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92_HB0004ham001
LRB9201889SMdvam01
1 AMENDMENT TO HOUSE BILL 4
2 AMENDMENT NO. . Amend House Bill 4 by replacing the
3 title with the following:
4 "AN ACT in relation to taxes."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "ARTICLE 5
8 Section 5-1. Short title. This Article may be cited as
9 the Elder Care Savings Fund Law, and references in this
10 Article to "this Act" means this Law.
11 Section 5-5. Declaration of purpose. It is declared (i)
12 that for the benefit of the people of the State of Illinois,
13 the conduct and increase of their commerce, the protection
14 and enhancement of their welfare, the development of
15 continued prosperity, and the improvement of their health and
16 living conditions, it is essential that this and future
17 generations be given the fullest opportunity to provide for
18 their long-term health care needs and (ii) that to achieve
19 these ends it is of the utmost importance that Illinois
20 residents be provided with investment alternatives to enhance
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1 their financial access to long-term health care. It is the
2 intent of this Act to create a savings fund that will provide
3 residents of the State of Illinois with an investment option
4 that will earn the highest available rate of return while
5 managing risk and maintaining liquidity.
6 Section 5-10. Definitions. In this Act:
7 (a) "Assisted living establishment" or "establishment"
8 means a home, building, residence, or any other place where
9 sleeping accommodations are provided for at least 3 unrelated
10 adults, at least 80% of whom are 55 years of age or older,
11 and where the following are provided consistent with the
12 purposes of this Act:
13 (1) Services consistent with a social model that is
14 based on the premise that the resident's unit in assisted
15 living and shared housing is his or her own home.
16 (2) Community-based residential care for persons
17 who need assistance with activities of daily living,
18 including personal, supportive, and intermittent
19 health-related services available 24 hours per day, if
20 needed, to meet the scheduled and unscheduled needs of a
21 resident.
22 (3) Counseling for health, social services, and
23 nutrition by licensed personnel or case coordination
24 units under the Department on Aging and the area agencies
25 on aging.
26 (4) Mandatory services, whether provided directly
27 by the establishment or by another entity arranged for by
28 the establishment, with the consent of the resident or
29 resident's representative.
30 (5) A physical environment that is a homelike
31 setting that includes the following elements, as well as
32 other elements established by the Department in
33 conjunction with the Assisted Living and Shared Housing
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1 Advisory Board: individual living units, each of which
2 must accommodate small kitchen appliances and contain
3 private bathing, washing, and toilet facilities, or
4 private washing and toilet facilities with a common
5 bathing room readily accessible to each resident. Units
6 must be maintained for single occupancy except in cases
7 in which 2 residents choose to share a unit. Sufficient
8 common space must exist to permit individual and group
9 activities.
10 "Assisted living establishment" or "establishment" does
11 not mean any of the following:
12 (1) A home, institution, or similar place operated
13 by the federal government or the State of Illinois.
14 (2) A long-term care facility licensed under the
15 Nursing Home Care Act. A long-term care facility may
16 convert distinct parts of the facility to assisted
17 living, however. If the long-term care facility elects
18 to do so, the facility shall retain the Certificate of
19 Need for its nursing beds that were converted.
20 (3) A hospital, sanitarium, or other institution,
21 the principal activity or business of which is the
22 diagnosis, care, and treatment of human illness and that
23 is required to be licensed under the Hospital Licensing
24 Act.
25 (4) A facility for child care as defined in the
26 Child Care Act of 1969.
27 (5) A community living facility as defined in the
28 Community Living Facilities Licensing Act.
29 (6) A nursing home or sanitarium operated solely by
30 and for persons who rely exclusively upon treatment by
31 spiritual means through prayer in accordance with the
32 creed or tenets of a well-recognized church or religious
33 denomination.
34 (7) A facility licensed by the Department of Human
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1 Services as a community-integrated living arrangement as
2 defined in the Community-Integrated Living Arrangements
3 Licensure and Certification Act.
4 (8) A supportive residence licensed under the
5 Supportive Residences Licensing Act.
6 (9) A life care facility as defined in the Life
7 Care Facilities Act; a life care facility may apply under
8 this Act to convert sections of the community to assisted
9 living.
10 (10) A free-standing hospice facility.
11 (11) A shared housing establishment.
12 (12) A supportive living facility as described in
13 Section 5-5.0la of the Illinois Public Aid Code.
14 (b) "Authority" means the Elder Care Trust Authority.
15 (c) "Elder Care Savings Fund" means the fund that is
16 created and administered by the State Treasurer to supplement
17 and enhance the investment opportunities otherwise available
18 to Illinois residents seeking to save money to pay the costs
19 of long-term health care.
20 Section 5-15. Elder Care Savings Fund.
21 (a) In order to provide investors with investment
22 alternatives to enhance their financial access to long-term
23 health care, and in furtherance of the public policy of this
24 Act, the State Treasurer may establish and administer an
25 Elder Care Savings Fund.
26 (b) The Treasurer, in administering the Elder Care
27 Savings Fund, may receive moneys from Illinois residents into
28 the fund and invest moneys within the fund on their behalf.
29 The Treasurer may invest the moneys constituting the Elder
30 Care Savings Fund in the same manner and in the same types of
31 investments and subject to the same limitations provided for
32 the investment of moneys in the State treasury.
33 The Treasurer shall develop, publish, and implement an
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1 investment policy covering the management of moneys in the
2 Elder Care Savings Fund. The policy shall be published at
3 least once each year in at least one newspaper of general
4 circulation in both Springfield and Chicago, and each year as
5 part of the audit of the Elder Care Savings Fund by the
6 Auditor General, which shall be distributed to all
7 participants in the fund. The Treasurer shall notify all
8 participants in writing, and the Treasurer shall publish in a
9 newspaper of general circulation in both Chicago and
10 Springfield any changes to the previously published
11 investment policy at least 30 calendar days before
12 implementing the policy. Any investment policy adopted by
13 the Treasurer shall be reviewed, and updated if necessary,
14 within 90 days following the installation of a new Treasurer.
15 (c) A portion of the administrative expenses of the
16 Elder Care Savings Fund shall be paid from the earnings of
17 the fund. No more than 0.005% of the assets of the fund may
18 be used to pay administrative expenses. The Treasurer must
19 seek an appropriation for any administrative expenses that
20 are not paid from the earnings of the fund. As soon as the
21 Elder Care Savings Fund reaches an asset level that equals or
22 exceeds $200,000,000, the administration expenses of the fund
23 shall be paid solely from its earnings. Interest earnings in
24 excess of administrative expenses shall be credited or paid
25 monthly to the several participants in the fund in a manner
26 that equitably reflects the differing amounts of their
27 respective investments in the fund and the differing periods
28 of time for which the amounts were in the custody of the
29 fund.
30 (d) The Treasurer shall adopt rules as he or she deems
31 necessary for the efficient administration of the Elder Care
32 Savings Fund, including specification of minimum and maximum
33 amounts that may be deposited, minimum and maximum periods of
34 time for which deposits may be retained in the fund, and
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1 conditions under which penalties will be assessed for refunds
2 of earnings that are not used for long-term health care
3 expenses defined in Section 5-10 of this Act.
4 (e) Upon creating an Elder Care Savings Fund the State
5 Treasurer shall give bond with 2 or more sufficient sureties,
6 payable to and for the benefit of the participants in the
7 Elder Care Savings Fund, in the penal sum of $500,000,
8 conditioned upon the faithful discharge of his or her duties
9 in relation to the fund.
10 Section 5-20. Exemption from taxation. As provided in
11 this Act, the investment in the Elder Care Savings Fund is in
12 all respects for the benefit of the People of the State of
13 Illinois, the conduct and increase of their commerce, the
14 protection and enhancement of their welfare, the development
15 of continued prosperity, and the improvement of their health
16 and living conditions and is for public purposes. In
17 consideration of those facts, income derived from investments
18 in the Elder Care Savings Fund and financial incentives
19 received under the grant program described in Section 5-25 of
20 this Act shall be free from all taxation by the State or its
21 political subdivisions, except for estate, transfer, and
22 inheritance taxes.
23 Section 5-25. Grant program.
24 (a) The Governor and the Director of the Bureau of the
25 Budget shall provide for a grant program of additional
26 financial incentives to be provided to participants in the
27 Elder Care Savings Program to encourage the use of the Elder
28 Care Savings Fund and the income derived from the fund for
29 one or more of the following purposes:
30 (1) Care in a facility licensed under the Nursing
31 Home Care Act.
32 (2) Home health nursing services or home health
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1 aide services provided by a home health agency licensed
2 under the Home Health Agency Licensing Act.
3 (3) Respite care as defined in the Respite Program
4 Act.
5 (4) Custodial care services.
6 (5) Care in a hospice licensed under the Hospice
7 Program Licensing Act.
8 (6) Long-term health care services for the aged,
9 the disabled, or persons diagnosed as infected with HIV
10 or having AIDS or a related condition. These services
11 include, without limitation, chore-housekeeping services,
12 a personal care attendant, adult day care, assistive
13 equipment, home renovation, home-delivered meals, and
14 emergency response systems. As used in this paragraph,
15 "AIDS" means acquired immunodeficiency syndrome; "HIV"
16 means the Human Immunodeficiency Virus or any other
17 identified causative agent of AIDS.
18 (7) Care in an assisted living establishment.
19 (b) The grant program of financial incentives shall be
20 administered by the State Treasurer pursuant to
21 administrative rules adopted by the Treasurer. The financial
22 incentives shall be in forms determined by the Governor and
23 the Director of the Bureau of the Budget and may include,
24 among others, supplemental payments to the participants in
25 the Elder Care Savings Fund to be applied to costs of care or
26 services specified in items (1) through (6) of subsection
27 (a). The Treasurer may establish, by rule, administrative
28 procedures and eligibility criteria for the grant program;
29 those rules must be consistent with the purposes of this Act.
30 The Treasurer may require participants in the Elder Care
31 Savings Fund, providers of long-term health care services,
32 and other necessary parties to assist in determining
33 eligibility for financial incentives under the grant program.
34 (c) All grants shall be subject to annual appropriation
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1 of moneys for that purpose by the General Assembly.
2 Financial incentives shall be provided only if, in the sole
3 judgment of the Director of the Bureau of the Budget, the
4 total incentives offered in a given year will not exceed the
5 balance of the Elder Care Savings Fund on the day the
6 incentives are offered by more than 0.5%.
7 Section 5-30. Education program. The State Treasurer, in
8 cooperation with the Department on Aging and area agencies on
9 aging, shall develop and implement an education program and
10 marketing strategies designed to inform residents of this
11 State about the options available for financing long-term
12 health care and the need to accumulate the financial
13 resources necessary to pay for that care. The Treasurer
14 shall report to the General Assembly on the program developed
15 and its operation before May 1, 2002. The Treasurer shall
16 adopt rules with respect to his or her powers and duties
17 under this Act.
18 Section 5-35. Elder Care Trust Authority.
19 (a) The Elder Care Trust Authority is created. The
20 Authority shall consist of 11 members, 7 of whom shall be
21 appointed as follows: the Speaker and Minority Leader of the
22 House of Representatives and the President and Minority
23 Leader of the Senate shall each appoint one member, and the
24 Governor shall appoint 3 members. The State Treasurer, the
25 Director of the Bureau of the Budget, the Director of Public
26 Health, and the Director of the Illinois Economic and Fiscal
27 Commission, or their respective designees, shall each be a
28 member ex officio. The Governor and legislative leaders
29 shall give consideration to selecting members that include
30 representatives from the following categories: (i) a
31 director, officer, or employee of an entity that provides
32 long-term health care services; (ii) a person having a
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1 favorable reputation for skill, knowledge, and experience in
2 the field of portfolio management; and (iii) a person
3 experienced in and having a favorable reputation for skill,
4 knowledge, and experience in the long-term health care
5 savings field.
6 The State Treasurer or the Treasurer's designee shall
7 serve as the chairperson of the Authority.
8 The appointed members of the Authority first appointed
9 shall serve for terms expiring on June 30 in 2002, 2003,
10 2004, 2005, 2006, 2007, and 2008 respectively, or until their
11 respective successors have been appointed and have qualified.
12 The initial term of each of those members shall be determined
13 by lot. Upon the expiration of the term of any member, the
14 member's successor shall be appointed for a term of 6 years
15 and until his or her successor has been appointed and has
16 qualified.
17 Any vacancy shall be filled in the manner of the original
18 appointment for the remainder of the unexpired term.
19 Any member of the Authority may be removed by the
20 appointing authority for misfeasance, malfeasance, or wilful
21 neglect of duty or other cause after notice and a public
22 hearing, unless that notice and hearing are expressly waived
23 by the member in writing.
24 Members are entitled to be compensated from moneys
25 appropriated to the State Treasurer for their reasonable
26 expenses actually incurred in performing their duties.
27 Staff assistance shall be provided to the Authority by
28 the State Treasurer.
29 The Authority shall meet at least once each year.
30 (b) The Authority has the following responsibilities:
31 (1) To make recommendations to the Elder Care
32 Savings Fund staff regarding the marketing of the fund to
33 ensure the use of the fund by participants throughout the
34 State for long-term health care purposes.
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1 (2) To advise the Elder Care Savings Fund staff on
2 an effective advertising campaign to inform the general
3 public about the fund and its availability.
4 (3) To advise the Elder Care Savings Fund staff
5 regarding the investment portfolio of the fund.
6 (4) After the creation of the Elder Care Savings
7 Fund, to assess the effectiveness of the program and
8 recommend constructive changes to the Bureau of the
9 Budget.
10 (5) To make recommendations to the General Assembly
11 regarding statutory changes that the Authority deems
12 necessary or desirable.
13 Section 5-99. Effective date. This Act takes effect
14 upon becoming law.
15 ARTICLE 10
16 Section 10-1. Short title. This Article may be cited as
17 the Automobile Leasing Occupation and Use Tax Law, and
18 references in this Article to "this Act" means this Law.
19 Section 10-5. Definitions. As used in this Act:
20 "Automobile" means any motor vehicle of the first
21 division, a motor vehicle of the second division which is a
22 self-contained motor vehicle designed or permanently
23 converted to provide living quarters for recreational,
24 camping or travel use, with direct walk through access to the
25 living quarters from the driver's seat, or a motor vehicle of
26 the second division which is of the van configuration
27 designed for the transportation of not less than 7 nor more
28 than 16 passengers, as defined in Section 1-146 of the
29 Illinois Vehicle Code.
30 "Department" means the Department of Revenue.
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1 "Person" means any natural individual, firm, partnership,
2 association, joint stock company, joint venture, public or
3 private corporation, or a receiver, executor, trustee,
4 conservator, or other representatives appointed by order of
5 any court.
6 "Leasing" means any transfer of the possession or right
7 to possession of an automobile to a user for a valuable
8 consideration for a period of more than 1 year.
9 "Lessor" means any person, firm, corporation, or
10 association engaged in the business of leasing automobiles to
11 users. For this purpose, the objective of making a profit is
12 not necessary to make the leasing activity a business.
13 "Lessee" means any user to whom the possession, or the
14 right to possession, of an automobile is transferred for a
15 valuable consideration for a period more than one year which
16 is paid by such lessee or by someone else.
17 "Gross receipts" means the total leasing price for the
18 lease of an automobile. In the case of lease transactions in
19 which the consideration is paid to the lessor on an
20 installment basis, the amounts of such payments shall be
21 included by the lessor in gross receipts only as and when
22 payments are received by the lessor.
23 "Leasing price" means the consideration for leasing an
24 automobile valued in money, whether received in money or
25 otherwise, including cash, credits, property and services,
26 and shall be determined without any deduction on account of
27 the cost of the property leased, the cost of materials used,
28 labor or service cost or any other expense whatsoever, but
29 does not include charges that are added by lessors on account
30 of the lessor's tax liability under this Act, or on account
31 of the lessor's duty to collect, from the lessee, the tax
32 that is imposed by Section 10-20 of this Act. The phrase
33 "leasing price" does not include the residual value of the
34 automobile or any separately stated charge on the lessee's
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1 bill for insurance.
2 "Maintaining a place of business in this State" means
3 having or maintaining within this State, directly or by a
4 subsidiary, an office, repair facilities, distribution house,
5 sales house, warehouse, or other place of business, or any
6 agent, or other representative, operating within this State,
7 irrespective of whether the place of business or agent or
8 other representative is located here permanently or
9 temporarily.
10 "Residual value" means the estimated value of the vehicle
11 at the end of the scheduled lease term, used by the lessor in
12 determining the base lease payment, as established by the
13 lessor at the time the lessor and lessee enter into the
14 lease.
15 Section 10-10. Imposition of occupation tax. A tax is
16 imposed upon persons engaged in this State in the business of
17 leasing automobiles in Illinois at the rate of 5% of the
18 gross receipts received from such business. The tax herein
19 imposed does not apply to the leasing of automobiles to any
20 governmental body, nor to any corporation, society,
21 association, foundation or institution organized and operated
22 exclusively for charitable, religious or educational
23 purposes, nor to any not for profit corporation, society,
24 association, foundation, institution or organization which
25 has no compensated officers or employees and which is
26 organized and operated primarily for the recreation of
27 persons 55 years of age or older. Beginning July 1, 2001
28 through June 30, 2002, each month the Department shall pay
29 into the Tax Compliance and Administration Fund 3% of the
30 revenue realized from the tax imposed by this Section, and
31 the remaining such revenue shall be paid as provided for in
32 Section 3 of the Retailers' Occupation Tax Act. Beginning
33 July 1, 2002 and each month thereafter, the Department shall
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1 pay into the Tax Compliance and Administration Fund 1% of the
2 revenue realized from the tax imposed by this Section, and
3 the remaining such revenue shall be paid as provided for in
4 Section 3 of the Retailers' Occupation Tax Act.
5 The Department shall have full power to administer and
6 enforce this Section, to collect all taxes and penalties due
7 hereunder, to dispose of taxes and penalties so collected in
8 the manner hereinafter provided, and to determine all rights
9 to credit memoranda, arising on account of the erroneous
10 payment of tax or penalty hereunder. In the administration
11 of, and compliance with, this Section, the Department and
12 persons who are subject to this Section shall have the same
13 rights, remedies, privileges, immunities, powers and duties,
14 and be subject to the same conditions, restrictions,
15 limitation, penalties and definitions of terms, and employ
16 the same modes of procedure, as are prescribed in Sections 1,
17 1a, 2 through 2-65 (in respect to all provisions therein
18 other than the State rate of tax), 2a, 2b, 2c, 3 (except
19 provisions relating to transaction returns and quarter
20 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j,
21 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12 and 13 of the
22 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
23 Penalty and Interest Act as fully as if those provisions were
24 set forth herein. For purposes of this Section, references
25 in such incorporated Sections of the Retailers' Occupation
26 Tax Act to retailers, sellers or persons engaged in the
27 business of selling tangible personal property means persons
28 engaged in the leasing of automobiles under leases subject to
29 this Act.
30 Section 10-15. Registration. Every person engaged in
31 this State in the business of leasing automobiles shall apply
32 to the Department (upon a form prescribed and furnished by
33 the Department) for a certificate of registration under this
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1 Act. The certificate of registration that is issued by the
2 Department to a retailer under the Retailers' Occupation Tax
3 Act shall permit such lessor to engage in a business that is
4 taxable under this Section without registering separately
5 with the Department.
6 Section 10-20. Imposition of use tax. A tax is imposed
7 upon the privilege of using in this State, an automobile
8 which is leased from a lessor. Such tax is at the rate of 5%
9 of the leasing price of such automobile paid to the lessor
10 under any lease agreement. The tax herein imposed shall not
11 apply to any governmental body, nor to any corporation,
12 society, association, foundation or institution, organized
13 and operated exclusively for charitable, religious or
14 educational purposes, nor to any not for profit corporation,
15 society, association, foundation, institution or organization
16 which has no compensated officers or employees and which is
17 organized and operated primarily for the recreation of
18 persons 55 years of age or older, when using tangible
19 personal property as a lessee. Beginning July 1, 2001
20 through June 30, 2002, each month the Department shall pay
21 into the Tax Compliance and Administration Fund 3% of the
22 revenue realized from the tax imposed by this Section, and
23 the remaining such revenue shall be paid as provided for in
24 Section 9 of the Use Tax Act. Beginning July 1, 2002 and
25 each month thereafter, the Department shall pay into the Tax
26 Compliance and Administration Fund 1% of the revenue realized
27 from the tax imposed by this Section, and the remaining such
28 revenue shall be paid as provided for in Section 9 of the Use
29 Tax Act.
30 The Department shall have full power to administer and
31 enforce this Section; to collect all taxes, penalties and
32 interest due hereunder; to dispose of taxes, penalties and
33 interest so collected in the manner hereinafter provided, and
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1 to determine all rights to credit memoranda or refunds
2 arising on account of the erroneous payment of tax, penalty
3 or interest hereunder. In the administration of, and
4 compliance with, this Section, the Department and persons who
5 are subject to this Section shall have the same rights,
6 remedies, privileges, immunities, powers and duties, and be
7 subject to the same conditions, restrictions, limitations,
8 penalties and definitions of terms, and employ the same modes
9 of procedure, as are prescribed in Sections 2, 3 through
10 3-80, 4, 6, 7, 8, 9 (except provisions relating to
11 transaction returns and quarter monthly payments), 10, 11,
12 12, 12a, 12b, 13, 14, 15, 19, 20, 21 and 22 of the Use Tax
13 Act, and are not inconsistent with this Section, as fully as
14 if those provisions were set forth herein. For purposes of
15 this Section, references in such incorporated Sections of the
16 Use Tax Act to users or purchasers means lessees of
17 automobiles under leases subject to this Act.
18 Section 10-25. Use tax collected. The use tax imposed
19 by Section 10-20 shall be collected from the lessee and
20 remitted to the Department by a lessor maintaining a place of
21 business in this State or who titles or registers an
22 automobile with an agency of this State's government that is
23 used for leasing in this State.
24 The use tax imposed by Section 10-20 and not paid to a
25 lessor pursuant to the preceding paragraph of this Section
26 shall be paid to the Department directly by any person using
27 such automobile within this State.
28 Lessors shall collect the tax from lessees by adding the
29 tax to the leasing price of the automobile, when leased for
30 use, in the manner prescribed by the Department. The
31 Department shall have the power to adopt and promulgate
32 reasonable rules and regulations for the adding of such tax
33 by lessors to leasing prices by prescribing bracket systems
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1 for the purpose of enabling such lessors to add and collect,
2 as far as practicable, the amount of such tax.
3 The tax imposed by this Section shall, when collected, be
4 stated as a distinct item on the customer's bill, separate
5 and apart from the leasing price of the automobile.
6 Section 10-30. Severability clause. If any clause,
7 sentence, Section, provision or part thereof of this Act or
8 the application thereof to any person or circumstance shall
9 be adjudged to be unconstitutional, the remainder of this Act
10 or its application to persons or circumstances other than
11 those to which it is held invalid, shall not be affected
12 thereby. In particular, if any provision which exempts or
13 has the effect of exempting some class of users or some kind
14 of use from the tax imposed by this Act should be held to
15 constitute or to result in an invalid classification or to be
16 unconstitutional for some other reason, such provision shall
17 be deemed to be severable with the remainder of this Act
18 without said provision being held constitutional.
19 ARTICLE 99
20 Section 99-5. The Illinois Enterprise Zone Act is
21 amended by adding Section 4.5 as follows:
22 (20 ILCS 655/4.5 new)
23 Sec. 4.5. Eligibility of environmental remediation
24 projects. A project eligible for an environmental
25 remediation tax credit under Section 58.14 of the
26 Environmental Protection Act may be eligible for the
27 incentives provided under this Act as provided in subsection
28 (f-10) of Section 58.14 of the Environmental Protection Act.
29 Section 99-10. The State Finance Act is amended by
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1 changing Sections 6z-18 and 6z-20 and adding Section 5.545 as
2 follows:
3 (30 ILCS 105/5.545 new)
4 Sec. 5.545. The Distressed Communities and Industries
5 Grant Fund. Subsections (b) and (c) of Section 5 of this Act
6 do not apply to this Fund.
7 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
8 Sec. 6z-18. A portion of the money paid into the Local
9 Government Tax Fund from sales of food for human consumption
10 which is to be consumed off the premises where it is sold
11 (other than alcoholic beverages, soft drinks and food which
12 has been prepared for immediate consumption) and prescription
13 and nonprescription medicines, drugs, medical appliances and
14 insulin, urine testing materials, syringes and needles used
15 by diabetics, which occurred in municipalities, shall be
16 distributed to each municipality based upon the sales which
17 occurred in that municipality. The remainder shall be
18 distributed to each county based upon the sales which
19 occurred in the unincorporated area of that county.
20 A portion of the money paid into the Local Government Tax
21 Fund from the 6.25% general use tax rate on the selling price
22 of tangible personal property which is purchased outside
23 Illinois at retail from a retailer and which is titled or
24 registered by any agency of this State's government shall be
25 distributed to municipalities as provided in this paragraph.
26 Each municipality shall receive the amount attributable to
27 sales for which Illinois addresses for titling or
28 registration purposes are given as being in such
29 municipality. The remainder of the money paid into the Local
30 Government Tax Fund from such sales shall be distributed to
31 counties. Each county shall receive the amount attributable
32 to sales for which Illinois addresses for titling or
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1 registration purposes are given as being located in the
2 unincorporated area of such county.
3 A portion of the money paid into the Local Government Tax
4 Fund from the 1.25% rate imposed under the Use Tax Act upon
5 the selling price of any motor vehicle that is purchased
6 outside of Illinois at retail by a lessor for purposes of
7 leasing under a lease subject to the Automobile Leasing
8 Occupation and Use Tax Act which is titled or registered by
9 any agency of this State's government shall be distributed as
10 provided in this paragraph, less 3% for the first 12 monthly
11 distributions and 1% for each monthly distribution
12 thereafter, which sum shall be paid into the Tax Compliance
13 and Administration Fund. Each municipality shall receive the
14 amount attributable to sales for which Illinois addresses for
15 titling or registration purposes are given as being in such
16 municipality. The remainder of the money paid into the Local
17 Government Tax Fund from such sales shall be distributed to
18 counties. Each county shall receive the amount attributable
19 to sales for which Illinois addresses for titling or
20 registration purposes are given as being located in the
21 unincorporated area of such county.
22 A portion of the money paid into the Local Government Tax
23 Fund from the 6.25% general rate (and, beginning July 1, 2000
24 and through December 31, 2000, and, beginning again on July
25 1, 2001, the 1.25% rate on motor fuel and gasohol) on sales
26 subject to taxation under the Retailers' Occupation Tax Act
27 and the Service Occupation Tax Act, which occurred in
28 municipalities, shall be distributed to each municipality,
29 based upon the sales which occurred in that municipality. The
30 remainder shall be distributed to each county, based upon the
31 sales which occurred in the unincorporated area of such
32 county.
33 A portion of the money paid into the Local Government Tax
34 Fund from the 1.25% rate imposed by the Retailers' Occupation
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1 Tax Act upon the sale of any motor vehicle that is sold at
2 retail to a lessor for purposes of leasing under a lease
3 subject to the Automobile Leasing Occupation and Use Tax Act
4 shall be distributed as provided in this paragraph, less 3%
5 for the first 12 monthly distributions and 1% for each
6 monthly distribution thereafter, which sum shall be paid into
7 the Tax Compliance and Administration Fund. The funds shall
8 be distributed to each municipality, based upon the sales
9 which occurred in that municipality. The remainder shall be
10 distributed to each county, based upon the sales which
11 occurred in the unincorporated area of such county.
12 For the purpose of determining allocation to the local
13 government unit, a retail sale by a producer of coal or other
14 mineral mined in Illinois is a sale at retail at the place
15 where the coal or other mineral mined in Illinois is
16 extracted from the earth. This paragraph does not apply to
17 coal or other mineral when it is delivered or shipped by the
18 seller to the purchaser at a point outside Illinois so that
19 the sale is exempt under the United States Constitution as a
20 sale in interstate or foreign commerce.
21 Whenever the Department determines that a refund of money
22 paid into the Local Government Tax Fund should be made to a
23 claimant instead of issuing a credit memorandum, the
24 Department shall notify the State Comptroller, who shall
25 cause the order to be drawn for the amount specified, and to
26 the person named, in such notification from the Department.
27 Such refund shall be paid by the State Treasurer out of the
28 Local Government Tax Fund.
29 On or before the 25th day of each calendar month, the
30 Department shall prepare and certify to the Comptroller the
31 disbursement of stated sums of money to named municipalities
32 and counties, the municipalities and counties to be those
33 entitled to distribution of taxes or penalties paid to the
34 Department during the second preceding calendar month. The
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1 amount to be paid to each municipality or county shall be the
2 amount (not including credit memoranda) collected during the
3 second preceding calendar month by the Department and paid
4 into the Local Government Tax Fund, plus an amount the
5 Department determines is necessary to offset any amounts
6 which were erroneously paid to a different taxing body, and
7 not including an amount equal to the amount of refunds made
8 during the second preceding calendar month by the Department,
9 and not including any amount which the Department determines
10 is necessary to offset any amounts which are payable to a
11 different taxing body but were erroneously paid to the
12 municipality or county. Within 10 days after receipt, by the
13 Comptroller, of the disbursement certification to the
14 municipalities and counties, provided for in this Section to
15 be given to the Comptroller by the Department, the
16 Comptroller shall cause the orders to be drawn for the
17 respective amounts in accordance with the directions
18 contained in such certification.
19 When certifying the amount of monthly disbursement to a
20 municipality or county under this Section, the Department
21 shall increase or decrease that amount by an amount necessary
22 to offset any misallocation of previous disbursements. The
23 offset amount shall be the amount erroneously disbursed
24 within the 6 months preceding the time a misallocation is
25 discovered.
26 The provisions directing the distributions from the
27 special fund in the State Treasury provided for in this
28 Section shall constitute an irrevocable and continuing
29 appropriation of all amounts as provided herein. The State
30 Treasurer and State Comptroller are hereby authorized to make
31 distributions as provided in this Section.
32 In construing any development, redevelopment, annexation,
33 preannexation or other lawful agreement in effect prior to
34 September 1, 1990, which describes or refers to receipts from
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1 a county or municipal retailers' occupation tax, use tax or
2 service occupation tax which now cannot be imposed, such
3 description or reference shall be deemed to include the
4 replacement revenue for such abolished taxes, distributed
5 from the Local Government Tax Fund.
6 (Source: P.A. 90-491, eff. 1-1-98; 91-51, eff. 6-30-99;
7 91-872, eff. 7-1-00.)
8 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
9 Sec. 6z-20. Of the money received from the 6.25% general
10 rate (and, beginning July 1, 2000 and through December 31,
11 2000, and, beginning again on July 1, 2001, the 1.25% rate on
12 motor fuel and gasohol) on sales subject to taxation under
13 the Retailers' Occupation Tax Act and Service Occupation Tax
14 Act and paid into the County and Mass Transit District Fund,
15 distribution to the Regional Transportation Authority tax
16 fund, created pursuant to Section 4.03 of the Regional
17 Transportation Authority Act, for deposit therein shall be
18 made based upon the retail sales occurring in a county having
19 more than 3,000,000 inhabitants. The remainder shall be
20 distributed to each county having 3,000,000 or fewer
21 inhabitants based upon the retail sales occurring in each
22 such county.
23 Of the money received from the 1.25% rate imposed by the
24 Retailers' Occupation Tax Act upon the sale of any motor
25 vehicle that is sold at retail to a lessor for purposes of
26 leasing under a lease subject to the Automobile Leasing
27 Occupation and Use Tax Act, and paid into the County and Mass
28 Transit District Fund shall be distributed as provided in
29 this paragraph, less 3% for the first 12 monthly
30 distributions and 1% for each monthly distribution
31 thereafter, which sum shall be paid into the Tax Compliance
32 and Administration Fund. Distribution to the Regional
33 Transportation Authority Tax Fund, created pursuant to
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1 Section 4.03 of the Regional Transportation Authority Act,
2 for deposit therein shall be made based upon the retail sales
3 occurring in a county having more than 3,000,000 inhabitants.
4 The remainder shall be distributed to each county having
5 3,000,000 or fewer inhabitants based upon the retail sales
6 occurring in each such county.
7 For the purpose of determining allocation to the local
8 government unit, a retail sale by a producer of coal or other
9 mineral mined in Illinois is a sale at retail at the place
10 where the coal or other mineral mined in Illinois is
11 extracted from the earth. This paragraph does not apply to
12 coal or other mineral when it is delivered or shipped by the
13 seller to the purchaser at a point outside Illinois so that
14 the sale is exempt under the United States Constitution as a
15 sale in interstate or foreign commerce.
16 Of the money received from the 6.25% general use tax rate
17 on tangible personal property which is purchased outside
18 Illinois at retail from a retailer and which is titled or
19 registered by any agency of this State's government and paid
20 into the County and Mass Transit District Fund, the amount
21 for which Illinois addresses for titling or registration
22 purposes are given as being in each county having more than
23 3,000,000 inhabitants shall be distributed into the Regional
24 Transportation Authority tax fund, created pursuant to
25 Section 4.03 of the Regional Transportation Authority Act.
26 The remainder of the money paid from such sales shall be
27 distributed to each county based on sales for which Illinois
28 addresses for titling or registration purposes are given as
29 being located in the county. Any money paid into the
30 Regional Transportation Authority Occupation and Use Tax
31 Replacement Fund from the County and Mass Transit District
32 Fund prior to January 14, 1991, which has not been paid to
33 the Authority prior to that date, shall be transferred to the
34 Regional Transportation Authority tax fund.
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1 Of the money received from the 1.25% rate imposed under
2 the Use Tax Act upon the selling price of any motor vehicle
3 that is purchased outside of Illinois at retail by a lessor
4 for purposes of leasing under a lease subject to the
5 Automobile Leasing Occupation and Use Tax Act which is titled
6 or registered by any agency of this State's government and is
7 paid into the County and Mass Transit District Fund, shall be
8 distributed as provided in this paragraph, less 3% for the
9 first 12 monthly distributions and 1% for each monthly
10 distribution thereafter, which sum shall be paid into the Tax
11 Compliance and Administration Fund. The amount for which
12 Illinois addresses for titling or registration purposes are
13 given as being in each county having more than 3,000,000
14 inhabitants shall be distributed into the Regional
15 Transportation Authority Tax Fund, created pursuant to
16 Section 4.03 of the Regional Transportation Authority Act.
17 The remainder of the moneys paid from such sales shall be
18 distributed to each county based on sales for which Illinois
19 addresses for titling or registration purposes are given as
20 being located in that county.
21 Whenever the Department determines that a refund of money
22 paid into the County and Mass Transit District Fund should be
23 made to a claimant instead of issuing a credit memorandum,
24 the Department shall notify the State Comptroller, who shall
25 cause the order to be drawn for the amount specified, and to
26 the person named, in such notification from the Department.
27 Such refund shall be paid by the State Treasurer out of the
28 County and Mass Transit District Fund.
29 On or before the 25th day of each calendar month, the
30 Department shall prepare and certify to the Comptroller the
31 disbursement of stated sums of money to the Regional
32 Transportation Authority and to named counties, the counties
33 to be those entitled to distribution, as hereinabove
34 provided, of taxes or penalties paid to the Department during
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1 the second preceding calendar month. The amount to be paid
2 to the Regional Transportation Authority and each county
3 having 3,000,000 or fewer inhabitants shall be the amount
4 (not including credit memoranda) collected during the second
5 preceding calendar month by the Department and paid into the
6 County and Mass Transit District Fund, plus an amount the
7 Department determines is necessary to offset any amounts
8 which were erroneously paid to a different taxing body, and
9 not including an amount equal to the amount of refunds made
10 during the second preceding calendar month by the Department,
11 and not including any amount which the Department determines
12 is necessary to offset any amounts which were payable to a
13 different taxing body but were erroneously paid to the
14 Regional Transportation Authority or county. Within 10 days
15 after receipt, by the Comptroller, of the disbursement
16 certification to the Regional Transportation Authority and
17 counties, provided for in this Section to be given to the
18 Comptroller by the Department, the Comptroller shall cause
19 the orders to be drawn for the respective amounts in
20 accordance with the directions contained in such
21 certification.
22 When certifying the amount of a monthly disbursement to
23 the Regional Transportation Authority or to a county under
24 this Section, the Department shall increase or decrease that
25 amount by an amount necessary to offset any misallocation of
26 previous disbursements. The offset amount shall be the
27 amount erroneously disbursed within the 6 months preceding
28 the time a misallocation is discovered.
29 The provisions directing the distributions from the
30 special fund in the State Treasury provided for in this
31 Section and from the Regional Transportation Authority tax
32 fund created by Section 4.03 of the Regional Transportation
33 Authority Act shall constitute an irrevocable and continuing
34 appropriation of all amounts as provided herein. The State
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1 Treasurer and State Comptroller are hereby authorized to make
2 distributions as provided in this Section.
3 In construing any development, redevelopment, annexation,
4 preannexation or other lawful agreement in effect prior to
5 September 1, 1990, which describes or refers to receipts from
6 a county or municipal retailers' occupation tax, use tax or
7 service occupation tax which now cannot be imposed, such
8 description or reference shall be deemed to include the
9 replacement revenue for such abolished taxes, distributed
10 from the County and Mass Transit District Fund or Local
11 Government Distributive Fund, as the case may be.
12 (Source: P.A. 90-491, eff. 1-1-98; 91-872, eff. 7-1-00.)
13 Section 99-15. The Illinois Income Tax Act is amended by
14 changing Sections 201, 203, 204, 208, and 212 and adding
15 Sections 208.5, 208.7, 213, 214, 215, 216, 217, 218, and 219
16 as follows:
17 (35 ILCS 5/201) (from Ch. 120, par. 2-201)
18 Sec. 201. Tax Imposed.
19 (a) In general. A tax measured by net income is hereby
20 imposed on every individual, corporation, trust and estate
21 for each taxable year ending after July 31, 1969 on the
22 privilege of earning or receiving income in or as a resident
23 of this State. Such tax shall be in addition to all other
24 occupation or privilege taxes imposed by this State or by any
25 municipal corporation or political subdivision thereof.
26 (b) Rates. The tax imposed by subsection (a) of this
27 Section shall be determined as follows, except as adjusted by
28 subsection (d-1):
29 (1) In the case of an individual, trust or estate,
30 for taxable years ending prior to July 1, 1989, an amount
31 equal to 2 1/2% of the taxpayer's net income for the
32 taxable year.
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1 (2) In the case of an individual, trust or estate,
2 for taxable years beginning prior to July 1, 1989 and
3 ending after June 30, 1989, an amount equal to the sum of
4 (i) 2 1/2% of the taxpayer's net income for the period
5 prior to July 1, 1989, as calculated under Section 202.3,
6 and (ii) 3% of the taxpayer's net income for the period
7 after June 30, 1989, as calculated under Section 202.3.
8 (3) In the case of an individual, trust or estate,
9 for taxable years beginning after June 30, 1989, an
10 amount equal to 3% of the taxpayer's net income for the
11 taxable year.
12 (4) (Blank).
13 (5) (Blank).
14 (6) In the case of a corporation, for taxable years
15 ending prior to July 1, 1989, an amount equal to 4% of
16 the taxpayer's net income for the taxable year.
17 (7) In the case of a corporation, for taxable years
18 beginning prior to July 1, 1989 and ending after June 30,
19 1989, an amount equal to the sum of (i) 4% of the
20 taxpayer's net income for the period prior to July 1,
21 1989, as calculated under Section 202.3, and (ii) 4.8% of
22 the taxpayer's net income for the period after June 30,
23 1989, as calculated under Section 202.3.
24 (8) In the case of a corporation, for taxable years
25 beginning after June 30, 1989, an amount equal to 4.8% of
26 the taxpayer's net income for the taxable year.
27 (c) Beginning on July 1, 1979 and thereafter, in
28 addition to such income tax, there is also hereby imposed the
29 Personal Property Tax Replacement Income Tax measured by net
30 income on every corporation (including Subchapter S
31 corporations), partnership and trust, for each taxable year
32 ending after June 30, 1979. Such taxes are imposed on the
33 privilege of earning or receiving income in or as a resident
34 of this State. The Personal Property Tax Replacement Income
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1 Tax shall be in addition to the income tax imposed by
2 subsections (a) and (b) of this Section and in addition to
3 all other occupation or privilege taxes imposed by this State
4 or by any municipal corporation or political subdivision
5 thereof.
6 (d) Additional Personal Property Tax Replacement Income
7 Tax Rates. The personal property tax replacement income tax
8 imposed by this subsection and subsection (c) of this Section
9 in the case of a corporation, other than a Subchapter S
10 corporation and except as adjusted by subsection (d-1), shall
11 be an additional amount equal to 2.85% of such taxpayer's net
12 income for the taxable year, except that beginning on January
13 1, 1981, and thereafter, the rate of 2.85% specified in this
14 subsection shall be reduced to 2.5%, and in the case of a
15 partnership, trust or a Subchapter S corporation shall be an
16 additional amount equal to 1.5% of such taxpayer's net income
17 for the taxable year.
18 (d-1) Rate reduction for certain foreign insurers. In
19 the case of a foreign insurer, as defined by Section 35A-5 of
20 the Illinois Insurance Code, whose state or country of
21 domicile imposes on insurers domiciled in Illinois a
22 retaliatory tax (excluding any insurer whose premiums from
23 reinsurance assumed are 50% or more of its total insurance
24 premiums as determined under paragraph (2) of subsection (b)
25 of Section 304, except that for purposes of this
26 determination premiums from reinsurance do not include
27 premiums from inter-affiliate reinsurance arrangements),
28 beginning with taxable years ending on or after December 31,
29 1999, the sum of the rates of tax imposed by subsections (b)
30 and (d) shall be reduced (but not increased) to the rate at
31 which the total amount of tax imposed under this Act, net of
32 all credits allowed under this Act, shall equal (i) the total
33 amount of tax that would be imposed on the foreign insurer's
34 net income allocable to Illinois for the taxable year by such
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1 foreign insurer's state or country of domicile if that net
2 income were subject to all income taxes and taxes measured by
3 net income imposed by such foreign insurer's state or country
4 of domicile, net of all credits allowed or (ii) a rate of
5 zero if no such tax is imposed on such income by the foreign
6 insurer's state of domicile. For the purposes of this
7 subsection (d-1), an inter-affiliate includes a mutual
8 insurer under common management.
9 (1) For the purposes of subsection (d-1), in no
10 event shall the sum of the rates of tax imposed by
11 subsections (b) and (d) be reduced below the rate at
12 which the sum of:
13 (A) the total amount of tax imposed on such
14 foreign insurer under this Act for a taxable year,
15 net of all credits allowed under this Act, plus
16 (B) the privilege tax imposed by Section 409
17 of the Illinois Insurance Code, the fire insurance
18 company tax imposed by Section 12 of the Fire
19 Investigation Act, and the fire department taxes
20 imposed under Section 11-10-1 of the Illinois
21 Municipal Code,
22 equals 1.25% of the net taxable premiums written for the
23 taxable year, as described by subsection (1) of Section
24 409 of the Illinois Insurance Code. This paragraph will
25 in no event increase the rates imposed under subsections
26 (b) and (d).
27 (2) Any reduction in the rates of tax imposed by
28 this subsection shall be applied first against the rates
29 imposed by subsection (b) and only after the tax imposed
30 by subsection (a) net of all credits allowed under this
31 Section other than the credit allowed under subsection
32 (i) has been reduced to zero, against the rates imposed
33 by subsection (d).
34 This subsection (d-1) is exempt from the provisions of
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1 Section 250.
2 (e) Investment credit. A taxpayer shall be allowed a
3 credit against the Personal Property Tax Replacement Income
4 Tax for investment in qualified property.
5 (1) A taxpayer shall be allowed a credit equal to
6 .5% of the basis of qualified property placed in service
7 during the taxable year, provided such property is placed
8 in service on or after July 1, 1984. There shall be
9 allowed an additional credit equal to .5% of the basis of
10 qualified property placed in service during the taxable
11 year, provided such property is placed in service on or
12 after July 1, 1986, and the taxpayer's base employment
13 within Illinois has increased by 1% or more over the
14 preceding year as determined by the taxpayer's employment
15 records filed with the Illinois Department of Employment
16 Security. Taxpayers who are new to Illinois shall be
17 deemed to have met the 1% growth in base employment for
18 the first year in which they file employment records with
19 the Illinois Department of Employment Security. The
20 provisions added to this Section by Public Act 85-1200
21 (and restored by Public Act 87-895) shall be construed as
22 declaratory of existing law and not as a new enactment.
23 If, in any year, the increase in base employment within
24 Illinois over the preceding year is less than 1%, the
25 additional credit shall be limited to that percentage
26 times a fraction, the numerator of which is .5% and the
27 denominator of which is 1%, but shall not exceed .5%.
28 The investment credit shall not be allowed to the extent
29 that it would reduce a taxpayer's liability in any tax
30 year below zero, nor may any credit for qualified
31 property be allowed for any year other than the year in
32 which the property was placed in service in Illinois. For
33 tax years ending on or after December 31, 1987, and on or
34 before December 31, 1988, the credit shall be allowed for
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1 the tax year in which the property is placed in service,
2 or, if the amount of the credit exceeds the tax liability
3 for that year, whether it exceeds the original liability
4 or the liability as later amended, such excess may be
5 carried forward and applied to the tax liability of the 5
6 taxable years following the excess credit years if the
7 taxpayer (i) makes investments which cause the creation
8 of a minimum of 2,000 full-time equivalent jobs in
9 Illinois, (ii) is located in an enterprise zone
10 established pursuant to the Illinois Enterprise Zone Act
11 and (iii) is certified by the Department of Commerce and
12 Community Affairs as complying with the requirements
13 specified in clause (i) and (ii) by July 1, 1986. The
14 Department of Commerce and Community Affairs shall notify
15 the Department of Revenue of all such certifications
16 immediately. For tax years ending after December 31,
17 1988, the credit shall be allowed for the tax year in
18 which the property is placed in service, or, if the
19 amount of the credit exceeds the tax liability for that
20 year, whether it exceeds the original liability or the
21 liability as later amended, such excess may be carried
22 forward and applied to the tax liability of the 5 taxable
23 years following the excess credit years. The credit shall
24 be applied to the earliest year for which there is a
25 liability. If there is credit from more than one tax year
26 that is available to offset a liability, earlier credit
27 shall be applied first.
28 (2) The term "qualified property" means property
29 which:
30 (A) is tangible, whether new or used,
31 including buildings and structural components of
32 buildings and signs that are real property, but not
33 including land or improvements to real property that
34 are not a structural component of a building such as
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1 landscaping, sewer lines, local access roads,
2 fencing, parking lots, and other appurtenances;
3 (B) is depreciable pursuant to Section 167 of
4 the Internal Revenue Code, except that "3-year
5 property" as defined in Section 168(c)(2)(A) of that
6 Code is not eligible for the credit provided by this
7 subsection (e);
8 (C) is acquired by purchase as defined in
9 Section 179(d) of the Internal Revenue Code;
10 (D) is used in Illinois by a taxpayer who is
11 primarily engaged in manufacturing, or in mining
12 coal or fluorite, or in retailing; and
13 (E) has not previously been used in Illinois
14 in such a manner and by such a person as would
15 qualify for the credit provided by this subsection
16 (e) or subsection (f).
17 (3) For purposes of this subsection (e),
18 "manufacturing" means the material staging and production
19 of tangible personal property by procedures commonly
20 regarded as manufacturing, processing, fabrication, or
21 assembling which changes some existing material into new
22 shapes, new qualities, or new combinations. For purposes
23 of this subsection (e) the term "mining" shall have the
24 same meaning as the term "mining" in Section 613(c) of
25 the Internal Revenue Code. For purposes of this
26 subsection (e), the term "retailing" means the sale of
27 tangible personal property or services rendered in
28 conjunction with the sale of tangible consumer goods or
29 commodities.
30 (4) The basis of qualified property shall be the
31 basis used to compute the depreciation deduction for
32 federal income tax purposes.
33 (5) If the basis of the property for federal income
34 tax depreciation purposes is increased after it has been
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1 placed in service in Illinois by the taxpayer, the amount
2 of such increase shall be deemed property placed in
3 service on the date of such increase in basis.
4 (6) The term "placed in service" shall have the
5 same meaning as under Section 46 of the Internal Revenue
6 Code.
7 (7) If during any taxable year, any property ceases
8 to be qualified property in the hands of the taxpayer
9 within 48 months after being placed in service, or the
10 situs of any qualified property is moved outside Illinois
11 within 48 months after being placed in service, the
12 Personal Property Tax Replacement Income Tax for such
13 taxable year shall be increased. Such increase shall be
14 determined by (i) recomputing the investment credit which
15 would have been allowed for the year in which credit for
16 such property was originally allowed by eliminating such
17 property from such computation and, (ii) subtracting such
18 recomputed credit from the amount of credit previously
19 allowed. For the purposes of this paragraph (7), a
20 reduction of the basis of qualified property resulting
21 from a redetermination of the purchase price shall be
22 deemed a disposition of qualified property to the extent
23 of such reduction.
24 (8) Unless the investment credit is extended by
25 law, the basis of qualified property shall not include
26 costs incurred after December 31, 2003, except for costs
27 incurred pursuant to a binding contract entered into on
28 or before December 31, 2003.
29 (9) Each taxable year ending before December 31,
30 2000, a partnership may elect to pass through to its
31 partners the credits to which the partnership is entitled
32 under this subsection (e) for the taxable year. A
33 partner may use the credit allocated to him or her under
34 this paragraph only against the tax imposed in
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1 subsections (c) and (d) of this Section. If the
2 partnership makes that election, those credits shall be
3 allocated among the partners in the partnership in
4 accordance with the rules set forth in Section 704(b) of
5 the Internal Revenue Code, and the rules promulgated
6 under that Section, and the allocated amount of the
7 credits shall be allowed to the partners for that taxable
8 year. The partnership shall make this election on its
9 Personal Property Tax Replacement Income Tax return for
10 that taxable year. The election to pass through the
11 credits shall be irrevocable.
12 For taxable years ending on or after December 31,
13 2000, a partner that qualifies its partnership for a
14 subtraction under subparagraph (I) of paragraph (2) of
15 subsection (d) of Section 203 or a shareholder that
16 qualifies a Subchapter S corporation for a subtraction
17 under subparagraph (S) of paragraph (2) of subsection (b)
18 of Section 203 shall be allowed a credit under this
19 subsection (e) equal to its share of the credit earned
20 under this subsection (e) during the taxable year by the
21 partnership or Subchapter S corporation, determined in
22 accordance with the determination of income and
23 distributive share of income under Sections 702 and 704
24 and Subchapter S of the Internal Revenue Code. This
25 paragraph is exempt from the provisions of Section 250.
26 (f) Investment credit; Enterprise Zone.
27 (1) A taxpayer shall be allowed a credit against
28 the tax imposed by subsections (a) and (b) of this
29 Section for investment in qualified property which is
30 placed in service in an Enterprise Zone created pursuant
31 to the Illinois Enterprise Zone Act. For partners,
32 shareholders of Subchapter S corporations, and owners of
33 limited liability companies, if the liability company is
34 treated as a partnership for purposes of federal and
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1 State income taxation, there shall be allowed a credit
2 under this subsection (f) to be determined in accordance
3 with the determination of income and distributive share
4 of income under Sections 702 and 704 and Subchapter S of
5 the Internal Revenue Code. The credit shall be .5% of the
6 basis for such property. The credit shall be available
7 only in the taxable year in which the property is placed
8 in service in the Enterprise Zone and shall not be
9 allowed to the extent that it would reduce a taxpayer's
10 liability for the tax imposed by subsections (a) and (b)
11 of this Section to below zero. For tax years ending on or
12 after December 31, 1985, the credit shall be allowed for
13 the tax year in which the property is placed in service,
14 or, if the amount of the credit exceeds the tax liability
15 for that year, whether it exceeds the original liability
16 or the liability as later amended, such excess may be
17 carried forward and applied to the tax liability of the 5
18 taxable years following the excess credit year. The
19 credit shall be applied to the earliest year for which
20 there is a liability. If there is credit from more than
21 one tax year that is available to offset a liability, the
22 credit accruing first in time shall be applied first.
23 (2) The term qualified property means property
24 which:
25 (A) is tangible, whether new or used,
26 including buildings and structural components of
27 buildings;
28 (B) is depreciable pursuant to Section 167 of
29 the Internal Revenue Code, except that "3-year
30 property" as defined in Section 168(c)(2)(A) of that
31 Code is not eligible for the credit provided by this
32 subsection (f);
33 (C) is acquired by purchase as defined in
34 Section 179(d) of the Internal Revenue Code;
-35- LRB9201889SMdvam01
1 (D) is used in the Enterprise Zone by the
2 taxpayer; and
3 (E) has not been previously used in Illinois
4 in such a manner and by such a person as would
5 qualify for the credit provided by this subsection
6 (f) or subsection (e).
7 (3) The basis of qualified property shall be the
8 basis used to compute the depreciation deduction for
9 federal income tax purposes.
10 (4) If the basis of the property for federal income
11 tax depreciation purposes is increased after it has been
12 placed in service in the Enterprise Zone by the taxpayer,
13 the amount of such increase shall be deemed property
14 placed in service on the date of such increase in basis.
15 (5) The term "placed in service" shall have the
16 same meaning as under Section 46 of the Internal Revenue
17 Code.
18 (6) If during any taxable year, any property ceases
19 to be qualified property in the hands of the taxpayer
20 within 48 months after being placed in service, or the
21 situs of any qualified property is moved outside the
22 Enterprise Zone within 48 months after being placed in
23 service, the tax imposed under subsections (a) and (b) of
24 this Section for such taxable year shall be increased.
25 Such increase shall be determined by (i) recomputing the
26 investment credit which would have been allowed for the
27 year in which credit for such property was originally
28 allowed by eliminating such property from such
29 computation, and (ii) subtracting such recomputed credit
30 from the amount of credit previously allowed. For the
31 purposes of this paragraph (6), a reduction of the basis
32 of qualified property resulting from a redetermination of
33 the purchase price shall be deemed a disposition of
34 qualified property to the extent of such reduction.
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1 (g) Jobs Tax Credit; Enterprise Zone and Foreign Trade
2 Zone or Sub-Zone.
3 (1) A taxpayer conducting a trade or business in an
4 enterprise zone or a High Impact Business designated by
5 the Department of Commerce and Community Affairs
6 conducting a trade or business in a federally designated
7 Foreign Trade Zone or Sub-Zone shall be allowed a credit
8 against the tax imposed by subsections (a) and (b) of
9 this Section in the amount of $500 per eligible employee
10 hired to work in the zone during the taxable year.
11 (2) To qualify for the credit:
12 (A) the taxpayer must hire 5 or more eligible
13 employees to work in an enterprise zone or federally
14 designated Foreign Trade Zone or Sub-Zone during the
15 taxable year;
16 (B) the taxpayer's total employment within the
17 enterprise zone or federally designated Foreign
18 Trade Zone or Sub-Zone must increase by 5 or more
19 full-time employees beyond the total employed in
20 that zone at the end of the previous tax year for
21 which a jobs tax credit under this Section was
22 taken, or beyond the total employed by the taxpayer
23 as of December 31, 1985, whichever is later; and
24 (C) the eligible employees must be employed
25 180 consecutive days in order to be deemed hired for
26 purposes of this subsection.
27 (3) An "eligible employee" means an employee who
28 is:
29 (A) Certified by the Department of Commerce
30 and Community Affairs as "eligible for services"
31 pursuant to regulations promulgated in accordance
32 with Title II of the Job Training Partnership Act,
33 Training Services for the Disadvantaged or Title III
34 of the Job Training Partnership Act, Employment and
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1 Training Assistance for Dislocated Workers Program.
2 (B) Hired after the enterprise zone or
3 federally designated Foreign Trade Zone or Sub-Zone
4 was designated or the trade or business was located
5 in that zone, whichever is later.
6 (C) Employed in the enterprise zone or Foreign
7 Trade Zone or Sub-Zone. An employee is employed in
8 an enterprise zone or federally designated Foreign
9 Trade Zone or Sub-Zone if his services are rendered
10 there or it is the base of operations for the
11 services performed.
12 (D) A full-time employee working 30 or more
13 hours per week.
14 (4) For tax years ending on or after December 31,
15 1985 and prior to December 31, 1988, the credit shall be
16 allowed for the tax year in which the eligible employees
17 are hired. For tax years ending on or after December 31,
18 1988, the credit shall be allowed for the tax year
19 immediately following the tax year in which the eligible
20 employees are hired. If the amount of the credit exceeds
21 the tax liability for that year, whether it exceeds the
22 original liability or the liability as later amended,
23 such excess may be carried forward and applied to the tax
24 liability of the 5 taxable years following the excess
25 credit year. The credit shall be applied to the earliest
26 year for which there is a liability. If there is credit
27 from more than one tax year that is available to offset a
28 liability, earlier credit shall be applied first.
29 (5) The Department of Revenue shall promulgate such
30 rules and regulations as may be deemed necessary to carry
31 out the purposes of this subsection (g).
32 (6) The credit shall be available for eligible
33 employees hired on or after January 1, 1986.
34 (h) Investment credit; High Impact Business.
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1 (1) Subject to subsection (b) of Section 5.5 of the
2 Illinois Enterprise Zone Act, a taxpayer shall be allowed
3 a credit against the tax imposed by subsections (a) and
4 (b) of this Section for investment in qualified property
5 which is placed in service by a Department of Commerce
6 and Community Affairs designated High Impact Business.
7 The credit shall be .5% of the basis for such property.
8 The credit shall not be available until the minimum
9 investments in qualified property set forth in Section
10 5.5 of the Illinois Enterprise Zone Act have been
11 satisfied and shall not be allowed to the extent that it
12 would reduce a taxpayer's liability for the tax imposed
13 by subsections (a) and (b) of this Section to below zero.
14 The credit applicable to such minimum investments shall
15 be taken in the taxable year in which such minimum
16 investments have been completed. The credit for
17 additional investments beyond the minimum investment by a
18 designated high impact business shall be available only
19 in the taxable year in which the property is placed in
20 service and shall not be allowed to the extent that it
21 would reduce a taxpayer's liability for the tax imposed
22 by subsections (a) and (b) of this Section to below zero.
23 For tax years ending on or after December 31, 1987, the
24 credit shall be allowed for the tax year in which the
25 property is placed in service, or, if the amount of the
26 credit exceeds the tax liability for that year, whether
27 it exceeds the original liability or the liability as
28 later amended, such excess may be carried forward and
29 applied to the tax liability of the 5 taxable years
30 following the excess credit year. The credit shall be
31 applied to the earliest year for which there is a
32 liability. If there is credit from more than one tax
33 year that is available to offset a liability, the credit
34 accruing first in time shall be applied first.
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1 Changes made in this subdivision (h)(1) by Public
2 Act 88-670 restore changes made by Public Act 85-1182 and
3 reflect existing law.
4 (2) The term qualified property means property
5 which:
6 (A) is tangible, whether new or used,
7 including buildings and structural components of
8 buildings;
9 (B) is depreciable pursuant to Section 167 of
10 the Internal Revenue Code, except that "3-year
11 property" as defined in Section 168(c)(2)(A) of that
12 Code is not eligible for the credit provided by this
13 subsection (h);
14 (C) is acquired by purchase as defined in
15 Section 179(d) of the Internal Revenue Code; and
16 (D) is not eligible for the Enterprise Zone
17 Investment Credit provided by subsection (f) of this
18 Section.
19 (3) The basis of qualified property shall be the
20 basis used to compute the depreciation deduction for
21 federal income tax purposes.
22 (4) If the basis of the property for federal income
23 tax depreciation purposes is increased after it has been
24 placed in service in a federally designated Foreign Trade
25 Zone or Sub-Zone located in Illinois by the taxpayer, the
26 amount of such increase shall be deemed property placed
27 in service on the date of such increase in basis.
28 (5) The term "placed in service" shall have the
29 same meaning as under Section 46 of the Internal Revenue
30 Code.
31 (6) If during any taxable year ending on or before
32 December 31, 1996, any property ceases to be qualified
33 property in the hands of the taxpayer within 48 months
34 after being placed in service, or the situs of any
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1 qualified property is moved outside Illinois within 48
2 months after being placed in service, the tax imposed
3 under subsections (a) and (b) of this Section for such
4 taxable year shall be increased. Such increase shall be
5 determined by (i) recomputing the investment credit which
6 would have been allowed for the year in which credit for
7 such property was originally allowed by eliminating such
8 property from such computation, and (ii) subtracting such
9 recomputed credit from the amount of credit previously
10 allowed. For the purposes of this paragraph (6), a
11 reduction of the basis of qualified property resulting
12 from a redetermination of the purchase price shall be
13 deemed a disposition of qualified property to the extent
14 of such reduction.
15 (7) Beginning with tax years ending after December
16 31, 1996, if a taxpayer qualifies for the credit under
17 this subsection (h) and thereby is granted a tax
18 abatement and the taxpayer relocates its entire facility
19 in violation of the explicit terms and length of the
20 contract under Section 18-183 of the Property Tax Code,
21 the tax imposed under subsections (a) and (b) of this
22 Section shall be increased for the taxable year in which
23 the taxpayer relocated its facility by an amount equal to
24 the amount of credit received by the taxpayer under this
25 subsection (h).
26 (i) A credit shall be allowed against the tax imposed by
27 subsections (a) and (b) of this Section for the tax imposed
28 by subsections (c) and (d) of this Section. This credit
29 shall be computed by multiplying the tax imposed by
30 subsections (c) and (d) of this Section by a fraction, the
31 numerator of which is base income allocable to Illinois and
32 the denominator of which is Illinois base income, and further
33 multiplying the product by the tax rate imposed by
34 subsections (a) and (b) of this Section.
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1 Any credit earned on or after December 31, 1986 under
2 this subsection which is unused in the year the credit is
3 computed because it exceeds the tax liability imposed by
4 subsections (a) and (b) for that year (whether it exceeds the
5 original liability or the liability as later amended) may be
6 carried forward and applied to the tax liability imposed by
7 subsections (a) and (b) of the 5 taxable years following the
8 excess credit year. This credit shall be applied first to
9 the earliest year for which there is a liability. If there
10 is a credit under this subsection from more than one tax year
11 that is available to offset a liability the earliest credit
12 arising under this subsection shall be applied first.
13 If, during any taxable year ending on or after December
14 31, 1986, the tax imposed by subsections (c) and (d) of this
15 Section for which a taxpayer has claimed a credit under this
16 subsection (i) is reduced, the amount of credit for such tax
17 shall also be reduced. Such reduction shall be determined by
18 recomputing the credit to take into account the reduced tax
19 imposed by subsection (c) and (d). If any portion of the
20 reduced amount of credit has been carried to a different
21 taxable year, an amended return shall be filed for such
22 taxable year to reduce the amount of credit claimed.
23 (j) Training expense credit. Beginning with tax years
24 ending on or after December 31, 1986, a taxpayer shall be
25 allowed a credit against the tax imposed by subsection (a)
26 and (b) under this Section for all amounts paid or accrued,
27 on behalf of all persons employed by the taxpayer in Illinois
28 or Illinois residents employed outside of Illinois by a
29 taxpayer, for educational or vocational training in
30 semi-technical or technical fields or semi-skilled or skilled
31 fields, which were deducted from gross income in the
32 computation of taxable income. The credit against the tax
33 imposed by subsections (a) and (b) shall be 1.6% of such
34 training expenses. For partners, shareholders of subchapter
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1 S corporations, and owners of limited liability companies, if
2 the liability company is treated as a partnership for
3 purposes of federal and State income taxation, there shall be
4 allowed a credit under this subsection (j) to be determined
5 in accordance with the determination of income and
6 distributive share of income under Sections 702 and 704 and
7 subchapter S of the Internal Revenue Code.
8 Any credit allowed under this subsection which is unused
9 in the year the credit is earned may be carried forward to
10 each of the 5 taxable years following the year for which the
11 credit is first computed until it is used. This credit shall
12 be applied first to the earliest year for which there is a
13 liability. If there is a credit under this subsection from
14 more than one tax year that is available to offset a
15 liability the earliest credit arising under this subsection
16 shall be applied first.
17 (k) Research and development credit.
18 Beginning with tax years ending after July 1, 1990, a
19 taxpayer shall be allowed a credit against the tax imposed by
20 subsections (a) and (b) of this Section for increasing
21 research activities in this State. The credit allowed
22 against the tax imposed by subsections (a) and (b) shall be
23 equal to 6 1/2% of the qualifying expenditures for increasing
24 research activities in this State. For partners, shareholders
25 of subchapter S corporations, and owners of limited liability
26 companies, if the liability company is treated as a
27 partnership for purposes of federal and State income
28 taxation, there shall be allowed a credit under this
29 subsection to be determined in accordance with the
30 determination of income and distributive share of income
31 under Sections 702 and 704 and subchapter S of the Internal
32 Revenue Code.
33 For purposes of this subsection:,
34 "Qualifying expenditures" means the qualifying
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1 expenditures as defined for the federal credit for increasing
2 research activities which would be allowable under Section 41
3 of the Internal Revenue Code and which are conducted in this
4 State.,
5 "Qualifying expenditures for increasing research
6 activities in this State" means, at the election of the
7 taxpayer, either (1) the excess of qualifying expenditures
8 for the taxable year in which incurred over qualifying
9 expenditures for the base period or (2) as an alternate
10 credit, for taxable years ending on or after December 31,
11 2001, the qualifying expenditures for the taxable year
12 incurred in this State computed in a manner consistent with
13 the alternative incremental credit described in section
14 41(c)(4) of the Internal Revenue Code. The taxpayer may make
15 this election regardless of the method used for the
16 taxpayer's federal income tax. An election is for the tax
17 year, and the taxpayer may use another or the same method for
18 any subsequent year. For purposes of the alternate credit
19 computation, the credit percentages applicable to qualified
20 research expenses described in clauses (i), (ii), and (iii)
21 of section 41(c)(4)(A) of the Internal Revenue Code are
22 1.65%, 2.20%, and 2.75%, respectively.,
23 "Qualifying expenditures for the base period" means the
24 average of the qualifying expenditures for each year in the
25 base period, and "base period" means the 3 taxable years
26 immediately preceding the taxable year for which the
27 determination is being made.
28 Any credit in excess of the tax liability for the taxable
29 year may be carried forward. A taxpayer may elect to have the
30 unused credit shown on its final completed return carried
31 over as a credit against the tax liability for the following
32 5 taxable years or until it has been fully used, whichever
33 occurs first.
34 If an unused credit is carried forward to a given year
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1 from 2 or more earlier years, that credit arising in the
2 earliest year will be applied first against the tax liability
3 for the given year. If a tax liability for the given year
4 still remains, the credit from the next earliest year will
5 then be applied, and so on, until all credits have been used
6 or no tax liability for the given year remains. Any
7 remaining unused credit or credits then will be carried
8 forward to the next following year in which a tax liability
9 is incurred, except that no credit can be carried forward to
10 a year which is more than 5 years after the year in which the
11 expense for which the credit is given was incurred.
12 Unless extended by law, the credit shall not include
13 costs incurred after December 31, 2009 2004, except for costs
14 incurred pursuant to a binding contract entered into on or
15 before December 31, 2009 2004.
16 No inference shall be drawn from this amendatory Act of
17 the 91st General Assembly in construing this Section for
18 taxable years beginning before January 1, 1999.
19 (l) Environmental Remediation Tax Credit.
20 (i) For tax years ending after December 31, 1997
21 and on or before December 31, 2010 2001, a taxpayer shall
22 be allowed a credit against the tax imposed by
23 subsections (a) and (b) of this Section for certain
24 amounts paid for unreimbursed eligible remediation costs,
25 as specified in this subsection. For purposes of this
26 Section, "unreimbursed eligible remediation costs" means
27 costs approved by the Illinois Environmental Protection
28 Agency ("Agency") under Section 58.14 of the
29 Environmental Protection Act that were paid in performing
30 environmental remediation at a site accepted into the
31 Site Remediation Program that meets the criteria set
32 forth in Section 58.14 of the Illinois Environmental
33 Protection Act. The credit applies only to costs
34 incurred during the 10-year period following the
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1 acceptance of the site into the Site Remediation Program
2 unless an extension of this period is granted by the
3 Agency for which a No Further Remediation Letter was
4 issued by the Agency and recorded under Section 58.10 of
5 the Environmental Protection Act. The credit must be
6 claimed for the taxable year in which Agency approval of
7 the eligible remediation costs is granted. The credit is
8 not available to any taxpayer if the taxpayer or any
9 related party caused or contributed to, in any material
10 respect, a release of regulated substances on, in, or
11 under the site that is being was identified and addressed
12 by the remedial action pursuant to the Site Remediation
13 Program of the Environmental Protection Act. After the
14 Pollution Control Board rules are adopted pursuant to the
15 Illinois Administrative Procedure Act for the
16 administration and enforcement of Section 58.9 of the
17 Environmental Protection Act, determinations as to credit
18 availability for purposes of this Section shall be made
19 consistent with those rules. For purposes of this
20 Section, "taxpayer" includes a person whose tax
21 attributes the taxpayer has succeeded to under Section
22 381 of the Internal Revenue Code and "related party"
23 includes the persons disallowed a deduction for losses by
24 paragraphs (b), (c), and (f)(1) of Section 267 of the
25 Internal Revenue Code by virtue of being a related
26 taxpayer, as well as any of its partners. The credit
27 allowed against the tax imposed by subsections (a) and
28 (b) shall be equal to 100% 25% of the unreimbursed
29 eligible remediation costs, as set forth in Section 58.14
30 of the Environmental Protection Act in excess of $100,000
31 per site, except that the $100,000 threshold shall not
32 apply to any site contained in an enterprise zone as
33 determined by the Department of Commerce and Community
34 Affairs. The total credit allowed shall not exceed
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1 $40,000 per year with a maximum total of $150,000 per
2 site. For partners and shareholders of subchapter S
3 corporations, there shall be allowed a credit under this
4 subsection to be determined in accordance with the
5 determination of income and distributive share of income
6 under Sections 702 and 704 and of subchapter S of the
7 Internal Revenue Code.
8 (ii) Until the Agency issues a No Further
9 Remediation Letter for the site, no more than 75% of the
10 allowed credit may be claimed by the eligible taxpayer.
11 The remaining 25% in allowed tax credits may be claimed
12 following the issuance by the Agency of a No Further
13 Remediation Letter for the site.
14 (iii) (ii) A credit allowed under this subsection
15 that is unused in the year the credit is earned may be
16 carried forward to each of the 15 5 taxable years
17 following the year for which the credit is first earned
18 until it is used. The term "unused credit" does not
19 include any amounts of unreimbursed eligible remediation
20 costs in excess of the maximum credit per site authorized
21 under paragraph (i). This credit shall be applied first
22 to the earliest year for which there is a liability. If
23 there is a credit under this subsection from more than
24 one tax year that is available to offset a liability, the
25 earliest credit arising under this subsection shall be
26 applied first. The recipient of credits may assign, sell,
27 or transfer, in whole or in part, the tax credit allowed
28 under this subsection to any other person. A credit
29 allowed under this subsection may be sold to a buyer as
30 part of a sale of all or part of the remediation site for
31 which the credit was granted. The purchaser of a
32 remediation site and the tax credit shall succeed to the
33 unused credit and remaining carry-forward period of the
34 seller. To perfect the transfer, the assignor shall
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1 record the transfer in the chain of title for the site
2 and provide written notice to the Director of the
3 Illinois Department of Revenue of (i) the assignor's
4 intent to transfer the tax credits to the assignee, (ii)
5 the date the transfer is effective, (iii) the assignee's
6 name and address, (iv) the assignee's tax period, and (v)
7 the amount of tax credits to be transferred. The number
8 of tax periods during which the assignee may subsequently
9 claim the tax credits shall not exceed 15 tax periods,
10 less the number of tax periods the assignor previously
11 claimed the credits before the transfer occurred sell the
12 remediation site and the amount of the tax credit to be
13 transferred as a portion of the sale. In no event may a
14 credit be transferred to any taxpayer if the taxpayer or
15 a related party would not be eligible under the
16 provisions of subsection (i).
17 (iv) (iii) For purposes of this Section, the term
18 "site" shall have the same meaning as under Section 58.2
19 of the Environmental Protection Act.
20 The changes made to this subsection (l) by this
21 amendatory Act of the 92nd General Assembly apply to taxable
22 years ending on or after December 31, 2001.
23 (m) Education expense credit.
24 Beginning with tax years ending after December 31, 1999,
25 a taxpayer who is the custodian of one or more qualifying
26 pupils shall be allowed a credit against the tax imposed by
27 subsections (a) and (b) of this Section for qualified
28 education expenses incurred on behalf of the qualifying
29 pupils. The credit shall be equal to 25% of qualified
30 education expenses, but in no event may the total credit
31 under this Section claimed by a family that is the custodian
32 of qualifying pupils exceed $500. In no event shall a credit
33 under this subsection reduce the taxpayer's liability under
34 this Act to less than zero. This subsection is exempt from
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1 the provisions of Section 250 of this Act.
2 For purposes of this subsection;
3 "Qualifying pupils" means individuals who (i) are
4 residents of the State of Illinois, (ii) are under the age of
5 21 at the close of the school year for which a credit is
6 sought, and (iii) during the school year for which a credit
7 is sought were full-time pupils enrolled in a kindergarten
8 through twelfth grade education program at any school, as
9 defined in this subsection.
10 "Qualified education expense" means the amount incurred
11 on behalf of a qualifying pupil in excess of $250 for
12 tuition, book fees, and lab fees at the school in which the
13 pupil is enrolled during the regular school year.
14 "School" means any public or nonpublic elementary or
15 secondary school in Illinois that is in compliance with Title
16 VI of the Civil Rights Act of 1964 and attendance at which
17 satisfies the requirements of Section 26-1 of the School
18 Code, except that nothing shall be construed to require a
19 child to attend any particular public or nonpublic school to
20 qualify for the credit under this Section.
21 "Custodian" means, with respect to qualifying pupils, an
22 Illinois resident who is a parent, the parents, a legal
23 guardian, or the legal guardians of the qualifying pupils.
24 (Source: P.A. 90-123, eff. 7-21-97; 90-458, eff. 8-17-97;
25 90-605, eff. 6-30-98; 90-655, eff. 7-30-98; 90-717, eff.
26 8-7-98; 90-792, eff. 1-1-99; 91-9, eff. 1-1-00; 91-357, eff.
27 7-29-99; 91-643, eff. 8-20-99; 91-644, eff. 8-20-99; 91-860,
28 eff. 6-22-00; 91-913, eff. 1-1-01; revised 10-24-00.) as
29 follows:
30 (35 ILCS 5/203) (from Ch. 120, par. 2-203)
31 Sec. 203. Base income defined.
32 (a) Individuals.
33 (1) In general. In the case of an individual, base
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1 income means an amount equal to the taxpayer's adjusted
2 gross income for the taxable year as modified by
3 paragraph (2).
4 (2) Modifications. The adjusted gross income
5 referred to in paragraph (1) shall be modified by adding
6 thereto the sum of the following amounts:
7 (A) An amount equal to all amounts paid or
8 accrued to the taxpayer as interest or dividends
9 during the taxable year to the extent excluded from
10 gross income in the computation of adjusted gross
11 income, except stock dividends of qualified public
12 utilities described in Section 305(e) of the
13 Internal Revenue Code;
14 (B) An amount equal to the amount of tax
15 imposed by this Act to the extent deducted from
16 gross income in the computation of adjusted gross
17 income for the taxable year;
18 (C) An amount equal to the amount received
19 during the taxable year as a recovery or refund of
20 real property taxes paid with respect to the
21 taxpayer's principal residence under the Revenue Act
22 of 1939 and for which a deduction was previously
23 taken under subparagraph (L) of this paragraph (2)
24 prior to July 1, 1991, the retrospective application
25 date of Article 4 of Public Act 87-17. In the case
26 of multi-unit or multi-use structures and farm
27 dwellings, the taxes on the taxpayer's principal
28 residence shall be that portion of the total taxes
29 for the entire property which is attributable to
30 such principal residence;
31 (D) An amount equal to the amount of the
32 capital gain deduction allowable under the Internal
33 Revenue Code, to the extent deducted from gross
34 income in the computation of adjusted gross income;
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1 (D-5) An amount, to the extent not included in
2 adjusted gross income, equal to the amount of money
3 withdrawn by the taxpayer in the taxable year from a
4 medical care savings account and the interest earned
5 on the account in the taxable year of a withdrawal
6 pursuant to subsection (b) of Section 20 of the
7 Medical Care Savings Account Act or subsection (b)
8 of Section 20 of the Medical Care Savings Account
9 Act of 2000; and
10 (D-10) For taxable years ending after December
11 31, 1997, an amount equal to any eligible
12 remediation costs that the individual deducted in
13 computing adjusted gross income and for which the
14 individual claims a credit under subsection (l) of
15 Section 201;
16 and by deducting from the total so obtained the sum of
17 the following amounts:
18 (E) Any amount included in such total in
19 respect of any compensation (including but not
20 limited to any compensation paid or accrued to a
21 serviceman while a prisoner of war or missing in
22 action) paid to a resident by reason of being on
23 active duty in the Armed Forces of the United States
24 and in respect of any compensation paid or accrued
25 to a resident who as a governmental employee was a
26 prisoner of war or missing in action, and in respect
27 of any compensation paid to a resident in 1971 or
28 thereafter for annual training performed pursuant to
29 Sections 502 and 503, Title 32, United States Code
30 as a member of the Illinois National Guard;
31 (F) An amount equal to all amounts included in
32 such total pursuant to the provisions of Sections
33 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
34 408 of the Internal Revenue Code, or included in
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1 such total as distributions under the provisions of
2 any retirement or disability plan for employees of
3 any governmental agency or unit, or retirement
4 payments to retired partners, which payments are
5 excluded in computing net earnings from self
6 employment by Section 1402 of the Internal Revenue
7 Code and regulations adopted pursuant thereto;
8 (G) The valuation limitation amount;
9 (H) An amount equal to the amount of any tax
10 imposed by this Act which was refunded to the
11 taxpayer and included in such total for the taxable
12 year;
13 (I) An amount equal to all amounts included in
14 such total pursuant to the provisions of Section 111
15 of the Internal Revenue Code as a recovery of items
16 previously deducted from adjusted gross income in
17 the computation of taxable income;
18 (J) An amount equal to those dividends
19 included in such total which were paid by a
20 corporation which conducts business operations in an
21 Enterprise Zone or zones created under the Illinois
22 Enterprise Zone Act, and conducts substantially all
23 of its operations in an Enterprise Zone or zones;
24 (K) An amount equal to those dividends
25 included in such total that were paid by a
26 corporation that conducts business operations in a
27 federally designated Foreign Trade Zone or Sub-Zone
28 and that is designated a High Impact Business
29 located in Illinois; provided that dividends
30 eligible for the deduction provided in subparagraph
31 (J) of paragraph (2) of this subsection shall not be
32 eligible for the deduction provided under this
33 subparagraph (K);
34 (L) For taxable years ending after December
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1 31, 1983, an amount equal to all social security
2 benefits and railroad retirement benefits included
3 in such total pursuant to Sections 72(r) and 86 of
4 the Internal Revenue Code;
5 (M) With the exception of any amounts
6 subtracted under subparagraph (N), an amount equal
7 to the sum of all amounts disallowed as deductions
8 by (i) Sections 171(a) (2), and 265(2) of the
9 Internal Revenue Code of 1954, as now or hereafter
10 amended, and all amounts of expenses allocable to
11 interest and disallowed as deductions by Section
12 265(1) of the Internal Revenue Code of 1954, as now
13 or hereafter amended; and (ii) for taxable years
14 ending on or after August 13, 1999, Sections
15 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
16 Internal Revenue Code; the provisions of this
17 subparagraph are exempt from the provisions of
18 Section 250;
19 (N) An amount equal to all amounts included in
20 such total which are exempt from taxation by this
21 State either by reason of its statutes or
22 Constitution or by reason of the Constitution,
23 treaties or statutes of the United States; provided
24 that, in the case of any statute of this State that
25 exempts income derived from bonds or other
26 obligations from the tax imposed under this Act, the
27 amount exempted shall be the interest net of bond
28 premium amortization;
29 (O) An amount equal to any contribution made
30 to a job training project established pursuant to
31 the Tax Increment Allocation Redevelopment Act;
32 (P) An amount equal to the amount of the
33 deduction used to compute the federal income tax
34 credit for restoration of substantial amounts held
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1 under claim of right for the taxable year pursuant
2 to Section 1341 of the Internal Revenue Code of
3 1986;
4 (Q) An amount equal to any amounts included in
5 such total, received by the taxpayer as an
6 acceleration in the payment of life, endowment or
7 annuity benefits in advance of the time they would
8 otherwise be payable as an indemnity for a terminal
9 illness;
10 (R) An amount equal to the amount of any
11 federal or State bonus paid to veterans of the
12 Persian Gulf War;
13 (S) An amount, to the extent included in
14 adjusted gross income, equal to the amount of a
15 contribution made in the taxable year on behalf of
16 the taxpayer to a medical care savings account
17 established under the Medical Care Savings Account
18 Act or the Medical Care Savings Account Act of 2000
19 to the extent the contribution is accepted by the
20 account administrator as provided in that Act;
21 (T) An amount, to the extent included in
22 adjusted gross income, equal to the amount of
23 interest earned in the taxable year on a medical
24 care savings account established under the Medical
25 Care Savings Account Act or the Medical Care Savings
26 Account Act of 2000 on behalf of the taxpayer, other
27 than interest added pursuant to item (D-5) of this
28 paragraph (2);
29 (U) For one taxable year beginning on or after
30 January 1, 1994, an amount equal to the total amount
31 of tax imposed and paid under subsections (a) and
32 (b) of Section 201 of this Act on grant amounts
33 received by the taxpayer under the Nursing Home
34 Grant Assistance Act during the taxpayer's taxable
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1 years 1992 and 1993;
2 (V) Beginning with tax years ending on or
3 after December 31, 1995 and ending with tax years
4 ending on or before December 31, 2004, an amount
5 equal to the amount paid by a taxpayer who is a
6 self-employed taxpayer, a partner of a partnership,
7 or a shareholder in a Subchapter S corporation for
8 health insurance or long-term care insurance for
9 that taxpayer or that taxpayer's spouse or
10 dependents, to the extent that the amount paid for
11 that health insurance or long-term care insurance
12 may be deducted under Section 213 of the Internal
13 Revenue Code of 1986, has not been deducted on the
14 federal income tax return of the taxpayer, and does
15 not exceed the taxable income attributable to that
16 taxpayer's income, self-employment income, or
17 Subchapter S corporation income; except that no
18 deduction shall be allowed under this item (V) if
19 the taxpayer is eligible to participate in any
20 health insurance or long-term care insurance plan of
21 an employer of the taxpayer or the taxpayer's
22 spouse. The amount of the health insurance and
23 long-term care insurance subtracted under this item
24 (V) shall be determined by multiplying total health
25 insurance and long-term care insurance premiums paid
26 by the taxpayer times a number that represents the
27 fractional percentage of eligible medical expenses
28 under Section 213 of the Internal Revenue Code of
29 1986 not actually deducted on the taxpayer's federal
30 income tax return;
31 (W) For taxable years beginning on or after
32 January 1, 1998, all amounts included in the
33 taxpayer's federal gross income in the taxable year
34 from amounts converted from a regular IRA to a Roth
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1 IRA. This paragraph is exempt from the provisions of
2 Section 250; and
3 (X) For taxable year 1999 and thereafter, an
4 amount equal to the amount of any (i) distributions,
5 to the extent includible in gross income for federal
6 income tax purposes, made to the taxpayer because of
7 his or her status as a victim of persecution for
8 racial or religious reasons by Nazi Germany or any
9 other Axis regime or as an heir of the victim and
10 (ii) items of income, to the extent includible in
11 gross income for federal income tax purposes,
12 attributable to, derived from or in any way related
13 to assets stolen from, hidden from, or otherwise
14 lost to a victim of persecution for racial or
15 religious reasons by Nazi Germany or any other Axis
16 regime immediately prior to, during, and immediately
17 after World War II, including, but not limited to,
18 interest on the proceeds receivable as insurance
19 under policies issued to a victim of persecution for
20 racial or religious reasons by Nazi Germany or any
21 other Axis regime by European insurance companies
22 immediately prior to and during World War II;
23 provided, however, this subtraction from federal
24 adjusted gross income does not apply to assets
25 acquired with such assets or with the proceeds from
26 the sale of such assets; provided, further, this
27 paragraph shall only apply to a taxpayer who was the
28 first recipient of such assets after their recovery
29 and who is a victim of persecution for racial or
30 religious reasons by Nazi Germany or any other Axis
31 regime or as an heir of the victim. The amount of
32 and the eligibility for any public assistance,
33 benefit, or similar entitlement is not affected by
34 the inclusion of items (i) and (ii) of this
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1 paragraph in gross income for federal income tax
2 purposes. This paragraph is exempt from the
3 provisions of Section 250;
4 (Y) Beginning with taxable years ending on or
5 after December 31, 2001, for taxpayers 62 years of
6 age and older, an amount equal to all amounts the
7 taxpayer pays during the taxable year for Medicare
8 Part B benefits under Title XVIII of the federal
9 Social Security Act for costs of, including but not
10 limited to, physician services, outpatient hospital
11 services, medical equipment and supplies, and other
12 health services and supplies. This subparagraph (Y)
13 is exempt from the provisions of Section 250;
14 (Z) Beginning with tax years ending on or
15 after December 31, 2001, and ending with tax years
16 ending on or before December 31, 2010, all
17 unreimbursed amounts, but not more than a total
18 amount that would result in a tax liability of less
19 than zero for the taxpayer, expended by persons 65
20 years of age or older for home health services, as
21 defined by Section 2.05 of the Home Health Agency
22 Licensing Act, if provided by a public or private
23 organization licensed under that Act, or for
24 services provided to a person at that person's
25 residence by a licensed practical nurse or
26 registered nurse in accordance with a plan of
27 treatment for illness or infirmity prescribed by a
28 physician;
29 (AA) For taxable years ending on or after
30 December 31, 2001, all amounts included in the
31 taxpayer's federal gross income in the taxable year
32 from amounts contributed to a Roth IRA. This
33 subparagraph (AA) is exempt from the provisions of
34 Section 250; and
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1 (BB) For taxable years ending on or after
2 December 31, 2001, up to $5,000 paid by the taxpayer
3 for dependent care provided for a child, disabled
4 spouse, or other dependent adult during the taxable
5 year. No amount paid or incurred for dependent care
6 shall be deducted unless (i) the name, address, and
7 taxpayer identification number of the person
8 performing the services are included on the return
9 to which the deduction relates or (ii) if the person
10 performing the services is an organization described
11 in Section 501(c)(3) of the Internal Revenue Code
12 and is exempt from tax under Section 501(a) of the
13 Internal Revenue Code, the name and address of the
14 person are included on the return to which the
15 deduction relates. This subparagraph (BB) is exempt
16 from the provisions of Section 250.
17 (CC) Beginning with taxable years ending on or
18 after December 31, 2001, $500 for a person holding
19 a teaching certificate issued under the School Code
20 and employed as a teacher in a public school
21 district governed by the School Code.
22 (b) Corporations.
23 (1) In general. In the case of a corporation, base
24 income means an amount equal to the taxpayer's taxable
25 income for the taxable year as modified by paragraph (2).
26 (2) Modifications. The taxable income referred to
27 in paragraph (1) shall be modified by adding thereto the
28 sum of the following amounts:
29 (A) An amount equal to all amounts paid or
30 accrued to the taxpayer as interest and all
31 distributions received from regulated investment
32 companies during the taxable year to the extent
33 excluded from gross income in the computation of
34 taxable income;
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1 (B) An amount equal to the amount of tax
2 imposed by this Act to the extent deducted from
3 gross income in the computation of taxable income
4 for the taxable year;
5 (C) In the case of a regulated investment
6 company, an amount equal to the excess of (i) the
7 net long-term capital gain for the taxable year,
8 over (ii) the amount of the capital gain dividends
9 designated as such in accordance with Section
10 852(b)(3)(C) of the Internal Revenue Code and any
11 amount designated under Section 852(b)(3)(D) of the
12 Internal Revenue Code, attributable to the taxable
13 year (this amendatory Act of 1995 (Public Act 89-89)
14 is declarative of existing law and is not a new
15 enactment);
16 (D) The amount of any net operating loss
17 deduction taken in arriving at taxable income, other
18 than a net operating loss carried forward from a
19 taxable year ending prior to December 31, 1986;
20 (E) For taxable years in which a net operating
21 loss carryback or carryforward from a taxable year
22 ending prior to December 31, 1986 is an element of
23 taxable income under paragraph (1) of subsection (e)
24 or subparagraph (E) of paragraph (2) of subsection
25 (e), the amount by which addition modifications
26 other than those provided by this subparagraph (E)
27 exceeded subtraction modifications in such earlier
28 taxable year, with the following limitations applied
29 in the order that they are listed:
30 (i) the addition modification relating to
31 the net operating loss carried back or forward
32 to the taxable year from any taxable year
33 ending prior to December 31, 1986 shall be
34 reduced by the amount of addition modification
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1 under this subparagraph (E) which related to
2 that net operating loss and which was taken
3 into account in calculating the base income of
4 an earlier taxable year, and
5 (ii) the addition modification relating
6 to the net operating loss carried back or
7 forward to the taxable year from any taxable
8 year ending prior to December 31, 1986 shall
9 not exceed the amount of such carryback or
10 carryforward;
11 For taxable years in which there is a net
12 operating loss carryback or carryforward from more
13 than one other taxable year ending prior to December
14 31, 1986, the addition modification provided in this
15 subparagraph (E) shall be the sum of the amounts
16 computed independently under the preceding
17 provisions of this subparagraph (E) for each such
18 taxable year; and
19 (E-5) For taxable years ending after December
20 31, 1997, an amount equal to any eligible
21 remediation costs that the corporation deducted in
22 computing adjusted gross income and for which the
23 corporation claims a credit under subsection (l) of
24 Section 201;
25 and by deducting from the total so obtained the sum of
26 the following amounts:
27 (F) An amount equal to the amount of any tax
28 imposed by this Act which was refunded to the
29 taxpayer and included in such total for the taxable
30 year;
31 (G) An amount equal to any amount included in
32 such total under Section 78 of the Internal Revenue
33 Code;
34 (H) In the case of a regulated investment
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1 company, an amount equal to the amount of exempt
2 interest dividends as defined in subsection (b) (5)
3 of Section 852 of the Internal Revenue Code, paid to
4 shareholders for the taxable year;
5 (I) With the exception of any amounts
6 subtracted under subparagraph (J), an amount equal
7 to the sum of all amounts disallowed as deductions
8 by (i) Sections 171(a) (2), and 265(a)(2) and
9 amounts disallowed as interest expense by Section
10 291(a)(3) of the Internal Revenue Code, as now or
11 hereafter amended, and all amounts of expenses
12 allocable to interest and disallowed as deductions
13 by Section 265(a)(1) of the Internal Revenue Code,
14 as now or hereafter amended; and (ii) for taxable
15 years ending on or after August 13, 1999, Sections
16 171(a)(2), 265, 280C, 291(a)(3), and 832(b)(5)(B)(i)
17 of the Internal Revenue Code; the provisions of this
18 subparagraph are exempt from the provisions of
19 Section 250;
20 (J) An amount equal to all amounts included in
21 such total which are exempt from taxation by this
22 State either by reason of its statutes or
23 Constitution or by reason of the Constitution,
24 treaties or statutes of the United States; provided
25 that, in the case of any statute of this State that
26 exempts income derived from bonds or other
27 obligations from the tax imposed under this Act, the
28 amount exempted shall be the interest net of bond
29 premium amortization;
30 (K) An amount equal to those dividends
31 included in such total which were paid by a
32 corporation which conducts business operations in an
33 Enterprise Zone or zones created under the Illinois
34 Enterprise Zone Act and conducts substantially all
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1 of its operations in an Enterprise Zone or zones;
2 (L) An amount equal to those dividends
3 included in such total that were paid by a
4 corporation that conducts business operations in a
5 federally designated Foreign Trade Zone or Sub-Zone
6 and that is designated a High Impact Business
7 located in Illinois; provided that dividends
8 eligible for the deduction provided in subparagraph
9 (K) of paragraph 2 of this subsection shall not be
10 eligible for the deduction provided under this
11 subparagraph (L);
12 (M) For any taxpayer that is a financial
13 organization within the meaning of Section 304(c) of
14 this Act, an amount included in such total as
15 interest income from a loan or loans made by such
16 taxpayer to a borrower, to the extent that such a
17 loan is secured by property which is eligible for
18 the Enterprise Zone Investment Credit. To determine
19 the portion of a loan or loans that is secured by
20 property eligible for a Section 201(f) 201(h)
21 investment credit to the borrower, the entire
22 principal amount of the loan or loans between the
23 taxpayer and the borrower should be divided into the
24 basis of the Section 201(f) 201(h) investment credit
25 property which secures the loan or loans, using for
26 this purpose the original basis of such property on
27 the date that it was placed in service in the
28 Enterprise Zone. The subtraction modification
29 available to taxpayer in any year under this
30 subsection shall be that portion of the total
31 interest paid by the borrower with respect to such
32 loan attributable to the eligible property as
33 calculated under the previous sentence;
34 (M-1) For any taxpayer that is a financial
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1 organization within the meaning of Section 304(c) of
2 this Act, an amount included in such total as
3 interest income from a loan or loans made by such
4 taxpayer to a borrower, to the extent that such a
5 loan is secured by property which is eligible for
6 the High Impact Business Investment Credit. To
7 determine the portion of a loan or loans that is
8 secured by property eligible for a Section 201(h)
9 201(i) investment credit to the borrower, the entire
10 principal amount of the loan or loans between the
11 taxpayer and the borrower should be divided into the
12 basis of the Section 201(h) 201(i) investment credit
13 property which secures the loan or loans, using for
14 this purpose the original basis of such property on
15 the date that it was placed in service in a
16 federally designated Foreign Trade Zone or Sub-Zone
17 located in Illinois. No taxpayer that is eligible
18 for the deduction provided in subparagraph (M) of
19 paragraph (2) of this subsection shall be eligible
20 for the deduction provided under this subparagraph
21 (M-1). The subtraction modification available to
22 taxpayers in any year under this subsection shall be
23 that portion of the total interest paid by the
24 borrower with respect to such loan attributable to
25 the eligible property as calculated under the
26 previous sentence;
27 (N) Two times any contribution made during the
28 taxable year to a designated zone organization to
29 the extent that the contribution (i) qualifies as a
30 charitable contribution under subsection (c) of
31 Section 170 of the Internal Revenue Code and (ii)
32 must, by its terms, be used for a project approved
33 by the Department of Commerce and Community Affairs
34 under Section 11 of the Illinois Enterprise Zone
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1 Act;
2 (O) An amount equal to: (i) 85% for taxable
3 years ending on or before December 31, 1992, or, a
4 percentage equal to the percentage allowable under
5 Section 243(a)(1) of the Internal Revenue Code of
6 1986 for taxable years ending after December 31,
7 1992, of the amount by which dividends included in
8 taxable income and received from a corporation that
9 is not created or organized under the laws of the
10 United States or any state or political subdivision
11 thereof, including, for taxable years ending on or
12 after December 31, 1988, dividends received or
13 deemed received or paid or deemed paid under
14 Sections 951 through 964 of the Internal Revenue
15 Code, exceed the amount of the modification provided
16 under subparagraph (G) of paragraph (2) of this
17 subsection (b) which is related to such dividends;
18 plus (ii) 100% of the amount by which dividends,
19 included in taxable income and received, including,
20 for taxable years ending on or after December 31,
21 1988, dividends received or deemed received or paid
22 or deemed paid under Sections 951 through 964 of the
23 Internal Revenue Code, from any such corporation
24 specified in clause (i) that would but for the
25 provisions of Section 1504 (b) (3) of the Internal
26 Revenue Code be treated as a member of the
27 affiliated group which includes the dividend
28 recipient, exceed the amount of the modification
29 provided under subparagraph (G) of paragraph (2) of
30 this subsection (b) which is related to such
31 dividends;
32 (P) An amount equal to any contribution made
33 to a job training project established pursuant to
34 the Tax Increment Allocation Redevelopment Act;
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1 (Q) An amount equal to the amount of the
2 deduction used to compute the federal income tax
3 credit for restoration of substantial amounts held
4 under claim of right for the taxable year pursuant
5 to Section 1341 of the Internal Revenue Code of
6 1986;
7 (R) In the case of an attorney-in-fact with
8 respect to whom an interinsurer or a reciprocal
9 insurer has made the election under Section 835 of
10 the Internal Revenue Code, 26 U.S.C. 835, an amount
11 equal to the excess, if any, of the amounts paid or
12 incurred by that interinsurer or reciprocal insurer
13 in the taxable year to the attorney-in-fact over the
14 deduction allowed to that interinsurer or reciprocal
15 insurer with respect to the attorney-in-fact under
16 Section 835(b) of the Internal Revenue Code for the
17 taxable year; and
18 (S) For taxable years ending on or after
19 December 31, 1997, in the case of a Subchapter S
20 corporation, an amount equal to all amounts of
21 income allocable to a shareholder subject to the
22 Personal Property Tax Replacement Income Tax imposed
23 by subsections (c) and (d) of Section 201 of this
24 Act, including amounts allocable to organizations
25 exempt from federal income tax by reason of Section
26 501(a) of the Internal Revenue Code. This
27 subparagraph (S) is exempt from the provisions of
28 Section 250.
29 (3) Special rule. For purposes of paragraph (2)
30 (A), "gross income" in the case of a life insurance
31 company, for tax years ending on and after December 31,
32 1994, shall mean the gross investment income for the
33 taxable year.
34 (c) Trusts and estates.
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1 (1) In general. In the case of a trust or estate,
2 base income means an amount equal to the taxpayer's
3 taxable income for the taxable year as modified by
4 paragraph (2).
5 (2) Modifications. Subject to the provisions of
6 paragraph (3), the taxable income referred to in
7 paragraph (1) shall be modified by adding thereto the sum
8 of the following amounts:
9 (A) An amount equal to all amounts paid or
10 accrued to the taxpayer as interest or dividends
11 during the taxable year to the extent excluded from
12 gross income in the computation of taxable income;
13 (B) In the case of (i) an estate, $600; (ii) a
14 trust which, under its governing instrument, is
15 required to distribute all of its income currently,
16 $300; and (iii) any other trust, $100, but in each
17 such case, only to the extent such amount was
18 deducted in the computation of taxable income;
19 (C) An amount equal to the amount of tax
20 imposed by this Act to the extent deducted from
21 gross income in the computation of taxable income
22 for the taxable year;
23 (D) The amount of any net operating loss
24 deduction taken in arriving at taxable income, other
25 than a net operating loss carried forward from a
26 taxable year ending prior to December 31, 1986;
27 (E) For taxable years in which a net operating
28 loss carryback or carryforward from a taxable year
29 ending prior to December 31, 1986 is an element of
30 taxable income under paragraph (1) of subsection (e)
31 or subparagraph (E) of paragraph (2) of subsection
32 (e), the amount by which addition modifications
33 other than those provided by this subparagraph (E)
34 exceeded subtraction modifications in such taxable
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1 year, with the following limitations applied in the
2 order that they are listed:
3 (i) the addition modification relating to
4 the net operating loss carried back or forward
5 to the taxable year from any taxable year
6 ending prior to December 31, 1986 shall be
7 reduced by the amount of addition modification
8 under this subparagraph (E) which related to
9 that net operating loss and which was taken
10 into account in calculating the base income of
11 an earlier taxable year, and
12 (ii) the addition modification relating
13 to the net operating loss carried back or
14 forward to the taxable year from any taxable
15 year ending prior to December 31, 1986 shall
16 not exceed the amount of such carryback or
17 carryforward;
18 For taxable years in which there is a net
19 operating loss carryback or carryforward from more
20 than one other taxable year ending prior to December
21 31, 1986, the addition modification provided in this
22 subparagraph (E) shall be the sum of the amounts
23 computed independently under the preceding
24 provisions of this subparagraph (E) for each such
25 taxable year;
26 (F) For taxable years ending on or after
27 January 1, 1989, an amount equal to the tax deducted
28 pursuant to Section 164 of the Internal Revenue Code
29 if the trust or estate is claiming the same tax for
30 purposes of the Illinois foreign tax credit under
31 Section 601 of this Act;
32 (G) An amount equal to the amount of the
33 capital gain deduction allowable under the Internal
34 Revenue Code, to the extent deducted from gross
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1 income in the computation of taxable income; and
2 (G-5) For taxable years ending after December
3 31, 1997, an amount equal to any eligible
4 remediation costs that the trust or estate deducted
5 in computing adjusted gross income and for which the
6 trust or estate claims a credit under subsection (l)
7 of Section 201;
8 and by deducting from the total so obtained the sum of
9 the following amounts:
10 (H) An amount equal to all amounts included in
11 such total pursuant to the provisions of Sections
12 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and
13 408 of the Internal Revenue Code or included in such
14 total as distributions under the provisions of any
15 retirement or disability plan for employees of any
16 governmental agency or unit, or retirement payments
17 to retired partners, which payments are excluded in
18 computing net earnings from self employment by
19 Section 1402 of the Internal Revenue Code and
20 regulations adopted pursuant thereto;
21 (I) The valuation limitation amount;
22 (J) An amount equal to the amount of any tax
23 imposed by this Act which was refunded to the
24 taxpayer and included in such total for the taxable
25 year;
26 (K) An amount equal to all amounts included in
27 taxable income as modified by subparagraphs (A),
28 (B), (C), (D), (E), (F) and (G) which are exempt
29 from taxation by this State either by reason of its
30 statutes or Constitution or by reason of the
31 Constitution, treaties or statutes of the United
32 States; provided that, in the case of any statute of
33 this State that exempts income derived from bonds or
34 other obligations from the tax imposed under this
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1 Act, the amount exempted shall be the interest net
2 of bond premium amortization;
3 (L) With the exception of any amounts
4 subtracted under subparagraph (K), an amount equal
5 to the sum of all amounts disallowed as deductions
6 by (i) Sections 171(a) (2) and 265(a)(2) of the
7 Internal Revenue Code, as now or hereafter amended,
8 and all amounts of expenses allocable to interest
9 and disallowed as deductions by Section 265(1) of
10 the Internal Revenue Code of 1954, as now or
11 hereafter amended; and (ii) for taxable years ending
12 on or after August 13, 1999, Sections 171(a)(2),
13 265, 280C, and 832(b)(5)(B)(i) of the Internal
14 Revenue Code; the provisions of this subparagraph
15 are exempt from the provisions of Section 250;
16 (M) An amount equal to those dividends
17 included in such total which were paid by a
18 corporation which conducts business operations in an
19 Enterprise Zone or zones created under the Illinois
20 Enterprise Zone Act and conducts substantially all
21 of its operations in an Enterprise Zone or Zones;
22 (N) An amount equal to any contribution made
23 to a job training project established pursuant to
24 the Tax Increment Allocation Redevelopment Act;
25 (O) An amount equal to those dividends
26 included in such total that were paid by a
27 corporation that conducts business operations in a
28 federally designated Foreign Trade Zone or Sub-Zone
29 and that is designated a High Impact Business
30 located in Illinois; provided that dividends
31 eligible for the deduction provided in subparagraph
32 (M) of paragraph (2) of this subsection shall not be
33 eligible for the deduction provided under this
34 subparagraph (O);
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1 (P) An amount equal to the amount of the
2 deduction used to compute the federal income tax
3 credit for restoration of substantial amounts held
4 under claim of right for the taxable year pursuant
5 to Section 1341 of the Internal Revenue Code of
6 1986; and
7 (Q) For taxable year 1999 and thereafter, an
8 amount equal to the amount of any (i) distributions,
9 to the extent includible in gross income for federal
10 income tax purposes, made to the taxpayer because of
11 his or her status as a victim of persecution for
12 racial or religious reasons by Nazi Germany or any
13 other Axis regime or as an heir of the victim and
14 (ii) items of income, to the extent includible in
15 gross income for federal income tax purposes,
16 attributable to, derived from or in any way related
17 to assets stolen from, hidden from, or otherwise
18 lost to a victim of persecution for racial or
19 religious reasons by Nazi Germany or any other Axis
20 regime immediately prior to, during, and immediately
21 after World War II, including, but not limited to,
22 interest on the proceeds receivable as insurance
23 under policies issued to a victim of persecution for
24 racial or religious reasons by Nazi Germany or any
25 other Axis regime by European insurance companies
26 immediately prior to and during World War II;
27 provided, however, this subtraction from federal
28 adjusted gross income does not apply to assets
29 acquired with such assets or with the proceeds from
30 the sale of such assets; provided, further, this
31 paragraph shall only apply to a taxpayer who was the
32 first recipient of such assets after their recovery
33 and who is a victim of persecution for racial or
34 religious reasons by Nazi Germany or any other Axis
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1 regime or as an heir of the victim. The amount of
2 and the eligibility for any public assistance,
3 benefit, or similar entitlement is not affected by
4 the inclusion of items (i) and (ii) of this
5 paragraph in gross income for federal income tax
6 purposes. This paragraph is exempt from the
7 provisions of Section 250.
8 (3) Limitation. The amount of any modification
9 otherwise required under this subsection shall, under
10 regulations prescribed by the Department, be adjusted by
11 any amounts included therein which were properly paid,
12 credited, or required to be distributed, or permanently
13 set aside for charitable purposes pursuant to Internal
14 Revenue Code Section 642(c) during the taxable year.
15 (d) Partnerships.
16 (1) In general. In the case of a partnership, base
17 income means an amount equal to the taxpayer's taxable
18 income for the taxable year as modified by paragraph (2).
19 (2) Modifications. The taxable income referred to
20 in paragraph (1) shall be modified by adding thereto the
21 sum of the following amounts:
22 (A) An amount equal to all amounts paid or
23 accrued to the taxpayer as interest or dividends
24 during the taxable year to the extent excluded from
25 gross income in the computation of taxable income;
26 (B) An amount equal to the amount of tax
27 imposed by this Act to the extent deducted from
28 gross income for the taxable year;
29 (C) The amount of deductions allowed to the
30 partnership pursuant to Section 707 (c) of the
31 Internal Revenue Code in calculating its taxable
32 income; and
33 (D) An amount equal to the amount of the
34 capital gain deduction allowable under the Internal
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1 Revenue Code, to the extent deducted from gross
2 income in the computation of taxable income;
3 and by deducting from the total so obtained the following
4 amounts:
5 (E) The valuation limitation amount;
6 (F) An amount equal to the amount of any tax
7 imposed by this Act which was refunded to the
8 taxpayer and included in such total for the taxable
9 year;
10 (G) An amount equal to all amounts included in
11 taxable income as modified by subparagraphs (A),
12 (B), (C) and (D) which are exempt from taxation by
13 this State either by reason of its statutes or
14 Constitution or by reason of the Constitution,
15 treaties or statutes of the United States; provided
16 that, in the case of any statute of this State that
17 exempts income derived from bonds or other
18 obligations from the tax imposed under this Act, the
19 amount exempted shall be the interest net of bond
20 premium amortization;
21 (H) Any income of the partnership which
22 constitutes personal service income as defined in
23 Section 1348 (b) (1) of the Internal Revenue Code
24 (as in effect December 31, 1981) or a reasonable
25 allowance for compensation paid or accrued for
26 services rendered by partners to the partnership,
27 whichever is greater;
28 (I) An amount equal to all amounts of income
29 distributable to an entity subject to the Personal
30 Property Tax Replacement Income Tax imposed by
31 subsections (c) and (d) of Section 201 of this Act
32 including amounts distributable to organizations
33 exempt from federal income tax by reason of Section
34 501(a) of the Internal Revenue Code;
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1 (J) With the exception of any amounts
2 subtracted under subparagraph (G), an amount equal
3 to the sum of all amounts disallowed as deductions
4 by (i) Sections 171(a) (2), and 265(2) of the
5 Internal Revenue Code of 1954, as now or hereafter
6 amended, and all amounts of expenses allocable to
7 interest and disallowed as deductions by Section
8 265(1) of the Internal Revenue Code, as now or
9 hereafter amended; and (ii) for taxable years ending
10 on or after August 13, 1999, Sections 171(a)(2),
11 265, 280C, and 832(b)(5)(B)(i) of the Internal
12 Revenue Code; the provisions of this subparagraph
13 are exempt from the provisions of Section 250;
14 (K) An amount equal to those dividends
15 included in such total which were paid by a
16 corporation which conducts business operations in an
17 Enterprise Zone or zones created under the Illinois
18 Enterprise Zone Act, enacted by the 82nd General
19 Assembly, and which does not conduct such operations
20 other than in an Enterprise Zone or Zones;
21 (L) An amount equal to any contribution made
22 to a job training project established pursuant to
23 the Real Property Tax Increment Allocation
24 Redevelopment Act;
25 (M) An amount equal to those dividends
26 included in such total that were paid by a
27 corporation that conducts business operations in a
28 federally designated Foreign Trade Zone or Sub-Zone
29 and that is designated a High Impact Business
30 located in Illinois; provided that dividends
31 eligible for the deduction provided in subparagraph
32 (K) of paragraph (2) of this subsection shall not be
33 eligible for the deduction provided under this
34 subparagraph (M); and
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1 (N) An amount equal to the amount of the
2 deduction used to compute the federal income tax
3 credit for restoration of substantial amounts held
4 under claim of right for the taxable year pursuant
5 to Section 1341 of the Internal Revenue Code of
6 1986.
7 (e) Gross income; adjusted gross income; taxable income.
8 (1) In general. Subject to the provisions of
9 paragraph (2) and subsection (b) (3), for purposes of
10 this Section and Section 803(e), a taxpayer's gross
11 income, adjusted gross income, or taxable income for the
12 taxable year shall mean the amount of gross income,
13 adjusted gross income or taxable income properly
14 reportable for federal income tax purposes for the
15 taxable year under the provisions of the Internal Revenue
16 Code. Taxable income may be less than zero. However, for
17 taxable years ending on or after December 31, 1986, net
18 operating loss carryforwards from taxable years ending
19 prior to December 31, 1986, may not exceed the sum of
20 federal taxable income for the taxable year before net
21 operating loss deduction, plus the excess of addition
22 modifications over subtraction modifications for the
23 taxable year. For taxable years ending prior to December
24 31, 1986, taxable income may never be an amount in excess
25 of the net operating loss for the taxable year as defined
26 in subsections (c) and (d) of Section 172 of the Internal
27 Revenue Code, provided that when taxable income of a
28 corporation (other than a Subchapter S corporation),
29 trust, or estate is less than zero and addition
30 modifications, other than those provided by subparagraph
31 (E) of paragraph (2) of subsection (b) for corporations
32 or subparagraph (E) of paragraph (2) of subsection (c)
33 for trusts and estates, exceed subtraction modifications,
34 an addition modification must be made under those
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1 subparagraphs for any other taxable year to which the
2 taxable income less than zero (net operating loss) is
3 applied under Section 172 of the Internal Revenue Code or
4 under subparagraph (E) of paragraph (2) of this
5 subsection (e) applied in conjunction with Section 172 of
6 the Internal Revenue Code.
7 (2) Special rule. For purposes of paragraph (1) of
8 this subsection, the taxable income properly reportable
9 for federal income tax purposes shall mean:
10 (A) Certain life insurance companies. In the
11 case of a life insurance company subject to the tax
12 imposed by Section 801 of the Internal Revenue Code,
13 life insurance company taxable income, plus the
14 amount of distribution from pre-1984 policyholder
15 surplus accounts as calculated under Section 815a of
16 the Internal Revenue Code;
17 (B) Certain other insurance companies. In the
18 case of mutual insurance companies subject to the
19 tax imposed by Section 831 of the Internal Revenue
20 Code, insurance company taxable income;
21 (C) Regulated investment companies. In the
22 case of a regulated investment company subject to
23 the tax imposed by Section 852 of the Internal
24 Revenue Code, investment company taxable income;
25 (D) Real estate investment trusts. In the
26 case of a real estate investment trust subject to
27 the tax imposed by Section 857 of the Internal
28 Revenue Code, real estate investment trust taxable
29 income;
30 (E) Consolidated corporations. In the case of
31 a corporation which is a member of an affiliated
32 group of corporations filing a consolidated income
33 tax return for the taxable year for federal income
34 tax purposes, taxable income determined as if such
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1 corporation had filed a separate return for federal
2 income tax purposes for the taxable year and each
3 preceding taxable year for which it was a member of
4 an affiliated group. For purposes of this
5 subparagraph, the taxpayer's separate taxable income
6 shall be determined as if the election provided by
7 Section 243(b) (2) of the Internal Revenue Code had
8 been in effect for all such years;
9 (F) Cooperatives. In the case of a
10 cooperative corporation or association, the taxable
11 income of such organization determined in accordance
12 with the provisions of Section 1381 through 1388 of
13 the Internal Revenue Code;
14 (G) Subchapter S corporations. In the case
15 of: (i) a Subchapter S corporation for which there
16 is in effect an election for the taxable year under
17 Section 1362 of the Internal Revenue Code, the
18 taxable income of such corporation determined in
19 accordance with Section 1363(b) of the Internal
20 Revenue Code, except that taxable income shall take
21 into account those items which are required by
22 Section 1363(b)(1) of the Internal Revenue Code to
23 be separately stated; and (ii) a Subchapter S
24 corporation for which there is in effect a federal
25 election to opt out of the provisions of the
26 Subchapter S Revision Act of 1982 and have applied
27 instead the prior federal Subchapter S rules as in
28 effect on July 1, 1982, the taxable income of such
29 corporation determined in accordance with the
30 federal Subchapter S rules as in effect on July 1,
31 1982; and
32 (H) Partnerships. In the case of a
33 partnership, taxable income determined in accordance
34 with Section 703 of the Internal Revenue Code,
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1 except that taxable income shall take into account
2 those items which are required by Section 703(a)(1)
3 to be separately stated but which would be taken
4 into account by an individual in calculating his
5 taxable income.
6 (f) Valuation limitation amount.
7 (1) In general. The valuation limitation amount
8 referred to in subsections (a) (2) (G), (c) (2) (I) and
9 (d)(2) (E) is an amount equal to:
10 (A) The sum of the pre-August 1, 1969
11 appreciation amounts (to the extent consisting of
12 gain reportable under the provisions of Section 1245
13 or 1250 of the Internal Revenue Code) for all
14 property in respect of which such gain was reported
15 for the taxable year; plus
16 (B) The lesser of (i) the sum of the
17 pre-August 1, 1969 appreciation amounts (to the
18 extent consisting of capital gain) for all property
19 in respect of which such gain was reported for
20 federal income tax purposes for the taxable year, or
21 (ii) the net capital gain for the taxable year,
22 reduced in either case by any amount of such gain
23 included in the amount determined under subsection
24 (a) (2) (F) or (c) (2) (H).
25 (2) Pre-August 1, 1969 appreciation amount.
26 (A) If the fair market value of property
27 referred to in paragraph (1) was readily
28 ascertainable on August 1, 1969, the pre-August 1,
29 1969 appreciation amount for such property is the
30 lesser of (i) the excess of such fair market value
31 over the taxpayer's basis (for determining gain) for
32 such property on that date (determined under the
33 Internal Revenue Code as in effect on that date), or
34 (ii) the total gain realized and reportable for
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1 federal income tax purposes in respect of the sale,
2 exchange or other disposition of such property.
3 (B) If the fair market value of property
4 referred to in paragraph (1) was not readily
5 ascertainable on August 1, 1969, the pre-August 1,
6 1969 appreciation amount for such property is that
7 amount which bears the same ratio to the total gain
8 reported in respect of the property for federal
9 income tax purposes for the taxable year, as the
10 number of full calendar months in that part of the
11 taxpayer's holding period for the property ending
12 July 31, 1969 bears to the number of full calendar
13 months in the taxpayer's entire holding period for
14 the property.
15 (C) The Department shall prescribe such
16 regulations as may be necessary to carry out the
17 purposes of this paragraph.
18 (g) Double deductions. Unless specifically provided
19 otherwise, nothing in this Section shall permit the same item
20 to be deducted more than once.
21 (h) Legislative intention. Except as expressly provided
22 by this Section there shall be no modifications or
23 limitations on the amounts of income, gain, loss or deduction
24 taken into account in determining gross income, adjusted
25 gross income or taxable income for federal income tax
26 purposes for the taxable year, or in the amount of such items
27 entering into the computation of base income and net income
28 under this Act for such taxable year, whether in respect of
29 property values as of August 1, 1969 or otherwise.
30 (Source: P.A. 90-491, eff. 1-1-98; 90-717, eff. 8-7-98;
31 90-770, eff. 8-14-98; 91-192, eff. 7-20-99; 91-205, eff.
32 7-20-99; 91-357, eff. 7-29-99; 91-541, eff. 8-13-99; 91-676,
33 eff. 12-23-99; 91-845, eff. 6-22-00; 91-913, eff. 1-1-01;
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1 revised 1-15-01.)
2 (35 ILCS 5/204) (from Ch. 120, par. 2-204)
3 Sec. 204. Standard Exemption.
4 (a) Allowance of exemption. In computing net income
5 under this Act, there shall be allowed as an exemption the
6 sum of the amounts determined under subsections (b), (c) and
7 (d), multiplied by a fraction the numerator of which is the
8 amount of the taxpayer's base income allocable to this State
9 for the taxable year and the denominator of which is the
10 taxpayer's total base income for the taxable year.
11 (b) Basic amount. For the purpose of subsection (a) of
12 this Section, except as provided by subsection (a) of Section
13 205 and in this subsection, each taxpayer shall be allowed a
14 basic amount of $1000, except that for individuals the basic
15 amount shall be:
16 (1) for taxable years ending on or after December
17 31, 1998 and prior to December 31, 1999, $1,300;
18 (2) for taxable years ending on or after December
19 31, 1999 and prior to December 31, 2000, $1,650;
20 (3) for taxable years ending on or after December
21 31, 2000 and prior to December 31, 2001, $2,000; and
22 (4) for taxable years ending on or after December
23 31, 2001, $4,000.
24 For taxable years ending on or after December 31, 1992, a
25 taxpayer whose Illinois base income exceeds the basic amount
26 and who is claimed as a dependent on another person's tax
27 return under the Internal Revenue Code of 1986 shall not be
28 allowed any basic amount under this subsection.
29 (c) Additional amount for individuals. In the case of an
30 individual taxpayer, there shall be allowed for the purpose
31 of subsection (a), in addition to the basic amount provided
32 by subsection (b), an additional exemption equal to the basic
33 amount for each exemption in excess of one allowable to such
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1 individual taxpayer for the taxable year under Section 151 of
2 the Internal Revenue Code.
3 (d) Additional exemptions for an individual taxpayer and
4 his or her spouse. In the case of an individual taxpayer and
5 his or her spouse, he or she shall each be allowed additional
6 exemptions as follows:
7 (1) Additional exemption for taxpayer or spouse 65
8 years of age or older.
9 (A) For taxpayer. An additional exemption of
10 $1,000 for the taxpayer if he or she has attained
11 the age of 65 before the end of the taxable year.
12 (B) For spouse when a joint return is not
13 filed. An additional exemption of $1,000 for the
14 spouse of the taxpayer if a joint return is not made
15 by the taxpayer and his spouse, and if the spouse
16 has attained the age of 65 before the end of such
17 taxable year, and, for the calendar year in which
18 the taxable year of the taxpayer begins, has no
19 gross income and is not the dependent of another
20 taxpayer.
21 (2) Additional exemption for blindness of taxpayer
22 or spouse.
23 (A) For taxpayer. An additional exemption of
24 $1,000 for the taxpayer if he or she is blind at the
25 end of the taxable year.
26 (B) For spouse when a joint return is not
27 filed. An additional exemption of $1,000 for the
28 spouse of the taxpayer if a separate return is made
29 by the taxpayer, and if the spouse is blind and, for
30 the calendar year in which the taxable year of the
31 taxpayer begins, has no gross income and is not the
32 dependent of another taxpayer. For purposes of this
33 paragraph, the determination of whether the spouse
34 is blind shall be made as of the end of the taxable
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1 year of the taxpayer; except that if the spouse dies
2 during such taxable year such determination shall be
3 made as of the time of such death.
4 (C) Blindness defined. For purposes of this
5 subsection, an individual is blind only if his or
6 her central visual acuity does not exceed 20/200 in
7 the better eye with correcting lenses, or if his or
8 her visual acuity is greater than 20/200 but is
9 accompanied by a limitation in the fields of vision
10 such that the widest diameter of the visual fields
11 subtends an angle no greater than 20 degrees.
12 (e) Cross reference. See Article 3 for the manner of
13 determining base income allocable to this State.
14 (f) Application of Section 250. Section 250 does not
15 apply to the amendments to this Section made by Public Act
16 90-613 or this amendatory Act of the 92nd General Assembly.
17 (Source: P.A. 90-613, eff. 7-9-98; 91-357, eff. 7-29-99.)
18 (35 ILCS 5/208) (from Ch. 120, par. 2-208)
19 Sec. 208. Tax credit for residential real property taxes.
20 (a) Beginning with tax years ending on or after December
21 31, 1991, every individual taxpayer shall be entitled to a
22 tax credit equal to 5% of real property taxes paid by such
23 taxpayer during the taxable year on the principal residence
24 of the taxpayer.
25 (b) In addition to the tax credit provided under
26 subsection (a), for tax years ending on or after December 31,
27 2001, every individual taxpayer whose principal residence has
28 an equalized assessed value as determined by the Department
29 of less than $166,667 shall be entitled to an additional tax
30 credit equal to 5% of the real property taxes paid by the
31 taxpayer during the taxable year on the principal residence
32 of the taxpayer. The changes to this Section made by this
33 amendatory Act of the 92nd General Assembly are exempt from
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1 the provisions of Section 250.
2 (c) In the case of multi-unit or multi-use structures
3 and farm dwellings, the taxes on the taxpayer's principal
4 residence shall be that portion of the total taxes which is
5 attributable to such principal residence.
6 (Source: P.A. 87-17.)
7 (35 ILCS 5/208.5 new)
8 Sec. 208.5. Residential rent credit. Beginning with tax
9 years ending on or after December 31, 2001 and ending with
10 tax years ending on or before December 31, 2002, each
11 individual taxpayer is entitled to a credit against the tax
12 imposed under this Act in the amount of 5% of the average
13 monthly rent paid by the taxpayer during the taxable year for
14 the residence of the taxpayer. For purposes of this credit,
15 the amount of rent for any single month used for calculating
16 the average monthly rent shall not exceed $1,000. In no event
17 shall a credit under this Section reduce the taxpayer's
18 liability under this Act to less than zero.
19 (35 ILCS 5/208.7 new)
20 Sec. 208.7. Tax credit for real property taxes paid by
21 Subchapter S corporations or sole proprietorships. For tax
22 years ending on or after December 31, 2001, every Subchapter
23 S corporation and sole proprietorship in this State shall be
24 entitled to a tax credit equal to 5% of the real property
25 taxes paid by the Subchapter S corporation or sole
26 proprietorship during the taxable year on eligible property
27 owned by the Subchapter S corporation or sole proprietorship.
28 For purposes of this Section, "eligible property" means
29 property with an equalized assessed value of less than (i)
30 $399,000 in a county with 3,000,000 or more inhabitants or
31 (ii) $166,667 in a county with fewer than 3,000,000
32 inhabitants. In no event shall a credit under this Section
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1 reduce the liability under this Act of the Subchapter S
2 corporation or sole proprietorship to less than zero. This
3 Section is exempt from the provisions of Section 250.
4 (35 ILCS 5/212)
5 (Section scheduled to be repealed on June 1, 2003)
6 Sec. 212. Earned income tax credit.
7 (a) With respect to the federal earned income tax credit
8 allowed for the taxable year under Section 32 of the federal
9 Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
10 is entitled to a credit against the tax imposed by
11 subsections (a) and (b) of Section 201 in an amount equal to:
12 (1) 5% of the federal tax credit for each taxable
13 year beginning on or after January 1, 2000 and ending on
14 or before December 31, 2001;
15 (2) 10% of the federal tax credit for each taxable
16 year beginning on or after January 1, 2002 and ending on
17 or before December 31, 2002;
18 (3) 15% of the federal tax credit for each taxable
19 year beginning on or after January 1, 2003 and ending on
20 or before December 31, 2003;
21 (4) 20% of the federal tax credit for each taxable
22 year beginning on or after January 1, 2004 and ending on
23 or before December 31, 2005 2002.
24 For a non-resident or part-year resident, the amount of
25 the credit under this Section shall be in proportion to the
26 amount of income attributable to this State.
27 (b) In no event shall a credit under this Section reduce
28 the taxpayer's liability to less than zero.
29 (c) This Section is repealed on June 1, 2006 2003.
30 (Source: P.A. 91-700, eff. 5-11-00.)
31 (35 ILCS 5/213 new)
32 Sec. 213. Senior Citizen Unreimbursed Health Care Costs
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1 Tax Credit. Beginning with taxable years ending on or after
2 December 31, 2001 and ending with taxable years ending on or
3 before December 31, 2010, an individual 65 years or older or
4 an individual who will become 65 during the calendar year in
5 which a claim is filed and whose annual household income is
6 below the minimum income level specified in Section 4 of the
7 Senior Citizens and Disabled Persons Property Tax Relief and
8 Pharmaceutical Assistance Act is entitled to a credit against
9 the tax imposed under this Act in an amount up to $1,000 per
10 taxable year for unreimbursed health care costs. If a credit
11 allowed under this Section exceeds the tax liability of the
12 taxpayer, the taxpayer shall receive a refund for the amount
13 of the excess.
14 For purposes of this Section, "unreimbursed health care
15 costs" means those expenditures not covered and paid by
16 Medicare, Medicaid, or private insurance.
17 (35 ILCS 5/214 new)
18 Sec. 214. Tax credit for long term care insurance
19 premiums. For taxable years ending on or after December 31,
20 2001, an individual taxpayer is entitled to a credit against
21 the tax imposed by subsections (a) and (b) of Section 201 in
22 an amount equal to 15% of the premium costs paid by the
23 taxpayer during the taxable year for a qualified long term
24 care insurance contract as defined by Section 7702B of the
25 Internal Revenue Code that offers coverage to either the
26 individual or the individual's spouse, parent, or dependent
27 as defined in Section 152 of the Internal Revenue Code. The
28 credit allowed under this Section may not exceed $200 for
29 each qualified long term care policy or the amount of the
30 taxpayer's liability under this Act, whichever is less. A
31 taxpayer is not entitled to the credit with respect to
32 amounts expended for the same qualified long term care
33 insurance contract that are claimed by another taxpayer. If
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1 the amount of the credit exceeds the taxpayer's liability
2 under this Act for the year, then the excess may not be
3 carried forward to apply to the taxpayer's liability for the
4 succeeding year. The provisions of Section 250 do not apply
5 to the credit under this Section.
6 (Source: P.A. 91-700, eff. 5-11-00.)
7 (35 ILCS 5/215 new)
8 Sec. 215. Tax credit for volunteer firefighters. For
9 taxable years ending on or after December 31, 2001, each
10 taxpayer who was a member in good standing of a volunteer
11 fire department during the entire taxable year is entitled to
12 a credit against the tax imposed by subsections (a) and (b)
13 of Section 201. The credit allowed under this Section may
14 not exceed $500 or the amount of the taxpayer's liability
15 under this Act, whichever is less. If the amount of the
16 credit exceeds the taxpayer's liability under this Act for
17 the year, then the excess may not be carried forward to apply
18 to the taxpayer's liability for the succeeding year. This
19 Section is exempt from the provisions of Section 250.
20 (35 ILCS 5/216 new)
21 Sec. 216. Tax credit for tuition and fees paid at any
22 public or private college, university, or community college
23 located in Illinois. Beginning with taxable years ending on
24 or after December 31, 2001 and ending with taxable years
25 ending on or before December 31, 2010, a taxpayer with an
26 adjusted gross income of less than $100,000 is entitled to a
27 credit against the tax imposed under this Act in an amount
28 not to exceed $500 for amounts spent during the taxable year
29 for the tuition and fees of the taxpayer and any dependent of
30 the taxpayer engaged in full-time or part-time undergraduate
31 studies at any public or private college, university, or
32 community college located in Illinois. This credit shall not
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1 be available to individuals whose tuition or fees are
2 reimbursed by their employers. In no event shall a credit
3 under this Section reduce the taxpayer's liability under this
4 Act to less than zero.
5 (35 ILCS 5/217 new)
6 Sec. 217. Lactation room tax credit. For taxable years
7 beginning on or after January 1, 2001, a taxpayer is entitled
8 to a credit against the taxes imposed by subsections (a) and
9 (b) of Section 201 in an amount equal to the expenditures
10 required for providing an on-site lactation room on the
11 premises of the taxpayer's workplace for employees. For the
12 purposes of this Section, an "on-site lactation room" means a
13 private room that has a locking door, comfortable
14 accommodations, electric amenities including a refrigerator,
15 and other reasonable items. If the amount of a credit
16 exceeds the tax liability for the year, then the excess may
17 be carried forward and applied to the tax liability of the 3
18 taxable years following the excess credit year. A credit
19 must be applied to the earliest year for which there is a tax
20 liability. If there are credits from more than one taxable
21 year that are available to offset a liability, then the
22 earlier credit must be applied first. This Section is exempt
23 from the provisions of Section 250.
24 (35 ILCS 5/218 new)
25 Sec. 218. Tax credit for affordable housing donations.
26 (a) Beginning with taxable years ending on or after
27 December 31, 2001 and until the taxable year ending on
28 December 31, 2006, a taxpayer who makes a donation under
29 Section 8.24 of the Housing Authorities Act for the
30 development of affordable housing in this State is entitled
31 to a credit against the tax imposed by subsections (a) and
32 (b) of Section 201 in an amount equal to 50% of the value of
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1 the donation. Partners, shareholders of subchapter S
2 corporations, and owners of limited liability companies (if
3 the liability company is treated as a partnership for
4 purposes of federal and State income taxation) are entitled a
5 credit under this Section to be determined in accordance with
6 the determination of income and distributive share of income
7 under Sections 702 and 703 of subchapter S of the Internal
8 Revenue Code.
9 (b) If the amount of the credit exceeds the tax
10 liability for the year, the excess may be carried forward and
11 applied to the tax liability of the 5 taxable years following
12 the excess credit year. The tax credit shall be applied to
13 the earliest year for which there is a tax liability. If
14 there are credits for more than one year that are available
15 to offset a liability, the earlier credit shall be applied
16 first.
17 (c) The transfer of the tax credit allowed under this
18 Section may be made (i) to the purchaser of land that has
19 been designated solely for affordable housing projects in
20 accordance with the Housing Authorities Act or (ii) to
21 another donor who has also made an eligible donation to the
22 sponsor of an affordable housing project in accordance with
23 the Housing Authorities Act.
24 (d) A taxpayer claiming the credit provided by this
25 Section must maintain and record any information that the
26 Department may require by regulation regarding the affordable
27 housing project for which the credit is claimed. When
28 claiming the credit provided by this Section, the taxpayer
29 must provide information regarding the taxpayer's donation to
30 the development of affordable housing under the Housing
31 Authorities Act.
32 (35 ILCS 5/219 new)
33 Sec. 219. Dependent care tax credit.
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1 (a) Beginning with taxable years ending on or after
2 December 31, 2001 and ending with taxable years ending on or
3 before December 30, 2006, each individual taxpayer is
4 entitled to a credit against the tax imposed by subsections
5 (a) and (b) of Section 201 in an amount equal to $500
6 multiplied by the number of applicable individuals with
7 respect to whom the taxpayer is an eligible caregiver for the
8 taxable year.
9 (b) As used in this Section, "applicable individual"
10 means, with respect to any taxable year, any individual who
11 has been certified, before the due date for filing the return
12 of tax for the taxable year (without extensions), by a
13 physician licensed to practice medicine in all its branches
14 under the Medical Practice Act of 1987 as being an individual
15 with long-term care needs described in subsection (c) for a
16 period:
17 (1) which is at least 180 consecutive days, and
18 (2) a portion of which occurs within the taxable
19 year.
20 "Applicable individual" does not include any individual
21 otherwise meeting the requirements of the preceding sentence
22 unless within the 39 1/2 month period ending on that due date
23 (or such other period as the Department prescribes) a
24 physician licensed to practice medicine in all its branches
25 under the Medical Practice Act of 1987 has certified that
26 that individual meets those requirements.
27 (c) As used in this Section, an individual is an
28 individual with long term care needs if the individual meets
29 any of the following requirements:
30 (1) The individual is at least 6 years of age and:
31 (A) is unable to perform (without substantial
32 assistance from another individual) at least 3
33 activities of daily living, as defined in Section
34 7702B(c)(2)(B) of the Internal Revenue Code, due to
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1 a loss of functional capacity, or
2 (B) requires substantial supervision to
3 protect that individual from threats to health and
4 safety due to severe cognitive impairment and is
5 unable to perform at least one activity of daily
6 living, as defined in Section 7702B(c)(2)(B) of the
7 Internal Revenue Code, or to the extent provided by
8 the Department (in consultation with the Secretary
9 of Human Services), is unable to engage in age
10 appropriate activities.
11 (2) The individual is at least 2 years of age but
12 less than 6 years of age and is unable due to a loss of
13 functional capacity to perform (without substantial
14 assistance from another individual) at least 2 of the
15 following activities: eating, transferring, or mobility.
16 (3) The individual is under 2 years of age and
17 requires specific durable medical equipment by reason of
18 a severe health condition or requires a skilled
19 practitioner trained to address the individual's
20 condition to be available if the individual's parents or
21 guardians are absent.
22 (d) A taxpayer shall be treated as an "eligible
23 caregiver" for any taxable year with respect to the following
24 individuals:
25 (1) The taxpayer.
26 (2) The taxpayer's spouse.
27 (3) An individual with respect to whom the taxpayer
28 is allowed an exemption under Section 204 for the taxable
29 year.
30 (4) An individual who would be described in
31 subdivision (d)(3) for the taxable year if Section
32 151(c)(1)(A) of the Internal Revenue Code, relating to
33 gross income limitation, were applied by substituting for
34 the federal exemption amount specified in that Section,
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1 an amount equal to the sum of the federal exemption
2 amount specified in that Section, the federal standard
3 deduction under Section 63(c)(2)(C) of the Internal
4 Revenue Code, and any additional federal standard
5 deduction under Section 63(c)(3) of the Internal Revenue
6 Code which would be applicable to the individual if
7 subdivision (d)(3) applied.
8 (5) An individual who would be described in
9 subdivision (d)(3) for the taxable year if:
10 (A) the requirements of subdivision (d)(4) are
11 met with respect to the individual, and
12 (B) the requirements of subsection (e) are met
13 with respect to the individual in lieu of the
14 support test of Section 152(a) of the Internal
15 Revenue Code.
16 (e) The requirements of this subsection are met if an
17 individual has as his or her principal place of abode the
18 home of the taxpayer, and
19 (1) in the case of an individual who is an ancestor
20 or descendant of the taxpayer or the taxpayer's spouse,
21 is a member of the taxpayer's household for over half the
22 taxable year, or
23 (2) in the case of any other individual, is a
24 member of the taxpayer's household for the entire taxable
25 year.
26 (f) Persons eligible to claim credit.
27 (1) If more than one individual is an eligible
28 caregiver with respect to the same applicable individual
29 for taxable years ending with or within the same calendar
30 year, a taxpayer shall be treated as the eligible
31 caregiver if each of those individuals (other than the
32 taxpayer) files a written declaration (in the form and
33 manner as the Department may prescribe) that that
34 individual will not claim that applicable individual for
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1 the credit under this Section.
2 (2) If each individual required under subdivision
3 (f)(1) to file a written declaration under subdivision
4 (f)(1) does not do so, the individual with the highest
5 federal modified adjusted gross income (as defined in
6 Section 32(c)(5) of the Internal Revenue Code for federal
7 purposes) shall be treated as the eligible caregiver.
8 (3) In the case of married individuals filing
9 separate returns, the determination under this subsection
10 (f) as to whether the husband or wife is the eligible
11 caregiver shall be made under the rules of subdivision
12 (f)(2) (whether or not one of them has filed a written
13 declaration under subdivision (f)(1)).
14 (g) No credit shall be allowed under this Section to a
15 taxpayer with respect to any applicable individual unless the
16 taxpayer includes the name and taxpayer identification number
17 of that individual, and the identification number of the
18 physician certifying that individual, on the return of tax
19 for the taxable year.
20 (h) The taxpayer shall retain the physician
21 certification required by subdivision (b) and shall make that
22 certification available to the Department upon request.
23 Section 99-20. The Economic Development for a Growing
24 Economy Tax Credit Act is amended by changing Section 5-20 as
25 follows:
26 (35 ILCS 10/5-20)
27 Sec. 5-20. Application for a project to create and
28 retain new jobs.
29 (a) Any Taxpayer proposing a project located or planned
30 to be located in Illinois may request consideration for
31 designation of its project, by formal written letter of
32 request or by formal application to the Department, in which
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1 the Applicant states its intent to make at least a specified
2 level of investment and intends to hire or retain a specified
3 number of full-time employees at a designated location in
4 Illinois. As circumstances require, the Department may
5 require a formal application from an Applicant and a formal
6 letter of request for assistance.
7 (b) In order to qualify for Credits under this Act, an
8 Applicant's project must:
9 (1) involve an investment of at least $5,000,000 in
10 capital improvements to be placed in service and to
11 employ at least 25 New Employees within the State as a
12 direct result of the project; or
13 (2) involve an investment of at least an amount (to
14 be expressly specified by the Department and the
15 Committee) in capital improvements to be placed in
16 service and will employ at least an amount (to be
17 expressly specified by the Department and the Committee)
18 of New Employees within the State, provided that the
19 Department and the Committee have determined that the
20 project will provide a substantial economic benefit to
21 the State; or
22 (3) meet the requirements set forth in subsection
23 (f-10) of Section 58.14 of the Environmental Protection
24 Act.
25 (c) After receipt of an application, the Department may
26 enter into an Agreement with the Applicant if the application
27 is accepted in accordance with Section 5-25.
28 (Source: P.A. 91-476, eff. 8-11-99.)
29 Section 99-25. The Use Tax Act is amended by changing
30 Sections 1a, 3-5, 3-10, and 9 and by adding Sections 3-87 and
31 3b as follows:
32 (35 ILCS 105/1a) (from Ch. 120, par. 439.1a)
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1 Sec. 1a. A person who is engaged in the business of
2 leasing or renting motor vehicles to others and who, in
3 connection with such business sells any used motor vehicle to
4 a purchaser for his use and not for the purpose of resale, is
5 a retailer engaged in the business of selling tangible
6 personal property at retail under this Act to the extent of
7 the value of the vehicle sold. For the purpose of this
8 Section, "motor vehicle" means any motor vehicle of the first
9 division, a motor vehicle of the second division which is a
10 self-contained motor vehicle designed or permanently
11 converted to provide living quarters for recreational,
12 camping or travel use, with direct walk through access to the
13 living quarters from the driver's seat, or a motor vehicle of
14 a second division which is of the van configuration designed
15 for the transportation of not less than 7 nor more than 16
16 passengers, as defined in Section 1-146 of the Illinois
17 Vehicle Code. For the purpose of this Section, "motor
18 vehicle" has the meaning prescribed in Section 1-157 of The
19 Illinois Vehicle Code, as now or hereafter amended. (Nothing
20 provided herein shall affect liability incurred under this
21 Act because of the use of such motor vehicles as a lessor.)
22 (Source: P.A. 80-598.)
23 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
24 Sec. 3-5. Exemptions. Use of the following tangible
25 personal property is exempt from the tax imposed by this Act:
26 (1) Personal property purchased from a corporation,
27 society, association, foundation, institution, or
28 organization, other than a limited liability company, that is
29 organized and operated as a not-for-profit service enterprise
30 for the benefit of persons 65 years of age or older if the
31 personal property was not purchased by the enterprise for the
32 purpose of resale by the enterprise.
33 (2) Personal property purchased by a not-for-profit
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1 Illinois county fair association for use in conducting,
2 operating, or promoting the county fair.
3 (3) Personal property purchased by a not-for-profit arts
4 or cultural organization that establishes, by proof required
5 by the Department by rule, that it has received an exemption
6 under Section 501(c)(3) of the Internal Revenue Code and that
7 is organized and operated for the presentation or support of
8 arts or cultural programming, activities, or services. These
9 organizations include, but are not limited to, music and
10 dramatic arts organizations such as symphony orchestras and
11 theatrical groups, arts and cultural service organizations,
12 local arts councils, visual arts organizations, and media
13 arts organizations.
14 (4) Personal property purchased by a governmental body,
15 by a corporation, society, association, foundation, or
16 institution organized and operated exclusively for
17 charitable, religious, or educational purposes, or by a
18 not-for-profit corporation, society, association, foundation,
19 institution, or organization that has no compensated officers
20 or employees and that is organized and operated primarily for
21 the recreation of persons 55 years of age or older. A limited
22 liability company may qualify for the exemption under this
23 paragraph only if the limited liability company is organized
24 and operated exclusively for educational purposes. On and
25 after July 1, 1987, however, no entity otherwise eligible for
26 this exemption shall make tax-free purchases unless it has an
27 active exemption identification number issued by the
28 Department.
29 (5) A passenger car that is a replacement vehicle to the
30 extent that the purchase price of the car is subject to the
31 Replacement Vehicle Tax.
32 (6) Graphic arts machinery and equipment, including
33 repair and replacement parts, both new and used, and
34 including that manufactured on special order, certified by
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1 the purchaser to be used primarily for graphic arts
2 production, and including machinery and equipment purchased
3 for lease.
4 (7) Farm chemicals.
5 (8) Legal tender, currency, medallions, or gold or
6 silver coinage issued by the State of Illinois, the
7 government of the United States of America, or the government
8 of any foreign country, and bullion.
9 (9) Personal property purchased from a teacher-sponsored
10 student organization affiliated with an elementary or
11 secondary school located in Illinois.
12 (10) A motor vehicle of the first division, a motor
13 vehicle of the second division that is a self-contained motor
14 vehicle designed or permanently converted to provide living
15 quarters for recreational, camping, or travel use, with
16 direct walk through to the living quarters from the driver's
17 seat, or a motor vehicle of the second division that is of
18 the van configuration designed for the transportation of not
19 less than 7 nor more than 16 passengers, as defined in
20 Section 1-146 of the Illinois Vehicle Code, that is used for
21 automobile renting, as defined in the Automobile Renting
22 Occupation and Use Tax Act.
23 (11) Farm machinery and equipment, both new and used,
24 including that manufactured on special order, certified by
25 the purchaser to be used primarily for production agriculture
26 or State or federal agricultural programs, including
27 individual replacement parts for the machinery and equipment,
28 including machinery and equipment purchased for lease, and
29 including implements of husbandry defined in Section 1-130 of
30 the Illinois Vehicle Code, farm machinery and agricultural
31 chemical and fertilizer spreaders, and nurse wagons required
32 to be registered under Section 3-809 of the Illinois Vehicle
33 Code, but excluding other motor vehicles required to be
34 registered under the Illinois Vehicle Code. Horticultural
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1 polyhouses or hoop houses used for propagating, growing, or
2 overwintering plants shall be considered farm machinery and
3 equipment under this item (11). Agricultural chemical tender
4 tanks and dry boxes shall include units sold separately from
5 a motor vehicle required to be licensed and units sold
6 mounted on a motor vehicle required to be licensed if the
7 selling price of the tender is separately stated.
8 Farm machinery and equipment shall include precision
9 farming equipment that is installed or purchased to be
10 installed on farm machinery and equipment including, but not
11 limited to, tractors, harvesters, sprayers, planters,
12 seeders, or spreaders. Precision farming equipment includes,
13 but is not limited to, soil testing sensors, computers,
14 monitors, software, global positioning and mapping systems,
15 and other such equipment.
16 Farm machinery and equipment also includes computers,
17 sensors, software, and related equipment used primarily in
18 the computer-assisted operation of production agriculture
19 facilities, equipment, and activities such as, but not
20 limited to, the collection, monitoring, and correlation of
21 animal and crop data for the purpose of formulating animal
22 diets and agricultural chemicals. This item (11) is exempt
23 from the provisions of Section 3-90.
24 (12) Fuel and petroleum products sold to or used by an
25 air common carrier, certified by the carrier to be used for
26 consumption, shipment, or storage in the conduct of its
27 business as an air common carrier, for a flight destined for
28 or returning from a location or locations outside the United
29 States without regard to previous or subsequent domestic
30 stopovers.
31 (13) Proceeds of mandatory service charges separately
32 stated on customers' bills for the purchase and consumption
33 of food and beverages purchased at retail from a retailer, to
34 the extent that the proceeds of the service charge are in
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1 fact turned over as tips or as a substitute for tips to the
2 employees who participate directly in preparing, serving,
3 hosting or cleaning up the food or beverage function with
4 respect to which the service charge is imposed.
5 (14) Oil field exploration, drilling, and production
6 equipment, including (i) rigs and parts of rigs, rotary rigs,
7 cable tool rigs, and workover rigs, (ii) pipe and tubular
8 goods, including casing and drill strings, (iii) pumps and
9 pump-jack units, (iv) storage tanks and flow lines, (v) any
10 individual replacement part for oil field exploration,
11 drilling, and production equipment, and (vi) machinery and
12 equipment purchased for lease; but excluding motor vehicles
13 required to be registered under the Illinois Vehicle Code.
14 (15) Photoprocessing machinery and equipment, including
15 repair and replacement parts, both new and used, including
16 that manufactured on special order, certified by the
17 purchaser to be used primarily for photoprocessing, and
18 including photoprocessing machinery and equipment purchased
19 for lease.
20 (16) Coal exploration, mining, offhighway hauling,
21 processing, maintenance, and reclamation equipment, including
22 replacement parts and equipment, and including equipment
23 purchased for lease, but excluding motor vehicles required to
24 be registered under the Illinois Vehicle Code.
25 (17) Distillation machinery and equipment, sold as a
26 unit or kit, assembled or installed by the retailer,
27 certified by the user to be used only for the production of
28 ethyl alcohol that will be used for consumption as motor fuel
29 or as a component of motor fuel for the personal use of the
30 user, and not subject to sale or resale.
31 (18) Manufacturing and assembling machinery and
32 equipment used primarily in the process of manufacturing or
33 assembling tangible personal property for wholesale or retail
34 sale or lease, whether that sale or lease is made directly by
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1 the manufacturer or by some other person, whether the
2 materials used in the process are owned by the manufacturer
3 or some other person, or whether that sale or lease is made
4 apart from or as an incident to the seller's engaging in the
5 service occupation of producing machines, tools, dies, jigs,
6 patterns, gauges, or other similar items of no commercial
7 value on special order for a particular purchaser.
8 (19) Personal property delivered to a purchaser or
9 purchaser's donee inside Illinois when the purchase order for
10 that personal property was received by a florist located
11 outside Illinois who has a florist located inside Illinois
12 deliver the personal property.
13 (20) Semen used for artificial insemination of livestock
14 for direct agricultural production.
15 (21) Horses, or interests in horses, registered with and
16 meeting the requirements of any of the Arabian Horse Club
17 Registry of America, Appaloosa Horse Club, American Quarter
18 Horse Association, United States Trotting Association, or
19 Jockey Club, as appropriate, used for purposes of breeding or
20 racing for prizes.
21 (22) Computers and communications equipment utilized for
22 any hospital purpose and equipment used in the diagnosis,
23 analysis, or treatment of hospital patients purchased by a
24 lessor who leases the equipment, under a lease of one year or
25 longer executed or in effect at the time the lessor would
26 otherwise be subject to the tax imposed by this Act, to a
27 hospital that has been issued an active tax exemption
28 identification number by the Department under Section 1g of
29 the Retailers' Occupation Tax Act. If the equipment is
30 leased in a manner that does not qualify for this exemption
31 or is used in any other non-exempt manner, the lessor shall
32 be liable for the tax imposed under this Act or the Service
33 Use Tax Act, as the case may be, based on the fair market
34 value of the property at the time the non-qualifying use
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1 occurs. No lessor shall collect or attempt to collect an
2 amount (however designated) that purports to reimburse that
3 lessor for the tax imposed by this Act or the Service Use Tax
4 Act, as the case may be, if the tax has not been paid by the
5 lessor. If a lessor improperly collects any such amount from
6 the lessee, the lessee shall have a legal right to claim a
7 refund of that amount from the lessor. If, however, that
8 amount is not refunded to the lessee for any reason, the
9 lessor is liable to pay that amount to the Department.
10 (23) Personal property purchased by a lessor who leases
11 the property, under a lease of one year or longer executed
12 or in effect at the time the lessor would otherwise be
13 subject to the tax imposed by this Act, to a governmental
14 body that has been issued an active sales tax exemption
15 identification number by the Department under Section 1g of
16 the Retailers' Occupation Tax Act. If the property is leased
17 in a manner that does not qualify for this exemption or used
18 in any other non-exempt manner, the lessor shall be liable
19 for the tax imposed under this Act or the Service Use Tax
20 Act, as the case may be, based on the fair market value of
21 the property at the time the non-qualifying use occurs. No
22 lessor shall collect or attempt to collect an amount (however
23 designated) that purports to reimburse that lessor for the
24 tax imposed by this Act or the Service Use Tax Act, as the
25 case may be, if the tax has not been paid by the lessor. If
26 a lessor improperly collects any such amount from the lessee,
27 the lessee shall have a legal right to claim a refund of that
28 amount from the lessor. If, however, that amount is not
29 refunded to the lessee for any reason, the lessor is liable
30 to pay that amount to the Department.
31 (24) Beginning with taxable years ending on or after
32 December 31, 1995 and ending with taxable years ending on or
33 before December 31, 2004, personal property that is donated
34 for disaster relief to be used in a State or federally
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1 declared disaster area in Illinois or bordering Illinois by a
2 manufacturer or retailer that is registered in this State to
3 a corporation, society, association, foundation, or
4 institution that has been issued a sales tax exemption
5 identification number by the Department that assists victims
6 of the disaster who reside within the declared disaster area.
7 (25) Beginning with taxable years ending on or after
8 December 31, 1995 and ending with taxable years ending on or
9 before December 31, 2004, personal property that is used in
10 the performance of infrastructure repairs in this State,
11 including but not limited to municipal roads and streets,
12 access roads, bridges, sidewalks, waste disposal systems,
13 water and sewer line extensions, water distribution and
14 purification facilities, storm water drainage and retention
15 facilities, and sewage treatment facilities, resulting from a
16 State or federally declared disaster in Illinois or bordering
17 Illinois when such repairs are initiated on facilities
18 located in the declared disaster area within 6 months after
19 the disaster.
20 (26) Beginning July 1, 1999, game or game birds
21 purchased at a "game breeding and hunting preserve area" or
22 an "exotic game hunting area" as those terms are used in the
23 Wildlife Code or at a hunting enclosure approved through
24 rules adopted by the Department of Natural Resources. This
25 paragraph is exempt from the provisions of Section 3-90.
26 (27) A motor vehicle, as that term is defined in Section
27 1-146 of the Illinois Vehicle Code, that is donated to a
28 corporation, limited liability company, society, association,
29 foundation, or institution that is determined by the
30 Department to be organized and operated exclusively for
31 educational purposes. For purposes of this exemption, "a
32 corporation, limited liability company, society, association,
33 foundation, or institution organized and operated exclusively
34 for educational purposes" means all tax-supported public
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1 schools, private schools that offer systematic instruction in
2 useful branches of learning by methods common to public
3 schools and that compare favorably in their scope and
4 intensity with the course of study presented in tax-supported
5 schools, and vocational or technical schools or institutes
6 organized and operated exclusively to provide a course of
7 study of not less than 6 weeks duration and designed to
8 prepare individuals to follow a trade or to pursue a manual,
9 technical, mechanical, industrial, business, or commercial
10 occupation.
11 (28) Beginning January 1, 2000, personal property,
12 including food, purchased through fundraising events for the
13 benefit of a public or private elementary or secondary
14 school, a group of those schools, or one or more school
15 districts if the events are sponsored by an entity recognized
16 by the school district that consists primarily of volunteers
17 and includes parents and teachers of the school children.
18 This paragraph does not apply to fundraising events (i) for
19 the benefit of private home instruction or (ii) for which the
20 fundraising entity purchases the personal property sold at
21 the events from another individual or entity that sold the
22 property for the purpose of resale by the fundraising entity
23 and that profits from the sale to the fundraising entity.
24 This paragraph is exempt from the provisions of Section 3-90.
25 (29) Beginning January 1, 2000, new or used automatic
26 vending machines that prepare and serve hot food and
27 beverages, including coffee, soup, and other items, and
28 replacement parts for these machines. This paragraph is
29 exempt from the provisions of Section 3-90.
30 (30) Food for human consumption that is to be consumed
31 off the premises where it is sold (other than alcoholic
32 beverages, soft drinks, and food that has been prepared for
33 immediate consumption) and prescription and nonprescription
34 medicines, drugs, medical appliances, and insulin, urine
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1 testing materials, syringes, and needles used by diabetics,
2 for human use, when purchased for use by a person receiving
3 medical assistance under Article 5 of the Illinois Public Aid
4 Code who resides in a licensed long-term care facility, as
5 defined in the Nursing Home Care Act.
6 (31) Beginning January 1, 2002, tangible personal
7 property and its component parts purchased by a
8 telecommunications carrier if the property and parts are used
9 directly and primarily in transmitting, receiving, switching,
10 or recording any interactive, two-way electromagnetic
11 communications, including voice, image, data, and
12 information, through the use of any medium, including, but
13 not limited to, poles, wires, cables, switching equipment,
14 computers, and record storage devices and media. This
15 paragraph is exempt from the provisions of Section 3-90.
16 (32) Beginning on the effective date of this amendatory
17 Act of the 92nd General Assembly and ending 10 years after
18 the effective date of this amendatory Act of the 92nd General
19 Assembly, production related tangible personal property and
20 machinery and equipment, including repair and replacement
21 parts, both new and used, and including those items
22 manufactured on special order or purchased for lease,
23 certified by the purchaser to be essential to and used in the
24 integrated process of the production of electricity by an
25 eligible facility owned, operated, or leased by an exempt
26 wholesale generator. "Eligible facility" and "exempt
27 wholesale generator" shall mean "eligible facility" and
28 "exempt wholesale generator" as defined in Section 32 of the
29 Public Utility Holding Company Act of 1935, 15 U.S.C. 79z-5a,
30 in effect as of the date of this amendatory Act of the 92nd
31 General Assembly. "Machinery" includes mechanical machines
32 and components of those machines that directly contribute to
33 or are directly used in or essential to the process of the
34 production of electricity. "Equipment" includes an
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1 independent device or tool separate from machinery but
2 essential to an integrated electricity generation process;
3 including pipes of any kind used in the process of the
4 production of electricity; computers used primarily in
5 operating exempt machinery; any subunit or assembly
6 comprising a component of any machinery or auxiliary,
7 adjunct, or attachment parts of machinery, and any parts that
8 require periodic replacement in the course of normal
9 operation; but does not include hand tools. "Production
10 related tangible personal property" means all tangible
11 personal property directly used in or essential to the
12 process of the production of electricity including, but not
13 limited to, tangible personal property used in activities
14 such as preproduction material handling, receiving, quality
15 control, inventory control, storage, staging, and piping or
16 lines necessary for the transportation of water, natural gas,
17 steam, and similar items to and from an eligible facility for
18 use in the process of the production of electricity. This
19 paragraph (32) shall apply also to machinery and equipment
20 used in the general maintenance or repair of exempt machinery
21 and equipment. This paragraph is solely for the purpose of
22 determining whether the production related tangible personal
23 property defined in this paragraph is exempt from the tax
24 imposed by this Act. Nothing in this paragraph, including,
25 but not limited to, any definitions set forth in this
26 paragraph, shall be construed, applied, or relied upon in any
27 way to ascertain whether the property exempt from the tax
28 imposed by this Act is real property or personal property for
29 the purpose of determining whether the property is subject to
30 ad valorem taxes on real property or to any other taxes.
31 This exemption does not apply to any additional tax imposed
32 by the Board of Directors of the Regional Transportation
33 Authority under Section 4.03 of the Regional Transportation
34 Authority Act.
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1 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
2 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
3 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
4 eff. 8-20-99; 91-901, eff. 1-1-01.)
5 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
6 Sec. 3-10. Rate of tax. Unless otherwise provided in
7 this Section, the tax imposed by this Act is at the rate of
8 6.25% of either the selling price or the fair market value,
9 if any, of the tangible personal property. In all cases
10 where property functionally used or consumed is the same as
11 the property that was purchased at retail, then the tax is
12 imposed on the selling price of the property. In all cases
13 where property functionally used or consumed is a by-product
14 or waste product that has been refined, manufactured, or
15 produced from property purchased at retail, then the tax is
16 imposed on the lower of the fair market value, if any, of the
17 specific property so used in this State or on the selling
18 price of the property purchased at retail. For purposes of
19 this Section "fair market value" means the price at which
20 property would change hands between a willing buyer and a
21 willing seller, neither being under any compulsion to buy or
22 sell and both having reasonable knowledge of the relevant
23 facts. The fair market value shall be established by Illinois
24 sales by the taxpayer of the same property as that
25 functionally used or consumed, or if there are no such sales
26 by the taxpayer, then comparable sales or purchases of
27 property of like kind and character in Illinois.
28 Beginning on July 1, 2000 and through December 31, 2000,
29 and, beginning again on July 1, 2001, with respect to motor
30 fuel, as defined in Section 1.1 of the Motor Fuel Tax Law,
31 and gasohol, as defined in Section 3-40 of the Use Tax Act,
32 the tax is imposed at the rate of 1.25%. The changes to this
33 Section made by this amendatory Act of the 92nd General
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1 Assembly are exempt from the provisions of Section 3-90.
2 With respect to gasohol, the tax imposed by this Act
3 applies to 70% of the proceeds of sales made on or after
4 January 1, 1990, and before July 1, 2003, and to 100% of the
5 proceeds of sales made thereafter.
6 With respect to food for human consumption that is to be
7 consumed off the premises where it is sold (other than
8 alcoholic beverages, soft drinks, and food that has been
9 prepared for immediate consumption) and prescription and
10 nonprescription medicines, drugs, medical appliances,
11 modifications to a motor vehicle for the purpose of rendering
12 it usable by a disabled person, and insulin, urine testing
13 materials, syringes, and needles used by diabetics, for human
14 use, the tax is imposed at the rate of 1%. For the purposes
15 of this Section, the term "soft drinks" means any complete,
16 finished, ready-to-use, non-alcoholic drink, whether
17 carbonated or not, including but not limited to soda water,
18 cola, fruit juice, vegetable juice, carbonated water, and all
19 other preparations commonly known as soft drinks of whatever
20 kind or description that are contained in any closed or
21 sealed bottle, can, carton, or container, regardless of size.
22 "Soft drinks" does not include coffee, tea, non-carbonated
23 water, infant formula, milk or milk products as defined in
24 the Grade A Pasteurized Milk and Milk Products Act, or drinks
25 containing 50% or more natural fruit or vegetable juice.
26 Notwithstanding any other provisions of this Act, "food
27 for human consumption that is to be consumed off the premises
28 where it is sold" includes all food sold through a vending
29 machine, except soft drinks and food products that are
30 dispensed hot from a vending machine, regardless of the
31 location of the vending machine.
32 With respect to any motor vehicle (as the term "motor
33 vehicle" is defined in Section 1a of this Act) that is
34 purchased by a lessor for purposes of leasing under a lease
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1 subject to the Automobile Leasing Occupation and Use Tax Act,
2 the tax is imposed at the rate of 1.25%.
3 With respect to any motor vehicle (as the term "motor
4 vehicle" is defined in Section 1a of this Act) that has been
5 leased by a lessor to a lessee under a lease that is subject
6 to the Automobile Leasing Occupation and Use Tax Act, and is
7 subsequently purchased by the lessee of such vehicle, the tax
8 is imposed at the rate of 5%.
9 If the property that is purchased at retail from a
10 retailer is acquired outside Illinois and used outside
11 Illinois before being brought to Illinois for use here and is
12 taxable under this Act, the "selling price" on which the tax
13 is computed shall be reduced by an amount that represents a
14 reasonable allowance for depreciation for the period of prior
15 out-of-state use.
16 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
17 91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)
18 (35 ILCS 105/3-87 new)
19 Sec. 3-87. Gasohol retailer credit. For sales of
20 gasohol, as defined in Section 3-40 of this Act, made on or
21 after December 1, 2001, a retailer is entitled to a credit
22 against the retailer's tax liability under this Act of 2
23 cents per gallon of gasohol sold.
24 (35 ILCS 105/3b new)
25 Sec. 3b. Tax holiday for clothing and footwear.
26 (a) Notwithstanding any other provision to the contrary,
27 no tax shall be imposed under this Act upon the privilege of
28 using in this State an individual item of clothing or
29 footwear designed to be worn about the human body purchased
30 at retail from a retailer if that item of clothing or that
31 footwear (i) is purchased for a selling price of $200 or less
32 and (ii) is purchased from 12:01 a.m. on the first Friday in
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1 August through midnight of the Sunday that follows 9 days
2 later. Any discount, coupon, or other credit offered either
3 by the retailer or by a vendor of the retailer to reduce the
4 final price to the customer shall be taken into account in
5 determining the selling price of the item for purposes of
6 this holiday.
7 (b) A unit of local government may, by ordinance adopted
8 by that unit of local government, opt out of the tax holiday
9 imposed by this Section and continue to collect and remit the
10 tax imposed under this Act during the tax holiday period.
11 (c) Articles that are normally sold as a unit must
12 continue to be sold in that manner; they cannot be priced
13 separately and sold as individual items in order to be
14 subject to the holiday. For example, if a pair of shoes
15 sells for $250, the pair cannot be split in order to sell
16 each shoe for $125 to qualify for the holiday. If a suit is
17 normally priced at $250 on a single price tag, the suit
18 cannot be split into separate articles so that any of the
19 components may be sold for less than $200 in order to qualify
20 for the holiday. However, components that are normally
21 priced as separate articles may continue to be sold as
22 separate articles and qualify for the holiday if the price of
23 an article is less than $200.
24 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
25 Sec. 9. Except as to motor vehicles, watercraft,
26 aircraft, and trailers that are required to be registered
27 with an agency of this State, each retailer required or
28 authorized to collect the tax imposed by this Act shall pay
29 to the Department the amount of such tax (except as otherwise
30 provided) at the time when he is required to file his return
31 for the period during which such tax was collected, less a
32 discount of 2.1% prior to January 1, 1990, and 1.75% on and
33 after January 1, 1990, or $5 per calendar year, whichever is
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1 greater, which is allowed to reimburse the retailer for
2 expenses incurred in collecting the tax, keeping records,
3 preparing and filing returns, remitting the tax and supplying
4 data to the Department on request. In the case of retailers
5 who report and pay the tax on a transaction by transaction
6 basis, as provided in this Section, such discount shall be
7 taken with each such tax remittance instead of when such
8 retailer files his periodic return. A retailer need not
9 remit that part of any tax collected by him to the extent
10 that he is required to remit and does remit the tax imposed
11 by the Retailers' Occupation Tax Act, with respect to the
12 sale of the same property.
13 Where such tangible personal property is sold under a
14 conditional sales contract, or under any other form of sale
15 wherein the payment of the principal sum, or a part thereof,
16 is extended beyond the close of the period for which the
17 return is filed, the retailer, in collecting the tax (except
18 as to motor vehicles, watercraft, aircraft, and trailers that
19 are required to be registered with an agency of this State),
20 may collect for each tax return period, only the tax
21 applicable to that part of the selling price actually
22 received during such tax return period.
23 Except as provided in this Section, on or before the
24 twentieth day of each calendar month, such retailer shall
25 file a return for the preceding calendar month. Such return
26 shall be filed on forms prescribed by the Department and
27 shall furnish such information as the Department may
28 reasonably require.
29 The Department may require returns to be filed on a
30 quarterly basis. If so required, a return for each calendar
31 quarter shall be filed on or before the twentieth day of the
32 calendar month following the end of such calendar quarter.
33 The taxpayer shall also file a return with the Department for
34 each of the first two months of each calendar quarter, on or
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1 before the twentieth day of the following calendar month,
2 stating:
3 1. The name of the seller;
4 2. The address of the principal place of business
5 from which he engages in the business of selling tangible
6 personal property at retail in this State;
7 3. The total amount of taxable receipts received by
8 him during the preceding calendar month from sales of
9 tangible personal property by him during such preceding
10 calendar month, including receipts from charge and time
11 sales, but less all deductions allowed by law;
12 4. The amount of credit provided in Section 2d of
13 this Act;
14 5. The amount of tax due;
15 5-5. The signature of the taxpayer; and
16 6. Such other reasonable information as the
17 Department may require.
18 If a taxpayer fails to sign a return within 30 days after
19 the proper notice and demand for signature by the Department,
20 the return shall be considered valid and any amount shown to
21 be due on the return shall be deemed assessed.
22 Beginning October 1, 1993, a taxpayer who has an average
23 monthly tax liability of $150,000 or more shall make all
24 payments required by rules of the Department by electronic
25 funds transfer. Beginning October 1, 1994, a taxpayer who has
26 an average monthly tax liability of $100,000 or more shall
27 make all payments required by rules of the Department by
28 electronic funds transfer. Beginning October 1, 1995, a
29 taxpayer who has an average monthly tax liability of $50,000
30 or more shall make all payments required by rules of the
31 Department by electronic funds transfer. Beginning October 1,
32 2000, a taxpayer who has an annual tax liability of $200,000
33 or more shall make all payments required by rules of the
34 Department by electronic funds transfer. The term "annual
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1 tax liability" shall be the sum of the taxpayer's liabilities
2 under this Act, and under all other State and local
3 occupation and use tax laws administered by the Department,
4 for the immediately preceding calendar year. The term
5 "average monthly tax liability" means the sum of the
6 taxpayer's liabilities under this Act, and under all other
7 State and local occupation and use tax laws administered by
8 the Department, for the immediately preceding calendar year
9 divided by 12.
10 Before August 1 of each year beginning in 1993, the
11 Department shall notify all taxpayers required to make
12 payments by electronic funds transfer. All taxpayers required
13 to make payments by electronic funds transfer shall make
14 those payments for a minimum of one year beginning on October
15 1.
16 Any taxpayer not required to make payments by electronic
17 funds transfer may make payments by electronic funds transfer
18 with the permission of the Department.
19 All taxpayers required to make payment by electronic
20 funds transfer and any taxpayers authorized to voluntarily
21 make payments by electronic funds transfer shall make those
22 payments in the manner authorized by the Department.
23 The Department shall adopt such rules as are necessary to
24 effectuate a program of electronic funds transfer and the
25 requirements of this Section.
26 Before October 1, 2000, if the taxpayer's average monthly
27 tax liability to the Department under this Act, the
28 Retailers' Occupation Tax Act, the Service Occupation Tax
29 Act, the Service Use Tax Act was $10,000 or more during the
30 preceding 4 complete calendar quarters, he shall file a
31 return with the Department each month by the 20th day of the
32 month next following the month during which such tax
33 liability is incurred and shall make payments to the
34 Department on or before the 7th, 15th, 22nd and last day of
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1 the month during which such liability is incurred. On and
2 after October 1, 2000, if the taxpayer's average monthly tax
3 liability to the Department under this Act, the Retailers'
4 Occupation Tax Act, the Service Occupation Tax Act, and the
5 Service Use Tax Act was $20,000 or more during the preceding
6 4 complete calendar quarters, he shall file a return with the
7 Department each month by the 20th day of the month next
8 following the month during which such tax liability is
9 incurred and shall make payment to the Department on or
10 before the 7th, 15th, 22nd and last day of the month during
11 which such liability is incurred. If the month during which
12 such tax liability is incurred began prior to January 1,
13 1985, each payment shall be in an amount equal to 1/4 of the
14 taxpayer's actual liability for the month or an amount set by
15 the Department not to exceed 1/4 of the average monthly
16 liability of the taxpayer to the Department for the preceding
17 4 complete calendar quarters (excluding the month of highest
18 liability and the month of lowest liability in such 4 quarter
19 period). If the month during which such tax liability is
20 incurred begins on or after January 1, 1985, and prior to
21 January 1, 1987, each payment shall be in an amount equal to
22 22.5% of the taxpayer's actual liability for the month or
23 27.5% of the taxpayer's liability for the same calendar month
24 of the preceding year. If the month during which such tax
25 liability is incurred begins on or after January 1, 1987, and
26 prior to January 1, 1988, each payment shall be in an amount
27 equal to 22.5% of the taxpayer's actual liability for the
28 month or 26.25% of the taxpayer's liability for the same
29 calendar month of the preceding year. If the month during
30 which such tax liability is incurred begins on or after
31 January 1, 1988, and prior to January 1, 1989, or begins on
32 or after January 1, 1996, each payment shall be in an amount
33 equal to 22.5% of the taxpayer's actual liability for the
34 month or 25% of the taxpayer's liability for the same
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1 calendar month of the preceding year. If the month during
2 which such tax liability is incurred begins on or after
3 January 1, 1989, and prior to January 1, 1996, each payment
4 shall be in an amount equal to 22.5% of the taxpayer's actual
5 liability for the month or 25% of the taxpayer's liability
6 for the same calendar month of the preceding year or 100% of
7 the taxpayer's actual liability for the quarter monthly
8 reporting period. The amount of such quarter monthly
9 payments shall be credited against the final tax liability of
10 the taxpayer's return for that month. Before October 1,
11 2000, once applicable, the requirement of the making of
12 quarter monthly payments to the Department shall continue
13 until such taxpayer's average monthly liability to the
14 Department during the preceding 4 complete calendar quarters
15 (excluding the month of highest liability and the month of
16 lowest liability) is less than $9,000, or until such
17 taxpayer's average monthly liability to the Department as
18 computed for each calendar quarter of the 4 preceding
19 complete calendar quarter period is less than $10,000.
20 However, if a taxpayer can show the Department that a
21 substantial change in the taxpayer's business has occurred
22 which causes the taxpayer to anticipate that his average
23 monthly tax liability for the reasonably foreseeable future
24 will fall below the $10,000 threshold stated above, then such
25 taxpayer may petition the Department for change in such
26 taxpayer's reporting status. On and after October 1, 2000,
27 once applicable, the requirement of the making of quarter
28 monthly payments to the Department shall continue until such
29 taxpayer's average monthly liability to the Department during
30 the preceding 4 complete calendar quarters (excluding the
31 month of highest liability and the month of lowest liability)
32 is less than $19,000 or until such taxpayer's average monthly
33 liability to the Department as computed for each calendar
34 quarter of the 4 preceding complete calendar quarter period
-112- LRB9201889SMdvam01
1 is less than $20,000. However, if a taxpayer can show the
2 Department that a substantial change in the taxpayer's
3 business has occurred which causes the taxpayer to anticipate
4 that his average monthly tax liability for the reasonably
5 foreseeable future will fall below the $20,000 threshold
6 stated above, then such taxpayer may petition the Department
7 for a change in such taxpayer's reporting status. The
8 Department shall change such taxpayer's reporting status
9 unless it finds that such change is seasonal in nature and
10 not likely to be long term. If any such quarter monthly
11 payment is not paid at the time or in the amount required by
12 this Section, then the taxpayer shall be liable for penalties
13 and interest on the difference between the minimum amount due
14 and the amount of such quarter monthly payment actually and
15 timely paid, except insofar as the taxpayer has previously
16 made payments for that month to the Department in excess of
17 the minimum payments previously due as provided in this
18 Section. The Department shall make reasonable rules and
19 regulations to govern the quarter monthly payment amount and
20 quarter monthly payment dates for taxpayers who file on other
21 than a calendar monthly basis.
22 If any such payment provided for in this Section exceeds
23 the taxpayer's liabilities under this Act, the Retailers'
24 Occupation Tax Act, the Service Occupation Tax Act and the
25 Service Use Tax Act, as shown by an original monthly return,
26 the Department shall issue to the taxpayer a credit
27 memorandum no later than 30 days after the date of payment,
28 which memorandum may be submitted by the taxpayer to the
29 Department in payment of tax liability subsequently to be
30 remitted by the taxpayer to the Department or be assigned by
31 the taxpayer to a similar taxpayer under this Act, the
32 Retailers' Occupation Tax Act, the Service Occupation Tax Act
33 or the Service Use Tax Act, in accordance with reasonable
34 rules and regulations to be prescribed by the Department,
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1 except that if such excess payment is shown on an original
2 monthly return and is made after December 31, 1986, no credit
3 memorandum shall be issued, unless requested by the taxpayer.
4 If no such request is made, the taxpayer may credit such
5 excess payment against tax liability subsequently to be
6 remitted by the taxpayer to the Department under this Act,
7 the Retailers' Occupation Tax Act, the Service Occupation Tax
8 Act or the Service Use Tax Act, in accordance with reasonable
9 rules and regulations prescribed by the Department. If the
10 Department subsequently determines that all or any part of
11 the credit taken was not actually due to the taxpayer, the
12 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
13 by 2.1% or 1.75% of the difference between the credit taken
14 and that actually due, and the taxpayer shall be liable for
15 penalties and interest on such difference.
16 If the retailer is otherwise required to file a monthly
17 return and if the retailer's average monthly tax liability to
18 the Department does not exceed $200, the Department may
19 authorize his returns to be filed on a quarter annual basis,
20 with the return for January, February, and March of a given
21 year being due by April 20 of such year; with the return for
22 April, May and June of a given year being due by July 20 of
23 such year; with the return for July, August and September of
24 a given year being due by October 20 of such year, and with
25 the return for October, November and December of a given year
26 being due by January 20 of the following year.
27 If the retailer is otherwise required to file a monthly
28 or quarterly return and if the retailer's average monthly tax
29 liability to the Department does not exceed $50, the
30 Department may authorize his returns to be filed on an annual
31 basis, with the return for a given year being due by January
32 20 of the following year.
33 Such quarter annual and annual returns, as to form and
34 substance, shall be subject to the same requirements as
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1 monthly returns.
2 Notwithstanding any other provision in this Act
3 concerning the time within which a retailer may file his
4 return, in the case of any retailer who ceases to engage in a
5 kind of business which makes him responsible for filing
6 returns under this Act, such retailer shall file a final
7 return under this Act with the Department not more than one
8 month after discontinuing such business.
9 In addition, with respect to motor vehicles, watercraft,
10 aircraft, and trailers that are required to be registered
11 with an agency of this State, every retailer selling this
12 kind of tangible personal property shall file, with the
13 Department, upon a form to be prescribed and supplied by the
14 Department, a separate return for each such item of tangible
15 personal property which the retailer sells, except that if,
16 in the same transaction, (i) a retailer of aircraft,
17 watercraft, motor vehicles or trailers transfers more than
18 one aircraft, watercraft, motor vehicle or trailer to another
19 aircraft, watercraft, motor vehicle or trailer retailer for
20 the purpose of resale or (ii) a retailer of aircraft,
21 watercraft, motor vehicles, or trailers transfers more than
22 one aircraft, watercraft, motor vehicle, or trailer to a
23 purchaser for use as a qualifying rolling stock as provided
24 in Section 3-55 of this Act, then that seller may report the
25 transfer of all the aircraft, watercraft, motor vehicles or
26 trailers involved in that transaction to the Department on
27 the same uniform invoice-transaction reporting return form.
28 For purposes of this Section, "watercraft" means a Class 2,
29 Class 3, or Class 4 watercraft as defined in Section 3-2 of
30 the Boat Registration and Safety Act, a personal watercraft,
31 or any boat equipped with an inboard motor.
32 The transaction reporting return in the case of motor
33 vehicles or trailers that are required to be registered with
34 an agency of this State, shall be the same document as the
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1 Uniform Invoice referred to in Section 5-402 of the Illinois
2 Vehicle Code and must show the name and address of the
3 seller; the name and address of the purchaser; the amount of
4 the selling price including the amount allowed by the
5 retailer for traded-in property, if any; the amount allowed
6 by the retailer for the traded-in tangible personal property,
7 if any, to the extent to which Section 2 of this Act allows
8 an exemption for the value of traded-in property; the balance
9 payable after deducting such trade-in allowance from the
10 total selling price; the amount of tax due from the retailer
11 with respect to such transaction; the amount of tax collected
12 from the purchaser by the retailer on such transaction (or
13 satisfactory evidence that such tax is not due in that
14 particular instance, if that is claimed to be the fact); the
15 place and date of the sale; a sufficient identification of
16 the property sold; such other information as is required in
17 Section 5-402 of the Illinois Vehicle Code, and such other
18 information as the Department may reasonably require.
19 The transaction reporting return in the case of
20 watercraft and aircraft must show the name and address of the
21 seller; the name and address of the purchaser; the amount of
22 the selling price including the amount allowed by the
23 retailer for traded-in property, if any; the amount allowed
24 by the retailer for the traded-in tangible personal property,
25 if any, to the extent to which Section 2 of this Act allows
26 an exemption for the value of traded-in property; the balance
27 payable after deducting such trade-in allowance from the
28 total selling price; the amount of tax due from the retailer
29 with respect to such transaction; the amount of tax collected
30 from the purchaser by the retailer on such transaction (or
31 satisfactory evidence that such tax is not due in that
32 particular instance, if that is claimed to be the fact); the
33 place and date of the sale, a sufficient identification of
34 the property sold, and such other information as the
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1 Department may reasonably require.
2 Such transaction reporting return shall be filed not
3 later than 20 days after the date of delivery of the item
4 that is being sold, but may be filed by the retailer at any
5 time sooner than that if he chooses to do so. The
6 transaction reporting return and tax remittance or proof of
7 exemption from the tax that is imposed by this Act may be
8 transmitted to the Department by way of the State agency with
9 which, or State officer with whom, the tangible personal
10 property must be titled or registered (if titling or
11 registration is required) if the Department and such agency
12 or State officer determine that this procedure will expedite
13 the processing of applications for title or registration.
14 With each such transaction reporting return, the retailer
15 shall remit the proper amount of tax due (or shall submit
16 satisfactory evidence that the sale is not taxable if that is
17 the case), to the Department or its agents, whereupon the
18 Department shall issue, in the purchaser's name, a tax
19 receipt (or a certificate of exemption if the Department is
20 satisfied that the particular sale is tax exempt) which such
21 purchaser may submit to the agency with which, or State
22 officer with whom, he must title or register the tangible
23 personal property that is involved (if titling or
24 registration is required) in support of such purchaser's
25 application for an Illinois certificate or other evidence of
26 title or registration to such tangible personal property.
27 No retailer's failure or refusal to remit tax under this
28 Act precludes a user, who has paid the proper tax to the
29 retailer, from obtaining his certificate of title or other
30 evidence of title or registration (if titling or registration
31 is required) upon satisfying the Department that such user
32 has paid the proper tax (if tax is due) to the retailer. The
33 Department shall adopt appropriate rules to carry out the
34 mandate of this paragraph.
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1 If the user who would otherwise pay tax to the retailer
2 wants the transaction reporting return filed and the payment
3 of tax or proof of exemption made to the Department before
4 the retailer is willing to take these actions and such user
5 has not paid the tax to the retailer, such user may certify
6 to the fact of such delay by the retailer, and may (upon the
7 Department being satisfied of the truth of such
8 certification) transmit the information required by the
9 transaction reporting return and the remittance for tax or
10 proof of exemption directly to the Department and obtain his
11 tax receipt or exemption determination, in which event the
12 transaction reporting return and tax remittance (if a tax
13 payment was required) shall be credited by the Department to
14 the proper retailer's account with the Department, but
15 without the 2.1% or 1.75% discount provided for in this
16 Section being allowed. When the user pays the tax directly
17 to the Department, he shall pay the tax in the same amount
18 and in the same form in which it would be remitted if the tax
19 had been remitted to the Department by the retailer.
20 Where a retailer collects the tax with respect to the
21 selling price of tangible personal property which he sells
22 and the purchaser thereafter returns such tangible personal
23 property and the retailer refunds the selling price thereof
24 to the purchaser, such retailer shall also refund, to the
25 purchaser, the tax so collected from the purchaser. When
26 filing his return for the period in which he refunds such tax
27 to the purchaser, the retailer may deduct the amount of the
28 tax so refunded by him to the purchaser from any other use
29 tax which such retailer may be required to pay or remit to
30 the Department, as shown by such return, if the amount of the
31 tax to be deducted was previously remitted to the Department
32 by such retailer. If the retailer has not previously
33 remitted the amount of such tax to the Department, he is
34 entitled to no deduction under this Act upon refunding such
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1 tax to the purchaser.
2 Any retailer filing a return under this Section shall
3 also include (for the purpose of paying tax thereon) the
4 total tax covered by such return upon the selling price of
5 tangible personal property purchased by him at retail from a
6 retailer, but as to which the tax imposed by this Act was not
7 collected from the retailer filing such return, and such
8 retailer shall remit the amount of such tax to the Department
9 when filing such return.
10 If experience indicates such action to be practicable,
11 the Department may prescribe and furnish a combination or
12 joint return which will enable retailers, who are required to
13 file returns hereunder and also under the Retailers'
14 Occupation Tax Act, to furnish all the return information
15 required by both Acts on the one form.
16 Where the retailer has more than one business registered
17 with the Department under separate registration under this
18 Act, such retailer may not file each return that is due as a
19 single return covering all such registered businesses, but
20 shall file separate returns for each such registered
21 business.
22 Beginning January 1, 1990, each month the Department
23 shall pay into the State and Local Sales Tax Reform Fund, a
24 special fund in the State Treasury which is hereby created,
25 the net revenue realized for the preceding month from the 1%
26 tax on sales of food for human consumption which is to be
27 consumed off the premises where it is sold (other than
28 alcoholic beverages, soft drinks and food which has been
29 prepared for immediate consumption) and prescription and
30 nonprescription medicines, drugs, medical appliances and
31 insulin, urine testing materials, syringes and needles used
32 by diabetics.
33 Beginning January 1, 1990, each month the Department
34 shall pay into the County and Mass Transit District Fund 4%
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1 of the net revenue realized for the preceding month from the
2 6.25% general rate on the selling price of tangible personal
3 property which is purchased outside Illinois at retail from a
4 retailer and which is titled or registered by an agency of
5 this State's government.
6 Beginning January 1, 1990, each month the Department
7 shall pay into the State and Local Sales Tax Reform Fund, a
8 special fund in the State Treasury, 20% of the net revenue
9 realized for the preceding month from the 6.25% general rate
10 on the selling price of tangible personal property, other
11 than tangible personal property which is purchased outside
12 Illinois at retail from a retailer and which is titled or
13 registered by an agency of this State's government.
14 Beginning August 1, 2000, each month the Department shall
15 pay into the State and Local Sales Tax Reform Fund 100% of
16 the net revenue realized for the preceding month from the
17 1.25% rate on the selling price of motor fuel and gasohol.
18 Each month the Department shall pay into the County and
19 Mass Transit District Fund 20% the net revenue realized for
20 the preceding month from the 1.25% rate imposed upon the
21 selling price of any motor vehicle that is purchased outside
22 Illinois at retail by a lessor for purposes of leasing under
23 a lease subject to the Automobile Leasing Occupation and Use
24 Tax Act and which is titled or registered by an agency of
25 this State's government.
26 Beginning January 1, 1990, each month the Department
27 shall pay into the Local Government Tax Fund 16% of the net
28 revenue realized for the preceding month from the 6.25%
29 general rate on the selling price of tangible personal
30 property which is purchased outside Illinois at retail from a
31 retailer and which is titled or registered by an agency of
32 this State's government.
33 Each month the Department shall pay into the Local
34 Government Tax Fund 80% of the net revenue realized for the
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1 preceding month from the 1.25% rate imposed upon the selling
2 price of any motor vehicle that is purchased outside Illinois
3 at retail by a lessor for purposes of leasing under a lease
4 subject to the Automobile Leasing Occupation and Use Tax Act
5 and which is titled or registered by an agency of this
6 State's government.
7 Of the remainder of the moneys received by the Department
8 pursuant to this Act, and including all moneys received by
9 the Department under Section 20 of the Automobile Leasing
10 Occupation and Use Tax Act and including all of the moneys
11 received pursuant to the 5% rate imposed upon the selling
12 price of any motor vehicle that is purchased from lessors by
13 lessees of such vehicles in connection with a lease that was
14 subject to the Automobile Leasing Occupation and Use Tax Act
15 Of the remainder of the moneys received by the Department
16 pursuant to this Act, (a) 1.75% thereof shall be paid into
17 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
18 and on and after July 1, 1989, 3.8% thereof shall be paid
19 into the Build Illinois Fund; provided, however, that if in
20 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
21 as the case may be, of the moneys received by the Department
22 and required to be paid into the Build Illinois Fund pursuant
23 to Section 3 of the Retailers' Occupation Tax Act, Section 9
24 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
25 Section 9 of the Service Occupation Tax Act, such Acts being
26 hereinafter called the "Tax Acts" and such aggregate of 2.2%
27 or 3.8%, as the case may be, of moneys being hereinafter
28 called the "Tax Act Amount", and (2) the amount transferred
29 to the Build Illinois Fund from the State and Local Sales Tax
30 Reform Fund shall be less than the Annual Specified Amount
31 (as defined in Section 3 of the Retailers' Occupation Tax
32 Act), an amount equal to the difference shall be immediately
33 paid into the Build Illinois Fund from other moneys received
34 by the Department pursuant to the Tax Acts; and further
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1 provided, that if on the last business day of any month the
2 sum of (1) the Tax Act Amount required to be deposited into
3 the Build Illinois Bond Account in the Build Illinois Fund
4 during such month and (2) the amount transferred during such
5 month to the Build Illinois Fund from the State and Local
6 Sales Tax Reform Fund shall have been less than 1/12 of the
7 Annual Specified Amount, an amount equal to the difference
8 shall be immediately paid into the Build Illinois Fund from
9 other moneys received by the Department pursuant to the Tax
10 Acts; and, further provided, that in no event shall the
11 payments required under the preceding proviso result in
12 aggregate payments into the Build Illinois Fund pursuant to
13 this clause (b) for any fiscal year in excess of the greater
14 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
15 for such fiscal year; and, further provided, that the amounts
16 payable into the Build Illinois Fund under this clause (b)
17 shall be payable only until such time as the aggregate amount
18 on deposit under each trust indenture securing Bonds issued
19 and outstanding pursuant to the Build Illinois Bond Act is
20 sufficient, taking into account any future investment income,
21 to fully provide, in accordance with such indenture, for the
22 defeasance of or the payment of the principal of, premium, if
23 any, and interest on the Bonds secured by such indenture and
24 on any Bonds expected to be issued thereafter and all fees
25 and costs payable with respect thereto, all as certified by
26 the Director of the Bureau of the Budget. If on the last
27 business day of any month in which Bonds are outstanding
28 pursuant to the Build Illinois Bond Act, the aggregate of the
29 moneys deposited in the Build Illinois Bond Account in the
30 Build Illinois Fund in such month shall be less than the
31 amount required to be transferred in such month from the
32 Build Illinois Bond Account to the Build Illinois Bond
33 Retirement and Interest Fund pursuant to Section 13 of the
34 Build Illinois Bond Act, an amount equal to such deficiency
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1 shall be immediately paid from other moneys received by the
2 Department pursuant to the Tax Acts to the Build Illinois
3 Fund; provided, however, that any amounts paid to the Build
4 Illinois Fund in any fiscal year pursuant to this sentence
5 shall be deemed to constitute payments pursuant to clause (b)
6 of the preceding sentence and shall reduce the amount
7 otherwise payable for such fiscal year pursuant to clause (b)
8 of the preceding sentence. The moneys received by the
9 Department pursuant to this Act and required to be deposited
10 into the Build Illinois Fund are subject to the pledge, claim
11 and charge set forth in Section 12 of the Build Illinois Bond
12 Act.
13 Subject to payment of amounts into the Build Illinois
14 Fund as provided in the preceding paragraph or in any
15 amendment thereto hereafter enacted, the following specified
16 monthly installment of the amount requested in the
17 certificate of the Chairman of the Metropolitan Pier and
18 Exposition Authority provided under Section 8.25f of the
19 State Finance Act, but not in excess of the sums designated
20 as "Total Deposit", shall be deposited in the aggregate from
21 collections under Section 9 of the Use Tax Act, Section 9 of
22 the Service Use Tax Act, Section 9 of the Service Occupation
23 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
24 into the McCormick Place Expansion Project Fund in the
25 specified fiscal years.
26 Fiscal Year Total Deposit
27 1993 $0
28 1994 53,000,000
29 1995 58,000,000
30 1996 61,000,000
31 1997 64,000,000
32 1998 68,000,000
33 1999 71,000,000
34 2000 75,000,000
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1 2001 80,000,000
2 2002 84,000,000
3 2003 89,000,000
4 2004 93,000,000
5 2005 97,000,000
6 2006 102,000,000
7 2007 108,000,000
8 2008 115,000,000
9 2009 120,000,000
10 2010 126,000,000
11 2011 132,000,000
12 2012 138,000,000
13 2013 and 145,000,000
14 each fiscal year
15 thereafter that bonds
16 are outstanding under
17 Section 13.2 of the
18 Metropolitan Pier and
19 Exposition Authority
20 Act, but not after fiscal year 2029.
21 Beginning July 20, 1993 and in each month of each fiscal
22 year thereafter, one-eighth of the amount requested in the
23 certificate of the Chairman of the Metropolitan Pier and
24 Exposition Authority for that fiscal year, less the amount
25 deposited into the McCormick Place Expansion Project Fund by
26 the State Treasurer in the respective month under subsection
27 (g) of Section 13 of the Metropolitan Pier and Exposition
28 Authority Act, plus cumulative deficiencies in the deposits
29 required under this Section for previous months and years,
30 shall be deposited into the McCormick Place Expansion Project
31 Fund, until the full amount requested for the fiscal year,
32 but not in excess of the amount specified above as "Total
33 Deposit", has been deposited.
34 Subject to payment of amounts into the Build Illinois
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1 Fund and the McCormick Place Expansion Project Fund pursuant
2 to the preceding paragraphs or in any amendment thereto
3 hereafter enacted, each month the Department shall pay into
4 the Local Government Distributive Fund .4% of the net revenue
5 realized for the preceding month from the 5% general rate, or
6 .4% of 80% of the net revenue realized for the preceding
7 month from the 6.25% general rate, as the case may be, on the
8 selling price of tangible personal property which amount
9 shall, subject to appropriation, be distributed as provided
10 in Section 2 of the State Revenue Sharing Act. No payments or
11 distributions pursuant to this paragraph shall be made if the
12 tax imposed by this Act on photoprocessing products is
13 declared unconstitutional, or if the proceeds from such tax
14 are unavailable for distribution because of litigation.
15 Subject to payment of amounts into the Build Illinois
16 Fund, the McCormick Place Expansion Project Fund, and the
17 Local Government Distributive Fund pursuant to the preceding
18 paragraphs or in any amendments thereto hereafter enacted,
19 beginning July 1, 1993, the Department shall each month pay
20 into the Illinois Tax Increment Fund 0.27% of 80% of the net
21 revenue realized for the preceding month from the 6.25%
22 general rate on the selling price of tangible personal
23 property.
24 Of the remainder of the moneys received by the Department
25 pursuant to this Act, 75% thereof shall be paid into the
26 State Treasury and 25% shall be reserved in a special account
27 and used only for the transfer to the Common School Fund as
28 part of the monthly transfer from the General Revenue Fund in
29 accordance with Section 8a of the State Finance Act.
30 As soon as possible after the first day of each month,
31 upon certification of the Department of Revenue, the
32 Comptroller shall order transferred and the Treasurer shall
33 transfer from the General Revenue Fund to the Motor Fuel Tax
34 Fund an amount equal to 1.7% of 80% of the net revenue
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1 realized under this Act for the second preceding month.
2 Beginning April 1, 2000, this transfer is no longer required
3 and shall not be made.
4 Net revenue realized for a month shall be the revenue
5 collected by the State pursuant to this Act, less the amount
6 paid out during that month as refunds to taxpayers for
7 overpayment of liability.
8 For greater simplicity of administration, manufacturers,
9 importers and wholesalers whose products are sold at retail
10 in Illinois by numerous retailers, and who wish to do so, may
11 assume the responsibility for accounting and paying to the
12 Department all tax accruing under this Act with respect to
13 such sales, if the retailers who are affected do not make
14 written objection to the Department to this arrangement.
15 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98;
16 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff.
17 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00; 91-901,
18 eff. 1-1-01; revised 8-30-00.)
19 Section 99-30. The Service Use Tax Act is amended by
20 changing Sections 3-5 and 3-10 and adding Section 3-72 as
21 follows:
22 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
23 Sec. 3-5. Exemptions. Use of the following tangible
24 personal property is exempt from the tax imposed by this Act:
25 (1) Personal property purchased from a corporation,
26 society, association, foundation, institution, or
27 organization, other than a limited liability company, that is
28 organized and operated as a not-for-profit service enterprise
29 for the benefit of persons 65 years of age or older if the
30 personal property was not purchased by the enterprise for the
31 purpose of resale by the enterprise.
32 (2) Personal property purchased by a non-profit Illinois
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1 county fair association for use in conducting, operating, or
2 promoting the county fair.
3 (3) Personal property purchased by a not-for-profit arts
4 or cultural organization that establishes, by proof required
5 by the Department by rule, that it has received an exemption
6 under Section 501(c)(3) of the Internal Revenue Code and that
7 is organized and operated for the presentation or support of
8 arts or cultural programming, activities, or services. These
9 organizations include, but are not limited to, music and
10 dramatic arts organizations such as symphony orchestras and
11 theatrical groups, arts and cultural service organizations,
12 local arts councils, visual arts organizations, and media
13 arts organizations.
14 (4) Legal tender, currency, medallions, or gold or
15 silver coinage issued by the State of Illinois, the
16 government of the United States of America, or the government
17 of any foreign country, and bullion.
18 (5) Graphic arts machinery and equipment, including
19 repair and replacement parts, both new and used, and
20 including that manufactured on special order or purchased for
21 lease, certified by the purchaser to be used primarily for
22 graphic arts production.
23 (6) Personal property purchased from a teacher-sponsored
24 student organization affiliated with an elementary or
25 secondary school located in Illinois.
26 (7) Farm machinery and equipment, both new and used,
27 including that manufactured on special order, certified by
28 the purchaser to be used primarily for production agriculture
29 or State or federal agricultural programs, including
30 individual replacement parts for the machinery and equipment,
31 including machinery and equipment purchased for lease, and
32 including implements of husbandry defined in Section 1-130 of
33 the Illinois Vehicle Code, farm machinery and agricultural
34 chemical and fertilizer spreaders, and nurse wagons required
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1 to be registered under Section 3-809 of the Illinois Vehicle
2 Code, but excluding other motor vehicles required to be
3 registered under the Illinois Vehicle Code. Horticultural
4 polyhouses or hoop houses used for propagating, growing, or
5 overwintering plants shall be considered farm machinery and
6 equipment under this item (7). Agricultural chemical tender
7 tanks and dry boxes shall include units sold separately from
8 a motor vehicle required to be licensed and units sold
9 mounted on a motor vehicle required to be licensed if the
10 selling price of the tender is separately stated.
11 Farm machinery and equipment shall include precision
12 farming equipment that is installed or purchased to be
13 installed on farm machinery and equipment including, but not
14 limited to, tractors, harvesters, sprayers, planters,
15 seeders, or spreaders. Precision farming equipment includes,
16 but is not limited to, soil testing sensors, computers,
17 monitors, software, global positioning and mapping systems,
18 and other such equipment.
19 Farm machinery and equipment also includes computers,
20 sensors, software, and related equipment used primarily in
21 the computer-assisted operation of production agriculture
22 facilities, equipment, and activities such as, but not
23 limited to, the collection, monitoring, and correlation of
24 animal and crop data for the purpose of formulating animal
25 diets and agricultural chemicals. This item (7) is exempt
26 from the provisions of Section 3-75.
27 (8) Fuel and petroleum products sold to or used by an
28 air common carrier, certified by the carrier to be used for
29 consumption, shipment, or storage in the conduct of its
30 business as an air common carrier, for a flight destined for
31 or returning from a location or locations outside the United
32 States without regard to previous or subsequent domestic
33 stopovers.
34 (9) Proceeds of mandatory service charges separately
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1 stated on customers' bills for the purchase and consumption
2 of food and beverages acquired as an incident to the purchase
3 of a service from a serviceman, to the extent that the
4 proceeds of the service charge are in fact turned over as
5 tips or as a substitute for tips to the employees who
6 participate directly in preparing, serving, hosting or
7 cleaning up the food or beverage function with respect to
8 which the service charge is imposed.
9 (10) Oil field exploration, drilling, and production
10 equipment, including (i) rigs and parts of rigs, rotary rigs,
11 cable tool rigs, and workover rigs, (ii) pipe and tubular
12 goods, including casing and drill strings, (iii) pumps and
13 pump-jack units, (iv) storage tanks and flow lines, (v) any
14 individual replacement part for oil field exploration,
15 drilling, and production equipment, and (vi) machinery and
16 equipment purchased for lease; but excluding motor vehicles
17 required to be registered under the Illinois Vehicle Code.
18 (11) Proceeds from the sale of photoprocessing machinery
19 and equipment, including repair and replacement parts, both
20 new and used, including that manufactured on special order,
21 certified by the purchaser to be used primarily for
22 photoprocessing, and including photoprocessing machinery and
23 equipment purchased for lease.
24 (12) Coal exploration, mining, offhighway hauling,
25 processing, maintenance, and reclamation equipment, including
26 replacement parts and equipment, and including equipment
27 purchased for lease, but excluding motor vehicles required to
28 be registered under the Illinois Vehicle Code.
29 (13) Semen used for artificial insemination of livestock
30 for direct agricultural production.
31 (14) Horses, or interests in horses, registered with and
32 meeting the requirements of any of the Arabian Horse Club
33 Registry of America, Appaloosa Horse Club, American Quarter
34 Horse Association, United States Trotting Association, or
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1 Jockey Club, as appropriate, used for purposes of breeding or
2 racing for prizes.
3 (15) Computers and communications equipment utilized for
4 any hospital purpose and equipment used in the diagnosis,
5 analysis, or treatment of hospital patients purchased by a
6 lessor who leases the equipment, under a lease of one year or
7 longer executed or in effect at the time the lessor would
8 otherwise be subject to the tax imposed by this Act, to a
9 hospital that has been issued an active tax exemption
10 identification number by the Department under Section 1g of
11 the Retailers' Occupation Tax Act. If the equipment is leased
12 in a manner that does not qualify for this exemption or is
13 used in any other non-exempt manner, the lessor shall be
14 liable for the tax imposed under this Act or the Use Tax Act,
15 as the case may be, based on the fair market value of the
16 property at the time the non-qualifying use occurs. No
17 lessor shall collect or attempt to collect an amount (however
18 designated) that purports to reimburse that lessor for the
19 tax imposed by this Act or the Use Tax Act, as the case may
20 be, if the tax has not been paid by the lessor. If a lessor
21 improperly collects any such amount from the lessee, the
22 lessee shall have a legal right to claim a refund of that
23 amount from the lessor. If, however, that amount is not
24 refunded to the lessee for any reason, the lessor is liable
25 to pay that amount to the Department.
26 (16) Personal property purchased by a lessor who leases
27 the property, under a lease of one year or longer executed or
28 in effect at the time the lessor would otherwise be subject
29 to the tax imposed by this Act, to a governmental body that
30 has been issued an active tax exemption identification number
31 by the Department under Section 1g of the Retailers'
32 Occupation Tax Act. If the property is leased in a manner
33 that does not qualify for this exemption or is used in any
34 other non-exempt manner, the lessor shall be liable for the
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1 tax imposed under this Act or the Use Tax Act, as the case
2 may be, based on the fair market value of the property at the
3 time the non-qualifying use occurs. No lessor shall collect
4 or attempt to collect an amount (however designated) that
5 purports to reimburse that lessor for the tax imposed by this
6 Act or the Use Tax Act, as the case may be, if the tax has
7 not been paid by the lessor. If a lessor improperly collects
8 any such amount from the lessee, the lessee shall have a
9 legal right to claim a refund of that amount from the lessor.
10 If, however, that amount is not refunded to the lessee for
11 any reason, the lessor is liable to pay that amount to the
12 Department.
13 (17) Beginning with taxable years ending on or after
14 December 31, 1995 and ending with taxable years ending on or
15 before December 31, 2004, personal property that is donated
16 for disaster relief to be used in a State or federally
17 declared disaster area in Illinois or bordering Illinois by a
18 manufacturer or retailer that is registered in this State to
19 a corporation, society, association, foundation, or
20 institution that has been issued a sales tax exemption
21 identification number by the Department that assists victims
22 of the disaster who reside within the declared disaster area.
23 (18) Beginning with taxable years ending on or after
24 December 31, 1995 and ending with taxable years ending on or
25 before December 31, 2004, personal property that is used in
26 the performance of infrastructure repairs in this State,
27 including but not limited to municipal roads and streets,
28 access roads, bridges, sidewalks, waste disposal systems,
29 water and sewer line extensions, water distribution and
30 purification facilities, storm water drainage and retention
31 facilities, and sewage treatment facilities, resulting from a
32 State or federally declared disaster in Illinois or bordering
33 Illinois when such repairs are initiated on facilities
34 located in the declared disaster area within 6 months after
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1 the disaster.
2 (19) Beginning July 1, 1999, game or game birds
3 purchased at a "game breeding and hunting preserve area" or
4 an "exotic game hunting area" as those terms are used in the
5 Wildlife Code or at a hunting enclosure approved through
6 rules adopted by the Department of Natural Resources. This
7 paragraph is exempt from the provisions of Section 3-75.
8 (20) (19) A motor vehicle, as that term is defined in
9 Section 1-146 of the Illinois Vehicle Code, that is donated
10 to a corporation, limited liability company, society,
11 association, foundation, or institution that is determined by
12 the Department to be organized and operated exclusively for
13 educational purposes. For purposes of this exemption, "a
14 corporation, limited liability company, society, association,
15 foundation, or institution organized and operated exclusively
16 for educational purposes" means all tax-supported public
17 schools, private schools that offer systematic instruction in
18 useful branches of learning by methods common to public
19 schools and that compare favorably in their scope and
20 intensity with the course of study presented in tax-supported
21 schools, and vocational or technical schools or institutes
22 organized and operated exclusively to provide a course of
23 study of not less than 6 weeks duration and designed to
24 prepare individuals to follow a trade or to pursue a manual,
25 technical, mechanical, industrial, business, or commercial
26 occupation.
27 (21) (20) Beginning January 1, 2000, personal property,
28 including food, purchased through fundraising events for the
29 benefit of a public or private elementary or secondary
30 school, a group of those schools, or one or more school
31 districts if the events are sponsored by an entity recognized
32 by the school district that consists primarily of volunteers
33 and includes parents and teachers of the school children.
34 This paragraph does not apply to fundraising events (i) for
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1 the benefit of private home instruction or (ii) for which the
2 fundraising entity purchases the personal property sold at
3 the events from another individual or entity that sold the
4 property for the purpose of resale by the fundraising entity
5 and that profits from the sale to the fundraising entity.
6 This paragraph is exempt from the provisions of Section 3-75.
7 (22) (19) Beginning January 1, 2000, new or used
8 automatic vending machines that prepare and serve hot food
9 and beverages, including coffee, soup, and other items, and
10 replacement parts for these machines. This paragraph is
11 exempt from the provisions of Section 3-75.
12 (23) Beginning January 1, 2002, tangible personal
13 property and its component parts purchased by a
14 telecommunications carrier if the property and parts are used
15 directly and primarily in transmitting, receiving, switching,
16 or recording any interactive, two-way electromagnetic
17 communications, including voice, image, data, and
18 information, through the use of any medium, including, but
19 not limited to, poles, wires, cables, switching equipment,
20 computers, and record storage devices and media. This
21 paragraph is exempt from the provisions of Section 3-75.
22 (24) Beginning on the effective date of this amendatory
23 Act of the 92nd General Assembly and ending 10 years after
24 the effective date of this amendatory Act of the 92nd General
25 Assembly, production related tangible personal property and
26 machinery and equipment, including repair and replacement
27 parts, both new and used, and including those items
28 manufactured on special order or purchased for lease,
29 certified by the purchaser to be essential to and used in the
30 integrated process of the production of electricity by an
31 eligible facility owned, operated, or leased by an exempt
32 wholesale generator. "Eligible facility" and "exempt
33 wholesale generator" shall mean "eligible facility" and
34 "exempt wholesale generator" as defined in Section 32 of the
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1 Public Utility Holding Company Act of 1935, 15 U.S.C. 79z-5a,
2 in effect as of the date of this amendatory Act of the 92nd
3 General Assembly. "Machinery" includes mechanical machines
4 and components of those machines that directly contribute to
5 or are directly used in or essential to the process of the
6 production of electricity. "Equipment" includes an
7 independent device or tool separate from machinery but
8 essential to an integrated electricity generation process;
9 including pipes of any kind used in the process of the
10 production of electricity; computers used primarily in
11 operating exempt machinery; any subunit or assembly
12 comprising a component of any machinery or auxiliary,
13 adjunct, or attachment parts of machinery, and any parts that
14 require periodic replacement in the course of normal
15 operation; but does not include hand tools. "Production
16 related tangible personal property" means all tangible
17 personal property directly used in or essential to the
18 process of the production of electricity including, but not
19 limited to, tangible personal property used in activities
20 such as preproduction material handling, receiving, quality
21 control, inventory control, storage, staging, and piping or
22 lines necessary for the transportation of water, natural gas,
23 steam, and similar items to and from an eligible facility for
24 use in the process of the production of electricity. This
25 paragraph (24) shall apply also to machinery and equipment
26 used in the general maintenance or repair of exempt machinery
27 and equipment. This paragraph is solely for the purpose of
28 determining whether the production related tangible personal
29 property defined in this paragraph is exempt from the tax
30 imposed by this Act. Nothing in this paragraph, including,
31 but not limited to, any definitions set forth in this
32 paragraph, shall be construed, applied, or relied upon in any
33 way to ascertain whether the property exempt from the tax
34 imposed by this Act is real property or personal property for
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1 the purpose of determining whether the property is subject to
2 ad valorem taxes on real property or to any other taxes. This
3 exemption does not apply to any additional tax imposed by the
4 Board of Directors of the Regional Transportation Authority
5 under Section 4.03 of the Regional Transportation Authority
6 Act.
7 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
8 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
9 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
10 eff. 8-20-99; revised 9-29-99.)
11 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
12 Sec. 3-10. Rate of tax. Unless otherwise provided in
13 this Section, the tax imposed by this Act is at the rate of
14 6.25% of the selling price of tangible personal property
15 transferred as an incident to the sale of service, but, for
16 the purpose of computing this tax, in no event shall the
17 selling price be less than the cost price of the property to
18 the serviceman.
19 Beginning on July 1, 2000 and through December 31, 2000,
20 and, beginning again on July 1, 2001, with respect to motor
21 fuel, as defined in Section 1.1 of the Motor Fuel Tax Law,
22 and gasohol, as defined in Section 3-40 of the Use Tax Act,
23 the tax is imposed at the rate of 1.25%. The changes to this
24 Section made by this amendatory Act of the 92nd General
25 Assembly are exempt from the provisions of Section 3-75.
26 With respect to gasohol, as defined in the Use Tax Act,
27 the tax imposed by this Act applies to 70% of the selling
28 price of property transferred as an incident to the sale of
29 service on or after January 1, 1990, and before July 1, 2003,
30 and to 100% of the selling price thereafter.
31 At the election of any registered serviceman made for
32 each fiscal year, sales of service in which the aggregate
33 annual cost price of tangible personal property transferred
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1 as an incident to the sales of service is less than 35%, or
2 75% in the case of servicemen transferring prescription drugs
3 or servicemen engaged in graphic arts production, of the
4 aggregate annual total gross receipts from all sales of
5 service, the tax imposed by this Act shall be based on the
6 serviceman's cost price of the tangible personal property
7 transferred as an incident to the sale of those services.
8 The tax shall be imposed at the rate of 1% on food
9 prepared for immediate consumption and transferred incident
10 to a sale of service subject to this Act or the Service
11 Occupation Tax Act by an entity licensed under the Hospital
12 Licensing Act, the Nursing Home Care Act, or the Child Care
13 Act of 1969. The tax shall also be imposed at the rate of 1%
14 on food for human consumption that is to be consumed off the
15 premises where it is sold (other than alcoholic beverages,
16 soft drinks, and food that has been prepared for immediate
17 consumption and is not otherwise included in this paragraph)
18 and prescription and nonprescription medicines, drugs,
19 medical appliances, modifications to a motor vehicle for the
20 purpose of rendering it usable by a disabled person, and
21 insulin, urine testing materials, syringes, and needles used
22 by diabetics, for human use. For the purposes of this
23 Section, the term "soft drinks" means any complete, finished,
24 ready-to-use, non-alcoholic drink, whether carbonated or not,
25 including but not limited to soda water, cola, fruit juice,
26 vegetable juice, carbonated water, and all other preparations
27 commonly known as soft drinks of whatever kind or description
28 that are contained in any closed or sealed bottle, can,
29 carton, or container, regardless of size. "Soft drinks" does
30 not include coffee, tea, non-carbonated water, infant
31 formula, milk or milk products as defined in the Grade A
32 Pasteurized Milk and Milk Products Act, or drinks containing
33 50% or more natural fruit or vegetable juice.
34 Notwithstanding any other provisions of this Act, "food
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1 for human consumption that is to be consumed off the premises
2 where it is sold" includes all food sold through a vending
3 machine, except soft drinks and food products that are
4 dispensed hot from a vending machine, regardless of the
5 location of the vending machine.
6 If the property that is acquired from a serviceman is
7 acquired outside Illinois and used outside Illinois before
8 being brought to Illinois for use here and is taxable under
9 this Act, the "selling price" on which the tax is computed
10 shall be reduced by an amount that represents a reasonable
11 allowance for depreciation for the period of prior
12 out-of-state use.
13 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
14 91-51, eff. 6-30-99; 91-541, eff. 8-13-99; 91-872, eff.
15 7-1-00.)
16 (35 ILCS 110/3-72 new)
17 Sec. 3-72. Gasohol retailer credit. For sales of
18 gasohol, as defined in Section 3-40 of the Use Tax Act, made
19 on or after December 1, 2001, a retailer is entitled to a
20 credit against the retailer's tax liability under this Act of
21 2 cents per gallon of gasohol sold.
22 Section 99-35. The Service Occupation Tax Act is amended
23 by changing Sections 3-5 and 3-10 and adding Section 3-52 as
24 follows:
25 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
26 Sec. 3-5. Exemptions. The following tangible personal
27 property is exempt from the tax imposed by this Act:
28 (1) Personal property sold by a corporation, society,
29 association, foundation, institution, or organization, other
30 than a limited liability company, that is organized and
31 operated as a not-for-profit service enterprise for the
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1 benefit of persons 65 years of age or older if the personal
2 property was not purchased by the enterprise for the purpose
3 of resale by the enterprise.
4 (2) Personal property purchased by a not-for-profit
5 Illinois county fair association for use in conducting,
6 operating, or promoting the county fair.
7 (3) Personal property purchased by any not-for-profit
8 arts or cultural organization that establishes, by proof
9 required by the Department by rule, that it has received an
10 exemption under Section 501(c)(3) of the Internal Revenue
11 Code and that is organized and operated for the presentation
12 or support of arts or cultural programming, activities, or
13 services. These organizations include, but are not limited
14 to, music and dramatic arts organizations such as symphony
15 orchestras and theatrical groups, arts and cultural service
16 organizations, local arts councils, visual arts
17 organizations, and media arts organizations.
18 (4) Legal tender, currency, medallions, or gold or
19 silver coinage issued by the State of Illinois, the
20 government of the United States of America, or the government
21 of any foreign country, and bullion.
22 (5) Graphic arts machinery and equipment, including
23 repair and replacement parts, both new and used, and
24 including that manufactured on special order or purchased for
25 lease, certified by the purchaser to be used primarily for
26 graphic arts production.
27 (6) Personal property sold by a teacher-sponsored
28 student organization affiliated with an elementary or
29 secondary school located in Illinois.
30 (7) Farm machinery and equipment, both new and used,
31 including that manufactured on special order, certified by
32 the purchaser to be used primarily for production agriculture
33 or State or federal agricultural programs, including
34 individual replacement parts for the machinery and equipment,
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1 including machinery and equipment purchased for lease, and
2 including implements of husbandry defined in Section 1-130 of
3 the Illinois Vehicle Code, farm machinery and agricultural
4 chemical and fertilizer spreaders, and nurse wagons required
5 to be registered under Section 3-809 of the Illinois Vehicle
6 Code, but excluding other motor vehicles required to be
7 registered under the Illinois Vehicle Code. Horticultural
8 polyhouses or hoop houses used for propagating, growing, or
9 overwintering plants shall be considered farm machinery and
10 equipment under this item (7). Agricultural chemical tender
11 tanks and dry boxes shall include units sold separately from
12 a motor vehicle required to be licensed and units sold
13 mounted on a motor vehicle required to be licensed if the
14 selling price of the tender is separately stated.
15 Farm machinery and equipment shall include precision
16 farming equipment that is installed or purchased to be
17 installed on farm machinery and equipment including, but not
18 limited to, tractors, harvesters, sprayers, planters,
19 seeders, or spreaders. Precision farming equipment includes,
20 but is not limited to, soil testing sensors, computers,
21 monitors, software, global positioning and mapping systems,
22 and other such equipment.
23 Farm machinery and equipment also includes computers,
24 sensors, software, and related equipment used primarily in
25 the computer-assisted operation of production agriculture
26 facilities, equipment, and activities such as, but not
27 limited to, the collection, monitoring, and correlation of
28 animal and crop data for the purpose of formulating animal
29 diets and agricultural chemicals. This item (7) is exempt
30 from the provisions of Section 3-55.
31 (8) Fuel and petroleum products sold to or used by an
32 air common carrier, certified by the carrier to be used for
33 consumption, shipment, or storage in the conduct of its
34 business as an air common carrier, for a flight destined for
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1 or returning from a location or locations outside the United
2 States without regard to previous or subsequent domestic
3 stopovers.
4 (9) Proceeds of mandatory service charges separately
5 stated on customers' bills for the purchase and consumption
6 of food and beverages, to the extent that the proceeds of the
7 service charge are in fact turned over as tips or as a
8 substitute for tips to the employees who participate directly
9 in preparing, serving, hosting or cleaning up the food or
10 beverage function with respect to which the service charge is
11 imposed.
12 (10) Oil field exploration, drilling, and production
13 equipment, including (i) rigs and parts of rigs, rotary rigs,
14 cable tool rigs, and workover rigs, (ii) pipe and tubular
15 goods, including casing and drill strings, (iii) pumps and
16 pump-jack units, (iv) storage tanks and flow lines, (v) any
17 individual replacement part for oil field exploration,
18 drilling, and production equipment, and (vi) machinery and
19 equipment purchased for lease; but excluding motor vehicles
20 required to be registered under the Illinois Vehicle Code.
21 (11) Photoprocessing machinery and equipment, including
22 repair and replacement parts, both new and used, including
23 that manufactured on special order, certified by the
24 purchaser to be used primarily for photoprocessing, and
25 including photoprocessing machinery and equipment purchased
26 for lease.
27 (12) Coal exploration, mining, offhighway hauling,
28 processing, maintenance, and reclamation equipment, including
29 replacement parts and equipment, and including equipment
30 purchased for lease, but excluding motor vehicles required to
31 be registered under the Illinois Vehicle Code.
32 (13) Food for human consumption that is to be consumed
33 off the premises where it is sold (other than alcoholic
34 beverages, soft drinks and food that has been prepared for
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1 immediate consumption) and prescription and non-prescription
2 medicines, drugs, medical appliances, and insulin, urine
3 testing materials, syringes, and needles used by diabetics,
4 for human use, when purchased for use by a person receiving
5 medical assistance under Article 5 of the Illinois Public Aid
6 Code who resides in a licensed long-term care facility, as
7 defined in the Nursing Home Care Act.
8 (14) Semen used for artificial insemination of livestock
9 for direct agricultural production.
10 (15) Horses, or interests in horses, registered with and
11 meeting the requirements of any of the Arabian Horse Club
12 Registry of America, Appaloosa Horse Club, American Quarter
13 Horse Association, United States Trotting Association, or
14 Jockey Club, as appropriate, used for purposes of breeding or
15 racing for prizes.
16 (16) Computers and communications equipment utilized for
17 any hospital purpose and equipment used in the diagnosis,
18 analysis, or treatment of hospital patients sold to a lessor
19 who leases the equipment, under a lease of one year or longer
20 executed or in effect at the time of the purchase, to a
21 hospital that has been issued an active tax exemption
22 identification number by the Department under Section 1g of
23 the Retailers' Occupation Tax Act.
24 (17) Personal property sold to a lessor who leases the
25 property, under a lease of one year or longer executed or in
26 effect at the time of the purchase, to a governmental body
27 that has been issued an active tax exemption identification
28 number by the Department under Section 1g of the Retailers'
29 Occupation Tax Act.
30 (18) Beginning with taxable years ending on or after
31 December 31, 1995 and ending with taxable years ending on or
32 before December 31, 2004, personal property that is donated
33 for disaster relief to be used in a State or federally
34 declared disaster area in Illinois or bordering Illinois by a
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1 manufacturer or retailer that is registered in this State to
2 a corporation, society, association, foundation, or
3 institution that has been issued a sales tax exemption
4 identification number by the Department that assists victims
5 of the disaster who reside within the declared disaster area.
6 (19) Beginning with taxable years ending on or after
7 December 31, 1995 and ending with taxable years ending on or
8 before December 31, 2004, personal property that is used in
9 the performance of infrastructure repairs in this State,
10 including but not limited to municipal roads and streets,
11 access roads, bridges, sidewalks, waste disposal systems,
12 water and sewer line extensions, water distribution and
13 purification facilities, storm water drainage and retention
14 facilities, and sewage treatment facilities, resulting from a
15 State or federally declared disaster in Illinois or bordering
16 Illinois when such repairs are initiated on facilities
17 located in the declared disaster area within 6 months after
18 the disaster.
19 (20) Beginning July 1, 1999, game or game birds sold at
20 a "game breeding and hunting preserve area" or an "exotic
21 game hunting area" as those terms are used in the Wildlife
22 Code or at a hunting enclosure approved through rules adopted
23 by the Department of Natural Resources. This paragraph is
24 exempt from the provisions of Section 3-55.
25 (21) (20) A motor vehicle, as that term is defined in
26 Section 1-146 of the Illinois Vehicle Code, that is donated
27 to a corporation, limited liability company, society,
28 association, foundation, or institution that is determined by
29 the Department to be organized and operated exclusively for
30 educational purposes. For purposes of this exemption, "a
31 corporation, limited liability company, society, association,
32 foundation, or institution organized and operated exclusively
33 for educational purposes" means all tax-supported public
34 schools, private schools that offer systematic instruction in
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1 useful branches of learning by methods common to public
2 schools and that compare favorably in their scope and
3 intensity with the course of study presented in tax-supported
4 schools, and vocational or technical schools or institutes
5 organized and operated exclusively to provide a course of
6 study of not less than 6 weeks duration and designed to
7 prepare individuals to follow a trade or to pursue a manual,
8 technical, mechanical, industrial, business, or commercial
9 occupation.
10 (22) (21) Beginning January 1, 2000, personal property,
11 including food, purchased through fundraising events for the
12 benefit of a public or private elementary or secondary
13 school, a group of those schools, or one or more school
14 districts if the events are sponsored by an entity recognized
15 by the school district that consists primarily of volunteers
16 and includes parents and teachers of the school children.
17 This paragraph does not apply to fundraising events (i) for
18 the benefit of private home instruction or (ii) for which the
19 fundraising entity purchases the personal property sold at
20 the events from another individual or entity that sold the
21 property for the purpose of resale by the fundraising entity
22 and that profits from the sale to the fundraising entity.
23 This paragraph is exempt from the provisions of Section 3-55.
24 (23) (20) Beginning January 1, 2000, new or used
25 automatic vending machines that prepare and serve hot food
26 and beverages, including coffee, soup, and other items, and
27 replacement parts for these machines. This paragraph is
28 exempt from the provisions of Section 3-55.
29 (24) Beginning January 1, 2002, tangible personal
30 property and its component parts purchased by a
31 telecommunications carrier if the property and parts are used
32 directly and primarily in transmitting, receiving, switching,
33 or recording any interactive, two-way electromagnetic
34 communications, including voice, image, data, and
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1 information, through the use of any medium, including, but
2 not limited to, poles, wires, cables, switching equipment,
3 computers, and record storage devices and media. This
4 paragraph is exempt from the provisions of Section 3-55.
5 (25) Beginning on the effective date of this amendatory
6 Act of the 92nd General Assembly and ending 10 years after
7 the effective date of this amendatory Act of the 92nd General
8 Assembly, production related tangible personal property and
9 machinery and equipment, including repair and replacement
10 parts, both new and used, and including those items
11 manufactured on special order or purchased for lease,
12 certified by the purchaser to be essential to and used in the
13 integrated process of the production of electricity by an
14 eligible facility owned, operated, or leased by an exempt
15 wholesale generator. "Eligible facility" and "exempt
16 wholesale generator" shall mean "eligible facility" and
17 "exempt wholesale generator" as defined in Section 32 of the
18 Public Utility Holding Company Act of 1935, 15 U.S.C. 79z-5a,
19 in effect as of the date of this amendatory Act of the 92nd
20 General Assembly. "Machinery" includes mechanical machines
21 and components of those machines that directly contribute to
22 or are directly used in or essential to the process of the
23 production of electricity. "Equipment" includes an
24 independent device or tool separate from machinery but
25 essential to an integrated electricity generation process;
26 including pipes of any kind used in the process of the
27 production of electricity; computers used primarily in
28 operating exempt machinery; any subunit or assembly
29 comprising a component of any machinery or auxiliary,
30 adjunct, or attachment parts of machinery, and any parts that
31 require periodic replacement in the course of normal
32 operation; but does not include hand tools. "Production
33 related tangible personal property" means all tangible
34 personal property directly used in or essential to the
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1 process of the production of electricity including, but not
2 limited to, tangible personal property used in activities
3 such as preproduction material handling, receiving, quality
4 control, inventory control, storage, staging, and piping or
5 lines necessary for the transportation of water, natural gas,
6 steam, and similar items to and from an eligible facility for
7 use in the process of the production of electricity. This
8 paragraph (25) shall apply also to machinery and equipment
9 used in the general maintenance or repair of exempt machinery
10 and equipment. This paragraph is solely for the purpose of
11 determining whether the production related tangible personal
12 property defined in this paragraph is exempt from the tax
13 imposed by this Act. Nothing in this paragraph, including,
14 but not limited to, any definitions set forth in this
15 paragraph, shall be construed, applied, or relied upon in any
16 way to ascertain whether the property exempt from the tax
17 imposed by this Act is real property or personal property for
18 the purpose of determining whether the property is subject to
19 ad valorem taxes on real property or to any other taxes. This
20 exemption does not apply to any additional tax imposed by the
21 Board of Directors of the Regional Transportation Authority
22 under Section 4.03 of the Regional Transportation Authority
23 Act.
24 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
25 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
26 7-20-99; 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637,
27 eff. 8-20-99; 91-644, eff. 8-20-99; revised 9-29-99.)
28 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
29 Sec. 3-10. Rate of tax. Unless otherwise provided in
30 this Section, the tax imposed by this Act is at the rate of
31 6.25% of the "selling price", as defined in Section 2 of the
32 Service Use Tax Act, of the tangible personal property. For
33 the purpose of computing this tax, in no event shall the
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1 "selling price" be less than the cost price to the serviceman
2 of the tangible personal property transferred. The selling
3 price of each item of tangible personal property transferred
4 as an incident of a sale of service may be shown as a
5 distinct and separate item on the serviceman's billing to the
6 service customer. If the selling price is not so shown, the
7 selling price of the tangible personal property is deemed to
8 be 50% of the serviceman's entire billing to the service
9 customer. When, however, a serviceman contracts to design,
10 develop, and produce special order machinery or equipment,
11 the tax imposed by this Act shall be based on the
12 serviceman's cost price of the tangible personal property
13 transferred incident to the completion of the contract.
14 Beginning on July 1, 2000 and through December 31, 2000,
15 and, beginning again on July 1, 2001, with respect to motor
16 fuel, as defined in Section 1.1 of the Motor Fuel Tax Law,
17 and gasohol, as defined in Section 3-40 of the Use Tax Act,
18 the tax is imposed at the rate of 1.25%. The changes to this
19 Section made by this amendatory Act of the 92nd General
20 Assembly are exempt from the provisions of Section 3-55.
21 With respect to gasohol, as defined in the Use Tax Act,
22 the tax imposed by this Act shall apply to 70% of the cost
23 price of property transferred as an incident to the sale of
24 service on or after January 1, 1990, and before July 1, 2003,
25 and to 100% of the cost price thereafter.
26 At the election of any registered serviceman made for
27 each fiscal year, sales of service in which the aggregate
28 annual cost price of tangible personal property transferred
29 as an incident to the sales of service is less than 35%, or
30 75% in the case of servicemen transferring prescription drugs
31 or servicemen engaged in graphic arts production, of the
32 aggregate annual total gross receipts from all sales of
33 service, the tax imposed by this Act shall be based on the
34 serviceman's cost price of the tangible personal property
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1 transferred incident to the sale of those services.
2 The tax shall be imposed at the rate of 1% on food
3 prepared for immediate consumption and transferred incident
4 to a sale of service subject to this Act or the Service
5 Occupation Tax Act by an entity licensed under the Hospital
6 Licensing Act, the Nursing Home Care Act, or the Child Care
7 Act of 1969. The tax shall also be imposed at the rate of 1%
8 on food for human consumption that is to be consumed off the
9 premises where it is sold (other than alcoholic beverages,
10 soft drinks, and food that has been prepared for immediate
11 consumption and is not otherwise included in this paragraph)
12 and prescription and nonprescription medicines, drugs,
13 medical appliances, modifications to a motor vehicle for the
14 purpose of rendering it usable by a disabled person, and
15 insulin, urine testing materials, syringes, and needles used
16 by diabetics, for human use. For the purposes of this
17 Section, the term "soft drinks" means any complete, finished,
18 ready-to-use, non-alcoholic drink, whether carbonated or not,
19 including but not limited to soda water, cola, fruit juice,
20 vegetable juice, carbonated water, and all other preparations
21 commonly known as soft drinks of whatever kind or description
22 that are contained in any closed or sealed can, carton, or
23 container, regardless of size. "Soft drinks" does not
24 include coffee, tea, non-carbonated water, infant formula,
25 milk or milk products as defined in the Grade A Pasteurized
26 Milk and Milk Products Act, or drinks containing 50% or more
27 natural fruit or vegetable juice.
28 Notwithstanding any other provisions of this Act, "food
29 for human consumption that is to be consumed off the premises
30 where it is sold" includes all food sold through a vending
31 machine, except soft drinks and food products that are
32 dispensed hot from a vending machine, regardless of the
33 location of the vending machine.
34 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
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1 91-51, 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00.)
2 (35 ILCS 115/3-52 new)
3 Sec. 3-52. Gasohol retailer credit. For sales of
4 gasohol, as defined in Section 3-40 of the Use Tax Act, made
5 on or after December 1, 2001, a retailer is entitled to a
6 credit against the retailer's tax liability under this Act of
7 2 cents per gallon of gasohol sold.
8 Section 99-40. The Retailers' Occupation Tax Act is
9 amended by changing Sections 1c, 2-5, 2-10, 2d, and 3 and by
10 adding Sections 2-67 and 2-75 as follows:
11 (35 ILCS 120/1c) (from Ch. 120, par. 440c)
12 Sec. 1c. A person who is engaged in the business of
13 leasing or renting motor vehicles to others and who, in
14 connection with such business sells any used motor vehicle to
15 a purchaser for his use and not for the purpose of resale, is
16 a retailer engaged in the business of selling tangible
17 personal property at retail under this Act to the extent of
18 the value of the vehicle sold. For the purpose of this
19 Section, "motor vehicle" means any motor vehicle of the first
20 division, a motor vehicle of the second division which is a
21 self-contained motor vehicle designed or permanently
22 converted to provide living quarters for recreational,
23 camping or travel use, with direct walk through access to the
24 living quarters from the driver's seat, or a motor vehicle of
25 a second division which is of the van configuration designed
26 for the transportation of not less than 7 nor more than 16
27 passengers, as defined in Section 1-146 of the Illinois
28 Vehicle Code. For the purpose of this Section "motor vehicle"
29 has the meaning prescribed in Section 1-157 of The Illinois
30 Vehicle Code, as now or hereafter amended. (Nothing provided
31 herein shall affect liability incurred under this Act because
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1 of the sale at retail of such motor vehicles to a lessor.)
2 (Source: P.A. 80-598.)
3 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
4 Sec. 2-5. Exemptions. Gross receipts from proceeds from
5 the sale of the following tangible personal property are
6 exempt from the tax imposed by this Act:
7 (1) Farm chemicals.
8 (2) Farm machinery and equipment, both new and used,
9 including that manufactured on special order, certified by
10 the purchaser to be used primarily for production agriculture
11 or State or federal agricultural programs, including
12 individual replacement parts for the machinery and equipment,
13 including machinery and equipment purchased for lease, and
14 including implements of husbandry defined in Section 1-130 of
15 the Illinois Vehicle Code, farm machinery and agricultural
16 chemical and fertilizer spreaders, and nurse wagons required
17 to be registered under Section 3-809 of the Illinois Vehicle
18 Code, but excluding other motor vehicles required to be
19 registered under the Illinois Vehicle Code. Horticultural
20 polyhouses or hoop houses used for propagating, growing, or
21 overwintering plants shall be considered farm machinery and
22 equipment under this item (2). Agricultural chemical tender
23 tanks and dry boxes shall include units sold separately from
24 a motor vehicle required to be licensed and units sold
25 mounted on a motor vehicle required to be licensed, if the
26 selling price of the tender is separately stated.
27 Farm machinery and equipment shall include precision
28 farming equipment that is installed or purchased to be
29 installed on farm machinery and equipment including, but not
30 limited to, tractors, harvesters, sprayers, planters,
31 seeders, or spreaders. Precision farming equipment includes,
32 but is not limited to, soil testing sensors, computers,
33 monitors, software, global positioning and mapping systems,
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1 and other such equipment.
2 Farm machinery and equipment also includes computers,
3 sensors, software, and related equipment used primarily in
4 the computer-assisted operation of production agriculture
5 facilities, equipment, and activities such as, but not
6 limited to, the collection, monitoring, and correlation of
7 animal and crop data for the purpose of formulating animal
8 diets and agricultural chemicals. This item (7) is exempt
9 from the provisions of Section 2-70.
10 (3) Distillation machinery and equipment, sold as a unit
11 or kit, assembled or installed by the retailer, certified by
12 the user to be used only for the production of ethyl alcohol
13 that will be used for consumption as motor fuel or as a
14 component of motor fuel for the personal use of the user, and
15 not subject to sale or resale.
16 (4) Graphic arts machinery and equipment, including
17 repair and replacement parts, both new and used, and
18 including that manufactured on special order or purchased for
19 lease, certified by the purchaser to be used primarily for
20 graphic arts production.
21 (5) A motor vehicle of the first division, a motor
22 vehicle of the second division that is a self-contained motor
23 vehicle designed or permanently converted to provide living
24 quarters for recreational, camping, or travel use, with
25 direct walk through access to the living quarters from the
26 driver's seat, or a motor vehicle of the second division that
27 is of the van configuration designed for the transportation
28 of not less than 7 nor more than 16 passengers, as defined in
29 Section 1-146 of the Illinois Vehicle Code, that is used for
30 automobile renting, as defined in the Automobile Renting
31 Occupation and Use Tax Act.
32 (6) Personal property sold by a teacher-sponsored
33 student organization affiliated with an elementary or
34 secondary school located in Illinois.
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1 (7) Proceeds of that portion of the selling price of a
2 passenger car the sale of which is subject to the Replacement
3 Vehicle Tax.
4 (8) Personal property sold to an Illinois county fair
5 association for use in conducting, operating, or promoting
6 the county fair.
7 (9) Personal property sold to a not-for-profit arts or
8 cultural organization that establishes, by proof required by
9 the Department by rule, that it has received an exemption
10 under Section 501(c)(3) of the Internal Revenue Code and that
11 is organized and operated for the presentation or support of
12 arts or cultural programming, activities, or services. These
13 organizations include, but are not limited to, music and
14 dramatic arts organizations such as symphony orchestras and
15 theatrical groups, arts and cultural service organizations,
16 local arts councils, visual arts organizations, and media
17 arts organizations.
18 (10) Personal property sold by a corporation, society,
19 association, foundation, institution, or organization, other
20 than a limited liability company, that is organized and
21 operated as a not-for-profit service enterprise for the
22 benefit of persons 65 years of age or older if the personal
23 property was not purchased by the enterprise for the purpose
24 of resale by the enterprise.
25 (11) Personal property sold to a governmental body, to a
26 corporation, society, association, foundation, or institution
27 organized and operated exclusively for charitable, religious,
28 or educational purposes, or to a not-for-profit corporation,
29 society, association, foundation, institution, or
30 organization that has no compensated officers or employees
31 and that is organized and operated primarily for the
32 recreation of persons 55 years of age or older. A limited
33 liability company may qualify for the exemption under this
34 paragraph only if the limited liability company is organized
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1 and operated exclusively for educational purposes. On and
2 after July 1, 1987, however, no entity otherwise eligible for
3 this exemption shall make tax-free purchases unless it has an
4 active identification number issued by the Department.
5 (12) Personal property sold to interstate carriers for
6 hire for use as rolling stock moving in interstate commerce
7 or to lessors under leases of one year or longer executed or
8 in effect at the time of purchase by interstate carriers for
9 hire for use as rolling stock moving in interstate commerce
10 and equipment operated by a telecommunications provider,
11 licensed as a common carrier by the Federal Communications
12 Commission, which is permanently installed in or affixed to
13 aircraft moving in interstate commerce.
14 (13) Proceeds from sales to owners, lessors, or shippers
15 of tangible personal property that is utilized by interstate
16 carriers for hire for use as rolling stock moving in
17 interstate commerce and equipment operated by a
18 telecommunications provider, licensed as a common carrier by
19 the Federal Communications Commission, which is permanently
20 installed in or affixed to aircraft moving in interstate
21 commerce.
22 (14) Machinery and equipment that will be used by the
23 purchaser, or a lessee of the purchaser, primarily in the
24 process of manufacturing or assembling tangible personal
25 property for wholesale or retail sale or lease, whether the
26 sale or lease is made directly by the manufacturer or by some
27 other person, whether the materials used in the process are
28 owned by the manufacturer or some other person, or whether
29 the sale or lease is made apart from or as an incident to the
30 seller's engaging in the service occupation of producing
31 machines, tools, dies, jigs, patterns, gauges, or other
32 similar items of no commercial value on special order for a
33 particular purchaser.
34 (15) Proceeds of mandatory service charges separately
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1 stated on customers' bills for purchase and consumption of
2 food and beverages, to the extent that the proceeds of the
3 service charge are in fact turned over as tips or as a
4 substitute for tips to the employees who participate directly
5 in preparing, serving, hosting or cleaning up the food or
6 beverage function with respect to which the service charge is
7 imposed.
8 (16) Petroleum products sold to a purchaser if the
9 seller is prohibited by federal law from charging tax to the
10 purchaser.
11 (17) Tangible personal property sold to a common carrier
12 by rail or motor that receives the physical possession of the
13 property in Illinois and that transports the property, or
14 shares with another common carrier in the transportation of
15 the property, out of Illinois on a standard uniform bill of
16 lading showing the seller of the property as the shipper or
17 consignor of the property to a destination outside Illinois,
18 for use outside Illinois.
19 (18) Legal tender, currency, medallions, or gold or
20 silver coinage issued by the State of Illinois, the
21 government of the United States of America, or the government
22 of any foreign country, and bullion.
23 (19) Oil field exploration, drilling, and production
24 equipment, including (i) rigs and parts of rigs, rotary rigs,
25 cable tool rigs, and workover rigs, (ii) pipe and tubular
26 goods, including casing and drill strings, (iii) pumps and
27 pump-jack units, (iv) storage tanks and flow lines, (v) any
28 individual replacement part for oil field exploration,
29 drilling, and production equipment, and (vi) machinery and
30 equipment purchased for lease; but excluding motor vehicles
31 required to be registered under the Illinois Vehicle Code.
32 (20) Photoprocessing machinery and equipment, including
33 repair and replacement parts, both new and used, including
34 that manufactured on special order, certified by the
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1 purchaser to be used primarily for photoprocessing, and
2 including photoprocessing machinery and equipment purchased
3 for lease.
4 (21) Coal exploration, mining, offhighway hauling,
5 processing, maintenance, and reclamation equipment, including
6 replacement parts and equipment, and including equipment
7 purchased for lease, but excluding motor vehicles required to
8 be registered under the Illinois Vehicle Code.
9 (22) Fuel and petroleum products sold to or used by an
10 air carrier, certified by the carrier to be used for
11 consumption, shipment, or storage in the conduct of its
12 business as an air common carrier, for a flight destined for
13 or returning from a location or locations outside the United
14 States without regard to previous or subsequent domestic
15 stopovers.
16 (23) A transaction in which the purchase order is
17 received by a florist who is located outside Illinois, but
18 who has a florist located in Illinois deliver the property to
19 the purchaser or the purchaser's donee in Illinois.
20 (24) Fuel consumed or used in the operation of ships,
21 barges, or vessels that are used primarily in or for the
22 transportation of property or the conveyance of persons for
23 hire on rivers bordering on this State if the fuel is
24 delivered by the seller to the purchaser's barge, ship, or
25 vessel while it is afloat upon that bordering river.
26 (25) A motor vehicle sold in this State to a nonresident
27 even though the motor vehicle is delivered to the nonresident
28 in this State, if the motor vehicle is not to be titled in
29 this State, and if a driveaway decal permit is issued to the
30 motor vehicle as provided in Section 3-603 of the Illinois
31 Vehicle Code or if the nonresident purchaser has vehicle
32 registration plates to transfer to the motor vehicle upon
33 returning to his or her home state. The issuance of the
34 driveaway decal permit or having the out-of-state
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1 registration plates to be transferred is prima facie evidence
2 that the motor vehicle will not be titled in this State.
3 (26) Semen used for artificial insemination of livestock
4 for direct agricultural production.
5 (27) Horses, or interests in horses, registered with and
6 meeting the requirements of any of the Arabian Horse Club
7 Registry of America, Appaloosa Horse Club, American Quarter
8 Horse Association, United States Trotting Association, or
9 Jockey Club, as appropriate, used for purposes of breeding or
10 racing for prizes.
11 (28) Computers and communications equipment utilized for
12 any hospital purpose and equipment used in the diagnosis,
13 analysis, or treatment of hospital patients sold to a lessor
14 who leases the equipment, under a lease of one year or longer
15 executed or in effect at the time of the purchase, to a
16 hospital that has been issued an active tax exemption
17 identification number by the Department under Section 1g of
18 this Act.
19 (29) Personal property sold to a lessor who leases the
20 property, under a lease of one year or longer executed or in
21 effect at the time of the purchase, to a governmental body
22 that has been issued an active tax exemption identification
23 number by the Department under Section 1g of this Act.
24 (30) Beginning with taxable years ending on or after
25 December 31, 1995 and ending with taxable years ending on or
26 before December 31, 2004, personal property that is donated
27 for disaster relief to be used in a State or federally
28 declared disaster area in Illinois or bordering Illinois by a
29 manufacturer or retailer that is registered in this State to
30 a corporation, society, association, foundation, or
31 institution that has been issued a sales tax exemption
32 identification number by the Department that assists victims
33 of the disaster who reside within the declared disaster area.
34 (31) Beginning with taxable years ending on or after
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1 December 31, 1995 and ending with taxable years ending on or
2 before December 31, 2004, personal property that is used in
3 the performance of infrastructure repairs in this State,
4 including but not limited to municipal roads and streets,
5 access roads, bridges, sidewalks, waste disposal systems,
6 water and sewer line extensions, water distribution and
7 purification facilities, storm water drainage and retention
8 facilities, and sewage treatment facilities, resulting from a
9 State or federally declared disaster in Illinois or bordering
10 Illinois when such repairs are initiated on facilities
11 located in the declared disaster area within 6 months after
12 the disaster.
13 (32) Beginning July 1, 1999, game or game birds sold at
14 a "game breeding and hunting preserve area" or an "exotic
15 game hunting area" as those terms are used in the Wildlife
16 Code or at a hunting enclosure approved through rules adopted
17 by the Department of Natural Resources. This paragraph is
18 exempt from the provisions of Section 2-70.
19 (33) (32) A motor vehicle, as that term is defined in
20 Section 1-146 of the Illinois Vehicle Code, that is donated
21 to a corporation, limited liability company, society,
22 association, foundation, or institution that is determined by
23 the Department to be organized and operated exclusively for
24 educational purposes. For purposes of this exemption, "a
25 corporation, limited liability company, society, association,
26 foundation, or institution organized and operated exclusively
27 for educational purposes" means all tax-supported public
28 schools, private schools that offer systematic instruction in
29 useful branches of learning by methods common to public
30 schools and that compare favorably in their scope and
31 intensity with the course of study presented in tax-supported
32 schools, and vocational or technical schools or institutes
33 organized and operated exclusively to provide a course of
34 study of not less than 6 weeks duration and designed to
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1 prepare individuals to follow a trade or to pursue a manual,
2 technical, mechanical, industrial, business, or commercial
3 occupation.
4 (34) (33) Beginning January 1, 2000, personal property,
5 including food, purchased through fundraising events for the
6 benefit of a public or private elementary or secondary
7 school, a group of those schools, or one or more school
8 districts if the events are sponsored by an entity recognized
9 by the school district that consists primarily of volunteers
10 and includes parents and teachers of the school children.
11 This paragraph does not apply to fundraising events (i) for
12 the benefit of private home instruction or (ii) for which the
13 fundraising entity purchases the personal property sold at
14 the events from another individual or entity that sold the
15 property for the purpose of resale by the fundraising entity
16 and that profits from the sale to the fundraising entity.
17 This paragraph is exempt from the provisions of Section 2-70.
18 (35) (32) Beginning January 1, 2000, new or used
19 automatic vending machines that prepare and serve hot food
20 and beverages, including coffee, soup, and other items, and
21 replacement parts for these machines. This paragraph is
22 exempt from the provisions of Section 2-70.
23 (36) Beginning January 1, 2002, tangible personal
24 property and its component parts purchased by a
25 telecommunications carrier if the property and parts are used
26 directly and primarily in transmitting, receiving, switching,
27 or recording any interactive, two-way electromagnetic
28 communications, including voice, image, data, and
29 information, through the use of any medium, including, but
30 not limited to, poles, wires, cables, switching equipment,
31 computers, and record storage devices and media. This
32 paragraph is exempt from the provisions of Section 2-70.
33 (37) Beginning on the effective date of this amendatory
34 Act of the 92nd General Assembly and ending 10 years after
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1 the effective date of this amendatory Act of the 92nd General
2 Assembly, production related tangible personal property and
3 machinery and equipment, including repair and replacement
4 parts, both new and used, and including those items
5 manufactured on special order or purchased for lease,
6 certified by the purchaser to be essential to and used in the
7 integrated process of the production of electricity by an
8 eligible facility owned, operated, or leased by an exempt
9 wholesale generator. "Eligible facility" and "exempt
10 wholesale generator" shall mean "eligible facility" and
11 "exempt wholesale generator" as defined in Section 32 of the
12 Public Utility Holding Company Act of 1935, 15 U.S.C. 79z-5a,
13 in effect as of the date of this amendatory Act of the 92nd
14 General Assembly. "Machinery" includes mechanical machines
15 and components of those machines that directly contribute to
16 or are directly used in or essential to the process of the
17 production of electricity. "Equipment" includes an
18 independent device or tool separate from machinery but
19 essential to an integrated electricity generation process;
20 including pipes of any kind used in the process of the
21 production of electricity; computers used primarily in
22 operating exempt machinery; any subunit or assembly
23 comprising a component of any machinery or auxiliary,
24 adjunct, or attachment parts of machinery, and any parts that
25 require periodic replacement in the course of normal
26 operation; but does not include hand tools. "Production
27 related tangible personal property" means all tangible
28 personal property directly used in or essential to the
29 process of the production of electricity including, but not
30 limited to, tangible personal property used in activities
31 such as preproduction material handling, receiving, quality
32 control, inventory control, storage, staging, and piping or
33 lines necessary for the transportation of water, natural gas,
34 steam, and similar items to and from an eligible facility for
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1 use in the process of the production of electricity. This
2 paragraph (37) shall apply also to machinery and equipment
3 used in the general maintenance or repair of exempt machinery
4 and equipment. This paragraph is solely for the purpose of
5 determining whether the production related tangible personal
6 property defined in this paragraph is exempt from the tax
7 imposed by this Act. Nothing in this paragraph, including,
8 but not limited to, any definitions set forth in this
9 paragraph, shall be construed, applied, or relied upon in any
10 way to ascertain whether the property exempt from the tax
11 imposed by this Act is real property or personal property for
12 the purpose of determining whether the property is subject to
13 ad valorem taxes on real property or to any other taxes. This
14 exemption does not apply to any additional tax imposed by the
15 Board of Directors of the Regional Transportation Authority
16 under Section 4.03 of the Regional Transportation Authority
17 Act.
18 (Source: P.A. 90-14, eff. 7-1-97; 90-519, eff. 6-1-98;
19 90-552, eff. 12-12-97; 90-605, eff. 6-30-98; 91-51, eff.
20 6-30-99; 91-200, eff. 7-20-99; 91-439, eff. 8-6-99; 91-533,
21 eff. 8-13-99; 91-637, eff. 8-20-99; 91-644, eff. 8-20-99;
22 revised 9-28-99.)
23 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
24 Sec. 2-10. Rate of tax. Unless otherwise provided in
25 this Section, the tax imposed by this Act is at the rate of
26 6.25% of gross receipts from sales of tangible personal
27 property made in the course of business.
28 Beginning on July 1, 2000 and through December 31, 2000,
29 and, beginning again on July 1, 2001, with respect to motor
30 fuel, as defined in Section 1.1 of the Motor Fuel Tax Law,
31 and gasohol, as defined in Section 3-40 of the Use Tax Act,
32 the tax is imposed at the rate of 1.25%. The changes to this
33 Section made by this amendatory Act of the 92nd General
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1 Assembly are exempt from the provisions of Section 2-70.
2 Within 14 days after the effective date of this
3 amendatory Act of the 91st General Assembly, each retailer of
4 motor fuel and gasohol shall cause the following notice to be
5 posted in a prominently visible place on each retail
6 dispensing device that is used to dispense motor fuel or
7 gasohol in the State of Illinois: "As of July 1, 2000, the
8 State of Illinois has eliminated the State's share of sales
9 tax on motor fuel and gasohol through December 31, 2000. The
10 price on this pump should reflect the elimination of the
11 tax." The notice shall be printed in bold print on a sign
12 that is no smaller than 4 inches by 8 inches. The sign shall
13 be clearly visible to customers. Any retailer who fails to
14 post or maintain a required sign through December 31, 2000 is
15 guilty of a petty offense for which the fine shall be $500
16 per day per each retail premises where a violation occurs.
17 With respect to gasohol, as defined in the Use Tax Act,
18 the tax imposed by this Act applies to 70% of the proceeds of
19 sales made on or after January 1, 1990, and before July 1,
20 2003, and to 100% of the proceeds of sales made thereafter.
21 With respect to food for human consumption that is to be
22 consumed off the premises where it is sold (other than
23 alcoholic beverages, soft drinks, and food that has been
24 prepared for immediate consumption) and prescription and
25 nonprescription medicines, drugs, medical appliances,
26 modifications to a motor vehicle for the purpose of rendering
27 it usable by a disabled person, and insulin, urine testing
28 materials, syringes, and needles used by diabetics, for human
29 use, the tax is imposed at the rate of 1%. For the purposes
30 of this Section, the term "soft drinks" means any complete,
31 finished, ready-to-use, non-alcoholic drink, whether
32 carbonated or not, including but not limited to soda water,
33 cola, fruit juice, vegetable juice, carbonated water, and all
34 other preparations commonly known as soft drinks of whatever
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1 kind or description that are contained in any closed or
2 sealed bottle, can, carton, or container, regardless of size.
3 "Soft drinks" does not include coffee, tea, non-carbonated
4 water, infant formula, milk or milk products as defined in
5 the Grade A Pasteurized Milk and Milk Products Act, or drinks
6 containing 50% or more natural fruit or vegetable juice.
7 Notwithstanding any other provisions of this Act, "food
8 for human consumption that is to be consumed off the premises
9 where it is sold" includes all food sold through a vending
10 machine, except soft drinks and food products that are
11 dispensed hot from a vending machine, regardless of the
12 location of the vending machine.
13 With respect to any motor vehicle (as the term "motor
14 vehicle" is defined in Section 1a of this Act) that is
15 purchased by a lessor for purposes of leasing under a lease
16 subject to the Automobile Leasing Occupation and Use Tax Act,
17 the tax is imposed at the rate of 1.25%.
18 With respect to any motor vehicle (as the term "motor
19 vehicle" is defined in Section 1a of this Act) that has been
20 leased by a lessor to a lessee under a lease that is subject
21 to the Automobile Leasing Occupation and Use Tax Act, and is
22 subsequently purchased by the lessee of such vehicle, the tax
23 is imposed at the rate of 5%.
24 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
25 91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)
26 (35 ILCS 120/2-67 new)
27 Sec. 2-67. Gasohol retailer credit. For sales of
28 gasohol, as defined in Section 3-40 of the Use Tax Act, made
29 on or after December 1, 2001, a retailer is entitled to a
30 credit against the retailer's tax liability under this Act of
31 2 cents per gallon of gasohol sold.
32 (35 ILCS 120/2-75 new)
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1 Sec. 2-75. Tax holiday for clothing and footwear.
2 (a) Notwithstanding any other provision to the contrary,
3 no tax shall be imposed under this Act upon persons engaged
4 in the business of selling at retail an individual item of
5 clothing or footwear designed to be worn about the human body
6 if that item of clothing or that footwear (i) is purchased
7 for a selling price of $200 or less and (ii) is purchased
8 from 12:01 a.m. on the first Friday in August through
9 midnight of the Sunday that follows 9 days later. Any
10 discount, coupon, or other credit offered either by the
11 retailer or by a vendor of the retailer to reduce the final
12 price to the customer shall be taken into account in
13 determining the selling price of the item for purposes of
14 this holiday.
15 (b) A unit of local government may, by ordinance adopted
16 by that unit of local government, opt out of the tax holiday
17 imposed by this Section and continue to collect and remit the
18 tax imposed under this Act during the tax holiday period.
19 (c) Articles that are normally sold as a unit must
20 continue to be sold in that manner; they cannot be priced
21 separately and sold as individual items in order to be
22 subject to the holiday. For example, if a pair of shoes
23 sells for $250, the pair cannot be split in order to sell
24 each shoe for $125 to qualify for the holiday. If a suit is
25 normally priced at $250 on a single price tag, the suit
26 cannot be split into separate articles so that any of the
27 components may be sold for less than $200 in order to qualify
28 for the holiday. However, components that are normally
29 priced as separate articles may continue to be sold as
30 separate articles and qualify for the holiday if the price of
31 an article is less than $200.
32 (35 ILCS 120/2d) (from Ch. 120, par. 441d)
33 Sec. 2d. Tax prepayment by motor fuel retailer. Any
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1 person engaged in the business of selling motor fuel at
2 retail, as defined in the Motor Fuel Tax Law, and who is not
3 a licensed distributor or supplier, as defined in the Motor
4 Fuel Tax Law, shall prepay to his or her distributor,
5 supplier, or other reseller of motor fuel a portion of the
6 tax imposed by this Act if the distributor, supplier, or
7 other reseller of motor fuel is registered under Section 2a
8 or Section 2c of this Act. The prepayment requirement
9 provided for in this Section does not apply to liquid propane
10 gas.
11 Beginning on July 1, 2000 and through December 31, 2000,
12 the Retailers' Occupation Tax paid to the distributor,
13 supplier, or other reseller shall be an amount equal to $0.01
14 per gallon of the motor fuel, except gasohol as defined in
15 Section 2-10 of this Act which shall be an amount equal to
16 $0.01 per gallon, purchased from the distributor, supplier,
17 or other reseller.
18 Before July 1, 2000 and then beginning on January 1, 2001
19 and through June 30, 2001 thereafter, the Retailers'
20 Occupation Tax paid to the distributor, supplier, or other
21 reseller shall be an amount equal to $0.04 per gallon of the
22 motor fuel, except gasohol as defined in Section 2-10 of this
23 Act which shall be an amount equal to $0.03 per gallon,
24 purchased from the distributor, supplier, or other reseller.
25 Beginning on July 1, 2001, the Retailers' Occupation Tax
26 paid to the distributor, supplier, or other reseller shall be
27 an amount equal to $0.01 per gallon of the motor fuel
28 purchased form the distributor, supplier, or other reseller.
29 Any person engaged in the business of selling motor fuel
30 at retail shall be entitled to a credit against tax due under
31 this Act in an amount equal to the tax paid to the
32 distributor, supplier, or other reseller.
33 Every distributor, supplier, or other reseller registered
34 as provided in Section 2a or Section 2c of this Act shall
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1 remit the prepaid tax on all motor fuel that is due from any
2 person engaged in the business of selling at retail motor
3 fuel with the returns filed under Section 2f or Section 3 of
4 this Act, but the vendors discount provided in Section 3
5 shall not apply to the amount of prepaid tax that is
6 remitted. Any distributor or supplier who fails to properly
7 collect and remit the tax shall be liable for the tax. For
8 purposes of this Section, the prepaid tax is due on invoiced
9 gallons sold during a month by the 20th day of the following
10 month.
11 (Source: P.A. 91-872, eff. 7-1-00.)
12 (35 ILCS 120/3) (from Ch. 120, par. 442)
13 Sec. 3. Except as provided in this Section, on or before
14 the twentieth day of each calendar month, every person
15 engaged in the business of selling tangible personal property
16 at retail in this State during the preceding calendar month
17 shall file a return with the Department, stating:
18 1. The name of the seller;
19 2. His residence address and the address of his
20 principal place of business and the address of the
21 principal place of business (if that is a different
22 address) from which he engages in the business of selling
23 tangible personal property at retail in this State;
24 3. Total amount of receipts received by him during
25 the preceding calendar month or quarter, as the case may
26 be, from sales of tangible personal property, and from
27 services furnished, by him during such preceding calendar
28 month or quarter;
29 4. Total amount received by him during the
30 preceding calendar month or quarter on charge and time
31 sales of tangible personal property, and from services
32 furnished, by him prior to the month or quarter for which
33 the return is filed;
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1 5. Deductions allowed by law;
2 6. Gross receipts which were received by him during
3 the preceding calendar month or quarter and upon the
4 basis of which the tax is imposed;
5 7. The amount of credit provided in Section 2d of
6 this Act;
7 8. The amount of tax due;
8 9. The signature of the taxpayer; and
9 10. Such other reasonable information as the
10 Department may require.
11 If a taxpayer fails to sign a return within 30 days after
12 the proper notice and demand for signature by the Department,
13 the return shall be considered valid and any amount shown to
14 be due on the return shall be deemed assessed.
15 Each return shall be accompanied by the statement of
16 prepaid tax issued pursuant to Section 2e for which credit is
17 claimed.
18 A retailer may accept a Manufacturer's Purchase Credit
19 certification from a purchaser in satisfaction of Use Tax as
20 provided in Section 3-85 of the Use Tax Act if the purchaser
21 provides the appropriate documentation as required by Section
22 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
23 certification, accepted by a retailer as provided in Section
24 3-85 of the Use Tax Act, may be used by that retailer to
25 satisfy Retailers' Occupation Tax liability in the amount
26 claimed in the certification, not to exceed 6.25% of the
27 receipts subject to tax from a qualifying purchase.
28 The Department may require returns to be filed on a
29 quarterly basis. If so required, a return for each calendar
30 quarter shall be filed on or before the twentieth day of the
31 calendar month following the end of such calendar quarter.
32 The taxpayer shall also file a return with the Department for
33 each of the first two months of each calendar quarter, on or
34 before the twentieth day of the following calendar month,
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1 stating:
2 1. The name of the seller;
3 2. The address of the principal place of business
4 from which he engages in the business of selling tangible
5 personal property at retail in this State;
6 3. The total amount of taxable receipts received by
7 him during the preceding calendar month from sales of
8 tangible personal property by him during such preceding
9 calendar month, including receipts from charge and time
10 sales, but less all deductions allowed by law;
11 4. The amount of credit provided in Section 2d of
12 this Act;
13 5. The amount of tax due; and
14 6. Such other reasonable information as the
15 Department may require.
16 If a total amount of less than $1 is payable, refundable
17 or creditable, such amount shall be disregarded if it is less
18 than 50 cents and shall be increased to $1 if it is 50 cents
19 or more.
20 Beginning October 1, 1993, a taxpayer who has an average
21 monthly tax liability of $150,000 or more shall make all
22 payments required by rules of the Department by electronic
23 funds transfer. Beginning October 1, 1994, a taxpayer who
24 has an average monthly tax liability of $100,000 or more
25 shall make all payments required by rules of the Department
26 by electronic funds transfer. Beginning October 1, 1995, a
27 taxpayer who has an average monthly tax liability of $50,000
28 or more shall make all payments required by rules of the
29 Department by electronic funds transfer. Beginning October
30 1, 2000, a taxpayer who has an annual tax liability of
31 $200,000 or more shall make all payments required by rules of
32 the Department by electronic funds transfer. The term
33 "annual tax liability" shall be the sum of the taxpayer's
34 liabilities under this Act, and under all other State and
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1 local occupation and use tax laws administered by the
2 Department, for the immediately preceding calendar year. The
3 term "average monthly tax liability" shall be the sum of the
4 taxpayer's liabilities under this Act, and under all other
5 State and local occupation and use tax laws administered by
6 the Department, for the immediately preceding calendar year
7 divided by 12.
8 Before August 1 of each year beginning in 1993, the
9 Department shall notify all taxpayers required to make
10 payments by electronic funds transfer. All taxpayers
11 required to make payments by electronic funds transfer shall
12 make those payments for a minimum of one year beginning on
13 October 1.
14 Any taxpayer not required to make payments by electronic
15 funds transfer may make payments by electronic funds transfer
16 with the permission of the Department.
17 All taxpayers required to make payment by electronic
18 funds transfer and any taxpayers authorized to voluntarily
19 make payments by electronic funds transfer shall make those
20 payments in the manner authorized by the Department.
21 The Department shall adopt such rules as are necessary to
22 effectuate a program of electronic funds transfer and the
23 requirements of this Section.
24 Any amount which is required to be shown or reported on
25 any return or other document under this Act shall, if such
26 amount is not a whole-dollar amount, be increased to the
27 nearest whole-dollar amount in any case where the fractional
28 part of a dollar is 50 cents or more, and decreased to the
29 nearest whole-dollar amount where the fractional part of a
30 dollar is less than 50 cents.
31 If the retailer is otherwise required to file a monthly
32 return and if the retailer's average monthly tax liability to
33 the Department does not exceed $200, the Department may
34 authorize his returns to be filed on a quarter annual basis,
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1 with the return for January, February and March of a given
2 year being due by April 20 of such year; with the return for
3 April, May and June of a given year being due by July 20 of
4 such year; with the return for July, August and September of
5 a given year being due by October 20 of such year, and with
6 the return for October, November and December of a given year
7 being due by January 20 of the following year.
8 If the retailer is otherwise required to file a monthly
9 or quarterly return and if the retailer's average monthly tax
10 liability with the Department does not exceed $50, the
11 Department may authorize his returns to be filed on an annual
12 basis, with the return for a given year being due by January
13 20 of the following year.
14 Such quarter annual and annual returns, as to form and
15 substance, shall be subject to the same requirements as
16 monthly returns.
17 Notwithstanding any other provision in this Act
18 concerning the time within which a retailer may file his
19 return, in the case of any retailer who ceases to engage in a
20 kind of business which makes him responsible for filing
21 returns under this Act, such retailer shall file a final
22 return under this Act with the Department not more than one
23 month after discontinuing such business.
24 Where the same person has more than one business
25 registered with the Department under separate registrations
26 under this Act, such person may not file each return that is
27 due as a single return covering all such registered
28 businesses, but shall file separate returns for each such
29 registered business.
30 In addition, with respect to motor vehicles, watercraft,
31 aircraft, and trailers that are required to be registered
32 with an agency of this State, every retailer selling this
33 kind of tangible personal property shall file, with the
34 Department, upon a form to be prescribed and supplied by the
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1 Department, a separate return for each such item of tangible
2 personal property which the retailer sells, except that if,
3 in the same transaction, (i) a retailer of aircraft,
4 watercraft, motor vehicles or trailers transfers more than
5 one aircraft, watercraft, motor vehicle or trailer to another
6 aircraft, watercraft, motor vehicle retailer or trailer
7 retailer for the purpose of resale or (ii) a retailer of
8 aircraft, watercraft, motor vehicles, or trailers transfers
9 more than one aircraft, watercraft, motor vehicle, or trailer
10 to a purchaser for use as a qualifying rolling stock as
11 provided in Section 2-5 of this Act, then that seller may
12 report the transfer of all aircraft, watercraft, motor
13 vehicles or trailers involved in that transaction to the
14 Department on the same uniform invoice-transaction reporting
15 return form. For purposes of this Section, "watercraft"
16 means a Class 2, Class 3, or Class 4 watercraft as defined in
17 Section 3-2 of the Boat Registration and Safety Act, a
18 personal watercraft, or any boat equipped with an inboard
19 motor.
20 Any retailer who sells only motor vehicles, watercraft,
21 aircraft, or trailers that are required to be registered with
22 an agency of this State, so that all retailers' occupation
23 tax liability is required to be reported, and is reported, on
24 such transaction reporting returns and who is not otherwise
25 required to file monthly or quarterly returns, need not file
26 monthly or quarterly returns. However, those retailers shall
27 be required to file returns on an annual basis.
28 The transaction reporting return, in the case of motor
29 vehicles or trailers that are required to be registered with
30 an agency of this State, shall be the same document as the
31 Uniform Invoice referred to in Section 5-402 of The Illinois
32 Vehicle Code and must show the name and address of the
33 seller; the name and address of the purchaser; the amount of
34 the selling price including the amount allowed by the
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1 retailer for traded-in property, if any; the amount allowed
2 by the retailer for the traded-in tangible personal property,
3 if any, to the extent to which Section 1 of this Act allows
4 an exemption for the value of traded-in property; the balance
5 payable after deducting such trade-in allowance from the
6 total selling price; the amount of tax due from the retailer
7 with respect to such transaction; the amount of tax collected
8 from the purchaser by the retailer on such transaction (or
9 satisfactory evidence that such tax is not due in that
10 particular instance, if that is claimed to be the fact); the
11 place and date of the sale; a sufficient identification of
12 the property sold; such other information as is required in
13 Section 5-402 of The Illinois Vehicle Code, and such other
14 information as the Department may reasonably require.
15 The transaction reporting return in the case of
16 watercraft or aircraft must show the name and address of the
17 seller; the name and address of the purchaser; the amount of
18 the selling price including the amount allowed by the
19 retailer for traded-in property, if any; the amount allowed
20 by the retailer for the traded-in tangible personal property,
21 if any, to the extent to which Section 1 of this Act allows
22 an exemption for the value of traded-in property; the balance
23 payable after deducting such trade-in allowance from the
24 total selling price; the amount of tax due from the retailer
25 with respect to such transaction; the amount of tax collected
26 from the purchaser by the retailer on such transaction (or
27 satisfactory evidence that such tax is not due in that
28 particular instance, if that is claimed to be the fact); the
29 place and date of the sale, a sufficient identification of
30 the property sold, and such other information as the
31 Department may reasonably require.
32 Such transaction reporting return shall be filed not
33 later than 20 days after the day of delivery of the item that
34 is being sold, but may be filed by the retailer at any time
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1 sooner than that if he chooses to do so. The transaction
2 reporting return and tax remittance or proof of exemption
3 from the Illinois use tax may be transmitted to the
4 Department by way of the State agency with which, or State
5 officer with whom the tangible personal property must be
6 titled or registered (if titling or registration is required)
7 if the Department and such agency or State officer determine
8 that this procedure will expedite the processing of
9 applications for title or registration.
10 With each such transaction reporting return, the retailer
11 shall remit the proper amount of tax due (or shall submit
12 satisfactory evidence that the sale is not taxable if that is
13 the case), to the Department or its agents, whereupon the
14 Department shall issue, in the purchaser's name, a use tax
15 receipt (or a certificate of exemption if the Department is
16 satisfied that the particular sale is tax exempt) which such
17 purchaser may submit to the agency with which, or State
18 officer with whom, he must title or register the tangible
19 personal property that is involved (if titling or
20 registration is required) in support of such purchaser's
21 application for an Illinois certificate or other evidence of
22 title or registration to such tangible personal property.
23 No retailer's failure or refusal to remit tax under this
24 Act precludes a user, who has paid the proper tax to the
25 retailer, from obtaining his certificate of title or other
26 evidence of title or registration (if titling or registration
27 is required) upon satisfying the Department that such user
28 has paid the proper tax (if tax is due) to the retailer. The
29 Department shall adopt appropriate rules to carry out the
30 mandate of this paragraph.
31 If the user who would otherwise pay tax to the retailer
32 wants the transaction reporting return filed and the payment
33 of the tax or proof of exemption made to the Department
34 before the retailer is willing to take these actions and such
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1 user has not paid the tax to the retailer, such user may
2 certify to the fact of such delay by the retailer and may
3 (upon the Department being satisfied of the truth of such
4 certification) transmit the information required by the
5 transaction reporting return and the remittance for tax or
6 proof of exemption directly to the Department and obtain his
7 tax receipt or exemption determination, in which event the
8 transaction reporting return and tax remittance (if a tax
9 payment was required) shall be credited by the Department to
10 the proper retailer's account with the Department, but
11 without the 2.1% or 1.75% discount provided for in this
12 Section being allowed. When the user pays the tax directly
13 to the Department, he shall pay the tax in the same amount
14 and in the same form in which it would be remitted if the tax
15 had been remitted to the Department by the retailer.
16 Refunds made by the seller during the preceding return
17 period to purchasers, on account of tangible personal
18 property returned to the seller, shall be allowed as a
19 deduction under subdivision 5 of his monthly or quarterly
20 return, as the case may be, in case the seller had
21 theretofore included the receipts from the sale of such
22 tangible personal property in a return filed by him and had
23 paid the tax imposed by this Act with respect to such
24 receipts.
25 Where the seller is a corporation, the return filed on
26 behalf of such corporation shall be signed by the president,
27 vice-president, secretary or treasurer or by the properly
28 accredited agent of such corporation.
29 Where the seller is a limited liability company, the
30 return filed on behalf of the limited liability company shall
31 be signed by a manager, member, or properly accredited agent
32 of the limited liability company.
33 Except as provided in this Section, the retailer filing
34 the return under this Section shall, at the time of filing
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1 such return, pay to the Department the amount of tax imposed
2 by this Act less a discount of 2.1% prior to January 1, 1990
3 and 1.75% on and after January 1, 1990, or $5 per calendar
4 year, whichever is greater, which is allowed to reimburse the
5 retailer for the expenses incurred in keeping records,
6 preparing and filing returns, remitting the tax and supplying
7 data to the Department on request. Any prepayment made
8 pursuant to Section 2d of this Act shall be included in the
9 amount on which such 2.1% or 1.75% discount is computed. In
10 the case of retailers who report and pay the tax on a
11 transaction by transaction basis, as provided in this
12 Section, such discount shall be taken with each such tax
13 remittance instead of when such retailer files his periodic
14 return.
15 Before October 1, 2000, if the taxpayer's average monthly
16 tax liability to the Department under this Act, the Use Tax
17 Act, the Service Occupation Tax Act, and the Service Use Tax
18 Act, excluding any liability for prepaid sales tax to be
19 remitted in accordance with Section 2d of this Act, was
20 $10,000 or more during the preceding 4 complete calendar
21 quarters, he shall file a return with the Department each
22 month by the 20th day of the month next following the month
23 during which such tax liability is incurred and shall make
24 payments to the Department on or before the 7th, 15th, 22nd
25 and last day of the month during which such liability is
26 incurred. On and after October 1, 2000, if the taxpayer's
27 average monthly tax liability to the Department under this
28 Act, the Use Tax Act, the Service Occupation Tax Act, and the
29 Service Use Tax Act, excluding any liability for prepaid
30 sales tax to be remitted in accordance with Section 2d of
31 this Act, was $20,000 or more during the preceding 4 complete
32 calendar quarters, he shall file a return with the Department
33 each month by the 20th day of the month next following the
34 month during which such tax liability is incurred and shall
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1 make payment to the Department on or before the 7th, 15th,
2 22nd and last day of the month during which such liability is
3 incurred. If the month during which such tax liability is
4 incurred began prior to January 1, 1985, each payment shall
5 be in an amount equal to 1/4 of the taxpayer's actual
6 liability for the month or an amount set by the Department
7 not to exceed 1/4 of the average monthly liability of the
8 taxpayer to the Department for the preceding 4 complete
9 calendar quarters (excluding the month of highest liability
10 and the month of lowest liability in such 4 quarter period).
11 If the month during which such tax liability is incurred
12 begins on or after January 1, 1985 and prior to January 1,
13 1987, each payment shall be in an amount equal to 22.5% of
14 the taxpayer's actual liability for the month or 27.5% of the
15 taxpayer's liability for the same calendar month of the
16 preceding year. If the month during which such tax liability
17 is incurred begins on or after January 1, 1987 and prior to
18 January 1, 1988, each payment shall be in an amount equal to
19 22.5% of the taxpayer's actual liability for the month or
20 26.25% of the taxpayer's liability for the same calendar
21 month of the preceding year. If the month during which such
22 tax liability is incurred begins on or after January 1, 1988,
23 and prior to January 1, 1989, or begins on or after January
24 1, 1996, each payment shall be in an amount equal to 22.5% of
25 the taxpayer's actual liability for the month or 25% of the
26 taxpayer's liability for the same calendar month of the
27 preceding year. If the month during which such tax liability
28 is incurred begins on or after January 1, 1989, and prior to
29 January 1, 1996, each payment shall be in an amount equal to
30 22.5% of the taxpayer's actual liability for the month or 25%
31 of the taxpayer's liability for the same calendar month of
32 the preceding year or 100% of the taxpayer's actual liability
33 for the quarter monthly reporting period. The amount of such
34 quarter monthly payments shall be credited against the final
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1 tax liability of the taxpayer's return for that month.
2 Before October 1, 2000, once applicable, the requirement of
3 the making of quarter monthly payments to the Department by
4 taxpayers having an average monthly tax liability of $10,000
5 or more as determined in the manner provided above shall
6 continue until such taxpayer's average monthly liability to
7 the Department during the preceding 4 complete calendar
8 quarters (excluding the month of highest liability and the
9 month of lowest liability) is less than $9,000, or until such
10 taxpayer's average monthly liability to the Department as
11 computed for each calendar quarter of the 4 preceding
12 complete calendar quarter period is less than $10,000.
13 However, if a taxpayer can show the Department that a
14 substantial change in the taxpayer's business has occurred
15 which causes the taxpayer to anticipate that his average
16 monthly tax liability for the reasonably foreseeable future
17 will fall below the $10,000 threshold stated above, then such
18 taxpayer may petition the Department for a change in such
19 taxpayer's reporting status. On and after October 1, 2000,
20 once applicable, the requirement of the making of quarter
21 monthly payments to the Department by taxpayers having an
22 average monthly tax liability of $20,000 or more as
23 determined in the manner provided above shall continue until
24 such taxpayer's average monthly liability to the Department
25 during the preceding 4 complete calendar quarters (excluding
26 the month of highest liability and the month of lowest
27 liability) is less than $19,000 or until such taxpayer's
28 average monthly liability to the Department as computed for
29 each calendar quarter of the 4 preceding complete calendar
30 quarter period is less than $20,000. However, if a taxpayer
31 can show the Department that a substantial change in the
32 taxpayer's business has occurred which causes the taxpayer to
33 anticipate that his average monthly tax liability for the
34 reasonably foreseeable future will fall below the $20,000
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1 threshold stated above, then such taxpayer may petition the
2 Department for a change in such taxpayer's reporting status.
3 The Department shall change such taxpayer's reporting status
4 unless it finds that such change is seasonal in nature and
5 not likely to be long term. If any such quarter monthly
6 payment is not paid at the time or in the amount required by
7 this Section, then the taxpayer shall be liable for penalties
8 and interest on the difference between the minimum amount due
9 as a payment and the amount of such quarter monthly payment
10 actually and timely paid, except insofar as the taxpayer has
11 previously made payments for that month to the Department in
12 excess of the minimum payments previously due as provided in
13 this Section. The Department shall make reasonable rules and
14 regulations to govern the quarter monthly payment amount and
15 quarter monthly payment dates for taxpayers who file on other
16 than a calendar monthly basis.
17 Without regard to whether a taxpayer is required to make
18 quarter monthly payments as specified above, any taxpayer who
19 is required by Section 2d of this Act to collect and remit
20 prepaid taxes and has collected prepaid taxes which average
21 in excess of $25,000 per month during the preceding 2
22 complete calendar quarters, shall file a return with the
23 Department as required by Section 2f and shall make payments
24 to the Department on or before the 7th, 15th, 22nd and last
25 day of the month during which such liability is incurred. If
26 the month during which such tax liability is incurred began
27 prior to the effective date of this amendatory Act of 1985,
28 each payment shall be in an amount not less than 22.5% of the
29 taxpayer's actual liability under Section 2d. If the month
30 during which such tax liability is incurred begins on or
31 after January 1, 1986, each payment shall be in an amount
32 equal to 22.5% of the taxpayer's actual liability for the
33 month or 27.5% of the taxpayer's liability for the same
34 calendar month of the preceding calendar year. If the month
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1 during which such tax liability is incurred begins on or
2 after January 1, 1987, each payment shall be in an amount
3 equal to 22.5% of the taxpayer's actual liability for the
4 month or 26.25% of the taxpayer's liability for the same
5 calendar month of the preceding year. The amount of such
6 quarter monthly payments shall be credited against the final
7 tax liability of the taxpayer's return for that month filed
8 under this Section or Section 2f, as the case may be. Once
9 applicable, the requirement of the making of quarter monthly
10 payments to the Department pursuant to this paragraph shall
11 continue until such taxpayer's average monthly prepaid tax
12 collections during the preceding 2 complete calendar quarters
13 is $25,000 or less. If any such quarter monthly payment is
14 not paid at the time or in the amount required, the taxpayer
15 shall be liable for penalties and interest on such
16 difference, except insofar as the taxpayer has previously
17 made payments for that month in excess of the minimum
18 payments previously due.
19 If any payment provided for in this Section exceeds the
20 taxpayer's liabilities under this Act, the Use Tax Act, the
21 Service Occupation Tax Act and the Service Use Tax Act, as
22 shown on an original monthly return, the Department shall, if
23 requested by the taxpayer, issue to the taxpayer a credit
24 memorandum no later than 30 days after the date of payment.
25 The credit evidenced by such credit memorandum may be
26 assigned by the taxpayer to a similar taxpayer under this
27 Act, the Use Tax Act, the Service Occupation Tax Act or the
28 Service Use Tax Act, in accordance with reasonable rules and
29 regulations to be prescribed by the Department. If no such
30 request is made, the taxpayer may credit such excess payment
31 against tax liability subsequently to be remitted to the
32 Department under this Act, the Use Tax Act, the Service
33 Occupation Tax Act or the Service Use Tax Act, in accordance
34 with reasonable rules and regulations prescribed by the
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1 Department. If the Department subsequently determined that
2 all or any part of the credit taken was not actually due to
3 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
4 shall be reduced by 2.1% or 1.75% of the difference between
5 the credit taken and that actually due, and that taxpayer
6 shall be liable for penalties and interest on such
7 difference.
8 If a retailer of motor fuel is entitled to a credit under
9 Section 2d of this Act which exceeds the taxpayer's liability
10 to the Department under this Act for the month which the
11 taxpayer is filing a return, the Department shall issue the
12 taxpayer a credit memorandum for the excess.
13 Beginning January 1, 1990, each month the Department
14 shall pay into the Local Government Tax Fund, a special fund
15 in the State treasury which is hereby created, the net
16 revenue realized for the preceding month from the 1% tax on
17 sales of food for human consumption which is to be consumed
18 off the premises where it is sold (other than alcoholic
19 beverages, soft drinks and food which has been prepared for
20 immediate consumption) and prescription and nonprescription
21 medicines, drugs, medical appliances and insulin, urine
22 testing materials, syringes and needles used by diabetics.
23 Beginning January 1, 1990, each month the Department
24 shall pay into the County and Mass Transit District Fund, a
25 special fund in the State treasury which is hereby created,
26 4% of the net revenue realized for the preceding month from
27 the 6.25% general rate.
28 Beginning August 1, 2000, each month the Department shall
29 pay into the County and Mass Transit District Fund 20% of the
30 net revenue realized for the preceding month from the 1.25%
31 rate on the selling price of motor fuel and gasohol.
32 Each month the Department shall pay into the County and
33 Mass Transit District Fund 20% of the net revenue realized
34 for the preceding month from the 1.25% rate imposed upon the
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1 sale of any motor vehicle that is sold at retail to a lessor
2 for purposes of leasing under a lease subject to the
3 Automobile Leasing Occupation and Use Tax Act.
4 Beginning January 1, 1990, each month the Department
5 shall pay into the Local Government Tax Fund 16% of the net
6 revenue realized for the preceding month from the 6.25%
7 general rate on the selling price of tangible personal
8 property.
9 Beginning August 1, 2000, each month the Department shall
10 pay into the Local Government Tax Fund 80% of the net revenue
11 realized for the preceding month from the 1.25% rate on the
12 selling price of motor fuel and gasohol.
13 Each month the Department shall pay into the Local
14 Government Tax Fund 80% of the net revenue realized for the
15 preceding month from the 1.25% rate imposed upon the sale of
16 any motor vehicle that is sold at retail to a lessor for
17 purposes of leasing under a lease subject to the Automobile
18 Leasing Occupation and Use Tax Act.
19 Of the remainder of the moneys received by the Department
20 pursuant to this Act, and including all moneys received by
21 the Department pursuant to Section 10 of the Automobile
22 Leasing Occupation and Use Tax Act, and including all of the
23 moneys received pursuant to the 5% rate imposed upon sales of
24 motor vehicles by lessors to the lessees of such vehicles in
25 connection with a lease that was subject to the Automobile
26 Leasing Occupation and Use Tax Act Of the remainder of the
27 moneys received by the Department pursuant to this Act, (a)
28 1.75% thereof shall be paid into the Build Illinois Fund and
29 (b) prior to July 1, 1989, 2.2% and on and after July 1,
30 1989, 3.8% thereof shall be paid into the Build Illinois
31 Fund; provided, however, that if in any fiscal year the sum
32 of (1) the aggregate of 2.2% or 3.8%, as the case may be, of
33 the moneys received by the Department and required to be paid
34 into the Build Illinois Fund pursuant to this Act, Section 9
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1 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
2 Section 9 of the Service Occupation Tax Act, such Acts being
3 hereinafter called the "Tax Acts" and such aggregate of 2.2%
4 or 3.8%, as the case may be, of moneys being hereinafter
5 called the "Tax Act Amount", and (2) the amount transferred
6 to the Build Illinois Fund from the State and Local Sales Tax
7 Reform Fund shall be less than the Annual Specified Amount
8 (as hereinafter defined), an amount equal to the difference
9 shall be immediately paid into the Build Illinois Fund from
10 other moneys received by the Department pursuant to the Tax
11 Acts; the "Annual Specified Amount" means the amounts
12 specified below for fiscal years 1986 through 1993:
13 Fiscal Year Annual Specified Amount
14 1986 $54,800,000
15 1987 $76,650,000
16 1988 $80,480,000
17 1989 $88,510,000
18 1990 $115,330,000
19 1991 $145,470,000
20 1992 $182,730,000
21 1993 $206,520,000;
22 and means the Certified Annual Debt Service Requirement (as
23 defined in Section 13 of the Build Illinois Bond Act) or the
24 Tax Act Amount, whichever is greater, for fiscal year 1994
25 and each fiscal year thereafter; and further provided, that
26 if on the last business day of any month the sum of (1) the
27 Tax Act Amount required to be deposited into the Build
28 Illinois Bond Account in the Build Illinois Fund during such
29 month and (2) the amount transferred to the Build Illinois
30 Fund from the State and Local Sales Tax Reform Fund shall
31 have been less than 1/12 of the Annual Specified Amount, an
32 amount equal to the difference shall be immediately paid into
33 the Build Illinois Fund from other moneys received by the
34 Department pursuant to the Tax Acts; and, further provided,
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1 that in no event shall the payments required under the
2 preceding proviso result in aggregate payments into the Build
3 Illinois Fund pursuant to this clause (b) for any fiscal year
4 in excess of the greater of (i) the Tax Act Amount or (ii)
5 the Annual Specified Amount for such fiscal year. The
6 amounts payable into the Build Illinois Fund under clause (b)
7 of the first sentence in this paragraph shall be payable only
8 until such time as the aggregate amount on deposit under each
9 trust indenture securing Bonds issued and outstanding
10 pursuant to the Build Illinois Bond Act is sufficient, taking
11 into account any future investment income, to fully provide,
12 in accordance with such indenture, for the defeasance of or
13 the payment of the principal of, premium, if any, and
14 interest on the Bonds secured by such indenture and on any
15 Bonds expected to be issued thereafter and all fees and costs
16 payable with respect thereto, all as certified by the
17 Director of the Bureau of the Budget. If on the last
18 business day of any month in which Bonds are outstanding
19 pursuant to the Build Illinois Bond Act, the aggregate of
20 moneys deposited in the Build Illinois Bond Account in the
21 Build Illinois Fund in such month shall be less than the
22 amount required to be transferred in such month from the
23 Build Illinois Bond Account to the Build Illinois Bond
24 Retirement and Interest Fund pursuant to Section 13 of the
25 Build Illinois Bond Act, an amount equal to such deficiency
26 shall be immediately paid from other moneys received by the
27 Department pursuant to the Tax Acts to the Build Illinois
28 Fund; provided, however, that any amounts paid to the Build
29 Illinois Fund in any fiscal year pursuant to this sentence
30 shall be deemed to constitute payments pursuant to clause (b)
31 of the first sentence of this paragraph and shall reduce the
32 amount otherwise payable for such fiscal year pursuant to
33 that clause (b). The moneys received by the Department
34 pursuant to this Act and required to be deposited into the
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1 Build Illinois Fund are subject to the pledge, claim and
2 charge set forth in Section 12 of the Build Illinois Bond
3 Act.
4 Subject to payment of amounts into the Build Illinois
5 Fund as provided in the preceding paragraph or in any
6 amendment thereto hereafter enacted, the following specified
7 monthly installment of the amount requested in the
8 certificate of the Chairman of the Metropolitan Pier and
9 Exposition Authority provided under Section 8.25f of the
10 State Finance Act, but not in excess of sums designated as
11 "Total Deposit", shall be deposited in the aggregate from
12 collections under Section 9 of the Use Tax Act, Section 9 of
13 the Service Use Tax Act, Section 9 of the Service Occupation
14 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
15 into the McCormick Place Expansion Project Fund in the
16 specified fiscal years.
17 Fiscal Year Total Deposit
18 1993 $0
19 1994 53,000,000
20 1995 58,000,000
21 1996 61,000,000
22 1997 64,000,000
23 1998 68,000,000
24 1999 71,000,000
25 2000 75,000,000
26 2001 80,000,000
27 2002 84,000,000
28 2003 89,000,000
29 2004 93,000,000
30 2005 97,000,000
31 2006 102,000,000
32 2007 108,000,000
33 2008 115,000,000
34 2009 120,000,000
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1 2010 126,000,000
2 2011 132,000,000
3 2012 138,000,000
4 2013 and 145,000,000
5 each fiscal year
6 thereafter that bonds
7 are outstanding under
8 Section 13.2 of the
9 Metropolitan Pier and
10 Exposition Authority
11 Act, but not after fiscal year 2029.
12 Beginning July 20, 1993 and in each month of each fiscal
13 year thereafter, one-eighth of the amount requested in the
14 certificate of the Chairman of the Metropolitan Pier and
15 Exposition Authority for that fiscal year, less the amount
16 deposited into the McCormick Place Expansion Project Fund by
17 the State Treasurer in the respective month under subsection
18 (g) of Section 13 of the Metropolitan Pier and Exposition
19 Authority Act, plus cumulative deficiencies in the deposits
20 required under this Section for previous months and years,
21 shall be deposited into the McCormick Place Expansion Project
22 Fund, until the full amount requested for the fiscal year,
23 but not in excess of the amount specified above as "Total
24 Deposit", has been deposited.
25 Subject to payment of amounts into the Build Illinois
26 Fund and the McCormick Place Expansion Project Fund pursuant
27 to the preceding paragraphs or in any amendment thereto
28 hereafter enacted, each month the Department shall pay into
29 the Local Government Distributive Fund 0.4% of the net
30 revenue realized for the preceding month from the 5% general
31 rate or 0.4% of 80% of the net revenue realized for the
32 preceding month from the 6.25% general rate, as the case may
33 be, on the selling price of tangible personal property which
34 amount shall, subject to appropriation, be distributed as
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1 provided in Section 2 of the State Revenue Sharing Act. No
2 payments or distributions pursuant to this paragraph shall be
3 made if the tax imposed by this Act on photoprocessing
4 products is declared unconstitutional, or if the proceeds
5 from such tax are unavailable for distribution because of
6 litigation.
7 Subject to payment of amounts into the Build Illinois
8 Fund, the McCormick Place Expansion Project Fund, and the
9 Local Government Distributive Fund pursuant to the preceding
10 paragraphs or in any amendments thereto hereafter enacted,
11 beginning July 1, 1993, the Department shall each month pay
12 into the Illinois Tax Increment Fund 0.27% of 80% of the net
13 revenue realized for the preceding month from the 6.25%
14 general rate on the selling price of tangible personal
15 property.
16 Of the remainder of the moneys received by the Department
17 pursuant to this Act, 75% thereof shall be paid into the
18 State Treasury and 25% shall be reserved in a special account
19 and used only for the transfer to the Common School Fund as
20 part of the monthly transfer from the General Revenue Fund in
21 accordance with Section 8a of the State Finance Act.
22 The Department may, upon separate written notice to a
23 taxpayer, require the taxpayer to prepare and file with the
24 Department on a form prescribed by the Department within not
25 less than 60 days after receipt of the notice an annual
26 information return for the tax year specified in the notice.
27 Such annual return to the Department shall include a
28 statement of gross receipts as shown by the retailer's last
29 Federal income tax return. If the total receipts of the
30 business as reported in the Federal income tax return do not
31 agree with the gross receipts reported to the Department of
32 Revenue for the same period, the retailer shall attach to his
33 annual return a schedule showing a reconciliation of the 2
34 amounts and the reasons for the difference. The retailer's
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1 annual return to the Department shall also disclose the cost
2 of goods sold by the retailer during the year covered by such
3 return, opening and closing inventories of such goods for
4 such year, costs of goods used from stock or taken from stock
5 and given away by the retailer during such year, payroll
6 information of the retailer's business during such year and
7 any additional reasonable information which the Department
8 deems would be helpful in determining the accuracy of the
9 monthly, quarterly or annual returns filed by such retailer
10 as provided for in this Section.
11 If the annual information return required by this Section
12 is not filed when and as required, the taxpayer shall be
13 liable as follows:
14 (i) Until January 1, 1994, the taxpayer shall be
15 liable for a penalty equal to 1/6 of 1% of the tax due
16 from such taxpayer under this Act during the period to be
17 covered by the annual return for each month or fraction
18 of a month until such return is filed as required, the
19 penalty to be assessed and collected in the same manner
20 as any other penalty provided for in this Act.
21 (ii) On and after January 1, 1994, the taxpayer
22 shall be liable for a penalty as described in Section 3-4
23 of the Uniform Penalty and Interest Act.
24 The chief executive officer, proprietor, owner or highest
25 ranking manager shall sign the annual return to certify the
26 accuracy of the information contained therein. Any person
27 who willfully signs the annual return containing false or
28 inaccurate information shall be guilty of perjury and
29 punished accordingly. The annual return form prescribed by
30 the Department shall include a warning that the person
31 signing the return may be liable for perjury.
32 The provisions of this Section concerning the filing of
33 an annual information return do not apply to a retailer who
34 is not required to file an income tax return with the United
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1 States Government.
2 As soon as possible after the first day of each month,
3 upon certification of the Department of Revenue, the
4 Comptroller shall order transferred and the Treasurer shall
5 transfer from the General Revenue Fund to the Motor Fuel Tax
6 Fund an amount equal to 1.7% of 80% of the net revenue
7 realized under this Act for the second preceding month.
8 Beginning April 1, 2000, this transfer is no longer required
9 and shall not be made.
10 Net revenue realized for a month shall be the revenue
11 collected by the State pursuant to this Act, less the amount
12 paid out during that month as refunds to taxpayers for
13 overpayment of liability.
14 For greater simplicity of administration, manufacturers,
15 importers and wholesalers whose products are sold at retail
16 in Illinois by numerous retailers, and who wish to do so, may
17 assume the responsibility for accounting and paying to the
18 Department all tax accruing under this Act with respect to
19 such sales, if the retailers who are affected do not make
20 written objection to the Department to this arrangement.
21 Any person who promotes, organizes, provides retail
22 selling space for concessionaires or other types of sellers
23 at the Illinois State Fair, DuQuoin State Fair, county fairs,
24 local fairs, art shows, flea markets and similar exhibitions
25 or events, including any transient merchant as defined by
26 Section 2 of the Transient Merchant Act of 1987, is required
27 to file a report with the Department providing the name of
28 the merchant's business, the name of the person or persons
29 engaged in merchant's business, the permanent address and
30 Illinois Retailers Occupation Tax Registration Number of the
31 merchant, the dates and location of the event and other
32 reasonable information that the Department may require. The
33 report must be filed not later than the 20th day of the month
34 next following the month during which the event with retail
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1 sales was held. Any person who fails to file a report
2 required by this Section commits a business offense and is
3 subject to a fine not to exceed $250.
4 Any person engaged in the business of selling tangible
5 personal property at retail as a concessionaire or other type
6 of seller at the Illinois State Fair, county fairs, art
7 shows, flea markets and similar exhibitions or events, or any
8 transient merchants, as defined by Section 2 of the Transient
9 Merchant Act of 1987, may be required to make a daily report
10 of the amount of such sales to the Department and to make a
11 daily payment of the full amount of tax due. The Department
12 shall impose this requirement when it finds that there is a
13 significant risk of loss of revenue to the State at such an
14 exhibition or event. Such a finding shall be based on
15 evidence that a substantial number of concessionaires or
16 other sellers who are not residents of Illinois will be
17 engaging in the business of selling tangible personal
18 property at retail at the exhibition or event, or other
19 evidence of a significant risk of loss of revenue to the
20 State. The Department shall notify concessionaires and other
21 sellers affected by the imposition of this requirement. In
22 the absence of notification by the Department, the
23 concessionaires and other sellers shall file their returns as
24 otherwise required in this Section.
25 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98;
26 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff.
27 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00; 91-901,
28 eff. 1-1-01; revised 1-15-01.)
29 Section 99-45. The Hotel Operators' Occupation Tax Act
30 is amended by changing Section 9 as follows:
31 (35 ILCS 145/9) (from Ch. 120, par. 481b.39)
32 Sec. 9. Exemptions. The tax imposed under this Act does
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1 not apply to the following:
2 (1) Persons engaged in the business of renting, leasing
3 or letting rooms in a hotel only to permanent residents are
4 exempt from the provisions of this Act.
5 (2) The renting, leasing, or letting of rooms in a hotel
6 to an organization chartered by the United States Congress to
7 provide disaster relief services when the rooms are rented on
8 behalf of its personnel who are providing relief services or
9 when the rooms are rented for the benefit of victims of a
10 natural or man-made disaster.
11 (Source: Laws 1961, p. 1728.)
12 Section 99-50. The Motor Fuel Tax Law is amended by
13 changing Sections 2, 13, and 13a adding Section 8b as
14 follows:
15 (35 ILCS 505/2) (from Ch. 120, par. 418)
16 Sec. 2. A tax is imposed on the privilege of operating
17 motor vehicles upon the public highways and recreational-type
18 watercraft upon the waters of this State.
19 (a) Prior to August 1, 1989, the tax is imposed at the
20 rate of 13 cents per gallon on all motor fuel used in motor
21 vehicles operating on the public highways and recreational
22 type watercraft operating upon the waters of this State.
23 Beginning on August 1, 1989 and until January 1, 1990, the
24 rate of the tax imposed in this paragraph shall be 16 cents
25 per gallon. Beginning January 1, 1990, the rate of tax
26 imposed in this paragraph shall be 19 cents per gallon.
27 (b) The tax on the privilege of operating motor vehicles
28 which use diesel fuel shall be the rate according to
29 paragraph (a) plus an additional 2 1/2 cents per gallon.
30 "Diesel fuel" is defined as any petroleum product intended
31 for use or offered for sale as a fuel for engines in which
32 the fuel is injected into the combustion chamber and ignited
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1 by pressure without electric spark.
2 (c) A tax is imposed upon the privilege of engaging in
3 the business of selling motor fuel as a retailer or reseller
4 on all motor fuel used in motor vehicles operating on the
5 public highways and recreational type watercraft operating
6 upon the waters of this State: (1) at the rate of 3 cents per
7 gallon on motor fuel owned or possessed by such retailer or
8 reseller at 12:01 a.m. on August 1, 1989; and (2) at the rate
9 of 3 cents per gallon on motor fuel owned or possessed by
10 such retailer or reseller at 12:01 A.M. on January 1, 1990.
11 Retailers and resellers who are subject to this
12 additional tax shall be required to inventory such motor fuel
13 and pay this additional tax in a manner prescribed by the
14 Department of Revenue.
15 The tax imposed in this paragraph (c) shall be in
16 addition to all other taxes imposed by the State of Illinois
17 or any unit of local government in this State.
18 (d) Except as provided in Section 2a, the collection of
19 a tax based on gallonage of gasoline used for the propulsion
20 of any aircraft is prohibited on and after October 1, 1979.
21 (e) The collection of a tax, based on gallonage of all
22 products commonly or commercially known or sold as 1-K
23 kerosene, regardless of its classification or uses, is
24 prohibited (i) on and after July 1, 1992 until December 31,
25 1999, except when the 1-K kerosene is either: (1) delivered
26 into bulk storage facilities of a bulk user, or (2) delivered
27 directly into the fuel supply tanks of motor vehicles and
28 (ii) on and after January 1, 2000. Beginning on January 1,
29 2000, the collection of a tax, based on gallonage of all
30 products commonly or commercially known or sold as 1-K
31 kerosene, regardless of its classification or uses, is
32 prohibited except when the 1-K kerosene is delivered directly
33 into a storage tank that is located at a facility that has
34 withdrawal facilities that are readily accessible to and are
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1 capable of dispensing 1-K kerosene into the fuel supply tanks
2 of motor vehicles.
3 Any person who sells or uses 1-K kerosene for use in
4 motor vehicles upon which the tax imposed by this Law has not
5 been paid shall be liable for any tax due on the sales or use
6 of 1-K kerosene.
7 (f) Beginning on July 1, 2001, no tax shall be imposed
8 under this Act on alternate fuel, as defined in Section 10 of
9 the Alternate Fuels Act, used in motor vehicles operating on
10 the public highways and recreational type watercraft
11 operating on the waters of this State. The exemption from
12 taxation created by this subsection (f) shall remain in
13 effect through June 30, 2006 or until the amount of tax
14 revenue that would have been paid into the Motor Fuel Tax
15 Fund, but for the provisions of this subsection (f), equals
16 $9,500,000, whichever occurs first.
17 (Source: P.A. 91-173, eff. 1-1-00.)
18 (35 ILCS 505/8b new)
19 Sec. 8b. Transfer of funds. On July 1 of 2001, 2002,
20 2003, 2004, and 2005, the amount of $1,900,000 shall be
21 transferred from the General Revenue Fund into the Motor Fuel
22 Tax Fund. The Motor Fuel Tax Fund shall reimburse the General
23 Revenue Fund for the transfers made under this Section. The
24 reimbursement shall occur in fiscal year 2007.
25 (35 ILCS 505/13) (from Ch. 120, par. 429)
26 Sec. 13. Any person other than a distributor or
27 supplier, who loses motor fuel through any cause or uses
28 motor fuel (upon which he has paid the amount required to be
29 collected under Section 2 of this Act) for any purpose other
30 than operating a motor vehicle upon the public highways or
31 waters, shall be reimbursed and repaid the amount so paid.
32 Any person who purchases motor fuel in Illinois and uses
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1 that motor fuel in another state and that other state imposes
2 a tax on the use of such motor fuel shall be reimbursed and
3 repaid the amount of Illinois tax paid under Section 2 of
4 this Act on the motor fuel used in such other state.
5 Reimbursement and repayment shall be made by the Department
6 upon receipt of adequate proof of taxes paid to another state
7 and the amount of motor fuel used in that state.
8 Claims for such reimbursement must be made to the
9 Department of Revenue, duly verified by the claimant (or by
10 the claimant's legal representative if the claimant has died
11 or become a person under legal disability), upon forms
12 prescribed by the Department. The claim must state such
13 facts relating to the purchase, importation, manufacture or
14 production of the motor fuel by the claimant as the
15 Department may deem necessary, and the time when, and the
16 circumstances of its loss or the specific purpose for which
17 it was used (as the case may be), together with such other
18 information as the Department may reasonably require. No
19 claim based upon idle time shall be allowed, except for idle
20 time validated by means of an electronic engine monitoring
21 device agreed upon by the taxpayer and the Department for
22 fuel consumed during nonhighway use by vehicles of the second
23 division, as defined in the Illinois Vehicle Code. For
24 purposes of this Section, "idle time" means the period of
25 time the vehicle is running while the driver is at rest, in
26 line waiting to deliver, delivering, warming the engine, or
27 keeping the engine warm. Claims for full reimbursement must
28 be filed not later than one year after the date on which the
29 tax was paid by the claimant.
30 If, however, a claim for such reimbursement otherwise
31 meeting the requirements of this Section is filed more than
32 one year but less than 2 years after that date, the claimant
33 shall be reimbursed at the rate of 80% of the amount to which
34 he would have been entitled if his claim had been timely
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1 filed.
2 The Department may make such investigation of the
3 correctness of the facts stated in such claims as it deems
4 necessary. When the Department has approved any such claim,
5 it shall pay to the claimant (or to the claimant's legal
6 representative, as such if the claimant has died or become a
7 person under legal disability) the reimbursement provided in
8 this Section, out of any moneys appropriated to it for that
9 purpose.
10 Any distributor or supplier who has paid the tax imposed
11 by Section 2 of this Act upon motor fuel lost or used by such
12 distributor or supplier for any purpose other than operating
13 a motor vehicle upon the public highways or waters may file a
14 claim for credit or refund to recover the amount so paid.
15 Such claims shall be filed on forms prescribed by the
16 Department. Such claims shall be made to the Department,
17 duly verified by the claimant (or by the claimant's legal
18 representative if the claimant has died or become a person
19 under legal disability), upon forms prescribed by the
20 Department. The claim shall state such facts relating to the
21 purchase, importation, manufacture or production of the motor
22 fuel by the claimant as the Department may deem necessary and
23 the time when the loss or nontaxable use occurred, and the
24 circumstances of its loss or the specific purpose for which
25 it was used (as the case may be), together with such other
26 information as the Department may reasonably require. Claims
27 must be filed not later than one year after the date on which
28 the tax was paid by the claimant.
29 The Department may make such investigation of the
30 correctness of the facts stated in such claims as it deems
31 necessary. When the Department approves a claim, the
32 Department shall issue a refund or credit memorandum as
33 requested by the taxpayer, to the distributor or supplier who
34 made the payment for which the refund or credit is being
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1 given or, if the distributor or supplier has died or become
2 incompetent, to such distributor's or supplier's legal
3 representative, as such. The amount of such credit
4 memorandum shall be credited against any tax due or to become
5 due under this Act from the distributor or supplier who made
6 the payment for which credit has been given.
7 Any credit or refund that is allowed under this Section
8 shall bear interest at the rate and in the manner specified
9 in the Uniform Penalty and Interest Act.
10 In case the distributor or supplier requests and the
11 Department determines that the claimant is entitled to a
12 refund, such refund shall be made only from such
13 appropriation as may be available for that purpose. If it
14 appears unlikely that the amount appropriated would permit
15 everyone having a claim allowed during the period covered by
16 such appropriation to elect to receive a cash refund, the
17 Department, by rule or regulation, shall provide for the
18 payment of refunds in hardship cases and shall define what
19 types of cases qualify as hardship cases.
20 In any case in which there has been an erroneous refund
21 of tax payable under this Section, a notice of tax liability
22 may be issued at any time within 3 years from the making of
23 that refund, or within 5 years from the making of that refund
24 if it appears that any part of the refund was induced by
25 fraud or the misrepresentation of material fact. The amount
26 of any proposed assessment set forth by the Department shall
27 be limited to the amount of the erroneous refund.
28 If no tax is due and no proceeding is pending to
29 determine whether such distributor or supplier is indebted to
30 the Department for tax, the credit memorandum so issued may
31 be assigned and set over by the lawful holder thereof,
32 subject to reasonable rules of the Department, to any other
33 licensed distributor or supplier who is subject to this Act,
34 and the amount thereof applied by the Department against any
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1 tax due or to become due under this Act from such assignee.
2 If the payment for which the distributor's or supplier's
3 claim is filed is held in the protest fund of the State
4 Treasury during the pendency of the claim for credit
5 proceedings pursuant to the order of the court in accordance
6 with Section 2a of the State Officers and Employees Money
7 Disposition Act and if it is determined by the Department or
8 by the final order of a reviewing court under the
9 Administrative Review Law that the claimant is entitled to
10 all or a part of the credit claimed, the claimant, instead of
11 receiving a credit memorandum from the Department, shall
12 receive a cash refund from the protest fund as provided for
13 in Section 2a of the State Officers and Employees Money
14 Disposition Act.
15 If any person ceases to be licensed as a distributor or
16 supplier while still holding an unused credit memorandum
17 issued under this Act, such person may, at his election
18 (instead of assigning the credit memorandum to a licensed
19 distributor or licensed supplier under this Act), surrender
20 such unused credit memorandum to the Department and receive a
21 refund of the amount to which such person is entitled.
22 No claim based upon the use of undyed diesel fuel shall
23 be allowed except for undyed diesel fuel used by a commercial
24 vehicle, as that term is defined in Section 1-111.8 of the
25 Illinois Vehicle Code, for any purpose other than operating
26 the commercial vehicle upon the public highways and
27 unlicensed commercial vehicles operating on private property.
28 Claims shall be limited to commercial vehicles that are
29 operated for both highway purposes and any purposes other
30 than operating such vehicles upon the public highways. The
31 Department shall promulgate regulations establishing specific
32 limits on the amount of undyed diesel fuel that may be
33 claimed for refund.
34 For purposes of claims for refund, "loss" means the
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1 reduction of motor fuel resulting from fire, theft, spillage,
2 spoilage, leakage, or any other provable cause, but does not
3 include a reduction resulting from evaporation or shrinkage
4 due to temperature variations.
5 (Source: P.A. 90-491, eff. 1-1-98; 91-173, eff. 1-1-00.)
6 (35 ILCS 505/13a) (from Ch. 120, par. 429a)
7 Sec. 13a. (1) A tax is hereby imposed upon the use of
8 motor fuel upon highways of this State by commercial motor
9 vehicles. The tax shall be comprised of 2 parts. Part (a)
10 shall be at the rate established by Section 2 of this Act, as
11 heretofore or hereafter amended. Part (b) shall be at the
12 rate established by subsection (2) of this Section as now or
13 hereafter amended.
14 (2) A rate shall be established by the Department as of
15 January 1 of each year through the year 2001 using the
16 average "selling price", as defined in the Retailers'
17 Occupation Tax Act, per gallon of motor fuel sold in this
18 State during the previous 12 months and multiplying it by 6
19 1/4% to determine the cents per gallon rate. For the period
20 beginning on July 1, 2000 and through December 31, 2000, the
21 Department shall establish a rate using the average "selling
22 price", as defined in the Retailers' Occupation Tax Act, per
23 gallon of motor fuel sold in this State during calendar year
24 1999 and multiplying it by 1.25% to determine the cents per
25 gallon rate. For the period beginning on July 1, 2001 and
26 through December 31, 2001, the Department shall establish a
27 rate using the average selling price per gallon of motor fuel
28 sold in this State during calendar year 2000 and multiplying
29 it by 1.25% to determine the cents per gallon rate.
30 Beginning in 2002, a rate shall be established by the
31 Department as of January 1 of each year using the average
32 selling price per gallon of motor fuel sold in this State
33 during the previous 12 months and multiplying it by 1.25% to
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1 determine the cents per gallon rate.
2 (Source: P.A. 91-872, eff. 7-1-00.)
3 Section 99-55. The Gas Revenue Tax Act is amended by
4 changing Section 2 as follows:
5 (35 ILCS 615/2) (from Ch. 120, par. 467.17)
6 Sec. 2. Tax on use or consumption; imposed; rate.
7 (a) Through November 30, 2001 and then on and after June
8 1, 2002, a tax is imposed upon persons engaged in the
9 business of distributing, supplying, furnishing or selling
10 gas to persons for use or consumption and not for resale at
11 the rate of 2.4 cents per therm of all gas which is so
12 distributed, supplied, furnished, sold or transported to or
13 for each customer in the course of such business, or 5% of
14 the gross receipts received from each customer from such
15 business, whichever is the lower rate as applied to each
16 customer for that customer's billing period, provided that
17 any change in rate imposed by this amendatory Act of 1985
18 shall become effective only with bills having a meter reading
19 date on or after January 1, 1986. However, such taxes are not
20 imposed with respect to any business in interstate commerce,
21 or otherwise to the extent to which such business may not,
22 under the Constitution and statutes of the United States, be
23 made the subject of taxation by this State.
24 Nothing in this amendatory Act of 1985 shall impose a tax
25 with respect to any transaction with respect to which no tax
26 was imposed immediately preceding the effective date of this
27 amendatory Act of 1985.
28 (b) No tax is imposed under this Section for the period
29 beginning December 1, 2001 through May 31, 2002. If a
30 customer's billing period includes (i) days before December
31 1, 2001 or days after May 31, 2002 and (ii) days in the
32 period beginning December 1, 2001 through May 31, 2002, then
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1 taxable therms or taxable gross receipts shall be determined
2 by multiplying the total therms or gross receipts during the
3 billing period by the number of days in the billing period
4 that were before December 1, 2001 or after May 31, 2002 and
5 then dividing the result by the total number of days in the
6 billing period.
7 (Source: P.A. 84-307; 84-1093.)
8 Section 99-60. The Higher Education Student Assistance
9 Act is amended by changing Section 65.25 as follows:
10 (110 ILCS 947/65.25)
11 Sec. 65.25. Teacher shortage scholarships; loan
12 forgiveness.
13 (a) The Commission may annually award a number of
14 scholarships to persons preparing to teach in areas of
15 identified staff shortages. Such scholarships shall be
16 issued to individuals who make application to the Commission
17 and who agree to take courses at qualified institutions of
18 higher learning which will prepare them to teach in areas of
19 identified staff shortages.
20 (b) Scholarships awarded under this Section shall be
21 issued pursuant to regulations promulgated by the Commission;
22 provided that no rule or regulation promulgated by the State
23 Board of Education prior to the effective date of this
24 amendatory Act of 1993 pursuant to the exercise of any right,
25 power, duty, responsibility or matter of pending business
26 transferred from the State Board of Education to the
27 Commission under this Section shall be affected thereby, and
28 all such rules and regulations shall become the rules and
29 regulations of the Commission until modified or changed by
30 the Commission in accordance with law. The Commission shall
31 allocate the scholarships awarded between persons initially
32 preparing to teach, persons holding valid teaching
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1 certificates issued under Articles 21 and 34 of the School
2 Code, and persons holding a bachelor's degree from any
3 accredited college or university who have been employed for a
4 minimum of 10 years in a field other than teaching.
5 (c) Each scholarship shall be utilized by its holder for
6 the payment of tuition and non-revenue bond fees at any
7 qualified institution of higher learning. Such tuition and
8 fees shall be available only for courses that will enable the
9 individual to be certified to teach in areas of identified
10 staff shortages. The Commission shall determine which
11 courses are eligible for tuition payments under this Section.
12 (d) The Commission may make tuition payments directly to
13 the qualified institution of higher learning which the
14 individual attends for the courses prescribed or may make
15 payments to the teacher. Any teacher who received payments
16 and who fails to enroll in the courses prescribed shall
17 refund the payments to the Commission.
18 (e) Following the completion of the program of study,
19 persons who held valid teaching certificates and persons
20 holding a bachelor's degree from any accredited college or
21 university who have been employed for a minimum of 10 years
22 in a field other than teaching prior to receiving a teacher
23 shortage scholarship must accept employment within 2 years in
24 a school in Illinois within 60 miles of the person's
25 residence to teach in an area of identified staff shortage
26 for a period of at least 3 years; provided, however that any
27 such person instead may elect to accept employment within
28 such 2 year period to teach in an area of identified staff
29 shortage for a period of at least 3 years in a school in
30 Illinois which is more than 60 miles from such person's
31 residence. Persons initially preparing to teach prior to
32 receiving a teacher shortage scholarship must accept
33 employment within 2 years in a school in Illinois to teach in
34 an area of identified staff shortage for a period of at least
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1 3 years. Individuals who fail to comply with this provision
2 shall refund all of the scholarships awarded to the
3 Commission, whether payments were made directly to the
4 institutions of higher learning or to the individuals, and
5 this condition shall be agreed to in writing by all
6 scholarship recipients at the time the scholarship is
7 awarded. No individual shall be required to refund tuition
8 payments if his or her failure to obtain employment as a
9 teacher in a school is the result of financial conditions
10 within school districts. The rules and regulations
11 promulgated as provided in this Section shall contain
12 provisions regarding the waiving and deferral of such
13 payments.
14 (f) The Commission, with the cooperation of the State
15 Board of Education, shall assist individuals who have
16 participated in the scholarship program established by this
17 Section in finding employment in areas of identified staff
18 shortages.
19 (g) Beginning in September, 1994 and annually
20 thereafter, the Commission, using data annually supplied by
21 the State Board of Education under procedures developed by it
22 to measure the level of shortage of qualified bilingual
23 personnel serving students with disabilities, shall annually
24 publish (i) the level of shortage of qualified bilingual
25 personnel serving students with disabilities, and (ii)
26 allocations of scholarships for personnel preparation
27 training programs in the areas of bilingual special education
28 teacher training and bilingual school service personnel.
29 (h) Appropriations for the scholarships outlined in this
30 Section shall be made to the Commission from funds
31 appropriated by the General Assembly. The Commission shall
32 request an appropriation each year to sufficiently fund at
33 least 25 scholarships.
34 (i) This Section is substantially the same as Section
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1 30-4c of the School Code, which Section is repealed by this
2 amendatory Act of 1993, and shall be construed as a
3 continuation of the teacher shortage scholarship program
4 established under that prior law, and not as a new or
5 different teacher shortage scholarship program. The State
6 Board of Education shall transfer to the Commission, as the
7 successor to the State Board of Education for all purposes of
8 administering and implementing the provisions of this
9 Section, all books, accounts, records, papers, documents,
10 contracts, agreements, and pending business in any way
11 relating to the teacher shortage scholarship program
12 continued under this Section; and all scholarships at any
13 time awarded under that program by, and all applications for
14 any such scholarships at any time made to, the State Board of
15 Education shall be unaffected by the transfer to the
16 Commission of all responsibility for the administration and
17 implementation of the teacher shortage scholarship program
18 continued under this Section. The State Board of Education
19 shall furnish to the Commission such other information as the
20 Commission may request to assist it in administering this
21 Section.
22 (i-5) The Commission shall establish a loan forgiveness
23 program in which 15% of a person's student loans are forgiven
24 by teaching in a public school in this State in an area of
25 identified staff shortage for a period of one year, with an
26 additional 5% in loan forgiveness for each year thereafter.
27 However, the maximum rate of loan forgiveness per person
28 under this program may not exceed 30%.
29 (j) For the purposes of this Section:
30 "Qualified institution of higher learning" means the
31 University of Illinois, Southern Illinois University, Chicago
32 State University, Eastern Illinois University, Governors
33 State University, Illinois State University, Northeastern
34 Illinois University, Northern Illinois University, Western
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1 Illinois University, the public community colleges subject to
2 the Public Community College Act and any Illinois privately
3 operated college, community college or university offering
4 degrees and instructional programs above the high school
5 level either in residence or by correspondence. The Board of
6 Higher Education and the Commission, in consultation with the
7 State Board of Education, shall identify qualified
8 institutions to supply the demand for bilingual special
9 education teachers and bilingual school service personnel.
10 "Areas of identified staff shortages" means courses of
11 study in which the number of teachers is insufficient to meet
12 student or school district demand for such instruction as
13 determined by the State Board of Education.
14 (Source: P.A. 88-228; 89-4, eff. 1-1-96.)
15 Section 99-65. The Bingo License and Tax Act is amended
16 by changing Section 3 as follows:
17 (230 ILCS 25/3) (from Ch. 120, par. 1103)
18 Sec. 3. Report. There shall be delivered paid to the
19 Department of Revenue, 5% of the gross proceeds of any game
20 of bingo conducted under the provision of this Act. Such
21 payments shall be made 4 times per year, between the first
22 and the 20th day of April, July, October, and January.
23 Payment must be by money order or certified check.
24 Accompanying each payment shall be a report, on forms
25 provided by the Department of Revenue, listing the number of
26 games conducted, the gross income derived and such other
27 information as the Department of Revenue may require.
28 Failure to submit either the payment or the report within the
29 specified time may result in suspension or revocation of the
30 license.
31 The provisions of Section 2a of the Retailers' Occupation
32 Tax Act pertaining to the furnishing of a bond or other
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1 security are incorporated by reference into this Act and are
2 applicable to licensees under this Act as a precondition of
3 obtaining a license under this Act. The Department shall
4 establish by rule the standards and criteria it will use in
5 determining whether to require the furnishing of a bond or
6 other security, the amount of such bond or other security,
7 whether to require the furnishing of an additional bond or
8 other security by a licensee, and the amount of such
9 additional bond or other security. Such standards and
10 criteria may include payment history, general financial
11 condition or other factors which may pose risks to insuring
12 the payment to the Department of Revenue, of applicable
13 taxes. Such rulemaking is subject to the provisions of the
14 Illinois Administrative Procedure Act. The provisions of
15 Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
16 6c, 8, 9, 10, 11 and 12 of the Retailers' Occupation Tax Act
17 which are not inconsistent with this Act, and Section 3-7 of
18 the Uniform Penalty and Interest Act shall apply, as far as
19 practicable, to the subject matter of this Act to the same
20 extent as if such provisions were included in this Act. Tax
21 returns filed pursuant to this Act shall not be confidential
22 and shall be available for public inspection. For the
23 purposes of this Act, references in such incorporated
24 Sections of the Retailers' Occupation Tax Act to retailers,
25 sellers or persons engaged in the business of selling
26 tangible personal property means persons engaged in
27 conducting bingo games, and references in such incorporated
28 Sections of the Retailers' Occupation Tax Act to sales of
29 tangible personal property mean the conducting of bingo games
30 and the making of charges for playing such games.
31 One-half of all of the sums collected under this Section
32 shall be deposited into the Mental Health Fund and 1/2 of all
33 of the sums collected under this Section shall be deposited
34 in the Common School Fund.
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1 (Source: P.A. 87-205; 87-895.)
2 Section 99-70. The Housing Authorities Act is amended by
3 adding Section 8.24 as follows:
4 (310 ILCS 10/8.24 new)
5 Sec. 8.24. Tax credit for donation to sponsors.
6 (a) In this Act:
7 "Affordable housing project" means either (i) a rental
8 project in which at least 25% of the units have rents
9 (including tenant-paid heat) that do not exceed, on a monthly
10 basis, 30% of the gross monthly income of a household earning
11 60% of the area median income and at least 25% of the units
12 are occupied by persons and families whose incomes do not
13 exceed 60% of the median family income for the geographic
14 area in which the residential unit is located or (ii) a unit
15 for sale to homebuyers whose gross household income is at or
16 below 60% of the area median income and who pay no more than
17 30% of their gross household income for mortgage principal,
18 interest, property taxes, and property insurance (PITI).
19 "Donation" means money, securities, or real or personal
20 property that is donated to a not-for-profit sponsor that is
21 used solely for costs associated with either (i) purchasing,
22 constructing, or rehabilitating an affordable housing project
23 in this State, (ii) an employer-assisted housing project in
24 this State, (iii) general operating support, or (iv)
25 technical assistance as defined by this Section.
26 "Sponsor" means a not-for-profit organization that (i) is
27 organized under the General Not For Profit Corporation Act of
28 1986 for the purpose of constructing or rehabilitating
29 affordable housing units in this State; (ii) is organized for
30 the purpose of constructing or rehabilitating affordable
31 housing units and has been issued a ruling from the Internal
32 Revenue Service of the United States Department of the
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1 Treasury that the organization is exempt from income taxation
2 under provisions of the Internal Revenue Code; or (iii) is an
3 organization designated as a community development
4 corporation by the United States government under Title VII
5 of the Economic Opportunity Act of 1964.
6 "Employer-assisted housing project" means either
7 down-payment assistance, reduced-interest mortgages, mortgage
8 guarantee programs, rental subsidies, or individual
9 development account savings plans that are provided by
10 employers to employees to assist in securing affordable
11 housing near the work place, that are restricted to housing
12 near the work place, and that are restricted to employees
13 whose gross household income is at or below 120% of the area
14 median income.
15 "General operating support" means any cost incurred by a
16 sponsor that is a part of its general program costs and is
17 not limited to costs directly incurred by the affordable
18 housing project.
19 "Geographical area" means the metropolitan area or county
20 designated as an area by the federal Department of Housing
21 and Urban Development under Section 8 of the United States
22 Housing Act of 1937, as amended, for purposes of determining
23 fair market rental rates.
24 "Housing authority" means either the Illinois Housing
25 Development Authority or the Department of Housing of the
26 City of Chicago.
27 "Median income" means the incomes that are determined by
28 the federal Department of Housing and Urban Development
29 guidelines and adjusted for family size.
30 "Technical assistance" means any cost incurred by a
31 sponsor for project planning, assistance with applying for
32 financing, or counseling services provided to prospective
33 homebuyers.
34 (b) A sponsor must apply to the housing authority that
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1 administers the program for approval of the project. The
2 housing authority must reserve a specific amount of tax
3 credits for each approved affordable housing project for 24
4 months after the date of approval. The sponsor must receive
5 an eligible donation within that 24-month time period or
6 donations to the project made after the end of the 24-month
7 period are not eligible for the tax credit allowed under
8 Section 214 of the Illinois Income Tax Act.
9 (c) The Illinois Housing Development Authority must
10 adopt rules establishing criteria for eligible costs and
11 donations, issuing and verifying tax credits, and selecting
12 affordable housing projects that are eligible for a tax
13 credit under Section 214 of the Illinois Income Tax Act.
14 (d) Tax credits for employer-assisted housing are
15 limited to that pool of tax credits that have been set aside
16 for employer-assisted housing. Tax credits for general
17 operating support are limited to 10% of the total tax credit
18 allocation for a project and are also limited to that pool of
19 tax credits that have been set aside for general operating
20 support. Tax credits for technical assistance are limited to
21 that pool of tax credits that have been set aside for
22 technical assistance.
23 (e) The amount of tax credits reserved by the housing
24 authority for an approved project is limited to $13 million
25 in the initial year and shall increase each year by 5%. The
26 City of Chicago shall receive 24.5% of total tax credits
27 authorized for each fiscal year. The Illinois Housing
28 Development Authority shall receive the balance of the tax
29 credits authorized for each fiscal year. The tax credits may
30 be used anywhere in the State. The tax credits have the
31 following set-asides:
32 (1) for employer-assisted housing, $2 million; and
33 (2) for general operating support and technical
34 assistance, $1 million.
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1 The balance of the funds must be used for projects that
2 would otherwise meet the definition of affordable housing.
3 (f) The housing authority that issues the credit must
4 record against the land upon which the project is located an
5 instrument to assure that the property maintains its
6 affordable housing compliance for a minimum of 10 years. The
7 housing authority has flexibility to assure that the
8 instrument does not cause undue hardship on homeowners.
9 Section 99-72. The Senior Citizens and Disabled Persons
10 Property Tax Relief and Pharmaceutical Assistance Act is
11 amended by changing the title and Sections 1, 2, and 4 as
12 follows:
13 (320 ILCS 25/Act title)
14 An Act in relation to the payment of grants to enable the
15 elderly, and the disabled, and lower income persons to
16 acquire or retain private housing and to enable the elderly
17 and the disabled to acquire prescription drugs.
18 (320 ILCS 25/1) (from Ch. 67 1/2, par. 401)
19 Sec. 1. Short title. This Article shall be known and may
20 be cited as the "Senior Citizens and Disabled Persons
21 Property Tax Relief and Pharmaceutical Assistance Act". As
22 used in this Article, "this Act" means this Article.
23 (Source: P.A. 83-1531.)
24 (320 ILCS 25/2) (from Ch. 67 1/2, par. 402)
25 Sec. 2. Purpose.
26 The purpose of this Act is to provide incentives to the
27 senior citizens, and disabled persons, and lower income
28 persons of this State to acquire and retain private housing
29 of their choice and at the same time to relieve those
30 citizens from the burdens of extraordinary property taxes
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1 against their increasingly restricted earning power, and
2 thereby to reduce the requirements for public housing in this
3 State.
4 (Source: P.A. 77-2059.)
5 (320 ILCS 25/4) (from Ch. 67 1/2, par. 404)
6 Sec. 4. Amount of Grant.
7 (a) In general. Any individual 65 years or older or any
8 individual who will become 65 years old during the calendar
9 year in which a claim is filed, and any surviving spouse of
10 such a claimant, who at the time of death received or was
11 entitled to receive a grant pursuant to this Section, which
12 surviving spouse will become 65 years of age within the 24
13 months immediately following the death of such claimant and
14 which surviving spouse but for his or her age is otherwise
15 qualified to receive a grant pursuant to this Section, and
16 any disabled person whose annual household income is less
17 than $14,000 for grant years before the 1998 grant year, less
18 than $16,000 for the 1998 and 1999 grant years, and less than
19 (i) $21,218 for a household containing one person, (ii)
20 $28,480 for a household containing 2 persons, or (iii)
21 $35,740 for a household containing 3 or more persons for the
22 2000 grant year and thereafter and whose household is liable
23 for payment of property taxes accrued or has paid rent
24 constituting property taxes accrued and is domiciled in this
25 State at the time he files his claim is entitled to claim a
26 grant under this Act. Every January 20, the annual household
27 income limit established in this subsection (a) shall
28 automatically be increased or decreased, as applicable, by a
29 percentage equal to the percentage change in the consumer
30 price index-u during the preceding 12-month calendar year.
31 "Consumer price index-u" means the index published by the
32 Bureau of Labor Statistics of the United States Department of
33 Labor that measures the average change in prices of goods and
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1 services purchased by all urban consumers, United States city
2 average, all items, 1982-84 = 100. The new amount resulting
3 from each annual adjustment shall be determined by the
4 Comptroller and made available to the Department. With
5 respect to claims filed by individuals who will become 65
6 years old during the calendar year in which a claim is filed,
7 the amount of any grant to which that household is entitled
8 shall be an amount equal to 1/12 of the amount to which the
9 claimant would otherwise be entitled as provided in this
10 Section, multiplied by the number of months in which the
11 claimant was 65 in the calendar year in which the claim is
12 filed.
13 (b) Limitation. Except as otherwise provided in
14 subsections (a) and (f) of this Section, the maximum amount
15 of grant which a claimant is entitled to claim is the amount
16 by which the property taxes accrued which were paid or
17 payable during the last preceding tax year or rent
18 constituting property taxes accrued upon the claimant's
19 residence for the last preceding taxable year exceeds 3 1/2%
20 of the claimant's household income for that year but in no
21 event is the grant to exceed (i) $900 $700 less 4.5% of
22 household income for that year for those with a household
23 income of $18,000 $14,000 or less or (ii) $90 $70 if
24 household income for that year is more than $18,000 $14,000.
25 (c) Public aid recipients. If household income in one
26 or more months during a year includes cash assistance in
27 excess of $55 per month from the Department of Public Aid or
28 the Department of Human Services (acting as successor to the
29 Department of Public Aid under the Department of Human
30 Services Act) which was determined under regulations of that
31 Department on a measure of need that included an allowance
32 for actual rent or property taxes paid by the recipient of
33 that assistance, the amount of grant to which that household
34 is entitled, except as otherwise provided in subsection (a),
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1 shall be the product of (1) the maximum amount computed as
2 specified in subsection (b) of this Section and (2) the ratio
3 of the number of months in which household income did not
4 include such cash assistance over $55 to the number twelve.
5 If household income did not include such cash assistance over
6 $55 for any months during the year, the amount of the grant
7 to which the household is entitled shall be the maximum
8 amount computed as specified in subsection (b) of this
9 Section. For purposes of this paragraph (c), "cash
10 assistance" does not include any amount received under the
11 federal Supplemental Security Income (SSI) program.
12 (d) Joint ownership. If title to the residence is held
13 jointly by the claimant with a person who is not a member of
14 his household, the amount of property taxes accrued used in
15 computing the amount of grant to which he is entitled shall
16 be the same percentage of property taxes accrued as is the
17 percentage of ownership held by the claimant in the
18 residence.
19 (e) More than one residence. If a claimant has occupied
20 more than one residence in the taxable year, he may claim
21 only one residence for any part of a month. In the case of
22 property taxes accrued, he shall pro rate 1/12 of the total
23 property taxes accrued on his residence to each month that he
24 owned and occupied that residence; and, in the case of rent
25 constituting property taxes accrued, shall pro rate each
26 month's rent payments to the residence actually occupied
27 during that month.
28 (f) There is hereby established a program of
29 pharmaceutical assistance to the aged and disabled which
30 shall be administered by the Department in accordance with
31 this Act, to consist of payments to authorized pharmacies, on
32 behalf of beneficiaries of the program, for the reasonable
33 costs of covered prescription drugs. Each beneficiary who
34 pays $5 for an identification card shall pay no additional
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1 prescription costs. Each beneficiary who pays $25 for an
2 identification card shall pay $3 per prescription. In
3 addition, after a beneficiary receives $2,000 in benefits
4 during a State fiscal year, that beneficiary shall also be
5 charged 20% of the cost of each prescription for which
6 payments are made by the program during the remainder of the
7 fiscal year. To become a beneficiary under this program a
8 person must be: (1) (i) 65 years or older, or (ii) the
9 surviving spouse of such a claimant, who at the time of death
10 received or was entitled to receive benefits pursuant to this
11 subsection, which surviving spouse will become 65 years of
12 age within the 24 months immediately following the death of
13 such claimant and which surviving spouse but for his or her
14 age is otherwise qualified to receive benefits pursuant to
15 this subsection, or (iii) disabled, and (2) is domiciled in
16 this State at the time he files his or her claim, and (3) has
17 a maximum household income of less than $14,000 for grant
18 years before the 1998 grant year, less than $16,000 for the
19 1998 and 1999 grant years, and less than (i) $21,218 for a
20 household containing one person, (ii) $28,480 for a household
21 containing 2 persons, or (iii) $35,740 for a household
22 containing 3 more persons for the 2000 grant year and
23 thereafter. In addition, each eligible person must (1) obtain
24 an identification card from the Department, (2) at the time
25 the card is obtained, sign a statement assigning to the State
26 of Illinois benefits which may be otherwise claimed under any
27 private insurance plans, (3) present the identification card
28 to the dispensing pharmacist.
29 Whenever a generic equivalent for a covered prescription
30 drug is available, the Department shall reimburse only for
31 the reasonable costs of the generic equivalent, less the
32 co-pay established in this Section, unless (i) the covered
33 prescription drug contains one or more ingredients defined as
34 a narrow therapeutic index drug at 21 CFR 320.33, (ii) the
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1 prescriber indicates on the face of the prescription "brand
2 medically necessary", and (iii) the prescriber specifies that
3 a substitution is not permitted. When issuing an oral
4 prescription for covered prescription medication described in
5 item (i) of this paragraph, the prescriber shall stipulate
6 "brand medically necessary" and that a substitution is not
7 permitted. If the covered prescription drug and its
8 authorizing prescription do not meet the criteria listed
9 above, the beneficiary may purchase the non-generic
10 equivalent of the covered prescription drug by paying the
11 difference between the generic cost and the non-generic cost
12 plus the beneficiary co-pay.
13 Any person otherwise eligible for pharmaceutical
14 assistance under this Act whose covered drugs are covered by
15 any public program for assistance in purchasing any covered
16 prescription drugs shall be ineligible for assistance under
17 this Act to the extent such costs are covered by such other
18 plan.
19 The fee to be charged by the Department for the
20 identification card shall be equal to $5 for persons below
21 the official poverty line as defined by the United States
22 Department of Health and Human Services and $25 for all other
23 persons.
24 In the event that 2 or more persons are eligible for any
25 benefit under this Act, and are members of the same
26 household, (1) each such person shall be entitled to
27 participate in the pharmaceutical assistance program,
28 provided that he or she meets all other requirements imposed
29 by this subsection and (2) each participating household
30 member contributes the fee required for that person by the
31 preceding paragraph for the purpose of obtaining an
32 identification card.
33 (Source: P.A. 90-650, eff. 7-27-98; 91-357, eff. 7-29-99;
34 91-699, eff. 1-1-01.)
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1 Section 99-75. The Environmental Protection Act is
2 amended by changing Section 58.14 and adding Section 58.13a
3 as follows:
4 (415 ILCS 5/58.13a new)
5 Sec. 58.13a. Distressed Communities and Industries Grant
6 Fund.
7 (a) The Director of Commerce and Community Affairs,
8 subject to other applicable provisions of this Title XVII,
9 may issue a grant to any entity for the purpose of paying the
10 allowable costs needed to cause an eligible project to occur,
11 including, but not limited to, demolition, remediation, site
12 preparation remediation, or site investigation costs, subject
13 to the following conditions:
14 (1) The project otherwise qualifies as an eligible
15 project in accordance with Section 58.14 and is
16 economically sound.
17 (2) Twenty-five percent of all grant funds will be
18 made available to counties with populations over
19 2,000,000 and the remaining grant funds will be disbursed
20 throughout the State.
21 (3) The proposed recipient of the grant given under
22 this Section is unable to finance the entire cost of the
23 project through ordinary financial channels.
24 (4) When completed, the eligible project is
25 projected to involve an investment of at least an amount
26 (to be expressly specified by the Department) in capital
27 improvements to be placed in service and will employ at
28 least an amount (to be expressly specified by the
29 Department) of new employees within the State, provided
30 that the Department has determined that the project will
31 provide a substantial economic benefit to the State.
32 This projection shall be made by the proposed recipient
33 and confirmed by the Department of Commerce and Community
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1 Affairs.
2 (5) The amount to be issued in a grant shall not
3 exceed $1,000,000 or 100% of the allowable cost,
4 whichever is less. In no event, however, may the total
5 financial assistance provided under this Section, Section
6 58.14, and Section 201 of the Illinois Income Tax Act
7 exceed the allowable cost.
8 (6) Priority for grants issued under this Section
9 shall be given to areas with high levels of poverty,
10 where the unemployment rate exceeds the State average,
11 where an enterprise zone exists, or where the area is
12 otherwise economically depressed as determined by the
13 Department of Commerce and Community Affairs.
14 (b) The determinations of the Department of Commerce and
15 Community Affairs under this Section shall be conclusive for
16 purposes of the validity of a grant agreement signed by the
17 Director of Commerce and Community Affairs.
18 (c) Grants issued under this Section shall be such as
19 the Department of Commerce and Community Affairs determines
20 to be appropriate and in furtherance of the purpose for which
21 the grants are made. The moneys used in making the grants
22 shall be disbursed from the Distressed Communities and
23 Industries Grant Fund upon written order of the Department of
24 Commerce and Community Affairs.
25 (d) The grants issued under this Section shall be used
26 for the purposes approved by the Department of Commerce and
27 Community Affairs. In no event, however, shall the grant
28 money be used to hire or pay additional employees of the
29 grant recipient.
30 (e) The Department of Commerce and Community Affairs may
31 fix service charges for the making of a grant to offset its
32 costs of administering the program and processing grant
33 applications. The charges shall be payable at such time and
34 place and in such amounts and manner as may be prescribed by
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1 the Department.
2 (f) In the exercise of the sound discretion of the
3 Department of Commerce and Community Affairs, the grant
4 described in this Section may be terminated, suspended, or
5 revoked if the grant recipient fails to continue to meet the
6 conditions set forth in this Section. In making such a
7 determination, the Department of Commerce and Community
8 Affairs shall consider the severity of the condition
9 violation, actions taken to correct the violation, the
10 frequency of any condition violations, and whether the
11 actions exhibit a pattern of conduct by the recipient. The
12 Department shall also consider changes in general economic
13 conditions affecting the project. The Department shall
14 notify the Director of the Agency of the suspension or
15 revocation of the grant. In the event the grant recipient
16 fails to repay the grant, the Department of Commerce and
17 Community Affairs shall refer the matter to the Attorney
18 General to institute collection proceedings as appropriate.
19 In any event, however, the Department of Commerce and
20 Community Affairs may immediately file a lien on the property
21 that is the subject of the grant in accordance with
22 applicable law.
23 (g) There is hereby created in the State treasury a
24 special fund to be known as the Distressed Communities and
25 Industries Grant Fund. The Fund is intended to provide
26 $10,000,000 annually in uncommitted funds for grants that are
27 to be made under this Section. The Fund shall consist of all
28 moneys that may be appropriated to it by the General
29 Assembly, any gifts, contributions, grants, or bequests
30 received from federal, private, or other sources, and moneys
31 from the repayment of any grants terminated, suspended, or
32 revoked under this Section. Subsections (b) and (c) of
33 Section 5 of the State Finance Act do not apply to the
34 Distressed Communities and Industries Grant Fund.
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1 (A) At least annually, the State Treasurer shall
2 certify the amount deposited into the Fund to the
3 Department of Commerce and Community Affairs.
4 (B) Any portion of the Fund not immediately needed
5 for the purposes authorized shall be invested by the
6 State Treasurer as provided by the constitution and laws
7 of this State. All income from the investments shall be
8 credited to the Fund.
9 (h) Within 6 months after the effective date of this
10 amendatory Act of the 92nd General Assembly, the Agency and
11 the Department of Commerce and Community Affairs shall
12 propose rules prescribing procedures and standards for the
13 administration of this Section.
14 (415 ILCS 5/58.14)
15 Sec. 58.14. Environmental Remediation Tax Credit review.
16 (a) Prior to applying for the Environmental Remediation
17 Tax Credit under Section 201 of the Illinois Income Tax Act,
18 Remediation Applicants shall first submit to the Agency an
19 application for review of remediation costs. The application
20 and review process shall be conducted in accordance with the
21 requirements of this Section and the rules adopted under
22 subsection (g). A preliminary review of the estimated
23 remediation costs for development and implementation of the
24 Remedial Action Plan may be obtained in accordance with
25 subsection (d).
26 (b) No application for review shall be submitted until a
27 No Further Remediation Letter has been issued by the Agency
28 and recorded in the chain of title for the site in accordance
29 with Section 58.10. The Agency shall review the application
30 to determine whether the costs submitted are remediation
31 costs, and whether the costs incurred are reasonable. The
32 application shall be on forms prescribed and provided by the
33 Agency. At a minimum, the application shall include the
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1 following:
2 (1) information identifying the Remediation
3 Applicant and the site for which the tax credit is being
4 sought and the date of acceptance of the site into the
5 Site Remediation Program;
6 (2) a determination by the Department of Commerce
7 and Community Affairs that remediation of the site for
8 which the credit is being sought will result in a net
9 economic benefit to the State of Illinois. "Net economic
10 benefit" shall be determined based on factors such as the
11 number of jobs created, the number of jobs retained if it
12 is demonstrated the jobs would otherwise be lost, capital
13 investment, capital improvements, the number of
14 construction-related jobs, increased sales, material
15 purchases, other increases in service and operational
16 expenditures, and other factors established by the
17 Department of Commerce and Community Affairs. Priority
18 shall be given to sites located in areas with high levels
19 of poverty, where the unemployment rate exceeds the State
20 average, where an enterprise zone exists, or where the
21 area is otherwise economically depressed as determined by
22 the Department of Commerce and Community Affairs a copy
23 of the No Further Remediation Letter with official
24 verification that the letter has been recorded in the
25 chain of title for the site and a demonstration that the
26 site for which the application is submitted is the same
27 site as the one for which the No Further Remediation
28 Letter is issued;
29 (3) a demonstration that the release of the
30 regulated substances of concern that is being remediated
31 under the Site Remediation Program was for which the No
32 Further Remediation Letter was issued were not caused or
33 contributed to in any material respect by the Remediation
34 Applicant. After the Pollution Control Board rules are
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1 adopted pursuant to the Illinois Administrative Procedure
2 Act for the administration and enforcement of Section
3 58.9 of the Environmental Protection Act, determinations
4 as to credit availability shall be made consistent with
5 those rules;
6 (4) an itemization and documentation, including
7 receipts, of the remediation costs incurred;
8 (5) a demonstration that the costs incurred are
9 remediation costs as defined in this Act and its rules;
10 (6) a demonstration that the costs submitted for
11 review were incurred by the Remediation Applicant who
12 received the No Further Remediation Letter;
13 (7) an application fee in the amount set forth in
14 subsection (e) for each site for which review of
15 remediation costs is requested and, if applicable,
16 certification from the Department of Commerce and
17 Community Affairs that the site is located in an
18 enterprise zone; and
19 (8) any other information deemed appropriate by the
20 Agency.
21 (c) Within 60 days after receipt by the Agency of an
22 application meeting the requirements of subsection (b), the
23 Agency shall issue a letter to the applicant approving,
24 disapproving, or modifying the remediation costs submitted in
25 the application. If the remediation costs are approved as
26 submitted, the Agency's letter shall state the amount of the
27 remediation costs to be applied toward the Environmental
28 Remediation Tax Credit. If an application is disapproved or
29 approved with modification of remediation costs, the Agency's
30 letter shall set forth the reasons for the disapproval or
31 modification and state the amount of the remediation costs,
32 if any, to be applied toward the Environmental Remediation
33 Tax Credit.
34 If a preliminary review of a budget plan has been
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1 obtained under subsection (d), the Remediation Applicant may
2 submit, with the application and supporting documentation
3 under subsection (b), a copy of the Agency's final
4 determination accompanied by a certification that the actual
5 remediation costs incurred for the development and
6 implementation of the Remedial Action Plan are equal to or
7 less than the costs approved in the Agency's final
8 determination on the budget plan. The certification shall be
9 signed by the Remediation Applicant and notarized. Based on
10 that submission, the Agency shall not be required to conduct
11 further review of the costs incurred for development and
12 implementation of the Remedial Action Plan and may approve
13 costs as submitted.
14 Within 35 days after receipt of an Agency letter
15 disapproving or modifying an application for approval of
16 remediation costs, the Remediation Applicant may appeal the
17 Agency's decision to the Board in the manner provided for the
18 review of permits in Section 40 of this Act.
19 (d) (1) A Remediation Applicant may obtain a preliminary
20 review of estimated remediation costs for the development
21 and implementation of the Remedial Action Plan by
22 submitting a budget plan along with the Remedial Action
23 Plan. The budget plan shall be set forth on forms
24 prescribed and provided by the Agency and shall include
25 but shall not be limited to line item estimates of the
26 costs associated with each line item (such as personnel,
27 equipment, and materials) that the Remediation Applicant
28 anticipates will be incurred for the development and
29 implementation of the Remedial Action Plan. The Agency
30 shall review the budget plan along with the Remedial
31 Action Plan to determine whether the estimated costs
32 submitted are remediation costs and whether the costs
33 estimated for the activities are reasonable.
34 (2) If the Remedial Action Plan is amended by the
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1 Remediation Applicant or as a result of Agency action,
2 the corresponding budget plan shall be revised
3 accordingly and resubmitted for Agency review.
4 (3) The budget plan shall be accompanied by the
5 applicable fee as set forth in subsection (e).
6 (4) Submittal of a budget plan shall be deemed an
7 automatic 60-day waiver of the Remedial Action Plan
8 review deadlines set forth in this Section and its rules.
9 (5) Within the applicable period of review, the
10 Agency shall issue a letter to the Remediation Applicant
11 approving, disapproving, or modifying the estimated
12 remediation costs submitted in the budget plan. If a
13 budget plan is disapproved or approved with modification
14 of estimated remediation costs, the Agency's letter shall
15 set forth the reasons for the disapproval or
16 modification.
17 (6) Within 35 days after receipt of an Agency
18 letter disapproving or modifying a budget plan, the
19 Remediation Applicant may appeal the Agency's decision to
20 the Board in the manner provided for the review of
21 permits in Section 40 of this Act.
22 (e) The fees for reviews conducted under this Section
23 are in addition to any other fees or payments for Agency
24 services rendered pursuant to the Site Remediation Program
25 and shall be as follows:
26 (1) The fee for an application for review of
27 remediation costs shall be $1,000 for each site reviewed.
28 (2) The fee for the review of the budget plan
29 submitted under subsection (d) shall be $500 for each
30 site reviewed.
31 (3) In the case of a Remediation Applicant
32 submitting for review total remediation costs of $100,000
33 or less for a site located within an enterprise zone (as
34 set forth in paragraph (i) of subsection (l) of Section
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1 201 of the Illinois Income Tax Act), the fee for an
2 application for review of remediation costs shall be $250
3 for each site reviewed. For those sites, there shall be
4 no fee for review of a budget plan under subsection (d).
5 The application fee shall be made payable to the State of
6 Illinois, for deposit into the Hazardous Waste Fund.
7 Pursuant to appropriation, the Agency shall use the fees
8 collected under this subsection for development and
9 administration of the review program.
10 (f) The Agency shall have the authority to enter into
11 any contracts or agreements that may be necessary to carry
12 out its duties and responsibilities under this Section.
13 (f-5) The Agency may immediately file a lien on the
14 property that is the subject of the tax credit in accordance
15 with applicable law if the recipient of the tax credit fails
16 to continue to meet the conditions set forth in this Section.
17 In making such a determination, the Agency shall consider the
18 severity of the condition violation, actions taken to correct
19 the violation, the frequency of any condition violations, and
20 whether the actions exhibit a pattern of conduct by the
21 recipient. The Director of the Agency shall provide notice
22 to the recipient of alleged noncompliance and allow the
23 recipient a hearing under the provisions of the Illinois
24 Administrative Procedure Act. If, after such notice and any
25 hearing, the Agency determines that a noncompliance exists,
26 the Director of the Agency shall notify the Director of
27 Commerce and Community Affairs and the Director of Revenue of
28 the suspension or revocation of the tax credit.
29 (f-10) For eligible projects, the Director of Commerce
30 and Community Affairs, with notice to the Directors of the
31 Agency and Revenue, and subject to the other provisions of
32 Section 201 of the Illinois Income Tax Act and this Section,
33 may not create a new enterprise zone but may decide that a
34 prospective operator of a facility being remedied and
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1 renovated under this Section may receive the tax credits and
2 exemptions under the Economic Development for a Growing
3 Economy Tax Credit Act and the Illinois Enterprise Zone Act.
4 The tax credits allowed under this subsection (f-10) shall be
5 used to offset the tax imposed by subsections (a) and (b) of
6 Section 201 of the Illinois Income Tax Act. For purposes of
7 this subsection (f-10):
8 (1) For receipt of the tax credit for new or
9 expanded business facilities under the Economic
10 Development for a Growing Economy Tax Credit Act and the
11 Illinois Enterprise Zone Act, the eligible project must
12 create at least 10 new jobs or retain businesses that
13 supply at least 25 existing jobs, or a combination
14 thereof. For purposes of this Section, the financial
15 incentives described in the Economic Development for a
16 Growing Economy Tax Credit Act are modified only as
17 follows: the tax credit shall be $400 per employee per
18 year, an additional $400 per year for each employee
19 exceeding the minimum employment thresholds of 10 and 25
20 jobs for new and existing businesses, respectively, and
21 an additional $400 per year for each person who is
22 unemployed for at least 3 months immediately prior to
23 being employed at the new business facility.
24 (g) Within 6 months after the effective date of this
25 amendatory Act of 1997, the Agency shall propose rules
26 prescribing procedures and standards for its administration
27 of this Section. Within 6 months after receipt of the
28 Agency's proposed rules, the Board shall adopt on second
29 notice, pursuant to Sections 27 and 28 of this Act and the
30 Illinois Administrative Procedure Act, rules that are
31 consistent with this Section. Prior to the effective date of
32 rules adopted under this Section, the Agency may conduct
33 reviews of applications under this Section and the Agency is
34 further authorized to distribute guidance documents on costs
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1 that are eligible or ineligible as remediation costs.
2 (h) Within 6 months after the effective date of this
3 amendatory Act of the 92nd General Assembly, the Agency and
4 the Department of Commerce and Community Affairs shall
5 propose rules prescribing procedures and standards for the
6 administration of this Section as changed by this amendatory
7 Act of the 92nd General Assembly.
8 (i) The changes relating to taxes made to this Section
9 by this amendatory Act of the 92nd General Assembly apply to
10 taxable years ending on or after December 31, 2001.
11 (Source: P.A. 90-123, eff. 7-21-97; 90-792, eff. 1-1-99.)
12 Section 99-80. The Alternate Fuels Act is amended by
13 changing Sections 25, 30, 35, 40, and 45 and adding Sections
14 21, 31, and 32 as follows:
15 (415 ILCS 120/21 new)
16 Sec. 21. Alternate Fuel Infrastructure Advisory Board.
17 The Governor shall appoint an Alternate Fuel Infrastructure
18 Advisory Board. The Advisory Board shall be chaired by the
19 Director. Other members appointed by the Governor shall
20 consist of one representative from the ethanol industry, one
21 representative from the natural gas industry, one
22 representative from the auto manufacturing industry, one
23 representative from the liquid petroleum gas industry, one
24 representative from the Department of Commerce and Community
25 Affairs, one representative from the heavy duty engine
26 manufacturing industry, one representative from Illinois
27 private fleet operators, and one representative of local
28 government from the Chicago nonattainment area.
29 The Advisory Board shall (1) prepare and recommend to the
30 Agency rules implementing Section 31 of this Act; (2)
31 determine criteria and procedures to be followed in awarding
32 grants and review applications for grants under the Alternate
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1 Fuel Infrastructure Program; and (3) make recommendations to
2 the Agency as to the award of grants under the Alternate Fuel
3 Infrastructure Program.
4 Members of the Advisory Board shall not be reimbursed
5 their costs and expenses of participation. All decisions of
6 the Advisory Board shall be decided on a one vote per member
7 basis with a majority of the Advisory Board membership to
8 rule.
9 (415 ILCS 120/25)
10 Sec. 25. Ethanol fuel research program. The Department
11 of Commerce and Community Affairs shall administer a research
12 program to reduce the costs of producing ethanol fuels and
13 increase the viability of ethanol fuels, new ethanol engine
14 technologies, and ethanol refueling infrastructure. This
15 research shall be funded from the Alternate Fuels Fund. The
16 research program shall remain in effect until December 31,
17 2003 2002, or until funds are no longer available.
18 (Source: P.A. 90-726, eff. 8-7-98; 90-797, eff. 12-15-98;
19 91-357, eff. 7-29-99.)
20 (415 ILCS 120/30)
21 Sec. 30. Rebate program. Beginning January 1, 1997,
22 each owner of an alternate fuel vehicle shall be eligible to
23 apply for a rebate. The Agency shall cause rebates to be
24 issued under the provisions of this Act. The Alternate Fuels
25 Advisory Board shall develop and recommend to the Agency
26 rules that provide incentives or other measures to ensure
27 that small fleet operators and owners participate in, and
28 benefit from, the rebate program. Such rules shall define
29 and identify small fleet operators and owners in the covered
30 area and make provisions for the establishment of criteria to
31 ensure that funds from the Alternate Fuels Fund specified in
32 this Act are made readily available to these entities. The
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1 Advisory Board shall, in the development of its rebate
2 application review criteria, make provisions for preference
3 to be given to applications proposing a partnership between
4 the fleet operator or owner and a fueling service station to
5 make alternate fuels available to the public. An owner may
6 apply for only one of 3 types of rebates with regard to an
7 individual alternate fuel vehicle: (i) a conversion cost
8 rebate, (ii) an OEM differential cost rebate, or (iii) a
9 fuel cost differential rebate. Only one rebate may be issued
10 with regard to a particular alternate fuel vehicle during the
11 life of that vehicle. A rebate shall not exceed $4,000 per
12 vehicle. Over the life of this rebate program, an owner of
13 an alternate fuel vehicle may not receive rebates for more
14 than 150 vehicles per location or for 300 vehicles in total.
15 (a) A conversion cost rebate may be issued to an owner
16 or his or her designee in order to reduce the cost of
17 converting of a conventional vehicle to an alternate fuel
18 vehicle. Conversion of a conventional vehicle to alternate
19 fuel capability must take place in Illinois for the owner to
20 be eligible for the conversion cost rebate. Amounts spent by
21 applicants within a calendar year may be claimed on a rebate
22 application submitted during that calendar year. Approved
23 conversion cost rebates applied for during calendar years
24 1997, 1998, 1999, 2000, 2001, and 2002, 2003, and 2004 shall
25 be 80% of all approved conversion costs claimed and
26 documented. Approval of conversion cost rebates may continue
27 after calendar year 2004, if funds are still available. An
28 applicant may include on an application submitted in 1997 all
29 amounts spent within that calendar year on the conversion,
30 even if the expenditure occurred before promulgation of the
31 Agency rules.
32 (b) An OEM differential cost rebate may be issued to an
33 owner or his or her designee in order to reduce the cost
34 differential between a conventional vehicle or engine and the
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1 same vehicle or engine, produced by an original equipment
2 manufacturer, that has the capability to use alternate fuels.
3 A new OEM vehicle or engine must be purchased in Illinois
4 and must either be an alternate fuel vehicle or used in an
5 alternate fuel vehicle, respectively, for the owner to be
6 eligible for an OEM differential cost rebate. Amounts spent
7 by applicants within a calendar year may be claimed on a
8 rebate application submitted during that calendar year.
9 Approved OEM differential cost rebates applied for during
10 calendar years 1997, 1998, 1999, 2000, 2001, and 2002, 2003,
11 and 2004 shall be 80% of all approved cost differential
12 claimed and documented. Approval of OEM differential cost
13 rebates may continue after calendar year 2004, if funds are
14 still available. An applicant may include on an application
15 submitted in 1997 all amounts spent within that calendar
16 year on OEM equipment, even if the expenditure occurred
17 before promulgation of the Agency rules.
18 (c) A fuel cost differential rebate may be issued to an
19 owner or his or her designee in order to reduce the cost
20 differential between conventional fuels and domestic
21 renewable fuels purchased to operate an alternate fuel
22 vehicle that runs on domestic renewable fuel. The fuel cost
23 differential shall be based on a 3-year life cycle cost
24 analysis developed by the Agency by rulemaking. The rebate
25 shall apply to and be payable during a consecutive 3-year
26 period commencing on the date the application is approved by
27 the Agency. Approved fuel cost differential rebates may be
28 applied for during calendar years 1997, 1998, 1999, 2000, and
29 2001, and 2002 and approved rebates shall be 80% of the cost
30 differential for a consecutive 3-year period. Approval of
31 fuel cost differential rebates may continue after calendar
32 year 2002 if funds are still available. Twenty-five percent
33 of the amount appropriated under Section 40 to be used to
34 fund the programs authorized by this Section during calendar
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1 year 1998 shall be designated to fund fuel cost differential
2 rebates. If the total dollar amount of approved fuel cost
3 differential rebate applications as of October 1, 1998 is
4 less than the amount designated for that calendar year, the
5 balance of designated funds shall be immediately available to
6 fund any rebate authorized by this Section and approved in
7 the calendar year. An applicant may include on an
8 application submitted in 1997 all amounts spent within that
9 calendar year on fuel cost differential, even if the
10 expenditure occurred before the promulgation of the Agency
11 rules.
12 Twenty-five percent of the amount appropriated under
13 Section 40 to be used to fund the programs authorized by this
14 Section during calendar year 1999 shall be designated to fund
15 fuel cost differential rebates. If the total dollar amount
16 of approved fuel cost differential rebate applications as of
17 July 1, 1999 is less than the amount designated for that
18 calendar year, the balance of designated funds shall be
19 immediately available to fund any rebate authorized by this
20 Section and approved in the calendar year.
21 Twenty-five percent of the amount appropriated under
22 Section 40 to be used to fund programs authorized by this
23 Section during calendar year 2000 shall be designated to fund
24 fuel cost differential rebates. If the total dollar amount
25 of approved fuel cost differential rebate applications as of
26 July 1, 2000 is less than the amount designated for that
27 calendar year, the balance of designated funds shall be
28 immediately available to fund any rebate authorized by this
29 Section and approved in the calendar year.
30 Twenty-five percent of the amount that is appropriated
31 under Section 40 to be used to fund programs authorized by
32 this Section during calendar year 2001 shall be designated to
33 fund fuel cost differential rebates. If the total dollar
34 amount of approved fuel cost differential rebate applications
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1 as of July 1, 2001 is less than the amount designated for
2 that calendar year, the balance of designated funds shall be
3 immediately available to fund any rebate authorized by this
4 Section and approved in the calendar year.
5 Twenty-five percent of the amount that is appropriated
6 under Section 40 to be used to fund programs authorized by
7 this Section during calendar year 2002 shall be designated to
8 fund fuel cost differential rebates. If the total dollar
9 amount of approved fuel cost differential rebate applications
10 as of July 1, 2002 is less than the amount designated for
11 that calendar year, the balance of designated funds shall be
12 immediately available to fund any rebate authorized by this
13 Section and approved in the calendar year.
14 An approved fuel cost differential rebate shall be paid
15 to an owner in 3 annual installments on or about the
16 anniversary date of the approval of the application. Owners
17 receiving a fuel cost differential rebate shall be required
18 to demonstrate, through recordkeeping, the use of domestic
19 renewable fuels during the 3-year period commencing on the
20 date the application is approved by the Agency. If the
21 alternate fuel vehicle ceases to be registered to the
22 original applicant owner, a prorated installment shall be
23 paid to that owner or the owner's designee and the remainder
24 of the rebate shall be canceled.
25 (d) Vehicles owned by the federal government or vehicles
26 registered in a state outside Illinois are not eligible for
27 rebates.
28 (Source: P.A. 89-410; 90-726, eff. 8-7-98.)
29 (415 ILCS 120/31 new)
30 Sec. 31. Alternate Fuel Infrastructure Program. The
31 Environmental Protection Agency shall establish a grant
32 program to provide funding for the building of E85 blend,
33 propane, and compressed natural gas (CNG) fueling facilities,
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1 including private on-site fueling facilities, to be built
2 within the covered area or in Illinois metropolitan areas
3 over 100,000 in population. The Agency shall be responsible
4 for reviewing the proposals and awarding the grants. Under
5 the grant program, applicants may apply for up to 80% of the
6 total cost of the project. At least 20% of the total cost
7 of the project must be provided by the applicant in cash or
8 material. Subject to appropriation, the total amount of
9 grants under the program shall not exceed $6,000,000. For the
10 period beginning July 1, 2001 and ending June 30, 2004, the
11 available grant money shall be allocated as follows:
12 $2,000,000 for building ethanol fueling stations, $2,000,000
13 for building propane fueling stations, and $2,000,000 for
14 building CNG fueling stations. Any available grant money
15 remaining on July 1, 2004 may be used, until July 1, 2005, to
16 make grants for any of the 3 types of fueling stations.
17 (415 ILCS 120/32 new)
18 Sec. 32. Clean Fuel Education Program. The
19 Environmental Protection Agency, in cooperation with the
20 Department of Commerce and Community Affairs and Chicago Area
21 Clean Cities, shall administer the Clean Fuel Education
22 Program, the purpose of which is to educate fleet
23 administrators and Illinois' citizens about the benefits of
24 using alternate fuels. The program shall include a media
25 campaign. Subject to appropriation, $100,000 shall be
26 allocated to the Environmental Protection Agency in each of
27 fiscal years 2002 through 2006 to fund the program. The
28 Agency may use up to $20,000 annually for administrative
29 costs of the program.
30 (415 ILCS 120/35)
31 Sec. 35. User fees; transfer of funds.
32 (a) During fiscal years 1999, 2000, and 2001, and 2002
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1 the Office of the Secretary of State shall collect annual
2 user fees from any individual, partnership, association,
3 corporation, or agency of the United States government that
4 registers any combination of 10 or more of the following
5 types of motor vehicles in the Covered Area: (1) Vehicles
6 of the First Division, as defined in the Illinois Vehicle
7 Code; (2) Vehicles of the Second Division registered under
8 the B, D, F, H, MD, MF, MG, MH and MJ plate categories, as
9 defined in the Illinois Vehicle Code; and (3) Commuter vans
10 and livery vehicles as defined in the Illinois Vehicle Code.
11 This Section does not apply to vehicles registered under the
12 International Registration Plan under Section 3-402.1 of the
13 Illinois Vehicle Code. The user fee shall be $20 for each
14 vehicle registered in the Covered Area for each fiscal year.
15 The Office of the Secretary of State shall collect the $20
16 when a vehicle's registration fee is paid.
17 (b) Owners of State, county, and local government
18 vehicles, rental vehicles, antique vehicles, electric
19 vehicles, and motorcycles are exempt from paying the user
20 fees on such vehicles.
21 (c) The Office of the Secretary of State shall deposit
22 the user fees collected into the Alternate Fuels Fund.
23 (d) On July 1 of 2001 and 2002, the amount of $6,100,000
24 shall be transferred from the General Revenue Fund into the
25 Alternate Fuels Fund. On July 1, 2003, the amount of
26 $3,100,000 shall be transferred from the General Revenue Fund
27 into the Alternate Fuels Fund. On July 1 of 2004 and 2005,
28 the amount of $100,000 shall be transferred from the General
29 Revenue Fund into the Alternate Fuels Fund.
30 (Source: P.A. 89-410; 90-726, eff. 8-7-98.)
31 (415 ILCS 120/40)
32 Sec. 40. Appropriations from the Alternate Fuels Fund.
33 The Agency shall estimate the amount of user fees expected to
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1 be collected for fiscal years 1999, 2000, and 2001, and 2002.
2 Moneys shall be deposited into and distributed from the
3 Alternate Fuels Fund in the following manner:
4 (1) In each of fiscal years 1999, 2000, 2001, and 2002,
5 2003, and 2004 an amount not to exceed $200,000 may be
6 appropriated to the Agency from the Alternate Fuels Fund to
7 pay its costs of administering the programs authorized by
8 this Act. Additional appropriations to the Agency from the
9 Alternate Fuels Fund to pay its costs of administering the
10 programs authorized by this Act may be made in fiscal years
11 following 2004, not to exceed the amount of $200,000 in any
12 fiscal year, if funds are still available and program costs
13 are still being incurred. Up to $200,000 may be appropriated
14 to the Office of the Secretary of State in each of fiscal
15 years 1999, 2000, and 2001, and 2002 from the Alternate Fuels
16 Fund to pay the Secretary of State's costs of administering
17 the programs authorized under this Act.
18 (2) In fiscal year 1999, after appropriation of the
19 amounts authorized by paragraph (1), the remaining moneys
20 estimated to be collected during fiscal year 1999 shall be
21 appropriated as follows: 80% of each such remaining moneys
22 shall be appropriated to fund the programs authorized in
23 Section 30 and 20% shall be appropriated to fund the programs
24 authorized in Section 25.
25 (2.5) Beginning in fiscal year 2002, moneys from the
26 Fund may be used, subject to appropriation, for the purposes
27 of implementing Sections 31 and 32 of this Act, including
28 necessary administrative costs.
29 (3) In fiscal years 2000, 2001, and 2002, 2003, and 2004
30 after appropriation of the amounts authorized by paragraphs
31 paragraph (1) and (2.5), the remaining estimated amount of
32 moneys remaining in the Fund user fees expected to be
33 collected shall be appropriated as follows: 80% of such
34 estimated moneys shall be appropriated to fund the programs
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1 authorized in Section 30 and 20% shall be appropriated to
2 fund the programs authorized in Section 25.
3 (4) Moneys appropriated to fund the programs authorized
4 in Sections 25 and 30 shall be expended only after they have
5 been collected and deposited into the Alternate Fuels Fund.
6 (Source: P.A. 89-410; 90-726, eff. 8-7-98.)
7 (415 ILCS 120/45)
8 Sec. 45. Alternate Fuels Fund; creation; deposit of user
9 fees. A separate fund in the State Treasury called the
10 Alternate Fuels Fund is created, into which shall be
11 transferred the user fees as provided in Section 35 and any
12 other revenues, deposits, appropriations, or transfers as
13 provided by law.
14 (Source: P.A. 89-410.)
15 Section 99-90. The State Mandates Act is amended by
16 adding Section 8.25 as follows:
17 (30 ILCS 805/8.25 new)
18 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6
19 and 8 of this Act, no reimbursement by the State is required
20 for the implementation of any mandate created by this
21 amendatory Act of the 92nd General Assembly.
22 Section 99-99. Effective date. This Act takes effect
23 upon becoming law.".