Public Act 100-1171
 
SB3445 EnrolledLRB100 20331 HLH 35618 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Renewable Energy, Energy Efficiency, and
Coal Resources Development Law of 1997 is amended by changing
Section 6-5 and by adding Section 6-8 as follows:
 
    (20 ILCS 687/6-5)
    (Section scheduled to be repealed on December 31, 2020)
    Sec. 6-5. Renewable Energy Resources and Coal Technology
Development Assistance Charge.
    (a) Notwithstanding the provisions of Section 16-111 of the
Public Utilities Act but subject to subsection (e) of this
Section, each public utility, electric cooperative, as defined
in Section 3.4 of the Electric Supplier Act, and municipal
utility, as referenced in Section 3-105 of the Public Utilities
Act, that is engaged in the delivery of electricity or the
distribution of natural gas within the State of Illinois shall,
effective January 1, 1998, assess each of its customer accounts
a monthly Renewable Energy Resources and Coal Technology
Development Assistance Charge. The delivering public utility,
municipal electric or gas utility, or electric or gas
cooperative for a self-assessing purchaser remains subject to
the collection of the fee imposed by this Section. The monthly
charge shall be as follows:
        (1) $0.05 per month on each account for residential
    electric service as defined in Section 13 of the Energy
    Assistance Act;
        (2) $0.05 per month on each account for residential gas
    service as defined in Section 13 of the Energy Assistance
    Act;
        (3) $0.50 per month on each account for nonresidential
    electric service, as defined in Section 13 of the Energy
    Assistance Act, which had less than 10 megawatts of peak
    demand during the previous calendar year;
        (4) $0.50 per month on each account for nonresidential
    gas service, as defined in Section 13 of the Energy
    Assistance Act, which had distributed to it less than
    4,000,000 therms of gas during the previous calendar year;
        (5) $37.50 per month on each account for nonresidential
    electric service, as defined in Section 13 of the Energy
    Assistance Act, which had 10 megawatts or greater of peak
    demand during the previous calendar year; and
        (6) $37.50 per month on each account for nonresidential
    gas service, as defined in Section 13 of the Energy
    Assistance Act, which had 4,000,000 or more therms of gas
    distributed to it during the previous calendar year.
    (b) The Renewable Energy Resources and Coal Technology
Development Assistance Charge assessed by electric and gas
public utilities shall be considered a charge for public
utility service.
    (c) Fifty percent of the moneys collected pursuant to this
Section shall be deposited in the Renewable Energy Resources
Trust Fund by the Department of Revenue. From those funds,
$2,000,000 may be used annually by the Department to provide
grants to the Illinois Green Economy Network for the purposes
of funding education and training for renewable energy and
energy efficiency technology and for the operation and services
of the Illinois Green Economy Network. The remaining 50 percent
of the moneys collected pursuant to this Section shall be
deposited in the Coal Technology Development Assistance Fund by
the Department of Revenue for the exclusive purposes of (1)
capturing or sequestering carbon emissions produced by coal
combustion; (2) supporting research on the capture and
sequestration of carbon emissions produced by coal combustion;
and (3) improving coal miner safety.
    (d) By the 20th day of the month following the month in
which the charges imposed by this Section were collected, each
utility and alternative retail electric supplier collecting
charges pursuant to this Section shall remit to the Department
of Revenue for deposit in the Renewable Energy Resources Trust
Fund and the Coal Technology Development Assistance Fund all
moneys received as payment of the charge provided for in this
Section on a return prescribed and furnished by the Department
of Revenue showing such information as the Department of
Revenue may reasonably require.
    If any payment provided for in this Section exceeds the
utility or alternate retail electric supplier's liabilities
under this Act, as shown on an original return, the utility or
alternative retail electric supplier may credit the excess
payment against liability subsequently to be remitted to the
Department of Revenue under this Act.
    (e) The charges imposed by this Section shall only apply to
customers of municipal electric or gas utilities and electric
or gas cooperatives if the municipal electric or gas utility or
electric or gas cooperative makes an affirmative decision to
impose the charge. If a municipal electric or gas utility or an
electric or gas cooperative makes an affirmative decision to
impose the charge provided by this Section, the municipal
electric or gas utility or electric or gas cooperative shall
inform the Department of Revenue in writing of such decision
when it begins to impose the charge. If a municipal electric or
gas utility or electric or gas cooperative does not assess this
charge, its customers shall not be eligible for the Renewable
Energy Resources Program.
    (f) The Department of Revenue may establish such rules as
it deems necessary to implement this Section.
(Source: P.A. 100-402, eff. 8-25-17.)
 
    (20 ILCS 687/6-8 new)
    Sec. 6-8. Application of Retailers' Occupation Tax
provisions. All the provisions of Sections 4, 5, 5a, 5b, 5c,
5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12,
and 13 of the Retailers' Occupation Tax Act that are not
inconsistent with this Act apply, as far as practicable, to the
surcharge imposed by this Act to the same extent as if those
provisions were included in this Act. References in the
incorporated Sections of the Retailers' Occupation Tax Act to
retailers, to sellers, or to persons engaged in the business of
selling tangible personal property mean persons required to
remit the charge imposed under this Act.
 
    Section 15. The Department of Revenue Law of the Civil
Administrative Code of Illinois is amended by changing Section
2505-210 as follows:
 
    (20 ILCS 2505/2505-210)  (was 20 ILCS 2505/39c-1)
    Sec. 2505-210. Electronic funds transfer.
    (a) The Department may provide means by which persons
having a tax liability under any Act administered by the
Department may use electronic funds transfer to pay the tax
liability.
    (b) Mandatory payment by electronic funds transfer.
Beginning on October 1, 2002, and through September 30, 2010, a
taxpayer who has an annual tax liability of $200,000 or more
shall make all payments of that tax to the Department by
electronic funds transfer. Beginning October 1, 2010, a
taxpayer (other than an individual taxpayer) who has an annual
tax liability of $20,000 or more and an individual taxpayer who
has an annual tax liability of $200,000 or more shall make all
payments of that tax to the Department by electronic funds
transfer. Before August 1 of each year, beginning in 2002, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1. For purposes
of this subsection (b), the term "annual tax liability" means,
except as provided in subsections (c) and (d) of this Section,
the sum of the taxpayer's liabilities under a tax Act
administered by the Department, except the Motor Fuel Tax Law
and the Environmental Impact Fee Law, for the immediately
preceding calendar year.
    (c) For purposes of subsection (b), the term "annual tax
liability" means, for a taxpayer that incurs a tax liability
under the Retailers' Occupation Tax Act, Service Occupation Tax
Act, Use Tax Act, Service Use Tax Act, or any other State or
local occupation or use tax law that is administered by the
Department, the sum of the taxpayer's liabilities under the
Retailers' Occupation Tax Act, Service Occupation Tax Act, Use
Tax Act, Service Use Tax Act, and all other State and local
occupation and use tax laws administered by the Department for
the immediately preceding calendar year.
    (d) For purposes of subsection (b), the term "annual tax
liability" means, for a taxpayer that incurs an Illinois income
tax liability, the greater of:
        (1) the amount of the taxpayer's tax liability under
    Article 7 of the Illinois Income Tax Act for the
    immediately preceding calendar year; or
        (2) the taxpayer's estimated tax payment obligation
    under Article 8 of the Illinois Income Tax Act for the
    immediately preceding calendar year.
    (e) The Department shall adopt such rules as are necessary
to effectuate a program of electronic funds transfer and the
requirements of this Section.
(Source: P.A. 96-1027, eff. 7-12-10.)
 
    Section 20. The State Finance Act is amended by changing
Section 6z-18 as follows:
 
    (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
    Sec. 6z-18. Local Government Tax Fund. A portion of the
money paid into the Local Government Tax Fund from sales of
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act and the Service Occupation Tax
Act food for human consumption which is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks and food which has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances and insulin, urine testing
materials, syringes and needles used by diabetics, which
occurred in municipalities, shall be distributed to each
municipality based upon the sales which occurred in that
municipality. The remainder shall be distributed to each county
based upon the sales which occurred in the unincorporated area
of that county.
    A portion of the money paid into the Local Government Tax
Fund from the 6.25% general use tax rate on the selling price
of tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by any agency of this State's government shall be
distributed to municipalities as provided in this paragraph.
Each municipality shall receive the amount attributable to
sales for which Illinois addresses for titling or registration
purposes are given as being in such municipality. The remainder
of the money paid into the Local Government Tax Fund from such
sales shall be distributed to counties. Each county shall
receive the amount attributable to sales for which Illinois
addresses for titling or registration purposes are given as
being located in the unincorporated area of such county.
    A portion of the money paid into the Local Government Tax
Fund from the 6.25% general rate (and, beginning July 1, 2000
and through December 31, 2000, the 1.25% rate on motor fuel and
gasohol, and beginning on August 6, 2010 through August 15,
2010, the 1.25% rate on sales tax holiday items) on sales
subject to taxation under the Retailers' Occupation Tax Act and
the Service Occupation Tax Act, which occurred in
municipalities, shall be distributed to each municipality,
based upon the sales which occurred in that municipality. The
remainder shall be distributed to each county, based upon the
sales which occurred in the unincorporated area of such county.
    For the purpose of determining allocation to the local
government unit, a retail sale by a producer of coal or other
mineral mined in Illinois is a sale at retail at the place
where the coal or other mineral mined in Illinois is extracted
from the earth. This paragraph does not apply to coal or other
mineral when it is delivered or shipped by the seller to the
purchaser at a point outside Illinois so that the sale is
exempt under the United States Constitution as a sale in
interstate or foreign commerce.
    Whenever the Department determines that a refund of money
paid into the Local Government Tax Fund should be made to a
claimant instead of issuing a credit memorandum, the Department
shall notify the State Comptroller, who shall cause the order
to be drawn for the amount specified, and to the person named,
in such notification from the Department. Such refund shall be
paid by the State Treasurer out of the Local Government Tax
Fund.
    As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected during the second
preceding calendar month for sales within a STAR bond district
and deposited into the Local Government Tax Fund, less 3% of
that amount, which shall be transferred into the Tax Compliance
and Administration Fund and shall be used by the Department,
subject to appropriation, to cover the costs of the Department
in administering the Innovation Development and Economy Act.
    After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities
and counties, the municipalities and counties to be those
entitled to distribution of taxes or penalties paid to the
Department during the second preceding calendar month. The
amount to be paid to each municipality or county shall be the
amount (not including credit memoranda) collected during the
second preceding calendar month by the Department and paid into
the Local Government Tax Fund, plus an amount the Department
determines is necessary to offset any amounts which were
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department, and not including
any amount which the Department determines is necessary to
offset any amounts which are payable to a different taxing body
but were erroneously paid to the municipality or county, and
not including any amounts that are transferred to the STAR
Bonds Revenue Fund. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and counties, provided for in this Section to be
given to the Comptroller by the Department, the Comptroller
shall cause the orders to be drawn for the respective amounts
in accordance with the directions contained in such
certification.
    When certifying the amount of monthly disbursement to a
municipality or county under this Section, the Department shall
increase or decrease that amount by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the 6
months preceding the time a misallocation is discovered.
    The provisions directing the distributions from the
special fund in the State Treasury provided for in this Section
shall constitute an irrevocable and continuing appropriation
of all amounts as provided herein. The State Treasurer and
State Comptroller are hereby authorized to make distributions
as provided in this Section.
    In construing any development, redevelopment, annexation,
preannexation or other lawful agreement in effect prior to
September 1, 1990, which describes or refers to receipts from a
county or municipal retailers' occupation tax, use tax or
service occupation tax which now cannot be imposed, such
description or reference shall be deemed to include the
replacement revenue for such abolished taxes, distributed from
the Local Government Tax Fund.
    As soon as possible after the effective date of this
amendatory Act of the 98th General Assembly, the State
Comptroller shall order and the State Treasurer shall transfer
$6,600,000 from the Local Government Tax Fund to the Illinois
State Medical Disciplinary Fund.
(Source: P.A. 97-333, eff. 8-12-11; 98-3, eff. 3-8-13.)
 
    Section 25. The Illinois Income Tax Act is amended by
changing Section 901 and by adding Section 703A as follows:
 
    (35 ILCS 5/703A new)
    Sec. 703A. Information for reportable payment
transactions. Every person required under Section 6050W of the
Internal Revenue Code to file federal Form 1099-K, Third-Party
Payment Card and Third Party Network Transactions, identifying
a reportable payment transaction to a payee with an Illinois
address shall furnish a copy to the Department at such time and
in such manner as the Department may prescribe.
 
    (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
    Sec. 901. Collection authority.
    (a) In general. The Department shall collect the taxes
imposed by this Act. The Department shall collect certified
past due child support amounts under Section 2505-650 of the
Department of Revenue Law of the Civil Administrative Code of
Illinois. Except as provided in subsections (b), (c), (e), (f),
(g), and (h) of this Section, money collected pursuant to
subsections (a) and (b) of Section 201 of this Act shall be
paid into the General Revenue Fund in the State treasury; money
collected pursuant to subsections (c) and (d) of Section 201 of
this Act shall be paid into the Personal Property Tax
Replacement Fund, a special fund in the State Treasury; and
money collected under Section 2505-650 of the Department of
Revenue Law of the Civil Administrative Code of Illinois (20
ILCS 2505/2505-650) shall be paid into the Child Support
Enforcement Trust Fund, a special fund outside the State
Treasury, or to the State Disbursement Unit established under
Section 10-26 of the Illinois Public Aid Code, as directed by
the Department of Healthcare and Family Services.
    (b) Local Government Distributive Fund. Beginning August
1, 1969, and continuing through June 30, 1994, the Treasurer
shall transfer each month from the General Revenue Fund to a
special fund in the State treasury, to be known as the "Local
Government Distributive Fund", an amount equal to 1/12 of the
net revenue realized from the tax imposed by subsections (a)
and (b) of Section 201 of this Act during the preceding month.
Beginning July 1, 1994, and continuing through June 30, 1995,
the Treasurer shall transfer each month from the General
Revenue Fund to the Local Government Distributive Fund an
amount equal to 1/11 of the net revenue realized from the tax
imposed by subsections (a) and (b) of Section 201 of this Act
during the preceding month. Beginning July 1, 1995 and
continuing through January 31, 2011, the Treasurer shall
transfer each month from the General Revenue Fund to the Local
Government Distributive Fund an amount equal to the net of (i)
1/10 of the net revenue realized from the tax imposed by
subsections (a) and (b) of Section 201 of the Illinois Income
Tax Act during the preceding month (ii) minus, beginning July
1, 2003 and ending June 30, 2004, $6,666,666, and beginning
July 1, 2004, zero. Beginning February 1, 2011, and continuing
through January 31, 2015, the Treasurer shall transfer each
month from the General Revenue Fund to the Local Government
Distributive Fund an amount equal to the sum of (i) 6% (10% of
the ratio of the 3% individual income tax rate prior to 2011 to
the 5% individual income tax rate after 2010) of the net
revenue realized from the tax imposed by subsections (a) and
(b) of Section 201 of this Act upon individuals, trusts, and
estates during the preceding month and (ii) 6.86% (10% of the
ratio of the 4.8% corporate income tax rate prior to 2011 to
the 7% corporate income tax rate after 2010) of the net revenue
realized from the tax imposed by subsections (a) and (b) of
Section 201 of this Act upon corporations during the preceding
month. Beginning February 1, 2015 and continuing through July
31, 2017, the Treasurer shall transfer each month from the
General Revenue Fund to the Local Government Distributive Fund
an amount equal to the sum of (i) 8% (10% of the ratio of the 3%
individual income tax rate prior to 2011 to the 3.75%
individual income tax rate after 2014) of the net revenue
realized from the tax imposed by subsections (a) and (b) of
Section 201 of this Act upon individuals, trusts, and estates
during the preceding month and (ii) 9.14% (10% of the ratio of
the 4.8% corporate income tax rate prior to 2011 to the 5.25%
corporate income tax rate after 2014) of the net revenue
realized from the tax imposed by subsections (a) and (b) of
Section 201 of this Act upon corporations during the preceding
month. Beginning August 1, 2017, the Treasurer shall transfer
each month from the General Revenue Fund to the Local
Government Distributive Fund an amount equal to the sum of (i)
6.06% (10% of the ratio of the 3% individual income tax rate
prior to 2011 to the 4.95% individual income tax rate after
July 1, 2017) of the net revenue realized from the tax imposed
by subsections (a) and (b) of Section 201 of this Act upon
individuals, trusts, and estates during the preceding month and
(ii) 6.85% (10% of the ratio of the 4.8% corporate income tax
rate prior to 2011 to the 7% corporate income tax rate after
July 1, 2017) of the net revenue realized from the tax imposed
by subsections (a) and (b) of Section 201 of this Act upon
corporations during the preceding month. Net revenue realized
for a month shall be defined as the revenue from the tax
imposed by subsections (a) and (b) of Section 201 of this Act
which is deposited in the General Revenue Fund, the Education
Assistance Fund, the Income Tax Surcharge Local Government
Distributive Fund, the Fund for the Advancement of Education,
and the Commitment to Human Services Fund during the month
minus the amount paid out of the General Revenue Fund in State
warrants during that same month as refunds to taxpayers for
overpayment of liability under the tax imposed by subsections
(a) and (b) of Section 201 of this Act.
    Notwithstanding any provision of law to the contrary,
beginning on July 6, 2017 (the effective date of Public Act
100-23) this amendatory Act of the 100th General Assembly,
those amounts required under this subsection (b) to be
transferred by the Treasurer into the Local Government
Distributive Fund from the General Revenue Fund shall be
directly deposited into the Local Government Distributive Fund
as the revenue is realized from the tax imposed by subsections
(a) and (b) of Section 201 of this Act.
    For State fiscal year 2018 only, notwithstanding any
provision of law to the contrary, the total amount of revenue
and deposits under this Section attributable to revenues
realized during State fiscal year 2018 shall be reduced by 10%.
    (c) Deposits Into Income Tax Refund Fund.
        (1) Beginning on January 1, 1989 and thereafter, the
    Department shall deposit a percentage of the amounts
    collected pursuant to subsections (a) and (b)(1), (2), and
    (3), of Section 201 of this Act into a fund in the State
    treasury known as the Income Tax Refund Fund. The
    Department shall deposit 6% of such amounts during the
    period beginning January 1, 1989 and ending on June 30,
    1989. Beginning with State fiscal year 1990 and for each
    fiscal year thereafter, the percentage deposited into the
    Income Tax Refund Fund during a fiscal year shall be the
    Annual Percentage. For fiscal years 1999 through 2001, the
    Annual Percentage shall be 7.1%. For fiscal year 2003, the
    Annual Percentage shall be 8%. For fiscal year 2004, the
    Annual Percentage shall be 11.7%. Upon the effective date
    of Public Act 93-839 (July 30, 2004) this amendatory Act of
    the 93rd General Assembly, the Annual Percentage shall be
    10% for fiscal year 2005. For fiscal year 2006, the Annual
    Percentage shall be 9.75%. For fiscal year 2007, the Annual
    Percentage shall be 9.75%. For fiscal year 2008, the Annual
    Percentage shall be 7.75%. For fiscal year 2009, the Annual
    Percentage shall be 9.75%. For fiscal year 2010, the Annual
    Percentage shall be 9.75%. For fiscal year 2011, the Annual
    Percentage shall be 8.75%. For fiscal year 2012, the Annual
    Percentage shall be 8.75%. For fiscal year 2013, the Annual
    Percentage shall be 9.75%. For fiscal year 2014, the Annual
    Percentage shall be 9.5%. For fiscal year 2015, the Annual
    Percentage shall be 10%. For fiscal year 2018, the Annual
    Percentage shall be 9.8%. For all other fiscal years, the
    Annual Percentage shall be calculated as a fraction, the
    numerator of which shall be the amount of refunds approved
    for payment by the Department during the preceding fiscal
    year as a result of overpayment of tax liability under
    subsections (a) and (b)(1), (2), and (3) of Section 201 of
    this Act plus the amount of such refunds remaining approved
    but unpaid at the end of the preceding fiscal year, minus
    the amounts transferred into the Income Tax Refund Fund
    from the Tobacco Settlement Recovery Fund, and the
    denominator of which shall be the amounts which will be
    collected pursuant to subsections (a) and (b)(1), (2), and
    (3) of Section 201 of this Act during the preceding fiscal
    year; except that in State fiscal year 2002, the Annual
    Percentage shall in no event exceed 7.6%. The Director of
    Revenue shall certify the Annual Percentage to the
    Comptroller on the last business day of the fiscal year
    immediately preceding the fiscal year for which it is to be
    effective.
        (2) Beginning on January 1, 1989 and thereafter, the
    Department shall deposit a percentage of the amounts
    collected pursuant to subsections (a) and (b)(6), (7), and
    (8), (c) and (d) of Section 201 of this Act into a fund in
    the State treasury known as the Income Tax Refund Fund. The
    Department shall deposit 18% of such amounts during the
    period beginning January 1, 1989 and ending on June 30,
    1989. Beginning with State fiscal year 1990 and for each
    fiscal year thereafter, the percentage deposited into the
    Income Tax Refund Fund during a fiscal year shall be the
    Annual Percentage. For fiscal years 1999, 2000, and 2001,
    the Annual Percentage shall be 19%. For fiscal year 2003,
    the Annual Percentage shall be 27%. For fiscal year 2004,
    the Annual Percentage shall be 32%. Upon the effective date
    of Public Act 93-839 (July 30, 2004) this amendatory Act of
    the 93rd General Assembly, the Annual Percentage shall be
    24% for fiscal year 2005. For fiscal year 2006, the Annual
    Percentage shall be 20%. For fiscal year 2007, the Annual
    Percentage shall be 17.5%. For fiscal year 2008, the Annual
    Percentage shall be 15.5%. For fiscal year 2009, the Annual
    Percentage shall be 17.5%. For fiscal year 2010, the Annual
    Percentage shall be 17.5%. For fiscal year 2011, the Annual
    Percentage shall be 17.5%. For fiscal year 2012, the Annual
    Percentage shall be 17.5%. For fiscal year 2013, the Annual
    Percentage shall be 14%. For fiscal year 2014, the Annual
    Percentage shall be 13.4%. For fiscal year 2015, the Annual
    Percentage shall be 14%. For fiscal year 2018, the Annual
    Percentage shall be 17.5%. For all other fiscal years, the
    Annual Percentage shall be calculated as a fraction, the
    numerator of which shall be the amount of refunds approved
    for payment by the Department during the preceding fiscal
    year as a result of overpayment of tax liability under
    subsections (a) and (b)(6), (7), and (8), (c) and (d) of
    Section 201 of this Act plus the amount of such refunds
    remaining approved but unpaid at the end of the preceding
    fiscal year, and the denominator of which shall be the
    amounts which will be collected pursuant to subsections (a)
    and (b)(6), (7), and (8), (c) and (d) of Section 201 of
    this Act during the preceding fiscal year; except that in
    State fiscal year 2002, the Annual Percentage shall in no
    event exceed 23%. The Director of Revenue shall certify the
    Annual Percentage to the Comptroller on the last business
    day of the fiscal year immediately preceding the fiscal
    year for which it is to be effective.
        (3) The Comptroller shall order transferred and the
    Treasurer shall transfer from the Tobacco Settlement
    Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
    in January, 2001, (ii) $35,000,000 in January, 2002, and
    (iii) $35,000,000 in January, 2003.
    (d) Expenditures from Income Tax Refund Fund.
        (1) Beginning January 1, 1989, money in the Income Tax
    Refund Fund shall be expended exclusively for the purpose
    of paying refunds resulting from overpayment of tax
    liability under Section 201 of this Act, for paying rebates
    under Section 208.1 in the event that the amounts in the
    Homeowners' Tax Relief Fund are insufficient for that
    purpose, and for making transfers pursuant to this
    subsection (d).
        (2) The Director shall order payment of refunds
    resulting from overpayment of tax liability under Section
    201 of this Act from the Income Tax Refund Fund only to the
    extent that amounts collected pursuant to Section 201 of
    this Act and transfers pursuant to this subsection (d) and
    item (3) of subsection (c) have been deposited and retained
    in the Fund.
        (3) As soon as possible after the end of each fiscal
    year, the Director shall order transferred and the State
    Treasurer and State Comptroller shall transfer from the
    Income Tax Refund Fund to the Personal Property Tax
    Replacement Fund an amount, certified by the Director to
    the Comptroller, equal to the excess of the amount
    collected pursuant to subsections (c) and (d) of Section
    201 of this Act deposited into the Income Tax Refund Fund
    during the fiscal year over the amount of refunds resulting
    from overpayment of tax liability under subsections (c) and
    (d) of Section 201 of this Act paid from the Income Tax
    Refund Fund during the fiscal year.
        (4) As soon as possible after the end of each fiscal
    year, the Director shall order transferred and the State
    Treasurer and State Comptroller shall transfer from the
    Personal Property Tax Replacement Fund to the Income Tax
    Refund Fund an amount, certified by the Director to the
    Comptroller, equal to the excess of the amount of refunds
    resulting from overpayment of tax liability under
    subsections (c) and (d) of Section 201 of this Act paid
    from the Income Tax Refund Fund during the fiscal year over
    the amount collected pursuant to subsections (c) and (d) of
    Section 201 of this Act deposited into the Income Tax
    Refund Fund during the fiscal year.
        (4.5) As soon as possible after the end of fiscal year
    1999 and of each fiscal year thereafter, the Director shall
    order transferred and the State Treasurer and State
    Comptroller shall transfer from the Income Tax Refund Fund
    to the General Revenue Fund any surplus remaining in the
    Income Tax Refund Fund as of the end of such fiscal year;
    excluding for fiscal years 2000, 2001, and 2002 amounts
    attributable to transfers under item (3) of subsection (c)
    less refunds resulting from the earned income tax credit.
        (5) This Act shall constitute an irrevocable and
    continuing appropriation from the Income Tax Refund Fund
    for the purpose of paying refunds upon the order of the
    Director in accordance with the provisions of this Section.
    (e) Deposits into the Education Assistance Fund and the
Income Tax Surcharge Local Government Distributive Fund. On
July 1, 1991, and thereafter, of the amounts collected pursuant
to subsections (a) and (b) of Section 201 of this Act, minus
deposits into the Income Tax Refund Fund, the Department shall
deposit 7.3% into the Education Assistance Fund in the State
Treasury. Beginning July 1, 1991, and continuing through
January 31, 1993, of the amounts collected pursuant to
subsections (a) and (b) of Section 201 of the Illinois Income
Tax Act, minus deposits into the Income Tax Refund Fund, the
Department shall deposit 3.0% into the Income Tax Surcharge
Local Government Distributive Fund in the State Treasury.
Beginning February 1, 1993 and continuing through June 30,
1993, of the amounts collected pursuant to subsections (a) and
(b) of Section 201 of the Illinois Income Tax Act, minus
deposits into the Income Tax Refund Fund, the Department shall
deposit 4.4% into the Income Tax Surcharge Local Government
Distributive Fund in the State Treasury. Beginning July 1,
1993, and continuing through June 30, 1994, of the amounts
collected under subsections (a) and (b) of Section 201 of this
Act, minus deposits into the Income Tax Refund Fund, the
Department shall deposit 1.475% into the Income Tax Surcharge
Local Government Distributive Fund in the State Treasury.
    (f) Deposits into the Fund for the Advancement of
Education. Beginning February 1, 2015, the Department shall
deposit the following portions of the revenue realized from the
tax imposed upon individuals, trusts, and estates by
subsections (a) and (b) of Section 201 of this Act during the
preceding month, minus deposits into the Income Tax Refund
Fund, into the Fund for the Advancement of Education:
        (1) beginning February 1, 2015, and prior to February
    1, 2025, 1/30; and
        (2) beginning February 1, 2025, 1/26.
    If the rate of tax imposed by subsection (a) and (b) of
Section 201 is reduced pursuant to Section 201.5 of this Act,
the Department shall not make the deposits required by this
subsection (f) on or after the effective date of the reduction.
    (g) Deposits into the Commitment to Human Services Fund.
Beginning February 1, 2015, the Department shall deposit the
following portions of the revenue realized from the tax imposed
upon individuals, trusts, and estates by subsections (a) and
(b) of Section 201 of this Act during the preceding month,
minus deposits into the Income Tax Refund Fund, into the
Commitment to Human Services Fund:
        (1) beginning February 1, 2015, and prior to February
    1, 2025, 1/30; and
        (2) beginning February 1, 2025, 1/26.
    If the rate of tax imposed by subsection (a) and (b) of
Section 201 is reduced pursuant to Section 201.5 of this Act,
the Department shall not make the deposits required by this
subsection (g) on or after the effective date of the reduction.
    (h) Deposits into the Tax Compliance and Administration
Fund. Beginning on the first day of the first calendar month to
occur on or after August 26, 2014 (the effective date of Public
Act 98-1098), each month the Department shall pay into the Tax
Compliance and Administration Fund, to be used, subject to
appropriation, to fund additional auditors and compliance
personnel at the Department, an amount equal to 1/12 of 5% of
the cash receipts collected during the preceding fiscal year by
the Audit Bureau of the Department from the tax imposed by
subsections (a), (b), (c), and (d) of Section 201 of this Act,
net of deposits into the Income Tax Refund Fund made from those
cash receipts.
(Source: P.A. 99-78, eff. 7-20-15; 100-22, eff. 7-6-17; 100-23,
eff. 7-6-17; revised 8-3-17.)
 
    Section 30. The Use Tax Act is amended by changing Sections
3-5, 3-5.5, 9, and 10 as follows:
 
    (35 ILCS 105/3-5)
    Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
    (1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
    (2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
    (3) Personal property purchased by a not-for-profit arts or
cultural organization that establishes, by proof required by
the Department by rule, that it has received an exemption under
Section 501(c)(3) of the Internal Revenue Code and that is
organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35) this amendatory Act of the
92nd General Assembly, however, an entity otherwise eligible
for this exemption shall not make tax-free purchases unless it
has an active identification number issued by the Department.
    (4) Personal property purchased by a governmental body, by
a corporation, society, association, foundation, or
institution organized and operated exclusively for charitable,
religious, or educational purposes, or by a not-for-profit
corporation, society, association, foundation, institution, or
organization that has no compensated officers or employees and
that is organized and operated primarily for the recreation of
persons 55 years of age or older. A limited liability company
may qualify for the exemption under this paragraph only if the
limited liability company is organized and operated
exclusively for educational purposes. On and after July 1,
1987, however, no entity otherwise eligible for this exemption
shall make tax-free purchases unless it has an active exemption
identification number issued by the Department.
    (5) Until July 1, 2003, a passenger car that is a
replacement vehicle to the extent that the purchase price of
the car is subject to the Replacement Vehicle Tax.
    (6) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new and
used, and including that manufactured on special order,
certified by the purchaser to be used primarily for graphic
arts production, and including machinery and equipment
purchased for lease. Equipment includes chemicals or chemicals
acting as catalysts but only if the chemicals or chemicals
acting as catalysts effect a direct and immediate change upon a
graphic arts product. Beginning on July 1, 2017, graphic arts
machinery and equipment is included in the manufacturing and
assembling machinery and equipment exemption under paragraph
(18).
    (7) Farm chemicals.
    (8) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
    (9) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
    (10) A motor vehicle that is used for automobile renting,
as defined in the Automobile Renting Occupation and Use Tax
Act.
    (11) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required to
be registered under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses or
hoop houses used for propagating, growing, or overwintering
plants shall be considered farm machinery and equipment under
this item (11). Agricultural chemical tender tanks and dry
boxes shall include units sold separately from a motor vehicle
required to be licensed and units sold mounted on a motor
vehicle required to be licensed if the selling price of the
tender is separately stated.
    Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
    Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (11) is exempt from the
provisions of Section 3-90.
    (12) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the conduct
of its business as an air common carrier, for a flight destined
for or returning from a location or locations outside the
United States without regard to previous or subsequent domestic
stopovers.
    Beginning July 1, 2013, fuel and petroleum products sold to
or used by an air carrier, certified by the carrier to be used
for consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports at
least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
    (13) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages purchased at retail from a retailer, to the
extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the
employees who participate directly in preparing, serving,
hosting or cleaning up the food or beverage function with
respect to which the service charge is imposed.
    (14) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of rigs,
rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
tubular goods, including casing and drill strings, (iii) pumps
and pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
    (15) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including that
manufactured on special order, certified by the purchaser to be
used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
    (16) Coal and aggregate exploration, mining, off-highway
hauling, processing, maintenance, and reclamation equipment,
including replacement parts and equipment, and including
equipment purchased for lease, but excluding motor vehicles
required to be registered under the Illinois Vehicle Code. The
changes made to this Section by Public Act 97-767 apply on and
after July 1, 2003, but no claim for credit or refund is
allowed on or after August 16, 2013 (the effective date of
Public Act 98-456) for such taxes paid during the period
beginning July 1, 2003 and ending on August 16, 2013 (the
effective date of Public Act 98-456).
    (17) Until July 1, 2003, distillation machinery and
equipment, sold as a unit or kit, assembled or installed by the
retailer, certified by the user to be used only for the
production of ethyl alcohol that will be used for consumption
as motor fuel or as a component of motor fuel for the personal
use of the user, and not subject to sale or resale.
    (18) Manufacturing and assembling machinery and equipment
used primarily in the process of manufacturing or assembling
tangible personal property for wholesale or retail sale or
lease, whether that sale or lease is made directly by the
manufacturer or by some other person, whether the materials
used in the process are owned by the manufacturer or some other
person, or whether that sale or lease is made apart from or as
an incident to the seller's engaging in the service occupation
of producing machines, tools, dies, jigs, patterns, gauges, or
other similar items of no commercial value on special order for
a particular purchaser. The exemption provided by this
paragraph (18) does not include machinery and equipment used in
(i) the generation of electricity for wholesale or retail sale;
(ii) the generation or treatment of natural or artificial gas
for wholesale or retail sale that is delivered to customers
through pipes, pipelines, or mains; or (iii) the treatment of
water for wholesale or retail sale that is delivered to
customers through pipes, pipelines, or mains. The provisions of
Public Act 98-583 are declaratory of existing law as to the
meaning and scope of this exemption. Beginning on July 1, 2017,
the exemption provided by this paragraph (18) includes, but is
not limited to, graphic arts machinery and equipment, as
defined in paragraph (6) of this Section.
    (19) Personal property delivered to a purchaser or
purchaser's donee inside Illinois when the purchase order for
that personal property was received by a florist located
outside Illinois who has a florist located inside Illinois
deliver the personal property.
    (20) Semen used for artificial insemination of livestock
for direct agricultural production.
    (21) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (21) is exempt from the provisions
of Section 3-90, and the exemption provided for under this item
(21) applies for all periods beginning May 30, 1995, but no
claim for credit or refund is allowed on or after January 1,
2008 for such taxes paid during the period beginning May 30,
2000 and ending on January 1, 2008.
    (22) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other non-exempt manner, the lessor shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the
case may be, based on the fair market value of the property at
the time the non-qualifying use occurs. No lessor shall collect
or attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax
has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall have
a legal right to claim a refund of that amount from the lessor.
If, however, that amount is not refunded to the lessee for any
reason, the lessor is liable to pay that amount to the
Department.
    (23) Personal property purchased by a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time the lessor would otherwise be subject to the
tax imposed by this Act, to a governmental body that has been
issued an active sales tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation
Tax Act. If the property is leased in a manner that does not
qualify for this exemption or used in any other non-exempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Service Use Tax Act, as the case may be, based
on the fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such
amount from the lessee, the lessee shall have a legal right to
claim a refund of that amount from the lessor. If, however,
that amount is not refunded to the lessee for any reason, the
lessor is liable to pay that amount to the Department.
    (24) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated for
disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
    (25) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in the
performance of infrastructure repairs in this State, including
but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer
line extensions, water distribution and purification
facilities, storm water drainage and retention facilities, and
sewage treatment facilities, resulting from a State or
federally declared disaster in Illinois or bordering Illinois
when such repairs are initiated on facilities located in the
declared disaster area within 6 months after the disaster.
    (26) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-90.
    (27) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the Department
to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation,
limited liability company, society, association, foundation,
or institution organized and operated exclusively for
educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful
branches of learning by methods common to public schools and
that compare favorably in their scope and intensity with the
course of study presented in tax-supported schools, and
vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less
than 6 weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical, mechanical,
industrial, business, or commercial occupation.
    (28) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-90.
    (29) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and other
items, and replacement parts for these machines. Beginning
January 1, 2002 and through June 30, 2003, machines and parts
for machines used in commercial, coin-operated amusement and
vending business if a use or occupation tax is paid on the
gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines. This paragraph
is exempt from the provisions of Section 3-90.
    (30) Beginning January 1, 2001 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
    (31) Beginning on August 2, 2001 (the effective date of
Public Act 92-227) this amendatory Act of the 92nd General
Assembly, computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other nonexempt manner, the lessor shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the
case may be, based on the fair market value of the property at
the time the nonqualifying use occurs. No lessor shall collect
or attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax
has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall have
a legal right to claim a refund of that amount from the lessor.
If, however, that amount is not refunded to the lessee for any
reason, the lessor is liable to pay that amount to the
Department. This paragraph is exempt from the provisions of
Section 3-90.
    (32) Beginning on August 2, 2001 (the effective date of
Public Act 92-227) this amendatory Act of the 92nd General
Assembly, personal property purchased by a lessor who leases
the property, under a lease of one year or longer executed or
in effect at the time the lessor would otherwise be subject to
the tax imposed by this Act, to a governmental body that has
been issued an active sales tax exemption identification number
by the Department under Section 1g of the Retailers' Occupation
Tax Act. If the property is leased in a manner that does not
qualify for this exemption or used in any other nonexempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Service Use Tax Act, as the case may be, based
on the fair market value of the property at the time the
nonqualifying use occurs. No lessor shall collect or attempt to
collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such
amount from the lessee, the lessee shall have a legal right to
claim a refund of that amount from the lessor. If, however,
that amount is not refunded to the lessee for any reason, the
lessor is liable to pay that amount to the Department. This
paragraph is exempt from the provisions of Section 3-90.
    (33) On and after July 1, 2003 and through June 30, 2004,
the use in this State of motor vehicles of the second division
with a gross vehicle weight in excess of 8,000 pounds and that
are subject to the commercial distribution fee imposed under
Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
1, 2004 and through June 30, 2005, the use in this State of
motor vehicles of the second division: (i) with a gross vehicle
weight rating in excess of 8,000 pounds; (ii) that are subject
to the commercial distribution fee imposed under Section
3-815.1 of the Illinois Vehicle Code; and (iii) that are
primarily used for commercial purposes. Through June 30, 2005,
this exemption applies to repair and replacement parts added
after the initial purchase of such a motor vehicle if that
motor vehicle is used in a manner that would qualify for the
rolling stock exemption otherwise provided for in this Act. For
purposes of this paragraph, the term "used for commercial
purposes" means the transportation of persons or property in
furtherance of any commercial or industrial enterprise,
whether for-hire or not.
    (34) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued under
Title IV of the Environmental Protection Act. This paragraph is
exempt from the provisions of Section 3-90.
    (35) Beginning January 1, 2010, materials, parts,
equipment, components, and furnishings incorporated into or
upon an aircraft as part of the modification, refurbishment,
completion, replacement, repair, or maintenance of the
aircraft. This exemption includes consumable supplies used in
the modification, refurbishment, completion, replacement,
repair, and maintenance of aircraft, but excludes any
materials, parts, equipment, components, and consumable
supplies used in the modification, replacement, repair, and
maintenance of aircraft engines or power plants, whether such
engines or power plants are installed or uninstalled upon any
such aircraft. "Consumable supplies" include, but are not
limited to, adhesive, tape, sandpaper, general purpose
lubricants, cleaning solution, latex gloves, and protective
films. This exemption applies only to the use of qualifying
tangible personal property by persons who modify, refurbish,
complete, repair, replace, or maintain aircraft and who (i)
hold an Air Agency Certificate and are empowered to operate an
approved repair station by the Federal Aviation
Administration, (ii) have a Class IV Rating, and (iii) conduct
operations in accordance with Part 145 of the Federal Aviation
Regulations. The exemption does not include aircraft operated
by a commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part 129
of the Federal Aviation Regulations. The changes made to this
paragraph (35) by Public Act 98-534 are declarative of existing
law.
    (36) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt instruments
issued by the public-facilities corporation in connection with
the development of the municipal convention hall. This
exemption includes existing public-facilities corporations as
provided in Section 11-65-25 of the Illinois Municipal Code.
This paragraph is exempt from the provisions of Section 3-90.
    (37) Beginning January 1, 2017, menstrual pads, tampons,
and menstrual cups.
    (38) Merchandise that is subject to the Rental Purchase
Agreement Occupation and Use Tax. The purchaser must certify
that the item is purchased to be rented subject to a rental
purchase agreement, as defined in the Rental Purchase Agreement
Act, and provide proof of registration under the Rental
Purchase Agreement Occupation and Use Tax Act. This paragraph
is exempt from the provisions of Section 3-90.
    (39) Tangible personal property purchased by a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-90.
(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
100-22, eff. 7-6-17; 100-437, eff. 1-1-18; revised 9-27-17.)
 
    (35 ILCS 105/3-5.5)
    Sec. 3-5.5. Food and drugs sold by not-for-profit
organizations; exemption. The Department shall not collect the
1% tax imposed under this Act on food for human consumption
that is to be consumed off the premises where it is sold (other
than alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and
insulin, urine testing materials, syringes, and needles used by
diabetics, for human use from any not-for-profit organization,
that sells food in a food distribution program at a price below
the retail cost of the food to purchasers who, as a condition
of participation in the program, are required to perform
community service, located in a county or municipality that
notifies the Department, in writing, that the county or
municipality does not want the tax to be collected from any of
such organizations located in the county or municipality.
(Source: P.A. 88-374.)
 
    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
    (Text of Section before amendment by P.A. 100-363)
    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
and trailers that are required to be registered with an agency
of this State, each retailer required or authorized to collect
the tax imposed by this Act shall pay to the Department the
amount of such tax (except as otherwise provided) at the time
when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or $5
per calendar year, whichever is greater, which is allowed to
reimburse the retailer for expenses incurred in collecting the
tax, keeping records, preparing and filing returns, remitting
the tax and supplying data to the Department on request. In the
case of retailers who report and pay the tax on a transaction
by transaction basis, as provided in this Section, such
discount shall be taken with each such tax remittance instead
of when such retailer files his periodic return. The discount
allowed under this Section is allowed only for returns that are
filed in the manner required by this Act. The Department may
disallow the discount for retailers whose certificate of
registration is revoked at the time the return is filed, but
only if the Department's decision to revoke the certificate of
registration has become final. A retailer need not remit that
part of any tax collected by him to the extent that he is
required to remit and does remit the tax imposed by the
Retailers' Occupation Tax Act, with respect to the sale of the
same property.
    Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the retailer, in collecting the tax (except as to motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State), may collect for
each tax return period, only the tax applicable to that part of
the selling price actually received during such tax return
period.
    Except as provided in this Section, on or before the
twentieth day of each calendar month, such retailer shall file
a return for the preceding calendar month. Such return shall be
filed on forms prescribed by the Department and shall furnish
such information as the Department may reasonably require. On
and after January 1, 2018, except for returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. Retailers who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
    The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from
    which he engages in the business of selling tangible
    personal property at retail in this State;
        3. The total amount of taxable receipts received by him
    during the preceding calendar month from sales of tangible
    personal property by him during such preceding calendar
    month, including receipts from charge and time sales, but
    less all deductions allowed by law;
        4. The amount of credit provided in Section 2d of this
    Act;
        5. The amount of tax due;
        5-5. The signature of the taxpayer; and
        6. Such other reasonable information as the Department
    may require.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
    Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
    All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
    Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, the Service
Use Tax Act was $10,000 or more during the preceding 4 complete
calendar quarters, he shall file a return with the Department
each month by the 20th day of the month next following the
month during which such tax liability is incurred and shall
make payments to the Department on or before the 7th, 15th,
22nd and last day of the month during which such liability is
incurred. On and after October 1, 2000, if the taxpayer's
average monthly tax liability to the Department under this Act,
the Retailers' Occupation Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act was $20,000 or more during the
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the 20th day of the month
next following the month during which such tax liability is
incurred and shall make payment to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such
liability is incurred. If the month during which such tax
liability is incurred began prior to January 1, 1985, each
payment shall be in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the
Department not to exceed 1/4 of the average monthly liability
of the taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability and
the month of lowest liability in such 4 quarter period). If the
month during which such tax liability is incurred begins on or
after January 1, 1985, and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 27.5% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1987, and prior to January 1, 1988, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or
begins on or after January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during which
such tax liability is incurred begins on or after January 1,
1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. Before October 1, 2000, once applicable, the
requirement of the making of quarter monthly payments to the
Department shall continue until such taxpayer's average
monthly liability to the Department during the preceding 4
complete calendar quarters (excluding the month of highest
liability and the month of lowest liability) is less than
$9,000, or until such taxpayer's average monthly liability to
the Department as computed for each calendar quarter of the 4
preceding complete calendar quarter period is less than
$10,000. However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $10,000 threshold stated above, then such
taxpayer may petition the Department for change in such
taxpayer's reporting status. On and after October 1, 2000, once
applicable, the requirement of the making of quarter monthly
payments to the Department shall continue until such taxpayer's
average monthly liability to the Department during the
preceding 4 complete calendar quarters (excluding the month of
highest liability and the month of lowest liability) is less
than $19,000 or until such taxpayer's average monthly liability
to the Department as computed for each calendar quarter of the
4 preceding complete calendar quarter period is less than
$20,000. However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $20,000 threshold stated above, then such
taxpayer may petition the Department for a change in such
taxpayer's reporting status. The Department shall change such
taxpayer's reporting status unless it finds that such change is
seasonal in nature and not likely to be long term. If any such
quarter monthly payment is not paid at the time or in the
amount required by this Section, then the taxpayer shall be
liable for penalties and interest on the difference between the
minimum amount due and the amount of such quarter monthly
payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the
Department in excess of the minimum payments previously due as
provided in this Section. The Department shall make reasonable
rules and regulations to govern the quarter monthly payment
amount and quarter monthly payment dates for taxpayers who file
on other than a calendar monthly basis.
    If any such payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly return,
the Department shall issue to the taxpayer a credit memorandum
no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department
in payment of tax liability subsequently to be remitted by the
taxpayer to the Department or be assigned by the taxpayer to a
similar taxpayer under this Act, the Retailers' Occupation Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department, except that if such excess
payment is shown on an original monthly return and is made
after December 31, 1986, no credit memorandum shall be issued,
unless requested by the taxpayer. If no such request is made,
the taxpayer may credit such excess payment against tax
liability subsequently to be remitted by the taxpayer to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations prescribed by
the Department. If the Department subsequently determines that
all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
be reduced by 2.1% or 1.75% of the difference between the
credit taken and that actually due, and the taxpayer shall be
liable for penalties and interest on such difference.
    If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May and June of a given year being due by July 20 of such
year; with the return for July, August and September of a given
year being due by October 20 of such year, and with the return
for October, November and December of a given year being due by
January 20 of the following year.
    If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability to the Department does not exceed $50, the Department
may authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 20 of the
following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
    Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
    In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle or
trailer retailer for the purpose of resale or (ii) a retailer
of aircraft, watercraft, motor vehicles, or trailers transfers
more than one aircraft, watercraft, motor vehicle, or trailer
to a purchaser for use as a qualifying rolling stock as
provided in Section 3-55 of this Act, then that seller may
report the transfer of all the aircraft, watercraft, motor
vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting
return form. For purposes of this Section, "watercraft" means a
Class 2, Class 3, or Class 4 watercraft as defined in Section
3-2 of the Boat Registration and Safety Act, a personal
watercraft, or any boat equipped with an inboard motor.
    In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting the
transfer of all the aircraft, watercraft, motor vehicles, or
trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
    The transaction reporting return in the case of motor
vehicles or trailers that are required to be registered with an
agency of this State, shall be the same document as the Uniform
Invoice referred to in Section 5-402 of the Illinois Vehicle
Code and must show the name and address of the seller; the name
and address of the purchaser; the amount of the selling price
including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 2 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the retailer with respect to such transaction; the
amount of tax collected from the purchaser by the retailer on
such transaction (or satisfactory evidence that such tax is not
due in that particular instance, if that is claimed to be the
fact); the place and date of the sale; a sufficient
identification of the property sold; such other information as
is required in Section 5-402 of the Illinois Vehicle Code, and
such other information as the Department may reasonably
require.
    The transaction reporting return in the case of watercraft
and aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling price;
the amount of tax due from the retailer with respect to such
transaction; the amount of tax collected from the purchaser by
the retailer on such transaction (or satisfactory evidence that
such tax is not due in that particular instance, if that is
claimed to be the fact); the place and date of the sale, a
sufficient identification of the property sold, and such other
information as the Department may reasonably require.
    Such transaction reporting return shall be filed not later
than 20 days after the date of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the tax
that is imposed by this Act may be transmitted to the
Department by way of the State agency with which, or State
officer with whom, the tangible personal property must be
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
    With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a tax receipt
(or a certificate of exemption if the Department is satisfied
that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with
whom, he must title or register the tangible personal property
that is involved (if titling or registration is required) in
support of such purchaser's application for an Illinois
certificate or other evidence of title or registration to such
tangible personal property.
    No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
    If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment of
tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer, and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
    Where a retailer collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the retailer refunds the selling price thereof to
the purchaser, such retailer shall also refund, to the
purchaser, the tax so collected from the purchaser. When filing
his return for the period in which he refunds such tax to the
purchaser, the retailer may deduct the amount of the tax so
refunded by him to the purchaser from any other use tax which
such retailer may be required to pay or remit to the
Department, as shown by such return, if the amount of the tax
to be deducted was previously remitted to the Department by
such retailer. If the retailer has not previously remitted the
amount of such tax to the Department, he is entitled to no
deduction under this Act upon refunding such tax to the
purchaser.
    Any retailer filing a return under this Section shall also
include (for the purpose of paying tax thereon) the total tax
covered by such return upon the selling price of tangible
personal property purchased by him at retail from a retailer,
but as to which the tax imposed by this Act was not collected
from the retailer filing such return, and such retailer shall
remit the amount of such tax to the Department when filing such
return.
    If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable retailers, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
    Where the retailer has more than one business registered
with the Department under separate registration under this Act,
such retailer may not file each return that is due as a single
return covering all such registered businesses, but shall file
separate returns for each such registered business.
    Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury which is hereby created, the net
revenue realized for the preceding month from the 1% tax
imposed under this Act on sales of food for human consumption
which is to be consumed off the premises where it is sold
(other than alcoholic beverages, soft drinks and food which has
been prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, products
classified as Class III medical devices by the United States
Food and Drug Administration that are used for cancer treatment
pursuant to a prescription, as well as any accessories and
components related to those devices, and insulin, urine testing
materials, syringes and needles used by diabetics.
    Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal property
which is purchased outside Illinois at retail from a retailer
and which is titled or registered by an agency of this State's
government.
    Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury, 20% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property, other than tangible
personal property which is purchased outside Illinois at retail
from a retailer and which is titled or registered by an agency
of this State's government.
    Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. Beginning
September 1, 2010, each month the Department shall pay into the
State and Local Sales Tax Reform Fund 100% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of sales tax holiday items.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property which is
purchased outside Illinois at retail from a retailer and which
is titled or registered by an agency of this State's
government.
    Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
    Beginning July 1, 2011, each month the Department shall pay
into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of sorbents used in Illinois in the process
of sorbent injection as used to comply with the Environmental
Protection Act or the federal Clean Air Act, but the total
payment into the Clean Air Act Permit Fund under this Act and
the Retailers' Occupation Tax Act shall not exceed $2,000,000
in any fiscal year.
    Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Service Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Service Use Tax Act, the Service Occupation Tax Act, and
the Retailers' Occupation Tax Act shall not exceed $18,000,000
in any State fiscal year. As used in this paragraph, the
"average monthly deficit" shall be equal to the difference
between the average monthly claims for payment by the fund and
the average monthly revenues deposited into the fund, excluding
payments made pursuant to this paragraph.
    Beginning July 1, 2015, of the remainder of the moneys
received by the Department under this Act, the Service Use Tax
Act, the Service Occupation Tax Act, and the Retailers'
Occupation Tax Act, each month the Department shall deposit
$500,000 into the State Crime Laboratory Fund.
    Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
    Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098), each month, from the
collections made under Section 9 of the Use Tax Act, Section 9
of the Service Use Tax Act, Section 9 of the Service Occupation
Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year by
the Audit Bureau of the Department under the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
    Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
    As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
    For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to such
sales, if the retailers who are affected do not make written
objection to the Department to this arrangement.
(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
99-933, eff. 1-27-17; 100-303, eff. 8-24-17.)
 
    (Text of Section after amendment by P.A. 100-363)
    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
and trailers that are required to be registered with an agency
of this State, each retailer required or authorized to collect
the tax imposed by this Act shall pay to the Department the
amount of such tax (except as otherwise provided) at the time
when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or $5
per calendar year, whichever is greater, which is allowed to
reimburse the retailer for expenses incurred in collecting the
tax, keeping records, preparing and filing returns, remitting
the tax and supplying data to the Department on request. In the
case of retailers who report and pay the tax on a transaction
by transaction basis, as provided in this Section, such
discount shall be taken with each such tax remittance instead
of when such retailer files his periodic return. The discount
allowed under this Section is allowed only for returns that are
filed in the manner required by this Act. The Department may
disallow the discount for retailers whose certificate of
registration is revoked at the time the return is filed, but
only if the Department's decision to revoke the certificate of
registration has become final. A retailer need not remit that
part of any tax collected by him to the extent that he is
required to remit and does remit the tax imposed by the
Retailers' Occupation Tax Act, with respect to the sale of the
same property.
    Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the retailer, in collecting the tax (except as to motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State), may collect for
each tax return period, only the tax applicable to that part of
the selling price actually received during such tax return
period.
    Except as provided in this Section, on or before the
twentieth day of each calendar month, such retailer shall file
a return for the preceding calendar month. Such return shall be
filed on forms prescribed by the Department and shall furnish
such information as the Department may reasonably require. On
and after January 1, 2018, except for returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. Retailers who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
    The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from
    which he engages in the business of selling tangible
    personal property at retail in this State;
        3. The total amount of taxable receipts received by him
    during the preceding calendar month from sales of tangible
    personal property by him during such preceding calendar
    month, including receipts from charge and time sales, but
    less all deductions allowed by law;
        4. The amount of credit provided in Section 2d of this
    Act;
        5. The amount of tax due;
        5-5. The signature of the taxpayer; and
        6. Such other reasonable information as the Department
    may require.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
    Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
    All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
    Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, the Service
Use Tax Act was $10,000 or more during the preceding 4 complete
calendar quarters, he shall file a return with the Department
each month by the 20th day of the month next following the
month during which such tax liability is incurred and shall
make payments to the Department on or before the 7th, 15th,
22nd and last day of the month during which such liability is
incurred. On and after October 1, 2000, if the taxpayer's
average monthly tax liability to the Department under this Act,
the Retailers' Occupation Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act was $20,000 or more during the
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the 20th day of the month
next following the month during which such tax liability is
incurred and shall make payment to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such
liability is incurred. If the month during which such tax
liability is incurred began prior to January 1, 1985, each
payment shall be in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the
Department not to exceed 1/4 of the average monthly liability
of the taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability and
the month of lowest liability in such 4 quarter period). If the
month during which such tax liability is incurred begins on or
after January 1, 1985, and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 27.5% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1987, and prior to January 1, 1988, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or
begins on or after January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during which
such tax liability is incurred begins on or after January 1,
1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. Before October 1, 2000, once applicable, the
requirement of the making of quarter monthly payments to the
Department shall continue until such taxpayer's average
monthly liability to the Department during the preceding 4
complete calendar quarters (excluding the month of highest
liability and the month of lowest liability) is less than
$9,000, or until such taxpayer's average monthly liability to
the Department as computed for each calendar quarter of the 4
preceding complete calendar quarter period is less than
$10,000. However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $10,000 threshold stated above, then such
taxpayer may petition the Department for change in such
taxpayer's reporting status. On and after October 1, 2000, once
applicable, the requirement of the making of quarter monthly
payments to the Department shall continue until such taxpayer's
average monthly liability to the Department during the
preceding 4 complete calendar quarters (excluding the month of
highest liability and the month of lowest liability) is less
than $19,000 or until such taxpayer's average monthly liability
to the Department as computed for each calendar quarter of the
4 preceding complete calendar quarter period is less than
$20,000. However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $20,000 threshold stated above, then such
taxpayer may petition the Department for a change in such
taxpayer's reporting status. The Department shall change such
taxpayer's reporting status unless it finds that such change is
seasonal in nature and not likely to be long term. If any such
quarter monthly payment is not paid at the time or in the
amount required by this Section, then the taxpayer shall be
liable for penalties and interest on the difference between the
minimum amount due and the amount of such quarter monthly
payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the
Department in excess of the minimum payments previously due as
provided in this Section. The Department shall make reasonable
rules and regulations to govern the quarter monthly payment
amount and quarter monthly payment dates for taxpayers who file
on other than a calendar monthly basis.
    If any such payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly return,
the Department shall issue to the taxpayer a credit memorandum
no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department
in payment of tax liability subsequently to be remitted by the
taxpayer to the Department or be assigned by the taxpayer to a
similar taxpayer under this Act, the Retailers' Occupation Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department, except that if such excess
payment is shown on an original monthly return and is made
after December 31, 1986, no credit memorandum shall be issued,
unless requested by the taxpayer. If no such request is made,
the taxpayer may credit such excess payment against tax
liability subsequently to be remitted by the taxpayer to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations prescribed by
the Department. If the Department subsequently determines that
all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
be reduced by 2.1% or 1.75% of the difference between the
credit taken and that actually due, and the taxpayer shall be
liable for penalties and interest on such difference.
    If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May and June of a given year being due by July 20 of such
year; with the return for July, August and September of a given
year being due by October 20 of such year, and with the return
for October, November and December of a given year being due by
January 20 of the following year.
    If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability to the Department does not exceed $50, the Department
may authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 20 of the
following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
    Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
    In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle or
trailer retailer for the purpose of resale or (ii) a retailer
of aircraft, watercraft, motor vehicles, or trailers transfers
more than one aircraft, watercraft, motor vehicle, or trailer
to a purchaser for use as a qualifying rolling stock as
provided in Section 3-55 of this Act, then that seller may
report the transfer of all the aircraft, watercraft, motor
vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting
return form. For purposes of this Section, "watercraft" means a
Class 2, Class 3, or Class 4 watercraft as defined in Section
3-2 of the Boat Registration and Safety Act, a personal
watercraft, or any boat equipped with an inboard motor.
    In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting the
transfer of all the aircraft, watercraft, motor vehicles, or
trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
    The transaction reporting return in the case of motor
vehicles or trailers that are required to be registered with an
agency of this State, shall be the same document as the Uniform
Invoice referred to in Section 5-402 of the Illinois Vehicle
Code and must show the name and address of the seller; the name
and address of the purchaser; the amount of the selling price
including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 2 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the retailer with respect to such transaction; the
amount of tax collected from the purchaser by the retailer on
such transaction (or satisfactory evidence that such tax is not
due in that particular instance, if that is claimed to be the
fact); the place and date of the sale; a sufficient
identification of the property sold; such other information as
is required in Section 5-402 of the Illinois Vehicle Code, and
such other information as the Department may reasonably
require.
    The transaction reporting return in the case of watercraft
and aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling price;
the amount of tax due from the retailer with respect to such
transaction; the amount of tax collected from the purchaser by
the retailer on such transaction (or satisfactory evidence that
such tax is not due in that particular instance, if that is
claimed to be the fact); the place and date of the sale, a
sufficient identification of the property sold, and such other
information as the Department may reasonably require.
    Such transaction reporting return shall be filed not later
than 20 days after the date of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the tax
that is imposed by this Act may be transmitted to the
Department by way of the State agency with which, or State
officer with whom, the tangible personal property must be
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
    With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a tax receipt
(or a certificate of exemption if the Department is satisfied
that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with
whom, he must title or register the tangible personal property
that is involved (if titling or registration is required) in
support of such purchaser's application for an Illinois
certificate or other evidence of title or registration to such
tangible personal property.
    No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
    If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment of
tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer, and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
    Where a retailer collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the retailer refunds the selling price thereof to
the purchaser, such retailer shall also refund, to the
purchaser, the tax so collected from the purchaser. When filing
his return for the period in which he refunds such tax to the
purchaser, the retailer may deduct the amount of the tax so
refunded by him to the purchaser from any other use tax which
such retailer may be required to pay or remit to the
Department, as shown by such return, if the amount of the tax
to be deducted was previously remitted to the Department by
such retailer. If the retailer has not previously remitted the
amount of such tax to the Department, he is entitled to no
deduction under this Act upon refunding such tax to the
purchaser.
    Any retailer filing a return under this Section shall also
include (for the purpose of paying tax thereon) the total tax
covered by such return upon the selling price of tangible
personal property purchased by him at retail from a retailer,
but as to which the tax imposed by this Act was not collected
from the retailer filing such return, and such retailer shall
remit the amount of such tax to the Department when filing such
return.
    If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable retailers, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
    Where the retailer has more than one business registered
with the Department under separate registration under this Act,
such retailer may not file each return that is due as a single
return covering all such registered businesses, but shall file
separate returns for each such registered business.
    Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury which is hereby created, the net
revenue realized for the preceding month from the 1% tax
imposed under this Act on sales of food for human consumption
which is to be consumed off the premises where it is sold
(other than alcoholic beverages, soft drinks and food which has
been prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, products
classified as Class III medical devices by the United States
Food and Drug Administration that are used for cancer treatment
pursuant to a prescription, as well as any accessories and
components related to those devices, and insulin, urine testing
materials, syringes and needles used by diabetics.
    Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal property
which is purchased outside Illinois at retail from a retailer
and which is titled or registered by an agency of this State's
government.
    Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury, 20% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property, other than tangible
personal property which is purchased outside Illinois at retail
from a retailer and which is titled or registered by an agency
of this State's government.
    Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. Beginning
September 1, 2010, each month the Department shall pay into the
State and Local Sales Tax Reform Fund 100% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of sales tax holiday items.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property which is
purchased outside Illinois at retail from a retailer and which
is titled or registered by an agency of this State's
government.
    Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
    Beginning July 1, 2011, each month the Department shall pay
into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of sorbents used in Illinois in the process
of sorbent injection as used to comply with the Environmental
Protection Act or the federal Clean Air Act, but the total
payment into the Clean Air Act Permit Fund under this Act and
the Retailers' Occupation Tax Act shall not exceed $2,000,000
in any fiscal year.
    Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Service Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Service Use Tax Act, the Service Occupation Tax Act, and
the Retailers' Occupation Tax Act shall not exceed $18,000,000
in any State fiscal year. As used in this paragraph, the
"average monthly deficit" shall be equal to the difference
between the average monthly claims for payment by the fund and
the average monthly revenues deposited into the fund, excluding
payments made pursuant to this paragraph.
    Beginning July 1, 2015, of the remainder of the moneys
received by the Department under this Act, the Service Use Tax
Act, the Service Occupation Tax Act, and the Retailers'
Occupation Tax Act, each month the Department shall deposit
$500,000 into the State Crime Laboratory Fund.
    Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
    Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098), each month, from the
collections made under Section 9 of the Use Tax Act, Section 9
of the Service Use Tax Act, Section 9 of the Service Occupation
Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year by
the Audit Bureau of the Department under the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
    Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
beginning on July 1, 2018 the Department shall pay each month
into the Downstate Public Transportation Fund the moneys
required to be so paid under Section 2-3 of the Downstate
Public Transportation Act.
    Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
    As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
    For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to such
sales, if the retailers who are affected do not make written
objection to the Department to this arrangement.
(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
99-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.
7-1-18; revised 10-20-17.)
 
    (35 ILCS 105/10)  (from Ch. 120, par. 439.10)
    Sec. 10. Except as to motor vehicles, aircraft, watercraft,
and trailers, and except as to cigarettes as defined in the
Cigarette Use Tax Act, when tangible personal property is
purchased from a retailer for use in this State by a purchaser
who did not pay the tax imposed by this Act to the retailer,
and a purchaser who does not file returns with the Department
as a retailer under Section 9 of this Act, such purchaser (by
the last day of the month following the calendar month in which
such purchaser makes any payment upon the selling price of such
property) shall, except as otherwise provided in this Section,
file a return with the Department and pay the tax upon that
portion of the selling price so paid by the purchaser during
the preceding calendar month. When tangible personal property,
other than motor vehicles and trailers, is purchased by a
lessor, under a lease for one year or longer, executed or in
effect at the time of purchase to an interstate carrier for
hire, who did not pay the tax imposed by this Act to the
retailer, such lessor (by the last day of the month following
the calendar month in which such property reverts to the use of
such lessor) shall file a return with the Department and pay
the tax upon the fair market value of such property on the date
of such reversion. However, in determining the fair market
value at the time of reversion, the fair market value of such
property shall not exceed the original purchase price of the
property that was paid by the lessor at the time of purchase.
Such return shall be filed on a form prescribed by the
Department and shall contain such information as the Department
may reasonably require. Such return and payment from the
purchaser shall be submitted to the Department sooner than the
last day of the month after the month in which the purchase is
made to the extent that that may be necessary in order to
secure the title to a motor vehicle or the certificate of
registration for an aircraft. Except as to motor vehicles,
aircraft, watercraft, and trailers, and except as to cigarettes
as defined in the Cigarette Use Tax Act, when tangible personal
property is purchased out-of-state from a retailer by a
purchaser who did not pay the tax imposed by this Act to the
retailer, and a purchaser who does not file returns with the
Department as a retailer under Section 9 of this Act, the
liability for the tax imposed by the Act arises on the date
such tangible personal property is brought into this State. The
purchaser shall, within 30 days after such tangible personal
property is brought into this State, file with the Department,
upon a form to be prescribed and supplied by the Department, a
return for the tangible personal property purchased. However,
except as to motor vehicles and aircraft, and except as to
cigarettes as defined in the Cigarette Use Tax Act, if the
purchaser's annual use tax liability does not exceed $600, the
purchaser may file the return on an annual basis on or before
April 15th of the year following the year use tax liability was
incurred. Individual purchasers with an annual use tax
liability that does not exceed $600 may, in lieu of the filing
and payment requirements in this Section, file and pay in
compliance with Section 502.1 of the Illinois Income Tax Act.
    If cigarettes, as defined in the Cigarette Use Tax Act, are
purchased from a retailer for use in this State by a purchaser
who did not pay the tax imposed by this Act to the retailer,
and a purchaser who does not file returns with the Department
as a retailer under Section 9 of this Act, such purchaser must,
within 30 days after acquiring the cigarettes, file a return
with the Department and pay the tax upon that portion of the
selling price so paid by the purchaser for the cigarettes. When
cigarettes, as defined in the Cigarette Use Tax Act, are
purchased out-of-state from a retailer for use in this State by
a purchaser who did not pay the tax imposed by this Act to the
retailer, and a purchaser who does not file returns with the
Department as a retailer under Section 9 of this Act, the
liability for the tax imposed by the Act arises on the date
such cigarettes are brought into this State. The purchaser
shall, within 30 days after such cigarettes are brought into
this State, file with the Department, upon a form to be
prescribed and supplied by the Department, a return for the
cigarettes purchased.
    In addition with respect to motor vehicles, aircraft,
watercraft, and trailers, a purchaser of such tangible personal
property for use in this State, who purchases such tangible
personal property from an out-of-state retailer, shall file
with the Department, upon a form to be prescribed and supplied
by the Department, a return for each such item of tangible
personal property purchased, except that if, in the same
transaction, (i) a purchaser of motor vehicles, aircraft,
watercraft, or trailers who is a retailer of motor vehicles,
aircraft, watercraft, or trailers purchases more than one motor
vehicle, aircraft, watercraft, or trailer for the purpose of
resale or (ii) a purchaser of motor vehicles, aircraft,
watercraft, or trailers purchases more than one motor vehicle,
aircraft, watercraft, or trailer for use as qualifying rolling
stock as provided in Section 3-55 of this Act, then the
purchaser may report the purchase of all motor vehicles,
aircraft, watercraft, or trailers involved in that transaction
to the Department on a single return prescribed by the
Department. Such return in the case of motor vehicles and
aircraft must show the name and address of the seller, the
name, address of purchaser, the amount of the selling price
including the amount allowed by the retailer for traded in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 2 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the purchaser with respect to such transaction;
the amount of tax collected from the purchaser by the retailer
on such transaction (or satisfactory evidence that such tax is
not due in that particular instance if that is claimed to be
the fact); the place and date of the sale, a sufficient
identification of the property sold, and such other information
as the Department may reasonably require.
    Such return shall be filed not later than 30 days after
such motor vehicle or aircraft is brought into this State for
use.
    For purposes of this Section, "watercraft" means a Class 2,
Class 3, or Class 4 watercraft as defined in Section 3-2 of the
Boat Registration and Safety Act, a personal watercraft, or any
boat equipped with an inboard motor.
    The return and tax remittance or proof of exemption from
the tax that is imposed by this Act may be transmitted to the
Department by way of the State agency with which, or State
officer with whom, the tangible personal property must be
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
    With each such return, the purchaser shall remit the proper
amount of tax due (or shall submit satisfactory evidence that
the sale is not taxable if that is the case), to the Department
or its agents, whereupon the Department shall issue, in the
purchaser's name, a tax receipt (or a certificate of exemption
if the Department is satisfied that the particular sale is tax
exempt) which such purchaser may submit to the agency with
which, or State officer with whom, he must title or register
the tangible personal property that is involved (if titling or
registration is required) in support of such purchaser's
application for an Illinois certificate or other evidence of
title or registration to such tangible personal property.
    When a purchaser pays a tax imposed by this Act directly to
the Department, the Department (upon request therefor from such
purchaser) shall issue an appropriate receipt to such purchaser
showing that he has paid such tax to the Department. Such
receipt shall be sufficient to relieve the purchaser from
further liability for the tax to which such receipt may refer.
    A user who is liable to pay use tax directly to the
Department only occasionally and not on a frequently recurring
basis, and who is not required to file returns with the
Department as a retailer under Section 9 of this Act, or under
the "Retailers' Occupation Tax Act", or as a registrant with
the Department under the "Service Occupation Tax Act" or the
"Service Use Tax Act", need not register with the Department.
However, if such a user has a frequently recurring direct use
tax liability to pay to the Department, such user shall be
required to register with the Department on forms prescribed by
the Department and to obtain and display a certificate of
registration from the Department. In that event, all of the
provisions of Section 9 of this Act concerning the filing of
regular monthly, quarterly or annual tax returns and all of the
provisions of Section 2a of the "Retailers' Occupation Tax Act"
concerning the requirements for registrants to post bond or
other security with the Department, as the provisions of such
sections now exist or may hereafter be amended, shall apply to
such users to the same extent as if such provisions were
included herein.
(Source: P.A. 100-321, eff. 8-24-17.)
 
    Section 35. The Service Use Tax Act is amended by changing
Sections 3-5, 3-5.5, and 9 as follows:
 
    (35 ILCS 110/3-5)
    Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
    (1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
    (2) Personal property purchased by a non-profit Illinois
county fair association for use in conducting, operating, or
promoting the county fair.
    (3) Personal property purchased by a not-for-profit arts or
cultural organization that establishes, by proof required by
the Department by rule, that it has received an exemption under
Section 501(c)(3) of the Internal Revenue Code and that is
organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after the effective date
of this amendatory Act of the 92nd General Assembly, however,
an entity otherwise eligible for this exemption shall not make
tax-free purchases unless it has an active identification
number issued by the Department.
    (4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
    (5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new and
used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used
primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on July
1, 2017, graphic arts machinery and equipment is included in
the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
    (6) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
    (7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required to
be registered under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses or
hoop houses used for propagating, growing, or overwintering
plants shall be considered farm machinery and equipment under
this item (7). Agricultural chemical tender tanks and dry boxes
shall include units sold separately from a motor vehicle
required to be licensed and units sold mounted on a motor
vehicle required to be licensed if the selling price of the
tender is separately stated.
    Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
    Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (7) is exempt from the
provisions of Section 3-75.
    (8) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the conduct
of its business as an air common carrier, for a flight destined
for or returning from a location or locations outside the
United States without regard to previous or subsequent domestic
stopovers.
    Beginning July 1, 2013, fuel and petroleum products sold to
or used by an air carrier, certified by the carrier to be used
for consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports at
least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
    (9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages acquired as an incident to the purchase of a
service from a serviceman, to the extent that the proceeds of
the service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
    (10) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of rigs,
rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
tubular goods, including casing and drill strings, (iii) pumps
and pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
    (11) Proceeds from the sale of photoprocessing machinery
and equipment, including repair and replacement parts, both new
and used, including that manufactured on special order,
certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and
equipment purchased for lease.
    (12) Coal and aggregate exploration, mining, off-highway
hauling, processing, maintenance, and reclamation equipment,
including replacement parts and equipment, and including
equipment purchased for lease, but excluding motor vehicles
required to be registered under the Illinois Vehicle Code. The
changes made to this Section by Public Act 97-767 apply on and
after July 1, 2003, but no claim for credit or refund is
allowed on or after August 16, 2013 (the effective date of
Public Act 98-456) for such taxes paid during the period
beginning July 1, 2003 and ending on August 16, 2013 (the
effective date of Public Act 98-456).
    (13) Semen used for artificial insemination of livestock
for direct agricultural production.
    (14) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (14) is exempt from the provisions
of Section 3-75, and the exemption provided for under this item
(14) applies for all periods beginning May 30, 1995, but no
claim for credit or refund is allowed on or after the effective
date of this amendatory Act of the 95th General Assembly for
such taxes paid during the period beginning May 30, 2000 and
ending on the effective date of this amendatory Act of the 95th
General Assembly.
    (15) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other non-exempt manner, the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time
the non-qualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that purports
to reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid by
the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that amount
is not refunded to the lessee for any reason, the lessor is
liable to pay that amount to the Department.
    (16) Personal property purchased by a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time the lessor would otherwise be subject to the
tax imposed by this Act, to a governmental body that has been
issued an active tax exemption identification number by the
Department under Section 1g of the Retailers' Occupation Tax
Act. If the property is leased in a manner that does not
qualify for this exemption or is used in any other non-exempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Use Tax Act, as the case may be, based on the
fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid by
the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that amount
is not refunded to the lessee for any reason, the lessor is
liable to pay that amount to the Department.
    (17) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated for
disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
    (18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in the
performance of infrastructure repairs in this State, including
but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer
line extensions, water distribution and purification
facilities, storm water drainage and retention facilities, and
sewage treatment facilities, resulting from a State or
federally declared disaster in Illinois or bordering Illinois
when such repairs are initiated on facilities located in the
declared disaster area within 6 months after the disaster.
    (19) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-75.
    (20) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the Department
to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation,
limited liability company, society, association, foundation,
or institution organized and operated exclusively for
educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful
branches of learning by methods common to public schools and
that compare favorably in their scope and intensity with the
course of study presented in tax-supported schools, and
vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less
than 6 weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical, mechanical,
industrial, business, or commercial occupation.
    (21) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-75.
    (22) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and other
items, and replacement parts for these machines. Beginning
January 1, 2002 and through June 30, 2003, machines and parts
for machines used in commercial, coin-operated amusement and
vending business if a use or occupation tax is paid on the
gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines. This paragraph
is exempt from the provisions of Section 3-75.
    (23) Beginning August 23, 2001 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
    (24) Beginning on the effective date of this amendatory Act
of the 92nd General Assembly, computers and communications
equipment utilized for any hospital purpose and equipment used
in the diagnosis, analysis, or treatment of hospital patients
purchased by a lessor who leases the equipment, under a lease
of one year or longer executed or in effect at the time the
lessor would otherwise be subject to the tax imposed by this
Act, to a hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other nonexempt manner, the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time
the nonqualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that purports
to reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid by
the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that amount
is not refunded to the lessee for any reason, the lessor is
liable to pay that amount to the Department. This paragraph is
exempt from the provisions of Section 3-75.
    (25) Beginning on the effective date of this amendatory Act
of the 92nd General Assembly, personal property purchased by a
lessor who leases the property, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
governmental body that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the property is leased in a
manner that does not qualify for this exemption or is used in
any other nonexempt manner, the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time
the nonqualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that purports
to reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid by
the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that amount
is not refunded to the lessee for any reason, the lessor is
liable to pay that amount to the Department. This paragraph is
exempt from the provisions of Section 3-75.
    (26) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued under
Title IV of the Environmental Protection Act. This paragraph is
exempt from the provisions of Section 3-75.
    (27) Beginning January 1, 2010, materials, parts,
equipment, components, and furnishings incorporated into or
upon an aircraft as part of the modification, refurbishment,
completion, replacement, repair, or maintenance of the
aircraft. This exemption includes consumable supplies used in
the modification, refurbishment, completion, replacement,
repair, and maintenance of aircraft, but excludes any
materials, parts, equipment, components, and consumable
supplies used in the modification, replacement, repair, and
maintenance of aircraft engines or power plants, whether such
engines or power plants are installed or uninstalled upon any
such aircraft. "Consumable supplies" include, but are not
limited to, adhesive, tape, sandpaper, general purpose
lubricants, cleaning solution, latex gloves, and protective
films. This exemption applies only to the use of qualifying
tangible personal property transferred incident to the
modification, refurbishment, completion, replacement, repair,
or maintenance of aircraft by persons who (i) hold an Air
Agency Certificate and are empowered to operate an approved
repair station by the Federal Aviation Administration, (ii)
have a Class IV Rating, and (iii) conduct operations in
accordance with Part 145 of the Federal Aviation Regulations.
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part 129
of the Federal Aviation Regulations. The changes made to this
paragraph (27) by Public Act 98-534 are declarative of existing
law.
    (28) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt instruments
issued by the public-facilities corporation in connection with
the development of the municipal convention hall. This
exemption includes existing public-facilities corporations as
provided in Section 11-65-25 of the Illinois Municipal Code.
This paragraph is exempt from the provisions of Section 3-75.
    (29) Beginning January 1, 2017, menstrual pads, tampons,
and menstrual cups.
    (30) Tangible personal property transferred to a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-75.
(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
100-22, eff. 7-6-17.)
 
    (35 ILCS 110/3-5.5)
    Sec. 3-5.5. Food and drugs sold by not-for-profit
organizations; exemption. The Department shall not collect the
1% tax imposed under this Act on food for human consumption
that is to be consumed off the premises where it is sold (other
than alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and
insulin, urine testing materials, syringes, and needles used by
diabetics, for human use from any not-for-profit organization,
that sells food in a food distribution program at a price below
the retail cost of the food to purchasers who, as a condition
of participation in the program, are required to perform
community service, located in a county or municipality that
notifies the Department, in writing, that the county or
municipality does not want the tax to be collected from any of
such organizations located in the county or municipality.
(Source: P.A. 88-374.)
 
    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
    (Text of Section before amendment by P.A. 100-363)
    Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax (except as otherwise provided) at the time when he
is required to file his return for the period during which such
tax was collected, less a discount of 2.1% prior to January 1,
1990 and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the
serviceman for expenses incurred in collecting the tax, keeping
records, preparing and filing returns, remitting the tax and
supplying data to the Department on request. The discount
allowed under this Section is allowed only for returns that are
filed in the manner required by this Act. The Department may
disallow the discount for servicemen whose certificate of
registration is revoked at the time the return is filed, but
only if the Department's decision to revoke the certificate of
registration has become final. A serviceman need not remit that
part of any tax collected by him to the extent that he is
required to pay and does pay the tax imposed by the Service
Occupation Tax Act with respect to his sale of service
involving the incidental transfer by him of the same property.
    Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar month
in accordance with reasonable Rules and Regulations to be
promulgated by the Department. Such return shall be filed on a
form prescribed by the Department and shall contain such
information as the Department may reasonably require. On and
after January 1, 2018, with respect to servicemen whose annual
gross receipts average $20,000 or more, all returns required to
be filed pursuant to this Act shall be filed electronically.
Servicemen who demonstrate that they do not have access to the
Internet or demonstrate hardship in filing electronically may
petition the Department to waive the electronic filing
requirement.
    The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from
    which he engages in business as a serviceman in this State;
        3. The total amount of taxable receipts received by him
    during the preceding calendar month, including receipts
    from charge and time sales, but less all deductions allowed
    by law;
        4. The amount of credit provided in Section 2d of this
    Act;
        5. The amount of tax due;
        5-5. The signature of the taxpayer; and
        6. Such other reasonable information as the Department
    may require.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
    Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
    All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
    If the serviceman is otherwise required to file a monthly
return and if the serviceman's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
    If the serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's average monthly tax
liability to the Department does not exceed $50, the Department
may authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 20 of the
following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
    Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
    Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds the
selling price thereof to the purchaser, such serviceman shall
also refund, to the purchaser, the tax so collected from the
purchaser. When filing his return for the period in which he
refunds such tax to the purchaser, the serviceman may deduct
the amount of the tax so refunded by him to the purchaser from
any other Service Use Tax, Service Occupation Tax, retailers'
occupation tax or use tax which such serviceman may be required
to pay or remit to the Department, as shown by such return,
provided that the amount of the tax to be deducted shall
previously have been remitted to the Department by such
serviceman. If the serviceman shall not previously have
remitted the amount of such tax to the Department, he shall be
entitled to no deduction hereunder upon refunding such tax to
the purchaser.
    Any serviceman filing a return hereunder shall also include
the total tax upon the selling price of tangible personal
property purchased for use by him as an incident to a sale of
service, and such serviceman shall remit the amount of such tax
to the Department when filing such return.
    If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Service Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
    Where the serviceman has more than one business registered
with the Department under separate registration hereunder,
such serviceman shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
    Beginning January 1, 1990, each month the Department shall
pay into the State and Local Tax Reform Fund, a special fund in
the State Treasury, the net revenue realized for the preceding
month from the 1% tax imposed under this Act on sales of food
for human consumption which is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks
and food which has been prepared for immediate consumption) and
prescription and nonprescription medicines, drugs, medical
appliances, products classified as Class III medical devices,
by the United States Food and Drug Administration that are used
for cancer treatment pursuant to a prescription, as well as any
accessories and components related to those devices, and
insulin, urine testing materials, syringes and needles used by
diabetics.
    Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 20% of the
net revenue realized for the preceding month from the 6.25%
general rate on transfers of tangible personal property, other
than tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government.
    Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
    Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
    Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Occupation Tax Act, and the
Retailers' Occupation Tax Act shall not exceed $18,000,000 in
any State fiscal year. As used in this paragraph, the "average
monthly deficit" shall be equal to the difference between the
average monthly claims for payment by the fund and the average
monthly revenues deposited into the fund, excluding payments
made pursuant to this paragraph.
    Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, this Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, each month the Department shall deposit $500,000 into the
State Crime Laboratory Fund.
    Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
    Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098) this amendatory Act of
the 98th General Assembly, each month, from the collections
made under Section 9 of the Use Tax Act, Section 9 of the
Service Use Tax Act, Section 9 of the Service Occupation Tax
Act, and Section 3 of the Retailers' Occupation Tax Act, the
Department shall pay into the Tax Compliance and Administration
Fund, to be used, subject to appropriation, to fund additional
auditors and compliance personnel at the Department of Revenue,
an amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes
administered by the Department.
    Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the
General Revenue Fund of the State Treasury and 25% shall be
reserved in a special account and used only for the transfer to
the Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the State
Finance Act.
    As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
100-303, eff. 8-24-17; revised 1-22-18.)
 
    (Text of Section after amendment by P.A. 100-363)
    Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax (except as otherwise provided) at the time when he
is required to file his return for the period during which such
tax was collected, less a discount of 2.1% prior to January 1,
1990 and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the
serviceman for expenses incurred in collecting the tax, keeping
records, preparing and filing returns, remitting the tax and
supplying data to the Department on request. The discount
allowed under this Section is allowed only for returns that are
filed in the manner required by this Act. The Department may
disallow the discount for servicemen whose certificate of
registration is revoked at the time the return is filed, but
only if the Department's decision to revoke the certificate of
registration has become final. A serviceman need not remit that
part of any tax collected by him to the extent that he is
required to pay and does pay the tax imposed by the Service
Occupation Tax Act with respect to his sale of service
involving the incidental transfer by him of the same property.
    Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar month
in accordance with reasonable Rules and Regulations to be
promulgated by the Department. Such return shall be filed on a
form prescribed by the Department and shall contain such
information as the Department may reasonably require. On and
after January 1, 2018, with respect to servicemen whose annual
gross receipts average $20,000 or more, all returns required to
be filed pursuant to this Act shall be filed electronically.
Servicemen who demonstrate that they do not have access to the
Internet or demonstrate hardship in filing electronically may
petition the Department to waive the electronic filing
requirement.
    The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from
    which he engages in business as a serviceman in this State;
        3. The total amount of taxable receipts received by him
    during the preceding calendar month, including receipts
    from charge and time sales, but less all deductions allowed
    by law;
        4. The amount of credit provided in Section 2d of this
    Act;
        5. The amount of tax due;
        5-5. The signature of the taxpayer; and
        6. Such other reasonable information as the Department
    may require.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
    Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
    All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
    If the serviceman is otherwise required to file a monthly
return and if the serviceman's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
    If the serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's average monthly tax
liability to the Department does not exceed $50, the Department
may authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 20 of the
following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
    Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
    Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds the
selling price thereof to the purchaser, such serviceman shall
also refund, to the purchaser, the tax so collected from the
purchaser. When filing his return for the period in which he
refunds such tax to the purchaser, the serviceman may deduct
the amount of the tax so refunded by him to the purchaser from
any other Service Use Tax, Service Occupation Tax, retailers'
occupation tax or use tax which such serviceman may be required
to pay or remit to the Department, as shown by such return,
provided that the amount of the tax to be deducted shall
previously have been remitted to the Department by such
serviceman. If the serviceman shall not previously have
remitted the amount of such tax to the Department, he shall be
entitled to no deduction hereunder upon refunding such tax to
the purchaser.
    Any serviceman filing a return hereunder shall also include
the total tax upon the selling price of tangible personal
property purchased for use by him as an incident to a sale of
service, and such serviceman shall remit the amount of such tax
to the Department when filing such return.
    If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Service Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
    Where the serviceman has more than one business registered
with the Department under separate registration hereunder,
such serviceman shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
    Beginning January 1, 1990, each month the Department shall
pay into the State and Local Tax Reform Fund, a special fund in
the State Treasury, the net revenue realized for the preceding
month from the 1% tax imposed under this Act on sales of food
for human consumption which is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks
and food which has been prepared for immediate consumption) and
prescription and nonprescription medicines, drugs, medical
appliances, products classified as Class III medical devices,
by the United States Food and Drug Administration that are used
for cancer treatment pursuant to a prescription, as well as any
accessories and components related to those devices, and
insulin, urine testing materials, syringes and needles used by
diabetics.
    Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 20% of the
net revenue realized for the preceding month from the 6.25%
general rate on transfers of tangible personal property, other
than tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government.
    Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
    Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
    Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Occupation Tax Act, and the
Retailers' Occupation Tax Act shall not exceed $18,000,000 in
any State fiscal year. As used in this paragraph, the "average
monthly deficit" shall be equal to the difference between the
average monthly claims for payment by the fund and the average
monthly revenues deposited into the fund, excluding payments
made pursuant to this paragraph.
    Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, this Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, each month the Department shall deposit $500,000 into the
State Crime Laboratory Fund.
    Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
    Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098) this amendatory Act of
the 98th General Assembly, each month, from the collections
made under Section 9 of the Use Tax Act, Section 9 of the
Service Use Tax Act, Section 9 of the Service Occupation Tax
Act, and Section 3 of the Retailers' Occupation Tax Act, the
Department shall pay into the Tax Compliance and Administration
Fund, to be used, subject to appropriation, to fund additional
auditors and compliance personnel at the Department of Revenue,
an amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes
administered by the Department.
    Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
beginning on July 1, 2018 the Department shall pay each month
into the Downstate Public Transportation Fund the moneys
required to be so paid under Section 2-3 of the Downstate
Public Transportation Act.
    Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the
General Revenue Fund of the State Treasury and 25% shall be
reserved in a special account and used only for the transfer to
the Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the State
Finance Act.
    As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
100-303, eff. 8-24-17; 100-363, eff. 7-1-18; revised 1-22-18.)
 
    Section 40. The Service Occupation Tax Act is amended by
changing Sections 3-5, 3-5.5 and 9 as follows:
 
    (35 ILCS 115/3-5)
    Sec. 3-5. Exemptions. The following tangible personal
property is exempt from the tax imposed by this Act:
    (1) Personal property sold by a corporation, society,
association, foundation, institution, or organization, other
than a limited liability company, that is organized and
operated as a not-for-profit service enterprise for the benefit
of persons 65 years of age or older if the personal property
was not purchased by the enterprise for the purpose of resale
by the enterprise.
    (2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
    (3) Personal property purchased by any not-for-profit arts
or cultural organization that establishes, by proof required by
the Department by rule, that it has received an exemption under
Section 501(c)(3) of the Internal Revenue Code and that is
organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after the effective date
of this amendatory Act of the 92nd General Assembly, however,
an entity otherwise eligible for this exemption shall not make
tax-free purchases unless it has an active identification
number issued by the Department.
    (4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
    (5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new and
used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used
primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on July
1, 2017, graphic arts machinery and equipment is included in
the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
    (6) Personal property sold by a teacher-sponsored student
organization affiliated with an elementary or secondary school
located in Illinois.
    (7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required to
be registered under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses or
hoop houses used for propagating, growing, or overwintering
plants shall be considered farm machinery and equipment under
this item (7). Agricultural chemical tender tanks and dry boxes
shall include units sold separately from a motor vehicle
required to be licensed and units sold mounted on a motor
vehicle required to be licensed if the selling price of the
tender is separately stated.
    Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
    Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (7) is exempt from the
provisions of Section 3-55.
    (8) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the conduct
of its business as an air common carrier, for a flight destined
for or returning from a location or locations outside the
United States without regard to previous or subsequent domestic
stopovers.
    Beginning July 1, 2013, fuel and petroleum products sold to
or used by an air carrier, certified by the carrier to be used
for consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports at
least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
    (9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
    (10) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of rigs,
rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
tubular goods, including casing and drill strings, (iii) pumps
and pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
    (11) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including that
manufactured on special order, certified by the purchaser to be
used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
    (12) Coal and aggregate exploration, mining, off-highway
hauling, processing, maintenance, and reclamation equipment,
including replacement parts and equipment, and including
equipment purchased for lease, but excluding motor vehicles
required to be registered under the Illinois Vehicle Code. The
changes made to this Section by Public Act 97-767 apply on and
after July 1, 2003, but no claim for credit or refund is
allowed on or after August 16, 2013 (the effective date of
Public Act 98-456) for such taxes paid during the period
beginning July 1, 2003 and ending on August 16, 2013 (the
effective date of Public Act 98-456).
    (13) Beginning January 1, 1992 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks and food that has been prepared for immediate
consumption) and prescription and non-prescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
    (14) Semen used for artificial insemination of livestock
for direct agricultural production.
    (15) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (15) is exempt from the provisions
of Section 3-55, and the exemption provided for under this item
(15) applies for all periods beginning May 30, 1995, but no
claim for credit or refund is allowed on or after January 1,
2008 (the effective date of Public Act 95-88) for such taxes
paid during the period beginning May 30, 2000 and ending on
January 1, 2008 (the effective date of Public Act 95-88).
    (16) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor
who leases the equipment, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act.
    (17) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time of the purchase, to a governmental body that
has been issued an active tax exemption identification number
by the Department under Section 1g of the Retailers' Occupation
Tax Act.
    (18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated for
disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
    (19) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in the
performance of infrastructure repairs in this State, including
but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer
line extensions, water distribution and purification
facilities, storm water drainage and retention facilities, and
sewage treatment facilities, resulting from a State or
federally declared disaster in Illinois or bordering Illinois
when such repairs are initiated on facilities located in the
declared disaster area within 6 months after the disaster.
    (20) Beginning July 1, 1999, game or game birds sold at a
"game breeding and hunting preserve area" as that term is used
in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-55.
    (21) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the Department
to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation,
limited liability company, society, association, foundation,
or institution organized and operated exclusively for
educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful
branches of learning by methods common to public schools and
that compare favorably in their scope and intensity with the
course of study presented in tax-supported schools, and
vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less
than 6 weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical, mechanical,
industrial, business, or commercial occupation.
    (22) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-55.
    (23) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and other
items, and replacement parts for these machines. Beginning
January 1, 2002 and through June 30, 2003, machines and parts
for machines used in commercial, coin-operated amusement and
vending business if a use or occupation tax is paid on the
gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines. This paragraph
is exempt from the provisions of Section 3-55.
    (24) Beginning on the effective date of this amendatory Act
of the 92nd General Assembly, computers and communications
equipment utilized for any hospital purpose and equipment used
in the diagnosis, analysis, or treatment of hospital patients
sold to a lessor who leases the equipment, under a lease of one
year or longer executed or in effect at the time of the
purchase, to a hospital that has been issued an active tax
exemption identification number by the Department under
Section 1g of the Retailers' Occupation Tax Act. This paragraph
is exempt from the provisions of Section 3-55.
    (25) Beginning on the effective date of this amendatory Act
of the 92nd General Assembly, personal property sold to a
lessor who leases the property, under a lease of one year or
longer executed or in effect at the time of the purchase, to a
governmental body that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. This paragraph is exempt from
the provisions of Section 3-55.
    (26) Beginning on January 1, 2002 and through June 30,
2016, tangible personal property purchased from an Illinois
retailer by a taxpayer engaged in centralized purchasing
activities in Illinois who will, upon receipt of the property
in Illinois, temporarily store the property in Illinois (i) for
the purpose of subsequently transporting it outside this State
for use or consumption thereafter solely outside this State or
(ii) for the purpose of being processed, fabricated, or
manufactured into, attached to, or incorporated into other
tangible personal property to be transported outside this State
and thereafter used or consumed solely outside this State. The
Director of Revenue shall, pursuant to rules adopted in
accordance with the Illinois Administrative Procedure Act,
issue a permit to any taxpayer in good standing with the
Department who is eligible for the exemption under this
paragraph (26). The permit issued under this paragraph (26)
shall authorize the holder, to the extent and in the manner
specified in the rules adopted under this Act, to purchase
tangible personal property from a retailer exempt from the
taxes imposed by this Act. Taxpayers shall maintain all
necessary books and records to substantiate the use and
consumption of all such tangible personal property outside of
the State of Illinois.
    (27) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued under
Title IV of the Environmental Protection Act. This paragraph is
exempt from the provisions of Section 3-55.
    (28) Tangible personal property sold to a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt instruments
issued by the public-facilities corporation in connection with
the development of the municipal convention hall. This
exemption includes existing public-facilities corporations as
provided in Section 11-65-25 of the Illinois Municipal Code.
This paragraph is exempt from the provisions of Section 3-55.
    (29) Beginning January 1, 2010, materials, parts,
equipment, components, and furnishings incorporated into or
upon an aircraft as part of the modification, refurbishment,
completion, replacement, repair, or maintenance of the
aircraft. This exemption includes consumable supplies used in
the modification, refurbishment, completion, replacement,
repair, and maintenance of aircraft, but excludes any
materials, parts, equipment, components, and consumable
supplies used in the modification, replacement, repair, and
maintenance of aircraft engines or power plants, whether such
engines or power plants are installed or uninstalled upon any
such aircraft. "Consumable supplies" include, but are not
limited to, adhesive, tape, sandpaper, general purpose
lubricants, cleaning solution, latex gloves, and protective
films. This exemption applies only to the transfer of
qualifying tangible personal property incident to the
modification, refurbishment, completion, replacement, repair,
or maintenance of an aircraft by persons who (i) hold an Air
Agency Certificate and are empowered to operate an approved
repair station by the Federal Aviation Administration, (ii)
have a Class IV Rating, and (iii) conduct operations in
accordance with Part 145 of the Federal Aviation Regulations.
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part 129
of the Federal Aviation Regulations. The changes made to this
paragraph (29) by Public Act 98-534 are declarative of existing
law.
    (30) Beginning January 1, 2017, menstrual pads, tampons,
and menstrual cups.
    (31) Tangible personal property transferred to a purchaser
who is exempt from tax by operation of federal law. This
paragraph is exempt from the provisions of Section 3-55.
(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
100-22, eff. 7-6-17.)
 
    (35 ILCS 115/3-5.5)
    Sec. 3-5.5. Food and drugs sold by not-for-profit
organizations; exemption. The Department shall not collect the
1% tax imposed under this Act on food for human consumption
that is to be consumed off the premises where it is sold (other
than alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and
insulin, urine testing materials, syringes, and needles used by
diabetics, for human use from any not-for-profit organization,
that sells food in a food distribution program at a price below
the retail cost of the food to purchasers who, as a condition
of participation in the program, are required to perform
community service, located in a county or municipality that
notifies the Department, in writing, that the county or
municipality does not want the tax to be collected from any of
such organizations located in the county or municipality.
(Source: P.A. 88-374.)
 
    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
    (Text of Section before amendment by P.A. 100-363)
    Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax at the time when he is required to file his return
for the period during which such tax was collectible, less a
discount of 2.1% prior to January 1, 1990, and 1.75% on and
after January 1, 1990, or $5 per calendar year, whichever is
greater, which is allowed to reimburse the serviceman for
expenses incurred in collecting the tax, keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. The discount allowed under
this Section is allowed only for returns that are filed in the
manner required by this Act. The Department may disallow the
discount for servicemen whose certificate of registration is
revoked at the time the return is filed, but only if the
Department's decision to revoke the certificate of
registration has become final.
    Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the serviceman, in collecting the tax may collect, for
each tax return period, only the tax applicable to the part of
the selling price actually received during such tax return
period.
    Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar month
in accordance with reasonable rules and regulations to be
promulgated by the Department of Revenue. Such return shall be
filed on a form prescribed by the Department and shall contain
such information as the Department may reasonably require. On
and after January 1, 2018, with respect to servicemen whose
annual gross receipts average $20,000 or more, all returns
required to be filed pursuant to this Act shall be filed
electronically. Servicemen who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.
    The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from
    which he engages in business as a serviceman in this State;
        3. The total amount of taxable receipts received by him
    during the preceding calendar month, including receipts
    from charge and time sales, but less all deductions allowed
    by law;
        4. The amount of credit provided in Section 2d of this
    Act;
        5. The amount of tax due;
        5-5. The signature of the taxpayer; and
        6. Such other reasonable information as the Department
    may require.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Prior to October 1, 2003, and on and after September 1,
2004 a serviceman may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Service Use
Tax as provided in Section 3-70 of the Service Use Tax Act if
the purchaser provides the appropriate documentation as
required by Section 3-70 of the Service Use Tax Act. A
Manufacturer's Purchase Credit certification, accepted prior
to October 1, 2003 or on or after September 1, 2004 by a
serviceman as provided in Section 3-70 of the Service Use Tax
Act, may be used by that serviceman to satisfy Service
Occupation Tax liability in the amount claimed in the
certification, not to exceed 6.25% of the receipts subject to
tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1, 2004.
No Manufacturer's Purchase Credit may be used after September
30, 2003 through August 31, 2004 to satisfy any tax liability
imposed under this Act, including any audit liability.
    If the serviceman's average monthly tax liability to the
Department does not exceed $200, the Department may authorize
his returns to be filed on a quarter annual basis, with the
return for January, February and March of a given year being
due by April 20 of such year; with the return for April, May
and June of a given year being due by July 20 of such year; with
the return for July, August and September of a given year being
due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
    If the serviceman's average monthly tax liability to the
Department does not exceed $50, the Department may authorize
his returns to be filed on an annual basis, with the return for
a given year being due by January 20 of the following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
    Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
    Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
    Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
    All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
    Where a serviceman collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the serviceman refunds the selling price thereof
to the purchaser, such serviceman shall also refund, to the
purchaser, the tax so collected from the purchaser. When filing
his return for the period in which he refunds such tax to the
purchaser, the serviceman may deduct the amount of the tax so
refunded by him to the purchaser from any other Service
Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
Use Tax which such serviceman may be required to pay or remit
to the Department, as shown by such return, provided that the
amount of the tax to be deducted shall previously have been
remitted to the Department by such serviceman. If the
serviceman shall not previously have remitted the amount of
such tax to the Department, he shall be entitled to no
deduction hereunder upon refunding such tax to the purchaser.
    If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, the Use Tax Act or the Service Use Tax Act, to furnish all
the return information required by all said Acts on the one
form.
    Where the serviceman has more than one business registered
with the Department under separate registrations hereunder,
such serviceman shall file separate returns for each registered
business.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund the revenue realized for
the preceding month from the 1% tax imposed under this Act on
sales of food for human consumption which is to be consumed off
the premises where it is sold (other than alcoholic beverages,
soft drinks and food which has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, products classified as Class III
medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to a
prescription, as well as any accessories and components related
to those devices, and insulin, urine testing materials,
syringes and needles used by diabetics.
    Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
revenue realized for the preceding month from the 6.25% general
rate.
    Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the revenue
realized for the preceding month from the 6.25% general rate on
transfers of tangible personal property.
    Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol.
    Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
    Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Retailers' Occupation Tax Act an amount equal to
the average monthly deficit in the Underground Storage Tank
Fund during the prior year, as certified annually by the
Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Use Tax Act, and the Retailers'
Occupation Tax Act shall not exceed $18,000,000 in any State
fiscal year. As used in this paragraph, the "average monthly
deficit" shall be equal to the difference between the average
monthly claims for payment by the fund and the average monthly
revenues deposited into the fund, excluding payments made
pursuant to this paragraph.
    Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
each month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
    Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Account in the
Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
    Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098) this amendatory Act of
the 98th General Assembly, each month, from the collections
made under Section 9 of the Use Tax Act, Section 9 of the
Service Use Tax Act, Section 9 of the Service Occupation Tax
Act, and Section 3 of the Retailers' Occupation Tax Act, the
Department shall pay into the Tax Compliance and Administration
Fund, to be used, subject to appropriation, to fund additional
auditors and compliance personnel at the Department of Revenue,
an amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes
administered by the Department.
    Of the remainder of the moneys received by the Department
pursuant to this Act, 75% shall be paid into the General
Revenue Fund of the State Treasury and 25% shall be reserved in
a special account and used only for the transfer to the Common
School Fund as part of the monthly transfer from the General
Revenue Fund in accordance with Section 8a of the State Finance
Act.
    The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the taxpayer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the taxpayer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The taxpayer's annual return to the
Department shall also disclose the cost of goods sold by the
taxpayer during the year covered by such return, opening and
closing inventories of such goods for such year, cost of goods
used from stock or taken from stock and given away by the
taxpayer during such year, pay roll information of the
taxpayer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such taxpayer as hereinbefore
provided for in this Section.
    If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
        (i) Until January 1, 1994, the taxpayer shall be liable
    for a penalty equal to 1/6 of 1% of the tax due from such
    taxpayer under this Act during the period to be covered by
    the annual return for each month or fraction of a month
    until such return is filed as required, the penalty to be
    assessed and collected in the same manner as any other
    penalty provided for in this Act.
        (ii) On and after January 1, 1994, the taxpayer shall
    be liable for a penalty as described in Section 3-4 of the
    Uniform Penalty and Interest Act.
    The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
    The foregoing portion of this Section concerning the filing
of an annual information return shall not apply to a serviceman
who is not required to file an income tax return with the
United States Government.
    As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
    For greater simplicity of administration, it shall be
permissible for manufacturers, importers and wholesalers whose
products are sold by numerous servicemen in Illinois, and who
wish to do so, to assume the responsibility for accounting and
paying to the Department all tax accruing under this Act with
respect to such sales, if the servicemen who are affected do
not make written objection to the Department to this
arrangement.
(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
100-303, eff. 8-24-17; revised 10-31-17)
 
    (Text of Section after amendment by P.A. 100-363)
    Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax at the time when he is required to file his return
for the period during which such tax was collectible, less a
discount of 2.1% prior to January 1, 1990, and 1.75% on and
after January 1, 1990, or $5 per calendar year, whichever is
greater, which is allowed to reimburse the serviceman for
expenses incurred in collecting the tax, keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. The discount allowed under
this Section is allowed only for returns that are filed in the
manner required by this Act. The Department may disallow the
discount for servicemen whose certificate of registration is
revoked at the time the return is filed, but only if the
Department's decision to revoke the certificate of
registration has become final.
    Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the serviceman, in collecting the tax may collect, for
each tax return period, only the tax applicable to the part of
the selling price actually received during such tax return
period.
    Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar month
in accordance with reasonable rules and regulations to be
promulgated by the Department of Revenue. Such return shall be
filed on a form prescribed by the Department and shall contain
such information as the Department may reasonably require. On
and after January 1, 2018, with respect to servicemen whose
annual gross receipts average $20,000 or more, all returns
required to be filed pursuant to this Act shall be filed
electronically. Servicemen who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.
    The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from
    which he engages in business as a serviceman in this State;
        3. The total amount of taxable receipts received by him
    during the preceding calendar month, including receipts
    from charge and time sales, but less all deductions allowed
    by law;
        4. The amount of credit provided in Section 2d of this
    Act;
        5. The amount of tax due;
        5-5. The signature of the taxpayer; and
        6. Such other reasonable information as the Department
    may require.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Prior to October 1, 2003, and on and after September 1,
2004 a serviceman may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Service Use
Tax as provided in Section 3-70 of the Service Use Tax Act if
the purchaser provides the appropriate documentation as
required by Section 3-70 of the Service Use Tax Act. A
Manufacturer's Purchase Credit certification, accepted prior
to October 1, 2003 or on or after September 1, 2004 by a
serviceman as provided in Section 3-70 of the Service Use Tax
Act, may be used by that serviceman to satisfy Service
Occupation Tax liability in the amount claimed in the
certification, not to exceed 6.25% of the receipts subject to
tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1, 2004.
No Manufacturer's Purchase Credit may be used after September
30, 2003 through August 31, 2004 to satisfy any tax liability
imposed under this Act, including any audit liability.
    If the serviceman's average monthly tax liability to the
Department does not exceed $200, the Department may authorize
his returns to be filed on a quarter annual basis, with the
return for January, February and March of a given year being
due by April 20 of such year; with the return for April, May
and June of a given year being due by July 20 of such year; with
the return for July, August and September of a given year being
due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
    If the serviceman's average monthly tax liability to the
Department does not exceed $50, the Department may authorize
his returns to be filed on an annual basis, with the return for
a given year being due by January 20 of the following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
    Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
    Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
    Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
    All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
    Where a serviceman collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the serviceman refunds the selling price thereof
to the purchaser, such serviceman shall also refund, to the
purchaser, the tax so collected from the purchaser. When filing
his return for the period in which he refunds such tax to the
purchaser, the serviceman may deduct the amount of the tax so
refunded by him to the purchaser from any other Service
Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
Use Tax which such serviceman may be required to pay or remit
to the Department, as shown by such return, provided that the
amount of the tax to be deducted shall previously have been
remitted to the Department by such serviceman. If the
serviceman shall not previously have remitted the amount of
such tax to the Department, he shall be entitled to no
deduction hereunder upon refunding such tax to the purchaser.
    If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, the Use Tax Act or the Service Use Tax Act, to furnish all
the return information required by all said Acts on the one
form.
    Where the serviceman has more than one business registered
with the Department under separate registrations hereunder,
such serviceman shall file separate returns for each registered
business.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund the revenue realized for
the preceding month from the 1% tax imposed under this Act on
sales of food for human consumption which is to be consumed off
the premises where it is sold (other than alcoholic beverages,
soft drinks and food which has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, products classified as Class III
medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to a
prescription, as well as any accessories and components related
to those devices, and insulin, urine testing materials,
syringes and needles used by diabetics.
    Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
revenue realized for the preceding month from the 6.25% general
rate.
    Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the revenue
realized for the preceding month from the 6.25% general rate on
transfers of tangible personal property.
    Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol.
    Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
    Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Retailers' Occupation Tax Act an amount equal to
the average monthly deficit in the Underground Storage Tank
Fund during the prior year, as certified annually by the
Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Use Tax Act, and the Retailers'
Occupation Tax Act shall not exceed $18,000,000 in any State
fiscal year. As used in this paragraph, the "average monthly
deficit" shall be equal to the difference between the average
monthly claims for payment by the fund and the average monthly
revenues deposited into the fund, excluding payments made
pursuant to this paragraph.
    Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
each month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
    Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Account in the
Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
    Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098) this amendatory Act of
the 98th General Assembly, each month, from the collections
made under Section 9 of the Use Tax Act, Section 9 of the
Service Use Tax Act, Section 9 of the Service Occupation Tax
Act, and Section 3 of the Retailers' Occupation Tax Act, the
Department shall pay into the Tax Compliance and Administration
Fund, to be used, subject to appropriation, to fund additional
auditors and compliance personnel at the Department of Revenue,
an amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes
administered by the Department.
    Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
beginning on July 1, 2018 the Department shall pay each month
into the Downstate Public Transportation Fund the moneys
required to be so paid under Section 2-3 of the Downstate
Public Transportation Act.
    Of the remainder of the moneys received by the Department
pursuant to this Act, 75% shall be paid into the General
Revenue Fund of the State Treasury and 25% shall be reserved in
a special account and used only for the transfer to the Common
School Fund as part of the monthly transfer from the General
Revenue Fund in accordance with Section 8a of the State Finance
Act.
    The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the taxpayer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the taxpayer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The taxpayer's annual return to the
Department shall also disclose the cost of goods sold by the
taxpayer during the year covered by such return, opening and
closing inventories of such goods for such year, cost of goods
used from stock or taken from stock and given away by the
taxpayer during such year, pay roll information of the
taxpayer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such taxpayer as hereinbefore
provided for in this Section.
    If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
        (i) Until January 1, 1994, the taxpayer shall be liable
    for a penalty equal to 1/6 of 1% of the tax due from such
    taxpayer under this Act during the period to be covered by
    the annual return for each month or fraction of a month
    until such return is filed as required, the penalty to be
    assessed and collected in the same manner as any other
    penalty provided for in this Act.
        (ii) On and after January 1, 1994, the taxpayer shall
    be liable for a penalty as described in Section 3-4 of the
    Uniform Penalty and Interest Act.
    The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
    The foregoing portion of this Section concerning the filing
of an annual information return shall not apply to a serviceman
who is not required to file an income tax return with the
United States Government.
    As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
    For greater simplicity of administration, it shall be
permissible for manufacturers, importers and wholesalers whose
products are sold by numerous servicemen in Illinois, and who
wish to do so, to assume the responsibility for accounting and
paying to the Department all tax accruing under this Act with
respect to such sales, if the servicemen who are affected do
not make written objection to the Department to this
arrangement.
(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
100-303, eff. 8-24-17; 100-363, eff. 7-1-18; revised
10-31-17.)
 
    Section 45. The Retailers' Occupation Tax Act is amended by
changing Sections 2-5, 2-5.5, 3, and 5j as follows:
 
    (35 ILCS 120/2-5)
    Sec. 2-5. Exemptions. Gross receipts from proceeds from the
sale of the following tangible personal property are exempt
from the tax imposed by this Act:
        (1) Farm chemicals.
        (2) Farm machinery and equipment, both new and used,
    including that manufactured on special order, certified by
    the purchaser to be used primarily for production
    agriculture or State or federal agricultural programs,
    including individual replacement parts for the machinery
    and equipment, including machinery and equipment purchased
    for lease, and including implements of husbandry defined in
    Section 1-130 of the Illinois Vehicle Code, farm machinery
    and agricultural chemical and fertilizer spreaders, and
    nurse wagons required to be registered under Section 3-809
    of the Illinois Vehicle Code, but excluding other motor
    vehicles required to be registered under the Illinois
    Vehicle Code. Horticultural polyhouses or hoop houses used
    for propagating, growing, or overwintering plants shall be
    considered farm machinery and equipment under this item
    (2). Agricultural chemical tender tanks and dry boxes shall
    include units sold separately from a motor vehicle required
    to be licensed and units sold mounted on a motor vehicle
    required to be licensed, if the selling price of the tender
    is separately stated.
        Farm machinery and equipment shall include precision
    farming equipment that is installed or purchased to be
    installed on farm machinery and equipment including, but
    not limited to, tractors, harvesters, sprayers, planters,
    seeders, or spreaders. Precision farming equipment
    includes, but is not limited to, soil testing sensors,
    computers, monitors, software, global positioning and
    mapping systems, and other such equipment.
        Farm machinery and equipment also includes computers,
    sensors, software, and related equipment used primarily in
    the computer-assisted operation of production agriculture
    facilities, equipment, and activities such as, but not
    limited to, the collection, monitoring, and correlation of
    animal and crop data for the purpose of formulating animal
    diets and agricultural chemicals. This item (2) is exempt
    from the provisions of Section 2-70.
        (3) Until July 1, 2003, distillation machinery and
    equipment, sold as a unit or kit, assembled or installed by
    the retailer, certified by the user to be used only for the
    production of ethyl alcohol that will be used for
    consumption as motor fuel or as a component of motor fuel
    for the personal use of the user, and not subject to sale
    or resale.
        (4) Until July 1, 2003 and beginning again September 1,
    2004 through August 30, 2014, graphic arts machinery and
    equipment, including repair and replacement parts, both
    new and used, and including that manufactured on special
    order or purchased for lease, certified by the purchaser to
    be used primarily for graphic arts production. Equipment
    includes chemicals or chemicals acting as catalysts but
    only if the chemicals or chemicals acting as catalysts
    effect a direct and immediate change upon a graphic arts
    product. Beginning on July 1, 2017, graphic arts machinery
    and equipment is included in the manufacturing and
    assembling machinery and equipment exemption under
    paragraph (14).
        (5) A motor vehicle that is used for automobile
    renting, as defined in the Automobile Renting Occupation
    and Use Tax Act. This paragraph is exempt from the
    provisions of Section 2-70.
        (6) Personal property sold by a teacher-sponsored
    student organization affiliated with an elementary or
    secondary school located in Illinois.
        (7) Until July 1, 2003, proceeds of that portion of the
    selling price of a passenger car the sale of which is
    subject to the Replacement Vehicle Tax.
        (8) Personal property sold to an Illinois county fair
    association for use in conducting, operating, or promoting
    the county fair.
        (9) Personal property sold to a not-for-profit arts or
    cultural organization that establishes, by proof required
    by the Department by rule, that it has received an
    exemption under Section 501(c)(3) of the Internal Revenue
    Code and that is organized and operated primarily for the
    presentation or support of arts or cultural programming,
    activities, or services. These organizations include, but
    are not limited to, music and dramatic arts organizations
    such as symphony orchestras and theatrical groups, arts and
    cultural service organizations, local arts councils,
    visual arts organizations, and media arts organizations.
    On and after July 1, 2001 (the effective date of Public Act
    92-35) this amendatory Act of the 92nd General Assembly,
    however, an entity otherwise eligible for this exemption
    shall not make tax-free purchases unless it has an active
    identification number issued by the Department.
        (10) Personal property sold by a corporation, society,
    association, foundation, institution, or organization,
    other than a limited liability company, that is organized
    and operated as a not-for-profit service enterprise for the
    benefit of persons 65 years of age or older if the personal
    property was not purchased by the enterprise for the
    purpose of resale by the enterprise.
        (11) Personal property sold to a governmental body, to
    a corporation, society, association, foundation, or
    institution organized and operated exclusively for
    charitable, religious, or educational purposes, or to a
    not-for-profit corporation, society, association,
    foundation, institution, or organization that has no
    compensated officers or employees and that is organized and
    operated primarily for the recreation of persons 55 years
    of age or older. A limited liability company may qualify
    for the exemption under this paragraph only if the limited
    liability company is organized and operated exclusively
    for educational purposes. On and after July 1, 1987,
    however, no entity otherwise eligible for this exemption
    shall make tax-free purchases unless it has an active
    identification number issued by the Department.
        (12) (Blank).
        (12-5) On and after July 1, 2003 and through June 30,
    2004, motor vehicles of the second division with a gross
    vehicle weight in excess of 8,000 pounds that are subject
    to the commercial distribution fee imposed under Section
    3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
    2004 and through June 30, 2005, the use in this State of
    motor vehicles of the second division: (i) with a gross
    vehicle weight rating in excess of 8,000 pounds; (ii) that
    are subject to the commercial distribution fee imposed
    under Section 3-815.1 of the Illinois Vehicle Code; and
    (iii) that are primarily used for commercial purposes.
    Through June 30, 2005, this exemption applies to repair and
    replacement parts added after the initial purchase of such
    a motor vehicle if that motor vehicle is used in a manner
    that would qualify for the rolling stock exemption
    otherwise provided for in this Act. For purposes of this
    paragraph, "used for commercial purposes" means the
    transportation of persons or property in furtherance of any
    commercial or industrial enterprise whether for-hire or
    not.
        (13) Proceeds from sales to owners, lessors, or
    shippers of tangible personal property that is utilized by
    interstate carriers for hire for use as rolling stock
    moving in interstate commerce and equipment operated by a
    telecommunications provider, licensed as a common carrier
    by the Federal Communications Commission, which is
    permanently installed in or affixed to aircraft moving in
    interstate commerce.
        (14) Machinery and equipment that will be used by the
    purchaser, or a lessee of the purchaser, primarily in the
    process of manufacturing or assembling tangible personal
    property for wholesale or retail sale or lease, whether the
    sale or lease is made directly by the manufacturer or by
    some other person, whether the materials used in the
    process are owned by the manufacturer or some other person,
    or whether the sale or lease is made apart from or as an
    incident to the seller's engaging in the service occupation
    of producing machines, tools, dies, jigs, patterns,
    gauges, or other similar items of no commercial value on
    special order for a particular purchaser. The exemption
    provided by this paragraph (14) does not include machinery
    and equipment used in (i) the generation of electricity for
    wholesale or retail sale; (ii) the generation or treatment
    of natural or artificial gas for wholesale or retail sale
    that is delivered to customers through pipes, pipelines, or
    mains; or (iii) the treatment of water for wholesale or
    retail sale that is delivered to customers through pipes,
    pipelines, or mains. The provisions of Public Act 98-583
    are declaratory of existing law as to the meaning and scope
    of this exemption. Beginning on July 1, 2017, the exemption
    provided by this paragraph (14) includes, but is not
    limited to, graphic arts machinery and equipment, as
    defined in paragraph (4) of this Section.
        (15) Proceeds of mandatory service charges separately
    stated on customers' bills for purchase and consumption of
    food and beverages, to the extent that the proceeds of the
    service charge are in fact turned over as tips or as a
    substitute for tips to the employees who participate
    directly in preparing, serving, hosting or cleaning up the
    food or beverage function with respect to which the service
    charge is imposed.
        (16) Tangible personal property Petroleum products
    sold to a purchaser if the purchaser is exempt from use tax
    seller is prohibited by operation of federal law from
    charging tax to the purchaser. This paragraph is exempt
    from the provisions of Section 2-70.
        (17) Tangible personal property sold to a common
    carrier by rail or motor that receives the physical
    possession of the property in Illinois and that transports
    the property, or shares with another common carrier in the
    transportation of the property, out of Illinois on a
    standard uniform bill of lading showing the seller of the
    property as the shipper or consignor of the property to a
    destination outside Illinois, for use outside Illinois.
        (18) Legal tender, currency, medallions, or gold or
    silver coinage issued by the State of Illinois, the
    government of the United States of America, or the
    government of any foreign country, and bullion.
        (19) Until July 1, 2003, oil field exploration,
    drilling, and production equipment, including (i) rigs and
    parts of rigs, rotary rigs, cable tool rigs, and workover
    rigs, (ii) pipe and tubular goods, including casing and
    drill strings, (iii) pumps and pump-jack units, (iv)
    storage tanks and flow lines, (v) any individual
    replacement part for oil field exploration, drilling, and
    production equipment, and (vi) machinery and equipment
    purchased for lease; but excluding motor vehicles required
    to be registered under the Illinois Vehicle Code.
        (20) Photoprocessing machinery and equipment,
    including repair and replacement parts, both new and used,
    including that manufactured on special order, certified by
    the purchaser to be used primarily for photoprocessing, and
    including photoprocessing machinery and equipment
    purchased for lease.
        (21) Coal and aggregate exploration, mining,
    off-highway hauling, processing, maintenance, and
    reclamation equipment, including replacement parts and
    equipment, and including equipment purchased for lease,
    but excluding motor vehicles required to be registered
    under the Illinois Vehicle Code. The changes made to this
    Section by Public Act 97-767 apply on and after July 1,
    2003, but no claim for credit or refund is allowed on or
    after August 16, 2013 (the effective date of Public Act
    98-456) for such taxes paid during the period beginning
    July 1, 2003 and ending on August 16, 2013 (the effective
    date of Public Act 98-456).
        (22) Until June 30, 2013, fuel and petroleum products
    sold to or used by an air carrier, certified by the carrier
    to be used for consumption, shipment, or storage in the
    conduct of its business as an air common carrier, for a
    flight destined for or returning from a location or
    locations outside the United States without regard to
    previous or subsequent domestic stopovers.
        Beginning July 1, 2013, fuel and petroleum products
    sold to or used by an air carrier, certified by the carrier
    to be used for consumption, shipment, or storage in the
    conduct of its business as an air common carrier, for a
    flight that (i) is engaged in foreign trade or is engaged
    in trade between the United States and any of its
    possessions and (ii) transports at least one individual or
    package for hire from the city of origination to the city
    of final destination on the same aircraft, without regard
    to a change in the flight number of that aircraft.
        (23) A transaction in which the purchase order is
    received by a florist who is located outside Illinois, but
    who has a florist located in Illinois deliver the property
    to the purchaser or the purchaser's donee in Illinois.
        (24) Fuel consumed or used in the operation of ships,
    barges, or vessels that are used primarily in or for the
    transportation of property or the conveyance of persons for
    hire on rivers bordering on this State if the fuel is
    delivered by the seller to the purchaser's barge, ship, or
    vessel while it is afloat upon that bordering river.
        (25) Except as provided in item (25-5) of this Section,
    a motor vehicle sold in this State to a nonresident even
    though the motor vehicle is delivered to the nonresident in
    this State, if the motor vehicle is not to be titled in
    this State, and if a drive-away permit is issued to the
    motor vehicle as provided in Section 3-603 of the Illinois
    Vehicle Code or if the nonresident purchaser has vehicle
    registration plates to transfer to the motor vehicle upon
    returning to his or her home state. The issuance of the
    drive-away permit or having the out-of-state registration
    plates to be transferred is prima facie evidence that the
    motor vehicle will not be titled in this State.
        (25-5) The exemption under item (25) does not apply if
    the state in which the motor vehicle will be titled does
    not allow a reciprocal exemption for a motor vehicle sold
    and delivered in that state to an Illinois resident but
    titled in Illinois. The tax collected under this Act on the
    sale of a motor vehicle in this State to a resident of
    another state that does not allow a reciprocal exemption
    shall be imposed at a rate equal to the state's rate of tax
    on taxable property in the state in which the purchaser is
    a resident, except that the tax shall not exceed the tax
    that would otherwise be imposed under this Act. At the time
    of the sale, the purchaser shall execute a statement,
    signed under penalty of perjury, of his or her intent to
    title the vehicle in the state in which the purchaser is a
    resident within 30 days after the sale and of the fact of
    the payment to the State of Illinois of tax in an amount
    equivalent to the state's rate of tax on taxable property
    in his or her state of residence and shall submit the
    statement to the appropriate tax collection agency in his
    or her state of residence. In addition, the retailer must
    retain a signed copy of the statement in his or her
    records. Nothing in this item shall be construed to require
    the removal of the vehicle from this state following the
    filing of an intent to title the vehicle in the purchaser's
    state of residence if the purchaser titles the vehicle in
    his or her state of residence within 30 days after the date
    of sale. The tax collected under this Act in accordance
    with this item (25-5) shall be proportionately distributed
    as if the tax were collected at the 6.25% general rate
    imposed under this Act.
        (25-7) Beginning on July 1, 2007, no tax is imposed
    under this Act on the sale of an aircraft, as defined in
    Section 3 of the Illinois Aeronautics Act, if all of the
    following conditions are met:
            (1) the aircraft leaves this State within 15 days
        after the later of either the issuance of the final
        billing for the sale of the aircraft, or the authorized
        approval for return to service, completion of the
        maintenance record entry, and completion of the test
        flight and ground test for inspection, as required by
        14 C.F.R. 91.407;
            (2) the aircraft is not based or registered in this
        State after the sale of the aircraft; and
            (3) the seller retains in his or her books and
        records and provides to the Department a signed and
        dated certification from the purchaser, on a form
        prescribed by the Department, certifying that the
        requirements of this item (25-7) are met. The
        certificate must also include the name and address of
        the purchaser, the address of the location where the
        aircraft is to be titled or registered, the address of
        the primary physical location of the aircraft, and
        other information that the Department may reasonably
        require.
        For purposes of this item (25-7):
        "Based in this State" means hangared, stored, or
    otherwise used, excluding post-sale customizations as
    defined in this Section, for 10 or more days in each
    12-month period immediately following the date of the sale
    of the aircraft.
        "Registered in this State" means an aircraft
    registered with the Department of Transportation,
    Aeronautics Division, or titled or registered with the
    Federal Aviation Administration to an address located in
    this State.
        This paragraph (25-7) is exempt from the provisions of
    Section 2-70.
        (26) Semen used for artificial insemination of
    livestock for direct agricultural production.
        (27) Horses, or interests in horses, registered with
    and meeting the requirements of any of the Arabian Horse
    Club Registry of America, Appaloosa Horse Club, American
    Quarter Horse Association, United States Trotting
    Association, or Jockey Club, as appropriate, used for
    purposes of breeding or racing for prizes. This item (27)
    is exempt from the provisions of Section 2-70, and the
    exemption provided for under this item (27) applies for all
    periods beginning May 30, 1995, but no claim for credit or
    refund is allowed on or after January 1, 2008 (the
    effective date of Public Act 95-88) for such taxes paid
    during the period beginning May 30, 2000 and ending on
    January 1, 2008 (the effective date of Public Act 95-88).
        (28) Computers and communications equipment utilized
    for any hospital purpose and equipment used in the
    diagnosis, analysis, or treatment of hospital patients
    sold to a lessor who leases the equipment, under a lease of
    one year or longer executed or in effect at the time of the
    purchase, to a hospital that has been issued an active tax
    exemption identification number by the Department under
    Section 1g of this Act.
        (29) Personal property sold to a lessor who leases the
    property, under a lease of one year or longer executed or
    in effect at the time of the purchase, to a governmental
    body that has been issued an active tax exemption
    identification number by the Department under Section 1g of
    this Act.
        (30) Beginning with taxable years ending on or after
    December 31, 1995 and ending with taxable years ending on
    or before December 31, 2004, personal property that is
    donated for disaster relief to be used in a State or
    federally declared disaster area in Illinois or bordering
    Illinois by a manufacturer or retailer that is registered
    in this State to a corporation, society, association,
    foundation, or institution that has been issued a sales tax
    exemption identification number by the Department that
    assists victims of the disaster who reside within the
    declared disaster area.
        (31) Beginning with taxable years ending on or after
    December 31, 1995 and ending with taxable years ending on
    or before December 31, 2004, personal property that is used
    in the performance of infrastructure repairs in this State,
    including but not limited to municipal roads and streets,
    access roads, bridges, sidewalks, waste disposal systems,
    water and sewer line extensions, water distribution and
    purification facilities, storm water drainage and
    retention facilities, and sewage treatment facilities,
    resulting from a State or federally declared disaster in
    Illinois or bordering Illinois when such repairs are
    initiated on facilities located in the declared disaster
    area within 6 months after the disaster.
        (32) Beginning July 1, 1999, game or game birds sold at
    a "game breeding and hunting preserve area" as that term is
    used in the Wildlife Code. This paragraph is exempt from
    the provisions of Section 2-70.
        (33) A motor vehicle, as that term is defined in
    Section 1-146 of the Illinois Vehicle Code, that is donated
    to a corporation, limited liability company, society,
    association, foundation, or institution that is determined
    by the Department to be organized and operated exclusively
    for educational purposes. For purposes of this exemption,
    "a corporation, limited liability company, society,
    association, foundation, or institution organized and
    operated exclusively for educational purposes" means all
    tax-supported public schools, private schools that offer
    systematic instruction in useful branches of learning by
    methods common to public schools and that compare favorably
    in their scope and intensity with the course of study
    presented in tax-supported schools, and vocational or
    technical schools or institutes organized and operated
    exclusively to provide a course of study of not less than 6
    weeks duration and designed to prepare individuals to
    follow a trade or to pursue a manual, technical,
    mechanical, industrial, business, or commercial
    occupation.
        (34) Beginning January 1, 2000, personal property,
    including food, purchased through fundraising events for
    the benefit of a public or private elementary or secondary
    school, a group of those schools, or one or more school
    districts if the events are sponsored by an entity
    recognized by the school district that consists primarily
    of volunteers and includes parents and teachers of the
    school children. This paragraph does not apply to
    fundraising events (i) for the benefit of private home
    instruction or (ii) for which the fundraising entity
    purchases the personal property sold at the events from
    another individual or entity that sold the property for the
    purpose of resale by the fundraising entity and that
    profits from the sale to the fundraising entity. This
    paragraph is exempt from the provisions of Section 2-70.
        (35) Beginning January 1, 2000 and through December 31,
    2001, new or used automatic vending machines that prepare
    and serve hot food and beverages, including coffee, soup,
    and other items, and replacement parts for these machines.
    Beginning January 1, 2002 and through June 30, 2003,
    machines and parts for machines used in commercial,
    coin-operated amusement and vending business if a use or
    occupation tax is paid on the gross receipts derived from
    the use of the commercial, coin-operated amusement and
    vending machines. This paragraph is exempt from the
    provisions of Section 2-70.
        (35-5) Beginning August 23, 2001 and through June 30,
    2016, food for human consumption that is to be consumed off
    the premises where it is sold (other than alcoholic
    beverages, soft drinks, and food that has been prepared for
    immediate consumption) and prescription and
    nonprescription medicines, drugs, medical appliances, and
    insulin, urine testing materials, syringes, and needles
    used by diabetics, for human use, when purchased for use by
    a person receiving medical assistance under Article V of
    the Illinois Public Aid Code who resides in a licensed
    long-term care facility, as defined in the Nursing Home
    Care Act, or a licensed facility as defined in the ID/DD
    Community Care Act, the MC/DD Act, or the Specialized
    Mental Health Rehabilitation Act of 2013.
        (36) Beginning August 2, 2001, computers and
    communications equipment utilized for any hospital purpose
    and equipment used in the diagnosis, analysis, or treatment
    of hospital patients sold to a lessor who leases the
    equipment, under a lease of one year or longer executed or
    in effect at the time of the purchase, to a hospital that
    has been issued an active tax exemption identification
    number by the Department under Section 1g of this Act. This
    paragraph is exempt from the provisions of Section 2-70.
        (37) Beginning August 2, 2001, personal property sold
    to a lessor who leases the property, under a lease of one
    year or longer executed or in effect at the time of the
    purchase, to a governmental body that has been issued an
    active tax exemption identification number by the
    Department under Section 1g of this Act. This paragraph is
    exempt from the provisions of Section 2-70.
        (38) Beginning on January 1, 2002 and through June 30,
    2016, tangible personal property purchased from an
    Illinois retailer by a taxpayer engaged in centralized
    purchasing activities in Illinois who will, upon receipt of
    the property in Illinois, temporarily store the property in
    Illinois (i) for the purpose of subsequently transporting
    it outside this State for use or consumption thereafter
    solely outside this State or (ii) for the purpose of being
    processed, fabricated, or manufactured into, attached to,
    or incorporated into other tangible personal property to be
    transported outside this State and thereafter used or
    consumed solely outside this State. The Director of Revenue
    shall, pursuant to rules adopted in accordance with the
    Illinois Administrative Procedure Act, issue a permit to
    any taxpayer in good standing with the Department who is
    eligible for the exemption under this paragraph (38). The
    permit issued under this paragraph (38) shall authorize the
    holder, to the extent and in the manner specified in the
    rules adopted under this Act, to purchase tangible personal
    property from a retailer exempt from the taxes imposed by
    this Act. Taxpayers shall maintain all necessary books and
    records to substantiate the use and consumption of all such
    tangible personal property outside of the State of
    Illinois.
        (39) Beginning January 1, 2008, tangible personal
    property used in the construction or maintenance of a
    community water supply, as defined under Section 3.145 of
    the Environmental Protection Act, that is operated by a
    not-for-profit corporation that holds a valid water supply
    permit issued under Title IV of the Environmental
    Protection Act. This paragraph is exempt from the
    provisions of Section 2-70.
        (40) Beginning January 1, 2010, materials, parts,
    equipment, components, and furnishings incorporated into
    or upon an aircraft as part of the modification,
    refurbishment, completion, replacement, repair, or
    maintenance of the aircraft. This exemption includes
    consumable supplies used in the modification,
    refurbishment, completion, replacement, repair, and
    maintenance of aircraft, but excludes any materials,
    parts, equipment, components, and consumable supplies used
    in the modification, replacement, repair, and maintenance
    of aircraft engines or power plants, whether such engines
    or power plants are installed or uninstalled upon any such
    aircraft. "Consumable supplies" include, but are not
    limited to, adhesive, tape, sandpaper, general purpose
    lubricants, cleaning solution, latex gloves, and
    protective films. This exemption applies only to the sale
    of qualifying tangible personal property to persons who
    modify, refurbish, complete, replace, or maintain an
    aircraft and who (i) hold an Air Agency Certificate and are
    empowered to operate an approved repair station by the
    Federal Aviation Administration, (ii) have a Class IV
    Rating, and (iii) conduct operations in accordance with
    Part 145 of the Federal Aviation Regulations. The exemption
    does not include aircraft operated by a commercial air
    carrier providing scheduled passenger air service pursuant
    to authority issued under Part 121 or Part 129 of the
    Federal Aviation Regulations. The changes made to this
    paragraph (40) by Public Act 98-534 are declarative of
    existing law.
        (41) Tangible personal property sold to a
    public-facilities corporation, as described in Section
    11-65-10 of the Illinois Municipal Code, for purposes of
    constructing or furnishing a municipal convention hall,
    but only if the legal title to the municipal convention
    hall is transferred to the municipality without any further
    consideration by or on behalf of the municipality at the
    time of the completion of the municipal convention hall or
    upon the retirement or redemption of any bonds or other
    debt instruments issued by the public-facilities
    corporation in connection with the development of the
    municipal convention hall. This exemption includes
    existing public-facilities corporations as provided in
    Section 11-65-25 of the Illinois Municipal Code. This
    paragraph is exempt from the provisions of Section 2-70.
        (42) Beginning January 1, 2017, menstrual pads,
    tampons, and menstrual cups.
        (43) Merchandise that is subject to the Rental Purchase
    Agreement Occupation and Use Tax. The purchaser must
    certify that the item is purchased to be rented subject to
    a rental purchase agreement, as defined in the Rental
    Purchase Agreement Act, and provide proof of registration
    under the Rental Purchase Agreement Occupation and Use Tax
    Act. This paragraph is exempt from the provisions of
    Section 2-70.
(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff.
1-1-18; revised 9-26-17.)
 
    (35 ILCS 120/2-5.5)
    Sec. 2-5.5. Food and drugs sold by not-for-profit
organizations; exemption. The Department shall not collect the
1% tax imposed under this Act on food for human consumption
that is to be consumed off the premises where it is sold (other
than alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and
insulin, urine testing materials, syringes, and needles used by
diabetics, for human use from any not-for-profit organization,
that sells food in a food distribution program at a price below
the retail cost of the food to purchasers who, as a condition
of participation in the program, are required to perform
community service, located in a county or municipality that
notifies the Department, in writing, that the county or
municipality does not want the tax to be collected from any of
such organizations located in the county or municipality.
(Source: P.A. 88-374.)
 
    (35 ILCS 120/3)  (from Ch. 120, par. 442)
    (Text of Section before amendment by P.A. 100-363)
    Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person engaged
in the business of selling tangible personal property at retail
in this State during the preceding calendar month shall file a
return with the Department, stating:
        1. The name of the seller;
        2. His residence address and the address of his
    principal place of business and the address of the
    principal place of business (if that is a different
    address) from which he engages in the business of selling
    tangible personal property at retail in this State;
        3. Total amount of receipts received by him during the
    preceding calendar month or quarter, as the case may be,
    from sales of tangible personal property, and from services
    furnished, by him during such preceding calendar month or
    quarter;
        4. Total amount received by him during the preceding
    calendar month or quarter on charge and time sales of
    tangible personal property, and from services furnished,
    by him prior to the month or quarter for which the return
    is filed;
        5. Deductions allowed by law;
        6. Gross receipts which were received by him during the
    preceding calendar month or quarter and upon the basis of
    which the tax is imposed;
        7. The amount of credit provided in Section 2d of this
    Act;
        8. The amount of tax due;
        9. The signature of the taxpayer; and
        10. Such other reasonable information as the
    Department may require.
    On and after January 1, 2018, except for returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. Retailers who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.
    Prior to October 1, 2003, and on and after September 1,
2004 a retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's
Purchaser Credit reported on annual returns due on or after
January 1, 2005 will be disallowed for periods prior to
September 1, 2004. No Manufacturer's Purchase Credit may be
used after September 30, 2003 through August 31, 2004 to
satisfy any tax liability imposed under this Act, including any
audit liability.
    The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from
    which he engages in the business of selling tangible
    personal property at retail in this State;
        3. The total amount of taxable receipts received by him
    during the preceding calendar month from sales of tangible
    personal property by him during such preceding calendar
    month, including receipts from charge and time sales, but
    less all deductions allowed by law;
        4. The amount of credit provided in Section 2d of this
    Act;
        5. The amount of tax due; and
        6. Such other reasonable information as the Department
    may require.
    Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,
as defined in the Liquor Control Act of 1934, but is engaged in
the business of selling, at retail, alcoholic liquor shall file
a statement with the Department of Revenue, in a format and at
a time prescribed by the Department, showing the total amount
paid for alcoholic liquor purchased during the preceding month
and such other information as is reasonably required by the
Department. The Department may adopt rules to require that this
statement be filed in an electronic or telephonic format. Such
rules may provide for exceptions from the filing requirements
of this paragraph. For the purposes of this paragraph, the term
"alcoholic liquor" shall have the meaning prescribed in the
Liquor Control Act of 1934.
    Beginning on October 1, 2003, every distributor, importing
distributor, and manufacturer of alcoholic liquor as defined in
the Liquor Control Act of 1934, shall file a statement with the
Department of Revenue, no later than the 10th day of the month
for the preceding month during which transactions occurred, by
electronic means, showing the total amount of gross receipts
from the sale of alcoholic liquor sold or distributed during
the preceding month to purchasers; identifying the purchaser to
whom it was sold or distributed; the purchaser's tax
registration number; and such other information reasonably
required by the Department. A distributor, importing
distributor, or manufacturer of alcoholic liquor must
personally deliver, mail, or provide by electronic means to
each retailer listed on the monthly statement a report
containing a cumulative total of that distributor's, importing
distributor's, or manufacturer's total sales of alcoholic
liquor to that retailer no later than the 10th day of the month
for the preceding month during which the transaction occurred.
The distributor, importing distributor, or manufacturer shall
notify the retailer as to the method by which the distributor,
importing distributor, or manufacturer will provide the sales
information. If the retailer is unable to receive the sales
information by electronic means, the distributor, importing
distributor, or manufacturer shall furnish the sales
information by personal delivery or by mail. For purposes of
this paragraph, the term "electronic means" includes, but is
not limited to, the use of a secure Internet website, e-mail,
or facsimile.
    If a total amount of less than $1 is payable, refundable or
creditable, such amount shall be disregarded if it is less than
50 cents and shall be increased to $1 if it is 50 cents or more.
    Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" shall be the sum of
the taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
    Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
    All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
    Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount in any case where the fractional part of a
dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
    If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
    If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
    Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
    Where the same person has more than one business registered
with the Department under separate registrations under this
Act, such person may not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
    In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle
retailer or trailer retailer for the purpose of resale or (ii)
a retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle, or
trailer to a purchaser for use as a qualifying rolling stock as
provided in Section 2-5 of this Act, then that seller may
report the transfer of all aircraft, watercraft, motor vehicles
or trailers involved in that transaction to the Department on
the same uniform invoice-transaction reporting return form.
For purposes of this Section, "watercraft" means a Class 2,
Class 3, or Class 4 watercraft as defined in Section 3-2 of the
Boat Registration and Safety Act, a personal watercraft, or any
boat equipped with an inboard motor.
    In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting the
transfer of all the aircraft, watercraft, motor vehicles, or
trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th day of the month following
the month in which the transfer takes place. Notwithstanding
any other provision of this Act to the contrary, all returns
filed under this paragraph must be filed by electronic means in
the manner and form as required by the Department.
    Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation tax
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise required
to file monthly or quarterly returns, need not file monthly or
quarterly returns. However, those retailers shall be required
to file returns on an annual basis.
    The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with an
agency of this State, shall be the same document as the Uniform
Invoice referred to in Section 5-402 of The Illinois Vehicle
Code and must show the name and address of the seller; the name
and address of the purchaser; the amount of the selling price
including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 1 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the retailer with respect to such transaction; the
amount of tax collected from the purchaser by the retailer on
such transaction (or satisfactory evidence that such tax is not
due in that particular instance, if that is claimed to be the
fact); the place and date of the sale; a sufficient
identification of the property sold; such other information as
is required in Section 5-402 of The Illinois Vehicle Code, and
such other information as the Department may reasonably
require.
    The transaction reporting return in the case of watercraft
or aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling price;
the amount of tax due from the retailer with respect to such
transaction; the amount of tax collected from the purchaser by
the retailer on such transaction (or satisfactory evidence that
such tax is not due in that particular instance, if that is
claimed to be the fact); the place and date of the sale, a
sufficient identification of the property sold, and such other
information as the Department may reasonably require.
    Such transaction reporting return shall be filed not later
than 20 days after the day of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the
Illinois use tax may be transmitted to the Department by way of
the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if
titling or registration is required) if the Department and such
agency or State officer determine that this procedure will
expedite the processing of applications for title or
registration.
    With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a use tax
receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such
purchaser may submit to the agency with which, or State officer
with whom, he must title or register the tangible personal
property that is involved (if titling or registration is
required) in support of such purchaser's application for an
Illinois certificate or other evidence of title or registration
to such tangible personal property.
    No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
    If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment of
the tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
    Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case
may be, in case the seller had theretofore included the
receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
    Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary or treasurer or by the properly
accredited agent of such corporation.
    Where the seller is a limited liability company, the return
filed on behalf of the limited liability company shall be
signed by a manager, member, or properly accredited agent of
the limited liability company.
    Except as provided in this Section, the retailer filing the
return under this Section shall, at the time of filing such
return, pay to the Department the amount of tax imposed by this
Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
on and after January 1, 1990, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. Any prepayment made pursuant
to Section 2d of this Act shall be included in the amount on
which such 2.1% or 1.75% discount is computed. In the case of
retailers who report and pay the tax on a transaction by
transaction basis, as provided in this Section, such discount
shall be taken with each such tax remittance instead of when
such retailer files his periodic return. The discount allowed
under this Section is allowed only for returns that are filed
in the manner required by this Act. The Department may disallow
the discount for retailers whose certificate of registration is
revoked at the time the return is filed, but only if the
Department's decision to revoke the certificate of
registration has become final.
    Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was $10,000
or more during the preceding 4 complete calendar quarters, he
shall file a return with the Department each month by the 20th
day of the month next following the month during which such tax
liability is incurred and shall make payments to the Department
on or before the 7th, 15th, 22nd and last day of the month
during which such liability is incurred. On and after October
1, 2000, if the taxpayer's average monthly tax liability to the
Department under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Service Use Tax Act, excluding any
liability for prepaid sales tax to be remitted in accordance
with Section 2d of this Act, was $20,000 or more during the
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the 20th day of the month
next following the month during which such tax liability is
incurred and shall make payment to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such
liability is incurred. If the month during which such tax
liability is incurred began prior to January 1, 1985, each
payment shall be in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the
Department not to exceed 1/4 of the average monthly liability
of the taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability and
the month of lowest liability in such 4 quarter period). If the
month during which such tax liability is incurred begins on or
after January 1, 1985 and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 27.5% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1987 and prior to January 1, 1988, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or
begins on or after January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during which
such tax liability is incurred begins on or after January 1,
1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. Before October 1, 2000, once applicable, the
requirement of the making of quarter monthly payments to the
Department by taxpayers having an average monthly tax liability
of $10,000 or more as determined in the manner provided above
shall continue until such taxpayer's average monthly liability
to the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status. On
and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $20,000 or
more as determined in the manner provided above shall continue
until such taxpayer's average monthly liability to the
Department during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of
lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarter period is less than $20,000. However, if a taxpayer can
show the Department that a substantial change in the taxpayer's
business has occurred which causes the taxpayer to anticipate
that his average monthly tax liability for the reasonably
foreseeable future will fall below the $20,000 threshold stated
above, then such taxpayer may petition the Department for a
change in such taxpayer's reporting status. The Department
shall change such taxpayer's reporting status unless it finds
that such change is seasonal in nature and not likely to be
long term. If any such quarter monthly payment is not paid at
the time or in the amount required by this Section, then the
taxpayer shall be liable for penalties and interest on the
difference between the minimum amount due as a payment and the
amount of such quarter monthly payment actually and timely
paid, except insofar as the taxpayer has previously made
payments for that month to the Department in excess of the
minimum payments previously due as provided in this Section.
The Department shall make reasonable rules and regulations to
govern the quarter monthly payment amount and quarter monthly
payment dates for taxpayers who file on other than a calendar
monthly basis.
    The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average in
excess of $25,000 per month during the preceding 2 complete
calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which such liability is incurred. If the month
during which such tax liability is incurred began prior to
September 1, 1985 (the effective date of Public Act 84-221),
each payment shall be in an amount not less than 22.5% of the
taxpayer's actual liability under Section 2d. If the month
during which such tax liability is incurred begins on or after
January 1, 1986, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or 27.5%
of the taxpayer's liability for the same calendar month of the
preceding calendar year. If the month during which such tax
liability is incurred begins on or after January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year.
The amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month filed under this Section or Section 2f, as the case
may be. Once applicable, the requirement of the making of
quarter monthly payments to the Department pursuant to this
paragraph shall continue until such taxpayer's average monthly
prepaid tax collections during the preceding 2 complete
calendar quarters is $25,000 or less. If any such quarter
monthly payment is not paid at the time or in the amount
required, the taxpayer shall be liable for penalties and
interest on such difference, except insofar as the taxpayer has
previously made payments for that month in excess of the
minimum payments previously due.
    The provisions of this paragraph apply on and after October
1, 2001. Without regard to whether a taxpayer is required to
make quarter monthly payments as specified above, any taxpayer
who is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes that average in
excess of $20,000 per month during the preceding 4 complete
calendar quarters shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which the liability is incurred. Each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 25% of the taxpayer's liability for
the same calendar month of the preceding year. The amount of
the quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month
filed under this Section or Section 2f, as the case may be.
Once applicable, the requirement of the making of quarter
monthly payments to the Department pursuant to this paragraph
shall continue until the taxpayer's average monthly prepaid tax
collections during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of
lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarters is less than $20,000. If any such quarter monthly
payment is not paid at the time or in the amount required, the
taxpayer shall be liable for penalties and interest on such
difference, except insofar as the taxpayer has previously made
payments for that month in excess of the minimum payments
previously due.
    If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment. The
credit evidenced by such credit memorandum may be assigned by
the taxpayer to a similar taxpayer under this Act, the Use Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's 2.1%
and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
of the difference between the credit taken and that actually
due, and that taxpayer shall be liable for penalties and
interest on such difference.
    If a retailer of motor fuel is entitled to a credit under
Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue
realized for the preceding month from the 1% tax imposed under
this Act on sales of food for human consumption which is to be
consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks and food which has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, products
classified as Class III medical devices by the United States
Food and Drug Administration that are used for cancer treatment
pursuant to a prescription, as well as any accessories and
components related to those devices, and insulin, urine testing
materials, syringes and needles used by diabetics.
    Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate.
    Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. Beginning
September 1, 2010, each month the Department shall pay into the
County and Mass Transit District Fund 20% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of sales tax holiday items.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property.
    Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. Beginning September 1,
2010, each month the Department shall pay into the Local
Government Tax Fund 80% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of
sales tax holiday items.
    Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
    Beginning July 1, 2011, each month the Department shall pay
into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of sorbents used in Illinois in the process
of sorbent injection as used to comply with the Environmental
Protection Act or the federal Clean Air Act, but the total
payment into the Clean Air Act Permit Fund under this Act and
the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
    Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Service Occupation Tax Act an amount equal to the
average monthly deficit in the Underground Storage Tank Fund
during the prior year, as certified annually by the Illinois
Environmental Protection Agency, but the total payment into the
Underground Storage Tank Fund under this Act, the Use Tax Act,
the Service Use Tax Act, and the Service Occupation Tax Act
shall not exceed $18,000,000 in any State fiscal year. As used
in this paragraph, the "average monthly deficit" shall be equal
to the difference between the average monthly claims for
payment by the fund and the average monthly revenues deposited
into the fund, excluding payments made pursuant to this
paragraph.
    Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, the Service Occupation Tax Act, and this Act, each
month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
    Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to this Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to
the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as
hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts; the
"Annual Specified Amount" means the amounts specified below for
fiscal years 1986 through 1993:
Fiscal YearAnnual Specified Amount
1986$54,800,000
1987$76,650,000
1988$80,480,000
1989$88,510,000
1990$115,330,000
1991$145,470,000
1992$182,730,000
1993$206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on
the last business day of any month the sum of (1) the Tax Act
Amount required to be deposited into the Build Illinois Bond
Account in the Build Illinois Fund during such month and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater of
(i) the Tax Act Amount or (ii) the Annual Specified Amount for
such fiscal year. The amounts payable into the Build Illinois
Fund under clause (b) of the first sentence in this paragraph
shall be payable only until such time as the aggregate amount
on deposit under each trust indenture securing Bonds issued and
outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and
costs payable with respect thereto, all as certified by the
Director of the Bureau of the Budget (now Governor's Office of
Management and Budget). If on the last business day of any
month in which Bonds are outstanding pursuant to the Build
Illinois Bond Act, the aggregate of moneys deposited in the
Build Illinois Bond Account in the Build Illinois Fund in such
month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build
Illinois Bond Retirement and Interest Fund pursuant to Section
13 of the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys received
by the Department pursuant to the Tax Acts to the Build
Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the first sentence of this paragraph and shall
reduce the amount otherwise payable for such fiscal year
pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
    Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098), each month, from the
collections made under Section 9 of the Use Tax Act, Section 9
of the Service Use Tax Act, Section 9 of the Service Occupation
Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year by
the Audit Bureau of the Department under the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
    Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
    The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the retailer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the retailer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The retailer's annual return to the
Department shall also disclose the cost of goods sold by the
retailer during the year covered by such return, opening and
closing inventories of such goods for such year, costs of goods
used from stock or taken from stock and given away by the
retailer during such year, payroll information of the
retailer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such retailer as provided for in
this Section.
    If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
        (i) Until January 1, 1994, the taxpayer shall be liable
    for a penalty equal to 1/6 of 1% of the tax due from such
    taxpayer under this Act during the period to be covered by
    the annual return for each month or fraction of a month
    until such return is filed as required, the penalty to be
    assessed and collected in the same manner as any other
    penalty provided for in this Act.
        (ii) On and after January 1, 1994, the taxpayer shall
    be liable for a penalty as described in Section 3-4 of the
    Uniform Penalty and Interest Act.
    The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
    The provisions of this Section concerning the filing of an
annual information return do not apply to a retailer who is not
required to file an income tax return with the United States
Government.
    As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
    For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to such
sales, if the retailers who are affected do not make written
objection to the Department to this arrangement.
    Any person who promotes, organizes, provides retail
selling space for concessionaires or other types of sellers at
the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets and similar exhibitions or
events, including any transient merchant as defined by Section
2 of the Transient Merchant Act of 1987, is required to file a
report with the Department providing the name of the merchant's
business, the name of the person or persons engaged in
merchant's business, the permanent address and Illinois
Retailers Occupation Tax Registration Number of the merchant,
the dates and location of the event and other reasonable
information that the Department may require. The report must be
filed not later than the 20th day of the month next following
the month during which the event with retail sales was held.
Any person who fails to file a report required by this Section
commits a business offense and is subject to a fine not to
exceed $250.
    Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art shows,
flea markets and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report of
the amount of such sales to the Department and to make a daily
payment of the full amount of tax due. The Department shall
impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on evidence
that a substantial number of concessionaires or other sellers
who are not residents of Illinois will be engaging in the
business of selling tangible personal property at retail at the
exhibition or event, or other evidence of a significant risk of
loss of revenue to the State. The Department shall notify
concessionaires and other sellers affected by the imposition of
this requirement. In the absence of notification by the
Department, the concessionaires and other sellers shall file
their returns as otherwise required in this Section.
(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
99-933, eff. 1-27-17; 100-303, eff. 8-24-17.)
 
    (Text of Section after amendment by P.A. 100-363)
    Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person engaged
in the business of selling tangible personal property at retail
in this State during the preceding calendar month shall file a
return with the Department, stating:
        1. The name of the seller;
        2. His residence address and the address of his
    principal place of business and the address of the
    principal place of business (if that is a different
    address) from which he engages in the business of selling
    tangible personal property at retail in this State;
        3. Total amount of receipts received by him during the
    preceding calendar month or quarter, as the case may be,
    from sales of tangible personal property, and from services
    furnished, by him during such preceding calendar month or
    quarter;
        4. Total amount received by him during the preceding
    calendar month or quarter on charge and time sales of
    tangible personal property, and from services furnished,
    by him prior to the month or quarter for which the return
    is filed;
        5. Deductions allowed by law;
        6. Gross receipts which were received by him during the
    preceding calendar month or quarter and upon the basis of
    which the tax is imposed;
        7. The amount of credit provided in Section 2d of this
    Act;
        8. The amount of tax due;
        9. The signature of the taxpayer; and
        10. Such other reasonable information as the
    Department may require.
    On and after January 1, 2018, except for returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. Retailers who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.
    Prior to October 1, 2003, and on and after September 1,
2004 a retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's
Purchaser Credit reported on annual returns due on or after
January 1, 2005 will be disallowed for periods prior to
September 1, 2004. No Manufacturer's Purchase Credit may be
used after September 30, 2003 through August 31, 2004 to
satisfy any tax liability imposed under this Act, including any
audit liability.
    The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from
    which he engages in the business of selling tangible
    personal property at retail in this State;
        3. The total amount of taxable receipts received by him
    during the preceding calendar month from sales of tangible
    personal property by him during such preceding calendar
    month, including receipts from charge and time sales, but
    less all deductions allowed by law;
        4. The amount of credit provided in Section 2d of this
    Act;
        5. The amount of tax due; and
        6. Such other reasonable information as the Department
    may require.
    Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,
as defined in the Liquor Control Act of 1934, but is engaged in
the business of selling, at retail, alcoholic liquor shall file
a statement with the Department of Revenue, in a format and at
a time prescribed by the Department, showing the total amount
paid for alcoholic liquor purchased during the preceding month
and such other information as is reasonably required by the
Department. The Department may adopt rules to require that this
statement be filed in an electronic or telephonic format. Such
rules may provide for exceptions from the filing requirements
of this paragraph. For the purposes of this paragraph, the term
"alcoholic liquor" shall have the meaning prescribed in the
Liquor Control Act of 1934.
    Beginning on October 1, 2003, every distributor, importing
distributor, and manufacturer of alcoholic liquor as defined in
the Liquor Control Act of 1934, shall file a statement with the
Department of Revenue, no later than the 10th day of the month
for the preceding month during which transactions occurred, by
electronic means, showing the total amount of gross receipts
from the sale of alcoholic liquor sold or distributed during
the preceding month to purchasers; identifying the purchaser to
whom it was sold or distributed; the purchaser's tax
registration number; and such other information reasonably
required by the Department. A distributor, importing
distributor, or manufacturer of alcoholic liquor must
personally deliver, mail, or provide by electronic means to
each retailer listed on the monthly statement a report
containing a cumulative total of that distributor's, importing
distributor's, or manufacturer's total sales of alcoholic
liquor to that retailer no later than the 10th day of the month
for the preceding month during which the transaction occurred.
The distributor, importing distributor, or manufacturer shall
notify the retailer as to the method by which the distributor,
importing distributor, or manufacturer will provide the sales
information. If the retailer is unable to receive the sales
information by electronic means, the distributor, importing
distributor, or manufacturer shall furnish the sales
information by personal delivery or by mail. For purposes of
this paragraph, the term "electronic means" includes, but is
not limited to, the use of a secure Internet website, e-mail,
or facsimile.
    If a total amount of less than $1 is payable, refundable or
creditable, such amount shall be disregarded if it is less than
50 cents and shall be increased to $1 if it is 50 cents or more.
    Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" shall be the sum of
the taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
    Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
    All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
    Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount in any case where the fractional part of a
dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
    If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
    If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
    Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
    Where the same person has more than one business registered
with the Department under separate registrations under this
Act, such person may not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
    In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle
retailer or trailer retailer for the purpose of resale or (ii)
a retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle, or
trailer to a purchaser for use as a qualifying rolling stock as
provided in Section 2-5 of this Act, then that seller may
report the transfer of all aircraft, watercraft, motor vehicles
or trailers involved in that transaction to the Department on
the same uniform invoice-transaction reporting return form.
For purposes of this Section, "watercraft" means a Class 2,
Class 3, or Class 4 watercraft as defined in Section 3-2 of the
Boat Registration and Safety Act, a personal watercraft, or any
boat equipped with an inboard motor.
    In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting the
transfer of all the aircraft, watercraft, motor vehicles, or
trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
    Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation tax
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise required
to file monthly or quarterly returns, need not file monthly or
quarterly returns. However, those retailers shall be required
to file returns on an annual basis.
    The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with an
agency of this State, shall be the same document as the Uniform
Invoice referred to in Section 5-402 of The Illinois Vehicle
Code and must show the name and address of the seller; the name
and address of the purchaser; the amount of the selling price
including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 1 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the retailer with respect to such transaction; the
amount of tax collected from the purchaser by the retailer on
such transaction (or satisfactory evidence that such tax is not
due in that particular instance, if that is claimed to be the
fact); the place and date of the sale; a sufficient
identification of the property sold; such other information as
is required in Section 5-402 of The Illinois Vehicle Code, and
such other information as the Department may reasonably
require.
    The transaction reporting return in the case of watercraft
or aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling price;
the amount of tax due from the retailer with respect to such
transaction; the amount of tax collected from the purchaser by
the retailer on such transaction (or satisfactory evidence that
such tax is not due in that particular instance, if that is
claimed to be the fact); the place and date of the sale, a
sufficient identification of the property sold, and such other
information as the Department may reasonably require.
    Such transaction reporting return shall be filed not later
than 20 days after the day of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the
Illinois use tax may be transmitted to the Department by way of
the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if
titling or registration is required) if the Department and such
agency or State officer determine that this procedure will
expedite the processing of applications for title or
registration.
    With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a use tax
receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such
purchaser may submit to the agency with which, or State officer
with whom, he must title or register the tangible personal
property that is involved (if titling or registration is
required) in support of such purchaser's application for an
Illinois certificate or other evidence of title or registration
to such tangible personal property.
    No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
    If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment of
the tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
    Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case
may be, in case the seller had theretofore included the
receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
    Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary or treasurer or by the properly
accredited agent of such corporation.
    Where the seller is a limited liability company, the return
filed on behalf of the limited liability company shall be
signed by a manager, member, or properly accredited agent of
the limited liability company.
    Except as provided in this Section, the retailer filing the
return under this Section shall, at the time of filing such
return, pay to the Department the amount of tax imposed by this
Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
on and after January 1, 1990, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. Any prepayment made pursuant
to Section 2d of this Act shall be included in the amount on
which such 2.1% or 1.75% discount is computed. In the case of
retailers who report and pay the tax on a transaction by
transaction basis, as provided in this Section, such discount
shall be taken with each such tax remittance instead of when
such retailer files his periodic return. The discount allowed
under this Section is allowed only for returns that are filed
in the manner required by this Act. The Department may disallow
the discount for retailers whose certificate of registration is
revoked at the time the return is filed, but only if the
Department's decision to revoke the certificate of
registration has become final.
    Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was $10,000
or more during the preceding 4 complete calendar quarters, he
shall file a return with the Department each month by the 20th
day of the month next following the month during which such tax
liability is incurred and shall make payments to the Department
on or before the 7th, 15th, 22nd and last day of the month
during which such liability is incurred. On and after October
1, 2000, if the taxpayer's average monthly tax liability to the
Department under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Service Use Tax Act, excluding any
liability for prepaid sales tax to be remitted in accordance
with Section 2d of this Act, was $20,000 or more during the
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the 20th day of the month
next following the month during which such tax liability is
incurred and shall make payment to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such
liability is incurred. If the month during which such tax
liability is incurred began prior to January 1, 1985, each
payment shall be in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the
Department not to exceed 1/4 of the average monthly liability
of the taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability and
the month of lowest liability in such 4 quarter period). If the
month during which such tax liability is incurred begins on or
after January 1, 1985 and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 27.5% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1987 and prior to January 1, 1988, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or
begins on or after January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during which
such tax liability is incurred begins on or after January 1,
1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. Before October 1, 2000, once applicable, the
requirement of the making of quarter monthly payments to the
Department by taxpayers having an average monthly tax liability
of $10,000 or more as determined in the manner provided above
shall continue until such taxpayer's average monthly liability
to the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status. On
and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $20,000 or
more as determined in the manner provided above shall continue
until such taxpayer's average monthly liability to the
Department during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of
lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarter period is less than $20,000. However, if a taxpayer can
show the Department that a substantial change in the taxpayer's
business has occurred which causes the taxpayer to anticipate
that his average monthly tax liability for the reasonably
foreseeable future will fall below the $20,000 threshold stated
above, then such taxpayer may petition the Department for a
change in such taxpayer's reporting status. The Department
shall change such taxpayer's reporting status unless it finds
that such change is seasonal in nature and not likely to be
long term. If any such quarter monthly payment is not paid at
the time or in the amount required by this Section, then the
taxpayer shall be liable for penalties and interest on the
difference between the minimum amount due as a payment and the
amount of such quarter monthly payment actually and timely
paid, except insofar as the taxpayer has previously made
payments for that month to the Department in excess of the
minimum payments previously due as provided in this Section.
The Department shall make reasonable rules and regulations to
govern the quarter monthly payment amount and quarter monthly
payment dates for taxpayers who file on other than a calendar
monthly basis.
    The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average in
excess of $25,000 per month during the preceding 2 complete
calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which such liability is incurred. If the month
during which such tax liability is incurred began prior to
September 1, 1985 (the effective date of Public Act 84-221),
each payment shall be in an amount not less than 22.5% of the
taxpayer's actual liability under Section 2d. If the month
during which such tax liability is incurred begins on or after
January 1, 1986, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or 27.5%
of the taxpayer's liability for the same calendar month of the
preceding calendar year. If the month during which such tax
liability is incurred begins on or after January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year.
The amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month filed under this Section or Section 2f, as the case
may be. Once applicable, the requirement of the making of
quarter monthly payments to the Department pursuant to this
paragraph shall continue until such taxpayer's average monthly
prepaid tax collections during the preceding 2 complete
calendar quarters is $25,000 or less. If any such quarter
monthly payment is not paid at the time or in the amount
required, the taxpayer shall be liable for penalties and
interest on such difference, except insofar as the taxpayer has
previously made payments for that month in excess of the
minimum payments previously due.
    The provisions of this paragraph apply on and after October
1, 2001. Without regard to whether a taxpayer is required to
make quarter monthly payments as specified above, any taxpayer
who is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes that average in
excess of $20,000 per month during the preceding 4 complete
calendar quarters shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which the liability is incurred. Each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 25% of the taxpayer's liability for
the same calendar month of the preceding year. The amount of
the quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month
filed under this Section or Section 2f, as the case may be.
Once applicable, the requirement of the making of quarter
monthly payments to the Department pursuant to this paragraph
shall continue until the taxpayer's average monthly prepaid tax
collections during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of
lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarters is less than $20,000. If any such quarter monthly
payment is not paid at the time or in the amount required, the
taxpayer shall be liable for penalties and interest on such
difference, except insofar as the taxpayer has previously made
payments for that month in excess of the minimum payments
previously due.
    If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment. The
credit evidenced by such credit memorandum may be assigned by
the taxpayer to a similar taxpayer under this Act, the Use Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's 2.1%
and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
of the difference between the credit taken and that actually
due, and that taxpayer shall be liable for penalties and
interest on such difference.
    If a retailer of motor fuel is entitled to a credit under
Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue
realized for the preceding month from the 1% tax imposed under
this Act on sales of food for human consumption which is to be
consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks and food which has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, products
classified as Class III medical devices by the United States
Food and Drug Administration that are used for cancer treatment
pursuant to a prescription, as well as any accessories and
components related to those devices, and insulin, urine testing
materials, syringes and needles used by diabetics.
    Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate.
    Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. Beginning
September 1, 2010, each month the Department shall pay into the
County and Mass Transit District Fund 20% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of sales tax holiday items.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property.
    Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. Beginning September 1,
2010, each month the Department shall pay into the Local
Government Tax Fund 80% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of
sales tax holiday items.
    Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
    Beginning July 1, 2011, each month the Department shall pay
into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of sorbents used in Illinois in the process
of sorbent injection as used to comply with the Environmental
Protection Act or the federal Clean Air Act, but the total
payment into the Clean Air Act Permit Fund under this Act and
the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
    Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Service Occupation Tax Act an amount equal to the
average monthly deficit in the Underground Storage Tank Fund
during the prior year, as certified annually by the Illinois
Environmental Protection Agency, but the total payment into the
Underground Storage Tank Fund under this Act, the Use Tax Act,
the Service Use Tax Act, and the Service Occupation Tax Act
shall not exceed $18,000,000 in any State fiscal year. As used
in this paragraph, the "average monthly deficit" shall be equal
to the difference between the average monthly claims for
payment by the fund and the average monthly revenues deposited
into the fund, excluding payments made pursuant to this
paragraph.
    Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, the Service Occupation Tax Act, and this Act, each
month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
    Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to this Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to
the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as
hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts; the
"Annual Specified Amount" means the amounts specified below for
fiscal years 1986 through 1993:
Fiscal YearAnnual Specified Amount
1986$54,800,000
1987$76,650,000
1988$80,480,000
1989$88,510,000
1990$115,330,000
1991$145,470,000
1992$182,730,000
1993$206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on
the last business day of any month the sum of (1) the Tax Act
Amount required to be deposited into the Build Illinois Bond
Account in the Build Illinois Fund during such month and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater of
(i) the Tax Act Amount or (ii) the Annual Specified Amount for
such fiscal year. The amounts payable into the Build Illinois
Fund under clause (b) of the first sentence in this paragraph
shall be payable only until such time as the aggregate amount
on deposit under each trust indenture securing Bonds issued and
outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and
costs payable with respect thereto, all as certified by the
Director of the Bureau of the Budget (now Governor's Office of
Management and Budget). If on the last business day of any
month in which Bonds are outstanding pursuant to the Build
Illinois Bond Act, the aggregate of moneys deposited in the
Build Illinois Bond Account in the Build Illinois Fund in such
month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build
Illinois Bond Retirement and Interest Fund pursuant to Section
13 of the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys received
by the Department pursuant to the Tax Acts to the Build
Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the first sentence of this paragraph and shall
reduce the amount otherwise payable for such fiscal year
pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
    Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098), each month, from the
collections made under Section 9 of the Use Tax Act, Section 9
of the Service Use Tax Act, Section 9 of the Service Occupation
Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year by
the Audit Bureau of the Department under the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
    Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
beginning on July 1, 2018 the Department shall pay each month
into the Downstate Public Transportation Fund the moneys
required to be so paid under Section 2-3 of the Downstate
Public Transportation Act.
    Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
    The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the retailer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the retailer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The retailer's annual return to the
Department shall also disclose the cost of goods sold by the
retailer during the year covered by such return, opening and
closing inventories of such goods for such year, costs of goods
used from stock or taken from stock and given away by the
retailer during such year, payroll information of the
retailer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such retailer as provided for in
this Section.
    If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
        (i) Until January 1, 1994, the taxpayer shall be liable
    for a penalty equal to 1/6 of 1% of the tax due from such
    taxpayer under this Act during the period to be covered by
    the annual return for each month or fraction of a month
    until such return is filed as required, the penalty to be
    assessed and collected in the same manner as any other
    penalty provided for in this Act.
        (ii) On and after January 1, 1994, the taxpayer shall
    be liable for a penalty as described in Section 3-4 of the
    Uniform Penalty and Interest Act.
    The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
    The provisions of this Section concerning the filing of an
annual information return do not apply to a retailer who is not
required to file an income tax return with the United States
Government.
    As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
    For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to such
sales, if the retailers who are affected do not make written
objection to the Department to this arrangement.
    Any person who promotes, organizes, provides retail
selling space for concessionaires or other types of sellers at
the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets and similar exhibitions or
events, including any transient merchant as defined by Section
2 of the Transient Merchant Act of 1987, is required to file a
report with the Department providing the name of the merchant's
business, the name of the person or persons engaged in
merchant's business, the permanent address and Illinois
Retailers Occupation Tax Registration Number of the merchant,
the dates and location of the event and other reasonable
information that the Department may require. The report must be
filed not later than the 20th day of the month next following
the month during which the event with retail sales was held.
Any person who fails to file a report required by this Section
commits a business offense and is subject to a fine not to
exceed $250.
    Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art shows,
flea markets and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report of
the amount of such sales to the Department and to make a daily
payment of the full amount of tax due. The Department shall
impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on evidence
that a substantial number of concessionaires or other sellers
who are not residents of Illinois will be engaging in the
business of selling tangible personal property at retail at the
exhibition or event, or other evidence of a significant risk of
loss of revenue to the State. The Department shall notify
concessionaires and other sellers affected by the imposition of
this requirement. In the absence of notification by the
Department, the concessionaires and other sellers shall file
their returns as otherwise required in this Section.
(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
99-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.
7-1-18; revised 10-27-17.)
 
    (35 ILCS 120/5j)  (from Ch. 120, par. 444j)
    Sec. 5j. If any taxpayer, outside the usual course of his
business, sells or transfers the major part of any one or more
of (A) the stock of goods which he is engaged in the business
of selling, or (B) the furniture or fixtures, (C) the machinery
and equipment, or (D) the real property, of any business that
is subject to the provisions of this Act, the purchaser or
transferee of such asset shall, no later than 10 business days
prior to after the sale or transfer, file a notice of sale or
transfer of business assets with the Chicago office of the
Department disclosing the name and address of the seller or
transferor, the name and address of the purchaser or
transferee, the date of the sale or transfer, a copy of the
sales contract and financing agreements which shall include a
description of the property sold, the amount of the purchase
price or a statement of other consideration for the sale or
transfer, the terms for payment of the purchase price, and such
other information as the Department may reasonably require. If
the purchaser or transferee fails to file the above described
notice of sale with the Department within the prescribed time,
the purchaser or transferee shall be personally liable for the
amount owed hereunder by the seller or transferor to the
Department up to the amount of the reasonable value of the
property acquired by the purchaser or transferee. The seller or
transferor shall pay the Department the amount of tax, penalty
and interest (if any) due from him under this Act up to the
date of the payment of tax. The seller or transferor, or the
purchaser or transferee, at least 10 business days before the
date of the sale or transfer, may notify the Department of the
intended sale or transfer and request the Department to audit
the books and records of the seller or transferor, or to do
whatever else may be necessary to determine how much the seller
or transferor owes to the Department hereunder up to the date
of the sale or transfer. The Department shall take such steps
as may be appropriate to comply with such request.
    Any order issued by the Department pursuant to this Section
to withhold from the purchase price shall be issued within 10
business days after the Department receives notification of a
sale as provided in this Section. The purchaser or transferee
shall withhold such portion of the purchase price as may be
directed by the Department, but not to exceed a minimum amount
varying by type of business, as determined by the Department
pursuant to regulations, plus twice the outstanding unpaid
liabilities and twice the average liability of preceding
filings times the number of unfiled returns, to cover the
amount of all tax, penalty and interest due and unpaid by the
seller or transferor under this Act or, if the payment of money
or property is not involved, shall withhold the performance of
the condition that constitutes the consideration for the sale
or transfer. Within 60 business days after issuance of the
initial order to withhold, the Department shall provide written
notice to the purchaser or transferee of the actual amount of
all taxes, penalties and interest then due and whether or not
additional amounts may become due as a result of unfiled
returns, pending assessments and audits not completed. The
purchaser or transferee shall continue to withhold the amount
directed to be withheld by the initial order or such lesser
amount as is specified by the final withholding order or to
withhold the performance of the condition which constitutes the
consideration for the sale or transfer until the purchaser or
transferee receives from the Department a certificate showing
that such tax, penalty and interest have been paid or a
certificate from the Department showing that no tax, penalty or
interest is due from the seller or transferor under this Act.
    The purchaser or transferee is relieved of any duty to
continue to withhold from the purchase price and of any
liability for tax, penalty or interest due hereunder from the
seller or transferor if the Department fails to notify the
purchaser or transferee in the manner provided herein of the
amount to be withheld within 10 business days after the sale or
transfer has been reported to the Department or within 60
business days after issuance of the initial order to withhold,
as the case may be. The Department shall have the right to
determine amounts claimed on an estimated basis to allow for
non-filed periods, pending assessments and audits not
completed, however the purchaser or transferee shall be
personally liable only for the actual amount due when
determined.
    If the seller or transferor fails to pay the tax, penalty
and interest (if any) due from him hereunder and the Department
makes timely claim therefor against the purchaser or transferee
as hereinabove provided, then the purchaser or transferee shall
pay the amount so withheld from the purchase price to the
Department. If the purchaser or transferee fails to comply with
the requirements of this Section, the purchaser or transferee
shall be personally liable to the Department for the amount
owed hereunder by the seller or transferor to the Department up
to the amount of the reasonable value of the property acquired
by the purchaser or transferee.
    Any person who shall acquire any property or rights thereto
which, at the time of such acquisition, is subject to a valid
lien in favor of the Department shall be personally liable to
the Department for a sum equal to the amount of taxes secured
by such lien but not to exceed the reasonable value of such
property acquired by him.
(Source: P.A. 94-776, eff. 5-19-06.)
 
    Section 50. The Cigarette Machine Operators' Occupation
Tax Act is amended by changing Section 1-40 as follows:
 
    (35 ILCS 128/1-40)
    Sec. 1-40. Returns.
    (a) Cigarette machine operators shall file a return and
remit the tax imposed by Section 1-10 by the 15th day of each
month covering the preceding calendar month. Each such return
shall show: the quantity of cigarettes made or fabricated
during the period covered by the return; the beginning and
ending meter reading for each cigarette machine for the period
covered by the return; the quantity of such cigarettes sold or
otherwise disposed of during the period covered by the return;
the brand family and manufacturer and quantity of tobacco
products used to make or fabricate cigarettes by use of a
cigarette machine; the license number of each distributor from
whom tobacco products are purchased; the type and quantity of
cigarette tubes purchased for use in a cigarette machine; the
type and quantity of cigarette tubes used in a cigarette
machine; and such other information as the Department may
require. Such returns shall be filed on forms prescribed and
furnished by the Department. The Department may promulgate
rules to require that the cigarette machine operator's return
be accompanied by appropriate computer-generated magnetic
media supporting schedule data in the format required by the
Department, unless, as provided by rule, the Department grants
an exception upon petition of a cigarette machine operator.
    Cigarette machine operators shall send a copy of those
returns, together with supporting schedule data, to the
Attorney General's Office by the 15th day of each month for the
period covering the preceding calendar month.
    (b) Cigarette machine operators may take a credit against
any tax due under Section 1-10 of this Act for taxes imposed
and paid under the Tobacco Products Tax Act of 1995 on tobacco
products sold to a customer and used in a rolling machine
located at the cigarette machine operator's place of business.
To be eligible for such credit, the tobacco product must meet
the requirements of subsection (a) of Section 1-25 of this Act.
This subsection (b) is exempt from the provisions of Section
1-155 of this Act.
    (c) If any payment provided for in this Section exceeds the
cigarette machine operator's liabilities under this Act, as
shown on an original return, the cigarette machine operator may
credit such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department.
(Source: P.A. 97-688, eff. 6-14-12.)
 
    Section 55. The Cigarette Tax Act is amended by changing
Section 2 as follows:
 
    (35 ILCS 130/2)  (from Ch. 120, par. 453.2)
    Sec. 2. Tax imposed; rate; collection, payment, and
distribution; discount.
    (a) A tax is imposed upon any person engaged in business as
a retailer of cigarettes in this State at the rate of 5 1/2
mills per cigarette sold, or otherwise disposed of in the
course of such business in this State. In addition to any other
tax imposed by this Act, a tax is imposed upon any person
engaged in business as a retailer of cigarettes in this State
at a rate of 1/2 mill per cigarette sold or otherwise disposed
of in the course of such business in this State on and after
January 1, 1947, and shall be paid into the Metropolitan Fair
and Exposition Authority Reconstruction Fund or as otherwise
provided in Section 29. On and after December 1, 1985, in
addition to any other tax imposed by this Act, a tax is imposed
upon any person engaged in business as a retailer of cigarettes
in this State at a rate of 4 mills per cigarette sold or
otherwise disposed of in the course of such business in this
State. Of the additional tax imposed by this amendatory Act of
1985, $9,000,000 of the moneys received by the Department of
Revenue pursuant to this Act shall be paid each month into the
Common School Fund. On and after the effective date of this
amendatory Act of 1989, in addition to any other tax imposed by
this Act, a tax is imposed upon any person engaged in business
as a retailer of cigarettes at the rate of 5 mills per
cigarette sold or otherwise disposed of in the course of such
business in this State. On and after the effective date of this
amendatory Act of 1993, in addition to any other tax imposed by
this Act, a tax is imposed upon any person engaged in business
as a retailer of cigarettes at the rate of 7 mills per
cigarette sold or otherwise disposed of in the course of such
business in this State. On and after December 15, 1997, in
addition to any other tax imposed by this Act, a tax is imposed
upon any person engaged in business as a retailer of cigarettes
at the rate of 7 mills per cigarette sold or otherwise disposed
of in the course of such business of this State. All of the
moneys received by the Department of Revenue pursuant to this
Act and the Cigarette Use Tax Act from the additional taxes
imposed by this amendatory Act of 1997, shall be paid each
month into the Common School Fund. On and after July 1, 2002,
in addition to any other tax imposed by this Act, a tax is
imposed upon any person engaged in business as a retailer of
cigarettes at the rate of 20.0 mills per cigarette sold or
otherwise disposed of in the course of such business in this
State. Beginning on June 24, 2012, in addition to any other tax
imposed by this Act, a tax is imposed upon any person engaged
in business as a retailer of cigarettes at the rate of 50 mills
per cigarette sold or otherwise disposed of in the course of
such business in this State. All moneys received by the
Department of Revenue under this Act and the Cigarette Use Tax
Act from the additional taxes imposed by this amendatory Act of
the 97th General Assembly shall be paid each month into the
Healthcare Provider Relief Fund. The payment of such taxes
shall be evidenced by a stamp affixed to each original package
of cigarettes, or an authorized substitute for such stamp
imprinted on each original package of such cigarettes
underneath the sealed transparent outside wrapper of such
original package, as hereinafter provided. However, such taxes
are not imposed upon any activity in such business in
interstate commerce or otherwise, which activity may not under
the Constitution and statutes of the United States be made the
subject of taxation by this State.
    Beginning on the effective date of this amendatory Act of
the 92nd General Assembly and through June 30, 2006, all of the
moneys received by the Department of Revenue pursuant to this
Act and the Cigarette Use Tax Act, other than the moneys that
are dedicated to the Common School Fund, shall be distributed
each month as follows: first, there shall be paid into the
General Revenue Fund an amount which, when added to the amount
paid into the Common School Fund for that month, equals
$33,300,000, except that in the month of August of 2004, this
amount shall equal $83,300,000; then, from the moneys
remaining, if any amounts required to be paid into the General
Revenue Fund in previous months remain unpaid, those amounts
shall be paid into the General Revenue Fund; then, beginning on
April 1, 2003, from the moneys remaining, $5,000,000 per month
shall be paid into the School Infrastructure Fund; then, if any
amounts required to be paid into the School Infrastructure Fund
in previous months remain unpaid, those amounts shall be paid
into the School Infrastructure Fund; then the moneys remaining,
if any, shall be paid into the Long-Term Care Provider Fund. To
the extent that more than $25,000,000 has been paid into the
General Revenue Fund and Common School Fund per month for the
period of July 1, 1993 through the effective date of this
amendatory Act of 1994 from combined receipts of the Cigarette
Tax Act and the Cigarette Use Tax Act, notwithstanding the
distribution provided in this Section, the Department of
Revenue is hereby directed to adjust the distribution provided
in this Section to increase the next monthly payments to the
Long Term Care Provider Fund by the amount paid to the General
Revenue Fund and Common School Fund in excess of $25,000,000
per month and to decrease the next monthly payments to the
General Revenue Fund and Common School Fund by that same excess
amount.
    Beginning on July 1, 2006, all of the moneys received by
the Department of Revenue pursuant to this Act and the
Cigarette Use Tax Act, other than the moneys that are dedicated
to the Common School Fund and, beginning on the effective date
of this amendatory Act of the 97th General Assembly, other than
the moneys from the additional taxes imposed by this amendatory
Act of the 97th General Assembly that must be paid each month
into the Healthcare Provider Relief Fund, shall be distributed
each month as follows: first, there shall be paid into the
General Revenue Fund an amount that, when added to the amount
paid into the Common School Fund for that month, equals
$29,200,000; then, from the moneys remaining, if any amounts
required to be paid into the General Revenue Fund in previous
months remain unpaid, those amounts shall be paid into the
General Revenue Fund; then from the moneys remaining,
$5,000,000 per month shall be paid into the School
Infrastructure Fund; then, if any amounts required to be paid
into the School Infrastructure Fund in previous months remain
unpaid, those amounts shall be paid into the School
Infrastructure Fund; then the moneys remaining, if any, shall
be paid into the Long-Term Care Provider Fund.
    Moneys collected from the tax imposed on little cigars
under Section 10-10 of the Tobacco Products Tax Act of 1995
shall be included with the moneys collected under the Cigarette
Tax Act and the Cigarette Use Tax Act when making distributions
to the Common School Fund, the Healthcare Provider Relief Fund,
the General Revenue Fund, the School Infrastructure Fund, and
the Long-Term Care Provider Fund under this Section.
    When any tax imposed herein terminates or has terminated,
distributors who have bought stamps while such tax was in
effect and who therefore paid such tax, but who can show, to
the Department's satisfaction, that they sold the cigarettes to
which they affixed such stamps after such tax had terminated
and did not recover the tax or its equivalent from purchasers,
shall be allowed by the Department to take credit for such
absorbed tax against subsequent tax stamp purchases from the
Department by such distributor.
    The impact of the tax levied by this Act is imposed upon
the retailer and shall be prepaid or pre-collected by the
distributor for the purpose of convenience and facility only,
and the amount of the tax shall be added to the price of the
cigarettes sold by such distributor. Collection of the tax
shall be evidenced by a stamp or stamps affixed to each
original package of cigarettes, as hereinafter provided. Any
distributor who purchases stamps may credit any excess payments
verified by the Department against amounts subsequently due for
the purchase of additional stamps, until such time as no excess
payment remains.
    Each distributor shall collect the tax from the retailer at
or before the time of the sale, shall affix the stamps as
hereinafter required, and shall remit the tax collected from
retailers to the Department, as hereinafter provided. Any
distributor who fails to properly collect and pay the tax
imposed by this Act shall be liable for the tax. Any
distributor having cigarettes to which stamps have been affixed
in his possession for sale on the effective date of this
amendatory Act of 1989 shall not be required to pay the
additional tax imposed by this amendatory Act of 1989 on such
stamped cigarettes. Any distributor having cigarettes to which
stamps have been affixed in his or her possession for sale at
12:01 a.m. on the effective date of this amendatory Act of
1993, is required to pay the additional tax imposed by this
amendatory Act of 1993 on such stamped cigarettes. This
payment, less the discount provided in subsection (b), shall be
due when the distributor first makes a purchase of cigarette
tax stamps after the effective date of this amendatory Act of
1993, or on the first due date of a return under this Act after
the effective date of this amendatory Act of 1993, whichever
occurs first. Any distributor having cigarettes to which stamps
have been affixed in his possession for sale on December 15,
1997 shall not be required to pay the additional tax imposed by
this amendatory Act of 1997 on such stamped cigarettes.
    Any distributor having cigarettes to which stamps have been
affixed in his or her possession for sale on July 1, 2002 shall
not be required to pay the additional tax imposed by this
amendatory Act of the 92nd General Assembly on those stamped
cigarettes.
    Any retailer having cigarettes in his or her possession on
June 24, 2012 to which tax stamps have been affixed is not
required to pay the additional tax that begins on June 24, 2012
imposed by this amendatory Act of the 97th General Assembly on
those stamped cigarettes. Any distributor having cigarettes in
his or her possession on June 24, 2012 to which tax stamps have
been affixed, and any distributor having stamps in his or her
possession on June 24, 2012 that have not been affixed to
packages of cigarettes before June 24, 2012, is required to pay
the additional tax that begins on June 24, 2012 imposed by this
amendatory Act of the 97th General Assembly to the extent the
calendar year 2012 average monthly volume of cigarette stamps
in the distributor's possession exceeds the average monthly
volume of cigarette stamps purchased by the distributor in
calendar year 2011. This payment, less the discount provided in
subsection (b), is due when the distributor first makes a
purchase of cigarette stamps on or after June 24, 2012 or on
the first due date of a return under this Act occurring on or
after June 24, 2012, whichever occurs first. Those distributors
may elect to pay the additional tax on packages of cigarettes
to which stamps have been affixed and on any stamps in the
distributor's possession that have not been affixed to packages
of cigarettes over a period not to exceed 12 months from the
due date of the additional tax by notifying the Department in
writing. The first payment for distributors making such
election is due when the distributor first makes a purchase of
cigarette tax stamps on or after June 24, 2012 or on the first
due date of a return under this Act occurring on or after June
24, 2012, whichever occurs first. Distributors making such an
election are not entitled to take the discount provided in
subsection (b) on such payments.
    Distributors making sales of cigarettes to secondary
distributors shall add the amount of the tax to the price of
the cigarettes sold by the distributors. Secondary
distributors making sales of cigarettes to retailers shall
include the amount of the tax in the price of the cigarettes
sold to retailers. The amount of tax shall not be less than the
amount of taxes imposed by the State and all local
jurisdictions. The amount of local taxes shall be calculated
based on the location of the retailer's place of business shown
on the retailer's certificate of registration or
sub-registration issued to the retailer pursuant to Section 2a
of the Retailers' Occupation Tax Act. The original packages of
cigarettes sold to the retailer shall bear all the required
stamps, or other indicia, for the taxes included in the price
of cigarettes.
    The amount of the Cigarette Tax imposed by this Act shall
be separately stated, apart from the price of the goods, by
distributors, manufacturer representatives, secondary
distributors, and retailers, in all bills and sales invoices.
    (b) The distributor shall be required to collect the taxes
provided under paragraph (a) hereof, and, to cover the costs of
such collection, shall be allowed a discount during any year
commencing July 1st and ending the following June 30th in
accordance with the schedule set out hereinbelow, which
discount shall be allowed at the time of purchase of the stamps
when purchase is required by this Act, or at the time when the
tax is remitted to the Department without the purchase of
stamps from the Department when that method of paying the tax
is required or authorized by this Act. Prior to December 1,
1985, a discount equal to 1 2/3% of the amount of the tax up to
and including the first $700,000 paid hereunder by such
distributor to the Department during any such year; 1 1/3% of
the next $700,000 of tax or any part thereof, paid hereunder by
such distributor to the Department during any such year; 1% of
the next $700,000 of tax, or any part thereof, paid hereunder
by such distributor to the Department during any such year, and
2/3 of 1% of the amount of any additional tax paid hereunder by
such distributor to the Department during any such year shall
apply. On and after December 1, 1985, a discount equal to 1.75%
of the amount of the tax payable under this Act up to and
including the first $3,000,000 paid hereunder by such
distributor to the Department during any such year and 1.5% of
the amount of any additional tax paid hereunder by such
distributor to the Department during any such year shall apply.
    Two or more distributors that use a common means of
affixing revenue tax stamps or that are owned or controlled by
the same interests shall be treated as a single distributor for
the purpose of computing the discount.
    (c) The taxes herein imposed are in addition to all other
occupation or privilege taxes imposed by the State of Illinois,
or by any political subdivision thereof, or by any municipal
corporation.
(Source: P.A. 97-587, eff. 8-26-11; 97-688, eff. 6-14-12;
98-273, eff. 8-9-13.)
 
    Section 60. The Cigarette Use Tax Act is amended by
changing Section 3 as follows:
 
    (35 ILCS 135/3)  (from Ch. 120, par. 453.33)
    Sec. 3. Stamp payment. The tax hereby imposed shall be
collected by a distributor maintaining a place of business in
this State or a distributor authorized by the Department
pursuant to Section 7 hereof to collect the tax, and the amount
of the tax shall be added to the price of the cigarettes sold
by such distributor. Collection of the tax shall be evidenced
by a stamp or stamps affixed to each original package of
cigarettes or by an authorized substitute for such stamp
imprinted on each original package of such cigarettes
underneath the sealed transparent outside wrapper of such
original package, except as hereinafter provided. Each
distributor who is required or authorized to collect the tax
herein imposed, before delivering or causing to be delivered
any original packages of cigarettes in this State to any
purchaser, shall firmly affix a proper stamp or stamps to each
such package, or (in the case of manufacturers of cigarettes in
original packages which are contained inside a sealed
transparent wrapper) shall imprint the required language on the
original package of cigarettes beneath such outside wrapper as
hereinafter provided. Such stamp or stamps need not be affixed
to the original package of any cigarettes with respect to which
the distributor is required to affix a like stamp or stamps by
virtue of the Cigarette Tax Act, however, and no tax imprint
need be placed underneath the sealed transparent wrapper of an
original package of cigarettes with respect to which the
distributor is required or authorized to employ a like tax
imprint by virtue of the Cigarette Tax Act. Any distributor who
purchases stamps may credit any excess payments verified by the
Department against amounts subsequently due for the purchase of
additional stamps, until such time as no excess payment
remains.
    No stamp or imprint may be affixed to, or made upon, any
package of cigarettes unless that package complies with all
requirements of the federal Cigarette Labeling and Advertising
Act, 15 U.S.C. 1331 and following, for the placement of labels,
warnings, or any other information upon a package of cigarettes
that is sold within the United States. Under the authority of
Section 6, the Department shall revoke the license of any
distributor that is determined to have violated this paragraph.
A person may not affix a stamp on a package of cigarettes,
cigarette papers, wrappers, or tubes if that individual package
has been marked for export outside the United States with a
label or notice in compliance with Section 290.185 of Title 27
of the Code of Federal Regulations. It is not a defense to a
proceeding for violation of this paragraph that the label or
notice has been removed, mutilated, obliterated, or altered in
any manner.
    Only distributors licensed under this Act and
transporters, as defined in Section 9c of the Cigarette Tax
Act, may possess unstamped original packages of cigarettes.
Prior to shipment to an Illinois retailer or secondary
distributor, a stamp shall be applied to each original package
of cigarettes sold to the retailer or secondary distributor. A
distributor may apply a tax stamp only to an original package
of cigarettes purchased or obtained directly from an in-state
maker, manufacturer, or fabricator licensed as a distributor
under Section 4 of this Act or an out-of-state maker,
manufacturer, or fabricator holding a permit under Section 7 of
this Act. A licensed distributor may ship or otherwise cause to
be delivered unstamped original packages of cigarettes in,
into, or from this State. A licensed distributor may transport
unstamped original packages of cigarettes to a facility,
wherever located, owned or controlled by such distributor;
however, a distributor may not transport unstamped original
packages of cigarettes to a facility where retail sales of
cigarettes take place or to a facility where a secondary
distributor makes sales for resale. Any licensed distributor
that ships or otherwise causes to be delivered unstamped
original packages of cigarettes into, within, or from this
State shall ensure that the invoice or equivalent documentation
and the bill of lading or freight bill for the shipment
identifies the true name and address of the consignor or
seller, the true name and address of the consignee or
purchaser, and the quantity by brand style of the cigarettes so
transported, provided that this Section shall not be construed
as to impose any requirement or liability upon any common or
contract carrier.
    Distributors making sales of cigarettes to secondary
distributors shall add the amount of the tax to the price of
the cigarettes sold by the distributors. Secondary
distributors making sales of cigarettes to retailers shall
include the amount of the tax in the price of the cigarettes
sold to retailers. The amount of tax shall not be less than the
amount of taxes imposed by the State and all local
jurisdictions. The amount of local taxes shall be calculated
based on the location of the retailer's place of business shown
on the retailer's certificate of registration or
sub-registration issued to the retailer pursuant to Section 2a
of the Retailers' Occupation Tax Act. The original packages of
cigarettes sold by the retailer shall bear all the required
stamps, or other indicia, for the taxes included in the price
of cigarettes.
    Stamps, when required hereunder, shall be purchased from
the Department, or any person authorized by the Department, by
distributors. On and after July 1, 2003, payment for such
stamps must be made by means of electronic funds transfer. The
Department may refuse to sell stamps to any person who does not
comply with the provisions of this Act. Beginning on June 6,
2002 and through June 30, 2002, persons holding valid licenses
as distributors may purchase cigarette tax stamps up to an
amount equal to 115% of the distributor's average monthly
cigarette tax stamp purchases over the 12 calendar months prior
to June 6, 2002.
    Prior to December 1, 1985, the Department shall allow a
distributor 21 days in which to make final payment of the
amount to be paid for such stamps, by allowing the distributor
to make payment for the stamps at the time of purchasing them
with a draft which shall be in such form as the Department
prescribes, and which shall be payable within 21 days
thereafter: Provided that such distributor has filed with the
Department, and has received the Department's approval of, a
bond, which is in addition to the bond required under Section 4
of this Act, payable to the Department in an amount equal to
80% of such distributor's average monthly tax liability to the
Department under this Act during the preceding calendar year or
$500,000, whichever is less. The bond shall be joint and
several and shall be in the form of a surety company bond in
such form as the Department prescribes, or it may be in the
form of a bank certificate of deposit or bank letter of credit.
The bond shall be conditioned upon the distributor's payment of
the amount of any 21-day draft which the Department accepts
from that distributor for the delivery of stamps to that
distributor under this Act. The distributor's failure to pay
any such draft, when due, shall also make such distributor
automatically liable to the Department for a penalty equal to
25% of the amount of such draft.
    On and after December 1, 1985 and until July 1, 2003, the
Department shall allow a distributor 30 days in which to make
final payment of the amount to be paid for such stamps, by
allowing the distributor to make payment for the stamps at the
time of purchasing them with a draft which shall be in such
form as the Department prescribes, and which shall be payable
within 30 days thereafter, and beginning on January 1, 2003 and
thereafter, the draft shall be payable by means of electronic
funds transfer: Provided that such distributor has filed with
the Department, and has received the Department's approval of,
a bond, which is in addition to the bond required under Section
4 of this Act, payable to the Department in an amount equal to
150% of such distributor's average monthly tax liability to the
Department under this Act during the preceding calendar year or
$750,000, whichever is less, except that as to bonds filed on
or after January 1, 1987, such additional bond shall be in an
amount equal to 100% of such distributor's average monthly tax
liability under this Act during the preceding calendar year or
$750,000, whichever is less. The bond shall be joint and
several and shall be in the form of a surety company bond in
such form as the Department prescribes, or it may be in the
form of a bank certificate of deposit or bank letter of credit.
The bond shall be conditioned upon the distributor's payment of
the amount of any 30-day draft which the Department accepts
from that distributor for the delivery of stamps to that
distributor under this Act. The distributor's failure to pay
any such draft, when due, shall also make such distributor
automatically liable to the Department for a penalty equal to
25% of the amount of such draft.
    Every prior continuous compliance taxpayer shall be exempt
from all requirements under this Section concerning the
furnishing of such bond, as defined in this Section, as a
condition precedent to his being authorized to engage in the
business licensed under this Act. This exemption shall continue
for each such taxpayer until such time as he may be determined
by the Department to be delinquent in the filing of any
returns, or is determined by the Department (either through the
Department's issuance of a final assessment which has become
final under the Act, or by the taxpayer's filing of a return
which admits tax to be due that is not paid) to be delinquent
or deficient in the paying of any tax under this Act, at which
time that taxpayer shall become subject to the bond
requirements of this Section and, as a condition of being
allowed to continue to engage in the business licensed under
this Act, shall be required to furnish bond to the Department
in such form as provided in this Section. Such taxpayer shall
furnish such bond for a period of 2 years, after which, if the
taxpayer has not been delinquent in the filing of any returns,
or delinquent or deficient in the paying of any tax under this
Act, the Department may reinstate such person as a prior
continuance compliance taxpayer. Any taxpayer who fails to pay
an admitted or established liability under this Act may also be
required to post bond or other acceptable security with the
Department guaranteeing the payment of such admitted or
established liability.
    Except as otherwise provided in this Section, any person
aggrieved by any decision of the Department under this Section
may, within the time allowed by law, protest and request a
hearing before the Department, whereupon the Department shall
give notice and shall hold a hearing in conformity with the
provisions of this Act and then issue its final administrative
decision in the matter to such person. Effective July 1, 2013,
protests concerning matters that are subject to the
jurisdiction of the Illinois Independent Tax Tribunal shall be
filed in accordance with the Illinois Independent Tax Tribunal
Act of 2012, and hearings concerning those matters shall be
held before the Tribunal in accordance with that Act. With
respect to protests filed with the Department prior to July 1,
2013 that would otherwise be subject to the jurisdiction of the
Illinois Independent Tax Tribunal, the person filing the
protest may elect to be subject to the provisions of the
Illinois Independent Tax Tribunal Act of 2012 at any time on or
after July 1, 2013, but not later than 30 days after the date
on which the protest was filed. If made, the election shall be
irrevocable. In the absence of such a protest filed within the
time allowed by law, the Department's decision shall become
final without any further determination being made or notice
given.
    The Department shall discharge any surety and shall release
and return any bond or security deposited, assigned, pledged,
or otherwise provided to it by a taxpayer under this Section
within 30 days after:
        (1) such Taxpayer becomes a prior continuous
    compliance taxpayer; or
        (2) such taxpayer has ceased to collect receipts on
    which he is required to remit tax to the Department, has
    filed a final tax return, and has paid to the Department an
    amount sufficient to discharge his remaining tax liability
    as determined by the Department under this Act. The
    Department shall make a final determination of the
    taxpayer's outstanding tax liability as expeditiously as
    possible after his final tax return has been filed. If the
    Department cannot make such final determination within 45
    days after receiving the final tax return, within such
    period it shall so notify the taxpayer, stating its reasons
    therefor.
    At the time of purchasing such stamps from the Department
when purchase is required by this Act, or at the time when the
tax which he has collected is remitted by a distributor to the
Department without the purchase of stamps from the Department
when that method of remitting the tax that has been collected
is required or authorized by this Act, the distributor shall be
allowed a discount during any year commencing July 1 and ending
the following June 30 in accordance with the schedule set out
hereinbelow, from the amount to be paid by him to the
Department for such stamps, or to be paid by him to the
Department on the basis of monthly remittances (as the case may
be), to cover the cost, to such distributor, of collecting the
tax herein imposed by affixing such stamps to the original
packages of cigarettes sold by such distributor or by placing
tax imprints underneath the sealed transparent wrapper of
original packages of cigarettes sold by such distributor (as
the case may be): (1) Prior to December 1, 1985, a discount
equal to 1-2/3% of the amount of the tax up to and including
the first $700,000 paid hereunder by such distributor to the
Department during any such year; 1-1/3% of the next $700,000 of
tax or any part thereof, paid hereunder by such distributor to
the Department during any such year; 1% of the next $700,000 of
tax, or any part thereof, paid hereunder by such distributor to
the Department during any such year; and 2/3 of 1% of the
amount of any additional tax paid hereunder by such distributor
to the Department during any such year or (2) On and after
December 1, 1985, a discount equal to 1.75% of the amount of
the tax payable under this Act up to and including the first
$3,000,000 paid hereunder by such distributor to the Department
during any such year and 1.5% of the amount of any additional
tax paid hereunder by such distributor to the Department during
any such year.
    Two or more distributors that use a common means of
affixing revenue tax stamps or that are owned or controlled by
the same interests shall be treated as a single distributor for
the purpose of computing the discount.
    Cigarette manufacturers who are distributors under Section
7(a) of this Act, and who place their cigarettes in original
packages which are contained inside a sealed transparent
wrapper, shall be required to remit the tax which they are
required to collect under this Act to the Department by
remitting the amount thereof to the Department by the 5th day
of each month, covering cigarettes shipped or otherwise
delivered to points in Illinois to purchasers during the
preceding calendar month, but a distributor need not remit to
the Department the tax so collected by him from purchasers
under this Act to the extent to which such distributor is
required to remit the tax imposed by the Cigarette Tax Act to
the Department with respect to the same cigarettes. All taxes
upon cigarettes under this Act are a direct tax upon the retail
consumer and shall conclusively be presumed to be precollected
for the purpose of convenience and facility only. Cigarette
manufacturers that are distributors licensed under Section
7(a) of this Act and who place their cigarettes in original
packages which are contained inside a sealed transparent
wrapper, before delivering such cigarettes or causing such
cigarettes to be delivered in this State to purchasers, shall
evidence their obligation to collect and remit the tax due with
respect to such cigarettes by imprinting language to be
prescribed by the Department on each original package of such
cigarettes underneath the sealed transparent outside wrapper
of such original package, in such place thereon and in such
manner as the Department may prescribe; provided (as stated
hereinbefore) that this requirement does not apply when such
distributor is required or authorized by the Cigarette Tax Act
to place the tax imprint provided for in the last paragraph of
Section 3 of that Act underneath the sealed transparent wrapper
of such original package of cigarettes. Such imprinted language
shall acknowledge the manufacturer's collection and payment of
or liability for the tax imposed by this Act with respect to
such cigarettes.
    The Department shall adopt the design or designs of the tax
stamps and shall procure the printing of such stamps in such
amounts and denominations as it deems necessary to provide for
the affixation of the proper amount of tax stamps to each
original package of cigarettes.
    Where tax stamps are required, the Department may authorize
distributors to affix revenue tax stamps by imprinting tax
meter stamps upon original packages of cigarettes. The
Department shall adopt rules and regulations relating to the
imprinting of such tax meter stamps as will result in payment
of the proper taxes as herein imposed. No distributor may affix
revenue tax stamps to original packages of cigarettes by
imprinting meter stamps thereon unless such distributor has
first obtained permission from the Department to employ this
method of affixation. The Department shall regulate the use of
tax meters and may, to assure the proper collection of the
taxes imposed by this Act, revoke or suspend the privilege,
theretofore granted by the Department to any distributor, to
imprint tax meter stamps upon original packages of cigarettes.
    The tax hereby imposed and not paid pursuant to this
Section shall be paid to the Department directly by any person
using such cigarettes within this State, pursuant to Section 12
hereof.
    A distributor shall not affix, or cause to be affixed, any
stamp or imprint to a package of cigarettes, as provided for in
this Section, if the tobacco product manufacturer, as defined
in Section 10 of the Tobacco Product Manufacturers' Escrow Act,
that made or sold the cigarettes has failed to become a
participating manufacturer, as defined in subdivision (a)(1)
of Section 15 of the Tobacco Product Manufacturers' Escrow Act,
or has failed to create a qualified escrow fund for any
cigarettes manufactured by the tobacco product manufacturer
and sold in this State or otherwise failed to bring itself into
compliance with subdivision (a)(2) of Section 15 of the Tobacco
Product Manufacturers' Escrow Act.
(Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10;
97-1129, eff. 8-28-12.)
 
    Section 65. The Tobacco Products Tax Act of 1995 is amended
by changing Section 10-30 as follows:
 
    (35 ILCS 143/10-30)
    Sec. 10-30. Returns.
    (a) Every distributor shall, on or before the 15th day of
each month, file a return with the Department covering the
preceding calendar month. The return shall disclose the
wholesale price for all tobacco products other than moist snuff
and the quantity in ounces of moist snuff sold or otherwise
disposed of and other information that the Department may
reasonably require. The return shall be filed upon a form
prescribed and furnished by the Department.
    (b) In addition to the information required under
subsection (a), on or before the 15th day of each month,
covering the preceding calendar month, each stamping
distributor shall, on forms prescribed and furnished by the
Department, report the quantity of little cigars sold or
otherwise disposed of, including the number of packages of
little cigars sold or disposed of during the month containing
20 or 25 little cigars.
    (c) At the time when any return of any distributor is due
to be filed with the Department, the distributor shall also
remit to the Department the tax liability that the distributor
has incurred for transactions occurring in the preceding
calendar month.
    (d) The Department may adopt rules to require the
electronic filing of any return or document required to be
filed under this Act. Those rules may provide for exceptions
from the filing requirement set forth in this paragraph for
persons who demonstrate that they do not have access to the
Internet and petition the Department to waive the electronic
filing requirement.
    (e) If any payment provided for in this Section exceeds the
distributor's liabilities under this Act, as shown on an
original return, the distributor may credit such excess payment
against liability subsequently to be remitted to the Department
under this Act, in accordance with reasonable rules adopted by
the Department.
(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13.)
 
    Section 70. The Hotel Operators' Occupation Tax Act is
amended by changing Section 6 as follows:
 
    (35 ILCS 145/6)  (from Ch. 120, par. 481b.36)
    Sec. 6. Filing of returns and distribution of proceeds.
    Except as provided hereinafter in this Section, on or
before the last day of each calendar month, every person
engaged in the business of renting, leasing or letting rooms in
a hotel in this State during the preceding calendar month shall
file a return with the Department, stating:
        1. The name of the operator;
        2. His residence address and the address of his
    principal place of business and the address of the
    principal place of business (if that is a different
    address) from which he engages in the business of renting,
    leasing or letting rooms in a hotel in this State;
        3. Total amount of rental receipts received by him
    during the preceding calendar month from renting, leasing
    or letting rooms during such preceding calendar month;
        4. Total amount of rental receipts received by him
    during the preceding calendar month from renting, leasing
    or letting rooms to permanent residents during such
    preceding calendar month;
        5. Total amount of other exclusions from gross rental
    receipts allowed by this Act;
        6. Gross rental receipts which were received by him
    during the preceding calendar month and upon the basis of
    which the tax is imposed;
        7. The amount of tax due;
        8. Such other reasonable information as the Department
    may require.
    If the operator's average monthly tax liability to the
Department does not exceed $200, the Department may authorize
his returns to be filed on a quarter annual basis, with the
return for January, February and March of a given year being
due by April 30 of such year; with the return for April, May
and June of a given year being due by July 31 of such year; with
the return for July, August and September of a given year being
due by October 31 of such year, and with the return for
October, November and December of a given year being due by
January 31 of the following year.
    If the operator's average monthly tax liability to the
Department does not exceed $50, the Department may authorize
his returns to be filed on an annual basis, with the return for
a given year being due by January 31 of the following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
    Notwithstanding any other provision in this Act concerning
the time within which an operator may file his return, in the
case of any operator who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such operator shall file a final return under this Act with the
Department not more than 1 month after discontinuing such
business.
    Where the same person has more than 1 business registered
with the Department under separate registrations under this
Act, such person shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
    In his return, the operator shall determine the value of
any consideration other than money received by him in
connection with the renting, leasing or letting of rooms in the
course of his business and he shall include such value in his
return. Such determination shall be subject to review and
revision by the Department in the manner hereinafter provided
for the correction of returns.
    Where the operator is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary or treasurer or by the properly
accredited agent of such corporation.
    The person filing the return herein provided for shall, at
the time of filing such return, pay to the Department the
amount of tax herein imposed. The operator filing the return
under this Section shall, at the time of filing such return,
pay to the Department the amount of tax imposed by this Act
less a discount of 2.1% or $25 per calendar year, whichever is
greater, which is allowed to reimburse the operator for the
expenses incurred in keeping records, preparing and filing
returns, remitting the tax and supplying data to the Department
on request.
    If any payment provided for in this Section exceeds the
operator's liabilities under this Act, as shown on an original
return, the Department may authorize the operator to credit
such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department. If the Department
subsequently determines that all or any part of the credit
taken was not actually due to the operator, the operator's
discount shall be reduced by an amount equal to the difference
between the discount as applied to the credit taken and that
actually due, and that operator shall be liable for penalties
and interest on such difference.
    There shall be deposited in the Build Illinois Fund in the
State Treasury for each State fiscal year 40% of the amount of
total net proceeds from the tax imposed by subsection (a) of
Section 3. Of the remaining 60%, $5,000,000 shall be deposited
in the Illinois Sports Facilities Fund and credited to the
Subsidy Account each fiscal year by making monthly deposits in
the amount of 1/8 of $5,000,000 plus cumulative deficiencies in
such deposits for prior months, and an additional $8,000,000
shall be deposited in the Illinois Sports Facilities Fund and
credited to the Advance Account each fiscal year by making
monthly deposits in the amount of 1/8 of $8,000,000 plus any
cumulative deficiencies in such deposits for prior months;
provided, that for fiscal years ending after June 30, 2001, the
amount to be so deposited into the Illinois Sports Facilities
Fund and credited to the Advance Account each fiscal year shall
be increased from $8,000,000 to the then applicable Advance
Amount and the required monthly deposits beginning with July
2001 shall be in the amount of 1/8 of the then applicable
Advance Amount plus any cumulative deficiencies in those
deposits for prior months. (The deposits of the additional
$8,000,000 or the then applicable Advance Amount, as
applicable, during each fiscal year shall be treated as
advances of funds to the Illinois Sports Facilities Authority
for its corporate purposes to the extent paid to the Authority
or its trustee and shall be repaid into the General Revenue
Fund in the State Treasury by the State Treasurer on behalf of
the Authority pursuant to Section 19 of the Illinois Sports
Facilities Authority Act, as amended. If in any fiscal year the
full amount of the then applicable Advance Amount is not repaid
into the General Revenue Fund, then the deficiency shall be
paid from the amount in the Local Government Distributive Fund
that would otherwise be allocated to the City of Chicago under
the State Revenue Sharing Act.)
    For purposes of the foregoing paragraph, the term "Advance
Amount" means, for fiscal year 2002, $22,179,000, and for
subsequent fiscal years through fiscal year 2032, 105.615% of
the Advance Amount for the immediately preceding fiscal year,
rounded up to the nearest $1,000.
    Of the remaining 60% of the amount of total net proceeds
prior to August 1, 2011 from the tax imposed by subsection (a)
of Section 3 after all required deposits in the Illinois Sports
Facilities Fund, the amount equal to 8% of the net revenue
realized from this Act plus an amount equal to 8% of the net
revenue realized from any tax imposed under Section 4.05 of the
Chicago World's Fair-1992 Authority Act during the preceding
month shall be deposited in the Local Tourism Fund each month
for purposes authorized by Section 605-705 of the Department of
Commerce and Economic Opportunity Law (20 ILCS 605/605-705). Of
the remaining 60% of the amount of total net proceeds beginning
on August 1, 2011 from the tax imposed by subsection (a) of
Section 3 after all required deposits in the Illinois Sports
Facilities Fund, an amount equal to 8% of the net revenue
realized from this Act plus an amount equal to 8% of the net
revenue realized from any tax imposed under Section 4.05 of the
Chicago World's Fair-1992 Authority Act during the preceding
month shall be deposited as follows: 18% of such amount shall
be deposited into the Chicago Travel Industry Promotion Fund
for the purposes described in subsection (n) of Section 5 of
the Metropolitan Pier and Exposition Authority Act and the
remaining 82% of such amount shall be deposited into the Local
Tourism Fund each month for purposes authorized by Section
605-705 of the Department of Commerce and Economic Opportunity
Law. Beginning on August 1, 1999 and ending on July 31, 2011,
an amount equal to 4.5% of the net revenue realized from the
Hotel Operators' Occupation Tax Act during the preceding month
shall be deposited into the International Tourism Fund for the
purposes authorized in Section 605-707 of the Department of
Commerce and Economic Opportunity Law. Beginning on August 1,
2011, an amount equal to 4.5% of the net revenue realized from
this Act during the preceding month shall be deposited as
follows: 55% of such amount shall be deposited into the Chicago
Travel Industry Promotion Fund for the purposes described in
subsection (n) of Section 5 of the Metropolitan Pier and
Exposition Authority Act and the remaining 45% of such amount
deposited into the International Tourism Fund for the purposes
authorized in Section 605-707 of the Department of Commerce and
Economic Opportunity Law. "Net revenue realized for a month"
means the revenue collected by the State under that Act during
the previous month less the amount paid out during that same
month as refunds to taxpayers for overpayment of liability
under that Act.
    After making all these deposits, all other proceeds of the
tax imposed under subsection (a) of Section 3 shall be
deposited in the Tourism Promotion Fund in the State Treasury.
All moneys received by the Department from the additional tax
imposed under subsection (b) of Section 3 shall be deposited
into the Build Illinois Fund in the State Treasury.
    The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the operator's last State income
tax return. If the total receipts of the business as reported
in the State income tax return do not agree with the gross
receipts reported to the Department for the same period, the
operator shall attach to his annual information return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The operator's annual information
return to the Department shall also disclose pay roll
information of the operator's business during the year covered
by such return and any additional reasonable information which
the Department deems would be helpful in determining the
accuracy of the monthly, quarterly or annual tax returns by
such operator as hereinbefore provided for in this Section.
    If the annual information return required by this Section
is not filed when and as required the taxpayer shall be liable
for a penalty in an amount determined in accordance with
Section 3-4 of the Uniform Penalty and Interest Act until such
return is filed as required, the penalty to be assessed and
collected in the same manner as any other penalty provided for
in this Act.
    The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
    The foregoing portion of this Section concerning the filing
of an annual information return shall not apply to an operator
who is not required to file an income tax return with the
United States Government.
(Source: P.A. 100-23, eff. 7-6-17.)
 
    Section 75. The Live Adult Entertainment Facility
Surcharge Act is amended by changing Section 10 as follows:
 
    (35 ILCS 175/10)
    Sec. 10. Surcharge imposed; returns.
    (a) An annual surcharge is imposed upon each operator who
operates a live adult entertainment facility in this State. By
January 20, 2014, and by January 20 of each year thereafter,
each operator shall elect to pay the surcharge according to
either item (1) or item (2) of this subsection.
        (1) An operator who elects to be subject to this item
    (1) shall pay to the Department a surcharge imposed upon
    admissions to a live adult entertainment facility operated
    by the operator in this State in an amount equal to $3 per
    person admitted to that live adult entertainment facility.
    This item (1) does not require a live entertainment
    facility to impose a fee on a customer of the facility. An
    operator has the discretion to determine the manner in
    which the facility derives the moneys required to pay the
    surcharge imposed under this Section. In the event that an
    operator has not filed the applicable returns under the
    Retailers' Occupation Tax Act for a full calendar year
    prior to any January 20, then such operator shall pay the
    surcharge under this Act pursuant to this item (1) for
    moneys owed to the Department subject to this Act for the
    previous calendar year.
        (2) An operator may, in the alternative, pay to the
    Department the surcharge as follows:
            (A) If the gross receipts received by the live
        adult entertainment facility during the preceding
        calendar year, upon the basis of which a tax is imposed
        under Section 2 of the Retailers' Occupation Tax Act,
        are equal or greater than $2,000,000 during the
        preceding calendar year, and if the operator elects to
        be subject to this item (2), then the operator shall
        pay the Department a surcharge of $25,000.
            (B) If the gross receipts received by the live
        adult entertainment facility during the preceding
        calendar year, upon the basis of which a tax is imposed
        under Section 2 of the Retailers' Occupation Tax Act,
        are equal to or greater than $500,000 but less than
        $2,000,000 during the preceding calendar year, and if
        the operator elects to be subject to this item (2),
        then the operator shall pay to the Department a
        surcharge of $15,000.
            (C) If the gross receipts received by the live
        adult entertainment facility during the preceding
        calendar year, upon the basis of which a tax is imposed
        under Section 2 of the Retailers' Occupation Tax Act,
        are less than $500,000 during the preceding calendar
        year, and if the operator elects to be subject to this
        item (2), then the operator shall pay the Department a
        surcharge of $5,000.
    (b) For each live adult entertainment facility paying the
surcharge as set forth in item (1) of subsection (a) of this
Section, the operator must file a return electronically as
provided by the Department and remit payment to the Department
on an annual basis no later than January 20 covering the
previous calendar year. Each return made to the Department must
state the following:
        (1) the name of the operator;
        (2) the address of the live adult entertainment
    facility and the address of the principal place of business
    (if that is a different address) of the operator;
        (3) the total number of admissions to the facility in
    the preceding calendar year; and
        (4) the total amount of surcharge collected in the
    preceding calendar year.