | | of Section 2-70.
|
12 | | (17) Tangible personal property sold to a common |
13 | | carrier by rail or
motor that
receives the physical |
14 | | possession of the property in Illinois and that
transports |
15 | | the property, or shares with another common carrier in the
|
16 | | transportation of the property, out of Illinois on a |
17 | | standard uniform bill
of lading showing the seller of the |
18 | | property as the shipper or consignor of
the property to a |
19 | | destination outside Illinois, for use outside Illinois.
|
20 | | (18) Legal tender, currency, medallions, or gold or |
21 | | silver coinage
issued by the State of Illinois, the |
22 | | government of the United States of
America, or the |
23 | | government of any foreign country, and bullion.
|
24 | | (19) Until July 1, 2003, oil field exploration, |
25 | | drilling, and production
equipment, including
(i) rigs and |
26 | | parts of rigs, rotary rigs, cable tool
rigs, and workover |
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1 | | rigs, (ii) pipe and tubular goods, including casing and
|
2 | | drill strings, (iii) pumps and pump-jack units, (iv) |
3 | | storage tanks and flow
lines, (v) any individual |
4 | | replacement part for oil field exploration,
drilling, and |
5 | | production equipment, and (vi) machinery and equipment |
6 | | purchased
for lease; but
excluding motor vehicles required |
7 | | to be registered under the Illinois
Vehicle Code.
|
8 | | (20) Photoprocessing machinery and equipment, |
9 | | including repair and
replacement parts, both new and used, |
10 | | including that manufactured on
special order, certified by |
11 | | the purchaser to be used primarily for
photoprocessing, |
12 | | and including photoprocessing machinery and equipment
|
13 | | purchased for lease.
|
14 | | (21) Until July 1, 2028, coal and aggregate |
15 | | exploration, mining, off-highway hauling,
processing,
|
16 | | maintenance, and reclamation equipment, including
|
17 | | replacement parts and equipment, and including
equipment |
18 | | purchased for lease, but excluding motor vehicles required |
19 | | to be
registered under the Illinois Vehicle Code. The |
20 | | changes made to this Section by Public Act 97-767 apply on |
21 | | and after July 1, 2003, but no claim for credit or refund |
22 | | is allowed on or after August 16, 2013 (the effective date |
23 | | of Public Act 98-456)
for such taxes paid during the |
24 | | period beginning July 1, 2003 and ending on August 16, |
25 | | 2013 (the effective date of Public Act 98-456).
|
26 | | (22) Until June 30, 2013, fuel and petroleum products |
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1 | | sold to or used by an air carrier,
certified by the carrier |
2 | | to be used for consumption, shipment, or storage
in the |
3 | | conduct of its business as an air common carrier, for a |
4 | | flight
destined for or returning from a location or |
5 | | locations
outside the United States without regard to |
6 | | previous or subsequent domestic
stopovers.
|
7 | | Beginning July 1, 2013, fuel and petroleum products |
8 | | sold to or used by an air carrier, certified by the carrier |
9 | | to be used for consumption, shipment, or storage in the |
10 | | conduct of its business as an air common carrier, for a |
11 | | flight that (i) is engaged in foreign trade or is engaged |
12 | | in trade between the United States and any of its |
13 | | possessions and (ii) transports at least one individual or |
14 | | package for hire from the city of origination to the city |
15 | | of final destination on the same aircraft, without regard |
16 | | to a change in the flight number of that aircraft. |
17 | | (23) A transaction in which the purchase order is |
18 | | received by a florist
who is located outside Illinois, but |
19 | | who has a florist located in Illinois
deliver the property |
20 | | to the purchaser or the purchaser's donee in Illinois.
|
21 | | (24) Fuel consumed or used in the operation of ships, |
22 | | barges, or vessels
that are used primarily in or for the |
23 | | transportation of property or the
conveyance of persons |
24 | | for hire on rivers bordering on this State if the
fuel is |
25 | | delivered by the seller to the purchaser's barge, ship, or |
26 | | vessel
while it is afloat upon that bordering river.
|
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1 | | (25) Except as provided in item (25-5) of this |
2 | | Section, a
motor vehicle sold in this State to a |
3 | | nonresident even though the
motor vehicle is delivered to |
4 | | the nonresident in this State, if the motor
vehicle is not |
5 | | to be titled in this State, and if a drive-away permit
is |
6 | | issued to the motor vehicle as provided in Section 3-603 |
7 | | of the Illinois
Vehicle Code or if the nonresident |
8 | | purchaser has vehicle registration
plates to transfer to |
9 | | the motor vehicle upon returning to his or her home
state. |
10 | | The issuance of the drive-away permit or having
the
|
11 | | out-of-state registration plates to be transferred is |
12 | | prima facie evidence
that the motor vehicle will not be |
13 | | titled in this State.
|
14 | | (25-5) The exemption under item (25) does not apply if |
15 | | the state in which the motor vehicle will be titled does |
16 | | not allow a reciprocal exemption for a motor vehicle sold |
17 | | and delivered in that state to an Illinois resident but |
18 | | titled in Illinois. The tax collected under this Act on |
19 | | the sale of a motor vehicle in this State to a resident of |
20 | | another state that does not allow a reciprocal exemption |
21 | | shall be imposed at a rate equal to the state's rate of tax |
22 | | on taxable property in the state in which the purchaser is |
23 | | a resident, except that the tax shall not exceed the tax |
24 | | that would otherwise be imposed under this Act. At the |
25 | | time of the sale, the purchaser shall execute a statement, |
26 | | signed under penalty of perjury, of his or her intent to |
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1 | | title the vehicle in the state in which the purchaser is a |
2 | | resident within 30 days after the sale and of the fact of |
3 | | the payment to the State of Illinois of tax in an amount |
4 | | equivalent to the state's rate of tax on taxable property |
5 | | in his or her state of residence and shall submit the |
6 | | statement to the appropriate tax collection agency in his |
7 | | or her state of residence. In addition, the retailer must |
8 | | retain a signed copy of the statement in his or her |
9 | | records. Nothing in this item shall be construed to |
10 | | require the removal of the vehicle from this state |
11 | | following the filing of an intent to title the vehicle in |
12 | | the purchaser's state of residence if the purchaser titles |
13 | | the vehicle in his or her state of residence within 30 days |
14 | | after the date of sale. The tax collected under this Act in |
15 | | accordance with this item (25-5) shall be proportionately |
16 | | distributed as if the tax were collected at the 6.25% |
17 | | general rate imposed under this Act.
|
18 | | (25-7) Beginning on July 1, 2007, no tax is imposed |
19 | | under this Act on the sale of an aircraft, as defined in |
20 | | Section 3 of the Illinois Aeronautics Act, if all of the |
21 | | following conditions are met: |
22 | | (1) the aircraft leaves this State within 15 days |
23 | | after the later of either the issuance of the final |
24 | | billing for the sale of the aircraft, or the |
25 | | authorized approval for return to service, completion |
26 | | of the maintenance record entry, and completion of the |
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1 | | test flight and ground test for inspection, as |
2 | | required by 14 CFR C.F.R. 91.407; |
3 | | (2) the aircraft is not based or registered in |
4 | | this State after the sale of the aircraft; and |
5 | | (3) the seller retains in his or her books and |
6 | | records and provides to the Department a signed and |
7 | | dated certification from the purchaser, on a form |
8 | | prescribed by the Department, certifying that the |
9 | | requirements of this item (25-7) are met. The |
10 | | certificate must also include the name and address of |
11 | | the purchaser, the address of the location where the |
12 | | aircraft is to be titled or registered, the address of |
13 | | the primary physical location of the aircraft, and |
14 | | other information that the Department may reasonably |
15 | | require. |
16 | | For purposes of this item (25-7): |
17 | | "Based in this State" means hangared, stored, or |
18 | | otherwise used, excluding post-sale customizations as |
19 | | defined in this Section, for 10 or more days in each |
20 | | 12-month period immediately following the date of the sale |
21 | | of the aircraft. |
22 | | "Registered in this State" means an aircraft |
23 | | registered with the Department of Transportation, |
24 | | Aeronautics Division, or titled or registered with the |
25 | | Federal Aviation Administration to an address located in |
26 | | this State. |
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1 | | This paragraph (25-7) is exempt from the provisions
of
|
2 | | Section 2-70.
|
3 | | (26) Semen used for artificial insemination of |
4 | | livestock for direct
agricultural production.
|
5 | | (27) Horses, or interests in horses, registered with |
6 | | and meeting the
requirements of any of the
Arabian Horse |
7 | | Club Registry of America, Appaloosa Horse Club, American |
8 | | Quarter
Horse Association, United States
Trotting |
9 | | Association, or Jockey Club, as appropriate, used for
|
10 | | purposes of breeding or racing for prizes. This item (27) |
11 | | is exempt from the provisions of Section 2-70, and the |
12 | | exemption provided for under this item (27) applies for |
13 | | all periods beginning May 30, 1995, but no claim for |
14 | | credit or refund is allowed on or after January 1, 2008 |
15 | | (the effective date of Public Act 95-88)
for such taxes |
16 | | paid during the period beginning May 30, 2000 and ending |
17 | | on January 1, 2008 (the effective date of Public Act |
18 | | 95-88).
|
19 | | (28) Computers and communications equipment utilized |
20 | | for any
hospital
purpose
and equipment used in the |
21 | | diagnosis,
analysis, or treatment of hospital patients |
22 | | sold to a lessor who leases the
equipment, under a lease of |
23 | | one year or longer executed or in effect at the
time of the |
24 | | purchase, to a
hospital
that has been issued an active tax |
25 | | exemption identification number by the
Department under |
26 | | Section 1g of this Act.
|
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1 | | (29) Personal property sold to a lessor who leases the
|
2 | | property, under a
lease of one year or longer executed or |
3 | | in effect at the time of the purchase,
to a governmental |
4 | | body
that has been issued an active tax exemption |
5 | | identification number by the
Department under Section 1g |
6 | | of this Act.
|
7 | | (30) Beginning with taxable years ending on or after |
8 | | December
31, 1995
and
ending with taxable years ending on |
9 | | or before December 31, 2004,
personal property that is
|
10 | | donated for disaster relief to be used in a State or |
11 | | federally declared
disaster area in Illinois or bordering |
12 | | Illinois by a manufacturer or retailer
that is registered |
13 | | in this State to a corporation, society, association,
|
14 | | foundation, or institution that has been issued a sales |
15 | | tax exemption
identification number by the Department that |
16 | | assists victims of the disaster
who reside within the |
17 | | declared disaster area.
|
18 | | (31) Beginning with taxable years ending on or after |
19 | | December
31, 1995 and
ending with taxable years ending on |
20 | | or before December 31, 2004, personal
property that is |
21 | | used in the performance of infrastructure repairs in this
|
22 | | State, including but not limited to municipal roads and |
23 | | streets, access roads,
bridges, sidewalks, waste disposal |
24 | | systems, water and sewer line extensions,
water |
25 | | distribution and purification facilities, storm water |
26 | | drainage and
retention facilities, and sewage treatment |
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1 | | facilities, resulting from a State
or federally declared |
2 | | disaster in Illinois or bordering Illinois when such
|
3 | | repairs are initiated on facilities located in the |
4 | | declared disaster area
within 6 months after the disaster.
|
5 | | (32) Beginning July 1, 1999, game or game birds sold |
6 | | at a "game breeding
and
hunting preserve area" as that |
7 | | term is used
in the
Wildlife Code. This paragraph is |
8 | | exempt from the provisions
of
Section 2-70.
|
9 | | (33) A motor vehicle, as that term is defined in |
10 | | Section 1-146
of the
Illinois Vehicle Code, that is |
11 | | donated to a corporation, limited liability
company, |
12 | | society, association, foundation, or institution that is |
13 | | determined by
the Department to be organized and operated |
14 | | exclusively for educational
purposes. For purposes of this |
15 | | exemption, "a corporation, limited liability
company, |
16 | | society, association, foundation, or institution organized |
17 | | and
operated
exclusively for educational purposes" means |
18 | | all tax-supported public schools,
private schools that |
19 | | offer systematic instruction in useful branches of
|
20 | | learning by methods common to public schools and that |
21 | | compare favorably in
their scope and intensity with the |
22 | | course of study presented in tax-supported
schools, and |
23 | | vocational or technical schools or institutes organized |
24 | | and
operated exclusively to provide a course of study of |
25 | | not less than 6 weeks
duration and designed to prepare |
26 | | individuals to follow a trade or to pursue a
manual, |
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1 | | technical, mechanical, industrial, business, or commercial
|
2 | | occupation.
|
3 | | (34) Beginning January 1, 2000, personal property, |
4 | | including food, purchased
through fundraising events for |
5 | | the benefit of a public or private elementary or
secondary |
6 | | school, a group of those schools, or one or more school |
7 | | districts if
the events are sponsored by an entity |
8 | | recognized by the school district that
consists primarily |
9 | | of volunteers and includes parents and teachers of the
|
10 | | school children. This paragraph does not apply to |
11 | | fundraising events (i) for
the benefit of private home |
12 | | instruction or (ii) for which the fundraising
entity |
13 | | purchases the personal property sold at the events from |
14 | | another
individual or entity that sold the property for |
15 | | the purpose of resale by the
fundraising entity and that |
16 | | profits from the sale to the fundraising entity.
This |
17 | | paragraph is exempt from the provisions of Section 2-70.
|
18 | | (35) Beginning January 1, 2000 and through December |
19 | | 31, 2001, new or used
automatic vending machines that |
20 | | prepare and serve hot food and beverages,
including |
21 | | coffee, soup, and other items, and replacement parts for |
22 | | these
machines. Beginning January 1, 2002 and through June |
23 | | 30, 2003, machines
and parts for machines used in
|
24 | | commercial, coin-operated amusement and vending business |
25 | | if a use or occupation
tax is paid on the gross receipts |
26 | | derived from the use of the commercial,
coin-operated |
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1 | | amusement and vending machines. This paragraph is exempt |
2 | | from
the provisions of Section 2-70.
|
3 | | (35-5) Beginning August 23, 2001 and through June 30, |
4 | | 2016, food for human consumption that is to be consumed |
5 | | off
the premises where it is sold (other than alcoholic |
6 | | beverages, soft drinks,
and food that has been prepared |
7 | | for immediate consumption) and prescription
and |
8 | | nonprescription medicines, drugs, medical appliances, and |
9 | | insulin, urine
testing materials, syringes, and needles |
10 | | used by diabetics, for human use, when
purchased for use |
11 | | by a person receiving medical assistance under Article V |
12 | | of
the Illinois Public Aid Code who resides in a licensed |
13 | | long-term care facility,
as defined in the Nursing Home |
14 | | Care Act, or a licensed facility as defined in the ID/DD |
15 | | Community Care Act, the MC/DD Act, or the Specialized |
16 | | Mental Health Rehabilitation Act of 2013.
|
17 | | (36) Beginning August 2, 2001, computers and |
18 | | communications equipment
utilized for any hospital purpose |
19 | | and equipment used in the diagnosis,
analysis, or |
20 | | treatment of hospital patients sold to a lessor who leases |
21 | | the
equipment, under a lease of one year or longer |
22 | | executed or in effect at the
time of the purchase, to a |
23 | | hospital that has been issued an active tax
exemption |
24 | | identification number by the Department under Section 1g |
25 | | of this Act.
This paragraph is exempt from the provisions |
26 | | of Section 2-70.
|
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1 | | (37) Beginning August 2, 2001, personal property sold |
2 | | to a lessor who
leases the property, under a lease of one |
3 | | year or longer executed or in effect
at the time of the |
4 | | purchase, to a governmental body that has been issued an
|
5 | | active tax exemption identification number by the |
6 | | Department under Section 1g
of this Act. This paragraph is |
7 | | exempt from the provisions of Section 2-70.
|
8 | | (38) Beginning on January 1, 2002 and through June 30, |
9 | | 2016, tangible personal property purchased
from an |
10 | | Illinois retailer by a taxpayer engaged in centralized |
11 | | purchasing
activities in Illinois who will, upon receipt |
12 | | of the property in Illinois,
temporarily store the |
13 | | property in Illinois (i) for the purpose of subsequently
|
14 | | transporting it outside this State for use or consumption |
15 | | thereafter solely
outside this State or (ii) for the |
16 | | purpose of being processed, fabricated, or
manufactured |
17 | | into, attached to, or incorporated into other tangible |
18 | | personal
property to be transported outside this State and |
19 | | thereafter used or consumed
solely outside this State. The |
20 | | Director of Revenue shall, pursuant to rules
adopted in |
21 | | accordance with the Illinois Administrative Procedure Act, |
22 | | issue a
permit to any taxpayer in good standing with the |
23 | | Department who is eligible for
the exemption under this |
24 | | paragraph (38). The permit issued under
this paragraph |
25 | | (38) shall authorize the holder, to the extent and
in the |
26 | | manner specified in the rules adopted under this Act, to |
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1 | | purchase
tangible personal property from a retailer exempt |
2 | | from the taxes imposed by
this Act. Taxpayers shall |
3 | | maintain all necessary books and records to
substantiate |
4 | | the use and consumption of all such tangible personal |
5 | | property
outside of the State of Illinois.
|
6 | | (39) Beginning January 1, 2008, tangible personal |
7 | | property used in the construction or maintenance of a |
8 | | community water supply, as defined under Section 3.145 of |
9 | | the Environmental Protection Act, that is operated by a |
10 | | not-for-profit corporation that holds a valid water supply |
11 | | permit issued under Title IV of the Environmental |
12 | | Protection Act. This paragraph is exempt from the |
13 | | provisions of Section 2-70.
|
14 | | (40) Beginning January 1, 2010 and continuing through |
15 | | December 31, 2024, materials, parts, equipment, |
16 | | components, and furnishings incorporated into or upon an |
17 | | aircraft as part of the modification, refurbishment, |
18 | | completion, replacement, repair, or maintenance of the |
19 | | aircraft. This exemption includes consumable supplies used |
20 | | in the modification, refurbishment, completion, |
21 | | replacement, repair, and maintenance of aircraft, but |
22 | | excludes any materials, parts, equipment, components, and |
23 | | consumable supplies used in the modification, replacement, |
24 | | repair, and maintenance of aircraft engines or power |
25 | | plants, whether such engines or power plants are installed |
26 | | or uninstalled upon any such aircraft. "Consumable |
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1 | | supplies" include, but are not limited to, adhesive, tape, |
2 | | sandpaper, general purpose lubricants, cleaning solution, |
3 | | latex gloves, and protective films. This exemption applies |
4 | | only to the sale of qualifying tangible personal property |
5 | | to persons who modify, refurbish, complete, replace, or |
6 | | maintain an aircraft and who (i) hold an Air Agency |
7 | | Certificate and are empowered to operate an approved |
8 | | repair station by the Federal Aviation Administration, |
9 | | (ii) have a Class IV Rating, and (iii) conduct operations |
10 | | in accordance with Part 145 of the Federal Aviation |
11 | | Regulations. The exemption does not include aircraft |
12 | | operated by a commercial air carrier providing scheduled |
13 | | passenger air service pursuant to authority issued under |
14 | | Part 121 or Part 129 of the Federal Aviation Regulations. |
15 | | The changes made to this paragraph (40) by Public Act |
16 | | 98-534 are declarative of existing law. It is the intent |
17 | | of the General Assembly that the exemption under this |
18 | | paragraph (40) applies continuously from January 1, 2010 |
19 | | through December 31, 2024; however, no claim for credit or |
20 | | refund is allowed for taxes paid as a result of the |
21 | | disallowance of this exemption on or after January 1, 2015 |
22 | | and prior to February 5, 2020 ( the effective date of |
23 | | Public Act 101-629) this amendatory Act of the 101st |
24 | | General Assembly . |
25 | | (41) Tangible personal property sold to a |
26 | | public-facilities corporation, as described in Section |
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1 | | 11-65-10 of the Illinois Municipal Code, for purposes of |
2 | | constructing or furnishing a municipal convention hall, |
3 | | but only if the legal title to the municipal convention |
4 | | hall is transferred to the municipality without any |
5 | | further consideration by or on behalf of the municipality |
6 | | at the time of the completion of the municipal convention |
7 | | hall or upon the retirement or redemption of any bonds or |
8 | | other debt instruments issued by the public-facilities |
9 | | corporation in connection with the development of the |
10 | | municipal convention hall. This exemption includes |
11 | | existing public-facilities corporations as provided in |
12 | | Section 11-65-25 of the Illinois Municipal Code. This |
13 | | paragraph is exempt from the provisions of Section 2-70. |
14 | | (42) Beginning January 1, 2017 and through December |
15 | | 31, 2026, menstrual pads, tampons, and menstrual cups. |
16 | | (43) Merchandise that is subject to the Rental |
17 | | Purchase Agreement Occupation and Use Tax. The purchaser |
18 | | must certify that the item is purchased to be rented |
19 | | subject to a rental purchase agreement, as defined in the |
20 | | Rental Purchase Agreement Act, and provide proof of |
21 | | registration under the Rental Purchase Agreement |
22 | | Occupation and Use Tax Act. This paragraph is exempt from |
23 | | the provisions of Section 2-70. |
24 | | (44) Qualified tangible personal property used in the |
25 | | construction or operation of a data center that has been |
26 | | granted a certificate of exemption by the Department of |
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1 | | Commerce and Economic Opportunity, whether that tangible |
2 | | personal property is purchased by the owner, operator, or |
3 | | tenant of the data center or by a contractor or |
4 | | subcontractor of the owner, operator, or tenant. Data |
5 | | centers that would have qualified for a certificate of |
6 | | exemption prior to January 1, 2020 had Public Act 101-31 |
7 | | this amendatory Act of the 101st General Assembly been in |
8 | | effect, may apply for and obtain an exemption for |
9 | | subsequent purchases of computer equipment or enabling |
10 | | software purchased or leased to upgrade, supplement, or |
11 | | replace computer equipment or enabling software purchased |
12 | | or leased in the original investment that would have |
13 | | qualified. |
14 | | The Department of Commerce and Economic Opportunity |
15 | | shall grant a certificate of exemption under this item |
16 | | (44) to qualified data centers as defined by Section |
17 | | 605-1025 of the Department of Commerce and Economic |
18 | | Opportunity Law of the
Civil Administrative Code of |
19 | | Illinois. |
20 | | For the purposes of this item (44): |
21 | | "Data center" means a building or a series of |
22 | | buildings rehabilitated or constructed to house |
23 | | working servers in one physical location or multiple |
24 | | sites within 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; |
5 | | cabinets; telecommunications cabling infrastructure; |
6 | | raised floor systems; peripheral components or |
7 | | systems; software; mechanical, electrical, or plumbing |
8 | | systems; battery systems; cooling systems and towers; |
9 | | temperature control systems; other cabling; and other |
10 | | data center infrastructure equipment and systems |
11 | | necessary to operate qualified tangible personal |
12 | | property, including fixtures; and component parts of |
13 | | any of the foregoing, including installation, |
14 | | maintenance, repair, refurbishment, and replacement of |
15 | | qualified tangible personal property to generate, |
16 | | transform, transmit, distribute, or manage electricity |
17 | | necessary to operate qualified tangible personal |
18 | | property; and all other tangible personal property |
19 | | that is essential to the operations of a computer data |
20 | | center. The term "qualified tangible personal |
21 | | property" also includes building materials physically |
22 | | incorporated into the qualifying data center. To |
23 | | document the exemption allowed under this Section, the |
24 | | retailer must obtain from the purchaser a copy of the |
25 | | certificate of eligibility issued by the Department of |
26 | | Commerce and Economic Opportunity. |
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1 | | This item (44) is exempt from the provisions of |
2 | | Section 2-70. |
3 | | (45) Beginning January 1, 2020 and through December |
4 | | 31, 2020, sales of tangible personal property made by a |
5 | | marketplace seller over a marketplace for which tax is due |
6 | | under this Act but for which use tax has been collected and |
7 | | remitted to the Department by a marketplace facilitator |
8 | | under Section 2d of the Use Tax Act are exempt from tax |
9 | | under this Act. A marketplace seller claiming this |
10 | | exemption shall maintain books and records demonstrating |
11 | | that the use tax on such sales has been collected and |
12 | | remitted by a marketplace facilitator. Marketplace sellers |
13 | | that have properly remitted tax under this Act on such |
14 | | sales may file a claim for credit as provided in Section 6 |
15 | | of this Act. No claim is allowed, however, for such taxes |
16 | | for which a credit or refund has been issued to the |
17 | | marketplace facilitator under the Use Tax Act, or for |
18 | | which the marketplace facilitator has filed a claim for |
19 | | credit or refund under the Use Tax Act. |
20 | | (46) Beginning July 1, 2022, breast pumps, breast pump |
21 | | collection and storage supplies, and breast pump kits. |
22 | | This item (46) is exempt from the provisions of Section |
23 | | 2-70. As used in this item (46): |
24 | | "Breast pump" means an electrically controlled or |
25 | | manually controlled pump device designed or marketed to be |
26 | | used to express milk from a human breast during lactation, |
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1 | | including the pump device and any battery, AC adapter, or |
2 | | other power supply unit that is used to power the pump |
3 | | device and is packaged and sold with the pump device at the |
4 | | time of sale. |
5 | | "Breast pump collection and storage supplies" means |
6 | | items of tangible personal property designed or marketed |
7 | | to be used in conjunction with a breast pump to collect |
8 | | milk expressed from a human breast and to store collected |
9 | | milk until it is ready for consumption. |
10 | | "Breast pump collection and storage supplies" |
11 | | includes, but is not limited to: breast shields and breast |
12 | | shield connectors; breast pump tubes and tubing adapters; |
13 | | breast pump valves and membranes; backflow protectors and |
14 | | backflow protector adaptors; bottles and bottle caps |
15 | | specific to the operation of the breast pump; and breast |
16 | | milk storage bags. |
17 | | "Breast pump collection and storage supplies" does not |
18 | | include: (1) bottles and bottle caps not specific to the |
19 | | operation of the breast pump; (2) breast pump travel bags |
20 | | and other similar carrying accessories, including ice |
21 | | packs, labels, and other similar products; (3) breast pump |
22 | | cleaning supplies; (4) nursing bras, bra pads, breast |
23 | | shells, and other similar products; and (5) creams, |
24 | | ointments, and other similar products that relieve |
25 | | breastfeeding-related symptoms or conditions of the |
26 | | breasts or nipples, unless sold as part of a breast pump |
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1 | | kit that is pre-packaged by the breast pump manufacturer |
2 | | or distributor. |
3 | | "Breast pump kit" means a kit that: (1) contains no |
4 | | more than a breast pump, breast pump collection and |
5 | | storage supplies, a rechargeable battery for operating the |
6 | | breast pump, a breastmilk cooler, bottle stands, ice |
7 | | packs, and a breast pump carrying case; and (2) is |
8 | | pre-packaged as a breast pump kit by the breast pump |
9 | | manufacturer or distributor. |
10 | | (47) (46) Tangible personal property sold by or on |
11 | | behalf of the State Treasurer pursuant to the Revised |
12 | | Uniform Unclaimed Property Act. This item (47) (46) is |
13 | | exempt from the provisions of Section 2-70. |
14 | | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; |
15 | | 101-629, eff. 2-5-20; 102-16, eff. 6-17-21; 102-634, eff. |
16 | | 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22; |
17 | | 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813, |
18 | | eff. 5-13-22; 102-1026, eff. 5-27-22; revised 8-15-22.)
|
19 | | ARTICLE 20. PARKING EXCISE TAX |
20 | | Section 20-5. The Parking Excise Tax Act is amended by |
21 | | changing Sections 10-5, 10-10, 10-15, 10-25, 10-30, 10-35, |
22 | | 10-45, and 10-50 as follows: |
23 | | (35 ILCS 525/10-5) |
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1 | | (Text of Section before amendment by P.A. 102-700 )
|
2 | | Sec. 10-5. Definitions. |
3 | | "Booking intermediary" means any person or entity that |
4 | | facilitates the processing and fulfillment of reservation |
5 | | transactions between an operator and a person or entity |
6 | | desiring parking in a parking lot or garage of that operator. |
7 | | "Charge or fee paid for parking" means the gross amount of |
8 | | consideration for the use or privilege of parking a motor |
9 | | vehicle in or upon any parking lot or garage in the State, |
10 | | collected by an operator and valued in money, whether received |
11 | | in money or otherwise, including cash, credits, property, and |
12 | | services, determined without any deduction for costs or |
13 | | expenses, but not including charges that are added to the |
14 | | charge or fee on account of the tax imposed by this Act or on |
15 | | account of any other tax imposed on the charge or fee. "Charge |
16 | | or fee paid for parking" excludes separately stated charges |
17 | | not for the use or privilege or parking and excludes amounts |
18 | | retained by or paid to a booking intermediary for services |
19 | | provided by the booking intermediary. If any separately stated |
20 | | charge is not optional, it shall be presumed that it is part of |
21 | | the charge for the use or privilege or parking. |
22 | | "Department" means the Department of Revenue. |
23 | | "Operator" means any person who engages in the business of |
24 | | operating a parking area or garage, or who, directly or |
25 | | through an agreement or arrangement with another party, |
26 | | collects the consideration for parking or storage of motor |
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1 | | vehicles, recreational vehicles, or other self-propelled |
2 | | vehicles, at that parking place. This includes, but is not |
3 | | limited to, any facilitator or aggregator that collects from |
4 | | the purchaser the charge or fee paid for parking. "Operator" |
5 | | does not include a bank, credit card company, payment |
6 | | processor, booking intermediary, or person whose involvement |
7 | | is limited to performing functions that are similar to those |
8 | | performed by a bank, credit card company, payment processor, |
9 | | or booking intermediary. |
10 | | "Parking area or garage" means any real estate, building, |
11 | | structure, premises, enclosure or other place, whether |
12 | | enclosed or not, except a public way, within the State, where |
13 | | motor vehicles, recreational vehicles, or other self-propelled |
14 | | vehicles, are stored, housed or parked for hire, charge, fee |
15 | | or other valuable consideration in a condition ready for use, |
16 | | or where rent or compensation is paid to the owner, manager, |
17 | | operator or lessee of the premises for the housing, storing, |
18 | | sheltering, keeping or maintaining motor vehicles, |
19 | | recreational vehicles, or other self-propelled vehicles. |
20 | | "Parking area or garage" includes any parking area or garage, |
21 | | whether the vehicle is parked by the owner of the vehicle or by |
22 | | the operator or an attendant. |
23 | | "Person" means any natural individual, firm, trust, |
24 | | estate, partnership, association, joint stock company, joint |
25 | | venture, corporation, limited liability company, or a |
26 | | receiver, trustee, guardian, or other representative appointed |
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1 | | by order of any court. |
2 | | "Purchase price" means the consideration paid for the |
3 | | purchase of a parking space in a parking area or garage, valued |
4 | | in money, whether received in money or otherwise, including |
5 | | cash, gift cards, credits, and property, and shall be |
6 | | determined without any deduction on account of the cost of |
7 | | materials used, labor or service costs, or any other expense |
8 | | whatsoever. |
9 | | "Purchase price" includes any and all charges that the |
10 | | recipient pays related to or incidental to obtaining the use |
11 | | or privilege of using a parking space in a parking area or |
12 | | garage, including but not limited to any and all related |
13 | | markups, service fees, convenience fees, facilitation fees, |
14 | | cancellation fees, overtime fees, or other such charges, |
15 | | regardless of terminology. However, "purchase price" shall not |
16 | | include consideration paid for: |
17 | | (1) optional, separately stated charges not for the |
18 | | use or privilege of using a parking space in the parking |
19 | | area or garage; |
20 | | (2) any charge for a dishonored check; |
21 | | (3) any finance or credit charge, penalty or charge |
22 | | for delayed payment, or discount for prompt payment; |
23 | | (4) any purchase by a purchaser if the operator is |
24 | | prohibited by federal or State Constitution, treaty, |
25 | | convention, statute or court decision from collecting the |
26 | | tax from such purchaser; |
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1 | | (5) the isolated or occasional sale of parking spaces |
2 | | subject to tax under this Act by a person who does not hold |
3 | | himself out as being engaged (or who does not habitually |
4 | | engage) in selling of parking spaces; and |
5 | | (6) any amounts added to a purchaser's bills because |
6 | | of charges made pursuant to the tax imposed by this Act.
If |
7 | | credit is extended, then the amount thereof shall be |
8 | | included only as and when payments are made. |
9 | | "Purchaser" means any person who acquires a parking space |
10 | | in a parking area or garage for use for valuable |
11 | | consideration.
|
12 | | "Use" means the exercise by any person of any right or |
13 | | power over, or the enjoyment of, a parking space in a parking |
14 | | area or garage subject to tax under this Act.
|
15 | | (Source: P.A. 101-31, eff. 6-28-19.) |
16 | | (Text of Section after amendment by P.A. 102-700 ) |
17 | | Sec. 10-5. Definitions. As used in this Act: |
18 | | "Booking intermediary" means any person or entity that |
19 | | facilitates the processing and fulfillment of reservation |
20 | | transactions between an operator and a person or entity |
21 | | desiring parking in a parking lot or garage of that operator. |
22 | | "Department" means the Department of Revenue. |
23 | | "Operator" means any person who engages in the business of |
24 | | operating a parking area or garage, or who, directly or |
25 | | through an agreement or arrangement with another party, |
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1 | | collects the consideration for parking or storage of motor |
2 | | vehicles, recreational vehicles, or other self-propelled |
3 | | vehicles, at that parking place. This includes, but is not |
4 | | limited to, any facilitator or aggregator that collects the |
5 | | purchase price from the purchaser. "Operator" does not include |
6 | | a bank, credit card company, payment processor, booking |
7 | | intermediary (except to the extent a booking intermediary is |
8 | | required to be registered under Section 10-30 or as otherwise |
9 | | provided in this Act), or person whose involvement is limited |
10 | | to performing functions that are similar to those performed by |
11 | | a bank, credit card company, or payment processor , or booking |
12 | | intermediary . |
13 | | "Parking area or garage" means any real estate, building, |
14 | | structure, premises, enclosure or other place, whether |
15 | | enclosed or not, except a public way, within the State, where |
16 | | motor vehicles, recreational vehicles, or other self-propelled |
17 | | vehicles, are stored, housed or parked for hire, charge, fee |
18 | | or other valuable consideration in a condition ready for use, |
19 | | or where rent or compensation is paid to the owner, manager, |
20 | | operator or lessee of the premises for the housing, storing, |
21 | | sheltering, keeping or maintaining motor vehicles, |
22 | | recreational vehicles, or other self-propelled vehicles. |
23 | | "Parking area or garage" includes any parking area or garage, |
24 | | whether the vehicle is parked by the owner of the vehicle or by |
25 | | the operator or an attendant. |
26 | | "Person" means any natural individual, firm, trust, |
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1 | | estate, partnership, association, joint stock company, joint |
2 | | venture, corporation, limited liability company, or a |
3 | | receiver, trustee, guardian, or other representative appointed |
4 | | by order of any court. |
5 | | "Purchase price" means the consideration paid for the |
6 | | purchase of a parking space in a parking area or garage, valued |
7 | | in money, whether received in money or otherwise, including |
8 | | cash, gift cards, credits, and property, and shall be |
9 | | determined without any deduction on account of the cost of |
10 | | materials used, labor or service costs, or any other expense |
11 | | whatsoever. |
12 | | "Purchase price" includes any and all charges that the |
13 | | recipient pays related to or incidental to obtaining the use |
14 | | or privilege of using a parking space in a parking area or |
15 | | garage, including but not limited to any and all related |
16 | | markups, service fees, convenience fees, facilitation fees, |
17 | | cancellation fees, overtime fees, or other such charges, |
18 | | regardless of terminology. However, "purchase price" shall not |
19 | | include consideration paid for: |
20 | | (1) optional, separately stated charges not for the |
21 | | use or privilege of using a parking space in the parking |
22 | | area or garage; |
23 | | (2) any charge for a dishonored check; |
24 | | (3) any finance or credit charge, penalty or charge |
25 | | for delayed payment, or discount for prompt payment; |
26 | | (4) any purchase by a purchaser if the operator is |
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1 | | prohibited by federal or State Constitution, treaty, |
2 | | convention, statute or court decision from collecting the |
3 | | tax from such purchaser; |
4 | | (5) the isolated or occasional sale of parking spaces |
5 | | subject to tax under this Act by a person who does not hold |
6 | | himself out as being engaged (or who does not habitually |
7 | | engage) in selling of parking spaces; and |
8 | | (6) any amounts added to a purchaser's bills because |
9 | | of charges made pursuant to the tax imposed by this Act.
If |
10 | | credit is extended, then the amount thereof shall be |
11 | | included only as and when payments are made. |
12 | | "Purchaser" means any person who acquires a parking space |
13 | | in a parking area or garage for use for valuable |
14 | | consideration.
|
15 | | "Use" means the exercise by any person of any right or |
16 | | power over, or the enjoyment of, a parking space in a parking |
17 | | area or garage subject to tax under this Act.
|
18 | | (Source: P.A. 101-31, eff. 6-28-19; 102-700, eff. 7-1-23.) |
19 | | (35 ILCS 525/10-10)
|
20 | | Sec. 10-10. Imposition of tax; calculation of tax. |
21 | | (a) Beginning on January 1, 2020, a tax is imposed on the |
22 | | privilege of using in this State a parking space in a parking |
23 | | area or garage for the use of parking one or more motor |
24 | | vehicles, recreational vehicles, or other self-propelled |
25 | | vehicles, at the rate of: |
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1 | | (1) 6% of the purchase price for a parking space paid |
2 | | for on an hourly, daily, or weekly basis; and |
3 | | (2) 9% of the purchase price for a parking space paid |
4 | | for on a monthly or annual basis. |
5 | | (b) The tax shall be collected from the purchaser by the |
6 | | operator. Notwithstanding the provisions of this subsection, |
7 | | beginning on January 1, 2024, if a booking intermediary |
8 | | facilitates the processing and fulfillment of the reservation |
9 | | for an operator that is not registered under Section 10-30, |
10 | | then the tax shall be collected on the purchase price from the |
11 | | purchaser by the booking intermediary on behalf of the |
12 | | operator, and the tax shall be remitted to the Department by |
13 | | the booking intermediary. The booking intermediary that |
14 | | facilitates the processing and fulfillment of the reservation |
15 | | for an operator that is not registered under Section 10-30 and |
16 | | the unregistered operator are jointly and severally liable for |
17 | | payment of the tax to the Department. |
18 | | (b-5) Booking intermediaries shall collect the tax on the |
19 | | purchase price paid by purchasers on behalf of registered |
20 | | operators. If a booking intermediary charges a separate |
21 | | service charge that is included in the purchase price, the tax |
22 | | shall be collected on that separate service charge as well, |
23 | | even if the separate service charge is retained by the booking |
24 | | intermediary. Beginning January 1, 2024, booking |
25 | | intermediaries are liable for and shall remit the tax to the |
26 | | Department on any separately stated service fee that the |
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1 | | booking intermediary charges to the customer. Operators are |
2 | | liable for the remittance of tax under this Act on the |
3 | | remainder of the purchase price for the transaction. Booking |
4 | | intermediaries and operators are subject to audit on all such |
5 | | sales. |
6 | | (c) An operator that has paid or remitted the tax imposed |
7 | | by this Act to another operator in connection with the same |
8 | | parking transaction, or the use of the same parking space, |
9 | | that is subject to tax under this Act, shall be entitled to a |
10 | | credit for such tax paid or remitted against the amount of tax |
11 | | owed under this Act, provided that the other operator is |
12 | | registered under this Act. The operator claiming the credit |
13 | | shall have the burden of proving it is entitled to claim a |
14 | | credit. |
15 | | (d) If any operator or booking intermediary erroneously |
16 | | collects tax or collects more from the purchaser than the |
17 | | purchaser's liability for the transaction, the purchaser shall |
18 | | have a legal right to claim a refund of such amount from the |
19 | | operator or booking intermediary . However, if such amount is |
20 | | not refunded to the purchaser for any reason, the operator or |
21 | | booking intermediary is liable to pay such amount to the |
22 | | Department. |
23 | | (e) The tax imposed by this Section is not imposed with |
24 | | respect to any transaction in interstate commerce, to the |
25 | | extent that the transaction may not, under the Constitution |
26 | | and statutes of the United States, be made the subject of |
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1 | | taxation by this State.
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2 | | (Source: P.A. 101-31, eff. 6-28-19.) |
3 | | (35 ILCS 525/10-15)
|
4 | | Sec. 10-15. Filing of returns and deposit of proceeds. On |
5 | | or before the last day of each calendar month, every operator |
6 | | engaged in the business of providing to purchasers parking |
7 | | areas and garages in this State during the preceding calendar |
8 | | month and every booking intermediary required to collect tax |
9 | | under Section 10-10 shall file a return with the Department, |
10 | | stating: |
11 | | (1) the name of the operator or booking intermediary ; |
12 | | (2) the address of its principal place of business |
13 | | and , if applicable, the address of the principal place of |
14 | | business from which it provides parking areas and garages |
15 | | in this State; |
16 | | (3) the total amount of receipts received by the |
17 | | operator during the preceding calendar month or quarter, |
18 | | as the case may be, from sales of parking spaces to |
19 | | purchasers in parking areas or garages during the |
20 | | preceding calendar month or quarter; the total amount of |
21 | | receipts for separately stated service fees that are |
22 | | charged to the customer by the booking intermediary in |
23 | | connection with the booking intermediary's facilitation of |
24 | | parking spot reservations for an operator during the |
25 | | preceding calendar month or quarter, as the case may be; |
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1 | | and, if the return is filed by a booking intermediary that |
2 | | collects the tax under this Act on behalf of an |
3 | | unregistered operator, as provided in Section 10-10, then |
4 | | the total amount of receipts received by the booking |
5 | | intermediary on behalf of the unregistered operator during |
6 | | the preceding calendar month or quarter, as the case may |
7 | | be, from sales of parking spaces to purchasers in parking |
8 | | areas or garages during the preceding calendar month or |
9 | | quarter; |
10 | | (4) deductions allowed by law; |
11 | | (5) the total amount of receipts received by the |
12 | | operator during the preceding calendar month or quarter |
13 | | upon which the tax was computed; the total amount of |
14 | | receipts for separately stated service fees that are |
15 | | charged to the customer by a booking intermediary in |
16 | | connection with the booking intermediary's facilitation of |
17 | | parking spot reservations for an operator during the |
18 | | preceding calendar month or quarter upon which the tax was |
19 | | computed; and, if the return is filed by a booking |
20 | | intermediary that collects the tax under this Act on |
21 | | behalf of an unregistered operator, as provided in Section |
22 | | 10-10, then the total amount of receipts received by the |
23 | | booking intermediary on behalf of the unregistered |
24 | | operator during the preceding calendar month or quarter |
25 | | upon which the tax was computed; |
26 | | (6) the amount of tax due; and |
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1 | | (7) such other reasonable information as the |
2 | | Department may require. |
3 | | If an operator or booking intermediary ceases to engage in |
4 | | the kind of business that makes it responsible for filing |
5 | | returns under this Act, then that operator or booking |
6 | | intermediary shall file a final return under this Act with the |
7 | | Department on or before the last day of the month after |
8 | | discontinuing such business. |
9 | | All returns required to be filed and payments required to |
10 | | be made under this Act shall be by electronic means. Taxpayers |
11 | | who demonstrate hardship in filing or paying electronically |
12 | | may petition the Department to waive the electronic filing or |
13 | | payment requirement, or both. The Department may require a |
14 | | separate return for the tax under this Act or combine the |
15 | | return for the tax under this Act with the return for other |
16 | | taxes. In addition to the requirement to file all returns |
17 | | required to be filed and payments required to be made under |
18 | | this Act by electronic means, booking intermediaries shall |
19 | | file returns in the form and manner required by the |
20 | | Department. |
21 | | If the same person has more than one business registered |
22 | | with the Department under separate registrations under this |
23 | | Act, that person shall not file each return that is due as a |
24 | | single return covering all such registered businesses but |
25 | | shall file separate returns for each such registered business. |
26 | | If the operator or booking intermediary is a corporation, |
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1 | | the return filed on behalf of that corporation shall be signed |
2 | | by the president, vice-president, secretary, or treasurer, or |
3 | | by a properly accredited agent of such corporation. |
4 | | The operator or booking intermediary filing the return |
5 | | under this Act shall, at the time of filing the return, pay to |
6 | | the Department the amount of tax imposed by this Act less a |
7 | | discount of 1.75%, not to exceed $1,000 per month, which is |
8 | | allowed to reimburse the operator or booking intermediary for |
9 | | the expenses incurred in keeping records, preparing and filing |
10 | | returns, remitting the tax, and supplying data to the |
11 | | Department on request. |
12 | | If any payment provided for in this Section exceeds the |
13 | | taxpayer's liabilities under this Act, as shown on an original |
14 | | return, the Department may authorize the taxpayer to credit |
15 | | such excess payment against liability subsequently to be |
16 | | remitted to the Department under this Act, in accordance with |
17 | | reasonable rules adopted by the Department. If the Department |
18 | | subsequently determines that all or any part of the credit |
19 | | taken was not actually due to the taxpayer, the taxpayer's |
20 | | discount shall be reduced by an amount equal to the difference |
21 | | between the discount as applied to the credit taken and that |
22 | | actually due, and that taxpayer shall be liable for penalties |
23 | | and interest on such difference.
|
24 | | (Source: P.A. 101-31, eff. 6-28-19.) |
25 | | (35 ILCS 525/10-25)
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1 | | Sec. 10-25. Collection of tax. |
2 | | (a) Beginning with bills issued or charges collected for a |
3 | | purchase of a parking space in a parking area or garage on and |
4 | | after January 1, 2020, the tax imposed by this Act shall be |
5 | | collected from the purchaser by the operator , or, beginning |
6 | | January 1, 2024 by a booking intermediary as provided in |
7 | | Section 10-10, at the rate stated in Section 10-10 and shall be |
8 | | remitted to the Department as provided in this Act. All |
9 | | charges for parking spaces in a parking area or garage are |
10 | | presumed subject to tax collection. Operators and booking |
11 | | intermediaries, as applicable, shall collect the tax from |
12 | | purchasers by adding the tax to the amount of the purchase |
13 | | price received from the purchaser. The tax imposed by the Act |
14 | | shall when collected be stated as a distinct item separate and |
15 | | apart from the purchase price of the service subject to tax |
16 | | under this Act. However, where it is not possible to state the |
17 | | tax separately the Department may by rule exempt such |
18 | | purchases from this requirement so long as purchasers are |
19 | | notified by language on the invoice or notified by a sign that |
20 | | the tax is included in the purchase price. |
21 | | (b) Any person purchasing a parking space in a parking |
22 | | area or garage subject to tax under this Act as to which there |
23 | | has been no charge made to him of the tax imposed by Section |
24 | | 10-10, shall make payment of the tax imposed by Section 10-10 |
25 | | of this Act in the form and manner provided by the Department, |
26 | | such payment to be made to the Department in the manner and |
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1 | | form required by the Department not later than the 20th day of |
2 | | the month following the month of purchase of the parking |
3 | | space.
|
4 | | (Source: P.A. 101-31, eff. 6-28-19.) |
5 | | (35 ILCS 525/10-30)
|
6 | | Sec. 10-30. Registration of operators and booking |
7 | | intermediaries . |
8 | | (a) A person who engages in business as an operator of a |
9 | | parking area or garage in this State , or, beginning January 1, |
10 | | 2024, a booking intermediary that directly charges to a |
11 | | customer a separately stated service fee pursuant to |
12 | | subsection (b-5) of Section 10-10, or, beginning January 1, |
13 | | 2024, a booking intermediary that facilitates the processing |
14 | | and fulfillment of a reservation for an operator that is not |
15 | | registered under Section 10-10, shall register with the |
16 | | Department. Application for a certificate of registration |
17 | | shall be made to the Department, by electronic means, in the |
18 | | form and manner prescribed by the Department and shall contain |
19 | | any reasonable information the Department may require. Upon |
20 | | receipt of the application for a certificate of registration |
21 | | in proper form and manner, the Department shall issue to the |
22 | | applicant a certificate of registration. Operators who |
23 | | demonstrate that they do not have access to the Internet or |
24 | | demonstrate hardship in applying electronically may petition |
25 | | the Department to waive the electronic application |
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1 | | requirements. |
2 | | (b) The Department may refuse to issue or reissue a |
3 | | certificate of registration to any applicant for the reasons |
4 | | set forth in Section 2505-380 of the Department of Revenue Law |
5 | | of the Civil Administrative Code of Illinois. |
6 | | (c) Any person aggrieved by any decision of the Department |
7 | | under this Section may, within 20 days after notice of such |
8 | | decision, protest and request a hearing, whereupon the |
9 | | Department shall give notice to such person of the time and |
10 | | place fixed for such hearing and shall hold a hearing in |
11 | | conformity with the provisions of this Act and then issue its |
12 | | final administrative decision in the matter to such person. In |
13 | | the absence of such a protest within 20 days, the Department's |
14 | | decision shall become final without any further determination |
15 | | being made or notice given.
|
16 | | (Source: P.A. 101-31, eff. 6-28-19.) |
17 | | (35 ILCS 525/10-35)
|
18 | | Sec. 10-35. Revocation of certificate of registration. |
19 | | (a) The Department may, after notice and a hearing as |
20 | | provided in this Act, revoke the certificate of registration |
21 | | of any operator or booking intermediary who violates any of |
22 | | the provisions of this Act or any rule adopted pursuant to this |
23 | | Act. Before revocation of a certificate of registration, the |
24 | | Department shall, within 90 days after non-compliance and at |
25 | | least 7 days prior to the date of the hearing, give the |
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1 | | operator or booking intermediary so accused notice in writing |
2 | | of the charge against him or her, and on the date designated |
3 | | shall conduct a hearing upon this matter. The lapse of such |
4 | | 90-day period shall not preclude the Department from |
5 | | conducting revocation proceedings at a later date if |
6 | | necessary. Any hearing held under this Section shall be |
7 | | conducted by the Director or by any officer or employee of the |
8 | | Department designated in writing by the Director. |
9 | | (b) The Department may revoke a certificate of |
10 | | registration for the reasons set forth in Section 2505-380 of |
11 | | the Department of Revenue Law of the Civil Administrative Code |
12 | | of Illinois. |
13 | | (c) Upon the hearing of any such proceeding, the Director |
14 | | or any officer or employee of the Department designated in |
15 | | writing by the Director may administer oaths, and the |
16 | | Department may procure by its subpoena the attendance of |
17 | | witnesses and, by its subpoena duces tecum, the production of |
18 | | relevant books and papers. Any circuit court, upon application |
19 | | either of the operator or of the Department, may, by order duly |
20 | | entered, require the attendance of witnesses and the |
21 | | production of relevant books and papers before the Department |
22 | | in any hearing relating to the revocation of certificates of |
23 | | registration. Upon refusal or neglect to obey the order of the |
24 | | court, the court may compel obedience thereof by proceedings |
25 | | for contempt. |
26 | | (d) The Department may, by application to any circuit |
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1 | | court, obtain an injunction requiring any person who engages |
2 | | in business as an operator or booking intermediary under this |
3 | | Act to obtain a certificate of registration. Upon refusal or |
4 | | neglect to obey the order of the court, the court may compel |
5 | | obedience by proceedings for contempt.
|
6 | | (Source: P.A. 101-31, eff. 6-28-19.) |
7 | | (35 ILCS 525/10-45)
|
8 | | Sec. 10-45. Tax collected as debt owed to State. The tax |
9 | | herein required to be collected by any operator , booking |
10 | | intermediary, or valet business and any such tax collected by |
11 | | that person, shall constitute a debt owed by that person to |
12 | | this State.
|
13 | | (Source: P.A. 101-31, eff. 6-28-19.) |
14 | | (35 ILCS 525/10-50)
|
15 | | Sec. 10-50. Incorporation by reference. All of the |
16 | | provisions of Sections 1, 2a, 2b, 3 (except provisions |
17 | | relating to transaction returns and except for provisions that |
18 | | are inconsistent with this Act), in respect to all provisions |
19 | | therein other than the State rate of tax) 4, 5, 5a, 5b, 5c, 5d, |
20 | | 5e, 5f, 5g, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, |
21 | | and 13 of the Retailers' Occupation Tax Act that are not |
22 | | inconsistent with this Act, and all provisions of the Uniform |
23 | | Penalty and Interest Act shall apply, as far as practicable, |
24 | | to the subject matter of this Act to the same extent as if such |
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1 | | provisions were included in this Act. The enumerated |
2 | | provisions of the Retailers' Occupation Tax Act in this |
3 | | Section and all provisions of the Uniform Penalty and Interest |
4 | | Act shall apply, as far as practicable, to booking |
5 | | intermediaries required to be registered under Section 10-30 |
6 | | of this Act.
|
7 | | (Source: P.A. 101-31, eff. 6-28-19.) |
8 | | ARTICLE 25. HOTELS-DISASTER RELIEF |
9 | | Section 25-5. The Hotel Operators' Occupation Tax Act is |
10 | | amended by changing Section 3 as follows:
|
11 | | (35 ILCS 145/3) (from Ch. 120, par. 481b.33)
|
12 | | Sec. 3. Rate; exemptions.
|
13 | | (a) A tax is imposed upon persons engaged in the business |
14 | | of renting,
leasing or letting rooms in a hotel at the rate of |
15 | | 5% of 94% of the gross
rental receipts from such renting, |
16 | | leasing or letting, excluding, however,
from gross rental |
17 | | receipts, the proceeds of such renting, leasing or
letting to |
18 | | permanent residents of that hotel and proceeds from the tax
|
19 | | imposed under subsection (c) of Section 13 of the Metropolitan |
20 | | Pier and
Exposition Authority Act.
|
21 | | (b) There shall be imposed an
additional tax upon persons |
22 | | engaged in the business of renting, leasing or
letting rooms |
23 | | in a hotel at the rate of 1% of 94% of the gross rental
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1 | | receipts from such renting, leasing or letting, excluding, |
2 | | however, from
gross rental receipts, the proceeds of such |
3 | | renting, leasing or letting to
permanent residents of that |
4 | | hotel and proceeds from the tax imposed under
subsection (c) |
5 | | of Section 13 of the Metropolitan Pier and Exposition
|
6 | | Authority Act.
|
7 | | (c) No funds received pursuant to this Act shall be used to
|
8 | | advertise for or otherwise promote new competition in the |
9 | | hotel business.
|
10 | | (d) However, such tax is not imposed upon the privilege of
|
11 | | engaging in any business in Interstate Commerce or otherwise,
|
12 | | which business may not, under the Constitution and Statutes of
|
13 | | the United States, be made the subject of taxation by this |
14 | | State.
In addition, the tax is not imposed upon gross rental |
15 | | receipts for which
the hotel operator is prohibited from |
16 | | obtaining reimbursement for the tax
from the customer by |
17 | | reason of a federal treaty.
|
18 | | (d-5) On and after July 1, 2017, the tax imposed by this |
19 | | Act shall not apply to gross rental receipts received by an |
20 | | entity that is organized and operated exclusively for |
21 | | religious purposes and possesses an active Exemption |
22 | | Identification Number issued by the Department pursuant to the |
23 | | Retailers' Occupation Tax Act when acting as a hotel operator |
24 | | renting, leasing, or letting rooms: |
25 | | (1) in furtherance of the purposes for which it is |
26 | | organized; or |
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1 | | (2) to entities that (i) are organized and operated |
2 | | exclusively for religious purposes, (ii) possess an active |
3 | | Exemption Identification Number issued by the Department |
4 | | pursuant to the Retailers' Occupation Tax Act, and (iii) |
5 | | rent the rooms in furtherance of the purposes for which |
6 | | they are organized. |
7 | | No gross rental receipts are exempt under paragraph (2) of |
8 | | this subsection (d-5) unless the hotel operator obtains the |
9 | | active Exemption Identification Number from the exclusively |
10 | | religious entity to whom it is renting and maintains that |
11 | | number in its books and records. Gross rental receipts from |
12 | | all rentals other than those described in items (1) or (2) of |
13 | | this subsection (d-5) are subject to the tax imposed by this |
14 | | Act unless otherwise exempt under this Act. |
15 | | This subsection (d-5) is exempt from the sunset provisions |
16 | | of Section 3-5 of this Act. |
17 | | (d-10) On and after July 1, 2023, the tax imposed by this |
18 | | Act shall not apply to gross rental receipts received from the |
19 | | renting,
leasing, or letting of rooms to an entity that is |
20 | | organized and operated exclusively by an organization |
21 | | chartered by the United States Congress for the purpose of |
22 | | providing disaster relief and that possesses an active |
23 | | Exemption Identification Number issued by the Department |
24 | | pursuant to the Retailers' Occupation Tax Act if the renting, |
25 | | leasing, or letting of the rooms is in furtherance of the |
26 | | purposes for which the exempt organization is organized. This |
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1 | | subsection (d-10) is exempt from the sunset provisions of |
2 | | Section 3-5 of this Act. |
3 | | (e) Persons subject to the tax imposed by this Act may
|
4 | | reimburse themselves for their tax liability under this Act by
|
5 | | separately stating such tax as an additional charge, which
|
6 | | charge may be stated in combination, in a single amount, with
|
7 | | any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the
|
8 | | Illinois Municipal Code, and Section 25.05-10 of "An Act to |
9 | | revise
the law in relation to counties".
|
10 | | (f) If any hotel operator collects an amount (however
|
11 | | designated) which purports to reimburse such operator for |
12 | | hotel
operators' occupation tax liability measured by receipts |
13 | | which
are not subject to hotel operators' occupation tax, or |
14 | | if any
hotel operator, in collecting an amount (however |
15 | | designated)
which purports to reimburse such operator for |
16 | | hotel operators'
occupation tax liability measured by receipts |
17 | | which are subject
to tax under this Act, collects more from the |
18 | | customer than the
operators' hotel operators' occupation tax |
19 | | liability in the
transaction is, the customer shall have a |
20 | | legal right to claim
a refund of such amount from such |
21 | | operator. However, if such
amount is not refunded to the |
22 | | customer for any reason, the hotel
operator is liable to pay |
23 | | such amount to the Department.
|
24 | | (Source: P.A. 100-213, eff. 8-18-17.)
|
25 | | ARTICLE 30. MUNICIPAL CODE-UTILITIES |
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1 | | Section 30-5. The Illinois Municipal Code is amended by |
2 | | changing Section 8-11-2.5 as follows: |
3 | | (65 ILCS 5/8-11-2.5)
|
4 | | Sec. 8-11-2.5. Municipal tax review; requests for |
5 | | information. |
6 | | (a) If a municipality has imposed a tax under Section |
7 | | 8-11-2, then the municipality, which may act through its |
8 | | designated auditor or agent, may conduct an audit of tax |
9 | | receipts collected from the public utility that is subject to |
10 | | the tax
or that collects the tax from purchasers on behalf of |
11 | | the municipality to determine whether the amount of tax that |
12 | | was paid by the public utility was accurate.
|
13 | | (b) Not more than once every 2 years, a municipality that |
14 | | has imposed a tax under Section 8-11-2 of this Code Act may, |
15 | | subject to the limitations and protections stated in the Local |
16 | | Government Taxpayers' Bill of Rights Act, make a written |
17 | | request via e-mail to an e-mail address provided by the |
18 | | utility for any information from a utility in the format |
19 | | maintained by the public utility in the ordinary course of its |
20 | | business that the municipality reasonably requires in order to |
21 | | perform an audit under subsection (a). The information that |
22 | | may be requested by the municipality includes, without |
23 | | limitation: |
24 | | (1) in an electronic format used by the public utility |
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1 | | in the ordinary course of its business, the |
2 | | premises-specific and other information used by the public |
3 | | utility to determine the amount of tax due to the |
4 | | municipality, for a time period that includes the year in |
5 | | which the request is made and not more than 6 years |
6 | | immediately preceding that year, as appropriate for the |
7 | | period being audited, and which shall include for each |
8 | | customer premises in the municipality: (i) the premises |
9 | | address and zip code; (ii) the classification of the |
10 | | premises as designated by the public utility, such as |
11 | | residential, commercial, or industrial; (iii) monthly |
12 | | usage information sufficient to calculate taxes due, in |
13 | | therms, kilowatts, minutes, or other such other unit of |
14 | | measurement used to calculate the taxes; (iv) the taxes |
15 | | actually assessed, collected, and remitted to the |
16 | | municipality; (v) the first date of service for the |
17 | | premises, if that date occurred within the period being |
18 | | audited; and (vi) any tax exemption claimed for the |
19 | | premises and any additional information that supports a |
20 | | specific tax exemption, if the municipality requests that |
21 | | information, including the customer name and other |
22 | | relevant data; however, a public utility that is an |
23 | | electric utility may not provide other customer-specific |
24 | | information to the municipality; and |
25 | | (2) the premises address for customer accounts that |
26 | | the public utility's records indicate are: (i) in a |
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1 | | bordering municipality, township, or unincorporated area |
2 | | (other than the City of Chicago), provided that the |
3 | | municipality provides the public utility a list of such |
4 | | bordering jurisdictions; or (ii) in any zip code with |
5 | | boundaries that include or are adjacent to the requesting |
6 | | municipality provided that the municipality provides the |
7 | | public utility a list of those zip codes; this item (ii) |
8 | | applies to requests made on or after September 1, 2022. If |
9 | | any such customer is determined by the municipality and |
10 | | the utility to be located within the requesting |
11 | | municipality, then the public utility shall provide the |
12 | | additional information provided in paragraph (1) of this |
13 | | subsection (b). . |
14 | | Following the municipality's receipt of the information |
15 | | provided by the public utility pursuant to paragraphs (1) or |
16 | | (2) of this subsection (b), if a question or issue arises that |
17 | | can only be addressed by accessing customer-specific or |
18 | | additional information not described in this Section, then the |
19 | | utility shall attempt to resolve the question or issue without |
20 | | disclosing any customer-specific information. If this process |
21 | | does not resolve the question or issue, then either the |
22 | | municipality or public utility can further pursue the matter |
23 | | before the Department of Revenue, which has the discretion to |
24 | | receive or share customer-specific information with the |
25 | | municipality as appropriate subject to confidentiality |
26 | | restrictions. |
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1 | | (c) Each public utility must provide the information |
2 | | requested under subsection (b) within 45 days after the date |
3 | | of the request. |
4 | | The time in which a public utility must provide the |
5 | | information requested under subsection (b) may be extended by |
6 | | an agreement between the municipality and the public utility. |
7 | | (d) If an audit by the municipality or its agents finds an |
8 | | error by the public utility in the amount of taxes paid by the |
9 | | public utility, then the municipality must notify the public |
10 | | utility of the error. Any such notice must be issued pursuant |
11 | | to Section 30 of the Local Government Taxpayers' Bill of |
12 | | Rights Act or
a lesser period of time from the date the tax was |
13 | | due that may be specified in the municipal
ordinance imposing |
14 | | the tax. Upon such a notice, any audit shall be conducted |
15 | | pursuant to Section 35 of the Local Government Taxpayers' Bill |
16 | | of Rights Act subject to the timelines set forth in this |
17 | | subsection (d). The public utility must submit a written |
18 | | response within 60 days after the date the notice was |
19 | | postmarked stating that it has corrected the error or stating |
20 | | the reason that the error is inapplicable or inaccurate. The |
21 | | municipality then has 60 days after the receipt of the public |
22 | | utility's response to review and contest the conclusion of the |
23 | | public utility. If the parties are unable to agree on the |
24 | | disposition of the audit findings within 120 days after the |
25 | | notification of the error to the public utility, then either |
26 | | party may submit the matter for appeal as outlined in Section |
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1 | | 40 of the Local Government Taxpayers' Bill of Rights Act. If |
2 | | the appeals process does not produce a satisfactory result, |
3 | | then either party may pursue the alleged error in a court of |
4 | | competent jurisdiction. |
5 | | (e) The public utility shall be liable to the municipality |
6 | | for unpaid taxes, including taxes that the public utility |
7 | | failed to properly bill to the customer subject to subsection |
8 | | paragraph (2) of subsection (e-10) of this Section. This |
9 | | subsection (e) does not limit a utility's right to an |
10 | | offsetting credit it would otherwise be entitled to, including |
11 | | that authorized by subsection (c) of Section 8-11-2 of this |
12 | | the Code. To the extent that a public utility's errors in past |
13 | | tax collections and payments relate to premises located in an |
14 | | area of the municipality that was annexed on or after March 17, |
15 | | 2023 ( the effective date of Public Act 102-1144) this |
16 | | amendatory Act of the 102nd General Assembly , however, the |
17 | | public utility shall only be liable for such errors beginning |
18 | | 60 days after the date that the municipality provided the |
19 | | public utility notice of the annexation, provided that the |
20 | | public utility provides municipalities with an email address |
21 | | to send annexation notices. A copy of the annexation ordinance |
22 | | and the map filed with the County Clerk sent to the email |
23 | | address provided by the public utility shall be deemed |
24 | | sufficient notice, but other forms of notice may also be |
25 | | sufficient. |
26 | | (e-5) Upon mutual agreement, a utility and municipality |
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1 | | may use a web portal in lieu of email to receive notice of |
2 | | annexations and boundary changes. After December 31, 2025 for |
3 | | a gas public utility that serves more than 2,000,000 customers |
4 | | in Illinois and after December 31, 2022 for all other public |
5 | | utilities that serve more than 1,000,000 retail customers in |
6 | | Illinois, the public utilities shall provide a secure web |
7 | | portal for municipalities to use, and, thereafter, the web |
8 | | portals shall be used by all municipalities to notify the |
9 | | public utilities of annexations. The web portal must provide |
10 | | the municipality with an electronic record of all |
11 | | communications and attached documents that the municipality |
12 | | has submitted through the portal. |
13 | | (e-10) (1) No later than August 1, 2023, the Department of |
14 | | Revenue shall develop and publish a written process to be used |
15 | | by each public utility and each municipality that imposes a |
16 | | tax under Section 8-11-2 of this the Code, which may act |
17 | | through its designated auditor or agent, under which: |
18 | | (A) by December 31, 2024, and on a regular schedule |
19 | | thereafter to occur approximately every 5 years, each |
20 | | public utility shall work collaboratively with each |
21 | | municipality to develop and file with the Department of |
22 | | Revenue, a master list of all premises addresses in the |
23 | | municipality (including premises addresses with inactive |
24 | | accounts) that are subject to such tax and all accounts in |
25 | | the municipality that are exempt from such tax, provided |
26 | | that the final date for the first master list shall be |
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1 | | extended, at the utility's request, to no later than |
2 | | December 31, 2026; |
3 | | (B) information is provided to the municipality to |
4 | | facilitate development of the master list including |
5 | | information described in paragraph (1) of subsection (b) |
6 | | of this Section regarding all accounts (including premises |
7 | | addresses with inactive accounts) that the public |
8 | | utility's records show are in the municipality and the |
9 | | premises addresses in (i) any bordering municipality, (ii) |
10 | | any bordering township, or (iii) any zip code that is in |
11 | | any part in the municipality or that borders the |
12 | | municipality; |
13 | | (C) any dispute between the public utility and the |
14 | | municipality related to the master list will be resolved; |
15 | | (D) on a semi-annual basis following the development |
16 | | of the master list, each public utility shall provide to |
17 | | each municipality certain information that the |
18 | | municipality can use to nominate changes to the master |
19 | | list, including, but not limited to: (i) a list of any |
20 | | tax-related changes, such as the addition or removal of an |
21 | | exemption, or to the taxing jurisdiction, to any account |
22 | | on the master list; and (ii) new premises addresses within |
23 | | the municipality, any bordering municipality, in any |
24 | | bordering township, or in any zip code that is in any part |
25 | | in the municipality or that borders the municipality; |
26 | | (E) accounts nominated by the municipality to be added |
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1 | | or deleted from the master list may be submitted to the |
2 | | public utility and related disputes will be resolved; |
3 | | (F) changes may be made to the master list; and |
4 | | (G) the utility may file a master list based solely on |
5 | | its records if the municipality fails to participate and |
6 | | such a municipality may request to restart the process |
7 | | prior to the end of the 5-year five-year cycle. |
8 | | (2) No public utility is liable for any error in tax |
9 | | collections or payments due more than 60 days after the date |
10 | | that the first master list for the relevant municipality is |
11 | | filed with the Department of Revenue unless such error in tax |
12 | | collection or payment: |
13 | | (A) was related to a premises address on the master |
14 | | list at the time of the error; |
15 | | (B) was related to an area of the municipality annexed |
16 | | on or after March 17, 2023 ( the effective date of Public |
17 | | Act 102-1144) this amendatory Act of the 102nd General |
18 | | Assembly , notice of which was properly provided to the |
19 | | public utility pursuant to the procedures set forth in |
20 | | subsection (e); or |
21 | | (C) resulted from the public utility's failure to |
22 | | comply with the process established in this subsection |
23 | | (e-10). |
24 | | (3) If the public utility uses a portal as set forth in |
25 | | subsection (e-5), all lists, changes affecting tax collection |
26 | | and remission, proposed corrections, and reports shall be |
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1 | | provided through such portal. |
2 | | (e-15) If a customer paid a tax to a municipality that the |
3 | | customer did not owe or was in excess of the tax the customer |
4 | | owed, then the customer may, to the extent allowed by Section |
5 | | 9-252 of the Public Utilities Act, recover the tax or over |
6 | | payment from the public utility, and any amount so paid by the |
7 | | public utility may be deducted by that public utility from any |
8 | | taxes then or thereafter owed by the public utility to that |
9 | | municipality. |
10 | | (e-20) (1) Any court of competent jurisdiction The |
11 | | Department of Revenue shall have the authority to resolve a |
12 | | claim by a municipality that a public utility materially |
13 | | failed to comply with the requirements of subsections (b) or |
14 | | (c) of this Section or the process developed under subsection |
15 | | (e-10) of this Section. If a court the Department of Revenue |
16 | | finds, after notice and hearing, that a public utility (i) |
17 | | caused a material delay in providing information properly |
18 | | requested under such subsections or (ii) omitted a material |
19 | | portion of information properly requested, then , if the claim |
20 | | relates to subsections (b) or (c), the court Department shall |
21 | | assess a penalty on the utility of up to $50,000 per audit, or |
22 | | up to $10,000 per audit for a utility that served less than |
23 | | 100,000 retail customers on the date of the audit notice, or, |
24 | | if the claim relates to subsection (e-10), up to $50,000 per |
25 | | 5-year master list cycle or up to $10,000 per cycle for a |
26 | | utility that served less than 100,000 retail customers on the |
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1 | | date such master list was filed with the Department, which |
2 | | penalty shall be paid by the public utility to the |
3 | | municipality Department of Revenue for deposit into the |
4 | | Supplemental Low-Income Energy Assistance Fund . |
5 | | Notwithstanding anything to the contrary, a penalty assessed |
6 | | pursuant to this subsection shall be the exclusive remedy for |
7 | | the conduct that is the subject of the claim. A penalty |
8 | | assessed under this subsection shall bar and prohibit pursuit |
9 | | of any other penalty, fine, or recovery related to the conduct |
10 | | for which the penalty was assessed. |
11 | | (2) No penalty shall be assessed by the Department |
12 | | pursuant to this subsection if the Department finds that a |
13 | | delay or omission was immaterial or de minimis. |
14 | | (3) Any penalties or fines paid by a public utility |
15 | | pursuant to this subsection shall not be recoverable through |
16 | | the utility's rates. |
17 | | (4) (Blank). If a municipality and public utility have a |
18 | | disagreement regarding the scope or conduct of an audit |
19 | | undertaken pursuant to this Section, they shall work together |
20 | | in good faith to attempt to resolve the dispute. If, after a |
21 | | period of no less than 14 days, the municipality and public |
22 | | utility are not able to reach an agreement regarding the |
23 | | dispute, either entity, or both entities jointly, may submit a |
24 | | request to the Illinois Department of Revenue seeking |
25 | | resolution of the dispute, and the Department shall have the |
26 | | authority to resolve the issue, and shall resolve such dispute |
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1 | | within 60 days. Each such request must include a statement |
2 | | showing that consultation and reasonable attempts to resolve |
3 | | the dispute have failed. |
4 | | The time period established pursuant to this Section for |
5 | | complying with requests for information under this Section |
6 | | shall be suspended during the dispute resolution processes set |
7 | | forth in this paragraph (4) of subsection (e-20), but only for |
8 | | the issue or issues that are the subject of the dispute. |
9 | | Information requests that are undisputed shall continue to be |
10 | | subject to the time periods for compliance set forth in this |
11 | | Section. |
12 | | (f) All account-specific account specific and |
13 | | premises-specific information provided by a public utility |
14 | | under this Section may be used only for the purpose of an audit |
15 | | of taxes conducted under this Section and the enforcement of |
16 | | any related tax claim. All such information must be held in |
17 | | strict confidence by the municipality
and its agents and may |
18 | | not be disclosed to the public under the Freedom of |
19 | | Information Act or under any other similar statutes allowing |
20 | | for or requiring public disclosure. |
21 | | (g) The provisions of this Section shall not be construed |
22 | | as diminishing or replacing any civil remedy available to a |
23 | | municipality, taxpayer, or tax collector. |
24 | | (h) This Section does not apply to any municipality having |
25 | | a population greater than 1,000,000.
|
26 | | (i) The changes to subsection (e) and paragraph (2) of |
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1 | | subsection (e-10) of this Section made by Public Act 102-1144 |
2 | | this amendatory Act of the 102nd General Assembly apply to |
3 | | taxes due on or after August 1, 2022. The remaining changes to |
4 | | this Section made by Public Act 102-1144 this amendatory Act |
5 | | of the 102nd General Assembly apply on or after March 17, 2023 |
6 | | ( the effective date of Public Act 102-1144) this amendatory |
7 | | Act of the 102nd General Assembly . |
8 | | (j) As used in this Section: |
9 | | "Customer-specific information" means the name, phone |
10 | | number, email address, and banking information of a customer. |
11 | | "Customer-specific information" includes the load-shape data |
12 | | associated with a customer account. "Customer-specific |
13 | | information" does not include the tax-exempt status of the |
14 | | premises and the name of tax-exempt tax exempt customers. |
15 | | "Premises-specific information" means any information, |
16 | | including billing and usage data, associated with a premises |
17 | | address that is not customer-specific information. |
18 | | "Premises address" includes the jurisdiction to which the |
19 | | address is currently coded by the public utility for municipal |
20 | | tax purposes. |
21 | | (Source: P.A. 102-1144, eff. 3-17-23; revised 4-5-23.) |
22 | | ARTICLE 35. RIVER EDGE ZONES |
23 | | Section 35-5. The River Edge Redevelopment Zone Act is |
24 | | amended by changing Section 10-5.3 as follows: |
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1 | | (65 ILCS 115/10-5.3)
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2 | | Sec. 10-5.3. Certification of River Edge Redevelopment |
3 | | Zones. |
4 | | (a) Approval of designated River Edge Redevelopment Zones |
5 | | shall be made by the Department by certification of the |
6 | | designating ordinance. The Department shall promptly issue a |
7 | | certificate for each zone upon its approval. The certificate |
8 | | shall be signed by the Director of the Department, shall make |
9 | | specific reference to the designating ordinance, which shall |
10 | | be attached thereto, and shall be filed in the office of the |
11 | | Secretary of State. A certified copy of the River Edge |
12 | | Redevelopment Zone Certificate, or a duplicate original |
13 | | thereof, shall be recorded in the office of the recorder of |
14 | | deeds of the county in which the River Edge Redevelopment Zone |
15 | | lies. |
16 | | (b) A River Edge Redevelopment Zone shall be effective |
17 | | upon its certification. The Department shall transmit a copy |
18 | | of the certification to the Department of Revenue, and to the |
19 | | designating municipality.
Upon certification of a River Edge |
20 | | Redevelopment Zone, the terms and provisions of the |
21 | | designating ordinance shall be in effect, and may not be |
22 | | amended or repealed except in accordance with Section 10-5.4. |
23 | | (c) A River Edge Redevelopment Zone shall be in effect for |
24 | | the period stated in the certificate, which shall in no event |
25 | | exceed 30 calendar years. Zones shall terminate at midnight of |
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1 | | December 31 of the final calendar year of the certified term, |
2 | | except as provided in Section 10-5.4. |
3 | | (d) In calendar years 2006 and 2007, the Department may |
4 | | certify one pilot River Edge Redevelopment Zone in the City of |
5 | | East St. Louis, one pilot River Edge Redevelopment Zone in the |
6 | | City of Rockford, and one pilot River Edge Redevelopment Zone |
7 | | in the City of Aurora. |
8 | | In calendar year 2009, the Department may certify one |
9 | | pilot River Edge Redevelopment Zone in the City of Elgin. |
10 | | On or after the effective date of this amendatory Act of |
11 | | the 97th General Assembly, the Department may certify one |
12 | | additional pilot River Edge Redevelopment Zone in the City of |
13 | | Peoria. |
14 | | On or after the effective date of this amendatory Act of |
15 | | the 103rd General Assembly, the Department may certify 2 |
16 | | additional pilot River Edge Redevelopment Zones, including one |
17 | | in the City of Joliet and one in the City of Kankakee. |
18 | | After certifying the additional pilot River Edge |
19 | | Redevelopment Zones authorized by the above paragraphs, |
20 | | Thereafter the Department may not certify any additional River |
21 | | Edge Redevelopment Zones, but it may amend and rescind |
22 | | certifications of existing River Edge Redevelopment Zones in |
23 | | accordance with Section 10-5.4, except that no River Edge |
24 | | Redevelopment Zone may be extended on or after the effective |
25 | | date of this amendatory Act of the 97th General Assembly. Each |
26 | | River Edge Redevelopment Zone in existence on the effective |
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1 | | date of this amendatory Act of the 97th General Assembly shall |
2 | | continue until its scheduled termination under this Act, |
3 | | unless the Zone is decertified sooner. At the time of its term |
4 | | expiration each River Edge Redevelopment Zone will become an |
5 | | open enterprise zone, available for the previously designated |
6 | | area or a different area to compete for designation as an |
7 | | enterprise zone. No preference for designation as a Zone will |
8 | | be given to the previously designated area. |
9 | | (e) A municipality in which a River Edge Redevelopment |
10 | | Zone has been certified must submit to the Department, within |
11 | | 60 days after the certification, a plan for encouraging the |
12 | | participation by minority persons, women, persons with |
13 | | disabilities, and veterans in the zone. The Department may |
14 | | assist the municipality in developing and implementing the |
15 | | plan. The terms "minority person", "woman", and "person with a |
16 | | disability" have the meanings set forth under Section 2 of the |
17 | | Business Enterprise for Minorities, Women, and Persons with |
18 | | Disabilities Act. "Veteran" means an Illinois resident who is |
19 | | a veteran as defined in subsection (h) of Section 1491 of Title |
20 | | 10 of the United States Code.
|
21 | | (Source: P.A. 100-391, eff. 8-25-17.) |
22 | | ARTICLE 40. HISTORIC PRESERVATION |
23 | | Section 40-5. The Illinois Income Tax Act is amended by |
24 | | changing Section 228 as follows: |
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1 | | (35 ILCS 5/228) |
2 | | Sec. 228. Historic preservation credit. For
tax years |
3 | | beginning on or after January 1, 2019 and ending on
or before |
4 | | December 31, 2028 December 31, 2023 , a taxpayer who qualifies |
5 | | for a
credit under the Historic Preservation Tax Credit Act is |
6 | | entitled to a credit against the taxes
imposed under |
7 | | subsections (a) and (b) of Section 201 of this
Act as provided |
8 | | in that Act. If the taxpayer is a partnership,
Subchapter S |
9 | | corporation, or a limited liability company the credit shall |
10 | | be allowed to the
partners, shareholders, or members in |
11 | | accordance with the determination
of income and distributive |
12 | | share of income under Sections 702
and 704 and Subchapter S of |
13 | | the Internal Revenue Code provided that credits granted to a |
14 | | partnership, a limited liability company taxed as a |
15 | | partnership, or other multiple owners of property shall be |
16 | | passed through to the partners, members, or owners |
17 | | respectively on a pro rata basis or pursuant to an executed |
18 | | agreement among the partners, members, or owners documenting |
19 | | any alternate distribution method.
If the amount of any tax |
20 | | credit awarded under this Section
exceeds the qualified |
21 | | taxpayer's income tax liability for the
year in which the |
22 | | qualified rehabilitation plan was placed in
service, the |
23 | | excess amount may be carried forward as
provided in the |
24 | | Historic Preservation Tax Credit Act.
|
25 | | (Source: P.A. 101-81, eff. 7-12-19; 102-741, eff. 5-6-22.) |
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1 | | Section 40-10. The Historic Preservation Tax Credit Act is |
2 | | amended by changing Sections 10 and 20 as follows: |
3 | | (35 ILCS 31/10)
|
4 | | Sec. 10. Allowable credit. |
5 | | (a) To the extent authorized by this Act, for taxable |
6 | | years beginning on or after January 1, 2019 and ending on or |
7 | | before December 31, 2028 December 31, 2023 , there shall be |
8 | | allowed a tax credit to the qualified taxpayer against the tax |
9 | | imposed by subsections (a) and (b) of Section 201 of the |
10 | | Illinois Income Tax Act in an aggregate amount equal to 25% of |
11 | | qualified expenditures, but not to exceed $3,000,000, incurred |
12 | | undertaking a qualified rehabilitation plan, provided that the |
13 | | total amount of such expenditures must (i) equal $5,000 or |
14 | | more and (ii) exceed the adjusted basis of the structure on the |
15 | | first day the qualified rehabilitation plan commenced. If the |
16 | | qualified rehabilitation plan spans multiple years, the |
17 | | aggregate credit for the entire project shall be allowed in |
18 | | the last taxable year. |
19 | | (b) To obtain a tax credit certificate pursuant to this |
20 | | Section, the qualified taxpayer must apply with the Division. |
21 | | The Division shall determine the amount of eligible |
22 | | rehabilitation expenditures within 45 days after receipt of a |
23 | | complete application. The taxpayer must provide to the |
24 | | Division a third-party cost certification conducted by a |
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1 | | certified public accountant verifying (i) the qualified and |
2 | | non-qualified rehabilitation expenses and (ii) that the |
3 | | qualified expenditures exceed the adjusted basis of the |
4 | | structure on the first day the qualified rehabilitation plan |
5 | | commenced. The accountant shall provide appropriate review and |
6 | | testing of invoices. The Division is authorized, but not |
7 | | required, to accept this third-party cost certification to |
8 | | determine the amount of qualified expenditures. The Division |
9 | | and the National Park Service shall determine whether the |
10 | | rehabilitation is consistent with the Standards of the |
11 | | Secretary of the United States Department of the Interior. |
12 | | (c) If the amount of any tax credit awarded under this Act |
13 | | exceeds the qualified taxpayer's income tax liability for the |
14 | | year in which the qualified rehabilitation plan was placed in |
15 | | service, the excess amount may be carried forward for |
16 | | deduction from the taxpayer's income tax liability in the next |
17 | | succeeding year or years until the total amount of the credit |
18 | | has been used, except that a credit may not be carried forward |
19 | | for deduction after the tenth taxable year after the taxable |
20 | | year in which the qualified rehabilitation plan was placed in |
21 | | service. Upon completion of the project and approval of the |
22 | | complete application, the Division shall issue a single |
23 | | certificate in the amount of the
eligible credits equal to 25% |
24 | | of the qualified expenditures incurred during the eligible |
25 | | taxable years, not to exceed the lesser of the allocated |
26 | | amount or $3,000,000 per single qualified rehabilitation plan. |
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1 | | Prior to the issuance of the tax credit certificate, the |
2 | | qualified taxpayer must provide to the Division verification |
3 | | that the rehabilitated structure is a qualified historic |
4 | | structure. At the time the certificate is issued, an issuance |
5 | | fee up to the maximum amount of 2% of the amount of the credits |
6 | | issued by the certificate may be collected from the qualified |
7 | | taxpayer to administer the Act. If collected, this issuance |
8 | | fee shall be directed to the Division Historic Property |
9 | | Administrative Fund or other such fund as appropriate for use |
10 | | of the Division in the administration of the Historic |
11 | | Preservation Tax Credit Program. The taxpayer must attach the |
12 | | certificate or legal documentation of her or his proportional |
13 | | share of the certificate to the tax
return on which the credits |
14 | | are to be claimed. The tax credit under this Section may not |
15 | | reduce the taxpayer's liability to less than zero. If the |
16 | | amount of the credit exceeds the tax liability for the year, |
17 | | the excess credit may be carried forward and applied to the tax |
18 | | liability of the 10 taxable years following the first excess |
19 | | credit year. The taxpayer is not eligible to receive credits |
20 | | under this Section and under Section 221 of the Illinois |
21 | | Income Tax Act for the same qualified expenditures or |
22 | | qualified rehabilitation plan. |
23 | | (d) If the taxpayer is (i) a corporation having an |
24 | | election in effect under Subchapter S of the federal Internal |
25 | | Revenue Code, (ii) a partnership, or (iii) a limited liability |
26 | | company, the credit provided under this Act may be claimed by |
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1 | | the shareholders of the corporation, the partners of the |
2 | | partnership, or the members of the limited liability company |
3 | | in the same manner as those shareholders, partners, or members |
4 | | account for their proportionate shares of the income or losses |
5 | | of the corporation, partnership, or limited liability company, |
6 | | or as provided in the bylaws or other executed agreement of the |
7 | | corporation, partnership, or limited liability company. |
8 | | Credits granted to a partnership, a limited liability company |
9 | | taxed as a partnership, or other multiple owners of property |
10 | | shall be passed through to the partners, members, or owners |
11 | | respectively on a pro rata basis or pursuant to an executed |
12 | | agreement among the partners, members, or owners documenting |
13 | | any alternate distribution method. |
14 | | (e) If a recapture event occurs during the recapture |
15 | | period with respect to a qualified historic structure, then |
16 | | for any taxable year in which the credits are allowed as |
17 | | specified in this Act, the tax under the applicable Section of |
18 | | this Act shall be increased by applying the recapture |
19 | | percentage set forth below to the tax decrease resulting from |
20 | | the application of credits allowed under this Act to the |
21 | | taxable year in question. |
22 | | For the purposes of this subsection, the recapture |
23 | | percentage shall be determined as follows: |
24 | | (1) if the recapture event occurs within the first |
25 | | year after commencement of the recapture period, then the |
26 | | recapture percentage is 100%; |
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1 | | (2) if the recapture event occurs within the second |
2 | | year after commencement of the recapture period, then the |
3 | | recapture percentage is 80%; |
4 | | (3) if the recapture event occurs within the third |
5 | | year after commencement of the recapture period, then the |
6 | | recapture percentage is 60%; |
7 | | (4) if the recapture event occurs within the fourth |
8 | | year after commencement of the recapture period, then the |
9 | | recapture percentage is 40%; and |
10 | | (5) if the recapture event occurs within the fifth |
11 | | year after commencement of the recapture period, then the |
12 | | recapture percentage is 20%.
|
13 | | In the case of any recapture event, the carryforwards |
14 | | under this Act shall be adjusted by reason of such event. |
15 | | (f) The Division may adopt rules to implement this Section |
16 | | in addition to the rules expressly authorized herein.
|
17 | | (Source: P.A. 101-81, eff. 7-12-19; 102-741, eff. 5-6-22.) |
18 | | (35 ILCS 31/20)
|
19 | | Sec. 20. Limitations, reporting, and monitoring. |
20 | | (a) In each every calendar year beginning on or after |
21 | | January 1, 2019 and ending on or before December 31, 2023 that |
22 | | this program is in effect , the Division is authorized to |
23 | | allocate $15,000,000 in tax credits in addition to any |
24 | | unallocated, returned, or rescinded allocations from previous |
25 | | years, pursuant to qualified rehabilitation plans. In each |
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1 | | calendar year beginning on or after January 1, 2024 and ending |
2 | | on or before December 31, 2028, the Division is authorized to |
3 | | allocate $25,000,000 in tax credits in addition to any |
4 | | unallocated, returned, or rescinded allocations from previous |
5 | | years, pursuant to qualified rehabilitation plans. The |
6 | | Division shall not allocate or award more than $3,000,000 in |
7 | | tax credits with regard to a single qualified rehabilitation |
8 | | plan. In allocating tax credits under this Act, the Division |
9 | | must prioritize applications that meet one or more of the |
10 | | following: |
11 | | (1) the structure is located in a county that borders |
12 | | a State with a historic income-producing property |
13 | | rehabilitation credit; |
14 | | (2) the structure was previously owned by a federal, |
15 | | state, or local governmental entity for no less than 6 |
16 | | months; |
17 | | (3) the structure is located in a census tract that |
18 | | has a median family income at or below the State median |
19 | | family income; data from the most recent 5-year estimate |
20 | | from the American Community Survey (ACS), published by the |
21 | | U.S. Census Bureau, shall be used to determine |
22 | | eligibility; |
23 | | (4) the qualified rehabilitation plan includes in the |
24 | | development partnership a Community Development Entity or |
25 | | a low-profit (B Corporation) or not-for-profit |
26 | | organization, as defined by Section 501(c)(3) of the |
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1 | | Internal Revenue Code; or |
2 | | (5) the structure is located in an area declared under |
3 | | an Emergency Declaration or Major Disaster Declaration |
4 | | under the federal Robert T. Stafford Disaster Relief and |
5 | | Emergency Assistance Act. The declaration must be no older |
6 | | than 3 years at the time of application. |
7 | | (b) The annual aggregate authorization of $15,000,000 set |
8 | | forth in subsection (a) shall be allocated by the Division, in |
9 | | such proportion as determined by the Director twice in each |
10 | | calendar year that the program is in effect, provided that the |
11 | | amount initially allocated by the Division for the first |
12 | | calendar year application period shall not exceed 65% of the |
13 | | total amount available for allocation. Any unallocated amount |
14 | | remaining as of the end of the second application period of a |
15 | | given calendar year shall be rolled over and added to the total |
16 | | authorized amount for the next available calendar year. The |
17 | | qualified rehabilitation plan must meet a readiness test, as |
18 | | defined by the Division, in order for the application to |
19 | | qualify. In any given application period, applications that |
20 | | qualify under this Act will be prioritized as set forth in |
21 | | subsection (a) and placed in a queue based on the date and time |
22 | | the application is received. Applicants whose applications |
23 | | qualify but do not receive an allocation must reapply to be |
24 | | considered in subsequent application periods. |
25 | | (c) Subject to appropriation to the Division, moneys in |
26 | | the Historic Property Administrative Fund shall be used, on a |
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1 | | biennial basis, beginning at the end of the second fiscal year |
2 | | after the effective date of this Act, to hire a qualified third |
3 | | party to prepare a biennial report to assess the overall |
4 | | impact of this Act from the qualified rehabilitation plans |
5 | | under this Act completed in that year and in previous years. |
6 | | Baseline data of the metrics in the report shall be collected |
7 | | at the initiation of a qualified rehabilitation plan. The |
8 | | overall economic impact shall include at least: |
9 | | (1) the number of applications, project locations, and |
10 | | proposed use of qualified historic structures; |
11 | | (2) the amount of credits awarded and the number and |
12 | | location of projects receiving credit allocations; |
13 | | (3) the status of ongoing projects and projected |
14 | | qualifying expenditures for ongoing projects;
|
15 | | (4) for completed projects, the total amount of |
16 | | qualifying rehabilitation expenditures and non-qualifying |
17 | | expenditures, the number of housing units created and the |
18 | | number of housing units that qualify as affordable, and |
19 | | the total square footage rehabilitated and developed; |
20 | | (5) direct, indirect, and induced economic impacts; |
21 | | (6) temporary, permanent, and construction jobs |
22 | | created; and |
23 | | (7) sales, income, and property tax generation before |
24 | | construction, during construction, and after completion. |
25 | | The report to the General Assembly shall be filed with the |
26 | | Clerk of the House of Representatives and the Secretary of the |
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1 | | Senate in electronic form only, in the manner that the Clerk |
2 | | and the Secretary shall direct. |
3 | | (d) Any time prior to issuance of a tax credit |
4 | | certificate, the Director of the Division, the State Historic |
5 | | Preservation Officer, or staff of the Division may, upon |
6 | | reasonable notice of not less than 3 business days, conduct a |
7 | | site visit to the project to inspect and evaluate the project. |
8 | | (e) Any time prior to the issuance of a tax credit |
9 | | certificate, the Director may, upon reasonable notice of not |
10 | | less than 30 calendar days, request a status report from the |
11 | | Applicant consisting of information and updates relevant to |
12 | | the status of the project. Status reports shall not be |
13 | | requested more than twice yearly. |
14 | | (f) In order to demonstrate sufficient evidence of |
15 | | reviewable progress within 12 months after the date the |
16 | | Applicant received notification of allocation from the |
17 | | Division, the Director may require the Applicant to provide |
18 | | all of the following: |
19 | | (1) a viable financial plan which demonstrates by way |
20 | | of an executed agreement that all financing has been |
21 | | secured for the project; such financing shall include, but |
22 | | not be limited to, equity investment as demonstrated by |
23 | | letters of commitment from the owner of the property, |
24 | | investment partners, and equity investors; |
25 | | (2) (blank); and |
26 | | (3) all historic approvals, including all federal and |
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1 | | State rehabilitation documents required by the Division. |
2 | | The Director shall review the submitted evidence and may |
3 | | request additional documentation from the Applicant if |
4 | | necessary. The Applicant will have 30 calendar days to provide |
5 | | the information requested, otherwise the allocation may be |
6 | | rescinded at the discretion of the Director. |
7 | | (g) In order to demonstrate sufficient evidence of |
8 | | reviewable progress within 24 months after the date the |
9 | | application received notification of approval from the |
10 | | Division, the Director may require the Applicant to provide |
11 | | detailed evidence that the Applicant has secured and closed on |
12 | | financing for the complete scope of rehabilitation for the |
13 | | project. To demonstrate evidence that the Applicant has |
14 | | secured and closed on financing, the Applicant will need to |
15 | | provide signed and processed loan agreements, bank financing |
16 | | documents or other legal and contractual evidence to |
17 | | demonstrate that adequate financing is available to complete |
18 | | the project. The Director shall review the submitted evidence |
19 | | and may request additional documentation from the Applicant if |
20 | | necessary. The Applicant will have 30 calendar days to provide |
21 | | the information requested, otherwise the allocation may be |
22 | | rescinded at the discretion of the Director. |
23 | | If the Applicant fails to document reviewable progress |
24 | | within 24 months of approval, the Director may notify the |
25 | | Applicant that the allocation is rescinded. However, should |
26 | | financing and construction be imminent, the Director may elect |
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1 | | to grant the Applicant no more than 5 months to close on |
2 | | financing and commence construction. If the Applicant fails to |
3 | | meet these conditions in the required timeframe, the Director |
4 | | shall notify the Applicant that the allocation is rescinded. |
5 | | Any such rescinded allocation shall be added to the aggregate |
6 | | amount of credits available for allocation for the year in |
7 | | which the forfeiture occurred. |
8 | | The amount of the qualified expenditures identified in the |
9 | | qualified taxpayer's certification of completion and reflected |
10 | | on the Historic Preservation Tax Credit certificate issued by |
11 | | the Director is subject to inspection, examination, and audit |
12 | | by the Department of Revenue. |
13 | | The qualified taxpayer shall establish and maintain for a |
14 | | period of 4 years following the effective date on a project tax |
15 | | credit certificate such records as required by the Director. |
16 | | Such records include, but are not limited to, records |
17 | | documenting project expenditures and compliance with the U.S. |
18 | | Secretary of the Interior's Standards. The qualified taxpayer |
19 | | shall make such records available for review and verification |
20 | | by the Director, the State Historic Preservation Officer, the |
21 | | Department of Revenue, or appropriate staff, as well as other |
22 | | appropriate State agencies. In the event the Director |
23 | | determines an Applicant has submitted a status report |
24 | | containing erroneous information or data not supported by |
25 | | records established and maintained under this Act, the |
26 | | Director may, after providing notice, require the Applicant to |
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1 | | resubmit corrected reports.
|
2 | | (Source: P.A. 102-741, eff. 5-6-22.) |
3 | | ARTICLE 45. HIGH IMPACT BUSINESSES |
4 | | Section 45-5. The Illinois Enterprise Zone Act is amended |
5 | | by changing Section 5.5 as follows:
|
6 | | (20 ILCS 655/5.5)
(from Ch. 67 1/2, par. 609.1)
|
7 | | Sec. 5.5. High Impact Business.
|
8 | | (a) In order to respond to unique opportunities to assist |
9 | | in the
encouragement, development, growth, and expansion of |
10 | | the private sector through
large scale investment and |
11 | | development projects, the Department is authorized
to receive |
12 | | and approve applications for the designation of "High Impact
|
13 | | Businesses" in Illinois, for an initial term of 20 years with |
14 | | an option for renewal for a term not to exceed 20 years, |
15 | | subject to the following conditions:
|
16 | | (1) such applications may be submitted at any time |
17 | | during the year;
|
18 | | (2) such business is not located, at the time of |
19 | | designation, in
an enterprise zone designated pursuant to |
20 | | this Act;
|
21 | | (3) the business intends to do one or more of the |
22 | | following:
|
23 | | (A) the business intends to make a minimum |
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1 | | investment of
$12,000,000 which will be placed in |
2 | | service in qualified property and
intends to create |
3 | | 500 full-time equivalent jobs at a designated location
|
4 | | in Illinois or intends to make a minimum investment of |
5 | | $30,000,000 which
will be placed in service in |
6 | | qualified property and intends to retain 1,500
|
7 | | full-time retained jobs at a designated location in |
8 | | Illinois.
The terms "placed in service" and
"qualified |
9 | | property" have the same meanings as described in |
10 | | subsection (h)
of Section 201 of the Illinois Income |
11 | | Tax Act; or
|
12 | | (B) the business intends to establish a new |
13 | | electric generating
facility at a designated location |
14 | | in Illinois. "New electric generating
facility", for |
15 | | purposes of this Section, means a newly constructed
|
16 | | electric
generation plant
or a newly constructed |
17 | | generation capacity expansion at an existing electric
|
18 | | generation
plant, including the transmission lines and |
19 | | associated
equipment that transfers electricity from |
20 | | points of supply to points of
delivery, and for which |
21 | | such new foundation construction commenced not sooner
|
22 | | than July 1,
2001. Such facility shall be designed to |
23 | | provide baseload electric
generation and shall operate |
24 | | on a continuous basis throughout the year;
and (i) |
25 | | shall have an aggregate rated generating capacity of |
26 | | at least 1,000
megawatts for all new units at one site |
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1 | | if it uses natural gas as its primary
fuel and |
2 | | foundation construction of the facility is commenced |
3 | | on
or before December 31, 2004, or shall have an |
4 | | aggregate rated generating
capacity of at least 400 |
5 | | megawatts for all new units at one site if it uses
coal |
6 | | or gases derived from coal
as its primary fuel and
|
7 | | shall support the creation of at least 150 new |
8 | | Illinois coal mining jobs, or
(ii) shall be funded |
9 | | through a federal Department of Energy grant before |
10 | | December 31, 2010 and shall support the creation of |
11 | | Illinois
coal-mining
jobs, or (iii) shall use coal |
12 | | gasification or integrated gasification-combined cycle |
13 | | units
that generate
electricity or chemicals, or both, |
14 | | and shall support the creation of Illinois
coal-mining
|
15 | | jobs.
The term "placed in service" has
the same |
16 | | meaning as described in subsection
(h) of Section 201 |
17 | | of the Illinois Income Tax Act; or
|
18 | | (B-5) the business intends to establish a new |
19 | | gasification
facility at a designated location in |
20 | | Illinois. As used in this Section, "new gasification |
21 | | facility" means a newly constructed coal gasification |
22 | | facility that generates chemical feedstocks or |
23 | | transportation fuels derived from coal (which may |
24 | | include, but are not limited to, methane, methanol, |
25 | | and nitrogen fertilizer), that supports the creation |
26 | | or retention of Illinois coal-mining jobs, and that |
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1 | | qualifies for financial assistance from the Department |
2 | | before December 31, 2010. A new gasification facility |
3 | | does not include a pilot project located within |
4 | | Jefferson County or within a county adjacent to |
5 | | Jefferson County for synthetic natural gas from coal; |
6 | | or |
7 | | (C) the business intends to establish
production |
8 | | operations at a new coal mine, re-establish production |
9 | | operations at
a closed coal mine, or expand production |
10 | | at an existing coal mine
at a designated location in |
11 | | Illinois not sooner than July 1, 2001;
provided that |
12 | | the
production operations result in the creation of |
13 | | 150 new Illinois coal mining
jobs as described in |
14 | | subdivision (a)(3)(B) of this Section, and further
|
15 | | provided that the coal extracted from such mine is |
16 | | utilized as the predominant
source for a new electric |
17 | | generating facility.
The term "placed in service" has
|
18 | | the same meaning as described in subsection (h) of |
19 | | Section 201 of the
Illinois Income Tax Act; or
|
20 | | (D) the business intends to construct new |
21 | | transmission facilities or
upgrade existing |
22 | | transmission facilities at designated locations in |
23 | | Illinois,
for which construction commenced not sooner |
24 | | than July 1, 2001. For the
purposes of this Section, |
25 | | "transmission facilities" means transmission lines
|
26 | | with a voltage rating of 115 kilovolts or above, |
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1 | | including associated
equipment, that transfer |
2 | | electricity from points of supply to points of
|
3 | | delivery and that transmit a majority of the |
4 | | electricity generated by a new
electric generating |
5 | | facility designated as a High Impact Business in |
6 | | accordance
with this Section. The term "placed in |
7 | | service" has the
same meaning as described in |
8 | | subsection (h) of Section 201 of the Illinois
Income |
9 | | Tax Act; or
|
10 | | (E) the business intends to establish a new wind |
11 | | power facility at a designated location in Illinois. |
12 | | For purposes of this Section, "new wind power |
13 | | facility" means a newly constructed electric |
14 | | generation facility, a newly constructed expansion of |
15 | | an existing electric generation facility, or the |
16 | | replacement of an existing electric generation |
17 | | facility, including the demolition and removal of an |
18 | | electric generation facility irrespective of whether |
19 | | it will be replaced, placed in service or replaced on |
20 | | or after July 1, 2009, that generates electricity |
21 | | using wind energy devices, and such facility shall be |
22 | | deemed to include any permanent structures associated |
23 | | with the electric generation facility and all |
24 | | associated transmission lines, substations, and other |
25 | | equipment related to the generation of electricity |
26 | | from wind energy devices. For purposes of this |
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1 | | Section, "wind energy device" means any device, with a |
2 | | nameplate capacity of at least 0.5 megawatts, that is |
3 | | used in the process of converting kinetic energy from |
4 | | the wind to generate electricity; or |
5 | | (E-5) the business intends to establish a new |
6 | | utility-scale solar facility at a designated location |
7 | | in Illinois. For purposes of this Section, "new |
8 | | utility-scale solar power facility" means a newly |
9 | | constructed electric generation facility, or a newly |
10 | | constructed expansion of an existing electric |
11 | | generation facility, placed in service on or after |
12 | | July 1, 2021, that (i) generates electricity using |
13 | | photovoltaic cells and (ii) has a nameplate capacity |
14 | | that is greater than 5,000 kilowatts, and such |
15 | | facility shall be deemed to include all associated |
16 | | transmission lines, substations, energy storage |
17 | | facilities, and other equipment related to the |
18 | | generation and storage of electricity from |
19 | | photovoltaic cells; or |
20 | | (F) the business commits to (i) make a minimum |
21 | | investment of $500,000,000, which will be placed in |
22 | | service in a qualified property, (ii) create 125 |
23 | | full-time equivalent jobs at a designated location in |
24 | | Illinois, (iii) establish a fertilizer plant at a |
25 | | designated location in Illinois that complies with the |
26 | | set-back standards as described in Table 1: Initial |
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1 | | Isolation and Protective Action Distances in the 2012 |
2 | | Emergency Response Guidebook published by the United |
3 | | States Department of Transportation, (iv) pay a |
4 | | prevailing wage for employees at that location who are |
5 | | engaged in construction activities, and (v) secure an |
6 | | appropriate level of general liability insurance to |
7 | | protect against catastrophic failure of the fertilizer |
8 | | plant or any of its constituent systems; in addition, |
9 | | the business must agree to enter into a construction |
10 | | project labor agreement including provisions |
11 | | establishing wages, benefits, and other compensation |
12 | | for employees performing work under the project labor |
13 | | agreement at that location; for the purposes of this |
14 | | Section, "fertilizer plant" means a newly constructed |
15 | | or upgraded plant utilizing gas used in the production |
16 | | of anhydrous ammonia and downstream nitrogen |
17 | | fertilizer products for resale; for the purposes of |
18 | | this Section, "prevailing wage" means the hourly cash |
19 | | wages plus fringe benefits for training and
|
20 | | apprenticeship programs approved by the U.S. |
21 | | Department of Labor, Bureau of
Apprenticeship and |
22 | | Training, health and welfare, insurance, vacations and
|
23 | | pensions paid generally, in the
locality in which the |
24 | | work is being performed, to employees engaged in
work |
25 | | of a similar character on public works; this paragraph |
26 | | (F) applies only to businesses that submit an |
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1 | | application to the Department within 60 days after |
2 | | July 25, 2013 (the effective date of Public Act |
3 | | 98-109); or and |
4 | | (G) the business intends to establish a new |
5 | | cultured cell material food production facility at a |
6 | | designated location in Illinois. As used in this |
7 | | paragraph (G): |
8 | | "Cultured cell material food production facility" |
9 | | means a facility (i) at which cultured animal cell |
10 | | food is developed using animal cell culture |
11 | | technology, (ii) at which production processes occur |
12 | | that include the establishment of cell lines and cell |
13 | | banks, manufacturing controls, and all components and |
14 | | inputs, and (iii) that complies with all existing |
15 | | registrations, inspections, licensing, and approvals |
16 | | from all applicable and participating State and |
17 | | federal food agencies, including the Department of |
18 | | Agriculture, the Department of Public Health, and the |
19 | | United States Food and Drug Administration, to ensure |
20 | | that all food production is safe and lawful under |
21 | | provisions of the Federal Food, Drug and Cosmetic Act |
22 | | related to the development, production, and storage of |
23 | | cultured animal cell food. |
24 | | "New cultured cell material food production |
25 | | facility" means a newly constructed cultured cell |
26 | | material food production facility that is placed in |
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1 | | service on or after the effective date of this |
2 | | amendatory Act of the 103rd General Assembly or a |
3 | | newly constructed expansion of an existing cultured |
4 | | cell material food production facility, in a |
5 | | controlled environment, when the improvements are |
6 | | placed in service on or after the effective date of |
7 | | this amendatory Act of the 103rd General Assembly; and |
8 | | (4) no later than 90 days after an application is |
9 | | submitted, the
Department shall notify the applicant of |
10 | | the Department's determination of
the qualification of the |
11 | | proposed High Impact Business under this Section.
|
12 | | (b) Businesses designated as High Impact Businesses |
13 | | pursuant to
subdivision (a)(3)(A) of this Section shall |
14 | | qualify for the credits and
exemptions described in the
|
15 | | following Acts: Section 9-222 and Section 9-222.1A of the |
16 | | Public Utilities
Act,
subsection (h)
of Section 201 of the |
17 | | Illinois Income Tax Act,
and Section 1d of
the
Retailers' |
18 | | Occupation Tax Act; provided that these credits and
exemptions
|
19 | | described in these Acts shall not be authorized until the |
20 | | minimum
investments set forth in subdivision (a)(3)(A) of this
|
21 | | Section have been placed in
service in qualified properties |
22 | | and, in the case of the exemptions
described in the Public |
23 | | Utilities Act and Section 1d of the Retailers'
Occupation Tax |
24 | | Act, the minimum full-time equivalent jobs or full-time |
25 | | retained jobs set
forth in subdivision (a)(3)(A) of this |
26 | | Section have been
created or retained.
Businesses designated |
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1 | | as High Impact Businesses under
this Section shall also
|
2 | | qualify for the exemption described in Section 5l of the |
3 | | Retailers' Occupation
Tax Act. The credit provided in |
4 | | subsection (h) of Section 201 of the Illinois
Income Tax Act |
5 | | shall be applicable to investments in qualified property as |
6 | | set
forth in subdivision (a)(3)(A) of this Section.
|
7 | | (b-5) Businesses designated as High Impact Businesses |
8 | | pursuant to
subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C), |
9 | | and (a)(3)(D) , and (a)(3)(G) of this Section shall qualify
for |
10 | | the credits and exemptions described in the following Acts: |
11 | | Section 51 of
the Retailers' Occupation Tax Act, Section 9-222 |
12 | | and Section 9-222.1A of the
Public Utilities Act, and |
13 | | subsection (h) of Section 201 of the Illinois Income
Tax Act; |
14 | | however, the credits and exemptions authorized under Section |
15 | | 9-222 and
Section 9-222.1A of the Public Utilities Act, and |
16 | | subsection (h) of Section 201
of the Illinois Income Tax Act |
17 | | shall not be authorized until the new electric
generating |
18 | | facility, the new gasification facility, the new transmission |
19 | | facility, or the new, expanded, or
reopened coal mine , or the |
20 | | new cultured cell material food production facility is |
21 | | operational,
except that a new electric generating facility |
22 | | whose primary fuel source is
natural gas is eligible only for |
23 | | the exemption under Section 5l of the
Retailers' Occupation |
24 | | Tax Act.
|
25 | | (b-6) Businesses designated as High Impact Businesses |
26 | | pursuant to subdivision (a)(3)(E) or (a)(3)(E-5) of this |
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1 | | Section shall qualify for the exemptions described in Section |
2 | | 5l of the Retailers' Occupation Tax Act; any business so |
3 | | designated as a High Impact Business being, for purposes of |
4 | | this Section, a "Wind Energy Business". |
5 | | (b-7) Beginning on January 1, 2021, businesses designated |
6 | | as High Impact Businesses by the Department shall qualify for |
7 | | the High Impact Business construction jobs credit under |
8 | | subsection (h-5) of Section 201 of the Illinois Income Tax Act |
9 | | if the business meets the criteria set forth in subsection (i) |
10 | | of this Section. The total aggregate amount of credits awarded |
11 | | under the Blue Collar Jobs Act (Article 20 of Public Act 101-9) |
12 | | shall not exceed $20,000,000 in any State fiscal year. |
13 | | (c) High Impact Businesses located in federally designated |
14 | | foreign trade
zones or sub-zones are also eligible for |
15 | | additional credits, exemptions and
deductions as described in |
16 | | the following Acts: Section 9-221 and Section
9-222.1 of the |
17 | | Public
Utilities Act; and subsection (g) of Section 201, and |
18 | | Section 203
of the Illinois Income Tax Act.
|
19 | | (d) Except for businesses contemplated under subdivision |
20 | | (a)(3)(E) , or (a)(3)(E-5) , or (a)(3)(G) of this Section, |
21 | | existing Illinois businesses which apply for designation as a
|
22 | | High Impact Business must provide the Department with the |
23 | | prospective plan
for which 1,500 full-time retained jobs would |
24 | | be eliminated in the event that the
business is not |
25 | | designated.
|
26 | | (e) Except for new businesses wind power facilities |
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1 | | contemplated under subdivision (a)(3)(E) or subdivision |
2 | | (a)(3)(G) of this Section, new proposed facilities which apply |
3 | | for designation as High Impact
Business must provide the |
4 | | Department with proof of alternative non-Illinois
sites which |
5 | | would receive the proposed investment and job creation in the
|
6 | | event that the business is not designated as a High Impact |
7 | | Business.
|
8 | | (f) Except for businesses contemplated under subdivision |
9 | | (a)(3)(E) or subdivision (a)(3)(G) of this Section, in the |
10 | | event that a business is designated a High Impact Business
and |
11 | | it is later determined after reasonable notice and an |
12 | | opportunity for a
hearing as provided under the Illinois |
13 | | Administrative Procedure Act, that
the business would have |
14 | | placed in service in qualified property the
investments and |
15 | | created or retained the requisite number of jobs without
the |
16 | | benefits of the High Impact Business designation, the |
17 | | Department shall
be required to immediately revoke the |
18 | | designation and notify the Director
of the Department of |
19 | | Revenue who shall begin proceedings to recover all
wrongfully |
20 | | exempted State taxes with interest. The business shall also be
|
21 | | ineligible for all State funded Department programs for a |
22 | | period of 10 years.
|
23 | | (g) The Department shall revoke a High Impact Business |
24 | | designation if
the participating business fails to comply with |
25 | | the terms and conditions of
the designation.
|
26 | | (h) Prior to designating a business, the Department shall |
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1 | | provide the
members of the General Assembly and Commission on |
2 | | Government Forecasting and Accountability
with a report |
3 | | setting forth the terms and conditions of the designation and
|
4 | | guarantees that have been received by the Department in |
5 | | relation to the
proposed business being designated.
|
6 | | (i) High Impact Business construction jobs credit. |
7 | | Beginning on January 1, 2021, a High Impact Business may |
8 | | receive a tax credit against the tax imposed under subsections |
9 | | (a) and (b) of Section 201 of the Illinois Income Tax Act in an |
10 | | amount equal to 50% of the amount of the incremental income tax |
11 | | attributable to High Impact Business construction jobs credit |
12 | | employees employed in the course of completing a High Impact |
13 | | Business construction jobs project. However, the High Impact |
14 | | Business construction jobs credit may equal 75% of the amount |
15 | | of the incremental income tax attributable to High Impact |
16 | | Business construction jobs credit employees if the High Impact |
17 | | Business construction jobs credit project is located in an |
18 | | underserved area. |
19 | | The Department shall certify to the Department of Revenue: |
20 | | (1) the identity of taxpayers that are eligible for the High |
21 | | Impact Business construction jobs credit; and (2) the amount |
22 | | of High Impact Business construction jobs credits that are |
23 | | claimed pursuant to subsection (h-5) of Section 201 of the |
24 | | Illinois Income Tax Act in each taxable year. Any business |
25 | | entity that receives a High Impact Business construction jobs |
26 | | credit shall maintain a certified payroll pursuant to |
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1 | | subsection (j) of this Section. |
2 | | As used in this subsection (i): |
3 | | "High Impact Business construction jobs credit" means an |
4 | | amount equal to 50% (or 75% if the High Impact Business |
5 | | construction project is located in an underserved area) of the |
6 | | incremental income tax attributable to High Impact Business |
7 | | construction job employees. The total aggregate amount of |
8 | | credits awarded under the Blue Collar Jobs Act (Article 20 of |
9 | | Public Act 101-9) shall not exceed $20,000,000 in any State |
10 | | fiscal year |
11 | | "High Impact Business construction job employee" means a |
12 | | laborer or worker who is employed by an Illinois contractor or |
13 | | subcontractor in the actual construction work on the site of a |
14 | | High Impact Business construction job project. |
15 | | "High Impact Business construction jobs project" means |
16 | | building a structure or building or making improvements of any |
17 | | kind to real property, undertaken and commissioned by a |
18 | | business that was designated as a High Impact Business by the |
19 | | Department. The term "High Impact Business construction jobs |
20 | | project" does not include the routine operation, routine |
21 | | repair, or routine maintenance of existing structures, |
22 | | buildings, or real property. |
23 | | "Incremental income tax" means the total amount withheld |
24 | | during the taxable year from the compensation of High Impact |
25 | | Business construction job employees. |
26 | | "Underserved area" means a geographic area that meets one |
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1 | | or more of the following conditions: |
2 | | (1) the area has a poverty rate of at least 20% |
3 | | according to the latest American Community Survey; |
4 | | (2) 35% or more of the families with children in the |
5 | | area are living below 130% of the poverty line, according |
6 | | to the latest American Community Survey; |
7 | | (3) at least 20% of the households in the area receive |
8 | | assistance under the Supplemental Nutrition Assistance |
9 | | Program (SNAP); or |
10 | | (4) the area has an average unemployment rate, as |
11 | | determined by the Illinois Department of Employment |
12 | | Security, that is more than 120% of the national |
13 | | unemployment average, as determined by the U.S. Department |
14 | | of Labor, for a period of at least 2 consecutive calendar |
15 | | years preceding the date of the application. |
16 | | (j) Each contractor and subcontractor who is engaged in |
17 | | and executing a High Impact Business Construction jobs |
18 | | project, as defined under subsection (i) of this Section, for |
19 | | a business that is entitled to a credit pursuant to subsection |
20 | | (i) of this Section shall: |
21 | | (1) make and keep, for a period of 5 years from the |
22 | | date of the last payment made on or after June 5, 2019 (the |
23 | | effective date of Public Act 101-9) on a contract or |
24 | | subcontract for a High Impact Business Construction Jobs |
25 | | Project, records for all laborers and other workers |
26 | | employed by the contractor or subcontractor on the |
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1 | | project; the records shall include: |
2 | | (A) the worker's name; |
3 | | (B) the worker's address; |
4 | | (C) the worker's telephone number, if available; |
5 | | (D) the worker's social security number; |
6 | | (E) the worker's classification or |
7 | | classifications; |
8 | | (F) the worker's gross and net wages paid in each |
9 | | pay period; |
10 | | (G) the worker's number of hours worked each day; |
11 | | (H) the worker's starting and ending times of work |
12 | | each day; |
13 | | (I) the worker's hourly wage rate; |
14 | | (J) the worker's hourly overtime wage rate; |
15 | | (K) the worker's race and ethnicity; and |
16 | | (L) the worker's gender; |
17 | | (2) no later than the 15th day of each calendar month, |
18 | | provide a certified payroll for the immediately preceding |
19 | | month to the taxpayer in charge of the High Impact |
20 | | Business construction jobs project; within 5 business days |
21 | | after receiving the certified payroll, the taxpayer shall |
22 | | file the certified payroll with the Department of Labor |
23 | | and the Department of Commerce and Economic Opportunity; a |
24 | | certified payroll must be filed for only those calendar |
25 | | months during which construction on a High Impact Business |
26 | | construction jobs project has occurred; the certified |
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1 | | payroll shall consist of a complete copy of the records |
2 | | identified in paragraph (1) of this subsection (j), but |
3 | | may exclude the starting and ending times of work each |
4 | | day; the certified payroll shall be accompanied by a |
5 | | statement signed by the contractor or subcontractor or an |
6 | | officer, employee, or agent of the contractor or |
7 | | subcontractor which avers that: |
8 | | (A) he or she has examined the certified payroll |
9 | | records required to be submitted by the Act and such |
10 | | records are true and accurate; and |
11 | | (B) the contractor or subcontractor is aware that |
12 | | filing a certified payroll that he or she knows to be |
13 | | false is a Class A misdemeanor. |
14 | | A general contractor is not prohibited from relying on a |
15 | | certified payroll of a lower-tier subcontractor, provided the |
16 | | general contractor does not knowingly rely upon a |
17 | | subcontractor's false certification. |
18 | | Any contractor or subcontractor subject to this |
19 | | subsection, and any officer, employee, or agent of such |
20 | | contractor or subcontractor whose duty as an officer, |
21 | | employee, or agent it is to file a certified payroll under this |
22 | | subsection, who willfully fails to file such a certified |
23 | | payroll on or before the date such certified payroll is |
24 | | required by this paragraph to be filed and any person who |
25 | | willfully files a false certified payroll that is false as to |
26 | | any material fact is in violation of this Act and guilty of a |
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1 | | Class A misdemeanor. |
2 | | The taxpayer in charge of the project shall keep the |
3 | | records submitted in accordance with this subsection on or |
4 | | after June 5, 2019 (the effective date of Public Act 101-9) for |
5 | | a period of 5 years from the date of the last payment for work |
6 | | on a contract or subcontract for the High Impact Business |
7 | | construction jobs project. |
8 | | The records submitted in accordance with this subsection |
9 | | shall be considered public records, except an employee's |
10 | | address, telephone number, and social security number, and |
11 | | made available in accordance with the Freedom of Information |
12 | | Act. The Department of Labor shall share the information with |
13 | | the Department in order to comply with the awarding of a High |
14 | | Impact Business construction jobs credit. A contractor, |
15 | | subcontractor, or public body may retain records required |
16 | | under this Section in paper or electronic format. |
17 | | (k) Upon 7 business days' notice, each contractor and |
18 | | subcontractor shall make available for inspection and copying |
19 | | at a location within this State during reasonable hours, the |
20 | | records identified in this subsection (j) to the taxpayer in |
21 | | charge of the High Impact Business construction jobs project, |
22 | | its officers and agents, the Director of the Department of |
23 | | Labor and his or her deputies and agents, and to federal, |
24 | | State, or local law enforcement agencies and prosecutors. |
25 | | (l) The changes made to this Section by this amendatory |
26 | | Act of the 102nd General Assembly, other than the changes in |
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1 | | subsection (a), apply to high impact businesses that submit |
2 | | applications on or after the effective date of this amendatory |
3 | | Act of the 102nd General Assembly. |
4 | | (Source: P.A. 101-9, eff. 6-5-19; 102-108, eff. 1-1-22; |
5 | | 102-558, eff. 8-20-21; 102-605, eff. 8-27-21; 102-662, eff. |
6 | | 9-15-21; 102-673, eff. 11-30-21; 102-813, eff. 5-13-22; |
7 | | 102-1125, eff. 2-3-23.)
|
8 | | Section 45-10. The Economic Development for a Growing |
9 | | Economy Tax Credit Act is amended by changing Sections 5-5 and |
10 | | 5-15 as follows:
|
11 | | (35 ILCS 10/5-5)
|
12 | | Sec. 5-5. Definitions. As used in this Act:
|
13 | | "Agreement" means the Agreement between a Taxpayer and the |
14 | | Department under
the provisions of Section 5-50 of this Act.
|
15 | | "Applicant" means a Taxpayer that is operating a business |
16 | | located or that
the Taxpayer plans to locate within the State |
17 | | of Illinois and that is engaged
in interstate or intrastate |
18 | | commerce for the purpose of manufacturing,
processing, |
19 | | assembling, warehousing, or distributing products, conducting
|
20 | | research and development, providing tourism services, or |
21 | | providing services
in interstate commerce, office industries, |
22 | | or agricultural processing, but
excluding retail, retail food, |
23 | | health, or professional services.
"Applicant" does not include |
24 | | a Taxpayer who closes or
substantially reduces an operation at |
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1 | | one location in the State and relocates
substantially the same |
2 | | operation to another location in the State. This does
not |
3 | | prohibit a Taxpayer from expanding its operations at another |
4 | | location in
the State, provided that existing operations of a |
5 | | similar nature located within
the State are not closed or |
6 | | substantially reduced. This also does not prohibit
a Taxpayer |
7 | | from moving its operations from one location in the State to |
8 | | another
location in the State for the purpose of expanding the |
9 | | operation provided that
the Department determines that |
10 | | expansion cannot reasonably be accommodated
within the |
11 | | municipality in which the business is located, or in the case |
12 | | of a
business located in an incorporated area of the county, |
13 | | within the county in
which the business is located, after |
14 | | conferring with the chief elected
official of the municipality |
15 | | or county and taking into consideration any
evidence offered |
16 | | by the municipality or county regarding the ability to
|
17 | | accommodate expansion within the municipality or county.
|
18 | | "Credit" means the amount agreed to between the Department |
19 | | and Applicant
under this Act, but not to exceed the lesser of: |
20 | | (1) the sum of (i) 50% of the Incremental Income Tax |
21 | | attributable to
New Employees at the Applicant's project and |
22 | | (ii) 10% of the training costs of New Employees; or (2) 100% of |
23 | | the Incremental Income Tax attributable to
New Employees at |
24 | | the Applicant's project. However, if the project is located in |
25 | | an underserved area, then the amount of the Credit may not |
26 | | exceed the lesser of: (1) the sum of (i) 75% of the Incremental |
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1 | | Income Tax attributable to
New Employees at the Applicant's |
2 | | project and (ii) 10% of the training costs of New Employees; or |
3 | | (2) 100% of the Incremental Income Tax attributable to
New |
4 | | Employees at the Applicant's project. If the project is not |
5 | | located in an underserved area and the Applicant agrees to |
6 | | hire the required number of New Employees, then the maximum |
7 | | amount of the Credit for that Applicant may be increased by an |
8 | | amount not to exceed 25% of the Incremental Income Tax |
9 | | attributable to retained employees at the Applicant's project. |
10 | | If the project is located in an underserved area and the |
11 | | Applicant agrees to hire the required number of New Employees, |
12 | | then the maximum amount of the credit for that Applicant may be |
13 | | increased by an amount not to exceed 50% of the Incremental |
14 | | Income Tax attributable to retained employees at the |
15 | | Applicant's project.
|
16 | | "Department" means the Department of Commerce and Economic |
17 | | Opportunity.
|
18 | | "Director" means the Director of Commerce and Economic |
19 | | Opportunity.
|
20 | | "Full-time Employee" means an individual who is employed |
21 | | for consideration
for at least 35 hours each week or who |
22 | | renders any other standard of service
generally accepted by |
23 | | industry custom or practice as full-time employment. An |
24 | | individual for whom a W-2 is issued by a Professional Employer |
25 | | Organization (PEO) is a full-time employee if employed in the |
26 | | service of the Applicant for consideration for at least 35 |
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1 | | hours each week or who renders any other standard of service |
2 | | generally accepted by industry custom or practice as full-time |
3 | | employment to Applicant.
|
4 | | "Incremental Income Tax" means the total amount withheld |
5 | | during the taxable
year from the compensation of New Employees |
6 | | and, if applicable, retained employees under Article 7 of the |
7 | | Illinois
Income Tax Act arising from employment at a project |
8 | | that is the subject of an
Agreement.
|
9 | | "New Construction EDGE Agreement" means the Agreement |
10 | | between a Taxpayer and the Department under the provisions of |
11 | | Section 5-51 of this Act. |
12 | | "New Construction EDGE Credit" means an amount agreed to |
13 | | between the Department and the Applicant under this Act as |
14 | | part of a New Construction EDGE Agreement that does not exceed |
15 | | 50% of the Incremental Income Tax attributable to New |
16 | | Construction EDGE Employees at the Applicant's project; |
17 | | however, if the New Construction EDGE Project is located in an |
18 | | underserved area, then the amount of the New Construction EDGE |
19 | | Credit may not exceed 75% of the Incremental Income Tax |
20 | | attributable to New Construction EDGE Employees at the |
21 | | Applicant's New Construction EDGE Project. |
22 | | "New Construction EDGE Employee" means a laborer or worker |
23 | | who is employed by an Illinois contractor or subcontractor in |
24 | | the actual construction work on the site of a New Construction |
25 | | EDGE Project, pursuant to a New Construction EDGE Agreement. |
26 | | "New Construction EDGE Incremental Income Tax" means the |
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1 | | total amount withheld during the taxable year from the |
2 | | compensation of New Construction EDGE Employees. |
3 | | "New Construction EDGE Project" means the building of a |
4 | | Taxpayer's structure or building, or making improvements of |
5 | | any kind to real property. "New Construction EDGE Project" |
6 | | does not include the routine operation, routine repair, or |
7 | | routine maintenance of existing structures, buildings, or real |
8 | | property. |
9 | | "New Employee" means:
|
10 | | (a) A Full-time Employee first employed by a Taxpayer |
11 | | in the project
that is the subject of an Agreement and who |
12 | | is hired after the Taxpayer
enters into the tax credit |
13 | | Agreement.
|
14 | | (b) The term "New Employee" does not include:
|
15 | | (1) an employee of the Taxpayer who performs a job |
16 | | that was previously
performed by another employee, if |
17 | | that job existed for at least 6
months before hiring |
18 | | the employee;
|
19 | | (2) an employee of the Taxpayer who was previously |
20 | | employed in
Illinois by a Related Member of the |
21 | | Taxpayer and whose employment was
shifted to the |
22 | | Taxpayer after the Taxpayer entered into the tax |
23 | | credit
Agreement; or
|
24 | | (3) a child, grandchild, parent, or spouse, other |
25 | | than a spouse who
is legally separated from the |
26 | | individual, of any individual who has a direct
or an |
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1 | | indirect ownership interest of at least 5% in the |
2 | | profits, capital, or
value of the Taxpayer.
|
3 | | (c) Notwithstanding paragraph (1) of subsection (b), |
4 | | an employee may be
considered a New Employee under the |
5 | | Agreement if the employee performs a job
that was |
6 | | previously performed by an employee who was:
|
7 | | (1) treated under the Agreement as a New Employee; |
8 | | and
|
9 | | (2) promoted by the Taxpayer to another job.
|
10 | | (d) Notwithstanding subsection (a), the Department may |
11 | | award Credit to an
Applicant with respect to an employee |
12 | | hired prior to the date of the Agreement
if:
|
13 | | (1) the Applicant is in receipt of a letter from |
14 | | the Department stating
an
intent to enter into a |
15 | | credit Agreement;
|
16 | | (2) the letter described in paragraph (1) is |
17 | | issued by the
Department not later than 15 days after |
18 | | the effective date of this Act; and
|
19 | | (3) the employee was hired after the date the |
20 | | letter described in
paragraph (1) was issued.
|
21 | | "Noncompliance Date" means, in the case of a Taxpayer that |
22 | | is not complying
with the requirements of the Agreement or the |
23 | | provisions of this Act, the day
following the last date upon |
24 | | which the Taxpayer was in compliance with the
requirements of |
25 | | the Agreement and the provisions of this Act, as determined
by |
26 | | the Director, pursuant to Section 5-65.
|
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1 | | "Pass Through Entity" means an entity that is exempt from |
2 | | the tax under
subsection (b) or (c) of Section 205 of the |
3 | | Illinois Income Tax Act.
|
4 | | "Professional Employer Organization" (PEO) means an |
5 | | employee leasing company, as defined in Section 206.1(A)(2) of |
6 | | the Illinois Unemployment Insurance Act.
|
7 | | "Related Member" means a person that, with respect to the |
8 | | Taxpayer during
any portion of the taxable year, is any one of |
9 | | the following:
|
10 | | (1) An individual stockholder, if the stockholder and |
11 | | the members of the
stockholder's family (as defined in |
12 | | Section 318 of the Internal Revenue Code)
own directly, |
13 | | indirectly, beneficially, or constructively, in the |
14 | | aggregate,
at least 50% of the value of the Taxpayer's |
15 | | outstanding stock.
|
16 | | (2) A partnership, estate, or trust and any partner or |
17 | | beneficiary,
if the partnership, estate, or trust, and its |
18 | | partners or beneficiaries own
directly, indirectly, |
19 | | beneficially, or constructively, in the aggregate, at
|
20 | | least 50% of the profits, capital, stock, or value of the
|
21 | | Taxpayer.
|
22 | | (3) A corporation, and any party related to the |
23 | | corporation in a manner
that would require an attribution |
24 | | of stock from the corporation to the
party or from the |
25 | | party to the corporation under the attribution rules
of |
26 | | Section 318 of the Internal Revenue Code, if the Taxpayer |
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1 | | owns
directly, indirectly, beneficially, or constructively |
2 | | at least
50% of the value of the corporation's outstanding |
3 | | stock.
|
4 | | (4) A corporation and any party related to that |
5 | | corporation in a manner
that would require an attribution |
6 | | of stock from the corporation to the party or
from the |
7 | | party to the corporation under the attribution rules of |
8 | | Section 318 of
the Internal Revenue Code, if the |
9 | | corporation and all such related parties own
in the |
10 | | aggregate at least 50% of the profits, capital, stock, or |
11 | | value of the
Taxpayer.
|
12 | | (5) A person to or from whom there is attribution of |
13 | | stock ownership
in accordance with Section 1563(e) of the |
14 | | Internal Revenue Code, except,
for purposes of determining |
15 | | whether a person is a Related Member under
this paragraph, |
16 | | 20% shall be substituted for 5% wherever 5% appears in
|
17 | | Section 1563(e) of the Internal Revenue Code.
|
18 | | "Startup taxpayer" means , for Agreements that are executed |
19 | | before the effective date of the changes made to this Section |
20 | | by this amendatory Act of the 103rd General Assembly, a |
21 | | corporation, partnership, or other entity incorporated or |
22 | | organized no more than 5 years before the filing of an |
23 | | application for an Agreement that has never had any Illinois |
24 | | income tax liability, excluding any Illinois income tax |
25 | | liability of a Related Member which shall not be attributed to |
26 | | the startup taxpayer. "Startup taxpayer" means, for Agreements |
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1 | | that are executed on or after the effective date of this |
2 | | amendatory Act of the 103rd General Assembly, a corporation, |
3 | | partnership, or other entity that is incorporated or organized |
4 | | no more than 10 years before the filing of an application for |
5 | | an Agreement and that has never had any Illinois income tax |
6 | | liability. For the purpose of determining whether the taxpayer |
7 | | has had any Illinois income tax liability, the Illinois income |
8 | | tax liability of a Related Member shall not be attributed to |
9 | | the startup taxpayer. |
10 | | "Taxpayer" means an individual, corporation, partnership, |
11 | | or other entity
that has any Illinois Income Tax liability.
|
12 | | Until July 1, 2022, "underserved area" means a geographic |
13 | | area that meets one or more of the following conditions: |
14 | | (1) the area has a poverty rate of at least 20% |
15 | | according to the latest federal decennial census; |
16 | | (2) 75% or more of the children in the area |
17 | | participate in the federal free lunch program according to |
18 | | reported statistics from the State Board of Education; |
19 | | (3) at least 20% of the households in the area receive |
20 | | assistance under the Supplemental Nutrition Assistance |
21 | | Program (SNAP); or |
22 | | (4) the area has
an average unemployment rate, as |
23 | | determined by the Illinois Department of
Employment |
24 | | Security, that is more than 120% of the national |
25 | | unemployment average, as
determined by the U.S. Department |
26 | | of Labor, for a period of at least 2 consecutive calendar |
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1 | | years preceding the date of the application. |
2 | | On and after July 1, 2022, "underserved area" means a |
3 | | geographic area that meets one or more of the following |
4 | | conditions: |
5 | | (1) the area has a poverty rate of at least 20% |
6 | | according to the latest American Community Survey; |
7 | | (2) 35% or more of the families with children in the |
8 | | area are living below 130% of the poverty line, according |
9 | | to the latest American Community Survey; |
10 | | (3) at least 20% of the households in the area receive |
11 | | assistance under the Supplemental Nutrition Assistance |
12 | | Program (SNAP); or |
13 | | (4) the area has an average unemployment rate, as |
14 | | determined by the Illinois Department of Employment |
15 | | Security, that is more than 120% of the national |
16 | | unemployment average, as determined by the U.S. Department |
17 | | of Labor, for a period of at least 2 consecutive calendar |
18 | | years preceding the date of the application. |
19 | | (Source: P.A. 101-9, eff. 6-5-19; 102-330, eff. 1-1-22; |
20 | | 102-700, eff. 4-19-22; 102-1125, eff. 2-3-23.)
|
21 | | (35 ILCS 10/5-15) |
22 | | Sec. 5-15. Tax Credit Awards. Subject to the conditions |
23 | | set forth in this
Act, a Taxpayer is
entitled to a Credit |
24 | | against or, as described in subsection (g) of this Section, a |
25 | | payment towards taxes imposed pursuant to subsections (a) and |
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1 | | (b)
of Section 201 of the Illinois
Income Tax Act that may be |
2 | | imposed on the Taxpayer for a taxable year beginning
on or
|
3 | | after January 1, 1999,
if the Taxpayer is awarded a Credit by |
4 | | the Department under this Act for that
taxable year. |
5 | | (a) The Department shall make Credit awards under this Act |
6 | | to foster job
creation and retention in Illinois. |
7 | | (b) A person that proposes a project to create new jobs in |
8 | | Illinois must
enter into an Agreement with the
Department for |
9 | | the Credit under this Act. |
10 | | (c) The Credit shall be claimed for the taxable years |
11 | | specified in the
Agreement. |
12 | | (d) The Credit shall not exceed the Incremental Income Tax |
13 | | attributable to
the project that is the subject of the |
14 | | Agreement. |
15 | | (e) Nothing herein shall prohibit a Tax Credit Award to an |
16 | | Applicant that uses a PEO if all other award criteria are |
17 | | satisfied.
|
18 | | (f) In lieu of the Credit allowed under this Act against |
19 | | the taxes imposed pursuant to subsections (a) and (b) of |
20 | | Section 201 of the Illinois Income Tax Act for any taxable year |
21 | | ending on or after December 31, 2009, for Taxpayers that |
22 | | entered into Agreements prior to January 1, 2015 and otherwise |
23 | | meet the criteria set forth in this subsection (f), the |
24 | | Taxpayer may elect to claim the Credit against its obligation |
25 | | to pay over withholding under Section 704A of the Illinois |
26 | | Income Tax Act. |
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1 | | (1) The election under this subsection (f) may be made |
2 | | only by a Taxpayer that (i) is primarily engaged in one of |
3 | | the following business activities: water purification and |
4 | | treatment, motor vehicle metal stamping, automobile |
5 | | manufacturing, automobile and light duty motor vehicle |
6 | | manufacturing, motor vehicle manufacturing, light truck |
7 | | and utility vehicle manufacturing, heavy duty truck |
8 | | manufacturing, motor vehicle body manufacturing, cable |
9 | | television infrastructure design or manufacturing, or |
10 | | wireless telecommunication or computing terminal device |
11 | | design or manufacturing for use on public networks and |
12 | | (ii) meets the following criteria: |
13 | | (A) the Taxpayer (i) had an Illinois net loss or an |
14 | | Illinois net loss deduction under Section 207 of the |
15 | | Illinois Income Tax Act for the taxable year in which |
16 | | the Credit is awarded, (ii) employed a minimum of |
17 | | 1,000 full-time employees in this State during the |
18 | | taxable year in which the Credit is awarded, (iii) has |
19 | | an Agreement under this Act on December 14, 2009 (the |
20 | | effective date of Public Act 96-834), and (iv) is in |
21 | | compliance with all provisions of that Agreement; |
22 | | (B) the Taxpayer (i) had an Illinois net loss or an |
23 | | Illinois net loss deduction under Section 207 of the |
24 | | Illinois Income Tax Act for the taxable year in which |
25 | | the Credit is awarded, (ii) employed a minimum of |
26 | | 1,000 full-time employees in this State during the |
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1 | | taxable year in which the Credit is awarded, and (iii) |
2 | | has applied for an Agreement within 365 days after |
3 | | December 14, 2009 (the effective date of Public Act |
4 | | 96-834); |
5 | | (C) the Taxpayer (i) had an Illinois net operating |
6 | | loss carryforward under Section 207 of the Illinois |
7 | | Income Tax Act in a taxable year ending during |
8 | | calendar year 2008, (ii) has applied for an Agreement |
9 | | within 150 days after the effective date of this |
10 | | amendatory Act of the 96th General Assembly, (iii) |
11 | | creates at least 400 new jobs in Illinois, (iv) |
12 | | retains at least 2,000 jobs in Illinois that would |
13 | | have been at risk of relocation out of Illinois over a |
14 | | 10-year period, and (v) makes a capital investment of |
15 | | at least $75,000,000; |
16 | | (D) the Taxpayer (i) had an Illinois net operating |
17 | | loss carryforward under Section 207 of the Illinois |
18 | | Income Tax Act in a taxable year ending during |
19 | | calendar year 2009, (ii) has applied for an Agreement |
20 | | within 150 days after the effective date of this |
21 | | amendatory Act of the 96th General Assembly, (iii) |
22 | | creates at least 150 new jobs, (iv) retains at least |
23 | | 1,000 jobs in Illinois that would have been at risk of |
24 | | relocation out of Illinois over a 10-year period, and |
25 | | (v) makes a capital investment of at least |
26 | | $57,000,000; or |
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1 | | (E) the Taxpayer (i) employed at least 2,500 |
2 | | full-time employees in the State during the year in |
3 | | which the Credit is awarded, (ii) commits to make at |
4 | | least $500,000,000 in combined capital improvements |
5 | | and project costs under the Agreement, (iii) applies |
6 | | for an Agreement between January 1, 2011 and June 30, |
7 | | 2011, (iv) executes an Agreement for the Credit during |
8 | | calendar year 2011, and (v) was incorporated no more |
9 | | than 5 years before the filing of an application for an |
10 | | Agreement. |
11 | | (1.5) The election under this subsection (f) may also |
12 | | be made by a Taxpayer for any Credit awarded pursuant to an |
13 | | agreement that was executed between January 1, 2011 and |
14 | | June 30, 2011, if the Taxpayer (i) is primarily engaged in |
15 | | the manufacture of inner tubes or tires, or both, from |
16 | | natural and synthetic rubber, (ii) employs a minimum of |
17 | | 2,400 full-time employees in Illinois at the time of |
18 | | application, (iii) creates at least 350 full-time jobs and |
19 | | retains at least 250 full-time jobs in Illinois that would |
20 | | have been at risk of being created or retained outside of |
21 | | Illinois, and (iv) makes a capital investment of at least |
22 | | $200,000,000 at the project location. |
23 | | (1.6) The election under this subsection (f) may also |
24 | | be made by a Taxpayer for any Credit awarded pursuant to an |
25 | | agreement that was executed within 150 days after the |
26 | | effective date of this amendatory Act of the 97th General |
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1 | | Assembly, if the Taxpayer (i) is primarily engaged in the |
2 | | operation of a discount department store, (ii) maintains |
3 | | its corporate headquarters in Illinois, (iii) employs a |
4 | | minimum of 4,250 full-time employees at its corporate |
5 | | headquarters in Illinois at the time of application, (iv) |
6 | | retains at least 4,250 full-time jobs in Illinois that |
7 | | would have been at risk of being relocated outside of |
8 | | Illinois, (v) had a minimum of $40,000,000,000 in total |
9 | | revenue in 2010, and (vi) makes a capital investment of at |
10 | | least $300,000,000 at the project location. |
11 | | (1.7) Notwithstanding any other provision of law, the |
12 | | election under this subsection (f) may also be made by a |
13 | | Taxpayer for any Credit awarded pursuant to an agreement |
14 | | that was executed or applied for on or after July 1, 2011 |
15 | | and on or before March 31, 2012, if the Taxpayer is |
16 | | primarily engaged in the manufacture of original and |
17 | | aftermarket filtration parts and products for automobiles, |
18 | | motor vehicles, light duty motor vehicles, light trucks |
19 | | and utility vehicles, and heavy duty trucks, (ii) employs |
20 | | a minimum of 1,000 full-time employees in Illinois at the |
21 | | time of application, (iii) creates at least 250 full-time |
22 | | jobs in Illinois, (iv) relocates its corporate |
23 | | headquarters to Illinois from another state, and (v) makes |
24 | | a capital investment of at least $4,000,000 at the project |
25 | | location. |
26 | | (1.8) Notwithstanding any other provision of law, the |
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1 | | election under this subsection (f) may also be made by a |
2 | | startup taxpayer for any Credit awarded pursuant to an |
3 | | Agreement that was executed or applied for on or after the |
4 | | effective date of this amendatory Act of the 102nd General |
5 | | Assembly , if the startup taxpayer, without considering any |
6 | | Related Member or other investor, (i) has never had any |
7 | | Illinois income tax liability and (ii) was incorporated no |
8 | | more than 5 years before the filing of an application for |
9 | | an Agreement . Any such election under this paragraph (1.8) |
10 | | shall be effective unless and until such startup taxpayer |
11 | | has any Illinois income tax liability. This election under |
12 | | this paragraph (1.8) shall automatically terminate when |
13 | | the startup taxpayer has any Illinois income tax liability |
14 | | at the end of any taxable year during the term of the |
15 | | Agreement. Thereafter, the startup taxpayer may receive a |
16 | | Credit, taking into account any benefits previously |
17 | | enjoyed or received by way of the election under this |
18 | | paragraph (1.8), so long as the startup taxpayer remains |
19 | | in compliance with the terms and conditions of the |
20 | | Agreement. |
21 | | (2) An election under this subsection shall allow the |
22 | | credit to be taken against payments otherwise due under |
23 | | Section 704A of the Illinois Income Tax Act during the |
24 | | first calendar quarter year beginning after the end of the |
25 | | taxable quarter year in which the credit is awarded under |
26 | | this Act. |
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1 | | (3) The election shall be made in the form and manner |
2 | | required by the Illinois Department of Revenue and, once |
3 | | made, shall be irrevocable. |
4 | | (4) If a Taxpayer who meets the requirements of |
5 | | subparagraph (A) of paragraph (1) of this subsection (f) |
6 | | elects to claim the Credit against its withholdings as |
7 | | provided in this subsection (f), then, on and after the |
8 | | date of the election, the terms of the Agreement between |
9 | | the Taxpayer and the Department may not be further amended |
10 | | during the term of the Agreement. |
11 | | (g) A pass-through entity that has been awarded a credit |
12 | | under this Act, its shareholders, or its partners may treat |
13 | | some or all of the credit awarded pursuant to this Act as a tax |
14 | | payment for purposes of the Illinois Income Tax Act. The term |
15 | | "tax payment" means a payment as described in Article 6 or |
16 | | Article 8 of the Illinois Income Tax Act or a composite payment |
17 | | made by a pass-through entity on behalf of any of its |
18 | | shareholders or partners to satisfy such shareholders' or |
19 | | partners' taxes imposed pursuant to subsections (a) and (b) of |
20 | | Section 201 of the Illinois Income Tax Act. In no event shall |
21 | | the amount of the award credited pursuant to this Act exceed |
22 | | the Illinois income tax liability of the pass-through entity |
23 | | or its shareholders or partners for the taxable year. |
24 | | (Source: P.A. 102-700, eff. 4-19-22.)
|
25 | | Section 45-15. The Public Utilities Act is amended by |
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1 | | changing Section 9-222.1A as follows:
|
2 | | (220 ILCS 5/9-222.1A)
|
3 | | Sec. 9-222.1A. High impact business. Beginning on August |
4 | | 1, 1998 and
thereafter, a business enterprise that is |
5 | | certified as a High Impact Business
by the Department of |
6 | | Commerce and Economic Opportunity (formerly Department of |
7 | | Commerce and Community Affairs) is exempt from the tax
imposed |
8 | | by Section 2-4 of the Electricity Excise Tax Law, if the High |
9 | | Impact
Business is registered to self-assess that tax, and is |
10 | | exempt from any
additional charges added to the business |
11 | | enterprise's utility bills as a
pass-on of State utility taxes |
12 | | under Section 9-222 of this Act, to the extent
the tax or |
13 | | charges are exempted by the percentage specified by the |
14 | | Department
of Commerce and Economic Opportunity for State |
15 | | utility taxes, provided the
business enterprise meets the |
16 | | following criteria:
|
17 | | (1) (A) it intends either (i) to make a minimum |
18 | | eligible investment
of
$12,000,000 that will be placed |
19 | | in service in qualified property in Illinois
and is |
20 | | intended to create at least 500 full-time equivalent |
21 | | jobs at a
designated
location in Illinois; or (ii) to |
22 | | make a minimum eligible investment of
$30,000,000 that |
23 | | will be placed in service in qualified property in
|
24 | | Illinois and is intended to retain at least 1,500 |
25 | | full-time equivalent jobs at
a designated location in |
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1 | | Illinois; or
|
2 | | (B) it meets the criteria of subdivision |
3 | | (a)(3)(B), (a)(3)(C),
(a)(3)(D), or (a)(3)(F) , or |
4 | | (a)(3)(G) of
Section 5.5 of the
Illinois Enterprise |
5 | | Zone Act;
|
6 | | (2) it is designated as a High Impact Business by the |
7 | | Department of
Commerce and Economic Opportunity; and
|
8 | | (3) it is certified by the Department of Commerce and |
9 | | Economic Opportunity as complying with the requirements |
10 | | specified in clauses (1) and (2) of
this Section.
|
11 | | The Department of Commerce and Economic Opportunity shall |
12 | | determine the period
during which the exemption from the |
13 | | Electricity Excise Tax Law and the
charges imposed under |
14 | | Section 9-222 are in effect and shall specify the percentage
|
15 | | of the exemption from those taxes or additional charges.
|
16 | | The Department of Commerce and Economic Opportunity is |
17 | | authorized to
promulgate rules and regulations to carry out |
18 | | the provisions of this Section,
including procedures for |
19 | | complying with the requirements specified in
clauses (1) and |
20 | | (2) of this Section and procedures for applying for the
|
21 | | exemptions authorized under this Section; to define the |
22 | | amounts and types of
eligible investments that business |
23 | | enterprises must make in order to receive
State utility tax |
24 | | exemptions or exemptions from the additional charges imposed
|
25 | | under Section 9-222 and this Section; to
approve such utility |
26 | | tax exemptions for business enterprises whose investments
are |
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1 | | not yet placed in service; and to require that business |
2 | | enterprises
granted tax exemptions or exemptions from |
3 | | additional charges under Section
9-222 repay the exempted |
4 | | amount if the business enterprise fails
to comply with the |
5 | | terms and conditions of the certification.
|
6 | | Upon certification of the business enterprises by the |
7 | | Department of Commerce
and Economic Opportunity, the |
8 | | Department of Commerce and Economic Opportunity shall
notify |
9 | | the Department of Revenue of the certification. The Department |
10 | | of
Revenue shall notify the public utilities of the exemption |
11 | | status of business
enterprises from the tax or pass-on charges |
12 | | of State utility taxes. The
exemption
status shall take effect |
13 | | within 3 months after certification of the
business |
14 | | enterprise.
|
15 | | (Source: P.A. 102-1125, eff. 2-3-23.)
|
16 | | ARTICLE 50. INVESTMENT PARTNERSHIPS |
17 | | Section 50-5. The Illinois Income Tax Act is amended by |
18 | | changing Sections 709.5 and 1501 as follows: |
19 | | (35 ILCS 5/709.5)
|
20 | | Sec. 709.5. Withholding by partnerships, Subchapter S |
21 | | corporations, and trusts. |
22 | | (a) In general. For each taxable year ending on or after |
23 | | December 31, 2008, every partnership (other than a publicly |
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1 | | traded partnership under Section 7704 of the Internal Revenue |
2 | | Code or investment partnership), Subchapter S corporation, and |
3 | | trust must withhold from each nonresident partner, |
4 | | shareholder, or beneficiary (other than a partner, |
5 | | shareholder, or beneficiary who is exempt from tax under |
6 | | Section 501(a) of the Internal Revenue Code or under Section |
7 | | 205 of this Act, who is included on a composite return filed by |
8 | | the partnership or Subchapter S corporation for the taxable |
9 | | year under subsection (f) of Section 502 of this Act), or who |
10 | | is a retired partner, to the extent that partner's |
11 | | distributions are exempt from tax under Section 203(a)(2)(F) |
12 | | of this Act) an amount equal to the sum of (i) the share of |
13 | | business income of the partnership, Subchapter S corporation, |
14 | | or trust apportionable to Illinois plus (ii) for taxable years |
15 | | ending on or after December 31, 2014, the share of nonbusiness |
16 | | income of the partnership, Subchapter S corporation, or trust |
17 | | allocated to Illinois under Section 303 of this Act (other |
18 | | than an amount allocated to the commercial domicile of the |
19 | | taxpayer under Section 303 of this Act) that is distributable |
20 | | to that partner, shareholder, or beneficiary under Sections |
21 | | 702 and 704 and Subchapter S of the Internal Revenue Code, |
22 | | whether or not distributed, (iii) multiplied by the applicable |
23 | | rates of tax for that partner, shareholder, or beneficiary |
24 | | under subsections (a) through (d) of Section 201 of this Act, |
25 | | and (iv) net of the share of any credit under Article 2 of this |
26 | | Act that is distributable by the partnership, Subchapter S |
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1 | | corporation, or trust and allowable against the tax liability |
2 | | of that partner, shareholder, or beneficiary for a taxable |
3 | | year ending on or after December 31, 2014. |
4 | | (b) Credit for taxes withheld. Any amount withheld under |
5 | | subsection (a) of this Section and paid to the Department |
6 | | shall be treated as a payment of the estimated tax liability or |
7 | | of the liability for withholding under this Section of the |
8 | | partner, shareholder, or beneficiary to whom the income is |
9 | | distributable for the taxable year in which that person |
10 | | incurred a liability under this Act with respect to that |
11 | | income.
The Department shall adopt rules pursuant to which a |
12 | | partner, shareholder, or beneficiary may claim a credit |
13 | | against its obligation for withholding under this Section for |
14 | | amounts withheld under this Section with respect to income |
15 | | distributable to it by a partnership, Subchapter S |
16 | | corporation, or trust and allowing its partners, shareholders, |
17 | | or beneficiaries to claim a credit under this subsection (b) |
18 | | for those withheld amounts.
|
19 | | (c) Exemption from withholding. |
20 | | (1) A partnership, Subchapter S corporation, or trust |
21 | | shall not be required to withhold tax under subsection (a) |
22 | | of this Section with respect to any nonresident partner, |
23 | | shareholder, or beneficiary (other than an individual) |
24 | | from whom the partnership, S corporation, or trust has |
25 | | received a certificate, completed in the form and manner |
26 | | prescribed by the Department, stating that such |
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1 | | nonresident partner, shareholder, or beneficiary shall: |
2 | | (A) file all returns that the partner, |
3 | | shareholder, or beneficiary is required to file under |
4 | | Section 502 of this Act and make timely payment of all |
5 | | taxes imposed under Section 201 of this Act or under |
6 | | this Section on the partner, shareholder, or |
7 | | beneficiary with respect to income of the partnership, |
8 | | S corporation, or trust; and |
9 | | (B) be subject to personal jurisdiction in this |
10 | | State for purposes of the collection of income taxes, |
11 | | together with related interest and penalties, imposed |
12 | | on the partner, shareholder, or beneficiary with |
13 | | respect to the income of the partnership, S |
14 | | corporation, or trust. |
15 | | (2) The Department may revoke the exemption provided |
16 | | by this subsection (c) at any time that it determines that |
17 | | the nonresident partner, shareholder, or beneficiary is |
18 | | not abiding by the terms of the certificate. The |
19 | | Department shall notify the partnership, S corporation, or |
20 | | trust that it has revoked a certificate by notice left at |
21 | | the usual place of business of the partnership, S |
22 | | corporation, or trust or by mail to the last known address |
23 | | of the partnership, S corporation, or trust. |
24 | | (3) A partnership, S corporation, or trust that |
25 | | receives a certificate under this subsection (c) properly |
26 | | completed by a nonresident partner, shareholder, or |
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1 | | beneficiary shall not be required to withhold any amount |
2 | | from that partner, shareholder, or beneficiary, the |
3 | | payment of which would be due under Section 711(a-5) of |
4 | | this Act after the receipt of the certificate and no |
5 | | earlier than 60 days after the Department has notified the |
6 | | partnership, S corporation, or trust that the certificate |
7 | | has been revoked. |
8 | | (4) Certificates received by a partnership, S |
9 | | corporation, or trust under this subsection (c) must be |
10 | | retained by the partnership, S corporation, or trust and a |
11 | | record of such certificates must be provided to the |
12 | | Department, in a format in which the record is available |
13 | | for review by the Department, upon request by the |
14 | | Department. The Department may, by rule, require the |
15 | | record of certificates to be maintained and provided to |
16 | | the Department electronically.
|
17 | | (d) For taxable years ending on and after December 31, |
18 | | 2023, every investment partnership, as defined in Section 1501 |
19 | | of this Act, shall withhold from each nonresident partner |
20 | | (other than a partner who is exempt from tax under Section |
21 | | 501(a) of the Internal Revenue Code or under Section 205 of |
22 | | this Act, or who is a retired partner, to the extent that |
23 | | partner's distributions are exempt from tax under Section |
24 | | 203(a)(2)(F) of this Act) an amount calculated as follows: |
25 | | (1) the sum of (i) the share of income that, but for |
26 | | the provisions of subsection (c-5) of Section 305 of this |
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1 | | Act, would be apportioned to Illinois by the investment |
2 | | partnership under subsection (a) of Section 305 of this |
3 | | Act and (ii) the share of nonbusiness income that, but for |
4 | | the provisions of subsection (c-5) of Section 305 of this |
5 | | Act, would be allocated to Illinois by the investment |
6 | | partnership under subsection (b) of Sections 305 and |
7 | | Section 303 of this Act (other than an amount allocated to |
8 | | the commercial domicile of the taxpayer under Section 303 |
9 | | of this Act) that is distributable to that partner under |
10 | | Sections 702 and 704 of the Internal Revenue Code, whether |
11 | | or not distributed; multiplied by |
12 | | (2) the applicable rates of tax for that partner under |
13 | | subsections (a) through (d) of Section 201 of this Act |
14 | | (except that, if the partner is a partnership or |
15 | | subchapter S corporation, the rate shall be equal to the |
16 | | rate imposed on individuals under subsection (b) of |
17 | | Section 201 of this Act); and |
18 | | (3) net of the investment partnership's distributive |
19 | | share of any credit under Article 2 of this Act that is |
20 | | distributable by the partnership and first allowable |
21 | | against the tax liability of that partner for a taxable |
22 | | year ending on or after December 31, 2023. |
23 | | Except to the extent that the income of the investment |
24 | | partnership is business income in the hands of the partner |
25 | | under subsection (c-5) of Section 305 of this Act, no credit |
26 | | for taxes withheld shall be allowed under subsection (b) of |
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1 | | this Section for amounts withheld under this subsection. |
2 | | The provisions of subsection (c) of this Section, allowing |
3 | | for exemption from withholding, shall not apply for purposes |
4 | | of this subsection. |
5 | | (Source: P.A. 100-201, eff. 8-18-17.)
|
6 | | (35 ILCS 5/1501) (from Ch. 120, par. 15-1501)
|
7 | | Sec. 1501. Definitions.
|
8 | | (a) In general. When used in this Act, where not
otherwise |
9 | | distinctly expressed or manifestly incompatible with the |
10 | | intent
thereof:
|
11 | | (1) Business income. The term "business income" means |
12 | | all income that may be treated as apportionable business |
13 | | income under the Constitution of the United States. |
14 | | Business income is net of the deductions allocable |
15 | | thereto. Such term does not include compensation
or the |
16 | | deductions allocable thereto.
For each taxable year |
17 | | beginning on or after January 1, 2003, a taxpayer may
|
18 | | elect to treat all income other than compensation as |
19 | | business income. This
election shall be made in accordance |
20 | | with rules adopted by the Department and,
once made, shall |
21 | | be irrevocable.
|
22 | | (1.5) Captive real estate investment trust:
|
23 | | (A) The term "captive real estate investment |
24 | | trust" means a corporation, trust, or association:
|
25 | | (i) that is considered a real estate |
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1 | | investment trust for the taxable year under |
2 | | Section 856 of the Internal Revenue Code;
|
3 | | (ii) the certificates of beneficial interest |
4 | | or shares of which are not regularly traded on an |
5 | | established securities market; and |
6 | | (iii) of which more than 50% of the voting |
7 | | power or value of the beneficial interest or |
8 | | shares, at any time during the last half of the |
9 | | taxable year, is owned or controlled, directly, |
10 | | indirectly, or constructively, by a single |
11 | | corporation. |
12 | | (B) The term "captive real estate investment |
13 | | trust" does not include: |
14 | | (i) a real estate investment trust of which |
15 | | more than 50% of the voting power or value of the |
16 | | beneficial interest or shares is owned or |
17 | | controlled, directly, indirectly, or |
18 | | constructively, by: |
19 | | (a) a real estate investment trust, other |
20 | | than a captive real estate investment trust; |
21 | | (b) a person who is exempt from taxation |
22 | | under Section 501 of the Internal Revenue |
23 | | Code, and who is not required to treat income |
24 | | received from the real estate investment trust |
25 | | as unrelated business taxable income under |
26 | | Section 512 of the Internal Revenue Code; |
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1 | | (c) a listed Australian property trust, if |
2 | | no more than 50% of the voting power or value |
3 | | of the beneficial interest or shares of that |
4 | | trust, at any time during the last half of the |
5 | | taxable year, is owned or controlled, directly |
6 | | or indirectly, by a single person; |
7 | | (d) an entity organized as a trust, |
8 | | provided a listed Australian property trust |
9 | | described in subparagraph (c) owns or |
10 | | controls, directly or indirectly, or |
11 | | constructively, 75% or more of the voting |
12 | | power or value of the beneficial interests or |
13 | | shares of such entity; or |
14 | | (e) an entity that is organized outside of |
15 | | the laws of the United States and that |
16 | | satisfies all of the following criteria: |
17 | | (1) at least 75% of the entity's total |
18 | | asset value at the close of its taxable |
19 | | year is represented by real estate assets |
20 | | (as defined in Section 856(c)(5)(B) of the |
21 | | Internal Revenue Code, thereby including |
22 | | shares or certificates of beneficial |
23 | | interest in any real estate investment |
24 | | trust), cash and cash equivalents, and |
25 | | U.S. Government securities; |
26 | | (2) the entity is not subject to tax |
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1 | | on amounts that are distributed to its |
2 | | beneficial owners or is exempt from |
3 | | entity-level taxation; |
4 | | (3) the entity distributes at least |
5 | | 85% of its taxable income (as computed in |
6 | | the jurisdiction in which it is organized) |
7 | | to the holders of its shares or |
8 | | certificates of beneficial interest on an |
9 | | annual basis; |
10 | | (4) either (i) the shares or |
11 | | beneficial interests of the entity are |
12 | | regularly traded on an established |
13 | | securities market or (ii) not more than |
14 | | 10% of the voting power or value in the |
15 | | entity is held, directly, indirectly, or |
16 | | constructively, by a single entity or |
17 | | individual; and |
18 | | (5) the entity is organized in a |
19 | | country that has entered into a tax treaty |
20 | | with the United States; or |
21 | | (ii) during its first taxable year for which |
22 | | it elects to be treated as a real estate |
23 | | investment trust under Section 856(c)(1) of the |
24 | | Internal Revenue Code, a real estate investment |
25 | | trust the certificates of beneficial interest or |
26 | | shares of which are not regularly traded on an |
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1 | | established securities market, but only if the |
2 | | certificates of beneficial interest or shares of |
3 | | the real estate investment trust are regularly |
4 | | traded on an established securities market prior |
5 | | to the earlier of the due date (including |
6 | | extensions) for filing its return under this Act |
7 | | for that first taxable year or the date it |
8 | | actually files that return. |
9 | | (C) For the purposes of this subsection (1.5), the |
10 | | constructive ownership rules prescribed under Section |
11 | | 318(a) of the Internal Revenue Code, as modified by |
12 | | Section 856(d)(5) of the Internal Revenue Code, apply |
13 | | in determining the ownership of stock, assets, or net |
14 | | profits of any person.
|
15 | | (D) For the purposes of this item (1.5), for |
16 | | taxable years ending on or after August 16, 2007, the |
17 | | voting power or value of the beneficial interest or |
18 | | shares of a real estate investment trust does not |
19 | | include any voting power or value of beneficial |
20 | | interest or shares in a real estate investment trust |
21 | | held directly or indirectly in a segregated asset |
22 | | account by a life insurance company (as described in |
23 | | Section 817 of the Internal Revenue Code) to the |
24 | | extent such voting power or value is for the benefit of |
25 | | entities or persons who are either immune from |
26 | | taxation or exempt from taxation under subtitle A of |
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1 | | the Internal Revenue Code. |
2 | | (2) Commercial domicile. The term "commercial |
3 | | domicile" means the
principal
place from which the trade |
4 | | or business of the taxpayer is directed or managed.
|
5 | | (3) Compensation. The term "compensation" means wages, |
6 | | salaries,
commissions
and any other form of remuneration |
7 | | paid to employees for personal services.
|
8 | | (4) Corporation. The term "corporation" includes |
9 | | associations, joint-stock
companies, insurance companies |
10 | | and cooperatives. Any entity, including a
limited |
11 | | liability company formed under the Illinois Limited |
12 | | Liability Company
Act, shall be treated as a corporation |
13 | | if it is so classified for federal
income tax purposes.
|
14 | | (5) Department. The term "Department" means the |
15 | | Department of Revenue of
this State.
|
16 | | (6) Director. The term "Director" means the Director |
17 | | of Revenue of this
State.
|
18 | | (7) Fiduciary. The term "fiduciary" means a guardian, |
19 | | trustee, executor,
administrator, receiver, or any person |
20 | | acting in any fiduciary capacity for any
person.
|
21 | | (8) Financial organization.
|
22 | | (A) The term "financial organization" means
any
|
23 | | bank, bank holding company, trust company, savings |
24 | | bank, industrial bank,
land bank, safe deposit |
25 | | company, private banker, savings and loan association,
|
26 | | building and loan association, credit union, currency |
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1 | | exchange, cooperative
bank, small loan company, sales |
2 | | finance company, investment company, or any
person |
3 | | which is owned by a bank or bank holding company. For |
4 | | the purpose of
this Section a "person" will include |
5 | | only those persons which a bank holding
company may |
6 | | acquire and hold an interest in, directly or |
7 | | indirectly, under the
provisions of the Bank Holding |
8 | | Company Act of 1956 (12 U.S.C. 1841, et seq.),
except |
9 | | where interests in any person must be disposed of |
10 | | within certain
required time limits under the Bank |
11 | | Holding Company Act of 1956.
|
12 | | (B) For purposes of subparagraph (A) of this |
13 | | paragraph, the term
"bank" includes (i) any entity |
14 | | that is regulated by the Comptroller of the
Currency |
15 | | under the National Bank Act, or by the Federal Reserve |
16 | | Board, or by
the
Federal Deposit Insurance Corporation |
17 | | and (ii) any federally or State chartered
bank
|
18 | | operating as a credit card bank.
|
19 | | (C) For purposes of subparagraph (A) of this |
20 | | paragraph, the term
"sales finance company" has the |
21 | | meaning provided in the following item (i) or
(ii):
|
22 | | (i) A person primarily engaged in one or more |
23 | | of the following
businesses: the business of |
24 | | purchasing customer receivables, the business
of |
25 | | making loans upon the security of customer |
26 | | receivables, the
business of making loans for the |
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1 | | express purpose of funding purchases of
tangible |
2 | | personal property or services by the borrower, or |
3 | | the business of
finance leasing. For purposes of |
4 | | this item (i), "customer receivable"
means:
|
5 | | (a) a retail installment contract or |
6 | | retail charge agreement within
the
meaning
of |
7 | | the Sales Finance Agency Act, the Retail |
8 | | Installment Sales Act, or the
Motor Vehicle |
9 | | Retail Installment Sales Act;
|
10 | | (b) an installment, charge, credit, or |
11 | | similar contract or agreement
arising from
the |
12 | | sale of tangible personal property or services |
13 | | in a transaction involving
a deferred payment |
14 | | price payable in one or more installments |
15 | | subsequent
to the sale; or
|
16 | | (c) the outstanding balance of a contract |
17 | | or agreement described in
provisions
(a) or |
18 | | (b) of this item (i).
|
19 | | A customer receivable need not provide for |
20 | | payment of interest on
deferred
payments. A sales |
21 | | finance company may purchase a customer receivable |
22 | | from, or
make a loan secured by a customer |
23 | | receivable to, the seller in the original
|
24 | | transaction or to a person who purchased the |
25 | | customer receivable directly or
indirectly from |
26 | | that seller.
|
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1 | | (ii) A corporation meeting each of the |
2 | | following criteria:
|
3 | | (a) the corporation must be a member of an |
4 | | "affiliated group" within
the
meaning of |
5 | | Section 1504(a) of the Internal Revenue Code, |
6 | | determined
without regard to Section 1504(b) |
7 | | of the Internal Revenue Code;
|
8 | | (b) more than 50% of the gross income of |
9 | | the corporation for the
taxable
year
must be |
10 | | interest income derived from qualifying loans. |
11 | | A "qualifying
loan" is a loan made to a member |
12 | | of the corporation's affiliated group that
|
13 | | originates customer receivables (within the |
14 | | meaning of item (i)) or to whom
customer |
15 | | receivables originated by a member of the |
16 | | affiliated group have been
transferred, to
the |
17 | | extent the average outstanding balance of |
18 | | loans from that corporation
to members of its |
19 | | affiliated group during the taxable year do |
20 | | not exceed
the limitation amount for that |
21 | | corporation. The "limitation amount" for a
|
22 | | corporation is the average outstanding |
23 | | balances during the taxable year of
customer |
24 | | receivables (within the meaning of item (i)) |
25 | | originated by
all members of the affiliated |
26 | | group.
If the average outstanding balances of |
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1 | | the
loans made by a corporation to members of |
2 | | its affiliated group exceed the
limitation |
3 | | amount, the interest income of that |
4 | | corporation from qualifying
loans shall be |
5 | | equal to its interest income from loans to |
6 | | members of its
affiliated groups times a |
7 | | fraction equal to the limitation amount |
8 | | divided by
the average outstanding balances of |
9 | | the loans made by that corporation to
members |
10 | | of its affiliated group;
|
11 | | (c) the total of all shareholder's equity |
12 | | (including, without
limitation,
paid-in
|
13 | | capital on common and preferred stock and |
14 | | retained earnings) of the
corporation plus the |
15 | | total of all of its loans, advances, and other
|
16 | | obligations payable or owed to members of its |
17 | | affiliated group may not
exceed 20% of the |
18 | | total assets of the corporation at any time |
19 | | during the tax
year; and
|
20 | | (d) more than 50% of all interest-bearing |
21 | | obligations of the
affiliated group payable to |
22 | | persons outside the group determined in |
23 | | accordance
with generally accepted accounting |
24 | | principles must be obligations of the
|
25 | | corporation.
|
26 | | This amendatory Act of the 91st General Assembly |
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|
|
1 | | is declaratory of
existing
law.
|
2 | | (D) Subparagraphs
(B) and (C) of this paragraph |
3 | | are declaratory of
existing law and apply |
4 | | retroactively, for all tax years beginning on or |
5 | | before
December 31, 1996,
to all original returns, to |
6 | | all amended returns filed no later than 30
days after |
7 | | the effective date of this amendatory Act of 1996, and |
8 | | to all
notices issued on or before the effective date |
9 | | of this amendatory Act of 1996
under subsection (a) of |
10 | | Section 903, subsection (a) of Section 904,
subsection |
11 | | (e) of Section 909, or Section 912.
A taxpayer that is |
12 | | a "financial organization" that engages in any |
13 | | transaction
with an affiliate shall be a "financial |
14 | | organization" for all purposes of this
Act.
|
15 | | (E) For all tax years beginning on or
before |
16 | | December 31, 1996, a taxpayer that falls within the |
17 | | definition
of a
"financial organization" under |
18 | | subparagraphs (B) or (C) of this paragraph, but
who |
19 | | does
not fall within the definition of a "financial |
20 | | organization" under the Proposed
Regulations issued by |
21 | | the Department of Revenue on July 19, 1996, may
|
22 | | irrevocably elect to apply the Proposed Regulations |
23 | | for all of those years as
though the Proposed |
24 | | Regulations had been lawfully promulgated, adopted, |
25 | | and in
effect for all of those years. For purposes of |
26 | | applying subparagraphs (B) or
(C) of
this
paragraph to |
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1 | | all of those years, the election allowed by this |
2 | | subparagraph
applies only to the taxpayer making the |
3 | | election and to those members of the
taxpayer's |
4 | | unitary business group who are ordinarily required to |
5 | | apportion
business income under the same subsection of |
6 | | Section 304 of this Act as the
taxpayer making the |
7 | | election. No election allowed by this subparagraph |
8 | | shall
be made under a claim
filed under subsection (d) |
9 | | of Section 909 more than 30 days after the
effective |
10 | | date of this amendatory Act of 1996.
|
11 | | (F) Finance Leases. For purposes of this |
12 | | subsection, a finance lease
shall be treated as a loan |
13 | | or other extension of credit, rather than as a
lease,
|
14 | | regardless of how the transaction is characterized for |
15 | | any other purpose,
including the purposes of any |
16 | | regulatory agency to which the lessor is subject.
A |
17 | | finance lease is any transaction in the form of a lease |
18 | | in which the lessee
is treated as the owner of the |
19 | | leased asset entitled to any deduction for
|
20 | | depreciation allowed under Section 167 of the Internal |
21 | | Revenue Code.
|
22 | | (9) Fiscal year. The term "fiscal year" means an |
23 | | accounting period of
12 months ending on the last day of |
24 | | any month other than December.
|
25 | | (9.5) Fixed place of business. The term "fixed place |
26 | | of business" has the same meaning as that term is given in |
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1 | | Section 864 of the Internal Revenue Code and the related |
2 | | Treasury regulations. |
3 | | (10) Includes and including. The terms "includes" and |
4 | | "including" when
used in a definition contained in this |
5 | | Act shall not be deemed to exclude
other things otherwise |
6 | | within the meaning of the term defined.
|
7 | | (11) Internal Revenue Code. The term "Internal Revenue |
8 | | Code" means the
United States Internal Revenue Code of |
9 | | 1954 or any successor law or laws
relating to federal |
10 | | income taxes in effect for the taxable year.
|
11 | | (11.5) Investment partnership. |
12 | | (A) For tax years ending before December 31, 2023, |
13 | | the The term "investment partnership" means any entity |
14 | | that is treated as a partnership for federal income |
15 | | tax purposes that meets the following requirements: |
16 | | (i) no less than 90% of the partnership's cost |
17 | | of its total assets consists of qualifying |
18 | | investment securities, deposits at banks or other |
19 | | financial institutions, and office space and |
20 | | equipment reasonably necessary to carry on its |
21 | | activities as an investment partnership; |
22 | | (ii) no less than 90% of its gross income |
23 | | consists of interest, dividends, and gains from |
24 | | the sale or exchange of qualifying investment |
25 | | securities; and
|
26 | | (iii) the partnership is not a dealer in |
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1 | | qualifying investment securities. |
2 | | (A-5) For tax years ending on or after December |
3 | | 31, 2023, the term "investment partnership" means any |
4 | | entity that is treated as a partnership for federal |
5 | | income tax purposes that meets the following |
6 | | requirements: |
7 | | (i) no less than 90% of the partnership's cost |
8 | | of its total assets consists of qualifying |
9 | | investment securities, deposits at banks or other |
10 | | financial institutions, and office space and |
11 | | equipment reasonably necessary to carry on its |
12 | | activities as an investment partnership; and |
13 | | (ii) no less than 90% of its gross income |
14 | | consists of interest, dividends, gains from the |
15 | | sale or exchange of qualifying investment |
16 | | securities, and the distributive share of |
17 | | partnership income from lower-tier partnership |
18 | | interests meeting the definition of qualifying |
19 | | investment security under subparagraph (B)(xiii); |
20 | | for the purposes of this subparagraph (ii), "gross |
21 | | income" does not include income from partnerships |
22 | | that are operating at a federal taxable loss. |
23 | | (B) For purposes of this paragraph (11.5), the |
24 | | term "qualifying investment securities" (other than, |
25 | | for tax years ending on or after December 31, 2023, |
26 | | securities with respect to which the taxpayer is |
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1 | | required to apply the rules of Internal Revenue Code |
2 | | Section 475(a)) includes all of the following:
|
3 | | (i) common stock, including preferred or debt |
4 | | securities convertible into common stock, and |
5 | | preferred stock; |
6 | | (ii) bonds, debentures, and other debt |
7 | | securities; |
8 | | (iii) foreign and domestic currency deposits |
9 | | secured by federal, state, or local governmental |
10 | | agencies; |
11 | | (iv) mortgage or asset-backed securities |
12 | | secured by federal, state, or local governmental |
13 | | agencies; |
14 | | (v) repurchase agreements and loan |
15 | | participations; |
16 | | (vi) foreign currency exchange contracts and |
17 | | forward and futures contracts on foreign |
18 | | currencies; |
19 | | (vii) stock and bond index securities and |
20 | | futures contracts and other similar financial |
21 | | securities and futures contracts on those |
22 | | securities;
|
23 | | (viii) options for the purchase or sale of any |
24 | | of the securities, currencies, contracts, or |
25 | | financial instruments described in items (i) to |
26 | | (vii), inclusive;
|
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1 | | (ix) regulated futures contracts;
|
2 | | (x) commodities (not described in Section |
3 | | 1221(a)(1) of the Internal Revenue Code) or |
4 | | futures, forwards, and options with respect to |
5 | | such commodities, provided, however, that any item |
6 | | of a physical commodity to which title is actually |
7 | | acquired in the partnership's capacity as a dealer |
8 | | in such commodity shall not be a qualifying |
9 | | investment security;
|
10 | | (xi) derivatives; and
|
11 | | (xii) a partnership interest in another |
12 | | partnership that is an investment partnership ; and |
13 | | .
|
14 | | (xiii) for tax years ending on or after |
15 | | December 31, 2023, a partnership interest that, in |
16 | | the hands of the partnership, qualifies as a |
17 | | security within the meaning of subsection (a)(1) |
18 | | of Subchapter 77b of Chapter 2A of Title 15 of the |
19 | | United States Code. |
20 | | (12) Mathematical error. The term "mathematical error" |
21 | | includes the
following types of errors, omissions, or |
22 | | defects in a return filed by a
taxpayer which prevents |
23 | | acceptance of the return as filed for processing:
|
24 | | (A) arithmetic errors or incorrect computations on |
25 | | the return or
supporting schedules;
|
26 | | (B) entries on the wrong lines;
|
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1 | | (C) omission of required supporting forms or |
2 | | schedules or the omission
of the information in whole |
3 | | or in part called for thereon; and
|
4 | | (D) an attempt to claim, exclude, deduct, or |
5 | | improperly report, in a
manner
directly contrary to |
6 | | the provisions of the Act and regulations thereunder
|
7 | | any item of income, exemption, deduction, or credit.
|
8 | | (13) Nonbusiness income. The term "nonbusiness income" |
9 | | means all income
other than business income or |
10 | | compensation.
|
11 | | (14) Nonresident. The term "nonresident" means a |
12 | | person who is not a
resident.
|
13 | | (15) Paid, incurred and accrued. The terms "paid", |
14 | | "incurred" and
"accrued"
shall be construed according to |
15 | | the method of accounting upon the basis
of which the |
16 | | person's base income is computed under this Act.
|
17 | | (16) Partnership and partner. The term "partnership" |
18 | | includes a syndicate,
group, pool, joint venture or other |
19 | | unincorporated organization, through
or by means of which |
20 | | any business, financial operation, or venture is carried
|
21 | | on, and which is not, within the meaning of this Act, a |
22 | | trust or estate
or a corporation; and the term "partner" |
23 | | includes a member in such syndicate,
group, pool, joint |
24 | | venture or organization.
|
25 | | The term "partnership" includes any entity, including |
26 | | a limited
liability company formed under the Illinois
|
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1 | | Limited Liability Company Act, classified as a partnership |
2 | | for federal income tax purposes.
|
3 | | The term "partnership" does not include a syndicate, |
4 | | group, pool,
joint venture, or other unincorporated |
5 | | organization established for the
sole purpose of playing |
6 | | the Illinois State Lottery.
|
7 | | (17) Part-year resident. The term "part-year resident" |
8 | | means an individual
who became a resident during the |
9 | | taxable year or ceased to be a resident
during the taxable |
10 | | year. Under Section 1501(a)(20)(A)(i) residence
commences |
11 | | with presence in this State for other than a temporary or |
12 | | transitory
purpose and ceases with absence from this State |
13 | | for other than a temporary or
transitory purpose. Under |
14 | | Section 1501(a)(20)(A)(ii) residence commences
with the |
15 | | establishment of domicile in this State and ceases with |
16 | | the
establishment of domicile in another State.
|
17 | | (18) Person. The term "person" shall be construed to |
18 | | mean and include
an individual, a trust, estate, |
19 | | partnership, association, firm, company,
corporation, |
20 | | limited liability company, or fiduciary. For purposes of |
21 | | Section
1301 and 1302 of this Act, a "person" means (i) an |
22 | | individual, (ii) a
corporation, (iii) an officer, agent, |
23 | | or employee of a
corporation, (iv) a member, agent or |
24 | | employee of a partnership, or (v)
a member,
manager, |
25 | | employee, officer, director, or agent of a limited |
26 | | liability company
who in such capacity commits an offense |
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1 | | specified in Section 1301 and 1302.
|
2 | | (18A) Records. The term "records" includes all data |
3 | | maintained by the
taxpayer, whether on paper, microfilm, |
4 | | microfiche, or any type of
machine-sensible data |
5 | | compilation.
|
6 | | (19) Regulations. The term "regulations" includes |
7 | | rules promulgated and
forms prescribed by the Department.
|
8 | | (20) Resident. The term "resident" means:
|
9 | | (A) an individual (i) who is
in this State for |
10 | | other than a temporary or transitory purpose during |
11 | | the
taxable year; or (ii) who is domiciled in this |
12 | | State but is absent from
the State for a temporary or |
13 | | transitory purpose during the taxable year;
|
14 | | (B) The estate of a decedent who at his or her |
15 | | death was domiciled in
this
State;
|
16 | | (C) A trust created by a will of a decedent who at |
17 | | his death was
domiciled
in this State; and
|
18 | | (D) An irrevocable trust, the grantor of which was |
19 | | domiciled in this
State
at the time such trust became |
20 | | irrevocable. For purpose of this subparagraph,
a trust |
21 | | shall be considered irrevocable to the extent that the |
22 | | grantor is
not treated as the owner thereof under |
23 | | Sections 671 through 678 of the Internal
Revenue Code.
|
24 | | (21) Sales. The term "sales" means all gross receipts |
25 | | of the taxpayer
not allocated under Sections 301, 302 and |
26 | | 303.
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1 | | (22) State. The term "state" when applied to a |
2 | | jurisdiction other than
this State means any state of the |
3 | | United States, the District of Columbia,
the Commonwealth |
4 | | of Puerto Rico, any Territory or Possession of the United
|
5 | | States, and any foreign country, or any political |
6 | | subdivision of any of the
foregoing. For purposes of the |
7 | | foreign tax credit under Section 601, the
term "state" |
8 | | means any state of the United States, the District of |
9 | | Columbia,
the Commonwealth of Puerto Rico, and any |
10 | | territory or possession of the
United States, or any |
11 | | political subdivision of any of the foregoing,
effective |
12 | | for tax years ending on or after December 31, 1989.
|
13 | | (23) Taxable year. The term "taxable year" means the |
14 | | calendar year, or
the fiscal year ending during such |
15 | | calendar year, upon the basis of which
the base income is |
16 | | computed under this Act. "Taxable year" means, in the
case |
17 | | of a return made for a fractional part of a year under the |
18 | | provisions
of this Act, the period for which such return |
19 | | is made.
|
20 | | (24) Taxpayer. The term "taxpayer" means any person |
21 | | subject to the tax
imposed by this Act.
|
22 | | (25) International banking facility. The term |
23 | | international banking
facility shall have the same meaning |
24 | | as is set forth in the Illinois Banking
Act or as is set |
25 | | forth in the laws of the United States or regulations of
|
26 | | the Board of Governors of the Federal Reserve System.
|
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1 | | (26) Income Tax Return Preparer.
|
2 | | (A) The term "income tax return preparer"
means |
3 | | any person who prepares for compensation, or who |
4 | | employs one or more
persons to prepare for |
5 | | compensation, any return of tax imposed by this Act
or |
6 | | any claim for refund of tax imposed by this Act. The |
7 | | preparation of a
substantial portion of a return or |
8 | | claim for refund shall be treated as
the preparation |
9 | | of that return or claim for refund.
|
10 | | (B) A person is not an income tax return preparer |
11 | | if all he or she does
is
|
12 | | (i) furnish typing, reproducing, or other |
13 | | mechanical assistance;
|
14 | | (ii) prepare returns or claims for refunds for |
15 | | the employer by whom he
or she is regularly and |
16 | | continuously employed;
|
17 | | (iii) prepare as a fiduciary returns or claims |
18 | | for refunds for any
person; or
|
19 | | (iv) prepare claims for refunds for a taxpayer |
20 | | in response to any
notice
of deficiency issued to |
21 | | that taxpayer or in response to any waiver of
|
22 | | restriction after the commencement of an audit of |
23 | | that taxpayer or of another
taxpayer if a |
24 | | determination in the audit of the other taxpayer |
25 | | directly or
indirectly affects the tax liability |
26 | | of the taxpayer whose claims he or she is
|
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1 | | preparing.
|
2 | | (27) Unitary business group. |
3 | | (A) The term "unitary business group" means
a |
4 | | group of persons related through common ownership |
5 | | whose business activities
are integrated with, |
6 | | dependent upon and contribute to each other. The group
|
7 | | will not include those members whose business activity |
8 | | outside the United
States is 80% or more of any such |
9 | | member's total business activity; for
purposes of this |
10 | | paragraph and clause (a)(3)(B)(ii) of Section 304,
|
11 | | business
activity within the United States shall be |
12 | | measured by means of the factors
ordinarily applicable |
13 | | under subsections (a), (b), (c), (d), or (h)
of |
14 | | Section
304 except that, in the case of members |
15 | | ordinarily required to apportion
business income by |
16 | | means of the 3 factor formula of property, payroll and |
17 | | sales
specified in subsection (a) of Section 304, |
18 | | including the
formula as weighted in subsection (h) of |
19 | | Section 304, such members shall
not use the sales |
20 | | factor in the computation and the results of the |
21 | | property
and payroll factor computations of subsection |
22 | | (a) of Section 304 shall be
divided by 2 (by one if |
23 | | either
the property or payroll factor has a |
24 | | denominator of zero). The computation
required by the |
25 | | preceding sentence shall, in each case, involve the |
26 | | division of
the member's property, payroll, or revenue |
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1 | | miles in the United States,
insurance premiums on |
2 | | property or risk in the United States, or financial
|
3 | | organization business income from sources within the |
4 | | United States, as the
case may be, by the respective |
5 | | worldwide figures for such items. Common
ownership in |
6 | | the case of corporations is the direct or indirect |
7 | | control or
ownership of more than 50% of the |
8 | | outstanding voting stock of the persons
carrying on |
9 | | unitary business activity. Unitary business activity |
10 | | can
ordinarily be illustrated where the activities of |
11 | | the members are: (1) in the
same general line (such as |
12 | | manufacturing, wholesaling, retailing of tangible
|
13 | | personal property, insurance, transportation or |
14 | | finance); or (2) are steps in a
vertically structured |
15 | | enterprise or process (such as the steps involved in |
16 | | the
production of natural resources, which might |
17 | | include exploration, mining,
refining, and marketing); |
18 | | and, in either instance, the members are functionally
|
19 | | integrated through the exercise of strong centralized |
20 | | management (where, for
example, authority over such |
21 | | matters as purchasing, financing, tax compliance,
|
22 | | product line, personnel, marketing and capital |
23 | | investment is not left to each
member).
|
24 | | (B) In no event, for taxable years ending prior to |
25 | | December 31, 2017, shall any
unitary business group |
26 | | include members
which are ordinarily required to |
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1 | | apportion business income under different
subsections |
2 | | of Section 304 except that for tax years ending on or |
3 | | after
December 31, 1987 this prohibition shall not |
4 | | apply to a holding company that would otherwise be a |
5 | | member of a unitary business group with taxpayers that |
6 | | apportion business income under any of subsections |
7 | | (b), (c), (c-1), or (d) of Section 304. If a unitary |
8 | | business
group would, but for the preceding sentence, |
9 | | include members that are
ordinarily required to |
10 | | apportion business income under different subsections |
11 | | of
Section 304, then for each subsection of Section |
12 | | 304 for which there are two or
more members, there |
13 | | shall be a separate unitary business group composed of |
14 | | such
members. For purposes of the preceding two |
15 | | sentences, a member is "ordinarily
required to |
16 | | apportion business income" under a particular |
17 | | subsection of Section
304 if it would be required to |
18 | | use the apportionment method prescribed by such
|
19 | | subsection except for the fact that it derives |
20 | | business income solely from
Illinois. As used in this |
21 | | paragraph, for taxable years ending before December |
22 | | 31, 2017, the phrase "United States" means only the 50 |
23 | | states and the District of Columbia, but does not |
24 | | include any territory or possession of the United |
25 | | States or any area over which the United States has |
26 | | asserted jurisdiction or claimed exclusive rights with |
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1 | | respect to the exploration for or exploitation of |
2 | | natural resources.
For taxable years ending on or |
3 | | after December 31, 2017, the phrase "United States", |
4 | | as used in this paragraph, means only the 50 states, |
5 | | the District of Columbia, and any area over which the |
6 | | United States has asserted jurisdiction or claimed |
7 | | exclusive rights with respect to the exploration for |
8 | | or exploitation of natural resources, but does not |
9 | | include any territory or possession of the United |
10 | | States. |
11 | | (C) Holding companies. |
12 | | (i) For purposes of this subparagraph, a |
13 | | "holding company" is a corporation (other than a |
14 | | corporation that is a financial organization under |
15 | | paragraph (8) of this subsection (a) of Section |
16 | | 1501 because it is a bank holding company under |
17 | | the provisions of the Bank Holding Company Act of |
18 | | 1956 (12 U.S.C. 1841, et seq.) or because it is |
19 | | owned by a bank or a bank holding company) that |
20 | | owns a controlling interest in one or more other |
21 | | taxpayers ("controlled taxpayers"); that, during |
22 | | the period that includes the taxable year and the |
23 | | 2 immediately preceding taxable years or, if the |
24 | | corporation was formed during the current or |
25 | | immediately preceding taxable year, the taxable |
26 | | years in which the corporation has been in |
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1 | | existence, derived substantially all its gross |
2 | | income from dividends, interest, rents, royalties, |
3 | | fees or other charges received from controlled |
4 | | taxpayers for the provision of services, and gains |
5 | | on the sale or other disposition of interests in |
6 | | controlled taxpayers or in property leased or |
7 | | licensed to controlled taxpayers or used by the |
8 | | taxpayer in providing services to controlled |
9 | | taxpayers; and that incurs no substantial expenses |
10 | | other than expenses (including interest and other |
11 | | costs of borrowing) incurred in connection with |
12 | | the acquisition and holding of interests in |
13 | | controlled taxpayers and in the provision of |
14 | | services to controlled taxpayers or in the leasing |
15 | | or licensing of property to controlled taxpayers. |
16 | | (ii) The income of a holding company which is |
17 | | a member of more than one unitary business group |
18 | | shall be included in each unitary business group |
19 | | of which it is a member on a pro rata basis, by |
20 | | including in each unitary business group that |
21 | | portion of the base income of the holding company |
22 | | that bears the same proportion to the total base |
23 | | income of the holding company as the gross |
24 | | receipts of the unitary business group bears to |
25 | | the combined gross receipts of all unitary |
26 | | business groups (in both cases without regard to |
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1 | | the holding company) or on any other reasonable |
2 | | basis, consistently applied. |
3 | | (iii) A holding company shall apportion its |
4 | | business income under the subsection of Section |
5 | | 304 used by the other members of its unitary |
6 | | business group. The apportionment factors of a |
7 | | holding company which would be a member of more |
8 | | than one unitary business group shall be included |
9 | | with the apportionment factors of each unitary |
10 | | business group of which it is a member on a pro |
11 | | rata basis using the same method used in clause |
12 | | (ii). |
13 | | (iv) The provisions of this subparagraph (C) |
14 | | are intended to clarify existing law. |
15 | | (D) If including the base income and factors of a |
16 | | holding company in more than one unitary business |
17 | | group under subparagraph (C) does not fairly reflect |
18 | | the degree of integration between the holding company |
19 | | and one or more of the unitary business groups, the |
20 | | dependence of the holding company and one or more of |
21 | | the unitary business groups upon each other, or the |
22 | | contributions between the holding company and one or |
23 | | more of the unitary business groups, the holding |
24 | | company may petition the Director, under the |
25 | | procedures provided under Section 304(f), for |
26 | | permission to include all base income and factors of |
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1 | | the holding company only with members of a unitary |
2 | | business group apportioning their business income |
3 | | under one subsection of subsections (a), (b), (c), or |
4 | | (d) of Section 304. If the petition is granted, the |
5 | | holding company shall be included in a unitary |
6 | | business group only with persons apportioning their |
7 | | business income under the selected subsection of |
8 | | Section 304 until the Director grants a petition of |
9 | | the holding company either to be included in more than |
10 | | one unitary business group under subparagraph (C) or |
11 | | to include its base income and factors only with |
12 | | members of a unitary business group apportioning their |
13 | | business income under a different subsection of |
14 | | Section 304. |
15 | | (E) If the unitary business group members' |
16 | | accounting periods differ,
the common parent's |
17 | | accounting period or, if there is no common parent, |
18 | | the
accounting period of the member that is expected |
19 | | to have, on a recurring basis,
the greatest Illinois |
20 | | income tax liability must be used to determine whether |
21 | | to
use the apportionment method provided in subsection |
22 | | (a) or subsection (h) of
Section 304. The
prohibition |
23 | | against membership in a unitary business group for |
24 | | taxpayers
ordinarily required to apportion income |
25 | | under different subsections of Section
304 does not |
26 | | apply to taxpayers required to apportion income under |
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1 | | subsection
(a) and subsection (h) of Section
304. The |
2 | | provisions of this amendatory Act of 1998 apply to tax
|
3 | | years ending on or after December 31, 1998.
|
4 | | (28) Subchapter S corporation. The term "Subchapter S |
5 | | corporation"
means a corporation for which there is in |
6 | | effect an election under Section
1362 of the Internal |
7 | | Revenue Code, or for which there is a federal election
to |
8 | | opt out of the provisions of the Subchapter S Revision Act |
9 | | of 1982 and
have applied instead the prior federal |
10 | | Subchapter S rules as in effect on July
1, 1982.
|
11 | | (30) Foreign person. The term "foreign person" means |
12 | | any person who is a nonresident individual who is a |
13 | | national or citizen of a country other than the United |
14 | | States and any nonindividual entity, regardless of where |
15 | | created or organized, whose business activity outside the |
16 | | United States is 80% or more of the entity's total |
17 | | business activity.
|
18 | | (b) Other definitions.
|
19 | | (1) Words denoting number, gender, and so forth,
when |
20 | | used in this Act, where not otherwise distinctly expressed |
21 | | or manifestly
incompatible with the intent thereof:
|
22 | | (A) Words importing the singular include and apply |
23 | | to several persons,
parties or things;
|
24 | | (B) Words importing the plural include the |
25 | | singular; and
|
26 | | (C) Words importing the masculine gender include |
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1 | | the feminine as well.
|
2 | | (2) "Company" or "association" as including successors |
3 | | and assigns. The
word "company" or "association", when |
4 | | used in reference to a corporation,
shall be deemed to |
5 | | embrace the words "successors and assigns of such company
|
6 | | or association", and in like manner as if these last-named |
7 | | words, or words
of similar import, were expressed.
|
8 | | (3) Other terms. Any term used in any Section of this |
9 | | Act with respect
to the application of, or in connection |
10 | | with, the provisions of any other
Section of this Act |
11 | | shall have the same meaning as in such other Section.
|
12 | | (Source: P.A. 102-1030, eff. 5-27-22.)
|
13 | | ARTICLE 55. ANGEL INVESTMENT CREDIT |
14 | | Section 55-5. The Illinois Income Tax Act is amended by |
15 | | changing Section 220 as follows: |
16 | | (35 ILCS 5/220) |
17 | | Sec. 220. Angel investment credit. |
18 | | (a) As used in this Section: |
19 | | "Applicant" means a corporation, partnership, limited |
20 | | liability company, or a natural person that makes an |
21 | | investment in a qualified new business venture. The term |
22 | | "applicant" does not include (i) a corporation, partnership, |
23 | | limited liability company, or a natural person who has a |
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1 | | direct or indirect ownership interest of at least 51% in the |
2 | | profits, capital, or value of the qualified new business |
3 | | venture receiving the investment or (ii) a related member. |
4 | | "Claimant" means an applicant certified by the Department |
5 | | who files a claim for a credit under this Section. |
6 | | "Department" means the Department of Commerce and Economic |
7 | | Opportunity. |
8 | | "Investment" means money (or its equivalent) given to a |
9 | | qualified new business venture, at a risk of loss, in |
10 | | consideration for an equity interest of the qualified new |
11 | | business venture. The Department may adopt rules to permit |
12 | | certain forms of contingent equity investments to be |
13 | | considered eligible for a tax credit under this Section. |
14 | | "Qualified new business venture" means a business that is |
15 | | registered with the Department under this Section. |
16 | | "Related member" means a person that, with respect to the
|
17 | | applicant, is any one of the following: |
18 | | (1) An individual, if the individual and the members |
19 | | of the individual's family (as defined in Section 318 of |
20 | | the Internal Revenue Code) own directly, indirectly,
|
21 | | beneficially, or constructively, in the aggregate, at |
22 | | least 50% of the value of the outstanding profits, |
23 | | capital, stock, or other ownership interest in the |
24 | | qualified new business venture that is the recipient of |
25 | | the applicant's investment. |
26 | | (2) A partnership, estate, or trust and any partner or |
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1 | | beneficiary, if the partnership, estate, or trust and its |
2 | | partners or beneficiaries own directly, indirectly, |
3 | | beneficially, or constructively, in the aggregate, at |
4 | | least 50% of the profits, capital, stock, or other |
5 | | ownership interest in the qualified new business venture |
6 | | that is the recipient of the applicant's investment. |
7 | | (3) A corporation, and any party related to the |
8 | | corporation in a manner that would require an attribution |
9 | | of stock from the corporation under the attribution rules
|
10 | | of Section 318 of the Internal Revenue Code, if the |
11 | | applicant and any other related member own, in the |
12 | | aggregate, directly, indirectly, beneficially, or |
13 | | constructively, at least 50% of the value of the |
14 | | outstanding stock of the qualified new business venture |
15 | | that is the recipient of the applicant's investment. |
16 | | (4) A corporation and any party related to that |
17 | | corporation in a manner that would require an attribution |
18 | | of stock from the corporation to the party or from the
|
19 | | party to the corporation under the attribution rules of |
20 | | Section 318 of the Internal Revenue Code, if the |
21 | | corporation and all such related parties own, in the |
22 | | aggregate, at least 50% of the profits, capital, stock, or |
23 | | other ownership interest in the qualified new business |
24 | | venture that is the recipient of the applicant's |
25 | | investment. |
26 | | (5) A person to or from whom there is attribution of |
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1 | | ownership of stock in the qualified new business venture |
2 | | that is the recipient of the applicant's investment in |
3 | | accordance with Section 1563(e) of the Internal Revenue |
4 | | Code, except that for purposes of determining whether a |
5 | | person is a related member under this paragraph, "20%" |
6 | | shall be substituted for "5%" whenever "5%" appears in |
7 | | Section 1563(e) of the Internal Revenue Code. |
8 | | (b) For taxable years beginning after December 31, 2010, |
9 | | and ending on or before December 31, 2026, subject to the |
10 | | limitations provided in this Section, a claimant may claim, as |
11 | | a credit against the tax imposed under subsections (a) and (b) |
12 | | of Section 201 of this Act, an amount equal to 25% of the |
13 | | claimant's investment made directly in a qualified new |
14 | | business venture. However, the amount of the credit is 35% of |
15 | | the claimant's investment made directly in the qualified new |
16 | | business venture if the investment is made in: (1) a qualified |
17 | | new business venture that is a minority-owned business, a |
18 | | women-owned business, or a business owned a person with a |
19 | | disability (as those terms are used and defined in the |
20 | | Business Enterprise for Minorities, Women, and Persons with |
21 | | Disabilities Act); or (2) a qualified new business venture in |
22 | | which the principal place of business is located in a county |
23 | | with a population of not more than 250,000. In order for an |
24 | | investment in a qualified new business venture to be eligible |
25 | | for tax credits, the business must have applied for and |
26 | | received certification under subsection (e) for the taxable |
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1 | | year in which the investment was made prior to the date on |
2 | | which the investment was made. The credit under this Section |
3 | | may not exceed the taxpayer's Illinois income tax liability |
4 | | for the taxable year. If the amount of the credit exceeds the |
5 | | tax liability for the year, the excess may be carried forward |
6 | | and applied to the tax liability of the 5 taxable years |
7 | | following the excess credit year. The credit shall be applied |
8 | | to the earliest year for which there is a tax liability. If |
9 | | there are credits from more than one tax year that are |
10 | | available to offset a liability, the earlier credit shall be |
11 | | applied first. In the case of a partnership or Subchapter S |
12 | | Corporation, the credit is allowed to the partners or |
13 | | shareholders in accordance with the determination of income |
14 | | and distributive share of income under Sections 702 and 704 |
15 | | and Subchapter S of the Internal Revenue Code. |
16 | | (c) The minimum amount an applicant must invest in any |
17 | | single qualified new business venture in order to be eligible |
18 | | for a credit under this Section is $10,000. The maximum amount |
19 | | of an applicant's total investment made in any single |
20 | | qualified new business venture that may be used as the basis |
21 | | for a credit under this Section is $2,000,000. |
22 | | (d) The Department shall implement a program to certify an |
23 | | applicant for an angel investment credit. Upon satisfactory |
24 | | review, the Department shall issue a tax credit certificate |
25 | | stating the amount of the tax credit to which the applicant is |
26 | | entitled. The Department shall annually certify that: (i) each |
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1 | | qualified new business venture that receives an angel |
2 | | investment under this Section has maintained a minimum |
3 | | employment threshold, as defined by rule, in the State (and |
4 | | continues to maintain a minimum employment threshold in the |
5 | | State for a period of no less than 3 years from the issue date |
6 | | of the last tax credit certificate issued by the Department |
7 | | with respect to such business pursuant to this Section); and |
8 | | (ii) the claimant's investment has been made and remains, |
9 | | except in the event of a qualifying liquidity event, in the |
10 | | qualified new business venture for no less than 3 years. |
11 | | If an investment for which a claimant is allowed a credit |
12 | | under subsection (b) is held by the claimant for less than 3 |
13 | | years, other than as a result of a permitted sale of the |
14 | | investment to person who is not a related member, the claimant |
15 | | shall pay to the Department of Revenue, in the manner |
16 | | prescribed by the Department of Revenue, the aggregate amount |
17 | | of the disqualified credits that the claimant received related |
18 | | to the subject investment. |
19 | | If the Department determines that a qualified new business |
20 | | venture failed to maintain a minimum employment threshold in |
21 | | the State through the date which is 3 years from the issue date |
22 | | of the last tax credit certificate issued by the Department |
23 | | with respect to the subject business pursuant to this Section, |
24 | | the claimant or claimants shall pay to the Department of |
25 | | Revenue, in the manner prescribed by the Department of |
26 | | Revenue, the aggregate amount of the disqualified credits that |
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1 | | claimant or claimants received related to investments in that |
2 | | business. |
3 | | (e) The Department shall implement a program to register |
4 | | qualified new business ventures for purposes of this Section. |
5 | | A business desiring registration under this Section shall be |
6 | | required to submit a full and complete application to the |
7 | | Department. A submitted application shall be effective only |
8 | | for the taxable year in which it is submitted, and a business |
9 | | desiring registration under this Section shall be required to |
10 | | submit a separate application in and for each taxable year for |
11 | | which the business desires registration. Further, if at any |
12 | | time prior to the acceptance of an application for |
13 | | registration under this Section by the Department one or more |
14 | | events occurs which makes the information provided in that |
15 | | application materially false or incomplete (in whole or in |
16 | | part), the business shall promptly notify the Department of |
17 | | the same. Any failure of a business to promptly provide the |
18 | | foregoing information to the Department may, at the discretion |
19 | | of the Department, result in a revocation of a previously |
20 | | approved application for that business, or disqualification of |
21 | | the business from future registration under this Section, or |
22 | | both. The Department may register the business only if all of |
23 | | the following conditions are satisfied: |
24 | | (1) it has its principal place of business in this |
25 | | State; |
26 | | (2) at least 51% of the employees employed by the |
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1 | | business are employed in this State; |
2 | | (3) the business has the potential for increasing jobs |
3 | | in this State, increasing capital investment in this |
4 | | State, or both, as determined by the Department, and |
5 | | either of the following apply: |
6 | | (A) it is principally engaged in innovation in any |
7 | | of the following: manufacturing; biotechnology; |
8 | | nanotechnology; communications; agricultural |
9 | | sciences; clean energy creation or storage technology; |
10 | | processing or assembling products, including medical |
11 | | devices, pharmaceuticals, computer software, computer |
12 | | hardware, semiconductors, other innovative technology |
13 | | products, or other products that are produced using |
14 | | manufacturing methods that are enabled by applying |
15 | | proprietary technology; or providing services that are |
16 | | enabled by applying proprietary technology; or |
17 | | (B) it is undertaking pre-commercialization |
18 | | activity related to proprietary technology that |
19 | | includes conducting research, developing a new product |
20 | | or business process, or developing a service that is |
21 | | principally reliant on applying proprietary |
22 | | technology; |
23 | | (4) it is not principally engaged in real estate |
24 | | development, insurance, banking, lending, lobbying, |
25 | | political consulting, professional services provided by |
26 | | attorneys, accountants, business consultants, physicians, |
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1 | | or health care consultants, wholesale or retail trade, |
2 | | leisure, hospitality, transportation, or construction, |
3 | | except construction of power production plants that derive |
4 | | energy from a renewable energy resource, as defined in |
5 | | Section 1 of the Illinois Power Agency Act; |
6 | | (5) at the time it is first certified: |
7 | | (A) it has fewer than 100 employees; |
8 | | (B) it has been in operation in Illinois for not |
9 | | more than 10 consecutive years prior to the year of |
10 | | certification; and |
11 | | (C) it has received not more than $10,000,000 in |
12 | | aggregate investments; |
13 | | (5.1) it agrees to maintain a minimum employment |
14 | | threshold in the State of Illinois prior to the date which |
15 | | is 3 years from the issue date of the last tax credit |
16 | | certificate issued by the Department with respect to that |
17 | | business pursuant to this Section; |
18 | | (6) (blank); and |
19 | | (7) it has received not more than $4,000,000 in |
20 | | investments that qualified for tax credits under this |
21 | | Section. |
22 | | (f) The Department, in consultation with the Department of |
23 | | Revenue, shall adopt rules to administer this Section. For |
24 | | taxable years beginning before January 1, 2024, the The |
25 | | aggregate amount of the tax credits that may be claimed under |
26 | | this Section for investments made in qualified new business |
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1 | | ventures shall be limited to at $10,000,000 per calendar year, |
2 | | of which $500,000 shall be reserved for investments made in |
3 | | qualified new business ventures which are minority-owned |
4 | | businesses, women-owned businesses, or businesses owned by a |
5 | | person with a disability (as those terms are used and defined |
6 | | in the Business Enterprise for Minorities, Women, and Persons |
7 | | with Disabilities Act), and an additional $500,000 shall be |
8 | | reserved for investments made in qualified new business |
9 | | ventures with their principal place of business in counties |
10 | | with a population of not more than 250,000. For taxable years |
11 | | beginning on or after January 1, 2024, the aggregate amount of |
12 | | the tax credits that may be claimed under this Section for |
13 | | investments made in qualified new business ventures shall be |
14 | | limited to $15,000,000 per calendar year, of which $2,500,000 |
15 | | shall be reserved for investments made in qualified new |
16 | | business ventures that are minority-owned businesses (as the |
17 | | term is defined in the Business Enterprise for Minorities, |
18 | | Women, and Persons with Disabilities Act), $1,250,000 shall be |
19 | | reserved for investments made in qualified new business |
20 | | ventures that are women-owned businesses or businesses owned |
21 | | by a person with a disability (as those terms are defined in |
22 | | the Business Enterprise for Minorities, Women, and Persons |
23 | | with Disabilities Act), and $1,250,000 shall be reserved for |
24 | | investments made in qualified new business ventures with their |
25 | | principal place of business in a county with a population of |
26 | | not more than 250,000. The foregoing annual allowable amounts |
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1 | | set forth in this Section shall be allocated by the |
2 | | Department, on a per calendar quarter basis and prior to the |
3 | | commencement of each calendar year, in such proportion as |
4 | | determined by the Department, provided that: (i) the amount |
5 | | initially allocated by the Department for any one calendar |
6 | | quarter shall not exceed 35% of the total allowable amount; |
7 | | (ii) any portion of the allocated allowable amount remaining |
8 | | unused as of the end of any of the first 3 calendar quarters of |
9 | | a given calendar year shall be rolled into, and added to, the |
10 | | total allocated amount for the next available calendar |
11 | | quarter; and (iii) the reservation of tax credits for |
12 | | investments in minority-owned businesses, women-owned |
13 | | businesses, businesses owned by a person with a disability, |
14 | | and in businesses in counties with a population of not more |
15 | | than 250,000 is limited to the first 3 calendar quarters of a |
16 | | given calendar year, after which they may be claimed by |
17 | | investors in any qualified new business venture. |
18 | | (g) A claimant may not sell or otherwise transfer a credit |
19 | | awarded under this Section to another person. |
20 | | (h) On or before March 1 of each year, the Department shall |
21 | | report to the Governor and to the General Assembly on the tax |
22 | | credit certificates awarded under this Section for the prior |
23 | | calendar year. |
24 | | (1) This report must include, for each tax credit |
25 | | certificate awarded: |
26 | | (A) the name of the claimant and the amount of |
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1 | | credit awarded or allocated to that claimant; |
2 | | (B) the name and address (including the county) of |
3 | | the qualified new business venture that received the |
4 | | investment giving rise to the credit, the North |
5 | | American Industry Classification System (NAICS) code |
6 | | applicable to that qualified new business venture, and |
7 | | the number of employees of the qualified new business |
8 | | venture; and |
9 | | (C) the date of approval by the Department of each |
10 | | claimant's tax credit certificate. |
11 | | (2) The report must also include: |
12 | | (A) the total number of applicants and the total |
13 | | number of claimants, including the amount of each tax |
14 | | credit certificate awarded to a claimant under this |
15 | | Section in the prior calendar year; |
16 | | (B) the total number of applications from |
17 | | businesses seeking registration under this Section, |
18 | | the total number of new qualified business ventures |
19 | | registered by the Department, and the aggregate amount |
20 | | of investment upon which tax credit certificates were |
21 | | issued in the prior calendar year; and |
22 | | (C) the total amount of tax credit certificates |
23 | | sought by applicants, the amount of each tax credit |
24 | | certificate issued to a claimant, the aggregate amount |
25 | | of all tax credit certificates issued in the prior |
26 | | calendar year and the aggregate amount of tax credit |
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1 | | certificates issued as authorized under this Section |
2 | | for all calendar years.
|
3 | | (i) For each business seeking registration under this |
4 | | Section after December 31, 2016, the Department shall require |
5 | | the business to include in its application the North American |
6 | | Industry Classification System (NAICS) code applicable to the |
7 | | business and the number of employees of the business at the |
8 | | time of application. Each business registered by the |
9 | | Department as a qualified new business venture that receives |
10 | | an investment giving rise to the issuance of a tax credit |
11 | | certificate pursuant to this Section shall, for each of the 3 |
12 | | years following the issue date of the last tax credit |
13 | | certificate issued by the Department with respect to such |
14 | | business pursuant to this Section, report to the Department |
15 | | the following: |
16 | | (1) the number of employees and the location at which |
17 | | those employees are employed, both as of the end of each |
18 | | year; |
19 | | (2) the amount of additional new capital investment |
20 | | raised as of the end of each year, if any; and |
21 | | (3) the terms of any liquidity event occurring during |
22 | | such year; for the purposes of this Section, a "liquidity |
23 | | event" means any event that would be considered an exit |
24 | | for an illiquid investment, including any event that |
25 | | allows the equity holders of the business (or any material |
26 | | portion thereof) to cash out some or all of their |
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1 | | respective equity interests. |
2 | | (Source: P.A. 101-81, eff. 7-12-19; 102-16, eff. 6-17-21.) |
3 | | ARTICLE 60. NEW MARKETS DEVELOPMENT PROGRAM |
4 | | Section 60-5. The New Markets Development Program Act is |
5 | | amended by changing Sections 5, 20, 25, 45, and 50 as follows: |
6 | | (20 ILCS 663/5)
|
7 | | Sec. 5. Definitions. As used in this Act:
|
8 | | "Applicable percentage" means 0% for each of the first 2 |
9 | | credit allowance dates, 7% for the third credit allowance |
10 | | date, and 8% for the next 4 credit allowance dates. |
11 | | "Credit allowance date" means with respect to any |
12 | | qualified equity investment:
|
13 | | (1) the date on which the investment is initially |
14 | | made; and |
15 | | (2) each of the 6 anniversary dates of that date |
16 | | thereafter. |
17 | | "Department" means the Department of Commerce and Economic |
18 | | Opportunity. |
19 | | "Long-term debt security" means any debt instrument issued |
20 | | by a qualified community development entity, at par value or a |
21 | | premium, with an original maturity date of at least 7 years |
22 | | from the date of its issuance, with no acceleration of |
23 | | repayment, amortization, or prepayment features prior to its |
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1 | | original maturity date. Cumulative cash payments of interest |
2 | | on the qualified debt instrument during the period commencing |
3 | | with the issuance of the qualified debt instrument and ending |
4 | | with the seventh anniversary of its issuance shall not exceed |
5 | | the sum of such cash interest payments and the cumulative net |
6 | | income of the issuing community development entity for the |
7 | | same period. This definition in no way limits the holder's |
8 | | ability to accelerate payments on the debt instrument in |
9 | | situations where the issuer has defaulted on covenants |
10 | | designed to ensure compliance with this Act or Section 45D of |
11 | | the Internal Revenue Code of 1986, as amended. |
12 | | "Purchase price" means the amount paid to the issuer of a |
13 | | qualified equity investment for that qualified equity |
14 | | investment. |
15 | | "Qualified active low-income community business" has the |
16 | | meaning given to that term in Section 45D of the Internal |
17 | | Revenue Code of 1986, as amended; except that any business |
18 | | that derives or projects to derive 15% or more of its annual |
19 | | revenue from the rental or sale of real estate is not |
20 | | considered to be a qualified active low-income community |
21 | | business. This exception does not apply to a business that is |
22 | | controlled by or under common control with another business if |
23 | | the second business (i) does not derive or project to derive |
24 | | 15% or more of its annual revenue from the rental or sale of |
25 | | real estate and (ii) is the primary tenant of the real estate |
26 | | leased from the initial business. A business shall be |
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1 | | considered a qualified active low-income community business |
2 | | for the duration of the qualified community development |
3 | | entity's investment in or loan to the business if the entity |
4 | | reasonably expects, at the time it makes the investment or |
5 | | loan, that the business will continue to satisfy the |
6 | | requirements for being a qualified active low-income community |
7 | | business throughout the entire period of the investment or |
8 | | loan. |
9 | | "Qualified community development entity" has the meaning |
10 | | given to that term in Section 45D of the Internal Revenue Code |
11 | | of 1986, as amended; provided that such entity has entered |
12 | | into, or is controlled by an entity that has entered into, an |
13 | | allocation agreement with the Community Development Financial |
14 | | Institutions Fund of the U.S. Treasury Department with respect |
15 | | to credits authorized by Section 45D of the Internal Revenue |
16 | | Code of 1986, as amended, that includes the State of Illinois |
17 | | within the service area set forth in that allocation |
18 | | agreement. |
19 | | "Qualified equity investment" means any equity investment |
20 | | in, or long-term debt security issued by, a qualified |
21 | | community development entity that:
|
22 | | (1) is acquired after the effective date of this Act |
23 | | at its original issuance solely in exchange for cash; |
24 | | (2) with respect to qualified equity investments made |
25 | | before January 1, 2024 2017 , has at least 85% of its cash |
26 | | purchase price used by the issuer to make qualified |
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1 | | low-income community investments in the State of Illinois, |
2 | | and, with respect to qualified equity investments made on |
3 | | or after January 1, 2024 2017 , has 100% of the cash |
4 | | purchase price used by the issuer to make qualified |
5 | | low-income community investments in the State of Illinois; |
6 | | and |
7 | | (3) is designated by the issuer as a qualified equity |
8 | | investment under this
Act; with respect to qualified |
9 | | equity investments made on or after January 1, 2024 2017 , |
10 | | is designated by the issuer as a qualified equity |
11 | | investment under Section 45D of the Internal Revenue Code |
12 | | of 1986, as amended; and is certified by the Department as |
13 | | not exceeding the limitation contained in Section 20. |
14 | | This term includes any qualified equity investment that |
15 | | does not meet the provisions of item (1) of this definition if |
16 | | the investment was a qualified equity investment in the hands |
17 | | of a prior holder. |
18 | | "Qualified low-income community investment" means any |
19 | | capital or equity investment in, or loan to, any qualified |
20 | | active low-income community business. With respect to any one |
21 | | qualified active low-income community business, the maximum |
22 | | amount of qualified low-income community investments made in |
23 | | that business, on a collective basis with all of its |
24 | | affiliates that may be counted towards the satisfaction of |
25 | | paragraph (2) of the definition of qualified equity |
26 | | investment, shall be $10,000,000 whether issued to one or |
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1 | | several qualified community development entities. |
2 | | "Tax credit" means a credit against any income, franchise, |
3 | | or insurance premium taxes, including insurance retaliatory |
4 | | taxes, otherwise due under Illinois law.
|
5 | | "Taxpayer" means any individual or entity subject to any |
6 | | income, franchise, or insurance premium tax under Illinois |
7 | | law.
|
8 | | (Source: P.A. 100-408, eff. 8-25-17.) |
9 | | (20 ILCS 663/20)
|
10 | | Sec. 20. Annual cap on credits. The Department shall limit |
11 | | the monetary amount of qualified equity investments permitted |
12 | | under this Act to a level necessary to limit tax credit use at |
13 | | no more than (i) $20,000,000 in of tax credits for fiscal years |
14 | | beginning before July 1, 2023 and (ii) $25,000,000 in tax |
15 | | credits for fiscal years beginning on or after July 1, 2023 in |
16 | | any fiscal year . This limitation on qualified equity |
17 | | investments shall be based on the anticipated use of credits |
18 | | without regard to the potential for taxpayers to carry forward |
19 | | tax credits to later tax years.
|
20 | | (Source: P.A. 100-408, eff. 8-25-17.) |
21 | | (20 ILCS 663/25)
|
22 | | Sec. 25. Certification of qualified equity investments. |
23 | | (a) A qualified community development entity that seeks to |
24 | | have an equity investment or long-term debt security |
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1 | | designated as a qualified equity investment and eligible for |
2 | | tax credits under this Section shall apply to the Department. |
3 | | The qualified community development entity must submit an |
4 | | application on a form that the Department provides that |
5 | | includes: |
6 | | (1) The name, address, tax identification number of |
7 | | the entity, and evidence of the entity's certification as |
8 | | a qualified community development entity. |
9 | | (2) A copy of the allocation agreement executed by the |
10 | | entity, or its controlling entity, and the Community |
11 | | Development Financial Institutions Fund. |
12 | | (3) A certificate executed by an executive officer of |
13 | | the entity attesting that the allocation agreement remains |
14 | | in effect and has not been revoked or cancelled by the |
15 | | Community Development Financial Institutions Fund. |
16 | | (4) A description of the proposed amount, structure, |
17 | | and purchaser of the equity investment or long-term debt |
18 | | security. |
19 | | (5) The name and tax identification number of any |
20 | | taxpayer eligible to utilize tax credits earned as a |
21 | | result of the issuance of the qualified equity investment. |
22 | | (6) Information regarding the proposed use of proceeds |
23 | | from the issuance of the qualified equity investment. |
24 | | (7) A nonrefundable application fee of $5,000. This |
25 | | fee shall be paid to the Department and shall be required |
26 | | of each application submitted. |
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1 | | (8) With respect to qualified equity investments made |
2 | | on or after January 1, 2017, the amount of qualified |
3 | | equity investment authority the applicant agrees to |
4 | | designate as a federal qualified equity investment under |
5 | | Section 45D of the Internal Revenue Code, including a copy |
6 | | of the screen shot from the Community Development |
7 | | Financial Institutions Fund's Allocation Tracking System |
8 | | of the applicant's remaining federal qualified equity |
9 | | investment authority. |
10 | | (b) Within 30 days after receipt of a completed |
11 | | application containing the information necessary for the |
12 | | Department to certify a potential qualified equity investment, |
13 | | including the payment of the application fee, the Department |
14 | | shall grant or deny the application in full or in part. If the |
15 | | Department denies any part of the application, it shall inform |
16 | | the qualified community development entity of the grounds for |
17 | | the denial. If the qualified community development entity |
18 | | provides any additional information required by the Department |
19 | | or otherwise completes its application within 15 days of the |
20 | | notice of denial, the application shall be considered |
21 | | completed as of the original date of submission. If the |
22 | | qualified community development entity fails to provide the |
23 | | information or complete its application within the 15-day |
24 | | period, the application remains denied and must be resubmitted |
25 | | in full with a new submission date. |
26 | | (c) If the application is deemed complete, the Department |
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1 | | shall certify the proposed equity investment or long-term debt |
2 | | security as a qualified equity investment that is eligible for |
3 | | tax credits under this Section, subject to the limitations |
4 | | contained in Section 20. The Department shall provide written |
5 | | notice of the certification to the qualified community |
6 | | development entity. The notice shall include the names of |
7 | | those taxpayers who are eligible to utilize the credits and |
8 | | their respective credit amounts. If the names of the taxpayers |
9 | | who are eligible to utilize the credits change due to a |
10 | | transfer of a qualified equity investment or a change in an |
11 | | allocation pursuant to Section 15, the qualified community |
12 | | development entity shall notify the Department of such change. |
13 | | (d) With respect to applications received before January |
14 | | 1, 2017, the Department shall certify qualified equity |
15 | | investments in the order applications are received by the |
16 | | Department. Applications received on the same day shall be |
17 | | deemed to have been received simultaneously. For applications |
18 | | received on the same day and deemed complete, the Department |
19 | | shall certify, consistent with remaining tax credit capacity, |
20 | | qualified equity investments in proportionate percentages |
21 | | based upon the ratio of the amount of qualified equity |
22 | | investment requested in an application to the total amount of |
23 | | qualified equity investments requested in all applications |
24 | | received on the same day. |
25 | | (d-5) With respect to applications received on or after |
26 | | January 1, 2017, the Department shall certify applications by |
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1 | | applicants that agree to designate qualified equity |
2 | | investments as federal qualified equity investments in |
3 | | accordance with item (8) of subsection (a) of this Section in |
4 | | proportionate percentages based upon the ratio of the amount |
5 | | of qualified equity investments requested in an application to |
6 | | be designated as federal qualified equity investments to the |
7 | | total amount of qualified equity investments to be designated |
8 | | as federal qualified equity investments requested in all |
9 | | applications received on the same day. |
10 | | (d-10) With respect to applications received on or after |
11 | | January 1, 2017, after complying with subsection (d-5), the |
12 | | Department shall certify the qualified equity investments of |
13 | | all other applicants, including the remaining qualified equity |
14 | | investment authority requested by applicants not designated as |
15 | | federal qualified equity investments in accordance with item |
16 | | (8) of subsection (a) of this Section, in proportionate |
17 | | percentages based upon the ratio of the amount of qualified |
18 | | equity investments requested in the applications to the total |
19 | | amount of qualified equity investments requested in all |
20 | | applications received on the same day. |
21 | | (e) Once the Department has certified qualified equity |
22 | | investments that, on a cumulative basis, are eligible for |
23 | | $20,000,000 in tax credits (for taxable years beginning before |
24 | | July 1, 2023) or $25,000,000 in tax credits (for taxable years |
25 | | beginning on or after July 1, 2023) , the Department may not |
26 | | certify any more qualified equity investments. If a pending |
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1 | | request cannot be fully certified, the Department shall |
2 | | certify the portion that may be certified unless the qualified |
3 | | community development entity elects to withdraw its request |
4 | | rather than receive partial credit. |
5 | | (f) Within 30 days after receiving notice of |
6 | | certification, the qualified community development entity |
7 | | shall (i) issue the qualified equity investment and receive |
8 | | cash in the amount of the certified amount and (ii) with |
9 | | respect to qualified equity investments made on or after |
10 | | January 1, 2017, if applicable, designate the required amount |
11 | | of qualified equity investment authority as a federal |
12 | | qualified equity investment. The qualified community |
13 | | development entity must provide the Department with evidence |
14 | | of the receipt of the cash investment within 10 business days |
15 | | after receipt and, with respect to qualified equity |
16 | | investments made on or after January 1, 2017, if applicable, |
17 | | provide evidence that the required amount of qualified equity |
18 | | investment authority was designated as a federal qualified |
19 | | equity investment. If the qualified community development |
20 | | entity does not receive the cash investment and issue the |
21 | | qualified equity investment within 30 days following receipt |
22 | | of the certification notice, the certification shall lapse and |
23 | | the entity may not issue the qualified equity investment |
24 | | without reapplying to the Department for certification. A |
25 | | certification that lapses reverts back to the Department and |
26 | | may be reissued only in accordance with the application |
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1 | | process outline in this Section 25.
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2 | | (g) Allocation rounds enabled by this Act shall be applied |
3 | | for according to the following schedule: |
4 | | (1) on January 2, 2019, $125,000,000 of qualified |
5 | | equity investments; and |
6 | | (2) not less than 45 days after but not more than 90 |
7 | | days after the Community Development Financial |
8 | | Institutions Fund of the United States Department of the |
9 | | Treasury announces allocation awards under a Notice of |
10 | | Funding Availability that is published in the Federal |
11 | | Register after September 6, 2019, $125,000,000 of |
12 | | qualified equity investments ; and . |
13 | | (3) on or after January 1, 2024, but not more than 120 |
14 | | days after the Community Development Financial |
15 | | Institutions Fund of the United States Department of the |
16 | | Treasury announces allocation awards under a Notice of |
17 | | Funding Availability that was published in the Federal |
18 | | Register on November 22, 2022, $312,500,000 of qualified |
19 | | equity investments. |
20 | | (Source: P.A. 100-408, eff. 8-25-17; 101-604, eff. 12-13-19.) |
21 | | (20 ILCS 663/45)
|
22 | | Sec. 45. Examination and Rulemaking. |
23 | | (a) The Department may conduct examinations to verify that |
24 | | the tax credits under this Act have been received and applied |
25 | | according to the requirements of this Act and to verify that no |
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1 | | event has occurred that would result in a recapture of tax |
2 | | credits under Section 40. |
3 | | (b) Neither the Department nor the Department of Revenue |
4 | | shall have the authority to promulgate rules under the Act, |
5 | | but , with respect to qualified equity investments issued |
6 | | before January 1, 2024, the Department and the Department of |
7 | | Revenue shall have the authority to issue advisory letters to |
8 | | individual qualified community development entities and their |
9 | | investors that are limited to the specific facts outlined in |
10 | | an advisory letter request from a qualified community |
11 | | development entity. Such rulings cannot be relied upon by any |
12 | | person or entity other than the qualified community |
13 | | development entity that requested the letter and the taxpayers |
14 | | that are entitled to any tax credits generated from |
15 | | investments in such entity. For purposes of this subsection, |
16 | | "rules" is given the meaning contained in Section 1-70 of the |
17 | | Illinois Administrative Procedure Act. |
18 | | (c) In rendering advisory letters and making other |
19 | | determinations under this Act prior to January 1, 2024 , to the |
20 | | extent applicable, the Department and the Department of |
21 | | Revenue shall look for guidance to Section 45D of the Internal |
22 | | Revenue Code of 1986, as amended, and the rules and |
23 | | regulations issued thereunder.
|
24 | | (d) It is the intent of the General Assembly that |
25 | | qualified equity investment structures allowed pursuant to |
26 | | advisory letters and other determinations by the Department |
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1 | | and the Department of Revenue prior to January 1, 2024 shall be |
2 | | allowed and that qualified community development entities may |
3 | | rely on the rules and regulations issued under Section 45D of |
4 | | the Internal Revenue Code of 1986, as amended, where |
5 | | applicable. |
6 | | (Source: P.A. 95-1024, eff. 12-31-08.) |
7 | | (20 ILCS 663/50)
|
8 | | Sec. 50. Sunset. For fiscal years following fiscal year |
9 | | 2031 2024 , qualified equity investments shall not be made |
10 | | under this Act unless reauthorization is made pursuant to this |
11 | | Section. For all fiscal years following fiscal year 2031 2024 , |
12 | | unless the General Assembly adopts a joint resolution granting |
13 | | authority to the Department to approve qualified equity |
14 | | investments for the Illinois new markets development program |
15 | | and clearly describing the amount of tax credits available for |
16 | | the next fiscal year, or otherwise complies with the |
17 | | provisions of this Section, no qualified equity investments |
18 | | may be permitted to be made under this Act. The amount of |
19 | | available tax credits contained in such a resolution shall not |
20 | | exceed the limitation provided under Section 20. Nothing in |
21 | | this Section precludes a taxpayer who makes a qualified equity |
22 | | investment prior to the expiration of authority to make |
23 | | qualified equity investments from claiming tax credits |
24 | | relating to that qualified equity investment for each |
25 | | applicable credit allowance date.
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1 | | (Source: P.A. 102-16, eff. 6-17-21.) |
2 | | ARTICLE 65. STANDARD EXEMPTION |
3 | | Section 65-5. The Illinois Income Tax Act is amended by |
4 | | changing Section 204 as follows:
|
5 | | (35 ILCS 5/204) (from Ch. 120, par. 2-204)
|
6 | | Sec. 204. Standard exemption.
|
7 | | (a) Allowance of exemption. In computing net income under |
8 | | this Act, there
shall be allowed as an exemption the sum of the |
9 | | amounts determined under
subsections (b), (c) and (d), |
10 | | multiplied by a fraction the numerator of which
is the amount |
11 | | of the taxpayer's base income allocable to this State for the
|
12 | | taxable year and the denominator of which is the taxpayer's |
13 | | total base income
for the taxable year.
|
14 | | (b) Basic amount. For the purpose of subsection (a) of |
15 | | this Section,
except as provided by subsection (a) of Section |
16 | | 205 and in this
subsection, each taxpayer shall be allowed a |
17 | | basic amount of $1000, except
that for corporations the basic |
18 | | amount shall be zero for tax years ending on
or
after December |
19 | | 31, 2003, and for individuals the basic amount shall be:
|
20 | | (1) for taxable years ending on or after December 31, |
21 | | 1998 and prior to
December 31, 1999, $1,300;
|
22 | | (2) for taxable years ending on or after December 31, |
23 | | 1999 and prior to
December 31, 2000, $1,650;
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1 | | (3) for taxable years ending on or after December 31, |
2 | | 2000 and prior to December 31, 2012, $2,000;
|
3 | | (4) for taxable years ending on or after December 31, |
4 | | 2012 and prior to December 31, 2013, $2,050; |
5 | | (5) for taxable years ending on or after December 31, |
6 | | 2013 and on or before December 31, 2022 December 31, 2023 , |
7 | | $2,050 plus the cost-of-living adjustment under subsection |
8 | | (d-5) ; . |
9 | | (6) for taxable years ending on or after December 31, |
10 | | 2023 and prior to December 31, 2024, $2,425; |
11 | | (7) for taxable years ending on or after December 31, |
12 | | 2024 and on or before December 31, 2028, $2,050 plus the |
13 | | cost-of-living adjustment under subsection (d-5). |
14 | | For taxable years ending on or after December 31, 1992, a |
15 | | taxpayer whose
Illinois base income exceeds the basic amount |
16 | | and who is claimed as a dependent
on another person's tax |
17 | | return under the Internal Revenue Code shall
not be allowed |
18 | | any basic amount under this subsection.
|
19 | | (c) Additional amount for individuals. In the case of an |
20 | | individual
taxpayer, there shall be allowed for the purpose of |
21 | | subsection (a), in
addition to the basic amount provided by |
22 | | subsection (b), an additional
exemption equal to the basic |
23 | | amount for each
exemption in excess of one
allowable to such |
24 | | individual taxpayer for the taxable year under Section
151 of |
25 | | the Internal Revenue Code.
|
26 | | (d) Additional exemptions for an individual taxpayer and |
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1 | | his or her
spouse. In the case of an individual taxpayer and |
2 | | his or her spouse, he or
she shall each be allowed additional |
3 | | exemptions as follows:
|
4 | | (1) Additional exemption for taxpayer or spouse 65 |
5 | | years of age or older.
|
6 | | (A) For taxpayer. An additional exemption of |
7 | | $1,000 for the taxpayer if
he or she has attained the |
8 | | age of 65 before the end of the taxable year.
|
9 | | (B) For spouse when a joint return is not filed. An |
10 | | additional
exemption of $1,000 for the spouse of the |
11 | | taxpayer if a joint return is not
made by the taxpayer |
12 | | and his spouse, and if the spouse has attained the age
|
13 | | of 65 before the end of such taxable year, and, for the |
14 | | calendar year in
which the taxable year of the |
15 | | taxpayer begins, has no gross income and is
not the |
16 | | dependent of another taxpayer.
|
17 | | (2) Additional exemption for blindness of taxpayer or |
18 | | spouse.
|
19 | | (A) For taxpayer. An additional exemption of |
20 | | $1,000 for the taxpayer if
he or she is blind at the |
21 | | end of the taxable year.
|
22 | | (B) For spouse when a joint return is not filed. An |
23 | | additional
exemption of $1,000 for the spouse of the |
24 | | taxpayer if a separate return is made
by the taxpayer, |
25 | | and if the spouse is blind and, for the calendar year |
26 | | in which
the taxable year of the taxpayer begins, has |
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1 | | no gross income and is not the
dependent of another |
2 | | taxpayer. For purposes of this paragraph, the
|
3 | | determination of whether the spouse is blind shall be |
4 | | made as of the end of the
taxable year of the taxpayer; |
5 | | except that if the spouse dies during such
taxable |
6 | | year such determination shall be made as of the time of |
7 | | such death.
|
8 | | (C) Blindness defined. For purposes of this |
9 | | subsection, an individual
is blind only if his or her |
10 | | central visual acuity does not exceed 20/200 in
the |
11 | | better eye with correcting lenses, or if his or her |
12 | | visual acuity is
greater than 20/200 but is |
13 | | accompanied by a limitation in the fields of
vision |
14 | | such that the widest diameter of the visual fields |
15 | | subtends an angle
no greater than 20 degrees.
|
16 | | (d-5) Cost-of-living adjustment. For purposes of item (5) |
17 | | of subsection (b), the cost-of-living adjustment for any |
18 | | calendar year and for taxable years ending prior to the end of |
19 | | the subsequent calendar year is equal to $2,050 times the |
20 | | percentage (if any) by which: |
21 | | (1) the Consumer Price Index for the preceding |
22 | | calendar year, exceeds |
23 | | (2) the Consumer Price Index for the calendar year |
24 | | 2011. |
25 | | The Consumer Price Index for any calendar year is the |
26 | | average of the Consumer Price Index as of the close of the |
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1 | | 12-month period ending on August 31 of that calendar year. |
2 | | The term "Consumer Price Index" means the last Consumer |
3 | | Price Index for All Urban Consumers published by the United |
4 | | States Department of Labor or any successor agency. |
5 | | If any cost-of-living adjustment is not a multiple of $25, |
6 | | that adjustment shall be rounded to the next lowest multiple |
7 | | of $25. |
8 | | (e) Cross reference. See Article 3 for the manner of |
9 | | determining
base income allocable to this State.
|
10 | | (f) Application of Section 250. Section 250 does not apply |
11 | | to the
amendments to this Section made by Public Act 90-613.
|
12 | | (g) Notwithstanding any other provision of law, for |
13 | | taxable years beginning on or after January 1, 2017, no |
14 | | taxpayer may claim an exemption under this Section if the |
15 | | taxpayer's adjusted gross income for the taxable year exceeds |
16 | | (i) $500,000, in the case of spouses filing a joint federal tax |
17 | | return or (ii) $250,000, in the case of all other taxpayers. |
18 | | (Source: P.A. 100-22, eff. 7-6-17; 100-865, eff. 8-14-18.)
|
19 | | ARTICLE 70. AVIATION FUEL |
20 | | Section 70-5. The Use Tax Act is amended by changing |
21 | | Section 3-87 as follows: |
22 | | (35 ILCS 105/3-87) |
23 | | Sec. 3-87. Sustainable Aviation Fuel Purchase Credit. |
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1 | | (a) From July 1, 2023 through December 31, 2032 June 1, |
2 | | 2023 through January 1, 2033 , sustainable aviation fuel sold |
3 | | to or used by an air common carrier, certified by the carrier |
4 | | to the Department to be used in Illinois, earns a credit in the |
5 | | amount of $1.50 per gallon of sustainable aviation fuel |
6 | | purchased. The credit earned shall be referred to as the |
7 | | Sustainable Aviation Fuel Purchase Credit. |
8 | | Only that portion of each gallon of aviation fuel that |
9 | | consists of sustainable aviation fuel, as defined in this |
10 | | Section, is eligible to earn the credit. |
11 | | The credit is earned at the time sustainable aviation fuel |
12 | | is purchased for use in Illinois. The amount of credit that is |
13 | | earned is based on the number of whole gallons of sustainable |
14 | | aviation fuel purchased for use in Illinois. Partial gallons |
15 | | will not earn a credit. Credits may be used at the same time as |
16 | | they are earned. |
17 | | For a sale or use of aviation fuel to qualify to earn the |
18 | | Sustainable Aviation Fuel Purchase Credit, taxpayers must |
19 | | retain in their books and records a certification from the |
20 | | producer of the aviation fuel that the aviation fuel sold or |
21 | | used and for which a sustainable aviation fuel purchase credit |
22 | | was earned meets the definition of sustainable aviation fuel |
23 | | under this Section. The documentation must include detail |
24 | | sufficient for the Department to determine the number of |
25 | | gallons of sustainable aviation fuel sold or used. |
26 | | A Sustainable Aviation Fuel Purchase Credit earned by an |
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1 | | air common carrier expires on December 31, 2032. The |
2 | | Sustainable Aviation Fuel Purchase Credit is non-transferable |
3 | | and non-refundable. Taxpayers shall account for the earning |
4 | | and usage of Sustainable Aviation Fuel Purchase Credits on |
5 | | each monthly return filed with the Department, as deemed |
6 | | necessary by the Department. |
7 | | The purchaser of sustainable aviation fuel shall certify |
8 | | to the seller of the aviation fuel that the purchaser is |
9 | | satisfying all or part of its liability for the 6.25% tax under |
10 | | the Use Tax Act or the Service Use Tax Act that is due on the |
11 | | purchase of aviation fuel by use of the sustainable aviation |
12 | | fuel purchase credit. |
13 | | The Sustainable Aviation Fuel Purchase Credit |
14 | | certification must be dated and shall include the name and |
15 | | address of the purchaser, the purchaser's registration number, |
16 | | if registered, the credit being applied, and a statement that |
17 | | the State Use Tax or Service Use Tax use tax or service use tax |
18 | | liability is being satisfied with the air common carrier's |
19 | | accumulated sustainable aviation fuel purchase credit. |
20 | | An air common carrier-purchaser of aviation fuel may |
21 | | utilize the Sustainable Aviation Fuel Purchase Credit in |
22 | | satisfaction of the 6.25% tax arising from the purchase of |
23 | | aviation fuel, but not in satisfaction of penalty or interest. |
24 | | Until January 1, 2033 July 1, 2033 , on an annual basis, |
25 | | running from January through December each year, no credit may |
26 | | be earned by an air common carrier for soybean oil-derived |
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1 | | sustainable aviation fuel once air common carriers in this |
2 | | State have collectively purchased sustainable aviation fuel |
3 | | containing 10,000,000 gallons of soybean oil feedstock. If, in |
4 | | any year, air common carriers collectively purchase |
5 | | sustainable aviation fuel containing more than 10,000,000 |
6 | | gallons of soybean oil feedstock for use in this State, then, |
7 | | in the month in which taxpayer reporting shows that the credit |
8 | | earned from these purchases exceeds the cap, the Department |
9 | | shall first determine the remaining number of gallons of |
10 | | soybean oil feedstock available to earn the credit for that |
11 | | year by subtracting from 10,000,000 the number of gallons of |
12 | | soybean oil feedstock collectively purchased that year based |
13 | | on the prior month's taxpayer reporting. The Department shall |
14 | | then allocate the credit from these remaining gallons of |
15 | | soybean oil feedstock available to earn the credit for that |
16 | | year by allowing credit to each air common carrier in the same |
17 | | proportion as the number of gallons of soybean oil feedstock |
18 | | reported as having been purchased by each air common carrier |
19 | | during the month in which the cap is exceeded is to all of the |
20 | | gallons of soybean oil feedstock reported as having been |
21 | | purchased during that month. The earning of any credit in |
22 | | excess of this shall be disallowed for the remainder of the |
23 | | year. For any credit that was used, the earning of which was |
24 | | disallowed in the process described in this paragraph, any |
25 | | resulting tax shall be due on or before April 20th of the year |
26 | | following the year in which the 10,000,000 gallon cap on |
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1 | | soybean oil feedstock was exceeded and shall be reported and |
2 | | paid on the aviation fuel tax return. Any credit that is earned |
3 | | for the purchase of soybean oil feedstock but not timely |
4 | | reported in a year in which the cap is exceeded is disallowed. |
5 | | A Sustainable Aviation Fuel Purchase Credit certification |
6 | | provided by the air common carrier may be used to satisfy the |
7 | | retailer's or serviceman's 6.25% tax liability on aviation |
8 | | fuel under the Retailers' Occupation Tax Act or Service |
9 | | Occupation Tax Act for the credit claimed. |
10 | | (b) As used in this Section, "sustainable aviation fuel" |
11 | | means liquid fuel that meets the criteria set forth in |
12 | | subsections (d) and (e) of Section 40B of the federal Internal |
13 | | Revenue Code of 1986 or: |
14 | | (1) consists of synthesized hydrocarbons and meets the |
15 | | requirements of: |
16 | | (A) the American Society for Testing and Materials |
17 | | International Standard D7566; or |
18 | | (B) the Fischer-Tropsch provisions of American |
19 | | Society for Testing and Materials International |
20 | | Standard D1655, Annex A1; |
21 | | (2) prior to June 1, 2028, is derived from biomass |
22 | | resources, waste streams, renewable energy sources, or |
23 | | gaseous carbon oxides, and beginning on June 1, 2028 is |
24 | | derived from domestic biomass resources; |
25 | | (3) is not derived from any palm derivatives; and |
26 | | (4) the fuel production pathway for the sustainable |
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1 | | aviation fuel achieves at least a 50% lifecycle greenhouse |
2 | | gas emissions reduction in comparison with petroleum-based |
3 | | jet fuel, as determined by a test that shows: |
4 | | (A) that the fuel production pathway achieves at |
5 | | least a 50% reduction of the aggregate attributional |
6 | | core lifecycle emissions and the positive induced land |
7 | | use change values under the lifecycle methodology for |
8 | | sustainable aviation fuels adopted by the |
9 | | International Civil Aviation Organization with the |
10 | | agreement of the United States; or |
11 | | (B) that the fuel production pathway achieves at |
12 | | least a 50% reduction of the aggregate attributional |
13 | | core lifecycle greenhouse gas emissions values |
14 | | utilizing the most recent version of Argonne National |
15 | | Laboratory's GREET model, inclusive of agricultural |
16 | | practices and carbon capture and sequestration.
|
17 | | (Source: P.A. 102-1125, eff. 2-3-23.) |
18 | | Section 70-10. The Service Use Tax Act is amended by |
19 | | changing Section 3-72 as follows: |
20 | | (35 ILCS 110/3-72) |
21 | | Sec. 3-72. Sustainable Aviation Fuel Purchase Credit. |
22 | | (a) From July 1, 2023 through December 31, 2032 June 1, |
23 | | 2023 through January 1, 2033 , sustainable aviation fuel sold |
24 | | to or used by an air common carrier, certified by the carrier |
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1 | | to the Department to be used in Illinois, earns a credit in the |
2 | | amount of $1.50 per gallon of sustainable aviation fuel |
3 | | purchased. The credit earned shall be referred to as the |
4 | | Sustainable Aviation Fuel Purchase Credit. |
5 | | Only that portion of each gallon of aviation fuel that |
6 | | consists of sustainable aviation fuel, as defined in this |
7 | | Section, is eligible to earn the credit. |
8 | | The credit is earned at the time sustainable aviation fuel |
9 | | is purchased for use in Illinois. The amount of credit that is |
10 | | earned is based on the number of whole gallons of sustainable |
11 | | aviation fuel purchased for use in Illinois. Partial gallons |
12 | | will not earn a credit. Credits may be used at the same time as |
13 | | they are earned. |
14 | | For a sale or use of aviation fuel to qualify to earn the |
15 | | Sustainable Aviation Fuel Purchase Credit, taxpayers must |
16 | | retain in their books and records a certification from the |
17 | | producer of the aviation fuel that the aviation fuel sold or |
18 | | used and for which a sustainable aviation fuel purchase credit |
19 | | was earned meets the definition of sustainable aviation fuel |
20 | | under this Section. The documentation must include detail |
21 | | sufficient for the Department to determine the number of |
22 | | gallons of sustainable aviation fuel sold or used. |
23 | | A Sustainable Aviation Fuel Purchase Credit earned by an |
24 | | air common carrier expires on December 31, 2032. The |
25 | | Sustainable Aviation Fuel Purchase Credit is a |
26 | | non-transferable and non-refundable credit. Taxpayers shall |
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1 | | account for the earning and usage of Sustainable Aviation Fuel |
2 | | Purchase Credits on each monthly return filed with the |
3 | | Department, as deemed necessary by the Department. |
4 | | The purchaser of sustainable aviation fuel shall certify |
5 | | to the seller of the aviation fuel that the purchaser is |
6 | | satisfying all or part of its liability for the 6.25% tax under |
7 | | the Use Tax Act or the Service Use Tax Act that is due on the |
8 | | purchase of aviation fuel by use of the sustainable aviation |
9 | | fuel purchase credit. |
10 | | The Sustainable Aviation Fuel Purchase Credit |
11 | | certification must be dated and shall include the name and |
12 | | address of the purchaser, the purchaser's registration number, |
13 | | if registered, the credit being applied, and a statement that |
14 | | the State Use Tax or Service Use Tax use tax or service use tax |
15 | | liability is being satisfied with the air common carrier's |
16 | | accumulated sustainable aviation fuel purchase credit. |
17 | | An air common carrier-purchaser of aviation fuel may |
18 | | utilize the Sustainable Aviation Fuel Purchase Credit in |
19 | | satisfaction of the 6.25% tax arising from the purchase of |
20 | | aviation fuel, but not in satisfaction of penalty or interest. |
21 | | Until January 1, 2033 July 1, 2033 , on an annual basis |
22 | | running from January through December each year , no credit may |
23 | | be earned by an air common carrier for soybean oil-derived |
24 | | sustainable aviation fuel once air common carriers in this |
25 | | State have collectively purchased sustainable aviation fuel |
26 | | containing 10,000,000 gallons of soybean oil feedstock. If, in |
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1 | | any year, air common carriers collectively purchase |
2 | | sustainable aviation fuel containing more than 10,000,000 |
3 | | gallons of soybean oil feedstock for use in this State, then, |
4 | | in the month in which taxpayer reporting shows that the credit |
5 | | earned from these purchases exceeds the cap, the Department |
6 | | shall first determine the remaining number of gallons of |
7 | | soybean oil feedstock available to earn the credit for that |
8 | | year by subtracting from 10,000,000 the number of gallons of |
9 | | soybean oil feedstock collectively purchased that year based |
10 | | on the prior month's taxpayer reporting. The Department shall |
11 | | then allocate the credit from these remaining gallons of |
12 | | soybean oil feedstock available to earn the credit for that |
13 | | year by allowing credit to each air common carrier in the same |
14 | | proportion as the number of gallons of soybean oil feedstock |
15 | | reported as having been purchased by each air common carrier |
16 | | during the month in which the cap is exceeded is to all of the |
17 | | gallons of soybean oil feedstock reported as having been |
18 | | purchased during that month. The earning of any credit in |
19 | | excess of this shall be disallowed for the remainder of the |
20 | | year. For any credit that was used, the earning of which was |
21 | | disallowed in the process described in this paragraph, any |
22 | | resulting tax shall be due on or before April 20th of the year |
23 | | following the year in which the 10,000,000 gallon cap on |
24 | | soybean oil feedstock was exceeded and shall be reported and |
25 | | paid on the aviation fuel tax return. Any credit that is earned |
26 | | for the purchase of soybean oil feedstock but not timely |
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1 | | reported in a year in which the cap is exceeded is disallowed. |
2 | | A Sustainable Aviation Fuel Purchase Credit certification |
3 | | provided by the air common carrier may be used to satisfy the |
4 | | retailer's or serviceman's 6.25% tax liability on aviation |
5 | | fuel under the Retailers' Occupation Tax Act or Service |
6 | | Occupation Tax Act for the credit claimed. |
7 | | (b) As used in this Section, "sustainable aviation fuel" |
8 | | means liquid fuel that meets the criteria set forth in |
9 | | subsections (d) and (e) of Section 40B of the federal Internal |
10 | | Revenue Code of 1986 or: |
11 | | (1) consists of synthesized hydrocarbons and meets the |
12 | | requirements of: |
13 | | (A) the American Society for Testing and Materials |
14 | | International Standard D7566; or |
15 | | (B) the Fischer-Tropsch provisions of American |
16 | | Society for Testing and Materials International |
17 | | Standard D1655, Annex A1; |
18 | | (2) prior to June 1, 2028, is derived from biomass |
19 | | resources, waste streams, renewable energy sources, or |
20 | | gaseous carbon oxides, and beginning on June 1, 2028 is |
21 | | derived from domestic biomass resources; |
22 | | (3) is not derived from any palm derivatives; and |
23 | | (4) the fuel production pathway for the sustainable |
24 | | aviation fuel achieves at least a 50% lifecycle greenhouse |
25 | | gas emissions reduction in comparison with petroleum-based |
26 | | jet fuel, as determined by a test that shows: |
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1 | | (A) that the fuel production pathway achieves at |
2 | | least a 50% reduction of the aggregate attributional |
3 | | core lifecycle emissions and the positive induced land |
4 | | use change values under the lifecycle methodology for |
5 | | sustainable aviation fuels adopted by the |
6 | | International Civil Aviation Organization with the |
7 | | agreement of the United States; or |
8 | | (B) that the fuel production pathway achieves at |
9 | | least a 50% reduction of the aggregate attributional |
10 | | core lifecycle greenhouse gas emissions values |
11 | | utilizing the most recent version of Argonne National |
12 | | Laboratory's GREET model, inclusive of agricultural |
13 | | practices and carbon capture and sequestration.
|
14 | | (Source: P.A. 102-1125, eff. 2-3-23.) |
15 | | Section 70-15. The Service Occupation Tax Act is amended |
16 | | by changing Section 9 as follows:
|
17 | | (35 ILCS 115/9) (from Ch. 120, par. 439.109)
|
18 | | Sec. 9. Each serviceman required or authorized to collect |
19 | | the tax
herein imposed shall pay to the Department the amount |
20 | | of such tax at the
time when he is required to file his return |
21 | | for the period during which
such tax was collectible, less a |
22 | | discount of 2.1% prior to
January 1, 1990, and 1.75% on and |
23 | | after January 1, 1990, or
$5 per calendar year, whichever is |
24 | | greater, which is allowed to reimburse
the serviceman for |
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1 | | expenses incurred in collecting the tax, keeping
records, |
2 | | preparing and filing returns, remitting the tax and supplying |
3 | | data
to the Department on request. When determining the |
4 | | discount allowed under this Section, servicemen shall include |
5 | | the amount of tax that would have been due at the 1% rate but |
6 | | for the 0% rate imposed under this amendatory Act of the 102nd |
7 | | General Assembly. The discount under this Section is not |
8 | | allowed for the 1.25% portion of taxes paid on aviation fuel |
9 | | that is subject to the revenue use requirements of 49 U.S.C. |
10 | | 47107(b) and 49 U.S.C. 47133. The discount allowed under this |
11 | | Section is allowed only for returns that are filed in the |
12 | | manner required by this Act. The Department may disallow the |
13 | | discount for servicemen whose certificate of registration is |
14 | | revoked at the time the return is filed, but only if the |
15 | | Department's decision to revoke the certificate of |
16 | | registration has become final. |
17 | | Where such tangible personal property is sold under a |
18 | | conditional
sales contract, or under any other form of sale |
19 | | wherein the payment of
the principal sum, or a part thereof, is |
20 | | extended beyond the close of
the period for which the return is |
21 | | filed, the serviceman, in collecting
the tax may collect, for |
22 | | each tax return period, only the tax applicable
to the part of |
23 | | the selling price actually received during such tax return
|
24 | | period. |
25 | | Except as provided hereinafter in this Section, on or |
26 | | before the twentieth
day of each calendar month, such |
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1 | | serviceman shall file a
return for the preceding calendar |
2 | | month in accordance with reasonable
rules and regulations to |
3 | | be promulgated by the Department of Revenue.
Such return shall |
4 | | be filed on a form prescribed by the Department and
shall |
5 | | contain such information as the Department may reasonably |
6 | | require. The return shall include the gross receipts which |
7 | | were received during the preceding calendar month or quarter |
8 | | on the following items upon which tax would have been due but |
9 | | for the 0% rate imposed under this amendatory Act of the 102nd |
10 | | General Assembly: (i) food for human consumption that is to be |
11 | | consumed off the premises where it is sold (other than |
12 | | alcoholic beverages, food consisting of or infused with adult |
13 | | use cannabis, soft drinks, and food that has been prepared for |
14 | | immediate consumption); and (ii) food prepared for immediate |
15 | | consumption and transferred incident to a sale of service |
16 | | subject to this Act or the Service Use Tax Act by an entity |
17 | | licensed under the Hospital Licensing Act, the Nursing Home |
18 | | Care Act, the Assisted Living and Shared Housing Act, the |
19 | | ID/DD Community Care Act, the MC/DD Act, the Specialized |
20 | | Mental Health Rehabilitation Act of 2013, or the Child Care |
21 | | Act of 1969, or an entity that holds a permit issued pursuant |
22 | | to the Life Care Facilities Act. The return shall also include |
23 | | the amount of tax that would have been due on the items listed |
24 | | in the previous sentence but for the 0% rate imposed under this |
25 | | amendatory Act of the 102nd General Assembly. |
26 | | On and after January 1, 2018, with respect to servicemen |
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1 | | whose annual gross receipts average $20,000 or more, all |
2 | | returns required to be filed pursuant to this Act shall be |
3 | | filed electronically. Servicemen who demonstrate that they do |
4 | | not have access to the Internet or demonstrate hardship in |
5 | | filing electronically may petition the Department to waive the |
6 | | electronic filing requirement. |
7 | | The Department may require returns to be filed on a |
8 | | quarterly basis.
If so required, a return for each calendar |
9 | | quarter shall be filed on or
before the twentieth day of the |
10 | | calendar month following the end of such
calendar quarter. The |
11 | | taxpayer shall also file a return with the
Department for each |
12 | | of the first two months of each calendar quarter, on or
before |
13 | | the twentieth day of the following calendar month, stating: |
14 | | 1. The name of the seller; |
15 | | 2. The address of the principal place of business from |
16 | | which he engages
in business as a serviceman in this |
17 | | State; |
18 | | 3. The total amount of taxable receipts received by |
19 | | him during the
preceding calendar month, including |
20 | | receipts from charge and time sales,
but less all |
21 | | 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; |
25 | | 5-5. The signature of the taxpayer; and |
26 | | 6. Such other reasonable information as the Department |
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1 | | may
require. |
2 | | Each serviceman required or authorized to collect the tax |
3 | | herein imposed on aviation fuel acquired as an incident to the |
4 | | purchase of a service in this State during the preceding |
5 | | calendar month shall, instead of reporting and paying tax as |
6 | | otherwise required by this Section, report and pay such tax on |
7 | | a separate aviation fuel tax return. The requirements related |
8 | | to the return shall be as otherwise provided in this Section. |
9 | | Notwithstanding any other provisions of this Act to the |
10 | | contrary, servicemen transferring aviation fuel incident to |
11 | | sales of service shall file all aviation fuel tax returns and |
12 | | shall make all aviation fuel tax payments by electronic means |
13 | | in the manner and form required by the Department. For |
14 | | purposes of this Section, "aviation fuel" means jet fuel and |
15 | | aviation gasoline. |
16 | | If a taxpayer fails to sign a return within 30 days after |
17 | | the proper notice
and demand for signature by the Department, |
18 | | the return shall be considered
valid and any amount shown to be |
19 | | due on the return shall be deemed assessed. |
20 | | Notwithstanding any other provision of this Act to the |
21 | | contrary, servicemen subject to tax on cannabis shall file all |
22 | | cannabis tax returns and shall make all cannabis tax payments |
23 | | by electronic means in the manner and form required by the |
24 | | Department. |
25 | | Prior to October 1, 2003, and on and after September 1, |
26 | | 2004 a serviceman may accept a Manufacturer's
Purchase Credit |
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1 | | certification
from a purchaser in satisfaction
of Service Use |
2 | | Tax as provided in Section 3-70 of the
Service Use Tax Act if |
3 | | the purchaser provides
the
appropriate
documentation as |
4 | | required by Section 3-70 of the Service Use Tax Act.
A |
5 | | Manufacturer's Purchase Credit certification, accepted prior |
6 | | to October 1,
2003 or on or after September 1, 2004 by a |
7 | | serviceman as
provided in Section 3-70 of the Service Use Tax |
8 | | Act, may be used by that
serviceman to satisfy Service |
9 | | Occupation Tax liability in the amount claimed in
the |
10 | | certification, not to exceed 6.25% of the receipts subject to |
11 | | tax from a
qualifying purchase. A Manufacturer's Purchase |
12 | | Credit reported on any
original or amended return
filed under
|
13 | | this Act after October 20, 2003 for reporting periods prior to |
14 | | September 1, 2004 shall be disallowed. Manufacturer's Purchase |
15 | | Credit reported on annual returns due on or after January 1, |
16 | | 2005 will be disallowed for periods prior to September 1, |
17 | | 2004.
No Manufacturer's
Purchase Credit may be used after |
18 | | September 30, 2003 through August 31, 2004 to
satisfy any
tax |
19 | | liability imposed under this Act, including any audit |
20 | | liability. |
21 | | Beginning on July 1, 2023 and through December 31, 2032, a |
22 | | serviceman may accept a Sustainable Aviation Fuel Purchase |
23 | | Credit certification from an air common carrier-purchaser in |
24 | | satisfaction of Service Use Tax as provided in Section 3-72 of |
25 | | the Service Use Tax Act if the purchaser provides the |
26 | | appropriate documentation as required by Section 3-72 of the |
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1 | | Service Use Tax Act. A Sustainable Aviation Fuel Purchase |
2 | | Credit certification accepted by a serviceman in accordance |
3 | | with this paragraph may be used by that serviceman to satisfy |
4 | | service occupation tax liability (but not in satisfaction of |
5 | | penalty or interest) in the amount claimed in the |
6 | | certification, not to exceed 6.25% of the receipts subject to |
7 | | tax from a sale of aviation fuel. In addition, for a sale of |
8 | | aviation fuel to qualify to earn the Sustainable Aviation Fuel |
9 | | Purchase Credit, servicemen must retain in their books and |
10 | | records a certification from the producer of the aviation fuel |
11 | | that the aviation fuel sold by the serviceman and for which a |
12 | | sustainable aviation fuel purchase credit was earned meets the |
13 | | definition of sustainable aviation fuel under Section 3-72 of |
14 | | the Service Use Tax Act. The documentation must include detail |
15 | | sufficient for the Department to determine the number of |
16 | | gallons of sustainable aviation fuel sold. |
17 | | If the serviceman's average monthly tax liability to
the |
18 | | Department does not exceed $200, the Department may authorize |
19 | | his
returns to be filed on a quarter annual basis, with the |
20 | | return for
January, February and March of a given year being |
21 | | due by April 20 of
such year; with the return for April, May |
22 | | and June of a given year being
due by July 20 of such year; |
23 | | with the return for July, August and
September of a given year |
24 | | being due by October 20 of such year, and with
the return for |
25 | | October, November and December of a given year being due
by |
26 | | January 20 of the following year. |
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1 | | If the serviceman's average monthly tax liability to
the |
2 | | Department does not exceed $50, the Department may authorize |
3 | | his
returns to be filed on an annual basis, with the return for |
4 | | a given year
being due by January 20 of the following year. |
5 | | Such quarter annual and annual returns, as to form and |
6 | | substance,
shall be subject to the same requirements as |
7 | | monthly returns. |
8 | | Notwithstanding any other provision in this Act concerning |
9 | | the time within
which a serviceman may file his return, in the |
10 | | case of any serviceman who
ceases to engage in a kind of |
11 | | business which makes him responsible for filing
returns under |
12 | | this Act, such serviceman shall file a final return under this
|
13 | | Act with the Department not more than 1 month after |
14 | | discontinuing such
business. |
15 | | Beginning October 1, 1993, a taxpayer who has an average |
16 | | monthly tax
liability of $150,000 or more shall make all |
17 | | payments required by rules of the
Department by electronic |
18 | | funds transfer. Beginning October 1, 1994, a taxpayer
who has |
19 | | an average monthly tax liability of $100,000 or more shall |
20 | | make all
payments required by rules of the Department by |
21 | | electronic funds transfer.
Beginning October 1, 1995, a |
22 | | taxpayer who has an average monthly tax liability
of $50,000 |
23 | | or more shall make all payments required by rules of the |
24 | | Department
by electronic funds transfer. Beginning October 1, |
25 | | 2000, a taxpayer who has
an annual tax liability of $200,000 or |
26 | | more shall make all payments required by
rules of the |
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1 | | Department by electronic funds transfer. The term "annual tax
|
2 | | liability" shall be the sum of the taxpayer's liabilities |
3 | | under this Act, and
under all other State and local occupation |
4 | | and use tax laws administered by the
Department, for the |
5 | | immediately preceding calendar year. The term "average
monthly |
6 | | tax liability" means
the sum of the taxpayer's liabilities |
7 | | under this Act, and under all other State
and local occupation |
8 | | and use tax laws administered by the Department, for the
|
9 | | immediately preceding calendar year divided by 12.
Beginning |
10 | | on October 1, 2002, a taxpayer who has a tax liability in the
|
11 | | amount set forth in subsection (b) of Section 2505-210 of the |
12 | | Department of
Revenue Law shall make all payments required by |
13 | | rules of the Department by
electronic funds transfer. |
14 | | Before August 1 of each year beginning in 1993, the |
15 | | Department shall
notify all taxpayers required to make |
16 | | payments by electronic funds transfer.
All taxpayers required |
17 | | to make payments by electronic funds transfer shall make
those |
18 | | payments for a minimum of one year beginning on October 1. |
19 | | Any taxpayer not required to make payments by electronic |
20 | | funds transfer may
make payments by electronic funds transfer |
21 | | with the
permission of the Department. |
22 | | All taxpayers required to make payment by electronic funds |
23 | | transfer and
any taxpayers authorized to voluntarily make |
24 | | payments by electronic funds
transfer shall make those |
25 | | payments in the manner authorized by the Department. |
26 | | The Department shall adopt such rules as are necessary to |
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1 | | effectuate a
program of electronic funds transfer and the |
2 | | requirements of this Section. |
3 | | Where a serviceman collects the tax with respect to the |
4 | | selling price of
tangible personal property which he sells and |
5 | | the purchaser thereafter returns
such tangible personal |
6 | | property and the serviceman refunds the
selling price thereof |
7 | | to the purchaser, such serviceman shall also refund,
to the |
8 | | purchaser, the tax so collected from the purchaser. When
|
9 | | filing his return for the period in which he refunds such tax |
10 | | to the
purchaser, the serviceman may deduct the amount of the |
11 | | tax so refunded by
him to the purchaser from any other Service |
12 | | Occupation Tax, Service Use
Tax, Retailers' Occupation Tax or |
13 | | Use Tax which such serviceman may be
required to pay or remit |
14 | | to the Department, as shown by such return,
provided that the |
15 | | amount of the tax to be deducted shall previously have
been |
16 | | remitted to the Department by such serviceman. If the |
17 | | serviceman shall
not previously have remitted the amount of |
18 | | such tax to the Department,
he shall be entitled to no |
19 | | deduction hereunder upon refunding such tax
to the purchaser. |
20 | | If experience indicates such action to be practicable, the |
21 | | Department
may prescribe and furnish a combination or joint |
22 | | return which will
enable servicemen, who are required to file |
23 | | returns
hereunder and also under the Retailers' Occupation Tax |
24 | | Act, the Use
Tax Act or the Service Use Tax Act, to furnish all |
25 | | the return
information required by all said Acts on the one |
26 | | form. |
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1 | | Where the serviceman has more than one business
registered |
2 | | with the Department under separate registrations hereunder,
|
3 | | such serviceman shall file separate returns for each
|
4 | | registered business. |
5 | | Beginning January 1, 1990, each month the Department shall |
6 | | pay into
the Local Government Tax Fund the revenue realized |
7 | | for the
preceding month from the 1% tax imposed under this Act. |
8 | | Beginning January 1, 1990, each month the Department shall |
9 | | pay into
the County and Mass Transit District Fund 4% of the |
10 | | revenue realized
for the preceding month from the 6.25% |
11 | | general rate on sales of tangible personal property other than |
12 | | aviation fuel sold on or after December 1, 2019. This |
13 | | exception for aviation fuel only applies for so long as the |
14 | | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. |
15 | | 47133 are binding on the State. |
16 | | Beginning August 1, 2000, each
month the Department shall |
17 | | pay into the
County and Mass Transit District Fund 20% of the |
18 | | net revenue realized for the
preceding month from the 1.25% |
19 | | rate on the selling price of motor fuel and
gasohol. |
20 | | Beginning January 1, 1990, each month the Department shall |
21 | | pay into
the Local Government Tax Fund 16% of the revenue |
22 | | realized for the
preceding month from the 6.25% general rate |
23 | | on transfers of
tangible personal property other than aviation |
24 | | fuel sold on or after December 1, 2019. This exception for |
25 | | aviation fuel only applies for so long as the revenue use |
26 | | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are |
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1 | | binding on the State. |
2 | | For aviation fuel sold on or after December 1, 2019, each |
3 | | month the Department shall pay into the State Aviation Program |
4 | | Fund 20% of the net revenue realized for the preceding month |
5 | | from the 6.25% general rate on the selling price of aviation |
6 | | fuel, less an amount estimated by the Department to be |
7 | | required for refunds of the 20% portion of the tax on aviation |
8 | | fuel under this Act, which amount shall be deposited into the |
9 | | Aviation Fuel Sales Tax Refund Fund. The Department shall only |
10 | | pay moneys into the State Aviation Program Fund and the |
11 | | Aviation Fuel Sales Tax Refund Fund under this Act for so long |
12 | | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 |
13 | | U.S.C. 47133 are binding on the State. |
14 | | Beginning August 1, 2000, each
month the Department shall |
15 | | pay into the
Local Government Tax Fund 80% of the net revenue |
16 | | realized for the preceding
month from the 1.25% rate on the |
17 | | selling price of motor fuel and gasohol. |
18 | | Beginning October 1, 2009, each month the Department shall |
19 | | pay into the Capital Projects Fund an amount that is equal to |
20 | | an amount estimated by the Department to represent 80% of the |
21 | | net revenue realized for the preceding month from the sale of |
22 | | candy, grooming and hygiene products, and soft drinks that had |
23 | | been taxed at a rate of 1% prior to September 1, 2009 but that |
24 | | are now taxed at 6.25%. |
25 | | Beginning July 1, 2013, each month the Department shall |
26 | | pay into the Underground Storage Tank Fund from the proceeds |
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1 | | collected under this Act, the Use Tax Act, the Service Use Tax |
2 | | Act, and the Retailers' Occupation Tax Act an amount equal to |
3 | | the average monthly deficit in the Underground Storage Tank |
4 | | Fund during the prior year, as certified annually by the |
5 | | Illinois Environmental Protection Agency, but the total |
6 | | payment into the Underground Storage Tank Fund under this Act, |
7 | | the Use Tax Act, the Service Use Tax Act, and the Retailers' |
8 | | Occupation Tax Act shall not exceed $18,000,000 in any State |
9 | | fiscal year. As used in this paragraph, the "average monthly |
10 | | deficit" shall be equal to the difference between the average |
11 | | monthly claims for payment by the fund and the average monthly |
12 | | revenues deposited into the fund, excluding payments made |
13 | | pursuant to this paragraph. |
14 | | Beginning July 1, 2015, of the remainder of the moneys |
15 | | received by the Department under the Use Tax Act, the Service |
16 | | Use Tax Act, this Act, and the Retailers' Occupation Tax Act, |
17 | | each month the Department shall deposit $500,000 into the |
18 | | State Crime Laboratory Fund. |
19 | | Of the remainder of the moneys received by the Department |
20 | | pursuant to
this Act, (a) 1.75% thereof shall be paid into the |
21 | | Build Illinois Fund and
(b) prior to July 1, 1989, 2.2% and on |
22 | | and after July 1, 1989, 3.8% thereof
shall be paid into the |
23 | | Build Illinois Fund; provided, however, that if in
any fiscal |
24 | | year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
|
25 | | may be, of the moneys received by the Department and required |
26 | | to be paid
into the Build Illinois Fund pursuant to Section 3 |
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1 | | of the Retailers'
Occupation Tax Act, Section 9 of the Use Tax |
2 | | Act, Section 9 of the Service
Use Tax Act, and Section 9 of the |
3 | | Service Occupation Tax Act, such Acts
being hereinafter called |
4 | | the "Tax Acts" and such aggregate of 2.2% or 3.8%,
as the case |
5 | | may be, of moneys being hereinafter called the "Tax Act
|
6 | | Amount", and (2) the amount transferred to the Build Illinois |
7 | | Fund from the
State and Local Sales Tax Reform Fund shall be |
8 | | less than the Annual
Specified Amount (as defined in Section 3 |
9 | | of the Retailers' Occupation Tax
Act), an amount equal to the |
10 | | difference shall be immediately paid into the
Build Illinois |
11 | | Fund from other moneys received by the Department pursuant
to |
12 | | the Tax Acts; and further provided, that if on the last |
13 | | business day of
any month the sum of (1) the Tax Act Amount |
14 | | required to be deposited into
the Build Illinois Account in |
15 | | the Build Illinois Fund during such month and
(2) the amount |
16 | | transferred during such month to the Build Illinois Fund
from |
17 | | the State and Local Sales Tax Reform Fund shall have been less |
18 | | than
1/12 of the Annual Specified Amount, an amount equal to |
19 | | the difference
shall be immediately paid into the Build |
20 | | Illinois Fund from other moneys
received by the Department |
21 | | pursuant to the Tax Acts; and, further provided,
that in no |
22 | | event shall the payments required under the preceding proviso
|
23 | | result in aggregate payments into the Build Illinois Fund |
24 | | pursuant to this
clause (b) for any fiscal year in excess of |
25 | | the greater of (i) the Tax Act
Amount or (ii) the Annual |
26 | | Specified Amount for such fiscal year; and,
further provided, |
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1 | | that the amounts payable into the Build Illinois Fund
under |
2 | | this clause (b) shall be payable only until such time as the
|
3 | | aggregate amount on deposit under each trust indenture |
4 | | securing Bonds
issued and outstanding pursuant to the Build |
5 | | Illinois Bond Act is
sufficient, taking into account any |
6 | | future investment income, to fully
provide, in accordance with |
7 | | such indenture, for the defeasance of or the
payment of the |
8 | | principal of, premium, if any, and interest on the Bonds
|
9 | | secured by such indenture and on any Bonds expected to be |
10 | | issued thereafter
and all fees and costs payable with respect |
11 | | thereto, all as certified by
the Director of the
Bureau of the |
12 | | Budget (now Governor's Office of Management and Budget). If
on |
13 | | the last business day of
any month in which Bonds are |
14 | | outstanding pursuant to the Build Illinois
Bond Act, the |
15 | | aggregate of the moneys deposited
in the Build Illinois Bond |
16 | | Account in the Build Illinois Fund in such month
shall be less |
17 | | than the amount required to be transferred in such month from
|
18 | | the Build Illinois Bond Account to the Build Illinois Bond |
19 | | Retirement and
Interest Fund pursuant to Section 13 of the |
20 | | Build Illinois Bond Act, an
amount equal to such deficiency |
21 | | shall be immediately paid
from other moneys received by the |
22 | | Department pursuant to the Tax Acts
to the Build Illinois |
23 | | Fund; provided, however, that any amounts paid to the
Build |
24 | | Illinois Fund in any fiscal year pursuant to this sentence |
25 | | shall be
deemed to constitute payments pursuant to clause (b) |
26 | | of the preceding
sentence and shall reduce the amount |
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1 | | otherwise payable for such fiscal year
pursuant to clause (b) |
2 | | of the preceding sentence. The moneys received by
the |
3 | | Department pursuant to this Act and required to be deposited |
4 | | into the
Build Illinois Fund are subject to the pledge, claim |
5 | | and charge set forth
in Section 12 of the Build Illinois Bond |
6 | | Act. |
7 | | Subject to payment of amounts into the Build Illinois Fund |
8 | | as provided in
the preceding paragraph or in any amendment |
9 | | thereto hereafter enacted, the
following specified monthly |
10 | | installment of the amount requested in the
certificate of the |
11 | | Chairman of the Metropolitan Pier and Exposition
Authority |
12 | | provided under Section 8.25f of the State Finance Act, but not |
13 | | in
excess of the sums designated as "Total Deposit", shall be |
14 | | deposited in the
aggregate from collections under Section 9 of |
15 | | the Use Tax Act, Section 9 of
the Service Use Tax Act, Section |
16 | | 9 of the Service Occupation Tax Act, and
Section 3 of the |
17 | | Retailers' Occupation Tax Act into the McCormick Place
|
18 | | Expansion Project Fund in the specified fiscal years. |
|
19 | | Fiscal Year | | Total Deposit | |
20 | | 1993 | | $0 | |
21 | | 1994 | | 53,000,000 | |
22 | | 1995 | | 58,000,000 | |
23 | | 1996 | | 61,000,000 | |
24 | | 1997 | | 64,000,000 | |
25 | | 1998 | | 68,000,000 | |
|
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1 | | 1999 | | 71,000,000 | |
2 | | 2000 | | 75,000,000 | |
3 | | 2001 | | 80,000,000 | |
4 | | 2002 | | 93,000,000 | |
5 | | 2003 | | 99,000,000 | |
6 | | 2004 | | 103,000,000 | |
7 | | 2005 | | 108,000,000 | |
8 | | 2006 | | 113,000,000 | |
9 | | 2007 | | 119,000,000 | |
10 | | 2008 | | 126,000,000 | |
11 | | 2009 | | 132,000,000 | |
12 | | 2010 | | 139,000,000 | |
13 | | 2011 | | 146,000,000 | |
14 | | 2012 | | 153,000,000 | |
15 | | 2013 | | 161,000,000 | |
16 | | 2014 | | 170,000,000 | |
17 | | 2015 | | 179,000,000 | |
18 | | 2016 | | 189,000,000 | |
19 | | 2017 | | 199,000,000 | |
20 | | 2018 | | 210,000,000 | |
21 | | 2019 | | 221,000,000 | |
22 | | 2020 | | 233,000,000 | |
23 | | 2021 | | 300,000,000 | |
24 | | 2022 | | 300,000,000 | |
25 | | 2023 | | 300,000,000 | |
26 | | 2024 | | 300,000,000 | |
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1 | | 2025 | | 300,000,000 | |
2 | | 2026 | | 300,000,000 | |
3 | | 2027 | | 375,000,000 | |
4 | | 2028 | | 375,000,000 | |
5 | | 2029 | | 375,000,000 | |
6 | | 2030 | | 375,000,000 | |
7 | | 2031 | | 375,000,000 | |
8 | | 2032 | | 375,000,000 | |
9 | | 2033 | | 375,000,000 | |
10 | | 2034 | | 375,000,000 | |
11 | | 2035 | | 375,000,000 | |
12 | | 2036 | | 450,000,000 | |
13 | | and | | |
|
14 | | each fiscal year | | |
|
15 | | thereafter that bonds | | |
|
16 | | are outstanding under | | |
|
17 | | Section 13.2 of the | | |
|
18 | | Metropolitan Pier and | | |
|
19 | | Exposition Authority Act, | | |
|
20 | | but not after fiscal year 2060. | | |
|
21 | | Beginning July 20, 1993 and in each month of each fiscal |
22 | | year thereafter,
one-eighth of the amount requested in the |
23 | | certificate of the Chairman of
the Metropolitan Pier and |
24 | | Exposition Authority for that fiscal year, less
the amount |
25 | | deposited into the McCormick Place Expansion Project Fund by |
26 | | the
State Treasurer in the respective month under subsection |
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1 | | (g) of Section 13
of the Metropolitan Pier and Exposition |
2 | | Authority Act, plus cumulative
deficiencies in the deposits |
3 | | required under this Section for previous
months and years, |
4 | | shall be deposited into the McCormick Place Expansion
Project |
5 | | Fund, until the full amount requested for the fiscal year, but |
6 | | not
in excess of the amount specified above as "Total |
7 | | Deposit", has been deposited. |
8 | | Subject to payment of amounts into the Capital Projects |
9 | | Fund, the Build Illinois Fund, and the McCormick Place |
10 | | Expansion Project Fund pursuant to the preceding paragraphs or |
11 | | in any amendments thereto hereafter enacted, for aviation fuel |
12 | | sold on or after December 1, 2019, the Department shall each |
13 | | month deposit into the Aviation Fuel Sales Tax Refund Fund an |
14 | | amount estimated by the Department to be required for refunds |
15 | | of the 80% portion of the tax on aviation fuel under this Act. |
16 | | The Department shall only deposit moneys into the Aviation |
17 | | Fuel Sales Tax Refund Fund under this paragraph for so long as |
18 | | the revenue use requirements of 49 U.S.C. 47107(b) and 49 |
19 | | U.S.C. 47133 are binding on the State. |
20 | | Subject to payment of amounts into the Build Illinois Fund |
21 | | and the
McCormick
Place Expansion Project Fund
pursuant to the |
22 | | preceding paragraphs or in any amendments thereto hereafter
|
23 | | enacted, beginning July 1, 1993 and ending on September 30, |
24 | | 2013, the Department shall each month pay into the
Illinois |
25 | | Tax Increment Fund 0.27% of 80% of the net revenue realized for |
26 | | the
preceding month from the 6.25% general rate on the selling |
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1 | | price of tangible
personal property. |
2 | | Subject to payment of amounts into the Build Illinois Fund |
3 | | and the
McCormick Place Expansion Project Fund pursuant to the |
4 | | preceding paragraphs or in any
amendments thereto hereafter |
5 | | enacted, beginning with the receipt of the first
report of |
6 | | taxes paid by an eligible business and continuing for a |
7 | | 25-year
period, the Department shall each month pay into the |
8 | | Energy Infrastructure
Fund 80% of the net revenue realized |
9 | | from the 6.25% general rate on the
selling price of |
10 | | Illinois-mined coal that was sold to an eligible business.
For |
11 | | purposes of this paragraph, the term "eligible business" means |
12 | | a new
electric generating facility certified pursuant to |
13 | | Section 605-332 of the
Department of Commerce and
Economic |
14 | | Opportunity Law of the Civil Administrative
Code of Illinois. |
15 | | Subject to payment of amounts into the Build Illinois |
16 | | Fund, the McCormick Place Expansion Project Fund, the Illinois |
17 | | Tax Increment Fund, and the Energy Infrastructure Fund |
18 | | pursuant to the preceding paragraphs or in any amendments to |
19 | | this Section hereafter enacted, beginning on the first day of |
20 | | the first calendar month to occur on or after August 26, 2014 |
21 | | (the effective date of Public Act 98-1098), each month, from |
22 | | the collections made under Section 9 of the Use Tax Act, |
23 | | Section 9 of the Service Use Tax Act, Section 9 of the Service |
24 | | Occupation Tax Act, and Section 3 of the Retailers' Occupation |
25 | | Tax Act, the Department shall pay into the Tax Compliance and |
26 | | Administration Fund, to be used, subject to appropriation, to |
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1 | | fund additional auditors and compliance personnel at the |
2 | | Department of Revenue, an amount equal to 1/12 of 5% of 80% of |
3 | | the cash receipts collected during the preceding fiscal year |
4 | | by the Audit Bureau of the Department under the Use Tax Act, |
5 | | the Service Use Tax Act, the Service Occupation Tax Act, the |
6 | | Retailers' Occupation Tax Act, and associated local occupation |
7 | | and use taxes administered by the Department. |
8 | | Subject to payments of amounts into the Build Illinois |
9 | | Fund, the McCormick Place Expansion Project Fund, the Illinois |
10 | | Tax Increment Fund, the Energy Infrastructure Fund, and the |
11 | | Tax Compliance and Administration Fund as provided in this |
12 | | Section, beginning on July 1, 2018 the Department shall pay |
13 | | each month into the Downstate Public Transportation Fund the |
14 | | moneys required to be so paid under Section 2-3 of the |
15 | | Downstate Public Transportation Act. |
16 | | Subject to successful execution and delivery of a |
17 | | public-private agreement between the public agency and private |
18 | | entity and completion of the civic build, beginning on July 1, |
19 | | 2023, of the remainder of the moneys received by the |
20 | | Department under the Use Tax Act, the Service Use Tax Act, the |
21 | | Service Occupation Tax Act, and this Act, the Department shall |
22 | | deposit the following specified deposits in the aggregate from |
23 | | collections under the Use Tax Act, the Service Use Tax Act, the |
24 | | Service Occupation Tax Act, and the Retailers' Occupation Tax |
25 | | Act, as required under Section 8.25g of the State Finance Act |
26 | | for distribution consistent with the Public-Private |
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1 | | Partnership for Civic and Transit Infrastructure Project Act. |
2 | | The moneys received by the Department pursuant to this Act and |
3 | | required to be deposited into the Civic and Transit |
4 | | Infrastructure Fund are subject to the pledge, claim and |
5 | | charge set forth in Section 25-55 of the Public-Private |
6 | | Partnership for Civic and Transit Infrastructure Project Act. |
7 | | As used in this paragraph, "civic build", "private entity", |
8 | | "public-private agreement", and "public agency" have the |
9 | | meanings provided in Section 25-10 of the Public-Private |
10 | | Partnership for Civic and Transit Infrastructure Project Act. |
11 | | Fiscal Year ............................Total Deposit |
12 | | 2024 ....................................$200,000,000 |
13 | | 2025 ....................................$206,000,000 |
14 | | 2026 ....................................$212,200,000 |
15 | | 2027 ....................................$218,500,000 |
16 | | 2028 ....................................$225,100,000 |
17 | | 2029 ....................................$288,700,000 |
18 | | 2030 ....................................$298,900,000 |
19 | | 2031 ....................................$309,300,000 |
20 | | 2032 ....................................$320,100,000 |
21 | | 2033 ....................................$331,200,000 |
22 | | 2034 ....................................$341,200,000 |
23 | | 2035 ....................................$351,400,000 |
24 | | 2036 ....................................$361,900,000 |
25 | | 2037 ....................................$372,800,000 |
26 | | 2038 ....................................$384,000,000 |
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1 | | 2039 ....................................$395,500,000 |
2 | | 2040 ....................................$407,400,000 |
3 | | 2041 ....................................$419,600,000 |
4 | | 2042 ....................................$432,200,000 |
5 | | 2043 ....................................$445,100,000 |
6 | | Beginning July 1, 2021 and until July 1, 2022, subject to |
7 | | the payment of amounts into the County and Mass Transit |
8 | | District Fund, the Local Government Tax Fund, the Build |
9 | | Illinois Fund, the McCormick Place Expansion Project Fund, the |
10 | | Illinois Tax Increment Fund, the Energy Infrastructure Fund, |
11 | | and the Tax Compliance and Administration Fund as provided in |
12 | | this Section, the Department shall pay each month into the |
13 | | Road Fund the amount estimated to represent 16% of the net |
14 | | revenue realized from the taxes imposed on motor fuel and |
15 | | gasohol. Beginning July 1, 2022 and until July 1, 2023, |
16 | | subject to the payment of amounts into the County and Mass |
17 | | Transit District Fund, the Local Government Tax Fund, the |
18 | | Build Illinois Fund, the McCormick Place Expansion Project |
19 | | Fund, the Illinois Tax Increment Fund, the Energy |
20 | | Infrastructure Fund, and the Tax Compliance and Administration |
21 | | Fund as provided in this Section, the Department shall pay |
22 | | each month into the Road Fund the amount estimated to |
23 | | represent 32% of the net revenue realized from the taxes |
24 | | imposed on motor fuel and gasohol. Beginning July 1, 2023 and |
25 | | until July 1, 2024, subject to the payment of amounts into the |
26 | | County and Mass Transit District Fund, the Local Government |
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1 | | Tax Fund, the Build Illinois Fund, the McCormick Place |
2 | | Expansion Project Fund, the Illinois Tax Increment Fund, the |
3 | | Energy Infrastructure Fund, and the Tax Compliance and |
4 | | Administration Fund as provided in this Section, the |
5 | | Department shall pay each month into the Road Fund the amount |
6 | | estimated to represent 48% of the net revenue realized from |
7 | | the taxes imposed on motor fuel and gasohol. Beginning July 1, |
8 | | 2024 and until July 1, 2025, subject to the payment of amounts |
9 | | into the County and Mass Transit District Fund, the Local |
10 | | Government Tax Fund, the Build Illinois Fund, the McCormick |
11 | | Place Expansion Project Fund, the Illinois Tax Increment Fund, |
12 | | the Energy Infrastructure Fund, and the Tax Compliance and |
13 | | Administration Fund as provided in this Section, the |
14 | | Department shall pay each month into the Road Fund the amount |
15 | | estimated to represent 64% of the net revenue realized from |
16 | | the taxes imposed on motor fuel and gasohol. Beginning on July |
17 | | 1, 2025, subject to the payment of amounts into the County and |
18 | | Mass Transit District Fund, the Local Government Tax Fund, the |
19 | | Build Illinois Fund, the McCormick Place Expansion Project |
20 | | Fund, the Illinois Tax Increment Fund, the Energy |
21 | | Infrastructure Fund, and the Tax Compliance and Administration |
22 | | Fund as provided in this Section, the Department shall pay |
23 | | each month into the Road Fund the amount estimated to |
24 | | represent 80% of the net revenue realized from the taxes |
25 | | imposed on motor fuel and gasohol. As used in this paragraph |
26 | | "motor fuel" has the meaning given to that term in Section 1.1 |
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1 | | of the Motor Fuel Tax Law, and "gasohol" has the meaning given |
2 | | to that term in Section 3-40 of the Use Tax Act. |
3 | | Of the remainder of the moneys received by the Department |
4 | | pursuant to this
Act, 75% shall be paid into the General |
5 | | Revenue Fund of the State Treasury and 25% shall be reserved in |
6 | | a special account and used only for the transfer to the Common |
7 | | School Fund as part of the monthly transfer from the General |
8 | | Revenue Fund in accordance with Section 8a of the State |
9 | | Finance Act. |
10 | | The Department may, upon separate written notice to a |
11 | | taxpayer,
require the taxpayer to prepare and file with the |
12 | | Department on a form
prescribed by the Department within not |
13 | | less than 60 days after receipt
of the notice an annual |
14 | | information return for the tax year specified in
the notice. |
15 | | Such annual return to the Department shall include a
statement |
16 | | of gross receipts as shown by the taxpayer's last Federal |
17 | | income
tax return. If the total receipts of the business as |
18 | | reported in the
Federal income tax return do not agree with the |
19 | | gross receipts reported to
the Department of Revenue for the |
20 | | same period, the taxpayer shall attach
to his annual return a |
21 | | schedule showing a reconciliation of the 2
amounts and the |
22 | | reasons for the difference. The taxpayer's annual
return to |
23 | | the Department shall also disclose the cost of goods sold by
|
24 | | the taxpayer during the year covered by such return, opening |
25 | | and closing
inventories of such goods for such year, cost of |
26 | | goods used from stock
or taken from stock and given away by the |
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1 | | taxpayer during such year, pay
roll information of the |
2 | | taxpayer's business during such year and any
additional |
3 | | reasonable information which the Department deems would be
|
4 | | helpful in determining the accuracy of the monthly, quarterly |
5 | | or annual
returns filed by such taxpayer as hereinbefore |
6 | | provided for in this
Section. |
7 | | If the annual information return required by this Section |
8 | | is not
filed when and as required, the taxpayer shall be liable |
9 | | as follows: |
10 | | (i) Until January 1, 1994, the taxpayer shall be |
11 | | liable
for a penalty equal to 1/6 of 1% of the tax due from |
12 | | such taxpayer
under this Act during the period to be |
13 | | covered by the annual return
for each month or fraction of |
14 | | a month until such return is filed as
required, the |
15 | | penalty to be assessed and collected in the same manner
as |
16 | | any other penalty provided for in this Act. |
17 | | (ii) On and after January 1, 1994, the taxpayer shall |
18 | | be liable for a
penalty as described in Section 3-4 of the |
19 | | Uniform Penalty and Interest Act. |
20 | | The chief executive officer, proprietor, owner or highest |
21 | | ranking
manager shall sign the annual return to certify the |
22 | | accuracy of the
information contained therein. Any person who |
23 | | willfully signs the
annual return containing false or |
24 | | inaccurate information shall be guilty
of perjury and punished |
25 | | accordingly. The annual return form prescribed
by the |
26 | | Department shall include a warning that the person signing the
|
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1 | | return may be liable for perjury. |
2 | | The foregoing portion of this Section concerning the |
3 | | filing of an
annual information return shall not apply to a |
4 | | serviceman who is not
required to file an income tax return |
5 | | with the United States Government. |
6 | | As soon as possible after the first day of each month, upon |
7 | | certification
of the Department of Revenue, the Comptroller |
8 | | shall order transferred and
the Treasurer shall transfer from |
9 | | the General Revenue Fund to the Motor
Fuel Tax Fund an amount |
10 | | equal to 1.7% of 80% of the net revenue realized
under this Act |
11 | | for the second preceding month.
Beginning April 1, 2000, this |
12 | | transfer is no longer required
and shall not be made. |
13 | | Net revenue realized for a month shall be the revenue |
14 | | collected by the State
pursuant to this Act, less the amount |
15 | | paid out during that month as
refunds to taxpayers for |
16 | | overpayment of liability. |
17 | | For greater simplicity of administration, it shall be |
18 | | permissible for
manufacturers, importers and wholesalers whose |
19 | | products are sold by numerous
servicemen in Illinois, and who |
20 | | wish to do so, to
assume the responsibility for accounting and |
21 | | paying to the Department
all tax accruing under this Act with |
22 | | respect to such sales, if the
servicemen who are affected do |
23 | | not make written objection to the
Department to this |
24 | | arrangement. |
25 | | (Source: P.A. 101-10, Article 15, Section 15-20, eff. 6-5-19; |
26 | | 101-10, Article 25, Section 25-115, eff. 6-5-19; 101-27, eff. |
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1 | | 6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19; |
2 | | 101-636, eff. 6-10-20; 102-700, eff. 4-19-22.) |
3 | | Section 70-20. The Retailers' Occupation Tax Act is |
4 | | amended by changing Section 3 as follows:
|
5 | | (35 ILCS 120/3) (from Ch. 120, par. 442)
|
6 | | Sec. 3. Except as provided in this Section, on or before |
7 | | the twentieth
day of each calendar month, every person engaged |
8 | | in the business of
selling tangible personal property at |
9 | | retail in this State during the
preceding calendar month shall |
10 | | file a return with the Department, stating: |
11 | | 1. The name of the seller; |
12 | | 2. His residence address and the address of his |
13 | | principal place of
business and the address of the |
14 | | principal place of business (if that is
a different |
15 | | address) from which he engages in the business of selling
|
16 | | tangible personal property at retail in this State; |
17 | | 3. Total amount of receipts received by him during the |
18 | | preceding
calendar month or quarter, as the case may be, |
19 | | from sales of tangible
personal property, and from |
20 | | services furnished, by him during such
preceding calendar |
21 | | month or quarter; |
22 | | 4. Total amount received by him during the preceding |
23 | | calendar month or
quarter on charge and time sales of |
24 | | tangible personal property, and from
services furnished, |
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1 | | by him prior to the month or quarter for which the return
|
2 | | is filed; |
3 | | 5. Deductions allowed by law; |
4 | | 6. Gross receipts which were received by him during |
5 | | the preceding
calendar month or quarter and upon the basis |
6 | | of which the tax is imposed, including gross receipts on |
7 | | food for human consumption that is to be consumed off the |
8 | | premises where it is sold (other than alcoholic beverages, |
9 | | food consisting of or infused with adult use cannabis, |
10 | | soft drinks, and food that has been prepared for immediate |
11 | | consumption) which were received during the preceding |
12 | | calendar month or quarter and upon which tax would have |
13 | | been due but for the 0% rate imposed under Public Act |
14 | | 102-700 this amendatory Act of the 102nd General Assembly ; |
15 | | 7. The amount of credit provided in Section 2d of this |
16 | | Act; |
17 | | 8. The amount of tax due, including the amount of tax |
18 | | that would have been due on food for human consumption |
19 | | that is to be consumed off the premises where it is sold |
20 | | (other than alcoholic beverages, food consisting of or |
21 | | infused with adult use cannabis, soft drinks, and food |
22 | | that has been prepared for immediate consumption) but for |
23 | | the 0% rate imposed under Public Act 102-700 this |
24 | | amendatory Act of the 102nd General Assembly ; |
25 | | 9. The signature of the taxpayer; and |
26 | | 10. Such other reasonable information as the |
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1 | | Department may require. |
2 | | On and after January 1, 2018, except for returns required |
3 | | to be filed prior to January 1, 2023 for motor vehicles, |
4 | | watercraft, aircraft, and trailers that are required to be |
5 | | registered with an agency of this State, with respect to |
6 | | retailers whose annual gross receipts average $20,000 or more, |
7 | | all returns required to be filed pursuant to this Act shall be |
8 | | filed electronically. On and after January 1, 2023, with |
9 | | respect to retailers whose annual gross receipts average |
10 | | $20,000 or more, all returns required to be filed pursuant to |
11 | | this Act, including, but not limited to, returns for motor |
12 | | vehicles, watercraft, aircraft, and trailers that are required |
13 | | to be registered with an agency of this State, shall be filed |
14 | | electronically. Retailers who demonstrate that they do not |
15 | | have access to the Internet or demonstrate hardship in filing |
16 | | electronically may petition the Department to waive the |
17 | | electronic filing requirement. |
18 | | If a taxpayer fails to sign a return within 30 days after |
19 | | the proper notice
and demand for signature by the Department, |
20 | | the return shall be considered
valid and any amount shown to be |
21 | | due on the return shall be deemed assessed. |
22 | | Each return shall be accompanied by the statement of |
23 | | prepaid tax issued
pursuant to Section 2e for which credit is |
24 | | claimed. |
25 | | Prior to October 1, 2003, and on and after September 1, |
26 | | 2004 a retailer may accept a Manufacturer's Purchase
Credit
|
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1 | | certification from a purchaser in satisfaction of Use Tax
as |
2 | | provided in Section 3-85 of the Use Tax Act if the purchaser |
3 | | provides the
appropriate documentation as required by Section |
4 | | 3-85
of the Use Tax Act. A Manufacturer's Purchase Credit
|
5 | | certification, accepted by a retailer prior to October 1, 2003 |
6 | | and on and after September 1, 2004 as provided
in
Section 3-85 |
7 | | of the Use Tax Act, may be used by that retailer to
satisfy |
8 | | Retailers' Occupation Tax liability in the amount claimed in
|
9 | | the certification, not to exceed 6.25% of the receipts
subject |
10 | | to tax from a qualifying purchase. A Manufacturer's Purchase |
11 | | Credit
reported on any original or amended return
filed under
|
12 | | this Act after October 20, 2003 for reporting periods prior to |
13 | | September 1, 2004 shall be disallowed. Manufacturer's Purchase |
14 | | Credit reported on annual returns due on or after January 1, |
15 | | 2005 will be disallowed for periods prior to September 1, |
16 | | 2004. No Manufacturer's
Purchase Credit may be used after |
17 | | September 30, 2003 through August 31, 2004 to
satisfy any
tax |
18 | | liability imposed under this Act, including any audit |
19 | | liability. |
20 | | Beginning on July 1, 2023 and through December 31, 2032, a |
21 | | retailer may accept a Sustainable Aviation Fuel Purchase |
22 | | Credit certification from an air common carrier-purchaser in |
23 | | satisfaction of Use Tax on aviation fuel as provided in |
24 | | Section 3-87 of the Use Tax Act if the purchaser provides the |
25 | | appropriate documentation as required by Section 3-87 of the |
26 | | Use Tax Act. A Sustainable Aviation Fuel Purchase Credit |
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1 | | certification accepted by a retailer in accordance with this |
2 | | paragraph may be used by that retailer to satisfy Retailers' |
3 | | Occupation Tax liability (but not in satisfaction of penalty |
4 | | or interest) in the amount claimed in the certification, not |
5 | | to exceed 6.25% of the receipts subject to tax from a sale of |
6 | | aviation fuel. In addition, for a sale of aviation fuel to |
7 | | qualify to earn the Sustainable Aviation Fuel Purchase Credit, |
8 | | retailers must retain in their books and records a |
9 | | certification from the producer of the aviation fuel that the |
10 | | aviation fuel sold by the retailer and for which a sustainable |
11 | | aviation fuel purchase credit was earned meets the definition |
12 | | of sustainable aviation fuel under Section 3-87 of the Use Tax |
13 | | Act. The documentation must include detail sufficient for the |
14 | | Department to determine the number of gallons of sustainable |
15 | | aviation fuel sold. |
16 | | The Department may require returns to be filed on a |
17 | | quarterly basis.
If so required, a return for each calendar |
18 | | quarter shall be filed on or
before the twentieth day of the |
19 | | calendar month following the end of such
calendar quarter. The |
20 | | taxpayer shall also file a return with the
Department for each |
21 | | of the first two months of each calendar quarter, on or
before |
22 | | the 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; |
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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; and |
9 | | 6. Such other reasonable information as the Department |
10 | | may
require. |
11 | | Every person engaged in the business of selling aviation |
12 | | fuel at retail in this State during the preceding calendar |
13 | | month shall, instead of reporting and paying tax as otherwise |
14 | | required by this Section, report and pay such tax on a separate |
15 | | aviation fuel tax return. The requirements related to the |
16 | | return shall be as otherwise provided in this Section. |
17 | | Notwithstanding any other provisions of this Act to the |
18 | | contrary, retailers selling aviation fuel shall file all |
19 | | aviation fuel tax returns and shall make all aviation fuel tax |
20 | | payments by electronic means in the manner and form required |
21 | | by the Department. For purposes of this Section, "aviation |
22 | | fuel" means jet fuel and aviation gasoline. |
23 | | Beginning on October 1, 2003, any person who is not a |
24 | | licensed
distributor, importing distributor, or manufacturer, |
25 | | as defined in the Liquor
Control Act of 1934, but is engaged in |
26 | | the business of
selling, at retail, alcoholic liquor
shall |
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1 | | file a statement with the Department of Revenue, in a format
|
2 | | and at a time prescribed by the Department, showing the total |
3 | | amount paid for
alcoholic liquor purchased during the |
4 | | preceding month and such other
information as is reasonably |
5 | | required by the Department.
The Department may adopt rules to |
6 | | require
that this statement be filed in an electronic or |
7 | | telephonic format. Such rules
may provide for exceptions from |
8 | | the filing requirements of this paragraph. For
the
purposes of |
9 | | this
paragraph, the term "alcoholic liquor" shall have the |
10 | | meaning prescribed in the
Liquor Control Act of 1934. |
11 | | Beginning on October 1, 2003, every distributor, importing |
12 | | distributor, and
manufacturer of alcoholic liquor as defined |
13 | | in the Liquor Control Act of 1934,
shall file a
statement with |
14 | | the Department of Revenue, no later than the 10th day of the
|
15 | | month for the
preceding month during which transactions |
16 | | occurred, by electronic means,
showing the
total amount of |
17 | | gross receipts from the sale of alcoholic liquor sold or
|
18 | | distributed during
the preceding month to purchasers; |
19 | | identifying the purchaser to whom it was
sold or
distributed; |
20 | | the purchaser's tax registration number; and such other
|
21 | | information
reasonably required by the Department. A |
22 | | distributor, importing distributor, or manufacturer of |
23 | | alcoholic liquor must personally deliver, mail, or provide by |
24 | | electronic means to each retailer listed on the monthly |
25 | | statement a report containing a cumulative total of that |
26 | | distributor's, importing distributor's, or manufacturer's |
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1 | | total sales of alcoholic liquor to that retailer no later than |
2 | | the 10th day of the month for the preceding month during which |
3 | | the transaction occurred. The distributor, importing |
4 | | distributor, or manufacturer shall notify the retailer as to |
5 | | the method by which the distributor, importing distributor, or |
6 | | manufacturer will provide the sales information. If the |
7 | | retailer is unable to receive the sales information by |
8 | | electronic means, the distributor, importing distributor, or |
9 | | manufacturer shall furnish the sales information by personal |
10 | | delivery or by mail. For purposes of this paragraph, the term |
11 | | "electronic means" includes, but is not limited to, the use of |
12 | | a secure Internet website, e-mail, or facsimile. |
13 | | If a total amount of less than $1 is payable, refundable or |
14 | | creditable,
such amount shall be disregarded if it is less |
15 | | than 50 cents and shall be
increased to $1 if it is 50 cents or |
16 | | more. |
17 | | Notwithstanding any other provision of this Act to the |
18 | | contrary, retailers subject to tax on cannabis shall file all |
19 | | cannabis tax returns and shall make all cannabis tax payments |
20 | | by electronic means in the manner and form required by the |
21 | | Department. |
22 | | Beginning October 1, 1993,
a taxpayer who has an average |
23 | | monthly tax liability of $150,000 or more shall
make all |
24 | | payments required by rules of the
Department by electronic |
25 | | funds transfer. Beginning October 1, 1994, a taxpayer
who has |
26 | | an average monthly tax liability of $100,000 or more shall |
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1 | | make all
payments required by rules of the Department by |
2 | | electronic funds transfer.
Beginning October 1, 1995, a |
3 | | taxpayer who has an average monthly tax liability
of $50,000 |
4 | | or more shall make all
payments required by rules of the |
5 | | Department by electronic funds transfer.
Beginning October 1, |
6 | | 2000, a taxpayer who has an annual tax liability of
$200,000 or |
7 | | more shall make all payments required by rules of the |
8 | | Department by
electronic funds transfer. The term "annual tax |
9 | | liability" shall be the sum of
the taxpayer's liabilities |
10 | | under this Act, and under all other State and local
occupation |
11 | | and use tax laws administered by the Department, for the |
12 | | immediately
preceding calendar year.
The term "average monthly |
13 | | tax liability" shall be the sum of the
taxpayer's liabilities |
14 | | under this
Act, and under all other State and local occupation |
15 | | and use tax
laws administered by the Department, for the |
16 | | immediately preceding calendar
year divided by 12.
Beginning |
17 | | on October 1, 2002, a taxpayer who has a tax liability in the
|
18 | | amount set forth in subsection (b) of Section 2505-210 of the |
19 | | Department of
Revenue Law shall make all payments required by |
20 | | rules of the Department by
electronic funds transfer. |
21 | | Before August 1 of each year beginning in 1993, the |
22 | | Department shall
notify all taxpayers required to make |
23 | | payments by electronic funds
transfer. All taxpayers
required |
24 | | to make payments by electronic funds transfer shall make those
|
25 | | payments for
a minimum of one year beginning on October 1. |
26 | | Any taxpayer not required to make payments by electronic |
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1 | | funds transfer may
make payments by electronic funds transfer |
2 | | with
the permission of the Department. |
3 | | All taxpayers required to make payment by electronic funds |
4 | | transfer and
any taxpayers authorized to voluntarily make |
5 | | payments by electronic funds
transfer shall make those |
6 | | payments in the manner authorized by the Department. |
7 | | The Department shall adopt such rules as are necessary to |
8 | | effectuate a
program of electronic funds transfer and the |
9 | | requirements of this Section. |
10 | | Any amount which is required to be shown or reported on any |
11 | | return or
other document under this Act shall, if such amount |
12 | | is not a whole-dollar
amount, be increased to the nearest |
13 | | whole-dollar amount in any case where
the fractional part of a |
14 | | dollar is 50 cents or more, and decreased to the
nearest |
15 | | whole-dollar amount where the fractional part of a dollar is |
16 | | less
than 50 cents. |
17 | | If the retailer is otherwise required to file a monthly |
18 | | return and if the
retailer's average monthly tax liability to |
19 | | the Department does not exceed
$200, the Department may |
20 | | authorize his returns to be filed on a quarter
annual basis, |
21 | | with the return for January, February and March of a given
year |
22 | | being due by April 20 of such year; with the return for April, |
23 | | May and
June of a given year being due by July 20 of such year; |
24 | | with the return for
July, August and September of a given year |
25 | | being due by October 20 of such
year, and with the return for |
26 | | October, November and December of a given
year being due by |
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1 | | January 20 of the following year. |
2 | | If the retailer is otherwise required to file a monthly or |
3 | | quarterly
return and if the retailer's average monthly tax |
4 | | liability with the
Department does not exceed $50, the |
5 | | Department may authorize his returns to
be filed on an annual |
6 | | basis, with the return for a given year being due by
January 20 |
7 | | of the following year. |
8 | | Such quarter annual and annual returns, as to form and |
9 | | substance,
shall be subject to the same requirements as |
10 | | monthly returns. |
11 | | Notwithstanding any other provision in this Act concerning |
12 | | the time
within which a retailer may file his return, in the |
13 | | case of any retailer
who ceases to engage in a kind of business |
14 | | which makes him responsible
for filing returns under this Act, |
15 | | such retailer shall file a final
return under this Act with the |
16 | | Department not more than one month after
discontinuing such |
17 | | business. |
18 | | Where the same person has more than one business |
19 | | registered with the
Department under separate registrations |
20 | | under this Act, such person may
not file each return that is |
21 | | due as a single return covering all such
registered |
22 | | businesses, but shall file separate returns for each such
|
23 | | registered business. |
24 | | In addition, with respect to motor vehicles, watercraft,
|
25 | | aircraft, and trailers that are required to be registered with |
26 | | an agency of
this State, except as otherwise provided in this |
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1 | | Section, every
retailer selling this kind of tangible personal |
2 | | property shall file,
with the Department, upon a form to be |
3 | | prescribed and supplied by the
Department, a separate return |
4 | | for each such item of tangible personal
property which the |
5 | | retailer sells, except that if, in the same
transaction, (i) a |
6 | | retailer of aircraft, watercraft, motor vehicles or
trailers |
7 | | transfers more than one aircraft, watercraft, motor
vehicle or |
8 | | trailer to another aircraft, watercraft, motor vehicle
|
9 | | retailer or trailer retailer for the purpose of resale
or (ii) |
10 | | a retailer of aircraft, watercraft, motor vehicles, or |
11 | | trailers
transfers more than one aircraft, watercraft, motor |
12 | | vehicle, or trailer to a
purchaser for use as a qualifying |
13 | | rolling stock as provided in Section 2-5 of
this Act, then
that |
14 | | seller may report the transfer of all aircraft,
watercraft, |
15 | | motor vehicles or trailers involved in that transaction to the
|
16 | | Department on the same uniform invoice-transaction reporting |
17 | | return form. For
purposes of this Section, "watercraft" means |
18 | | a Class 2, Class 3, or Class 4
watercraft as defined in Section |
19 | | 3-2 of the Boat Registration and Safety Act, a
personal |
20 | | watercraft, or any boat equipped with an inboard motor. |
21 | | In addition, with respect to motor vehicles, watercraft, |
22 | | aircraft, and trailers that are required to be registered with |
23 | | an agency of this State, every person who is engaged in the |
24 | | business of leasing or renting such items and who, in |
25 | | connection with such business, sells any such item to a |
26 | | retailer for the purpose of resale is, notwithstanding any |
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1 | | other provision of this Section to the contrary, authorized to |
2 | | meet the return-filing requirement of this Act by reporting |
3 | | the transfer of all the aircraft, watercraft, motor vehicles, |
4 | | or trailers transferred for resale during a month to the |
5 | | Department on the same uniform invoice-transaction reporting |
6 | | return form on or before the 20th of the month following the |
7 | | month in which the transfer takes place. Notwithstanding any |
8 | | other provision of this Act to the contrary, all returns filed |
9 | | under this paragraph must be filed by electronic means in the |
10 | | manner and form as required by the Department. |
11 | | Any retailer who sells only motor vehicles, watercraft,
|
12 | | aircraft, or trailers that are required to be registered with |
13 | | an agency of
this State, so that all
retailers' occupation tax |
14 | | liability is required to be reported, and is
reported, on such |
15 | | transaction reporting returns and who is not otherwise
|
16 | | required to file monthly or quarterly returns, need not file |
17 | | monthly or
quarterly returns. However, those retailers shall |
18 | | be required to
file returns on an annual basis. |
19 | | The transaction reporting return, in the case of motor |
20 | | vehicles
or trailers that are required to be registered with |
21 | | an agency of this
State, shall
be the same document as the |
22 | | Uniform Invoice referred to in Section 5-402
of the Illinois |
23 | | Vehicle Code and must show the name and address of the
seller; |
24 | | the name and address of the purchaser; the amount of the |
25 | | selling
price including the amount allowed by the retailer for |
26 | | traded-in
property, if any; the amount allowed by the retailer |
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1 | | for the traded-in
tangible personal property, if any, to the |
2 | | extent to which Section 1 of
this Act allows an exemption for |
3 | | the value of traded-in property; the
balance payable after |
4 | | deducting such trade-in allowance from the total
selling |
5 | | price; the amount of tax due from the retailer with respect to
|
6 | | such transaction; the amount of tax collected from the |
7 | | purchaser by the
retailer on such transaction (or satisfactory |
8 | | evidence that such tax is
not due in that particular instance, |
9 | | if that is claimed to be the fact);
the place and date of the |
10 | | sale; a sufficient identification of the
property sold; such |
11 | | other information as is required in Section 5-402 of
the |
12 | | Illinois Vehicle Code, and such other information as the |
13 | | Department
may reasonably require. |
14 | | The transaction reporting return in the case of watercraft
|
15 | | or aircraft must show
the name and address of the seller; the |
16 | | name and address of the
purchaser; the amount of the selling |
17 | | price including the amount allowed
by the retailer for |
18 | | traded-in property, if any; the amount allowed by
the retailer |
19 | | for the traded-in tangible personal property, if any, to
the |
20 | | extent to which Section 1 of this Act allows an exemption for |
21 | | the
value of traded-in property; the balance payable after |
22 | | deducting such
trade-in allowance from the total selling |
23 | | price; the amount of tax due
from the retailer with respect to |
24 | | such transaction; the amount of tax
collected from the |
25 | | purchaser by the retailer on such transaction (or
satisfactory |
26 | | evidence that such tax is not due in that particular
instance, |
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1 | | if that is claimed to be the fact); the place and date of the
|
2 | | sale, a sufficient identification of the property sold, and |
3 | | such other
information as the Department may reasonably |
4 | | require. |
5 | | Such transaction reporting return shall be filed not later |
6 | | than 20
days after the day of delivery of the item that is |
7 | | being sold, but may
be filed by the retailer at any time sooner |
8 | | than that if he chooses to
do so. The transaction reporting |
9 | | return and tax remittance or proof of
exemption from the |
10 | | Illinois use tax may be transmitted to the Department
by way of |
11 | | the State agency with which, or State officer with whom the
|
12 | | tangible personal property must be titled or registered (if |
13 | | titling or
registration is required) if the Department and |
14 | | such agency or State
officer determine that this procedure |
15 | | will expedite the processing of
applications for title or |
16 | | registration. |
17 | | With each such transaction reporting return, the retailer |
18 | | shall remit
the proper amount of tax due (or shall submit |
19 | | satisfactory evidence that
the sale is not taxable if that is |
20 | | the case), to the Department or its
agents, whereupon the |
21 | | Department shall issue, in the purchaser's name, a
use tax |
22 | | receipt (or a certificate of exemption if the Department is
|
23 | | satisfied that the particular sale is tax exempt) which such |
24 | | purchaser
may submit to the agency with which, or State |
25 | | officer with whom, he must
title or register the tangible |
26 | | personal property that is involved (if
titling or registration |
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1 | | is required) in support of such purchaser's
application for an |
2 | | Illinois certificate or other evidence of title or
|
3 | | registration to such tangible personal property. |
4 | | No retailer's failure or refusal to remit tax under this |
5 | | Act
precludes a user, who has paid the proper tax to the |
6 | | retailer, from
obtaining his certificate of title or other |
7 | | evidence of title or
registration (if titling or registration |
8 | | is required) upon satisfying
the Department that such user has |
9 | | paid the proper tax (if tax is due) to
the retailer. The |
10 | | Department shall adopt appropriate rules to carry out
the |
11 | | mandate of this paragraph. |
12 | | If the user who would otherwise pay tax to the retailer |
13 | | wants the
transaction reporting return filed and the payment |
14 | | of the tax or proof
of exemption made to the Department before |
15 | | the retailer is willing to
take these actions and such user has |
16 | | not paid the tax to the retailer,
such user may certify to the |
17 | | fact of such delay by the retailer and may
(upon the Department |
18 | | being satisfied of the truth of such certification)
transmit |
19 | | the information required by the transaction reporting return
|
20 | | and the remittance for tax or proof of exemption directly to |
21 | | the
Department and obtain his tax receipt or exemption |
22 | | determination, in
which event the transaction reporting return |
23 | | and tax remittance (if a
tax payment was required) shall be |
24 | | credited by the Department to the
proper retailer's account |
25 | | with the Department, but without the 2.1% or 1.75%
discount |
26 | | provided for in this Section being allowed. When the user pays
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1 | | the tax directly to the Department, he shall pay the tax in the |
2 | | same
amount and in the same form in which it would be remitted |
3 | | if the tax had
been remitted to the Department by the retailer. |
4 | | Refunds made by the seller during the preceding return |
5 | | period to
purchasers, on account of tangible personal property |
6 | | returned to the
seller, shall be allowed as a deduction under |
7 | | subdivision 5 of his monthly
or quarterly return, as the case |
8 | | may be, in case the
seller had theretofore included the |
9 | | receipts from the sale of such
tangible personal property in a |
10 | | return filed by him and had paid the tax
imposed by this Act |
11 | | with respect to such receipts. |
12 | | Where the seller is a corporation, the return filed on |
13 | | behalf of such
corporation shall be signed by the president, |
14 | | vice-president, secretary
or treasurer or by the properly |
15 | | accredited agent of such corporation. |
16 | | Where the seller is a limited liability company, the |
17 | | return filed on behalf
of the limited liability company shall |
18 | | be signed by a manager, member, or
properly accredited agent |
19 | | of the limited liability company. |
20 | | Except as provided in this Section, the retailer filing |
21 | | the return
under this Section shall, at the time of filing such |
22 | | return, pay to the
Department the amount of tax imposed by this |
23 | | Act less a discount of 2.1%
prior to January 1, 1990 and 1.75% |
24 | | on and after January 1, 1990, or $5 per
calendar year, |
25 | | whichever is greater, which is allowed to
reimburse the |
26 | | retailer for the expenses incurred in keeping records,
|
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1 | | preparing and filing returns, remitting the tax and supplying |
2 | | data to
the Department on request. On and after January 1, |
3 | | 2021, a certified service provider, as defined in the Leveling |
4 | | the Playing Field for Illinois Retail Act, filing the return |
5 | | under this Section on behalf of a remote retailer shall, at the |
6 | | time of such return, pay to the Department the amount of tax |
7 | | imposed by this Act less a discount of 1.75%. A remote retailer |
8 | | using a certified service provider to file a return on its |
9 | | behalf, as provided in the Leveling the Playing Field for |
10 | | Illinois Retail Act, is not eligible for the discount. When |
11 | | determining the discount allowed under this Section, retailers |
12 | | shall include the amount of tax that would have been due at the |
13 | | 1% rate but for the 0% rate imposed under Public Act 102-700 |
14 | | this amendatory Act of the 102nd General Assembly . When |
15 | | determining the discount allowed under this Section, retailers |
16 | | shall include the amount of tax that would have been due at the |
17 | | 6.25% rate but for the 1.25% rate imposed on sales tax holiday |
18 | | items under Public Act 102-700 this amendatory Act of the |
19 | | 102nd General Assembly . The discount under this Section is not |
20 | | allowed for the 1.25% portion of taxes paid on aviation fuel |
21 | | that is subject to the revenue use requirements of 49 U.S.C. |
22 | | 47107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to |
23 | | Section 2d
of this Act shall be included in the amount on which |
24 | | such
2.1% or 1.75% discount is computed. In the case of |
25 | | retailers who report
and pay the tax on a transaction by |
26 | | transaction basis, as provided in this
Section, such discount |
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1 | | shall be taken with each such tax remittance
instead of when |
2 | | such retailer files his periodic return. The discount allowed |
3 | | under this Section is allowed only for returns that are filed |
4 | | in the manner required by this Act. The Department may |
5 | | disallow the discount for retailers whose certificate of |
6 | | registration is revoked at the time the return is filed, but |
7 | | only if the Department's decision to revoke the certificate of |
8 | | registration has become final. |
9 | | Before October 1, 2000, if the taxpayer's average monthly |
10 | | tax liability
to the Department
under this Act, the Use Tax |
11 | | Act, the Service Occupation Tax
Act, and the Service Use Tax |
12 | | Act, excluding any liability for prepaid sales
tax to be |
13 | | remitted in accordance with Section 2d of this Act, was
|
14 | | $10,000
or more during the preceding 4 complete calendar |
15 | | quarters, he shall file a
return with the Department each |
16 | | month by the 20th day of the month next
following the month |
17 | | during which such tax liability is incurred and shall
make |
18 | | payments to the Department on or before the 7th, 15th, 22nd and |
19 | | last
day of the month during which such liability is incurred.
|
20 | | On and after October 1, 2000, if the taxpayer's average |
21 | | monthly tax liability
to the Department under this Act, the |
22 | | Use Tax Act, the Service Occupation Tax
Act, and the Service |
23 | | Use Tax Act, excluding any liability for prepaid sales tax
to |
24 | | be remitted in accordance with Section 2d of this Act, was |
25 | | $20,000 or more
during the preceding 4 complete calendar |
26 | | quarters, he shall file a return with
the Department each |
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1 | | month by the 20th day of the month next following the month
|
2 | | during which such tax liability is incurred and shall make |
3 | | payment to the
Department on or before the 7th, 15th, 22nd and |
4 | | last day of the month during
which such liability is incurred.
|
5 | | If the month
during which such tax liability is incurred began |
6 | | prior to January 1, 1985,
each payment shall be in an amount |
7 | | equal to 1/4 of the taxpayer's actual
liability for the month |
8 | | or an amount set by the Department not to exceed
1/4 of the |
9 | | average monthly liability of the taxpayer to the Department |
10 | | for
the preceding 4 complete calendar quarters (excluding the |
11 | | month of highest
liability and the month of lowest liability |
12 | | in such 4 quarter period). If
the month during which such tax |
13 | | liability is incurred begins on or after
January 1, 1985 and |
14 | | prior to January 1, 1987, each payment shall be in an
amount |
15 | | equal to 22.5% of the taxpayer's actual liability for the |
16 | | month or
27.5% of the taxpayer's liability for the same |
17 | | calendar
month of the preceding year. If the month during |
18 | | which such tax
liability is incurred begins on or after |
19 | | January 1, 1987 and prior to
January 1, 1988, each payment |
20 | | shall be in an amount equal to 22.5% of the
taxpayer's actual |
21 | | liability for the month or 26.25% of the taxpayer's
liability |
22 | | for the same calendar month of the preceding year. If the month
|
23 | | during which such tax liability is incurred begins on or after |
24 | | January 1,
1988, and prior to January 1, 1989, or begins on or |
25 | | after January 1, 1996, each
payment shall be in an amount
equal |
26 | | to 22.5% of the taxpayer's actual liability for the month or |
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1 | | 25% of
the taxpayer's liability for the same calendar month of |
2 | | the preceding year. If
the month during which such tax |
3 | | liability is incurred begins on or after
January 1, 1989, and |
4 | | prior to January 1, 1996, each payment shall be in an
amount |
5 | | equal to 22.5% of the
taxpayer's actual liability for the |
6 | | month or 25% of the taxpayer's
liability for the same calendar |
7 | | month of the preceding year or 100% of the
taxpayer's actual |
8 | | liability for the quarter monthly reporting period. The
amount |
9 | | of such quarter monthly payments shall be credited against
the |
10 | | final tax liability of the taxpayer's return for that month. |
11 | | Before
October 1, 2000, once
applicable, the requirement of |
12 | | the making of quarter monthly payments to
the Department by |
13 | | taxpayers having an average monthly tax liability of
$10,000 |
14 | | or more as determined in the manner provided above
shall |
15 | | continue
until such taxpayer's average monthly liability to |
16 | | the Department during
the preceding 4 complete calendar |
17 | | quarters (excluding the month of highest
liability and the |
18 | | month of lowest liability) is less than
$9,000, or until
such |
19 | | taxpayer's average monthly liability to the Department as |
20 | | computed for
each calendar quarter of the 4 preceding complete |
21 | | calendar quarter period
is less than $10,000. However, if a |
22 | | taxpayer can show the
Department that
a substantial change in |
23 | | the taxpayer's business has occurred which causes
the taxpayer |
24 | | to anticipate that his average monthly tax liability for the
|
25 | | reasonably foreseeable future will fall below the $10,000 |
26 | | threshold
stated above, then
such taxpayer
may petition the |
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1 | | Department for a change in such taxpayer's reporting
status. |
2 | | On and after October 1, 2000, once applicable, the requirement |
3 | | of
the making of quarter monthly payments to the Department by |
4 | | taxpayers having an
average monthly tax liability of $20,000 |
5 | | or more as determined in the manner
provided above shall |
6 | | continue until such taxpayer's average monthly liability
to |
7 | | the Department during the preceding 4 complete calendar |
8 | | quarters (excluding
the month of highest liability and the |
9 | | month of lowest liability) is less than
$19,000 or until such |
10 | | taxpayer's average monthly liability to the Department as
|
11 | | computed for each calendar quarter of the 4 preceding complete |
12 | | calendar quarter
period is less than $20,000. However, if a |
13 | | taxpayer can show the Department
that a substantial change in |
14 | | the taxpayer's business has occurred which causes
the taxpayer |
15 | | to anticipate that his average monthly tax liability for the
|
16 | | reasonably foreseeable future will fall below the $20,000 |
17 | | threshold stated
above, then such taxpayer may petition the |
18 | | Department for a change in such
taxpayer's reporting status. |
19 | | The Department shall change such taxpayer's
reporting status
|
20 | | unless it finds that such change is seasonal in nature and not |
21 | | likely to be
long term. Quarter monthly payment status shall |
22 | | be determined under this paragraph as if the rate reduction to |
23 | | 0% in Public Act 102-700 this amendatory Act of the 102nd |
24 | | General Assembly on food for human consumption that is to be |
25 | | consumed off the premises where it is sold (other than |
26 | | alcoholic beverages, food consisting of or infused with adult |
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1 | | use cannabis, soft drinks, and food that has been prepared for |
2 | | immediate consumption) had not occurred. For quarter monthly |
3 | | payments due under this paragraph on or after July 1, 2023 and |
4 | | through June 30, 2024, "25% of the taxpayer's liability for |
5 | | the same calendar month of the preceding year" shall be |
6 | | determined as if the rate reduction to 0% in Public Act 102-700 |
7 | | this amendatory Act of the 102nd General Assembly had not |
8 | | occurred. Quarter monthly payment status shall be determined |
9 | | under this paragraph as if the rate reduction to 1.25% in |
10 | | Public Act 102-700 this amendatory Act of the 102nd General |
11 | | Assembly on sales tax holiday items had not occurred. For |
12 | | quarter monthly payments due on or after July 1, 2023 and |
13 | | through June 30, 2024, "25% of the taxpayer's liability for |
14 | | the same calendar month of the preceding year" shall be |
15 | | determined as if the rate reduction to 1.25% in Public Act |
16 | | 102-700 this amendatory Act of the 102nd General Assembly on |
17 | | sales tax holiday items had not occurred. If any such quarter |
18 | | monthly payment is not paid at the time or
in the amount |
19 | | required by this Section, then the taxpayer shall be liable |
20 | | for
penalties and interest on the difference
between the |
21 | | minimum amount due as a payment and the amount of such quarter
|
22 | | monthly payment actually and timely paid, except insofar as |
23 | | the
taxpayer has previously made payments for that month to |
24 | | the Department in
excess of the minimum payments previously |
25 | | due as provided in this Section.
The Department shall make |
26 | | reasonable rules and regulations to govern the
quarter monthly |
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1 | | payment amount and quarter monthly payment dates for
taxpayers |
2 | | who file on other than a calendar monthly basis. |
3 | | The provisions of this paragraph apply before October 1, |
4 | | 2001.
Without regard to whether a taxpayer is required to make |
5 | | quarter monthly
payments as specified above, any taxpayer who |
6 | | is required by Section 2d
of this Act to collect and remit |
7 | | prepaid taxes and has collected prepaid
taxes which average in |
8 | | excess of $25,000 per month during the preceding
2 complete |
9 | | calendar quarters, shall file a return with the Department as
|
10 | | required by Section 2f and shall make payments to the |
11 | | Department on or before
the 7th, 15th, 22nd and last day of the |
12 | | month during which such liability
is incurred. If the month |
13 | | during which such tax liability is incurred
began prior to |
14 | | September 1, 1985 (the effective date of Public Act 84-221), |
15 | | each
payment shall be in an amount not less than 22.5% of the |
16 | | taxpayer's actual
liability under Section 2d. If the month |
17 | | during which such tax liability
is incurred begins on or after |
18 | | January 1, 1986, each payment shall be in an
amount equal to |
19 | | 22.5% of the taxpayer's actual liability for the month or
|
20 | | 27.5% of the taxpayer's liability for the same calendar month |
21 | | of the
preceding calendar year. If the month during which such |
22 | | tax liability is
incurred begins on or after January 1, 1987, |
23 | | each payment shall be in an
amount equal to 22.5% of the |
24 | | taxpayer's actual liability for the month or
26.25% of the |
25 | | taxpayer's liability for the same calendar month of the
|
26 | | preceding year. The amount of such quarter monthly payments |
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1 | | shall be
credited against the final tax liability of the |
2 | | taxpayer's return for that
month filed under this Section or |
3 | | Section 2f, as the case may be. Once
applicable, the |
4 | | requirement of the making of quarter monthly payments to
the |
5 | | Department pursuant to this paragraph shall continue until |
6 | | such
taxpayer's average monthly prepaid tax collections during |
7 | | the preceding 2
complete calendar quarters is $25,000 or less. |
8 | | If any such quarter monthly
payment is not paid at the time or |
9 | | in the amount required, the taxpayer
shall be liable for |
10 | | penalties and interest on such difference, except
insofar as |
11 | | the taxpayer has previously made payments for that month in
|
12 | | excess of the minimum payments previously due. |
13 | | The provisions of this paragraph apply on and after |
14 | | October 1, 2001.
Without regard to whether a taxpayer is |
15 | | required to make quarter monthly
payments as specified above, |
16 | | any taxpayer who is required by Section 2d of this
Act to |
17 | | collect and remit prepaid taxes and has collected prepaid |
18 | | taxes that
average in excess of $20,000 per month during the |
19 | | preceding 4 complete calendar
quarters shall file a return |
20 | | with the Department as required by Section 2f
and shall make |
21 | | payments to the Department on or before the 7th, 15th, 22nd and
|
22 | | last day of the month during which the liability is incurred. |
23 | | Each payment
shall be in an amount equal to 22.5% of the |
24 | | taxpayer's actual liability for the
month or 25% of the |
25 | | taxpayer's liability for the same calendar month of the
|
26 | | preceding year. The amount of the quarter monthly payments |
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1 | | shall be credited
against the final tax liability of the |
2 | | taxpayer's return for that month filed
under this Section or |
3 | | Section 2f, as the case may be. Once applicable, the
|
4 | | requirement of the making of quarter monthly payments to the |
5 | | Department
pursuant to this paragraph shall continue until the |
6 | | taxpayer's average monthly
prepaid tax collections during the |
7 | | preceding 4 complete calendar quarters
(excluding the month of |
8 | | highest liability and the month of lowest liability) is
less |
9 | | than $19,000 or until such taxpayer's average monthly |
10 | | liability to the
Department as computed for each calendar |
11 | | quarter of the 4 preceding complete
calendar quarters is less |
12 | | than $20,000. If any such quarter monthly payment is
not paid |
13 | | at the time or in the amount required, the taxpayer shall be |
14 | | liable
for penalties and interest on such difference, except |
15 | | insofar as the taxpayer
has previously made payments for that |
16 | | month in excess of the minimum payments
previously due. |
17 | | If any payment provided for in this Section exceeds
the |
18 | | taxpayer's liabilities under this Act, the Use Tax Act, the |
19 | | Service
Occupation Tax Act and the Service Use Tax Act, as |
20 | | shown on an original
monthly return, the Department shall, if |
21 | | requested by the taxpayer, issue to
the taxpayer a credit |
22 | | memorandum no later than 30 days after the date of
payment. The |
23 | | credit evidenced by such credit memorandum may
be assigned by |
24 | | the taxpayer to a similar taxpayer under this Act, the
Use Tax |
25 | | Act, the Service Occupation Tax Act or the Service Use Tax Act, |
26 | | in
accordance with reasonable rules and regulations to be |
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1 | | prescribed by the
Department. If no such request is made, the |
2 | | taxpayer may credit such excess
payment against tax liability |
3 | | subsequently to be remitted to the Department
under this Act, |
4 | | the Use Tax Act, the Service Occupation Tax Act or the
Service |
5 | | Use Tax Act, in accordance with reasonable rules and |
6 | | regulations
prescribed by the Department. If the Department |
7 | | subsequently determined
that all or any part of the credit |
8 | | taken was not actually due to the
taxpayer, the taxpayer's |
9 | | 2.1% and 1.75% vendor's discount shall be reduced
by 2.1% or |
10 | | 1.75% of the difference between the credit taken and that
|
11 | | actually due, and that taxpayer shall be liable for penalties |
12 | | and interest
on such difference. |
13 | | If a retailer of motor fuel is entitled to a credit under |
14 | | Section 2d of
this Act which exceeds the taxpayer's liability |
15 | | to the Department under
this Act for the month for which the |
16 | | taxpayer is filing a return, the
Department shall issue the |
17 | | taxpayer a credit memorandum for the excess. |
18 | | Beginning January 1, 1990, each month the Department shall |
19 | | pay into
the Local Government Tax Fund, a special fund in the |
20 | | State treasury which
is hereby created, the net revenue |
21 | | realized for the preceding month from
the 1% tax imposed under |
22 | | this Act. |
23 | | Beginning January 1, 1990, each month the Department shall |
24 | | pay into
the County and Mass Transit District Fund, a special |
25 | | fund in the State
treasury which is hereby created, 4% of the |
26 | | net revenue realized
for the preceding month from the 6.25% |
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1 | | general rate other than aviation fuel sold on or after |
2 | | December 1, 2019. This exception for aviation fuel only |
3 | | applies for so long as the revenue use requirements of 49 |
4 | | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State. |
5 | | Beginning August 1, 2000, each
month the Department shall |
6 | | pay into the
County and Mass Transit District Fund 20% of the |
7 | | net revenue realized for the
preceding month from the 1.25% |
8 | | rate on the selling price of motor fuel and
gasohol. If, in any |
9 | | month, the tax on sales tax holiday items, as defined in |
10 | | Section 2-8, is imposed at the rate of 1.25%, then the |
11 | | Department shall pay 20% of the net revenue realized for that |
12 | | month from the 1.25% rate on the selling price of sales tax |
13 | | holiday items into the County and Mass Transit District Fund. |
14 | | Beginning January 1, 1990, each month the Department shall |
15 | | pay into
the Local Government Tax Fund 16% of the net revenue |
16 | | realized for the
preceding month from the 6.25% general rate |
17 | | on the selling price of
tangible personal property other than |
18 | | aviation fuel sold on or after December 1, 2019. This |
19 | | exception for aviation fuel only applies for so long as the |
20 | | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. |
21 | | 47133 are binding on the State. |
22 | | For aviation fuel sold on or after December 1, 2019, each |
23 | | month the Department shall pay into the State Aviation Program |
24 | | Fund 20% of the net revenue realized for the preceding month |
25 | | from the 6.25% general rate on the selling price of aviation |
26 | | fuel, less an amount estimated by the Department to be |
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1 | | required for refunds of the 20% portion of the tax on aviation |
2 | | fuel under this Act, which amount shall be deposited into the |
3 | | Aviation Fuel Sales Tax Refund Fund. The Department shall only |
4 | | pay moneys into the State Aviation Program Fund and the |
5 | | Aviation Fuel Sales Tax Refund Fund under this Act for so long |
6 | | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 |
7 | | U.S.C. 47133 are binding on the State. |
8 | | Beginning August 1, 2000, each
month the Department shall |
9 | | pay into the
Local Government Tax Fund 80% of the net revenue |
10 | | realized for the preceding
month from the 1.25% rate on the |
11 | | selling price of motor fuel and gasohol. If, in any month, the |
12 | | tax on sales tax holiday items, as defined in Section 2-8, is |
13 | | imposed at the rate of 1.25%, then the Department shall pay 80% |
14 | | of the net revenue realized for that month from the 1.25% rate |
15 | | on the selling price of sales tax holiday items into the Local |
16 | | Government Tax Fund. |
17 | | Beginning October 1, 2009, each month the Department shall |
18 | | pay into the Capital Projects Fund an amount that is equal to |
19 | | an amount estimated by the Department to represent 80% of the |
20 | | net revenue realized for the preceding month from the sale of |
21 | | candy, grooming and hygiene products, and soft drinks that had |
22 | | been taxed at a rate of 1% prior to September 1, 2009 but that |
23 | | are now taxed at 6.25%. |
24 | | Beginning July 1, 2011, each
month the Department shall |
25 | | pay into the Clean Air Act Permit Fund 80% of the net revenue |
26 | | realized for the
preceding month from the 6.25% general rate |
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1 | | on the selling price of sorbents used in Illinois in the |
2 | | process of sorbent injection as used to comply with the |
3 | | Environmental Protection Act or the federal Clean Air Act, but |
4 | | the total payment into the Clean Air Act Permit Fund under this |
5 | | Act and the Use Tax Act shall not exceed $2,000,000 in any |
6 | | fiscal year. |
7 | | Beginning July 1, 2013, each month the Department shall |
8 | | pay into the Underground Storage Tank Fund from the proceeds |
9 | | collected under this Act, the Use Tax Act, the Service Use Tax |
10 | | Act, and the Service Occupation Tax Act an amount equal to the |
11 | | average monthly deficit in the Underground Storage Tank Fund |
12 | | during the prior year, as certified annually by the Illinois |
13 | | Environmental Protection Agency, but the total payment into |
14 | | the Underground Storage Tank Fund under this Act, the Use Tax |
15 | | Act, the Service Use Tax Act, and the Service Occupation Tax |
16 | | Act shall not exceed $18,000,000 in any State fiscal year. As |
17 | | used in this paragraph, the "average monthly deficit" shall be |
18 | | equal to the difference between the average monthly claims for |
19 | | payment by the fund and the average monthly revenues deposited |
20 | | into the fund, excluding payments made pursuant to this |
21 | | paragraph. |
22 | | Beginning July 1, 2015, of the remainder of the moneys |
23 | | received by the Department under the Use Tax Act, the Service |
24 | | Use Tax Act, the Service Occupation Tax Act, and this Act, each |
25 | | month the Department shall deposit $500,000 into the State |
26 | | Crime Laboratory Fund. |
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1 | | Of the remainder of the moneys received by the Department |
2 | | pursuant
to this Act, (a) 1.75% thereof shall be paid into the |
3 | | Build Illinois
Fund and (b) prior to July 1, 1989, 2.2% and on |
4 | | and after July 1, 1989,
3.8% thereof shall be paid into the |
5 | | Build Illinois Fund; provided, however,
that if in any fiscal |
6 | | year the sum of (1) the aggregate of 2.2% or 3.8%, as
the case |
7 | | may be, of the moneys received by the Department and required |
8 | | to
be paid into the Build Illinois Fund pursuant to this Act, |
9 | | Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax |
10 | | Act, and Section 9 of the
Service Occupation Tax Act, such Acts |
11 | | being hereinafter called the "Tax
Acts" and such aggregate of |
12 | | 2.2% or 3.8%, as the case may be, of moneys
being hereinafter |
13 | | called the "Tax Act Amount", and (2) the amount
transferred to |
14 | | the Build Illinois Fund from the State and Local Sales Tax
|
15 | | Reform Fund shall be less than the Annual Specified Amount (as |
16 | | hereinafter
defined), an amount equal to the difference shall |
17 | | be immediately paid into
the Build Illinois Fund from other |
18 | | moneys received by the Department
pursuant to the Tax Acts; |
19 | | the "Annual Specified Amount" means the amounts
specified |
20 | | below for fiscal years 1986 through 1993: |
|
21 | | Fiscal Year | Annual Specified Amount | |
22 | | 1986 | $54,800,000 | |
23 | | 1987 | $76,650,000 | |
24 | | 1988 | $80,480,000 | |
25 | | 1989 | $88,510,000 | |
26 | | 1990 | $115,330,000 | |
|
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1 | | 1991 | $145,470,000 | |
2 | | 1992 | $182,730,000 | |
3 | | 1993 | $206,520,000; |
|
4 | | and means the Certified Annual Debt Service Requirement (as |
5 | | defined in
Section 13 of the Build Illinois Bond Act) or the |
6 | | Tax Act Amount, whichever
is greater, for fiscal year 1994 and |
7 | | each fiscal year thereafter; and
further provided, that if on |
8 | | the last business day of any month the sum of
(1) the Tax Act |
9 | | Amount required to be deposited into the Build Illinois
Bond |
10 | | Account in the Build Illinois Fund during such month and (2) |
11 | | the
amount transferred to the Build Illinois Fund from the |
12 | | State and Local
Sales Tax Reform Fund shall have been less than |
13 | | 1/12 of the Annual
Specified Amount, an amount equal to the |
14 | | difference shall be immediately
paid into the Build Illinois |
15 | | Fund from other moneys received by the
Department pursuant to |
16 | | the Tax Acts; and, further provided, that in no
event shall the |
17 | | payments required under the preceding proviso result in
|
18 | | aggregate payments into the Build Illinois Fund pursuant to |
19 | | this clause (b)
for any fiscal year in excess of the greater of |
20 | | (i) the Tax Act Amount or
(ii) the Annual Specified Amount for |
21 | | such fiscal year. The amounts payable
into the Build Illinois |
22 | | Fund under clause (b) of the first sentence in this
paragraph |
23 | | shall be payable only until such time as the aggregate amount |
24 | | on
deposit under each trust indenture securing Bonds issued |
25 | | and outstanding
pursuant to the Build Illinois Bond Act is |
26 | | sufficient, taking into account
any future investment income, |
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1 | | to fully provide, in accordance with such
indenture, for the |
2 | | defeasance of or the payment of the principal of,
premium, if |
3 | | any, and interest on the Bonds secured by such indenture and on
|
4 | | any Bonds expected to be issued thereafter and all fees and |
5 | | costs payable
with respect thereto, all as certified by the |
6 | | Director of the Bureau of the
Budget (now Governor's Office of |
7 | | Management and Budget). If on the last
business day of any |
8 | | month in which Bonds are
outstanding pursuant to the Build |
9 | | Illinois Bond Act, the aggregate of
moneys deposited in the |
10 | | Build Illinois Bond Account in the Build Illinois
Fund in such |
11 | | month shall be less than the amount required to be transferred
|
12 | | in such month from the Build Illinois Bond Account to the Build |
13 | | Illinois
Bond Retirement and Interest Fund pursuant to Section |
14 | | 13 of the Build
Illinois Bond Act, an amount equal to such |
15 | | deficiency shall be immediately
paid from other moneys |
16 | | received by the Department pursuant to the Tax Acts
to the |
17 | | Build Illinois Fund; provided, however, that any amounts paid |
18 | | to the
Build Illinois Fund in any fiscal year pursuant to this |
19 | | sentence shall be
deemed to constitute payments pursuant to |
20 | | clause (b) of the first sentence
of this paragraph and shall |
21 | | reduce the amount otherwise payable for such
fiscal year |
22 | | pursuant to that clause (b). The moneys received by the
|
23 | | Department pursuant to this Act and required to be deposited |
24 | | into the Build
Illinois Fund are subject to the pledge, claim |
25 | | and charge set forth in
Section 12 of the Build Illinois Bond |
26 | | Act. |
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1 | | Subject to payment of amounts into the Build Illinois Fund |
2 | | as provided in
the preceding paragraph or in any amendment |
3 | | thereto hereafter enacted, the
following specified monthly |
4 | | installment of the amount requested in the
certificate of the |
5 | | Chairman of the Metropolitan Pier and Exposition
Authority |
6 | | provided under Section 8.25f of the State Finance Act, but not |
7 | | in
excess of sums designated as "Total Deposit", shall be |
8 | | deposited in the
aggregate from collections under Section 9 of |
9 | | the Use Tax Act, Section 9 of
the Service Use Tax Act, Section |
10 | | 9 of the Service Occupation Tax Act, and
Section 3 of the |
11 | | Retailers' Occupation Tax Act into the McCormick Place
|
12 | | Expansion Project Fund in the specified fiscal years. |
|
13 | | Fiscal Year | | Total Deposit | |
14 | | 1993 | | $0 | |
15 | | 1994 | | 53,000,000 | |
16 | | 1995 | | 58,000,000 | |
17 | | 1996 | | 61,000,000 | |
18 | | 1997 | | 64,000,000 | |
19 | | 1998 | | 68,000,000 | |
20 | | 1999 | | 71,000,000 | |
21 | | 2000 | | 75,000,000 | |
22 | | 2001 | | 80,000,000 | |
23 | | 2002 | | 93,000,000 | |
24 | | 2003 | | 99,000,000 | |
25 | | 2004 | | 103,000,000 | |
26 | | 2005 | | 108,000,000 | |
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1 | | 2006 | | 113,000,000 | |
2 | | 2007 | | 119,000,000 | |
3 | | 2008 | | 126,000,000 | |
4 | | 2009 | | 132,000,000 | |
5 | | 2010 | | 139,000,000 | |
6 | | 2011 | | 146,000,000 | |
7 | | 2012 | | 153,000,000 | |
8 | | 2013 | | 161,000,000 | |
9 | | 2014 | | 170,000,000 | |
10 | | 2015 | | 179,000,000 | |
11 | | 2016 | | 189,000,000 | |
12 | | 2017 | | 199,000,000 | |
13 | | 2018 | | 210,000,000 | |
14 | | 2019 | | 221,000,000 | |
15 | | 2020 | | 233,000,000 | |
16 | | 2021 | | 300,000,000 | |
17 | | 2022 | | 300,000,000 | |
18 | | 2023 | | 300,000,000 | |
19 | | 2024 | | 300,000,000 | |
20 | | 2025 | | 300,000,000 | |
21 | | 2026 | | 300,000,000 | |
22 | | 2027 | | 375,000,000 | |
23 | | 2028 | | 375,000,000 | |
24 | | 2029 | | 375,000,000 | |
25 | | 2030 | | 375,000,000 | |
26 | | 2031 | | 375,000,000 | |
|
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1 | | 2032 | | 375,000,000 | |
2 | | 2033 | | 375,000,000 | |
3 | | 2034 | | 375,000,000 | |
4 | | 2035 | | 375,000,000 | |
5 | | 2036 | | 450,000,000 | |
6 | | and | | |
|
7 | | each fiscal year | | |
|
8 | | thereafter that bonds | | |
|
9 | | are outstanding under | | |
|
10 | | Section 13.2 of the | | |
|
11 | | Metropolitan Pier and | | |
|
12 | | Exposition Authority Act, | | |
|
13 | | but not after fiscal year 2060. | | |
|
14 | | Beginning July 20, 1993 and in each month of each fiscal |
15 | | year thereafter,
one-eighth of the amount requested in the |
16 | | certificate of the Chairman of
the Metropolitan Pier and |
17 | | Exposition Authority for that fiscal year, less
the amount |
18 | | deposited into the McCormick Place Expansion Project Fund by |
19 | | the
State Treasurer in the respective month under subsection |
20 | | (g) of Section 13
of the Metropolitan Pier and Exposition |
21 | | Authority Act, plus cumulative
deficiencies in the deposits |
22 | | required under this Section for previous
months and years, |
23 | | shall be deposited into the McCormick Place Expansion
Project |
24 | | Fund, until the full amount requested for the fiscal year, but |
25 | | not
in excess of the amount specified above as "Total |
26 | | Deposit", has been deposited. |
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1 | | Subject to payment of amounts into the Capital Projects |
2 | | Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, |
3 | | and the McCormick Place Expansion Project Fund pursuant to the |
4 | | preceding paragraphs or in any amendments thereto hereafter |
5 | | enacted, for aviation fuel sold on or after December 1, 2019, |
6 | | the Department shall each month deposit into the Aviation Fuel |
7 | | Sales Tax Refund Fund an amount estimated by the Department to |
8 | | be required for refunds of the 80% portion of the tax on |
9 | | aviation fuel under this Act. The Department shall only |
10 | | deposit moneys into the Aviation Fuel Sales Tax Refund Fund |
11 | | under this paragraph for so long as the revenue use |
12 | | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are |
13 | | binding on the State. |
14 | | Subject to payment of amounts into the Build Illinois Fund |
15 | | and the
McCormick Place Expansion Project Fund pursuant to the |
16 | | preceding paragraphs
or in any amendments
thereto hereafter |
17 | | enacted, beginning July 1, 1993 and ending on September 30, |
18 | | 2013, the Department shall each
month pay into the Illinois |
19 | | Tax Increment Fund 0.27% of 80% of the net revenue
realized for |
20 | | the preceding month from the 6.25% general rate on the selling
|
21 | | price of tangible personal property. |
22 | | Subject to payment of amounts into the Build Illinois Fund |
23 | | and the
McCormick Place Expansion Project Fund pursuant to the |
24 | | preceding paragraphs or in any
amendments thereto hereafter |
25 | | enacted, beginning with the receipt of the first
report of |
26 | | taxes paid by an eligible business and continuing for a |
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1 | | 25-year
period, the Department shall each month pay into the |
2 | | Energy Infrastructure
Fund 80% of the net revenue realized |
3 | | from the 6.25% general rate on the
selling price of |
4 | | Illinois-mined coal that was sold to an eligible business.
For |
5 | | purposes of this paragraph, the term "eligible business" means |
6 | | a new
electric generating facility certified pursuant to |
7 | | Section 605-332 of the
Department of Commerce and Economic |
8 | | Opportunity
Law of the Civil Administrative Code of Illinois. |
9 | | Subject to payment of amounts into the Build Illinois |
10 | | Fund, the McCormick Place Expansion Project Fund, the Illinois |
11 | | Tax Increment Fund, and the Energy Infrastructure Fund |
12 | | pursuant to the preceding paragraphs or in any amendments to |
13 | | this Section hereafter enacted, beginning on the first day of |
14 | | the first calendar month to occur on or after August 26, 2014 |
15 | | (the effective date of Public Act 98-1098), each month, from |
16 | | the collections made under Section 9 of the Use Tax Act, |
17 | | Section 9 of the Service Use Tax Act, Section 9 of the Service |
18 | | Occupation Tax Act, and Section 3 of the Retailers' Occupation |
19 | | Tax Act, the Department shall pay into the Tax Compliance and |
20 | | Administration Fund, to be used, subject to appropriation, to |
21 | | fund additional auditors and compliance personnel at the |
22 | | Department of Revenue, an amount equal to 1/12 of 5% of 80% of |
23 | | the cash receipts collected during the preceding fiscal year |
24 | | by the Audit Bureau of the Department under the Use Tax Act, |
25 | | the Service Use Tax Act, the Service Occupation Tax Act, the |
26 | | Retailers' Occupation Tax Act, and associated local occupation |
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1 | | and use taxes administered by the Department. |
2 | | Subject to payments of amounts into the Build Illinois |
3 | | Fund, the McCormick Place Expansion Project Fund, the Illinois |
4 | | Tax Increment Fund, the Energy Infrastructure Fund, and the |
5 | | Tax Compliance and Administration Fund as provided in this |
6 | | Section, beginning on July 1, 2018 the Department shall pay |
7 | | each month into the Downstate Public Transportation Fund the |
8 | | moneys required to be so paid under Section 2-3 of the |
9 | | Downstate Public Transportation Act. |
10 | | Subject to successful execution and delivery of a |
11 | | public-private agreement between the public agency and private |
12 | | entity and completion of the civic build, beginning on July 1, |
13 | | 2023, of the remainder of the moneys received by the |
14 | | Department under the Use Tax Act, the Service Use Tax Act, the |
15 | | Service Occupation Tax Act, and this Act, the Department shall |
16 | | deposit the following specified deposits in the aggregate from |
17 | | collections under the Use Tax Act, the Service Use Tax Act, the |
18 | | Service Occupation Tax Act, and the Retailers' Occupation Tax |
19 | | Act, as required under Section 8.25g of the State Finance Act |
20 | | for distribution consistent with the Public-Private |
21 | | Partnership for Civic and Transit Infrastructure Project Act. |
22 | | The moneys received by the Department pursuant to this Act and |
23 | | required to be deposited into the Civic and Transit |
24 | | Infrastructure Fund are subject to the pledge, claim and |
25 | | charge set forth in Section 25-55 of the Public-Private |
26 | | Partnership for Civic and Transit Infrastructure Project Act. |
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1 | | As used in this paragraph, "civic build", "private entity", |
2 | | "public-private agreement", and "public agency" have the |
3 | | meanings provided in Section 25-10 of the Public-Private |
4 | | Partnership for Civic and Transit Infrastructure Project Act. |
5 | | Fiscal Year .............................Total Deposit |
6 | | 2024 .....................................$200,000,000 |
7 | | 2025 ....................................$206,000,000 |
8 | | 2026 ....................................$212,200,000 |
9 | | 2027 ....................................$218,500,000 |
10 | | 2028 ....................................$225,100,000 |
11 | | 2029 ....................................$288,700,000 |
12 | | 2030 ....................................$298,900,000 |
13 | | 2031 ....................................$309,300,000 |
14 | | 2032 ....................................$320,100,000 |
15 | | 2033 ....................................$331,200,000 |
16 | | 2034 ....................................$341,200,000 |
17 | | 2035 ....................................$351,400,000 |
18 | | 2036 ....................................$361,900,000 |
19 | | 2037 ....................................$372,800,000 |
20 | | 2038 ....................................$384,000,000 |
21 | | 2039 ....................................$395,500,000 |
22 | | 2040 ....................................$407,400,000 |
23 | | 2041 ....................................$419,600,000 |
24 | | 2042 ....................................$432,200,000 |
25 | | 2043 ....................................$445,100,000 |
26 | | Beginning July 1, 2021 and until July 1, 2022, subject to |
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1 | | the payment of amounts into the County and Mass Transit |
2 | | District Fund, the Local Government Tax Fund, the Build |
3 | | Illinois Fund, the McCormick Place Expansion Project Fund, the |
4 | | Illinois Tax Increment Fund, the Energy Infrastructure Fund, |
5 | | and the Tax Compliance and Administration Fund as provided in |
6 | | this Section, the Department shall pay each month into the |
7 | | Road Fund the amount estimated to represent 16% of the net |
8 | | revenue realized from the taxes imposed on motor fuel and |
9 | | gasohol. Beginning July 1, 2022 and until July 1, 2023, |
10 | | subject to the payment of amounts into the County and Mass |
11 | | Transit District Fund, the Local Government Tax Fund, the |
12 | | Build Illinois Fund, the McCormick Place Expansion Project |
13 | | Fund, the Illinois Tax Increment Fund, the Energy |
14 | | Infrastructure Fund, and the Tax Compliance and Administration |
15 | | Fund as provided in this Section, the Department shall pay |
16 | | each month into the Road Fund the amount estimated to |
17 | | represent 32% of the net revenue realized from the taxes |
18 | | imposed on motor fuel and gasohol. Beginning July 1, 2023 and |
19 | | until July 1, 2024, subject to the payment of amounts into the |
20 | | County and Mass Transit District Fund, the Local Government |
21 | | Tax Fund, the Build Illinois Fund, the McCormick Place |
22 | | Expansion Project Fund, the Illinois Tax Increment Fund, the |
23 | | Energy Infrastructure Fund, and the Tax Compliance and |
24 | | Administration Fund as provided in this Section, the |
25 | | Department shall pay each month into the Road Fund the amount |
26 | | estimated to represent 48% of the net revenue realized from |
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1 | | the taxes imposed on motor fuel and gasohol. Beginning July 1, |
2 | | 2024 and until July 1, 2025, subject to the payment of amounts |
3 | | into the County and Mass Transit District Fund, the Local |
4 | | Government Tax Fund, the Build Illinois Fund, the McCormick |
5 | | Place Expansion Project Fund, the Illinois Tax Increment Fund, |
6 | | the Energy Infrastructure Fund, and the Tax Compliance and |
7 | | Administration Fund as provided in this Section, the |
8 | | Department shall pay each month into the Road Fund the amount |
9 | | estimated to represent 64% of the net revenue realized from |
10 | | the taxes imposed on motor fuel and gasohol. Beginning on July |
11 | | 1, 2025, subject to the payment of amounts into the County and |
12 | | Mass Transit District Fund, the Local Government Tax Fund, the |
13 | | Build Illinois Fund, the McCormick Place Expansion Project |
14 | | Fund, the Illinois Tax Increment Fund, the Energy |
15 | | Infrastructure Fund, and the Tax Compliance and Administration |
16 | | Fund as provided in this Section, the Department shall pay |
17 | | each month into the Road Fund the amount estimated to |
18 | | represent 80% of the net revenue realized from the taxes |
19 | | imposed on motor fuel and gasohol. As used in this paragraph |
20 | | "motor fuel" has the meaning given to that term in Section 1.1 |
21 | | of the Motor Fuel Tax Law, and "gasohol" has the meaning given |
22 | | to that term in Section 3-40 of the Use Tax Act. |
23 | | Of the remainder of the moneys received by the Department |
24 | | pursuant to
this Act, 75% thereof shall be paid into the State |
25 | | treasury Treasury and 25% shall
be reserved in a special |
26 | | account and used only for the transfer to the
Common School |
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1 | | Fund as part of the monthly transfer from the General Revenue
|
2 | | Fund in accordance with Section 8a of the State Finance Act. |
3 | | The Department may, upon separate written notice to a |
4 | | taxpayer,
require the taxpayer to prepare and file with the |
5 | | Department on a form
prescribed by the Department within not |
6 | | less than 60 days after receipt
of the notice an annual |
7 | | information return for the tax year specified in
the notice. |
8 | | Such annual return to the Department shall include a
statement |
9 | | of gross receipts as shown by the retailer's last Federal |
10 | | income
tax return. If the total receipts of the business as |
11 | | reported in the
Federal income tax return do not agree with the |
12 | | gross receipts reported to
the Department of Revenue for the |
13 | | same period, the retailer shall attach
to his annual return a |
14 | | schedule showing a reconciliation of the 2
amounts and the |
15 | | reasons for the difference. The retailer's annual
return to |
16 | | the Department shall also disclose the cost of goods sold by
|
17 | | the retailer during the year covered by such return, opening |
18 | | and closing
inventories of such goods for such year, costs of |
19 | | goods used from stock
or taken from stock and given away by the |
20 | | retailer during such year,
payroll information of the |
21 | | retailer's business during such year and any
additional |
22 | | reasonable information which the Department deems would be
|
23 | | helpful in determining the accuracy of the monthly, quarterly |
24 | | or annual
returns filed by such retailer as provided for in |
25 | | this Section. |
26 | | If the annual information return required by this Section |
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1 | | is not
filed when and as required, the taxpayer shall be liable |
2 | | as follows: |
3 | | (i) Until January 1, 1994, the taxpayer shall be |
4 | | liable
for a penalty equal to 1/6 of 1% of the tax due from |
5 | | such taxpayer under
this Act during the period to be |
6 | | covered by the annual return for each
month or fraction of |
7 | | a month until such return is filed as required, the
|
8 | | penalty to be assessed and collected in the same manner as |
9 | | any other
penalty provided for in this Act. |
10 | | (ii) On and after January 1, 1994, the taxpayer shall |
11 | | be
liable for a penalty as described in Section 3-4 of the |
12 | | Uniform Penalty and
Interest Act. |
13 | | The chief executive officer, proprietor, owner or highest |
14 | | ranking
manager shall sign the annual return to certify the |
15 | | accuracy of the
information contained therein. Any person who |
16 | | willfully signs the
annual return containing false or |
17 | | inaccurate information shall be guilty
of perjury and punished |
18 | | accordingly. The annual return form prescribed
by the |
19 | | Department shall include a warning that the person signing the
|
20 | | return may be liable for perjury. |
21 | | The provisions of this Section concerning the filing of an |
22 | | annual
information return do not apply to a retailer who is not |
23 | | required to
file an income tax return with the United States |
24 | | Government. |
25 | | As soon as possible after the first day of each month, upon |
26 | | certification
of the Department of Revenue, the Comptroller |
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1 | | shall order transferred and
the Treasurer shall transfer from |
2 | | the General Revenue Fund to the Motor
Fuel Tax Fund an amount |
3 | | equal to 1.7% of 80% of the net revenue realized
under this Act |
4 | | for the second preceding
month.
Beginning April 1, 2000, this |
5 | | transfer is no longer required
and shall not be made. |
6 | | Net revenue realized for a month shall be the revenue |
7 | | collected by the
State pursuant to this Act, less the amount |
8 | | paid out during that month as
refunds to taxpayers for |
9 | | overpayment of liability. |
10 | | For greater simplicity of administration, manufacturers, |
11 | | importers
and wholesalers whose products are sold at retail in |
12 | | Illinois by
numerous retailers, and who wish to do so, may |
13 | | assume the responsibility
for accounting and paying to the |
14 | | Department all tax accruing under this
Act with respect to |
15 | | such sales, if the retailers who are affected do not
make |
16 | | written objection to the Department to this arrangement. |
17 | | Any person who promotes, organizes, provides retail |
18 | | selling space for
concessionaires or other types of sellers at |
19 | | the Illinois State Fair, DuQuoin
State Fair, county fairs, |
20 | | local fairs, art shows, flea markets and similar
exhibitions |
21 | | or events, including any transient merchant as defined by |
22 | | Section 2
of the Transient Merchant Act of 1987, is required to |
23 | | file a report with the
Department providing the name of the |
24 | | merchant's business, the name of the
person or persons engaged |
25 | | in merchant's business, the permanent address and
Illinois |
26 | | Retailers Occupation Tax Registration Number of the merchant, |
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1 | | the
dates and location of the event and other reasonable |
2 | | information that the
Department may require. The report must |
3 | | be filed not later than the 20th day
of the month next |
4 | | following the month during which the event with retail sales
|
5 | | was held. Any person who fails to file a report required by |
6 | | this Section
commits a business offense and is subject to a |
7 | | fine not to exceed $250. |
8 | | Any person engaged in the business of selling tangible |
9 | | personal
property at retail as a concessionaire or other type |
10 | | of seller at the
Illinois State Fair, county fairs, art shows, |
11 | | flea markets and similar
exhibitions or events, or any |
12 | | transient merchants, as defined by Section 2
of the Transient |
13 | | Merchant Act of 1987, may be required to make a daily report
of |
14 | | the amount of such sales to the Department and to make a daily |
15 | | payment of
the full amount of tax due. The Department shall |
16 | | impose this
requirement when it finds that there is a |
17 | | significant risk of loss of
revenue to the State at such an |
18 | | exhibition or event. Such a finding
shall be based on evidence |
19 | | that a substantial number of concessionaires
or other sellers |
20 | | who are not residents of Illinois will be engaging in
the |
21 | | business of selling tangible personal property at retail at |
22 | | the
exhibition or event, or other evidence of a significant |
23 | | risk of loss of revenue
to the State. The Department shall |
24 | | notify concessionaires and other sellers
affected by the |
25 | | imposition of this requirement. In the absence of
notification |
26 | | by the Department, the concessionaires and other sellers
shall |
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1 | | file their returns as otherwise required in this Section. |
2 | | (Source: P.A. 101-10, Article 15, Section 15-25, eff. 6-5-19; |
3 | | 101-10, Article 25, Section 25-120, eff. 6-5-19; 101-27, eff. |
4 | | 6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19; |
5 | | 101-636, eff. 6-10-20; 102-634, eff. 8-27-21; 102-700, Article |
6 | | 60, Section 60-30, eff. 4-19-22; 102-700, Article 65, Section |
7 | | 65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff. |
8 | | 1-1-23; revised 12-13-22.) |
9 | | ARTICLE 75. REV ILLINOIS PROGRAM |
10 | | Section 75-5. The Reimagining Energy and Vehicles in |
11 | | Illinois Act is amended by changing Sections 20, 30, 40, and 45 |
12 | | as follows: |
13 | | (20 ILCS 686/20)
|
14 | | Sec. 20. REV Illinois Program; project applications. |
15 | | (a) The Reimagining Energy and Vehicles in Illinois (REV |
16 | | Illinois) Program is hereby established and shall be |
17 | | administered by the Department. The Program will provide |
18 | | financial incentives to any one or more of the following: (1) |
19 | | eligible manufacturers of electric vehicles, electric vehicle |
20 | | component parts, and electric vehicle power supply equipment; |
21 | | (2) battery recycling and reuse manufacturers; (3) battery raw |
22 | | materials refining service providers; or (4) renewable energy |
23 | | manufacturers. |
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1 | | (b) Any taxpayer planning a project to be located in |
2 | | Illinois may request consideration for designation of its |
3 | | project as a REV Illinois Project, by formal written letter of |
4 | | request or by formal application to the Department, in which |
5 | | the applicant states its intent to make at least a specified |
6 | | level of investment and intends to hire a specified number of |
7 | | full-time employees at a designated location in Illinois. As |
8 | | circumstances require, the Department shall require a formal |
9 | | application from an applicant and a formal letter of request |
10 | | for assistance. |
11 | | (c) In order to qualify for credits under the REV Illinois |
12 | | Program, an applicant must: |
13 | | (1) if the applicant is an electric vehicle |
14 | | manufacturer: |
15 | | (A) make an investment of at least $1,500,000,000 |
16 | | in capital improvements at the project site; |
17 | | (B) to be placed in service within the State |
18 | | within a 60-month period after approval of the |
19 | | application; and |
20 | | (C) create at least 500 new full-time employee |
21 | | jobs; or |
22 | | (2) if the applicant is an electric vehicle component |
23 | | parts manufacturer or a renewable energy
manufacturer: |
24 | | (A) make an investment of at least $300,000,000 in |
25 | | capital improvements at the project site; |
26 | | (B) manufacture one or more parts that are |
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1 | | primarily used for electric vehicle manufacturing; |
2 | | (C) to be placed in service within the State |
3 | | within a 60-month period after approval of the |
4 | | application; and |
5 | | (D) create at least 150 new full-time employee |
6 | | jobs; or |
7 | | (3) if the agreement is entered into before the
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8 | | effective date of this amendatory Act of the 102nd General
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9 | | Assembly and the applicant is an electric vehicle |
10 | | manufacturer, an electric vehicle power supply equipment |
11 | | manufacturer, an electric vehicle component part |
12 | | manufacturer that does not qualify under paragraph (2) |
13 | | above, a battery recycling and reuse manufacturer, or a |
14 | | battery raw materials refining service provider: |
15 | | (A) make an investment of at least $20,000,000 in |
16 | | capital improvements at the project site; |
17 | | (B) for electric vehicle component part |
18 | | manufacturers, manufacture one or more parts that are |
19 | | primarily used for electric vehicle manufacturing; |
20 | | (C) to be placed in service within the State |
21 | | within a 48-month period after approval of the |
22 | | application; and |
23 | | (D) create at least 50 new full-time employee |
24 | | jobs; or |
25 | | (3.1) if the agreement is entered into on or after the |
26 | | effective date of this amendatory Act of the 102nd General |
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1 | | Assembly and the applicant is an electric vehicle |
2 | | manufacturer, an electric vehicle power supply equipment |
3 | | manufacturer, an electric vehicle component part |
4 | | manufacturer that does not qualify under paragraph (2) |
5 | | above, a renewable energy manufacturer that does not |
6 | | qualify under paragraph (2) above, a battery recycling and |
7 | | reuse manufacturer, or a battery raw materials refining |
8 | | service provider: |
9 | | (A) make an investment of at least $2,500,000 in |
10 | | capital improvements at the project site; |
11 | | (B) in the case of electric vehicle component part |
12 | | manufacturers, manufacture one or more parts that are |
13 | | used for electric vehicle manufacturing; |
14 | | (C) to be placed in service within the State |
15 | | within a 48-month period after approval of the |
16 | | application; and |
17 | | (D) create the lesser of 50 new full-time employee |
18 | | jobs or new full-time employee jobs equivalent to 10% |
19 | | of the Statewide baseline applicable to the taxpayer |
20 | | and any related member at the time of application; or |
21 | | (4) if the agreement is entered into before the
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22 | | effective date of this amendatory Act of the 102nd General
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23 | | Assembly and the applicant is an electric vehicle |
24 | | manufacturer or electric vehicle component parts |
25 | | manufacturer with existing operations within Illinois that |
26 | | intends to convert or expand, in whole or in part, the |
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1 | | existing facility from traditional manufacturing to |
2 | | primarily electric vehicle manufacturing, electric vehicle |
3 | | component parts manufacturing, or electric vehicle power |
4 | | supply equipment manufacturing: |
5 | | (A) make an investment of at least $100,000,000 in |
6 | | capital improvements at the project site; |
7 | | (B) to be placed in service within the State |
8 | | within a 60-month period after approval of the |
9 | | application; and |
10 | | (C) create the lesser of 75 new full-time employee |
11 | | jobs or new full-time employee jobs equivalent to 10% |
12 | | of the Statewide baseline applicable to the taxpayer |
13 | | and any related member at the time of application; or |
14 | | (4.1) if the agreement is entered into on or after the |
15 | | effective date of this amendatory Act of the 102nd General |
16 | | Assembly and the applicant (i) is an electric vehicle |
17 | | manufacturer, an electric vehicle component parts |
18 | | manufacturer, or a renewable energy manufacturer and (ii) |
19 | | has existing operations within Illinois that the applicant |
20 | | intends to convert or expand, in whole or in part, from |
21 | | traditional manufacturing to electric vehicle |
22 | | manufacturing, electric vehicle component parts |
23 | | manufacturing, renewable energy manufacturing, or electric |
24 | | vehicle power supply equipment manufacturing: |
25 | | (A) make an investment of at least $100,000,000 in |
26 | | capital improvements at the project site; |
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1 | | (B) to be placed in service within the State |
2 | | within a 60-month period after approval of the |
3 | | application; and |
4 | | (C) create the lesser of 50 new full-time employee |
5 | | jobs or new full-time employee jobs equivalent to 10% |
6 | | of the Statewide baseline applicable to the taxpayer |
7 | | and any related member at the time of application ; or . |
8 | | (5) if the agreement is entered into on or after the |
9 | | effective date of the changes made to this Section by this |
10 | | amendatory Act of the 103rd General Assembly and before |
11 | | June 1, 2024 and the applicant (i) is an electric vehicle |
12 | | manufacturer, an electric vehicle component parts |
13 | | manufacturer, or a renewable energy manufacturer or (ii) |
14 | | has existing operations within Illinois that the applicant |
15 | | intends to convert or expand, in whole or in part, from |
16 | | traditional manufacturing to electric vehicle |
17 | | manufacturing, electric vehicle component parts |
18 | | manufacturing, renewable energy manufacturing, or electric |
19 | | vehicle power supply equipment manufacturing: |
20 | | (A) make an investment of at least $500,000,000 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) retain at least 800 full-time employee jobs at |
26 | | the project. |
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1 | | (d) For agreements entered into prior to April 19, 2022 |
2 | | (the effective date of Public Act 102-700), for any applicant |
3 | | creating the full-time employee jobs noted in subsection (c), |
4 | | those jobs must have a total compensation equal to or greater |
5 | | than 120% of the average wage paid to full-time employees in |
6 | | the county where the project is located, as determined by the |
7 | | U.S. Bureau of Labor Statistics. For agreements entered into |
8 | | on or after April 19, 2022 (the effective date of Public Act |
9 | | 102-700), for any applicant creating the full-time employee |
10 | | jobs noted in subsection (c), those jobs must have a |
11 | | compensation equal to or greater than 120% of the average wage |
12 | | paid to full-time employees in a similar position within an |
13 | | occupational group in the county where the project is located, |
14 | | as determined by the Department. |
15 | | (e) For any applicant, within 24 months after being placed |
16 | | in service, it must certify to the Department that it is carbon |
17 | | neutral or has attained certification under one of more of the |
18 | | following green building standards: |
19 | | (1) BREEAM for New Construction or BREEAM In-Use; |
20 | | (2) ENERGY STAR; |
21 | | (3) Envision; |
22 | | (4) ISO 50001 - energy management; |
23 | | (5) LEED for Building Design and Construction or LEED |
24 | | for Building Operations and Maintenance; |
25 | | (6) Green Globes for New Construction or Green Globes |
26 | | for Existing Buildings; or |
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1 | | (7) UL 3223. |
2 | | (f) Each applicant must outline its hiring plan and |
3 | | commitment to recruit and hire full-time employee positions at |
4 | | the project site. The hiring plan may include a partnership |
5 | | with an institution of higher education to provide |
6 | | internships, including, but not limited to, internships |
7 | | supported by the Clean Jobs Workforce Network Program, or |
8 | | full-time permanent employment for students at the project |
9 | | site. Additionally, the applicant may create or utilize |
10 | | participants from apprenticeship programs that are approved by |
11 | | and registered with the United States Department of Labor's |
12 | | Bureau of Apprenticeship and Training. The applicant may apply |
13 | | for apprenticeship education expense credits in accordance |
14 | | with the provisions set forth in 14 Ill. Adm. Code 522. Each |
15 | | applicant is required to report annually, on or before April |
16 | | 15, on the diversity of its workforce in accordance with |
17 | | Section 50 of this Act. For existing facilities of applicants |
18 | | under paragraph (3) of subsection (b) above, if the taxpayer |
19 | | expects a reduction in force due to its transition to |
20 | | manufacturing electric vehicle, electric vehicle component |
21 | | parts, or electric vehicle power supply equipment, the plan |
22 | | submitted under this Section must outline the taxpayer's plan |
23 | | to assist with retraining its workforce aligned with the |
24 | | taxpayer's adoption of new technologies and anticipated |
25 | | efforts to retrain employees through employment opportunities |
26 | | within the taxpayer's workforce. |
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1 | | (g) Each applicant must demonstrate a contractual or other |
2 | | relationship with a recycling facility, or demonstrate its own |
3 | | recycling capabilities, at the time of application and report |
4 | | annually a continuing contractual or other relationship with a |
5 | | recycling facility and the percentage of batteries used in |
6 | | electric vehicles recycled throughout the term of the |
7 | | agreement. |
8 | | (h) A taxpayer may not enter into more than one agreement |
9 | | under this Act with respect to a single address or location for |
10 | | the same period of time. Also, a taxpayer may not enter into an |
11 | | agreement under this Act with respect to a single address or |
12 | | location for the same period of time for which the taxpayer |
13 | | currently holds an active agreement under the Economic |
14 | | Development for a Growing Economy Tax Credit Act. This |
15 | | provision does not preclude the applicant from entering into |
16 | | an additional agreement after the expiration or voluntary |
17 | | termination of an earlier agreement under this Act or under |
18 | | the Economic Development for a Growing Economy Tax Credit Act |
19 | | to the extent that the taxpayer's application otherwise |
20 | | satisfies the terms and conditions of this Act and is approved |
21 | | by the Department. An applicant with an existing agreement |
22 | | under the Economic Development for a Growing Economy Tax |
23 | | Credit Act may submit an application for an agreement under |
24 | | this Act after it terminates any existing agreement under the |
25 | | Economic Development for a Growing Economy Tax Credit Act with |
26 | | respect to the same address or location. If a project that is |
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1 | | subject to an existing agreement under the Economic
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2 | | Development for a Growing Economy Tax Credit Act meets the
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3 | | requirements to be designated as a REV Illinois project under
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4 | | this Act, including for actions undertaken prior to the
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5 | | effective date of this Act, the taxpayer that is subject to
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6 | | that existing agreement under the Economic Development for a
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7 | | Growing Economy Tax Credit Act may apply to the Department to
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8 | | amend the agreement to allow the project to become a
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9 | | designated REV Illinois project. Following the amendment, time
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10 | | accrued during which the project was eligible for credits
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11 | | under the existing agreement under the Economic Development
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12 | | for a Growing Economy Tax Credit Act shall count toward the
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13 | | duration of the credit subject to limitations described in
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14 | | Section 40 of this Act. |
15 | | (i) If, at any time following the designation of a project
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16 | | as a REV Illinois Project by the Department and prior to the
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17 | | termination or expiration of an agreement under this Act, the
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18 | | project ceases to qualify as a REV Illinois project because
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19 | | the taxpayer is no longer an electric vehicle manufacturer, an
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20 | | electric vehicle component manufacturer, an electric vehicle
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21 | | power supply equipment manufacturer, a battery recycling and
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22 | | reuse manufacturer, or a battery raw materials refining
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23 | | service provider, that project may receive tax credit awards
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24 | | as described in Section 5-15 and Section 5-51 of the Economic
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25 | | Development for a Growing Economy Tax Credit Act, as long as
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26 | | the project continues to meet requirements to obtain those
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1 | | credits as described in the Economic Development for a Growing
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2 | | Economy Tax Credit Act and remains compliant with terms
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3 | | contained in the Agreement under this Act not related to their
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4 | | status as an electric vehicle manufacturer, an electric
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5 | | vehicle component manufacturer, an electric vehicle power
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6 | | supply equipment manufacturer, a battery recycling and reuse
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7 | | manufacturer, or a battery raw materials refining service
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8 | | provider. Time accrued during which the project was eligible
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9 | | for credits under an agreement under this Act shall count
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10 | | toward the duration of the credit subject to limitations
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11 | | described in Section 5-45 of the Economic Development for a
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12 | | Growing Economy Tax Credit Act.
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13 | | (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22; |
14 | | 102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23.) |
15 | | (20 ILCS 686/30)
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16 | | Sec. 30. Tax credit awards. |
17 | | (a) Subject to the conditions set forth in this Act, a |
18 | | taxpayer is entitled to a credit against the tax imposed |
19 | | pursuant to subsections (a) and (b) of Section 201 of the |
20 | | Illinois Income Tax Act for a taxable year beginning on or |
21 | | after January 1, 2025 if the taxpayer is awarded a credit by |
22 | | the Department in accordance with an agreement under this Act. |
23 | | The Department has authority to award credits under this Act |
24 | | on and after January 1, 2022. |
25 | | (b) REV Illinois Credits. A taxpayer may receive a tax |
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1 | | credit against the tax imposed under subsections (a) and (b) |
2 | | of Section 201 of the Illinois Income Tax Act, not to exceed |
3 | | the sum of (i) 75% of the incremental income tax attributable |
4 | | to new employees at the applicant's project and (ii) 10% of the |
5 | | training costs of the new employees. If the project is located |
6 | | in an underserved area or an energy transition area, then the |
7 | | amount of the credit may not exceed the sum of (i) 100% of the |
8 | | incremental income tax attributable to new employees at the |
9 | | applicant's project; and (ii) 10% of the training costs of the |
10 | | new employees. The percentage of training costs includable in |
11 | | the calculation may be increased by an additional 15% for |
12 | | training costs associated with new employees that are recent |
13 | | (2 years or less) graduates, certificate holders, or |
14 | | credential recipients from an institution of higher education |
15 | | in Illinois, or, if the training is provided by an institution |
16 | | of higher education in Illinois, the Clean Jobs Workforce |
17 | | Network Program, or an apprenticeship and training program |
18 | | located in Illinois and approved by and registered with the |
19 | | United States Department of Labor's Bureau of Apprenticeship |
20 | | and Training. An applicant is also eligible for a training |
21 | | credit that shall not exceed 10% of the training costs of |
22 | | retained employees for the purpose of upskilling to meet the |
23 | | operational needs of the applicant or the REV Illinois |
24 | | Project. The percentage of training costs includable in the |
25 | | calculation shall not exceed a total of 25%. If an applicant |
26 | | agrees to hire the required number of new employees, then the |
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1 | | maximum amount of the credit for that applicant may be |
2 | | increased by an amount not to exceed 75% of the incremental |
3 | | income tax attributable to retained employees at the |
4 | | applicant's project; provided that, in order to receive the |
5 | | increase for retained employees, the applicant must, if |
6 | | applicable, meet or exceed the statewide baseline. For |
7 | | agreements entered into on or after the effective date of this |
8 | | amendatory Act of the 103rd General Assembly and before June |
9 | | 1, 2024 that qualify under paragraph (5) of subsection (c) of |
10 | | Section 20, a taxpayer may receive a tax credit not to exceed |
11 | | 75% of the incremental income tax attributable to retained |
12 | | employees at the applicant's project. If the project is in an |
13 | | underserved area or an energy transition area and qualifies |
14 | | under paragraph (5) of subsection (c) of Section 20, then the |
15 | | maximum amount of the credit attributable to retained |
16 | | employees for the applicant may be increased to an amount not |
17 | | to exceed 100% of the incremental income tax attributable to |
18 | | retained employees at the applicant's project. |
19 | | If the Project is in an underserved area or an energy |
20 | | transition area, the maximum amount of the credit attributable |
21 | | to retained employees for the applicant may be increased to an |
22 | | amount not to exceed 100% of the incremental income tax |
23 | | attributable to retained employees at the applicant's project; |
24 | | provided that, in order to receive the increase for retained |
25 | | employees, the applicant must meet or exceed the statewide |
26 | | baseline. REV Illinois Credits awarded may include credit |
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1 | | earned for incremental income tax withheld and training costs |
2 | | incurred by the taxpayer beginning on or after January 1, |
3 | | 2022. Credits so earned and certified by the Department may be |
4 | | applied against the tax imposed by subsections (a) and (b) of |
5 | | Section 201 of the Illinois Income Tax Act for taxable years |
6 | | beginning on or after January 1, 2025. |
7 | | (c) REV Construction Jobs Credit. For construction wages |
8 | | associated with a project that qualified for a REV Illinois |
9 | | Credit under subsection (b), the taxpayer may receive a tax |
10 | | credit against the tax imposed under subsections (a) and (b) |
11 | | of Section 201 of the Illinois Income Tax Act in an amount |
12 | | equal to 50% of the incremental income tax attributable to |
13 | | construction wages paid in connection with construction of the |
14 | | project facilities, as a jobs credit for workers hired to |
15 | | construct the project. |
16 | | The REV Construction Jobs Credit may not exceed 75% of the |
17 | | amount of the incremental income tax attributable to |
18 | | construction wages paid in connection with construction of the |
19 | | project facilities if the project is in an underserved area or |
20 | | an energy transition area. |
21 | | (d) The Department shall certify to the Department of |
22 | | Revenue: (1) the identity of Taxpayers that are eligible for |
23 | | the REV Illinois Credit and REV Construction Jobs Credit; (2) |
24 | | the amount of the REV Illinois Credits and REV Construction |
25 | | Jobs Credits awarded in each calendar year; and (3) the amount |
26 | | of the REV Illinois Credit and REV Construction Jobs Credit |
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1 | | claimed in each calendar year. REV Illinois Credits awarded |
2 | | may include credit earned for Incremental Income Tax withheld |
3 | | and Training Costs incurred by the Taxpayer beginning on or |
4 | | after January 1, 2022. Credits so earned and certified by the |
5 | | Department may be applied against the tax imposed by Section |
6 | | 201(a) and (b) of the Illinois Income Tax Act for taxable years |
7 | | beginning on or after January 1, 2025. |
8 | | (e) Applicants seeking certification for a tax credits |
9 | | related to the construction of the project facilities in the |
10 | | State shall require the contractor to enter into a project |
11 | | labor agreement that conforms with the Project Labor |
12 | | Agreements Act. |
13 | | (f) Any applicant issued a certificate for a tax credit or |
14 | | tax exemption under this Act must annually report to the |
15 | | Department the total project tax benefits received. Reports |
16 | | are due no later than May 31 of each year and shall cover the |
17 | | previous calendar year. The first report is for the 2022 |
18 | | calendar year and is due no later than May 31, 2023. For |
19 | | applicants issued a certificate of exemption under Section 105 |
20 | | of this Act, the report shall be the same as required for a |
21 | | High Impact Business under subsection (a-5) of Section 8.1 of |
22 | | the Illinois Enterprise Zone Act. Each person required to file |
23 | | a return under the Gas Revenue Tax Act, the Electricity Excise |
24 | | Tax Law, or the Telecommunications Excise Tax Act shall file a |
25 | | report containing information about customers that are issued |
26 | | an exemption certificate under Section 95 of this Act in the |
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1 | | same manner and form as they are required to report under |
2 | | subsection (b) of Section 8.1 of the Illinois Enterprise Zone |
3 | | Act. |
4 | | (g) Nothing in this Act shall prohibit an award of credit |
5 | | to an applicant that uses a PEO if all other award criteria are |
6 | | satisfied. |
7 | | (h) With respect to any portion of a REV Illinois Credit |
8 | | that is based on the incremental income tax attributable to |
9 | | new employees or retained employees, in lieu of the Credit |
10 | | allowed under this Act against the taxes imposed pursuant to |
11 | | subsections (a) and (b) of Section 201 of the Illinois Income |
12 | | Tax Act, a taxpayer that otherwise meets the criteria set |
13 | | forth in this Section, the taxpayer may elect to claim the |
14 | | credit, on or after January 1, 2025, against its obligation to |
15 | | pay over withholding under Section 704A of the Illinois Income |
16 | | Tax Act. The election shall be made in the manner prescribed by |
17 | | the Department of Revenue and once made shall be irrevocable.
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18 | | (Source: P.A. 102-669, eff. 11-16-21; 102-1112, eff. 12-21-22; |
19 | | 102-1125, eff. 2-3-23; revised 4-5-23.) |
20 | | (20 ILCS 686/40)
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21 | | Sec. 40. Amount and duration of the credits; limitation to |
22 | | amount of costs of specified items. The Department shall |
23 | | determine the amount and duration of the REV Illinois Credit |
24 | | awarded under this Act, subject to the limitations set forth |
25 | | in this Act. For a project that qualified under paragraph (1), |
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1 | | (2), (4), or (4.1) , or (5) of subsection (c) of Section 20, the |
2 | | duration of the credit may not exceed 15 taxable years, with an
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3 | | option to renew the agreement for no more than one term not to
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4 | | exceed an additional 15 taxable years. For a project that |
5 | | qualified under paragraph (3) or (3.1) of subsection (c) of |
6 | | Section 20, the duration of the credit may not exceed 10 |
7 | | taxable years, with an option to renew the agreement for no
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8 | | more than one term not to exceed an additional 10 taxable
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9 | | years. The credit may be stated as a percentage of the |
10 | | incremental income tax and training costs attributable to the |
11 | | applicant's project and may include a fixed dollar limitation. |
12 | | Nothing in this Section shall prevent the Department, in |
13 | | consultation with the Department of Revenue, from adopting |
14 | | rules to extend the sunset of any earned, existing, and unused |
15 | | tax credit or credits a taxpayer may be in possession of, as |
16 | | provided for in Section 605-1055 of the Department of Commerce |
17 | | and Economic Opportunity Law of the Civil Administrative Code |
18 | | of Illinois, notwithstanding the carry-forward provisions |
19 | | pursuant to paragraph (4) of Section 211 of the Illinois |
20 | | Income Tax Act.
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21 | | (Source: P.A. 102-669, eff. 11-16-21; 102-1112, eff. 12-21-22; |
22 | | 102-1125, eff. 2-3-23; revised 4-5-23.) |
23 | | (20 ILCS 686/45)
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24 | | Sec. 45. Contents of agreements with applicants. |
25 | | (a) The Department shall enter into an agreement with an |
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1 | | applicant that is awarded a credit under this Act. The |
2 | | agreement shall include all of the following: |
3 | | (1) A detailed description of the project that is the |
4 | | subject of the agreement, including the location and |
5 | | amount of the investment and jobs created or retained. |
6 | | (2) The duration of the credit, the first taxable year |
7 | | for which the credit may be awarded, and the first taxable |
8 | | year in which the credit may be used by the taxpayer. |
9 | | (3) The credit amount that will be allowed for each |
10 | | taxable year. |
11 | | (4) For a project qualified under paragraphs (1), (2), |
12 | | or (4) , or (5) of subsection (c) of Section 20, a |
13 | | requirement that the taxpayer shall maintain operations at |
14 | | the project location a minimum number of years not to |
15 | | exceed 15. For a project qualified under paragraph (3) of |
16 | | subsection (c) of Section 20, a requirement that the |
17 | | taxpayer shall maintain operations at the project location |
18 | | a minimum number of years not to exceed 10. |
19 | | (5) A specific method for determining the number of |
20 | | new employees and if applicable, retained employees, |
21 | | employed during a taxable year. |
22 | | (6) A requirement that the taxpayer shall annually |
23 | | report to the Department the number of new employees, the |
24 | | incremental income tax withheld in connection with the new |
25 | | employees, and any other information the Department deems |
26 | | necessary and appropriate to perform its duties under this |
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1 | | Act. |
2 | | (7) A requirement that the Director is authorized to |
3 | | verify with the appropriate State agencies the amounts |
4 | | reported under paragraph (6), and after doing so shall |
5 | | issue a certificate to the taxpayer stating that the |
6 | | amounts have been verified. |
7 | | (8) A requirement that the taxpayer shall provide |
8 | | written notification to the Director not more than 30 days |
9 | | after the taxpayer makes or receives a proposal that would |
10 | | transfer the taxpayer's State tax liability obligations to |
11 | | a successor taxpayer. |
12 | | (9) A detailed description of the number of new |
13 | | employees to be hired, and the occupation and payroll of |
14 | | full-time jobs to be created or retained because of the |
15 | | project. |
16 | | (10) The minimum investment the taxpayer will make in |
17 | | capital improvements, the time period for placing the |
18 | | property in service, and the designated location in |
19 | | Illinois for the investment. |
20 | | (11) A requirement that the taxpayer shall provide |
21 | | written notification to the Director and the Director's |
22 | | designee not more than 30 days after the taxpayer |
23 | | determines that the minimum job creation or retention, |
24 | | employment payroll, or investment no longer is or will be |
25 | | achieved or maintained as set forth in the terms and |
26 | | conditions of the agreement. Additionally, the |
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1 | | notification should outline to the Department the number |
2 | | of layoffs, date of the layoffs, and detail taxpayer's |
3 | | efforts to provide career and training counseling for the |
4 | | impacted workers with industry-related certifications and |
5 | | trainings. |
6 | | (12) If applicable, a A provision that, if the total |
7 | | number of new employees falls below a specified level, the |
8 | | allowance of credit shall be suspended until the number of |
9 | | new employees equals or exceeds the agreement amount. |
10 | | (13) If applicable, a provision that specifies the |
11 | | statewide baseline at the time of application for retained |
12 | | employees. The Additionally, the agreement must have a |
13 | | provision addressing if the total number of retained |
14 | | employees falls below the lesser of the statewide baseline |
15 | | or the retention requirements specified in the agreement , |
16 | | the allowance of the credit shall be suspended until the |
17 | | number of retained employees equals or exceeds the |
18 | | agreement amount. |
19 | | (14) A detailed description of the items for which the |
20 | | costs incurred by the Taxpayer will be included in the |
21 | | limitation on the Credit provided in Section 40. |
22 | | (15) If the agreement is entered into before the |
23 | | effective date of the changes made to this Section by this |
24 | | amendatory Act of the 103rd General Assembly, a A |
25 | | provision stating that if the taxpayer fails to meet |
26 | | either the investment or job creation and retention |
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1 | | requirements specified in the agreement during the entire |
2 | | 5-year period beginning on the first day of the first |
3 | | taxable year in which the agreement is executed and ending |
4 | | on the last day of the fifth taxable year after the |
5 | | agreement is executed, then the agreement is automatically |
6 | | terminated on the last day of the fifth taxable year after |
7 | | the agreement is executed, and the taxpayer is not |
8 | | entitled to the award of any credits for any of that 5-year |
9 | | period. If the agreement is entered into on or after the |
10 | | effective date of the changes made to this Section by this |
11 | | amendatory Act of the 103rd General Assembly, a provision |
12 | | stating that if the taxpayer fails to meet either the |
13 | | investment or job creation and retention requirements |
14 | | specified in the agreement during the entire 10-year |
15 | | period beginning on the effective date of the agreement |
16 | | and ending 10 years after the effective date of the |
17 | | agreement, then the agreement is automatically terminated, |
18 | | and the taxpayer is not entitled to the award of any |
19 | | credits for any of that 10-year period. |
20 | | (16) A provision stating that if the taxpayer ceases |
21 | | principal operations with the intent to permanently shut |
22 | | down the project in the State during the term of the |
23 | | Agreement, then the entire credit amount awarded to the |
24 | | taxpayer prior to the date the taxpayer ceases principal |
25 | | operations shall be returned to the Department and shall |
26 | | be reallocated to the local workforce investment area in |
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1 | | which the project was located. |
2 | | (17) A provision stating that the Taxpayer must |
3 | | provide the reports outlined in Sections 50 and 55 on or |
4 | | before April 15 each year. |
5 | | (18) A provision requiring the taxpayer to report |
6 | | annually its contractual obligations or otherwise with a |
7 | | recycling facility for its operations. |
8 | | (19) Any other performance conditions or contract |
9 | | provisions the Department determines are necessary or |
10 | | appropriate. |
11 | | (20) Each taxpayer under paragraph (1) of subsection |
12 | | (c) of Section 20 above shall maintain labor neutrality |
13 | | toward any union organizing campaign for any employees of |
14 | | the taxpayer assigned to work on the premises of the REV |
15 | | Illinois Project Site. This paragraph shall not apply to |
16 | | an electric vehicle manufacturer, electric vehicle |
17 | | component part manufacturer, electric vehicle power supply |
18 | | manufacturer, or renewable energy manufacturer, or any |
19 | | joint venture including an electric vehicle manufacturer, |
20 | | electric vehicle component part manufacturer, electric |
21 | | vehicle power supply manufacturer, or renewable energy |
22 | | manufacturer, who is subject to collective bargaining |
23 | | agreement entered into prior to the taxpayer filing an |
24 | | application pursuant to this Act. |
25 | | (b) The Department shall post on its website the terms of |
26 | | each agreement entered into under this Act. Such information |
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1 | | shall be posted within 10 days after entering into the |
2 | | agreement and must include the following: |
3 | | (1) the name of the taxpayer; |
4 | | (2) the location of the project; |
5 | | (3) the estimated value of the credit; |
6 | | (4) the number of new employee jobs and, if |
7 | | applicable, number of retained employee jobs at the |
8 | | project; and |
9 | | (5) whether or not the project is in an underserved |
10 | | area or energy transition area.
|
11 | | (Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23; |
12 | | revised 4-5-23.) |
13 | | ARTICLE 80. CIGARETTE TAX |
14 | | Section 80-5. The Cigarette Tax Act is amended by changing |
15 | | Section 2 as follows:
|
16 | | (35 ILCS 130/2) (from Ch. 120, par. 453.2)
|
17 | | Sec. 2. Tax imposed; rate; collection, payment, and |
18 | | distribution;
discount. |
19 | | (a) Beginning on July 1, 2019, in place of the aggregate |
20 | | tax rate of 99 mills previously imposed by this Act, a tax is |
21 | | imposed upon any person engaged in business as a retailer of |
22 | | cigarettes at the rate of 149 mills per cigarette sold or |
23 | | otherwise disposed of in the course of such business in this |
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1 | | State. |
2 | | (b) The payment of such taxes shall be evidenced by a stamp |
3 | | affixed to
each original package of cigarettes, or an |
4 | | authorized substitute for such stamp
imprinted on each |
5 | | original package of such cigarettes underneath the sealed
|
6 | | transparent outside wrapper of such original package, as |
7 | | hereinafter provided.
However, such taxes are not imposed upon |
8 | | any activity in such business in
interstate commerce or |
9 | | otherwise, which activity may not under
the Constitution and |
10 | | statutes of the United States be made the subject of
taxation |
11 | | by this State.
|
12 | | Out of the 149 mills per cigarette tax imposed by |
13 | | subsection (a), until July 1, 2023, the revenues received from |
14 | | 4 mills shall be paid into the Common School Fund each month, |
15 | | not to exceed $9,000,000 per month. Out of the 149 mills per |
16 | | cigarette tax imposed by subsection (a), until July 1, 2023, |
17 | | all of the revenues received from 7 mills shall be paid into |
18 | | the Common School Fund each month. Out of the 149 mills per |
19 | | cigarette tax imposed by subsection (a), until July 1, 2023, |
20 | | 50 mills per cigarette each month shall be paid into the |
21 | | Healthcare Provider Relief Fund. |
22 | | Beginning on July 1, 2006 and until July 1, 2023 , all of |
23 | | the moneys received by the Department of Revenue pursuant to |
24 | | this Act and the Cigarette Use Tax Act, other than the moneys |
25 | | that are dedicated to the Common School Fund and, beginning on |
26 | | the effective date of this amendatory Act of the 97th General |
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1 | | Assembly, other than the moneys from the additional taxes |
2 | | imposed by this amendatory Act of the 97th General Assembly |
3 | | that must be paid each month into the Healthcare Provider |
4 | | Relief Fund, and other than the moneys from the additional |
5 | | taxes imposed by this amendatory Act of the 101st General |
6 | | Assembly that must be paid each month under subsection (c), |
7 | | shall be distributed each month as follows: first, there shall |
8 | | be paid into the General Revenue Fund an amount that, when |
9 | | added to the amount paid into the Common School Fund for that |
10 | | month, equals $29,200,000; then, from the moneys remaining, if |
11 | | any amounts required to be paid into the General Revenue Fund |
12 | | in previous months remain unpaid, those amounts shall be paid |
13 | | into the General Revenue Fund; then from the moneys remaining, |
14 | | $5,000,000 per month shall be paid into the School |
15 | | Infrastructure Fund; then, if any amounts required to be paid |
16 | | into the School Infrastructure Fund in previous months remain |
17 | | unpaid, those amounts shall be paid into the School |
18 | | Infrastructure Fund; then the moneys remaining, if any, shall |
19 | | be paid into the Long-Term Care Provider Fund.
Any amounts |
20 | | required to be paid into the General Revenue Fund, the School |
21 | | Infrastructure Fund, the Long-Term Care Provider Fund, the |
22 | | Common School Fund, the Capital Projects Fund, or the |
23 | | Healthcare Provider Relief Fund under this subsection that |
24 | | remain unpaid as of July 1, 2023 shall be deemed satisfied on |
25 | | that date, eliminating any deficiency accrued through that |
26 | | date. |
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1 | | (c) Beginning on July 1, 2019 and until July 1, 2023 , all |
2 | | of the moneys from the additional taxes imposed by Public Act |
3 | | 101-31, except for moneys received from the tax on electronic |
4 | | cigarettes, received by the Department of Revenue pursuant to |
5 | | this Act, the Cigarette Use Tax Act, and the Tobacco Products |
6 | | Tax Act of 1995 shall be distributed each month into the |
7 | | Capital Projects Fund. |
8 | | (c-5) Beginning on July 1, 2023, all of the moneys |
9 | | received by the Department of Revenue pursuant to (i) this |
10 | | Act, (ii) the Cigarette Use Tax Act, and (iii) the tax imposed |
11 | | on little cigars under Section 10-10 of the Tobacco Products |
12 | | Tax Act of 1995 shall be paid each month as follows: |
13 | | (1) 7% into the Common School Fund; |
14 | | (2) 34% into the Healthcare Provider Relief Fund; |
15 | | (3) 34% into the Capital Projects Fund; and |
16 | | (4) 25% into the General Revenue Fund. |
17 | | (d) Until July 1, 2023, except Except for moneys received |
18 | | from the additional taxes imposed by Public Act 101-31, moneys |
19 | | collected from the tax imposed on little cigars under Section |
20 | | 10-10 of the Tobacco Products Tax Act of 1995 shall be included |
21 | | with the moneys collected under the Cigarette Tax Act and the |
22 | | Cigarette Use Tax Act when making distributions to the Common |
23 | | School Fund, the Healthcare Provider Relief Fund, the General |
24 | | Revenue Fund, the School Infrastructure Fund, and the |
25 | | Long-Term Care Provider Fund under this Section. Any amounts, |
26 | | including moneys collected from the tax imposed on little |
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1 | | cigars under Section 10-10 of the Tobacco Products Tax Act of |
2 | | 1995, that are required to be paid into the General Revenue |
3 | | Fund, the School Infrastructure Fund, the Long-Term Care |
4 | | Provider Fund, the Common School Fund, the Capital Projects |
5 | | Fund, or the Healthcare Provider Relief Fund under subsection |
6 | | (b) that remain unpaid as of July 1, 2023 shall be deemed |
7 | | satisfied on that date, eliminating any deficiency accrued |
8 | | through that date. Beginning on July 1, 2023, moneys collected |
9 | | from the tax imposed on little cigars under Section 10-10 of |
10 | | the Tobacco Products Tax Act of 1995 shall be included with the |
11 | | moneys collected under the Cigarette Tax Act and the Cigarette |
12 | | Use Tax Act when making distributions under subsections (c-5). |
13 | | (e) If the tax imposed herein terminates or has |
14 | | terminated, distributors
who have bought stamps while such tax |
15 | | was in effect and who therefore paid
such tax, but who can |
16 | | show, to the Department's satisfaction, that they
sold the |
17 | | cigarettes to which they affixed such stamps after such tax |
18 | | had
terminated and did not recover the tax or its equivalent |
19 | | from purchasers,
shall be allowed by the Department to take |
20 | | credit for such absorbed tax
against subsequent tax stamp |
21 | | purchases from the Department by such
distributor.
|
22 | | (f) The impact of the tax levied by this Act is imposed |
23 | | upon the retailer
and shall be prepaid or pre-collected by the |
24 | | distributor for the purpose of
convenience and facility only, |
25 | | and the amount of the tax shall be added to
the price of the |
26 | | cigarettes sold by such distributor. Collection of the tax
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1 | | shall be evidenced by a stamp or stamps affixed to each |
2 | | original package of
cigarettes, as hereinafter provided. Any |
3 | | distributor who purchases stamps may credit any excess |
4 | | payments verified by the Department against amounts |
5 | | subsequently due for the purchase of additional stamps, until |
6 | | such time as no excess payment remains.
|
7 | | (g) Each distributor shall collect the tax from the |
8 | | retailer at or before
the time of the sale, shall affix the |
9 | | stamps as hereinafter required, and
shall remit the tax |
10 | | collected from retailers to the Department, as
hereinafter |
11 | | provided. Any distributor who fails to properly collect and |
12 | | pay
the tax imposed by this Act shall be liable for the tax.
|
13 | | (h) Any distributor having cigarettes in his or her |
14 | | possession on July 1, 2019 to which tax stamps have been |
15 | | affixed, and any distributor having stamps in his or her |
16 | | possession on July 1, 2019 that have not been affixed to |
17 | | packages of cigarettes before July 1, 2019, is required to pay |
18 | | the additional tax that begins on July 1, 2019 imposed by this |
19 | | amendatory Act of the 101st General Assembly to the extent |
20 | | that the volume of affixed and unaffixed stamps in the |
21 | | distributor's possession on July 1, 2019 exceeds the average |
22 | | monthly volume of cigarette stamps purchased by the |
23 | | distributor in calendar year 2018. This payment, less the |
24 | | discount provided in subsection (l), is due when the |
25 | | distributor first makes a purchase of cigarette stamps on or |
26 | | after July 1, 2019 or on the first due date of a return under |
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1 | | this Act occurring on or after July 1, 2019, whichever occurs |
2 | | first. Those distributors may elect to pay the additional tax |
3 | | on packages of cigarettes to which stamps have been affixed |
4 | | and on any stamps in the distributor's possession that have |
5 | | not been affixed to packages of cigarettes in their possession |
6 | | on July 1, 2019 over a period not to exceed 12 months from the |
7 | | due date of the additional tax by notifying the Department in |
8 | | writing. The first payment for distributors making such |
9 | | election is due when the distributor first makes a purchase of |
10 | | cigarette tax stamps on or after July 1, 2019 or on the first |
11 | | due date of a return under this Act occurring on or after July |
12 | | 1, 2019, whichever occurs first. Distributors making such an |
13 | | election are not entitled to take the discount provided in |
14 | | subsection (l) on such payments. |
15 | | (i) Any retailer having cigarettes in its possession on |
16 | | July 1, 2019 to which tax stamps have been affixed is not |
17 | | required to pay the additional tax that begins on July 1, 2019 |
18 | | imposed by this amendatory Act of the 101st General Assembly |
19 | | on those stamped cigarettes. |
20 | | (j) Distributors making sales of cigarettes to secondary |
21 | | distributors shall add the amount of the tax to the price of |
22 | | the cigarettes sold by the distributors. Secondary |
23 | | distributors making sales of cigarettes to retailers shall |
24 | | include the amount of the tax in the price of the cigarettes |
25 | | sold to retailers. The amount of tax shall not be less than the |
26 | | amount of taxes imposed by the State and all local |
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1 | | jurisdictions. The amount of local taxes shall be calculated |
2 | | based on the location of the retailer's place of business |
3 | | shown on the retailer's certificate of registration or |
4 | | sub-registration issued to the retailer pursuant to Section 2a |
5 | | of the Retailers' Occupation Tax Act. The original packages of |
6 | | cigarettes sold to the retailer shall bear all the required |
7 | | stamps, or other indicia, for the taxes included in the price |
8 | | of cigarettes. |
9 | | (k) The amount of the Cigarette Tax imposed by this Act |
10 | | shall be separately
stated, apart from the price of the goods, |
11 | | by distributors, manufacturer representatives, secondary |
12 | | distributors, and
retailers, in all bills and sales invoices.
|
13 | | (l) The distributor shall be required to collect the tax |
14 | | provided
under paragraph (a) hereof, and, to cover the costs |
15 | | of such collection,
shall be allowed a discount during any |
16 | | year commencing July 1st and ending
the following June 30th in |
17 | | accordance with the schedule set out
hereinbelow, which |
18 | | discount shall be allowed at the time of purchase of the
stamps |
19 | | when purchase is required by this Act, or at the time when the |
20 | | tax
is remitted to the Department without the purchase of |
21 | | stamps from the
Department when that method of paying the tax |
22 | | is required or authorized by
this Act. |
23 | | On and after
December 1, 1985, a discount equal to 1.75% of |
24 | | the amount of the tax payable
under this Act up to and |
25 | | including the first $3,000,000 paid hereunder by such
|
26 | | distributor to the Department during any such year and 1.5% of |
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1 | | the amount of
any additional tax paid hereunder by such |
2 | | distributor to the Department during
any such year shall |
3 | | apply.
|
4 | | Two or more distributors that use a common means of |
5 | | affixing revenue tax
stamps or that are owned or controlled by |
6 | | the same interests shall be
treated as a single distributor |
7 | | for the purpose of computing the discount.
|
8 | | (m) The taxes herein imposed are in addition to all other |
9 | | occupation or
privilege taxes imposed by the State of |
10 | | Illinois, or by any political
subdivision thereof, or by any |
11 | | municipal corporation.
|
12 | | (Source: P.A. 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; |
13 | | 101-604, eff. 12-13-19.)
|
14 | | ARTICLE 85. USE AND OCCUPATION TAXES |
15 | | Section 85-5. The Use Tax Act is amended by changing |
16 | | Section 12 as follows:
|
17 | | (35 ILCS 105/12) (from Ch. 120, par. 439.12)
|
18 | | Sec. 12. Applicability of Retailers' Occupation Tax Act |
19 | | and Uniform Penalty
and Interest Act. All of the provisions of |
20 | | Sections 1d, 1e, 1f, 1i, 1j,
1j.1, 1k,
1m,
1n, 1o, 2-6, 2-12, |
21 | | 2-54, 2a, 2b, 2c, 3, 4 (except that the time limitation |
22 | | provisions
shall run
from the date when the tax is due rather |
23 | | than from the date when gross
receipts are received), 5 |
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1 | | (except that the time limitation provisions on
the issuance of |
2 | | notices of tax liability shall run from the date when the
tax |
3 | | is due rather than from the date when gross receipts are |
4 | | received and
except that in the case of a failure to file a |
5 | | return required by this Act, no
notice of tax liability shall |
6 | | be issued on and after each July 1 and January 1
covering tax |
7 | | due with that return during any month or period more than 6 |
8 | | years
before that July 1 or January 1, respectively), 5a,
5b, |
9 | | 5c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 5m, 5n, 7, 8, 9, 10, 11 and |
10 | | 12 of
the Retailers' Occupation Tax Act and Section 3-7 of the |
11 | | Uniform
Penalty and Interest Act, which are not inconsistent |
12 | | with this Act,
shall apply, as far as practicable, to the |
13 | | subject matter of this Act to
the same extent as if such |
14 | | provisions were included herein.
|
15 | | (Source: P.A. 102-700, eff. 4-19-22.)
|
16 | | Section 85-10. The Service Use Tax Act is amended by |
17 | | changing Section 12 as follows:
|
18 | | (35 ILCS 110/12) (from Ch. 120, par. 439.42)
|
19 | | Sec. 12. Applicability of Retailers' Occupation Tax Act |
20 | | and Uniform
Penalty and Interest Act. All of the provisions of |
21 | | Sections 1d, 1e, 1f, 1i,
1j, 1j.1, 1k, 1m,
1n, 1o, 2-6, 2-12, |
22 | | 2-54, 2a, 2b, 2c, 3 (except as to the disposition by the |
23 | | Department
of the
money collected under this Act), 4 (except |
24 | | that the time limitation
provisions shall run from the date |
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1 | | when gross receipts are received), 5
(except that the time |
2 | | limitation provisions on the issuance of notices of
tax |
3 | | liability shall run from the date when the tax is due rather |
4 | | than from
the date when gross receipts are received and except |
5 | | that in the case of a
failure to file a return required by this |
6 | | Act, no notice of tax liability shall
be issued on and after |
7 | | July 1 and January 1 covering tax due with that return
during |
8 | | any month or period more than 6 years before that July 1 or |
9 | | January
1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g,
5j, 5k, |
10 | | 5l, 5m, 5n, 6d, 7, 8, 9, 10, 11 and 12 of the Retailers' |
11 | | Occupation Tax Act which
are not inconsistent with this Act, |
12 | | and Section 3-7 of the Uniform
Penalty and Interest Act, shall |
13 | | apply, as far as practicable, to
the subject matter of this Act |
14 | | to the same extent as if such provisions
were included herein.
|
15 | | (Source: P.A. 102-700, eff. 4-19-22.)
|
16 | | Section 85-15. The Service Occupation Tax Act is amended |
17 | | by changing Section 12 as follows:
|
18 | | (35 ILCS 115/12) (from Ch. 120, par. 439.112)
|
19 | | Sec. 12. All of the provisions of Sections 1d, 1e, 1f, 1i, |
20 | | 1j, 1j.1, 1k,
1m,
1n, 1o, 2-6, 2-12, 2-54, 2a, 2b, 2c, 3 |
21 | | (except as to the disposition by the Department
of the
tax |
22 | | collected under this Act), 4 (except that the time limitation
|
23 | | provisions shall run from the date when the tax is due rather |
24 | | than from the
date when gross receipts are received), 5 |
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1 | | (except that the time limitation
provisions on the issuance of |
2 | | notices of tax liability shall run from the
date when the tax |
3 | | is due rather than from the date when gross receipts are
|
4 | | received), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 5m, 5n, 6d, |
5 | | 7, 8, 9, 10, 11 and
12 of the "Retailers' Occupation Tax Act" |
6 | | which are not inconsistent with this
Act, and Section 3-7 of |
7 | | the Uniform Penalty and Interest Act shall
apply, as far as |
8 | | practicable, to the subject matter of this Act
to the same |
9 | | extent as if such provisions were included herein.
|
10 | | (Source: P.A. 102-700, eff. 4-19-22.)
|
11 | | ARTICLE 90. MUNICIPAL USE AND OCCUPATION TAXES |
12 | | Section 90-5. The Illinois Municipal Code is amended by |
13 | | changing Sections 8-11-1.4 and 8-11-1.5 as follows:
|
14 | | (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
|
15 | | Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation |
16 | | Tax Act. The
corporate authorities of a non-home rule |
17 | | municipality may impose a
tax upon all persons engaged, in |
18 | | such municipality, in the business of
making sales of service |
19 | | for expenditure on
public infrastructure or for property tax |
20 | | relief or both as defined in
Section 8-11-1.2 if approved by
|
21 | | referendum as provided in Section 8-11-1.1, of the selling |
22 | | price of
all tangible personal property transferred by such |
23 | | servicemen either in
the form of tangible personal property or |
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1 | | in the form of real estate as
an incident to a sale of service.
|
2 | | If the tax is approved by referendum on or after July 14, 2010 |
3 | | (the effective date of Public Act 96-1057), the corporate |
4 | | authorities of a non-home rule municipality may, until |
5 | | December 31, 2030 December 31, 2020 , use the proceeds of the |
6 | | tax for expenditure on municipal operations, in addition to or |
7 | | in lieu of any expenditure on public infrastructure or for |
8 | | property tax relief. The tax imposed may not be more than 1% |
9 | | and may be imposed only in
1/4% increments. The tax may not be |
10 | | imposed on tangible personal property taxed at the 1% rate |
11 | | under the Service Occupation Tax Act (or at the 0% rate imposed |
12 | | under this amendatory Act of the 102nd General Assembly). |
13 | | Beginning December 1, 2019, this tax is not imposed on sales of |
14 | | aviation fuel unless the tax revenue is expended for |
15 | | airport-related purposes. If a municipality does not have an |
16 | | airport-related purpose to which it dedicates aviation fuel |
17 | | tax revenue, then aviation fuel is excluded from the tax. Each |
18 | | municipality must comply with the certification requirements |
19 | | for airport-related purposes under Section 2-22 of the |
20 | | Retailers' Occupation Tax Act. For purposes of this Section, |
21 | | "airport-related purposes" has the meaning ascribed in Section |
22 | | 6z-20.2 of the State Finance Act. This exclusion for aviation |
23 | | fuel only applies for so long as the revenue use requirements |
24 | | of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the |
25 | | municipality.
The tax imposed by a municipality
pursuant to |
26 | | this Section and all civil penalties that may be assessed as
an |
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1 | | incident thereof shall be collected and enforced by the State
|
2 | | Department of Revenue. The certificate of registration which |
3 | | is issued
by the Department to a retailer under the Retailers' |
4 | | Occupation Tax
Act or under the Service Occupation Tax Act |
5 | | shall permit
such registrant to engage in a business which is |
6 | | taxable under any
ordinance or resolution enacted pursuant to |
7 | | this Section without
registering separately with the |
8 | | Department under such ordinance or
resolution or under this |
9 | | Section. The Department shall have full power
to administer |
10 | | and enforce this Section; to collect all taxes and
penalties |
11 | | due hereunder; to dispose of taxes and penalties so collected
|
12 | | in the manner hereinafter provided, and to determine all |
13 | | rights to
credit memoranda arising on account of the erroneous |
14 | | payment of tax or
penalty hereunder. In the administration of, |
15 | | and compliance with, this
Section the Department and persons |
16 | | who are subject to this Section
shall have the same rights, |
17 | | remedies, privileges, immunities, powers and
duties, and be |
18 | | subject to the same conditions, restrictions, limitations,
|
19 | | penalties and definitions of terms, and employ the same modes |
20 | | of procedure,
as are prescribed in Sections 1a-1, 2, 2a, 3 |
21 | | through 3-50 (in respect to
all provisions therein other than |
22 | | the State rate of tax), 4 (except that
the reference to the |
23 | | State shall be to the taxing municipality), 5, 7, 8
(except |
24 | | that the jurisdiction to which the tax shall be a debt to the
|
25 | | extent indicated in that Section 8 shall be the taxing |
26 | | municipality), 9
(except as to the disposition of taxes and |
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1 | | penalties collected, and except
that the returned merchandise |
2 | | credit for this municipal tax may not be
taken against any |
3 | | State tax, and except that the retailer's discount is not |
4 | | allowed for taxes paid on aviation fuel that are subject to the |
5 | | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. |
6 | | 47133), 10, 11, 12 (except the reference therein to
Section 2b |
7 | | of the Retailers' Occupation Tax Act), 13 (except that any
|
8 | | reference to the State shall mean the taxing municipality), |
9 | | the first
paragraph of Section 15, 16, 17, 18, 19 and 20 of the |
10 | | Service Occupation
Tax Act and Section 3-7 of the Uniform |
11 | | Penalty and Interest Act, as fully
as if those provisions were |
12 | | set forth herein.
|
13 | | No municipality may impose a tax under this Section unless |
14 | | the municipality
also imposes a tax at the same rate under |
15 | | Section 8-11-1.3 of this Code.
|
16 | | Persons subject to any tax imposed pursuant to the |
17 | | authority granted
in this Section may reimburse themselves for |
18 | | their serviceman's tax
liability hereunder by separately |
19 | | stating such tax as an additional
charge, which charge may be |
20 | | stated in combination, in a single amount,
with State tax |
21 | | which servicemen are authorized to collect under the
Service |
22 | | Use Tax Act, pursuant to such bracket schedules as the
|
23 | | Department may prescribe.
|
24 | | Whenever the Department determines that a refund should be |
25 | | made under
this Section to a claimant instead of issuing |
26 | | credit memorandum, the
Department shall notify the State |
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1 | | Comptroller, who shall cause the
order to be drawn for the |
2 | | amount specified, and to the person named,
in such |
3 | | notification from the Department. Such refund shall be paid by
|
4 | | the State Treasurer out of the municipal retailers' occupation |
5 | | tax fund or the Local Government Aviation Trust Fund, as |
6 | | appropriate.
|
7 | | Except as otherwise provided in this paragraph, the |
8 | | Department shall forthwith pay over to the State Treasurer,
ex |
9 | | officio, as trustee, all taxes and penalties collected |
10 | | hereunder for deposit into the municipal retailers' occupation |
11 | | tax fund. Taxes and penalties collected on aviation fuel sold |
12 | | on or after December 1, 2019, shall be immediately paid over by |
13 | | the Department to the State Treasurer, ex officio, as trustee, |
14 | | for deposit into the Local Government Aviation Trust Fund. The |
15 | | Department shall only pay moneys into the Local Government |
16 | | Aviation Trust Fund under this Section for so long as the |
17 | | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. |
18 | | 47133 are binding on the municipality. |
19 | | As soon as possible after the first day of each month, |
20 | | beginning January 1, 2011, upon certification of the |
21 | | Department of Revenue, the Comptroller shall order |
22 | | transferred, and the Treasurer shall transfer, to the STAR |
23 | | Bonds Revenue Fund the local sales tax increment, as defined |
24 | | in the Innovation Development and Economy Act, collected under |
25 | | this Section during the second preceding calendar month for |
26 | | sales within a STAR bond district. |
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1 | | After the monthly transfer to the STAR Bonds Revenue Fund, |
2 | | on
or before the 25th day of each calendar month, the |
3 | | Department shall
prepare and certify to the Comptroller the |
4 | | disbursement of stated sums
of money to named municipalities, |
5 | | the municipalities to be those from
which suppliers and |
6 | | servicemen have paid taxes or penalties hereunder to
the |
7 | | Department during the second preceding calendar month. The |
8 | | amount
to be paid to each municipality shall be the amount (not |
9 | | including credit
memoranda and not including taxes and |
10 | | penalties collected on aviation fuel sold on or after December |
11 | | 1, 2019) collected hereunder during the second preceding |
12 | | calendar
month by the Department, and not including an amount |
13 | | equal to the amount
of refunds made during the second |
14 | | preceding calendar month by the
Department on behalf of such |
15 | | municipality, and not including any amounts that are |
16 | | transferred to the STAR Bonds Revenue Fund, less 1.5% of the |
17 | | remainder, which the Department shall transfer into the Tax |
18 | | Compliance and Administration Fund. The Department, at the |
19 | | time of each monthly disbursement to the municipalities, shall |
20 | | prepare and certify to the State Comptroller the amount to be |
21 | | transferred into the Tax Compliance and Administration Fund |
22 | | under this Section. Within 10 days
after receipt, by the |
23 | | Comptroller, of the disbursement certification to
the |
24 | | municipalities, the General Revenue Fund, and the Tax |
25 | | Compliance and Administration Fund provided for in this
|
26 | | Section to be given to the Comptroller by the Department, the
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1 | | Comptroller shall cause the orders to be drawn for the |
2 | | respective
amounts in accordance with the directions contained |
3 | | in such
certification.
|
4 | | The Department of Revenue shall implement Public Act |
5 | | 91-649 so as to collect the tax on and after January 1, 2002.
|
6 | | Nothing in this Section shall be construed to authorize a
|
7 | | municipality to impose a tax upon the privilege of engaging in |
8 | | any
business which under the constitution of the United States |
9 | | may not be
made the subject of taxation by this State.
|
10 | | As used in this Section, "municipal" or "municipality" |
11 | | means or refers to
a city, village or incorporated town, |
12 | | including an incorporated town which
has superseded a civil |
13 | | township.
|
14 | | This Section shall be known and may be cited as the |
15 | | "Non-Home Rule Municipal
Service Occupation Tax Act".
|
16 | | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; |
17 | | 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
|
18 | | (65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5)
|
19 | | Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The |
20 | | corporate
authorities of a non-home rule municipality may |
21 | | impose a
tax upon the privilege of using, in such |
22 | | municipality, any item of tangible
personal property which is |
23 | | purchased at retail from a retailer, and which is
titled or |
24 | | registered with an agency of this State's government, based on |
25 | | the selling price of such tangible personal
property, as |
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1 | | "selling price" is defined in the Use Tax Act, for expenditure
|
2 | | on public infrastructure or for property tax relief or both as |
3 | | defined in
Section 8-11-1.2, if approved by
referendum as |
4 | | provided in Section 8-11-1.1. If the tax is approved by |
5 | | referendum on or after the effective date of this amendatory |
6 | | Act of the 96th General Assembly, the corporate authorities of |
7 | | a non-home rule municipality may, until December 31, 2030 |
8 | | December 31, 2020 , use the proceeds of the tax for expenditure |
9 | | on municipal operations, in addition to or in lieu of any |
10 | | expenditure on public infrastructure or for property tax |
11 | | relief. The tax imposed may not be more
than 1% and may be |
12 | | imposed only in 1/4% increments. Such tax shall
be
collected |
13 | | from persons whose Illinois address for title or registration
|
14 | | purposes is given as being in such municipality. Such tax |
15 | | shall be
collected by the municipality imposing such tax.
A |
16 | | non-home rule municipality may not
impose and collect the tax |
17 | | prior to January 1, 2002.
|
18 | | This Section shall be known and may be cited as the |
19 | | "Non-Home Rule
Municipal Use Tax Act".
|
20 | | (Source: P.A. 96-1057, eff. 7-14-10; 97-837, eff. 7-20-12.)
|
21 | | ARTICLE 95. VOLUNTEER EMERGENCY WORKERS |
22 | | Section 95-5. The Illinois Administrative Procedure Act is |
23 | | amended by adding Section 5-45.36 as follows: |
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1 | | (5 ILCS 100/5-45.36 new) |
2 | | Sec. 5-45.36. Emergency rulemaking. To provide for the |
3 | | expeditious and timely implementation of Section 234 of the |
4 | | Illinois Income Tax Act, emergency rules implementing that |
5 | | Section may be adopted in accordance with Section 5-45 by the |
6 | | Department of Revenue. The adoption of emergency rules |
7 | | authorized by Section 5-45 and this Section is deemed to be |
8 | | necessary for the public interest, safety, and welfare. |
9 | | This Section is repealed one year after the effective date |
10 | | of this amendatory Act of the 103rd General Assembly. |
11 | | Section 95-10. The Illinois Income Tax Act is amended by |
12 | | adding Section 234 as follows: |
13 | | (35 ILCS 5/234 new) |
14 | | Sec. 234. Volunteer emergency workers. |
15 | | (a) For taxable years beginning on or after January 1, |
16 | | 2023 and beginning prior to January 1, 2028, each individual |
17 | | who (i) serves as a volunteer emergency worker for at least 9 |
18 | | months during the taxable year and (ii) does not receive |
19 | | compensation for his or her services as a volunteer emergency |
20 | | worker of more than $5,000 for the taxable year may apply to |
21 | | the Department for a credit against the taxes imposed by |
22 | | subsections (a) and (b) of Section 201. The amount of the |
23 | | credit shall be $500 per eligible individual. The aggregate |
24 | | amount of all tax credits
awarded by the Department under this |
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1 | | Section in any calendar year
may not exceed $5,000,000. |
2 | | Credits shall be awarded on a first-come first-served basis. |
3 | | (b) A credit under this Section may not reduce a |
4 | | taxpayer's liability to less than zero. |
5 | | (c) By January 24 of each year, the Office of the State |
6 | | Fire Marshal shall provide the Department of Revenue an |
7 | | electronic file with the names of volunteer emergency workers |
8 | | who (i) volunteered for at least 9 months during the |
9 | | immediately preceding calendar year, (ii) did not receive |
10 | | compensation for their services as a volunteer emergency |
11 | | worker of more than $5,000 during the immediately preceding |
12 | | calendar year, and (iii) are registered with the Office of the |
13 | | State Fire Marshal as of January 12 of the current year as |
14 | | meeting the requirements of items (i) and (ii) for the |
15 | | immediately preceding calendar year. The chief of the fire |
16 | | department, fire protection district, or fire protection |
17 | | association shall be responsible for notifying the State Fire |
18 | | Marshal of the volunteer emergency workers who met the |
19 | | requirements of items (i) and (ii) during the immediately |
20 | | preceding calendar year by January 12 of the current year. |
21 | | Notification shall be required in the format required by the |
22 | | State Fire Marshal. The chief of the fire department, fire |
23 | | protection district, or fire protection association shall be |
24 | | responsible for the verification and accuracy of their |
25 | | submission to the State Fire Marshal under this subsection. |
26 | | (d) As used in this Section, "volunteer emergency worker" |
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1 | | means a person who serves as a member, other than on a |
2 | | full-time career basis, of a fire department, fire protection |
3 | | district, or fire protection association that has a Fire |
4 | | Department Identification Number issued by the Office of the |
5 | | State Fire Marshal and who does not serve as a member on a |
6 | | full-time career basis for another fire department, fire |
7 | | protection district, fire protection association, or |
8 | | governmental entity. |
9 | | (e) The Department shall adopt rules to implement and |
10 | | administer this Section, including rules concerning |
11 | | applications for the tax credit. |
12 | | ARTICLE 100. USE AND OCCUPATION TAX ASSESSMENTS |
13 | | Section 100-5. The Retailers' Occupation Tax Act is |
14 | | amended by changing Section 4 as follows:
|
15 | | (35 ILCS 120/4) (from Ch. 120, par. 443)
|
16 | | Sec. 4.
As soon as practicable after any return is filed, |
17 | | the Department
shall examine such return and shall, if |
18 | | necessary, correct such return
according to its best judgment |
19 | | and information. If the correction
of a return results in an |
20 | | amount of tax that is understated on the taxpayer's
return due |
21 | | to a mathematical error, the Department shall notify the |
22 | | taxpayer
that the amount of tax in excess of that shown on the |
23 | | return is due and has
been assessed.
The term "mathematical |
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1 | | error" means
arithmetic errors or incorrect computations on |
2 | | the return or supporting
schedules.
No such notice of |
3 | | additional tax due shall be issued on and
after each July 1 and |
4 | | January 1 covering gross receipts received during any
month or |
5 | | period of time more than 3 years prior to such July 1 and |
6 | | January 1,
respectively. Such notice of additional tax due |
7 | | shall not be considered a
notice of tax liability nor shall the |
8 | | taxpayer have any right of protest.
In the event that the |
9 | | return is corrected for any reason other than
a mathematical |
10 | | error, any return so corrected
by the Department shall be |
11 | | prima facie correct and shall be prima facie
evidence of the |
12 | | correctness of the amount of tax due, as shown therein. In
|
13 | | correcting transaction by transaction reporting returns |
14 | | provided for in
Section 3 of this Act, it shall be permissible |
15 | | for the Department to show
a single corrected return figure |
16 | | for any given period of a calendar month
instead of having to |
17 | | correct each transaction by transaction return form
|
18 | | individually and having to show a corrected return figure for |
19 | | each of such
transaction by transaction return forms. In |
20 | | making a correction of
transaction by transaction, monthly or |
21 | | quarterly returns covering a period
of 6 months or more, it |
22 | | shall be permissible for the Department to show a
single |
23 | | corrected return figure for any given 6-month period.
|
24 | | Instead of requiring the person filing such return to file |
25 | | an amended
return, the Department may simply notify him of the |
26 | | correction or
corrections it has made.
|
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1 | | Proof of such correction by the Department may be made at |
2 | | any hearing
before the Department or the Illinois Independent |
3 | | Tax Tribunal or in any legal proceeding by a reproduced copy or
|
4 | | computer print-out of the Department's record relating thereto |
5 | | in the name
of the Department under the certificate of the |
6 | | Director of Revenue. If
reproduced copies of the Department's |
7 | | records are offered as proof of such
correction, the Director |
8 | | must certify that those copies are true and exact
copies of |
9 | | records on file with the Department. If computer print-outs of
|
10 | | the Department's records are offered as proof of such |
11 | | correction, the
Director must certify that those computer |
12 | | print-outs are true and exact
representations of records |
13 | | properly entered into standard electronic
computing equipment, |
14 | | in the regular course of the Department's business, at
or |
15 | | reasonably near the time of the occurrence of the facts |
16 | | recorded, from
trustworthy and reliable information. Such |
17 | | certified reproduced copy or
certified computer print-out |
18 | | shall without further proof, be admitted into
evidence before |
19 | | the Department or in any legal proceeding and shall be
prima |
20 | | facie proof of the correctness of the amount of tax due, as |
21 | | shown therein.
|
22 | | If the tax computed upon the basis of the gross receipts as |
23 | | fixed by the
Department is greater than the amount of tax due |
24 | | under the return or
returns as filed, the Department shall (or |
25 | | if the tax or any part thereof
that is admitted to be due by a |
26 | | return or returns, whether filed on time or
not, is not paid, |
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1 | | the Department may) issue the taxpayer a notice of tax
|
2 | | liability for the amount of tax claimed by the Department to be |
3 | | due,
together with a penalty in an amount determined in |
4 | | accordance with
Section 3-3 of the Uniform Penalty and |
5 | | Interest Act. Provided, that if the
incorrectness of any |
6 | | return or returns as determined by the Department is
due to |
7 | | negligence or fraud, said penalty shall be in an amount |
8 | | determined
in accordance with Section 3-5 or Section 3-6 of |
9 | | the Uniform Penalty and
Interest Act, as the case may be. If |
10 | | the notice of tax liability is not
based on a correction of the |
11 | | taxpayer's return or returns, but is based on
the taxpayer's |
12 | | failure to pay all or a part of the tax admitted by his
return |
13 | | or returns (whether filed on time or not) to be due, such |
14 | | notice of
tax liability shall be prima facie correct and shall |
15 | | be prima facie
evidence of the correctness of the amount of tax |
16 | | due, as shown therein.
|
17 | | Proof of such notice of tax liability by the Department |
18 | | may be made at
any hearing before the Department or the |
19 | | Illinois Independent Tax Tribunal or in any legal proceeding |
20 | | by a
reproduced copy of the Department's record relating |
21 | | thereto in the name of
the Department under the certificate of |
22 | | the Director of Revenue. Such
reproduced copy shall without |
23 | | further proof, be admitted into evidence
before the Department |
24 | | or in any legal proceeding and shall be prima facie
proof of |
25 | | the correctness of the amount of tax due, as shown therein.
|
26 | | If the person filing any return dies or becomes a person |
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1 | | under legal
disability at any time before the Department |
2 | | issues its notice of tax
liability, such notice shall be |
3 | | issued to the administrator, executor or
other legal |
4 | | representative, as such, of such person.
|
5 | | Except in case of a fraudulent return, or in the case of an |
6 | | amended return
(where a notice of tax liability may be issued |
7 | | on or after each January
1 and July 1 for an amended return |
8 | | filed not more than 3 years prior to
such January 1 or July 1, |
9 | | respectively), no notice of tax
liability shall be issued on |
10 | | and after each January 1 and July 1 covering
gross receipts |
11 | | received during any month or period of time more than 3
years |
12 | | prior to such January 1 and July 1, respectively. If, before |
13 | | the
expiration of the time prescribed in this Section for the |
14 | | issuance of a
notice of tax liability, both the Department and |
15 | | the taxpayer have
consented in writing to its issuance after |
16 | | such time, such notice may be
issued at any time prior to the |
17 | | expiration of the period agreed upon. The
period so agreed |
18 | | upon may be extended by subsequent agreements in writing
made |
19 | | before the expiration of the period previously agreed upon. |
20 | | The foregoing
limitations upon the issuance of a notice of tax |
21 | | liability shall not apply
to the issuance of a notice of tax |
22 | | liability with respect to any period of
time prior thereto in |
23 | | cases where the Department has, within the period of
|
24 | | limitation then provided, notified the person making the |
25 | | return of a notice
of tax liability even though such return, |
26 | | with which the tax that was shown
by such return to be due was |
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1 | | paid when the return was filed, had not been
corrected by the |
2 | | Department in the manner required herein prior to the
issuance |
3 | | of such notice, but in no case shall the amount of any such |
4 | | notice
of tax liability for any period otherwise barred by |
5 | | this Act exceed for
such period the amount shown in the notice |
6 | | of tax liability theretofore issued.
|
7 | | If, when a tax or penalty under this Act becomes due and |
8 | | payable, the
person alleged to be liable therefor is out of the |
9 | | State, the notice of tax
liability may be issued within the |
10 | | times herein limited after his coming
into or return to the |
11 | | State; and if, after the tax or penalty under this
Act becomes |
12 | | due and payable, the person alleged to be liable therefor
|
13 | | departs from and remains out of the State, the time of his or |
14 | | her absence is no
part of the time limited for the issuance of |
15 | | the notice of tax liability;
but the foregoing provisions |
16 | | concerning absence from the State shall not
apply to any case |
17 | | in which, at the time when a tax or penalty becomes due
under |
18 | | this Act, the person allegedly liable therefor is not a |
19 | | resident of
this State.
|
20 | | The time limitation period on the Department's right to |
21 | | issue a notice
of tax liability shall not run during any period |
22 | | of time in which the Order
of any Court has the effect of |
23 | | enjoining or restraining the Department from
issuing the |
24 | | notice of tax liability.
|
25 | | If such person or legal representative shall within 60 |
26 | | days after such
notice of tax liability file a protest to said |
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1 | | notice of tax liability with the Department and
request a |
2 | | hearing thereon, the Department shall give notice to such |
3 | | person
or legal representative of the time and place fixed for |
4 | | such hearing and
shall hold a hearing in conformity with the |
5 | | provisions of this Act, and
pursuant thereto shall issue to |
6 | | such person or legal representative a final
assessment for the |
7 | | amount found to be due as a result of such hearing. On or after |
8 | | July 1, 2013, protests concerning matters that are subject to |
9 | | the jurisdiction of the Illinois Independent Tax Tribunal |
10 | | shall be filed with the Illinois Independent Tax Tribunal in |
11 | | accordance with the Illinois Independent Tax Tribunal Act of |
12 | | 2012, and hearings concerning those matters shall be held |
13 | | before the Tribunal in accordance with that Act. The Tribunal |
14 | | shall give notice to such
person of the time and place fixed |
15 | | for such hearing and shall hold a
hearing. With respect to |
16 | | protests filed with the Department prior to July 1, 2013 that |
17 | | would otherwise be subject to the jurisdiction of the Illinois |
18 | | Independent Tax Tribunal, the taxpayer may elect to be subject |
19 | | to the provisions of the Illinois Independent Tax Tribunal Act |
20 | | of 2012 at any time on or after July 1, 2013, but not later |
21 | | than 30 days after the date on which the protest was filed. If |
22 | | made, the election shall be irrevocable.
|
23 | | If a protest to the notice of tax liability and a request |
24 | | for a hearing
thereon is not filed within 60 days after such |
25 | | notice, such notice of tax
liability shall become final |
26 | | without the necessity of a final assessment
being issued and |
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1 | | shall be deemed to be a final assessment.
|
2 | | Notwithstanding any other provisions of this Act, any |
3 | | amount paid as tax or in respect of tax paid under this Act, |
4 | | other than amounts paid as quarter-monthly payments, shall be |
5 | | deemed assessed upon the date of receipt of payment. |
6 | | After the issuance of a final assessment, or a notice of |
7 | | tax liability
which becomes final without the necessity of |
8 | | actually issuing a final
assessment as hereinbefore provided, |
9 | | the Department, at any time before
such assessment is reduced |
10 | | to judgment, may (subject to rules of the
Department) grant a |
11 | | rehearing (or grant departmental review and hold an
original |
12 | | hearing if no previous hearing in the matter has been held) |
13 | | upon
the application of the person aggrieved. Pursuant to such |
14 | | hearing or
rehearing, the Department shall issue a revised |
15 | | final assessment to such
person or his legal representative |
16 | | for the amount found to be due as a
result of such hearing or |
17 | | rehearing.
|
18 | | (Source: P.A. 97-1129, eff. 8-28-12.)
|
19 | | Section 100-10. The Cigarette Machine Operators' |
20 | | Occupation Tax Act is amended by changing Section 1-45 as |
21 | | follows: |
22 | | (35 ILCS 128/1-45)
|
23 | | Sec. 1-45. Examination and correction of returns. |
24 | | (a) As soon as practicable after any return is filed, the |
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1 | | Department shall examine that return and shall correct the |
2 | | return according to its best judgment and information, which |
3 | | return so corrected by the Department shall be prima facie |
4 | | correct and shall be prima facie evidence of the correctness |
5 | | of the amount of tax due, as shown on the corrected return. |
6 | | Instead of requiring the cigarette machine operator to file an |
7 | | amended return, the Department may simply notify the cigarette |
8 | | machine operator of the correction or corrections it has made. |
9 | | Proof of the correction by the Department may be made at any |
10 | | hearing before the Department or in any legal proceeding by a |
11 | | reproduced copy of the Department's record relating thereto in |
12 | | the name of the Department under the certificate of the |
13 | | Director of Revenue. Such reproduced copy shall, without |
14 | | further proof, be admitted into evidence before the Department |
15 | | or in any legal proceeding and shall be prima facie proof of |
16 | | the correctness of the amount of tax due, as shown on the |
17 | | reproduced copy. If the Department finds that any amount of |
18 | | tax is due from the cigarette machine operator, the Department |
19 | | shall issue the cigarette machine operator a notice of tax |
20 | | liability for the amount of tax claimed by the Department to be |
21 | | due, together with a penalty in an amount determined in |
22 | | accordance with Sections 3-3, 3-5 and 3-6 of the Uniform |
23 | | Penalty and Interest Act. If, in administering the provisions |
24 | | of this Act, comparison of a return or returns of a cigarette |
25 | | machine operator with the books, records, and inventories of |
26 | | such cigarette machine operator discloses a deficiency that |
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1 | | cannot be allocated by the Department to a particular month or |
2 | | months, the Department shall issue the cigarette machine |
3 | | operator a notice of tax liability for the amount of tax |
4 | | claimed by the Department to be due for a given period, but |
5 | | without any obligation upon the Department to allocate that |
6 | | deficiency to any particular month or months, together with a |
7 | | penalty in an amount determined in accordance with Sections |
8 | | 3-3, 3-5, and 3-6 of the Uniform Penalty and Interest Act, |
9 | | under which circumstances the aforesaid notice of tax |
10 | | liability shall be prima facie correct and shall be prima |
11 | | facie evidence of the correctness of the amount of tax due, as |
12 | | shown therein; and proof of such correctness may be made in |
13 | | accordance with, and the admissibility of a reproduced copy of |
14 | | such notice of tax liability shall be governed by, all the |
15 | | provisions of this Act applicable to corrected returns. If any |
16 | | cigarette machine operator filing any return dies or becomes a |
17 | | person under legal disability at any time before the |
18 | | Department issues its notice of tax liability, such notice |
19 | | shall be issued to the administrator, executor, or other legal |
20 | | representative of the cigarette machine operator. |
21 | | (b) If, within 60 days after such notice of tax liability, |
22 | | the cigarette machine operator or his or her legal |
23 | | representative files a written protest to such notice of tax |
24 | | liability and requests a hearing thereon, the Department shall |
25 | | give notice to such cigarette machine operator or legal |
26 | | representative of the time and place fixed for such hearing, |
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1 | | and shall hold a hearing in conformity with the provisions of |
2 | | this Act, and pursuant thereto shall issue a final assessment |
3 | | to such cigarette machine operator or legal representative for |
4 | | the amount found to be due as a result of such hearing. If a |
5 | | written protest to the notice of tax liability and a request |
6 | | for a hearing thereon is not filed within 60 days after such |
7 | | notice of tax liability, such notice of tax liability shall |
8 | | become final without the necessity of a final assessment being |
9 | | issued and shall be deemed to be a final assessment. |
10 | | (c) In case of failure to pay the tax, or any portion |
11 | | thereof, or any penalty provided for in this Act, when due, the |
12 | | Department may bring suit to recover the amount of such tax, or |
13 | | portion thereof, or penalty; or, if the taxpayer dies or |
14 | | becomes incompetent, by filing claim therefore against his or |
15 | | her estate; provided that no such action with respect to any |
16 | | tax, or portion thereof, or penalty, shall be instituted more |
17 | | than 2 years after the cause of action accrues, except with the |
18 | | consent of the person from whom such tax or penalty is due. |
19 | | After the expiration of the period within which the person |
20 | | assessed may file an action for judicial review under the |
21 | | Administrative Review Law without such an action being filed, |
22 | | a certified copy of the final assessment or revised final |
23 | | assessment of the Department may be filed with the circuit |
24 | | court of the county in which the taxpayer has his or her |
25 | | principal place of business, or of Sangamon County in those |
26 | | cases in which the taxpayer does not have his or her principal |
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1 | | place of business in this State. The certified copy of the |
2 | | final assessment or revised final assessment shall be |
3 | | accompanied by a certification which recites facts that are |
4 | | sufficient to show that the Department complied with the |
5 | | jurisdictional requirements of the law in arriving at its |
6 | | final assessment or its revised final assessment and that the |
7 | | taxpayer had his or her opportunity for an administrative |
8 | | hearing and for judicial review, whether he or she availed |
9 | | himself or herself of either or both of these opportunities or |
10 | | not. If the court is satisfied that the Department complied |
11 | | with the jurisdictional requirements of the law in arriving at |
12 | | its final assessment or its revised final assessment and that |
13 | | the taxpayer had his or her opportunity for an administrative |
14 | | hearing and for judicial review, whether he or she availed |
15 | | himself or herself of either or both of these opportunities or |
16 | | not, the court shall enter judgment in favor of the Department |
17 | | and against the taxpayer for the amount shown to be due by the |
18 | | final assessment or the revised final assessment, and such |
19 | | judgment shall be filed of record in the court. Such judgment |
20 | | shall bear the rate of interest set in the Uniform Penalty and |
21 | | Interest Act, but otherwise shall have the same effect as |
22 | | other judgments. The judgment may be enforced, and all laws |
23 | | applicable to sales for the enforcement of a judgment shall be |
24 | | applicable to sales made under such judgments. The Department |
25 | | shall file the certified copy of its assessment, as herein |
26 | | provided, with the circuit court within 2 years after such |
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1 | | assessment becomes final except when the taxpayer consents in |
2 | | writing to an extension of such filing period. |
3 | | If, when the cause of action for a proceeding in court |
4 | | accrues against a person, he or she is out of the State, the |
5 | | action may be commenced within the times herein limited, after |
6 | | his or her coming into or returning to the State; and if, after |
7 | | the cause of action accrues, he or she departs from and remains |
8 | | out of the State, the time of his or her absence is no part of |
9 | | the time limited for the commencement of the action; but the |
10 | | foregoing provisions concerning absence from the State shall |
11 | | not apply to any case in which, at the time the cause of action |
12 | | accrues, the party against whom the cause of action accrues is |
13 | | not a resident of this State. The time within which a court |
14 | | action is to be commenced by the Department hereunder shall |
15 | | not run while the taxpayer is a debtor in any proceeding under |
16 | | the federal Bankruptcy Code nor thereafter until 90 days after |
17 | | the Department is notified by such debtor of being discharged |
18 | | in bankruptcy. |
19 | | No claim shall be filed against the estate of any deceased |
20 | | person or a person under legal disability for any tax or |
21 | | penalty or part of either except in the manner prescribed and |
22 | | within the time limited by the Probate Act of 1975. |
23 | | The remedies provided for herein shall not be exclusive, |
24 | | but all remedies available to creditors for the collection of |
25 | | debts shall be available for the collection of any tax or |
26 | | penalty due hereunder. |
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1 | | The collection of tax or penalty by any means provided for |
2 | | herein shall not be a bar to any prosecution under this Act. |
3 | | The certificate of the Director of the Department to the |
4 | | effect that a tax or amount required to be paid by this Act has |
5 | | not been paid, that a return has not been filed, or that |
6 | | information has not been supplied pursuant to the provisions |
7 | | of this Act, shall be prima facie evidence thereof. |
8 | | Notwithstanding any other provisions of this Act, any |
9 | | amount paid as tax or in respect of tax paid under this Act |
10 | | shall be deemed assessed upon the date of receipt of payment. |
11 | | All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f, |
12 | | 5g, 5i and 5j of the Retailers' Occupation Tax Act, which are |
13 | | not inconsistent with this Act, shall apply, as far as |
14 | | practicable, to the subject matter of this Act to the same |
15 | | extent as if such provisions were included herein. References |
16 | | in such incorporated Sections of the Retailers' Occupation Tax |
17 | | Act to retailers, to sellers, or to persons engaged in the |
18 | | business of selling tangible personal property shall mean |
19 | | cigarette machine operator when used in this Act.
|
20 | | (Source: P.A. 97-688, eff. 6-14-12.) |
21 | | Section 100-15. The Cigarette Tax Act is amended by |
22 | | changing Section 9a as follows:
|
23 | | (35 ILCS 130/9a) (from Ch. 120, par. 453.9a)
|
24 | | Sec. 9a. Examination and correction of returns.
|
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1 | | (1) As soon as practicable after any return is filed, the
|
2 | | Department shall examine such return and shall correct such |
3 | | return
according to its best judgment and information, which |
4 | | return so corrected
by the Department shall be prima facie |
5 | | correct and shall be prima facie
evidence of the correctness |
6 | | of the amount of tax due, as shown therein.
Instead of |
7 | | requiring the distributor to file an amended return, the
|
8 | | Department may simply notify the distributor of the correction |
9 | | or
corrections it has made. Proof of such correction by the |
10 | | Department may be
made at any hearing before the Department or |
11 | | in any legal proceeding by a
reproduced copy of the |
12 | | Department's record relating thereto in the name of
the |
13 | | Department under the certificate of the Director of Revenue. |
14 | | Such
reproduced copy shall, without further proof, be admitted |
15 | | into evidence
before the Department or in any legal proceeding |
16 | | and shall be prima facie
proof of the correctness of the amount |
17 | | of tax due, as shown therein. If the
Department finds that any |
18 | | amount of tax is due from the distributor, the
Department |
19 | | shall issue the distributor a notice of tax liability for the
|
20 | | amount of tax claimed by the Department to be due, together |
21 | | with a penalty
in an amount determined in accordance with |
22 | | Sections 3-3, 3-5 and 3-6 of the
Uniform Penalty and Interest |
23 | | Act. If, in administering the provisions of
this Act, |
24 | | comparison of a return or returns of a distributor with the
|
25 | | books, records and inventories of such distributor discloses a |
26 | | deficiency
which cannot be allocated by the Department to a |
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1 | | particular month or
months, the Department shall issue the |
2 | | distributor a notice of tax
liability for the amount of tax |
3 | | claimed by the Department to be due for a
given period, but |
4 | | without any obligation upon the Department to allocate
such |
5 | | deficiency to any particular month or months, together with a |
6 | | penalty
in an amount determined in accordance with Sections |
7 | | 3-3, 3-5 and 3-6 of the
Uniform Penalty and Interest Act, under |
8 | | which circumstances the aforesaid
notice of tax liability |
9 | | shall be prima facie correct and shall be prima
facie evidence |
10 | | of the correctness of the amount of tax due, as shown
therein; |
11 | | and proof of such correctness may be made in accordance with, |
12 | | and
the admissibility of a reproduced copy of such notice of |
13 | | tax liability
shall be governed by, all the provisions of this |
14 | | Act applicable to
corrected returns. If any distributor filing |
15 | | any return dies or becomes a
person under legal disability at |
16 | | any time before the Department issues its
notice of tax |
17 | | liability, such notice shall be issued to the administrator,
|
18 | | executor or other legal representative, as such, of such |
19 | | distributor.
|
20 | | (2) Except as otherwise provided in this Section, if, |
21 | | within 60 days after such notice of tax liability, the
|
22 | | distributor or his or her legal representative files a protest |
23 | | to such
notice of tax liability and requests a hearing |
24 | | thereon, the Department shall
give notice to such distributor |
25 | | or legal representative of the time and place
fixed for such |
26 | | hearing, and shall hold a hearing in conformity with the
|
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1 | | provisions of this Act, and pursuant thereto shall issue a |
2 | | final assessment
to such distributor or legal representative |
3 | | for the amount found to be due
as a result of such hearing. On |
4 | | or after July 1, 2013, protests concerning matters that are |
5 | | subject to the jurisdiction of the Illinois Independent Tax |
6 | | Tribunal shall be filed in accordance with the Illinois |
7 | | Independent Tax Tribunal Act of 2012, and hearings concerning |
8 | | those matters shall be held before the Tribunal in accordance |
9 | | with that Act. With respect to protests filed with the |
10 | | Department prior to July 1, 2013 that would otherwise be |
11 | | subject to the jurisdiction of the Illinois Independent Tax |
12 | | Tribunal, the taxpayer may elect to be subject to the |
13 | | provisions of the Illinois Independent Tax Tribunal Act of |
14 | | 2012 at any time on or after July 1, 2013, but not later than |
15 | | 30 days after the date on which the protest was filed. If made, |
16 | | the election shall be irrevocable. If a protest to the notice |
17 | | of tax liability
and a request for a hearing thereon is not |
18 | | filed within the time allowed by law, such notice of tax |
19 | | liability shall become final
without the necessity of a final |
20 | | assessment being issued and shall be
deemed to be a final |
21 | | assessment.
|
22 | | (3) In case of failure to pay the tax, or any portion |
23 | | thereof, or any
penalty provided for in this Act, when due, the |
24 | | Department may bring suit
to recover the amount of such tax, or |
25 | | portion thereof, or penalty; or, if
the taxpayer dies or |
26 | | becomes incompetent, by filing claim therefor against
his |
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1 | | estate; provided that no such action with respect to any tax, |
2 | | or portion
thereof, or penalty, shall be instituted more than |
3 | | 2 years after the cause
of action accrues, except with the |
4 | | consent of the person from whom such tax
or penalty is due.
|
5 | | After the expiration of the period within which the person |
6 | | assessed may
file an action for judicial review under the |
7 | | Administrative Review Law
without such an action being filed, |
8 | | a certified copy of the final assessment
or revised final |
9 | | assessment of the Department may be filed with the Circuit
|
10 | | Court of the county in which the taxpayer has his or her |
11 | | principal place of
business, or of Sangamon County in those |
12 | | cases in which the taxpayer does
not have his principal place |
13 | | of business in this State. The certified copy
of the final |
14 | | assessment or revised final assessment shall be accompanied by
|
15 | | a certification which recites facts that are sufficient to |
16 | | show that the
Department complied with the jurisdictional |
17 | | requirements of the Law in
arriving at its final assessment or |
18 | | its revised final assessment and that
the taxpayer had his or |
19 | | her opportunity for an administrative hearing and for
judicial |
20 | | review, whether he availed himself or herself of either or |
21 | | both of
these opportunities or not. If the court is satisfied |
22 | | that the Department
complied with the jurisdictional |
23 | | requirements of the Law in arriving at its
final assessment or |
24 | | its revised final assessment and that the taxpayer had
his or |
25 | | her opportunity for an administrative hearing and for judicial |
26 | | review,
whether he or she availed himself or herself of either |
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1 | | or both of
these opportunities or not, the court shall enter |
2 | | judgment in favor of the
Department and against the taxpayer |
3 | | for the amount shown to be due by the
final assessment or the |
4 | | revised final assessment, and such judgment shall
be filed of |
5 | | record in the court. Such judgment shall bear the rate of
|
6 | | interest set in the Uniform Penalty and Interest Act, but |
7 | | otherwise shall
have the same effect as other judgments. The |
8 | | judgment may be enforced, and
all laws applicable to sales for |
9 | | the enforcement of a judgment shall be
applicable to sales |
10 | | made under such judgments. The Department shall file
the |
11 | | certified copy of its assessment, as herein provided, with the |
12 | | Circuit
Court within 2 years after such assessment becomes |
13 | | final except when the
taxpayer consents in writing to an |
14 | | extension of such filing period.
|
15 | | If, when the cause of action for a proceeding in court |
16 | | accrues against a
person, he or she is out of the State, the |
17 | | action may be commenced within the
times herein limited, after |
18 | | his or her coming into or return to the State;
and if, after |
19 | | the cause of action accrues, he or she departs from and
remains |
20 | | out of the State, the time of his or her absence is no part of |
21 | | the
time limited for the commencement of the action; but the |
22 | | foregoing
provisions concerning absence from the State shall |
23 | | not apply to any case in
which, at the time the cause of action |
24 | | accrues, the party against whom the
cause of action accrues is |
25 | | not a resident of this State. The time within
which a court |
26 | | action is to be commenced by the Department hereunder shall
|
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1 | | not run while the taxpayer is a debtor in any proceeding under |
2 | | the Federal
Bankruptcy Act nor thereafter until 90 days after |
3 | | the Department is
notified by such debtor of being discharged |
4 | | in bankruptcy.
|
5 | | No claim shall be filed against the estate of any deceased |
6 | | person or
a person under legal disability for any tax or |
7 | | penalty or part of either
except in the manner prescribed and |
8 | | within the time limited by the Probate
Act of 1975, as amended.
|
9 | | The remedies provided for herein shall not be exclusive, |
10 | | but all
remedies available to creditors for the collection of |
11 | | debts shall be
available for the collection of any tax or |
12 | | penalty due hereunder.
|
13 | | The collection of tax or penalty by any means provided for |
14 | | herein shall
not be a bar to any prosecution under this Act.
|
15 | | The certificate of the Director of the Department to the |
16 | | effect that a
tax or amount required to be paid by this Act has |
17 | | not been paid, that a
return has not been filed, or that |
18 | | information has not been supplied
pursuant to the provisions |
19 | | of this Act, shall be prima facie evidence
thereof.
|
20 | | Notwithstanding any other provisions of this Act, any |
21 | | amount paid as tax or in respect of tax paid under this Act |
22 | | shall be deemed assessed upon the date of receipt of payment. |
23 | | All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f, |
24 | | 5g, 5i and
5j of the Retailers' Occupation Tax Act, which are |
25 | | not inconsistent
with this Act, and Section 3-7 of the Uniform |
26 | | Penalty and Interest Act
shall apply, as far as practicable, |
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1 | | to the subject matter of
this Act to the same extent as if such |
2 | | provisions were included herein.
References in such |
3 | | incorporated Sections of the "Retailers' Occupation Tax
Act" |
4 | | to retailers, to sellers or to persons engaged in the business |
5 | | of
selling tangible personal property shall mean distributors |
6 | | when used in
this Act.
|
7 | | (Source: P.A. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13.)
|
8 | | Section 100-20. The Cigarette Use Tax Act is amended by |
9 | | changing Section 13 as follows:
|
10 | | (35 ILCS 135/13) (from Ch. 120, par. 453.43)
|
11 | | Sec. 13. Examination and correction of return. As soon as |
12 | | practicable
after any return is filed, the Department
shall |
13 | | examine such return and shall correct such return according to |
14 | | its
best judgment and information, which return so corrected |
15 | | by the Department
shall be prima facie correct and shall be |
16 | | prima facie evidence of the
correctness of the amount of tax |
17 | | due, as shown therein. Proof of such
correction by the |
18 | | Department may be made at any hearing before the
Department or |
19 | | in any legal proceeding by a reproduced copy of the
|
20 | | Department's record relating thereto in the name of the |
21 | | Department under
the certificate of the Director of Revenue. |
22 | | Such reproduced copy shall,
without further proof, be admitted |
23 | | into evidence before the Department or
in any legal proceeding |
24 | | and shall be prima facie proof of the correctness
of the amount |
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1 | | of tax due, as shown therein. If the tax as fixed by the
|
2 | | Department is greater than the amount of the tax due under the |
3 | | return as
filed, the Department shall issue the person filing |
4 | | such return a notice of
tax liability for the amount of tax |
5 | | claimed by the Department to be due,
together with a penalty in |
6 | | an amount determined in accordance with
Sections 3-3, 3-5 and |
7 | | 3-6 of the Uniform Penalty and Interest Act. If,
in |
8 | | administering the provisions of this Act,
comparison of a |
9 | | return or returns of a distributor with the books, records
and |
10 | | inventories of such distributor discloses a deficiency which |
11 | | cannot be
allocated by the Department to a particular month or |
12 | | months, the Department
shall issue the distributor a notice of |
13 | | tax liability for the amount of tax
claimed by the Department |
14 | | to be due for a given period, but without any
obligation upon |
15 | | the Department to allocate such deficiency to any
particular |
16 | | month or months, together with a penalty in an amount
|
17 | | determined in accordance with Sections 3-3, 3-5 and 3-6 of the |
18 | | Uniform
Penalty and Interest Act, under which circumstances |
19 | | the aforesaid notice of
tax liability shall be prima facie |
20 | | correct and shall be prima facie
evidence of the correctness |
21 | | of the amount of tax due, as shown therein; and
proof of such |
22 | | correctness may be made in accordance with, and the
|
23 | | admissibility of a reproduced copy of such notice of tax |
24 | | liability shall be
governed by, all the provisions of this Act |
25 | | applicable to corrected returns.
|
26 | | If any person filing any return dies or becomes a person |
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|
1 | | under legal
disability at any time before the Department |
2 | | issues its notice of tax
liability, such notice shall be |
3 | | issued to the administrator, executor or
other legal |
4 | | representative, as such, of such person.
|
5 | | Except as otherwise provided in this Section, if within 60 |
6 | | days after such notice of tax liability, the person
to whom
|
7 | | such notice is issued or his legal representative files a |
8 | | protest to such
notice of tax liability and requests a hearing |
9 | | thereon, the Department
shall give notice to such person or |
10 | | legal representative of the time and
place fixed for such |
11 | | hearing, and shall hold a hearing in conformity with
the |
12 | | provisions of this Act, and pursuant thereto shall issue a |
13 | | final
assessment to such person or legal representative for |
14 | | the amount found to
be due as a result of such hearing. |
15 | | Effective July 1, 2013, protests concerning matters that are |
16 | | subject to the jurisdiction of the Illinois Independent Tax |
17 | | Tribunal shall be filed with the Tribunal in accordance with |
18 | | the Illinois Independent Tax Tribunal Act of 2012, and |
19 | | hearings concerning those matters shall be held before the |
20 | | Tribunal in accordance with that Act. With respect to protests |
21 | | filed with the Department prior to July 1, 2013 that would |
22 | | otherwise be subject to the jurisdiction of the Illinois |
23 | | Independent Tax Tribunal, the person filing the protest may |
24 | | elect to be subject to the provisions of the Illinois |
25 | | Independent Tax Tribunal Act of 2012 at any time on or after |
26 | | July 1, 2013, but not later than 30 days after the date on |
|
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1 | | which the protest was filed. If made, the election shall be |
2 | | irrevocable. If a protest to the notice of tax
liability and a |
3 | | request for a hearing thereon is not filed within the time |
4 | | allowed by law, such notice of tax liability shall
become |
5 | | final without the necessity of a final assessment being issued |
6 | | and
shall be deemed to be a final assessment.
|
7 | | Notwithstanding any other provisions of this Act, any |
8 | | amount paid as tax or in respect of tax paid under this Act |
9 | | shall be deemed assessed upon the date of receipt of payment. |
10 | | (Source: P.A. 97-1129, eff. 8-28-12.)
|
11 | | Section 100-25. The Liquor Control Act of 1934 is amended |
12 | | by changing Section 8-5 as follows:
|
13 | | (235 ILCS 5/8-5) (from Ch. 43, par. 163a)
|
14 | | Sec. 8-5.
As soon as practicable after any return is |
15 | | filed, the Department
shall examine such return or amended |
16 | | return and shall correct such return according to its
best |
17 | | judgment and information, which return so corrected by the |
18 | | Department
shall be prima facie correct and shall be prima |
19 | | facie evidence of the
correctness of the amount of tax due, as |
20 | | shown therein. Instead of
requiring the licensee to file an |
21 | | amended return, the Department may simply
notify the licensee |
22 | | of the correction or corrections it has made. Proof of
such |
23 | | correction by the Department, or of the determination of the |
24 | | amount of
tax due as provided in Sections 8-4 and 8-10, may be |
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1 | | made at
any hearing before the Department or in any legal |
2 | | proceeding by a
reproduced copy of the Department's record |
3 | | relating thereto in the name of
the Department under the |
4 | | certificate of the Director of Revenue. Such
reproduced copy |
5 | | shall, without further proof, be admitted into evidence
before |
6 | | the Department or in any legal proceeding and shall be prima |
7 | | facie
proof of the correctness of the amount of tax due, as |
8 | | shown therein. If the
return so corrected by the Department |
9 | | discloses the sale or use, by a
licensed manufacturer or |
10 | | importing distributor, of alcoholic liquors as to
which the |
11 | | tax provided for in this Article should have been paid, but has
|
12 | | not been paid, in excess of the alcoholic liquors reported as |
13 | | being taxable
by the licensee, and as to which the proper tax |
14 | | was paid the Department
shall notify the licensee that it |
15 | | shall issue the taxpayer a notice of tax
liability for the |
16 | | amount of tax claimed by the Department to be due,
together |
17 | | with penalties at the rates prescribed by Sections 3-3, 3-5 |
18 | | and
3-6 of the Uniform Penalty and Interest Act, which amount |
19 | | of tax shall be
equivalent to the amount of tax which, at the |
20 | | prescribed rate per gallon,
should have been paid with respect |
21 | | to the alcoholic liquors disposed of in
excess of those |
22 | | reported as being taxable. No earlier than 90 days after the |
23 | | due date of the return, the Department may compare filed |
24 | | returns, or any amendments thereto, against reports of sales |
25 | | of alcoholic liquor submitted to the Department by other |
26 | | manufacturers and distributors. If a return or amended return |
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1 | | is corrected by the Department because the return or amended |
2 | | return failed to disclose the purchase of alcoholic liquor |
3 | | from manufacturers or distributors on which the tax provided |
4 | | for in this Article should have been paid, but has not been |
5 | | paid, the Department shall issue the taxpayer a notice of tax |
6 | | liability for the amount of tax claimed by the Department to be |
7 | | due, together with penalties at the rates prescribed by |
8 | | Sections 3-3, 3-5, and 3-6 of the Uniform Penalty and Interest |
9 | | Act. In a case where no return has
been filed, the Department |
10 | | shall determine the amount of tax due according
to its best |
11 | | judgment and information and shall issue the taxpayer a notice
|
12 | | of tax liability for the amount of tax claimed by the |
13 | | Department to be due
as herein provided together with |
14 | | penalties at the rates prescribed by
Sections 3-3, 3-5 and 3-6 |
15 | | of the Uniform Penalty and Interest Act. If, in
administering |
16 | | the provisions of this Act, a comparison of a licensee's
|
17 | | return or returns with the books, records and physical |
18 | | inventories of such
licensee discloses a deficiency which |
19 | | cannot be allocated by the Department
to a particular month or |
20 | | months, the Department shall issue the taxpayer a
notice of |
21 | | tax liability for the amount of tax claimed by the Department |
22 | | to
be due for a given period, but without any obligation upon |
23 | | the Department
to allocate such deficiency to any particular |
24 | | month or months, together
with penalties at the rates |
25 | | prescribed by Sections 3-3, 3-5 and 3-6 of the
Uniform Penalty |
26 | | and Interest Act, which amount of tax shall be equivalent to
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1 | | the amount of tax which, at the prescribed rate per gallon, |
2 | | should have
been paid with respect to the alcoholic liquors |
3 | | disposed of in excess of
those reported being taxable, with |
4 | | the tax thereon having been paid under
which circumstances the |
5 | | aforesaid notice of tax liability shall be prima
facie correct |
6 | | and shall be prima facie evidence of the correctness of the
|
7 | | amount of tax due as shown therein; and proof of such |
8 | | correctness may be
made in accordance with, and the |
9 | | admissibility of a reproduced copy of such
notice of the |
10 | | Department's notice of tax liability shall be governed by,
all |
11 | | the provisions of this Act applicable to corrected returns.
|
12 | | If the licensee dies or becomes a person under legal |
13 | | disability
at any time before the Department issues its notice |
14 | | of tax liability, such
notice shall be issued to the |
15 | | administrator, executor or other legal
representative, as |
16 | | such, of the deceased or licensee who is under legal
|
17 | | disability.
|
18 | | If such licensee or legal representative, within 60 days |
19 | | after such
notice of tax liability, files a protest to such |
20 | | notice of tax liability
and requests a hearing thereon, the |
21 | | Department shall give at least 7 days'
notice to such licensee |
22 | | or legal representative, as the case may be, of the
time and |
23 | | place fixed for such hearing and shall hold a hearing in
|
24 | | conformity with the provisions of this Act, and pursuant |
25 | | thereto shall
issue a final assessment to such licensee or |
26 | | legal representative for the
amount found to be due as a result |
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1 | | of such hearing.
|
2 | | If a protest to the notice of tax liability and a request |
3 | | for a hearing
thereon is not filed within 60 days after such |
4 | | notice of tax liability,
such notice of tax liability shall |
5 | | become final without the necessity of a
final assessment being |
6 | | issued and shall be deemed to be a final assessment.
|
7 | | Notwithstanding any other provisions of this Act, any |
8 | | amount paid as tax or in respect of tax paid under this Act |
9 | | shall be deemed assessed upon the date of receipt of payment. |
10 | | In case of failure to pay the tax, or any portion thereof, |
11 | | or any
penalty provided for herein, when due, the Department |
12 | | may recover the
amount of such tax, or portion thereof, or |
13 | | penalty in a civil action; or if
the licensee dies or becomes a |
14 | | person under legal disability, by filing a
claim therefor |
15 | | against his or her estate; provided that no such claim shall
be |
16 | | filed against the estate of any deceased or of the licensee who |
17 | | is under
legal disability for any tax or penalty or portion |
18 | | thereof except in the
manner prescribed and within the time |
19 | | limited by the Probate Act of 1975,
as amended.
|
20 | | The collection of any such tax and penalty, or either, by |
21 | | any means
provided for herein, shall not be a bar to any |
22 | | prosecution under this Act.
|
23 | | In addition to any other penalty provided for in this |
24 | | Article, all provisions of the Uniform Penalty and Interest |
25 | | Act that are not inconsistent with this Act apply.
|
26 | | (Source: P.A. 100-1050, eff. 7-1-19; 101-16, eff. 6-14-19.)
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1 | | ARTICLE 110. PARTNERSHIPS |
2 | | Section 5. The Illinois Income Tax Act is amended by |
3 | | changing Section 201 as follows:
|
4 | | (35 ILCS 5/201)
|
5 | | Sec. 201. Tax imposed. |
6 | | (a) In general. A tax measured by net income is hereby |
7 | | imposed on every
individual, corporation, trust and estate for |
8 | | each taxable year ending
after July 31, 1969 on the privilege |
9 | | of earning or receiving income in or
as a resident of this |
10 | | State. Such tax shall be in addition to all other
occupation or |
11 | | privilege taxes imposed by this State or by any municipal
|
12 | | corporation or political subdivision thereof. |
13 | | (b) Rates. The tax imposed by subsection (a) of this |
14 | | Section shall be
determined as follows, except as adjusted by |
15 | | subsection (d-1): |
16 | | (1) In the case of an individual, trust or estate, for |
17 | | taxable years
ending prior to July 1, 1989, an amount |
18 | | equal to 2 1/2% of the taxpayer's
net income for the |
19 | | taxable year. |
20 | | (2) In the case of an individual, trust or estate, for |
21 | | taxable years
beginning prior to July 1, 1989 and ending |
22 | | after June 30, 1989, an amount
equal to the sum of (i) 2 |
23 | | 1/2% of the taxpayer's net income for the period
prior to |
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1 | | July 1, 1989, as calculated under Section 202.3, and (ii) |
2 | | 3% of the
taxpayer's net income for the period after June |
3 | | 30, 1989, as calculated
under Section 202.3. |
4 | | (3) In the case of an individual, trust or estate, for |
5 | | taxable years
beginning after June 30, 1989, and ending |
6 | | prior to January 1, 2011, an amount equal to 3% of the |
7 | | taxpayer's net
income for the taxable year. |
8 | | (4) In the case of an individual, trust, or estate, |
9 | | for taxable years beginning prior to January 1, 2011, and |
10 | | ending after December 31, 2010, an amount equal to the sum |
11 | | of (i) 3% of the taxpayer's net income for the period prior |
12 | | to January 1, 2011, as calculated under Section 202.5, and |
13 | | (ii) 5% of the taxpayer's net income for the period after |
14 | | December 31, 2010, as calculated under Section 202.5. |
15 | | (5) In the case of an individual, trust, or estate, |
16 | | for taxable years beginning on or after January 1, 2011, |
17 | | and ending prior to January 1, 2015, an amount equal to 5% |
18 | | of the taxpayer's net income for the taxable year. |
19 | | (5.1) In the case of an individual, trust, or estate, |
20 | | for taxable years beginning prior to January 1, 2015, and |
21 | | ending after December 31, 2014, an amount equal to the sum |
22 | | of (i) 5% of the taxpayer's net income for the period prior |
23 | | to January 1, 2015, as calculated under Section 202.5, and |
24 | | (ii) 3.75% of the taxpayer's net income for the period |
25 | | after December 31, 2014, as calculated under Section |
26 | | 202.5. |
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1 | | (5.2) In the case of an individual, trust, or estate, |
2 | | for taxable years beginning on or after January 1, 2015, |
3 | | and ending prior to July 1, 2017, an amount equal to 3.75% |
4 | | of the taxpayer's net income for the taxable year. |
5 | | (5.3) In the case of an individual, trust, or estate, |
6 | | for taxable years beginning prior to July 1, 2017, and |
7 | | ending after June 30, 2017, an amount equal to the sum of |
8 | | (i) 3.75% of the taxpayer's net income for the period |
9 | | prior to July 1, 2017, as calculated under Section 202.5, |
10 | | and (ii) 4.95% of the taxpayer's net income for the period |
11 | | after June 30, 2017, as calculated under Section 202.5. |
12 | | (5.4) In the case of an individual, trust, or estate, |
13 | | for taxable years beginning on or after July 1, 2017, an |
14 | | amount equal to 4.95% of the taxpayer's net income for the |
15 | | taxable year. |
16 | | (6) In the case of a corporation, for taxable years
|
17 | | ending prior to July 1, 1989, an amount equal to 4% of the
|
18 | | taxpayer's net income for the taxable year. |
19 | | (7) In the case of a corporation, for taxable years |
20 | | beginning prior to
July 1, 1989 and ending after June 30, |
21 | | 1989, an amount equal to the sum of
(i) 4% of the |
22 | | taxpayer's net income for the period prior to July 1, |
23 | | 1989,
as calculated under Section 202.3, and (ii) 4.8% of |
24 | | the taxpayer's net
income for the period after June 30, |
25 | | 1989, as calculated under Section
202.3. |
26 | | (8) In the case of a corporation, for taxable years |
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1 | | beginning after
June 30, 1989, and ending prior to January |
2 | | 1, 2011, an amount equal to 4.8% of the taxpayer's net |
3 | | income for the
taxable year. |
4 | | (9) In the case of a corporation, for taxable years |
5 | | beginning prior to January 1, 2011, and ending after |
6 | | December 31, 2010, an amount equal to the sum of (i) 4.8% |
7 | | of the taxpayer's net income for the period prior to |
8 | | January 1, 2011, as calculated under Section 202.5, and |
9 | | (ii) 7% of the taxpayer's net income for the period after |
10 | | December 31, 2010, as calculated under Section 202.5. |
11 | | (10) In the case of a corporation, for taxable years |
12 | | beginning on or after January 1, 2011, and ending prior to |
13 | | January 1, 2015, an amount equal to 7% of the taxpayer's |
14 | | net income for the taxable year. |
15 | | (11) In the case of a corporation, for taxable years |
16 | | beginning prior to January 1, 2015, and ending after |
17 | | December 31, 2014, an amount equal to the sum of (i) 7% of |
18 | | the taxpayer's net income for the period prior to January |
19 | | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% |
20 | | of the taxpayer's net income for the period after December |
21 | | 31, 2014, as calculated under Section 202.5. |
22 | | (12) In the case of a corporation, for taxable years |
23 | | beginning on or after January 1, 2015, and ending prior to |
24 | | July 1, 2017, an amount equal to 5.25% of the taxpayer's |
25 | | net income for the taxable year. |
26 | | (13) In the case of a corporation, for taxable years |
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1 | | beginning prior to July 1, 2017, and ending after June 30, |
2 | | 2017, an amount equal to the sum of (i) 5.25% of the |
3 | | taxpayer's net income for the period prior to July 1, |
4 | | 2017, as calculated under Section 202.5, and (ii) 7% of |
5 | | the taxpayer's net income for the period after June 30, |
6 | | 2017, as calculated under Section 202.5. |
7 | | (14) In the case of a corporation, for taxable years |
8 | | beginning on or after July 1, 2017, an amount equal to 7% |
9 | | of the taxpayer's net income for the taxable year. |
10 | | The rates under this subsection (b) are subject to the |
11 | | provisions of Section 201.5. |
12 | | (b-5) Surcharge; sale or exchange of assets, properties, |
13 | | and intangibles of organization gaming licensees. For each of |
14 | | taxable years 2019 through 2027, a surcharge is imposed on all |
15 | | taxpayers on income arising from the sale or exchange of |
16 | | capital assets, depreciable business property, real property |
17 | | used in the trade or business, and Section 197 intangibles (i) |
18 | | of an organization licensee under the Illinois Horse Racing |
19 | | Act of 1975 and (ii) of an organization gaming licensee under |
20 | | the Illinois Gambling Act. The amount of the surcharge is |
21 | | equal to the amount of federal income tax liability for the |
22 | | taxable year attributable to those sales and exchanges. The |
23 | | surcharge imposed shall not apply if: |
24 | | (1) the organization gaming license, organization |
25 | | license, or racetrack property is transferred as a result |
26 | | of any of the following: |
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1 | | (A) bankruptcy, a receivership, or a debt |
2 | | adjustment initiated by or against the initial |
3 | | licensee or the substantial owners of the initial |
4 | | licensee; |
5 | | (B) cancellation, revocation, or termination of |
6 | | any such license by the Illinois Gaming Board or the |
7 | | Illinois Racing Board; |
8 | | (C) a determination by the Illinois Gaming Board |
9 | | that transfer of the license is in the best interests |
10 | | of Illinois gaming; |
11 | | (D) the death of an owner of the equity interest in |
12 | | a licensee; |
13 | | (E) the acquisition of a controlling interest in |
14 | | the stock or substantially all of the assets of a |
15 | | publicly traded company; |
16 | | (F) a transfer by a parent company to a wholly |
17 | | owned subsidiary; or |
18 | | (G) the transfer or sale to or by one person to |
19 | | another person where both persons were initial owners |
20 | | of the license when the license was issued; or |
21 | | (2) the controlling interest in the organization |
22 | | gaming license, organization license, or racetrack |
23 | | property is transferred in a transaction to lineal |
24 | | descendants in which no gain or loss is recognized or as a |
25 | | result of a transaction in accordance with Section 351 of |
26 | | the Internal Revenue Code in which no gain or loss is |
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1 | | recognized; or |
2 | | (3) live horse racing was not conducted in 2010 at a |
3 | | racetrack located within 3 miles of the Mississippi River |
4 | | under a license issued pursuant to the Illinois Horse |
5 | | Racing Act of 1975. |
6 | | The transfer of an organization gaming license, |
7 | | organization license, or racetrack property by a person other |
8 | | than the initial licensee to receive the organization gaming |
9 | | license is not subject to a surcharge. The Department shall |
10 | | adopt rules necessary to implement and administer this |
11 | | subsection. |
12 | | (c) Personal Property Tax Replacement Income Tax.
|
13 | | Beginning on July 1, 1979 and thereafter, in addition to such |
14 | | income
tax, there is also hereby imposed the Personal Property |
15 | | Tax Replacement
Income Tax measured by net income on every |
16 | | corporation (including Subchapter
S corporations), partnership |
17 | | and trust, for each taxable year ending after
June 30, 1979. |
18 | | Such taxes are imposed on the privilege of earning or
|
19 | | receiving income in or as a resident of this State. The |
20 | | Personal Property
Tax Replacement Income Tax shall be in |
21 | | addition to the income tax imposed
by subsections (a) and (b) |
22 | | of this Section and in addition to all other
occupation or |
23 | | privilege taxes imposed by this State or by any municipal
|
24 | | corporation or political subdivision thereof. |
25 | | (d) Additional Personal Property Tax Replacement Income |
26 | | Tax Rates.
The personal property tax replacement income tax |
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1 | | imposed by this subsection
and subsection (c) of this Section |
2 | | in the case of a corporation, other
than a Subchapter S |
3 | | corporation and except as adjusted by subsection (d-1),
shall |
4 | | be an additional amount equal to
2.85% of such taxpayer's net |
5 | | income for the taxable year, except that
beginning on January |
6 | | 1, 1981, and thereafter, the rate of 2.85% specified
in this |
7 | | subsection shall be reduced to 2.5%, and in the case of a
|
8 | | partnership, trust or a Subchapter S corporation shall be an |
9 | | additional
amount equal to 1.5% of such taxpayer's net income |
10 | | for the taxable year. |
11 | | (d-1) Rate reduction for certain foreign insurers. In the |
12 | | case of a
foreign insurer, as defined by Section 35A-5 of the |
13 | | Illinois Insurance Code,
whose state or country of domicile |
14 | | imposes on insurers domiciled in Illinois
a retaliatory tax |
15 | | (excluding any insurer
whose premiums from reinsurance assumed |
16 | | are 50% or more of its total insurance
premiums as determined |
17 | | under paragraph (2) of subsection (b) of Section 304,
except |
18 | | that for purposes of this determination premiums from |
19 | | reinsurance do
not include premiums from inter-affiliate |
20 | | reinsurance arrangements),
beginning with taxable years ending |
21 | | on or after December 31, 1999,
the sum of
the rates of tax |
22 | | imposed by subsections (b) and (d) shall be reduced (but not
|
23 | | increased) to the rate at which the total amount of tax imposed |
24 | | under this Act,
net of all credits allowed under this Act, |
25 | | shall equal (i) the total amount of
tax that would be imposed |
26 | | on the foreign insurer's net income allocable to
Illinois for |
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1 | | the taxable year by such foreign insurer's state or country of
|
2 | | domicile if that net income were subject to all income taxes |
3 | | and taxes
measured by net income imposed by such foreign |
4 | | insurer's state or country of
domicile, net of all credits |
5 | | allowed or (ii) a rate of zero if no such tax is
imposed on |
6 | | such income by the foreign insurer's state of domicile.
For |
7 | | the purposes of this subsection (d-1), an inter-affiliate |
8 | | includes a
mutual insurer under common management. |
9 | | (1) For the purposes of subsection (d-1), in no event |
10 | | shall the sum of the
rates of tax imposed by subsections |
11 | | (b) and (d) be reduced below the rate at
which the sum of: |
12 | | (A) the total amount of tax imposed on such |
13 | | foreign insurer under
this Act for a taxable year, net |
14 | | of all credits allowed under this Act, plus |
15 | | (B) the privilege tax imposed by Section 409 of |
16 | | the Illinois Insurance
Code, the fire insurance |
17 | | company tax imposed by Section 12 of the Fire
|
18 | | Investigation Act, and the fire department taxes |
19 | | imposed under Section 11-10-1
of the Illinois |
20 | | Municipal Code, |
21 | | equals 1.25% for taxable years ending prior to December |
22 | | 31, 2003, or
1.75% for taxable years ending on or after |
23 | | December 31, 2003, of the net
taxable premiums written for |
24 | | the taxable year,
as described by subsection (1) of |
25 | | Section 409 of the Illinois Insurance Code.
This paragraph |
26 | | will in no event increase the rates imposed under |
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1 | | subsections
(b) and (d). |
2 | | (2) Any reduction in the rates of tax imposed by this |
3 | | subsection shall be
applied first against the rates |
4 | | imposed by subsection (b) and only after the
tax imposed |
5 | | by subsection (a) net of all credits allowed under this |
6 | | Section
other than the credit allowed under subsection (i) |
7 | | has been reduced to zero,
against the rates imposed by |
8 | | subsection (d). |
9 | | This subsection (d-1) is exempt from the provisions of |
10 | | Section 250. |
11 | | (e) Investment credit. A taxpayer shall be allowed a |
12 | | credit
against the Personal Property Tax Replacement Income |
13 | | Tax for
investment in qualified property. |
14 | | (1) A taxpayer shall be allowed a credit equal to .5% |
15 | | of
the basis of qualified property placed in service |
16 | | during the taxable year,
provided such property is placed |
17 | | in service on or after
July 1, 1984. There shall be allowed |
18 | | an additional credit equal
to .5% of the basis of |
19 | | qualified property placed in service during the
taxable |
20 | | year, provided such property is placed in service on or
|
21 | | after July 1, 1986, and the taxpayer's base employment
|
22 | | within Illinois has increased by 1% or more over the |
23 | | preceding year as
determined by the taxpayer's employment |
24 | | records filed with the
Illinois Department of Employment |
25 | | Security. Taxpayers who are new to
Illinois shall be |
26 | | deemed to have met the 1% growth in base employment for
the |
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1 | | first year in which they file employment records with the |
2 | | Illinois
Department of Employment Security. The provisions |
3 | | added to this Section by
Public Act 85-1200 (and restored |
4 | | by Public Act 87-895) shall be
construed as declaratory of |
5 | | existing law and not as a new enactment. If,
in any year, |
6 | | the increase in base employment within Illinois over the
|
7 | | preceding year is less than 1%, the additional credit |
8 | | shall be limited to that
percentage times a fraction, the |
9 | | numerator of which is .5% and the denominator
of which is |
10 | | 1%, but shall not exceed .5%. The investment credit shall |
11 | | not be
allowed to the extent that it would reduce a |
12 | | taxpayer's liability in any tax
year below zero, nor may |
13 | | any credit for qualified property be allowed for any
year |
14 | | other than the year in which the property was placed in |
15 | | service in
Illinois. For tax years ending on or after |
16 | | December 31, 1987, and on or
before December 31, 1988, the |
17 | | credit shall be allowed for the tax year in
which the |
18 | | property is placed in service, or, if the amount of the |
19 | | credit
exceeds the tax liability for that year, whether it |
20 | | exceeds the original
liability or the liability as later |
21 | | amended, such excess may be carried
forward and applied to |
22 | | the tax liability of the 5 taxable years following
the |
23 | | excess credit years if the taxpayer (i) makes investments |
24 | | which cause
the creation of a minimum of 2,000 full-time |
25 | | equivalent jobs in Illinois,
(ii) is located in an |
26 | | enterprise zone established pursuant to the Illinois
|
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1 | | Enterprise Zone Act and (iii) is certified by the |
2 | | Department of Commerce
and Community Affairs (now |
3 | | Department of Commerce and Economic Opportunity) as |
4 | | complying with the requirements specified in
clause (i) |
5 | | and (ii) by July 1, 1986. The Department of Commerce and
|
6 | | Community Affairs (now Department of Commerce and Economic |
7 | | Opportunity) shall notify the Department of Revenue of all |
8 | | such
certifications immediately. For tax years ending |
9 | | after December 31, 1988,
the credit shall be allowed for |
10 | | the tax year in which the property is
placed in service, |
11 | | or, if the amount of the credit exceeds the tax
liability |
12 | | for that year, whether it exceeds the original liability |
13 | | or the
liability as later amended, such excess may be |
14 | | carried forward and applied
to the tax liability of the 5 |
15 | | taxable years following the excess credit
years. The |
16 | | credit shall be applied to the earliest year for which |
17 | | there is
a liability. If there is credit from more than one |
18 | | tax year that is
available to offset a liability, earlier |
19 | | credit shall be applied first. |
20 | | (2) The term "qualified property" means property |
21 | | which: |
22 | | (A) is tangible, whether new or used, including |
23 | | buildings and structural
components of buildings and |
24 | | signs that are real property, but not including
land |
25 | | or improvements to real property that are not a |
26 | | structural component of a
building such as |
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1 | | landscaping, sewer lines, local access roads, fencing, |
2 | | parking
lots, and other appurtenances; |
3 | | (B) is depreciable pursuant to Section 167 of the |
4 | | Internal Revenue Code,
except that "3-year property" |
5 | | as defined in Section 168(c)(2)(A) of that
Code is not |
6 | | eligible for the credit provided by this subsection |
7 | | (e); |
8 | | (C) is acquired by purchase as defined in Section |
9 | | 179(d) of
the Internal Revenue Code; |
10 | | (D) is used in Illinois by a taxpayer who is |
11 | | primarily engaged in
manufacturing, or in mining coal |
12 | | or fluorite, or in retailing, or was placed in service |
13 | | on or after July 1, 2006 in a River Edge Redevelopment |
14 | | Zone established pursuant to the River Edge |
15 | | Redevelopment Zone Act; and |
16 | | (E) has not previously been used in Illinois in |
17 | | such a manner and by
such a person as would qualify for |
18 | | the credit provided by this subsection
(e) or |
19 | | subsection (f). |
20 | | (3) For purposes of this subsection (e), |
21 | | "manufacturing" means
the material staging and production |
22 | | of tangible personal property by
procedures commonly |
23 | | regarded as manufacturing, processing, fabrication, or
|
24 | | assembling which changes some existing material into new |
25 | | shapes, new
qualities, or new combinations. For purposes |
26 | | of this subsection
(e) the term "mining" shall have the |
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1 | | same meaning as the term "mining" in
Section 613(c) of the |
2 | | Internal Revenue Code. For purposes of this subsection
|
3 | | (e), the term "retailing" means the sale of tangible |
4 | | personal property for use or consumption and not for |
5 | | resale, or
services rendered in conjunction with the sale |
6 | | of tangible personal property for use or consumption and |
7 | | not for resale. For purposes of this subsection (e), |
8 | | "tangible personal property" has the same meaning as when |
9 | | that term is used in the Retailers' Occupation Tax Act, |
10 | | and, for taxable years ending after December 31, 2008, |
11 | | does not include the generation, transmission, or |
12 | | distribution of electricity. |
13 | | (4) The basis of qualified property shall be the basis
|
14 | | used to compute the depreciation deduction for federal |
15 | | income tax purposes. |
16 | | (5) If the basis of the property for federal income |
17 | | tax depreciation
purposes is increased after it has been |
18 | | placed in service in Illinois by
the taxpayer, the amount |
19 | | of such increase shall be deemed property placed
in |
20 | | service on the date of such increase in basis. |
21 | | (6) The term "placed in service" shall have the same
|
22 | | meaning as under Section 46 of the Internal Revenue Code. |
23 | | (7) If during any taxable year, any property ceases to
|
24 | | be qualified property in the hands of the taxpayer within |
25 | | 48 months after
being placed in service, or the situs of |
26 | | any qualified property is
moved outside Illinois within 48 |
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1 | | months after being placed in service, the
Personal |
2 | | Property Tax Replacement Income Tax for such taxable year |
3 | | shall be
increased. Such increase shall be determined by |
4 | | (i) recomputing the
investment credit which would have |
5 | | been allowed for the year in which
credit for such |
6 | | property was originally allowed by eliminating such
|
7 | | property from such computation and, (ii) subtracting such |
8 | | recomputed credit
from the amount of credit previously |
9 | | allowed. For the purposes of this
paragraph (7), a |
10 | | reduction of the basis of qualified property resulting
|
11 | | from a redetermination of the purchase price shall be |
12 | | deemed a disposition
of qualified property to the extent |
13 | | of such reduction. |
14 | | (8) Unless the investment credit is extended by law, |
15 | | the
basis of qualified property shall not include costs |
16 | | incurred after
December 31, 2018, except for costs |
17 | | incurred pursuant to a binding
contract entered into on or |
18 | | before December 31, 2018. |
19 | | (9) Each taxable year ending before December 31, 2000, |
20 | | a partnership may
elect to pass through to its
partners |
21 | | the credits to which the partnership is entitled under |
22 | | this subsection
(e) for the taxable year. A partner may |
23 | | use the credit allocated to him or her
under this |
24 | | paragraph only against the tax imposed in subsections (c) |
25 | | and (d) of
this Section. If the partnership makes that |
26 | | election, those credits shall be
allocated among the |
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1 | | partners in the partnership in accordance with the rules
|
2 | | set forth in Section 704(b) of the Internal Revenue Code, |
3 | | and the rules
promulgated under that Section, and the |
4 | | allocated amount of the credits shall
be allowed to the |
5 | | partners for that taxable year. The partnership shall make
|
6 | | this election on its Personal Property Tax Replacement |
7 | | Income Tax return for
that taxable year. The election to |
8 | | pass through the credits shall be
irrevocable. |
9 | | For taxable years ending on or after December 31, |
10 | | 2000, a
partner that qualifies its
partnership for a |
11 | | subtraction under subparagraph (I) of paragraph (2) of
|
12 | | subsection (d) of Section 203 or a shareholder that |
13 | | qualifies a Subchapter S
corporation for a subtraction |
14 | | under subparagraph (S) of paragraph (2) of
subsection (b) |
15 | | of Section 203 shall be allowed a credit under this |
16 | | subsection
(e) equal to its share of the credit earned |
17 | | under this subsection (e) during
the taxable year by the |
18 | | partnership or Subchapter S corporation, determined in
|
19 | | accordance with the determination of income and |
20 | | distributive share of
income under Sections 702 and 704 |
21 | | and Subchapter S of the Internal Revenue
Code. This |
22 | | paragraph is exempt from the provisions of Section 250. |
23 | | (f) Investment credit; Enterprise Zone; River Edge |
24 | | Redevelopment Zone. |
25 | | (1) A taxpayer shall be allowed a credit against the |
26 | | tax imposed
by subsections (a) and (b) of this Section for |
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1 | | investment in qualified
property which is placed in |
2 | | service in an Enterprise Zone created
pursuant to the |
3 | | Illinois Enterprise Zone Act or, for property placed in |
4 | | service on or after July 1, 2006, a River Edge |
5 | | Redevelopment Zone established pursuant to the River Edge |
6 | | Redevelopment Zone Act. For partners, shareholders
of |
7 | | Subchapter S corporations, and owners of limited liability |
8 | | companies,
if the liability company is treated as a |
9 | | partnership for purposes of
federal and State income |
10 | | taxation, there shall be allowed a credit under
this |
11 | | subsection (f) to be determined in accordance with the |
12 | | determination
of income and distributive share of income |
13 | | under Sections 702 and 704 and
Subchapter S of the |
14 | | Internal Revenue Code. The credit shall be .5% of the
|
15 | | basis for such property. The credit shall be available |
16 | | only in the taxable
year in which the property is placed in |
17 | | service in the Enterprise Zone or River Edge Redevelopment |
18 | | Zone and
shall not be allowed to the extent that it would |
19 | | reduce a taxpayer's
liability for the tax imposed by |
20 | | subsections (a) and (b) of this Section to
below zero. For |
21 | | tax years ending on or after December 31, 1985, the credit
|
22 | | shall be allowed for the tax year in which the property is |
23 | | placed in
service, or, if the amount of the credit exceeds |
24 | | the tax liability for that
year, whether it exceeds the |
25 | | original liability or the liability as later
amended, such |
26 | | excess may be carried forward and applied to the tax
|
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1 | | liability of the 5 taxable years following the excess |
2 | | credit year.
The credit shall be applied to the earliest |
3 | | year for which there is a
liability. If there is credit |
4 | | from more than one tax year that is available
to offset a |
5 | | liability, the credit accruing first in time shall be |
6 | | applied
first. |
7 | | (2) The term qualified property means property which: |
8 | | (A) is tangible, whether new or used, including |
9 | | buildings and
structural components of buildings; |
10 | | (B) is depreciable pursuant to Section 167 of the |
11 | | Internal Revenue
Code, except that "3-year property" |
12 | | as defined in Section 168(c)(2)(A) of
that Code is not |
13 | | eligible for the credit provided by this subsection |
14 | | (f); |
15 | | (C) is acquired by purchase as defined in Section |
16 | | 179(d) of
the Internal Revenue Code; |
17 | | (D) is used in the Enterprise Zone or River Edge |
18 | | Redevelopment Zone by the taxpayer; and |
19 | | (E) has not been previously used in Illinois in |
20 | | such a manner and by
such a person as would qualify for |
21 | | the credit provided by this subsection
(f) or |
22 | | subsection (e). |
23 | | (3) The basis of qualified property shall be the basis |
24 | | used to compute
the depreciation deduction for federal |
25 | | income tax purposes. |
26 | | (4) If the basis of the property for federal income |
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1 | | tax depreciation
purposes is increased after it has been |
2 | | placed in service in the Enterprise
Zone or River Edge |
3 | | Redevelopment Zone by the taxpayer, the amount of such |
4 | | increase shall be deemed property
placed in service on the |
5 | | date of such increase in basis. |
6 | | (5) The term "placed in service" shall have the same |
7 | | meaning as under
Section 46 of the Internal Revenue Code. |
8 | | (6) If during any taxable year, any property ceases to |
9 | | be qualified
property in the hands of the taxpayer within |
10 | | 48 months after being placed
in service, or the situs of |
11 | | any qualified property is moved outside the
Enterprise |
12 | | Zone or River Edge Redevelopment Zone within 48 months |
13 | | after being placed in service, the tax
imposed under |
14 | | subsections (a) and (b) of this Section for such taxable |
15 | | year
shall be increased. Such increase shall be determined |
16 | | by (i) recomputing
the investment credit which would have |
17 | | been allowed for the year in which
credit for such |
18 | | property was originally allowed by eliminating such
|
19 | | property from such computation, and (ii) subtracting such |
20 | | recomputed credit
from the amount of credit previously |
21 | | allowed. For the purposes of this
paragraph (6), a |
22 | | reduction of the basis of qualified property resulting
|
23 | | from a redetermination of the purchase price shall be |
24 | | deemed a disposition
of qualified property to the extent |
25 | | of such reduction. |
26 | | (7) There shall be allowed an additional credit equal |
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1 | | to 0.5% of the basis of qualified property placed in |
2 | | service during the taxable year in a River Edge |
3 | | Redevelopment Zone, provided such property is placed in |
4 | | service on or after July 1, 2006, and the taxpayer's base |
5 | | employment within Illinois has increased by 1% or more |
6 | | over the preceding year as determined by the taxpayer's |
7 | | employment records filed with the Illinois Department of |
8 | | Employment Security. Taxpayers who are new to Illinois |
9 | | shall be deemed to have met the 1% growth in base |
10 | | employment for the first year in which they file |
11 | | employment records with the Illinois Department of |
12 | | Employment Security. If, in any year, the increase in base |
13 | | employment within Illinois over the preceding year is less |
14 | | than 1%, the additional credit shall be limited to that |
15 | | percentage times a fraction, the numerator of which is |
16 | | 0.5% and the denominator of which is 1%, but shall not |
17 | | exceed 0.5%.
|
18 | | (8) For taxable years beginning on or after January 1, |
19 | | 2021, there shall be allowed an Enterprise Zone |
20 | | construction jobs credit against the taxes imposed under |
21 | | subsections (a) and (b) of this Section as provided in |
22 | | Section 13 of the Illinois Enterprise Zone Act. |
23 | | The credit or credits may not reduce the taxpayer's |
24 | | liability to less than zero. If the amount of the credit or |
25 | | credits exceeds the taxpayer's liability, the excess may |
26 | | be carried forward and applied against the taxpayer's |
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1 | | liability in succeeding calendar years in the same manner |
2 | | provided under paragraph (4) of Section 211 of this Act. |
3 | | The credit or credits shall be applied to the earliest |
4 | | year for which there is a tax liability. If there are |
5 | | credits from more than one taxable year that are available |
6 | | to offset a liability, the earlier credit shall be applied |
7 | | first. |
8 | | For partners, shareholders of Subchapter S |
9 | | corporations, and owners of limited liability companies, |
10 | | if the liability company is treated as a partnership for |
11 | | the purposes of federal and State income taxation, there |
12 | | shall be allowed a credit under this Section to be |
13 | | determined in accordance with the determination of income |
14 | | and distributive share of income under Sections 702 and |
15 | | 704 and Subchapter S of the Internal Revenue Code. |
16 | | The total aggregate amount of credits awarded under |
17 | | the Blue Collar Jobs Act (Article 20 of Public Act 101-9) |
18 | | shall not exceed $20,000,000 in any State fiscal year. |
19 | | This paragraph (8) is exempt from the provisions of |
20 | | Section 250. |
21 | | (g) (Blank). |
22 | | (h) Investment credit; High Impact Business. |
23 | | (1) Subject to subsections (b) and (b-5) of Section
|
24 | | 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall |
25 | | be allowed a credit
against the tax imposed by subsections |
26 | | (a) and (b) of this Section for
investment in qualified
|
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1 | | property which is placed in service by a Department of |
2 | | Commerce and Economic Opportunity
designated High Impact |
3 | | Business. The credit shall be .5% of the basis
for such |
4 | | property. The credit shall not be available (i) until the |
5 | | minimum
investments in qualified property set forth in |
6 | | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
|
7 | | Enterprise Zone Act have been satisfied
or (ii) until the |
8 | | time authorized in subsection (b-5) of the Illinois
|
9 | | Enterprise Zone Act for entities designated as High Impact |
10 | | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and |
11 | | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone |
12 | | Act, and shall not be allowed to the extent that it would
|
13 | | reduce a taxpayer's liability for the tax imposed by |
14 | | subsections (a) and (b) of
this Section to below zero. The |
15 | | credit applicable to such investments shall be
taken in |
16 | | the taxable year in which such investments have been |
17 | | completed. The
credit for additional investments beyond |
18 | | the minimum investment by a designated
high impact |
19 | | business authorized under subdivision (a)(3)(A) of Section |
20 | | 5.5 of
the Illinois Enterprise Zone Act shall be available |
21 | | only in the taxable year in
which the property is placed in |
22 | | service and shall not be allowed to the extent
that it |
23 | | would reduce a taxpayer's liability for the tax imposed by |
24 | | subsections
(a) and (b) of this Section to below zero.
For |
25 | | tax years ending on or after December 31, 1987, the credit |
26 | | shall be
allowed for the tax year in which the property is |
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1 | | placed in service, or, if
the amount of the credit exceeds |
2 | | the tax liability for that year, whether
it exceeds the |
3 | | original liability or the liability as later amended, such
|
4 | | excess may be carried forward and applied to the tax |
5 | | liability of the 5
taxable years following the excess |
6 | | credit year. The credit shall be
applied to the earliest |
7 | | year for which there is a liability. If there is
credit |
8 | | from more than one tax year that is available to offset a |
9 | | liability,
the credit accruing first in time shall be |
10 | | applied first. |
11 | | Changes made in this subdivision (h)(1) by Public Act |
12 | | 88-670
restore changes made by Public Act 85-1182 and |
13 | | reflect existing law. |
14 | | (2) The term qualified property means property which: |
15 | | (A) is tangible, whether new or used, including |
16 | | buildings and
structural components of buildings; |
17 | | (B) is depreciable pursuant to Section 167 of the |
18 | | Internal Revenue
Code, except that "3-year property" |
19 | | as defined in Section 168(c)(2)(A) of
that Code is not |
20 | | eligible for the credit provided by this subsection |
21 | | (h); |
22 | | (C) is acquired by purchase as defined in Section |
23 | | 179(d) of the
Internal Revenue Code; and |
24 | | (D) is not eligible for the Enterprise Zone |
25 | | Investment Credit provided
by subsection (f) of this |
26 | | Section. |
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1 | | (3) The basis of qualified property shall be the basis |
2 | | used to compute
the depreciation deduction for federal |
3 | | income tax purposes. |
4 | | (4) If the basis of the property for federal income |
5 | | tax depreciation
purposes is increased after it has been |
6 | | placed in service in a federally
designated Foreign Trade |
7 | | Zone or Sub-Zone located in Illinois by the taxpayer,
the |
8 | | amount of such increase shall be deemed property placed in |
9 | | service on
the date of such increase in basis. |
10 | | (5) The term "placed in service" shall have the same |
11 | | meaning as under
Section 46 of the Internal Revenue Code. |
12 | | (6) If during any taxable year ending on or before |
13 | | December 31, 1996,
any property ceases to be qualified
|
14 | | property in the hands of the taxpayer within 48 months |
15 | | after being placed
in service, or the situs of any |
16 | | qualified property is moved outside
Illinois within 48 |
17 | | months after being placed in service, the tax imposed
|
18 | | under subsections (a) and (b) of this Section for such |
19 | | taxable year shall
be increased. Such increase shall be |
20 | | determined by (i) recomputing the
investment credit which |
21 | | would have been allowed for the year in which
credit for |
22 | | such property was originally allowed by eliminating such
|
23 | | property from such computation, and (ii) subtracting such |
24 | | recomputed credit
from the amount of credit previously |
25 | | allowed. For the purposes of this
paragraph (6), a |
26 | | reduction of the basis of qualified property resulting
|
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1 | | from a redetermination of the purchase price shall be |
2 | | deemed a disposition
of qualified property to the extent |
3 | | of such reduction. |
4 | | (7) Beginning with tax years ending after December 31, |
5 | | 1996, if a
taxpayer qualifies for the credit under this |
6 | | subsection (h) and thereby is
granted a tax abatement and |
7 | | the taxpayer relocates its entire facility in
violation of |
8 | | the explicit terms and length of the contract under |
9 | | Section
18-183 of the Property Tax Code, the tax imposed |
10 | | under subsections
(a) and (b) of this Section shall be |
11 | | increased for the taxable year
in which the taxpayer |
12 | | relocated its facility by an amount equal to the
amount of |
13 | | credit received by the taxpayer under this subsection (h). |
14 | | (h-5) High Impact Business construction jobs credit. For |
15 | | taxable years beginning on or after January 1, 2021, there |
16 | | shall also be allowed a High Impact Business construction jobs |
17 | | credit against the tax imposed under subsections (a) and (b) |
18 | | of this Section as provided in subsections (i) and (j) of |
19 | | Section 5.5 of the Illinois Enterprise Zone Act. |
20 | | The credit or credits may not reduce the taxpayer's |
21 | | liability to less than zero. If the amount of the credit or |
22 | | credits exceeds the taxpayer's liability, the excess may be |
23 | | carried forward and applied against the taxpayer's liability |
24 | | in succeeding calendar years in the manner provided under |
25 | | paragraph (4) of Section 211 of this Act. The credit or credits |
26 | | shall be applied to the earliest year for which there is a tax |
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1 | | liability. If there are credits from more than one taxable |
2 | | year that are available to offset a liability, the earlier |
3 | | credit shall be applied first. |
4 | | For partners, shareholders of Subchapter S corporations, |
5 | | and owners of limited liability companies, if the liability |
6 | | company is treated as a partnership for the purposes of |
7 | | federal and State income taxation, there shall be allowed a |
8 | | credit under this Section to be determined in accordance with |
9 | | the determination of income and distributive share of income |
10 | | under Sections 702 and 704 and Subchapter S of the Internal |
11 | | Revenue Code. |
12 | | The total aggregate amount of credits awarded under the |
13 | | Blue Collar Jobs Act (Article 20 of Public Act 101-9) shall not |
14 | | exceed $20,000,000 in any State fiscal year. |
15 | | This subsection (h-5) is exempt from the provisions of |
16 | | Section 250. |
17 | | (i) Credit for Personal Property Tax Replacement Income |
18 | | Tax.
For tax years ending prior to December 31, 2003, a credit |
19 | | shall be allowed
against the tax imposed by
subsections (a) |
20 | | and (b) of this Section for the tax imposed by subsections (c)
|
21 | | and (d) of this Section. This credit shall be computed by |
22 | | multiplying the tax
imposed by subsections (c) and (d) of this |
23 | | Section by a fraction, the numerator
of which is base income |
24 | | allocable to Illinois and the denominator of which is
Illinois |
25 | | base income, and further multiplying the product by the tax |
26 | | rate
imposed by subsections (a) and (b) of this Section. |
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1 | | Any credit earned on or after December 31, 1986 under
this |
2 | | subsection which is unused in the year
the credit is computed |
3 | | because it exceeds the tax liability imposed by
subsections |
4 | | (a) and (b) for that year (whether it exceeds the original
|
5 | | liability or the liability as later amended) may be carried |
6 | | forward and
applied to the tax liability imposed by |
7 | | subsections (a) and (b) of the 5
taxable years following the |
8 | | excess credit year, provided that no credit may
be carried |
9 | | forward to any year ending on or
after December 31, 2003. This |
10 | | credit shall be
applied first to the earliest year for which |
11 | | there is a liability. If
there is a credit under this |
12 | | subsection from more than one tax year that is
available to |
13 | | offset a liability the earliest credit arising under this
|
14 | | subsection shall be applied first. |
15 | | If, during any taxable year ending on or after December |
16 | | 31, 1986, the
tax imposed by subsections (c) and (d) of this |
17 | | Section for which a taxpayer
has claimed a credit under this |
18 | | subsection (i) is reduced, the amount of
credit for such tax |
19 | | shall also be reduced. Such reduction shall be
determined by |
20 | | recomputing the credit to take into account the reduced tax
|
21 | | imposed by subsections (c) and (d). If any portion of the
|
22 | | reduced amount of credit has been carried to a different |
23 | | taxable year, an
amended return shall be filed for such |
24 | | taxable year to reduce the amount of
credit claimed. |
25 | | (j) Training expense credit. Beginning with tax years |
26 | | ending on or
after December 31, 1986 and prior to December 31, |
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1 | | 2003, a taxpayer shall be
allowed a credit against the
tax |
2 | | imposed by subsections (a) and (b) under this Section
for all |
3 | | amounts paid or accrued, on behalf of all persons
employed by |
4 | | the taxpayer in Illinois or Illinois residents employed
|
5 | | outside of Illinois by a taxpayer, for educational or |
6 | | vocational training in
semi-technical or technical fields or |
7 | | semi-skilled or skilled fields, which
were deducted from gross |
8 | | income in the computation of taxable income. The
credit |
9 | | against the tax imposed by subsections (a) and (b) shall be |
10 | | 1.6% of
such training expenses. For partners, shareholders of |
11 | | subchapter S
corporations, and owners of limited liability |
12 | | companies, if the liability
company is treated as a |
13 | | partnership for purposes of federal and State income
taxation, |
14 | | there shall be allowed a credit under this subsection (j) to be
|
15 | | determined in accordance with the determination of income and |
16 | | distributive
share of income under Sections 702 and 704 and |
17 | | subchapter S of the Internal
Revenue Code. |
18 | | Any credit allowed under this subsection which is unused |
19 | | in the year
the credit is earned may be carried forward to each |
20 | | of the 5 taxable
years following the year for which the credit |
21 | | is first computed until it is
used. This credit shall be |
22 | | applied first to the earliest year for which
there is a |
23 | | liability. If there is a credit under this subsection from |
24 | | more
than one tax year that is available to offset a liability, |
25 | | the earliest
credit arising under this subsection shall be |
26 | | applied first. No carryforward
credit may be claimed in any |
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1 | | tax year ending on or after
December 31, 2003. |
2 | | (k) Research and development credit. For tax years ending |
3 | | after July 1, 1990 and prior to
December 31, 2003, and |
4 | | beginning again for tax years ending on or after December 31, |
5 | | 2004, and ending prior to January 1, 2027, a taxpayer shall be
|
6 | | allowed a credit against the tax imposed by subsections (a) |
7 | | and (b) of this
Section for increasing research activities in |
8 | | this State. The credit
allowed against the tax imposed by |
9 | | subsections (a) and (b) shall be equal
to 6 1/2% of the |
10 | | qualifying expenditures for increasing research activities
in |
11 | | this State. For partners, shareholders of subchapter S |
12 | | corporations, and
owners of limited liability companies, if |
13 | | the liability company is treated as a
partnership for purposes |
14 | | of federal and State income taxation, there shall be
allowed a |
15 | | credit under this subsection to be determined in accordance |
16 | | with the
determination of income and distributive share of |
17 | | income under Sections 702 and
704 and subchapter S of the |
18 | | Internal Revenue Code. |
19 | | For purposes of this subsection, "qualifying expenditures" |
20 | | means the
qualifying expenditures as defined for the federal |
21 | | credit for increasing
research activities which would be |
22 | | allowable under Section 41 of the
Internal Revenue Code and |
23 | | which are conducted in this State, "qualifying
expenditures |
24 | | for increasing research activities in this State" means the
|
25 | | excess of qualifying expenditures for the taxable year in |
26 | | which incurred
over qualifying expenditures for the base |
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1 | | period, "qualifying expenditures
for the base period" means |
2 | | the average of the qualifying expenditures for
each year in |
3 | | the base period, and "base period" means the 3 taxable years
|
4 | | immediately preceding the taxable year for which the |
5 | | determination is
being made. |
6 | | Any credit in excess of the tax liability for the taxable |
7 | | year
may be carried forward. A taxpayer may elect to have the
|
8 | | unused credit shown on its final completed return carried over |
9 | | as a credit
against the tax liability for the following 5 |
10 | | taxable years or until it has
been fully used, whichever |
11 | | occurs first; provided that no credit earned in a tax year |
12 | | ending prior to December 31, 2003 may be carried forward to any |
13 | | year ending on or after December 31, 2003. |
14 | | If an unused credit is carried forward to a given year from |
15 | | 2 or more
earlier years, that credit arising in the earliest |
16 | | year will be applied
first against the tax liability for the |
17 | | given year. If a tax liability for
the given year still |
18 | | remains, the credit from the next earliest year will
then be |
19 | | applied, and so on, until all credits have been used or no tax
|
20 | | liability for the given year remains. Any remaining unused |
21 | | credit or
credits then will be carried forward to the next |
22 | | following year in which a
tax liability is incurred, except |
23 | | that no credit can be carried forward to
a year which is more |
24 | | than 5 years after the year in which the expense for
which the |
25 | | credit is given was incurred. |
26 | | No inference shall be drawn from Public Act 91-644 in |
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1 | | construing this Section for taxable years beginning before |
2 | | January
1, 1999. |
3 | | It is the intent of the General Assembly that the research |
4 | | and development credit under this subsection (k) shall apply |
5 | | continuously for all tax years ending on or after December 31, |
6 | | 2004 and ending prior to January 1, 2027, including, but not |
7 | | limited to, the period beginning on January 1, 2016 and ending |
8 | | on July 6, 2017 (the effective date of Public Act 100-22). All |
9 | | actions taken in reliance on the continuation of the credit |
10 | | under this subsection (k) by any taxpayer are hereby |
11 | | validated. |
12 | | (l) Environmental Remediation Tax Credit. |
13 | | (i) For tax years ending after December 31, 1997 and |
14 | | on or before
December 31, 2001, a taxpayer shall be |
15 | | allowed a credit against the tax
imposed by subsections |
16 | | (a) and (b) of this Section for certain amounts paid
for |
17 | | unreimbursed eligible remediation costs, as specified in |
18 | | this subsection.
For purposes of this Section, |
19 | | "unreimbursed eligible remediation costs" means
costs |
20 | | approved by the Illinois Environmental Protection Agency |
21 | | ("Agency") under
Section 58.14 of the Environmental |
22 | | Protection Act that were paid in performing
environmental |
23 | | remediation at a site for which a No Further Remediation |
24 | | Letter
was issued by the Agency and recorded under Section |
25 | | 58.10 of the Environmental
Protection Act. The credit must |
26 | | be claimed for the taxable year in which
Agency approval |
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1 | | of the eligible remediation costs is granted. The credit |
2 | | is
not available to any taxpayer if the taxpayer or any |
3 | | related party caused or
contributed to, in any material |
4 | | respect, a release of regulated substances on,
in, or |
5 | | under the site that was identified and addressed by the |
6 | | remedial
action pursuant to the Site Remediation Program |
7 | | of the Environmental Protection
Act. After the Pollution |
8 | | Control Board rules are adopted pursuant to the
Illinois |
9 | | Administrative Procedure Act for the administration and |
10 | | enforcement of
Section 58.9 of the Environmental |
11 | | Protection Act, determinations as to credit
availability |
12 | | for purposes of this Section shall be made consistent with |
13 | | those
rules. For purposes of this Section, "taxpayer" |
14 | | includes a person whose tax
attributes the taxpayer has |
15 | | succeeded to under Section 381 of the Internal
Revenue |
16 | | Code and "related party" includes the persons disallowed a |
17 | | deduction
for losses by paragraphs (b), (c), and (f)(1) of |
18 | | Section 267 of the Internal
Revenue Code by virtue of |
19 | | being a related taxpayer, as well as any of its
partners. |
20 | | The credit allowed against the tax imposed by subsections |
21 | | (a) and
(b) shall be equal to 25% of the unreimbursed |
22 | | eligible remediation costs in
excess of $100,000 per site, |
23 | | except that the $100,000 threshold shall not apply
to any |
24 | | site contained in an enterprise zone as determined by the |
25 | | Department of
Commerce and Community Affairs (now |
26 | | Department of Commerce and Economic Opportunity). The |
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1 | | total credit allowed shall not exceed
$40,000 per year |
2 | | with a maximum total of $150,000 per site. For partners |
3 | | and
shareholders of subchapter S corporations, there shall |
4 | | be allowed a credit
under this subsection to be determined |
5 | | in accordance with the determination of
income and |
6 | | distributive share of income under Sections 702 and 704 |
7 | | and
subchapter S of the Internal Revenue Code. |
8 | | (ii) A credit allowed under this subsection that is |
9 | | unused in the year
the credit is earned may be carried |
10 | | forward to each of the 5 taxable years
following the year |
11 | | for which the credit is first earned until it is used.
The |
12 | | term "unused credit" does not include any amounts of |
13 | | unreimbursed eligible
remediation costs in excess of the |
14 | | maximum credit per site authorized under
paragraph (i). |
15 | | This credit shall be applied first to the earliest year
|
16 | | for which there is a liability. If there is a credit under |
17 | | this subsection
from more than one tax year that is |
18 | | available to offset a liability, the
earliest credit |
19 | | arising under this subsection shall be applied first. A
|
20 | | credit allowed under this subsection may be sold to a |
21 | | buyer as part of a sale
of all or part of the remediation |
22 | | site for which the credit was granted. The
purchaser of a |
23 | | remediation site and the tax credit shall succeed to the |
24 | | unused
credit and remaining carry-forward period of the |
25 | | seller. To perfect the
transfer, the assignor shall record |
26 | | the transfer in the chain of title for the
site and provide |
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1 | | written notice to the Director of the Illinois Department |
2 | | of
Revenue of the assignor's intent to sell the |
3 | | remediation site and the amount of
the tax credit to be |
4 | | transferred as a portion of the sale. In no event may a
|
5 | | credit be transferred to any taxpayer if the taxpayer or a |
6 | | related party would
not be eligible under the provisions |
7 | | of subsection (i). |
8 | | (iii) For purposes of this Section, the term "site" |
9 | | shall have the same
meaning as under Section 58.2 of the |
10 | | Environmental Protection Act. |
11 | | (m) Education expense credit. Beginning with tax years |
12 | | ending after
December 31, 1999, a taxpayer who
is the |
13 | | custodian of one or more qualifying pupils shall be allowed a |
14 | | credit
against the tax imposed by subsections (a) and (b) of |
15 | | this Section for
qualified education expenses incurred on |
16 | | behalf of the qualifying pupils.
The credit shall be equal to |
17 | | 25% of qualified education expenses, but in no
event may the |
18 | | total credit under this subsection claimed by a
family that is |
19 | | the
custodian of qualifying pupils exceed (i) $500 for tax |
20 | | years ending prior to December 31, 2017, and (ii) $750 for tax |
21 | | years ending on or after December 31, 2017. In no event shall a |
22 | | credit under
this subsection reduce the taxpayer's liability |
23 | | under this Act to less than
zero. Notwithstanding any other |
24 | | provision of law, for taxable years beginning on or after |
25 | | January 1, 2017, no taxpayer may claim a credit under this |
26 | | subsection (m) if the taxpayer's adjusted gross income for the |
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1 | | taxable year exceeds (i) $500,000, in the case of spouses |
2 | | filing a joint federal tax return or (ii) $250,000, in the case |
3 | | of all other taxpayers. This subsection is exempt from the |
4 | | provisions of Section 250 of this
Act. |
5 | | For purposes of this subsection: |
6 | | "Qualifying pupils" means individuals who (i) are |
7 | | residents of the State of
Illinois, (ii) are under the age of |
8 | | 21 at the close of the school year for
which a credit is |
9 | | sought, and (iii) during the school year for which a credit
is |
10 | | sought were full-time pupils enrolled in a kindergarten |
11 | | through twelfth
grade education program at any school, as |
12 | | defined in this subsection. |
13 | | "Qualified education expense" means the amount incurred
on |
14 | | behalf of a qualifying pupil in excess of $250 for tuition, |
15 | | book fees, and
lab fees at the school in which the pupil is |
16 | | enrolled during the regular school
year. |
17 | | "School" means any public or nonpublic elementary or |
18 | | secondary school in
Illinois that is in compliance with Title |
19 | | VI of the Civil Rights Act of 1964
and attendance at which |
20 | | satisfies the requirements of Section 26-1 of the
School Code, |
21 | | except that nothing shall be construed to require a child to
|
22 | | attend any particular public or nonpublic school to qualify |
23 | | for the credit
under this Section. |
24 | | "Custodian" means, with respect to qualifying pupils, an |
25 | | Illinois resident
who is a parent, the parents, a legal |
26 | | guardian, or the legal guardians of the
qualifying pupils. |
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1 | | (n) River Edge Redevelopment Zone site remediation tax |
2 | | credit.
|
3 | | (i) For tax years ending on or after December 31, |
4 | | 2006, a taxpayer shall be allowed a credit against the tax |
5 | | imposed by subsections (a) and (b) of this Section for |
6 | | certain amounts paid for unreimbursed eligible remediation |
7 | | costs, as specified in this subsection. For purposes of |
8 | | this Section, "unreimbursed eligible remediation costs" |
9 | | means costs approved by the Illinois Environmental |
10 | | Protection Agency ("Agency") under Section 58.14a of the |
11 | | Environmental Protection Act that were paid in performing |
12 | | environmental remediation at a site within a River Edge |
13 | | Redevelopment Zone for which a No Further Remediation |
14 | | Letter was issued by the Agency and recorded under Section |
15 | | 58.10 of the Environmental Protection Act. The credit must |
16 | | be claimed for the taxable year in which Agency approval |
17 | | of the eligible remediation costs is granted. The credit |
18 | | is not available to any taxpayer if the taxpayer or any |
19 | | related party caused or contributed to, in any material |
20 | | respect, a release of regulated substances on, in, or |
21 | | under the site that was identified and addressed by the |
22 | | remedial action pursuant to the Site Remediation Program |
23 | | of the Environmental Protection Act. Determinations as to |
24 | | credit availability for purposes of this Section shall be |
25 | | made consistent with rules adopted by the Pollution |
26 | | Control Board pursuant to the Illinois Administrative |
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1 | | Procedure Act for the administration and enforcement of |
2 | | Section 58.9 of the Environmental Protection Act. For |
3 | | purposes of this Section, "taxpayer" includes a person |
4 | | whose tax attributes the taxpayer has succeeded to under |
5 | | Section 381 of the Internal Revenue Code and "related |
6 | | party" includes the persons disallowed a deduction for |
7 | | losses by paragraphs (b), (c), and (f)(1) of Section 267 |
8 | | of the Internal Revenue Code by virtue of being a related |
9 | | taxpayer, as well as any of its partners. The credit |
10 | | allowed against the tax imposed by subsections (a) and (b) |
11 | | shall be equal to 25% of the unreimbursed eligible |
12 | | remediation costs in excess of $100,000 per site. |
13 | | (ii) A credit allowed under this subsection that is |
14 | | unused in the year the credit is earned may be carried |
15 | | forward to each of the 5 taxable years following the year |
16 | | for which the credit is first earned until it is used. This |
17 | | credit shall be applied first to the earliest year for |
18 | | which there is a liability. If there is a credit under this |
19 | | subsection from more than one tax year that is available |
20 | | to offset a liability, the earliest credit arising under |
21 | | this subsection shall be applied first. A credit allowed |
22 | | under this subsection may be sold to a buyer as part of a |
23 | | sale of all or part of the remediation site for which the |
24 | | credit was granted. The purchaser of a remediation site |
25 | | and the tax credit shall succeed to the unused credit and |
26 | | remaining carry-forward period of the seller. To perfect |
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1 | | the transfer, the assignor shall record the transfer in |
2 | | the chain of title for the site and provide written notice |
3 | | to the Director of the Illinois Department of Revenue of |
4 | | the assignor's intent to sell the remediation site and the |
5 | | amount of the tax credit to be transferred as a portion of |
6 | | the sale. In no event may a credit be transferred to any |
7 | | taxpayer if the taxpayer or a related party would not be |
8 | | eligible under the provisions of subsection (i). |
9 | | (iii) For purposes of this Section, the term "site" |
10 | | shall have the same meaning as under Section 58.2 of the |
11 | | Environmental Protection Act. |
12 | | (o) For each of taxable years during the Compassionate Use |
13 | | of Medical Cannabis Program, a surcharge is imposed on all |
14 | | taxpayers on income arising from the sale or exchange of |
15 | | capital assets, depreciable business property, real property |
16 | | used in the trade or business, and Section 197 intangibles of |
17 | | an organization registrant under the Compassionate Use of |
18 | | Medical Cannabis Program Act. The amount of the surcharge is |
19 | | equal to the amount of federal income tax liability for the |
20 | | taxable year attributable to those sales and exchanges. The |
21 | | surcharge imposed does not apply if: |
22 | | (1) the medical cannabis cultivation center |
23 | | registration, medical cannabis dispensary registration, or |
24 | | the property of a registration is transferred as a result |
25 | | of any of the following: |
26 | | (A) bankruptcy, a receivership, or a debt |
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1 | | adjustment initiated by or against the initial |
2 | | registration or the substantial owners of the initial |
3 | | registration; |
4 | | (B) cancellation, revocation, or termination of |
5 | | any registration by the Illinois Department of Public |
6 | | Health; |
7 | | (C) a determination by the Illinois Department of |
8 | | Public Health that transfer of the registration is in |
9 | | the best interests of Illinois qualifying patients as |
10 | | defined by the Compassionate Use of Medical Cannabis |
11 | | Program Act; |
12 | | (D) the death of an owner of the equity interest in |
13 | | a registrant; |
14 | | (E) the acquisition of a controlling interest in |
15 | | the stock or substantially all of the assets of a |
16 | | publicly traded company; |
17 | | (F) a transfer by a parent company to a wholly |
18 | | owned subsidiary; or |
19 | | (G) the transfer or sale to or by one person to |
20 | | another person where both persons were initial owners |
21 | | of the registration when the registration was issued; |
22 | | or |
23 | | (2) the cannabis cultivation center registration, |
24 | | medical cannabis dispensary registration, or the |
25 | | controlling interest in a registrant's property is |
26 | | transferred in a transaction to lineal descendants in |
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1 | | which no gain or loss is recognized or as a result of a |
2 | | transaction in accordance with Section 351 of the Internal |
3 | | Revenue Code in which no gain or loss is recognized. |
4 | | (p) Pass-through entity tax. |
5 | | (1) For taxable years ending on or after December 31, |
6 | | 2021 and beginning prior to January 1, 2026, a partnership |
7 | | (other than a publicly traded partnership under Section |
8 | | 7704 of the Internal Revenue Code) or Subchapter S |
9 | | corporation may elect to apply the provisions of this |
10 | | subsection. A separate election shall be made for each |
11 | | taxable year. Such election shall be made at such time, |
12 | | and in such form and manner as prescribed by the |
13 | | Department, and, once made, is irrevocable. |
14 | | (2) Entity-level tax. A partnership or Subchapter S |
15 | | corporation electing to apply the provisions of this |
16 | | subsection shall be subject to a tax for the privilege of |
17 | | earning or receiving income in this State in an amount |
18 | | equal to 4.95% of the taxpayer's net income for the |
19 | | taxable year. |
20 | | (3) Net income defined. |
21 | | (A) In general. For purposes of paragraph (2), the |
22 | | term net income has the same meaning as defined in |
23 | | Section 202 of this Act, except that , for tax years |
24 | | ending on or after December 31, 2023, a deduction |
25 | | shall be allowed in computing base income for |
26 | | distributions to a retired partner to the extent that |
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1 | | the partner's distributions are exempt from tax under |
2 | | Section 203(a)(2)(F) of this Act. In addition, the |
3 | | following modifications provisions shall not apply: |
4 | | (i) the standard exemption allowed under |
5 | | Section 204; |
6 | | (ii) the deduction for net losses allowed |
7 | | under Section 207; |
8 | | (iii) in the case of an S corporation, the |
9 | | modification under Section 203(b)(2)(S); and |
10 | | (iv) in the case of a partnership, the |
11 | | modifications under Section 203(d)(2)(H) and |
12 | | Section 203(d)(2)(I). |
13 | | (B) Special rule for tiered partnerships. If a |
14 | | taxpayer making the election under paragraph (1) is a |
15 | | partner of another taxpayer making the election under |
16 | | paragraph (1), net income shall be computed as |
17 | | provided in subparagraph (A), except that the taxpayer |
18 | | shall subtract its distributive share of the net |
19 | | income of the electing partnership (including its |
20 | | distributive share of the net income of the electing |
21 | | partnership derived as a distributive share from |
22 | | electing partnerships in which it is a partner). |
23 | | (4) Credit for entity level tax. Each partner or |
24 | | shareholder of a taxpayer making the election under this |
25 | | Section shall be allowed a credit against the tax imposed |
26 | | under subsections (a) and (b) of Section 201 of this Act |
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1 | | for the taxable year of the partnership or Subchapter S |
2 | | corporation for which an election is in effect ending |
3 | | within or with the taxable year of the partner or |
4 | | shareholder in an amount equal to 4.95% times the partner |
5 | | or shareholder's distributive share of the net income of |
6 | | the electing partnership or Subchapter S corporation, but |
7 | | not to exceed the partner's or shareholder's share of the |
8 | | tax imposed under paragraph (1) which is actually paid by |
9 | | the partnership or Subchapter S corporation. If the |
10 | | taxpayer is a partnership or Subchapter S corporation that |
11 | | is itself a partner of a partnership making the election |
12 | | under paragraph (1), the credit under this paragraph shall |
13 | | be allowed to the taxpayer's partners or shareholders (or |
14 | | if the partner is a partnership or Subchapter S |
15 | | corporation then its partners or shareholders) in |
16 | | accordance with the determination of income and |
17 | | distributive share of income under Sections 702 and 704 |
18 | | and Subchapter S of the Internal Revenue Code. If the |
19 | | amount of the credit allowed under this paragraph exceeds |
20 | | the partner's or shareholder's liability for tax imposed |
21 | | under subsections (a) and (b) of Section 201 of this Act |
22 | | for the taxable year, such excess shall be treated as an |
23 | | overpayment for purposes of Section 909 of this Act. |
24 | | (5) Nonresidents. A nonresident individual who is a |
25 | | partner or shareholder of a partnership or Subchapter S |
26 | | corporation for a taxable year for which an election is in |
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1 | | effect under paragraph (1) shall not be required to file |
2 | | an income tax return under this Act for such taxable year |
3 | | if the only source of net income of the individual (or the |
4 | | individual and the individual's spouse in the case of a |
5 | | joint return) is from an entity making the election under |
6 | | paragraph (1) and the credit allowed to the partner or |
7 | | shareholder under paragraph (4) equals or exceeds the |
8 | | individual's liability for the tax imposed under |
9 | | subsections (a) and (b) of Section 201 of this Act for the |
10 | | taxable year. |
11 | | (6) Liability for tax. Except as provided in this |
12 | | paragraph, a partnership or Subchapter S making the |
13 | | election under paragraph (1) is liable for the |
14 | | entity-level tax imposed under paragraph (2). If the |
15 | | electing partnership or corporation fails to pay the full |
16 | | amount of tax deemed assessed under paragraph (2), the |
17 | | partners or shareholders shall be liable to pay the tax |
18 | | assessed (including penalties and interest). Each partner |
19 | | or shareholder shall be liable for the unpaid assessment |
20 | | based on the ratio of the partner's or shareholder's share |
21 | | of the net income of the partnership over the total net |
22 | | income of the partnership. If the partnership or |
23 | | Subchapter S corporation fails to pay the tax assessed |
24 | | (including penalties and interest) and thereafter an |
25 | | amount of such tax is paid by the partners or |
26 | | shareholders, such amount shall not be collected from the |
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1 | | partnership or corporation. |
2 | | (7) Foreign tax. For purposes of the credit allowed |
3 | | under Section 601(b)(3) of this Act, tax paid by a |
4 | | partnership or Subchapter S corporation to another state |
5 | | which, as determined by the Department, is substantially |
6 | | similar to the tax imposed under this subsection, shall be |
7 | | considered tax paid by the partner or shareholder to the |
8 | | extent that the partner's or shareholder's share of the |
9 | | income of the partnership or Subchapter S corporation |
10 | | allocated and apportioned to such other state bears to the |
11 | | total income of the partnership or Subchapter S |
12 | | corporation allocated or apportioned to such other state. |
13 | | (8) Suspension of withholding. The provisions of |
14 | | Section 709.5 of this Act shall not apply to a partnership |
15 | | or Subchapter S corporation for the taxable year for which |
16 | | an election under paragraph (1) is in effect. |
17 | | (9) Requirement to pay estimated tax. For each taxable |
18 | | year for which an election under paragraph (1) is in |
19 | | effect, a partnership or Subchapter S corporation is |
20 | | required to pay estimated tax for such taxable year under |
21 | | Sections 803 and 804 of this Act if the amount payable as |
22 | | estimated tax can reasonably be expected to exceed $500. |
23 | | (10) The provisions of this subsection shall apply |
24 | | only with respect to taxable years for which the |
25 | | limitation on individual deductions applies under Section |
26 | | 164(b)(6) of the Internal Revenue Code. |
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1 | | (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; |
2 | | 101-207, eff. 8-2-19; 101-363, eff. 8-9-19; 102-558, eff. |
3 | | 8-20-21; 102-658, eff. 8-27-21.) |
4 | | ARTICLE 995. NON-ACCELERATION |
5 | | Section 995-95. No acceleration or delay. Where this Act |
6 | | makes changes in a statute that is represented in this Act by |
7 | | text that is not yet or no longer in effect (for example, a |
8 | | Section represented by multiple versions), the use of that |
9 | | text does not accelerate or delay the taking effect of (i) the |
10 | | changes made by this Act or (ii) provisions derived from any |
11 | | other Public Act. |
12 | | ARTICLE 999. EFFECTIVE DATE
|
13 | | Section 999-99. Effective date. This Act takes effect upon |
14 | | becoming law, except that Article 20 takes effect on July 1, |
15 | | 2023 and Articles 55 and 100 take effect on January 1, 2024.".
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