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Public Act 92-0651
SB1854 Enrolled LRB9215370EGfg
AN ACT to revise the law by combining multiple enactments
and making technical corrections.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Nature of this Act.
(a) This Act may be cited as the First 2002 General
Revisory Act.
(b) This Act is not intended to make any substantive
change in the law. It reconciles conflicts that have arisen
from multiple amendments and enactments and makes technical
corrections and revisions in the law.
This Act revises and, where appropriate, renumbers
certain Sections that have been added or amended by more than
one Public Act. In certain cases in which a repealed Act or
Section has been replaced with a successor law, this Act
incorporates amendments to the repealed Act or Section into
the successor law. This Act also corrects errors, revises
cross-references, and deletes obsolete text.
(c) In this Act, the reference at the end of each
amended Section indicates the sources in the Session Laws of
Illinois that were used in the preparation of the text of
that Section. The text of the Section included in this Act
is intended to reconcile the different versions of the
Section found in the Public Acts included in the list of
sources, but may not include other versions of the Section to
be found in Public Acts not included in the list of sources.
The list of sources is not a part of the text of the Section.
(d) Public Acts 91-937 through 92-520 were considered in
the preparation of the combining revisories included in this
Act. Many of those combining revisories contain no striking
or underscoring because no additional changes are being made
in the material that is being combined.
Section 4. The Regulatory Sunset Act is amended by
changing Sections 4.13 and 4.22 as follows:
(5 ILCS 80/4.13) (from Ch. 127, par. 1904.13)
Sec. 4.13. Acts repealed on December 31, 2002. The
following Acts are repealed on December 31, 2002:
The Environmental Health Practitioner Licensing Act.
The Naprapathic Practice Act.
The Wholesale Drug Distribution Licensing Act.
The Dietetic and Nutrition Services Practice Act.
The Funeral Directors and Embalmers Licensing Code.
The Professional Counselor and Clinical Professional
Counselor Licensing Act.
(Source: P.A. 88-45; 89-61, eff. 6-30-95; revised 8-22-01.)
(5 ILCS 80/4.22)
Sec. 4.22. Acts Act repealed on January 1, 2012. The
following Acts are Act is repealed on January 1, 2012:.
The Detection of Deception Examiners Act.
The Home Inspector License Act.
The Interior Design Title Act.
The Professional Boxing Act.
The Real Estate Appraiser Appraisers Licensing Act of
2002.
The Water Well and Pump Installation Contractor's License
Act.
(Source: P.A. 92-104, eff. 7-20-01; 92-180, eff. 7-1-02;
92-239, eff. 8-3-01; 92-453, eff. 8-21-01; 92-499, eff.
1-1-02; 92-500, eff. 12-18-01; revised 12-26-01.)
(5 ILCS 80/4.12 rep.) (from Ch. 127, par. 1904.12)
Section. 5. The Regulatory Sunset Act is amended by
repealing Section 4.12.
Section 6. The Illinois Administrative Procedure Act is
amended by renumbering Section 90 (as added by P.A. 92-405)
as follows:
(5 ILCS 100/1-90)
Sec. 1-90. 90. Rulemaking.
(a) "Rulemaking" means the process and required
documentation for the adoption of Illinois Administrative
Code text.
(b) Required documentation.
(1) At the time of original proposal, rulemaking
documentation must consist of a notice page and new,
amendatory, or repealed text. New, repealed, and
amendatory text must be depicted in the manner required
by Secretary of State rule. Amendatory rulemakings must
indicate text deletion by striking through all text that
is to be omitted and must indicate text addition by
underlining all new text.
(2) At the time of adoption, documentation must
also include pages indicating the text of the new rule,
without striking and underlining, for inclusion in the
official Secretary of State records, the certification
required under Section 5-65(a), and any additional
documentation required by Secretary of State rule.
(3) For a required rulemaking adopted under Section
5-15, an emergency rulemaking under Section 5-45, or a
peremptory rulemaking under Section 5-50, the
documentation requirements of paragraphs (b)(1) and (2)
of this Section apply at the time of adoption.
(c) "Background text" means existing text of the
Illinois Administrative Code that is part of a rulemaking but
is not being amended by the rulemaking. Background text in
rulemaking documentation shall match the current text of the
Illinois Administrative Code.
(d) No material that was originally proposed in one
rulemaking may be combined with another proposed rulemaking
that was initially published without that material. However,
this does not preclude separate rulemakings from being
combined for publication at the time of adoption as
authorized by Secretary of State rule.
(Source: P.A. 92-405, eff. 8-16-01; revised 8-21-01.)
Section 7. The Freedom of Information Act is amended by
changing Sections 2 and 7 as follows:
(5 ILCS 140/2) (from Ch. 116, par. 202)
Sec. 2. Definitions. As used in this Act:
(a) "Public body" means any legislative, executive,
administrative, or advisory bodies of the State, state
universities and colleges, counties, townships, cities,
villages, incorporated towns, school districts and all other
municipal corporations, boards, bureaus, committees, or
commissions of this State, and any subsidiary bodies of any
of the foregoing including but not limited to committees and
subcommittees which are supported in whole or in part by tax
revenue, or which expend tax revenue. "Public body" does not
include a child death review team or the Illinois Child Death
Review Teams Executive Council established under the Child
Death Review Team Act.
(b) "Person" means any individual, corporation,
partnership, firm, organization or association, acting
individually or as a group.
(c) "Public records" means all records, reports, forms,
writings, letters, memoranda, books, papers, maps,
photographs, microfilms, cards, tapes, recordings, electronic
data processing records, recorded information and all other
documentary materials, regardless of physical form or
characteristics, having been prepared, or having been or
being used, received, possessed or under the control of any
public body. "Public records" includes, but is expressly not
limited to: (i) administrative manuals, procedural rules,
and instructions to staff, unless exempted by Section 7(p) of
this Act; (ii) final opinions and orders made in the
adjudication of cases, except an educational institution's
adjudication of student or employee grievance or disciplinary
cases; (iii) substantive rules; (iv) statements and
interpretations of policy which have been adopted by a public
body; (v) final planning policies, recommendations, and
decisions; (vi) factual reports, inspection reports, and
studies whether prepared by or for the public body; (vii) all
information in any account, voucher, or contract dealing with
the receipt or expenditure of public or other funds of public
bodies; (viii) the names, salaries, titles, and dates of
employment of all employees and officers of public bodies;
(ix) materials containing opinions concerning the rights of
the state, the public, a subdivision of state or a local
government, or of any private persons; (x) the name of every
official and the final records of voting in all proceedings
of public bodies; (xi) applications for any contract, permit,
grant, or agreement except as exempted from disclosure by
subsection (g) of Section 7 of this Act; (xii) each report,
document, study, or publication prepared by independent
consultants or other independent contractors for the public
body; (xiii) all other information required by law to be made
available for public inspection or copying; (xiv) information
relating to any grant or contract made by or between a public
body and another public body or private organization; (xv)
waiver documents filed with the State Superintendent of
Education or the president of the University of Illinois
under Section 30-12.5 of the School Code, concerning nominees
for General Assembly scholarships under Sections 30-9, 30-10,
and 30-11 of the School Code; (xvi) complaints, results of
complaints, and Department of Children and Family Services
staff findings of licensing violations at day care
facilities, provided that personal and identifying
information is not released; and (xvii) records, reports,
forms, writings, letters, memoranda, books, papers, and other
documentary information, regardless of physical form or
characteristics, having been prepared, or having been or
being used, received, possessed, or under the control of the
Illinois Sports Facilities Authority dealing with the receipt
or expenditure of public funds or other funds of the
Authority in connection with the reconstruction, renovation,
remodeling, extension, or improvement of all or substantially
all of an existing "facility" as that term is defined in the
Illinois Sports Facilities Authority Act.
(d) "Copying" means the reproduction of any public
record by means of any photographic, electronic, mechanical
or other process, device or means.
(e) "Head of the public body" means the president,
mayor, chairman, presiding officer, director, superintendent,
manager, supervisor or individual otherwise holding primary
executive and administrative authority for the public body,
or such person's duly authorized designee.
(f) "News media" means a newspaper or other periodical
issued at regular intervals whether in print or electronic
format, a news service whether in print or electronic format,
a radio station, a television station, a television network,
a community antenna television service, or a person or
corporation engaged in making news reels or other motion
picture news for public showing.
(Source: P.A. 91-935, eff. 6-1-01; 92-335, eff. 8-10-01;
92-468, eff. 8-22-01; revised 10-10-01.)
(5 ILCS 140/7) (from Ch. 116, par. 207)
Sec. 7. Exemptions.
(1) The following shall be exempt from inspection and
copying:
(a) Information specifically prohibited from
disclosure by federal or State law or rules and
regulations adopted under federal or State law.
(b) Information that, if disclosed, would
constitute a clearly unwarranted invasion of personal
privacy, unless the disclosure is consented to in writing
by the individual subjects of the information. The
disclosure of information that bears on the public duties
of public employees and officials shall not be considered
an invasion of personal privacy. Information exempted
under this subsection (b) shall include but is not
limited to:
(i) files and personal information maintained
with respect to clients, patients, residents,
students or other individuals receiving social,
medical, educational, vocational, financial,
supervisory or custodial care or services directly
or indirectly from federal agencies or public
bodies;
(ii) personnel files and personal information
maintained with respect to employees, appointees or
elected officials of any public body or applicants
for those positions;
(iii) files and personal information
maintained with respect to any applicant, registrant
or licensee by any public body cooperating with or
engaged in professional or occupational
registration, licensure or discipline;
(iv) information required of any taxpayer in
connection with the assessment or collection of any
tax unless disclosure is otherwise required by State
statute; and
(v) information revealing the identity of
persons who file complaints with or provide
information to administrative, investigative, law
enforcement or penal agencies; provided, however,
that identification of witnesses to traffic
accidents, traffic accident reports, and rescue
reports may be provided by agencies of local
government, except in a case for which a criminal
investigation is ongoing, without constituting a
clearly unwarranted per se invasion of personal
privacy under this subsection.
(c) Records compiled by any public body for
administrative enforcement proceedings and any law
enforcement or correctional agency for law enforcement
purposes or for internal matters of a public body, but
only to the extent that disclosure would:
(i) interfere with pending or actually and
reasonably contemplated law enforcement proceedings
conducted by any law enforcement or correctional
agency;
(ii) interfere with pending administrative
enforcement proceedings conducted by any public
body;
(iii) deprive a person of a fair trial or an
impartial hearing;
(iv) unavoidably disclose the identity of a
confidential source or confidential information
furnished only by the confidential source;
(v) disclose unique or specialized
investigative techniques other than those generally
used and known or disclose internal documents of
correctional agencies related to detection,
observation or investigation of incidents of crime
or misconduct;
(vi) constitute an invasion of personal
privacy under subsection (b) of this Section;
(vii) endanger the life or physical safety of
law enforcement personnel or any other person; or
(viii) obstruct an ongoing criminal
investigation.
(d) Criminal history record information maintained
by State or local criminal justice agencies, except the
following which shall be open for public inspection and
copying:
(i) chronologically maintained arrest
information, such as traditional arrest logs or
blotters;
(ii) the name of a person in the custody of a
law enforcement agency and the charges for which
that person is being held;
(iii) court records that are public;
(iv) records that are otherwise available
under State or local law; or
(v) records in which the requesting party is
the individual identified, except as provided under
part (vii) of paragraph (c) of subsection (1) of
this Section.
"Criminal history record information" means data
identifiable to an individual and consisting of
descriptions or notations of arrests, detentions,
indictments, informations, pre-trial proceedings, trials,
or other formal events in the criminal justice system or
descriptions or notations of criminal charges (including
criminal violations of local municipal ordinances) and
the nature of any disposition arising therefrom,
including sentencing, court or correctional supervision,
rehabilitation and release. The term does not apply to
statistical records and reports in which individuals are
not identified and from which their identities are not
ascertainable, or to information that is for criminal
investigative or intelligence purposes.
(e) Records that relate to or affect the security
of correctional institutions and detention facilities.
(f) Preliminary drafts, notes, recommendations,
memoranda and other records in which opinions are
expressed, or policies or actions are formulated, except
that a specific record or relevant portion of a record
shall not be exempt when the record is publicly cited and
identified by the head of the public body. The exemption
provided in this paragraph (f) extends to all those
records of officers and agencies of the General Assembly
that pertain to the preparation of legislative documents.
(g) Trade secrets and commercial or financial
information obtained from a person or business where the
trade secrets or information are proprietary, privileged
or confidential, or where disclosure of the trade secrets
or information may cause competitive harm, including all
information determined to be confidential under Section
4002 of the Technology Advancement and Development Act.
Nothing contained in this paragraph (g) shall be
construed to prevent a person or business from consenting
to disclosure.
(h) Proposals and bids for any contract, grant, or
agreement, including information which if it were
disclosed would frustrate procurement or give an
advantage to any person proposing to enter into a
contractor agreement with the body, until an award or
final selection is made. Information prepared by or for
the body in preparation of a bid solicitation shall be
exempt until an award or final selection is made.
(i) Valuable formulae, computer graphic systems,
designs, drawings and research data obtained or produced
by any public body when disclosure could reasonably be
expected to produce private gain or public loss.
(j) Test questions, scoring keys and other
examination data used to administer an academic
examination or determined the qualifications of an
applicant for a license or employment.
(k) Architects' plans and engineers' technical
submissions for projects not constructed or developed in
whole or in part with public funds and for projects
constructed or developed with public funds, to the extent
that disclosure would compromise security.
(l) Library circulation and order records
identifying library users with specific materials.
(m) Minutes of meetings of public bodies closed to
the public as provided in the Open Meetings Act until the
public body makes the minutes available to the public
under Section 2.06 of the Open Meetings Act.
(n) Communications between a public body and an
attorney or auditor representing the public body that
would not be subject to discovery in litigation, and
materials prepared or compiled by or for a public body in
anticipation of a criminal, civil or administrative
proceeding upon the request of an attorney advising the
public body, and materials prepared or compiled with
respect to internal audits of public bodies.
(o) Information received by a primary or secondary
school, college or university under its procedures for
the evaluation of faculty members by their academic
peers.
(p) Administrative or technical information
associated with automated data processing operations,
including but not limited to software, operating
protocols, computer program abstracts, file layouts,
source listings, object modules, load modules, user
guides, documentation pertaining to all logical and
physical design of computerized systems, employee
manuals, and any other information that, if disclosed,
would jeopardize the security of the system or its data
or the security of materials exempt under this Section.
(q) Documents or materials relating to collective
negotiating matters between public bodies and their
employees or representatives, except that any final
contract or agreement shall be subject to inspection and
copying.
(r) Drafts, notes, recommendations and memoranda
pertaining to the financing and marketing transactions of
the public body. The records of ownership, registration,
transfer, and exchange of municipal debt obligations, and
of persons to whom payment with respect to these
obligations is made.
(s) The records, documents and information relating
to real estate purchase negotiations until those
negotiations have been completed or otherwise terminated.
With regard to a parcel involved in a pending or actually
and reasonably contemplated eminent domain proceeding
under Article VII of the Code of Civil Procedure,
records, documents and information relating to that
parcel shall be exempt except as may be allowed under
discovery rules adopted by the Illinois Supreme Court.
The records, documents and information relating to a real
estate sale shall be exempt until a sale is consummated.
(t) Any and all proprietary information and records
related to the operation of an intergovernmental risk
management association or self-insurance pool or jointly
self-administered health and accident cooperative or
pool.
(u) Information concerning a university's
adjudication of student or employee grievance or
disciplinary cases, to the extent that disclosure would
reveal the identity of the student or employee and
information concerning any public body's adjudication of
student or employee grievances or disciplinary cases,
except for the final outcome of the cases.
(v) Course materials or research materials used by
faculty members.
(w) Information related solely to the internal
personnel rules and practices of a public body.
(x) Information contained in or related to
examination, operating, or condition reports prepared by,
on behalf of, or for the use of a public body responsible
for the regulation or supervision of financial
institutions or insurance companies, unless disclosure is
otherwise required by State law.
(y) Information the disclosure of which is
restricted under Section 5-108 of the Public Utilities
Act.
(z) Manuals or instruction to staff that relate to
establishment or collection of liability for any State
tax or that relate to investigations by a public body to
determine violation of any criminal law.
(aa) Applications, related documents, and medical
records received by the Experimental Organ
Transplantation Procedures Board and any and all
documents or other records prepared by the Experimental
Organ Transplantation Procedures Board or its staff
relating to applications it has received.
(bb) Insurance or self insurance (including any
intergovernmental risk management association or self
insurance pool) claims, loss or risk management
information, records, data, advice or communications.
(cc) Information and records held by the Department
of Public Health and its authorized representatives
relating to known or suspected cases of sexually
transmissible disease or any information the disclosure
of which is restricted under the Illinois Sexually
Transmissible Disease Control Act.
(dd) Information the disclosure of which is
exempted under Section 30 of the Radon Industry Licensing
Act.
(ee) Firm performance evaluations under Section 55
of the Architectural, Engineering, and Land Surveying
Qualifications Based Selection Act.
(ff) Security portions of system safety program
plans, investigation reports, surveys, schedules, lists,
data, or information compiled, collected, or prepared by
or for the Regional Transportation Authority under
Section 2.11 of the Regional Transportation Authority Act
or the St. Clair County Transit District under the
Bi-State Transit Safety Act.
(gg) Information the disclosure of which is
restricted and exempted under Section 50 of the Illinois
Prepaid Tuition Act.
(hh) Information the disclosure of which is
exempted under Section 80 of the State Gift Ban Act.
(ii) Beginning July 1, 1999, information that would
disclose or might lead to the disclosure of secret or
confidential information, codes, algorithms, programs, or
private keys intended to be used to create electronic or
digital signatures under the Electronic Commerce Security
Act.
(jj) Information contained in a local emergency
energy plan submitted to a municipality in accordance
with a local emergency energy plan ordinance that is
adopted under Section 11-21.5-5 of the Illinois Municipal
Code.
(kk) Information and data concerning the
distribution of surcharge moneys collected and remitted
by wireless carriers under the Wireless Emergency
Telephone Safety Act.
(2) This Section does not authorize withholding of
information or limit the availability of records to the
public, except as stated in this Section or otherwise
provided in this Act.
(Source: P.A. 91-137, eff. 7-16-99; 91-357, eff. 7-29-99;
91-660, eff. 12-22-99; 92-16, eff. 6-28-01; 92-241, eff.
8-3-01; 92-281, eff. 8-7-01; revised 10-2-01.)
Section 8. The State Employees Group Insurance Act of
1971 is amended by changing Section 3 as follows:
(5 ILCS 375/3) (from Ch. 127, par. 523)
Sec. 3. Definitions. Unless the context otherwise
requires, the following words and phrases as used in this Act
shall have the following meanings. The Department may define
these and other words and phrases separately for the purpose
of implementing specific programs providing benefits under
this Act.
(a) "Administrative service organization" means any
person, firm or corporation experienced in the handling of
claims which is fully qualified, financially sound and
capable of meeting the service requirements of a contract of
administration executed with the Department.
(b) "Annuitant" means (1) an employee who retires, or
has retired, on or after January 1, 1966 on an immediate
annuity under the provisions of Articles 2, 14, 15 (including
an employee who has retired under the optional retirement
program established under Section 15-158.2), paragraphs (2),
(3), or (5) of Section 16-106, or Article 18 of the Illinois
Pension Code; (2) any person who was receiving group
insurance coverage under this Act as of March 31, 1978 by
reason of his status as an annuitant, even though the annuity
in relation to which such coverage was provided is a
proportional annuity based on less than the minimum period of
service required for a retirement annuity in the system
involved; (3) any person not otherwise covered by this Act
who has retired as a participating member under Article 2 of
the Illinois Pension Code but is ineligible for the
retirement annuity under Section 2-119 of the Illinois
Pension Code; (4) the spouse of any person who is receiving a
retirement annuity under Article 18 of the Illinois Pension
Code and who is covered under a group health insurance
program sponsored by a governmental employer other than the
State of Illinois and who has irrevocably elected to waive
his or her coverage under this Act and to have his or her
spouse considered as the "annuitant" under this Act and not
as a "dependent"; or (5) an employee who retires, or has
retired, from a qualified position, as determined according
to rules promulgated by the Director, under a qualified local
government or a qualified rehabilitation facility or a
qualified domestic violence shelter or service. (For
definition of "retired employee", see (p) post).
(b-5) "New SERS annuitant" means a person who, on or
after January 1, 1998, becomes an annuitant, as defined in
subsection (b), by virtue of beginning to receive a
retirement annuity under Article 14 of the Illinois Pension
Code, and is eligible to participate in the basic program of
group health benefits provided for annuitants under this Act.
(b-6) "New SURS annuitant" means a person who (1) on or
after January 1, 1998, becomes an annuitant, as defined in
subsection (b), by virtue of beginning to receive a
retirement annuity under Article 15 of the Illinois Pension
Code, (2) has not made the election authorized under Section
15-135.1 of the Illinois Pension Code, and (3) is eligible to
participate in the basic program of group health benefits
provided for annuitants under this Act.
(b-7) "New TRS State annuitant" means a person who, on
or after July 1, 1998, becomes an annuitant, as defined in
subsection (b), by virtue of beginning to receive a
retirement annuity under Article 16 of the Illinois Pension
Code based on service as a teacher as defined in paragraph
(2), (3), or (5) of Section 16-106 of that Code, and is
eligible to participate in the basic program of group health
benefits provided for annuitants under this Act.
(c) "Carrier" means (1) an insurance company, a
corporation organized under the Limited Health Service
Organization Act or the Voluntary Health Services Plan Act, a
partnership, or other nongovernmental organization, which is
authorized to do group life or group health insurance
business in Illinois, or (2) the State of Illinois as a
self-insurer.
(d) "Compensation" means salary or wages payable on a
regular payroll by the State Treasurer on a warrant of the
State Comptroller out of any State, trust or federal fund, or
by the Governor of the State through a disbursing officer of
the State out of a trust or out of federal funds, or by any
Department out of State, trust, federal or other funds held
by the State Treasurer or the Department, to any person for
personal services currently performed, and ordinary or
accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
the optional retirement program established under Section
15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
Article 18 of the Illinois Pension Code, for disability
incurred after January 1, 1966, or benefits payable under the
Workers' Compensation or Occupational Diseases Act or
benefits payable under a sick pay plan established in
accordance with Section 36 of the State Finance Act.
"Compensation" also means salary or wages paid to an employee
of any qualified local government or qualified rehabilitation
facility or a qualified domestic violence shelter or service.
(e) "Commission" means the State Employees Group
Insurance Advisory Commission authorized by this Act.
Commencing July 1, 1984, "Commission" as used in this Act
means the Illinois Economic and Fiscal Commission as
established by the Legislative Commission Reorganization Act
of 1984.
(f) "Contributory", when referred to as contributory
coverage, shall mean optional coverages or benefits elected
by the member toward the cost of which such member makes
contribution, or which are funded in whole or in part through
the acceptance of a reduction in earnings or the foregoing of
an increase in earnings by an employee, as distinguished from
noncontributory coverage or benefits which are paid entirely
by the State of Illinois without reduction of the member's
salary.
(g) "Department" means any department, institution,
board, commission, officer, court or any agency of the State
government receiving appropriations and having power to
certify payrolls to the Comptroller authorizing payments of
salary and wages against such appropriations as are made by
the General Assembly from any State fund, or against trust
funds held by the State Treasurer and includes boards of
trustees of the retirement systems created by Articles 2, 14,
15, 16 and 18 of the Illinois Pension Code. "Department"
also includes the Illinois Comprehensive Health Insurance
Board, the Board of Examiners established under the Illinois
Public Accounting Act, and the Illinois Rural Bond Bank.
(h) "Dependent", when the term is used in the context of
the health and life plan, means a member's spouse and any
unmarried child (1) from birth to age 19 including an adopted
child, a child who lives with the member from the time of the
filing of a petition for adoption until entry of an order of
adoption, a stepchild or recognized child who lives with the
member in a parent-child relationship, or a child who lives
with the member if such member is a court appointed guardian
of the child, or (2) age 19 to 23 enrolled as a full-time
student in any accredited school, financially dependent upon
the member, and eligible to be claimed as a dependent for
income tax purposes, or (3) age 19 or over who is mentally or
physically handicapped. For the health plan only, the term
"dependent" also includes any person enrolled prior to the
effective date of this Section who is dependent upon the
member to the extent that the member may claim such person as
a dependent for income tax deduction purposes; no other such
person may be enrolled. For the health plan only, the term
"dependent" also includes any person who has received after
June 30, 2000 an organ transplant and who is financially
dependent upon the member and eligible to be claimed as a
dependent for income tax purposes.
(i) "Director" means the Director of the Illinois
Department of Central Management Services.
(j) "Eligibility period" means the period of time a
member has to elect enrollment in programs or to select
benefits without regard to age, sex or health.
(k) "Employee" means and includes each officer or
employee in the service of a department who (1) receives his
compensation for service rendered to the department on a
warrant issued pursuant to a payroll certified by a
department or on a warrant or check issued and drawn by a
department upon a trust, federal or other fund or on a
warrant issued pursuant to a payroll certified by an elected
or duly appointed officer of the State or who receives
payment of the performance of personal services on a warrant
issued pursuant to a payroll certified by a Department and
drawn by the Comptroller upon the State Treasurer against
appropriations made by the General Assembly from any fund or
against trust funds held by the State Treasurer, and (2) is
employed full-time or part-time in a position normally
requiring actual performance of duty during not less than 1/2
of a normal work period, as established by the Director in
cooperation with each department, except that persons elected
by popular vote will be considered employees during the
entire term for which they are elected regardless of hours
devoted to the service of the State, and (3) except that
"employee" does not include any person who is not eligible by
reason of such person's employment to participate in one of
the State retirement systems under Articles 2, 14, 15 (either
the regular Article 15 system or the optional retirement
program established under Section 15-158.2) or 18, or under
paragraph (2), (3), or (5) of Section 16-106, of the Illinois
Pension Code, but such term does include persons who are
employed during the 6 month qualifying period under Article
14 of the Illinois Pension Code. Such term also includes any
person who (1) after January 1, 1966, is receiving ordinary
or accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
the optional retirement program established under Section
15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
Article 18 of the Illinois Pension Code, for disability
incurred after January 1, 1966, (2) receives total permanent
or total temporary disability under the Workers' Compensation
Act or Occupational Disease Act as a result of injuries
sustained or illness contracted in the course of employment
with the State of Illinois, or (3) is not otherwise covered
under this Act and has retired as a participating member
under Article 2 of the Illinois Pension Code but is
ineligible for the retirement annuity under Section 2-119 of
the Illinois Pension Code. However, a person who satisfies
the criteria of the foregoing definition of "employee" except
that such person is made ineligible to participate in the
State Universities Retirement System by clause (4) of
subsection (a) of Section 15-107 of the Illinois Pension Code
is also an "employee" for the purposes of this Act.
"Employee" also includes any person receiving or eligible for
benefits under a sick pay plan established in accordance with
Section 36 of the State Finance Act. "Employee" also includes
each officer or employee in the service of a qualified local
government, including persons appointed as trustees of
sanitary districts regardless of hours devoted to the service
of the sanitary district, and each employee in the service of
a qualified rehabilitation facility and each full-time
employee in the service of a qualified domestic violence
shelter or service, as determined according to rules
promulgated by the Director.
(l) "Member" means an employee, annuitant, retired
employee or survivor.
(m) "Optional coverages or benefits" means those
coverages or benefits available to the member on his or her
voluntary election, and at his or her own expense.
(n) "Program" means the group life insurance, health
benefits and other employee benefits designed and contracted
for by the Director under this Act.
(o) "Health plan" means a health benefits program
offered by the State of Illinois for persons eligible for the
plan.
(p) "Retired employee" means any person who would be an
annuitant as that term is defined herein but for the fact
that such person retired prior to January 1, 1966. Such term
also includes any person formerly employed by the University
of Illinois in the Cooperative Extension Service who would be
an annuitant but for the fact that such person was made
ineligible to participate in the State Universities
Retirement System by clause (4) of subsection (a) of Section
15-107 of the Illinois Pension Code.
(q) "Survivor" means a person receiving an annuity as a
survivor of an employee or of an annuitant. "Survivor" also
includes: (1) the surviving dependent of a person who
satisfies the definition of "employee" except that such
person is made ineligible to participate in the State
Universities Retirement System by clause (4) of subsection
(a) of Section 15-107 of the Illinois Pension Code; and (2)
the surviving dependent of any person formerly employed by
the University of Illinois in the Cooperative Extension
Service who would be an annuitant except for the fact that
such person was made ineligible to participate in the State
Universities Retirement System by clause (4) of subsection
(a) of Section 15-107 of the Illinois Pension Code.
(q-5) "New SERS survivor" means a survivor, as defined
in subsection (q), whose annuity is paid under Article 14 of
the Illinois Pension Code and is based on the death of (i) an
employee whose death occurs on or after January 1, 1998, or
(ii) a new SERS annuitant as defined in subsection (b-5).
(q-6) "New SURS survivor" means a survivor, as defined
in subsection (q), whose annuity is paid under Article 15 of
the Illinois Pension Code and is based on the death of (i) an
employee whose death occurs on or after January 1, 1998, or
(ii) a new SURS annuitant as defined in subsection (b-6).
(q-7) "New TRS State survivor" means a survivor, as
defined in subsection (q), whose annuity is paid under
Article 16 of the Illinois Pension Code and is based on the
death of (i) an employee who is a teacher as defined in
paragraph (2), (3), or (5) of Section 16-106 of that Code and
whose death occurs on or after July 1, 1998, or (ii) a new
TRS State annuitant as defined in subsection (b-7).
(r) "Medical services" means the services provided
within the scope of their licenses by practitioners in all
categories licensed under the Medical Practice Act of 1987.
(s) "Unit of local government" means any county,
municipality, township, school district (including a
combination of school districts under the Intergovernmental
Cooperation Act), special district or other unit, designated
as a unit of local government by law, which exercises limited
governmental powers or powers in respect to limited
governmental subjects, any not-for-profit association with a
membership that primarily includes townships and township
officials, that has duties that include provision of research
service, dissemination of information, and other acts for the
purpose of improving township government, and that is funded
wholly or partly in accordance with Section 85-15 of the
Township Code; any not-for-profit corporation or association,
with a membership consisting primarily of municipalities,
that operates its own utility system, and provides research,
training, dissemination of information, or other acts to
promote cooperation between and among municipalities that
provide utility services and for the advancement of the goals
and purposes of its membership; the Southern Illinois
Collegiate Common Market, which is a consortium of higher
education institutions in Southern Illinois; and the Illinois
Association of Park Districts. "Qualified local government"
means a unit of local government approved by the Director and
participating in a program created under subsection (i) of
Section 10 of this Act.
(t) "Qualified rehabilitation facility" means any
not-for-profit organization that is accredited by the
Commission on Accreditation of Rehabilitation Facilities or
certified by the Department of Human Services (as successor
to the Department of Mental Health and Developmental
Disabilities) to provide services to persons with
disabilities and which receives funds from the State of
Illinois for providing those services, approved by the
Director and participating in a program created under
subsection (j) of Section 10 of this Act.
(u) "Qualified domestic violence shelter or service"
means any Illinois domestic violence shelter or service and
its administrative offices funded by the Department of Human
Services (as successor to the Illinois Department of Public
Aid), approved by the Director and participating in a program
created under subsection (k) of Section 10.
(v) "TRS benefit recipient" means a person who:
(1) is not a "member" as defined in this Section;
and
(2) is receiving a monthly benefit or retirement
annuity under Article 16 of the Illinois Pension Code;
and
(3) either (i) has at least 8 years of creditable
service under Article 16 of the Illinois Pension Code, or
(ii) was enrolled in the health insurance program offered
under that Article on January 1, 1996, or (iii) is the
survivor of a benefit recipient who had at least 8 years
of creditable service under Article 16 of the Illinois
Pension Code or was enrolled in the health insurance
program offered under that Article on the effective date
of this amendatory Act of 1995, or (iv) is a recipient or
survivor of a recipient of a disability benefit under
Article 16 of the Illinois Pension Code.
(w) "TRS dependent beneficiary" means a person who:
(1) is not a "member" or "dependent" as defined in
this Section; and
(2) is a TRS benefit recipient's: (A) spouse, (B)
dependent parent who is receiving at least half of his or
her support from the TRS benefit recipient, or (C)
unmarried natural or adopted child who is (i) under age
19, or (ii) enrolled as a full-time student in an
accredited school, financially dependent upon the TRS
benefit recipient, eligible to be claimed as a dependent
for income tax purposes, and either is under age 24 or
was, on January 1, 1996, participating as a dependent
beneficiary in the health insurance program offered under
Article 16 of the Illinois Pension Code, or (iii) age 19
or over who is mentally or physically handicapped.
(x) "Military leave with pay and benefits" refers to
individuals in basic training for reserves, special/advanced
training, annual training, emergency call up, or activation
by the President of the United States with approved pay and
benefits.
(y) "Military leave without pay and benefits" refers to
individuals who enlist for active duty in a regular component
of the U.S. Armed Forces or other duty not specified or
authorized under military leave with pay and benefits.
(z) "Community college benefit recipient" means a person
who:
(1) is not a "member" as defined in this Section;
and
(2) is receiving a monthly survivor's annuity or
retirement annuity under Article 15 of the Illinois
Pension Code; and
(3) either (i) was a full-time employee of a
community college district or an association of community
college boards created under the Public Community College
Act (other than an employee whose last employer under
Article 15 of the Illinois Pension Code was a community
college district subject to Article VII of the Public
Community College Act) and was eligible to participate in
a group health benefit plan as an employee during the
time of employment with a community college district
(other than a community college district subject to
Article VII of the Public Community College Act) or an
association of community college boards, or (ii) is the
survivor of a person described in item (i).
(aa) "Community college dependent beneficiary" means a
person who:
(1) is not a "member" or "dependent" as defined in
this Section; and
(2) is a community college benefit recipient's: (A)
spouse, (B) dependent parent who is receiving at least
half of his or her support from the community college
benefit recipient, or (C) unmarried natural or adopted
child who is (i) under age 19, or (ii) enrolled as a
full-time student in an accredited school, financially
dependent upon the community college benefit recipient,
eligible to be claimed as a dependent for income tax
purposes and under age 23, or (iii) age 19 or over and
mentally or physically handicapped.
(Source: P.A. 91-390, eff. 7-30-99; 91-395, eff. 7-30-99;
91-617, eff. 8-19-99; 92-16, eff. 6-28-01; 92-186, eff.
1-1-02; 92-204, eff. 8-1-01; revised 9-19-01.)
Section 9. The Civil Administrative Code of Illinois is
amended by changing Section 1-5 as follows:
(20 ILCS 5/1-5)
Sec. 1-5. Articles. The Civil Administrative Code of
Illinois consists of the following Articles:
Article 1. General Provisions (20 ILCS 5/1-1 and
following).
Article 5. Departments of State Government Law (20 ILCS
5/5-1 and following).
Article 50. State Budget Law (15 ILCS 20/).
Article 110. Department on Aging Law (20 ILCS 110/).
Article 205. Department of Agriculture Law (20 ILCS
205/).
Article 250. State Fair Grounds Title Law (5 ILCS 620/).
Article 310. Department of Human Services (Alcoholism and
Substance Abuse) Law (20 ILCS 310/).
Article 405. Department of Central Management Services
Law (20 ILCS 405/).
Article 510. Department of Children and Family Services
Powers Law (20 ILCS 510/).
Article 605. Department of Commerce and Community Affairs
Law (20 ILCS 605/).
Article 805. Department of Natural Resources
(Conservation) Law (20 ILCS 805/).
Article 1005. Department of Employment Security Law (20
ILCS 1005/).
Article 1405. Department of Insurance Law (20 ILCS
1405/).
Article 1505. Department of Labor Law (20 ILCS 1505/).
Article 1710. Department of Human Services (Mental Health
and Developmental Disabilities) Law (20 ILCS 1710/).
Article 1905. Department of Natural Resources (Mines and
Minerals) Law (20 ILCS 1905/).
Article 2005. Department of Nuclear Safety Law (20 ILCS
2005/).
Article 2105. Department of Professional Regulation Law
(20 ILCS 2105/).
Article 2205. Department of Public Aid Law (20 ILCS
2205/).
Article 2310. Department of Public Health Powers and
Duties Law (20 ILCS 2310/).
Article 2505. Department of Revenue Law (20 ILCS 2505/).
Article 2510. Certified Audit Program Law (20 ILCS
2510/).
Article 2605. Department of State Police Law (20 ILCS
2605/).
Article 2705. Department of Transportation Law (20 ILCS
2705/).
Article 3000. University of Illinois Exercise of
Functions and Duties Law (110 ILCS 355/).
(Source: P.A. 91-239, eff. 1-1-00; 92-16, eff. 6-28-01;
revised 10-10-01.)
Section 10. The Illinois Act on the Aging is amended by
changing Section 4.01 as follows:
(20 ILCS 105/4.01) (from Ch. 23, par. 6104.01)
Sec. 4.01. Additional powers and duties of the
Department. In addition to powers and duties otherwise
provided by law, the Department shall have the following
powers and duties:
(1) To evaluate all programs, services, and facilities
for the aged and for minority senior citizens within the
State and determine the extent to which present public or
private programs, services and facilities meet the needs of
the aged.
(2) To coordinate and evaluate all programs, services,
and facilities for the Aging and for minority senior citizens
presently furnished by State agencies and make appropriate
recommendations regarding such services, programs and
facilities to the Governor and/or the General Assembly.
(3) To function as the sole State agency to develop a
comprehensive plan to meet the needs of the State's senior
citizens and the State's minority senior citizens.
(4) To receive and disburse State and federal funds made
available directly to the Department including those funds
made available under the Older Americans Act and the Senior
Community Service Employment Program for providing services
for senior citizens and minority senior citizens or for
purposes related thereto, and shall develop and administer
any State Plan for the Aging required by federal law.
(5) To solicit, accept, hold, and administer in behalf
of the State any grants or legacies of money, securities, or
property to the State of Illinois for services to senior
citizens and minority senior citizens or purposes related
thereto.
(6) To provide consultation and assistance to
communities, area agencies on aging, and groups developing
local services for senior citizens and minority senior
citizens.
(7) To promote community education regarding the
problems of senior citizens and minority senior citizens
through institutes, publications, radio, television and the
local press.
(8) To cooperate with agencies of the federal government
in studies and conferences designed to examine the needs of
senior citizens and minority senior citizens and to prepare
programs and facilities to meet those needs.
(9) To establish and maintain information and referral
sources throughout the State when not provided by other
agencies.
(10) To provide the staff support as may reasonably be
required by the Council and the Coordinating Committee of
State Agencies Serving Older Persons.
(11) To make and enforce rules and regulations necessary
and proper to the performance of its duties.
(12) To establish and fund programs or projects or
experimental facilities that are specially designed as
alternatives to institutional care.
(13) To develop a training program to train the
counselors presently employed by the Department's aging
network to provide Medicare beneficiaries with counseling and
advocacy in Medicare, private health insurance, and related
health care coverage plans. The Department shall report to
the General Assembly on the implementation of the training
program on or before December 1, 1986.
(14) To make a grant to an institution of higher
learning to study the feasibility of establishing and
implementing an affirmative action employment plan for the
recruitment, hiring, training and retraining of persons 60 or
more years old for jobs for which their employment would not
be precluded by law.
(15) To present one award annually in each of the
categories of community service, education, the performance
and graphic arts, and the labor force to outstanding Illinois
senior citizens and minority senior citizens in recognition
of their individual contributions to either community
service, education, the performance and graphic arts, or the
labor force. The awards shall be presented to four senior
citizens and minority senior citizens selected from a list of
44 nominees compiled annually by the Department. Nominations
shall be solicited from senior citizens' service providers,
area agencies on aging, senior citizens' centers, and senior
citizens' organizations. The Department shall consult with
the Coordinating Committee of State Agencies Serving Older
Persons to determine which of the nominees shall be the
recipient in each category of community service. The
Department shall establish a central location within the
State to be designated as the Senior Illinoisans Hall of Fame
for the public display of all the annual awards, or replicas
thereof.
(16) To establish multipurpose senior centers through
area agencies on aging and to fund those new and existing
multipurpose senior centers through area agencies on aging,
the establishment and funding to begin in such areas of the
State as the Department shall designate by rule and as
specifically appropriated funds become available.
(17) To develop the content and format of the
acknowledgment regarding non-recourse reverse mortgage loans
under Section 6.1 of the Illinois Banking Act; to provide
independent consumer information on reverse mortgages and
alternatives; and to refer consumers to independent
counseling services with expertise in reverse mortgages.
(18) To develop a pamphlet in English and Spanish which
may be used by physicians licensed to practice medicine in
all of its branches pursuant to the Medical Practice Act of
1987, pharmacists licensed pursuant to the Pharmacy Practice
Act of 1987, and Illinois residents 65 years of age or older
for the purpose of assisting physicians, pharmacists, and
patients in monitoring prescriptions provided by various
physicians and to aid persons 65 years of age or older in
complying with directions for proper use of pharmaceutical
prescriptions. The pamphlet may provide space for recording
information including but not limited to the following:
(a) name and telephone number of the patient;
(b) name and telephone number of the prescribing
physician;
(c) date of prescription;
(d) name of drug prescribed;
(e) directions for patient compliance; and
(f) name and telephone number of dispensing
pharmacy.
In developing the pamphlet, the Department shall consult
with the Illinois State Medical Society, the Center for
Minority Health Services, the Illinois Pharmacists
Association and senior citizens organizations. The
Department shall distribute the pamphlets to physicians,
pharmacists and persons 65 years of age or older or various
senior citizen organizations throughout the State.
(19) To conduct a study by April 1, 1994 of the
feasibility of implementing the Senior Companion Program
throughout the State for the fiscal year beginning July 1,
1994.
(20) With respect to contracts in effect on July 1,
1994, the Department shall increase the grant amounts so that
the reimbursement rates paid through the community care
program for chore housekeeping services and homemakers are at
the same rate, which shall be the higher of the 2 rates
currently paid. With respect to all contracts entered into,
renewed, or extended on or after July 1, 1994, the
reimbursement rates paid through the community care program
for chore housekeeping services and homemakers shall be the
same.
(21) From funds appropriated to the Department from the
Meals on Wheels Fund, a special fund in the State treasury
that is hereby created, and in accordance with State and
federal guidelines and the intrastate funding formula, to
make grants to area agencies on aging, designated by the
Department, for the sole purpose of delivering meals to
homebound persons 60 years of age and older.
(22) To distribute, through its area agencies on aging,
information alerting seniors on safety issues regarding
emergency weather conditions, including extreme heat and
cold, flooding, tornadoes, electrical storms, and other
severe storm weather. The information shall include all
necessary instructions for safety and all emergency telephone
numbers of organizations that will provide additional
information and assistance.
(23) To develop guidelines for the organization and
implementation of Volunteer Services Credit Programs to be
administered by Area Agencies on Aging or community based
senior service organizations. The Department shall hold
public hearings on the proposed guidelines for public
comment, suggestion, and determination of public interest.
The guidelines shall be based on the findings of other states
and of community organizations in Illinois that are currently
operating volunteer services credit programs or demonstration
volunteer services credit programs. The Department shall
offer guidelines for all aspects of the programs including,
but not limited to, the following:
(a) types of services to be offered by volunteers;
(b) types of services to be received upon the
redemption of service credits;
(c) issues of liability for the volunteers and the
administering organizations;
(d) methods of tracking service credits earned and
service credits redeemed;
(e) issues of time limits for redemption of service
credits;
(f) methods of recruitment of volunteers;
(g) utilization of community volunteers, community
service groups, and other resources for delivering
services to be received by service credit program
clients;
(h) accountability and assurance that services will
be available to individuals who have earned service
credits; and
(i) volunteer screening and qualifications.
The Department shall submit a written copy of the guidelines
to the General Assembly by July 1, 1998.
(Source: P.A. 89-249, eff. 8-4-95; 89-580, eff. 1-1-97;
90-251, eff. 1-1-98; revised 12-07-01.)
Section 11. The Children and Family Services Act is
amended by changing Section 7 and setting forth and
renumbering multiple versions of Section 5d as follows:
(20 ILCS 505/5d)
Sec. 5d. The Direct Child Welfare Service Employee
License Board.
(a) For purposes of this Section:
(1) "Board" means the Direct Child Welfare Service
Employee License Board.
(2) "Director" means the Director of Children and
Family Services.
(b) The Direct Child Welfare Service Employee License
Board is created within the Department of Children and Family
Services and shall consist of 9 members appointed by the
Director. The Director shall annually designate a
chairperson and vice-chairperson of the Board. The
membership of the Board must be composed as follows: (i) 5
licensed professionals from the field of human services with
a human services degree or equivalent course work as required
by rule of the Department and who are in good standing within
their profession, at least 2 of which must be employed in the
private not-for-profit sector and at least one of which in
the public sector; (ii) 2 faculty members of an accredited
university who have child welfare experience and are in good
standing within their profession and (iii) 2 members of the
general public who are not licensed under this Act or a
similar rule and will represent consumer interests.
In making the first appointments, the Director shall
appoint 3 members to serve for a term of one year, 3 members
to serve for a term of 2 years, and 3 members to serve for a
term of 3 years, or until their successors are appointed and
qualified. Their successors shall be appointed to serve
3-year terms, or until their successors are appointed and
qualified. Appointments to fill unexpired vacancies shall be
made in the same manner as original appointments. No member
may be reappointed if a reappointment would cause that member
to serve on the Board for longer than 6 consecutive years.
Board membership must have reasonable representation from
different geographic areas of Illinois, and all members must
be residents of this State.
The Director may terminate the appointment of any member
for good cause, including but not limited to (i) unjustified
absences from Board meetings or other failure to meet Board
responsibilities, (ii) failure to recuse himself or herself
when required by subsection (c) of this Section or Department
rule, or (iii) failure to maintain the professional position
required by Department rule. No member of the Board may have
a pending or indicated report of child abuse or neglect or a
pending complaint or criminal conviction of any of the
offenses set forth in paragraph (b) of Section 4.2 of the
Child Care Act of 1969.
The members of the Board shall receive no compensation
for the performance of their duties as members, but each
member shall be reimbursed for his or her reasonable and
necessary expenses incurred in attending the meetings of the
Board.
(c) The Board shall make recommendations to the Director
regarding licensure rules. Board members must recuse
themselves from sitting on any matter involving an employee
of a child welfare agency at which the Board member is an
employee or contractual employee. The Board shall make a
final determination concerning revocation, suspension, or
reinstatement of an employee's direct child welfare service
license after a hearing conducted under the Department's
rules. Upon notification of the manner of the vote to all the
members, votes on a final determination may be cast in
person, by telephonic or electronic means, or by mail at the
discretion of the chairperson. A simple majority of the
members appointed and serving is required when Board members
vote by mail or by telephonic or electronic means. A
majority of the currently appointed and serving Board members
constitutes a quorum. A majority of a quorum is required
when a recommendation is voted on during a Board meeting. A
vacancy in the membership of the Board shall not impair the
right of a quorum to perform all the duties of the Board.
Board members are not personally liable in any action based
upon a disciplinary proceeding or otherwise for any action
taken in good faith as a member of the Board.
(d) The Director may assign Department employees to
provide staffing services to the Board. The Department must
promulgate any rules necessary to implement and administer
the requirements of this Section.
(Source: P.A. 92-471, eff. 8-22-01.)
(20 ILCS 505/5e)
Sec. 5e. 5d. Advocacy Office for Children and Families.
The Department of Children and Family Services shall
establish and maintain an Advocacy Office for Children and
Families that shall, in addition to other duties assigned by
the Director, receive and respond to complaints that may be
filed by children, parents, caretakers, and relatives of
children receiving child welfare services from the Department
of Children and Family Services or its agents. The
Department shall promulgate policies and procedures for
filing, processing, investigating, and resolving the
complaints. The Department shall make a final report to the
complainant of its findings. If a final report is not
completed, the Department shall report on its disposition
every 30 days. The Advocacy Office shall include a statewide
toll-free telephone number that may be used to file
complaints, or to obtain information about the delivery of
child welfare services by the Department or its agents. This
telephone number shall be included in all appropriate notices
and handbooks regarding services available through the
Department.
(Source: P.A. 92-334, eff. 8-10-01; revised 10-17-01.)
(20 ILCS 505/7) (from Ch. 23, par. 5007)
Sec. 7. Placement of children; considerations.
(a) In placing any child under this Act, the Department
shall place such child, as far as possible, in the care and
custody of some individual holding the same religious belief
as the parents of the child, or with some child care facility
which is operated by persons of like religious faith as the
parents of such child.
(b) In placing a child under this Act, the Department
may place a child with a relative if the Department has
reason to believe that the relative will be able to
adequately provide for the child's safety and welfare. The
Department may not place a child with a relative, with the
exception of certain circumstances which may be waived as
defined by the Department in rules, if the results of a check
of the Law Enforcement Agency Data System (LEADS) identifies
a prior criminal conviction of the relative or any adult
member of the relative's household for any of the following
offenses under the Criminal Code of 1961:
(1) murder;
(1.1) solicitation of murder;
(1.2) solicitation of murder for hire;
(1.3) intentional homicide of an unborn child;
(1.4) voluntary manslaughter of an unborn child;
(1.5) involuntary manslaughter;
(1.6) reckless homicide;
(1.7) concealment of a homicidal death;
(1.8) involuntary manslaughter of an unborn child;
(1.9) reckless homicide of an unborn child;
(1.10) drug-induced homicide;
(2) a sex offense under Article 11, except offenses
described in Sections 11-7, 11-8, 11-12, and 11-13;
(3) kidnapping;
(3.1) aggravated unlawful restraint;
(3.2) forcible detention;
(3.3) aiding and abetting child abduction;
(4) aggravated kidnapping;
(5) child abduction;
(6) aggravated battery of a child;
(7) criminal sexual assault;
(8) aggravated criminal sexual assault;
(8.1) predatory criminal sexual assault of a child;
(9) criminal sexual abuse;
(10) aggravated sexual abuse;
(11) heinous battery;
(12) aggravated battery with a firearm;
(13) tampering with food, drugs, or cosmetics;
(14) drug-induced infliction of great bodily harm;
(15) aggravated stalking;
(16) home invasion;
(17) vehicular invasion;
(18) criminal transmission of HIV;
(19) criminal abuse or neglect of an elderly or
disabled person;
(20) child abandonment;
(21) endangering the life or health of a child;
(22) ritual mutilation;
(23) ritualized abuse of a child;
(24) an offense in any other state the elements of
which are similar and bear a substantial relationship to
any of the foregoing offenses.
For the purpose of this subsection, "relative" shall include
any person, 21 years of age or over, other than the parent,
who (i) is currently related to the child in any of the
following ways by blood or adoption: grandparent, sibling,
great-grandparent, uncle, aunt, nephew, niece, first cousin,
second cousin, godparent, great-uncle, or great-aunt; or (ii)
is the spouse of such a relative; or (iii) is the child's
step-father, step-mother, or adult step-brother or
step-sister; "relative" also includes a person related in any
of the foregoing ways to a sibling of a child, even though
the person is not related to the child, when the child and
its sibling are placed together with that person. A relative
with whom a child is placed pursuant to this subsection may,
but is not required to, apply for licensure as a foster
family home pursuant to the Child Care Act of 1969; provided,
however, that as of July 1, 1995, foster care payments shall
be made only to licensed foster family homes pursuant to the
terms of Section 5 of this Act.
(c) In placing a child under this Act, the Department
shall ensure that the child's health, safety, and best
interests are met in making a family foster care placement.
The Department shall consider the individual needs of the
child and the capacity of the prospective foster or adoptive
parents to meet the needs of the child. When a child must be
placed outside his or her home and cannot be immediately
returned to his or her parents or guardian, a comprehensive,
individualized assessment shall be performed of that child at
which time the needs of the child shall be determined. Only
if race, color, or national origin is identified as a
legitimate factor in advancing the child's best interests
shall it be considered. Race, color, or national origin
shall not be routinely considered in making a placement
decision. The Department shall make special efforts for the
diligent recruitment of potential foster and adoptive
families that reflect the ethnic and racial diversity of the
children for whom foster and adoptive homes are needed.
"Special efforts" shall include contacting and working with
community organizations and religious organizations and may
include contracting with those organizations, utilizing local
media and other local resources, and conducting outreach
activities.
(c-1) At the time of placement, the Department shall
consider concurrent planning, as described in subsection
(l-1) of Section 5, so that permanency may occur at the
earliest opportunity. Consideration should be given so that
if reunification fails or is delayed, the placement made is
the best available placement to provide permanency for the
child.
(d) The Department may accept gifts, grants, offers of
services, and other contributions to use in making special
recruitment efforts.
(e) The Department in placing children in adoptive or
foster care homes may not, in any policy or practice relating
to the placement of children for adoption or foster care,
discriminate against any child or prospective adoptive or
foster parent on the basis of race.
(Source: P.A. 92-192, eff. 1-1-02; 92-328, eff. 1-1-02;
92-334, eff. 8-10-01; revised 10-15-01.)
Section 12. The Department of Commerce and Community
Affairs Law of the Civil Administrative Code of Illinois is
amended by changing Sections 605-605 and 605-710 as follows:
(20 ILCS 605/605-605) (was 20 ILCS 605/46.57)
Sec. 605-605. Illinois Product and Services Exchange Law
Act.
(a) This Section may be cited as the Illinois Product
and Services Exchange Law Act.
(b) It is hereby found and declared that many large
Illinois firms and government agencies are purchasing
products and services from vendors in locations other than
Illinois, and that there is a need to assist those large
businesses and government agencies in locating Illinois
vendors who can provide those products and services of equal
quality and at comparable or lower costs; it is further found
and declared that the purchase of needed products and
services within the State by large firms and government
agencies would aid the survival and expansion of small
businesses in Illinois and help to strengthen the State's
economy.
(c) As used in this Section, "Illinois Product and
Services Exchange" means a program aimed at promoting the
purchase of goods and services produced in Illinois by firms
and government agencies within the State.
(d) The Department shall have the authority to establish
and administer an Illinois Product and Services Exchange
Program, which may include, but is not limited to, the
following powers and duties:
(1) To accept grants, loans, or appropriations from
the federal government or the State or any agency or
instrumentality thereof, and to assess fees for any
services performed under the Illinois Product and
Services Exchange Program, to carry out the Program.
(2) To form an Illinois Product and Services
Exchange Council, made up of Illinois large firms and
small firms to provide advice and counsel in directing a
statewide Product and Services Exchange Program.
(3) To publicize and advertise to Illinois firms
and government agencies the importance and benefits of
buying goods and services provided by vendors located
within the State.
(4) To secure the cooperation of Illinois' large
firms, federal, State, and local governments, non-profit
agencies, and others to carry out this program.
(5) To match the needs for products and services of
business firms and government agencies with the
capabilities of small Illinois firms that can provide
those needed goods and services.
(6) To hold purchasing agent seminars, fairs,
conferences, and workshops to aid small Illinois
businesses in obtaining contracts for goods and services
from larger firms and government agencies within the
State.
(7) To assist business firms and government
agencies to analyze their buying activities and to find
ways to carry out those activities in an effective and
economical manner, while promoting subcontract activity
with small Illinois firms.
(8) To establish manual and electronic buying
directories, including stand alone computer data bases
that list qualified vendors and procurement
opportunities.
(9) To promote through other means the use by
government agencies and large businesses of products and
services produced by small Illinois firms.
(10) To subcontract, grant funds, or otherwise
participate with qualified private firms, existing
procurement centers, or other organizations that have
designed programs, approved in accordance with procedures
determined by the Department, that are aimed at assisting
small Illinois firms obtain contracts for products and
services from local government agencies and large
Illinois businesses.
(11) To develop and administer guidelines for
projects that provide assistance to the Department in
connection with the Illinois Product and Services
Exchange Program.
(Source: P.A. 91-239, eff. 1-1-00; revised 1-25-02.)
(20 ILCS 605/605-710)
Sec. 605-710. Regional tourism development
organizations.
(a) The Department may, subject to appropriation,
provide grants from the Tourism Promotion Fund for the
administrative costs of not-for-profit regional tourism
development organizations that assist the Department in
developing tourism throughout a multi-county geographical
area designated by the Department. Regional tourism
development organizations receiving funds under this Section
may be required by the Department to submit to audits of
contracts awarded by the Department to determine whether the
regional tourism development organization has performed all
contractual obligations under those contracts.
Every employee of a regional tourism development
organization receiving funds under this Section shall
disclose to the organization's governing board and to the
Department any economic interest that employee may have in
any entity with which the regional tourism development
organization has contracted or to which the regional tourism
development organization has granted funds.
(b) The Department, from moneys transferred from the
General Revenue Fund to the Tourism Promotion Fund and
appropriated from the Tourism Promotion Fund, shall first
provide funding of $5,000,000 annually to a governmental
entity with at least 2,000,000 square feet of exhibition
space that has as part of its duties the promotion of
cultural, scientific and trade exhibits and events within a
county with a population of more than 3,000,000, to be used
for any of the governmental entity's general corporate
purposes.
(Source: P.A. 92-11, eff. 6-11-01; 92-38, eff. 6-28-01;
revised 9-18-01.)
Section 13. The Interagency Wetland Policy Act of 1989
is amended by changing Section 2-1 as follows:
(20 ILCS 830/2-1) (from Ch. 96 1/2, par. 9702-1)
Sec. 2-1. Interagency Wetlands Committee. An Interagency
Wetlands Committee, chaired by the Director of Natural
Resources or his or her representative, is established. The
Directors of the following agencies, or their respective
representatives representative, shall serve as members of the
Committee:
Capital Capitol Development Board,
Department of Agriculture,
Department of Commerce and Community Affairs,
Environmental Protection Agency,
Department of Transportation, and
Historic Preservation Agency.
The Interagency Wetlands Committee shall also include 2
additional persons with relevant expertise designated by the
Director of Natural Resources.
The Interagency Wetlands Committee shall advise the
Director in the administration of this Act. This will
include:
(a) Developing rules and regulations for the
implementation and administration of this Act.
(b) Establishing guidelines for developing
individual Agency Action Plans.
(c) Developing and adopting technical procedures
for the consistent identification, delineation and
evaluation of existing wetlands and quantification of
their functional values and the evaluation of wetland
restoration or creation projects.
(d) Developing a research program for wetland
function, restoration and creation.
(e) Preparing reports, including:
(1) A biennial report to the Governor and the
General Assembly on the impact of State supported
activities on wetlands.
(2) A comprehensive report on the status of
the State's wetland resources, including
recommendations for additional programs, by January
15, 1991.
(f) Development of educational materials to promote
the protection of wetlands.
(Source: P.A. 89-445, eff. 2-7-96; revised 12-2-01.)
Section 14. The Department of State Police Law of the
Civil Administrative Code of Illinois is amended by changing
Sections 2605-302 and 2605-555 as follows:
(20 ILCS 2605/2605-302) (was 20 ILCS 2605/55a in part)
Sec. 2605-302. Arrest reports.
(a) When an individual is arrested, the following
information must be made available to the news media for
inspection and copying:
(1) Information that identifies the individual,
including the name, age, address, and photograph, when
and if available.
(2) Information detailing any charges relating to
the arrest.
(3) The time and location of the arrest.
(4) The name of the investigating or arresting law
enforcement agency.
(5) If the individual is incarcerated, the amount
of any bail or bond.
(6) If the individual is incarcerated, the time and
date that the individual was received, discharged, or
transferred from the arresting agency's custody.
(b) The information required by this Section must be
made available to the news media for inspection and copying
as soon as practicable, but in no event shall the time period
exceed 72 hours from the arrest. The information described
in items (3), (4), (5), and (6) of subsection (a), however,
may be withheld if it is determined that disclosure would (i)
interfere with pending or actually and reasonably
contemplated law enforcement proceedings conducted by any law
enforcement or correctional agency; (ii) endanger the life or
physical safety of law enforcement or correctional personnel
or any other person; or (iii) compromise the security of any
correctional facility.
(c) For the purposes of this Section, the term "news
media" means personnel of a newspaper or other periodical
issued at regular intervals whether in print or electronic
format, a news service whether in print or electronic format,
a radio station, a television station, a television network,
a community antenna television service, or a person or
corporation engaged in making news reels or other motion
picture news for public showing.
(d) Each law enforcement or correctional agency may
charge fees for arrest records, but in no instance may the
fee exceed the actual cost of copying and reproduction. The
fees may not include the cost of the labor used to reproduce
the arrest record.
(e) The provisions of this Section do not supersede the
confidentiality provisions for arrest records of the Juvenile
Court Act of 1987.
(Source: P.A. 91-309, eff. 7-29-99; 92-16, eff. 6-28-01;
incorporates 92-335, eff. 8-10-01; revised 9-17-01.)
(20 ILCS 2605/2605-555)
Sec. 2605-555. Pilot program; Project Exile.
(a) The Department shall establish a Project Exile pilot
program to combat gun violence.
(b) Through the pilot program, the Department, in
coordination with local law enforcement agencies, State's
Attorneys, and United States Attorneys, shall, to the extent
possible, encourage the prosecution in federal court of all
persons who illegally use, attempt to use, or threaten to use
firearms against the person or property of another, of all
persons who use or possess a firearm in connection with a
violation of the Cannabis Control Act or the Illinois
Controlled Substances Act, all persons who have been
convicted of a felony under the laws of this State or any
other jurisdiction who possess any weapon prohibited under
Section 24-1 of the Criminal Code of 1961 or any firearm or
any firearm ammunition, and of all persons who use or possess
a firearm in connection with a violation of an order of
protection issued under the Illinois Domestic Violence Act of
1986 or Article 112A of the Code of Criminal Procedure of
1963 or in connection with the offense of domestic battery.
The program shall also encourage public outreach by law
enforcement agencies.
(c) There is created the Project Exile Fund, a special
fund in the State treasury. Moneys appropriated for the
purposes of Project Exile and moneys from any other private
or public source, including without limitation grants from
the Department of Commerce and Community Affairs, shall be
deposited into the Fund. Moneys in the Fund, subject to
appropriation, may be used by the Department of State Police
to develop and administer the Project Exile pilot program.
(d) The Department shall report to the General Assembly
by March 1, 2003 regarding the implementation and effects of
the Project Exile pilot program and shall by that date make
recommendations to the General Assembly for changes in the
program that the Department deems appropriate.
The requirement for reporting to the General Assembly
shall be satisfied by filing copies of the report with the
Speaker, the Minority Leader, and the Clerk of the House of
Representatives, and with the President, the Minority Leader,
and the Secretary of the Senate, and with the Legislative
Research Unit, as required by Section 3.1 of the General
Assembly Organization Act, and filing such additional copies
with the State Government Report Distribution Center for the
General Assembly as is required under paragraph (t) of
Section 7 of the State Library Act.
(Source: P.A. 92-332, eff. 8-10-01; 92-342, eff. 8-10-01;
revised 10-15-01.)
Section 15. The Criminal Identification Act is amended
by changing Section 5 as follows:
(20 ILCS 2630/5) (from Ch. 38, par. 206-5)
Sec. 5. Arrest reports; expungement.
(a) All policing bodies of this State shall furnish to
the Department, daily, in the form and detail the Department
requires, fingerprints and descriptions of all persons who
are arrested on charges of violating any penal statute of
this State for offenses that are classified as felonies and
Class A or B misdemeanors and of all minors of the age of 10
and over who have been arrested for an offense which would be
a felony if committed by an adult, and may forward such
fingerprints and descriptions for minors arrested for Class A
or B misdemeanors. Moving or nonmoving traffic violations
under the Illinois Vehicle Code shall not be reported except
for violations of Chapter 4, Section 11-204.1, or Section
11-501 of that Code. In addition, conservation offenses, as
defined in the Supreme Court Rule 501(c), that are classified
as Class B misdemeanors shall not be reported.
Whenever an adult or minor prosecuted as an adult, not
having previously been convicted of any criminal offense or
municipal ordinance violation, charged with a violation of a
municipal ordinance or a felony or misdemeanor, is acquitted
or released without being convicted, whether the acquittal or
release occurred before, on, or after the effective date of
this amendatory Act of 1991, the Chief Judge of the circuit
wherein the charge was brought, any judge of that circuit
designated by the Chief Judge, or in counties of less than
3,000,000 inhabitants, the presiding trial judge at the
defendant's trial may upon verified petition of the defendant
order the record of arrest expunged from the official records
of the arresting authority and the Department and order that
the records of the clerk of the circuit court be sealed until
further order of the court upon good cause shown and the name
of the defendant obliterated on the official index required
to be kept by the circuit court clerk under Section 16 of the
Clerks of Courts Act, but the order shall not affect any
index issued by the circuit court clerk before the entry of
the order. The Department may charge the petitioner a fee
equivalent to the cost of processing any order to expunge or
seal the records, and the fee shall be deposited into the
State Police Services Fund. The records of those arrests,
however, that result in a disposition of supervision for any
offense shall not be expunged from the records of the
arresting authority or the Department nor impounded by the
court until 2 years after discharge and dismissal of
supervision. Those records that result from a supervision
for a violation of Section 3-707, 3-708, 3-710, 5-401.3, or
11-503 of the Illinois Vehicle Code or a similar provision of
a local ordinance, or for a violation of Section 12-3.2,
12-15 or 16A-3 of the Criminal Code of 1961, or probation
under Section 10 of the Cannabis Control Act, Section 410 of
the Illinois Controlled Substances Act, Section 12-4.3(b)(1)
and (2) of the Criminal Code of 1961 (as those provisions
existed before their deletion by Public Act 89-313), Section
10-102 of the Illinois Alcoholism and Other Drug Dependency
Act when the judgment of conviction has been vacated, Section
40-10 of the Alcoholism and Other Drug Abuse and Dependency
Act when the judgment of conviction has been vacated, or
Section 10 of the Steroid Control Act shall not be expunged
from the records of the arresting authority nor impounded by
the court until 5 years after termination of probation or
supervision. Those records that result from a supervision
for a violation of Section 11-501 of the Illinois Vehicle
Code or a similar provision of a local ordinance, shall not
be expunged. All records set out above may be ordered by the
court to be expunged from the records of the arresting
authority and impounded by the court after 5 years, but shall
not be expunged by the Department, but shall, on court order
be sealed by the Department and may be disseminated by the
Department only as required by law or to the arresting
authority, the State's Attorney, and the court upon a later
arrest for the same or a similar offense or for the purpose
of sentencing for any subsequent felony. Upon conviction for
any offense, the Department of Corrections shall have access
to all sealed records of the Department pertaining to that
individual.
(a-5) Those records maintained by the Department for
persons arrested prior to their 17th birthday shall be
expunged as provided in Section 5-915 of the Juvenile Court
Act of 1987.
(b) Whenever a person has been convicted of a crime or
of the violation of a municipal ordinance, in the name of a
person whose identity he has stolen or otherwise come into
possession of, the aggrieved person from whom the identity
was stolen or otherwise obtained without authorization, upon
learning of the person having been arrested using his
identity, may, upon verified petition to the chief judge of
the circuit wherein the arrest was made, have a court order
entered nunc pro tunc by the chief judge to correct the
arrest record, conviction record, if any, and all official
records of the arresting authority, the Department, other
criminal justice agencies, the prosecutor, and the trial
court concerning such arrest, if any, by removing his name
from all such records in connection with the arrest and
conviction, if any, and by inserting in the records the name
of the offender, if known or ascertainable, in lieu of the
aggrieved's has name. The records of the clerk of the
circuit court clerk shall be sealed until further order of
the court upon good cause shown and the name of the aggrieved
person obliterated on the official index required to be kept
by the circuit court clerk under Section 16 of the Clerks of
Courts Act, but the order shall not affect any index issued
by the circuit court clerk before the entry of the order.
Nothing in this Section shall limit the Department of State
Police or other criminal justice agencies or prosecutors from
listing under an offender's name the false names he or she
has used. For purposes of this Section, convictions for
moving and nonmoving traffic violations other than
convictions for violations of Chapter 4, Section 11-204.1 or
Section 11-501 of the Illinois Vehicle Code shall not be a
bar to expunging the record of arrest and court records for
violation of a misdemeanor or municipal ordinance.
(c) Whenever a person who has been convicted of an
offense is granted a pardon by the Governor which
specifically authorizes expungement, he may, upon verified
petition to the chief judge of the circuit where the person
had been convicted, any judge of the circuit designated by
the Chief Judge, or in counties of less than 3,000,000
inhabitants, the presiding trial judge at the defendant's
trial, may have a court order entered expunging the record of
arrest from the official records of the arresting authority
and order that the records of the clerk of the circuit court
and the Department be sealed until further order of the court
upon good cause shown or as otherwise provided herein, and
the name of the defendant obliterated from the official index
requested to be kept by the circuit court clerk under Section
16 of the Clerks of Courts Act in connection with the arrest
and conviction for the offense for which he had been pardoned
but the order shall not affect any index issued by the
circuit court clerk before the entry of the order. All
records sealed by the Department may be disseminated by the
Department only as required by law or to the arresting
authority, the State's Attorney, and the court upon a later
arrest for the same or similar offense or for the purpose of
sentencing for any subsequent felony. Upon conviction for
any subsequent offense, the Department of Corrections shall
have access to all sealed records of the Department
pertaining to that individual. Upon entry of the order of
expungement, the clerk of the circuit court shall promptly
mail a copy of the order to the person who was pardoned.
(c-5) Whenever a person has been convicted of criminal
sexual assault, aggravated criminal sexual assault, predatory
criminal sexual assault of a child, criminal sexual abuse, or
aggravated criminal sexual abuse, the victim of that offense
may request that the State's Attorney of the county in which
the conviction occurred file a verified petition with the
presiding trial judge at the defendant's trial to have a
court order entered to seal the records of the clerk of the
circuit court in connection with the proceedings of the trial
court concerning that offense. However, the records of the
arresting authority and the Department of State Police
concerning the offense shall not be sealed. The court, upon
good cause shown, shall make the records of the clerk of the
circuit court in connection with the proceedings of the trial
court concerning the offense available for public inspection.
(d) Notice of the petition for subsections (a), (b), and
(c) shall be served upon the State's Attorney or prosecutor
charged with the duty of prosecuting the offense, the
Department of State Police, the arresting agency and the
chief legal officer of the unit of local government affecting
the arrest. Unless the State's Attorney or prosecutor, the
Department of State Police, the arresting agency or such
chief legal officer objects to the petition within 30 days
from the date of the notice, the court shall enter an order
granting or denying the petition. The clerk of the court
shall promptly mail a copy of the order to the person, the
arresting agency, the prosecutor, the Department of State
Police and such other criminal justice agencies as may be
ordered by the judge.
(e) Nothing herein shall prevent the Department of State
Police from maintaining all records of any person who is
admitted to probation upon terms and conditions and who
fulfills those terms and conditions pursuant to Section 10 of
the Cannabis Control Act, Section 410 of the Illinois
Controlled Substances Act, Section 12-4.3 of the Criminal
Code of 1961, Section 10-102 of the Illinois Alcoholism and
Other Drug Dependency Act, Section 40-10 of the Alcoholism
and Other Drug Abuse and Dependency Act, or Section 10 of the
Steroid Control Act.
(f) No court order issued pursuant to the expungement
provisions of this Section shall become final for purposes of
appeal until 30 days after notice is received by the
Department. Any court order contrary to the provisions of
this Section is void.
(g) Except as otherwise provided in subsection (c-5) of
this Section, the court shall not order the sealing or
expungement of the arrest records and records of the circuit
court clerk of any person granted supervision for or
convicted of any sexual offense committed against a minor
under 18 years of age. For the purposes of this Section,
"sexual offense committed against a minor" includes but is
not limited to the offenses of indecent solicitation of a
child or criminal sexual abuse when the victim of such
offense is under 18 years of age.
(Source: P.A. 90-590, eff. 1-1-00; 91-295, eff. 1-1-00;
91-357, eff. 7-29-99; revised 12-3-01.)
Section 16. The Department of Veterans Affairs Act is
amended by changing Section 2 as follows:
(20 ILCS 2805/2) (from Ch. 126 1/2, par. 67)
Sec. 2. Powers and duties. The Department shall have
the following powers and duties:
To perform such acts at the request of any veteran, or
his or her spouse, surviving spouse or dependents as shall be
reasonably necessary or reasonably incident to obtaining or
endeavoring to obtain for the requester any advantage,
benefit or emolument accruing or due to such person under any
law of the United States, the State of Illinois or any other
state or governmental agency by reason of the service of such
veteran, and in pursuance thereof shall:
1. Contact veterans, their survivors and dependents
and advise them of the benefits of state and federal laws
and assist them in obtaining such benefits;
2. Establish field offices and direct the
activities of the personnel assigned to such offices;
3. Create a volunteer field force of accredited
representatives, representing educational institutions,
labor organizations, veterans organizations, employers,
churches, and farm organizations;
4. Conduct informational and training services;
5. Conduct educational programs through newspapers,
periodicals and radio for the specific purpose of
disseminating information affecting veterans and their
dependents;
6. Coordinate the services and activities of all
state departments having services and resources affecting
veterans and their dependents;
7. Encourage and assist in the coordination of
agencies within counties giving service to veterans and
their dependents;
8. Cooperate with veterans organizations and other
governmental agencies;
9. Make, alter, amend and promulgate reasonable
rules and procedures for the administration of this Act;
and
10. Make and publish annual reports to the Governor
regarding the administration and general operation of the
Department; and.
11. Encourage the State to implement more programs
to address the wide range of issues faced by Persian Gulf
War Veterans, especially those who took part in combat,
by creating an official commission to further study
Persian Gulf War Diseases. The commission shall consist
of 9 members appointed as follows: the Speaker and
Minority Leader of the House of Representatives and the
President and Minority Leader of the Senate shall each
appoint one member from the General Assembly, the
Governor shall appoint 4 members to represent veterans'
organizations, and the Department shall appoint one
member. The commission members shall serve without
compensation.
The Department may accept and hold on behalf of the
State, if for the public interest, a grant, gift, devise or
bequest of money or property to the Department made for the
general benefit of Illinois veterans, including the conduct
of informational and training services by the Department and
other authorized purposes of the Department. The Department
shall cause each grant, gift, devise or bequest to be kept as
a distinct fund and shall invest such funds in the manner
provided by the Public Funds Investment Act, as now or
hereafter amended, and shall make such reports as may be
required by the Comptroller concerning what funds are so held
and the manner in which such funds are invested. The
Department may make grants from these funds for the general
benefit of Illinois veterans. Grants from these funds,
except for the funds established under Sections 2.01a and
2.03, shall be subject to appropriation.
The Department has the power to make grants, from funds
appropriated from the Korean War Veterans National Museum and
Library Fund, to private organizations for the benefit of the
Korean War Veterans National Museum and Library.
(Source: P.A. 92-198, eff. 8-1-01; revised 9-18-01.)
Section 17. The Illinois Development Finance Authority
Act is amended by changing Section 5 as follows:
(20 ILCS 3505/5) (from Ch. 48, par. 850.05)
Sec. 5. All official acts of the Authority shall require
the approval of at least 9 members. It shall be the duty of
the Authority to promote employment within those areas of the
State duly certified from time to time by the Department of
Commerce and Community Affairs as areas of critical labor
surplus. To this end the Authority shall utilize the powers
herein conferred upon it to assist in the development and
construction or acquisition of industrial projects within
such areas of the State.
The Authority is hereby authorized to utilize its powers
with respect to prospective industrial projects to be located
at any given time within any general areas then currently
certified by the Department of Commerce and Community Affairs
as areas of critical labor surplus. In addition, upon being
requested to utilize its powers with respect to a prospective
industrial project to be located outside of any areas then
currently certified as areas of critical labor surplus, the
Authority may refer such request to the Department of
Commerce and Community Affairs for its determination as to
whether the proposed location is within any specific area of
critical labor surplus not hitherto generally certified. If
the proposed location is certified by the Department as being
within an area of critical labor surplus, the Authority may
similarly utilize its powers with respect to such prospective
industrial project.
In evaluating the eligibility of any prospective
industrial project to be located within any area of critical
labor surplus, the Authority shall consider, (1) the
financial responsibility of the prospective applicant and
user, and (2) the relationship between the amount of funds to
be provided by exercise of powers of the Authority and the
degree to which the project (A) will contribute to creation
or retention of employment, including employment in the
construction industry, (B) will contribute to the economic
development of the area in which the industrial project is
located and (C) will produce goods or services for which
there is a need or demand.
(Source: P.A. 92-212, eff. 8-2-01; revised 12-3-01.)
Section 18. The State Finance Act is amended by setting
forth and renumbering multiple versions of Sections 5.545,
5.546, and 6z-51 as follows:
(30 ILCS 105/5.543)
Sec. 5.543. 5.545. The Energy Infrastructure Fund.
(Source: P.A. 92-12, eff. 7-1-01; revised 10-19-01.)
(30 ILCS 105/5.544)
Sec. 5.544. 5.546. The Energy Efficiency Investment Fund.
(Source: P.A. 92-12, eff. 6-30-01; revised 10-19-01.)
(30 ILCS 105/5.545)
Sec. 5.545. The Digital Divide Elimination Fund.
(Source: P.A. 92-22, eff. 6-30-01.)
(30 ILCS 105/5.546)
Sec. 5.546. The Digital Divide Elimination Infrastructure
Fund.
(Source: P.A. 92-22, eff. 6-30-01.)
(30 ILCS 105/5.547)
Sec. 5.547. 5.545. The Medical Special Purposes Trust
Fund.
(Source: P.A. 92-37, eff. 7-1-01; revised 10-19-01.)
(30 ILCS 105/5.548)
Sec. 5.548. 5.545. The Child Support Administrative
Fund.
(Source: P.A. 92-44, eff. 7-1-01; revised 19-19-01.)
(30 ILCS 105/5.552)
Sec. 5.552. 5.545. The ICCB Adult Education Fund.
(Source: P.A. 92-49, eff. 7-9-01; revised 10-19-01.)
(30 ILCS 105/5.553)
Sec. 5.553. 5.545. The Medicaid Buy-In Program Revolving
Fund.
(Source: P.A. 92-163, eff. 7-25-01; revised 10-19-01.)
(30 ILCS 105/5.554)
Sec. 5.554. 5.545. The Korean War Veterans National
Museum and Library Fund.
(Source: P.A. 92-198, eff. 8-1-01; revised 10-19-01.)
(30 ILCS 105/5.555)
Sec. 5.555. 5.545. The Corporate Headquarters Relocation
Assistance Fund.
(Source: P.A. 92-207, eff. 8-1-01; revised 10-19-01.)
(30 ILCS 105/5.556)
Sec. 5.556. 5.545. The Statewide Economic Development
Fund.
(Source: P.A. 92-208, eff. 8-2-01; revised 10-19-01.)
(30 ILCS 105/5.557)
Sec. 5.557. 5.545. The Real Estate Audit Fund.
(Source: P.A. 92-217, eff. 8-2-01; revised 10-19-01.)
(30 ILCS 105/5.558)
Sec. 5.558. 5.545. The Home Inspector Administration
Fund.
(Source: P.A. 92-239, eff. 8-3-01; revised 10-19-01.)
(30 ILCS 105/5.559)
Sec. 5.559. 5.545. 5.546. The Project Exile Fund.
(Source: P.A. 92-332, eff. 8-10-01; 92-342, eff. 8-10-01;
revised 10-19-01.)
(30 ILCS 105/5.560)
Sec. 5.560. 5.545. The Illinois AgriFIRST Program Fund.
(Source: P.A. 92-346, eff. 8-14-01; revised 10-19-01.)
(30 ILCS 105/5.561)
Sec. 5.561. 5.545. The Secretary of State DUI
Administration Fund.
(Source: P.A. 92-418, eff. 8-17-01; revised 10-19-01.)
(30 ILCS 105/5.562)
Sec. 5.562. 5.545. The Illinois Future Teacher Corps
Scholarship Fund.
(Source: P.A. 92-445, eff. 8-17-01; revised 10-19-01.)
(30 ILCS 105/5.563)
Sec. 5.563. 5.545. The Illinois Animal Abuse Fund.
(Source: P.A. 92-454, eff. 1-1-02; revised 10-19-01.)
(30 ILCS 105/5.564)
Sec. 5.564. 5.545. The Marine Corps Scholarship Fund.
(Source: P.A. 92-467, eff. 1-1-02; revised 10-19-01.)
(30 ILCS 105/5.565)
Sec. 5.565. 5.545. The Chicago and Northeast Illinois
District Council of Carpenters Fund.
(Source: P.A. 92-477, eff. 1-1-02; revised 10-19-01.)
(30 ILCS 105/5.566)
Sec. 5.566. 5.545. The Brownfields Site Restoration
Program Fund. Subsections (b) and (c) of Section 5 of this
Act do not apply to this Fund.
(Source: P.A. 92-486, eff. 1-1-02; revised 10-19-01.)
(30 ILCS 105/5.567)
Sec. 5.567. 5.545. The Secretary of State Police Services
Fund.
(Source: P.A. 92-501, eff. 12-19-01; revised 12-28-01.)
(30 ILCS 105/5.568)
(This Section may contain text from a Public Act with a
delayed effective date)
Sec. 5.568. 5.545. The Pet Overpopulation Control Fund.
(Source: P.A. 92-520, eff. 6-1-02; revised 1-16-02.)
(30 ILCS 105/6z-51)
Sec. 6z-51. Budget Stabilization Fund.
(a) The Budget Stabilization Fund, a special fund in the
State Treasury, shall consist of moneys appropriated or
transferred to that Fund, as provided in Section 6z-43 and as
otherwise provided by law.
(b) The State Comptroller may direct the State Treasurer
to transfer moneys from the Budget Stabilization Fund to the
General Revenue Fund in order to meet deficits resulting from
timing variations between disbursements and the receipt of
funds within a fiscal year. Any moneys so borrowed shall be
repaid by June 30 of the fiscal year in which they were
borrowed.
(Source: P.A. 92-11, eff. 6-11-01.)
(30 ILCS 105/6z-54)
Sec. 6z-54. 6z-51. The Energy Infrastructure Fund.
(a) The Energy Infrastructure Fund is created as a
special fund in the State treasury.
(b) Money in the Energy Infrastructure Fund shall, if
and when the State of Illinois issues any bonded indebtedness
for financial assistance to new electric generating
facilities, as provided in Section 605-332 of the Department
of Commerce and Community Affairs Law of the Civil
Administrative Code of Illinois, be set aside and used for
the purpose of paying and discharging annually the principal
and interest on that bonded indebtedness then due and
payable, and for no other purpose.
In addition to other transfers to the General Obligation
Bond Retirement and Interest Fund made pursuant to Section 15
of the General Obligation Bond Act, upon each delivery of
bonds issued for financial assistance to new electric
generating facilities under Section 605-332 of the Department
of Commerce and Community Affairs Law of the Civil
Administrative Code of Illinois, the State Comptroller shall
compute and certify to the State Treasurer the total amount
of principal and interest, and premium, if any, on such bonds
during the then current and each succeeding fiscal year. On
or before the last day of each month, the State Treasurer and
the State Comptroller shall transfer from the Energy
Infrastructure Fund to the General Obligation Bond Retirement
and Interest Fund an amount sufficient to pay the aggregate
of the principal of, interest on, and premium, if any, on the
bonds payable on their next payment date, divided by the
number of monthly transfers occurring between the last
previous payment date (or the delivery date if no payment
date has yet occurred) and the next succeeding payment date.
(c) To the extent that moneys in the Energy
Infrastructure Fund, in the opinion of the Governor and the
Director of the Bureau of the Budget, are in excess of 125%
of the maximum debt service in any fiscal year, such surplus
shall, subject to appropriation, be used by the Department of
Commerce and Community Affairs for financial assistance under
other coal development programs administered by the
Department, in accordance with the rules of the Department or
for other State purposes subject to appropriation.
(Source: P.A. 92-12, eff. 7-1-01; revised 10-17-01.)
(30 ILCS 105/6z-55)
Sec. 6z-55. 6z-51. Statewide Economic Development Fund.
(a) The Statewide Economic Development Fund is created as a
special fund in the State treasury. Moneys in the Fund shall
be used, subject to appropriation, for the purpose of
statewide economic development activities.
(Source: P.A. 92-208, eff. 8-2-01; revised 10-17-01.)
Section 19. The State Real Property Leasing Act is
amended by changing Section 1.5 as follows:
(30 ILCS 562/1.5)
Sec. 1.5. Leasing to tax delinquents prohibited. A
State agency shall not lease any real property to a person
who is delinquent in paying any real property taxes on a
leasehold estate under Section 9-195 of the Property Tax
Code. If a State agency receives notice under Section 21-63
of the Property Tax Code that a lessee of property under the
agency's control is delinquent in paying property taxes, the
agency shall notify the lessee that the lessee has 60 days to
pay the delinquent taxes, plus penalties and interest, if
any, or the lease shall be terminated. If the lessee fails
to submit proof to the agency that the lessee has paid the
taxes, penalties, and interest, the agency shall terminate
the lease. A person whose lease was terminated under this
Section is not allowed to lease State-owned real property or
bid on a lease for State-owned real property for a period of
2 years after the termination of the lease.
Within 60 days after the effective date of this Act and
within 60 days after entering into an agreement to lease
State-owned real property, the State agency leasing the
State-owned real property shall notify the county clerk of
the county in which the real property is located of the name
and mailing address of the lessee.
(Source: P.A. 88-676, eff. 12-14-94; revised 12-13-01.)
Section 20. The State Property Control Act is amended by
changing Section 1.02 as follows:
(30 ILCS 605/1.02) (from Ch. 127, par. 133b3)
Sec. 1.02. "Property" means State owned property and
includes all real estate, with the exception of rights of way
for State water resource and highway improvements, traffic
signs and traffic signals, and with the exception of common
school property; and all tangible personal property with the
exception of properties specifically exempted by the
administrator, provided that any property originally
classified as real property which has been detached from its
structure shall be classified as personal property.
"Property" does not include property owned by the
Illinois Medical District Commission and leased or occupied
by others for purposes permitted under the Illinois Medical
District Act. "Property" also does not include property
owned and held by the Illinois Medical District Commission
for redevelopment.
"Property" does not include that property described under
Section 5 of Public Act 92-371 this amendatory Act of the
92nd General Assembly with respect to depositing the net
proceeds from the sale or exchange of the property as
provided in Section 10 of that this amendatory Act of the
92nd General Assembly.
(Source: P.A. 92-371, eff. 8-15-01; revised 10-9-01.)
Section 21. The Downstate Public Transportation Act is
amended by changing Section 2-2.04 as follows:
(30 ILCS 740/2-2.04) (from Ch. 111 2/3, par. 662.04)
Sec. 2-2.04. "Eligible operating expenses" means all
expenses required for public transportation, including
employee wages and benefits, materials, fuels, supplies,
rental of facilities, taxes other than income taxes, payment
made for debt service (including principal and interest) on
publicly owned equipment or facilities, and any other
expenditure which is an operating expense according to
standard accounting practices for the providing of public
transportation. Eligible operating expenses shall not include
allowances: (a) for depreciation whether funded or unfunded;
(b) for amortization of any intangible costs; (c) for debt
service on capital acquired with the assistance of capital
grant funds provided by the State of Illinois; (d) for
profits or return on investment; (e) for excessive payment to
associated entities; (f) for Comprehensive Employment
Training Act expenses; (g) for costs reimbursed under
Sections 6 and 8 of the "Urban Mass Transportation Act of
1964", as amended; (h) for entertainment expenses; (i) for
charter expenses; (j) for fines and penalties; (k) for
charitable donations; (l) for interest expense on long term
borrowing and debt retirement other than on publicly owned
equipment or facilities; (m) for income taxes; or (n) for
such other expenses as the Department may determine
consistent with federal Department of Transportation
regulations or requirements.
With respect to participants other than any Metro-East
Transit District participant and those receiving federal
research development and demonstration funds pursuant to
Section 6 of the "Urban Mass Transportation Act of 1964", as
amended, during the fiscal year ending June 30, 1979, the
maximum eligible operating expenses for any such participant
in any fiscal year after Fiscal Year 1980 shall be the amount
appropriated for such participant for the fiscal year ending
June 30, 1980, plus in each year a 10% increase over the
maximum established for the preceding fiscal year. For
Fiscal Year 1980 the maximum eligible operating expenses for
any such participant shall be the amount of projected
operating expenses upon which the appropriation for such
participant for Fiscal Year 1980 is based.
With respect to participants receiving federal research
development and demonstration operating assistance funds for
operating assistance pursuant to Section 6 of the "Urban Mass
Transportation Act of 1964", as amended, during the fiscal
year ending June 30, 1979, the maximum eligible operating
expenses for any such participant in any fiscal year after
Fiscal Year 1980 shall not exceed such participant's eligible
operating expenses for the fiscal year ending June 30, 1980,
plus in each year a 10% increase over the maximum established
for the preceding fiscal year. For Fiscal Year 1980, the
maximum eligible operating expenses for any such participant
shall be the eligible operating expenses incurred during such
fiscal year, or projected operating expenses upon which the
appropriation for such participant for the Fiscal Year 1980
is based; whichever is less.
With respect to all participants other than any
Metro-East Transit District participant, the maximum eligible
operating expenses for any such participant in any fiscal
year after Fiscal Year 1985 shall be the amount appropriated
for such participant for the fiscal year ending June 30,
1985, plus in each year a 10% increase over the maximum
established for the preceding year. For Fiscal Year 1985,
the maximum eligible operating expenses for any such
participant shall be the amount of projected operating
expenses upon which the appropriation for such participant
for Fiscal Year 1985 is based.
With respect to any mass transit district participant
that has increased its district boundaries by annexing
counties since 1998 and is maintaining a level of local
financial support, including all income and revenues, equal
to or greater than the level in the State fiscal year ending
June 30, 2001, the maximum eligible operating expenses for
any State fiscal year after 2002 shall be the amount
appropriated for that participant for the State fiscal year
ending June 30, 2002, plus, in each State fiscal year, a 10%
increase over the preceding State fiscal year. For State
fiscal year 2002, the maximum eligible operating expenses for
any such participant shall be the amount of projected
operating expenses upon which the appropriation for that
participant for State fiscal year 2002 is based. For that
participant, eligible operating expenses for State fiscal
year 2002 in excess of the eligible operating expenses for
the State fiscal year ending June 30, 2001, plus 10%, must
be attributed to the provision of services in the newly
annexed counties.
With respect to a participant that receives an initial
appropriation in State fiscal year 2002, the maximum eligible
operating expenses for any State fiscal year after 2003 shall
be the amount appropriated for that participant for the State
fiscal year ending June 30, 2003, plus, in each year, a 10%
increase over the preceding year. For State fiscal year
2003, the maximum eligible operating expenses for any such
participant shall be the amount of projected operating
expenses upon which the appropriation for that participant
for State fiscal year 2003 is based. , or Fiscal Year 2002
(Source: P.A. 92-258, eff. 8-7-01; 92-464, eff. 8-22-01;
revised 10-15-01.)
Section 22. The State Mandates Act is amended by
changing Sections 8.24 and 8.25 as follows:
(30 ILCS 805/8.24)
Sec. 8.24. 8.25. Exempt mandate. Notwithstanding
Sections 6 and 8 of this Act, no reimbursement by the State
is required for the implementation of any mandate created by
Public Act 91-699, 91-722, 91-834, 91-852, 91-870, 91-885,
91-887, or 91-897, 91-939, or 91-954. this amendatory Act of
the 91st General Assembly.
(Source: P.A. 91-699, eff. 1-1-01; 91-722, eff. 6-2-00;
91-834, eff. 1-1-01; 91-852, eff. 6-22-00; 91-870, eff.
6-22-00; 91-885, eff. 7-6-00; 91-887, eff. 7-6-00; 91-897,
eff. 7-6-00; 91-939, eff. 2-1-01; 91-954, eff. 1-1-02; 92-16,
eff. 6-28-01; revised 7-23-01.)
(30 ILCS 805/8.25)
Sec. 8.25. Exempt mandate. Notwithstanding Sections 6
and 8 of this Act, no reimbursement by the State is required
for the implementation of any mandate created by Public Act
92-36, 92-50, 92-52, 92-53, 92-166, 92-281, 92-382, 92-388,
92-416, 92-424, or 92-465. this amendatory Act of the 92nd
General Assembly.
(Source: P.A. 92-36, eff. 6-28-01; 92-50, eff. 7-12-01;
92-52, eff. 7-12-01; 92-53, eff. 7-12-01; 92-166, eff.
1-1-02; 92-281, eff. 8-7-01; 92-382, eff. 8-16-01; 92-388,
eff. 1-1-02; 92-416, eff. 8-17-01; 92-424, eff. 8-17-01;
92-465, eff. 1-1-02; revised 10-17-01.)
Section 23. The Illinois Income Tax Act is amended by
changing Sections 201, 203, 509, and 510 and setting forth
and renumbering multiple versions of Section 507V as follows:
(35 ILCS 5/201) (from Ch. 120, par. 2-201)
Sec. 201. Tax Imposed.
(a) In general. A tax measured by net income is hereby
imposed on every individual, corporation, trust and estate
for each taxable year ending after July 31, 1969 on the
privilege of earning or receiving income in or as a resident
of this State. Such tax shall be in addition to all other
occupation or privilege taxes imposed by this State or by any
municipal corporation or political subdivision thereof.
(b) Rates. The tax imposed by subsection (a) of this
Section shall be determined as follows, except as adjusted by
subsection (d-1):
(1) In the case of an individual, trust or estate,
for taxable years ending prior to July 1, 1989, an amount
equal to 2 1/2% of the taxpayer's net income for the
taxable year.
(2) In the case of an individual, trust or estate,
for taxable years beginning prior to July 1, 1989 and
ending after June 30, 1989, an amount equal to the sum of
(i) 2 1/2% of the taxpayer's net income for the period
prior to July 1, 1989, as calculated under Section 202.3,
and (ii) 3% of the taxpayer's net income for the period
after June 30, 1989, as calculated under Section 202.3.
(3) In the case of an individual, trust or estate,
for taxable years beginning after June 30, 1989, an
amount equal to 3% of the taxpayer's net income for the
taxable year.
(4) (Blank).
(5) (Blank).
(6) In the case of a corporation, for taxable years
ending prior to July 1, 1989, an amount equal to 4% of
the taxpayer's net income for the taxable year.
(7) In the case of a corporation, for taxable years
beginning prior to July 1, 1989 and ending after June 30,
1989, an amount equal to the sum of (i) 4% of the
taxpayer's net income for the period prior to July 1,
1989, as calculated under Section 202.3, and (ii) 4.8% of
the taxpayer's net income for the period after June 30,
1989, as calculated under Section 202.3.
(8) In the case of a corporation, for taxable years
beginning after June 30, 1989, an amount equal to 4.8% of
the taxpayer's net income for the taxable year.
(c) Personal Property Tax Replacement Income Tax.
Beginning on July 1, 1979 and thereafter, in addition to such
income tax, there is also hereby imposed the Personal
Property Tax Replacement Income Tax measured by net income on
every corporation (including Subchapter S corporations),
partnership and trust, for each taxable year ending after
June 30, 1979. Such taxes are imposed on the privilege of
earning or receiving income in or as a resident of this
State. The Personal Property Tax Replacement Income Tax
shall be in addition to the income tax imposed by subsections
(a) and (b) of this Section and in addition to all other
occupation or privilege taxes imposed by this State or by any
municipal corporation or political subdivision thereof.
(d) Additional Personal Property Tax Replacement Income
Tax Rates. The personal property tax replacement income tax
imposed by this subsection and subsection (c) of this Section
in the case of a corporation, other than a Subchapter S
corporation and except as adjusted by subsection (d-1), shall
be an additional amount equal to 2.85% of such taxpayer's net
income for the taxable year, except that beginning on January
1, 1981, and thereafter, the rate of 2.85% specified in this
subsection shall be reduced to 2.5%, and in the case of a
partnership, trust or a Subchapter S corporation shall be an
additional amount equal to 1.5% of such taxpayer's net income
for the taxable year.
(d-1) Rate reduction for certain foreign insurers. In
the case of a foreign insurer, as defined by Section 35A-5 of
the Illinois Insurance Code, whose state or country of
domicile imposes on insurers domiciled in Illinois a
retaliatory tax (excluding any insurer whose premiums from
reinsurance assumed are 50% or more of its total insurance
premiums as determined under paragraph (2) of subsection (b)
of Section 304, except that for purposes of this
determination premiums from reinsurance do not include
premiums from inter-affiliate reinsurance arrangements),
beginning with taxable years ending on or after December 31,
1999, the sum of the rates of tax imposed by subsections (b)
and (d) shall be reduced (but not increased) to the rate at
which the total amount of tax imposed under this Act, net of
all credits allowed under this Act, shall equal (i) the total
amount of tax that would be imposed on the foreign insurer's
net income allocable to Illinois for the taxable year by such
foreign insurer's state or country of domicile if that net
income were subject to all income taxes and taxes measured by
net income imposed by such foreign insurer's state or country
of domicile, net of all credits allowed or (ii) a rate of
zero if no such tax is imposed on such income by the foreign
insurer's state of domicile. For the purposes of this
subsection (d-1), an inter-affiliate includes a mutual
insurer under common management.
(1) For the purposes of subsection (d-1), in no
event shall the sum of the rates of tax imposed by
subsections (b) and (d) be reduced below the rate at
which the sum of:
(A) the total amount of tax imposed on such
foreign insurer under this Act for a taxable year,
net of all credits allowed under this Act, plus
(B) the privilege tax imposed by Section 409
of the Illinois Insurance Code, the fire insurance
company tax imposed by Section 12 of the Fire
Investigation Act, and the fire department taxes
imposed under Section 11-10-1 of the Illinois
Municipal Code,
equals 1.25% of the net taxable premiums written for the
taxable year, as described by subsection (1) of Section
409 of the Illinois Insurance Code. This paragraph will
in no event increase the rates imposed under subsections
(b) and (d).
(2) Any reduction in the rates of tax imposed by
this subsection shall be applied first against the rates
imposed by subsection (b) and only after the tax imposed
by subsection (a) net of all credits allowed under this
Section other than the credit allowed under subsection
(i) has been reduced to zero, against the rates imposed
by subsection (d).
This subsection (d-1) is exempt from the provisions of
Section 250.
(e) Investment credit. A taxpayer shall be allowed a
credit against the Personal Property Tax Replacement Income
Tax for investment in qualified property.
(1) A taxpayer shall be allowed a credit equal to
.5% of the basis of qualified property placed in service
during the taxable year, provided such property is placed
in service on or after July 1, 1984. There shall be
allowed an additional credit equal to .5% of the basis of
qualified property placed in service during the taxable
year, provided such property is placed in service on or
after July 1, 1986, and the taxpayer's base employment
within Illinois has increased by 1% or more over the
preceding year as determined by the taxpayer's employment
records filed with the Illinois Department of Employment
Security. Taxpayers who are new to Illinois shall be
deemed to have met the 1% growth in base employment for
the first year in which they file employment records with
the Illinois Department of Employment Security. The
provisions added to this Section by Public Act 85-1200
(and restored by Public Act 87-895) shall be construed as
declaratory of existing law and not as a new enactment.
If, in any year, the increase in base employment within
Illinois over the preceding year is less than 1%, the
additional credit shall be limited to that percentage
times a fraction, the numerator of which is .5% and the
denominator of which is 1%, but shall not exceed .5%.
The investment credit shall not be allowed to the extent
that it would reduce a taxpayer's liability in any tax
year below zero, nor may any credit for qualified
property be allowed for any year other than the year in
which the property was placed in service in Illinois. For
tax years ending on or after December 31, 1987, and on or
before December 31, 1988, the credit shall be allowed for
the tax year in which the property is placed in service,
or, if the amount of the credit exceeds the tax liability
for that year, whether it exceeds the original liability
or the liability as later amended, such excess may be
carried forward and applied to the tax liability of the 5
taxable years following the excess credit years if the
taxpayer (i) makes investments which cause the creation
of a minimum of 2,000 full-time equivalent jobs in
Illinois, (ii) is located in an enterprise zone
established pursuant to the Illinois Enterprise Zone Act
and (iii) is certified by the Department of Commerce and
Community Affairs as complying with the requirements
specified in clause (i) and (ii) by July 1, 1986. The
Department of Commerce and Community Affairs shall notify
the Department of Revenue of all such certifications
immediately. For tax years ending after December 31,
1988, the credit shall be allowed for the tax year in
which the property is placed in service, or, if the
amount of the credit exceeds the tax liability for that
year, whether it exceeds the original liability or the
liability as later amended, such excess may be carried
forward and applied to the tax liability of the 5 taxable
years following the excess credit years. The credit shall
be applied to the earliest year for which there is a
liability. If there is credit from more than one tax year
that is available to offset a liability, earlier credit
shall be applied first.
(2) The term "qualified property" means property
which:
(A) is tangible, whether new or used,
including buildings and structural components of
buildings and signs that are real property, but not
including land or improvements to real property that
are not a structural component of a building such as
landscaping, sewer lines, local access roads,
fencing, parking lots, and other appurtenances;
(B) is depreciable pursuant to Section 167 of
the Internal Revenue Code, except that "3-year
property" as defined in Section 168(c)(2)(A) of that
Code is not eligible for the credit provided by this
subsection (e);
(C) is acquired by purchase as defined in
Section 179(d) of the Internal Revenue Code;
(D) is used in Illinois by a taxpayer who is
primarily engaged in manufacturing, or in mining
coal or fluorite, or in retailing; and
(E) has not previously been used in Illinois
in such a manner and by such a person as would
qualify for the credit provided by this subsection
(e) or subsection (f).
(3) For purposes of this subsection (e),
"manufacturing" means the material staging and production
of tangible personal property by procedures commonly
regarded as manufacturing, processing, fabrication, or
assembling which changes some existing material into new
shapes, new qualities, or new combinations. For purposes
of this subsection (e) the term "mining" shall have the
same meaning as the term "mining" in Section 613(c) of
the Internal Revenue Code. For purposes of this
subsection (e), the term "retailing" means the sale of
tangible personal property or services rendered in
conjunction with the sale of tangible consumer goods or
commodities.
(4) The basis of qualified property shall be the
basis used to compute the depreciation deduction for
federal income tax purposes.
(5) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in Illinois by the taxpayer, the amount
of such increase shall be deemed property placed in
service on the date of such increase in basis.
(6) The term "placed in service" shall have the
same meaning as under Section 46 of the Internal Revenue
Code.
(7) If during any taxable year, any property ceases
to be qualified property in the hands of the taxpayer
within 48 months after being placed in service, or the
situs of any qualified property is moved outside Illinois
within 48 months after being placed in service, the
Personal Property Tax Replacement Income Tax for such
taxable year shall be increased. Such increase shall be
determined by (i) recomputing the investment credit which
would have been allowed for the year in which credit for
such property was originally allowed by eliminating such
property from such computation and, (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (7), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(8) Unless the investment credit is extended by
law, the basis of qualified property shall not include
costs incurred after December 31, 2003, except for costs
incurred pursuant to a binding contract entered into on
or before December 31, 2003.
(9) Each taxable year ending before December 31,
2000, a partnership may elect to pass through to its
partners the credits to which the partnership is entitled
under this subsection (e) for the taxable year. A
partner may use the credit allocated to him or her under
this paragraph only against the tax imposed in
subsections (c) and (d) of this Section. If the
partnership makes that election, those credits shall be
allocated among the partners in the partnership in
accordance with the rules set forth in Section 704(b) of
the Internal Revenue Code, and the rules promulgated
under that Section, and the allocated amount of the
credits shall be allowed to the partners for that taxable
year. The partnership shall make this election on its
Personal Property Tax Replacement Income Tax return for
that taxable year. The election to pass through the
credits shall be irrevocable.
For taxable years ending on or after December 31,
2000, a partner that qualifies its partnership for a
subtraction under subparagraph (I) of paragraph (2) of
subsection (d) of Section 203 or a shareholder that
qualifies a Subchapter S corporation for a subtraction
under subparagraph (S) of paragraph (2) of subsection (b)
of Section 203 shall be allowed a credit under this
subsection (e) equal to its share of the credit earned
under this subsection (e) during the taxable year by the
partnership or Subchapter S corporation, determined in
accordance with the determination of income and
distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code. This
paragraph is exempt from the provisions of Section 250.
(f) Investment credit; Enterprise Zone.
(1) A taxpayer shall be allowed a credit against
the tax imposed by subsections (a) and (b) of this
Section for investment in qualified property which is
placed in service in an Enterprise Zone created pursuant
to the Illinois Enterprise Zone Act. For partners,
shareholders of Subchapter S corporations, and owners of
limited liability companies, if the liability company is
treated as a partnership for purposes of federal and
State income taxation, there shall be allowed a credit
under this subsection (f) to be determined in accordance
with the determination of income and distributive share
of income under Sections 702 and 704 and Subchapter S of
the Internal Revenue Code. The credit shall be .5% of
the basis for such property. The credit shall be
available only in the taxable year in which the property
is placed in service in the Enterprise Zone and shall not
be allowed to the extent that it would reduce a
taxpayer's liability for the tax imposed by subsections
(a) and (b) of this Section to below zero. For tax years
ending on or after December 31, 1985, the credit shall be
allowed for the tax year in which the property is placed
in service, or, if the amount of the credit exceeds the
tax liability for that year, whether it exceeds the
original liability or the liability as later amended,
such excess may be carried forward and applied to the tax
liability of the 5 taxable years following the excess
credit year. The credit shall be applied to the earliest
year for which there is a liability. If there is credit
from more than one tax year that is available to offset a
liability, the credit accruing first in time shall be
applied first.
(2) The term qualified property means property
which:
(A) is tangible, whether new or used,
including buildings and structural components of
buildings;
(B) is depreciable pursuant to Section 167 of
the Internal Revenue Code, except that "3-year
property" as defined in Section 168(c)(2)(A) of that
Code is not eligible for the credit provided by this
subsection (f);
(C) is acquired by purchase as defined in
Section 179(d) of the Internal Revenue Code;
(D) is used in the Enterprise Zone by the
taxpayer; and
(E) has not been previously used in Illinois
in such a manner and by such a person as would
qualify for the credit provided by this subsection
(f) or subsection (e).
(3) The basis of qualified property shall be the
basis used to compute the depreciation deduction for
federal income tax purposes.
(4) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in the Enterprise Zone by the taxpayer,
the amount of such increase shall be deemed property
placed in service on the date of such increase in basis.
(5) The term "placed in service" shall have the
same meaning as under Section 46 of the Internal Revenue
Code.
(6) If during any taxable year, any property ceases
to be qualified property in the hands of the taxpayer
within 48 months after being placed in service, or the
situs of any qualified property is moved outside the
Enterprise Zone within 48 months after being placed in
service, the tax imposed under subsections (a) and (b) of
this Section for such taxable year shall be increased.
Such increase shall be determined by (i) recomputing the
investment credit which would have been allowed for the
year in which credit for such property was originally
allowed by eliminating such property from such
computation, and (ii) subtracting such recomputed credit
from the amount of credit previously allowed. For the
purposes of this paragraph (6), a reduction of the basis
of qualified property resulting from a redetermination of
the purchase price shall be deemed a disposition of
qualified property to the extent of such reduction.
(g) Jobs Tax Credit; Enterprise Zone and Foreign Trade
Zone or Sub-Zone.
(1) A taxpayer conducting a trade or business in an
enterprise zone or a High Impact Business designated by
the Department of Commerce and Community Affairs
conducting a trade or business in a federally designated
Foreign Trade Zone or Sub-Zone shall be allowed a credit
against the tax imposed by subsections (a) and (b) of
this Section in the amount of $500 per eligible employee
hired to work in the zone during the taxable year.
(2) To qualify for the credit:
(A) the taxpayer must hire 5 or more eligible
employees to work in an enterprise zone or federally
designated Foreign Trade Zone or Sub-Zone during the
taxable year;
(B) the taxpayer's total employment within the
enterprise zone or federally designated Foreign
Trade Zone or Sub-Zone must increase by 5 or more
full-time employees beyond the total employed in
that zone at the end of the previous tax year for
which a jobs tax credit under this Section was
taken, or beyond the total employed by the taxpayer
as of December 31, 1985, whichever is later; and
(C) the eligible employees must be employed
180 consecutive days in order to be deemed hired for
purposes of this subsection.
(3) An "eligible employee" means an employee who
is:
(A) Certified by the Department of Commerce
and Community Affairs as "eligible for services"
pursuant to regulations promulgated in accordance
with Title II of the Job Training Partnership Act,
Training Services for the Disadvantaged or Title III
of the Job Training Partnership Act, Employment and
Training Assistance for Dislocated Workers Program.
(B) Hired after the enterprise zone or
federally designated Foreign Trade Zone or Sub-Zone
was designated or the trade or business was located
in that zone, whichever is later.
(C) Employed in the enterprise zone or Foreign
Trade Zone or Sub-Zone. An employee is employed in
an enterprise zone or federally designated Foreign
Trade Zone or Sub-Zone if his services are rendered
there or it is the base of operations for the
services performed.
(D) A full-time employee working 30 or more
hours per week.
(4) For tax years ending on or after December 31,
1985 and prior to December 31, 1988, the credit shall be
allowed for the tax year in which the eligible employees
are hired. For tax years ending on or after December 31,
1988, the credit shall be allowed for the tax year
immediately following the tax year in which the eligible
employees are hired. If the amount of the credit exceeds
the tax liability for that year, whether it exceeds the
original liability or the liability as later amended,
such excess may be carried forward and applied to the tax
liability of the 5 taxable years following the excess
credit year. The credit shall be applied to the earliest
year for which there is a liability. If there is credit
from more than one tax year that is available to offset a
liability, earlier credit shall be applied first.
(5) The Department of Revenue shall promulgate such
rules and regulations as may be deemed necessary to carry
out the purposes of this subsection (g).
(6) The credit shall be available for eligible
employees hired on or after January 1, 1986.
(h) Investment credit; High Impact Business.
(1) Subject to subsections (b) and (b-5) of Section
5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
be allowed a credit against the tax imposed by
subsections (a) and (b) of this Section for investment in
qualified property which is placed in service by a
Department of Commerce and Community Affairs designated
High Impact Business. The credit shall be .5% of the
basis for such property. The credit shall not be
available (i) until the minimum investments in qualified
property set forth in subdivision (a)(3)(A) of Section
5.5 of the Illinois Enterprise Zone Act have been
satisfied or (ii) until the time authorized in subsection
(b-5) of the Illinois Enterprise Zone Act for entities
designated as High Impact Businesses under subdivisions
(a)(3)(B), (a)(3)(C), and (a)(3)(D) of Section 5.5 of the
Illinois Enterprise Zone Act, and shall not be allowed to
the extent that it would reduce a taxpayer's liability
for the tax imposed by subsections (a) and (b) of this
Section to below zero. The credit applicable to such
investments shall be taken in the taxable year in which
such investments have been completed. The credit for
additional investments beyond the minimum investment by a
designated high impact business authorized under
subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act shall be available only in the
taxable year in which the property is placed in service
and shall not be allowed to the extent that it would
reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero.
For tax years ending on or after December 31, 1987, the
credit shall be allowed for the tax year in which the
property is placed in service, or, if the amount of the
credit exceeds the tax liability for that year, whether
it exceeds the original liability or the liability as
later amended, such excess may be carried forward and
applied to the tax liability of the 5 taxable years
following the excess credit year. The credit shall be
applied to the earliest year for which there is a
liability. If there is credit from more than one tax
year that is available to offset a liability, the credit
accruing first in time shall be applied first.
Changes made in this subdivision (h)(1) by Public
Act 88-670 restore changes made by Public Act 85-1182 and
reflect existing law.
(2) The term qualified property means property
which:
(A) is tangible, whether new or used,
including buildings and structural components of
buildings;
(B) is depreciable pursuant to Section 167 of
the Internal Revenue Code, except that "3-year
property" as defined in Section 168(c)(2)(A) of that
Code is not eligible for the credit provided by this
subsection (h);
(C) is acquired by purchase as defined in
Section 179(d) of the Internal Revenue Code; and
(D) is not eligible for the Enterprise Zone
Investment Credit provided by subsection (f) of this
Section.
(3) The basis of qualified property shall be the
basis used to compute the depreciation deduction for
federal income tax purposes.
(4) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in a federally designated Foreign Trade
Zone or Sub-Zone located in Illinois by the taxpayer, the
amount of such increase shall be deemed property placed
in service on the date of such increase in basis.
(5) The term "placed in service" shall have the
same meaning as under Section 46 of the Internal Revenue
Code.
(6) If during any taxable year ending on or before
December 31, 1996, any property ceases to be qualified
property in the hands of the taxpayer within 48 months
after being placed in service, or the situs of any
qualified property is moved outside Illinois within 48
months after being placed in service, the tax imposed
under subsections (a) and (b) of this Section for such
taxable year shall be increased. Such increase shall be
determined by (i) recomputing the investment credit which
would have been allowed for the year in which credit for
such property was originally allowed by eliminating such
property from such computation, and (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (6), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(7) Beginning with tax years ending after December
31, 1996, if a taxpayer qualifies for the credit under
this subsection (h) and thereby is granted a tax
abatement and the taxpayer relocates its entire facility
in violation of the explicit terms and length of the
contract under Section 18-183 of the Property Tax Code,
the tax imposed under subsections (a) and (b) of this
Section shall be increased for the taxable year in which
the taxpayer relocated its facility by an amount equal to
the amount of credit received by the taxpayer under this
subsection (h).
(i) Credit for Personal Property Tax Replacement Income
Tax. A credit shall be allowed against the tax imposed by
subsections (a) and (b) of this Section for the tax imposed
by subsections (c) and (d) of this Section. This credit
shall be computed by multiplying the tax imposed by
subsections (c) and (d) of this Section by a fraction, the
numerator of which is base income allocable to Illinois and
the denominator of which is Illinois base income, and further
multiplying the product by the tax rate imposed by
subsections (a) and (b) of this Section.
Any credit earned on or after December 31, 1986 under
this subsection which is unused in the year the credit is
computed because it exceeds the tax liability imposed by
subsections (a) and (b) for that year (whether it exceeds the
original liability or the liability as later amended) may be
carried forward and applied to the tax liability imposed by
subsections (a) and (b) of the 5 taxable years following the
excess credit year. This credit shall be applied first to
the earliest year for which there is a liability. If there
is a credit under this subsection from more than one tax year
that is available to offset a liability the earliest credit
arising under this subsection shall be applied first.
If, during any taxable year ending on or after December
31, 1986, the tax imposed by subsections (c) and (d) of this
Section for which a taxpayer has claimed a credit under this
subsection (i) is reduced, the amount of credit for such tax
shall also be reduced. Such reduction shall be determined by
recomputing the credit to take into account the reduced tax
imposed by subsections subsection (c) and (d). If any
portion of the reduced amount of credit has been carried to a
different taxable year, an amended return shall be filed for
such taxable year to reduce the amount of credit claimed.
(j) Training expense credit. Beginning with tax years
ending on or after December 31, 1986, a taxpayer shall be
allowed a credit against the tax imposed by subsections
subsection (a) and (b) under this Section for all amounts
paid or accrued, on behalf of all persons employed by the
taxpayer in Illinois or Illinois residents employed outside
of Illinois by a taxpayer, for educational or vocational
training in semi-technical or technical fields or
semi-skilled or skilled fields, which were deducted from
gross income in the computation of taxable income. The
credit against the tax imposed by subsections (a) and (b)
shall be 1.6% of such training expenses. For partners,
shareholders of subchapter S corporations, and owners of
limited liability companies, if the liability company is
treated as a partnership for purposes of federal and State
income taxation, there shall be allowed a credit under this
subsection (j) to be determined in accordance with the
determination of income and distributive share of income
under Sections 702 and 704 and subchapter S of the Internal
Revenue Code.
Any credit allowed under this subsection which is unused
in the year the credit is earned may be carried forward to
each of the 5 taxable years following the year for which the
credit is first computed until it is used. This credit shall
be applied first to the earliest year for which there is a
liability. If there is a credit under this subsection from
more than one tax year that is available to offset a
liability the earliest credit arising under this subsection
shall be applied first.
(k) Research and development credit.
Beginning with tax years ending after July 1, 1990, a
taxpayer shall be allowed a credit against the tax imposed by
subsections (a) and (b) of this Section for increasing
research activities in this State. The credit allowed
against the tax imposed by subsections (a) and (b) shall be
equal to 6 1/2% of the qualifying expenditures for increasing
research activities in this State. For partners,
shareholders of subchapter S corporations, and owners of
limited liability companies, if the liability company is
treated as a partnership for purposes of federal and State
income taxation, there shall be allowed a credit under this
subsection to be determined in accordance with the
determination of income and distributive share of income
under Sections 702 and 704 and subchapter S of the Internal
Revenue Code.
For purposes of this subsection, "qualifying
expenditures" means the qualifying expenditures as defined
for the federal credit for increasing research activities
which would be allowable under Section 41 of the Internal
Revenue Code and which are conducted in this State,
"qualifying expenditures for increasing research activities
in this State" means the excess of qualifying expenditures
for the taxable year in which incurred over qualifying
expenditures for the base period, "qualifying expenditures
for the base period" means the average of the qualifying
expenditures for each year in the base period, and "base
period" means the 3 taxable years immediately preceding the
taxable year for which the determination is being made.
Any credit in excess of the tax liability for the taxable
year may be carried forward. A taxpayer may elect to have the
unused credit shown on its final completed return carried
over as a credit against the tax liability for the following
5 taxable years or until it has been fully used, whichever
occurs first.
If an unused credit is carried forward to a given year
from 2 or more earlier years, that credit arising in the
earliest year will be applied first against the tax liability
for the given year. If a tax liability for the given year
still remains, the credit from the next earliest year will
then be applied, and so on, until all credits have been used
or no tax liability for the given year remains. Any
remaining unused credit or credits then will be carried
forward to the next following year in which a tax liability
is incurred, except that no credit can be carried forward to
a year which is more than 5 years after the year in which the
expense for which the credit is given was incurred.
Unless extended by law, the credit shall not include
costs incurred after December 31, 2004, except for costs
incurred pursuant to a binding contract entered into on or
before December 31, 2004.
No inference shall be drawn from this amendatory Act of
the 91st General Assembly in construing this Section for
taxable years beginning before January 1, 1999.
(l) Environmental Remediation Tax Credit.
(i) For tax years ending after December 31, 1997
and on or before December 31, 2001, a taxpayer shall be
allowed a credit against the tax imposed by subsections
(a) and (b) of this Section for certain amounts paid for
unreimbursed eligible remediation costs, as specified in
this subsection. For purposes of this Section,
"unreimbursed eligible remediation costs" means costs
approved by the Illinois Environmental Protection Agency
("Agency") under Section 58.14 of the Environmental
Protection Act that were paid in performing environmental
remediation at a site for which a No Further Remediation
Letter was issued by the Agency and recorded under
Section 58.10 of the Environmental Protection Act. The
credit must be claimed for the taxable year in which
Agency approval of the eligible remediation costs is
granted. The credit is not available to any taxpayer if
the taxpayer or any related party caused or contributed
to, in any material respect, a release of regulated
substances on, in, or under the site that was identified
and addressed by the remedial action pursuant to the Site
Remediation Program of the Environmental Protection Act.
After the Pollution Control Board rules are adopted
pursuant to the Illinois Administrative Procedure Act for
the administration and enforcement of Section 58.9 of the
Environmental Protection Act, determinations as to credit
availability for purposes of this Section shall be made
consistent with those rules. For purposes of this
Section, "taxpayer" includes a person whose tax
attributes the taxpayer has succeeded to under Section
381 of the Internal Revenue Code and "related party"
includes the persons disallowed a deduction for losses by
paragraphs (b), (c), and (f)(1) of Section 267 of the
Internal Revenue Code by virtue of being a related
taxpayer, as well as any of its partners. The credit
allowed against the tax imposed by subsections (a) and
(b) shall be equal to 25% of the unreimbursed eligible
remediation costs in excess of $100,000 per site, except
that the $100,000 threshold shall not apply to any site
contained in an enterprise zone as determined by the
Department of Commerce and Community Affairs. The total
credit allowed shall not exceed $40,000 per year with a
maximum total of $150,000 per site. For partners and
shareholders of subchapter S corporations, there shall be
allowed a credit under this subsection to be determined
in accordance with the determination of income and
distributive share of income under Sections 702 and 704
and subchapter S of the Internal Revenue Code.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used.
The term "unused credit" does not include any amounts of
unreimbursed eligible remediation costs in excess of the
maximum credit per site authorized under paragraph (i).
This credit shall be applied first to the earliest year
for which there is a liability. If there is a credit
under this subsection from more than one tax year that is
available to offset a liability, the earliest credit
arising under this subsection shall be applied first. A
credit allowed under this subsection may be sold to a
buyer as part of a sale of all or part of the remediation
site for which the credit was granted. The purchaser of
a remediation site and the tax credit shall succeed to
the unused credit and remaining carry-forward period of
the seller. To perfect the transfer, the assignor shall
record the transfer in the chain of title for the site
and provide written notice to the Director of the
Illinois Department of Revenue of the assignor's intent
to sell the remediation site and the amount of the tax
credit to be transferred as a portion of the sale. In no
event may a credit be transferred to any taxpayer if the
taxpayer or a related party would not be eligible under
the provisions of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(m) Education expense credit.
Beginning with tax years ending after December 31, 1999,
a taxpayer who is the custodian of one or more qualifying
pupils shall be allowed a credit against the tax imposed by
subsections (a) and (b) of this Section for qualified
education expenses incurred on behalf of the qualifying
pupils. The credit shall be equal to 25% of qualified
education expenses, but in no event may the total credit
under this Section claimed by a family that is the custodian
of qualifying pupils exceed $500. In no event shall a credit
under this subsection reduce the taxpayer's liability under
this Act to less than zero. This subsection is exempt from
the provisions of Section 250 of this Act.
For purposes of this subsection:;
"Qualifying pupils" means individuals who (i) are
residents of the State of Illinois, (ii) are under the age of
21 at the close of the school year for which a credit is
sought, and (iii) during the school year for which a credit
is sought were full-time pupils enrolled in a kindergarten
through twelfth grade education program at any school, as
defined in this subsection.
"Qualified education expense" means the amount incurred
on behalf of a qualifying pupil in excess of $250 for
tuition, book fees, and lab fees at the school in which the
pupil is enrolled during the regular school year.
"School" means any public or nonpublic elementary or
secondary school in Illinois that is in compliance with Title
VI of the Civil Rights Act of 1964 and attendance at which
satisfies the requirements of Section 26-1 of the School
Code, except that nothing shall be construed to require a
child to attend any particular public or nonpublic school to
qualify for the credit under this Section.
"Custodian" means, with respect to qualifying pupils, an
Illinois resident who is a parent, the parents, a legal
guardian, or the legal guardians of the qualifying pupils.
(Source: P.A. 91-9, eff. 1-1-00; 91-357, eff. 7-29-99;
91-643, eff. 8-20-99; 91-644, eff. 8-20-99; 91-860, eff.
6-22-00; 91-913, eff. 1-1-01; 92-12, eff. 7-1-01; 92-16, eff.
6-28-01; revised 12-3-01.)
(35 ILCS 5/203) (from Ch. 120, par. 2-203)
Sec. 203. Base income defined.
(a) Individuals.
(1) In general. In the case of an individual, base
income means an amount equal to the taxpayer's adjusted
gross income for the taxable year as modified by
paragraph (2).
(2) Modifications. The adjusted gross income
referred to in paragraph (1) shall be modified by adding
thereto the sum of the following amounts:
(A) An amount equal to all amounts paid or
accrued to the taxpayer as interest or dividends
during the taxable year to the extent excluded from
gross income in the computation of adjusted gross
income, except stock dividends of qualified public
utilities described in Section 305(e) of the
Internal Revenue Code;
(B) An amount equal to the amount of tax
imposed by this Act to the extent deducted from
gross income in the computation of adjusted gross
income for the taxable year;
(C) An amount equal to the amount received
during the taxable year as a recovery or refund of
real property taxes paid with respect to the
taxpayer's principal residence under the Revenue Act
of 1939 and for which a deduction was previously
taken under subparagraph (L) of this paragraph (2)
prior to July 1, 1991, the retrospective application
date of Article 4 of Public Act 87-17. In the case
of multi-unit or multi-use structures and farm
dwellings, the taxes on the taxpayer's principal
residence shall be that portion of the total taxes
for the entire property which is attributable to
such principal residence;
(D) An amount equal to the amount of the
capital gain deduction allowable under the Internal
Revenue Code, to the extent deducted from gross
income in the computation of adjusted gross income;
(D-5) An amount, to the extent not included in
adjusted gross income, equal to the amount of money
withdrawn by the taxpayer in the taxable year from a
medical care savings account and the interest earned
on the account in the taxable year of a withdrawal
pursuant to subsection (b) of Section 20 of the
Medical Care Savings Account Act or subsection (b)
of Section 20 of the Medical Care Savings Account
Act of 2000; and
(D-10) For taxable years ending after December
31, 1997, an amount equal to any eligible
remediation costs that the individual deducted in
computing adjusted gross income and for which the
individual claims a credit under subsection (l) of
Section 201;
and by deducting from the total so obtained the sum of
the following amounts:
(E) For taxable years ending before December
31, 2001, any amount included in such total in
respect of any compensation (including but not
limited to any compensation paid or accrued to a
serviceman while a prisoner of war or missing in
action) paid to a resident by reason of being on
active duty in the Armed Forces of the United States
and in respect of any compensation paid or accrued
to a resident who as a governmental employee was a
prisoner of war or missing in action, and in respect
of any compensation paid to a resident in 1971 or
thereafter for annual training performed pursuant to
Sections 502 and 503, Title 32, United States Code
as a member of the Illinois National Guard. For
taxable years ending on or after December 31, 2001,
any amount included in such total in respect of any
compensation (including but not limited to any
compensation paid or accrued to a serviceman while a
prisoner of war or missing in action) paid to a
resident by reason of being a member of any
component of the Armed Forces of the United States
and in respect of any compensation paid or accrued
to a resident who as a governmental employee was a
prisoner of war or missing in action, and in respect
of any compensation paid to a resident in 2001 or
thereafter by reason of being a member of the
Illinois National Guard. The provisions of this
amendatory Act of the 92nd General Assembly are
exempt from the provisions of Section 250;
(F) An amount equal to all amounts included in
such total pursuant to the provisions of Sections
402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
408 of the Internal Revenue Code, or included in
such total as distributions under the provisions of
any retirement or disability plan for employees of
any governmental agency or unit, or retirement
payments to retired partners, which payments are
excluded in computing net earnings from self
employment by Section 1402 of the Internal Revenue
Code and regulations adopted pursuant thereto;
(G) The valuation limitation amount;
(H) An amount equal to the amount of any tax
imposed by this Act which was refunded to the
taxpayer and included in such total for the taxable
year;
(I) An amount equal to all amounts included in
such total pursuant to the provisions of Section 111
of the Internal Revenue Code as a recovery of items
previously deducted from adjusted gross income in
the computation of taxable income;
(J) An amount equal to those dividends
included in such total which were paid by a
corporation which conducts business operations in an
Enterprise Zone or zones created under the Illinois
Enterprise Zone Act, and conducts substantially all
of its operations in an Enterprise Zone or zones;
(K) An amount equal to those dividends
included in such total that were paid by a
corporation that conducts business operations in a
federally designated Foreign Trade Zone or Sub-Zone
and that is designated a High Impact Business
located in Illinois; provided that dividends
eligible for the deduction provided in subparagraph
(J) of paragraph (2) of this subsection shall not be
eligible for the deduction provided under this
subparagraph (K);
(L) For taxable years ending after December
31, 1983, an amount equal to all social security
benefits and railroad retirement benefits included
in such total pursuant to Sections 72(r) and 86 of
the Internal Revenue Code;
(M) With the exception of any amounts
subtracted under subparagraph (N), an amount equal
to the sum of all amounts disallowed as deductions
by (i) Sections 171(a) (2), and 265(2) of the
Internal Revenue Code of 1954, as now or hereafter
amended, and all amounts of expenses allocable to
interest and disallowed as deductions by Section
265(1) of the Internal Revenue Code of 1954, as now
or hereafter amended; and (ii) for taxable years
ending on or after August 13, 1999, Sections
171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
Internal Revenue Code; the provisions of this
subparagraph are exempt from the provisions of
Section 250;
(N) An amount equal to all amounts included in
such total which are exempt from taxation by this
State either by reason of its statutes or
Constitution or by reason of the Constitution,
treaties or statutes of the United States; provided
that, in the case of any statute of this State that
exempts income derived from bonds or other
obligations from the tax imposed under this Act, the
amount exempted shall be the interest net of bond
premium amortization;
(O) An amount equal to any contribution made
to a job training project established pursuant to
the Tax Increment Allocation Redevelopment Act;
(P) An amount equal to the amount of the
deduction used to compute the federal income tax
credit for restoration of substantial amounts held
under claim of right for the taxable year pursuant
to Section 1341 of the Internal Revenue Code of
1986;
(Q) An amount equal to any amounts included in
such total, received by the taxpayer as an
acceleration in the payment of life, endowment or
annuity benefits in advance of the time they would
otherwise be payable as an indemnity for a terminal
illness;
(R) An amount equal to the amount of any
federal or State bonus paid to veterans of the
Persian Gulf War;
(S) An amount, to the extent included in
adjusted gross income, equal to the amount of a
contribution made in the taxable year on behalf of
the taxpayer to a medical care savings account
established under the Medical Care Savings Account
Act or the Medical Care Savings Account Act of 2000
to the extent the contribution is accepted by the
account administrator as provided in that Act;
(T) An amount, to the extent included in
adjusted gross income, equal to the amount of
interest earned in the taxable year on a medical
care savings account established under the Medical
Care Savings Account Act or the Medical Care Savings
Account Act of 2000 on behalf of the taxpayer, other
than interest added pursuant to item (D-5) of this
paragraph (2);
(U) For one taxable year beginning on or after
January 1, 1994, an amount equal to the total amount
of tax imposed and paid under subsections (a) and
(b) of Section 201 of this Act on grant amounts
received by the taxpayer under the Nursing Home
Grant Assistance Act during the taxpayer's taxable
years 1992 and 1993;
(V) Beginning with tax years ending on or
after December 31, 1995 and ending with tax years
ending on or before December 31, 2004, an amount
equal to the amount paid by a taxpayer who is a
self-employed taxpayer, a partner of a partnership,
or a shareholder in a Subchapter S corporation for
health insurance or long-term care insurance for
that taxpayer or that taxpayer's spouse or
dependents, to the extent that the amount paid for
that health insurance or long-term care insurance
may be deducted under Section 213 of the Internal
Revenue Code of 1986, has not been deducted on the
federal income tax return of the taxpayer, and does
not exceed the taxable income attributable to that
taxpayer's income, self-employment income, or
Subchapter S corporation income; except that no
deduction shall be allowed under this item (V) if
the taxpayer is eligible to participate in any
health insurance or long-term care insurance plan of
an employer of the taxpayer or the taxpayer's
spouse. The amount of the health insurance and
long-term care insurance subtracted under this item
(V) shall be determined by multiplying total health
insurance and long-term care insurance premiums paid
by the taxpayer times a number that represents the
fractional percentage of eligible medical expenses
under Section 213 of the Internal Revenue Code of
1986 not actually deducted on the taxpayer's federal
income tax return;
(W) For taxable years beginning on or after
January 1, 1998, all amounts included in the
taxpayer's federal gross income in the taxable year
from amounts converted from a regular IRA to a Roth
IRA. This paragraph is exempt from the provisions of
Section 250;
(X) For taxable year 1999 and thereafter, an
amount equal to the amount of any (i) distributions,
to the extent includible in gross income for federal
income tax purposes, made to the taxpayer because of
his or her status as a victim of persecution for
racial or religious reasons by Nazi Germany or any
other Axis regime or as an heir of the victim and
(ii) items of income, to the extent includible in
gross income for federal income tax purposes,
attributable to, derived from or in any way related
to assets stolen from, hidden from, or otherwise
lost to a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis
regime immediately prior to, during, and immediately
after World War II, including, but not limited to,
interest on the proceeds receivable as insurance
under policies issued to a victim of persecution for
racial or religious reasons by Nazi Germany or any
other Axis regime by European insurance companies
immediately prior to and during World War II;
provided, however, this subtraction from federal
adjusted gross income does not apply to assets
acquired with such assets or with the proceeds from
the sale of such assets; provided, further, this
paragraph shall only apply to a taxpayer who was the
first recipient of such assets after their recovery
and who is a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis
regime or as an heir of the victim. The amount of
and the eligibility for any public assistance,
benefit, or similar entitlement is not affected by
the inclusion of items (i) and (ii) of this
paragraph in gross income for federal income tax
purposes. This paragraph is exempt from the
provisions of Section 250; and
(Y) For taxable years beginning on or after
January 1, 2002, moneys contributed in the taxable
year to a College Savings Pool account under Section
16.5 of the State Treasurer Act. This subparagraph
(Y) is exempt from the provisions of Section 250.
(b) Corporations.
(1) In general. In the case of a corporation, base
income means an amount equal to the taxpayer's taxable
income for the taxable year as modified by paragraph (2).
(2) Modifications. The taxable income referred to
in paragraph (1) shall be modified by adding thereto the
sum of the following amounts:
(A) An amount equal to all amounts paid or
accrued to the taxpayer as interest and all
distributions received from regulated investment
companies during the taxable year to the extent
excluded from gross income in the computation of
taxable income;
(B) An amount equal to the amount of tax
imposed by this Act to the extent deducted from
gross income in the computation of taxable income
for the taxable year;
(C) In the case of a regulated investment
company, an amount equal to the excess of (i) the
net long-term capital gain for the taxable year,
over (ii) the amount of the capital gain dividends
designated as such in accordance with Section
852(b)(3)(C) of the Internal Revenue Code and any
amount designated under Section 852(b)(3)(D) of the
Internal Revenue Code, attributable to the taxable
year (this amendatory Act of 1995 (Public Act 89-89)
is declarative of existing law and is not a new
enactment);
(D) The amount of any net operating loss
deduction taken in arriving at taxable income, other
than a net operating loss carried forward from a
taxable year ending prior to December 31, 1986;
(E) For taxable years in which a net operating
loss carryback or carryforward from a taxable year
ending prior to December 31, 1986 is an element of
taxable income under paragraph (1) of subsection (e)
or subparagraph (E) of paragraph (2) of subsection
(e), the amount by which addition modifications
other than those provided by this subparagraph (E)
exceeded subtraction modifications in such earlier
taxable year, with the following limitations applied
in the order that they are listed:
(i) the addition modification relating to
the net operating loss carried back or forward
to the taxable year from any taxable year
ending prior to December 31, 1986 shall be
reduced by the amount of addition modification
under this subparagraph (E) which related to
that net operating loss and which was taken
into account in calculating the base income of
an earlier taxable year, and
(ii) the addition modification relating
to the net operating loss carried back or
forward to the taxable year from any taxable
year ending prior to December 31, 1986 shall
not exceed the amount of such carryback or
carryforward;
For taxable years in which there is a net
operating loss carryback or carryforward from more
than one other taxable year ending prior to December
31, 1986, the addition modification provided in this
subparagraph (E) shall be the sum of the amounts
computed independently under the preceding
provisions of this subparagraph (E) for each such
taxable year; and
(E-5) For taxable years ending after December
31, 1997, an amount equal to any eligible
remediation costs that the corporation deducted in
computing adjusted gross income and for which the
corporation claims a credit under subsection (l) of
Section 201;
and by deducting from the total so obtained the sum of
the following amounts:
(F) An amount equal to the amount of any tax
imposed by this Act which was refunded to the
taxpayer and included in such total for the taxable
year;
(G) An amount equal to any amount included in
such total under Section 78 of the Internal Revenue
Code;
(H) In the case of a regulated investment
company, an amount equal to the amount of exempt
interest dividends as defined in subsection (b) (5)
of Section 852 of the Internal Revenue Code, paid to
shareholders for the taxable year;
(I) With the exception of any amounts
subtracted under subparagraph (J), an amount equal
to the sum of all amounts disallowed as deductions
by (i) Sections 171(a) (2), and 265(a)(2) and
amounts disallowed as interest expense by Section
291(a)(3) of the Internal Revenue Code, as now or
hereafter amended, and all amounts of expenses
allocable to interest and disallowed as deductions
by Section 265(a)(1) of the Internal Revenue Code,
as now or hereafter amended; and (ii) for taxable
years ending on or after August 13, 1999, Sections
171(a)(2), 265, 280C, 291(a)(3), and 832(b)(5)(B)(i)
of the Internal Revenue Code; the provisions of this
subparagraph are exempt from the provisions of
Section 250;
(J) An amount equal to all amounts included in
such total which are exempt from taxation by this
State either by reason of its statutes or
Constitution or by reason of the Constitution,
treaties or statutes of the United States; provided
that, in the case of any statute of this State that
exempts income derived from bonds or other
obligations from the tax imposed under this Act, the
amount exempted shall be the interest net of bond
premium amortization;
(K) An amount equal to those dividends
included in such total which were paid by a
corporation which conducts business operations in an
Enterprise Zone or zones created under the Illinois
Enterprise Zone Act and conducts substantially all
of its operations in an Enterprise Zone or zones;
(L) An amount equal to those dividends
included in such total that were paid by a
corporation that conducts business operations in a
federally designated Foreign Trade Zone or Sub-Zone
and that is designated a High Impact Business
located in Illinois; provided that dividends
eligible for the deduction provided in subparagraph
(K) of paragraph 2 of this subsection shall not be
eligible for the deduction provided under this
subparagraph (L);
(M) For any taxpayer that is a financial
organization within the meaning of Section 304(c) of
this Act, an amount included in such total as
interest income from a loan or loans made by such
taxpayer to a borrower, to the extent that such a
loan is secured by property which is eligible for
the Enterprise Zone Investment Credit. To determine
the portion of a loan or loans that is secured by
property eligible for a Section 201(f) investment
credit to the borrower, the entire principal amount
of the loan or loans between the taxpayer and the
borrower should be divided into the basis of the
Section 201(f) investment credit property which
secures the loan or loans, using for this purpose
the original basis of such property on the date that
it was placed in service in the Enterprise Zone.
The subtraction modification available to taxpayer
in any year under this subsection shall be that
portion of the total interest paid by the borrower
with respect to such loan attributable to the
eligible property as calculated under the previous
sentence;
(M-1) For any taxpayer that is a financial
organization within the meaning of Section 304(c) of
this Act, an amount included in such total as
interest income from a loan or loans made by such
taxpayer to a borrower, to the extent that such a
loan is secured by property which is eligible for
the High Impact Business Investment Credit. To
determine the portion of a loan or loans that is
secured by property eligible for a Section 201(h)
investment credit to the borrower, the entire
principal amount of the loan or loans between the
taxpayer and the borrower should be divided into the
basis of the Section 201(h) investment credit
property which secures the loan or loans, using for
this purpose the original basis of such property on
the date that it was placed in service in a
federally designated Foreign Trade Zone or Sub-Zone
located in Illinois. No taxpayer that is eligible
for the deduction provided in subparagraph (M) of
paragraph (2) of this subsection shall be eligible
for the deduction provided under this subparagraph
(M-1). The subtraction modification available to
taxpayers in any year under this subsection shall be
that portion of the total interest paid by the
borrower with respect to such loan attributable to
the eligible property as calculated under the
previous sentence;
(N) Two times any contribution made during the
taxable year to a designated zone organization to
the extent that the contribution (i) qualifies as a
charitable contribution under subsection (c) of
Section 170 of the Internal Revenue Code and (ii)
must, by its terms, be used for a project approved
by the Department of Commerce and Community Affairs
under Section 11 of the Illinois Enterprise Zone
Act;
(O) An amount equal to: (i) 85% for taxable
years ending on or before December 31, 1992, or, a
percentage equal to the percentage allowable under
Section 243(a)(1) of the Internal Revenue Code of
1986 for taxable years ending after December 31,
1992, of the amount by which dividends included in
taxable income and received from a corporation that
is not created or organized under the laws of the
United States or any state or political subdivision
thereof, including, for taxable years ending on or
after December 31, 1988, dividends received or
deemed received or paid or deemed paid under
Sections 951 through 964 of the Internal Revenue
Code, exceed the amount of the modification provided
under subparagraph (G) of paragraph (2) of this
subsection (b) which is related to such dividends;
plus (ii) 100% of the amount by which dividends,
included in taxable income and received, including,
for taxable years ending on or after December 31,
1988, dividends received or deemed received or paid
or deemed paid under Sections 951 through 964 of the
Internal Revenue Code, from any such corporation
specified in clause (i) that would but for the
provisions of Section 1504 (b) (3) of the Internal
Revenue Code be treated as a member of the
affiliated group which includes the dividend
recipient, exceed the amount of the modification
provided under subparagraph (G) of paragraph (2) of
this subsection (b) which is related to such
dividends;
(P) An amount equal to any contribution made
to a job training project established pursuant to
the Tax Increment Allocation Redevelopment Act;
(Q) An amount equal to the amount of the
deduction used to compute the federal income tax
credit for restoration of substantial amounts held
under claim of right for the taxable year pursuant
to Section 1341 of the Internal Revenue Code of
1986;
(R) In the case of an attorney-in-fact with
respect to whom an interinsurer or a reciprocal
insurer has made the election under Section 835 of
the Internal Revenue Code, 26 U.S.C. 835, an amount
equal to the excess, if any, of the amounts paid or
incurred by that interinsurer or reciprocal insurer
in the taxable year to the attorney-in-fact over the
deduction allowed to that interinsurer or reciprocal
insurer with respect to the attorney-in-fact under
Section 835(b) of the Internal Revenue Code for the
taxable year; and
(S) For taxable years ending on or after
December 31, 1997, in the case of a Subchapter S
corporation, an amount equal to all amounts of
income allocable to a shareholder subject to the
Personal Property Tax Replacement Income Tax imposed
by subsections (c) and (d) of Section 201 of this
Act, including amounts allocable to organizations
exempt from federal income tax by reason of Section
501(a) of the Internal Revenue Code. This
subparagraph (S) is exempt from the provisions of
Section 250.
(3) Special rule. For purposes of paragraph (2)
(A), "gross income" in the case of a life insurance
company, for tax years ending on and after December 31,
1994, shall mean the gross investment income for the
taxable year.
(c) Trusts and estates.
(1) In general. In the case of a trust or estate,
base income means an amount equal to the taxpayer's
taxable income for the taxable year as modified by
paragraph (2).
(2) Modifications. Subject to the provisions of
paragraph (3), the taxable income referred to in
paragraph (1) shall be modified by adding thereto the sum
of the following amounts:
(A) An amount equal to all amounts paid or
accrued to the taxpayer as interest or dividends
during the taxable year to the extent excluded from
gross income in the computation of taxable income;
(B) In the case of (i) an estate, $600; (ii) a
trust which, under its governing instrument, is
required to distribute all of its income currently,
$300; and (iii) any other trust, $100, but in each
such case, only to the extent such amount was
deducted in the computation of taxable income;
(C) An amount equal to the amount of tax
imposed by this Act to the extent deducted from
gross income in the computation of taxable income
for the taxable year;
(D) The amount of any net operating loss
deduction taken in arriving at taxable income, other
than a net operating loss carried forward from a
taxable year ending prior to December 31, 1986;
(E) For taxable years in which a net operating
loss carryback or carryforward from a taxable year
ending prior to December 31, 1986 is an element of
taxable income under paragraph (1) of subsection (e)
or subparagraph (E) of paragraph (2) of subsection
(e), the amount by which addition modifications
other than those provided by this subparagraph (E)
exceeded subtraction modifications in such taxable
year, with the following limitations applied in the
order that they are listed:
(i) the addition modification relating to
the net operating loss carried back or forward
to the taxable year from any taxable year
ending prior to December 31, 1986 shall be
reduced by the amount of addition modification
under this subparagraph (E) which related to
that net operating loss and which was taken
into account in calculating the base income of
an earlier taxable year, and
(ii) the addition modification relating
to the net operating loss carried back or
forward to the taxable year from any taxable
year ending prior to December 31, 1986 shall
not exceed the amount of such carryback or
carryforward;
For taxable years in which there is a net
operating loss carryback or carryforward from more
than one other taxable year ending prior to December
31, 1986, the addition modification provided in this
subparagraph (E) shall be the sum of the amounts
computed independently under the preceding
provisions of this subparagraph (E) for each such
taxable year;
(F) For taxable years ending on or after
January 1, 1989, an amount equal to the tax deducted
pursuant to Section 164 of the Internal Revenue Code
if the trust or estate is claiming the same tax for
purposes of the Illinois foreign tax credit under
Section 601 of this Act;
(G) An amount equal to the amount of the
capital gain deduction allowable under the Internal
Revenue Code, to the extent deducted from gross
income in the computation of taxable income; and
(G-5) For taxable years ending after December
31, 1997, an amount equal to any eligible
remediation costs that the trust or estate deducted
in computing adjusted gross income and for which the
trust or estate claims a credit under subsection (l)
of Section 201;
and by deducting from the total so obtained the sum of
the following amounts:
(H) An amount equal to all amounts included in
such total pursuant to the provisions of Sections
402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and
408 of the Internal Revenue Code or included in such
total as distributions under the provisions of any
retirement or disability plan for employees of any
governmental agency or unit, or retirement payments
to retired partners, which payments are excluded in
computing net earnings from self employment by
Section 1402 of the Internal Revenue Code and
regulations adopted pursuant thereto;
(I) The valuation limitation amount;
(J) An amount equal to the amount of any tax
imposed by this Act which was refunded to the
taxpayer and included in such total for the taxable
year;
(K) An amount equal to all amounts included in
taxable income as modified by subparagraphs (A),
(B), (C), (D), (E), (F) and (G) which are exempt
from taxation by this State either by reason of its
statutes or Constitution or by reason of the
Constitution, treaties or statutes of the United
States; provided that, in the case of any statute of
this State that exempts income derived from bonds or
other obligations from the tax imposed under this
Act, the amount exempted shall be the interest net
of bond premium amortization;
(L) With the exception of any amounts
subtracted under subparagraph (K), an amount equal
to the sum of all amounts disallowed as deductions
by (i) Sections 171(a) (2) and 265(a)(2) of the
Internal Revenue Code, as now or hereafter amended,
and all amounts of expenses allocable to interest
and disallowed as deductions by Section 265(1) of
the Internal Revenue Code of 1954, as now or
hereafter amended; and (ii) for taxable years ending
on or after August 13, 1999, Sections 171(a)(2),
265, 280C, and 832(b)(5)(B)(i) of the Internal
Revenue Code; the provisions of this subparagraph
are exempt from the provisions of Section 250;
(M) An amount equal to those dividends
included in such total which were paid by a
corporation which conducts business operations in an
Enterprise Zone or zones created under the Illinois
Enterprise Zone Act and conducts substantially all
of its operations in an Enterprise Zone or Zones;
(N) An amount equal to any contribution made
to a job training project established pursuant to
the Tax Increment Allocation Redevelopment Act;
(O) An amount equal to those dividends
included in such total that were paid by a
corporation that conducts business operations in a
federally designated Foreign Trade Zone or Sub-Zone
and that is designated a High Impact Business
located in Illinois; provided that dividends
eligible for the deduction provided in subparagraph
(M) of paragraph (2) of this subsection shall not be
eligible for the deduction provided under this
subparagraph (O);
(P) An amount equal to the amount of the
deduction used to compute the federal income tax
credit for restoration of substantial amounts held
under claim of right for the taxable year pursuant
to Section 1341 of the Internal Revenue Code of
1986; and
(Q) For taxable year 1999 and thereafter, an
amount equal to the amount of any (i) distributions,
to the extent includible in gross income for federal
income tax purposes, made to the taxpayer because of
his or her status as a victim of persecution for
racial or religious reasons by Nazi Germany or any
other Axis regime or as an heir of the victim and
(ii) items of income, to the extent includible in
gross income for federal income tax purposes,
attributable to, derived from or in any way related
to assets stolen from, hidden from, or otherwise
lost to a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis
regime immediately prior to, during, and immediately
after World War II, including, but not limited to,
interest on the proceeds receivable as insurance
under policies issued to a victim of persecution for
racial or religious reasons by Nazi Germany or any
other Axis regime by European insurance companies
immediately prior to and during World War II;
provided, however, this subtraction from federal
adjusted gross income does not apply to assets
acquired with such assets or with the proceeds from
the sale of such assets; provided, further, this
paragraph shall only apply to a taxpayer who was the
first recipient of such assets after their recovery
and who is a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis
regime or as an heir of the victim. The amount of
and the eligibility for any public assistance,
benefit, or similar entitlement is not affected by
the inclusion of items (i) and (ii) of this
paragraph in gross income for federal income tax
purposes. This paragraph is exempt from the
provisions of Section 250.
(3) Limitation. The amount of any modification
otherwise required under this subsection shall, under
regulations prescribed by the Department, be adjusted by
any amounts included therein which were properly paid,
credited, or required to be distributed, or permanently
set aside for charitable purposes pursuant to Internal
Revenue Code Section 642(c) during the taxable year.
(d) Partnerships.
(1) In general. In the case of a partnership, base
income means an amount equal to the taxpayer's taxable
income for the taxable year as modified by paragraph (2).
(2) Modifications. The taxable income referred to
in paragraph (1) shall be modified by adding thereto the
sum of the following amounts:
(A) An amount equal to all amounts paid or
accrued to the taxpayer as interest or dividends
during the taxable year to the extent excluded from
gross income in the computation of taxable income;
(B) An amount equal to the amount of tax
imposed by this Act to the extent deducted from
gross income for the taxable year;
(C) The amount of deductions allowed to the
partnership pursuant to Section 707 (c) of the
Internal Revenue Code in calculating its taxable
income; and
(D) An amount equal to the amount of the
capital gain deduction allowable under the Internal
Revenue Code, to the extent deducted from gross
income in the computation of taxable income;
and by deducting from the total so obtained the following
amounts:
(E) The valuation limitation amount;
(F) An amount equal to the amount of any tax
imposed by this Act which was refunded to the
taxpayer and included in such total for the taxable
year;
(G) An amount equal to all amounts included in
taxable income as modified by subparagraphs (A),
(B), (C) and (D) which are exempt from taxation by
this State either by reason of its statutes or
Constitution or by reason of the Constitution,
treaties or statutes of the United States; provided
that, in the case of any statute of this State that
exempts income derived from bonds or other
obligations from the tax imposed under this Act, the
amount exempted shall be the interest net of bond
premium amortization;
(H) Any income of the partnership which
constitutes personal service income as defined in
Section 1348 (b) (1) of the Internal Revenue Code
(as in effect December 31, 1981) or a reasonable
allowance for compensation paid or accrued for
services rendered by partners to the partnership,
whichever is greater;
(I) An amount equal to all amounts of income
distributable to an entity subject to the Personal
Property Tax Replacement Income Tax imposed by
subsections (c) and (d) of Section 201 of this Act
including amounts distributable to organizations
exempt from federal income tax by reason of Section
501(a) of the Internal Revenue Code;
(J) With the exception of any amounts
subtracted under subparagraph (G), an amount equal
to the sum of all amounts disallowed as deductions
by (i) Sections 171(a) (2), and 265(2) of the
Internal Revenue Code of 1954, as now or hereafter
amended, and all amounts of expenses allocable to
interest and disallowed as deductions by Section
265(1) of the Internal Revenue Code, as now or
hereafter amended; and (ii) for taxable years ending
on or after August 13, 1999, Sections 171(a)(2),
265, 280C, and 832(b)(5)(B)(i) of the Internal
Revenue Code; the provisions of this subparagraph
are exempt from the provisions of Section 250;
(K) An amount equal to those dividends
included in such total which were paid by a
corporation which conducts business operations in an
Enterprise Zone or zones created under the Illinois
Enterprise Zone Act, enacted by the 82nd General
Assembly, and which does not conduct such operations
other than in an Enterprise Zone or Zones;
(L) An amount equal to any contribution made
to a job training project established pursuant to
the Real Property Tax Increment Allocation
Redevelopment Act;
(M) An amount equal to those dividends
included in such total that were paid by a
corporation that conducts business operations in a
federally designated Foreign Trade Zone or Sub-Zone
and that is designated a High Impact Business
located in Illinois; provided that dividends
eligible for the deduction provided in subparagraph
(K) of paragraph (2) of this subsection shall not be
eligible for the deduction provided under this
subparagraph (M); and
(N) An amount equal to the amount of the
deduction used to compute the federal income tax
credit for restoration of substantial amounts held
under claim of right for the taxable year pursuant
to Section 1341 of the Internal Revenue Code of
1986.
(e) Gross income; adjusted gross income; taxable income.
(1) In general. Subject to the provisions of
paragraph (2) and subsection (b) (3), for purposes of
this Section and Section 803(e), a taxpayer's gross
income, adjusted gross income, or taxable income for the
taxable year shall mean the amount of gross income,
adjusted gross income or taxable income properly
reportable for federal income tax purposes for the
taxable year under the provisions of the Internal Revenue
Code. Taxable income may be less than zero. However, for
taxable years ending on or after December 31, 1986, net
operating loss carryforwards from taxable years ending
prior to December 31, 1986, may not exceed the sum of
federal taxable income for the taxable year before net
operating loss deduction, plus the excess of addition
modifications over subtraction modifications for the
taxable year. For taxable years ending prior to December
31, 1986, taxable income may never be an amount in excess
of the net operating loss for the taxable year as defined
in subsections (c) and (d) of Section 172 of the Internal
Revenue Code, provided that when taxable income of a
corporation (other than a Subchapter S corporation),
trust, or estate is less than zero and addition
modifications, other than those provided by subparagraph
(E) of paragraph (2) of subsection (b) for corporations
or subparagraph (E) of paragraph (2) of subsection (c)
for trusts and estates, exceed subtraction modifications,
an addition modification must be made under those
subparagraphs for any other taxable year to which the
taxable income less than zero (net operating loss) is
applied under Section 172 of the Internal Revenue Code or
under subparagraph (E) of paragraph (2) of this
subsection (e) applied in conjunction with Section 172 of
the Internal Revenue Code.
(2) Special rule. For purposes of paragraph (1) of
this subsection, the taxable income properly reportable
for federal income tax purposes shall mean:
(A) Certain life insurance companies. In the
case of a life insurance company subject to the tax
imposed by Section 801 of the Internal Revenue Code,
life insurance company taxable income, plus the
amount of distribution from pre-1984 policyholder
surplus accounts as calculated under Section 815a of
the Internal Revenue Code;
(B) Certain other insurance companies. In the
case of mutual insurance companies subject to the
tax imposed by Section 831 of the Internal Revenue
Code, insurance company taxable income;
(C) Regulated investment companies. In the
case of a regulated investment company subject to
the tax imposed by Section 852 of the Internal
Revenue Code, investment company taxable income;
(D) Real estate investment trusts. In the
case of a real estate investment trust subject to
the tax imposed by Section 857 of the Internal
Revenue Code, real estate investment trust taxable
income;
(E) Consolidated corporations. In the case of
a corporation which is a member of an affiliated
group of corporations filing a consolidated income
tax return for the taxable year for federal income
tax purposes, taxable income determined as if such
corporation had filed a separate return for federal
income tax purposes for the taxable year and each
preceding taxable year for which it was a member of
an affiliated group. For purposes of this
subparagraph, the taxpayer's separate taxable income
shall be determined as if the election provided by
Section 243(b) (2) of the Internal Revenue Code had
been in effect for all such years;
(F) Cooperatives. In the case of a
cooperative corporation or association, the taxable
income of such organization determined in accordance
with the provisions of Section 1381 through 1388 of
the Internal Revenue Code;
(G) Subchapter S corporations. In the case
of: (i) a Subchapter S corporation for which there
is in effect an election for the taxable year under
Section 1362 of the Internal Revenue Code, the
taxable income of such corporation determined in
accordance with Section 1363(b) of the Internal
Revenue Code, except that taxable income shall take
into account those items which are required by
Section 1363(b)(1) of the Internal Revenue Code to
be separately stated; and (ii) a Subchapter S
corporation for which there is in effect a federal
election to opt out of the provisions of the
Subchapter S Revision Act of 1982 and have applied
instead the prior federal Subchapter S rules as in
effect on July 1, 1982, the taxable income of such
corporation determined in accordance with the
federal Subchapter S rules as in effect on July 1,
1982; and
(H) Partnerships. In the case of a
partnership, taxable income determined in accordance
with Section 703 of the Internal Revenue Code,
except that taxable income shall take into account
those items which are required by Section 703(a)(1)
to be separately stated but which would be taken
into account by an individual in calculating his
taxable income.
(f) Valuation limitation amount.
(1) In general. The valuation limitation amount
referred to in subsections (a) (2) (G), (c) (2) (I) and
(d)(2) (E) is an amount equal to:
(A) The sum of the pre-August 1, 1969
appreciation amounts (to the extent consisting of
gain reportable under the provisions of Section 1245
or 1250 of the Internal Revenue Code) for all
property in respect of which such gain was reported
for the taxable year; plus
(B) The lesser of (i) the sum of the
pre-August 1, 1969 appreciation amounts (to the
extent consisting of capital gain) for all property
in respect of which such gain was reported for
federal income tax purposes for the taxable year, or
(ii) the net capital gain for the taxable year,
reduced in either case by any amount of such gain
included in the amount determined under subsection
(a) (2) (F) or (c) (2) (H).
(2) Pre-August 1, 1969 appreciation amount.
(A) If the fair market value of property
referred to in paragraph (1) was readily
ascertainable on August 1, 1969, the pre-August 1,
1969 appreciation amount for such property is the
lesser of (i) the excess of such fair market value
over the taxpayer's basis (for determining gain) for
such property on that date (determined under the
Internal Revenue Code as in effect on that date), or
(ii) the total gain realized and reportable for
federal income tax purposes in respect of the sale,
exchange or other disposition of such property.
(B) If the fair market value of property
referred to in paragraph (1) was not readily
ascertainable on August 1, 1969, the pre-August 1,
1969 appreciation amount for such property is that
amount which bears the same ratio to the total gain
reported in respect of the property for federal
income tax purposes for the taxable year, as the
number of full calendar months in that part of the
taxpayer's holding period for the property ending
July 31, 1969 bears to the number of full calendar
months in the taxpayer's entire holding period for
the property.
(C) The Department shall prescribe such
regulations as may be necessary to carry out the
purposes of this paragraph.
(g) Double deductions. Unless specifically provided
otherwise, nothing in this Section shall permit the same item
to be deducted more than once.
(h) Legislative intention. Except as expressly provided
by this Section there shall be no modifications or
limitations on the amounts of income, gain, loss or deduction
taken into account in determining gross income, adjusted
gross income or taxable income for federal income tax
purposes for the taxable year, or in the amount of such items
entering into the computation of base income and net income
under this Act for such taxable year, whether in respect of
property values as of August 1, 1969 or otherwise.
(Source: P.A. 91-192, eff. 7-20-99; 91-205, eff. 7-20-99;
91-357, eff. 7-29-99; 91-541, eff. 8-13-99; 91-676, eff.
12-23-99; 91-845, eff. 6-22-00; 91-913, eff. 1-1-01; 92-16,
eff. 6-28-01; 92-244, eff. 8-3-01; 92-439, eff. 8-17-01;
revised 9-21-01.)
(35 ILCS 5/507V)
Sec. 507V. National World War II Memorial Fund checkoff.
The Department must print on its standard individual income
tax form a provision indicating that if the taxpayer wishes
to contribute to the National World War II Memorial Fund, as
authorized by this amendatory Act of the 91st General
Assembly, he or she may do so by stating the amount of the
contribution (not less than $1) on the return and that the
contribution will reduce the taxpayer's refund or increase
the amount of payment to accompany the return. Failure to
remit any amount of increased payment reduces the
contribution accordingly. This Section does not apply to any
amended return.
(Source: P.A. 91-833, eff. 1-1-01; 91-836, eff. 1-1-01.)
(35 ILCS 5/507W)
Sec. 507W. 507V. Korean War Veterans National Museum and
Library Fund checkoff. Beginning with taxable years ending
on or after December 31, 2001, the Department shall print on
its standard individual income tax form a provision
indicating that if the taxpayer wishes to contribute to the
Korean War Veterans National Museum and Library Fund, as
authorized by this amendatory Act of the 92nd General
Assembly, he or she may do so by stating the amount of the
contribution (not less than $1) on the return and that the
contribution will reduce the taxpayer's refund or increase
the amount of payment to accompany the return. Failure to
remit any amount of increased payment shall reduce the
contribution accordingly. This Section shall not apply to
any amended return.
(Source: P.A. 92-198, eff. 8-1-01; revised 10-17-01.)
(35 ILCS 5/509) (from Ch. 120, par. 5-509)
(Text of Section before amendment by P.A. 92-84)
Sec. 509. Tax checkoff explanations. All individual
income tax return forms shall contain appropriate
explanations and spaces to enable the taxpayers to designate
contributions to the Child Abuse Prevention Fund, to the
Community Health Center Care Fund, to the Illinois Wildlife
Preservation Fund as required by the Illinois Non-Game
Wildlife Protection Act, to the Alzheimer's Disease Research
Fund as required by the Alzheimer's Disease Research Act, to
the Assistance to the Homeless Fund as required by this Act,
to the Heritage Preservation Fund as required by the Heritage
Preservation Act, to the Child Care Expansion Program Fund as
required by the Child Care Expansion Program Act, to the Ryan
White AIDS Victims Assistance Fund, to the Assistive
Technology for Persons with Disabilities Fund, to the
Domestic Violence Shelter and Service Fund, to the United
States Olympians Assistance Fund, to the Youth Drug Abuse
Prevention Fund, to the Persian Gulf Conflict Veterans Fund,
to the Literacy Advancement Fund, to the Ryan White Pediatric
and Adult AIDS Fund, to the Illinois Special Olympics
Checkoff Fund, to the Penny Severns Breast and Cervical
Cancer Research Fund, to the Korean War Memorial Fund, to the
Heart Disease Treatment and Prevention Fund, to the
Hemophilia Treatment Fund, to the Mental Health Research
Fund, to the Children's Cancer Fund, to the American Diabetes
Association Fund, to the National World War II Memorial Fund,
to the Prostate Cancer Research Fund, to the Korean War
Veterans National Museum and Library Fund, and to the Meals
on Wheels Fund. Each form shall contain a statement that the
contributions will reduce the taxpayer's refund or increase
the amount of payment to accompany the return. Failure to
remit any amount of increased payment shall reduce the
contribution accordingly.
If, on October 1 of any year, the total contributions to
any one of the funds made under this Section do not equal
$100,000 or more, the explanations and spaces for designating
contributions to the fund shall be removed from the
individual income tax return forms for the following and all
subsequent years and all subsequent contributions to the fund
shall be refunded to the taxpayer.
(Source: P.A. 91-104, eff. 7-13-99; 91-107, eff. 7-13-99;
91-357, eff. 7-29-99; 91-833, eff. 1-1-01; 91-836, eff.
1-1-01; 92-198, eff. 8-1-01.)
(Text of Section after amendment by P.A. 92-84)
Sec. 509. Tax checkoff explanations. All individual
income tax return forms shall contain appropriate
explanations and spaces to enable the taxpayers to designate
contributions to the Child Abuse Prevention Fund, to the
Illinois Wildlife Preservation Fund as required by the
Illinois Non-Game Wildlife Protection Act, to the Alzheimer's
Disease Research Fund as required by the Alzheimer's Disease
Research Act, to the Assistance to the Homeless Fund as
required by this Act, to the Penny Severns Breast and
Cervical Cancer Research Fund, to the National World War II
Memorial Fund, and to the Prostate Cancer Research Fund, and
to the Korean War Veterans National Museum and Library Fund,.
Each form shall contain a statement that the contributions
will reduce the taxpayer's refund or increase the amount of
payment to accompany the return. Failure to remit any amount
of increased payment shall reduce the contribution
accordingly.
If, on October 1 of any year, the total contributions to
any one of the funds made under this Section do not equal
$100,000 or more, the explanations and spaces for designating
contributions to the fund shall be removed from the
individual income tax return forms for the following and all
subsequent years and all subsequent contributions to the fund
shall be refunded to the taxpayer.
(Source: P.A. 91-104, eff. 7-13-99; 91-107, eff. 7-13-99;
91-357, eff. 7-29-99; 91-833, eff. 1-1-01; 91-836, eff.
1-1-01; 92-84, eff. 7-1-02; 92-198, eff. 8-1-01; revised
9-12-01.)
(35 ILCS 5/510) (from Ch. 120, par. 5-510)
(Text of Section before amendment by P.A. 92-84)
Sec. 510. Determination of amounts contributed. The
Department shall determine the total amount contributed to
each of the following: the Child Abuse Prevention Fund, the
Illinois Wildlife Preservation Fund, the Community Health
Center Care Fund, the Assistance to the Homeless Fund, the
Alzheimer's Disease Research Fund, the Heritage Preservation
Fund, the Child Care Expansion Program Fund, the Ryan White
AIDS Victims Assistance Fund, the Assistive Technology for
Persons with Disabilities Fund, the Domestic Violence Shelter
and Service Fund, the United States Olympians Assistance
Fund, the Youth Drug Abuse Prevention Fund, the Persian Gulf
Conflict Veterans Fund, the Literacy Advancement Fund, the
Ryan White Pediatric and Adult AIDS Fund, the Illinois
Special Olympics Checkoff Fund, the Penny Severns Breast and
Cervical Cancer Research Fund, the Korean War Memorial Fund,
the Heart Disease Treatment and Prevention Fund, the
Hemophilia Treatment Fund, the Mental Health Research Fund,
the Children's Cancer Fund, the American Diabetes
Association Fund, the National World War II Memorial Fund,
the Prostate Cancer Research Fund, the Korean War Veterans
National Museum and Library Fund, and the Meals on Wheels
Fund; and shall notify the State Comptroller and the State
Treasurer of the amounts to be transferred from the General
Revenue Fund to each fund, and upon receipt of such
notification the State Treasurer and Comptroller shall
transfer the amounts.
(Source: P.A. 91-104, eff. 7-13-99; 91-107, eff. 7-13-99;
91-833, eff. 1-1-01; 91-836, eff. 1-1-01; 92-198, eff.
8-1-01.)
(Text of Section after amendment by P.A. 92-84)
Sec. 510. Determination of amounts contributed. The
Department shall determine the total amount contributed to
each of the following: the Child Abuse Prevention Fund, the
Illinois Wildlife Preservation Fund, the Assistance to the
Homeless Fund, the Alzheimer's Disease Research Fund, the
Penny Severns Breast and Cervical Cancer Research Fund, the
National World War II Memorial Fund, and the Prostate Cancer
Research Fund, and the Korean War Veterans National Museum
and Library Fund,; and shall notify the State Comptroller and
the State Treasurer of the amounts to be transferred from the
General Revenue Fund to each fund, and upon receipt of such
notification the State Treasurer and Comptroller shall
transfer the amounts.
(Source: P.A. 91-104, eff. 7-13-99; 91-107, eff. 7-13-99;
91-833, eff. 1-1-01; 91-836, eff. 1-1-01; 92-84, eff. 7-1-02;
92-198, eff. 8-1-01; revised 9-12-01.)
Section 24. The Economic Development for a Growing
Economy Tax Credit Act is amended by changing Section 5-5 as
follows:
(35 ILCS 10/5-5)
Sec. 5-5. Definitions. As used in this Act:
"Agreement" means the Agreement between a Taxpayer and
the Department under the provisions of Section 5-50 of this
Act.
"Applicant" means a Taxpayer that is operating a business
located or that the Taxpayer plans to locate within the State
of Illinois and that is engaged in interstate or intrastate
commerce for the purpose of manufacturing, processing,
assembling, warehousing, or distributing products, conducting
research and development, providing tourism services, or
providing services in interstate commerce, office industries,
or agricultural processing, but excluding retail, retail
food, health, or professional services. "Applicant" does not
include a Taxpayer who closes or substantially reduces an
operation at one location in the State and relocates
substantially the same operation to another location in the
State. This does not prohibit a Taxpayer from expanding its
operations at another location in the State, provided that
existing operations of a similar nature located within the
State are not closed or substantially reduced. This also
does not prohibit a Taxpayer from moving its operations from
one location in the State to another location in the State
for the purpose of expanding the operation provided that the
Department determines that expansion cannot reasonably be
accommodated within the municipality in which the business is
located, or in the case of a business located in an
incorporated area of the county, within the county in which
the business is located, after conferring with the chief
elected official of the municipality or county and taking
into consideration any evidence offered by the municipality
or county regarding the ability to accommodate expansion
within the municipality or county.
"Committee" means the Illinois Business Investment
Committee created under Section 5-25 of this Act within the
Illinois Economic Development Board.
"Credit" means the amount agreed to between the
Department and Applicant under this Act, but not to exceed
the Incremental Income Tax attributable to the Applicant's
project.
"Department" means the Department of Commerce and
Community Affairs.
"Director" means the Director of Commerce and Community
Affairs.
"Full-time Employee" means an individual who is employed
for consideration for at least 35 hours each week or who
renders any other standard of service generally accepted by
industry custom or practice as full-time employment.
"Incremental Income Tax" means the total amount withheld
during the taxable year from the compensation of New
Employees under Article 7 of the Illinois Income Tax Act
arising from employment at a project that is the subject of
an Agreement.
"New Employee" means:
(a) A Full-time Employee first employed by a
Taxpayer in the project that is the subject of an
Agreement and who is hired after the Taxpayer enters into
the tax credit Agreement.
(b) The term "New Employee" does not include:
(1) an employee of the Taxpayer who performs a
job that was previously performed by another
employee, if that job existed for at least 6 months
before hiring the employee;
(2) an employee of the Taxpayer who was
previously employed in Illinois by a Related Member
of the Taxpayer and whose employment was shifted to
the Taxpayer after the Taxpayer entered into the tax
credit Agreement; or
(3) a child, grandchild, parent, or spouse,
other than a spouse who is legally separated from
the individual, of any individual who has a direct
or an indirect ownership interest of at least 5% in
the profits, capital, or value of the Taxpayer.
(c) Notwithstanding paragraph (1) of subsection
(b), an employee may be considered a New Employee under
the Agreement if the employee performs a job that was
previously performed by an employee who was:
(1) treated under the Agreement as a New
Employee; and
(2) promoted by the Taxpayer to another job.
(d) Notwithstanding subsection (a), the Department
may award Credit to an Applicant with respect to an
employee hired prior to the date of the Agreement if:
(1) the Applicant is in receipt of a letter
from the Department stating an intent to enter into
a credit Agreement;
(2) the letter described in paragraph (1) is
issued by the Department not later than 15 days
after the effective date of this Act; and
(3) the employee was hired after the date the
letter described in paragraph (1) was issued.
"Noncompliance Date" means, in the case of a Taxpayer
that is not complying with the requirements of the Agreement
or the provisions of this Act, the day following the last
date upon which the Taxpayer was in compliance with the
requirements of the Agreement and the provisions of this Act,
as determined by the Director, pursuant to Section 5-65.
"Pass Through Entity" means an entity that is exempt from
the tax under subsection (b) or (c) of Section 205 of the
Illinois Income Tax Act.
"Related Member" means a person that, with respect to the
Taxpayer during any portion of the taxable year, is any one
of the following:
(1) An individual stockholder, if the stockholder
and the members of the stockholder's family (as defined
in Section 318 of the Internal Revenue Code) own
directly, indirectly, beneficially, or constructively, in
the aggregate, at least 50% of the value of the
Taxpayer's outstanding stock.
(2) A partnership, estate, or trust and any partner
or beneficiary, if the partnership, estate, or trust, and
its partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at
least 50% of the profits, capital capitol, stock, or
value of the Taxpayer.
(3) A corporation, and any party related to the
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the Taxpayer
owns directly, indirectly, beneficially, or
constructively at least 50% of the value of the
corporation's outstanding stock.
(4) A corporation and any party related to that
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the
corporation and all such related parties own in the
aggregate at least 50% of the profits, capital, stock, or
value of the Taxpayer.
(5) A person to or from whom there is attribution
of stock ownership in accordance with Section 1563(e) of
the Internal Revenue Code, except, for purposes of
determining whether a person is a Related Member under
this paragraph, 20% shall be substituted for 5% wherever
5% appears in Section 1563(e) of the Internal Revenue
Code.
"Taxpayer" means an individual, corporation, partnership,
or other entity that has any Illinois Income Tax liability.
(Source: P.A. 91-476, eff. 8-11-99; revised 12-04-01.)
Section 25. The Use Tax Act is amended by changing
Sections 3-5 and 9 as follows:
(35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
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 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) 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) 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) 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.
(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 of the first division, a motor
vehicle of the second division that is a self-contained motor
vehicle designed or permanently converted to provide living
quarters for recreational, camping, or travel use, with
direct walk through to the living quarters from the driver's
seat, or a motor vehicle of the second division that is of
the van configuration designed for the transportation of not
less than 7 nor more than 16 passengers, as defined in
Section 1-146 of the Illinois Vehicle Code, 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) 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.
(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) 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 exploration, mining, offhighway 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.
(17) 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.
(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.
(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" or
an "exotic game hunting area" as those terms are used in the
Wildlife Code or at a hunting enclosure approved through
rules adopted by the Department of Natural Resources. 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, 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) 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 5 of the Illinois Public Aid
Code who resides in a licensed long-term care facility, as
defined in the Nursing Home Care Act.
(31) 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 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 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 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.
(Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
eff. 8-20-99; 91-901, eff. 1-1-01; 92-35, eff. 7-1-01;
92-227, eff. 8-2-01; 92-337, eff. 8-10-01; 92-484, eff.
8-23-01; revised 10-10-01.)
(35 ILCS 105/9) (from Ch. 120, par. 439.9)
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. 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.
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, 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.
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 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 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 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.
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. 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 Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 and 275,000,000
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 2042.
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 amendment thereto
hereafter enacted, each month the Department shall pay into
the Local Government Distributive Fund .4% of the net revenue
realized for the preceding month from the 5% general rate, or
.4% of 80% of the net revenue realized for the preceding
month from the 6.25% general rate, as the case may be, on the
selling price of tangible personal property which amount
shall, subject to appropriation, be distributed as provided
in Section 2 of the State Revenue Sharing Act. No payments or
distributions pursuant to this paragraph shall be made if the
tax imposed by this Act on photoprocessing products is
declared unconstitutional, or if the proceeds from such tax
are unavailable for distribution because of litigation.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Local Government Distributive Fund pursuant to the preceding
paragraphs or in any amendments thereto hereafter enacted,
beginning July 1, 1993, the Department shall each month pay
into the Illinois Tax Increment Fund 0.27% of 80% of the net
revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Local Government Distributive 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 Community Affairs
Law of the Civil Administrative Code of Illinois.
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. 91-37, eff. 7-1-99; 91-51, eff. 6-30-99;
91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 91-872, eff.
7-1-00; 91-901, eff. 1-1-01; 92-12, eff. 7-1-01; 92-16, eff.
6-28-01; 92-208, eff. 8-2-01; 92-492, eff. 1-1-02; revised
9-14-01.)
Section 26. The Service Use Tax Act is amended by
changing Sections 3-5 and 9 as follows:
(35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
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) 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.
(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) 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.
(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) 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 exploration, mining, offhighway 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.
(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.
(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" or
an "exotic game hunting area" as those terms are used in the
Wildlife Code or at a hunting enclosure approved through
rules adopted by the Department of Natural Resources. 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, 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) 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 5 of the Illinois Public Aid
Code who resides in a licensed long-term care facility, as
defined in the Nursing Home Care Act.
(24) (23) 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) (24) 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.
(Source: P.A. 91-51, eff. 6-30-99; 91-200, eff. 7-20-99;
91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644, eff.
8-20-99; 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227,
eff. 8-2-01; 92-337, eff. 8-10-01; 92-484, eff. 8-23-01;
revised 10-10-01.)
(35 ILCS 110/9) (from Ch. 120, par. 439.39)
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. 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.
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 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 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.
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. 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 Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 and 275,000,000
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 2042.
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 amendment thereto
hereafter enacted, each month the Department shall pay into
the Local Government Distributive Fund 0.4% of the net
revenue realized for the preceding month from the 5% general
rate or 0.4% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate, as the case may
be, on the selling price of tangible personal property which
amount shall, subject to appropriation, be distributed as
provided in Section 2 of the State Revenue Sharing Act. No
payments or distributions pursuant to this paragraph shall be
made if the tax imposed by this Act on photo processing
products is declared unconstitutional, or if the proceeds
from such tax are unavailable for distribution because of
litigation.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Local Government Distributive Fund pursuant to the preceding
paragraphs or in any amendments thereto hereafter enacted,
beginning July 1, 1993, the Department shall each month pay
into the Illinois Tax Increment Fund 0.27% of 80% of the net
revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Local Government Distributive 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 Community Affairs
Law of the Civil Administrative Code of Illinois.
All remaining moneys received by the Department pursuant
to this Act shall be paid into the General Revenue Fund of
the State Treasury.
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. 91-37, eff. 7-1-99; 91-51, eff. 6-30-99;
91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 91-872, eff.
7-1-00; 92-12, eff. 7-1-01; 92-208, eff. 8-2-01; 92-492, eff.
1-1-02; revised 9-14-01.)
Section 27. The Service Occupation Tax Act is amended by
changing Sections 3-5 and 9 as follows:
(35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
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) 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.
(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) 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.
(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) 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 exploration, mining, offhighway 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.
(13) 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 5 of the Illinois Public Aid
Code who resides in a licensed long-term care facility, as
defined in the Nursing Home Care Act.
(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.
(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" or an "exotic
game hunting area" as those terms are used in the Wildlife
Code or at a hunting enclosure approved through rules adopted
by the Department of Natural Resources. 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, 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) (24) Beginning on January 1, 2002, 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) (24). The permit issued
under this paragraph (26) (24) 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.
(Source: P.A. 91-51, eff. 6-30-99; 91-200, eff. 7-20-99;
91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637, eff.
8-20-99; 91-644, eff. 8-20-99; 92-16, eff. 6-28-01; 92-35,
eff. 7-1-01; 92-227, eff. 8-2-01; 92-337, eff. 8-10-01;
92-484, eff. 8-23-01; 92-488, eff. 8-23-01; revised 1-15-02.)
(35 ILCS 115/9) (from Ch. 120, par. 439.109)
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.
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.
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.
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 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.
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 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 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.
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. 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 Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 and 275,000,000
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 2042.
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 amendment thereto
hereafter enacted, each month the Department shall pay into
the Local Government Distributive Fund 0.4% of the net
revenue realized for the preceding month from the 5% general
rate or 0.4% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate, as the case may
be, on the selling price of tangible personal property which
amount shall, subject to appropriation, be distributed as
provided in Section 2 of the State Revenue Sharing Act. No
payments or distributions pursuant to this paragraph shall be
made if the tax imposed by this Act on photoprocessing
products is declared unconstitutional, or if the proceeds
from such tax are unavailable for distribution because of
litigation.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Local Government Distributive Fund pursuant to the preceding
paragraphs or in any amendments thereto hereafter enacted,
beginning July 1, 1993, the Department shall each month pay
into the Illinois Tax Increment Fund 0.27% of 80% of the net
revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Local Government Distributive 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 Community Affairs
Law of the Civil Administrative Code of Illinois.
Remaining moneys received by the Department pursuant to
this Act shall be paid into the General Revenue Fund of 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 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. 91-37, eff. 7-1-99; 91-51, eff. 6-30-99;
91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 91-872, eff.
7-1-00; 92-12, eff. 7-1-01; 92-208, eff. 8-2-01; 92-492, eff.
1-1-02; revised 9-14-01.)
Section 28. The Retailers' Occupation Tax Act is amended
by changing Sections 2-5 and 3 as follows:
(35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
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 (7) is exempt
from the provisions of Section 2-70.
(3) 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) 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.
(5) A motor vehicle of the first division, a motor
vehicle of the second division that is a self-contained motor
vehicle designed or permanently converted to provide living
quarters for recreational, camping, or travel use, with
direct walk through access to the living quarters from the
driver's seat, or a motor vehicle of the second division that
is of the van configuration designed for the transportation
of not less than 7 nor more than 16 passengers, as defined in
Section 1-146 of the Illinois Vehicle Code, that is used for
automobile renting, as defined in the Automobile Renting
Occupation and Use Tax Act.
(6) Personal property sold by a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(7) 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 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.
(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) Personal property sold to interstate carriers for
hire for use as rolling stock moving in interstate commerce
or to lessors under leases of one year or longer executed or
in effect at the time of purchase 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.
(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.
(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) Petroleum products sold to a purchaser if the
seller is prohibited by federal law from charging tax to the
purchaser.
(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) 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 exploration, mining, offhighway 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.
(22) 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.
(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) 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 driveaway decal 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
driveaway decal 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.
(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.
(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" or an "exotic
game hunting area" as those terms are used in the Wildlife
Code or at a hunting enclosure approved through rules adopted
by the Department of Natural Resources. 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, 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.
(36) 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 this Act. This paragraph
is exempt from the provisions of Section 2-70.
(37) 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 this Act. This paragraph is exempt from the
provisions of Section 2-70.
(38) (36) Beginning on January 1, 2002, 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) (36). The permit issued
under this paragraph (38) (36) 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.
(Source: P.A. 91-51, eff. 6-30-99; 91-200, eff. 7-20-99;
91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637, eff.
8-20-99; 91-644, eff. 8-20-99; 92-16, eff. 6-28-01; 92-35,
eff. 7-1-01; 92-227, eff. 8-2-01; 92-337, eff. 8-10-01;
92-484, eff. 8-23-01; 92-488, eff. 8-23-01; revised 1-15-02.)
(35 ILCS 120/3) (from Ch. 120, par. 442)
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.
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.
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 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.
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.
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, 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.
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.
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 the effective date of this amendatory Act of 1985,
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 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 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 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.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into
the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
and on and after July 1, 1989, 3.8% thereof shall be paid
into the Build Illinois Fund; provided, however, that if in
any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
as the case may be, of the moneys received by the Department
and required to be paid into the Build Illinois Fund pursuant
to this Act, Section 9 of the Use Tax Act, Section 9 of the
Service Use Tax Act, and Section 9 of the Service Occupation
Tax Act, such Acts being hereinafter called the "Tax Acts"
and such aggregate of 2.2% or 3.8%, as the case may be, of
moneys being hereinafter called the "Tax Act Amount", and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall be less than the
Annual Specified Amount (as hereinafter defined), an amount
equal to the difference shall be immediately paid into the
Build Illinois Fund from other moneys received by the
Department pursuant to the Tax Acts; the "Annual Specified
Amount" means the amounts specified below for fiscal years
1986 through 1993:
Fiscal Year Annual Specified Amount
1986 $54,800,000
1987 $76,650,000
1988 $80,480,000
1989 $88,510,000
1990 $115,330,000
1991 $145,470,000
1992 $182,730,000
1993 $206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994
and each fiscal year thereafter; and further provided, that
if on the last business day of any month the sum of (1) the
Tax Act Amount required to be deposited into the Build
Illinois Bond Account in the Build Illinois Fund during such
month and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall
have been less than 1/12 of the Annual Specified Amount, an
amount equal to the difference shall be immediately paid into
the Build Illinois Fund from other moneys received by the
Department pursuant to the Tax Acts; and, further provided,
that in no event shall the payments required under the
preceding proviso result in aggregate payments into the Build
Illinois Fund pursuant to this clause (b) for any fiscal year
in excess of the greater of (i) the Tax Act Amount or (ii)
the Annual Specified Amount for such fiscal year. The
amounts payable into the Build Illinois Fund under clause (b)
of the first sentence in this paragraph shall be payable only
until such time as the aggregate amount on deposit under each
trust indenture securing Bonds issued and outstanding
pursuant to the Build Illinois Bond Act is sufficient, taking
into account any future investment income, to fully provide,
in accordance with such indenture, for the defeasance of or
the payment of the principal of, premium, if any, and
interest on the Bonds secured by such indenture and on any
Bonds expected to be issued thereafter and all fees and costs
payable with respect thereto, all as certified by the
Director of the Bureau of the Budget. If on the last
business day of any month in which Bonds are outstanding
pursuant to the Build Illinois Bond Act, the aggregate of
moneys deposited in the Build Illinois Bond Account in the
Build Illinois Fund in such month shall be less than the
amount required to be transferred in such month from the
Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence
shall be deemed to constitute payments pursuant to clause (b)
of the first sentence of this paragraph and shall reduce the
amount otherwise payable for such fiscal year pursuant to
that clause (b). The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and
charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois
Fund as provided in the preceding paragraph or in any
amendment thereto hereafter enacted, the following specified
monthly installment of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority provided under Section 8.25f of the
State Finance Act, but not in excess of sums designated as
"Total Deposit", shall be deposited in the aggregate from
collections under Section 9 of the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 9 of the Service Occupation
Tax Act, and Section 3 of the Retailers' Occupation Tax Act
into the McCormick Place Expansion Project Fund in the
specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 and 275,000,000
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 2042.
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 amendment thereto
hereafter enacted, each month the Department shall pay into
the Local Government Distributive Fund 0.4% of the net
revenue realized for the preceding month from the 5% general
rate or 0.4% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate, as the case may
be, on the selling price of tangible personal property which
amount shall, subject to appropriation, be distributed as
provided in Section 2 of the State Revenue Sharing Act. No
payments or distributions pursuant to this paragraph shall be
made if the tax imposed by this Act on photoprocessing
products is declared unconstitutional, or if the proceeds
from such tax are unavailable for distribution because of
litigation.
Subject to payment of amounts into the Build Illinois
Fund, and the McCormick Place Expansion Project Fund, and the
Local Government Distributive Fund pursuant to the preceding
paragraphs or in any amendments thereto hereafter enacted,
beginning July 1, 1993, the Department shall each month pay
into the Illinois Tax Increment Fund 0.27% of 80% of the net
revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Local Government Distributive 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 Community Affairs
Law of the Civil Administrative Code of Illinois.
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. 91-37, eff. 7-1-99; 91-51, eff. 6-30-99;
91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 91-872, eff.
7-1-00; 91-901, eff. 1-1-01; 92-12, eff. 7-1-01; 92-16, eff.
6-28-01; 92-208, eff. 8-2-01; 92-484, eff. 8-23-01; 92-492,
eff. 1-1-02; revised 9-14-01.)
Section 29. The Property Tax Code is amended by changing
Sections 15-25, 18-165, and 31-5 as follows:
(35 ILCS 200/15-25)
Sec. 15-25. Removal of exemptions. If the Department
determines that any property has been unlawfully exempted
from taxation, or is no longer entitled to exemption, the
Department shall, before January 1 of any year, direct the
chief county assessment officer to assess the property and
return it to the assessment rolls for the next assessment
year. The Department shall give notice of its decision to
the owner of the property by certified mail. The decision
shall be subject to review and hearing under with Section
8-35, upon application by the owner filed within 10 days
after the notice of decision is mailed. However, the
extension of taxes on the assessment shall not be delayed by
any proceedings under this Section. If the property is
determined to be exempt, any taxes extended upon the
assessment shall be abated or, if already paid, be refunded.
(Source: P.A. 82-554; 88-455; revised 12-04-01.)
(35 ILCS 200/18-165)
Sec. 18-165. Abatement of taxes.
(a) Any taxing district, upon a majority vote of its
governing authority, may, after the determination of the
assessed valuation of its property, order the clerk of that
county to abate any portion of its taxes on the following
types of property:
(1) Commercial and industrial.
(A) The property of any commercial or
industrial firm, including but not limited to the
property of (i) any firm that is used for
collecting, separating, storing, or processing
recyclable materials, locating within the taxing
district during the immediately preceding year from
another state, territory, or country, or having been
newly created within this State during the
immediately preceding year, or expanding an existing
facility, or (ii) any firm that is used for the
generation and transmission of electricity locating
within the taxing district during the immediately
preceding year or expanding its presence within the
taxing district during the immediately preceding
year by construction of a new electric generating
facility that uses natural gas as its fuel, or any
firm that is used for production operations at a
new, expanded, or reopened coal mine within the
taxing district, that has been certified as a High
Impact Business by the Illinois Department of
Commerce and Community Affairs. The property of any
firm used for the generation and transmission of
electricity shall include all property of the firm
used for transmission facilities as defined in
Section 5.5 of the Illinois Enterprise Zone Act.
The abatement shall not exceed a period of 10 years
and the aggregate amount of abated taxes for all
taxing districts combined shall not exceed
$4,000,000.
(A-5) Any property in the taxing district of a
new electric generating facility, as defined in
Section 605-332 of the Department of Commerce and
Community Affairs Law of the Civil Administrative
Code of Illinois. The abatement shall not exceed a
period of 10 years. The abatement shall be subject
to the following limitations:
(i) if the equalized assessed valuation
of the new electric generating facility is
equal to or greater than $25,000,000 but less
than $50,000,000, then the abatement may not
exceed (i) over the entire term of the
abatement, 5% of the taxing district's
aggregate taxes from the new electric
generating facility and (ii) in any one year of
abatement, 20% of the taxing district's taxes
from the new electric generating facility;
(ii) if the equalized assessed valuation
of the new electric generating facility is
equal to or greater than $50,000,000 but less
than $75,000,000, then the abatement may not
exceed (i) over the entire term of the
abatement, 10% of the taxing district's
aggregate taxes from the new electric
generating facility and (ii) in any one year of
abatement, 35% of the taxing district's taxes
from the new electric generating facility;
(iii) if the equalized assessed valuation
of the new electric generating facility is
equal to or greater than $75,000,000 but less
than $100,000,000, then the abatement may not
exceed (i) over the entire term of the
abatement, 20% of the taxing district's
aggregate taxes from the new electric
generating facility and (ii) in any one year of
abatement, 50% of the taxing district's taxes
from the new electric generating facility;
(iv) if the equalized assessed valuation
of the new electric generating facility is
equal to or greater than $100,000,000 but less
than $125,000,000, then the abatement may not
exceed (i) over the entire term of the
abatement, 30% of the taxing district's
aggregate taxes from the new electric
generating facility and (ii) in any one year of
abatement, 60% of the taxing district's taxes
from the new electric generating facility;
(v) if the equalized assessed valuation
of the new electric generating facility is
equal to or greater than $125,000,000 but less
than $150,000,000, then the abatement may not
exceed (i) over the entire term of the
abatement, 40% of the taxing district's
aggregate taxes from the new electric
generating facility and (ii) in any one year of
abatement, 60% of the taxing district's taxes
from the new electric generating facility;
(vi) if the equalized assessed valuation
of the new electric generating facility is
equal to or greater than $150,000,000, then the
abatement may not exceed (i) over the entire
term of the abatement, 50% of the taxing
district's aggregate taxes from the new
electric generating facility and (ii) in any
one year of abatement, 60% of the taxing
district's taxes from the new electric
generating facility.
The abatement is not effective unless the owner
of the new electric generating facility agrees to
repay to the taxing district all amounts previously
abated, together with interest computed at the rate
and in the manner provided for delinquent taxes, in
the event that the owner of the new electric
generating facility closes the new electric
generating facility before the expiration of the
entire term of the abatement.
The authorization of taxing districts to abate
taxes under this subdivision (a)(1)(A-5) expires on
January 1, 2010.
(B) The property of any commercial or
industrial development of at least 500 acres having
been created within the taxing district. The
abatement shall not exceed a period of 20 years and
the aggregate amount of abated taxes for all taxing
districts combined shall not exceed $12,000,000.
(C) The property of any commercial or
industrial firm currently located in the taxing
district that expands a facility or its number of
employees. The abatement shall not exceed a period
of 10 years and the aggregate amount of abated taxes
for all taxing districts combined shall not exceed
$4,000,000. The abatement period may be renewed at
the option of the taxing districts.
(2) Horse racing. Any property in the taxing
district which is used for the racing of horses and upon
which capital improvements consisting of expansion,
improvement or replacement of existing facilities have
been made since July 1, 1987. The combined abatements
for such property from all taxing districts in any county
shall not exceed $5,000,000 annually and shall not exceed
a period of 10 years.
(3) Auto racing. Any property designed exclusively
for the racing of motor vehicles. Such abatement shall
not exceed a period of 10 years.
(4) Academic or research institute. The property
of any academic or research institute in the taxing
district that (i) is an exempt organization under
paragraph (3) of Section 501(c) of the Internal Revenue
Code, (ii) operates for the benefit of the public by
actually and exclusively performing scientific research
and making the results of the research available to the
interested public on a non-discriminatory basis, and
(iii) employs more than 100 employees. An abatement
granted under this paragraph shall be for at least 15
years and the aggregate amount of abated taxes for all
taxing districts combined shall not exceed $5,000,000.
(5) Housing for older persons. Any property in the
taxing district that is devoted exclusively to affordable
housing for older households. For purposes of this
paragraph, "older households" means those households (i)
living in housing provided under any State or federal
program that the Department of Human Rights determines is
specifically designed and operated to assist elderly
persons and is solely occupied by persons 55 years of age
or older and (ii) whose annual income does not exceed 80%
of the area gross median income, adjusted for family
size, as such gross income and median income are
determined from time to time by the United States
Department of Housing and Urban Development. The
abatement shall not exceed a period of 15 years, and the
aggregate amount of abated taxes for all taxing districts
shall not exceed $3,000,000.
(6) Historical society. For assessment years 1998
through 2003, the property of an historical society
qualifying as an exempt organization under Section
501(c)(3) of the federal Internal Revenue Code.
(7) Recreational facilities. Any property in the
taxing district (i) that is used for a municipal airport,
(ii) that is subject to a leasehold assessment under
Section 9-195 of this Code and (iii) which is sublet from
a park district that is leasing the property from a
municipality, but only if the property is used
exclusively for recreational facilities or for parking
lots used exclusively for those facilities. The
abatement shall not exceed a period of 10 years.
(8) Relocated corporate headquarters. If approval
occurs within 5 years after the effective date of this
amendatory Act of the 92nd General Assembly, any property
or a portion of any property in a taxing district that is
used by an eligible business for a corporate headquarters
as defined in the Corporate Headquarters Relocation Act.
Instead of an abatement under this paragraph (8), a
taxing district may enter into an agreement with an
eligible business to make annual payments to that
eligible business in an amount not to exceed the property
taxes paid directly or indirectly by that eligible
business to the taxing district and any other taxing
districts for premises occupied pursuant to a written
lease and may make those payments without the need for an
annual appropriation. No school district, however, may
enter into an agreement with, or abate taxes for, an
eligible business unless the municipality in which the
corporate headquarters is located agrees to provide
funding to the school district in an amount equal to the
amount abated or paid by the school district as provided
in this paragraph (8). Any abatement ordered or
agreement entered into under this paragraph (8) may be
effective for the entire term specified by the taxing
district, except the term of the abatement or annual
payments may not exceed 20 years.
(b) Upon a majority vote of its governing authority, any
municipality may, after the determination of the assessed
valuation of its property, order the county clerk to abate
any portion of its taxes on any property that is located
within the corporate limits of the municipality in accordance
with Section 8-3-18 of the Illinois Municipal Code.
(Source: P.A. 91-644, eff. 8-20-99; 91-885, eff. 7-6-00;
92-12, eff. 7-1-01; 92-207, eff. 8-1-01; 92-247, eff. 8-3-01;
revised 9-19-01.)
(35 ILCS 200/31-5)
Sec. 31-5. Definitions. "Recordation" includes the
issuance of certificates of title by Registrars of Title
under the Registered Titles (Torrens) Act pursuant to the
filing of deeds or trust documents for that purpose, as well
as the recording of deeds or trust documents by recorders.
"Department" means the Department of Revenue.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a
receiver, executor, trustee, guardian or other representative
appointed by order of any court.
"Value" means the amount of the full actual
consideration, including the amount of any lien assumed by
the buyer.
"Trust document" means a document required to be recorded
under the Land Trust Recordation and Transfer Tax Act.
(Source: P.A. 88-455; incorporates 88-480; 88-670, eff.
12-2-94; revised 12-13-01.)
Section 30. The Motor Fuel Tax Law is amended by
changing Section 15 as follows:
(35 ILCS 505/15) (from Ch. 120, par. 431)
Sec. 15. 1. Any person who knowingly acts as a
distributor of motor fuel or supplier of special fuel, or
receiver of fuel without having a license so to do, or who
knowingly fails or refuses to file a return with the
Department as provided in Section 2b, Section 5, or Section
5a of this Act, or who knowingly fails or refuses to make
payment to the Department as provided either in Section 2b,
Section 6, Section 6a, or Section 7 of this Act, shall be
guilty of a Class 3 felony. Each day any person knowingly
acts as a distributor of motor fuel, supplier of special
fuel, or receiver of fuel without having a license so to do
or after such a license has been revoked, constitutes a
separate offense.
2. Any person who acts as a motor carrier without having
a valid motor fuel use tax license, issued by the Department
or by a member jurisdiction under the provisions of the
International Fuel Tax Agreement, or a valid single trip
permit is guilty of a Class A misdemeanor for a first offense
and is guilty of a Class 4 felony for each subsequent
offense. Any person (i) who fails or refuses to make payment
to the Department as provided in Section 13a.1 of this Act or
in the International Fuel Tax Agreement referenced in Section
14a, or (ii) who fails or refuses to make the quarterly
return as provided in Section 13a.3 is guilty of a Class 4
felony; and for each subsequent offense, such person is
guilty of a Class 3 felony.
3. In case such person acting as a distributor,
receiver, supplier, or motor carrier is a corporation, then
the officer or officers, agent or agents, employee or
employees, of such corporation responsible for any act of
such corporation, or failure of such corporation to act,
which acts or failure to act constitutes a violation of any
of the provisions of this Act as enumerated in paragraphs 1
and 2 of this Section, shall be punished by such fine or
imprisonment, or by both such fine and imprisonment as
provided in those paragraphs.
3.5. Any person who knowingly enters false information
on any supporting documentation required to be kept by
Section 6 or 6a of this Act is guilty of a Class 3 felony.
3.7. Any person who knowingly attempts in any manner to
evade or defeat any tax imposed by this Act or the payment of
any tax imposed by this Act is guilty of a Class 2 felony.
4. Any person who refuses, upon demand, to submit for
inspection, books and records, or who fails or refuses to
keep books and records in violation of Section 12 of this
Act, or any distributor, receiver, or supplier who violates
any reasonable rule or regulation adopted by the Department
for the enforcement of this Act is guilty of a Class A
misdemeanor. Any person who acts as a blender in violation
of Section 3 of this Act or who having transported reportable
motor fuel within Section 7b of this Act fails to make the
return required by that Section, is guilty of a Class 4
felony.
5. Any person licensed under Section 13a.4, 13a.5, or
the International Fuel Tax Agreement who: (a) fails or
refuses to keep records and books, as provided in Section
13a.2 or as required by the terms of the International Fuel
Tax Agreement, (b) refuses upon demand by the Department to
submit for inspection and examination the records required by
Section 13a.2 of this Act or by the terms of the
International Fuel Tax Agreement, or (c) violates any
reasonable rule or regulation adopted by the Department for
the enforcement of this Act, is guilty of a Class A
misdemeanor.
6. Any person who makes any false return or report to
the Department as to any material fact required by Sections
2b, 5, 5a, 7, 13, or 13a.3 of this Act or by the
International Fuel Tax Agreement is guilty of a Class 2
felony.
7. A prosecution for any violation of this Section may
be commenced anytime within 5 years of the commission of that
violation. A prosecution for tax evasion as set forth in
paragraph 3.7 of this Section may be prosecuted any time
within 5 years of the commission of the last act in
furtherance of evasion. The running of the period of
limitations under this Section shall be suspended while any
proceeding or appeal from any proceeding relating to the
quashing or enforcement of any grand jury or administrative
subpoena issued in connection with an investigation of the
violation of any provision of this Act is pending.
8. Any person who provides false documentation required
by any Section of this Act is guilty of a Class 4 felony.
9. Any person filing a fraudulent application or order
form under any provision of this Act is guilty of a Class A
misdemeanor. For each subsequent offense, the person is
guilty of a Class 4 felony.
10. Any person who acts as a motor carrier and who fails
to carry a manifest as provided in Section 5.5 is guilty of a
Class A misdemeanor. For each subsequent offense, the person
is guilty of a Class 4 felony.
11. Any person who knowingly sells or attempts to sell
dyed diesel fuel for highway use or for use by
recreational-type watercraft on the waters of this State is
guilty of a Class 4 felony. For each subsequent offense, the
person is guilty of a Class 2 felony.
12. Any person who knowingly possesses dyed diesel fuel
for highway use or for use by recreational-type watercraft on
the waters of this State is guilty of a Class A misdemeanor.
For each subsequent offense, the person is guilty of a Class
4 felony.
13. Any person who sells or transports dyed diesel fuel
without the notice required by Section 4e shall pay the
following penalty:
First occurrence....................................$ 500
Second and each occurrence thereafter..............$1,000
14. Any person who owns, operates, or controls any
container, storage tank, or facility used to store or
distribute dyed diesel fuel without the notice required by
Section 4f shall pay the following penalty:
First occurrence....................................$ 500
Second and each occurrence thereafter..............$1,000
15. If a motor vehicle required to be registered for
highway purposes is found to have dyed diesel fuel within the
ordinary fuel tanks attached to the motor vehicle or if a
recreational-type watercraft on the waters of this State is
found to have dyed diesel fuel within the ordinary fuel tanks
attached to the watercraft, the operator shall pay the
following penalty:
First occurrence...................................$2,500
Second and each occurrence thereafter..............$5,000
16. Any licensed motor fuel distributor or licensed
supplier who sells or attempts to sell dyed diesel fuel for
highway use or for use by recreational-type watercraft on the
waters of this State shall pay the following penalty:
First occurrence..................................$ 5,000
Second and each occurrence thereafter.............$10,000
17. Any person who knowingly sells or distributes dyed
diesel fuel without the notice required by Section 4e is
guilty of a petty offense. For each subsequent offense, the
person is guilty of a Class A misdemeanor.
18. Any person who knowingly owns, operates, or controls
any container, storage tank, or facility used to store or
distribute dyed diesel fuel without the notice required by
Section 4f is guilty of a petty offense. For each subsequent
offense the person is guilty of a Class A misdemeanor.
For purposes of this Section, dyed diesel fuel means any
dyed diesel fuel whether or not dyed pursuant to Section 4d
of this Law.
Any person aggrieved by any action of the Department
under item 13, 14, 15, or 16 of this Section may protest the
action by making a written request for a hearing within 60
days of the original action. If the hearing is not requested
in writing within 60 days, the original action is final.
All penalties received under items 13, 14, 15, and 16 of
this Section shall be deposited into the Tax Compliance and
Administration Fund.
(Source: P.A. 91-173, eff. 1-1-00; 92-30, eff. 7-1-01;
92-232, eff. 8-2-01; revised 9-19-01.)
Section 31. The Illinois Pension Code is amended by
changing Sections 1-113.7, 14-110, 14-114, 16-106, and
17-119.1 as follows:
(40 ILCS 5/1-113.7)
Sec. 1-113.7. Registration of investments; custody and
safekeeping. The board of trustees may register the
investments of its pension fund in the name of the pension
fund, in the nominee name of a bank or trust company
authorized to conduct a trust business in Illinois, or in the
nominee name of the Illinois Public Treasurer's Investment
Pool.
The assets of the pension fund and ownership of its
investments shall be protected through third-party custodial
safekeeping. The board of trustees may appoint as custodian
of the investments of its pension fund the treasurer of the
municipality, a bank or trust company authorized to conduct a
trust business in Illinois, or the Illinois Public
Treasurer's Investment Pool.
A dealer may not maintain possession of or control over
securities of a pension fund subject to the provisions of
this Section unless it is registered as a broker-dealer with
the U.S. Securities and Exchange Commission and is a member
in good standing of the National Association of Securities
Dealers, and (1) with respect to securities that are not
issued only in book-entry form, (A) all such securities of
each fund are either held in safekeeping in a place
reasonably free from risk of destruction or held in custody
by a securities depository that is a "clearing agency"
registered with the U.S. Securities and Exchange Commission,
(B) the dealer is a member of the Securities Investor
Protection Corporation, (C) the dealer sends to each fund, no
less frequently than each calendar quarter, an itemized
statement showing the moneys and securities in the custody or
possession of the dealer at the end of such period, and (D)
an independent certified public accountant account conducts
an audit, no less frequently than each calendar year, that
reviews the dealer's internal accounting controls and
procedures for safeguarding securities; and (2) with respect
to securities that are issued only in book-entry form, (A)
all such securities of each fund are held either in a
securities depository that is a "clearing agency" registered
with the U.S. Securities and Exchange Commission or in a bank
that is a member of the Federal Reserve System, (B) the
dealer records the ownership interest of the funds in such
securities on the dealer's books and records, (C) the dealer
is a member of the Securities Investor Protection
Corporation, (D) the dealer sends to each fund, no less
frequently than each calendar quarter, an itemized statement
showing the moneys and securities in the custody or
possession of the dealer at the end of such period, and (E)
the dealer's financial statement (which shall contain among
other things a statement of the dealer's net capital and its
required net capital computed in accordance with Rule 15c3-1
under the Securities Exchange Act of 1934) is audited
annually by an independent certified public accountant, and
the dealer's most recent audited financial statement is
furnished to the fund. No broker-dealer serving as a
custodian for any public pension fund as provided by this Act
shall be authorized to serve as an investment advisor for
that same public pension fund as described in Section 1-101.4
of this Code, to the extent that the investment advisor
acquires or disposes of any asset of that same public pension
fund. Notwithstanding the foregoing, in no event may a
broker or dealer that is a natural person maintain possession
of or control over securities or other assets of a pension
fund subject to the provisions of this Section. In
maintaining securities of a pension fund subject to the
provisions of this Section, each dealer must maintain those
securities in conformity with the provisions of Rule
15c3-3(b) of the Securities Exchange Act of 1934 (Physical
Possession or Control of Securities). The Director of the
Department of Insurance may adopt such rules and regulations
as shall be necessary and appropriate in his or her judgment
to effectuate the purposes of this Section.
A bank or trust company authorized to conduct a trust
business in Illinois shall register, deposit, or hold
investments for safekeeping, all in accordance with the
obligations and subject to the limitations of the Securities
in Fiduciary Accounts Act.
(Source: P.A. 90-507, eff. 8-22-97; revised 12-13-01.)
(40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
Sec. 14-110. Alternative retirement annuity.
(a) Any member who has withdrawn from service with not
less than 20 years of eligible creditable service and has
attained age 55, and any member who has withdrawn from
service with not less than 25 years of eligible creditable
service and has attained age 50, regardless of whether the
attainment of either of the specified ages occurs while the
member is still in service, shall be entitled to receive at
the option of the member, in lieu of the regular or minimum
retirement annuity, a retirement annuity computed as
follows:
(i) for periods of service as a noncovered
employee: if retirement occurs on or after January 1,
2001, 3% of final average compensation for each year of
creditable service; if retirement occurs before January
1, 2001, 2 1/4% of final average compensation for each of
the first 10 years of creditable service, 2 1/2% for each
year above 10 years to and including 20 years of
creditable service, and 2 3/4% for each year of
creditable service above 20 years; and
(ii) for periods of eligible creditable service as
a covered employee: if retirement occurs on or after
January 1, 2001, 2.5% of final average compensation for
each year of creditable service; if retirement occurs
before January 1, 2001, 1.67% of final average
compensation for each of the first 10 years of such
service, 1.90% for each of the next 10 years of such
service, 2.10% for each year of such service in excess of
20 but not exceeding 30, and 2.30% for each year in
excess of 30.
Such annuity shall be subject to a maximum of 75% of
final average compensation if retirement occurs before
January 1, 2001 or to a maximum of 80% of final average
compensation if retirement occurs on or after January 1,
2001.
These rates shall not be applicable to any service
performed by a member as a covered employee which is not
eligible creditable service. Service as a covered employee
which is not eligible creditable service shall be subject to
the rates and provisions of Section 14-108.
(b) For the purpose of this Section, "eligible
creditable service" means creditable service resulting from
service in one or more of the following positions:
(1) State policeman;
(2) fire fighter in the fire protection service of
a department;
(3) air pilot;
(4) special agent;
(5) investigator for the Secretary of State;
(6) conservation police officer;
(7) investigator for the Department of Revenue;
(8) security employee of the Department of Human
Services;
(9) Central Management Services security police
officer;
(10) security employee of the Department of
Corrections;
(11) dangerous drugs investigator;
(12) investigator for the Department of State
Police;
(13) investigator for the Office of the Attorney
General;
(14) controlled substance inspector;
(15) investigator for the Office of the State's
Attorneys Appellate Prosecutor;
(16) Commerce Commission police officer;
(17) arson investigator;
(18) State highway maintenance worker.
A person employed in one of the positions specified in
this subsection is entitled to eligible creditable service
for service credit earned under this Article while undergoing
the basic police training course approved by the Illinois Law
Enforcement Training Standards Board, if completion of that
training is required of persons serving in that position. For
the purposes of this Code, service during the required basic
police training course shall be deemed performance of the
duties of the specified position, even though the person is
not a sworn peace officer at the time of the training.
(c) For the purposes of this Section:
(1) The term "state policeman" includes any title
or position in the Department of State Police that is
held by an individual employed under the State Police
Act.
(2) The term "fire fighter in the fire protection
service of a department" includes all officers in such
fire protection service including fire chiefs and
assistant fire chiefs.
(3) The term "air pilot" includes any employee
whose official job description on file in the Department
of Central Management Services, or in the department by
which he is employed if that department is not covered by
the Personnel Code, states that his principal duty is the
operation of aircraft, and who possesses a pilot's
license; however, the change in this definition made by
this amendatory Act of 1983 shall not operate to exclude
any noncovered employee who was an "air pilot" for the
purposes of this Section on January 1, 1984.
(4) The term "special agent" means any person who
by reason of employment by the Division of Narcotic
Control, the Bureau of Investigation or, after July 1,
1977, the Division of Criminal Investigation, the
Division of Internal Investigation, the Division of
Operations, or any other Division or organizational
entity in the Department of State Police is vested by law
with duties to maintain public order, investigate
violations of the criminal law of this State, enforce the
laws of this State, make arrests and recover property.
The term "special agent" includes any title or position
in the Department of State Police that is held by an
individual employed under the State Police Act.
(5) The term "investigator for the Secretary of
State" means any person employed by the Office of the
Secretary of State and vested with such investigative
duties as render him ineligible for coverage under the
Social Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
A person who became employed as an investigator for
the Secretary of State between January 1, 1967 and
December 31, 1975, and who has served as such until
attainment of age 60, either continuously or with a
single break in service of not more than 3 years
duration, which break terminated before January 1, 1976,
shall be entitled to have his retirement annuity
calculated in accordance with subsection (a),
notwithstanding that he has less than 20 years of credit
for such service.
(6) The term "Conservation Police Officer" means
any person employed by the Division of Law Enforcement of
the Department of Natural Resources and vested with such
law enforcement duties as render him ineligible for
coverage under the Social Security Act by reason of
Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of
that Act. The term "Conservation Police Officer"
includes the positions of Chief Conservation Police
Administrator and Assistant Conservation Police
Administrator.
(7) The term "investigator for the Department of
Revenue" means any person employed by the Department of
Revenue and vested with such investigative duties as
render him ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
(8) The term "security employee of the Department
of Human Services" means any person employed by the
Department of Human Services who (i) is employed at the
Chester Mental Health Center and has daily contact with
the residents thereof, (ii) is employed within a security
unit at a facility operated by the Department and has
daily contact with the residents of the security unit,
(iii) is employed at a facility operated by the
Department that includes a security unit and is regularly
scheduled to work at least 50% of his or her working
hours within that security unit, or (iv) is a mental
health police officer. "Mental health police officer"
means any person employed by the Department of Human
Services in a position pertaining to the Department's
mental health and developmental disabilities functions
who is vested with such law enforcement duties as render
the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act. "Security unit"
means that portion of a facility that is devoted to the
care, containment, and treatment of persons committed to
the Department of Human Services as sexually violent
persons, persons unfit to stand trial, or persons not
guilty by reason of insanity. With respect to past
employment, references to the Department of Human
Services include its predecessor, the Department of
Mental Health and Developmental Disabilities.
The changes made to this subdivision (c)(8) by
Public Act 92-14 this amendatory Act of the 92nd General
Assembly apply to persons who retire on or after January
1, 2001, notwithstanding Section 1-103.1.
(9) "Central Management Services security police
officer" means any person employed by the Department of
Central Management Services who is vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
(10) The term "security employee of the Department
of Corrections" means any employee of the Department of
Corrections or the former Department of Personnel, and
any member or employee of the Prisoner Review Board, who
has daily contact with inmates by working within a
correctional facility or who is a parole officer or an
employee who has direct contact with committed persons in
the performance of his or her job duties.
(11) The term "dangerous drugs investigator" means
any person who is employed as such by the Department of
Human Services.
(12) The term "investigator for the Department of
State Police" means a person employed by the Department
of State Police who is vested under Section 4 of the
Narcotic Control Division Abolition Act with such law
enforcement powers as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
(13) "Investigator for the Office of the Attorney
General" means any person who is employed as such by the
Office of the Attorney General and is vested with such
investigative duties as render him ineligible for
coverage under the Social Security Act by reason of
Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that
Act. For the period before January 1, 1989, the term
includes all persons who were employed as investigators
by the Office of the Attorney General, without regard to
social security status.
(14) "Controlled substance inspector" means any
person who is employed as such by the Department of
Professional Regulation and is vested with such law
enforcement duties as render him ineligible for coverage
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
The term "controlled substance inspector" includes the
Program Executive of Enforcement and the Assistant
Program Executive of Enforcement.
(15) The term "investigator for the Office of the
State's Attorneys Appellate Prosecutor" means a person
employed in that capacity on a full time basis under the
authority of Section 7.06 of the State's Attorneys
Appellate Prosecutor's Act.
(16) "Commerce Commission police officer" means any
person employed by the Illinois Commerce Commission who
is vested with such law enforcement duties as render him
ineligible for coverage under the Social Security Act by
reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
218(l)(1) of that Act.
(17) "Arson investigator" means any person who is
employed as such by the Office of the State Fire Marshal
and is vested with such law enforcement duties as render
the person ineligible for coverage under the Social
Security Act by reason of Sections 218(d)(5)(A),
218(d)(8)(D), and 218(l)(1) of that Act. A person who
was employed as an arson investigator on January 1, 1995
and is no longer in service but not yet receiving a
retirement annuity may convert his or her creditable
service for employment as an arson investigator into
eligible creditable service by paying to the System the
difference between the employee contributions actually
paid for that service and the amounts that would have
been contributed if the applicant were contributing at
the rate applicable to persons with the same social
security status earning eligible creditable service on
the date of application.
(18) The term "State highway maintenance worker"
means a person who is either of the following:
(i) A person employed on a full-time basis by
the Illinois Department of Transportation in the
position of highway maintainer, highway maintenance
lead worker, highway maintenance lead/lead worker,
heavy construction equipment operator, power shovel
operator, or bridge mechanic; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the highways
that form a part of the State highway system in
serviceable condition for vehicular traffic.
(ii) A person employed on a full-time basis by
the Illinois State Toll Highway Authority in the
position of equipment operator/laborer H-4,
equipment operator/laborer H-6, welder H-4,
welder H-6, mechanical/electrical H-4,
mechanical/electrical H-6, water/sewer H-4,
water/sewer H-6, sign maker/hanger H-4, sign
maker/hanger H-6, roadway lighting H-4, roadway
lighting H-6, structural H-4, structural H-6,
painter H-4, or painter H-6; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the Authority's
tollways in serviceable condition for vehicular
traffic.
(d) A security employee of the Department of
Corrections, and a security employee of the Department of
Human Services who is not a mental health police officer,
shall not be eligible for the alternative retirement annuity
provided by this Section unless he or she meets the following
minimum age and service requirements at the time of
retirement:
(i) 25 years of eligible creditable service and age
55; or
(ii) beginning January 1, 1987, 25 years of
eligible creditable service and age 54, or 24 years of
eligible creditable service and age 55; or
(iii) beginning January 1, 1988, 25 years of
eligible creditable service and age 53, or 23 years of
eligible creditable service and age 55; or
(iv) beginning January 1, 1989, 25 years of
eligible creditable service and age 52, or 22 years of
eligible creditable service and age 55; or
(v) beginning January 1, 1990, 25 years of eligible
creditable service and age 51, or 21 years of eligible
creditable service and age 55; or
(vi) beginning January 1, 1991, 25 years of
eligible creditable service and age 50, or 20 years of
eligible creditable service and age 55.
Persons who have service credit under Article 16 of this
Code for service as a security employee of the Department of
Corrections or the Department of Human Services in a position
requiring certification as a teacher may count such service
toward establishing their eligibility under the service
requirements of this Section; but such service may be used
only for establishing such eligibility, and not for the
purpose of increasing or calculating any benefit.
(e) If a member enters military service while working in
a position in which eligible creditable service may be
earned, and returns to State service in the same or another
such position, and fulfills in all other respects the
conditions prescribed in this Article for credit for military
service, such military service shall be credited as eligible
creditable service for the purposes of the retirement annuity
prescribed in this Section.
(f) For purposes of calculating retirement annuities
under this Section, periods of service rendered after
December 31, 1968 and before October 1, 1975 as a covered
employee in the position of special agent, conservation
police officer, mental health police officer, or investigator
for the Secretary of State, shall be deemed to have been
service as a noncovered employee, provided that the employee
pays to the System prior to retirement an amount equal to (1)
the difference between the employee contributions that would
have been required for such service as a noncovered employee,
and the amount of employee contributions actually paid, plus
(2) if payment is made after July 31, 1987, regular interest
on the amount specified in item (1) from the date of service
to the date of payment.
For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,
1968 and before January 1, 1982 as a covered employee in the
position of investigator for the Department of Revenue shall
be deemed to have been service as a noncovered employee,
provided that the employee pays to the System prior to
retirement an amount equal to (1) the difference between the
employee contributions that would have been required for such
service as a noncovered employee, and the amount of employee
contributions actually paid, plus (2) if payment is made
after January 1, 1990, regular interest on the amount
specified in item (1) from the date of service to the date of
payment.
(g) A State policeman may elect, not later than January
1, 1990, to establish eligible creditable service for up to
10 years of his service as a policeman under Article 3, by
filing a written election with the Board, accompanied by
payment of an amount to be determined by the Board, equal to
(i) the difference between the amount of employee and
employer contributions transferred to the System under
Section 3-110.5, and the amounts that would have been
contributed had such contributions been made at the rates
applicable to State policemen, plus (ii) interest thereon at
the effective rate for each year, compounded annually, from
the date of service to the date of payment.
Subject to the limitation in subsection (i), a State
policeman may elect, not later than July 1, 1993, to
establish eligible creditable service for up to 10 years of
his service as a member of the County Police Department under
Article 9, by filing a written election with the Board,
accompanied by payment of an amount to be determined by the
Board, equal to (i) the difference between the amount of
employee and employer contributions transferred to the System
under Section 9-121.10 and the amounts that would have been
contributed had those contributions been made at the rates
applicable to State policemen, plus (ii) interest thereon at
the effective rate for each year, compounded annually, from
the date of service to the date of payment.
(h) Subject to the limitation in subsection (i), a State
policeman or investigator for the Secretary of State may
elect to establish eligible creditable service for up to 12
years of his service as a policeman under Article 5, by
filing a written election with the Board on or before January
31, 1992, and paying to the System by January 31, 1994 an
amount to be determined by the Board, equal to (i) the
difference between the amount of employee and employer
contributions transferred to the System under Section 5-236,
and the amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
Subject to the limitation in subsection (i), a State
policeman, conservation police officer, or investigator for
the Secretary of State may elect to establish eligible
creditable service for up to 10 years of service as a
sheriff's law enforcement employee under Article 7, by filing
a written election with the Board on or before January 31,
1993, and paying to the System by January 31, 1994 an amount
to be determined by the Board, equal to (i) the difference
between the amount of employee and employer contributions
transferred to the System under Section 7-139.7, and the
amounts that would have been contributed had such
contributions been made at the rates applicable to State
policemen, plus (ii) interest thereon at the effective rate
for each year, compounded annually, from the date of service
to the date of payment.
(i) The total amount of eligible creditable service
established by any person under subsections (g), (h), (j),
(k), and (l) of this Section shall not exceed 12 years.
(j) Subject to the limitation in subsection (i), an
investigator for the Office of the State's Attorneys
Appellate Prosecutor or a controlled substance inspector may
elect to establish eligible creditable service for up to 10
years of his service as a policeman under Article 3 or a
sheriff's law enforcement employee under Article 7, by filing
a written election with the Board, accompanied by payment of
an amount to be determined by the Board, equal to (1) the
difference between the amount of employee and employer
contributions transferred to the System under Section 3-110.6
or 7-139.8, and the amounts that would have been contributed
had such contributions been made at the rates applicable to
State policemen, plus (2) interest thereon at the effective
rate for each year, compounded annually, from the date of
service to the date of payment.
(k) Subject to the limitation in subsection (i) of this
Section, an alternative formula employee may elect to
establish eligible creditable service for periods spent as a
full-time law enforcement officer or full-time corrections
officer employed by the federal government or by a state or
local government located outside of Illinois, for which
credit is not held in any other public employee pension fund
or retirement system. To obtain this credit, the applicant
must file a written application with the Board by March 31,
1998, accompanied by evidence of eligibility acceptable to
the Board and payment of an amount to be determined by the
Board, equal to (1) employee contributions for the credit
being established, based upon the applicant's salary on the
first day as an alternative formula employee after the
employment for which credit is being established and the
rates then applicable to alternative formula employees, plus
(2) an amount determined by the Board to be the employer's
normal cost of the benefits accrued for the credit being
established, plus (3) regular interest on the amounts in
items (1) and (2) from the first day as an alternative
formula employee after the employment for which credit is
being established to the date of payment.
(l) Subject to the limitation in subsection (i), a
security employee of the Department of Corrections may elect,
not later than July 1, 1998, to establish eligible creditable
service for up to 10 years of his or her service as a
policeman under Article 3, by filing a written election with
the Board, accompanied by payment of an amount to be
determined by the Board, equal to (i) the difference between
the amount of employee and employer contributions transferred
to the System under Section 3-110.5, and the amounts that
would have been contributed had such contributions been made
at the rates applicable to security employees of the
Department of Corrections, plus (ii) interest thereon at the
effective rate for each year, compounded annually, from the
date of service to the date of payment.
(Source: P.A. 91-357, eff. 7-29-99; 91-760, eff. 1-1-01;
92-14, eff. 6-28-01; 92-257, eff. 8-6-01; revised 9-10-01.)
(40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
Sec. 14-114. Automatic increase in retirement annuity.
(a) Any person receiving a retirement annuity under this
Article who retires having attained age 60, or who retires
before age 60 having at least 35 years of creditable service,
or who retires on or after January 1, 2001 at an age which,
when added to the number of years of his or her creditable
service, equals at least 85, shall, on January 1 next
following the first full year of retirement, have the amount
of the then fixed and payable monthly retirement annuity
increased 3%. Any person receiving a retirement annuity
under this Article who retires before attainment of age 60
and with less than (i) 35 years of creditable service if
retirement is before January 1, 2001, or (ii) the number of
years of creditable service which, when added to the member's
age, would equal 85, if retirement is on or after January 1,
2001, shall have the amount of the fixed and payable
retirement annuity increased by 3% on the January 1 occurring
on or next following (1) attainment of age 60, or (2) the
first anniversary of retirement, whichever occurs later.
However, for persons who receive the alternative retirement
annuity under Section 14-110, references in this subsection
(a) to attainment of age 60 shall be deemed to refer to
attainment of age 55. For a person receiving early
retirement incentives under Section 14-108.3 whose retirement
annuity began after January 1, 1992 pursuant to an extension
granted under subsection (e) of that Section, the first
anniversary of retirement shall be deemed to be January 1,
1993. For a person who retires on or after June 28, 2001 the
effective date of this amendatory Act of the 92nd General
Assembly and on or before October 1, 2001 the first day of
the fourth calendar month following the month in which this
amendatory Act takes effect, and whose retirement annuity is
calculated, in whole or in part, under Section 14-110 or
subsection (g) or (h) of Section 14-108, the first
anniversary of retirement shall be deemed to be January 1,
2002.
On each January 1 following the date of the initial
increase under this subsection, the employee's monthly
retirement annuity shall be increased by an additional 3%.
Beginning January 1, 1990, all automatic annual increases
payable under this Section shall be calculated as a
percentage of the total annuity payable at the time of the
increase, including previous increases granted under this
Article.
(b) The provisions of subsection (a) of this Section
shall be applicable to an employee only if the employee makes
the additional contributions required after December 31, 1969
for the purpose of the automatic increases for not less than
the equivalent of one full year. If an employee becomes an
annuitant before his additional contributions equal one full
year's contributions based on his salary at the date of
retirement, the employee may pay the necessary balance of the
contributions to the system, without interest, and be
eligible for the increasing annuity authorized by this
Section.
(c) The provisions of subsection (a) of this Section
shall not be applicable to any annuitant who is on retirement
on December 31, 1969, and thereafter returns to State
service, unless the member has established at least one year
of additional creditable service following reentry into
service.
(d) In addition to other increases which may be provided
by this Section, on January 1, 1981 any annuitant who was
receiving a retirement annuity on or before January 1, 1971
shall have his retirement annuity then being paid increased
$1 per month for each year of creditable service. On January
1, 1982, any annuitant who began receiving a retirement
annuity on or before January 1, 1977, shall have his
retirement annuity then being paid increased $1 per month for
each year of creditable service.
On January 1, 1987, any annuitant who began receiving a
retirement annuity on or before January 1, 1977, shall have
the monthly retirement annuity increased by an amount equal
to 8¢ per year of creditable service times the number of
years that have elapsed since the annuity began.
(e) Every person who receives the alternative retirement
annuity under Section 14-110 and who is eligible to receive
the 3% increase under subsection (a) on January 1, 1986,
shall also receive on that date a one-time increase in
retirement annuity equal to the difference between (1) his
actual retirement annuity on that date, including any
increases received under subsection (a), and (2) the amount
of retirement annuity he would have received on that date if
the amendments to subsection (a) made by Public Act 84-162
had been in effect since the date of his retirement.
(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
revised 9-10-01.)
(40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
Sec. 16-106. Teacher. "Teacher": The following
individuals, provided that, for employment prior to July 1,
1990, they are employed on a full-time basis, or if not
full-time, on a permanent and continuous basis in a position
in which services are expected to be rendered for at least
one school term:
(1) Any educational, administrative, professional
or other staff employed in the public common schools
included within this system in a position requiring
certification under the law governing the certification
of teachers;
(2) Any educational, administrative, professional
or other staff employed in any facility of the Department
of Children and Family Services or the Department of
Human Services, in a position requiring certification
under the law governing the certification of teachers,
and any person who (i) works in such a position for the
Department of Corrections, (ii) was a member of this
System on May 31, 1987, and (iii) did not elect to become
a member of the State Employees' Retirement System
pursuant to Section 14-108.2 of this Code; except that
"teacher" does not include any person who (A) becomes a
security employee of the Department of Human Services, as
defined in Section 14-110, after June 28, 2001 (the
effective date of Public Act 92-14) this amendatory Act
of the 92nd General Assembly, or (B) becomes a member of
the State Employees' Retirement System pursuant to
Section 14-108.2c of this Code;
(3) Any regional superintendent of schools,
assistant regional superintendent of schools, State
Superintendent of Education; any person employed by the
State Board of Education as an executive; any executive
of the boards engaged in the service of public common
school education in school districts covered under this
system of which the State Superintendent of Education is
an ex-officio member;
(4) Any employee of a school board association
operating in compliance with Article 23 of the School
Code who is certificated under the law governing the
certification of teachers;
(5) Any person employed by the retirement system
who:
(i) was an employee of and a participant in
the system on August 17, 2001 (the effective date of
Public Act 92-416) this amendatory Act of the 92nd
General Assembly, or
(ii) becomes an employee of the system on or
after August 17, 2001 the effective date of this
amendatory Act of the 92nd General Assembly;
(6) Any educational, administrative, professional
or other staff employed by and under the supervision and
control of a regional superintendent of schools, provided
such employment position requires the person to be
certificated under the law governing the certification of
teachers and is in an educational program serving 2 or
more districts in accordance with a joint agreement
authorized by the School Code or by federal legislation;
(7) Any educational, administrative, professional
or other staff employed in an educational program
servi