(35 ILCS 120/2-5)
(Text of Section from P.A. 103-9, Article 5, Section 5-20) Sec. 2-5. Exemptions. Gross receipts from proceeds from the sale of
the following tangible personal property are exempt from the tax imposed
by this Act:
(1) Farm chemicals.
(2) Farm machinery and equipment, both new and used, |
| including that manufactured on special order, certified by the purchaser to be used primarily for production agriculture or State or federal agricultural programs, including individual replacement parts for the machinery and equipment, including machinery and equipment purchased for lease, and including implements of husbandry defined in Section 1-130 of the Illinois Vehicle Code, farm machinery and agricultural chemical and fertilizer spreaders, and nurse wagons required to be registered under Section 3-809 of the Illinois Vehicle Code, but excluding other motor vehicles required to be registered under the Illinois Vehicle Code. Horticultural polyhouses or hoop houses used for propagating, growing, or overwintering plants shall be considered farm machinery and equipment under this item (2). Agricultural chemical tender tanks and dry boxes shall include units sold separately from a motor vehicle required to be licensed and units sold mounted on a motor vehicle required to be licensed, if the selling price of the tender is separately stated.
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Farm machinery and equipment shall include precision
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| farming equipment that is installed or purchased to be installed on farm machinery and equipment including, but not limited to, tractors, harvesters, sprayers, planters, seeders, or spreaders. Precision farming equipment includes, but is not limited to, soil testing sensors, computers, monitors, software, global positioning and mapping systems, and other such equipment.
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Farm machinery and equipment also includes computers,
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| sensors, software, and related equipment used primarily in the computer-assisted operation of production agriculture facilities, equipment, and activities such as, but not limited to, the collection, monitoring, and correlation of animal and crop data for the purpose of formulating animal diets and agricultural chemicals. This item (2) is exempt from the provisions of Section 2-70.
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(3) Until July 1, 2003, distillation machinery and
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| equipment, sold as a unit or kit, assembled or installed by the retailer, certified by the user to be used only for the production of ethyl alcohol that will be used for consumption as motor fuel or as a component of motor fuel for the personal use of the user, and not subject to sale or resale.
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(4) Until July 1, 2003 and beginning again September
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| 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including repair and replacement parts, both new and used, and including that manufactured on special order or purchased for lease, certified by the purchaser to be used primarily for graphic arts production. Equipment includes chemicals or chemicals acting as catalysts but only if the chemicals or chemicals acting as catalysts effect a direct and immediate change upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under paragraph (14).
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(5) A motor vehicle that is used for automobile
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| renting, as defined in the Automobile Renting Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 2-70.
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(6) Personal property sold by a teacher-sponsored
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| student organization affiliated with an elementary or secondary school located in Illinois.
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(7) Until July 1, 2003, proceeds of that portion of
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| the selling price of a passenger car the sale of which is subject to the Replacement Vehicle Tax.
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(8) Personal property sold to an Illinois county fair
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| association for use in conducting, operating, or promoting the county fair.
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(9) Personal property sold to a not-for-profit arts
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| or cultural organization that establishes, by proof required by the Department by rule, that it has received an exemption under Section 501(c)(3) of the Internal Revenue Code and that is organized and operated primarily for the presentation or support of arts or cultural programming, activities, or services. These organizations include, but are not limited to, music and dramatic arts organizations such as symphony orchestras and theatrical groups, arts and cultural service organizations, local arts councils, visual arts organizations, and media arts organizations. On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not make tax-free purchases unless it has an active identification number issued by the Department.
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(10) Personal property sold by a corporation,
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| society, association, foundation, institution, or organization, other than a limited liability company, that is organized and operated as a not-for-profit service enterprise for the benefit of persons 65 years of age or older if the personal property was not purchased by the enterprise for the purpose of resale by the enterprise.
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(11) Personal property sold to a governmental body,
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| to a corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes, or to a not-for-profit corporation, society, association, foundation, institution, or organization that has no compensated officers or employees and that is organized and operated primarily for the recreation of persons 55 years of age or older. A limited liability company may qualify for the exemption under this paragraph only if the limited liability company is organized and operated exclusively for educational purposes. On and after July 1, 1987, however, no entity otherwise eligible for this exemption shall make tax-free purchases unless it has an active identification number issued by the Department.
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(12) (Blank).
(12-5) On and after July 1, 2003 and through June 30,
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| 2004, motor vehicles of the second division with a gross vehicle weight in excess of 8,000 pounds that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code. Beginning on July 1, 2004 and through June 30, 2005, the use in this State of motor vehicles of the second division: (i) with a gross vehicle weight rating in excess of 8,000 pounds; (ii) that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code; and (iii) that are primarily used for commercial purposes. Through June 30, 2005, this exemption applies to repair and replacement parts added after the initial purchase of such a motor vehicle if that motor vehicle is used in a manner that would qualify for the rolling stock exemption otherwise provided for in this Act. For purposes of this paragraph, "used for commercial purposes" means the transportation of persons or property in furtherance of any commercial or industrial enterprise whether for-hire or not.
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(13) Proceeds from sales to owners, lessors, or
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| shippers of tangible personal property that is utilized by interstate carriers for hire for use as rolling stock moving in interstate commerce and equipment operated by a telecommunications provider, licensed as a common carrier by the Federal Communications Commission, which is permanently installed in or affixed to aircraft moving in interstate commerce.
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(14) Machinery and equipment that will be used by the
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| purchaser, or a lessee of the purchaser, primarily in the process of manufacturing or assembling tangible personal property for wholesale or retail sale or lease, whether the sale or lease is made directly by the manufacturer or by some other person, whether the materials used in the process are owned by the manufacturer or some other person, or whether the sale or lease is made apart from or as an incident to the seller's engaging in the service occupation of producing machines, tools, dies, jigs, patterns, gauges, or other similar items of no commercial value on special order for a particular purchaser. The exemption provided by this paragraph (14) does not include machinery and equipment used in (i) the generation of electricity for wholesale or retail sale; (ii) the generation or treatment of natural or artificial gas for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains; or (iii) the treatment of water for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains. The provisions of Public Act 98-583 are declaratory of existing law as to the meaning and scope of this exemption. Beginning on July 1, 2017, the exemption provided by this paragraph (14) includes, but is not limited to, graphic arts machinery and equipment, as defined in paragraph (4) of this Section.
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(15) Proceeds of mandatory service charges separately
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| stated on customers' bills for purchase and consumption of food and beverages, to the extent that the proceeds of the service charge are in fact turned over as tips or as a substitute for tips to the employees who participate directly in preparing, serving, hosting or cleaning up the food or beverage function with respect to which the service charge is imposed.
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(16) Tangible personal property sold to a purchaser
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| if the purchaser is exempt from use tax by operation of federal law. This paragraph is exempt from the provisions of Section 2-70.
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(17) Tangible personal property sold to a common
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| carrier by rail or motor that receives the physical possession of the property in Illinois and that transports the property, or shares with another common carrier in the transportation of the property, out of Illinois on a standard uniform bill of lading showing the seller of the property as the shipper or consignor of the property to a destination outside Illinois, for use outside Illinois.
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(18) Legal tender, currency, medallions, or gold or
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| silver coinage issued by the State of Illinois, the government of the United States of America, or the government of any foreign country, and bullion.
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(19) Until July 1, 2003, oil field exploration,
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| drilling, and production equipment, including (i) rigs and parts of rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and tubular goods, including casing and drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow lines, (v) any individual replacement part for oil field exploration, drilling, and production equipment, and (vi) machinery and equipment purchased for lease; but excluding motor vehicles required to be registered under the Illinois Vehicle Code.
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(20) Photoprocessing machinery and equipment,
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| including repair and replacement parts, both new and used, including that manufactured on special order, certified by the purchaser to be used primarily for photoprocessing, and including photoprocessing machinery and equipment purchased for lease.
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(21) Until July 1, 2028, coal and aggregate
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| exploration, mining, off-highway hauling, processing, maintenance, and reclamation equipment, including replacement parts and equipment, and including equipment purchased for lease, but excluding motor vehicles required to be registered under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456) for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
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(22) Until June 30, 2013, fuel and petroleum products
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| sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight destined for or returning from a location or locations outside the United States without regard to previous or subsequent domestic stopovers.
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Beginning July 1, 2013, fuel and petroleum products
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| sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
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(23) A transaction in which the purchase order is
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| received by a florist who is located outside Illinois, but who has a florist located in Illinois deliver the property to the purchaser or the purchaser's donee in Illinois.
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(24) Fuel consumed or used in the operation of ships,
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| barges, or vessels that are used primarily in or for the transportation of property or the conveyance of persons for hire on rivers bordering on this State if the fuel is delivered by the seller to the purchaser's barge, ship, or vessel while it is afloat upon that bordering river.
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(25) Except as provided in item (25-5) of this
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| Section, a motor vehicle sold in this State to a nonresident even though the motor vehicle is delivered to the nonresident in this State, if the motor vehicle is not to be titled in this State, and if a drive-away permit is issued to the motor vehicle as provided in Section 3-603 of the Illinois Vehicle Code or if the nonresident purchaser has vehicle registration plates to transfer to the motor vehicle upon returning to his or her home state. The issuance of the drive-away permit or having the out-of-state registration plates to be transferred is prima facie evidence that the motor vehicle will not be titled in this State.
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(25-5) The exemption under item (25) does not apply
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| if the state in which the motor vehicle will be titled does not allow a reciprocal exemption for a motor vehicle sold and delivered in that state to an Illinois resident but titled in Illinois. The tax collected under this Act on the sale of a motor vehicle in this State to a resident of another state that does not allow a reciprocal exemption shall be imposed at a rate equal to the state's rate of tax on taxable property in the state in which the purchaser is a resident, except that the tax shall not exceed the tax that would otherwise be imposed under this Act. At the time of the sale, the purchaser shall execute a statement, signed under penalty of perjury, of his or her intent to title the vehicle in the state in which the purchaser is a resident within 30 days after the sale and of the fact of the payment to the State of Illinois of tax in an amount equivalent to the state's rate of tax on taxable property in his or her state of residence and shall submit the statement to the appropriate tax collection agency in his or her state of residence. In addition, the retailer must retain a signed copy of the statement in his or her records. Nothing in this item shall be construed to require the removal of the vehicle from this state following the filing of an intent to title the vehicle in the purchaser's state of residence if the purchaser titles the vehicle in his or her state of residence within 30 days after the date of sale. The tax collected under this Act in accordance with this item (25-5) shall be proportionately distributed as if the tax were collected at the 6.25% general rate imposed under this Act.
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(25-7) Beginning on July 1, 2007, no tax is imposed
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| under this Act on the sale of an aircraft, as defined in Section 3 of the Illinois Aeronautics Act, if all of the following conditions are met:
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(1) the aircraft leaves this State within 15 days
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| after the later of either the issuance of the final billing for the sale of the aircraft, or the authorized approval for return to service, completion of the maintenance record entry, and completion of the test flight and ground test for inspection, as required by 14 CFR 91.407;
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(2) the aircraft is not based or registered in
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| this State after the sale of the aircraft; and
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(3) the seller retains in his or her books and
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| records and provides to the Department a signed and dated certification from the purchaser, on a form prescribed by the Department, certifying that the requirements of this item (25-7) are met. The certificate must also include the name and address of the purchaser, the address of the location where the aircraft is to be titled or registered, the address of the primary physical location of the aircraft, and other information that the Department may reasonably require.
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For purposes of this item (25-7):
"Based in this State" means hangared, stored, or
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| otherwise used, excluding post-sale customizations as defined in this Section, for 10 or more days in each 12-month period immediately following the date of the sale of the aircraft.
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"Registered in this State" means an aircraft
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| registered with the Department of Transportation, Aeronautics Division, or titled or registered with the Federal Aviation Administration to an address located in this State.
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This paragraph (25-7) is exempt from the provisions
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(26) Semen used for artificial insemination of
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| livestock for direct agricultural production.
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(27) Horses, or interests in horses, registered with
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| and meeting the requirements of any of the Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter Horse Association, United States Trotting Association, or Jockey Club, as appropriate, used for purposes of breeding or racing for prizes. This item (27) is exempt from the provisions of Section 2-70, and the exemption provided for under this item (27) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88) for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
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(28) Computers and communications equipment utilized
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| for any hospital purpose and equipment used in the diagnosis, analysis, or treatment of hospital patients sold to a lessor who leases the equipment, under a lease of one year or longer executed or in effect at the time of the purchase, to a hospital that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.
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(29) Personal property sold to a lessor who leases
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| the property, under a lease of one year or longer executed or in effect at the time of the purchase, to a governmental body that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.
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(30) Beginning with taxable years ending on or after
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| December 31, 1995 and ending with taxable years ending on or before December 31, 2004, personal property that is donated for disaster relief to be used in a State or federally declared disaster area in Illinois or bordering Illinois by a manufacturer or retailer that is registered in this State to a corporation, society, association, foundation, or institution that has been issued a sales tax exemption identification number by the Department that assists victims of the disaster who reside within the declared disaster area.
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(31) Beginning with taxable years ending on or after
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| December 31, 1995 and ending with taxable years ending on or before December 31, 2004, personal property that is used in the performance of infrastructure repairs in this State, including but not limited to municipal roads and streets, access roads, bridges, sidewalks, waste disposal systems, water and sewer line extensions, water distribution and purification facilities, storm water drainage and retention facilities, and sewage treatment facilities, resulting from a State or federally declared disaster in Illinois or bordering Illinois when such repairs are initiated on facilities located in the declared disaster area within 6 months after the disaster.
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(32) Beginning July 1, 1999, game or game birds sold
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| at a "game breeding and hunting preserve area" as that term is used in the Wildlife Code. This paragraph is exempt from the provisions of Section 2-70.
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(33) A motor vehicle, as that term is defined in
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| Section 1-146 of the Illinois Vehicle Code, that is donated to a corporation, limited liability company, society, association, foundation, or institution that is determined by the Department to be organized and operated exclusively for educational purposes. For purposes of this exemption, "a corporation, limited liability company, society, association, foundation, or institution organized and operated exclusively for educational purposes" means all tax-supported public schools, private schools that offer systematic instruction in useful branches of learning by methods common to public schools and that compare favorably in their scope and intensity with the course of study presented in tax-supported schools, and vocational or technical schools or institutes organized and operated exclusively to provide a course of study of not less than 6 weeks duration and designed to prepare individuals to follow a trade or to pursue a manual, technical, mechanical, industrial, business, or commercial occupation.
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(34) Beginning January 1, 2000, personal property,
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| including food, purchased through fundraising events for the benefit of a public or private elementary or secondary school, a group of those schools, or one or more school districts if the events are sponsored by an entity recognized by the school district that consists primarily of volunteers and includes parents and teachers of the school children. This paragraph does not apply to fundraising events (i) for the benefit of private home instruction or (ii) for which the fundraising entity purchases the personal property sold at the events from another individual or entity that sold the property for the purpose of resale by the fundraising entity and that profits from the sale to the fundraising entity. This paragraph is exempt from the provisions of Section 2-70.
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(35) Beginning January 1, 2000 and through December
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| 31, 2001, new or used automatic vending machines that prepare and serve hot food and beverages, including coffee, soup, and other items, and replacement parts for these machines. Beginning January 1, 2002 and through June 30, 2003, machines and parts for machines used in commercial, coin-operated amusement and vending business if a use or occupation tax is paid on the gross receipts derived from the use of the commercial, coin-operated amusement and vending machines. This paragraph is exempt from the provisions of Section 2-70.
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(35-5) Beginning August 23, 2001 and through June 30,
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| 2016, food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances, and insulin, urine testing materials, syringes, and needles used by diabetics, for human use, when purchased for use by a person receiving medical assistance under Article V of the Illinois Public Aid Code who resides in a licensed long-term care facility, as defined in the Nursing Home Care Act, or a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
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(36) Beginning August 2, 2001, computers and
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| communications equipment utilized for any hospital purpose and equipment used in the diagnosis, analysis, or treatment of hospital patients sold to a lessor who leases the equipment, under a lease of one year or longer executed or in effect at the time of the purchase, to a hospital that has been issued an active tax exemption identification number by the Department under Section 1g of this Act. This paragraph is exempt from the provisions of Section 2-70.
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(37) Beginning August 2, 2001, personal property sold
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| to a lessor who leases the property, under a lease of one year or longer executed or in effect at the time of the purchase, to a governmental body that has been issued an active tax exemption identification number by the Department under Section 1g of this Act. This paragraph is exempt from the provisions of Section 2-70.
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(38) Beginning on January 1, 2002 and through June
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| 30, 2016, tangible personal property purchased from an Illinois retailer by a taxpayer engaged in centralized purchasing activities in Illinois who will, upon receipt of the property in Illinois, temporarily store the property in Illinois (i) for the purpose of subsequently transporting it outside this State for use or consumption thereafter solely outside this State or (ii) for the purpose of being processed, fabricated, or manufactured into, attached to, or incorporated into other tangible personal property to be transported outside this State and thereafter used or consumed solely outside this State. The Director of Revenue shall, pursuant to rules adopted in accordance with the Illinois Administrative Procedure Act, issue a permit to any taxpayer in good standing with the Department who is eligible for the exemption under this paragraph (38). The permit issued under this paragraph (38) shall authorize the holder, to the extent and in the manner specified in the rules adopted under this Act, to purchase tangible personal property from a retailer exempt from the taxes imposed by this Act. Taxpayers shall maintain all necessary books and records to substantiate the use and consumption of all such tangible personal property outside of the State of Illinois.
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(39) Beginning January 1, 2008, tangible personal
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| property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 2-70.
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(40) Beginning January 1, 2010 and continuing through
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| December 31, 2029, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft. However, until January 1, 2024, this exemption excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films.
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Beginning January 1, 2010 and continuing through
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| December 31, 2023, this exemption applies only to the sale of qualifying tangible personal property to persons who modify, refurbish, complete, replace, or maintain an aircraft and who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. From January 1, 2024 through December 31, 2029, this exemption applies only to the use of qualifying tangible personal property by: (A) persons who modify, refurbish, complete, repair, replace, or maintain aircraft and who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations; and (B) persons who engage in the modification, replacement, repair, and maintenance of aircraft engines or power plants without regard to whether or not those persons meet the qualifications of item (A).
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The changes made to this paragraph (40) by Public Act
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| 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (40) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
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(41) Tangible personal property sold to a
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| public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall. This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code. This paragraph is exempt from the provisions of Section 2-70.
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(42) Beginning January 1, 2017 and through December
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| 31, 2026, menstrual pads, tampons, and menstrual cups.
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(43) Merchandise that is subject to the Rental
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| Purchase Agreement Occupation and Use Tax. The purchaser must certify that the item is purchased to be rented subject to a rental purchase agreement, as defined in the Rental Purchase Agreement Act, and provide proof of registration under the Rental Purchase Agreement Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 2-70.
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(44) Qualified tangible personal property used in the
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| construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant. Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
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The Department of Commerce and Economic Opportunity
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| shall grant a certificate of exemption under this item (44) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois.
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For the purposes of this item (44):
"Data center" means a building or a series of
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| buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
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"Qualified tangible personal property" means:
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| electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center. The term "qualified tangible personal property" also includes building materials physically incorporated into the qualifying data center. To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
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This item (44) is exempt from the provisions of
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(45) Beginning January 1, 2020 and through December
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| 31, 2020, sales of tangible personal property made by a marketplace seller over a marketplace for which tax is due under this Act but for which use tax has been collected and remitted to the Department by a marketplace facilitator under Section 2d of the Use Tax Act are exempt from tax under this Act. A marketplace seller claiming this exemption shall maintain books and records demonstrating that the use tax on such sales has been collected and remitted by a marketplace facilitator. Marketplace sellers that have properly remitted tax under this Act on such sales may file a claim for credit as provided in Section 6 of this Act. No claim is allowed, however, for such taxes for which a credit or refund has been issued to the marketplace facilitator under the Use Tax Act, or for which the marketplace facilitator has filed a claim for credit or refund under the Use Tax Act.
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(46) Beginning July 1, 2022, breast pumps, breast
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| pump collection and storage supplies, and breast pump kits. This item (46) is exempt from the provisions of Section 2-70. As used in this item (46):
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"Breast pump" means an electrically controlled or
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| manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
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"Breast pump collection and storage supplies" means
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| items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
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"Breast pump collection and storage supplies"
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| includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
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"Breast pump collection and storage supplies" does
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| not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
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"Breast pump kit" means a kit that: (1) contains no
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| more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
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(47) Tangible personal property sold by or on behalf
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| of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act. This item (47) is exempt from the provisions of Section 2-70.
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(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section 5-20, eff. 6-7-23.)
(Text of Section from P.A. 103-9, Article 15, Section 15-20)
Sec. 2-5. Exemptions. Gross receipts from proceeds from the sale of
the following tangible personal property are exempt from the tax imposed
by this Act:
(1) Farm chemicals.
(2) Farm machinery and equipment, both new and used,
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| including that manufactured on special order, certified by the purchaser to be used primarily for production agriculture or State or federal agricultural programs, including individual replacement parts for the machinery and equipment, including machinery and equipment purchased for lease, and including implements of husbandry defined in Section 1-130 of the Illinois Vehicle Code, farm machinery and agricultural chemical and fertilizer spreaders, and nurse wagons required to be registered under Section 3-809 of the Illinois Vehicle Code, but excluding other motor vehicles required to be registered under the Illinois Vehicle Code. Horticultural polyhouses or hoop houses used for propagating, growing, or overwintering plants shall be considered farm machinery and equipment under this item (2). Agricultural chemical tender tanks and dry boxes shall include units sold separately from a motor vehicle required to be licensed and units sold mounted on a motor vehicle required to be licensed, if the selling price of the tender is separately stated.
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Farm machinery and equipment shall include precision
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| farming equipment that is installed or purchased to be installed on farm machinery and equipment including, but not limited to, tractors, harvesters, sprayers, planters, seeders, or spreaders. Precision farming equipment includes, but is not limited to, soil testing sensors, computers, monitors, software, global positioning and mapping systems, and other such equipment.
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Farm machinery and equipment also includes computers,
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| sensors, software, and related equipment used primarily in the computer-assisted operation of production agriculture facilities, equipment, and activities such as, but not limited to, the collection, monitoring, and correlation of animal and crop data for the purpose of formulating animal diets and agricultural chemicals.
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Beginning on January 1, 2024, farm machinery and
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| equipment also includes electrical power generation equipment used primarily for production agriculture.
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This item (2) is exempt from the provisions of
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(3) Until July 1, 2003, distillation machinery and
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| equipment, sold as a unit or kit, assembled or installed by the retailer, certified by the user to be used only for the production of ethyl alcohol that will be used for consumption as motor fuel or as a component of motor fuel for the personal use of the user, and not subject to sale or resale.
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(4) Until July 1, 2003 and beginning again September
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| 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including repair and replacement parts, both new and used, and including that manufactured on special order or purchased for lease, certified by the purchaser to be used primarily for graphic arts production. Equipment includes chemicals or chemicals acting as catalysts but only if the chemicals or chemicals acting as catalysts effect a direct and immediate change upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under paragraph (14).
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(5) A motor vehicle that is used for automobile
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| renting, as defined in the Automobile Renting Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 2-70.
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(6) Personal property sold by a teacher-sponsored
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| student organization affiliated with an elementary or secondary school located in Illinois.
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(7) Until July 1, 2003, proceeds of that portion of
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| the selling price of a passenger car the sale of which is subject to the Replacement Vehicle Tax.
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(8) Personal property sold to an Illinois county fair
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| association for use in conducting, operating, or promoting the county fair.
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(9) Personal property sold to a not-for-profit arts
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| or cultural organization that establishes, by proof required by the Department by rule, that it has received an exemption under Section 501(c)(3) of the Internal Revenue Code and that is organized and operated primarily for the presentation or support of arts or cultural programming, activities, or services. These organizations include, but are not limited to, music and dramatic arts organizations such as symphony orchestras and theatrical groups, arts and cultural service organizations, local arts councils, visual arts organizations, and media arts organizations. On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not make tax-free purchases unless it has an active identification number issued by the Department.
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(10) Personal property sold by a corporation,
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| society, association, foundation, institution, or organization, other than a limited liability company, that is organized and operated as a not-for-profit service enterprise for the benefit of persons 65 years of age or older if the personal property was not purchased by the enterprise for the purpose of resale by the enterprise.
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(11) Personal property sold to a governmental body,
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| to a corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes, or to a not-for-profit corporation, society, association, foundation, institution, or organization that has no compensated officers or employees and that is organized and operated primarily for the recreation of persons 55 years of age or older. A limited liability company may qualify for the exemption under this paragraph only if the limited liability company is organized and operated exclusively for educational purposes. On and after July 1, 1987, however, no entity otherwise eligible for this exemption shall make tax-free purchases unless it has an active identification number issued by the Department.
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(12) (Blank).
(12-5) On and after July 1, 2003 and through June 30,
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| 2004, motor vehicles of the second division with a gross vehicle weight in excess of 8,000 pounds that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code. Beginning on July 1, 2004 and through June 30, 2005, the use in this State of motor vehicles of the second division: (i) with a gross vehicle weight rating in excess of 8,000 pounds; (ii) that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code; and (iii) that are primarily used for commercial purposes. Through June 30, 2005, this exemption applies to repair and replacement parts added after the initial purchase of such a motor vehicle if that motor vehicle is used in a manner that would qualify for the rolling stock exemption otherwise provided for in this Act. For purposes of this paragraph, "used for commercial purposes" means the transportation of persons or property in furtherance of any commercial or industrial enterprise whether for-hire or not.
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(13) Proceeds from sales to owners, lessors, or
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| shippers of tangible personal property that is utilized by interstate carriers for hire for use as rolling stock moving in interstate commerce and equipment operated by a telecommunications provider, licensed as a common carrier by the Federal Communications Commission, which is permanently installed in or affixed to aircraft moving in interstate commerce.
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(14) Machinery and equipment that will be used by the
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| purchaser, or a lessee of the purchaser, primarily in the process of manufacturing or assembling tangible personal property for wholesale or retail sale or lease, whether the sale or lease is made directly by the manufacturer or by some other person, whether the materials used in the process are owned by the manufacturer or some other person, or whether the sale or lease is made apart from or as an incident to the seller's engaging in the service occupation of producing machines, tools, dies, jigs, patterns, gauges, or other similar items of no commercial value on special order for a particular purchaser. The exemption provided by this paragraph (14) does not include machinery and equipment used in (i) the generation of electricity for wholesale or retail sale; (ii) the generation or treatment of natural or artificial gas for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains; or (iii) the treatment of water for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains. The provisions of Public Act 98-583 are declaratory of existing law as to the meaning and scope of this exemption. Beginning on July 1, 2017, the exemption provided by this paragraph (14) includes, but is not limited to, graphic arts machinery and equipment, as defined in paragraph (4) of this Section.
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(15) Proceeds of mandatory service charges separately
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| stated on customers' bills for purchase and consumption of food and beverages, to the extent that the proceeds of the service charge are in fact turned over as tips or as a substitute for tips to the employees who participate directly in preparing, serving, hosting or cleaning up the food or beverage function with respect to which the service charge is imposed.
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(16) Tangible personal property sold to a purchaser
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| if the purchaser is exempt from use tax by operation of federal law. This paragraph is exempt from the provisions of Section 2-70.
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(17) Tangible personal property sold to a common
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| carrier by rail or motor that receives the physical possession of the property in Illinois and that transports the property, or shares with another common carrier in the transportation of the property, out of Illinois on a standard uniform bill of lading showing the seller of the property as the shipper or consignor of the property to a destination outside Illinois, for use outside Illinois.
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(18) Legal tender, currency, medallions, or gold or
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| silver coinage issued by the State of Illinois, the government of the United States of America, or the government of any foreign country, and bullion.
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(19) Until July 1, 2003, oil field exploration,
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| drilling, and production equipment, including (i) rigs and parts of rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and tubular goods, including casing and drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow lines, (v) any individual replacement part for oil field exploration, drilling, and production equipment, and (vi) machinery and equipment purchased for lease; but excluding motor vehicles required to be registered under the Illinois Vehicle Code.
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(20) Photoprocessing machinery and equipment,
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| including repair and replacement parts, both new and used, including that manufactured on special order, certified by the purchaser to be used primarily for photoprocessing, and including photoprocessing machinery and equipment purchased for lease.
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(21) Until July 1, 2028, coal and aggregate
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| exploration, mining, off-highway hauling, processing, maintenance, and reclamation equipment, including replacement parts and equipment, and including equipment purchased for lease, but excluding motor vehicles required to be registered under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456) for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
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(22) Until June 30, 2013, fuel and petroleum products
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| sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight destined for or returning from a location or locations outside the United States without regard to previous or subsequent domestic stopovers.
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Beginning July 1, 2013, fuel and petroleum products
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| sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
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(23) A transaction in which the purchase order is
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| received by a florist who is located outside Illinois, but who has a florist located in Illinois deliver the property to the purchaser or the purchaser's donee in Illinois.
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(24) Fuel consumed or used in the operation of ships,
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| barges, or vessels that are used primarily in or for the transportation of property or the conveyance of persons for hire on rivers bordering on this State if the fuel is delivered by the seller to the purchaser's barge, ship, or vessel while it is afloat upon that bordering river.
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(25) Except as provided in item (25-5) of this
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| Section, a motor vehicle sold in this State to a nonresident even though the motor vehicle is delivered to the nonresident in this State, if the motor vehicle is not to be titled in this State, and if a drive-away permit is issued to the motor vehicle as provided in Section 3-603 of the Illinois Vehicle Code or if the nonresident purchaser has vehicle registration plates to transfer to the motor vehicle upon returning to his or her home state. The issuance of the drive-away permit or having the out-of-state registration plates to be transferred is prima facie evidence that the motor vehicle will not be titled in this State.
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(25-5) The exemption under item (25) does not apply
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| if the state in which the motor vehicle will be titled does not allow a reciprocal exemption for a motor vehicle sold and delivered in that state to an Illinois resident but titled in Illinois. The tax collected under this Act on the sale of a motor vehicle in this State to a resident of another state that does not allow a reciprocal exemption shall be imposed at a rate equal to the state's rate of tax on taxable property in the state in which the purchaser is a resident, except that the tax shall not exceed the tax that would otherwise be imposed under this Act. At the time of the sale, the purchaser shall execute a statement, signed under penalty of perjury, of his or her intent to title the vehicle in the state in which the purchaser is a resident within 30 days after the sale and of the fact of the payment to the State of Illinois of tax in an amount equivalent to the state's rate of tax on taxable property in his or her state of residence and shall submit the statement to the appropriate tax collection agency in his or her state of residence. In addition, the retailer must retain a signed copy of the statement in his or her records. Nothing in this item shall be construed to require the removal of the vehicle from this state following the filing of an intent to title the vehicle in the purchaser's state of residence if the purchaser titles the vehicle in his or her state of residence within 30 days after the date of sale. The tax collected under this Act in accordance with this item (25-5) shall be proportionately distributed as if the tax were collected at the 6.25% general rate imposed under this Act.
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(25-7) Beginning on July 1, 2007, no tax is imposed
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| under this Act on the sale of an aircraft, as defined in Section 3 of the Illinois Aeronautics Act, if all of the following conditions are met:
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(1) the aircraft leaves this State within 15 days
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| after the later of either the issuance of the final billing for the sale of the aircraft, or the authorized approval for return to service, completion of the maintenance record entry, and completion of the test flight and ground test for inspection, as required by 14 CFR 91.407;
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(2) the aircraft is not based or registered in
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| this State after the sale of the aircraft; and
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(3) the seller retains in his or her books and
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| records and provides to the Department a signed and dated certification from the purchaser, on a form prescribed by the Department, certifying that the requirements of this item (25-7) are met. The certificate must also include the name and address of the purchaser, the address of the location where the aircraft is to be titled or registered, the address of the primary physical location of the aircraft, and other information that the Department may reasonably require.
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For purposes of this item (25-7):
"Based in this State" means hangared, stored, or
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| otherwise used, excluding post-sale customizations as defined in this Section, for 10 or more days in each 12-month period immediately following the date of the sale of the aircraft.
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"Registered in this State" means an aircraft
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| registered with the Department of Transportation, Aeronautics Division, or titled or registered with the Federal Aviation Administration to an address located in this State.
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This paragraph (25-7) is exempt from the provisions
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(26) Semen used for artificial insemination of
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| livestock for direct agricultural production.
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(27) Horses, or interests in horses, registered with
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| and meeting the requirements of any of the Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter Horse Association, United States Trotting Association, or Jockey Club, as appropriate, used for purposes of breeding or racing for prizes. This item (27) is exempt from the provisions of Section 2-70, and the exemption provided for under this item (27) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88) for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
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(28) Computers and communications equipment utilized
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| for any hospital purpose and equipment used in the diagnosis, analysis, or treatment of hospital patients sold to a lessor who leases the equipment, under a lease of one year or longer executed or in effect at the time of the purchase, to a hospital that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.
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(29) Personal property sold to a lessor who leases
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| the property, under a lease of one year or longer executed or in effect at the time of the purchase, to a governmental body that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.
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(30) Beginning with taxable years ending on or after
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| December 31, 1995 and ending with taxable years ending on or before December 31, 2004, personal property that is donated for disaster relief to be used in a State or federally declared disaster area in Illinois or bordering Illinois by a manufacturer or retailer that is registered in this State to a corporation, society, association, foundation, or institution that has been issued a sales tax exemption identification number by the Department that assists victims of the disaster who reside within the declared disaster area.
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(31) Beginning with taxable years ending on or after
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| December 31, 1995 and ending with taxable years ending on or before December 31, 2004, personal property that is used in the performance of infrastructure repairs in this State, including but not limited to municipal roads and streets, access roads, bridges, sidewalks, waste disposal systems, water and sewer line extensions, water distribution and purification facilities, storm water drainage and retention facilities, and sewage treatment facilities, resulting from a State or federally declared disaster in Illinois or bordering Illinois when such repairs are initiated on facilities located in the declared disaster area within 6 months after the disaster.
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(32) Beginning July 1, 1999, game or game birds sold
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| at a "game breeding and hunting preserve area" as that term is used in the Wildlife Code. This paragraph is exempt from the provisions of Section 2-70.
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(33) A motor vehicle, as that term is defined in
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| Section 1-146 of the Illinois Vehicle Code, that is donated to a corporation, limited liability company, society, association, foundation, or institution that is determined by the Department to be organized and operated exclusively for educational purposes. For purposes of this exemption, "a corporation, limited liability company, society, association, foundation, or institution organized and operated exclusively for educational purposes" means all tax-supported public schools, private schools that offer systematic instruction in useful branches of learning by methods common to public schools and that compare favorably in their scope and intensity with the course of study presented in tax-supported schools, and vocational or technical schools or institutes organized and operated exclusively to provide a course of study of not less than 6 weeks duration and designed to prepare individuals to follow a trade or to pursue a manual, technical, mechanical, industrial, business, or commercial occupation.
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(34) Beginning January 1, 2000, personal property,
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| including food, purchased through fundraising events for the benefit of a public or private elementary or secondary school, a group of those schools, or one or more school districts if the events are sponsored by an entity recognized by the school district that consists primarily of volunteers and includes parents and teachers of the school children. This paragraph does not apply to fundraising events (i) for the benefit of private home instruction or (ii) for which the fundraising entity purchases the personal property sold at the events from another individual or entity that sold the property for the purpose of resale by the fundraising entity and that profits from the sale to the fundraising entity. This paragraph is exempt from the provisions of Section 2-70.
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(35) Beginning January 1, 2000 and through December
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| 31, 2001, new or used automatic vending machines that prepare and serve hot food and beverages, including coffee, soup, and other items, and replacement parts for these machines. Beginning January 1, 2002 and through June 30, 2003, machines and parts for machines used in commercial, coin-operated amusement and vending business if a use or occupation tax is paid on the gross receipts derived from the use of the commercial, coin-operated amusement and vending machines. This paragraph is exempt from the provisions of Section 2-70.
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(35-5) Beginning August 23, 2001 and through June 30,
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| 2016, food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances, and insulin, urine testing materials, syringes, and needles used by diabetics, for human use, when purchased for use by a person receiving medical assistance under Article V of the Illinois Public Aid Code who resides in a licensed long-term care facility, as defined in the Nursing Home Care Act, or a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
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(36) Beginning August 2, 2001, computers and
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| communications equipment utilized for any hospital purpose and equipment used in the diagnosis, analysis, or treatment of hospital patients sold to a lessor who leases the equipment, under a lease of one year or longer executed or in effect at the time of the purchase, to a hospital that has been issued an active tax exemption identification number by the Department under Section 1g of this Act. This paragraph is exempt from the provisions of Section 2-70.
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(37) Beginning August 2, 2001, personal property sold
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| to a lessor who leases the property, under a lease of one year or longer executed or in effect at the time of the purchase, to a governmental body that has been issued an active tax exemption identification number by the Department under Section 1g of this Act. This paragraph is exempt from the provisions of Section 2-70.
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(38) Beginning on January 1, 2002 and through June
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| 30, 2016, tangible personal property purchased from an Illinois retailer by a taxpayer engaged in centralized purchasing activities in Illinois who will, upon receipt of the property in Illinois, temporarily store the property in Illinois (i) for the purpose of subsequently transporting it outside this State for use or consumption thereafter solely outside this State or (ii) for the purpose of being processed, fabricated, or manufactured into, attached to, or incorporated into other tangible personal property to be transported outside this State and thereafter used or consumed solely outside this State. The Director of Revenue shall, pursuant to rules adopted in accordance with the Illinois Administrative Procedure Act, issue a permit to any taxpayer in good standing with the Department who is eligible for the exemption under this paragraph (38). The permit issued under this paragraph (38) shall authorize the holder, to the extent and in the manner specified in the rules adopted under this Act, to purchase tangible personal property from a retailer exempt from the taxes imposed by this Act. Taxpayers shall maintain all necessary books and records to substantiate the use and consumption of all such tangible personal property outside of the State of Illinois.
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(39) Beginning January 1, 2008, tangible personal
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| property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 2-70.
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(40) Beginning January 1, 2010 and continuing through
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| December 31, 2024, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft, but excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. This exemption applies only to the sale of qualifying tangible personal property to persons who modify, refurbish, complete, replace, or maintain an aircraft and who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (40) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (40) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
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(41) Tangible personal property sold to a
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| public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall. This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code. This paragraph is exempt from the provisions of Section 2-70.
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(42) Beginning January 1, 2017 and through December
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| 31, 2026, menstrual pads, tampons, and menstrual cups.
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(43) Merchandise that is subject to the Rental
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| Purchase Agreement Occupation and Use Tax. The purchaser must certify that the item is purchased to be rented subject to a rental purchase agreement, as defined in the Rental Purchase Agreement Act, and provide proof of registration under the Rental Purchase Agreement Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 2-70.
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(44) Qualified tangible personal property used in the
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| construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant. Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
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The Department of Commerce and Economic Opportunity
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| shall grant a certificate of exemption under this item (44) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois.
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For the purposes of this item (44):
"Data center" means a building or a series of
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| buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
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"Qualified tangible personal property" means:
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| electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center. The term "qualified tangible personal property" also includes building materials physically incorporated into the qualifying data center. To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
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This item (44) is exempt from the provisions of
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(45) Beginning January 1, 2020 and through December
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| 31, 2020, sales of tangible personal property made by a marketplace seller over a marketplace for which tax is due under this Act but for which use tax has been collected and remitted to the Department by a marketplace facilitator under Section 2d of the Use Tax Act are exempt from tax under this Act. A marketplace seller claiming this exemption shall maintain books and records demonstrating that the use tax on such sales has been collected and remitted by a marketplace facilitator. Marketplace sellers that have properly remitted tax under this Act on such sales may file a claim for credit as provided in Section 6 of this Act. No claim is allowed, however, for such taxes for which a credit or refund has been issued to the marketplace facilitator under the Use Tax Act, or for which the marketplace facilitator has filed a claim for credit or refund under the Use Tax Act.
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(46) Beginning July 1, 2022, breast pumps, breast
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| pump collection and storage supplies, and breast pump kits. This item (46) is exempt from the provisions of Section 2-70. As used in this item (46):
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"Breast pump" means an electrically controlled or
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| manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
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"Breast pump collection and storage supplies" means
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| items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
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"Breast pump collection and storage supplies"
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| includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
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"Breast pump collection and storage supplies" does
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| not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
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"Breast pump kit" means a kit that: (1) contains no
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| more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
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(47) Tangible personal property sold by or on behalf
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| of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act. This item (47) is exempt from the provisions of Section 2-70.
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(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 15, Section 15-20, eff. 6-7-23.)
(Text of Section from P.A. 103-154)
Sec. 2-5. Exemptions. Gross receipts from proceeds from the sale of
the following tangible personal property are exempt from the tax imposed
by this Act:
(1) Farm chemicals.
(2) Farm machinery and equipment, both new and used,
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| including that manufactured on special order, certified by the purchaser to be used primarily for production agriculture or State or federal agricultural programs, including individual replacement parts for the machinery and equipment, including machinery and equipment purchased for lease, and including implements of husbandry defined in Section 1-130 of the Illinois Vehicle Code, farm machinery and agricultural chemical and fertilizer spreaders, and nurse wagons required to be registered under Section 3-809 of the Illinois Vehicle Code, but excluding other motor vehicles required to be registered under the Illinois Vehicle Code. Horticultural polyhouses or hoop houses used for propagating, growing, or overwintering plants shall be considered farm machinery and equipment under this item (2). Agricultural chemical tender tanks and dry boxes shall include units sold separately from a motor vehicle required to be licensed and units sold mounted on a motor vehicle required to be licensed, if the selling price of the tender is separately stated.
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|
Farm machinery and equipment shall include precision
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| farming equipment that is installed or purchased to be installed on farm machinery and equipment including, but not limited to, tractors, harvesters, sprayers, planters, seeders, or spreaders. Precision farming equipment includes, but is not limited to, soil testing sensors, computers, monitors, software, global positioning and mapping systems, and other such equipment.
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|
Farm machinery and equipment also includes computers,
|
| sensors, software, and related equipment used primarily in the computer-assisted operation of production agriculture facilities, equipment, and activities such as, but not limited to, the collection, monitoring, and correlation of animal and crop data for the purpose of formulating animal diets and agricultural chemicals. This item (2) is exempt from the provisions of Section 2-70.
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|
(3) Until July 1, 2003, distillation machinery and
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| equipment, sold as a unit or kit, assembled or installed by the retailer, certified by the user to be used only for the production of ethyl alcohol that will be used for consumption as motor fuel or as a component of motor fuel for the personal use of the user, and not subject to sale or resale.
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|
(4) Until July 1, 2003 and beginning again September
|
| 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including repair and replacement parts, both new and used, and including that manufactured on special order or purchased for lease, certified by the purchaser to be used primarily for graphic arts production. Equipment includes chemicals or chemicals acting as catalysts but only if the chemicals or chemicals acting as catalysts effect a direct and immediate change upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under paragraph (14).
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|
(5) A motor vehicle that is used for automobile
|
| renting, as defined in the Automobile Renting Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 2-70.
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|
(6) Personal property sold by a teacher-sponsored
|
| student organization affiliated with an elementary or secondary school located in Illinois.
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|
(7) Until July 1, 2003, proceeds of that portion of
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| the selling price of a passenger car the sale of which is subject to the Replacement Vehicle Tax.
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|
(8) Personal property sold to an Illinois county fair
|
| association for use in conducting, operating, or promoting the county fair.
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|
(9) Personal property sold to a not-for-profit arts
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| or cultural organization that establishes, by proof required by the Department by rule, that it has received an exemption under Section 501(c)(3) of the Internal Revenue Code and that is organized and operated primarily for the presentation or support of arts or cultural programming, activities, or services. These organizations include, but are not limited to, music and dramatic arts organizations such as symphony orchestras and theatrical groups, arts and cultural service organizations, local arts councils, visual arts organizations, and media arts organizations. On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not make tax-free purchases unless it has an active identification number issued by the Department.
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|
(10) Personal property sold by a corporation,
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| society, association, foundation, institution, or organization, other than a limited liability company, that is organized and operated as a not-for-profit service enterprise for the benefit of persons 65 years of age or older if the personal property was not purchased by the enterprise for the purpose of resale by the enterprise.
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|
(11) Personal property sold to a governmental body,
|
| to a corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes, or to a not-for-profit corporation, society, association, foundation, institution, or organization that has no compensated officers or employees and that is organized and operated primarily for the recreation of persons 55 years of age or older. A limited liability company may qualify for the exemption under this paragraph only if the limited liability company is organized and operated exclusively for educational purposes. On and after July 1, 1987, however, no entity otherwise eligible for this exemption shall make tax-free purchases unless it has an active identification number issued by the Department.
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|
(12) (Blank).
(12-5) On and after July 1, 2003 and through June 30,
|
| 2004, motor vehicles of the second division with a gross vehicle weight in excess of 8,000 pounds that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code. Beginning on July 1, 2004 and through June 30, 2005, the use in this State of motor vehicles of the second division: (i) with a gross vehicle weight rating in excess of 8,000 pounds; (ii) that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code; and (iii) that are primarily used for commercial purposes. Through June 30, 2005, this exemption applies to repair and replacement parts added after the initial purchase of such a motor vehicle if that motor vehicle is used in a manner that would qualify for the rolling stock exemption otherwise provided for in this Act. For purposes of this paragraph, "used for commercial purposes" means the transportation of persons or property in furtherance of any commercial or industrial enterprise whether for-hire or not.
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|
(13) Proceeds from sales to owners, lessors, or
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| shippers of tangible personal property that is utilized by interstate carriers for hire for use as rolling stock moving in interstate commerce and equipment operated by a telecommunications provider, licensed as a common carrier by the Federal Communications Commission, which is permanently installed in or affixed to aircraft moving in interstate commerce.
|
|
(14) Machinery and equipment that will be used by the
|
| purchaser, or a lessee of the purchaser, primarily in the process of manufacturing or assembling tangible personal property for wholesale or retail sale or lease, whether the sale or lease is made directly by the manufacturer or by some other person, whether the materials used in the process are owned by the manufacturer or some other person, or whether the sale or lease is made apart from or as an incident to the seller's engaging in the service occupation of producing machines, tools, dies, jigs, patterns, gauges, or other similar items of no commercial value on special order for a particular purchaser. The exemption provided by this paragraph (14) does not include machinery and equipment used in (i) the generation of electricity for wholesale or retail sale; (ii) the generation or treatment of natural or artificial gas for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains; or (iii) the treatment of water for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains. The provisions of Public Act 98-583 are declaratory of existing law as to the meaning and scope of this exemption. Beginning on July 1, 2017, the exemption provided by this paragraph (14) includes, but is not limited to, graphic arts machinery and equipment, as defined in paragraph (4) of this Section.
|
|
(15) Proceeds of mandatory service charges separately
|
| stated on customers' bills for purchase and consumption of food and beverages, to the extent that the proceeds of the service charge are in fact turned over as tips or as a substitute for tips to the employees who participate directly in preparing, serving, hosting or cleaning up the food or beverage function with respect to which the service charge is imposed.
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|
(16) Tangible personal property sold to a purchaser
|
| if the purchaser is exempt from use tax by operation of federal law. This paragraph is exempt from the provisions of Section 2-70.
|
|
(17) Tangible personal property sold to a common
|
| carrier by rail or motor that receives the physical possession of the property in Illinois and that transports the property, or shares with another common carrier in the transportation of the property, out of Illinois on a standard uniform bill of lading showing the seller of the property as the shipper or consignor of the property to a destination outside Illinois, for use outside Illinois.
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|
(18) Legal tender, currency, medallions, or gold or
|
| silver coinage issued by the State of Illinois, the government of the United States of America, or the government of any foreign country, and bullion.
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|
(19) Until July 1, 2003, oil field exploration,
|
| drilling, and production equipment, including (i) rigs and parts of rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and tubular goods, including casing and drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow lines, (v) any individual replacement part for oil field exploration, drilling, and production equipment, and (vi) machinery and equipment purchased for lease; but excluding motor vehicles required to be registered under the Illinois Vehicle Code.
|
|
(20) Photoprocessing machinery and equipment,
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| including repair and replacement parts, both new and used, including that manufactured on special order, certified by the purchaser to be used primarily for photoprocessing, and including photoprocessing machinery and equipment purchased for lease.
|
|
(21) Until July 1, 2028, coal and aggregate
|
| exploration, mining, off-highway hauling, processing, maintenance, and reclamation equipment, including replacement parts and equipment, and including equipment purchased for lease, but excluding motor vehicles required to be registered under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456) for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
|
|
(22) Until June 30, 2013, fuel and petroleum products
|
| sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight destined for or returning from a location or locations outside the United States without regard to previous or subsequent domestic stopovers.
|
|
Beginning July 1, 2013, fuel and petroleum products
|
| sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
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|
(23) A transaction in which the purchase order is
|
| received by a florist who is located outside Illinois, but who has a florist located in Illinois deliver the property to the purchaser or the purchaser's donee in Illinois.
|
|
(24) Fuel consumed or used in the operation of ships,
|
| barges, or vessels that are used primarily in or for the transportation of property or the conveyance of persons for hire on rivers bordering on this State if the fuel is delivered by the seller to the purchaser's barge, ship, or vessel while it is afloat upon that bordering river.
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|
(25) Except as provided in item (25-5) of this
|
| Section, a motor vehicle sold in this State to a nonresident even though the motor vehicle is delivered to the nonresident in this State, if the motor vehicle is not to be titled in this State, and if a drive-away permit is issued to the motor vehicle as provided in Section 3-603 of the Illinois Vehicle Code or if the nonresident purchaser has vehicle registration plates to transfer to the motor vehicle upon returning to his or her home state. The issuance of the drive-away permit or having the out-of-state registration plates to be transferred is prima facie evidence that the motor vehicle will not be titled in this State.
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|
(25-5) The exemption under item (25) does not apply
|
| if the state in which the motor vehicle will be titled does not allow a reciprocal exemption for a motor vehicle sold and delivered in that state to an Illinois resident but titled in Illinois. The tax collected under this Act on the sale of a motor vehicle in this State to a resident of another state that does not allow a reciprocal exemption shall be imposed at a rate equal to the state's rate of tax on taxable property in the state in which the purchaser is a resident, except that the tax shall not exceed the tax that would otherwise be imposed under this Act. At the time of the sale, the purchaser shall execute a statement, signed under penalty of perjury, of his or her intent to title the vehicle in the state in which the purchaser is a resident within 30 days after the sale and of the fact of the payment to the State of Illinois of tax in an amount equivalent to the state's rate of tax on taxable property in his or her state of residence and shall submit the statement to the appropriate tax collection agency in his or her state of residence. In addition, the retailer must retain a signed copy of the statement in his or her records. Nothing in this item shall be construed to require the removal of the vehicle from this state following the filing of an intent to title the vehicle in the purchaser's state of residence if the purchaser titles the vehicle in his or her state of residence within 30 days after the date of sale. The tax collected under this Act in accordance with this item (25-5) shall be proportionately distributed as if the tax were collected at the 6.25% general rate imposed under this Act.
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|
(25-7) Beginning on July 1, 2007, no tax is imposed
|
| under this Act on the sale of an aircraft, as defined in Section 3 of the Illinois Aeronautics Act, if all of the following conditions are met:
|
|
(1) the aircraft leaves this State within 15 days
|
| after the later of either the issuance of the final billing for the sale of the aircraft, or the authorized approval for return to service, completion of the maintenance record entry, and completion of the test flight and ground test for inspection, as required by 14 CFR 91.407;
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|
(2) the aircraft is not based or registered in
|
| this State after the sale of the aircraft; and
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|
(3) the seller retains in his or her books and
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| records and provides to the Department a signed and dated certification from the purchaser, on a form prescribed by the Department, certifying that the requirements of this item (25-7) are met. The certificate must also include the name and address of the purchaser, the address of the location where the aircraft is to be titled or registered, the address of the primary physical location of the aircraft, and other information that the Department may reasonably require.
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|
For purposes of this item (25-7):
"Based in this State" means hangared, stored, or
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| otherwise used, excluding post-sale customizations as defined in this Section, for 10 or more days in each 12-month period immediately following the date of the sale of the aircraft.
|
|
"Registered in this State" means an aircraft
|
| registered with the Department of Transportation, Aeronautics Division, or titled or registered with the Federal Aviation Administration to an address located in this State.
|
|
This paragraph (25-7) is exempt from the provisions
|
|
(26) Semen used for artificial insemination of
|
| livestock for direct agricultural production.
|
|
(27) Horses, or interests in horses, registered with
|
| and meeting the requirements of any of the Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter Horse Association, United States Trotting Association, or Jockey Club, as appropriate, used for purposes of breeding or racing for prizes. This item (27) is exempt from the provisions of Section 2-70, and the exemption provided for under this item (27) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88) for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
|
|
(28) Computers and communications equipment utilized
|
| for any hospital purpose and equipment used in the diagnosis, analysis, or treatment of hospital patients sold to a lessor who leases the equipment, under a lease of one year or longer executed or in effect at the time of the purchase, to a hospital that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.
|
|
(29) Personal property sold to a lessor who leases
|
| the property, under a lease of one year or longer executed or in effect at the time of the purchase, to a governmental body that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.
|
|
(30) Beginning with taxable years ending on or after
|
| December 31, 1995 and ending with taxable years ending on or before December 31, 2004, personal property that is donated for disaster relief to be used in a State or federally declared disaster area in Illinois or bordering Illinois by a manufacturer or retailer that is registered in this State to a corporation, society, association, foundation, or institution that has been issued a sales tax exemption identification number by the Department that assists victims of the disaster who reside within the declared disaster area.
|
|
(31) Beginning with taxable years ending on or after
|
| December 31, 1995 and ending with taxable years ending on or before December 31, 2004, personal property that is used in the performance of infrastructure repairs in this State, including but not limited to municipal roads and streets, access roads, bridges, sidewalks, waste disposal systems, water and sewer line extensions, water distribution and purification facilities, storm water drainage and retention facilities, and sewage treatment facilities, resulting from a State or federally declared disaster in Illinois or bordering Illinois when such repairs are initiated on facilities located in the declared disaster area within 6 months after the disaster.
|
|
(32) Beginning July 1, 1999, game or game birds sold
|
| at a "game breeding and hunting preserve area" as that term is used in the Wildlife Code. This paragraph is exempt from the provisions of Section 2-70.
|
|
(33) A motor vehicle, as that term is defined in
|
| Section 1-146 of the Illinois Vehicle Code, that is donated to a corporation, limited liability company, society, association, foundation, or institution that is determined by the Department to be organized and operated exclusively for educational purposes. For purposes of this exemption, "a corporation, limited liability company, society, association, foundation, or institution organized and operated exclusively for educational purposes" means all tax-supported public schools, private schools that offer systematic instruction in useful branches of learning by methods common to public schools and that compare favorably in their scope and intensity with the course of study presented in tax-supported schools, and vocational or technical schools or institutes organized and operated exclusively to provide a course of study of not less than 6 weeks duration and designed to prepare individuals to follow a trade or to pursue a manual, technical, mechanical, industrial, business, or commercial occupation.
|
|
(34) Beginning January 1, 2000, personal property,
|
| including food, purchased through fundraising events for the benefit of a public or private elementary or secondary school, a group of those schools, or one or more school districts if the events are sponsored by an entity recognized by the school district that consists primarily of volunteers and includes parents and teachers of the school children. This paragraph does not apply to fundraising events (i) for the benefit of private home instruction or (ii) for which the fundraising entity purchases the personal property sold at the events from another individual or entity that sold the property for the purpose of resale by the fundraising entity and that profits from the sale to the fundraising entity. This paragraph is exempt from the provisions of Section 2-70.
|
|
(35) Beginning January 1, 2000 and through December
|
| 31, 2001, new or used automatic vending machines that prepare and serve hot food and beverages, including coffee, soup, and other items, and replacement parts for these machines. Beginning January 1, 2002 and through June 30, 2003, machines and parts for machines used in commercial, coin-operated amusement and vending business if a use or occupation tax is paid on the gross receipts derived from the use of the commercial, coin-operated amusement and vending machines. This paragraph is exempt from the provisions of Section 2-70.
|
|
(35-5) Beginning August 23, 2001 and through June 30,
|
| 2016, food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances, and insulin, urine testing materials, syringes, and needles used by diabetics, for human use, when purchased for use by a person receiving medical assistance under Article V of the Illinois Public Aid Code who resides in a licensed long-term care facility, as defined in the Nursing Home Care Act, or a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
|
|
(36) Beginning August 2, 2001, computers and
|
| communications equipment utilized for any hospital purpose and equipment used in the diagnosis, analysis, or treatment of hospital patients sold to a lessor who leases the equipment, under a lease of one year or longer executed or in effect at the time of the purchase, to a hospital that has been issued an active tax exemption identification number by the Department under Section 1g of this Act. This paragraph is exempt from the provisions of Section 2-70.
|
|
(37) Beginning August 2, 2001, personal property sold
|
| to a lessor who leases the property, under a lease of one year or longer executed or in effect at the time of the purchase, to a governmental body that has been issued an active tax exemption identification number by the Department under Section 1g of this Act. This paragraph is exempt from the provisions of Section 2-70.
|
|
(38) Beginning on January 1, 2002 and through June
|
| 30, 2016, tangible personal property purchased from an Illinois retailer by a taxpayer engaged in centralized purchasing activities in Illinois who will, upon receipt of the property in Illinois, temporarily store the property in Illinois (i) for the purpose of subsequently transporting it outside this State for use or consumption thereafter solely outside this State or (ii) for the purpose of being processed, fabricated, or manufactured into, attached to, or incorporated into other tangible personal property to be transported outside this State and thereafter used or consumed solely outside this State. The Director of Revenue shall, pursuant to rules adopted in accordance with the Illinois Administrative Procedure Act, issue a permit to any taxpayer in good standing with the Department who is eligible for the exemption under this paragraph (38). The permit issued under this paragraph (38) shall authorize the holder, to the extent and in the manner specified in the rules adopted under this Act, to purchase tangible personal property from a retailer exempt from the taxes imposed by this Act. Taxpayers shall maintain all necessary books and records to substantiate the use and consumption of all such tangible personal property outside of the State of Illinois.
|
|
(39) Beginning January 1, 2008, tangible personal
|
| property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 2-70.
|
|
(40) Beginning January 1, 2010 and continuing through
|
| December 31, 2024, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft, but excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. This exemption applies only to the sale of qualifying tangible personal property to persons who modify, refurbish, complete, replace, or maintain an aircraft and who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (40) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (40) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
|
|
(41) Tangible personal property sold to a
|
| public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall. This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code. This paragraph is exempt from the provisions of Section 2-70.
|
|
(42) Beginning January 1, 2017 and through December
|
| 31, 2026, menstrual pads, tampons, and menstrual cups.
|
|
(43) Merchandise that is subject to the Rental
|
| Purchase Agreement Occupation and Use Tax. The purchaser must certify that the item is purchased to be rented subject to a rental purchase agreement, as defined in the Rental Purchase Agreement Act, and provide proof of registration under the Rental Purchase Agreement Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 2-70.
|
|
(44) Qualified tangible personal property used in the
|
| construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant. Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
|
|
The Department of Commerce and Economic Opportunity
|
| shall grant a certificate of exemption under this item (44) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois.
|
|
For the purposes of this item (44):
"Data center" means a building or a series of
|
| buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
|
|
"Qualified tangible personal property" means:
|
| electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center. The term "qualified tangible personal property" also includes building materials physically incorporated into the qualifying data center. To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
|
|
This item (44) is exempt from the provisions of
|
|
(45) Beginning January 1, 2020 and through December
|
| 31, 2020, sales of tangible personal property made by a marketplace seller over a marketplace for which tax is due under this Act but for which use tax has been collected and remitted to the Department by a marketplace facilitator under Section 2d of the Use Tax Act are exempt from tax under this Act. A marketplace seller claiming this exemption shall maintain books and records demonstrating that the use tax on such sales has been collected and remitted by a marketplace facilitator. Marketplace sellers that have properly remitted tax under this Act on such sales may file a claim for credit as provided in Section 6 of this Act. No claim is allowed, however, for such taxes for which a credit or refund has been issued to the marketplace facilitator under the Use Tax Act, or for which the marketplace facilitator has filed a claim for credit or refund under the Use Tax Act.
|
|
(46) Beginning July 1, 2022, breast pumps, breast
|
| pump collection and storage supplies, and breast pump kits. This item (46) is exempt from the provisions of Section 2-70. As used in this item (46):
|
|
"Breast pump" means an electrically controlled or
|
| manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
|
|
"Breast pump collection and storage supplies" means
|
| items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
|
|
"Breast pump collection and storage supplies"
|
| includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
|
|
"Breast pump collection and storage supplies" does
|
| not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
|
|
"Breast pump kit" means a kit that: (1) contains no
|
| more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
|
|
(47) Tangible personal property sold by or on behalf
|
| of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act. This item (47) is exempt from the provisions of Section 2-70.
|
|
(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1026, eff. 5-27-22; 103-154, eff. 6-30-23.)
(Text of Section from P.A. 103-384)
Sec. 2-5. Exemptions. Gross receipts from proceeds from the sale of
the following tangible personal property are exempt from the tax imposed
by this Act:
(1) Farm chemicals.
(2) Farm machinery and equipment, both new and used,
|
| including that manufactured on special order, certified by the purchaser to be used primarily for production agriculture or State or federal agricultural programs, including individual replacement parts for the machinery and equipment, including machinery and equipment purchased for lease, and including implements of husbandry defined in Section 1-130 of the Illinois Vehicle Code, farm machinery and agricultural chemical and fertilizer spreaders, and nurse wagons required to be registered under Section 3-809 of the Illinois Vehicle Code, but excluding other motor vehicles required to be registered under the Illinois Vehicle Code. Horticultural polyhouses or hoop houses used for propagating, growing, or overwintering plants shall be considered farm machinery and equipment under this item (2). Agricultural chemical tender tanks and dry boxes shall include units sold separately from a motor vehicle required to be licensed and units sold mounted on a motor vehicle required to be licensed, if the selling price of the tender is separately stated.
|
|
Farm machinery and equipment shall include precision
|
| farming equipment that is installed or purchased to be installed on farm machinery and equipment including, but not limited to, tractors, harvesters, sprayers, planters, seeders, or spreaders. Precision farming equipment includes, but is not limited to, soil testing sensors, computers, monitors, software, global positioning and mapping systems, and other such equipment.
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|
Farm machinery and equipment also includes computers,
|
| sensors, software, and related equipment used primarily in the computer-assisted operation of production agriculture facilities, equipment, and activities such as, but not limited to, the collection, monitoring, and correlation of animal and crop data for the purpose of formulating animal diets and agricultural chemicals. This item (2) is exempt from the provisions of Section 2-70.
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|
(3) Until July 1, 2003, distillation machinery and
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| equipment, sold as a unit or kit, assembled or installed by the retailer, certified by the user to be used only for the production of ethyl alcohol that will be used for consumption as motor fuel or as a component of motor fuel for the personal use of the user, and not subject to sale or resale.
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|
(4) Until July 1, 2003 and beginning again September
|
| 1, 2004 through August 30, 2014, graphic arts machinery and equipment, including repair and replacement parts, both new and used, and including that manufactured on special order or purchased for lease, certified by the purchaser to be used primarily for graphic arts production. Equipment includes chemicals or chemicals acting as catalysts but only if the chemicals or chemicals acting as catalysts effect a direct and immediate change upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under paragraph (14).
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|
(5) A motor vehicle that is used for automobile
|
| renting, as defined in the Automobile Renting Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 2-70.
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|
(6) Personal property sold by a teacher-sponsored
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| student organization affiliated with an elementary or secondary school located in Illinois.
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|
(7) Until July 1, 2003, proceeds of that portion of
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| the selling price of a passenger car the sale of which is subject to the Replacement Vehicle Tax.
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|
(8) Personal property sold to an Illinois county fair
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| association for use in conducting, operating, or promoting the county fair.
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|
(9) Personal property sold to a not-for-profit arts
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| or cultural organization that establishes, by proof required by the Department by rule, that it has received an exemption under Section 501(c)(3) of the Internal Revenue Code and that is organized and operated primarily for the presentation or support of arts or cultural programming, activities, or services. These organizations include, but are not limited to, music and dramatic arts organizations such as symphony orchestras and theatrical groups, arts and cultural service organizations, local arts councils, visual arts organizations, and media arts organizations. On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not make tax-free purchases unless it has an active identification number issued by the Department.
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|
(10) Personal property sold by a corporation,
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| society, association, foundation, institution, or organization, other than a limited liability company, that is organized and operated as a not-for-profit service enterprise for the benefit of persons 65 years of age or older if the personal property was not purchased by the enterprise for the purpose of resale by the enterprise.
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|
(11) Except as otherwise provided in this Section,
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| personal property sold to a governmental body, to a corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes, or to a not-for-profit corporation, society, association, foundation, institution, or organization that has no compensated officers or employees and that is organized and operated primarily for the recreation of persons 55 years of age or older. A limited liability company may qualify for the exemption under this paragraph only if the limited liability company is organized and operated exclusively for educational purposes. On and after July 1, 1987, however, no entity otherwise eligible for this exemption shall make tax-free purchases unless it has an active identification number issued by the Department.
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|
(12) (Blank).
(12-5) On and after July 1, 2003 and through June 30,
|
| 2004, motor vehicles of the second division with a gross vehicle weight in excess of 8,000 pounds that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code. Beginning on July 1, 2004 and through June 30, 2005, the use in this State of motor vehicles of the second division: (i) with a gross vehicle weight rating in excess of 8,000 pounds; (ii) that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code; and (iii) that are primarily used for commercial purposes. Through June 30, 2005, this exemption applies to repair and replacement parts added after the initial purchase of such a motor vehicle if that motor vehicle is used in a manner that would qualify for the rolling stock exemption otherwise provided for in this Act. For purposes of this paragraph, "used for commercial purposes" means the transportation of persons or property in furtherance of any commercial or industrial enterprise whether for-hire or not.
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|
(13) Proceeds from sales to owners, lessors, or
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| shippers of tangible personal property that is utilized by interstate carriers for hire for use as rolling stock moving in interstate commerce and equipment operated by a telecommunications provider, licensed as a common carrier by the Federal Communications Commission, which is permanently installed in or affixed to aircraft moving in interstate commerce.
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|
(14) Machinery and equipment that will be used by the
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| purchaser, or a lessee of the purchaser, primarily in the process of manufacturing or assembling tangible personal property for wholesale or retail sale or lease, whether the sale or lease is made directly by the manufacturer or by some other person, whether the materials used in the process are owned by the manufacturer or some other person, or whether the sale or lease is made apart from or as an incident to the seller's engaging in the service occupation of producing machines, tools, dies, jigs, patterns, gauges, or other similar items of no commercial value on special order for a particular purchaser. The exemption provided by this paragraph (14) does not include machinery and equipment used in (i) the generation of electricity for wholesale or retail sale; (ii) the generation or treatment of natural or artificial gas for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains; or (iii) the treatment of water for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains. The provisions of Public Act 98-583 are declaratory of existing law as to the meaning and scope of this exemption. Beginning on July 1, 2017, the exemption provided by this paragraph (14) includes, but is not limited to, graphic arts machinery and equipment, as defined in paragraph (4) of this Section.
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|
(15) Proceeds of mandatory service charges separately
|
| stated on customers' bills for purchase and consumption of food and beverages, to the extent that the proceeds of the service charge are in fact turned over as tips or as a substitute for tips to the employees who participate directly in preparing, serving, hosting or cleaning up the food or beverage function with respect to which the service charge is imposed.
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|
(16) Tangible personal property sold to a purchaser
|
| if the purchaser is exempt from use tax by operation of federal law. This paragraph is exempt from the provisions of Section 2-70.
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|
(17) Tangible personal property sold to a common
|
| carrier by rail or motor that receives the physical possession of the property in Illinois and that transports the property, or shares with another common carrier in the transportation of the property, out of Illinois on a standard uniform bill of lading showing the seller of the property as the shipper or consignor of the property to a destination outside Illinois, for use outside Illinois.
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|
(18) Legal tender, currency, medallions, or gold or
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| silver coinage issued by the State of Illinois, the government of the United States of America, or the government of any foreign country, and bullion.
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|
(19) Until July 1, 2003, oil field exploration,
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| drilling, and production equipment, including (i) rigs and parts of rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and tubular goods, including casing and drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow lines, (v) any individual replacement part for oil field exploration, drilling, and production equipment, and (vi) machinery and equipment purchased for lease; but excluding motor vehicles required to be registered under the Illinois Vehicle Code.
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|
(20) Photoprocessing machinery and equipment,
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| including repair and replacement parts, both new and used, including that manufactured on special order, certified by the purchaser to be used primarily for photoprocessing, and including photoprocessing machinery and equipment purchased for lease.
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|
(21) Until July 1, 2028, coal and aggregate
|
| exploration, mining, off-highway hauling, processing, maintenance, and reclamation equipment, including replacement parts and equipment, and including equipment purchased for lease, but excluding motor vehicles required to be registered under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456) for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
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|
(22) Until June 30, 2013, fuel and petroleum products
|
| sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight destined for or returning from a location or locations outside the United States without regard to previous or subsequent domestic stopovers.
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|
Beginning July 1, 2013, fuel and petroleum products
|
| sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
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|
(23) A transaction in which the purchase order is
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| received by a florist who is located outside Illinois, but who has a florist located in Illinois deliver the property to the purchaser or the purchaser's donee in Illinois.
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|
(24) Fuel consumed or used in the operation of ships,
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| barges, or vessels that are used primarily in or for the transportation of property or the conveyance of persons for hire on rivers bordering on this State if the fuel is delivered by the seller to the purchaser's barge, ship, or vessel while it is afloat upon that bordering river.
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|
(25) Except as provided in item (25-5) of this
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| Section, a motor vehicle sold in this State to a nonresident even though the motor vehicle is delivered to the nonresident in this State, if the motor vehicle is not to be titled in this State, and if a drive-away permit is issued to the motor vehicle as provided in Section 3-603 of the Illinois Vehicle Code or if the nonresident purchaser has vehicle registration plates to transfer to the motor vehicle upon returning to his or her home state. The issuance of the drive-away permit or having the out-of-state registration plates to be transferred is prima facie evidence that the motor vehicle will not be titled in this State.
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|
(25-5) The exemption under item (25) does not apply
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| if the state in which the motor vehicle will be titled does not allow a reciprocal exemption for a motor vehicle sold and delivered in that state to an Illinois resident but titled in Illinois. The tax collected under this Act on the sale of a motor vehicle in this State to a resident of another state that does not allow a reciprocal exemption shall be imposed at a rate equal to the state's rate of tax on taxable property in the state in which the purchaser is a resident, except that the tax shall not exceed the tax that would otherwise be imposed under this Act. At the time of the sale, the purchaser shall execute a statement, signed under penalty of perjury, of his or her intent to title the vehicle in the state in which the purchaser is a resident within 30 days after the sale and of the fact of the payment to the State of Illinois of tax in an amount equivalent to the state's rate of tax on taxable property in his or her state of residence and shall submit the statement to the appropriate tax collection agency in his or her state of residence. In addition, the retailer must retain a signed copy of the statement in his or her records. Nothing in this item shall be construed to require the removal of the vehicle from this state following the filing of an intent to title the vehicle in the purchaser's state of residence if the purchaser titles the vehicle in his or her state of residence within 30 days after the date of sale. The tax collected under this Act in accordance with this item (25-5) shall be proportionately distributed as if the tax were collected at the 6.25% general rate imposed under this Act.
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|
(25-7) Beginning on July 1, 2007, no tax is imposed
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| under this Act on the sale of an aircraft, as defined in Section 3 of the Illinois Aeronautics Act, if all of the following conditions are met:
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|
(1) the aircraft leaves this State within 15 days
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| after the later of either the issuance of the final billing for the sale of the aircraft, or the authorized approval for return to service, completion of the maintenance record entry, and completion of the test flight and ground test for inspection, as required by 14 CFR 91.407;
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|
(2) the aircraft is not based or registered in
|
| this State after the sale of the aircraft; and
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|
(3) the seller retains in his or her books and
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| records and provides to the Department a signed and dated certification from the purchaser, on a form prescribed by the Department, certifying that the requirements of this item (25-7) are met. The certificate must also include the name and address of the purchaser, the address of the location where the aircraft is to be titled or registered, the address of the primary physical location of the aircraft, and other information that the Department may reasonably require.
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|
For purposes of this item (25-7):
"Based in this State" means hangared, stored, or
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| otherwise used, excluding post-sale customizations as defined in this Section, for 10 or more days in each 12-month period immediately following the date of the sale of the aircraft.
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|
"Registered in this State" means an aircraft
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| registered with the Department of Transportation, Aeronautics Division, or titled or registered with the Federal Aviation Administration to an address located in this State.
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|
This paragraph (25-7) is exempt from the provisions
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|
(26) Semen used for artificial insemination of
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| livestock for direct agricultural production.
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|
(27) Horses, or interests in horses, registered with
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| and meeting the requirements of any of the Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter Horse Association, United States Trotting Association, or Jockey Club, as appropriate, used for purposes of breeding or racing for prizes. This item (27) is exempt from the provisions of Section 2-70, and the exemption provided for under this item (27) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88) for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
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|
(28) Computers and communications equipment utilized
|
| for any hospital purpose and equipment used in the diagnosis, analysis, or treatment of hospital patients sold to a lessor who leases the equipment, under a lease of one year or longer executed or in effect at the time of the purchase, to a hospital that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.
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|
(29) Personal property sold to a lessor who leases
|
| the property, under a lease of one year or longer executed or in effect at the time of the purchase, to a governmental body that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.
|
|
(30) Beginning with taxable years ending on or after
|
| December 31, 1995 and ending with taxable years ending on or before December 31, 2004, personal property that is donated for disaster relief to be used in a State or federally declared disaster area in Illinois or bordering Illinois by a manufacturer or retailer that is registered in this State to a corporation, society, association, foundation, or institution that has been issued a sales tax exemption identification number by the Department that assists victims of the disaster who reside within the declared disaster area.
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|
(31) Beginning with taxable years ending on or after
|
| December 31, 1995 and ending with taxable years ending on or before December 31, 2004, personal property that is used in the performance of infrastructure repairs in this State, including but not limited to municipal roads and streets, access roads, bridges, sidewalks, waste disposal systems, water and sewer line extensions, water distribution and purification facilities, storm water drainage and retention facilities, and sewage treatment facilities, resulting from a State or federally declared disaster in Illinois or bordering Illinois when such repairs are initiated on facilities located in the declared disaster area within 6 months after the disaster.
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|
(32) Beginning July 1, 1999, game or game birds sold
|
| at a "game breeding and hunting preserve area" as that term is used in the Wildlife Code. This paragraph is exempt from the provisions of Section 2-70.
|
|
(33) A motor vehicle, as that term is defined in
|
| Section 1-146 of the Illinois Vehicle Code, that is donated to a corporation, limited liability company, society, association, foundation, or institution that is determined by the Department to be organized and operated exclusively for educational purposes. For purposes of this exemption, "a corporation, limited liability company, society, association, foundation, or institution organized and operated exclusively for educational purposes" means all tax-supported public schools, private schools that offer systematic instruction in useful branches of learning by methods common to public schools and that compare favorably in their scope and intensity with the course of study presented in tax-supported schools, and vocational or technical schools or institutes organized and operated exclusively to provide a course of study of not less than 6 weeks duration and designed to prepare individuals to follow a trade or to pursue a manual, technical, mechanical, industrial, business, or commercial occupation.
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|
(34) Beginning January 1, 2000, personal property,
|
| including food, purchased through fundraising events for the benefit of a public or private elementary or secondary school, a group of those schools, or one or more school districts if the events are sponsored by an entity recognized by the school district that consists primarily of volunteers and includes parents and teachers of the school children. This paragraph does not apply to fundraising events (i) for the benefit of private home instruction or (ii) for which the fundraising entity purchases the personal property sold at the events from another individual or entity that sold the property for the purpose of resale by the fundraising entity and that profits from the sale to the fundraising entity. This paragraph is exempt from the provisions of Section 2-70.
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|
(35) Beginning January 1, 2000 and through December
|
| 31, 2001, new or used automatic vending machines that prepare and serve hot food and beverages, including coffee, soup, and other items, and replacement parts for these machines. Beginning January 1, 2002 and through June 30, 2003, machines and parts for machines used in commercial, coin-operated amusement and vending business if a use or occupation tax is paid on the gross receipts derived from the use of the commercial, coin-operated amusement and vending machines. This paragraph is exempt from the provisions of Section 2-70.
|
|
(35-5) Beginning August 23, 2001 and through June 30,
|
| 2016, food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances, and insulin, urine testing materials, syringes, and needles used by diabetics, for human use, when purchased for use by a person receiving medical assistance under Article V of the Illinois Public Aid Code who resides in a licensed long-term care facility, as defined in the Nursing Home Care Act, or a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
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|
(36) Beginning August 2, 2001, computers and
|
| communications equipment utilized for any hospital purpose and equipment used in the diagnosis, analysis, or treatment of hospital patients sold to a lessor who leases the equipment, under a lease of one year or longer executed or in effect at the time of the purchase, to a hospital that has been issued an active tax exemption identification number by the Department under Section 1g of this Act. This paragraph is exempt from the provisions of Section 2-70.
|
|
(37) Beginning August 2, 2001, personal property sold
|
| to a lessor who leases the property, under a lease of one year or longer executed or in effect at the time of the purchase, to a governmental body that has been issued an active tax exemption identification number by the Department under Section 1g of this Act. This paragraph is exempt from the provisions of Section 2-70.
|
|
(38) Beginning on January 1, 2002 and through June
|
| 30, 2016, tangible personal property purchased from an Illinois retailer by a taxpayer engaged in centralized purchasing activities in Illinois who will, upon receipt of the property in Illinois, temporarily store the property in Illinois (i) for the purpose of subsequently transporting it outside this State for use or consumption thereafter solely outside this State or (ii) for the purpose of being processed, fabricated, or manufactured into, attached to, or incorporated into other tangible personal property to be transported outside this State and thereafter used or consumed solely outside this State. The Director of Revenue shall, pursuant to rules adopted in accordance with the Illinois Administrative Procedure Act, issue a permit to any taxpayer in good standing with the Department who is eligible for the exemption under this paragraph (38). The permit issued under this paragraph (38) shall authorize the holder, to the extent and in the manner specified in the rules adopted under this Act, to purchase tangible personal property from a retailer exempt from the taxes imposed by this Act. Taxpayers shall maintain all necessary books and records to substantiate the use and consumption of all such tangible personal property outside of the State of Illinois.
|
|
(39) Beginning January 1, 2008, tangible personal
|
| property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 2-70.
|
|
(40) Beginning January 1, 2010 and continuing through
|
| December 31, 2024, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft, but excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. This exemption applies only to the sale of qualifying tangible personal property to persons who modify, refurbish, complete, replace, or maintain an aircraft and who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (40) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (40) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
|
|
(41) Tangible personal property sold to a
|
| public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall. This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code. This paragraph is exempt from the provisions of Section 2-70.
|
|
(42) Beginning January 1, 2017 and through December
|
| 31, 2026, menstrual pads, tampons, and menstrual cups.
|
|
(43) Merchandise that is subject to the Rental
|
| Purchase Agreement Occupation and Use Tax. The purchaser must certify that the item is purchased to be rented subject to a rental purchase agreement, as defined in the Rental Purchase Agreement Act, and provide proof of registration under the Rental Purchase Agreement Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 2-70.
|
|
(44) Qualified tangible personal property used in the
|
| construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant. Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
|
|
The Department of Commerce and Economic Opportunity
|
| shall grant a certificate of exemption under this item (44) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois.
|
|
For the purposes of this item (44):
"Data center" means a building or a series of
|
| buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
|
|
"Qualified tangible personal property" means:
|
| electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center. The term "qualified tangible personal property" also includes building materials physically incorporated into the qualifying data center. To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
|
|
This item (44) is exempt from the provisions of
|
|
(45) Beginning January 1, 2020 and through December
|
| 31, 2020, sales of tangible personal property made by a marketplace seller over a marketplace for which tax is due under this Act but for which use tax has been collected and remitted to the Department by a marketplace facilitator under Section 2d of the Use Tax Act are exempt from tax under this Act. A marketplace seller claiming this exemption shall maintain books and records demonstrating that the use tax on such sales has been collected and remitted by a marketplace facilitator. Marketplace sellers that have properly remitted tax under this Act on such sales may file a claim for credit as provided in Section 6 of this Act. No claim is allowed, however, for such taxes for which a credit or refund has been issued to the marketplace facilitator under the Use Tax Act, or for which the marketplace facilitator has filed a claim for credit or refund under the Use Tax Act.
|
|
(46) Beginning July 1, 2022, breast pumps, breast
|
| pump collection and storage supplies, and breast pump kits. This item (46) is exempt from the provisions of Section 2-70. As used in this item (46):
|
|
"Breast pump" means an electrically controlled or
|
| manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
|
|
"Breast pump collection and storage supplies" means
|
| items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
|
|
"Breast pump collection and storage supplies"
|
| includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
|
|
"Breast pump collection and storage supplies" does
|
| not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
|
|
"Breast pump kit" means a kit that: (1) contains no
|
| more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
|
|
(47) Tangible personal property sold by or on behalf
|
| of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act. This item (47) is exempt from the provisions of Section 2-70.
|
|
(48) Beginning on January 1, 2024, tangible personal
|
| property purchased by an active duty member of the armed forces of the United States who presents valid military identification and purchases the property using a form of payment where the federal government is the payor. The member of the armed forces must complete, at the point of sale, a form prescribed by the Department of Revenue documenting that the transaction is eligible for the exemption under this paragraph. Retailers must keep the form as documentation of the exemption in their records for a period of not less than 6 years. "Armed forces of the United States" means the United States Army, Navy, Air Force, Marine Corps, or Coast Guard. This paragraph is exempt from the provisions of Section 2-70.
|
|
(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1026, eff. 5-27-22; 103-384, eff. 1-1-24.)
|
(35 ILCS 120/3) (from Ch. 120, par. 442)
(Text of Section from P.A. 103-9)
Sec. 3. Except as provided in this Section, on or before the twentieth
day of each calendar month, every person engaged in the business of
selling tangible personal property at retail in this State during the
preceding calendar month shall file a return with the Department, stating: 1. The name of the seller; 2. His residence address and the address of his |
| principal place of business and the address of the principal place of business (if that is a different address) from which he engages in the business of selling tangible personal property at retail in this State;
|
|
3. Total amount of receipts received by him during
|
| the preceding calendar month or quarter, as the case may be, from sales of tangible personal property, and from services furnished, by him during such preceding calendar month or quarter;
|
|
4. Total amount received by him during the preceding
|
| calendar month or quarter on charge and time sales of tangible personal property, and from services furnished, by him prior to the month or quarter for which the return is filed;
|
|
5. Deductions allowed by law;
6. Gross receipts which were received by him during
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| the preceding calendar month or quarter and upon the basis of which the tax is imposed, including gross receipts on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) which were received during the preceding calendar month or quarter and upon which tax would have been due but for the 0% rate imposed under Public Act 102-700;
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7. The amount of credit provided in Section 2d of
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8. The amount of tax due, including the amount of tax
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| that would have been due on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) but for the 0% rate imposed under Public Act 102-700;
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9. The signature of the taxpayer; and
10. Such other reasonable information as the
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On and after January 1, 2018, except for returns required to be filed prior to January 1, 2023 for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, with respect to retailers whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act shall be filed electronically. On and after January 1, 2023, with respect to retailers whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act, including, but not limited to, returns for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, shall be filed electronically. Retailers who demonstrate that they do not have access to the Internet or demonstrate hardship in filing electronically may petition the Department to waive the electronic filing requirement.
If a taxpayer fails to sign a return within 30 days after the proper notice
and demand for signature by the Department, the return shall be considered
valid and any amount shown to be due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of prepaid tax issued
pursuant to Section 2e for which credit is claimed.
Prior to October 1, 2003, and on and after September 1, 2004 a retailer may accept a Manufacturer's Purchase
Credit
certification from a purchaser in satisfaction of Use Tax
as provided in Section 3-85 of the Use Tax Act if the purchaser provides the
appropriate documentation as required by Section 3-85
of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003 and on and after September 1, 2004 as provided
in
Section 3-85 of the Use Tax Act, may be used by that retailer to
satisfy Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts
subject to tax from a qualifying purchase. A Manufacturer's Purchase Credit
reported on any original or amended return
filed under
this Act after October 20, 2003 for reporting periods prior to September 1, 2004 shall be disallowed. Manufacturer's Purchase Credit reported on annual returns due on or after January 1, 2005 will be disallowed for periods prior to September 1, 2004. No Manufacturer's
Purchase Credit may be used after September 30, 2003 through August 31, 2004 to
satisfy any
tax liability imposed under this Act, including any audit liability.
Beginning on July 1, 2023 and through December 31, 2032, a retailer may accept a Sustainable Aviation Fuel Purchase Credit certification from an air common carrier-purchaser in satisfaction of Use Tax on aviation fuel as provided in Section 3-87 of the Use Tax Act if the purchaser provides the appropriate documentation as required by Section 3-87 of the Use Tax Act. A Sustainable Aviation Fuel Purchase Credit certification accepted by a retailer in accordance with this paragraph may be used by that retailer to satisfy Retailers' Occupation Tax liability (but not in satisfaction of penalty or interest) in the amount claimed in the certification, not to exceed 6.25% of the receipts subject to tax from a sale of aviation fuel. In addition, for a sale of aviation fuel to qualify to earn the Sustainable Aviation Fuel Purchase Credit, retailers must retain in their books and records a certification from the producer of the aviation fuel that the aviation fuel sold by the retailer and for which a sustainable aviation fuel purchase credit was earned meets the definition of sustainable aviation fuel under Section 3-87 of the Use Tax Act. The documentation must include detail sufficient for the Department to determine the number of gallons of sustainable aviation fuel sold.
The Department may require returns to be filed on a quarterly basis.
If so required, a return for each calendar quarter shall be filed on or
before the twentieth day of the calendar month following the end of such
calendar quarter. The taxpayer shall also file a return with the
Department for each of the first two months of each calendar quarter, on or
before the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business
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| from which he engages in the business of selling tangible personal property at retail in this State;
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3. The total amount of taxable receipts received by
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| him during the preceding calendar month from sales of tangible personal property by him during such preceding calendar month, including receipts from charge and time sales, but less all deductions allowed by law;
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4. The amount of credit provided in Section 2d of
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5. The amount of tax due; and
6. Such other reasonable information as the
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Every person engaged in the business of selling aviation fuel at retail in this State during the preceding calendar month shall, instead of reporting and paying tax as otherwise required by this Section, report and pay such tax on a separate aviation fuel tax return. The requirements related to the return shall be as otherwise provided in this Section. Notwithstanding any other provisions of this Act to the contrary, retailers selling aviation fuel shall file all aviation fuel tax returns and shall make all aviation fuel tax payments by electronic means in the manner and form required by the Department. For purposes of this Section, "aviation fuel" means jet fuel and aviation gasoline.
Beginning on October 1, 2003, any person who is not a licensed
distributor, importing distributor, or manufacturer, as defined in the Liquor
Control Act of 1934, but is engaged in the business of
selling, at retail, alcoholic liquor
shall file a statement with the Department of Revenue, in a format
and at a time prescribed by the Department, showing the total amount paid for
alcoholic liquor purchased during the preceding month and such other
information as is reasonably required by the Department.
The Department may adopt rules to require
that this statement be filed in an electronic or telephonic format. Such rules
may provide for exceptions from the filing requirements of this paragraph. For
the
purposes of this
paragraph, the term "alcoholic liquor" shall have the meaning prescribed in the
Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing distributor, and
manufacturer of alcoholic liquor as defined in the Liquor Control Act of 1934,
shall file a
statement with the Department of Revenue, no later than the 10th day of the
month for the
preceding month during which transactions occurred, by electronic means,
showing the
total amount of gross receipts from the sale of alcoholic liquor sold or
distributed during
the preceding month to purchasers; identifying the purchaser to whom it was
sold or
distributed; the purchaser's tax registration number; and such other
information
reasonably required by the Department. A distributor, importing distributor, or manufacturer of alcoholic liquor must personally deliver, mail, or provide by electronic means to each retailer listed on the monthly statement a report containing a cumulative total of that distributor's, importing distributor's, or manufacturer's total sales of alcoholic liquor to that retailer no later than the 10th day of the month for the preceding month during which the transaction occurred. The distributor, importing distributor, or manufacturer shall notify the retailer as to the method by which the distributor, importing distributor, or manufacturer will provide the sales information. If the retailer is unable to receive the sales information by electronic means, the distributor, importing distributor, or manufacturer shall furnish the sales information by personal delivery or by mail. For purposes of this paragraph, the term "electronic means" includes, but is not limited to, the use of a secure Internet website, e-mail, or facsimile.
If a total amount of less than $1 is payable, refundable or creditable,
such amount shall be disregarded if it is less than 50 cents and shall be
increased to $1 if it is 50 cents or more.
Notwithstanding any other provision of this Act to the contrary, retailers subject to tax on cannabis shall file all cannabis tax returns and shall make all cannabis tax payments by electronic means in the manner and form required by the Department.
Beginning October 1, 1993,
a taxpayer who has an average monthly tax liability of $150,000 or more shall
make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1, 1994, a taxpayer
who has an average monthly tax liability of $100,000 or more shall make all
payments required by rules of the Department by electronic funds transfer.
Beginning October 1, 1995, a taxpayer who has an average monthly tax liability
of $50,000 or more shall make all
payments required by rules of the Department by electronic funds transfer.
Beginning October 1, 2000, a taxpayer who has an annual tax liability of
$200,000 or more shall make all payments required by rules of the Department by
electronic funds transfer. The term "annual tax liability" shall be the sum of
the taxpayer's liabilities under this Act, and under all other State and local
occupation and use tax laws administered by the Department, for the immediately
preceding calendar year.
The term "average monthly tax liability" shall be the sum of the
taxpayer's liabilities under this
Act, and under all other State and local occupation and use tax
laws administered by the Department, for the immediately preceding calendar
year divided by 12.
Beginning on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the Department of
Revenue Law shall make all payments required by rules of the Department by
electronic funds transfer.
Before August 1 of each year beginning in 1993, the Department shall
notify all taxpayers required to make payments by electronic funds
transfer. All taxpayers
required to make payments by electronic funds transfer shall make those
payments for
a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic funds transfer may
make payments by electronic funds transfer with
the permission of the Department.
All taxpayers required to make payment by electronic funds transfer and
any taxpayers authorized to voluntarily make payments by electronic funds
transfer shall make those payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to effectuate a
program of electronic funds transfer and the requirements of this Section.
Any amount which is required to be shown or reported on any return or
other document under this Act shall, if such amount is not a whole-dollar
amount, be increased to the nearest whole-dollar amount in any case where
the fractional part of a dollar is 50 cents or more, and decreased to the
nearest whole-dollar amount where the fractional part of a dollar is less
than 50 cents.
If the retailer is otherwise required to file a monthly return and if the
retailer's average monthly tax liability to the Department does not exceed
$200, the Department may authorize his returns to be filed on a quarter
annual basis, with the return for January, February and March of a given
year being due by April 20 of such year; with the return for April, May and
June of a given year being due by July 20 of such year; with the return for
July, August and September of a given year being due by October 20 of such
year, and with the return for October, November and December of a given
year being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or quarterly
return and if the retailer's average monthly tax liability with the
Department does not exceed $50, the Department may authorize his returns to
be filed on an annual basis, with the return for a given year being due by
January 20 of the following year.
Such quarter annual and annual returns, as to form and substance,
shall be subject to the same requirements as monthly returns.
Notwithstanding any other provision in this Act concerning the time
within which a retailer may file his return, in the case of any retailer
who ceases to engage in a kind of business which makes him responsible
for filing returns under this Act, such retailer shall file a final
return under this Act with the Department not more than one month after
discontinuing such business.
Where the same person has more than one business registered with the
Department under separate registrations under this Act, such person may
not file each return that is due as a single return covering all such
registered businesses, but shall file separate returns for each such
registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with an agency of
this State, except as otherwise provided in this Section, every
retailer selling this kind of tangible personal property shall file,
with the Department, upon a form to be prescribed and supplied by the
Department, a separate return for each such item of tangible personal
property which the retailer sells, except that if, in the same
transaction, (i) a retailer of aircraft, watercraft, motor vehicles or
trailers transfers more than one aircraft, watercraft, motor
vehicle or trailer to another aircraft, watercraft, motor vehicle
retailer or trailer retailer for the purpose of resale
or (ii) a retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle, or trailer to a
purchaser for use as a qualifying rolling stock as provided in Section 2-5 of
this Act, then
that seller may report the transfer of all aircraft,
watercraft, motor vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting return form. For
purposes of this Section, "watercraft" means a Class 2, Class 3, or Class 4
watercraft as defined in Section 3-2 of the Boat Registration and Safety Act, a
personal watercraft, or any boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, every person who is engaged in the business of leasing or renting such items and who, in connection with such business, sells any such item to a retailer for the purpose of resale is, notwithstanding any other provision of this Section to the contrary, authorized to meet the return-filing requirement of this Act by reporting the transfer of all the aircraft, watercraft, motor vehicles, or trailers transferred for resale during a month to the Department on the same uniform invoice-transaction reporting return form on or before the 20th of the month following the month in which the transfer takes place. Notwithstanding any other provision of this Act to the contrary, all returns filed under this paragraph must be filed by electronic means in the manner and form as required by the Department.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with an agency of
this State, so that all
retailers' occupation tax liability is required to be reported, and is
reported, on such transaction reporting returns and who is not otherwise
required to file monthly or quarterly returns, need not file monthly or
quarterly returns. However, those retailers shall be required to
file returns on an annual basis.
The transaction reporting return, in the case of motor vehicles
or trailers that are required to be registered with an agency of this
State, shall
be the same document as the Uniform Invoice referred to in Section 5-402
of the Illinois Vehicle Code and must show the name and address of the
seller; the name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the traded-in
tangible personal property, if any, to the extent to which Section 1 of
this Act allows an exemption for the value of traded-in property; the
balance payable after deducting such trade-in allowance from the total
selling price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the purchaser by the
retailer on such transaction (or satisfactory evidence that such tax is
not due in that particular instance, if that is claimed to be the fact);
the place and date of the sale; a sufficient identification of the
property sold; such other information as is required in Section 5-402 of
the Illinois Vehicle Code, and such other information as the Department
may reasonably require.
The transaction reporting return in the case of watercraft
or aircraft must show
the name and address of the seller; the name and address of the
purchaser; the amount of the selling price including the amount allowed
by the retailer for traded-in property, if any; the amount allowed by
the retailer for the traded-in tangible personal property, if any, to
the extent to which Section 1 of this Act allows an exemption for the
value of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of tax due
from the retailer with respect to such transaction; the amount of tax
collected from the purchaser by the retailer on such transaction (or
satisfactory evidence that such tax is not due in that particular
instance, if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and such other
information as the Department may reasonably require.
Such transaction reporting return shall be filed not later than 20
days after the day of delivery of the item that is being sold, but may
be filed by the retailer at any time sooner than that if he chooses to
do so. The transaction reporting return and tax remittance or proof of
exemption from the Illinois use tax may be transmitted to the Department
by way of the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if titling or
registration is required) if the Department and such agency or State
officer determine that this procedure will expedite the processing of
applications for title or registration.
With each such transaction reporting return, the retailer shall remit
the proper amount of tax due (or shall submit satisfactory evidence that
the sale is not taxable if that is the case), to the Department or its
agents, whereupon the Department shall issue, in the purchaser's name, a
use tax receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with whom, he must
title or register the tangible personal property that is involved (if
titling or registration is required) in support of such purchaser's
application for an Illinois certificate or other evidence of title or
registration to such tangible personal property.
No retailer's failure or refusal to remit tax under this Act
precludes a user, who has paid the proper tax to the retailer, from
obtaining his certificate of title or other evidence of title or
registration (if titling or registration is required) upon satisfying
the Department that such user has paid the proper tax (if tax is due) to
the retailer. The Department shall adopt appropriate rules to carry out
the mandate of this paragraph.
If the user who would otherwise pay tax to the retailer wants the
transaction reporting return filed and the payment of the tax or proof
of exemption made to the Department before the retailer is willing to
take these actions and such user has not paid the tax to the retailer,
such user may certify to the fact of such delay by the retailer and may
(upon the Department being satisfied of the truth of such certification)
transmit the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to the
Department and obtain his tax receipt or exemption determination, in
which event the transaction reporting return and tax remittance (if a
tax payment was required) shall be credited by the Department to the
proper retailer's account with the Department, but without the 2.1% or 1.75%
discount provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the same
amount and in the same form in which it would be remitted if the tax had
been remitted to the Department by the retailer.
Refunds made by the seller during the preceding return period to
purchasers, on account of tangible personal property returned to the
seller, shall be allowed as a deduction under subdivision 5 of his monthly
or quarterly return, as the case may be, in case the
seller had theretofore included the receipts from the sale of such
tangible personal property in a return filed by him and had paid the tax
imposed by this Act with respect to such receipts.
Where the seller is a corporation, the return filed on behalf of such
corporation shall be signed by the president, vice-president, secretary
or treasurer or by the properly accredited agent of such corporation.
Where the seller is a limited liability company, the return filed on behalf
of the limited liability company shall be signed by a manager, member, or
properly accredited agent of the limited liability company.
Except as provided in this Section, the retailer filing the return
under this Section shall, at the time of filing such return, pay to the
Department the amount of tax imposed by this Act less a discount of 2.1%
prior to January 1, 1990 and 1.75% on and after January 1, 1990, or $5 per
calendar year, whichever is greater, which is allowed to
reimburse the retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying data to
the Department on request. On and after January 1, 2021, a certified service provider, as defined in the Leveling the Playing Field for Illinois Retail Act, filing the return under this Section on behalf of a remote retailer shall, at the time of such return, pay to the Department the amount of tax imposed by this Act less a discount of 1.75%. A remote retailer using a certified service provider to file a return on its behalf, as provided in the Leveling the Playing Field for Illinois Retail Act, is not eligible for the discount. When determining the discount allowed under this Section, retailers shall include the amount of tax that would have been due at the 1% rate but for the 0% rate imposed under Public Act 102-700. When determining the discount allowed under this Section, retailers shall include the amount of tax that would have been due at the 6.25% rate but for the 1.25% rate imposed on sales tax holiday items under Public Act 102-700. The discount under this Section is not allowed for the 1.25% portion of taxes paid on aviation fuel that is subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to Section 2d
of this Act shall be included in the amount on which such
2.1% or 1.75% discount is computed. In the case of retailers who report
and pay the tax on a transaction by transaction basis, as provided in this
Section, such discount shall be taken with each such tax remittance
instead of when such retailer files his periodic return. The discount allowed under this Section is allowed only for returns that are filed in the manner required by this Act. The Department may disallow the discount for retailers whose certificate of registration is revoked at the time the return is filed, but only if the Department's decision to revoke the certificate of registration has become final.
Before October 1, 2000, if the taxpayer's average monthly tax liability
to the Department
under this Act, the Use Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act, excluding any liability for prepaid sales
tax to be remitted in accordance with Section 2d of this Act, was
$10,000
or more during the preceding 4 complete calendar quarters, he shall file a
return with the Department each month by the 20th day of the month next
following the month during which such tax liability is incurred and shall
make payments to the Department on or before the 7th, 15th, 22nd and last
day of the month during which such liability is incurred.
On and after October 1, 2000, if the taxpayer's average monthly tax liability
to the Department under this Act, the Use Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act, excluding any liability for prepaid sales tax
to be remitted in accordance with Section 2d of this Act, was $20,000 or more
during the preceding 4 complete calendar quarters, he shall file a return with
the Department each month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make payment to the
Department on or before the 7th, 15th, 22nd and last day of the month during
which such liability is incurred.
If the month
during which such tax liability is incurred began prior to January 1, 1985,
each payment shall be in an amount equal to 1/4 of the taxpayer's actual
liability for the month or an amount set by the Department not to exceed
1/4 of the average monthly liability of the taxpayer to the Department for
the preceding 4 complete calendar quarters (excluding the month of highest
liability and the month of lowest liability in such 4 quarter period). If
the month during which such tax liability is incurred begins on or after
January 1, 1985 and prior to January 1, 1987, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar
month of the preceding year. If the month during which such tax
liability is incurred begins on or after January 1, 1987 and prior to
January 1, 1988, each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If the month
during which such tax liability is incurred begins on or after January 1,
1988, and prior to January 1, 1989, or begins on or after January 1, 1996, each
payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the month or 25% of
the taxpayer's liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on or after
January 1, 1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the
taxpayer's actual liability for the month or 25% of the taxpayer's
liability for the same calendar month of the preceding year or 100% of the
taxpayer's actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited against
the final tax liability of the taxpayer's return for that month. Before
October 1, 2000, once
applicable, the requirement of the making of quarter monthly payments to
the Department by taxpayers having an average monthly tax liability of
$10,000 or more as determined in the manner provided above
shall continue
until such taxpayer's average monthly liability to the Department during
the preceding 4 complete calendar quarters (excluding the month of highest
liability and the month of lowest liability) is less than
$9,000, or until
such taxpayer's average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar quarter period
is less than $10,000. However, if a taxpayer can show the
Department that
a substantial change in the taxpayer's business has occurred which causes
the taxpayer to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000 threshold
stated above, then
such taxpayer
may petition the Department for a change in such taxpayer's reporting
status. On and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by taxpayers having an
average monthly tax liability of $20,000 or more as determined in the manner
provided above shall continue until such taxpayer's average monthly liability
to the Department during the preceding 4 complete calendar quarters (excluding
the month of highest liability and the month of lowest liability) is less than
$19,000 or until such taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete calendar quarter
period is less than $20,000. However, if a taxpayer can show the Department
that a substantial change in the taxpayer's business has occurred which causes
the taxpayer to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000 threshold stated
above, then such taxpayer may petition the Department for a change in such
taxpayer's reporting status. The Department shall change such taxpayer's
reporting status
unless it finds that such change is seasonal in nature and not likely to be
long term. Quarter monthly payment status shall be determined under this paragraph as if the rate reduction to 0% in Public Act 102-700 on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) had not occurred. For quarter monthly payments due under this paragraph on or after July 1, 2023 and through June 30, 2024, "25% of the taxpayer's liability for the same calendar month of the preceding year" shall be determined as if the rate reduction to 0% in Public Act 102-700 had not occurred. Quarter monthly payment status shall be determined under this paragraph as if the rate reduction to 1.25% in Public Act 102-700 on sales tax holiday items had not occurred. For quarter monthly payments due on or after July 1, 2023 and through June 30, 2024, "25% of the taxpayer's liability for the same calendar month of the preceding year" shall be determined as if the rate reduction to 1.25% in Public Act 102-700 on sales tax holiday items had not occurred. If any such quarter monthly payment is not paid at the time or
in the amount required by this Section, then the taxpayer shall be liable for
penalties and interest on the difference
between the minimum amount due as a payment and the amount of such quarter
monthly payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the Department in
excess of the minimum payments previously due as provided in this Section.
The Department shall make reasonable rules and regulations to govern the
quarter monthly payment amount and quarter monthly payment dates for
taxpayers who file on other than a calendar monthly basis.
The provisions of this paragraph apply before October 1, 2001.
Without regard to whether a taxpayer is required to make quarter monthly
payments as specified above, any taxpayer who is required by Section 2d
of this Act to collect and remit prepaid taxes and has collected prepaid
taxes which average in excess of $25,000 per month during the preceding
2 complete calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such liability
is incurred. If the month during which such tax liability is incurred
began prior to September 1, 1985 (the effective date of Public Act 84-221), each
payment shall be in an amount not less than 22.5% of the taxpayer's actual
liability under Section 2d. If the month during which such tax liability
is incurred begins on or after January 1, 1986, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar month of the
preceding calendar year. If the month during which such tax liability is
incurred begins on or after January 1, 1987, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for the month or
26.25% of the taxpayer's liability for the same calendar month of the
preceding year. The amount of such quarter monthly payments shall be
credited against the final tax liability of the taxpayer's return for that
month filed under this Section or Section 2f, as the case may be. Once
applicable, the requirement of the making of quarter monthly payments to
the Department pursuant to this paragraph shall continue until such
taxpayer's average monthly prepaid tax collections during the preceding 2
complete calendar quarters is $25,000 or less. If any such quarter monthly
payment is not paid at the time or in the amount required, the taxpayer
shall be liable for penalties and interest on such difference, except
insofar as the taxpayer has previously made payments for that month in
excess of the minimum payments previously due.
The provisions of this paragraph apply on and after October 1, 2001.
Without regard to whether a taxpayer is required to make quarter monthly
payments as specified above, any taxpayer who is required by Section 2d of this
Act to collect and remit prepaid taxes and has collected prepaid taxes that
average in excess of $20,000 per month during the preceding 4 complete calendar
quarters shall file a return with the Department as required by Section 2f
and shall make payments to the Department on or before the 7th, 15th, 22nd and
last day of the month during which the liability is incurred. Each payment
shall be in an amount equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar month of the
preceding year. The amount of the quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for that month filed
under this Section or Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the Department
pursuant to this paragraph shall continue until the taxpayer's average monthly
prepaid tax collections during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of lowest liability) is
less than $19,000 or until such taxpayer's average monthly liability to the
Department as computed for each calendar quarter of the 4 preceding complete
calendar quarters is less than $20,000. If any such quarter monthly payment is
not paid at the time or in the amount required, the taxpayer shall be liable
for penalties and interest on such difference, except insofar as the taxpayer
has previously made payments for that month in excess of the minimum payments
previously due.
If any payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Use Tax Act, the Service
Occupation Tax Act and the Service Use Tax Act, as shown on an original
monthly return, the Department shall, if requested by the taxpayer, issue to
the taxpayer a credit memorandum no later than 30 days after the date of
payment. The credit evidenced by such credit memorandum may
be assigned by the taxpayer to a similar taxpayer under this Act, the
Use Tax Act, the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations to be prescribed by the
Department. If no such request is made, the taxpayer may credit such excess
payment against tax liability subsequently to be remitted to the Department
under this Act, the Use Tax Act, the Service Occupation Tax Act or the
Service Use Tax Act, in accordance with reasonable rules and regulations
prescribed by the Department. If the Department subsequently determined
that all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount shall be reduced
by 2.1% or 1.75% of the difference between the credit taken and that
actually due, and that taxpayer shall be liable for penalties and interest
on such difference.
If a retailer of motor fuel is entitled to a credit under Section 2d of
this Act which exceeds the taxpayer's liability to the Department under
this Act for the month for which the taxpayer is filing a return, the
Department shall issue the taxpayer a credit memorandum for the excess.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund, a special fund in the State treasury which
is hereby created, the net revenue realized for the preceding month from
the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall pay into
the County and Mass Transit District Fund, a special fund in the State
treasury which is hereby created, 4% of the net revenue realized
for the preceding month from the 6.25% general rate other than aviation fuel sold on or after December 1, 2019. This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
County and Mass Transit District Fund 20% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of motor fuel and
gasohol. If, in any month, the tax on sales tax holiday items, as defined in Section 2-8, is imposed at the rate of 1.25%, then the Department shall pay 20% of the net revenue realized for that month from the 1.25% rate on the selling price of sales tax holiday items into the County and Mass Transit District Fund.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund 16% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of
tangible personal property other than aviation fuel sold on or after December 1, 2019. This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each month the Department shall pay into the State Aviation Program Fund 20% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of aviation fuel, less an amount estimated by the Department to be required for refunds of the 20% portion of the tax on aviation fuel under this Act, which amount shall be deposited into the Aviation Fuel Sales Tax Refund Fund. The Department shall only pay moneys into the State Aviation Program Fund and the Aviation Fuel Sales Tax Refund Fund under this Act for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
Local Government Tax Fund 80% of the net revenue realized for the preceding
month from the 1.25% rate on the selling price of motor fuel and gasohol. If, in any month, the tax on sales tax holiday items, as defined in Section 2-8, is imposed at the rate of 1.25%, then the Department shall pay 80% of the net revenue realized for that month from the 1.25% rate on the selling price of sales tax holiday items into the Local Government Tax Fund.
Beginning October 1, 2009, each month the Department shall pay into the Capital Projects Fund an amount that is equal to an amount estimated by the Department to represent 80% of the net revenue realized for the preceding month from the sale of candy, grooming and hygiene products, and soft drinks that had been taxed at a rate of 1% prior to September 1, 2009 but that are now taxed at 6.25%.
Beginning July 1, 2011, each
month the Department shall pay into the Clean Air Act Permit Fund 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of sorbents used in Illinois in the process of sorbent injection as used to comply with the Environmental Protection Act or the federal Clean Air Act, but the total payment into the Clean Air Act Permit Fund under this Act and the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall pay into the Underground Storage Tank Fund from the proceeds collected under this Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act an amount equal to the average monthly deficit in the Underground Storage Tank Fund during the prior year, as certified annually by the Illinois Environmental Protection Agency, but the total payment into the Underground Storage Tank Fund under this Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act shall not exceed $18,000,000 in any State fiscal year. As used in this paragraph, the "average monthly deficit" shall be equal to the difference between the average monthly claims for payment by the fund and the average monthly revenues deposited into the fund, excluding payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, each month the Department shall deposit $500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department pursuant
to this Act, (a) 1.75% thereof shall be paid into the Build Illinois
Fund and (b) prior to July 1, 1989, 2.2% and on and after July 1, 1989,
3.8% thereof shall be paid into the Build Illinois Fund; provided, however,
that if in any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, as
the case may be, of the moneys received by the Department and required to
be paid into the Build Illinois Fund pursuant to this Act, Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called the "Tax
Acts" and such aggregate of 2.2% or 3.8%, as the case may be, of moneys
being hereinafter called the "Tax Act Amount", and (2) the amount
transferred to the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as hereinafter
defined), an amount equal to the difference shall be immediately paid into
the Build Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; the "Annual Specified Amount" means the amounts
specified below for fiscal years 1986 through 1993:
|
Fiscal Year | Annual Specified Amount | 1986 | $54,800,000 | 1987 | $76,650,000 | 1988 | $80,480,000 | 1989 | $88,510,000 | 1990 | $115,330,000 | 1991 | $145,470,000 | 1992 | $182,730,000 | 1993 | $206,520,000; |
|
and means the Certified Annual Debt Service Requirement (as defined in
Section 13 of the Build Illinois Bond Act) or the Tax Act Amount, whichever
is greater, for fiscal year 1994 and each fiscal year thereafter; and
further provided, that if on the last business day of any month the sum of
(1) the Tax Act Amount required to be deposited into the Build Illinois
Bond Account in the Build Illinois Fund during such month and (2) the
amount transferred to the Build Illinois Fund from the State and Local
Sales Tax Reform Fund shall have been less than 1/12 of the Annual
Specified Amount, an amount equal to the difference shall be immediately
paid into the Build Illinois Fund from other moneys received by the
Department pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to this clause (b)
for any fiscal year in excess of the greater of (i) the Tax Act Amount or
(ii) the Annual Specified Amount for such fiscal year. The amounts payable
into the Build Illinois Fund under clause (b) of the first sentence in this
paragraph shall be payable only until such time as the aggregate amount on
deposit under each trust indenture securing Bonds issued and outstanding
pursuant to the Build Illinois Bond Act is sufficient, taking into account
any future investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the principal of,
premium, if any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and costs payable
with respect thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on the last
business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the aggregate of
moneys deposited in the Build Illinois Bond Account in the Build Illinois
Fund in such month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build Illinois
Bond Retirement and Interest Fund pursuant to Section 13 of the Build
Illinois Bond Act, an amount equal to such deficiency shall be immediately
paid from other moneys received by the Department pursuant to the Tax Acts
to the Build Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the first sentence
of this paragraph and shall reduce the amount otherwise payable for such
fiscal year pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited into the Build
Illinois Fund are subject to the pledge, claim and charge set forth in
Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund as provided in
the preceding paragraph or in any amendment thereto hereafter enacted, the
following specified monthly installment of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and Exposition
Authority provided under Section 8.25f of the State Finance Act, but not in
excess of sums designated as "Total Deposit", shall be deposited in the
aggregate from collections under Section 9 of the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
|
Fiscal Year | | Total Deposit | 1993 | | $0 | 1994 | | 53,000,000 | 1995 | | 58,000,000 | 1996 | | 61,000,000 | 1997 | | 64,000,000 | 1998 | | 68,000,000 | 1999 | | 71,000,000 | 2000 | | 75,000,000 | 2001 | | 80,000,000 | 2002 | | 93,000,000 | 2003 | | 99,000,000 | 2004 | | 103,000,000 | 2005 | | 108,000,000 | 2006 | | 113,000,000 | 2007 | | 119,000,000 | 2008 | | 126,000,000 | 2009 | | 132,000,000 | 2010 | | 139,000,000 | 2011 | | 146,000,000 | 2012 | | 153,000,000 | 2013 | | 161,000,000 | 2014 | | 170,000,000 | 2015 | | 179,000,000 | 2016 | | 189,000,000 | 2017 | | 199,000,000 | 2018 | | 210,000,000 | 2019 | | 221,000,000 | 2020 | | 233,000,000 | 2021 | | 300,000,000 | 2022 | | 300,000,000 | 2023 | | 300,000,000 | 2024 | | 300,000,000 | 2025 | | 300,000,000 | 2026 | | 300,000,000 | 2027 | | 375,000,000 | 2028 | | 375,000,000 | 2029 | | 375,000,000 | 2030 | | 375,000,000 | 2031 | | 375,000,000 | 2032 | | 375,000,000 | 2033 | | 375,000,000 | 2034 | | 375,000,000 | 2035 | | 375,000,000 | 2036 | | 450,000,000 | and | | |
each fiscal year | | |
thereafter that bonds | | |
are outstanding under | | |
Section 13.2 of the | | |
Metropolitan Pier and | | |
Exposition Authority Act, | | |
but not after fiscal year 2060. | | |
|
Beginning July 20, 1993 and in each month of each fiscal year thereafter,
one-eighth of the amount requested in the certificate of the Chairman of
the Metropolitan Pier and Exposition Authority for that fiscal year, less
the amount deposited into the McCormick Place Expansion Project Fund by the
State Treasurer in the respective month under subsection (g) of Section 13
of the Metropolitan Pier and Exposition Authority Act, plus cumulative
deficiencies in the deposits required under this Section for previous
months and years, shall be deposited into the McCormick Place Expansion
Project Fund, until the full amount requested for the fiscal year, but not
in excess of the amount specified above as "Total Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, for aviation fuel sold on or after December 1, 2019, the Department shall each month deposit into the Aviation Fuel Sales Tax Refund Fund an amount estimated by the Department to be required for refunds of the 80% portion of the tax on aviation fuel under this Act. The Department shall only deposit moneys into the Aviation Fuel Sales Tax Refund Fund under this paragraph for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick Place Expansion Project Fund pursuant to the preceding paragraphs
or in any amendments
thereto hereafter enacted, beginning July 1, 1993 and ending on September 30, 2013, the Department shall each
month pay into the Illinois Tax Increment Fund 0.27% of 80% of the net revenue
realized for the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any
amendments thereto hereafter enacted, beginning with the receipt of the first
report of taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy Infrastructure
Fund 80% of the net revenue realized from the 6.25% general rate on the
selling price of Illinois-mined coal that was sold to an eligible business.
For purposes of this paragraph, the term "eligible business" means a new
electric generating facility certified pursuant to Section 605-332 of the
Department of Commerce and Economic Opportunity
Law of the Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Energy Infrastructure Fund pursuant to the preceding paragraphs or in any amendments to this Section hereafter enacted, beginning on the first day of the first calendar month to occur on or after August 26, 2014 (the effective date of Public Act 98-1098), each month, from the collections made under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act, the Department shall pay into the Tax Compliance and Administration Fund, to be used, subject to appropriation, to fund additional auditors and compliance personnel at the Department of Revenue, an amount equal to 1/12 of 5% of 80% of the cash receipts collected during the preceding fiscal year by the Audit Bureau of the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and associated local occupation and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, beginning on July 1, 2018 the Department shall pay each month into the Downstate Public Transportation Fund the moneys required to be so paid under Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a public-private agreement between the public agency and private entity and completion of the civic build, beginning on July 1, 2023, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, the Department shall deposit the following specified deposits in the aggregate from collections under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, as required under Section 8.25g of the State Finance Act for distribution consistent with the Public-Private Partnership for Civic and Transit Infrastructure Project Act. The moneys received by the Department pursuant to this Act and required to be deposited into the Civic and Transit Infrastructure Fund are subject to the pledge, claim and charge set forth in Section 25-55 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act. As used in this paragraph, "civic build", "private entity", "public-private agreement", and "public agency" have the meanings provided in Section 25-10 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Deposit
2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$200,000,000
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$206,000,000
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$212,200,000
2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$218,500,000
2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$225,100,000
2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$288,700,000
2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$298,900,000
2031 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$309,300,000
2032 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$320,100,000
2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$331,200,000
2034 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$341,200,000
2035 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$351,400,000
2036 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$361,900,000
2037 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$372,800,000
2038 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$384,000,000
2039 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$395,500,000
2040 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$407,400,000
2041 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$419,600,000
2042 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$432,200,000
2043 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 16% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2022 and until July 1, 2023, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 32% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2023 and until July 1, 2024, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 48% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2024 and until July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 64% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning on July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 80% of the net revenue realized from the taxes imposed on motor fuel and gasohol. As used in this paragraph "motor fuel" has the meaning given to that term in Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the meaning given to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department pursuant to
this Act, 75% thereof shall be paid into the State treasury and 25% shall
be reserved in a special account and used only for the transfer to the
Common School Fund as part of the monthly transfer from the General Revenue
Fund in accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a taxpayer,
require the taxpayer to prepare and file with the Department on a form
prescribed by the Department within not less than 60 days after receipt
of the notice an annual information return for the tax year specified in
the notice. Such annual return to the Department shall include a
statement of gross receipts as shown by the retailer's last Federal income
tax return. If the total receipts of the business as reported in the
Federal income tax return do not agree with the gross receipts reported to
the Department of Revenue for the same period, the retailer shall attach
to his annual return a schedule showing a reconciliation of the 2
amounts and the reasons for the difference. The retailer's annual
return to the Department shall also disclose the cost of goods sold by
the retailer during the year covered by such return, opening and closing
inventories of such goods for such year, costs of goods used from stock
or taken from stock and given away by the retailer during such year,
payroll information of the retailer's business during such year and any
additional reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly or annual
returns filed by such retailer as provided for in this Section.
If the annual information return required by this Section is not
filed when and as required, the taxpayer shall be liable as follows:
(i) Until January 1, 1994, the taxpayer shall be
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| liable for a penalty equal to 1/6 of 1% of the tax due from such taxpayer under this Act during the period to be covered by the annual return for each month or fraction of a month until such return is filed as required, the penalty to be assessed and collected in the same manner as any other penalty provided for in this Act.
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|
(ii) On and after January 1, 1994, the taxpayer shall
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| be liable for a penalty as described in Section 3-4 of the Uniform Penalty and Interest Act.
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The chief executive officer, proprietor, owner or highest ranking
manager shall sign the annual return to certify the accuracy of the
information contained therein. Any person who willfully signs the
annual return containing false or inaccurate information shall be guilty
of perjury and punished accordingly. The annual return form prescribed
by the Department shall include a warning that the person signing the
return may be liable for perjury.
The provisions of this Section concerning the filing of an annual
information return do not apply to a retailer who is not required to
file an income tax return with the United States Government.
As soon as possible after the first day of each month, upon certification
of the Department of Revenue, the Comptroller shall order transferred and
the Treasurer shall transfer from the General Revenue Fund to the Motor
Fuel Tax Fund an amount equal to 1.7% of 80% of the net revenue realized
under this Act for the second preceding
month.
Beginning April 1, 2000, this transfer is no longer required
and shall not be made.
Net revenue realized for a month shall be the revenue collected by the
State pursuant to this Act, less the amount paid out during that month as
refunds to taxpayers for overpayment of liability.
For greater simplicity of administration, manufacturers, importers
and wholesalers whose products are sold at retail in Illinois by
numerous retailers, and who wish to do so, may assume the responsibility
for accounting and paying to the Department all tax accruing under this
Act with respect to such sales, if the retailers who are affected do not
make written objection to the Department to this arrangement.
Any person who promotes, organizes, provides retail selling space for
concessionaires or other types of sellers at the Illinois State Fair, DuQuoin
State Fair, county fairs, local fairs, art shows, flea markets and similar
exhibitions or events, including any transient merchant as defined by Section 2
of the Transient Merchant Act of 1987, is required to file a report with the
Department providing the name of the merchant's business, the name of the
person or persons engaged in merchant's business, the permanent address and
Illinois Retailers Occupation Tax Registration Number of the merchant, the
dates and location of the event and other reasonable information that the
Department may require. The report must be filed not later than the 20th day
of the month next following the month during which the event with retail sales
was held. Any person who fails to file a report required by this Section
commits a business offense and is subject to a fine not to exceed $250.
Any person engaged in the business of selling tangible personal
property at retail as a concessionaire or other type of seller at the
Illinois State Fair, county fairs, art shows, flea markets and similar
exhibitions or events, or any transient merchants, as defined by Section 2
of the Transient Merchant Act of 1987, may be required to make a daily report
of the amount of such sales to the Department and to make a daily payment of
the full amount of tax due. The Department shall impose this
requirement when it finds that there is a significant risk of loss of
revenue to the State at such an exhibition or event. Such a finding
shall be based on evidence that a substantial number of concessionaires
or other sellers who are not residents of Illinois will be engaging in
the business of selling tangible personal property at retail at the
exhibition or event, or other evidence of a significant risk of loss of revenue
to the State. The Department shall notify concessionaires and other sellers
affected by the imposition of this requirement. In the absence of
notification by the Department, the concessionaires and other sellers
shall file their returns as otherwise required in this Section.
(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60, Section 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff. 1-1-23; 103-9, eff. 6-7-23.)
(Text of Section from P.A. 103-154)
Sec. 3. Except as provided in this Section, on or before the twentieth
day of each calendar month, every person engaged in the business of
selling tangible personal property at retail in this State during the
preceding calendar month shall file a return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his
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| principal place of business and the address of the principal place of business (if that is a different address) from which he engages in the business of selling tangible personal property at retail in this State;
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3. Total amount of receipts received by him during
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| the preceding calendar month or quarter, as the case may be, from sales of tangible personal property, and from services furnished, by him during such preceding calendar month or quarter;
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|
4. Total amount received by him during the preceding
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| calendar month or quarter on charge and time sales of tangible personal property, and from services furnished, by him prior to the month or quarter for which the return is filed;
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5. Deductions allowed by law;
6. Gross receipts which were received by him during
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| the preceding calendar month or quarter and upon the basis of which the tax is imposed, including gross receipts on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) which were received during the preceding calendar month or quarter and upon which tax would have been due but for the 0% rate imposed under Public Act 102-700;
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7. The amount of credit provided in Section 2d of
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|
8. The amount of tax due, including the amount of tax
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| that would have been due on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) but for the 0% rate imposed under Public Act 102-700;
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9. The signature of the taxpayer; and
10. Such other reasonable information as the
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On and after January 1, 2018, except for returns required to be filed prior to January 1, 2023 for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, with respect to retailers whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act shall be filed electronically. On and after January 1, 2023, with respect to retailers whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act, including, but not limited to, returns for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, shall be filed electronically. Retailers who demonstrate that they do not have access to the Internet or demonstrate hardship in filing electronically may petition the Department to waive the electronic filing requirement.
If a taxpayer fails to sign a return within 30 days after the proper notice
and demand for signature by the Department, the return shall be considered
valid and any amount shown to be due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of prepaid tax issued
pursuant to Section 2e for which credit is claimed.
Prior to October 1, 2003, and on and after September 1, 2004 a retailer may accept a Manufacturer's Purchase
Credit
certification from a purchaser in satisfaction of Use Tax
as provided in Section 3-85 of the Use Tax Act if the purchaser provides the
appropriate documentation as required by Section 3-85
of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003 and on and after September 1, 2004 as provided
in
Section 3-85 of the Use Tax Act, may be used by that retailer to
satisfy Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts
subject to tax from a qualifying purchase. A Manufacturer's Purchase Credit
reported on any original or amended return
filed under
this Act after October 20, 2003 for reporting periods prior to September 1, 2004 shall be disallowed. Manufacturer's Purchase Credit reported on annual returns due on or after January 1, 2005 will be disallowed for periods prior to September 1, 2004. No Manufacturer's
Purchase Credit may be used after September 30, 2003 through August 31, 2004 to
satisfy any
tax liability imposed under this Act, including any audit liability.
The Department may require returns to be filed on a quarterly basis.
If so required, a return for each calendar quarter shall be filed on or
before the twentieth day of the calendar month following the end of such
calendar quarter. The taxpayer shall also file a return with the
Department for each of the first two months of each calendar quarter, on or
before the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business
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3. The total amount of taxable receipts received by
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4. The amount of credit provided in Section 2d of
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5. The amount of tax due; and
6. Such other reasonable information as the
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Every person engaged in the business of selling aviation fuel at retail in this State during the preceding calendar month shall, instead of reporting and paying tax as otherwise required by this Section, report and pay such tax on a separate aviation fuel tax return. The requirements related to the return shall be as otherwise provided in this Section. Notwithstanding any other provisions of this Act to the contrary, retailers selling aviation fuel shall file all aviation fuel tax returns and shall make all aviation fuel tax payments by electronic means in the manner and form required by the Department. For purposes of this Section, "aviation fuel" means jet fuel and aviation gasoline.
Beginning on October 1, 2003, any person who is not a licensed
distributor, importing distributor, or manufacturer, as defined in the Liquor
Control Act of 1934, but is engaged in the business of
selling, at retail, alcoholic liquor
shall file a statement with the Department of Revenue, in a format
and at a time prescribed by the Department, showing the total amount paid for
alcoholic liquor purchased during the preceding month and such other
information as is reasonably required by the Department.
The Department may adopt rules to require
that this statement be filed in an electronic or telephonic format. Such rules
may provide for exceptions from the filing requirements of this paragraph. For
the
purposes of this
paragraph, the term "alcoholic liquor" shall have the meaning prescribed in the
Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing distributor, and
manufacturer of alcoholic liquor as defined in the Liquor Control Act of 1934,
shall file a
statement with the Department of Revenue, no later than the 10th day of the
month for the
preceding month during which transactions occurred, by electronic means,
showing the
total amount of gross receipts from the sale of alcoholic liquor sold or
distributed during
the preceding month to purchasers; identifying the purchaser to whom it was
sold or
distributed; the purchaser's tax registration number; and such other
information
reasonably required by the Department. A distributor, importing distributor, or manufacturer of alcoholic liquor must personally deliver, mail, or provide by electronic means to each retailer listed on the monthly statement a report containing a cumulative total of that distributor's, importing distributor's, or manufacturer's total sales of alcoholic liquor to that retailer no later than the 10th day of the month for the preceding month during which the transaction occurred. The distributor, importing distributor, or manufacturer shall notify the retailer as to the method by which the distributor, importing distributor, or manufacturer will provide the sales information. If the retailer is unable to receive the sales information by electronic means, the distributor, importing distributor, or manufacturer shall furnish the sales information by personal delivery or by mail. For purposes of this paragraph, the term "electronic means" includes, but is not limited to, the use of a secure Internet website, e-mail, or facsimile.
If a total amount of less than $1 is payable, refundable or creditable,
such amount shall be disregarded if it is less than 50 cents and shall be
increased to $1 if it is 50 cents or more.
Notwithstanding any other provision of this Act to the contrary, retailers subject to tax on cannabis shall file all cannabis tax returns and shall make all cannabis tax payments by electronic means in the manner and form required by the Department.
Beginning October 1, 1993,
a taxpayer who has an average monthly tax liability of $150,000 or more shall
make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1, 1994, a taxpayer
who has an average monthly tax liability of $100,000 or more shall make all
payments required by rules of the Department by electronic funds transfer.
Beginning October 1, 1995, a taxpayer who has an average monthly tax liability
of $50,000 or more shall make all
payments required by rules of the Department by electronic funds transfer.
Beginning October 1, 2000, a taxpayer who has an annual tax liability of
$200,000 or more shall make all payments required by rules of the Department by
electronic funds transfer. The term "annual tax liability" shall be the sum of
the taxpayer's liabilities under this Act, and under all other State and local
occupation and use tax laws administered by the Department, for the immediately
preceding calendar year.
The term "average monthly tax liability" shall be the sum of the
taxpayer's liabilities under this
Act, and under all other State and local occupation and use tax
laws administered by the Department, for the immediately preceding calendar
year divided by 12.
Beginning on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the Department of
Revenue Law shall make all payments required by rules of the Department by
electronic funds transfer.
Before August 1 of each year beginning in 1993, the Department shall
notify all taxpayers required to make payments by electronic funds
transfer. All taxpayers
required to make payments by electronic funds transfer shall make those
payments for
a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic funds transfer may
make payments by electronic funds transfer with
the permission of the Department.
All taxpayers required to make payment by electronic funds transfer and
any taxpayers authorized to voluntarily make payments by electronic funds
transfer shall make those payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to effectuate a
program of electronic funds transfer and the requirements of this Section.
Any amount which is required to be shown or reported on any return or
other document under this Act shall, if such amount is not a whole-dollar
amount, be increased to the nearest whole-dollar amount in any case where
the fractional part of a dollar is 50 cents or more, and decreased to the
nearest whole-dollar amount where the fractional part of a dollar is less
than 50 cents.
If the retailer is otherwise required to file a monthly return and if the
retailer's average monthly tax liability to the Department does not exceed
$200, the Department may authorize his returns to be filed on a quarter
annual basis, with the return for January, February and March of a given
year being due by April 20 of such year; with the return for April, May and
June of a given year being due by July 20 of such year; with the return for
July, August and September of a given year being due by October 20 of such
year, and with the return for October, November and December of a given
year being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or quarterly
return and if the retailer's average monthly tax liability with the
Department does not exceed $50, the Department may authorize his returns to
be filed on an annual basis, with the return for a given year being due by
January 20 of the following year.
Such quarter annual and annual returns, as to form and substance,
shall be subject to the same requirements as monthly returns.
Notwithstanding any other provision in this Act concerning the time
within which a retailer may file his return, in the case of any retailer
who ceases to engage in a kind of business which makes him responsible
for filing returns under this Act, such retailer shall file a final
return under this Act with the Department not more than one month after
discontinuing such business.
Where the same person has more than one business registered with the
Department under separate registrations under this Act, such person may
not file each return that is due as a single return covering all such
registered businesses, but shall file separate returns for each such
registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with an agency of
this State, except as otherwise provided in this Section, every
retailer selling this kind of tangible personal property shall file,
with the Department, upon a form to be prescribed and supplied by the
Department, a separate return for each such item of tangible personal
property which the retailer sells, except that if, in the same
transaction, (i) a retailer of aircraft, watercraft, motor vehicles or
trailers transfers more than one aircraft, watercraft, motor
vehicle or trailer to another aircraft, watercraft, motor vehicle
retailer or trailer retailer for the purpose of resale
or (ii) a retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle, or trailer to a
purchaser for use as a qualifying rolling stock as provided in Section 2-5 of
this Act, then
that seller may report the transfer of all aircraft,
watercraft, motor vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting return form. For
purposes of this Section, "watercraft" means a Class 2, Class 3, or Class 4
watercraft as defined in Section 3-2 of the Boat Registration and Safety Act, a
personal watercraft, or any boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, every person who is engaged in the business of leasing or renting such items and who, in connection with such business, sells any such item to a retailer for the purpose of resale is, notwithstanding any other provision of this Section to the contrary, authorized to meet the return-filing requirement of this Act by reporting the transfer of all the aircraft, watercraft, motor vehicles, or trailers transferred for resale during a month to the Department on the same uniform invoice-transaction reporting return form on or before the 20th of the month following the month in which the transfer takes place. Notwithstanding any other provision of this Act to the contrary, all returns filed under this paragraph must be filed by electronic means in the manner and form as required by the Department.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with an agency of
this State, so that all
retailers' occupation tax liability is required to be reported, and is
reported, on such transaction reporting returns and who is not otherwise
required to file monthly or quarterly returns, need not file monthly or
quarterly returns. However, those retailers shall be required to
file returns on an annual basis.
The transaction reporting return, in the case of motor vehicles
or trailers that are required to be registered with an agency of this
State, shall
be the same document as the Uniform Invoice referred to in Section 5-402
of the Illinois Vehicle Code and must show the name and address of the
seller; the name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the traded-in
tangible personal property, if any, to the extent to which Section 1 of
this Act allows an exemption for the value of traded-in property; the
balance payable after deducting such trade-in allowance from the total
selling price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the purchaser by the
retailer on such transaction (or satisfactory evidence that such tax is
not due in that particular instance, if that is claimed to be the fact);
the place and date of the sale; a sufficient identification of the
property sold; such other information as is required in Section 5-402 of
the Illinois Vehicle Code, and such other information as the Department
may reasonably require.
The transaction reporting return in the case of watercraft
or aircraft must show
the name and address of the seller; the name and address of the
purchaser; the amount of the selling price including the amount allowed
by the retailer for traded-in property, if any; the amount allowed by
the retailer for the traded-in tangible personal property, if any, to
the extent to which Section 1 of this Act allows an exemption for the
value of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of tax due
from the retailer with respect to such transaction; the amount of tax
collected from the purchaser by the retailer on such transaction (or
satisfactory evidence that such tax is not due in that particular
instance, if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and such other
information as the Department may reasonably require.
Such transaction reporting return shall be filed not later than 20
days after the day of delivery of the item that is being sold, but may
be filed by the retailer at any time sooner than that if he chooses to
do so. The transaction reporting return and tax remittance or proof of
exemption from the Illinois use tax may be transmitted to the Department
by way of the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if titling or
registration is required) if the Department and such agency or State
officer determine that this procedure will expedite the processing of
applications for title or registration.
With each such transaction reporting return, the retailer shall remit
the proper amount of tax due (or shall submit satisfactory evidence that
the sale is not taxable if that is the case), to the Department or its
agents, whereupon the Department shall issue, in the purchaser's name, a
use tax receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with whom, he must
title or register the tangible personal property that is involved (if
titling or registration is required) in support of such purchaser's
application for an Illinois certificate or other evidence of title or
registration to such tangible personal property.
No retailer's failure or refusal to remit tax under this Act
precludes a user, who has paid the proper tax to the retailer, from
obtaining his certificate of title or other evidence of title or
registration (if titling or registration is required) upon satisfying
the Department that such user has paid the proper tax (if tax is due) to
the retailer. The Department shall adopt appropriate rules to carry out
the mandate of this paragraph.
If the user who would otherwise pay tax to the retailer wants the
transaction reporting return filed and the payment of the tax or proof
of exemption made to the Department before the retailer is willing to
take these actions and such user has not paid the tax to the retailer,
such user may certify to the fact of such delay by the retailer and may
(upon the Department being satisfied of the truth of such certification)
transmit the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to the
Department and obtain his tax receipt or exemption determination, in
which event the transaction reporting return and tax remittance (if a
tax payment was required) shall be credited by the Department to the
proper retailer's account with the Department, but without the 2.1% or 1.75%
discount provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the same
amount and in the same form in which it would be remitted if the tax had
been remitted to the Department by the retailer.
Refunds made by the seller during the preceding return period to
purchasers, on account of tangible personal property returned to the
seller, shall be allowed as a deduction under subdivision 5 of his monthly
or quarterly return, as the case may be, in case the
seller had theretofore included the receipts from the sale of such
tangible personal property in a return filed by him and had paid the tax
imposed by this Act with respect to such receipts.
Where the seller is a corporation, the return filed on behalf of such
corporation shall be signed by the president, vice-president, secretary
or treasurer or by the properly accredited agent of such corporation.
Where the seller is a limited liability company, the return filed on behalf
of the limited liability company shall be signed by a manager, member, or
properly accredited agent of the limited liability company.
Except as provided in this Section, the retailer filing the return
under this Section shall, at the time of filing such return, pay to the
Department the amount of tax imposed by this Act less a discount of 2.1%
prior to January 1, 1990 and 1.75% on and after January 1, 1990, or $5 per
calendar year, whichever is greater, which is allowed to
reimburse the retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying data to
the Department on request. On and after January 1, 2021, a certified service provider, as defined in the Leveling the Playing Field for Illinois Retail Act, filing the return under this Section on behalf of a remote retailer shall, at the time of such return, pay to the Department the amount of tax imposed by this Act less a discount of 1.75%. A remote retailer using a certified service provider to file a return on its behalf, as provided in the Leveling the Playing Field for Illinois Retail Act, is not eligible for the discount. When determining the discount allowed under this Section, retailers shall include the amount of tax that would have been due at the 1% rate but for the 0% rate imposed under Public Act 102-700. When determining the discount allowed under this Section, retailers shall include the amount of tax that would have been due at the 6.25% rate but for the 1.25% rate imposed on sales tax holiday items under Public Act 102-700. The discount under this Section is not allowed for the 1.25% portion of taxes paid on aviation fuel that is subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to Section 2d
of this Act shall be included in the amount on which such
2.1% or 1.75% discount is computed. In the case of retailers who report
and pay the tax on a transaction by transaction basis, as provided in this
Section, such discount shall be taken with each such tax remittance
instead of when such retailer files his periodic return. The discount allowed under this Section is allowed only for returns that are filed in the manner required by this Act. The Department may disallow the discount for retailers whose certificate of registration is revoked at the time the return is filed, but only if the Department's decision to revoke the certificate of registration has become final.
Before October 1, 2000, if the taxpayer's average monthly tax liability
to the Department
under this Act, the Use Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act, excluding any liability for prepaid sales
tax to be remitted in accordance with Section 2d of this Act, was
$10,000
or more during the preceding 4 complete calendar quarters, he shall file a
return with the Department each month by the 20th day of the month next
following the month during which such tax liability is incurred and shall
make payments to the Department on or before the 7th, 15th, 22nd and last
day of the month during which such liability is incurred.
On and after October 1, 2000, if the taxpayer's average monthly tax liability
to the Department under this Act, the Use Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act, excluding any liability for prepaid sales tax
to be remitted in accordance with Section 2d of this Act, was $20,000 or more
during the preceding 4 complete calendar quarters, he shall file a return with
the Department each month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make payment to the
Department on or before the 7th, 15th, 22nd and last day of the month during
which such liability is incurred.
If the month
during which such tax liability is incurred began prior to January 1, 1985,
each payment shall be in an amount equal to 1/4 of the taxpayer's actual
liability for the month or an amount set by the Department not to exceed
1/4 of the average monthly liability of the taxpayer to the Department for
the preceding 4 complete calendar quarters (excluding the month of highest
liability and the month of lowest liability in such 4 quarter period). If
the month during which such tax liability is incurred begins on or after
January 1, 1985 and prior to January 1, 1987, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar
month of the preceding year. If the month during which such tax
liability is incurred begins on or after January 1, 1987 and prior to
January 1, 1988, each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If the month
during which such tax liability is incurred begins on or after January 1,
1988, and prior to January 1, 1989, or begins on or after January 1, 1996, each
payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the month or 25% of
the taxpayer's liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on or after
January 1, 1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the
taxpayer's actual liability for the month or 25% of the taxpayer's
liability for the same calendar month of the preceding year or 100% of the
taxpayer's actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited against
the final tax liability of the taxpayer's return for that month. Before
October 1, 2000, once
applicable, the requirement of the making of quarter monthly payments to
the Department by taxpayers having an average monthly tax liability of
$10,000 or more as determined in the manner provided above
shall continue
until such taxpayer's average monthly liability to the Department during
the preceding 4 complete calendar quarters (excluding the month of highest
liability and the month of lowest liability) is less than
$9,000, or until
such taxpayer's average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar quarter period
is less than $10,000. However, if a taxpayer can show the
Department that
a substantial change in the taxpayer's business has occurred which causes
the taxpayer to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000 threshold
stated above, then
such taxpayer
may petition the Department for a change in such taxpayer's reporting
status. On and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by taxpayers having an
average monthly tax liability of $20,000 or more as determined in the manner
provided above shall continue until such taxpayer's average monthly liability
to the Department during the preceding 4 complete calendar quarters (excluding
the month of highest liability and the month of lowest liability) is less than
$19,000 or until such taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete calendar quarter
period is less than $20,000. However, if a taxpayer can show the Department
that a substantial change in the taxpayer's business has occurred which causes
the taxpayer to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000 threshold stated
above, then such taxpayer may petition the Department for a change in such
taxpayer's reporting status. The Department shall change such taxpayer's
reporting status
unless it finds that such change is seasonal in nature and not likely to be
long term. Quarter monthly payment status shall be determined under this paragraph as if the rate reduction to 0% in Public Act 102-700 on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) had not occurred. For quarter monthly payments due under this paragraph on or after July 1, 2023 and through June 30, 2024, "25% of the taxpayer's liability for the same calendar month of the preceding year" shall be determined as if the rate reduction to 0% in Public Act 102-700 had not occurred. Quarter monthly payment status shall be determined under this paragraph as if the rate reduction to 1.25% in Public Act 102-700 on sales tax holiday items had not occurred. For quarter monthly payments due on or after July 1, 2023 and through June 30, 2024, "25% of the taxpayer's liability for the same calendar month of the preceding year" shall be determined as if the rate reduction to 1.25% in Public Act 102-700 on sales tax holiday items had not occurred. If any such quarter monthly payment is not paid at the time or
in the amount required by this Section, then the taxpayer shall be liable for
penalties and interest on the difference
between the minimum amount due as a payment and the amount of such quarter
monthly payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the Department in
excess of the minimum payments previously due as provided in this Section.
The Department shall make reasonable rules and regulations to govern the
quarter monthly payment amount and quarter monthly payment dates for
taxpayers who file on other than a calendar monthly basis.
The provisions of this paragraph apply before October 1, 2001.
Without regard to whether a taxpayer is required to make quarter monthly
payments as specified above, any taxpayer who is required by Section 2d
of this Act to collect and remit prepaid taxes and has collected prepaid
taxes which average in excess of $25,000 per month during the preceding
2 complete calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such liability
is incurred. If the month during which such tax liability is incurred
began prior to September 1, 1985 (the effective date of Public Act 84-221), each
payment shall be in an amount not less than 22.5% of the taxpayer's actual
liability under Section 2d. If the month during which such tax liability
is incurred begins on or after January 1, 1986, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar month of the
preceding calendar year. If the month during which such tax liability is
incurred begins on or after January 1, 1987, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for the month or
26.25% of the taxpayer's liability for the same calendar month of the
preceding year. The amount of such quarter monthly payments shall be
credited against the final tax liability of the taxpayer's return for that
month filed under this Section or Section 2f, as the case may be. Once
applicable, the requirement of the making of quarter monthly payments to
the Department pursuant to this paragraph shall continue until such
taxpayer's average monthly prepaid tax collections during the preceding 2
complete calendar quarters is $25,000 or less. If any such quarter monthly
payment is not paid at the time or in the amount required, the taxpayer
shall be liable for penalties and interest on such difference, except
insofar as the taxpayer has previously made payments for that month in
excess of the minimum payments previously due.
The provisions of this paragraph apply on and after October 1, 2001.
Without regard to whether a taxpayer is required to make quarter monthly
payments as specified above, any taxpayer who is required by Section 2d of this
Act to collect and remit prepaid taxes and has collected prepaid taxes that
average in excess of $20,000 per month during the preceding 4 complete calendar
quarters shall file a return with the Department as required by Section 2f
and shall make payments to the Department on or before the 7th, 15th, 22nd and
last day of the month during which the liability is incurred. Each payment
shall be in an amount equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar month of the
preceding year. The amount of the quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for that month filed
under this Section or Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the Department
pursuant to this paragraph shall continue until the taxpayer's average monthly
prepaid tax collections during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of lowest liability) is
less than $19,000 or until such taxpayer's average monthly liability to the
Department as computed for each calendar quarter of the 4 preceding complete
calendar quarters is less than $20,000. If any such quarter monthly payment is
not paid at the time or in the amount required, the taxpayer shall be liable
for penalties and interest on such difference, except insofar as the taxpayer
has previously made payments for that month in excess of the minimum payments
previously due.
If any payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Use Tax Act, the Service
Occupation Tax Act and the Service Use Tax Act, as shown on an original
monthly return, the Department shall, if requested by the taxpayer, issue to
the taxpayer a credit memorandum no later than 30 days after the date of
payment. The credit evidenced by such credit memorandum may
be assigned by the taxpayer to a similar taxpayer under this Act, the
Use Tax Act, the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations to be prescribed by the
Department. If no such request is made, the taxpayer may credit such excess
payment against tax liability subsequently to be remitted to the Department
under this Act, the Use Tax Act, the Service Occupation Tax Act or the
Service Use Tax Act, in accordance with reasonable rules and regulations
prescribed by the Department. If the Department subsequently determined
that all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount shall be reduced
by 2.1% or 1.75% of the difference between the credit taken and that
actually due, and that taxpayer shall be liable for penalties and interest
on such difference.
If a retailer of motor fuel is entitled to a credit under Section 2d of
this Act which exceeds the taxpayer's liability to the Department under
this Act for the month for which the taxpayer is filing a return, the
Department shall issue the taxpayer a credit memorandum for the excess.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund, a special fund in the State treasury which
is hereby created, the net revenue realized for the preceding month from
the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall pay into
the County and Mass Transit District Fund, a special fund in the State
treasury which is hereby created, 4% of the net revenue realized
for the preceding month from the 6.25% general rate other than aviation fuel sold on or after December 1, 2019. This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
County and Mass Transit District Fund 20% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of motor fuel and
gasohol. If, in any month, the tax on sales tax holiday items, as defined in Section 2-8, is imposed at the rate of 1.25%, then the Department shall pay 20% of the net revenue realized for that month from the 1.25% rate on the selling price of sales tax holiday items into the County and Mass Transit District Fund.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund 16% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of
tangible personal property other than aviation fuel sold on or after December 1, 2019. This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each month the Department shall pay into the State Aviation Program Fund 20% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of aviation fuel, less an amount estimated by the Department to be required for refunds of the 20% portion of the tax on aviation fuel under this Act, which amount shall be deposited into the Aviation Fuel Sales Tax Refund Fund. The Department shall only pay moneys into the State Aviation Program Fund and the Aviation Fuel Sales Tax Refund Fund under this Act for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
Local Government Tax Fund 80% of the net revenue realized for the preceding
month from the 1.25% rate on the selling price of motor fuel and gasohol. If, in any month, the tax on sales tax holiday items, as defined in Section 2-8, is imposed at the rate of 1.25%, then the Department shall pay 80% of the net revenue realized for that month from the 1.25% rate on the selling price of sales tax holiday items into the Local Government Tax Fund.
Beginning October 1, 2009, each month the Department shall pay into the Capital Projects Fund an amount that is equal to an amount estimated by the Department to represent 80% of the net revenue realized for the preceding month from the sale of candy, grooming and hygiene products, and soft drinks that had been taxed at a rate of 1% prior to September 1, 2009 but that are now taxed at 6.25%.
Beginning July 1, 2011, each
month the Department shall pay into the Clean Air Act Permit Fund 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of sorbents used in Illinois in the process of sorbent injection as used to comply with the Environmental Protection Act or the federal Clean Air Act, but the total payment into the Clean Air Act Permit Fund under this Act and the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall pay into the Underground Storage Tank Fund from the proceeds collected under this Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act an amount equal to the average monthly deficit in the Underground Storage Tank Fund during the prior year, as certified annually by the Illinois Environmental Protection Agency, but the total payment into the Underground Storage Tank Fund under this Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act shall not exceed $18,000,000 in any State fiscal year. As used in this paragraph, the "average monthly deficit" shall be equal to the difference between the average monthly claims for payment by the fund and the average monthly revenues deposited into the fund, excluding payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, each month the Department shall deposit $500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department pursuant
to this Act, (a) 1.75% thereof shall be paid into the Build Illinois
Fund and (b) prior to July 1, 1989, 2.2% and on and after July 1, 1989,
3.8% thereof shall be paid into the Build Illinois Fund; provided, however,
that if in any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, as
the case may be, of the moneys received by the Department and required to
be paid into the Build Illinois Fund pursuant to this Act, Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called the "Tax
Acts" and such aggregate of 2.2% or 3.8%, as the case may be, of moneys
being hereinafter called the "Tax Act Amount", and (2) the amount
transferred to the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as hereinafter
defined), an amount equal to the difference shall be immediately paid into
the Build Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; the "Annual Specified Amount" means the amounts
specified below for fiscal years 1986 through 1993:
|
Fiscal Year | Annual Specified Amount | 1986 | $54,800,000 | 1987 | $76,650,000 | 1988 | $80,480,000 | 1989 | $88,510,000 | 1990 | $115,330,000 | 1991 | $145,470,000 | 1992 | $182,730,000 | 1993 | $206,520,000; |
|
and means the Certified Annual Debt Service Requirement (as defined in
Section 13 of the Build Illinois Bond Act) or the Tax Act Amount, whichever
is greater, for fiscal year 1994 and each fiscal year thereafter; and
further provided, that if on the last business day of any month the sum of
(1) the Tax Act Amount required to be deposited into the Build Illinois
Bond Account in the Build Illinois Fund during such month and (2) the
amount transferred to the Build Illinois Fund from the State and Local
Sales Tax Reform Fund shall have been less than 1/12 of the Annual
Specified Amount, an amount equal to the difference shall be immediately
paid into the Build Illinois Fund from other moneys received by the
Department pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to this clause (b)
for any fiscal year in excess of the greater of (i) the Tax Act Amount or
(ii) the Annual Specified Amount for such fiscal year. The amounts payable
into the Build Illinois Fund under clause (b) of the first sentence in this
paragraph shall be payable only until such time as the aggregate amount on
deposit under each trust indenture securing Bonds issued and outstanding
pursuant to the Build Illinois Bond Act is sufficient, taking into account
any future investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the principal of,
premium, if any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and costs payable
with respect thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on the last
business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the aggregate of
moneys deposited in the Build Illinois Bond Account in the Build Illinois
Fund in such month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build Illinois
Bond Retirement and Interest Fund pursuant to Section 13 of the Build
Illinois Bond Act, an amount equal to such deficiency shall be immediately
paid from other moneys received by the Department pursuant to the Tax Acts
to the Build Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the first sentence
of this paragraph and shall reduce the amount otherwise payable for such
fiscal year pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited into the Build
Illinois Fund are subject to the pledge, claim and charge set forth in
Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund as provided in
the preceding paragraph or in any amendment thereto hereafter enacted, the
following specified monthly installment of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and Exposition
Authority provided under Section 8.25f of the State Finance Act, but not in
excess of sums designated as "Total Deposit", shall be deposited in the
aggregate from collections under Section 9 of the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
|
Fiscal Year | | Total Deposit | 1993 | | $0 | 1994 | | 53,000,000 | 1995 | | 58,000,000 | 1996 | | 61,000,000 | 1997 | | 64,000,000 | 1998 | | 68,000,000 | 1999 | | 71,000,000 | 2000 | | 75,000,000 | 2001 | | 80,000,000 | 2002 | | 93,000,000 | 2003 | | 99,000,000 | 2004 | | 103,000,000 | 2005 | | 108,000,000 | 2006 | | 113,000,000 | 2007 | | 119,000,000 | 2008 | | 126,000,000 | 2009 | | 132,000,000 | 2010 | | 139,000,000 | 2011 | | 146,000,000 | 2012 | | 153,000,000 | 2013 | | 161,000,000 | 2014 | | 170,000,000 | 2015 | | 179,000,000 | 2016 | | 189,000,000 | 2017 | | 199,000,000 | 2018 | | 210,000,000 | 2019 | | 221,000,000 | 2020 | | 233,000,000 | 2021 | | 300,000,000 | 2022 | | 300,000,000 | 2023 | | 300,000,000 | 2024 | | 300,000,000 | 2025 | | 300,000,000 | 2026 | | 300,000,000 | 2027 | | 375,000,000 | 2028 | | 375,000,000 | 2029 | | 375,000,000 | 2030 | | 375,000,000 | 2031 | | 375,000,000 | 2032 | | 375,000,000 | 2033 | | 375,000,000 | 2034 | | 375,000,000 | 2035 | | 375,000,000 | 2036 | | 450,000,000 | and | | |
each fiscal year | | |
thereafter that bonds | | |
are outstanding under | | |
Section 13.2 of the | | |
Metropolitan Pier and | | |
Exposition Authority Act, | | |
but not after fiscal year 2060. | | |
|
Beginning July 20, 1993 and in each month of each fiscal year thereafter,
one-eighth of the amount requested in the certificate of the Chairman of
the Metropolitan Pier and Exposition Authority for that fiscal year, less
the amount deposited into the McCormick Place Expansion Project Fund by the
State Treasurer in the respective month under subsection (g) of Section 13
of the Metropolitan Pier and Exposition Authority Act, plus cumulative
deficiencies in the deposits required under this Section for previous
months and years, shall be deposited into the McCormick Place Expansion
Project Fund, until the full amount requested for the fiscal year, but not
in excess of the amount specified above as "Total Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, for aviation fuel sold on or after December 1, 2019, the Department shall each month deposit into the Aviation Fuel Sales Tax Refund Fund an amount estimated by the Department to be required for refunds of the 80% portion of the tax on aviation fuel under this Act. The Department shall only deposit moneys into the Aviation Fuel Sales Tax Refund Fund under this paragraph for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick Place Expansion Project Fund pursuant to the preceding paragraphs
or in any amendments
thereto hereafter enacted, beginning July 1, 1993 and ending on September 30, 2013, the Department shall each
month pay into the Illinois Tax Increment Fund 0.27% of 80% of the net revenue
realized for the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any
amendments thereto hereafter enacted, beginning with the receipt of the first
report of taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy Infrastructure
Fund 80% of the net revenue realized from the 6.25% general rate on the
selling price of Illinois-mined coal that was sold to an eligible business.
For purposes of this paragraph, the term "eligible business" means a new
electric generating facility certified pursuant to Section 605-332 of the
Department of Commerce and Economic Opportunity
Law of the Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Energy Infrastructure Fund pursuant to the preceding paragraphs or in any amendments to this Section hereafter enacted, beginning on the first day of the first calendar month to occur on or after August 26, 2014 (the effective date of Public Act 98-1098), each month, from the collections made under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act, the Department shall pay into the Tax Compliance and Administration Fund, to be used, subject to appropriation, to fund additional auditors and compliance personnel at the Department of Revenue, an amount equal to 1/12 of 5% of 80% of the cash receipts collected during the preceding fiscal year by the Audit Bureau of the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and associated local occupation and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, beginning on July 1, 2018 the Department shall pay each month into the Downstate Public Transportation Fund the moneys required to be so paid under Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a public-private agreement between the public agency and private entity and completion of the civic build, beginning on July 1, 2023, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, the Department shall deposit the following specified deposits in the aggregate from collections under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, as required under Section 8.25g of the State Finance Act for distribution consistent with the Public-Private Partnership for Civic and Transit Infrastructure Project Act. The moneys received by the Department pursuant to this Act and required to be deposited into the Civic and Transit Infrastructure Fund are subject to the pledge, claim and charge set forth in Section 25-55 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act. As used in this paragraph, "civic build", "private entity", "public-private agreement", and "public agency" have the meanings provided in Section 25-10 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Deposit
2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$200,000,000
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$206,000,000
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$212,200,000
2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$218,500,000
2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$225,100,000
2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$288,700,000
2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$298,900,000
2031 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$309,300,000
2032 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$320,100,000
2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$331,200,000
2034 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$341,200,000
2035 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$351,400,000
2036 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$361,900,000
2037 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$372,800,000
2038 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$384,000,000
2039 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$395,500,000
2040 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$407,400,000
2041 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$419,600,000
2042 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$432,200,000
2043 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 16% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2022 and until July 1, 2023, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 32% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2023 and until July 1, 2024, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 48% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2024 and until July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 64% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning on July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 80% of the net revenue realized from the taxes imposed on motor fuel and gasohol. As used in this paragraph "motor fuel" has the meaning given to that term in Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the meaning given to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department pursuant to
this Act, 75% thereof shall be paid into the State treasury and 25% shall
be reserved in a special account and used only for the transfer to the
Common School Fund as part of the monthly transfer from the General Revenue
Fund in accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a taxpayer,
require the taxpayer to prepare and file with the Department on a form
prescribed by the Department within not less than 60 days after receipt
of the notice an annual information return for the tax year specified in
the notice. Such annual return to the Department shall include a
statement of gross receipts as shown by the retailer's last Federal income
tax return. If the total receipts of the business as reported in the
Federal income tax return do not agree with the gross receipts reported to
the Department of Revenue for the same period, the retailer shall attach
to his annual return a schedule showing a reconciliation of the 2
amounts and the reasons for the difference. The retailer's annual
return to the Department shall also disclose the cost of goods sold by
the retailer during the year covered by such return, opening and closing
inventories of such goods for such year, costs of goods used from stock
or taken from stock and given away by the retailer during such year,
payroll information of the retailer's business during such year and any
additional reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly or annual
returns filed by such retailer as provided for in this Section.
If the annual information return required by this Section is not
filed when and as required, the taxpayer shall be liable as follows:
(i) Until January 1, 1994, the taxpayer shall be
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| liable for a penalty equal to 1/6 of 1% of the tax due from such taxpayer under this Act during the period to be covered by the annual return for each month or fraction of a month until such return is filed as required, the penalty to be assessed and collected in the same manner as any other penalty provided for in this Act.
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|
(ii) On and after January 1, 1994, the taxpayer shall
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| be liable for a penalty as described in Section 3-4 of the Uniform Penalty and Interest Act.
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|
The chief executive officer, proprietor, owner or highest ranking
manager shall sign the annual return to certify the accuracy of the
information contained therein. Any person who willfully signs the
annual return containing false or inaccurate information shall be guilty
of perjury and punished accordingly. The annual return form prescribed
by the Department shall include a warning that the person signing the
return may be liable for perjury.
The provisions of this Section concerning the filing of an annual
information return do not apply to a retailer who is not required to
file an income tax return with the United States Government.
As soon as possible after the first day of each month, upon certification
of the Department of Revenue, the Comptroller shall order transferred and
the Treasurer shall transfer from the General Revenue Fund to the Motor
Fuel Tax Fund an amount equal to 1.7% of 80% of the net revenue realized
under this Act for the second preceding
month.
Beginning April 1, 2000, this transfer is no longer required
and shall not be made.
Net revenue realized for a month shall be the revenue collected by the
State pursuant to this Act, less the amount paid out during that month as
refunds to taxpayers for overpayment of liability.
For greater simplicity of administration, manufacturers, importers
and wholesalers whose products are sold at retail in Illinois by
numerous retailers, and who wish to do so, may assume the responsibility
for accounting and paying to the Department all tax accruing under this
Act with respect to such sales, if the retailers who are affected do not
make written objection to the Department to this arrangement.
Any person who promotes, organizes, provides retail selling space for
concessionaires or other types of sellers at the Illinois State Fair, DuQuoin
State Fair, county fairs, local fairs, art shows, flea markets and similar
exhibitions or events, including any transient merchant as defined by Section 2
of the Transient Merchant Act of 1987, is required to file a report with the
Department providing the name of the merchant's business, the name of the
person or persons engaged in merchant's business, the permanent address and
Illinois Retailers Occupation Tax Registration Number of the merchant, the
dates and location of the event and other reasonable information that the
Department may require. The report must be filed not later than the 20th day
of the month next following the month during which the event with retail sales
was held. Any person who fails to file a report required by this Section
commits a business offense and is subject to a fine not to exceed $250.
Any person engaged in the business of selling tangible personal
property at retail as a concessionaire or other type of seller at the
Illinois State Fair, county fairs, art shows, flea markets and similar
exhibitions or events, or any transient merchants, as defined by Section 2
of the Transient Merchant Act of 1987, may be required to make a daily report
of the amount of such sales to the Department and to make a daily payment of
the full amount of tax due. The Department shall impose this
requirement when it finds that there is a significant risk of loss of
revenue to the State at such an exhibition or event. Such a finding
shall be based on evidence that a substantial number of concessionaires
or other sellers who are not residents of Illinois will be engaging in
the business of selling tangible personal property at retail at the
exhibition or event, or other evidence of a significant risk of loss of revenue
to the State. The Department shall notify concessionaires and other sellers
affected by the imposition of this requirement. In the absence of
notification by the Department, the concessionaires and other sellers
shall file their returns as otherwise required in this Section.
(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60, Section 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff. 1-1-23; 103-154, eff. 6-30-23.)
(Text of Section from P.A. 103-363)
Sec. 3. Except as provided in this Section, on or before the twentieth
day of each calendar month, every person engaged in the business of
selling tangible personal property at retail in this State during the
preceding calendar month shall file a return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his
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| principal place of business and the address of the principal place of business (if that is a different address) from which he engages in the business of selling tangible personal property at retail in this State;
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3. Total amount of receipts received by him during
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| the preceding calendar month or quarter, as the case may be, from sales of tangible personal property, and from services furnished, by him during such preceding calendar month or quarter;
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4. Total amount received by him during the preceding
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| calendar month or quarter on charge and time sales of tangible personal property, and from services furnished, by him prior to the month or quarter for which the return is filed;
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|
5. Deductions allowed by law;
6. Gross receipts which were received by him during
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| the preceding calendar month or quarter and upon the basis of which the tax is imposed, including gross receipts on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) which were received during the preceding calendar month or quarter and upon which tax would have been due but for the 0% rate imposed under Public Act 102-700;
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7. The amount of credit provided in Section 2d of
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|
8. The amount of tax due, including the amount of tax
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| that would have been due on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) but for the 0% rate imposed under Public Act 102-700;
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|
9. The signature of the taxpayer; and
10. Such other reasonable information as the
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|
On and after January 1, 2018, except for returns required to be filed prior to January 1, 2023 for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, with respect to retailers whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act shall be filed electronically. On and after January 1, 2023, with respect to retailers whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act, including, but not limited to, returns for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, shall be filed electronically. Retailers who demonstrate that they do not have access to the Internet or demonstrate hardship in filing electronically may petition the Department to waive the electronic filing requirement.
If a taxpayer fails to sign a return within 30 days after the proper notice
and demand for signature by the Department, the return shall be considered
valid and any amount shown to be due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of prepaid tax issued
pursuant to Section 2e for which credit is claimed.
Prior to October 1, 2003, and on and after September 1, 2004 a retailer may accept a Manufacturer's Purchase
Credit
certification from a purchaser in satisfaction of Use Tax
as provided in Section 3-85 of the Use Tax Act if the purchaser provides the
appropriate documentation as required by Section 3-85
of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003 and on and after September 1, 2004 as provided
in
Section 3-85 of the Use Tax Act, may be used by that retailer to
satisfy Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts
subject to tax from a qualifying purchase. A Manufacturer's Purchase Credit
reported on any original or amended return
filed under
this Act after October 20, 2003 for reporting periods prior to September 1, 2004 shall be disallowed. Manufacturer's Purchase Credit reported on annual returns due on or after January 1, 2005 will be disallowed for periods prior to September 1, 2004. No Manufacturer's
Purchase Credit may be used after September 30, 2003 through August 31, 2004 to
satisfy any
tax liability imposed under this Act, including any audit liability.
The Department may require returns to be filed on a quarterly basis.
If so required, a return for each calendar quarter shall be filed on or
before the twentieth day of the calendar month following the end of such
calendar quarter. The taxpayer shall also file a return with the
Department for each of the first two months of each calendar quarter, on or
before the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business
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| from which he engages in the business of selling tangible personal property at retail in this State;
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3. The total amount of taxable receipts received by
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| him during the preceding calendar month from sales of tangible personal property by him during such preceding calendar month, including receipts from charge and time sales, but less all deductions allowed by law;
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4. The amount of credit provided in Section 2d of
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5. The amount of tax due; and
6. Such other reasonable information as the
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Every person engaged in the business of selling aviation fuel at retail in this State during the preceding calendar month shall, instead of reporting and paying tax as otherwise required by this Section, report and pay such tax on a separate aviation fuel tax return. The requirements related to the return shall be as otherwise provided in this Section. Notwithstanding any other provisions of this Act to the contrary, retailers selling aviation fuel shall file all aviation fuel tax returns and shall make all aviation fuel tax payments by electronic means in the manner and form required by the Department. For purposes of this Section, "aviation fuel" means jet fuel and aviation gasoline.
Beginning on October 1, 2003, any person who is not a licensed
distributor, importing distributor, or manufacturer, as defined in the Liquor
Control Act of 1934, but is engaged in the business of
selling, at retail, alcoholic liquor
shall file a statement with the Department of Revenue, in a format
and at a time prescribed by the Department, showing the total amount paid for
alcoholic liquor purchased during the preceding month and such other
information as is reasonably required by the Department.
The Department may adopt rules to require
that this statement be filed in an electronic or telephonic format. Such rules
may provide for exceptions from the filing requirements of this paragraph. For
the
purposes of this
paragraph, the term "alcoholic liquor" shall have the meaning prescribed in the
Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing distributor, and
manufacturer of alcoholic liquor as defined in the Liquor Control Act of 1934,
shall file a
statement with the Department of Revenue, no later than the 10th day of the
month for the
preceding month during which transactions occurred, by electronic means,
showing the
total amount of gross receipts from the sale of alcoholic liquor sold or
distributed during
the preceding month to purchasers; identifying the purchaser to whom it was
sold or
distributed; the purchaser's tax registration number; and such other
information
reasonably required by the Department. A distributor, importing distributor, or manufacturer of alcoholic liquor must personally deliver, mail, or provide by electronic means to each retailer listed on the monthly statement a report containing a cumulative total of that distributor's, importing distributor's, or manufacturer's total sales of alcoholic liquor to that retailer no later than the 10th day of the month for the preceding month during which the transaction occurred. The distributor, importing distributor, or manufacturer shall notify the retailer as to the method by which the distributor, importing distributor, or manufacturer will provide the sales information. If the retailer is unable to receive the sales information by electronic means, the distributor, importing distributor, or manufacturer shall furnish the sales information by personal delivery or by mail. For purposes of this paragraph, the term "electronic means" includes, but is not limited to, the use of a secure Internet website, e-mail, or facsimile.
If a total amount of less than $1 is payable, refundable or creditable,
such amount shall be disregarded if it is less than 50 cents and shall be
increased to $1 if it is 50 cents or more.
Notwithstanding any other provision of this Act to the contrary, retailers subject to tax on cannabis shall file all cannabis tax returns and shall make all cannabis tax payments by electronic means in the manner and form required by the Department.
Beginning October 1, 1993,
a taxpayer who has an average monthly tax liability of $150,000 or more shall
make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1, 1994, a taxpayer
who has an average monthly tax liability of $100,000 or more shall make all
payments required by rules of the Department by electronic funds transfer.
Beginning October 1, 1995, a taxpayer who has an average monthly tax liability
of $50,000 or more shall make all
payments required by rules of the Department by electronic funds transfer.
Beginning October 1, 2000, a taxpayer who has an annual tax liability of
$200,000 or more shall make all payments required by rules of the Department by
electronic funds transfer. The term "annual tax liability" shall be the sum of
the taxpayer's liabilities under this Act, and under all other State and local
occupation and use tax laws administered by the Department, for the immediately
preceding calendar year.
The term "average monthly tax liability" shall be the sum of the
taxpayer's liabilities under this
Act, and under all other State and local occupation and use tax
laws administered by the Department, for the immediately preceding calendar
year divided by 12.
Beginning on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the Department of
Revenue Law shall make all payments required by rules of the Department by
electronic funds transfer.
Before August 1 of each year beginning in 1993, the Department shall
notify all taxpayers required to make payments by electronic funds
transfer. All taxpayers
required to make payments by electronic funds transfer shall make those
payments for
a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic funds transfer may
make payments by electronic funds transfer with
the permission of the Department.
All taxpayers required to make payment by electronic funds transfer and
any taxpayers authorized to voluntarily make payments by electronic funds
transfer shall make those payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to effectuate a
program of electronic funds transfer and the requirements of this Section.
Any amount which is required to be shown or reported on any return or
other document under this Act shall, if such amount is not a whole-dollar
amount, be increased to the nearest whole-dollar amount in any case where
the fractional part of a dollar is 50 cents or more, and decreased to the
nearest whole-dollar amount where the fractional part of a dollar is less
than 50 cents.
If the retailer is otherwise required to file a monthly return and if the
retailer's average monthly tax liability to the Department does not exceed
$200, the Department may authorize his returns to be filed on a quarter
annual basis, with the return for January, February and March of a given
year being due by April 20 of such year; with the return for April, May and
June of a given year being due by July 20 of such year; with the return for
July, August and September of a given year being due by October 20 of such
year, and with the return for October, November and December of a given
year being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or quarterly
return and if the retailer's average monthly tax liability with the
Department does not exceed $50, the Department may authorize his returns to
be filed on an annual basis, with the return for a given year being due by
January 20 of the following year.
Such quarter annual and annual returns, as to form and substance,
shall be subject to the same requirements as monthly returns.
Notwithstanding any other provision in this Act concerning the time
within which a retailer may file his return, in the case of any retailer
who ceases to engage in a kind of business which makes him responsible
for filing returns under this Act, such retailer shall file a final
return under this Act with the Department not more than one month after
discontinuing such business.
Where the same person has more than one business registered with the
Department under separate registrations under this Act, such person may
not file each return that is due as a single return covering all such
registered businesses, but shall file separate returns for each such
registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with an agency of
this State, except as otherwise provided in this Section, every
retailer selling this kind of tangible personal property shall file,
with the Department, upon a form to be prescribed and supplied by the
Department, a separate return for each such item of tangible personal
property which the retailer sells, except that if, in the same
transaction, (i) a retailer of aircraft, watercraft, motor vehicles or
trailers transfers more than one aircraft, watercraft, motor
vehicle or trailer to another aircraft, watercraft, motor vehicle
retailer or trailer retailer for the purpose of resale
or (ii) a retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle, or trailer to a
purchaser for use as a qualifying rolling stock as provided in Section 2-5 of
this Act, then
that seller may report the transfer of all aircraft,
watercraft, motor vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting return form. For
purposes of this Section, "watercraft" means a Class 2, Class 3, or Class 4
watercraft as defined in Section 3-2 of the Boat Registration and Safety Act, a
personal watercraft, or any boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, every person who is engaged in the business of leasing or renting such items and who, in connection with such business, sells any such item to a retailer for the purpose of resale is, notwithstanding any other provision of this Section to the contrary, authorized to meet the return-filing requirement of this Act by reporting the transfer of all the aircraft, watercraft, motor vehicles, or trailers transferred for resale during a month to the Department on the same uniform invoice-transaction reporting return form on or before the 20th of the month following the month in which the transfer takes place. Notwithstanding any other provision of this Act to the contrary, all returns filed under this paragraph must be filed by electronic means in the manner and form as required by the Department.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with an agency of
this State, so that all
retailers' occupation tax liability is required to be reported, and is
reported, on such transaction reporting returns and who is not otherwise
required to file monthly or quarterly returns, need not file monthly or
quarterly returns. However, those retailers shall be required to
file returns on an annual basis.
The transaction reporting return, in the case of motor vehicles
or trailers that are required to be registered with an agency of this
State, shall
be the same document as the Uniform Invoice referred to in Section 5-402
of the Illinois Vehicle Code and must show the name and address of the
seller; the name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the traded-in
tangible personal property, if any, to the extent to which Section 1 of
this Act allows an exemption for the value of traded-in property; the
balance payable after deducting such trade-in allowance from the total
selling price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the purchaser by the
retailer on such transaction (or satisfactory evidence that such tax is
not due in that particular instance, if that is claimed to be the fact);
the place and date of the sale; a sufficient identification of the
property sold; such other information as is required in Section 5-402 of
the Illinois Vehicle Code, and such other information as the Department
may reasonably require.
The transaction reporting return in the case of watercraft
or aircraft must show
the name and address of the seller; the name and address of the
purchaser; the amount of the selling price including the amount allowed
by the retailer for traded-in property, if any; the amount allowed by
the retailer for the traded-in tangible personal property, if any, to
the extent to which Section 1 of this Act allows an exemption for the
value of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of tax due
from the retailer with respect to such transaction; the amount of tax
collected from the purchaser by the retailer on such transaction (or
satisfactory evidence that such tax is not due in that particular
instance, if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and such other
information as the Department may reasonably require.
Such transaction reporting return shall be filed not later than 20
days after the day of delivery of the item that is being sold, but may
be filed by the retailer at any time sooner than that if he chooses to
do so. The transaction reporting return and tax remittance or proof of
exemption from the Illinois use tax may be transmitted to the Department
by way of the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if titling or
registration is required) if the Department and such agency or State
officer determine that this procedure will expedite the processing of
applications for title or registration.
With each such transaction reporting return, the retailer shall remit
the proper amount of tax due (or shall submit satisfactory evidence that
the sale is not taxable if that is the case), to the Department or its
agents, whereupon the Department shall issue, in the purchaser's name, a
use tax receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with whom, he must
title or register the tangible personal property that is involved (if
titling or registration is required) in support of such purchaser's
application for an Illinois certificate or other evidence of title or
registration to such tangible personal property.
No retailer's failure or refusal to remit tax under this Act
precludes a user, who has paid the proper tax to the retailer, from
obtaining his certificate of title or other evidence of title or
registration (if titling or registration is required) upon satisfying
the Department that such user has paid the proper tax (if tax is due) to
the retailer. The Department shall adopt appropriate rules to carry out
the mandate of this paragraph.
If the user who would otherwise pay tax to the retailer wants the
transaction reporting return filed and the payment of the tax or proof
of exemption made to the Department before the retailer is willing to
take these actions and such user has not paid the tax to the retailer,
such user may certify to the fact of such delay by the retailer and may
(upon the Department being satisfied of the truth of such certification)
transmit the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to the
Department and obtain his tax receipt or exemption determination, in
which event the transaction reporting return and tax remittance (if a
tax payment was required) shall be credited by the Department to the
proper retailer's account with the Department, but without the 2.1% or 1.75%
discount provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the same
amount and in the same form in which it would be remitted if the tax had
been remitted to the Department by the retailer.
Refunds made by the seller during the preceding return period to
purchasers, on account of tangible personal property returned to the
seller, shall be allowed as a deduction under subdivision 5 of his monthly
or quarterly return, as the case may be, in case the
seller had theretofore included the receipts from the sale of such
tangible personal property in a return filed by him and had paid the tax
imposed by this Act with respect to such receipts.
Where the seller is a corporation, the return filed on behalf of such
corporation shall be signed by the president, vice-president, secretary
or treasurer or by the properly accredited agent of such corporation.
Where the seller is a limited liability company, the return filed on behalf
of the limited liability company shall be signed by a manager, member, or
properly accredited agent of the limited liability company.
Except as provided in this Section, the retailer filing the return
under this Section shall, at the time of filing such return, pay to the
Department the amount of tax imposed by this Act less a discount of 2.1%
prior to January 1, 1990 and 1.75% on and after January 1, 1990, or $5 per
calendar year, whichever is greater, which is allowed to
reimburse the retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying data to
the Department on request. On and after January 1, 2021, a certified service provider, as defined in the Leveling the Playing Field for Illinois Retail Act, filing the return under this Section on behalf of a remote retailer shall, at the time of such return, pay to the Department the amount of tax imposed by this Act less a discount of 1.75%. A remote retailer using a certified service provider to file a return on its behalf, as provided in the Leveling the Playing Field for Illinois Retail Act, is not eligible for the discount. When determining the discount allowed under this Section, retailers shall include the amount of tax that would have been due at the 1% rate but for the 0% rate imposed under Public Act 102-700. When determining the discount allowed under this Section, retailers shall include the amount of tax that would have been due at the 6.25% rate but for the 1.25% rate imposed on sales tax holiday items under Public Act 102-700. The discount under this Section is not allowed for the 1.25% portion of taxes paid on aviation fuel that is subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to Section 2d
of this Act shall be included in the amount on which such
2.1% or 1.75% discount is computed. In the case of retailers who report
and pay the tax on a transaction by transaction basis, as provided in this
Section, such discount shall be taken with each such tax remittance
instead of when such retailer files his periodic return. The discount allowed under this Section is allowed only for returns that are filed in the manner required by this Act. The Department may disallow the discount for retailers whose certificate of registration is revoked at the time the return is filed, but only if the Department's decision to revoke the certificate of registration has become final.
Before October 1, 2000, if the taxpayer's average monthly tax liability
to the Department
under this Act, the Use Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act, excluding any liability for prepaid sales
tax to be remitted in accordance with Section 2d of this Act, was
$10,000
or more during the preceding 4 complete calendar quarters, he shall file a
return with the Department each month by the 20th day of the month next
following the month during which such tax liability is incurred and shall
make payments to the Department on or before the 7th, 15th, 22nd and last
day of the month during which such liability is incurred.
On and after October 1, 2000, if the taxpayer's average monthly tax liability
to the Department under this Act, the Use Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act, excluding any liability for prepaid sales tax
to be remitted in accordance with Section 2d of this Act, was $20,000 or more
during the preceding 4 complete calendar quarters, he shall file a return with
the Department each month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make payment to the
Department on or before the 7th, 15th, 22nd and last day of the month during
which such liability is incurred.
If the month
during which such tax liability is incurred began prior to January 1, 1985,
each payment shall be in an amount equal to 1/4 of the taxpayer's actual
liability for the month or an amount set by the Department not to exceed
1/4 of the average monthly liability of the taxpayer to the Department for
the preceding 4 complete calendar quarters (excluding the month of highest
liability and the month of lowest liability in such 4 quarter period). If
the month during which such tax liability is incurred begins on or after
January 1, 1985 and prior to January 1, 1987, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar
month of the preceding year. If the month during which such tax
liability is incurred begins on or after January 1, 1987 and prior to
January 1, 1988, each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If the month
during which such tax liability is incurred begins on or after January 1,
1988, and prior to January 1, 1989, or begins on or after January 1, 1996, each
payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the month or 25% of
the taxpayer's liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on or after
January 1, 1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the
taxpayer's actual liability for the month or 25% of the taxpayer's
liability for the same calendar month of the preceding year or 100% of the
taxpayer's actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited against
the final tax liability of the taxpayer's return for that month. Before
October 1, 2000, once
applicable, the requirement of the making of quarter monthly payments to
the Department by taxpayers having an average monthly tax liability of
$10,000 or more as determined in the manner provided above
shall continue
until such taxpayer's average monthly liability to the Department during
the preceding 4 complete calendar quarters (excluding the month of highest
liability and the month of lowest liability) is less than
$9,000, or until
such taxpayer's average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar quarter period
is less than $10,000. However, if a taxpayer can show the
Department that
a substantial change in the taxpayer's business has occurred which causes
the taxpayer to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000 threshold
stated above, then
such taxpayer
may petition the Department for a change in such taxpayer's reporting
status. On and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by taxpayers having an
average monthly tax liability of $20,000 or more as determined in the manner
provided above shall continue until such taxpayer's average monthly liability
to the Department during the preceding 4 complete calendar quarters (excluding
the month of highest liability and the month of lowest liability) is less than
$19,000 or until such taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete calendar quarter
period is less than $20,000. However, if a taxpayer can show the Department
that a substantial change in the taxpayer's business has occurred which causes
the taxpayer to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000 threshold stated
above, then such taxpayer may petition the Department for a change in such
taxpayer's reporting status. The Department shall change such taxpayer's
reporting status
unless it finds that such change is seasonal in nature and not likely to be
long term. Quarter monthly payment status shall be determined under this paragraph as if the rate reduction to 0% in Public Act 102-700 on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) had not occurred. For quarter monthly payments due under this paragraph on or after July 1, 2023 and through June 30, 2024, "25% of the taxpayer's liability for the same calendar month of the preceding year" shall be determined as if the rate reduction to 0% in Public Act 102-700 had not occurred. Quarter monthly payment status shall be determined under this paragraph as if the rate reduction to 1.25% in Public Act 102-700 on sales tax holiday items had not occurred. For quarter monthly payments due on or after July 1, 2023 and through June 30, 2024, "25% of the taxpayer's liability for the same calendar month of the preceding year" shall be determined as if the rate reduction to 1.25% in Public Act 102-700 on sales tax holiday items had not occurred. If any such quarter monthly payment is not paid at the time or
in the amount required by this Section, then the taxpayer shall be liable for
penalties and interest on the difference
between the minimum amount due as a payment and the amount of such quarter
monthly payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the Department in
excess of the minimum payments previously due as provided in this Section.
The Department shall make reasonable rules and regulations to govern the
quarter monthly payment amount and quarter monthly payment dates for
taxpayers who file on other than a calendar monthly basis.
The provisions of this paragraph apply before October 1, 2001.
Without regard to whether a taxpayer is required to make quarter monthly
payments as specified above, any taxpayer who is required by Section 2d
of this Act to collect and remit prepaid taxes and has collected prepaid
taxes which average in excess of $25,000 per month during the preceding
2 complete calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such liability
is incurred. If the month during which such tax liability is incurred
began prior to September 1, 1985 (the effective date of Public Act 84-221), each
payment shall be in an amount not less than 22.5% of the taxpayer's actual
liability under Section 2d. If the month during which such tax liability
is incurred begins on or after January 1, 1986, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar month of the
preceding calendar year. If the month during which such tax liability is
incurred begins on or after January 1, 1987, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for the month or
26.25% of the taxpayer's liability for the same calendar month of the
preceding year. The amount of such quarter monthly payments shall be
credited against the final tax liability of the taxpayer's return for that
month filed under this Section or Section 2f, as the case may be. Once
applicable, the requirement of the making of quarter monthly payments to
the Department pursuant to this paragraph shall continue until such
taxpayer's average monthly prepaid tax collections during the preceding 2
complete calendar quarters is $25,000 or less. If any such quarter monthly
payment is not paid at the time or in the amount required, the taxpayer
shall be liable for penalties and interest on such difference, except
insofar as the taxpayer has previously made payments for that month in
excess of the minimum payments previously due.
The provisions of this paragraph apply on and after October 1, 2001.
Without regard to whether a taxpayer is required to make quarter monthly
payments as specified above, any taxpayer who is required by Section 2d of this
Act to collect and remit prepaid taxes and has collected prepaid taxes that
average in excess of $20,000 per month during the preceding 4 complete calendar
quarters shall file a return with the Department as required by Section 2f
and shall make payments to the Department on or before the 7th, 15th, 22nd and
last day of the month during which the liability is incurred. Each payment
shall be in an amount equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar month of the
preceding year. The amount of the quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for that month filed
under this Section or Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the Department
pursuant to this paragraph shall continue until the taxpayer's average monthly
prepaid tax collections during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of lowest liability) is
less than $19,000 or until such taxpayer's average monthly liability to the
Department as computed for each calendar quarter of the 4 preceding complete
calendar quarters is less than $20,000. If any such quarter monthly payment is
not paid at the time or in the amount required, the taxpayer shall be liable
for penalties and interest on such difference, except insofar as the taxpayer
has previously made payments for that month in excess of the minimum payments
previously due.
If any payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Use Tax Act, the Service
Occupation Tax Act and the Service Use Tax Act, as shown on an original
monthly return, the Department shall, if requested by the taxpayer, issue to
the taxpayer a credit memorandum no later than 30 days after the date of
payment. The credit evidenced by such credit memorandum may
be assigned by the taxpayer to a similar taxpayer under this Act, the
Use Tax Act, the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations to be prescribed by the
Department. If no such request is made, the taxpayer may credit such excess
payment against tax liability subsequently to be remitted to the Department
under this Act, the Use Tax Act, the Service Occupation Tax Act or the
Service Use Tax Act, in accordance with reasonable rules and regulations
prescribed by the Department. If the Department subsequently determined
that all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount shall be reduced
by 2.1% or 1.75% of the difference between the credit taken and that
actually due, and that taxpayer shall be liable for penalties and interest
on such difference.
If a retailer of motor fuel is entitled to a credit under Section 2d of
this Act which exceeds the taxpayer's liability to the Department under
this Act for the month for which the taxpayer is filing a return, the
Department shall issue the taxpayer a credit memorandum for the excess.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund, a special fund in the State treasury which
is hereby created, the net revenue realized for the preceding month from
the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall pay into
the County and Mass Transit District Fund, a special fund in the State
treasury which is hereby created, 4% of the net revenue realized
for the preceding month from the 6.25% general rate other than aviation fuel sold on or after December 1, 2019. This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
County and Mass Transit District Fund 20% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of motor fuel and
gasohol. If, in any month, the tax on sales tax holiday items, as defined in Section 2-8, is imposed at the rate of 1.25%, then the Department shall pay 20% of the net revenue realized for that month from the 1.25% rate on the selling price of sales tax holiday items into the County and Mass Transit District Fund.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund 16% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of
tangible personal property other than aviation fuel sold on or after December 1, 2019. This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each month the Department shall pay into the State Aviation Program Fund 20% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of aviation fuel, less an amount estimated by the Department to be required for refunds of the 20% portion of the tax on aviation fuel under this Act, which amount shall be deposited into the Aviation Fuel Sales Tax Refund Fund. The Department shall only pay moneys into the State Aviation Program Fund and the Aviation Fuel Sales Tax Refund Fund under this Act for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
Local Government Tax Fund 80% of the net revenue realized for the preceding
month from the 1.25% rate on the selling price of motor fuel and gasohol. If, in any month, the tax on sales tax holiday items, as defined in Section 2-8, is imposed at the rate of 1.25%, then the Department shall pay 80% of the net revenue realized for that month from the 1.25% rate on the selling price of sales tax holiday items into the Local Government Tax Fund.
Beginning October 1, 2009, each month the Department shall pay into the Capital Projects Fund an amount that is equal to an amount estimated by the Department to represent 80% of the net revenue realized for the preceding month from the sale of candy, grooming and hygiene products, and soft drinks that had been taxed at a rate of 1% prior to September 1, 2009 but that are now taxed at 6.25%.
Beginning July 1, 2011, each
month the Department shall pay into the Clean Air Act Permit Fund 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of sorbents used in Illinois in the process of sorbent injection as used to comply with the Environmental Protection Act or the federal Clean Air Act, but the total payment into the Clean Air Act Permit Fund under this Act and the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall pay into the Underground Storage Tank Fund from the proceeds collected under this Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act an amount equal to the average monthly deficit in the Underground Storage Tank Fund during the prior year, as certified annually by the Illinois Environmental Protection Agency, but the total payment into the Underground Storage Tank Fund under this Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act shall not exceed $18,000,000 in any State fiscal year. As used in this paragraph, the "average monthly deficit" shall be equal to the difference between the average monthly claims for payment by the fund and the average monthly revenues deposited into the fund, excluding payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, each month the Department shall deposit $500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department pursuant
to this Act, (a) 1.75% thereof shall be paid into the Build Illinois
Fund and (b) prior to July 1, 1989, 2.2% and on and after July 1, 1989,
3.8% thereof shall be paid into the Build Illinois Fund; provided, however,
that if in any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, as
the case may be, of the moneys received by the Department and required to
be paid into the Build Illinois Fund pursuant to this Act, Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called the "Tax
Acts" and such aggregate of 2.2% or 3.8%, as the case may be, of moneys
being hereinafter called the "Tax Act Amount", and (2) the amount
transferred to the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as hereinafter
defined), an amount equal to the difference shall be immediately paid into
the Build Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; the "Annual Specified Amount" means the amounts
specified below for fiscal years 1986 through 1993:
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Fiscal Year | Annual Specified Amount | 1986 | $54,800,000 | 1987 | $76,650,000 | 1988 | $80,480,000 | 1989 | $88,510,000 | 1990 | $115,330,000 | 1991 | $145,470,000 | 1992 | $182,730,000 | 1993 | $206,520,000; |
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and means the Certified Annual Debt Service Requirement (as defined in
Section 13 of the Build Illinois Bond Act) or the Tax Act Amount, whichever
is greater, for fiscal year 1994 and each fiscal year thereafter; and
further provided, that if on the last business day of any month the sum of
(1) the Tax Act Amount required to be deposited into the Build Illinois
Bond Account in the Build Illinois Fund during such month and (2) the
amount transferred to the Build Illinois Fund from the State and Local
Sales Tax Reform Fund shall have been less than 1/12 of the Annual
Specified Amount, an amount equal to the difference shall be immediately
paid into the Build Illinois Fund from other moneys received by the
Department pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to this clause (b)
for any fiscal year in excess of the greater of (i) the Tax Act Amount or
(ii) the Annual Specified Amount for such fiscal year. The amounts payable
into the Build Illinois Fund under clause (b) of the first sentence in this
paragraph shall be payable only until such time as the aggregate amount on
deposit under each trust indenture securing Bonds issued and outstanding
pursuant to the Build Illinois Bond Act is sufficient, taking into account
any future investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the principal of,
premium, if any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and costs payable
with respect thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on the last
business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the aggregate of
moneys deposited in the Build Illinois Bond Account in the Build Illinois
Fund in such month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build Illinois
Bond Retirement and Interest Fund pursuant to Section 13 of the Build
Illinois Bond Act, an amount equal to such deficiency shall be immediately
paid from other moneys received by the Department pursuant to the Tax Acts
to the Build Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the first sentence
of this paragraph and shall reduce the amount otherwise payable for such
fiscal year pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited into the Build
Illinois Fund are subject to the pledge, claim and charge set forth in
Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund as provided in
the preceding paragraph or in any amendment thereto hereafter enacted, the
following specified monthly installment of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and Exposition
Authority provided under Section 8.25f of the State Finance Act, but not in
excess of sums designated as "Total Deposit", shall be deposited in the
aggregate from collections under Section 9 of the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
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Fiscal Year | | Total Deposit | 1993 | | $0 | 1994 | | 53,000,000 | 1995 | | 58,000,000 | 1996 | | 61,000,000 | 1997 | | 64,000,000 | 1998 | | 68,000,000 | 1999 | | 71,000,000 | 2000 | | 75,000,000 | 2001 | | 80,000,000 | 2002 | | 93,000,000 | 2003 | | 99,000,000 | 2004 | | 103,000,000 | 2005 | | 108,000,000 | 2006 | | 113,000,000 | 2007 | | 119,000,000 | 2008 | | 126,000,000 | 2009 | | 132,000,000 | 2010 | | 139,000,000 | 2011 | | 146,000,000 | 2012 | | 153,000,000 | 2013 | | 161,000,000 | 2014 | | 170,000,000 | 2015 | | 179,000,000 | 2016 | | 189,000,000 | 2017 | | 199,000,000 | 2018 | | 210,000,000 | 2019 | | 221,000,000 | 2020 | | 233,000,000 | 2021 | | 300,000,000 | 2022 | | 300,000,000 | 2023 | | 300,000,000 | 2024 | | 300,000,000 | 2025 | | 300,000,000 | 2026 | | 300,000,000 | 2027 | | 375,000,000 | 2028 | | 375,000,000 | 2029 | | 375,000,000 | 2030 | | 375,000,000 | 2031 | | 375,000,000 | 2032 | | 375,000,000 | 2033 | | 375,000,000 | 2034 | | 375,000,000 | 2035 | | 375,000,000 | 2036 | | 450,000,000 | and | | |
each fiscal year | | |
thereafter that bonds | | |
are outstanding under | | |
Section 13.2 of the | | |
Metropolitan Pier and | | |
Exposition Authority Act, | | |
but not after fiscal year 2060. | | |
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Beginning July 20, 1993 and in each month of each fiscal year thereafter,
one-eighth of the amount requested in the certificate of the Chairman of
the Metropolitan Pier and Exposition Authority for that fiscal year, less
the amount deposited into the McCormick Place Expansion Project Fund by the
State Treasurer in the respective month under subsection (g) of Section 13
of the Metropolitan Pier and Exposition Authority Act, plus cumulative
deficiencies in the deposits required under this Section for previous
months and years, shall be deposited into the McCormick Place Expansion
Project Fund, until the full amount requested for the fiscal year, but not
in excess of the amount specified above as "Total Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, for aviation fuel sold on or after December 1, 2019, the Department shall each month deposit into the Aviation Fuel Sales Tax Refund Fund an amount estimated by the Department to be required for refunds of the 80% portion of the tax on aviation fuel under this Act. The Department shall only deposit moneys into the Aviation Fuel Sales Tax Refund Fund under this paragraph for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick Place Expansion Project Fund pursuant to the preceding paragraphs
or in any amendments
thereto hereafter enacted, beginning July 1, 1993 and ending on September 30, 2013, the Department shall each
month pay into the Illinois Tax Increment Fund 0.27% of 80% of the net revenue
realized for the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, and the Illinois Tax Increment Fund pursuant to the preceding paragraphs or in any amendments to this Section hereafter enacted, beginning on the first day of the first calendar month to occur on or after August 26, 2014 (the effective date of Public Act 98-1098), each month, from the collections made under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act, the Department shall pay into the Tax Compliance and Administration Fund, to be used, subject to appropriation, to fund additional auditors and compliance personnel at the Department of Revenue, an amount equal to 1/12 of 5% of 80% of the cash receipts collected during the preceding fiscal year by the Audit Bureau of the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and associated local occupation and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, beginning on July 1, 2018 the Department shall pay each month into the Downstate Public Transportation Fund the moneys required to be so paid under Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a public-private agreement between the public agency and private entity and completion of the civic build, beginning on July 1, 2023, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, the Department shall deposit the following specified deposits in the aggregate from collections under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, as required under Section 8.25g of the State Finance Act for distribution consistent with the Public-Private Partnership for Civic and Transit Infrastructure Project Act. The moneys received by the Department pursuant to this Act and required to be deposited into the Civic and Transit Infrastructure Fund are subject to the pledge, claim and charge set forth in Section 25-55 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act. As used in this paragraph, "civic build", "private entity", "public-private agreement", and "public agency" have the meanings provided in Section 25-10 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Deposit
2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$200,000,000
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$206,000,000
2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$212,200,000
2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$218,500,000
2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$225,100,000
2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$288,700,000
2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$298,900,000
2031 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$309,300,000
2032 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$320,100,000
2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$331,200,000
2034 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$341,200,000
2035 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$351,400,000
2036 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$361,900,000
2037 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$372,800,000
2038 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$384,000,000
2039 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$395,500,000
2040 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$407,400,000
2041 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$419,600,000
2042 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$432,200,000
2043 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 16% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2022 and until July 1, 2023, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 32% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2023 and until July 1, 2024, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 48% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2024 and until July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 64% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning on July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 80% of the net revenue realized from the taxes imposed on motor fuel and gasohol. As used in this paragraph "motor fuel" has the meaning given to that term in Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the meaning given to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department pursuant to
this Act, 75% thereof shall be paid into the State treasury and 25% shall
be reserved in a special account and used only for the transfer to the
Common School Fund as part of the monthly transfer from the General Revenue
Fund in accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a taxpayer,
require the taxpayer to prepare and file with the Department on a form
prescribed by the Department within not less than 60 days after receipt
of the notice an annual information return for the tax year specified in
the notice. Such annual return to the Department shall include a
statement of gross receipts as shown by the retailer's last Federal income
tax return. If the total receipts of the business as reported in the
Federal income tax return do not agree with the gross receipts reported to
the Department of Revenue for the same period, the retailer shall attach
to his annual return a schedule showing a reconciliation of the 2
amounts and the reasons for the difference. The retailer's annual
return to the Department shall also disclose the cost of goods sold by
the retailer during the year covered by such return, opening and closing
inventories of such goods for such year, costs of goods used from stock
or taken from stock and given away by the retailer during such year,
payroll information of the retailer's business during such year and any
additional reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly or annual
returns filed by such retailer as provided for in this Section.
If the annual information return required by this Section is not
filed when and as required, the taxpayer shall be liable as follows:
(i) Until January 1, 1994, the taxpayer shall be
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| liable for a penalty equal to 1/6 of 1% of the tax due from such taxpayer under this Act during the period to be covered by the annual return for each month or fraction of a month until such return is filed as required, the penalty to be assessed and collected in the same manner as any other penalty provided for in this Act.
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(ii) On and after January 1, 1994, the taxpayer shall
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| be liable for a penalty as described in Section 3-4 of the Uniform Penalty and Interest Act.
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The chief executive officer, proprietor, owner or highest ranking
manager shall sign the annual return to certify the accuracy of the
information contained therein. Any person who willfully signs the
annual return containing false or inaccurate information shall be guilty
of perjury and punished accordingly. The annual return form prescribed
by the Department shall include a warning that the person signing the
return may be liable for perjury.
The provisions of this Section concerning the filing of an annual
information return do not apply to a retailer who is not required to
file an income tax return with the United States Government.
As soon as possible after the first day of each month, upon certification
of the Department of Revenue, the Comptroller shall order transferred and
the Treasurer shall transfer from the General Revenue Fund to the Motor
Fuel Tax Fund an amount equal to 1.7% of 80% of the net revenue realized
under this Act for the second preceding
month.
Beginning April 1, 2000, this transfer is no longer required
and shall not be made.
Net revenue realized for a month shall be the revenue collected by the
State pursuant to this Act, less the amount paid out during that month as
refunds to taxpayers for overpayment of liability.
For greater simplicity of administration, manufacturers, importers
and wholesalers whose products are sold at retail in Illinois by
numerous retailers, and who wish to do so, may assume the responsibility
for accounting and paying to the Department all tax accruing under this
Act with respect to such sales, if the retailers who are affected do not
make written objection to the Department to this arrangement.
Any person who promotes, organizes, provides retail selling space for
concessionaires or other types of sellers at the Illinois State Fair, DuQuoin
State Fair, county fairs, local fairs, art shows, flea markets and similar
exhibitions or events, including any transient merchant as defined by Section 2
of the Transient Merchant Act of 1987, is required to file a report with the
Department providing the name of the merchant's business, the name of the
person or persons engaged in merchant's business, the permanent address and
Illinois Retailers Occupation Tax Registration Number of the merchant, the
dates and location of the event and other reasonable information that the
Department may require. The report must be filed not later than the 20th day
of the month next following the month during which the event with retail sales
was held. Any person who fails to file a report required by this Section
commits a business offense and is subject to a fine not to exceed $250.
Any person engaged in the business of selling tangible personal
property at retail as a concessionaire or other type of seller at the
Illinois State Fair, county fairs, art shows, flea markets and similar
exhibitions or events, or any transient merchants, as defined by Section 2
of the Transient Merchant Act of 1987, may be required to make a daily report
of the amount of such sales to the Department and to make a daily payment of
the full amount of tax due. The Department shall impose this
requirement when it finds that there is a significant risk of loss of
revenue to the State at such an exhibition or event. Such a finding
shall be based on evidence that a substantial number of concessionaires
or other sellers who are not residents of Illinois will be engaging in
the business of selling tangible personal property at retail at the
exhibition or event, or other evidence of a significant risk of loss of revenue
to the State. The Department shall notify concessionaires and other sellers
affected by the imposition of this requirement. In the absence of
notification by the Department, the concessionaires and other sellers
shall file their returns as otherwise required in this Section.
(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60, Section 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff. 1-1-23; 103-363, eff. 7-28-23.)
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