100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3445

 

Introduced 2/16/2018, by Sen. Pamela J. Althoff

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Corporate Accountability for Tax Expenditures Act. Repeals a Section requiring the Department of Revenue to submit an annual Unified Economic Development Budget to the General Assembly. Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Makes changes concerning electronic payments. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that property purchased by a purchaser who is exempt from tax under federal law is exempt from the taxes under those Acts. Makes changes concerning rolling stock. Amends the State Finance Act, the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and numerous other Acts imposing local use and occupation taxes to include a reference to tangible personal property that is subject to the 1% rate under the Retailers' Occupation Tax Act and the Service Occupation Tax Act (currently, those items are specifically named). Amends the Motor Fuel Tax Law. Provides that certain waivers may be granted in case of a disaster in another jurisdiction (currently, another state). Amends the Illinois Horse Racing Act of 1975. Makes changes concerning the collection of the pari-mutuel tax. Makes other changes. Effective immediately.


LRB100 20331 HLH 35618 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3445LRB100 20331 HLH 35618 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Renewable Energy, Energy Efficiency, and
5Coal Resources Development Law of 1997 is amended by changing
6Section 6-5 and by adding Section 6-8 as follows:
 
7    (20 ILCS 687/6-5)
8    (Section scheduled to be repealed on December 31, 2020)
9    Sec. 6-5. Renewable Energy Resources and Coal Technology
10Development Assistance Charge.
11    (a) Notwithstanding the provisions of Section 16-111 of the
12Public Utilities Act but subject to subsection (e) of this
13Section, each public utility, electric cooperative, as defined
14in Section 3.4 of the Electric Supplier Act, and municipal
15utility, as referenced in Section 3-105 of the Public Utilities
16Act, that is engaged in the delivery of electricity or the
17distribution of natural gas within the State of Illinois shall,
18effective January 1, 1998, assess each of its customer accounts
19a monthly Renewable Energy Resources and Coal Technology
20Development Assistance Charge. The delivering public utility,
21municipal electric or gas utility, or electric or gas
22cooperative for a self-assessing purchaser remains subject to
23the collection of the fee imposed by this Section. The monthly

 

 

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1charge shall be as follows:
2        (1) $0.05 per month on each account for residential
3    electric service as defined in Section 13 of the Energy
4    Assistance Act;
5        (2) $0.05 per month on each account for residential gas
6    service as defined in Section 13 of the Energy Assistance
7    Act;
8        (3) $0.50 per month on each account for nonresidential
9    electric service, as defined in Section 13 of the Energy
10    Assistance Act, which had less than 10 megawatts of peak
11    demand during the previous calendar year;
12        (4) $0.50 per month on each account for nonresidential
13    gas service, as defined in Section 13 of the Energy
14    Assistance Act, which had distributed to it less than
15    4,000,000 therms of gas during the previous calendar year;
16        (5) $37.50 per month on each account for nonresidential
17    electric service, as defined in Section 13 of the Energy
18    Assistance Act, which had 10 megawatts or greater of peak
19    demand during the previous calendar year; and
20        (6) $37.50 per month on each account for nonresidential
21    gas service, as defined in Section 13 of the Energy
22    Assistance Act, which had 4,000,000 or more therms of gas
23    distributed to it during the previous calendar year.
24    (b) The Renewable Energy Resources and Coal Technology
25Development Assistance Charge assessed by electric and gas
26public utilities shall be considered a charge for public

 

 

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1utility service.
2    (c) Fifty percent of the moneys collected pursuant to this
3Section shall be deposited in the Renewable Energy Resources
4Trust Fund by the Department of Revenue. From those funds,
5$2,000,000 may be used annually by the Department to provide
6grants to the Illinois Green Economy Network for the purposes
7of funding education and training for renewable energy and
8energy efficiency technology and for the operation and services
9of the Illinois Green Economy Network. The remaining 50 percent
10of the moneys collected pursuant to this Section shall be
11deposited in the Coal Technology Development Assistance Fund by
12the Department of Revenue for the exclusive purposes of (1)
13capturing or sequestering carbon emissions produced by coal
14combustion; (2) supporting research on the capture and
15sequestration of carbon emissions produced by coal combustion;
16and (3) improving coal miner safety.
17    (d) By the 20th day of the month following the month in
18which the charges imposed by this Section were collected, each
19utility and alternative retail electric supplier collecting
20charges pursuant to this Section shall remit to the Department
21of Revenue for deposit in the Renewable Energy Resources Trust
22Fund and the Coal Technology Development Assistance Fund all
23moneys received as payment of the charge provided for in this
24Section on a return prescribed and furnished by the Department
25of Revenue showing such information as the Department of
26Revenue may reasonably require.

 

 

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1    If any payment provided for in this Section exceeds the
2utility or alternate retail electric supplier's liabilities
3under this Act, as shown on an original return, the utility or
4alternative retail electric supplier may credit the excess
5payment against liability subsequently to be remitted to the
6Department of Revenue under this Act.
7    (e) The charges imposed by this Section shall only apply to
8customers of municipal electric or gas utilities and electric
9or gas cooperatives if the municipal electric or gas utility or
10electric or gas cooperative makes an affirmative decision to
11impose the charge. If a municipal electric or gas utility or an
12electric or gas cooperative makes an affirmative decision to
13impose the charge provided by this Section, the municipal
14electric or gas utility or electric or gas cooperative shall
15inform the Department of Revenue in writing of such decision
16when it begins to impose the charge. If a municipal electric or
17gas utility or electric or gas cooperative does not assess this
18charge, its customers shall not be eligible for the Renewable
19Energy Resources Program.
20    (f) The Department of Revenue may establish such rules as
21it deems necessary to implement this Section.
22(Source: P.A. 100-402, eff. 8-25-17.)
 
23    (20 ILCS 687/6-8 new)
24    Sec. 6-8. Application of Retailers' Occupation Tax
25provisions. All the provisions of Sections 4, 5, 5a, 5b, 5c,

 

 

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15d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12,
2and 13 of the Retailers' Occupation Tax Act that are not
3inconsistent with this Act apply, as far as practicable, to the
4surcharge imposed by this Act to the same extent as if those
5provisions were included in this Act. References in the
6incorporated Sections of the Retailers' Occupation Tax Act to
7retailers, to sellers, or to persons engaged in the business of
8selling tangible personal property mean persons required to
9remit the charge imposed under this Act.
 
10    (20 ILCS 715/10 rep.)
11    Section 10. The Corporate Accountability for Tax
12Expenditures Act is amended by repealing Section 10.
 
13    Section 15. The Department of Revenue Law of the Civil
14Administrative Code of Illinois is amended by changing Section
152505-210 as follows:
 
16    (20 ILCS 2505/2505-210)  (was 20 ILCS 2505/39c-1)
17    Sec. 2505-210. Electronic funds transfer.
18    (a) The Department may provide means by which persons
19having a tax liability under any Act administered by the
20Department may use electronic funds transfer to pay the tax
21liability.
22    (b) Mandatory payment by electronic funds transfer.
23Beginning on October 1, 2002, and through September 30, 2010, a

 

 

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1taxpayer who has an annual tax liability of $200,000 or more
2shall make all payments of that tax to the Department by
3electronic funds transfer. Beginning October 1, 2010, a
4taxpayer (other than an individual taxpayer) who has an annual
5tax liability of $20,000 or more and an individual taxpayer who
6has an annual tax liability of $200,000 or more shall make all
7payments of that tax to the Department by electronic funds
8transfer. Before August 1 of each year, beginning in 2002, the
9Department shall notify all taxpayers required to make payments
10by electronic funds transfer. All taxpayers required to make
11payments by electronic funds transfer shall make those payments
12for a minimum of one year beginning on October 1. For purposes
13of this subsection (b), the term "annual tax liability" means,
14except as provided in subsections (c) and (d) of this Section,
15the sum of the taxpayer's liabilities under a tax Act
16administered by the Department, except the Motor Fuel Tax Law
17and the Environmental Impact Fee Law, for the immediately
18preceding calendar year.
19    (c) For purposes of subsection (b), the term "annual tax
20liability" means, for a taxpayer that incurs a tax liability
21under the Retailers' Occupation Tax Act, Service Occupation Tax
22Act, Use Tax Act, Service Use Tax Act, or any other State or
23local occupation or use tax law that is administered by the
24Department, the sum of the taxpayer's liabilities under the
25Retailers' Occupation Tax Act, Service Occupation Tax Act, Use
26Tax Act, Service Use Tax Act, and all other State and local

 

 

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1occupation and use tax laws administered by the Department for
2the immediately preceding calendar year.
3    (d) For purposes of subsection (b), the term "annual tax
4liability" means, for a taxpayer that incurs an Illinois income
5tax liability, the greater of:
6        (1) the amount of the taxpayer's tax liability under
7    Article 7 of the Illinois Income Tax Act for the
8    immediately preceding calendar year; or
9        (2) the taxpayer's estimated tax payment obligation
10    under Article 8 of the Illinois Income Tax Act for the
11    immediately preceding calendar year.
12    (e) The Department shall adopt such rules as are necessary
13to effectuate a program of electronic funds transfer and the
14requirements of this Section.
15(Source: P.A. 96-1027, eff. 7-12-10.)
 
16    Section 20. The State Finance Act is amended by changing
17Section 6z-18 as follows:
 
18    (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
19    Sec. 6z-18. Local Government Tax Fund. A portion of the
20money paid into the Local Government Tax Fund from sales of
21tangible personal property taxed at the 1% rate under the
22Retailers' Occupation Tax Act and the Service Occupation Tax
23Act food for human consumption which is to be consumed off the
24premises where it is sold (other than alcoholic beverages, soft

 

 

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1drinks and food which has been prepared for immediate
2consumption) and prescription and nonprescription medicines,
3drugs, medical appliances and insulin, urine testing
4materials, syringes and needles used by diabetics, which
5occurred in municipalities, shall be distributed to each
6municipality based upon the sales which occurred in that
7municipality. The remainder shall be distributed to each county
8based upon the sales which occurred in the unincorporated area
9of that county.
10    A portion of the money paid into the Local Government Tax
11Fund from the 6.25% general use tax rate on the selling price
12of tangible personal property which is purchased outside
13Illinois at retail from a retailer and which is titled or
14registered by any agency of this State's government shall be
15distributed to municipalities as provided in this paragraph.
16Each municipality shall receive the amount attributable to
17sales for which Illinois addresses for titling or registration
18purposes are given as being in such municipality. The remainder
19of the money paid into the Local Government Tax Fund from such
20sales shall be distributed to counties. Each county shall
21receive the amount attributable to sales for which Illinois
22addresses for titling or registration purposes are given as
23being located in the unincorporated area of such county.
24    A portion of the money paid into the Local Government Tax
25Fund from the 6.25% general rate (and, beginning July 1, 2000
26and through December 31, 2000, the 1.25% rate on motor fuel and

 

 

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1gasohol, and beginning on August 6, 2010 through August 15,
22010, the 1.25% rate on sales tax holiday items) on sales
3subject to taxation under the Retailers' Occupation Tax Act and
4the Service Occupation Tax Act, which occurred in
5municipalities, shall be distributed to each municipality,
6based upon the sales which occurred in that municipality. The
7remainder shall be distributed to each county, based upon the
8sales which occurred in the unincorporated area of such county.
9    For the purpose of determining allocation to the local
10government unit, a retail sale by a producer of coal or other
11mineral mined in Illinois is a sale at retail at the place
12where the coal or other mineral mined in Illinois is extracted
13from the earth. This paragraph does not apply to coal or other
14mineral when it is delivered or shipped by the seller to the
15purchaser at a point outside Illinois so that the sale is
16exempt under the United States Constitution as a sale in
17interstate or foreign commerce.
18    Whenever the Department determines that a refund of money
19paid into the Local Government Tax Fund should be made to a
20claimant instead of issuing a credit memorandum, the Department
21shall notify the State Comptroller, who shall cause the order
22to be drawn for the amount specified, and to the person named,
23in such notification from the Department. Such refund shall be
24paid by the State Treasurer out of the Local Government Tax
25Fund.
26    As soon as possible after the first day of each month,

 

 

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1beginning January 1, 2011, upon certification of the Department
2of Revenue, the Comptroller shall order transferred, and the
3Treasurer shall transfer, to the STAR Bonds Revenue Fund the
4local sales tax increment, as defined in the Innovation
5Development and Economy Act, collected during the second
6preceding calendar month for sales within a STAR bond district
7and deposited into the Local Government Tax Fund, less 3% of
8that amount, which shall be transferred into the Tax Compliance
9and Administration Fund and shall be used by the Department,
10subject to appropriation, to cover the costs of the Department
11in administering the Innovation Development and Economy Act.
12    After the monthly transfer to the STAR Bonds Revenue Fund,
13on or before the 25th day of each calendar month, the
14Department shall prepare and certify to the Comptroller the
15disbursement of stated sums of money to named municipalities
16and counties, the municipalities and counties to be those
17entitled to distribution of taxes or penalties paid to the
18Department during the second preceding calendar month. The
19amount to be paid to each municipality or county shall be the
20amount (not including credit memoranda) collected during the
21second preceding calendar month by the Department and paid into
22the Local Government Tax Fund, plus an amount the Department
23determines is necessary to offset any amounts which were
24erroneously paid to a different taxing body, and not including
25an amount equal to the amount of refunds made during the second
26preceding calendar month by the Department, and not including

 

 

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

 

 

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1county or municipal retailers' occupation tax, use tax or
2service occupation tax which now cannot be imposed, such
3description or reference shall be deemed to include the
4replacement revenue for such abolished taxes, distributed from
5the Local Government Tax Fund.
6    As soon as possible after the effective date of this
7amendatory Act of the 98th General Assembly, the State
8Comptroller shall order and the State Treasurer shall transfer
9$6,600,000 from the Local Government Tax Fund to the Illinois
10State Medical Disciplinary Fund.
11(Source: P.A. 97-333, eff. 8-12-11; 98-3, eff. 3-8-13.)
 
12    Section 25. The Illinois Income Tax Act is amended by
13changing Section 901 and by adding Section 703A as follows:
 
14    (35 ILCS 5/703A new)
15    Sec. 703A. Information for reportable payment
16transactions. Every person required under Section 6050W of the
17Internal Revenue Code to file federal Form 1099-K, Third-Party
18Payment Card and Third Party Network Transactions, identifying
19a reportable payment transaction to a payee with an Illinois
20address shall furnish a copy to the Department at such time and
21in such manner as the Department may prescribe.
 
22    (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
23    Sec. 901. Collection authority.

 

 

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1    (a) In general. The Department shall collect the taxes
2imposed by this Act. The Department shall collect certified
3past due child support amounts under Section 2505-650 of the
4Department of Revenue Law of the Civil Administrative Code of
5Illinois. Except as provided in subsections (b), (c), (e), (f),
6(g), and (h) of this Section, money collected pursuant to
7subsections (a) and (b) of Section 201 of this Act shall be
8paid into the General Revenue Fund in the State treasury; money
9collected pursuant to subsections (c) and (d) of Section 201 of
10this Act shall be paid into the Personal Property Tax
11Replacement Fund, a special fund in the State Treasury; and
12money collected under Section 2505-650 of the Department of
13Revenue Law of the Civil Administrative Code of Illinois (20
14ILCS 2505/2505-650) shall be paid into the Child Support
15Enforcement Trust Fund, a special fund outside the State
16Treasury, or to the State Disbursement Unit established under
17Section 10-26 of the Illinois Public Aid Code, as directed by
18the Department of Healthcare and Family Services.
19    (b) Local Government Distributive Fund. Beginning August
201, 1969, and continuing through June 30, 1994, the Treasurer
21shall transfer each month from the General Revenue Fund to a
22special fund in the State treasury, to be known as the "Local
23Government Distributive Fund", an amount equal to 1/12 of the
24net revenue realized from the tax imposed by subsections (a)
25and (b) of Section 201 of this Act during the preceding month.
26Beginning July 1, 1994, and continuing through June 30, 1995,

 

 

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1the Treasurer shall transfer each month from the General
2Revenue Fund to the Local Government Distributive Fund an
3amount equal to 1/11 of the net revenue realized from the tax
4imposed by subsections (a) and (b) of Section 201 of this Act
5during the preceding month. Beginning July 1, 1995 and
6continuing through January 31, 2011, the Treasurer shall
7transfer each month from the General Revenue Fund to the Local
8Government Distributive Fund an amount equal to the net of (i)
91/10 of the net revenue realized from the tax imposed by
10subsections (a) and (b) of Section 201 of the Illinois Income
11Tax Act during the preceding month (ii) minus, beginning July
121, 2003 and ending June 30, 2004, $6,666,666, and beginning
13July 1, 2004, zero. Beginning February 1, 2011, and continuing
14through January 31, 2015, the Treasurer shall transfer each
15month from the General Revenue Fund to the Local Government
16Distributive Fund an amount equal to the sum of (i) 6% (10% of
17the ratio of the 3% individual income tax rate prior to 2011 to
18the 5% individual income tax rate after 2010) of the net
19revenue realized from the tax imposed by subsections (a) and
20(b) of Section 201 of this Act upon individuals, trusts, and
21estates during the preceding month and (ii) 6.86% (10% of the
22ratio of the 4.8% corporate income tax rate prior to 2011 to
23the 7% corporate income tax rate after 2010) of the net revenue
24realized from the tax imposed by subsections (a) and (b) of
25Section 201 of this Act upon corporations during the preceding
26month. Beginning February 1, 2015 and continuing through July

 

 

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131, 2017, the Treasurer shall transfer each month from the
2General Revenue Fund to the Local Government Distributive Fund
3an amount equal to the sum of (i) 8% (10% of the ratio of the 3%
4individual income tax rate prior to 2011 to the 3.75%
5individual income tax rate after 2014) of the net revenue
6realized from the tax imposed by subsections (a) and (b) of
7Section 201 of this Act upon individuals, trusts, and estates
8during the preceding month and (ii) 9.14% (10% of the ratio of
9the 4.8% corporate income tax rate prior to 2011 to the 5.25%
10corporate income tax rate after 2014) of the net revenue
11realized from the tax imposed by subsections (a) and (b) of
12Section 201 of this Act upon corporations during the preceding
13month. Beginning August 1, 2017, the Treasurer shall transfer
14each month from the General Revenue Fund to the Local
15Government Distributive Fund an amount equal to the sum of (i)
166.06% (10% of the ratio of the 3% individual income tax rate
17prior to 2011 to the 4.95% individual income tax rate after
18July 1, 2017) of the net revenue realized from the tax imposed
19by subsections (a) and (b) of Section 201 of this Act upon
20individuals, trusts, and estates during the preceding month and
21(ii) 6.85% (10% of the ratio of the 4.8% corporate income tax
22rate prior to 2011 to the 7% corporate income tax rate after
23July 1, 2017) of the net revenue realized from the tax imposed
24by subsections (a) and (b) of Section 201 of this Act upon
25corporations during the preceding month. Net revenue realized
26for a month shall be defined as the revenue from the tax

 

 

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1imposed by subsections (a) and (b) of Section 201 of this Act
2which is deposited in the General Revenue Fund, the Education
3Assistance Fund, the Income Tax Surcharge Local Government
4Distributive Fund, the Fund for the Advancement of Education,
5and the Commitment to Human Services Fund during the month
6minus the amount paid out of the General Revenue Fund in State
7warrants during that same month as refunds to taxpayers for
8overpayment of liability under the tax imposed by subsections
9(a) and (b) of Section 201 of this Act.
10    Notwithstanding any provision of law to the contrary,
11beginning on July 6, 2017 (the effective date of Public Act
12100-23) this amendatory Act of the 100th General Assembly,
13those amounts required under this subsection (b) to be
14transferred by the Treasurer into the Local Government
15Distributive Fund from the General Revenue Fund shall be
16directly deposited into the Local Government Distributive Fund
17as the revenue is realized from the tax imposed by subsections
18(a) and (b) of Section 201 of this Act.
19    For State fiscal year 2018 only, notwithstanding any
20provision of law to the contrary, the total amount of revenue
21and deposits under this Section attributable to revenues
22realized during State fiscal year 2018 shall be reduced by 10%.
23    (c) Deposits Into Income Tax Refund Fund.
24        (1) Beginning on January 1, 1989 and thereafter, the
25    Department shall deposit a percentage of the amounts
26    collected pursuant to subsections (a) and (b)(1), (2), and

 

 

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1    (3), of Section 201 of this Act into a fund in the State
2    treasury known as the Income Tax Refund Fund. The
3    Department shall deposit 6% of such amounts during the
4    period beginning January 1, 1989 and ending on June 30,
5    1989. Beginning with State fiscal year 1990 and for each
6    fiscal year thereafter, the percentage deposited into the
7    Income Tax Refund Fund during a fiscal year shall be the
8    Annual Percentage. For fiscal years 1999 through 2001, the
9    Annual Percentage shall be 7.1%. For fiscal year 2003, the
10    Annual Percentage shall be 8%. For fiscal year 2004, the
11    Annual Percentage shall be 11.7%. Upon the effective date
12    of Public Act 93-839 (July 30, 2004) this amendatory Act of
13    the 93rd General Assembly, the Annual Percentage shall be
14    10% for fiscal year 2005. For fiscal year 2006, the Annual
15    Percentage shall be 9.75%. For fiscal year 2007, the Annual
16    Percentage shall be 9.75%. For fiscal year 2008, the Annual
17    Percentage shall be 7.75%. For fiscal year 2009, the Annual
18    Percentage shall be 9.75%. For fiscal year 2010, the Annual
19    Percentage shall be 9.75%. For fiscal year 2011, the Annual
20    Percentage shall be 8.75%. For fiscal year 2012, the Annual
21    Percentage shall be 8.75%. For fiscal year 2013, the Annual
22    Percentage shall be 9.75%. For fiscal year 2014, the Annual
23    Percentage shall be 9.5%. For fiscal year 2015, the Annual
24    Percentage shall be 10%. For fiscal year 2018, the Annual
25    Percentage shall be 9.8%. For all other fiscal years, the
26    Annual Percentage shall be calculated as a fraction, the

 

 

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1    numerator of which shall be the amount of refunds approved
2    for payment by the Department during the preceding fiscal
3    year as a result of overpayment of tax liability under
4    subsections (a) and (b)(1), (2), and (3) of Section 201 of
5    this Act plus the amount of such refunds remaining approved
6    but unpaid at the end of the preceding fiscal year, minus
7    the amounts transferred into the Income Tax Refund Fund
8    from the Tobacco Settlement Recovery Fund, and the
9    denominator of which shall be the amounts which will be
10    collected pursuant to subsections (a) and (b)(1), (2), and
11    (3) of Section 201 of this Act during the preceding fiscal
12    year; except that in State fiscal year 2002, the Annual
13    Percentage shall in no event exceed 7.6%. The Director of
14    Revenue shall certify the Annual Percentage to the
15    Comptroller on the last business day of the fiscal year
16    immediately preceding the fiscal year for which it is to be
17    effective.
18        (2) Beginning on January 1, 1989 and thereafter, the
19    Department shall deposit a percentage of the amounts
20    collected pursuant to subsections (a) and (b)(6), (7), and
21    (8), (c) and (d) of Section 201 of this Act into a fund in
22    the State treasury known as the Income Tax Refund Fund. The
23    Department shall deposit 18% of such amounts during the
24    period beginning January 1, 1989 and ending on June 30,
25    1989. Beginning with State fiscal year 1990 and for each
26    fiscal year thereafter, the percentage deposited into the

 

 

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1    Income Tax Refund Fund during a fiscal year shall be the
2    Annual Percentage. For fiscal years 1999, 2000, and 2001,
3    the Annual Percentage shall be 19%. For fiscal year 2003,
4    the Annual Percentage shall be 27%. For fiscal year 2004,
5    the Annual Percentage shall be 32%. Upon the effective date
6    of Public Act 93-839 (July 30, 2004) this amendatory Act of
7    the 93rd General Assembly, the Annual Percentage shall be
8    24% for fiscal year 2005. For fiscal year 2006, the Annual
9    Percentage shall be 20%. For fiscal year 2007, the Annual
10    Percentage shall be 17.5%. For fiscal year 2008, the Annual
11    Percentage shall be 15.5%. For fiscal year 2009, the Annual
12    Percentage shall be 17.5%. For fiscal year 2010, the Annual
13    Percentage shall be 17.5%. For fiscal year 2011, the Annual
14    Percentage shall be 17.5%. For fiscal year 2012, the Annual
15    Percentage shall be 17.5%. For fiscal year 2013, the Annual
16    Percentage shall be 14%. For fiscal year 2014, the Annual
17    Percentage shall be 13.4%. For fiscal year 2015, the Annual
18    Percentage shall be 14%. For fiscal year 2018, the Annual
19    Percentage shall be 17.5%. For all other fiscal years, the
20    Annual Percentage shall be calculated as a fraction, the
21    numerator of which shall be the amount of refunds approved
22    for payment by the Department during the preceding fiscal
23    year as a result of overpayment of tax liability under
24    subsections (a) and (b)(6), (7), and (8), (c) and (d) of
25    Section 201 of this Act plus the amount of such refunds
26    remaining approved but unpaid at the end of the preceding

 

 

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1    fiscal year, and the denominator of which shall be the
2    amounts which will be collected pursuant to subsections (a)
3    and (b)(6), (7), and (8), (c) and (d) of Section 201 of
4    this Act during the preceding fiscal year; except that in
5    State fiscal year 2002, the Annual Percentage shall in no
6    event exceed 23%. The Director of Revenue shall certify the
7    Annual Percentage to the Comptroller on the last business
8    day of the fiscal year immediately preceding the fiscal
9    year for which it is to be effective.
10        (3) The Comptroller shall order transferred and the
11    Treasurer shall transfer from the Tobacco Settlement
12    Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
13    in January, 2001, (ii) $35,000,000 in January, 2002, and
14    (iii) $35,000,000 in January, 2003.
15    (d) Expenditures from Income Tax Refund Fund.
16        (1) Beginning January 1, 1989, money in the Income Tax
17    Refund Fund shall be expended exclusively for the purpose
18    of paying refunds resulting from overpayment of tax
19    liability under Section 201 of this Act, for paying rebates
20    under Section 208.1 in the event that the amounts in the
21    Homeowners' Tax Relief Fund are insufficient for that
22    purpose, and for making transfers pursuant to this
23    subsection (d).
24        (2) The Director shall order payment of refunds
25    resulting from overpayment of tax liability under Section
26    201 of this Act from the Income Tax Refund Fund only to the

 

 

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

 

 

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1    Section 201 of this Act deposited into the Income Tax
2    Refund Fund during the fiscal year.
3        (4.5) As soon as possible after the end of fiscal year
4    1999 and of each fiscal year thereafter, the Director shall
5    order transferred and the State Treasurer and State
6    Comptroller shall transfer from the Income Tax Refund Fund
7    to the General Revenue Fund any surplus remaining in the
8    Income Tax Refund Fund as of the end of such fiscal year;
9    excluding for fiscal years 2000, 2001, and 2002 amounts
10    attributable to transfers under item (3) of subsection (c)
11    less refunds resulting from the earned income tax credit.
12        (5) This Act shall constitute an irrevocable and
13    continuing appropriation from the Income Tax Refund Fund
14    for the purpose of paying refunds upon the order of the
15    Director in accordance with the provisions of this Section.
16    (e) Deposits into the Education Assistance Fund and the
17Income Tax Surcharge Local Government Distributive Fund. On
18July 1, 1991, and thereafter, of the amounts collected pursuant
19to subsections (a) and (b) of Section 201 of this Act, minus
20deposits into the Income Tax Refund Fund, the Department shall
21deposit 7.3% into the Education Assistance Fund in the State
22Treasury. Beginning July 1, 1991, and continuing through
23January 31, 1993, of the amounts collected pursuant to
24subsections (a) and (b) of Section 201 of the Illinois Income
25Tax Act, minus deposits into the Income Tax Refund Fund, the
26Department shall deposit 3.0% into the Income Tax Surcharge

 

 

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1Local Government Distributive Fund in the State Treasury.
2Beginning February 1, 1993 and continuing through June 30,
31993, of the amounts collected pursuant to subsections (a) and
4(b) of Section 201 of the Illinois Income Tax Act, minus
5deposits into the Income Tax Refund Fund, the Department shall
6deposit 4.4% into the Income Tax Surcharge Local Government
7Distributive Fund in the State Treasury. Beginning July 1,
81993, and continuing through June 30, 1994, of the amounts
9collected under subsections (a) and (b) of Section 201 of this
10Act, minus deposits into the Income Tax Refund Fund, the
11Department shall deposit 1.475% into the Income Tax Surcharge
12Local Government Distributive Fund in the State Treasury.
13    (f) Deposits into the Fund for the Advancement of
14Education. Beginning February 1, 2015, the Department shall
15deposit the following portions of the revenue realized from the
16tax imposed upon individuals, trusts, and estates by
17subsections (a) and (b) of Section 201 of this Act during the
18preceding month, minus deposits into the Income Tax Refund
19Fund, into the Fund for the Advancement of Education:
20        (1) beginning February 1, 2015, and prior to February
21    1, 2025, 1/30; and
22        (2) beginning February 1, 2025, 1/26.
23    If the rate of tax imposed by subsection (a) and (b) of
24Section 201 is reduced pursuant to Section 201.5 of this Act,
25the Department shall not make the deposits required by this
26subsection (f) on or after the effective date of the reduction.

 

 

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

 

 

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1(Source: P.A. 99-78, eff. 7-20-15; 100-22, eff. 7-6-17; 100-23,
2eff. 7-6-17; revised 8-3-17.)
 
3    Section 30. The Use Tax Act is amended by changing Sections
43-5, 3-5.5, 9, 10 as follows:
 
5    (35 ILCS 105/3-5)
6    Sec. 3-5. Exemptions. Use of the following tangible
7personal property is exempt from the tax imposed by this Act:
8    (1) Personal property purchased from a corporation,
9society, association, foundation, institution, or
10organization, other than a limited liability company, that is
11organized and operated as a not-for-profit service enterprise
12for the benefit of persons 65 years of age or older if the
13personal property was not purchased by the enterprise for the
14purpose of resale by the enterprise.
15    (2) Personal property purchased by a not-for-profit
16Illinois county fair association for use in conducting,
17operating, or promoting the county fair.
18    (3) Personal property purchased by a not-for-profit arts or
19cultural organization that establishes, by proof required by
20the Department by rule, that it has received an exemption under
21Section 501(c)(3) of the Internal Revenue Code and that is
22organized and operated primarily for the presentation or
23support of arts or cultural programming, activities, or
24services. These organizations include, but are not limited to,

 

 

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1music and dramatic arts organizations such as symphony
2orchestras and theatrical groups, arts and cultural service
3organizations, local arts councils, visual arts organizations,
4and media arts organizations. On and after July 1, 2001 (the
5effective date of Public Act 92-35) this amendatory Act of the
692nd General Assembly, however, an entity otherwise eligible
7for this exemption shall not make tax-free purchases unless it
8has an active identification number issued by the Department.
9    (4) Personal property purchased by a governmental body, by
10a corporation, society, association, foundation, or
11institution organized and operated exclusively for charitable,
12religious, or educational purposes, or by a not-for-profit
13corporation, society, association, foundation, institution, or
14organization that has no compensated officers or employees and
15that is organized and operated primarily for the recreation of
16persons 55 years of age or older. A limited liability company
17may qualify for the exemption under this paragraph only if the
18limited liability company is organized and operated
19exclusively for educational purposes. On and after July 1,
201987, however, no entity otherwise eligible for this exemption
21shall make tax-free purchases unless it has an active exemption
22identification number issued by the Department.
23    (5) Until July 1, 2003, a passenger car that is a
24replacement vehicle to the extent that the purchase price of
25the car is subject to the Replacement Vehicle Tax.
26    (6) Until July 1, 2003 and beginning again on September 1,

 

 

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

 

 

SB3445- 28 -LRB100 20331 HLH 35618 b

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

 

 

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

 

 

SB3445- 30 -LRB100 20331 HLH 35618 b

1extent that the proceeds of the service charge are in fact
2turned over as tips or as a substitute for tips to the
3employees who participate directly in preparing, serving,
4hosting or cleaning up the food or beverage function with
5respect to which the service charge is imposed.
6    (14) Until July 1, 2003, oil field exploration, drilling,
7and production equipment, including (i) rigs and parts of rigs,
8rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
9tubular goods, including casing and drill strings, (iii) pumps
10and pump-jack units, (iv) storage tanks and flow lines, (v) any
11individual replacement part for oil field exploration,
12drilling, and production equipment, and (vi) machinery and
13equipment purchased for lease; but excluding motor vehicles
14required to be registered under the Illinois Vehicle Code.
15    (15) Photoprocessing machinery and equipment, including
16repair and replacement parts, both new and used, including that
17manufactured on special order, certified by the purchaser to be
18used primarily for photoprocessing, and including
19photoprocessing machinery and equipment purchased for lease.
20    (16) Coal and aggregate exploration, mining, off-highway
21hauling, processing, maintenance, and reclamation equipment,
22including replacement parts and equipment, and including
23equipment purchased for lease, but excluding motor vehicles
24required to be registered under the Illinois Vehicle Code. The
25changes made to this Section by Public Act 97-767 apply on and
26after July 1, 2003, but no claim for credit or refund is

 

 

SB3445- 31 -LRB100 20331 HLH 35618 b

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

 

 

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1water for wholesale or retail sale that is delivered to
2customers through pipes, pipelines, or mains. The provisions of
3Public Act 98-583 are declaratory of existing law as to the
4meaning and scope of this exemption. Beginning on July 1, 2017,
5the exemption provided by this paragraph (18) includes, but is
6not limited to, graphic arts machinery and equipment, as
7defined in paragraph (6) of this Section.
8    (19) Personal property delivered to a purchaser or
9purchaser's donee inside Illinois when the purchase order for
10that personal property was received by a florist located
11outside Illinois who has a florist located inside Illinois
12deliver the personal property.
13    (20) Semen used for artificial insemination of livestock
14for direct agricultural production.
15    (21) Horses, or interests in horses, registered with and
16meeting the requirements of any of the Arabian Horse Club
17Registry of America, Appaloosa Horse Club, American Quarter
18Horse Association, United States Trotting Association, or
19Jockey Club, as appropriate, used for purposes of breeding or
20racing for prizes. This item (21) is exempt from the provisions
21of Section 3-90, and the exemption provided for under this item
22(21) applies for all periods beginning May 30, 1995, but no
23claim for credit or refund is allowed on or after January 1,
242008 for such taxes paid during the period beginning May 30,
252000 and ending on January 1, 2008.
26    (22) Computers and communications equipment utilized for

 

 

SB3445- 33 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 34 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 35 -LRB100 20331 HLH 35618 b

1    (25) Beginning with taxable years ending on or after
2December 31, 1995 and ending with taxable years ending on or
3before December 31, 2004, personal property that is used in the
4performance of infrastructure repairs in this State, including
5but not limited to municipal roads and streets, access roads,
6bridges, sidewalks, waste disposal systems, water and sewer
7line extensions, water distribution and purification
8facilities, storm water drainage and retention facilities, and
9sewage treatment facilities, resulting from a State or
10federally declared disaster in Illinois or bordering Illinois
11when such repairs are initiated on facilities located in the
12declared disaster area within 6 months after the disaster.
13    (26) Beginning July 1, 1999, game or game birds purchased
14at a "game breeding and hunting preserve area" as that term is
15used in the Wildlife Code. This paragraph is exempt from the
16provisions of Section 3-90.
17    (27) A motor vehicle, as that term is defined in Section
181-146 of the Illinois Vehicle Code, that is donated to a
19corporation, limited liability company, society, association,
20foundation, or institution that is determined by the Department
21to be organized and operated exclusively for educational
22purposes. For purposes of this exemption, "a corporation,
23limited liability company, society, association, foundation,
24or institution organized and operated exclusively for
25educational purposes" means all tax-supported public schools,
26private schools that offer systematic instruction in useful

 

 

SB3445- 36 -LRB100 20331 HLH 35618 b

1branches of learning by methods common to public schools and
2that compare favorably in their scope and intensity with the
3course of study presented in tax-supported schools, and
4vocational or technical schools or institutes organized and
5operated exclusively to provide a course of study of not less
6than 6 weeks duration and designed to prepare individuals to
7follow a trade or to pursue a manual, technical, mechanical,
8industrial, business, or commercial occupation.
9    (28) Beginning January 1, 2000, personal property,
10including food, purchased through fundraising events for the
11benefit of a public or private elementary or secondary school,
12a group of those schools, or one or more school districts if
13the events are sponsored by an entity recognized by the school
14district that consists primarily of volunteers and includes
15parents and teachers of the school children. This paragraph
16does not apply to fundraising events (i) for the benefit of
17private home instruction or (ii) for which the fundraising
18entity purchases the personal property sold at the events from
19another individual or entity that sold the property for the
20purpose of resale by the fundraising entity and that profits
21from the sale to the fundraising entity. This paragraph is
22exempt from the provisions of Section 3-90.
23    (29) Beginning January 1, 2000 and through December 31,
242001, new or used automatic vending machines that prepare and
25serve hot food and beverages, including coffee, soup, and other
26items, and replacement parts for these machines. Beginning

 

 

SB3445- 37 -LRB100 20331 HLH 35618 b

1January 1, 2002 and through June 30, 2003, machines and parts
2for machines used in commercial, coin-operated amusement and
3vending business if a use or occupation tax is paid on the
4gross receipts derived from the use of the commercial,
5coin-operated amusement and vending machines. This paragraph
6is exempt from the provisions of Section 3-90.
7    (30) Beginning January 1, 2001 and through June 30, 2016,
8food for human consumption that is to be consumed off the
9premises where it is sold (other than alcoholic beverages, soft
10drinks, and food that has been prepared for immediate
11consumption) and prescription and nonprescription medicines,
12drugs, medical appliances, and insulin, urine testing
13materials, syringes, and needles used by diabetics, for human
14use, when purchased for use by a person receiving medical
15assistance under Article V of the Illinois Public Aid Code who
16resides in a licensed long-term care facility, as defined in
17the Nursing Home Care Act, or in a licensed facility as defined
18in the ID/DD Community Care Act, the MC/DD Act, or the
19Specialized Mental Health Rehabilitation Act of 2013.
20    (31) Beginning on August 2, 2001 (the effective date of
21Public Act 92-227) this amendatory Act of the 92nd General
22Assembly, computers and communications equipment utilized for
23any hospital purpose and equipment used in the diagnosis,
24analysis, or treatment of hospital patients purchased by a
25lessor who leases the equipment, under a lease of one year or
26longer executed or in effect at the time the lessor would

 

 

SB3445- 38 -LRB100 20331 HLH 35618 b

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

 

 

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1by the Department under Section 1g of the Retailers' Occupation
2Tax Act. If the property is leased in a manner that does not
3qualify for this exemption or used in any other nonexempt
4manner, the lessor shall be liable for the tax imposed under
5this Act or the Service Use Tax Act, as the case may be, based
6on the fair market value of the property at the time the
7nonqualifying use occurs. No lessor shall collect or attempt to
8collect an amount (however designated) that purports to
9reimburse that lessor for the tax imposed by this Act or the
10Service Use Tax Act, as the case may be, if the tax has not been
11paid by the lessor. If a lessor improperly collects any such
12amount from the lessee, the lessee shall have a legal right to
13claim a refund of that amount from the lessor. If, however,
14that amount is not refunded to the lessee for any reason, the
15lessor is liable to pay that amount to the Department. This
16paragraph is exempt from the provisions of Section 3-90.
17    (33) On and after July 1, 2003 and through June 30, 2004,
18the use in this State of motor vehicles of the second division
19with a gross vehicle weight in excess of 8,000 pounds and that
20are subject to the commercial distribution fee imposed under
21Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
221, 2004 and through June 30, 2005, the use in this State of
23motor vehicles of the second division: (i) with a gross vehicle
24weight rating in excess of 8,000 pounds; (ii) that are subject
25to the commercial distribution fee imposed under Section
263-815.1 of the Illinois Vehicle Code; and (iii) that are

 

 

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1primarily used for commercial purposes. Through June 30, 2005,
2this exemption applies to repair and replacement parts added
3after the initial purchase of such a motor vehicle if that
4motor vehicle is used in a manner that would qualify for the
5rolling stock exemption otherwise provided for in this Act. For
6purposes of this paragraph, the term "used for commercial
7purposes" means the transportation of persons or property in
8furtherance of any commercial or industrial enterprise,
9whether for-hire or not.
10    (34) Beginning January 1, 2008, tangible personal property
11used in the construction or maintenance of a community water
12supply, as defined under Section 3.145 of the Environmental
13Protection Act, that is operated by a not-for-profit
14corporation that holds a valid water supply permit issued under
15Title IV of the Environmental Protection Act. This paragraph is
16exempt from the provisions of Section 3-90.
17    (35) Beginning January 1, 2010, materials, parts,
18equipment, components, and furnishings incorporated into or
19upon an aircraft as part of the modification, refurbishment,
20completion, replacement, repair, or maintenance of the
21aircraft. This exemption includes consumable supplies used in
22the modification, refurbishment, completion, replacement,
23repair, and maintenance of aircraft, but excludes any
24materials, parts, equipment, components, and consumable
25supplies used in the modification, replacement, repair, and
26maintenance of aircraft engines or power plants, whether such

 

 

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1engines or power plants are installed or uninstalled upon any
2such aircraft. "Consumable supplies" include, but are not
3limited to, adhesive, tape, sandpaper, general purpose
4lubricants, cleaning solution, latex gloves, and protective
5films. This exemption applies only to the use of qualifying
6tangible personal property by persons who modify, refurbish,
7complete, repair, replace, or maintain aircraft and who (i)
8hold an Air Agency Certificate and are empowered to operate an
9approved repair station by the Federal Aviation
10Administration, (ii) have a Class IV Rating, and (iii) conduct
11operations in accordance with Part 145 of the Federal Aviation
12Regulations. The exemption does not include aircraft operated
13by a commercial air carrier providing scheduled passenger air
14service pursuant to authority issued under Part 121 or Part 129
15of the Federal Aviation Regulations. The changes made to this
16paragraph (35) by Public Act 98-534 are declarative of existing
17law.
18    (36) Tangible personal property purchased by a
19public-facilities corporation, as described in Section
2011-65-10 of the Illinois Municipal Code, for purposes of
21constructing or furnishing a municipal convention hall, but
22only if the legal title to the municipal convention hall is
23transferred to the municipality without any further
24consideration by or on behalf of the municipality at the time
25of the completion of the municipal convention hall or upon the
26retirement or redemption of any bonds or other debt instruments

 

 

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1issued by the public-facilities corporation in connection with
2the development of the municipal convention hall. This
3exemption includes existing public-facilities corporations as
4provided in Section 11-65-25 of the Illinois Municipal Code.
5This paragraph is exempt from the provisions of Section 3-90.
6    (37) Beginning January 1, 2017, menstrual pads, tampons,
7and menstrual cups.
8    (38) Merchandise that is subject to the Rental Purchase
9Agreement Occupation and Use Tax. The purchaser must certify
10that the item is purchased to be rented subject to a rental
11purchase agreement, as defined in the Rental Purchase Agreement
12Act, and provide proof of registration under the Rental
13Purchase Agreement Occupation and Use Tax Act. This paragraph
14is exempt from the provisions of Section 3-90.
15    (39) Tangible personal property purchased by a purchaser
16who is exempt from the tax imposed by this Act by operation of
17federal law. This paragraph is exempt from the provisions of
18Section 3-90.
19(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
20100-22, eff. 7-6-17; 100-437, eff. 1-1-18; revised 9-27-17.)
 
21    (35 ILCS 105/3-5.5)
22    Sec. 3-5.5. Food and drugs sold by not-for-profit
23organizations; exemption. The Department shall not collect the
241% tax imposed under this Act on food for human consumption
25that is to be consumed off the premises where it is sold (other

 

 

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1than alcoholic beverages, soft drinks, and food that has been
2prepared for immediate consumption) and prescription and
3nonprescription medicines, drugs, medical appliances, and
4insulin, urine testing materials, syringes, and needles used by
5diabetics, for human use from any not-for-profit organization,
6that sells food in a food distribution program at a price below
7the retail cost of the food to purchasers who, as a condition
8of participation in the program, are required to perform
9community service, located in a county or municipality that
10notifies the Department, in writing, that the county or
11municipality does not want the tax to be collected from any of
12such organizations located in the county or municipality.
13(Source: P.A. 88-374.)
 
14    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
15    (Text of Section before amendment by P.A. 100-363)
16    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
17and trailers that are required to be registered with an agency
18of this State, each retailer required or authorized to collect
19the tax imposed by this Act shall pay to the Department the
20amount of such tax (except as otherwise provided) at the time
21when he is required to file his return for the period during
22which such tax was collected, less a discount of 2.1% prior to
23January 1, 1990, and 1.75% on and after January 1, 1990, or $5
24per calendar year, whichever is greater, which is allowed to
25reimburse the retailer for expenses incurred in collecting the

 

 

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1tax, keeping records, preparing and filing returns, remitting
2the tax and supplying data to the Department on request. In the
3case of retailers who report and pay the tax on a transaction
4by transaction basis, as provided in this Section, such
5discount shall be taken with each such tax remittance instead
6of when such retailer files his periodic return. The discount
7allowed under this Section is allowed only for returns that are
8filed in the manner required by this Act. The Department may
9disallow the discount for retailers whose certificate of
10registration is revoked at the time the return is filed, but
11only if the Department's decision to revoke the certificate of
12registration has become final. A retailer need not remit that
13part of any tax collected by him to the extent that he is
14required to remit and does remit the tax imposed by the
15Retailers' Occupation Tax Act, with respect to the sale of the
16same property.
17    Where such tangible personal property is sold under a
18conditional sales contract, or under any other form of sale
19wherein the payment of the principal sum, or a part thereof, is
20extended beyond the close of the period for which the return is
21filed, the retailer, in collecting the tax (except as to motor
22vehicles, watercraft, aircraft, and trailers that are required
23to be registered with an agency of this State), may collect for
24each tax return period, only the tax applicable to that part of
25the selling price actually received during such tax return
26period.

 

 

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1    Except as provided in this Section, on or before the
2twentieth day of each calendar month, such retailer shall file
3a return for the preceding calendar month. Such return shall be
4filed on forms prescribed by the Department and shall furnish
5such information as the Department may reasonably require. On
6and after January 1, 2018, except for returns for motor
7vehicles, watercraft, aircraft, and trailers that are required
8to be registered with an agency of this State, with respect to
9retailers whose annual gross receipts average $20,000 or more,
10all returns required to be filed pursuant to this Act shall be
11filed electronically. Retailers who demonstrate that they do
12not have access to the Internet or demonstrate hardship in
13filing electronically may petition the Department to waive the
14electronic filing requirement.
15    The Department may require returns to be filed on a
16quarterly basis. If so required, a return for each calendar
17quarter shall be filed on or before the twentieth day of the
18calendar month following the end of such calendar quarter. The
19taxpayer shall also file a return with the Department for each
20of the first two months of each calendar quarter, on or before
21the twentieth day of the following calendar month, stating:
22        1. The name of the seller;
23        2. The address of the principal place of business from
24    which he engages in the business of selling tangible
25    personal property at retail in this State;
26        3. The total amount of taxable receipts received by him

 

 

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1    during the preceding calendar month from sales of tangible
2    personal property by him during such preceding calendar
3    month, including receipts from charge and time sales, but
4    less all deductions allowed by law;
5        4. The amount of credit provided in Section 2d of this
6    Act;
7        5. The amount of tax due;
8        5-5. The signature of the taxpayer; and
9        6. Such other reasonable information as the Department
10    may require.
11    If a taxpayer fails to sign a return within 30 days after
12the proper notice and demand for signature by the Department,
13the return shall be considered valid and any amount shown to be
14due on the return shall be deemed assessed.
15    Beginning October 1, 1993, a taxpayer who has an average
16monthly tax liability of $150,000 or more shall make all
17payments required by rules of the Department by electronic
18funds transfer. Beginning October 1, 1994, a taxpayer who has
19an average monthly tax liability of $100,000 or more shall make
20all payments required by rules of the Department by electronic
21funds transfer. Beginning October 1, 1995, a taxpayer who has
22an average monthly tax liability of $50,000 or more shall make
23all payments required by rules of the Department by electronic
24funds transfer. Beginning October 1, 2000, a taxpayer who has
25an annual tax liability of $200,000 or more shall make all
26payments required by rules of the Department by electronic

 

 

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

 

 

SB3445- 48 -LRB100 20331 HLH 35618 b

1effectuate a program of electronic funds transfer and the
2requirements of this Section.
3    Before October 1, 2000, if the taxpayer's average monthly
4tax liability to the Department under this Act, the Retailers'
5Occupation Tax Act, the Service Occupation Tax Act, the Service
6Use Tax Act was $10,000 or more during the preceding 4 complete
7calendar quarters, he shall file a return with the Department
8each month by the 20th day of the month next following the
9month during which such tax liability is incurred and shall
10make payments to the Department on or before the 7th, 15th,
1122nd and last day of the month during which such liability is
12incurred. On and after October 1, 2000, if the taxpayer's
13average monthly tax liability to the Department under this Act,
14the Retailers' Occupation Tax Act, the Service Occupation Tax
15Act, and the Service Use Tax Act was $20,000 or more during the
16preceding 4 complete calendar quarters, he shall file a return
17with the Department each month by the 20th day of the month
18next following the month during which such tax liability is
19incurred and shall make payment to the Department on or before
20the 7th, 15th, 22nd and last day of the month during which such
21liability is incurred. If the month during which such tax
22liability is incurred began prior to January 1, 1985, each
23payment shall be in an amount equal to 1/4 of the taxpayer's
24actual liability for the month or an amount set by the
25Department not to exceed 1/4 of the average monthly liability
26of the taxpayer to the Department for the preceding 4 complete

 

 

SB3445- 49 -LRB100 20331 HLH 35618 b

1calendar quarters (excluding the month of highest liability and
2the month of lowest liability in such 4 quarter period). If the
3month during which such tax liability is incurred begins on or
4after January 1, 1985, and prior to January 1, 1987, each
5payment shall be in an amount equal to 22.5% of the taxpayer's
6actual liability for the month or 27.5% of the taxpayer's
7liability for the same calendar month of the preceding year. If
8the month during which such tax liability is incurred begins on
9or after January 1, 1987, and prior to January 1, 1988, each
10payment shall be in an amount equal to 22.5% of the taxpayer's
11actual liability for the month or 26.25% of the taxpayer's
12liability for the same calendar month of the preceding year. If
13the month during which such tax liability is incurred begins on
14or after January 1, 1988, and prior to January 1, 1989, or
15begins on or after January 1, 1996, each payment shall be in an
16amount equal to 22.5% of the taxpayer's actual liability for
17the month or 25% of the taxpayer's liability for the same
18calendar month of the preceding year. If the month during which
19such tax liability is incurred begins on or after January 1,
201989, and prior to January 1, 1996, each payment shall be in an
21amount equal to 22.5% of the taxpayer's actual liability for
22the month or 25% of the taxpayer's liability for the same
23calendar month of the preceding year or 100% of the taxpayer's
24actual liability for the quarter monthly reporting period. The
25amount of such quarter monthly payments shall be credited
26against the final tax liability of the taxpayer's return for

 

 

SB3445- 50 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 51 -LRB100 20331 HLH 35618 b

1which causes the taxpayer to anticipate that his average
2monthly tax liability for the reasonably foreseeable future
3will fall below the $20,000 threshold stated above, then such
4taxpayer may petition the Department for a change in such
5taxpayer's reporting status. The Department shall change such
6taxpayer's reporting status unless it finds that such change is
7seasonal in nature and not likely to be long term. If any such
8quarter monthly payment is not paid at the time or in the
9amount required by this Section, then the taxpayer shall be
10liable for penalties and interest on the difference between the
11minimum amount due and the amount of such quarter monthly
12payment actually and timely paid, except insofar as the
13taxpayer has previously made payments for that month to the
14Department in excess of the minimum payments previously due as
15provided in this Section. The Department shall make reasonable
16rules and regulations to govern the quarter monthly payment
17amount and quarter monthly payment dates for taxpayers who file
18on other than a calendar monthly basis.
19    If any such payment provided for in this Section exceeds
20the taxpayer's liabilities under this Act, the Retailers'
21Occupation Tax Act, the Service Occupation Tax Act and the
22Service Use Tax Act, as shown by an original monthly return,
23the Department shall issue to the taxpayer a credit memorandum
24no later than 30 days after the date of payment, which
25memorandum may be submitted by the taxpayer to the Department
26in payment of tax liability subsequently to be remitted by the

 

 

SB3445- 52 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 53 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 54 -LRB100 20331 HLH 35618 b

1for each such item of tangible personal property which the
2retailer sells, except that if, in the same transaction, (i) a
3retailer of aircraft, watercraft, motor vehicles or trailers
4transfers more than one aircraft, watercraft, motor vehicle or
5trailer to another aircraft, watercraft, motor vehicle or
6trailer retailer for the purpose of resale or (ii) a retailer
7of aircraft, watercraft, motor vehicles, or trailers transfers
8more than one aircraft, watercraft, motor vehicle, or trailer
9to a purchaser for use as a qualifying rolling stock as
10provided in Section 3-55 of this Act, then that seller may
11report the transfer of all the aircraft, watercraft, motor
12vehicles or trailers involved in that transaction to the
13Department on the same uniform invoice-transaction reporting
14return form. For purposes of this Section, "watercraft" means a
15Class 2, Class 3, or Class 4 watercraft as defined in Section
163-2 of the Boat Registration and Safety Act, a personal
17watercraft, or any boat equipped with an inboard motor.
18    In addition, with respect to motor vehicles, watercraft,
19aircraft, and trailers that are required to be registered with
20an agency of this State, every person who is engaged in the
21business of leasing or renting such items and who, in
22connection with such business, sells any such item to a
23retailer for the purpose of resale is, notwithstanding any
24other provision of this Section to the contrary, authorized to
25meet the return-filing requirement of this Act by reporting the
26transfer of all the aircraft, watercraft, motor vehicles, or

 

 

SB3445- 55 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 56 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 57 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 58 -LRB100 20331 HLH 35618 b

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

 

 

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

 

 

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1    Beginning January 1, 1990, each month the Department shall
2pay into the State and Local Sales Tax Reform Fund, a special
3fund in the State Treasury which is hereby created, the net
4revenue realized for the preceding month from the 1% tax
5imposed under this Act on sales of food for human consumption
6which is to be consumed off the premises where it is sold
7(other than alcoholic beverages, soft drinks and food which has
8been prepared for immediate consumption) and prescription and
9nonprescription medicines, drugs, medical appliances, products
10classified as Class III medical devices by the United States
11Food and Drug Administration that are used for cancer treatment
12pursuant to a prescription, as well as any accessories and
13components related to those devices, and insulin, urine testing
14materials, syringes and needles used by diabetics.
15    Beginning January 1, 1990, each month the Department shall
16pay into the County and Mass Transit District Fund 4% of the
17net revenue realized for the preceding month from the 6.25%
18general rate on the selling price of tangible personal property
19which is purchased outside Illinois at retail from a retailer
20and which is titled or registered by an agency of this State's
21government.
22    Beginning January 1, 1990, each month the Department shall
23pay into the State and Local Sales Tax Reform Fund, a special
24fund in the State Treasury, 20% of the net revenue realized for
25the preceding month from the 6.25% general rate on the selling
26price of tangible personal property, other than tangible

 

 

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1personal property which is purchased outside Illinois at retail
2from a retailer and which is titled or registered by an agency
3of this State's government.
4    Beginning August 1, 2000, each month the Department shall
5pay into the State and Local Sales Tax Reform Fund 100% of the
6net revenue realized for the preceding month from the 1.25%
7rate on the selling price of motor fuel and gasohol. Beginning
8September 1, 2010, each month the Department shall pay into the
9State and Local Sales Tax Reform Fund 100% of the net revenue
10realized for the preceding month from the 1.25% rate on the
11selling price of sales tax holiday items.
12    Beginning January 1, 1990, each month the Department shall
13pay into the Local Government Tax Fund 16% of the net revenue
14realized for the preceding month from the 6.25% general rate on
15the selling price of tangible personal property which is
16purchased outside Illinois at retail from a retailer and which
17is titled or registered by an agency of this State's
18government.
19    Beginning October 1, 2009, each month the Department shall
20pay into the Capital Projects Fund an amount that is equal to
21an amount estimated by the Department to represent 80% of the
22net revenue realized for the preceding month from the sale of
23candy, grooming and hygiene products, and soft drinks that had
24been taxed at a rate of 1% prior to September 1, 2009 but that
25are now taxed at 6.25%.
26    Beginning July 1, 2011, each month the Department shall pay

 

 

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

 

 

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

 

 

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

 

 

SB3445- 65 -LRB100 20331 HLH 35618 b

1than the amount required to be transferred in such month from
2the Build Illinois Bond Account to the Build Illinois Bond
3Retirement and Interest Fund pursuant to Section 13 of the
4Build Illinois Bond Act, an amount equal to such deficiency
5shall be immediately paid from other moneys received by the
6Department pursuant to the Tax Acts to the Build Illinois Fund;
7provided, however, that any amounts paid to the Build Illinois
8Fund in any fiscal year pursuant to this sentence shall be
9deemed to constitute payments pursuant to clause (b) of the
10preceding sentence and shall reduce the amount otherwise
11payable for such fiscal year pursuant to clause (b) of the
12preceding sentence. The moneys received by the Department
13pursuant to this Act and required to be deposited into the
14Build Illinois Fund are subject to the pledge, claim and charge
15set forth in Section 12 of the Build Illinois Bond Act.
16    Subject to payment of amounts into the Build Illinois Fund
17as provided in the preceding paragraph or in any amendment
18thereto hereafter enacted, the following specified monthly
19installment of the amount requested in the certificate of the
20Chairman of the Metropolitan Pier and Exposition Authority
21provided under Section 8.25f of the State Finance Act, but not
22in excess of the sums designated as "Total Deposit", shall be
23deposited in the aggregate from collections under Section 9 of
24the Use Tax Act, Section 9 of the Service Use Tax Act, Section
259 of the Service Occupation Tax Act, and Section 3 of the
26Retailers' Occupation Tax Act into the McCormick Place

 

 

SB3445- 66 -LRB100 20331 HLH 35618 b

1Expansion Project Fund in the specified fiscal years.
2Fiscal YearTotal Deposit
31993         $0
41994 53,000,000
51995 58,000,000
61996 61,000,000
71997 64,000,000
81998 68,000,000
91999 71,000,000
102000 75,000,000
112001 80,000,000
122002 93,000,000
132003 99,000,000
142004103,000,000
152005108,000,000
162006113,000,000
172007119,000,000
182008126,000,000
192009132,000,000
202010139,000,000
212011146,000,000
222012153,000,000
232013161,000,000
242014170,000,000
252015179,000,000
262016189,000,000

 

 

SB3445- 67 -LRB100 20331 HLH 35618 b

12017199,000,000
22018210,000,000
32019221,000,000
42020233,000,000
52021246,000,000
62022260,000,000
72023275,000,000
82024 275,000,000
92025 275,000,000
102026 279,000,000
112027 292,000,000
122028 307,000,000
132029 322,000,000
142030 338,000,000
152031 350,000,000
162032 350,000,000
17and
18each fiscal year
19thereafter that bonds
20are outstanding under
21Section 13.2 of the
22Metropolitan Pier and
23Exposition Authority Act,
24but not after fiscal year 2060.
25    Beginning July 20, 1993 and in each month of each fiscal
26year thereafter, one-eighth of the amount requested in the

 

 

SB3445- 68 -LRB100 20331 HLH 35618 b

1certificate of the Chairman of the Metropolitan Pier and
2Exposition Authority for that fiscal year, less the amount
3deposited into the McCormick Place Expansion Project Fund by
4the State Treasurer in the respective month under subsection
5(g) of Section 13 of the Metropolitan Pier and Exposition
6Authority Act, plus cumulative deficiencies in the deposits
7required under this Section for previous months and years,
8shall be deposited into the McCormick Place Expansion Project
9Fund, until the full amount requested for the fiscal year, but
10not in excess of the amount specified above as "Total Deposit",
11has been deposited.
12    Subject to payment of amounts into the Build Illinois Fund
13and the McCormick Place Expansion Project Fund pursuant to the
14preceding paragraphs or in any amendments thereto hereafter
15enacted, beginning July 1, 1993 and ending on September 30,
162013, the Department shall each month pay into the Illinois Tax
17Increment Fund 0.27% of 80% of the net revenue realized for the
18preceding month from the 6.25% general rate on the selling
19price of tangible personal property.
20    Subject to payment of amounts into the Build Illinois Fund
21and the McCormick Place Expansion Project Fund pursuant to the
22preceding paragraphs or in any amendments thereto hereafter
23enacted, beginning with the receipt of the first report of
24taxes paid by an eligible business and continuing for a 25-year
25period, the Department shall each month pay into the Energy
26Infrastructure Fund 80% of the net revenue realized from the

 

 

SB3445- 69 -LRB100 20331 HLH 35618 b

16.25% general rate on the selling price of Illinois-mined coal
2that was sold to an eligible business. For purposes of this
3paragraph, the term "eligible business" means a new electric
4generating facility certified pursuant to Section 605-332 of
5the Department of Commerce and Economic Opportunity Law of the
6Civil Administrative Code of Illinois.
7    Subject to payment of amounts into the Build Illinois Fund,
8the McCormick Place Expansion Project Fund, the Illinois Tax
9Increment Fund, and the Energy Infrastructure Fund pursuant to
10the preceding paragraphs or in any amendments to this Section
11hereafter enacted, beginning on the first day of the first
12calendar month to occur on or after August 26, 2014 (the
13effective date of Public Act 98-1098), each month, from the
14collections made under Section 9 of the Use Tax Act, Section 9
15of the Service Use Tax Act, Section 9 of the Service Occupation
16Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
17the Department shall pay into the Tax Compliance and
18Administration Fund, to be used, subject to appropriation, to
19fund additional auditors and compliance personnel at the
20Department of Revenue, an amount equal to 1/12 of 5% of 80% of
21the cash receipts collected during the preceding fiscal year by
22the Audit Bureau of the Department under the Use Tax Act, the
23Service Use Tax Act, the Service Occupation Tax Act, the
24Retailers' Occupation Tax Act, and associated local occupation
25and use taxes administered by the Department.
26    Of the remainder of the moneys received by the Department

 

 

SB3445- 70 -LRB100 20331 HLH 35618 b

1pursuant to this Act, 75% thereof shall be paid into the State
2Treasury and 25% shall be reserved in a special account and
3used only for the transfer to the Common School Fund as part of
4the monthly transfer from the General Revenue Fund in
5accordance with Section 8a of the State Finance Act.
6    As soon as possible after the first day of each month, upon
7certification of the Department of Revenue, the Comptroller
8shall order transferred and the Treasurer shall transfer from
9the General Revenue Fund to the Motor Fuel Tax Fund an amount
10equal to 1.7% of 80% of the net revenue realized under this Act
11for the second preceding month. Beginning April 1, 2000, this
12transfer is no longer required and shall not be made.
13    Net revenue realized for a month shall be the revenue
14collected by the State pursuant to this Act, less the amount
15paid out during that month as refunds to taxpayers for
16overpayment of liability.
17    For greater simplicity of administration, manufacturers,
18importers and wholesalers whose products are sold at retail in
19Illinois by numerous retailers, and who wish to do so, may
20assume the responsibility for accounting and paying to the
21Department all tax accruing under this Act with respect to such
22sales, if the retailers who are affected do not make written
23objection to the Department to this arrangement.
24(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
2599-933, eff. 1-27-17; 100-303, eff. 8-24-17.)
 

 

 

SB3445- 71 -LRB100 20331 HLH 35618 b

1    (Text of Section after amendment by P.A. 100-363)
2    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
3and trailers that are required to be registered with an agency
4of this State, each retailer required or authorized to collect
5the tax imposed by this Act shall pay to the Department the
6amount of such tax (except as otherwise provided) at the time
7when he is required to file his return for the period during
8which such tax was collected, less a discount of 2.1% prior to
9January 1, 1990, and 1.75% on and after January 1, 1990, or $5
10per calendar year, whichever is greater, which is allowed to
11reimburse the retailer for expenses incurred in collecting the
12tax, keeping records, preparing and filing returns, remitting
13the tax and supplying data to the Department on request. In the
14case of retailers who report and pay the tax on a transaction
15by transaction basis, as provided in this Section, such
16discount shall be taken with each such tax remittance instead
17of when such retailer files his periodic return. The discount
18allowed under this Section is allowed only for returns that are
19filed in the manner required by this Act. The Department may
20disallow the discount for retailers whose certificate of
21registration is revoked at the time the return is filed, but
22only if the Department's decision to revoke the certificate of
23registration has become final. A retailer need not remit that
24part of any tax collected by him to the extent that he is
25required to remit and does remit the tax imposed by the
26Retailers' Occupation Tax Act, with respect to the sale of the

 

 

SB3445- 72 -LRB100 20331 HLH 35618 b

1same property.
2    Where such tangible personal property is sold under a
3conditional sales contract, or under any other form of sale
4wherein the payment of the principal sum, or a part thereof, is
5extended beyond the close of the period for which the return is
6filed, the retailer, in collecting the tax (except as to motor
7vehicles, watercraft, aircraft, and trailers that are required
8to be registered with an agency of this State), may collect for
9each tax return period, only the tax applicable to that part of
10the selling price actually received during such tax return
11period.
12    Except as provided in this Section, on or before the
13twentieth day of each calendar month, such retailer shall file
14a return for the preceding calendar month. Such return shall be
15filed on forms prescribed by the Department and shall furnish
16such information as the Department may reasonably require. On
17and after January 1, 2018, except for returns for motor
18vehicles, watercraft, aircraft, and trailers that are required
19to be registered with an agency of this State, with respect to
20retailers whose annual gross receipts average $20,000 or more,
21all returns required to be filed pursuant to this Act shall be
22filed electronically. Retailers who demonstrate that they do
23not have access to the Internet or demonstrate hardship in
24filing electronically may petition the Department to waive the
25electronic filing requirement.
26    The Department may require returns to be filed on a

 

 

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1quarterly basis. If so required, a return for each calendar
2quarter shall be filed on or before the twentieth day of the
3calendar month following the end of such calendar quarter. The
4taxpayer shall also file a return with the Department for each
5of the first two months of each calendar quarter, on or before
6the twentieth day of the following calendar month, stating:
7        1. The name of the seller;
8        2. The address of the principal place of business from
9    which he engages in the business of selling tangible
10    personal property at retail in this State;
11        3. The total amount of taxable receipts received by him
12    during the preceding calendar month from sales of tangible
13    personal property by him during such preceding calendar
14    month, including receipts from charge and time sales, but
15    less all deductions allowed by law;
16        4. The amount of credit provided in Section 2d of this
17    Act;
18        5. The amount of tax due;
19        5-5. The signature of the taxpayer; and
20        6. Such other reasonable information as the Department
21    may require.
22    If a taxpayer fails to sign a return within 30 days after
23the proper notice and demand for signature by the Department,
24the return shall be considered valid and any amount shown to be
25due on the return shall be deemed assessed.
26    Beginning October 1, 1993, a taxpayer who has an average

 

 

SB3445- 74 -LRB100 20331 HLH 35618 b

1monthly tax liability of $150,000 or more shall make all
2payments required by rules of the Department by electronic
3funds transfer. Beginning October 1, 1994, a taxpayer who has
4an average monthly tax liability of $100,000 or more shall make
5all payments required by rules of the Department by electronic
6funds transfer. Beginning October 1, 1995, a taxpayer who has
7an average monthly tax liability of $50,000 or more shall make
8all payments required by rules of the Department by electronic
9funds transfer. Beginning October 1, 2000, a taxpayer who has
10an annual tax liability of $200,000 or more shall make all
11payments required by rules of the Department by electronic
12funds transfer. The term "annual tax liability" shall be the
13sum of the taxpayer's liabilities under this Act, and under all
14other State and local occupation and use tax laws administered
15by the Department, for the immediately preceding calendar year.
16The term "average monthly tax liability" means the sum of the
17taxpayer's liabilities under this Act, and under all other
18State and local occupation and use tax laws administered by the
19Department, for the immediately preceding calendar year
20divided by 12. Beginning on October 1, 2002, a taxpayer who has
21a tax liability in the amount set forth in subsection (b) of
22Section 2505-210 of the Department of Revenue Law shall make
23all payments required by rules of the Department by electronic
24funds transfer.
25    Before August 1 of each year beginning in 1993, the
26Department shall notify all taxpayers required to make payments

 

 

SB3445- 75 -LRB100 20331 HLH 35618 b

1by electronic funds transfer. All taxpayers required to make
2payments by electronic funds transfer shall make those payments
3for a minimum of one year beginning on October 1.
4    Any taxpayer not required to make payments by electronic
5funds transfer may make payments by electronic funds transfer
6with the permission of the Department.
7    All taxpayers required to make payment by electronic funds
8transfer and any taxpayers authorized to voluntarily make
9payments by electronic funds transfer shall make those payments
10in the manner authorized by the Department.
11    The Department shall adopt such rules as are necessary to
12effectuate a program of electronic funds transfer and the
13requirements of this Section.
14    Before October 1, 2000, if the taxpayer's average monthly
15tax liability to the Department under this Act, the Retailers'
16Occupation Tax Act, the Service Occupation Tax Act, the Service
17Use Tax Act was $10,000 or more during the preceding 4 complete
18calendar quarters, he shall file a return with the Department
19each month by the 20th day of the month next following the
20month during which such tax liability is incurred and shall
21make payments to the Department on or before the 7th, 15th,
2222nd and last day of the month during which such liability is
23incurred. On and after October 1, 2000, if the taxpayer's
24average monthly tax liability to the Department under this Act,
25the Retailers' Occupation Tax Act, the Service Occupation Tax
26Act, and the Service Use Tax Act was $20,000 or more during the

 

 

SB3445- 76 -LRB100 20331 HLH 35618 b

1preceding 4 complete calendar quarters, he shall file a return
2with the Department each month by the 20th day of the month
3next following the month during which such tax liability is
4incurred and shall make payment to the Department on or before
5the 7th, 15th, 22nd and last day of the month during which such
6liability is incurred. If the month during which such tax
7liability is incurred began prior to January 1, 1985, each
8payment shall be in an amount equal to 1/4 of the taxpayer's
9actual liability for the month or an amount set by the
10Department not to exceed 1/4 of the average monthly liability
11of the taxpayer to the Department for the preceding 4 complete
12calendar quarters (excluding the month of highest liability and
13the month of lowest liability in such 4 quarter period). If the
14month during which such tax liability is incurred begins on or
15after January 1, 1985, and prior to January 1, 1987, each
16payment shall be in an amount equal to 22.5% of the taxpayer's
17actual liability for the month or 27.5% of the taxpayer's
18liability for the same calendar month of the preceding year. If
19the month during which such tax liability is incurred begins on
20or after January 1, 1987, and prior to January 1, 1988, each
21payment shall be in an amount equal to 22.5% of the taxpayer's
22actual liability for the month or 26.25% of the taxpayer's
23liability for the same calendar month of the preceding year. If
24the month during which such tax liability is incurred begins on
25or after January 1, 1988, and prior to January 1, 1989, or
26begins on or after January 1, 1996, each payment shall be in an

 

 

SB3445- 77 -LRB100 20331 HLH 35618 b

1amount equal to 22.5% of the taxpayer's actual liability for
2the month or 25% of the taxpayer's liability for the same
3calendar month of the preceding year. If the month during which
4such tax liability is incurred begins on or after January 1,
51989, and prior to January 1, 1996, each payment shall be in an
6amount equal to 22.5% of the taxpayer's actual liability for
7the month or 25% of the taxpayer's liability for the same
8calendar month of the preceding year or 100% of the taxpayer's
9actual liability for the quarter monthly reporting period. The
10amount of such quarter monthly payments shall be credited
11against the final tax liability of the taxpayer's return for
12that month. Before October 1, 2000, once applicable, the
13requirement of the making of quarter monthly payments to the
14Department shall continue until such taxpayer's average
15monthly liability to the Department during the preceding 4
16complete calendar quarters (excluding the month of highest
17liability and the month of lowest liability) is less than
18$9,000, or until such taxpayer's average monthly liability to
19the Department as computed for each calendar quarter of the 4
20preceding complete calendar quarter period is less than
21$10,000. However, if a taxpayer can show the Department that a
22substantial change in the taxpayer's business has occurred
23which causes the taxpayer to anticipate that his average
24monthly tax liability for the reasonably foreseeable future
25will fall below the $10,000 threshold stated above, then such
26taxpayer may petition the Department for change in such

 

 

SB3445- 78 -LRB100 20331 HLH 35618 b

1taxpayer's reporting status. On and after October 1, 2000, once
2applicable, the requirement of the making of quarter monthly
3payments to the Department shall continue until such taxpayer's
4average monthly liability to the Department during the
5preceding 4 complete calendar quarters (excluding the month of
6highest liability and the month of lowest liability) is less
7than $19,000 or until such taxpayer's average monthly liability
8to the Department as computed for each calendar quarter of the
94 preceding complete calendar quarter period is less than
10$20,000. However, if a taxpayer can show the Department that a
11substantial change in the taxpayer's business has occurred
12which causes the taxpayer to anticipate that his average
13monthly tax liability for the reasonably foreseeable future
14will fall below the $20,000 threshold stated above, then such
15taxpayer may petition the Department for a change in such
16taxpayer's reporting status. The Department shall change such
17taxpayer's reporting status unless it finds that such change is
18seasonal in nature and not likely to be long term. If any such
19quarter monthly payment is not paid at the time or in the
20amount required by this Section, then the taxpayer shall be
21liable for penalties and interest on the difference between the
22minimum amount due and the amount of such quarter monthly
23payment actually and timely paid, except insofar as the
24taxpayer has previously made payments for that month to the
25Department in excess of the minimum payments previously due as
26provided in this Section. The Department shall make reasonable

 

 

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

 

 

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1taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
2be reduced by 2.1% or 1.75% of the difference between the
3credit taken and that actually due, and the taxpayer shall be
4liable for penalties and interest on such difference.
5    If the retailer is otherwise required to file a monthly
6return and if the retailer's average monthly tax liability to
7the Department does not exceed $200, the Department may
8authorize his returns to be filed on a quarter annual basis,
9with the return for January, February, and March of a given
10year being due by April 20 of such year; with the return for
11April, May and June of a given year being due by July 20 of such
12year; with the return for July, August and September of a given
13year being due by October 20 of such year, and with the return
14for October, November and December of a given year being due by
15January 20 of the following year.
16    If the retailer is otherwise required to file a monthly or
17quarterly return and if the retailer's average monthly tax
18liability to the Department does not exceed $50, the Department
19may authorize his returns to be filed on an annual basis, with
20the return for a given year being due by January 20 of the
21following year.
22    Such quarter annual and annual returns, as to form and
23substance, shall be subject to the same requirements as monthly
24returns.
25    Notwithstanding any other provision in this Act concerning
26the time within which a retailer may file his return, in the

 

 

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1case of any retailer who ceases to engage in a kind of business
2which makes him responsible for filing returns under this Act,
3such retailer shall file a final return under this Act with the
4Department not more than one month after discontinuing such
5business.
6    In addition, with respect to motor vehicles, watercraft,
7aircraft, and trailers that are required to be registered with
8an agency of this State, except as otherwise provided in this
9Section, every retailer selling this kind of tangible personal
10property shall file, with the Department, upon a form to be
11prescribed and supplied by the Department, a separate return
12for each such item of tangible personal property which the
13retailer sells, except that if, in the same transaction, (i) a
14retailer of aircraft, watercraft, motor vehicles or trailers
15transfers more than one aircraft, watercraft, motor vehicle or
16trailer to another aircraft, watercraft, motor vehicle or
17trailer retailer for the purpose of resale or (ii) a retailer
18of aircraft, watercraft, motor vehicles, or trailers transfers
19more than one aircraft, watercraft, motor vehicle, or trailer
20to a purchaser for use as a qualifying rolling stock as
21provided in Section 3-55 of this Act, then that seller may
22report the transfer of all the aircraft, watercraft, motor
23vehicles or trailers involved in that transaction to the
24Department on the same uniform invoice-transaction reporting
25return form. For purposes of this Section, "watercraft" means a
26Class 2, Class 3, or Class 4 watercraft as defined in Section

 

 

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

 

 

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

 

 

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1claimed to be the fact); the place and date of the sale, a
2sufficient identification of the property sold, and such other
3information as the Department may reasonably require.
4    Such transaction reporting return shall be filed not later
5than 20 days after the date of delivery of the item that is
6being sold, but may be filed by the retailer at any time sooner
7than that if he chooses to do so. The transaction reporting
8return and tax remittance or proof of exemption from the tax
9that is imposed by this Act may be transmitted to the
10Department by way of the State agency with which, or State
11officer with whom, the tangible personal property must be
12titled or registered (if titling or registration is required)
13if the Department and such agency or State officer determine
14that this procedure will expedite the processing of
15applications for title or registration.
16    With each such transaction reporting return, the retailer
17shall remit the proper amount of tax due (or shall submit
18satisfactory evidence that the sale is not taxable if that is
19the case), to the Department or its agents, whereupon the
20Department shall issue, in the purchaser's name, a tax receipt
21(or a certificate of exemption if the Department is satisfied
22that the particular sale is tax exempt) which such purchaser
23may submit to the agency with which, or State officer with
24whom, he must title or register the tangible personal property
25that is involved (if titling or registration is required) in
26support of such purchaser's application for an Illinois

 

 

SB3445- 85 -LRB100 20331 HLH 35618 b

1certificate or other evidence of title or registration to such
2tangible personal property.
3    No retailer's failure or refusal to remit tax under this
4Act precludes a user, who has paid the proper tax to the
5retailer, from obtaining his certificate of title or other
6evidence of title or registration (if titling or registration
7is required) upon satisfying the Department that such user has
8paid the proper tax (if tax is due) to the retailer. The
9Department shall adopt appropriate rules to carry out the
10mandate of this paragraph.
11    If the user who would otherwise pay tax to the retailer
12wants the transaction reporting return filed and the payment of
13tax or proof of exemption made to the Department before the
14retailer is willing to take these actions and such user has not
15paid the tax to the retailer, such user may certify to the fact
16of such delay by the retailer, and may (upon the Department
17being satisfied of the truth of such certification) transmit
18the information required by the transaction reporting return
19and the remittance for tax or proof of exemption directly to
20the Department and obtain his tax receipt or exemption
21determination, in which event the transaction reporting return
22and tax remittance (if a tax payment was required) shall be
23credited by the Department to the proper retailer's account
24with the Department, but without the 2.1% or 1.75% discount
25provided for in this Section being allowed. When the user pays
26the tax directly to the Department, he shall pay the tax in the

 

 

SB3445- 86 -LRB100 20331 HLH 35618 b

1same amount and in the same form in which it would be remitted
2if the tax had been remitted to the Department by the retailer.
3    Where a retailer collects the tax with respect to the
4selling price of tangible personal property which he sells and
5the purchaser thereafter returns such tangible personal
6property and the retailer refunds the selling price thereof to
7the purchaser, such retailer shall also refund, to the
8purchaser, the tax so collected from the purchaser. When filing
9his return for the period in which he refunds such tax to the
10purchaser, the retailer may deduct the amount of the tax so
11refunded by him to the purchaser from any other use tax which
12such retailer may be required to pay or remit to the
13Department, as shown by such return, if the amount of the tax
14to be deducted was previously remitted to the Department by
15such retailer. If the retailer has not previously remitted the
16amount of such tax to the Department, he is entitled to no
17deduction under this Act upon refunding such tax to the
18purchaser.
19    Any retailer filing a return under this Section shall also
20include (for the purpose of paying tax thereon) the total tax
21covered by such return upon the selling price of tangible
22personal property purchased by him at retail from a retailer,
23but as to which the tax imposed by this Act was not collected
24from the retailer filing such return, and such retailer shall
25remit the amount of such tax to the Department when filing such
26return.

 

 

SB3445- 87 -LRB100 20331 HLH 35618 b

1    If experience indicates such action to be practicable, the
2Department may prescribe and furnish a combination or joint
3return which will enable retailers, who are required to file
4returns hereunder and also under the Retailers' Occupation Tax
5Act, to furnish all the return information required by both
6Acts on the one form.
7    Where the retailer has more than one business registered
8with the Department under separate registration under this Act,
9such retailer may not file each return that is due as a single
10return covering all such registered businesses, but shall file
11separate returns for each such registered business.
12    Beginning January 1, 1990, each month the Department shall
13pay into the State and Local Sales Tax Reform Fund, a special
14fund in the State Treasury which is hereby created, the net
15revenue realized for the preceding month from the 1% tax
16imposed under this Act on sales of food for human consumption
17which is to be consumed off the premises where it is sold
18(other than alcoholic beverages, soft drinks and food which has
19been prepared for immediate consumption) and prescription and
20nonprescription medicines, drugs, medical appliances, products
21classified as Class III medical devices by the United States
22Food and Drug Administration that are used for cancer treatment
23pursuant to a prescription, as well as any accessories and
24components related to those devices, and insulin, urine testing
25materials, syringes and needles used by diabetics.
26    Beginning January 1, 1990, each month the Department shall

 

 

SB3445- 88 -LRB100 20331 HLH 35618 b

1pay into the County and Mass Transit District Fund 4% of the
2net revenue realized for the preceding month from the 6.25%
3general rate on the selling price of tangible personal property
4which is purchased outside Illinois at retail from a retailer
5and which is titled or registered by an agency of this State's
6government.
7    Beginning January 1, 1990, each month the Department shall
8pay into the State and Local Sales Tax Reform Fund, a special
9fund in the State Treasury, 20% of the net revenue realized for
10the preceding month from the 6.25% general rate on the selling
11price of tangible personal property, other than tangible
12personal property which is purchased outside Illinois at retail
13from a retailer and which is titled or registered by an agency
14of this State's government.
15    Beginning August 1, 2000, each month the Department shall
16pay into the State and Local Sales Tax Reform Fund 100% of the
17net revenue realized for the preceding month from the 1.25%
18rate on the selling price of motor fuel and gasohol. Beginning
19September 1, 2010, each month the Department shall pay into the
20State and Local Sales Tax Reform Fund 100% of the net revenue
21realized for the preceding month from the 1.25% rate on the
22selling price of sales tax holiday items.
23    Beginning January 1, 1990, each month the Department shall
24pay into the Local Government Tax Fund 16% of the net revenue
25realized for the preceding month from the 6.25% general rate on
26the selling price of tangible personal property which is

 

 

SB3445- 89 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 90 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 91 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 92 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 93 -LRB100 20331 HLH 35618 b

1    Subject to payment of amounts into the Build Illinois Fund
2as provided in the preceding paragraph or in any amendment
3thereto hereafter enacted, the following specified monthly
4installment of the amount requested in the certificate of the
5Chairman of the Metropolitan Pier and Exposition Authority
6provided under Section 8.25f of the State Finance Act, but not
7in excess of the sums designated as "Total Deposit", shall be
8deposited in the aggregate from collections under Section 9 of
9the Use Tax Act, Section 9 of the Service Use Tax Act, Section
109 of the Service Occupation Tax Act, and Section 3 of the
11Retailers' Occupation Tax Act into the McCormick Place
12Expansion Project Fund in the specified fiscal years.
13Fiscal YearTotal Deposit
141993         $0
151994 53,000,000
161995 58,000,000
171996 61,000,000
181997 64,000,000
191998 68,000,000
201999 71,000,000
212000 75,000,000
222001 80,000,000
232002 93,000,000
242003 99,000,000
252004103,000,000
262005108,000,000

 

 

SB3445- 94 -LRB100 20331 HLH 35618 b

12006113,000,000
22007119,000,000
32008126,000,000
42009132,000,000
52010139,000,000
62011146,000,000
72012153,000,000
82013161,000,000
92014170,000,000
102015179,000,000
112016189,000,000
122017199,000,000
132018210,000,000
142019221,000,000
152020233,000,000
162021246,000,000
172022260,000,000
182023275,000,000
192024 275,000,000
202025 275,000,000
212026 279,000,000
222027 292,000,000
232028 307,000,000
242029 322,000,000
252030 338,000,000
262031 350,000,000

 

 

SB3445- 95 -LRB100 20331 HLH 35618 b

12032 350,000,000
2and
3each fiscal year
4thereafter that bonds
5are outstanding under
6Section 13.2 of the
7Metropolitan Pier and
8Exposition Authority Act,
9but not after fiscal year 2060.
10    Beginning July 20, 1993 and in each month of each fiscal
11year thereafter, one-eighth of the amount requested in the
12certificate of the Chairman of the Metropolitan Pier and
13Exposition Authority for that fiscal year, less the amount
14deposited into the McCormick Place Expansion Project Fund by
15the State Treasurer in the respective month under subsection
16(g) of Section 13 of the Metropolitan Pier and Exposition
17Authority Act, plus cumulative deficiencies in the deposits
18required under this Section for previous months and years,
19shall be deposited into the McCormick Place Expansion Project
20Fund, until the full amount requested for the fiscal year, but
21not in excess of the amount specified above as "Total Deposit",
22has been deposited.
23    Subject to payment of amounts into the Build Illinois Fund
24and the McCormick Place Expansion Project Fund pursuant to the
25preceding paragraphs or in any amendments thereto hereafter
26enacted, beginning July 1, 1993 and ending on September 30,

 

 

SB3445- 96 -LRB100 20331 HLH 35618 b

12013, the Department shall each month pay into the Illinois Tax
2Increment Fund 0.27% of 80% of the net revenue realized for the
3preceding month from the 6.25% general rate on the selling
4price of tangible personal property.
5    Subject to payment of amounts into the Build Illinois Fund
6and the McCormick Place Expansion Project Fund pursuant to the
7preceding paragraphs or in any amendments thereto hereafter
8enacted, beginning with the receipt of the first report of
9taxes paid by an eligible business and continuing for a 25-year
10period, the Department shall each month pay into the Energy
11Infrastructure Fund 80% of the net revenue realized from the
126.25% general rate on the selling price of Illinois-mined coal
13that was sold to an eligible business. For purposes of this
14paragraph, the term "eligible business" means a new electric
15generating facility certified pursuant to Section 605-332 of
16the Department of Commerce and Economic Opportunity Law of the
17Civil Administrative Code of Illinois.
18    Subject to payment of amounts into the Build Illinois Fund,
19the McCormick Place Expansion Project Fund, the Illinois Tax
20Increment Fund, and the Energy Infrastructure Fund pursuant to
21the preceding paragraphs or in any amendments to this Section
22hereafter enacted, beginning on the first day of the first
23calendar month to occur on or after August 26, 2014 (the
24effective date of Public Act 98-1098), each month, from the
25collections made under Section 9 of the Use Tax Act, Section 9
26of the Service Use Tax Act, Section 9 of the Service Occupation

 

 

SB3445- 97 -LRB100 20331 HLH 35618 b

1Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
2the Department shall pay into the Tax Compliance and
3Administration Fund, to be used, subject to appropriation, to
4fund additional auditors and compliance personnel at the
5Department of Revenue, an amount equal to 1/12 of 5% of 80% of
6the cash receipts collected during the preceding fiscal year by
7the Audit Bureau of the Department under the Use Tax Act, the
8Service Use Tax Act, the Service Occupation Tax Act, the
9Retailers' Occupation Tax Act, and associated local occupation
10and use taxes administered by the Department.
11    Subject to payments of amounts into the Build Illinois
12Fund, the McCormick Place Expansion Project Fund, the Illinois
13Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
14Compliance and Administration Fund as provided in this Section,
15beginning on July 1, 2018 the Department shall pay each month
16into the Downstate Public Transportation Fund the moneys
17required to be so paid under Section 2-3 of the Downstate
18Public Transportation Act.
19    Of the remainder of the moneys received by the Department
20pursuant to this Act, 75% thereof shall be paid into the State
21Treasury and 25% shall be reserved in a special account and
22used only for the transfer to the Common School Fund as part of
23the monthly transfer from the General Revenue Fund in
24accordance with Section 8a of the State Finance Act.
25    As soon as possible after the first day of each month, upon
26certification of the Department of Revenue, the Comptroller

 

 

SB3445- 98 -LRB100 20331 HLH 35618 b

1shall order transferred and the Treasurer shall transfer from
2the General Revenue Fund to the Motor Fuel Tax Fund an amount
3equal to 1.7% of 80% of the net revenue realized under this Act
4for the second preceding month. Beginning April 1, 2000, this
5transfer is no longer required and shall not be made.
6    Net revenue realized for a month shall be the revenue
7collected by the State pursuant to this Act, less the amount
8paid out during that month as refunds to taxpayers for
9overpayment of liability.
10    For greater simplicity of administration, manufacturers,
11importers and wholesalers whose products are sold at retail in
12Illinois by numerous retailers, and who wish to do so, may
13assume the responsibility for accounting and paying to the
14Department all tax accruing under this Act with respect to such
15sales, if the retailers who are affected do not make written
16objection to the Department to this arrangement.
17(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
1899-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.
197-1-18; revised 10-20-17.)
 
20    (35 ILCS 105/10)  (from Ch. 120, par. 439.10)
21    Sec. 10. Except as to motor vehicles, aircraft, watercraft,
22and trailers, and except as to cigarettes as defined in the
23Cigarette Use Tax Act, when tangible personal property is
24purchased from a retailer for use in this State by a purchaser
25who did not pay the tax imposed by this Act to the retailer,

 

 

SB3445- 99 -LRB100 20331 HLH 35618 b

1and who does not file returns with the Department as a retailer
2under Section 9 of this Act, such purchaser (by the last day of
3the month following the calendar month in which such purchaser
4makes any payment upon the selling price of such property)
5shall, except as otherwise provided in this Section, file a
6return with the Department and pay the tax upon that portion of
7the selling price so paid by the purchaser during the preceding
8calendar month. When tangible personal property, other than
9motor vehicles and trailers, is purchased by a lessor, under a
10lease for one year or longer, executed or in effect at the time
11of purchase to an interstate carrier for hire, who did not pay
12the tax imposed by this Act to the retailer, such lessor (by
13the last day of the month following the calendar month in which
14such property reverts to the use of such lessor) shall file a
15return with the Department and pay the tax upon the fair market
16value of such property on the date of such reversion. However,
17in determining the fair market value at the time of reversion,
18the fair market value of such property shall not exceed the
19original purchase price of the property that was paid by the
20lessor at the time of purchase. Such return shall be filed on a
21form prescribed by the Department and shall contain such
22information as the Department may reasonably require. Such
23return and payment from the purchaser shall be submitted to the
24Department sooner than the last day of the month after the
25month in which the purchase is made to the extent that that may
26be necessary in order to secure the title to a motor vehicle or

 

 

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1the certificate of registration for an aircraft. However,
2except as to motor vehicles and aircraft, and except as to
3cigarettes as defined in the Cigarette Use Tax Act, if the
4purchaser's annual use tax liability does not exceed $600, the
5purchaser may file the return on an annual basis on or before
6April 15th of the year following the year use tax liability was
7incurred. Individual purchasers with an annual use tax
8liability that does not exceed $600 may, in lieu of the filing
9and payment requirements in this Section, file and pay in
10compliance with Section 502.1 of the Illinois Income Tax Act.
11    If cigarettes, as defined in the Cigarette Use Tax Act, are
12purchased from a retailer for use in this State by a purchaser
13who did not pay the tax imposed by this Act to the retailer,
14and who does not file returns with the Department as a retailer
15under Section 9 of this Act, such purchaser must, within 30
16days after acquiring the cigarettes, file a return with the
17Department and pay the tax upon that portion of the selling
18price so paid by the purchaser for the cigarettes.
19    In addition with respect to motor vehicles, aircraft,
20watercraft, and trailers, a purchaser of such tangible personal
21property for use in this State, who purchases such tangible
22personal property from an out-of-state retailer, shall file
23with the Department, upon a form to be prescribed and supplied
24by the Department, a return for each such item of tangible
25personal property purchased, except that if, in the same
26transaction, (i) a purchaser of motor vehicles, aircraft,

 

 

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1watercraft, or trailers who is a retailer of motor vehicles,
2aircraft, watercraft, or trailers purchases more than one motor
3vehicle, aircraft, watercraft, or trailer for the purpose of
4resale or (ii) a purchaser of motor vehicles, aircraft,
5watercraft, or trailers purchases more than one motor vehicle,
6aircraft, watercraft, or trailer for use as qualifying rolling
7stock as provided in Section 3-55 of this Act, then the
8purchaser may report the purchase of all motor vehicles,
9aircraft, watercraft, or trailers involved in that transaction
10to the Department on a single return prescribed by the
11Department. Such return in the case of motor vehicles and
12aircraft must show the name and address of the seller, the
13name, address of purchaser, the amount of the selling price
14including the amount allowed by the retailer for traded in
15property, if any; the amount allowed by the retailer for the
16traded-in tangible personal property, if any, to the extent to
17which Section 2 of this Act allows an exemption for the value
18of traded-in property; the balance payable after deducting such
19trade-in allowance from the total selling price; the amount of
20tax due from the purchaser with respect to such transaction;
21the amount of tax collected from the purchaser by the retailer
22on such transaction (or satisfactory evidence that such tax is
23not due in that particular instance if that is claimed to be
24the fact); the place and date of the sale, a sufficient
25identification of the property sold, and such other information
26as the Department may reasonably require.

 

 

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1    Such return shall be filed not later than 30 days after
2such motor vehicle or aircraft is brought into this State for
3use.
4    For purposes of this Section, "watercraft" means a Class 2,
5Class 3, or Class 4 watercraft as defined in Section 3-2 of the
6Boat Registration and Safety Act, a personal watercraft, or any
7boat equipped with an inboard motor.
8    The return and tax remittance or proof of exemption from
9the tax that is imposed by this Act may be transmitted to the
10Department by way of the State agency with which, or State
11officer with whom, the tangible personal property must be
12titled or registered (if titling or registration is required)
13if the Department and such agency or State officer determine
14that this procedure will expedite the processing of
15applications for title or registration.
16    With each such return, the purchaser shall remit the proper
17amount of tax due (or shall submit satisfactory evidence that
18the sale is not taxable if that is the case), to the Department
19or its agents, whereupon the Department shall issue, in the
20purchaser's name, a tax receipt (or a certificate of exemption
21if the Department is satisfied that the particular sale is tax
22exempt) which such purchaser may submit to the agency with
23which, or State officer with whom, he must title or register
24the tangible personal property that is involved (if titling or
25registration is required) in support of such purchaser's
26application for an Illinois certificate or other evidence of

 

 

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1title or registration to such tangible personal property.
2    When a purchaser pays a tax imposed by this Act directly to
3the Department, the Department (upon request therefor from such
4purchaser) shall issue an appropriate receipt to such purchaser
5showing that he has paid such tax to the Department. Such
6receipt shall be sufficient to relieve the purchaser from
7further liability for the tax to which such receipt may refer.
8    A user who is liable to pay use tax directly to the
9Department only occasionally and not on a frequently recurring
10basis, and who is not required to file returns with the
11Department as a retailer under Section 9 of this Act, or under
12the "Retailers' Occupation Tax Act", or as a registrant with
13the Department under the "Service Occupation Tax Act" or the
14"Service Use Tax Act", need not register with the Department.
15However, if such a user has a frequently recurring direct use
16tax liability to pay to the Department, such user shall be
17required to register with the Department on forms prescribed by
18the Department and to obtain and display a certificate of
19registration from the Department. In that event, all of the
20provisions of Section 9 of this Act concerning the filing of
21regular monthly, quarterly or annual tax returns and all of the
22provisions of Section 2a of the "Retailers' Occupation Tax Act"
23concerning the requirements for registrants to post bond or
24other security with the Department, as the provisions of such
25sections now exist or may hereafter be amended, shall apply to
26such users to the same extent as if such provisions were

 

 

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1included herein.
2(Source: P.A. 100-321, eff. 8-24-17.)
 
3    Section 35. The Service Use Tax Act is amended by changing
4Sections 3-5, 3-5.5, and 9 as follows:
 
5    (35 ILCS 110/3-5)
6    Sec. 3-5. Exemptions. Use of the following tangible
7personal property is exempt from the tax imposed by this Act:
8    (1) Personal property purchased from a corporation,
9society, association, foundation, institution, or
10organization, other than a limited liability company, that is
11organized and operated as a not-for-profit service enterprise
12for the benefit of persons 65 years of age or older if the
13personal property was not purchased by the enterprise for the
14purpose of resale by the enterprise.
15    (2) Personal property purchased by a non-profit Illinois
16county fair association for use in conducting, operating, or
17promoting the county fair.
18    (3) Personal property purchased by a not-for-profit arts or
19cultural organization that establishes, by proof required by
20the Department by rule, that it has received an exemption under
21Section 501(c)(3) of the Internal Revenue Code and that is
22organized and operated primarily for the presentation or
23support of arts or cultural programming, activities, or
24services. These organizations include, but are not limited to,

 

 

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1music and dramatic arts organizations such as symphony
2orchestras and theatrical groups, arts and cultural service
3organizations, local arts councils, visual arts organizations,
4and media arts organizations. On and after the effective date
5of this amendatory Act of the 92nd General Assembly, however,
6an entity otherwise eligible for this exemption shall not make
7tax-free purchases unless it has an active identification
8number issued by the Department.
9    (4) Legal tender, currency, medallions, or gold or silver
10coinage issued by the State of Illinois, the government of the
11United States of America, or the government of any foreign
12country, and bullion.
13    (5) Until July 1, 2003 and beginning again on September 1,
142004 through August 30, 2014, graphic arts machinery and
15equipment, including repair and replacement parts, both new and
16used, and including that manufactured on special order or
17purchased for lease, certified by the purchaser to be used
18primarily for graphic arts production. Equipment includes
19chemicals or chemicals acting as catalysts but only if the
20chemicals or chemicals acting as catalysts effect a direct and
21immediate change upon a graphic arts product. Beginning on July
221, 2017, graphic arts machinery and equipment is included in
23the manufacturing and assembling machinery and equipment
24exemption under Section 2 of this Act.
25    (6) Personal property purchased from a teacher-sponsored
26student organization affiliated with an elementary or

 

 

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

 

 

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

 

 

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

 

 

SB3445- 109 -LRB100 20331 HLH 35618 b

1hauling, processing, maintenance, and reclamation equipment,
2including replacement parts and equipment, and including
3equipment purchased for lease, but excluding motor vehicles
4required to be registered under the Illinois Vehicle Code. The
5changes made to this Section by Public Act 97-767 apply on and
6after July 1, 2003, but no claim for credit or refund is
7allowed on or after August 16, 2013 (the effective date of
8Public Act 98-456) for such taxes paid during the period
9beginning July 1, 2003 and ending on August 16, 2013 (the
10effective date of Public Act 98-456).
11    (13) Semen used for artificial insemination of livestock
12for direct agricultural production.
13    (14) Horses, or interests in horses, registered with and
14meeting the requirements of any of the Arabian Horse Club
15Registry of America, Appaloosa Horse Club, American Quarter
16Horse Association, United States Trotting Association, or
17Jockey Club, as appropriate, used for purposes of breeding or
18racing for prizes. This item (14) is exempt from the provisions
19of Section 3-75, and the exemption provided for under this item
20(14) applies for all periods beginning May 30, 1995, but no
21claim for credit or refund is allowed on or after the effective
22date of this amendatory Act of the 95th General Assembly for
23such taxes paid during the period beginning May 30, 2000 and
24ending on the effective date of this amendatory Act of the 95th
25General Assembly.
26    (15) Computers and communications equipment utilized for

 

 

SB3445- 110 -LRB100 20331 HLH 35618 b

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

 

 

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

 

 

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1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is used in the
3performance of infrastructure repairs in this State, including
4but not limited to municipal roads and streets, access roads,
5bridges, sidewalks, waste disposal systems, water and sewer
6line extensions, water distribution and purification
7facilities, storm water drainage and retention facilities, and
8sewage treatment facilities, resulting from a State or
9federally declared disaster in Illinois or bordering Illinois
10when such repairs are initiated on facilities located in the
11declared disaster area within 6 months after the disaster.
12    (19) Beginning July 1, 1999, game or game birds purchased
13at a "game breeding and hunting preserve area" as that term is
14used in the Wildlife Code. This paragraph is exempt from the
15provisions of Section 3-75.
16    (20) A motor vehicle, as that term is defined in Section
171-146 of the Illinois Vehicle Code, that is donated to a
18corporation, limited liability company, society, association,
19foundation, or institution that is determined by the Department
20to be organized and operated exclusively for educational
21purposes. For purposes of this exemption, "a corporation,
22limited liability company, society, association, foundation,
23or institution organized and operated exclusively for
24educational purposes" means all tax-supported public schools,
25private schools that offer systematic instruction in useful
26branches of learning by methods common to public schools and

 

 

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1that compare favorably in their scope and intensity with the
2course of study presented in tax-supported schools, and
3vocational or technical schools or institutes organized and
4operated exclusively to provide a course of study of not less
5than 6 weeks duration and designed to prepare individuals to
6follow a trade or to pursue a manual, technical, mechanical,
7industrial, business, or commercial occupation.
8    (21) Beginning January 1, 2000, personal property,
9including food, purchased through fundraising events for the
10benefit of a public or private elementary or secondary school,
11a group of those schools, or one or more school districts if
12the events are sponsored by an entity recognized by the school
13district that consists primarily of volunteers and includes
14parents and teachers of the school children. This paragraph
15does not apply to fundraising events (i) for the benefit of
16private home instruction or (ii) for which the fundraising
17entity purchases the personal property sold at the events from
18another individual or entity that sold the property for the
19purpose of resale by the fundraising entity and that profits
20from the sale to the fundraising entity. This paragraph is
21exempt from the provisions of Section 3-75.
22    (22) Beginning January 1, 2000 and through December 31,
232001, new or used automatic vending machines that prepare and
24serve hot food and beverages, including coffee, soup, and other
25items, and replacement parts for these machines. Beginning
26January 1, 2002 and through June 30, 2003, machines and parts

 

 

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

 

 

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

 

 

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

 

 

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1materials, parts, equipment, components, and consumable
2supplies used in the modification, replacement, repair, and
3maintenance of aircraft engines or power plants, whether such
4engines or power plants are installed or uninstalled upon any
5such aircraft. "Consumable supplies" include, but are not
6limited to, adhesive, tape, sandpaper, general purpose
7lubricants, cleaning solution, latex gloves, and protective
8films. This exemption applies only to the use of qualifying
9tangible personal property transferred incident to the
10modification, refurbishment, completion, replacement, repair,
11or maintenance of aircraft by persons who (i) hold an Air
12Agency Certificate and are empowered to operate an approved
13repair station by the Federal Aviation Administration, (ii)
14have a Class IV Rating, and (iii) conduct operations in
15accordance with Part 145 of the Federal Aviation Regulations.
16The exemption does not include aircraft operated by a
17commercial air carrier providing scheduled passenger air
18service pursuant to authority issued under Part 121 or Part 129
19of the Federal Aviation Regulations. The changes made to this
20paragraph (27) by Public Act 98-534 are declarative of existing
21law.
22    (28) Tangible personal property purchased by a
23public-facilities corporation, as described in Section
2411-65-10 of the Illinois Municipal Code, for purposes of
25constructing or furnishing a municipal convention hall, but
26only if the legal title to the municipal convention hall is

 

 

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1transferred to the municipality without any further
2consideration by or on behalf of the municipality at the time
3of the completion of the municipal convention hall or upon the
4retirement or redemption of any bonds or other debt instruments
5issued by the public-facilities corporation in connection with
6the development of the municipal convention hall. This
7exemption includes existing public-facilities corporations as
8provided in Section 11-65-25 of the Illinois Municipal Code.
9This paragraph is exempt from the provisions of Section 3-75.
10    (29) Beginning January 1, 2017, menstrual pads, tampons,
11and menstrual cups.
12    (30) Tangible personal property transferred to a purchaser
13who is exempt from the tax imposed by this Act by operation of
14federal law. This paragraph is exempt from the provisions of
15Section 3-75.
16(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
17100-22, eff. 7-6-17.)
 
18    (35 ILCS 110/3-5.5)
19    Sec. 3-5.5. Food and drugs sold by not-for-profit
20organizations; exemption. The Department shall not collect the
211% tax imposed under this Act on food for human consumption
22that is to be consumed off the premises where it is sold (other
23than alcoholic beverages, soft drinks, and food that has been
24prepared for immediate consumption) and prescription and
25nonprescription medicines, drugs, medical appliances, and

 

 

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1insulin, urine testing materials, syringes, and needles used by
2diabetics, for human use from any not-for-profit organization,
3that sells food in a food distribution program at a price below
4the retail cost of the food to purchasers who, as a condition
5of participation in the program, are required to perform
6community service, located in a county or municipality that
7notifies the Department, in writing, that the county or
8municipality does not want the tax to be collected from any of
9such organizations located in the county or municipality.
10(Source: P.A. 88-374.)
 
11    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
12    (Text of Section before amendment by P.A. 100-363)
13    Sec. 9. Each serviceman required or authorized to collect
14the tax herein imposed shall pay to the Department the amount
15of such tax (except as otherwise provided) at the time when he
16is required to file his return for the period during which such
17tax was collected, less a discount of 2.1% prior to January 1,
181990 and 1.75% on and after January 1, 1990, or $5 per calendar
19year, whichever is greater, which is allowed to reimburse the
20serviceman for expenses incurred in collecting the tax, keeping
21records, preparing and filing returns, remitting the tax and
22supplying data to the Department on request. The discount
23allowed under this Section is allowed only for returns that are
24filed in the manner required by this Act. The Department may
25disallow the discount for servicemen whose certificate of

 

 

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1registration is revoked at the time the return is filed, but
2only if the Department's decision to revoke the certificate of
3registration has become final. A serviceman need not remit that
4part of any tax collected by him to the extent that he is
5required to pay and does pay the tax imposed by the Service
6Occupation Tax Act with respect to his sale of service
7involving the incidental transfer by him of the same property.
8    Except as provided hereinafter in this Section, on or
9before the twentieth day of each calendar month, such
10serviceman shall file a return for the preceding calendar month
11in accordance with reasonable Rules and Regulations to be
12promulgated by the Department. Such return shall be filed on a
13form prescribed by the Department and shall contain such
14information as the Department may reasonably require. On and
15after January 1, 2018, with respect to servicemen whose annual
16gross receipts average $20,000 or more, all returns required to
17be filed pursuant to this Act shall be filed electronically.
18Servicemen who demonstrate that they do not have access to the
19Internet or demonstrate hardship in filing electronically may
20petition the Department to waive the electronic filing
21requirement.
22    The Department may require returns to be filed on a
23quarterly basis. If so required, a return for each calendar
24quarter shall be filed on or before the twentieth day of the
25calendar month following the end of such calendar quarter. The
26taxpayer shall also file a return with the Department for each

 

 

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1of the first two months of each calendar quarter, on or before
2the twentieth day of the following calendar month, stating:
3        1. The name of the seller;
4        2. The address of the principal place of business from
5    which he engages in business as a serviceman in this State;
6        3. The total amount of taxable receipts received by him
7    during the preceding calendar month, including receipts
8    from charge and time sales, but less all deductions allowed
9    by law;
10        4. The amount of credit provided in Section 2d of this
11    Act;
12        5. The amount of tax due;
13        5-5. The signature of the taxpayer; and
14        6. Such other reasonable information as the Department
15    may require.
16    If a taxpayer fails to sign a return within 30 days after
17the proper notice and demand for signature by the Department,
18the return shall be considered valid and any amount shown to be
19due on the return shall be deemed assessed.
20    Beginning October 1, 1993, a taxpayer who has an average
21monthly tax liability of $150,000 or more shall make all
22payments required by rules of the Department by electronic
23funds transfer. Beginning October 1, 1994, a taxpayer who has
24an average monthly tax liability of $100,000 or more shall make
25all payments required by rules of the Department by electronic
26funds transfer. Beginning October 1, 1995, a taxpayer who has

 

 

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1an average monthly tax liability of $50,000 or more shall make
2all payments required by rules of the Department by electronic
3funds transfer. Beginning October 1, 2000, a taxpayer who has
4an annual tax liability of $200,000 or more shall make all
5payments required by rules of the Department by electronic
6funds transfer. The term "annual tax liability" shall be the
7sum of the taxpayer's liabilities under this Act, and under all
8other State and local occupation and use tax laws administered
9by the Department, for the immediately preceding calendar year.
10The term "average monthly tax liability" means the sum of the
11taxpayer's liabilities under this Act, and under all other
12State and local occupation and use tax laws administered by the
13Department, for the immediately preceding calendar year
14divided by 12. Beginning on October 1, 2002, a taxpayer who has
15a tax liability in the amount set forth in subsection (b) of
16Section 2505-210 of the Department of Revenue Law shall make
17all payments required by rules of the Department by electronic
18funds transfer.
19    Before August 1 of each year beginning in 1993, the
20Department shall notify all taxpayers required to make payments
21by electronic funds transfer. All taxpayers required to make
22payments by electronic funds transfer shall make those payments
23for a minimum of one year beginning on October 1.
24    Any taxpayer not required to make payments by electronic
25funds transfer may make payments by electronic funds transfer
26with the permission of the Department.

 

 

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1    All taxpayers required to make payment by electronic funds
2transfer and any taxpayers authorized to voluntarily make
3payments by electronic funds transfer shall make those payments
4in the manner authorized by the Department.
5    The Department shall adopt such rules as are necessary to
6effectuate a program of electronic funds transfer and the
7requirements of this Section.
8    If the serviceman is otherwise required to file a monthly
9return and if the serviceman's average monthly tax liability to
10the Department does not exceed $200, the Department may
11authorize his returns to be filed on a quarter annual basis,
12with the return for January, February and March of a given year
13being due by April 20 of such year; with the return for April,
14May and June of a given year being due by July 20 of such year;
15with the return for July, August and September of a given year
16being due by October 20 of such year, and with the return for
17October, November and December of a given year being due by
18January 20 of the following year.
19    If the serviceman is otherwise required to file a monthly
20or quarterly return and if the serviceman's average monthly tax
21liability to the Department does not exceed $50, the Department
22may authorize his returns to be filed on an annual basis, with
23the return for a given year being due by January 20 of the
24following year.
25    Such quarter annual and annual returns, as to form and
26substance, shall be subject to the same requirements as monthly

 

 

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1returns.
2    Notwithstanding any other provision in this Act concerning
3the time within which a serviceman may file his return, in the
4case of any serviceman who ceases to engage in a kind of
5business which makes him responsible for filing returns under
6this Act, such serviceman shall file a final return under this
7Act with the Department not more than 1 month after
8discontinuing such business.
9    Where a serviceman collects the tax with respect to the
10selling price of property which he sells and the purchaser
11thereafter returns such property and the serviceman refunds the
12selling price thereof to the purchaser, such serviceman shall
13also refund, to the purchaser, the tax so collected from the
14purchaser. When filing his return for the period in which he
15refunds such tax to the purchaser, the serviceman may deduct
16the amount of the tax so refunded by him to the purchaser from
17any other Service Use Tax, Service Occupation Tax, retailers'
18occupation tax or use tax which such serviceman may be required
19to pay or remit to the Department, as shown by such return,
20provided that the amount of the tax to be deducted shall
21previously have been remitted to the Department by such
22serviceman. If the serviceman shall not previously have
23remitted the amount of such tax to the Department, he shall be
24entitled to no deduction hereunder upon refunding such tax to
25the purchaser.
26    Any serviceman filing a return hereunder shall also include

 

 

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1the total tax upon the selling price of tangible personal
2property purchased for use by him as an incident to a sale of
3service, and such serviceman shall remit the amount of such tax
4to the Department when filing such return.
5    If experience indicates such action to be practicable, the
6Department may prescribe and furnish a combination or joint
7return which will enable servicemen, who are required to file
8returns hereunder and also under the Service Occupation Tax
9Act, to furnish all the return information required by both
10Acts on the one form.
11    Where the serviceman has more than one business registered
12with the Department under separate registration hereunder,
13such serviceman shall not file each return that is due as a
14single return covering all such registered businesses, but
15shall file separate returns for each such registered business.
16    Beginning January 1, 1990, each month the Department shall
17pay into the State and Local Tax Reform Fund, a special fund in
18the State Treasury, the net revenue realized for the preceding
19month from the 1% tax imposed under this Act on sales of food
20for human consumption which is to be consumed off the premises
21where it is sold (other than alcoholic beverages, soft drinks
22and food which has been prepared for immediate consumption) and
23prescription and nonprescription medicines, drugs, medical
24appliances, products classified as Class III medical devices,
25by the United States Food and Drug Administration that are used
26for cancer treatment pursuant to a prescription, as well as any

 

 

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1accessories and components related to those devices, and
2insulin, urine testing materials, syringes and needles used by
3diabetics.
4    Beginning January 1, 1990, each month the Department shall
5pay into the State and Local Sales Tax Reform Fund 20% of the
6net revenue realized for the preceding month from the 6.25%
7general rate on transfers of tangible personal property, other
8than tangible personal property which is purchased outside
9Illinois at retail from a retailer and which is titled or
10registered by an agency of this State's government.
11    Beginning August 1, 2000, each month the Department shall
12pay into the State and Local Sales Tax Reform Fund 100% of the
13net revenue realized for the preceding month from the 1.25%
14rate on the selling price of motor fuel and gasohol.
15    Beginning October 1, 2009, each month the Department shall
16pay into the Capital Projects Fund an amount that is equal to
17an amount estimated by the Department to represent 80% of the
18net revenue realized for the preceding month from the sale of
19candy, grooming and hygiene products, and soft drinks that had
20been taxed at a rate of 1% prior to September 1, 2009 but that
21are now taxed at 6.25%.
22    Beginning July 1, 2013, each month the Department shall pay
23into the Underground Storage Tank Fund from the proceeds
24collected under this Act, the Use Tax Act, the Service
25Occupation Tax Act, and the Retailers' Occupation Tax Act an
26amount equal to the average monthly deficit in the Underground

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB3445- 131 -LRB100 20331 HLH 35618 b

12003 99,000,000
22004103,000,000
32005108,000,000
42006113,000,000
52007119,000,000
62008126,000,000
72009132,000,000
82010139,000,000
92011146,000,000
102012153,000,000
112013161,000,000
122014170,000,000
132015179,000,000
142016189,000,000
152017199,000,000
162018210,000,000
172019221,000,000
182020233,000,000
192021246,000,000
202022260,000,000
212023275,000,000
222024 275,000,000
232025 275,000,000
242026 279,000,000
252027 292,000,000
262028 307,000,000

 

 

SB3445- 132 -LRB100 20331 HLH 35618 b

12029 322,000,000
22030 338,000,000
32031 350,000,000
42032 350,000,000
5and
6each fiscal year
7thereafter that bonds
8are outstanding under
9Section 13.2 of the
10Metropolitan Pier and
11Exposition Authority Act,
12but not after fiscal year 2060.
13    Beginning July 20, 1993 and in each month of each fiscal
14year thereafter, one-eighth of the amount requested in the
15certificate of the Chairman of the Metropolitan Pier and
16Exposition Authority for that fiscal year, less the amount
17deposited into the McCormick Place Expansion Project Fund by
18the State Treasurer in the respective month under subsection
19(g) of Section 13 of the Metropolitan Pier and Exposition
20Authority Act, plus cumulative deficiencies in the deposits
21required under this Section for previous months and years,
22shall be deposited into the McCormick Place Expansion Project
23Fund, until the full amount requested for the fiscal year, but
24not in excess of the amount specified above as "Total Deposit",
25has been deposited.
26    Subject to payment of amounts into the Build Illinois Fund

 

 

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1and the McCormick Place Expansion Project Fund pursuant to the
2preceding paragraphs or in any amendments thereto hereafter
3enacted, beginning July 1, 1993 and ending on September 30,
42013, the Department shall each month pay into the Illinois Tax
5Increment Fund 0.27% of 80% of the net revenue realized for the
6preceding month from the 6.25% general rate on the selling
7price of tangible personal property.
8    Subject to payment of amounts into the Build Illinois Fund
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, beginning with the receipt of the first report of
12taxes paid by an eligible business and continuing for a 25-year
13period, the Department shall each month pay into the Energy
14Infrastructure Fund 80% of the net revenue realized from the
156.25% general rate on the selling price of Illinois-mined coal
16that was sold to an eligible business. For purposes of this
17paragraph, the term "eligible business" means a new electric
18generating facility certified pursuant to Section 605-332 of
19the Department of Commerce and Economic Opportunity Law of the
20Civil Administrative Code of Illinois.
21    Subject to payment of amounts into the Build Illinois Fund,
22the McCormick Place Expansion Project Fund, the Illinois Tax
23Increment Fund, and the Energy Infrastructure Fund pursuant to
24the preceding paragraphs or in any amendments to this Section
25hereafter enacted, beginning on the first day of the first
26calendar month to occur on or after August 26, 2014 (the

 

 

SB3445- 134 -LRB100 20331 HLH 35618 b

1effective date of Public Act 98-1098) this amendatory Act of
2the 98th General Assembly, each month, from the collections
3made under Section 9 of the Use Tax Act, Section 9 of the
4Service Use Tax Act, Section 9 of the Service Occupation Tax
5Act, and Section 3 of the Retailers' Occupation Tax Act, the
6Department shall pay into the Tax Compliance and Administration
7Fund, to be used, subject to appropriation, to fund additional
8auditors and compliance personnel at the Department of Revenue,
9an amount equal to 1/12 of 5% of 80% of the cash receipts
10collected during the preceding fiscal year by the Audit Bureau
11of the Department under the Use Tax Act, the Service Use Tax
12Act, the Service Occupation Tax Act, the Retailers' Occupation
13Tax Act, and associated local occupation and use taxes
14administered by the Department.
15    Of the remainder of the moneys received by the Department
16pursuant to this Act, 75% thereof shall be paid into the
17General Revenue Fund of the State Treasury and 25% shall be
18reserved in a special account and used only for the transfer to
19the Common School Fund as part of the monthly transfer from the
20General Revenue Fund in accordance with Section 8a of the State
21Finance Act.
22    As soon as possible after the first day of each month, upon
23certification of the Department of Revenue, the Comptroller
24shall order transferred and the Treasurer shall transfer from
25the General Revenue Fund to the Motor Fuel Tax Fund an amount
26equal to 1.7% of 80% of the net revenue realized under this Act

 

 

SB3445- 135 -LRB100 20331 HLH 35618 b

1for the second preceding month. Beginning April 1, 2000, this
2transfer is no longer required and shall not be made.
3    Net revenue realized for a month shall be the revenue
4collected by the State pursuant to this Act, less the amount
5paid out during that month as refunds to taxpayers for
6overpayment of liability.
7(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
8100-303, eff. 8-24-17; revised 1-22-18.)
 
9    (Text of Section after amendment by P.A. 100-363)
10    Sec. 9. Each serviceman required or authorized to collect
11the tax herein imposed shall pay to the Department the amount
12of such tax (except as otherwise provided) at the time when he
13is required to file his return for the period during which such
14tax was collected, less a discount of 2.1% prior to January 1,
151990 and 1.75% on and after January 1, 1990, or $5 per calendar
16year, whichever is greater, which is allowed to reimburse the
17serviceman for expenses incurred in collecting the tax, keeping
18records, preparing and filing returns, remitting the tax and
19supplying data to the Department on request. The discount
20allowed under this Section is allowed only for returns that are
21filed in the manner required by this Act. The Department may
22disallow the discount for servicemen whose certificate of
23registration is revoked at the time the return is filed, but
24only if the Department's decision to revoke the certificate of
25registration has become final. A serviceman need not remit that

 

 

SB3445- 136 -LRB100 20331 HLH 35618 b

1part of any tax collected by him to the extent that he is
2required to pay and does pay the tax imposed by the Service
3Occupation Tax Act with respect to his sale of service
4involving the incidental transfer by him of the same property.
5    Except as provided hereinafter in this Section, on or
6before the twentieth day of each calendar month, such
7serviceman shall file a return for the preceding calendar month
8in accordance with reasonable Rules and Regulations to be
9promulgated by the Department. Such return shall be filed on a
10form prescribed by the Department and shall contain such
11information as the Department may reasonably require. On and
12after January 1, 2018, with respect to servicemen whose annual
13gross receipts average $20,000 or more, all returns required to
14be filed pursuant to this Act shall be filed electronically.
15Servicemen who demonstrate that they do not have access to the
16Internet or demonstrate hardship in filing electronically may
17petition the Department to waive the electronic filing
18requirement.
19    The Department may require returns to be filed on a
20quarterly basis. If so required, a return for each calendar
21quarter shall be filed on or before the twentieth day of the
22calendar month following the end of such calendar quarter. The
23taxpayer shall also file a return with the Department for each
24of the first two months of each calendar quarter, on or before
25the twentieth day of the following calendar month, stating:
26        1. The name of the seller;

 

 

SB3445- 137 -LRB100 20331 HLH 35618 b

1        2. The address of the principal place of business from
2    which he engages in business as a serviceman in this State;
3        3. The total amount of taxable receipts received by him
4    during the preceding calendar month, including receipts
5    from charge and time sales, but less all deductions allowed
6    by law;
7        4. The amount of credit provided in Section 2d of this
8    Act;
9        5. The amount of tax due;
10        5-5. The signature of the taxpayer; and
11        6. Such other reasonable information as the Department
12    may require.
13    If a taxpayer fails to sign a return within 30 days after
14the proper notice and demand for signature by the Department,
15the return shall be considered valid and any amount shown to be
16due on the return shall be deemed assessed.
17    Beginning October 1, 1993, a taxpayer who has an average
18monthly tax liability of $150,000 or more shall make all
19payments required by rules of the Department by electronic
20funds transfer. Beginning October 1, 1994, a taxpayer who has
21an average monthly tax liability of $100,000 or more shall make
22all payments required by rules of the Department by electronic
23funds transfer. Beginning October 1, 1995, a taxpayer who has
24an average monthly tax liability of $50,000 or more shall make
25all payments required by rules of the Department by electronic
26funds transfer. Beginning October 1, 2000, a taxpayer who has

 

 

SB3445- 138 -LRB100 20331 HLH 35618 b

1an annual tax liability of $200,000 or more shall make all
2payments required by rules of the Department by electronic
3funds transfer. The term "annual tax liability" shall be the
4sum of the taxpayer's liabilities under this Act, and under all
5other State and local occupation and use tax laws administered
6by the Department, for the immediately preceding calendar year.
7The term "average monthly tax liability" means the sum of the
8taxpayer's liabilities under this Act, and under all other
9State and local occupation and use tax laws administered by the
10Department, for the immediately preceding calendar year
11divided by 12. Beginning on October 1, 2002, a taxpayer who has
12a tax liability in the amount set forth in subsection (b) of
13Section 2505-210 of the Department of Revenue Law shall make
14all payments required by rules of the Department by electronic
15funds transfer.
16    Before August 1 of each year beginning in 1993, the
17Department shall notify all taxpayers required to make payments
18by electronic funds transfer. All taxpayers required to make
19payments by electronic funds transfer shall make those payments
20for a minimum of one year beginning on October 1.
21    Any taxpayer not required to make payments by electronic
22funds transfer may make payments by electronic funds transfer
23with the permission of the Department.
24    All taxpayers required to make payment by electronic funds
25transfer and any taxpayers authorized to voluntarily make
26payments by electronic funds transfer shall make those payments

 

 

SB3445- 139 -LRB100 20331 HLH 35618 b

1in the manner authorized by the Department.
2    The Department shall adopt such rules as are necessary to
3effectuate a program of electronic funds transfer and the
4requirements of this Section.
5    If the serviceman is otherwise required to file a monthly
6return and if the serviceman's average monthly tax liability to
7the Department does not exceed $200, the Department may
8authorize his returns to be filed on a quarter annual basis,
9with the return for January, February and March of a given year
10being due by April 20 of such year; with the return for April,
11May and June of a given year being due by July 20 of such year;
12with the return for July, August and September of a given year
13being due by October 20 of such year, and with the return for
14October, November and December of a given year being due by
15January 20 of the following year.
16    If the serviceman is otherwise required to file a monthly
17or quarterly return and if the serviceman's average monthly tax
18liability to the Department does not exceed $50, the Department
19may authorize his returns to be filed on an annual basis, with
20the return for a given year being due by January 20 of the
21following year.
22    Such quarter annual and annual returns, as to form and
23substance, shall be subject to the same requirements as monthly
24returns.
25    Notwithstanding any other provision in this Act concerning
26the time within which a serviceman may file his return, in the

 

 

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1case of any serviceman who ceases to engage in a kind of
2business which makes him responsible for filing returns under
3this Act, such serviceman shall file a final return under this
4Act with the Department not more than 1 month after
5discontinuing such business.
6    Where a serviceman collects the tax with respect to the
7selling price of property which he sells and the purchaser
8thereafter returns such property and the serviceman refunds the
9selling price thereof to the purchaser, such serviceman shall
10also refund, to the purchaser, the tax so collected from the
11purchaser. When filing his return for the period in which he
12refunds such tax to the purchaser, the serviceman may deduct
13the amount of the tax so refunded by him to the purchaser from
14any other Service Use Tax, Service Occupation Tax, retailers'
15occupation tax or use tax which such serviceman may be required
16to pay or remit to the Department, as shown by such return,
17provided that the amount of the tax to be deducted shall
18previously have been remitted to the Department by such
19serviceman. If the serviceman shall not previously have
20remitted the amount of such tax to the Department, he shall be
21entitled to no deduction hereunder upon refunding such tax to
22the purchaser.
23    Any serviceman filing a return hereunder shall also include
24the total tax upon the selling price of tangible personal
25property purchased for use by him as an incident to a sale of
26service, and such serviceman shall remit the amount of such tax

 

 

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1to the Department when filing such return.
2    If experience indicates such action to be practicable, the
3Department may prescribe and furnish a combination or joint
4return which will enable servicemen, who are required to file
5returns hereunder and also under the Service Occupation Tax
6Act, to furnish all the return information required by both
7Acts on the one form.
8    Where the serviceman has more than one business registered
9with the Department under separate registration hereunder,
10such serviceman shall not file each return that is due as a
11single return covering all such registered businesses, but
12shall file separate returns for each such registered business.
13    Beginning January 1, 1990, each month the Department shall
14pay into the State and Local Tax Reform Fund, a special fund in
15the State Treasury, the net revenue realized for the preceding
16month from the 1% tax imposed under this Act on sales of food
17for human consumption which is to be consumed off the premises
18where it is sold (other than alcoholic beverages, soft drinks
19and food which has been prepared for immediate consumption) and
20prescription and nonprescription medicines, drugs, medical
21appliances, products classified as Class III medical devices,
22by the United States Food and Drug Administration that are used
23for cancer treatment pursuant to a prescription, as well as any
24accessories and components related to those devices, and
25insulin, urine testing materials, syringes and needles used by
26diabetics.

 

 

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1    Beginning January 1, 1990, each month the Department shall
2pay into the State and Local Sales Tax Reform Fund 20% of the
3net revenue realized for the preceding month from the 6.25%
4general rate on transfers of tangible personal property, other
5than tangible personal property which is purchased outside
6Illinois at retail from a retailer and which is titled or
7registered by an agency of this State's government.
8    Beginning August 1, 2000, each month the Department shall
9pay into the State and Local Sales Tax Reform Fund 100% of the
10net revenue realized for the preceding month from the 1.25%
11rate on the selling price of motor fuel and gasohol.
12    Beginning October 1, 2009, each month the Department shall
13pay into the Capital Projects Fund an amount that is equal to
14an amount estimated by the Department to represent 80% of the
15net revenue realized for the preceding month from the sale of
16candy, grooming and hygiene products, and soft drinks that had
17been taxed at a rate of 1% prior to September 1, 2009 but that
18are now taxed at 6.25%.
19    Beginning July 1, 2013, each month the Department shall pay
20into the Underground Storage Tank Fund from the proceeds
21collected under this Act, the Use Tax Act, the Service
22Occupation Tax Act, and the Retailers' Occupation Tax Act an
23amount equal to the average monthly deficit in the Underground
24Storage Tank Fund during the prior year, as certified annually
25by the Illinois Environmental Protection Agency, but the total
26payment into the Underground Storage Tank Fund under this Act,

 

 

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

 

 

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

 

 

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

 

 

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1as provided in the preceding paragraph or in any amendment
2thereto hereafter enacted, the following specified monthly
3installment of the amount requested in the certificate of the
4Chairman of the Metropolitan Pier and Exposition Authority
5provided under Section 8.25f of the State Finance Act, but not
6in excess of the sums designated as "Total Deposit", shall be
7deposited in the aggregate from collections under Section 9 of
8the Use Tax Act, Section 9 of the Service Use Tax Act, Section
99 of the Service Occupation Tax Act, and Section 3 of the
10Retailers' Occupation Tax Act into the McCormick Place
11Expansion Project Fund in the specified fiscal years.
12Fiscal YearTotal Deposit
131993         $0
141994 53,000,000
151995 58,000,000
161996 61,000,000
171997 64,000,000
181998 68,000,000
191999 71,000,000
202000 75,000,000
212001 80,000,000
222002 93,000,000
232003 99,000,000
242004103,000,000
252005108,000,000

 

 

SB3445- 147 -LRB100 20331 HLH 35618 b

12006113,000,000
22007119,000,000
32008126,000,000
42009132,000,000
52010139,000,000
62011146,000,000
72012153,000,000
82013161,000,000
92014170,000,000
102015179,000,000
112016189,000,000
122017199,000,000
132018210,000,000
142019221,000,000
152020233,000,000
162021246,000,000
172022260,000,000
182023275,000,000
192024 275,000,000
202025 275,000,000
212026 279,000,000
222027 292,000,000
232028 307,000,000
242029 322,000,000
252030 338,000,000
262031 350,000,000

 

 

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12032 350,000,000
2and
3each fiscal year
4thereafter that bonds
5are outstanding under
6Section 13.2 of the
7Metropolitan Pier and
8Exposition Authority Act,
9but not after fiscal year 2060.
10    Beginning July 20, 1993 and in each month of each fiscal
11year thereafter, one-eighth of the amount requested in the
12certificate of the Chairman of the Metropolitan Pier and
13Exposition Authority for that fiscal year, less the amount
14deposited into the McCormick Place Expansion Project Fund by
15the State Treasurer in the respective month under subsection
16(g) of Section 13 of the Metropolitan Pier and Exposition
17Authority Act, plus cumulative deficiencies in the deposits
18required under this Section for previous months and years,
19shall be deposited into the McCormick Place Expansion Project
20Fund, until the full amount requested for the fiscal year, but
21not in excess of the amount specified above as "Total Deposit",
22has been deposited.
23    Subject to payment of amounts into the Build Illinois Fund
24and the McCormick Place Expansion Project Fund pursuant to the
25preceding paragraphs or in any amendments thereto hereafter
26enacted, beginning July 1, 1993 and ending on September 30,

 

 

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12013, the Department shall each month pay into the Illinois Tax
2Increment Fund 0.27% of 80% of the net revenue realized for the
3preceding month from the 6.25% general rate on the selling
4price of tangible personal property.
5    Subject to payment of amounts into the Build Illinois Fund
6and the McCormick Place Expansion Project Fund pursuant to the
7preceding paragraphs or in any amendments thereto hereafter
8enacted, beginning with the receipt of the first report of
9taxes paid by an eligible business and continuing for a 25-year
10period, the Department shall each month pay into the Energy
11Infrastructure Fund 80% of the net revenue realized from the
126.25% general rate on the selling price of Illinois-mined coal
13that was sold to an eligible business. For purposes of this
14paragraph, the term "eligible business" means a new electric
15generating facility certified pursuant to Section 605-332 of
16the Department of Commerce and Economic Opportunity Law of the
17Civil Administrative Code of Illinois.
18    Subject to payment of amounts into the Build Illinois Fund,
19the McCormick Place Expansion Project Fund, the Illinois Tax
20Increment Fund, and the Energy Infrastructure Fund pursuant to
21the preceding paragraphs or in any amendments to this Section
22hereafter enacted, beginning on the first day of the first
23calendar month to occur on or after August 26, 2014 (the
24effective date of Public Act 98-1098) this amendatory Act of
25the 98th General Assembly, each month, from the collections
26made under Section 9 of the Use Tax Act, Section 9 of the

 

 

SB3445- 150 -LRB100 20331 HLH 35618 b

1Service Use Tax Act, Section 9 of the Service Occupation Tax
2Act, and Section 3 of the Retailers' Occupation Tax Act, the
3Department shall pay into the Tax Compliance and Administration
4Fund, to be used, subject to appropriation, to fund additional
5auditors and compliance personnel at the Department of Revenue,
6an amount equal to 1/12 of 5% of 80% of the cash receipts
7collected during the preceding fiscal year by the Audit Bureau
8of the Department under the Use Tax Act, the Service Use Tax
9Act, the Service Occupation Tax Act, the Retailers' Occupation
10Tax Act, and associated local occupation and use taxes
11administered by the Department.
12    Subject to payments of amounts into the Build Illinois
13Fund, the McCormick Place Expansion Project Fund, the Illinois
14Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
15Compliance and Administration Fund as provided in this Section,
16beginning on July 1, 2018 the Department shall pay each month
17into the Downstate Public Transportation Fund the moneys
18required to be so paid under Section 2-3 of the Downstate
19Public Transportation Act.
20    Of the remainder of the moneys received by the Department
21pursuant to this Act, 75% thereof shall be paid into the
22General Revenue Fund of the State Treasury and 25% shall be
23reserved in a special account and used only for the transfer to
24the Common School Fund as part of the monthly transfer from the
25General Revenue Fund in accordance with Section 8a of the State
26Finance Act.

 

 

SB3445- 151 -LRB100 20331 HLH 35618 b

1    As soon as possible after the first day of each month, upon
2certification of the Department of Revenue, the Comptroller
3shall order transferred and the Treasurer shall transfer from
4the General Revenue Fund to the Motor Fuel Tax Fund an amount
5equal to 1.7% of 80% of the net revenue realized under this Act
6for the second preceding month. Beginning April 1, 2000, this
7transfer is no longer required and shall not be made.
8    Net revenue realized for a month shall be the revenue
9collected by the State pursuant to this Act, less the amount
10paid out during that month as refunds to taxpayers for
11overpayment of liability.
12(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
13100-303, eff. 8-24-17; 100-363, eff. 7-1-18; revised 1-22-18.)
 
14    Section 40. The Service Occupation Tax Act is amended by
15changing Sections 3-5, 3-5.5 and 9 as follows:
 
16    (35 ILCS 115/3-5)
17    Sec. 3-5. Exemptions. The following tangible personal
18property is exempt from the tax imposed by this Act:
19    (1) Personal property sold by a corporation, society,
20association, foundation, institution, or organization, other
21than a limited liability company, that is organized and
22operated as a not-for-profit service enterprise for the benefit
23of persons 65 years of age or older if the personal property
24was not purchased by the enterprise for the purpose of resale

 

 

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

 

 

SB3445- 153 -LRB100 20331 HLH 35618 b

1used, and including that manufactured on special order or
2purchased for lease, certified by the purchaser to be used
3primarily for graphic arts production. Equipment includes
4chemicals or chemicals acting as catalysts but only if the
5chemicals or chemicals acting as catalysts effect a direct and
6immediate change upon a graphic arts product. Beginning on July
71, 2017, graphic arts machinery and equipment is included in
8the manufacturing and assembling machinery and equipment
9exemption under Section 2 of this Act.
10    (6) Personal property sold by a teacher-sponsored student
11organization affiliated with an elementary or secondary school
12located in Illinois.
13    (7) Farm machinery and equipment, both new and used,
14including that manufactured on special order, certified by the
15purchaser to be used primarily for production agriculture or
16State or federal agricultural programs, including individual
17replacement parts for the machinery and equipment, including
18machinery and equipment purchased for lease, and including
19implements of husbandry defined in Section 1-130 of the
20Illinois Vehicle Code, farm machinery and agricultural
21chemical and fertilizer spreaders, and nurse wagons required to
22be registered under Section 3-809 of the Illinois Vehicle Code,
23but excluding other motor vehicles required to be registered
24under the Illinois Vehicle Code. Horticultural polyhouses or
25hoop houses used for propagating, growing, or overwintering
26plants shall be considered farm machinery and equipment under

 

 

SB3445- 154 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 155 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 156 -LRB100 20331 HLH 35618 b

1drilling, and production equipment, and (vi) machinery and
2equipment purchased for lease; but excluding motor vehicles
3required to be registered under the Illinois Vehicle Code.
4    (11) Photoprocessing machinery and equipment, including
5repair and replacement parts, both new and used, including that
6manufactured on special order, certified by the purchaser to be
7used primarily for photoprocessing, and including
8photoprocessing machinery and equipment purchased for lease.
9    (12) Coal and aggregate exploration, mining, off-highway
10hauling, processing, maintenance, and reclamation equipment,
11including replacement parts and equipment, and including
12equipment purchased for lease, but excluding motor vehicles
13required to be registered under the Illinois Vehicle Code. The
14changes made to this Section by Public Act 97-767 apply on and
15after July 1, 2003, but no claim for credit or refund is
16allowed on or after August 16, 2013 (the effective date of
17Public Act 98-456) for such taxes paid during the period
18beginning July 1, 2003 and ending on August 16, 2013 (the
19effective date of Public Act 98-456).
20    (13) Beginning January 1, 1992 and through June 30, 2016,
21food for human consumption that is to be consumed off the
22premises where it is sold (other than alcoholic beverages, soft
23drinks and food that has been prepared for immediate
24consumption) and prescription and non-prescription medicines,
25drugs, medical appliances, and insulin, urine testing
26materials, syringes, and needles used by diabetics, for human

 

 

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1use, when purchased for use by a person receiving medical
2assistance under Article V of the Illinois Public Aid Code who
3resides in a licensed long-term care facility, as defined in
4the Nursing Home Care Act, or in a licensed facility as defined
5in the ID/DD Community Care Act, the MC/DD Act, or the
6Specialized Mental Health Rehabilitation Act of 2013.
7    (14) Semen used for artificial insemination of livestock
8for direct agricultural production.
9    (15) Horses, or interests in horses, registered with and
10meeting the requirements of any of the Arabian Horse Club
11Registry of America, Appaloosa Horse Club, American Quarter
12Horse Association, United States Trotting Association, or
13Jockey Club, as appropriate, used for purposes of breeding or
14racing for prizes. This item (15) is exempt from the provisions
15of Section 3-55, and the exemption provided for under this item
16(15) applies for all periods beginning May 30, 1995, but no
17claim for credit or refund is allowed on or after January 1,
182008 (the effective date of Public Act 95-88) for such taxes
19paid during the period beginning May 30, 2000 and ending on
20January 1, 2008 (the effective date of Public Act 95-88).
21    (16) Computers and communications equipment utilized for
22any hospital purpose and equipment used in the diagnosis,
23analysis, or treatment of hospital patients sold to a lessor
24who leases the equipment, under a lease of one year or longer
25executed or in effect at the time of the purchase, to a
26hospital that has been issued an active tax exemption

 

 

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

 

 

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1sewage treatment facilities, resulting from a State or
2federally declared disaster in Illinois or bordering Illinois
3when such repairs are initiated on facilities located in the
4declared disaster area within 6 months after the disaster.
5    (20) Beginning July 1, 1999, game or game birds sold at a
6"game breeding and hunting preserve area" as that term is used
7in the Wildlife Code. This paragraph is exempt from the
8provisions of Section 3-55.
9    (21) A motor vehicle, as that term is defined in Section
101-146 of the Illinois Vehicle Code, that is donated to a
11corporation, limited liability company, society, association,
12foundation, or institution that is determined by the Department
13to be organized and operated exclusively for educational
14purposes. For purposes of this exemption, "a corporation,
15limited liability company, society, association, foundation,
16or institution organized and operated exclusively for
17educational purposes" means all tax-supported public schools,
18private schools that offer systematic instruction in useful
19branches of learning by methods common to public schools and
20that compare favorably in their scope and intensity with the
21course of study presented in tax-supported schools, and
22vocational or technical schools or institutes organized and
23operated exclusively to provide a course of study of not less
24than 6 weeks duration and designed to prepare individuals to
25follow a trade or to pursue a manual, technical, mechanical,
26industrial, business, or commercial occupation.

 

 

SB3445- 160 -LRB100 20331 HLH 35618 b

1    (22) Beginning January 1, 2000, personal property,
2including food, purchased through fundraising events for the
3benefit of a public or private elementary or secondary school,
4a group of those schools, or one or more school districts if
5the events are sponsored by an entity recognized by the school
6district that consists primarily of volunteers and includes
7parents and teachers of the school children. This paragraph
8does not apply to fundraising events (i) for the benefit of
9private home instruction or (ii) for which the fundraising
10entity purchases the personal property sold at the events from
11another individual or entity that sold the property for the
12purpose of resale by the fundraising entity and that profits
13from the sale to the fundraising entity. This paragraph is
14exempt from the provisions of Section 3-55.
15    (23) Beginning January 1, 2000 and through December 31,
162001, new or used automatic vending machines that prepare and
17serve hot food and beverages, including coffee, soup, and other
18items, and replacement parts for these machines. Beginning
19January 1, 2002 and through June 30, 2003, machines and parts
20for machines used in commercial, coin-operated amusement and
21vending business if a use or occupation tax is paid on the
22gross receipts derived from the use of the commercial,
23coin-operated amusement and vending machines. This paragraph
24is exempt from the provisions of Section 3-55.
25    (24) Beginning on the effective date of this amendatory Act
26of the 92nd General Assembly, computers and communications

 

 

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1equipment utilized for any hospital purpose and equipment used
2in the diagnosis, analysis, or treatment of hospital patients
3sold to a lessor who leases the equipment, under a lease of one
4year or longer executed or in effect at the time of the
5purchase, to a hospital that has been issued an active tax
6exemption identification number by the Department under
7Section 1g of the Retailers' Occupation Tax Act. This paragraph
8is exempt from the provisions of Section 3-55.
9    (25) Beginning on the effective date of this amendatory Act
10of the 92nd General Assembly, personal property sold to a
11lessor who leases the property, under a lease of one year or
12longer executed or in effect at the time of the purchase, to a
13governmental body that has been issued an active tax exemption
14identification number by the Department under Section 1g of the
15Retailers' Occupation Tax Act. This paragraph is exempt from
16the provisions of Section 3-55.
17    (26) Beginning on January 1, 2002 and through June 30,
182016, tangible personal property purchased from an Illinois
19retailer by a taxpayer engaged in centralized purchasing
20activities in Illinois who will, upon receipt of the property
21in Illinois, temporarily store the property in Illinois (i) for
22the purpose of subsequently transporting it outside this State
23for use or consumption thereafter solely outside this State or
24(ii) for the purpose of being processed, fabricated, or
25manufactured into, attached to, or incorporated into other
26tangible personal property to be transported outside this State

 

 

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1and thereafter used or consumed solely outside this State. The
2Director of Revenue shall, pursuant to rules adopted in
3accordance with the Illinois Administrative Procedure Act,
4issue a permit to any taxpayer in good standing with the
5Department who is eligible for the exemption under this
6paragraph (26). The permit issued under this paragraph (26)
7shall authorize the holder, to the extent and in the manner
8specified in the rules adopted under this Act, to purchase
9tangible personal property from a retailer exempt from the
10taxes imposed by this Act. Taxpayers shall maintain all
11necessary books and records to substantiate the use and
12consumption of all such tangible personal property outside of
13the State of Illinois.
14    (27) Beginning January 1, 2008, tangible personal property
15used in the construction or maintenance of a community water
16supply, as defined under Section 3.145 of the Environmental
17Protection Act, that is operated by a not-for-profit
18corporation that holds a valid water supply permit issued under
19Title IV of the Environmental Protection Act. This paragraph is
20exempt from the provisions of Section 3-55.
21    (28) Tangible personal property sold to a
22public-facilities corporation, as described in Section
2311-65-10 of the Illinois Municipal Code, for purposes of
24constructing or furnishing a municipal convention hall, but
25only if the legal title to the municipal convention hall is
26transferred to the municipality without any further

 

 

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1consideration by or on behalf of the municipality at the time
2of the completion of the municipal convention hall or upon the
3retirement or redemption of any bonds or other debt instruments
4issued by the public-facilities corporation in connection with
5the development of the municipal convention hall. This
6exemption includes existing public-facilities corporations as
7provided in Section 11-65-25 of the Illinois Municipal Code.
8This paragraph is exempt from the provisions of Section 3-55.
9    (29) Beginning January 1, 2010, materials, parts,
10equipment, components, and furnishings incorporated into or
11upon an aircraft as part of the modification, refurbishment,
12completion, replacement, repair, or maintenance of the
13aircraft. This exemption includes consumable supplies used in
14the modification, refurbishment, completion, replacement,
15repair, and maintenance of aircraft, but excludes any
16materials, parts, equipment, components, and consumable
17supplies used in the modification, replacement, repair, and
18maintenance of aircraft engines or power plants, whether such
19engines or power plants are installed or uninstalled upon any
20such aircraft. "Consumable supplies" include, but are not
21limited to, adhesive, tape, sandpaper, general purpose
22lubricants, cleaning solution, latex gloves, and protective
23films. This exemption applies only to the transfer of
24qualifying tangible personal property incident to the
25modification, refurbishment, completion, replacement, repair,
26or maintenance of an aircraft by persons who (i) hold an Air

 

 

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1Agency Certificate and are empowered to operate an approved
2repair station by the Federal Aviation Administration, (ii)
3have a Class IV Rating, and (iii) conduct operations in
4accordance with Part 145 of the Federal Aviation Regulations.
5The exemption does not include aircraft operated by a
6commercial air carrier providing scheduled passenger air
7service pursuant to authority issued under Part 121 or Part 129
8of the Federal Aviation Regulations. The changes made to this
9paragraph (29) by Public Act 98-534 are declarative of existing
10law.
11    (30) Beginning January 1, 2017, menstrual pads, tampons,
12and menstrual cups.
13    (31) Tangible personal property transferred to a purchaser
14who is exempt from the tax imposed by this Act by operation of
15federal law. This paragraph is exempt from the provisions of
16Section 3-55.
17(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
18100-22, eff. 7-6-17.)
 
19    (35 ILCS 115/3-5.5)
20    Sec. 3-5.5. Food and drugs sold by not-for-profit
21organizations; exemption. The Department shall not collect the
221% tax imposed under this Act on food for human consumption
23that is to be consumed off the premises where it is sold (other
24than alcoholic beverages, soft drinks, and food that has been
25prepared for immediate consumption) and prescription and

 

 

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1nonprescription medicines, drugs, medical appliances, and
2insulin, urine testing materials, syringes, and needles used by
3diabetics, for human use from any not-for-profit organization,
4that sells food in a food distribution program at a price below
5the retail cost of the food to purchasers who, as a condition
6of participation in the program, are required to perform
7community service, located in a county or municipality that
8notifies the Department, in writing, that the county or
9municipality does not want the tax to be collected from any of
10such organizations located in the county or municipality.
11(Source: P.A. 88-374.)
 
12    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
13    (Text of Section before amendment by P.A. 100-363)
14    Sec. 9. Each serviceman required or authorized to collect
15the tax herein imposed shall pay to the Department the amount
16of such tax at the time when he is required to file his return
17for the period during which such tax was collectible, less a
18discount of 2.1% prior to January 1, 1990, and 1.75% on and
19after January 1, 1990, or $5 per calendar year, whichever is
20greater, which is allowed to reimburse the serviceman for
21expenses incurred in collecting the tax, keeping records,
22preparing and filing returns, remitting the tax and supplying
23data to the Department on request. The discount allowed under
24this Section is allowed only for returns that are filed in the
25manner required by this Act. The Department may disallow the

 

 

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1discount for servicemen whose certificate of registration is
2revoked at the time the return is filed, but only if the
3Department's decision to revoke the certificate of
4registration has become final.
5    Where such tangible personal property is sold under a
6conditional sales contract, or under any other form of sale
7wherein the payment of the principal sum, or a part thereof, is
8extended beyond the close of the period for which the return is
9filed, the serviceman, in collecting the tax may collect, for
10each tax return period, only the tax applicable to the part of
11the selling price actually received during such tax return
12period.
13    Except as provided hereinafter in this Section, on or
14before the twentieth day of each calendar month, such
15serviceman shall file a return for the preceding calendar month
16in accordance with reasonable rules and regulations to be
17promulgated by the Department of Revenue. Such return shall be
18filed on a form prescribed by the Department and shall contain
19such information as the Department may reasonably require. On
20and after January 1, 2018, with respect to servicemen whose
21annual gross receipts average $20,000 or more, all returns
22required to be filed pursuant to this Act shall be filed
23electronically. Servicemen who demonstrate that they do not
24have access to the Internet or demonstrate hardship in filing
25electronically may petition the Department to waive the
26electronic filing requirement.

 

 

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1    The Department may require returns to be filed on a
2quarterly basis. If so required, a return for each calendar
3quarter shall be filed on or before the twentieth day of the
4calendar month following the end of such calendar quarter. The
5taxpayer shall also file a return with the Department for each
6of the first two months of each calendar quarter, on or before
7the twentieth day of the following calendar month, stating:
8        1. The name of the seller;
9        2. The address of the principal place of business from
10    which he engages in business as a serviceman in this State;
11        3. The total amount of taxable receipts received by him
12    during the preceding calendar month, including receipts
13    from charge and time sales, but less all deductions allowed
14    by law;
15        4. The amount of credit provided in Section 2d of this
16    Act;
17        5. The amount of tax due;
18        5-5. The signature of the taxpayer; and
19        6. Such other reasonable information as the Department
20    may require.
21    If a taxpayer fails to sign a return within 30 days after
22the proper notice and demand for signature by the Department,
23the return shall be considered valid and any amount shown to be
24due on the return shall be deemed assessed.
25    Prior to October 1, 2003, and on and after September 1,
262004 a serviceman may accept a Manufacturer's Purchase Credit

 

 

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1certification from a purchaser in satisfaction of Service Use
2Tax as provided in Section 3-70 of the Service Use Tax Act if
3the purchaser provides the appropriate documentation as
4required by Section 3-70 of the Service Use Tax Act. A
5Manufacturer's Purchase Credit certification, accepted prior
6to October 1, 2003 or on or after September 1, 2004 by a
7serviceman as provided in Section 3-70 of the Service Use Tax
8Act, may be used by that serviceman to satisfy Service
9Occupation Tax liability in the amount claimed in the
10certification, not to exceed 6.25% of the receipts subject to
11tax from a qualifying purchase. A Manufacturer's Purchase
12Credit reported on any original or amended return filed under
13this Act after October 20, 2003 for reporting periods prior to
14September 1, 2004 shall be disallowed. Manufacturer's Purchase
15Credit reported on annual returns due on or after January 1,
162005 will be disallowed for periods prior to September 1, 2004.
17No Manufacturer's Purchase Credit may be used after September
1830, 2003 through August 31, 2004 to satisfy any tax liability
19imposed under this Act, including any audit liability.
20    If the serviceman's average monthly tax liability to the
21Department does not exceed $200, the Department may authorize
22his returns to be filed on a quarter annual basis, with the
23return for January, February and March of a given year being
24due by April 20 of such year; with the return for April, May
25and June of a given year being due by July 20 of such year; with
26the return for July, August and September of a given year being

 

 

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1due by October 20 of such year, and with the return for
2October, November and December of a given year being due by
3January 20 of the following year.
4    If the serviceman's average monthly tax liability to the
5Department does not exceed $50, the Department may authorize
6his returns to be filed on an annual basis, with the return for
7a given year being due by January 20 of the following year.
8    Such quarter annual and annual returns, as to form and
9substance, shall be subject to the same requirements as monthly
10returns.
11    Notwithstanding any other provision in this Act concerning
12the time within which a serviceman may file his return, in the
13case of any serviceman who ceases to engage in a kind of
14business which makes him responsible for filing returns under
15this Act, such serviceman shall file a final return under this
16Act with the Department not more than 1 month after
17discontinuing such business.
18    Beginning October 1, 1993, a taxpayer who has an average
19monthly tax liability of $150,000 or more shall make all
20payments required by rules of the Department by electronic
21funds transfer. Beginning October 1, 1994, a taxpayer who has
22an average monthly tax liability of $100,000 or more shall make
23all payments required by rules of the Department by electronic
24funds transfer. Beginning October 1, 1995, a taxpayer who has
25an average monthly tax liability of $50,000 or more shall make
26all payments required by rules of the Department by electronic

 

 

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1funds transfer. Beginning October 1, 2000, a taxpayer who has
2an annual tax liability of $200,000 or more shall make all
3payments required by rules of the Department by electronic
4funds transfer. The term "annual tax liability" shall be the
5sum of the taxpayer's liabilities under this Act, and under all
6other State and local occupation and use tax laws administered
7by the Department, for the immediately preceding calendar year.
8The term "average monthly tax liability" means the sum of the
9taxpayer's liabilities under this Act, and under all other
10State and local occupation and use tax laws administered by the
11Department, for the immediately preceding calendar year
12divided by 12. Beginning on October 1, 2002, a taxpayer who has
13a tax liability in the amount set forth in subsection (b) of
14Section 2505-210 of the Department of Revenue Law shall make
15all payments required by rules of the Department by electronic
16funds transfer.
17    Before August 1 of each year beginning in 1993, the
18Department shall notify all taxpayers required to make payments
19by electronic funds transfer. All taxpayers required to make
20payments by electronic funds transfer shall make those payments
21for a minimum of one year beginning on October 1.
22    Any taxpayer not required to make payments by electronic
23funds transfer may make payments by electronic funds transfer
24with the permission of the Department.
25    All taxpayers required to make payment by electronic funds
26transfer and any taxpayers authorized to voluntarily make

 

 

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1payments by electronic funds transfer shall make those payments
2in the manner authorized by the Department.
3    The Department shall adopt such rules as are necessary to
4effectuate a program of electronic funds transfer and the
5requirements of this Section.
6    Where a serviceman collects the tax with respect to the
7selling price of tangible personal property which he sells and
8the purchaser thereafter returns such tangible personal
9property and the serviceman refunds the selling price thereof
10to the purchaser, such serviceman shall also refund, to the
11purchaser, the tax so collected from the purchaser. When filing
12his return for the period in which he refunds such tax to the
13purchaser, the serviceman may deduct the amount of the tax so
14refunded by him to the purchaser from any other Service
15Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
16Use Tax which such serviceman may be required to pay or remit
17to the Department, as shown by such return, provided that the
18amount of the tax to be deducted shall previously have been
19remitted to the Department by such serviceman. If the
20serviceman shall not previously have remitted the amount of
21such tax to the Department, he shall be entitled to no
22deduction hereunder upon refunding such tax to the purchaser.
23    If experience indicates such action to be practicable, the
24Department may prescribe and furnish a combination or joint
25return which will enable servicemen, who are required to file
26returns hereunder and also under the Retailers' Occupation Tax

 

 

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1Act, the Use Tax Act or the Service Use Tax Act, to furnish all
2the return information required by all said Acts on the one
3form.
4    Where the serviceman has more than one business registered
5with the Department under separate registrations hereunder,
6such serviceman shall file separate returns for each registered
7business.
8    Beginning January 1, 1990, each month the Department shall
9pay into the Local Government Tax Fund the revenue realized for
10the preceding month from the 1% tax imposed under this Act on
11sales of food for human consumption which is to be consumed off
12the premises where it is sold (other than alcoholic beverages,
13soft drinks and food which has been prepared for immediate
14consumption) and prescription and nonprescription medicines,
15drugs, medical appliances, products classified as Class III
16medical devices by the United States Food and Drug
17Administration that are used for cancer treatment pursuant to a
18prescription, as well as any accessories and components related
19to those devices, and insulin, urine testing materials,
20syringes and needles used by diabetics.
21    Beginning January 1, 1990, each month the Department shall
22pay into the County and Mass Transit District Fund 4% of the
23revenue realized for the preceding month from the 6.25% general
24rate.
25    Beginning August 1, 2000, each month the Department shall
26pay into the County and Mass Transit District Fund 20% of the

 

 

SB3445- 173 -LRB100 20331 HLH 35618 b

1net revenue realized for the preceding month from the 1.25%
2rate on the selling price of motor fuel and gasohol.
3    Beginning January 1, 1990, each month the Department shall
4pay into the Local Government Tax Fund 16% of the revenue
5realized for the preceding month from the 6.25% general rate on
6transfers of tangible personal property.
7    Beginning August 1, 2000, each month the Department shall
8pay into the Local Government Tax Fund 80% of the net revenue
9realized for the preceding month from the 1.25% rate on the
10selling price of motor fuel and gasohol.
11    Beginning October 1, 2009, each month the Department shall
12pay into the Capital Projects Fund an amount that is equal to
13an amount estimated by the Department to represent 80% of the
14net revenue realized for the preceding month from the sale of
15candy, grooming and hygiene products, and soft drinks that had
16been taxed at a rate of 1% prior to September 1, 2009 but that
17are now taxed at 6.25%.
18    Beginning July 1, 2013, each month the Department shall pay
19into the Underground Storage Tank Fund from the proceeds
20collected under this Act, the Use Tax Act, the Service Use Tax
21Act, and the Retailers' Occupation Tax Act an amount equal to
22the average monthly deficit in the Underground Storage Tank
23Fund during the prior year, as certified annually by the
24Illinois Environmental Protection Agency, but the total
25payment into the Underground Storage Tank Fund under this Act,
26the Use Tax Act, the Service Use Tax Act, and the Retailers'

 

 

SB3445- 174 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 175 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 176 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 177 -LRB100 20331 HLH 35618 b

1thereto hereafter enacted, the following specified monthly
2installment of the amount requested in the certificate of the
3Chairman of the Metropolitan Pier and Exposition Authority
4provided under Section 8.25f of the State Finance Act, but not
5in excess of the sums designated as "Total Deposit", shall be
6deposited in the aggregate from collections under Section 9 of
7the Use Tax Act, Section 9 of the Service Use Tax Act, Section
89 of the Service Occupation Tax Act, and Section 3 of the
9Retailers' Occupation Tax Act into the McCormick Place
10Expansion Project Fund in the specified fiscal years.
11Fiscal YearTotal Deposit
121993         $0
131994 53,000,000
141995 58,000,000
151996 61,000,000
161997 64,000,000
171998 68,000,000
181999 71,000,000
192000 75,000,000
202001 80,000,000
212002 93,000,000
222003 99,000,000
232004103,000,000
242005108,000,000
252006113,000,000

 

 

SB3445- 178 -LRB100 20331 HLH 35618 b

12007119,000,000
22008126,000,000
32009132,000,000
42010139,000,000
52011146,000,000
62012153,000,000
72013161,000,000
82014170,000,000
92015179,000,000
102016189,000,000
112017199,000,000
122018210,000,000
132019221,000,000
142020233,000,000
152021246,000,000
162022260,000,000
172023275,000,000
182024 275,000,000
192025 275,000,000
202026 279,000,000
212027 292,000,000
222028 307,000,000
232029 322,000,000
242030 338,000,000
252031 350,000,000
262032 350,000,000

 

 

SB3445- 179 -LRB100 20331 HLH 35618 b

1and
2each fiscal year
3thereafter that bonds
4are outstanding under
5Section 13.2 of the
6Metropolitan Pier and
7Exposition Authority Act,
8but not after fiscal year 2060.
9    Beginning July 20, 1993 and in each month of each fiscal
10year thereafter, one-eighth of the amount requested in the
11certificate of the Chairman of the Metropolitan Pier and
12Exposition Authority for that fiscal year, less the amount
13deposited into the McCormick Place Expansion Project Fund by
14the State Treasurer in the respective month under subsection
15(g) of Section 13 of the Metropolitan Pier and Exposition
16Authority Act, plus cumulative deficiencies in the deposits
17required under this Section for previous months and years,
18shall be deposited into the McCormick Place Expansion Project
19Fund, until the full amount requested for the fiscal year, but
20not in excess of the amount specified above as "Total Deposit",
21has been deposited.
22    Subject to payment of amounts into the Build Illinois Fund
23and the McCormick Place Expansion Project Fund pursuant to the
24preceding paragraphs or in any amendments thereto hereafter
25enacted, beginning July 1, 1993 and ending on September 30,
262013, the Department shall each month pay into the Illinois Tax

 

 

SB3445- 180 -LRB100 20331 HLH 35618 b

1Increment Fund 0.27% of 80% of the net revenue realized for the
2preceding month from the 6.25% general rate on the selling
3price of tangible personal property.
4    Subject to payment of amounts into the Build Illinois Fund
5and the McCormick Place Expansion Project Fund pursuant to the
6preceding paragraphs or in any amendments thereto hereafter
7enacted, beginning with the receipt of the first report of
8taxes paid by an eligible business and continuing for a 25-year
9period, the Department shall each month pay into the Energy
10Infrastructure Fund 80% of the net revenue realized from the
116.25% general rate on the selling price of Illinois-mined coal
12that was sold to an eligible business. For purposes of this
13paragraph, the term "eligible business" means a new electric
14generating facility certified pursuant to Section 605-332 of
15the Department of Commerce and Economic Opportunity Law of the
16Civil Administrative Code of Illinois.
17    Subject to payment of amounts into the Build Illinois Fund,
18the McCormick Place Expansion Project Fund, the Illinois Tax
19Increment Fund, and the Energy Infrastructure Fund pursuant to
20the preceding paragraphs or in any amendments to this Section
21hereafter enacted, beginning on the first day of the first
22calendar month to occur on or after August 26, 2014 (the
23effective date of Public Act 98-1098) this amendatory Act of
24the 98th General Assembly, each month, from the collections
25made under Section 9 of the Use Tax Act, Section 9 of the
26Service Use Tax Act, Section 9 of the Service Occupation Tax

 

 

SB3445- 181 -LRB100 20331 HLH 35618 b

1Act, and Section 3 of the Retailers' Occupation Tax Act, the
2Department shall pay into the Tax Compliance and Administration
3Fund, to be used, subject to appropriation, to fund additional
4auditors and compliance personnel at the Department of Revenue,
5an amount equal to 1/12 of 5% of 80% of the cash receipts
6collected during the preceding fiscal year by the Audit Bureau
7of the Department under the Use Tax Act, the Service Use Tax
8Act, the Service Occupation Tax Act, the Retailers' Occupation
9Tax Act, and associated local occupation and use taxes
10administered by the Department.
11    Of the remainder of the moneys received by the Department
12pursuant to this Act, 75% shall be paid into the General
13Revenue Fund of the State Treasury and 25% shall be reserved in
14a special account and used only for the transfer to the Common
15School Fund as part of the monthly transfer from the General
16Revenue Fund in accordance with Section 8a of the State Finance
17Act.
18    The Department may, upon separate written notice to a
19taxpayer, require the taxpayer to prepare and file with the
20Department on a form prescribed by the Department within not
21less than 60 days after receipt of the notice an annual
22information return for the tax year specified in the notice.
23Such annual return to the Department shall include a statement
24of gross receipts as shown by the taxpayer's last Federal
25income tax return. If the total receipts of the business as
26reported in the Federal income tax return do not agree with the

 

 

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1gross receipts reported to the Department of Revenue for the
2same period, the taxpayer shall attach to his annual return a
3schedule showing a reconciliation of the 2 amounts and the
4reasons for the difference. The taxpayer's annual return to the
5Department shall also disclose the cost of goods sold by the
6taxpayer during the year covered by such return, opening and
7closing inventories of such goods for such year, cost of goods
8used from stock or taken from stock and given away by the
9taxpayer during such year, pay roll information of the
10taxpayer's business during such year and any additional
11reasonable information which the Department deems would be
12helpful in determining the accuracy of the monthly, quarterly
13or annual returns filed by such taxpayer as hereinbefore
14provided for in this Section.
15    If the annual information return required by this Section
16is not filed when and as required, the taxpayer shall be liable
17as follows:
18        (i) Until January 1, 1994, the taxpayer shall be liable
19    for a penalty equal to 1/6 of 1% of the tax due from such
20    taxpayer under this Act during the period to be covered by
21    the annual return for each month or fraction of a month
22    until such return is filed as required, the penalty to be
23    assessed and collected in the same manner as any other
24    penalty provided for in this Act.
25        (ii) On and after January 1, 1994, the taxpayer shall
26    be liable for a penalty as described in Section 3-4 of the

 

 

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1    Uniform Penalty and Interest Act.
2    The chief executive officer, proprietor, owner or highest
3ranking manager shall sign the annual return to certify the
4accuracy of the information contained therein. Any person who
5willfully signs the annual return containing false or
6inaccurate information shall be guilty of perjury and punished
7accordingly. The annual return form prescribed by the
8Department shall include a warning that the person signing the
9return may be liable for perjury.
10    The foregoing portion of this Section concerning the filing
11of an annual information return shall not apply to a serviceman
12who is not required to file an income tax return with the
13United States Government.
14    As soon as possible after the first day of each month, upon
15certification of the Department of Revenue, the Comptroller
16shall order transferred and the Treasurer shall transfer from
17the General Revenue Fund to the Motor Fuel Tax Fund an amount
18equal to 1.7% of 80% of the net revenue realized under this Act
19for the second preceding month. Beginning April 1, 2000, this
20transfer is no longer required and shall not be made.
21    Net revenue realized for a month shall be the revenue
22collected by the State pursuant to this Act, less the amount
23paid out during that month as refunds to taxpayers for
24overpayment of liability.
25    For greater simplicity of administration, it shall be
26permissible for manufacturers, importers and wholesalers whose

 

 

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1products are sold by numerous servicemen in Illinois, and who
2wish to do so, to assume the responsibility for accounting and
3paying to the Department all tax accruing under this Act with
4respect to such sales, if the servicemen who are affected do
5not make written objection to the Department to this
6arrangement.
7(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
8100-303, eff. 8-24-17; revised 10-31-17)
 
9    (Text of Section after amendment by P.A. 100-363)
10    Sec. 9. Each serviceman required or authorized to collect
11the tax herein imposed shall pay to the Department the amount
12of such tax at the time when he is required to file his return
13for the period during which such tax was collectible, less a
14discount of 2.1% prior to January 1, 1990, and 1.75% on and
15after January 1, 1990, or $5 per calendar year, whichever is
16greater, which is allowed to reimburse the serviceman for
17expenses incurred in collecting the tax, keeping records,
18preparing and filing returns, remitting the tax and supplying
19data to the Department on request. The discount allowed under
20this Section is allowed only for returns that are filed in the
21manner required by this Act. The Department may disallow the
22discount for servicemen whose certificate of registration is
23revoked at the time the return is filed, but only if the
24Department's decision to revoke the certificate of
25registration has become final.

 

 

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1    Where such tangible personal property is sold under a
2conditional sales contract, or under any other form of sale
3wherein the payment of the principal sum, or a part thereof, is
4extended beyond the close of the period for which the return is
5filed, the serviceman, in collecting the tax may collect, for
6each tax return period, only the tax applicable to the part of
7the selling price actually received during such tax return
8period.
9    Except as provided hereinafter in this Section, on or
10before the twentieth day of each calendar month, such
11serviceman shall file a return for the preceding calendar month
12in accordance with reasonable rules and regulations to be
13promulgated by the Department of Revenue. Such return shall be
14filed on a form prescribed by the Department and shall contain
15such information as the Department may reasonably require. On
16and after January 1, 2018, with respect to servicemen whose
17annual gross receipts average $20,000 or more, all returns
18required to be filed pursuant to this Act shall be filed
19electronically. Servicemen who demonstrate that they do not
20have access to the Internet or demonstrate hardship in filing
21electronically may petition the Department to waive the
22electronic filing requirement.
23    The Department may require returns to be filed on a
24quarterly basis. If so required, a return for each calendar
25quarter shall be filed on or before the twentieth day of the
26calendar month following the end of such calendar quarter. The

 

 

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1taxpayer shall also file a return with the Department for each
2of the first two months of each calendar quarter, on or before
3the twentieth day of the following calendar month, stating:
4        1. The name of the seller;
5        2. The address of the principal place of business from
6    which he engages in business as a serviceman in this State;
7        3. The total amount of taxable receipts received by him
8    during the preceding calendar month, including receipts
9    from charge and time sales, but less all deductions allowed
10    by law;
11        4. The amount of credit provided in Section 2d of this
12    Act;
13        5. The amount of tax due;
14        5-5. The signature of the taxpayer; and
15        6. Such other reasonable information as the Department
16    may require.
17    If a taxpayer fails to sign a return within 30 days after
18the proper notice and demand for signature by the Department,
19the return shall be considered valid and any amount shown to be
20due on the return shall be deemed assessed.
21    Prior to October 1, 2003, and on and after September 1,
222004 a serviceman may accept a Manufacturer's Purchase Credit
23certification from a purchaser in satisfaction of Service Use
24Tax as provided in Section 3-70 of the Service Use Tax Act if
25the purchaser provides the appropriate documentation as
26required by Section 3-70 of the Service Use Tax Act. A

 

 

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1Manufacturer's Purchase Credit certification, accepted prior
2to October 1, 2003 or on or after September 1, 2004 by a
3serviceman as provided in Section 3-70 of the Service Use Tax
4Act, may be used by that serviceman to satisfy Service
5Occupation Tax liability in the amount claimed in the
6certification, not to exceed 6.25% of the receipts subject to
7tax from a qualifying purchase. A Manufacturer's Purchase
8Credit reported on any original or amended return filed under
9this Act after October 20, 2003 for reporting periods prior to
10September 1, 2004 shall be disallowed. Manufacturer's Purchase
11Credit reported on annual returns due on or after January 1,
122005 will be disallowed for periods prior to September 1, 2004.
13No Manufacturer's Purchase Credit may be used after September
1430, 2003 through August 31, 2004 to satisfy any tax liability
15imposed under this Act, including any audit liability.
16    If the serviceman's average monthly tax liability to the
17Department does not exceed $200, the Department may authorize
18his returns to be filed on a quarter annual basis, with the
19return for January, February and March of a given year being
20due by April 20 of such year; with the return for April, May
21and June of a given year being due by July 20 of such year; with
22the return for July, August and September of a given year being
23due by October 20 of such year, and with the return for
24October, November and December of a given year being due by
25January 20 of the following year.
26    If the serviceman's average monthly tax liability to the

 

 

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1Department does not exceed $50, the Department may authorize
2his returns to be filed on an annual basis, with the return for
3a given year being due by January 20 of the following year.
4    Such quarter annual and annual returns, as to form and
5substance, shall be subject to the same requirements as monthly
6returns.
7    Notwithstanding any other provision in this Act concerning
8the time within which a serviceman may file his return, in the
9case of any serviceman who ceases to engage in a kind of
10business which makes him responsible for filing returns under
11this Act, such serviceman shall file a final return under this
12Act with the Department not more than 1 month after
13discontinuing such business.
14    Beginning October 1, 1993, a taxpayer who has an average
15monthly tax liability of $150,000 or more shall make all
16payments required by rules of the Department by electronic
17funds transfer. Beginning October 1, 1994, a taxpayer who has
18an average monthly tax liability of $100,000 or more shall make
19all payments required by rules of the Department by electronic
20funds transfer. Beginning October 1, 1995, a taxpayer who has
21an average monthly tax liability of $50,000 or more shall make
22all payments required by rules of the Department by electronic
23funds transfer. Beginning October 1, 2000, a taxpayer who has
24an annual tax liability of $200,000 or more shall make all
25payments required by rules of the Department by electronic
26funds transfer. The term "annual tax liability" shall be the

 

 

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

 

 

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

 

 

SB3445- 191 -LRB100 20331 HLH 35618 b

1with the Department under separate registrations hereunder,
2such serviceman shall file separate returns for each registered
3business.
4    Beginning January 1, 1990, each month the Department shall
5pay into the Local Government Tax Fund the revenue realized for
6the preceding month from the 1% tax imposed under this Act on
7sales of food for human consumption which is to be consumed off
8the premises where it is sold (other than alcoholic beverages,
9soft drinks and food which has been prepared for immediate
10consumption) and prescription and nonprescription medicines,
11drugs, medical appliances, products classified as Class III
12medical devices by the United States Food and Drug
13Administration that are used for cancer treatment pursuant to a
14prescription, as well as any accessories and components related
15to those devices, and insulin, urine testing materials,
16syringes and needles used by diabetics.
17    Beginning January 1, 1990, each month the Department shall
18pay into the County and Mass Transit District Fund 4% of the
19revenue realized for the preceding month from the 6.25% general
20rate.
21    Beginning August 1, 2000, each month the Department shall
22pay into the County and Mass Transit District Fund 20% of the
23net revenue realized for the preceding month from the 1.25%
24rate on the selling price of motor fuel and gasohol.
25    Beginning January 1, 1990, each month the Department shall
26pay into the Local Government Tax Fund 16% of the revenue

 

 

SB3445- 192 -LRB100 20331 HLH 35618 b

1realized for the preceding month from the 6.25% general rate on
2transfers of tangible personal property.
3    Beginning August 1, 2000, each month the Department shall
4pay into the Local Government Tax Fund 80% of the net revenue
5realized for the preceding month from the 1.25% rate on the
6selling price of motor fuel and gasohol.
7    Beginning October 1, 2009, each month the Department shall
8pay into the Capital Projects Fund an amount that is equal to
9an amount estimated by the Department to represent 80% of the
10net revenue realized for the preceding month from the sale of
11candy, grooming and hygiene products, and soft drinks that had
12been taxed at a rate of 1% prior to September 1, 2009 but that
13are now taxed at 6.25%.
14    Beginning July 1, 2013, each month the Department shall pay
15into the Underground Storage Tank Fund from the proceeds
16collected under this Act, the Use Tax Act, the Service Use Tax
17Act, and the Retailers' Occupation Tax Act an amount equal to
18the average monthly deficit in the Underground Storage Tank
19Fund during the prior year, as certified annually by the
20Illinois Environmental Protection Agency, but the total
21payment into the Underground Storage Tank Fund under this Act,
22the Use Tax Act, the Service Use Tax Act, and the Retailers'
23Occupation Tax Act shall not exceed $18,000,000 in any State
24fiscal year. As used in this paragraph, the "average monthly
25deficit" shall be equal to the difference between the average
26monthly claims for payment by the fund and the average monthly

 

 

SB3445- 193 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 194 -LRB100 20331 HLH 35618 b

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

 

 

SB3445- 195 -LRB100 20331 HLH 35618 b

1Budget (now Governor's Office of Management and Budget). If on
2the last business day of any month in which Bonds are
3outstanding pursuant to the Build Illinois Bond Act, the
4aggregate of the moneys deposited in the Build Illinois Bond
5Account in the Build Illinois Fund in such month shall be less
6than the amount required to be transferred in such month from
7the Build Illinois Bond Account to the Build Illinois Bond
8Retirement and Interest Fund pursuant to Section 13 of the
9Build Illinois Bond Act, an amount equal to such deficiency
10shall be immediately paid from other moneys received by the
11Department pursuant to the Tax Acts to the Build Illinois Fund;
12provided, however, that any amounts paid to the Build Illinois
13Fund in any fiscal year pursuant to this sentence shall be
14deemed to constitute payments pursuant to clause (b) of the
15preceding sentence and shall reduce the amount otherwise
16payable for such fiscal year pursuant to clause (b) of the
17preceding sentence. The moneys received by the Department
18pursuant to this Act and required to be deposited into the
19Build Illinois Fund are subject to the pledge, claim and charge
20set forth in Section 12 of the Build Illinois Bond Act.
21    Subject to payment of amounts into the Build Illinois Fund
22as provided in the preceding paragraph or in any amendment
23thereto hereafter enacted, the following specified monthly
24installment of the amount requested in the certificate of the
25Chairman of the Metropolitan Pier and Exposition Authority
26provided under Section 8.25f of the State Finance Act, but not

 

 

SB3445- 196 -LRB100 20331 HLH 35618 b

1in excess of the sums designated as "Total Deposit", shall be
2deposited in the aggregate from collections under Section 9 of
3the Use Tax Act, Section 9 of the Service Use Tax Act, Section
49 of the Service Occupation Tax Act, and Section 3 of the
5Retailers' Occupation Tax Act into the McCormick Place
6Expansion Project Fund in the specified fiscal years.
7Fiscal YearTotal Deposit
81993         $0
91994 53,000,000
101995 58,000,000
111996 61,000,000
121997 64,000,000
131998 68,000,000
141999 71,000,000
152000 75,000,000
162001 80,000,000
172002 93,000,000
182003 99,000,000
192004103,000,000
202005108,000,000
212006113,000,000
222007119,000,000
232008126,000,000
242009132,000,000
252010139,000,000

 

 

SB3445- 197 -LRB100 20331 HLH 35618 b

12011146,000,000
22012153,000,000
32013161,000,000
42014170,000,000
52015179,000,000
62016189,000,000
72017199,000,000
82018210,000,000
92019221,000,000
102020233,000,000
112021246,000,000
122022260,000,000
132023275,000,000
142024 275,000,000
152025 275,000,000
162026 279,000,000
172027 292,000,000
182028 307,000,000
192029 322,000,000
202030 338,000,000
212031 350,000,000
222032 350,000,000
23and
24each fiscal year
25thereafter that bonds
26are outstanding under

 

 

SB3445- 198 -LRB100 20331 HLH 35618 b

1Section 13.2 of the
2Metropolitan Pier and
3Exposition Authority Act,
4but not after fiscal year 2060.
5    Beginning July 20, 1993 and in each month of each fiscal
6year thereafter, one-eighth of the amount requested in the
7certificate of the Chairman of the Metropolitan Pier and
8Exposition Authority for that fiscal year, less the amount
9deposited into the McCormick Place Expansion Project Fund by
10the State Treasurer in the respective month under subsection
11(g) of Section 13 of the Metropolitan Pier and Exposition
12Authority Act, plus cumulative deficiencies in the deposits
13required under this Section for previous months and years,
14shall be deposited into the McCormick Place Expansion Project
15Fund, until the full amount requested for the fiscal year, but
16not in excess of the amount specified above as "Total Deposit",
17has been deposited.
18    Subject to payment of amounts into the Build Illinois Fund
19and the McCormick Place Expansion Project Fund pursuant to the
20preceding paragraphs or in any amendments thereto hereafter
21enacted, beginning July 1, 1993 and ending on September 30,
222013, the Department shall each month pay into the Illinois Tax
23Increment Fund 0.27% of 80% of the net revenue realized for the
24preceding month from the 6.25% general rate on the selling
25price of tangible personal property.
26    Subject to payment of amounts into the Build Illinois Fund

 

 

SB3445- 199 -LRB100 20331 HLH 35618 b

1and the McCormick Place Expansion Project Fund pursuant to the
2preceding paragraphs or in any amendments thereto hereafter
3enacted, beginning with the receipt of the first report of
4taxes paid by an eligible business and continuing for a 25-year
5period, the Department shall each month pay into the Energy
6Infrastructure Fund 80% of the net revenue realized from the
76.25% general rate on the selling price of Illinois-mined coal
8that was sold to an eligible business. For purposes of this
9paragraph, the term "eligible business" means a new electric
10generating facility certified pursuant to Section 605-332 of
11the Department of Commerce and Economic Opportunity Law of the
12Civil Administrative Code of Illinois.
13    Subject to payment of amounts into the Build Illinois Fund,
14the McCormick Place Expansion Project Fund, the Illinois Tax
15Increment Fund, and the Energy Infrastructure Fund pursuant to
16the preceding paragraphs or in any amendments to this Section
17hereafter enacted, beginning on the first day of the first
18calendar month to occur on or after August 26, 2014 (the
19effective date of Public Act 98-1098) this amendatory Act of
20the 98th General Assembly, each month, from the collections
21made under Section 9 of the Use Tax Act, Section 9 of the
22Service Use Tax Act, Section 9 of the Service Occupation Tax
23Act, and Section 3 of the Retailers' Occupation Tax Act, the
24Department shall pay into the Tax Compliance and Administration
25Fund, to be used, subject to appropriation, to fund additional
26auditors and compliance personnel at the Department of Revenue,

 

 

SB3445- 200 -LRB100 20331 HLH 35618 b

1an amount equal to 1/12 of 5% of 80% of the cash receipts
2collected during the preceding fiscal year by the Audit Bureau
3of the Department under the Use Tax Act, the Service Use Tax
4Act, the Service Occupation Tax Act, the Retailers' Occupation
5Tax Act, and associated local occupation and use taxes
6administered by the Department.
7    Subject to payments of amounts into the Build Illinois
8Fund, the McCormick Place Expansion Project Fund, the Illinois
9Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
10Compliance and Administration Fund as provided in this Section,
11beginning on July 1, 2018 the Department shall pay each month
12into the Downstate Public Transportation Fund the moneys
13required to be so paid under Section 2-3 of the Downstate
14Public Transportation Act.
15    Of the remainder of the moneys received by the Department
16pursuant to this Act, 75% shall be paid into the General
17Revenue Fund of the State Treasury and 25% shall be reserved in
18a special account and used only for the transfer to the Common
19School Fund as part of the monthly transfer from the General
20Revenue Fund in accordance with Section 8a of the State Finance
21Act.
22    The Department may, upon separate written notice to a
23taxpayer, require the taxpayer to prepare and file with the
24Department on a form prescribed by the Department within not
25less than 60 days after receipt of the notice an annual
26information return for the tax year specified in the notice.

 

 

SB3445- 201 -LRB100 20331 HLH 35618 b

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

 

 

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1    assessed and collected in the same manner as any other
2    penalty provided for in this Act.
3        (ii) On and after January 1, 1994, the taxpayer shall
4    be liable for a penalty as described in Section 3-4 of the
5    Uniform Penalty and Interest Act.
6    The chief executive officer, proprietor, owner or highest
7ranking manager shall sign the annual return to certify the
8accuracy of the information contained therein. Any person who
9willfully signs the annual return containing false or
10inaccurate information shall be guilty of perjury and punished
11accordingly. The annual return form prescribed by the
12Department shall include a warning that the person signing the
13return may be liable for perjury.
14    The foregoing portion of this Section concerning the filing
15of an annual information return shall not apply to a serviceman
16who is not required to file an income tax return with the
17United States Government.
18    As soon as possible after the first day of each month, upon
19certification of the Department of Revenue, the Comptroller
20shall order transferred and the Treasurer shall transfer from
21the General Revenue Fund to the Motor Fuel Tax Fund an amount
22equal to 1.7% of 80% of the net revenue realized under this Act
23for the second preceding month. Beginning April 1, 2000, this
24transfer is no longer required and shall not be made.
25    Net revenue realized for a month shall be the revenue
26collected by the State pursuant to this Act, less the amount

 

 

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1paid out during that month as refunds to taxpayers for
2overpayment of liability.
3    For greater simplicity of administration, it shall be
4permissible for manufacturers, importers and wholesalers whose
5products are sold by numerous servicemen in Illinois, and who
6wish to do so, to assume the responsibility for accounting and
7paying to the Department all tax accruing under this Act with
8respect to such sales, if the servicemen who are affected do
9not make written objection to the Department to this
10arrangement.
11(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
12100-303, eff. 8-24-17; 100-363, eff. 7-1-18; revised
1310-31-17.)
 
14    Section 45. The Retailers' Occupation Tax Act is amended by
15changing Sections 2-5, 2-5.5, 3, and 5j as follows:
 
16    (35 ILCS 120/2-5)
17    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
18sale of the following tangible personal property are exempt
19from the tax imposed by this Act:
20        (1) Farm chemicals.
21        (2) Farm machinery and equipment, both new and used,
22    including that manufactured on special order, certified by
23    the purchaser to be used primarily for production
24    agriculture or State or federal agricultural programs,

 

 

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

 

 

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1    the computer-assisted operation of production agriculture
2    facilities, equipment, and activities such as, but not
3    limited to, the collection, monitoring, and correlation of
4    animal and crop data for the purpose of formulating animal
5    diets and agricultural chemicals. This item (2) is exempt
6    from the provisions of Section 2-70.
7        (3) Until July 1, 2003, distillation machinery and
8    equipment, sold as a unit or kit, assembled or installed by
9    the retailer, certified by the user to be used only for the
10    production of ethyl alcohol that will be used for
11    consumption as motor fuel or as a component of motor fuel
12    for the personal use of the user, and not subject to sale
13    or resale.
14        (4) Until July 1, 2003 and beginning again September 1,
15    2004 through August 30, 2014, graphic arts machinery and
16    equipment, including repair and replacement parts, both
17    new and used, and including that manufactured on special
18    order or purchased for lease, certified by the purchaser to
19    be used primarily for graphic arts production. Equipment
20    includes chemicals or chemicals acting as catalysts but
21    only if the chemicals or chemicals acting as catalysts
22    effect a direct and immediate change upon a graphic arts
23    product. Beginning on July 1, 2017, graphic arts machinery
24    and equipment is included in the manufacturing and
25    assembling machinery and equipment exemption under
26    paragraph (14).

 

 

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1        (5) A motor vehicle that is used for automobile
2    renting, as defined in the Automobile Renting Occupation
3    and Use Tax Act. This paragraph is exempt from the
4    provisions of Section 2-70.
5        (6) Personal property sold by a teacher-sponsored
6    student organization affiliated with an elementary or
7    secondary school located in Illinois.
8        (7) Until July 1, 2003, proceeds of that portion of the
9    selling price of a passenger car the sale of which is
10    subject to the Replacement Vehicle Tax.
11        (8) Personal property sold to an Illinois county fair
12    association for use in conducting, operating, or promoting
13    the county fair.
14        (9) Personal property sold to a not-for-profit arts or
15    cultural organization that establishes, by proof required
16    by the Department by rule, that it has received an
17    exemption under Section 501(c)(3) of the Internal Revenue
18    Code and that is organized and operated primarily for the
19    presentation or support of arts or cultural programming,
20    activities, or services. These organizations include, but
21    are not limited to, music and dramatic arts organizations
22    such as symphony orchestras and theatrical groups, arts and
23    cultural service organizations, local arts councils,
24    visual arts organizations, and media arts organizations.
25    On and after July 1, 2001 (the effective date of Public Act
26    92-35) this amendatory Act of the 92nd General Assembly,

 

 

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1    however, an entity otherwise eligible for this exemption
2    shall not make tax-free purchases unless it has an active
3    identification number issued by the Department.
4        (10) Personal property sold by a corporation, society,
5    association, foundation, institution, or organization,
6    other than a limited liability company, that is organized
7    and operated as a not-for-profit service enterprise for the
8    benefit of persons 65 years of age or older if the personal
9    property was not purchased by the enterprise for the
10    purpose of resale by the enterprise.
11        (11) Personal property sold to a governmental body, to
12    a corporation, society, association, foundation, or
13    institution organized and operated exclusively for
14    charitable, religious, or educational purposes, or to a
15    not-for-profit corporation, society, association,
16    foundation, institution, or organization that has no
17    compensated officers or employees and that is organized and
18    operated primarily for the recreation of persons 55 years
19    of age or older. A limited liability company may qualify
20    for the exemption under this paragraph only if the limited
21    liability company is organized and operated exclusively
22    for educational purposes. On and after July 1, 1987,
23    however, no entity otherwise eligible for this exemption
24    shall make tax-free purchases unless it has an active
25    identification number issued by the Department.
26        (12) (Blank).

 

 

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1        (12-5) On and after July 1, 2003 and through June 30,
2    2004, motor vehicles of the second division with a gross
3    vehicle weight in excess of 8,000 pounds that are subject
4    to the commercial distribution fee imposed under Section
5    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
6    2004 and through June 30, 2005, the use in this State of
7    motor vehicles of the second division: (i) with a gross
8    vehicle weight rating in excess of 8,000 pounds; (ii) that
9    are subject to the commercial distribution fee imposed
10    under Section 3-815.1 of the Illinois Vehicle Code; and
11    (iii) that are primarily used for commercial purposes.
12    Through June 30, 2005, this exemption applies to repair and
13    replacement parts added after the initial purchase of such
14    a motor vehicle if that motor vehicle is used in a manner
15    that would qualify for the rolling stock exemption
16    otherwise provided for in this Act. For purposes of this
17    paragraph, "used for commercial purposes" means the
18    transportation of persons or property in furtherance of any
19    commercial or industrial enterprise whether for-hire or
20    not.
21        (13) Proceeds from sales to owners, lessors, or
22    shippers of tangible personal property that is utilized by
23    interstate carriers for hire for use as rolling stock
24    moving in interstate commerce and equipment operated by a
25    telecommunications provider, licensed as a common carrier
26    by the Federal Communications Commission, which is

 

 

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1    permanently installed in or affixed to aircraft moving in
2    interstate commerce.
3        (14) Machinery and equipment that will be used by the
4    purchaser, or a lessee of the purchaser, primarily in the
5    process of manufacturing or assembling tangible personal
6    property for wholesale or retail sale or lease, whether the
7    sale or lease is made directly by the manufacturer or by
8    some other person, whether the materials used in the
9    process are owned by the manufacturer or some other person,
10    or whether the sale or lease is made apart from or as an
11    incident to the seller's engaging in the service occupation
12    of producing machines, tools, dies, jigs, patterns,
13    gauges, or other similar items of no commercial value on
14    special order for a particular purchaser. The exemption
15    provided by this paragraph (14) does not include machinery
16    and equipment used in (i) the generation of electricity for
17    wholesale or retail sale; (ii) the generation or treatment
18    of natural or artificial gas for wholesale or retail sale
19    that is delivered to customers through pipes, pipelines, or
20    mains; or (iii) the treatment of water for wholesale or
21    retail sale that is delivered to customers through pipes,
22    pipelines, or mains. The provisions of Public Act 98-583
23    are declaratory of existing law as to the meaning and scope
24    of this exemption. Beginning on July 1, 2017, the exemption
25    provided by this paragraph (14) includes, but is not
26    limited to, graphic arts machinery and equipment, as

 

 

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1    defined in paragraph (4) of this Section.
2        (15) Proceeds of mandatory service charges separately
3    stated on customers' bills for purchase and consumption of
4    food and beverages, to the extent that the proceeds of the
5    service charge are in fact turned over as tips or as a
6    substitute for tips to the employees who participate
7    directly in preparing, serving, hosting or cleaning up the
8    food or beverage function with respect to which the service
9    charge is imposed.
10        (16) Petroleum products sold to a purchaser if the
11    seller is prohibited by federal law from charging tax to
12    the purchaser.
13        (17) Tangible personal property sold to a common
14    carrier by rail or motor that receives the physical
15    possession of the property in Illinois and that transports
16    the property, or shares with another common carrier in the
17    transportation of the property, out of Illinois on a
18    standard uniform bill of lading showing the seller of the
19    property as the shipper or consignor of the property to a
20    destination outside Illinois, for use outside Illinois.
21        (18) Legal tender, currency, medallions, or gold or
22    silver coinage issued by the State of Illinois, the
23    government of the United States of America, or the
24    government of any foreign country, and bullion.
25        (19) Until July 1, 2003, oil field exploration,
26    drilling, and production equipment, including (i) rigs and

 

 

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

 

 

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1        (22) Until June 30, 2013, fuel and petroleum products
2    sold to or used by an air carrier, certified by the carrier
3    to be used for consumption, shipment, or storage in the
4    conduct of its business as an air common carrier, for a
5    flight destined for or returning from a location or
6    locations outside the United States without regard to
7    previous or subsequent domestic stopovers.
8        Beginning July 1, 2013, fuel and petroleum products
9    sold to or used by an air carrier, certified by the carrier
10    to be used for consumption, shipment, or storage in the
11    conduct of its business as an air common carrier, for a
12    flight that (i) is engaged in foreign trade or is engaged
13    in trade between the United States and any of its
14    possessions and (ii) transports at least one individual or
15    package for hire from the city of origination to the city
16    of final destination on the same aircraft, without regard
17    to a change in the flight number of that aircraft.
18        (23) A transaction in which the purchase order is
19    received by a florist who is located outside Illinois, but
20    who has a florist located in Illinois deliver the property
21    to the purchaser or the purchaser's donee in Illinois.
22        (24) Fuel consumed or used in the operation of ships,
23    barges, or vessels that are used primarily in or for the
24    transportation of property or the conveyance of persons for
25    hire on rivers bordering on this State if the fuel is
26    delivered by the seller to the purchaser's barge, ship, or

 

 

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

 

 

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1    title the vehicle in the state in which the purchaser is a
2    resident within 30 days after the sale and of the fact of
3    the payment to the State of Illinois of tax in an amount
4    equivalent to the state's rate of tax on taxable property
5    in his or her state of residence and shall submit the
6    statement to the appropriate tax collection agency in his
7    or her state of residence. In addition, the retailer must
8    retain a signed copy of the statement in his or her
9    records. Nothing in this item shall be construed to require
10    the removal of the vehicle from this state following the
11    filing of an intent to title the vehicle in the purchaser's
12    state of residence if the purchaser titles the vehicle in
13    his or her state of residence within 30 days after the date
14    of sale. The tax collected under this Act in accordance
15    with this item (25-5) shall be proportionately distributed
16    as if the tax were collected at the 6.25% general rate
17    imposed under this Act.
18        (25-7) Beginning on July 1, 2007, no tax is imposed
19    under this Act on the sale of an aircraft, as defined in
20    Section 3 of the Illinois Aeronautics Act, if all of the
21    following conditions are met:
22            (1) the aircraft leaves this State within 15 days
23        after the later of either the issuance of the final
24        billing for the sale of the aircraft, or the authorized
25        approval for return to service, completion of the
26        maintenance record entry, and completion of the test

 

 

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1        flight and ground test for inspection, as required by
2        14 C.F.R. 91.407;
3            (2) the aircraft is not based or registered in this
4        State after the sale of the aircraft; and
5            (3) the seller retains in his or her books and
6        records and provides to the Department a signed and
7        dated certification from the purchaser, on a form
8        prescribed by the Department, certifying that the
9        requirements of this item (25-7) are met. The
10        certificate must also include the name and address of
11        the purchaser, the address of the location where the
12        aircraft is to be titled or registered, the address of
13        the primary physical location of the aircraft, and
14        other information that the Department may reasonably
15        require.
16        For purposes of this item (25-7):
17        "Based in this State" means hangared, stored, or
18    otherwise used, excluding post-sale customizations as
19    defined in this Section, for 10 or more days in each
20    12-month period immediately following the date of the sale
21    of the aircraft.
22        "Registered in this State" means an aircraft
23    registered with the Department of Transportation,
24    Aeronautics Division, or titled or registered with the
25    Federal Aviation Administration to an address located in
26    this State.

 

 

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1        This paragraph (25-7) is exempt from the provisions of
2    Section 2-70.
3        (26) Semen used for artificial insemination of
4    livestock for direct agricultural production. </